Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Jun. 30, 2022 | Aug. 19, 2022 | Dec. 31, 2021 | |
Document Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Document Period End Date | Jun. 30, 2022 | ||
Entity File Number | 001-36587 | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 20-8737688 | ||
Entity Address, Address Line One | 14 Schoolhouse Road | ||
Entity Address, City or Town | Somerset, | ||
Entity Address, State or Province | NJ | ||
Entity Address, Postal Zip Code | 08873 | ||
City Area Code | (732) | ||
Local Phone Number | 537-6200 | ||
Trading Symbol | CTLT | ||
Entity Registrant Name | CATALENT, INC. | ||
Entity Central Index Key | 0001596783 | ||
Current Fiscal Year End Date | --06-30 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | false | ||
Entity Shell Company | false | ||
Entity Common Stock, Shares Outstanding (shares) | 179,895,677 | ||
Entity Interactive Data Current | Yes | ||
Security Exchange Name | NYSE | ||
Title of 12(b) Security | Common Stock, $0.01 par value per share | ||
ICFR Auditor Attestation Flag | true | ||
Entity Public Float | $ 21,840,000,000 |
Audit Information
Audit Information | 12 Months Ended |
Jun. 30, 2022 | |
Auditor [Line Items] | |
Auditor Name | Ernst & Young LLP |
Auditor Location | Iselin, New Jersey |
Auditor Firm ID | 42 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) | 12 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | ||
Income Statement [Abstract] | ||||
Net revenue | $ 4,828,000,000 | $ 3,998,000,000 | $ 3,094,000,000 | |
Cost of sales | 3,188,000,000 | 2,646,000,000 | 2,111,000,000 | |
Gross margin | 1,640,000,000 | 1,352,000,000 | 983,000,000 | |
Selling, general, and administrative expenses | 844,000,000 | 687,000,000 | 577,000,000 | |
Disposal Group, Not Discontinued Operation, Gain (Loss) on Disposal | [1] | (1,000,000) | (182,000,000) | 1,000,000 |
Other Cost and Expense, Operating | 41,000,000 | 19,000,000 | 11,000,000 | |
Operating earnings | 756,000,000 | 828,000,000 | 394,000,000 | |
Interest expense, net | 123,000,000 | 110,000,000 | 126,000,000 | |
Other (Income)/expense, net | (28,000,000) | (3,000,000) | (8,000,000) | |
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | 605,000,000 | 715,000,000 | 260,000,000 | |
Income tax expense | 86,000,000 | 130,000,000 | 39,000,000 | |
Net earnings attributable to Catalent | 519,000,000 | 585,000,000 | 221,000,000 | |
Participating Securities, Distributed and Undistributed (Earnings) Loss, Basic | (16,000,000) | (56,000,000) | (48,000,000) | |
Net Income (Loss) Available to Common Stockholders, Basic | $ 503,000,000 | $ 529,000,000 | $ 173,000,000 | |
Earnings Per Share, Basic | $ 2.85 | $ 3.15 | $ 1.16 | |
Earnings Per Share, Diluted | $ 2.84 | $ 3.11 | $ 1.14 | |
[1]Gain on sale of subsidiary for the fiscal years ended June 30, 2022 and 2021 is affiliated with the sale of the Blow-Fill-Seal Business. Loss on sale of subsidiary for the fiscal year ended June 30, 2020 is affiliated with the disposal of a facility in Australia. |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income / (Loss) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||
Net earnings | $ 519 | $ 585 | $ 221 |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | (110) | 67 | (31) |
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, after Tax | 0 | 2 | |
Other Comprehensive Income (Loss), Securities, Available-for-sale, Adjustment, after Tax | (1) | 0 | |
Other Comprehensive Income, Debt Securities, Derivative and Hedge, Gain (Loss), after Adjustment and Tax | (27) | 3 | (3) |
Other comprehensive income /(loss), net of tax | (77) | 69 | (32) |
Comprehensive income/(loss) | 442 | 654 | 189 |
ACOI, Accumulated Gain (Loss), Marketable Securities | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||
Other Comprehensive Income (Loss), Securities, Available-for-sale, Adjustment, after Tax | (3) | $ (1) | $ 0 |
Accumulated Defined Benefit Plans Adjustment [Member] | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, after Tax | $ 9 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Jun. 30, 2022 | Jun. 30, 2021 | |
Current assets: | |||
Cash and cash equivalents | $ 449 | $ 896 | |
Trade receivables, net | 1,051 | 1,012 | |
Inventories | 702 | 563 | |
Prepaid Expense and Other Assets, Current | 625 | 376 | |
Marketable Securities | 89 | 71 | |
Total current assets | 2,916 | 2,918 | |
Property, plant, and equipment, net | [1] | 3,127 | 2,524 |
Other assets: | |||
Goodwill | 3,006 | 2,519 | |
Other intangibles, net | 1,060 | 817 | |
Non-current deferred tax asset | 49 | 66 | |
Other Assets, Noncurrent | 349 | 268 | |
Total assets | 10,507 | 9,112 | |
Current liabilities: | |||
Debt, Current | 31 | 75 | |
Accounts payable | 421 | 385 | |
Other accrued liabilities | 620 | 736 | |
Total current liabilities | 1,072 | 1,196 | |
Long-term Debt and Finance Lease Obligations | 4,171 | 3,166 | |
Pension liability | 103 | 137 | |
Non-current deferred tax liability | 202 | 164 | |
Other liabilities | 164 | 175 | |
Commitment and contingencies (see Note 14) | |||
Total liabilities | 5,712 | 4,838 | |
Redeemable Preferred Stock Outstandings | 0 | 359 | |
Common Stock, Value, Outstanding | 2 | 2 | |
Preferred Stock, Value, Outstanding | 0 | 0 | |
Additional paid in capital | 4,649 | 4,205 | |
Accumulated deficit | 538 | 25 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax | (394) | (317) | |
Total shareholders’ equity | 4,795 | 3,915 | |
Total liabilities, redeemable preferred stock, and shareholders’ equity | $ 10,507 | $ 9,112 | |
[1]Long-lived assets include property, plant, and equipment, net of accumulated depreciation. |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) | Jun. 30, 2022 | Jun. 30, 2021 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (usd per share) | $ 0.01 | $ 0.01 |
Common Stock, Shares Authorized | 1,000,000,000 | 1,000,000,000 |
Common stock, shares issued (shares) | 179,302,032 | 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 & Outstanding | 384,777 | 650,000 |
Preferred Stock, Shares Issued | 384,777 | 650,000 |
Accounts Receivable, Allowance for Credit Loss, Current | $ 29,000,000 | $ 12,000,000 |
Consolidated Statement of Chang
Consolidated Statement of Changes in Shareholder's Equity - USD ($) $ in Millions | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit | Accumulated Other Comprehensive (Loss)/Income [Member] |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Redeemable Preferred Stock Outstandings | $ 607 | ||||
Common Stock, Shares, Outstanding | 145,738,000 | ||||
Beginning Balance at Jun. 30, 2019 | 1,682 | $ 2 | $ 2,757 | $ (723) | $ (354) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock Issued During Period, Value, New Issues | 1,042 | 0 | 1,042 | ||
Stock Issued During Period, Value, Stock Options Exercised | 0 | 0 | |||
Equity compensation | 48 | 48 | |||
Payments Related to Tax Withholding for Share-based Compensation | (32) | (32) | |||
Equity issued in lieu of cash consideration | 3 | 3 | |||
Dividends, Preferred Stock | (33) | (33) | |||
Net Income (Loss) Attributable to Parent | 221 | 221 | |||
Other comprehensive income /(loss), net of tax | (32) | (32) | |||
Ending Balance at Jun. 30, 2020 | 2,899 | $ 2 | 3,818 | (535) | (386) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Redeemable Preferred Stock Outstandings | 607 | ||||
Common Stock, Shares, Outstanding | 162,788,000 | ||||
Stock Issued During Period, Value, New Issues | 82 | $ 0 | 82 | ||
Stock Issued During Period, Value, Stock Options Exercised | 0 | 0 | |||
Stock Issued During Period, Value, Conversion of Convertible Securities | 253 | 253 | |||
Equity compensation | 51 | 51 | |||
Payments Related to Tax Withholding for Share-based Compensation | (46) | (46) | |||
APIC, Share-based Payment Arrangement, Option, Increase for Cost Recognition | 38 | 38 | |||
APIC, Share-based Payment Arrangement, ESPP, Increase for Cost Recognition | 9 | 9 | |||
Dividends, Preferred Stock | (25) | (25) | |||
Net Income (Loss) Attributable to Parent | 585 | 585 | |||
Other comprehensive income /(loss), net of tax | 69 | 69 | |||
Ending Balance at Jun. 30, 2021 | 3,915 | $ 2 | 4,205 | 25 | (317) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Temporary Equity, Carrying Amount, Period Increase (Decrease) | (248) | ||||
Stock Issued During Period, Shares, Conversion of Convertible Securities | 5,392,000 | ||||
Redeemable Preferred Stock Outstandings | 359 | ||||
Common Stock, Shares, Outstanding | 170,549,000 | ||||
Stock Issued During Period, Value, Stock Options Exercised | 0 | $ 0 | |||
Stock Issued During Period, Value, Conversion of Convertible Securities | 362 | 362 | |||
Equity compensation | 54 | 54 | |||
Payments Related to Tax Withholding for Share-based Compensation | (10) | (10) | |||
APIC, Share-based Payment Arrangement, Option, Increase for Cost Recognition | 26 | 26 | |||
APIC, Share-based Payment Arrangement, ESPP, Increase for Cost Recognition | 12 | 12 | |||
Dividends, Preferred Stock | (6) | (6) | |||
Net Income (Loss) Attributable to Parent | 519 | 519 | |||
Other comprehensive income /(loss), net of tax | (77) | (77) | |||
Ending Balance at Jun. 30, 2022 | 4,795 | $ 2 | $ 4,649 | $ 538 | $ (394) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Temporary Equity, Carrying Amount, Period Increase (Decrease) | (359) | ||||
Stock Issued During Period, Shares, Conversion of Convertible Securities | 7,818,000 | ||||
Redeemable Preferred Stock Outstandings | $ 0 | ||||
Common Stock, Shares, Outstanding | 179,302,000 |
Consolidated Statement of Cha_2
Consolidated Statement of Changes in Shareholder's Equity - Shares of Common Stock | Common Stock [Member] shares |
Beginning Balance - Common Stock Outstanding (shares) at Jun. 30, 2019 | 145,738,000 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |
Stock Issued During Period, Shares, New Issues | 16,196,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 854,000 |
Ending Balance - Common Stock Outstanding (shares) at Jun. 30, 2020 | 162,788,000 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |
Stock Issued During Period, Shares, New Issues | 1,163,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 1,206,000 |
Stock Issued During Period, Shares, Conversion of Convertible Securities | 5,392,000 |
Ending Balance - Common Stock Outstanding (shares) at Jun. 30, 2021 | 170,549,000 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 935,000 |
Stock Issued During Period, Shares, Conversion of Convertible Securities | 7,818,000 |
Ending Balance - Common Stock Outstanding (shares) at Jun. 30, 2022 | 179,302,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | ||
Effect of Exchange Rate on Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents, Continuing Operations | $ (33,000,000) | $ 17,000,000 | $ (7,000,000) | |
Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents | 449,000,000 | 896,000,000 | 953,000,000 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||
Net earnings | 519,000,000 | 585,000,000 | 221,000,000 | |
Adjustments to reconcile earnings from continued operations to net cash from operations: | ||||
Depreciation and Amortization | 378,000,000 | 289,000,000 | 254,000,000 | |
Foreign Currency Transaction Gain (Loss), before Tax | 30,000,000 | (4,000,000) | 2,000,000 | |
Amortization and write-off of debt financing costs | 7,000,000 | 11,000,000 | 12,000,000 | |
Gain (Loss) on Sale of Assets and Asset Impairment Charges | (31,000,000) | (9,000,000) | (5,000,000) | |
Disposal Group, Not Discontinued Operation, Gain (Loss) on Disposal | [1] | (1,000,000) | (182,000,000) | 1,000,000 |
Financing fees paid | 4,000,000 | 18,000,000 | 10,000,000 | |
Derivative, Gain (Loss) on Derivative, Net | (2,000,000) | (17,000,000) | (3,000,000) | |
Equity compensation | 54,000,000 | 51,000,000 | 48,000,000 | |
Provision/(benefit) for deferred income taxes | 14,000,000 | 64,000,000 | 2,000,000 | |
Provision for bad debts and inventory | 17,000,000 | 41,000,000 | 10,000,000 | |
Change in operating assets and liabilities: | ||||
(Increase)/decrease in trade receivables | (73,000,000) | (186,000,000) | (151,000,000) | |
(Increase)/decrease in inventories | (128,000,000) | (260,000,000) | (76,000,000) | |
Increase/(decrease) in accounts payable | 37,000,000 | 50,000,000 | 72,000,000 | |
Other assets/accrued liabilities, net - current and non-current | (448,000,000) | (36,000,000) | 33,000,000 | |
Net Cash Provided by (Used in) Operating Activities, Total | 439,000,000 | 433,000,000 | 440,000,000 | |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||
Capital expenditures | (660,000,000) | (686,000,000) | (466,000,000) | |
Payments to Acquire Debt Securities, Available-for-sale | (20,000,000) | (72,000,000) | 0 | |
Settlement on from sale of subsidiaries | (3,000,000) | |||
Proceeds from Divestiture of Interest in Consolidated Subsidiaries | 287,000,000 | 21,000,000 | ||
Payment for acquisitions, net of cash acquired | (1,199,000,000) | (147,000,000) | (379,000,000) | |
Payments to Acquire Investments | 2,000,000 | 31,000,000 | 3,000,000 | |
Net cash (used in) investing activities | (1,884,000,000) | (649,000,000) | (827,000,000) | |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||
Proceeds from borrowing, net | 1,100,000,000 | 166,000,000 | 909,000,000 | |
Repayments of Long-term Debt | (78,000,000) | (67,000,000) | (860,000,000) | |
Payments of Debt Issuance Costs | (15,000,000) | (19,000,000) | (25,000,000) | |
Dividends and Interest Paid | 4,000,000 | 22,000,000 | 36,000,000 | |
Proceeds from Issuance of Common Stock | 0 | 82,000,000 | 1,046,000,000 | |
Proceeds from Stock Options Exercised | 26,000,000 | 38,000,000 | 0 | |
Payments Related to Tax Withholding for Share-based Compensation | (10,000,000) | (46,000,000) | (32,000,000) | |
Proceeds from (Payments for) Other Financing Activities | 12,000,000 | 10,000,000 | 0 | |
Net cash provided by/(used in) financing activities | 1,031,000,000 | 142,000,000 | 1,002,000,000 | |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect | (447,000,000) | (57,000,000) | 608,000,000 | |
CASH AND EQUIVALENTS AT BEGINNING OF PERIOD | 896,000,000 | |||
CASH AND EQUIVALENTS AT END OF PERIOD | 449,000,000 | 896,000,000 | ||
SUPPLEMENTARY CASH FLOW INFORMATION: | ||||
Interest paid | 116,000,000 | 105,000,000 | 98,000,000 | |
Income taxes paid, net | 53,000,000 | 47,000,000 | 43,000,000 | |
SUPPLEMENTARY DISCLOSURE OF NON-CASH INVESTING ACTIVITY: | ||||
Stock Issued During Period, Value, Conversion of Convertible Securities | 362,000,000 | 253,000,000 | 0 | |
Disposal Group, Including Discontinued Operation, Accounts, Notes and Loans Receivable, Net | 0 | 47,000,000 | 0 | |
Additional Paid-in Capital [Member] | ||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||
Payments Related to Tax Withholding for Share-based Compensation | $ (10,000,000) | $ (46,000,000) | $ (32,000,000) | |
[1]Gain on sale of subsidiary for the fiscal years ended June 30, 2022 and 2021 is affiliated with the sale of the Blow-Fill-Seal Business. Loss on sale of subsidiary for the fiscal year ended June 30, 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 | 12 Months Ended |
Jun. 30, 2022 | |
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 ( “PTS Intermediate ” ). PTS Intermediate directly and wholly owns Catalent Pharma Solutions, Inc. ( “ Operating Company ” ). The financial results of Catalent are primarily comprised of the financial results of Operating Company and its subsidiaries on a consolidated basis. Since the Company’s initial public offering in July 2014, its common stock, par value $0.01 (the “ Common Stock ” ) has traded on the New York Stock Exchange under the symbol “ CTLT ” . The Company provides differentiated development and manufacturing solutions for drugs, protein-based biologics, cell, and gene therapies, vaccines, and consumer health products at over fifty facilities across four continents under rigorous quality and operational standards. Its oral, injectable, and respiratory delivery technologies, along with its state-of-the-art protein, plasmid, viral, and cell and gene therapy manufacturing capacity address a wide and growing range of modalities and therapeutic and other categories across the biopharmaceutical and consumer health industries. Reporting Segments In fiscal 2022, the Company operated through four segments, each of which reported through a separate management team and ultimately to the Company's Chief Executive Officer, who was designated for fiscal 2022 as the Chief Operating Decision Maker for segment reporting purposes. The Company's fiscal 2022 operating segments were the same as its reporting segments. Immediately following the end of fiscal 2022, the Company announced a new operating structure with two operating and reporting segments: (1) Biologics and (2) Pharma and Consumer Health (see Note 20, Subsequent Events ). Set forth below is a summary description of the Company’s four fiscal 2022 segments. Biologics The Company’s Biologics segment provides development and manufacturing for protein, plasmid DNA (pDNA), mRNA, cell therapy, viral vaccines and viral-based gene therapies; formulation, development, and manufacturing for parenteral dose forms, including vials, prefilled syringes, and cartridges; and analytical development and testing services for large molecules, including bioassay, biophysical characterization, and current good manufacturing practices (“cGMP”) release and stability testing. Softgel and Oral Technologies Through its Softgel and Oral Technologies segment, the Company provides formulation, development, and manufacturing services for soft capsules, or “softgels,” as well as large-scale manufacturing of oral solid dose forms for pharmaceutical and consumer health markets, along with supporting ancillary services. Following the Company’s fiscal 2022 acquisition of Bettera Holdings, LLC (“Bettera Wellness”), it also provides formulation, development, and manufacturing of experiential dose forms for the delivery of dietary supplements and other nutraceuticals. Oral and Specialty Delivery The Company’s Oral and Specialty Delivery segment provides advanced analytical and formulation development and manufacturing across a range of technologies along with integrated downstream clinical development and commercial supply solutions. The technologies cover a broad range of oral (including its proprietary fast-dissolve Zydis tablets and many bioavailability enhancement technologies for both immediate and controlled-release tablets and capsules), respiratory and inhaled dose forms (including metered dose inhalers, dry powder inhalers, and nasal delivery devices). Clinical Supply Services The Company’s Clinical Supply Services segment provides manufacturing, packaging, storage, distribution, and inventory management for small-molecule drugs, protein-based biologics, and cell and gene therapies in clinical trials. It offers customers flexible solutions for clinical supplies production and provide distribution and inventory management support for both simple and complex clinical trials. This includes over-encapsulation where needed; supplying placebos, comparator drug procurement, and clinical packages and kits for physicians and patients; inventory management; investigator kit ordering and fulfillment; and return supply reconciliation and reporting. Basis of Presentation These financial statements include all of the Company’s subsidiaries, including those operating outside the United States ( “ U.S. ” ) and are prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”). All significant transactions among the Company’s subsidiaries and reporting segments have been eliminated, other than as noted. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires the Company's management to make estimates and assumptions that affect amounts reported in the financial statements and accompanying notes. Such estimates include, but are not limited to, revenue recognition including determining the transaction price and associated constraint on variable consideration, allowance for credit losses, inventory and long-lived asset valuation, goodwill and other intangible asset valuation and impairment, equity-based compensation, income taxes, derivative valuation, and pension plan asset and liability valuation. Actual amounts may differ from these estimated amounts. Reclassification Certain prior-period amounts were 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 outside the U.S. are generally measured using the local currency as the functional currency. Adjustments to translate the assets and liabilities of the foreign operations into U.S. dollars are accumulated as a component of other comprehensive income utilizing period-end exchange rates. Since July 2018, the Company has accounted for its Argentine operations as highly inflationary, but this status has not had a material effect on the consolidated financial statements. The currency fluctuation related to certain long-term inter-company loans where settlement is not planned or anticipated in the foreseeable future have been recorded within the cumulative translation adjustment, a component of other comprehensive income. In addition, the currency fluctuation associated with the portion of the Company’s euro-denominated debt designated as a net investment hedge is included as a component of other comprehensive income. Foreign currency transaction gains and losses calculated by utilizing weighted average exchange rates for the period are included in the statements of operations in “ other expense, net. ” Such foreign currency transaction gains and losses include inter-company loans that are repayable in the foreseeable future. Cash and Cash Equivalents All liquid investments purchased with original maturities of three months or less are considered cash equivalents. The carrying value of these cash equivalents approximates fair value. Allowance for Credit Losses Trade receivables, contract assets, and other amounts owed to the Company 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, aging of customer receivable balances, significant aspects of a geographic location's economic conditions, the current and anticipated future condition of the general economy and the industries in which the Company's primary customers operate. To the extent that the Company identifies that any individual customer's credit quality has deteriorated, the Company establishes allowances based on the individual risk characteristics of that 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. Concentrations of Credit Risk and Major Customers Concentration of credit risk, with respect to accounts receivable, is limited due to the large number of customers and their dispersion across different geographic areas. The customers are primarily concentrated in the pharmaceutical and consumer products industries. The Company does not normally require collateral or any other security to support credit sales. The Company performs ongoing credit evaluations of its customers’ financial conditions and maintains reserves for credit losses. Such losses historically have been within the Company’s expectations. For the fiscal year ended June 30, 2022, the Company had one customer that accounted for greater than 10% of its net revenue, which was primarily recorded in the Biologics segment. No single customer exceeded 10% of revenue during the fiscal years ended June 30, 2021, and 2020. As of June 30, 2021, the Company had one customer that accounted for approximately 15% or $155 million of its net trade receivable balances. No customer exceeded 10% of trade receivables as of June 30, 2022 or June 30, 2020. However, when considering aggregate trade receivable and contract asset values for significant customers as of June 30, 2022, the Company had one customer that accounted for approximately 14% of its aggregate trade receivable and contract asset values. Inventories Inventory is stated at the lower of cost or net realizable value, using the first-in, first-out ( “ FIFO ” ) method. The Company provides for cost adjustments for excess, obsolete, or slow-moving inventory based on changes in customer demand, technology developments or other economic factors. Inventory consists of costs associated with raw material, labor, and overhead. Goodwill The Company accounts for purchased goodwill and intangible assets with indefinite lives in accordance with Accounting Standards Codification (“ASC”) 350, Intangibles - Goodwill and Other . Under ASC 350, goodwill and intangible assets with indefinite lives are not amortized, but instead are tested for impairment at least annually. The Company performs an impairment evaluation of goodwill annually during the fourth quarter of its fiscal year or when circumstances otherwise indicate an evaluation should be performed. The evaluation may begin with a qualitative assessment for each reporting unit to determine whether it is more-likely-than-not that the fair value of the reporting unit is less than its carrying value. Factors considered in a qualitative assessment include, among other things, macroeconomic conditions, industry and market considerations, financial performance of the respective reporting unit and other relevant entity and reporting-unit specific considerations. If the qualitative assessment does not generate a positive response, or if no qualitative assessment is performed, a quantitative assessment, based upon discounted cash flows, is performed and requires management to estimate future cash flows, growth rates, and macroeconomic, industry, and market conditions. In fiscal 2022 and 2020, the Company proceeded immediately to the quantitative assessment, but in fiscal 2021, the Company began its impairment evaluation with the qualitative assessment. The evaluations performed in fiscal 2020, 2021, and 2022 resulted in no impairment charge. Based on its quantitative assessment conducted as of April 1, 2022, the Company determined for each reporting unit with goodwill that it was more likely than not that its respective fair value exceeded its carrying value, indicating there was no impairment. For more information regarding goodwill balances at June 30, 2022 , see Note 4, Goodwill . Property and Equipment and Other Definite-Lived Intangible Assets Property and equipment are stated at cost. Depreciation expense is computed using the straight-line method over the estimated useful lives of the assets, including leasehold improvements and finance lease right-of-use assets that are amortized over the shorter of their useful lives or the terms of the respective leases. The Company generally uses the following range of useful lives for its property and equipment categories: buildings and improvements—5 to 50 years; machinery and equipment—3 to 10 years; and furniture and fixtures—3 to 7 years. Depreciation expense was $255 million for the fiscal year ended June 30, 2022, $196 million for the fiscal year ended June 30, 2021, and $165 million for the fiscal year ended June 30, 2020. Depreciation expense includes amortization of assets related to financing leases. The Company charges repairs and maintenance costs to expense as incurred. The amount of capitalized interest for fiscal 2022, 2021 and 2020 was $15 million, $17 million, and $11 million, respectively. Intangible assets with finite lives, including customer relationships, core technology, patents, and trademarks, are amortized over their useful lives. The Company also capitalizes certain computer software and development costs in other intangibles, net, when incurred in connection with developing or obtaining computer software for internal use. Capitalized software costs are amortized over the estimated useful lives of the software, which generally range from 3 to 5 years. The Company evaluates the recoverability of its other long-lived assets, including amortizing intangible assets, if circumstances indicate impairment may have occurred pursuant to ASC 360, Property, Plant and Equipment . This analysis is performed by comparing the respective carrying values of the assets to the current and expected future cash flows, on an un-discounted basis, to be generated from such assets. If such analysis indicates that the carrying value of these assets is not recoverable, the carrying value of such assets is reduced to fair value through a