Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Sep. 30, 2019 | Nov. 01, 2019 | |
Cover page. | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2019 | |
Document Transition Report | false | |
Entity File Number | 001-36587 | |
Entity Registrant Name | Catalent, Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Address, State or Province | NJ | |
Entity Tax Identification Number | 20-8737688 | |
Entity Address, Address Line One | 14 Schoolhouse Road, | |
Entity Address, City or Town | Somerset, | |
Entity Address, Postal Zip Code | 08873 | |
City Area Code | (732) | |
Local Phone Number | 537-6200 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Title of 12(b) Security | Common Stock | |
Trading Symbol | CTLT | |
Security Exchange Name | NYSE | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Entity Central Index Key | 0001596783 | |
Current Fiscal Year End Date | --06-30 | |
Entity Common Stock, Shares Outstanding (shares) | 146,308,834 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Millions | 3 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Income Statement [Abstract] | ||
Net revenue | $ 664.7 | $ 551.8 |
Cost of sales | 487 | 403.3 |
Gross margin | 177.7 | 148.5 |
Selling, general, and administrative expenses | 142.8 | 115.5 |
Impairment charges and (gain)/loss on sale of assets | (0.2) | 2.9 |
Restructuring and other | 0.7 | 9.7 |
Operating earnings | 34.4 | 20.4 |
Interest expense, net | 36.3 | 28.1 |
Other (income)/expense, net | 4.9 | 5.7 |
Earnings from continuing operations, before income taxes | (6.8) | (13.4) |
Income tax expense | (6.9) | 1 |
Net earnings/(loss) | 0.1 | (14.4) |
Participating Securities, Distributed and Undistributed Earnings (Loss), Basic | (8.1) | 0 |
Net Income (Loss) Available to Common Stockholders, Basic | $ (8) | $ (14.4) |
Earnings Per Share, Basic | $ (0.05) | $ (0.10) |
Earnings Per Share, Diluted | $ (0.05) | $ (0.10) |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income / (Loss) - USD ($) $ in Millions | 3 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Other comprehensive income/(loss), net of tax | ||
Net earnings/(loss) | $ 0.1 | $ (14.4) |
Foreign currency translation adjustments | (21.8) | (8.8) |
Pension and other post-retirement adjustments | (0.3) | 0.4 |
Other comprehensive income/(loss), net of tax | (22.1) | (8.4) |
Comprehensive income/(loss) | $ (22) | $ (22.8) |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Sep. 30, 2019 | Jun. 30, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 243.4 | $ 345.4 |
Trade receivables, net | 647.9 | 693.1 |
Inventories | 250.7 | 257.2 |
Prepaid expenses and other | 124.8 | 100.1 |
Total current assets | 1,266.8 | 1,395.8 |
Property, plant, and equipment, net | 1,561.1 | 1,536.7 |
Other assets: | ||
Goodwill | 2,195.9 | 2,220.9 |
Other intangibles, net | 902.9 | 930.8 |
Deferred income taxes | 34.1 | 38.6 |
Other Assets, Noncurrent | 158.7 | 61.2 |
Total assets | 6,119.5 | 6,184 |
Current Liabilities: | ||
Debt, Current | 74.3 | 76.5 |
Accounts payable | 214 | 255.8 |
Other accrued liabilities | 327.5 | 338.4 |
Total current liabilities | 615.8 | 670.7 |
Long-term obligations, less current portion | 2,858.7 | 2,882.8 |
Pension liability | 139.6 | 143.6 |
Deferred income taxes | 70.5 | 74.4 |
Other liabilities | 179 | 124.3 |
Commitments and Contingencies (see Note 16) | 0 | 0 |
Total liabilities | 3,863.6 | 3,895.8 |
Temporary Equity, Carrying Amount, Attributable to Parent | 606.6 | 606.6 |
Common Stock, Value, Outstanding | 1.5 | 1.5 |
Preferred Stock, Value, Outstanding | 0 | 0 |
Additional paid in capital | 2,755.2 | 2,757.4 |
Accumulated deficit | (731.4) | (723.4) |
Accumulated other comprehensive income/(loss) | (376) | (353.9) |
Total shareholders' equity | 1,649.3 | 1,681.6 |
Total liabilities, redeemable preferred stock, and shareholders’ equity | $ 6,119.5 | $ 6,184 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2019 | Jun. 30, 2019 |
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) | 146,235,714 | 145,738,286 |
Common Stock, Shares, Outstanding | 146,235,714 | 145,738,286 |
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 | 650,000 | 650,000 |
Preferred Stock, Shares Outstanding | 0 | 0 |
Consolidated Statement of Chang
Consolidated Statement of Changes in Shareholder's Equity - USD ($) $ in Millions | Total | Common Stock | Additional Paid-in Capital | Accumulated Deficit | Accumulated Other Comprehensive Income/(Loss) |
Beginning Balance at Jun. 30, 2018 | $ 1,086.7 | $ 1.3 | $ 2,283.3 | $ (872.1) | $ (325.8) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Cumulative effect of change in accounting for ASC 606, net of tax | 15.1 | 15.1 | |||
Equity offering, sale of common stock | 445.5 | 0.1 | 445.4 | ||
Stock Issued During Period, Value, Stock Options Exercised | 0 | 0 | |||
Stock-based compensation | 10 | 10 | |||
Cash paid, in lieu of equity, for tax withholding | (5.1) | (5.1) | |||
Net earnings/(loss) | (14.4) | (14.4) | |||
Other comprehensive income/(loss), net of tax | (8.4) | (8.4) | |||
Ending Balance at Sep. 30, 2018 | 1,529.4 | 1.4 | 2,733.6 | (871.4) | (334.2) |
Beginning Balance at Jun. 30, 2019 | 1,681.6 | 1.5 | 2,757.4 | (723.4) | (353.9) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock Issued During Period, Value, Stock Options Exercised | 0 | ||||
Stock-based compensation | 16.6 | 16.6 | |||
Cash paid, in lieu of equity, for tax withholding | (18.1) | (18.1) | |||
Non-qualified stock | (0.7) | (0.7) | |||
Dividends, Preferred Stock | 8.1 | 8.1 | |||
Net earnings/(loss) | 0.1 | 0.1 | |||
Other comprehensive income/(loss), net of tax | (22.1) | (22.1) | |||
Ending Balance at Sep. 30, 2019 | $ 1,649.3 | $ 1.5 | $ 2,755.2 | $ (731.4) | $ (376) |
Consolidated Statement of Cha_2
Consolidated Statement of Changes in Shareholder's Equity Consolidated Statement of Changes in Shareholders' Equity (Parenthetical) - shares | 3 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning Balance - Common Stock Outstanding (shares) | 145,738,286 | |
Ending Balance - Common Stock Outstanding (shares) | 146,235,714 | |
Common Stock | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning Balance - Common Stock Outstanding (shares) | 145,738,300 | 133,423,600 |
Equity offering, sale of common stock | 11,431,400 | |
Share issuances related to stock-based compensation | 497,400 | 366,000 |
Ending Balance - Common Stock Outstanding (shares) | 146,235,700 | 145,221,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 3 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net earnings/(loss) | $ 0.1 | $ (14.4) |
Adjustments to reconcile earnings/(loss) from operations to net cash from operations: | ||
Depreciation and amortization | 60.6 | 52.9 |
Non-cash foreign currency transaction (gain)/loss, net | (0.1) | 2 |
Amortization and write-off of debt financing costs | 1.5 | 5.2 |
Asset impairments charges and (gain)/loss on sale of assets | (0.2) | 2.9 |
Derivative, Gain (Loss) on Derivative, Net | (8.9) | 0 |
Stock-based compensation | 16.6 | 10 |
Provision/(benefit) for deferred income taxes | (0.6) | 1.2 |
Provision for bad debts and inventory | 4.1 | 2.8 |
Change in operating assets and liabilities: | ||
Decrease/(increase) in trade receivables | 34.1 | 73.7 |
Decrease/(increase) in inventories | 0.2 | (21) |
Increase/(decrease) in accounts payable | (47.3) | (18.3) |
Other assets/accrued liabilities, net — current and non-current | (52.7) | (55.8) |
Net Cash Provided by (Used in) Operating Activities, Total | 25.2 | 41.2 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Acquisition of property and equipment and other productive assets | (73.5) | (38.3) |
Payment for acquisitions, net of cash acquired | (10.7) | (127.5) |
Payments to Acquire Investments | 0.7 | 0 |
Net cash (used in) investing activities | (84.9) | (165.8) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Net change in other borrowings | (2.5) | (4.5) |
Payments related to long-term obligations | (3.3) | (454.7) |
Dividends and Interest Paid | 11.9 | 0 |
Proceeds from sale of common stock, net | 0 | 445.5 |
Cash paid, in lieu of equity, for tax withholding | (18.1) | (5.1) |
Net cash (used in)/provided by financing activities | (35.8) | (18.8) |
Effect of foreign currency exchange on cash | (6.5) | (0.7) |
NET INCREASE/(DECREASE) IN CASH AND EQUIVALENTS | (102) | (144.1) |
CASH AND EQUIVALENTS AT BEGINNING OF PERIOD | 345.4 | 410.2 |
CASH AND EQUIVALENTS AT END OF PERIOD | 243.4 | 266.1 |
SUPPLEMENTARY CASH FLOW INFORMATION: | ||
Interest paid | 24.8 | 29.5 |
Income taxes paid, net | $ 12.7 | $ 14.8 |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 3 Months Ended |
Sep. 30, 2019 | |
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, 2019 are not necessarily indicative of the results that may be expected for the year ending June 30, 2020. The consolidated balance sheet at June 30, 2019 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, 2019 filed with the Securities and Exchange Commission (the “ SEC ” ). In fiscal 2020, 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 changed the components of three of its four operating segments: • Softgel and Oral Technologies, which includes formulation, development, and clinical and commercial manufacturing of soft capsules, or “softgels”, as well as large-scale manufacturing of oral solid dose forms, for pharmaceutical and consumer health markets, and supporting ancillary services; and • Biologics, which encompasses biologic cell-line and viral vector gene therapy development and manufacturing; formulation, development, and manufacturing for parenteral dose forms, including prefilled syringes, vials, and cartridges; and analytical development and testing services for large molecules; and • Oral and Specialty Delivery, which includes formulation, development, and small-to-medium scale manufacturing for most types of oral solid dose forms, including Zydis orally dissolving tablets; formulation, development, and manufacture of blow-fill-seal unit doses, metered dose inhalers, and nasal products; and analytical development and testing capabilities for small molecules. Each of these three segments, along with the Company's fourth segment, Clinical Supply Services, which remains unchanged, reports through a separate management team and ultimately reports to the Company's Chief Executive Officer, who is designated as the Chief Operating Decision Maker (“CODM”) for segment reporting purposes. The Company's operating segments are the same as its reporting segments. All prior-period comparative segment information has been restated to reflect the current reportable segments in accordance with Accounting Standards Codification ("ASC") 280, Segment Reporting , promulgated by the Financial Accounting Standards Board (the “FASB”). Reclassification Certain prior-period amounts were reclassified to conform to the current period presentation. As discussed below in “—Recent Financial Accounting Standards—Recently Adopted Accounting Standards” and in Note 15, Leases , contract assets previously presented in trade receivables, net are now presented in prepaid expenses and other. Foreign Currency Translation The financial statements of the Company’s operations are generally measured using the local currency as the functional currency. Adjustments to translate the assets and liabilities of operations outside the U.S. into U.S. dollars are accumulated as a component of other comprehensive income/(loss) utilizing period-end exchange rates. Since July 1, 2018, the Company has accounted 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 $0.5 million for the three months ended September 30, 2019 a nd 2018, 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 $13.8 million and $11.3 million for the three months ended September 30, 2019 and 2018 , respectively. Recent Financial Accounting Standards Recently Adopted Accounting Standards In February 2016, the FASB issued Accounting Standards Update ( “ ASU ”) 2016-02 , Leases (Topic 842) , which supersedes 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 became effective for public reporting entities in annual reporting periods beginning after December 15, 2018 and interim periods within those fiscal years. The guidance requires adoption of the new standard using the modified retrospective approach. The Company adopted the guidance on July 1, 2019 and elected the transition method that allows for the application of the standard at the adoption date rather than at the beginning of the earliest comparative period presented in the financial statements. The Company also elected the package of practical expedients; as a result, it did not reassess: (i) whether any expired or existing contract is or contains a lease, (ii) whether any expired or existing lease requires capitalization under the new guidance, and (iii) the initial direct cost for any existing lease. The Company also elected (x) not to reassess lease terms using hindsight and (y) to combine lease and non-lease components within a single lease agreement. Upon adoption, the Company recognized $46 million of lease liabilities and a corresponding amount for right-of-use assets on its consolidated balance sheet. The adoption of the guidance did not have any effect on the Company’s consolidated statements of operations or cash flows. Refer to Note 15, Leases for further discussion of the Company's lease accounting policy. New Accounting Standards Not Adopted as of September 30, 2019 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 retrospective or prospective application. The Company does not expect the adoption of this guidance to have a material impact on its consolidated financial statements. In August 2018, the FASB issued ASU 2018-13 , Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirement for Fair Value Measurement , which changes the disclosure requirements on fair value measurements in Topic 820. The guidance eliminates certain disclosure requirements that are no longer considered cost beneficial and adds new disclosure requirement for Level 3 fair value measurements. The ASU will be effective for fiscal years beginning after December 15, 2019 and interim periods within those fiscal years. The Company does not expect the adoption of this guidance to have a material impact 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 known as Credit Expected Credit Losses ( “ CECL ” |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Sep. 30, 2019 | |
