Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Mar. 31, 2020 | May 01, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2020 | |
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 | Q3 | |
Entity Central Index Key | 0001596783 | |
Current Fiscal Year End Date | --06-30 | |
Entity Common Stock, Shares Outstanding (shares) | 154,897,515 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | |
Income Statement [Abstract] | ||||
Net revenue | $ 760.6 | $ 617.5 | $ 2,146.7 | $ 1,792.3 |
Cost of sales | 521.8 | 418.8 | 1,498 | 1,243.7 |
Gross margin | 238.8 | 198.7 | 648.7 | 548.6 |
Selling, general, and administrative expenses | 136.1 | 129.9 | 419.9 | 368.6 |
Impairment charges and (gain)/loss on sale of assets | 0.6 | (0.1) | 2.1 | 2.7 |
Restructuring and other | 1.3 | 3.1 | 2.5 | 12.9 |
Operating earnings | 100.8 | 65.8 | 224.2 | 164.4 |
Interest expense, net | 34.4 | 26.4 | 105.6 | 80 |
Other (income)/expense, net | 36.7 | (3.2) | 37.2 | 3.9 |
Earnings from continuing operations, before income taxes | 29.7 | 42.6 | 81.4 | 80.5 |
Income tax expense | 8.8 | 10.9 | 14.9 | 14.2 |
Net earnings/(loss) | 20.9 | 31.7 | 66.5 | 66.3 |
Participating Securities, Distributed and Undistributed Earnings (Loss), Basic | (9.1) | 0 | (27.8) | 0 |
Net Income (Loss) Available to Common Stockholders, Basic | $ 11.8 | $ 31.7 | $ 38.7 | $ 66.3 |
Earnings Per Share, Basic | $ 0.08 | $ 0.22 | $ 0.26 | $ 0.46 |
Earnings Per Share, Diluted | $ 0.08 | $ 0.22 | $ 0.26 | $ 0.46 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income / (Loss) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | |
Other comprehensive income/(loss), net of tax | ||||
Net earnings/(loss) | $ 20.9 | $ 31.7 | $ 66.5 | $ 66.3 |
Foreign currency translation adjustments | (43.1) | 21.5 | (42.8) | (4.9) |
Pension and other post-retirement adjustments | 0.1 | 0.4 | 3.1 | 1.4 |
Other comprehensive income/(loss), net of tax | (43) | 21.9 | (39.7) | (3.5) |
Comprehensive income/(loss) | $ (22.1) | $ 53.6 | $ 26.8 | $ 62.8 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Mar. 31, 2020 | Jun. 30, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 608.4 | $ 345.4 |
Trade receivables, net | 698.7 | 693.1 |
Inventories | 297.2 | 257.2 |
Prepaid expenses and other | 141.8 | 100.1 |
Total current assets | 1,746.1 | 1,395.8 |
Property, plant, and equipment, net | 1,769.5 | 1,536.7 |
Other assets: | ||
Goodwill | 2,449.3 | 2,220.9 |
Other intangibles, net | 907.3 | 930.8 |
Deferred Income Tax Assets, Net | 45.1 | 38.6 |
Other Assets, Noncurrent | 162.3 | 61.2 |
Total assets | 7,079.6 | 6,184 |
Current Liabilities: | ||
Debt, Current | 271.8 | 76.5 |
Accounts payable | 276.2 | 255.8 |
Other accrued liabilities | 369.1 | 338.4 |
Total current liabilities | 917.1 | 670.7 |
Long-term obligations, less current portion | 2,926.9 | 2,882.8 |
Pension liability | 137.6 | 143.6 |
Deferred Income Taxes | 95.6 | 74.4 |
Other liabilities | 208.1 | 124.3 |
Commitments and Contingencies (see Note 16) | 0 | 0 |
Total liabilities | 4,285.3 | 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 | 3,261 | 2,757.4 |
Accumulated deficit | (681.2) | (723.4) |
Accumulated other comprehensive income/(loss) | (393.6) | (353.9) |
Total shareholders' equity | 2,187.7 | 1,681.6 |
Total liabilities, redeemable preferred stock, and shareholders’ equity | $ 7,079.6 | $ 6,184 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2020 | 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) | 154,867,791 | 145,738,286 |
Common Stock, Shares, Outstanding | 154,867,791 | 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, | 445.3 | 0.1 | 445.2 | ||
Stock Issued During Period, Value, Stock Options Exercised | 0 | 0.1 | (0.1) | ||
Stock-based compensation | 24.1 | 24.1 | |||
Cash paid, in lieu of equity, for tax withholding | (13.3) | (13.3) | |||
Net earnings/(loss) | 66.3 | 66.3 | |||
Other comprehensive income/(loss), net of tax | (3.5) | (3.5) | |||
Ending Balance at Mar. 31, 2019 | 1,620.7 | $ 1.5 | 2,739.2 | (790.7) | (329.3) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Equity offering, sale of common stock | 11,431,400 | ||||
Beginning Balance at Dec. 31, 2018 | 1,563 | $ 1.5 | 2,735.1 | (822.4) | (351.2) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Equity offering, sale of common stock, | (0.2) | (0.2) | |||
Stock Issued During Period, Value, Stock Options Exercised | 0 | ||||
Stock-based compensation | 6.6 | 6.6 | |||
Cash paid, in lieu of equity, for tax withholding | (2.3) | (2.3) | |||
Net earnings/(loss) | 31.7 | 31.7 | |||
Other comprehensive income/(loss), net of tax | 21.9 | 21.9 | |||
Ending Balance at Mar. 31, 2019 | 1,620.7 | $ 1.5 | 2,739.2 | (790.7) | (329.3) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Equity offering, sale of common stock | |||||
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] | |||||
Equity offering, sale of common stock, | 494.2 | 0.1 | 494.1 | ||
Stock Issued During Period, Value, Stock Options Exercised | 0 | ||||
Stock-based compensation | 35.5 | 35.5 | |||
Cash paid, in lieu of equity, for tax withholding | (25.3) | (25.3) | |||
Non-qualified stock | (0.7) | (0.7) | |||
Dividends, Preferred Stock | 24.3 | 24.3 | |||
Net earnings/(loss) | 66.5 | 66.5 | |||
Other comprehensive income/(loss), net of tax | (39.7) | (39.7) | |||
Ending Balance at Mar. 31, 2020 | 2,187.7 | $ 1.5 | 3,261 | (681.2) | (393.6) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Equity offering, sale of common stock | 8,445,900 | ||||
Beginning Balance at Dec. 31, 2019 | 1,716.1 | $ 1.5 | 2,759.2 | (694) | (350.6) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Equity offering, sale of common stock, | 494.2 | 0.1 | 494.1 | ||
Stock Issued During Period, Value, Stock Options Exercised | 0 | ||||
Stock-based compensation | 8.6 | 8.6 | |||
Cash paid, in lieu of equity, for tax withholding | (0.9) | (0.9) | |||
Dividends, Preferred Stock | 8.1 | 8.1 | |||
Net earnings/(loss) | 20.9 | 20.9 | |||
Other comprehensive income/(loss), net of tax | (43) | (43) | |||
Ending Balance at Mar. 31, 2020 | $ 2,187.7 | $ 1.5 | $ 3,261 | $ (681.2) | $ (393.6) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Equity offering, sale of common stock | 8,445,900 |
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 | 9 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning Balance - Common Stock Outstanding (shares) | 145,738,286 | |||
Ending Balance - Common Stock Outstanding (shares) | 154,867,791 | 154,867,791 | ||
Common Stock | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning Balance - Common Stock Outstanding (shares) | 146,359,500 | 145,622,900 | 145,738,300 | 133,423,600 |
Equity offering, sale of common stock | 8,445,900 | 8,445,900 | 11,431,400 | |
Share issuances related to stock-based compensation | 62,400 | 83,900 | 683,600 | 851,800 |
Ending Balance - Common Stock Outstanding (shares) | 154,867,800 | 145,706,800 | 154,867,800 | 145,706,800 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 9 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net earnings/(loss) | $ 66.5 | $ 66.3 |
Adjustments to reconcile earnings/(loss) from operations to net cash from operations: | ||
Depreciation and amortization | 187.3 | 173.9 |
Non-cash foreign currency transaction (gain)/loss, net | 2.5 | (1.7) |
Amortization and write-off of debt financing costs | 10.7 | 7.1 |
Asset impairments charges and (gain)/loss on sale of assets | 2.1 | 2.7 |
Debt Call Premium Fees | 10 | 0 |
Derivative, Gain (Loss) on Derivative, Net | (24.9) | 0 |
Stock-based compensation | 35.5 | 24.1 |
Provision/(benefit) for deferred income taxes | (5.4) | 0.7 |
Provision for bad debts and inventory | 11.4 | 10.6 |
Change in operating assets and liabilities: | ||
Decrease/(increase) in trade receivables | (15.5) | (26.6) |
Decrease/(increase) in inventories | (54.7) | (43.1) |
Increase/(decrease) in accounts payable | 29.9 | 5.9 |
Other assets/accrued liabilities, net — current and non-current | (48.4) | (58.7) |
Net Cash Provided by (Used in) Operating Activities, Total | 267.6 | 159.8 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Acquisition of property and equipment and other productive assets | (303.5) | (129.3) |
Proceeds from Divestiture of Interest in Consolidated Subsidiaries | 20.8 | 0.4 |
Payment for acquisitions, net of cash acquired | (379.7) | (127.5) |
Payments to Acquire Investments | 2.4 | 1.3 |
Net cash (used in) investing activities | (664.8) | (257.7) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Net change in other borrowings | (45.2) | (6.5) |
Proceeds from Issuance of Debt | 1,109.1 | 0 |
Payments related to long-term obligations | (808.9) | (508) |
Payments of Debt Issuance Costs | 25.1 | 0 |
Dividends and Interest Paid | 28.1 | 0 |
Proceeds from sale of common stock, net | 494.2 | 445.3 |
Cash paid, in lieu of equity, for tax withholding | (25.3) | (13.3) |
Net cash (used in)/provided by financing activities | 670.7 | (82.5) |
Effect of foreign currency exchange on cash | (10.5) | (1.9) |
NET INCREASE/(DECREASE) IN CASH AND EQUIVALENTS | 263 | (182.3) |
CASH AND EQUIVALENTS AT BEGINNING OF PERIOD | 345.4 | 410.2 |
CASH AND EQUIVALENTS AT END OF PERIOD | 608.4 | 227.9 |
SUPPLEMENTARY CASH FLOW INFORMATION: | ||
Interest paid | 88.7 | 74.6 |
Income taxes paid, net | $ 38.9 | $ 35.4 |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 9 Months Ended |
Mar. 31, 2020 | |
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 nine months ended March 31, 2020 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 the first quarter of 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, viral vector gene therapy, and cell 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. Contract assets previously presented in trade receivables, net are now presented in prepaid expenses and other, which amounts are further detailed in Note 18, Supplemental Balance Sheet Information . 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 $0.6 million and $1.8 million for the three and nine months ended March 31, 2020 , respectively, and $0.9 million an d $2.4 million for the three and nine months ended March 31, 2019 , 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 $15.8 million and $44.3 million for the three and nine months ended March 31, 2020, respectively, and $11.8 million and $37.4 million for the three and nine months ended March 31, 2019, 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 March 31, 2020 In March 2020, the FASB issued ASU 2020-04 , Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting , which provides optional guidance to ease the potential burden in accounting for the discontinuation of a reference rate such as LIBOR, formerly known as the London Interbank Offered Rate, because of reference rate reform. The expedients and exceptions provided by the guidance do not apply to contract modifications made and hedging relationships entered into or evaluated after December 31, 2022. The ASU is effective for all entities as of March 12, 2020 through December 31, 2022. The Company is currently evaluating the impact of adopting this guidance on its consolidated financial statements. In December 2019, the FASB issued ASU 2019-12 , Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes , which eliminates certain exceptions related to the incremental approach for intraperiod allocation, deferred tax recognition requirement for changes in equity method investments and foreign subsidiaries, and methodology for calculating income taxes in an interim period. The guidance also simplifies certain aspects of the accounting for franchise taxes, the accounting for step-up in the tax basis of goodwill, and accounting for the change in the enacted change in tax laws or rates. The ASU will be effective for fiscal years beginning after December 15, 2020 and interim periods within those fiscal years. The Company is currently evaluating the impact of adopting this guidance on its consolidated financial statements. 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 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 | 9 Months Ended |
Mar. 31, 2020 | |