charge to the consolidated statements of operations. Fair value is determined based on assumptions the Company believes marketplace participants would utilize and comparable marketplace information in similar arm’s length transactions. The Company recorded impairment charges related to definite-lived intangible assets and property, plant, and equipment of $31 million, $9 million, and $5 million for the fiscal years ended June 30, 2022, 2021, and 2020, respectively. Post-Retirement and Pension Plans The Company sponsors various retirement and pension plans, including defined benefit and defined contribution retirement plans. The measurement of the related benefit obligations and the net periodic benefit costs recorded each year are based upon actuarial computations, which require management’s judgment as to certain assumptions. These assumptions include the discount rates used in computing the present value of the benefit obligations and the net periodic benefit costs, the expected future rate of salary increases (for pay-related plans) and the expected long-term rate of return on plan assets (for funded plans). The Company uses the corridor approach to amortize actuarial gains and losses. The Company has elected to utilize an approach to estimate the service and interest components of net periodic benefit cost for benefit plans that discounts the individual expected cash flows using the applicable spot rates derived from the yield curve over the projected cash flow period. The expected long-term rate of return on plan assets is based on the target asset allocation and the average expected rate of growth for the asset classes invested. The average expected rate of growth is derived from a combination of historic returns, current market indicators, and the expected risk premium for each asset class. The Company uses a measurement date of June 30 for all its retirement and postretirement benefit plans. Derivative Instruments, Hedging Activities, and Fair Value Derivative Instruments and Hedging Activities The Company is exposed to certain risks arising from both its business operations and economic conditions. The Company principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Company manages economic risks, including interest-rate, liquidity, and credit risk primarily by managing the amount, sources, and duration of its debt funding and the use of derivative financial instruments. Specifically, the Company enters into derivative financial instruments from time to time to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the values of which are determined by interest rates. The Company’s derivative financial instruments are used to manage differences in the amount, timing, and duration of the Company’s known or expected cash receipts and its known or expected cash payments principally related to the Company’s borrowings. The Company does not net any of its derivative positions under master netting arrangements. Primarily, the Company is exposed to fluctuations in the euro-U.S. dollar exchange rate on its investments in foreign operations in Europe. While the Company does not actively hedge against changes in foreign currency, it has mitigated the exposure of investments in its European operations through a net-investment hedge by denominating a portion of its debt in euros. In addition, a portion of Operating Company's interest payment obligation on its U.S dollar-denominated term loans is exposed to interest rate variability. The Company has mitigated its exposure to this risk by entering into interest-rate swap agreements, which qualify for and are designated as cash-flow hedges. Also, as discussed in Note 9, Derivative Instruments and Hedging Activities , the Company determined that an aspect of the dividend-rate adjustment feature of the Company’s previously outstanding Series A Preferred Stock (as defined below, see Note 13, Equity, Redeemable Preferred Stock, and Accumulated Other Comprehensive Loss ) should be accounted for as a derivative liability. Fair Value The Company is required to measure certain assets and liabilities at fair value, either upon initial measurement or for subsequent accounting or reporting. The Company uses fair value extensively, including in the initial measurement of net assets acquired in a business combination and when accounting for and reporting on certain financial instruments. The Company estimates fair value using an exit price approach, which requires, among other things, that it determine the price that would be received to sell an asset or paid to transfer a liability in an orderly market. The determination of an exit price is considered from the perspective of market participants, considering the highest and best use of assets and, for liabilities, assuming the risk of non-performance will be the same before and after the transfer. A single estimate of fair value results from a complex series of judgments about future events and uncertainties and relies heavily on estimates and assumptions. When estimating fair value, depending on the nature and complexity of the assets or liability, the Company may use one or all of the following approaches: • Market approach, which is based on market prices and other information from market transactions involving identical or comparable assets or liabilities. • Cost approach, which is based on the cost to acquire or construct comparable assets less an allowance for functional and/or economic obsolescence. • Income approach, which is based on the present value of the future stream of net cash flows. Certain investments that are measured at fair value using the net asset value ( “ NAV ” ) per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. 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. For available-for-sale debt securities in an unrealized loss position, the Company assesses whether it intends to sell or if it is more likely than not that the Company will be required to sell the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to fair value. If the criteria are not met, the Company evaluates whether the decline in fair value has resulted from a credit loss or other factors. In making this assessment, management considers, among other factors, the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency, and adverse conditions specifically related to the security. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of the cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses is recorded for the credit loss, limited by the amount that the fair value is less than the amortized costs basis. The Company classifies its marketable securities as available-for-sale, because it 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. 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. As of June 30, 2022, the amortized cost basis of marketable securities approximates fair value and all outstanding marketable securities mature within one year. Self-Insurance The Company is partially self-insured for certain employee health benefits and partially self-insured for property losses and casualty claims. The Company accrues for losses based upon experience and actuarial assumptions, including provisions for losses incurred but not reported. Accumulated Other Comprehensive Loss Accumulated other comprehensive loss, which is reported in the accompanying consolidated statements of changes in shareholders’ equity, consists of foreign currency translation, net change in marketable securities, and defined benefit pension plan changes. Research and Development Costs The Company expenses research and development costs as incurred. Research and development costs amounted to $23 million, $21 million, and $21 million for the fiscal years ended June 30, 2022, 2021, and 2020, respectively. Earnings Per Share The Company reports net earnings per share in accordance with ASC 260, Earnings per Share . The Company computes basic earnings per share for the Common Stock using the two-class method by d ividing net income attributable to common stockholders by the weighted average number of common shares outstanding during the period. The Series A Preferred Stock, due to its convertible feature, was participating in nature; accordingly, the outstanding shares of Series A Preferred Stock were included in the two-class method. Diluted earnings per common share measures the performance of the Company over the reporting period while giving effect to all potential shares of Common Stock that were dilutive and outstanding during the period. The denominator includes the weighted average over the measurement period of the sum of the number of shares of Common Stock outstanding and the number of additional such shares that would have been outstanding if the shares of Common Stock that were both potentially issuable and dilutive had been issued, and is calculated using the more dilutive of the two-class, treasury stock, and if-converted methods. Income Taxes In accordance with ASC 740, Income Taxes, the Company accounts for income taxes using the asset and liability method. The asset and liability method requires recognition of deferred tax assets and liabilities for expected future tax consequences of temporary differences that currently exist between tax bases and financial reporting bases of the Company’s assets and liabilities. The Company measures deferred tax assets and liabilities using enacted tax rates in the respective jurisdictions in which it operates. In assessing the ability to realize deferred tax assets, the Company considers whether it is more likely than not that the Company will be able to realize some or all of the deferred tax assets. The calculation of the Company’s tax liabilities involves dealing with uncertainties in the application of complex tax regulations in each of its tax jurisdictions. The number of years with open tax audits varies by tax jurisdiction. A number of years may lapse before a particular matter is audited and finally resolved. The Company applies ASC 740 to determine the accounting for uncertain tax positions. This standard prescribes a minimum recognition threshold a tax position is required to meet before the Company may recognize the position in its financial statements. The standard also provides guidance on derecognition, measurement, classification, interest and penalties, accounting in interim periods, and disclosure. The Company previously elected not to reclassify the income tax effects stranded in accumulated other comprehensive income to retained earnings. Stock-Based Compensation The Company accounts for its stock-based compensation in accordance with ASC 718, Compensation—Stock Compensation. Under ASC 718, companies recognize compensation expense using a fair-value-based method for costs related to share-based payments, including stock options and restricted stock units. The expense is measured based on the grant date fair value of the awards, and the expense is recorded over the applicable requisite service period. Forfeitures are recognized as and when they occur. In the absence of an observable market price for a share-based award, the fair value is based upon a valuation methodology that takes into consideration various factors, including the exercise price of the award, the expected term of the award, the current price of the underlying shares, the expected volatility of the underlying share price, the expected dividends on the underlying shares and the risk-free interest rate. The terms of the Company’s stock-based compensation plans permit an employee holding vested stock options or restricted stock units to elect to have the Company use a portion of the shares otherwise issuable upon the employee’s exercise of the option or grant, a so-called “ net settlement transaction, ” as a means of paying the exercise price, meeting tax withholding requirements, or both. Recent Financial Accounting Standards Recently Adopted Accounting Standards In December 2019, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“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 change in tax laws or rates. The Company adopted the guidance on July 1, 2021. The adoption of this standard did not have a material impact on the Company’s consolidated financial statements. In August 2018, the FASB issued ASU 2018-14, Compensation—Retirement Benefits—Defined Benefit Plans—General (Subtopic 715-20): Disclosure Framework—Changes to the Disclosure Requirements for Defined Benefit Plan , which removes certain disclosures and added additional disclosures around weighted-average interest crediting rates for cash balance plans and explanation for significant gains and losses related to change in the benefit obligation for the period. The Company adopted the guidance on July 1, 2021. The adoption of this standard did not have a material impact on the Company’s consolidated financial statements. New Accounting Standards Not Adopted as of June 30, 2022 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, |
Goodwill
Goodwill | 12 Months Ended |
Jun. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | GOODWILL The following table summarizes the changes from June 30, 2020 to June 30, 2021 and then to June 30, 2022 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 $ 1,463 $ 505 $ 355 $ 148 $ 2,471 Additions (1) 54 — 2 — 56 Divestitures (2) — — (54) — (54) Foreign currency translation adjustments 14 11 13 8 46 Balance at June 30, 2021 1,531 516 316 156 2,519 Additions (3) 41 531 — — 572 Foreign currency translation adjustments (37) (24) (15) (9) (85) Balance at June 30, 2022 $ 1,535 $ 1,023 $ 301 $ 147 $ 3,006 (1) The additions to goodwill arise from the Skeletal (Biologics), Delphi (Biologics) and Acorda (Oral and Specialty Delivery) transactions. For further details, see Note 3, Business Combinations and Divestitures . (2) Represents goodwill associated with the divestiture of the Blow-Fill-Seal Business. (3) The additions to goodwill arise from the Bettera Wellness (Softgel and Oral Technologies), Princeton (Biologics), RheinCell (Biologics), and Delphi (Biologics) acquisitions. For further details, see Note 3, Business Combinations and Divestitures . |
Definite Lived Long-Lived Asset
Definite Lived Long-Lived Assets | 12 Months Ended |
Jun. 30, 2022 | |
Finite lived intangible assets disclosure [Abstract] | |
Definite Lived Long-Lived Assets | OTHER INTANGIBLES, NET The details of other intangible assets subject to amortization as of June 30, 2022 and June 30, 2021 are as follows (in millions): June 30, 2022 Weighted Average Life Gross Carrying Value Accumulated Amortization Net Carrying Value Amortized intangibles: Core technology 11 years $ 480 $ (121) $ 359 Customer relationships 13 years 1,020 (366) 654 Product relationships 8 years 239 (204) 35 Other 4 years 24 (12) 12 Total other intangibles $ 1,763 $ (703) $ 1,060 June 30, 2021 Weighted Average Life Gross Carrying Value Accumulated Amortization Net Carrying Value Amortized intangibles: Core technology 19 years $ 140 $ (94) $ 46 Customer relationships 14 years 1,024 (306) 718 Product relationships 11 years 281 (237) 44 Other 5 years 17 (8) 9 Total other intangibles $ 1,462 $ (645) $ 817 Amortization expense was $123 million, $93 million, and $89 million for the fiscal years ended June 30, 2022, 2021, and 2020, respectively. Future amortization expense for the next five fiscal years is estimated to be: (Dollars in millions) 2023 2024 2025 2026 2027 Thereafter Total Amortization $ 132 $ 131 $ 129 $ 121 $ 105 $ 442 $ 1,060 |
Restructuring and Other Costs
Restructuring and Other Costs | 12 Months Ended |
Jun. 30, 2022 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Other Costs | RESTRUCTURING COSTS From time to time, the Company has implemented plans to restructure certain operations, both domestically and internationally. The restructuring plans focused on various aspects of operations, including closing and consolidating certain manufacturing operations, rationalizing headcount and aligning operations in a strategic and more cost-efficient structure. In addition, the Company may incur restructuring charges in the future in cases where a material change in the scope of operation with its business occurs. Employee-related costs consist primarily of severance costs and also include outplacement services provided to employees who have been involuntarily terminated and duplicate payroll costs during transition periods. Facility exit and other costs consist of accelerated depreciation, equipment relocation costs, and costs associated with planned facility closures to streamline Company operations. During the fiscal year ended June 30, 2022, no material restructuring plan was adopted. During the fiscal year ended June 30, 2021, the Company adopted a plan to reduce costs and optimize its infrastructure in Europe by closing its Clinical Supply Services facility in Bolton, U.K. In connection with this restructuring plan, the Company reduced its headcount by approximately 170 employees and incurred cumulative charges of $10 million, primarily associated with employee severance benefits. For the fiscal year ended June 30, 2022, restructuring charges associated with the Bolton facility closure were $3 million. Restructuring costs for the fiscal years ended June 30, 2022, 2021, and 2020 were recorded in Other Operating Expense in the Consolidated Statement of Operations. The following table summarizes the costs recorded within restructuring costs: Fiscal Year Ended June 30, (Dollars in millions) 2022 2021 2020 Restructuring costs: Employee-related reorganization $ 9 $ 8 $ 6 Facility exit and other costs 1 2 — Total restructuring costs $ 10 $ 10 $ 6 |
Long-Term Obligations and Other
Long-Term Obligations and Other Short-Term Borrowings | 12 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
Long-Term Obligations and Other Short-Term Borrowings | 0.2506 |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 12 Months Ended |
Jun. 30, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities | DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES Risk Management Objective of Using Derivatives The Company is exposed to fluctuations in the currency exchange rates applicable to its investments in foreign operations. While the Company does not actively hedge against changes in foreign currency, the Company has mitigated the exposure arising from its investments in its European operations by denominating a portion of its Senior Notes in euros. At June 30, 2022, the Company had euro-denominated debt outstanding of $874 million (U.S. dollar equivalent), which qualifies as a hedge of a net investment in foreign operations. For non-derivatives designated and qualifying as net investment hedges, the effective portion of the translation gains or losses are reported in accumulated other comprehensive income (loss) as part of the cumulative translation adjustment. The unhedged portions of the translation gains or losses are reported in the consolidated statements of operations. The following table includes net investment hedge activity during the fiscal years ended June 30, 2022 and 2021, respectively: (Dollars in millions) June 30, 2022 June 30, 2021 Unrealized foreign exchange gain (loss) within Other Comprehensive Income $ 121 $ (56) Unrealized foreign exchange loss within the Consolidated Statements of Operations $ (11) $ (3) The net accumulated gain of this net investment hedge within accumulated other comprehensive loss was $127 million as of June 30, 2022. Amounts are reclassified out of accumulated other comprehensive loss into earnings when the entity in which the gains and losses reside is either sold or substantially liquidated. Preferred Stock Derivative Liability As discussed in Note 13, 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 million after taking into account the $4 million issuance cost. The dividend rate used to determine the amount of the quarterly dividend payable on shares of the Series A Preferred Stock was 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. 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 $9 million, of which $4 million was related to the converted portion of the outstanding shares of Series A Preferred Stock. The remainder of the derivative liability was settled on the Final Conversion Date due to the Final Conversion. The fair value of the derivative liability as of the Final Conversion Date was $1 million. See Note 13, Equity, Redeemable Preferred Stock, and Accumulated Other Comprehensive Loss for details of the Partial Conversion. 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 executing the Fifth Amendment, the Company settled the April 2020 interest-rate swap agreement with Bank of America N.A. The Company paid $2 million in cash to Bank of America N.A to settle the interest-rate swap agreement. This fiscal 2021 loss was deferred in shareholders’ equity as a component of accumulated other comprehensive loss, net of tax, and amortized as an adjustment to interest expense, net over the original term of the Company’s U.S dollar-denominated term loans repaid in February 2021 in connection with the Fifth Amendment. 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 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. A summary of the estimated fair value of the interest-rate swap reported in the consolidated balance sheets is stated in the table below: June 30, 2022 June 30, 2021 (in millions) Balance Sheet Classification Estimated Fair Value Balance Sheet Classification Estimated Fair Value Interest-rate swap Other long-term assets $ 36 Other long-term assets $ 2 |
Fair Value Measures and Disclos
Fair Value Measures and Disclosures | 12 Months Ended |
Jun. 30, 2022 | |
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 June 30, 2022 and 2021, respectively: (Dollars in millions) Basis of Fair Value Measurement June 30, 2022 Total Level 1 Level 2 Level 3 Assets: Marketable securities $ 89 $ 89 $ — $ — Interest-rate swap 36 — 36 — Trading securities $ 2 $ 2 $ — $ — June 30, 2021 Assets: Marketable securities $ 71 $ 71 $ — $ — Interest-rate swap 2 — 2 — Trading securities $ 1 $ 1 $ — $ — Liabilities: Series A Preferred Stock derivative liability $ 3 $ — $ — $ 3 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 derivative associated with the formerly outstanding Series A Preferred Stock was determined using an option pricing methodology, specifically both a Monte Carlo simulation and a binomial lattice model. The methodology incorporated 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 was 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 was 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, 2021 to June 30, 2022: ( Dollars in millions) Fair Value Measurement of Balance at June 30, 2021 $ 3 Change in estimated fair value of Series A Preferred Stock derivative liability (2) Settlement of derivative liability upon Final Conversion (1) Balance at June 30, 2022 $ — 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 , there was no non-recurring fair value measurement during the fiscal years ended June 30, 2022 and 2021. |
Employee Retirement Benefit Pla
Employee Retirement Benefit Plans | 12 Months Ended |
Jun. 30, 2022 | |
Retirement Benefits [Abstract] | |
Employee Retirement Benefit Plans | EMPLOYEE RETIREMENT BENEFIT PLANS The Company sponsors various retirement plans, including defined benefit pension plans and defined contribution plans. Substantially all of the Company’s domestic non-union employees are eligible to participate in employer-sponsored retirement savings plans, which include plans created under Section 401(k) of the Internal Revenue Code that provide for the Company to match a portion of contributions by participating U.S. employees. The Company’s contributions to the plans are discretionary but are subject to certain minimum requirements as specified in the plans. The Company uses a measurement date of June 30 for all of its retirement and postretirement benefit plans. The Company records obligations related to its withdrawal from one multi-employer pension plan that covered former employees at three former sites. This withdrawal was classified as a mass withdrawal under the Multiemployer Pension Plan Amendments Act of 1980, as amended, and the Pension Protection Act of 2006 and resulted in the recognition of liabilities associated with the Company’s long-term obligations in prior years not presented, which were primarily recorded as an expense within discontinued operations. The estimated discounted value of the projected contributions related to these plans is $38 million as of June 30, 2022 and 2021. The annual cash impact associated with the Company’s long-term obligation arising from this plan is $2 million per year. The following table provides a reconciliation of the change in projected benefit obligation and fair value of plan assets for the defined benefit retirement and other retirement plans, excluding the multi-employer pension plan liability: Retirement Benefits Other Post-Retirement Benefits June 30, June 30, (Dollars in millions) 2022 2021 2022 2021 Accumulated Benefit Obligation $ 262 $ 364 $ 2 $ 2 Change in Benefit Obligation Benefit obligation at beginning of year 372 358 2 3 Company service cost 4 4 — — Interest cost 5 4 — — Settlements (1) — — — Benefits paid (9) (13) — (1) Actuarial (gain) loss (1) (71) (9) — — Exchange rate (loss) gain (32) 28 — — Benefit obligation at end of year $ 268 $ 372 $ 2 $ 2 Change in Plan Assets Fair value of plan assets at beginning of year 318 295 — — Actual return on plan assets (50) (1) — — Company contributions 10 11 — — Settlements (1) — — — Benefits paid (9) (13) — — Exchange rate gain (loss) (28) 26 — — Fair value of plan assets at end of year $ 240 $ 318 $ — $ — Funded Status Funded status at end of year (28) (54) (2) (2) Net pension liability $ (28) $ (54) $ (2) $ (2) (1) For the fiscal year ended June 30, 2022, the actuarial gain is driven by a large increase in the aggregate discount rate. The following table provides a reconciliation of the net amount recognized in the consolidated balance sheets: Retirement Benefits Other Post-Retirement Benefits June 30, June 30, (Dollars in millions) 2022 2021 2022 2021 Amounts Recognized in Statement of Financial Position Noncurrent assets $ 37 $ 43 $ — $ — Current liabilities (1) (1) — — Noncurrent liabilities (64) (96) (2) (2) Total liability (28) (54) (2) (2) Amounts Recognized in Accumulated Other Comprehensive Loss Prior service cost (1) (1) — — Net loss (gain) 49 62 (1) (1) Total accumulated other comprehensive loss (income) at the end of the fiscal year 48 61 (1) (1) Additional Information for Plan with ABO or PBO in Excess of Plan Assets Projected benefit obligation 132 130 2 2 Accumulated benefit obligation 128 124 2 2 Fair value of plan assets 67 32 — — Components of Net Periodic Benefit Cost Service cost 4 4 — — Interest cost 5 4 — — Expected return on plan assets (10) (11) — — Amortization of unrecognized: Net loss 2 3 — — Net periodic benefit cost $ 1 $ — $ — $ — Retirement Benefits Other Post-Retirement Benefits June 30, June 30, (Dollars in millions) 2022 2021 2022 2021 Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income Net gain arising during the year $ (14) $ — $ — $ — Exchange rate loss recognized during the year 1 — — — Total recognized in other comprehensive income $ (13) $ — $ — $ — Total Recognized in Net Periodic Benefit Cost and Other Comprehensive Income Total recognized in net periodic benefit cost and other comprehensive income $ (12) $ — $ — $ — Estimated Amounts to be Amortized from Accumulated Other Comprehensive Income into Net Periodic Benefit Cost Amortization of: Net loss $ 1 $ 3 $ — $ — Financial Assumptions Used to Determine Benefit Obligations at the Balance Sheet Date Discount rate (%) 3.6 % 1.6 % 4.0 % 2.0 % Rate of compensation increases (%) 2.7 % 2.0 % n/a n/a Financial Assumptions Used to Determine Net Periodic Benefit Cost for Financial Year Discount rate (%) 1.6 % 1.4 % 2.0 % 1.8 % Rate of compensation increases (%) 2.0 % 2.0 % n/a n/a Expected long-term rate of return (%) 3.4 % 3.6 % n/a n/a Expected Future Contributions Fiscal year 2023 $ 7 $ 8 $ — $ — Retirement Benefits Other Post-Retirement Benefits June 30, June 30, (Dollars in millions) 2022 2021 2022 2021 Expected Future Benefit Payments Financial year 2023 $ 14 $ 13 $ — $ — 2024 13 