SEGMENT INFORMATION

3 Months Ended

Jan. 31, 2017

Segment Reporting [Abstract]

SEGMENT INFORMATION

SEGMENT INFORMATION

The Company’s four operating segments are: North America DPS, Europe DPS, PDS and DSS. The North America DPS and Europe DPS operating segments meet the aggregation criteria to be presented as one DPS reportable segment. As a result, the Company has three reportable segments: DPS, PDS and DSS. Costs relating to Corporate operations are classified as Other.

The DPS segment includes commercial manufacturing outsourcing services, the PDS segment includes pharmaceutical development services, and the DSS segment includes active pharmaceutical ingredients and pharmaceutical intermediates. Corporate expenses primarily relate to general, administrative and sales and marketing expenses related to the corporate organization. These expenses are centrally directed and controlled and are not included in internal measures of segment operating performance. The CODM does not evaluate its operating segments using discrete asset information.

	Three months ended January 31, 2017
	DPS	PDS	DSS	Other		Total
	$	$	$	$		$
Revenues	275.2	52.3	129.9	—		457.4
Adjusted EBITDA	61.4	16.3	32.0	(27.2	)	82.5
Depreciation and amortization	15.3	1.8	9.7	0.8		27.6
Capital expenditures	36.9	1.4	17.9	2.8		59.0

	Three months ended January 31, 2016
	DPS	PDS	DSS	Other		Total
	$	$	$	$		$
Revenues	258.5	48.5	98.9	—		405.9
Adjusted EBITDA	55.1	13.8	14.8	(24.7	)	59.0
Depreciation and amortization	14.8	1.2	9.9	0.5		26.4
Capital expenditures	45.0	9.7	7.3	2.2		64.2

The Company evaluates the performance of its segments based on segment Adjusted EBITDA. The Company's Adjusted EBITDA is income (loss) from continuing operations before repositioning expenses (including certain product returns and

inventory write-offs recorded in gross profit), interest expense, foreign exchange losses reclassified from other comprehensive income (loss), refinancing expenses, acquisition and integration costs (including certain product returns and inventory write-offs recorded in gross profit), gains and losses on sale of capital assets, Biologics earnout income and expense, income taxes, impairment charges, remediation costs, depreciation and amortization, stock-based compensation expense, consulting costs related to our operational initiatives, purchase accounting adjustments, acquisition-related litigation expenses and other income and expenses. Adjusted EBITDA is one of several metrics used to measure segment operating performance and is also used to determine executive compensation. "Adjusted EBITDA margin" is Adjusted EBITDA as a percentage of revenues. The Company's presentation of Adjusted EBITDA may not be comparable to similarly-titled measures used by other companies and is not equivalent to "Consolidated EBITDA" as defined in the Credit Agreement (as discussed in Note 5).

Below is a reconciliation of Adjusted EBITDA to its most comparable U.S. GAAP measure.

	Three months ended January 31,
	2017		2016
	$		$
Total Adjusted EBITDA	82.5		59.0
Depreciation and amortization	(27.6	)	(26.4	)
Repositioning expenses (1)	(1.3	)	(1.2	)
Acquisition and integration costs	(3.5	)	(2.6	)
Interest expense, net	(28.2	)	(43.8	)
Benefit from income taxes	21.3		0.7
Operational initiatives related consulting costs	(1.1	)	(1.4	)
IPO costs	—		(0.4	)
Acquisition related litigation expenses	(2.3	)	(1.0	)
Stock based compensation expense	(4.0	)	(1.0	)
FDA remediation costs	—		(8.4	)
Environmental remediation costs	(3.7	)	—
Other	(3.8	)	6.5
Net income (loss) from continuing operations	28.3		(20.0	)

(1) Repositioning expenses for the three months ended January 31, 2017 includes $0.7 million of inventory reserves related to the Swindon wind down recorded in cost of goods sold.

As illustrated in the table below, revenues are attributed to countries based on the location of the customer's billing address, capital assets are attributed to the country in which they are located and goodwill is attributed to the country in which the entity to which the goodwill pertains is located:

	As of and for the three months ended January 31, 2017
	Canada	US*	Europe	Other**	Total
	$	$	$	$	$
Revenues	7.0	301.1	132.7	16.6	457.4
Capital Assets	104.3	528.9	356.2	14.8	1,004.2
Goodwill	2.6	269.4	7.3	2.2	281.5

* Includes Puerto Rico

** Primarily includes Japan

	As of and for the three months ended January 31, 2016
	Canada	US*	Europe	Other**	Total
	$	$	$	$	$
Revenues	7.3	271.8	111.9	14.9	405.9
Capital Assets	91.6	466.6	314.5	15.5	888.2
Goodwill	2.5	272.3	7.3	2.0	284.1

* Includes Puerto Rico

** Primarily includes Bermuda, Japan and other Asian countries