Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2018 | Aug. 21, 2018 | Dec. 31, 2017 | |
Document Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Jun. 30, 2018 | ||
Document Fiscal Year Focus | 2,018 | ||
Trading Symbol | CTLT | ||
Document Fiscal Period Focus | Q4 | ||
Entity Registrant Name | Catalent, Inc. | ||
Entity Central Index Key | 1,596,783 | ||
Current Fiscal Year End Date | --06-30 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Public Float | $ 5,500 | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding (shares) | 144,873,693 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Income Statement [Abstract] | |||
Net revenue | $ 2,463.4 | $ 2,075.4 | $ 1,848.1 |
Cost of sales | 1,710.8 | 1,420.8 | 1,260.5 |
Gross margin | 752.6 | 654.6 | 587.6 |
Selling, general and administrative expenses | 462.6 | 402.6 | 358.1 |
Gain (Loss) on Sale of Assets and Asset Impairment Charges | (8.7) | (9.8) | (2.7) |
Restructuring, Settlement and Impairment Provisions | 10.2 | 8 | 9 |
Operating earnings | 271.1 | 234.2 | 217.8 |
Interest expense, net | 111.4 | 90.1 | 88.5 |
Nonoperating Income (Expense) | (7.7) | (8.5) | 15.6 |
Earnings from continuing operations before income taxes | 152 | 135.6 | 144.9 |
Income tax expense/(benefit) | 68.4 | 25.8 | 33.7 |
Earnings from continuing operations | 83.6 | 109.8 | 111.2 |
Less: Net (loss) attributable to noncontrolling interest, net of tax | 0 | 0 | (0.3) |
Net earnings attributable to Catalent | $ 83.6 | $ 109.8 | $ 111.5 |
Earnings Per Share, Basic | $ 0.64 | $ 0.88 | $ 0.89 |
Earnings Per Share, Diluted | $ 0.63 | $ 0.87 | $ 0.89 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income / (Loss) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||
Net earnings | $ 83.6 | $ 109.8 | $ 111.2 |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | (4.4) | (31.9) | (118.8) |
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, after Tax | (4.3) | (13) | 9.1 |
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, Net of Tax | (11.6) | 10.5 | 0 |
Other Comprehensive Income Deferred Compensation Benefit, Net of Tax | 0 | 0 | 3.8 |
Other comprehensive income /(loss), net of tax | (11.7) | (8.4) | (131.7) |
Comprehensive income/(loss) | 71.9 | 101.4 | (20.5) |
Comprehensive Income (Loss), Net of Tax, Attributable to Noncontrolling Interest | 0 | 0 | (0.3) |
Comprehensive income/(loss) attributable to Catalent | $ 71.9 | $ 101.4 | $ (20.2) |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Jun. 30, 2018 | Jun. 30, 2017 | |
Current assets: | |||
Cash and cash equivalents | $ 410.2 | $ 288.3 | |
Trade receivables, net | 555.8 | 488.8 | |
Inventories | 209.1 | 184.9 | |
Prepaid Expense and Other Assets, Current | 65.2 | 97.8 | |
Total current assets | 1,240.3 | 1,059.8 | |
Property, plant, and equipment, net | [1] | 1,270.6 | 995.9 |
Other assets: | |||
Goodwill | 1,397.2 | 1,044.1 | |
Other intangibles, net | 544.9 | 273.1 | |
Non-current deferred tax asset | 32.9 | 53.9 | |
Other Assets, Noncurrent | 45.2 | 27.5 | |
Total assets | 4,531.1 | 3,454.3 | |
Current liabilities: | |||
Debt, Current | 71.9 | 24.6 | |
Accounts payable | 192.1 | 163.2 | |
Other accrued liabilities | 312.9 | 281.2 | |
Total current liabilities | 576.9 | 469 | |
Long-term Debt and Capital Lease Obligations | 2,649.4 | 2,055.1 | |
Pension liability | 131.6 | 129.5 | |
Non-current deferred tax liability | 32.5 | 31.7 | |
Other liabilities | 54 | 45.5 | |
Commitment and contingencies (see Note 14) | 0 | 0 | |
Common Stock, Value, Outstanding | 1.3 | 1.3 | |
Preferred Stock, Value, Outstanding | 0 | 0 | |
Additional paid in capital | 2,283.3 | 1,992 | |
Accumulated deficit | (872.1) | (955.7) | |
Accumulated Other Comprehensive Income (Loss), Net of Tax | (325.8) | (314.1) | |
Total shareholders’ equity | 1,086.7 | 723.5 | |
Total liabilities, redeemable noncontrolling interest and shareholders’ equity | $ 4,531.1 | $ 3,454.3 | |
[1] | Long-lived assets include property and equipment, net of accumulated depreciation. |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2018 | Jun. 30, 2017 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (usd per share) | $ 0.01 | $ 0.01 |
Common Stock, Shares Authorized | 1,000,000,000 | 1,000,000,000 |
Common stock, shares issued (shares) | 133,423,628 | 125,049,867 |
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 | 0 | 0 |
Consolidated Statement of Chang
Consolidated Statement of Changes in Shareholder's Equity - USD ($) $ in Millions | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive (Loss)/Income [Member] |
Beginning Balance at Jun. 30, 2015 | $ 634 | $ 1.2 | $ 1,973.7 | $ (1,166.9) | $ (174) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock Issued During Period, Value, Stock Options Exercised | 0 | 0 | |||
Equity compensation | 10.8 | 10.8 | |||
Payments Related to Tax Withholding for Share-based Compensation | (8.7) | (8.7) | |||
Noncontrolling Interest Ownership Changes | (0.3) | (0.3) | |||
Net Income (Loss) Attributable to Parent | 111.5 | 111.5 | |||
Other comprehensive income /(loss), net of tax | (131.7) | (131.7) | |||
Ending Balance at Jun. 30, 2016 | 635.9 | 1.2 | 1,976.5 | (1,036.1) | (305.7) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Cumulative Effect of New Accounting Principle in Period of Adoption | 20.3 | 1 | 19.3 | ||
Stock Issued During Period, Value, Stock Options Exercised | 0.1 | 0.1 | |||
Equity compensation | 20.9 | 20.9 | |||
Payments Related to Tax Withholding for Share-based Compensation | (5.4) | (5.4) | |||
Net Income (Loss) Attributable to Parent | 109.8 | 109.8 | |||
Other comprehensive income /(loss), net of tax | (8.4) | (8.4) | |||
Ending Balance at Jun. 30, 2017 | 723.5 | 1.3 | 1,992 | (955.7) | (314.1) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Cumulative Effect of New Accounting Principle in Period of Adoption | (29.4) | (29.4) | |||
Stock Issued During Period, Value, New Issues | 277.8 | 0 | 277.8 | 0 | |
Stock Issued During Period, Value, Stock Options Exercised | 0 | 0 | |||
Equity compensation | 27.2 | 27.2 | |||
Payments Related to Tax Withholding for Share-based Compensation | (13.7) | (13.7) | |||
Net Income (Loss) Attributable to Parent | 83.6 | 83.6 | |||
Other comprehensive income /(loss), net of tax | (11.7) | (11.7) | |||
Ending Balance at Jun. 30, 2018 | $ 1,086.7 | $ 1.3 | $ 2,283.3 | $ (872.1) | $ (325.8) |
Consolidated Statement of Chan7
Consolidated Statement of Changes in Shareholder's Equity Consolidated Statment of Changes in Shareholder's Equity (Parenthetical) - shares | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Stock Issued During Period, Shares, New Issues | 7,400,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 240,000 | 304,000 | |
Common Stock [Member] | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning Balance - Common Stock Outstanding (shares) | 125,049,900 | 124,712,200 | 124,319,300 |
Stock Issued During Period, Shares, New Issues | 7,354,200 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 1,019,500 | 337,700 | 392,900 |
Ending Balance - Common Stock Outstanding (shares) | 133,423,600 | 125,049,900 | 124,712,200 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net earnings | $ 83.6 | $ 109.8 | $ 111.2 |
Adjustments to reconcile (loss)/earnings from continued operations to net cash from operations: | |||
Depreciation and Amortization | 190.1 | 146.5 | 140.6 |
Foreign Currency Transaction Gain (Loss), before Tax | 2.7 | (7.8) | 10.9 |
Amortization and write off of debt financing costs | 4.7 | 6.8 | 4.7 |
Gain (Loss) on Sale of Assets and Asset Impairment Charges | (8.7) | (9.8) | (2.7) |
Financing fees paid | 11.8 | 0 | 0 |
Equity compensation | 27.2 | 20.9 | 10.8 |
Provision/(benefit) for deferred income taxes | 35.4 | (1.3) | (15.3) |
Provision for bad debts and inventory | 6.9 | 11 | 13.2 |
Change in operating assets and liabilities: | |||
(Increase)/decrease in trade receivables | (33.6) | (54.9) | (54.1) |
(Increase)/decrease in inventories | (1.8) | (13.5) | (35.4) |
Increase/(decrease) in accounts payable | 32.3 | 9.9 | 21.4 |
Other assets/accrued liabilities, net - current and non-current | 11.9 | 46.7 | (33.6) |
Net Cash Provided by (Used in) Operating Activities | 374.5 | 299.5 | 155.3 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Capital expenditures | (176.5) | (139.8) | (139.6) |
Proceeds from sale of property and equipment | 1.8 | 0.7 | 1.9 |
Proceeds from Divestiture of Interest in Consolidated Subsidiaries | 3.4 | 0 | 0 |
Payment for acquisitions, net | (748) | (169.9) | 0 |
Net cash provided by/(used in) investing activities | (919.3) | (309) | (137.7) |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Net change in other borrowings | (3.1) | (5.8) | 2.3 |
Proceeds from borrowing, net | 442.6 | 397.4 | 0 |
Repayments of Long-term Debt | (18.9) | (218.5) | (18.6) |
Payments of Debt Issuance Costs | (15.6) | (6.4) | 0 |
Payments for Repurchase of Redeemable Noncontrolling Interest | 0 | 0 | (5.8) |
Common Stock Issued | 277.8 | 0 | 0 |
Payments Related to Tax Withholding for Share-based Compensation | (13.7) | (5.4) | (8.7) |
Net cash (used in)/provided by financing activities | 669.1 | 161.3 | (30.8) |
Effect of foreign currency on cash | (2.4) | 4.9 | (6.5) |
NET INCREASE/(DECREASE) IN CASH AND EQUIVALENTS | 121.9 | 156.7 | (19.7) |
CASH AND EQUIVALENTS AT BEGINNING OF PERIOD | 288.3 | 131.6 | 151.3 |
CASH AND EQUIVALENTS AT END OF PERIOD | 410.2 | 288.3 | 131.6 |
SUPPLEMENTARY CASH FLOW INFORMATION: | |||
Interest paid | 83.2 | 80.8 | 82.4 |
Income taxes paid, net | 23.9 | 39.8 | 40.6 |
Additional Paid-in Capital [Member] | |||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Payments Related to Tax Withholding for Share-based Compensation | $ (13.7) | $ (5.4) | $ (8.7) |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 12 Months Ended |
Jun. 30, 2018 | |
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 primarily comprised of the financial results of Operating Company and its subsidiaries on a consolidated basis. On July 31, 2014, the Company commenced an initial public offering (the "IPO") of its common stock (the "Common Stock"), in which it sold a total of 48.9 million shares at a price of $20.50 per share, before underwriting discounts and commissions. The Company’s common stock began trading on the New York Stock Exchange (the "NYSE") under the symbol "CTLT" as of the IPO. On March 9, 2015, three pre-IPO shareholders (collectively, the "selling stockholders") completed a secondary offering of 27.3 million shares of the Company’s common stock, including 3.6 million shares sold pursuant to the over-allotment option granted to the underwriters at a price of $29.50 per share before underwriting discounts and commissions. On June 2, 2015, the selling stockholders completed an additional secondary offering of 16.1 million shares, including 2.1 million shares sold pursuant to the over-allotment option, at a price of $29.00 per share, before underwriting discounts and commissions. On June 6, 2016, the selling stockholders completed a secondary offering of 10.0 million shares of the Company's common stock at a price of $24.85 per share before underwriting discounts and commissions. On September 6, 2016, two of the selling stockholders completed a final secondary offering of their remaining shares, totaling approximately 19.0 million shares, at a price of $23.85 per share before underwriting discounts and commissions. The Company did not sell any stock in any of the secondary offerings and did not receive any proceeds of the sales. On September 29, 2017, the Company completed a public offering of its common stock, pursuant to which the Company sold 7.4 million shares, including shares sold pursuant to an exercise of the underwriters' over-allotment option at a price of $39.10 per share, before underwriting discounts and commissions. The Company is the leading global provider of advanced delivery technologies and development solutions for drugs, biologics, and consumer and animal health products. Its oral, injectable, and respiratory delivery technologies address the full diversity of the pharmaceutical industry, including small molecules, large-molecule biologics and consumer and animal health products. Through its extensive capabilities and deep expertise in product development, it helps its customers take products to market faster, including nearly half of new drug products approved by the U.S. Food and Drug Administration (the "FDA") in the last decade. Its advanced delivery technology platforms, its proven formulation, manufacturing, and regulatory expertise, and its broad and deep intellectual property enable its customers to develop more products and better treatments for patients and consumers. Across both development and delivery, its commitment to reliably supply its customers’ and their patients' needs is the foundation for the value it provides; annually, it produces approximately 73 billion doses for nearly 7,000 customer products, or approximately 1 in every 20 doses of such products taken each year by patients and consumers around the world. The Company believes that through its investments in growth-enabling capacity and capabilities, its ongoing focus on operational and quality excellence, the sales of existing customer products, the introduction of new customer products, its innovation activities and patents, and its entry into new markets, it will continue to benefit from attractive and differentiated margins and realize the growth potential from these areas. Reportable Segments In fiscal 2018, 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 created two new operating segments from the former Drug Delivery Solutions segment: • Biologics and Specialty Drug Delivery, which encompasses biologic cell-line development and manufacturing, development and manufacturing services for blow-fill-seal unit doses, prefilled syringes, vials, and cartridges; analytical development and testing services for large molecules; and development and manufacturing for inhaled products for delivery via metered dose inhalers, dry powder inhalers, and intra-nasal sprays; and • Oral Drug Delivery, which encompasses comprehensive formulation, development, manufacturing, and analytical development capabilities using advanced processing technologies such as bioavailability enhancement, controlled release, particle size engineering, and taste-masking for solid oral-dose forms. Each of the two new segments 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 ASC 280 Segment Reporting . The Company's offerings and services are summarized below by reporting segment. Softgel Technologies Through its Softgel Technologies segment, the Company provides formulation, development and manufacturing services for soft capsules, or "softgels," which the Company's predecessor first commercialized in the 1930s and which have continually been enhanced. The Company is the market leader in overall softgel manufacturing and holds the leading market position in the prescription arena. The Company's principal softgel technologies include traditional softgel capsules, in which the shell is made of animal-derived gelatin, and Vegicaps and OptiShell capsules, in which the shell is made from plant-derived materials. Softgel capsules are used in a broad range of customer products, including prescription drugs, over-the-counter medications, dietary supplements, unit-dose cosmetics, and animal health medicinal preparations. Softgel capsules encapsulate liquid, paste or oil-based active compounds in solution or suspension within an outer shell. In the manufacturing process, the capsules are formed, filled, and sealed simultaneously. The Company typically performs encapsulation for a product within one of its softgel facilities, with active ingredients provided by customers or sourced directly by the Company. Softgels have historically been used to solve formulation challenges or technical issues for a specific drug, to help improve the clinical performance of compounds, to provide important market differentiation, particularly for over-the-counter medications, and to provide safe handling of hormonal, potent and cytotoxic drugs. The Company also participates in the softgel vitamin, mineral and supplement business in selected regions around the world. With the 2001 introduction of the Company's plant-derived softgel shell, Vegicaps capsules, consumer health customers have been able to extend the softgel dose form to a broader range of active ingredients and serve patient/consumer populations that were previously inaccessible due to religious, dietary or cultural preferences. In recent years, the Company has extended this platform to pharmaceutical products via its OptiShell capsule offering. The Company's Vegicaps and OptiShell capsules are protected by patents in most major global markets. Physician and patient studies the Company has conducted have demonstrated a preference for softgels versus traditional tablet and hard capsule dose forms in terms of ease of swallowing, real or perceived speed of delivery, ability to remove or eliminate unpleasant odor or taste and, for physicians, perceived improved patient adherence with dosing regimens. Representative customers of Softgel Technologies include Pfizer, Novartis, Bayer, GlaxoSmithKline, Teva, Johnson & Johnson, Procter & Gamble, and Allergan. Biologics and Specialty Drug Delivery The Company's Biologics and Specialty Drug Delivery segment provides development and delivery technologies and integrated solutions for biologics and specialty small molecules including: delivery of small molecules, biologics, and biosimilars administered via injection, inhalation and ophthalmic routes, using both traditional and advanced technologies. The business has expertise in development as well as scale up and commercial manufacturing. Representative customers of Biologics and Specialty Drug Delivery include Eli Lilly, Teva, Mylan, Roche, and Genentech, along with multiple innovative small and mid-tier pharmaceutical and biologics customers. The Company's growing biologics offering includes cell-line development based on its advanced and patented GPEx technology, which is used to develop stable, high-yielding mammalian cell lines for both innovator and biosimilar biologic compounds. GPEx technology can provide rapid cell-line development, high biologics production yields, flexibility, and versatility. The Company's development and manufacturing facility in Madison, Wisconsin has the capability and capacity to produce cGMP quality biologics drug substance from 250L to 4000L scale using single-use technology to provide maximum efficiency and flexibility. The fiscal 2018 acquisition of Catalent Indiana added a biologics-focused contract development and manufacturing organization with capabilities across biologics development, clinical, and commercial drug substance manufacturing, formulation, finished-dose manufacturing, and packaging. The Company's SMARTag next-generation antibody-drug conjugate technology enables development of antibody-drug conjugates and other protein conjugates with improved efficacy, safety, and manufacturability. Combined with offerings from the Company's other businesses, the Company provides the broadest range of technologies and services supporting the development and launch of new biologic entities, biosimilars, and biobetters to bring a product from gene to commercialization, faster. The Company's range of injectable manufacturing offerings includes filling drugs or biologics into pre-filled syringes, cartridges, and vials, with flexibility to accommodate other formats within our existing network, increasingly focused on complex pharmaceuticals and biologics. With the Company's range of technologies, the segment is able to meet a wide range of specifications, timelines, and budgets. The Company believes that the complexity of the manufacturing process, the importance of experience and know-how, regulatory compliance, and high start-up capital requirements provide it with a substantial competitive advantage in the market. For example, blow-fill-seal is an advanced aseptic processing technology, which uses a continuous process to form, fill with drug or biologic, and seal a plastic container in a sterile environment. Blow-fill-seal units are currently used for a variety of pharmaceuticals in liquid form, such as respiratory, ophthalmic, and otic products. The Company's sterile blow-fill-seal manufacturing has significant capacity and flexibility in manufacturing configurations. This business provides flexible and scalable solutions for unit-dose delivery of complex formulations such as suspensions and emulsions. Further, the business provides formulation, engineering and manufacturing solutions related to complex containers. The Company's regulatory expertise can lead to decreased time to commercialization, and its dedicated development production lines support feasibility, stability, and clinical runs. The Company plans to continue to expand its product line in existing and new markets, and in higher margin specialty products with additional respiratory, ophthalmic, injectable, and nasal applications. The segment also offers analytical development and testing services for large molecules, including cGMP release and stability testing. The Company's respiratory product capabilities include development and manufacturing services for inhaled products for delivery via metered dose inhalers, dry powder inhalers and intra-nasal sprays. Across multiple complex dosage forms, the segment provides drug and biologic solutions from early-stage development and clinical support all the way through to scale up and commercialization. Oral Drug Delivery The Company's Oral Drug Delivery segment provides various advanced formulation development and manufacturing technologies, and related integrated solutions including: clinical development and commercial manufacturing of a broad range of oral dose forms, including our proprietary fast-dissolve Zydis tablets and both conventional immediate and controlled release tablets, capsules, and sachet products. Representative customers of Oral Drug Delivery include Pfizer, Johnson & Johnson, Bayer, Novartis, and Perrigo. The segment provides comprehensive pre-formulation, development, and GMP manufacturing at both clinical and commercial scales for traditional and advanced complex oral solid-dose formats, including coated and uncoated tablets, pellet/bead/powder-filled two-piece hard capsules, granulated powders, and other forms of immediate and modified release branded prescription, generic, and consumer products. The Company has substantial experience developing and scaling up products requiring accelerated development timelines, bioavailability or solubility enhancement, specialized handling ( e.g., potent or DEA-regulated materials), complex technology transfers, and specialized manufacturing processes. The Company also provides micronization and particle engineering services, which may enhance a drug's manufacturability or clinical performance. The Company offers comprehensive analytical testing and scientific services and stability testing for small molecules, both to support integrated development programs and on a fee-for-service basis. The Company provides global regulatory and support services for its customers’ clinical strategies during all stages of development. Demand for the segment's offerings is driven by the need for scientific expertise and depth and breadth of services offered, as well as by the reliability of its supply, including quality, execution, and performance. The Company launched its orally dissolving tablet business in 1986 with the introduction of Zydis tablets, a unique proprietary freeze-dried tablet that typically dissolves in the mouth, without water, in less than three seconds. Most often used for drugs and patient groups that can benefit from rapid oral disintegration, the Company can adapt the Zydis technology to a wide range of products and indications, including treatments for a variety of central nervous system-related conditions such as migraines, Parkinson’s disease, and schizophrenia, and consumer healthcare products targeting indications such as pain and allergy relief. The Company continues to develop Zydis tablets in different ways with its customers as it extends the application of the technology to new therapeutic categories, including immunotherapy, vaccines, and biologic molecule delivery. Clinical Supply Services The Company's Clinical Supply Services segment provides manufacturing, packaging, storage, distribution, and inventory management for drugs and biologics in clinical trials. The segment offers customers flexible solutions for clinical supplies production and provides distribution and inventory management support for both simple and complex clinical trials. This includes over-encapsulation where needed; supplying placebos, comparator drug procurement, and clinical packages and kits for physicians and patients; inventory management; investigator kit ordering and fulfillment; and return supply reconciliation and reporting. The segment supports trials in all regions of the world through its facilities and distribution network. In fiscal 2018, the Company completed the second phase of its expansion program in our Kansas City, Missouri facility. Further, in fiscal 2016 and again in fiscal 2018, the Company expanded its Singapore facility by building additional flexible cGMP space, and the Company introduced clinical supply services at its existing 100,000 square foot facility in Japan, expanding its Asia Pacific capabilities. Additionally, in fiscal 2013, the Company established its first clinical supply services facility in China as a joint venture and assumed full ownership in fiscal 2015. The Company is the leading provider of integrated development solutions and one of the leading providers of clinical trial supplies. Representative customers of Clinical Supply Services include Merck KGaA, IQVIA, Eli Lilly, AbbVie, and Incyte Corporation. Basis of Presentation These financial statements include all of the Company’s subsidiaries, including those operating outside the United States ("U.S.") and are prepared in accordance with U.S. GAAP. All significant transactions among the Company’s businesses have been eliminated. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect amounts reported in the financial statements and accompanying notes. Such estimates include, but are not limited to, allowance for doubtful accounts, inventory and long-lived asset valuation, goodwill and other intangible asset valuation and impairment, equity-based compensation, income taxes, and pension plan asset and liability valuation. Actual amounts may differ from these estimated amounts. Foreign Currency Translation The financial statements of the Company’s operations outside the U.S. are generally measured using the local currency as the functional currency. Adjustments to translate the assets and liabilities of the foreign operations into U.S. dollars are accumulated as a component of other comprehensive income/(loss) utilizing period-end exchange rates. In June 2018, as a result of the three-year cumulative consumer price index exceeding 100%, Argentina was classified as having a highly inflationary economy. The Company is presently evaluating the impact of accounting for its Argentine operations as highly inflationary beginning on July 1, 2018. The currency fluctuation related to certain long-term inter-company loans deemed to not be repayable in the foreseeable future have been recorded within the cumulative translation adjustment, a component of other comprehensive income/(loss). In addition, the currency fluctuation associated with the portion of the Company’s euro-denominated debt designated as a net investment hedge is included as a component of other comprehensive income/(loss). 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 that are repayable in the foreseeable future. Revenue Recognition In accordance with Accounting Standards Codification ( "ASC") 605 Revenue Recognition, the Company recognizes revenue when persuasive evidence of an arrangement exists, product delivery has occurred or the services have been rendered, the price is fixed or determinable and collectability is reasonably assured. In cases where the Company has multiple contracts with the same customer, the Company evaluates those contracts to assess if the contracts are linked or are separate arrangements. Factors the Company considers include the timing of negotiation, interdependency with other contracts or elements and payment terms. The Company and its customers generally view each contract as a separate arrangement. Manufacturing and packaging service revenue is recognized upon delivery of the product in accordance with the terms of the contract, which specify when transfer of title and risk of loss occurs. Some of the Company’s manufacturing contracts with its customers have annual minimum purchase requirements. At the end of the contract year, revenue is recognized for the unfilled purchase obligation in accordance with the contract terms. Development service contracts generally take the form of a fee-for-service arrangement. After the Company has evidence of an arrangement, the price is determinable and there is a reasonable expectation regarding payment, the Company recognizes revenue at the point in time the service obligation is completed and accepted by the customer. Examples of output measures include a formulation report, analytical and stability testing, clinical batch production or packaging and the storage and distribution of a customer’s clinical trial material. Arrangements containing multiple elements, including service arrangements, are accounted for in accordance with the provisions of ASC 605-25 Revenue Recognition—Multiple-Element Arrangements . The Company determines the separate units of account in accordance with ASC 605-25. If the deliverable meets the criteria of a separate unit of accounting, the arrangement consideration is allocated to each element based upon its relative selling price. In determining the best evidence of selling price of a unit of account the Company utilizes vendor-specific objective evidence ("VSOE"), which is the price the Company charges when the deliverable is sold separately. When VSOE is not available, management uses relevant third-party evidence ("TPE") of selling price, if available. When neither VSOE nor TPE of selling price exists, management uses its best estimate of selling price. Cash and Cash Equivalents All liquid investments purchased with original maturities of three months or less are considered to be cash and equivalents. The carrying value of these cash equivalents approximates fair value. Receivables and Allowance for Doubtful Accounts Trade receivables are primarily comprised of amounts owed to the Company through its operating activities and are presented net of an allowance for doubtful accounts. The Company monitors past due accounts on an ongoing basis and establishes appropriate reserves to cover probable losses. An account is considered past due on the first day after its due date. The Company makes judgments as to its ability to collect outstanding receivables and provides allowances when it concludes that all or a portion of the receivable will not be collected. The Company determines its allowance by considering a number of factors, including the length of time accounts receivable are past due, the Company’s previous loss history, the specific customer’s ability to pay its obligation to the Company, and the condition of the general economy and the customer’s industry. Concentrations of Credit Risk and Major Customers Concentration of credit risk, with respect to accounts receivable, is limited due to the large number of customers and their dispersion across different geographic areas. The customers are primarily concentrated in the pharmaceutical and healthcare industry. The Company normally does not require collateral or any other security to support credit sales. The Company performs ongoing credit evaluations of its customers’ financial conditions and maintains reserves for credit losses. Such losses historically have been within the Company’s expectations. No single customer exceeded 10% of revenue during the fiscal years ended 2018 , 2017 , and 2016 or 10% of accounts receivable as of the years ended 2018 and 2017 . Inventories Inventory is stated at the lower of cost or net realizable value, using the first-in, first-out ("FIFO") method. The Company provides for cost adjustments for excess, obsolete, or slow-moving inventory based on changes in customer demand, technology developments or other economic factors. Inventory consists of costs associated with raw material, labor, and overhead. Goodwill The Company accounts for purchased goodwill and intangible assets with indefinite lives in accordance with ASC 350 Goodwill, Intangible and Other Assets . Under ASC 350, goodwill and intangible assets with indefinite lives are not amortized, but instead are tested for impairment at least annually. The Company’s annual goodwill impairment test was conducted as of April 1, 2018 . The Company assesses goodwill for possible impairment by comparing the carrying value of its reporting units to their fair values. The Company determines the fair value of its reporting units utilizing estimated future discounted cash flows and incorporates assumptions that it believes marketplace participants would utilize. In addition, the Company uses comparative market information and other factors to corroborate the discounted cash flow results. Property and Equipment and Other Definite-Lived Intangible Assets Property and equipment are stated at cost. Depreciation expense is computed using the straight-line method over the estimated useful lives of the assets, including leasehold improvements and capital lease assets that are amortized over the shorter of their useful lives or the terms of the respective leases. The Company generally uses the following range of useful lives for its property and equipment categories: buildings and improvements— 5 to 50 years; machinery and equipment— 3 to 10 years; and furniture and fixtures— 3 to 7 years. The Company also capitalizes certain computer software and development costs in property, plant, and equipment, net, when incurred in connection with developing or obtaining computer software for internal use. Capitalized software costs are amortized over the estimated useful lives of the software, which generally range from 3 to 5 years. Depreciation expense was $127.5 million for the fiscal year ended June 30, 2018 , $102.2 million for the fiscal year ended June 30, 2017 , and $94.2 million for the fiscal year ended June 30, 2016 . Depreciation expense includes amortization of assets related to