10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 ______________________________

FORM 10-Q

______________________________ 

ý QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2020

or

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

001-36587

(Commission File Number)

 _____________________________

Catalent, Inc.

(Exact name of registrant as specified in its charter)

_____________________________ 

Delaware			20-8737688
(State or other jurisdiction of incorporation or organization)			(I.R.S. Employer Identification No.)
14 Schoolhouse Road,	Somerset,	NJ	08873
(Address of principal executive offices)			(Zip code)

(732) 537-6200

Registrant's telephone number, including area code

______________________________ 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.   ☒ Yes ¨  No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).       ☒ Yes ¨  No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☒	Accelerated filer	¨
Non-accelerated filer	¨	Smaller reporting company		¨
		Emerging growth company		¨

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    ¨ Yes    ☒ No 

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading symbols(s)	Name of each exchange on which registered
Common Stock	CTLT	New York Stock Exchange

On May 1, 2020, there were 154,897,515 shares of the Registrant's common stock, par value $0.01 per share, issued and outstanding.

CATALENT, INC. and Subsidiaries

INDEX TO FORM 10-Q

For the Three and Nine Months Ended March 31, 2020

Item		Page
Part I.	Financial Information
Item 1.	Financial Statements (unaudited)	6
	Consolidated Statements of Operations for the Three and Nine Months Ended March 31, 2020 and March 31, 2019	6
	Consolidated Statements of Comprehensive Income/(Loss) for the Three and Nine Months Ended March 31, 2020 and March 31, 2019	7
	Consolidated Balance Sheets as of March 31, 2020 and June 30, 2019	8
	Consolidated Statement of Changes in Shareholders' Equity/(Deficit) for the Three and Nine Months Ended March 31, 2020 and March 31, 2019	9
	Consolidated Statements of Cash Flows for the Nine Months Ended March 31, 2020 and March 31, 2019	11
	Notes to Unaudited Consolidated Financial Statements	12
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	32
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	49
Item 4.	Controls and Procedures	50
Part II.	Other Information	51
Item 1.	Legal Proceedings	51
Item 1A.	Risk Factors	51
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	52
Item 3.	Defaults Upon Senior Securities	52
Item 4.	Mine Safety Disclosures	52
Item 5.	Other Information	52
Item 6.	Exhibits	52
Signatures		53

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Special Note Regarding Forward-Looking Statements

In addition to historical information, this Quarterly Report on Form 10-Q may contain “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), which are subject to the “safe harbor” created by those sections. All statements, other than statements of historical facts, included in this Quarterly Report on Form 10-Q are forward-looking statements. In some cases, you can identify these forward-looking statements by the use of words such as “outlook,” “believes,” “expects,” “potential,” “continues,” “may,” “will,” “should,” “could,” “seeks,” “approximately,” “predicts,” “intends,” “plans,” “estimates,” “anticipates” or the negative version of these words or other comparable words.

These statements are based on assumptions and assessments made by our management in light of their experience and their perception of historical trends, current conditions, expected future developments, and other factors they believe to be appropriate. Any forward-looking statement is subject to various risks and uncertainties. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements.

Some of the factors that may cause actual results, developments and business decisions to differ materially from those contemplated by such forward-looking statements include, but are not limited to, those described under the section entitled “Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended June 30, 2019 (the “Fiscal 2019 10-K”) and the following:

•Our business, financial condition, and results of operations may be adversely affected by global health epidemics, including the COVID-19 pandemic.

•We participate in a highly competitive market, and increased competition may adversely affect our business.

•The demand for our offerings depends in part on our customers’ research and development and the clinical and market success of their products. Our business, financial condition, and results of operations may be harmed if our customers spend less on, or are less successful in, these activities. In addition, customer spending may be affected by, among other things, the COVID-19 pandemic or recessionary economic conditions caused in whole or in part by the pandemic.

•We are subject to product and other liability risks that could exceed our anticipated costs or adversely affect our results of operations, financial condition, liquidity, and cash flows.

•Failure to comply with existing and future regulatory requirements could adversely affect our results of operations and financial condition or result in claims from customers.

•Failure to provide quality offerings to our customers could have an adverse effect on our business and subject us to regulatory actions or costly litigation.

•The services and offerings we provide are highly exacting and complex, and, if we encounter problems providing the services or support required, our business could suffer.

•Our global operations are subject to economic, political, and regulatory risks, including the risks of changing regulatory standards or changing interpretations of existing standards, that could affect the profitability of our operations or require costly changes to our procedures. In addition, changes to our procedures, or additional procedures, implemented to comply with public health orders or best practice guidelines as a result of the COVID-19 pandemic may increase our costs or reduce our productivity and thereby affects our business, financial condition, or results of operations.

•The exit of the United Kingdom (the “U.K.”) from the European Union, particularly after the end of the current transitional period, could have future adverse effects on our operations, revenues, and costs, and therefore our profitability.

•If we do not enhance our existing or introduce new technology or service offerings in a timely manner, our offerings may become obsolete over time, customers may not buy our offerings, and our revenue and profitability may decline.

•We and our customers depend on patents, copyrights, trademarks, know-how, trade secrets, and other forms of intellectual property protections, but these protections may not be adequate.

•Our offerings or our customers’ products may infringe on the intellectual property rights of third parties.

•Our future results of operations are subject to fluctuations in the costs, availability, and suitability of the components of the products we manufacture, including active pharmaceutical ingredients, excipients, purchased components, and raw materials. In addition, the COVID-19 pandemic may interfere with the

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operations of certain of our direct or indirect suppliers or with international trade for these supplies, which may either raise our costs or reduce the productivity or slow the timing of our operations.

•Changes in market access or healthcare reimbursement for our customers’ products in the United States (“U.S.”) or internationally, including possible changes to the U.S. Affordable Care Act, could adversely affect our results of operations and financial condition by affecting demand for our offerings or the financial health of our customers.

•As a global enterprise, fluctuations in the exchange rate of the U.S. dollar, our reporting currency, against other currencies could have a material adverse effect on our financial performance and results of operations.

•Tax legislative or regulatory initiatives, new interpretations or developments concerning existing tax laws, or challenges to our tax positions could adversely affect our results of operations and financial condition.

•Our ability to use our net operating loss carryforwards, ex-U.S. tax credit carryforwards, and certain other tax attributes may be limited.

•Changes to the estimated future profitability of the business may require that we establish an additional valuation allowance against all or some portion of our net U.S. deferred tax assets.

•We are dependent on key personnel whose continued employment and engagement at current levels cannot be assured.

•We use advanced information and communication systems to run our operations, compile and analyze financial and operational data, and communicate among our employees, customers, and counter-parties, and the risks generally associated with information and communications systems could adversely affect our results of operations. We are continuously working to install new, and upgrade existing, systems and provide employee awareness training around phishing, malware, and other cyber-security risks to enhance the protections available to us, but such protections may be inadequate to address malicious attacks or inadvertent compromises of data security.

•We engage from time to time in acquisitions and other transactions that may complement or expand our business or divest of non-strategic businesses or assets. We may not be able to complete such transactions, and such transactions, if executed, pose significant risks, including risks relating to our ability to successfully and efficiently integrate acquisitions or execute on dispositions and realize anticipated benefits therefrom. The failure to execute or realize the full benefits from any such transaction could have a negative effect on our operations.

•Gene and cell therapies are relatively new and still-developing modes of treatment, dependent on cutting-edge technologies, and our customers’ gene or cell therapies may be perceived as unsafe or may result in unforeseen adverse events. Negative public opinion, continuing research, or increased regulatory scrutiny of gene or cell therapies and their financial cost may damage public perception of the safety, utility, or efficacy of gene or cell therapies and harm our customers’ ability to conduct their business or obtain regulatory approvals for their gene or cell therapy products, and thereby have an indirect, adverse effect on our gene or cell therapy offerings.

•We are subject to environmental, health, and safety laws and regulations, which could increase our costs and restrict our operations in the future.

•We are subject to labor and employment laws and regulations, which could increase our costs and restrict our operations in the future.

•Certain of our pension plans are underfunded, and additional cash contributions we may make to increase the funding level will reduce the cash available for our business, such as the payment of our interest expense.

•Our substantial leverage could adversely affect our ability to raise additional capital to fund our operations, limit our ability to react to changes in the economy or in our industry, expose us to interest-rate risk to the extent of our variable rate debt, and prevent us from meeting our obligations under our indebtedness. These risks may be increased in a recessionary environment, particularly as sources of capital may become less available or more expensive.

•Despite our high indebtedness level, we and our subsidiaries are still capable of incurring significant additional debt, which could further exacerbate the risks associated with our substantial indebtedness.

•Our debt agreements contain restrictions that limit our flexibility in operating our business.

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•Despite the limitations in our debt agreements, we retain the ability to take certain actions that may interfere with our ability timely to pay our substantial indebtedness.

•We are currently using and may in the future use derivative financial instruments to reduce our exposure to market risks from changes in interest rates on our variable-rate indebtedness or changes in currency exchange rates, and any such instrument may expose us to risks related to counterparty credit worthiness or non-performance of these instruments.

We caution you that the risks, uncertainties and other factors referenced above may not contain all of the risks, uncertainties, and other factors that are important to you. In addition, we cannot assure you that we will realize the results, benefits, or developments that we expect or anticipate or, even if substantially realized, that they will result in the consequences or affect us or our business in the way expected. There can be no assurance that (i) we have correctly measured or identified all of the factors affecting our business or the extent of these factors’ likely impact, (ii) the available information with respect to these factors on which such analysis is based is complete or accurate, (iii) such analysis is correct, or (iv) our strategy, which is based in part on this analysis, will be successful. All forward-looking statements in this report apply only as of the date of this report or as of the date they were made, and we undertake no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments, or otherwise, except as required by law.

Social Media

We use our website (www.catalent.com), our corporate Facebook page (https://www.facebook.com/CatalentPharmaSolutions), and our corporate Twitter account (@catalentpharma) as channels for the distribution of information. The information we post through these channels may be deemed material. Accordingly, investors should monitor these channels, in addition to following our press releases, Securities and Exchange Commission (“SEC”) filings, and public conference calls and webcasts. The contents of our website and social media channels are not, however, a part of this report.

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PART I. FINANCIAL INFORMATION

Item 1.  FINANCIAL STATEMENTS

Catalent, Inc. and Subsidiaries

Consolidated Statements of Operations

(Unaudited; dollars in millions, except per share data)

	Three Months Ended   March 31,				Nine Months Ended   March 31,
	2020		2019		2020		2019
Net revenue	$	760.6	$	617.5	$	2,146.7	$	1,792.3
Cost of sales	521.8		418.8		1,498.0		1,243.7
Gross margin	238.8		198.7		648.7		548.6
Selling, general, and administrative expenses	136.1		129.9		419.9		368.6
Impairment charges and (gain)/loss on sale of assets	0.6		(0.1)		2.1		2.7
Restructuring and other	1.3		3.1		2.5		12.9
Operating earnings	100.8		65.8		224.2		164.4
Interest expense, net	34.4		26.4		105.6		80.0
Other (income)/expense, net	36.7		(3.2)		37.2		3.9
Earnings from operations before income taxes	29.7		42.6		81.4		80.5
Income tax expense	8.8		10.9		14.9		14.2
Net earnings	20.9		31.7		66.5		66.3
Less: Net earnings attributable to preferred shareholders	(9.1)		—		(27.8)		—
Net earnings attributable to common shareholders	$	11.8	$	31.7	$	38.7	$	66.3
Earnings per share:
Basic
Net earnings	$	0.08	$	0.22	$	0.26	$	0.46
Diluted
Net earnings	$	0.08	$	0.22	$	0.26	$	0.46

The accompanying notes are an integral part of these unaudited consolidated financial statements.

6

Catalent, Inc. and Subsidiaries

Consolidated Statements of Comprehensive Income/(Loss)

(Unaudited; dollars in millions)

	Three Months Ended   March 31,				Nine Months Ended   March 31,
	2020		2019		2020		2019
Net earnings	$	20.9	$	31.7	$	66.5	$	66.3
Other comprehensive income/(loss), net of tax
Foreign currency translation adjustments	(43.1)		21.5		(42.8)		(4.9)
Pension and other post-retirement adjustments	0.1		0.4		3.1		1.4
Other comprehensive income/(loss), net of tax	(43.0)		21.9		(39.7)		(3.5)
Comprehensive income/(loss)	$	(22.1)	$	53.6	$	26.8	$	62.8

The accompanying notes are an integral part of these unaudited consolidated financial statements.

7

Catalent, Inc. and Subsidiaries

Consolidated Balance Sheets

(Unaudited; in millions, except share and per share data)

	March 31, 2020		June 30, 2019
ASSETS
Current assets:
Cash and cash equivalents	$	608.4	$	345.4
Trade receivables, net	698.7		693.1
Inventories	297.2		257.2
Prepaid expenses and other	141.8		100.1
Total current assets	1,746.1		1,395.8
Property, plant, and equipment, net	1,769.5		1,536.7
Other assets:
Goodwill	2,449.3		2,220.9
Other intangibles, net	907.3		930.8
Deferred income taxes	45.1		38.6
Other	162.3		61.2
Total assets	$	7,079.6	$	6,184.0
LIABILITIES, REDEEMABLE PREFERRED STOCK, AND SHAREHOLDERS' EQUITY
Current liabilities:
Current portion of long-term obligations and other short-term borrowings	$	271.8	$	76.5
Accounts payable	276.2		255.8
Other accrued liabilities	369.1		338.4
Total current liabilities	917.1		670.7
Long-term obligations, less current portion	2,926.9		2,882.8
Pension liability	137.6		143.6
Deferred income taxes	95.6		74.4
Other liabilities	208.1		124.3
Commitment and contingencies (see Note 16)	—		—
Total liabilities	4,285.3		3,895.8
Redeemable preferred stock, $0.01 par value; 1.0 million shares authorized on March 31, 2020 and June 30, 2019; 650,000 shares issued and outstanding on March 31, 2020 and June 30, 2019	606.6		606.6
Shareholders' equity:
Common stock, $0.01 par value; 1.0 billion shares authorized on March 31, 2020 and June 30, 2019; 154.9 million and 145.7 million issued and outstanding on March 31, 2020 and June 30, 2019, respectively	1.5		1.5
Preferred stock, $0.01 par value; 99 million authorized on March 31, 2020 and June 30, 2019; 0 issued and outstanding on March 31, 2020 and June 30, 2019	—		—
Additional paid in capital	3,261.0		2,757.4
Accumulated deficit	(681.2)		(723.4)
Accumulated other comprehensive income/(loss)	(393.6)		(353.9)
Total shareholders' equity	2,187.7		1,681.6
Total liabilities, redeemable preferred stock, and shareholders' equity	$	7,079.6	$	6,184.0

The accompanying notes are an integral part of these unaudited consolidated financial statements.

8

Catalent, Inc. and Subsidiaries

Consolidated Statement of Changes in Shareholders' Equity

(Unaudited; dollars in millions, except share data in thousands)

Three Months Ended March 31, 2020

Columns may not foot due to rounding	Shares of Common Stock	Common Stock		Additional Paid in Capital		Accumulated Deficit		Accumulated Other Comprehensive Income/(Loss)		Total Shareholders' Equity
Balance at December 31, 2019	146,359.5	$	1.5	$	2,759.2	$	(694.0)	$	(350.6)	$	1,716.1
Equity offering, sale of common stock	8,445.9	0.1		494.1						494.2
Share issuances related to stock-based      compensation	62.4									—
Stock-based compensation				8.6						8.6
Cash paid, in lieu of equity, for tax      withholding				(0.9)						(0.9)
Preferred dividend						(8.1)				(8.1)
Net earnings						20.9				20.9
Other comprehensive loss, net of tax								(43.0)		(43.0)
Balance at March 31, 2020	154,867.8	$	1.5	$	3,261.0	$	(681.2)	$	(393.6)	$	2,187.7

Three Months Ended March 31, 2019

	Shares of Common Stock	Common Stock		Additional Paid in Capital		Accumulated Deficit		Accumulated Other Comprehensive Loss		Total Shareholders' Equity
Balance at December 31, 2018	145,622.9	$	1.5	$	2,735.1	$	(822.4)	$	(351.2)	$	1,563.0
Equity offering, sale of common stock				(0.2)						(0.2)
Share issuances related to stock-based      compensation	83.9									—
Stock-based compensation				6.6						6.6
Cash paid, in lieu of equity, for tax withholding				(2.3)						(2.3)
Net earnings						31.7				31.7
Other comprehensive income, net of tax								21.9		21.9
Balance at March 31, 2019	145,706.8	$	1.5	$	2,739.2	$	(790.7)	$	(329.3)	$	1,620.7

9

Catalent, Inc. and Subsidiaries

Consolidated Statement of Changes in Shareholders' Equity

(Unaudited; dollars in millions, except share data in thousands)

Nine Months ended March 31, 2020

Columns may not foot due to rounding	Shares of Common Stock	Common Stock		Additional Paid in Capital		Accumulated Deficit		Accumulated Other Comprehensive Income/(Loss)		Total Shareholders' Equity
Balance at June 30, 2019	145,738.3	$	1.5	$	2,757.4	$	(723.4)	$	(353.9)	$	1,681.6
Equity offering, sale of common stock	8,445.9	0.1		494.1						494.2
Share issuances related to stock-based      compensation	683.6									—
Stock-based compensation				35.5						35.5
Cash paid, in lieu of equity, for tax withholding				(25.3)						(25.3)
Non-qualified stock				(0.7)						(0.7)
Preferred dividend						(24.3)				(24.3)
Net earnings						66.5				66.5
Other comprehensive loss, net of tax								(39.7)		(39.7)
Balance at March 31, 2020	154,867.8	$	1.5	$	3,261.0	$	(681.2)	$	(393.6)	$	2,187.7

Nine Months ended March 31, 2019

	Shares of Common Stock	Common Stock		Additional Paid in Capital		Accumulated Deficit		Accumulated Other Comprehensive Loss		Total Shareholders' Equity
Balance at June 30, 2018	133,423.6	$	1.3	$	2,283.3	$	(872.1)	$	(325.8)	$	1,086.7
Cumulative effect of change in accounting      for ASC 606, net of tax						15.1				15.1
Equity offering, sale of common stock	11,431.4	0.1		445.2						445.3
Share issuances related to stock-based      compensation	851.8	0.1		(0.1)						—
Stock-based compensation				24.1						24.1
Cash paid, in lieu of equity, for tax withholding				(13.3)						(13.3)
Net earnings						66.3				66.3
Other comprehensive loss, net of tax								(3.5)		(3.5)
Balance at March 31, 2019	145,706.8	$	1.5	$	2,739.2	$	(790.7)	$	(329.3)	$	1,620.7

The accompanying notes are an integral part of these unaudited consolidated financial statements.

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Catalent, Inc. and Subsidiaries

Consolidated Statements of Cash Flows

(Unaudited; dollars in millions)

	Nine Months Ended  March 31,
	2020		2019
CASH FLOWS FROM OPERATING ACTIVITIES:
Net earnings	$	66.5	$	66.3
Adjustments to reconcile earnings from operations to net cash from operations:
Depreciation and amortization	187.3		173.9
Non-cash foreign currency transaction loss, net	2.5		(1.7)
Amortization and write-off of debt financing costs	10.7		7.1
Asset impairments charges and /loss on sale of assets	2.1		2.7
Call premium on debt redemption	10.0		—
Loss on derivative instrument	24.9		—
Equity compensation	35.5		24.1
Benefit for deferred income taxes	5.4		(0.7)
Provision for bad debts and inventory	11.4		10.6
Change in operating assets and liabilities:
Decrease/(increase) in trade receivables	(15.5)		(26.6)
Decrease/(increase) in inventories	(54.7)		(43.1)
Increase in accounts payable	29.9		5.9
Other assets/accrued liabilities, net—current and non-current	(48.4)		(58.7)
Net cash provided by operating activities	267.6		159.8
CASH FLOWS FROM INVESTING ACTIVITIES:
Acquisition of property, equipment, and other productive assets	(303.5)		(129.3)
Proceeds from sale of subsidiaries	20.8		0.4
Payment for acquisitions, net of cash acquired	(379.7)		(127.5)
Payment made for investments	(2.4)		(1.3)
Net cash (used in) investing activities	(664.8)		(257.7)
CASH FLOWS FROM FINANCING ACTIVITIES:
Net change in other borrowings	(45.2)		(6.5)
Proceeds from borrowing, net	1,109.1		—
Payments related to long-term obligations	(808.9)		(508.0)
Financing fees paid	(25.1)		—
Dividends paid	(28.1)		—
Proceeds from sale of common stock, net	494.2		445.3
Cash paid, in lieu of equity, for tax-withholding obligations	(25.3)		(13.3)
Net cash (used in)/provided by financing activities	670.7		(82.5)
Effect of foreign currency exchange on cash	(10.5)		(1.9)
NET INCREASE/(DECREASE) IN CASH AND EQUIVALENTS	263.0		(182.3)
CASH AND EQUIVALENTS AT BEGINNING OF PERIOD	345.4		410.2
CASH AND EQUIVALENTS AT END OF PERIOD	$	608.4	$	227.9
SUPPLEMENTARY CASH FLOW INFORMATION:
Interest paid	$	88.7	$	74.6
Income taxes paid, net	$	38.9	$	35.4

The accompanying notes are an integral part of these unaudited consolidated financial statements.

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Table of Contents

Catalent, Inc. and Subsidiaries

Notes to Unaudited Consolidated Financial Statements

1. BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Business

Catalent, Inc. (“Catalent” or the “Company”) directly and wholly owns PTS Intermediate Holdings LLC (“Intermediate Holdings”). Intermediate Holdings directly and wholly owns Catalent Pharma Solutions, Inc. (“Operating Company”). The financial results of Catalent are comprised of the financial results of Operating Company and its subsidiaries on a consolidated basis.

Basis of Presentation

The accompanying unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. Operating results for the nine months ended March 31, 2020 are not necessarily indicative of the results that may be expected for the year ending June 30, 2020. The consolidated balance sheet at June 30, 2019 has been derived from the audited consolidated financial statements at that date but does not include all of the information and footnotes required by GAAP for complete financial statements. For further information on the Company's accounting policies and footnotes, refer to the consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the year ended June 30, 2019 filed with the Securities and Exchange Commission (the “SEC”).

In the first quarter of fiscal 2020, the Company engaged in a business reorganization to better align its internal business unit structure with its “Follow the Molecule” strategy and the increased focus on its biologics-related offerings. Under the revised structure, the Company changed the components of three of its four operating segments:

•Softgel and Oral Technologies, which includes formulation, development, and clinical and commercial manufacturing of soft capsules, or “softgels”, as well as large-scale manufacturing of oral solid dose forms, for pharmaceutical and consumer health markets, and supporting ancillary services; and

•Biologics, which encompasses biologic cell-line, viral vector gene therapy, and cell therapy development and manufacturing; formulation, development, and manufacturing for parenteral dose forms, including prefilled syringes, vials, and cartridges; and analytical development and testing services for large molecules; and

•Oral and Specialty Delivery, which includes formulation, development, and small-to-medium scale manufacturing for most types of oral solid dose forms, including Zydis orally dissolving tablets; formulation, development, and manufacture of blow-fill-seal unit doses, metered dose inhalers, and nasal products; and analytical development and testing capabilities for small molecules.

Each of these three segments, along with the Company's fourth segment, Clinical Supply Services, which remains unchanged, reports through a separate management team and ultimately reports to the Company's Chief Executive Officer, who is designated as the Chief Operating Decision Maker (“CODM”) for segment reporting purposes. The Company's operating segments are the same as its reporting segments. All prior-period comparative segment information has been restated to reflect the current reportable segments in accordance with Accounting Standards Codification ("ASC") 280, Segment Reporting, promulgated by the Financial Accounting Standards Board (the “FASB”).

Reclassification

Certain prior-period amounts were reclassified to conform to the current period presentation. Contract assets previously presented in trade receivables, net are now presented in prepaid expenses and other, which amounts are further detailed in Note 18, Supplemental Balance Sheet Information.

Foreign Currency Translation

The financial statements of the Company’s operations are generally measured using the local currency as the functional currency. Adjustments to translate the assets and liabilities of operations outside the U.S. into U.S. dollars are accumulated as a component of other comprehensive income/(loss) utilizing period-end exchange rates. Since July 1, 2018, the Company has accounted for its Argentine operations as highly inflationary.

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Research and Development Costs

The Company expenses research and development costs as incurred. Costs incurred in connection with the development of new offerings and manufacturing process improvements are recorded within selling, general, and administrative expenses. Such research and development costs included in selling, general, and administrative expenses amounted to $0.6 million and $1.8 million for the three and nine months ended March 31, 2020, respectively, and $0.9 million and $2.4 million for the three and nine months ended March 31, 2019, respectively. Costs incurred in connection with research and development services the Company provides to customers and services performed in support of the commercial manufacturing process for customers are recorded within cost of sales. Such research and development costs included in cost of sales amounted to $15.8 million and $44.3 million for the three and nine months ended March 31, 2020, respectively, and $11.8 million and $37.4 million for the three and nine months ended March 31, 2019, respectively.

Recent Financial Accounting Standards

Recently Adopted Accounting Standards

In February 2016, the FASB issued Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842), which supersedes ASC 840, Leases. The new guidance requires lessees to recognize most leases on their balance sheets for the rights and obligations created by those leases. The guidance requires enhanced disclosures regarding the amount, timing, and uncertainty of cash flows arising from leases and became effective for public reporting entities in annual reporting periods beginning after December 15, 2018 and interim periods within those fiscal years. The guidance requires adoption of the new standard using the modified retrospective approach. The Company adopted the guidance on July 1, 2019 and elected the transition method that allows for the application of the standard at the adoption date rather than at the beginning of the earliest comparative period presented in the financial statements. The Company also elected the package of practical expedients; as a result, it did not reassess: (i) whether any expired or existing contract is or contains a lease, (ii) whether any expired or existing lease requires capitalization under the new guidance, and (iii) the initial direct cost for any existing lease. The Company also elected (x) not to reassess lease terms using hindsight and (y) to combine lease and non-lease components within a single lease agreement. Upon adoption, the Company recognized $46 million of lease liabilities and a corresponding amount for right-of-use assets on its consolidated balance sheet. The adoption of the guidance did not have any effect on the Company’s consolidated statements of operations or cash flows. Refer to Note 15, Leases for further discussion of the Company's lease accounting policy.

New Accounting Standards Not Adopted as of March 31, 2020

In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides optional guidance to ease the potential burden in accounting for the discontinuation of a reference rate such as LIBOR, formerly known as the London Interbank Offered Rate, because of reference rate reform. The expedients and exceptions provided by the guidance do not apply to contract modifications made and hedging relationships entered into or evaluated after December 31, 2022. The ASU is effective for all entities as of March 12, 2020 through December 31, 2022. The Company is currently evaluating the impact of adopting this guidance on its consolidated financial statements.

In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, which eliminates certain exceptions related to the incremental approach for intraperiod allocation, deferred tax recognition requirement for changes in equity method investments and foreign subsidiaries, and methodology for calculating income taxes in an interim period. The guidance also simplifies certain aspects of the accounting for franchise taxes, the accounting for step-up in the tax basis of goodwill, and accounting for the change in the enacted change in tax laws or rates. The ASU will be effective for fiscal years beginning after December 15, 2020 and interim periods within those fiscal years. The Company is currently evaluating the impact of adopting this guidance on its consolidated financial statements.

In August 2018, the FASB issued ASU 2018-15, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract, which aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The ASU will be effective for fiscal years beginning after December 15, 2019 and interim periods within those fiscal years and allows for either retrospective or prospective application. The Company does not expect the adoption of this guidance to have a material impact on its consolidated financial statements.

In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirement for Fair Value Measurement, which changes the disclosure requirements on fair value measurements in Topic 820. The guidance eliminates certain disclosure requirements that are no longer considered cost

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beneficial and adds new disclosure requirement for Level 3 fair value measurements. The ASU will be effective for fiscal years beginning after December 15, 2019 and interim periods within those fiscal years. The Company does not expect the adoption of this guidance to have a material impact on its consolidated financial statements.

In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which introduces a new accounting model known as Credit Expected Credit Losses (“CECL”). CECL requires earlier recognition of credit losses on financial assets, while also providing additional transparency about credit risk. The CECL model utilizes a lifetime expected credit loss measurement objective for the recognition of credit losses for financial assets at the time they are originated or acquired. The expected credit losses are adjusted each period for changes in expected lifetime credit losses. This model replaces the multiple existing impairment models in current GAAP, which generally require that a loss be incurred before it is recognized. The new standard will apply to receivables arising from revenue transactions such as contract assets and accounts receivables. The ASU will be effective for fiscal years beginning after December 15, 2019. The Company does not expect the adoption of the guidance to have a material impact on its consolidated financial statements.

2. REVENUE RECOGNITION

The Company recognizes revenue in accordance with ASC 606. The Company generally earns its revenue by supplying goods or providing services under contracts with its customers in three primary revenue streams: manufacturing and commercial product supply, development services, and clinical supply services. The Company measures the revenue from customers based on the consideration specified in its contracts, excluding any sales incentive or amount collected on behalf of a third party.

The company generally expenses sales commissions as incurred because either the amortization period is one year or less, or the balance with an amortization period greater than one year is not material.

The following tables allocate revenue, for the three and nine months ended March 31, 2020 and March 31, 2019, by type of activity and reporting segment (in millions):

Three Months Ended March 31, 2020	Softgel & Oral Technologies		Biologics		Oral & Specialty Delivery		Clinical Supply Services		Total
Manufacturing & commercial product supply	$	217.6	$	85.2	$	127.2	$	—	$	430.0
Development services	24.7		164.8		54.2		—		243.7
Clinical supply services	—		—		—		88.9		88.9
Total	$	242.3	$	250.0	$	181.4	$	88.9	$	762.6
			Inter-segment revenue elimination						(2.0)
					Combined net revenue				$	760.6

Three Months Ended March 31, 2019	Softgel & Oral Technologies		Biologics		Oral & Specialty Delivery		Clinical Supply Services		Total
Manufacturing & commercial product supply	$	232.9	$	66.8	$	99.7	$	—	$	399.4
Development services	21.1		66.9		54.1		—		142.1
Clinical supply services	—		—		—		77.8		77.8
Total	$	254.0	$	133.7	$	153.8	$	77.8	$	619.3
			Inter-segment revenue elimination						(1.8)
					Combined net revenue				$	617.5

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Nine Months Ended March 31, 2020	Softgel & Oral Technologies		Biologics		Oral & Specialty Delivery		Clinical Supply Services		Total
Manufacturing & commercial product supply	$	701.5	$	229.6	$	294.5	$	—	$	1,225.6
Development services	69.3		434.2		162.7		—		666.2
Clinical supply services	—		—		—		261.4		261.4
Total	$	770.8	$	663.8	$	457.2	$	261.4	$	2,153.2
			Inter-segment revenue elimination						(6.5)
					Combined net revenue				$	2,146.7

Nine Months Ended March 31, 2019	Softgel & Oral Technologies		Biologics		Oral & Specialty Delivery		Clinical Supply Services		Total
Manufacturing & commercial product supply	$	680.8	$	168.1	$	262.4	$	—	$	1,111.3
Development services	67.7		227.7		156.7		—		452.1
Clinical supply services	—		—		—		236.3		236.3
Total	$	748.5	$	395.8	$	419.1	$	236.3	$	1,799.7
			Inter-segment revenue elimination						(7.4)
					Combined net revenue				$	1,792.3

The following table allocates revenue by the location where the goods were made or the service performed:

(Dollars in millions)	Three Months Ended March 31, 2020		Three Months Ended March 31, 2019		Nine Months Ended March 31, 2020		Nine Months Ended March 31, 2019
United States	$	438.9	$	318.4	$	1,215.9	$	913.9
Europe	258.7		200.8		690.1		609.9
International Other	83.5		108.2		299.8		321.6
Elimination of revenue attributable to multiple locations	(20.5)		(9.9)		(59.1)		(53.1)
Total	$	760.6	$	617.5	$	2,146.7	$	1,792.3

Contract Liabilities

Contract liabilities relate to cash consideration that the Company receives in advance of satisfying the related performance obligations. Changes in the contract liabilities balance during the nine months ended March 31, 2020 are as follows:

(Dollars in millions)
Contract liability
Balance at June 30, 2019	$	177.4
Balance at March 31, 2020	$	180.0
Revenue recognized in the period from:
Amounts included in contract liability at the beginning of the period	$	117.2

3. BUSINESS COMBINATIONS

Paragon Bioservices, Inc. Acquisition

On May 17, 2019, the Company acquired 100% of the equity interest in Catalent Maryland, Inc. (formerly Paragon Bioservices, Inc., “Gene Therapy”) for an aggregate nominal purchase price of $1,192.1 million, which was subject to adjustment (as further discussed below), in order to enhance the Company’s end-to-end integrated biopharmaceutical solutions. Gene Therapy is a leading contract development and manufacturing organization (“CDMO”) focused on the development and manufacturing of cutting-edge biopharmaceuticals, including viral vectors used in gene therapies.

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The Company estimated fair values at the acquisition date for the preliminary allocation of consideration to the net tangible and intangible assets acquired and liabilities assumed. During the measurement period ending no later than one year after the acquisition date, the Company will continue to obtain information to assist in finalizing the fair values of the net assets acquired, which may differ materially from these preliminary estimates. Amounts subject to finalization include working capital adjustments and income taxes. If any measurement period adjustment is material, the Company will record such adjustment, including any related impact on net income, in the reporting period in which the adjustment is determined. During the first quarter of fiscal 2020, the Company received an escrow refund of $7.6 million related to an assessment of various asset and liability balances and expenses as of the acquisition date. The adjustment is reflected in both goodwill and cash (part of other net assets). This adjustment had no impact on the consolidated statement of operations. There was no other change in these balances related to the acquisition noted during this period.

The Company accounted for the transaction using the acquisition method of accounting for business combinations, in accordance with ASC 805.

Novavax Transaction Overview

On July 31, 2019, Gene Therapy acquired from Novavax Inc. (“Novavax”) certain property, plant and equipment, rights to two facilities under leases in southern Maryland, certain raw material inventory, and the right to assume the employment of more than 100 Novavax employees located at those facilities in the areas of operations, quality, and product development, among other things. Gene Therapy made a cash payment of $18.3 million in connection with the acquisition. The Company considers the transaction to be a business combination under ASC 805, Business Combinations and accounted for it using the acquisition method of accounting. The Company estimated fair values at the acquisition date for the allocation of consideration to the acquired items.

The aggregate purchase consideration was funded with cash on hand. As a result of the preliminary fair value allocations, the Company recognized property, plant, and equipment of $15.6 million and $0.3 million for inventory. The remainder of the fair value, $2.4 million, was allocated to goodwill, primarily the value of the existing organized and trained work force.

The Novavax transaction expanded Gene Therapy’s early-development capabilities and supplemented Gene Therapy’s pool of experienced biologics operatives to support its growth.

Anagni Acquisition

Pursuant to a June 2019 agreement between Operating Company and a unit of Bristol-Myers Squibb Company (“BMS”), Operating Company acquired BMS’s oral solid, biologics, and sterile product manufacturing and packaging facility in Anagni, Italy on January 1, 2020. The Company paid to BMS $55.3 million in cash as part of the purchase consideration and as consideration for the provision of certain services to facilitate the transition from BMS to Company ownership. At the closing of this acquisition, BMS also entered into a five-year agreement for continuing supply by the Company of certain products formerly produced by BMS at the Anagni facility. Due to the variety of activities performed at Anagni, the results of the Anagni facility are allocated between the Oral and Specialty Delivery and Biologics segments.

