Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Mar. 31, 2021 | Apr. 27, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2021 | |
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 | 2021 | |
Document Fiscal Period Focus | Q3 | |
Entity Central Index Key | 0001596783 | |
Current Fiscal Year End Date | --06-30 | |
Entity Common Stock, Shares Outstanding (shares) | 170,341,553 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | ||
Income Statement [Abstract] | |||||
Net revenue | $ 1,053.3 | $ 760.6 | $ 2,809.8 | $ 2,146.7 | |
Cost of sales | 687.7 | 521.8 | 1,897.1 | 1,498 | |
Gross margin | 365.6 | 238.8 | 912.7 | 648.7 | |
Selling, general, and administrative expenses | 172.7 | 136.1 | 502.9 | 419.9 | |
Impairment charges and (gain)/loss on sale of assets | 5.3 | 0.6 | 7.7 | 1 | |
Restructuring and other | 3 | 1.3 | 9.4 | 2.5 | |
Payments for (Proceeds from) Businesses and Interest in Affiliates | [1] | (184) | 0 | (184) | 1.1 |
Operating earnings | 368.6 | 100.8 | 576.7 | 224.2 | |
Interest expense, net | 26.9 | 34.4 | 78.1 | 105.6 | |
Other (income)/expense, net | [2] | 24.6 | 36.7 | 5.1 | 37.2 |
Earnings from continuing operations, before income taxes | 317.1 | 29.7 | 493.5 | 81.4 | |
Income tax expense | 85.3 | 8.8 | 90.9 | 14.9 | |
Net earnings/(loss) | 231.8 | 20.9 | 402.6 | 66.5 | |
Participating Securities, Distributed and Undistributed Earnings (Loss), Basic | 14.7 | 9.1 | 42.5 | 27.8 | |
Net Income (Loss) Available to Common Stockholders, Basic | $ 217.1 | $ 11.8 | $ 360.1 | $ 38.7 | |
Earnings Per Share, Basic | $ 1.27 | $ 0.08 | $ 2.15 | $ 0.26 | |
Earnings Per Share, Diluted | $ 1.26 | $ 0.08 | $ 2.12 | $ 0.26 | |
[1] | Gain on sale of subsidiary for the three and nine months ended March 31, 2021 is affiliated with the sale of the Blow-Fill-Seal Business. Loss on sale of subsidiary for the nine months ended March 31, 2020 is affiliated with the disposal of a facility in Australia. | ||||
[2] | Refer to Note 8, Other expense, net for details of financing charges and foreign currency translation adjustments recorded within other expense, net. |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income / (Loss) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Other comprehensive income/(loss), net of tax | ||||
Net earnings/(loss) | $ 231.8 | $ 20.9 | $ 402.6 | $ 66.5 |
Foreign currency translation adjustments | (0.2) | (43.1) | 55.1 | (42.8) |
Pension and other post-retirement adjustments | 0.6 | 0.1 | 1.6 | 3.1 |
Available for sale investments | (0.2) | 0 | (0.2) | 0 |
Net change in derivatives and hedges, net of tax | 5.5 | 0 | 5.9 | 0 |
Other comprehensive income/(loss), net of tax | 5.7 | (43) | 62.4 | (39.7) |
Comprehensive income/(loss) | $ 237.5 | $ (22.1) | $ 465 | $ 26.8 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Mar. 31, 2021 | Jun. 30, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 988.1 | $ 953.2 |
Trade receivables, net | 834.9 | 838.1 |
Inventories | 527.9 | 323.8 |
Prepaid expenses and other | 348.9 | 177.9 |
Marketable Securities | 74.7 | 0 |
Total current assets | 2,774.5 | 2,293 |
Property, plant, and equipment, net | 2,358.8 | 1,900.8 |
Other assets: | ||
Goodwill | 2,515 | 2,470.6 |
Other intangibles, net | 834.8 | 888.7 |
Deferred Income Tax Assets, Net | 44.1 | 49.4 |
Other Assets, Noncurrent | 241.9 | 174 |
Total assets | 8,769.1 | 7,776.5 |
Current Liabilities: | ||
Debt, Current | 73.6 | 72.9 |
Accounts payable | 365.7 | 321 |
Other accrued liabilities | 699.9 | 499.3 |
Total current liabilities | 1,139.2 | 893.2 |
Long-term obligations, less current portion | 3,149.6 | 2,945.1 |
Pension liability | 140 | 135.2 |
Deferred Income Taxes | 100.3 | 94 |
Other liabilities | 167.8 | 203.6 |
Total liabilities | 4,696.9 | 4,271.1 |
Temporary Equity, Carrying Amount, Attributable to Parent | 359 | 606.6 |
Common Stock, Value, Outstanding | 1.7 | 1.6 |
Preferred Stock, Value, Outstanding | 0 | 0 |
Additional paid in capital | 4,185.7 | 3,818.7 |
Accumulated deficit | (150.3) | (535.2) |
Accumulated other comprehensive income/(loss) | (323.9) | (386.3) |
Total shareholders' equity | 3,713.2 | 2,898.8 |
Total liabilities, redeemable preferred stock, and shareholders’ equity | $ 8,769.1 | $ 7,776.5 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2021 | Jun. 30, 2020 |
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) | 170,133,258 | 162,788,043 |
Common Stock, Shares, Outstanding | 170,133,258 | 162,788,043 |
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 | 384,777 | 650,000 |
Preferred Stock, Shares Outstanding | 384,777 | 650,000 |
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) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Temporary Equity, Carrying Amount, Attributable to Parent | $ 606.6 | ||||
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 | ||||
Temporary Equity, Carrying Amount, Attributable to Parent | 606.6 | ||||
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 | 0 | 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 | ||||
Temporary Equity, Carrying Amount, Attributable to Parent | 606.6 | ||||
Temporary Equity, Carrying Amount, Attributable to Parent | 606.6 | ||||
Beginning Balance at Jun. 30, 2020 | 2,898.8 | $ 1.6 | 3,818.7 | (535.2) | (386.3) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Equity offering, sale of common stock, | 81.8 | 81.8 | |||
Shares Issued, Value, Share-based Payment Arrangement, after Forfeiture | 0 | ||||
Stock Issued During Period, Value, Conversion of Convertible Securities | 253 | 0.1 | 252.9 | ||
Stock-based compensation | 38.5 | 38.5 | |||
Cash paid, in lieu of equity, for tax withholding | (27.8) | (27.8) | |||
APIC, Share-based Payment Arrangement, ESPP, Increase for Cost Recognition | 6.2 | 6.2 | |||
APIC, Share-based Payment Arrangement, Option, Increase for Cost Recognition | 15.4 | 15.4 | |||
Dividends, Preferred Stock | 17.7 | 17.7 | |||
Net earnings/(loss) | 402.6 | 402.6 | |||
Other comprehensive income/(loss), net of tax | 62.4 | 62.4 | |||
Ending Balance at Mar. 31, 2021 | 3,713.2 | $ 1.7 | 4,185.7 | (150.3) | (323.9) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Temporary Equity, Carrying Amount, Period Increase (Decrease) | (247.6) | ||||
Equity offering, sale of common stock | 1,162,500 | ||||
Temporary Equity, Carrying Amount, Attributable to Parent | 359 | ||||
Beginning Balance at Dec. 31, 2020 | 3,455.5 | $ 1.7 | 4,160.8 | (377.4) | (329.6) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Shares Issued, Value, Share-based Payment Arrangement, after Forfeiture | 0 | 0 | |||
Stock-based compensation | 8.4 | 8.4 | |||
Cash paid, in lieu of equity, for tax withholding | (1.4) | (1.4) | |||
APIC, Share-based Payment Arrangement, ESPP, Increase for Cost Recognition | 2.5 | 2.5 | |||
APIC, Share-based Payment Arrangement, Option, Increase for Cost Recognition | 15.4 | 15.4 | |||
Dividends, Preferred Stock | 4.7 | 4.7 | |||
Net earnings/(loss) | 231.8 | 231.8 | |||
Other comprehensive income/(loss), net of tax | 5.7 | 5.7 | |||
Ending Balance at Mar. 31, 2021 | 3,713.2 | $ 1.7 | $ 4,185.7 | $ (150.3) | $ (323.9) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Temporary Equity, Carrying Amount, Attributable to Parent | $ 359 |
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, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning Balance - Common Stock Outstanding (shares) | 162,788,043 | |||
Ending Balance - Common Stock Outstanding (shares) | 170,133,258 | 170,133,258 | ||
Common Stock | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning Balance - Common Stock Outstanding (shares) | 170,133,300 | 146,359,500 | 162,788,000 | 145,738,300 |
Equity offering, sale of common stock | 8,445,900 | 1,162,500 | 8,445,900 | |
Shares Issued, Shares, Share-based Payment Arrangement, after Forfeiture | 165,900 | 956,400 | ||
Share issuances related to stock-based compensation | 62,400 | 683,600 | ||
Stock Issued During Period, Shares, Conversion of Convertible Securities | 5,392,300 | |||
Ending Balance - Common Stock Outstanding (shares) | 170,299,200 | 154,867,800 | 170,299,200 | 154,867,800 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 9 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | ||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net earnings/(loss) | $ 402.6 | $ 66.5 | |
Adjustments to reconcile earnings/(loss) from operations to net cash from operations: | |||
Depreciation and amortization | 216 | 187.3 | |
Non-cash foreign currency transaction (gain)/loss, net | (6.7) | 2.5 | |
Amortization and write-off of debt financing costs | 9.4 | 10.7 | |
Asset impairments charges and (gain)/loss on sale of assets | 7.7 | 1 | |
Payments for (Proceeds from) Businesses and Interest in Affiliates | [1] | (184) | 1.1 |
Debt Call Premium Fees | 17.2 | 10 | |
Derivative, Gain (Loss) on Derivative, Net | (16.4) | 24.9 | |
Stock-based compensation | 38.5 | 35.5 | |
Provision/(benefit) for deferred income taxes | 17.8 | 5.4 | |
Provision for bad debts and inventory | 40 | 11.4 | |
Change in operating assets and liabilities: | |||
Decrease/(increase) in trade receivables | (1.2) | (15.5) | |
Decrease/(increase) in inventories | (240) | (54.7) | |
Increase/(decrease) in accounts payable | 36.6 | 29.9 | |
Other assets/accrued liabilities, net — current and non-current | (38.8) | (48.4) | |
Net Cash Provided by (Used in) Operating Activities, Total | 298.7 | 267.6 | |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Acquisition of property and equipment and other productive assets | (497.1) | (303.5) | |
Payments to Acquire Debt Securities, Available-for-sale | 74.9 | 0 | |
Proceeds from Sale of Property, Plant, and Equipment | 0.5 | 0 | |
Proceeds from Divestiture of Interest in Consolidated Subsidiaries | 286.8 | 20.8 | |
Payment for acquisitions, net of cash acquired | (147.1) | (379.7) | |
Payments to Acquire Investments | 4.1 | 2.4 | |
Net cash (used in) investing activities | (435.9) | (664.8) | |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Net change in other borrowings | 1.6 | (45.2) | |
Proceeds from Issuance of Debt | 166.6 | 1,109.1 | |
Payments related to long-term obligations | (54.8) | (808.9) | |
Payments of Debt Issuance Costs | (18.7) | (25.1) | |
Dividends and Interest Paid | (17.7) | (28.1) | |
Proceeds from sale of common stock, net | 81.8 | 494.2 | |
Cash paid, in lieu of equity, for tax withholding | (27.8) | (25.3) | |
Proceeds from (Repurchase of) Equity [Abstract] | |||
Proceeds from Stock Options Exercised | 22.1 | 0 | |
Proceeds from (Payments for) Other Financing Activities | 6.2 | 0 | |
Net cash (used in)/provided by financing activities | 159.3 | 670.7 | |
Effect of foreign currency exchange on cash | 12.8 | (10.5) | |
NET INCREASE/(DECREASE) IN CASH AND EQUIVALENTS | 34.9 | 263 | |
CASH AND EQUIVALENTS AT BEGINNING OF PERIOD | 953.2 | 345.4 | |
CASH AND EQUIVALENTS AT END OF PERIOD | 988.1 | 608.4 | |
SUPPLEMENTARY CASH FLOW INFORMATION: | |||
Interest paid | 97 | 88.7 | |
Income taxes paid, net | $ 24.8 | $ 38.9 | |
[1] | Gain on sale of subsidiary for the three and nine months ended March 31, 2021 is affiliated with the sale of the Blow-Fill-Seal Business. Loss on sale of subsidiary for the nine months ended March 31, 2020 is affiliated with the disposal of a facility in Australia. |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 9 Months Ended |
Mar. 31, 2021 | |
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 ( “U.S. 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 U.S. 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, 2021 are not necessarily indicative of the results that may be expected for the year ending June 30, 2021. The consolidated balance sheet at June 30, 2020 has been derived from the audited consolidated financial statements at that date but does not include all of the information and footnotes required by U.S. 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, 2020 filed with the Securities and Exchange Commission. Reclassifications Certain prior period balances have been reclassified to conform to the current period presentation. These reclassifications did not have a material impact on the consolidated statements of operations, consolidated balance sheets, consolidated statements of cash flows, or notes to the consolidated financial statements. 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 utilizing period-end exchange rates. Since July 1, 2018, the Company has accounted for its Argentine operations as highly inflationary. Allowance for Credit Losses Trade receivables and contract assets are primarily comprised of amounts owed to the Company through its operating activities and are presented net of an allowance that includes an assessment of expected credit losses. The Company determines its allowance methodology by considering various factors, including the Company’s previous loss history, significant changes in a geographic location's economic conditions, and the current and anticipated future condition of the general economy and the industries in which the Company's customers operate. To the extent that any individual payer is identified whose credit quality has deteriorated, the Company establishes allowances based on the individual risk characteristics of such customer. The Company makes concerted efforts to collect all outstanding balances due from customers; however, trade receivables and contract assets are written off against the allowance when the related balances are no longer deemed collectible. Marketable Securities The Company classifies its liquid debt investments with original maturities greater than ninety days as marketable securities. The Company invests in highly rated corporate debt securities, with the primary objective of minimizing the potential risk of principal loss. The Company’s investment policy generally requires securities to be investment grade and limits the amount of credit exposure to any single issuer. The Company regularly reviews its investments and utilizes quantitative and qualitative evidence to evaluate potential impairments. If the cost of an investment exceeds its fair value, the Company evaluates, among other factors, general market conditions, the credit quality of debt instrument issuers, and the duration and extent to which the cost of the investment exceeds its fair value. The Company may sell certain of its marketable securities prior to the stated maturity for various reasons, including management of liquidity, credit risk, duration, relative return, and asset allocation, and therefore, has classified its marketable securities as available-for-sale. The Company determines the fair value of each marketable security in its portfolio at each period end and recognizes gains and losses in the portfolio in other comprehensive income (loss), net. As of March 31, 2021, the amortized cost basis of marketable securities approximates fair value and all outstanding marketable securities mature within one year. Research and Development Costs The Company expenses research and development costs as incurred. Research and development costs amounted to $3.4 million and $5.9 million for the three months ended March 31, 2021 and 2020, respectively. Research and development costs amounted to $15.0 million and $15.4 million for the nine months ended March 31, 2021 and 2020, respectively. Recent Financial Accounting Standards Recently Adopted Accounting Standards In August 2018, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“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 Company adopted the guidance on July 1, 2020. The guidance did not have a material impact on the Company’s financial condition or results of operations. 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 Accounting Standards Codification ( “ ASC ”) 820, Fair Value Measurement . The guidance eliminates certain disclosure requirements that are no longer considered cost beneficial and adds new disclosure requirements for Level 3 fair value measurements. The Company adopted the guidance on July 1, 2020. The guidance did not have a material impact on the Company’s financial condition or results of operations. 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”). CECL requires earlier recognition of credit losses on financial assets, while also providing additional transparency about credit risk. The CECL model utilizes a lifetime expected credit loss measurement objective for the recognition of credit losses for financial assets at the time they are originated or acquired. The expected credit losses are adjusted each period for changes in expected lifetime credit losses. This model replaces the multiple existing impairment models in current U.S. GAAP, which generally require that a loss be incurred before it is recognized. The new standard applies to receivables arising from revenue transactions such as contract assets and accounts receivables. The Company adopted the amended guidance using a modified retrospective approach on July 1, 2020. The amended guidance did not have a material impact on the Company’s financial condition or results of operations. New Accounting Standards Not Adopted as of March 31, 2021 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 intra-period 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. |
Revenue Recognition
Revenue Recognition | 9 Months Ended |
Mar. 31, 2021 | |
Revenue Recognition [Abstract] | |