capital leases. The Company charges repairs and maintenance costs to expense as incurred. The amount of capitalized interest was immaterial for all periods presented. Intangible assets with finite lives, primarily including customer relationships, patents, and trademarks are amortized over their useful lives. The Company evaluates the recoverability of its other long-lived assets, including amortizing intangible assets, if circumstances indicate impairment may have occurred pursuant to ASC 360 Property, Plant and Equipment . This analysis is performed by comparing the respective carrying values of the assets to the current and expected future cash flows, on an un-discounted basis, to be generated from such assets. If such analysis indicates that the carrying value of these assets is not recoverable, the carrying value of such assets is reduced to fair value through a charge to the consolidated statements of operations. Fair value is determined based on assumptions the Company believes marketplace participants would utilize and comparable marketplace information in similar arm’s length transactions. The Company recorded impairment charges related to definite-lived intangible assets and property, plant, and equipment, net of gains on sale, of $8.7 million , $9.8 million , and $2.7 million , for the fiscal years ended June 30, 2018 , June 30, 2017 , and June 30, 2016 , respectively. Post-Retirement and Pension Plans The Company sponsors various retirement and pension plans, including defined benefit retirement plans and defined contribution retirement plans. The measurement of the related benefit obligations and the net periodic benefit costs recorded each year are based upon actuarial computations, which require management’s judgment as to certain assumptions. These assumptions include the discount rates used in computing the present value of the benefit obligations and the net periodic benefit costs, the expected future rate of salary increases (for pay-related plans) and the expected long-term rate of return on plan assets (for funded plans). The Company uses the corridor approach to amortize actuarial gains and losses. Effective June 30, 2016, the approach used to estimate the service and interest components of net periodic benefit cost for benefit plans was changed to provide a more precise measurement of service and interest costs. Historically, the Company estimated these service and interest components utilizing a single weighted-average discount rate derived from the yield curve used to measure the benefit obligation at the beginning of the period. Going forward, the Company has elected to utilize an approach that discounts the individual expected cash flows using the applicable spot rates derived from the yield curve over the projected cash flow period. The Company has accounted for this change as a change in accounting estimate that is inseparable from a change in accounting principle and accordingly has accounted for it prospectively. The expected long-term rate of return on plan assets is based on the target asset allocation and the average expected rate of growth for the asset classes invested. The average expected rate of growth is derived from a combination of historic returns, current market indicators, and the expected risk premium for each asset class. The Company uses a measurement date of June 30 for all its retirement and postretirement benefit plans. Derivative Instruments, Hedging Activities, and Fair Value Derivatives Instruments and Hedging Activities The Company is exposed to certain risks arising from both its business operations and economic conditions. The Company principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Company manages economic risks, including interest-rate, liquidity, and credit risk primarily by managing the amount, sources and duration of its debt funding and the use of derivative financial instruments. Specifically, the Company enters into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates. The Company’s derivative financial instruments are used to manage differences in the amount, timing, and duration of the Company’s known or expected cash receipts and its known or expected cash payments principally related to the Company’s borrowings. The Company does not net any of its derivative positions under master netting arrangements. Specifically, the Company is exposed to fluctuations in the euro-U.S. dollar exchange rate on its investments in foreign operations in Europe. While the Company does not actively hedge against changes in foreign currency, it has mitigated the exposure of investments in its European operations through a net-investment hedge by denominating a portion of its debt in euros. Fair Value The Company is required to measure certain assets and liabilities at fair value, either upon initial measurement or for subsequent accounting or reporting. The Company uses fair value extensively in the initial measurement of net assets acquired in a business combination and when accounting for and reporting on certain financial instruments. The Company estimates fair value using an exit price approach, which requires, among other things, that it determine the price that would be received to sell an asset or paid to transfer a liability in an orderly market. The determination of an exit price is considered from the perspective of market participants, considering the highest and best use of assets and, for liabilities, assuming the risk of non-performance will be the same before and after the transfer. A single estimate of fair value results from a complex series of judgments about future events and uncertainties and relies heavily on estimates and assumptions. When estimating fair value, depending on the nature and complexity of the assets or liability, the Company may use one or all of the following approaches: • Market approach, which is based on market prices and other information from market transactions involving identical or comparable assets or liabilities. • Cost approach, which is based on the cost to acquire or construct comparable assets less an allowance for functional and/or economic obsolescence. • I |
Business Combinations Business
Business Combinations Business Combinations | 12 Months Ended |
Jun. 30, 2018 | |
Business Combinations [Abstract] | |
Business Combination Disclosure | BUSINESS COMBINATIONS Transaction Overview: In October 2017, the Company acquired 100% of the equity interest in Cook Pharmica LLC (now Catalent Indiana, LLC, "Catalent Indiana") for an aggregate nominal purchase price of $950 million , subject to adjustment, in order to enhance the Company's biologics capabilities. Catalent Indiana is a biologics-focused contract development and manufacturing organization with capabilities across biologics development, clinical, and commercial cell culture manufacturing, formulation, finished-dose manufacturing, and packaging. The Company accounted for the transaction using the acquisition method of accounting for business combinations, in accordance with ASC 805 Business Combinations. The total consideration was (in thousands): Cash paid at closing $ 748,002 Fair value of deferred consideration at closing 184,838 Total consideration $ 932,840 In addition to the cash paid at the closing of the acquisition, the purchase agreement includes a deferred consideration arrangement that requires the Company to pay an additional $200.0 million in $50.0 million increments on each of the first four anniversaries of the closing. The fair value of the deferred consideration recognized on the acquisition date was estimated by calculating the risk-adjusted present value of the deferred cash payments and includes a component of imputed interest. This deferred consideration is included in current and long-term obligations within the Company's consolidated balance sheet at June 30, 2018. Following the acquisition, the operating results of Catalent Indiana have been included in the Company's consolidated financial statements. For the period from the acquisition date through June 30, 2018, Catalent Indiana's net revenue was $164.7 million and pre-tax earnings were $23.5 million . Transaction costs incurred as a result of the acquisition of $11.2 million are included in selling, general, and administrative expenses for the fiscal year ended June 30, 2018. Valuation Assumptions and Preliminary Purchase Price Allocation: The Company 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. During the one-year measurement period, the Company will continue to obtain information to assist in finalizing the fair value of net assets acquired, which may differ materially from these preliminary estimates. Amounts subject to finalization include income taxes. If any measurement period adjustment is material, the Company will record such adjustments, 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 thousands): Accounts Receivable $ 37,096 Inventory 24,694 Other current assets 1,546 Property, plant, and equipment 221,139 Identifiable intangible assets 330,000 Trade and other payables 5,380 Deferred revenue 18,132 Total identifiable net assets 590,963 Goodwill 341,877 Total assets acquired and liabilities assumed $ 932,840 The carrying value of trade receivables, raw materials inventory, and trade payables, as well as certain other current and non-current assets and liabilities, generally represented the fair value at the date of acquisition. Property, plant, and equipment was valued using a combination of the sales comparison approach and cost approach, which is based on current replacement and/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 $330 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 the 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 and factors. Preliminary assumptions may change and may result in significant changes to the final valuation. The customer relationship intangible asset has a weighted average useful life of 14 years. Goodwill has preliminarily been allocated to our Biologics and Specialty Drug Delivery segment as shown in Note 3, Goodwill . Goodwill is expected to be deductible for tax purposes and is mainly comprised of the following: growth from an expected increase in capacity utilization, potential new customers, and the biologic expertise and know-how acquired with the acquisition of Catalent Indiana's workforce. Pro Forma Results: The following table provides unaudited pro forma results for the Company, prepared in accordance with ASC 805, for the fiscal years ended June 30, 2018 and June 30, 2017, as if the Company had acquired Catalent Indiana as of July 1, 2016 (in thousands, except per share data): For the Year Ended June 30, 2018 June 30, 2017 Revenue $ 2,534.6 $ 2,257.9 Net earnings 114.2 83.6 Basic earnings per share 0.86 0.63 Diluted earnings per share 0.85 0.62 The unaudited pro forma financial information was prepared based on the historical information of Catalent and Catalent Indiana. In order to reflect the acquisition on July 1, 2016, the unaudited pro formal financial information includes adjustments to reflect the incremental amortization expense to be incurred based on the fair value of the intangible assets acquired, the incremental depreciation expense related to the fair-value adjustments associated with Catalent Indiana's property, plant, and equipment, the additional interest expense associated with the issuance of debt to finance the acquisition, the shares issued in connection with the first quarter equity offering to finance the acquisition, and the acquisition, integration, and financing-related costs incurred during the fiscal years ended June 30, 2018 and 2017, respectively. The results do not include any anticipated cost savings or other effects associated with integrating Catalent Indiana into the rest of the Company. Unaudited pro forma amounts are not necessarily indicative of results had the acquisition occurred on July 1, 2016 or of future results. |
Goodwill
Goodwill | 12 Months Ended |
Jun. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | GOODWILL The following table summarizes the changes from June 30, 2016 , to June 30, 2017 and then to June 30, 2018 in the carrying amount of goodwill in total and by reporting segment: (Dollars in millions) Softgel Technologies Drug Delivery Solutions Biologics and Specialty Drug Delivery Oral Drug Delivery Clinical Supply Services Total Balance at June 30, 2016 $ 405.9 $ 435.1 $ — $ — $ 155.5 $ 996.5 Additions 5.8 48.3 — — — 54.1 Foreign currency translation adjustments 3.5 (6.2 ) — — (3.8 ) (6.5 ) Balance at June 30, 2017 415.2 477.2 — — 151.7 1,044.1 Additions 0.4 — 341.9 — — 342.3 Reallocation — (477.2 ) 163.8 313.4 — — Divestitures (0.9 ) — — — — (0.9 ) Foreign currency translation adjustments 0.5 — — 6.5 4.7 11.7 Balance at June 30, 2018 $ 415.2 $ — $ 505.7 $ 319.9 $ 156.4 $ 1,397.2 The increase in goodwill in the Biologics and Specialty Drug Delivery segment relates to the Catalent Indiana acquisition. See Note 2, Business Combinations . As part of the business reorganization discussed in Note 1, Basis of Presentation and Summary of Significant Accounting Policies , the goodwill from the previous Drug Delivery Solutions segment was allocated to the Biologics and Specialty Drug Delivery and Oral Drug Delivery segments in the fourth quarter of fiscal year 2018. The reduction in goodwill in the Softgel Technologies segment relates to the sale of two manufacturing sites in the Asia-Pacific region. The site divestitures were not material either individually or in the aggregate to the segment or to the Company. The Company recorded no impairment charge in the current or prior period related to goodwill. |
Definite Lived Long-Lived Asset
Definite Lived Long-Lived Assets | 12 Months Ended |
Jun. 30, 2018 | |
Finite lived 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 other 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 intangible assets subject to amortization as of June 30, 2018 and June 30, 2017 , are as follows: (Dollars in millions) Weighted Average Life Gross Carrying Value Accumulated Amortization Net Carrying Value June 30, 2018 Amortized intangibles: Core technology 18 years $ 170.8 $ (85.3 ) $ 85.5 Customer relationships 14 years 587.0 (140.9 ) 446.1 Product relationships 12 years 210.5 (197.2 ) 13.3 Total intangible assets $ 968.3 $ (423.4 ) $ 544.9 (Dollars in millions) Weighted Average Life Gross Carrying Value Accumulated Amortization Net Carrying Value June 30, 2017 Amortized intangibles: Core technology 18 years $ 170.3 $ (74.8 ) $ 95.5 Customer relationships 14 years 253.0 (106.1 ) 146.9 Product relationships 12 years 206.9 (176.2 ) 30.7 Total intangible assets $ 630.2 $ (357.1 ) $ 273.1 Amortization expense was $62.6 million , $44.3 million , and $46.4 million for the fiscal year ended June 30, 2018 , June 30, 2017 , and June 30, 2016 , respectively. Future amortization expense for the next five years is estimated to be: (Dollars in millions) 2019 2020 2021 2022 2023 Amortization expense $ 63.5 $ 49.5 $ 49.5 $ 49.5 $ 49.5 The Company impaired definite-lived intangible assets of $0.6 million , $3.4 million , and $0.7 million in the fiscal years ended June 30, 2018, 2017, and 2016, respectively. |
Restructuring and Other Costs
Restructuring and Other Costs | 12 Months Ended |
Jun. 30, 2018 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Other Costs | RESTRUCTURING AND OTHER COSTS Restructuring Costs 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. 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. Other Costs/(Income) Other costs include settlement charges for claim amounts that the Company deemed to be both probable and reasonably estimable, but is not currently in a position to record under U.S. GAAP any insurance recovery with respect to such costs related to the temporary suspension of operations at a softgel manufacturing facility. Refer to Note 14 , Commitments and Contingencies for further discussions of such claims. The following table summarizes the significant costs recorded within restructuring and other costs: Year ended June 30, (Dollars in millions) 2018 2017 2016 Restructuring costs: Employee-related reorganization $ 11.9 $ 7.9 $ 3.7 Asset impairments — — 0.4 Facility exit and other costs 0.4 (1.7 ) 4.9 Total restructuring costs $ 12.3 $ 6.2 $ 9.0 Other - Temporary suspension customer claims (recoveries) $ (2.1 ) $ 1.8 $ — Total restructuring and other costs $ 10.2 $ 8.0 $ 9.0 |
Long-Term Obligations and Other
Long-Term Obligations and Other Short-Term Borrowings | 12 Months Ended |
Jun. 30, 2018 | |
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 consist of the following at June 30, 2018 and June 30, 2017 : (Dollars in millions) Maturity as of June 30, 2018 June 30, June 30, Senior Secured Credit Facilities Term loan facility U.S. dollar-denominated May 2024 $ 1,228.4 $ 1,244.2 Term loan facility euro-denominated May 2024 358.9 352.0 Euro-denominated 4.75% Senior Notes due 2024 December 2024 438.4 424.3 U.S. dollar-denominated 4.875% Senior Notes due 2026 January 2026 443.8 — Deferred purchase consideration September 2021 188.9 — $200 million revolving credit facility May 2022 — — Capital lease obligations 2020 to 2032 60.8 53.3 Other obligations 2018 to 2019 2.1 5.9 Total 2,721.3 2,079.7 Less: Current portion of long-term obligations and other short-term borrowings 71.9 24.6 Long-term obligations, less current portion $ 2,649.4 $ 2,055.1 Senior Secured Credit Facilities and Third Amendment In October 2017, Operating Company completed Amendment No. 3 (the "Third Amendment") to its Amended and Restated Credit Agreement, dated as of May 20, 2014 (as subsequently amended, the "Credit Agreement"), governing the senior secured credit facilities that provide U.S. dollar-denominated term loans, euro-denominated term loans, and a revolving credit facility. The Third Amendment lowered the interest rate on U.S. dollar-denominated and euro-denominated term loans and the revolving credit facility and extended the maturity dates on the senior secured credit facilities by three years. The new applicable rate for U.S. dollar-denominated term loans is LIBOR (the London Interbank Offered Rate, subject to a floor of 1.00% ) plus 2.25% , which is 0.50% lower than the previous rate, and the new applicable rate for euro-denominated term loans is Euribor (the Euro Interbank Offered Rate published by the European Money Markets Institute, subject to a floor of 1.00% ) plus 1.75% , which is 0.75% lower than the previous rate. The new applicable rate for the revolving loans is initially LIBOR plus 2.25% , which is 1.25% lower than the previous rate, and such rate can additionally be reduced to LIBOR plus 2.00% in future periods based on a measure of Operating Company's total leverage ratio. The term loans and revolving loans will now mature in May 2024 and May 2022, respectively. As of June 30, 2018, the Company has $194.8 million of un-utilized capacity and $5.2 million of outstanding letters of credit under our $200 million revolving credit facility. Euro-denominated 4.75% Senior Notes due 2024 In December 2016, Operating Company completed a private offering of €380.0 million aggregate principal amount of 4.75% Senior Notes due 2024 (the "Euro Notes"). The Euro 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 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 Notes will mature on December 15, 2024, bear interest at the rate of 4.75% per annum and are payable semi-annually in arrears on June 15 and December 15 of each year. The proceeds of the Euro Notes were used to repay $200 million of outstanding borrowings on the U.S. dollar-denominated term loan, pay $81.0 million then outstanding under the revolving credit facility, pay accrued and unpaid interest and certain fees and expenses associated with the offering, fund a previously announced pending acquisition, and provide cash for general corporate purposes. In connection with the Euro Notes offering and subsequent payment of the U.S. dollar-denominated term loan, Operating Company incurred $6.9 million of third-party financing costs, of which $0.6 million was expensed, and a $2.0 million expense related to unamortized debt discount and deferred financing costs, both recorded in other (income) / expense, net in the consolidated statement of operations. U.S. Dollar-denominated 4.875% Senior Notes due 2026 In October 2017, Operating Company completed a private offering (the "Debt Offering") of $450.0 million aggregate principal amount of 4.875% Senior Notes due 2026 (the "USD Notes"). The USD 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 USD Notes were offered in the United States to qualified institutional buyers in reliance on Rule 144A under the Securities Act and outside the United States only to non-U.S. investors pursuant to Regulation S under the Securities Act. The USD Notes will mature on January 15, 2026, bear interest at the rate of 4.875% per annum, and are payable semi-annually in arrears on January 15 and July 15 of each year, beginning on July 15, 2018. The net proceeds of the Debt Offering, after payment of the initial purchasers' discount and related fees and expenses, were used to fund a portion of the consideration for the Catalent Indiana acquisition due at its closing. Bridge Loan Facility In September 2017, contemporaneous with the Company entering into the agreement to acquire Catalent Indiana, Operating Company entered into a debt commitment letter with several financial institutions, as commitment parties. Pursuant to the debt commitment letter and subject to its terms and conditions, the commitment parties agreed to provide a senior unsecured bridge loan facility (the "Bridge Facility") of up to $700.0 million in the aggregate for the purpose of providing any back-up financing necessary to fund a portion of the consideration to be paid in the acquisition and related fees, costs, and expenses (the "Bridge Loan Commitment"). In connection with entering into the Bridge Facility, Operating Company incurred $6.1 million of associated fees, which was recorded in prepaid expenses and other in the consolidated balance sheet as of September 30, 2017. Operating Company did not draw on the Bridge Facility to fund the acquisition, the Company expensed the $6.1 million in the second quarter as part of other (income)/expense, net, and the Bridge Facility was closed. See Note 13, Other (Income)/Expense, Net for further discussion of financing costs incurred in the fiscal year. Deferred Purchase Consideration In connection with the acquisition of Catalent Indiana in October 2017, $200 million of the $950 million aggregate nominal purchase price is payable in $50 million installments, on each of the first four anniversaries of the closing date. The deferred purchase consideration was recorded at fair value at the date of acquisition, with the remainder treated as imputed interest. Long-Term and Other Obligations Other obligations consist primarily of capital leases for buildings and other loans for business and working capital needs. Maturities of long-term obligations, including capital leases of $60.8 million , and other short-term borrowings for future fiscal years are: (Dollars in millions) 2019 2020 2021 2022 2023 Thereafter Total Maturities of long-term and other obligations $ 71.9 67.6 69.8 71.1 24.6 2,442.6 $ 2,747.6 Debt Issuance Costs Debt issuance costs associated with Operating Company's term loans, the USD Notes, and the Euro Notes are presented as a reduction to the carrying value of the debt while the debt issuance costs associated with the revolving credit facility are capitalized within prepaid expenses and other assets on the balance sheet. All debt issuance costs are amortized over the life of the related obligation through charges to interest expense in the Consolidated Statements of Operations. The unamortized total of debt issuance costs were $16.0 million and $11.5 million as of June 30, 2018 and June 30, 2017 , respectively. Amortization of debt issuance costs totaled $2.5 million and $2.3 million for the fiscal years ended June 30, 2018 and June 30, 2017 , respectively. Guarantees and Security Senior Secured Credit Facilities All obligations under the Credit Agreement, and the guarantees of those obligations, are secured by substantially all of the following assets of Operating Company and each guarantor (Operating Company's parent entity, PTS Intermediate Holdings LLC ("PTS Intermediate"), and each of Operating Company's material domestic subsidiaries), subject to certain exceptions: • a pledge of 100% of the capital stock of Operating Company and 100% of the equity interests directly held by Operating Company and each guarantor in any wholly owned material subsidiary of Operating Company or any guarantor (which pledge, in the case of any non-U.S. subsidiary of a U.S. subsidiary, will not include more than 65% of the voting stock of such non-U.S. subsidiary); and • a security interest in, and mortgages on, substantially all tangible and intangible assets of Operating Company and of each guarantor, subject to certain limited exceptions. The Euro Notes and the USD Notes All obligations under the Euro Notes and the USD 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. The Euro Notes and the USD Notes are each separately guaranteed by all of Operating Company's wholly owned U.S. subsidiaries that guarantee the senior secured credit facilities. Neither the Euro Notes nor the USD Notes are guaranteed by either PTS Intermediate 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 June 30, 2018 , the Company was in compliance with all material covenants related to 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 nor its dormant 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 U.S. GAAP, and is subject to important limitations. The Euro Notes and the USD Notes The Indentures governing the Euro Notes and the USD Notes (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 Euro Notes or the then-outstanding USD Notes, or either of the Trustees under the Indentures, may declare the applicable notes immediately due and payable; or in certain circumstances, the applicable notes will become automatically immediately due and payable. As of June 30, 2018, Operating Company was in compliance with all material covenants under the Indentures. Fair Value of Debt Measurements The estimated fair values of the USD Notes and the Euro Notes, each of which involves a Level 1 fair value estimate, are based on the quoted market prices of the instruments. The estimated fair value of the senior secured credit facilities, which is considered a Level 2 fair value estimate, is based on the quoted market prices for the same or similar issues or on the current rates offered for debt of the same remaining maturities and considers collateral, if any. The carrying amounts and the estimated fair values of financial instruments as of June 30, 2018 and June 30, 2017 are as follows: June 30, 2018 June 30, 2017 (Dollars in millions) Fair Value Measurement Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value Euro-denominated 4.75% Senior Notes Level 1 $ 438.4 $ 457.6 $ 424.3 $ 454.0 U.S. Dollar-denominated 4.875% Senior Notes Level 1 443.8 428.3 — — Senior Secured Credit Facilities & Other Level 2 1,839.1 1,768.0 1,655.4 1,653.1 Total $ 2,721.3 $ 2,653.9 $ 2,079.7 $ 2,107.1 |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Jun. 30, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | EARNINGS PER SHARE The reconciliations between basic and diluted earnings per share attributable to Catalent common shareholders for the fiscal years ended June 30, 2018 , 2017 and 2016 are as follows (in millions, except share and per share data): Year ended June 30, 2018 2017 2016 Net earnings $ 83.6 $ 109.8 $ 111.5 Weighted average shares outstanding 131,226,110 124,954,248 124,787,819 Weighted average dilutive securities issuable-stock plans 1,975,106 1,783,537 1,082,275 Total weighted average diluted shares outstanding 133,201,216 126,737,785 125,870,094 Earnings per share: Basic $ 0.64 $ 0.88 $ 0.89 Diluted $ 0.63 $ 0.87 $ 0.89 The computations of diluted earnings per share for the years ended June 30, 2018 , 2017 , and 2016 exclude the effect of shares potentially issuable under pre-IPO employee stock options totaling 0.4 million , 0.4 million , and 2.2 million options, respectively, because the vesting provisions of those awards specify performance or market-based conditions that had not been met as of the period end. Further, the computations of diluted earnings per share for the years ended June 30, 2018 , 2017 , and 2016 exclude the effect of shares potentially issuable under employee stock options and restricted stock units of approximately 0.4 million , 0.8 million , and 1.0 million shares, respectively, because they are anti-dilutive. |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 12 Months Ended |
Jun. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities | DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES Risk Management Objective of Using Derivatives The Company is exposed to fluctuations in the currency exchange rates applicable to its investments in foreign operations. While the Company does not actively hedge against changes in foreign currency, the Company has mitigated the exposure arising from its investments in its European operations by denominating a portion of its debt in euros. At June 30, 2018 , the Company had euro-denominated debt outstanding of $ 797.3 million that qualifies as a hedge of a net investment in foreign operations. For non-derivatives designated and qualifying as net investment hedges, the effective portion of the translation gains or losses are reported in accumulated other comprehensive income/(loss) as part of the cumulative translation adjustment. The unhedged portions of the translation gains or losses are reported in the Consolidated Statement of Operations. The following table includes net investment hedge activity during the fiscal years ended June 30, 2018 and June 30, 2017 : (Dollars in millions) June 30, June 30, Unrealized foreign exchange gain/(loss) within Other Comprehensive Income $ (12.5 ) $ (21.3 ) Unrealized foreign exchange gain/(loss) within the Consolidated Statement of Operations $ (11.8 ) $ (21.3 ) The net accumulated gain of this net investment as of June 30, 2018 within accumulated other comprehensive income/(loss) was $47.6 million . Amounts are reclassified out of accumulated other comprehensive income/(loss) into earnings when the entity in which the gains and losses reside is either sold or substantially liquidated. |
Income Taxes
Income Taxes | 12 Months Ended |
Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES Earnings from continuing operations before income taxes are as follows for the fiscal years ended 2018 , 2017 , and 2016 : Fiscal Year Ended (Dollars in millions) 2018 2017 2016 U.S. operations $ 13.3 $ 5.0 $ 60.0 Non-U.S. operations 138.7 130.6 84.9 $ 152.0 $ 135.6 $ 144.9 The provision /(benefit) for income taxes consists of the following for the fiscal years ended 2018 , 2017 , and 2016 : Fiscal Year Ended (Dollars in millions) 2018 2017 2016 Current: Federal $ 14.1 $ 2.1 $ (0.6 ) State and local 0.1 (0.4 ) (0.2 ) Non-U.S. 24.9 22.7 26.3 Total current $ 39.1 $ 24.4 $ 25.5 Deferred: Federal $ 24.2 $ 1.9 $ 19.6 State and local (1.0 ) 1.4 (4.8 ) Non-U.S. 6.1 (1.9 ) (6.6 ) Total deferred $ 29.3 $ 1.4 $ 8.2 Total provision $ 68.4 $ 25.8 $ 33.7 A reconciliation of the provision/(benefit) starting from the federal statutory income tax rate to the Company’s effective income tax rate is as follows for the fiscal years ended 2018 , 2017 , and 2016 : Fiscal Year Ended (Dollars in millions) 2018 2017 2016 Provision at U.S. federal statutory tax rate $ 42.7 $ 47.4 $ 50.7 State and local income taxes 3.0 (1.5 ) (3.0 ) Foreign tax rate differential (15.4 ) (25.7 ) (21.7 ) Permanent items 2.7 2.9 (2.3 ) Unrecognized tax positions (2.4 ) (0.3 ) 5.6 Tax valuation allowance 1.7 3.1 7.2 Withholding tax and other foreign taxes 1.3 (0.2 ) 0.6 Change in tax rate (3.6 ) 2.0 (3.2 ) R&D tax credit (2.4 ) (1.2 ) (1.4 ) Impact of U.S. tax reform 42.5 — — Other (1.7 ) (0.7 ) 1.2 $ 68.4 $ 25.8 $ 33.7 U.S. Tax Reform On December 22, 2017, the U.S. government enacted wide-ranging tax legislation, the Tax Cuts and Jobs Act (the "2017 Tax Act"). The 2017 Tax Act significantly revises U.S. tax law by, among other provisions, (a) lowering the applicable U.S. federal statutory income tax rate from 35% to 21% , (b) creating a partial territorial tax system that includes imposing a mandatory one-time transitional tax on previously deferred foreign earnings, (c) creating provisions regarding the (1) Global Intangible Low Tax Income ("GILTI"), (2) the Foreign Derived Intangible Income ("FDII") deduction, and (3) the Base Erosion Anti-Abuse Tax ("BEAT"), and (d) eliminating or reducing certain income tax deductions, such as interest expense, executive compensation expenses, and certain employee expenses. ASC 740 requires the effects of changes in tax laws to be recognized in the period in which the legislation is enacted. However, due to the complexity and significance of the 2017 Tax Act’s provisions, the SEC staff issued Staff Accounting Bulletin No. 118 ("SAB 118"), which allows companies to record the tax effects of the 2017 Tax Act on a provisional basis based on a reasonable estimate and then, if necessary, subsequently adjust such amounts during a limited measurement period as more information becomes available. The measurement period ends when a company has obtained, prepared, and analyzed the information necessary to finalize its accounting, but cannot extend beyond one year from enactment. As a result of the 2017 Tax Act, the Company revised its U.S. federal statutory tax rate for fiscal 2018 to 28.1% . Measurement of certain income tax effects that can be reasonably estimated (provisional amounts) For the year ended June 30, 2018, the Company recorded a net charge of $42.5 million within its income tax provision as a provisional estimate of the net accounting impact of the 2017 Tax Act in accordance with SAB 118. The net charge is comprised of the following: (i) expense of $37.0 million related to the mandatory transitional tax for deemed repatriation of deferred foreign income, net of the benefit of associated foreign tax credits; (ii) a $11.4 million charge relating to the impact of provisional changes in the Company's intentions with respect to future repatriation of undistributed earnings from non-U.S. subsidiaries, (iii) a $0.4 million charge related to the change to allowed deductions for executive compensation; and (iv) a benefit of $6.2 million related to a revaluation of the Company’s deferred tax assets and liabilities. Given the significant complexity of the 2017 Tax Act, anticipated guidance from the U.S. Treasury concerning implementation of the 2017 Tax Act, and the potential for additional guidance from the SEC or the FASB related to the 2017 Tax Act, the provisional estimates that the Company recorded may require adjustment during the measurement period. The provisional estimates were based on the Company’s present understanding of the 2017 Tax Act and other information available as of the time of the estimates, including assumptions and expectations about future events, such as its projected financial performance, and are subject to further refinement as additional information becomes available (including potential new or interpretative guidance issued by the SEC, the FASB, or the Internal Revenue Service). The Company continues to analyze the changes to certain income tax deductions, assess calculations of earnings and profits in certain foreign subsidiaries, including whether those earnings are held in cash or other assets, and gather additional data to compute the full impact of the 2017 Tax Act on the Company’s deferred and current tax assets and liabilities. Below is a discussion of the material provisional items in this charge. 100% Bonus Depreciation: The Company has provisionally elected to apply 100% bonus depreciation to all eligible assets placed in service after September 27, 2017. In addition, the Company has recorded a provisional amount for the state impact of accelerated depreciation under the 2017 Tax Act based on each state’s historical conformity with pre-2017 Tax Act accelerated depreciation law. Foreign tax effects : The one-time transitional tax is based on the Company's total post-1986 earnings and profits ("E&P") previously deferred from U.S. income taxes. The Company has determined on a provisional basis that its E&P for all foreign subsidiaries is $225.4 million , which is provisionally offset by current-year losses, net operating loss carryforwards, and foreign tax credits, with a remaining cash tax liability of $2.6 million . The Company's E&P is provisional, as the Company is still refining its calculation of the total post-1986 E&P for its foreign subsidiaries. Further, the transitional tax is based, in part, on the amount of those earnings held in cash and other specified assets. This amount may change when the Company finalizes the calculation of post-1986 foreign E&P previously deferred from U.S. income taxation and finalize the amounts held in cash or other specified assets. The Company continues to evaluate whether to assert indefinite reinvestment on a part or all of its foreign earnings as of June 30, 2018 and will record the tax effects of any change in these provisional amounts in accordance with SAB 118. The Company has recorded a provisional estimate of $11.4 million for U.S. and non-U.S. tax related to repatriation of undistributed earnings from certain non-U.S. subsidiaries. State tax effects: The Company has incorporated the impact of the 2017 Tax Act on a provisional basis into its analysis of the realizability of state deferred tax assets. Measurement of certain income tax effects that cannot be reasonably estimated Because of the complexity of the new GILTI tax rules, the Company continues to evaluate this provision of the 2017 Tax Act and the application of ASC 740. In accordance with ASC 740, the Company will make an accounting policy election of either (1) treating taxes due on future U.S. inclusions in taxable income related to GILTI as a current-period expense when incurred (the “period cost method”) or (2) factoring such amounts into the Company's measurement of its deferred taxes (the “deferred method”). The Company's selection of an accounting policy with respect to the new GILTI tax rules will depend, in part, on analyzing its global income to determine whether it expects to have future U.S. inclusions in taxable income related to GILTI and, if so, what the impact is expected to be. Whether the Company expects to have future U.S. inclusions in taxable income related to GILTI depends on not only the Company's current structure and estimated future results of global operations, but also its intent and ability to modify its structure. Therefore, the Company has not made any adjustment related to potential GILTI tax in its financial statements and has not made a policy decision regarding whether to record deferred tax on GILTI. Additionally, the Company continues to evaluate the potential impact of all other provisions, including but not limited to provisions regarding the FDII, BEAT, interest expense, and certain employee expense deductions, as well as the state tax impact of the 2017 Tax Act. The Company is currently in the process of analyzing its structure and estimated future results and, as a result, is not yet able to reasonably estimate the effect of these provisions of the 2017 Tax Act. Other Tax Matters 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 the geographic mix of pretax income and changes in the tax impact of permanent differences and other discrete tax items, which may have unique tax implications depending on the nature of the item. The effective tax rate for the fiscal year ended June 30, 2018 reflects the impact of U.S. tax reform, an increase in the valuation allowance, and the impact of permanent differences, offset by the benefit of an increase in foreign earnings taxed at rates lower than the U.S. statutory rate. The effective tax rate for the fiscal year ended June 30, 2017 reflects the impact of an increase in foreign earnings taxed at rates lower than the U.S. statutory rate. This benefit is offset by an increase in the valuation allowance and the impact of permanent differences, including disallowed transaction costs and deemed dividends, offset by the benefit from the stock compensation deduction and dividend income exempt from tax under local law. As of June 30, 2018 , the Company had $97.2 million of undistributed earnings from non-U.S. subsidiaries that would be subject to U.S. and other income taxes but are intended to be permanently reinvested in the Company's non-U.S. operations. As these earnings are considered permanently reinvested, no U.S. or non-U.S. tax provision has been accrued related to the repatriation of these earnings. It is not feasible to estimate the amount of U.S. tax that might be payable on the eventual remittance of such earnings. The Company does intend to repatriate foreign earnings as a result of the changes wrought by of the 2017 Tax Act. As such, the Company has recorded the U.S. and foreign income tax consequences of this repatriation. Deferred income taxes arise from temporary differences between financial reporting and tax reporting bases of assets and liabilities, and operating loss and tax credit carryforwards for tax purposes. The components of the deferred income tax assets and liabilities are as follows at June 30, 2018 and 2017 : Fiscal Year Ended (Dollars in millions) 2018 2017 Deferred income tax assets: Accrued liabilities $ 19.9 $ 27.4 Equity compensation 12.9 16.4 Loss and tax credit carryforwards 118.9 141.0 Foreign currency 9.5 11.5 Pension 29.4 39.4 Property-related 9.7 9.4 Intangibles 22.5 26.3 Other 1.9 25.7 Euro-denominated debt 11.5 22.8 Total deferred income tax assets $ 236.2 $ 319.9 Valuation allowance (86.2 ) (78.8 ) Net deferred income tax assets $ 150.0 $ 241.1 Fiscal Year Ended (Dollars in millions) 2018 2017 Deferred income tax liabilities: Accrued liabilities $ (0.8 ) $ (0.8 ) Foreign currency (0.9 ) (1.3 ) Property-related (50.2 ) (57.6 ) Goodwill and other intangibles (95.6 ) (151.1 ) Other (2.1 ) (8.1 ) Total deferred income tax liabilities $ (149.6 ) $ (218.9 ) Net deferred tax asset/(liability) $ 0.4 $ 22.2 Deferred tax assets and liabilities in the preceding table are in the following captions in the balance sheet at June 30, 2018 and 2017 : Fiscal Year Ended (Dollars in millions) 2018 2017 Non-current deferred tax asset $ 32.9 $ 53.9 Non-current deferred tax liability 32.5 31.7 Net deferred tax asset/(liability) $ 0.4 $ 22.2 At June 30, 2018 , the Company has federal net operating loss carryforwards of $30.6 million , all of which are subject to limitations under Section 382 of the Internal Revenue Code of 1986, as amended (the "Internal Revenue Code"). Of this amount, $0.9 million of net operating loss carryforwards were generated in years prior to April 10, 2007, when the Company was owned by Cardinal Health, Inc. ("Cardinal"). The remaining carryforwards are limited as a result of a change in ownership event that occurred when a former Catalent majority shareholder completed a secondary offering of a portion of its shares of the Company’s stock in March 2015. The Company's federal loss carryforwards will expire in fiscal years 2023 through 2036. At June 30, 2018 , the Company has state tax loss carryforwards of $422.2 million . Approximately $49.5 million of these losses are state tax losses generated in periods prior to the period ending June 30, 2007. Substantially all state carryforwards have a twenty -year carryforward period. At June 30, 2018 , the Company has international tax loss carryforwards of $145.1 million . Substantially all of these carryforwards are available for at least three years or have an indefinite carryforward period. The Company had valuation allowances of $86.2 million and $78.8 million as of June 30, 2018 and 2017, respectively, against its deferred tax assets. The Company considered all available evidence, both positive and negative, in assessing the need for a valuation allowance for deferred tax assets. Four possible sources of taxable income were evaluated when assessing the realization of deferred tax assets: • carrybacks of existing net operating losses; • future reversals of existing taxable temporary differences; • tax planning strategies; and • future taxable income exclusive of reversing temporary differences and carryforwards. The Company considered the need to maintain a valuation allowance on deferred tax assets based on management’s assessment of whether it is more likely than not that the Company would realize the value of its deferred tax assets based on future reversals of existing taxable temporary differences and the ability to generate sufficient taxable income within the carryforward period available under the applicable tax law. Further, there is no prior year to which we can carry back net operating losses. The deferred tax liabilities are expected to reverse in the same period and jurisdiction and are of the same character as the temporary differences giving rise to a portion of the deferred tax assets. The Company maintained a state valuation allowance on $418 million of apportioned net operating losses. Due to uncertainty around earnings, apportionment, certain restrictions at the state level, and a history of tax losses, anticipated utilization rates were not sufficient to overcome the negative evidence and allow a release. As part of the 2007 acquisition from Cardinal, the Company has been indemnified by Cardinal for tax liabilities that may arise in the future that relate to tax periods prior to April 10, 2007. The indemnification agreement includes, among other taxes, any and all federal, state and international income-based taxes as well as any interest and penalties that may be related thereto. Similarly, as part of its 2012 purchase of the CTS business from Aptuit, Inc., the Company was indemnified by Aptuit, Inc. for tax liabilities relating to the CTS business that may arise in the future that relate to tax periods prior to February 17, 2012. The indemnification agreement includes, among other taxes, any and all federal, state and international income-based taxes as well as any interest and penalties that may be related thereto. The amount of income taxes the Company may pay is subject to ongoing audits by federal, state and foreign tax authorities, which may result in proposed assessments. The Company’s estimate for the potential outcome for any uncertain tax issue is highly judgmental. The Company assesses its income tax positions and recorded benefits for all years subject to examination based upon management’s evaluation of the facts, circumstances and information available at the reporting date. For those tax positions for which it is more likely than not that a tax benefit will be sustained, the Company records the amount that has a greater than 50% likelihood of being realized upon settlement with a taxing authority that has full knowledge of all relevant information. Interest and penalties are accrued, where applicable. ASC 740 includes guidance on the accounting for uncertainty in income taxes recognized in the financial statements. This standard also 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 resolutions of any related appeals or litigation processes, based on the technical merits. As of June 30, 2018 , the Company had a total of $2.2 million of unrecognized tax benefits. A reconciliation of unrecognized tax benefits, excluding accrued interest, for June 30, 2018 , June 30, 2017 , and June 30, 2016 is as follows: (Dollars in millions) Balance at June 30, 2015 $ 66.9 Additions based on tax positions related to the current year 6.2 Additions for tax positions of prior years — Reductions for tax positions of prior years (11.0 ) Settlements — Lapse of the applicable statute of limitations (0.6 ) Balance at June 30, 2016 $ 61.5 Additions based on tax positions related to the current year 3.3 Additions for tax positions of prior years 0.1 Reductions for tax positions of prior years (6.8 ) Settlements (5.4 ) Lapse of the applicable statute of limitations (0.2 ) Balance at June 30, 2017 $ 52.5 Additions based on tax positions related to the current year 0.1 Additions for tax positions of prior years — Reductions for tax positions of prior years (2.7 ) Settlements (47.5 ) Lapse of the applicable statute of limitations (0.2 ) Balance at June 30, 2018 $ 2.2 Of this amount, $2.2 million and $41.4 million represent the amounts of unrecognized tax benefits that, if recognized, would favorably affect the effective income tax rate as of June 30, 2018 and June 30, 2017 , respectively. During the year ended June 30 2018, the Company settled an audit with the U.K. taxing authority, Her Majesty’s Revenue & Customs ("HMRC") for tax years 2009 through 2016 and, as a result of the settlement, also released the reserve related to 2017. The Company made a tax payment in settlement of $33.8 million . In addition, as part of the settlement, the Company agreed to a reduction in its net operating losses of $13.7 million and released the related reserve. In the normal course of business, the Company is subject to examination by taxing authorities throughout the world, including major jurisdictions such as Germany, the U.K., France, the United States, and various states. The Company is no longer subject to examinations by the relevant tax authorities for years prior to fiscal 2009. The Company recognizes interest and penalties related to uncertain tax positions in income tax expense. As of June 30, 2018 , the Company has $2.0 million of accrued interest related to uncertain tax positions, a decrease of $3.0 million from the prior year, the majority of which relates to the settlement with HMRC. The Company had $5.0 million and $5.6 million of accrued interest related to uncertain tax positions as of June 30, 2017 and 2016 , respectively. The portion of such interest and penalties subject to indemnification by Cardinal is $1.6 million , a decrease of $0.2 million from the prior year. |
Employee Retirement Benefit Pla
Employee Retirement Benefit Plans | 12 Months Ended |
Jun. 30, 2018 | |
Retirement Benefits [Abstract] | |
Employee Retirement Benefit Plans | EMPLOYEE RETIREMENT BENEFIT PLANS The Company sponsors various retirement plans, including defined benefit pension plans and defined contribution plans. Substantially all of the Company’s domestic non-union employees are eligible to participate in employer-sponsored retirement savings plans, which include plans created under Section 401(k) of the Internal Revenue Code, which plans provide for the Company to match a portion of employee contributions. The Company’s contributions to the plans are discretionary but are subject to certain minimum requirements as specified in the plans under law. The Company uses a measurement date of June 30 for all of its retirement and postretirement benefit plans. In addition, the Company has recorded obligations related to its withdrawal from a multi-employer pension plan related to three former sites. The Company’s withdrawal from this multi-employer pension plan has been classified as a mass withdrawal under the Multiemployer Pension Plan Amendments Act of 1980, as amended, and the Pension Protection Act of 2006. The withdrawal from the plan resulted in the recognition of liabilities associated with the Company’s long-term obligations in prior-year periods not presented, which were primarily recorded as an expense within discontinued operations. The estimated discounted value of the projected contributions related to these plans is $39.0 million and $39.1 million as of June 30, 2018 and June 30, 2017 , respectively. The annual cash impact associated with the Company’s long-term obligation arising from this plan is $1.7 million per year. The following table provides a reconciliation of the change in projected benefit obligation and fair value of plan assets for the defined benefit retirement and other retirement plans, excluding the multi-employer pension plan liability: Retirement Benefits Other Post-Retirement Benefits June 30, June 30, (Dollars in millions) 2018 2017 2018 2017 Accumulated Benefit Obligation $ 322.7 $ 322.4 $ 2.8 $ 2.8 Change in Benefit Obligation Benefit obligation at beginning of year 330.6 336.6 2.8 3.6 Company service cost 3.5 3.2 — — Interest cost 7.3 6.6 — 0.1 Employee contributions 0.3 — — — Plan amendments — — — — Curtailments — — — — Settlements (0.2 ) — — — Special termination benefits — — — — Divestitures — — — — Other — 5.5 — — Benefits paid (14.8 ) (11.0 ) (0.2 ) (0.8 ) Actual expenses — — — — Actuarial (gain)/loss (4.5 ) (6.4 ) 0.2 (0.1 ) Exchange rate gain/(loss) 8.9 (3.9 ) — — Benefit obligation at end of year 331.1 330.6 2.8 2.8 Change in Plan Assets Fair value of plan assets at beginning of year 244.6 227.6 — — Actual return on plan assets 10.6 18.4 — — Company contributions 11.2 10.6 0.2 0.7 Employee contributions 0.3 — — — Settlements (0.2 ) — — — Special company contributions to fund termination benefits — — — — Divestitures — — — — Other — 4.5 — — Benefits paid (14.8 ) (11.0 ) (0.2 ) (0.7 ) Actual expenses — — — — Exchange rate gain/(loss) 6.4 (5.5 ) — — Fair value of plan assets at end of year 258.1 244.6 — — Funded Status Funded status at end of year (73.0 ) (86.0 ) (2.8 ) (2.8 ) Employer contributions between measurement date and reporting date — — — — Net pension asset (liability) (73.0 ) (86.0 ) (2.8 ) (2.8 ) The following table provides a reconciliation of the net amount recognized in the Consolidated Balance Sheets: Retirement Benefits Other Post-Retirement Benefits June 30, June 30, (Dollars in millions) 2018 2017 2018 2017 Amounts Recognized in Statement of Financial Position Noncurrent assets $ 18.0 $ 2.7 $ — $ — Current liabilities (0.8 ) (0.8 ) (0.3 ) (0.3 ) Noncurrent liabilities (90.2 ) (87.9 ) (2.5 ) (2.5 ) Total asset/(liability) (73.0 ) (86.0 ) (2.8 ) (2.8 ) Amounts Recognized in Accumulated Other Comprehensive Income Transition (asset)/obligation — — — — Prior service cost (0.5 ) (0.5 ) — — Net (gain)/loss 53.0 58.2 (1.1 ) (1.5 ) Total accumulated other comprehensive income at the end of the year 52.5 57.7 (1.1 ) (1.5 ) Additional Information for Plan with ABO in Excess of Plan Assets Projected benefit obligation 157.8 153.1 2.8 2.8 Accumulated benefit obligation 152.1 147.5 2.8 2.8 Fair value of plan assets 66.7 64.5 — — Additional Information for Plan with PBO in Excess of Plan Assets Projected benefit obligation 157.8 153.1 2.8 2.8 Accumulated benefit obligation 152.1 147.5 2.8 2.8 Fair value of plan assets 66.7 64.5 — — Components of Net Periodic Benefit Cost Service cost 3.5 3.2 — — Interest cost 7.3 6.6 — 0.1 Expected return on plan assets (11.9 ) (11.0 ) — — Amortization of unrecognized: Transition (asset)/obligation — — — — Prior service cost — — — — Net (gain)/loss 2.4 4.4 (0.1 ) (0.2 ) Net periodic benefit cost 1.3 3.2 (0.1 ) (0.1 ) Retirement Benefits Other Post-Retirement Benefits June 30, June 30, (Dollars in millions) 2018 2017 2018 2017 Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income Net (gain)/loss arising during the year $ (3.1 ) $ (13.8 ) 0.2 (0.1 ) Prior service cost (credit) during the year — — — — Transition asset/(obligation) recognized during the year — — — — Prior service cost recognized during the year — — — — Net gain/(loss) recognized during the year (2.4 ) (4.4 ) 0.1 0.1 Exchange rate gain/(loss) recognized during the year 0.3 (0.5 ) — — Total recognized in other comprehensive income $ (5.2 ) $ (18.7 ) $ 0.3 $ — Total Recognized in Net Periodic Benefit Cost and Other Comprehensive Income Total recognized in net periodic benefit cost and other comprehensive income $ (3.9 ) $ (15.5 ) $ 0.3 $ (0.1 ) Estimated Amounts to be Amortized from Accumulated Other Comprehensive Income into Net Periodic Benefit Cost Amortization of: Transition (asset)/obligation $ — $ — $ — $ — Prior service cost/(credit) — — — — Net (gain)/loss 2.6 2.3 (0.1 ) (0.1 ) Financial Assumptions Used to Determine Benefit Obligations at the Balance Sheet Date Discount rate (%) 2.50 % 2.49 % 3.79 % 3.28 % Rate of compensation increases (%) 2.03 % 2.09 % n/a n/a Financial Assumptions Used to Determine Net Periodic Benefit Cost for Financial Year Discount rate (%) 2.49 % 2.33 % 3.28 % 2.89 % Rate of compensation increases (%) 2.04 % 2.09 % n/a n/a Expected long-term rate of return (%) 5.09 % 5.46 % n/a n/a Expected Future Contributions Fiscal year 2019 $ 9.4 $ 10.3 $ 0.3 $ 0.3 Retirement Benefits Other Post-Retirement Benefits June 30, June 30, (Dollars in millions) 2018 2017 2018 2017 Expected Future Benefit Payments Financial year 2019 $ 11.0 $ 10.8 $ 0.3 $ 0.3 2020 12.2 10.6 0.3 0.3 2021 11.8 12.3 0.3 0.3 2022 12.3 11.6 0.3 0.2 2023 13.2 12.1 0.2 0.2 2024-2028 77.7 73.7 1.0 0.9 Actual Asset Allocation (%) Equities 22.7 % 22.9 % — % — % Government bonds 28.9 % 27.0 % — % — % Corporate bonds 14.1 % 12.5 % — % — % Property 2.4 % 2.5 % — % — % Insurance contracts 9.3 % 9.2 % — % — % Other 22.6 % 25.9 % — % — % Total 100.0 % 100.0 % — % — % Actual Asset Allocation (Amount) Equities $ 58.7 $ 56.0 — — Government bonds 74.5 66.0 — — Corporate bonds 36.4 30.5 — — Property 6.2 6.2 — — Insurance contracts 24.0 22.5 — — Other 58.3 63.4 — — Total 258.1 244.6 — — Target Asset Allocation (%) Equities 22.8 % 23.8 % — % — % Government bonds 29.7 % 29.6 % — % — % Corporate bonds 13.6 % 12.1 % — % — % Property 2.9 % 2.7 % — % — % Insurance contracts 10.1 % 10 % — % — % Other 20.9 % 21.8 % — % — % Total 100.0 % 100.0 % — % — % The Company employs a building block approach in determining the long-term rate of return for plan assets, with proper consideration of diversification and rebalancing. Historical markets are studied and long-term historical relationships between equities and fixed income are preserved consistent with the widely accepted capital market principle that assets with higher volatility generate a greater return over the long run. Current market factors such as inflation and interest rates are evaluated before long-term capital market assumptions are determined. Peer data are reviewed to check for reasonability and appropriateness. Plan assets are recognized and measured at fair value in accordance with the accounting standards regarding fair value measurements. The following are valuation techniques used to determine the fair value of each major category of assets: • Short-term investments, equity securities, fixed-income securities, and real estate are valued using quoted market prices or other valuation methods, and thus are classified within Level 1 or Level 2. • Insurance contracts and other types of investments include investments with some observable and unobservable prices that are adjusted by cash contributions and distributions, and thus are classified within Level 2 or Level 3. • Other assets as of June 30, 2018 and June 30, 2017 , including $26.9 million and $36.6 million of investments in hedge funds related to the Company's U.K. pension plan, are classified as Level 2. The following table provides a summary of plan assets that are measured in fair value as of June 30, 2018 , aggregated by the level in the fair value hierarchy within which those measurements fall: (Dollars in millions) Level 1 Level 2 Level 3 Investments Measured at Net Asset Value Total Assets Equity securities $ 1.8 $ 56.9 $ — $ — $ 58.7 Debt securities 0.1 110.8 — — 110.9 Real estate 0.4 3.9 — 1.9 6.2 Other 0.7 60.7 20.9 — 82.3 Total $ 3.0 $ 232.3 $ 20.9 $ 1.9 $ 258.1 Level 3 other assets consist of an insurance contract in the U.K. to fulfill the benefit obligations for a portion of the participant benefits. The value of this commitment is determined using the same assumptions and methods used to value the UK Retirement & Death Benefit Plan pension liability. Level 3 other assets also include the partial funding of a pension liability relating to current and former employees of the Company’s Eberbach, Germany facility through a Company promissory note or loan with an annual rate of interest of 5% . The value of this commitment fluctuates due to contributions and benefit payments in addition to loan interest. The following table provides a summary of plan assets that are measured in fair value as of June 30, 2017 , aggregated by the level in the fair value hierarchy within which those measurements fall: (Dollars in millions) Level 1 Level 2 Level 3 Investments Measured at Net Asset Value Total Assets Equity securities $ — $ 56.0 $ — $ — $ 56.0 Debt securities — 96.5 — — 96.5 Real estate — 4.5 — 1.7 6.2 Other — 65.8 20.1 — 85.9 Total $ — $ 222.8 $ 20.1 $ 1.7 $ 244.6 Level 3 other assets consist of an insurance contract in the U.K. to fulfill the benefit obligations for a portion of the participant benefits. The value of this commitment is determined using the same assumptions and methods used to value the UK Retirement & Death Benefit Plan pension liability. Level 3 other assets also include the partial funding of a pension liability relating to current and former employees of the Company’s Eberbach, Germany facility through a Company promissory note or loan with an annual rate of interest of 5% . The value of this commitment fluctuates due to contributions and benefit payments in addition to loan interest. The following table provides a reconciliation of the beginning and ending balances of level 3 assets as well as the changes during the period attributable to assets held and those purchases, sales, settlements, contributions and benefits that were paid: Asset Category Allocations - June 30, 2018 Total (Level 3) Fair Value Measurement Fair Value Measurement Fair Value Measurement (Dollars in millions) Using Significant Using Significant Using Significant Unobservable Inputs Unobservable Inputs Unobservable Inputs Total (Level 3) Insurance Contracts Other Beginning Balance at June 30, 2017 $ 20.1 $ 3.0 $ 17.1 Actual return on plan assets: Relating to assets still held at the reporting date 1.5 0.1 1.4 Relating to assets sold during the period — — — Purchases, sales, settlements, contributions and benefits paid (1.8 ) (0.2 ) (1.6 ) Transfers in and/or out of Level 3 1.1 — 1.1 Ending Balance at June 30, 2018 $ 20.9 $ 2.9 $ 18.0 The investment policy reflects the long-term nature of the plans’ funding obligations. The assets are invested to provide the opportunity for both income and growth of principal. This objective is pursued as a long-term goal designed to provide required benefits for participants without undue risk. It is expected that this objective can be achieved through a well-diversified asset portfolio. All equity investments are made within the guidelines of quality, marketability, and diversification mandated by the Employee Retirement Income Security Act of 1974, as amended ("ERISA") (for plans subject to ERISA) and other relevant legal requirements. Investment managers are directed to maintain equity portfolios at a risk level approximately equivalent to that of the specific benchmark established for that portfolio. Assets invested in fixed income securities and pooled fixed-income portfolios are managed actively to pursue opportunities presented by changes in interest rates, credit ratings, or maturity premiums. Other Post-Retirement Benefits 2018 2017 Assumed Healthcare Cost Trend Rates at the Balance Sheet Date Healthcare cost trend rate – initial (%) Pre-65 n/a n/a Post-65 (1.42 )% 8.02 % Healthcare cost trend rate – ultimate (%) Pre-65 n/a n/a Post-65 4.83 % 4.81 % Year in which ultimate rates are reached Pre-65 n/a n/a Post-65 2026 2026 Effect of 1% Change in Healthcare Cost Trend Rate Healthcare cost trend rate up 1% on APBO at balance sheet date $ 120,821 $ 122,687 on total service and interest cost 3,118 2,884 Effect of 1% Change in Healthcare Cost Trend Rate Healthcare cost trend rate down 1% on APBO at balance sheet date $ (108,873 ) $ (109,956 ) on total service and interest cost (2,804 ) (2,583 ) Expected Future Contributions Fiscal year 2019 $ 311,318 $ 277,080 |
Equity and Accumulated Other Co
Equity and Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Jun. 30, 2018 | |
Equity [Abstract] | |
Equity | EQUITY AND ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) Description of Capital Stock The Company is authorized to issue 1,000,000,000 shares of common stock, par value $0.01 per share, and 100,000,000 shares of preferred stock, par value $0.01 per share. In accordance with the Company’s amended and restated certificate of incorporation, each share of common stock has one vote, and the common stock votes together as a single class. Public Stock Offering On September 29, 2017, the Company completed a public offering of its common stock (the "2017 Equity Offering"), pursuant to which the Company sold 7.4 million shares, including shares sold pursuant to an exercise of the underwriters' over-allotment option, at a price of $39.10 per share, before underwriting discounts and commissions. Net of these discounts and commissions and other offering expenses, the Company's proceeds from the 2017 Equity Offering, including the over-allotment exercise, totaled $277.8 million . The net proceeds of the 2017 Equity Offering, after payment of the discount and related fees and expenses, were used to fund a portion of the consideration for the Catalent Indiana acquisition due at its closing. See also Note 18, concerning a public offering of the Company's common stock that occurred after June 30, 2018. Outstanding Stock Shares outstanding include shares of unvested restricted stock. Unvested restricted stock included in reportable shares outstanding was 0.4 million shares as of June 30, 2018. 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. Accumulated other comprehensive income/(loss) Accumulated other comprehensive income/(loss) by component and changes for the fiscal years June 30, 2018 , June 30, 2017 , and June 30, 2016 consist of: (Dollars in millions) Foreign Currency Translation Adjustments Available for Sale Investment Adjustments Deferred Compensation Pension Liability Adjustments Other Comprehensive Income/(Loss) Balance at June 30, 2015 $ (130.0 ) $ — $ 3.8 $ (47.8 ) $ (174.0 ) Activity, net of tax (118.8 ) — (3.8 ) (9.1 ) (131.7 ) Balance at June 30, 2016 (248.8 ) — — (56.9 ) (305.7 ) Activity, net of tax (31.9 ) 10.5 — 13.0 (8.4 ) Balance at June 30, 2017 (280.7 ) 10.5 — (43.9 ) (314.1 ) Activity, net of tax (4.4 ) (11.6 ) — 4.3 (11.7 ) Balance at June 30, 2018 $ (285.1 ) $ (1.1 ) $ — $ (39.6 ) $ (325.8 ) The Company held an investment in a specialty pharmaceutical company, which was treated as a cost method investment prior to the second quarter of fiscal 2017. In the second quarter of fiscal 2017, the specialty pharmaceutical company became publicly traded after an initial public offering, and, as a result, the Company recognized an initial unrealized gain on the investment of $15.3 million , net of tax. The Company recorded an other-than-temporary impairment in the fourth quarter of fiscal 2018, and the investment has been fully impaired. This amount is reflected in accumulated other comprehensive income. The components of the changes in the cumulative translation adjustment, minimum pension liability, and available for sale investment for the fiscal years ended June 30, 2018 , June 30, 2017 , and June 30, 2016 consists of: Year Ended June 30, (Dollars in millions) 2018 2017 2016 Foreign currency translation adjustments: Net investment hedge $ (12.5 ) $ (21.3 ) $ 1.8 Long term inter-company loans 9.3 (14.3 ) (65.0 ) Translation adjustments (10.1 ) (3.8 ) (54.9 ) Total foreign currency translation adjustments, pretax (13.3 ) (39.4 ) (118.1 ) Tax expense/(benefit) (8.9 ) (7.5 ) 0.7 Total foreign currency translation adjustments, net of tax $ (4.4 ) $ (31.9 ) $ (118.8 ) Net change in minimum pension liability Net gain/(loss) arising during the year $ 2.9 $ 13.9 $ (16.4 ) Net (gain)/loss recognized during the year 2.3 4.3 3.4 Foreign exchange translation and other (0.3 ) 0.5 (0.2 ) Total minimum pension liability, pretax 4.9 18.7 (13.2 ) Tax expense/(benefit) 0.6 5.7 (4.1 ) Net change in minimum pension liability, net of tax $ 4.3 $ 13.0 $ (9.1 ) Net change in available for sale investment: Net gain/(loss) arising during the year $ (16.2 ) $ 16.2 $ — Net (gain)/loss recognized during the year — — — Foreign exchange translation and other — — — Total change in available for sale investment, pretax (16.2 ) 16.2 — Tax expense/(benefit) (4.6 ) 5.7 — Net change in available for sale investment, net of tax $ (11.6 ) $ 10.5 $ — |
Equity Based Compensation
Equity Based Compensation | 12 Months Ended |