14 — — 2025 14 15 — — 2026 16 15 — — 2027 14 15 — — 2028-2032 $ 80 $ 84 $ 1 $ 1 Actual Asset Allocation (%) Equities 4.1 % 4.4 % — % — % Government bonds 35.6 % 30.6 % — % — % Corporate bonds 18.3 % 21.0 % — % — % Property 4.9 % 3.5 % — % — % Insurance contracts 12.0 % 9.6 % — % — % Other 25.1 % 30.9 % — % — % Total 100.0 % 100.0 % — % — % Actual Asset Allocation (Amount) Equities $ 10 $ 14 $ — $ — Government bonds 85 97 — — Corporate bonds 44 67 — — Property 12 11 — — Insurance contracts 29 31 — — Other 60 98 — — Total $ 240 $ 318 $ — $ — Target Asset Allocation (%) Equities 4.1 % 4.5 % — % — % Government bonds 35.6 % 30.5 % — % — % Corporate bonds 18.3 % 21.1 % — % — % Property 4.9 % 3.5 % — % — % Insurance contracts 12.0 % 9.6 % — % — % Other 25.1 % 30.8 % — % — % Total 100.0 % 100.0 % — % — % The Company's Investment Committee employs a building-block approach in determining the long-term rate of return for plan assets, with proper consideration of diversification and rebalancing. Historical markets are studied and long-term historical relationships between equities and fixed income are preserved consistent with the widely accepted capital market principle that assets with higher volatility generate a greater return over the long run. Current market factors such as inflation and interest rates are evaluated before long-term capital market assumptions are determined. Peer data are reviewed to check for reasonability and appropriateness. Plan assets are recognized and measured at fair value in accordance with the accounting standards regarding fair value measurements. The following are valuation techniques used to determine the fair value of each major category of assets: • Short-term investments, equity securities, fixed-income securities, and real estate are valued using quoted market prices or other valuation methods, and thus are classified within Level 1 or Level 2. • Insurance contracts and other types of investments include investments with some observable and unobservable prices that are adjusted by cash contributions and distributions, and thus are classified within Level 2 or Level 3. The following tables provide a summary of plan assets that are measured at fair value as of June 30, 2022 and 2021, aggregated by the level in the fair value hierarchy within which those measurements fall: As of June 30, 2022 (dollars in millions) Level 1 Level 2 Level 3 Investments Measured at Net Asset Value Total Assets Equity securities $ — $ 10 $ — $ — $ 10 Debt securities — 129 — — 129 Real estate — 10 2 — 12 Other (1) — 64 25 — 89 Total $ — $ 213 $ 27 $ — $ 240 (1) Other as of June 30, 2022, included $35 million of investments in hedge funds related to the Company's U.K. pension plan, which were classified as Level 2. As of June 30, 2021 (dollars in millions) Level 1 Level 2 Level 3 Investments Measured at Net Asset Value Total Assets Equity securities $ — $ 14 $ — $ — $ 14 Debt securities — 164 — — 164 Real estate — 11 — — 11 Other (1) — 106 23 — 129 Total $ — $ 295 $ 23 $ — $ 318 (1) Other as of June 30, 2021, included $62 million of investments in hedge funds related to the Company's U.K. pension plan, which were classified as Level 2. Level 3 other assets as of June 30, 2022 and 2021 consist of an insurance contract in the U.K. to fulfill the benefit obligations for a portion of the participant benefits. The value of this commitment is determined using the same assumptions and methods used to value the pension liability of the associated plan. Level 3 other assets for the same periods also include the partial funding of a pension liability relating to current and former employees of the Company’s Eberbach, Germany facility through a Company promissory note with an annual rate of interest of 5%. The value of this commitment fluctuates due to contributions and benefit payments in addition to loan interest. The following table provides a reconciliation of the beginning and ending balances of Level 3 assets as well as the changes during the period attributable to assets held and those purchases, sales, settlements, contributions, and benefits that were paid: Fair Value Measurement Using Significant Unobservable Inputs Total (Level 3) Fair Value Measurement Using Significant Unobservable Inputs Insurance Contracts Fair Value Measurement Using Significant Unobservable Inputs Other Total (Level 3) (Dollars in millions) Beginning Balance at June 30, 2021 $ 23 $ 3 $ 20 Actual return on plan assets: Relating to assets still held at the reporting date (2) — (2) Purchases, sales, settlements, contributions and benefits paid (5) (3) (2) Transfers in or out of Level 3, net 11 9 2 Ending Balance at June 30, 2022 $ 27 $ 9 $ 18 The Company's investment policy reflects the long-term nature of the plans’ funding obligations. The assets are invested to provide the opportunity for both income and growth of principal. This objective is pursued as a long-term goal designed to provide required benefits for participants without undue risk. It is expected that this objective can be achieved through a well-diversified asset portfolio. All equity investments are made within the guidelines of quality, marketability, and diversification mandated by the Employee Retirement Income Security Act of 1974, as amended (for plans subject to the act) and other relevant legal requirements. Investment managers are directed to maintain equity portfolios at a risk level approximately equivalent to that of the specific benchmark established for that portfolio. Assets invested in fixed income securities and pooled fixed-income portfolios are managed actively to pursue opportunities presented by changes in interest rates, credit ratings, or maturity premiums. Other Post-Retirement Benefits Assumed Healthcare Cost Trend Rates at the Balance Sheet Date 2022 2021 Healthcare cost trend rate – initial (%) Pre-65 n/a n/a Post-65 4.6 % 7.3 % Healthcare cost trend rate – ultimate (%) Pre-65 n/a n/a Post-65 4.1 % 4.4 % Year in which ultimate rates are reached Pre-65 n/a n/a Post-65 2040 2035 |
Equity Based Compensation
Equity Based Compensation | 12 Months Ended |
Jun. 30, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Shareholders' Equity and Share-based Payments | STOCK-BASED COMPENSATION The Company’s stock-based compensation is comprised of stock options, restricted stock units, performance-based restricted stock units, and restricted stock. 2014 and 2018 Omnibus Incentive Plans In 2014, the Company’s board of directors adopted, and the holder of a majority of the shares approved, the 2014 Omnibus Incentive Plan (the “2014 Plan”). The 2014 Plan provided certain members of management, employees, and directors of the Company and its subsidiaries with the opportunity to obtain various incentives, including grants of stock options, restricted stock units (defined below), and restricted stock. In October 2018, the Company’s shareholders approved the 2018 Omnibus Incentive Plan (the “2018 Plan”), and, as a result, new awards may no longer be issued under the 2014 Plan, although it remains in effect as to any previously granted award. The 2018 Plan is substantially similar to the 2014 Plan, except that (a) a total of 15,600,000 shares of Common Stock (subject to adjustment) may be issued under the 2018 Plan, (b) each share of Common Stock issuable under the 2018 Plan pursuant to a restricted stock or restricted stock unit award will reduce the number of reserved shares by 2.25 shares, and (c) the 2018 Plan imposes a limit on the aggregate value of awards that may be made in a single year to a non-employee director. Both the 2014 Plan and the 2018 Plan permit “net settlement” of vested awards, pursuant to which the award holder forfeits a portion of the vested award to satisfy the purchase price (in the case of options), the holder’s withholding tax obligation, if any (in all cases), or both. Where the holder net-settles the tax obligation, the Company pays the amount of the withholding tax to the U.S. government in cash, which is accounted for as an adjustment to Additional Paid in Capital. Stock Compensation Expense Stock compensation expense recognized in the consolidated statements of operations was $54 million, $51 million, and $48 million in fiscal 2022, 2021, and 2020, respectively. Stock compensation expense is classified in selling, general, and administrative expenses as well as cost of sales. The Company has elected to account for forfeitures as they occur. Stock Options Stock options granted under the 2014 Plan or 2018 Plan, as applicable, during fiscal 2022, 2021, and 2020 represent approximately 183,000, 231,000, and 329,000 shares of Common Stock, respectively. Each stock option granted under the 2014 Plan or 2018 Plan vests in equal annual installments over a four-year period from the date of grant, contingent upon the participant’s continued employment with the Company, except for a small number of grants that vest based on the achievement of operating performance targets set forth in the award documents. Methodology and Assumptions All outstanding stock options have an exercise price per share equal to the fair market value of one share of Common Stock on the date of grant. All outstanding stock options have a contractual term of 10 years, subject to forfeiture under certain conditions upon separation of employment. The grant-date fair value is recognized as expense on a graded-vesting basis over the vesting period. The fair value of stock options is determined using the Black-Scholes-Merton option pricing model for service and performance-based awards, and an adaptation of the Black-Scholes-Merton option valuation model, which takes into consideration the internal rate of return thresholds, for market-based awards. This model adaptation is essentially equivalent to the use of a path dependent-lattice model. The weighted average of assumptions used in estimating the fair value of stock options granted during each year were as follows: Fiscal Year Ended June 30, 2022 2021 2020 Expected volatility 37% 27% 23 % - 24% Expected life (in years) 3.7 6.25 6.25 Risk-free interest rate 0.7% 0.3% 1.7 % - 1.9% Dividend yield None None None Public trading of the Common Stock commenced only in July 2014, and, as a result, there was only limited relevant historical volatility experience available; therefore, the expected volatility assumptions for fiscal year 2021 and 2020 were based on the historical volatility of the closing share prices of a comparable peer group. The Company selected peer companies from the pharmaceutical industry with similar characteristics, including market capitalization, number of employees and product focus. In addition, since the Company did not have a pattern of exercise behavior of option holders, for fiscal years 2021 and 2020, the Company used the simplified method to determine the expected life of each option, which is the mid-point between the vesting date and the end of the contractual term. Effective in fiscal year 2022, the expected volatility and expected holding period were based on the historical volatility and historical holding period of the Common Stock of the Company. The risk-free interest rate for the expected life of the option is based on the comparable U.S. Treasury yield curve in effect at the time of the grant. The weighted-average grant-date fair value of stock options in fiscal 2022, 2021, and 2020 was $32.07 per share, $24.36 per share, and $15.22 per share, respectively. The following table summarizes stock option activity and shares subject to outstanding options for the fiscal year ended June 30, 2022 : Time Weighted Average Exercise Price Number of Shares Weighted Average Contractual Term Aggregate Intrinsic Value Outstanding as of June 30, 2021 $ 49.77 1,280,174 4.92 $ 74,696,700 Granted 113.00 182,751 — — Exercised 42.11 386,456 — 29,329,353 Forfeited 39.43 17,559 — — Expired / Canceled 36.97 3,399 — — Outstanding as of June 30, 2022 63.74 1,055,511 6.91 47,013,454 Vest and expected to vest as of June 30, 2022 63.74 1,055,511 6.91 47,013,454 Vested and exercisable as of June 30, 2022 $ 43.80 437,034 5.76 $ 27,748,162 The intrinsic value of the options exercised in fiscal 2022 was $29 million. The total fair value of options vested during the period was $6 million. The intrinsic value of the options exercised in fiscal 2021 was $64 million. The total fair value of options vested during the period was $7 million. As of June 30, 2022, $2 million of unrecognized compensation cost related to granted and not forfeited stock options is expected to be recognized as expense over a weighted-average period of approximately 2.6 years. Restricted Stock and Restricted Stock Units The Company may grant to employees and members of its board of directors under the 2018 Plan (and formerly granted under the 2014 Plan) shares of restricted stock and units each representing the right to one share of Common Stock (“restricted stock units”). Since the IPO, the Company has granted to employees and directors restricted stock units and restricted stock that vest over specified periods as well as restricted stock units and restricted stock that have certain performance-related vesting requirements (“performance stock units” and “performance stock,” respectively). The restricted stock and restricted stock units granted during fiscal 2022 and 2021 had grant date fair values aggregating $57 million and $47 million, respectively, which represent approximately 535,000 and 502,000 shares of Common Stock, respectively. Under the 2014 Plan or 2018 Plan, as appropriate, the performance stock and performance stock units vest upon achieving Company financial performance metrics established at the outset of the three-year performance period associated with each grant. The metrics for the fiscal 2020, 2021, and 2022 performance stock and performance stock unit grants were based on performance against a mix of adjusted EPS targets and relative total shareholder return ( “ RTSR ” ) targets. Note that adjusted EPS is calculated as a quotient of tax-effected Adjusted EBITDA by the weighted average number of fully diluted shares, a financial measure that is not defined under U.S. GAAP and is subject to important limitations. The performance stock and performance stock units vest following the end of their respective three-year performance periods upon a determination of achievement relative to the targets. Each quarter during the period in which the performance stock and performance stock units are outstanding, the Company estimates the likelihood of such achievement by the end of the performance period in order to determine the probability of vesting. The number of shares actually earned at the end of the three-year period for the fiscal 2020, 2021 and 2022 grants will vary, based only on actual performance, from 0% to 200%, or from 0% to 150%, of the target number of performance stock or performance stock units specified on the date of grant, in the case of adjusted EPS and RTSR grants, respectively. Time-based restricted stock units and restricted stock generally vest on the second or third anniversary of the date of grant, subject to the participant’s continued employment with the Company. Methodology and Assumptions - Expense Recognition and Grant Date Fair Value The fair values of (a) time-based restricted stock units and restricted stock are recognized as expense on a cliff-vesting schedule over the applicable vesting period and (b) performance shares and performance share units are re-assessed quarterly as discussed above. The grant date fair values of both time-based and performance-based shares and units are determined based on the number of shares subject to the grants and the fair value of the Common Stock on the dates of the grants, as determined by the closing market prices. Time-Based Restricted Stock Units and Restricted Stock The following table summarizes activity in unvested time-based restricted stock units and restricted stock for the fiscal year ended June 30, 2022: Time-Based Units and Shares Weighted Average Grant-Date Fair Value Unvested as of June 30, 2021 764,356 $ 65.54 Granted 324,091 117.52 Vested 292,945 52.11 Cancelled/forfeited/adjusted 73,064 96.04 Unvested as of June 30, 2022 722,438 91.42 Adjusted EPS and RTSR-Based Performance Share Units and Performance Shares The following table summarizes activity in unvested performance share units and performance shares for the fiscal year ended June 30, 2022: Performance-Based Units and Shares Weighted Average Grant-Date Fair Value Target Number Unvested as of June 30, 2021 392,095 $ 58.16 Target Number Granted 103,946 113.57 Target Number Vested 168,325 43.84 Target Number Cancelled/forfeited/adjusted 21,970 88.57 Target Number Unvested as of June 30, 2022 305,746 $ 83.75 Valuation of RTSR Performance Shares and Performance Share Units The fair value of each RTSR performance share unit and performance share is determined using the Monte Carlo pricing model because the number of shares to be awarded is subject to a market condition. The Monte Carlo simulation is a generally accepted statistical technique used to simulate a range of possible future outcomes. Because the valuation model considers a range of possible outcomes, compensation cost is recognized regardless of whether the market condition is actually satisfied. The assumptions used in estimating the fair value of the RTSR performance share units and performance shares granted during each year were as follows: Fiscal Year Ended June 30, 2022 2021 Expected volatility 39 % - 41% 39 % - 42% Expected life (in years) 2.4 - 2.9 2.4 - 2.9 Risk-free interest rates 0.3 % - 1.5% 0.1 % - 0.2% Dividend yield None None The following table summarizes activity in unvested RTSR performance share units and performance shares for the fiscal year ended June 30, 2022 RTSR Units and Shares Weighted Average Grant-Date Fair Value Target Number Unvested as of June 30, 2021 327,028 $ 68.92 Target Number Granted 107,197 110.34 Target Number Vested 132,565 47.70 Target Number Cancelled/forfeited/adjusted 20,345 95.70 Target Number Unvested as of June 30, 2022 281,315 $ 91.04 |
Other Income _ Expense
Other Income / Expense | 12 Months Ended |
Jun. 30, 2022 | |
Other Income and Expenses [Abstract] | |
Other Income and Other Expense Disclosure | OTHER EXPENSE, NET The components of other expense, net for the fiscal years ended June 30, 2022, 2021, and 2020 are as follows: Fiscal Year Ended (Dollars in millions) 2022 2021 2020 Other (income) expense, net Debt refinancing costs (1) $ 4 $ 18 $ 16 Foreign currency losses (gains) (2) 33 5 (3) Other (3) (9) (20) (5) Total other expense, net $ 28 $ 3 $ 8 (1) Debt refinancing costs for the fiscal year ended June 30, 2022 consists of $4 million of financing charges related to the Company's Incremental Term B-3 Loans. Debt financing costs for the fiscal year ended June 30, 2021 includes (a) a write-off of $4 million of previously capitalized financing charges related to the Company’s repayment of U.S. dollar-denominated term loans and the 2026 Notes in February 2021, (b) $3 million of financing charges related to issuance of the Company’s initial tranche of Term B-3 Loans, and (c) an $11 million premium on early redemption of the 2026 Notes. Debt financing costs for the fiscal year ended June 30, 2020 includes (x) a write-off of $6 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 2024 Notes, and (y) a $10 million premium on early redemption of the 2024 Notes. (2) Foreign currency losses (gains) include both cash and non-cash transactions. |
Leases
Leases | 12 Months Ended |
Jun. 30, 2022 | |
Leases [Abstract] | |
Lessee, Finance Leases | LEASES The Company leases certain manufacturing and office facilities, land, vehicles, and equipment. The terms of these leases vary widely, although most have terms between 3 and 10 years. In accordance with ASC 842 , Leases , the Company recognizes a “right-of-use” asset and related lease liability at the commencement date of each lease based on the present value of the fixed lease payments over the expected lease term inclusive of any rent escalation provisions or incentives received. The lease term for this purpose will include any renewal period where the Company determines that it is reasonably certain that it will exercise the option to renew. While certain leases also permit the Company to terminate the lease in advance of the nominal term upon payment of an associated penalty, the Company generally does not take into account potential early termination dates in its determination of the lease term as it is reasonably certain not to exercise an early-termination option as of the lease commencement date. The Company uses its incremental borrowing rate, which represents the interest rate the Company would expect to pay on a collateralized basis to borrow an amount equal to the lease payments under similar terms, in order to calculate the present value of a lease, when the implicit discount rate for its leases is not readily determinable. For operating leases, fixed lease payments are recognized as operating lease expense on straight-line basis over the lease term. For finance leases, the Company recognizes depreciation expense associated with the leased asset acquired and interest expense related to the financing portion. Variable payments are recognized in the period incurred. As permitted by ASC 842, the Company has elected not to separate those components of a lease agreement not related to the leasing of an asset from those components that are related. The Company does not record leases with an initial lease term of 12 months or less on its consolidated balance sheets. The Company recognizes lease expense for these short-term leases on a straight-line basis over the lease term. Supplemental information concerning the leases recorded in the Company's consolidated balance sheet as of June 30, 2022 is detailed in the following table: (Dollars in millions) Line item in the consolidated balance sheet Balance at Right-of-use assets: Finance leases Property, plant, and equipment, net $ 178 Operating leases Other long-term assets 93 Current lease liabilities: Finance leases Current portion of long-term obligations and other short-term borrowings 17 Operating leases Other accrued liabilities 14 Non-current lease liabilities: Finance leases Long-term obligations, less current portion 217 Operating leases Other liabilities $ 85 The components of the net lease costs for the fiscal year ended June 30, 2022 reflected in the Company's consolidated statement of operations were as follows: (Dollars in millions) Fiscal Year Ended Financing lease costs: Amortization of right-of-use assets $ 17 Interest on lease liabilities 12 Total 29 Operating lease costs 28 Variable lease costs 8 Total lease costs $ 65 The short-term lease cost amounted to $8 million during the fiscal year ended June 30, 2022. The weighted average remaining lease term and weighted average discount rate related to the Company's right-of-use assets and lease liabilities as of June 30, 2022 are as follows: Weighted average remaining lease term (years): Finance leases 17.7 Operating leases 13.7 Weighted average discount rate: Finance leases 6.1 % Operating leases 4.3 % Supplemental information concerning the cash-flow impact arising from the Company's leases for the fiscal year ended June 30, 2022 recorded in the Company's unaudited consolidated statement of cash flows is detailed in the following table (in millions): Fiscal Year Ended Cash paid for amounts included in lease liabilities: Financing cash flows used for finance leases $ 15 Operating cash flows used for finance leases 11 Operating cash flows used for operating leases 19 Non-cash transactions: Right-of-use assets obtained in exchange for new finance lease liabilities 59 Right-of-use assets obtained in exchange for new operating lease liabilities $ 31 As of June 30, 2022, the Company expects that its future minimum lease payments will become due and payable as follows: (Dollars in millions) Financing Leases Operating Leases Total 2023 $ 29 $ 17 $ 46 2024 28 14 42 2025 25 11 36 2026 22 11 33 2027 22 11 33 Thereafter 238 74 312 Total minimum lease payments 364 138 502 Less: interest 130 39 169 Total lease liabilities $ 234 $ 99 $ 333 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Jun. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES Contingent Losses From time to time, the Company may be involved in legal proceedings arising in the ordinary course of business, including, without limitation, inquiries and claims concerning environmental contamination as well as litigation and allegations in connection with acquisitions, product liability, manufacturing or packaging defects, and claims for reimbursement for the cost of lost or damaged active pharmaceutical ingredients, the cost of any of which could be significant. The Company intends to vigorously defend itself against any such litigation and does not currently believe that the outcome of any such litigation will have a material adverse effect on the Company’s financial statements. In addition, the healthcare industry is highly regulated and government agencies continue to scrutinize certain practices affecting government programs and otherwise. From time to time, the Company receives subpoenas or requests for information relating to the business practices and activities of customers or suppliers from various governmental agencies or private parties, including from state attorneys general, the U.S. Department of Justice, and private parties engaged in patent infringement, antitrust, tort, and other litigation. The Company generally responds to such subpoenas and requests in a timely and thorough manner, which responses sometimes require considerable time and effort and can result in considerable costs being incurred. The Company expects to incur costs in future periods in connection with future requests. |
Segment Information
Segment Information | 12 Months Ended | |
Jun. 30, 2022 | ||
Segment Reporting [Abstract] | ||
