XML 51 R22.htm IDEA: XBRL DOCUMENT v3.24.2.u1
Segment Information
 12 Months Ended
Jun. 30, 2024
Segment Reporting [Abstract]  
Segment Reporting Disclosure [Text Block] SEGMENT AND GEOGRAPHIC INFORMATION
The CODM evaluates the performance and allocates resources based upon a number of factors, the primary being its segment earnings before other (income) expense, impairments, restructuring costs, interest expense, income tax expense, and depreciation and amortization (“Segment EBITDA”).
Segment EBITDA is subject to important limitations. These consolidated financial statements include information concerning Segment EBITDA (a) because Segment EBITDA is an operational measure 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. The Company’s presentation of Segment EBITDA may not be comparable to similarly titled measures used by other companies.
The following table includes Segment EBITDA for each of the Company’s current reporting segments during the fiscal years ended June 30, 2024, 2023, and 2022:
(Dollars in millions)Fiscal Year Ended June 30,
202420232022
Segment EBITDA reconciled to net (loss) earnings:
Biologics$272 $277 $777 
Pharma and Consumer Health597 548 589 
Subtotal$869 $825 $1,366 
Reconciling items to net (loss) earnings
Unallocated costs (1)
$(1,153)$(559)$(286)
Depreciation and amortization(489)(422)(378)
Interest expense, net(254)(186)(123)
Income tax benefit (expense)(16)86 (80)
Net (loss) earnings$(1,043)$(256)$499 
(1)    Unallocated costs include restructuring and special items, stock-based compensation, gain (loss) on sale of subsidiary, 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,
202420232022
Impairment charges and gain/loss on sale of assets (a)
$(29)$(98)$(31)
Stock-based compensation(68)(35)(54)
Restructuring and other special items (b)
(178)(98)(55)
Pension settlement charges(12)— — 
Goodwill impairment charges (c)
(687)(210)— 
Gain on sale of subsidiary— — 1 
Other (expense) income, net (d)
(24)7 (28)
Non-allocated corporate costs, net(155)(125)(119)
Total unallocated costs$(1,153)$(559)$(286)
(a)    Impairment charges and gain/loss on sale of assets for the fiscal year ended June 30, 2024 includes right-of-use asset impairment charges associated with under utilized facilities in our Biologics segment, obsolete equipment that could not be sold or repurposed in our Biologics segment and under utilized suites from a canceled project in our Pharma and Consumer Health segment.
For the fiscal year ended June 30, 2023, impairment charges are primarily associated with an idle facility in the Biologics segment and obsolete equipment that could not be sold or repurposed in the Pharma and Consumer Health segment. Further detail is provided below.
For the fiscal year ended June 30, 2023, the Company identified an indicator of impairment related to one of its facilities in the Biologics segment given the plans to pause any additional spend on site development due to a lack of demand, leading to a partial impairment charge of $54 million. The Company primarily utilized a market and income approach for real property and a cost approach for personal property to record the partial impairment on its idle facility. Impairment charges are recorded in Other operating expense in the consolidated statements of operations.
Also, in the fiscal year ended June 30, 2023, the Company identified an indicator of impairment related to obsolete equipment from a terminated project in the Pharma and Consumer Health segment, leading to a full impairment charge of $18 million.     
For the fiscal year ended June 30, 2022, impairment charges are primarily due to fixed asset impairment charges associated with dedicated equipment for a product the Company no longer manufactures in its Pharma and Consumer Health segment and obsolete equipment in its Biologics segment.
(b)    Restructuring and other special items during the fiscal year ended June 30, 2024 include restructuring charges associated with plans to reduce costs, consolidate facilities, and optimize our infrastructure across the organization. For further details on restructuring charges, see Note 6, Restructuring Costs to the Consolidated Financial Statements.
Restructuring and other special items for the fiscal year ended June 30, 2023 includes (i) restructuring charges associated with plans to reduce costs, consolidate facilities, and optimize our infrastructure across the organization and (ii) transaction and integration costs associated with the Metrics acquisition
Restructuring and other special items for the fiscal year ended June 30, 2022 include (i) transaction and integration costs primarily associated with the Princeton, Bettera Wellness, Delphi, Hepatic, Acorda, and RheinCell transactions and (ii) unrealized losses on venture capital investments.
(c)    Goodwill impairment charges during the fiscal year ended June 30, 2024 were associated with the Company’s Consumer Health and Biomodalities reporting units, which are part of the Company’s Pharma and Consumer Health and Biologics segments, respectively. For further details, see Note 4, Goodwill to the Consolidated Financial Statements.
The goodwill impairment charges for the fiscal year ended June 30, 2023 was associated with the Company’s Consumer Health reporting unit. For further details, see Note 4, Goodwill.
(d)    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, 2024June 30, 2023
Biologics$5,326 $5,746 
Pharma and Consumer Health4,643 4,867 
Corporate and eliminations(216)164 
Total assets$9,753 $10,777 
Capital Expenditures
Fiscal Year Ended June 30,
(Dollars in millions)202420232022
Biologics$171 $346 $453 
Pharma and Consumer Health164 214 183 
Corporate16 34 30 
Total capital expenditures (1)
$351 $594 $666 
(1)    Include both cash and non-cash capital expenditures  
Long Lived Assets

The following table presents long-lived assets—consisting of property, plant, and equipment, net of accumulated depreciation—by geographic area:
(Dollars in millions)June 30, 2024June 30, 2023
United States$2,625 $2,758 
Europe828 765 
Other190 159 
Total$3,643 $3,682 
 [1]
[1] Refer to Note 15, Other (income) expense, net for details of financing charges and foreign currency translation adjustments recorded within other (income) expense, net.