Revenue from Contract with Customer [Policy Text Block] | REVENUE RECOGNITION The Company recognizes revenue in accordance with ASC 606, Revenue from Contracts with Customers . 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, 2021 and March 31, 2020, by type of activity and reporting segment (in millions): Three Months Ended March 31, 2021 Biologics Softgel and Oral Technologies Oral and Specialty Delivery Clinical Supply Services Total Manufacturing & commercial product supply $ 147.5 $ 212.0 $ 118.3 $ — $ 477.8 Development services 396.2 31.7 53.4 — 481.3 Clinical supply services — — — 100.0 100.0 Total $ 543.7 $ 243.7 $ 171.7 $ 100.0 $ 1,059.1 Inter-segment revenue elimination (5.8) Combined net revenue $ 1,053.3 Three Months Ended March 31, 2020 Biologics Softgel and Oral Technologies Oral and Specialty Delivery Clinical Supply Services Total Manufacturing & commercial product supply $ 85.2 $ 217.6 $ 127.2 $ — $ 430.0 Development services 164.8 24.7 54.2 — 243.7 Clinical supply services — — — 88.9 88.9 Total $ 250.0 $ 242.3 $ 181.4 $ 88.9 $ 762.6 Inter-segment revenue elimination (2.0) Combined net revenue $ 760.6 Nine Months Ended March 31, 2021 Biologics Softgel and Oral Technologies Oral and Specialty Delivery Clinical Supply Services Total Manufacturing & commercial product supply $ 361.8 $ 616.4 $ 335.3 $ — $ 1,313.5 Development services 962.9 95.0 164.6 — 1,222.5 Clinical supply services — — — 286.2 286.2 Total $ 1,324.7 $ 711.4 $ 499.9 $ 286.2 $ 2,822.2 Inter-segment revenue elimination (12.4) Combined net revenue $ 2,809.8 Nine Months Ended March 31, 2020 Biologics Softgel and Oral Technologies Oral and Specialty Delivery Clinical Supply Services Total Manufacturing & commercial product supply $ 229.6 $ 701.5 $ 294.5 $ — $ 1,225.6 Development services 434.2 69.3 162.7 — 666.2 Clinical supply services — — — 261.4 261.4 Total $ 663.8 $ 770.8 $ 457.2 $ 261.4 $ 2,153.2 Inter-segment revenue elimination (6.5) Combined net revenue $ 2,146.7 The following table allocates revenue by the location where the goods were made or the service performed: Three Months Ended Nine Months Ended (Dollars in millions) 2021 2020 2021 2020 United States $ 670.0 $ 438.9 $ 1,722.2 $ 1,215.9 Europe 344.9 258.7 954.8 690.1 Other 61.9 83.5 200.6 299.8 Elimination of revenue attributable to multiple locations (23.5) (20.5) (67.8) (59.1) Total $ 1,053.3 $ 760.6 $ 2,809.8 $ 2,146.7 Contract Liabilities Contract liabilities relate to cash consideration that the Company receives in advance of satisfying the related performance obligations. The contract liabilities balance (current and non-current) as of March 31, 2021 and June 30, 2020 are as follows: (Dollars in millions) Balance at June 30, 2020 $ 218.4 Balance at March 31, 2021 $ 300.6 Revenue recognized in the period from July 1 through March 31, 2021: Amounts included in contract liability at the beginning of the period $ 147.5 Contract Assets Contract assets primarily relate to the Company's conditional right to receive consideration for services that have been performed for a customer as of March 31, 2021 relating to the Company's development services but had not yet been invoiced as of March 31, 2021. Contract assets are transferred to trade receivables, net when the Company’s right to receive the consideration becomes unconditional. Contract assets totaled $177.4 million and $61.4 million as of March 31, 2021 and June 30, 2020, respectively. Contract assets are included in prepaid expenses and other in the consolidated balance sheets. |
Business Combinations
Business Combinations | 9 Months Ended |
Mar. 31, 2021 | |
Business Combinations [Abstract] | |
Business Combination Disclosure [Text Block] | BUSINESS COMBINATIONS AND DIVESTITURES Anagni Acquisition In January 2020, the Company acquired an oral solid, biologics, and sterile product manufacturing and packaging facility in Anagni, Italy (“Anagni”) from a unit of Bristol-Myers Squibb Company (“BMS”). 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 purchase price with cash on hand and has allocated the purchase price among the acquired assets, recognizing property, plant, and equipment of $34.2 million, inventory of $6.5 million, and prepaid expenses and other of $12.2 million. The remainder of the value was allocated to deferred tax assets and certain employee-related liabilities assumed in the acquisition. During the measurement period that ended in January 2021, the Company obtained information to finalize the fair values of the net assets acquired, which were not materially different from the original estimates. Masthercell Global Inc. Acquisition In February 2020, the Company acquired 100% of the equity interest in Masthercell Global Inc. (“MaSTherCell”) for an aggregate purchase price of $323.3 million, which was funded with the net proceeds of the Company’s February 2020 public offering (the “February 2020 Equity Offering”) of its common stock, par value $0.01 (“Common Stock”). See Note 14, Equity, Redeemable Preferred Stock and Accumulated Other Comprehensive Loss . MaSTherCell is a contract development and manufacturing organization focused on the development and manufacture of autologous and allogeneic cell therapies for third parties, as well as a variety of related analytical services. 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. The Company estimated fair values at the date of acquisition for the allocation of consideration to the net tangible and intangible assets acquired and liabilities assumed as part of the MaSTherCell acquisition. The Company recognized, property, plant and equipment of $25.5 million, $51.0 million for identifiable intangible assets, $1.2 million for other net assets, and $7.7 million for deferred income tax liabilities. The remainder of the fair value, $253.3 million, was allocated to goodwill. Goodwill is mainly comprised of the growth from an expected increase in capacity utilization, potential new customers, and advanced cell therapy development and manufacturing capabilities. During the measurement period that ended in February 2021, the Company obtained information to finalize the fair values of the net assets acquired, which were not materially different from the original estimates. Skeletal Cell Therapy Support SA Acquisition In November 2020, the Company acquired 100% of the equity interest in Skeletal Cell Therapy Support SA (“Skeletal”) from Bone Therapeutics SA for $14.8 million, subject to customary adjustments, as well as related supply agreements with Bone Therapeutics SA. Skeletal operates a cell therapy manufacturing facility in Gosselies, Belgium. The operations are part of the Company’s Biologics segment, expanding the Company’s cell therapy capacity for clinical and commercial supply. The acquisition, when combined with the Company's other European-based facilities and capabilities in cell therapy, has created an integrated European center of excellence in cell therapy. The Company accounted for the Skeletal acquisition using the acquisition method in accordance with ASC 805. The Company funded the entire purchase price with cash on hand and preliminarily allocated the purchase price among the acquired assets, recognizing an investment in affiliate of $2.6 million and goodwill of $11.6 million. The Company allocated the remainder of the purchase price to trade receivables, property, plant, and equipment, and other current and non-current assets and liabilities assumed in the acquisition. Results for the three and nine months ended March 31, 2021 were not material to the Company’s statement of operations, financial position, or cash flows. The Company has not completed its analysis regarding the assets acquired and liabilities assumed. Therefore, the allocation to investment in affiliate, goodwill, and income taxes are preliminary and subject to finalization. The Company expects to finalize its allocation over the next several months, but, in any event, within one year from the acquisition date. Acorda Therapeutics, Inc. Acquisition In February 2021, the Company acquired the manufacturing and packaging operations of Acorda Therapeutics, Inc.'s ("Acorda") dry powder inhaler and spray dry manufacturing business, including its manufacturing facility located near Boston, Massachusetts, for $82.5 million, subject to customary adjustments. In connection with the purchase, Acorda and the Company entered into a long-term supply agreement, under which the Company will continue the manufacture and packaging of INBRIJA ® at the facility. The facility and operations became part of the Company’s Oral and Specialty Delivery segment. Results of the business acquired were not material to the Company's statement of operations, financial position, or cash flows for the three and nine months ended March 31, 2021. The Company accounted for the Acorda transaction using the acquisition method in accordance with ASC 805. The Company funded the entire purchase price with cash on hand and preliminarily allocated the purchase price among the acquired assets, recognizing property, plant, and equipment of $79.3 million, inventory of $2.1 million, and goodwill of $1.8 million. The remainder of the purchase price was preliminarily allocated to other current and non-current assets and liabilities assumed in the acquisition. The Company has not completed its analysis regarding the assets acquired and liabilities assumed. The Company expects to finalize its allocation over the next several months, but, in any event, within one year from the closing. Delphi Genetics SA Acquisition In February 2021, the Company acquired 100% of the equity interest in Delphi Genetics SA ("Delphi") for $50.0 million, subject to customary adjustments. Delphi is a plasmid DNA (pDNA) cell and gene therapy contract development and manufacturing organization based in Gosselies, Belgium. The facility and operations acquired became part of the Company’s Biologics segment. Results of the business acquired were not material to the Company's statement of operations, financial position, or cash flows for the three and nine months ended March 31, 2021. The Company accounted for the Delphi transaction using the acquisition method in accordance with ASC 805. The Company funded the entire purchase price with cash on hand and preliminarily allocated the purchase price recognizing property, plant, and equipment of $4.2 million, intangible assets of $3.0 million, other current assets of $3.2 million, assumed debt of $5.7 million, other current liabilities of $4.6 million and goodwill of $48.6 million. The Company has not completed its analysis regarding the assets acquired and liabilities assumed. Therefore, the allocation to property, plant, and equipment, intangible assets, goodwill, and income taxes are preliminary and subject to finalization. The Company expects to finalize its allocation over the next several months, but, in any event, within one year from the acquisition date. Hepatic Cell Therapy Support SA Purchase Agreement In March 2021, the Company entered into an agreement to acquire 100% of the equity interest in Hepatic Cell Therapy Support SA (“Hepatic”) from Promethera Biosciences SA for approximately $15.2 million, net of cash acquired and debt assumed. At the same location where Skeletal operates a cell therapy manufacturing facility in Gosselies, Belgium, Hepatic also operates a cell therapy manufacturing facility. On April 22, 2021, the Company completed the acquisition. The operations acquired became part of the Company’s Biologics segment, expanding the Company’s cell therapy capacity for clinical and commercial supply. Due to the date of the closing, a preliminary purchase price allocation has not yet been performed. However, a large portion of the purchase price is expected to be allocated to goodwill. Blow-Fill-Seal Divestiture In March 2021, the Company sold 100% of the shares of Catalent USA Woodstock, Inc. and certain related assets (collectively, the “Blow-Fill-Seal Business”) to a subsidiary of SK Capital Partners, LP for $300.0 million cash, a $50.0 million note receivable (estimated fair value of $47.4 million) as well as potential additional contingent consideration (up to $50.0 million) dependent upon the performance of aspects of the Blow-Fill-Seal Business. The Blow-Fill-Seal Business was part of the Oral and Specialty Delivery segment. The carrying value of the net assets sold was $150.2 million, which included goodwill of $55.8 million. As a result of the sale, the Company realized a gain from divestiture of $184.0 million, net of transaction costs, for the three and nine months ended March 31, 2021. As of December 31, 2020, the Blow-Fill-Seal Business was classified as held-for-sale. The Company determined that the sale of the business did not meet the criteria to be considered a discontinued operation as the disposal of the Blow-Fill-Seal Business did not represent a strategic shift that has (or will have) a major effect on the Company's and financial results upon disposal. All consideration received was measured at its divestiture date fair value. The Company valued the total consideration received from divestiture of the Blow-Fill-Seal Business as follows: (Dollars in millions) Fair value of consideration received Cash, gross $ 300.0 Note receivable (1) 47.4 Contingent consideration (2) — Other (3) (13.2) Total $ 334.2 (1) The note receivable, which provides for interest at a rate of 5.0% paid in kind, had an estimated fair value of $47.4 million at March 31, 2021, which is the $50.0 million aggregate principal amount less a $2.6 million discount determined using a discounted cash flow model with the market interest rate as a significant input. (2) The Company determined that the estimated fair value of the contingent consideration from the sale of the Blow-Fill-Seal Business at March 31, 2021 is zero, and therefore, no contingent consideration was recorded as a result of the divestiture of the Blow-Fill-Seal Business. If any contingent consideration is subsequently received, it will be recorded in the period in which it is received. The Company has elected an accounting policy to recognize increases in the carrying amount of the contingent consideration asset using the gain contingency guidance in ASC 450, Contingencies . |
Goodwill
Goodwill | 9 Months Ended |
Mar. 31, 2021 | |
Goodwill Disclosure [Abstract] | |
Goodwill | GOODWILL The following table summarizes the changes between June 30, 2020 and March 31, 2021 in the carrying amount of goodwill in total and by reporting segment: (Dollars in millions) Biologics Softgel and Oral Technologies Oral and Specialty Delivery Clinical Supply Services Total Balance at June 30, 2020 $ 1,462.2 $ 505.5 $ 354.7 $ 148.2 $ 2,470.6 Additions (1) 58.7 — 1.8 — 60.5 Divestitures (2) — — (55.8) — (55.8) Foreign currency translation adjustments 12.2 7.5 13.0 7.0 39.7 Balance at March 31, 2021 $ 1,533.1 $ 513.0 $ 313.7 $ 155.2 $ 2,515.0 (1) The addition to goodwill in the Biologics reporting segment relates to the Delphi and Skeletal acquisitions. The addition to goodwill in the Oral and Specialty Delivery reporting segment relates to the Acorda acquisition. For further details, see Note 3, Business Combinations and Divestitures . (2) Represents goodwill associated with the divestiture of the Company's Blow-Fill-Seal Business. 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, 2021 | |
Intangible Assets Disclosure [Abstract] | |
Definite Lived Long-Lived Assets | INTANGIBLES, NET The details of other intangibles as of March 31, 2021 and June 30, 2020 are as follows: (Dollars in millions) Weighted Average Life Gross Carrying Value Accumulated Amortization Net Carrying Value March 31, 2021 Amortized intangibles: Core technology 19 years $ 139.9 $ (91.9) $ 48.0 Customer relationships 14 years 1,015.1 (286.4) 728.7 Product relationships 11 years 280.2 (233.8) 46.4 Other 5 years 19.0 (7.3) 11.7 Total other intangibles $ 1,454.2 $ (619.4) $ 834.8 (Dollars in millions) Weighted Average Life Gross Carrying Value Accumulated Amortization Net Carrying Value June 30, 2020 Amortized intangibles: Core technology 19 years $ 134.5 $ (83.0) $ 51.5 Customer relationships 14 years 1,021.3 (248.0) 773.3 Product relationships 11 years 270.4 (217.5) 52.9 Other 5 years 15.5 (4.5) 11.0 Total other intangibles $ 1,441.7 $ (553.0) $ 888.7 Amortization expense related to other intangible assets was $23.3 million and $69.3 million for the three and nine months ended March 31, 2021, respectively, and $23.0 million and $66.3 million for the three and nine months ended March 31, 2020, respectively. Future amortization expense related to other intangible assets for the next five fiscal years is estimated to be: (Dollars in millions) Remainder 2022 2023 2024 2025 2026 Amortization expense $ 23.2 $ 92.1 $ 91.4 $ 90.7 $ 89.7 $ 82.1 |
Long-Term Obligations and Other
Long-Term Obligations and Other Short-Term Borrowings | 9 Months Ended |
Mar. 31, 2021 | |
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, 2021 and June 30, 2020: (Dollars in millions) Maturity March 31, 2021 June 30, Senior secured credit facilities Term loan facility B-2 May 2026 $ — $ 938.1 Term loan facility B-3 February 2028 1,000.0 — 4.875% senior notes due 2026 January 2026 — 450.0 5.000% senior notes due 2027 July 2027 500.0 500.0 2.375% Euro senior notes due 2028 (1) March 2028 974.0 925.6 3.125% senior notes due 2029 February 2029 550.0 — Deferred purchase consideration October 2021 49.1 97.5 Finance lease obligations 2021 to 2044 185.0 142.2 Other obligations 2021 to 2024 2.6 1.4 Debt issuance costs (37.5) (36.8) Total debt $ 3,223.2 $ 3,018.0 Less: current portion of long-term obligations and other short-term 73.6 72.9 Long-term obligations, less current portion $ 3,149.6 $ 2,945.1 (1) The increase in euro-denominated debt is primarily due to large fluctuations in foreign currency exchange rates. Senior Secured Credit Facilities and Fifth Amendment to the Credit Agreement In February 2021, the Company completed Amendment No. 5 (the "Fifth Amendment") to its Amended and Restated Credit Agreement, dated as of May 20, 2014 (as subsequently amended, the "Credit Agreement"). Pursuant to the Fifth Amendment, the Company refinanced the existing $933.4 million aggregate principal amount of U.S. dollar-denominated term loans (the "Term B-2 Loans") with the proceeds of an equivalent amount of new U.S. dollar-denominated term loans (the "Term B-3 Loans"), incurred an additional $66.6 million aggregate principal amount of Term B-3 Loans, and obtained an additional $175.0 million of revolving credit commitments (the "Incremental Revolving Credit Commitments"). The Term B-3 Loans constitute a new class of term loans under the Credit Agreement, with an interest rate of one-month LIBOR (subject to a floor of 0.50%) plus 2.00% per annum, a maturity date of February 2028, and otherwise with the same principal terms as the prior Term B-2 Loans under the Credit Agreement, including quarterly amortization of 0.25%. The Incremental Revolving Credit Commitments constitute revolving credit commitments under the Credit Agreement with the same principal terms as the existing revolving credit commitments under the Credit Agreement. The proceeds of the Term B-3 Loans, after payment of the offering fees and expenses, were used to repay in full the existing Term B-2 Loans under the Credit Agreement, plus any accrued and unpaid interest thereon, with the remainder available for general corporate purposes. In addition, pursuant to the Fifth Amendment, certain modifications were made to the Credit Agreement in order to, among other things, provide for determination of a benchmark replacement interest rate when LIBOR is no longer available. U.S. dollar-denominated 3.125% Senior Notes due 2029 In February 2021, Operating Company completed a private offering of $550.0 million aggregate principal amount of 3.125% Senior Notes due 2029 (the "2029 Notes"). The 2029 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 2029 Notes will mature on February 15, 2029 and bear interest at the rate of 3.125% per annum payable semi-annually in arrears on February 15 and August 15 of each year, beginning on August 15, 2021. The proceeds of the 2029 Notes after payment of the offering fees and expenses were used to repay in full the outstanding borrowings under Operating Company's U.S. dollar-denominated 4.875% Senior Notes that would have matured in January 2026 (the "2026 Notes"), plus any accrued and unpaid interest thereon, with the remainder available for general corporate purposes. 