The total cash consideration was allocated between the facility purchase and the transitional services arrangement, with $52.2 million assigned to the purchase consideration and the balance to transitional services. The Company funded the entire amount with cash on hand and has preliminarily allocated the purchase price among the acquired assets, recognizing property, plant, and equipment of $34.2 million, inventory of $7.0 million, and prepaid expenses and other of $12.4 million. The remainder of the value was allocated to deferred tax assets and certain employee-related liabilities assumed in the acquisition. The Company expects to finalize its allocation over the next several months, but, in any event, within one year from the closing.

MaSTherCell Global Inc.

Acquisition Transaction Overview

On February 10, 2020, the Company acquired 100% of the equity interest in Masthercell Global Inc. (“MaSTherCell”) for an aggregate purchase price of $323.3 million, subject to adjustment, which was funded with the net proceeds of the Company’s February 2020 offering (the “February 2020 Equity Offering”) of its common stock, par value $0.01 (“Common Stock”). See Note 13, Equity and Accumulated Other Comprehensive Income/(Loss). MaSTherCell is a CDMO focused on the development and manufacture of autologous and allogeneic cell therapies for third parties, as well as a variety of related analytical services.

MaSTherCell has a facility in Gosselies, Belgium providing clinical services, and construction is in progress there on a dedicated commercial-scale production and fill-finish facility, which is scheduled to open in the fall of 2021. Its U.S. facility in Houston, Texas, upon completion of validation activities, will focus on development-scale projects.

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The Company accounted for the MaSTherCell acquisition using the acquisition method in accordance with ASC 805, Business Combinations. The operating results of MaSTherCell have been included in the Company’s consolidated financial statements for the period following the acquisition date. For the period from the acquisition date through March 31, 2020, MaSTherCell’s net revenue was $5.1 million and pre-tax earnings were $0.5 million. Transaction costs incurred as a result of the acquisition of $3.1 million are included in selling, general, and administrative expenses for the period ended March 31, 2020.

Valuation Assumptions and Preliminary Purchase Price Allocation

The Company has preliminarily estimated fair values at the date of acquisition for the preliminary allocation of consideration to the net tangible and intangible assets acquired and liabilities assumed as part of the MaSTherCell acquisition. During the measurement period ending no later than one year after the acquisition date, the Company will continue to obtain information to assist in finalizing the fair values of the net assets acquired, which may differ materially from these preliminary estimates. Amounts subject to finalization include working capital and income taxes. If any measurement period adjustment is material, the Company will record such adjustment, including any related impact on net income, in the reporting period in which the adjustment is determined.

The preliminary purchase price allocation to assets acquired and liabilities assumed in the transaction is (in millions):

Property, plant, and equipment	$	25.5
Identifiable intangible assets	51.0
Other net assets	2.0
Deferred income tax liabilities	(13.4)
Total identifiable net assets	$	65.1
Goodwill	258.2
Total assets acquired and liabilities assumed	$	323.3

The carrying values of trade receivables, raw materials inventory, and trade payables, as well as certain other current and non-current assets and liabilities generally represented their fair values at the date of acquisition.

Property, plant, and equipment was valued using the cost approach, which is based on the current replacement or reproduction cost of the asset as new, less depreciation attributable to physical, functional, and economic factors. The Company then determined the remaining useful life based on the anticipated life of the asset and Company policy for similar assets.

Customer-relationship intangible assets of $46.3 million were valued using the multi-period, excess-earnings method, a method that values the intangible asset using the present value of the after-tax cash flows attributable to the intangible asset only. The significant assumptions used in developing the valuation included the estimated annual net cash flows (including application of an appropriate margin to forecasted revenue, selling and marketing costs, return on working capital, contributory asset charges, and other factors), the discount rate that appropriately reflects the risk inherent in each future cash flow stream, and an assessment of the asset’s life cycle, as well as other factors. The assumptions used in the financial forecasts were based on historical data, supplemented by current and anticipated growth rates, management plans, and market-comparable information. Fair-value determinations require considerable judgment and are sensitive to changes in underlying assumptions, among other things. Preliminary assumptions may change and may result in adjustments to the final valuation. The customer relationship intangible asset has a weighted average useful life of 13 years.

Goodwill has been allocated to our Biologics segment as shown in Note 4, Goodwill. Goodwill is mainly comprised of the following: growth from an expected increase in capacity utilization, potential new customers, and advanced cell therapy development and manufacturing capabilities.

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4. GOODWILL

The following table summarizes the changes between June 30, 2019 and March 31, 2020 in the carrying amount of goodwill in total and by reporting segment:

(Dollars in millions)	Softgel & Oral Technologies		Biologics		Oral & Specialty Delivery		Clinical Supply Services		Total
Balance at June 30, 2019	$	409.2	$	1,320.0	$	340.3	$	151.4	$	2,220.9
Additions	—		260.6		—		—		260.6
Reallocation	108.1		(124.3)		16.2		—		—
Other	(1.4)		(6.8)		1.1		—		(7.1)
Foreign currency translation adjustments	(13.0)		(1.3)		(6.0)		(4.8)		(25.1)
Balance at March 31, 2020	$	502.9	$	1,448.2	$	351.6	$	146.6	$	2,449.3

The addition to goodwill in the Biologics reporting segment relates to the Novavax and MaSTherCell transactions. See Note 3, Business Combinations. The reallocation of goodwill relates to the adjustments to the Company’s reporting segments, as a result of which certain assets moved from the Biologics reporting segment to the Oral and Specialty Delivery reporting segment, and other assets moved from the Oral and Specialty Delivery reporting segment to the Softgel and Oral Technologies reporting segment. The Company recorded no impairment charge to goodwill in the current period.

5. DEFINITE-LIVED LONG-LIVED ASSETS

The Company’s definite-lived long-lived assets include property, plant, and equipment as well as intangible assets with definite lives. Refer to Note 16, Supplemental Balance Sheet Information for details related to property, plant, and equipment.

The details of other intangibles, net as of March 31, 2020 and June 30, 2019 are as follows:

(Dollars in millions)	Weighted Average Life	Gross Carrying Value		Accumulated Amortization		Net Carrying Value
March 31, 2020
Amortized intangibles:
Core technology	19 years	$	133.1	$	(80.3)	$	52.8
Customer relationships	14 years	1,016.6		(228.3)		788.3
Product relationships	11 years	268.0		(212.9)		55.1
Other	4 years	14.5		(3.4)		11.1
Total intangible assets		$	1,432.2	$	(524.9)	$	907.3

(Dollars in millions)	Weighted Average Life	Gross Carrying Value		Accumulated Amortization		Net Carrying Value
June 30, 2019
Amortized intangibles:
Core technology	18 years	$	168.2	$	(105.6)	$	62.6
Customer relationships	14 years	981.1		(182.5)		798.6
Product relationships	11 years	275.5		(213.9)		61.6
Other	4 years	9.3		(1.3)		8.0
Total intangible assets		$	1,434.1	$	(503.3)	$	930.8

The decreases in the gross carrying value of core technology and product relationships as of March 31, 2020 compared to the prior-year period are associated with the sale of an intangible property licensing right and the disposal from the sale of the Company’s facility in Braeside, Australia.

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Amortization expense was $23.0 million and $66.3 million for the three and nine months ended March 31, 2020, respectively, and $31.4 million and $69.1 million for the three and nine months ended March 31, 2019, respectively. Future amortization expense for the next five fiscal years is estimated to be:

(Dollars in millions)	Remainder  Fiscal 2020		2021		2022		2023		2024		2025
Amortization expense	$	23.0	$	91.8	$	91.2	$	90.5	$	89.9	$	89.0

6. LONG-TERM OBLIGATIONS AND SHORT-TERM BORROWINGS

Long-term obligations and short-term borrowings consisted of the following at March 31, 2020 and June 30, 2019:

(Dollars in millions)	Maturity as of March 31, 2020	March 31, 2020		June 30, 2019
Senior secured credit facilities
Term loan facility U.S. dollar-denominated	May 2026	$	930.5	$	936.2
Term loan facility euro-denominated	May 2024	—		346.8
Revolving credit facility	May 2024	200.0		—
Euro-denominated 4.75% Senior Notes due 2024	December 2024	—		428.3
U.S. dollar-denominated 4.875% Senior Notes due 2026	January 2026	445.2		444.6
U.S. dollar-denominated 5.00% Senior Notes due 2027	July 2027	492.8		492.1
Euro-denominated 2.375% Senior Notes due 2028	March 2028	894.1		—
Deferred purchase consideration	October 2021	96.7		143.9
Capital lease obligations	2020 to 2044	137.1		167.3
Other obligations	2020 to 2024	2.3		0.1
Total		$	3,198.7	$	2,959.3
Less: current portion of long-term obligations and other short-term borrowings		271.8		76.5
Long-term obligations, less current portion		$	2,926.9	$	2,882.8

Euro-denominated 2.375% Senior Notes due 2028

In March 2020, Operating Company completed a private offering of €825.0 million aggregate principal amount of 2.375% Senior Notes due 2028 (the "Euro 2028 Notes"). The Euro 2028 Notes are fully and unconditionally guaranteed, jointly and severally, by all of the wholly owned U.S. subsidiaries of Operating Company that guarantee its senior secured credit facilities. The Euro 2028 Notes were offered in the U.S. to qualified institutional buyers in reliance on Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”) and outside the U.S. only to non-U.S. investors pursuant to Regulation S under the Securities Act. The Euro 2028 Notes will mature on March 1, 2028, bear interest at the rate of 2.375% per annum and are payable semi-annually in arrears on March 1 and September 1 of each year. The proceeds of the Euro 2028 Notes after payment of the offering fees and expenses were used to repay in full the outstanding borrowings under Operating Company's euro-denominated term loans under its senior secured credit agreement that mature in May 2024 and euro-denominated 4.75% Senior Notes that mature in December 2024, plus any accrued and unpaid interest thereon, with the remainder available for general corporate purposes.

Previously, the Company disclosed that the maturity date set forth in the table above for its U.S. dollar-denominated term loan was earlier than stated if any of its euro-denominated 4.75% Senior Notes was still outstanding at its maturity. Having paid off that euro debt, the exception no longer applies.

Revolving Credit Facility

The Company borrowed $200.0 million in March 2020 under Operating Company's revolving credit facility prophylactically in response to unsettled market conditions resulting from the COVID-19 pandemic to increase liquidity for general corporate purposes. Such borrowing remained outstanding as of March 31, 2020 and bore interest at the rate of 2.93% during the portion of the three months ended March 31, 2020 when such borrowing existed.

The Company also incurred interest cost of $0.4 million as a result of borrowing $100.0 million under Operating Company's revolving credit facility in January 2020, which was repaid in February 2020 from a portion of the proceeds of the

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February 2020 Equity Offering. A portion of the proceeds of the January 2020 borrowing were used to pay the cash acquisition cost of land and buildings previously leased by Gene Therapy.

Deferred Purchase Consideration

In connection with the acquisition of Catalent Indiana, LLC in October 2017, $200.0 million of the $950.0 million aggregate nominal purchase price is payable in $50.0 million installments, on each of the first four anniversaries of the closing date. The Company made installment payments in October 2018 and October 2019. The balance of the deferred purchase consideration was recorded at fair value as of the acquisition date, with the difference between the remaining nominal amount and the fair value treated as imputed interest.

Fair Value of Debt Instruments

The estimated fair values of the Company's senior secured credit facilities and other senior indebtedness are classified as Level 2 in the fair value hierarchy and are calculated by using discounted cash flow models with the market interest rate as a significant input. The carrying amounts and the estimated fair values of financial instruments as of March 31, 2020 and June 30, 2019 are as follows:

		March 31, 2020				June 30, 2019
(Dollars in millions)	Fair Value Measurement	Carrying Value		Estimated Fair Value		Carrying Value		Estimated Fair Value
Euro-denominated 4.75% senior notes due 2024	Level 2	$	—	$	—	$	428.3	$	454.2
U.S. dollar-denominated 4.875% senior notes due 2026	Level 2	445.2		438.7		444.6		457.0
U.S. dollar-denominated 5.00% senior notes due 2027	Level 2	492.8		482.7		492.1		509.0
Euro-denominated 2.375% senior notes due 2028	Level 2	894.1		789.2		—		—
Senior secured credit facilities & other	Level 2	1,366.6		1,334.7		1,594.3		1,526.0
Total		$	3,198.7	$	3,045.3	$	2,959.3	$	2,946.2

7. EARNINGS PER SHARE

The Company computes earnings per share (“EPS”) of the Company's Common Stock using the two-class method required due to the participating nature of the Series A Preferred Stock (as defined and discussed in Note 14, Redeemable Preferred Stock—Series A Preferred). Diluted net income per share is computed using the weighted average number of shares of Common Stock outstanding plus the weighted average number of shares of Common Stock that would be issued assuming exercise or conversion of all potentially dilutive instruments. Dilutive securities having an anti-dilutive effect on diluted net income per share are excluded from the calculation. The dilutive effect of the securities that are issuable under the Company’s equity incentive plans are reflected in diluted earnings per share by application of the treasury stock method. The reconciliations between basic and diluted earnings per share attributable to Catalent common shareholders for the three and nine months ended March 31, 2020 and 2019, respectively, are as follows (in millions, except share and per share data):

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	Three Months Ended   March 31,				Nine Months Ended   March 31,
	2020		2019		2020		2019
Net earnings	$	20.9	$	31.7	$	66.5	$	66.3
Less: Net earnings attributable to preferred shareholders	(9.1)		—		(27.8)		—
Net earnings attributable to common shareholders	$	11.8	$	31.7	$	38.7	$	66.3
Weighted average shares outstanding	151,267,795		145,145,310		147,647,548		143,896,635
Weighted average dilutive securities issuable-stock plans	1,787,847		1,612,961		1,843,559		1,696,575
Total weighted average diluted shares outstanding	153,055,642		146,758,271		149,491,107		145,593,210
Earnings per share:
Basic	$	0.08	$	0.22	$	0.26	$	0.46
Diluted	$	0.08	$	0.22	$	0.26	$	0.46

The computations of diluted earnings per share for the three and nine months ended March 31, 2020 excludes the effect of potential common shares issuable under employee-held stock options and restricted stock units of approximately 0.5 million and 0.6 million, respectively, because they are anti-dilutive. The computations of diluted earnings per share for the three and nine months ended March 31, 2019 excludes the effect of potential common shares issuable under employee-held stock options and restricted stock units of approximately 1.1 million and 1.0 million, respectively, because they are anti-dilutive. Further, the computation of diluted earnings per share for the three and nine months ended March 31, 2020, respectively, excludes the effect of approximately 13.1 million “if-converted” shares of Common Stock potentially issuable on the conversion of Series A Preferred Stock, as those shares would be anti-dilutive.

8. OTHER (INCOME)/EXPENSE, NET

The components of other (income)/expense, net for the three and nine months ended March 31, 2020 and 2019 are as follows:

	Three Months Ended   March 31,				Nine Months Ended  March 31,
(Dollars in millions)	2020		2019		2020		2019
Other (income)/expense, net
Debt refinancing costs (1)	$	16.0	$	—	$	16.1	$	4.2
Foreign currency (gains) and losses (2)	(5.3)		(3.2)		(1.7)		(0.8)
Other (3)	26.0		—		22.8		0.5
Total other (income)/expense, net	$	36.7	$	(3.2)	$	37.2	$	3.9

(1) The expense in the nine months ended March 31, 2019 includes a write-off of $4.2 million of previously capitalized financing charges related to the Company's U.S. dollar-denominated term loan under its senior secured credit facility. The expense in the three months ended March 31, 2020 includes (a) a write-off of $6.0 million of previously capitalized financing charges related to the Company's recently repaid euro-denominated term loan under its senior secured credit facilities and the Company's recently redeemed euro-denominated senior notes and (b) a $10.0 million premium on early redemption of the euro notes.

(2) Foreign currency remeasurement (gains) and losses include both cash and non-cash transactions.

(3) Included within Other for the three and nine months ended March 31, 2020 are unrealized losses of $26.3 million and $24.9 million, respectively, related to the fair value of the derivative liability associated with the Series A Preferred Stock.

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9.  RESTRUCTURING AND OTHER COSTS

From time to time, the Company has implemented plans to restructure certain operations, both domestically and internationally. The restructuring plans focused on various aspects of operations, including closing and consolidating certain manufacturing operations, rationalizing headcount and aligning operations in a strategic and more cost-efficient structure. In addition, the Company may incur restructuring charges in the future in cases where a material change in the scope of operation with its business occurs. Employee-related costs consist primarily of severance costs and also include outplacement services provided to employees who have been involuntarily terminated and duplicate payroll costs during transition periods. Facility exit and other costs consist of accelerated depreciation, equipment relocation costs and costs associated with planned facility expansions and closures to streamline Company operations. The restructuring costs for the three and nine months ended March 31, 2020 were $1.3 million and $2.5 million, respectively, and for the three and nine months ended March 31, 2019 were $3.1 million and $12.9 million, respectively.

10. DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

The Company is exposed to fluctuations in the applicable exchange rate on its investments in operations outside the U.S. While the Company does not actively hedge against changes in foreign currency, the Company has mitigated its exposure from its investments in its European operations by denominating a portion of its debt in euros. At March 31, 2020, the Company had euro-denominated debt outstanding of $894.1 million that is designated and qualifies as a hedge of a net investment in foreign operations. For non-derivatives designated and qualifying as net investment hedges, the translation gains or losses are reported in accumulated other comprehensive income/(loss) as part of the cumulative translation adjustment. The non-hedge portions of the euro-denominated debt translation gains or losses are reported in the consolidated statement of operations. The following table includes net investment hedge activity during the three and nine months ended March 31, 2020 and 2019.

	Three Months Ended   March 31,				Nine Months Ended   March 31,
(Dollars in millions)	2020		2019		2020		2019
Unrealized foreign exchange gain/(loss) within other      comprehensive income	$	3.7	$	5.9	$	17.5	$	17.3
Unrealized foreign exchange gain/(loss) within statement      of operations	$	1.9	$	2.9	$	7.7	$	9.8

The net accumulated gain of the instrument designated as a hedge as of March 31, 2020 within other comprehensive income/(loss) was approximately $77.3 million. Amounts are reclassified out of accumulated other comprehensive income/(loss) into earnings when the entity to which the gains and losses relate is either sold or substantially liquidated.

Refer to Note 19, Subsequent Events for details related to an interest rate swap entered into in April 2020.

2019 Derivative Liability

As discussed in Note 14, Redeemable Preferred Stock—Series A Preferred, in May 2019, the Company issued shares of Series A Preferred Stock in exchange for net proceeds of $646.3 million after taking into account the $3.7 million issuance cost.

The dividend rate used to determine the amount of the quarterly dividend payable on shares of the Series A Preferred Stock is subject to adjustment so as to provide holders of shares of Series A Preferred Stock with certain protections against a decline in the trading price of shares of Common Stock. The Company determined that this feature should be accounted for as a derivative liability, since the feature fluctuates inversely to changes in the trading price and is also linked to the performance of the S&P 500 stock index. Accordingly, the Company bifurcated the adjustable dividend feature from the remainder of the Series A Preferred Stock and accounted for this feature as a derivative liability at fair value. The Company will recognize changes in the fair value of the derivative liability in the consolidated statements of operations for each reporting period. The fair value was determined using an option pricing methodology, specifically both a Monte Carlo simulation and a binomial lattice model. The methodology incorporates the terms and conditions of the preferred stock arrangement, historical stock price volatility, the risk-free interest rate, a credit spread based on the yield indexes of high-yield bonds, and the trading price of shares of the Common Stock. The calculation of the estimated fair value of the derivative liability is highly sensitive to changes in unobservable inputs, such as the expected volatility and the Company's specific credit spread.

The Company recorded a loss of $24.9 million on the change in the estimated fair value of the derivative liability from July 1, 2019 through March 31, 2020, primarily related to the volatility in the risk-free interest rate used to estimate the fair value, which is reflected as a non-operating expense in the consolidated statements of operations. The fair value of the derivative liability as of March 31, 2020 was $51.7 million.

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The fair value is classified as Level 3 in the fair value hierarchy due to the significant management judgment required for the assumptions underlying the calculation of value. The following table sets forth a summary of changes in the estimated fair value of the derivative liability:

(Dollars in millions)	Fair Value Measurements of Series A Preferred Stock Derivative Liability Using Significant Unobservable Inputs (Level 3)
Balance at July 1, 2019	$	26.8
Change in estimated fair value of Series A Preferred Stock derivative liability	24.9
Balance at March 31, 2020	$	51.7

11. INCOME TAXES

The Company accounts for income taxes in accordance with ASC 740, Income Taxes. Generally, fluctuations in the effective tax rate are primarily due to changes in U.S. and non-U.S. pretax income resulting from the Company’s business mix and changes in the tax impact of special items and other discrete tax items, which may have unique tax implications depending on the nature of the item. Such discrete items include, but are not limited to, changes in foreign statutory tax rates, the amortization of certain assets, the tax impact of changes in the Company's unrecognized tax benefit reserves and the tax impact of certain equity compensation.

In the normal course of business, the Company is subject to examination by taxing authorities around the world, including such major jurisdictions as the United States, Germany, France, and the United Kingdom. The Company is no longer subject to examinations by the relevant tax authorities for years prior to fiscal year 2009.

ASC 740 includes guidance on the accounting for uncertainty in income taxes recognized in the financial statements. This standard provides that a tax benefit from an uncertain tax position may be recognized when it is more likely than not that the position will be sustained upon examination, including resolution of any related appeal or litigation process, based on the technical merits. As of March 31, 2020 and June 30, 2019, the Company had an aggregate of $4.7 million and $5.2 million, respectively, of uncertain tax positions (including accrued interest and penalties). As of these dates, $3.6 million and $3.8 million, respectively, represent the amount of unrecognized tax benefits, which, if recognized, would favorably affect the effective income tax rate. Interest and penalties related to uncertain tax positions are recognized as a component of income tax expense.

The Company recorded a provision for income taxes for the three months ended March 31, 2020 of $8.8 million relative to earnings from operations before income taxes of $29.7 million. The Company recorded a provision for income taxes for the three months ended March 31, 2019 of $10.9 million relative to earnings from operations before income taxes of $42.6 million. The income tax provision for the current period is not comparable to the same period of the prior year due to changes in pretax income over many jurisdictions and the impact of discrete items. Generally, fluctuations in the effective tax rate are primarily due to changes in our geographic pretax income resulting from our business mix and changes in the tax impact of permanent differences, special items, certain equity related compensation and other discrete tax items, which may have unique tax implications depending on the nature of the item.

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12. EMPLOYEE RETIREMENT BENEFIT PLANS

Components of the Company’s net periodic benefit costs are as follows:

	Three Months Ended   March 31,				Nine Months Ended   March 31,
(Dollars in millions)	2020		2019		2020		2019
Components of net periodic benefit cost:
Selling, general, and administrative expenses:
Service cost	$	0.9	$	0.9	$	2.3	$	2.7
Other (income)/expense, net:
Interest cost	0.7		1.9		4.2		5.7
Expected return on plan assets	(2.5)		(2.7)		(7.8)		(7.9)
Amortization (1)	2.6		0.6		4.1		1.8
Net amount recognized	$	1.7	$	0.7	$	2.8	$	2.3

(1)   Amount represents the amortization of unrecognized actuarial gains/(losses).

As previously disclosed, the Company notified the trustees of a multi-employer pension plan of its withdrawal from participation in such plan in fiscal 2012. The actuarial review process administered by the plan trustees ended in fiscal 2015. The liability reported reflects the present value of the Company's expected future long-term obligations. The estimated discounted value of the projected contributions related to such plans was $38.7 million and $38.8 million as of March 31, 2020 and June 30, 2019, respectively, and is included within pension liability on the consolidated balance sheets. The annual cash impact associated with the Company's obligations in such plan is approximately $1.7 million per year.

13. EQUITY AND ACCUMULATED OTHER COMPREHENSIVE INCOME/(LOSS)

Recent Public Offering of Common Stock

On February 6, 2020, the Company completed the February 2020 Equity Offering, in which the Company sold 8.4 million shares of Common Stock at a price of $58.58 per share, net of underwriting discounts and commissions. The Company obtained total net proceeds from the February 2020 Equity Offering of $494.2 million. The net proceeds of the February 2020 Equity Offering were used to repay $100.0 million of borrowings earlier in the quarter under Operating Company's revolving credit facility and the consideration for the MaSTherCell acquisition due at its closing, with the remainder available for general corporate purpose.

Outstanding Stock

Shares of Common Stock outstanding include shares of unvested restricted stock. Unvested restricted stock included in reportable shares outstanding was 0.5 million shares as of March 31, 2020. Shares of unvested restricted stock are excluded from the calculation of basic weighted average shares outstanding, but their dilutive impact is added back in the calculation of diluted weighted average shares outstanding, except when the effect would be anti-dilutive.

The Company has 650,000 shares of its preferred stock outstanding. See Note 14, Redeemable Preferred Stock—Series A Preferred.

Stock Repurchase Program

On October 29, 2015, the Company’s Board of Directors authorized a share repurchase program to use up to $100.0 million to repurchase shares of outstanding Common Stock. Under the program, the Company is authorized to repurchase shares through open market purchases, privately negotiated transactions, or otherwise as permitted by applicable federal securities laws. There has been no purchase pursuant to this program as of March 31, 2020.

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Accumulated Other Comprehensive Income/(loss)

The components of the changes in the cumulative translation adjustment, minimum pension liability, and available for sale investment for the three and nine months ended March 31, 2020 and 2019 are presented below.

	Three Months Ended   March 31,				Nine Months Ended   March 31,
(Dollars in millions)	2020		2019		2020		2019
Foreign currency translation adjustments:
Net investment hedge	$	3.7	$	5.9	$	17.5	$	17.3
Long-term intercompany loans	(26.9)		17.1		(15.3)		3.0
Translation adjustments	(20.5)		0.9		(42.5)		(20.9)
Total foreign currency translation adjustment, pretax	(43.7)		23.9		(40.3)		(0.6)
Tax expense/(benefit)	(0.6)		2.4		2.5		4.3
Total foreign currency translation adjustment, net of tax	$	(43.1)	$	21.5	$	(42.8)	$	(4.9)
Net change in minimum pension liability
Net loss recognized during the period	$	1.2	$	0.6	$	4.1	$	1.9
Total pension liability, pretax	1.2		0.6		4.1		1.9
Tax expense/(benefit)	1.1		0.2		1.0		0.5
Net change in minimum pension liability, net of tax	$	0.1	$	0.4	$	3.1	$	1.4

For the three months ended March 31, 2020, the changes in accumulated other comprehensive income/(loss), net of tax by component are as follows:

(Dollars in millions)	Foreign Exchange Translation Adjustments		Pension and Liability Adjustments		Other		Total
Balance at December 31, 2019	$	(303.4)	$	(46.1)	$	(1.1)	$	(350.6)
Other comprehensive income before reclassifications	(43.1)		—		—		(43.1)
Amounts reclassified from accumulated other comprehensive income	—		0.1		—		0.1
Net current period other comprehensive income	(43.1)		0.1		—		(43.0)
Balance at March 31, 2020	$	(346.5)	$	(46.0)	$	(1.1)	$	(393.6)

For the nine months ended March 31, 2020, the changes in accumulated other comprehensive income/(loss), net of tax by component are as follows:

(Dollars in millions)	Foreign Exchange Translation Adjustments		Pension and Liability Adjustments		Other		Total
Balance at June 30, 2019	$	(303.7)	$	(49.1)	$	(1.1)	$	(353.9)
Other comprehensive income before reclassifications	(42.8)		—		—		(42.8)
Amounts reclassified from accumulated other comprehensive income	—		3.1		—		3.1
Net current period other comprehensive income	(42.8)		3.1		—		(39.7)
Balance at March 31, 2020	$	(346.5)	$	(46.0)	$	(1.1)	$	(393.6)

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14.  REDEEMABLE PREFERRED STOCK — SERIES A PREFERRED

During May 2019, the Company designated 1,000,000 shares of its preferred stock, par value $0.01, as its “Series A Convertible Preferred Stock” (the “Series A Preferred Stock”), pursuant to a certificate of designation of preferences, rights, and limitations (as amended, the “Certificate of Designation”) filed with the Delaware Secretary of State, and issued and sold 650,000 shares of the Series A Preferred Stock for an aggregate purchase price of $650.0 million, to affiliates of Leonard Green & Partners, L.P. (the “Series A Investors”), each share having an initial stated value of $1,000 (as such value may be adjusted in accordance with the terms of the Certificate of Designation, the “Stated Value”). The Series A Preferred Stock ranks senior to the Company’s Common Stock with respect to dividend rights and rights upon the voluntary or involuntary liquidation, dissolution, or winding up of the affairs of the Company.

Proceeds from the offering of the Series A Preferred Stock, net of stock issuance costs, were $646.3 million, which were used to fund a portion of the consideration for the Gene Therapy acquisition due at its closing. Of the net proceeds, $39.7 million was allocated to the dividend adjustment feature at its issuance and separately accounted for as a derivative liability, as disclosed in Note 10, Derivative Instruments and Hedging Activities; thus, the proceeds of the issuance were allocated as follows:

(Dollars in millions)
Issuance of Series A Preferred Stock	$	650.0
Stock issuance costs	(3.7)
Net of stock issuance costs	646.3
Derivative liability (Portion of preferred stock allocated to dividend adjustment at inception - see Note 10)	(39.7)
Net proceeds from Series A Preferred Stock issuance	$	606.6

Any change in the fair value of derivative liability is recorded as non-operating expenses in the consolidated statement of operations. See Note 10, Derivative Instruments and Hedging Activities for detail concerning the change in fair value during the three months ended March 31, 2020.

15. LEASES

The Company leases certain manufacturing and office facilities, land, vehicles, and equipment. The terms of these leases vary widely, although most have terms between 3 and 10 years.

In accordance with ASC 842, Leases, the Company recognizes a “right-of-use” asset and related lease liability at the commencement date of each lease based on the present value of the fixed lease payments over the expected lease term. The lease term for this purpose will include any renewal period where the Company determines that it is reasonably certain that it will exercise the option to renew. While certain leases also permit Catalent to terminate the lease in advance of the nominal term upon payment of an associated penalty, the Company generally does not take into account potential early termination dates in its determination of the lease term as it is reasonably certain not to exercise an early-termination option as of the lease commencement date.

The Company uses its incremental borrowing rate, which represents the interest rate the Company would expect to pay on a collateralized basis to borrow an amount equal to the lease payments under similar terms, in order to calculate the present value of a lease, since the implicit discount rate for its leases is not readily determinable.

Fixed lease payments are recognized on straight-line basis over the lease term, while variable payments are recognized in the period incurred. As permitted by ASC 842, the Company has elected not to separate those components of a lease agreement not related to the leasing of an asset from those components that are related.

The Company does not record leases with an initial lease term of 12 months or less on its consolidated balance sheets. The Company recognizes lease expense for these short-term leases on a straight-line basis over the lease term.

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Supplemental information concerning the leases recorded in the Company's unaudited consolidated balance sheet as of March 31, 2020 is detailed in the following table:

(Dollars in millions)	Line item in the consolidated balance sheet	Balance at March 31, 2020
Right-of-use assets:
Finance leases	Property, plant, and equipment, net	$	100.6
Operating leases	Other assets	90.7
Current lease liabilities:
Finance leases	Current portion of long-term obligations and other short-term borrowings	12.2
Operating leases	Other accrued liabilities	15.0
Non-current lease liabilities:
Finance leases	Long-term obligations, less current portion	124.9
Operating leases	Other liabilities	73.5

The components of the net lease costs for the three and nine months ended March 31, 2020 reflected in the Company's unaudited consolidated statement of operations were as follows:

(Dollars in millions)	Three months ended March 31, 2020		Nine Months ended March 31, 2020
Finance lease costs:
Amortization of right-of-use assets	$	2.9	$	8.6
Interest on lease liabilities	2.7		9.1
Total	5.6		17.7
Operating lease costs	5.3		14.2
Variable lease costs	1.3		5.0
Total lease costs	$	12.2	$	36.9

The weighted average remaining lease term and weighted average discount rate related to the Company's right-of-use assets and lease liabilities as of March 31, 2020 are as follows:

Weighted average remaining lease term (years):
Finance leases	13.4
Operating leases	8.9
Weighted average discount rate:
Finance leases	8.6	%
Operating leases	4.5	%

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Supplemental information concerning the cash-flow impact arising from the Company's leases for the nine months ended March 31, 2020 recorded in the Company's unaudited consolidated statement of cash flows is detailed in the following table (in millions):

	Nine Months ended March 31, 2020
Cash paid for amounts included in lease liabilities:
Financing cash flows used for finance leases	$	44.8
Operating cash flows used for finance leases	9.1
Operating cash flows used for operating leases	9.6
Non-cash transactions:
Right-of-use assets obtained in exchange for new finance lease liabilities	11.9
Right-of-use assets obtained in exchange for new operating lease liabilities	53.2

As of March 31, 2020, the Company expects that its future minimum lease payments will become due and payable as follows:

(Dollars in millions)	Finance Leases		Operating Leases		Total
Remainder of fiscal 2020	$	5.9	$	4.4	$	10.3
2021	21.6		17.5		39.1
2022	19.3		16.6		35.9
2023	18.0		16.1		34.1
2024	17.0		12.1		29.1
Thereafter	142.4		43.5		185.9
Total minimum lease payments	224.2		110.2		334.4
Less: interest	87.1		21.7		108.8
Total lease liabilities	$	137.1	$	88.5	$	225.6

16. COMMITMENTS AND CONTINGENCIES

From time to time, the Company may be involved in legal proceedings arising in the ordinary course of business, including, without limitation, inquiries and claims concerning environmental contamination as well as litigation and allegations in connection with acquisitions, product liability, manufacturing or packaging defects, and claims for reimbursement for the cost of lost or damaged active pharmaceutical ingredients, the cost of any of which could be significant. The Company intends to vigorously defend itself against any such litigation and does not currently believe that the outcome of any such litigation will have a material adverse effect on the Company’s consolidated financial statements. In addition, the healthcare industry is highly regulated and government agencies continue to scrutinize certain practices affecting government programs and otherwise.

From time to time, the Company receives subpoenas or requests for information relating to the business practices and activities of customers or suppliers from various governmental agencies or private parties, including from state attorneys general, the U.S. Department of Justice, and private parties engaged in patent infringement, antitrust, tort, and other litigation. The Company generally responds to such subpoenas and requests in a timely and thorough manner, which responses sometimes require considerable time and effort and can result in considerable costs being incurred. The Company expects to incur costs in future periods in connection with future requests.

17. SEGMENT INFORMATION

As disclosed in Note 1, Basis of Presentation and Summary of Significant Accounting Policies, the Company now conducts its business within the following operating segments: Softgel and Oral Technologies, Biologics, Oral and Specialty Delivery, and Clinical Supply Services. The Company evaluates the performance of its segments based on segment earnings before other (expense)/income, impairments, restructuring costs, interest expense, income tax expense/(benefit), and depreciation and amortization (“Segment EBITDA”). “EBITDA from operations” is consolidated earnings from operations

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before interest expense, income tax expense/(benefit), and depreciation and amortization. Segment EBITDA and EBITDA from operations are not defined in GAAP and may not be comparable to similarly titled measures used by other companies.