Segment Reporting Disclosure [Text Block] | SEGMENT AND GEOGRAPHIC INFORMATION As discussed in Note 1, Basis of Presentation and Summary of Significant Accounting Policies , the Company conducted its business within the following segments in fiscal 2022: 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 (income) expense, impairments, restructuring costs, interest expense, income tax expense, and depreciation and amortization ( “ Segment EBITDA ” ). Segment EBITDA is subject to important limitations as it is not defined under U.S. GAAP and is not a measure of operating income, operating performance, or liquidity presented in accordance with U.S. GAAP. These consolidated financial statements include information concerning Segment EBITDA (a) because Segment EBITDA is an operational measure used by management in the assessment of the operating segments, the allocation of resources to the segments, and the setting of strategic goals and annual goals for the segments, and (b) in order to provide supplemental information that the Company considers relevant for the readers of the consolidated financial statements. The Company’s presentation of Segment EBITDA may not be comparable to similarly titled measures used by other companies. The following table includes Segment EBITDA for each of the Company's current reporting segments during the fiscal years ended June 30, 2022, 2021, and 2020: (Dollars in millions) Fiscal Year Ended June 30, 2022 2021 2020 Segment EBITDA reconciled to net earnings: Biologics $ 798 $ 608 $ 237 Softgel and Oral Technologies 292 237 257 Oral and Specialty Delivery 192 160 201 Clinical Supply Services 110 108 91 Subtotal $ 1,392 $ 1,113 $ 786 Reconciling items to net earnings Unallocated costs (1) (286) 1 (146) Depreciation and amortization (378) (289) (254) Interest expense, net (123) (110) (126) Income tax expense (86) (130) (39) Net earnings $ 519 $ 585 $ 221 (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: (Dollars in millions) Fiscal Year Ended June 30, 2022 2021 2020 Impairment charges and gain/loss on sale of assets (a) $ (31) $ (9) $ (5) Stock-based compensation (54) (51) (48) Restructuring and other special items (b) (55) (31) (42) Gain (loss) on sale of subsidiary (c) 1 182 (1) Other expense, net (e) (28) (3) (8) Non-allocated corporate costs, net (119) (87) (42) Total unallocated costs $ (286) $ 1 $ (146) (a) For the fiscal year ended June 30, 2022, impairment charges are primarily due to fixed asset impairment charges associated with dedicated equipment for a product the Company no longer manufactures in its respiratory and specialty platform and obsolete equipment in its Biologics platform. (b) Restructuring and other special items for the fiscal year ended June 30, 2022 include (i) transaction and integration costs primarily associated with the Princeton, Bettera Wellness, Delphi, Hepatic, Acorda and RheinCell transactions and (ii) unrealized losses on venture capital investments. Restructuring and other special items for the fiscal year ended June 30, 2021 include transaction and integration costs associated with the Anagni, Italy facility acquisition and the MaSTherCell, Skeletal, Delphi, and Acorda transactions, in addition to restructuring costs associated with the closure of the Company's Clinical Supply Services facility in Bolton, U.K. Restructuring and other special items during the fiscal year ended June 30, 2020 include transaction and integration costs associated with the Company’s cell and gene therapy acquisitions and the disposal of a facility in Australia. (c) Gain on sale of subsidiary for the fiscal years ended June 30, 2022 and 2021 is affiliated with the sale of the Blow-Fill-Seal Business. Loss on sale of subsidiary for the fiscal year ended June 30, 2020 is affiliated with the disposal of a facility in Australia. (d) Refer to Note 15, 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 balance sheets. Total Assets (Dollars in millions) June 30, 2022 June 30, 2021 Biologics $ 5,734 $ 4,973 Softgel and Oral Technologies 2,685 1,604 Oral and Specialty Delivery 1,006 1,269 Clinical Supply Services 700 483 Corporate and eliminations 382 783 Total assets $ 10,507 $ 9,112 Capital Expenditures Fiscal Year Ended June 30, (Dollars in millions) 2022 2021 2020 Biologics $ 453 $ 516 $ 330 Softgel and Oral Technologies 109 61 54 Oral and Specialty Delivery 57 64 55 Clinical Supply Services 17 26 10 Corporate 30 19 17 Total capital expenditures $ 666 $ 686 $ 466 The following table presents long-lived assets (1) by geographic area: Long-Lived Assets (1) (Dollars in millions) June 30, 2022 June 30, 2021 United States $ 2,267 $ 1,867 Europe 747 541 Other 113 116 Total $ 3,127 $ 2,524 (1) Long-lived assets include property, plant, and equipment, net of accumulated depreciation. | [1] |
[1]Refer to Note 15, Other expense, net , for details of financing charges and foreign currency translation adjustments recorded within other expense, net. |
Supplemental Balance Sheet Info
Supplemental Balance Sheet Information | 12 Months Ended |
Jun. 30, 2022 | |
Balance Sheet Related Disclosures [Abstract] | |
Supplemental Balance Sheet Information | SUPPLEMENTAL BALANCE SHEET INFORMATION Supplemental balance sheet information at June 30, 2022 and June 30, 2021 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) June 30, June 30, Raw materials and supplies $ 651 $ 469 Work-in-process 109 151 Total inventories, gross 760 620 Inventory cost adjustment (58) (57) Total inventories $ 702 $ 563 Prepaid expenses and other Prepaid expenses and other current assets consist of the following: (Dollars in millions) June 30, June 30, Prepaid expenses $ 61 $ 46 Short-term contract assets 398 181 Spare parts supplies 22 30 Prepaid income tax 26 22 Non-U.S. value-added tax 48 50 Other current assets 70 47 Total prepaid expenses and other $ 625 $ 376 Property, plant, and equipment, net Property, plant, and equipment, net consist of the following: (Dollars in millions) June 30, June 30, Land, buildings, and improvements $ 1,687 $ 1,571 Machinery and equipment 1,891 1,558 Furniture and fixtures 48 31 Construction in progress 848 543 Property and equipment, at cost 4,474 3,703 Accumulated depreciation (1,347) (1,179) Property, plant, and equipment, net $ 3,127 $ 2,524 Other long-term assets Other long-term assets consist of the following: (Dollars in millions) June 30, June 30, Operating lease right-of-use-assets $ 93 $ 84 Note receivable 51 47 Pension assets 37 43 Corporate-owned life insurance policies 35 35 Venture capital investments 33 38 Interest rate swap 36 2 Long-term contract assets 43 — Other 21 19 Total other long-term assets $ 349 $ 268 Other accrued liabilities Other accrued liabilities consist of the following: (Dollars in millions) June 30, June 30, Contract liability $ 185 $ 305 Accrued employee-related expenses 198 184 Accrued expenses 140 170 Operating lease liabilities 14 16 Restructuring accrual 1 4 Accrued interest 32 27 Accrued income tax 50 30 Total other accrued liabilities $ 620 $ 736 |
Subsequent Events (Notes)
Subsequent Events (Notes) | 3 Months Ended |
Dec. 31, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | SUBSEQUENT EVENTSChange in Operating and Reporting Structure |
Basis of Presentation and Sum_2
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
Segment Reporting, Policy | Reporting Segments In fiscal 2022, the Company operated through four segments, each of which reported through a separate management team and ultimately to the Company's Chief Executive Officer, who was designated for fiscal 2022 as the Chief Operating Decision Maker for segment reporting purposes. The Company's fiscal 2022 operating segments were the same as its reporting segments. Immediately following the end of fiscal 2022, the Company announced a new operating structure with two operating and reporting segments: (1) Biologics and (2) Pharma and Consumer Health (see Note 20, Subsequent Events ). Set forth below is a summary description of the Company’s four fiscal 2022 segments. Biologics The Company’s Biologics segment provides development and manufacturing for protein, plasmid DNA (pDNA), mRNA, cell therapy, viral vaccines and viral-based gene therapies; formulation, development, and manufacturing for parenteral dose forms, including vials, prefilled syringes, and cartridges; and analytical development and testing services for large molecules, including bioassay, biophysical characterization, and current good manufacturing practices (“cGMP”) release and stability testing. Softgel and Oral Technologies Through its Softgel and Oral Technologies segment, the Company provides formulation, development, and manufacturing services for soft capsules, or “softgels,” as well as large-scale manufacturing of oral solid dose forms for pharmaceutical and consumer health markets, along with supporting ancillary services. Following the Company’s fiscal 2022 acquisition of Bettera Holdings, LLC (“Bettera Wellness”), it also provides formulation, development, and manufacturing of experiential dose forms for the delivery of dietary supplements and other nutraceuticals. Oral and Specialty Delivery The Company’s Oral and Specialty Delivery segment provides advanced analytical and formulation development and manufacturing across a range of technologies along with integrated downstream clinical development and commercial supply solutions. The technologies cover a broad range of oral (including its proprietary fast-dissolve Zydis tablets and many bioavailability enhancement technologies for both immediate and controlled-release tablets and capsules), respiratory and inhaled dose forms (including metered dose inhalers, dry powder inhalers, and nasal delivery devices). Clinical Supply Services The Company’s Clinical Supply Services segment provides manufacturing, packaging, storage, distribution, and inventory management for small-molecule drugs, protein-based biologics, and cell and gene therapies in clinical trials. It offers customers flexible solutions for clinical supplies production and provide distribution and inventory management support for both simple and complex clinical trials. This includes over-encapsulation where needed; supplying placebos, comparator drug |
Basis of Presentation | Basis of Presentation These financial statements include all of the Company’s subsidiaries, including those operating outside the United States ( “ U.S. ” ) and are prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”). All significant transactions among the Company’s subsidiaries and reporting segments have been eliminated, other than as noted. |
Use of Estimates | Use of EstimatesThe preparation of financial statements in conformity with U.S. GAAP requires the Company's management to make estimates and assumptions that affect amounts reported in the financial statements and accompanying notes. Such estimates include, but are not limited to, revenue recognition including determining the transaction price and associated constraint on variable consideration, allowance for credit losses, inventory and long-lived asset valuation, goodwill and other intangible asset valuation and impairment, equity-based compensation, income taxes, derivative valuation, and pension plan asset and liability valuation. Actual amounts may differ from these estimated amounts. |
Reclassifications | ReclassificationCertain prior-period amounts were 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. |
Translation and Transaction of Foreign Currencies | Foreign Currency Translation The financial statements of the Company’s operations outside the U.S. are generally measured using the local currency as the functional currency. Adjustments to translate the assets and liabilities of the foreign operations into U.S. dollars are accumulated as a component of other comprehensive income utilizing period-end exchange rates. Since July 2018, the Company has accounted for its Argentine operations as highly inflationary, but this status has not had a material effect on the consolidated financial statements. The currency fluctuation related to certain long-term inter-company loans where settlement is not planned or anticipated in the foreseeable future have been recorded within the cumulative translation adjustment, a component of other comprehensive income. In addition, the currency fluctuation associated with the portion of the Company’s euro-denominated debt designated as a net investment hedge is included as a component of other comprehensive income. Foreign currency transaction gains and losses calculated by utilizing weighted average exchange rates for the period are included in the statements of operations in “ other expense, net. ” Such foreign currency transaction gains and losses include inter-company loans that are repayable in the foreseeable future. |
Cash and Cash Equivalents | Cash and Cash Equivalents All liquid investments purchased with original maturities of three months or less are considered cash equivalents. The carrying value of these cash equivalents approximates fair value. |
Receivables and Allowance dor Doubtful Accounts | Allowance for Credit Losses Trade receivables, contract assets, and other amounts owed to the Company 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, aging of customer receivable balances, significant aspects of a geographic location's economic conditions, the current and anticipated future condition of the general economy and the industries in which the Company's primary customers operate. To the extent that the Company identifies that any individual customer's credit quality has deteriorated, the Company establishes allowances based on the individual risk characteristics of that 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. |
Concentrations of Credit Risk and Major Customers | Concentrations of Credit Risk and Major Customers Concentration of credit risk, with respect to accounts receivable, is limited due to the large number of customers and their dispersion across different geographic areas. The customers are primarily concentrated in the pharmaceutical and consumer products industries. The Company does not normally require collateral or any other security to support credit sales. The Company performs ongoing credit evaluations of its customers’ financial conditions and maintains reserves for credit losses. Such losses historically have been within the Company’s expectations. For the fiscal year ended June 30, 2022, the Company had one customer that accounted for greater than 10% of its net revenue, which was primarily recorded in the Biologics segment. No single customer exceeded 10% of revenue during the fiscal years ended June 30, 2021, and 2020. As of June 30, 2021, the Company had one customer that accounted for approximately 15% or $155 million of its net trade receivable balances. No customer exceeded 10% of trade receivables as of June 30, 2022 or June 30, 2020. However, when considering aggregate trade receivable and contract asset values for significant customers as of June 30, 2022, the Company had one customer that accounted for approximately 14% of its aggregate trade receivable and contract asset values. |
Inventories | Inventories Inventory is stated at the lower of cost or net realizable value, using the first-in, first-out ( “ FIFO ” |
Goodwill | Goodwill The Company accounts for purchased goodwill and intangible assets with indefinite lives in accordance with Accounting Standards Codification (“ASC”) 350, Intangibles - Goodwill and Other . Under ASC 350, goodwill and intangible assets with indefinite lives are not amortized, but instead are tested for impairment at least annually. The Company performs an impairment evaluation of goodwill annually during the fourth quarter of its fiscal year or when circumstances otherwise indicate an evaluation should be performed. The evaluation may begin with a qualitative assessment for each reporting unit to determine whether it is more-likely-than-not that the fair value of the reporting unit is less than its carrying value. Factors considered in a qualitative assessment include, among other things, macroeconomic conditions, industry and market considerations, financial performance of the respective reporting unit and other relevant entity and reporting-unit specific considerations. If the qualitative assessment does not generate a positive response, or if no qualitative assessment is performed, a quantitative assessment, based upon discounted cash flows, is performed and requires management to estimate future cash flows, growth rates, and macroeconomic, industry, and market conditions. In fiscal 2022 and 2020, the Company proceeded immediately to the quantitative assessment, but in fiscal 2021, the Company began its impairment evaluation with the qualitative assessment. The evaluations performed in fiscal 2020, 2021, and 2022 resulted in no impairment charge. Based on its quantitative assessment conducted as of April 1, 2022, the Company determined for each reporting unit with goodwill that it was more likely than not that its respective fair value exceeded its carrying value, indicating there was no impairment. For more information regarding goodwill balances at June 30, 2022 , see Note 4, Goodwill . |
Property and Equipment | Property and equipment are stated at cost. Depreciation expense is computed using the straight-line method over the estimated useful lives of the assets, including leasehold improvements and finance lease right-of-use assets that are amortized over the shorter of their useful lives or the terms of the respective leases. The Company generally uses the following range of useful lives for its property and equipment categories: buildings and improvements—5 to 50 years; machinery and equipment—3 to 10 years; and furniture and fixtures—3 to 7 years. Depreciation expense was $255 million for the fiscal year ended June 30, 2022, $196 million for the fiscal year ended June 30, 2021, and $165 million for the fiscal year ended June 30, 2020. Depreciation expense includes amortization of assets related to financing leases. The Company charges repairs and maintenance costs to expense as incurred. The amount of capitalized interest for fiscal 2022, 2021 and 2020 was $15 million, $17 million, and $11 million, respectively. |
Intangible Assets, Finite-Lived | Intangible assets with finite lives, including customer relationships, core technology, patents, and trademarks, are amortized over their useful lives. The Company also capitalizes certain computer software and development costs in other intangibles, net, when incurred in connection with developing or obtaining computer software for internal use. Capitalized software costs are amortized over the estimated useful lives of the software, which generally range from 3 to 5 years. The Company evaluates the recoverability of its other long-lived assets, including amortizing intangible assets, if circumstances indicate impairment may have occurred pursuant to ASC 360, Property, Plant and Equipment . This analysis is performed by |
Post-Retirement and Pension Plans | Post-Retirement and Pension Plans The Company sponsors various retirement and pension plans, including defined benefit and defined contribution retirement plans. The measurement of the related benefit obligations and the net periodic benefit costs recorded each year are based upon actuarial computations, which require management’s judgment as to certain assumptions. These assumptions include the discount rates used in computing the present value of the benefit obligations and the net periodic benefit costs, the expected future rate of salary increases (for pay-related plans) and the expected long-term rate of return on plan assets (for funded plans). The Company uses the corridor approach to amortize actuarial gains and losses. The Company has elected to utilize an approach to estimate the service and interest components of net periodic benefit cost for benefit plans that discounts the individual expected cash flows using the applicable spot rates derived from the yield curve over the projected cash flow period. The expected long-term rate of return on plan assets is based on the target asset allocation and the average expected rate of growth for the asset classes invested. The average expected rate of growth is derived from a combination of historic returns, current market indicators, and the expected risk premium for each asset class. The Company uses a measurement date of June 30 for all its retirement and postretirement benefit plans. |
Derivative Instruments and Hedging Activities | Derivative Instruments and Hedging Activities The Company is exposed to certain risks arising from both its business operations and economic conditions. The Company principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Company manages economic risks, including interest-rate, liquidity, and credit risk primarily by managing the amount, sources, and duration of its debt funding and the use of derivative financial instruments. Specifically, the Company enters into derivative financial instruments from time to time to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the values of which are determined by interest rates. The Company’s derivative financial instruments are used to manage differences in the amount, timing, and duration of the Company’s known or expected cash receipts and its known or expected cash payments principally related to the Company’s borrowings. The Company does not net any of its derivative positions under master netting arrangements. Primarily, the Company is exposed to fluctuations in the euro-U.S. dollar exchange rate on its investments in foreign operations in Europe. While the Company does not actively hedge against changes in foreign currency, it has mitigated the exposure of investments in its European operations through a net-investment hedge by denominating a portion of its debt in euros. In addition, a portion of Operating Company's interest payment obligation on its U.S dollar-denominated term loans is exposed to interest rate variability. The Company has mitigated its exposure to this risk by entering into interest-rate swap agreements, which qualify for and are designated as cash-flow hedges. Also, as discussed in Note 9, Derivative Instruments and Hedging Activities , the Company determined that an aspect of the dividend-rate adjustment feature of the Company’s previously outstanding Series A Preferred Stock (as defined below, see Note 13, Equity, Redeemable Preferred Stock, and Accumulated Other Comprehensive Loss |
Fair Value Measurement, Policy | Fair Value The Company is required to measure certain assets and liabilities at fair value, either upon initial measurement or for subsequent accounting or reporting. The Company uses fair value extensively, including in the initial measurement of net assets acquired in a business combination and when accounting for and reporting on certain financial instruments. The Company estimates fair value using an exit price approach, which requires, among other things, that it determine the price that would be received to sell an asset or paid to transfer a liability in an orderly market. The determination of an exit price is considered from the perspective of market participants, considering the highest and best use of assets and, for liabilities, assuming the risk of non-performance will be the same before and after the transfer. A single estimate of fair value results from a complex series of judgments about future events and uncertainties and relies heavily on estimates and assumptions. When estimating fair value, depending on the nature and complexity of the assets or liability, the Company may use one or all of the following approaches: • Market approach, which is based on market prices and other information from market transactions involving identical or comparable assets or liabilities. • Cost approach, which is based on the cost to acquire or construct comparable assets less an allowance for functional and/or economic obsolescence. • Income approach, which is based on the present value of the future stream of net cash flows. Certain investments that are measured at fair value using the net asset value ( “ NAV ” ) per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. |
Marketable Securities [Table Text Block] | 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. For available-for-sale debt securities in an unrealized loss position, the Company assesses whether it intends to sell or if it is more likely than not that the Company will be required to sell the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to fair value. If the criteria are not met, the Company evaluates whether the decline in fair value has resulted from a credit loss or other factors. In making this assessment, management considers, among other factors, the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency, and adverse conditions specifically related to the security. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of the cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses is recorded for the credit loss, limited by the amount that the fair value is less than the amortized costs basis. The Company classifies its marketable securities as available-for-sale, because it 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. 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. As of June 30, 2022, the amortized cost basis of marketable securities approximates fair value and all outstanding marketable securities mature within one year. |
Self Insurance | Self-Insurance The Company is partially self-insured for certain employee health benefits and partially self-insured for property losses and casualty claims. The Company accrues for losses based upon experience and actuarial assumptions, including provisions for losses incurred but not reported. |
Accumulated Other Comprehensive Income/(Loss) | Accumulated Other Comprehensive Loss Accumulated other comprehensive loss, which is reported in the accompanying consolidated statements of changes in shareholders’ equity, consists of foreign currency translation, net change in marketable securities, and defined benefit pension plan changes. |
Research and Development Costs | Research and Development CostsThe Company expenses research and development costs as incurred. Research and development costs amounted to $23 million, $21 million, and $21 million for the fiscal years ended June 30, 2022, 2021, and 2020, respectively. |
Earnings Per Share | Earnings Per Share The Company reports net earnings per share in accordance with ASC 260, Earnings per Share . The Company computes basic earnings per share for the Common Stock using the two-class method by d ividing net income attributable to common stockholders by the weighted average number of common shares outstanding during the period. The Series A Preferred Stock, due to its convertible feature, was participating in nature; accordingly, the outstanding shares of Series A Preferred Stock were included in the two-class method. Diluted earnings per common share measures the performance of the Company over the reporting period while giving effect to all potential shares of Common Stock that were dilutive and outstanding during the period. The denominator includes the weighted average over the measurement period of the sum of the number of shares of |
Income Taxes | Income Taxes In accordance with ASC 740, Income Taxes, the Company accounts for income taxes using the asset and liability method. The asset and liability method requires recognition of deferred tax assets and liabilities for expected future tax consequences of temporary differences that currently exist between tax bases and financial reporting bases of the Company’s assets and liabilities. The Company measures deferred tax assets and liabilities using enacted tax rates in the respective jurisdictions in which it operates. In assessing the ability to realize deferred tax assets, the Company considers whether it is more likely than not that the Company will be able to realize some or all of the deferred tax assets. The calculation of the Company’s tax liabilities involves dealing with uncertainties in the application of complex tax regulations in each of its tax jurisdictions. The number of years with open tax audits varies by tax jurisdiction. A number of years may lapse before a particular matter is audited and finally resolved. The Company applies ASC 740 to determine the accounting for uncertain tax positions. This standard prescribes a minimum recognition threshold a tax position is required to meet before the Company may recognize the position in its financial statements. The standard also provides guidance on derecognition, measurement, classification, interest and penalties, accounting in interim periods, and disclosure. The Company previously elected not to reclassify the income tax effects stranded in accumulated other comprehensive income to retained earnings. |
Equity-Based Compensation | Stock-Based Compensation The Company accounts for its stock-based compensation in accordance with ASC 718, Compensation—Stock Compensation. Under ASC 718, companies recognize compensation expense using a fair-value-based method for costs related to share-based payments, including stock options and restricted stock units. The expense is measured based on the grant date fair value of the awards, and the expense is recorded over the applicable requisite service period. Forfeitures are recognized as and when they occur. In the absence of an observable market price for a share-based award, the fair value is based upon a valuation methodology that takes into consideration various factors, including the exercise price of the award, the expected term of the award, the current price of the underlying shares, the expected volatility of the underlying share price, the expected dividends on the underlying shares and the risk-free interest rate. The terms of the Company’s stock-based compensation plans permit an employee holding vested stock options or restricted stock units to elect to have the Company use a portion of the shares otherwise issuable upon the employee’s exercise of the option or grant, a so-called “ net settlement transaction, ” |