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 and nine months ended March 31, 2020 and March 31, 2019, by type of activity and reporting segment (in millions): Three Months Ended March 31, 2020 Softgel & Oral Technologies Biologics Oral & Specialty Delivery Clinical Supply Services Total Manufacturing & commercial product supply $ 217.6 $ 85.2 $ 127.2 $ — $ 430.0 Development services 24.7 164.8 54.2 — 243.7 Clinical supply services — — — 88.9 88.9 Total $ 242.3 $ 250.0 $ 181.4 $ 88.9 $ 762.6 Inter-segment revenue elimination (2.0) Combined net revenue $ 760.6 Three Months Ended March 31, 2019 Softgel & Oral Technologies Biologics Oral & Specialty Delivery Clinical Supply Services Total Manufacturing & commercial product supply $ 232.9 $ 66.8 $ 99.7 $ — $ 399.4 Development services 21.1 66.9 54.1 — 142.1 Clinical supply services — — — 77.8 77.8 Total $ 254.0 $ 133.7 $ 153.8 $ 77.8 $ 619.3 Inter-segment revenue elimination (1.8) Combined net revenue $ 617.5 Nine Months Ended March 31, 2020 Softgel & Oral Technologies Biologics Oral & Specialty Delivery Clinical Supply Services Total Manufacturing & commercial product supply $ 701.5 $ 229.6 $ 294.5 $ — $ 1,225.6 Development services 69.3 434.2 162.7 — 666.2 Clinical supply services — — — 261.4 261.4 Total $ 770.8 $ 663.8 $ 457.2 $ 261.4 $ 2,153.2 Inter-segment revenue elimination (6.5) Combined net revenue $ 2,146.7 Nine Months Ended March 31, 2019 Softgel & Oral Technologies Biologics Oral & Specialty Delivery Clinical Supply Services Total Manufacturing & commercial product supply $ 680.8 $ 168.1 $ 262.4 $ — $ 1,111.3 Development services 67.7 227.7 156.7 — 452.1 Clinical supply services — — — 236.3 236.3 Total $ 748.5 $ 395.8 $ 419.1 $ 236.3 $ 1,799.7 Inter-segment revenue elimination (7.4) Combined net revenue $ 1,792.3 The following table allocates revenue by the location where the goods were made or the service performed: (Dollars in millions) Three Months Ended March 31, 2020 Three Months Ended March 31, 2019 Nine Months Ended March 31, 2020 Nine Months Ended March 31, 2019 United States $ 438.9 $ 318.4 $ 1,215.9 $ 913.9 Europe 258.7 200.8 690.1 609.9 International Other 83.5 108.2 299.8 321.6 Elimination of revenue attributable to multiple locations (20.5) (9.9) (59.1) (53.1) Total $ 760.6 $ 617.5 $ 2,146.7 $ 1,792.3 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 nine months ended March 31, 2020 are as follows: (Dollars in millions) Contract liability Balance at June 30, 2019 $ 177.4 Balance at March 31, 2020 $ 180.0 Revenue recognized in the period from: Amounts included in contract liability at the beginning of the period $ 117.2 |
Business Combinations
Business Combinations | 9 Months Ended |
Mar. 31, 2020 | |
Business Combinations [Abstract] | |
Business Combination Disclosure [Text Block] | BUSINESS COMBINATIONS Paragon Bioservices, Inc. Acquisition On May 17, 2019, the Company acquired 100% of the equity interest in Catalent Maryland, Inc. (formerly Paragon Bioservices, Inc., “Gene Therapy”) 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 . Gene Therapy 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 of fiscal 2020, the Company received an escrow refund of $7.6 million related to an 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. Novavax Transaction Overview On July 31, 2019, Gene Therapy 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. Gene Therapy 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 Gene Therapy’s early-development capabilities and supplemented Gene Therapy’s pool of experienced biologics operatives to support its growth. Anagni Acquisition Pursuant to a June 2019 agreement between Operating Company and a unit of Bristol-Myers Squibb Company (“BMS”), Operating Company acquired BMS’s oral solid, biologics, and sterile product manufacturing and packaging facility in Anagni, Italy on January 1, 2020. The Company paid to BMS $55.3 million in cash as part of the purchase consideration and as consideration for the provision of certain services to facilitate the transition from BMS to Company ownership. At the closing of this acquisition, BMS also entered into a five-year agreement for continuing supply by the Company of certain products formerly produced by BMS at the Anagni facility. Due to the variety of activities performed at Anagni, the results of the Anagni facility are allocated between the Oral and Specialty Delivery and Biologics segments. The total cash consideration was allocated between the facility purchase and the transitional services arrangement, with $52.2 million assigned to the purchase consideration and the balance to transitional services. The Company funded the entire amount with cash on hand and has preliminarily allocated the purchase price among the acquired assets, recognizing property, plant, and equipment of $34.2 million, inventory of $7.0 million, and prepaid expenses and other of $12.4 million. The remainder of the value was allocated to deferred tax assets and certain employee-related liabilities assumed in the acquisition. The Company expects to finalize its allocation over the next several months, but, in any event, within one year from the closing. MaSTherCell Global Inc . Acquisition Transaction Overview On February 10, 2020, the Company acquired 100% of the equity interest in Masthercell Global Inc. (“MaSTherCell”) for an aggregate purchase price of $323.3 million, subject to adjustment, which was funded with the net proceeds of the Company’s February 2020 offering (the “February 2020 Equity Offering”) of its common stock, par value $0.01 (“Common Stock”). See Note 13, Equity and Accumulated Other Comprehensive Income/(Loss) . MaSTherCell is a CDMO focused on the development and manufacture of autologous and allogeneic cell therapies for third parties, as well as a variety of related analytical services. MaSTherCell has a facility in Gosselies, Belgium providing clinical services, and construction is in progress there on a dedicated commercial-scale production and fill-finish facility, which is scheduled to open in the fall of 2021. Its U.S. facility in Houston, Texas, upon completion of validation activities, will focus on development-scale projects. The Company accounted for the MaSTherCell acquisition using the acquisition method in accordance with ASC 805, Business Combinations . The operating results of MaSTherCell have been included in the Company’s consolidated financial statements for the period following the acquisition date. For the period from the acquisition date through March 31, 2020, MaSTherCell’s net revenue was $5.1 million and pre-tax earnings were $0.5 million. Transaction costs incurred as a result of the acquisition of $3.1 million are included in selling, general, and administrative expenses for the period ended March 31, 2020. Valuation Assumptions and Preliminary Purchase Price Allocation The Company has preliminarily estimated fair values at the date of acquisition for the preliminary allocation of consideration to the net tangible and intangible assets acquired and liabilities assumed as part of the MaSTherCell acquisition. 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 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. The preliminary purchase price allocation to assets acquired and liabilities assumed in the transaction is (in millions): Property, plant, and equipment $ 25.5 Identifiable intangible assets 51.0 Other net assets 2.0 Deferred income tax liabilities (13.4) Total identifiable net assets $ 65.1 Goodwill 258.2 Total assets acquired and liabilities assumed $ 323.3 The carrying values of trade receivables, raw materials inventory, and trade payables, as well as certain other current and non-current assets and liabilities generally represented their fair values at the date of acquisition. Property, plant, and equipment was valued using the cost approach, which is based on the current replacement or reproduction cost of the asset as new, less depreciation attributable to physical, functional, and economic factors. The Company then determined the remaining useful life based on the anticipated life of the asset and Company policy for similar assets. Customer-relationship intangible assets of $46.3 million were valued using the multi-period, excess-earnings method, a method that values the intangible asset using the present value of the after-tax cash flows attributable to the intangible asset only. The significant assumptions used in developing the valuation included the estimated annual net cash flows (including application of an appropriate margin to forecasted revenue, selling and marketing costs, return on working capital, contributory asset charges, and other factors), the discount rate that appropriately reflects the risk inherent in each future cash flow stream, and an assessment of the asset’s life cycle, as well as other factors. The assumptions used in the financial forecasts were based on historical data, supplemented by current and anticipated growth rates, management plans, and market-comparable information. Fair-value determinations require considerable judgment and are sensitive to changes in underlying assumptions, among other things. Preliminary assumptions may change and may result in adjustments to the final valuation. The customer relationship intangible asset has a weighted average useful life of 13 years. Goodwill has been allocated to our Biologics segment as shown in Note 4, Goodwill . Goodwill is mainly comprised of the following: growth from an expected increase in capacity utilization, potential new customers, and advanced cell therapy development and manufacturing capabilities. |
Goodwill
Goodwill | 9 Months Ended |
Mar. 31, 2020 | |
Goodwill Disclosure [Abstract] | |
Goodwill | GOODWILL The following table summarizes the changes between June 30, 2019 and March 31, 2020 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 — 260.6 — — 260.6 Reallocation 108.1 (124.3) 16.2 — — Other (1.4) (6.8) 1.1 — (7.1) Foreign currency translation adjustments (13.0) (1.3) (6.0) (4.8) (25.1) Balance at March 31, 2020 $ 502.9 $ 1,448.2 $ 351.6 $ 146.6 $ 2,449.3 The addition to goodwill in the Biologics reporting segment relates to the Novavax and MaSTherCell transactions. 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 | 9 Months Ended |
Mar. 31, 2020 | |
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 March 31, 2020 and June 30, 2019 are as follows: (Dollars in millions) Weighted Average Life Gross Carrying Value Accumulated Amortization Net Carrying Value March 31, 2020 Amortized intangibles: Core technology 19 years $ 133.1 $ (80.3) $ 52.8 Customer relationships 14 years 1,016.6 (228.3) 788.3 Product relationships 11 years 268.0 (212.9) 55.1 Other 4 years 14.5 (3.4) 11.1 Total intangible assets $ 1,432.2 $ (524.9) $ 907.3 (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 and product relationships as of March 31, 2020 compared to the prior-year period are associated with the sale of an intangible property licensing right and the disposal from the sale of the Company’s facility in Braeside, Australia. Amortization expense was $23.0 million and $66.3 million for the three and nine months ended March 31, 2020, respectively, and $31.4 million and $69.1 million for the three and nine months ended March 31, 2019, 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 $ 23.0 $ 91.8 $ 91.2 $ 90.5 $ 89.9 $ 89.0 |
Long-Term Obligations and Other
Long-Term Obligations and Other Short-Term Borrowings | 9 Months Ended |
Mar. 31, 2020 | |
