Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Sep. 30, 2018 | Nov. 02, 2018 | |
Document Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2018 | |
Document Fiscal Year Focus | 2,019 | |
Document Fiscal Period Focus | Q1 | |
Entity Registrant Name | Catalent, Inc. | |
Entity Central Index Key | 1,596,783 | |
Current Fiscal Year End Date | --06-30 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Common Stock, Shares Outstanding (shares) | 145,371,888 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Millions | 3 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | ||
Income Statement [Abstract] | |||
Net revenue | $ 551.8 | $ 543.9 | |
Cost of sales | 403.3 | 403.8 | |
Gross margin | 148.5 | 140.1 | |
Selling, general, and administrative expenses | 115.5 | 107.5 | |
Impairment charges and (gain)/loss on sale of assets | 2.9 | 0 | |
Restructuring and other | 9.7 | 1.2 | |
Operating earnings | 20.4 | 31.4 | |
Interest expense, net | 28.1 | 24.3 | |
Other expense/(income), net | [1] | 5.7 | 5.2 |
Earnings/(loss) from operations, before income taxes | 1.9 | ||
Income tax expense/(benefit) | 1 | (1.9) | |
Net earnings/(loss) | $ (14.4) | $ 3.8 | |
Earnings Per Share, Basic | $ (0.10) | $ 0.03 | |
Earnings Per Share, Diluted | $ (0.10) | $ 0.03 | |
[1] | Amounts for the three months ended September 30, 2018 include a write-off of $4.2 million of previously capitalized financing charges related to the Company's U.S. dollar term loan under its senior secured credit facility and for the three months ended September 30, 2017 were primarily driven by foreign currency remeasurement losses. Refer to Note 8, Other Expense/(Income). |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income / (Loss) - USD ($) $ in Millions | 3 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Other comprehensive income/(loss), net of tax | ||
Net earnings/(loss) | $ (14.4) | $ 3.8 |
Foreign currency translation adjustments | (8.8) | 38.1 |
Pension and other post-retirement adjustments | 0.4 | 0.4 |
Available for sale investments | 0 | (3.4) |
Other comprehensive income/(loss), net of tax | (8.4) | 35.1 |
Comprehensive income/(loss) | $ (22.8) | $ 38.9 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Sep. 30, 2018 | Jun. 30, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 266.1 | $ 410.2 |
Trade receivables, net | 503.3 | 555.8 |
Inventories | 235.8 | 209.1 |
Prepaid expenses and other | 78.2 | 65.2 |
Total current assets | 1,083.4 | 1,240.3 |
Property, plant, and equipment, net | 1,288.2 | 1,270.6 |
Other assets: | ||
Goodwill | 1,435 | 1,397.2 |
Other intangibles, net | 611.9 | 544.9 |
Deferred income taxes | 33.8 | 32.9 |
Other Assets, Noncurrent | 47.5 | 45.2 |
Total assets | 4,499.8 | 4,531.1 |
Liabilities and shareholder's equity | ||
Current portion of long-term obligations and other short-term borrowings | 73.4 | 71.9 |
Accounts payable | 180.1 | 192.1 |
Other accrued liabilities | 274 | 312.9 |
Total current liabilities | 527.5 | 576.9 |
Long-term obligations, less current portion | 2,205.7 | 2,649.4 |
Pension liability | 132.1 | 131.6 |
Deferred income taxes | 51.1 | 32.5 |
Other liabilities | 54 | 54 |
Common Stock, Value, Outstanding | 1.4 | 1.3 |
Preferred Stock, Value, Outstanding | 0 | 0 |
Additional paid in capital | 2,733.6 | 2,283.3 |
Accumulated deficit | (871.4) | (872.1) |
Accumulated other comprehensive income/(loss) | (334.2) | (325.8) |
Total shareholders' equity | 1,529.4 | 1,086.7 |
Total liabilities and shareholders' equity | $ 4,499.8 | $ 4,531.1 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2018 | Jun. 30, 2018 |
Statement of Financial Position [Abstract] | ||
Common Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 |
Common Stock, Shares Authorized | 1,000,000,000 | 1,000,000,000 |
Common stock, shares issued (shares) | 145,221,009 | 133,423,628 |
Common Stock, Shares, Outstanding | 145,221,009 | 133,423,628 |
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 |
Preferred Stock, Shares Outstanding | 0 | 0 |
Consolidated Statement of Chang
Consolidated Statement of Changes in Shareholder's Equity - 3 months ended Sep. 30, 2018 - USD ($) | Total | Common Stock | Additional Paid-in Capital | Accumulated Deficit | Accumulated Other Comprehensive Income/(Loss) |
Beginning Balance at Jun. 30, 2018 | $ 1,086,700,000 | $ 1,300,000 | $ 2,283,300,000 | $ (872,100,000) | $ (325,800,000) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Cumulative effect of change in accounting for ASC 606, net of tax | 15,100,000 | 15,100,000 | |||
Equity offering, sale of common stock | 445,500,000 | 100,000 | 445,400,000 | ||
Share issuances related to stock-based compensation | 0 | 0 | |||
Stock-based compensation | 10,000,000 | 10,000,000 | |||
Cash paid, in lieu of equity, for tax withholding | (5,100,000) | (5,100,000) | |||
Net earnings/(loss) | (14,400,000) | (14,400,000) | |||
Other comprehensive income/(loss), net of tax | (8,400,000) | (8,400,000) | |||
Ending Balance at Sep. 30, 2018 | $ 1,529,400,000 | $ 1,400,000 | $ 2,733,600,000 | $ (871,400,000) | $ (334,200,000) |
Consolidated Statement of Cha_2
Consolidated Statement of Changes in Shareholder's Equity Consolidated Statement of Changes in Shareholders' Equity (Parenthetical) | 3 Months Ended |
Sep. 30, 2018shares | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |
Beginning Balance - Common Stock Outstanding (shares) | 133,423,628 |
Ending Balance - Common Stock Outstanding (shares) | 145,221,009 |
Common Stock | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |
Beginning Balance - Common Stock Outstanding (shares) | 133,423,628 |
Equity offering, sale of common stock | 11,431,410 |
Share issuances related to stock-based compensation | 365,970 |
Ending Balance - Common Stock Outstanding (shares) | 145,221,009 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 3 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net earnings/(loss) | $ (14.4) | $ 3.8 |
Adjustments to reconcile earnings/(loss) from operations to net cash from operations: | ||
Depreciation and amortization | 52.9 | 39 |
Non-cash foreign currency transaction (gain)/loss, net | 2 | 8.3 |
Amortization and write-off of debt financing costs | 5.2 | 1.3 |
Asset impairments charges and (gain)/loss on sale of assets | 2.9 | 0 |
Stock-based compensation | 10 | 7 |
Provision/(benefit) for deferred income taxes | (1.2) | 1.8 |
Provision for bad debts and inventory | 2.8 | 4.9 |
Change in operating assets and liabilities: | ||
Decrease/(increase) in trade receivables | 73.7 | 87 |
Decrease/(increase) in inventories | (21) | (7.3) |
Increase/(decrease) in accounts payable | (18.3) | 2 |
Other assets/accrued liabilities, net — current and non-current | (55.8) | (60.5) |
Net cash provided by operating activities | 41.2 | 83.7 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Acquisition of property and equipment and other productive assets | (38.3) | (42.7) |
Payment for acquisitions, net of cash acquired | (127.5) | 0 |
Net cash (used in) investing activities | (165.8) | (42.7) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Net change in other borrowings | (4.5) | (1.7) |
Payments related to long-term obligations | (454.7) | (4.7) |
Proceeds from sale of common stock, net | 445.5 | 277.8 |
Cash paid, in lieu of equity, for tax withholding | (5.1) | (8.4) |
Net cash (used in)/provided by financing activities | (18.8) | 263 |
Effect of foreign currency exchange on cash | (0.7) | 9.1 |
NET INCREASE/(DECREASE) IN CASH AND EQUIVALENTS | (144.1) | 313.1 |
CASH AND EQUIVALENTS AT BEGINNING OF PERIOD | 410.2 | 288.3 |
CASH AND EQUIVALENTS AT END OF PERIOD | 266.1 | 601.4 |
SUPPLEMENTARY CASH FLOW INFORMATION: | ||
Interest paid | 29.5 | 16.7 |
Income taxes paid, net | $ 14.8 | $ 7.9 |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 3 Months Ended |
Sep. 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 comprised of the financial results of Operating Company and its subsidiaries on a consolidated basis. Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States ("GAAP") for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. Operating results for the three months ended September 30, 2018 are not necessarily indicative of the results that may be expected for the year ending June 30, 2019 . The consolidated balance sheet at June 30, 2018 has been derived from the audited consolidated financial statements at that date but does not include all of the information and footnotes required by GAAP for complete financial statements. For further information on the Company's accounting policies and footnotes, refer to the consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the year ended June 30, 2018 filed with the Securities and Exchange Commission (the "SEC"). 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 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 Accounting Standards Codification ("ASC") 280, Segment Reporting . 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 these 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. Beginning on July 1, 2018, the Company accounts for its Argentine operations as highly inflationary. Research and Development Costs The Company expenses research and development costs as incurred. Costs incurred in connection with the development of new offerings and manufacturing process improvements are recorded within selling, general, and administrative expenses. Such research and development costs included in selling, general, and administrative expenses amounted to $0.5 million and $1.8 million for the three months ended September 30, 2018 and 2017, respectively. Costs incurred in connection with research and development services the Company provides to customers and services performed in support of the commercial manufacturing process for customers are recorded within cost of sales. Such research and development costs included in cost of sales amounted to $11.3 million and $10.0 million for the three months ended September 30, 2018 and 2017, respectively. Recent Financial Accounting Standards Recently Adopted Accounting Standards In May 2014, the Financial Accounting Standard Board ("FASB") issued Accounting Standards Update ("ASU") 2014-09, Revenue from Contracts with Customers , which was codified as Accounting Standards Codification 606 ("ASC 606") and superseded nearly all existing revenue-recognition guidance. The 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 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 or as each performance obligation is satisfied. The guidance 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. The guidance is effective for the Company in fiscal 2019. The Company has adopted the guidance as of July 1, 2018 using the modified retrospective approach applied to contracts that were not completed as of that date. The Company recorded a cumulative effect adjustment to the fiscal 2019 opening balance of its accumulated deficit upon adoption of this guidance, which decreased beginning accumulated deficit by $15.1 million . The following table provides the impact of adopting the guidance on the Company’s financial statements: Consolidated Statement of Operations - Three months ended September 30, 2018 (Dollars in millions) As Reported Effects of Change Amount without Adoption of ASC 606 Net revenue $ 551.8 $ 14.2 $ 566.0 Cost of sales 403.3 11.7 415.0 Gross margin 148.5 2.5 151.0 Earnings/(loss) from operations, before income taxes (13.4 ) 2.5 (10.9 ) Income tax expense 1.0 0.2 1.2 Net earnings/(loss) $ (14.4 ) $ 2.3 $ (12.1 ) The impact of ASC 606 on the Company's consolidated balance sheet is immaterial. The adoption of ASC 606 resulted in three primary changes in the first quarter as compared to the previous revenue recognition guidance: (a) revenue from commercial product supply is recognized following successful completion of the required quality assurance process where it was previously recognized upon shipment of the product to the customer; (b) earlier recognition of revenue from certain commercial supply contract cancellations is recognized as variable consideration as the Company’s performance obligations are satisfied rather than only upon agreement of the amount with the customer; and (c) revenue from sourcing comparator drug product for clinical supply services is recorded net of the cost of procuring it rather than at full value with a corresponding expense. Refer to Note 2 for the Company's revenue recognition policy. 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. The Company adopted this guidance as of July 1, 2018, on a retrospective basis, which had an effect on the consolidated statement of operations for the three months period ended September 30, 2017. The following table summarizes the Company's As Previously Reported and As Adjusted changes to the consolidated statement of operations for the three months ended September 30, 2017: Three Months Ended September 30, 2017 (Dollars in millions) As Previously Reported As Adjusted Selling, general, and administrative expenses $ 107.0 $ 107.5 Operating earnings 31.9 31.4 Other expense/(income), net 5.7 5.2 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 by issuers. The ASU is effective for fiscal years beginning after December 15, 2018 and interim periods within those years. Early adoption is permitted. The Company early adopted this guidance as of July 1, 2018 on a prospective basis. The adoption of this guidance was not material to the Company's consolidated financial statements. 