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 tables allocate revenue, for the three months ended September 30, 2019 and September 30, 2018, by type of activity and reporting segment (in millions): Three months ended September 30, 2019 Softgel & Oral Technologies Biologics Oral & Specialty Delivery Clinical Supply Services Total Manufacturing & commercial product supply $ 242.0 $ 64.4 $ 76.0 $ — $ 382.4 Development services 21.7 124.2 56.6 — 202.5 Clinical supply services — — — 84.6 84.6 Total $ 263.7 $ 188.6 $ 132.6 $ 84.6 $ 669.5 Inter-segment revenue elimination (4.8) Combined net revenue $ 664.7 Three months ended September 30, 2018 Softgel & Oral Technologies Biologics Oral & Specialty Delivery Clinical Supply Services Total Manufacturing & commercial product supply $ 218.2 $ 52.0 $ 62.2 $ — $ 332.4 Development services 21.9 73.7 48.6 — 144.2 Clinical supply services — — — 77.7 77.7 Total $ 240.1 $ 125.7 $ 110.8 $ 77.7 $ 554.3 Inter-segment revenue elimination (2.5) 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, 2019 Three Months Ended September 30, 2018 United States $ 362.3 $ 264.4 Europe 210.1 196.4 International Other 110.9 107.6 Elimination of revenue attributable to multiple locations (18.6) (16.6) Total $ 664.7 $ 551.8 Development Services Revenue Development services contracts generally take the form of short-term, fee-for-service arrangements. Performance obligations vary, but frequently include biologic cell-line development, performing formulation, analytical stability, or other services related to product development, and providing manufacturing services for products that are under development or otherwise not intended for commercial sale. The transaction prices for these arrangements are fixed and include amounts stated in the contracts for each promised service, and each service is generally considered to be a separate performance obligation. The Company recognizes revenue over time because there is no alternative use to the Company for the asset created and the Company has an enforceable right to payment for performance completed as of that date. The Company measures progress toward the completion of its performance obligations satisfied over time based on the nature of the services to be performed. For certain types of arrangements related to biologic cell-line development, revenue is recognized over time and measured using an output method based on the completion of tasks and activities that are performed to satisfy a performance obligation. For all other types of arrangements, revenue is recognized over time and measured using an input method based on effort expended. Each of these methods provides an appropriate depiction of the Company’s progress toward fulfilling its performance obligations for its respective arrangement. In certain development services arrangements that require a portion of the contract consideration to be received in advance at the commencement of the contract, such advance payment is initially recorded as a contract liability. The Company allocates consideration to each performance obligation using the “relative standalone selling price” as defined under ASC 606. Generally, the Company utilizes observable standalone selling prices in its allocations of consideration. If observable standalone selling prices are not available, the Company estimates the applicable standalone selling price using an adjusted market assessment approach, representing the amount that the Company believes the market is willing to pay for the applicable service. 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. 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. In these arrangements, the customer typically owns and supplies the active pharmaceutical ingredient, or API, that is used in the manufacturing process. The contract generally includes the terms of the manufacturing services and related product quality assurance procedures to comply with regulatory requirements. Due to the regulated nature of the Company’s business, these contract terms are highly interdependent and, therefore, are considered to be a single combined performance obligation. The transaction price is generally stated in the agreement as a fixed price per unit, with no contractual provision for a refund or price concession. Control is transferred to the customer over time, creating a corresponding right to recognize the related revenue, because there is no alternative use to the Company for the asset created and the Company has an enforceable right to payment for performance completed as of that date. Progress is measured based on the units of product that have successfully completed the contractually required product quality assurance process, as the conclusion of that process generally defines the time when the applicable contract and the related regulatory requirements permit the customer to exercise control over the product’s disposition. The customer is typically responsible for arranging the shipping and handling of product following quality assurance. Payment is typically due 30 to 90 days after the goods are shipped as requested by the customer, based on the payment terms set forth in the applicable customer agreement. Clinical Supply Services Revenue Clinical supply services contracts generally take the form of fee-for-service arrangements. 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 input method measure of progress based on effort expended by the Company. In other arrangements, revenue is recognized at the point in time when control transfers, which occurs upon either the delivery of the related output of the service to the customer or the completion of quality testing with respect to the product, and the Company has an enforceable 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. Licensing Revenue The Company occasionally enters into arrangements with its customers that include licenses of functional intellectual property, including patents, or other intangible property (“out-licensing”). Revenue from such arrangements are within the scope of ASC 606. The Company does not have any material license arrangement that contains more than one performance obligation. The terms of such out-licensing arrangements include the license of functional intellectual or intangible property (primarily drug formulae) and typically provide for payment by the licensee of one or more of the following: non-refundable, up-front license fees or royalties on net sales of licensed products. The Company recognizes revenue from nonrefundable, up-front license fees when the licensed intellectual property is made available for the customer’s use and benefit, which is generally at the inception of the arrangement. Royalty payments from such arrangements are recognized when subsequent sale or usage of an item subject to the royalty occurs and the performance obligation to which royalty relates is satisfied. Contract Liabilities Contract liabilities relate to cash consideration that the Company receives in advance of satisfying the related performance obligations. Changes in the contract liabilities balance during the three months ended September 30, 2019 are as follows: (Dollars in millions) Contract liability Balance at June 30, 2019 $ 177.4 Balance at September 30, 2019 $ 182.5 Revenue recognized in the period from: Amounts included in contract liability at the beginning of the period $ 42.8 |
Business Combinations
Business Combinations | 3 Months Ended |
Sep. 30, 2019 | |
Business Combinations [Abstract] | |
Business Combination Disclosure [Text Block] | BUSINESS COMBINATIONS Novavax Transaction Overview On July 31, 2019, Catalent Maryland, Inc. (formerly Paragon Bioservices, Inc., “Paragon”), which contains the Company's gene therapy development and manufacturing related businesses, acquired from Novavax Inc. (“Novavax”) certain property, plant and equipment, rights to two facilities under leases in southern Maryland, certain raw material inventory, and the right to assume the employment of more than 100 Novavax employees located a t those facilities in the areas of operations, quality, and product development, among other things. Paragon made a cash payment of $18.3 million in connection with the acquisition. The Company considers the transaction to be a business combination under ASC 805, Business Combinations and accounted for it using the acquisition method of accounting. The Company estimated fair values at the acquisition date for the allocation of consideration to the acquired items. The aggregate purchase consideration was funded with cash on hand. As a result of the preliminary fair value allocations, the Company recognized property, plant, and equipment of $15.6 million and $0.3 million for inventory. The remainder of the fair value, $2.4 million, was allocated to goodwill, primarily the value of the existing organized and trained work force. The Novavax transaction expanded Paragon’s early-development capabilities and supplemented Paragon’s pool of experienced biologics operatives to support its growth. Paragon Bioservices, Inc. Acquisition On May 17, 2019, the Company acquired 100% of the equity interest in Paragon for an aggregate nominal purchase price of $1,192.1 million, which was subject to adjustment (as further discussed below), in order to enhance the Company’s end-to-end integrated biopharmaceutical solutions . Paragon is a leading contract development and manufacturing organization (“CDMO”) focused on the development and manufacturing of cutting-edge biopharmaceuticals, including viral vectors used in gene therapies. The Company estimated fair values at the acquisition date for the preliminary allocation of consideration to the net tangible and intangible assets acquired and liabilities assumed. During the measurement period ending no later than one year after the acquisition date, the Company will continue to obtain information to assist in finalizing the fair values of the net assets acquired, which may differ materially from these preliminary estimates. Amounts subject to finalization include working capital adjustments and income taxes. If any measurement period adjustment is material, the Company will record such adjustment, including any related impact on net income, in the reporting period in which the adjustment is determined. During the first quarter the Company received an escrow refund of $7.6 million related to as assessment of various asset and liability balances and expenses as of the acquisition date. The adjustment is reflected in both goodwill and cash (part of other net assets). This adjustment had no impact on the consolidated statement of operations. There was no other change in these balances related to the acquisition noted during this period. The Company accounted for the transaction using the acquisition method of accounting for business combinations, in accordance with ASC 805. Pending Acquisition as of September 30, 2019 On June 15, 2019, Operating Company and Bristol-Myers Squibb S.r.l. (“BMS”), entered into a Sale and Purchase Agreement for the acquisition of BMS’s oral solid, biologics, and sterile product manufacturing and packaging facility in Anagni, Italy (“Anagni”) for consideration of €45.0 million , subject to adjustment, plus the value of initiating certain services to aid the transition from BMS to Company ownership. At the closing of this acquisition, BMS will enter into a five-year agreement with respect to the continuing supply by the Company of certain products currently produced at the Anagni facility. Adding Anagni to the Company’s global network will expand its biologics drug product offering in Europe, which the Company expects will enable it to both capture a larger segment of the biologics market in that region and complement its existing European sterile fill/finish capabilities. The acquisition will also add oral solid manufacturing and packaging capacity to augment the Company's current capabilities in Europe. |
Goodwill
Goodwill | 3 Months Ended |
Sep. 30, 2019 | |
Goodwill Disclosure [Abstract] | |
Goodwill | GOODWILL The following table summarizes the changes between June 30, 2019 and September 30, 2019 in the carrying amount of goodwill in total and by reporting segment: (Dollars in millions) Softgel & Oral Technologies Biologics Oral & Specialty Delivery Clinical Supply Services Total Balance at June 30, 2019 $ 409.2 $ 1,320.0 $ 340.3 $ 151.4 $ 2,220.9 Additions — 2.4 — — 2.4 Reallocation 108.1 (124.3) 16.2 — — Other (1.6) (7.4) 1.1 — (7.9) Foreign currency translation adjustments (10.2) (1.6) (3.8) (3.9) (19.5) Balance at September 30, 2019 $ 505.5 $ 1,189.1 $ 353.8 $ 147.5 $ 2,195.9 The addition to goodwill in the Biologics reporting segment relates to the Novavax transaction. See Note 3, Business Combinations . The reallocation of goodwill relates to the adjustments to the Company’s reporting segments, as a result of which certain assets moved from the Biologics reporting segment to the Oral and Specialty Delivery reporting segment, and other assets moved from the Oral and Specialty Delivery reporting segment to the Softgel and Oral Technologies reporting segment. The Company recorded no impairment charge to goodwill in the current period. |
Definite Lived Long-Lived Asset
Definite Lived Long-Lived Assets | 3 Months Ended |
Sep. 30, 2019 | |
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, 2019 and June 30, 2019 are as follows: (Dollars in millions) Weighted Average Life Gross Carrying Value Accumulated Amortization Net Carrying Value September 30, 2019 Amortized intangibles: Core technology 18 years $ 133.9 $ (77.2) $ 56.7 Customer relationships 14 years 974.4 (195.2) 779.2 Product relationships 11 years 269.4 (210.0) 59.4 Other 4 years 9.4 (1.8) 7.6 Total intangible assets $ 1,387.1 $ (484.2) $ 902.9 (Dollars in millions) Weighted Average Life Gross Carrying Value Accumulated Amortization Net Carrying Value June 30, 2019 Amortized intangibles: Core technology 18 years $ 168.2 $ (105.6) $ 62.6 Customer relationships 14 years 981.1 (182.5) 798.6 Product relationships 11 years 275.5 (213.9) 61.6 Other 4 years 9.3 (1.3) 8.0 Total intangible assets $ 1,434.1 $ (503.3) $ 930.8 The decreases in the gross carrying value of core technology, customer relationships, and product relationships as of September 30, 2019 compared to the prior-year period are associated with the sale of an intangible property licensing right and the reclassification of intangible assets to other assets related to the sale of the Company’s facility in Braeside, Australia. Amortization expense was $21.5 million and $18.2 million for the three months ended September 30, 2019 and 2018, respectively. Future amortization expense for the next five fiscal years is estimated to be: (Dollars in millions) Remainder 2021 2022 2023 2024 2025 Amortization expense $ 62.9 $ 85.9 $ 85.2 $ 84.7 $ 84.5 $ 83.9 |
Long-Term Obligations and Other
Long-Term Obligations and Other Short-Term Borrowings | 3 Months Ended |
Sep. 30, 2019 | |
