15. 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.

The 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 to support the development, marketing, and distribution of specialty pharmaceutical products; operates 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. This segment also imports and distributes pharmaceuticals, over-the-counter healthcare and consumer products and provides specialty pharmacy and other services in China.

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 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, Canada and China. This segment also distributes medical products to patients' homes and provides post-acute care management and transition services and software to hospitals, other healthcare providers and payers in the United States.

The following table presents revenue for each reportable segment and Corporate:



(in millions)	2017			2016			2015
Pharmaceutical	$	116,463		$	109,131		$	91,116
Medical	13,524			12,430			11,395
Total segment revenue	129,987			121,561			102,511
Corporate (1)	(11		)	(15		)	20
Total revenue	$	129,976		$	121,546		$	102,531


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

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. The results attributable to noncontrolling interests of consolidated entities are recorded within segment profit. Corporate expenses are allocated to the segments based on headcount, level of benefit provided, and other ratable allocation methodologies.

We do not allocate the following items to our segments: LIFO inventory charges/(credits); restructuring and employee severance; amortization and other acquisition-related costs; impairments and (gain)/loss on disposal of assets; litigation (recoveries)/charges, net; other income, net; interest expense, net; loss on extinguishment of debt; and 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. 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 $17 million, $34 million and $26 million for fiscal 2017, 2016 and 2015, respectively.

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



(in millions)	2017			2016			2015
Pharmaceutical	$	2,187		$	2,488		$	2,094
Medical	572			457			433
Total segment profit	2,759			2,945			2,527
Corporate	(639		)	(486		)	(366		)
Total operating earnings	$	2,120		$	2,459		$	2,161

The following tables present depreciation and amortization and additions to property and equipment by reportable segment and Corporate:



(in millions)	2017		2016		2015
Pharmaceutical	$	122	$	128	$	124
Medical	156		136		119
Corporate	439		377		208
Total depreciation and amortization	$	717	$	641	$	451



(in millions)	2017		2016		2015
Pharmaceutical	$	50	$	88	$	90
Medical	123		96		87
Corporate	214		281		123
Total additions to property and equipment	$	387	$	465	$	300

The following table presents total assets for each reportable segment and Corporate at June 30:



(in millions)	2017		2016		2015
Pharmaceutical	$	21,848	$	20,662	$	17,385
Medical	10,688		10,236		7,095
Corporate	7,576		3,224		5,662
Total assets	$	40,112	$	34,122	$	30,142

The following tables present revenue and property and equipment, net by geographic area:



(in millions)	2017		2016		2015
United States	$	125,006	$	116,864	$	98,435
International	4,970		4,682		4,096
Total revenue	$	129,976	$	121,546	$	102,531



(in millions)	2017		2016		2015
United States	$	1,623	$	1,558	$	1,327
International	256		238		179
Property and equipment, net	$	1,879	$	1,796	$	1,506