Recent Financial Accounting Standards | Recent Financial Accounting Standards Recently Adopted Accounting Standards In December 2019, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“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 change in tax laws or rates. The Company adopted the guidance on July 1, 2021. The adoption of this standard did not have a material impact on the Company’s consolidated financial statements. In August 2018, the FASB issued ASU 2018-14, Compensation—Retirement Benefits—Defined Benefit Plans—General (Subtopic 715-20): Disclosure Framework—Changes to the Disclosure Requirements for Defined Benefit Plan , which removes certain disclosures and added additional disclosures around weighted-average interest crediting rates for cash balance plans and explanation for significant gains and losses related to change in the benefit obligation for the period. The Company adopted the guidance on July 1, 2021. The adoption of this standard did not have a material impact on the Company’s consolidated financial statements. New Accounting Standards Not Adopted as of June 30, 2022 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, |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Disaggregation of Revenue [Line Items] | |
Disaggregation of Revenue | The following tables reflect net revenue for the fiscal years ended June 30, 2022, 2021, and 2020 by type of activity and reporting segment (in millions): Fiscal Year Ended June 30, 2022 Biologics Softgel and Oral Technologies Oral and Specialty Delivery Clinical Supply Services Total Manufacturing & commercial product supply $ 607 $ 1,081 $ 403 $ — $ 2,091 Development services 1,942 165 247 — 2,354 Clinical supply services — — — 400 400 Total $ 2,549 $ 1,246 $ 650 $ 400 $ 4,845 Inter-segment revenue elimination (17) Combined net revenue $ 4,828 Fiscal Year Ended June 30, 2021 Biologics Softgel and Oral Technologies Oral and Specialty Delivery Clinical Supply Services Total Manufacturing & commercial product supply $ 533 $ 877 $ 455 $ — $ 1,865 Development services 1,395 135 231 — 1,761 Clinical supply services — — — 391 391 Total $ 1,928 $ 1,012 $ 686 $ 391 $ 4,017 Inter-segment revenue elimination (19) Combined net revenue $ 3,998 |
Revenue Recognition and Deferred Revenue [Abstract] | |
Contractual Liabilities | The contract liabilities balances (current and non-current) as of June 30, 2022 and June 30, 2021 were as follows: (Dollars in millions) Balance at June 30, 2021 $ 321 Balance at June 30, 2022 $ 194 Revenue recognized in the period from amounts included in contracts liability at the beginning of the period: $ (272) |
geographical [Member] | |
Disaggregation of Revenue [Line Items] | |
Disaggregation of Revenue | The following table reflects net revenue by the location where the goods were made or the service performed: (Dollars in millions) Fiscal Year Ended Fiscal Year Ended Fiscal Year Ended United States $ 3,110 $ 2,462 $ 1,822 Europe 1,506 1,343 976 Other 327 288 376 Elimination of revenue attributable to multiple locations (115) (95) (80) Total $ 4,828 $ 3,998 $ 3,094 |
Business Combinations (Tables)
Business Combinations (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
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 Note receivable (1) 47 Contingent consideration (2) — Other (3) (16) Total $ 331 (1) The note receivable, which provides for interest at a rate of 5.0% paid in kind, had an estimated fair value of $47 million and $51 million at June 30, 2021 and June 30, 2022, respectively. The fair value at divestiture date consisted of a $50 million aggregate principal amount less a $3 million discount determined using a discounted cash flow model. (2) The Company determined that the estimated fair value of the contingent consideration from the sale of the Blow-Fill-Seal Business at June 30, 2022 is zero, and therefore no contingent consideration was recorded at divestiture. 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 . (3) Other includes $8 million of transaction expenses, a working capital adjustment of $6 million , and a $2 million assumption of liabilities resulting in net cash proceed of |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Carrying Amount of Goodwill | The following table summarizes the changes from June 30, 2020 to June 30, 2021 and then to June 30, 2022 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 $ 1,463 $ 505 $ 355 $ 148 $ 2,471 Additions (1) 54 — 2 — 56 Divestitures (2) — — (54) — (54) Foreign currency translation adjustments 14 11 13 8 46 Balance at June 30, 2021 1,531 516 316 156 2,519 Additions (3) 41 531 — — 572 Foreign currency translation adjustments (37) (24) (15) (9) (85) Balance at June 30, 2022 $ 1,535 $ 1,023 $ 301 $ 147 $ 3,006 (1) The additions to goodwill arise from the Skeletal (Biologics), Delphi (Biologics) and Acorda (Oral and Specialty Delivery) transactions. For further details, see Note 3, Business Combinations and Divestitures . (2) Represents goodwill associated with the divestiture of the Blow-Fill-Seal Business. (3) The additions to goodwill arise from the Bettera Wellness (Softgel and Oral Technologies), Princeton (Biologics), RheinCell (Biologics), and Delphi (Biologics) acquisitions. For further details, see Note 3, Business Combinations and Divestitures . |
Definite Lived Long-Lived Ass_2
Definite Lived Long-Lived Assets (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Finite lived intangible assets disclosure [Abstract] | |
Other Intangible Assets Subject to Amortization | The details of other intangible assets subject to amortization as of June 30, 2022 and June 30, 2021 are as follows (in millions): June 30, 2022 Weighted Average Life Gross Carrying Value Accumulated Amortization Net Carrying Value Amortized intangibles: Core technology 11 years $ 480 $ (121) $ 359 Customer relationships 13 years 1,020 (366) 654 Product relationships 8 years 239 (204) 35 Other 4 years 24 (12) 12 Total other intangibles $ 1,763 $ (703) $ 1,060 June 30, 2021 Weighted Average Life Gross Carrying Value Accumulated Amortization Net Carrying Value Amortized intangibles: Core technology 19 years $ 140 $ (94) $ 46 Customer relationships 14 years 1,024 (306) 718 Product relationships 11 years 281 (237) 44 Other 5 years 17 (8) 9 Total other intangibles $ 1,462 $ (645) $ 817 |
Future Amortization Expense | Future amortization expense for the next five fiscal years is estimated to be: (Dollars in millions) 2023 2024 2025 2026 2027 Thereafter Total Amortization $ 132 $ 131 $ 129 $ 121 $ 105 $ 442 $ 1,060 |
Restructuring and Other Costs (
Restructuring and Other Costs (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring and Other Costs | The following table summarizes the costs recorded within restructuring costs: Fiscal Year Ended June 30, (Dollars in millions) 2022 2021 2020 Restructuring costs: Employee-related reorganization $ 9 $ 8 $ 6 Facility exit and other costs 1 2 — Total restructuring costs $ 10 $ 10 $ 6 |
Long-Term Obligations and Oth_2
Long-Term Obligations and Other Short-Term Borrowings (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments [Table Text Block] | Long-term obligations and short-term borrowings consist of the following at June 30, 2022 and June 30, 2021: (Dollars in millions) Maturity as of June 30, 2022 June 30, 2022 June 30, 2021 Senior secured credit facilities Term loan facility B-3 February 2028 1,433 997 5.000% senior notes due 2027 July 2027 500 500 2.375% euro senior notes due 2028 (1) March 2028 874 984 3.125% senior notes due 2029 February 2029 550 550 3.500% senior notes due 2030 April 2030 650 — Deferred purchase consideration — 50 Financing lease obligations 2022 to 2120 234 193 Other obligations 2022 to 2028 2 3 Unamortized discount and debt issuance costs (41) (36) Total debt 4,202 3,241 Less: current portion of long-term obligations and other short-term 31 75 Long-term obligations, less current portion $ 4,171 $ 3,166 (1) The decrease in euro-denominated debt at June 30, 2022 compared to the prior year is primarily due to fluctuations in foreign currency exchange rates. |
Maturities of long-term obligations | Maturities of long-term obligations, including finance leases of $234 million, and other short-term borrowings for future fiscal years are: (Dollars in millions) 2023 2024 2025 2026 2027 Thereafter Total Maturities of long-term and other obligations $ 31 $ 31 $ 29 $ 26 $ 27 $ 4,099 $ 4,243 |
Fair Value Disclosures [Abstract] | |
Schedule Of Carrying And Fair Value Of Financial Instruments Table | The carrying amounts and the estimated fair values of financial instruments as of June 30, 2022 and June 30, 2021 are as follows: June 30, 2022 June 30, 2021 (Dollars in millions) Fair Value Measurement Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value 5.000% Senior Notes due 2027 Level 2 $ 500 $ 483 $ 500 $ 539 2.375% euro Senior Notes due 2028 Level 2 874 744 984 993 3.125% Senior Notes due 2029 Level 2 550 476 550 524 3.500% senior notes due 2030 Level 2 650 561 — — Senior secured credit facilities & other Level 2 1,669 1,575 1,243 1,209 Subtotal $ 4,243 $ 3,839 $ 3,277 $ 3,265 Debt issuance costs (41) — (36) — Total debt $ 4,202 $ 3,839 $ 3,241 $ 3,265 |
Earnings Per Share Calculation
Earnings Per Share Calculation (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | The reconciliations between basic and diluted earnings per share attributable to Catalent common shareholders for the fiscal years ended June 30, 2022, 2021, and 2020 are as follows: Fiscal year ended June 30, (In millions, except per share data) 2022 2021 2020 Net earnings $ 519 $ 585 $ 221 Less: Net earnings attributable to preferred shareholders (16) (56) (48) Net earnings attributable to common shareholders $ 503 $ 529 $ 173 Weighted average shares outstanding - basic 176 168 150 Weighted average dilutive securities issuable - stock plans 2 2 2 Total weighted average shares outstanding - diluted 178 170 152 Earnings per share: Basic $ 2.85 $ 3.15 $ 1.16 Diluted $ 2.84 $ 3.11 $ 1.14 |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The diluted weighted average number of shares outstanding for the fiscal years ended June 30, 2022, 2021 and 2020 did not include the following weighted average number of shares of Common Stock associated with the formerly outstanding Series A Preferred Stock or the weighted average number of shares of Common Stock associated with outstanding equity grants due to their antidilutive effect: Fiscal year ended June 30, (share counts in millions) 2022 2021 2020 Series A Preferred Stock 3 10 13 |
Derivative Instruments and He_2
Derivative Instruments and Hedging Activities (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Net Investment Hedge in Accumulated Other Comprehensive Income (Loss) and Statement of Financial Performance [Table Text Block] | The following table includes net investment hedge activity during the fiscal years ended June 30, 2022 and 2021, respectively: (Dollars in millions) June 30, 2022 June 30, 2021 Unrealized foreign exchange gain (loss) within Other Comprehensive Income $ 121 $ (56) Unrealized foreign exchange loss within the Consolidated Statements of Operations $ (11) $ (3) |
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: June 30, 2022 June 30, 2021 (in millions) Balance Sheet Classification Estimated Fair Value Balance Sheet Classification Estimated Fair Value Interest-rate swap Other long-term assets $ 36 Other long-term assets $ 2 |
Fair Value Measures and Discl_2
Fair Value Measures and Disclosures (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
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 June 30, 2022 and 2021, respectively: (Dollars in millions) Basis of Fair Value Measurement June 30, 2022 Total Level 1 Level 2 Level 3 Assets: Marketable securities $ 89 $ 89 $ — $ — Interest-rate swap 36 — 36 — Trading securities $ 2 $ 2 $ — $ — June 30, 2021 Assets: Marketable securities $ 71 $ 71 $ — $ — Interest-rate swap 2 — 2 — Trading securities $ 1 $ 1 $ — $ — Liabilities: Series A Preferred Stock derivative liability $ 3 $ — $ — $ 3 |
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, 2021 to June 30, 2022: ( Dollars in millions) Fair Value Measurement of Balance at June 30, 2021 $ 3 Change in estimated fair value of Series A Preferred Stock derivative liability (2) Settlement of derivative liability upon Final Conversion (1) Balance at June 30, 2022 $ — |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Earnings/(loss) from continuing operations before income taxes and discontinued operations | Earnings before income taxes are as follows for fiscal 2022, 2021, and 2020: Fiscal Year Ended (Dollars in millions) 2022 2021 2020 U.S. operations $ 250 $ 457 $ 121 Non-U.S. operations 355 258 139 Total $ 605 $ 715 $ 260 |
Provision/ (benefit) for income taxes | The provision for income taxes consists of the following for fiscal 2022, 2021, and 2020: Fiscal Year Ended (Dollars in millions) 2022 2021 2020 Current: Federal $ (8) $ 8 $ 1 State and local 15 20 1 Non-U.S. 66 38 33 Total current expense $ 73 $ 66 $ 35 Deferred: Federal $ 11 $ 62 $ 11 State and local (5) 7 6 Non-U.S. 7 (5) (13) Total deferred expense $ 13 $ 64 $ 4 Total provision $ 86 $ 130 $ 39 |
Reconciliation of the provision/(benefit) based on the federal statutory income tax rate | A reconciliation of the provision starting from the tax computed at the federal statutory income tax rate to the tax computed at the Company’s effective income tax rate is as follows for the fiscal years ended 2022, 2021, and 2020: Fiscal Year Ended (Dollars in millions) 2022 2021 2020 Provision at U.S. federal statutory tax rate $ 127 $ 150 $ 55 State and local income taxes 11 26 6 Foreign tax rate differential (28) (14) (6) Global intangible low tax income 6 3 3 Other permanent items 2 (5) 2 Unrecognized tax positions 1 3 (1) Tax valuation allowance 94 (7) (21) Foreign tax credit (43) (24) (3) Withholding tax and other foreign taxes 1 1 1 Change in tax rate 1 2 4 R&D tax credit (2) (5) (2) Swiss tax reform (83) — — Other (1) — 1 Total provision $ 86 $ 130 $ 39 |
Components of the deferred income tax assets and liabilities | Deferred income taxes arise from temporary differences between the financial reporting and tax reporting bases of assets and liabilities, and operating loss and tax credit carryforwards for tax purposes. The components of the Company's deferred income tax assets and liabilities are as follows at June 30, 2022 and 2021: Fiscal Year Ended (Dollars in millions) 2022 2021 Deferred income tax assets: Accrued liabilities $ 33 $ 43 Equity compensation 14 15 Loss and tax credit carryforwards 225 187 Foreign currency 19 12 Pension 17 24 Interest-related 14 14 Deferred revenue 1 3 Lease liabilities 39 35 Euro-denominated debt — 23 Other 2 — Total deferred income tax assets $ 364 $ 356 Valuation allowance (149) (65) Net deferred income tax assets $ 215 $ 291 Fiscal Year Ended (Dollars in millions) 2022 2021 Deferred income tax liabilities: Euro-denominated debt $ (6) $ — Property-related (227) (171) Goodwill and other intangibles (113) (194) Right-of-use assets (21) (18) Other (1) (6) Total deferred income tax liabilities $ (368) $ (389) Net deferred tax liability $ (153) $ (98) |
Deferred tax assets and liabilities | Deferred tax assets and liabilities in the preceding table are in the following captions in the consolidated balance sheets at June 30, 2022 and 2021: Fiscal Year Ended (Dollars in millions) 2022 2021 Non-current deferred tax asset $ 49 $ 66 Non-current deferred tax liability (202) (164) Net deferred tax liability $ (153) $ (98) |
Reconciliation of Unrecognized tax benefit, excluding accrued interest | A reconciliation of unrecognized tax benefits, excluding accrued interest, as of June 30, 2022, 2021, and 2020 is as follows: (Dollars in millions) Balance at June 30, 2019 $ 4 Additions for tax positions of prior years 1 Lapse of the applicable statute of limitations (1) Balance at June 30, 2020 $ 4 Additions for tax positions of prior years 3 Lapse of the applicable statute of limitations (2) Balance at June 30, 2021 $ 5 Additions for tax positions related to the current year 1 Additions for tax positions of prior years 1 Settlements (1) Lapse of the applicable statute of limitations (1) Balance at June 30, 2022 $ 5 |
Employee Retirement Benefit P_2
Employee Retirement Benefit Plans (Tables) | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Retirement Benefits [Abstract] | ||
Benefit obligation and fair value of plan assets for the defined benefit retirement and postretirement plan | The following table provides a reconciliation of the change in projected benefit obligation and fair value of plan assets for the defined benefit retirement and other retirement plans, excluding the multi-employer pension plan liability: Retirement Benefits Other Post-Retirement Benefits June 30, June 30, (Dollars in millions) 2022 2021 2022 2021 Accumulated Benefit Obligation $ 262 $ 364 $ 2 $ 2 Change in Benefit Obligation Benefit obligation at beginning of year 372 358 2 3 Company service cost 4 4 — — Interest cost 5 4 — — Settlements (1) — — — Benefits paid (9) (13) — (1) Actuarial (gain) loss (1) (71) (9) — — Exchange rate (loss) gain (32) 28 — — Benefit obligation at end of year $ 268 $ 372 $ 2 $ 2 Change in Plan Assets Fair value of plan assets at beginning of year 318 295 — — Actual return on plan assets (50) (1) — — Company contributions 10 11 — — Settlements (1) — — — Benefits paid (9) (13) — — Exchange rate gain (loss) (28) 26 — — Fair value of plan assets at end of year $ 240 $ 318 $ — $ — Funded Status Funded status at end of year (28) (54) (2) (2) Net pension liability $ (28) $ (54) $ (2) $ (2) | |
Reconciliation of the net amount recognized in the Consolidated Balance Sheets | The following table provides a reconciliation of the net amount recognized in the consolidated balance sheets: Retirement Benefits Other Post-Retirement Benefits June 30, June 30, (Dollars in millions) 2022 2021 2022 2021 Amounts Recognized in Statement of Financial Position Noncurrent assets $ 37 $ 43 $ — $ — Current liabilities (1) (1) — — Noncurrent liabilities (64) (96) (2) (2) Total liability (28) (54) (2) (2) Amounts Recognized in Accumulated Other Comprehensive Loss Prior service cost (1) (1) — — Net loss (gain) 49 62 (1) (1) Total accumulated other comprehensive loss (income) at the end of the fiscal year 48 61 (1) (1) Additional Information for Plan with ABO or PBO in Excess of Plan Assets Projected benefit obligation 132 130 2 2 Accumulated benefit obligation 128 124 2 2 Fair value of plan assets 67 32 — — Components of Net Periodic Benefit Cost Service cost 4 4 — — Interest cost 5 4 — — Expected return on plan assets (10) (11) — — Amortization of unrecognized: Net loss 2 3 — — Net periodic benefit cost $ 1 $ — $ — $ — Retirement Benefits Other Post-Retirement Benefits June 30, June 30, (Dollars in millions) 2022 2021 2022 2021 Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income Net gain arising during the year $ (14) $ — $ — $ — Exchange rate loss recognized during the year 1 — — — Total recognized in other comprehensive income $ (13) $ — $ — $ — Total Recognized in Net Periodic Benefit Cost and Other Comprehensive Income Total recognized in net periodic benefit cost and other comprehensive income $ (12) $ — $ — $ — Estimated Amounts to be Amortized from Accumulated Other Comprehensive Income into Net Periodic Benefit Cost Amortization of: Net loss $ 1 $ 3 $ — $ — Financial Assumptions Used to Determine Benefit Obligations at the Balance Sheet Date Discount rate (%) 3.6 % 1.6 % 4.0 % 2.0 % Rate of compensation increases (%) 2.7 % 2.0 % n/a n/a Financial Assumptions Used to Determine Net Periodic Benefit Cost for Financial Year Discount rate (%) 1.6 % 1.4 % 2.0 % 1.8 % Rate of compensation increases (%) 2.0 % 2.0 % n/a n/a Expected long-term rate of return (%) 3.4 % 3.6 % n/a n/a Expected Future Contributions Fiscal year 2023 $ 7 $ 8 $ — $ — Retirement Benefits Other Post-Retirement Benefits June 30, June 30, (Dollars in millions) 2022 2021 2022 2021 Expected Future Benefit Payments Financial year 2023 $ 14 $ 13 $ — $ — 2024 13 14 — — 2025 14 15 — — 2026 16 15 — — 2027 14 15 — — 2028-2032 $ 80 $ 84 $ 1 $ 1 Actual Asset Allocation (%) Equities 4.1 % 4.4 % — % — % Government bonds 35.6 % 30.6 % — % — % Corporate bonds 18.3 % 21.0 % — % — % Property 4.9 % 3.5 % — % — % Insurance contracts 12.0 % 9.6 % — % — % Other 25.1 % 30.9 % — % — % Total 100.0 % 100.0 % — % — % Actual Asset Allocation (Amount) Equities $ 10 $ 14 $ — $ — Government bonds 85 97 — — Corporate bonds 44 67 — — Property 12 11 — — Insurance contracts 29 31 — — Other 60 98 — — Total $ 240 $ 318 $ — $ — Target Asset Allocation (%) Equities 4.1 % 4.5 % — % — % Government bonds 35.6 % 30.5 % — % — % Corporate bonds 18.3 % 21.1 % — % — % Property 4.9 % 3.5 % — % — % Insurance contracts 12.0 % 9.6 % — % — % Other 25.1 % 30.8 % — % — % Total 100.0 % 100.0 % — % — % | |
Summary of plan assets that are measured in fair value | The following tables provide a summary of plan assets that are measured at fair value as of June 30, 2022 and 2021, aggregated by the level in the fair value hierarchy within which those measurements fall: As of June 30, 2022 (dollars in millions) Level 1 Level 2 Level 3 Investments Measured at Net Asset Value Total Assets Equity securities $ — $ 10 $ — $ — $ 10 Debt securities — 129 — — 129 Real estate — 10 2 — 12 Other (1) — 64 25 — 89 Total $ — $ 213 $ 27 $ — $ 240 (1) Other as of June 30, 2022, included $35 million of investments in hedge funds related to the Company's U.K. pension plan, which were classified as Level 2. | As of June 30, 2021 (dollars in millions) Level 1 Level 2 Level 3 Investments Measured at Net Asset Value Total Assets Equity securities $ — $ 14 $ — $ — $ 14 Debt securities — 164 — — 164 Real estate — 11 — — 11 Other (1) — 106 23 — 129 Total $ — $ 295 $ 23 $ — $ 318 |
Reconciliation of beginning and ending balances of level 3 assets | The following table provides a reconciliation of the beginning and ending balances of Level 3 assets as well as the changes during the period attributable to assets held and those purchases, sales, settlements, contributions, and benefits that were paid: Fair Value Measurement Using Significant Unobservable Inputs Total (Level 3) Fair Value Measurement Using Significant Unobservable Inputs Insurance Contracts Fair Value Measurement Using Significant Unobservable Inputs Other Total (Level 3) (Dollars in millions) Beginning Balance at June 30, 2021 $ 23 $ 3 $ 20 Actual return on plan assets: Relating to assets still held at the reporting date (2) — (2) Purchases, sales, settlements, contributions and benefits paid (5) (3) (2) Transfers in or out of Level 3, net 11 9 2 Ending Balance at June 30, 2022 $ 27 $ 9 $ 18 | |
Assumed healthcare cost trend rates | Other Post-Retirement Benefits Assumed Healthcare Cost Trend Rates at the Balance Sheet Date 2022 2021 Healthcare cost trend rate – initial (%) Pre-65 n/a n/a Post-65 4.6 % 7.3 % Healthcare cost trend rate – ultimate (%) Pre-65 n/a n/a Post-65 4.1 % 4.4 % Year in which ultimate rates are reached Pre-65 n/a n/a Post-65 2040 2035 |
Equity and Accumulated Other Co
Equity and Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Equity [Abstract] | |
Accumulated other comprehensive earnings/(loss) | Accumulated other comprehensive loss by component and changes for the fiscal years ended June 30, 2022, 2021, and 2020 consist of: (Dollars in millions) Foreign Currency Translation Adjustment Pension Liability Adjustments Derivatives and Hedges Marketable Securities Other Total Balance at June 30, 2019 $ (304) $ (49) $ — $ — $ (1) $ (354) Other comprehensive loss before reclassifications (31) — (3) — — (34) Amounts reclassified from other comprehensive loss — 2 — — — 2 Balance at June 30, 2020 (335) (47) (3) — (1) (386) Other comprehensive loss before reclassifications 67 — 3 (1) — 69 Balance at June 30, 2021 (268) (47) — (1) (1) (317) Other comprehensive income (loss) before reclassifications (110) 8 27 (3) — (78) Amounts reclassified from other comprehensive loss — 1 — — — 1 Balance at June 30, 2022 $ (378) $ (38) $ 27 $ (4) $ (1) $ (394) |
Schedule of Comprehensive Income (Loss) | The components of the changes in the cumulative translation adjustment, derivatives and hedges, minimum pension liability, and marketable securities for the fiscal years ended June 30, 2022, 2021, and 2020 consists of: Fiscal Year Ended June 30, (Dollars in millions) 2022 2021 2020 Foreign currency translation adjustments: Net investment hedge $ 121 $ (56) $ 3 Long-term inter-company loans (37) 39 (9) Translation adjustments (169) 72 (25) Total foreign currency translation adjustments, pretax (85) 55 (31) Tax expense (benefit) 25 (12) — Total foreign currency translation adjustments, net of tax $ (110) $ 67 $ (31) Net change in derivatives and hedges: Net gain (loss) recognized during the year, pretax $ 36 $ 4 $ (4) Tax expense (benefit) 9 1 (1) Net change in derivatives and hedges, net of tax $ 27 $ 3 $ (3) Net change in minimum pension liability: Net gain recognized during the year, pretax $ 13 $ — $ 4 Tax expense 4 — 2 Net change in minimum pension liability, net of tax $ 9 $ — $ 2 Net change in marketable securities: Net loss recognized during the year, pretax $ (3) $ (1) $ — Tax expense (benefit) — — — Net change in marketable securities, net of tax $ (3) $ (1) $ — Accumulated Other Comprehensive Loss Accumulated other comprehensive loss by component and changes for the fiscal years ended June 30, 2022, 2021, and 2020 consist of: (Dollars in millions) Foreign Currency Translation Adjustment Pension Liability Adjustments Derivatives and Hedges Marketable Securities Other Total Balance at June 30, 2019 $ (304) $ (49) $ — $ — $ (1) $ (354) Other comprehensive loss before reclassifications (31) — (3) — — (34) Amounts reclassified from other comprehensive loss — 2 — — — 2 Balance at June 30, 2020 (335) (47) (3) — (1) (386) Other comprehensive loss before reclassifications 67 — 3 (1) — 69 Balance at June 30, 2021 (268) (47) — (1) (1) (317) Other comprehensive income (loss) before reclassifications (110) 8 27 (3) — (78) Amounts reclassified from other comprehensive loss — 1 — — — 1 Balance at June 30, 2022 $ (378) $ (38) $ 27 $ (4) $ (1) $ (394) |
Equity Based Compensation (Tabl
Equity Based Compensation (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | The weighted average of assumptions used in estimating the fair value of stock options granted during each year were as follows: Fiscal Year Ended June 30, 2022 2021 2020 Expected volatility 37% 27% 23 % - 24% Expected life (in years) 3.7 6.25 6.25 Risk-free interest rate 0.7% 0.3% 1.7 % - 1.9% Dividend yield None None None |
Disclosure of Share-based Compensation Arrangements by Share-based Payment Award [Table Text Block] | The following table summarizes stock option activity and shares subject to outstanding options for the fiscal year ended June 30, 2022 : Time Weighted Average Exercise Price Number of Shares Weighted Average Contractual Term Aggregate Intrinsic Value Outstanding as of June 30, 2021 $ 49.77 1,280,174 4.92 $ 74,696,700 Granted 113.00 182,751 — — Exercised 42.11 386,456 — 29,329,353 Forfeited 39.43 17,559 — — Expired / Canceled 36.97 3,399 — — Outstanding as of June 30, 2022 63.74 1,055,511 6.91 47,013,454 Vest and expected to vest as of June 30, 2022 63.74 1,055,511 6.91 47,013,454 Vested and exercisable as of June 30, 2022 $ 43.80 437,034 5.76 $ 27,748,162 |
Schedule of Nonvested Restricted Stock Units Activity [Table Text Block] | The following table summarizes activity in unvested time-based restricted stock units and restricted stock for the fiscal year ended June 30, 2022: Time-Based Units and Shares Weighted Average Grant-Date Fair Value Unvested as of June 30, 2021 764,356 $ 65.54 Granted 324,091 117.52 Vested 292,945 52.11 Cancelled/forfeited/adjusted 73,064 96.04 Unvested as of June 30, 2022 722,438 91.42 |
Schedule of Nonvested Performance-based Units Activity [Table Text Block] | Adjusted EPS and RTSR-Based Performance Share Units and Performance Shares The following table summarizes activity in unvested performance share units and performance shares for the fiscal year ended June 30, 2022: Performance-Based Units and Shares Weighted Average Grant-Date Fair Value Target Number Unvested as of June 30, 2021 392,095 $ 58.16 Target Number Granted 103,946 113.57 Target Number Vested 168,325 43.84 Target Number Cancelled/forfeited/adjusted 21,970 88.57 Target Number Unvested as of June 30, 2022 305,746 $ 83.75 |