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 consisted of the following at September 30, 2019 and June 30, 2019: (Dollars in millions) Maturity as of September 30, 2019 September 30, 2019 June 30, 2019 Senior secured credit facilities Term loan facility U.S. dollar-denominated May 2026 $ 934.4 $ 936.2 Term loan facility euro-denominated May 2024 332.7 346.8 Revolving credit facility May 2024 — — Euro-denominated 4.75% Senior Notes due 2024 December 2024 411.9 428.3 U.S. dollar-denominated 4.875% Senior Notes due 2026 January 2026 444.8 444.6 U.S. dollar-denominated 5.00% Senior Notes due 2027 July 2027 492.4 492.1 Deferred purchase consideration October 2021 145.1 143.9 Capital lease obligations 2020 to 2044 166.8 167.3 Other obligations 2019 to 2024 4.9 0.1 Total 2,933.0 2,959.3 Less: Current portion of long-term obligations and other short-term 74.3 76.5 Long-term obligations, less current portion $ 2,858.7 $ 2,882.8 Senior Secured Credit Facilities and Fourth Amendment In May 2019, Operating Company completed a fourth amendment (the “Fourth Amendment”) to its Amended and Restated Credit Agreement, dated as of May 20, 2014 (as amended through the Fourth Amendment, the “Credit Agreement”). As part of the Fourth Amendment, Operating Company borrowed $950 million aggregate principal amount of incremental term B loans (the “Incremental Dollar Term B-2 Loans”) and replaced the existing revolving credit commitments of $200 million with new revolving credit commitments of $550 million (the “Incremental Revolving Credit Commitments”). The Incremental Dollar Term B-2 Loans will mature at the earlier of (1) May 17, 2026 and (2) the 91st day prior to the maturity of Operating Company’s 4.75% senior unsecured notes due 2024 (the “Euro Notes”) or a permitted refinancing thereof, if on such 91st day any of the Euro Notes remains outstanding. There is a prepayment premium of 1.00% to any principal amount of the Incremental Dollar Term B-2 Loans that is subject to a repricing event during the first six-month period after the Fourth Amendment effective date. The Incremental Revolving Credit Commitments constitute revolving credit commitments under the Credit Agreement. The maturity date for the revolving loans is now the earlier of (1) May 17, 2024 and (2) the 91st day prior to the maturity of any dollar term loans or euro term loans under the Credit Agreement, or any permitted refinancing thereof, if on such 91st day any of such dollar term loans or euro term loans remains outstanding. Under the Credit Agreement, the applicable rate for U.S. dollar-denominated term loans, including the Incremental Dollar Term B-2 Loans, is LIBOR (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 is initially 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 euro-denominated term loans will mature in May 2024. Euro-denominated 4.75% Senior Notes due 2024 In December 2016, Operating Company completed a private offering of €380.0 million aggregate principal amount of 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 U.S. 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 In October 2017, Operating Company completed a private offering of $450.0 million aggregate principal amount of 4.875% Senior Notes due 2026 (the “ USD 2026 Notes ” ). The USD 2026 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 2026 Notes were offered in the United States to qualified institutional buyers in reliance on Rule 144A under the Securities Act and outside the U.S. only to non-U.S. investors pursuant to Regulation S under the Securities Act. The USD 2026 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. U.S. dollar-denominated 5.00% Senior Notes due 2027 In June 2019, Operating Company completed a private offering of $500.0 million aggregate principal amount of 5.00% Senior Notes due 2027 (the “ USD 2027 Notes ” and, together with the USD 2026 Notes, the “ USD Notes ”; and the USD Notes and Euro Notes together, the “Senior Notes ” ). The USD 2027 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 2027 Notes were offered in the U.S to qualified institutional buyers in reliance on Rule 144A under the Securities Act and outside the U.S only to non-U.S. investors pursuant to Regulation S under the Securities Act. The USD 2027 Notes will mature on July 15, 2027, bear interest at the rate of 5.00% per annum, and are payable semi-annually in arrears on January 15 and July 15 of each year, beginning on January 15, 2020. Deferred Purchase Consideration In connection with the acquisition of Catalent Indiana LLC in October 2017, $200.0 million of the $950.0 million aggregate nominal purchase price is payable in $50.0 million installments, on each of the first four anniversaries of the closing date. The Company paid the first installment in October 2018. The balance of the deferred purchase consideration was recorded at fair value as of the acquisition date, with the difference between the remaining nominal amount and the fair value treated as imputed interest. 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, 2019, 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 Senior Notes The various indentures governing the Senior Notes (collectively, the “ Indentures ” ) contain 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 Senior Notes or the applicable Trustee 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, 2019, Operating Company was in compliance with all material covenants under the Indentures. Fair Value of Debt Instruments The estimated fair values of the senior secured credit facilities and Senior Notes are classified as Level 2 in the fair value hierarchy and are calculated by using discounted cash flow models with the market interest rate as a significant input. The carrying amounts and the estimated fair values of financial instruments as of September 30, 2019 and June 30, 2019 are as follows: September 30, 2019 June 30, 2019 (Dollars in millions) Fair Value Measurement Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value Euro-denominated 4.75% senior notes due Level 2 $ 411.9 $ 425.9 $ 428.3 $ 454.2 U.S. dollar-denominated 4.875% senior notes Level 2 444.8 460.9 444.6 457.0 U.S. dollar-denominated 5.00% senior notes Level 2 492.4 523.4 492.1 509.0 Senior secured credit facilities & other Level 2 1,583.9 1,550.1 1,594.3 1,526.0 Total $ 2,933.0 $ 2,960.3 $ 2,959.3 $ 2,946.2 |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | EARNINGS PER SHARE The Company computes earnings per share (“EPS”) of the Company's common stock, par value $0.01 (the "Common Stock") using the two-class method required due to the participating nature of the Series A Preferred Stock (as defined and discussed in Note 14, Redeemable Preferred Stock—Series A Preferred ). Diluted net income per share is computed using the weighted average number of shares of Common Stock outstanding plus the weighted average number of shares of Common Stock that would be issued assuming exercise or conversion of all potentially dilutive instruments. Dilutive securities having an anti-dilutive effect on diluted net income per share are excluded from the calculation. The dilutive effect of the securities that are issuable under the Company’s equity incentive plans are reflected in diluted earnings per share by application of the treasury stock method. The reconciliations between basic and diluted earnings per share attributable to Catalent common shareholders for the three months ended September 30, 2019 and 2018, respectively, are as follows (in millions, except share and per share data): Three Months Ended (Dollars in millions, except per share data) 2019 2018 Net earnings/(loss) $ 0.1 $ (14.4) Less: Series A Preferred Stock dividend (8.1) — Net earnings/(loss) attributable to common shareholders $ (8.0) $ (14.4) Weighted average shares outstanding 145,663,115 142,149,315 Total weighted average diluted shares outstanding 145,663,115 142,149,315 Earnings per share: Basic $ (0.05) $ (0.10) Diluted $ (0.05) $ (0.10) |
Other Income and Expense Other
Other Income and Expense Other Income / Expense | 3 Months Ended |
Sep. 30, 2019 | |
Other Income and Expenses [Abstract] | |
Other Income and Other Expense Disclosure [Text Block] | OTHER (INCOME)/EXPENSE, NET The components of other (income)/expense, net for the three months ended September 30, 2019 and 2018 are as follows: Three Months Ended (Dollars in millions) 2019 2018 Other (income)/expense, net Debt refinancing costs (1) $ 0.1 $ 4.2 Foreign currency (gains) and losses (2) (3.1) 1.7 Other (3) 7.9 (0.2) Total other (income)/expense, net $ 4.9 $ 5.7 (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) Included within Other for the three months ended September 30, 2019 are unrealized losses of $8.9 million related to the fair value of the derivative liability associated with the Series A Preferred Stock. |
Restructuring and Other Restruc
Restructuring and Other Restructuring and Other Costs (Notes) | 3 Months Ended |
Sep. 30, 2019 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Activities Disclosure [Text Block] | RESTRUCTURING AND OTHER 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. The restructuring costs for the three months ended September 30, 2019 and 2018 were $0.7 million and $9.7 million, respectively. |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 3 Months Ended |
Sep. 30, 2019 | |
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 operations outside the U.S. 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, 2019, the Company had euro-denominated debt outstanding of $744.6 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 euro-denominated debt translation gains or losses are reported in the consolidated statement of operations. The following table includes net investment hedge activity during the three months ended September 30, 2019 and 2018. Three Months Ended (Dollars in millions) 2019 2018 Unrealized foreign exchange gain/(loss) within other comprehensive income $ 20.3 $ (4.2) Unrealized foreign exchange gain/(loss) within statement of operations $ 9.7 $ (2.5) The net accumulated gain of the instrument designated as a hedge as of September 30, 2019 within other comprehensive income/(loss) was approximately $80.1 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. 2019 Derivative Liability As discussed in Note 14, Redeemable Preferred Stock—Series A Preferred, in May 2019, the Company issued shares of Series A Preferred Stock in exchange for net proceeds of $646.3 million after taking into account the $3.7 million issuance cost. The dividend rate used to determine the amount of the quarterly dividend payable on shares of the Series A Preferred Stock is subject to adjustment so as to provide holders of shares of Series A Preferred Stock with certain protections against a decline in the trading price of shares of Common Stock. The Company determined that this feature should be accounted for as a derivative liability, since the feature fluctuates inversely to changes in the trading price and is also linked to the performance of the S&P 500 stock index. Accordingly, the Company bifurcated the adjustable dividend feature from the remainder of the Series A Preferred Stock and accounted for this feature as a derivative liability at fair value. The Company will recognize changes in the fair value of the derivative liability in the consolidated statements of operations for each reporting period. The fair value was determined using an option pricing methodology, specifically both a Monte Carlo simulation and a binomial lattice model. The methodology incorporates the terms and conditions of the preferred stock arrangement, historical stock price volatility, the risk-free interest rate, a credit spread based on the yield indexes of high-yield bonds, and the trading price of shares of the Common Stock. The calculation of the estimated fair value of the derivative liability is highly sensitive to changes in unobservable inputs, such as the expected volatility and the Company's specific credit spread. The Company recorded a loss of $8.9 million on the change in the estimated fair value of the derivative liability from July 1, 2019 through September 30, 2019, which is reflected as a non-operating expense in the consolidated statements of operations. The fair value of the derivative liability as of September 30, 2019 was $35.7 million . The fair value is classified as Level 3 in the fair value hierarchy due to the significant management judgment required for the assumptions underlying the calculation of value. The following table sets forth a summary of changes in the estimated fair value of the derivative liability: ( Dollars in millions) Fair Value Measurements of Balance at July 1, 2019 $ 26.8 Change in estimated fair value of Series A Preferred Stock derivative liability 8.9 Balance at September 30, 2019 $ 35.7 |
Income Taxes
Income Taxes | 3 Months Ended |
Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES The Company accounts for income taxes in accordance with ASC 740, Income Taxes . 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, the tax impact of changes in the Company's unrecognized tax benefit reserves and the tax impact of certain equity compensation. 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 both September 30, 2019 and June 30, 2019, $0.6 million of unrecognized tax benefit is 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, 2019 and June 30, 2019, the Company had a total of $5.3 million and $5.2 million, respectively, of uncertain tax positions (including accrued interest and penalties). As of both of these dates, $3.8 million represent the amount of unrecognized tax benefits, which, if recognized, would favorably affect the effective income tax rate. Interest and penalties related to uncertain tax positions are recognized as a component of income tax expense. As of September 30, 2019 and June 30, 2019, the Company has approximately $1.5 million and $1.4 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 $1.4 million and $1.3 million, respectively. The Company recorded a benefit for income taxes for the three months ended September 30, 2019 of $6.9 million relative to losses from operations before income taxes of $6.8 million. The amount of this benefit is primarily driven by U.S. income tax deductions, also referred to as a windfall benefit, related to the Company’s equity compensation expense. The Company recorded a provision for income taxes for the three months ended September 30, 2018 of $1.0 million relative to losses from operations before income taxes of $13.4 million. The income tax provision for the current period is not comparable to the same period of the prior year due to changes in pretax income over many jurisdictions and the impact of discrete items. Generally, fluctuations in the effective tax rate are primarily due to changes in our geographic pretax income resulting from our business mix and changes in the tax impact of permanent differences, special items, certain equity related compensation and other discrete tax items, which may have unique tax implications depending on the nature of the item. |
Employee Retirement Benefit Pla
Employee Retirement Benefit Plans | 3 Months Ended |
Sep. 30, 2019 | |
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) 2019 2018 Components of net periodic benefit cost: Selling, general, and administrative expenses: Service cost $ 0.6 $ 0.9 Other (income)/expense, net: Interest cost 1.7 1.9 Expected return on plan assets (2.7) (2.6) Amortization (1) 0.8 0.6 Net amount recognized $ 0.4 $ 0.8 (1) Amount represents the amortization of unrecognized actuarial gains/(losses). |
Equity and Accumulated Other Co
Equity and Accumulated Other Comprehensive Income (Loss) | 3 Months Ended |
Sep. 30, 2019 | |