The following tables include net revenue and Segment EBITDA for each of the Company's current reporting segments during the three and nine months ended March 31, 2020 and 2019:

(Dollars in millions)	Three Months Ended   March 31,				Nine Months Ended   March 31,
	2020		2019		2020		2019
Net revenue:
Softgel and Oral Technologies	$	242.3	$	254.0	$	770.8	$	748.5
Biologics	250.0		133.7		663.8		395.8
Oral and Specialty Delivery	181.4		153.8		457.2		419.1
Clinical Supply Services	88.9		77.8		261.4		236.3
Inter-segment revenue elimination	(2.0)		(1.8)		(6.5)		(7.4)
Net revenue	$	760.6	$	617.5	$	2,146.7	$	1,792.3

(Dollars in millions)	Three Months Ended   March 31,				Nine Months Ended   March 31,
	2020		2019		2020		2019
Segment EBITDA reconciled to net earnings:
Softgel and Oral Technologies	$	60.1	$	56.3	$	171.0	$	152.3
Biologics	51.9		35.8		150.7		101.9
Oral and Specialty Delivery	56.2		49.0		117.0		113.9
Clinical Supply Services	24.6		20.3		70.2		61.5
Sub-Total	$	192.8	$	161.4	$	508.9	$	429.6
Reconciling items to net earnings
Unallocated costs (1)	(63.9)		(26.0)		(134.6)		(95.2)
Depreciation and amortization	(64.8)		(66.4)		(187.3)		(173.9)
Interest expense, net	(34.4)		(26.4)		(105.6)		(80.0)
Income tax expense	(8.8)		(10.9)		$	(14.9)	(14.2)
Net earnings	$	20.9	$	31.7	$	66.5	$	66.3

(1) Unallocated costs include restructuring and special items, equity-based compensation, impairment charges, certain other corporate directed costs, and other costs that are not allocated to the segments as follows:

	Three Months Ended   March 31,				Nine Months Ended   March 31,
(Dollars in millions)	2020		2019		2020		2019
Impairment charges and gain/(loss) on sale of assets	$	(0.6)	$	0.1	$	(2.1)	$	(2.7)
Stock-based compensation	(8.6)		(6.6)		(35.5)		(24.1)
Restructuring and other special items (a)	(8.9)		(16.1)		(28.6)		(35.2)
Other income/(expense), net (b)	(36.7)		3.2		(37.2)		(3.9)
Unallocated corporate costs, net	(9.1)		(6.6)		(31.2)		(29.3)
Total unallocated costs	$	(63.9)	$	(26.0)	$	(134.6)	$	(95.2)

(a) Restructuring and other special items during the nine months ended March 31, 2020 include transaction and integration costs associated with the Company’s gene and cell therapy acquisitions, the disposal of one of its sites in Australia, and other restructuring initiatives across the Company's network of sites. Restructuring and other special items during the nine months ended March 31, 2019 include transaction and integration costs associated with the acquisitions of Catalent Indiana LLC and Juniper Pharmaceuticals, Inc.

(b) Refer to Note 8, Other (income)/expense, net, for details of financing charges and foreign currency translation adjustments recorded within other income/(expense), net.

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The following table includes total assets for each segment, as well as reconciling items necessary to total the amounts reported in the consolidated financial statements.

(Dollars in millions)	March 31, 2020		June 30, 2019
Assets
Softgel and Oral Technologies	$	1,453.7	$	1,586.5
Biologics	3,500.7		2,825.7
Oral and Specialty Delivery	1,186.4		1,098.7
Clinical Supply Services	455.1		463.2
Corporate and eliminations	483.7		209.9
Total assets	$	7,079.6	$	6,184.0

18. SUPPLEMENTAL BALANCE SHEET INFORMATION

Supplemental balance sheet information at March 31, 2020 and June 30, 2019 is detailed in the following tables.

Inventories

Work-in-process and inventories include raw materials, labor, and overhead. Total inventories consist of the following:

(Dollars in millions)	March 31, 2020		June 30, 2019
Raw materials and supplies	$	213.7	$	161.6
Work-in-process	108.2		115.0
Total inventories, gross	321.9		276.6
Inventory cost adjustment	(24.7)		(19.4)
Inventories	$	297.2	$	257.2

Prepaid expenses and other

Prepaid expenses and other consist of the following:

(Dollars in millions)	March 31, 2020		June 30, 2019
Prepaid expenses	$	33.1	$	18.7
Contract assets	35.6		23.3
Spare parts supplies	23.1		8.1
Prepaid income tax	11.0		10.0
Non-U.S. value-added tax	12.0		16.4
Other current assets	27.0		23.6
Prepaid expenses and other	$	141.8	$	100.1

Property, plant, and equipment, net

Property, plant, and equipment, net consist of the following:

(Dollars in millions)	March 31, 2020		June 30, 2019
Land, buildings, and improvements	$	1,174.6	$	1,049.4
Machinery, equipment, and capitalized software	1,143.5		1,104.9
Furniture and fixtures	19.2		16.9
Construction in progress	426.9		278.9
Property, plant, and equipment, at cost	2,764.2		2,450.1
Accumulated depreciation	(994.7)		(913.4)
Property, plant, and equipment, net	$	1,769.5	$	1,536.7

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Depreciation expense was $41.8 million and $121.0 million for the three and nine months ended March 31, 2020, respectively, and $35.0 million and $104.8 million for the three and nine months ended March 31, 2019, respectively. Depreciation expense includes amortization of assets related to finance leases. The Company charges repairs and maintenance costs to expense as incurred. The amount of capitalized interest was immaterial for all periods presented.

Other accrued liabilities

Other accrued liabilities consist of the following:

(Dollars in millions)	March 31, 2020		June 30, 2019
Accrued employee-related expenses	$	119.2	$	103.9
Restructuring accrual	3.8		8.2
Accrued interest	12.1		11.7
Contract liability	160.2		155.2
Accrued income tax	—		8.5
Other accrued liabilities and expenses	73.8		50.9
Other accrued liabilities	$	369.1	$	338.4

19.  SUBSEQUENT EVENTS

In April 2020, the Company entered into an interest-rate swap agreement with Bank of America N.A. as a hedge against the economic effect of a portion of the variable interest obligation associated with its U.S dollar-denominated term loans under its senior secured credit facilities, so that the interest payable on that portion of the debt becomes fixed at a certain rate, thereby reducing the impact of future interest rate changes on future interest expense. The applicable rate for the U.S. dollar-denominated term loan is LIBOR (subject to a floor of 1.00%) plus 2.25%; however, as a result of entering into the interest-rate swap agreement, the floating portion of the applicable rate on $500.0 million of the term loan is now effectively fixed at 1.26%, for a total fixed rate of 3.51%.

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ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The Company

We are the leading global provider of advanced delivery technologies, development, and manufacturing solutions for drugs, biologics, gene and cell therapies, and consumer health products. Our oral, injectable, gene and cell therapy, and respiratory delivery technologies address the full diversity of the pharmaceutical industry, including small molecules, protein and gene and cell therapy biologics, and consumer health products. Through our extensive capabilities and deep expertise in product development, we help our customers take products to market faster, including nearly half of new drug products approved by the U.S. Food and Drug Administration in the last decade. Our advanced delivery technology platforms, which include those in our Softgel and Oral Technologies, Biologics, and Oral and Specialty Delivery segments, our proven formulation, manufacturing, and regulatory expertise, and our broad and deep intellectual property enable our customers to develop more products and better treatments for patients and consumers. Across both development and delivery, our commitment to reliably supply our customers’ and their patients' needs is the foundation for the value we provide; annually, we produce approximately 73 billion doses for nearly 7,000 customer products or approximately 1 in every 20 doses of such product taken each year by patients and consumers around the world. We believe that, through our investments in growth-enabling capacity and capabilities, our ongoing focus on operational and quality excellence, the sales of existing customer products, the introduction of new customer products, our innovation activities and patents, and our entry into new markets, we will continue to benefit from attractive and differentiated margins and realize the growth potential from these areas.

The COVID-19 Pandemic

The recent novel coronavirus outbreak (COVID-19) has spread across the globe and has been declared a “Public Health Emergency of International Concern” by the World Health Organization. COVID-19 has spread to many of the countries in which we, our customers, our suppliers, and our other business partners conduct business. Governments in affected regions have implemented, and may continue to implement, safety precautions, including quarantines, travel restrictions, business closures, cancellations of public gatherings, and other measures they deem necessary. Like many other organizations and individuals, the Company and our employees are taking additional steps to avoid or reduce infection, including limiting travel and implementing work-from-home policies for most non-production employees. These measures are disrupting normal business operations both in and outside of affected areas and have had significant negative impacts on businesses and financial markets worldwide. The extent of the impact of the COVID-19 pandemic on our operational and financial performance will depend on certain developments, including the duration and spread of the outbreak and its effects on our customers and suppliers, which are uncertain and cannot be fully predicted at this time. We will continue to actively monitor the situation and may take further actions that alter our business operations as may be required by national, state, or local authorities, or that we determine are in the best interests of our employees, customers, shareholders, and other stakeholders. At this point, the extent to which the COVID-19 pandemic may affect our future financial condition or results of operations is uncertain. While the COVID-19 pandemic has not had a material adverse impact on our results to-date, we have observed some increases in customer delays and cancellations, absenteeism of production employees in our facilities in certain affected regions, and disruptions in clinical trials supported by our Clinical Supply Services segment, with a small percentage of our customers expecting a reduction in demand and a larger percentage expecting an increase in demand, in each case due to circumstances relating to the COVID-19 pandemic. We have also seen revenue increases and the potential for further revenue increases related to projects seeking to address the COVID-19 pandemic or its effects. Future financial periods may reflect adjustments to the results of our operations resulting from the COVID-19 pandemic.

Critical Accounting Policies and Estimates

We prepare our financial statements in accordance with generally accepted accounting principles in the United States (“GAAP”). Management made certain estimates and assumptions during the preparation of the consolidated financial statements in accordance with GAAP. These estimates and assumptions affect the reported amount of assets and liabilities and disclosures of contingent assets and liabilities in the consolidated financial statements. These estimates also affect the reported amount of net earnings during the reporting periods. Actual results could differ from those estimates. Because of the size of the financial statement elements to which they relate, some of our accounting policies and estimates have a more significant impact on the consolidated financial statements than others.

There was no material change to our critical accounting policies or in the underlying accounting assumptions and estimates from those described in our Fiscal 2019 10-K, other than recently adopted accounting principles disclosed in Note 1 to the unaudited consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q, which adoptions had no material impact on net earnings.

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Non-GAAP Performance Metrics

Use of EBITDA from operations

Management measures operating performance based on consolidated earnings from operations before interest expense, expense/(benefit) for income taxes, and depreciation and amortization (“EBITDA from operations”). EBITDA from operations is not defined under GAAP, is not a measure of operating income, operating performance, or liquidity presented in accordance with GAAP, and is subject to important limitations.

We believe that the presentation of EBITDA from operations enhances an investor’s understanding of our financial performance. We believe this measure is a useful financial metric to assess our operating performance from period to period by excluding certain items that we believe are not representative of our core business and use this measure for business planning purposes. In addition, given the significant investments that we have made in the past in property, plant, and equipment, depreciation and amortization expenses represent a meaningful portion of our cost structure. We believe that EBITDA from operations will provide investors with a useful tool for assessing the comparability between periods of our ability to generate cash from operations sufficient to pay taxes, to service debt, and to undertake capital expenditures because it eliminates depreciation and amortization expense. We present EBITDA from operations in order to provide supplemental information that we consider relevant for the readers of our consolidated financial statements, and such information is not meant to replace or supersede GAAP measures. Our definition of EBITDA from operations may not be the same as similarly titled measures used by other companies. The most directly comparable GAAP measure to EBITDA from operations is net earnings. Included in this report is a reconciliation of net earnings to EBITDA from operations.

In addition, we evaluate the performance of our segments based on segment earnings before other (income)/expense, impairments, restructuring costs, interest expense, income tax expense/(benefit), and depreciation and amortization (“Segment EBITDA”).

Use of Constant Currency

As exchange rates are an important factor in understanding period-to-period comparisons, we believe the presentation of results on a constant-currency basis in addition to reported results helps improve investors’ ability to understand our operating results and evaluate our performance in comparison to prior periods. Constant-currency information compares results between periods as if exchange rates had remained constant period-over-period. We use results on a constant-currency basis as one measure to evaluate our performance. In this Quarterly Report on Form 10-Q, we compute constant currency by calculating current-year results using prior-year foreign currency exchange rates. We generally refer to such amounts calculated on a constant-currency basis as excluding the impact of foreign exchange. These results should be considered in addition to, not as a substitute for, results reported in accordance with GAAP. Results on a constant-currency basis, as we present them, may not be comparable to similarly titled measures used by other companies and are not measures of performance presented in accordance with GAAP.

Other Non-GAAP Measures

Organic revenue growth and Segment EBITDA growth are measures we use to explain the underlying results and trends in the business. Organic revenue growth and Segment EBITDA growth are measures used to show current year sales and earnings from existing operations and include revenue from licensing related activities entered into within the year. Organic revenue growth and Segment EBITDA growth exclude the impact of foreign currency, acquisitions of operating or legal entities, and divestitures within the year. These measures should be considered in addition to, not as a substitute for, performance measures reported in accordance with GAAP. These measures, as we present them, may not be comparable to similarly titled measures used by other companies and are not measures of performance presented in accordance with GAAP.

Three Months Ended March 31, 2020 Compared to the Three Months Ended March 31, 2019

The below tables summarize several financial metrics we use to measure performance for the three months ended March 31, 2020 and three months ended March 31, 2019. Refer to the discussions below regarding performance and use of key financial metrics.

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Results for the three months ended March 31, 2020 compared to the three months ended March 31, 2019 were as follows:

	Three Months Ended   March 31,				FX Impact		Constant Currency Increase/(Decrease)
(Dollars in Millions)	2020		2019				Change $		Change %
Net revenue	$	760.6	$	617.5	$	(9.1)	$	152.2	25	%
Cost of sales	521.8		418.8		(6.5)		109.5		26	%
Gross margin	238.8		198.7		(2.6)		42.7		21	%
Selling, general and administrative expenses	136.1		129.9		(0.8)		7.0		5	%
Impairment charges and (gain)/loss on sale of assets	0.6		(0.1)		0.6		0.1		(100)	%
Restructuring and other	1.3		3.1		(0.1)		(1.7)		(55)	%
Operating earnings	100.8		65.8		(2.3)		37.3		57	%
Interest expense, net	34.4		26.4		—		8.0		30	%
Other (income)/expense, net	36.7		(3.2)		(0.3)		40.2		(1256)	%
Earnings from operations before income taxes	29.7		42.6		(2.0)		(10.9)		(26)	%
Income tax expense	8.8		10.9		(0.2)		(1.9)		(17)	%
Net earnings	$	20.9	$	31.7	$	(1.8)	$	(9.0)	(28)	%

Net Revenue

	2020 vs. 2019
Factors Contributing to Year-Over-Year Change	Three Months Ended March 31,
	Net Revenue
Revenue without acquisitions/divestitures	7	%
Impact of acquisitions	20	%
Impact of divestitures	(2)	%
Constant currency change	25	%
Foreign currency translation impact on reporting	(2)	%
Total % change	23	%

Net revenue increased $152.2 million, or 25%, excluding the impact of foreign exchange, compared to the three months ended March 31, 2019. Net revenue increased 20% as a result of acquisitions, which was partially offset by a 2% decrease in net revenue due to divestitures. We acquired Catalent Maryland, Inc. (formerly Paragon Bioservices, Inc., “Gene Therapy”) in May 2019, certain additional gene therapy assets in July 2019, a facility in Anagni, Italy in January 2020, and Masthercell Global Inc. (“MaSTherCell”) in February 2020 and divested a manufacturing site in Australia in October 2019. Net revenue increased 7% without the impact of acquisitions and divestitures on a constant-currency basis, primarily related to volume increases in all of our segments.

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Gross Margin

Gross margin increased $42.7 million, or 21%, compared to the three months ended March 31, 2019, excluding the impact of foreign exchange, primarily as a result of our acquisitions and increased volumes as discussed above. On a constant-currency basis, gross margin, as a percentage of revenue, decreased 80 basis points to 31.4% in the three months ended March 31, 2020, compared to 32.2% in the prior-year period, primarily due to recent acquisitions.

Selling, General, and Administrative Expenses

Selling, general, and administrative expenses increased by $7.0 million, or 5%, compared to the three months ended March 31, 2019, excluding the impact of foreign exchange, due to incremental selling, general, and administrative expenses from acquired companies of $24.7 million, which includes $9.1 million of incremental depreciation and amortization expense, $6.4 million of employee-related costs and $2.3 million related to non-cash equity-based compensation. This increase was partially offset by a decrease in amortization expense attributable to prior-year amortization of $13.0 million related to licensing rights within our Oral and Specialty Delivery segment as well as a $3.7 million decrease related to the 2019 divestiture of an Australian facility.

Restructuring and Other    

Restructuring and other costs of $1.3 million for the three months ended March 31, 2020 decreased by $1.8 million, compared to the three months ended March 31, 2019. Restructuring expense varies period-to-period based on the timing of site consolidation efforts and other efforts to further streamline the business.

Interest Expense, net

Interest expense, net of $34.4 million for the three months ended March 31, 2020 increased by $8.0 million, or 30%, compared to the three months ended March 31, 2019, primarily driven by Operating Company's June 2019 offering of 5.00% Senior Notes due 2027 (the "USD 2027 Notes") in connection with the financing for the Gene Therapy acquisition in May 2019.

For additional information concerning our debt and financing arrangements, including the changing mix of debt and equity in our capital structure, see “—Liquidity and Capital Resources—Debt and Financing Arrangements” and Note 6 to the consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q (the "Consolidated Financial Statements").

Other (Income)/Expense, net

Other expense, net of $36.7 million for the three months ended March 31, 2020 was primarily driven by a loss of $26.3 million related to the change in the fair value of the derivative liability arising from the dividend adjustment mechanism of our series A convertible preferred stock, par value $0.01 (the "Series A Preferred Stock"), a write-off of $6.0 million of previously capitalized financing charges related to the Company's recently repaid euro-denominated term loan under its senior secured credit facilities and the Company's recently redeemed euro-denominated senior notes, and a $10.0 million premium on early redemption of the euro notes. The loss was partially offset by a foreign currency gain of $5.3 million. Other expense, net of $3.2 million for the three months ended March 31, 2019 was primarily driven by non-cash foreign currency translation losses.

Income Tax Expense

Our provision for income taxes for the three months ended March 31, 2020 was $8.8 million relative to earnings from operations before income taxes of $29.7 million. Our provision for income taxes for the three months ended March 31, 2019 was $10.9 million relative to earnings from operations before income taxes of $42.6 million. The income tax provision for the current period is not comparable to the same period of the prior year due to changes in pretax income over many jurisdictions and the impact of discrete items. Generally, fluctuations in the effective tax rate are primarily due to changes in our geographic pretax income resulting from our business mix and changes in the tax impact of permanent differences, special items, certain equity-related compensation, and other discrete tax items, which may have unique tax implications depending on the nature of the item.

The Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”), enacted in March 2020, includes numerous modifications to U.S. income tax laws, including the limitation on business interest expense, the rules concerning net operating losses (“NOL”) provisions, and the acceleration of alternative minimum tax (“AMT”) credits. The CARES Act does not change our deferred tax positions for our business interest expense or our NOL tax attributes. Additionally, we do not have any remaining AMT credit to utilize.

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Segment Review

The following charts depict the percentages of revenue for each of our four reporting segments for the three months ended March 31, 2020 compared to the three months ended March 31, 2019. Refer below for discussions regarding each segment's revenue and EBITDA performance.

Our results on a segment basis for the three months ended March 31, 2020 compared to the three months ended March 31, 2019 were as follows:

	Three Months Ended   March 31,				FX Impact		Constant Currency Increase/(Decrease)
(Dollars in Millions)	2020		2019				Change $		Change %
Softgel and Oral Technologies
Net revenue	$	242.3	$	254.0	$	(5.2)	$	(6.5)	(3)	%
Segment EBITDA	$	60.1	$	56.3	$	(1.1)	$	4.9	9	%
Biologics
Net revenue	250.0		133.7		(1.5)		117.8		88	%
Segment EBITDA	51.9		35.8		(0.2)		16.3		46	%
Oral and Specialty Delivery
Net revenue	181.4		153.8		(1.4)		29.0		19	%
Segment EBITDA	56.2		49.0		(0.6)		7.8		16	%
Clinical Supply Services
Net revenue	88.9		77.8		(1.0)		12.1		16	%
Segment EBITDA	24.6		20.3		(0.5)		4.8		24	%
Inter-segment revenue elimination	(2.0)		(1.8)		—		(0.2)		(11)	%
Unallocated Costs (1)	(63.9)		(26.0)		(0.2)		(37.7)		(145)	%
Combined totals
Net revenue	$	760.6	$	617.5	$	(9.1)	$	152.2	25	%
EBITDA from operations	$	128.9	$	135.4	$	(2.6)	$	(3.9)	(3)	%

(1) Unallocated costs include restructuring and special items, stock-based compensation, impairment charges, certain other corporate directed costs, and other costs that are not allocated to the segments as follows:

	Three Months Ended   March 31,
(Dollars in millions)	2020		2019
Impairment charges and gain/(loss) on sale of assets	$	(0.6)	$	0.1
Stock-based compensation	(8.6)		(6.6)
Restructuring and other special items (a)	(8.9)		(16.1)
Other income/(expense), net (b)	(36.7)		3.2
Unallocated corporate costs, net	(9.1)		(6.6)
Total unallocated costs	$	(63.9)	$	(26.0)

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(a) Restructuring and other special items during the three months ended March 31, 2020 include transaction and integration costs associated with our gene and cell therapy acquisitions, the disposal of one of our sites in Australia, and other restructuring initiatives across our network of sites. Restructuring and other special items during the three months ended March 31, 2019 include transaction and integration costs associated with the acquisitions of Catalent Indiana, LLC (“Catalent Indiana”) and Juniper Pharmaceuticals, Inc. (“Juniper”).

(b) Refer to Note 8, Other (income)/expense, net, for details of financing charges and foreign currency translation adjustments recorded within other income/(expense), net in our Consolidated Financial Statements.

Provided below is a reconciliation of net earnings to EBITDA from operations:

	Three Months Ended   March 31,
(Dollars in millions)	2020		2019
Net earnings	$	20.9	$	31.7
Depreciation and amortization	64.8		66.4
Interest expense, net	34.4		26.4
Income tax expense	8.8		10.9
EBITDA from operations	$	128.9	$	135.4

Softgel and Oral Technologies segment

	2020 vs. 2019
Factors Contributing to Year-Over-Year Change	Three Months Ended   March 31,
	Net Revenue		Segment EBITDA
Revenue/Segment EBITDA without divestitures	4	%	13	%
Impact of divestitures	(7)	%	(4)	%
Constant currency change	(3)	%	9	%
Foreign currency translation impact on reporting	(2)	%	(2)	%
Total % change	(5)	%	7	%

Softgel and Oral Technologies net revenue decreased by $6.5 million, or 3%, excluding the impact of foreign exchange, compared to the three months ended March 31, 2019. Net revenue increased 4%, compared to the three months ended March 31, 2019, excluding the impact of divestitures. The increase primarily relates to demand increases across our portfolio of prescription products within North America, which is partially attributable to recently launched products. Revenue in our consumer health business was also strong, predominantly within Europe.

Softgel and Oral Technologies Segment EBITDA increased $4.9 million, or 9%, compared to the three months ended March 31, 2019, excluding the impact of foreign exchange. Segment EBITDA increased 13%, compared to the three months ended March 31, 2019, excluding the impact of divestitures. The increase primarily relates to a demand increase across our portfolio of, higher-margin, prescription products within North America, as well as in our consumer health business due to strong revenue growth within Europe.

In October 2019, we divested one manufacturing site in Australia in the Softgel and Oral Technologies segment in order to better streamline our global operations. The site divestiture resulted in a decrease in net revenue of 7% and Segment EBITDA of 4% in the three months ended March 31, 2020 compared to the three months ended March 31, 2019.

Biologics segment

	2020 vs. 2019
Factors Contributing to Year-Over-Year Change	Three Months Ended   March 31,
	Net Revenue		Segment EBITDA
Revenue/Segment EBITDA without acquisitions	11	%	(5)	%
Impact of acquisitions	77	%	51	%
Constant currency change	88	%	46	%
Foreign exchange fluctuation	(1)	%	(1)	%
Total % change	87	%	45	%

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Net revenue in our Biologics segment increased by $117.8 million, or 88%, excluding the impact of foreign exchange, compared to the three months ended March 31, 2019. Excluding the effect of acquisitions, the net revenue increase was driven primarily by strong end-market demand for our U.S. drug product and U.S. drug substance offerings. Revenue growth was partially offset by the fiscal 2019 completion of a limited duration customer contract for non-cell line clinical manufacturing services in our U.S. drug substance offering as well as softening demand for our European drug product offering.

Biologics Segment EBITDA increased by $16.3 million, or 46%, compared to the three months ended March 31, 2019, excluding the impact of foreign exchange. Segment EBITDA without acquisitions decreased from the prior-year period, primarily due to softening demand for our European drug product offering as well as decreased volume demand for our U.S. drug substance product offering, predominantly due to the fiscal 2019 completion of a limited duration customer contract for non-cell line clinical manufacturing services, partially offset by strong end-market demand for our U.S. drug product and U.S. drug substance offerings.

Since March 31, 2019 we have acquired Gene Therapy, additional Gene Therapy assets, the Anagni facility, and MaSTherCell, which together increased net revenue and Segment EBITDA on an inorganic basis in our Biologics segment by 77% and 51%, respectively, in the three months ended March 31, 2020 compared to the corresponding prior-year period.

Oral and Specialty Delivery segment

	2020 vs. 2019
Factors Contributing to Year-Over-Year Change	Three Months Ended   March 31,
	Net Revenue		Segment EBITDA
Revenue/Segment EBITDA without acquisitions	6	%	7	%
Impact of acquisitions	13	%	9	%
Constant currency change	19	%	16	%
Foreign currency translation impact on reporting	(1)	%	(1)	%
Total % change	18	%	15	%

Net revenue in our Oral and Specialty Delivery segment increased by $29 million, or 19%, compared to the three months ended March 31, 2019, excluding the impact of foreign exchange. Excluding the effect of acquisitions, the net revenue increase was driven from strong end-market demand for oral commercial products across North America and Europe as well as increased volume in our respiratory and ophthalmic specialty platform due to new product launches. Revenue growth was partially offset by a prior-year favorable impact of a one-time up-front license fee.

Oral and Specialty Delivery Segment EBITDA increased by $7.8 million, or 16%, compared to the three months ended March 31, 2019, excluding the impact of foreign exchange. Segment EBITDA without acquisitions increased from the prior-year period, primarily due to favorable product mix in our respiratory and ophthalmic specialty platform due to new product launches as well as strong end-market demand for higher-margin oral commercial products across North America and Europe. Segment EBITDA growth was partially offset by the prior-year impact of a one-time up-front license fee.

On January 1, 2020, we acquired the Anagni facility, which increased net revenue and Segment EBITDA on an inorganic basis in our Oral and Specialty Delivery segment by 13% and 9%, respectively, in the three months ended March 31, 2020 compared to the corresponding prior-year period.

Clinical Supply Services segment

	2020 vs. 2019
Factors Contributing to Year-Over-Year Change	Three Months Ended   March 31,
	Net Revenue		Segment EBITDA
Revenue/Segment EBITDA	16	%	24	%
Comparator revenue recognition adoption impact	—	%	—	%
Constant currency change	16	%	24	%
Foreign currency translation impact on reporting	(2)	%	(3)	%
Total % change	14	%	21	%

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Clinical Supply Services net revenue increased by $12.1 million, or 16%, excluding the impact of foreign exchange, compared to the three months ended March 31, 2019. The increase was driven by strong global demand in our storage and distribution and manufacturing and packaging businesses.

Clinical Supply Services Segment EBITDA increased by $4.8 million, or 24%, excluding the impact of foreign exchange, compared to the three months ended March 31, 2019, primarily due to strong global demand in our storage and distribution and manufacturing and packaging businesses.

Nine Months Ended March 31, 2020 Compared to the Nine Months Ended March 31, 2019

The below tables summarize several financial metrics we use to measure performance for the nine months ended March 31, 2020 and nine months ended March 31, 2019. Refer to the discussions below regarding performance and use of key financial metrics.

	Nine Months Ended   March 31,				FX Impact		Constant Currency Increase/(Decrease)
(Dollars in Millions)	2020		2019				Change $		Change %
Net revenue	$	2,146.7	$	1,792.3	$	(25.3)	$	379.7	21	%
Cost of sales	1,498.0		1,243.7		(18.6)		272.9		22	%
Gross margin	648.7		548.6		(6.7)		106.8		19	%
Selling, general and administrative expenses	419.9		368.6		(2.1)		53.4		14	%
Impairment charges and loss on sale of assets	2.1		2.7		0.6		(1.2)		(44)	%
Restructuring and other	2.5		12.9		(0.1)		(10.3)		(80)	%
Operating earnings	224.2		164.4		(5.1)		64.9		39	%
Interest expense, net	105.6		80.0		(0.2)		25.8		32	%
Other income expense, net	37.2		3.9		(2.2)		35.5		*
Earnings from operations before income taxes	81.4		80.5		(2.7)		3.6		4	%
Income tax expense	14.9		14.2		(0.4)		1.1		8	%
Net earnings	$	66.5	$	66.3	$	(2.3)	$	2.5	4	%

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Net Revenue

	2020 vs. 2019
Factors Contributing to Year-Over-Year Change	Nine Months Ended   March 31,
	Net Revenue
Revenue without acquisitions/divestitures	8	%
Impact of acquisitions	14	%
Impact of divestitures	(1)	%
Constant currency change	21	%
Foreign currency translation impact on reporting	(1)	%
Total % change	20	%

Net revenue increased by $379.7 million, or 21%, excluding the impact of foreign exchange, compared to the nine months ended March 31, 2019. Net revenue increased 14% as a result of acquisitions, which was partially offset by a 1% decrease in net revenue due to a facility divestiture. We acquired Juniper in August 2018, Gene Therapy in May 2019, certain additional gene therapy assets in July 2019, the Anagni facility in January 2020, and MaSTherCell in February 2020 and divested a manufacturing site in Australia in October 2019. Net revenue increased 8% without the impact of acquisitions and divestitures on a constant-currency basis, primarily related to volume increases in all of our segments.

Gross Margin

Gross margin increased by $106.8 million, or 19%, compared to the nine months ended March 31, 2019, excluding the impact of foreign exchange, primarily as a result of our acquisitions and increased volumes as discussed above. On a constant-currency basis, gross margin, as a percentage of revenue, decreased 40 basis points to 30.2% in the nine months ended March 31, 2020, compared to 30.6% in the corresponding prior-year period, primarily due to recent acquisitions.

Selling, General, and Administrative Expenses

Selling, general, and administrative expenses increased by $53.4 million, or 14%, compared to the nine months ended March 31, 2019, excluding the impact of foreign exchange, primarily relating to additional selling, general and administrative expenses from acquired companies of $68.8 million, including $24.8 million of incremental depreciation and amortization expense and $16.1 million of employee-related costs, and $11.7 million related to non-cash equity-based compensation. This increase was partially offset by a decrease in amortization expense attributable to prior-year amortization of $15.0 million related to licensing rights within our Oral and Specialty Delivery segment as well as a $3.1 million decrease related to the 2019 divestiture of an Australian facility.

Restructuring and Other

Restructuring and other charges of $2.5 million for the nine months ended March 31, 2020 decreased by $10.4 million, compared to the nine months ended March 31, 2019. Restructuring expense varies period-to-period based on site consolidation efforts and other efforts to further streamline the business.

Interest Expense, net

Interest expense, net of $105.6 million for the nine months ended March 31, 2020 increased by $25.6 million, or 32%, compared to the nine months ended March 31, 2019, primarily driven by Operating Company's June 2019 offering of the USD 2027 Notes in connection with the financing for the Gene Therapy acquisition in May 2019.

Other (Income) Expense, net

Other expense, net of $37.2 million for the nine months ended March 31, 2020 was primarily driven by a loss of $24.9 million related to the change in the fair value of the derivative liability arising from the dividend adjustment mechanism of the Series A Preferred Stock, a write-off of $6.0 million of previously capitalized financing charges related to the Company's recently repaid euro-denominated term loan under its senior secured credit facilities and the Company's recently redeemed euro-denominated senior notes, and a $10.0 million premium on early redemption of the euro notes. The loss was partially offset by a foreign currency gain of $1.7 million.

Other expense, net for the nine months ended March 31, 2019 of $3.9 million was primarily driven by a $4.2 million charge from the partial extinguishment of our U.S. dollar-denominated term loans on August 1, 2018 to reduce our debt

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discount and deferred financing costs. Other expense, net also includes non-cash foreign currency translation gains in the period of $0.8 million.

Income Tax Expense

Our provision for income taxes for the nine months ended March 31, 2020 was $14.9 million relative to earnings from operations before income taxes of $81.4 million. Our provision for income taxes for the nine months ended March 31, 2019 was $14.2 million relative to earnings from operations before income taxes of $80.5 million. The income tax provision for the current period is not comparable to the same period of the prior year due to changes in pretax income over many jurisdictions and the impact of discrete items. Generally, fluctuations in our effective tax rate are primarily due to changes in the geographic distribution of our pretax income resulting from our business mix and changes in the tax impact of permanent differences, restructuring, special items, certain equity-related compensation, and other discrete tax items, which may have unique tax implications depending on the nature of the item.

The CARES Act, enacted in March 2020, includes numerous modifications to U.S. income tax laws, including the limitation on business interest expense, the rules concerning NOL provisions, and the acceleration of AMT credits. The CARES Act does not change our deferred tax positions for our business interest expense or our NOL tax attributes. Additionally, we do not have any remaining AMT credit to utilize.

Segment Review

The below charts depict the percentage of revenue for each of the Company's four segments for the nine months ended March 31, 2020 compared to the nine months ended March 31, 2019. Refer below for discussions regarding each segment's revenue and EBITDA performance.

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Our results on a segment basis for the nine months ended March 31, 2020 compared to the nine months ended March 31, 2019 were as follows:

	Nine Months Ended   March 31,				FX Impact		Constant Currency Increase/(Decrease)
(Dollars in Millions)	2020		2019				Change $		Change %
Softgel and Oral Technologies
Net revenue	$	770.8	$	748.5	$	(14.8)	$	37.1	5	%
Segment EBITDA	171.0		152.3		(3.0)		21.7		14	%
Biologics
Net revenue	663.8		395.8		(3.9)		271.9		69	%
Segment EBITDA	150.7		101.9		(0.5)		49.3		48	%
Oral and Specialty Delivery
Net revenue	457.2		419.1		(3.3)		41.4		10	%
Segment EBITDA	117.0		113.9		(1.4)		4.5		4	%
Clinical Supply Services
Net revenue	261.4		236.3		(3.2)		28.3		12	%
Segment EBITDA	70.2		61.5		(1.4)		10.1		16	%
Inter-segment revenue elimination	(6.5)		(7.4)		(0.1)		1.0		14	%
Unallocated Costs (1)	(134.6)		(95.2)		2.0		(41.4)		(43)	%
Combined totals
Net revenue	$	2,146.7	$	1,792.3	$	(25.3)	$	379.7	21	%
EBITDA from operations	$	374.3	$	334.4	$	(4.3)	$	44.2	13	%

(1) Unallocated costs include restructuring and special items, equity-based compensation, impairment charges, certain other corporate-directed costs, and other costs that are not allocated to the segments as follows:

	Nine Months Ended   March 31,
(Dollars in millions)	2020		2019
Impairment charges and (loss) on sale of assets	$	(2.1)	$	(2.7)
Equity compensation	(35.5)		(24.1)
Restructuring and other special items (a)	(28.6)		(35.2)
Other expense, net (b)	(37.2)		(3.9)
Non-allocated corporate costs, net	(31.2)		(29.3)
Total unallocated costs	$	(134.6)	$	(95.2)

(a) Restructuring and other special items during the nine months ended March 31, 2020 include transaction and integration costs associated with the Company's gene and cell therapy acquisitions, the disposal of one of our sites in Australia, and other restructuring initiatives across the Company's network of sites, Restructuring and other special items during the nine months ended March 31, 2019 include transaction and integration costs associated with the acquisitions of Catalent Indiana and Juniper.