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, October 2019, and October 2020. 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. Measurement of the Estimated Fair Value of Debt The measurement of the estimated fair value of the Company’s senior secured credit facilities and other senior indebtedness is classified as a Level 2 determination in the fair-value hierarchy and is calculated by using a discounted cash flow model with the market interest rate as a significant input. The carrying amounts and the estimated fair values of the Company’s principal categories of debt as of March 31, 2021 and June 30, 2020 are as follows: March 31, 2021 June 30, 2020 (Dollars in millions) Fair Value Measurement Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value 4.875% senior notes due 2026 Level 2 $ — $ — $ 450.0 $ 463.6 5.000% senior notes due 2027 Level 2 500.0 534.3 500.0 537.9 2.375% Euro senior notes due 2028 Level 2 974.0 966.0 925.6 844.1 3.125% senior notes due 2029 Level 2 550.0 514.2 — — Senior secured credit facilities & other Level 2 1,236.7 1,183.0 1,179.2 1,160.1 Subtotal $ 3,260.7 $ 3,197.5 $ 3,054.8 $ 3,005.7 Debt issuance costs (37.5) — (36.8) — Total debt $ 3,223.2 $ 3,197.5 $ 3,018.0 $ 3,005.7 |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Mar. 31, 2021 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | EARNINGS PER SHARE The Company computes earnings per share 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, Equity, Redeemable Preferred Stock and Accumulated Other Comprehensive Loss . Diluted net earnings 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 earnings 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, 2021 and 2020, respectively, are as follows: Three Months Ended Nine Months Ended (In millions except per share data) 2021 2020 2021 2020 Net earnings $ 231.8 $ 20.9 $ 402.6 $ 66.5 Less: Net earnings attributable to preferred shareholders (14.7) (9.1) (42.5) (27.8) Net earnings attributable to common shareholders $ 217.1 $ 11.8 $ 360.1 $ 38.7 Weighted average shares outstanding - basic 170.5 151.3 167.2 147.7 Weighted average dilutive securities issuable - stock plans 2.0 1.8 2.3 1.8 Weighted average shares outstanding - diluted 172.5 153.1 169.5 149.5 Earnings per share: Basic $ 1.27 $ 0.08 $ 2.15 $ 0.26 Diluted $ 1.26 $ 0.08 $ 2.12 $ 0.26 The Company's Series A Preferred Stock is deemed a participating security, meaning that it has the right to participate in undistributed earnings with the Company's Common Stock. On November 23, 2020 (the “Partial Conversion Date”), holders of Series A Preferred Stock converted 265,233 shares and $1.9 million of unpaid accrued dividends into shares of Common Stock (the “Partial Conversion”). The holders received 20.33 shares of Common Stock for each converted preferred share, resulting in the issuance of 5,392,280 shares of Common Stock. See Note 14, Equity, Redeemable Preferred Stock and Accumulated Other Comprehensive Loss for further details. The diluted earnings per share calculations did not include the shares of Common Stock associated with the Series A Preferred Stock or the following outstanding equity grants due to their antidilutive effect: Three Months Ended Nine Months Ended (share counts in millions) 2021 2020 2021 2020 Stock options — 0.3 0.2 0.4 Restricted stock units — 0.1 0.1 0.1 Performance stock units — 0.1 — 0.1 Series A Preferred Stock 7.7 13.1 10.6 13.1 |
Other (Income)_ Expense, Net
Other (Income)/ Expense, Net | 9 Months Ended |
Mar. 31, 2021 | |
Other Income and Expenses [Abstract] | |
Other Income and Other Expense Disclosure [Text Block] | OTHER EXPENSE, NET The components of other expense, net for the three and nine months ended March 31, 2021 and 2020 are as follows: Three Months Ended Nine Months Ended (Dollars in millions) 2021 2020 2021 2020 Other (income) expense, net Debt refinancing costs (1) 17.2 16.0 17.2 16.1 Foreign currency (gains) losses (2) 6.9 (5.3) 6.1 (1.7) Other (3) 0.5 26.0 (18.2) 22.8 Total other expense, net $ 24.6 $ 36.7 $ 5.1 $ 37.2 (1) Debt refinancing costs for the three and nine months ended March 31, 2021 includes (a) a write-off of $4.4 million of previously capitalized financing charges related to the Company’s repaid Term B-2 Loans and the 2026 Notes, (b) $1.8 million of financing charges related to the Company’s Term B-3 Loans, and (c) a $11.0 million premium on early redemption of the 2026 Notes. Debt refinancing costs for the three and nine months ended March 31, 2020 includes (x) a write-off of $6.0 million of previously capitalized financing charges related to the Company’s repaid euro-denominated term loans under its senior secured credit facilities and the Company’s redeemed euro-denominated senior notes and (y) a $10.0 million premium on early redemption of the euro notes. (2) Foreign currency remeasurement gains include both cash and non-cash transactions. (3) Other, for the three and nine months ended March 31, 2 021 includes, in part, total realized and unrealized gain of $0.4 million and $16.4 million, respectively, related to the fair value of the derivative liability associated with the Series A Preferred Stock. Other, for the three and nine months ended March 31, 2020 includes, in part, total unrealized losses of $26.3 million and $24.9 million, respectively, related to the fair value of t he derivative liability associated with the Series A Preferred Stock. |
Restructuring and Other Costs
Restructuring and Other Costs | 9 Months Ended |
Mar. 31, 2021 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and other | 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. During the three months ended December 31, 2020, the Company adopted a plan to reduce costs and optimize its infrastructure in Western Europe by closing its Clinical Supply Services facility in Bolton, U.K. In connection with this restructuring plan, the Company expects to reduce its headcount between 150 and 180 employees through December 31, 2021 and estimates that it will incur charges between $4.0 million and $7.0 million, primarily associated with employee severance benefits. For the three and nine months ended March 31, 2021, restructuring charges associated with the Bolton facility closure were $0.9 million and $4.9 million, respectively. Total restructuring charges for the three months ended March 31, 2021 and 2020 were $3.0 million and $1.3 million, respectively, and for the nine months ended March 31, 2021 and 2020 were $9.4 million and $2.5 million, respectively. |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 9 Months Ended |
Mar. 31, 2021 | |
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, 2021, the Company had euro-denominated debt outstanding of $974.0 million (U.S. dollar equivalent) 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 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, 2021 and 2020. Three Months Ended Nine Months Ended (Dollars in millions) 2021 2020 2021 2020 Unrealized foreign exchange gain (loss) within other comprehensive income $ 32.6 $ 3.7 $ (45.2) $ 17.5 Unrealized foreign exchange gain (loss) within statement of operations $ 1.1 $ 1.9 $ (3.3) $ 7.7 The net accumulated loss on the instrument designated as a hedge as of March 31, 2021 within other comprehensive income (loss) was approximately $17.3 million. Amounts are reclassified out of accumulated other comprehensive loss into earnings when the entity to which the gains and losses relate is either sold or substantially liquidated. Preferred Stock Derivative Liability As discussed in Note 14, Equity, Redeemable Preferred Stock, and Accumulated Other Comprehensive Loss, 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 Company recorded a total gain of $0.4 million and $16.4 million on the change in the estimated fair value of the derivative liability for the three and nine months ended March 31, 2021, respectively, primarily related to appreciation in the price of the Company’s Common Stock that is used to determine the estimated fair value, which is reflected as other expense, net in the consolidated statements of operations. A portion of the derivative liability was settled on the Partial Conversion Date due to the Partial Conversion. The fair value of the derivative liability as of the Partial Conversion Date was $8.6 million, of which $3.5 million was related to the converted portion of the outstanding shares of Series A Preferred Stock. See Note 14, Equity, Redeemable Preferred Stock, and Accumulated Other Comprehensive Loss for details of the Partial Conversion. The estimated fair value of the derivative liability that relates to outstanding shares of Series A Preferred Stock as of March 31, 2021 was $3.7 million. Interest Rate Swap Pursuant to its interest rate and risk management strategy, in 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. In February 2021, in connection with the Fifth Amendment to the Credit Agreement, the Company settled the interest-rate swap agreement with Bank of America N.A. The Company paid $2.3 million in cash to Bank of America N.A to settle the interest-rate swap agreement. This loss is deferred in stockholders’ equity, net of income taxes, as a component of accumulated other comprehensive loss, and amortized as an adjustment to interest expense, net over the original term of the Term B-2 Loans. The net amount of deferred losses on cash flow hedges that is expected to be reclassified from accumulated other comprehensive loss into interest expense, net within the next twelve months is not material. In February 2021, the Company entered into a new 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 Term B-3 Loans, so that the interest payable on that portion of the Term B-3 Loans becomes fixed at a certain rate, thereby reducing the impact of future interest rate changes on future interest expense. 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 B-3 Loans is now effectively fixed at 0.9985%. The new interest-rate swap agreement qualifies for and is designated as a cash-flow hedge. The Company evaluates hedge effectiveness at the inception of the hedge and on an ongoing basis. The cash flows associated with the interest-rate swap are reported in net cash provided by operating activities in the consolidated statements of cash flows. The unrealized gain or loss from the mark-to-market of the interest rate swap valuations during the three and nine months ended March 31, 2021 and the fiscal year ended June 30, 2020 was immaterial in each period. A summary of the estimated fair value of the interest rate swap reported in the consolidated balance sheets is stated in the table below: March 31, 2021 June 30, 2020 (Dollars in millions) Balance Sheet Classification Estimated Fair Value Balance Sheet Classification Estimated Fair Value Interest rate swap Other long-term assets $ 6.3 Other liabilities $ 3.7 |
Fair Value Measures and Disclos
Fair Value Measures and Disclosures | 9 Months Ended |
Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures | FAIR VALUE MEASUREMENTS ASC 820, Fair Value Measurement, defines fair value as the exit price that would be received to sell an asset or paid to transfer a liability. Fair value is a market-based measurement that should be determined using assumptions that market participants would use in pricing an asset or liability. Valuation techniques used to measure fair value should maximize the use of observable inputs and minimize the use of unobservable inputs. To measure fair value, the Company uses the following fair value hierarchy based on three levels of inputs, of which Level 1 and Level 2 are considered observable and Level 3 is considered unobservable: Level 1 – Quoted prices in active markets for identical assets or liabilities. Level 2 – Inputs other than Level 1 that are observable for the asset or liability, either directly or indirectly, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data by correlation or other means. Level 3 – Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Value is determined using pricing models, discounted cash flow methodologies, or similar techniques and also includes instruments for which the determination of fair value requires significant judgment or estimation. Assets and Liabilities Measured at Fair Value on a Recurring Basis The carrying amounts of cash and cash equivalents, accounts receivable, accounts payable and accrued expenses of the Company approximate fair value based on the short maturities of these instruments. The Company evaluates its financial assets and liabilities subject to fair value measurements on a recurring basis to determine the appropriate level of classification as of the end of each reporting period. The following table sets forth the Company’s financial assets and liabilities that were measured at fair value on a recurring basis and the fair value measurement for such assets and liabilities at March 31, 2021 and June 30, 2020, respectively: (Dollars in millions) Basis of Fair Value Measurement March 31, 2021 Total Level 1 Level 2 Level 3 Assets: Marketable securities $ 74.7 $ 74.7 $ — $ — Corporate-owned life insurance policies 30.9 — 30.9 — Interest rate swap 6.3 — 6.3 — Trading securities $ 2.7 $ 2.7 $ — $ — Liabilities: Series A Preferred Stock derivative liability $ 3.7 $ — $ — $ 3.7 June 30, 2020 Assets: Corporate-owned life insurance policies $ 22.9 $ — $ 22.9 $ — Trading securities $ 0.5 $ 0.5 $ — $ — Liabilities: Series A Preferred Stock derivative liability $ 23.6 $ — $ — $ 23.6 Interest rate swap $ 3.7 $ — $ 3.7 $ — The Company offers certain employees the opportunity to participate in a non-qualified supplemental deferred compensation plan. A participant's deferrals, together with the Company's matching credits, are primarily invested in corporate-owned life insurance policies as well a variety of participant-directed stock and bond mutual funds that are classified as trading securities. The Company purchases life insurance policies, with the Company named as beneficiary of the policies, for the purpose of funding the program's liability. Changes in the cash surrender value of the corporate-owned life insurance policies is based upon earnings and changes in the value of the underlying investments. The cash surrender value of the corporate-owned life insurance policies are classified as Level 2 in the fair-value hierarchy, because the inputs are derived principally from observable market data. The fair value of the interest-rate swap agreement is determined at the end of each reporting period based on valuation models that use interest rate yield curves and discount rates as inputs. The discount rates are based on U.S. deposit or U.S. Treasury rates. The significant inputs used in the valuation models are readily available in public markets or can be derived from observable market transactions, and the valuation is therefore classified as Level 2 in the fair-value hierarchy. The estimated fair value of the Series A Preferred Stock derivative is 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 credit spread. The estimated fair value of the Series A Preferred Stock derivative liability is classified as Level 3 in the fair-value hierarchy due to the significant management judgment required to make the assumptions underlying the calculation of value. The following table sets forth a summary of changes in the estimated fair value of the Series A Preferred Stock derivative liability from June 30, 2020 to March 31, 2021: (Dollars in millions) Fair Value Measurements of Balance at June 30, 2020 $ 23.6 Change in estimated fair value of Series A Preferred Stock derivative liability (16.4) Settlement of derivative liability upon Partial Conversion (3.5) Balance at March 31, 2021 $ 3.7 Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis Long-lived assets, goodwill, and other intangible assets are subject to non-recurring fair value measurement for the evaluation of potential impairment. Other than the fair value estimates disclosed in Note 3, Business Combinations and Divestitures, |
Income Taxes
Income Taxes | 9 Months Ended |
Mar. 31, 2021 | |
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 due to changes in relative amounts of U.S. and non-U.S. pretax income, the tax impact of special items, and other discrete tax items. Discrete items include, but are not limited to, changes in foreign statutory tax rates, the amortization of certain assets, changes in the Company’s reserve for uncertain tax positions, 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, and the United Kingdom. The Company is no longer subject to examinations by the relevant tax authorities for years prior to fiscal year 2009. The Company is presently under audit in select jurisdictions in the United States and in Europe, but no material impact is expected to the financial results once these audits are completed. ASC 740 includes guidance on the accounting for uncertain income tax positions recognized in our tax filings. 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, 2021 and June 30, 2020, the Company had an aggregate of $6.0 million and $5.6 million, respectively, of reserves against uncertain tax positions (including accrued interest and penalties). The increase to unrecognized tax benefits is primarily driven by additional audit experience relating to our international tax filings, partially offset by the settlement of an income tax audit that occurred in the three months ended September 30, 2020. 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, 2021 of $85.3 million relative to earnings before income taxes of $317.1 million. The Company recorded a provision for income taxes for the three months ended March 31, 2020 of $8.8 million relative to earnings before income taxes of $29.7 million. The increased income tax provision for the current period was largely the result of an increase in pretax income across several jurisdictions and a $57.4 million income tax charge on the divestiture of the Blow-Fill-Seal Business during the quarter. This was partially offset by an increase in discrete benefit items, including certain equity compensation deductions. The provision for income taxes was also impacted by the geographic distribution of our pretax income resulting from our business mix, changes in the tax impact of permanent differences, restructuring, special items, and other discrete tax items that may have unique tax implications depending on the nature of the item. The Company recorded a provision for income taxes for the nine months ended March 31, 2021 of $90.9 million relative to earnings before income taxes of $493.5 million. The Company recorded a provision for income taxes for the nine months ended March 31, 2020 of $14.9 million relative to earnings before income taxes of $81.4 million. The increased income tax provision for the current nine-month period over the prior-year period was largely the result of an increase in pretax income and a $57.4 million income tax charge on the divestiture of the Blow-Fill-Seal Business during the three months ended March 31, 2021. This increase was partially offset by a $22.2 million income tax benefit for U.S. foreign tax credits resulting from an amendment to a prior-year return recognized in the quarter-ended September 30, 2020 and certain equity compensation deductions. The provision for income taxes was also impacted by the geographic distribution of the Company's pretax income, the tax impact of permanent differences, restructuring, special items, and other discrete tax items that 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, 2021 | |