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 March 31, 2020 and June 30, 2019: (Dollars in millions) Maturity as of March 31, 2020 March 31, 2020 June 30, 2019 Senior secured credit facilities Term loan facility U.S. dollar-denominated May 2026 $ 930.5 $ 936.2 Term loan facility euro-denominated May 2024 — 346.8 Revolving credit facility May 2024 200.0 — Euro-denominated 4.75% Senior Notes due 2024 December 2024 — 428.3 U.S. dollar-denominated 4.875% Senior Notes due 2026 January 2026 445.2 444.6 U.S. dollar-denominated 5.00% Senior Notes due 2027 July 2027 492.8 492.1 Euro-denominated 2.375% Senior Notes due 2028 March 2028 894.1 — Deferred purchase consideration October 2021 96.7 143.9 Capital lease obligations 2020 to 2044 137.1 167.3 Other obligations 2020 to 2024 2.3 0.1 Total $ 3,198.7 $ 2,959.3 Less: current portion of long-term obligations and other short-term 271.8 76.5 Long-term obligations, less current portion $ 2,926.9 $ 2,882.8 Euro-denominated 2.375% Senior Notes due 2028 In March 2020, Operating Company completed a private offering of €825.0 million aggregate principal amount of 2.375% Senior Notes due 2028 (the "Euro 2028 Notes"). The Euro 2028 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 2028 Notes were offered in the U.S. to qualified institutional buyers in reliance on Rule 144A under the Securities Act of 1933, as amended (the “ Securities Act ” ) and outside the U.S. only to non-U.S. investors pursuant to Regulation S under the Securities Act. The Euro 2028 Notes will mature on March 1, 2028, bear interest at the rate of 2.375% per annum and are payable semi-annually in arrears on March 1 and September 1 of each year. The proceeds of the Euro 2028 Notes after payment of the offering fees and expenses were used to repay in full the outstanding borrowings under Operating Company's euro-denominated term loans under its senior secured credit agreement that mature in May 2024 and euro-denominated 4.75% Senior Notes that mature in December 2024, plus any accrued and unpaid interest thereon, with the remainder available for general corporate purposes. Previously, the Company disclosed that the maturity date set forth in the table above for its U.S. dollar-denominated term loan was earlier than stated if any of its euro-denominated 4.75% Senior Notes was still outstanding at its maturity. Having paid off that euro debt, the exception no longer applies. Revolving Credit Facility The Company borrowed $200.0 million in March 2020 under Operating Company's revolving credit facility prophylactically in response to unsettled market conditions resulting from the COVID-19 pandemic to increase liquidity for general corporate purposes. Such borrowing remained outstanding as of March 31, 2020 and bore interest at the rate of 2.93% during the portion of the three months ended March 31, 2020 when such borrowing existed. The Company also incurred interest cost of $0.4 million as a result of borrowing $100.0 million under Operating Company's revolving credit facility in January 2020, which was repaid in February 2020 from a portion of the proceeds of the February 2020 Equity Offering. A portion of the proceeds of the January 2020 borrowing were used to pay the cash acquisition cost of land and buildings previously leased by Gene Therapy. 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 made installment payments in October 2018 and October 2019. 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. Fair Value of Debt Instruments The estimated fair values of the Company's senior secured credit facilities and other senior indebtedness 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 March 31, 2020 and June 30, 2019 are as follows: March 31, 2020 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 $ — $ — $ 428.3 $ 454.2 U.S. dollar-denominated 4.875% senior notes Level 2 445.2 438.7 444.6 457.0 U.S. dollar-denominated 5.00% senior notes Level 2 492.8 482.7 492.1 509.0 Euro-denominated 2.375% senior notes due Level 2 894.1 789.2 — — Senior secured credit facilities & other Level 2 1,366.6 1,334.7 1,594.3 1,526.0 Total $ 3,198.7 $ 3,045.3 $ 2,959.3 $ 2,946.2 |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | EARNINGS PER SHARE The Company computes earnings per share (“EPS”) of the Company's 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 and nine months ended March 31, 2020 and 2019, respectively, are as follows (in millions, except share and per share data): Three Months Ended Nine Months Ended 2020 2019 2020 2019 Net earnings $ 20.9 $ 31.7 $ 66.5 $ 66.3 Less: Net earnings attributable to preferred shareholders (9.1) — (27.8) — Net earnings attributable to common shareholders $ 11.8 $ 31.7 $ 38.7 $ 66.3 Weighted average shares outstanding 151,267,795 145,145,310 147,647,548 143,896,635 Weighted average dilutive securities issuable-stock plans 1,787,847 1,612,961 1,843,559 1,696,575 Total weighted average diluted shares outstanding 153,055,642 146,758,271 149,491,107 145,593,210 Earnings per share: Basic $ 0.08 $ 0.22 $ 0.26 $ 0.46 Diluted $ 0.08 $ 0.22 $ 0.26 $ 0.46 |
Other (Income)_ Expense, Net
Other (Income)/ Expense, Net | 9 Months Ended |
Mar. 31, 2020 | |
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 and nine months ended March 31, 2020 and 2019 are as follows: Three Months Ended Nine Months Ended (Dollars in millions) 2020 2019 2020 2019 Other (income)/expense, net Debt refinancing costs (1) $ 16.0 $ — $ 16.1 $ 4.2 Foreign currency (gains) and losses (2) (5.3) (3.2) (1.7) (0.8) Other (3) 26.0 — 22.8 0.5 Total other (income)/expense, net $ 36.7 $ (3.2) $ 37.2 $ 3.9 (1) The expense in the nine months ended March 31, 2019 includes a write-off of $4.2 million of previously capitalized financing charges related to the Company's U.S. dollar-denominated term loan under its senior secured credit facility. The expense in the three months ended March 31, 2020 includes (a) a write-off of $6.0 million of previously capitalized financing charges related to the Company's recently repaid euro-denominated term loan under its senior secured credit facilities and the Company's recently redeemed euro-denominated senior notes and (b) a $10.0 million premium on early redemption of the euro notes. (2) Foreign currency remeasurement (gains) and losses include both cash and non-cash transactions. (3) Included within Other for the three and nine months ended March 31, 2020 are unrealized losses of $26.3 million and $24.9 million, respectively, related to the fair value of the derivative liability associated with the Series A Preferred Stock. |
Restructuring and Other Costs
Restructuring and Other Costs | 9 Months Ended |
Mar. 31, 2020 | |
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 and nine months ended March 31, 2020 were $1.3 million and $2.5 million, respectively, and for the three and nine months ended March 31, 2019 were $3.1 million and $12.9 million, respectively. |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 9 Months Ended |
Mar. 31, 2020 | |
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 March 31, 2020, the Company had euro-denominated debt outstanding of $894.1 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 and nine months ended March 31, 2020 and 2019. Three Months Ended Nine Months Ended (Dollars in millions) 2020 2019 2020 2019 Unrealized foreign exchange gain/(loss) within other comprehensive income $ 3.7 $ 5.9 $ 17.5 $ 17.3 Unrealized foreign exchange gain/(loss) within statement of operations $ 1.9 $ 2.9 $ 7.7 $ 9.8 The net accumulated gain of the instrument designated as a hedge as of March 31, 2020 within other comprehensive income/(loss) was approximately $77.3 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. Refer to Note 19, Subsequent Events for details related to an interest rate swap entered into in April 2020. 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 $24.9 million on the change in the estimated fair value of the derivative liability from July 1, 2019 through March 31, 2020, primarily related to the volatility in the risk-free interest rate used to estimate the fair value, which is reflected as a non-operating expense in the consolidated statements of operations. The fair value of the derivative liability as of March 31, 2020 was $51.7 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 24.9 Balance at March 31, 2020 $ 51.7 |
Income Taxes
Income Taxes | 9 Months Ended |
Mar. 31, 2020 | |
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. 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 March 31, 2020 and June 30, 2019, the Company had an aggregate of $4.7 million and $5.2 million, respectively, of uncertain tax positions (including accrued interest and penalties). As of these dates, $3.6 million and $3.8 million, respectively, 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. The Company recorded a provision for income taxes for the three months ended March 31, 2020 of $8.8 million relative to earnings from operations before income taxes of $29.7 million. The Company recorded a provision for income taxes for the three months ended March 31, 2019 of $10.9 million relative to earnings from operations before income taxes of $42.6 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 | 9 Months Ended |
Mar. 31, 2020 | |
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 Nine Months Ended (Dollars in millions) 2020 2019 2020 2019 Components of net periodic benefit cost: Selling, general, and administrative expenses: Service cost $ 0.9 $ 0.9 $ 2.3 $ 2.7 Other (income)/expense, net: Interest cost 0.7 1.9 4.2 5.7 Expected return on plan assets (2.5) (2.7) (7.8) (7.9) Amortization (1) 2.6 0.6 4.1 1.8 Net amount recognized $ 1.7 $ 0.7 $ 2.8 $ 2.3 (1) Amount represents the amortization of unrecognized actuarial gains/(losses). |
Equity and Accumulated Other Co
Equity and Accumulated Other Comprehensive Income (Loss) | 9 Months Ended |
Mar. 31, 2020 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | EQUITY AND ACCUMULATED OTHER COMPREHENSIVE INCOME/(LOSS) Recent Public Offering of Common Stock On February 6, 2020, the Company completed the February 2020 Equity Offering, in which the Company sold 8.4 million shares of Common Stock at a price of $58.58 per share, net of underwriting discounts and commissions. The Company obtained total net proceeds from the February 2020 Equity Offering of $494.2 million. The net proceeds of the February 2020 Equity Offering were used to repay $100.0 million of borrowings earlier in the quarter under Operating Company's revolving credit facility and the consideration for the MaSTherCell acquisition due at its closing, with the remainder available for general corporate purpose. 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 March 31, 2020. 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 March 31, 2020. 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 and nine months ended March 31, 2020 and 2019 are presented below. Three Months Ended Nine Months Ended (Dollars in millions) 2020 2019 2020 2019 Foreign currency translation adjustments: Net investment hedge $ 3.7 $ 5.9 $ 17.5 $ 17.3 Long-term intercompany loans (26.9) 17.1 (15.3) 3.0 Translation adjustments (20.5) 0.9 (42.5) (20.9) Total foreign currency translation adjustment, pretax (43.7) 23.9 (40.3) (0.6) Tax expense/(benefit) (0.6) 2.4 2.5 4.3 Total foreign currency translation adjustment, net of tax $ (43.1) $ 21.5 $ (42.8) $ (4.9) Net change in minimum pension liability Net loss recognized during the period $ 1.2 $ 0.6 $ 4.1 $ 1.9 Total pension liability, pretax 1.2 0.6 4.1 1.9 Tax expense/(benefit) 1.1 0.2 1.0 0.5 Net change in minimum pension liability, net of tax $ 0.1 $ 0.4 $ 3.1 $ 1.4 For the three months ended March 31, 2020, 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 December 31, 2019 $ (303.4) $ (46.1) $ (1.1) $ (350.6) Other comprehensive income before (43.1) — — (43.1) Amounts reclassified from accumulated other — 0.1 — 0.1 Net current period other comprehensive income (43.1) 0.1 — (43.0) Balance at March 31, 2020 $ (346.5) $ (46.0) $ (1.1) $ (393.6) For the nine months ended March 31, 2020, 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 before reclassifications (42.8) — — (42.8) Amounts reclassified from accumulated other comprehensive income — 3.1 — 3.1 Net current period other comprehensive income (42.8) 3.1 — (39.7) Balance at March 31, 2020 $ (346.5) $ (46.0) $ (1.1) $ (393.6) |
Redeemable Preferred Stock - Se
Redeemable Preferred Stock - Series A Preferred | 9 Months Ended |
Mar. 31, 2020 | |
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. 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 Gene Therapy 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 March 31, 2020 . |
Leases
Leases | 9 Months Ended |
Mar. 31, 2020 | |