(b) Refer to Note 8, Other (income)/expense, net, for details of financing charges and foreign currency translation adjustments recorded within other income/(expense), net in our Consolidated Financial Statements.

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Provided below is a reconciliation of net earnings to EBITDA from operations:

	Nine Months Ended   March 31,
(Dollars in millions)	2020		2019
Net earnings	$	66.5	$	66.3
Depreciation and amortization	187.3		173.9
Interest expense, net	105.6		80.0
Income tax expense	14.9		14.2
EBITDA from operations	$	374.3	$	334.4

Softgel and Oral Technologies segment

	2020 vs. 2019
Factors Contributing to Year-Over-Year Change	Nine Months Ended   March 31,
	Net Revenue		Segment EBITDA
Revenue/Segment EBITDA without divestitures	9	%	17	%
Impact of divestitures	(4)	%	(3)	%
Constant currency change	5	%	14	%
Foreign exchange fluctuation	(2)	%	(2)	%
Total % change	3	%	12	%

Softgel and Oral Technologies’ net revenue increased $37.1 million, or 5%, excluding the impact of foreign exchange, compared to the nine months ended March 31, 2019. Net revenue increased 9%, compared to the nine months ended March 31, 2019, excluding the impact of divestitures. The increase relates to continued strong demand across our portfolio of prescription products within North America, which is partially attributable to recently launched products. Demand for our portfolio of consumer health products continues to accelerate, predominantly within Europe.

Softgel and Oral Technologies’ Segment EBITDA increased by $21.7 million, or 14%, compared to the nine months ended March 31, 2019, excluding the impact of foreign exchange. Segment EBITDA increased 17%, compared to the nine months ended March 31, 2019, excluding the impact of divestitures. The increase primarily relates to the demand increase across our portfolio of, higher-margin, prescription products within North America, as well as our consumer health business, in line with the strong revenue growth within Europe.

In October 2019, we divested one manufacturing site in Australia in the Softgel and Oral Technologies segment in order to better streamline our global operations. The site divestiture resulted in a decrease in net revenue of 4% and Segment EBITDA of 3% in the nine months ended March 31, 2020 compared to the nine months ended March 31, 2019.

Biologics

	2020 vs. 2019
Factors Contributing to Year-Over-Year Change	Nine Months Ended   March 31,
	Net Revenue		Segment EBITDA
Revenue/Segment EBITDA without acquisitions	10	%	(2)	%
Impact of acquisitions	59	%	50	%
Constant currency change	69	%	48	%
Foreign exchange fluctuation	(1)	%	—	%
Total % change	68	%	48	%

Net revenue in our Biologics segment increased by $271.9 million, or 69%, excluding the impact of foreign exchange, compared to the nine months ended March 31, 2019. Excluding the effect of acquisitions, the net revenue increase was driven primarily by strong end-market demand for our U.S. drug product and U.S. drug substance offerings, with the former being delivered through improved capacity utilization. Drug substance growth was partially offset by the fiscal 2019 completion of a limited duration customer contract for non-cell line clinical manufacturing services as well as softening demand for our European drug product offering.

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Biologics Segment EBITDA increased by $49.3 million, or 48%, compared to the nine months ended March 31, 2019, excluding the impact of foreign exchange. Segment EBITDA, excluding the effect of acquisitions, decreased from the corresponding prior-year period, primarily due to decreased volume demand for our U.S. drug substance product offering, predominantly due to the fiscal 2019 completion of a limited duration customer contract for non-cell line clinical manufacturing services and softening demand for our European drug product offering, partially offset by increased demand for our U.S. drug product offering.

Since March 31, 2019, we have acquired Gene Therapy, additional Gene Therapy assets, the Anagni facility, and MaSTherCell, which together increased net revenue and Segment EBITDA on an inorganic basis in our Biologics segment by 59% and 50%, respectively, in the nine months ended March 31, 2020 compared to the corresponding prior-year period.

Oral and Specialty Delivery segment

	2020 vs. 2019
Factors Contributing to Year-Over-Year Change	Nine Months Ended   March 31,
	Net Revenue		Segment EBITDA
Revenue/Segment EBITDA without acquisitions	4	%	—	%
Impact of acquisitions	6	%	4	%
Constant currency change	10	%	4	%
Foreign exchange fluctuation	(1)	%	(1)	%
Total % change	9	%	3	%

Net revenue in our Oral and Specialty Delivery segment increased by $41.4 million, or 10%, compared to the nine months ended March 31, 2019, excluding the impact of foreign exchange. Excluding the effect of acquisitions, the increase was principally attributable to strong end-market demand for oral commercial products across North America and Europe and increased volume in our respiratory and ophthalmic specialty platform due to new product launches. Revenue growth was partially offset by a prior-year favorable impact of a one-time up-front license fee as well as decreased volume in our respiratory and ophthalmic specialty platform, due to strong prior-year demand, related to an anticipated new product launch.

Oral and Specialty Delivery’s Segment EBITDA increased by $4.5 million, or 4%, compared to the nine months ended March 31, 2019, excluding the impact of foreign exchange. Segment EBITDA, excluding the effect of acquisitions, was in line with the corresponding prior-year period, primarily due to strong end-market demand for higher-margin oral commercial products across North America and Europe and increased volume in our respiratory and ophthalmic specialty platform due to new product launches. This was partially offset by a prior-year favorable impact of a one-time up-front license fee and decreased volume in our respiratory and ophthalmic specialty platform due to strong prior-year demand, related to an anticipated new product introduction.

On an inorganic basis, our Juniper and Anagni facility acquisitions together increased net revenue and Segment EBITDA in our Oral and Specialty Delivery segment by 6% and 4%, respectively, in the nine months ended March 31, 2020 compared to the corresponding prior-year period.

Clinical Supply Services segment

	2020 vs. 2019
Factors Contributing to Year-Over-Year Change	Nine Months Ended   March 31,
	Net Revenue		Segment EBITDA
Revenue/Segment EBITDA	12	%	16	%
Comparator revenue recognition adoption impact	—	%	—	%
Constant currency change	12	%	16	%
Foreign exchange fluctuation	(1)	%	(2)	%
Total % change	11	%	14	%

Clinical Supply Services’ net revenue increased by $28.3 million, or 12%, compared to the nine months ended March 31, 2019, excluding the impact of foreign exchange. The increase was driven by strong global demand in our storage and distribution and manufacturing and packaging businesses.

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Clinical Supply Services’ Segment EBITDA increased by $10.1 million, or 16%, excluding the impact of foreign exchange, compared to the nine months ended March 31, 2019, primarily due to strong global demand in our storage and distribution and manufacturing and packaging businesses.

Liquidity and Capital Resources

Sources and Uses of Cash

Our principal sources of liquidity have been cash flows generated from operations and certain financing activities for acquisitions. The principal uses of cash are to fund operating and capital expenditures, business or asset acquisitions, interest payments on debt, the payment of deferred purchase consideration from the Catalent Indiana acquisition, the payment of the quarterly dividend on the Series A Preferred Stock, and any mandatory or discretionary principal payment on our debt. At the current stated value of the Series A Preferred Stock outstanding as of March 31, 2020, the aggregate amount of each regular quarterly dividend, if paid in cash, is $8.1 million. As of March 31, 2020, Operating Company had $350 million available under its $550 million revolving credit facility that matures in May 2024 (following the May 2019 fourth amendment to Operating Company's amended and restated credit agreement dated May 2014 (as amended, the "Credit Agreement")), the capacity of which was reduced by $5.4 million in letters of credit outstanding as of March 31, 2020. The revolving credit facility includes borrowing capacity available for letters of credit and for short-term borrowings, referred to as swing-line borrowings. We borrowed $200.0 million in March 2020 under Operating Company's revolving credit facility prophylactically in response to unsettled market conditions resulting from the COVID-19 pandemic to increase liquidity for general corporate purposes. Such borrowing remained outstanding as of March 31, 2020 and bore interest at the rate of 2.93% during the portion of the three months ended March 31, 2020 when such borrowing existed.

We believe that our cash on hand, cash from operations, and available borrowings under our revolving credit facility will be adequate to meet our future liquidity needs for at least the next twelve months, including our quarterly regular dividend on the Series A Preferred Stock, if paid in cash, as well as the amounts expected to become due with respect to our pending capital projects. We have no significant maturity under any of our bank or note debt until the U.S. dollar-denominated 4.875% Senior Notes due 2026 (the “USD 2026 Notes”) mature in January 2026. As of March 31, 2020, we have only two remaining payments of $50.0 million each, due in October 2020 and 2021, on the deferred purchase consideration for the acquisition of Catalent Indiana.

On October 29, 2015, our Board of Directors authorized a share repurchase program to use up to $100.0 million to repurchase shares of our outstanding Common Stock. Under the program, we are authorized to repurchase shares through open market purchases, privately negotiated transactions, or otherwise as permitted by applicable federal securities laws. There has been no purchase pursuant to this program as of March 31, 2020.

Cash Flows

The following table summarizes our consolidated statements of cash flows:

	Nine Months Ended   March 31,
(Dollars in millions)	2020		2019		$ Change
Net cash provided by/(used in):
Operating activities	$	267.6	$	159.8	$	107.8
Investing activities	$	(664.8)	$	(257.7)	$	(407.1)
Financing activities	$	670.7	$	(82.5)	$	753.2

Operating Activities

For the nine months ended March 31, 2020, cash provided by operating activities was $267.6 million, compared to $159.8 million for the corresponding prior-year period. Cash flow from operating activities for the nine months ended March 31, 2020 increased primarily due to an increase in operating earnings which increased from $164.4 million in the corresponding prior-year period to $224.2 million in the nine months ended March 31, 2020.

Investing Activities

For the nine months ended March 31, 2020, cash used in investing activities was $664.8 million, compared to $257.7 million for the nine months ended March 31, 2019. The higher level of cash use was primarily driven by an increase in cash used for business acquisitions in the nine months ended March 31, 2020, which was $379.7 million compared to $127.5 million of cash used in the corresponding prior-year period. In addition, there was an increase in cash used in the acquisition of

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property, plant, and equipment, which totaled $303.5 million in the nine months ended March 31, 2020 compared to $129.3 million in the nine months ended March 31, 2019.

Financing Activities

For the nine months ended March 31, 2020, cash provided by financing activities was $670.7 million, compared to cash used in financing activities of $82.5 million for the nine months ended March 31, 2019. The increase in cash from financing activities is primarily driven by net cash received from the issuance of new long-term debt during the nine months ended March 31, 2020, which consists of €825.0 million aggregate principal amount of Operating Company's 2.375% Senior Notes due 2028 (the "Euro 2028 Notes") and $200.0 million borrowed under the revolving credit facility within the Company's senior secured credit facilities. The cash proceeds from the borrowings was partially offset by repayment in full of the outstanding borrowings under Operating Company's euro-denominated term loans under its senior secured credit facilities that would otherwise have matured in May 2024 and euro-denominated 4.75% Senior Notes due 2024. The cash from financing activities during the nine months ended March 31, 2020 also increased due to the net proceeds from the February 2020 Equity Offering of $494.2 million. The net proceeds of the February 2020 Equity Offering were used to repay $100.0 million of borrowings in January 2020 under Operating Company's revolving credit facility and to fund the consideration for the MaSTherCell acquisition due at its closing, with the remainder available for general corporate purposes. The cash used in financing activities during the prior-year period primarily consists of $450.0 million used for a partial repayment of the then-outstanding U.S. dollar-denominated term loan, offset in substantial part by net proceeds of $445.3 million from the Company's July 2018 public offering of shares of its Common Stock.

Guarantees and Security

The Senior Notes

All obligations under Operating Company's Euro 2028 Notes, USD 2026 Notes, and USD 2027 Notes (collectively, the "Senior Notes") are general, unsecured, and subordinated to all existing and future secured indebtedness of the guarantors to the extent of the value of the assets securing such indebtedness. Each of the Senior Notes is separately guaranteed by all of Operating Company's wholly owned U.S. subsidiaries that guarantee the senior secured credit facilities. None of the Senior Notes is guaranteed by either PTS Intermediate Holdings LLC or Catalent, Inc.

Debt Covenants

Senior Secured Credit Facilities

The Credit Agreement contains a number of covenants that, among other things, restrict, subject to certain exceptions, Operating Company’s (and Operating Company’s restricted subsidiaries’) ability to incur additional indebtedness or issue certain preferred shares; create liens on assets; engage in mergers and consolidations; sell assets; pay dividends and distributions or repurchase capital stock; repay subordinated indebtedness; engage in certain transactions with affiliates; make investments, loans, or advances; make certain acquisitions; enter into sale and leaseback transactions; amend material agreements governing Operating Company’s subordinated indebtedness; and change Operating Company’s lines of business.

The Credit Agreement also contains change-of-control provisions and certain customary affirmative covenants and events of default. The revolving credit facility requires compliance with a net leverage covenant when there is a 30% or more draw outstanding at a period end. As of March 31, 2020, Operating Company was in compliance with all material covenants under the Credit Agreement.

Subject to certain exceptions, the Credit Agreement permits Operating Company and its restricted subsidiaries to incur certain additional indebtedness, including secured indebtedness. None of Operating Company's non-U.S. subsidiaries or its Puerto Rico subsidiary is a guarantor of the loans.

Under the Credit Agreement, Operating Company's ability to engage in certain activities such as incurring certain additional indebtedness, making certain investments, and paying certain dividends is tied to ratios based on Adjusted EBITDA (which is defined as “Consolidated EBITDA” in the Credit Agreement). Adjusted EBITDA is based on the definitions in the Credit Agreement, is not defined under GAAP, and is subject to important limitations.

As market conditions warrant, we and our affiliates may from time to time seek to purchase our outstanding debt in privately negotiated or open-market transactions, by tender offer or otherwise. Subject to any applicable limitation contained in the Credit Agreement, any purchase made by us may be funded by the use of cash on hand or the incurrence of new secured or unsecured debt. The amounts involved in any such purchase transaction, individually or in the aggregate, may be material. Any such purchase may be with respect to a substantial amount of a particular class or series of debt, with the attendant reduction in the trading liquidity of such class or series. In addition, any such purchase made at prices below the “adjusted issue price” (as

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defined for U.S. federal income tax purposes) may result in taxable cancellation of indebtedness income to us, which amounts may be material, or in related adverse tax consequences to us.

The Senior Notes

The several indentures governing each series of the Senior Notes (collectively, the “Indentures”) contain certain covenants that, among other things, limit the ability of Operating Company and its restricted subsidiaries to incur or guarantee more debt or issue certain preferred shares; pay dividends on, repurchase, or make distributions in respect of their capital stock or make other restricted payments; make certain investments; sell certain assets; create liens; consolidate, merge, sell; or otherwise dispose of all or substantially all of their assets; enter into certain transactions with their affiliates, and designate their subsidiaries as unrestricted subsidiaries. These covenants are subject to a number of exceptions, limitations, and qualifications as set forth in the Indentures. The Indentures also contain customary events of default, including, but not limited to, nonpayment, breach of covenants, and payment or acceleration defaults in certain other indebtedness of Operating Company or certain of its subsidiaries. Upon an event of default, either the holders of at least 30% in principal amount of each of the then-outstanding series of Senior Notes, or the applicable Trustee under the Indentures, may declare the applicable Senior Notes immediately due and payable; or in certain circumstances, the applicable Senior Notes will become automatically immediately due and payable. As of March 31, 2020, Operating Company was in compliance with all material covenants under the Indentures.

Geographic Allocation of Cash

As of March 31, 2020 and June 30, 2019, our subsidiaries held cash and cash equivalents of $208.2 million and $203.9 million, respectively, out of the total consolidated cash and cash equivalents of $608.4 million and $345.4 million, respectively. These balances are dispersed across many locations around the world.

Interest Rate Risk Management

A portion of the debt used to finance our operations is exposed to interest-rate fluctuations. We may use various hedging strategies and derivative financial instruments to create an appropriate mix of fixed- and floating-rate assets and liabilities. Historically, we have used interest-rate swaps to manage the economic effect of variable-rate interest obligations associated with our floating-rate term loans so that the interest payable on the term loans effectively becomes fixed at a certain rate, thereby reducing the impact of future interest-rate changes on our future interest expense. As of March 31, 2020, we did not have any interest-rate swap agreement in place that would have the economic effect of modifying the variable-rate interest obligations associated with our floating-rate term loans.

In April 2020, we entered into an interest-rate swap agreement with Bank of America N.A. as a hedge against the economic effect of a portion of the variable-interest obligation associated with our U.S dollar-denominated term loans under our senior secured credit facilities, so that the interest payable on that portion of the debt becomes fixed at a certain rate, thereby reducing the impact of future interest-rate changes on future interest expense. The applicable rate for the U.S. dollar-denominated term loan is LIBOR (subject to a floor of 1.00%) plus 2.25%; however, as a result of entering into the interest-rate swap agreement, the floating portion of the applicable rate on $500.0 million of the term loan is now effectively fixed at 1.26% for a total fixed rate of 3.51%.

Currency Risk Management

We are exposed to fluctuations in the euro-U.S. dollar exchange rate on our investments in our foreign operations in Europe. While we do not actively hedge against changes in foreign currency, we have mitigated the exposure of our investments in our European operations by denominating a portion of our debt in euros. At March 31, 2020, we had $894.1 million of euro-denominated debt outstanding that qualifies as a hedge of a net investment in foreign operations. Refer to Note 10 to our Consolidated Financial Statements for further discussion of net investment hedge activity in the period.

From time to time, we may use forward foreign currency exchange contracts to manage our exposure to the variability of cash flows primarily related to the foreign exchange rate changes of future foreign currency transaction costs. In addition, we may use such contracts to protect the value of existing foreign currency assets and liabilities. Currently, we do not use any forward foreign currency exchange contracts. We expect to continue to evaluate hedging opportunities for foreign currency in the future.

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Contractual Obligations

Besides the change in our long-term obligations related to the issuance of the Euro 2028 Notes, the paydown of the euro-denominated term loans under our senior secured credit facilities and the redemption of our euro-denominated 4.75% Senior Notes due 2024 in March 2020, and the borrowing of $200.0 million under our revolving credit facility in March 2020, there has been no significant change to our contractual obligations since our Fiscal 2019 10-K. Refer to Note 6 to our Consolidated Financial Statements for a further discussion regarding our long-term obligations.

Off-Balance Sheet Arrangements

Other than short-term operating leases and outstanding letters of credit as discussed above, we do not have any material off-balance sheet arrangement as of March 31, 2020.

In April 2020, we entered into an interest-rate swap agreement with Bank of America N.A. as a hedge against the economic effect of a portion of the variable-interest obligation associated with our U.S dollar-denominated term loans under our senior secured credit facilities, so that the interest payable on that portion of the debt becomes fixed at a certain rate, thereby reducing the impact of future interest-rate changes on future interest expense. The applicable rate for the U.S. dollar-denominated term loan is LIBOR (subject to a floor of 1.00%) plus 2.25%; however, as a result of entering into the interest-rate swap agreement, the floating portion of the applicable rate on $500.0 million of the term loan is now effectively fixed at 1.26%, for a total fixed rate of 3.51%.

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Item 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

We are exposed to cash flow and earnings fluctuations as a result of certain market risks. These market risks primarily relate to changes in interest rates associated with our long-term debt obligations and foreign exchange rate changes.

Interest Rate Risk

We have historically used interest-rate swaps to manage the economic effect of variable-rate interest obligations associated with our floating-rate term loans so that the interest payable on the term loans effectively becomes fixed at a certain rate, thereby reducing the impact of future interest-rate changes on our future interest expense. As of March 31, 2020, we did not have any interest-rate swap agreement in place that would either have the economic effect of modifying the variable-rate interest obligations associated with our floating-rate term loans or would be considered an effective cash flow hedge for financial reporting purposes.

In April 2020, we entered into an interest-rate swap agreement with Bank of America N.A. as a hedge against the economic effect of a portion of the variable-interest obligation associated with our U.S dollar-denominated term loans under our senior secured credit facilities, so that the interest payable on that portion of the debt becomes fixed at a certain rate, thereby reducing the impact of future interest-rate changes on future interest expense. The applicable rate for the U.S. dollar-denominated term loan is LIBOR (subject to a floor of 1.00%) plus 2.25%; however, as a result of entering into the interest-rate swap agreement, the floating portion of the applicable rate on $500.0 million of the term loan is now effectively fixed at 1.26%, for a total fixed rate of 3.51%.

Foreign Currency Exchange Risk

By the nature of our global operations, we are exposed to cash flow and earnings fluctuations resulting from foreign exchange rate variation. These exposures are transactional and translational in nature. Since we manufacture and sell our products throughout the world, our foreign-currency risk is diversified. Principal drivers of this diversified foreign-exchange exposure include the European euro, British pound, Argentinean peso, Brazilian real, and Australian dollar. Our transactional exposure arises from the purchase and sale of goods and services in currencies other than the functional currency of our operational units. We also have exposure related to the translation of financial statements of our foreign subsidiaries into U.S. dollars, the functional currency of Operating Company. The financial statements of our operations outside the U.S. are measured using the local currency as the functional currency, except in Argentina. Adjustments to translate the assets and liabilities of these foreign operations in U.S. dollars are accumulated as a component of accumulated other comprehensive income/(loss) utilizing period-end exchange rates. Foreign-currency transaction gains and losses calculated by utilizing weighted average exchange rates for the period are included in the statements of operations in other (income)/expense, net. Such foreign-currency transaction gains and losses include inter-company loans denominated in non-U.S. dollar currencies.

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Item 4. CONTROLS AND PROCEDURES

Disclosure Controls and Procedures

We maintain disclosure controls and procedures that are designed to ensure that information required to be disclosed in our reports under the Exchange Act is recorded, processed, summarized, and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to our management, including our President and Chief Executive Officer and our Senior Vice President and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosures. Any control or procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives. Our management, with the participation of our President and Chief Executive Officer, and our Senior Vice President and Chief Financial Officer, has evaluated the effectiveness of the design and operation of our disclosure controls and procedures as of the end of the period covered by this Quarterly Report on Form 10-Q. Based upon that evaluation, our President and Chief Executive Officer and our Senior Vice President and Chief Financial Officer concluded that, as of March 31, 2020, our disclosure controls and procedures were effective to accomplish their objectives at the reasonable assurance level.

Changes in Internal Control over Financial Reporting

During the first quarter of the current fiscal year, we implemented controls related to the adoption of Accounting Standards Codification 842, Leases and the related financial statement reporting. There was no other change in our internal control over financial reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) that occurred during our most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

In May 2019, we acquired Gene Therapy, and Gene Therapy acquired additional assets in July 2019. During the nine months ended March 31, 2020, we continued to integrate Gene Therapy into our financial reporting processes and procedures and internal control over financial reporting. As part of this process, we have undertaken efforts to significantly enhance the internal controls of Gene Therapy, which were not subject to the internal control requirements applicable to U.S. public companies prior to our acquisition, to bring them in line with our internal controls over financial reporting, and those efforts are ongoing.

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PART II. OTHER INFORMATION

Item 1. LEGAL PROCEEDINGS

From time to time, we may be involved in legal proceedings arising in the ordinary course of business, including, without limitation, inquiries and claims concerning environmental contamination as well as litigation and allegations in connection with acquisitions, product liability, manufacturing or packaging defects, and claims for reimbursement for the cost of lost or damaged active pharmaceutical ingredients, the cost of any of which could be significant. We intend to vigorously defend ourselves against any such litigation and do not currently believe that the outcome of any such litigation will have a material adverse effect on our consolidated financial statements. In addition, the healthcare industry is highly regulated, and government agencies continue to scrutinize certain practices affecting government programs and otherwise.

From time to time, we receive subpoenas or requests for information relating to the business practices and activities of customers or suppliers from various governmental agencies or private parties, including from state attorneys general, the U.S. Department of Justice, and private parties engaged in patent infringement, antitrust, tort, and other litigation. We generally respond to such subpoenas and requests in a timely and thorough manner, which responses sometimes require considerable time and effort and can result in considerable costs being incurred. We expect to incur costs in future periods in connection with future requests.

Item 1A. RISK FACTORS

In addition to the other information set forth in this report, you should carefully consider the factors discussed in the section entitled “Risk Factors” in our Fiscal 2019 10-K, which could materially affect our business, financial condition, or future results. The risks described in such report are not the only risks facing us. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial also may materially adversely affect our business, financial condition, or operating results.

Other than (i) what was disclosed in the Special Note Regarding Forward-Looking Statements and (ii) what is specifically noted below, there has been no material change to the risk factors disclosed in our Fiscal 2019 10-K.

Our business, financial condition, and results of operations may be adversely affected by global health epidemics, including the COVID-19 pandemic.

In January 2020, the World Health Organization declared the novel coronavirus outbreak (COVID-19) to be a “Public Health Emergency of International Concern.” COVID-19 has spread across the globe and is affecting worldwide economic activity. Any public health epidemic, including the COVID-19 pandemic, may affect our operations and those of third parties on which we rely, including our customers and suppliers. Our business, financial condition, and results of operations may be affected by: disruptions in our customers’ abilities to fund, develop, or bring to market products as anticipated; delays in or disruptions to the conduct of clinical trials; cancellations of contracts or confirmed orders from our customers; decreased demand for categories of products in certain affected regions; and inability, difficulty, or additional cost or delays in obtaining key raw materials, components, and other supplies from our existing supply chain; among other factors caused by the COVID-19 pandemic. In addition, the COVID-19 pandemic may affect the operations of the U.S. Food and Drug Administration and other drug regulatory authorities, which could result in delays of inspections, reviews, and approvals of our customers’ products. Our operations could be disrupted if our employees become ill or are otherwise absent from work as a result of the COVID-19 pandemic. Additionally, governmental restrictions, including travel restrictions, quarantines, shelter-in-place orders, business closures, new safety requirements or regulations, or restrictions on the import or export of certain materials, or other operational issues related to the COVID-19 pandemic may have an adverse effect on our business and results of operations. We continue to monitor our operations and governmental recommendations and have made modifications for an indefinite period to our normal operations because of the COVID-19 pandemic, including requiring most non-production related employees to work remotely. Additionally, while the potential economic impact brought by and the duration of the COVID-19 pandemic are difficult to assess or predict, the impact of the COVID-19 pandemic on the global financial markets may reduce our ability to access capital, which could negatively affect our short- and long-term liquidity.

To date, the COVID-19 pandemic has not had a material adverse impact on our business, financial condition, or results of operations. However, the extent to which the COVID-19 outbreak may affect our future results will depend on future developments that are highly uncertain and cannot be predicted with confidence, including the duration of the pandemic, new information that may emerge concerning the severity of the virus, and the actions governments, competitors, suppliers, customers, patients, and others may take to contain or address its direct and indirect effects. The COVID-19 outbreak and mitigation measures may also have an adverse impact on global economic conditions or economic conditions in one or more regions where we or our customers operate, which could have an adverse effect on our business and financial condition.

51

Table of Contents

Item 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

None.

Purchase of Equity Securities

None.

Item 3. DEFAULTS UPON SENIOR SECURITIES

None.

Item 4. MINE SAFETY DISCLOSURES

Not applicable.

Item 5. OTHER INFORMATION

Not applicable.

Item 6. EXHIBITS

Exhibits:

2.1	Stock Purchase Agreement, dated as of February 2, 2020, among Catalent Pharma Solutions, Inc., Orgenesis Inc. and GPP-II Masthercell, LLC .
4.1	Indenture, dated March 2, 2020, by and among Catalent Pharma Solutions, Inc., the subsidiary guarantors named therein, Deutsche Trustee Company Limited, as trustee, Deutsche Bank AG, London Branch, as principal paying agent, and Deutsche Bank Luxembourg S.A., as transfer agent and registrar.
4.2	Form of 2.375% Senior Notes due 2028 (included as part of Exhibit 4.1 above).
31.1	Certification of the Chief Executive Officer pursuant to Rule 13a-14(a) or Rule 15d-14(a) of the Securities Exchange Act of 1934, as amended. *
31.2	Certification of the Chief Financial Officer pursuant to Rule 13a-14(a) or Rule 15d-14(a) of the Securities Exchange Act of 1934, as amended. *
32.1	Certification of the Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. **
32.2	Certification of the Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. **
101.1	The following financial information from Catalent, Inc.’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2020 formatted in inline XBRL: (i) Consolidated Statements of Operations for the Three and Nine Months Ended March 31, 2020 and 2019; (ii) Consolidated Statements of Comprehensive Income/(Loss) for the Three and Nine Months Ended March 31, 2020 and 2019 (iii) Consolidated Balance Sheets as of March 31, 2020 and June 30, 2019; (iv) Consolidated Statement of Changes in Shareholders’ Equity/(Deficit) as of March 31, 2020 and 2019; (v) Consolidated Statements of Cash Flows for the Three and Nine Months Ended March 31, 2020 and 2019; and (vi) Notes to Unaudited Consolidated Financial Statements.

* Filed herewith

** Furnished herewith

52

Table of Contents

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

		CATALENT, INC. (Registrant)
Date:	May 5, 2020	By:	/s/ John R. Chiminski
			John R. Chiminski
			Chief Executive Officer
Date:	May 5, 2020	By:	/s/ Wetteny Joseph
			Wetteny Joseph
			Senior Vice President & Chief Financial Officer

53

EX-31.1

Exhibit 31.1

CERTIFICATION PURSUANT TO SECTION 302

OF THE SARBANES-OXLEY ACT OF 2002

I, John R. Chiminski, certify that:

1.I have reviewed this Quarterly Report on Form 10-Q for the period ended March 31, 2020 of Catalent, Inc.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: May 5, 2020

/s/ JOHN R. CHIMINSKI

John R. Chiminski

Chief Executive Officer

(Principal Executive Officer)

EX-31.2

Exhibit 31.2

CERTIFICATION PURSUANT TO SECTION 302

OF THE SARBANES-OXLEY ACT OF 2002

I, Wetteny Joseph, certify that:

1.I have reviewed this Quarterly Report on Form 10-Q for the period ended March 31, 2020 of Catalent, Inc.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: May 5, 2020

/s/ WETTENY JOSEPH

Wetteny Joseph

Senior Vice President and

Chief Financial Officer

(Principal Financial Officer)

EX-32.1

Exhibit 32.1

Certification of the Chief Executive Officer

Pursuant to 18 U.S.C. Section 1350,

As Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

In connection with the Annual Report of Catalent, Inc. (the “Company”) on Form 10-Q for the period ended March 31, 2020 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, John R. Chiminski, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: May 5, 2020

/s/ JOHN R. CHIMINSKI

John R. Chiminski

Chief Executive Officer

EX-32.2

Exhibit 32.2

Certification of the Chief Financial Officer

Pursuant to 18 U.S.C. Section 1350,

As Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

In connection with the Annual Report of Catalent, Inc. (the “Company”) on Form 10-Q for the period ended March 31, 2020 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Wetteny Joseph, Senior Vice President and Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: May 5, 2020

/s/ WETTENY JOSEPH

Wetteny Joseph

Senior Vice President and

Chief Financial Officer

XML

Subsequent Events (Notes)	9 Months Ended
	Mar. 31, 2020
Subsequent Events [Abstract]
Subsequent Events [Text Block]	SUBSEQUENT EVENTSIn April 2020, the Company entered into an interest-rate swap agreement with Bank of America N.A. as a hedge against the economic effect of a portion of the variable interest obligation associated with its U.S dollar-denominated term loans under its senior secured credit facilities, so that the interest payable on that portion of the debt becomes fixed at a certain rate, thereby reducing the impact of future interest rate changes on future interest expense. The applicable rate for the U.S. dollar-denominated term loan is LIBOR (subject to a floor of 1.00%) plus 2.25%; however, as a result of entering into the interest-rate swap agreement, the floating portion of the applicable rate on $500.0 million of the term loan is now effectively fixed at 1.26%, for a total fixed rate of 3.51%.

XML

Leases

9 Months Ended

Mar. 31, 2020

Leases [Abstract]

Leases of Lessee Disclosure [Text Block]

LEASES

The Company leases certain manufacturing and office facilities, land, vehicles, and equipment. The terms of these leases vary widely, although most have terms between 3 and 10 years.

In accordance with ASC 842, Leases, the Company recognizes a “right-of-use” asset and related lease liability at the commencement date of each lease based on the present value of the fixed lease payments over the expected lease term. The lease term for this purpose will include any renewal period where the Company determines that it is reasonably certain that it will exercise the option to renew. While certain leases also permit Catalent to terminate the lease in advance of the nominal term upon payment of an associated penalty, the Company generally does not take into account potential early termination dates in its determination of the lease term as it is reasonably certain not to exercise an early-termination option as of the lease commencement date.

The Company uses its incremental borrowing rate, which represents the interest rate the Company would expect to pay on a collateralized basis to borrow an amount equal to the lease payments under similar terms, in order to calculate the present value of a lease, since the implicit discount rate for its leases is not readily determinable.

Fixed lease payments are recognized on straight-line basis over the lease term, while variable payments are recognized in the period incurred. As permitted by ASC 842, the Company has elected not to separate those components of a lease agreement not related to the leasing of an asset from those components that are related.

The Company does not record leases with an initial lease term of 12 months or less on its consolidated balance sheets. The Company recognizes lease expense for these short-term leases on a straight-line basis over the lease term.