Retirement Benefits [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) 2021 2020 2021 2020 Components of net periodic benefit cost: Selling, general, and administrative expenses: Service cost $ 1.0 $ 0.9 $ 3.0 $ 2.3 Other expense, net: Interest cost 1.1 0.7 3.2 4.2 Expected return on plan assets (2.6) (2.5) (7.5) (7.8) Amortization (1) 0.8 2.6 2.2 4.1 Net amount recognized $ 0.3 $ 1.7 $ 0.9 $ 2.8 (1) Amount represents the amortization of unrecognized actuarial losses. As previously disclosed, the Company notified the trustees of a multi-employer pension plan of its withdrawal from participation in such plan in fiscal 2012. The actuarial review process administered by the plan trustees ended in fiscal 2015. The liability reported reflects the present value of the Company’s expected future long-term obligations. The estimated discounted value of the projected contributions related to such plans was $38.5 million and $38.6 million as of March 31, 2021 and June 30, 2020, respectively, and is included within pension liability on the consolidated balance sheets. The annual cash impact associated with the Company’s obligations in such plan is approximately $1.7 million per year. |
Equity and Accumulated Other Co
Equity and Accumulated Other Comprehensive Income (Loss) | 9 Months Ended |
Mar. 31, 2021 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Equity, Redeemable Preferred Stock and Accumulated Other Comprehensive Loss | EQUITY, REDEEMABLE PREFERRED STOCK AND ACCUMULATED OTHER COMPREHENSIVE LOSS Description of Capital Stock The Company is authorized to issue 1,000,000,000 shares of its Common Stock and 100,000,000 shares of preferred stock, par value $0.01 per share. In accordance with the Company’s amended and restated certificate of incorporation, each share of Common Stock has one vote, and the Common Stock votes together as a single class. Recent Public Offerings of its Common Stock On June 15, 2020, the Company completed a public offering of its Common Stock (the “June 2020 Equity Offering”), in which the Company sold 7.7 million shares of Common Stock at a price of $70.72 per share, net of underwriting discounts and commissions. The Company obtained total net proceeds from the June 2020 Equity Offering of $547.5 million after the payment of associated offering expenses. The net proceeds of the June 2020 Equity Offering were used to repay $200.0 million of precautionary borrowings from the third quarter of fiscal 2020 under Operating Company's revolving credit facility, with the remainder available for general corporate purposes. On July 10, 2020, the underwriter for the June 2020 Equity Offering exercised its over-allotment option on 1.2 million additional shares, resulting in supplemental net proceeds of $81.8 million from the June 2020 Equity Offering, which was recorded in the three months ended September 30, 2020. 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 pay the consideration for the MaSTherCell acquisition due at its closing, with the remainder available for general corporate purposes. Effect of Restricted Stock Shares of Common Stock outstanding include shares of unvested restricted stock. Unvested restricted stock included in reportable shares outstanding was 0.2 million shares as of March 31, 2021. 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. Redeemable Preferred Stock In 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., 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 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, $39.7 million of which was allocated to the dividend-adjustment feature at its issuance and separately accounted for as a derivative liability. Any change in the fair value of derivative liability during a fiscal quarter is recorded as a non-operating expense 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 and nine months ended March 31, 2021. As described in Note 7, Earnings Per Share, on the Partial Conversion Date, holders of Series A Preferred Stock converted 265,233 shares (approximately 41% of their holdings) and $1.9 million of unpaid accrued dividends into shares of Common Stock. The holders received 20.33 shares of Common Stock for each converted preferred share, resulting in the issuance of 5,392,280 shares of Common Stock. There was no gain or loss recognized upon the Partial Conversion as it occurred in accordance with the terms of the Certificate of Designation. The Company has 384,777 shares of Series A Preferred Stock that remain outstanding at March 31, 2021. As a result of the Partial Conversion, additional paid in capital increased $252.9 million, which includes $3.5 million related to the fair value of the portion of the derivative liability that was settled upon the Partial Conversion and $1.9 million related to an unpaid accrued dividend. See Note 10, Derivative Instruments and Hedging Activities, for detail concerning the change in fair value during the three and nine months ended March 31, 2021. Accumulated Other Comprehensive Loss The components of the changes in the cumulative translation adjustment, derivatives and hedges, minimum pension liability, and marketable securities for the three and nine months ended March 31, 2021 and 2020 are presented below. Three Months Ended Nine Months Ended (Dollars in millions) 2021 2020 2021 2020 Foreign currency translation adjustments: Net investment hedge $ 32.6 $ 3.7 $ (45.2) $ 17.5 Long-term intercompany loans 15.3 (26.9) 38.1 (15.3) Translation adjustments (40.3) (20.5) 54.0 (42.5) Total foreign currency translation adjustment, pretax 7.6 (43.7) 46.9 (40.3) Tax expense (benefit) 7.8 (0.6) (8.2) 2.5 Total foreign currency translation adjustment, net of tax $ (0.2) $ (43.1) $ 55.1 $ (42.8) Net change in derivatives and hedges: Net gain recognized during the period $ 7.2 $ — $ 7.7 $ — Total derivatives and hedges, pretax 7.2 — 7.7 — Tax expense 1.7 — 1.8 — Net change in derivatives and hedges, net of tax $ 5.5 $ — $ 5.9 $ — Net change in minimum pension liability: Net gain recognized during the period $ 0.8 $ 1.2 $ 2.2 $ 4.1 Total pension liability, pretax 0.8 1.2 2.2 4.1 Tax expense 0.2 1.1 0.6 1.0 Net change in minimum pension liability, net of tax $ 0.6 $ 0.1 $ 1.6 $ 3.1 Net change in marketable securities: Net loss recognized during the period $ (0.2) $ — $ (0.2) $ — Total available for sale investment, pretax (0.2) — (0.2) — Tax benefit — — — — Net change in marketable securities, net of tax $ (0.2) $ — $ (0.2) $ — For the three months ended March 31, 2021, the changes in accumulated other comprehensive loss, net of tax by component are as follows: (Dollars in millions) Foreign Exchange Translation Adjustments Pension and Liability Adjustments Derivatives and Hedges Marketable Securities Other Total Balance at December 31, 2020 $ (279.8) $ (46.5) $ (2.2) $ — $ (1.1) $ (329.6) Other comprehensive (loss) income before (0.2) — 5.5 (0.2) — 5.1 Amounts reclassified from accumulated other — 0.6 — — — 0.6 Net current period other comprehensive (loss) income (0.2) 0.6 5.5 (0.2) — 5.7 Balance at March 31, 2021 $ (280.0) $ (45.9) $ 3.3 $ (0.2) $ (1.1) $ (323.9) For the nine months ended March 31, 2021, the changes in accumulated other comprehensive loss, net of tax by component are as follows: (Dollars in millions) Foreign Exchange Translation Adjustments Pension and Liability Adjustments Derivatives and Hedges Marketable Securities Other Total Balance at June 30, 2020 $ (335.1) $ (47.5) $ (2.6) $ — $ (1.1) $ (386.3) Other comprehensive income (loss) before 55.1 — 5.9 (0.2) — 60.8 Amounts reclassified from accumulated other — 1.6 — — — 1.6 Net current period other comprehensive income 55.1 1.6 5.9 (0.2) — 62.4 Balance at March 31, 2021 $ (280.0) $ (45.9) $ 3.3 $ (0.2) $ (1.1) $ (323.9) |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Mar. 31, 2021 | |
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, 2021 | |
Segment Reporting [Abstract] | |
Segment Information | SEGMENT INFORMATION The Company conducts its business within the following operating segments: Biologics, Softgel and Oral Technologies, 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 U.S. 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, 2021 and 2020: (Dollars in millions) Three Months Ended Nine Months Ended 2021 2020 2021 2020 Net revenue: Biologics $ 543.7 $ 250.0 $ 1,324.7 $ 663.8 Softgel and Oral Technologies 243.7 242.3 711.4 770.8 Oral and Specialty Delivery 171.7 181.4 499.9 457.2 Clinical Supply Services 100.0 88.9 286.2 261.4 Inter-segment revenue elimination (5.8) (2.0) (12.4) (6.5) Total net revenue $ 1,053.3 $ 760.6 $ 2,809.8 $ 2,146.7 (Dollars in millions) Three Months Ended Nine Months Ended 2021 2020 2021 2020 Segment EBITDA reconciled to net earnings: Biologics $ 179.9 $ 51.9 $ 421.9 $ 150.7 Softgel and Oral Technologies 59.6 60.1 143.0 171.0 Oral and Specialty Delivery 30.7 56.2 96.3 117.0 Clinical Supply Services 27.1 24.6 77.4 70.2 Sub-Total $ 297.3 $ 192.8 $ 738.6 $ 508.9 Reconciling items to net earnings Unallocated costs (1) 122.6 (63.9) 49.0 (134.6) Depreciation and amortization (75.9) (64.8) (216.0) (187.3) Interest expense, net (26.9) (34.4) (78.1) (105.6) Income tax expense (85.3) (8.8) $ (90.9) (14.9) Net earnings $ 231.8 $ 20.9 $ 402.6 $ 66.5 (1) Unallocated costs include restructuring and special items, stock-based compensation, gain (loss) on sale of subsidiary, 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) 2021 2020 2021 2020 Impairment charges and gain (loss) on sale of assets $ (5.3) $ (0.6) $ (7.7) $ (1.0) Stock-based compensation (8.4) (8.6) (38.5) (35.5) Restructuring and other special items (a) (3.3) (8.9) (22.9) (28.6) Gain (loss) on sale of subsidiary (b) 184.0 — 184.0 (1.1) Other expense, net (c) (24.6) (36.7) (5.1) (37.2) Unallocated corporate costs, net (19.8) (9.1) (60.8) (31.2) Total unallocated costs $ 122.6 $ (63.9) $ 49.0 $ (134.6) (a) Restructuring and other special items for the three months ended March 31, 2021 include transaction and integration costs associated with the Delphi, Acorda, and Skeletal acquisitions, and restructuring costs associated with the closure of the Company's Clinical Supply Services facility in Bolton, U.K. Restructuring and other special items for the nine months ended March 31, 2021 also include transaction and integration costs associated with the Anagni, MaSTherCell, Delphi, Acorda and Skeletal acquisitions and the disposal of a facility in Australia. Restructuring and other special items during the three and nine months ended March 31, 2020 include transaction and integration costs associated with the Company’s cell and gene therapy acquisitions and the disposal of a facility in Australia. (b) Gain on sale of subsidiary for the three and nine months ended March 31, 2021 is affiliated with the sale of the Blow-Fill-Seal Business. Loss on sale of subsidiary for the nine months ended March 31, 2020 is affiliated with the disposal of a facility in Australia. (c) Refer to Note 8, Other expense, net for details of financing charges and foreign currency translation adjustments recorded within other 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: Biologics $ 4,678.4 $ 3,775.0 Softgel and Oral Technologies 1,539.3 1,501.8 Oral and Specialty Delivery 1,217.2 1,247.4 Clinical Supply Services 470.9 451.2 Corporate and eliminations 863.3 801.1 Total assets $ 8,769.1 $ 7,776.5 |
Supplemental Balance Sheet Info
Supplemental Balance Sheet Information | 9 Months Ended |
Mar. 31, 2021 | |
Balance Sheet Related Disclosures [Abstract] | |
Supplemental Balance Sheet Information | SUPPLEMENTAL BALANCE SHEET INFORMATION Supplemental balance sheet information at March 31, 2021 and June 30, 2020 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 $ 376.6 $ 222.6 Work-in-process 204.6 123.2 Total inventories, gross 581.2 345.8 Inventory cost adjustment (53.3) (22.0) Total inventories $ 527.9 $ 323.8 Prepaid expenses and other Prepaid expenses and other consist of the following: (Dollars in millions) March 31, June 30, Prepaid expenses $ 46.6 $ 28.6 Contract assets 177.4 61.4 Spare parts supplies 27.2 23.1 Prepaid income tax 20.6 15.0 Non-U.S. value-added tax 40.0 19.0 Other current assets 37.1 30.8 Total prepaid expenses and other $ 348.9 $ 177.9 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 $ 1,362.1 $ 1,250.9 Machinery and equipment 1,380.4 1,233.6 Furniture and fixtures 22.9 20.9 Construction in progress 715.0 440.0 Property, plant, and equipment, at cost 3,480.4 2,945.4 Accumulated depreciation (1,121.6) (1,044.6) Property, plant, and equipment, net $ 2,358.8 $ 1,900.8 Depreciation expense was $52.6 million and $146.7 million for the three and nine months ended March 31, 2021, respectively, and $41.8 million and $121.0 million, for the three and nine months ended March 31, 2020, respectively. Depreciation expense includes amortization of assets related to finance leases. The Company charges repairs and maintenance costs to expense as incurred. The Company capitalized interest cost of $5.0 million and $15.2 million for the three and nine months ended March 31, 2021, respectively. Other accrued liabilities Other accrued liabilities consist of the following: (Dollars in millions) March 31, June 30, Accrued employee-related expenses $ 175.4 $ 140.8 Operating lease liabilities 14.5 14.6 Restructuring accrual 5.6 2.8 Accrued interest 9.9 29.1 Contract liability 289.0 191.0 Accrued income tax 59.9 4.5 Other 145.6 116.5 Total other accrued liabilities $ 699.9 $ 499.3 Other long-term assets Other long-term assets consist of the following: (Dollars in millions) March 31, June 30, Operating lease right-of-use assets $ 83.6 $ 101.4 Note receivable 47.4 — Pension assets 43.7 32.1 Corporate-owned life insurance policies 30.9 22.9 Interest rate swap 6.3 — Other 30.0 17.6 Total other long-term assets $ 241.9 $ 174.0 |
Basis of Presentation and Sum_2
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Mar. 31, 2021 | |
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 ( “U.S. 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 U.S. 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, 2021 are not necessarily indicative of the results that may be expected for the year ending June 30, 2021. The consolidated balance sheet at June 30, 2020 has been derived from the audited consolidated financial statements at that date but does not include all of the information and footnotes required by U.S. 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, 2020 filed with the Securities and Exchange Commission. |
Reclassification, Policy | Reclassifications Certain prior period balances have been reclassified to conform to the current period presentation. These reclassifications did not have a material impact on the consolidated statements of operations, consolidated balance sheets, consolidated statements of cash flows, or notes to the consolidated financial statements. |
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 utilizing period-end exchange rates. Since July 1, 2018, the Company has accounted for its Argentine operations as highly inflationary. |
Allowance for Credit Losses | Allowance for Credit Losses Trade receivables and contract assets are primarily comprised of amounts owed to the Company through its operating activities and are presented net of an allowance that includes an assessment of expected credit losses. The Company determines its allowance methodology by considering various factors, including the Company’s previous loss history, significant changes in a geographic location's economic conditions, and the current and anticipated future condition of the general economy and the industries in which the Company's customers operate. To the extent that any individual payer is identified whose credit quality has deteriorated, the Company establishes allowances based on the individual risk characteristics of such customer. The Company makes concerted efforts to collect all outstanding balances due from customers; however, trade receivables and contract assets are written off against the allowance when the related balances are no longer deemed collectible. |
Marketable Securities, Policy | Marketable Securities The Company classifies its liquid debt investments with original maturities greater than ninety days as marketable securities. The Company invests in highly rated corporate debt securities, with the primary objective of minimizing the potential risk of principal loss. The Company’s investment policy generally requires securities to be investment grade and limits the amount of credit exposure to any single issuer. The Company regularly reviews its investments and utilizes quantitative and qualitative evidence to evaluate potential impairments. If the cost of an investment exceeds its fair value, the Company evaluates, among other factors, general market conditions, the credit quality of debt instrument issuers, and the duration and extent to which the cost of the investment exceeds its fair value. |