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 March 31, 2020 is detailed in the following table: (Dollars in millions) Line item in the consolidated balance sheet Balance at Right-of-use assets: Finance leases Property, plant, and equipment, net $ 100.6 Operating leases Other assets 90.7 Current lease liabilities: Finance leases Current portion of long-term obligations and other short-term borrowings 12.2 Operating leases Other accrued liabilities 15.0 Non-current lease liabilities: Finance leases Long-term obligations, less current portion 124.9 Operating leases Other liabilities 73.5 The components of the net lease costs for the three and nine months ended March 31, 2020 reflected in the Company's unaudited consolidated statement of operations were as follows: (Dollars in millions) Three months ended March 31, 2020 Nine Months ended March 31, 2020 Finance lease costs: Amortization of right-of-use assets $ 2.9 $ 8.6 Interest on lease liabilities 2.7 9.1 Total 5.6 17.7 Operating lease costs 5.3 14.2 Variable lease costs 1.3 5.0 Total lease costs $ 12.2 $ 36.9 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 March 31, 2020 are as follows: Weighted average remaining lease term (years): Finance leases 13.4 Operating leases 8.9 Weighted average discount rate: Finance leases 8.6 % Operating leases 4.5 % Supplemental information concerning the cash-flow impact arising from the Company's leases for the nine months ended March 31, 2020 recorded in the Company's unaudited consolidated statement of cash flows is detailed in the following table (in millions): Nine Months ended March 31, 2020 Cash paid for amounts included in lease liabilities: Financing cash flows used for finance leases $ 44.8 Operating cash flows used for finance leases 9.1 Operating cash flows used for operating leases 9.6 Non-cash transactions: Right-of-use assets obtained in exchange for new finance lease liabilities 11.9 Right-of-use assets obtained in exchange for new operating lease liabilities 53.2 As of March 31, 2020, 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 fiscal 2020 $ 5.9 $ 4.4 $ 10.3 2021 21.6 17.5 39.1 2022 19.3 16.6 35.9 2023 18.0 16.1 34.1 2024 17.0 12.1 29.1 Thereafter 142.4 43.5 185.9 Total minimum lease payments 224.2 110.2 334.4 Less: interest 87.1 21.7 108.8 Total lease liabilities $ 137.1 $ 88.5 $ 225.6 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Mar. 31, 2020 | |
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 | 9 Months Ended |
Mar. 31, 2020 | |
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 and nine months ended March 31, 2020 and 2019: (Dollars in millions) Three Months Ended Nine Months Ended 2020 2019 2020 2019 Net revenue: Softgel and Oral Technologies $ 242.3 $ 254.0 $ 770.8 $ 748.5 Biologics 250.0 133.7 663.8 395.8 Oral and Specialty Delivery 181.4 153.8 457.2 419.1 Clinical Supply Services 88.9 77.8 261.4 236.3 Inter-segment revenue elimination (2.0) (1.8) (6.5) (7.4) Net revenue $ 760.6 $ 617.5 $ 2,146.7 $ 1,792.3 (Dollars in millions) Three Months Ended Nine Months Ended 2020 2019 2020 2019 Segment EBITDA reconciled to net earnings: Softgel and Oral Technologies $ 60.1 $ 56.3 $ 171.0 $ 152.3 Biologics 51.9 35.8 150.7 101.9 Oral and Specialty Delivery 56.2 49.0 117.0 113.9 Clinical Supply Services 24.6 20.3 70.2 61.5 Sub-Total $ 192.8 $ 161.4 $ 508.9 $ 429.6 Reconciling items to net earnings Unallocated costs (1) (63.9) (26.0) (134.6) (95.2) Depreciation and amortization (64.8) (66.4) (187.3) (173.9) Interest expense, net (34.4) (26.4) (105.6) (80.0) Income tax expense (8.8) (10.9) $ (14.9) (14.2) Net earnings $ 20.9 $ 31.7 $ 66.5 $ 66.3 (1) Unallocated costs include restructuring and special items, equity-based compensation, impairment charges, certain other corporate directed costs, and other costs that are not allocated to the segments as follows: Three Months Ended Nine Months Ended (Dollars in millions) 2020 2019 2020 2019 Impairment charges and gain/(loss) on sale of assets $ (0.6) $ 0.1 $ (2.1) $ (2.7) Stock-based compensation (8.6) (6.6) (35.5) (24.1) Restructuring and other special items (a) (8.9) (16.1) (28.6) (35.2) Other income/(expense), net (b) (36.7) 3.2 (37.2) (3.9) Unallocated corporate costs, net (9.1) (6.6) (31.2) (29.3) Total unallocated costs $ (63.9) $ (26.0) $ (134.6) $ (95.2) (a) Restructuring and other special items during the nine months ended March 31, 2020 include transaction and integration costs associated with the Company’s gene and cell therapy acquisitions, the disposal of one of its sites in Australia, and other restructuring initiatives across the Company's network of sites. Restructuring and other special items during the nine months ended March 31, 2019 include transaction and integration costs associated with the acquisitions of Catalent Indiana LLC and Juniper Pharmaceuticals, Inc. (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) March 31, June 30, Assets Softgel and Oral Technologies $ 1,453.7 $ 1,586.5 Biologics 3,500.7 2,825.7 Oral and Specialty Delivery 1,186.4 1,098.7 Clinical Supply Services 455.1 463.2 Corporate and eliminations 483.7 209.9 Total assets $ 7,079.6 $ 6,184.0 |
Supplemental Balance Sheet Info
Supplemental Balance Sheet Information | 9 Months Ended |
Mar. 31, 2020 | |
Balance Sheet Related Disclosures [Abstract] | |
Supplemental Balance Sheet Information | SUPPLEMENTAL BALANCE SHEET INFORMATION Supplemental balance sheet information at March 31, 2020 and June 30, 2019 is detailed in the following tables. Inventories Work-in-process and inventories include raw materials, labor, and overhead. Total inventories consist of the following: (Dollars in millions) March 31, June 30, Raw materials and supplies $ 213.7 $ 161.6 Work-in-process 108.2 115.0 Total inventories, gross 321.9 276.6 Inventory cost adjustment (24.7) (19.4) Inventories $ 297.2 $ 257.2 Prepaid expenses and other Prepaid expenses and other consist of the following: (Dollars in millions) March 31, June 30, Prepaid expenses $ 33.1 $ 18.7 Contract assets 35.6 23.3 Spare parts supplies 23.1 8.1 Prepaid income tax 11.0 10.0 Non-U.S. value-added tax 12.0 16.4 Other current assets 27.0 23.6 Prepaid expenses and other $ 141.8 $ 100.1 Property, plant, and equipment, net Property, plant, and equipment, net consist of the following: (Dollars in millions) March 31, June 30, Land, buildings, and improvements $ 1,174.6 $ 1,049.4 Machinery, equipment, and capitalized software 1,143.5 1,104.9 Furniture and fixtures 19.2 16.9 Construction in progress 426.9 278.9 Property, plant, and equipment, at cost 2,764.2 2,450.1 Accumulated depreciation (994.7) (913.4) Property, plant, and equipment, net $ 1,769.5 $ 1,536.7 Depreciation expense was $41.8 million and $121.0 million for the three and nine months ended March 31, 2020, respectively, and $35.0 million and $104.8 million for the three and nine months ended March 31, 2019, respectively. Depreciation expense includes amortization of assets related to finance 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) March 31, June 30, Accrued employee-related expenses $ 119.2 $ 103.9 Restructuring accrual 3.8 8.2 Accrued interest 12.1 11.7 Contract liability 160.2 155.2 Accrued income tax — 8.5 Other accrued liabilities and expenses 73.8 50.9 Other accrued liabilities $ 369.1 $ 338.4 |
Subsequent Events (Notes)
Subsequent Events (Notes) | 9 Months Ended |
Mar. 31, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | SUBSEQUENT EVENTSIn April 2020, the Company entered into an interest-rate swap agreement with Bank of America N.A. as a hedge against the economic effect of a portion of the variable interest obligation associated with its U.S dollar-denominated term loans under its senior secured credit facilities, so that the interest payable on that portion of the debt becomes fixed at a certain rate, thereby reducing the impact of future interest rate changes on future interest expense. The applicable rate for the U.S. dollar-denominated term loan is LIBOR (subject to a floor of 1.00%) plus 2.25%; however, as a result of entering into the interest-rate swap agreement, the floating portion of the applicable rate on $500.0 million of the term loan is now effectively fixed at 1.26%, for a total fixed rate of 3.51%. |
Basis of Presentation and Sum_2
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Mar. 31, 2020 | |
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 nine months ended March 31, 2020 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 the first quarter of 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, viral vector gene therapy, and cell 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. Contract assets previously presented in trade receivables, net are now presented in prepaid expenses and other, which amounts are further detailed in Note 18, Supplemental Balance Sheet Information . |
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 $0.6 million and $1.8 million for the three and nine months ended March 31, 2020 , respectively, and $0.9 million an d $2.4 million for the three and nine months ended March 31, 2019 , 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 $15.8 million and $44.3 million for the three and nine months ended March 31, 2020, respectively, and $11.8 million and $37.4 million for the three and nine months ended March 31, 2019, 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 March 31, 2020 In March 2020, the FASB issued ASU 2020-04 , Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting , which provides optional guidance to ease the potential burden in accounting for the discontinuation of a reference rate such as LIBOR, formerly known as the London Interbank Offered Rate, because of reference rate reform. The expedients and exceptions provided by the guidance do not apply to contract modifications made and hedging relationships entered into or evaluated after December 31, 2022. The ASU is effective for all entities as of March 12, 2020 through December 31, 2022. The Company is currently evaluating the impact of adopting this guidance on its consolidated financial statements. In December 2019, the FASB issued ASU 2019-12 , Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes , which eliminates certain exceptions related to the incremental approach for intraperiod allocation, deferred tax recognition requirement for changes in equity method investments and foreign subsidiaries, and methodology for calculating income taxes in an interim period. The guidance also simplifies certain aspects of the accounting for franchise taxes, the accounting for step-up in the tax basis of goodwill, and accounting for the change in the enacted change in tax laws or rates. The ASU will be effective for fiscal years beginning after December 15, 2020 and interim periods within those fiscal years. The Company is currently evaluating the impact of adopting this guidance on its consolidated financial statements. 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 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) | 9 Months Ended |
Mar. 31, 2020 | |
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 March 31, 2020 Three Months Ended March 31, 2019 Nine Months Ended March 31, 2020 Nine Months Ended March 31, 2019 United States $ 438.9 $ 318.4 $ 1,215.9 $ 913.9 Europe 258.7 200.8 690.1 609.9 International Other 83.5 108.2 299.8 321.6 Elimination of revenue attributable to multiple locations (20.5) (9.9) (59.1) (53.1) Total $ 760.6 $ 617.5 $ 2,146.7 $ 1,792.3 |
Product and Service[Member] | |
Disaggregation of Revenue [Line Items] | |
Disaggregation of Revenue | The following tables allocate revenue, for the three and nine months ended March 31, 2020 and March 31, 2019, by type of activity and reporting segment (in millions): Three Months Ended March 31, 2020 Softgel & Oral Technologies Biologics Oral & Specialty Delivery Clinical Supply Services Total Manufacturing & commercial product supply $ 217.6 $ 85.2 $ 127.2 $ — $ 430.0 Development services 24.7 164.8 54.2 — 243.7 Clinical supply services — — — 88.9 88.9 Total $ 242.3 $ 250.0 $ 181.4 $ 88.9 $ 762.6 Inter-segment revenue elimination (2.0) Combined net revenue $ 760.6 Three Months Ended March 31, 2019 Softgel & Oral Technologies Biologics Oral & Specialty Delivery Clinical Supply Services Total Manufacturing & commercial product supply $ 232.9 $ 66.8 $ 99.7 $ — $ 399.4 Development services 21.1 66.9 54.1 — 142.1 Clinical supply services — — — 77.8 77.8 Total $ 254.0 $ 133.7 $ 153.8 $ 77.8 $ 619.3 Inter-segment revenue elimination (1.8) Combined net revenue $ 617.5 Nine Months Ended March 31, 2020 Softgel & Oral Technologies Biologics Oral & Specialty Delivery Clinical Supply Services Total Manufacturing & commercial product supply $ 701.5 $ 229.6 $ 294.5 $ — $ 1,225.6 Development services 69.3 434.2 162.7 — 666.2 Clinical supply services — — — 261.4 261.4 Total $ 770.8 $ 663.8 $ 457.2 $ 261.4 $ 2,153.2 Inter-segment revenue elimination (6.5) Combined net revenue $ 2,146.7 Nine Months Ended March 31, 2019 Softgel & Oral Technologies Biologics Oral & Specialty Delivery Clinical Supply Services Total Manufacturing & commercial product supply $ 680.8 $ 168.1 $ 262.4 $ — $ 1,111.3 Development services 67.7 227.7 156.7 — 452.1 Clinical supply services — — — 236.3 236.3 Total $ 748.5 $ 395.8 $ 419.1 $ 236.3 $ 1,799.7 Inter-segment revenue elimination (7.4) Combined net revenue $ 1,792.3 |
Revenue Recognition Contractual
Revenue Recognition Contractual Liabilities (Tables) | 9 Months Ended |
Mar. 31, 2020 | |
Revenue Recognition and Deferred Revenue [Abstract] | |