Fair Value Measurements, Nonrecurring | Valuation of RTSR Performance Shares and Performance Share Units The fair value of each RTSR performance share unit and performance share is determined using the Monte Carlo pricing model because the number of shares to be awarded is subject to a market condition. The Monte Carlo simulation is a generally accepted statistical technique used to simulate a range of possible future outcomes. Because the valuation model considers a range of possible outcomes, compensation cost is recognized regardless of whether the market condition is actually satisfied. The assumptions used in estimating the fair value of the RTSR performance share units and performance shares granted during each year were as follows: Fiscal Year Ended June 30, 2022 2021 Expected volatility 39 % - 41% 39 % - 42% Expected life (in years) 2.4 - 2.9 2.4 - 2.9 Risk-free interest rates 0.3 % - 1.5% 0.1 % - 0.2% Dividend yield None None |
Nonvested Restricted Stock Shares Activity | The following table summarizes activity in unvested RTSR performance share units and performance shares for the fiscal year ended June 30, 2022 RTSR Units and Shares Weighted Average Grant-Date Fair Value Target Number Unvested as of June 30, 2021 327,028 $ 68.92 Target Number Granted 107,197 110.34 Target Number Vested 132,565 47.70 Target Number Cancelled/forfeited/adjusted 20,345 95.70 Target Number Unvested as of June 30, 2022 281,315 $ 91.04 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Leases [Abstract] | |
Schedule of Operating and Financing Leases Presented in Balance Sheet | Supplemental information concerning the leases recorded in the Company's consolidated balance sheet as of June 30, 2022 is detailed in the following table: (Dollars in millions) Line item in the consolidated balance sheet Balance at Right-of-use assets: Finance leases Property, plant, and equipment, net $ 178 Operating leases Other long-term assets 93 Current lease liabilities: Finance leases Current portion of long-term obligations and other short-term borrowings 17 Operating leases Other accrued liabilities 14 Non-current lease liabilities: Finance leases Long-term obligations, less current portion 217 Operating leases Other liabilities $ 85 |
Lease, Cost | The components of the net lease costs for the fiscal year ended June 30, 2022 reflected in the Company's consolidated statement of operations were as follows: (Dollars in millions) Fiscal Year Ended Financing lease costs: Amortization of right-of-use assets $ 17 Interest on lease liabilities 12 Total 29 Operating lease costs 28 Variable lease costs 8 Total lease costs $ 65 The short-term lease cost amounted to $8 million during the fiscal year ended June 30, 2022. The weighted average remaining lease term and weighted average discount rate related to the Company's right-of-use assets and lease liabilities as of June 30, 2022 are as follows: Weighted average remaining lease term (years): Finance leases 17.7 Operating leases 13.7 Weighted average discount rate: Finance leases 6.1 % Operating leases 4.3 % |
Schedule of Cash Flow, Supplemental Disclosures | Supplemental information concerning the cash-flow impact arising from the Company's leases for the fiscal year ended June 30, 2022 recorded in the Company's unaudited consolidated statement of cash flows is detailed in the following table (in millions): Fiscal Year Ended Cash paid for amounts included in lease liabilities: Financing cash flows used for finance leases $ 15 Operating cash flows used for finance leases 11 Operating cash flows used for operating leases 19 Non-cash transactions: Right-of-use assets obtained in exchange for new finance lease liabilities 59 Right-of-use assets obtained in exchange for new operating lease liabilities $ 31 |
Schedule of Maturities of Lease Liabilities | As of June 30, 2022, the Company expects that its future minimum lease payments will become due and payable as follows: (Dollars in millions) Financing Leases Operating Leases Total 2023 $ 29 $ 17 $ 46 2024 28 14 42 2025 25 11 36 2026 22 11 33 2027 22 11 33 Thereafter 238 74 312 Total minimum lease payments 364 138 502 Less: interest 130 39 169 Total lease liabilities $ 234 $ 99 $ 333 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended | |
Jun. 30, 2022 | ||
Segment Reporting [Abstract] | ||
Net Revenue and Segment EBITDA | The following table includes Segment EBITDA for each of the Company's current reporting segments during the fiscal years ended June 30, 2022, 2021, and 2020: (Dollars in millions) Fiscal Year Ended June 30, 2022 2021 2020 Segment EBITDA reconciled to net earnings: Biologics $ 798 $ 608 $ 237 Softgel and Oral Technologies 292 237 257 Oral and Specialty Delivery 192 160 201 Clinical Supply Services 110 108 91 Subtotal $ 1,392 $ 1,113 $ 786 Reconciling items to net earnings Unallocated costs (1) (286) 1 (146) Depreciation and amortization (378) (289) (254) Interest expense, net (123) (110) (126) Income tax expense (86) (130) (39) Net earnings $ 519 $ 585 $ 221 (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: (Dollars in millions) Fiscal Year Ended June 30, 2022 2021 2020 Impairment charges and gain/loss on sale of assets (a) $ (31) $ (9) $ (5) Stock-based compensation (54) (51) (48) Restructuring and other special items (b) (55) (31) (42) Gain (loss) on sale of subsidiary (c) 1 182 (1) Other expense, net (e) (28) (3) (8) Non-allocated corporate costs, net (119) (87) (42) Total unallocated costs $ (286) $ 1 $ (146) (a) For the fiscal year ended June 30, 2022, impairment charges are primarily due to fixed asset impairment charges associated with dedicated equipment for a product the Company no longer manufactures in its respiratory and specialty platform and obsolete equipment in its Biologics platform. (b) Restructuring and other special items for the fiscal year ended June 30, 2022 include (i) transaction and integration costs primarily associated with the Princeton, Bettera Wellness, Delphi, Hepatic, Acorda and RheinCell transactions and (ii) unrealized losses on venture capital investments. Restructuring and other special items for the fiscal year ended June 30, 2021 include transaction and integration costs associated with the Anagni, Italy facility acquisition and the MaSTherCell, Skeletal, Delphi, and Acorda transactions, in addition to restructuring costs associated with the closure of the Company's Clinical Supply Services facility in Bolton, U.K. Restructuring and other special items during the fiscal year ended June 30, 2020 include transaction and integration costs associated with the Company’s cell and gene therapy acquisitions and the disposal of a facility in Australia. (c) Gain on sale of subsidiary for the fiscal years ended June 30, 2022 and 2021 is affiliated with the sale of the Blow-Fill-Seal Business. Loss on sale of subsidiary for the fiscal year ended June 30, 2020 is affiliated with the disposal of a facility in Australia. (d) Refer to Note 15, Other expense, net , for details of financing charges and foreign currency translation adjustments recorded within other expense, net. | [1],[2],[3],[4] |
Total Assets for Each Segment and Reconciling in Consolidated Financial Statements | The following table includes total assets for each segment, as well as reconciling items necessary to total the amounts reported in the consolidated balance sheets. Total Assets (Dollars in millions) June 30, 2022 June 30, 2021 Biologics $ 5,734 $ 4,973 Softgel and Oral Technologies 2,685 1,604 Oral and Specialty Delivery 1,006 1,269 Clinical Supply Services 700 483 Corporate and eliminations 382 783 Total assets $ 10,507 $ 9,112 | |
Capital Expenditures by Segment | Capital Expenditures Fiscal Year Ended June 30, (Dollars in millions) 2022 2021 2020 Biologics $ 453 $ 516 $ 330 Softgel and Oral Technologies 109 61 54 Oral and Specialty Delivery 57 64 55 Clinical Supply Services 17 26 10 Corporate 30 19 17 Total capital expenditures $ 666 $ 686 $ 466 | |
Presentation of revenue and long-lived assets by geographic area | The following table presents long-lived assets (1) by geographic area: Long-Lived Assets (1) (Dollars in millions) June 30, 2022 June 30, 2021 United States $ 2,267 $ 1,867 Europe 747 541 Other 113 116 Total $ 3,127 $ 2,524 (1) Long-lived assets include property, plant, and equipment, net of accumulated depreciation. | |
[1] Restructuring and other special items for the fiscal year ended June 30, 2021 include transaction and integration costs associated with the Anagni, Italy facility acquisition and the MaSTherCell, Skeletal, Delphi, and Acorda transactions, in addition to restructuring costs associated with the closure of the Company's Clinical Supply Services facility in Bolton, U.K. Restructuring and other special items during the fiscal year ended June 30, 2020 include transaction and integration costs associated with the Company’s cell and gene therapy acquisitions and the disposal of a facility in Australia. Other expense, net , for details of financing charges and foreign currency translation adjustments recorded within other expense, net. |
Supplemental Balance Sheet In_2
Supplemental Balance Sheet Information (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Balance Sheet Related Disclosures [Abstract] | |
Work-in-Process and Finished Goods Inventories Include Raw Materials, Labor and Overhead | Work-in-process and inventories include raw materials, labor, and overhead. Total inventories consist of the following: (Dollars in millions) June 30, June 30, Raw materials and supplies $ 651 $ 469 Work-in-process 109 151 Total inventories, gross 760 620 Inventory cost adjustment (58) (57) Total inventories $ 702 $ 563 |
Prepaid and Other Assets | Prepaid expenses and other current assets consist of the following: (Dollars in millions) June 30, June 30, Prepaid expenses $ 61 $ 46 Short-term contract assets 398 181 Spare parts supplies 22 30 Prepaid income tax 26 22 Non-U.S. value-added tax 48 50 Other current assets 70 47 Total prepaid expenses and other $ 625 $ 376 |
Property and Equipment | Property, plant, and equipment, net consist of the following: (Dollars in millions) June 30, June 30, Land, buildings, and improvements $ 1,687 $ 1,571 Machinery and equipment 1,891 1,558 Furniture and fixtures 48 31 Construction in progress 848 543 Property and equipment, at cost 4,474 3,703 Accumulated depreciation (1,347) (1,179) Property, plant, and equipment, net $ 3,127 $ 2,524 |
Other Assets Non Current | Other long-term assets consist of the following: (Dollars in millions) June 30, June 30, Operating lease right-of-use-assets $ 93 $ 84 Note receivable 51 47 Pension assets 37 43 Corporate-owned life insurance policies 35 35 Venture capital investments 33 38 Interest rate swap 36 2 Long-term contract assets 43 — Other 21 19 Total other long-term assets $ 349 $ 268 |
Other Accrued Liabilities | Other accrued liabilities consist of the following: (Dollars in millions) June 30, June 30, Contract liability $ 185 $ 305 Accrued employee-related expenses 198 184 Accrued expenses 140 170 Operating lease liabilities 14 16 Restructuring accrual 1 4 Accrued interest 32 27 Accrued income tax 50 30 Total other accrued liabilities $ 620 $ 736 |
Basis of Presentation and Sum_3
Basis of Presentation and Summary of Significant Accounting Policies - Additional Information (Detail) - $ / shares shares in Millions | Jun. 15, 2020 | Feb. 06, 2020 | Jun. 30, 2022 | Jun. 30, 2021 |
Stock Issued During Period, Shares, New Issues | 8 | 8 | ||
Shares Issued, Price Per Share | $ 70.72 | $ 58.58 | ||
Common stock, par value (usd per share) | $ 0.01 | $ 0.01 |
Basis of Presentation and Sum_4
Basis of Presentation and Summary of Significant Accounting Policies Property and Equipment and Other Definite Lived Intangible Assets (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Depreciation expense | $ 255 | $ 196 | $ 165 |
Interest Costs Capitalized | 15 | 17 | 11 |
Gain (Loss) on Sale of Assets and Asset Impairment Charges | $ (31) | $ (9) | $ (5) |
Building And Improvements [Member] | Minimum [Member] | |||
Property, Plant and Equipment, Useful Life | 5 years | ||
Building And Improvements [Member] | Maximum [Member] | |||
Property, Plant and Equipment, Useful Life | 50 years | ||
Machinery and Equipment [Member] | Minimum [Member] | |||
Property, Plant and Equipment, Useful Life | 3 years | ||
Machinery and Equipment [Member] | Maximum [Member] | |||
Property, Plant and Equipment, Useful Life | 10 years | ||
Furniture and Fixtures [Member] | Minimum [Member] | |||
Property, Plant and Equipment, Useful Life | 3 years | ||
Furniture and Fixtures [Member] | Maximum [Member] | |||
Property, Plant and Equipment, Useful Life | 7 years |
Basis of Presentation and Sum_5
Basis of Presentation and Summary of Significant Accounting Policies Research and Development Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Research and Development Expense | $ 23 | $ 21 | $ 21 |
Basis of Presentation and Sum_6
Basis of Presentation and Summary of Significant Accounting Policies Recent Financial Accounting Standards (Details) $ in Millions | Jun. 30, 2022 USD ($) |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Operating Lease, Liability | $ 99 |
Operating Lease, Liability, Statement of Financial Position [Extensible List] | Other Liabilities |
Revenue Recognition Disaggregat
Revenue Recognition Disaggregation of Revenue by type of activity and reporting segment (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Disaggregation of Revenue [Line Items] | |||
Inter-segment revenue elimination | $ (17) | $ (19) | $ (10) |
Net revenue | 4,828 | 3,998 | 3,094 |
Softgel and Oral Technologies [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Net revenue | 1,246 | 1,012 | 1,062 |
Softgel and Oral Technologies [Member] | Manufacturing & Commercial Product Supply [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Net revenue | 1,081 | 877 | 955 |
Softgel and Oral Technologies [Member] | Development Services [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Net revenue | 165 | 135 | 107 |
Softgel and Oral Technologies [Member] | Clinical Supply Services [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Net revenue | 0 | 0 | 0 |
Biologics [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Net revenue | 2,549 | 1,928 | 1,021 |
Biologics [Member] | Manufacturing & Commercial Product Supply [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Net revenue | 607 | 533 | 332 |
Biologics [Member] | Development Services [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Net revenue | 1,942 | 1,395 | 689 |
Biologics [Member] | Clinical Supply Services [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Net revenue | 0 | 0 | 0 |
Oral and Specialty Drug Delivery [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Net revenue | 650 | 686 | 676 |
Oral and Specialty Drug Delivery [Member] | Manufacturing & Commercial Product Supply [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Net revenue | 403 | 455 | 450 |
Oral and Specialty Drug Delivery [Member] | Development Services [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Net revenue | 247 | 231 | 226 |
Oral and Specialty Drug Delivery [Member] | Clinical Supply Services [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Net revenue | 0 | 0 | 0 |
Clinical Supply Services [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Net revenue | 400 | 391 | 345 |
Clinical Supply Services [Member] | Manufacturing & Commercial Product Supply [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Net revenue | 0 | 0 | 0 |
Clinical Supply Services [Member] | Development Services [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Net revenue | 0 | 0 | 0 |
Clinical Supply Services [Member] | Clinical Supply Services [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Net revenue | 400 | 391 | 345 |
Total Catalent before inter-segment revenue elimination [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Net revenue | 4,845 | 4,017 | 3,104 |
Total Catalent before inter-segment revenue elimination [Member] | Manufacturing & Commercial Product Supply [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Net revenue | 2,091 | 1,865 | 1,737 |
Total Catalent before inter-segment revenue elimination [Member] | Development Services [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Net revenue | 2,354 | 1,761 | 1,022 |
Total Catalent before inter-segment revenue elimination [Member] | Clinical Supply Services [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Net revenue | $ 400 | $ 391 | $ 345 |
Revenue Recognition Disaggreg_2
Revenue Recognition Disaggregation of Revenue by Geography (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Disaggregation of Revenue [Line Items] | |||
Elimination of revenue attributable to multiple locations | $ (115) | $ (95) | $ (80) |
Net revenue | 4,828 | 3,998 | 3,094 |
Europe | |||
Disaggregation of Revenue [Line Items] | |||
Net revenue | 1,506 | 1,343 | 976 |
International Other | |||
Disaggregation of Revenue [Line Items] | |||
Net revenue | 327 | 288 | 376 |
United States [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Net revenue | $ 3,110 | $ 2,462 | $ 1,822 |
Revenue Recognition Contractual
Revenue Recognition Contractual Liabilities (Details) - USD ($) $ in Millions | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Revenue Recognition and Deferred Revenue [Abstract] | ||
Contract with Customer, Liability | $ 194 | $ 321 |
Contract with Customer, Liability, Revenue Recognized | $ (272) |
Revenue Recognition Contractu_2
Revenue Recognition Contractual Assets (Details) - USD ($) | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Text Block [Abstract] | ||
Contract with Customer, Asset | $ 398,000,000 | |
Contract with Customer, Asset | 441 | $ 181,000,000 |
Increase (Decrease) in Contract with Customer, Asset | $ 260 |
Business Combinations Purchase
Business Combinations Purchase Agreement (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |||||||||
Oct. 01, 2021 | Aug. 01, 2021 | Feb. 23, 2021 | Feb. 11, 2021 | Nov. 16, 2020 | Apr. 30, 2022 | Oct. 31, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | ||
Business Acquisition [Line Items] | |||||||||||
Payment for acquisitions, net of cash acquired | $ (1,199,000,000) | $ (147,000,000) | $ (379,000,000) | ||||||||
Common stock, par value (usd per share) | $ 0.01 | $ 0.01 | |||||||||
Goodwill, Acquired During Period | $ 572,000,000 | $ 56,000,000 | [1] | ||||||||
3.500% Senior US Denominated Notes Member | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Stated interest rate (percent) | 350% | ||||||||||
Skeletal Cell Therapy Support SA | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Business Combination, Consideration Transferred | $ 15,000,000 | ||||||||||
Goodwill, Acquired During Period | $ 9,000,000 | ||||||||||
Hepatic Cell Therapy Support SA | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Payment for acquisitions, net of cash acquired | $ (15,000,000) | ||||||||||
Acorda Therapeutics, Inc | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Business Combination, Consideration Transferred | $ 83,000,000 | ||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment | 79,000,000 | ||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Inventory | 2,000,000 | ||||||||||
Goodwill, Acquired During Period | $ 2,000,000 | ||||||||||
Delphi Genetics SA | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Business Combination, Consideration Transferred | 50,000,000 | ||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment | 4,000,000 | ||||||||||
Goodwill, Acquired During Period | 43,000,000 | ||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Long-term Debt | 6,000,000 | ||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets | 3,000,000 | ||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 7,000,000 | ||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities | $ 1,000,000 | ||||||||||
Bettera Holdings, LLC | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Payment for acquisitions, net of cash acquired | $ (1) | ||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment | 72,000,000 | ||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Inventory | 31,000,000 | ||||||||||
Goodwill, Acquired During Period | $ 531,000,000 | ||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 361,000,000 | ||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities | $ 11,000,000 | ||||||||||
RheinCell Therapeutics | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Payment for acquisitions, net of cash acquired | $ (26,000,000) | ||||||||||
Goodwill, Acquired During Period | 17,000,000 | ||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 14,000,000 | ||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities | $ 1,000,000 | ||||||||||
Princeton Cell Therapy | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Payment for acquisitions, net of cash acquired | $ (45,000,000) | ||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment | 22,000,000 | ||||||||||
Goodwill, Acquired During Period | 24,000,000 | ||||||||||
Vaccine Manufacturing and Innovation Centre | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Payment for acquisitions, net of cash acquired | (134,000,000) | ||||||||||
Business Acquisition, Transaction Costs | 9,000,000 | ||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment | 165,000,000 | ||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets | $ 1,000,000 | ||||||||||
Blow-Fill-Seal Business, Woodstock | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Business Acquisition, Transaction Costs | $ 8,000,000 | ||||||||||
Goodwill, Acquired During Period | 54,000,000 | ||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities | $ 2,000,000 | ||||||||||
Business Combination, Acquired Receivables, Description | $51 million | ||||||||||
[1] |
Business Combinations Net Asset
Business Combinations Net Assets Acquired (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |||||||
Aug. 01, 2021 | Feb. 23, 2021 | Apr. 30, 2022 | Oct. 31, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Oct. 01, 2021 | Mar. 31, 2021 | ||
Net Assets Acquired from Business Combinations | |||||||||
Goodwill, Acquired During Period | $ 572,000,000 | $ 56,000,000 | [1] | ||||||
Notes Receivable Interest Rate | 5% | ||||||||
Delphi Genetics SA | |||||||||
Net Assets Acquired from Business Combinations | |||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment | $ 4,000,000 | ||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 7,000,000 | ||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities | (1,000,000) | ||||||||
Goodwill, Acquired During Period | 43,000,000 | ||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets | $ 3,000,000 | ||||||||
Bettera Holdings, LLC | |||||||||
Net Assets Acquired from Business Combinations | |||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment | $ 72,000,000 | ||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Inventory | 31,000,000 | ||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Other | 4,000,000 | ||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 361,000,000 | ||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Other Noncurrent Assets | 12,000,000 | ||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities | (22,000,000) | ||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities | (11,000,000) | ||||||||
Goodwill, Acquired During Period | $ 531,000,000 | ||||||||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net | 1,017,000,000 | ||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Cash and Equivalents | 23,000,000 | ||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Receivables | 16,000,000 | ||||||||
RheinCell Therapeutics | |||||||||
Net Assets Acquired from Business Combinations | |||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $ 14,000,000 | ||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities | (4,000,000) | ||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities | (1,000,000) | ||||||||
Goodwill, Acquired During Period | $ 17,000,000 | ||||||||
Hepatic Cell Therapy Support SA | |||||||||
Net Assets Acquired from Business Combinations | |||||||||
Asset Acquisition, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Long-term Debt | $ 1,000,000 | ||||||||
Asset Acquisition, Recognized Identifiable Assets Acquired and Liabilities Assumed | 3,000,000 | ||||||||
Asset Acquisition, Recognized Identifiable Assets Acquired and Liabilities Assumed, PPE | $ 13,000,000 | ||||||||
Princeton Cell Therapy | |||||||||
Net Assets Acquired from Business Combinations | |||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment | $ 22,000,000 | ||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Other Noncurrent Assets | 10,000,000 | ||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities | (1,000,000) | ||||||||
Goodwill, Acquired During Period | 24,000,000 | ||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Other | 10,000,000 | ||||||||
Vaccine Manufacturing and Innovation Centre | |||||||||
Net Assets Acquired from Business Combinations | |||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment | 165,000,000 | ||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities | (18,000,000) | ||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets | 1,000,000 | ||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Other | 14,000,000 | ||||||||
Business Acquisition, Transaction Costs | $ 9,000,000 | ||||||||
Customer relationships [Member] | |||||||||
Net Assets Acquired from Business Combinations | |||||||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 13 years | 14 years | |||||||
Customer relationships [Member] | Bettera Holdings, LLC | |||||||||
Net Assets Acquired from Business Combinations | |||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 23,000,000 | ||||||||
Product relationships [Member] | |||||||||
Net Assets Acquired from Business Combinations | |||||||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 8 years | 11 years | |||||||
Core technology [Member] | |||||||||
Net Assets Acquired from Business Combinations | |||||||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 11 years | 19 years | |||||||
Core technology [Member] | Bettera Holdings, LLC | |||||||||
Net Assets Acquired from Business Combinations | |||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $ 338,000,000 | ||||||||
Core Technology Bettera | |||||||||
Net Assets Acquired from Business Combinations | |||||||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 10 years | ||||||||
[1] |
Business Combinations, Divestit
Business Combinations, Divestitures (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||
Feb. 23, 2021 | Mar. 31, 2022 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |||
Business Acquisition [Line Items] | |||||||
Goodwill, Acquired During Period | $ 572,000,000 | $ 56,000,000 | [1] | ||||
Disposal Group, Not Discontinued Operation, Gain (Loss) on Disposal | [2] | 1,000,000 | $ 182,000,000 | $ (1,000,000) | |||
Blow-Fill-Seal Business, Woodstock | |||||||
Business Acquisition [Line Items] | |||||||
Proceeds from Divestiture of Businesses and Interests in Affiliates | 300,000,000 | ||||||
Business Combination, Acquired Receivables, Gross Contractual Amount | 50,000,000 | ||||||
Business Combination, Acquired Receivable, Fair Value | [3] | 47,000,000 | |||||
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High | 50,000,000 | ||||||
Disposal Group, Including Discontinued Operation, Assets | 149,000,000 | ||||||
Goodwill, Acquired During Period | 54,000,000 | ||||||
Disposal Group, Not Discontinued Operation, Gain (Loss) on Disposal | $ 1 | 182,000,000 | |||||
Business Combination, Loan Discount | 3,000,000 | ||||||
Business Acquisition, Transaction Costs | 8,000,000 | ||||||
Business Combination, Working Capital Adjustments | 6,000,000 | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities | 2,000,000 | ||||||
Proceeds From Divestiture Of Businesses, Net Cash Proceeds | 284,000,000 | ||||||
Business Combination, Contingent Consideration, Asset | [4] | 0 | |||||
Business Combination, Consideration Transferred, Other | [5] | 16,000,000 | |||||
Cash and Noncash Divestiture, Amount of Consideration Received | $ 331,000,000 | ||||||
Delphi Genetics SA | |||||||
Business Acquisition [Line Items] | |||||||
Goodwill, Acquired During Period | $ 43,000,000 | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities | $ 1,000,000 | ||||||