Supplemental information concerning the leases recorded in the Company's unaudited consolidated balance sheet as of March 31, 2020 is detailed in the following table:

(Dollars in millions)	Line item in the consolidated balance sheet	Balance at March 31, 2020
Right-of-use assets:
Finance leases	Property, plant, and equipment, net	$	100.6
Operating leases	Other assets	90.7
Current lease liabilities:
Finance leases	Current portion of long-term obligations and other short-term borrowings	12.2
Operating leases	Other accrued liabilities	15.0
Non-current lease liabilities:
Finance leases	Long-term obligations, less current portion	124.9
Operating leases	Other liabilities	73.5

The components of the net lease costs for the three and nine months ended March 31, 2020 reflected in the Company's unaudited consolidated statement of operations were as follows:

(Dollars in millions)	Three months ended March 31, 2020		Nine Months ended March 31, 2020
Finance lease costs:
Amortization of right-of-use assets	$	2.9	$	8.6
Interest on lease liabilities	2.7		9.1
Total	5.6		17.7
Operating lease costs	5.3		14.2
Variable lease costs	1.3		5.0
Total lease costs	$	12.2	$	36.9

The weighted average remaining lease term and weighted average discount rate related to the Company's right-of-use assets and lease liabilities as of March 31, 2020 are as follows:

Weighted average remaining lease term (years):
Finance leases	13.4
Operating leases	8.9
Weighted average discount rate:
Finance leases	8.6	%
Operating leases	4.5	%

Supplemental information concerning the cash-flow impact arising from the Company's leases for the nine months ended March 31, 2020 recorded in the Company's unaudited consolidated statement of cash flows is detailed in the following table (in millions):

	Nine Months ended March 31, 2020
Cash paid for amounts included in lease liabilities:
Financing cash flows used for finance leases	$	44.8
Operating cash flows used for finance leases	9.1
Operating cash flows used for operating leases	9.6
Non-cash transactions:
Right-of-use assets obtained in exchange for new finance lease liabilities	11.9
Right-of-use assets obtained in exchange for new operating lease liabilities	53.2

As of March 31, 2020, the Company expects that its future minimum lease payments will become due and payable as follows:

(Dollars in millions)	Finance Leases		Operating Leases		Total
Remainder of fiscal 2020	$	5.9	$	4.4	$	10.3
2021	21.6		17.5		39.1
2022	19.3		16.6		35.9
2023	18.0		16.1		34.1
2024	17.0		12.1		29.1
Thereafter	142.4		43.5		185.9
Total minimum lease payments	224.2		110.2		334.4
Less: interest	87.1		21.7		108.8
Total lease liabilities	$	137.1	$	88.5	$	225.6

XML

Leases - Schedule of Operating and Finance Leases Presented in the Balance Sheet (Details) $ in Millions	Mar. 31, 2020 USD ($)
Assets and Liabilities, Lessee [Abstract]
Finance Lease, Right-of-Use Asset	$ 100.6
Operating Lease, Right-of-Use Asset	90.7
Finance Lease, Liability, Current	12.2
Operating Lease, Liability, Current	15.0
Finance Lease, Liability, Noncurrent	124.9
Operating Lease, Liability, Noncurrent	$ 73.5

XML

Equity and Accumulated Other Comprehensive Income (Loss) - Equity (Details) - USD ($) $ / shares in Units, $ in Millions		3 Months Ended		9 Months Ended
	Feb. 06, 2020	Mar. 31, 2020	Mar. 31, 2019	Mar. 31, 2020	Mar. 31, 2019	Jun. 30, 2019	May 17, 2019
Equity [Abstract]
Common Stock, Shares Authorized		1,000,000,000		1,000,000,000		1,000,000,000
Common Stock, Par or Stated Value Per Share		$ 0.01		$ 0.01		$ 0.01
Preferred Stock, Shares Authorized		100,000,000		100,000,000		100,000,000
Preferred Stock, Par or Stated Value Per Share		$ 0.01		$ 0.01		$ 0.01
Equity offering, sale of common stock	8,400,000
Shares Issued, Price Per Share	$ 58.58
Equity offering, sale of common stock, net	$ 494.2	$ 494.2	$ (0.2)	$ 494.2	$ 445.3
Proceeds from Issuance of Common Stock used to Repay Debt	$ 100.0
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Number of Shares		500,000		500,000
Preferred Stock, Shares Issued		650,000		650,000		650,000	650,000
Stock Repurchase Program, Authorized Amount		$ 100.0		$ 100.0

XML

Restructuring and Other Costs (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Mar. 31, 2020	Mar. 31, 2019
Restructuring and Related Activities [Abstract]
Restructuring and other	$ 1.3	$ 3.1	$ 2.5	$ 12.9

XML

Leases (Tables)

9 Months Ended

Mar. 31, 2020

Leases [Abstract]

Schedule Of Operating And Financing Leases Presented In Balance Sheet [Table Text Block]

Supplemental information concerning the leases recorded in the Company's unaudited consolidated balance sheet as of March 31, 2020 is detailed in the following table:

(Dollars in millions)	Line item in the consolidated balance sheet	Balance at March 31, 2020
Right-of-use assets:
Finance leases	Property, plant, and equipment, net	$	100.6
Operating leases	Other assets	90.7
Current lease liabilities:
Finance leases	Current portion of long-term obligations and other short-term borrowings	12.2
Operating leases	Other accrued liabilities	15.0
Non-current lease liabilities:
Finance leases	Long-term obligations, less current portion	124.9
Operating leases	Other liabilities	73.5

Lease, Cost [Table Text Block]

The components of the net lease costs for the three and nine months ended March 31, 2020 reflected in the Company's unaudited consolidated statement of operations were as follows:

(Dollars in millions)	Three months ended March 31, 2020		Nine Months ended March 31, 2020
Finance lease costs:
Amortization of right-of-use assets	$	2.9	$	8.6
Interest on lease liabilities	2.7		9.1
Total	5.6		17.7
Operating lease costs	5.3		14.2
Variable lease costs	1.3		5.0
Total lease costs	$	12.2	$	36.9

The weighted average remaining lease term and weighted average discount rate related to the Company's right-of-use assets and lease liabilities as of March 31, 2020 are as follows:

Weighted average remaining lease term (years):
Finance leases	13.4
Operating leases	8.9
Weighted average discount rate:
Finance leases	8.6	%
Operating leases	4.5	%

Schedule Of Supplemental Cash Flow Information Related To Leases [Table Text Block]

Supplemental information concerning the cash-flow impact arising from the Company's leases for the nine months ended March 31, 2020 recorded in the Company's unaudited consolidated statement of cash flows is detailed in the following table (in millions):

	Nine Months ended March 31, 2020
Cash paid for amounts included in lease liabilities:
Financing cash flows used for finance leases	$	44.8
Operating cash flows used for finance leases	9.1
Operating cash flows used for operating leases	9.6
Non-cash transactions:
Right-of-use assets obtained in exchange for new finance lease liabilities	11.9
Right-of-use assets obtained in exchange for new operating lease liabilities	53.2

Schedule Of Maturities Of Operating And Finance Lease Liabilities [Table Text Block]

As of March 31, 2020, the Company expects that its future minimum lease payments will become due and payable as follows:

(Dollars in millions)	Finance Leases		Operating Leases		Total
Remainder of fiscal 2020	$	5.9	$	4.4	$	10.3
2021	21.6		17.5		39.1
2022	19.3		16.6		35.9
2023	18.0		16.1		34.1
2024	17.0		12.1		29.1
Thereafter	142.4		43.5		185.9
Total minimum lease payments	224.2		110.2		334.4
Less: interest	87.1		21.7		108.8
Total lease liabilities	$	137.1	$	88.5	$	225.6

XML

Basis of Presentation and Summary of Significant Accounting Policies Recent Financial Accounting Standards (Details) $ in Millions	9 Months Ended
	Mar. 31, 2020 USD ($)
Accounting Standards Update 2016-02 [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification	$ 46.0

XML

Supplemental Balance Sheet Information - Other Accrued Liabilities (Detail) - USD ($) $ in Millions	Mar. 31, 2020	Jun. 30, 2019
Balance Sheet Related Disclosures [Abstract]
Accrued employee-related expenses	$ 119.2	$ 103.9
Restructuring accrual	3.8	8.2
Accrued interest	12.1	11.7
Contract liability	160.2	155.2
Accrued income tax	0.0	8.5
Other accrued liabilities and expenses	73.8	50.9
Other accrued liabilities	$ 369.1	$ 338.4

XML

Leases - Cost (Details) $ in Millions	3 Months Ended	9 Months Ended
	Mar. 31, 2020 USD ($)	Mar. 31, 2020 USD ($)
Lease, Cost [Abstract]
Finance Lease, Right-of-Use Asset, Amortization	$ 2.9	$ 8.6
Finance Lease, Interest Expense	2.7	9.1
Finance Lease Expense	5.6	17.7
Operating Lease, Expense	5.3	14.2
Variable Lease, Cost	1.3	5.0
Lease, Cost	$ 12.2	$ 36.9
Finance Lease, Weighted Average Remaining Lease Term	13 years 4 months 24 days	13 years 4 months 24 days
Operating Lease, Weighted Average Remaining Lease Term	8 years 10 months 24 days	8 years 10 months 24 days
Finance Lease, Weighted Average Discount Rate, Percent	8.60%	8.60%
Operating Lease, Weighted Average Discount Rate, Percent	4.50%	4.50%

XML

Segment Information, EBITDA, Reconciling Items (Detail) - USD ($) $ in Millions		3 Months Ended		9 Months Ended
		Mar. 31, 2020	Mar. 31, 2019	Mar. 31, 2020		Mar. 31, 2019
Unallocated costs [Abstract]
Impairment Charges And Gain Loss On Sale Of Assets		$ (0.6)	$ 0.1	$ (2.1)		$ (2.7)
Stock-based compensation		8.6	6.6	35.5		24.1
Restructuring And Other Special Items		8.9	16.1	28.6	[1]	35.2	[1]
Other income/(expense),net	[2]	(36.7)	3.2	(37.2)		(3.9)
Non Allocated Corporate Costs Net		9.1	6.6	31.2		29.3
Segment Reporting Information Unallocated Expense	[3]	$ 63.9	$ 26.0	$ 134.6		$ 95.2

[1] Restructuring and other special items during the nine months ended March 31, 2020 include transaction and integration costs associated with the Company’s gene and cell therapy acquisitions, the disposal of one of its sites in Australia, and other restructuring initiatives across the Company's network of sites. Restructuring and other special items during the nine months ended March 31, 2019 include transaction and integration costs associated with the acquisitions of Catalent Indiana LLC and Juniper Pharmaceuticals, Inc.

[2] Refer to Note 8, Other (income)/expense, net, for details of financing charges and foreign currency translation adjustments recorded within other income/(expense), net.

[3] Unallocated costs include restructuring and special items, equity-based compensation, impairment charges, certain other corporate directed costs, and other costs that are not allocated to the segments as follows:

XML

Supplemental Balance Sheet Information - Prepaid and Other Assets (Detail) - USD ($) $ in Millions	Mar. 31, 2020	Jun. 30, 2019
Prepaid Expense and Other Assets, Current [Abstract]
Prepaid expenses	$ 33.1	$ 18.7
Contract with Customer, Asset, Net, Current	35.6	23.3
Spare parts supplies	23.1	8.1
Prepaid income tax	11.0	10.0
Non-U.S. value added tax	12.0	16.4
Other current assets	27.0	23.6
Prepaid expenses and other	$ 141.8	$ 100.1

XML

Long-Term Obligations and Other Short-Term Borrowings Fair Value Measurements of Financial Instruments - Carrying Amounts and Estimated Fair Value of Financial Instruments (Details) - USD ($) $ in Millions	Mar. 31, 2020	Jun. 30, 2019
Estimate of Fair Value Measurement [Member]
Fair Value Measurements Of Financial Instruments [Line Items]
Debt Instrument, Fair Value Disclosure	$ 3,045.3	$ 2,946.2
Carrying Value [Member]
Fair Value Measurements Of Financial Instruments [Line Items]
Debt Instrument, Fair Value Disclosure	3,198.7	2,959.3
Four Point Seven Five Percent Senior Euro Denominated Notes [Member] | Fair Value, Inputs, Level 2 [Member] | Estimate of Fair Value Measurement [Member]
Fair Value Measurements Of Financial Instruments [Line Items]
Debt Instrument, Fair Value Disclosure	0.0	454.2
Four Point Seven Five Percent Senior Euro Denominated Notes [Member] | Fair Value, Inputs, Level 2 [Member] | Carrying Value [Member]
Fair Value Measurements Of Financial Instruments [Line Items]
Debt Instrument, Fair Value Disclosure	0.0	428.3
U.S Dollar-denominated 5.00% Senior Notes [Member] | Fair Value, Inputs, Level 2 [Member] | Estimate of Fair Value Measurement [Member]
Fair Value Measurements Of Financial Instruments [Line Items]
Debt Instrument, Fair Value Disclosure	482.7	509.0
U.S Dollar-denominated 5.00% Senior Notes [Member] | Fair Value, Inputs, Level 2 [Member] | Carrying Value [Member]
Fair Value Measurements Of Financial Instruments [Line Items]
Debt Instrument, Fair Value Disclosure	492.8	492.1
2.375% Senior Euro Denominated Notes [Member] | Fair Value, Inputs, Level 2 [Member] | Estimate of Fair Value Measurement [Member]
Fair Value Measurements Of Financial Instruments [Line Items]
Debt Instrument, Fair Value Disclosure	789.2	0.0
2.375% Senior Euro Denominated Notes [Member] | Fair Value, Inputs, Level 2 [Member] | Carrying Value [Member]
Fair Value Measurements Of Financial Instruments [Line Items]
Debt Instrument, Fair Value Disclosure	894.1	0.0
U.S. dollar-denominated 4.875% Senior Notes due 2026 | Fair Value, Inputs, Level 2 [Member] | Estimate of Fair Value Measurement [Member]
Fair Value Measurements Of Financial Instruments [Line Items]
Debt Instrument, Fair Value Disclosure	438.7	457.0
U.S. dollar-denominated 4.875% Senior Notes due 2026 | Fair Value, Inputs, Level 2 [Member] | Carrying Value [Member]
Fair Value Measurements Of Financial Instruments [Line Items]
Debt Instrument, Fair Value Disclosure	445.2	444.6
Senior Secured Credit Facilities & Other [Member] | Fair Value, Inputs, Level 2 [Member] | Estimate of Fair Value Measurement [Member]
Fair Value Measurements Of Financial Instruments [Line Items]
Debt Instrument, Fair Value Disclosure	1,334.7	1,526.0
Senior Secured Credit Facilities & Other [Member] | Fair Value, Inputs, Level 2 [Member] | Carrying Value [Member]
Fair Value Measurements Of Financial Instruments [Line Items]
Debt Instrument, Fair Value Disclosure	$ 1,366.6	$ 1,594.3

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Definite Lived Long-Lived Assets - Other Intangible Assets Subject to Amortization (Detail) - USD ($) $ in Millions	3 Months Ended	9 Months Ended	12 Months Ended
	Mar. 31, 2020	Mar. 31, 2020	Jun. 30, 2019
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Value	$ 1,432.2	$ 1,432.2	$ 1,434.1
Accumulated Amortization	(524.9)	(524.9)	(503.3)
Net Carrying Value	907.3	$ 907.3	$ 930.8
Core technology [Member]
Finite-Lived Intangible Assets [Line Items]
Weighted Average Life		19 years	18 years
Gross Carrying Value	133.1	$ 133.1	$ 168.2
Accumulated Amortization	(80.3)	(80.3)	(105.6)
Net Carrying Value	52.8	$ 52.8	$ 62.6
Customer Relationships [Member]
Finite-Lived Intangible Assets [Line Items]
Weighted Average Life		14 years	14 years
Gross Carrying Value	1,016.6	$ 1,016.6	$ 981.1
Accumulated Amortization	(228.3)	(228.3)	(182.5)
Net Carrying Value	788.3	$ 788.3	$ 798.6
Product Relationships [Member]
Finite-Lived Intangible Assets [Line Items]
Weighted Average Life		11 years	11 years
Gross Carrying Value	268.0	$ 268.0	$ 275.5
Accumulated Amortization	(212.9)	(212.9)	(213.9)
Net Carrying Value	$ 55.1	55.1	$ 61.6
Other Intangible Assets [Member]
Finite-Lived Intangible Assets [Line Items]
Weighted Average Life	4 years		4 years
Gross Carrying Value	$ 14.5	14.5	$ 9.3
Accumulated Amortization	(3.4)	(3.4)	(1.3)
Net Carrying Value	$ 11.1	$ 11.1	$ 8.0

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Goodwill (Tables)

9 Months Ended

Mar. 31, 2020

Goodwill Disclosure [Abstract]

Goodwill - Rollforward

The following table summarizes the changes between June 30, 2019 and March 31, 2020 in the carrying amount of goodwill in total and by reporting segment:

(Dollars in millions)	Softgel & Oral Technologies		Biologics		Oral & Specialty Delivery		Clinical Supply Services		Total
Balance at June 30, 2019	$	409.2	$	1,320.0	$	340.3	$	151.4	$	2,220.9
Additions	—		260.6		—		—		260.6
Reallocation	108.1		(124.3)		16.2		—		—
Other	(1.4)		(6.8)		1.1		—		(7.1)
Foreign currency translation adjustments	(13.0)		(1.3)		(6.0)		(4.8)		(25.1)
Balance at March 31, 2020	$	502.9	$	1,448.2	$	351.6	$	146.6	$	2,449.3

The addition to goodwill in the Biologics reporting segment relates to the Novavax and MaSTherCell transactions. See Note 3, Business Combinations. The reallocation of goodwill relates to the adjustments to the Company’s reporting segments, as a result of which certain assets moved from the Biologics reporting segment to the Oral and Specialty Delivery reporting segment, and other assets moved from the Oral and Specialty Delivery reporting segment to the Softgel and Oral Technologies reporting segment. The Company recorded no impairment charge to goodwill in the current period.

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Consolidated Statement of Changes in Shareholder's Equity Consolidated Statement of Changes in Shareholders' Equity (Parenthetical) - shares	3 Months Ended		9 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Mar. 31, 2020	Mar. 31, 2019
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning Balance - Common Stock Outstanding (shares)			145,738,286
Ending Balance - Common Stock Outstanding (shares)	154,867,791		154,867,791
Common Stock
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning Balance - Common Stock Outstanding (shares)	146,359,500	145,622,900	145,738,300	133,423,600
Equity offering, sale of common stock	8,445,900		8,445,900	11,431,400
Share issuances related to stock-based compensation	62,400	83,900	683,600	851,800
Ending Balance - Common Stock Outstanding (shares)	154,867,800	145,706,800	154,867,800	145,706,800

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Consolidated Statements of Comprehensive Income / (Loss) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Mar. 31, 2020	Mar. 31, 2019
Other comprehensive income/(loss), net of tax
Net earnings/(loss)	$ 20.9	$ 31.7	$ 66.5	$ 66.3
Foreign currency translation adjustments	(43.1)	21.5	(42.8)	(4.9)
Pension and other post-retirement adjustments	0.1	0.4	3.1	1.4
Other comprehensive income/(loss), net of tax	(43.0)	21.9	(39.7)	(3.5)
Comprehensive income/(loss)	$ (22.1)	$ 53.6	$ 26.8	$ 62.8

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Earnings Per Share (Tables)

9 Months Ended

Mar. 31, 2020

Earnings Per Share [Abstract]

Schedule of Earnings Per Share, Basic and Diluted

The reconciliations between basic and diluted earnings per share attributable to Catalent common shareholders for the three and nine months ended March 31, 2020 and 2019, respectively, are as follows (in millions, except share and per share data):

	Three Months Ended   March 31,				Nine Months Ended   March 31,
	2020		2019		2020		2019
Net earnings	$	20.9	$	31.7	$	66.5	$	66.3
Less: Net earnings attributable to preferred shareholders	(9.1)		—		(27.8)		—
Net earnings attributable to common shareholders	$	11.8	$	31.7	$	38.7	$	66.3
Weighted average shares outstanding	151,267,795		145,145,310		147,647,548		143,896,635
Weighted average dilutive securities issuable-stock plans	1,787,847		1,612,961		1,843,559		1,696,575
Total weighted average diluted shares outstanding	153,055,642		146,758,271		149,491,107		145,593,210
Earnings per share:
Basic	$	0.08	$	0.22	$	0.26	$	0.46
Diluted	$	0.08	$	0.22	$	0.26	$	0.46

The computations of diluted earnings per share for the three and nine months ended March 31, 2020 excludes the effect of potential common shares issuable under employee-held stock options and restricted stock units of approximately 0.5 million and 0.6 million, respectively, because they are anti-dilutive. The computations of diluted earnings per share for the three and nine months ended March 31, 2019 excludes the effect of potential common shares issuable under employee-held stock options and restricted stock units of approximately 1.1 million and 1.0 million, respectively, because they are anti-dilutive. Further, the computation of diluted earnings per share for the three and nine months ended March 31, 2020, respectively, excludes the effect of approximately 13.1 million “if-converted” shares of Common Stock potentially issuable on the conversion of Series A Preferred Stock, as those shares would be anti-dilutive.

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Income Taxes

9 Months Ended

Mar. 31, 2020

Income Tax Disclosure [Abstract]

Income Taxes

INCOME TAXES

The Company accounts for income taxes in accordance with ASC 740, Income Taxes. Generally, fluctuations in the effective tax rate are primarily due to changes in U.S. and non-U.S. pretax income resulting from the Company’s business mix and changes in the tax impact of special items and other discrete tax items, which may have unique tax implications depending on the nature of the item. Such discrete items include, but are not limited to, changes in foreign statutory tax rates, the amortization of certain assets, the tax impact of changes in the Company's unrecognized tax benefit reserves and the tax impact of certain equity compensation.

In the normal course of business, the Company is subject to examination by taxing authorities around the world, including such major jurisdictions as the United States, Germany, France, and the United Kingdom. The Company is no longer subject to examinations by the relevant tax authorities for years prior to fiscal year 2009.

ASC 740 includes guidance on the accounting for uncertainty in income taxes recognized in the financial statements. This standard provides that a tax benefit from an uncertain tax position may be recognized when it is more likely than not that the position will be sustained upon examination, including resolution of any related appeal or litigation process, based on the technical merits. As of March 31, 2020 and June 30, 2019, the Company had an aggregate of $4.7 million and $5.2 million, respectively, of uncertain tax positions (including accrued interest and penalties). As of these dates, $3.6 million and $3.8 million, respectively, represent the amount of unrecognized tax benefits, which, if recognized, would favorably affect the effective income tax rate. Interest and penalties related to uncertain tax positions are recognized as a component of income tax expense.

The Company recorded a provision for income taxes for the three months ended March 31, 2020 of $8.8 million relative to earnings from operations before income taxes of $29.7 million. The Company recorded a provision for income taxes for the three months ended March 31, 2019 of $10.9 million relative to earnings from operations before income taxes of $42.6 million. The income tax provision for the current period is not comparable to the same period of the prior year due to changes in pretax income over many jurisdictions and the impact of discrete items. Generally, fluctuations in the effective tax rate are primarily due to changes in our geographic pretax income resulting from our business mix and changes in the tax impact of permanent differences, special items, certain equity related compensation and other discrete tax items, which may have unique tax implications depending on the nature of the item.

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Earnings Per Share

9 Months Ended

Mar. 31, 2020

Earnings Per Share [Abstract]

Earnings Per Share

EARNINGS PER SHAREThe Company computes earnings per share (“EPS”) of the Company's Common Stock using the two-class method required due to the participating nature of the Series A Preferred Stock (as defined and discussed in Note 14, Redeemable Preferred Stock—Series A Preferred). Diluted net income per share is computed using the weighted average number of shares of Common Stock outstanding plus the weighted average number of shares of Common Stock that would be issued assuming exercise or conversion of all potentially dilutive instruments. Dilutive securities having an anti-dilutive effect on diluted net income per share are excluded from the calculation. The dilutive effect of the securities that are issuable under the Company’s equity incentive plans are reflected in diluted earnings per share by application of the treasury stock method. The reconciliations between basic and diluted earnings per share attributable to Catalent common shareholders for the three and nine months ended March 31, 2020 and 2019, respectively, are as follows (in millions, except share and per share data):

	Three Months Ended   March 31,				Nine Months Ended   March 31,
	2020		2019		2020		2019
Net earnings	$	20.9	$	31.7	$	66.5	$	66.3
Less: Net earnings attributable to preferred shareholders	(9.1)		—		(27.8)		—
Net earnings attributable to common shareholders	$	11.8	$	31.7	$	38.7	$	66.3
Weighted average shares outstanding	151,267,795		145,145,310		147,647,548		143,896,635
Weighted average dilutive securities issuable-stock plans	1,787,847		1,612,961		1,843,559		1,696,575
Total weighted average diluted shares outstanding	153,055,642		146,758,271		149,491,107		145,593,210
Earnings per share:
Basic	$	0.08	$	0.22	$	0.26	$	0.46
Diluted	$	0.08	$	0.22	$	0.26	$	0.46

The computations of diluted earnings per share for the three and nine months ended March 31, 2020 excludes the effect of potential common shares issuable under employee-held stock options and restricted stock units of approximately 0.5 million and 0.6 million, respectively, because they are anti-dilutive. The computations of diluted earnings per share for the three and nine months ended March 31, 2019 excludes the effect of potential common shares issuable under employee-held stock options and restricted stock units of approximately 1.1 million and 1.0 million, respectively, because they are anti-dilutive. Further, the computation of diluted earnings per share for the three and nine months ended March 31, 2020, respectively, excludes the effect of approximately 13.1 million “if-converted” shares of Common Stock potentially issuable on the conversion of Series A Preferred Stock, as those shares would be anti-dilutive.

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Business Combinations

9 Months Ended

Mar. 31, 2020

Business Combinations [Abstract]

Business Combination Disclosure [Text Block]

BUSINESS COMBINATIONS

Paragon Bioservices, Inc. Acquisition

On May 17, 2019, the Company acquired 100% of the equity interest in Catalent Maryland, Inc. (formerly Paragon Bioservices, Inc., “Gene Therapy”) for an aggregate nominal purchase price of $1,192.1 million, which was subject to adjustment (as further discussed below), in order to enhance the Company’s end-to-end integrated biopharmaceutical solutions. Gene Therapy is a leading contract development and manufacturing organization (“CDMO”) focused on the development and manufacturing of cutting-edge biopharmaceuticals, including viral vectors used in gene therapies.

The Company estimated fair values at the acquisition date for the preliminary allocation of consideration to the net tangible and intangible assets acquired and liabilities assumed. During the measurement period ending no later than one year after the acquisition date, the Company will continue to obtain information to assist in finalizing the fair values of the net assets acquired, which may differ materially from these preliminary estimates. Amounts subject to finalization include working capital adjustments and income taxes. If any measurement period adjustment is material, the Company will record such adjustment, including any related impact on net income, in the reporting period in which the adjustment is determined. During the first quarter of fiscal 2020, the Company received an escrow refund of $7.6 million related to an assessment of various asset and liability balances and expenses as of the acquisition date. The adjustment is reflected in both goodwill and cash (part of other net assets). This adjustment had no impact on the consolidated statement of operations. There was no other change in these balances related to the acquisition noted during this period.

The Company accounted for the transaction using the acquisition method of accounting for business combinations, in accordance with ASC 805.

Novavax Transaction Overview

On July 31, 2019, Gene Therapy acquired from Novavax Inc. (“Novavax”) certain property, plant and equipment, rights to two facilities under leases in southern Maryland, certain raw material inventory, and the right to assume the employment of more than 100 Novavax employees located at those facilities in the areas of operations, quality, and product development, among other things. Gene Therapy made a cash payment of $18.3 million in connection with the acquisition. The Company considers the transaction to be a business combination under ASC 805, Business Combinations and accounted for it using the acquisition method of accounting. The Company estimated fair values at the acquisition date for the allocation of consideration to the acquired items.

The aggregate purchase consideration was funded with cash on hand. As a result of the preliminary fair value allocations, the Company recognized property, plant, and equipment of $15.6 million and $0.3 million for inventory. The remainder of the fair value, $2.4 million, was allocated to goodwill, primarily the value of the existing organized and trained work force.

The Novavax transaction expanded Gene Therapy’s early-development capabilities and supplemented Gene Therapy’s pool of experienced biologics operatives to support its growth.

Anagni Acquisition

Pursuant to a June 2019 agreement between Operating Company and a unit of Bristol-Myers Squibb Company (“BMS”), Operating Company acquired BMS’s oral solid, biologics, and sterile product manufacturing and packaging facility in Anagni, Italy on January 1, 2020. The Company paid to BMS $55.3 million in cash as part of the purchase consideration and as consideration for the provision of certain services to facilitate the transition from BMS to Company ownership. At the closing of this acquisition, BMS also entered into a five-year agreement for continuing supply by the Company of certain products formerly produced by BMS at the Anagni facility. Due to the variety of activities performed at Anagni, the results of the Anagni facility are allocated between the Oral and Specialty Delivery and Biologics segments.

The total cash consideration was allocated between the facility purchase and the transitional services arrangement, with $52.2 million assigned to the purchase consideration and the balance to transitional services. The Company funded the entire amount with cash on hand and has preliminarily allocated the purchase price among the acquired assets, recognizing property, plant, and equipment of $34.2 million, inventory of $7.0 million, and prepaid expenses and other of $12.4 million. The remainder of the value was allocated to deferred tax assets and certain employee-related liabilities assumed in the acquisition. The Company expects to finalize its allocation over the next several months, but, in any event, within one year from the closing.

MaSTherCell Global Inc.

Acquisition Transaction Overview

On February 10, 2020, the Company acquired 100% of the equity interest in Masthercell Global Inc. (“MaSTherCell”) for an aggregate purchase price of $323.3 million, subject to adjustment, which was funded with the net proceeds of the Company’s February 2020 offering (the “February 2020 Equity Offering”) of its common stock, par value $0.01 (“Common Stock”). See Note 13, Equity and Accumulated Other Comprehensive Income/(Loss). MaSTherCell is a CDMO focused on the development and manufacture of autologous and allogeneic cell therapies for third parties, as well as a variety of related analytical services.

MaSTherCell has a facility in Gosselies, Belgium providing clinical services, and construction is in progress there on a dedicated commercial-scale production and fill-finish facility, which is scheduled to open in the fall of 2021. Its U.S. facility in Houston, Texas, upon completion of validation activities, will focus on development-scale projects.

The Company accounted for the MaSTherCell acquisition using the acquisition method in accordance with ASC 805, Business Combinations. The operating results of MaSTherCell have been included in the Company’s consolidated financial statements for the period following the acquisition date. For the period from the acquisition date through March 31, 2020, MaSTherCell’s net revenue was $5.1 million and pre-tax earnings were $0.5 million. Transaction costs incurred as a result of the acquisition of $3.1 million are included in selling, general, and administrative expenses for the period ended March 31, 2020.

Valuation Assumptions and Preliminary Purchase Price Allocation

The Company has preliminarily estimated fair values at the date of acquisition for the preliminary allocation of consideration to the net tangible and intangible assets acquired and liabilities assumed as part of the MaSTherCell acquisition. During the measurement period ending no later than one year after the acquisition date, the Company will continue to obtain information to assist in finalizing the fair values of the net assets acquired, which may differ materially from these preliminary estimates. Amounts subject to finalization include working capital and income taxes. If any measurement period adjustment is material, the Company will record such adjustment, including any related impact on net income, in the reporting period in which the adjustment is determined.

The preliminary purchase price allocation to assets acquired and liabilities assumed in the transaction is (in millions):

Property, plant, and equipment	$	25.5
Identifiable intangible assets	51.0
Other net assets	2.0
Deferred income tax liabilities	(13.4)
Total identifiable net assets	$	65.1
Goodwill	258.2
Total assets acquired and liabilities assumed	$	323.3

The carrying values of trade receivables, raw materials inventory, and trade payables, as well as certain other current and non-current assets and liabilities generally represented their fair values at the date of acquisition.

Property, plant, and equipment was valued using the cost approach, which is based on the current replacement or reproduction cost of the asset as new, less depreciation attributable to physical, functional, and economic factors. The Company then determined the remaining useful life based on the anticipated life of the asset and Company policy for similar assets.

Customer-relationship intangible assets of $46.3 million were valued using the multi-period, excess-earnings method, a method that values the intangible asset using the present value of the after-tax cash flows attributable to the intangible asset only. The significant assumptions used in developing the valuation included the estimated annual net cash flows (including application of an appropriate margin to forecasted revenue, selling and marketing costs, return on working capital, contributory asset charges, and other factors), the discount rate that appropriately reflects the risk inherent in each future cash flow stream, and an assessment of the asset’s life cycle, as well as other factors. The assumptions used in the financial forecasts were based on historical data, supplemented by current and anticipated growth rates, management plans, and market-comparable information. Fair-value determinations require considerable judgment and are sensitive to changes in underlying assumptions, among other things. Preliminary assumptions may change and may result in adjustments to the final valuation. The customer relationship intangible asset has a weighted average useful life of 13 years.

Goodwill has been allocated to our Biologics segment as shown in Note 4, Goodwill. Goodwill is mainly comprised of the following: growth from an expected increase in capacity utilization, potential new customers, and advanced cell therapy development and manufacturing capabilities.