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, and 100,000,000 shares of preferred stock, par value $0.01 per share. Under the Company's 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 a public offering of its Common Stock (the “ 2018 Equity Offering ”) , in which the Company sold 11.4 million shares, including the underwriters' over-allotment option, of 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 Operating Company's U.S. dollar-denominated term loans. Outstanding Stock Shares of Common Stock outstanding include shares of unvested restricted stock. Unvested restricted stock included in reportable shares outstanding was 0.5 million shares as of September 30, 2019. Shares of unvested restricted stock are excluded from the calculation of basic weighted average shares outstanding, but their dilutive impact is added back in the calculation of diluted weighted average shares outstanding, except when the effect would be anti-dilutive. The Company has 650,000 shares of its preferred stock outstanding. See Note 14, Redeemable Preferred Stock—Series A Preferred. 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 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, 2019. 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, 2019 and 2018 are presented below. Three Months Ended (Dollars in millions) 2019 2018 Foreign currency translation adjustments: Net investment hedge $ 20.3 $ (4.2) Long-term intercompany loans (6.5) (3.3) Translation adjustments (32.3) (2.8) Total foreign currency translation adjustment, pretax (18.5) (10.3) Tax expense/(benefit) 3.3 (1.5) Total foreign currency translation adjustment, net of tax $ (21.8) $ (8.8) 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) (0.3) 0.2 Net change in minimum pension liability, net of tax $ (0.3) $ 0.4 For the three months ended September 30, 2019, 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 Other Total Balance at June 30, 2019 $ (303.7) $ (49.1) $ (1.1) $ (353.9) Other comprehensive income/(loss) before (21.8) — — (21.8) Amounts reclassified from accumulated other — (0.3) — (0.3) Net current period other comprehensive income/(loss) (21.8) (0.3) — (22.1) Balance at September 30, 2019 $ (325.5) $ (49.4) $ (1.1) $ (376.0) |
Redeemable Preferred Stock - Se
Redeemable Preferred Stock - Series A Preferred | 3 Months Ended |
Sep. 30, 2019 | |
Equity [Abstract] | |
Preferred Stock [Text Block] | REDEEMABLE PREFERRED STOCK — SERIES A PREFERRED During May 2019, the Company designated 1,000,000 shares of its preferred stock, par value $0.01, as its “Series A Convertible Preferred Stock” (the “Series A Preferred Stock”), pursuant to a certificate of designation of preferences, rights, and limitations (as amended, the “Certificate of Designation”) filed with the Delaware Secretary of State, and issued and sold 650,000 shares of the Series A Preferred Stock for an aggregate purchase price of $650.0 million , to affiliates of Leonard Green & Partners, L.P. (the “Series A Investors”), each share having an initial stated value of $1,000 (as such value may be adjusted in accordance with the terms of the Certificate of Designation, the “Stated Value”). The Series A Preferred Stock ranks senior to the Company’s Common Stock with respect to dividend rights and rights upon the voluntary or involuntary liquidation, dissolution, or winding up of the affairs of the Company. The holders of Series A Preferred Stock are entitled to vote with the holders of the Common Stock as a single class on an “as-converted” basis and, for so long as the Series A Investors or their successors have the right to designate a nominee for election to the board pursuant to their stockholders’ agreement with the Company, have the right to elect one board member voting as a separate class. They also have veto rights over certain amendments to the Company’s organizational documents that would have an adverse effect on the rights of the Series A Preferred Stock; issuance of senior or pari passu securities; or the incurrence of indebtedness above certain leverage ratios, as set forth in the Certificate of Designation. Holders of Series A Preferred Stock have the right under the Certificate of Designation to receive a liquidation preference entitling them to be paid out of assets available for distribution to stockholders before any payment may be made to holders of any other class or series of capital stock, the value of which preference is equal to the greater of (a) the Stated Value plus all accrued and unpaid dividends or (b) the amount that such holders would have been entitled to receive upon the Company’s liquidation, dissolution, and winding up if all outstanding shares of Series A Preferred Stock had been converted into shares of Common Stock immediately prior to such liquidation, dissolution, or winding up. Holders of Series A Preferred Stock are also entitled (a) to receive a cumulative annual dividend equal to 5.0% of the Stated Value, payable quarterly in arrears in cash, by increasing the Stated Value, or in a combination thereof at Catalent’s election, with such rate subject to an increase to 6.5% or 8.0% d epending on the price of the Common Stock at the fourth (or in certain cases fifth) anniversary of the initial issuance, as set forth in the Certificate of Designation, and (b) to participate in the distribution of any ordinary dividend on the Common Stock calculated on an as-converted basis. The Series A Preferred Stock is subject to conversion or redemption under various circumstances, including the right of holders to convert some or all of their shares into shares of Common Stock after twelve months at a fixed price of $49.54 (the “Conversion Price”) and the Company’s right to (x) convert all outstanding share s of Series A Preferred Stock at any time after the third anniversary of the initial issuance if the price of the Common Stock exceeds 150.0% of the Conversion Price or (y) redeem all outstanding shares of Series A Preferred Stock at any time after the fifth anniversary of the initial issuance at a price per share equal to the Stated Value, plus accrued and unpaid dividends, for cash, shares of Common Stock, or a combination of these. The Conversion Price is subject to customary anti-dilution and other adjustments. In addition, holders of shares of Series A Preferred Stock are eligible to demand redemption of their shares in the event of a change of control. Due to these various rights, privileges, and preferences, the Company has classified the Series A Preferred Stock as temporary (mezzanine) equity on its consolidated balance sheets. Proceeds from the offering of the Series A Preferred Stock, net of stock issuance costs, were $646.3 million , which were used to fund a portion of the consideration for the Paragon acquisition due at its closing. Of the net proceeds, $39.7 million was allocated to the dividend adjustment feature at its issuance and separately accounted for as a derivative liability, as disclosed in Note 10, Derivative Instruments and Hedging Activities; thus, the proceeds of the issuance were allocated as follows: (Dollars in millions) Issuance of Series A Preferred Stock $ 650.0 Stock issuance costs (3.7) Net of stock issuance costs 646.3 Derivative liability (Portion of preferred stock allocated to dividend adjustment at inception - see (39.7) Net proceeds from Series A Preferred Stock issuance $ 606.6 Any change in the fair value of derivative liability is recorded as non-operating expenses in the consolidated statement of operations. See Note 10, Derivative Instruments and Hedging Activities for detail concerning the change in fair value during the three months ended September 30, 2019. |
Leases
Leases | 3 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Leases of Lessee Disclosure [Text Block] | LEASES The Company leases certain manufacturing and office facilities, land, vehicles, and equipment. The terms of these leases vary widely, although most have terms between 3 and 10 years. In accordance with ASC 842 , Leases , the Company recognizes a “right-of-use” asset and related lease liability at the commencement date of each lease based on the present value of the fixed lease payments over the expected lease term. The lease term for this purpose will include any renewal period where the Company determines that it is reasonably certain that it will exercise the option to renew. While certain leases also permit Catalent to terminate the lease in advance of the nominal term upon payment of an associated penalty, the Company generally does not take into account potential early termination dates in its determination of the lease term as it is reasonably certain not to exercise an early-termination option as of the lease commencement date. The Company uses its incremental borrowing rate, which represents the interest rate the Company would expect to pay on a collateralized basis to borrow an amount equal to the lease payments under similar terms, in order to calculate the present value of a lease, since the implicit discount rate for its leases is not readily determinable. Fixed lease payments are recognized on straight-line basis over the lease term, while variable payments are recognized in the period incurred. As permitted by ASC 842, the Company has elected not to separate those components of a lease agreement not related to the leasing of an asset from those components that are related. The Company does not record leases with an initial lease term of 12 months or less on its consolidated balance sheets. The Company recognizes lease expense for these short-term leases on a straight-line basis over the lease term. Supplemental information concerning the leases recorded in the Company's unaudited consolidated balance sheet as of September 30, 2019 is detailed in the following table: (Dollars in millions) Line item in the consolidated balance sheet Balance at September 30, 2019 Right-of-use assets: Finance leases Property, plant, and equipment, net $ 122.9 Operating leases Other assets 65.7 Current lease liabilities: Finance leases Current portion of long-term obligations and other short-term borrowings 9.5 Operating leases Other accrued liabilities 10.6 Non-current lease liabilities: Finance leases Long-term obligations, less current portion 157.3 Operating leases Other liabilities 56.6 The components of the net lease costs for the three months ended September 30, 2019 reflected in the Company's unaudited consolidated statement of operations were as follows: (Dollars in millions) Three months ended September 30, 2019 Finance lease costs: Amortization of right-of-use assets $ 1.9 Interest on lease liabilities 3.1 Total 5.0 Operating lease costs 4.2 Variable lease costs 1.7 Total lease costs $ 10.9 The weighted average remaining lease term and weighted average discount rate related to the Company's right-of-use assets and lease liabilities as of September 30, 2019 are as follows: Weighted average remaining lease term (years): Finance leases 16.1 Operating leases 9.2 Weighted average discount rate: Finance leases 6.7 % Operating leases 4.4 % Supplemental information concerning the cash-flow impact arising from the Company's leases for the three months ended September 30, 2019 recorded in the Company's unaudited consolidated statement of cash flows is detailed in the following table (in millions): Cash paid for amounts included in lease liabilities: Financing cash flows from finance leases $ 2.2 Operating cash flows from finance leases 3.1 Operating cash flows from operating leases 2.4 Non-cash transactions: Right-of-use assets obtained in exchange for new finance lease liabilities 4.1 Right-of-use assets obtained in exchange for new operating lease liabilities 23.7 As of September 30, 2019, the Company expects that its future minimum lease payments will become due and payable as follows: (Dollars in millions) Finance Leases Operating Leases Total Remainder of 2020 $ 15.8 $ 10.0 $ 25.8 2021 20.0 12.4 32.4 2022 17.9 11.7 29.6 2023 17.4 11.3 28.7 2024 16.8 8.0 24.8 Thereafter 181.2 30.6 211.8 Total minimum lease payments 269.1 84.0 353.1 Less: interest 102.3 16.8 119.1 Total lease liabilities $ 166.8 $ 67.2 $ 234.0 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Sep. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES 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 consolidated 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, 2019 | |
Segment Reporting [Abstract] | |
Segment Information | SEGMENT INFORMATION As disclosed in Note 1, Basis of Presentation and Summary of Significant Accounting Policies, the Company now conducts its business within the following operating segments: Softgel and Oral Technologies, Biologics, Oral and Specialty 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 for each of the Company's current reporting segments during the three months ended September 30, 2019 and 2018: (Dollars in millions) Three Months Ended 2019 2018 Net revenue: Softgel and Oral Technologies $ 263.7 $ 240.1 Biologics 188.6 125.7 Oral and Specialty Delivery 132.6 110.8 Clinical Supply Services 84.6 77.7 Inter-segment revenue elimination (4.8) (2.5) Net revenue $ 664.7 $ 551.8 (Dollars in millions) Three Months Ended 2019 2018 Segment EBITDA reconciled to net earnings/(loss): Softgel and Oral Technologies $ 46.4 $ 41.3 Biologics 35.8 27.0 Oral and Specialty Delivery 27.7 18.9 Clinical Supply Services 21.6 20.2 Sub-Total $ 131.5 $ 107.4 Reconciling items to net earnings/(loss) Unallocated costs (1) (41.4) (39.8) Depreciation and amortization (60.6) (52.9) Interest expense, net (36.3) (28.1) Income tax expense/(benefit) $ 6.9 (1.0) Net earnings/(loss) $ 0.1 $ (14.4) (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) 2019 2018 Impairment charges and gain/(loss) on sale of assets $ 0.2 $ (2.9) Stock-based compensation (16.6) (10.0) Restructuring and other special items (a) (11.8) (13.2) Other income/(expense), net (b) (4.9) (5.7) Unallocated corporate costs, net (8.3) (8.0) Total unallocated costs $ (41.4) $ (39.8) (a) Restructuring and other special items during the three months ended September 30, 2019 include transaction and integration costs associated with the Company’s gene therapy acquisitions, the disposal of one of our sites in Australia (which closed in October 2019), and other restructuring initiatives across the Company's network of sites. Restructuring and other special items during the three months ended September 30, 2018 include transaction and integration costs associated with the acquisitions of Catalent Indiana and Juniper. (b) Refer to Note 8, Other (income)/expense, net, for details of financing charges and foreign currency translation adjustments recorded within other income/(expense), net. The following table includes total assets for each segment, as well as reconciling items necessary to total the amounts reported in the consolidated financial statements. (Dollars in millions) September 30, June 30, Assets Softgel and Oral Technologies $ 1,478.7 $ 1,586.5 Biologics 2,849.3 2,825.7 Oral and Specialty Delivery 1,190.9 1,098.7 Clinical Supply Services 464.9 463.2 Corporate and eliminations 135.7 209.9 Total assets $ 6,119.5 $ 6,184.0 |
Supplemental Balance Sheet Info
Supplemental Balance Sheet Information | 3 Months Ended |
Sep. 30, 2019 | |
Balance Sheet Related Disclosures [Abstract] | |
Supplemental Balance Sheet Information | SUPPLEMENTAL BALANCE SHEET INFORMATION Supplemental balance sheet information at September 30, and June 30, 2019 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 $ 169.5 $ 161.6 Work-in-process & finished goods 101.6 115.0 Total inventories, gross 271.1 276.6 Inventory cost adjustment (20.4) (19.4) Inventories $ 250.7 $ 257.2 Prepaid expenses and other Prepaid expenses and other consist of the following: (Dollars in millions) September 30, June 30, Prepaid expenses $ 41.1 $ 18.7 Contract assets 16.1 23.3 Current assets held for sale (1) 11.7 — Spare parts supplies 8.4 8.1 Prepaid income tax 9.9 10.0 Non-U.S. value-added tax 12.3 16.4 Other current assets 25.3 23.6 Prepaid expenses and other $ 124.8 $ 100.1 (1) In fiscal 2018, the Company agreed to sell its facility in Braeside, Australia, which is part of the Softgel and Oral Technologies segment. As of September 30, 2019, the facility's assets met the criteria to be classified as held for sale; as a result, these assets and liabilities have been reclassified within the other assets and liabilities line on the consolidated balance sheets. Non-current assets held for sale and current liabilities held for sale of $29.1 million and $12.2 million, respectively, are presented in Other assets and Other accrued liabilities, respectively on the consolidated balance sheet as of September 30, 2019. The sale transaction closed in the second quarter of fiscal 2020. 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 $ 1,046.3 $ 1,049.4 Machinery, equipment, and capitalized software 1,102.0 1,104.9 Furniture and fixtures 17.1 16.9 Construction in progress 315.1 278.9 Property, plant, and equipment, at cost 2,480.5 2,450.1 Accumulated depreciation (919.4) (913.4) Property, plant, and equipment, net $ 1,561.1 $ 1,536.7 Depreciation expense was $39.1 million for the three months ended September 30, 2019 and $34.7 million for the three months ended September 30, 2018. 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 $ 83.4 $ 103.9 Restructuring accrual 5.7 8.2 Accrued interest 17.4 11.7 Contract liability 159.6 155.2 Accrued income tax — 8.5 Current liabilities held for sale (1) 12.2 — Other accrued liabilities and expenses 49.2 50.9 Other accrued liabilities $ 327.5 $ 338.4 |