Research and Development Costs | Research and Development Costs The Company expenses research and development costs as incurred. Research and development costs amounted to $3.4 million and $5.9 million for the three months ended March 31, 2021 and 2020, respectively. Research and development costs amounted to $15.0 million and $15.4 million for the nine months ended March 31, 2021 and 2020, respectively. |
Recent Financial Accounting Standards | Recent Financial Accounting Standards Recently Adopted Accounting Standards In August 2018, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“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 Company adopted the guidance on July 1, 2020. The guidance did not have a material impact on the Company’s financial condition or results of operations. 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 Accounting Standards Codification ( “ ASC ”) 820, Fair Value Measurement . The guidance eliminates certain disclosure requirements that are no longer considered cost beneficial and adds new disclosure requirements for Level 3 fair value measurements. The Company adopted the guidance on July 1, 2020. The guidance did not have a material impact on the Company’s financial condition or results of operations. 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”). CECL requires earlier recognition of credit losses on financial assets, while also providing additional transparency about credit risk. The CECL model utilizes a lifetime expected credit loss measurement objective for the recognition of credit losses for financial assets at the time they are originated or acquired. The expected credit losses are adjusted each period for changes in expected lifetime credit losses. This model replaces the multiple existing impairment models in current U.S. GAAP, which generally require that a loss be incurred before it is recognized. The new standard applies to receivables arising from revenue transactions such as contract assets and accounts receivables. The Company adopted the amended guidance using a modified retrospective approach on July 1, 2020. The amended guidance did not have a material impact on the Company’s financial condition or results of operations. New Accounting Standards Not Adopted as of March 31, 2021 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 intra-period 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. |
Revenue from Contract with Cust
Revenue from Contract with Customer (Policies) | 9 Months Ended |
Mar. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contract with Customer [Policy Text Block] | REVENUE RECOGNITION The Company recognizes revenue in accordance with ASC 606, Revenue from Contracts with Customers . 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, 2021 and March 31, 2020, by type of activity and reporting segment (in millions): Three Months Ended March 31, 2021 Biologics Softgel and Oral Technologies Oral and Specialty Delivery Clinical Supply Services Total Manufacturing & commercial product supply $ 147.5 $ 212.0 $ 118.3 $ — $ 477.8 Development services 396.2 31.7 53.4 — 481.3 Clinical supply services — — — 100.0 100.0 Total $ 543.7 $ 243.7 $ 171.7 $ 100.0 $ 1,059.1 Inter-segment revenue elimination (5.8) Combined net revenue $ 1,053.3 Three Months Ended March 31, 2020 Biologics Softgel and Oral Technologies Oral and Specialty Delivery Clinical Supply Services Total Manufacturing & commercial product supply $ 85.2 $ 217.6 $ 127.2 $ — $ 430.0 Development services 164.8 24.7 54.2 — 243.7 Clinical supply services — — — 88.9 88.9 Total $ 250.0 $ 242.3 $ 181.4 $ 88.9 $ 762.6 Inter-segment revenue elimination (2.0) Combined net revenue $ 760.6 Nine Months Ended March 31, 2021 Biologics Softgel and Oral Technologies Oral and Specialty Delivery Clinical Supply Services Total Manufacturing & commercial product supply $ 361.8 $ 616.4 $ 335.3 $ — $ 1,313.5 Development services 962.9 95.0 164.6 — 1,222.5 Clinical supply services — — — 286.2 286.2 Total $ 1,324.7 $ 711.4 $ 499.9 $ 286.2 $ 2,822.2 Inter-segment revenue elimination (12.4) Combined net revenue $ 2,809.8 Nine Months Ended March 31, 2020 Biologics Softgel and Oral Technologies Oral and Specialty Delivery Clinical Supply Services Total Manufacturing & commercial product supply $ 229.6 $ 701.5 $ 294.5 $ — $ 1,225.6 Development services 434.2 69.3 162.7 — 666.2 Clinical supply services — — — 261.4 261.4 Total $ 663.8 $ 770.8 $ 457.2 $ 261.4 $ 2,153.2 Inter-segment revenue elimination (6.5) Combined net revenue $ 2,146.7 The following table allocates revenue by the location where the goods were made or the service performed: Three Months Ended Nine Months Ended (Dollars in millions) 2021 2020 2021 2020 United States $ 670.0 $ 438.9 $ 1,722.2 $ 1,215.9 Europe 344.9 258.7 954.8 690.1 Other 61.9 83.5 200.6 299.8 Elimination of revenue attributable to multiple locations (23.5) (20.5) (67.8) (59.1) Total $ 1,053.3 $ 760.6 $ 2,809.8 $ 2,146.7 Contract Liabilities Contract liabilities relate to cash consideration that the Company receives in advance of satisfying the related performance obligations. The contract liabilities balance (current and non-current) as of March 31, 2021 and June 30, 2020 are as follows: (Dollars in millions) Balance at June 30, 2020 $ 218.4 Balance at March 31, 2021 $ 300.6 Revenue recognized in the period from July 1 through March 31, 2021: Amounts included in contract liability at the beginning of the period $ 147.5 Contract Assets Contract assets primarily relate to the Company's conditional right to receive consideration for services that have been performed for a customer as of March 31, 2021 relating to the Company's development services but had not yet been invoiced as of March 31, 2021. Contract assets are transferred to trade receivables, net when the Company’s right to receive the consideration becomes unconditional. Contract assets totaled $177.4 million and $61.4 million as of March 31, 2021 and June 30, 2020, respectively. Contract assets are included in prepaid expenses and other in the consolidated balance sheets. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 9 Months Ended |
Mar. 31, 2021 | |
Revenue Recognition and Deferred Revenue [Abstract] | |
Contractual Liabilities | The contract liabilities balance (current and non-current) as of March 31, 2021 and June 30, 2020 are as follows: (Dollars in millions) Balance at June 30, 2020 $ 218.4 Balance at March 31, 2021 $ 300.6 Revenue recognized in the period from July 1 through March 31, 2021: Amounts included in contract liability at the beginning of the period $ 147.5 |
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: Three Months Ended Nine Months Ended (Dollars in millions) 2021 2020 2021 2020 United States $ 670.0 $ 438.9 $ 1,722.2 $ 1,215.9 Europe 344.9 258.7 954.8 690.1 Other 61.9 83.5 200.6 299.8 Elimination of revenue attributable to multiple locations (23.5) (20.5) (67.8) (59.1) Total $ 1,053.3 $ 760.6 $ 2,809.8 $ 2,146.7 |
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, 2021 and March 31, 2020, by type of activity and reporting segment (in millions): Three Months Ended March 31, 2021 Biologics Softgel and Oral Technologies Oral and Specialty Delivery Clinical Supply Services Total Manufacturing & commercial product supply $ 147.5 $ 212.0 $ 118.3 $ — $ 477.8 Development services 396.2 31.7 53.4 — 481.3 Clinical supply services — — — 100.0 100.0 Total $ 543.7 $ 243.7 $ 171.7 $ 100.0 $ 1,059.1 Inter-segment revenue elimination (5.8) Combined net revenue $ 1,053.3 Three Months Ended March 31, 2020 Biologics Softgel and Oral Technologies Oral and Specialty Delivery Clinical Supply Services Total Manufacturing & commercial product supply $ 85.2 $ 217.6 $ 127.2 $ — $ 430.0 Development services 164.8 24.7 54.2 — 243.7 Clinical supply services — — — 88.9 88.9 Total $ 250.0 $ 242.3 $ 181.4 $ 88.9 $ 762.6 Inter-segment revenue elimination (2.0) Combined net revenue $ 760.6 Nine Months Ended March 31, 2021 Biologics Softgel and Oral Technologies Oral and Specialty Delivery Clinical Supply Services Total Manufacturing & commercial product supply $ 361.8 $ 616.4 $ 335.3 $ — $ 1,313.5 Development services 962.9 95.0 164.6 — 1,222.5 Clinical supply services — — — 286.2 286.2 Total $ 1,324.7 $ 711.4 $ 499.9 $ 286.2 $ 2,822.2 Inter-segment revenue elimination (12.4) Combined net revenue $ 2,809.8 Nine Months Ended March 31, 2020 Biologics Softgel and Oral Technologies Oral and Specialty Delivery Clinical Supply Services Total Manufacturing & commercial product supply $ 229.6 $ 701.5 $ 294.5 $ — $ 1,225.6 Development services 434.2 69.3 162.7 — 666.2 Clinical supply services — — — 261.4 261.4 Total $ 663.8 $ 770.8 $ 457.2 $ 261.4 $ 2,153.2 Inter-segment revenue elimination (6.5) Combined net revenue $ 2,146.7 |
Business Combinations (Table)
Business Combinations (Table) | 9 Months Ended |
Mar. 31, 2021 | |
Business Acquisition [Line Items] | |
Disposal Groups, Including Discontinued Operations | The Company valued the total consideration received from divestiture of the Blow-Fill-Seal Business as follows: (Dollars in millions) Fair value of consideration received Cash, gross $ 300.0 Note receivable (1) 47.4 Contingent consideration (2) — Other (3) (13.2) Total $ 334.2 (1) The note receivable, which provides for interest at a rate of 5.0% paid in kind, had an estimated fair value of $47.4 million at March 31, 2021, which is the $50.0 million aggregate principal amount less a $2.6 million discount determined using a discounted cash flow model with the market interest rate as a significant input. (2) The Company determined that the estimated fair value of the contingent consideration from the sale of the Blow-Fill-Seal Business at March 31, 2021 is zero, and therefore, no contingent consideration was recorded as a result of the divestiture of the Blow-Fill-Seal Business. If any contingent consideration is subsequently received, it will be recorded in the period in which it is received. The Company has elected an accounting policy to recognize increases in the carrying amount of the contingent consideration asset using the gain contingency guidance in ASC 450, Contingencies . |
Goodwill (Tables)
Goodwill (Tables) | 9 Months Ended |
Mar. 31, 2021 | |
Goodwill Disclosure [Abstract] | |
Goodwill - Rollforward | The following table summarizes the changes between June 30, 2020 and March 31, 2021 in the carrying amount of goodwill in total and by reporting segment: (Dollars in millions) Biologics Softgel and Oral Technologies Oral and Specialty Delivery Clinical Supply Services Total Balance at June 30, 2020 $ 1,462.2 $ 505.5 $ 354.7 $ 148.2 $ 2,470.6 Additions (1) 58.7 — 1.8 — 60.5 Divestitures (2) — — (55.8) — (55.8) Foreign currency translation adjustments 12.2 7.5 13.0 7.0 39.7 Balance at March 31, 2021 $ 1,533.1 $ 513.0 $ 313.7 $ 155.2 $ 2,515.0 (1) The addition to goodwill in the Biologics reporting segment relates to the Delphi and Skeletal acquisitions. The addition to goodwill in the Oral and Specialty Delivery reporting segment relates to the Acorda acquisition. For further details, see Note 3, Business Combinations and Divestitures . (2) Represents goodwill associated with the divestiture of the Company's Blow-Fill-Seal Business. 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, 2021 | |
Intangible Assets Disclosure [Abstract] | |
Other Intangible Assets Subject to Amortization | The details of other intangibles as of March 31, 2021 and June 30, 2020 are as follows: (Dollars in millions) Weighted Average Life Gross Carrying Value Accumulated Amortization Net Carrying Value March 31, 2021 Amortized intangibles: Core technology 19 years $ 139.9 $ (91.9) $ 48.0 Customer relationships 14 years 1,015.1 (286.4) 728.7 Product relationships 11 years 280.2 (233.8) 46.4 Other 5 years 19.0 (7.3) 11.7 Total other intangibles $ 1,454.2 $ (619.4) $ 834.8 (Dollars in millions) Weighted Average Life Gross Carrying Value Accumulated Amortization Net Carrying Value June 30, 2020 Amortized intangibles: Core technology 19 years $ 134.5 $ (83.0) $ 51.5 Customer relationships 14 years 1,021.3 (248.0) 773.3 Product relationships 11 years 270.4 (217.5) 52.9 Other 5 years 15.5 (4.5) 11.0 Total other intangibles $ 1,441.7 $ (553.0) $ 888.7 |
Future Amortization Expense | Future amortization expense related to other intangible assets for the next five fiscal years is estimated to be: (Dollars in millions) Remainder 2022 2023 2024 2025 2026 Amortization expense $ 23.2 $ 92.1 $ 91.4 $ 90.7 $ 89.7 $ 82.1 |
Long-Term Obligations and Oth_2
Long-Term Obligations and Other Short-Term Borrowings (Tables) | 9 Months Ended |
Mar. 31, 2021 | |
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, 2021 and June 30, 2020: (Dollars in millions) Maturity March 31, 2021 June 30, Senior secured credit facilities Term loan facility B-2 May 2026 $ — $ 938.1 Term loan facility B-3 February 2028 1,000.0 — 4.875% senior notes due 2026 January 2026 — 450.0 5.000% senior notes due 2027 July 2027 500.0 500.0 2.375% Euro senior notes due 2028 (1) March 2028 974.0 925.6 3.125% senior notes due 2029 February 2029 550.0 — Deferred purchase consideration October 2021 49.1 97.5 Finance lease obligations 2021 to 2044 185.0 142.2 Other obligations 2021 to 2024 2.6 1.4 Debt issuance costs (37.5) (36.8) Total debt $ 3,223.2 $ 3,018.0 Less: current portion of long-term obligations and other short-term 73.6 72.9 Long-term obligations, less current portion $ 3,149.6 $ 2,945.1 (1) The increase in euro-denominated debt is primarily due to large fluctuations in foreign currency exchange rates. |
Fair Value Disclosures [Abstract] | |
Schedule Of Carrying And Fair Value Of Financial Instruments Table | The carrying amounts and the estimated fair values of the Company’s principal categories of debt as of March 31, 2021 and June 30, 2020 are as follows: March 31, 2021 June 30, 2020 (Dollars in millions) Fair Value Measurement Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value 4.875% senior notes due 2026 Level 2 $ — $ — $ 450.0 $ 463.6 5.000% senior notes due 2027 Level 2 500.0 534.3 500.0 537.9 2.375% Euro senior notes due 2028 Level 2 974.0 966.0 925.6 844.1 3.125% senior notes due 2029 Level 2 550.0 514.2 — — Senior secured credit facilities & other Level 2 1,236.7 1,183.0 1,179.2 1,160.1 Subtotal $ 3,260.7 $ 3,197.5 $ 3,054.8 $ 3,005.7 Debt issuance costs (37.5) — (36.8) — Total debt $ 3,223.2 $ 3,197.5 $ 3,018.0 $ 3,005.7 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Mar. 31, 2021 | |
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, 2021 and 2020, respectively, are as follows: Three Months Ended Nine Months Ended (In millions except per share data) 2021 2020 2021 2020 Net earnings $ 231.8 $ 20.9 $ 402.6 $ 66.5 Less: Net earnings attributable to preferred shareholders (14.7) (9.1) (42.5) (27.8) Net earnings attributable to common shareholders $ 217.1 $ 11.8 $ 360.1 $ 38.7 Weighted average shares outstanding - basic 170.5 151.3 167.2 147.7 Weighted average dilutive securities issuable - stock plans 2.0 1.8 2.3 1.8 Weighted average shares outstanding - diluted 172.5 153.1 169.5 149.5 Earnings per share: Basic $ 1.27 $ 0.08 $ 2.15 $ 0.26 Diluted $ 1.26 $ 0.08 $ 2.12 $ 0.26 |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The diluted earnings per share calculations did not include the shares of Common Stock associated with the Series A Preferred Stock or the following outstanding equity grants due to their antidilutive effect: Three Months Ended Nine Months Ended (share counts in millions) 2021 2020 2021 2020 Stock options — 0.3 0.2 0.4 Restricted stock units — 0.1 0.1 0.1 Performance stock units — 0.1 — 0.1 Series A Preferred Stock 7.7 13.1 10.6 13.1 |
Other Income and Expense (Table
Other Income and Expense (Tables) | 9 Months Ended |
Mar. 31, 2021 | |
Other Income and Expenses [Abstract] | |
Schedule of Other Nonoperating Income (Expense) | The components of other expense, net for the three and nine months ended March 31, 2021 and 2020 are as follows: Three Months Ended Nine Months Ended (Dollars in millions) 2021 2020 2021 2020 Other (income) expense, net Debt refinancing costs (1) 17.2 16.0 17.2 16.1 Foreign currency (gains) losses (2) 6.9 (5.3) 6.1 (1.7) Other (3) 0.5 26.0 (18.2) 22.8 Total other expense, net $ 24.6 $ 36.7 $ 5.1 $ 37.2 (1) Debt refinancing costs for the three and nine months ended March 31, 2021 includes (a) a write-off of $4.4 million of previously capitalized financing charges related to the Company’s repaid Term B-2 Loans and the 2026 Notes, (b) $1.8 million of financing charges related to the Company’s Term B-3 Loans, and (c) a $11.0 million premium on early redemption of the 2026 Notes. Debt refinancing costs for the three and nine months ended March 31, 2020 includes (x) a write-off of $6.0 million of previously capitalized financing charges related to the Company’s repaid euro-denominated term loans under its senior secured credit facilities and the Company’s redeemed euro-denominated senior notes and (y) a $10.0 million premium on early redemption of the euro notes. (2) Foreign currency remeasurement gains include both cash and non-cash transactions. (3) Other, for the three and nine months ended March 31, 2 021 includes, in part, total realized and unrealized gain of $0.4 million and $16.4 million, respectively, related to the fair value of the derivative liability associated with the Series A Preferred Stock. Other, for the three and nine months ended March 31, 2020 includes, in part, total unrealized losses of $26.3 million and $24.9 million, respectively, related to the fair value of t he 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, 2021 | |
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, 2021 and 2020. Three Months Ended Nine Months Ended (Dollars in millions) 2021 2020 2021 2020 Unrealized foreign exchange gain (loss) within other comprehensive income $ 32.6 $ 3.7 $ (45.2) $ 17.5 Unrealized foreign exchange gain (loss) within statement of operations $ 1.1 $ 1.9 $ (3.3) $ 7.7 |
Schedule of Interest Rate Derivatives | A summary of the estimated fair value of the interest rate swap reported in the consolidated balance sheets is stated in the table below: March 31, 2021 June 30, 2020 (Dollars in millions) Balance Sheet Classification Estimated Fair Value Balance Sheet Classification Estimated Fair Value Interest rate swap Other long-term assets $ 6.3 Other liabilities $ 3.7 |
Fair Value Measures and Discl_2
Fair Value Measures and Disclosures (Tables) | 9 Months Ended |
Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The following table sets forth the Company’s financial assets and liabilities that were measured at fair value on a recurring basis and the fair value measurement for such assets and liabilities at March 31, 2021 and June 30, 2020, respectively: (Dollars in millions) Basis of Fair Value Measurement March 31, 2021 Total Level 1 Level 2 Level 3 Assets: Marketable securities $ 74.7 $ 74.7 $ — $ — Corporate-owned life insurance policies 30.9 — 30.9 — Interest rate swap 6.3 — 6.3 — Trading securities $ 2.7 $ 2.7 $ — $ — Liabilities: Series A Preferred Stock derivative liability $ 3.7 $ — $ — $ 3.7 June 30, 2020 Assets: Corporate-owned life insurance policies $ 22.9 $ — $ 22.9 $ — Trading securities $ 0.5 $ 0.5 $ — $ — Liabilities: Series A Preferred Stock derivative liability $ 23.6 $ — $ — $ 23.6 Interest rate swap $ 3.7 $ — $ 3.7 $ — |
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 Series A Preferred Stock derivative liability from June 30, 2020 to March 31, 2021: (Dollars in millions) Fair Value Measurements of Balance at June 30, 2020 $ 23.6 Change in estimated fair value of Series A Preferred Stock derivative liability (16.4) Settlement of derivative liability upon Partial Conversion (3.5) Balance at March 31, 2021 $ 3.7 |
Employee Retirement Benefit P_2
Employee Retirement Benefit Plans (Tables) | 9 Months Ended |
Mar. 31, 2021 | |
Retirement Benefits [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) 2021 2020 2021 2020 Components of net periodic benefit cost: Selling, general, and administrative expenses: Service cost $ 1.0 $ 0.9 $ 3.0 $ 2.3 Other expense, net: Interest cost 1.1 0.7 3.2 4.2 Expected return on plan assets (2.6) (2.5) (7.5) (7.8) Amortization (1) 0.8 2.6 2.2 4.1 Net amount recognized $ 0.3 $ 1.7 $ 0.9 $ 2.8 (1) Amount represents the amortization of unrecognized actuarial losses. |
Equity and Accumulated Other _2
Equity and Accumulated Other Comprehensive Income (Loss) (Tables) | 9 Months Ended |
Mar. 31, 2021 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of Comprehensive Income (Loss) | Accumulated Other Comprehensive Loss The components of the changes in the cumulative translation adjustment, derivatives and hedges, minimum pension liability, and marketable securities for the three and nine months ended March 31, 2021 and 2020 are presented below. Three Months Ended Nine Months Ended (Dollars in millions) 2021 2020 2021 2020 Foreign currency translation adjustments: Net investment hedge $ 32.6 $ 3.7 $ (45.2) $ 17.5 Long-term intercompany loans 15.3 (26.9) 38.1 (15.3) Translation adjustments (40.3) (20.5) 54.0 (42.5) Total foreign currency translation adjustment, pretax 7.6 (43.7) 46.9 (40.3) Tax expense (benefit) 7.8 (0.6) (8.2) 2.5 Total foreign currency translation adjustment, net of tax $ (0.2) $ (43.1) $ 55.1 $ (42.8) Net change in derivatives and hedges: Net gain recognized during the period $ 7.2 $ — $ 7.7 $ — Total derivatives and hedges, pretax 7.2 — 7.7 — Tax expense 1.7 — 1.8 — Net change in derivatives and hedges, net of tax $ 5.5 $ — $ 5.9 $ — Net change in minimum pension liability: Net gain recognized during the period $ 0.8 $ 1.2 $ 2.2 $ 4.1 Total pension liability, pretax 0.8 1.2 2.2 4.1 Tax expense 0.2 1.1 0.6 1.0 Net change in minimum pension liability, net of tax $ 0.6 $ 0.1 $ 1.6 $ 3.1 Net change in marketable securities: Net loss recognized during the period $ (0.2) $ — $ (0.2) $ — Total available for sale investment, pretax (0.2) — (0.2) — Tax benefit — — — — Net change in marketable securities, net of tax $ (0.2) $ — $ (0.2) $ — |
Schedule of Accumulated Other Comprehensive Income (Loss) | For the three months ended March 31, 2021, the changes in accumulated other comprehensive loss, net of tax by component are as follows: (Dollars in millions) Foreign Exchange Translation Adjustments Pension and Liability Adjustments Derivatives and Hedges Marketable Securities Other Total Balance at December 31, 2020 $ (279.8) $ (46.5) $ (2.2) $ — $ (1.1) $ (329.6) Other comprehensive (loss) income before (0.2) — 5.5 (0.2) — 5.1 Amounts reclassified from accumulated other — 0.6 — — — 0.6 Net current period other comprehensive (loss) income (0.2) 0.6 5.5 (0.2) — 5.7 Balance at March 31, 2021 $ (280.0) $ (45.9) $ 3.3 $ (0.2) $ (1.1) $ (323.9) For the nine months ended March 31, 2021, the changes in accumulated other comprehensive loss, net of tax by component are as follows: (Dollars in millions) Foreign Exchange Translation Adjustments Pension and Liability Adjustments Derivatives and Hedges Marketable Securities Other Total Balance at June 30, 2020 $ (335.1) $ (47.5) $ (2.6) $ — $ (1.1) $ (386.3) Other comprehensive income (loss) before 55.1 — 5.9 (0.2) — 60.8 Amounts reclassified from accumulated other — 1.6 — — — 1.6 Net current period other comprehensive income 55.1 1.6 5.9 (0.2) — 62.4 Balance at March 31, 2021 $ (280.0) $ (45.9) $ 3.3 $ (0.2) $ (1.1) $ (323.9) |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Mar. 31, 2021 | |
Segment Reporting [Abstract] | |
Net Revenue by Segment | (Dollars in millions) Three Months Ended Nine Months Ended 2021 2020 2021 2020 Net revenue: Biologics $ 543.7 $ 250.0 $ 1,324.7 $ 663.8 Softgel and Oral Technologies 243.7 242.3 711.4 770.8 Oral and Specialty Delivery 171.7 181.4 499.9 457.2 Clinical Supply Services 100.0 88.9 286.2 261.4 Inter-segment revenue elimination (5.8) (2.0) (12.4) (6.5) Total net revenue $ 1,053.3 $ 760.6 $ 2,809.8 $ 2,146.7 |
Reconciliation of Earnings/(Loss) from Continuing Operations to EBITDA | (Dollars in millions) Three Months Ended Nine Months Ended 2021 2020 2021 2020 Segment EBITDA reconciled to net earnings: Biologics $ 179.9 $ 51.9 $ 421.9 $ 150.7 Softgel and Oral Technologies 59.6 60.1 143.0 171.0 Oral and Specialty Delivery 30.7 56.2 96.3 117.0 Clinical Supply Services 27.1 24.6 77.4 70.2 Sub-Total $ 297.3 $ 192.8 $ 738.6 $ 508.9 Reconciling items to net earnings Unallocated costs (1) 122.6 (63.9) 49.0 (134.6) Depreciation and amortization (75.9) (64.8) (216.0) (187.3) Interest expense, net (26.9) (34.4) (78.1) (105.6) Income tax expense (85.3) (8.8) $ (90.9) (14.9) Net earnings $ 231.8 $ 20.9 $ 402.6 $ 66.5 (1) Unallocated costs include restructuring and special items, stock-based compensation, gain (loss) on sale of subsidiary, 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) 2021 2020 2021 2020 Impairment charges and gain (loss) on sale of assets $ (5.3) $ (0.6) $ (7.7) $ (1.0) Stock-based compensation (8.4) (8.6) (38.5) (35.5) Restructuring and other special items (a) (3.3) (8.9) (22.9) (28.6) Gain (loss) on sale of subsidiary (b) 184.0 — 184.0 (1.1) Other expense, net (c) (24.6) (36.7) (5.1) (37.2) Unallocated corporate costs, net (19.8) (9.1) (60.8) (31.2) Total unallocated costs $ 122.6 $ (63.9) $ 49.0 $ (134.6) (a) Restructuring and other special items for the three months ended March 31, 2021 include transaction and integration costs associated with the Delphi, Acorda, and Skeletal acquisitions, and restructuring costs associated with the closure of the Company's Clinical Supply Services facility in Bolton, U.K. Restructuring and other special items for the nine months ended March 31, 2021 also include transaction and integration costs associated with the Anagni, MaSTherCell, Delphi, Acorda and Skeletal acquisitions and the disposal of a facility in Australia. Restructuring and other special items during the three and nine months ended March 31, 2020 include transaction and integration costs associated with the Company’s cell and gene therapy acquisitions and the disposal of a facility in Australia. (b) Gain on sale of subsidiary for the three and nine months ended March 31, 2021 is affiliated with the sale of the Blow-Fill-Seal Business. Loss on sale of subsidiary for the nine months ended March 31, 2020 is affiliated with the disposal of a facility in Australia. (c) Refer to Note 8, Other expense, net for details of financing charges and foreign currency translation adjustments recorded within other 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: Biologics $ 4,678.4 $ 3,775.0 Softgel and Oral Technologies 1,539.3 1,501.8 Oral and Specialty Delivery 1,217.2 1,247.4 Clinical Supply Services 470.9 451.2 Corporate and eliminations 863.3 801.1 Total assets $ 8,769.1 $ 7,776.5 |
Supplemental Balance Sheet In_2
Supplemental Balance Sheet Information (Tables) | 9 Months Ended |
Mar. 31, 2021 | |
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 $ 376.6 $ 222.6 Work-in-process 204.6 123.2 Total inventories, gross 581.2 345.8 Inventory cost adjustment (53.3) (22.0) Total inventories $ 527.9 $ 323.8 |
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 $ 46.6 $ 28.6 Contract assets 177.4 61.4 Spare parts supplies 27.2 23.1 Prepaid income tax 20.6 15.0 Non-U.S. value-added tax 40.0 19.0 Other current assets 37.1 30.8 Total prepaid expenses and other $ 348.9 $ 177.9 |
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 $ 1,362.1 $ 1,250.9 Machinery and equipment 1,380.4 1,233.6 Furniture and fixtures 22.9 20.9 Construction in progress 715.0 440.0 Property, plant, and equipment, at cost 3,480.4 2,945.4 Accumulated depreciation (1,121.6) (1,044.6) Property, plant, and equipment, net $ 2,358.8 $ 1,900.8 |
Other Accrued Liabilities | Other accrued liabilities Other accrued liabilities consist of the following: (Dollars in millions) March 31, June 30, Accrued employee-related expenses $ 175.4 $ 140.8 Operating lease liabilities 14.5 14.6 Restructuring accrual 5.6 2.8 Accrued interest 9.9 29.1 Contract liability 289.0 191.0 Accrued income tax 59.9 4.5 Other 145.6 116.5 Total other accrued liabilities $ 699.9 $ 499.3 |
Other Long-Term Assets | Other long-term assets Other long-term assets consist of the following: (Dollars in millions) March 31, June 30, Operating lease right-of-use assets $ 83.6 $ 101.4 Note receivable 47.4 — Pension assets 43.7 32.1 Corporate-owned life insurance policies 30.9 22.9 Interest rate swap 6.3 — Other 30.0 17.6 Total other long-term assets $ 241.9 $ 174.0 |
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, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Research and Development Expense [Line Items] | ||||
Research and Development Expense | $ 3.4 | $ 5.9 | $ 15 | $ 15.4 |
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, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Disaggregation of Revenue [Line Items] | ||||
Inter-segment revenue elimination | $ (5.8) | $ (2) | $ (12.4) | $ (6.5) |
Net revenue | 1,053.3 | 760.6 | 2,809.8 | 2,146.7 |
Biologics | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenue | 543.7 | 250 | 1,324.7 | 663.8 |
Biologics | Manufacturing & Commercial Product Supply | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenue | 147.5 | 85.2 | 361.8 | 229.6 |
Biologics | Development Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenue | 396.2 | 164.8 | 962.9 | 434.2 |
Biologics | Clinical Supply Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenue | 0 | 0 | 0 | 0 |
Softgel and Oral Technologies | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenue | 243.7 | 242.3 | 711.4 | 770.8 |
Softgel and Oral Technologies | Manufacturing & Commercial Product Supply | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenue | 212 | 217.6 | 616.4 | 701.5 |
Softgel and Oral Technologies | Development Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenue | 31.7 | 24.7 | 95 | 69.3 |
Softgel and Oral Technologies | 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 | 171.7 | 181.4 | 499.9 | 457.2 |
Oral and Specialty Drug Delivery | Manufacturing & Commercial Product Supply | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenue | 118.3 | 127.2 | 335.3 | 294.5 |
Oral and Specialty Drug Delivery | Development Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenue | 53.4 | 54.2 | 164.6 | 162.7 |
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 | 100 | 88.9 | 286.2 | 261.4 |
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 | 100 | 88.9 | 286.2 | 261.4 |
Total Catalent before inter-segment revenue elimination | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenue | 1,059.1 | 762.6 | 2,822.2 | 2,153.2 |
Total Catalent before inter-segment revenue elimination | Manufacturing & Commercial Product Supply | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenue | 477.8 | 430 | 1,313.5 | 1,225.6 |
Total Catalent before inter-segment revenue elimination | Development Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenue | 481.3 | 243.7 | 1,222.5 | 666.2 |
Total Catalent before inter-segment revenue elimination | Clinical Supply Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenue | $ 100 | $ 88.9 | $ 286.2 | $ 261.4 |
Revenue Recognition Disaggreg_2
Revenue Recognition Disaggregation of Revenue by Geography (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Disaggregation of Revenue [Line Items] | ||||
Elimination of revenue attributable to multiple locations | $ (23.5) | $ (20.5) | $ (67.8) | $ (59.1) |
Net revenue | 1,053.3 | 760.6 | 2,809.8 | 2,146.7 |
United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenue | 670 | 438.9 | 1,722.2 | 1,215.9 |
Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenue | 344.9 | 258.7 | 954.8 | 690.1 |
International Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenue | $ 61.9 | $ 83.5 | $ 200.6 | $ 299.8 |
Revenue Recognition Contractual
Revenue Recognition Contractual Liabilities (Details) - USD ($) $ in Millions | 9 Months Ended | |
Mar. 31, 2021 | Jun. 30, 2020 | |
Revenue Recognition and Deferred Revenue [Abstract] | ||
Contract with Customer, Liability | $ 300.6 | $ 218.4 |
Contract with Customer, Liability, Revenue Recognized | 147.5 | |
Contract with Customer, Asset, Purchase | $ 177.4 | $ 61.4 |
Business Combinations Acquisiti
Business Combinations Acquisition Purchase Agreement (Details) - USD ($) $ in Millions | Feb. 23, 2021 | Feb. 11, 2021 | Nov. 16, 2020 | Feb. 10, 2020 | Jan. 01, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Business Acquisition [Line Items] | ||||||||
Payments to Acquire Businesses, Net of Cash Acquired | $ 147.1 | $ 379.7 | ||||||
Goodwill, Acquired During Period | [1] | $ 60.5 | ||||||
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 | |||||||
Goodwill, Acquired During Period | $ 253.3 | |||||||
Skeletal Cell Therapy Support SA [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Business Combination, Consideration Transferred | $ 14.8 | |||||||
Goodwill, Acquired During Period | $ 11.6 | |||||||
Acorda Therapeutics, Inc [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Business Combination, Consideration Transferred | $ 82.5 | |||||||
Goodwill, Acquired During Period | $ 1.8 | |||||||
Delphi Genetics SA [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Business Combination, Consideration Transferred | $ 50 | |||||||
Goodwill, Acquired During Period | 48.6 | |||||||
Hepatic Cell Therapy Support SA | ||||||||
Business Acquisition [Line Items] | ||||||||
Payments to Acquire Businesses, Net of Cash Acquired | $ 15.2 | |||||||
[1] | The addition to goodwill in the Biologics reporting segment relates to the Delphi and Skeletal acquisitions. The addition to goodwill in the Oral and Specialty Delivery reporting segment relates to the Acorda acquisition. For further details, see Note 3, Business Combinations and Divestitures . |
Business Combinations Net Asset
Business Combinations Net Assets Acquired (Details) - USD ($) $ in Millions | Feb. 23, 2021 | Feb. 11, 2021 | Nov. 16, 2020 | Feb. 10, 2020 | Jan. 01, 2020 |
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 | 6.5 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Prepaid Expense and Other Assets | $ 12.2 | ||||
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 | 1.2 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Liabilities | $ 7.7 | ||||
Skeletal Cell Therapy Support SA [Member] | |||||
Net Assets Acquired from Business Combinations | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment | $ 2.6 | ||||
Acorda Therapeutics, Inc [Member] | |||||
Net Assets Acquired from Business Combinations | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment | $ 79.3 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Inventory | $ 2.1 | ||||
Delphi Genetics SA [Member] | |||||
Net Assets Acquired from Business Combinations | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment | $ 4.2 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 3 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Long-term Debt | 5.7 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities | 4.6 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets | $ 3.2 |
Business Combinations, Divestit
Business Combinations, Divestitures (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | ||
Business Acquisition, Contingent Consideration [Line Items] | |||||
Payments for (Proceeds from) Businesses and Interest in Affiliates | [1] | $ 184 | $ 0 | $ 184 | $ (1.1) |
Goodwill, Acquired During Period | [2] | 60.5 | |||
Blow-Fill-Seal Business, Woodstock [Member] | |||||
Business Acquisition, Contingent Consideration [Line Items] | |||||
Proceeds from Divestiture of Businesses and Interests in Affiliates | 300 | ||||
Payments for (Proceeds from) Businesses and Interest in Affiliates | 184 | ||||
Cash and Noncash Divestiture, Amount of Consideration Received | 334.2 | 334.2 | |||
Business Combination, Acquired Receivable, Fair Value | [3] | 47.4 | 47.4 | ||
Business Combination, Acquired Receivables, Gross Contractual Amount | 50 | 50 | |||
Business Combination, Contingent Consideration, Asset | [4] | 0 | 0 | ||
Business Combination, Consideration Transferred, Other | [5] | 13.2 | |||
Goodwill, Acquired During Period | 55.8 | ||||
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High | 50 | 50 | |||
Business Acquisition, Carrying Value, Net Assets | 150.2 | 150.2 | |||
Business Combination, Loan Discount | 2.6 | ||||
Business Acquisition, Transaction Costs | 7.7 | 7.7 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities | 2.1 | 2.1 | |||
Business Combination, Working Capital Adjustments | $ 3.4 | 3.4 | |||
Proceeds From Divestiture Of Businesses, Net Cash Proceeds | $ 286.8 | ||||
[1] | Gain on sale of subsidiary for the three and nine months ended March 31, 2021 is affiliated with the sale of the Blow-Fill-Seal Business. Loss on sale of subsidiary for the nine months ended March 31, 2020 is affiliated with the disposal of a facility in Australia. | ||||
[2] | The addition to goodwill in the Biologics reporting segment relates to the Delphi and Skeletal acquisitions. The addition to goodwill in the Oral and Specialty Delivery reporting segment relates to the Acorda acquisition. For further details, see Note 3, Business Combinations and Divestitures . | ||||
