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.

Revenue

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; 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.

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. We further expanded this segment's portfolio of manufactured products through the acquisition of the Patient Recovery Business from Medtronic in July 2017, which includes incontinence, wound care, enteral feeding, urology, operating room supply, electrode and needle, syringe and sharps disposal product lines. 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.

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



(in millions)	2019			2018			2017
Pharmaceutical	$	129,917		$	121,241		$	116,463
Medical	15,633			15,581			13,524
Total segment revenue	145,550			136,822			129,987
Corporate (1)	(16		)	(13		)	(11		)
Total revenue	$	145,534		$	136,809		$	129,976


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

The following table presents disaggregated revenue within our two reportable segments:



	2019
(in millions)
Pharmaceutical Distribution and Specialty Solutions (1)	$	129,067
Nuclear and Precision Health Solutions	850
Pharmaceutical segment revenue	129,917
Medical distribution and products (2)	13,833
Cardinal Health at-Home Solutions	1,800
Medical segment revenue	15,633
Total segment revenue	145,550
Corporate (3)	(16		)
Total revenue	$	145,534


(1)	Products and services offered by our Specialty Solutions division are referred to as “specialty pharmaceutical products and services"


(2)	Comprised of all Medical segment businesses except for Cardinal Health at-Home Solutions division


(3)	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:



(in millions)	2019			2018			2017
United States	$	141,479		$	132,539		$	125,017
International	4,071			4,283			4,970
Total segment revenue	145,550			136,822			129,987
Corporate (1)	(16		)	(13		)	(11		)
Total revenue	$	145,534		$	136,809		$	129,976


(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, 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); restructuring and employee severance; amortization and other acquisition-related costs; impairments and (gain)/loss on disposal of assets; litigation (recoveries)/charges, net; other (income)/expense, net; interest expense, net; loss on extinguishment of debt; and 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 $55 million, $43 million and $17 million for fiscal 2019, 2018 and 2017, respectively.

In connection with the naviHealth divestiture discussed in Note 2, we recognized a pre-tax gain of $508 million during fiscal 2019 which was retained at Corporate.

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



(in millions)	2019			2018			2017
Pharmaceutical	$	1,834		$	1,992		$	2,187
Medical	576			662			572
Total segment profit	2,410			2,654			2,759
Corporate	(350		)	(2,528		)	(639		)
Total operating earnings	$	2,060		$	126		$	2,120

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



(in millions)	2019		2018		2017
Pharmaceutical	$	147	$	156	$	122
Medical	288		278		156
Corporate	565		598		439
Total depreciation and amortization	$	1,000	$	1,032	$	717



(in millions)	2019		2018		2017
Pharmaceutical	$	35	$	58	$	50
Medical	74		127		123
Corporate	219		199		214
Total additions to property and equipment	$	328	$	384	$	387

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



(in millions)	2019		2018		2017
Pharmaceutical	$	22,446	$	21,421	$	21,848
Medical	15,284		16,066		10,688
Corporate	3,233		2,464		7,576
Total assets	$	40,963	$	39,951	$	40,112

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



(in millions)	2019		2018		2017
United States	$	1,846	$	1,950	$	1,623
International	510		537		256
Property and equipment, net	$	2,356	$	2,487	$	1,879