[1][2]Gain on sale of subsidiary for the fiscal years ended June 30, 2022 and 2021 is affiliated with the sale of the Blow-Fill-Seal Business. Loss on sale of subsidiary for the fiscal year ended June 30, 2020 is affiliated with the disposal of a facility in Australia.[3]The note receivable, which provides for interest at a rate of 5.0% paid in kind, had an estimated fair value of $47 million and $51 million at June 30, 2021 and June 30, 2022, respectively. The fair value at divestiture date consisted of a $50 million aggregate principal amount less a $3 million discount determined using a discounted cash flow model. Contingencies . $8 million of transaction expenses, a working capital adjustment of $6 million , and a $2 million assumption of liabilities resulting in net cash proceed of |
Goodwill - Carrying Amount of G
Goodwill - Carrying Amount of Goodwill (Detail) - USD ($) | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | ||
Goodwill [Roll Forward] | |||
Beginning balance | $ 2,519,000,000 | $ 2,471,000,000 | |
Goodwill, Acquired During Period | 572,000,000 | 56,000,000 | [1] |
Foreign currency translation adjustments | (85,000,000) | 46,000,000 | |
Ending balance | $ 3,006,000,000 | 2,519,000,000 | |
Goodwill, Written off Related to Sale of Business Unit | $ (54,000,000) | ||
Time [Member] | |||
Goodwill [Roll Forward] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 1,055,511 | 1,280,174 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term | 6 years 10 months 28 days | 4 years 11 months 1 day | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Weighted Average Remaining Contractual Term | 6 years 10 months 28 days | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Weighted Average Remaining Contractual Term | 5 years 9 months 3 days | ||
Reported Value Measurement [Member] | |||
Goodwill [Roll Forward] | |||
Debt Instrument, Fair Value Disclosure | $ 4,243,000,000 | $ 3,277,000,000 | |
3.125% Senior US Denominated Notes | |||
Goodwill [Roll Forward] | |||
Stated interest rate (percent) | 3.125% | ||
3.125% Senior US Denominated Notes | Level 2 [Member] | Reported Value Measurement [Member] | |||
Goodwill [Roll Forward] | |||
Debt Instrument, Fair Value Disclosure | $ 550,000,000 | 550,000,000 | |
3.500% Senior US Denominated Notes Member | |||
Goodwill [Roll Forward] | |||
Stated interest rate (percent) | 350% | ||
3.500% Senior US Denominated Notes Member | Level 2 [Member] | Reported Value Measurement [Member] | |||
Goodwill [Roll Forward] | |||
Debt Instrument, Fair Value Disclosure | $ 650,000,000 | 0 | |
Softgel and Oral Technologies [Member] | |||
Goodwill [Roll Forward] | |||
Beginning balance | 516,000,000 | 505,000,000 | |
Goodwill, Acquired During Period | 531,000,000 | 0 | |
Foreign currency translation adjustments | (24,000,000) | 11,000,000 | |
Ending balance | 1,023,000,000 | 516,000,000 | |
Goodwill, Written off Related to Sale of Business Unit | 0 | ||
Biologics [Member] | |||
Goodwill [Roll Forward] | |||
Beginning balance | 1,531,000,000 | 1,463,000,000 | |
Goodwill, Acquired During Period | 41,000,000 | 54,000,000 | [1] |
Foreign currency translation adjustments | (37,000,000) | 14,000,000 | |
Ending balance | 1,535,000,000 | 1,531,000,000 | |
Goodwill, Written off Related to Sale of Business Unit | 0 | ||
Oral and Specialty Drug Delivery [Member] | |||
Goodwill [Roll Forward] | |||
Beginning balance | 316,000,000 | 355,000,000 | |
Goodwill, Acquired During Period | 0 | 2,000,000 | |
Foreign currency translation adjustments | (15,000,000) | 13,000,000 | |
Ending balance | 301,000,000 | 316,000,000 | |
Goodwill, Written off Related to Sale of Business Unit | 54,000,000 | ||
Clinical Supply Services [Member] | |||
Goodwill [Roll Forward] | |||
Beginning balance | 156,000,000 | 148,000,000 | |
Goodwill, Acquired During Period | 0 | 0 | |
Foreign currency translation adjustments | (9,000,000) | 8,000,000 | |
Ending balance | $ 147,000,000 | 156,000,000 | |
Goodwill, Written off Related to Sale of Business Unit | $ 0 | ||
[1] |
Definite Lived Long-Lived Ass_3
Definite Lived Long-Lived Assets - Other Intangible Assets Subject to Amortization (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Intangibles [Line Items] | ||
Gross Carrying Value | $ 1,763 | $ 1,462 |
Accumulated Amortization | (703) | (645) |
Net Carrying Value | $ 1,060 | $ 817 |
Core technology [Member] | ||
Intangibles [Line Items] | ||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 11 years | 19 years |
Gross Carrying Value | $ 480 | $ 140 |
Accumulated Amortization | (121) | (94) |
Net Carrying Value | $ 359 | $ 46 |
Customer relationships [Member] | ||
Intangibles [Line Items] | ||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 13 years | 14 years |
Gross Carrying Value | $ 1,020 | $ 1,024 |
Accumulated Amortization | (366) | (306) |
Net Carrying Value | $ 654 | $ 718 |
Product relationships [Member] | ||
Intangibles [Line Items] | ||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 8 years | 11 years |
Gross Carrying Value | $ 239 | $ 281 |
Accumulated Amortization | (204) | (237) |
Net Carrying Value | $ 35 | $ 44 |
Other Intangible Assets [Member] | ||
Intangibles [Line Items] | ||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 4 years | 5 years |
Gross Carrying Value | $ 24 | $ 17 |
Accumulated Amortization | (12) | (8) |
Net Carrying Value | $ 12 | $ 9 |
Definite Lived Long-Lived Ass_4
Definite Lived Long-Lived Assets - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Finite lived intangible assets disclosure [Abstract] | |||
Amortization expense | $ 123 | $ 93 | $ 89 |
Definite Lived Long-Lived Ass_5
Definite Lived Long-Lived Assets - Future Amortization Expense (Detail) $ in Millions | Jun. 30, 2022 USD ($) |
Finite lived intangible assets disclosure [Abstract] | |
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | $ 132 |
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 131 |
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 129 |
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 121 |
Finite-Lived Intangible Assets, Amortization Expense, Year Five | 105 |
Finite-Lived Intangible Asset, Expected Amortization, after Year Five | 442 |
Finite-Lived Intangible Asset, Expected Amortization. Total | $ 1,060 |
Restructuring and Other Costs_2
Restructuring and Other Costs (Details) $ in Millions | 12 Months Ended | ||
Jun. 30, 2022 USD ($) employees | Jun. 30, 2021 USD ($) | Jun. 30, 2020 USD ($) | |
Restructuring Cost and Reserve [Line Items] | |||
Employee-related reorganization | $ 9 | $ 8 | $ 6 |
Facility exit and other costs | 1 | 2 | 0 |
Restructuring, Settlement and Impairment Provisions | 10 | $ 10 | $ 6 |
Bolton CS [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring, Settlement and Impairment Provisions | $ 3 | ||
Bolton CS [Member] | Maximum [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and Related Cost, Expected Number of Positions Eliminated | employees | 170 | ||
Restructuring and Related Cost, Expected Cost | $ 10 |
Long-Term Obligations and Oth_3
Long-Term Obligations and Other Short-Term Borrowings - Additional Information (Detail) € in Millions | 1 Months Ended | 12 Months Ended | |||||
Oct. 23, 2017 USD ($) | Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) | Jun. 30, 2022 EUR (€) | Feb. 28, 2021 USD ($) | Oct. 18, 2017 | ||
Schedule Of Debt [Line Items] | |||||||
Debt, Current | $ 31,000,000 | $ 75,000,000 | |||||
Long-term Debt and Finance Lease Obligations | 4,171,000,000 | 3,166,000,000 | |||||
Debt Instrument, Unused Borrowing Capacity, Amount | 721,000,000 | ||||||
Letters of Credit Outstanding, Amount | 4,000,000 | ||||||
Payments to Acquire Businesses, Gross | $ 950,000,000 | ||||||
Installment Payment for Acquisition, Next Twelve Months | 50,000,000 | ||||||
Unamortized Debt Issuance Expense | 42,000,000 | 39,000,000 | |||||
Amortization of Debt Issuance Costs | $ 7,000,000 | 6,000,000 | |||||
Debt Instrument Quarterly Amortization Rate | 0.25% | 0.25% | |||||
Senior Secured Credit Facility [Member] | |||||||
Schedule Of Debt [Line Items] | |||||||
Pledge Percentage Of Capital Stock | 100% | ||||||
Pledge Percentage Of Equity Interest | 100% | ||||||
Maximum Percentage Of Voting Stock from non US subsidiary | 65% | ||||||
Four Point Seven Five Percent Senior Euro Denominated Notes [Member] | |||||||
Schedule Of Debt [Line Items] | |||||||
Stated interest rate (percent) | 4.75% | 4.75% | |||||
U.S. Dollar-denominated 4.875% Senior Notes [Member] | |||||||
Schedule Of Debt [Line Items] | |||||||
Stated interest rate (percent) | 4.875% | ||||||
U.S Dollar-denominated 5.00% Senior Notes [Member] | |||||||
Schedule Of Debt [Line Items] | |||||||
Debt and Capital Lease Obligations | $ 500,000,000 | ||||||
Stated interest rate (percent) | 5% | 5% | |||||
2.375% Senior Euro Denominated Notes [Member] | |||||||
Schedule Of Debt [Line Items] | |||||||
Debt and Capital Lease Obligations | € | € 825 | ||||||
Stated interest rate (percent) | 2.375% | 2.375% | |||||
Senior Unsecured Term Loan Facility [Member] | |||||||
Schedule Of Debt [Line Items] | |||||||
Debt and Capital Lease Obligations | $ 0 | 50,000,000 | |||||
Capital Lease Obligations [Member] | |||||||
Schedule Of Debt [Line Items] | |||||||
Debt and Capital Lease Obligations | 234,000,000 | 193,000,000 | |||||
Other Obligations [Member] | |||||||
Schedule Of Debt [Line Items] | |||||||
Debt and Capital Lease Obligations | $ 2,000,000 | 3,000,000 | |||||
3.125% Senior US Denominated Notes | |||||||
Schedule Of Debt [Line Items] | |||||||
Stated interest rate (percent) | 3.125% | 3.125% | |||||
Term Loan Three Facility Dollar Denominated [Member] | |||||||
Schedule Of Debt [Line Items] | |||||||
Debt and Capital Lease Obligations | $ 1,433,000,000 | 997,000,000 | |||||
Term Loan Two Facility Dollar Denominated [Member] | |||||||
Schedule Of Debt [Line Items] | |||||||
Debt and Capital Lease Obligations | $ 450,000,000 | ||||||
3.500% Senior US Denominated Notes Member | |||||||
Schedule Of Debt [Line Items] | |||||||
Stated interest rate (percent) | 350% | 350% | |||||
Accrued Liabilities [Member] | |||||||
Schedule Of Debt [Line Items] | |||||||
Payments to Acquire Businesses, Gross | $ 200,000,000 | ||||||
Reported Value Measurement [Member] | |||||||
Schedule Of Debt [Line Items] | |||||||
Debt and Capital Lease Obligations | $ 4,202,000,000 | 3,241,000,000 | |||||
Debt Instrument, Fair Value Disclosure | 4,243,000,000 | 3,277,000,000 | |||||
Reported Value Measurement [Member] | Debt Issuance Costs | |||||||
Schedule Of Debt [Line Items] | |||||||
Debt and Capital Lease Obligations | 41,000,000 | 36,000,000 | |||||
Level 2 [Member] | Reported Value Measurement [Member] | U.S Dollar-denominated 5.00% Senior Notes [Member] | |||||||
Schedule Of Debt [Line Items] | |||||||
Debt Instrument, Fair Value Disclosure | 500,000,000 | 500,000,000 | |||||
Level 2 [Member] | Reported Value Measurement [Member] | 2.375% Senior Euro Denominated Notes [Member] | |||||||
Schedule Of Debt [Line Items] | |||||||
Debt Instrument, Fair Value Disclosure | [1] | 874,000,000 | 984,000,000 | ||||
Level 2 [Member] | Reported Value Measurement [Member] | 3.125% Senior US Denominated Notes | |||||||
Schedule Of Debt [Line Items] | |||||||
Debt Instrument, Fair Value Disclosure | 550,000,000 | 550,000,000 | |||||
Level 2 [Member] | Reported Value Measurement [Member] | 3.500% Senior US Denominated Notes Member | |||||||
Schedule Of Debt [Line Items] | |||||||
Debt Instrument, Fair Value Disclosure | $ 650,000,000 | $ 0 | |||||
[1]The decrease in euro-denominated debt at June 30, 2022 compared to the prior year is primarily due to fluctuations in foreign currency exchange rates. |
Long-Term Obligations and Oth_4
Long-Term Obligations and Other Short-Term Borrowings- Maturities (Details) $ in Millions | Jun. 30, 2022 USD ($) |
Long-term and Short-term Debt [Abstract] | |
Long-term Debt and Capital Lease Obligations, Repayments of Principal in Next Twelve Months | $ 31 |
Long Term Debt and Capital Lease Obligations Repayments of Principal in Year Two | 31 |
Long Term Debt and Capital Lease Obligations Repayments of Principal in Year Three | 29 |
Long Term Debt and Capital Lease Obligations Repayments of Principal in Year Four | 26 |
Long Term Debt and Capital Lease Obligations Repayments of Principal in Year Five | 27 |
Long Term Debt and Capital Lease Obligations Repayments of Principal After Year Five | 4,099 |
Total | $ 4,243 |
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) € in Millions | Jun. 30, 2022 USD ($) | Jun. 30, 2022 EUR (€) | Jun. 30, 2021 USD ($) | |
Reported Value Measurement [Member] | ||||
Fair Value Measurements Of Financial Instruments [Line Items] | ||||
Debt Instrument, Fair Value Disclosure | $ 4,243,000,000 | $ 3,277,000,000 | ||
Debt and Capital Lease Obligations | 4,202,000,000 | 3,241,000,000 | ||
Estimate of Fair Value Measurement [Member] | ||||
Fair Value Measurements Of Financial Instruments [Line Items] | ||||
Debt Instrument, Fair Value Disclosure | 3,839,000,000 | 3,265,000,000 | ||
Debt and Capital Lease Obligations | 3,839,000,000 | 3,265,000,000 | ||
U.S Dollar-denominated 5.00% Senior Notes [Member] | ||||
Fair Value Measurements Of Financial Instruments [Line Items] | ||||
Debt and Capital Lease Obligations | 500,000,000 | |||
U.S Dollar-denominated 5.00% Senior Notes [Member] | Level 2 [Member] | Reported Value Measurement [Member] | ||||
Fair Value Measurements Of Financial Instruments [Line Items] | ||||
Debt Instrument, Fair Value Disclosure | 500,000,000 | 500,000,000 | ||
U.S Dollar-denominated 5.00% Senior Notes [Member] | Level 2 [Member] | Estimate of Fair Value Measurement [Member] | ||||
Fair Value Measurements Of Financial Instruments [Line Items] | ||||
Debt Instrument, Fair Value Disclosure | 483,000,000 | 539,000,000 | ||
2.375% Senior Euro Denominated Notes [Member] | ||||
Fair Value Measurements Of Financial Instruments [Line Items] | ||||
Debt and Capital Lease Obligations | € | € 825 | |||
2.375% Senior Euro Denominated Notes [Member] | Level 2 [Member] | Reported Value Measurement [Member] | ||||
Fair Value Measurements Of Financial Instruments [Line Items] | ||||
Debt Instrument, Fair Value Disclosure | [1] | 874,000,000 | 984,000,000 | |
2.375% Senior Euro Denominated Notes [Member] | Level 2 [Member] | Estimate of Fair Value Measurement [Member] | ||||
Fair Value Measurements Of Financial Instruments [Line Items] | ||||
Debt Instrument, Fair Value Disclosure | 744,000,000 | 993,000,000 | ||
3.125% Senior US Denominated Notes | Level 2 [Member] | Reported Value Measurement [Member] | ||||
Fair Value Measurements Of Financial Instruments [Line Items] | ||||
Debt Instrument, Fair Value Disclosure | 550,000,000 | 550,000,000 | ||
3.125% Senior US Denominated Notes | Level 2 [Member] | Estimate of Fair Value Measurement [Member] | ||||
Fair Value Measurements Of Financial Instruments [Line Items] | ||||
Debt Instrument, Fair Value Disclosure | 476,000,000 | 524,000,000 | ||
Senior Secured Credit Facilities & Other [Member] | Level 2 [Member] | Reported Value Measurement [Member] | ||||
Fair Value Measurements Of Financial Instruments [Line Items] | ||||
Debt Instrument, Fair Value Disclosure | 1,669,000,000 | 1,243,000,000 | ||
Senior Secured Credit Facilities & Other [Member] | Level 2 [Member] | Estimate of Fair Value Measurement [Member] | ||||
Fair Value Measurements Of Financial Instruments [Line Items] | ||||
Debt Instrument, Fair Value Disclosure | 1,575,000,000 | 1,209,000,000 | ||
Debt Issuance Costs | Reported Value Measurement [Member] | ||||
Fair Value Measurements Of Financial Instruments [Line Items] | ||||
Debt and Capital Lease Obligations | 41,000,000 | 36,000,000 | ||
Debt Issuance Costs | Estimate of Fair Value Measurement [Member] | ||||
Fair Value Measurements Of Financial Instruments [Line Items] | ||||
Debt and Capital Lease Obligations | 0 | 0 | ||
3.500% Senior US Denominated Notes Member | Level 2 [Member] | Reported Value Measurement [Member] | ||||
Fair Value Measurements Of Financial Instruments [Line Items] | ||||
Debt Instrument, Fair Value Disclosure | 650,000,000 | $ 0 | ||
3.500% Senior US Denominated Notes Member | Level 2 [Member] | Estimate of Fair Value Measurement [Member] | ||||
Fair Value Measurements Of Financial Instruments [Line Items] | ||||
Debt Instrument, Fair Value Disclosure | $ 561,000,000 | |||
[1]The decrease in euro-denominated debt at June 30, 2022 compared to the prior year is primarily due to fluctuations in foreign currency exchange rates. |
Long-Term Obligations and Oth_6
Long-Term Obligations and Other Short-Term Borrowings Interest Rate (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Feb. 28, 2021 | |
Term Loan Three Facility Dollar Denominated [Member] | |||
Debt Instrument [Line Items] | |||
Debt and Capital Lease Obligations | $ 1,433 | $ 997 | |
Amended Debt Instrument Quarterly Amortization Rate | 0.2506% | ||
Term Loan Three Facility Dollar Denominated [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Basis Spread on Variable Rate | 2% | ||
Term Loan Three Facility Dollar Denominated [Member] | London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Basis Spread on Variable Rate | 0.50% | ||
Senior Unsecured Term Loan Facility [Member] | |||
Debt Instrument [Line Items] | |||
Debt and Capital Lease Obligations | $ 0 | $ 50 | |
Revolving Credit Facility | London Interbank Offered Rate (LIBOR) [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Basis Spread on Variable Rate | 2.25% | ||
Revolving Credit Facility | London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Basis Spread on Variable Rate | 2% | ||
Term Loan Two Facility Dollar Denominated [Member] | |||
Debt Instrument [Line Items] | |||
Debt and Capital Lease Obligations | $ 450 |
Earnings Per Share Calculations
Earnings Per Share Calculations of Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Earnings Per Share [Abstract] | |||
Net earnings | $ 519 | $ 585 | $ 221 |
Participating Securities, Distributed and Undistributed (Earnings) Loss, Basic | (16) | (56) | (48) |
Net Income (Loss) Available to Common Stockholders, Basic | $ 503 | $ 529 | $ 173 |
Weighted Average Number of Shares Outstanding, Basic | 176 | 168 | 150 |
Dilutive Securities, Effect on Basic Earnings Per Share, Dilutive Convertible Securities | 2 | 2 | 2 |
Weighted Average Number of Shares Outstanding, Diluted | 178 | 170 | 152 |
Earnings Per Share, Basic | $ 2.85 | $ 3.15 | $ 1.16 |
Earnings Per Share, Diluted | $ 2.84 | $ 3.11 | $ 1.14 |
Earnings Per Share Earnings Per
Earnings Per Share Earnings Per Share - Additional Details (Details) - shares shares in Millions | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 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 | 3 | 10 | 13 |
Derivative Instruments and He_3
Derivative Instruments and Hedging Activities - Additional Information (Detail) - USD ($) | 9 Months Ended | 12 Months Ended | ||||
Nov. 23, 2020 | Mar. 31, 2022 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | May 17, 2019 | |
Derivative [Line Items] | ||||||
Derivatives used in Net Investment Hedge, Increase (Decrease), Gross of Tax | $ 121,000,000 | $ (56,000,000) | ||||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | (11,000,000) | (3,000,000) | ||||
Net accumulated gain related to investment hedges | 127,000,000 | |||||
Proceeds from Issuance of Redeemable Preferred Stock | $ 646,000,000 | |||||
Payments of Stock Issuance Costs | 4,000,000 | |||||
Derivative, Gain (Loss) on Derivative, Net | 2,000,000 | 17,000,000 | $ 3,000,000 | |||
Embedded Derivative, Fair Value of Embedded Derivative Liability | $ 9,000,000 | 0 | ||||
Embedded Derivative, Estimate of Embedded Derivative Liability | $ 40,000,000 | |||||
Cash Paid to Settle, Interest Rate Swap Agreement | 2,000,000 | |||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Purchases, Sales, Issues, Settlements | $ 4,000,000 | $ 1 | $ 1,000,000 | |||
Derivative Liability, Statement of Financial Position [Extensible Enumeration] | $ 3,000,000 | |||||
U.S. Denominated Term Loan [Member] | ||||||
Derivative [Line Items] | ||||||
Debt Instrument, Interest Rate, Effective Percentage | 0.9985% | |||||
Total Debt, U.S Denominated Term Loan | $ 500,000,000 |
Fair Value Measures and Discl_3
Fair Value Measures and Disclosures (Details) - USD ($) | Jun. 30, 2022 | Jun. 30, 2021 |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Marketable Securities | $ 89,000,000 | $ 71,000,000 |
Cash Surrender Value, Fair Value Disclosure | 71,000,000 | |
Interest Rate Cash Flow Hedge Asset at Fair Value | 36,000,000 | 2,000,000 |
Trading Securities at Fair Value | 2,000,000 | 1,000,000 |
Series A Preferred Stock derivative liability | 3,000,000 | |
Level 1 [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Marketable Securities | 89,000,000 | |
Premiums Receivable, Fair Value Disclosure | 71,000,000 | |
Interest Rate Cash Flow Hedge Asset at Fair Value | 0 | 0 |
Trading Securities at Fair Value | 2,000,000 | 1,000,000 |
Series A Preferred Stock derivative liability | 0 | |
Level 2 [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Marketable Securities | 0 | |
Premiums Receivable, Fair Value Disclosure | 0 | |
Interest Rate Cash Flow Hedge Asset at Fair Value | 36,000,000 | 2,000,000 |
Trading Securities at Fair Value | 0 | |
Series A Preferred Stock derivative liability | 0 | |
Level 3 [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Marketable Securities | 0 | |
Premiums Receivable, Fair Value Disclosure | 0 | |
Interest Rate Cash Flow Hedge Asset at Fair Value | 0 | |
Trading Securities at Fair Value | $ 0 | 0 |
Series A Preferred Stock derivative liability | $ 3,000,000 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 12 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2019 | |
Income Tax Contingency [Line Items] | ||||
Undistributed Earnings of Foreign Subsidiaries | $ 241,000,000 | |||
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount | 26 | |||
Deferred Tax Assets, Valuation Allowance | 149,000,000 | $ 65,000,000 | ||
Unrecognized Tax Benefits | 5,000,000 | 5,000,000 | $ 4,000,000 | $ 4,000,000 |
Unrecognized Tax Benefits, Interest on Income Taxes Accrued | 1,000,000 | $ 1,000,000 | ||
Foreign, Net Operating Loss Established [Member] | ||||
Income Tax Contingency [Line Items] | ||||
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount | 62 | |||
Domestic Tax Authority [Member] | ||||
Income Tax Contingency [Line Items] | ||||
Operating Loss Carryforwards | 532,000,000 | |||
Operating Loss Carryforwards, Subject to Limitations, Section 382 | 211,000,000 | |||
Operating Loss Carryforwards, Indefinite Life | 461,000,000 | |||
State and Local Jurisdiction [Member] | ||||
Income Tax Contingency [Line Items] | ||||
Operating Loss Carryforwards | $ 431,000,000 | |||
Operating Loss Carryforwards, Carry Forward Period | 20 years | |||
Deferred Tax Assets, Valuation Allowance | $ 37,000,000 | |||
Foreign Tax Authority [Member] | ||||
Income Tax Contingency [Line Items] | ||||
Operating Loss Carryforwards | $ 240,000,000 | |||
Operating Loss Carryforwards, Carry Forward Period | 3 years |
Income Taxes Schedule of Income
Income Taxes Schedule of Income before Tax Domestic and Foreign (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Income Tax Disclosure [Abstract] | |||
U.S. operations | $ 250 | $ 457 | $ 121 |
Non-U.S. operations | 355 | 258 | 139 |
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | $ 605 | $ 715 | $ 260 |
Income Taxes-Components of Inco
Income Taxes-Components of Income Tax Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Current Income Tax Expense (Benefit), Continuing Operations [Abstract] | |||
Federal | $ (8) | $ 8 | $ 1 |
State and local | 15 | 20 | 1 |
Non-U.S. | 66 | 38 | 33 |
Total current | 73 | 66 | 35 |
Deferred: | |||
Federal | 11 | 62 | 11 |
State and local | (5) | 7 | 6 |
Non-U.S. | 7 | (5) | (13) |
Total deferred | 13 | 64 | 4 |
Total provision | $ 86 | $ 130 | $ 39 |
Income Taxes-Income Tax Reconci
Income Taxes-Income Tax Reconciliation (Details) - USD ($) | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Income Tax Disclosure [Abstract] | |||
Provision at U.S. federal statutory tax rate | $ 127,000,000 | $ 150,000,000 | $ 55,000,000 |
State and local income taxes | 11,000,000 | 26,000,000 | 6,000,000 |
Foreign tax rate differential | (28,000,000) | (14,000,000) | (6,000,000) |
Effective Income Tax Rate Reconciliation, Global intangible low tax income | 6,000,000 | 3,000,000 | 3,000,000 |
Permanent items | 2,000,000 | (5,000,000) | 2,000,000 |
Unrecognized tax positions | 1,000,000 | 3,000,000 | (1,000,000) |
Tax valuation allowance | 94,000,000 | (7,000,000) | (21,000,000) |
Effective Income Tax Rate Reconciliation, Tax Credit, Foreign, Amount | 43,000,000 | 24,000,000 | 3,000,000 |
Withholding Tax and other foreign taxes | 1,000,000 | 1,000,000 | 1,000,000 |
Change in tax rate | 1,000,000 | 2,000,000 | 4,000,000 |
Effective Income Tax Rate Reconciliation, Tax Credit, Research, Amount | (2,000,000) | (5,000,000) | (2,000,000) |
Effective Tax Reconciliation, Benefit from Swiss Tax Reform | 83,000,000 | 0 | 0 |
Other | (1,000,000) | 0 | 1,000,000 |
Total provision | 86,000,000 | $ 130,000,000 | $ 39,000,000 |
Effective Tax Reconciliation, Change in Deferred Tax Valuation Allowance from Swiss Tax Reform | 62 | ||
Effective Tax Reconciliation, Net Benefit from Swiss Tax Reform | $ 21 |
Income Taxes-Deferred Tax Asset
Income Taxes-Deferred Tax Assets (Details) - USD ($) | Jun. 30, 2022 | Jun. 30, 2021 |
Deferred income tax assets: | ||
Accrued liabilities | $ 33,000,000 | $ 43,000,000 |
Equity compensation | 14,000,000 | 15,000,000 |
Loss and tax credit carryforwards | 225,000,000 | 187,000,000 |
Foreign currency | 19,000,000 | 12,000,000 |
Pension | 17,000,000 | 24,000,000 |
Property-related | 14,000,000 | 14,000,000 |
Intangibles | 1,000,000 | 3,000,000 |
Deferred Income Tax, Operating Lease, Liabilities | (39,000,000) | (35,000,000) |
Euro Denominated Debt | 0 | 23,000,000 |
Other | 2,000,000 | 0 |
Total deferred income tax assets | 364,000,000 | 356,000,000 |
Valuation allowance | (149,000,000) | (65,000,000) |
Deferred Tax Assets, Net of Valuation Allowance | 215,000,000 | 291,000,000 |
Deferred income tax liabilities: | ||
Foreign currency | (6,000,000) | 0 |
Property-related | (227,000,000) | (171,000,000) |
Goodwill and other intangibles | (113,000,000) | (194,000,000) |
Deferred Income Tax, Right-of-Use Asset | (21,000,000) | (18,000,000) |
Other | (1,000,000) | (6,000,000) |
Total deferred income tax liabilities | (368,000,000) | (389,000,000) |
Deferred Tax Liabilities, Net | $ 153,000,000 | $ 98,000,000 |
Income Taxes-Balance Sheet (Det
Income Taxes-Balance Sheet (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Jun. 30, 2021 |
Income Tax Disclosure [Abstract] | ||
Non-current deferred tax asset | $ 49 | $ 66 |
Non-current deferred tax liability | (202) | (164) |
Deferred Tax Liabilities, Net | (153) | (98) |
Marketable Securities | $ 89 | $ 71 |
Income Taxes-Unrecognized Tax B
Income Taxes-Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Reconciliation of Unrecognized Tax Benefits [Roll Forward] | |||
Beginning Balance | $ 5 | $ 4 | $ 4 |
Additions based on tax positions related to the current year | 1 | ||
Additions for tax positions of prior years | 1 | 3 | 1 |
Settlements | (1) | ||
Unrecognized Tax Benefits, Reduction Resulting from Lapse of Applicable Statute of Limitations | (1) | (2) | (1) |
Ending Balance | $ 5 | $ 5 | $ 4 |
Employee Retirement Benefit P_3
Employee Retirement Benefit Plans-Additional Information (Details) $ in Millions | 12 Months Ended |
Jun. 30, 2022 USD ($) | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Multiemployer Plans, Estimated Annual Cash Contribution | $ 2 |
Eberbach Pension Promissory Note or Loan [Member] | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Stated interest rate (percent) | 5% |
Retirement Benefits [Member] | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Multiemployer Plan, Pension, Significant, Future Employer Contribution, Amount | $ 38 |
Employee Retirement Benefit P_4
Employee Retirement Benefit Plans-Accumulated Benefit Obligation (Details) - USD ($) $ in Millions | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Employer contributions between measurement date and reporting date | ||