[3] | The note receivable, which provides for interest at a rate of 5.0% paid in kind, had an estimated fair value of $47.4 million at March 31, 2021, which is the $50.0 million aggregate principal amount less a $2.6 million discount determined using a discounted cash flow model with the market interest rate as a significant input. | ||||
[4] | The Company determined that the estimated fair value of the contingent consideration from the sale of the Blow-Fill-Seal Business at March 31, 2021 is zero, and therefore, no contingent consideration was recorded as a result of the divestiture of the Blow-Fill-Seal Business. If any contingent consideration is subsequently received, it will be recorded in the period in which it is received. The Company has elected an accounting policy to recognize increases in the carrying amount of the contingent consideration asset using the gain contingency guidance in ASC 450, Contingencies . | ||||
[5] | Other includes $7.7 million of transaction expenses, a working capital adjustment of $3.4 million, and a $2.1 million assumption of liabilities to create net cash proceeds of $286.8 million. |
Goodwill - Rollforward (Detail)
Goodwill - Rollforward (Detail) $ in Millions | 9 Months Ended | |
Mar. 31, 2021USD ($) | ||
Goodwill [Roll Forward] | ||
Beginning balance | $ 2,470.6 | |
Goodwill, Acquired During Period | 60.5 | [1] |
Goodwill, Written off Related to Sale of Business Unit | (55.8) | [2] |
Foreign currency translation adjustments | 39.7 | |
Ending balance | 2,515 | |
Biologics | ||
Goodwill [Roll Forward] | ||
Beginning balance | 1,462.2 | |
Goodwill, Acquired During Period | 58.7 | [1] |
Goodwill, Written off Related to Sale of Business Unit | 0 | [2] |
Foreign currency translation adjustments | 12.2 | |
Ending balance | 1,533.1 | |
Softgel and Oral Technologies | ||
Goodwill [Roll Forward] | ||
Beginning balance | 505.5 | |
Goodwill, Acquired During Period | 0 | [1] |
Goodwill, Written off Related to Sale of Business Unit | 0 | [2] |
Foreign currency translation adjustments | 7.5 | |
Ending balance | 513 | |
Oral and Specialty Drug Delivery | ||
Goodwill [Roll Forward] | ||
Beginning balance | 354.7 | |
Goodwill, Acquired During Period | 1.8 | [1] |
Goodwill, Written off Related to Sale of Business Unit | (55.8) | [2] |
Foreign currency translation adjustments | 13 | |
Ending balance | 313.7 | |
Clinical Supply Services | ||
Goodwill [Roll Forward] | ||
Beginning balance | 148.2 | |
Goodwill, Acquired During Period | 0 | [1] |
Goodwill, Written off Related to Sale of Business Unit | 0 | [2] |
Foreign currency translation adjustments | 7 | |
Ending balance | $ 155.2 | |
[1] | The addition to goodwill in the Biologics reporting segment relates to the Delphi and Skeletal acquisitions. The addition to goodwill in the Oral and Specialty Delivery reporting segment relates to the Acorda acquisition. For further details, see Note 3, Business Combinations and Divestitures . | |
[2] | Represents goodwill associated with the divestiture of the Company's Blow-Fill-Seal Business. |
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 | |
Sep. 30, 2020 | Mar. 31, 2021 | Jun. 30, 2020 | |
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Value | $ 1,454.2 | $ 1,441.7 | |
Accumulated Amortization | (619.4) | (553) | |
Net Carrying Value | $ 834.8 | 888.7 | |
Core technology [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Weighted Average Life | 19 years | 19 years | |
Gross Carrying Value | $ 139.9 | 134.5 | |
Accumulated Amortization | (91.9) | (83) | |
Net Carrying Value | $ 48 | 51.5 | |
Customer Relationships [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Weighted Average Life | 14 years | 14 years | |
Gross Carrying Value | $ 1,015.1 | 1,021.3 | |
Accumulated Amortization | (286.4) | (248) | |
Net Carrying Value | $ 728.7 | 773.3 | |
Product Relationships [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Weighted Average Life | 11 years | 11 years | |
Gross Carrying Value | $ 280.2 | 270.4 | |
Accumulated Amortization | (233.8) | (217.5) | |
Net Carrying Value | $ 46.4 | 52.9 | |
Other Intangible Assets [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Weighted Average Life | 5 years | 5 years | |
Gross Carrying Value | $ 19 | 15.5 | |
Accumulated Amortization | (7.3) | (4.5) | |
Net Carrying Value | $ 11.7 | $ 11 |
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, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Intangible Assets Disclosure [Abstract] | ||||
Amortization expense | $ 23.3 | $ 23 | $ 69.3 | $ 66.3 |
Remainder Fiscal 2021 | 23.2 | 23.2 | ||
2022 | 92.1 | 92.1 | ||
2023 | 91.4 | 91.4 | ||
2024 | 90.7 | 90.7 | ||
2025 | 89.7 | 89.7 | ||
2026 | $ 82.1 | $ 82.1 |
Long-Term Obligations and Oth_3
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) - USD ($) $ in Millions | Mar. 31, 2021 | Feb. 28, 2021 | Jun. 30, 2020 | |
Schedule Of Debt [Line Items] | ||||
Total long-term debt | $ 3,223.2 | $ 3,018 | ||
Debt, Current | 73.6 | 72.9 | ||
Long-term obligations, less current portion | 3,149.6 | 2,945.1 | ||
Term loan facility B-2 U.S. dollar-denominated | ||||
Schedule Of Debt [Line Items] | ||||
Total long-term debt | 0 | $ 933.4 | 938.1 | |
Term loan facility B-3 U.S. dollar-denominated | ||||
Schedule Of Debt [Line Items] | ||||
Total long-term debt | $ 1,000 | 0 | ||
3.125% Senior US Denominated Notes | ||||
Schedule Of Debt [Line Items] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 3.125% | |||
Deferred purchase consideration | ||||
Schedule Of Debt [Line Items] | ||||
Total long-term debt | $ 49.1 | 97.5 | ||
Capital lease obligations | ||||
Schedule Of Debt [Line Items] | ||||
Total long-term debt | 185 | 142.2 | ||
Other obligations | ||||
Schedule Of Debt [Line Items] | ||||
Total long-term debt | 2.6 | 1.4 | ||
Carrying Value [Member] | ||||
Schedule Of Debt [Line Items] | ||||
Total long-term debt | 3,223.2 | 3,018 | ||
Debt Instrument, Fair Value Disclosure | 3,260.7 | 3,054.8 | ||
Carrying Value [Member] | Debt Issuance Costs | ||||
Schedule Of Debt [Line Items] | ||||
Total long-term debt | 37.5 | 36.8 | ||
Estimate of Fair Value Measurement [Member] | ||||
Schedule Of Debt [Line Items] | ||||
Total long-term debt | 3,197.5 | 3,005.7 | ||
Debt Instrument, Fair Value Disclosure | 3,197.5 | 3,005.7 | ||
Estimate of Fair Value Measurement [Member] | Debt Issuance Costs | ||||
Schedule Of Debt [Line Items] | ||||
Total long-term debt | 0 | 0 | ||
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 | 0 | 450 | ||
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 | 500 | 500 | ||
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 | [1] | 974 | 925.6 | |
Fair Value, Inputs, Level 2 [Member] | Carrying Value [Member] | 3.125% Senior US Denominated Notes | ||||
Schedule Of Debt [Line Items] | ||||
Debt Instrument, Fair Value Disclosure | 550 | 0 | ||
Fair Value, Inputs, Level 2 [Member] | Estimate of Fair Value Measurement [Member] | U.S. dollar-denominated 4.875% Senior Notes due 2026 | ||||
Schedule Of Debt [Line Items] | ||||
Debt Instrument, Fair Value Disclosure | 0 | 463.6 | ||
Fair Value, Inputs, Level 2 [Member] | Estimate of Fair Value Measurement [Member] | U.S Dollar-denominated 5.00% Senior Notes [Member] | ||||
Schedule Of Debt [Line Items] | ||||
Debt Instrument, Fair Value Disclosure | 534.3 | 537.9 | ||
Fair Value, Inputs, Level 2 [Member] | Estimate of Fair Value Measurement [Member] | 2.375% Senior Euro Denominated Notes [Member] | ||||
Schedule Of Debt [Line Items] | ||||
Debt Instrument, Fair Value Disclosure | 966 | 844.1 | ||
Fair Value, Inputs, Level 2 [Member] | Estimate of Fair Value Measurement [Member] | 3.125% Senior US Denominated Notes | ||||
Schedule Of Debt [Line Items] | ||||
Debt Instrument, Fair Value Disclosure | $ 514.2 | $ 0 | ||
[1] | The increase in euro-denominated debt is primarily due to large fluctuations in foreign currency exchange rates. |
Long-Term Obligations and Oth_4
Long-Term Obligations and Other Short-Term Borrowings Long-Term Obligations and Other Short-Term Borrowings (Details) - USD ($) $ in Millions | Oct. 23, 2017 | Mar. 31, 2021 | Feb. 28, 2021 | Jun. 30, 2020 |
Debt Instrument [Line Items] | ||||
Total long-term debt | $ 3,223.2 | $ 3,018 | ||
Payments to Acquire Businesses, Gross | $ 950 | |||
Payable Installments for Business Acquisition | 50 | |||
3.125% Senior US Denominated Notes | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 3.125% | |||
Term loan facility B-2 U.S. dollar-denominated | ||||
Debt Instrument [Line Items] | ||||
Total long-term debt | $ 0 | $ 933.4 | 938.1 | |
Term loan facility B-3 U.S. dollar-denominated | ||||
Debt Instrument [Line Items] | ||||
Total long-term debt | 1,000 | $ 0 | ||
Debt Instrument, Increase (Decrease), Other, Net | $ 66.6 | |||
Term loan facility B-3 U.S. dollar-denominated | London Interbank Offered Rate (LIBOR) [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Basis Spread on Variable Rate | 2.00% | |||
Term loan facility B-3 U.S. dollar-denominated | London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Basis Spread on Variable Rate | 0.50% | |||
Revolving Credit Commitments [Member] | ||||
Debt Instrument [Line Items] | ||||
Line of Credit Facility, Increase (Decrease), Other, Net | $ 175 | |||
Accrued Liabilities [Member] | ||||
Debt Instrument [Line Items] | ||||
Payments to Acquire Businesses, Gross | $ 200 |
Long-Term Obligations and Oth_5
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, 2021 | Jun. 30, 2020 | |
Estimate of Fair Value Measurement [Member] | |||
Fair Value Measurements Of Financial Instruments [Line Items] | |||
Debt Instrument, Fair Value Disclosure | $ 3,197.5 | $ 3,005.7 | |
Carrying Value [Member] | |||
Fair Value Measurements Of Financial Instruments [Line Items] | |||
Debt Instrument, Fair Value Disclosure | 3,260.7 | 3,054.8 | |
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 | 0 | 463.6 | |
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 | 0 | 450 | |
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 | 534.3 | 537.9 | |
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 | 500 | 500 | |
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 | 966 | 844.1 | |
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 | [1] | 974 | 925.6 |
3.125% Senior US Denominated Notes | 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 | 514.2 | 0 | |
3.125% Senior US Denominated Notes | Fair Value, Inputs, Level 2 [Member] | Carrying Value [Member] | |||
Fair Value Measurements Of Financial Instruments [Line Items] | |||
Debt Instrument, Fair Value Disclosure | 550 | 0 | |
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 | 1,183 | 1,160.1 | |
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 | $ 1,236.7 | $ 1,179.2 | |
[1] | The increase in euro-denominated debt is primarily due to large fluctuations in foreign currency exchange rates. |
Earnings Per Share Earnings Per
Earnings Per Share Earnings Per Share - Additional Details (Details) - USD ($) $ / shares in Units, $ in Millions | Nov. 23, 2020 | Mar. 31, 2021 | Jun. 30, 2020 | Feb. 06, 2020 |
Earnings Per Share [Abstract] | ||||
Conversion of Stock, Shares Converted | 265,233 | |||
Dividends, Preferred Stock, Stock | $ 1.9 | |||
Convertible Preferred Stock, Shares Issued upon Conversion | 20.33 | |||
Stock Issued During Period, Shares, Conversion of Convertible Securities | 5,392,280 | |||
Common Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 | $ 0.01 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Earnings Per Share [Abstract] | ||||
Net earnings/(loss) | $ 231.8 | $ 20.9 | $ 402.6 | $ 66.5 |
Participating Securities, Distributed and Undistributed Earnings (Loss), Basic | 14.7 | 9.1 | 42.5 | 27.8 |
Net Income (Loss) Available to Common Stockholders, Basic | $ 217.1 | $ 11.8 | $ 360.1 | $ 38.7 |
Dilutive securities issuable-stock plans | 2,000,000 | 1,800,000 | 2,300,000 | 1,800,000 |
Total weighted average diluted shares outstanding | 172,500,000 | 153,100,000 | 169,500,000 | 149,500,000 |
Earnings Per Share, Basic | $ 1.27 | $ 0.08 | $ 2.15 | $ 0.26 |
Earnings Per Share, Diluted | $ 1.26 | $ 0.08 | $ 2.12 | $ 0.26 |
Weighted Average Number of Shares Outstanding, Basic | 170,500,000 | 151,300,000 | 167,200,000 | 147,700,000 |
Diluted earnings per share due
Diluted earnings per share due to their antidilutive effect (Detail) - shares shares in Millions | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Series A Preferred Stock | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 7.7 | 13.1 | 10.6 | 13.1 |
Employee Stock Option [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 0 | 0.3 | 0.2 | 0.4 |
Restricted Stock Units (RSUs) [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 0 | 0.1 | 0.1 | 0.1 |
Performance Shares | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 0 | 0.1 | 0 | 0.1 |
Other Income and Expense (Detai
Other Income and Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | ||
Other Income and Expenses [Abstract] | |||||
Debt refinancing costs | [1] | 17.2 | 16.0 | 17.2 | 16.1 |
Foreign Currency (gains) and losses | [2] | $ 6.9 | $ (5.3) | $ 6.1 | $ (1.7) |
Other | [3] | 0.5 | 26 | (18.2) | 22.8 |
Other (income)/expense, net | [4] | 24.6 | 36.7 | 5.1 | 37.2 |
Write off of Deferred Debt Issuance Cost | 4.4 | 6 | |||
Early Repayment of Senior Debt | 11 | 10 | |||
Derivative, Gain (Loss) on Derivative, Net | $ 0.4 | $ (26.3) | 16.4 | $ (24.9) | |
Gain (Loss) on Extinguishment of Debt | $ 1.8 | ||||
[1] | Debt refinancing costs for the three and nine months ended March 31, 2021 includes (a) a write-off of $4.4 million of previously capitalized financing charges related to the Company’s repaid Term B-2 Loans and the 2026 Notes, (b) $1.8 million of financing charges related to the Company’s Term B-3 Loans, and (c) a $11.0 million premium on early redemption of the 2026 Notes. Debt refinancing costs for the three and nine months ended March 31, 2020 includes (x) a write-off of $6.0 million of previously capitalized financing charges related to the Company’s repaid euro-denominated term loans under its senior secured credit facilities and the Company’s redeemed euro-denominated senior notes and (y) a $10.0 million premium on early redemption of the euro notes. | ||||
[2] | Foreign currency remeasurement gains include both cash and non-cash transactions. | ||||
[3] | Other, for the three and nine months ended March 31, 2021 includes, in part, total realized and unrealized gain of $0.4 million and $16.4 million, respectively, related to the fair value of the derivative liability associated with the Series A Preferred Stock. Other, for the three and nine months ended March 31, 2020 includes, in part, total unrealized losses of $26.3 million and $24.9 million, respectively, related to the fair value of the derivative liability associated with the Series A Preferred Stock | ||||
[4] | Refer to Note 8, Other expense, net for details of financing charges and foreign currency translation adjustments recorded within other expense, net. |
Restructuring and Other Costs (
Restructuring and Other Costs (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Restructuring and Related Activities [Abstract] | ||||
Restructuring and other | $ 3 | $ 1.3 | $ 9.4 | $ 2.5 |
Restructuring and Other Costs I
Restructuring and Other Costs Individual Site (Details) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2021USD ($) | Mar. 31, 2020USD ($) | Mar. 31, 2021USD ($)employees | Mar. 31, 2020USD ($) | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other | $ 3 | $ 1.3 | $ 9.4 | $ 2.5 |
Bolton CS [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other | 0.9 | $ 4.9 | ||
Bolton CS [Member] | Minimum [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and Related Cost, Expected Number of Positions Eliminated | employees | 150 | |||
Restructuring and Related Cost, Expected Cost | 4 | $ 4 | ||
Bolton CS [Member] | Maximum [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and Related Cost, Expected Number of Positions Eliminated | employees | 180 | |||
Restructuring and Related Cost, Expected Cost | $ 7 | $ 7 |
Derivative Instruments and He_3
Derivative Instruments and Hedging Activities - Additional Information (Detail) - USD ($) $ in Millions | Nov. 23, 2020 | May 17, 2019 | Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | Jun. 30, 2020 |
Derivative [Line Items] | |||||||
Total long-term debt | $ 3,223.2 | $ 3,223.2 | $ 3,018 | ||||
Unrealized foreign exchange gain/(loss) within other comprehensive income | 32.6 | $ 3.7 | (45.2) | $ 17.5 | |||
Unrealized foreign exchange gain/(loss) within statement of operations | 1.1 | 1.9 | (3.3) | 7.7 | |||
Net accumulated gain related to investment hedges | 17.3 | ||||||
Proceeds from Issuance of Redeemable Preferred Stock | $ 646.3 | ||||||
Payments of Stock Issuance Costs | $ 3.7 | ||||||
Derivative Liability | 23.6 | ||||||
Derivative, Gain (Loss) on Derivative, Net | 0.4 | $ (26.3) | 16.4 | $ (24.9) | |||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Purchases, Sales, Issues, Settlements | $ (3.5) | ||||||
Cash Paid to Settle, Interest Rate Swap Agreement | 2.3 | 2.3 | |||||
Embedded Derivative, Fair Value of Embedded Derivative Liability | $ 8.6 | 3.7 | 3.7 | ||||
Interest Rate Cash Flow Hedge Liability at Fair Value | $ 3.7 | ||||||
Euro Denominated Debt Outstanding [Member] | |||||||
Derivative [Line Items] | |||||||
Total long-term debt | 974 | 974 | |||||
U.S. Denominated Term Loan [Member] | |||||||
Derivative [Line Items] | |||||||
Total Debt, U.S Denominated Term Loan | $ 500 | $ 500 | |||||
Debt Instrument, Interest Rate, Effective Percentage | 0.9985% | 0.9985% |
Fair value measurement recurrin
Fair value measurement recurring basis - USD ($) $ in Millions | Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2020 |
Fair Value Disclosures [Abstract] | |||
Marketable Securities | $ 74.7 | $ 0 | |
Trading Securities at Fair Value | 2.7 | 0.5 | |
Cash Surrender Value, Fair Value Disclosure | 30.9 | 22.9 | |
Interest Rate Cash Flow Hedge Asset at Fair Value | $ 6.3 | 6.3 | |
Interest Rate Cash Flow Hedge Liability at Fair Value | 3.7 | ||
Series A Preferred Stock derivative liability | 3.7 | 23.6 | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Marketable Securities | 74.7 | 0 | |
Trading Securities at Fair Value | 2.7 | 0.5 | |
Interest Rate Cash Flow Hedge Asset at Fair Value | $ 6.3 | 6.3 | |
Series A Preferred Stock derivative liability | 3.7 | 23.6 | |
Interest Rate Cash Flow Hedge Liability at Fair Value | 3.7 | ||