Subsequent Events (Notes)
Subsequent Events (Notes) | 3 Months Ended |
Sep. 30, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | SUBSEQUENT EVENTSTo be updated if needed. |
Other Income and Expenses
Other Income and Expenses | 3 Months Ended |
Sep. 30, 2019 | |
Other Income and Expenses [Abstract] | |
Other Income and Other Expense Disclosure [Text Block] | OTHER (INCOME)/EXPENSE, NET The components of other (income)/expense, net for the three months ended September 30, 2019 and 2018 are as follows: Three Months Ended (Dollars in millions) 2019 2018 Other (income)/expense, net Debt refinancing costs (1) $ 0.1 $ 4.2 Foreign currency (gains) and losses (2) (3.1) 1.7 Other (3) 7.9 (0.2) Total other (income)/expense, net $ 4.9 $ 5.7 (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) Included within Other for the three months ended September 30, 2019 are unrealized losses of $8.9 million related to the fair value of the derivative liability associated with the Series A Preferred Stock. |
Basis of Presentation and Sum_2
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Sep. 30, 2019 | |
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, 2019 are not necessarily indicative of the results that may be expected for the year ending June 30, 2020. The consolidated balance sheet at June 30, 2019 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, 2019 filed with the Securities and Exchange Commission (the “ SEC ” ). In fiscal 2020, 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 changed the components of three of its four operating segments: • Softgel and Oral Technologies, which includes formulation, development, and clinical and commercial manufacturing of soft capsules, or “softgels”, as well as large-scale manufacturing of oral solid dose forms, for pharmaceutical and consumer health markets, and supporting ancillary services; and • Biologics, which encompasses biologic cell-line and viral vector gene therapy development and manufacturing; formulation, development, and manufacturing for parenteral dose forms, including prefilled syringes, vials, and cartridges; and analytical development and testing services for large molecules; and • Oral and Specialty Delivery, which includes formulation, development, and small-to-medium scale manufacturing for most types of oral solid dose forms, including Zydis orally dissolving tablets; formulation, development, and manufacture of blow-fill-seal unit doses, metered dose inhalers, and nasal products; and analytical development and testing capabilities for small molecules. Each of these three segments, along with the Company's fourth segment, Clinical Supply Services, which remains unchanged, reports through a separate management team and ultimately reports to the Company's Chief Executive Officer, who is designated as the Chief Operating Decision Maker (“CODM”) for segment reporting purposes. The Company's operating segments are the same as its reporting segments. All prior-period comparative segment information has been restated to reflect the current reportable segments in accordance with Accounting Standards Codification ("ASC") 280, Segment Reporting |
Reclassification, Policy | Reclassification Certain prior-period amounts were reclassified to conform to the current period presentation. As discussed below in “—Recent Financial Accounting Standards—Recently Adopted Accounting Standards” and in Note 15, Leases , contract assets previously presented in trade receivables, net are now presented in prepaid expenses and other. |
Foreign Currency Translation | Foreign Currency Translation The financial statements of the Company’s operations are generally measured using the local currency as the functional currency. Adjustments to translate the assets and liabilities of operations outside the U.S. into U.S. dollars are accumulated as a component of other comprehensive income/(loss) utilizing period-end exchange rates. Since July 1, 2018, the Company has accounted 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 $0.5 million for the three months ended September 30, 2019 a nd 2018, 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 $13.8 million and $11.3 million for the three months ended September 30, 2019 and 2018 , respectively. |
Recent Financial Accounting Standards | Recent Financial Accounting Standards Recently Adopted Accounting Standards In February 2016, the FASB issued Accounting Standards Update ( “ ASU ”) 2016-02 , Leases (Topic 842) , which supersedes 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 became effective for public reporting entities in annual reporting periods beginning after December 15, 2018 and interim periods within those fiscal years. The guidance requires adoption of the new standard using the modified retrospective approach. The Company adopted the guidance on July 1, 2019 and elected the transition method that allows for the application of the standard at the adoption date rather than at the beginning of the earliest comparative period presented in the financial statements. The Company also elected the package of practical expedients; as a result, it did not reassess: (i) whether any expired or existing contract is or contains a lease, (ii) whether any expired or existing lease requires capitalization under the new guidance, and (iii) the initial direct cost for any existing lease. The Company also elected (x) not to reassess lease terms using hindsight and (y) to combine lease and non-lease components within a single lease agreement. Upon adoption, the Company recognized $46 million of lease liabilities and a corresponding amount for right-of-use assets on its consolidated balance sheet. The adoption of the guidance did not have any effect on the Company’s consolidated statements of operations or cash flows. Refer to Note 15, Leases for further discussion of the Company's lease accounting policy. New Accounting Standards Not Adopted as of September 30, 2019 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 retrospective or prospective application. The Company does not expect the adoption of this guidance to have a material impact on its consolidated financial statements. In August 2018, the FASB issued ASU 2018-13 , Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirement for Fair Value Measurement , which changes the disclosure requirements on fair value measurements in Topic 820. The guidance eliminates certain disclosure requirements that are no longer considered cost beneficial and adds new disclosure requirement for Level 3 fair value measurements. The ASU will be effective for fiscal years beginning after December 15, 2019 and interim periods within those fiscal years. The Company does not expect the adoption of this guidance to have a material impact 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 known as Credit Expected Credit Losses ( “ CECL ” |
Revenue Recognition Revenue Rec
Revenue Recognition Revenue Recognition (Tables) | 3 Months Ended |
Sep. 30, 2019 | |
Geographical [Member] | |
Disaggregation of Revenue [Line Items] | |
Disaggregation of Revenue | 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, 2019 Three Months Ended September 30, 2018 United States $ 362.3 $ 264.4 Europe 210.1 196.4 International Other 110.9 107.6 Elimination of revenue attributable to multiple locations (18.6) (16.6) Total $ 664.7 $ 551.8 |
Product and Service[Member] | |
Disaggregation of Revenue [Line Items] | |
Disaggregation of Revenue | The following tables allocate revenue, for the three months ended September 30, 2019 and September 30, 2018, by type of activity and reporting segment (in millions): Three months ended September 30, 2019 Softgel & Oral Technologies Biologics Oral & Specialty Delivery Clinical Supply Services Total Manufacturing & commercial product supply $ 242.0 $ 64.4 $ 76.0 $ — $ 382.4 Development services 21.7 124.2 56.6 — 202.5 Clinical supply services — — — 84.6 84.6 Total $ 263.7 $ 188.6 $ 132.6 $ 84.6 $ 669.5 Inter-segment revenue elimination (4.8) Combined net revenue $ 664.7 Three months ended September 30, 2018 Softgel & Oral Technologies Biologics Oral & Specialty Delivery Clinical Supply Services Total Manufacturing & commercial product supply $ 218.2 $ 52.0 $ 62.2 $ — $ 332.4 Development services 21.9 73.7 48.6 — 144.2 Clinical supply services — — — 77.7 77.7 Total $ 240.1 $ 125.7 $ 110.8 $ 77.7 $ 554.3 Inter-segment revenue elimination (2.5) Combined net revenue $ 551.8 |
Revenue Recognition Contractual
Revenue Recognition Contractual Liabilities (Tables) | 3 Months Ended |
Sep. 30, 2019 | |
Revenue Recognition and Deferred Revenue [Abstract] | |
Contractual Liabilities | Changes in the contract liabilities balance during the three months ended September 30, 2019 are as follows: (Dollars in millions) Contract liability Balance at June 30, 2019 $ 177.4 Balance at September 30, 2019 $ 182.5 Revenue recognized in the period from: Amounts included in contract liability at the beginning of the period $ 42.8 |
Goodwill (Tables)
Goodwill (Tables) | 3 Months Ended |
Sep. 30, 2019 | |
Goodwill Disclosure [Abstract] | |
Goodwill - Rollforward | The following table summarizes the changes between June 30, 2019 and September 30, 2019 in the carrying amount of goodwill in total and by reporting segment: (Dollars in millions) Softgel & Oral Technologies Biologics Oral & Specialty Delivery Clinical Supply Services Total Balance at June 30, 2019 $ 409.2 $ 1,320.0 $ 340.3 $ 151.4 $ 2,220.9 Additions — 2.4 — — 2.4 Reallocation 108.1 (124.3) 16.2 — — Other (1.6) (7.4) 1.1 — (7.9) Foreign currency translation adjustments (10.2) (1.6) (3.8) (3.9) (19.5) Balance at September 30, 2019 $ 505.5 $ 1,189.1 $ 353.8 $ 147.5 $ 2,195.9 The addition to goodwill in the Biologics reporting segment relates to the Novavax transaction. See Note 3, Business Combinations . The reallocation of goodwill relates to the adjustments to the Company’s reporting segments, as a result of which certain assets moved from the Biologics reporting segment to the Oral and Specialty Delivery reporting segment, and other assets moved from the Oral and Specialty Delivery reporting segment to the Softgel and Oral Technologies reporting segment. The Company recorded no impairment charge to goodwill in the current period. |
Definite Lived Long-Lived Ass_2
Definite Lived Long-Lived Assets (Tables) | 3 Months Ended |
Sep. 30, 2019 | |
Intangible Assets Disclosure [Abstract] | |
Other Intangible Assets Subject to Amortization | The details of other intangibles, net as of September 30, 2019 and June 30, 2019 are as follows: (Dollars in millions) Weighted Average Life Gross Carrying Value Accumulated Amortization Net Carrying Value September 30, 2019 Amortized intangibles: Core technology 18 years $ 133.9 $ (77.2) $ 56.7 Customer relationships 14 years 974.4 (195.2) 779.2 Product relationships 11 years 269.4 (210.0) 59.4 Other 4 years 9.4 (1.8) 7.6 Total intangible assets $ 1,387.1 $ (484.2) $ 902.9 (Dollars in millions) Weighted Average Life Gross Carrying Value Accumulated Amortization Net Carrying Value June 30, 2019 Amortized intangibles: Core technology 18 years $ 168.2 $ (105.6) $ 62.6 Customer relationships 14 years 981.1 (182.5) 798.6 Product relationships 11 years 275.5 (213.9) 61.6 Other 4 years 9.3 (1.3) 8.0 Total intangible assets $ 1,434.1 $ (503.3) $ 930.8 |
Future Amortization Expense | Future amortization expense for the next five fiscal years is estimated to be: (Dollars in millions) Remainder 2021 2022 2023 2024 2025 Amortization expense $ 62.9 $ 85.9 $ 85.2 $ 84.7 $ 84.5 $ 83.9 |
Long-Term Obligations and Oth_2
Long-Term Obligations and Other Short-Term Borrowings (Tables) | 3 Months Ended |
Sep. 30, 2019 | |
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 consisted of the following at September 30, 2019 and June 30, 2019: (Dollars in millions) Maturity as of September 30, 2019 September 30, 2019 June 30, 2019 Senior secured credit facilities Term loan facility U.S. dollar-denominated May 2026 $ 934.4 $ 936.2 Term loan facility euro-denominated May 2024 332.7 346.8 Revolving credit facility May 2024 — — Euro-denominated 4.75% Senior Notes due 2024 December 2024 411.9 428.3 U.S. dollar-denominated 4.875% Senior Notes due 2026 January 2026 444.8 444.6 U.S. dollar-denominated 5.00% Senior Notes due 2027 July 2027 492.4 492.1 Deferred purchase consideration October 2021 145.1 143.9 Capital lease obligations 2020 to 2044 166.8 167.3 Other obligations 2019 to 2024 4.9 0.1 Total 2,933.0 2,959.3 Less: Current portion of long-term obligations and other short-term 74.3 76.5 Long-term obligations, less current portion $ 2,858.7 $ 2,882.8 |
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, 2019 | |
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, 2019 and June 30, 2019 are as follows: September 30, 2019 June 30, 2019 (Dollars in millions) Fair Value Measurement Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value Euro-denominated 4.75% senior notes due Level 2 $ 411.9 $ 425.9 $ 428.3 $ 454.2 U.S. dollar-denominated 4.875% senior notes Level 2 444.8 460.9 444.6 457.0 U.S. dollar-denominated 5.00% senior notes Level 2 492.4 523.4 492.1 509.0 Senior secured credit facilities & other Level 2 1,583.9 1,550.1 1,594.3 1,526.0 Total $ 2,933.0 $ 2,960.3 $ 2,959.3 $ 2,946.2 |
Earnings Per Share Earnings Per
Earnings Per Share Earnings Per Share (Tables) | 3 Months Ended |
Sep. 30, 2019 | |
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, 2019 and 2018, respectively, are as follows (in millions, except share and per share data): Three Months Ended (Dollars in millions, except per share data) 2019 2018 Net earnings/(loss) $ 0.1 $ (14.4) Less: Series A Preferred Stock dividend (8.1) — Net earnings/(loss) attributable to common shareholders $ (8.0) $ (14.4) Weighted average shares outstanding 145,663,115 142,149,315 Total weighted average diluted shares outstanding 145,663,115 142,149,315 Earnings per share: Basic $ (0.05) $ (0.10) Diluted $ (0.05) $ (0.10) |
Other Income and Expense (Table
Other Income and Expense (Tables) | 3 Months Ended |
Sep. 30, 2019 | |
Other Income and Expenses [Abstract] | |