Contractual Liabilities | Changes in the contract liabilities balance during the nine months ended March 31, 2020 are as follows: (Dollars in millions) Contract liability Balance at June 30, 2019 $ 177.4 Balance at March 31, 2020 $ 180.0 Revenue recognized in the period from: Amounts included in contract liability at the beginning of the period $ 117.2 |
Business Combinations (Table)
Business Combinations (Table) | 3 Months Ended |
Mar. 31, 2020 | |
Business Acquisition [Line Items] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | The preliminary purchase price allocation to assets acquired and liabilities assumed in the transaction is (in millions): Property, plant, and equipment $ 25.5 Identifiable intangible assets 51.0 Other net assets 2.0 Deferred income tax liabilities (13.4) Total identifiable net assets $ 65.1 Goodwill 258.2 Total assets acquired and liabilities assumed $ 323.3 |
Goodwill (Tables)
Goodwill (Tables) | 9 Months Ended |
Mar. 31, 2020 | |
Goodwill Disclosure [Abstract] | |
Goodwill - Rollforward | The following table summarizes the changes between June 30, 2019 and March 31, 2020 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 — 260.6 — — 260.6 Reallocation 108.1 (124.3) 16.2 — — Other (1.4) (6.8) 1.1 — (7.1) Foreign currency translation adjustments (13.0) (1.3) (6.0) (4.8) (25.1) Balance at March 31, 2020 $ 502.9 $ 1,448.2 $ 351.6 $ 146.6 $ 2,449.3 The addition to goodwill in the Biologics reporting segment relates to the Novavax and MaSTherCell transactions. 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) | 9 Months Ended |
Mar. 31, 2020 | |
Intangible Assets Disclosure [Abstract] | |
Other Intangible Assets Subject to Amortization | The details of other intangibles, net as of March 31, 2020 and June 30, 2019 are as follows: (Dollars in millions) Weighted Average Life Gross Carrying Value Accumulated Amortization Net Carrying Value March 31, 2020 Amortized intangibles: Core technology 19 years $ 133.1 $ (80.3) $ 52.8 Customer relationships 14 years 1,016.6 (228.3) 788.3 Product relationships 11 years 268.0 (212.9) 55.1 Other 4 years 14.5 (3.4) 11.1 Total intangible assets $ 1,432.2 $ (524.9) $ 907.3 (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 $ 23.0 $ 91.8 $ 91.2 $ 90.5 $ 89.9 $ 89.0 |
Long-Term Obligations and Oth_2
Long-Term Obligations and Other Short-Term Borrowings (Tables) | 9 Months Ended |
Mar. 31, 2020 | |
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 March 31, 2020 and June 30, 2019: (Dollars in millions) Maturity as of March 31, 2020 March 31, 2020 June 30, 2019 Senior secured credit facilities Term loan facility U.S. dollar-denominated May 2026 $ 930.5 $ 936.2 Term loan facility euro-denominated May 2024 — 346.8 Revolving credit facility May 2024 200.0 — Euro-denominated 4.75% Senior Notes due 2024 December 2024 — 428.3 U.S. dollar-denominated 4.875% Senior Notes due 2026 January 2026 445.2 444.6 U.S. dollar-denominated 5.00% Senior Notes due 2027 July 2027 492.8 492.1 Euro-denominated 2.375% Senior Notes due 2028 March 2028 894.1 — Deferred purchase consideration October 2021 96.7 143.9 Capital lease obligations 2020 to 2044 137.1 167.3 Other obligations 2020 to 2024 2.3 0.1 Total $ 3,198.7 $ 2,959.3 Less: current portion of long-term obligations and other short-term 271.8 76.5 Long-term obligations, less current portion $ 2,926.9 $ 2,882.8 |
Long-Term Obligations and Oth_3
Long-Term Obligations and Other Short-Term Borrowings Fair Value of Financial Instruments (Tables) | 9 Months Ended |
Mar. 31, 2020 | |
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 March 31, 2020 and June 30, 2019 are as follows: March 31, 2020 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 $ — $ — $ 428.3 $ 454.2 U.S. dollar-denominated 4.875% senior notes Level 2 445.2 438.7 444.6 457.0 U.S. dollar-denominated 5.00% senior notes Level 2 492.8 482.7 492.1 509.0 Euro-denominated 2.375% senior notes due Level 2 894.1 789.2 — — Senior secured credit facilities & other Level 2 1,366.6 1,334.7 1,594.3 1,526.0 Total $ 3,198.7 $ 3,045.3 $ 2,959.3 $ 2,946.2 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Mar. 31, 2020 | |
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 and nine months ended March 31, 2020 and 2019, respectively, are as follows (in millions, except share and per share data): Three Months Ended Nine Months Ended 2020 2019 2020 2019 Net earnings $ 20.9 $ 31.7 $ 66.5 $ 66.3 Less: Net earnings attributable to preferred shareholders (9.1) — (27.8) — Net earnings attributable to common shareholders $ 11.8 $ 31.7 $ 38.7 $ 66.3 Weighted average shares outstanding 151,267,795 145,145,310 147,647,548 143,896,635 Weighted average dilutive securities issuable-stock plans 1,787,847 1,612,961 1,843,559 1,696,575 Total weighted average diluted shares outstanding 153,055,642 146,758,271 149,491,107 145,593,210 Earnings per share: Basic $ 0.08 $ 0.22 $ 0.26 $ 0.46 Diluted $ 0.08 $ 0.22 $ 0.26 $ 0.46 |
Other Income and Expense (Table
Other Income and Expense (Tables) | 9 Months Ended |
Mar. 31, 2020 | |
Other Income and Expenses [Abstract] | |
Schedule of Other Nonoperating Income (Expense) | The components of other (income)/expense, net for the three and nine months ended March 31, 2020 and 2019 are as follows: Three Months Ended Nine Months Ended (Dollars in millions) 2020 2019 2020 2019 Other (income)/expense, net Debt refinancing costs (1) $ 16.0 $ — $ 16.1 $ 4.2 Foreign currency (gains) and losses (2) (5.3) (3.2) (1.7) (0.8) Other (3) 26.0 — 22.8 0.5 Total other (income)/expense, net $ 36.7 $ (3.2) $ 37.2 $ 3.9 (1) The expense in the nine months ended March 31, 2019 includes a write-off of $4.2 million of previously capitalized financing charges related to the Company's U.S. dollar-denominated term loan under its senior secured credit facility. The expense in the three months ended March 31, 2020 includes (a) a write-off of $6.0 million of previously capitalized financing charges related to the Company's recently repaid euro-denominated term loan under its senior secured credit facilities and the Company's recently redeemed euro-denominated senior notes and (b) a $10.0 million premium on early redemption of the euro notes. (2) Foreign currency remeasurement (gains) and losses include both cash and non-cash transactions. (3) Included within Other for the three and nine months ended March 31, 2020 are unrealized losses of $26.3 million and $24.9 million, respectively, 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) | 9 Months Ended |
Mar. 31, 2020 | |
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 and nine months ended March 31, 2020 and 2019. Three Months Ended Nine Months Ended (Dollars in millions) 2020 2019 2020 2019 Unrealized foreign exchange gain/(loss) within other comprehensive income $ 3.7 $ 5.9 $ 17.5 $ 17.3 Unrealized foreign exchange gain/(loss) within statement of operations $ 1.9 $ 2.9 $ 7.7 $ 9.8 |
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 24.9 Balance at March 31, 2020 $ 51.7 |
Employee Retirement Benefit P_2
Employee Retirement Benefit Plans (Tables) | 9 Months Ended |
Mar. 31, 2020 | |
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 Nine Months Ended (Dollars in millions) 2020 2019 2020 2019 Components of net periodic benefit cost: Selling, general, and administrative expenses: Service cost $ 0.9 $ 0.9 $ 2.3 $ 2.7 Other (income)/expense, net: Interest cost 0.7 1.9 4.2 5.7 Expected return on plan assets (2.5) (2.7) (7.8) (7.9) Amortization (1) 2.6 0.6 4.1 1.8 Net amount recognized $ 1.7 $ 0.7 $ 2.8 $ 2.3 (1) Amount represents the amortization of unrecognized actuarial gains/(losses). |
Equity and Accumulated Other _2
Equity and Accumulated Other Comprehensive Income (Loss) (Tables) | 9 Months Ended |
Mar. 31, 2020 | |
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 and nine months ended March 31, 2020 and 2019 are presented below. Three Months Ended Nine Months Ended (Dollars in millions) 2020 2019 2020 2019 Foreign currency translation adjustments: Net investment hedge $ 3.7 $ 5.9 $ 17.5 $ 17.3 Long-term intercompany loans (26.9) 17.1 (15.3) 3.0 Translation adjustments (20.5) 0.9 (42.5) (20.9) Total foreign currency translation adjustment, pretax (43.7) 23.9 (40.3) (0.6) Tax expense/(benefit) (0.6) 2.4 2.5 4.3 Total foreign currency translation adjustment, net of tax $ (43.1) $ 21.5 $ (42.8) $ (4.9) Net change in minimum pension liability Net loss recognized during the period $ 1.2 $ 0.6 $ 4.1 $ 1.9 Total pension liability, pretax 1.2 0.6 4.1 1.9 Tax expense/(benefit) 1.1 0.2 1.0 0.5 Net change in minimum pension liability, net of tax $ 0.1 $ 0.4 $ 3.1 $ 1.4 |
Schedule of Accumulated Other Comprehensive Income (Loss) | For the three months ended March 31, 2020, 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 December 31, 2019 $ (303.4) $ (46.1) $ (1.1) $ (350.6) Other comprehensive income before (43.1) — — (43.1) Amounts reclassified from accumulated other — 0.1 — 0.1 Net current period other comprehensive income (43.1) 0.1 — (43.0) Balance at March 31, 2020 $ (346.5) $ (46.0) $ (1.1) $ (393.6) For the nine months ended March 31, 2020, 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 before reclassifications (42.8) — — (42.8) Amounts reclassified from accumulated other comprehensive income — 3.1 — 3.1 Net current period other comprehensive income (42.8) 3.1 — (39.7) Balance at March 31, 2020 $ (346.5) $ (46.0) $ (1.1) $ (393.6) |
Equity (Tables)
Equity (Tables) | 9 Months Ended |
Mar. 31, 2020 | |
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) | 9 Months Ended |
Mar. 31, 2020 | |
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 March 31, 2020 is detailed in the following table: (Dollars in millions) Line item in the consolidated balance sheet Balance at Right-of-use assets: Finance leases Property, plant, and equipment, net $ 100.6 Operating leases Other assets 90.7 Current lease liabilities: Finance leases Current portion of long-term obligations and other short-term borrowings 12.2 Operating leases Other accrued liabilities 15.0 Non-current lease liabilities: Finance leases Long-term obligations, less current portion 124.9 Operating leases Other liabilities 73.5 |
Lease, Cost [Table Text Block] | The components of the net lease costs for the three and nine months ended March 31, 2020 reflected in the Company's unaudited consolidated statement of operations were as follows: (Dollars in millions) Three months ended March 31, 2020 Nine Months ended March 31, 2020 Finance lease costs: Amortization of right-of-use assets $ 2.9 $ 8.6 Interest on lease liabilities 2.7 9.1 Total 5.6 17.7 Operating lease costs 5.3 14.2 Variable lease costs 1.3 5.0 Total lease costs $ 12.2 $ 36.9 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 March 31, 2020 are as follows: Weighted average remaining lease term (years): Finance leases 13.4 Operating leases 8.9 Weighted average discount rate: Finance leases 8.6 % Operating leases 4.5 % |
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 nine months ended March 31, 2020 recorded in the Company's unaudited consolidated statement of cash flows is detailed in the following table (in millions): Nine Months ended March 31, 2020 Cash paid for amounts included in lease liabilities: Financing cash flows used for finance leases $ 44.8 Operating cash flows used for finance leases 9.1 Operating cash flows used for operating leases 9.6 Non-cash transactions: Right-of-use assets obtained in exchange for new finance lease liabilities 11.9 Right-of-use assets obtained in exchange for new operating lease liabilities 53.2 |
Schedule Of Maturities Of Operating And Finance Lease Liabilities [Table Text Block] | As of March 31, 2020, 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 fiscal 2020 $ 5.9 $ 4.4 $ 10.3 2021 21.6 17.5 39.1 2022 19.3 16.6 35.9 2023 18.0 16.1 34.1 2024 17.0 12.1 29.1 Thereafter 142.4 43.5 185.9 Total minimum lease payments 224.2 110.2 334.4 Less: interest 87.1 21.7 108.8 Total lease liabilities $ 137.1 $ 88.5 $ 225.6 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Mar. 31, 2020 | |
Segment Reporting [Abstract] | |
Net Revenue by Segment | (Dollars in millions) Three Months Ended Nine Months Ended 2020 2019 2020 2019 Net revenue: Softgel and Oral Technologies $ 242.3 $ 254.0 $ 770.8 $ 748.5 Biologics 250.0 133.7 663.8 395.8 Oral and Specialty Delivery 181.4 153.8 457.2 419.1 Clinical Supply Services 88.9 77.8 261.4 236.3 Inter-segment revenue elimination (2.0) (1.8) (6.5) (7.4) Net revenue $ 760.6 $ 617.5 $ 2,146.7 $ 1,792.3 |
