Cardinal Health 2015 Annual Report Download - page 69

Notes to Financial Statements
Cardinal Health | Fiscal 2015 Form 10-K 68
expenses for such projects are often retained at Corporate.
Investment spending within Corporate was $26 million, $33 million
and $37 million for fiscal 2015, 2014 and 2013, respectively.
Beginning in fiscal 2016, we are changing our methodology for
allocating certain portions of enterprise-wide incentive compensation
expenses among Corporate and the segments. This change does
not impact consolidated operating earnings or net earnings.
The following tables present segment profit by reportable segment
and Corporate:
(in millions) 2015 2014 2013
Pharmaceutical $ 2,094 $ 1,745 $ 1,734
Medical 433 444 372
Total segment profit 2,527 2,189 2,106
Corporate (366) (304) (1,110)
Total operating earnings $ 2,161 $ 1,885 $ 996
The following tables present depreciation and amortization and
additions to property and equipment by reportable segment and
at Corporate:
(in millions) 2015 2014 2013
Pharmaceutical $ 124 $ 128 $ 125
Medical 119 130 137
Corporate 208 201 135
Total depreciation and
amortization $ 451 $ 459 $ 397
(in millions) 2015 2014 2013
Pharmaceutical $ 90 $ 72 $ 46
Medical 87 72 48
Corporate 123 105 101
Total additions to property and
equipment $ 300 $ 249 $ 195
The following table presents total assets for each reportable segment
and Corporate at June 30:
(in millions) 2015 2014 2013
Pharmaceutical $ 17,385 $ 15,361 $ 16,258
Medical 7,095 6,768 6,521
Corporate 5,662 3,904 3,040
Total assets $ 30,142 $ 26,033 $ 25,819
The following tables present revenue and property and equipment,
net by geographic area:
(in millions) 2015 2014 2013
United States $ 98,435 $ 87,449 $ 97,994
International 4,096 3,635 3,099
Total revenue $ 102,531 $ 91,084 $ 101,093
(in millions) 2015 2014 2013
United States $ 1,327 $ 1,301 $ 1,355
International 179 158 134
Property and equipment, net $ 1,506 $ 1,459 $ 1,489
16. Share-Based Compensation and Savings
Plans
Share-Based Compensation Plans
We maintain stock incentive plans (collectively, the “Plans”) for the
benefit of certain of our officers, directors and employees. At June
30, 2015, 22 million shares remain available for future grants under
the Cardinal Health, Inc. 2011 Long-Term Incentive Plan ("2011
LTIP"). Under the 2011 LTIP's fungible share counting provisions,
stock options are counted against the plan as one share for every
share issued; awards other than stock options are counted against
the plan as two and one-half shares for every share issued. This
means that only 9 million shares could be issued under awards other
than stock options while 22 million shares could be issued under
stock options. Shares are issued out of treasury shares when stock
options are exercised and when restricted share units and
performance share units vest.
The following table provides total share-based compensation
expense by type of award:
(in millions) 2015 2014 2013
Restricted share unit expense $ 69 $ 62 $ 60
Employee stock option expense 21 21 23
Performance share unit expense 20 13 10
Total share-based compensation $ 110 $ 96 $ 93
The total tax benefit related to share-based compensation was $38
million, $33 million and $32 million for fiscal 2015, 2014 and 2013,
respectively.
Stock Options
Employee stock options granted under the Plans generally vest in
equal annual installments over three years and are exercisable for
periods ranging from seven to ten years from the grant date. All stock
options are exercisable at a price equal to the market value of the
common shares underlying the option on the grant date.