Schedule of Other Nonoperating Income (Expense) | The components of other (income)/expense, net for the three months ended September 30, 2019 and 2018 are as follows: Three Months Ended (Dollars in millions) 2019 2018 Other (income)/expense, net Debt refinancing costs (1) $ 0.1 $ 4.2 Foreign currency (gains) and losses (2) (3.1) 1.7 Other (3) 7.9 (0.2) Total other (income)/expense, net $ 4.9 $ 5.7 (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) Included within Other for the three months ended September 30, 2019 are unrealized losses of $8.9 million related to the fair value of the derivative liability associated with the Series A Preferred Stock. |
Derivative Instruments and He_2
Derivative Instruments and Hedging Activities Net Investment Hedge Activity (Tables) | 3 Months Ended |
Sep. 30, 2019 | |
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, 2019 and 2018. Three Months Ended (Dollars in millions) 2019 2018 Unrealized foreign exchange gain/(loss) within other comprehensive income $ 20.3 $ (4.2) Unrealized foreign exchange gain/(loss) within statement of operations $ 9.7 $ (2.5) |
Schedule of Derivative Liabilities at Fair Value [Table Text Block] | The following table sets forth a summary of changes in the estimated fair value of the derivative liability: ( Dollars in millions) Fair Value Measurements of Balance at July 1, 2019 $ 26.8 Change in estimated fair value of Series A Preferred Stock derivative liability 8.9 Balance at September 30, 2019 $ 35.7 |
Employee Retirement Benefit P_2
Employee Retirement Benefit Plans (Tables) | 3 Months Ended |
Sep. 30, 2019 | |
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) 2019 2018 Components of net periodic benefit cost: Selling, general, and administrative expenses: Service cost $ 0.6 $ 0.9 Other (income)/expense, net: Interest cost 1.7 1.9 Expected return on plan assets (2.7) (2.6) Amortization (1) 0.8 0.6 Net amount recognized $ 0.4 $ 0.8 (1) Amount represents the amortization of unrecognized actuarial gains/(losses). |
Equity and Accumulated Other _2
Equity and Accumulated Other Comprehensive Income (Loss) (Tables) | 3 Months Ended |
Sep. 30, 2019 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of Comprehensive Income (Loss) | 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, 2019 and 2018 are presented below. Three Months Ended (Dollars in millions) 2019 2018 Foreign currency translation adjustments: Net investment hedge $ 20.3 $ (4.2) Long-term intercompany loans (6.5) (3.3) Translation adjustments (32.3) (2.8) Total foreign currency translation adjustment, pretax (18.5) (10.3) Tax expense/(benefit) 3.3 (1.5) Total foreign currency translation adjustment, net of tax $ (21.8) $ (8.8) 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) (0.3) 0.2 Net change in minimum pension liability, net of tax $ (0.3) $ 0.4 |
Schedule of Accumulated Other Comprehensive Income (Loss) | For the three months ended September 30, 2019, 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 Other Total Balance at June 30, 2019 $ (303.7) $ (49.1) $ (1.1) $ (353.9) Other comprehensive income/(loss) before (21.8) — — (21.8) Amounts reclassified from accumulated other — (0.3) — (0.3) Net current period other comprehensive income/(loss) (21.8) (0.3) — (22.1) Balance at September 30, 2019 $ (325.5) $ (49.4) $ (1.1) $ (376.0) |
Equity (Tables)
Equity (Tables) | 3 Months Ended |
Sep. 30, 2019 | |
Equity [Abstract] | |
Schedule of Redeemable Preferred Stock | the proceeds of the issuance were allocated as follows: (Dollars in millions) Issuance of Series A Preferred Stock $ 650.0 Stock issuance costs (3.7) Net of stock issuance costs 646.3 Derivative liability (Portion of preferred stock allocated to dividend adjustment at inception - see (39.7) Net proceeds from Series A Preferred Stock issuance $ 606.6 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Schedule Of Operating And Financing Leases Presented In Balance Sheet [Table Text Block] | Supplemental information concerning the leases recorded in the Company's unaudited consolidated balance sheet as of September 30, 2019 is detailed in the following table: (Dollars in millions) Line item in the consolidated balance sheet Balance at September 30, 2019 Right-of-use assets: Finance leases Property, plant, and equipment, net $ 122.9 Operating leases Other assets 65.7 Current lease liabilities: Finance leases Current portion of long-term obligations and other short-term borrowings 9.5 Operating leases Other accrued liabilities 10.6 Non-current lease liabilities: Finance leases Long-term obligations, less current portion 157.3 Operating leases Other liabilities 56.6 |
Lease, Cost [Table Text Block] | The components of the net lease costs for the three months ended September 30, 2019 reflected in the Company's unaudited consolidated statement of operations were as follows: (Dollars in millions) Three months ended September 30, 2019 Finance lease costs: Amortization of right-of-use assets $ 1.9 Interest on lease liabilities 3.1 Total 5.0 Operating lease costs 4.2 Variable lease costs 1.7 Total lease costs $ 10.9 The weighted average remaining lease term and weighted average discount rate related to the Company's right-of-use assets and lease liabilities as of September 30, 2019 are as follows: Weighted average remaining lease term (years): Finance leases 16.1 Operating leases 9.2 Weighted average discount rate: Finance leases 6.7 % Operating leases 4.4 % |
Schedule Of Supplemental Cash Flow Information Related To Leases [Table Text Block] | Supplemental information concerning the cash-flow impact arising from the Company's leases for the three months ended September 30, 2019 recorded in the Company's unaudited consolidated statement of cash flows is detailed in the following table (in millions): Cash paid for amounts included in lease liabilities: Financing cash flows from finance leases $ 2.2 Operating cash flows from finance leases 3.1 Operating cash flows from operating leases 2.4 Non-cash transactions: Right-of-use assets obtained in exchange for new finance lease liabilities 4.1 Right-of-use assets obtained in exchange for new operating lease liabilities 23.7 |
Schedule Of Maturities Of Operating And Finance Lease Liabilities [Table Text Block] | As of September 30, 2019, the Company expects that its future minimum lease payments will become due and payable as follows: (Dollars in millions) Finance Leases Operating Leases Total Remainder of 2020 $ 15.8 $ 10.0 $ 25.8 2021 20.0 12.4 32.4 2022 17.9 11.7 29.6 2023 17.4 11.3 28.7 2024 16.8 8.0 24.8 Thereafter 181.2 30.6 211.8 Total minimum lease payments 269.1 84.0 353.1 Less: interest 102.3 16.8 119.1 Total lease liabilities $ 166.8 $ 67.2 $ 234.0 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
Net Revenue by Segment | (Dollars in millions) Three Months Ended 2019 2018 Net revenue: Softgel and Oral Technologies $ 263.7 $ 240.1 Biologics 188.6 125.7 Oral and Specialty Delivery 132.6 110.8 Clinical Supply Services 84.6 77.7 Inter-segment revenue elimination (4.8) (2.5) Net revenue $ 664.7 $ 551.8 |
Reconciliation of Earnings/(Loss) from Continuing Operations to EBITDA | (Dollars in millions) Three Months Ended 2019 2018 Segment EBITDA reconciled to net earnings/(loss): Softgel and Oral Technologies $ 46.4 $ 41.3 Biologics 35.8 27.0 Oral and Specialty Delivery 27.7 18.9 Clinical Supply Services 21.6 20.2 Sub-Total $ 131.5 $ 107.4 Reconciling items to net earnings/(loss) Unallocated costs (1) (41.4) (39.8) Depreciation and amortization (60.6) (52.9) Interest expense, net (36.3) (28.1) Income tax expense/(benefit) $ 6.9 (1.0) Net earnings/(loss) $ 0.1 $ (14.4) (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) 2019 2018 Impairment charges and gain/(loss) on sale of assets $ 0.2 $ (2.9) Stock-based compensation (16.6) (10.0) Restructuring and other special items (a) (11.8) (13.2) Other income/(expense), net (b) (4.9) (5.7) Unallocated corporate costs, net (8.3) (8.0) Total unallocated costs $ (41.4) $ (39.8) (a) Restructuring and other special items during the three months ended September 30, 2019 include transaction and integration costs associated with the Company’s gene therapy acquisitions, the disposal of one of our sites in Australia (which closed in October 2019), and other restructuring initiatives across the Company's network of sites. Restructuring and other special items during the three months ended September 30, 2018 include transaction and integration costs associated with the acquisitions of Catalent Indiana and Juniper. (b) Refer to Note 8, Other (income)/expense, net, for details of financing charges and foreign currency translation adjustments recorded within other income/(expense), net. |
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 and Oral Technologies $ 1,478.7 $ 1,586.5 Biologics 2,849.3 2,825.7 Oral and Specialty Delivery 1,190.9 1,098.7 Clinical Supply Services 464.9 463.2 Corporate and eliminations 135.7 209.9 Total assets $ 6,119.5 $ 6,184.0 |
Supplemental Balance Sheet In_2
Supplemental Balance Sheet Information (Tables) | 3 Months Ended |
Sep. 30, 2019 | |
Balance Sheet Related Disclosures [Abstract] | |
Inventory | 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 $ 169.5 $ 161.6 Work-in-process & finished goods 101.6 115.0 Total inventories, gross 271.1 276.6 Inventory cost adjustment (20.4) (19.4) Inventories $ 250.7 $ 257.2 |
Prepaid and Other Assets | Prepaid expenses and other Prepaid expenses and other consist of the following: (Dollars in millions) September 30, June 30, Prepaid expenses $ 41.1 $ 18.7 Contract assets 16.1 23.3 Current assets held for sale (1) 11.7 — Spare parts supplies 8.4 8.1 Prepaid income tax 9.9 10.0 Non-U.S. value-added tax 12.3 16.4 Other current assets 25.3 23.6 Prepaid expenses and other $ 124.8 $ 100.1 |
Property and Equipment | 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 $ 1,046.3 $ 1,049.4 Machinery, equipment, and capitalized software 1,102.0 1,104.9 Furniture and fixtures 17.1 16.9 Construction in progress 315.1 278.9 Property, plant, and equipment, at cost 2,480.5 2,450.1 Accumulated depreciation (919.4) (913.4) Property, plant, and equipment, net $ 1,561.1 $ 1,536.7 |
Other Accrued Liabilities | Other accrued liabilities Other accrued liabilities consist of the following: (Dollars in millions) September 30, June 30, Accrued employee-related expenses $ 83.4 $ 103.9 Restructuring accrual 5.7 8.2 Accrued interest 17.4 11.7 Contract liability 159.6 155.2 Accrued income tax — 8.5 Current liabilities held for sale (1) 12.2 — Other accrued liabilities and expenses 49.2 50.9 Other accrued liabilities $ 327.5 $ 338.4 |
Other Income and Expenses (Tabl
Other Income and Expenses (Tables) | 3 Months Ended |
Sep. 30, 2019 | |
Other Income and Expenses [Abstract] | |
Schedule of Other Nonoperating Income (Expense) | The components of other (income)/expense, net for the three months ended September 30, 2019 and 2018 are as follows: Three Months Ended (Dollars in millions) 2019 2018 Other (income)/expense, net Debt refinancing costs (1) $ 0.1 $ 4.2 Foreign currency (gains) and losses (2) (3.1) 1.7 Other (3) 7.9 (0.2) Total other (income)/expense, net $ 4.9 $ 5.7 (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) Included within Other for the three months ended September 30, 2019 are unrealized losses of $8.9 million related to the fair value of the derivative liability associated with the Series A Preferred Stock. |
Basis of Presentation and Sum_3
Basis of Presentation and Summary of Significant Accounting Policies Research and Development Expense (Details) - USD ($) $ in Millions | 3 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Selling, General and Administrative Expenses | ||
Research and Development Expense [Line Items] | ||
Research and Development Expense | $ 0.5 | $ 0.5 |
Cost of Sales | ||
Research and Development Expense [Line Items] | ||
Research and Development Expense | $ 13.8 | $ 11.3 |
Basis of Presentation and Sum_4
Basis of Presentation and Summary of Significant Accounting Policies Recent Financial Accounting Standards (Details) $ in Millions | 3 Months Ended |
Sep. 30, 2019USD ($) | |
Accounting Standards Update 2016-02 [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | $ 46 |
Revenue Recognition Disaggregat
Revenue Recognition Disaggregation of Revenue by type of activity and reporting segment (Details) - USD ($) $ in Millions | 3 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Disaggregation of Revenue [Line Items] | ||
Inter-segment revenue elimination | $ (4.8) | $ (2.5) |
Net revenue | 664.7 | 551.8 |
Softgel and Oral Technologies | ||
Disaggregation of Revenue [Line Items] | ||
Net revenue | 263.7 | 240.1 |
Softgel and Oral Technologies | Manufacturing & Commercial Product Supply | ||
Disaggregation of Revenue [Line Items] | ||
Net revenue | 242 | 218.2 |
Softgel and Oral Technologies | Development Services | ||
Disaggregation of Revenue [Line Items] | ||
Net revenue | 21.7 | 21.9 |
Softgel and Oral Technologies | Clinical Supply Services | ||
Disaggregation of Revenue [Line Items] | ||
Net revenue | 0 | 0 |
Biologics | ||
Disaggregation of Revenue [Line Items] | ||
Net revenue | 188.6 | 125.7 |
Biologics | Manufacturing & Commercial Product Supply | ||
Disaggregation of Revenue [Line Items] | ||
Net revenue | 64.4 | 52 |
Biologics | Development Services | ||
Disaggregation of Revenue [Line Items] | ||
Net revenue | 124.2 | 73.7 |
Biologics | Clinical Supply Services | ||
Disaggregation of Revenue [Line Items] | ||
Net revenue | 0 | 0 |
Oral and Specialty Drug Delivery | ||
Disaggregation of Revenue [Line Items] | ||
Net revenue | 132.6 | 110.8 |
Oral and Specialty Drug Delivery | Manufacturing & Commercial Product Supply | ||
Disaggregation of Revenue [Line Items] | ||
Net revenue | 76 | 62.2 |
Oral and Specialty Drug Delivery | Development Services | ||
Disaggregation of Revenue [Line Items] | ||
Net revenue | 56.6 | 48.6 |
Oral and Specialty Drug Delivery | Clinical Supply Services | ||
Disaggregation of Revenue [Line Items] | ||
Net revenue | 0 | 0 |
Clinical Supply Services | ||
Disaggregation of Revenue [Line Items] | ||
Net revenue | 84.6 | 77.7 |
Clinical Supply Services | Manufacturing & Commercial Product Supply | ||
Disaggregation of Revenue [Line Items] | ||
Net revenue | 0 | 0 |
Clinical Supply Services | Development Services | ||
Disaggregation of Revenue [Line Items] | ||
Net revenue | 0 | 0 |
Clinical Supply Services | Clinical Supply Services | ||
Disaggregation of Revenue [Line Items] | ||
Net revenue | 84.6 | 77.7 |
Total Catalent before inter-segment revenue elimination | ||
Disaggregation of Revenue [Line Items] | ||
Net revenue | 669.5 | 554.3 |
Total Catalent before inter-segment revenue elimination | Manufacturing & Commercial Product Supply | ||
Disaggregation of Revenue [Line Items] | ||
Net revenue | 382.4 | 332.4 |
Total Catalent before inter-segment revenue elimination | Development Services | ||
Disaggregation of Revenue [Line Items] | ||
Net revenue | 202.5 | 144.2 |
Total Catalent before inter-segment revenue elimination | Clinical Supply Services | ||
Disaggregation of Revenue [Line Items] | ||
Net revenue | $ 84.6 | $ 77.7 |
Revenue Recognition Disaggreg_2
Revenue Recognition Disaggregation of Revenue by Geography (Details) - USD ($) $ in Millions | 3 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Disaggregation of Revenue [Line Items] | ||
Elimination of revenue attributable to multiple locations | $ (18.6) | $ (16.6) |
Net revenue | 664.7 | 551.8 |
United States | ||
Disaggregation of Revenue [Line Items] | ||
Net revenue | 362.3 | 264.4 |
Europe | ||
Disaggregation of Revenue [Line Items] | ||
Net revenue | 210.1 | 196.4 |