Reconciliation of Earnings/(Loss) from Continuing Operations to EBITDA | (Dollars in millions) Three Months Ended Nine Months Ended 2020 2019 2020 2019 Segment EBITDA reconciled to net earnings: Softgel and Oral Technologies $ 60.1 $ 56.3 $ 171.0 $ 152.3 Biologics 51.9 35.8 150.7 101.9 Oral and Specialty Delivery 56.2 49.0 117.0 113.9 Clinical Supply Services 24.6 20.3 70.2 61.5 Sub-Total $ 192.8 $ 161.4 $ 508.9 $ 429.6 Reconciling items to net earnings Unallocated costs (1) (63.9) (26.0) (134.6) (95.2) Depreciation and amortization (64.8) (66.4) (187.3) (173.9) Interest expense, net (34.4) (26.4) (105.6) (80.0) Income tax expense (8.8) (10.9) $ (14.9) (14.2) Net earnings $ 20.9 $ 31.7 $ 66.5 $ 66.3 (1) Unallocated costs include restructuring and special items, equity-based compensation, impairment charges, certain other corporate directed costs, and other costs that are not allocated to the segments as follows: Three Months Ended Nine Months Ended (Dollars in millions) 2020 2019 2020 2019 Impairment charges and gain/(loss) on sale of assets $ (0.6) $ 0.1 $ (2.1) $ (2.7) Stock-based compensation (8.6) (6.6) (35.5) (24.1) Restructuring and other special items (a) (8.9) (16.1) (28.6) (35.2) Other income/(expense), net (b) (36.7) 3.2 (37.2) (3.9) Unallocated corporate costs, net (9.1) (6.6) (31.2) (29.3) Total unallocated costs $ (63.9) $ (26.0) $ (134.6) $ (95.2) (a) Restructuring and other special items during the nine months ended March 31, 2020 include transaction and integration costs associated with the Company’s gene and cell therapy acquisitions, the disposal of one of its sites in Australia, and other restructuring initiatives across the Company's network of sites. Restructuring and other special items during the nine months ended March 31, 2019 include transaction and integration costs associated with the acquisitions of Catalent Indiana LLC and Juniper Pharmaceuticals, Inc. (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) March 31, June 30, Assets Softgel and Oral Technologies $ 1,453.7 $ 1,586.5 Biologics 3,500.7 2,825.7 Oral and Specialty Delivery 1,186.4 1,098.7 Clinical Supply Services 455.1 463.2 Corporate and eliminations 483.7 209.9 Total assets $ 7,079.6 $ 6,184.0 |
Supplemental Balance Sheet In_2
Supplemental Balance Sheet Information (Tables) | 9 Months Ended |
Mar. 31, 2020 | |
Balance Sheet Related Disclosures [Abstract] | |
Inventory | Inventories Work-in-process and inventories include raw materials, labor, and overhead. Total inventories consist of the following: (Dollars in millions) March 31, June 30, Raw materials and supplies $ 213.7 $ 161.6 Work-in-process 108.2 115.0 Total inventories, gross 321.9 276.6 Inventory cost adjustment (24.7) (19.4) Inventories $ 297.2 $ 257.2 |
Prepaid and Other Assets | Prepaid expenses and other Prepaid expenses and other consist of the following: (Dollars in millions) March 31, June 30, Prepaid expenses $ 33.1 $ 18.7 Contract assets 35.6 23.3 Spare parts supplies 23.1 8.1 Prepaid income tax 11.0 10.0 Non-U.S. value-added tax 12.0 16.4 Other current assets 27.0 23.6 Prepaid expenses and other $ 141.8 $ 100.1 |
Property and Equipment | Property, plant, and equipment, net Property, plant, and equipment, net consist of the following: (Dollars in millions) March 31, June 30, Land, buildings, and improvements $ 1,174.6 $ 1,049.4 Machinery, equipment, and capitalized software 1,143.5 1,104.9 Furniture and fixtures 19.2 16.9 Construction in progress 426.9 278.9 Property, plant, and equipment, at cost 2,764.2 2,450.1 Accumulated depreciation (994.7) (913.4) Property, plant, and equipment, net $ 1,769.5 $ 1,536.7 |
Other Accrued Liabilities | Other accrued liabilities Other accrued liabilities consist of the following: (Dollars in millions) March 31, June 30, Accrued employee-related expenses $ 119.2 $ 103.9 Restructuring accrual 3.8 8.2 Accrued interest 12.1 11.7 Contract liability 160.2 155.2 Accrued income tax — 8.5 Other accrued liabilities and expenses 73.8 50.9 Other accrued liabilities $ 369.1 $ 338.4 |
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 | 9 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | |
Selling, General and Administrative Expenses | ||||
Research and Development Expense [Line Items] | ||||
Research and Development Expense | $ 0.6 | $ 0.9 | $ 1.8 | $ 2.4 |
Cost of Sales | ||||
Research and Development Expense [Line Items] | ||||
Research and Development Expense | $ 15.8 | $ 11.8 | $ 44.3 | $ 37.4 |
Basis of Presentation and Sum_4
Basis of Presentation and Summary of Significant Accounting Policies Recent Financial Accounting Standards (Details) $ in Millions | 9 Months Ended |
Mar. 31, 2020USD ($) | |
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 | 9 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | |
Disaggregation of Revenue [Line Items] | ||||
Inter-segment revenue elimination | $ (2) | $ (1.8) | $ (6.5) | $ (7.4) |
Net revenue | 760.6 | 617.5 | 2,146.7 | 1,792.3 |
Softgel and Oral Technologies | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenue | 242.3 | 254 | 770.8 | 748.5 |
Softgel and Oral Technologies | Manufacturing & Commercial Product Supply | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenue | 217.6 | 232.9 | 701.5 | 680.8 |
Softgel and Oral Technologies | Development Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenue | 24.7 | 21.1 | 69.3 | 67.7 |
Softgel and Oral Technologies | Clinical Supply Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenue | 0 | 0 | 0 | 0 |
Biologics | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenue | 250 | 133.7 | 663.8 | 395.8 |
Biologics | Manufacturing & Commercial Product Supply | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenue | 85.2 | 66.8 | 229.6 | 168.1 |
Biologics | Development Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenue | 164.8 | 66.9 | 434.2 | 227.7 |
Biologics | Clinical Supply Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenue | 0 | 0 | 0 | 0 |
Oral and Specialty Drug Delivery | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenue | 181.4 | 153.8 | 457.2 | 419.1 |
Oral and Specialty Drug Delivery | Manufacturing & Commercial Product Supply | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenue | 127.2 | 99.7 | 294.5 | 262.4 |
Oral and Specialty Drug Delivery | Development Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenue | 54.2 | 54.1 | 162.7 | 156.7 |
Oral and Specialty Drug Delivery | Clinical Supply Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenue | 0 | 0 | 0 | 0 |
Clinical Supply Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenue | 88.9 | 77.8 | 261.4 | 236.3 |
Clinical Supply Services | Manufacturing & Commercial Product Supply | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenue | 0 | 0 | 0 | 0 |
Clinical Supply Services | Development Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenue | 0 | 0 | 0 | 0 |
Clinical Supply Services | Clinical Supply Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenue | 88.9 | 77.8 | 261.4 | 236.3 |
Total Catalent before inter-segment revenue elimination | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenue | 762.6 | 619.3 | 2,153.2 | 1,799.7 |
Total Catalent before inter-segment revenue elimination | Manufacturing & Commercial Product Supply | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenue | 430 | 399.4 | 1,225.6 | 1,111.3 |
Total Catalent before inter-segment revenue elimination | Development Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenue | 243.7 | 142.1 | 666.2 | 452.1 |
Total Catalent before inter-segment revenue elimination | Clinical Supply Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenue | $ 88.9 | $ 77.8 | $ 261.4 | $ 236.3 |
Revenue Recognition Disaggreg_2
Revenue Recognition Disaggregation of Revenue by Geography (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | |
Disaggregation of Revenue [Line Items] | ||||
Elimination of revenue attributable to multiple locations | $ (20.5) | $ (9.9) | $ (59.1) | $ (53.1) |
Net revenue | 760.6 | 617.5 | 2,146.7 | 1,792.3 |
United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenue | 438.9 | 318.4 | 1,215.9 | 913.9 |
Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenue | 258.7 | 200.8 | 690.1 | 609.9 |
International Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenue | $ 83.5 | $ 108.2 | $ 299.8 | $ 321.6 |
Revenue Recognition Contractu_2
Revenue Recognition Contractual Liabilities (Details) - USD ($) $ in Millions | 9 Months Ended | |
Mar. 31, 2020 | Jun. 30, 2019 | |
Revenue Recognition and Deferred Revenue [Abstract] | ||
Contract with Customer, Liability | $ 180 | $ 177.4 |
Contract with Customer, Liability, Revenue Recognized | $ 117.2 |
Business Combinations Acquisiti
Business Combinations Acquisition Purchase Agreement (Details) - USD ($) $ in Millions | Feb. 10, 2020 | Jan. 01, 2020 | Jul. 31, 2019 | May 17, 2019 | Mar. 31, 2020 |
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 Transferred | $ 55.3 | ||||
Business Combination,Consideration Transferred, Net of Transitional Service Agreement | $ 52.2 | ||||
MaSTherCell [Member] | |||||
Business Acquisition [Line Items] | |||||
Business Combination, Consideration Transferred | $ 323.3 | ||||
Net Revenue | $ 5.1 | ||||
Pre-Tax Earnings | 0.5 | ||||
Business Acquisition, Transaction Costs | $ 3.1 |
Business Combinations Net Asset
Business Combinations Net Assets Acquired (Details) - USD ($) $ in Millions | Feb. 10, 2020 | Jan. 01, 2020 | 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 Acquisition, Goodwill, Expected Tax Deductible Amount | 2.4 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Inventory | $ 0.3 | |||
Paragon [Member] | ||||
Net Assets Acquired from Business Combinations | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Cash and Equivalents | $ 7.6 | |||
Anagni [Member] | ||||
Net Assets Acquired from Business Combinations | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment | $ 34.2 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Inventory | 7 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Prepaid Expense and Other Assets | $ 12.4 | |||
MaSTherCell [Member] | ||||
Net Assets Acquired from Business Combinations | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment | $ 25.5 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 51 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill | 2 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Liabilities | 13.4 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net | 65.1 | |||
Business Acquisition, Goodwill, Expected Tax Deductible Amount | 258.2 | |||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net | 323.3 | |||
MaSTherCell [Member] | Customer-Related Intangible Assets [Member] | ||||
Net Assets Acquired from Business Combinations | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $ 46.3 |
Goodwill - Rollforward (Detail)
Goodwill - Rollforward (Detail) $ in Millions | 9 Months Ended |
Mar. 31, 2020USD ($) | |
Goodwill [Roll Forward] | |
Beginning balance | $ 2,220.9 |
Goodwill, Acquired During Period | 260.6 |
Goodwill, Transfers | 0 |
Goodwill, Other Increase (Decrease) | (7.1) |
Foreign currency translation adjustments | (25.1) |
Ending balance | 2,449.3 |
Softgel and Oral Technologies | |
Goodwill [Roll Forward] | |
Beginning balance | 409.2 |
Goodwill, Acquired During Period | 0 |
Goodwill, Transfers | 108.1 |
Goodwill, Other Increase (Decrease) | (1.4) |
Foreign currency translation adjustments | (13) |
Ending balance | 502.9 |
Biologics | |
Goodwill [Roll Forward] | |
Beginning balance | 1,320 |
Goodwill, Acquired During Period | 260.6 |
Goodwill, Transfers | (124.3) |
Goodwill, Other Increase (Decrease) | (6.8) |
Foreign currency translation adjustments | (1.3) |
Ending balance | 1,448.2 |
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 | (6) |
Ending balance | 351.6 |
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 | (4.8) |
Ending balance | $ 146.6 |
Definite Lived Long-Lived Ass_3
Definite Lived Long-Lived Assets - Other Intangible Assets Subject to Amortization (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Mar. 31, 2020 | Jun. 30, 2019 | |
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Value | $ 1,432.2 | $ 1,432.2 | $ 1,434.1 |
Accumulated Amortization | (524.9) | (524.9) | (503.3) |
Net Carrying Value | 907.3 | $ 907.3 | $ 930.8 |
Core technology [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Weighted Average Life | 19 years | 18 years | |
Gross Carrying Value | 133.1 | $ 133.1 | $ 168.2 |