Jun. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Disclosure of Compensation Related Costs, Share-based Payments | EQUITY-BASED COMPENSATION The Company’s stock-based compensation is comprised of stock options, restricted stock units, and restricted stock. 2007 Stock Incentive Plan Awards issued under the Company’s pre-IPO incentive compensation plan, known as the 2007 PTS Holdings Corp. Stock Incentive Plan, as amended (the "2007 Plan"), were generally issued for the purpose of retaining key employees and directors. 2014 Omnibus Incentive Plan In connection with the IPO, the Company’s Board of Directors adopted, and the holder of a majority of the shares approved, the 2014 Omnibus Incentive Plan effective July 31, 2014 (the "2014 Plan"). The 2014 Plan provides certain members of management, employees, and directors of the Company and its subsidiaries with the opportunity to obtain various incentives, including grants of stock options, restricted stock units, and restricted stock. Awards in respect of a maximum of 6,700,000 shares of common stock may be issued under the 2014 Plan. Stock Compensation Expense Stock compensation expense recognized in the consolidated statements of income was $27.2 million , $20.9 million and $10.8 million in fiscal 2018 , 2017 , and 2016 , respectively. All stock compensation expense is classified in selling, general and administrative expenses along with other compensation earned by participants. Stock compensation expense is based on awards expected to vest, the Company has elected to account for forfeitures as they occur. Stock Options The Company adopted two forms of non-qualified stock option agreements (each, a "Form Option Agreement") for awards granted under the 2007 Plan. Under the Company’s Form Option Agreement adopted in 2009, a portion of the stock option awards vest in equal annual installments over a five-year period contingent solely upon the participant’s continued employment with the Company, or one of its subsidiaries, another portion of the stock option awards vest over a specified performance period upon achievement of pre-determined operating performance targets over time, and the remaining portion of the stock option awards vest upon realization of certain internal rates of return or multiple of investment goals. Under the Company’s other Form Option Agreement, adopted in 2013, a portion of the stock option awards vest over a specified performance period upon achievement of pre-determined operating performance targets over time while the other portion of the stock option awards vest upon realization of a specified multiple of investment goal. The Form Option Agreements include certain forfeiture provisions upon a participant’s separation from service with the Company. Following the IPO, the Company decided not to grant any further award under the 2007 Plan; however, all outstanding awards granted prior to the IPO remained outstanding in accordance with the terms of the 2007 Plan. Stock options were also granted under the 2014 Plan during fiscal 2018 , 2017 , and 2016 for selected executives of the Company, with an aggregate intrinsic value of $2.3 million, $5.3 million and $0 million , which represents approximately 442,000 , 516,000 , and 369,000 shares of common stock for the fiscal 2018 , 2017 , and 2016 grants, respectively. Each stock option vests in equal annual installments over a four-year period from the date of grant, contingent upon the participant’s continued employment with the Company. Methodology and Assumptions All outstanding stock options have an exercise price equal to the fair market value on the date of grant. All outstanding stock options have a contractual term of 10 years, subject to forfeiture under certain conditions upon separation of employment. The grant-date fair value, adjusted for estimated forfeitures, is recognized as expense on a graded-vesting basis over the vesting period. The fair value of stock options is determined using the Black-Scholes-Merton option pricing model for service and performance-based awards, and an adaptation of the Black-Scholes-Merton option valuation model, which takes into consideration the internal rate of return thresholds, for market-based awards. This model adaptation is essentially equivalent to the use of a path dependent-lattice model. The weighted average of assumptions used in estimating the fair value of stock options granted during each year were as follows: Year Ended June 30, 2018 2017 2016 Expected volatility 24% - 27% 25% - 27% 28% - 31% Expected life (in years) 6.25 6.25 6.25 Risk-free interest rates 1.9% - 2.1% 1.2% - 1.3% 1.5% - 1.7% Dividend yield None None None The Company commenced public trading of its common stock upon its IPO in July 2014, and, as a result, has limited relevant historical volatility experience; therefore, the expected volatility assumption is based on the historical volatility of the closing share prices of a comparable peer group. The Company selected peer companies from the pharmaceutical industry with similar characteristics, including market capitalization, number of employees and product focus. In addition, since the Company does not have a pattern of exercise behavior of option holders, the Company used the simplified method to determine the expected life of each option, which is the mid-point between the vesting date and the end of the contractual term. The risk-free interest-rate for the expected life of the option is based on the comparable U.S. Treasury yield curve in effect at the time of grant. The weighted-average grant-date fair value of stock options in fiscal 2018 , 2017 , and 2016 was $10.39 per share, $7.13 per share and $10.68 per share, respectively. The following table summarizes stock option activity and shares subject to outstanding options for the year ended June 30, 2018 : Time Performance Market Weighted Weighted Weighted Weighted Average Number Average Aggregate Number Average Aggregate Number Average Aggregate Exercise of Contractual Intrinsic of Contractual Intrinsic of Contractual Intrinsic Price shares Term Value shares Term Value shares Term Value Outstanding as of June 30, 2017 $ 20.15 1,821,616 7.13 $ 23,380,986 623,722 5.72 $ 10,587,364 340,068 3.21 $ 7,661,773 Granted $ 35.98 441,901 — — — — — — — — Exercised $ 16.79 (411,379 ) — 8,562,833 (23,427 ) — 491,537 (222,601 ) — 6,289,313 Forfeited $ 25.80 (139,302 ) — — (49,672 ) — — — — — Expired / Canceled $ — — — — — — — — — — Outstanding as of June 30, 2018 $ 23.57 1,712,836 7.01 27,418,051 550,623 4.79 13,052,439 117,467 3.35 3,154,413 Vest and expected to vest as of June 30, 2018 $ 24.35 1,712,836 7.01 27,418,051 250,365 4.54 5,768,641 117,467 3.35 3,154,413 Vested and exercisable as of June 30, 2018 $ 19.54 718,232 5.56 $ 15,040,412 236,337 4.26 $ 5,135,857 117,467 3.35 $ 3,154,413 In fiscal 2018 , participants exercised options to purchase approximately 240,000 net settled shares, resulting in $5.5 million of cash paid on behalf of participants for withholding taxes. The intrinsic value of the options exercised in fiscal 2018 was $15.3 million . The total fair value of options vested during the period was $3.6 million . In fiscal 2017 , participants exercised options to purchase approximately 304,000 net settled shares, resulting in $5.4 million of cash paid on behalf of participants for withholding taxes. The intrinsic value of the options exercised in fiscal 2017 was $14.9 million . The total fair value of options vested during the period was $4.0 million . As of June 30, 2018 , $2.1 million of unrecognized compensation cost related to granted and not forfeited stock options is expected to be recognized as expense over a weighted-average period of approximately 2.7 years . Restricted Stock and Restricted Stock Units The Company may grant to members of management and the Company's board of directors under the 2014 Plan shares of restricted stock and units each representing the right to one share of common stock ("restricted stock units"). The Company has granted to directors and members of management restricted stock units and restricted stock that vest over specified periods of time as well as restricted stock units and restricted stock that have certain performance-related vesting requirements ("performance share units" and "performance shares," respectively). The restricted stock and restricted stock units granted during fiscal 2018 and 2017 had grant date fair values aggregating $44.6 million and $24.8 million , respectively, which represent approximately 1,275,000 and 984,000 shares of common stock, respectively. Under the 2014 Plan, the performance shares and performance share units vest upon achieving Company financial performance metrics established at the outset of the three -year performance period associated with each grant. The metrics for the fiscal 2015 performance share unit grant were based on performance against a mix of cumulative revenue and cumulative Adjusted EBITDA targets, and these grants vested in fiscal 2018 based on achievement against those targets. Note that Adjusted EBITDA (which is called "Consolidated EBITDA" in the Credit Agreement) is calculated based on the definition in the Credit Agreement, is not defined under U.S. GAAP, and is subject to important limitations. The metrics for the fiscal 2016, 2017, and 2018 performance share and performance share unit grants were based on performance against a mix of adjusted earnings-per-share ("EPS") targets and relative total shareholder return ("RTSR") targets. Note that adjusted EPS is calculated as a quotient of tax-effected Adjusted EBITDA by the weighted average number of fully diluted shares, is not defined under U.S. GAAP, and is subject to important limitations. The performance shares and performance share units vest following the end of their respective three-year performance periods upon a determination of achievement relative to the targets. Each quarter during the period in which the performance shares and performance share units are outstanding, the Company estimates the likelihood of such achievement by the end of the performance period in order to determine the probability of vesting. The number of shares actually earned at the end of the three-year period will vary, based only on actual performance, from 0% to 200%, or from 0% to 150%, of the target number of performance shares or performance share units specified on the date of grant, in the case of adjusted EPS and RTSR grants, respectively. Time-based restricted stock units and restricted stock vest on the second or third anniversary of the date of grant subject to the participant’s continued employment with the Company. Methodology and Assumptions - Expense Recognition and Grant Date Fair Value The fair values of (a) time-based restricted stock units and restricted stock are recognized as expense on a cliff-vesting schedule over the vesting period of two to three years and (b) performance shares and performance share units are re-assessed quarterly as discussed above. The grant date fair values of both time-based and performance-based shares and units are determined based on the number of shares subject to the grants and the fair value of the Company’s common stock on the dates of the grants, as determined by the closing market prices. Time-Based Restricted Stock Units and Restricted Stock The following table summarizes activity in unvested time-based restricted stock units and restricted stock for the year ended June 30, 2018 : Time-Based Stock and Units Weighted Average Grant-Date Fair Value Unvested as of June 30, 2017 914,911 $ 25.34 Granted 487,080 38.64 Vested 270,895 22.65 Forfeited 126,860 30.96 Unvested as of June 30, 2018 1,004,236 $ 31.81 Adjusted EPS and Other Performance Shares and Performance Share Units The following table summarizes activity in unvested adjusted EPS and Other performance shares and performance share units for the year ended June 30, 2018 : EPS and Other Shares and Units Weighted Average Grant-Date Fair Value Unvested as of June 30, 2017 660,600 $ 24.81 Granted 442,565 31.92 Vested 348,574 22.26 Forfeited 176,735 29.68 Unvested as of June 30, 2018 577,856 $ 30.30 RTSR Performance Shares and Performance Share Units The fair value of the RTSR performance shares and performance share units is determined using the Monte Carlo pricing model because the number of shares to be awarded is subject to a market condition. The Monte Carlo simulation is a generally accepted statistical technique used to simulate a range of possible future outcomes. Because the valuation model considers a range of possible outcomes, compensation cost is recognized regardless of whether the market condition is actually satisfied. The assumptions used in estimating the fair value of the RTSR performance shares and performance share units granted during each year were as follows: Year Ended June 30, 2018 2017 Expected volatility 32 % - 33% 32 % - 35% Expected life (in years) 2.4 - 2.9 2.4 - 2.9 Risk-free interest rates 1.4% - 2.1% 0.85% - 1.36% Dividend yield None None The following table summarizes activity in unvested RTSR performance shares and performance share units for the year ended June 30, 2018 : RTSR Shares and Units Weighted Average Grant-Date Fair Value Unvested as of June 30, 2017 306,634 $ 30.30 Granted 344,990 33.76 Vested — — Forfeited 168,527 31.15 Unvested as of June 30, 2018 483,097 $ 32.47 In fiscal 2018 , participants vested and settled 420,000 net settled shares, resulting in $8.2 million of cash paid on behalf of participants for withholding taxes. In fiscal 2017 , participants vested and settled 33,000 net settled shares, resulting in $0.0 million of cash paid on behalf of participants for withholding taxes. As of June 30, 2018 , $24.0 million of unrecognized compensation cost related to restricted stock and restricted stock units is expected to be recognized as expense over a weighted-average period of approximately 1.8 years. The weighted-average grant-date fair value of restricted stock and restricted stock units in fiscal years 2018 , 2017 , and 2016 was $34.99 , $25.20 , and $32.82 , respectively. The fair value of restricted stock units vested in fiscal 2018 , 2017 , and 2016 was $13.6 million , $1.1 million , and $1.2 million , respectively. No restricted stock vested in fiscal 2018, 2017, or 2016. |
Other Income _ Expense Other In
Other Income / Expense Other Income / Expense | 12 Months Ended |
Jun. 30, 2018 | |
Other Income and Expenses [Abstract] | |
Other Income and Other Expense Disclosure | OTHER (INCOME) / EXPENSE, NET The components of Other (Income) / Expense, net for the twelve months ended June 30, 2018 , 2017 , and 2016 are as follows: Twelve Months Ended (Dollars in millions) 2018 2017 2016 Other (income)/expense, net Debt refinancing costs (1) $ 11.8 $ 4.3 $ — Foreign currency (gains) and losses (2) (4.6 ) 4.2 (12.6 ) Other (3) 0.5 — (3.0 ) Total other (income)/expense $ 7.7 $ 8.5 $ (15.6 ) (1) The expense in the twelve months ended June 30, 2018 includes $11.8 million of financing charges related to the Debt Offering and the Third Amendment and a $6.1 million charge for commitment fees paid during the first quarter of fiscal 2018 on the Bridge Facility. The twelve months ended June 30, 2017 include financing charges of $4.3 million related to the December 2016 offering of the Euro Notes and repricing and partial paydown of the Company's term loans under its senior secured credit facilities. (2) Foreign currency (gains) and losses include both cash and non-cash transactions. (3) Included within Other are realized gains associated with the sale of available-for-sale investments of $3.8 million during the fiscal year ended June 30, 2016. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Jun. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES Previous regulatory suspension of a manufacturing facility The Company continues to resolve claims stemming from a prior, temporary, regulatory suspension of one of our manufacturing facilities. To date, more than 30 customers of the facility have presented claims against the Company for alleged losses, including lost profits and other types of indirect or consequential damages that they have allegedly suffered due to the temporary suspension, or have reserved their right to do so subsequently. The Company is unable to estimate at this time either the total value of claims asserted, or that are reasonably possible to be asserted, with respect to this matter or the likely cost to resolve them, although (a) through June 30, 2018, the Company settled 22 customer claims and (b) certain remaining customers have presented the Company with support for other claims having an aggregate claim value of approximately $1 million . To date, none of the asserted claims takes into account limitations of liability in the contracts governing these claims or any other defense that the Company may assert. In addition, the Company may have insurance for additional costs it may incur as a result of such claims, subject to various deductibles and other limitations, but there can be no assurance as to the aggregate amount or timing of insurance recoveries against any such costs. SEC inquiry into Juniper Pharmaceuticals, Inc. On August 14, 2018, Operating Company acquired Juniper Pharmaceuticals, Inc., a Delaware corporation (“Juniper”), pursuant to an Agreement and Plan of Merger (the “Merger Agreement”) between Operating Company and Juniper. On November 14, 2016, Juniper filed with the SEC restated audited consolidated financial statements for the fiscal years ended December 31, 2013 through December 31, 2015, including the unaudited consolidated financial information for each quarterly period within the fiscal years ended December 31, 2014 and 2015, and restated unaudited consolidated financial statements for the quarters ended March 31, 2016 and June 30, 2016 and the related quarters in 2015, in order to correct certain timing errors regarding how it recognized revenue from a supply contract with an affiliate of Merck KGaA. On January 24, 2017, Juniper received a subpoena from the SEC requesting information concerning these restatements and related issues. Juniper responded to the subpoena and is cooperating with the SEC’s inquiry, including the taking of testimony from former Juniper employees and others. The Company understands that the inquiry is ongoing but does not believe the outcome of the investigation will be material to it; nonetheless, the Company cannot can provide any assurance regarding that outcome. Other 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 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. Rental Payments and Expense The future minimum rental payments for operating leases having initial or remaining non-cancelable lease terms in excess of one year at June 30, 2018 are: (Dollars in millions) 2019 2020 2021 2022 2023 Thereafter Total Minimum rental payments $ 10.5 $ 7.0 $ 6.1 $ 5.4 $ 4.9 $ 12.5 $ 46.4 Rental expense relating to operating leases was $16.4 million , $13.2 million , and $9.5 million for the fiscal years ended June 30, 2018 , 2017 , and 2016 , respectively. Sublease rental income was not material for any period presented. |
Segment Information
Segment Information | 12 Months Ended |
Jun. 30, 2018 | |
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 Technologies, Biologics and Specialty Drug Delivery, Oral Drug Delivery, and Clinical Supply Services. The Company evaluates the performance of its segments based on 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 continuing operations, which the Company defines as consolidated earnings from continuing 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 continuing 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 continuing operations in order to provide supplemental information that the Company considers relevant for the readers of the consolidated financial statements, and such information is not meant to replace or supersede U.S. GAAP measures. The Company’s presentation of Segment EBITDA and EBITDA from continuing operations may not be comparable to similarly titled measures used by other companies. The most directly comparable U.S. GAAP measure to EBITDA from continuing operations is earnings/(loss) from continuing operations. Included in this Note is a reconciliation of earnings/(loss) from continuing operations to EBITDA from continuing 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, 2018 , June 30, 2017 , and June 30, 2016 (restated in accordance with ASC 280): (Dollars in millions) Fiscal Year Ended 2018 2017 2016 Softgel Technologies Net revenue $ 917.3 $ 855.3 $ 775.0 Segment EBITDA $ 196.4 $ 190.5 $ 163.8 Biologics and Specialty Drug Delivery Net revenue 601.9 350.8 314.9 Segment EBITDA 146.8 63.4 61.1 Oral Drug Delivery Net revenue 573.9 561.6 493.6 Segment EBITDA 172.9 179.0 154.1 Clinical Supply Services Net revenue 430.4 348.8 307.5 Segment EBITDA 76.2 54.9 53.2 Inter-segment revenue elimination (60.1 ) (41.1 ) (42.9 ) Unallocated costs (1) (138.8 ) (115.6 ) (57.9 ) Combined Total Net revenue $ 2,463.4 $ 2,075.4 $ 1,848.1 EBITDA from continuing operations $ 453.5 $ 372.2 $ 374.3 (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: (Dollars in millions) Fiscal Year Ended 2018 2017 2016 Impairment charges and gain/(loss) on sale of assets $ (8.7 ) $ (9.8 ) $ (2.7 ) Equity compensation (27.2 ) (20.9 ) (10.8 ) Restructuring and other special items (a) (54.4 ) (33.5 ) (27.2 ) Non-controlling interest — — 0.3 Other income/(expense), net (b) (7.7 ) (8.5 ) 15.6 Non-allocated corporate costs, net (40.8 ) (42.9 ) (33.1 ) Total unallocated costs $ (138.8 ) $ (115.6 ) $ (57.9 ) (a) Restructuring and other special items include transaction and integration costs associated with the acquisition of Catalent Indiana and Accucaps. (b) Refer to Note 13 , Other (income)/expense, net, for details of financing charges and foreign currency translation adjustments recorded within other income/(expense), net Provided below is a reconciliation of earnings/(loss) from continuing operations to EBITDA from continuing operations: (Dollars in millions) Fiscal Year Ended 2018 2017 2016 Earnings/(loss) from continuing operations $ 83.6 $ 109.8 $ 111.2 Depreciation and amortization 190.1 146.5 140.6 Interest expense, net 111.4 90.1 88.5 Income tax (benefit)/expense 68.4 25.8 33.7 Non-controlling interest — — 0.3 EBITDA from continuing operations $ 453.5 $ 372.2 $ 374.3 The following table includes total assets for each segment, as well as reconciling items necessary to total the amounts reported in the Consolidated Balance Sheet: Total Assets (Dollars in millions) June 30, June 30, Softgel Technologies $ 1,402.0 $ 1,631.8 Biologics and Specialty Drug Delivery 1,739.7 414.9 Oral Drug Delivery 1,074.2 1,226.1 Clinical Supply Services 613.0 596.2 Corporate and eliminations (297.8 ) (414.7 ) Total assets $ 4,531.1 $ 3,454.3 The following tables include depreciation and amortization expense and capital expenditures for the fiscal years ended June 30, 2018 , June 30, 2017 and June 30, 2016 for each segment, as well as reconciling items necessary to total the amounts reported in the Consolidated Statement of Operations: Depreciation and Amortization Expense (Dollars in millions) Fiscal Year Ended 2018 2017 2016 Softgel Technologies $ 43.9 $ 38.4 $ 36.7 Biologics and Specialty Drug Delivery 54.7 25.2 24.2 Oral Drug Delivery 54.4 50.1 48.7 Clinical Supply Services 19.5 18.7 21.1 Corporate 17.6 14.1 9.9 Total depreciation and amortization expense $ 190.1 $ 146.5 $ 140.6 Capital Expenditures (Dollars in millions) Fiscal Year Ended 2018 2017 2016 Softgel Technologies $ 41.3 $ 27.6 $ 20.6 Biologics and Specialty Drug Delivery 55.2 40.8 52.8 Oral Drug Delivery 40.2 42.7 39.6 Clinical Supply Services 11.5 7.2 5.1 Corporate 28.3 21.5 21.5 Total capital expenditures $ 176.5 $ 139.8 $ 139.6 The following table presents revenue and long-lived assets by geographic area: Net Revenue Long-Lived Assets (1) (Dollars in millions) Fiscal Year Ended 2018 2017 2016 June 30, June 30, United States $ 1,219.8 $ 996.4 $ 858.6 $ 849.9 $ 588.0 Europe 897.8 797.4 733.2 304.9 281.6 International Other 415.3 345.0 313.5 115.8 126.3 Eliminations (69.5 ) (63.4 ) (57.2 ) — — Total $ 2,463.4 $ 2,075.4 $ 1,848.1 $ 1,270.6 $ 995.9 (1) Long-lived assets include property and equipment, net of accumulated depreciation. |
Supplemental Balance Sheet Info
Supplemental Balance Sheet Information | 12 Months Ended |
Jun. 30, 2018 | |
Balance Sheet Related Disclosures [Abstract] | |
Supplemental Balance Sheet Information | SUPPLEMENTAL BALANCE SHEET INFORMATION Supplemental balance sheet information at June 30, 2018 and June 30, 2017 is detailed in the following tables. Inventories Work-in-process and finished goods inventories include raw materials, labor, and overhead. Total inventories consist of the following: (Dollars in millions) June 30, June 30, Raw materials and supplies $ 137.1 $ 107.5 Work-in-process 42.3 42.8 Finished goods 48.3 56.7 Total inventory, gross 227.7 207.0 Inventory cost adjustment (18.6 ) (22.1 ) Inventories $ 209.1 $ 184.9 Prepaid expenses and other Prepaid expenses and other current assets consist of the following: (Dollars in millions) June 30, June 30, Prepaid expenses $ 19.2 $ 12.3 Spare parts supplies 11.1 11.8 Prepaid income tax 7.2 11.5 Non-U.S. value-added tax 12.5 16.0 Available for sale investment — 18.6 Other current assets 15.2 27.6 Prepaid expenses and other $ 65.2 $ 97.8 Property, plant, and equipment, net Property, plant, and equipment, net consist of the following: (Dollars in millions) June 30, June 30, Land, buildings, and improvements $ 928.1 $ 735.2 Machinery, equipment, and capitalized software 988.1 825.0 Furniture and fixtures 14.9 10.1 Construction in progress 166.8 137.4 Property and equipment, at cost 2,097.9 1,707.7 Accumulated depreciation (827.3 ) (711.8 ) Property, plant, and equipment, net $ 1,270.6 $ 995.9 Other assets Other assets consist of the following: (Dollars in millions) June 30, June 30, Deferred compensation investments 20.1 15.4 Pension asset 18.0 2.7 Deferred long-term debt financing costs 1.1 1.2 Other 6.0 8.2 Total other assets $ 45.2 $ 27.5 Other accrued liabilities Other accrued liabilities consist of the following: (Dollars in millions) June 30, June 30, Accrued employee-related expenses $ 104.3 $ 96.4 Restructuring accrual 9.4 5.9 Accrued interest 16.5 0.9 Deferred revenue and fees 100.9 84.9 Accrued income tax 25.9 24.7 Other accrued liabilities and expenses 55.9 68.4 Other accrued liabilities $ 312.9 $ 281.2 Allowance for doubtful accounts Trade receivables allowance for doubtful accounts activity is as follows: (Dollars in millions) June 30, June 30, June 30, Trade receivables allowance for doubtful accounts Beginning balance $ 4.0 $ 3.9 $ 6.6 Charged to cost and expenses (recoveries) 1.7 1.0 (0.5 ) Deductions 0.3 (0.9 ) (1.8 ) Impact of foreign exchange — — (0.4 ) Closing balance $ 6.0 $ 4.0 $ 3.9 |
Quarterly Financial Data - Unau
Quarterly Financial Data - Unaudited | 12 Months Ended |
Jun. 30, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information | QUARTERLY FINANCIAL DATA (UNAUDITED) The following table summarizes the Company’s unaudited quarterly results of operation. (Dollars in millions, except per share data) Fiscal Year 2018, By Quarters First Second Third Fourth Net revenue $ 543.9 $ 606.3 $ 627.9 $ 685.3 Gross margin 140.1 187.4 191.7 233.4 Net earnings $ 3.8 $ (21.9 ) $ 19.0 $ 82.7 Earnings per share: Basic Net earnings $ 0.03 $ (0.16 ) $ 0.14 $ 0.62 Diluted Net earnings $ 0.03 $ (0.16 ) $ 0.14 $ 0.61 (Dollars in millions, except per share data) Fiscal Year 2017, By Quarters First Second Third Fourth Net revenue $ 442.2 $ 483.7 $ 532.6 $ 616.9 Gross margin 124.1 147.9 167.4 215.2 Net earnings $ 4.6 $ 17.4 $ 26.0 $ 61.8 Earnings per share: Basic Net earnings $ 0.04 $ 0.14 $ 0.21 $ 0.49 Diluted Net earnings $ 0.04 $ 0.14 $ 0.21 $ 0.49 |
Subsequent Events (Notes)
Subsequent Events (Notes) | 12 Months Ended |
Jun. 30, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | SUBSEQUENT EVENTS Juniper Pharmaceuticals Acquisition On July 2, 2018, Operating Company; Catalent Boston, Inc., a wholly owned subsidiary of Operating Company ("Merger Sub"); and Juniper Pharmaceuticals, Inc. , a Delaware corporation ("Juniper"), entered into an Agreement and Plan of Merger (the “Merger Agreement”) for the acquisition of Juniper by Operating Company through a tender offer and subsequent merger. Juniper has expertise in formulation development, and supply, and will augment the Company's current portfolio of solid-state screening, pre-formulation, formulation, analytical, and bioavailability enhancement solutions, including development of spray-dried dispersions, with integrated development, analytical, and clinical manufacturing. On August 14, 2018, Operating Company closed the acquisition of Juniper pursuant to the terms of the Merger Agreement, and Juniper became a wholly owned subsidiary of Operating Company. Under the terms of the Merger Agreement, all outstanding options to purchase Juniper shares were canceled in exchange for cash equal to the product of the number of Juniper shares subject to the option and the difference between the price per share paid in the tender offer and the exercise price. Similarly, all outstanding restricted stock units in respect of Juniper shares were canceled in exchange for cash equal to the product of the number of units and the price per share paid in the tender offer. The aggregate purchase price paid in the tender offer and subsequent merger and to cancel the outstanding equity awards was approximately $140 million , which was funded by cash on hand. The Company is currently in the process of determining the allocation of the purchase price. Equity offering and use of proceeds On July 27, 2018, the Company completed an underwritten public equity offering (the "2018 Offering") of 11.4 million shares, including the underwriters' over-allotment, of its common stock, par value $0.01 , at a price to the public of $40.24 per share. The Company used the net proceeds from the 2018 Offering, $445.2 million after deducting the underwriting discount and offering expenses, to repay a corresponding portion of the outstanding borrowings under its U.S. dollar-denominated term loans. |
Basis of Presentation and Sum27
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Segment Reporting, Policy [Policy Text Block] | Reportable Segments In fiscal 2018, 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 created two new operating segments from the former Drug Delivery Solutions segment: • Biologics and Specialty Drug Delivery, which encompasses biologic cell-line development and manufacturing, development and manufacturing services for blow-fill-seal unit doses, prefilled syringes, vials, and cartridges; analytical development and testing services for large molecules; and development and manufacturing for inhaled products for delivery via metered dose inhalers, dry powder inhalers, and intra-nasal sprays; and • Oral Drug Delivery, which encompasses comprehensive formulation, development, manufacturing, and analytical development capabilities using advanced processing technologies such as bioavailability enhancement, controlled release, particle size engineering, and taste-masking for solid oral-dose forms. Each of the two new segments 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 ASC 280 Segment Reporting . The Company's offerings and services are summarized below by reporting segment. |
Basis of Presentation | Basis of Presentation These financial statements include all of the Company’s subsidiaries, including those operating outside the United States ("U.S.") and are prepared in accordance with U.S. GAAP. All significant transactions among the Company’s businesses have been eliminated. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect amounts reported in the financial statements and accompanying notes. Such estimates include, but are not limited to, allowance for doubtful accounts, inventory and long-lived asset valuation, goodwill and other intangible asset valuation and impairment, equity-based compensation, income taxes, and pension plan asset and liability valuation. Actual amounts may differ from these estimated amounts. |
Translation and Transaction of Foreign Currencies | Foreign Currency Translation The financial statements of the Company’s operations outside the U.S. are generally measured using the local currency as the functional currency. Adjustments to translate the assets and liabilities of the foreign operations into U.S. dollars are accumulated as a component of other comprehensive income/(loss) utilizing period-end exchange rates. In June 2018, as a result of the three-year cumulative consumer price index exceeding 100%, Argentina was classified as having a highly inflationary economy. The Company is presently evaluating the impact of accounting for its Argentine operations as highly inflationary beginning on July 1, 2018. The currency fluctuation related to certain long-term inter-company loans deemed to not be repayable in the foreseeable future have been recorded within the cumulative translation adjustment, a component of other comprehensive income/(loss). In addition, the currency fluctuation associated with the portion of the Company’s euro-denominated debt designated as a net investment hedge is included as a component of other comprehensive income/(loss). 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 that are repayable in the foreseeable future. |
Revenue Recognition | Revenue Recognition In accordance with Accounting Standards Codification ( "ASC") 605 Revenue Recognition, the Company recognizes revenue when persuasive evidence of an arrangement exists, product delivery has occurred or the services have been rendered, the price is fixed or determinable and collectability is reasonably assured. In cases where the Company has multiple contracts with the same customer, the Company evaluates those contracts to assess if the contracts are linked or are separate arrangements. Factors the Company considers include the timing of negotiation, interdependency with other contracts or elements and payment terms. The Company and its customers generally view each contract as a separate arrangement. Manufacturing and packaging service revenue is recognized upon delivery of the product in accordance with the terms of the contract, which specify when transfer of title and risk of loss occurs. Some of the Company’s manufacturing contracts with its customers have annual minimum purchase requirements. At the end of the contract year, revenue is recognized for the unfilled purchase obligation in accordance with the contract terms. Development service contracts generally take the form of a fee-for-service arrangement. After the Company has evidence of an arrangement, the price is determinable and there is a reasonable expectation regarding payment, the Company recognizes revenue at the point in time the service obligation is completed and accepted by the customer. Examples of output measures include a formulation report, analytical and stability testing, clinical batch production or packaging and the storage and distribution of a customer’s clinical trial material. Arrangements containing multiple elements, including service arrangements, are accounted for in accordance with the provisions of ASC 605-25 Revenue Recognition—Multiple-Element Arrangements . The Company determines the separate units of account in accordance with ASC 605-25. If the deliverable meets the criteria of a separate unit of accounting, the arrangement consideration is allocated to each element based upon its relative selling price. In determining the best evidence of selling price of a unit of account the Company utilizes vendor-specific objective evidence ("VSOE"), which is the price the Company charges when the deliverable is sold separately. When VSOE is not available, management uses relevant third-party evidence ("TPE") of selling price, if available. When neither VSOE nor TPE of selling price exists, management uses its best estimate of selling price. |