Fair Value, Inputs, Level 1 [Member] | |||
Fair Value Disclosures [Abstract] | |||
Marketable Securities | 74.7 | ||
Trading Securities at Fair Value | 2.7 | 0.5 | |
Company-owned Insurance Policies Fair Value Disclosure | 0 | 0 | |
Interest Rate Cash Flow Hedge Asset at Fair Value | 0 | ||
Interest Rate Cash Flow Hedge Liability at Fair Value | 0 | ||
Series A Preferred Stock derivative liability | 0 | 0 | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Marketable Securities | 74.7 | ||
Trading Securities at Fair Value | 2.7 | 0.5 | |
Company-owned Insurance Policies Fair Value Disclosure | 0 | 0 | |
Interest Rate Cash Flow Hedge Asset at Fair Value | 0 | ||
Series A Preferred Stock derivative liability | 0 | 0 | |
Interest Rate Cash Flow Hedge Liability at Fair Value | 0 | ||
Fair Value, Inputs, Level 2 [Member] | |||
Fair Value Disclosures [Abstract] | |||
Marketable Securities | 0 | ||
Trading Securities at Fair Value | 0 | 0 | |
Company-owned Insurance Policies Fair Value Disclosure | 30.9 | 22.9 | |
Interest Rate Cash Flow Hedge Asset at Fair Value | 6.3 | ||
Interest Rate Cash Flow Hedge Liability at Fair Value | 3.7 | ||
Series A Preferred Stock derivative liability | 0 | 0 | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Marketable Securities | 0 | ||
Trading Securities at Fair Value | 0 | 0 | |
Company-owned Insurance Policies Fair Value Disclosure | 30.9 | 22.9 | |
Interest Rate Cash Flow Hedge Asset at Fair Value | 6.3 | ||
Series A Preferred Stock derivative liability | 0 | 0 | |
Interest Rate Cash Flow Hedge Liability at Fair Value | 3.7 | ||
Fair Value, Inputs, Level 3 [Member] | |||
Fair Value Disclosures [Abstract] | |||
Marketable Securities | 0 | ||
Trading Securities at Fair Value | 0 | 0 | |
Company-owned Insurance Policies Fair Value Disclosure | 0 | 0 | |
Interest Rate Cash Flow Hedge Asset at Fair Value | 0 | ||
Interest Rate Cash Flow Hedge Liability at Fair Value | 0 | ||
Series A Preferred Stock derivative liability | 3.7 | 23.6 | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Marketable Securities | 0 | ||
Trading Securities at Fair Value | 0 | 0 | |
Company-owned Insurance Policies Fair Value Disclosure | 0 | 0 | |
Interest Rate Cash Flow Hedge Asset at Fair Value | 0 | ||
Series A Preferred Stock derivative liability | $ 3.7 | 23.6 | |
Interest Rate Cash Flow Hedge Liability at Fair Value | $ 0 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | Jun. 30, 2020 | |
Income Tax Disclosure [Abstract] | |||||
Unrecognized Tax Benefits, Including Income Tax Penalties and Interest Accrued | $ 6 | $ 6 | $ 5.6 | ||
Income tax expense(benefit) | 85.3 | $ 8.8 | 90.9 | $ 14.9 | |
Earnings from continuing operations, before income taxes | 317.1 | $ 29.7 | 493.5 | $ 81.4 | |
Tax Benefit, U.S foreign tax credit | 22.2 | ||||
Disposition of Business, Tax Charge | $ 57.4 | $ 57.4 |
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, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | Jun. 30, 2020 | ||
Components of net periodic benefit cost: | ||||||
Service cost | $ 1 | $ 0.9 | $ 3 | $ 2.3 | ||
Interest cost | 1.1 | 0.7 | 3.2 | 4.2 | ||
Expected return on plan assets | (2.6) | (2.5) | (7.5) | (7.8) | ||
Amortization | [1] | 0.8 | 2.6 | 2.2 | 4.1 | |
Net amount recognized | 0.3 | 1.7 | 0.9 | 2.8 | ||
Estimated discounted value of future employer contributions | 38.5 | 38.5 | $ 38.6 | |||
Estimated annual cash contribution | $ 1.7 | $ 1.7 | $ 1.7 | $ 1.7 | ||
[1] | Amount represents the amortization of unrecognized actuarial losses. |
Equity and Accumulated Other _3
Equity and Accumulated Other Comprehensive Income (Loss) - Equity (Details) - USD ($) | Nov. 23, 2020 | Jun. 15, 2020 | Feb. 06, 2020 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | Jun. 30, 2020 | May 17, 2019 |
Equity [Abstract] | ||||||||
Common Stock, Shares Authorized | 1,000,000,000 | 1,000,000,000 | ||||||
Preferred Stock, Shares Authorized | 100,000,000 | 100,000,000 | ||||||
Equity offering, sale of common stock | 7,700,000 | 8,400,000 | ||||||
Equity offering, sale of common stock, net | $ 547,500,000 | $ 494,200,000 | $ 494,200,000 | $ 81,800,000 | $ 494,200,000 | |||
Shares Issued, Price Per Share | $ 70.72 | $ 58.58 | ||||||
Net Proceeds used to Repay Debt, Stock Issued During Period, New Issues | $ 200,000,000 | $ 100,000,000 | ||||||
Stcok Issued During Period, Shares, Over-allotment Option | 1,200,000 | |||||||
Stock Issued During Period, Value, Over-allotment Option | $ 81,800,000 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Number of Shares | 200,000 | |||||||
Conversion of Stock, Shares Converted | 265,233 | |||||||
Dividends, Preferred Stock, Stock | $ 1,900,000 | |||||||
Convertible Preferred Stock, Shares Issued upon Conversion | 20.33 | |||||||
Stock Issued During Period, Shares, Conversion of Convertible Securities | 5,392,280 | |||||||
Preferred Stock, Shares Outstanding | 384,777 | 650,000 | ||||||
Stock Issued During Period, Value, Conversion of Convertible Securities | $ 253,000,000 | |||||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Purchases, Sales, Issues, Settlements | $ (3,500,000) | |||||||
Auction Market Preferred Securities, Stock Series [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 | 384,777 | 650,000 | ||||||
Series A [Member] | ||||||||
Equity [Abstract] | ||||||||
Preferred Stock, Shares Authorized | 1,000,000 | |||||||
Embedded Derivative, Estimate of Embedded Derivative Liability | $ 39,700,000 | |||||||
Auction Market Preferred Securities, Stock Series [Line Items] | ||||||||
Preferred Stock, Shares Authorized | 1,000,000 | |||||||
Preferred Stock, Par or Stated Value Per Share | $ 0.01 | |||||||
Preferred Stock, Shares Issued | 650,000 | |||||||
Preferred Stock, Issuance Value | $ 650,000,000 | |||||||
Preferred Stock, Value, Issued | 1,000 | |||||||
Preferred stock issuance Value, Net | 646,300,000 | |||||||
Embedded Derivative, Estimate of Embedded Derivative Liability | $ 39,700,000 |
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, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Foreign currency translation adjustments: | ||||
Net investment hedge | $ 32.6 | $ 3.7 | $ (45.2) | $ 17.5 |
Long-term intercompany loans | 15.3 | (26.9) | 38.1 | (15.3) |
Translation adjustments | (40.3) | (20.5) | 54 | (42.5) |
Total foreign currency translation adjustment, pretax | 7.6 | (43.7) | 46.9 | (40.3) |
Tax expense/(benefit) | 7.8 | (0.6) | (8.2) | 2.5 |
Total foreign currency translation adjustment, net of tax | (0.2) | (43.1) | 55.1 | (42.8) |
Net change in derivatives and hedges | ||||
Net loss recognized during the period | 7.2 | 0 | 7.7 | 0 |
Total derivatives and hedges, pretax | 7.2 | 0 | 7.7 | 0 |
Tax expense/(benefit) | 1.7 | 0 | 1.8 | 0 |
Net change in derivatives and hedges, net of tax | 5.5 | 0 | 5.9 | 0 |
Net change in minimum pension liability | ||||
Net gain/(loss) recognized during the period | 0.8 | 1.2 | 2.2 | 4.1 |
Total pension liability, pretax | 0.8 | 1.2 | 2.2 | 4.1 |
Tax expense/(benefit) | 0.2 | 1.1 | 0.6 | 1 |
Pension and other post-retirement adjustments | 0.6 | 0.1 | 1.6 | 3.1 |
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, Net of Tax, Portion Attributable to Parent [Abstract] | ||||
Available-for-sale Securities, Gross Realized Losses | (0.2) | 0 | (0.2) | 0 |
Total available for sale investment, pretax | (0.2) | 0 | (0.2) | 0 |
Tax expense/(benefit) | 0 | 0 | 0 | 0 |
Available for sale investments | $ (0.2) | $ 0 | $ (0.2) | $ 0 |
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, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Beginning Balance | $ (329.6) | $ (386.3) | ||
Other comprehensive income/(loss) before reclassifications | 5.1 | 60.8 | ||
Amounts reclassified from accumulated other comprehensive income/(loss) | 0.6 | 1.6 | ||
Total foreign currency translation adjustment, net of tax | (0.2) | $ (43.1) | 55.1 | $ (42.8) |
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, after Tax | 0.6 | 0.1 | 1.6 | 3.1 |
Net change in derivatives and hedges, net of tax | 5.5 | 0 | 5.9 | 0 |
Available for sale investments | (0.2) | 0 | (0.2) | 0 |
Other comprehensive income/(loss), net of tax | 5.7 | (43) | 62.4 | (39.7) |
Ending Balance | (323.9) | (323.9) | ||
Accumulated Translation Adjustment [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Beginning Balance | (279.8) | (335.1) | ||
Other comprehensive income/(loss) before reclassifications | (0.2) | 55.1 | ||
Amounts reclassified from accumulated other comprehensive income/(loss) | 0 | 0 | ||
Total foreign currency translation adjustment, net of tax | (0.2) | 55.1 | ||
Ending Balance | (280) | (280) | ||
Accumulated Defined Benefit Plans Adjustment [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Beginning Balance | (46.5) | (47.5) | ||
Other comprehensive income/(loss) before reclassifications | 0 | 0 | ||
Amounts reclassified from accumulated other comprehensive income/(loss) | 0.6 | 1.6 | ||
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, after Tax | 0.6 | (1.6) | ||
Ending Balance | (45.9) | (45.9) | ||
AOCI, Derivative Qualifying as Hedge, Parent [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Beginning Balance | (2.2) | (2.6) | ||
Other comprehensive income/(loss) before reclassifications | 5.5 | 5.9 | ||
Amounts reclassified from accumulated other comprehensive income/(loss) | 0 | 0 | ||
Net change in derivatives and hedges, net of tax | 5.5 | 5.9 | ||
Ending Balance | 3.3 | 3.3 | ||
ACOI, Accumulated Gain (Loss), Marketable Securities [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Beginning Balance | 0 | 0 | ||
Other comprehensive income/(loss) before reclassifications | (0.2) | (0.2) | ||
Amounts reclassified from accumulated other comprehensive income/(loss) | 0 | 0 | ||
Available for sale investments | (0.2) | $ 0 | (0.2) | $ 0 |
Ending Balance | (0.2) | (0.2) | ||
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 | ||
Other Comprehensive Income, Other, Net of Tax | 0 | 0 | ||
Ending Balance | $ (1.1) | $ (1.1) |
Segment Information - Net Reven
Segment Information - Net Revenue and Segment Ebitda (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | ||
Segment Reporting, Revenue & EBITDA Reconciling Item [Line Items] | |||||
Net revenue | $ 1,053.3 | $ 760.6 | $ 2,809.8 | $ 2,146.7 | |
Inter-segment revenue elimination | (5.8) | (2) | (12.4) | (6.5) | |
Segment Reporting Information Unallocated Expense | [1] | 122.6 | (63.9) | 49 | (134.6) |
Biologics | |||||
Segment Reporting, Revenue & EBITDA Reconciling Item [Line Items] | |||||
Net revenue | 543.7 | 250 | 1,324.7 | 663.8 | |
Segment EBITDA | 179.9 | 51.9 | 421.9 | 150.7 | |
Softgel and Oral Technologies | |||||
Segment Reporting, Revenue & EBITDA Reconciling Item [Line Items] | |||||
Net revenue | 243.7 | 242.3 | 711.4 | 770.8 | |
Segment EBITDA | 59.6 | 60.1 | 143 | 171 | |
Oral and Specialty Drug Delivery | |||||
Segment Reporting, Revenue & EBITDA Reconciling Item [Line Items] | |||||
Net revenue | 171.7 | 181.4 | 499.9 | 457.2 | |
Segment EBITDA | 30.7 | 56.2 | 96.3 | 117 | |
Clinical Supply Services | |||||
Segment Reporting, Revenue & EBITDA Reconciling Item [Line Items] | |||||
Net revenue | 100 | 88.9 | 286.2 | 261.4 | |
Segment EBITDA | 27.1 | 24.6 | 77.4 | 70.2 | |
Total Catalent sub-total of Segment Reporting [Member] | |||||
Segment Reporting, Revenue & EBITDA Reconciling Item [Line Items] | |||||
Segment EBITDA | $ 297.3 | $ 192.8 | $ 738.6 | $ 508.9 | |
[1] | Unallocated costs include restructuring and special items, stock-based compensation, gain (loss) on sale of subsidiary, 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, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | ||
Unallocated costs [Abstract] | |||||
Impairment Charges And Gain Loss On Sale Of Assets | $ 5.3 | $ 0.6 | $ 7.7 | $ 1 | |
Stock-based compensation | 8.4 | 8.6 | 38.5 | 35.5 | |
Restructuring And Other Special Items | [1] | 3.3 | 8.9 | 22.9 | 28.6 |
Payments for (Proceeds from) Businesses and Interest in Affiliates | [2] | 184 | 0 | 184 | (1.1) |
Other (income)/expense, net | [3] | (24.6) | (36.7) | (5.1) | (37.2) |
Non Allocated Corporate Costs Net | 19.8 | 9.1 | 60.8 | 31.2 | |
Segment Reporting Information Unallocated Expense | [4] | $ (122.6) | $ 63.9 | $ (49) | $ 134.6 |
[1] | Restructuring and other special items for the three months ended March 31, 2021 include transaction and integration costs associated with the Delphi, Acorda, and Skeletal acquisitions, and restructuring costs associated with the closure of the Company's Clinical Supply Services facility in Bolton, U.K. Restructuring and other special items for the nine months ended March 31, 2021 also include transaction and integration costs associated with the Anagni, MaSTherCell, Delphi, Acorda and Skeletal acquisitions and the disposal of a facility in Australia. Restructuring and other special items during the three and nine months ended March 31, 2020 include transaction and integration costs associated with the Company’s cell and gene therapy acquisitions and the disposal of a facility in Australia. | ||||
[2] | Gain on sale of subsidiary for the three and nine months ended March 31, 2021 is affiliated with the sale of the Blow-Fill-Seal Business. Loss on sale of subsidiary for the nine months ended March 31, 2020 is affiliated with the disposal of a facility in Australia. | ||||
[3] | Refer to Note 8, Other expense, net for details of financing charges and foreign currency translation adjustments recorded within other expense, net. | ||||
[4] | Unallocated costs include restructuring and special items, stock-based compensation, gain (loss) on sale of subsidiary, 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, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | ||
Segment Reporting [Abstract] | |||||
Segment Reporting Information Unallocated Expense | [1] | $ (122.6) | $ 63.9 | $ (49) | $ 134.6 |
Depreciation and amortization | 75.9 | 64.8 | 216 | 187.3 | |
Interest expense, net | 26.9 | 34.4 | 78.1 | 105.6 | |
Income tax expense(benefit) | 85.3 | 8.8 | 90.9 | 14.9 | |
Earnings/(loss) from continuing operations | $ 231.8 | $ 20.9 | $ 402.6 | $ 66.5 | |
[1] | Unallocated costs include restructuring and special items, stock-based compensation, gain (loss) on sale of subsidiary, 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 | 3 Months Ended | 9 Months Ended | ||||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | Jun. 30, 2020 | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||||||
Total assets | $ 8,769.1 | $ 8,769.1 | $ 7,776.5 | |||
Payments for (Proceeds from) Businesses and Interest in Affiliates | [1] | 184 | $ 0 | 184 | $ (1.1) | |
Biologics | ||||||
Segment Reporting, Asset Reconciling Item [Line Items] | ||||||
Total assets | 4,678.4 | 4,678.4 | 3,775 | |||
Softgel and Oral Technologies | ||||||
Segment Reporting, Asset Reconciling Item [Line Items] | ||||||
Total assets | 1,539.3 | 1,539.3 | 1,501.8 | |||
Oral and Specialty Drug Delivery | ||||||
Segment Reporting, Asset Reconciling Item [Line Items] | ||||||
Total assets | 1,217.2 | 1,217.2 | 1,247.4 | |||
Clinical Supply Services | ||||||
Segment Reporting, Asset Reconciling Item [Line Items] | ||||||
Total assets | 470.9 | 470.9 | 451.2 | |||
Corporate and Eliminations [Member] | ||||||
Segment Reporting, Asset Reconciling Item [Line Items] | ||||||
Total assets | $ 863.3 | $ 863.3 | $ 801.1 | |||
[1] | Gain on sale of subsidiary for the three and nine months ended March 31, 2021 is affiliated with the sale of the Blow-Fill-Seal Business. Loss on sale of subsidiary for the nine months ended March 31, 2020 is affiliated with the disposal of a facility in Australia. |
Supplemental Balance Sheet In_3
Supplemental Balance Sheet Information - Inventory (Detail) - USD ($) $ in Millions | Mar. 31, 2021 | Jun. 30, 2020 |
Inventory, Net [Abstract] | ||
Raw materials and supplies | $ 376.6 | $ 222.6 |
Work-in-process | 204.6 | 123.2 |
Total inventories, gross | 581.2 | 345.8 |
Inventory cost adjustment | (53.3) | (22) |
Inventories | $ 527.9 | $ 323.8 |
Supplemental Balance Sheet In_4
Supplemental Balance Sheet Information - Prepaid and Other Assets (Detail) - USD ($) $ in Millions | Mar. 31, 2021 | Jun. 30, 2020 |
Prepaid Expense and Other Assets, Current [Abstract] | ||
Prepaid expenses | $ 46.6 | $ 28.6 |
Contract with Customer, Asset, Net, Current | 177.4 | 61.4 |
Spare parts supplies | 27.2 | 23.1 |
Prepaid income tax | 20.6 | 15 |
Non-U.S. value added tax | 40 | 19 |
Other current assets | 37.1 | 30.8 |
Prepaid expenses and other | $ 348.9 | $ 177.9 |
Supplemental Balance Sheet In_5
Supplemental Balance Sheet Information - Property and Equipment (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | Jun. 30, 2020 | |
Property, Plant and Equipment, Net [Abstract] | |||||
Land Buildings And Improvements | $ 1,362.1 | $ 1,362.1 | $ 1,250.9 | ||
Machinery, equipment, and capitalized software | 1,380.4 | 1,380.4 | 1,233.6 | ||
Furniture and fixtures | 22.9 | 22.9 | 20.9 | ||
Construction in progress | 715 | 715 | 440 | ||
Property, plant, and equipment, at cost | 3,480.4 | 3,480.4 | 2,945.4 | ||
Accumulated depreciation | (1,121.6) | (1,121.6) | (1,044.6) | ||
Property, plant, and equipment, net | 2,358.8 | 2,358.8 | 1,900.8 | ||
Depreciation Expense | 52.6 | $ 41.8 | 146.7 | $ 121 | |
Accumulated Capitalized Interest Costs | $ 5 | $ 5 | $ 15.2 |
Supplemental Balance Sheet In_6
Supplemental Balance Sheet Information - Other Accrued Liabilities (Detail) - USD ($) $ in Millions | Mar. 31, 2021 | Jun. 30, 2020 |
Balance Sheet Related Disclosures [Abstract] | ||
Accrued employee-related expenses | $ 175.4 | $ 140.8 |
Accrued Operating Lease, Liabilities | 14.5 | 14.6 |
Restructuring accrual | 5.6 | 2.8 |
Accrued interest | 9.9 | 29.1 |
Contract liability | 289 | 191 |
Accrued income tax | 59.9 | 4.5 |
Other accrued liabilities and expenses | 145.6 | 116.5 |
Other accrued liabilities | $ 699.9 | $ 499.3 |
Supplemental Balance Sheet In_7
Supplemental Balance Sheet Information - Other Long-Term Assets (Detail) - USD ($) $ in Millions | Mar. 31, 2021 | Jun. 30, 2020 |
Balance Sheet Related Disclosures [Abstract] | ||
Operating Lease, Right-of-Use Asset | $ 83.6 | $ 101.4 |
Loans and Leases Receivable, Gross | 47.4 | 0 |
Assets for Plan Benefits, Defined Benefit Plan | 43.7 | 32.1 |
Cash Surrender Value of Life Insurance | 30.9 | 22.9 |
Interest Rate Derivative Assets, at Fair Value | 6.3 | 0 |
Other Assets, Miscellaneous, Noncurrent | 30 | 17.6 |
Other Assets, Noncurrent | $ 241.9 | $ 174 |
Uncategorized Items - ctlt-2021
Label | Element | Value |
Debt Instrument Quarterly Amortization Rate | ctlt_DebtInstrumentQuarterlyAmortizationRate | 0.25% |