International Other | ||
Disaggregation of Revenue [Line Items] | ||
Net revenue | $ 110.9 | $ 107.6 |
Revenue Recognition Contractu_2
Revenue Recognition Contractual Liabilities (Details) - USD ($) $ in Millions | 3 Months Ended | |
Sep. 30, 2019 | Jun. 30, 2019 | |
Revenue Recognition and Deferred Revenue [Abstract] | ||
Contract with Customer, Liability | $ 182.5 | $ 177.4 |
Contract with Customer, Liability, Revenue Recognized | $ 42.8 |
Business Combinations Acquisiti
Business Combinations Acquisition Purchase Agreement (Details) € in Millions, $ in Millions | Jul. 31, 2019USD ($) | Jun. 15, 2019EUR (€) | May 17, 2019USD ($) |
Novavax [Member] | |||
Business Acquisition [Line Items] | |||
Business Combination, Consideration Transferred | $ 18.3 | ||
Paragon [Member] | |||
Business Acquisition [Line Items] | |||
Business Combination, Consideration Transferred | $ 1,192.1 | ||
Anagni [Member] | |||
Business Acquisition [Line Items] | |||
Business Combination, Consideration Pending Transfer | € | € 45 |
Business Combinations Net Asset
Business Combinations Net Assets Acquired (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Jul. 31, 2019 |
Novavax [Member] | ||
Net Assets Acquired from Business Combinations | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment | $ 15.6 | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Inventory | 0.3 | |
Business Acquisition, Goodwill, Expected Tax Deductible Amount | $ 2.4 | |
Paragon [Member] | ||
Net Assets Acquired from Business Combinations | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Cash and Equivalents | $ 7.6 |
Goodwill - Rollforward (Detail)
Goodwill - Rollforward (Detail) $ in Millions | 3 Months Ended |
Sep. 30, 2019USD ($) | |
Goodwill [Roll Forward] | |
Beginning balance | $ 2,220.9 |
Goodwill, Acquired During Period | 2.4 |
Goodwill, Transfers | 0 |
Goodwill, Other Increase (Decrease) | (7.9) |
Foreign currency translation adjustments | (19.5) |
Ending balance | 2,195.9 |
Softgel and Oral Technologies | |
Goodwill [Roll Forward] | |
Beginning balance | 409.2 |
Goodwill, Acquired During Period | 0 |
Goodwill, Transfers | 108.1 |
Foreign currency translation adjustments | (10.2) |
Ending balance | 505.5 |
Biologics | |
Goodwill [Roll Forward] | |
Beginning balance | 1,320 |
Goodwill, Acquired During Period | 2.4 |
Goodwill, Transfers | (124.3) |
Goodwill, Other Increase (Decrease) | (7.4) |
Foreign currency translation adjustments | (1.6) |
Ending balance | 1,189.1 |
Oral and Specialty Drug Delivery | |
Goodwill [Roll Forward] | |
Beginning balance | 340.3 |
Goodwill, Acquired During Period | 0 |
Goodwill, Transfers | 16.2 |
Goodwill, Other Increase (Decrease) | 1.1 |
Foreign currency translation adjustments | (3.8) |
Ending balance | 353.8 |
Clinical Supply Services | |
Goodwill [Roll Forward] | |
Beginning balance | 151.4 |
Goodwill, Acquired During Period | 0 |
Goodwill, Transfers | 0 |
Goodwill, Other Increase (Decrease) | 0 |
Foreign currency translation adjustments | (3.9) |
Ending balance | $ 147.5 |
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, 2019 | Jun. 30, 2019 | |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | $ 1,387.1 | $ 1,434.1 |
Accumulated Amortization | (484.2) | (503.3) |
Net Carrying Value | $ 902.9 | $ 930.8 |
Core technology [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Life | 18 years | 18 years |
Gross Carrying Value | $ 133.9 | $ 168.2 |
Accumulated Amortization | (77.2) | (105.6) |
Net Carrying Value | $ 56.7 | $ 62.6 |
Customer Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Life | 14 years | 14 years |
Gross Carrying Value | $ 974.4 | $ 981.1 |
Accumulated Amortization | (195.2) | (182.5) |
Net Carrying Value | $ 779.2 | $ 798.6 |
Product Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Life | 11 years | 11 years |
Gross Carrying Value | $ 269.4 | $ 275.5 |
Accumulated Amortization | (210) | (213.9) |
Net Carrying Value | $ 59.4 | $ 61.6 |
Other Intangible Assets [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Life | 4 years | 4 years |
Gross Carrying Value | $ 9.4 | $ 9.3 |
Accumulated Amortization | (1.8) | (1.3) |
Net Carrying Value | $ 7.6 | $ 8 |
Definite Lived Long-Lived Ass_4
Definite Lived Long-Lived Assets - Amortization Expense (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Intangible Assets Disclosure [Abstract] | ||
Amortization expense | $ 21.5 | $ 18.2 |
Remainder Fiscal 2020 | 62.9 | |
2021 | 85.9 | |
2022 | 85.2 | |
2023 | 84.7 | |
2024 | 84.5 | |
2025 | $ 83.9 |
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 | Oct. 23, 2017USD ($) | Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Jun. 27, 2019USD ($) | May 20, 2019USD ($) | Oct. 18, 2017USD ($) | Dec. 09, 2016EUR (€) |
Schedule Of Debt [Line Items] | |||||||
Total long-term debt | $ 2,933 | $ 2,959.3 | |||||
Debt, Current | 74.3 | 76.5 | |||||
Long-term obligations, less current portion | 2,858.7 | 2,882.8 | |||||
Payments to Acquire Businesses, Gross | $ 950 | ||||||
Payable Installments for Business Acquisition | 50 | ||||||
Term Loan Facility Incremental Dollar Term B-2 [Member] | |||||||
Schedule Of Debt [Line Items] | |||||||
Total long-term debt | $ 934.4 | 936.2 | $ 950 | ||||
Prepayment premium % | 1.00% | ||||||
Term loan facility euro-denominated | |||||||
Schedule Of Debt [Line Items] | |||||||
Total long-term debt | $ 332.7 | 346.8 | |||||
Revolving Credit Facility - Two | |||||||
Schedule Of Debt [Line Items] | |||||||
Total long-term debt | 0 | 0 | $ 200 | ||||
Four Point Seven Five Percent Senior Euro Denominated Notes [Member] | |||||||
Schedule Of Debt [Line Items] | |||||||
Total long-term debt | € | € 380 | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 4.75% | ||||||
U.S. dollar-denominated 4.875% Senior Notes due 2026 | |||||||
Schedule Of Debt [Line Items] | |||||||
Total long-term debt | $ 450 | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 4.875% | ||||||
U.S Dollar-denominated 5.00% Senior Notes [Member] | |||||||
Schedule Of Debt [Line Items] | |||||||
Total long-term debt | $ 500 | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.00% | ||||||
Deferred purchase consideration | |||||||
Schedule Of Debt [Line Items] | |||||||
Total long-term debt | 145.1 | 143.9 | |||||
Capital lease obligations | |||||||
Schedule Of Debt [Line Items] | |||||||
Total long-term debt | 166.8 | 167.3 | |||||
Other obligations | |||||||
Schedule Of Debt [Line Items] | |||||||
Total long-term debt | 4.9 | 0.1 | |||||
Accrued Liabilities [Member] | |||||||
Schedule Of Debt [Line Items] | |||||||
Payments to Acquire Businesses, Gross | $ 200 | ||||||
Carrying Value [Member] | |||||||
Schedule Of Debt [Line Items] | |||||||
Debt Instrument, Fair Value Disclosure | 2,933 | 2,959.3 | |||||
Fair Value, Inputs, Level 2 [Member] | Carrying Value [Member] | Four Point Seven Five Percent Senior Euro Denominated Notes [Member] | |||||||
Schedule Of Debt [Line Items] | |||||||
Debt Instrument, Fair Value Disclosure | 411.9 | 428.3 | |||||
Fair Value, Inputs, Level 2 [Member] | Carrying Value [Member] | U.S. dollar-denominated 4.875% Senior Notes due 2026 | |||||||
Schedule Of Debt [Line Items] | |||||||
Debt Instrument, Fair Value Disclosure | 444.8 | 444.6 | |||||
Fair Value, Inputs, Level 2 [Member] | Carrying Value [Member] | U.S Dollar-denominated 5.00% Senior Notes [Member] | |||||||
Schedule Of Debt [Line Items] | |||||||
Debt Instrument, Fair Value Disclosure | $ 492.4 | $ 492.1 |
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, 2019 | Jun. 27, 2019 | Oct. 18, 2017 | Dec. 09, 2016 | |
Four Point Seven Five Percent Senior Euro Denominated Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 4.75% | |||
U.S Dollar-denominated 5.00% Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 5.00% | |||
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% | |||
London Interbank Offered Rate (LIBOR) [Member] | Revolving Credit Facility - Two | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Basis Spread on Variable Rate | 2.25% | |||
Minimum [Member] | London Interbank Offered Rate (LIBOR) [Member] | Term loan facility U.S. dollar-denominated | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Basis Spread on Variable Rate | 1.00% | |||
Minimum [Member] | London Interbank Offered Rate (LIBOR) [Member] | Term loan facility euro-denominated | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Basis Spread on Variable Rate | 1.00% | |||
Minimum [Member] | London Interbank Offered Rate (LIBOR) [Member] | Revolving Credit Facility - Two | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Basis Spread on Variable Rate | 2.00% |
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 | Oct. 23, 2017USD ($) | Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) | May 20, 2019USD ($) | Oct. 18, 2017USD ($) | Dec. 09, 2016EUR (€) |
Debt Instrument [Line Items] | ||||||
Total long-term debt | $ 2,933 | $ 2,959.3 | ||||
Payments to Acquire Businesses, Gross | $ 950 | |||||
Installment Payment for Acquisition, Year 1 | 50 | |||||
Installment Payment for Acquisition, Year Two | 50 | |||||
Installment Payment for Acquisition, Year Three | 50 | |||||
Installment Payment for Acquisition, Year Four | 50 | |||||
Four Point Seven Five Percent Senior Euro Denominated Notes [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Total long-term debt | € | € 380 | |||||
U.S. dollar-denominated 4.875% Senior Notes due 2026 | ||||||
Debt Instrument [Line Items] | ||||||
Total long-term debt | $ 450 | |||||
Revolving Credit Facility - Two | ||||||
Debt Instrument [Line Items] | ||||||
Total long-term debt | $ 0 | $ 0 | $ 200 | |||
Revolving Credit Commitments [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Total long-term debt | $ 550 | |||||
Accrued Liabilities [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, 2019 | Jun. 30, 2019 |
Estimate of Fair Value Measurement [Member] | ||
Fair Value Measurements Of Financial Instruments [Line Items] | ||
Debt Instrument, Fair Value Disclosure | $ 2,960.3 | $ 2,946.2 |
Carrying Value [Member] | ||
Fair Value Measurements Of Financial Instruments [Line Items] | ||
Debt Instrument, Fair Value Disclosure | 2,933 | 2,959.3 |
Four Point Seven Five Percent Senior Euro Denominated Notes [Member] | Fair Value, Inputs, Level 2 [Member] | Estimate of Fair Value Measurement [Member] | ||
Fair Value Measurements Of Financial Instruments [Line Items] | ||
Debt Instrument, Fair Value Disclosure | 425.9 | 454.2 |
Four Point Seven Five Percent Senior Euro Denominated Notes [Member] | Fair Value, Inputs, Level 2 [Member] | Carrying Value [Member] | ||
Fair Value Measurements Of Financial Instruments [Line Items] | ||
Debt Instrument, Fair Value Disclosure | 411.9 | 428.3 |
U.S Dollar-denominated 5.00% Senior Notes [Member] | Fair Value, Inputs, Level 2 [Member] | Estimate of Fair Value Measurement [Member] | ||
Fair Value Measurements Of Financial Instruments [Line Items] | ||
Debt Instrument, Fair Value Disclosure | 523.4 | 509 |
U.S Dollar-denominated 5.00% Senior Notes [Member] | Fair Value, Inputs, Level 2 [Member] | Carrying Value [Member] | ||
Fair Value Measurements Of Financial Instruments [Line Items] | ||
Debt Instrument, Fair Value Disclosure | 492.4 | 492.1 |
U.S. dollar-denominated 4.875% Senior Notes due 2026 | Fair Value, Inputs, Level 2 [Member] | Estimate of Fair Value Measurement [Member] | ||
Fair Value Measurements Of Financial Instruments [Line Items] | ||
Debt Instrument, Fair Value Disclosure | 460.9 | 457 |
U.S. dollar-denominated 4.875% Senior Notes due 2026 | Fair Value, Inputs, Level 2 [Member] | Carrying Value [Member] | ||
Fair Value Measurements Of Financial Instruments [Line Items] | ||
Debt Instrument, Fair Value Disclosure | 444.8 | 444.6 |
Senior Secured Credit Facilities & Other [Member] | Fair Value, Inputs, Level 2 [Member] | Estimate of Fair Value Measurement [Member] | ||
Fair Value Measurements Of Financial Instruments [Line Items] | ||
Debt Instrument, Fair Value Disclosure | 1,550.1 | 1,526 |
Senior Secured Credit Facilities & Other [Member] | Fair Value, Inputs, Level 2 [Member] | Carrying Value [Member] | ||
Fair Value Measurements Of Financial Instruments [Line Items] | ||
Debt Instrument, Fair Value Disclosure | $ 1,583.9 | $ 1,594.3 |
Earnings Per Share Earnings P_2
Earnings Per Share Earnings Per Share - Additional Details (Details) - $ / shares | Sep. 30, 2019 | Jun. 30, 2019 |
Earnings Per Share [Abstract] | ||
Common Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Earnings Per Share [Abstract] | ||
Net earnings/(loss) | $ 0.1 | $ (14.4) |
Participating Securities, Distributed and Undistributed Earnings (Loss), Basic | (8.1) | 0 |
Net Income (Loss) Available to Common Stockholders, Basic | $ (8) | $ (14.4) |
Weighted average shares outstanding | 145,663,115 | 142,149,315 |
Total weighted average diluted shares outstanding | 145,663,115 | 142,149,315 |
Earnings Per Share, Basic | $ (0.05) | $ (0.10) |
Earnings Per Share, Diluted | $ (0.05) | $ (0.10) |
Other Income and Expense (Detai
Other Income and Expense (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | ||
Other Income and Expenses [Abstract] | |||
Debt refinancing costs | [1] | $0.1 | $4.2 |
Foreign Currency (gains) and losses | [2] | $ (3.1) | $ 1.7 |
Other | [3] | 7.9 | (0.2) |
Other (income)/expense, net | $ 4.9 | $ 5.7 | |
[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] | Included within Other for the three months ended September 30, 2019 are unrealized losses of $8.9 million related to the fair value of the derivative liability associated with the Series A Preferred Stock |
Restructuring and Other Restr_2
Restructuring and Other Restructuring and Other Costs (Details) - USD ($) $ in Millions | 3 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Restructuring and Related Activities [Abstract] | ||
Restructuring and other | $ 0.7 | $ 9.7 |
Derivative Instruments and He_3
Derivative Instruments and Hedging Activities - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Jun. 30, 2019 | |
Derivative [Line Items] | |||
Total long-term debt | $ 2,933 | $ 2,959.3 | |
Unrealized foreign exchange gain/(loss) within other comprehensive income | 20.3 | $ (4.2) | |
Unrealized foreign exchange gain/(loss) within statement of operations | 9.7 | (2.5) | |
Net accumulated gain related to investment hedges | 80.1 | ||
Proceeds from Issuance of Redeemable Preferred Stock | 646.3 | ||
Payments of Stock Issuance Costs | 3.7 | ||
Derivative Liability | $ 26.8 | ||
Derivative, Gain (Loss) on Derivative, Net | (8.9) | $ 0 | |
Embedded Derivative, Fair Value of Embedded Derivative Liability | 35.7 | ||
Euro Denominated Debt Outstanding [Member] | |||
Derivative [Line Items] | |||
Total long-term debt | $ 744.6 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Jun. 30, 2019 | |
Income Tax Contingency [Line Items] | |||
Unrecognized Tax Benefits, Including Income Tax Penalties and Interest Accrued | $ 5.3 | $ 5.2 | |
Unrecognized tax benefits that impact the effective income tax rate | 3.8 | ||
Accrued interest related to uncertain tax positions | 1.5 | 1.4 | |
Interest and penalties subject to indemnification | 1.4 | 1.3 | |
Income tax expense(benefit) | (6.9) | $ 1 | |
Earnings from continuing operations, before income taxes | (6.8) | $ (13.4) | |
Former Owner [Member] | |||
Income Tax Contingency [Line Items] | |||
Unrecognized Tax Benefits Subject to Indemnification | $ 0.6 | $ 0.6 |
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, 2019 | Sep. 30, 2018 | Jun. 30, 2019 | ||