Cash and Cash Equivalents | Cash and Cash Equivalents All liquid investments purchased with original maturities of three months or less are considered to be cash and equivalents. The carrying value of these cash equivalents approximates fair value. |
Receivables and Allowance dor Doubtful Accounts | Receivables and Allowance for Doubtful Accounts Trade receivables are primarily comprised of amounts owed to the Company through its operating activities and are presented net of an allowance for doubtful accounts. The Company monitors past due accounts on an ongoing basis and establishes appropriate reserves to cover probable losses. An account is considered past due on the first day after its due date. The Company makes judgments as to its ability to collect outstanding receivables and provides allowances when it concludes that all or a portion of the receivable will not be collected. The Company determines its allowance by considering a number of factors, including the length of time accounts receivable are past due, the Company’s previous loss history, the specific customer’s ability to pay its obligation to the Company, and the condition of the general economy and the customer’s industry. |
Concentrations of Credit Risk and Major Customers | Concentrations of Credit Risk and Major Customers Concentration of credit risk, with respect to accounts receivable, is limited due to the large number of customers and their dispersion across different geographic areas. The customers are primarily concentrated in the pharmaceutical and healthcare industry. The Company normally does not require collateral or any other security to support credit sales. The Company performs ongoing credit evaluations of its customers’ financial conditions and maintains reserves for credit losses. Such losses historically have been within the Company’s expectations. No single customer exceeded 10% of revenue during the fiscal years ended 2018 , 2017 , and 2016 or 10% of accounts receivable as of the years ended 2018 and 2017 . |
Inventories | Inventories Inventory is stated at the lower of cost or net realizable value, using the first-in, first-out ("FIFO") method. The Company provides for cost adjustments for excess, obsolete, or slow-moving inventory based on changes in customer demand, technology developments or other economic factors. Inventory consists of costs associated with raw material, labor, and overhead. |
Goodwill | Goodwill The Company accounts for purchased goodwill and intangible assets with indefinite lives in accordance with ASC 350 Goodwill, Intangible and Other Assets . Under ASC 350, goodwill and intangible assets with indefinite lives are not amortized, but instead are tested for impairment at least annually. The Company’s annual goodwill impairment test was conducted as of April 1, 2018 . The Company assesses goodwill for possible impairment by comparing the carrying value of its reporting units to their fair values. The Company determines the fair value of its reporting units utilizing estimated future discounted cash flows and incorporates assumptions that it believes marketplace participants would utilize. In addition, the Company uses comparative market information and other factors to corroborate the discounted cash flow results. |
Property and Equipment | Property and equipment are stated at cost. Depreciation expense is computed using the straight-line method over the estimated useful lives of the assets, including leasehold improvements and capital lease assets that are amortized over the shorter of their useful lives or the terms of the respective leases. The Company generally uses the following range of useful lives for its property and equipment categories: buildings and improvements— 5 to 50 years; machinery and equipment— 3 to 10 years; and furniture and fixtures— 3 to 7 years. The Company also capitalizes certain computer software and development costs in property, plant, and equipment, net, when incurred in connection with developing or obtaining computer software for internal use. Capitalized software costs are amortized over the estimated useful lives of the software, which generally range from 3 to 5 years. Depreciation expense was $127.5 million for the fiscal year ended June 30, 2018 , $102.2 million for the fiscal year ended June 30, 2017 , and $94.2 million for the fiscal year ended June 30, 2016 . Depreciation expense includes amortization of assets related to capital leases. The Company charges repairs and maintenance costs to expense as incurred. The amount of capitalized interest was immaterial for all periods presented. |
Intangible Assets, Finite-Lived | Intangible assets with finite lives, primarily including customer relationships, patents, and trademarks are amortized over their useful lives. The Company evaluates the recoverability of its other long-lived assets, including amortizing intangible assets, if circumstances indicate impairment may have occurred pursuant to ASC 360 Property, Plant and Equipment . This analysis is performed by comparing the respective carrying values of the assets to the current and expected future cash flows, on an un-discounted basis, to be generated from such assets. If such analysis indicates that the carrying value of these assets is not recoverable, the carrying value of such assets is reduced to fair value through a charge to the consolidated statements of operations. Fair value is determined based on assumptions the Company believes marketplace participants would utilize and comparable marketplace information in similar arm’s length transactions. The Company recorded impairment charges related to definite-lived intangible assets and property, plant, and equipment, net of gains on sale, of $8.7 million , $9.8 million , and $2.7 million , for the fiscal years ended June 30, 2018 , June 30, 2017 , and June 30, 2016 , respectively. |
Post-Retirement and Pension Plans | Post-Retirement and Pension Plans The Company sponsors various retirement and pension plans, including defined benefit retirement plans and defined contribution retirement plans. The measurement of the related benefit obligations and the net periodic benefit costs recorded each year are based upon actuarial computations, which require management’s judgment as to certain assumptions. These assumptions include the discount rates used in computing the present value of the benefit obligations and the net periodic benefit costs, the expected future rate of salary increases (for pay-related plans) and the expected long-term rate of return on plan assets (for funded plans). The Company uses the corridor approach to amortize actuarial gains and losses. Effective June 30, 2016, the approach used to estimate the service and interest components of net periodic benefit cost for benefit plans was changed to provide a more precise measurement of service and interest costs. Historically, the Company estimated these service and interest components utilizing a single weighted-average discount rate derived from the yield curve used to measure the benefit obligation at the beginning of the period. Going forward, the Company has elected to utilize an approach that discounts the individual expected cash flows using the applicable spot rates derived from the yield curve over the projected cash flow period. The Company has accounted for this change as a change in accounting estimate that is inseparable from a change in accounting principle and accordingly has accounted for it prospectively. The expected long-term rate of return on plan assets is based on the target asset allocation and the average expected rate of growth for the asset classes invested. The average expected rate of growth is derived from a combination of historic returns, current market indicators, and the expected risk premium for each asset class. The Company uses a measurement date of June 30 for all its retirement and postretirement benefit plans. |
Derivative Instruments and Hedging Activities | Derivatives Instruments and Hedging Activities The Company is exposed to certain risks arising from both its business operations and economic conditions. The Company principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Company manages economic risks, including interest-rate, liquidity, and credit risk primarily by managing the amount, sources and duration of its debt funding and the use of derivative financial instruments. Specifically, the Company enters into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates. The Company’s derivative financial instruments are used to manage differences in the amount, timing, and duration of the Company’s known or expected cash receipts and its known or expected cash payments principally related to the Company’s borrowings. The Company does not net any of its derivative positions under master netting arrangements. Specifically, the Company is exposed to fluctuations in the euro-U.S. dollar exchange rate on its investments in foreign operations in Europe. While the Company does not actively hedge against changes in foreign currency, it has mitigated the exposure of investments in its European operations through a net-investment hedge by denominating a portion of its debt in euros. |
Fair Value Disclosures | Fair Value The Company is required to measure certain assets and liabilities at fair value, either upon initial measurement or for subsequent accounting or reporting. The Company uses fair value extensively in the initial measurement of net assets acquired in a business combination and when accounting for and reporting on certain financial instruments. The Company estimates fair value using an exit price approach, which requires, among other things, that it determine the price that would be received to sell an asset or paid to transfer a liability in an orderly market. The determination of an exit price is considered from the perspective of market participants, considering the highest and best use of assets and, for liabilities, assuming the risk of non-performance will be the same before and after the transfer. A single estimate of fair value results from a complex series of judgments about future events and uncertainties and relies heavily on estimates and assumptions. When estimating fair value, depending on the nature and complexity of the assets or liability, the Company may use one or all of the following approaches: • Market approach, which is based on market prices and other information from market transactions involving identical or comparable assets or liabilities. • Cost approach, which is based on the cost to acquire or construct comparable assets less an allowance for functional and/or economic obsolescence. • Income approach, which is based on the present value of the future stream of net cash flows. These fair value methodologies depend on the following types of inputs: • Quoted prices for identical assets or liabilities in active markets (called Level 1 inputs). • Quoted prices for similar assets or liabilities in active markets or quoted prices for identical or similar assets or liabilities in markets that are directly or indirectly observable (called Level 2 inputs). • Unobservable inputs that reflect estimates and assumptions (called Level 3 inputs). Certain investments that are measured at fair value using the net asset value per share (NAV) (or its equivalent) practical expedient have not been classified in the fair value hierarchy. |
Self Insurance | Self-Insurance The Company is partially self-insured for certain employee health benefits and partially self-insured for property losses and casualty claims. The Company accrues for losses based upon experience and actuarial assumptions, including provisions for losses incurred but not reported. |
Shipping and Handling | Shipping and Handling The Company includes shipping and handling costs in cost of sales in the Consolidated Statements of Operations. Shipping and handling revenue received was immaterial for all periods presented and is presented within net revenues. |
Accumulated Other Comprehensive Income/(Loss) | Accumulated Other Comprehensive Income/(Loss) Accumulated other comprehensive income/(loss), which is reported in the accompanying consolidated statements of changes in shareholders’ equity, consists of net earnings/(loss), foreign currency translation, deferred compensation, and minimum pension liability changes. |
Research and Development Costs | Research and Development Costs The Company expenses research and development costs as incurred. It records costs incurred in connection with the development of new offerings and manufacturing process improvements within selling, general, and administrative expenses. Such research and development costs amounted to $6.3 million , $7.0 million , and $7.6 million for the fiscal years ended June 30, 2018 , June 30, 2017 , and June 30, 2016 , respectively. The Company records within cost of sales the costs it incurred in connection with the research and development services that it provided to customers and services it performed for customers in support of the commercial manufacturing process. This second type of research and development costs amounted to $46.2 million , $45.8 million , and $47.4 million for the fiscal years ended June 30, 2018 , June 30, 2017 , and June 30, 2016 , respectively. |
Earnings Per Share | Earnings / (Loss) Per Share The Company reports net earnings (loss) per share in accordance with ASC 260 Earnings per Share . Under ASC 260, basic earnings per share, which excludes dilution, is computed by dividing net earnings or loss available to common stockholders by the weighted average number of common shares outstanding for the period. Diluted earnings per share reflects the potential dilution due to securities that could be exercised or converted into common shares and is computed by dividing net earnings or loss available to common stockholders by the weighted average of common shares outstanding plus the dilutive potential common shares. Diluted earnings per share include as appropriate in-the-money stock options and outstanding restricted stock units and restricted stock using the treasury stock method. During a loss period, the assumed exercise of in-the-money stock options has an anti-dilutive effect; therefore, these instruments are excluded from the computation of diluted earnings per share in a loss period. |
Income Taxes | Income Taxes In accordance with ASC 740 Income Taxes, the Company accounts for income taxes using the asset and liability method. The asset and liability method requires recognition of deferred tax assets and liabilities for expected future tax consequences of temporary differences that currently exist between tax bases and financial reporting bases of the Company’s assets and liabilities. The Company measures deferred tax assets and liabilities using enacted tax rates in the respective jurisdictions in which it operates. In assessing the ability to realize deferred tax assets, the Company considers whether it is more likely than not that the Company will be able to realize some or all of the deferred tax assets. The calculation of the Company’s tax liabilities involves dealing with uncertainties in the application of complex tax regulations in each of its tax jurisdictions. The number of years with open tax audits varies by tax jurisdiction. A number of years may lapse before a particular matter is audited and finally resolved. The Company applies ASC 740 to determine the accounting for uncertain tax positions. This standard clarifies the accounting for income taxes, by prescribing a minimum recognition threshold a tax position is required to meet before the Company may recognize the position in its financial statements. The standard also provides guidance on derecognition, measurement, classification, interest and penalties, accounting in interim periods, disclosure, and transition. |
Share-based Compensation, Option and Incentive Plans | Equity-Based Compensation The Company accounts for its equity-based compensation in accordance with ASC 718 Compensation—Stock Compensation. Under ASC 718, companies recognize compensation expense using a fair-value-based method for costs related to share-based payments, including stock options and restricted stock units. The expense is measured based on the grant date fair value of the awards, and the expense is recorded over the applicable requisite service period. Forfeitures are recognized as and when they occur. In the absence of an observable market price for a share-based award, the fair value is based upon a valuation methodology that takes into consideration various factors, including the exercise price of the award, the expected term of the award, the current price of the underlying shares, the expected volatility of the underlying share price based on peer companies, the expected dividends on the underlying shares and the risk-free interest rate. The terms of the Company’s equity-based compensation plans permit an employee holding vested stock options to elect to have the Company withhold a portion of the shares otherwise issuable upon the employee’s exercise of the option, a so-called "net settlement transaction," as a means of paying the exercise price, meeting tax withholding requirements, or both. |
Marketable Securities [Table Text Block] | Marketable Securities Marketable securities consist of investments that have a readily determinable fair value based on quoted market price of the investment, which is considered a Level 1 fair value measurement. Under ASC 320, Investments—Debt and Equity Securities , these investments are classified as available-for-sale and are reported at fair value in other current assets on the Company's consolidated balance sheet. Unrealized holding gains and losses are reported within accumulated other comprehensive income. Under the Company's accounting policy, a decline in the fair value of marketable securities is deemed to be "other than temporary" and such marketable securities are generally considered to be impaired if their fair value is less than the Company's cost basis for a period based on the particular facts and circumstances surrounding the investment. If a decline in the fair value of a marketable security below the Company's cost basis is determined to be other than temporary, such marketable security is written down to its estimated fair value as a new cost basis and the amount of the write-down is included in earnings as an impairment charge. |
Recent Financial Accounting Standards | Recent Financial Accounting Standards Recently Adopted Accounting Standards In July 2015, the Financial Accounting Standards Board (the "FASB") issued Accounting Standards Update ("ASU") 2015-11, Simplifying the Measurement of Inventory , which requires an entity to measure inventory at lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. The ASU is effective for public reporting entities in fiscal years beginning after December 15, 2016. The Company adopted this ASU prospectively in fiscal 2018. The adoption of this ASU did not have any material impact on the Company's consolidated financial statements. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments , which provides clarification on the presentation and classification of certain cash receipts and cash payments in the statement of cash flows. The guidance will be effective for public reporting entities in fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted in any interim or annual period. The Company early adopted this ASU retrospectively in fiscal 2018. The adoption of this ASU did not have any material impact on the Company's consolidated financial statements. New Accounting Standards Not Adopted as of June 30, 2018 In February 2018, the FASB issued ASU 2018-02, Income Statement—Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income , which permits an entity to reclassify to retained earnings the stranded tax effects caused by the Tax Cuts and Jobs Act of 2017 on items within accumulated other comprehensive income/(loss). The ASU will be effective for fiscal years beginning after December 15, 2018 and interim periods within those years. Early adoption is permitted. The Company is currently evaluating the impact of adopting this guidance on its consolidated financial statements. In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities , which reduces the complexity of and simplifies the application of hedge accounting. The ASU will be effective for fiscal years beginning after December 15, 2018 and interim periods within those years. Early adoption is permitted. We expect the adoption of this ASU will result in the ability to defer transaction gains and losses on a larger portion of our euro-denominated debt. In May 2017, the FASB issued ASU 2017-09, Compensation—Stock Compensation (Topic 718): Scope of Modification Accounting , which clarifies when an entity will apply modification accounting for changes to stock-based compensation arrangements. Modification accounting applies if the value, vesting conditions, or classification of an award changes. The ASU will be effective for annual periods beginning after December 15, 2017 and interim periods within those annual periods. Early adoption is permitted. The adoption of this guidance is not expected to be material to the Company's consolidated financial statements. In March 2017, the FASB issued ASU 2017-07, Compensation—Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost , which requires entities to report the service cost component of the net periodic benefit cost in the same income statement line as other compensation costs arising from services rendered by employees during the reporting period. The other components of the net benefit costs will be presented in the income statement separately from the service cost and below the income from operations subtotal. The ASU will be effective for public reporting entities in fiscal years beginning after December 15, 2017 and interim periods within those years. Early adoption is permitted in the first interim period of a fiscal year. The adoption of this guidance is not expected to be material to the Company's consolidated financial statements. In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business , which provides additional guidance on the definition of a business to assist entities with evaluating whether transactions should be accounted for as acquisitions of assets or businesses. The ASU will be effective for public reporting entities in fiscal years beginning after December 15, 2017 and interim periods within those fiscal years. The Company is currently evaluating the impact of adopting this guidance on its consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) , which will supersede A SC 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 will be effective for public reporting entities in annual reporting periods beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption is permitted. The guidance is required to be adopted using the modified retrospective approach. The Company anticipates that most of its operating leases will result in the recognition of additional assets and corresponding liabilities on its consolidated balance sheets. The Company continues to evaluate the impact of adopting this guidance and its implication on its consolidated financial statements. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers, which will supersede nearly all existing revenue-recognition guidance. The new guidance’s core principle is that a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. In doing so, the new guidance creates a five-step model that requires a company to exercise judgment when considering the terms of the contracts and all relevant facts and circumstances. The five steps require a company to identify customer contracts, identify the separate performance obligations, determine the transaction price, allocate the transaction price to the separate performance obligations, and recognize revenue when each performance obligation is satisfied. The new guidance is effective for public reporting entities for annual and interim periods beginning after December 15, 2017 and allows for either full retrospective adoption, where the standard is applied to all periods presented, or modified retrospective adoption, where the standard is applied only to the most current period presented in the financial statements. While the Company continues to assess all potential impacts of the standard, it has determined that the timing of revenue recognition will accelerate for certain contractual arrangements containing minimum-volume commitments in which the price is not fixed or determinable pursuant to the terms of the agreement. Under the current standard, the related pricing adjustments are considered to be contingent, while under the new standard they will be accounted for as variable consideration and revenue will be recognized over time provided that the Company can reliably estimate the amount expected to be realized. Further, the Company has determined that, for commercial supply arrangements with a minimum-volume commitment, revenue will be recognized over time when the required quality assurance process is completed. In addition, the Company has determined that revenue from sourcing comparator drugs to clinical trial customers will be recognized on a net basis. The Company will adopt the new standard on a modified retrospective basis and the impact is expected to be a change of less than 1% of net revenue in fiscal 2019. |
Business Combinations (Tables)
Business Combinations (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Business Acquisition [Line Items] | |
Schedule of Business Acquisitions, by Acquisition [Table Text Block] | The Company accounted for the transaction using the acquisition method of accounting for business combinations, in accordance with ASC 805 Business Combinations. The total consideration was (in thousands): Cash paid at closing $ 748,002 Fair value of deferred consideration at closing 184,838 Total consideration $ 932,840 |
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 thousands): Accounts Receivable $ 37,096 Inventory 24,694 Other current assets 1,546 Property, plant, and equipment 221,139 Identifiable intangible assets 330,000 Trade and other payables 5,380 Deferred revenue 18,132 Total identifiable net assets 590,963 Goodwill 341,877 Total assets acquired and liabilities assumed $ 932,840 |
Business Acquisition, Pro Forma Information [Table Text Block] | The following table provides unaudited pro forma results for the Company, prepared in accordance with ASC 805, for the fiscal years ended June 30, 2018 and June 30, 2017, as if the Company had acquired Catalent Indiana as of July 1, 2016 (in thousands, except per share data): For the Year Ended June 30, 2018 June 30, 2017 Revenue $ 2,534.6 $ 2,257.9 Net earnings 114.2 83.6 Basic earnings per share 0.86 0.63 Diluted earnings per share 0.85 0.62 |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Carrying Amount of Goodwill | The following table summarizes the changes from June 30, 2016 , to June 30, 2017 and then to June 30, 2018 in the carrying amount of goodwill in total and by reporting segment: (Dollars in millions) Softgel Technologies Drug Delivery Solutions Biologics and Specialty Drug Delivery Oral Drug Delivery Clinical Supply Services Total Balance at June 30, 2016 $ 405.9 $ 435.1 $ — $ — $ 155.5 $ 996.5 Additions 5.8 48.3 — — — 54.1 Foreign currency translation adjustments 3.5 (6.2 ) — — (3.8 ) (6.5 ) Balance at June 30, 2017 415.2 477.2 — — 151.7 1,044.1 Additions 0.4 — 341.9 — — 342.3 Reallocation — (477.2 ) 163.8 313.4 — — Divestitures (0.9 ) — — — — (0.9 ) Foreign currency translation adjustments 0.5 — — 6.5 4.7 11.7 Balance at June 30, 2018 $ 415.2 $ — $ 505.7 $ 319.9 $ 156.4 $ 1,397.2 |
Definite Lived Long-Lived Ass30
Definite Lived Long-Lived Assets (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Finite lived intangible assets disclosure [Abstract] | |
Other Intangible Assets Subject to Amortization | The details of other intangible assets subject to amortization as of June 30, 2018 and June 30, 2017 , are as follows: (Dollars in millions) Weighted Average Life Gross Carrying Value Accumulated Amortization Net Carrying Value June 30, 2018 Amortized intangibles: Core technology 18 years $ 170.8 $ (85.3 ) $ 85.5 Customer relationships 14 years 587.0 (140.9 ) 446.1 Product relationships 12 years 210.5 (197.2 ) 13.3 Total intangible assets $ 968.3 $ (423.4 ) $ 544.9 (Dollars in millions) Weighted Average Life Gross Carrying Value Accumulated Amortization Net Carrying Value June 30, 2017 Amortized intangibles: Core technology 18 years $ 170.3 $ (74.8 ) $ 95.5 Customer relationships 14 years 253.0 (106.1 ) 146.9 Product relationships 12 years 206.9 (176.2 ) 30.7 Total intangible assets $ 630.2 $ (357.1 ) $ 273.1 |
Future Amortization Expense | Future amortization expense for the next five years is estimated to be: (Dollars in millions) 2019 2020 2021 2022 2023 Amortization expense $ 63.5 $ 49.5 $ 49.5 $ 49.5 $ 49.5 |
Restructuring and Other Costs (
Restructuring and Other Costs (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring and Other Costs | The following table summarizes the significant costs recorded within restructuring and other costs: Year ended June 30, (Dollars in millions) 2018 2017 2016 Restructuring costs: Employee-related reorganization $ 11.9 $ 7.9 $ 3.7 Asset impairments — — 0.4 Facility exit and other costs 0.4 (1.7 ) 4.9 Total restructuring costs $ 12.3 $ 6.2 $ 9.0 Other - Temporary suspension customer claims (recoveries) $ (2.1 ) $ 1.8 $ — Total restructuring and other costs $ 10.2 $ 8.0 $ 9.0 |
Long-Term Obligations and Oth32
Long-Term Obligations and Other Short-Term Borrowings (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments [Table Text Block] | Long-term obligations and short-term borrowings consist of the following at June 30, 2018 and June 30, 2017 : (Dollars in millions) Maturity as of June 30, 2018 June 30, June 30, Senior Secured Credit Facilities Term loan facility U.S. dollar-denominated May 2024 $ 1,228.4 $ 1,244.2 Term loan facility euro-denominated May 2024 358.9 352.0 Euro-denominated 4.75% Senior Notes due 2024 December 2024 438.4 424.3 U.S. dollar-denominated 4.875% Senior Notes due 2026 January 2026 443.8 — Deferred purchase consideration September 2021 188.9 — $200 million revolving credit facility May 2022 — — Capital lease obligations 2020 to 2032 60.8 53.3 Other obligations 2018 to 2019 2.1 5.9 Total 2,721.3 2,079.7 Less: Current portion of long-term obligations and other short-term borrowings 71.9 24.6 Long-term obligations, less current portion $ 2,649.4 $ 2,055.1 |
Maturities of long-term obligations | Maturities of long-term obligations, including capital leases of $60.8 million , and other short-term borrowings for future fiscal years are: (Dollars in millions) 2019 2020 2021 2022 2023 Thereafter Total Maturities of long-term and other obligations $ 71.9 67.6 69.8 71.1 24.6 2,442.6 $ 2,747.6 |
Long-Term Obligations and Oth33
Long-Term Obligations and Other Short-Term Borrowings Fair Value Measurements of Financial Instruments - Carrying Amounts and Estimated Fair Value of FInancial Instruments (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Schedule Of Carrying And Fair Value Of Financial Instruments Table [Text Block] | The carrying amounts and the estimated fair values of financial instruments as of June 30, 2018 and June 30, 2017 are as follows: June 30, 2018 June 30, 2017 (Dollars in millions) Fair Value Measurement Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value Euro-denominated 4.75% Senior Notes Level 1 $ 438.4 $ 457.6 $ 424.3 $ 454.0 U.S. Dollar-denominated 4.875% Senior Notes Level 1 443.8 428.3 — — Senior Secured Credit Facilities & Other Level 2 1,839.1 1,768.0 1,655.4 1,653.1 Total $ 2,721.3 $ 2,653.9 $ 2,079.7 $ 2,107.1 |
Earnings Per Share Calculation
Earnings Per Share Calculation (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | The reconciliations between basic and diluted earnings per share attributable to Catalent common shareholders for the fiscal years ended June 30, 2018 , 2017 and 2016 are as follows (in millions, except share and per share data): Year ended June 30, 2018 2017 2016 Net earnings $ 83.6 $ 109.8 $ 111.5 Weighted average shares outstanding 131,226,110 124,954,248 124,787,819 Weighted average dilutive securities issuable-stock plans 1,975,106 1,783,537 1,082,275 Total weighted average diluted shares outstanding 133,201,216 126,737,785 125,870,094 Earnings per share: Basic $ 0.64 $ 0.88 $ 0.89 Diluted $ 0.63 $ 0.87 $ 0.89 |
Derivative Instruments and He35
Derivative Instruments and Hedging Activities (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Net Investment Hedge in Accumulated Other Comprehensive Income (Loss) and Statement of Financial Performance [Table Text Block] | The following table includes net investment hedge activity during the fiscal years ended June 30, 2018 and June 30, 2017 : (Dollars in millions) June 30, June 30, Unrealized foreign exchange gain/(loss) within Other Comprehensive Income $ (12.5 ) $ (21.3 ) Unrealized foreign exchange gain/(loss) within the Consolidated Statement of Operations $ (11.8 ) $ (21.3 ) |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Earnings/(loss) from continuing operations before income taxes and discontinued operations | Earnings from continuing operations before income taxes are as follows for the fiscal years ended 2018 , 2017 , and 2016 : Fiscal Year Ended (Dollars in millions) 2018 2017 2016 U.S. operations $ 13.3 $ 5.0 $ 60.0 Non-U.S. operations 138.7 130.6 84.9 $ 152.0 $ 135.6 $ 144.9 |
Provision/ (benefit) for income taxes | The provision /(benefit) for income taxes consists of the following for the fiscal years ended 2018 , 2017 , and 2016 : Fiscal Year Ended (Dollars in millions) 2018 2017 2016 Current: Federal $ 14.1 $ 2.1 $ (0.6 ) State and local 0.1 (0.4 ) (0.2 ) Non-U.S. 24.9 22.7 26.3 Total current $ 39.1 $ 24.4 $ 25.5 Deferred: Federal $ 24.2 $ 1.9 $ 19.6 State and local (1.0 ) 1.4 (4.8 ) Non-U.S. 6.1 (1.9 ) (6.6 ) Total deferred $ 29.3 $ 1.4 $ 8.2 Total provision $ 68.4 $ 25.8 $ 33.7 |