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 is effective for annual periods beginning after December 15, 2017 and interim periods within those annual periods. The Company adopted this guidance prospectively at the beginning of fiscal 2019. The adoption of this guidance was not 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 is effective for public reporting entities in fiscal years beginning after December 15, 2017 and interim periods within those fiscal years. The Company adopted this guidance prospectively at the beginning of fiscal 2019. The adoption of this guidance was not material to the Company's consolidated financial statements. In January 2016, the FASB issued ASU 2016-01, Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities , which changes the accounting for equity investments and financial liabilities under the fair value option, and presentation and disclosure requirements for financial instruments. The ASU requires equity investments with readily determinable fair values to be measured at fair value and to recognize change in fair value in net earnings. The ASU is not applicable to equity investments accounted for under the equity method of accounting or those that result in consolidation of the investee. It is effective for public reporting entities in fiscal years beginning after December 15, 2017 and interim periods within those fiscal years. The Company adopted this guidance at the beginning of fiscal 2019. The adoption of this guidance was not material to the Company's consolidated financial statements. New Accounting Standards Not Adopted as of September 30, 2018 In August 2018, the FASB issued ASU 2018-15, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract , which aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The ASU will be effective for fiscal years beginning after December 15, 2019 and interim periods within those fiscal years and allows for either a retrospective or prospective application. The Company is currently evaluating the impact of adopting this guidance on its consolidated financial statements. 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 June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , which introduces a new accounting model Credit Expected Credit Losses model ("CECL"). CECL requires earlier recognition of credit losses, while also providing additional transparency about credit risk. The CECL model utilizes a lifetime expected credit loss measurement objective for the recognition of credit losses for receivables at the time the financial asset is originated or acquired. The expected credit losses are adjusted each period for changes in expected lifetime credit losses. This model replaces the multiple existing impairment models in current GAAP, which generally require that a loss be incurred before it is recognized. The new standard will also apply to receivables arising from revenue transactions such as contract assets and accounts receivables. The ASU will be effective for fiscal years beginning after December 15, 2019. 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 ASC 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 on its consolidated financial statements. |
Revenue Recognition (Notes)
Revenue Recognition (Notes) | 3 Months Ended |
Sep. 30, 2018 | |
Revenue Recognition [Abstract] | |
Revenue from Contract with Customer [Policy Text Block] | REVENUE RECOGNITION The Company recognizes revenue in accordance with ASC 606. The Company generally earns its revenue by supplying goods or providing services under contracts with its customers in three primary revenue streams: manufacturing and commercial product supply, development services, and clinical supply services. The Company measures the revenue from customers based on the consideration specified in its contracts, excluding any sales incentive or amount collected on behalf of a third party. The company generally expenses sales commissions as incurred because either the amortization period is one year or less, or the balance with an amortization period greater than one year is not material. The following table allocates revenue for the three months ended September 30, 2018 by type of activity and reporting segment (in millions): Softgel Technologies Biologics & Specialty Drug Delivery Oral Drug Delivery Clinical Supply Services Total Manufacturing & commercial product supply $ 184.4 $ 73.8 $ 81.7 $ — $ 339.9 Development services 14.8 80.8 48.4 — 144.0 Clinical supply services — — — 77.7 77.7 Total $ 199.2 $ 154.6 $ 130.1 $ 77.7 $ 561.6 Inter-segment revenue elimination (9.8 ) Combined net revenue $ 551.8 The following table allocates revenue by the location where the goods were made or the service performed: (Dollars in millions) Three months ended September 30, 2018 United States $ 264.4 Europe 196.4 International Other 107.6 Elimination of revenue attributable to multiple locations (16.6 ) Total $ 551.8 Manufacturing & Commercial Product Supply Revenue Manufacturing and commercial product supply revenue consists of revenue earned by manufacturing products supplied to customers under long-term commercial supply arrangements. The Company recognizes revenue for manufacturing and supplying commercial products as control is transferred to the customer, which is measured based on product that has successfully completed contractually required quality assurance process. Revenue is measured based on the amount of consideration the Company expects to receive in exchange for providing these products and services. The contractual performance obligation generally includes manufacture and the completion of product quality release testing procedures specified in the contract. These activities are interdependent and thus are considered to be a single combined performance obligation. Payment is typically due 30 to 90 days after the goods are shipped to the customer based on the payment terms set forth in the applicable customer agreement. Development Services Revenue Development services contracts generally take the form of short-term, fee-for-service arrangements. Performance obligations vary, but frequently include (1) the delivery of a formulation report, analytical and stability testing report, or other report on product- or molecule-based studies or (2) the manufacture of products under development or otherwise not intended for commercial sale. The transaction prices for these arrangements include fixed consideration of the amounts stated in the contracts for each promised good or service, which are generally considered to be separate performance obligations. The Company recognizes revenue when or as control of each individual performance obligation is transferred to the customer and exercises judgment in determining the timing of revenue recognition by analyzing the point in time or period over which the customer has the ability to direct the use of and obtain substantially all of the remaining benefits of the arrangement. Control generally transfers to the customer when services have been completed or the customer has accepted the product or service deliverable and the Company has right to payment based on the terms of the agreement. In certain arrangements, the Company recognizes revenue over time as the Company satisfies performance obligations. Satisfaction of the performance obligations is measured using an output method measure of progress based on the deliverables provided by or effort expended by the Company. In other arrangements, revenue is recognized when the customer has taken legal title to or accepted the product or service deliverable and the Company has a right to payment based on the terms of the arrangement. Development services contracts may also include certain success-based milestone payments for completed performance obligations, such as regulatory approval and product validation prior to the commencement of commercial supply. Revenue associated with developmental milestones is considered variable consideration and is typically recognized when the success-based milestone is achieved, and no significant revenue reversal is anticipated. The Company allocates consideration to each performance obligation based on the relative selling price. Payment is typically due 30 to 90 days following the completion of services provided to the customer based on the payment terms set forth in the applicable customer agreement. Certain development service arrangements require a portion of the contract consideration to be received in advance at the commencement of the contract and is initially recorded as a contract liability. Clinical Supply Services Revenue Clinical supply services contracts generally take the form of short-term, fee-for-service arrangements with duration of less than one year. Performance obligations for clinical supply services revenue typically include a combination of the following services: the manufacturing, packaging, storage, distribution, destruction, and inventory management of customer clinical trials materials. Performance obligations can also include the sourcing of comparator drug products on behalf of customers to be used in clinical trials to compare performance with the drug under clinical investigation. In certain arrangements, the Company recognizes revenue over time when the Company satisfies performance obligations. Satisfaction of the performance obligations is measured using an output method measure of progress based on deliverables provided by or effort expended by the Company. In other arrangements, revenue is recognized when the customer has taken legal title or accepted the product or service deliverable and the Company has right to payment based on the terms of the arrangement. Payment is typically due 30 to 90 days following the completion of services provided to the customer based on the payment terms set forth in the applicable customer agreement. The Company records revenue for comparator sourcing arrangements on a net basis because it is acting as an agent that does not control the product or service before it is transferred to the customer. Payment for comparator sourcing activity is typically received in advance at the commencement of the contract and is initially recorded as a contract liability. Contract Liabilities Contract liabilities relate to cash consideration that the Company receives in advance of satisfying the related performance obligations. Changes in the contractual liabilities balance during the three months ended September 30, 2018 are as follows: (Dollars in millions) Contract liability Balance at June 30, 2018 $ 100.9 Balance at September 30, 2018 $ 105.7 Revenue recognized in the period from: Amounts included in contracts liability at the beginning of the period $ 41.0 Remaining Performance Obligations For the Softgel Technologies, Biologics and Specialty Drug Delivery, and Oral Drug Delivery segments, remaining performance obligations represent firm orders for manufacturing and commercial product supply, including minimum volume commitments and future development services, for which there are incomplete performance obligations. For the Clinical Supply Services segment, remaining performance obligations represent estimated future service revenues from work not yet completed under signed contracts. The remaining performance obligations as of September 30, 2018 were $1,115.9 million , including approximately $301.5 million related to our Clinical Supply Services segment. We expect to recognize approximately 72% of the remaining performance obligations in existence as of September 30, 2018 over the next nine months, with the remaining recognized thereafter. |
Business Combinations (Notes)
Business Combinations (Notes) | 3 Months Ended |
Sep. 30, 2018 | |
Business Combinations [Abstract] | |
Business Combination Disclosure [Text Block] | BUSINESS COMBINATIONS Juniper Pharmaceuticals Acquisition On August 14, 2018, Operating Company acquired Juniper Pharmaceuticals, Inc. , a Delaware corporation ("Juniper") through a tender offer and back-end merger, pursuant to the terms of an agreement and plan of merger (the "Juniper Merger Agreement"), and Juniper became a wholly owned subsidiary of Operating Company. Under the terms of the Juniper 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. Juniper has expertise in formulation development and supply and augments the Company's pre-existing portfolio of solid-state screening, pre-formulation, formulation, analytical, and bioavailability enhancement solutions, including the development of drug products produced using spray-dried dispersion, with integrated development, analytical, and clinical manufacturing. Juniper also owns the ex-U.S. rights to and supplies for sale to its licensee of such rights CRINONE ® , a reproductive therapy. The primary operations of the acquired business are located in owned facilities aggregating 38,000 square feet in Nottingham, U.K. and is now included in the Oral Drug Delivery segment. Results of this segment include the results of Juniper for the period since the acquisition. The aggregate purchase consideration, net of cash acquired, is $127.5 million , which was funded by cash on hand. As a result of the preliminary fair value allocations, the Company recognized intangible assets of $75.0 million and $11.0 million of product relationships and customer relationships, respectively. The remainder of the preliminary fair value was allocated to tangible assets acquired and goodwill. The fair value allocation is expected to be completed upon finalization of an independent appraisal over the next several months, but no later than one year from the acquisition date. Catalent Indiana Acquisition On October 23, 2017, the Company acquired 100% of the equity interest in Cook Pharmica LLC (now doing business as Catalent Indiana, LLC, "Catalent Indiana") for an aggregate nominal purchase price of $950 million , subject to adjustment. 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. |
Goodwill
Goodwill | 3 Months Ended |
Sep. 30, 2018 | |
Goodwill Disclosure [Abstract] | |