Accumulated Amortization | (80.3) | (80.3) | (105.6) |
Net Carrying Value | 52.8 | $ 52.8 | $ 62.6 |
Customer Relationships [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Weighted Average Life | 14 years | 14 years | |
Gross Carrying Value | 1,016.6 | $ 1,016.6 | $ 981.1 |
Accumulated Amortization | (228.3) | (228.3) | (182.5) |
Net Carrying Value | 788.3 | $ 788.3 | $ 798.6 |
Product Relationships [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Weighted Average Life | 11 years | 11 years | |
Gross Carrying Value | 268 | $ 268 | $ 275.5 |
Accumulated Amortization | (212.9) | (212.9) | (213.9) |
Net Carrying Value | $ 55.1 | 55.1 | $ 61.6 |
Other Intangible Assets [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Weighted Average Life | 4 years | 4 years | |
Gross Carrying Value | $ 14.5 | 14.5 | $ 9.3 |
Accumulated Amortization | (3.4) | (3.4) | (1.3) |
Net Carrying Value | $ 11.1 | $ 11.1 | $ 8 |
Definite Lived Long-Lived Ass_4
Definite Lived Long-Lived Assets - Amortization Expense (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | |
Intangible Assets Disclosure [Abstract] | ||||
Amortization expense | $ 23 | $ 31.4 | $ 66.3 | $ 69.1 |
Remainder Fiscal 2020 | 23 | 23 | ||
2021 | 91.8 | 91.8 | ||
2022 | 91.2 | 91.2 | ||
2023 | 90.5 | 90.5 | ||
2024 | 89.9 | 89.9 | ||
2025 | $ 89 | $ 89 |
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 | 3 Months Ended | |||
Mar. 31, 2020USD ($) | Mar. 31, 2020EUR (€) | Feb. 28, 2020USD ($) | Jun. 30, 2019USD ($) | |
Schedule Of Debt [Line Items] | ||||
Total long-term debt | $ 3,198.7 | $ 2,959.3 | ||
Debt, Current | 271.8 | 76.5 | ||
Long-term obligations, less current portion | 2,926.9 | 2,882.8 | ||
Term loan facility U.S. dollar-denominated | ||||
Schedule Of Debt [Line Items] | ||||
Total long-term debt | 930.5 | 936.2 | ||
Term loan facility euro-denominated | ||||
Schedule Of Debt [Line Items] | ||||
Total long-term debt | 0 | 346.8 | ||
Revolving Credit Facility - Two | ||||
Schedule Of Debt [Line Items] | ||||
Total long-term debt | $ 200 | $ 100 | 0 | |
Debt Instrument, Interest Rate, Stated Percentage | 2.93% | 2.93% | ||
Interest Costs Incurred | $ 0.4 | |||
Four Point Seven Five Percent Senior Euro Denominated Notes [Member] | ||||
Schedule Of Debt [Line Items] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 4.75% | 4.75% | ||
2.375% Senior Euro Denominated Notes [Member] | ||||
Schedule Of Debt [Line Items] | ||||
Total long-term debt | € | € 825 | |||
Debt Instrument, Interest Rate, Stated Percentage | 2.375% | 2.375% | ||
Deferred purchase consideration | ||||
Schedule Of Debt [Line Items] | ||||
Total long-term debt | $ 96.7 | 143.9 | ||
Capital lease obligations | ||||
Schedule Of Debt [Line Items] | ||||
Total long-term debt | 137.1 | 167.3 | ||
Other obligations | ||||
Schedule Of Debt [Line Items] | ||||
Total long-term debt | 2.3 | 0.1 | ||
Carrying Value [Member] | ||||
Schedule Of Debt [Line Items] | ||||
Debt Instrument, Fair Value Disclosure | 3,198.7 | 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 | 0 | 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 | 445.2 | 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 | 492.8 | 492.1 | ||
Fair Value, Inputs, Level 2 [Member] | Carrying Value [Member] | 2.375% Senior Euro Denominated Notes [Member] | ||||
Schedule Of Debt [Line Items] | ||||
Debt Instrument, Fair Value Disclosure | $ 894.1 | $ 0 |
Long-Term Obligations and Oth_5
Long-Term Obligations and Other Short-Term Borrowings Long-Term Obligations and Other Short-Term Borrowings (Details) € in Millions, $ in Millions | Oct. 23, 2017USD ($) | Mar. 31, 2020USD ($) | Mar. 31, 2020EUR (€) | Feb. 28, 2020USD ($) | Jun. 30, 2019USD ($) |
Debt Instrument [Line Items] | |||||
Total long-term debt | $ 3,198.7 | $ 2,959.3 | |||
Payments to Acquire Businesses, Gross | $ 950 | ||||
Payable Installments for Business Acquisition | 50 | ||||
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 | ||||
2.375% Senior Euro Denominated Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Total long-term debt | € | € 825 | ||||
Revolving Credit Facility - Two | |||||
Debt Instrument [Line Items] | |||||
Total long-term debt | $ 200 | $ 100 | $ 0 | ||
Accrued Liabilities [Member] | |||||
Debt Instrument [Line Items] | |||||
Payments to Acquire Businesses, Gross | $ 200 |
Long-Term Obligations and Oth_6
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 | Mar. 31, 2020 | Jun. 30, 2019 |
Estimate of Fair Value Measurement [Member] | ||
Fair Value Measurements Of Financial Instruments [Line Items] | ||
Debt Instrument, Fair Value Disclosure | $ 3,045.3 | $ 2,946.2 |
Carrying Value [Member] | ||
Fair Value Measurements Of Financial Instruments [Line Items] | ||
Debt Instrument, Fair Value Disclosure | 3,198.7 | 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 | 0 | 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 | 0 | 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 | 482.7 | 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 | 492.8 | 492.1 |
2.375% 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 | 789.2 | 0 |
2.375% 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 | 894.1 | 0 |
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 | 438.7 | 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 | 445.2 | 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 | 1,334.7 | 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 | $ 1,366.6 | $ 1,594.3 |
Earnings Per Share Earnings Per
Earnings Per Share Earnings Per Share - Additional Details (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |||||
Common Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 | $ 0.01 | ||
If-converted Shares, Common Stock | 13.1 | ||||
Potential common shares issuable, Restricted & Employee held | $ 0.5 | $ 1.1 | $ 0.6 | $ 1 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | |
Earnings Per Share [Abstract] | ||||
Net earnings/(loss) | $ 20.9 | $ 31.7 | $ 66.5 | $ 66.3 |
Participating Securities, Distributed and Undistributed Earnings (Loss), Basic | (9.1) | 0 | (27.8) | 0 |
Net Income (Loss) Available to Common Stockholders, Basic | $ 11.8 | $ 31.7 | $ 38.7 | $ 66.3 |
Weighted average shares outstanding | 151,267,795 | 145,145,310 | 147,647,548 | 143,896,635 |
Dilutive securities issuable-stock plans | 1,787,847 | 1,612,961 | 1,843,559 | 1,696,575 |
Total weighted average diluted shares outstanding | 153,055,642 | 146,758,271 | 149,491,107 | 145,593,210 |
Earnings Per Share, Basic | $ 0.08 | $ 0.22 | $ 0.26 | $ 0.46 |
Earnings Per Share, Diluted | $ 0.08 | $ 0.22 | $ 0.26 | $ 0.46 |
Other Income and Expense (Detai
Other Income and Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | |||||
Other Income and Expenses [Abstract] | ||||||||
Debt refinancing costs | 16.0 | [1] | — | 16.1 | 4.2 | [1] | ||
Foreign Currency (gains) and losses | [2] | $ (5.3) | $ (3.2) | $ (1.7) | $ (0.8) | |||
Other | 26 | [3] | 0 | [3] | 22.8 | 0.5 | ||
Other (income)/expense, net | 36.7 | $ (3.2) | 37.2 | 3.9 | ||||
Write off of Deferred Debt Issuance Cost | 6 | 4.2 | ||||||
Early Repayment of Senior Debt | 10 | |||||||
Derivative, Gain (Loss) on Derivative, Net | $ (26.3) | $ (24.9) | $ 0 | |||||
[1] | The expense in the nine months ended March 31, 2019 includes a write-off of $4.2 million of previously capitalized financing charges related to the Company's U.S. dollar-denominated term loan under its senior secured credit facility. The expense in the three months ended March 31, 2020 includes (a) a write-off of $6.0 million of previously capitalized financing charges related to the Company's recently repaid euro-denominated term loan under its senior secured credit facilities and the Company's recently redeemed euro-denominated senior notes and (b) a $10.0 million premium on early redemption of the euro notes. | |||||||
[2] | Foreign currency remeasurement (gains) and losses include both cash and non-cash transactions. | |||||||
[3] | Included within Other for the three and nine months ended March 31, 2020 are unrealized losses of $26.3 million and $24.9 million, respectively, related to the fair value of the derivative liability associated with the Series A Preferred Stock |
Restructuring and Other Costs (
Restructuring and Other Costs (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | |
Restructuring and Related Activities [Abstract] | ||||
Restructuring and other | $ 1.3 | $ 3.1 | $ 2.5 | $ 12.9 |
Derivative Instruments and He_3
Derivative Instruments and Hedging Activities - Additional Information (Detail) - USD ($) $ in Millions | May 17, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | Jun. 30, 2019 |
Derivative [Line Items] | ||||||
Total long-term debt | $ 3,198.7 | $ 3,198.7 | $ 2,959.3 | |||
Unrealized foreign exchange gain/(loss) within other comprehensive income | 3.7 | $ 5.9 | 17.5 | $ 17.3 | ||
Unrealized foreign exchange gain/(loss) within statement of operations | 1.9 | $ 2.9 | 7.7 | 9.8 | ||
Net accumulated gain related to investment hedges | 77.3 | |||||
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 | (26.3) | (24.9) | $ 0 | |||
Embedded Derivative, Fair Value of Embedded Derivative Liability | 51.7 | 51.7 | ||||
Euro Denominated Debt Outstanding [Member] | ||||||
Derivative [Line Items] | ||||||
Total long-term debt | $ 894.1 | $ 894.1 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | |||||
Unrecognized Tax Benefits, Including Income Tax Penalties and Interest Accrued | $ 4.7 | $ 4.7 | $ 5.2 | ||
Unrecognized tax benefits that impact the effective income tax rate | 3.6 | 3.6 | $ 3.8 | ||
Income tax expense(benefit) | 8.8 | $ 10.9 | 14.9 | $ 14.2 | |
Earnings from continuing operations, before income taxes | $ 29.7 | $ 42.6 | $ 81.4 | $ 80.5 |
Employee Retirement Benefit P_3
Employee Retirement Benefit Plans - Components of Company's Net Periodic Benefit Costs (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | Jun. 30, 2019 | ||
Components of net periodic benefit cost: | ||||||
Service cost | $ 0.9 | $ 0.9 | $ 2.3 | $ 2.7 | ||
Interest cost | 0.7 | 1.9 | 4.2 | 5.7 | ||
Expected return on plan assets | (2.5) | (2.7) | (7.8) | (7.9) | ||
Amortization | [1] | 2.6 | 0.6 | 4.1 | 1.8 | |
Net amount recognized | 1.7 | 0.7 | 2.8 | 2.3 | ||
Estimated discounted value of future employer contributions | 38.7 | 38.7 | $ 38.8 | |||
Estimated annual cash contribution | $ 1.7 | $ 1.7 | $ 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 | Feb. 06, 2020 | Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | Jun. 30, 2019 | May 17, 2019 |
Equity [Abstract] | |||||||
Common Stock, Shares Authorized | 1,000,000,000 | 1,000,000,000 | 1,000,000,000 | ||||
Common Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 | $ 0.01 | ||||
Preferred Stock, Shares Authorized | 100,000,000 | 100,000,000 | 100,000,000 | ||||
Preferred Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 | $ 0.01 | ||||
Equity offering, sale of common stock | 8,400,000 | ||||||
Shares Issued, Price Per Share | $ 58.58 | ||||||
Equity offering, sale of common stock, net | $ 494.2 | $ 494.2 | $ (0.2) | $ 494.2 | $ 445.3 | ||
Proceeds from Issuance of Common Stock used to Repay Debt | $ 100 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Number of Shares | 500,000 | 500,000 | |||||
Preferred Stock, Shares Issued | 650,000 | 650,000 | 650,000 | 650,000 | |||
Stock Repurchase Program, Authorized Amount | $ 100 | $ 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 | 9 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | |
Foreign currency translation adjustments: | ||||
Net investment hedge | $ 3.7 | $ 5.9 | $ 17.5 | $ 17.3 |
Long-term intercompany loans | (26.9) | 17.1 | (15.3) | 3 |
Translation adjustments | (20.5) | 0.9 | (42.5) | (20.9) |
Total foreign currency translation adjustment, pretax | (43.7) | 23.9 | (40.3) | (0.6) |
Tax expense/(benefit) | (0.6) | 2.4 | 2.5 | 4.3 |
Total foreign currency translation adjustment, net of tax | (43.1) | 21.5 | (42.8) | (4.9) |
Net change in minimum pension liability | ||||
Net gain/(loss) recognized during the period | (1.2) | (0.6) | (4.1) | (1.9) |
Total pension liability, pretax | 1.2 | 0.6 | 4.1 | 1.9 |
Tax expense/(benefit) | 1.1 | 0.2 | 1 | 0.5 |
Net change in minimum pension liability, net of tax | $ 0.1 | $ 0.4 | $ 3.1 | $ 1.4 |
Equity and Accumulated Other _5
Equity and Accumulated Other Comprehensive Income (Loss) - Rollforward (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Beginning Balance | $ (350.6) | $ (353.9) | ||