Reconciliation of the provision/(benefit) based on the federal statutory income tax rate | A reconciliation of the provision/(benefit) starting from the federal statutory income tax rate to the Company’s effective income tax rate is as follows for the fiscal years ended 2018 , 2017 , and 2016 : Fiscal Year Ended (Dollars in millions) 2018 2017 2016 Provision at U.S. federal statutory tax rate $ 42.7 $ 47.4 $ 50.7 State and local income taxes 3.0 (1.5 ) (3.0 ) Foreign tax rate differential (15.4 ) (25.7 ) (21.7 ) Permanent items 2.7 2.9 (2.3 ) Unrecognized tax positions (2.4 ) (0.3 ) 5.6 Tax valuation allowance 1.7 3.1 7.2 Withholding tax and other foreign taxes 1.3 (0.2 ) 0.6 Change in tax rate (3.6 ) 2.0 (3.2 ) R&D tax credit (2.4 ) (1.2 ) (1.4 ) Impact of U.S. tax reform 42.5 — — Other (1.7 ) (0.7 ) 1.2 $ 68.4 $ 25.8 $ 33.7 |
Components of the deferred income tax assets and liabilities | Deferred income taxes arise from temporary differences between financial reporting and tax reporting bases of assets and liabilities, and operating loss and tax credit carryforwards for tax purposes. The components of the deferred income tax assets and liabilities are as follows at June 30, 2018 and 2017 : Fiscal Year Ended (Dollars in millions) 2018 2017 Deferred income tax assets: Accrued liabilities $ 19.9 $ 27.4 Equity compensation 12.9 16.4 Loss and tax credit carryforwards 118.9 141.0 Foreign currency 9.5 11.5 Pension 29.4 39.4 Property-related 9.7 9.4 Intangibles 22.5 26.3 Other 1.9 25.7 Euro-denominated debt 11.5 22.8 Total deferred income tax assets $ 236.2 $ 319.9 Valuation allowance (86.2 ) (78.8 ) Net deferred income tax assets $ 150.0 $ 241.1 Fiscal Year Ended (Dollars in millions) 2018 2017 Deferred income tax liabilities: Accrued liabilities $ (0.8 ) $ (0.8 ) Foreign currency (0.9 ) (1.3 ) Property-related (50.2 ) (57.6 ) Goodwill and other intangibles (95.6 ) (151.1 ) Other (2.1 ) (8.1 ) Total deferred income tax liabilities $ (149.6 ) $ (218.9 ) Net deferred tax asset/(liability) $ 0.4 $ 22.2 |
Deferred tax assets and liabilities | Deferred tax assets and liabilities in the preceding table are in the following captions in the balance sheet at June 30, 2018 and 2017 : Fiscal Year Ended (Dollars in millions) 2018 2017 Non-current deferred tax asset $ 32.9 $ 53.9 Non-current deferred tax liability 32.5 31.7 Net deferred tax asset/(liability) $ 0.4 $ 22.2 |
Reconciliation of Unrecognized tax benefit, excluding accrued interest | A reconciliation of unrecognized tax benefits, excluding accrued interest, for June 30, 2018 , June 30, 2017 , and June 30, 2016 is as follows: (Dollars in millions) Balance at June 30, 2015 $ 66.9 Additions based on tax positions related to the current year 6.2 Additions for tax positions of prior years — Reductions for tax positions of prior years (11.0 ) Settlements — Lapse of the applicable statute of limitations (0.6 ) Balance at June 30, 2016 $ 61.5 Additions based on tax positions related to the current year 3.3 Additions for tax positions of prior years 0.1 Reductions for tax positions of prior years (6.8 ) Settlements (5.4 ) Lapse of the applicable statute of limitations (0.2 ) Balance at June 30, 2017 $ 52.5 Additions based on tax positions related to the current year 0.1 Additions for tax positions of prior years — Reductions for tax positions of prior years (2.7 ) Settlements (47.5 ) Lapse of the applicable statute of limitations (0.2 ) Balance at June 30, 2018 $ 2.2 |
Employee Retirement Benefit P37
Employee Retirement Benefit Plans (Tables) | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Retirement Benefits [Abstract] | ||
Benefit obligation and fair value of plan assets for the defined benefit retirement and postretirement plan | The following table provides a reconciliation of the change in projected benefit obligation and fair value of plan assets for the defined benefit retirement and other retirement plans, excluding the multi-employer pension plan liability: Retirement Benefits Other Post-Retirement Benefits June 30, June 30, (Dollars in millions) 2018 2017 2018 2017 Accumulated Benefit Obligation $ 322.7 $ 322.4 $ 2.8 $ 2.8 Change in Benefit Obligation Benefit obligation at beginning of year 330.6 336.6 2.8 3.6 Company service cost 3.5 3.2 — — Interest cost 7.3 6.6 — 0.1 Employee contributions 0.3 — — — Plan amendments — — — — Curtailments — — — — Settlements (0.2 ) — — — Special termination benefits — — — — Divestitures — — — — Other — 5.5 — — Benefits paid (14.8 ) (11.0 ) (0.2 ) (0.8 ) Actual expenses — — — — Actuarial (gain)/loss (4.5 ) (6.4 ) 0.2 (0.1 ) Exchange rate gain/(loss) 8.9 (3.9 ) — — Benefit obligation at end of year 331.1 330.6 2.8 2.8 Change in Plan Assets Fair value of plan assets at beginning of year 244.6 227.6 — — Actual return on plan assets 10.6 18.4 — — Company contributions 11.2 10.6 0.2 0.7 Employee contributions 0.3 — — — Settlements (0.2 ) — — — Special company contributions to fund termination benefits — — — — Divestitures — — — — Other — 4.5 — — Benefits paid (14.8 ) (11.0 ) (0.2 ) (0.7 ) Actual expenses — — — — Exchange rate gain/(loss) 6.4 (5.5 ) — — Fair value of plan assets at end of year 258.1 244.6 — — Funded Status Funded status at end of year (73.0 ) (86.0 ) (2.8 ) (2.8 ) Employer contributions between measurement date and reporting date — — — — Net pension asset (liability) (73.0 ) (86.0 ) (2.8 ) (2.8 ) | |
Reconciliation of the net amount recognized in the Consolidated Balance Sheets | The following table provides a reconciliation of the net amount recognized in the Consolidated Balance Sheets: Retirement Benefits Other Post-Retirement Benefits June 30, June 30, (Dollars in millions) 2018 2017 2018 2017 Amounts Recognized in Statement of Financial Position Noncurrent assets $ 18.0 $ 2.7 $ — $ — Current liabilities (0.8 ) (0.8 ) (0.3 ) (0.3 ) Noncurrent liabilities (90.2 ) (87.9 ) (2.5 ) (2.5 ) Total asset/(liability) (73.0 ) (86.0 ) (2.8 ) (2.8 ) Amounts Recognized in Accumulated Other Comprehensive Income Transition (asset)/obligation — — — — Prior service cost (0.5 ) (0.5 ) — — Net (gain)/loss 53.0 58.2 (1.1 ) (1.5 ) Total accumulated other comprehensive income at the end of the year 52.5 57.7 (1.1 ) (1.5 ) Additional Information for Plan with ABO in Excess of Plan Assets Projected benefit obligation 157.8 153.1 2.8 2.8 Accumulated benefit obligation 152.1 147.5 2.8 2.8 Fair value of plan assets 66.7 64.5 — — Additional Information for Plan with PBO in Excess of Plan Assets Projected benefit obligation 157.8 153.1 2.8 2.8 Accumulated benefit obligation 152.1 147.5 2.8 2.8 Fair value of plan assets 66.7 64.5 — — Components of Net Periodic Benefit Cost Service cost 3.5 3.2 — — Interest cost 7.3 6.6 — 0.1 Expected return on plan assets (11.9 ) (11.0 ) — — Amortization of unrecognized: Transition (asset)/obligation — — — — Prior service cost — — — — Net (gain)/loss 2.4 4.4 (0.1 ) (0.2 ) Net periodic benefit cost 1.3 3.2 (0.1 ) (0.1 ) Retirement Benefits Other Post-Retirement Benefits June 30, June 30, (Dollars in millions) 2018 2017 2018 2017 Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income Net (gain)/loss arising during the year $ (3.1 ) $ (13.8 ) 0.2 (0.1 ) Prior service cost (credit) during the year — — — — Transition asset/(obligation) recognized during the year — — — — Prior service cost recognized during the year — — — — Net gain/(loss) recognized during the year (2.4 ) (4.4 ) 0.1 0.1 Exchange rate gain/(loss) recognized during the year 0.3 (0.5 ) — — Total recognized in other comprehensive income $ (5.2 ) $ (18.7 ) $ 0.3 $ — Total Recognized in Net Periodic Benefit Cost and Other Comprehensive Income Total recognized in net periodic benefit cost and other comprehensive income $ (3.9 ) $ (15.5 ) $ 0.3 $ (0.1 ) Estimated Amounts to be Amortized from Accumulated Other Comprehensive Income into Net Periodic Benefit Cost Amortization of: Transition (asset)/obligation $ — $ — $ — $ — Prior service cost/(credit) — — — — Net (gain)/loss 2.6 2.3 (0.1 ) (0.1 ) Financial Assumptions Used to Determine Benefit Obligations at the Balance Sheet Date Discount rate (%) 2.50 % 2.49 % 3.79 % 3.28 % Rate of compensation increases (%) 2.03 % 2.09 % n/a n/a Financial Assumptions Used to Determine Net Periodic Benefit Cost for Financial Year Discount rate (%) 2.49 % 2.33 % 3.28 % 2.89 % Rate of compensation increases (%) 2.04 % 2.09 % n/a n/a Expected long-term rate of return (%) 5.09 % 5.46 % n/a n/a Expected Future Contributions Fiscal year 2019 $ 9.4 $ 10.3 $ 0.3 $ 0.3 Retirement Benefits Other Post-Retirement Benefits June 30, June 30, (Dollars in millions) 2018 2017 2018 2017 Expected Future Benefit Payments Financial year 2019 $ 11.0 $ 10.8 $ 0.3 $ 0.3 2020 12.2 10.6 0.3 0.3 2021 11.8 12.3 0.3 0.3 2022 12.3 11.6 0.3 0.2 2023 13.2 12.1 0.2 0.2 2024-2028 77.7 73.7 1.0 0.9 Actual Asset Allocation (%) Equities 22.7 % 22.9 % — % — % Government bonds 28.9 % 27.0 % — % — % Corporate bonds 14.1 % 12.5 % — % — % Property 2.4 % 2.5 % — % — % Insurance contracts 9.3 % 9.2 % — % — % Other 22.6 % 25.9 % — % — % Total 100.0 % 100.0 % — % — % Actual Asset Allocation (Amount) Equities $ 58.7 $ 56.0 — — Government bonds 74.5 66.0 — — Corporate bonds 36.4 30.5 — — Property 6.2 6.2 — — Insurance contracts 24.0 22.5 — — Other 58.3 63.4 — — Total 258.1 244.6 — — Target Asset Allocation (%) Equities 22.8 % 23.8 % — % — % Government bonds 29.7 % 29.6 % — % — % Corporate bonds 13.6 % 12.1 % — % — % Property 2.9 % 2.7 % — % — % Insurance contracts 10.1 % 10 % — % — % Other 20.9 % 21.8 % — % — % Total 100.0 % 100.0 % — % — % | |
Summary of plan assets that are measured in fair value | The following table provides a summary of plan assets that are measured in fair value as of June 30, 2018 , aggregated by the level in the fair value hierarchy within which those measurements fall: (Dollars in millions) Level 1 Level 2 Level 3 Investments Measured at Net Asset Value Total Assets Equity securities $ 1.8 $ 56.9 $ — $ — $ 58.7 Debt securities 0.1 110.8 — — 110.9 Real estate 0.4 3.9 — 1.9 6.2 Other 0.7 60.7 20.9 — 82.3 Total $ 3.0 $ 232.3 $ 20.9 $ 1.9 $ 258.1 | The following table provides a summary of plan assets that are measured in fair value as of June 30, 2017 , aggregated by the level in the fair value hierarchy within which those measurements fall: (Dollars in millions) Level 1 Level 2 Level 3 Investments Measured at Net Asset Value Total Assets Equity securities $ — $ 56.0 $ — $ — $ 56.0 Debt securities — 96.5 — — 96.5 Real estate — 4.5 — 1.7 6.2 Other — 65.8 20.1 — 85.9 Total $ — $ 222.8 $ 20.1 $ 1.7 $ 244.6 |
Reconciliation of beginning and ending balances of level 3 assets | The following table provides a reconciliation of the beginning and ending balances of level 3 assets as well as the changes during the period attributable to assets held and those purchases, sales, settlements, contributions and benefits that were paid: Asset Category Allocations - June 30, 2018 Total (Level 3) Fair Value Measurement Fair Value Measurement Fair Value Measurement (Dollars in millions) Using Significant Using Significant Using Significant Unobservable Inputs Unobservable Inputs Unobservable Inputs Total (Level 3) Insurance Contracts Other Beginning Balance at June 30, 2017 $ 20.1 $ 3.0 $ 17.1 Actual return on plan assets: Relating to assets still held at the reporting date 1.5 0.1 1.4 Relating to assets sold during the period — — — Purchases, sales, settlements, contributions and benefits paid (1.8 ) (0.2 ) (1.6 ) Transfers in and/or out of Level 3 1.1 — 1.1 Ending Balance at June 30, 2018 $ 20.9 $ 2.9 $ 18.0 | |
Assumed healthcare cost trend rates | Other Post-Retirement Benefits 2018 2017 Assumed Healthcare Cost Trend Rates at the Balance Sheet Date Healthcare cost trend rate – initial (%) Pre-65 n/a n/a Post-65 (1.42 )% 8.02 % Healthcare cost trend rate – ultimate (%) Pre-65 n/a n/a Post-65 4.83 % 4.81 % Year in which ultimate rates are reached Pre-65 n/a n/a Post-65 2026 2026 Effect of 1% Change in Healthcare Cost Trend Rate Healthcare cost trend rate up 1% on APBO at balance sheet date $ 120,821 $ 122,687 on total service and interest cost 3,118 2,884 Effect of 1% Change in Healthcare Cost Trend Rate Healthcare cost trend rate down 1% on APBO at balance sheet date $ (108,873 ) $ (109,956 ) on total service and interest cost (2,804 ) (2,583 ) Expected Future Contributions Fiscal year 2019 $ 311,318 $ 277,080 |
Equity and Accumulated Other 38
Equity and Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Equity [Abstract] | |
Accumulated other comprehensive earnings/(loss) | Accumulated other comprehensive income/(loss) by component and changes for the fiscal years June 30, 2018 , June 30, 2017 , and June 30, 2016 consist of: (Dollars in millions) Foreign Currency Translation Adjustments Available for Sale Investment Adjustments Deferred Compensation Pension Liability Adjustments Other Comprehensive Income/(Loss) Balance at June 30, 2015 $ (130.0 ) $ — $ 3.8 $ (47.8 ) $ (174.0 ) Activity, net of tax (118.8 ) — (3.8 ) (9.1 ) (131.7 ) Balance at June 30, 2016 (248.8 ) — — (56.9 ) (305.7 ) Activity, net of tax (31.9 ) 10.5 — 13.0 (8.4 ) Balance at June 30, 2017 (280.7 ) 10.5 — (43.9 ) (314.1 ) Activity, net of tax (4.4 ) (11.6 ) — 4.3 (11.7 ) Balance at June 30, 2018 $ (285.1 ) $ (1.1 ) $ — $ (39.6 ) $ (325.8 ) |
Schedule of Comprehensive Income (Loss) | The components of the changes in the cumulative translation adjustment, minimum pension liability, and available for sale investment for the fiscal years ended June 30, 2018 , June 30, 2017 , and June 30, 2016 consists of: Year Ended June 30, (Dollars in millions) 2018 2017 2016 Foreign currency translation adjustments: Net investment hedge $ (12.5 ) $ (21.3 ) $ 1.8 Long term inter-company loans 9.3 (14.3 ) (65.0 ) Translation adjustments (10.1 ) (3.8 ) (54.9 ) Total foreign currency translation adjustments, pretax (13.3 ) (39.4 ) (118.1 ) Tax expense/(benefit) (8.9 ) (7.5 ) 0.7 Total foreign currency translation adjustments, net of tax $ (4.4 ) $ (31.9 ) $ (118.8 ) Net change in minimum pension liability Net gain/(loss) arising during the year $ 2.9 $ 13.9 $ (16.4 ) Net (gain)/loss recognized during the year 2.3 4.3 3.4 Foreign exchange translation and other (0.3 ) 0.5 (0.2 ) Total minimum pension liability, pretax 4.9 18.7 (13.2 ) Tax expense/(benefit) 0.6 5.7 (4.1 ) Net change in minimum pension liability, net of tax $ 4.3 $ 13.0 $ (9.1 ) Net change in available for sale investment: Net gain/(loss) arising during the year $ (16.2 ) $ 16.2 $ — Net (gain)/loss recognized during the year — — — Foreign exchange translation and other — — — Total change in available for sale investment, pretax (16.2 ) 16.2 — Tax expense/(benefit) (4.6 ) 5.7 — Net change in available for sale investment, net of tax $ (11.6 ) $ 10.5 $ — |
Equity Based Compensation Equit
Equity Based Compensation Equity Based Compensation (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | The weighted average of assumptions used in estimating the fair value of stock options granted during each year were as follows: Year Ended June 30, 2018 2017 2016 Expected volatility 24% - 27% 25% - 27% 28% - 31% Expected life (in years) 6.25 6.25 6.25 Risk-free interest rates 1.9% - 2.1% 1.2% - 1.3% 1.5% - 1.7% Dividend yield None None None |
Disclosure of Share-based Compensation Arrangements by Share-based Payment Award [Table Text Block] | The following table summarizes stock option activity and shares subject to outstanding options for the year ended June 30, 2018 : Time Performance Market Weighted Weighted Weighted Weighted Average Number Average Aggregate Number Average Aggregate Number Average Aggregate Exercise of Contractual Intrinsic of Contractual Intrinsic of Contractual Intrinsic Price shares Term Value shares Term Value shares Term Value Outstanding as of June 30, 2017 $ 20.15 1,821,616 7.13 $ 23,380,986 623,722 5.72 $ 10,587,364 340,068 3.21 $ 7,661,773 Granted $ 35.98 441,901 — — — — — — — — Exercised $ 16.79 (411,379 ) — 8,562,833 (23,427 ) — 491,537 (222,601 ) — 6,289,313 Forfeited $ 25.80 (139,302 ) — — (49,672 ) — — — — — Expired / Canceled $ — — — — — — — — — — Outstanding as of June 30, 2018 $ 23.57 1,712,836 7.01 27,418,051 550,623 4.79 13,052,439 117,467 3.35 3,154,413 Vest and expected to vest as of June 30, 2018 $ 24.35 1,712,836 7.01 27,418,051 250,365 4.54 5,768,641 117,467 3.35 3,154,413 Vested and exercisable as of June 30, 2018 $ 19.54 718,232 5.56 $ 15,040,412 236,337 4.26 $ 5,135,857 117,467 3.35 $ 3,154,413 |
Schedule of Nonvested Restricted Stock Units Activity [Table Text Block] | The following table summarizes activity in unvested time-based restricted stock units and restricted stock for the year ended June 30, 2018 : Time-Based Stock and Units Weighted Average Grant-Date Fair Value Unvested as of June 30, 2017 914,911 $ 25.34 Granted 487,080 38.64 Vested 270,895 22.65 Forfeited 126,860 30.96 Unvested as of June 30, 2018 1,004,236 $ 31.81 |
Schedule of Nonvested Performance-based Units Activity [Table Text Block] | The following table summarizes activity in unvested adjusted EPS and Other performance shares and performance share units for the year ended June 30, 2018 : EPS and Other Shares and Units Weighted Average Grant-Date Fair Value Unvested as of June 30, 2017 660,600 $ 24.81 Granted 442,565 31.92 Vested 348,574 22.26 Forfeited 176,735 29.68 Unvested as of June 30, 2018 577,856 $ 30.30 RTSR Performance Shares and Performance Share Units The fair value of the RTSR performance shares and performance share units is determined using the Monte Carlo pricing model because the number of shares to be awarded is subject to a market condition. The Monte Carlo simulation is a generally accepted statistical technique used to simulate a range of possible future outcomes. Because the valuation model considers a range of possible outcomes, compensation cost is recognized regardless of whether the market condition is actually satisfied. The assumptions used in estimating the fair value of the RTSR performance shares and performance share units granted during each year were as follows: Year Ended June 30, 2018 2017 Expected volatility 32 % - 33% 32 % - 35% Expected life (in years) 2.4 - 2.9 2.4 - 2.9 Risk-free interest rates 1.4% - 2.1% 0.85% - 1.36% Dividend yield None None The following table summarizes activity in unvested RTSR performance shares and performance share units for the year ended June 30, 2018 : RTSR Shares and Units Weighted Average Grant-Date Fair Value Unvested as of June 30, 2017 306,634 $ 30.30 Granted 344,990 33.76 Vested — — Forfeited 168,527 31.15 Unvested as of June 30, 2018 483,097 $ 32.47 |
Other Income _ Expense Other 40
Other Income / Expense Other Income / Expense (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Other Income and Expenses [Abstract] | |
Schedule of Other Nonoperating Income (Expense) | The components of Other (Income) / Expense, net for the twelve months ended June 30, 2018 , 2017 , and 2016 are as follows: Twelve Months Ended (Dollars in millions) 2018 2017 2016 Other (income)/expense, net Debt refinancing costs (1) $ 11.8 $ 4.3 $ — Foreign currency (gains) and losses (2) (4.6 ) 4.2 (12.6 ) Other (3) 0.5 — (3.0 ) Total other (income)/expense $ 7.7 $ 8.5 $ (15.6 ) (1) The expense in the twelve months ended June 30, 2018 includes $11.8 million of financing charges related to the Debt Offering and the Third Amendment and a $6.1 million charge for commitment fees paid during the first quarter of fiscal 2018 on the Bridge Facility. The twelve months ended June 30, 2017 include financing charges of $4.3 million related to the December 2016 offering of the Euro Notes and repricing and partial paydown of the Company's term loans under its senior secured credit facilities. (2) Foreign currency (gains) and losses include both cash and non-cash transactions. (3) Included within Other are realized gains associated with the sale of available-for-sale investments of $3.8 million during the fiscal year ended June 30, 2016. |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Future minimum rental payments for operating leases | The future minimum rental payments for operating leases having initial or remaining non-cancelable lease terms in excess of one year at June 30, 2018 are: (Dollars in millions) 2019 2020 2021 2022 2023 Thereafter Total Minimum rental payments $ 10.5 $ 7.0 $ 6.1 $ 5.4 $ 4.9 $ 12.5 $ 46.4 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Segment Reporting [Abstract] | |
Net Revenue and Segment EBITDA | 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, 2018 , June 30, 2017 , and June 30, 2016 (restated in accordance with ASC 280): (Dollars in millions) Fiscal Year Ended 2018 2017 2016 Softgel Technologies Net revenue $ 917.3 $ 855.3 $ 775.0 Segment EBITDA $ 196.4 $ 190.5 $ 163.8 Biologics and Specialty Drug Delivery Net revenue 601.9 350.8 314.9 Segment EBITDA 146.8 63.4 61.1 Oral Drug Delivery Net revenue 573.9 561.6 493.6 Segment EBITDA 172.9 179.0 154.1 Clinical Supply Services Net revenue 430.4 348.8 307.5 Segment EBITDA 76.2 54.9 53.2 Inter-segment revenue elimination (60.1 ) (41.1 ) (42.9 ) Unallocated costs (1) (138.8 ) (115.6 ) (57.9 ) Combined Total Net revenue $ 2,463.4 $ 2,075.4 $ 1,848.1 EBITDA from continuing operations $ 453.5 $ 372.2 $ 374.3 (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: (Dollars in millions) Fiscal Year Ended 2018 2017 2016 Impairment charges and gain/(loss) on sale of assets $ (8.7 ) $ (9.8 ) $ (2.7 ) Equity compensation (27.2 ) (20.9 ) (10.8 ) Restructuring and other special items (a) (54.4 ) (33.5 ) (27.2 ) Non-controlling interest — — 0.3 Other income/(expense), net (b) (7.7 ) (8.5 ) 15.6 Non-allocated corporate costs, net (40.8 ) (42.9 ) (33.1 ) Total unallocated costs $ (138.8 ) $ (115.6 ) $ (57.9 ) (a) Restructuring and other special items include transaction and integration costs associated with the acquisition of Catalent Indiana and Accucaps. (b) Refer to Note 13 , Other (income)/expense, net, for details of financing charges and foreign currency translation adjustments recorded within other income/(expense), net |
Reconciliation of earnings/(loss) from continuing operations to EBITDA | Provided below is a reconciliation of earnings/(loss) from continuing operations to EBITDA from continuing operations: (Dollars in millions) Fiscal Year Ended 2018 2017 2016 Earnings/(loss) from continuing operations $ 83.6 $ 109.8 $ 111.2 Depreciation and amortization 190.1 146.5 140.6 Interest expense, net 111.4 90.1 88.5 Income tax (benefit)/expense 68.4 25.8 33.7 Non-controlling interest — — 0.3 EBITDA from continuing operations $ 453.5 $ 372.2 $ 374.3 |
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 Balance Sheet: Total Assets (Dollars in millions) June 30, June 30, Softgel Technologies $ 1,402.0 $ 1,631.8 Biologics and Specialty Drug Delivery 1,739.7 414.9 Oral Drug Delivery 1,074.2 1,226.1 Clinical Supply Services 613.0 596.2 Corporate and eliminations (297.8 ) (414.7 ) Total assets $ 4,531.1 $ 3,454.3 |
Representation of depreciation and amortization expense and capital expenditure by segment | Depreciation and Amortization Expense (Dollars in millions) Fiscal Year Ended 2018 2017 2016 Softgel Technologies $ 43.9 $ 38.4 $ 36.7 Biologics and Specialty Drug Delivery 54.7 25.2 24.2 Oral Drug Delivery 54.4 50.1 48.7 Clinical Supply Services 19.5 18.7 21.1 Corporate 17.6 14.1 9.9 Total depreciation and amortization expense $ 190.1 $ 146.5 $ 140.6 |
Capital Expenditures by Segment | Capital Expenditures (Dollars in millions) Fiscal Year Ended 2018 2017 2016 Softgel Technologies $ 41.3 $ 27.6 $ 20.6 Biologics and Specialty Drug Delivery 55.2 40.8 52.8 Oral Drug Delivery 40.2 42.7 39.6 Clinical Supply Services 11.5 7.2 5.1 Corporate 28.3 21.5 21.5 Total capital expenditures $ 176.5 $ 139.8 $ 139.6 |
Presentation of revenue and long-lived assets by geographic area | The following table presents revenue and long-lived assets by geographic area: Net Revenue Long-Lived Assets (1) (Dollars in millions) Fiscal Year Ended 2018 2017 2016 June 30, June 30, United States $ 1,219.8 $ 996.4 $ 858.6 $ 849.9 $ 588.0 Europe 897.8 797.4 733.2 304.9 281.6 International Other 415.3 345.0 313.5 115.8 126.3 Eliminations (69.5 ) (63.4 ) (57.2 ) — — Total $ 2,463.4 $ 2,075.4 $ 1,848.1 $ 1,270.6 $ 995.9 (1) Long-lived assets include property and equipment, net of accumulated depreciation. |
Supplemental Balance Sheet In43
Supplemental Balance Sheet Information (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Balance Sheet Related Disclosures [Abstract] | |
Work-in-Process and Finished Goods Inventories Include Raw Materials, Labor and Overhead | Work-in-process and finished goods inventories include raw materials, labor, and overhead. Total inventories consist of the following: (Dollars in millions) June 30, June 30, Raw materials and supplies $ 137.1 $ 107.5 Work-in-process 42.3 42.8 Finished goods 48.3 56.7 Total inventory, gross 227.7 207.0 Inventory cost adjustment (18.6 ) (22.1 ) Inventories $ 209.1 $ 184.9 |
Prepaid and Other Assets | Prepaid expenses and other current assets consist of the following: (Dollars in millions) June 30, June 30, Prepaid expenses $ 19.2 $ 12.3 Spare parts supplies 11.1 11.8 Prepaid income tax 7.2 11.5 Non-U.S. value-added tax 12.5 16.0 Available for sale investment — 18.6 Other current assets 15.2 27.6 Prepaid expenses and other $ 65.2 $ 97.8 |
Property and Equipment | Property, plant, and equipment, net consist of the following: (Dollars in millions) June 30, June 30, Land, buildings, and improvements $ 928.1 $ 735.2 Machinery, equipment, and capitalized software 988.1 825.0 Furniture and fixtures 14.9 10.1 Construction in progress 166.8 137.4 Property and equipment, at cost 2,097.9 1,707.7 Accumulated depreciation (827.3 ) (711.8 ) Property, plant, and equipment, net $ 1,270.6 $ 995.9 |
Other Assets Non Current | Other assets consist of the following: (Dollars in millions) June 30, June 30, Deferred compensation investments 20.1 15.4 Pension asset 18.0 2.7 Deferred long-term debt financing costs 1.1 1.2 Other 6.0 8.2 Total other assets $ 45.2 $ 27.5 |
Other Accrued Liabilities | Other accrued liabilities consist of the following: (Dollars in millions) June 30, June 30, Accrued employee-related expenses $ 104.3 $ 96.4 Restructuring accrual 9.4 5.9 Accrued interest 16.5 0.9 Deferred revenue and fees 100.9 84.9 Accrued income tax 25.9 24.7 Other accrued liabilities and expenses 55.9 68.4 Other accrued liabilities $ 312.9 $ 281.2 |
Trade receivables allowance for doubtful accounts | Trade receivables allowance for doubtful accounts activity is as follows: (Dollars in millions) June 30, June 30, June 30, Trade receivables allowance for doubtful accounts Beginning balance $ 4.0 $ 3.9 $ 6.6 Charged to cost and expenses (recoveries) 1.7 1.0 (0.5 ) Deductions 0.3 (0.9 ) (1.8 ) Impact of foreign exchange — — (0.4 ) Closing balance $ 6.0 $ 4.0 $ 3.9 |
Quarterly Financial Data - Un44
Quarterly Financial Data - Unaudited (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information [Table Text Block] | The following table summarizes the Company’s unaudited quarterly results of operation. (Dollars in millions, except per share data) Fiscal Year 2018, By Quarters First Second Third Fourth Net revenue $ 543.9 $ 606.3 $ 627.9 $ 685.3 Gross margin 140.1 187.4 191.7 233.4 Net earnings $ 3.8 $ (21.9 ) $ 19.0 $ 82.7 Earnings per share: Basic Net earnings $ 0.03 $ (0.16 ) $ 0.14 $ 0.62 Diluted Net earnings $ 0.03 $ (0.16 ) $ 0.14 $ 0.61 (Dollars in millions, except per share data) Fiscal Year 2017, By Quarters First Second Third Fourth Net revenue $ 442.2 $ 483.7 $ 532.6 $ 616.9 Gross margin 124.1 147.9 167.4 215.2 Net earnings $ 4.6 $ 17.4 $ 26.0 $ 61.8 Earnings per share: Basic Net earnings $ 0.04 $ 0.14 $ 0.21 $ 0.49 Diluted Net earnings $ 0.04 $ 0.14 $ 0.21 $ 0.49 |
Basis of Presentation and Sum45
Basis of Presentation and Summary of Significant Accounting Policies - Additional Information (Detail) $ / shares in Units, shares in Millions, $ in Millions, Doses in Billions | Sep. 06, 2016$ / sharesshares | Jun. 06, 2016$ / sharesshares | Jun. 02, 2015$ / sharesshares | Mar. 09, 2015$ / sharesshares | Sep. 30, 2014shares | Jun. 30, 2018USD ($)Dosescustomer$ / sharesshares | Sep. 30, 2017$ / shares | Jun. 30, 2017USD ($) | Jul. 31, 2014$ / shares |
Other Assets, Noncurrent | $ | $ 45.2 | $ 27.5 | |||||||
Stock Issued During Period, Shares, New Issues | shares | 48.9 | 7.4 | |||||||
Shares Issued, Price Per Share | $ / shares | $ 39.10 | $ 39.10 | |||||||
Share Price | $ / shares | $ 20.50 | ||||||||
Sale of Stock, Number of Shares, Underwriters Option to Purchase | shares | 2.1 | 3.6 | |||||||
Number of Doses | Doses | 73 | ||||||||
Number of Customers | customer | 7,000 | ||||||||
Blackstone [Member] | |||||||||
Share Price | $ / shares | $ 23.85 | $ 24.85 | $ 29 | $ 29.50 | |||||
Sale of Stock, Number of Shares Sold by Entity | shares | 19 | 10 | 16.1 | 27.3 |
Basis of Presentation and Sum46
Basis of Presentation and Summary of Significant Accounting Policies Concentrations of Credit Risk and Major Customers (Details) - Customer Concentration Risk [Member] | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Sales [Member] | ||
Concentration Risk, Number of Customers | 0 | 0 |
Accounts Receivable [Member] | ||
Concentration Risk, Number of Customers | 0 | 0 |
Basis of Presentation and Sum47
Basis of Presentation and Summary of Significant Accounting Policies Property and Equipment and Other Definite Lived Intangible Assets (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Gain (Loss) on Sale of Assets and Asset Impairment Charges | $ (8.7) | $ (9.8) | $ (2.7) |
Depreciation expense | $ 127.5 | $ 102.2 | $ 94.2 |
Building And Improvements [Member] | Minimum [Member] | |||
Property, Plant and Equipment, Useful Life | 5 years | ||
Building And Improvements [Member] | Maximum [Member] | |||
Property, Plant and Equipment, Useful Life | 50 years | ||
Machinery and Equipment [Member] | Minimum [Member] | |||
Property, Plant and Equipment, Useful Life | 3 years | ||
Machinery and Equipment [Member] | Maximum [Member] | |||
Property, Plant and Equipment, Useful Life | 10 years | ||
Furniture and Fixtures [Member] | Minimum [Member] | |||
Property, Plant and Equipment, Useful Life | 3 years | ||
Furniture and Fixtures [Member] | Maximum [Member] | |||
Property, Plant and Equipment, Useful Life | 7 years |
Basis of Presentation and Sum48
Basis of Presentation and Summary of Significant Accounting Policies Research and Development Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Selling, General and Administrative Expenses [Member] | |||
Research and Development Expense | $ 6.3 | $ 7 | $ 7.6 |
Cost of Sales [Member] | |||
Research and Development Expense | $ 46.2 | $ 45.8 | $ 47.4 |
Business Combinations Acquisiti
Business Combinations Acquisitions (Details) - USD ($) $ in Millions | 8 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Jun. 30, 2018 | |
Business Acquisition [Line Items] | ||
Business Acquisition, Name of Acquired Entity | Cook Pharmica LLC | |
Revenues | $ 164.7 | |
Net Income (Loss) Attributable to Acquisition | $ 23.5 | |
Business Combination, Separately Recognized Transactions, Additional Disclosures, Acquisition Cost Expensed | $ 11.2 | |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 14 years |
Business Combinations Purchase
Business Combinations Purchase Agreement (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Business Acquisition [Line Items] | |||
Payment for acquisitions, net | $ (748,000) | $ (169,900) | $ 0 |
Noncash or Part Noncash Acquisition, Value of Liabilities Assumed | 184,838 | ||
Business Combination, Consideration Transferred | 932,840 | ||
Installment Payment for Acquisition, Next Twelve Months | 50,000 | ||
Installment Payment for Acquisition, Year Two | 50,000 | ||
Installment Payment for Acquisition, Year Three | 50,000 | ||
Installment Payment for Acquisition, Year Four | 50,000 | ||
Cash [Member] | |||
Business Acquisition [Line Items] | |||
Payment for acquisitions, net | $ (748,002) |
Business Combinations Net Asset
Business Combinations Net Assets Acquired (Details) $ in Thousands | 12 Months Ended |
Jun. 30, 2018USD ($) | |
Net Assets Acquired [Abstract] | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Receivables | $ 37,096 |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Inventory | 24,694 |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Other | 1,546 |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment | 221,139 |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 330,000 |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Accounts Payable | 5,380 |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Deferred Revenue | 18,132 |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets | 590,963 |
Business Acquisition, Goodwill, Expected Tax Deductible Amount | 341,877 |
Business Combination, Consideration Transferred | $ 932,840 |
Business Combinations Pro Forma
Business Combinations Pro Forma Results (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Pro Forma Results [Abstract] | ||
Business Acquisition, Pro Forma Revenue | $ 2,534.6 | $ 2,257.9 |
Business Acquisition, Pro Forma Net Income (Loss) | $ 114.2 | $ 83.6 |
Business Acquisition, Pro Forma Earnings Per Share, Basic | $ 0.86 | $ 0.63 |
Business Acquisition, Pro Forma Earnings Per Share, Diluted | $ 0.85 | $ 0.62 |
Goodwill - Carrying Amount of G
Goodwill - Carrying Amount of Goodwill (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Goodwill [Roll Forward] | ||
Beginning balance | $ 1,044.1 | $ 996.5 |
Goodwill, Acquired During Period | 342.3 | 54.1 |
Goodwill, Transfers | 0 | |
Goodwill, Written off Related to Sale of Business Unit | (0.9) | |
Foreign currency translation adjustments | 11.7 | (6.5) |
Ending balance | 1,397.2 | 1,044.1 |
Softgel Technologies [Member] | ||
Goodwill [Roll Forward] | ||
Beginning balance | 415.2 | 405.9 |
Goodwill, Acquired During Period | 0.4 | 5.8 |
Goodwill, Transfers | 0 | |
Goodwill, Written off Related to Sale of Business Unit | (0.9) | |
Foreign currency translation adjustments | 0.5 | 3.5 |
Ending balance | 415.2 | 415.2 |
Drug Delivery Solutions [Member] | ||
Goodwill [Roll Forward] | ||
Beginning balance | 477.2 | 435.1 |
Goodwill, Acquired During Period | 0 | 48.3 |
Goodwill, Transfers | (477.2) | |
Goodwill, Written off Related to Sale of Business Unit | 0 | |
Foreign currency translation adjustments | 0 | (6.2) |
Ending balance | 0 | 477.2 |
Biologics and Specialty Drug Delivery [Member] | ||
Goodwill [Roll Forward] | ||
Beginning balance | 0 | 0 |
Goodwill, Acquired During Period | 341.9 | 0 |
Goodwill, Transfers | 163.8 | |
Goodwill, Written off Related to Sale of Business Unit | 0 | |
Foreign currency translation adjustments | 0 | 0 |
Ending balance | 505.7 | 0 |
Oral Drug Delivery [Member] | ||
Goodwill [Roll Forward] | ||
Beginning balance | 0 | 0 |
Goodwill, Acquired During Period | 0 | 0 |
Goodwill, Transfers | 313.4 | |
Goodwill, Written off Related to Sale of Business Unit | 0 | |
Foreign currency translation adjustments | 6.5 | 0 |
Ending balance | 319.9 | 0 |