Goodwill | GOODWILL The following table summarizes the changes between June 30, 2018 and September 30, 2018 in the carrying amount of goodwill in total and by reporting segment: (Dollars in millions) Softgel Technologies Biologics and Specialty Drug Delivery Oral Drug Delivery Clinical Supply Services Total Balance at June 30, 2018 $ 415.2 $ 505.7 $ 319.9 $ 156.4 $ 1,397.2 Additions — — 40.3 — 40.3 Foreign currency translation adjustments (1.7 ) 0.4 (0.5 ) (0.7 ) (2.5 ) Balance at September 30, 2018 $ 413.5 $ 506.1 $ 359.7 $ 155.7 $ 1,435.0 The increase in goodwill in the Oral Drug Delivery reporting segment relates to the Juniper acquisition. The Company recorded no impairment charge in the current period. |
Definite Lived Long-Lived Asset
Definite Lived Long-Lived Assets | 3 Months Ended |
Sep. 30, 2018 | |
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 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 intangibles, net as of September 30, 2018 and June 30, 2018 are as follows: (Dollars in millions) Weighted Average Life Gross Carrying Value Accumulated Amortization Net Carrying Value September 30, 2018 Amortized intangibles: Core technology 18 years $ 170.5 $ (87.6 ) $ 82.9 Customer relationships 14 years 596.9 (150.7 ) 446.2 Product relationships 11 years 285.2 (202.4 ) 82.8 Total intangible assets $ 1,052.6 $ (440.7 ) $ 611.9 The increases in customer relationships and product relationships as of September 30, 2018 are associated with the acquisition of Juniper in August 2018. (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 Amortization expense was $18.2 million and $11.4 million for the three months ended September 30, 2018 and 2017, respectively. Future amortization expense for the next five fiscal years is estimated to be: (Dollars in millions) Remainder 2020 2021 2022 2023 2024 Amortization expense $ 52.6 $ 57.8 $ 57.8 $ 57.8 $ 57.8 $ 57.7 |
Long-Term Obligations and Other
Long-Term Obligations and Other Short-Term Borrowings | 3 Months Ended |
Sep. 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 September 30, 2018 and June 30, 2018 : (Dollars in millions) Maturity as of September 30, 2018 September 30, 2018 June 30, 2018 Senior Secured Credit Facilities Term loan facility U.S. dollar-denominated May 2024 $ 779.3 $ 1,228.4 Term loan facility euro-denominated May 2024 361.1 358.9 Euro-denominated 4.75% Senior Notes due 2024 December 2024 442.3 438.4 U.S. dollar-denominated 4.875% Senior Notes due 2026 January 2026 444.0 443.8 Deferred purchase consideration October 2021 190.4 188.9 $200 million revolving credit facility May 2022 — — Capital lease obligations 2020 to 2032 60.1 60.8 Other obligations 2018 to 2019 1.9 2.1 Total 2,279.1 2,721.3 Less: Current portion of long-term obligations and other short-term 73.4 71.9 Long-term obligations, less current portion $ 2,205.7 $ 2,649.4 Senior Secured Credit Facilities and Third Amendment On October 18, 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. From the Third Amendment, the 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% , and the 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% . The applicable rate for the revolving loans was initially set at LIBOR plus 2.25% , 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. On July 27, 2018, the Company completed an underwritten public equity offering (the "2018 Equity Offering") and used the net proceeds coupled with cash on hand to repay $450.0 million of the outstanding borrowings under its U.S. dollar-denominated term loans on July 31, 2018. Euro-denominated 4.75% Senior Notes due 2024 On December 9, 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 United States to qualified institutional buyers in reliance on Rule 144A under the Securities Act of 1933, as amended (the "Securities Act") and outside the United States only to non-U.S. investors pursuant to Regulation S under the Securities Act. The Euro 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. U.S. Dollar-denominated 4.875% Senior Notes due 2026 On October 18, 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. Deferred Purchase Consideration In connection with the acquisition of Catalent Indiana in October 2017, $200.0 million of the $950.0 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 initially recorded at fair value and included a component of imputed interest. Bridge Loan Facility On September 18, 2017, contemporaneous with the Company entering into the agreement to acquire Catalent Indiana, Operating Company entered into a debt commitment letter with Morgan Stanley Senior Funding, Inc., JP Morgan Chase Bank, N.A., Royal Bank of Canada, RBC Capital Markets, Bank of America, N.A., and Merrill Lynch, Pierce, Fenner & Smith Incorporated, 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 it to fund the acquisition and the Company expensed the $6.1 million in the second quarter of fiscal 2018 as part of other income and expense and the facility was closed. 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 September 30, 2018 , Operating Company was in compliance with all material covenants under 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 or Puerto Rico subsidiaries 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 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 September 30, 2018 , Operating Company was in compliance with all material covenants under the Indentures. Fair Value of Debt Instruments The estimated fair value of the senior secured credit facility, 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 estimated fair value of the Euro and USD Notes, a Level 1 fair-value estimate, is based on the quoted market prices of the instruments. The carrying amounts and the estimated fair values of financial instruments as of September 30, 2018 and June 30, 2018 are as follows: September 30, 2018 June 30, 2018 (Dollars in millions) Fair Value Measurement Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value Euro-denominated 4.75% Senior Notes Level 1 $ 442.3 $ 466.1 $ 438.4 $ 457.6 U.S. Dollar-denominated 4.875% Senior Notes Level 1 444.0 425.1 443.8 428.3 Senior Secured Credit Facilities & Other Level 2 1,392.8 1,361.0 1,839.1 1,768.0 Total $ 2,279.1 $ 2,252.2 $ 2,721.3 $ 2,653.9 |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Sep. 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 three months ended September 30, 2018 and 2017 , respectively, are as follows (in millions, except share and per share data): Three Months Ended 2018 2017 Net earnings/(loss) $ (14.4 ) $ 3.8 Weighted average shares outstanding 142,149,315 125,713,246 Dilutive securities issuable-stock plans — 2,071,275 Total weighted average diluted shares outstanding 142,149,315 127,784,521 Earnings/(loss) per share: Basic $ (0.10 ) $ 0.03 Diluted $ (0.10 ) $ 0.03 The computation of diluted earnings per share for the three months ended September 30, 2018 excludes the maximum effect of the potential common shares issuable under the employee stock option plan of approximately 2.4 million shares, and excludes restricted share awards of 2.3 million share, because the Company had a net loss for the period and the effect would therefore be anti-dilutive. The computation of diluted earnings per share for the three months ended September 30, 2017 excludes the effect of 0.3 million shares potentially issuable pursuant to awards granted under the 2007 Stock Incentive Plan, 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 computation of diluted earnings per share for the three months ended September 30, 2017 excludes the effect of shares potentially issuable under employee-held stock options and restricted stock units of approximately 0.5 million because they are anti-dilutive. |
Other Income and Expense Other
Other Income and Expense Other Income / Expense | 3 Months Ended |
Sep. 30, 2018 | |
Other Income and Expenses [Abstract] | |
Other Income and Other Expense Disclosure [Text Block] | OTHER EXPENSE/(INCOME), NET The components of other expense/(income), net for the three months ended September 30, 2018 and 2017 are as follows: Three Months Ended (Dollars in millions) 2018 2017 Other expense/(income), net Debt refinancing costs (1) $ 4.2 $ — Foreign currency (gains) and losses (2) 1.7 5.7 Other (0.2 ) (0.5 ) Total other expense/(income), net $ 5.7 $ 5.2 (1) The expense in the three months ended September 30, 2018 includes a write-off of $4.2 million of previously capitalized financing charges related to the Company's U.S. dollar term loan under its senior secured credit facility. (2) Foreign currency remeasurement (gains) and losses include both cash and non-cash transactions. |
Restructuring and Other Restruc
Restructuring and Other Restructuring and Other Costs (Notes) | 3 Months Ended |
Sep. 30, 2018 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Activities Disclosure [Text Block] | RESTRUCTURING AND OTHER COSTS Restructuring Costs From time to time, 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 and duplicate payroll costs during transition periods. 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/(income) includes settlement charges, net of any insurance recoveries, related to the probable resolution of certain customer claims related to a previous temporary suspension of operations at a softgel manufacturing facility. The following table summarizes the significant costs recorded within restructuring and other costs: Three Months Ended (Dollars in millions) 2018 2017 Restructuring costs: Employee-related reorganization $ 9.7 $ 1.7 Facility exit and other costs — 0.6 Total restructuring costs $ 9.7 $ 2.3 Other - customer claims net of insurance recoveries — (1.1 ) Total restructuring and other costs $ 9.7 $ 1.2 |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 3 Months Ended |
Sep. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities | DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES The Company is exposed to fluctuations in the applicable exchange rate on its investments in foreign operations. While the Company does not actively hedge against changes in foreign currency, the Company has mitigated its exposure from its investments in its European operations by denominating a portion of its debt in euros. At September 30, 2018 , the Company had euro-denominated debt outstanding of $803.4 million that is designated and qualifies as a hedge of a net investment in foreign operations. For non-derivatives designated and qualifying as net investment hedges, the translation gains or losses are reported in accumulated other comprehensive income/(loss) as part of the cumulative translation adjustment. The non-hedge portions of the translation gains or losses are reported in the statement of operations. The following table includes net investment hedge activity during the three months ended September 30, 2018 and 2017 . Three Months Ended (Dollars in millions) 2018 2017 Unrealized foreign exchange gain/(loss) within other comprehensive income $ (4.2 ) $ (17.6 ) Unrealized foreign exchange gain/(loss) within statement of operations $ (2.5 ) $ (13.4 ) The net accumulated gain of the instrument designated as a hedge as of September 30, 2018 within other comprehensive income/(loss) was approximately $43.4 million . Amounts are reclassified out of accumulated other comprehensive income/(loss) into earnings when the entity to which the gains and losses relate is either sold or substantially liquidated. |
Income Taxes
Income Taxes | 3 Months Ended |
Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES 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 transition 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. While the impact of the mandatory one-time transition tax was recognized in fiscal 2018, the remaining provisions are effective for fiscal years after 2018. ASC 740, Income Taxes ("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. For the three months ended September 30, 2018 , there has been no change to the estimates recorded during fiscal 2018. The new GILTI tax is effective in fiscal 2019. Because of its complexity, the Company continues to evaluate this aspect of the 2017 Tax Act and the corresponding application of ASC 740. In accordance with ASC 740, the Company will consider 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 depends, 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, the related expected impact. 