SEGMENT INFORMATION

6 Months Ended

Apr. 30, 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 April 30, 2017
	DPS	PDS	DSS	Other		Intersegment Eliminations		Total
	$	$	$	$		$		$
Revenues	297.2	57.8	129.2	—		(0.8	)	483.4
Adjusted EBITDA	77.4	18.4	26.1	(27.5	)	(0.2	)	94.2
Depreciation and amortization	15.4	1.9	16.1	0.9				34.3
Capital expenditures	19.5	1.7	11.6	7.4				40.2

	Three months ended April 30, 2016
	DPS	PDS	DSS	Other		Intersegment Eliminations		Total
	$	$	$	$		$		$
Revenues	287.4	53.4	127.9	—		(0.1	)	468.6
Adjusted EBITDA	72.7	16.7	30.8	(22.2	)			98.0
Depreciation and amortization	14.9	1.3	10.2	0.6				27.0
Capital expenditures	11.7	5.9	9.0	4.3				30.9

	Six months ended April 30, 2017
	DPS	PDS	DSS	Other		Intersegment Eliminations		Total
	$	$	$	$		$		$
Revenues	572.4	110.1	259.1	—		(0.8	)	940.8
Adjusted EBITDA	138.8	34.7	58.1	(54.7	)	(0.2	)	176.7
Depreciation and amortization	30.7	3.7	25.8	1.7				61.9
Capital expenditures	56.4	3.1	29.5	10.2				99.2

	Six months ended April 30, 2016
	DPS	PDS	DSS	Other		Intersegment Eliminations		Total
	$	$	$	$		$		$
Revenues	545.9	101.9	226.8	—		(0.1	)	874.5
Adjusted EBITDA	127.8	30.5	45.6	(46.9	)			157.0
Depreciation and amortization	29.7	2.5	20.1	1.2				53.5
Capital expenditures	56.7	15.6	16.3	6.5				95.1

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 April 30,				Six months ended April 30,
	2017		2016		2017		2016
	$		$		$		$
Total Adjusted EBITDA	94.2		98.0		176.7		157.0
Depreciation and amortization	(34.3	)	(27.0	)	(61.9	)	(53.5	)
Repositioning expenses (1)	(2.2	)	(1.3	)	(3.5	)	(2.5	)
Acquisition and integration costs	(8.1	)	(7.6	)	(11.6	)	(10.2	)
Interest expense, net	(30.8	)	(42.6	)	(59.0	)	(86.4	)
Benefit from (provision for) income taxes	1.5		(0.7	)	22.8		—
Refinancing expenses	(6.3	)	—		(6.3	)	—
Operational initiatives related consulting costs	(1.4	)	(1.9	)	(2.5	)	(3.3	)
IPO costs	—		(0.4	)	—		(0.8	)
Acquisition related litigation expenses	(3.7	)	(0.9	)	(6.0	)	(1.9	)
Stock based compensation expense	(7.0	)	(2.0	)	(11.0	)	(3.0	)
FDA remediation costs	—		(10.1	)	—		(18.5	)
Environmental remediation costs	—		—		(3.7	)	—
Bargain purchase gain	26.4		—		26.4		—
Other	(0.7	)	(1.6	)	(4.5	)	5.0
Net income (loss) from continuing operations	27.6		1.9		55.9		(18.1	)

(1) Repositioning expenses for the three and six months ended April 30, 2017 includes $0.4 million and $1.1 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:

	Three months ended April 30, 2017
	Canada	US*	Europe	Other**	Total
	$	$	$	$	$
Revenues	4.2	282.8	167.9	28.5	483.4

* Includes Puerto Rico

** Primarily includes Japan

	Three months ended April 30, 2016
	Canada	US*	Europe	Other**	Total
	$	$	$	$	$
Revenues	5.1	317.6	124.8	21.1	468.6

* Includes Puerto Rico

** Primarily includes Japan

	As of and for the six months ended April 30, 2017
	Canada	US*	Europe	Other**	Total
	$	$	$	$	$
Revenues	11.2	564.7	320.7	44.2	940.8
Capital Assets	100.1	687.6	367.5	14.1	1,169.3
Goodwill	2.5	269.4	7.4	2.1	281.4

* Includes Puerto Rico

** Other revenues primarily include Japan

	As of and for the six months ended April 30, 2016
	Canada	US*	Europe	Other**	Total
	$	$	$	$	$
Revenues	12.4	589.4	236.7	36.0	874.5
Capital Assets	100.8	487.3	341.6	16.1	945.8
Goodwill	2.8	269.4	7.7	2.2	282.1

* Includes Puerto Rico

** Other revenues primarily include Japan