Segment Information

12 Months Ended

Jun. 30, 2020

Segment Reporting [Abstract]

Segment Reporting Disclosure [Text Block]

SEGMENT AND GEOGRAPHIC INFORMATION

As discussed in Note 1, Basis of Presentation and Summary of Significant Accounting Policies, the Company conducts its business within the following 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 revenue and segment earnings before non-controlling interest, other (income)/expense, impairments, restructuring costs, interest expense, income tax (benefit)/expense, and depreciation and amortization (“Segment EBITDA”). The Company considers its reporting segments results in the context of a similar Company-wide measure: EBITDA from operations, which the Company defines as consolidated earnings from operations before interest expense, income tax (benefit)/expense, depreciation and amortization, adjusted for the income or loss attributable to non-controlling interest. Neither Segment EBITDA nor EBITDA from operations is defined under U.S. GAAP, and neither is a measure of operating income, operating performance, or liquidity presented in accordance with U.S. GAAP. Each of these non-GAAP measures is subject to important limitations. This Note to the consolidated financial statements includes information concerning Segment EBITDA and EBITDA from operations (a) because Segment EBITDA and EBITDA from operations are operational measures used by management in the assessment of the operating segments, the allocation of resources to the segments, and the setting of strategic goals and annual goals for the segments, and (b) in order to provide supplemental information that the Company considers relevant for the readers of the consolidated financial statements, but such information is not meant to replace or supersede U.S. GAAP measures. The Company’s presentation of Segment EBITDA and EBITDA from operations may not be comparable to similarly titled measures used by other companies. The most directly comparable U.S. GAAP measure to EBITDA from operations is net earnings/(loss). Included in this Note is a reconciliation of net earnings/(loss) to EBITDA from operations.

The following tables include net revenue and Segment EBITDA for each of the Company's current reporting segments during the fiscal years ended June 30, 2020, 2019, and 2018 (restated in accordance with ASC 280, Segment Reporting; see Note 1, Basis of Presentation and Summary of Significant Accounting Policies concerning the reorganization of the reporting segments during fiscal 2020):

(Dollars in millions)	Fiscal Year Ended June 30,
	2020		2019		2018
Net revenue:
Softgel and Oral Technologies	$	1,062.0	$	1,039.2	$	1,114.5
Biologics	1,021.6		573.3		437.0
Oral and Specialty Delivery	675.9		597.7		503.3
Clinical Supply Services	345.0		321.4		430.4
Inter-segment revenue elimination	(10.2)		(13.6)		(21.8)
Net revenue	$	3,094.3	$	2,518.0	$	2,463.4

(Dollars in millions)	Fiscal Year Ended June 30,
	2020		2019		2018
Segment EBITDA reconciled to net earnings:
Softgel and Oral Technologies	$	256.5	$	236.3	$	275.1
Biologics	237.6		146.9		111.1
Oral and Specialty Delivery	200.8		175.1		129.9
Clinical Supply Services	91.2		84.4		76.2
Sub-Total	$	786.1	$	642.7	$	592.3
Reconciling items to net earnings
Unallocated costs (1)	(145.9)		(142.9)		(138.8)
Depreciation and amortization	(253.7)		(228.6)		(190.1)
Interest expense, net	(126.1)		(110.9)		(111.4)
Income tax expense	(39.7)		(22.9)		(68.4)
Net earnings	$	220.7	$	137.4	$	83.6

(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:

(Dollars in millions)	Fiscal Year Ended June 30,
	2020		2019		2018
Impairment charges and gain/(loss) on sale of assets	$	(5.5)	$	(5.1)	$	(8.7)
Equity compensation	(48.1)		(33.3)		(27.2)
Restructuring and other special items (a)	(42.2)		(57.7)		(54.4)
Other income/(expense), net (b)	(7.9)		(2.7)		(5.5)
Non-allocated corporate costs, net	(42.2)		(44.1)		(43.0)
Total unallocated costs	$	(145.9)	$	(142.9)	$	(138.8)

(a) Restructuring and other special items during fiscal 2020 include transaction and integration costs associated with the Company’s Biologics acquisitions, the disposal of its site in Australia, and other restructuring initiatives across the Company's network of sites.

Restructuring and other special items during fiscal 2019 include transaction and integration costs associated with the acquisitions of Paragon and Juniper Pharmaceuticals, Inc. Restructuring and other special items during fiscal 2018 also include transaction and integration costs associated with the acquisition of Catalent Indiana.

(b) Refer to Note 15, 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 balance sheets.

Total Assets

(Dollars in millions)	June 30, 2020		June 30, 2019
Softgel and Oral Technologies	$	1,501.8	$	1,586.5
Biologics	3,775.0		2,825.7
Oral and Specialty Delivery	1,247.4		1,098.7
Clinical Supply Services	451.2		463.2
Corporate and eliminations	801.1		209.9
Total assets	$	7,776.5	$	6,184.0

The following tables include depreciation and amortization expense and capital expenditures for the fiscal years ended June 30, 2020, 2019, and 2018 for each segment, as well as reconciling items necessary to total the amounts reported in the consolidated statements of operations:

Depreciation and Amortization Expense

(Dollars in millions)	Fiscal Year Ended June 30,
	2020		2019		2018
Softgel and Oral Technologies	$	46.1	$	54.1	$	59.0
Biologics	112.0		65.4		44.7
Oral and Specialty Delivery	55.1		69.7		49.3
Clinical Supply Services	18.8		18.8		19.5
Corporate	21.7		20.6		17.6
Total depreciation and amortization expense	$	253.7	$	228.6	$	190.1

Capital Expenditures

(Dollars in millions)	Fiscal Year Ended June 30,
	2020		2019		2018
Softgel and Oral Technologies	$	53.6	$	82.5	$	65.8
Biologics	329.6		79.3		42.0
Oral and Specialty Delivery	55.4		29.2		28.9
Clinical Supply Services	10.0		2.9		11.5
Corporate	17.2		24.2		28.3
Total capital expenditures	$	465.8	$	218.1	$	176.5

The following table presents long-lived assets⁽¹⁾ by geographic area:  

	Long-Lived Assets (1)
(Dollars in millions)	June 30, 2020		June 30, 2019
United States	$	1,396.0	$	1,066.0
Europe	404.5		344.4
International Other	100.3		126.3
Total	$	1,900.8	$	1,536.7

(1)  Long-lived assets include property, plant, and equipment, net of accumulated depreciation.