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 in each jurisdiction where it operates but also its intent and ability to modify its current structure. Applying the interim period rules of ASC 740, the impact of the GILTI tax on future U.S. inclusions is immaterial to the quarter. The Company is still evaluating its policy decision regarding whether to record deferred tax on GILTI to the extent such deferred tax is material in future periods. The Company continues to evaluate the potential impact of all other provisions, including but not limited to the BEAT, FDII, the limitation on the deductibility of interest expense, certain employee expense deductions, and the state tax impact of these provision of the 2017 Tax Act. To the extent these provisions are applicable, the impact of each of these provisions is not material to the Company's three month ended September 30, 2018 results. However, the Company will continue analyzing the effects of all these provisions as additional guidance is expected from the U.S. Treasury Department, the effects of the 2017 Tax Act will be finalized when all information available or no later than the end of the second quarter of fiscal 2019. Other Tax Matters The Company accounts for income taxes in accordance with ASC 740. Generally, fluctuations in the effective tax rate are primarily due to changes in U.S. and non-U.S. pretax income resulting from the Company’s business mix and changes in the tax impact of special items and other discrete tax items, which may have unique tax implications depending on the nature of the item. Such discrete items include, but are not limited to, changes in foreign statutory tax rates, the amortization of certain assets, and the tax impact of changes in its ASC 740 unrecognized tax benefit reserves. In the normal course of business, the Company is subject to examination by taxing authorities around the world, including such major jurisdictions as the United States, Germany, France, and the United Kingdom. The Company is no longer subject to examinations by the relevant tax authorities for years prior to fiscal year 2009. Under the terms of the 2007 purchase agreement by which the stockholders at that time acquired their interest in the Company, the Company is indemnified by its former owner for tax liabilities that may arise after the 2007 purchase that relate to tax periods prior to April 10, 2007. The indemnification agreement applies to, among other taxes, any and all federal, state, and international income-based taxes as well as related interest and penalties. As of September 30, 2018 and June 30, 2018 , approximately $0.7 million and $0.7 million , respectively, of unrecognized tax benefit are subject to indemnification by the Company's former owner. ASC 740 includes guidance on the accounting for uncertainty in income taxes recognized in the financial statements. This standard 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 resolution of any related appeal or litigation process, based on the technical merits. As of September 30, 2018 , the Company had a total of $2.2 million of unrecognized tax benefits, which is unchanged from the reserve as of June 30, 2018 . As of September 30, 2018 and June 30, 2018 , the Company had a total of $4.2 million and $4.1 million , respectively, of uncertain tax positions (including accrued interest and penalties). As of these dates, $2.2 million and $2.2 million , respectively, represent the amount of unrecognized tax benefits, which, if recognized, would favorably affect the effective income tax rate. The Company recognizes interest and penalties related to uncertain tax positions as a component of income tax expense. As of September 30, 2018 and June 30, 2018 , the Company has approximately $2.0 million and $2.0 million , respectively, of accrued interest and penalties related to uncertain tax positions. As of these dates, the portion of such interest and penalties subject to indemnification by its former owner is $1.6 million and $1.6 million , respectively. |
Employee Retirement Benefit Pla
Employee Retirement Benefit Plans | 3 Months Ended |
Sep. 30, 2018 | |
Defined Benefit Plan [Abstract] | |
Employee Retirement Benefit Plans | EMPLOYEE RETIREMENT BENEFIT PLANS Components of the Company’s net periodic benefit costs are as follows: Three Months Ended (Dollars in millions) 2018 2017 Components of net periodic benefit cost: Service cost $ 0.9 $ 0.9 Interest cost 1.9 1.8 Expected return on plan assets (2.6 ) (2.9 ) Amortization (1) 0.6 0.6 Net amount recognized $ 0.8 $ 0.4 (1) Amount represents the amortization of unrecognized actuarial gains/(losses). As previously disclosed, the Company notified the trustees of a multi-employer pension plan of its withdrawal from participation in such plan in fiscal 2012. The actuarial review process administered by the plan trustees ended in fiscal 2015. The liability reported reflects the present value of the Company's expected future long-term obligations. The estimated discounted value of the projected contributions related to such plans was $39.0 million and $39.0 million as of September 30, 2018 and June 30, 2018 , respectively, and is included within pension liability on the consolidated balance sheets. The annual cash impact associated with the Company's obligations in such plan is approximately $1.7 million per year. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 3 Months Ended |
Sep. 30, 2018 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | 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 second 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 July 27, 2018, the Company completed the 2018 Equity Offering, which was a public offering through which the Company sold 11.4 million shares, including the underwriters' over-allotment, of its common stock, par value $0.01 ("Common Stock"), at a price of $40.24 per share, before underwriting discounts and commissions. Net of these discounts and commissions and other offering expenses, the Company obtained total net proceeds from the 2018 Equity Offering, including the over-allotment exercise, of $445.5 million . The net proceeds of the 2018 Equity Offering were used to repay a corresponding portion of the outstanding borrowings under its U.S. dollar-denominated term loans. On September 29, 2017, the Company completed a public offering (the "2017 Equity Offering"), pursuant to which the Company sold 7.4 million shares of Common Stock, 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 obtained total net proceeds from the 2017 Equity Offering, including the over-allotment exercise, of $277.8 million . The net proceeds of the 2017 Equity Offering were used to fund a portion of the consideration for the Catalent Indiana acquisition due at its closing. Outstanding Stock Shares outstanding include shares of unvested restricted stock. Unvested restricted stock included in reportable shares outstanding was 0.5 million shares as of September 30, 2018 . Shares of unvested restricted stock are excluded from our calculation of basic weighted average shares outstanding, but their dilutive impact is added back in the calculation of diluted weighted average shares outstanding, except when the effect would be anti-dilutive. Stock Repurchase Program On October 29, 2015, the Company’s Board of Directors authorized a share repurchase program to use up to $100.0 million to repurchase shares of its outstanding common stock. Under the program, the Company is authorized to repurchase shares through open market purchases, privately negotiated transactions, or otherwise as permitted by applicable federal securities laws. There has been no purchase pursuant to this program as of September 30, 2018 . Accumulated Other Comprehensive Income/(loss) The components of the changes in the cumulative translation adjustment, minimum pension liability, and available for sale investment for the three months ended September 30, 2018 and 2017 are presented below. Three Months Ended (Dollars in millions) 2018 2017 Foreign currency translation adjustments: Net investment hedge $ (4.2 ) $ (17.6 ) Long-term intercompany loans (3.3 ) 13.5 Translation adjustments (2.8 ) 36.1 Total foreign currency translation adjustment, pretax (10.3 ) 32.0 Tax expense/(benefit) (1.5 ) (6.1 ) Total foreign currency translation adjustment, net of tax $ (8.8 ) $ 38.1 Net change in minimum pension liability Net gain/(loss) recognized during the period $ 0.6 $ 0.6 Total pension liability, pretax 0.6 0.6 Tax expense/(benefit) 0.2 0.2 Net change in minimum pension liability, net of tax $ 0.4 $ 0.4 Net change in available for sale investment: Net gain/(loss) recognized during the period $ — $ (5.2 ) Total available for sale investment, pretax — (5.2 ) Tax expense/(benefit) — (1.8 ) Net change in available for sale investment, net of tax $ — $ (3.4 ) For the three months ended September 30, 2018 , the changes in accumulated other comprehensive income/(loss), net of tax by component are as follows: (Dollars in millions) Foreign Exchange Translation Adjustments Pension and Liability Adjustments Available for Sale Investment Adjustments Total Balance at June 30, 2018 $ (285.1 ) $ (39.6 ) $ (1.1 ) $ (325.8 ) Other comprehensive income/(loss) before reclassifications (8.8 ) — — (8.8 ) Amounts reclassified from accumulated other comprehensive income/(loss) — 0.4 — 0.4 Net current period other comprehensive income/(loss) (8.8 ) 0.4 — (8.4 ) Balance at September 30, 2018 $ (293.9 ) $ (39.2 ) $ (1.1 ) $ (334.2 ) |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Sep. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES SEC inquiry into Juniper Pharmaceuticals, Inc. On August 14, 2018, Operating Company acquired Juniper pursuant to the Juniper Merger Agreement. 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 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. |
Segment Information
Segment Information | 3 Months Ended |
Sep. 30, 2018 | |
Segment Reporting [Abstract] | |
Segment Information | SEGMENT INFORMATION The Company conducts its business within the following operating 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 other (expense)/income, impairments, restructuring costs, interest expense, income tax expense/(benefit), and depreciation and amortization ("Segment EBITDA"). "EBITDA from operations" is consolidated earnings from operations before interest expense, income tax expense/(benefit), and depreciation and amortization. Segment EBITDA and EBITDA from operations are not defined in GAAP and may not be comparable to similarly titled measures used by other companies. The following tables include net revenue and Segment EBITDA during the three months ended September 30, 2018 : Three Months Ended (Dollars in millions) 2018 2017 Softgel Technologies Net revenue $ 199.2 $ 219.7 Segment EBITDA $ 33.3 $ 35.1 Biologics and Specialty Drug Delivery Net revenue 154.6 91.7 Segment EBITDA 26.5 8.7 Oral Drug Delivery Net revenue 130.1 134.6 Segment EBITDA 27.4 38.7 Clinical Supply Services Net revenue 77.7 109.7 Segment EBITDA 20.2 16.7 Inter-segment revenue elimination (9.8 ) (11.8 ) Unallocated costs (1) (39.8 ) (34.0 ) Combined totals: Net revenue $ 551.8 $ 543.9 EBITDA from operations $ 67.6 $ 65.2 (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: Three Months Ended (Dollars in millions) 2018 2017 Impairment charges and gain/(loss) on sale of assets $ (2.9 ) $ — Stock-based compensation (10.0 ) (7.0 ) Restructuring and other special items (a) (13.2 ) (12.3 ) Other income/(expense), net (b) (5.7 ) (5.2 ) Non-allocated corporate costs, net (8.0 ) (9.5 ) Total unallocated costs $ (39.8 ) $ (34.0 ) (a) Restructuring and other special items include transaction and integration costs associated primarily with the acquisitions of Catalent Indiana and Juniper. (b) Amounts for the three months ended September 30, 2018 include a write-off of $4.2 million of previously capitalized financing charges related to the Company's U.S. dollar term loan under its senior secured credit facility and for the three months ended September 30, 2017 were primarily driven by foreign currency remeasurement losses. Refer to Note 8 , Other Expense/(Income) . Provided below is a reconciliation between net earnings/(loss) and EBITDA from operations: Three Months Ended (Dollars in millions) 2018 2017 Net earnings/(loss) $ (14.4 ) $ 3.8 Depreciation and amortization 52.9 39.0 Interest expense, net 28.1 24.3 Income tax expense/(benefit) 1.0 (1.9 ) EBITDA from operations $ 67.6 $ 65.2 The following table includes total assets for each segment, as well as reconciling items necessary to total the amounts reported in the consolidated financial statements: (Dollars in millions) September 30, June 30, Assets Softgel Technologies $ 1,398.3 $ 1,402.0 Biologics and Specialty Drug Delivery 1,798.0 1,739.7 Oral Drug Delivery 1,241.5 1,074.2 Clinical Supply Services 617.3 613.0 Corporate and eliminations (555.3 ) (297.8 ) Total assets $ 4,499.8 $ 4,531.1 |
Supplemental Balance Sheet Info
Supplemental Balance Sheet Information | 3 Months Ended |
Sep. 30, 2018 | |
Balance Sheet Related Disclosures [Abstract] | |
Supplemental Balance Sheet Information | SUPPLEMENTAL BALANCE SHEET INFORMATION Supplemental balance sheet information at September 30, 2018 and June 30, 2018 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) September 30, June 30, Raw materials and supplies $ 158.2 $ 137.1 Work-in-process 47.5 42.3 Finished goods 49.8 48.3 Total inventories, gross 255.5 227.7 Inventory cost adjustment (19.7 ) (18.6 ) Inventories $ 235.8 $ 209.1 Prepaid expenses and other Prepaid expenses and other consist of the following: (Dollars in millions) September 30, June 30, Prepaid expenses $ 24.4 $ 19.2 Spare parts supplies 10.9 11.1 Prepaid income tax 10.0 7.2 Non-U.S. value added tax 17.0 12.5 Other current assets 15.9 15.2 Prepaid expenses and other $ 78.2 $ 65.2 Property, plant, and equipment, net Property, plant, and equipment, net consist of the following: (Dollars in millions) September 30, June 30, Land, buildings, and improvements $ 946.1 $ 928.1 Machinery, equipment, and capitalized software 1,020.5 988.1 Furniture and fixtures 15.2 14.9 Construction in progress 170.4 166.8 Property, plant, and equipment, at cost 2,152.2 2,097.9 Accumulated depreciation (864.0 ) (827.3 ) Property, plant, and equipment, net $ 1,288.2 $ 1,270.6 Depreciation expense was $34.7 million and $27.6 million for the three months ended September 30, 2018 and 2017, respectively. 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. Other accrued liabilities Other accrued liabilities consist of the following: (Dollars in millions) September 30, June 30, Accrued employee-related expenses $ 81.9 $ 104.3 Restructuring accrual 13.6 9.4 Accrued interest 11.1 16.5 Contract liability 105.7 100.9 Accrued income tax 11.9 25.9 Other accrued liabilities and expenses 49.8 55.9 Other accrued liabilities $ 274.0 $ 312.9 |
Subsequent Events Subsequent Ev
Subsequent Events Subsequent Events | 3 Months Ended |
Sep. 30, 2018 | |
Subsequent Event [Line Items] | |
Subsequent Events [Text Block] | SUBSEQUENT EVENTS [Remove footnote if no subsequent events] |
Basis of Presentation and Sum_2
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States ("GAAP") for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. Operating results for the three months ended September 30, 2018 are not necessarily indicative of the results that may be expected for the year ending June 30, 2019 . The consolidated balance sheet at June 30, 2018 has been derived from the audited consolidated financial statements at that date but does not include all of the information and footnotes required by GAAP for complete financial statements. For further information on the Company's accounting policies and footnotes, refer to the consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the year ended June 30, 2018 filed with the Securities and Exchange Commission (the "SEC"). 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 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 Accounting Standards Codification ("ASC") 280, Segment Reporting . |