Clinical Supply Services [Member] | ||
Goodwill [Roll Forward] | ||
Beginning balance | 151.7 | 155.5 |
Goodwill, Acquired During Period | 0 | 0 |
Goodwill, Transfers | 0 | |
Goodwill, Written off Related to Sale of Business Unit | 0 | |
Foreign currency translation adjustments | 4.7 | (3.8) |
Ending balance | $ 156.4 | $ 151.7 |
Definite Lived Long-Lived Ass54
Definite Lived Long-Lived Assets - Other Intangible Assets Subject to Amortization (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Intangibles [Line Items] | ||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 14 years | |
Gross Carrying Value | $ 968.3 | $ 630.2 |
Accumulated Amortization | (423.4) | (357.1) |
Net Carrying Value | $ 544.9 | $ 273.1 |
Core technology [Member] | ||
Intangibles [Line Items] | ||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 18 years | 18 years |
Gross Carrying Value | $ 170.8 | $ 170.3 |
Accumulated Amortization | (85.3) | (74.8) |
Net Carrying Value | $ 85.5 | $ 95.5 |
Customer relationships [Member] | ||
Intangibles [Line Items] | ||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 14 years | 14 years |
Gross Carrying Value | $ 587 | $ 253 |
Accumulated Amortization | (140.9) | (106.1) |
Net Carrying Value | $ 446.1 | $ 146.9 |
Product relationships [Member] | ||
Intangibles [Line Items] | ||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 12 years | 12 years |
Gross Carrying Value | $ 210.5 | $ 206.9 |
Accumulated Amortization | (197.2) | (176.2) |
Net Carrying Value | $ 13.3 | $ 30.7 |
Definite Lived Long-Lived Ass55
Definite Lived Long-Lived Assets - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Finite lived intangible assets disclosure [Abstract] | |||
Amortization expense | $ 62.6 | $ 44.3 | $ 46.4 |
Impairment of Intangible Assets, Finite-lived | $ 0.6 | $ 3.4 | $ 0.7 |
Definite Lived Long-Lived Ass56
Definite Lived Long-Lived Assets - Future Amortization Expense (Detail) $ in Millions | Jun. 30, 2018USD ($) |
Finite lived intangible assets disclosure [Abstract] | |
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | $ 63.5 |
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 49.5 |
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 49.5 |
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 49.5 |
Finite-Lived Intangible Assets, Amortization Expense, Year Five | $ 49.5 |
Restructuring and Other Costs57
Restructuring and Other Costs (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Restructuring and Related Activities [Abstract] | |||
Employee-related reorganization | $ 11.9 | $ 7.9 | $ 3.7 |
Asset impairments | 0 | 0 | 0.4 |
Facility exit and other costs | 0.4 | (1.7) | 4.9 |
Restructuring Charges | 12.3 | 6.2 | 9 |
Gain (Loss) Related to Litigation Settlement | (2.1) | 1.8 | 0 |
Restructuring, Settlement and Impairment Provisions | $ 10.2 | $ 8 | $ 9 |
Long-Term Obligations and Oth58
Long-Term Obligations and Other Short-Term Borrowings - Additional Information (Detail) € in Millions, $ in Millions | 1 Months Ended | 12 Months Ended | ||||||
Oct. 23, 2017USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($) | Jun. 30, 2016USD ($) | Oct. 18, 2017USD ($) | Sep. 30, 2017USD ($) | Sep. 18, 2017USD ($) | Dec. 09, 2016EUR (€) | |
Schedule Of Debt [Line Items] | ||||||||
Debt, Current | $ 71.9 | $ 24.6 | ||||||
Long-term Debt and Capital Lease Obligations | 2,649.4 | 2,055.1 | ||||||
Repayments of Long-term Debt | $ 18.9 | 218.5 | $ 18.6 | |||||
Deferred Finance Costs, Own-share Lending Arrangement, Issuance Costs, Net, Classification | 6.9 | |||||||
Bridge Loan | $ 700 | |||||||
Prepaid Expense and Other Assets, Current | $ 65.2 | 97.8 | ||||||
Payments to Acquire Businesses, Gross | $ 950 | 950 | ||||||
Installment Payment for Acquisition, Next Twelve Months | 50 | |||||||
Installment Payment for Acquisition, Year Two | 50 | |||||||
Installment Payment for Acquisition, Year Three | 50 | |||||||
Installment Payment for Acquisition, Year Four | 50 | |||||||
Unamortized Debt Issuance Expense | 16 | 11.5 | ||||||
Amortization of Debt Issuance Costs | $ 2.5 | 2.3 | ||||||
Senior Secured Credit Facility [Member] | ||||||||
Schedule Of Debt [Line Items] | ||||||||
Pledge Percentage Of Capital Stock | 100.00% | |||||||
Pledge Percentage Of Equity Interest | 100.00% | |||||||
Maximum Percentage Of Voting Stock from non US subsidiary | 65.00% | |||||||
Term Loan Three Facility Dollar Denominated [Member] | ||||||||
Schedule Of Debt [Line Items] | ||||||||
Debt and Capital Lease Obligations | $ 1,228.4 | 1,244.2 | ||||||
Repayments of Long-term Debt | 200 | |||||||
Term Loan Three Facility Euro Denominated [Member] | ||||||||
Schedule Of Debt [Line Items] | ||||||||
Debt and Capital Lease Obligations | 358.9 | 352 | ||||||
Four Point Seven Five Percent Senior Euro Denominated Notes [Member] | ||||||||
Schedule Of Debt [Line Items] | ||||||||
Debt and Capital Lease Obligations | € | € 380 | |||||||
Stated interest rate (percent) | 4.75% | |||||||
U.S. Dollar-denominated 4.875% Senior Notes [Member] | ||||||||
Schedule Of Debt [Line Items] | ||||||||
Debt and Capital Lease Obligations | 0 | $ 450 | ||||||
Stated interest rate (percent) | 4.875% | |||||||
Senior Unsecured Term Loan Facility [Member] | ||||||||
Schedule Of Debt [Line Items] | ||||||||
Debt and Capital Lease Obligations | 188.9 | 0 | ||||||
Revolving Credit Facility - Two [Member] | ||||||||
Schedule Of Debt [Line Items] | ||||||||
Debt and Capital Lease Obligations | 0 | 0 | ||||||
Repayments of Short-term Debt | 81 | |||||||
Capital Lease Obligations [Member] | ||||||||
Schedule Of Debt [Line Items] | ||||||||
Debt and Capital Lease Obligations | 60.8 | 53.3 | ||||||
Other Obligations [Member] | ||||||||
Schedule Of Debt [Line Items] | ||||||||
Debt and Capital Lease Obligations | 2.1 | 5.9 | ||||||
Bridge Loan [Member] | ||||||||
Schedule Of Debt [Line Items] | ||||||||
Prepaid Expense and Other Assets, Current | $ 6.1 | |||||||
Financing Cost Expensed [Member] | ||||||||
Schedule Of Debt [Line Items] | ||||||||
Other Nonrecurring Expense | 0.6 | |||||||
Unamortized Debt Discount and Deferred Financing Cost [Member] | ||||||||
Schedule Of Debt [Line Items] | ||||||||
Other Nonrecurring Expense | 2 | |||||||
Accrued Liabilities [Member] | ||||||||
Schedule Of Debt [Line Items] | ||||||||
Payments to Acquire Businesses, Gross | $ 200 | 200 | ||||||
Reported Value Measurement [Member] | ||||||||
Schedule Of Debt [Line Items] | ||||||||
Debt and Capital Lease Obligations | 2,721.3 | 2,079.7 | ||||||
Level 1 [Member] | Reported Value Measurement [Member] | Four Point Seven Five Percent Senior Euro Denominated Notes [Member] | ||||||||
Schedule Of Debt [Line Items] | ||||||||
Debt and Capital Lease Obligations | 438.4 | 424.3 | ||||||
Level 1 [Member] | Reported Value Measurement [Member] | U.S. Dollar-denominated 4.875% Senior Notes [Member] | ||||||||
Schedule Of Debt [Line Items] | ||||||||
Debt and Capital Lease Obligations | $ 443.8 | $ 0 |
Long-Term Obligations and Oth59
Long-Term Obligations and Other Short-Term Borrowings- Maturities (Details) $ in Millions | Jun. 30, 2018USD ($) |
Long-term and Short-term Debt [Abstract] | |
Long-term Debt and Capital Lease Obligations, Repayments of Principal in Next Twelve Months | $ 71.9 |
Long Term Debt and Capital Lease Obligations Repayments of Principal in Year Two | 67.6 |
Long Term Debt and Capital Lease Obligations Repayments of Principal in Year Three | 69.8 |
Long Term Debt and Capital Lease Obligations Repayments of Principal in Year Four | 71.1 |
Long Term Debt and Capital Lease Obligations Repayments of Principal in Year Five | 24.6 |
Long Term Debt and Capital Lease Obligations Repayments of Principal After Year Five | 2,442.6 |
Total | $ 2,747.6 |
Long-Term Obligations and Oth60
Long-Term Obligations and Other Short-Term Borrowings Fair Value Measurements of Financial Instruments - Carrying Amounts and Estimated Fair Value of FInancial Instruments (Details) € in Millions, $ in Millions | Jun. 30, 2018USD ($) | Oct. 18, 2017USD ($) | Jun. 30, 2017USD ($) | Dec. 09, 2016EUR (€) |
Reported Value Measurement [Member] | ||||
Fair Value Measurements Of Financial Instruments [Line Items] | ||||
Debt and Capital Lease Obligations | $ 2,721.3 | $ 2,079.7 | ||
Estimate of Fair Value Measurement [Member] | ||||
Fair Value Measurements Of Financial Instruments [Line Items] | ||||
Debt Instrument, Fair Value Disclosure | 2,653.9 | 2,107.1 | ||
Four Point Seven Five Percent Senior Euro Denominated Notes [Member] | ||||
Fair Value Measurements Of Financial Instruments [Line Items] | ||||
Debt and Capital Lease Obligations | € | € 380 | |||
Four Point Seven Five Percent Senior Euro Denominated Notes [Member] | Level 1 [Member] | Reported Value Measurement [Member] | ||||
Fair Value Measurements Of Financial Instruments [Line Items] | ||||
Debt and Capital Lease Obligations | 438.4 | 424.3 | ||
Four Point Seven Five Percent Senior Euro Denominated Notes [Member] | Level 1 [Member] | Estimate of Fair Value Measurement [Member] | ||||
Fair Value Measurements Of Financial Instruments [Line Items] | ||||
Debt and Capital Lease Obligations | 457.6 | 454 | ||
U.S. Dollar-denominated 4.875% Senior Notes [Member] | ||||
Fair Value Measurements Of Financial Instruments [Line Items] | ||||
Debt and Capital Lease Obligations | $ 450 | 0 | ||
U.S. Dollar-denominated 4.875% Senior Notes [Member] | Level 1 [Member] | Reported Value Measurement [Member] | ||||
Fair Value Measurements Of Financial Instruments [Line Items] | ||||
Debt and Capital Lease Obligations | 443.8 | 0 | ||
U.S. Dollar-denominated 4.875% Senior Notes [Member] | Level 1 [Member] | Estimate of Fair Value Measurement [Member] | ||||
Fair Value Measurements Of Financial Instruments [Line Items] | ||||
Debt and Capital Lease Obligations | 428.3 | 0 | ||
Senior Secured Credit Facilities & Other [Member] | Level 2 [Member] | Reported Value Measurement [Member] | ||||
Fair Value Measurements Of Financial Instruments [Line Items] | ||||
Debt and Capital Lease Obligations | 1,839.1 | 1,655.4 | ||
Senior Secured Credit Facilities & Other [Member] | Level 2 [Member] | Estimate of Fair Value Measurement [Member] | ||||
Fair Value Measurements Of Financial Instruments [Line Items] | ||||
Debt and Capital Lease Obligations | $ 1,768 | $ 1,653.1 |
Long-Term Obligations and Oth61
Long-Term Obligations and Other Short-Term Borrowings Interest Rate (Details) - London Interbank Offered Rate (LIBOR) [Member] | 12 Months Ended |
Jun. 30, 2018 | |
Term Loan Three Facility Dollar Denominated [Member] | |
Debt Instrument [Line Items] | |
Debt Instrument, Basis Spread on Variable Rate | 2.25% |
Debt Instrument, Interest Rate, Increase (Decrease) | (0.50%) |
Term Loan Three Facility Dollar Denominated [Member] | Minimum [Member] | |
Debt Instrument [Line Items] | |
Debt Instrument, Basis Spread on Variable Rate | 1.00% |
Term Loan Three Facility Euro Denominated [Member] | |
Debt Instrument [Line Items] | |
Debt Instrument, Basis Spread on Variable Rate | 1.75% |
Debt Instrument, Interest Rate, Increase (Decrease) | (0.75%) |
Term Loan Three Facility Euro Denominated [Member] | Minimum [Member] | |
Debt Instrument [Line Items] | |
Debt Instrument, Basis Spread on Variable Rate | 1.00% |
Revolving Credit Facility - Two [Member] | |
Debt Instrument [Line Items] | |
Debt Instrument, Basis Spread on Variable Rate | 2.25% |
Debt Instrument, Interest Rate, Increase (Decrease) | (1.25%) |
Revolving Credit Facility - Two [Member] | Minimum [Member] | |
Debt Instrument [Line Items] | |
Debt Instrument, Basis Spread on Variable Rate | 2.00% |
Earnings Per Share Calculations
Earnings Per Share Calculations of Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Earnings Per Share [Abstract] | |||||||||||
Income (Loss) from Continuing Operations, Net of Tax, Attributable to Parent | $ 83.6 | $ 109.8 | $ 111.5 | ||||||||
Weighted Average Number of Shares Outstanding, Basic | 131,226,110 | 124,954,248 | 124,787,819 | ||||||||
Dilutive Securities, Effect on Basic Earnings Per Share, Dilutive Convertible Securities | 1,975,106 | 1,783,537 | 1,082,275 | ||||||||
Weighted Average Number of Shares Outstanding, Diluted | 133,201,216 | 126,737,785 | 125,870,094 | ||||||||
Earnings Per Share, Basic | $ 0.62 | $ 0.14 | $ (0.16) | $ 0.03 | $ 0.49 | $ 0.21 | $ 0.14 | $ 0.04 | $ 0.64 | $ 0.88 | $ 0.89 |
Earnings Per Share, Diluted | $ 0.61 | $ 0.14 | $ (0.16) | $ 0.03 | $ 0.49 | $ 0.21 | $ 0.14 | $ 0.04 | $ 0.63 | $ 0.87 | $ 0.89 |
Earnings Per Share Earnings Per
Earnings Per Share Earnings Per Share - Additional Details (Details) - shares shares in Millions | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Stock Compensation Plan [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 0.4 | 0.4 | 2.2 |
Employee Stock Options and RSUs [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 0.4 | 0.8 | 1 |
Derivative Instruments and He64
Derivative Instruments and Hedging Activities - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Derivative [Line Items] | ||
Derivatives used in Net Investment Hedge, Increase (Decrease), Gross of Tax | $ (12.5) | $ (21.3) |
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | (11.8) | $ (21.3) |
Net accumulated gain related to investment hedges | 47.6 | |
Euro Denominated Debt Outstanding [Member] | ||
Derivative [Line Items] | ||
Debt and Capital Lease Obligations | $ 797.3 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 12 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Income Tax Contingency [Line Items] | ||||
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | $ 2,200,000 | $ 41,400,000 | ||
Undistributed Earnings of Foreign Subsidiaries | $ 97,200,000 | |||
U.S. Federal Statutory Income Tax Rate | 21.00% | 35.00% | ||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 28.10% | |||
Effective Income Tax Rate Reconciliation, Repatriation of Foreign Earnings, Amount | $ 0 | |||
Deferred Tax Assets, Valuation Allowance | 86,200,000 | $ 78,800,000 | ||
Unrecognized Tax Benefits | 2,200,000 | 52,500,000 | $ 61,500,000 | $ 66,900,000 |
Tax Adjustments, Settlements, and Unusual Provisions | (33,800,000) | |||
Unrecognized Tax Benefits, Interest on Income Taxes Accrued | 2,000,000 | 5,000,000 | $ 5,600,000 | |
Unrecognized Tax Benefits, Increase (Decrease) in Interest on Income Taxes Accrued | (3,000,000) | |||
Unrecognized Tax Benefits Income Tax Penalties And Interest Accrued Subject To Indemnification | 1,600,000 | |||
Unrecognized Tax Benefits, Increase (Decrease) in Interest on Income Taxes Accrued Subject to Indemnification | (200,000) | |||
Deferred Tax Assets, Net | 400,000 | $ 22,200,000 | ||
Domestic Tax Authority [Member] | ||||
Income Tax Contingency [Line Items] | ||||
Operating Loss Carryforwards | 30,600,000 | |||
Losses Generated | 900,000 | |||
State and Local Jurisdiction [Member] | ||||
Income Tax Contingency [Line Items] | ||||
Operating Loss Carryforwards | 422,200,000 | |||
Losses Generated | $ 49,500,000 | |||
Operating Loss Carryforwards, Carry Forward Period | 20 years | |||
Deferred Tax Assets, Valuation Allowance | $ 418,000,000 | |||
Foreign Tax Authority [Member] | ||||
Income Tax Contingency [Line Items] | ||||
Operating Loss Carryforwards | $ 145,100,000 | |||
Operating Loss Carryforwards, Carry Forward Period | 3 years | |||
Net Operating (Loss) [Member] | ||||
Income Tax Contingency [Line Items] | ||||
Tax Adjustments, Settlements, and Unusual Provisions | $ 13,700,000 | |||
Tax Cuts and Job Act, Tax Effect [Member] | ||||
Income Tax Contingency [Line Items] | ||||
Deferred Tax Assets, Net | $ 6,200,000 |
Schedule of Income before Tax D
Schedule of Income before Tax Domestic and Foreign (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Income Tax Disclosure [Abstract] | |||
U.S. Operations | $ 13.3 | $ 5 | $ 60 |
Non-U.S. Operation | 138.7 | 130.6 | 84.9 |
Earnings from continuing operations before income taxes | $ 152 | $ 135.6 | $ 144.9 |
Income Taxes-Components of Inco
Income Taxes-Components of Income Tax Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Current Income Tax Expense (Benefit), Continuing Operations [Abstract] | |||
Federal | $ 14.1 | $ 2.1 | $ (0.6) |
State and local | 0.1 | (0.4) | (0.2) |
Non-U.S. | 24.9 | 22.7 | 26.3 |
Total | 39.1 | 24.4 | 25.5 |
Deferred: | |||
Federal | 24.2 | 1.9 | 19.6 |
State and local | (1) | 1.4 | (4.8) |
Non-U.S. | 6.1 | (1.9) | (6.6) |
Total | 29.3 | 1.4 | 8.2 |
Total provision/(benefit) | $ 68.4 | $ 25.8 | $ 33.7 |
Income Taxes-Income Tax Reconci
Income Taxes-Income Tax Reconciliation (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Income Tax Disclosure [Abstract] | |||
Provision at U.S. federal statutory tax rate | $ 42.7 | $ 47.4 | $ 50.7 |
State and local income taxes | 3 | (1.5) | (3) |
Foreign tax rate differential | (15.4) | (25.7) | (21.7) |
Permanent items | 2.7 | 2.9 | (2.3) |
Unrecognized tax positions | (2.4) | (0.3) | 5.6 |
Tax valuation allowance | 1.7 | 3.1 | 7.2 |
Withholding Tax and other foreign taxes | 1.3 | (0.2) | 0.6 |
Change in tax rate | (3.6) | 2 | (3.2) |
Effective Income Tax Rate Reconciliation, Tax Credit, Research, Amount | (2.4) | (1.2) | (1.4) |
Tax Cuts and Jobs Act, Tax Effect | 42.5 | 0 | 0 |
Other | (1.7) | (0.7) | 1.2 |
Total provision/(benefit) | $ 68.4 | $ 25.8 | $ 33.7 |
Income Taxes-Deferred Tax Asset
Income Taxes-Deferred Tax Assets (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Jun. 30, 2017 |
Deferred income tax assets: | ||
Accrued liabilities | $ 19.9 | $ 27.4 |
Equity compensation | 12.9 | 16.4 |
Loss and tax credit carryforwards | 118.9 | 141 |
Foreign currency | 9.5 | 11.5 |
Pension | 29.4 | 39.4 |
Property-related | 9.7 | 9.4 |
Intangibles | 22.5 | 26.3 |
Other | 1.9 | 25.7 |
Euro Denominated Debt | 11.5 | 22.8 |
Total deferred income tax assets | 236.2 | 319.9 |
Valuation allowance | (86.2) | (78.8) |
Net deferred income tax assets | 150 | 241.1 |
Deferred income tax liabilities: | ||
Accrued liabilities | (0.8) | (0.8) |
Foreign currency | (0.9) | (1.3) |
Property-related | (50.2) | (57.6) |
Goodwill and other intangibles | (95.6) | (151.1) |
Other | (2.1) | (8.1) |
Total deferred income tax liabilities | (149.6) | (218.9) |
Deferred Tax Assets, Net | $ 0.4 | $ 22.2 |
Income Taxes-Balance Sheet (Det
Income Taxes-Balance Sheet (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Jun. 30, 2017 |
Income Tax Disclosure [Abstract] | ||
Non-current deferred tax asset | $ 32.9 | $ 53.9 |
Non-current deferred tax liability | 32.5 | 31.7 |
Deferred Tax Assets, Net | $ 0.4 | $ 22.2 |
Income Taxes-Unrecognized Tax B
Income Taxes-Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Reconciliation of Unrecognized Tax Benefits [Roll Forward] | |||
Beginning Balance | $ 52.5 | $ 61.5 | $ 66.9 |
Additions based on tax positions related to the current year | 0.1 | 3.3 | 6.2 |
Additions for tax positions of prior years | 0 | 0.1 | 0 |
Reductions for tax positions of prior years | (2.7) | (6.8) | (11) |
Settlements | (47.5) | (5.4) | 0 |
Unrecognized Tax Benefits, Reduction Resulting from Lapse of Applicable Statute of Limitations | (0.2) | (0.2) | (0.6) |
Ending Balance | $ 2.2 | $ 52.5 | $ 61.5 |
Income Taxes U.S. Tax Reform
Income Taxes U.S. Tax Reform - USD ($) number in Millions, $ in Millions | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
U.S. Tax Reform [Line Items] | |||
Tax Cuts and Jobs Act, Tax Effect | $ (42.5) | $ 0 | $ 0 |
Deferred Tax Liabilities, Undistributed Foreign Earnings | 0.9 | 1.3 | |
Deferred Tax Assets, Net | $ 0.4 | $ 22.2 | |
Tax Cuts and Job Act, Tax Effect [Member] | |||
U.S. Tax Reform [Line Items] | |||
Non-U.S. | 3700.00% | ||
Deferred Tax Liabilities, Undistributed Foreign Earnings | $ 11.4 | ||
Deferred Tax Assets, Net | 6.2 | ||
Provisional [Member] | |||
U.S. Tax Reform [Line Items] | |||
Deferred Tax Liabilities, Undistributed Foreign Earnings | 11.4 | ||
Post-1986 Earnings and Profits | 225.4 | ||
Cash Tax Liability | $ 2.6 |
Employee Retirement Benefit P73
Employee Retirement Benefit Plans-Additional Information (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Jun. 30, 2017 |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Multiemployer Plans, Estimated Annual Cash Contribution | $ 1.7 | |
Eberbach Pension Promissory Note or Loan [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Stated interest rate (percent) | 5.00% | |
Multiemployer Plans, Pension [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Multiemployer Plans, Minimum Contribution | $ 39 | |
Withdrawal obligation | $ 39.1 |
Employee Retirement Benefit P74
Employee Retirement Benefit Plans-Accumulated Benefit Obligation (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Employer contributions between measurement date and reporting date | ||||
Fair value of plan assets at beginning of year | $ 244.6 | |||
Fair value of plan assets at end of year | 258.1 | $ 244.6 | ||
Retirement Benefits [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Amortization of Gain (Loss) | 2.4 | 4.4 | ||
Accumulated Benefit Obligation | $ 322.7 | $ 322.4 | ||
Change in Benefit Obligation | ||||
Benefit obligation at beginning of year | 330.6 | 336.6 | ||
Company service cost | 3.5 | 3.2 | ||
Interest cost | 7.3 | 6.6 | ||
Defined Benefit Plan, Benefit Obligation, Contributions by Plan Participant | 0.3 | 0 | ||
Plan amendments | 0 | 0 | ||
Curtailments | 0 | 0 | ||
Settlements | (0.2) | 0 | ||
Special termination benefits | 0 | 0 | ||
Divestitures | 0 | 0 | ||
Other | 0 | 5.5 | ||
Defined Benefit Plan, Benefit Obligation, Benefits Paid | 14.8 | 11 | ||
Actual expenses | 0 | 0 | ||
Actuarial (gain)/loss | (4.5) | (6.4) | ||
Exchange rate gain/(loss) | 8.9 | (3.9) | ||
Benefit obligation at end of year | 331.1 | 330.6 | ||
Employer contributions between measurement date and reporting date | ||||
Fair value of plan assets at beginning of year | 244.6 | 227.6 | ||
Actual return on plan assets | 10.6 | 18.4 | ||
Company contributions | 11.2 | 10.6 | ||
Defined Benefit Plan, Plan Assets, Contributions by Plan Participant | 0.3 | 0 | ||
Settlements | (0.2) | 0 | ||
Special company contributions to fund termination benefits | 0 | 0 | ||
Divestitures | 0 | 0 | ||
Other | 0 | 4.5 | ||
Defined Benefit Plan, Plan Assets, Benefits Paid | (14.8) | (11) | ||
Actual expenses | 0 | 0 | ||
Exchange rate gain/(loss) | 6.4 | (5.5) | ||
Fair value of plan assets at end of year | 258.1 | 244.6 | ||
Funded status at end of year | (73) | (86) | ||
Employer contributions between measurement date and reporting date | 0 | 0 | ||
Net Pension assets (liabilities) | (73) | (86) | (73) | (86) |
Defined Benefit Plan, Benefit Obligation, Contributions by Plan Participant | 0.3 | 0 | ||
Other Post-Retirement Benefits [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Amortization of Gain (Loss) | (0.1) | (0.2) | ||
Accumulated Benefit Obligation | 2.8 | 2.8 | ||
Change in Benefit Obligation | ||||
Benefit obligation at beginning of year | 2.8 | 3.6 | ||
Company service cost | 0 | 0 | ||
Interest cost | 0 | 0.1 | ||
Defined Benefit Plan, Benefit Obligation, Contributions by Plan Participant | 0 | 0 | ||
Plan amendments | 0 | 0 | ||
Curtailments | 0 | 0 | ||
Settlements | 0 | 0 | ||
Special termination benefits | 0 | 0 | ||
Divestitures | 0 | 0 | ||
Other | 0 | 0 | ||
Defined Benefit Plan, Benefit Obligation, Benefits Paid | 0.2 | 0.8 | ||
Actual expenses | 0 | 0 | ||
Actuarial (gain)/loss | 0.2 | (0.1) | ||
Exchange rate gain/(loss) | 0 | 0 | ||
Benefit obligation at end of year | 2.8 | 2.8 | ||
Employer contributions between measurement date and reporting date | ||||
Fair value of plan assets at beginning of year | 0 | 0 | ||
Actual return on plan assets | 0 | 0 | ||
Company contributions | 0.2 | 0.7 | ||
Defined Benefit Plan, Plan Assets, Contributions by Plan Participant | 0 | 0 | ||
Settlements | 0 | 0 | ||
Special company contributions to fund termination benefits | 0 | 0 | ||
Divestitures | 0 | 0 | ||
Other | 0 | 0 | ||
Defined Benefit Plan, Plan Assets, Benefits Paid | (0.2) | (0.7) | ||
Actual expenses | 0 | 0 | ||
Exchange rate gain/(loss) | 0 | 0 | ||
Fair value of plan assets at end of year | 0 | 0 | ||
Funded status at end of year | (2.8) | (2.8) | ||
Employer contributions between measurement date and reporting date | 0 | 0 | ||
Net Pension assets (liabilities) | (2.8) | (2.8) | $ (2.8) | $ (2.8) |
Defined Benefit Plan, Benefit Obligation, Contributions by Plan Participant | $ 0 | $ 0 |
Employee Retirement Benefit P75
Employee Retirement Benefit Plans-Balance Sheet (Details) - USD ($) $ in Millions | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Retirement Benefits [Member] | ||
Amounts Recognized in Statement of Financial Position | ||
Noncurrent assets | $ 18 | $ 2.7 |
Current liabilities | (0.8) | (0.8) |
Noncurrent liabilities | (90.2) | (87.9) |
Funded status at end of year | (73) | (86) |
Amounts Recognized in Accumulated Other Comprehensive Income | ||
Transition (asset)/obligation | 0 | 0 |
Prior service cost | (0.5) | (0.5) |
Net (gain)/loss | 53 | 58.2 |
Total accumulated other comprehensive income at the end of the year | 52.5 | 57.7 |
Additional Information for Plan with ABO in Excess of Plan Assets | ||
Projected benefit obligation | 157.8 | 153.1 |
Accumulated benefit obligation | 152.1 | 147.5 |
Fair value of plan assets | 66.7 | 64.5 |
Defined Benefit Plan, Plan with Benefit Obligation in Excess of Plan Assets [Abstract] | ||
Defined Benefit Plan, Plans with Benefit Obligations in Excess of Plan Assets, Projected Benefit Obligation | 157.8 | 153.1 |
Defined Benefit Plan, Plan with Benefit Obligation in Excess of Plan Assets, Benefit Obligation | 152.1 | 147.5 |
Defined Benefit Plan, Plan with Benefit Obligation in Excess of Plan Assets, Fair Value of Plan Assets | 66.7 | 64.5 |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | ||
Service Cost | 3.5 | 3.2 |
Interest Cost | 7.3 | 6.6 |
Expected return on plan assets | (11.9) | (11) |
Transition (asset)/obligation | 0 | 0 |
Prior service cost | 0 | 0 |
Net (gain)/loss | 2.4 | 4.4 |
Net periodic benefit cost | 1.3 | 3.2 |
Other Post-Retirement Benefits [Member] | ||
Amounts Recognized in Statement of Financial Position | ||
Noncurrent assets | 0 | 0 |
Current liabilities | (0.3) | (0.3) |
Noncurrent liabilities | (2.5) | (2.5) |
Funded status at end of year | (2.8) | (2.8) |
Amounts Recognized in Accumulated Other Comprehensive Income | ||
Transition (asset)/obligation | 0 | 0 |
Prior service cost | 0 | 0 |
Net (gain)/loss | (1.1) | (1.5) |
Total accumulated other comprehensive income at the end of the year | (1.1) | (1.5) |
Additional Information for Plan with ABO in Excess of Plan Assets | ||
Projected benefit obligation | 2.8 | 2.8 |
Accumulated benefit obligation | 2.8 | 2.8 |
Fair value of plan assets | 0 | 0 |
Defined Benefit Plan, Plan with Benefit Obligation in Excess of Plan Assets [Abstract] | ||
Defined Benefit Plan, Plans with Benefit Obligations in Excess of Plan Assets, Projected Benefit Obligation | 2.8 | 2.8 |
Defined Benefit Plan, Plan with Benefit Obligation in Excess of Plan Assets, Benefit Obligation | 2.8 | 2.8 |
Defined Benefit Plan, Plan with Benefit Obligation in Excess of Plan Assets, Fair Value of Plan Assets | 0 | 0 |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | ||
Service Cost | 0 | 0 |
Interest Cost | 0 | 0.1 |
Expected return on plan assets | 0 | 0 |
Transition (asset)/obligation | 0 | 0 |
Prior service cost | 0 | 0 |
Net (gain)/loss | (0.1) | (0.2) |
Net periodic benefit cost | $ (0.1) | $ (0.1) |
Employee Retirement Benefit P76
Employee Retirement Benefit Plans-AOCI (Details) - USD ($) | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Defined Benefit Plan, Amounts Recognized in Other Comprehensive Income (Loss) [Abstract] | |||
Net (gain)/loss arising during the year | $ 2,900,000 | $ 13,900,000 | $ (16,400,000) |
Net (gain)/loss recognized during the year | 2,300,000 | 4,300,000 | 3,400,000 |
Total Pension, pretax | 4,900,000 | 18,700,000 | $ (13,200,000) |
Retirement Benefits [Member] | |||
Defined Benefit Plan, Amounts Recognized in Other Comprehensive Income (Loss) [Abstract] | |||
Net (gain)/loss arising during the year | (3,100,000) | (13,800,000) | |
Prior service cost (credit) during the year | 0 | 0 | |
Transition asset/(obligation) recognized during the year | 0 | 0 | |
Net (gain)/loss recognized during the year | 0 | 0 | |
Net gain/(loss) recognized during the year | (2,400,000) | (4,400,000) | |
Exchange rate gain/(loss) recognized during the year | 300,000 | (500,000) | |
Total Pension, pretax | (5,200,000) | (18,700,000) | |
Other Comprehensive (Income) Loss, Defined Benefit Plan, Prior Service Cost (Credit), after Tax | (3,900,000) | (15,500,000) | |
Estimated Amounts to be Amortized from Accumulated Other Comprehensive Income into Net Periodic Benefit Cost | |||
Transition (asset)/obligation | 0 | 0 | |
Prior service cost/(credit) | 0 | 0 | |
Net (gain)/loss | $ 2,600,000 | $ 2,300,000 | |
Financial Assumptions Used to Determine Benefit Obligations at the Balance Sheet Date | |||
Discount rate (percent) | 2.50% | 2.49% | |
Rate of compensation increases (percent) | 2.03% | 2.09% | |
Financial Assumptions Used to Determine Net Periodic Benefit Cost for Financial Year | |||
Discount rate (percent) | 2.49% | 2.33% | |
Rate of compensation increases (percent) | 2.04% | 2.09% | |
Expected long-term rate of return (percent) | 5.09% | 5.46% | |
Expected Future Contributions | |||
Fiscal Year 2019 Expected Future Contributions | $ 9,400,000 | $ 10,300,000 | |
Other Post-Retirement Benefits [Member] | |||
Defined Benefit Plan, Amounts Recognized in Other Comprehensive Income (Loss) [Abstract] | |||
Net (gain)/loss arising during the year | 200,000 | (100,000) | |
Prior service cost (credit) during the year | 0 | 0 | |
Transition asset/(obligation) recognized during the year | 0 | 0 | |
Net (gain)/loss recognized during the year | 0 | 0 | |
Net gain/(loss) recognized during the year | 100,000 | 100,000 | |
Exchange rate gain/(loss) recognized during the year | 0 | 0 | |
Total Pension, pretax | 300,000 | 0 | |
Other Comprehensive (Income) Loss, Defined Benefit Plan, Prior Service Cost (Credit), after Tax | 300,000 | (100,000) | |
Estimated Amounts to be Amortized from Accumulated Other Comprehensive Income into Net Periodic Benefit Cost | |||
Transition (asset)/obligation | 0 | 0 | |
Prior service cost/(credit) | 0 | 0 | |
Net (gain)/loss | $ (100,000) | $ (100,000) | |
Financial Assumptions Used to Determine Benefit Obligations at the Balance Sheet Date | |||
Discount rate (percent) | 3.79% | 3.28% | |
Financial Assumptions Used to Determine Net Periodic Benefit Cost for Financial Year | |||
Discount rate (percent) | 3.28% | 2.89% | |
Expected Future Contributions | |||
Fiscal Year 2019 Expected Future Contributions | $ 311,318 | $ 277,080 |
Employee Retirement Benefit P77
Employee Retirement Benefit Plans-Fiscal Year Maturity (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Jun. 30, 2017 |
Retirement Benefits [Member] | ||
Expected Future Benefit Payments | ||
Defined Benefit Plan, Expected Future Benefit Payment, Next Twelve Months | $ 11 | $ 10.8 |
Defined Benefit Plan, Expected Future Benefit Payment, Year Two | 12.2 | 10.6 |
Defined Benefit Plan, Expected Future Benefit Payment, Year Three | 11.8 | 12.3 |
Defined Benefit Plan, Expected Future Benefit Payment, Year Four | 12.3 | 11.6 |
Defined Benefit Plan, Expected Future Benefit Payment, Year Five | 13.2 | 12.1 |
Defined Benefit Plan, Expected Future Benefit Payment, Five Fiscal Years Thereafter | $ 77.7 | $ 73.7 |
Actual Asset Allocation (percent) | 100.00% | 100.00% |
Actual Asset Allocation | $ 258.1 | $ 244.6 |
Target Asset Allocation (percent) | 100.00% | 100.00% |
Retirement Benefits [Member] | Equity Securities [Member] | ||
Expected Future Benefit Payments | ||
Actual Asset Allocation (percent) | 22.70% | 22.90% |
Actual Asset Allocation | $ 58.7 | $ 56 |
Target Asset Allocation (percent) | 22.80% | 23.80% |
Retirement Benefits [Member] | US Government Agencies Debt Securities [Member] | ||
Expected Future Benefit Payments | ||
Actual Asset Allocation (percent) | 28.90% | 27.00% |
Actual Asset Allocation | $ 74.5 | $ 66 |
Target Asset Allocation (percent) | 29.70% | 29.60% |
Retirement Benefits [Member] | Corporate Debt Securities [Member] | ||
Expected Future Benefit Payments | ||
Actual Asset Allocation (percent) | 14.10% | 12.50% |
Actual Asset Allocation | $ 36.4 | $ 30.5 |
Target Asset Allocation (percent) | 13.60% | 12.10% |
Retirement Benefits [Member] | Real Estate [Member] | ||
Expected Future Benefit Payments | ||
Actual Asset Allocation (percent) | 2.40% | 2.50% |
Actual Asset Allocation | $ 6.2 | $ 6.2 |
Target Asset Allocation (percent) | 2.90% | 2.70% |
Retirement Benefits [Member] | Insurance Contracts [Member] | ||
Expected Future Benefit Payments | ||
Actual Asset Allocation (percent) | 9.30% | 9.20% |
Actual Asset Allocation | $ 24 | $ 22.5 |
Target Asset Allocation (percent) | 10.10% | 10.00% |
Retirement Benefits [Member] | Other Assets [Member] | ||
Expected Future Benefit Payments | ||
Actual Asset Allocation (percent) | 22.60% | 25.90% |
Actual Asset Allocation | $ 58.3 | $ 63.4 |
Target Asset Allocation (percent) | 20.90% | 21.80% |
Other Post-Retirement Benefits [Member] | ||
Expected Future Benefit Payments | ||
Defined Benefit Plan, Expected Future Benefit Payment, Next Twelve Months | $ 0.3 | $ 0.3 |
Defined Benefit Plan, Expected Future Benefit Payment, Year Two | 0.3 | 0.3 |
Defined Benefit Plan, Expected Future Benefit Payment, Year Three | 0.3 | 0.3 |
Defined Benefit Plan, Expected Future Benefit Payment, Year Four | 0.3 | 0.2 |
Defined Benefit Plan, Expected Future Benefit Payment, Year Five | 0.2 | 0.2 |
Defined Benefit Plan, Expected Future Benefit Payment, Five Fiscal Years Thereafter | $ 1 | $ 0.9 |
Actual Asset Allocation (percent) | 0.00% | 0.00% |
Actual Asset Allocation | $ 0 | $ 0 |
Target Asset Allocation (percent) | 0.00% | 0.00% |
Other Post-Retirement Benefits [Member] | Equity Securities [Member] | ||
Expected Future Benefit Payments | ||
Actual Asset Allocation (percent) | 0.00% | 0.00% |
Actual Asset Allocation | $ 0 | $ 0 |
Target Asset Allocation (percent) | 0.00% | 0.00% |
Other Post-Retirement Benefits [Member] | US Government Agencies Debt Securities [Member] | ||
Expected Future Benefit Payments | ||
Actual Asset Allocation (percent) | 0.00% | 0.00% |
Actual Asset Allocation | $ 0 | $ 0 |
Target Asset Allocation (percent) | 0.00% | 0.00% |
Other Post-Retirement Benefits [Member] | Corporate Debt Securities [Member] | ||
Expected Future Benefit Payments | ||
Actual Asset Allocation (percent) | 0.00% | 0.00% |
Actual Asset Allocation | $ 0 | $ 0 |
Target Asset Allocation (percent) | 0.00% | 0.00% |
Other Post-Retirement Benefits [Member] | Real Estate [Member] | ||
Expected Future Benefit Payments | ||
Actual Asset Allocation (percent) | 0.00% | 0.00% |
Actual Asset Allocation | $ 0 | $ 0 |
Target Asset Allocation (percent) | 0.00% | 0.00% |