Components of net periodic benefit cost: | ||||
Service cost | $ 0.6 | $ 0.9 | ||
Interest cost | 1.7 | 1.9 | ||
Expected return on plan assets | (2.7) | (2.6) | ||
Amortization | [1] | 0.8 | 0.6 | |
Net amount recognized | 0.4 | 0.8 | ||
Estimated discounted value of future employer contributions | 38.8 | $ 38.8 | ||
Estimated annual cash contribution | $ 1.7 | $ 1.7 | ||
[1] | Amount represents the amortization of unrecognized actuarial gains/(losses) |
Equity and Accumulated Other _3
Equity and Accumulated Other Comprehensive Income (Loss) - Equity (Details) - USD ($) $ / shares in Units, $ in Millions | Jul. 27, 2018 | Sep. 30, 2018 | Sep. 30, 2019 | Jun. 30, 2019 |
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 | ||
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 | |||
Shares Issued, Price Per Share | $ 40.24 | |||
Equity offering, sale of common stock | $ 445.5 | $ 445.5 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Number of Shares | 500,000 | |||
Preferred Stock, Shares Issued | 650,000 | 650,000 | ||
Stock Repurchase Program, Authorized Amount | $ 100 |
Equity and Accumulated Other _4
Equity and Accumulated Other Comprehensive Income (Loss) - Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Foreign currency translation adjustments: | ||
Net investment hedge | $ 20.3 | $ (4.2) |
Long-term intercompany loans | (6.5) | (3.3) |
Translation adjustments | (32.3) | (2.8) |
Total foreign currency translation adjustment, pretax | (18.5) | (10.3) |
Tax expense/(benefit) | 3.3 | (1.5) |
Total foreign currency translation adjustment, net of tax | (21.8) | (8.8) |
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) | 0.3 | (0.2) |
Net change in minimum pension liability, net of tax | $ (0.3) | $ 0.4 |
Equity and Accumulated Other _5
Equity and Accumulated Other Comprehensive Income (Loss) - Rollforward (Details) - USD ($) $ in Millions | 3 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Beginning Balance | $ (353.9) | |
Other comprehensive income/(loss) before reclassifications | (21.8) | |
Amounts reclassified from accumulated other comprehensive income/(loss) | (0.3) | |
Total foreign currency translation adjustment, net of tax | (21.8) | $ (8.8) |
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, after Tax | (0.3) | 0.4 |
Other comprehensive income/(loss), net of tax | (22.1) | $ (8.4) |
Ending Balance | (376) | |
Accumulated Translation Adjustment [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Beginning Balance | (303.7) | |
Other comprehensive income/(loss) before reclassifications | (21.8) | |
Amounts reclassified from accumulated other comprehensive income/(loss) | 0 | |
Total foreign currency translation adjustment, net of tax | (21.8) | |
Ending Balance | (325.5) | |
Accumulated Defined Benefit Plans Adjustment [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Beginning Balance | (49.1) | |
Other comprehensive income/(loss) before reclassifications | 0 | |
Amounts reclassified from accumulated other comprehensive income/(loss) | (0.3) | |
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, after Tax | 0.3 | |
Ending Balance | (49.4) | |
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 | |
Other Comprehensive Income (Loss), Securities, Available-for-sale, Adjustment, after Tax | 0 | |
Ending Balance | $ (1.1) |
Equity (Details)
Equity (Details) - USD ($) | 3 Months Ended | |||
Sep. 30, 2019 | Jun. 30, 2019 | May 17, 2019 | Jul. 27, 2018 | |
Redeemable Preferred Stock [Line Items] | ||||
Preferred Stock, Shares Authorized | 100,000,000 | 100,000,000 | ||
Preferred Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 | ||
Preferred Stock, Shares Issued | 650,000 | 650,000 | ||
Preferred Stock, Issuance Value | $ 650,000,000 | |||
Preferred Stock, Value, Issued | 1,000 | |||
Shares Issued, Price Per Share | $ 40.24 | |||
Preferred Stock, Value, Outstanding | 0 | $ 0 | ||
Preferred stock issuance Value, Net | 646,300,000 | |||
Payments of Stock Issuance Costs | $ 3,700,000 | |||
Preferred Stock, Dividend Rate, Percentage | 5.00% | |||
Preferred stock, dividend rate range: low | 6.50% | |||
Preferred stock, dividend rate range: high | 8.00% | |||
Common Stock Price of Conversion Price, Percent | 150.00% | |||
Embedded Derivative, Estimate of Embedded Derivative Liability | $ 39,700,000 | |||
Proceeds from Issuance of Preferred Stock and Preference Stock | $ 606,600,000 | |||
Redeemable Preferred Stock [Member] | ||||
Redeemable Preferred Stock [Line Items] | ||||
Shares Issued, Price Per Share | $ 49.54 | |||
Payments of Stock Issuance Costs | $ 3,700,000 | |||
Designated shares [Member] | ||||
Redeemable Preferred Stock [Line Items] | ||||
Preferred Stock, Shares Authorized | 1,000,000 |
Leases - Schedule of Operating
Leases - Schedule of Operating and Finance Leases Presented in the Balance Sheet (Details) $ in Millions | Sep. 30, 2019USD ($) |
Assets and Liabilities, Lessee [Abstract] | |
Finance Lease, Right-of-Use Asset | $ 122.9 |
Operating Lease, Right-of-Use Asset | 65.7 |
Finance Lease, Liability, Current | 9.5 |
Operating Lease, Liability, Current | 10.6 |
Finance Lease, Liability, Noncurrent | 157.3 |
Operating Lease, Liability, Noncurrent | $ 56.6 |
Leases - Cost (Details)
Leases - Cost (Details) $ in Millions | 3 Months Ended |
Sep. 30, 2019USD ($) | |
Lease, Cost [Abstract] | |
Finance Lease, Right-of-Use Asset, Amortization | $ 1.9 |
Finance Lease, Interest Expense | 3.1 |
Finance Lease Expense | 5 |
Operating Lease, Expense | 4.2 |
Variable Lease, Cost | 1.7 |
Lease, Cost | $ 10.9 |
Finance Lease, Weighted Average Remaining Lease Term | 16 years 1 month 6 days |
Operating Lease, Weighted Average Remaining Lease Term | 9 years 2 months 12 days |
Finance Lease, Weighted Average Discount Rate, Percent | 6.70% |
Operating Lease, Weighted Average Discount Rate, Percent | 4.40% |
Leases - Schedule of Supplement
Leases - Schedule of Supplemental Cash Flow Information (Details) $ in Millions | 3 Months Ended |
Sep. 30, 2019USD ($) | |
Cash Paid For Amounts Included In Measurement Of Lease Liabilities [Abstract] | |
Finance Lease, Principal Payments | $ 2.2 |
Finance Lease, Interest Payment on Liability | 3.1 |
Operating Lease, Payments | 2.4 |
Right-of-Use Asset Obtained in Exchange for Finance Lease Liability | 4.1 |
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability | $ 23.7 |
Leases - Schedule of Maturities
Leases - Schedule of Maturities of Operating And Finance Lease Liabilities (Details) $ in Millions | Sep. 30, 2019USD ($) |
Leases [Abstract] | |
Finance Lease, Liability, Payments, Remainder of Fiscal Year | $ 15.8 |
Finance Lease, Liability, Payments, Due Year Two | 20 |
Finance Lease, Liability, Payments, Due Year Three | 17.9 |
Finance Lease, Liability, Payments, Due Year Four | 17.4 |
Finance Lease, Liability, Payments, Due Year Five | 16.8 |
Finance Lease, Liability, Payments, Due after Year Five | 181.2 |
Finance Lease, Liability, Payment, Due | 269.1 |
Finance Lease, Liability, Undiscounted Excess Amount | 102.3 |
Finance Lease, Liability | 166.8 |
Lessee, Operating Lease, Liability, Payments, Remainder of Fiscal Year | 10 |
Lessee, Operating Lease, Liability, Payments, Due Year Two | 12.4 |
Lessee, Operating Lease, Liability, Payments, Due Year Three | 11.7 |
Lessee, Operating Lease, Liability, Payments, Due Year Four | 11.3 |
Lessee, Operating Lease, Liability, Payments, Due Year Five | 8 |
Lessee, Operating Lease, Liability, Payments, Due after Year Five | 30.6 |
Lessee, Operating Lease, Liability, Payments, Due | 84 |
Lessee, Operating Lease, Liability, Undiscounted Excess Amount | 16.8 |
Operating Lease, Liability | 67.2 |
Total Lease Liability Payments Remainder Of Fiscal Year | 25.8 |
Total Lease Liability Payments Due Year Two | 32.4 |
Total Lease Liability Payments Due Year Three | 29.6 |
Total Lease Liability Payments Due Year Four | 28.7 |
Total Lease Liability Payments Due Year Five | 24.8 |
Total Lease Liability Payments Due After Year Five | 211.8 |
Total Lease Liability Payments Due | 353.1 |
Total Lease Liability Undiscounted Excess Amount | 119.1 |
Total Lease Liability | $ 234 |
Segment Information - Net Reven
Segment Information - Net Revenue and Segment Ebitda (Detail) - USD ($) $ in Millions | 3 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Net revenue | $ 664.7 | $ 551.8 | |
Inter-segment revenue elimination | (4.8) | (2.5) | |
Impairment Charges And Gain Loss On Sale Of Assets | 0.2 | (2.9) | |
Stock-based compensation | 16.6 | 10 | |
Restructuring And Other Special Items | [1] | 11.8 | 13.2 |
Other Nonrecurring (Income) Expense | [2] | (4.9) | (5.7) |
Non Allocated Corporate Costs Net | 8.3 | 8 | |
Segment Reporting Information Unallocated Expense | [3] | (41.4) | (39.8) |
Softgel and Oral Technologies | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Net revenue | 263.7 | 240.1 | |
Segment EBITDA | 46.4 | 41.3 | |
Biologics | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Net revenue | 188.6 | 125.7 | |
Segment EBITDA | 35.8 | 27 | |
Oral and Specialty Drug Delivery | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Net revenue | 132.6 | 110.8 | |
Segment EBITDA | 27.7 | 18.9 | |
Clinical Supply Services | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Net revenue | 84.6 | 77.7 | |
Segment EBITDA | 21.6 | 20.2 | |
Total Catalent sub-total of Segment Reporting [Member] | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Segment EBITDA | $ 131.5 | $ 107.4 | |
[1] | Restructuring and other special items during the three months ended September 30, 2019 include transaction and integration costs associated with the Company’s gene therapy acquisitions, the disposal of one of our sites in Australia (which closed in October 2019), and other restructuring initiatives across the Company's network of sites. Restructuring and other special items during the three months ended September 30, 2018 include transaction and integration costs associated with the acquisitions of Catalent Indiana and Juniper. | ||
[2] | Refer to Note 8, Other (income)/expense, net, for details of financing charges and foreign currency translation adjustments recorded within other income/(expense), net. | ||
[3] | Unallocated costs include restructuring and special items, equity-based compensation, impairment charges, certain other corporate directed costs, and other costs that are not allocated to the segments as follows: |
Segment Information - Reconcili
Segment Information - Reconciliation of Earnings / (Loss) from Continuing Operations to Ebitda (Detail) - USD ($) $ in Millions | 3 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | ||
Segment Reporting [Abstract] | |||
Segment Reporting Information Unallocated Expense | [1] | $ 41.4 | $ 39.8 |
Depreciation and amortization | 60.6 | 52.9 | |
Interest expense, net | 36.3 | 28.1 | |
Income tax expense(benefit) | (6.9) | 1 | |
Earnings/(loss) from continuing operations | $ 0.1 | $ (14.4) | |
[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 - Total Ass
Segment Information - Total Assets for Each Segment and Reconciling in Consolidated Financial Statements (Detail) - USD ($) $ in Millions | Sep. 30, 2019 | Jun. 30, 2019 |
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | $ 6,119.5 | $ 6,184 |
Softgel and Oral Technologies | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | 1,478.7 | 1,586.5 |
Biologics | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | 2,849.3 | 2,825.7 |
Oral and Specialty Drug Delivery | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | 1,190.9 | 1,098.7 |
Clinical Supply Services | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | 464.9 | 463.2 |
Corporate and Eliminations [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | $ 135.7 | $ 209.9 |
Supplemental Balance Sheet In_3
Supplemental Balance Sheet Information - Inventory (Detail) - USD ($) $ in Millions | Sep. 30, 2019 | Jun. 30, 2019 |
Inventory, Net [Abstract] | ||
Raw materials and supplies | $ 169.5 | $ 161.6 |
Work-in-process & Finished goods | 101.6 | 115 |
Total inventories, gross | 271.1 | 276.6 |
Inventory cost adjustment | (20.4) | (19.4) |
Inventories | $ 250.7 | $ 257.2 |
Supplemental Balance Sheet In_4
Supplemental Balance Sheet Information - Prepaid and Other Assets (Detail) - USD ($) $ in Millions | Sep. 30, 2019 | Jun. 30, 2019 | |
Prepaid Expense and Other Assets, Current [Abstract] | |||
Prepaid expenses | $ 41.1 | $ 18.7 | |
Contract with Customer, Asset, Net, Current | 16.1 | 23.3 | |
Assets Held-for-sale | [1] | 11.7 | 0 |
Spare parts supplies | 8.4 | 8.1 | |
Prepaid income tax | 9.9 | 10 | |
Non-U.S. value added tax | 12.3 | 16.4 | |
Other current assets | 25.3 | 23.6 | |
Prepaid expenses and other | $ 124.8 | $ 100.1 | |
[1] | In fiscal 2018, the Company agreed to sell its facility in Braeside, Australia, which is part of the Softgel and Oral Technologies segment. As of September 30, 2019, the facility's assets met the criteria to be classified as held for sale; as a result, these assets and liabilities have been reclassified within the other assets and liabilities line on the consolidated balance sheets. Non-current assets held for sale and current liabilities held for sale of $29.1 million and $12.2 million, respectively, are presented in Other assets and Other accrued liabilities, respectively on the consolidated balance sheet as of September 30, 2019. The sale transaction closed in the second quarter of fiscal 2020. |
Supplemental Balance Sheet In_5
Supplemental Balance Sheet Information - Property and Equipment (Detail) - USD ($) $ in Millions | 3 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Jun. 30, 2019 | |
Property, Plant and Equipment, Net [Abstract] | |||
Land Buildings And Improvements | $ 1,046.3 | $ 1,049.4 | |
Machinery, equipment, and capitalized software | 1,102 | 1,104.9 | |
Furniture and fixtures | 17.1 | 16.9 | |
Construction in progress | 315.1 | 278.9 | |
Property, plant, and equipment, at cost | 2,480.5 | 2,450.1 | |
Accumulated depreciation | (919.4) | (913.4) | |
Property, plant, and equipment, net | 1,561.1 | $ 1,536.7 | |
Depreciation Expense on Reclassified Assets | $ 39.1 | $ 34.7 |
Supplemental Balance Sheet In_6
Supplemental Balance Sheet Information - Other Accrued Liabilities (Detail) - USD ($) $ in Millions | Sep. 30, 2019 | Jun. 30, 2019 | |
Balance Sheet Related Disclosures [Abstract] | |||
Accrued employee-related expenses | $ 83.4 | $ 103.9 | |
Restructuring accrual | 5.7 | 8.2 | |
Accrued interest | 17.4 | 11.7 | |
Contract liability | 159.6 | 155.2 | |
Accrued income tax | 0 | 8.5 | |
Current liabilities held for sale | [1] | 12.2 | 0 |
Other accrued liabilities and expenses | 49.2 | 50.9 | |
Other accrued liabilities | $ 327.5 | $ 338.4 | |
[1] | In fiscal 2018, the Company agreed to sell its facility in Braeside, Australia, which is part of the Softgel and Oral Technologies segment. As of September 30, 2019, the facility's assets met the criteria to be classified as held for sale; as a result, these assets and liabilities have been reclassified within the other assets and liabilities line on the consolidated balance sheets. Non-current assets held for sale and current liabilities held for sale of $29.1 million and $12.2 million, respectively, are presented in Other assets and Other accrued liabilities, respectively on the consolidated balance sheet as of September 30, 2019. The sale transaction closed in the second quarter of fiscal 2020. |