Foreign Currency Translation | 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 these 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. Beginning on July 1, 2018, the Company accounts for its Argentine operations as highly inflationary. |
Research and Development Costs | Research and Development Costs The Company expenses research and development costs as incurred. Costs incurred in connection with the development of new offerings and manufacturing process improvements are recorded within selling, general, and administrative expenses. Such research and development costs included in selling, general, and administrative expenses amounted to $0.5 million and $1.8 million for the three months ended September 30, 2018 and 2017, respectively. Costs incurred in connection with research and development services the Company provides to customers and services performed in support of the commercial manufacturing process for customers are recorded within cost of sales. Such research and development costs included in cost of sales amounted to $11.3 million and $10.0 million for the three months ended September 30, 2018 and 2017, respectively. |
Recent Financial Accounting Standards | Recent Financial Accounting Standards Recently Adopted Accounting Standards In May 2014, the Financial Accounting Standard Board ("FASB") issued Accounting Standards Update ("ASU") 2014-09, Revenue from Contracts with Customers , which was codified as Accounting Standards Codification 606 ("ASC 606") and superseded nearly all existing revenue-recognition guidance. The 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 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 or as each performance obligation is satisfied. The guidance 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. The guidance is effective for the Company in fiscal 2019. The Company has adopted the guidance as of July 1, 2018 using the modified retrospective approach applied to contracts that were not completed as of that date. The Company recorded a cumulative effect adjustment to the fiscal 2019 opening balance of its accumulated deficit upon adoption of this guidance, which decreased beginning accumulated deficit by $15.1 million . The following table provides the impact of adopting the guidance on the Company’s financial statements: Consolidated Statement of Operations - Three months ended September 30, 2018 (Dollars in millions) As Reported Effects of Change Amount without Adoption of ASC 606 Net revenue $ 551.8 $ 14.2 $ 566.0 Cost of sales 403.3 11.7 415.0 Gross margin 148.5 2.5 151.0 Earnings/(loss) from operations, before income taxes (13.4 ) 2.5 (10.9 ) Income tax expense 1.0 0.2 1.2 Net earnings/(loss) $ (14.4 ) $ 2.3 $ (12.1 ) The impact of ASC 606 on the Company's consolidated balance sheet is immaterial. The adoption of ASC 606 resulted in three primary changes in the first quarter as compared to the previous revenue recognition guidance: (a) revenue from commercial product supply is recognized following successful completion of the required quality assurance process where it was previously recognized upon shipment of the product to the customer; (b) earlier recognition of revenue from certain commercial supply contract cancellations is recognized as variable consideration as the Company’s performance obligations are satisfied rather than only upon agreement of the amount with the customer; and (c) revenue from sourcing comparator drug product for clinical supply services is recorded net of the cost of procuring it rather than at full value with a corresponding expense. Refer to Note 2 for the Company's revenue recognition policy. 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. The Company adopted this guidance as of July 1, 2018, on a retrospective basis, which had an effect on the consolidated statement of operations for the three months period ended September 30, 2017. The following table summarizes the Company's As Previously Reported and As Adjusted changes to the consolidated statement of operations for the three months ended September 30, 2017: Three Months Ended September 30, 2017 (Dollars in millions) As Previously Reported As Adjusted Selling, general, and administrative expenses $ 107.0 $ 107.5 Operating earnings 31.9 31.4 Other expense/(income), net 5.7 5.2 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 by issuers. The ASU is effective for fiscal years beginning after December 15, 2018 and interim periods within those years. Early adoption is permitted. The Company early adopted this guidance as of July 1, 2018 on a prospective basis. The adoption of this guidance was not material to the Company's consolidated financial statements. 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 is effective for annual periods beginning after December 15, 2017 and interim periods within those annual periods. The Company adopted this guidance prospectively at the beginning of fiscal 2019. The adoption of this guidance was not 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 is effective for public reporting entities in fiscal years beginning after December 15, 2017 and interim periods within those fiscal years. The Company adopted this guidance prospectively at the beginning of fiscal 2019. The adoption of this guidance was not material to the Company's consolidated financial statements. In January 2016, the FASB issued ASU 2016-01, Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities , which changes the accounting for equity investments and financial liabilities under the fair value option, and presentation and disclosure requirements for financial instruments. The ASU requires equity investments with readily determinable fair values to be measured at fair value and to recognize change in fair value in net earnings. The ASU is not applicable to equity investments accounted for under the equity method of accounting or those that result in consolidation of the investee. It is effective for public reporting entities in fiscal years beginning after December 15, 2017 and interim periods within those fiscal years. The Company adopted this guidance at the beginning of fiscal 2019. The adoption of this guidance was not material to the Company's consolidated financial statements. New Accounting Standards Not Adopted as of September 30, 2018 In August 2018, the FASB issued ASU 2018-15, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract , which aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The ASU will be effective for fiscal years beginning after December 15, 2019 and interim periods within those fiscal years and allows for either a retrospective or prospective application. The Company is currently evaluating the impact of adopting this guidance on its consolidated financial statements. 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 June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , which introduces a new accounting model Credit Expected Credit Losses model ("CECL"). CECL requires earlier recognition of credit losses, while also providing additional transparency about credit risk. The CECL model utilizes a lifetime expected credit loss measurement objective for the recognition of credit losses for receivables at the time the financial asset is originated or acquired. The expected credit losses are adjusted each period for changes in expected lifetime credit losses. This model replaces the multiple existing impairment models in current GAAP, which generally require that a loss be incurred before it is recognized. The new standard will also apply to receivables arising from revenue transactions such as contract assets and accounts receivables. The ASU will be effective for fiscal years beginning after December 15, 2019. 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 ASC 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 on its consolidated financial statements. |
Basis of Presentation and Sum_3
Basis of Presentation and Summary of Significant Accounting Policies Recent Financial Accounting Standards (Tables) | 3 Months Ended |
Sep. 30, 2018 | |
Accounting Standards Update 2014-09 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Schedule of Prospective Adoption of New Accounting Pronouncements | The following table provides the impact of adopting the guidance on the Company’s financial statements: Consolidated Statement of Operations - Three months ended September 30, 2018 (Dollars in millions) As Reported Effects of Change Amount without Adoption of ASC 606 Net revenue $ 551.8 $ 14.2 $ 566.0 Cost of sales 403.3 11.7 415.0 Gross margin 148.5 2.5 151.0 Earnings/(loss) from operations, before income taxes (13.4 ) 2.5 (10.9 ) Income tax expense 1.0 0.2 1.2 Net earnings/(loss) $ (14.4 ) $ 2.3 $ (12.1 ) |
Accounting Standards Update 2017-07 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Schedule of Prospective Adoption of New Accounting Pronouncements | As Previously Reported and As Adjusted changes to the consolidated statement of operations for the three months ended September 30, 2017: Three Months Ended September 30, 2017 (Dollars in millions) As Previously Reported As Adjusted Selling, general, and administrative expenses $ 107.0 $ 107.5 Operating earnings 31.9 31.4 Other expense/(income), net 5.7 5.2 |
Revenue Recognition Revenue Rec
Revenue Recognition Revenue Recognition (Tables) | 3 Months Ended |
Sep. 30, 2018 | |
Disaggregation of Revenue [Line Items] | |
Disaggregation of Revenue | The following table allocates revenue for the three months ended September 30, 2018 by type of activity and reporting segment (in millions): Softgel Technologies Biologics & Specialty Drug Delivery Oral Drug Delivery Clinical Supply Services Total Manufacturing & commercial product supply $ 184.4 $ 73.8 $ 81.7 $ — $ 339.9 Development services 14.8 80.8 48.4 — 144.0 Clinical supply services — — — 77.7 77.7 Total $ 199.2 $ 154.6 $ 130.1 $ 77.7 $ 561.6 Inter-segment revenue elimination (9.8 ) Combined net revenue $ 551.8 The following table allocates revenue by the location where the goods were made or the service performed: (Dollars in millions) Three months ended September 30, 2018 United States $ 264.4 Europe 196.4 International Other 107.6 Elimination of revenue attributable to multiple locations (16.6 ) Total $ 551.8 |
Revenue Recognition Contractual
Revenue Recognition Contractual Liabilities (Tables) | 3 Months Ended |
Sep. 30, 2018 | |
Revenue Recognition and Deferred Revenue [Abstract] | |
Contractual Liabilities | Changes in the contractual liabilities balance during the three months ended September 30, 2018 are as follows: (Dollars in millions) Contract liability Balance at June 30, 2018 $ 100.9 Balance at September 30, 2018 $ 105.7 Revenue recognized in the period from: Amounts included in contracts liability at the beginning of the period $ 41.0 |
Goodwill (Tables)
Goodwill (Tables) | 3 Months Ended |
Sep. 30, 2018 | |
Goodwill Disclosure [Abstract] | |
Goodwill - Rollforward | The following table summarizes the changes between June 30, 2018 and September 30, 2018 in the carrying amount of goodwill in total and by reporting segment: (Dollars in millions) Softgel Technologies Biologics and Specialty Drug Delivery Oral Drug Delivery Clinical Supply Services Total Balance at June 30, 2018 $ 415.2 $ 505.7 $ 319.9 $ 156.4 $ 1,397.2 Additions — — 40.3 — 40.3 Foreign currency translation adjustments (1.7 ) 0.4 (0.5 ) (0.7 ) (2.5 ) Balance at September 30, 2018 $ 413.5 $ 506.1 $ 359.7 $ 155.7 $ 1,435.0 |
Definite Lived Long-Lived Ass_2
Definite Lived Long-Lived Assets (Tables) | 3 Months Ended |
Sep. 30, 2018 | |
Intangible Assets Disclosure [Abstract] | |
Other Intangible Assets Subject to Amortization | The details of other intangibles, net as of September 30, 2018 and June 30, 2018 are as follows: (Dollars in millions) Weighted Average Life Gross Carrying Value Accumulated Amortization Net Carrying Value September 30, 2018 Amortized intangibles: Core technology 18 years $ 170.5 $ (87.6 ) $ 82.9 Customer relationships 14 years 596.9 (150.7 ) 446.2 Product relationships 11 years 285.2 (202.4 ) 82.8 Total intangible assets $ 1,052.6 $ (440.7 ) $ 611.9 The increases in customer relationships and product relationships as of September 30, 2018 are associated with the acquisition of Juniper in August 2018. (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 |
Future Amortization Expense | Future amortization expense for the next five fiscal years is estimated to be: (Dollars in millions) Remainder 2020 2021 2022 2023 2024 Amortization expense $ 52.6 $ 57.8 $ 57.8 $ 57.8 $ 57.8 $ 57.7 |
Long-Term Obligations and Oth_2
Long-Term Obligations and Other Short-Term Borrowings (Tables) | 3 Months Ended |
Sep. 30, 2018 | |
Debt Disclosure [Abstract] | |
Long-Term Obligations, Presented Net of Issue Discounts and Fees Paid to Lenders, and Other Short-Term Borrowings | Long-term obligations and short-term borrowings consist of the following at September 30, 2018 and June 30, 2018 : (Dollars in millions) Maturity as of September 30, 2018 September 30, 2018 June 30, 2018 Senior Secured Credit Facilities Term loan facility U.S. dollar-denominated May 2024 $ 779.3 $ 1,228.4 Term loan facility euro-denominated May 2024 361.1 358.9 Euro-denominated 4.75% Senior Notes due 2024 December 2024 442.3 438.4 U.S. dollar-denominated 4.875% Senior Notes due 2026 January 2026 444.0 443.8 Deferred purchase consideration October 2021 190.4 188.9 $200 million revolving credit facility May 2022 — — Capital lease obligations 2020 to 2032 60.1 60.8 Other obligations 2018 to 2019 1.9 2.1 Total 2,279.1 2,721.3 Less: Current portion of long-term obligations and other short-term 73.4 71.9 Long-term obligations, less current portion $ 2,205.7 $ 2,649.4 |