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Supplemental Balance Sheet Information - Property and Equipment (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Mar. 31, 2020	Mar. 31, 2019	Jun. 30, 2019
Property, Plant and Equipment, Net [Abstract]
Land Buildings And Improvements	$ 1,174.6		$ 1,174.6		$ 1,049.4
Machinery, equipment, and capitalized software	1,143.5		1,143.5		1,104.9
Furniture and fixtures	19.2		19.2		16.9
Construction in progress	426.9		426.9		278.9
Property, plant, and equipment, at cost	2,764.2		2,764.2		2,450.1
Accumulated depreciation	(994.7)		(994.7)		(913.4)
Property, plant, and equipment, net	1,769.5		1,769.5		$ 1,536.7
Depreciation Expense on Reclassified Assets	$ 41.8	$ 35.0	$ 121.0	$ 104.8

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Subsequent Events,Loan Agreement (Details) - U.S. Denominated Term Loan [Member] - Subsequent Event [Member] $ in Millions	Apr. 30, 2020 USD ($)
Interest Rate Swap [Line Items]
Total Debt, U.S Denominated Term Loan	$ 500.0
Total Fixed Rate	3.51%
Debt Instrument, Interest Rate, Effective Percentage	1.26%
Minimum [Member] | LIBOR Rate [Domain]
Interest Rate Swap [Line Items]
Debt Instrument, Basis Spread on Variable Rate	1.00%
Maximum [Member] | LIBOR Rate [Domain]
Interest Rate Swap [Line Items]
Debt Instrument, Basis Spread on Variable Rate	2.25%

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Leases - Schedule of Supplemental Cash Flow Information (Details) $ in Millions	9 Months Ended
	Mar. 31, 2020 USD ($)
Cash Paid For Amounts Included In Measurement Of Lease Liabilities [Abstract]
Finance Lease, Principal Payments	$ 44.8
Finance Lease, Interest Payment on Liability	9.1
Operating Lease, Payments	9.6
Right-of-Use Asset Obtained in Exchange for Finance Lease Liability	11.9
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability	$ 53.2

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Segment Information - Reconciliation of Earnings / (Loss) from Continuing Operations to Ebitda (Detail) - USD ($) $ in Millions		3 Months Ended		9 Months Ended
		Mar. 31, 2020	Mar. 31, 2019	Mar. 31, 2020	Mar. 31, 2019
Segment Reporting [Abstract]
Segment Reporting Information Unallocated Expense	[1]	$ 63.9	$ 26.0	$ 134.6	$ 95.2
Depreciation and amortization		64.8	66.4	187.3	173.9
Interest expense, net		34.4	26.4	105.6	80.0
Income tax expense(benefit)		8.8	10.9	14.9	14.2
Earnings/(loss) from continuing operations		$ 20.9	$ 31.7	$ 66.5	$ 66.3

[1] Unallocated costs include restructuring and special items, equity-based compensation, impairment charges, certain other corporate directed costs, and other costs that are not allocated to the segments as follows:

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Long-Term Obligations and Other Short-Term Borrowings Long-Term Obligations and Other Short-Term Borrowings (Details) € in Millions, $ in Millions	Oct. 23, 2017 USD ($)	Mar. 31, 2020 USD ($)	Mar. 31, 2020 EUR (€)	Feb. 28, 2020 USD ($)	Jun. 30, 2019 USD ($)
Debt Instrument [Line Items]
Total long-term debt		$ 3,198.7			$ 2,959.3
Payments to Acquire Businesses, Gross	$ 950.0
Payable Installments for Business Acquisition	50.0
Installment Payment for Acquisition, Year 1		50.0
Installment Payment for Acquisition, Year Two		50.0
Installment Payment for Acquisition, Year Three		50.0
Installment Payment for Acquisition, Year Four		50.0
2.375% Senior Euro Denominated Notes [Member]
Debt Instrument [Line Items]
Total long-term debt | €			€ 825.0
Revolving Credit Facility - Two
Debt Instrument [Line Items]
Total long-term debt		$ 200.0		$ 100.0	$ 0.0
Accrued Liabilities [Member]
Debt Instrument [Line Items]
Payments to Acquire Businesses, Gross	$ 200.0

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Goodwill - Rollforward (Detail) $ in Millions	9 Months Ended
	Mar. 31, 2020 USD ($)
Goodwill [Roll Forward]
Beginning balance	$ 2,220.9
Goodwill, Acquired During Period	260.6
Goodwill, Transfers	0.0
Goodwill, Other Increase (Decrease)	(7.1)
Foreign currency translation adjustments	(25.1)
Ending balance	2,449.3
Softgel and Oral Technologies
Goodwill [Roll Forward]
Beginning balance	409.2
Goodwill, Acquired During Period	0.0
Goodwill, Transfers	108.1
Goodwill, Other Increase (Decrease)	(1.4)
Foreign currency translation adjustments	(13.0)
Ending balance	502.9
Biologics
Goodwill [Roll Forward]
Beginning balance	1,320.0
Goodwill, Acquired During Period	260.6
Goodwill, Transfers	(124.3)
Goodwill, Other Increase (Decrease)	(6.8)
Foreign currency translation adjustments	(1.3)
Ending balance	1,448.2
Oral and Specialty Drug Delivery
Goodwill [Roll Forward]
Beginning balance	340.3
Goodwill, Acquired During Period	0.0
Goodwill, Transfers	16.2
Goodwill, Other Increase (Decrease)	1.1
Foreign currency translation adjustments	(6.0)
Ending balance	351.6
Clinical Supply Services
Goodwill [Roll Forward]
Beginning balance	151.4
Goodwill, Acquired During Period	0.0
Goodwill, Transfers	0.0
Goodwill, Other Increase (Decrease)	0.0
Foreign currency translation adjustments	(4.8)
Ending balance	$ 146.6

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Consolidated Statement of Changes in Shareholder's Equity - USD ($) $ in Millions	Total	Common Stock	Additional Paid-in Capital	Accumulated Deficit	Accumulated Other Comprehensive Income/(Loss)
Beginning Balance at Jun. 30, 2018	$ 1,086.7	$ 1.3	$ 2,283.3	$ (872.1)	$ (325.8)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Cumulative effect of change in accounting for ASC 606, net of tax	15.1			15.1
Equity offering, sale of common stock,	445.3	0.1	445.2
Stock Issued During Period, Value, Stock Options Exercised	0.0	0.1	(0.1)
Stock-based compensation	24.1		24.1
Cash paid, in lieu of equity, for tax withholding	(13.3)		(13.3)
Net earnings/(loss)	66.3			66.3
Other comprehensive income/(loss), net of tax	(3.5)				(3.5)
Ending Balance at Mar. 31, 2019	1,620.7	$ 1.5	2,739.2	(790.7)	(329.3)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Equity offering, sale of common stock		11,431,400
Beginning Balance at Dec. 31, 2018	1,563.0	$ 1.5	2,735.1	(822.4)	(351.2)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Equity offering, sale of common stock,	(0.2)		(0.2)
Stock Issued During Period, Value, Stock Options Exercised	0.0
Stock-based compensation	6.6		6.6
Cash paid, in lieu of equity, for tax withholding	(2.3)		(2.3)
Net earnings/(loss)	31.7			31.7
Other comprehensive income/(loss), net of tax	21.9				21.9
Ending Balance at Mar. 31, 2019	1,620.7	$ 1.5	2,739.2	(790.7)	(329.3)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Equity offering, sale of common stock
Beginning Balance at Jun. 30, 2019	1,681.6	$ 1.5	2,757.4	(723.4)	(353.9)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Equity offering, sale of common stock,	494.2	0.1	494.1
Stock Issued During Period, Value, Stock Options Exercised	0.0
Stock-based compensation	35.5		35.5
Cash paid, in lieu of equity, for tax withholding	(25.3)		(25.3)
Non-qualified stock	(0.7)		(0.7)
Dividends, Preferred Stock	24.3			24.3
Net earnings/(loss)	66.5			66.5
Other comprehensive income/(loss), net of tax	(39.7)				(39.7)
Ending Balance at Mar. 31, 2020	2,187.7	$ 1.5	3,261.0	(681.2)	(393.6)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Equity offering, sale of common stock		8,445,900
Beginning Balance at Dec. 31, 2019	1,716.1	$ 1.5	2,759.2	(694.0)	(350.6)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Equity offering, sale of common stock,	494.2	0.1	494.1
Stock Issued During Period, Value, Stock Options Exercised	0.0
Stock-based compensation	8.6		8.6
Cash paid, in lieu of equity, for tax withholding	(0.9)		(0.9)
Dividends, Preferred Stock	8.1			8.1
Net earnings/(loss)	20.9			20.9
Other comprehensive income/(loss), net of tax	(43.0)				(43.0)
Ending Balance at Mar. 31, 2020	$ 2,187.7	$ 1.5	$ 3,261.0	$ (681.2)	$ (393.6)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Equity offering, sale of common stock		8,445,900

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Definite Lived Long-Lived Assets (Tables)

9 Months Ended

Mar. 31, 2020

Intangible Assets Disclosure [Abstract]

Other Intangible Assets Subject to Amortization

The details of other intangibles, net as of March 31, 2020 and June 30, 2019 are as follows:

(Dollars in millions)	Weighted Average Life	Gross Carrying Value		Accumulated Amortization		Net Carrying Value
March 31, 2020
Amortized intangibles:
Core technology	19 years	$	133.1	$	(80.3)	$	52.8
Customer relationships	14 years	1,016.6		(228.3)		788.3
Product relationships	11 years	268.0		(212.9)		55.1
Other	4 years	14.5		(3.4)		11.1
Total intangible assets		$	1,432.2	$	(524.9)	$	907.3

(Dollars in millions)	Weighted Average Life	Gross Carrying Value		Accumulated Amortization		Net Carrying Value
June 30, 2019
Amortized intangibles:
Core technology	18 years	$	168.2	$	(105.6)	$	62.6
Customer relationships	14 years	981.1		(182.5)		798.6
Product relationships	11 years	275.5		(213.9)		61.6
Other	4 years	9.3		(1.3)		8.0
Total intangible assets		$	1,434.1	$	(503.3)	$	930.8

Future Amortization Expense

Future amortization expense for the next five fiscal years is estimated to be:

(Dollars in millions)	Remainder  Fiscal 2020		2021		2022		2023		2024		2025
Amortization expense	$	23.0	$	91.8	$	91.2	$	90.5	$	89.9	$	89.0

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Other Income and Expense (Tables)

9 Months Ended

Mar. 31, 2020

Other Income and Expenses [Abstract]

Schedule of Other Nonoperating Income (Expense)

The components of other (income)/expense, net for the three and nine months ended March 31, 2020 and 2019 are as follows:

	Three Months Ended   March 31,				Nine Months Ended  March 31,
(Dollars in millions)	2020		2019		2020		2019
Other (income)/expense, net
Debt refinancing costs (1)	$	16.0	$	—	$	16.1	$	4.2
Foreign currency (gains) and losses (2)	(5.3)		(3.2)		(1.7)		(0.8)
Other (3)	26.0		—		22.8		0.5
Total other (income)/expense, net	$	36.7	$	(3.2)	$	37.2	$	3.9

(1) The expense in the nine months ended March 31, 2019 includes a write-off of $4.2 million of previously capitalized financing charges related to the Company's U.S. dollar-denominated term loan under its senior secured credit facility. The expense in the three months ended March 31, 2020 includes (a) a write-off of $6.0 million of previously capitalized financing charges related to the Company's recently repaid euro-denominated term loan under its senior secured credit facilities and the Company's recently redeemed euro-denominated senior notes and (b) a $10.0 million premium on early redemption of the euro notes.

(2) Foreign currency remeasurement (gains) and losses include both cash and non-cash transactions.

(3) Included within Other for the three and nine months ended March 31, 2020 are unrealized losses of $26.3 million and $24.9 million, respectively, related to the fair value of the derivative liability associated with the Series A Preferred Stock.

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Consolidated Statements of Operations - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Mar. 31, 2020	Mar. 31, 2019
Income Statement [Abstract]
Net revenue	$ 760.6	$ 617.5	$ 2,146.7	$ 1,792.3
Cost of sales	521.8	418.8	1,498.0	1,243.7
Gross margin	238.8	198.7	648.7	548.6
Selling, general, and administrative expenses	136.1	129.9	419.9	368.6
Impairment charges and (gain)/loss on sale of assets	0.6	(0.1)	2.1	2.7
Restructuring and other	1.3	3.1	2.5	12.9
Operating earnings	100.8	65.8	224.2	164.4
Interest expense, net	34.4	26.4	105.6	80.0
Other (income)/expense, net	36.7	(3.2)	37.2	3.9
Earnings from continuing operations, before income taxes	29.7	42.6	81.4	80.5
Income tax expense	8.8	10.9	14.9	14.2
Net earnings/(loss)	20.9	31.7	66.5	66.3
Participating Securities, Distributed and Undistributed Earnings (Loss), Basic	(9.1)	0.0	(27.8)	0.0
Net Income (Loss) Available to Common Stockholders, Basic	$ 11.8	$ 31.7	$ 38.7	$ 66.3
Earnings Per Share, Basic	$ 0.08	$ 0.22	$ 0.26	$ 0.46
Earnings Per Share, Diluted	$ 0.08	$ 0.22	$ 0.26	$ 0.46

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Long-Term Obligations and Other Short-Term Borrowings

9 Months Ended

Mar. 31, 2020

Debt Disclosure [Abstract]

Long-Term Obligations and Other Short-Term Borrowings

LONG-TERM OBLIGATIONS AND SHORT-TERM BORROWINGS

Long-term obligations and short-term borrowings consisted of the following at March 31, 2020 and June 30, 2019:

(Dollars in millions)	Maturity as of March 31, 2020	March 31, 2020		June 30, 2019
Senior secured credit facilities
Term loan facility U.S. dollar-denominated	May 2026	$	930.5	$	936.2
Term loan facility euro-denominated	May 2024	—		346.8
Revolving credit facility	May 2024	200.0		—
Euro-denominated 4.75% Senior Notes due 2024	December 2024	—		428.3
U.S. dollar-denominated 4.875% Senior Notes due 2026	January 2026	445.2		444.6
U.S. dollar-denominated 5.00% Senior Notes due 2027	July 2027	492.8		492.1
Euro-denominated 2.375% Senior Notes due 2028	March 2028	894.1		—
Deferred purchase consideration	October 2021	96.7		143.9
Capital lease obligations	2020 to 2044	137.1		167.3
Other obligations	2020 to 2024	2.3		0.1
Total		$	3,198.7	$	2,959.3
Less: current portion of long-term obligations and other short-term borrowings		271.8		76.5
Long-term obligations, less current portion		$	2,926.9	$	2,882.8

Euro-denominated 2.375% Senior Notes due 2028

In March 2020, Operating Company completed a private offering of €825.0 million aggregate principal amount of 2.375% Senior Notes due 2028 (the "Euro 2028 Notes"). The Euro 2028 Notes are fully and unconditionally guaranteed, jointly and severally, by all of the wholly owned U.S. subsidiaries of Operating Company that guarantee its senior secured credit facilities. The Euro 2028 Notes were offered in the U.S. to qualified institutional buyers in reliance on Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”) and outside the U.S. only to non-U.S. investors pursuant to Regulation S under the Securities Act. The Euro 2028 Notes will mature on March 1, 2028, bear interest at the rate of 2.375% per annum and are payable semi-annually in arrears on March 1 and September 1 of each year. The proceeds of the Euro 2028 Notes after payment of the offering fees and expenses were used to repay in full the outstanding borrowings under Operating Company's euro-denominated term loans under its senior secured credit agreement that mature in May 2024 and euro-denominated 4.75% Senior Notes that mature in December 2024, plus any accrued and unpaid interest thereon, with the remainder available for general corporate purposes.

Previously, the Company disclosed that the maturity date set forth in the table above for its U.S. dollar-denominated term loan was earlier than stated if any of its euro-denominated 4.75% Senior Notes was still outstanding at its maturity. Having paid off that euro debt, the exception no longer applies.

Revolving Credit Facility

The Company borrowed $200.0 million in March 2020 under Operating Company's revolving credit facility prophylactically in response to unsettled market conditions resulting from the COVID-19 pandemic to increase liquidity for general corporate purposes. Such borrowing remained outstanding as of March 31, 2020 and bore interest at the rate of 2.93% during the portion of the three months ended March 31, 2020 when such borrowing existed.

The Company also incurred interest cost of $0.4 million as a result of borrowing $100.0 million under Operating Company's revolving credit facility in January 2020, which was repaid in February 2020 from a portion of the proceeds of the

February 2020 Equity Offering. A portion of the proceeds of the January 2020 borrowing were used to pay the cash acquisition cost of land and buildings previously leased by Gene Therapy.

Deferred Purchase Consideration

In connection with the acquisition of Catalent Indiana, LLC in October 2017, $200.0 million of the $950.0 million aggregate nominal purchase price is payable in $50.0 million installments, on each of the first four anniversaries of the closing date. The Company made installment payments in October 2018 and October 2019. The balance of the deferred purchase consideration was recorded at fair value as of the acquisition date, with the difference between the remaining nominal amount and the fair value treated as imputed interest.

Fair Value of Debt Instruments

The estimated fair values of the Company's senior secured credit facilities and other senior indebtedness are classified as Level 2 in the fair value hierarchy and are calculated by using discounted cash flow models with the market interest rate as a significant input. The carrying amounts and the estimated fair values of financial instruments as of March 31, 2020 and June 30, 2019 are as follows:

		March 31, 2020				June 30, 2019
(Dollars in millions)	Fair Value Measurement	Carrying Value		Estimated Fair Value		Carrying Value		Estimated Fair Value
Euro-denominated 4.75% senior notes due 2024	Level 2	$	—	$	—	$	428.3	$	454.2
U.S. dollar-denominated 4.875% senior notes due 2026	Level 2	445.2		438.7		444.6		457.0
U.S. dollar-denominated 5.00% senior notes due 2027	Level 2	492.8		482.7		492.1		509.0
Euro-denominated 2.375% senior notes due 2028	Level 2	894.1		789.2		—		—
Senior secured credit facilities & other	Level 2	1,366.6		1,334.7		1,594.3		1,526.0
Total		$	3,198.7	$	3,045.3	$	2,959.3	$	2,946.2

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Revenue Recognition

9 Months Ended

Mar. 31, 2020

Revenue Recognition [Abstract]

Revenue from Contract with Customer [Policy Text Block]

REVENUE RECOGNITION

The Company recognizes revenue in accordance with ASC 606. The Company generally earns its revenue by supplying goods or providing services under contracts with its customers in three primary revenue streams: manufacturing and commercial product supply, development services, and clinical supply services. The Company measures the revenue from customers based on the consideration specified in its contracts, excluding any sales incentive or amount collected on behalf of a third party.

The company generally expenses sales commissions as incurred because either the amortization period is one year or less, or the balance with an amortization period greater than one year is not material.

The following tables allocate revenue, for the three and nine months ended March 31, 2020 and March 31, 2019, by type of activity and reporting segment (in millions):

Three Months Ended March 31, 2020	Softgel & Oral Technologies		Biologics		Oral & Specialty Delivery		Clinical Supply Services		Total
Manufacturing & commercial product supply	$	217.6	$	85.2	$	127.2	$	—	$	430.0
Development services	24.7		164.8		54.2		—		243.7
Clinical supply services	—		—		—		88.9		88.9
Total	$	242.3	$	250.0	$	181.4	$	88.9	$	762.6
			Inter-segment revenue elimination						(2.0)
					Combined net revenue				$	760.6

Three Months Ended March 31, 2019	Softgel & Oral Technologies		Biologics		Oral & Specialty Delivery		Clinical Supply Services		Total
Manufacturing & commercial product supply	$	232.9	$	66.8	$	99.7	$	—	$	399.4
Development services	21.1		66.9		54.1		—		142.1
Clinical supply services	—		—		—		77.8		77.8
Total	$	254.0	$	133.7	$	153.8	$	77.8	$	619.3
			Inter-segment revenue elimination						(1.8)
					Combined net revenue				$	617.5

Nine Months Ended March 31, 2020	Softgel & Oral Technologies		Biologics		Oral & Specialty Delivery		Clinical Supply Services		Total
Manufacturing & commercial product supply	$	701.5	$	229.6	$	294.5	$	—	$	1,225.6
Development services	69.3		434.2		162.7		—		666.2
Clinical supply services	—		—		—		261.4		261.4
Total	$	770.8	$	663.8	$	457.2	$	261.4	$	2,153.2
			Inter-segment revenue elimination						(6.5)
					Combined net revenue				$	2,146.7

Nine Months Ended March 31, 2019	Softgel & Oral Technologies		Biologics		Oral & Specialty Delivery		Clinical Supply Services		Total
Manufacturing & commercial product supply	$	680.8	$	168.1	$	262.4	$	—	$	1,111.3
Development services	67.7		227.7		156.7		—		452.1
Clinical supply services	—		—		—		236.3		236.3
Total	$	748.5	$	395.8	$	419.1	$	236.3	$	1,799.7
			Inter-segment revenue elimination						(7.4)
					Combined net revenue				$	1,792.3

The following table allocates revenue by the location where the goods were made or the service performed:

(Dollars in millions)	Three Months Ended March 31, 2020		Three Months Ended March 31, 2019		Nine Months Ended March 31, 2020		Nine Months Ended March 31, 2019
United States	$	438.9	$	318.4	$	1,215.9	$	913.9
Europe	258.7		200.8		690.1		609.9
International Other	83.5		108.2		299.8		321.6
Elimination of revenue attributable to multiple locations	(20.5)		(9.9)		(59.1)		(53.1)
Total	$	760.6	$	617.5	$	2,146.7	$	1,792.3

Contract Liabilities

Contract liabilities relate to cash consideration that the Company receives in advance of satisfying the related performance obligations. Changes in the contract liabilities balance during the nine months ended March 31, 2020 are as follows:

(Dollars in millions)
Contract liability
Balance at June 30, 2019	$	177.4
Balance at March 31, 2020	$	180.0
Revenue recognized in the period from:
Amounts included in contract liability at the beginning of the period	$	117.2

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Derivative Instruments and Hedging Activities

9 Months Ended

Mar. 31, 2020

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments and Hedging Activities

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

The Company is exposed to fluctuations in the applicable exchange rate on its investments in operations outside the U.S. While the Company does not actively hedge against changes in foreign currency, the Company has mitigated its exposure from its investments in its European operations by denominating a portion of its debt in euros. At March 31, 2020, the Company had euro-denominated debt outstanding of $894.1 million that is designated and qualifies as a hedge of a net investment in foreign operations. For non-derivatives designated and qualifying as net investment hedges, the translation gains or losses are reported in accumulated other comprehensive income/(loss) as part of the cumulative translation adjustment. The non-hedge portions of the euro-denominated debt translation gains or losses are reported in the consolidated statement of operations. The following table includes net investment hedge activity during the three and nine months ended March 31, 2020 and 2019.

	Three Months Ended   March 31,				Nine Months Ended   March 31,
(Dollars in millions)	2020		2019		2020		2019
Unrealized foreign exchange gain/(loss) within other      comprehensive income	$	3.7	$	5.9	$	17.5	$	17.3
Unrealized foreign exchange gain/(loss) within statement      of operations	$	1.9	$	2.9	$	7.7	$	9.8

The net accumulated gain of the instrument designated as a hedge as of March 31, 2020 within other comprehensive income/(loss) was approximately $77.3 million. Amounts are reclassified out of accumulated other comprehensive income/(loss) into earnings when the entity to which the gains and losses relate is either sold or substantially liquidated.

Refer to Note 19, Subsequent Events for details related to an interest rate swap entered into in April 2020.

2019 Derivative Liability

As discussed in Note 14, Redeemable Preferred Stock—Series A Preferred, in May 2019, the Company issued shares of Series A Preferred Stock in exchange for net proceeds of $646.3 million after taking into account the $3.7 million issuance cost.

The dividend rate used to determine the amount of the quarterly dividend payable on shares of the Series A Preferred Stock is subject to adjustment so as to provide holders of shares of Series A Preferred Stock with certain protections against a decline in the trading price of shares of Common Stock. The Company determined that this feature should be accounted for as a derivative liability, since the feature fluctuates inversely to changes in the trading price and is also linked to the performance of the S&P 500 stock index. Accordingly, the Company bifurcated the adjustable dividend feature from the remainder of the Series A Preferred Stock and accounted for this feature as a derivative liability at fair value. The Company will recognize changes in the fair value of the derivative liability in the consolidated statements of operations for each reporting period. The fair value was determined using an option pricing methodology, specifically both a Monte Carlo simulation and a binomial lattice model. The methodology incorporates the terms and conditions of the preferred stock arrangement, historical stock price volatility, the risk-free interest rate, a credit spread based on the yield indexes of high-yield bonds, and the trading price of shares of the Common Stock. The calculation of the estimated fair value of the derivative liability is highly sensitive to changes in unobservable inputs, such as the expected volatility and the Company's specific credit spread.

The Company recorded a loss of $24.9 million on the change in the estimated fair value of the derivative liability from July 1, 2019 through March 31, 2020, primarily related to the volatility in the risk-free interest rate used to estimate the fair value, which is reflected as a non-operating expense in the consolidated statements of operations. The fair value of the derivative liability as of March 31, 2020 was $51.7 million.

The fair value is classified as Level 3 in the fair value hierarchy due to the significant management judgment required for the assumptions underlying the calculation of value. The following table sets forth a summary of changes in the estimated fair value of the derivative liability:

(Dollars in millions)	Fair Value Measurements of Series A Preferred Stock Derivative Liability Using Significant Unobservable Inputs (Level 3)
Balance at July 1, 2019	$	26.8
Change in estimated fair value of Series A Preferred Stock derivative liability	24.9
Balance at March 31, 2020	$	51.7

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Supplemental Balance Sheet Information

9 Months Ended

Mar. 31, 2020

Balance Sheet Related Disclosures [Abstract]

Supplemental Balance Sheet Information

SUPPLEMENTAL BALANCE SHEET INFORMATION

Supplemental balance sheet information at March 31, 2020 and June 30, 2019 is detailed in the following tables.

Inventories

Work-in-process and inventories include raw materials, labor, and overhead. Total inventories consist of the following:

(Dollars in millions)	March 31, 2020		June 30, 2019
Raw materials and supplies	$	213.7	$	161.6
Work-in-process	108.2		115.0
Total inventories, gross	321.9		276.6
Inventory cost adjustment	(24.7)		(19.4)
Inventories	$	297.2	$	257.2

Prepaid expenses and other

Prepaid expenses and other consist of the following:

(Dollars in millions)	March 31, 2020		June 30, 2019
Prepaid expenses	$	33.1	$	18.7
Contract assets	35.6		23.3
Spare parts supplies	23.1		8.1
Prepaid income tax	11.0		10.0
Non-U.S. value-added tax	12.0		16.4
Other current assets	27.0		23.6
Prepaid expenses and other	$	141.8	$	100.1

Property, plant, and equipment, net

Property, plant, and equipment, net consist of the following:

(Dollars in millions)	March 31, 2020		June 30, 2019
Land, buildings, and improvements	$	1,174.6	$	1,049.4
Machinery, equipment, and capitalized software	1,143.5		1,104.9
Furniture and fixtures	19.2		16.9
Construction in progress	426.9		278.9
Property, plant, and equipment, at cost	2,764.2		2,450.1
Accumulated depreciation	(994.7)		(913.4)
Property, plant, and equipment, net	$	1,769.5	$	1,536.7

Depreciation expense was $41.8 million and $121.0 million for the three and nine months ended March 31, 2020, respectively, and $35.0 million and $104.8 million for the three and nine months ended March 31, 2019, respectively. Depreciation expense includes amortization of assets related to finance leases. The Company charges repairs and maintenance costs to expense as incurred. The amount of capitalized interest was immaterial for all periods presented.

Other accrued liabilities

Other accrued liabilities consist of the following:

(Dollars in millions)	March 31, 2020		June 30, 2019
Accrued employee-related expenses	$	119.2	$	103.9
Restructuring accrual	3.8		8.2
Accrued interest	12.1		11.7
Contract liability	160.2		155.2
Accrued income tax	—		8.5
Other accrued liabilities and expenses	73.8		50.9
Other accrued liabilities	$	369.1	$	338.4

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Redeemable Preferred Stock - Series A Preferred

9 Months Ended

Mar. 31, 2020

Equity [Abstract]

Preferred Stock [Text Block]

REDEEMABLE PREFERRED STOCK — SERIES A PREFERRED

During May 2019, the Company designated 1,000,000 shares of its preferred stock, par value $0.01, as its “Series A Convertible Preferred Stock” (the “Series A Preferred Stock”), pursuant to a certificate of designation of preferences, rights, and limitations (as amended, the “Certificate of Designation”) filed with the Delaware Secretary of State, and issued and sold 650,000 shares of the Series A Preferred Stock for an aggregate purchase price of $650.0 million, to affiliates of Leonard Green & Partners, L.P. (the “Series A Investors”), each share having an initial stated value of $1,000 (as such value may be adjusted in accordance with the terms of the Certificate of Designation, the “Stated Value”). The Series A Preferred Stock ranks senior to the Company’s Common Stock with respect to dividend rights and rights upon the voluntary or involuntary liquidation, dissolution, or winding up of the affairs of the Company.

Proceeds from the offering of the Series A Preferred Stock, net of stock issuance costs, were $646.3 million, which were used to fund a portion of the consideration for the Gene Therapy acquisition due at its closing. Of the net proceeds, $39.7 million was allocated to the dividend adjustment feature at its issuance and separately accounted for as a derivative liability, as disclosed in Note 10, Derivative Instruments and Hedging Activities; thus, the proceeds of the issuance were allocated as follows:

(Dollars in millions)
Issuance of Series A Preferred Stock	$	650.0
Stock issuance costs	(3.7)
Net of stock issuance costs	646.3
Derivative liability (Portion of preferred stock allocated to dividend adjustment at inception - see Note 10)	(39.7)
Net proceeds from Series A Preferred Stock issuance	$	606.6

Any change in the fair value of derivative liability is recorded as non-operating expenses in the consolidated statement of operations. See Note 10, Derivative Instruments and Hedging Activities for detail concerning the change in fair value during the three months ended March 31, 2020.

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Employee Retirement Benefit Plans - Components of Company's Net Periodic Benefit Costs (Detail) - USD ($) $ in Millions		3 Months Ended		9 Months Ended
		Mar. 31, 2020	Mar. 31, 2019	Mar. 31, 2020	Mar. 31, 2019	Jun. 30, 2019
Components of net periodic benefit cost:
Service cost		$ 0.9	$ 0.9	$ 2.3	$ 2.7
Interest cost		0.7	1.9	4.2	5.7
Expected return on plan assets		(2.5)	(2.7)	(7.8)	(7.9)
Amortization	[1]	2.6	0.6	4.1	1.8
Net amount recognized		1.7	0.7	2.8	2.3
Estimated discounted value of future employer contributions		38.7		38.7		$ 38.8
Estimated annual cash contribution		$ 1.7	$ 1.7	$ 1.7	$ 1.7

[1] Amount represents the amortization of unrecognized actuarial gains/(losses)

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Other Income and Expense (Details) - USD ($) $ in Millions		3 Months Ended				9 Months Ended
		Mar. 31, 2020		Mar. 31, 2019		Mar. 31, 2020	Mar. 31, 2019
Other Income and Expenses [Abstract]
Debt refinancing costs		16.0	[1]	—		16.1	4.2	[1]
Foreign Currency (gains) and losses	[2]	$ (5.3)		$ (3.2)		$ (1.7)	$ (0.8)
Other		26.0	[3]	0.0	[3]	22.8	0.5
Other (income)/expense, net		36.7		$ (3.2)		37.2	3.9
Write off of Deferred Debt Issuance Cost		6.0					4.2
Early Repayment of Senior Debt							10.0
Derivative, Gain (Loss) on Derivative, Net		$ (26.3)				$ (24.9)	$ 0.0

[1] The expense in the nine months ended March 31, 2019 includes a write-off of $4.2 million of previously capitalized financing charges related to the Company's U.S. dollar-denominated term loan under its senior secured credit facility. The expense in the three months ended March 31, 2020 includes (a) a write-off of $6.0 million of previously capitalized financing charges related to the Company's recently repaid euro-denominated term loan under its senior secured credit facilities and the Company's recently redeemed euro-denominated senior notes and (b) a $10.0 million premium on early redemption of the euro notes.

[2] Foreign currency remeasurement (gains) and losses include both cash and non-cash transactions.

[3] Included within Other for the three and nine months ended March 31, 2020 are unrealized losses of $26.3 million and $24.9 million, respectively, related to the fair value of the derivative liability associated with the Series A Preferred Stock

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Equity (Details) - USD ($)	May 17, 2019	Mar. 31, 2020	Jun. 30, 2019
Redeemable Preferred Stock [Line Items]
Preferred Stock, Shares Authorized		100,000,000	100,000,000
Preferred Stock, Par or Stated Value Per Share		$ 0.01	$ 0.01
Preferred Stock, Shares Issued	650,000	650,000	650,000
Preferred Stock, Value, Issued	$ 1,000
Preferred Stock, Issuance Value	650,000,000.0
Payments of Stock Issuance Costs	3,700,000
Preferred stock issuance Value, Net	646,300,000
Embedded Derivative, Estimate of Embedded Derivative Liability	39,700,000
Proceeds from Issuance of Preferred Stock and Preference Stock	606,600,000
Redeemable Preferred Stock [Member]
Redeemable Preferred Stock [Line Items]
Payments of Stock Issuance Costs	$ 3,700,000
Designated shares [Member]
Redeemable Preferred Stock [Line Items]
Preferred Stock, Shares Authorized		1,000,000

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Segment Information (Tables)

9 Months Ended

Mar. 31, 2020

Segment Reporting [Abstract]

Net Revenue by Segment

(Dollars in millions)	Three Months Ended   March 31,				Nine Months Ended   March 31,
	2020		2019		2020		2019
Net revenue:
Softgel and Oral Technologies	$	242.3	$	254.0	$	770.8	$	748.5
Biologics	250.0		133.7		663.8		395.8
Oral and Specialty Delivery	181.4		153.8		457.2		419.1
Clinical Supply Services	88.9		77.8		261.4		236.3
Inter-segment revenue elimination	(2.0)		(1.8)		(6.5)		(7.4)
Net revenue	$	760.6	$	617.5	$	2,146.7	$	1,792.3

Reconciliation of Earnings/(Loss) from Continuing Operations to EBITDA

(Dollars in millions)	Three Months Ended   March 31,				Nine Months Ended   March 31,
	2020		2019		2020		2019
Segment EBITDA reconciled to net earnings:
Softgel and Oral Technologies	$	60.1	$	56.3	$	171.0	$	152.3
Biologics	51.9		35.8		150.7		101.9
Oral and Specialty Delivery	56.2		49.0		117.0		113.9
Clinical Supply Services	24.6		20.3		70.2		61.5
Sub-Total	$	192.8	$	161.4	$	508.9	$	429.6
Reconciling items to net earnings
Unallocated costs (1)	(63.9)		(26.0)		(134.6)		(95.2)
Depreciation and amortization	(64.8)		(66.4)		(187.3)		(173.9)
Interest expense, net	(34.4)		(26.4)		(105.6)		(80.0)
Income tax expense	(8.8)		(10.9)		$	(14.9)	(14.2)
Net earnings	$	20.9	$	31.7	$	66.5	$	66.3

(1) Unallocated costs include restructuring and special items, equity-based compensation, impairment charges, certain other corporate directed costs, and other costs that are not allocated to the segments as follows:

	Three Months Ended   March 31,				Nine Months Ended   March 31,
(Dollars in millions)	2020		2019		2020		2019
Impairment charges and gain/(loss) on sale of assets	$	(0.6)	$	0.1	$	(2.1)	$	(2.7)
Stock-based compensation	(8.6)		(6.6)		(35.5)		(24.1)
Restructuring and other special items (a)	(8.9)		(16.1)		(28.6)		(35.2)
Other income/(expense), net (b)	(36.7)		3.2		(37.2)		(3.9)
Unallocated corporate costs, net	(9.1)		(6.6)		(31.2)		(29.3)
Total unallocated costs	$	(63.9)	$	(26.0)	$	(134.6)	$	(95.2)

(a) Restructuring and other special items during the nine months ended March 31, 2020 include transaction and integration costs associated with the Company’s gene and cell therapy acquisitions, the disposal of one of its sites in Australia, and other restructuring initiatives across the Company's network of sites. Restructuring and other special items during the nine months ended March 31, 2019 include transaction and integration costs associated with the acquisitions of Catalent Indiana LLC and Juniper Pharmaceuticals, Inc.

(b) Refer to Note 8, Other (income)/expense, net, for details of financing charges and foreign currency translation adjustments recorded within other income/(expense), net.

Total Assets for Each Segment and Reconciling in Consolidated Financial Statements

The following table includes total assets for each segment, as well as reconciling items necessary to total the amounts reported in the consolidated financial statements.