Other comprehensive income/(loss) before reclassifications | (43.1) | (42.8) | ||
Amounts reclassified from accumulated other comprehensive income/(loss) | 0.1 | 3.1 | ||
Total foreign currency translation adjustment, net of tax | (43.1) | $ 21.5 | (42.8) | $ (4.9) |
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, after Tax | 0.1 | 0.4 | 3.1 | 1.4 |
Other comprehensive income/(loss), net of tax | (43) | $ 21.9 | (39.7) | $ (3.5) |
Ending Balance | (393.6) | (393.6) | ||
Accumulated Translation Adjustment [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Beginning Balance | (303.4) | (303.7) | ||
Other comprehensive income/(loss) before reclassifications | (43.1) | (42.8) | ||
Amounts reclassified from accumulated other comprehensive income/(loss) | 0 | 0 | ||
Total foreign currency translation adjustment, net of tax | (43.1) | (42.8) | ||
Ending Balance | (346.5) | (346.5) | ||
Accumulated Defined Benefit Plans Adjustment [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Beginning Balance | (46.1) | (49.1) | ||
Other comprehensive income/(loss) before reclassifications | 0 | 0 | ||
Amounts reclassified from accumulated other comprehensive income/(loss) | 0.1 | 3.1 | ||
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, after Tax | (0.1) | (3.1) | ||
Ending Balance | (46) | (46) | ||
Available-for-sale Securities [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Beginning Balance | (1.1) | (1.1) | ||
Other comprehensive income/(loss) before reclassifications | 0 | 0 | ||
Amounts reclassified from accumulated other comprehensive income/(loss) | 0 | 0 | ||
Available for sale investments | 0 | 0 | ||
Ending Balance | $ (1.1) | $ (1.1) |
Equity (Details)
Equity (Details) - USD ($) | May 17, 2019 | Mar. 31, 2020 | Jun. 30, 2019 |
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 | 650,000 |
Preferred Stock, Value, Issued | $ 1,000 | ||
Preferred Stock, Issuance Value | 650,000,000 | ||
Payments of Stock Issuance Costs | 3,700,000 | ||
Preferred stock issuance Value, Net | 646,300,000 | ||
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] | |||
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 | Mar. 31, 2020USD ($) |
Assets and Liabilities, Lessee [Abstract] | |
Finance Lease, Right-of-Use Asset | $ 100.6 |
Operating Lease, Right-of-Use Asset | 90.7 |
Finance Lease, Liability, Current | 12.2 |
Operating Lease, Liability, Current | 15 |
Finance Lease, Liability, Noncurrent | 124.9 |
Operating Lease, Liability, Noncurrent | $ 73.5 |
Leases - Cost (Details)
Leases - Cost (Details) $ in Millions | 3 Months Ended | 9 Months Ended |
Mar. 31, 2020USD ($) | Mar. 31, 2020USD ($) | |
Lease, Cost [Abstract] | ||
Finance Lease, Right-of-Use Asset, Amortization | $ 2.9 | $ 8.6 |
Finance Lease, Interest Expense | 2.7 | 9.1 |
Finance Lease Expense | 5.6 | 17.7 |
Operating Lease, Expense | 5.3 | 14.2 |
Variable Lease, Cost | 1.3 | 5 |
Lease, Cost | $ 12.2 | $ 36.9 |
Finance Lease, Weighted Average Remaining Lease Term | 13 years 4 months 24 days | 13 years 4 months 24 days |
Operating Lease, Weighted Average Remaining Lease Term | 8 years 10 months 24 days | 8 years 10 months 24 days |
Finance Lease, Weighted Average Discount Rate, Percent | 8.60% | 8.60% |
Operating Lease, Weighted Average Discount Rate, Percent | 4.50% | 4.50% |
Leases - Schedule of Supplement
Leases - Schedule of Supplemental Cash Flow Information (Details) $ in Millions | 9 Months Ended |
Mar. 31, 2020USD ($) | |
Cash Paid For Amounts Included In Measurement Of Lease Liabilities [Abstract] | |
Finance Lease, Principal Payments | $ 44.8 |
Finance Lease, Interest Payment on Liability | 9.1 |
Operating Lease, Payments | 9.6 |
Right-of-Use Asset Obtained in Exchange for Finance Lease Liability | 11.9 |
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability | $ 53.2 |
Leases - Schedule of Maturities
Leases - Schedule of Maturities of Operating And Finance Lease Liabilities (Details) $ in Millions | Mar. 31, 2020USD ($) |
Leases [Abstract] | |
Finance Lease, Liability, Payments, Remainder of Fiscal Year | $ 5.9 |
Finance Lease, Liability, Payments, Due Year Two | 21.6 |
Finance Lease, Liability, Payments, Due Year Three | 19.3 |
Finance Lease, Liability, Payments, Due Year Four | 18 |
Finance Lease, Liability, Payments, Due Year Five | 17 |
Finance Lease, Liability, Payments, Due after Year Five | 142.4 |
Finance Lease, Liability, Payment, Due | 224.2 |
Finance Lease, Liability, Undiscounted Excess Amount | 87.1 |
Finance Lease, Liability | 137.1 |
Lessee, Operating Lease, Liability, Payments, Remainder of Fiscal Year | 4.4 |
Lessee, Operating Lease, Liability, Payments, Due Year Two | 17.5 |
Lessee, Operating Lease, Liability, Payments, Due Year Three | 16.6 |
Lessee, Operating Lease, Liability, Payments, Due Year Four | 16.1 |
Lessee, Operating Lease, Liability, Payments, Due Year Five | 12.1 |
Lessee, Operating Lease, Liability, Payments, Due after Year Five | 43.5 |
Lessee, Operating Lease, Liability, Payments, Due | 110.2 |
Lessee, Operating Lease, Liability, Undiscounted Excess Amount | 21.7 |
Operating Lease, Liability | 88.5 |
Total Lease Liability Payments Remainder Of Fiscal Year | 10.3 |
Total Lease Liability Payments Due Year Two | 39.1 |
Total Lease Liability Payments Due Year Three | 35.9 |
Total Lease Liability Payments Due Year Four | 34.1 |
Total Lease Liability Payments Due Year Five | 29.1 |
Total Lease Liability Payments Due After Year Five | 185.9 |
Total Lease Liability Payments Due | 334.4 |
Total Lease Liability Undiscounted Excess Amount | 108.8 |
Total Lease Liability | $ 225.6 |
Segment Information - Net Reven
Segment Information - Net Revenue and Segment Ebitda (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | ||
Segment Reporting, Revenue & EBITDA Reconciling Item [Line Items] | |||||
Net revenue | $ 760.6 | $ 617.5 | $ 2,146.7 | $ 1,792.3 | |
Inter-segment revenue elimination | (2) | (1.8) | (6.5) | (7.4) | |
Segment Reporting Information Unallocated Expense | [1] | (63.9) | (26) | (134.6) | (95.2) |
Softgel and Oral Technologies | |||||
Segment Reporting, Revenue & EBITDA Reconciling Item [Line Items] | |||||
Net revenue | 242.3 | 254 | 770.8 | 748.5 | |
Segment EBITDA | 60.1 | 56.3 | 171 | 152.3 | |
Biologics | |||||
Segment Reporting, Revenue & EBITDA Reconciling Item [Line Items] | |||||
Net revenue | 250 | 133.7 | 663.8 | 395.8 | |
Segment EBITDA | 51.9 | 35.8 | 150.7 | 101.9 | |
Oral and Specialty Drug Delivery | |||||
Segment Reporting, Revenue & EBITDA Reconciling Item [Line Items] | |||||
Net revenue | 181.4 | 153.8 | 457.2 | 419.1 | |
Segment EBITDA | 56.2 | 49 | 117 | 113.9 | |
Clinical Supply Services | |||||
Segment Reporting, Revenue & EBITDA Reconciling Item [Line Items] | |||||
Net revenue | 88.9 | 77.8 | 261.4 | 236.3 | |
Segment EBITDA | 24.6 | 20.3 | 70.2 | 61.5 | |
Total Catalent sub-total of Segment Reporting [Member] | |||||
Segment Reporting, Revenue & EBITDA Reconciling Item [Line Items] | |||||
Segment EBITDA | $ 192.8 | $ 161.4 | $ 508.9 | $ 429.6 | |
[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, EBITDA, Re
Segment Information, EBITDA, Reconciling Items (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | ||||
Unallocated costs [Abstract] | |||||||
Impairment Charges And Gain Loss On Sale Of Assets | $ (0.6) | $ 0.1 | $ (2.1) | $ (2.7) | |||
Stock-based compensation | 8.6 | 6.6 | 35.5 | 24.1 | |||
Restructuring And Other Special Items | 8.9 | 16.1 | 28.6 | [1] | 35.2 | [1] | |
Other income/(expense),net | [2] | (36.7) | 3.2 | (37.2) | (3.9) | ||
Non Allocated Corporate Costs Net | 9.1 | 6.6 | 31.2 | 29.3 | |||
Segment Reporting Information Unallocated Expense | [3] | $ 63.9 | $ 26 | $ 134.6 | $ 95.2 | ||
[1] | Restructuring and other special items during the nine months ended March 31, 2020 include transaction and integration costs associated with the Company’s gene and cell therapy acquisitions, the disposal of one of its sites in Australia, and other restructuring initiatives across the Company's network of sites. Restructuring and other special items during the nine months ended March 31, 2019 include transaction and integration costs associated with the acquisitions of Catalent Indiana LLC and Juniper Pharmaceuticals, Inc. | ||||||
[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 | 9 Months Ended | |||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | ||
Segment Reporting [Abstract] | |||||
Segment Reporting Information Unallocated Expense | [1] | $ 63.9 | $ 26 | $ 134.6 | $ 95.2 |
Depreciation and amortization | 64.8 | 66.4 | 187.3 | 173.9 | |
Interest expense, net | 34.4 | 26.4 | 105.6 | 80 | |
Income tax expense(benefit) | 8.8 | 10.9 | 14.9 | 14.2 | |
Earnings/(loss) from continuing operations | $ 20.9 | $ 31.7 | $ 66.5 | $ 66.3 | |
[1] | Unallocated costs include restructuring and special items, equity-based compensation, impairment charges, certain other corporate directed costs, and other costs that are not allocated to the segments as follows: |
Segment Information - Total Ass
Segment Information - Total Assets for Each Segment and Reconciling in Consolidated Financial Statements (Detail) - USD ($) $ in Millions | Mar. 31, 2020 | Jun. 30, 2019 |
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | $ 7,079.6 | $ 6,184 |
Softgel and Oral Technologies | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | 1,453.7 | 1,586.5 |
Biologics | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | 3,500.7 | 2,825.7 |
Oral and Specialty Drug Delivery | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | 1,186.4 | 1,098.7 |
Clinical Supply Services | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | 455.1 | 463.2 |
Corporate and Eliminations [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | $ 483.7 | $ 209.9 |
Supplemental Balance Sheet In_3
Supplemental Balance Sheet Information - Inventory (Detail) - USD ($) $ in Millions | Mar. 31, 2020 | Jun. 30, 2019 |
Inventory, Net [Abstract] | ||
Raw materials and supplies | $ 213.7 | $ 161.6 |
Work-in-process | 108.2 | 115 |
Total inventories, gross | 321.9 | 276.6 |
Inventory cost adjustment | (24.7) | (19.4) |
Inventories | $ 297.2 | $ 257.2 |
Supplemental Balance Sheet In_4
Supplemental Balance Sheet Information - Prepaid and Other Assets (Detail) - USD ($) $ in Millions | Mar. 31, 2020 | Jun. 30, 2019 |
Prepaid Expense and Other Assets, Current [Abstract] | ||
Prepaid expenses | $ 33.1 | $ 18.7 |
Contract with Customer, Asset, Net, Current | 35.6 | 23.3 |
Spare parts supplies | 23.1 | 8.1 |
Prepaid income tax | 11 | 10 |
Non-U.S. value added tax | 12 | 16.4 |
Other current assets | 27 | 23.6 |
Prepaid expenses and other | $ 141.8 | $ 100.1 |
Supplemental Balance Sheet In_5
Supplemental Balance Sheet Information - Property and Equipment (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | Jun. 30, 2019 | |
Property, Plant and Equipment, Net [Abstract] | |||||
Land Buildings And Improvements | $ 1,174.6 | $ 1,174.6 | $ 1,049.4 | ||
Machinery, equipment, and capitalized software | 1,143.5 | 1,143.5 | 1,104.9 | ||
Furniture and fixtures | 19.2 | 19.2 | 16.9 | ||
Construction in progress | 426.9 | 426.9 | 278.9 | ||
Property, plant, and equipment, at cost | 2,764.2 | 2,764.2 | 2,450.1 | ||
Accumulated depreciation | (994.7) | (994.7) | (913.4) | ||
Property, plant, and equipment, net | 1,769.5 | 1,769.5 | $ 1,536.7 | ||
Depreciation Expense on Reclassified Assets | $ 41.8 | $ 35 | $ 121 | $ 104.8 |
Supplemental Balance Sheet In_6
Supplemental Balance Sheet Information - Other Accrued Liabilities (Detail) - USD ($) $ in Millions | Mar. 31, 2020 | Jun. 30, 2019 |
Balance Sheet Related Disclosures [Abstract] | ||
Accrued employee-related expenses | $ 119.2 | $ 103.9 |
Restructuring accrual | 3.8 | 8.2 |
Accrued interest | 12.1 | 11.7 |
Contract liability | 160.2 | 155.2 |
Accrued income tax | 0 | 8.5 |
Other accrued liabilities and expenses | 73.8 | 50.9 |
Other accrued liabilities | $ 369.1 | $ 338.4 |
Subsequent Events,Loan Agreemen
Subsequent Events,Loan Agreement (Details) - U.S. Denominated Term Loan [Member] - Subsequent Event [Member] $ in Millions | Apr. 30, 2020USD ($) |
Interest Rate Swap [Line Items] | |
Total Debt, U.S Denominated Term Loan | $ 500 |
Total Fixed Rate | 3.51% |
Debt Instrument, Interest Rate, Effective Percentage | 1.26% |
Minimum [Member] | LIBOR Rate [Domain] | |
Interest Rate Swap [Line Items] | |
Debt Instrument, Basis Spread on Variable Rate | 1.00% |
Maximum [Member] | LIBOR Rate [Domain] | |
Interest Rate Swap [Line Items] | |
Debt Instrument, Basis Spread on Variable Rate | 2.25% |