Long-Term Obligations and Oth_3
Long-Term Obligations and Other Short-Term Borrowings Fair Value of Financial Instruments (Tables) | 3 Months Ended |
Sep. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Schedule Of Carrying And Fair Value Of Financial Instruments Table | The carrying amounts and the estimated fair values of financial instruments as of September 30, 2018 and June 30, 2018 are as follows: September 30, 2018 June 30, 2018 (Dollars in millions) Fair Value Measurement Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value Euro-denominated 4.75% Senior Notes Level 1 $ 442.3 $ 466.1 $ 438.4 $ 457.6 U.S. Dollar-denominated 4.875% Senior Notes Level 1 444.0 425.1 443.8 428.3 Senior Secured Credit Facilities & Other Level 2 1,392.8 1,361.0 1,839.1 1,768.0 Total $ 2,279.1 $ 2,252.2 $ 2,721.3 $ 2,653.9 |
Earnings Per Share Earnings Per
Earnings Per Share Earnings Per Share (Tables) | 3 Months Ended |
Sep. 30, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The reconciliations between basic and diluted earnings per share attributable to Catalent common shareholders for the three months ended September 30, 2018 and 2017 , respectively, are as follows (in millions, except share and per share data): Three Months Ended 2018 2017 Net earnings/(loss) $ (14.4 ) $ 3.8 Weighted average shares outstanding 142,149,315 125,713,246 Dilutive securities issuable-stock plans — 2,071,275 Total weighted average diluted shares outstanding 142,149,315 127,784,521 Earnings/(loss) per share: Basic $ (0.10 ) $ 0.03 Diluted $ (0.10 ) $ 0.03 |
Other Income and Expense (Table
Other Income and Expense (Tables) | 3 Months Ended |
Sep. 30, 2018 | |
Other Income and Expenses [Abstract] | |
Other Nonoperating Income and Expense [Text Block] | The components of other expense/(income), net for the three months ended September 30, 2018 and 2017 are as follows: Three Months Ended (Dollars in millions) 2018 2017 Other expense/(income), net Debt refinancing costs (1) $ 4.2 $ — Foreign currency (gains) and losses (2) 1.7 5.7 Other (0.2 ) (0.5 ) Total other expense/(income), net $ 5.7 $ 5.2 (1) The expense in the three months ended September 30, 2018 includes a write-off of $4.2 million of previously capitalized financing charges related to the Company's U.S. dollar term loan under its senior secured credit facility. (2) Foreign currency remeasurement (gains) and losses include both cash and non-cash transactions. |
Restructuring and Other Restr_2
Restructuring and Other Restructuring and Other Costs (Tables) | 3 Months Ended |
Sep. 30, 2018 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Costs [Table Text Block] | The following table summarizes the significant costs recorded within restructuring and other costs: Three Months Ended (Dollars in millions) 2018 2017 Restructuring costs: Employee-related reorganization $ 9.7 $ 1.7 Facility exit and other costs — 0.6 Total restructuring costs $ 9.7 $ 2.3 Other - customer claims net of insurance recoveries — (1.1 ) Total restructuring and other costs $ 9.7 $ 1.2 |
Derivative Instruments and He_2
Derivative Instruments and Hedging Activities Net Investment Hedge Activity (Tables) | 3 Months Ended |
Sep. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Schedule of Net Investment Hedge in Accumulated Other Comprehensive Income (Loss) and Statement of Financial Performance | The following table includes net investment hedge activity during the three months ended September 30, 2018 and 2017 . Three Months Ended (Dollars in millions) 2018 2017 Unrealized foreign exchange gain/(loss) within other comprehensive income $ (4.2 ) $ (17.6 ) Unrealized foreign exchange gain/(loss) within statement of operations $ (2.5 ) $ (13.4 ) |
Employee Retirement Benefit P_2
Employee Retirement Benefit Plans (Tables) | 3 Months Ended |
Sep. 30, 2018 | |
Defined Benefit Plan [Abstract] | |
Components of Company's Net Periodic Benefit Costs | Components of the Company’s net periodic benefit costs are as follows: Three Months Ended (Dollars in millions) 2018 2017 Components of net periodic benefit cost: Service cost $ 0.9 $ 0.9 Interest cost 1.9 1.8 Expected return on plan assets (2.6 ) (2.9 ) Amortization (1) 0.6 0.6 Net amount recognized $ 0.8 $ 0.4 (1) Amount represents the amortization of unrecognized actuarial gains/(losses). |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 3 Months Ended |
Sep. 30, 2018 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
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 three months ended September 30, 2018 and 2017 are presented below. Three Months Ended (Dollars in millions) 2018 2017 Foreign currency translation adjustments: Net investment hedge $ (4.2 ) $ (17.6 ) Long-term intercompany loans (3.3 ) 13.5 Translation adjustments (2.8 ) 36.1 Total foreign currency translation adjustment, pretax (10.3 ) 32.0 Tax expense/(benefit) (1.5 ) (6.1 ) Total foreign currency translation adjustment, net of tax $ (8.8 ) $ 38.1 Net change in minimum pension liability Net gain/(loss) recognized during the period $ 0.6 $ 0.6 Total pension liability, pretax 0.6 0.6 Tax expense/(benefit) 0.2 0.2 Net change in minimum pension liability, net of tax $ 0.4 $ 0.4 Net change in available for sale investment: Net gain/(loss) recognized during the period $ — $ (5.2 ) Total available for sale investment, pretax — (5.2 ) Tax expense/(benefit) — (1.8 ) Net change in available for sale investment, net of tax $ — $ (3.4 ) |
Schedule of Accumulated Other Comprehensive Income (Loss) | For the three months ended September 30, 2018 , the changes in accumulated other comprehensive income/(loss), net of tax by component are as follows: (Dollars in millions) Foreign Exchange Translation Adjustments Pension and Liability Adjustments Available for Sale Investment Adjustments Total Balance at June 30, 2018 $ (285.1 ) $ (39.6 ) $ (1.1 ) $ (325.8 ) Other comprehensive income/(loss) before reclassifications (8.8 ) — — (8.8 ) Amounts reclassified from accumulated other comprehensive income/(loss) — 0.4 — 0.4 Net current period other comprehensive income/(loss) (8.8 ) 0.4 — (8.4 ) Balance at September 30, 2018 $ (293.9 ) $ (39.2 ) $ (1.1 ) $ (334.2 ) |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Sep. 30, 2018 | |
Segment Reporting [Abstract] | |
Net Revenue and Segment EBITDA | The following tables include net revenue and Segment EBITDA during the three months ended September 30, 2018 : Three Months Ended (Dollars in millions) 2018 2017 Softgel Technologies Net revenue $ 199.2 $ 219.7 Segment EBITDA $ 33.3 $ 35.1 Biologics and Specialty Drug Delivery Net revenue 154.6 91.7 Segment EBITDA 26.5 8.7 Oral Drug Delivery Net revenue 130.1 134.6 Segment EBITDA 27.4 38.7 Clinical Supply Services Net revenue 77.7 109.7 Segment EBITDA 20.2 16.7 Inter-segment revenue elimination (9.8 ) (11.8 ) Unallocated costs (1) (39.8 ) (34.0 ) Combined totals: Net revenue $ 551.8 $ 543.9 EBITDA from operations $ 67.6 $ 65.2 (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: Three Months Ended (Dollars in millions) 2018 2017 Impairment charges and gain/(loss) on sale of assets $ (2.9 ) $ — Stock-based compensation (10.0 ) (7.0 ) Restructuring and other special items (a) (13.2 ) (12.3 ) Other income/(expense), net (b) (5.7 ) (5.2 ) Non-allocated corporate costs, net (8.0 ) (9.5 ) Total unallocated costs $ (39.8 ) $ (34.0 ) (a) Restructuring and other special items include transaction and integration costs associated primarily with the acquisitions of Catalent Indiana and Juniper. (b) Amounts for the three months ended September 30, 2018 include a write-off of $4.2 million of previously capitalized financing charges related to the Company's U.S. dollar term loan under its senior secured credit facility and for the three months ended September 30, 2017 were primarily driven by foreign currency remeasurement losses. Refer to Note 8 , Other Expense/(Income) . |
Reconciliation of Earnings/(Loss) from Continuing Operations to EBITDA | Provided below is a reconciliation between net earnings/(loss) and EBITDA from operations: Three Months Ended (Dollars in millions) 2018 2017 Net earnings/(loss) $ (14.4 ) $ 3.8 Depreciation and amortization 52.9 39.0 Interest expense, net 28.1 24.3 Income tax expense/(benefit) 1.0 (1.9 ) EBITDA from operations $ 67.6 $ 65.2 |
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 financial statements: (Dollars in millions) September 30, June 30, Assets Softgel Technologies $ 1,398.3 $ 1,402.0 Biologics and Specialty Drug Delivery 1,798.0 1,739.7 Oral Drug Delivery 1,241.5 1,074.2 Clinical Supply Services 617.3 613.0 Corporate and eliminations (555.3 ) (297.8 ) Total assets $ 4,499.8 $ 4,531.1 |
Supplemental Balance Sheet In_2
Supplemental Balance Sheet Information (Tables) | 3 Months Ended |
Sep. 30, 2018 | |
Balance Sheet Related Disclosures [Abstract] | |
Inventory | Work-in-process and finished goods inventories include raw materials, labor, and overhead. Total inventories consist of the following: (Dollars in millions) September 30, June 30, Raw materials and supplies $ 158.2 $ 137.1 Work-in-process 47.5 42.3 Finished goods 49.8 48.3 Total inventories, gross 255.5 227.7 Inventory cost adjustment (19.7 ) (18.6 ) Inventories $ 235.8 $ 209.1 |
Prepaid and Other Assets | Prepaid expenses and other consist of the following: (Dollars in millions) September 30, June 30, Prepaid expenses $ 24.4 $ 19.2 Spare parts supplies 10.9 11.1 Prepaid income tax 10.0 7.2 Non-U.S. value added tax 17.0 12.5 Other current assets 15.9 15.2 Prepaid expenses and other $ 78.2 $ 65.2 |
Property and Equipment | Property, plant, and equipment, net consist of the following: (Dollars in millions) September 30, June 30, Land, buildings, and improvements $ 946.1 $ 928.1 Machinery, equipment, and capitalized software 1,020.5 988.1 Furniture and fixtures 15.2 14.9 Construction in progress 170.4 166.8 Property, plant, and equipment, at cost 2,152.2 2,097.9 Accumulated depreciation (864.0 ) (827.3 ) Property, plant, and equipment, net $ 1,288.2 $ 1,270.6 |
Other Accrued Liabilities | Other accrued liabilities consist of the following: (Dollars in millions) September 30, June 30, Accrued employee-related expenses $ 81.9 $ 104.3 Restructuring accrual 13.6 9.4 Accrued interest 11.1 16.5 Contract liability 105.7 100.9 Accrued income tax 11.9 25.9 Other accrued liabilities and expenses 49.8 55.9 Other accrued liabilities $ 274.0 $ 312.9 |
Basis of Presentation and Sum_4
Basis of Presentation and Summary of Significant Accounting Policies Research and Development Expense (Details) - USD ($) $ in Millions | 3 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Selling, General and Administrative Expenses | ||
Research and Development Expense [Line Items] | ||
Research and Development Expense | $ 0.5 | $ 1.8 |
Cost of Sales | ||
Research and Development Expense [Line Items] | ||
Research and Development Expense | $ 11.3 | $ 10 |
Basis of Presentation and Sum_5
Basis of Presentation and Summary of Significant Accounting Policies Recent Financial Accounting Standards (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Cumulative effect of change in accounting for ASC 606, net of tax | $ 15.1 | ||
Net revenue | 551.8 | $ 543.9 | |
Cost of sales | 403.3 | 403.8 | |
Gross margin | 148.5 | 140.1 | |
Earnings/(loss) from operations, before income taxes | 1.9 | ||
Income tax expense | 1 | (1.9) | |
Net earnings/(loss) | (14.4) | 3.8 | |
Selling, general, and administrative expenses | 115.5 | 107.5 | |
Operating Income (Loss) | 20.4 | 31.4 | |
Other expense/(income), net | [1] | 5.7 | 5.2 |
Accumulated Deficit | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Cumulative effect of change in accounting for ASC 606, net of tax | 15.1 | ||
Accounting Standards Update 2014-09 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Earnings/(loss) from operations, before income taxes | (13.4) | ||
Income tax expense | 1 | ||
Net earnings/(loss) | (14.4) | ||
Accounting Standards Update 2014-09 | Difference between Revenue Guidance in Effect before and after Topic 606 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Net revenue | 14.2 | ||
Cost of sales | 11.7 | ||
Gross margin | 2.5 | ||
Earnings/(loss) from operations, before income taxes | 2.5 | ||
Income tax expense | 0.2 | ||
Net earnings/(loss) | 2.3 | ||
Accounting Standards Update 2014-09 | Calculated under Revenue Guidance in Effect before Topic 606 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Net revenue | 566 | ||
Cost of sales | 415 | ||
Gross margin | 151 | ||
Earnings/(loss) from operations, before income taxes | (10.9) | ||
Income tax expense | 1.2 | ||
Net earnings/(loss) | $ (12.1) | ||
Accounting Standards Update 2017-07 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Selling, general, and administrative expenses | 107.5 | ||
Operating Income (Loss) | 31.4 | ||
Other expense/(income), net | 5.2 | ||
Accounting Standards Update 2017-07 | Previously Reported | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Selling, general, and administrative expenses | 107 | ||
Operating Income (Loss) | 31.9 | ||
Other expense/(income), net | $ 5.7 | ||
[1] | Amounts for the three months ended September 30, 2018 include a write-off of $4.2 million of previously capitalized financing charges related to the Company's U.S. dollar term loan under its senior secured credit facility and for the three months ended September 30, 2017 were primarily driven by foreign currency remeasurement losses. Refer to Note 8, Other Expense/(Income). |
Revenue Recognition Disaggregat
Revenue Recognition Disaggregation of Revenue by type of activity and reporting segment (Details) - USD ($) $ in Millions | 3 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Disaggregation of Revenue [Line Items] | ||
