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Segment Information
 12 Months Ended
Jun. 30, 2021
Segment Reporting [Abstract]  
Segment Information
13. 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 pharmacies, including pharmacies in community health centers, 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. 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. This segment also distributes medical products to patients' homes in the United States through our Cardinal Health at-Home Solutions division.
The following table presents revenue for each reportable segment and Corporate:
(in millions)202120202019
Pharmaceutical$145,796 $137,495 $129,917 
Medical16,687 15,444 15,633 
Total segment revenue162,483 152,939 145,550 
Corporate (1)(16)(17)(16)
Total revenue$162,467 $152,922 $145,534 
(1)Corporate revenue consists of the elimination of inter-segment revenue and other revenue not allocated to the segments.

The following tables present revenue for each reportable segment and disaggregated revenue within our two reportable segments and Corporate:
(in millions)202120202019
Pharmaceutical Distribution and Specialty Solutions (1) (2)$144,988 $136,693 $129,067 
Nuclear and Precision Health Solutions808 802 850 
Pharmaceutical segment revenue
145,796 137,495 129,917 
Medical distribution and products (3)14,485 13,429 13,833 
Cardinal Health at-Home Solutions2,202 2,015 1,800 
Medical segment revenue
16,687 15,444 15,633 
  Total segment revenue162,483 152,939 145,550 
Corporate (4)(16)(17)(16)
Total revenue$162,467 $152,922 $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 Pharmaceutical segment businesses except for Nuclear and Precision Health Solutions division.
(3)Comprised of all Medical segment businesses except for Cardinal Health at-Home Solutions division
(4)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)202120202019
United States$157,756 $148,707 $141,479 
International4,727 4,232 4,071 
Total segment revenue162,483 152,939 145,550 
Corporate (1)(16)(17)(16)
Total revenue$162,467 $152,922 $145,534 
(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);
•surgical gown recall costs/(income); in connection with a voluntary recall for certain surgical gowns and a voluntary recall and field actions for surgical procedure packs containing affected gowns, we recognized a pre-tax charge of $85 million during fiscal 2020;
•restructuring and employee severance;
•amortization and other acquisition-related costs;
•impairments and (gain)/loss on disposal of assets; in connection with the divestiture of the Cordis business, we recognized a $60 million pre-tax write-down of the net assets held for sale during fiscal 2021; in connection with the naviHealth divestiture discussed in Note 2, we recognized a pre-tax gain of $508 million during fiscal 2019;
•litigation (recoveries)/charges, net; in connection with the opioid litigation as discussed further in Note 7, we recognized pre-tax charges of $1.17 billion and $5.63 billion during fiscal 2021 and 2020, respectively;
•state opioid assessment related to prior fiscal years; in connection with the New York Opioid Stewardship Act as discussed further in Note 7, we recognized a pre-tax charge of $41 million during fiscal 2021, related to calendar years 2017 and 2018 assessments;
•other (income)/expense, net;
•interest expense, net;
•loss on early extinguishment of debt;
•(gain)/loss on sale of equity interest in naviHealth; in connection with the sale of our remaining equity interest in a partnership that owned naviHealth as discussed in Note 2, we recognized a $579 million pre-tax gain ($493 million after tax) during fiscal 2020;
•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 $27 million, $69 million and $55 million for fiscal 2021, 2020 and 2019, respectively.
The following tables present segment profit by reportable segment and Corporate:
(in millions)202120202019
Pharmaceutical$1,684 $1,753 $1,834 
Medical577 663 576 
Total segment profit2,261 2,416 2,410 
Corporate(1,789)(6,514)(350)
Total operating earnings$472 $(4,098)$2,060 
The following tables present depreciation and amortization and additions to property and equipment by reportable segment and Corporate:
(in millions)202120202019
Pharmaceutical$151 $135 $147 
Medical226 243 288 
Corporate406 535 565 
Total depreciation and amortization$783 $913 $1,000 
(in millions)202120202019
Pharmaceutical$55 $47 $35 
Medical97 86 74 
Corporate248 242 219 
Total additions to property and equipment$400 $375 $328 
The following table presents total assets for each reportable segment and Corporate at June 30:
(in millions)202120202019
Pharmaceutical$23,624 $22,398 $22,446 
Medical (1)15,408 14,691 15,284 
Corporate5,421 3,677 3,233 
Total assets$44,453 $40,766 $40,963 
(1) Assets of $1.1 billion classified as held for sale related to the Cordis divestiture were included within Medical at June 30, 2021.

The following tables present property and equipment, net by geographic area:
(in millions)202120202019
United States$1,958 $1,880 $1,846 
International402 486 510 
Property and equipment, net$2,360 $2,366 $2,356