(Dollars in millions)	March 31, 2020		June 30, 2019
Assets
Softgel and Oral Technologies	$	1,453.7	$	1,586.5
Biologics	3,500.7		2,825.7
Oral and Specialty Delivery	1,186.4		1,098.7
Clinical Supply Services	455.1		463.2
Corporate and eliminations	483.7		209.9
Total assets	$	7,079.6	$	6,184.0

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Revenue Recognition Disaggregation of Revenue by type of activity and reporting segment (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Mar. 31, 2020	Mar. 31, 2019
Disaggregation of Revenue [Line Items]
Inter-segment revenue elimination	$ (2.0)	$ (1.8)	$ (6.5)	$ (7.4)
Net revenue	760.6	617.5	2,146.7	1,792.3
Softgel and Oral Technologies
Disaggregation of Revenue [Line Items]
Net revenue	242.3	254.0	770.8	748.5
Softgel and Oral Technologies | Manufacturing & Commercial Product Supply
Disaggregation of Revenue [Line Items]
Net revenue	217.6	232.9	701.5	680.8
Softgel and Oral Technologies | Development Services
Disaggregation of Revenue [Line Items]
Net revenue	24.7	21.1	69.3	67.7
Softgel and Oral Technologies | Clinical Supply Services
Disaggregation of Revenue [Line Items]
Net revenue	0.0	0.0	0.0	0.0
Biologics
Disaggregation of Revenue [Line Items]
Net revenue	250.0	133.7	663.8	395.8
Biologics | Manufacturing & Commercial Product Supply
Disaggregation of Revenue [Line Items]
Net revenue	85.2	66.8	229.6	168.1
Biologics | Development Services
Disaggregation of Revenue [Line Items]
Net revenue	164.8	66.9	434.2	227.7
Biologics | Clinical Supply Services
Disaggregation of Revenue [Line Items]
Net revenue	0.0	0.0	0.0	0.0
Oral and Specialty Drug Delivery
Disaggregation of Revenue [Line Items]
Net revenue	181.4	153.8	457.2	419.1
Oral and Specialty Drug Delivery | Manufacturing & Commercial Product Supply
Disaggregation of Revenue [Line Items]
Net revenue	127.2	99.7	294.5	262.4
Oral and Specialty Drug Delivery | Development Services
Disaggregation of Revenue [Line Items]
Net revenue	54.2	54.1	162.7	156.7
Oral and Specialty Drug Delivery | Clinical Supply Services
Disaggregation of Revenue [Line Items]
Net revenue	0.0	0.0	0.0	0.0
Clinical Supply Services
Disaggregation of Revenue [Line Items]
Net revenue	88.9	77.8	261.4	236.3
Clinical Supply Services | Manufacturing & Commercial Product Supply
Disaggregation of Revenue [Line Items]
Net revenue	0.0	0.0	0.0	0.0
Clinical Supply Services | Development Services
Disaggregation of Revenue [Line Items]
Net revenue	0.0	0.0	0.0	0.0
Clinical Supply Services | Clinical Supply Services
Disaggregation of Revenue [Line Items]
Net revenue	88.9	77.8	261.4	236.3
Total Catalent before inter-segment revenue elimination
Disaggregation of Revenue [Line Items]
Net revenue	762.6	619.3	2,153.2	1,799.7
Total Catalent before inter-segment revenue elimination | Manufacturing & Commercial Product Supply
Disaggregation of Revenue [Line Items]
Net revenue	430.0	399.4	1,225.6	1,111.3
Total Catalent before inter-segment revenue elimination | Development Services
Disaggregation of Revenue [Line Items]
Net revenue	243.7	142.1	666.2	452.1
Total Catalent before inter-segment revenue elimination | Clinical Supply Services
Disaggregation of Revenue [Line Items]
Net revenue	$ 88.9	$ 77.8	$ 261.4	$ 236.3

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Earnings Per Share Earnings Per Share - Additional Details (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended		9 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Mar. 31, 2020	Mar. 31, 2019	Jun. 30, 2019
Earnings Per Share [Abstract]
Common Stock, Par or Stated Value Per Share	$ 0.01		$ 0.01		$ 0.01
If-converted Shares, Common Stock			13.1
Potential common shares issuable, Restricted & Employee held	$ 0.5	$ 1.1	$ 0.6	$ 1.0

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Definite Lived Long-Lived Assets - Amortization Expense (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Mar. 31, 2020	Mar. 31, 2019
Intangible Assets Disclosure [Abstract]
Amortization expense	$ 23.0	$ 31.4	$ 66.3	$ 69.1
Remainder Fiscal 2020	23.0		23.0
2021	91.8		91.8
2022	91.2		91.2
2023	90.5		90.5
2024	89.9		89.9
2025	$ 89.0		$ 89.0

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Business Combinations Acquisition Purchase Agreement (Details) - USD ($) $ in Millions					2 Months Ended
	Feb. 10, 2020	Jan. 01, 2020	Jul. 31, 2019	May 17, 2019	Mar. 31, 2020
Novavax [Member]
Business Acquisition [Line Items]
Business Combination, Consideration Transferred			$ 18.3
Paragon [Member]
Business Acquisition [Line Items]
Business Combination, Consideration Transferred				$ 1,192.1
Anagni [Member]
Business Acquisition [Line Items]
Business Combination, Consideration Transferred		$ 55.3
Business Combination,Consideration Transferred, Net of Transitional Service Agreement		$ 52.2
MaSTherCell [Member]
Business Acquisition [Line Items]
Business Combination, Consideration Transferred	$ 323.3
Net Revenue					$ 5.1
Pre-Tax Earnings					0.5
Business Acquisition, Transaction Costs					$ 3.1

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Segment Information - Net Revenue and Segment Ebitda (Detail) - USD ($) $ in Millions		3 Months Ended		9 Months Ended
		Mar. 31, 2020	Mar. 31, 2019	Mar. 31, 2020	Mar. 31, 2019
Segment Reporting, Revenue & EBITDA Reconciling Item [Line Items]
Net revenue		$ 760.6	$ 617.5	$ 2,146.7	$ 1,792.3
Inter-segment revenue elimination		(2.0)	(1.8)	(6.5)	(7.4)
Segment Reporting Information Unallocated Expense	[1]	(63.9)	(26.0)	(134.6)	(95.2)
Softgel and Oral Technologies
Segment Reporting, Revenue & EBITDA Reconciling Item [Line Items]
Net revenue		242.3	254.0	770.8	748.5
Segment EBITDA		60.1	56.3	171.0	152.3
Biologics
Segment Reporting, Revenue & EBITDA Reconciling Item [Line Items]
Net revenue		250.0	133.7	663.8	395.8
Segment EBITDA		51.9	35.8	150.7	101.9
Oral and Specialty Drug Delivery
Segment Reporting, Revenue & EBITDA Reconciling Item [Line Items]
Net revenue		181.4	153.8	457.2	419.1
Segment EBITDA		56.2	49.0	117.0	113.9
Clinical Supply Services
Segment Reporting, Revenue & EBITDA Reconciling Item [Line Items]
Net revenue		88.9	77.8	261.4	236.3
Segment EBITDA		24.6	20.3	70.2	61.5
Total Catalent sub-total of Segment Reporting [Member]
Segment Reporting, Revenue & EBITDA Reconciling Item [Line Items]
Segment EBITDA		$ 192.8	$ 161.4	$ 508.9	$ 429.6

[1] Unallocated costs include restructuring and special items, equity-based compensation, impairment charges, certain other corporate directed costs, and other costs that are not allocated to the segments as follows:

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Supplemental Balance Sheet Information - Inventory (Detail) - USD ($) $ in Millions	Mar. 31, 2020	Jun. 30, 2019
Inventory, Net [Abstract]
Raw materials and supplies	$ 213.7	$ 161.6
Work-in-process	108.2	115.0
Total inventories, gross	321.9	276.6
Inventory cost adjustment	(24.7)	(19.4)
Inventories	$ 297.2	$ 257.2

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Other (Income)/ Expense, Net

9 Months Ended

Mar. 31, 2020

Other Income and Expenses [Abstract]

Other Income and Other Expense Disclosure [Text Block]

OTHER (INCOME)/EXPENSE, NET

The components of other (income)/expense, net for the three and nine months ended March 31, 2020 and 2019 are as follows:

	Three Months Ended   March 31,				Nine Months Ended  March 31,
(Dollars in millions)	2020		2019		2020		2019
Other (income)/expense, net
Debt refinancing costs (1)	$	16.0	$	—	$	16.1	$	4.2
Foreign currency (gains) and losses (2)	(5.3)		(3.2)		(1.7)		(0.8)
Other (3)	26.0		—		22.8		0.5
Total other (income)/expense, net	$	36.7	$	(3.2)	$	37.2	$	3.9

(1) The expense in the nine months ended March 31, 2019 includes a write-off of $4.2 million of previously capitalized financing charges related to the Company's U.S. dollar-denominated term loan under its senior secured credit facility. The expense in the three months ended March 31, 2020 includes (a) a write-off of $6.0 million of previously capitalized financing charges related to the Company's recently repaid euro-denominated term loan under its senior secured credit facilities and the Company's recently redeemed euro-denominated senior notes and (b) a $10.0 million premium on early redemption of the euro notes.

(2) Foreign currency remeasurement (gains) and losses include both cash and non-cash transactions.

(3) Included within Other for the three and nine months ended March 31, 2020 are unrealized losses of $26.3 million and $24.9 million, respectively, related to the fair value of the derivative liability associated with the Series A Preferred Stock.

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Goodwill

9 Months Ended

Mar. 31, 2020

Goodwill Disclosure [Abstract]

Goodwill

GOODWILL

The following table summarizes the changes between June 30, 2019 and March 31, 2020 in the carrying amount of goodwill in total and by reporting segment:

(Dollars in millions)	Softgel & Oral Technologies		Biologics		Oral & Specialty Delivery		Clinical Supply Services		Total
Balance at June 30, 2019	$	409.2	$	1,320.0	$	340.3	$	151.4	$	2,220.9
Additions	—		260.6		—		—		260.6
Reallocation	108.1		(124.3)		16.2		—		—
Other	(1.4)		(6.8)		1.1		—		(7.1)
Foreign currency translation adjustments	(13.0)		(1.3)		(6.0)		(4.8)		(25.1)
Balance at March 31, 2020	$	502.9	$	1,448.2	$	351.6	$	146.6	$	2,449.3

The addition to goodwill in the Biologics reporting segment relates to the Novavax and MaSTherCell transactions. See Note 3, Business Combinations. The reallocation of goodwill relates to the adjustments to the Company’s reporting segments, as a result of which certain assets moved from the Biologics reporting segment to the Oral and Specialty Delivery reporting segment, and other assets moved from the Oral and Specialty Delivery reporting segment to the Softgel and Oral Technologies reporting segment. The Company recorded no impairment charge to goodwill in the current period.

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Consolidated Balance Sheets - USD ($) $ in Millions	Mar. 31, 2020	Jun. 30, 2019
Current assets:
Cash and cash equivalents	$ 608.4	$ 345.4
Trade receivables, net	698.7	693.1
Inventories	297.2	257.2
Prepaid expenses and other	141.8	100.1
Total current assets	1,746.1	1,395.8
Property, plant, and equipment, net	1,769.5	1,536.7
Other assets:
Goodwill	2,449.3	2,220.9
Other intangibles, net	907.3	930.8
Deferred Income Tax Assets, Net	45.1	38.6
Other Assets, Noncurrent	162.3	61.2
Total assets	7,079.6	6,184.0
Current Liabilities:
Debt, Current	271.8	76.5
Accounts payable	276.2	255.8
Other accrued liabilities	369.1	338.4
Total current liabilities	917.1	670.7
Long-term obligations, less current portion	2,926.9	2,882.8
Pension liability	137.6	143.6
Deferred Income Taxes	95.6	74.4
Other liabilities	208.1	124.3
Commitments and Contingencies (see Note 16)	0.0	0.0
Total liabilities	4,285.3	3,895.8
Temporary Equity, Carrying Amount, Attributable to Parent	606.6	606.6
Common Stock, Value, Outstanding	1.5	1.5
Preferred Stock, Value, Outstanding	0.0	0.0
Additional paid in capital	3,261.0	2,757.4
Accumulated deficit	(681.2)	(723.4)
Accumulated other comprehensive income/(loss)	(393.6)	(353.9)
Total shareholders' equity	2,187.7	1,681.6
Total liabilities, redeemable preferred stock, and shareholders’ equity	$ 7,079.6	$ 6,184.0

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Business Combinations (Table)

3 Months Ended

Mar. 31, 2020

Business Acquisition [Line Items]

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block]

The preliminary purchase price allocation to assets acquired and liabilities assumed in the transaction is (in millions):

Property, plant, and equipment	$	25.5
Identifiable intangible assets	51.0
Other net assets	2.0
Deferred income tax liabilities	(13.4)
Total identifiable net assets	$	65.1
Goodwill	258.2
Total assets acquired and liabilities assumed	$	323.3

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Long-Term Obligations and Other Short-Term Borrowings Fair Value of Financial Instruments (Tables)

9 Months Ended

Mar. 31, 2020

Fair Value Disclosures [Abstract]

Schedule Of Carrying And Fair Value Of Financial Instruments Table

The carrying amounts and the estimated fair values of financial instruments as of March 31, 2020 and June 30, 2019 are as follows:

		March 31, 2020				June 30, 2019
(Dollars in millions)	Fair Value Measurement	Carrying Value		Estimated Fair Value		Carrying Value		Estimated Fair Value
Euro-denominated 4.75% senior notes due 2024	Level 2	$	—	$	—	$	428.3	$	454.2
U.S. dollar-denominated 4.875% senior notes due 2026	Level 2	445.2		438.7		444.6		457.0
U.S. dollar-denominated 5.00% senior notes due 2027	Level 2	492.8		482.7		492.1		509.0
Euro-denominated 2.375% senior notes due 2028	Level 2	894.1		789.2		—		—
Senior secured credit facilities & other	Level 2	1,366.6		1,334.7		1,594.3		1,526.0
Total		$	3,198.7	$	3,045.3	$	2,959.3	$	2,946.2

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Consolidated Statements of Cash Flows - USD ($) $ in Millions	9 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
CASH FLOWS FROM OPERATING ACTIVITIES:
Net earnings/(loss)	$ 66.5	$ 66.3
Adjustments to reconcile earnings/(loss) from operations to net cash from operations:
Depreciation and amortization	187.3	173.9
Non-cash foreign currency transaction (gain)/loss, net	2.5	(1.7)
Amortization and write-off of debt financing costs	10.7	7.1
Asset impairments charges and (gain)/loss on sale of assets	2.1	2.7
Debt Call Premium Fees	10.0	0.0
Derivative, Gain (Loss) on Derivative, Net	(24.9)	0.0
Stock-based compensation	35.5	24.1
Provision/(benefit) for deferred income taxes	(5.4)	0.7
Provision for bad debts and inventory	11.4	10.6
Change in operating assets and liabilities:
Decrease/(increase) in trade receivables	(15.5)	(26.6)
Decrease/(increase) in inventories	(54.7)	(43.1)
Increase/(decrease) in accounts payable	29.9	5.9
Other assets/accrued liabilities, net — current and non-current	(48.4)	(58.7)
Net Cash Provided by (Used in) Operating Activities, Total	267.6	159.8
CASH FLOWS FROM INVESTING ACTIVITIES:
Acquisition of property and equipment and other productive assets	(303.5)	(129.3)
Proceeds from Divestiture of Interest in Consolidated Subsidiaries	20.8	0.4
Payment for acquisitions, net of cash acquired	(379.7)	(127.5)
Payments to Acquire Investments	2.4	1.3
Net cash (used in) investing activities	(664.8)	(257.7)
CASH FLOWS FROM FINANCING ACTIVITIES:
Net change in other borrowings	(45.2)	(6.5)
Proceeds from Issuance of Debt	1,109.1	0.0
Payments related to long-term obligations	(808.9)	(508.0)
Payments of Debt Issuance Costs	25.1	0.0
Dividends and Interest Paid	28.1	0.0
Proceeds from sale of common stock, net	494.2	445.3
Cash paid, in lieu of equity, for tax withholding	(25.3)	(13.3)
Net cash (used in)/provided by financing activities	670.7	(82.5)
Effect of foreign currency exchange on cash	(10.5)	(1.9)
NET INCREASE/(DECREASE) IN CASH AND EQUIVALENTS	263.0	(182.3)
CASH AND EQUIVALENTS AT BEGINNING OF PERIOD	345.4	410.2
CASH AND EQUIVALENTS AT END OF PERIOD	608.4	227.9
SUPPLEMENTARY CASH FLOW INFORMATION:
Interest paid	88.7	74.6
Income taxes paid, net	$ 38.9	$ 35.4

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Employee Retirement Benefit Plans (Tables)

9 Months Ended

Mar. 31, 2020

Defined Benefit Plan [Abstract]

Components of Company's Net Periodic Benefit Costs

Components of the Company’s net periodic benefit costs are as follows:

	Three Months Ended   March 31,				Nine Months Ended   March 31,
(Dollars in millions)	2020		2019		2020		2019
Components of net periodic benefit cost:
Selling, general, and administrative expenses:
Service cost	$	0.9	$	0.9	$	2.3	$	2.7
Other (income)/expense, net:
Interest cost	0.7		1.9		4.2		5.7
Expected return on plan assets	(2.5)		(2.7)		(7.8)		(7.9)
Amortization (1)	2.6		0.6		4.1		1.8
Net amount recognized	$	1.7	$	0.7	$	2.8	$	2.3

(1)   Amount represents the amortization of unrecognized actuarial gains/(losses).

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Basis of Presentation and Summary of Significant Accounting Policies (Policies)

9 Months Ended

Mar. 31, 2020

Accounting Policies [Abstract]

Basis of Presentation

Basis of Presentation

The accompanying unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. Operating results for the nine months ended March 31, 2020 are not necessarily indicative of the results that may be expected for the year ending June 30, 2020. The consolidated balance sheet at June 30, 2019 has been derived from the audited consolidated financial statements at that date but does not include all of the information and footnotes required by GAAP for complete financial statements. For further information on the Company's accounting policies and footnotes, refer to the consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the year ended June 30, 2019 filed with the Securities and Exchange Commission (the “SEC”).

In the first quarter of fiscal 2020, the Company engaged in a business reorganization to better align its internal business unit structure with its “Follow the Molecule” strategy and the increased focus on its biologics-related offerings. Under the revised structure, the Company changed the components of three of its four operating segments:

•Softgel and Oral Technologies, which includes formulation, development, and clinical and commercial manufacturing of soft capsules, or “softgels”, as well as large-scale manufacturing of oral solid dose forms, for pharmaceutical and consumer health markets, and supporting ancillary services; and

•Biologics, which encompasses biologic cell-line, viral vector gene therapy, and cell therapy development and manufacturing; formulation, development, and manufacturing for parenteral dose forms, including prefilled syringes, vials, and cartridges; and analytical development and testing services for large molecules; and

•Oral and Specialty Delivery, which includes formulation, development, and small-to-medium scale manufacturing for most types of oral solid dose forms, including Zydis orally dissolving tablets; formulation, development, and manufacture of blow-fill-seal unit doses, metered dose inhalers, and nasal products; and analytical development and testing capabilities for small molecules.

Each of these three segments, along with the Company's fourth segment, Clinical Supply Services, which remains unchanged, reports through a separate management team and ultimately reports to the Company's Chief Executive Officer, who is designated as the Chief Operating Decision Maker (“CODM”) for segment reporting purposes. The Company's operating segments are the same as its reporting segments. All prior-period comparative segment information has been restated to reflect the current reportable segments in accordance with Accounting Standards Codification ("ASC") 280, Segment Reporting, promulgated by the Financial Accounting Standards Board (the “FASB”).

Reclassification, Policy

Reclassification

Certain prior-period amounts were reclassified to conform to the current period presentation. Contract assets previously presented in trade receivables, net are now presented in prepaid expenses and other, which amounts are further detailed in Note 18, Supplemental Balance Sheet Information.

Foreign Currency Translation

Foreign Currency Translation

The financial statements of the Company’s operations are generally measured using the local currency as the functional currency. Adjustments to translate the assets and liabilities of operations outside the U.S. into U.S. dollars are accumulated as a component of other comprehensive income/(loss) utilizing period-end exchange rates. Since July 1, 2018, the Company has accounted for its Argentine operations as highly inflationary.

Research and Development Costs

Research and Development Costs

The Company expenses research and development costs as incurred. Costs incurred in connection with the development of new offerings and manufacturing process improvements are recorded within selling, general, and administrative expenses. Such research and development costs included in selling, general, and administrative expenses amounted to $0.6 million and $1.8 million for the three and nine months ended March 31, 2020, respectively, and $0.9 million and $2.4 million for the three and nine months ended March 31, 2019, respectively. Costs incurred in connection with research and development services the Company provides to customers and services performed in support of the commercial manufacturing process for customers are recorded within cost of sales. Such research and development costs included in cost of sales amounted to $15.8 million and $44.3 million for the three and nine months ended March 31, 2020, respectively, and $11.8 million and $37.4 million for the three and nine months ended March 31, 2019, respectively.

Recent Financial Accounting Standards

Recent Financial Accounting Standards

Recently Adopted Accounting Standards

In February 2016, the FASB issued Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842), which supersedes ASC 840, Leases. The new guidance requires lessees to recognize most leases on their balance sheets for the rights and obligations created by those leases. The guidance requires enhanced disclosures regarding the amount, timing, and uncertainty of cash flows arising from leases and became effective for public reporting entities in annual reporting periods beginning after December 15, 2018 and interim periods within those fiscal years. The guidance requires adoption of the new standard using the modified retrospective approach. The Company adopted the guidance on July 1, 2019 and elected the transition method that allows for the application of the standard at the adoption date rather than at the beginning of the earliest comparative period presented in the financial statements. The Company also elected the package of practical expedients; as a result, it did not reassess: (i) whether any expired or existing contract is or contains a lease, (ii) whether any expired or existing lease requires capitalization under the new guidance, and (iii) the initial direct cost for any existing lease. The Company also elected (x) not to reassess lease terms using hindsight and (y) to combine lease and non-lease components within a single lease agreement. Upon adoption, the Company recognized $46 million of lease liabilities and a corresponding amount for right-of-use assets on its consolidated balance sheet. The adoption of the guidance did not have any effect on the Company’s consolidated statements of operations or cash flows. Refer to Note 15, Leases for further discussion of the Company's lease accounting policy.

New Accounting Standards Not Adopted as of March 31, 2020

In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides optional guidance to ease the potential burden in accounting for the discontinuation of a reference rate such as LIBOR, formerly known as the London Interbank Offered Rate, because of reference rate reform. The expedients and exceptions provided by the guidance do not apply to contract modifications made and hedging relationships entered into or evaluated after December 31, 2022. The ASU is effective for all entities as of March 12, 2020 through December 31, 2022. The Company is currently evaluating the impact of adopting this guidance on its consolidated financial statements.

In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, which eliminates certain exceptions related to the incremental approach for intraperiod allocation, deferred tax recognition requirement for changes in equity method investments and foreign subsidiaries, and methodology for calculating income taxes in an interim period. The guidance also simplifies certain aspects of the accounting for franchise taxes, the accounting for step-up in the tax basis of goodwill, and accounting for the change in the enacted change in tax laws or rates. The ASU will be effective for fiscal years beginning after December 15, 2020 and interim periods within those fiscal years. The Company is currently evaluating the impact of adopting this guidance on its consolidated financial statements.

In August 2018, the FASB issued ASU 2018-15, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract, which aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The ASU will be effective for fiscal years beginning after December 15, 2019 and interim periods within those fiscal years and allows for either retrospective or prospective application. The Company does not expect the adoption of this guidance to have a material impact on its consolidated financial statements.

In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirement for Fair Value Measurement, which changes the disclosure requirements on fair value measurements in Topic 820. The guidance eliminates certain disclosure requirements that are no longer considered cost

beneficial and adds new disclosure requirement for Level 3 fair value measurements. The ASU will be effective for fiscal years beginning after December 15, 2019 and interim periods within those fiscal years. The Company does not expect the adoption of this guidance to have a material impact on its consolidated financial statements.In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which introduces a new accounting model known as Credit Expected Credit Losses (“CECL”). CECL requires earlier recognition of credit losses on financial assets, while also providing additional transparency about credit risk. The CECL model utilizes a lifetime expected credit loss measurement objective for the recognition of credit losses for financial assets at the time they are originated or acquired. The expected credit losses are adjusted each period for changes in expected lifetime credit losses. This model replaces the multiple existing impairment models in current GAAP, which generally require that a loss be incurred before it is recognized. The new standard will apply to receivables arising from revenue transactions such as contract assets and accounts receivables. The ASU will be effective for fiscal years beginning after December 15, 2019. The Company does not expect the adoption of the guidance to have a material impact on its consolidated financial statements.

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Commitments and Contingencies

9 Months Ended

Mar. 31, 2020

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

COMMITMENTS AND CONTINGENCIES

From time to time, the Company may be involved in legal proceedings arising in the ordinary course of business, including, without limitation, inquiries and claims concerning environmental contamination as well as litigation and allegations in connection with acquisitions, product liability, manufacturing or packaging defects, and claims for reimbursement for the cost of lost or damaged active pharmaceutical ingredients, the cost of any of which could be significant. The Company intends to vigorously defend itself against any such litigation and does not currently believe that the outcome of any such litigation will have a material adverse effect on the Company’s consolidated financial statements. In addition, the healthcare industry is highly regulated and government agencies continue to scrutinize certain practices affecting government programs and otherwise.

From time to time, the Company receives subpoenas or requests for information relating to the business practices and activities of customers or suppliers from various governmental agencies or private parties, including from state attorneys general, the U.S. Department of Justice, and private parties engaged in patent infringement, antitrust, tort, and other litigation. The Company generally responds to such subpoenas and requests in a timely and thorough manner, which responses sometimes require considerable time and effort and can result in considerable costs being incurred. The Company expects to incur costs in future periods in connection with future requests.

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Employee Retirement Benefit Plans

9 Months Ended

Mar. 31, 2020

Defined Benefit Plan [Abstract]

Employee Retirement Benefit Plans

EMPLOYEE RETIREMENT BENEFIT PLANS

Components of the Company’s net periodic benefit costs are as follows:

	Three Months Ended   March 31,				Nine Months Ended   March 31,
(Dollars in millions)	2020		2019		2020		2019
Components of net periodic benefit cost:
Selling, general, and administrative expenses:
Service cost	$	0.9	$	0.9	$	2.3	$	2.7
Other (income)/expense, net:
Interest cost	0.7		1.9		4.2		5.7
Expected return on plan assets	(2.5)		(2.7)		(7.8)		(7.9)
Amortization (1)	2.6		0.6		4.1		1.8
Net amount recognized	$	1.7	$	0.7	$	2.8	$	2.3

(1)   Amount represents the amortization of unrecognized actuarial gains/(losses).

As previously disclosed, the Company notified the trustees of a multi-employer pension plan of its withdrawal from participation in such plan in fiscal 2012. The actuarial review process administered by the plan trustees ended in fiscal 2015. The liability reported reflects the present value of the Company's expected future long-term obligations. The estimated discounted value of the projected contributions related to such plans was $38.7 million and $38.8 million as of March 31, 2020 and June 30, 2019, respectively, and is included within pension liability on the consolidated balance sheets. The annual cash impact associated with the Company's obligations in such plan is approximately $1.7 million per year.

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Equity (Tables)

9 Months Ended

Mar. 31, 2020

Equity [Abstract]

Schedule of Redeemable Preferred Stock

the proceeds of the issuance were allocated as follows:

(Dollars in millions)
Issuance of Series A Preferred Stock	$	650.0
Stock issuance costs	(3.7)
Net of stock issuance costs	646.3
Derivative liability (Portion of preferred stock allocated to dividend adjustment at inception - see Note 10)	(39.7)
Net proceeds from Series A Preferred Stock issuance	$	606.6

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Basis of Presentation and Summary of Significant Accounting Policies Research and Development Expense (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Mar. 31, 2020	Mar. 31, 2019
Selling, General and Administrative Expenses
Research and Development Expense [Line Items]
Research and Development Expense	$ 0.6	$ 0.9	$ 1.8	$ 2.4
Cost of Sales
Research and Development Expense [Line Items]
Research and Development Expense	$ 15.8	$ 11.8	$ 44.3	$ 37.4

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Revenue Recognition Contractual Liabilities (Details) - USD ($) $ in Millions	9 Months Ended
	Mar. 31, 2020	Jun. 30, 2019
Revenue Recognition and Deferred Revenue [Abstract]
Contract with Customer, Liability	$ 180.0	$ 177.4
Contract with Customer, Liability, Revenue Recognized	$ 117.2

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Equity and Accumulated Other Comprehensive Income (Loss) - Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Mar. 31, 2020	Mar. 31, 2019
Foreign currency translation adjustments:
Net investment hedge	$ 3.7	$ 5.9	$ 17.5	$ 17.3
Long-term intercompany loans	(26.9)	17.1	(15.3)	3.0
Translation adjustments	(20.5)	0.9	(42.5)	(20.9)
Total foreign currency translation adjustment, pretax	(43.7)	23.9	(40.3)	(0.6)
Tax expense/(benefit)	(0.6)	2.4	2.5	4.3
Total foreign currency translation adjustment, net of tax	(43.1)	21.5	(42.8)	(4.9)
Net change in minimum pension liability
Net gain/(loss) recognized during the period	(1.2)	(0.6)	(4.1)	(1.9)
Total pension liability, pretax	1.2	0.6	4.1	1.9
Tax expense/(benefit)	1.1	0.2	1.0	0.5
Net change in minimum pension liability, net of tax	$ 0.1	$ 0.4	$ 3.1	$ 1.4

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Derivative Instruments and Hedging Activities - Additional Information (Detail) - USD ($) $ in Millions		3 Months Ended		9 Months Ended
	May 17, 2019	Mar. 31, 2020	Mar. 31, 2019	Mar. 31, 2020	Mar. 31, 2019	Jun. 30, 2019
Derivative [Line Items]
Total long-term debt		$ 3,198.7		$ 3,198.7		$ 2,959.3
Unrealized foreign exchange gain/(loss) within other comprehensive income		3.7	$ 5.9	17.5	$ 17.3
Unrealized foreign exchange gain/(loss) within statement of operations		1.9	$ 2.9	7.7	9.8
Net accumulated gain related to investment hedges				77.3
Proceeds from Issuance of Redeemable Preferred Stock	$ 646.3
Payments of Stock Issuance Costs	$ 3.7
Derivative Liability						$ 26.8
Derivative, Gain (Loss) on Derivative, Net		(26.3)		(24.9)	$ 0.0
Embedded Derivative, Fair Value of Embedded Derivative Liability		51.7		51.7
Euro Denominated Debt Outstanding [Member]
Derivative [Line Items]
Total long-term debt		$ 894.1		$ 894.1

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Segment Information

9 Months Ended

Mar. 31, 2020

Segment Reporting [Abstract]

Segment Information

SEGMENT INFORMATIONAs disclosed in Note 1, Basis of Presentation and Summary of Significant Accounting Policies, the Company now conducts its business within the following operating segments: Softgel and Oral Technologies, Biologics, Oral and Specialty Delivery, and Clinical Supply Services. The Company evaluates the performance of its segments based on segment earnings before other (expense)/income, impairments, restructuring costs, interest expense, income tax expense/(benefit), and depreciation and amortization (“Segment EBITDA”). “EBITDA from operations” is consolidated earnings from operations

before interest expense, income tax expense/(benefit), and depreciation and amortization. Segment EBITDA and EBITDA from operations are not defined in GAAP and may not be comparable to similarly titled measures used by other companies.

The following tables include net revenue and Segment EBITDA for each of the Company's current reporting segments during the three and nine months ended March 31, 2020 and 2019:

(Dollars in millions)	Three Months Ended   March 31,				Nine Months Ended   March 31,
	2020		2019		2020		2019
Net revenue:
Softgel and Oral Technologies	$	242.3	$	254.0	$	770.8	$	748.5
Biologics	250.0		133.7		663.8		395.8
Oral and Specialty Delivery	181.4		153.8		457.2		419.1
Clinical Supply Services	88.9		77.8		261.4		236.3
Inter-segment revenue elimination	(2.0)		(1.8)		(6.5)		(7.4)
Net revenue	$	760.6	$	617.5	$	2,146.7	$	1,792.3

(Dollars in millions)	Three Months Ended   March 31,				Nine Months Ended   March 31,
	2020		2019		2020		2019
Segment EBITDA reconciled to net earnings:
Softgel and Oral Technologies	$	60.1	$	56.3	$	171.0	$	152.3
Biologics	51.9		35.8		150.7		101.9
Oral and Specialty Delivery	56.2		49.0		117.0		113.9
Clinical Supply Services	24.6		20.3		70.2		61.5
Sub-Total	$	192.8	$	161.4	$	508.9	$	429.6
Reconciling items to net earnings
Unallocated costs (1)	(63.9)		(26.0)		(134.6)		(95.2)
Depreciation and amortization	(64.8)		(66.4)		(187.3)		(173.9)
Interest expense, net	(34.4)		(26.4)		(105.6)		(80.0)
Income tax expense	(8.8)		(10.9)		$	(14.9)	(14.2)
Net earnings	$	20.9	$	31.7	$	66.5	$	66.3

(1) Unallocated costs include restructuring and special items, equity-based compensation, impairment charges, certain other corporate directed costs, and other costs that are not allocated to the segments as follows:

	Three Months Ended   March 31,				Nine Months Ended   March 31,
(Dollars in millions)	2020		2019		2020		2019
Impairment charges and gain/(loss) on sale of assets	$	(0.6)	$	0.1	$	(2.1)	$	(2.7)
Stock-based compensation	(8.6)		(6.6)		(35.5)		(24.1)
Restructuring and other special items (a)	(8.9)		(16.1)		(28.6)		(35.2)
Other income/(expense), net (b)	(36.7)		3.2		(37.2)		(3.9)
Unallocated corporate costs, net	(9.1)		(6.6)		(31.2)		(29.3)
Total unallocated costs	$	(63.9)	$	(26.0)	$	(134.6)	$	(95.2)

(a) Restructuring and other special items during the nine months ended March 31, 2020 include transaction and integration costs associated with the Company’s gene and cell therapy acquisitions, the disposal of one of its sites in Australia, and other restructuring initiatives across the Company's network of sites. Restructuring and other special items during the nine months ended March 31, 2019 include transaction and integration costs associated with the acquisitions of Catalent Indiana LLC and Juniper Pharmaceuticals, Inc.

(b) Refer to Note 8, Other (income)/expense, net, for details of financing charges and foreign currency translation adjustments recorded within other income/(expense), net.

The following table includes total assets for each segment, as well as reconciling items necessary to total the amounts reported in the consolidated financial statements.

(Dollars in millions)	March 31, 2020		June 30, 2019
Assets
Softgel and Oral Technologies	$	1,453.7	$	1,586.5
Biologics	3,500.7		2,825.7
Oral and Specialty Delivery	1,186.4		1,098.7
Clinical Supply Services	455.1		463.2
Corporate and eliminations	483.7		209.9
Total assets	$	7,079.6	$	6,184.0

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Equity and Accumulated Other Comprehensive Income (Loss)

9 Months Ended

Mar. 31, 2020

Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]

Accumulated Other Comprehensive Income (Loss)

EQUITY AND ACCUMULATED OTHER COMPREHENSIVE INCOME/(LOSS)

Recent Public Offering of Common Stock

On February 6, 2020, the Company completed the February 2020 Equity Offering, in which the Company sold 8.4 million shares of Common Stock at a price of $58.58 per share, net of underwriting discounts and commissions. The Company obtained total net proceeds from the February 2020 Equity Offering of $494.2 million. The net proceeds of the February 2020 Equity Offering were used to repay $100.0 million of borrowings earlier in the quarter under Operating Company's revolving credit facility and the consideration for the MaSTherCell acquisition due at its closing, with the remainder available for general corporate purpose.

Outstanding Stock

Shares of Common Stock outstanding include shares of unvested restricted stock. Unvested restricted stock included in reportable shares outstanding was 0.5 million shares as of March 31, 2020. Shares of unvested restricted stock are excluded from the calculation of basic weighted average shares outstanding, but their dilutive impact is added back in the calculation of diluted weighted average shares outstanding, except when the effect would be anti-dilutive.

The Company has 650,000 shares of its preferred stock outstanding. See Note 14, Redeemable Preferred Stock—Series A Preferred.

Stock Repurchase Program

On October 29, 2015, the Company’s Board of Directors authorized a share repurchase program to use up to $100.0 million to repurchase shares of outstanding Common Stock. Under the program, the Company is authorized to repurchase shares through open market purchases, privately negotiated transactions, or otherwise as permitted by applicable federal securities laws. There has been no purchase pursuant to this program as of March 31, 2020.

Accumulated Other Comprehensive Income/(loss)

The components of the changes in the cumulative translation adjustment, minimum pension liability, and available for sale investment for the three and nine months ended March 31, 2020 and 2019 are presented below.