Inter-segment revenue elimination | $ (9.8) | $ (11.8) |
Net revenue | 551.8 | 543.9 |
Softgel Technologies | ||
Disaggregation of Revenue [Line Items] | ||
Net revenue | 199.2 | 219.7 |
Softgel Technologies | Manufacturing & Commercial Product Supply | ||
Disaggregation of Revenue [Line Items] | ||
Net revenue | 184.4 | |
Softgel Technologies | Development Services | ||
Disaggregation of Revenue [Line Items] | ||
Net revenue | 14.8 | |
Softgel Technologies | Clinical Supply Services | ||
Disaggregation of Revenue [Line Items] | ||
Net revenue | 0 | |
Biologics and Specialty Drug Delivery | ||
Disaggregation of Revenue [Line Items] | ||
Net revenue | 154.6 | 91.7 |
Biologics and Specialty Drug Delivery | Manufacturing & Commercial Product Supply | ||
Disaggregation of Revenue [Line Items] | ||
Net revenue | 73.8 | |
Biologics and Specialty Drug Delivery | Development Services | ||
Disaggregation of Revenue [Line Items] | ||
Net revenue | 80.8 | |
Biologics and Specialty Drug Delivery | Clinical Supply Services | ||
Disaggregation of Revenue [Line Items] | ||
Net revenue | 0 | |
Oral Drug Delivery | ||
Disaggregation of Revenue [Line Items] | ||
Net revenue | 130.1 | 134.6 |
Oral Drug Delivery | Manufacturing & Commercial Product Supply | ||
Disaggregation of Revenue [Line Items] | ||
Net revenue | 81.7 | |
Oral Drug Delivery | Development Services | ||
Disaggregation of Revenue [Line Items] | ||
Net revenue | 48.4 | |
Oral Drug Delivery | Clinical Supply Services | ||
Disaggregation of Revenue [Line Items] | ||
Net revenue | 0 | |
Clinical Supply Services | ||
Disaggregation of Revenue [Line Items] | ||
Net revenue | 77.7 | $ 109.7 |
Clinical Supply Services | Manufacturing & Commercial Product Supply | ||
Disaggregation of Revenue [Line Items] | ||
Net revenue | 0 | |
Clinical Supply Services | Development Services | ||
Disaggregation of Revenue [Line Items] | ||
Net revenue | 0 | |
Clinical Supply Services | Clinical Supply Services | ||
Disaggregation of Revenue [Line Items] | ||
Net revenue | 77.7 | |
Total Catalent before inter-segment revenue elimination | ||
Disaggregation of Revenue [Line Items] | ||
Net revenue | 561.6 | |
Total Catalent before inter-segment revenue elimination | Manufacturing & Commercial Product Supply | ||
Disaggregation of Revenue [Line Items] | ||
Net revenue | 339.9 | |
Total Catalent before inter-segment revenue elimination | Development Services | ||
Disaggregation of Revenue [Line Items] | ||
Net revenue | 144 | |
Total Catalent before inter-segment revenue elimination | Clinical Supply Services | ||
Disaggregation of Revenue [Line Items] | ||
Net revenue | $ 77.7 |
Revenue Recognition Disaggreg_2
Revenue Recognition Disaggregation of Revenue by Geography (Details) - USD ($) $ in Millions | 3 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Disaggregation of Revenue [Line Items] | ||
Elimination of revenue attributable to multiple locations | $ (16.6) | |
Net revenue | 551.8 | $ 543.9 |
North America | ||
Disaggregation of Revenue [Line Items] | ||
Net revenue | 264.4 | |
Europe | ||
Disaggregation of Revenue [Line Items] | ||
Net revenue | 196.4 | |
International Other | ||
Disaggregation of Revenue [Line Items] | ||
Net revenue | $ 107.6 |
Revenue Recognition Contractu_2
Revenue Recognition Contractual Liabilities (Details) - USD ($) $ in Millions | 3 Months Ended | |
Sep. 30, 2018 | Jun. 30, 2018 | |
Revenue Recognition and Deferred Revenue [Abstract] | ||
Contract liability | $ 105.7 | $ 100.9 |
Deferred Revenue, Revenue Recognized | $ 41 |
Revenue Recognition Remaining P
Revenue Recognition Remaining Performance Obligations (Details) $ in Millions | Sep. 30, 2018USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Amount | $ 1,115.9 |
Revenue, Remaining Performance Obligation, Percentage to be recognized over the next nine months | 72.00% |
Clinical Supply Services | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Amount | $ 301.5 |
Business Combinations Acquisiti
Business Combinations Acquisition (Details) - USD ($) $ in Millions | Aug. 14, 2018 | Oct. 23, 2017 | Sep. 30, 2018 | Sep. 30, 2017 |
Business Combinations [Abstract] | ||||
Business Acquisition, Percentage of Voting Interests Acquired | 100.00% | |||
Business Acquisition, Name of Acquired Entity | Juniper Pharmaceuticals, Inc. | Cook Pharmica LLC | ||
Payments to Acquire Businesses, Net of Cash Acquired | $ 127.5 | $ 127.5 | $ 0 | |
Payments to Acquire Businesses, Gross | $ 950 |
Business Combinations Net Asset
Business Combinations Net Assets Acquired (Details) $ in Millions | Aug. 14, 2018USD ($) |
Product Relationships [Member] | |
Business Acquisition [Line Items] | |
Finite-lived Intangible Assets Acquired | $ 75 |
Customer Relationships [Member] | |
Business Acquisition [Line Items] | |
Finite-lived Intangible Assets Acquired | $ 11 |
Goodwill - Rollforward (Detail)
Goodwill - Rollforward (Detail) $ in Millions | 3 Months Ended |
Sep. 30, 2018USD ($) | |
Goodwill [Roll Forward] | |
Beginning balance | $ 1,397.2 |
Goodwill, Acquired During Period | 40.3 |
Foreign currency translation adjustments | (2.5) |
Ending balance | 1,435 |
Softgel Technologies | |
Goodwill [Roll Forward] | |
Beginning balance | 415.2 |
Goodwill, Acquired During Period | 0 |
Foreign currency translation adjustments | (1.7) |
Ending balance | 413.5 |
Biologics and Specialty Drug Delivery | |
Goodwill [Roll Forward] | |
Beginning balance | 505.7 |
Goodwill, Acquired During Period | 0 |
Foreign currency translation adjustments | 0.4 |
Ending balance | 506.1 |
Oral Drug Delivery | |
Goodwill [Roll Forward] | |
Beginning balance | 319.9 |
Goodwill, Acquired During Period | 40.3 |
Foreign currency translation adjustments | (0.5) |
Ending balance | 359.7 |
Clinical Supply Services | |
Goodwill [Roll Forward] | |
Beginning balance | 156.4 |
Goodwill, Acquired During Period | 0 |
Foreign currency translation adjustments | (0.7) |
Ending balance | $ 155.7 |
Definite Lived Long-Lived Ass_3
Definite Lived Long-Lived Assets - Other Intangible Assets Subject to Amortization (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Sep. 30, 2018 | Jun. 30, 2018 | |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | $ 1,052.6 | $ 968.3 |
Accumulated Amortization | (440.7) | (423.4) |
Net Carrying Value | $ 611.9 | $ 544.9 |
Core technology [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Life | 18 years | 18 years |
Gross Carrying Value | $ 170.5 | $ 170.8 |
Accumulated Amortization | (87.6) | (85.3) |
Net Carrying Value | $ 82.9 | $ 85.5 |
Customer Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Life | 14 years | 14 years |
Gross Carrying Value | $ 596.9 | $ 587 |
Accumulated Amortization | (150.7) | (140.9) |
Net Carrying Value | $ 446.2 | $ 446.1 |
Product Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Life | 11 years | 12 years |
Gross Carrying Value | $ 285.2 | $ 210.5 |
Accumulated Amortization | (202.4) | (197.2) |
Net Carrying Value | $ 82.8 | $ 13.3 |
Definite Lived Long-Lived Ass_4
Definite Lived Long-Lived Assets - Amortization Expense (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Intangible Assets Disclosure [Abstract] | ||
Amortization expense | $ 18.2 | $ 11.4 |
Remainder Fiscal 2019 | 52.6 | |
2,020 | 57.8 | |
2,021 | 57.8 | |
2,022 | 57.8 | |
2,023 | 57.8 | |
2,024 | $ 57.7 |
Long-Term Obligations and Oth_4
Long-Term Obligations and Other Short-Term Borrowings - Long-Term Obligations, Presented Net of Issue Discounts and Fees Paid to Lenders, and Other Short-Term Borrowings (Detail) € in Millions, $ in Millions | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Oct. 18, 2017USD ($) | Dec. 09, 2016EUR (€) |
Schedule Of Debt [Line Items] | ||||
Debt and Capital Lease Obligations | $ 2,279.1 | $ 2,721.3 | ||
Debt, Current | 73.4 | 71.9 | ||
Long-term obligations, less current portion | 2,205.7 | 2,649.4 | ||
Term loan facility U.S. dollar-denominated | ||||
Schedule Of Debt [Line Items] | ||||
Debt and Capital Lease Obligations | 779.3 | 1,228.4 | ||
Term loan facility euro-denominated | ||||
Schedule Of Debt [Line Items] | ||||
Debt and Capital Lease Obligations | 361.1 | 358.9 | ||
Euro-denominated 4.75% Senior Notes due 2024 | ||||
Schedule Of Debt [Line Items] | ||||
Debt and Capital Lease Obligations | 442.3 | 438.4 | € 380 | |
U.S. dollar-denominated 4.875% Senior Notes due 2026 | ||||
Schedule Of Debt [Line Items] | ||||
Debt and Capital Lease Obligations | 444 | 443.8 | $ 450 | |
Deferred purchase consideration | ||||
Schedule Of Debt [Line Items] | ||||
Debt and Capital Lease Obligations | 190.4 | 188.9 | ||
$200 million revolving credit facility | ||||
Schedule Of Debt [Line Items] | ||||
Debt and Capital Lease Obligations | 0 | 0 | ||
Capital lease obligations | ||||
Schedule Of Debt [Line Items] | ||||
Debt and Capital Lease Obligations | 60.1 | 60.8 | ||
Other obligations | ||||
Schedule Of Debt [Line Items] | ||||
Debt and Capital Lease Obligations | $ 1.9 | $ 2.1 |
Long-Term Obligations and Oth_5
Long-Term Obligations and Other Short-Term Borrowings Long-Term Obligations and Other Short-Term Borrowings - Interest Rate (Details) | 3 Months Ended |
Sep. 30, 2018 | |
Euro-denominated 4.75% Senior Notes due 2024 | |
Debt Instrument [Line Items] | |
Debt Instrument, Interest Rate, Stated Percentage | 4.75% |
U.S. dollar-denominated 4.875% Senior Notes due 2026 | |
Debt Instrument [Line Items] | |
Debt Instrument, Interest Rate, Stated Percentage | 4.875% |
London Interbank Offered Rate (LIBOR) [Member] | Term loan facility U.S. dollar-denominated | |
Debt Instrument [Line Items] | |
Debt Instrument, Basis Spread on Variable Rate | 2.25% |
London Interbank Offered Rate (LIBOR) [Member] | Term loan facility euro-denominated | |
Debt Instrument [Line Items] | |
Debt Instrument, Basis Spread on Variable Rate | 1.75% |
Minimum [Member] | London Interbank Offered Rate (LIBOR) [Member] | Term loan facility U.S. dollar-denominated | |
Debt Instrument [Line Items] | |
Debt Instrument, Interest Rate, Stated Percentage | 1.00% |
Minimum [Member] | London Interbank Offered Rate (LIBOR) [Member] | Term loan facility euro-denominated | |
Debt Instrument [Line Items] | |
Debt Instrument, Interest Rate, Stated Percentage | 1.00% |
Minimum [Member] | London Interbank Offered Rate (LIBOR) [Member] | $200 million revolving credit facility | |
Debt Instrument [Line Items] | |
Debt Instrument, Basis Spread on Variable Rate | 2.00% |
Maximum [Member] | London Interbank Offered Rate (LIBOR) [Member] | $200 million revolving credit facility | |
Debt Instrument [Line Items] | |
Debt Instrument, Basis Spread on Variable Rate | 2.25% |
Long-Term Obligations and Oth_6
Long-Term Obligations and Other Short-Term Borrowings Long-Term Obligations and Other Short-Term Borrowings (Details) € in Millions, $ in Millions | Jul. 31, 2018USD ($) | Oct. 23, 2017USD ($) | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Dec. 31, 2017USD ($) | Oct. 18, 2017USD ($) | Sep. 30, 2017USD ($) | Sep. 18, 2017USD ($) | Dec. 09, 2016EUR (€) |
Debt Instrument [Line Items] | |||||||||
Debt and Capital Lease Obligations | $ 2,279.1 | $ 2,721.3 | |||||||
Payments to Acquire Businesses, Gross | $ 950 | ||||||||
Prepaid expenses and other | 78.2 | 65.2 | |||||||
Deferred Purchase Consideration [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Payments to Acquire Businesses, Gross | 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 | ||||||||
Term loan facility U.S. dollar-denominated | |||||||||
Debt Instrument [Line Items] | |||||||||
Repayments of Secured Debt | $ 450 | ||||||||
Debt and Capital Lease Obligations | 779.3 | 1,228.4 | |||||||
Euro-denominated 4.75% Senior Notes due 2024 | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt and Capital Lease Obligations | 442.3 | 438.4 | € 380 | ||||||
U.S. dollar-denominated 4.875% Senior Notes due 2026 | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt and Capital Lease Obligations | $ 444 | $ 443.8 | $ 450 | ||||||
Bridge Loan [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Bridge Loan | $ 700 | ||||||||
Prepaid expenses and other | $ 6.1 | $ 6.1 | |||||||
Accrued Liabilities [Member] | Deferred Purchase Consideration [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Payments to Acquire Businesses, Gross | $ 200 |
Long-Term Obligations and Oth_7
Long-Term Obligations and Other Short-Term Borrowings Fair Value Measurements of Financial Instruments - Carrying Amounts and Estimated Fair Value of Financial Instruments (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Jun. 30, 2018 |
Carrying Value [Member] | ||
Fair Value Measurements Of Financial Instruments [Line Items] | ||
Debt Instrument, Fair Value Disclosure | $ 2,279.1 | $ 2,721.3 |
Estimate of Fair Value Measurement [Member] | ||
Fair Value Measurements Of Financial Instruments [Line Items] | ||
Debt Instrument, Fair Value Disclosure | 2,252.2 | 2,653.9 |
Fair Value, Inputs, Level 1 [Member] | Euro-denominated 4.75% Senior Notes due 2024 | Carrying Value [Member] | ||
Fair Value Measurements Of Financial Instruments [Line Items] | ||
Debt Instrument, Fair Value Disclosure | 442.3 | 438.4 |
Fair Value, Inputs, Level 1 [Member] | Euro-denominated 4.75% Senior Notes due 2024 | Estimate of Fair Value Measurement [Member] | ||
Fair Value Measurements Of Financial Instruments [Line Items] | ||
Debt Instrument, Fair Value Disclosure | 466.1 | 457.6 |
Fair Value, Inputs, Level 1 [Member] | U.S. dollar-denominated 4.875% Senior Notes due 2026 | Carrying Value [Member] | ||
Fair Value Measurements Of Financial Instruments [Line Items] | ||
Debt Instrument, Fair Value Disclosure | 444 | 443.8 |
Fair Value, Inputs, Level 1 [Member] | U.S. dollar-denominated 4.875% Senior Notes due 2026 | Estimate of Fair Value Measurement [Member] | ||
Fair Value Measurements Of Financial Instruments [Line Items] | ||
Debt Instrument, Fair Value Disclosure | 425.1 | 428.3 |
Fair Value, Inputs, Level 2 [Member] | Term Loan Three Facility Dollar Denominated [Member] | Carrying Value [Member] | ||