Other Post-Retirement Benefits [Member] | Insurance Contracts [Member] | ||
Expected Future Benefit Payments | ||
Actual Asset Allocation (percent) | 0.00% | 0.00% |
Actual Asset Allocation | $ 0 | $ 0 |
Target Asset Allocation (percent) | 0.00% | 0.00% |
Other Post-Retirement Benefits [Member] | Other Assets [Member] | ||
Expected Future Benefit Payments | ||
Actual Asset Allocation (percent) | 0.00% | 0.00% |
Actual Asset Allocation | $ 0 | $ 0 |
Target Asset Allocation (percent) | 0.00% | 0.00% |
Employee Retirement Benefit P78
Employee Retirement Benefit Plans-Fair Value (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Jun. 30, 2017 |
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $ 258.1 | $ 244.6 |
Level 1 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 3 | 0 |
Level 2 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 232.3 | 222.8 |
Level 3 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 20.9 | 20.1 |
Equity Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 58.7 | 56 |
Equity Securities [Member] | Level 1 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 1.8 | 0 |
Equity Securities [Member] | Level 2 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 56.9 | 56 |
Equity Securities [Member] | Level 3 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Debt Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 110.9 | 96.5 |
Debt Securities [Member] | Level 1 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0.1 | 0 |
Debt Securities [Member] | Level 2 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 110.8 | 96.5 |
Debt Securities [Member] | Level 3 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Real Estate [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 6.2 | 6.2 |
Real Estate [Member] | Level 1 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0.4 | 0 |
Real Estate [Member] | Level 2 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 3.9 | 4.5 |
Real Estate [Member] | Level 3 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Other Assets [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 82.3 | 85.9 |
Other Assets [Member] | Level 1 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0.7 | 0 |
Other Assets [Member] | Level 2 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 60.7 | 65.8 |
Other Assets [Member] | Level 3 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 20.9 | 20.1 |
Other [Member] | Level 2 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 26.9 | 36.6 |
Accounting Standards Update 2015-07 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 1.9 | 1.7 |
Accounting Standards Update 2015-07 [Member] | Equity Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Accounting Standards Update 2015-07 [Member] | Debt Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Accounting Standards Update 2015-07 [Member] | Real Estate [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 1.9 | 1.7 |
Accounting Standards Update 2015-07 [Member] | Other Assets [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $ 0 | $ 0 |
Employee Retirement Benefit P79
Employee Retirement Benefit Plans-Level 3 (Details) - Level 3 [Member] $ in Millions | 12 Months Ended |
Jun. 30, 2018USD ($) | |
Employer contributions between measurement date and reporting date | |
Beginning balance | $ 20.1 |
Relating to assets still held at the reporting date | 1.5 |
Relating to assets sold during the period | 0 |
Purchases, sales, settlements, contributions and benefits paid | (1.8) |
Transfers in and/or out of Level 3 | 1.1 |
Ending balance | 20.9 |
Insurance Contracts [Member] | |
Employer contributions between measurement date and reporting date | |
Beginning balance | 3 |
Relating to assets still held at the reporting date | 0.1 |
Relating to assets sold during the period | 0 |
Purchases, sales, settlements, contributions and benefits paid | (0.2) |
Transfers in and/or out of Level 3 | 0 |
Ending balance | 2.9 |
Other Unobservable Assets [Member] | |
Employer contributions between measurement date and reporting date | |
Beginning balance | 17.1 |
Relating to assets still held at the reporting date | 1.4 |
Relating to assets sold during the period | 0 |
Purchases, sales, settlements, contributions and benefits paid | (1.6) |
Transfers in and/or out of Level 3 | 1.1 |
Ending balance | $ 18 |
Employee Retirement Benefit P80
Employee Retirement Benefit Plans-Assumed Healthcare Trend Rates (Details) - Other Post-Retirement Benefits [Member] - USD ($) | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Effect of 1% Change in Healthcare Cost Trend Rate | ||
Effect of 1% increase on APBO at balance sheet date | $ 120,821 | $ 122,687 |
Effect of 1% increase on total service and interest cost | 3,118 | 2,884 |
Effect of 1% decrease on APBO at balance sheet date | (108,873) | (109,956) |
Effect of 1% decrease on total service and interest cost | (2,804) | (2,583) |
Fiscal Year 2019 Expected Future Contributions | $ 311,318 | $ 277,080 |
Post 65 [Member] | ||
Assumed Healthcare Cost Trend Rates at the Balance Sheet Date | ||
Healthcare cost trend rate-initial (percent) | (1.42%) | 8.02% |
Healthcare cost trend rate-ulitimate (percent) | 4.83% | 4.81% |
Year in which ultimate rates are reached | 2,026 | 2,026 |
Equity and Accumulated Other 81
Equity and Accumulated Other Comprehensive Income (Loss) Equity (Details) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2014shares | Jun. 30, 2018USD ($)vote$ / sharesshares | Sep. 30, 2017$ / shares | Jun. 30, 2017$ / sharesshares | |
Equity [Abstract] | ||||
Common Stock, Shares Authorized | 1,000,000,000 | 1,000,000,000 | ||
Common stock, par value (usd per share) | $ / shares | $ 0.01 | $ 0.01 | ||
Preferred Stock, Shares Authorized | 100,000,000 | 100,000,000 | ||
Preferred Stock, Par or Stated Value Per Share | $ / shares | $ 0.01 | $ 0.01 | ||
Common Stock, Amount of Votes | vote | 1 | |||
Stock Issued During Period, Shares, New Issues | 48,900,000 | 7,400,000 | ||
Shares Issued, Price Per Share | $ / shares | $ 39.10 | $ 39.10 | ||
Stock Issued During Period, Value, New Issues | $ | $ 277.8 | |||
Restricted Stock, Shares Issued Net of Shares for Tax Withholdings | 400,000 |
Equity and Accumulated Other 82
Equity and Accumulated Other Comprehensive Income (Loss) Accumulated Other Comprehensive Earnings/(Loss) (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended | |||
Dec. 31, 2016 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Other comprehensive income /(loss), net of tax | $ (11.7) | $ (8.4) | $ (131.7) | ||
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, after Tax | (4.3) | (13) | 9.1 | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (325.8) | (314.1) | (305.7) | $ (174) | |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | (4.4) | (31.9) | (118.8) | ||
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, Net of Tax | $ 15.3 | (11.6) | 10.5 | 0 | |
Accumulated Translation Adjustment [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (285.1) | (280.7) | (248.8) | (130) | |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | (31.9) | (118.8) | |||
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (1.1) | 10.5 | 0 | 0 | |
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, Net of Tax | 10.5 | 0 | |||
Accumulated Deferred Compensation [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Other comprehensive income /(loss), net of tax | 0 | 0 | (3.8) | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax | 0 | 0 | 0 | 3.8 | |
Accumulated Defined Benefit Plans Adjustment [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, after Tax | (13) | 9.1 | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax | $ (39.6) | $ (43.9) | $ (56.9) | $ (47.8) |
Equity and Accumulated Other 83
Equity and Accumulated Other Comprehensive Income (Loss)-Minimum Pension Liability (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended | |||
Dec. 31, 2016 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | ||
Equity [Abstract] | |||||
Net investment hedge | $ (12.5) | $ (21.3) | $ 1.8 | ||
Long term inter-company loans | 9.3 | (14.3) | (65) | ||
Translation adjustments | (10.1) | (3.8) | (54.9) | ||
Total foreign currency translation adjustments, pretax | (13.3) | (39.4) | (118.1) | ||
Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Tax | [1] | (8.9) | (7.5) | 0.7 | |
Total foreign currency translation adjustments, net of tax | (4.4) | (31.9) | (118.8) | ||
Net gain/(loss) arising during the year | (2.9) | (13.9) | 16.4 | ||
Net (gain)/loss recognized during the year | 2.3 | 4.3 | 3.4 | ||
Foreign Exchange Translation and Other | (0.3) | 0.5 | (0.2) | ||
Total Pension, pretax | 4.9 | 18.7 | (13.2) | ||
Pension liability tax | 0.6 | 5.7 | (4.1) | ||
Net change in minimum pension liability, net of tax | 4.3 | 13 | (9.1) | ||
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, before Tax | (16.2) | 16.2 | 0 | ||
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, before Reclassification Adjustments, Net of Tax | 0 | 0 | 0 | ||
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, before Tax | (16.2) | 16.2 | 0 | ||
Other Comprehensive Income (Loss), Available-for-sale Securities, Tax | (4.6) | 5.7 | 0 | ||
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, Net of Tax | $ 15.3 | $ (11.6) | $ 10.5 | $ 0 | |
[1] | Year Ended June 30,(Dollars in millions)2018 2017 2016Foreign currency translation adjustments: Net investment hedge$(12.5) $(21.3) $1.8Long term inter-company loans9.3 (14.3) (65.0)Translation adjustments(10.1) (3.8) (54.9)Total foreign currency translation adjustments, pretax(13.3) (39.4) (118.1)Tax expense/(benefit)(8.9) (7.5) 0.7Total foreign currency translation adjustments, net of tax$(4.4) $(31.9) $(118.8) Net change in minimum pension liability Net gain/(loss) arising during the year$2.9 $13.9 $(16.4)Net (gain)/loss recognized during the year2.3 4.3 3.4Foreign exchange translation and other(0.3) 0.5 (0.2)Total minimum pension liability, pretax4.9 18.7 (13.2)Tax expense/(benefit)0.6 5.7 (4.1)Net change in minimum pension liability, net of tax$4.3 $13.0 $(9.1) Net change in available for sale investment: Net gain/(loss) arising during the year$(16.2) $16.2 $—Net (gain)/loss recognized during the year— — —Foreign exchange translation and other— — —Total change in available for sale investment, pretax(16.2) 16.2 —Tax expense/(benefit)(4.6) 5.7 —Net change in available for sale investment, net of tax$(11.6) $10.5 $— |
Equity Based Compensation (Addi
Equity Based Compensation (Additional) (Details) - USD ($) | 12 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | Jul. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 240,000 | 304,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Weighted Average Grant Date Fair Value | $ 10.39 | $ 7.13 | $ 10.68 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value | $ 15,300,000 | $ 14,900,000 | ||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 2 years 8 months | |||
Weighted Average Grant Date Fair Value of Restricted Stock Unit | $ 44,600,000 | 24,800,000 | ||
Stock Option Granted Contractual Term | 10 years | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost | $ 27,200,000 | 20,900,000 | $ 10,800,000 | |
Restricted Stock Units (RSUs) [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 1 year 9 months 24 days | |||
Weighted Average Grant Date Fair Value of Restricted Stock Unit | $ 34.99 | 25.20 | 32.82 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value | $ 13,600,000 | $ 1,100,000 | $ 1,200,000 | |
Restricted Stock Units (RSUs) [Member] | Minimum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 2 years | |||
Restricted Stock Units (RSUs) [Member] | Maximum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | |||
Employee Stock Option [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share Based Compensation Arrangement by Share Based Payment Award, Fair Value Assumptions, Expected Dividend Payments, Per Share | $ 0 | $ 0 | $ 0 | |
Employee Stock Option [Member] | Minimum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate | 24.00% | 25.00% | 28.00% | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | 1.90% | 1.20% | 1.50% | |
Employee Stock Option [Member] | Maximum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate | 27.00% | 27.00% | 31.00% | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | 6 years 3 months | 6 years 3 months | 6 years 3 months | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | 2.10% | 1.30% | 1.70% | |
Performance Shares [Member] | Minimum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate | 32.00% | 32.00% | ||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | 2 years 4 months 25 days | 2 years 4 months 25 days | ||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | 1.40% | 0.85% | ||
Performance Shares [Member] | Maximum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate | 33.00% | 35.00% | ||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | 2 years 10 months 23 days | 2 years 10 months 23 days | ||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | 2.10% | 1.36% | ||
Share Based Compensation Arrangement by Share Based Payment Award, Fair Value Assumptions, Expected Dividend Payments, Per Share | $ 0 | $ 0 | ||
Stock Compensation Plan - Omnibus [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 6,700,000 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value | $ 2,300,000 | $ 5,300,000 | $ 0 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested, Number of Shares | 442,000 | 516,000 | 369,000 |
Equity Based Compensation (Opti
Equity Based Compensation (Option Activity) (Details) - USD ($) | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Outstanding Options, Weighted Average Exercise Price | $ 23.57 | $ 20.15 | |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | 35.98 | ||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Exercises in Period, Weighted Average Exercise Price | 16.79 | ||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Forfeitures in Period, Weighted Average Exercise Price | 25.80 | ||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Expirations in Period, Weighted Average Exercise Price | 0 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Weighted Average Exercise Price | 24.35 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Weighted Average Exercise Price | $ 19.54 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | (240,000) | (304,000) | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value | $ 15,300,000 | $ 14,900,000 | |
Payments Related to Tax Withholding for Share-based Compensation | 13,700,000 | 5,400,000 | $ 8,700,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested in Period, Fair Value | 3,600,000 | 4,000,000 | |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 2,100,000 | ||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 2 years 8 months | ||
Employee Stock Option [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Payments Related to Tax Withholding for Share-based Compensation | $ 5,500,000 | $ 5,400,000 | |
Time [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 1,712,836 | 1,821,616 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 441,901 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | (411,379) | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures in Period | (139,302) | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Expirations in Period | 0 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Number | 1,712,836 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Number | 718,232 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term | 7 years 4 days | 7 years 1 month 18 days | |
Share Based Compensation Arrangement by Share Based Payment Award Options Vested and Expected to Vest Exercisable Exercised Weighted Average Remaining Contractual Term (duration) | 7 years 4 days | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Weighted Average Remaining Contractual Term | 5 years 6 months 21 days | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value | $ 27,418,051 | $ 23,380,986 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value | 8,562,833 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Aggregate Intrinsic Value | 27,418,051 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Aggregate Intrinsic Value | $ 15,040,412 | ||
Performance [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 550,623 | 623,722 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 0 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | (23,427) | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures in Period | (49,672) | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Expirations in Period | 0 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Number | 250,365 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Number | 236,337 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term | 4 years 9 months 15 days | 5 years 8 months 20 days | |
Share Based Compensation Arrangement by Share Based Payment Award Options Vested and Expected to Vest Exercisable Exercised Weighted Average Remaining Contractual Term (duration) | 4 years 6 months 14 days | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Weighted Average Remaining Contractual Term | 4 years 3 months 2 days | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value | $ 13,052,439 | $ 10,587,364 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value | 491,537 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Aggregate Intrinsic Value | 5,768,641 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Aggregate Intrinsic Value | $ 5,135,857 | ||
Market [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 117,467 | 340,068 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 0 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | (222,601) | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures in Period | 0 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Expirations in Period | 0 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Number | 117,467 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Number | 117,467 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term | 3 years 4 months 6 days | 3 years 2 months 17 days | |
Share Based Compensation Arrangement by Share Based Payment Award Options Vested and Expected to Vest Exercisable Exercised Weighted Average Remaining Contractual Term (duration) | 3 years 4 months 6 days | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Weighted Average Remaining Contractual Term | 3 years 4 months 6 days | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value | $ 3,154,413 | $ 7,661,773 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value | 6,289,313 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Aggregate Intrinsic Value | 3,154,413 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Aggregate Intrinsic Value | $ 3,154,413 |
Equity Based Compensation (RSU
Equity Based Compensation (RSU Activity) (Details) - USD ($) | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 1,275,000 | 984,000 | |
Payments Related to Tax Withholding for Share-based Compensation | $ 13,700,000 | $ 5,400,000 | $ 8,700,000 |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 2 years 8 months | ||
Weighted Average Grant Date Fair Value of Restricted Stock Unit | $ 44,600,000 | $ 24,800,000 | |
Time Based Restricted Stock Units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 1,004,236 | 914,911 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 487,080 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | 270,895 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | 126,860 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $ 31.81 | $ 25.34 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | 38.64 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | 22.65 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | $ 30.96 | ||
Performance Shares [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 577,856 | 660,600 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 442,565 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | 348,574 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | 176,735 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $ 30.30 | $ 24.81 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | 31.92 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | 22.26 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | $ 29.68 | ||
Restricted Stock Units (RSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 483,097 | 306,634 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 344,990 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | 0 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | 168,527 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $ 32.47 | $ 30.30 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | 33.76 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | 0 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | $ 31.15 | ||
Restricted Stock Units (RSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | 420,000 | 33,000 | |
Payments Related to Tax Withholding for Share-based Compensation | $ 8,200,000 | $ 0 | |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options | $ 24,000,000 | ||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 1 year 9 months 24 days | ||
Weighted Average Grant Date Fair Value of Restricted Stock Unit | $ 34.99 | 25.20 | 32.82 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value | $ 13,600,000 | $ 1,100,000 | $ 1,200,000 |
Restricted Stock Units (RSUs) [Member] | Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 2 years | ||
Restricted Stock Units (RSUs) [Member] | Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years |
Other Income _ Expense Other 87
Other Income / Expense Other Income/Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |||
Other Income and Expenses [Abstract] | |||||
Debt Instrument, Fee | 11.8 | 4.3 | 0 | ||
Foreign Currency Transaction Gain (Loss), Unrealized | [1] | $ 4.6 | $ (4.2) | $ 12.6 | |
Other Nonoperating Income (Expense) | (0.5) | 0 | 3 | [2] | |
Nonoperating Income (Expense) | (7.7) | $ (8.5) | 15.6 | ||
Debt Instrument, Unused Borrowing Capacity, Fee | $ 6.1 | ||||
Realized Investment Gains (Losses) | $ 3.8 | ||||
[1] | Foreign currency (gains) and losses include both cash and non-cash transactions. | ||||
[2] | Included within Other are realized gains associated with the sale of available-for-sale investments of $3.8 million during the fiscal year ended June 30, 2016. |
Commitments and Contingencies-F
Commitments and Contingencies-Future Payments (Details) $ in Millions | Jun. 30, 2018USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Operating Leases, Future Minimum Payments Due, Next Twelve Months | $ 10.5 |
Operating Leases, Future Minimum Payments, Due in Two Years | 7 |
Operating Leases, Future Minimum Payments, Due in Three Years | 6.1 |
Operating Leases, Future Minimum Payments, Due in Four Years | 5.4 |
Operating Leases, Future Minimum Payments, Due in Five Years | 4.9 |
Operating Leases, Future Minimum Payments, Due Thereafter | 12.5 |
Operating Leases, Future Minimum Payments Due | $ 46.4 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Operating Leases, Rent Expense | $ 16.4 | $ 13.2 | $ 9.5 |
Commitments and Contingencies C
Commitments and Contingencies Commitments and Contingencies - Claims (Details) $ in Millions | 12 Months Ended |
Jun. 30, 2018USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | |
Loss Contingency, Claims Settled, Number | 22 |
Loss Contingency, Range of Possible Loss, Portion Not Accrued | $ 1 |
Segment Information - Net Reven
Segment Information - Net Revenue and Segment Ebitda (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||||||||
Net revenue | $ 685.3 | $ 627.9 | $ 606.3 | $ 543.9 | $ 616.9 | $ 532.6 | $ 483.7 | $ 442.2 | $ 2,463.4 | $ 2,075.4 | $ 1,848.1 | |
Segment EBITDA | 453.5 | 372.2 | 374.3 | |||||||||
Inter-segment revenue elimination | (60.1) | (41.1) | (42.9) | |||||||||
Impairment charges and gain/(loss) on sale of assets | (8.7) | (9.8) | (2.7) | |||||||||
Equity compensation | (27.2) | (20.9) | (10.8) | |||||||||
Restructuring and other special items | [1] | (54.4) | (33.5) | (27.2) | ||||||||
Net Income (Loss) Attributable to Noncontrolling Interest | 0 | 0 | 0.3 | |||||||||
Other income (expense), net | [2] | (7.7) | (8.5) | 15.6 | ||||||||
Non-allocated corporate costs, net | (40.8) | (42.9) | (33.1) | |||||||||
Total unallocated costs | [3] | (138.8) | (115.6) | (57.9) | ||||||||
Softgel Technologies [Member] | ||||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||||||||
Net revenue | 917.3 | 855.3 | 775 | |||||||||
Segment EBITDA | 196.4 | 190.5 | 163.8 | |||||||||
Biologics and Specialty Drug Delivery [Member] | ||||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||||||||
Net revenue | 601.9 | 350.8 | 314.9 | |||||||||
Segment EBITDA | 146.8 | 63.4 | 61.1 | |||||||||
Oral Drug Delivery [Member] | ||||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||||||||
Net revenue | 573.9 | 561.6 | 493.6 | |||||||||
Segment EBITDA | 172.9 | 179 | 154.1 | |||||||||
Clinical Supply Services [Member] | ||||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||||||||
Net revenue | 430.4 | 348.8 | 307.5 | |||||||||
Segment EBITDA | $ 76.2 | $ 54.9 | $ 53.2 | |||||||||
[1] | {F|ahBzfndlYmZpbGluZ3MtaHJkcmoLEgZYTUxEb2MiXlhCUkxEb2NHZW5JbmZvOmE2YWVhNDQyNWNjOTQwYmM4MDIxYWJkZGFiMzcxNTk1fFRleHRTZWxlY3Rpb246Nzg5MDdCRkFBRDEyODBDMzk5OTkzQkMyRkVGQ0E0QTUM} | |||||||||||
[2] | Refer to Note 13, 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 |
Segment Information - Reconcili
Segment Information - Reconciliation of Earnings/ (loss) from Continuing Operations to Ebitda (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Segment Reporting [Abstract] | |||
Earnings/(loss) from continuing operations | $ 83.6 | $ 109.8 | $ 111.2 |
Depreciation and amortization | 190.1 | 146.5 | 140.6 |
Interest expense, net | 111.4 | 90.1 | 88.5 |
Income tax expense/(benefit) | 68.4 | 25.8 | 33.7 |
Net Income (Loss) Attributable to Noncontrolling Interest | 0 | 0 | 0.3 |
EBITDA from continuing operations | $ 453.5 | $ 372.2 | $ 374.3 |
Segment Information Total Asset
Segment Information Total Assets (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Jun. 30, 2017 |
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | $ 4,531.1 | $ 3,454.3 |
Softgel Technologies [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | 1,402 | 1,631.8 |
Biologics and Specialty Drug Delivery [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | 1,739.7 | 414.9 |
Oral Drug Delivery [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | 1,074.2 | 1,226.1 |
Clinical Supply Services [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | 613 | 596.2 |
Corporate and Eliminations [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | $ (297.8) | $ (414.7) |
Segment Information Depreciatio
Segment Information Depreciation and Amortization (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Segment Reporting Information [Line Items] | |||
Depreciation and Amortization | $ 190.1 | $ 146.5 | $ 140.6 |
Softgel Technologies [Member] | |||
Segment Reporting Information [Line Items] | |||
Depreciation and Amortization | 43.9 | 38.4 | 36.7 |
Biologics and Specialty Drug Delivery [Member] | |||
Segment Reporting Information [Line Items] | |||
Depreciation and Amortization | 54.7 | 25.2 | 24.2 |
Oral Drug Delivery [Member] | |||
Segment Reporting Information [Line Items] | |||
Depreciation and Amortization | 54.4 | 50.1 | 48.7 |
Clinical Supply Services [Member] | |||
Segment Reporting Information [Line Items] | |||
Depreciation and Amortization | 19.5 | 18.7 | 21.1 |
Corporate [Member] | |||
Segment Reporting Information [Line Items] | |||
Depreciation and Amortization | $ 17.6 | $ 14.1 | $ 9.9 |
Segment Information Capital Exp
Segment Information Capital Expenditures (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Segment Reporting Information [Line Items] | |||
Capital expenditures | $ 176.5 | $ 139.8 | $ 139.6 |
Softgel Technologies [Member] | |||
Segment Reporting Information [Line Items] | |||
Capital expenditures | 41.3 | 27.6 | 20.6 |
Biologics and Specialty Drug Delivery [Member] | |||
Segment Reporting Information [Line Items] | |||
Capital expenditures | 55.2 | 40.8 | 52.8 |
Oral Drug Delivery [Member] | |||
Segment Reporting Information [Line Items] | |||
Capital expenditures | 40.2 | 42.7 | 39.6 |
Clinical Supply Services [Member] | |||
Segment Reporting Information [Line Items] | |||
Capital expenditures | 11.5 | 7.2 | 5.1 |
Corporate [Member] | |||
Segment Reporting Information [Line Items] | |||
Capital expenditures | $ 28.3 | $ 21.5 | $ 21.5 |
Segment Information - Assets an
Segment Information - Assets and Revenues (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | ||
Segment Reporting Information [Line Items] | ||||||||||||
Net revenue | $ 685.3 | $ 627.9 | $ 606.3 | $ 543.9 | $ 616.9 | $ 532.6 | $ 483.7 | $ 442.2 | $ 2,463.4 | $ 2,075.4 | $ 1,848.1 | |
Property, Plant and Equipment, Net | [1] | 1,270.6 | 995.9 | 1,270.6 | 995.9 | |||||||
United States [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net revenue | 1,219.8 | 996.4 | 858.6 | |||||||||
Property, Plant and Equipment, Net | [1] | 849.9 | 588 | 849.9 | 588 | |||||||
Europe [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net revenue | 897.8 | 797.4 | 733.2 | |||||||||
Property, Plant and Equipment, Net | [1] | 304.9 | 281.6 | 304.9 | 281.6 | |||||||
Rest of World [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net revenue | 415.3 | 345 | 313.5 | |||||||||
Property, Plant and Equipment, Net | [1] | 115.8 | 126.3 | 115.8 | 126.3 | |||||||
Consolidation, Eliminations [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net revenue | (69.5) | (63.4) | $ (57.2) | |||||||||
Property, Plant and Equipment, Net | [1] | $ 0 | $ 0 | $ 0 | $ 0 | |||||||
[1] | Long-lived assets include property and equipment, net of accumulated depreciation. |
Supplemental Balance Sheet In97
Supplemental Balance Sheet Information - Work-in-Process and Finished Goods Inventories Include Raw Materials, Labor and Overhead (Detail) - USD ($) $ in Millions | Jun. 30, 2018 | Jun. 30, 2017 |
Balance Sheet Related Disclosures [Abstract] | ||
Raw materials and supplies | $ 137.1 | $ 107.5 |
Work-in-process | 42.3 | 42.8 |
Finished goods | 48.3 | 56.7 |
Total inventory, gross | 227.7 | 207 |
Inventory reserve | (18.6) | (22.1) |
Inventories | $ 209.1 | $ 184.9 |
Supplemental Balance Sheet In98
Supplemental Balance Sheet Information - Prepaid and Other Assets (Detail) - USD ($) $ in Millions | Jun. 30, 2018 | Jun. 30, 2017 |
Balance Sheet Related Disclosures [Abstract] | ||
Prepaid Expense, Current | $ 19.2 | $ 12.3 |
Spare Parts | 11.1 | 11.8 |
Prepaid Taxes | 7.2 | 11.5 |
Value Added Tax Receivable | 12.5 | 16 |
Available-for-sale Securities, Current | 0 | 18.6 |
Other current assets | 15.2 | 27.6 |
Prepaid Expense and Other Assets, Current | $ 65.2 | $ 97.8 |
Supplemental Balance Sheet In99
Supplemental Balance Sheet Information - Property and Equipment (Detail) - USD ($) $ in Millions | Jun. 30, 2018 | Jun. 30, 2017 | |
Balance Sheet Related Disclosures [Abstract] | |||
Land, buildings and improvements | $ 928.1 | $ 735.2 | |
Machinery, equipment and capitalized software | 988.1 | 825 | |
Furniture and fixtures | 14.9 | 10.1 | |
Construction in progress | 166.8 | 137.4 | |
Property and equipment, at cost | 2,097.9 | 1,707.7 | |
Accumulated depreciation | (827.3) | (711.8) | |
Property, plant, and equipment, net | [1] | $ 1,270.6 | $ 995.9 |
[1] | Long-lived assets include property and equipment, net of accumulated depreciation. |
Supplemental Balance Sheet I100
Supplemental Balance Sheet Information - Other Assets Non Current (Detail) - USD ($) $ in Millions | Jun. 30, 2018 | Jun. 30, 2017 |
Balance Sheet Related Disclosures [Abstract] | ||
Deferred Compensation Plan Assets | $ 20.1 | $ 15.4 |
Pension Asset | 17.9 | 0 |
Deferred long term debt financing costs | 1.1 | 1.2 |
Other Assets, Miscellaneous, Noncurrent | 6 | 8.2 |
Other Assets, Noncurrent | $ 45.2 | $ 27.5 |
Supplemental Balance Sheet I101
Supplemental Balance Sheet Information - Other Accrued Liabilities (Detail) - USD ($) $ in Millions | Jun. 30, 2018 | Jun. 30, 2017 |
Balance Sheet Related Disclosures [Abstract] | ||
Accrued employee-related expenses | $ 104.3 | $ 96.4 |
Restructuring accrual | 9.4 | 5.9 |
Interest Payable, Current | 16.5 | 0.9 |
Deferred revenue and fees | 100.9 | 84.9 |
Accrued income tax | 25.9 | 24.7 |
Other accrued liabilities and expenses | 55.9 | 68.4 |
Other accrued liabilities | $ 312.9 | $ 281.2 |
Supplemental Balance Sheet I102
Supplemental Balance Sheet Information- Allowance for Doubtful Accounts (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Trade receivables allowance for doubtful accounts | |||
Beginning balance | $ 4 | $ 3.9 | $ 6.6 |
Provision for Doubtful Accounts | 1.7 | 1 | (0.5) |
Allowance for Doubtful Accounts Receivable, Write-offs and Recoveries, net | 0.3 | (0.9) | (1.8) |
Impact of foreign exchange | 0 | 0 | (0.4) |
Closing balance | $ 6 | $ 4 | $ 3.9 |
Quarterly Financial Data - U103
Quarterly Financial Data - Unaudited (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Net revenue | $ 685.3 | $ 627.9 | $ 606.3 | $ 543.9 | $ 616.9 | $ 532.6 | $ 483.7 | $ 442.2 | $ 2,463.4 | $ 2,075.4 | $ 1,848.1 |
Gross Profit | 233.4 | 191.7 | 187.4 | 140.1 | 215.2 | 167.4 | 147.9 | 124.1 | 752.6 | 654.6 | 587.6 |
Net Income (Loss) Attributable to Parent | $ 82.7 | $ 19 | $ (21.9) | $ 3.8 | $ 61.8 | $ 26 | $ 17.4 | $ 4.6 | $ 83.6 | $ 109.8 | $ 111.5 |
Earnings Per Share, Basic | $ 0.62 | $ 0.14 | $ (0.16) | $ 0.03 | $ 0.49 | $ 0.21 | $ 0.14 | $ 0.04 | $ 0.64 | $ 0.88 | $ 0.89 |
Earnings Per Share, Diluted | $ 0.61 | $ 0.14 | $ (0.16) | $ 0.03 | $ 0.49 | $ 0.21 | $ 0.14 | $ 0.04 | $ 0.63 | $ 0.87 | $ 0.89 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 1 Months Ended | 2 Months Ended | 3 Months Ended | 12 Months Ended | |||
Oct. 23, 2017 | Aug. 28, 2018 | Sep. 30, 2014 | Jun. 30, 2018 | Jul. 27, 2018 | Jun. 30, 2017 | Jul. 31, 2014 | |
Subsequent Event [Line Items] | |||||||
Business Acquisition, Name of Acquired Entity | Cook Pharmica LLC | ||||||
Payments to Acquire Businesses, Gross | $ 950 | $ 950 | |||||
Stock Issued During Period, Shares, New Issues | 48.9 | 7.4 | |||||
Common stock, par value (usd per share) | $ 0.01 | $ 0.01 | |||||
Share Price | $ 20.50 | ||||||
Subsequent Event [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Business Acquisition, Name of Acquired Entity | Juniper Pharmaceuticals, Inc. | ||||||
Payments to Acquire Businesses, Gross | $ 140 | ||||||
Stock Issued During Period, Shares, New Issues | 11.4 | ||||||
Common stock, par value (usd per share) | $ 0.01 | ||||||
Share Price | $ 40.24 | ||||||
Proceeds from Issuance of Common Stock | $ 445.2 |