	Three Months Ended   March 31,				Nine Months Ended   March 31,
(Dollars in millions)	2020		2019		2020		2019
Foreign currency translation adjustments:
Net investment hedge	$	3.7	$	5.9	$	17.5	$	17.3
Long-term intercompany loans	(26.9)		17.1		(15.3)		3.0
Translation adjustments	(20.5)		0.9		(42.5)		(20.9)
Total foreign currency translation adjustment, pretax	(43.7)		23.9		(40.3)		(0.6)
Tax expense/(benefit)	(0.6)		2.4		2.5		4.3
Total foreign currency translation adjustment, net of tax	$	(43.1)	$	21.5	$	(42.8)	$	(4.9)
Net change in minimum pension liability
Net loss recognized during the period	$	1.2	$	0.6	$	4.1	$	1.9
Total pension liability, pretax	1.2		0.6		4.1		1.9
Tax expense/(benefit)	1.1		0.2		1.0		0.5
Net change in minimum pension liability, net of tax	$	0.1	$	0.4	$	3.1	$	1.4

For the three months ended March 31, 2020, the changes in accumulated other comprehensive income/(loss), net of tax by component are as follows:

(Dollars in millions)	Foreign Exchange Translation Adjustments		Pension and Liability Adjustments		Other		Total
Balance at December 31, 2019	$	(303.4)	$	(46.1)	$	(1.1)	$	(350.6)
Other comprehensive income before reclassifications	(43.1)		—		—		(43.1)
Amounts reclassified from accumulated other comprehensive income	—		0.1		—		0.1
Net current period other comprehensive income	(43.1)		0.1		—		(43.0)
Balance at March 31, 2020	$	(346.5)	$	(46.0)	$	(1.1)	$	(393.6)

For the nine months ended March 31, 2020, the changes in accumulated other comprehensive income/(loss), net of tax by component are as follows:

(Dollars in millions)	Foreign Exchange Translation Adjustments		Pension and Liability Adjustments		Other		Total
Balance at June 30, 2019	$	(303.7)	$	(49.1)	$	(1.1)	$	(353.9)
Other comprehensive income before reclassifications	(42.8)		—		—		(42.8)
Amounts reclassified from accumulated other comprehensive income	—		3.1		—		3.1
Net current period other comprehensive income	(42.8)		3.1		—		(39.7)
Balance at March 31, 2020	$	(346.5)	$	(46.0)	$	(1.1)	$	(393.6)

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Revenue Recognition Revenue Recognition (Tables)

9 Months Ended

Mar. 31, 2020

Geographical [Member]

Disaggregation of Revenue [Line Items]

Disaggregation of Revenue

The following table allocates revenue by the location where the goods were made or the service performed:

(Dollars in millions)	Three Months Ended March 31, 2020		Three Months Ended March 31, 2019		Nine Months Ended March 31, 2020		Nine Months Ended March 31, 2019
United States	$	438.9	$	318.4	$	1,215.9	$	913.9
Europe	258.7		200.8		690.1		609.9
International Other	83.5		108.2		299.8		321.6
Elimination of revenue attributable to multiple locations	(20.5)		(9.9)		(59.1)		(53.1)
Total	$	760.6	$	617.5	$	2,146.7	$	1,792.3

Product and Service[Member]

Disaggregation of Revenue [Line Items]

Disaggregation of Revenue

The following tables allocate revenue, for the three and nine months ended March 31, 2020 and March 31, 2019, by type of activity and reporting segment (in millions):

Three Months Ended March 31, 2020	Softgel & Oral Technologies		Biologics		Oral & Specialty Delivery		Clinical Supply Services		Total
Manufacturing & commercial product supply	$	217.6	$	85.2	$	127.2	$	—	$	430.0
Development services	24.7		164.8		54.2		—		243.7
Clinical supply services	—		—		—		88.9		88.9
Total	$	242.3	$	250.0	$	181.4	$	88.9	$	762.6
			Inter-segment revenue elimination						(2.0)
					Combined net revenue				$	760.6

Three Months Ended March 31, 2019	Softgel & Oral Technologies		Biologics		Oral & Specialty Delivery		Clinical Supply Services		Total
Manufacturing & commercial product supply	$	232.9	$	66.8	$	99.7	$	—	$	399.4
Development services	21.1		66.9		54.1		—		142.1
Clinical supply services	—		—		—		77.8		77.8
Total	$	254.0	$	133.7	$	153.8	$	77.8	$	619.3
			Inter-segment revenue elimination						(1.8)
					Combined net revenue				$	617.5

Nine Months Ended March 31, 2020	Softgel & Oral Technologies		Biologics		Oral & Specialty Delivery		Clinical Supply Services		Total
Manufacturing & commercial product supply	$	701.5	$	229.6	$	294.5	$	—	$	1,225.6
Development services	69.3		434.2		162.7		—		666.2
Clinical supply services	—		—		—		261.4		261.4
Total	$	770.8	$	663.8	$	457.2	$	261.4	$	2,153.2
			Inter-segment revenue elimination						(6.5)
					Combined net revenue				$	2,146.7

Nine Months Ended March 31, 2019	Softgel & Oral Technologies		Biologics		Oral & Specialty Delivery		Clinical Supply Services		Total
Manufacturing & commercial product supply	$	680.8	$	168.1	$	262.4	$	—	$	1,111.3
Development services	67.7		227.7		156.7		—		452.1
Clinical supply services	—		—		—		236.3		236.3
Total	$	748.5	$	395.8	$	419.1	$	236.3	$	1,799.7
			Inter-segment revenue elimination						(7.4)
					Combined net revenue				$	1,792.3

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Revenue Recognition Disaggregation of Revenue by Geography (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Mar. 31, 2020	Mar. 31, 2019
Disaggregation of Revenue [Line Items]
Elimination of revenue attributable to multiple locations	$ (20.5)	$ (9.9)	$ (59.1)	$ (53.1)
Net revenue	760.6	617.5	2,146.7	1,792.3
United States
Disaggregation of Revenue [Line Items]
Net revenue	438.9	318.4	1,215.9	913.9
Europe
Disaggregation of Revenue [Line Items]
Net revenue	258.7	200.8	690.1	609.9
International Other
Disaggregation of Revenue [Line Items]
Net revenue	$ 83.5	$ 108.2	$ 299.8	$ 321.6

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Equity and Accumulated Other Comprehensive Income (Loss) (Tables)

9 Months Ended

Mar. 31, 2020

Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]

Schedule of Comprehensive Income (Loss)

Accumulated Other Comprehensive Income/(loss)

The components of the changes in the cumulative translation adjustment, minimum pension liability, and available for sale investment for the three and nine months ended March 31, 2020 and 2019 are presented below.

	Three Months Ended   March 31,				Nine Months Ended   March 31,
(Dollars in millions)	2020		2019		2020		2019
Foreign currency translation adjustments:
Net investment hedge	$	3.7	$	5.9	$	17.5	$	17.3
Long-term intercompany loans	(26.9)		17.1		(15.3)		3.0
Translation adjustments	(20.5)		0.9		(42.5)		(20.9)
Total foreign currency translation adjustment, pretax	(43.7)		23.9		(40.3)		(0.6)
Tax expense/(benefit)	(0.6)		2.4		2.5		4.3
Total foreign currency translation adjustment, net of tax	$	(43.1)	$	21.5	$	(42.8)	$	(4.9)
Net change in minimum pension liability
Net loss recognized during the period	$	1.2	$	0.6	$	4.1	$	1.9
Total pension liability, pretax	1.2		0.6		4.1		1.9
Tax expense/(benefit)	1.1		0.2		1.0		0.5
Net change in minimum pension liability, net of tax	$	0.1	$	0.4	$	3.1	$	1.4

Schedule of Accumulated Other Comprehensive Income (Loss)

For the three months ended March 31, 2020, the changes in accumulated other comprehensive income/(loss), net of tax by component are as follows:

(Dollars in millions)	Foreign Exchange Translation Adjustments		Pension and Liability Adjustments		Other		Total
Balance at December 31, 2019	$	(303.4)	$	(46.1)	$	(1.1)	$	(350.6)
Other comprehensive income before reclassifications	(43.1)		—		—		(43.1)
Amounts reclassified from accumulated other comprehensive income	—		0.1		—		0.1
Net current period other comprehensive income	(43.1)		0.1		—		(43.0)
Balance at March 31, 2020	$	(346.5)	$	(46.0)	$	(1.1)	$	(393.6)

For the nine months ended March 31, 2020, the changes in accumulated other comprehensive income/(loss), net of tax by component are as follows:

(Dollars in millions)	Foreign Exchange Translation Adjustments		Pension and Liability Adjustments		Other		Total
Balance at June 30, 2019	$	(303.7)	$	(49.1)	$	(1.1)	$	(353.9)
Other comprehensive income before reclassifications	(42.8)		—		—		(42.8)
Amounts reclassified from accumulated other comprehensive income	—		3.1		—		3.1
Net current period other comprehensive income	(42.8)		3.1		—		(39.7)
Balance at March 31, 2020	$	(346.5)	$	(46.0)	$	(1.1)	$	(393.6)

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Supplemental Balance Sheet Information (Tables)

9 Months Ended

Mar. 31, 2020

Balance Sheet Related Disclosures [Abstract]

Inventory

Inventories

Work-in-process and inventories include raw materials, labor, and overhead. Total inventories consist of the following:

(Dollars in millions)	March 31, 2020		June 30, 2019
Raw materials and supplies	$	213.7	$	161.6
Work-in-process	108.2		115.0
Total inventories, gross	321.9		276.6
Inventory cost adjustment	(24.7)		(19.4)
Inventories	$	297.2	$	257.2

Prepaid and Other Assets

Prepaid expenses and other

Prepaid expenses and other consist of the following:

(Dollars in millions)	March 31, 2020		June 30, 2019
Prepaid expenses	$	33.1	$	18.7
Contract assets	35.6		23.3
Spare parts supplies	23.1		8.1
Prepaid income tax	11.0		10.0
Non-U.S. value-added tax	12.0		16.4
Other current assets	27.0		23.6
Prepaid expenses and other	$	141.8	$	100.1

Property and Equipment

Property, plant, and equipment, net

Property, plant, and equipment, net consist of the following:

(Dollars in millions)	March 31, 2020		June 30, 2019
Land, buildings, and improvements	$	1,174.6	$	1,049.4
Machinery, equipment, and capitalized software	1,143.5		1,104.9
Furniture and fixtures	19.2		16.9
Construction in progress	426.9		278.9
Property, plant, and equipment, at cost	2,764.2		2,450.1
Accumulated depreciation	(994.7)		(913.4)
Property, plant, and equipment, net	$	1,769.5	$	1,536.7

Other Accrued Liabilities

Other accrued liabilities

Other accrued liabilities consist of the following:

(Dollars in millions)	March 31, 2020		June 30, 2019
Accrued employee-related expenses	$	119.2	$	103.9
Restructuring accrual	3.8		8.2
Accrued interest	12.1		11.7
Contract liability	160.2		155.2
Accrued income tax	—		8.5
Other accrued liabilities and expenses	73.8		50.9
Other accrued liabilities	$	369.1	$	338.4

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Equity and Accumulated Other Comprehensive Income (Loss) - Rollforward (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Mar. 31, 2020	Mar. 31, 2019
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning Balance	$ (350.6)		$ (353.9)
Other comprehensive income/(loss) before reclassifications	(43.1)		(42.8)
Amounts reclassified from accumulated other comprehensive income/(loss)	0.1		3.1
Total foreign currency translation adjustment, net of tax	(43.1)	$ 21.5	(42.8)	$ (4.9)
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, after Tax	0.1	0.4	3.1	1.4
Other comprehensive income/(loss), net of tax	(43.0)	$ 21.9	(39.7)	$ (3.5)
Ending Balance	(393.6)		(393.6)
Accumulated Translation Adjustment [Member]
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning Balance	(303.4)		(303.7)
Other comprehensive income/(loss) before reclassifications	(43.1)		(42.8)
Amounts reclassified from accumulated other comprehensive income/(loss)	0.0		0.0
Total foreign currency translation adjustment, net of tax	(43.1)		(42.8)
Ending Balance	(346.5)		(346.5)
Accumulated Defined Benefit Plans Adjustment [Member]
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning Balance	(46.1)		(49.1)
Other comprehensive income/(loss) before reclassifications	0.0		0.0
Amounts reclassified from accumulated other comprehensive income/(loss)	0.1		3.1
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, after Tax	(0.1)		(3.1)
Ending Balance	(46.0)		(46.0)
Available-for-sale Securities [Member]
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning Balance	(1.1)		(1.1)
Other comprehensive income/(loss) before reclassifications	0.0		0.0
Amounts reclassified from accumulated other comprehensive income/(loss)	0.0		0.0
Available for sale investments	0.0		0.0
Ending Balance	$ (1.1)		$ (1.1)

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Income Taxes - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Mar. 31, 2020	Mar. 31, 2019	Jun. 30, 2019
Income Tax Disclosure [Abstract]
Unrecognized Tax Benefits, Including Income Tax Penalties and Interest Accrued	$ 4.7		$ 4.7		$ 5.2
Unrecognized tax benefits that impact the effective income tax rate	3.6		3.6		$ 3.8
Income tax expense(benefit)	8.8	$ 10.9	14.9	$ 14.2
Earnings from continuing operations, before income taxes	$ 29.7	$ 42.6	$ 81.4	$ 80.5

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Long-Term Obligations and Other Short-Term Borrowings - Long-Term Obligations, Presented Net of Issue Discounts and Fees Paid to Lenders, and Other Short-Term Borrowings (Detail) € in Millions, $ in Millions	3 Months Ended
	Mar. 31, 2020 USD ($)	Mar. 31, 2020 EUR (€)	Feb. 28, 2020 USD ($)	Jun. 30, 2019 USD ($)
Schedule Of Debt [Line Items]
Total long-term debt	$ 3,198.7			$ 2,959.3
Debt, Current	271.8			76.5
Long-term obligations, less current portion	2,926.9			2,882.8
Term loan facility U.S. dollar-denominated
Schedule Of Debt [Line Items]
Total long-term debt	930.5			936.2
Term loan facility euro-denominated
Schedule Of Debt [Line Items]
Total long-term debt	0.0			346.8
Revolving Credit Facility - Two
Schedule Of Debt [Line Items]
Total long-term debt	$ 200.0		$ 100.0	0.0
Debt Instrument, Interest Rate, Stated Percentage	2.93%	2.93%
Interest Costs Incurred	$ 0.4
Four Point Seven Five Percent Senior Euro Denominated Notes [Member]
Schedule Of Debt [Line Items]
Debt Instrument, Interest Rate, Stated Percentage	4.75%	4.75%
2.375% Senior Euro Denominated Notes [Member]
Schedule Of Debt [Line Items]
Total long-term debt | €		€ 825.0
Debt Instrument, Interest Rate, Stated Percentage	2.375%	2.375%
Deferred purchase consideration
Schedule Of Debt [Line Items]
Total long-term debt	$ 96.7			143.9
Capital lease obligations
Schedule Of Debt [Line Items]
Total long-term debt	137.1			167.3
Other obligations
Schedule Of Debt [Line Items]
Total long-term debt	2.3			0.1
Carrying Value [Member]
Schedule Of Debt [Line Items]
Debt Instrument, Fair Value Disclosure	3,198.7			2,959.3
Fair Value, Inputs, Level 2 [Member] | Carrying Value [Member] | Four Point Seven Five Percent Senior Euro Denominated Notes [Member]
Schedule Of Debt [Line Items]
Debt Instrument, Fair Value Disclosure	0.0			428.3
Fair Value, Inputs, Level 2 [Member] | Carrying Value [Member] | U.S. dollar-denominated 4.875% Senior Notes due 2026
Schedule Of Debt [Line Items]
Debt Instrument, Fair Value Disclosure	445.2			444.6
Fair Value, Inputs, Level 2 [Member] | Carrying Value [Member] | U.S Dollar-denominated 5.00% Senior Notes [Member]
Schedule Of Debt [Line Items]
Debt Instrument, Fair Value Disclosure	492.8			492.1
Fair Value, Inputs, Level 2 [Member] | Carrying Value [Member] | 2.375% Senior Euro Denominated Notes [Member]
Schedule Of Debt [Line Items]
Debt Instrument, Fair Value Disclosure	$ 894.1			$ 0.0

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Business Combinations Net Assets Acquired (Details) - USD ($) $ in Millions	Feb. 10, 2020	Jan. 01, 2020	Sep. 30, 2019	Jul. 31, 2019
Novavax [Member]
Net Assets Acquired from Business Combinations
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment				$ 15.6
Business Acquisition, Goodwill, Expected Tax Deductible Amount				2.4
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Inventory				$ 0.3
Paragon [Member]
Net Assets Acquired from Business Combinations
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Cash and Equivalents			$ 7.6
Anagni [Member]
Net Assets Acquired from Business Combinations
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment		$ 34.2
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Inventory		7.0
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Prepaid Expense and Other Assets		$ 12.4
MaSTherCell [Member]
Net Assets Acquired from Business Combinations
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment	$ 25.5
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles	51.0
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill	2.0
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Liabilities	13.4
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net	65.1
Business Acquisition, Goodwill, Expected Tax Deductible Amount	258.2
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net	323.3
MaSTherCell [Member] | Customer-Related Intangible Assets [Member]
Net Assets Acquired from Business Combinations
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles	$ 46.3

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Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended		9 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Mar. 31, 2020	Mar. 31, 2019
Earnings Per Share [Abstract]
Net earnings/(loss)	$ 20.9	$ 31.7	$ 66.5	$ 66.3
Participating Securities, Distributed and Undistributed Earnings (Loss), Basic	(9.1)	0.0	(27.8)	0.0
Net Income (Loss) Available to Common Stockholders, Basic	$ 11.8	$ 31.7	$ 38.7	$ 66.3
Weighted average shares outstanding	151,267,795	145,145,310	147,647,548	143,896,635
Dilutive securities issuable-stock plans	1,787,847	1,612,961	1,843,559	1,696,575
Total weighted average diluted shares outstanding	153,055,642	146,758,271	149,491,107	145,593,210
Earnings Per Share, Basic	$ 0.08	$ 0.22	$ 0.26	$ 0.46
Earnings Per Share, Diluted	$ 0.08	$ 0.22	$ 0.26	$ 0.46

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Leases - Schedule of Maturities of Operating And Finance Lease Liabilities (Details) $ in Millions	Mar. 31, 2020 USD ($)
Leases [Abstract]
Finance Lease, Liability, Payments, Remainder of Fiscal Year	$ 5.9
Finance Lease, Liability, Payments, Due Year Two	21.6
Finance Lease, Liability, Payments, Due Year Three	19.3
Finance Lease, Liability, Payments, Due Year Four	18.0
Finance Lease, Liability, Payments, Due Year Five	17.0
Finance Lease, Liability, Payments, Due after Year Five	142.4
Finance Lease, Liability, Payment, Due	224.2
Finance Lease, Liability, Undiscounted Excess Amount	87.1
Finance Lease, Liability	137.1
Lessee, Operating Lease, Liability, Payments, Remainder of Fiscal Year	4.4
Lessee, Operating Lease, Liability, Payments, Due Year Two	17.5
Lessee, Operating Lease, Liability, Payments, Due Year Three	16.6
Lessee, Operating Lease, Liability, Payments, Due Year Four	16.1
Lessee, Operating Lease, Liability, Payments, Due Year Five	12.1
Lessee, Operating Lease, Liability, Payments, Due after Year Five	43.5
Lessee, Operating Lease, Liability, Payments, Due	110.2
Lessee, Operating Lease, Liability, Undiscounted Excess Amount	21.7
Operating Lease, Liability	88.5
Total Lease Liability Payments Remainder Of Fiscal Year	10.3
Total Lease Liability Payments Due Year Two	39.1
Total Lease Liability Payments Due Year Three	35.9
Total Lease Liability Payments Due Year Four	34.1
Total Lease Liability Payments Due Year Five	29.1
Total Lease Liability Payments Due After Year Five	185.9
Total Lease Liability Payments Due	334.4
Total Lease Liability Undiscounted Excess Amount	108.8
Total Lease Liability	$ 225.6

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Segment Information - Total Assets for Each Segment and Reconciling in Consolidated Financial Statements (Detail) - USD ($) $ in Millions	Mar. 31, 2020	Jun. 30, 2019
Segment Reporting, Asset Reconciling Item [Line Items]
Total assets	$ 7,079.6	$ 6,184.0
Softgel and Oral Technologies
Segment Reporting, Asset Reconciling Item [Line Items]
Total assets	1,453.7	1,586.5
Biologics
Segment Reporting, Asset Reconciling Item [Line Items]
Total assets	3,500.7	2,825.7
Oral and Specialty Drug Delivery
Segment Reporting, Asset Reconciling Item [Line Items]
Total assets	1,186.4	1,098.7
Clinical Supply Services
Segment Reporting, Asset Reconciling Item [Line Items]
Total assets	455.1	463.2
Corporate and Eliminations [Member]
Segment Reporting, Asset Reconciling Item [Line Items]
Total assets	$ 483.7	$ 209.9

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Restructuring and Other Costs	9 Months Ended
	Mar. 31, 2020
Restructuring and Related Activities [Abstract]
Restructuring and Related Activities Disclosure [Text Block]	RESTRUCTURING AND OTHER COSTS From time to time, the Company has implemented plans to restructure certain operations, both domestically and internationally. The restructuring plans focused on various aspects of operations, including closing and consolidating certain manufacturing operations, rationalizing headcount and aligning operations in a strategic and more cost-efficient structure. In addition, the Company may incur restructuring charges in the future in cases where a material change in the scope of operation with its business occurs. Employee-related costs consist primarily of severance costs and also include outplacement services provided to employees who have been involuntarily terminated and duplicate payroll costs during transition periods. Facility exit and other costs consist of accelerated depreciation, equipment relocation costs and costs associated with planned facility expansions and closures to streamline Company operations. The restructuring costs for the three and nine months ended March 31, 2020 were $1.3 million and $2.5 million, respectively, and for the three and nine months ended March 31, 2019 were $3.1 million and $12.9 million, respectively.

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Definite Lived Long-Lived Assets

9 Months Ended

Mar. 31, 2020

Intangible Assets Disclosure [Abstract]

Definite Lived Long-Lived Assets

DEFINITE-LIVED LONG-LIVED ASSETS

The Company’s definite-lived long-lived assets include property, plant, and equipment as well as intangible assets with definite lives. Refer to Note 16, Supplemental Balance Sheet Information for details related to property, plant, and equipment.

The details of other intangibles, net as of March 31, 2020 and June 30, 2019 are as follows:

(Dollars in millions)	Weighted Average Life	Gross Carrying Value		Accumulated Amortization		Net Carrying Value
March 31, 2020
Amortized intangibles:
Core technology	19 years	$	133.1	$	(80.3)	$	52.8
Customer relationships	14 years	1,016.6		(228.3)		788.3
Product relationships	11 years	268.0		(212.9)		55.1
Other	4 years	14.5		(3.4)		11.1
Total intangible assets		$	1,432.2	$	(524.9)	$	907.3

(Dollars in millions)	Weighted Average Life	Gross Carrying Value		Accumulated Amortization		Net Carrying Value
June 30, 2019
Amortized intangibles:
Core technology	18 years	$	168.2	$	(105.6)	$	62.6
Customer relationships	14 years	981.1		(182.5)		798.6
Product relationships	11 years	275.5		(213.9)		61.6
Other	4 years	9.3		(1.3)		8.0
Total intangible assets		$	1,434.1	$	(503.3)	$	930.8

The decreases in the gross carrying value of core technology and product relationships as of March 31, 2020 compared to the prior-year period are associated with the sale of an intangible property licensing right and the disposal from the sale of the Company’s facility in Braeside, Australia.

Amortization expense was $23.0 million and $66.3 million for the three and nine months ended March 31, 2020, respectively, and $31.4 million and $69.1 million for the three and nine months ended March 31, 2019, respectively. Future amortization expense for the next five fiscal years is estimated to be:

(Dollars in millions)	Remainder  Fiscal 2020		2021		2022		2023		2024		2025
Amortization expense	$	23.0	$	91.8	$	91.2	$	90.5	$	89.9	$	89.0

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Basis of Presentation and Summary of Significant Accounting Policies

9 Months Ended

Mar. 31, 2020

Accounting Policies [Abstract]

Basis of Presentation and Summary of Significant Accounting Policies

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Business

Catalent, Inc. (“Catalent” or the “Company”) directly and wholly owns PTS Intermediate Holdings LLC (“Intermediate Holdings”). Intermediate Holdings directly and wholly owns Catalent Pharma Solutions, Inc. (“Operating Company”). The financial results of Catalent are comprised of the financial results of Operating Company and its subsidiaries on a consolidated basis.

Basis of Presentation

The accompanying unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. Operating results for the nine months ended March 31, 2020 are not necessarily indicative of the results that may be expected for the year ending June 30, 2020. The consolidated balance sheet at June 30, 2019 has been derived from the audited consolidated financial statements at that date but does not include all of the information and footnotes required by GAAP for complete financial statements. For further information on the Company's accounting policies and footnotes, refer to the consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the year ended June 30, 2019 filed with the Securities and Exchange Commission (the “SEC”).

In the first quarter of fiscal 2020, the Company engaged in a business reorganization to better align its internal business unit structure with its “Follow the Molecule” strategy and the increased focus on its biologics-related offerings. Under the revised structure, the Company changed the components of three of its four operating segments:

•Softgel and Oral Technologies, which includes formulation, development, and clinical and commercial manufacturing of soft capsules, or “softgels”, as well as large-scale manufacturing of oral solid dose forms, for pharmaceutical and consumer health markets, and supporting ancillary services; and

•Biologics, which encompasses biologic cell-line, viral vector gene therapy, and cell therapy development and manufacturing; formulation, development, and manufacturing for parenteral dose forms, including prefilled syringes, vials, and cartridges; and analytical development and testing services for large molecules; and

•Oral and Specialty Delivery, which includes formulation, development, and small-to-medium scale manufacturing for most types of oral solid dose forms, including Zydis orally dissolving tablets; formulation, development, and manufacture of blow-fill-seal unit doses, metered dose inhalers, and nasal products; and analytical development and testing capabilities for small molecules.

Each of these three segments, along with the Company's fourth segment, Clinical Supply Services, which remains unchanged, reports through a separate management team and ultimately reports to the Company's Chief Executive Officer, who is designated as the Chief Operating Decision Maker (“CODM”) for segment reporting purposes. The Company's operating segments are the same as its reporting segments. All prior-period comparative segment information has been restated to reflect the current reportable segments in accordance with Accounting Standards Codification ("ASC") 280, Segment Reporting, promulgated by the Financial Accounting Standards Board (the “FASB”).

Reclassification

Certain prior-period amounts were reclassified to conform to the current period presentation. Contract assets previously presented in trade receivables, net are now presented in prepaid expenses and other, which amounts are further detailed in Note 18, Supplemental Balance Sheet Information.

Foreign Currency Translation

The financial statements of the Company’s operations are generally measured using the local currency as the functional currency. Adjustments to translate the assets and liabilities of operations outside the U.S. into U.S. dollars are accumulated as a component of other comprehensive income/(loss) utilizing period-end exchange rates. Since July 1, 2018, the Company has accounted for its Argentine operations as highly inflationary.

Research and Development Costs

The Company expenses research and development costs as incurred. Costs incurred in connection with the development of new offerings and manufacturing process improvements are recorded within selling, general, and administrative expenses. Such research and development costs included in selling, general, and administrative expenses amounted to $0.6 million and $1.8 million for the three and nine months ended March 31, 2020, respectively, and $0.9 million and $2.4 million for the three and nine months ended March 31, 2019, respectively. Costs incurred in connection with research and development services the Company provides to customers and services performed in support of the commercial manufacturing process for customers are recorded within cost of sales. Such research and development costs included in cost of sales amounted to $15.8 million and $44.3 million for the three and nine months ended March 31, 2020, respectively, and $11.8 million and $37.4 million for the three and nine months ended March 31, 2019, respectively.

Recent Financial Accounting Standards

Recently Adopted Accounting Standards

In February 2016, the FASB issued Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842), which supersedes ASC 840, Leases. The new guidance requires lessees to recognize most leases on their balance sheets for the rights and obligations created by those leases. The guidance requires enhanced disclosures regarding the amount, timing, and uncertainty of cash flows arising from leases and became effective for public reporting entities in annual reporting periods beginning after December 15, 2018 and interim periods within those fiscal years. The guidance requires adoption of the new standard using the modified retrospective approach. The Company adopted the guidance on July 1, 2019 and elected the transition method that allows for the application of the standard at the adoption date rather than at the beginning of the earliest comparative period presented in the financial statements. The Company also elected the package of practical expedients; as a result, it did not reassess: (i) whether any expired or existing contract is or contains a lease, (ii) whether any expired or existing lease requires capitalization under the new guidance, and (iii) the initial direct cost for any existing lease. The Company also elected (x) not to reassess lease terms using hindsight and (y) to combine lease and non-lease components within a single lease agreement. Upon adoption, the Company recognized $46 million of lease liabilities and a corresponding amount for right-of-use assets on its consolidated balance sheet. The adoption of the guidance did not have any effect on the Company’s consolidated statements of operations or cash flows. Refer to Note 15, Leases for further discussion of the Company's lease accounting policy.

New Accounting Standards Not Adopted as of March 31, 2020

In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides optional guidance to ease the potential burden in accounting for the discontinuation of a reference rate such as LIBOR, formerly known as the London Interbank Offered Rate, because of reference rate reform. The expedients and exceptions provided by the guidance do not apply to contract modifications made and hedging relationships entered into or evaluated after December 31, 2022. The ASU is effective for all entities as of March 12, 2020 through December 31, 2022. The Company is currently evaluating the impact of adopting this guidance on its consolidated financial statements.

In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, which eliminates certain exceptions related to the incremental approach for intraperiod allocation, deferred tax recognition requirement for changes in equity method investments and foreign subsidiaries, and methodology for calculating income taxes in an interim period. The guidance also simplifies certain aspects of the accounting for franchise taxes, the accounting for step-up in the tax basis of goodwill, and accounting for the change in the enacted change in tax laws or rates. The ASU will be effective for fiscal years beginning after December 15, 2020 and interim periods within those fiscal years. The Company is currently evaluating the impact of adopting this guidance on its consolidated financial statements.

In August 2018, the FASB issued ASU 2018-15, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract, which aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The ASU will be effective for fiscal years beginning after December 15, 2019 and interim periods within those fiscal years and allows for either retrospective or prospective application. The Company does not expect the adoption of this guidance to have a material impact on its consolidated financial statements.

In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirement for Fair Value Measurement, which changes the disclosure requirements on fair value measurements in Topic 820. The guidance eliminates certain disclosure requirements that are no longer considered cost

beneficial and adds new disclosure requirement for Level 3 fair value measurements. The ASU will be effective for fiscal years beginning after December 15, 2019 and interim periods within those fiscal years. The Company does not expect the adoption of this guidance to have a material impact on its consolidated financial statements.In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which introduces a new accounting model known as Credit Expected Credit Losses (“CECL”). CECL requires earlier recognition of credit losses on financial assets, while also providing additional transparency about credit risk. The CECL model utilizes a lifetime expected credit loss measurement objective for the recognition of credit losses for financial assets at the time they are originated or acquired. The expected credit losses are adjusted each period for changes in expected lifetime credit losses. This model replaces the multiple existing impairment models in current GAAP, which generally require that a loss be incurred before it is recognized. The new standard will apply to receivables arising from revenue transactions such as contract assets and accounts receivables. The ASU will be effective for fiscal years beginning after December 15, 2019. The Company does not expect the adoption of the guidance to have a material impact on its consolidated financial statements.

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Derivative Instruments and Hedging Activities Net Investment Hedge Activity (Tables)

9 Months Ended

Mar. 31, 2020

Derivative Instruments and Hedging Activities Disclosures [Line Items]

Schedule of Net Investment Hedge in Accumulated Other Comprehensive Income (Loss) and Statement of Financial Performance

The following table includes net investment hedge activity during the three and nine months ended March 31, 2020 and 2019.

	Three Months Ended   March 31,				Nine Months Ended   March 31,
(Dollars in millions)	2020		2019		2020		2019
Unrealized foreign exchange gain/(loss) within other      comprehensive income	$	3.7	$	5.9	$	17.5	$	17.3
Unrealized foreign exchange gain/(loss) within statement      of operations	$	1.9	$	2.9	$	7.7	$	9.8

Schedule of Derivative Liabilities at Fair Value [Table Text Block]

The following table sets forth a summary of changes in the estimated fair value of the derivative liability:

(Dollars in millions)	Fair Value Measurements of Series A Preferred Stock Derivative Liability Using Significant Unobservable Inputs (Level 3)
Balance at July 1, 2019	$	26.8
Change in estimated fair value of Series A Preferred Stock derivative liability	24.9
Balance at March 31, 2020	$	51.7

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Revenue Recognition Contractual Liabilities (Tables)

9 Months Ended

Mar. 31, 2020

Revenue Recognition and Deferred Revenue [Abstract]

Contractual Liabilities

Changes in the contract liabilities balance during the nine months ended March 31, 2020 are as follows:

(Dollars in millions)
Contract liability
Balance at June 30, 2019	$	177.4
Balance at March 31, 2020	$	180.0
Revenue recognized in the period from:
Amounts included in contract liability at the beginning of the period	$	117.2

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Consolidated Balance Sheets (Parenthetical) - $ / shares	Mar. 31, 2020	Jun. 30, 2019
Statement of Financial Position [Abstract]
Common Stock, Par or Stated Value Per Share	$ 0.01	$ 0.01
Common Stock, Shares Authorized	1,000,000,000	1,000,000,000
Common stock, shares issued (shares)	154,867,791	145,738,286
Common Stock, Shares, Outstanding	154,867,791	145,738,286
Preferred Stock, Par or Stated Value Per Share	$ 0.01	$ 0.01
Preferred Stock, Shares Authorized	100,000,000	100,000,000
Preferred Stock, Shares Issued	650,000	650,000
Preferred Stock, Shares Outstanding	0	0

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Document and Entity Information - shares	9 Months Ended
	Mar. 31, 2020	May 01, 2020
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2020
Document Transition Report	false
Entity File Number	001-36587
Entity Registrant Name	Catalent, Inc.
Entity Incorporation, State or Country Code	DE
Entity Address, State or Province	NJ
Entity Tax Identification Number	20-8737688
Entity Address, Address Line One	14 Schoolhouse Road,
Entity Address, City or Town	Somerset,
Entity Address, Postal Zip Code	08873
City Area Code	(732)
Local Phone Number	537-6200
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Title of 12(b) Security	Common Stock
Trading Symbol	CTLT
Security Exchange Name	NYSE
Amendment Flag	false
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q3
Entity Central Index Key	0001596783
Current Fiscal Year End Date	--06-30
Entity Common Stock, Shares Outstanding (shares)		154,897,515

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Long-Term Obligations and Other Short-Term Borrowings (Tables)

9 Months Ended

Mar. 31, 2020

Debt Disclosure [Abstract]

Long-Term Obligations, Presented Net of Issue Discounts and Fees Paid to Lenders, and Other Short-Term Borrowings

Long-term obligations and short-term borrowings consisted of the following at March 31, 2020 and June 30, 2019:

(Dollars in millions)	Maturity as of March 31, 2020	March 31, 2020		June 30, 2019
Senior secured credit facilities
Term loan facility U.S. dollar-denominated	May 2026	$	930.5	$	936.2
Term loan facility euro-denominated	May 2024	—		346.8
Revolving credit facility	May 2024	200.0		—
Euro-denominated 4.75% Senior Notes due 2024	December 2024	—		428.3
U.S. dollar-denominated 4.875% Senior Notes due 2026	January 2026	445.2		444.6
U.S. dollar-denominated 5.00% Senior Notes due 2027	July 2027	492.8		492.1
Euro-denominated 2.375% Senior Notes due 2028	March 2028	894.1		—
Deferred purchase consideration	October 2021	96.7		143.9
Capital lease obligations	2020 to 2044	137.1		167.3
Other obligations	2020 to 2024	2.3		0.1
Total		$	3,198.7	$	2,959.3
Less: current portion of long-term obligations and other short-term borrowings		271.8		76.5
Long-term obligations, less current portion		$	2,926.9	$	2,882.8