Fair Value Measurements Of Financial Instruments [Line Items] | ||
Debt Instrument, Fair Value Disclosure | 1,392.8 | 1,839.1 |
Fair Value, Inputs, Level 2 [Member] | Term Loan Three Facility Dollar Denominated [Member] | Estimate of Fair Value Measurement [Member] | ||
Fair Value Measurements Of Financial Instruments [Line Items] | ||
Debt Instrument, Fair Value Disclosure | $ 1,361 | $ 1,768 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Earnings Per Share [Abstract] | ||
Net earnings/(loss) | $ (14.4) | $ 3.8 |
Weighted average shares outstanding | 142,149,315 | 125,713,246 |
Dilutive securities issuable-stock plans | 0 | 2,071,275 |
Total weighted average diluted shares outstanding | 142,149,315 | 127,784,521 |
Earnings Per Share, Basic | $ (0.10) | $ 0.03 |
Earnings Per Share, Diluted | $ (0.10) | $ 0.03 |
Earnings Per Share Earnings P_2
Earnings Per Share Earnings Per Share - Additional Details (Details) - shares shares in Millions | 3 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Employee Stock Option [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 2.4 | |
Restricted Stock Units (RSUs) [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 2.3 | |
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 | 0.3 | |
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 | 0.5 |
Other Income and Expense (Detai
Other Income and Expense (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | |||
Other Income and Expenses [Abstract] | ||||
Debt refinancing costs | 4.2 | [1] | 0 | |
Foreign Currency (gains) and losses | [2] | $ 1.7 | $ 5.7 | |
Other | (0.2) | (0.5) | ||
Other expense/(income), net | [3] | $ 5.7 | $ 5.2 | |
[1] | The expense in the three months ended September 30, 2018 includes a write-off of $4.2 million of previously capitalized financing charges related to the Company's U.S. dollar term loan under its senior secured credit facility. | |||
[2] | Foreign currency remeasurement (gains) and losses include both cash and non-cash transactions. | |||
[3] | Amounts for the three months ended September 30, 2018 include a write-off of $4.2 million of previously capitalized financing charges related to the Company's U.S. dollar term loan under its senior secured credit facility and for the three months ended September 30, 2017 were primarily driven by foreign currency remeasurement losses. Refer to Note 8, Other Expense/(Income). |
Restructuring and Other Restr_3
Restructuring and Other Restructuring and Other Costs (Details) - USD ($) $ in Millions | 3 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Restructuring Cost and Reserve [Line Items] | ||
Total restructuring costs | $ 9.7 | $ 2.3 |
Other - customer claims net of insurance recoveries | 0 | (1.1) |
Restructuring and other | 9.7 | 1.2 |
Employee-related reorganization | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | 9.7 | 1.7 |
Facility exit and other costs | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | $ 0 | $ 0.6 |
Derivative Instruments and He_3
Derivative Instruments and Hedging Activities - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Jun. 30, 2018 | |
Derivative [Line Items] | |||
Total long-term debt | $ 2,279.1 | $ 2,721.3 | |
Unrealized foreign exchange gain/(loss) within other comprehensive income | (4.2) | $ (17.6) | |
Unrealized foreign exchange gain/(loss) within statement of operations | (2.5) | $ (13.4) | |
Net accumulated gain related to investment hedges | 43.4 | ||
Euro Denominated Debt Outstanding [Member] | |||
Derivative [Line Items] | |||
Total long-term debt | $ 803.4 |
Income Taxes U.S. Tax Reform (D
Income Taxes U.S. Tax Reform (Details) | 3 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
U.S. Tax Reform [Abstract] | ||
U.S. federal statutory income tax rate | 21.00% | 35.00% |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | Sep. 30, 2018 | Jun. 30, 2018 |
Income Tax Contingency [Line Items] | ||
Unrecognized Tax Benefits | $ 2.2 | |
Unrecognized Tax Benefits, Including Income Tax Penalties and Interest Accrued | 4.2 | $ 4.1 |
Unrecognized tax benefits that impact the effective income tax rate | 2.2 | 2.2 |
Accrued interest related to uncertain tax positions | 2 | 2 |
Interest and penalties subject to indemnification | 1.6 | 1.6 |
Former Owner [Member] | ||
Income Tax Contingency [Line Items] | ||
Unrecognized Tax Benefits Subject to Indemnification | $ 0.7 | $ 0.7 |
Employee Retirement Benefit P_3
Employee Retirement Benefit Plans - Components of Company's Net Periodic Benefit Costs (Detail) - USD ($) $ in Millions | 3 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Jun. 30, 2018 | ||
Components of net periodic benefit cost: | ||||
Service cost | $ 0.9 | $ 0.9 | ||
Interest cost | 1.9 | 1.8 | ||
Expected return on plan assets | (2.6) | (2.9) | ||
Amortization | [1] | 0.6 | 0.6 | |
Net amount recognized | 0.8 | $ 0.4 | ||
Estimated discounted value of future employer contributions | 39 | $ 39 | ||
Estimated annual cash contribution | $ 1.7 | |||
[1] | Amount represents the amortization of unrecognized actuarial gains/(losses). |
Equity and Accumulated Other Co
Equity and Accumulated Other Comprehensive Income (Loss) Equity (Details) - USD ($) $ / shares in Units, $ in Millions | Jul. 27, 2018 | Sep. 29, 2017 | Sep. 30, 2018 | Jun. 30, 2018 |
Equity [Abstract] | ||||
Common Stock, Shares Authorized | 1,000,000,000 | 1,000,000,000 | ||
Common Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 | $ 0.01 | |
Preferred Stock, Shares Authorized | 100,000,000 | 100,000,000 | ||
Preferred Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 | ||
Equity offering, sale of common stock | 11,400,000 | 7,400,000 | ||
Shares Issued, Price Per Share | $ 40.24 | $ 39.10 | ||
Equity offering, sale of common stock | $ 445.5 | $ 277.8 | $ 445.5 | |
Restricted Stock, Shares Issued Net of Shares for Tax Withholdings | 500,000 | |||
Stock Repurchase Program, Authorized Amount | $ 100 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Foreign currency translation adjustments: | ||
Net investment hedge | $ (4.2) | $ (17.6) |
Long-term intercompany loans | (3.3) | 13.5 |
Translation adjustments | (2.8) | 36.1 |
Total foreign currency translation adjustment, pretax | (10.3) | 32 |
Tax expense/(benefit) | (1.5) | (6.1) |
Total foreign currency translation adjustment, net of tax | (8.8) | 38.1 |
Net change in minimum pension liability | ||
Net gain/(loss) recognized during the period | 0.6 | 0.6 |
Total pension liability, pretax | 0.6 | 0.6 |
Tax expense/(benefit) | (0.2) | (0.2) |
Net change in minimum pension liability, net of tax | 0.4 | 0.4 |
Net change in available for sale investment [Abstract] | ||
Net gain/(loss) recognized during the period | 0 | (5.2) |
Total available for sale investment, pretax | 0 | (5.2) |
Tax expense/(benefit) | 0 | 1.8 |
Available for sale investments | $ 0 | $ (3.4) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (Loss)-Rollforward (Details) - USD ($) $ in Millions | 3 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Beginning Balance | $ (325.8) | |
Other comprehensive income/(loss) before reclassifications | (8.8) | |
Amounts reclassified from accumulated other comprehensive income/(loss) | 0.4 | |
Total foreign currency translation adjustment, net of tax | (8.8) | $ 38.1 |
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, after Tax | 0.4 | 0.4 |
Available for sale investments | 0 | (3.4) |
Other comprehensive income/(loss), net of tax | (8.4) | $ 35.1 |
Ending Balance | (334.2) | |
Accumulated Translation Adjustment [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Beginning Balance | (285.1) | |
Other comprehensive income/(loss) before reclassifications | (8.8) | |
Amounts reclassified from accumulated other comprehensive income/(loss) | 0 | |
Ending Balance | (293.9) | |
Accumulated Defined Benefit Plans Adjustment [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Beginning Balance | (39.6) | |
Other comprehensive income/(loss) before reclassifications | 0 | |
Amounts reclassified from accumulated other comprehensive income/(loss) | 0.4 | |
Ending Balance | (39.2) | |
Available-for-sale Securities [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Beginning Balance | (1.1) | |
Other comprehensive income/(loss) before reclassifications | 0 | |
Amounts reclassified from accumulated other comprehensive income/(loss) | 0 | |
Ending Balance | $ (1.1) |
Segment Information - Net Reven
Segment Information - Net Revenue and Segment Ebitda (Detail) - USD ($) $ in Millions | 3 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Net revenue | $ 551.8 | $ 543.9 | |
Segment EBITDA | 67.6 | 65.2 | |
Inter-segment revenue elimination | (9.8) | (11.8) | |
Total unallocated costs | [1] | (39.8) | (34) |
Softgel Technologies | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Net revenue | 199.2 | 219.7 | |
Segment EBITDA | 33.3 | 35.1 | |
Biologics and Specialty Drug Delivery | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Net revenue | 154.6 | 91.7 | |
Segment EBITDA | 26.5 | 8.7 | |
Oral Drug Delivery | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Net revenue | 130.1 | 134.6 | |
Segment EBITDA | 27.4 | 38.7 | |
Clinical Supply Services | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Net revenue | 77.7 | 109.7 | |
Segment EBITDA | $ 20.2 | $ 16.7 | |
[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: |
Segment Information Segment Inf
Segment Information Segment Information - Unallocated Costs (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | ||
Unallocated costs [Abstract] | |||
Impairment Charges And Gain Loss On Sale Of Assets | $ 2.9 | $ 0 | |
Stock-based compensation | 10 | 7 | |
Restructuring And Other Special Items | [1] | 13.2 | 12.3 |
Other income/(expense), net (b) | [2] | (5.7) | (5.2) |
Non Allocated Corporate Costs Net | 8 | 9.5 | |
Segment Reporting Information Unallocated Expense | [3] | $ 39.8 | $ 34 |
[1] | Restructuring and other special items include transaction and integration costs associated primarily with the acquisitions of Catalent Indiana and Juniper. | ||
[2] | Amounts for the three months ended September 30, 2018 include a write-off of $4.2 million of previously capitalized financing charges related to the Company's U.S. dollar term loan under its senior secured credit facility and for the three months ended September 30, 2017 were primarily driven by foreign currency remeasurement losses. Refer to Note 8, Other Expense/(Income). | ||
[3] | Unallocated costs include restructuring and special items, equity-based compensation, impairment charges, certain other corporate directed costs, and other costs that are not allocated to the segments as follows: |
Segment Information - Reconcili
Segment Information - Reconciliation of Earnings / (Loss) from Continuing Operations to Ebitda (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Segment Reporting [Abstract] | ||
Net earnings/(loss) | $ (14.4) | $ 3.8 |
Depreciation and amortization | 52.9 | 39 |
Interest expense, net | 28.1 | 24.3 |
Income tax expense | 1 | (1.9) |
EBITDA from operations | $ 67.6 | $ 65.2 |
Segment Information - Total Ass
Segment Information - Total Assets for Each Segment and Reconciling in Consolidated Financial Statements (Detail) - USD ($) $ in Millions | Sep. 30, 2018 | Jun. 30, 2018 |
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | $ 4,499.8 | $ 4,531.1 |
Softgel Technologies | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | 1,398.3 | 1,402 |
Biologics and Specialty Drug Delivery | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | 1,798 | 1,739.7 |
Oral Drug Delivery | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | 1,241.5 | 1,074.2 |
Clinical Supply Services | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | 617.3 | 613 |
Corporate and Eliminations [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | $ (555.3) | $ (297.8) |
Supplemental Balance Sheet In_3
Supplemental Balance Sheet Information - Inventory (Detail) - USD ($) $ in Millions | Sep. 30, 2018 | Jun. 30, 2018 |
Inventory, Net [Abstract] | ||
Raw materials and supplies | $ 158.2 | $ 137.1 |
Work-in-process | 47.5 | 42.3 |
Finished goods | 49.8 | 48.3 |
Total inventories, gross | 255.5 | 227.7 |
Inventory cost adjustment | (19.7) | (18.6) |
Inventories | $ 235.8 | $ 209.1 |
Supplemental Balance Sheet In_4
Supplemental Balance Sheet Information - Prepaid and Other Assets (Detail) - USD ($) $ in Millions | Sep. 30, 2018 | Jun. 30, 2018 |
Prepaid Expense and Other Assets, Current [Abstract] | ||
Prepaid expenses | $ 24.4 | $ 19.2 |
Spare parts supplies | 10.9 | 11.1 |
Prepaid income tax | 10 | 7.2 |
Non-U.S. value added tax | 17 | 12.5 |
Other current assets | 15.9 | 15.2 |
Prepaid expenses and other | $ 78.2 | $ 65.2 |
Supplemental Balance Sheet In_5
Supplemental Balance Sheet Information - Property and Equipment (Detail) - USD ($) $ in Millions | 3 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Jun. 30, 2018 | |
Property, Plant and Equipment, Net [Abstract] | |||
Land Buildings And Improvements | $ 946.1 | $ 928.1 | |
Machinery, equipment, and capitalized software | 1,020.5 | 988.1 | |
Furniture and fixtures | 15.2 | 14.9 | |
Construction in progress | 170.4 | 166.8 | |
Property, plant, and equipment, at cost | 2,152.2 | 2,097.9 | |
Accumulated depreciation | (864) | (827.3) | |
Property, plant, and equipment, net | 1,288.2 | $ 1,270.6 | |
Depreciation expense | $ 34.7 | $ 27.6 |
Supplemental Balance Sheet In_6
Supplemental Balance Sheet Information - Other Accrued Liabilities (Detail) - USD ($) $ in Millions | Sep. 30, 2018 | Jun. 30, 2018 |
Balance Sheet Related Disclosures [Abstract] | ||
Accrued employee-related expenses | $ 81.9 | $ 104.3 |
Restructuring accrual | 13.6 | 9.4 |
Accrued interest | 11.1 | 16.5 |
Contract liability | 105.7 | 100.9 |
Accrued income tax | 11.9 | 25.9 |
Other accrued liabilities and expenses | 49.8 | 55.9 |
Other accrued liabilities | $ 274 | $ 312.9 |