Fair value of plan assets at beginning of year | $ 318 | |
Fair value of plan assets at end of year | 240 | $ 318 |
Retirement Benefits [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Amortization of Gain (Loss) | (2) | (3) |
Accumulated Benefit Obligation | 262 | 364 |
Change in Benefit Obligation | ||
Benefit obligation at beginning of year | 372 | 358 |
Company service cost | 4 | 4 |
Interest cost | 5 | 4 |
Settlements | (1) | 0 |
Defined Benefit Plan, Benefit Obligation, Benefits Paid | 9 | 13 |
Actuarial (gain)/loss | (71) | (9) |
Exchange rate gain/(loss) | (32) | 28 |
Benefit obligation at end of year | 268 | 372 |
Employer contributions between measurement date and reporting date | ||
Fair value of plan assets at beginning of year | 318 | 295 |
Actual return on plan assets | (50) | (1) |
Company contributions | 10 | 11 |
Settlements | (1) | 0 |
Defined Benefit Plan, Plan Assets, Benefits Paid | (9) | (13) |
Exchange rate gain/(loss) | (28) | 26 |
Fair value of plan assets at end of year | 240 | 318 |
Funded status at end of year | (28) | (54) |
Net Pension assets (liabilities) | (28) | (54) |
Other Post-Retirement Benefits [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Amortization of Gain (Loss) | 0 | 0 |
Accumulated Benefit Obligation | 2 | 2 |
Change in Benefit Obligation | ||
Benefit obligation at beginning of year | 2 | 3 |
Company service cost | 0 | 0 |
Interest cost | 0 | 0 |
Settlements | 0 | 0 |
Defined Benefit Plan, Benefit Obligation, Benefits Paid | 0 | 1 |
Actuarial (gain)/loss | 0 | 0 |
Exchange rate gain/(loss) | 0 | 0 |
Benefit obligation at end of year | 2 | 2 |
Employer contributions between measurement date and reporting date | ||
Fair value of plan assets at beginning of year | 0 | |
Actual return on plan assets | 0 | 0 |
Company contributions | 0 | 0 |
Settlements | 0 | 0 |
Defined Benefit Plan, Plan Assets, Benefits Paid | 0 | 0 |
Exchange rate gain/(loss) | 0 | 0 |
Fair value of plan assets at end of year | 0 | 0 |
Funded status at end of year | (2) | (2) |
Net Pension assets (liabilities) | $ (2) | $ (2) |
Employee Retirement Benefit P_5
Employee Retirement Benefit Plans-Balance Sheet (Details) - USD ($) $ in Millions | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Amounts Recognized in Statement of Financial Position | ||
Noncurrent assets | $ 43 | |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | ||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Interest Cost, Statement of Income or Comprehensive Income [Extensible Enumeration] | Pension liability | Pension liability |
Defined Benefit Plan, Net Periodic Benefit (Cost) Credit, Expected Return (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Pension liability | Pension liability |
Defined Benefit Plan, Net Periodic Benefit (Cost) Credit, Amortization of Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Pension liability | Pension liability |
Retirement Benefits [Member] | ||
Amounts Recognized in Statement of Financial Position | ||
Noncurrent assets | $ 37 | $ 43 |
Current liabilities | (1) | (1) |
Noncurrent liabilities | (64) | (96) |
Funded status at end of year | (28) | (54) |
Amounts Recognized in Accumulated Other Comprehensive Income | ||
Prior service cost | (1) | (1) |
Net (gain)/loss | 49 | 62 |
Total accumulated other comprehensive income at the end of the year | 48 | 61 |
Additional Information for Plan with ABO in Excess of Plan Assets | ||
Projected benefit obligation | 132 | 130 |
Accumulated benefit obligation | 128 | 124 |
Fair value of plan assets | 67 | 32 |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | ||
Service cost | 4 | 4 |
Interest cost | 5 | 4 |
Defined Benefit Plan, Expected Return (Loss) on Plan Assets | 10 | 11 |
Defined Benefit Plan, Amortization of Gain (Loss) | (2) | (3) |
Net periodic benefit cost | 1 | 0 |
Other Post-Retirement Benefits [Member] | ||
Amounts Recognized in Statement of Financial Position | ||
Noncurrent assets | 0 | 0 |
Current liabilities | 0 | 0 |
Noncurrent liabilities | (2) | (2) |
Funded status at end of year | (2) | (2) |
Amounts Recognized in Accumulated Other Comprehensive Income | ||
Prior service cost | 0 | 0 |
Net (gain)/loss | (1) | (1) |
Total accumulated other comprehensive income at the end of the year | (1) | (1) |
Additional Information for Plan with ABO in Excess of Plan Assets | ||
Projected benefit obligation | 2 | 2 |
Accumulated benefit obligation | 2 | 2 |
Fair value of plan assets | 0 | 0 |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | ||
Service cost | 0 | 0 |
Interest cost | 0 | 0 |
Defined Benefit Plan, Expected Return (Loss) on Plan Assets | 0 | 0 |
Defined Benefit Plan, Amortization of Gain (Loss) | 0 | 0 |
Net periodic benefit cost | $ 0 | $ 0 |
Employee Retirement Benefit P_6
Employee Retirement Benefit Plans-AOCI (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Defined Benefit Plan, Amounts Recognized in Other Comprehensive Income (Loss) [Abstract] | |||
Net (gain)/loss arising during the year | $ (13) | $ 0 | $ (4) |
Retirement Benefits [Member] | |||
Defined Benefit Plan, Amounts Recognized in Other Comprehensive Income (Loss) [Abstract] | |||
Net (gain)/loss arising during the year | (14) | 0 | |
Exchange rate gain/(loss) recognized during the year | 1 | 0 | |
Total minimum pension liability, pretax | (13) | 0 | |
Other Comprehensive (Income) Loss, Defined Benefit Plan, Prior Service Cost (Credit), after Tax | (12) | 0 | |
Estimated Amounts to be Amortized from Accumulated Other Comprehensive Income into Net Periodic Benefit Cost | |||
Net (gain)/loss | $ 1 | $ 3 | |
Financial Assumptions Used to Determine Benefit Obligations at the Balance Sheet Date | |||
Discount rate (percent) | 3.60% | 1.60% | |
Rate of compensation increases (percent) | 2.70% | 2% | |
Financial Assumptions Used to Determine Net Periodic Benefit Cost for Financial Year | |||
Discount rate (percent) | 1.60% | 1.40% | |
Rate of compensation increases (percent) | 2% | 2% | |
Expected long-term rate of return (percent) | 3.40% | 3.60% | |
Expected Future Contributions | |||
Fiscal Year 2020 Expected Future Contributions | $ 7 | $ 8 | |
Other Post-Retirement Benefits [Member] | |||
Defined Benefit Plan, Amounts Recognized in Other Comprehensive Income (Loss) [Abstract] | |||
Net (gain)/loss arising during the year | 0 | 0 | |
Exchange rate gain/(loss) recognized during the year | 0 | 0 | |
Total minimum pension liability, pretax | 0 | 0 | |
Other Comprehensive (Income) Loss, Defined Benefit Plan, Prior Service Cost (Credit), after Tax | 0 | 0 | |
Estimated Amounts to be Amortized from Accumulated Other Comprehensive Income into Net Periodic Benefit Cost | |||
Net (gain)/loss | $ 0 | $ 0 | |
Financial Assumptions Used to Determine Benefit Obligations at the Balance Sheet Date | |||
Discount rate (percent) | 4% | 2% | |
Financial Assumptions Used to Determine Net Periodic Benefit Cost for Financial Year | |||
Discount rate (percent) | 2% | 1.80% | |
Expected Future Contributions | |||
Fiscal Year 2020 Expected Future Contributions | $ 0 | $ 0 |
Employee Retirement Benefit P_7
Employee Retirement Benefit Plans-Fiscal Year Maturity (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Jun. 30, 2021 |
Retirement Benefits [Member] | ||
Expected Future Benefit Payments | ||
Defined Benefit Plan, Expected Future Benefit Payment, Next Twelve Months | $ 14 | $ 13 |
Defined Benefit Plan, Expected Future Benefit Payment, Year Two | 13 | 14 |
Defined Benefit Plan, Expected Future Benefit Payment, Year Three | 14 | 15 |
Defined Benefit Plan, Expected Future Benefit Payment, Year Four | 16 | 15 |
Defined Benefit Plan, Expected Future Benefit Payment, Year Five | 14 | 15 |
Defined Benefit Plan, Expected Future Benefit Payment, Five Fiscal Years Thereafter | $ 80 | $ 84 |
Actual Asset Allocation (percent) | 100% | 100% |
Actual Asset Allocation | $ 240 | $ 318 |
Target Asset Allocation (percent) | 100% | 100% |
Retirement Benefits [Member] | Equity Securities [Member] | ||
Expected Future Benefit Payments | ||
Actual Asset Allocation (percent) | 4.10% | 4.40% |
Actual Asset Allocation | $ 10 | $ 14 |
Target Asset Allocation (percent) | 4.10% | 4.50% |
Retirement Benefits [Member] | US Government Agencies Debt Securities [Member] | ||
Expected Future Benefit Payments | ||
Actual Asset Allocation (percent) | 35.60% | 30.60% |
Actual Asset Allocation | $ 85 | $ 97 |
Target Asset Allocation (percent) | 35.60% | 30.50% |
Retirement Benefits [Member] | Corporate Debt Securities [Member] | ||
Expected Future Benefit Payments | ||
Actual Asset Allocation (percent) | 18.30% | 21% |
Actual Asset Allocation | $ 44 | $ 67 |
Target Asset Allocation (percent) | 18.30% | 21.10% |
Retirement Benefits [Member] | Real Estate [Member] | ||
Expected Future Benefit Payments | ||
Actual Asset Allocation (percent) | 4.90% | 3.50% |
Actual Asset Allocation | $ 12 | $ 11 |
Target Asset Allocation (percent) | 4.90% | 3.50% |
Retirement Benefits [Member] | Insurance Contracts [Member] | ||
Expected Future Benefit Payments | ||
Actual Asset Allocation (percent) | 12% | 9.60% |
Actual Asset Allocation | $ 29 | $ 31 |
Target Asset Allocation (percent) | 12% | 9.60% |
Retirement Benefits [Member] | Other Assets [Member] | ||
Expected Future Benefit Payments | ||
Actual Asset Allocation (percent) | 25.10% | 30.90% |
Actual Asset Allocation | $ 60 | $ 98 |
Target Asset Allocation (percent) | 25.10% | 30.80% |
Other Post-Retirement Benefits [Member] | ||
Expected Future Benefit Payments | ||
Defined Benefit Plan, Expected Future Benefit Payment, Next Twelve Months | $ 0 | $ 0 |
Defined Benefit Plan, Expected Future Benefit Payment, Year Two | 0 | 0 |
Defined Benefit Plan, Expected Future Benefit Payment, Year Three | 0 | 0 |
Defined Benefit Plan, Expected Future Benefit Payment, Year Four | 0 | 0 |
Defined Benefit Plan, Expected Future Benefit Payment, Year Five | 0 | 0 |
Defined Benefit Plan, Expected Future Benefit Payment, Five Fiscal Years Thereafter | $ 1 | $ 1 |
Actual Asset Allocation (percent) | 0% | 0% |
Actual Asset Allocation | $ 0 | $ 0 |
Target Asset Allocation (percent) | 0% | 0% |
Other Post-Retirement Benefits [Member] | Equity Securities [Member] | ||
Expected Future Benefit Payments | ||
Actual Asset Allocation (percent) | 0% | 0% |
Actual Asset Allocation | $ 0 | $ 0 |
Target Asset Allocation (percent) | 0% | 0% |
Other Post-Retirement Benefits [Member] | US Government Agencies Debt Securities [Member] | ||
Expected Future Benefit Payments | ||
Actual Asset Allocation (percent) | 0% | 0% |
Actual Asset Allocation | $ 0 | $ 0 |
Target Asset Allocation (percent) | 0% | 0% |
Other Post-Retirement Benefits [Member] | Corporate Debt Securities [Member] | ||
Expected Future Benefit Payments | ||
Actual Asset Allocation (percent) | 0% | 0% |
Actual Asset Allocation | $ 0 | $ 0 |
Target Asset Allocation (percent) | 0% | 0% |
Other Post-Retirement Benefits [Member] | Real Estate [Member] | ||
Expected Future Benefit Payments | ||
Actual Asset Allocation (percent) | 0% | 0% |
Actual Asset Allocation | $ 0 | $ 0 |
Target Asset Allocation (percent) | 0% | 0% |
Other Post-Retirement Benefits [Member] | Insurance Contracts [Member] | ||
Expected Future Benefit Payments | ||
Actual Asset Allocation (percent) | 0% | 0% |
Actual Asset Allocation | $ 0 | $ 0 |
Target Asset Allocation (percent) | 0% | 0% |
Other Post-Retirement Benefits [Member] | Other Assets [Member] | ||
Expected Future Benefit Payments | ||
Actual Asset Allocation (percent) | 0% | 0% |
Actual Asset Allocation | $ 0 | $ 0 |
Target Asset Allocation (percent) | 0% | 0% |
Employee Retirement Benefit P_8
Employee Retirement Benefit Plans-Fair Value (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Jun. 30, 2021 |
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $ 240 | $ 318 |
Level 1 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Level 2 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 213 | 295 |
Level 3 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 27 | 23 |
Fair Value Measured at Net Asset Value | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Equity Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 10 | 14 |
Equity Securities [Member] | Level 1 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Equity Securities [Member] | Level 2 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 10 | 14 |
Equity Securities [Member] | Level 3 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Equity Securities [Member] | Fair Value Measured at Net Asset Value | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Debt Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 129 | 164 |
Debt Securities [Member] | Level 1 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Debt Securities [Member] | Level 2 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 129 | 164 |
Debt Securities [Member] | Level 3 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Debt Securities [Member] | Fair Value Measured at Net Asset Value | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Real Estate [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 12 | 11 |
Real Estate [Member] | Level 1 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Real Estate [Member] | Level 2 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 10 | 11 |
Real Estate [Member] | Level 3 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 2 | 0 |
Real Estate [Member] | Fair Value Measured at Net Asset Value | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Other Assets [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 89 | 129 |
Other Assets [Member] | Level 1 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Other Assets [Member] | Level 2 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 64 | 106 |
Other Assets [Member] | Level 3 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 25 | 23 |
Other Assets [Member] | Fair Value Measured at Net Asset Value | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Hedge Funds [Member] | Level 2 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $ 35 | $ 62 |
Employee Retirement Benefit P_9
Employee Retirement Benefit Plans-Level 3 (Details) - Level 3 [Member] $ in Millions | 12 Months Ended |
Jun. 30, 2022 USD ($) | |
Employer contributions between measurement date and reporting date | |
Beginning balance | $ 23 |
Relating to assets still held at the reporting date | (2) |
Purchases, sales, settlements, contributions and benefits paid | (5) |
Transfers in and/or out of Level 3 | 11 |
Ending balance | 27 |
Insurance Contracts [Member] | |
Employer contributions between measurement date and reporting date | |
Beginning balance | 3 |
Relating to assets still held at the reporting date | 0 |
Purchases, sales, settlements, contributions and benefits paid | (3) |
Transfers in and/or out of Level 3 | 9 |
Ending balance | 9 |
Other Unobservable Assets [Member] | |
Employer contributions between measurement date and reporting date | |
Beginning balance | 20 |
Relating to assets still held at the reporting date | (2) |
Purchases, sales, settlements, contributions and benefits paid | (2) |
Transfers in and/or out of Level 3 | 2 |
Ending balance | $ 18 |
Employee Retirement Benefit _10
Employee Retirement Benefit Plans-Assumed Healthcare Trend Rates (Details) - Other Post-Retirement Benefits [Member] - USD ($) $ in Millions | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Effect of 1% Change in Healthcare Cost Trend Rate | ||
Fiscal Year 2020 Expected Future Contributions | $ 0 | $ 0 |
Discount rate (percent) | 4% | 2% |
Discount rate (percent) | 2% | 1.80% |
Post 65 [Member] | ||
Assumed Healthcare Cost Trend Rates at the Balance Sheet Date | ||
Healthcare cost trend rate-initial (percent) | 4.60% | 7.30% |
Healthcare cost trend rate-ulitimate (percent) | 4.10% | 4.40% |
Year in which ultimate rates are reached | 2040 | 2035 |
Equity and Accumulated Other _2
Equity and Accumulated Other Comprehensive Income (Loss) Equity (Details) $ / shares in Units, number in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||
Nov. 18, 2021 USD ($) shares | Nov. 23, 2020 USD ($) shares | Jun. 15, 2020 USD ($) $ / shares shares | Feb. 06, 2020 USD ($) $ / shares shares | Mar. 31, 2022 USD ($) | Mar. 31, 2022 USD ($) | Jun. 30, 2022 USD ($) $ / shares shares | Jun. 30, 2021 USD ($) $ / shares shares | Jun. 30, 2020 USD ($) $ / shares shares | May 17, 2019 USD ($) | |
Equity [Abstract] | ||||||||||
Common Stock, Shares Authorized | shares | 1,000,000,000 | 1,000,000,000 | ||||||||
Common stock, par value (usd per share) | $ / shares | $ 0.01 | $ 0.01 | ||||||||
Preferred Stock, Shares Authorized | shares | 100,000,000 | 100,000,000 | ||||||||
Preferred Stock, Shares Issued & Outstanding | shares | 384,777 | 650,000 | ||||||||
Preferred Stock, Par or Stated Value Per Share | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | |||||||
Stock Issued During Period, Shares, New Issues | shares | 8,000,000 | 8,000,000 | ||||||||
Shares Issued, Price Per Share | $ / shares | $ 70.72 | $ 58.58 | ||||||||
Stock Issued During Period, Value, New Issues | $ | $ 548,000,000 | $ 494,000,000 | $ 82,000,000 | $ 1,042,000,000 | ||||||
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 | |||||||||
Stock Issued During Period, Value, Over-allotment Option | $ | $ 82,000,000 | |||||||||
Auction Market Preferred Securities, Stock Series [Line Items] | ||||||||||
Preferred Stock, Shares Authorized | shares | 100,000,000 | 100,000,000 | ||||||||
Preferred Stock, Par or Stated Value Per Share | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | |||||||
Preferred Stock, Shares Issued | shares | 384,777 | 650,000 | 650,000 | |||||||
Preferred Stock, Issuance Value | $ | $ 650,000,000 | |||||||||
Preferred Stock, Value, Issued | $ | 1,000 | |||||||||
Preferred Stock, Issuance Value, Net | $ | $ 646,000,000 | |||||||||
Embedded Derivative, Estimate of Embedded Derivative Liability | $ | $ 40,000,000 | |||||||||
Conversion of Stock, Shares Converted | shares | 384,777 | 265,223 | ||||||||
Dividends, Preferred Stock, Stock | $ | $ 2 | $ 2,000,000 | ||||||||
Convertible Preferred Stock, Shares Issued upon Conversion | shares | 20.32 | 20.33 | ||||||||
Stock Issued During Period, Shares, Conversion of Convertible Securities | shares | 7,817,554 | 5,392,280 | ||||||||
Preferred Stock, Shares Issued & Outstanding | shares | 384,777 | 650,000 | ||||||||
Stock Issued During Period, Value, Conversion of Convertible Securities | $ | $ 362,000,000 | $ 253,000,000 | ||||||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Purchases, Sales, Issues, Settlements | $ | $ 4,000,000 | $ 1 | 1,000,000 | |||||||
Additional Paid-in Capital [Member] | ||||||||||
Equity [Abstract] | ||||||||||
Stock Issued During Period, Value, New Issues | $ | 82,000,000 | $ 1,042,000,000 | ||||||||
Auction Market Preferred Securities, Stock Series [Line Items] | ||||||||||
Stock Issued During Period, Value, Conversion of Convertible Securities | $ | $ 253,000,000 | $ 362 | $ 362,000,000 | $ 253,000,000 | ||||||
Designated shares [Member] | ||||||||||
Equity [Abstract] | ||||||||||
Preferred Stock, Shares Authorized | shares | 1,000,000 | |||||||||
Auction Market Preferred Securities, Stock Series [Line Items] | ||||||||||
Preferred Stock, Shares Authorized | shares | 1,000,000 |
Equity and Accumulated Other _3
Equity and Accumulated Other Comprehensive Income (Loss) Accumulated Other Comprehensive Earnings/(Loss) (Details) - USD ($) | 12 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2019 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | $ (394,000,000) | $ (317,000,000) | $ (386,000,000) | $ (354,000,000) |
Other comprehensive income /(loss), net of tax | (77,000,000) | 69,000,000 | (32,000,000) | |
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, after Tax | 0 | (2,000,000) | ||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | (110,000,000) | 67,000,000 | (31,000,000) | |
Other Comprehensive Income (Loss), Securities, Available-for-sale, Adjustment, after Tax | (1,000,000) | 0 | ||
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | (78,000,000) | 69,000,000 | (34,000,000) | |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 1,000,000 | (2,000,000) | ||
Accumulated Translation Adjustment [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (378,000,000) | (268,000,000) | (335,000,000) | (304,000,000) |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | 67,000,000 | (31,000,000) | ||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 0 | |||
Accumulated Defined Benefit Plans Adjustment [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (38,000,000) | (47,000,000) | (47,000,000) | (49,000,000) |
Other Comprehensive Income (Loss), before Reclassifications, before Tax | 8,000,000 | |||
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, after Tax | (9,000,000) | |||
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | 0 | 0 | ||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | (1,000,000) | (2,000,000) | ||
AOCI, Derivative Qualifying as Hedge, Excluded Component, Parent | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | 27,000,000 | 0 | (3,000,000) | 0 |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | 3,000,000 | (3,000,000) | ||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 0 | |||
ACOI, Accumulated Gain (Loss), Marketable Securities | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (4,000,000) | (1,000,000) | 0 | 0 |
Other Comprehensive Income (Loss), Securities, Available-for-sale, Adjustment, after Tax | (3,000,000) | (1,000,000) | 0 | |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | (1,000,000) | 0 | ||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 0 | |||
AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-sale, Parent | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (1,000,000) | (1,000,000) | (1,000,000) | $ (1,000,000) |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | $ 0 | $ 0 | 0 | |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | $ 0 |
Equity and Accumulated Other _4
Equity and Accumulated Other Comprehensive Income (Loss)-Minimum Pension Liability (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Equity [Abstract] | |||
Net investment hedge | $ 121 | $ (56) | $ 3 |
Long term inter-company loans | (37) | 39 | (9) |
Translation adjustments | (169) | 72 | (25) |
Total foreign currency translation adjustments, pretax | (85) | 55 | (31) |
Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Tax | 25 | (12) | 0 |
Total foreign currency translation adjustments, net of tax | 67 | (31) | |
Net Derivative and Hedge (gain)/loss arising during the year | 36 | 4 | (4) |
Derivative and Hedge, (Income) Loss | 9 | 1 | (1) |
Other Comprehensive Income, Debt Securities, Derivative and Hedge, Gain (Loss), after Adjustment and Tax | (27) | 3 | (3) |
Net gain/(loss) arising during the year | 13 | 0 | 4 |
Pension liability tax | 4 | 0 | 2 |
Net change in minimum pension liability, net of tax | 0 | 2 | |
Other Comprehensive Income (Loss), Securities, Available-for-Sale, Unrealized Holding Gain (Loss) Arising During Period, before Tax | (3) | (1) | 0 |
Other Comprehensive Income (Loss), Securities, Available-for-sale, Tax | $ 0 | 0 | 0 |
Other Comprehensive Income (Loss), Securities, Available-for-sale, Adjustment, after Tax | $ (1) | $ 0 |
Equity (Details)
Equity (Details) - USD ($) | 12 Months Ended | ||||||
Jun. 30, 2020 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 15, 2020 | Feb. 06, 2020 | Jun. 30, 2019 | May 17, 2019 | |
Redeemable Preferred Stock [Line Items] | |||||||
Preferred Stock, Shares Authorized | 100,000,000 | 100,000,000 | |||||
Preferred Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 | $ 0.01 | ||||
Preferred Stock, Shares Issued | 650,000 | 384,777 | 650,000 | ||||
Preferred Stock, Issuance Value | $ 650,000,000 | ||||||
Preferred Stock, Value, Issued | 1,000 | ||||||
Shares Issued, Price Per Share | $ 70.72 | $ 58.58 | |||||
Preferred Stock, Value, Outstanding | $ 0 | $ 0 | |||||
Preferred Stock, Issuance Value, Net | 646,000,000 | ||||||
Payments of Stock Issuance Costs | 4,000,000 | ||||||
Embedded Derivative, Estimate of Embedded Derivative Liability | $ 40,000,000 | ||||||
Redeemable Preferred Stock Outstandings | $ 607,000,000 | $ 0 | $ 359,000,000 | $ 607,000,000 | |||
Designated shares [Member] | |||||||
Redeemable Preferred Stock [Line Items] | |||||||
Preferred Stock, Shares Authorized | 1,000,000 |
Equity Based Compensation (Addi
Equity Based Compensation (Additional) (Details) - USD ($) | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Additional Shares Authorized | 15,600,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Number of Shares, Period Increase (Decrease) | 2.25 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Option, Nonvested, Weighted Average Exercise Price | $ 32.07 | $ 24.36 | $ 15.22 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value | $ 29,000,000 | $ 64,000,000 | |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 2 years 7 months 6 days | ||
Weighted Average Grant Date Fair Value of Restricted Stock Unit | $ 57,000,000 | 47,000,000 | |
Stock Option Granted Contractual Term | 10 years | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost | $ 54,000,000 | 51,000,000 | $ 48,000,000 |
Restricted Stock Units (RSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 1 year 9 months 18 days | ||
Weighted Average Grant Date Fair Value of Restricted Stock Unit | $ 109.63 | 94.19 | 57.17 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value | $ 33,000,000 | $ 39,000,000 | $ 35,000,000 |
Employee Stock Option [Member] | Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate | 37% | 27% | 23% |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | 0.70% | 0.30% | 1.70% |
Employee Stock Option [Member] | Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate | 24% | ||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | 3 years 8 months 12 days | 6 years 3 months | 6 years 3 months |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | 1.90% | ||
Share Based Compensation Arrangement by Share Based Payment Award, Fair Value Assumptions, Expected Dividend Payments, Per Share | $ 0 | $ 0 | $ 0 |
Performance Shares [Member] | Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate | 39% | 39% | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | 2 years 4 months 24 days | 2 years 4 months 24 days | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | 0.30% | 0.10% | |
Performance Shares [Member] | Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate | 41% | 42% | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | 2 years 10 months 24 days | 2 years 10 months 24 days | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | 1.50% | 0.20% | |
Share Based Compensation Arrangement by Share Based Payment Award, Fair Value Assumptions, Expected Dividend Payments, Per Share | $ 0 | $ 0 | |
Stock Compensation Plan - Omnibus [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested, Number of Shares | 183,000 | 231,000 | 329,000 |
Equity Based Compensation (Opti
Equity Based Compensation (Option Activity) (Details) - USD ($) | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Outstanding Options, Weighted Average Exercise Price | $ 63.74 | $ 49.77 | |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | 113 | ||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Exercises in Period, Weighted Average Exercise Price | 42.11 | ||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Forfeitures in Period, Weighted Average Exercise Price | 39.43 | ||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Expirations in Period, Weighted Average Exercise Price | 36.97 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Weighted Average Exercise Price | 63.74 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Weighted Average Exercise Price | $ 43.80 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value | $ 29,000,000 | $ 64,000,000 | |
Payments Related to Tax Withholding for Share-based Compensation | 10,000,000 | 46,000,000 | $ 32,000,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested in Period, Fair Value | 6,000,000 | $ 7,000,000 | |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 2,000,000 | ||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 2 years 7 months 6 days | ||
Time [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 1,055,511 | 1,280,174 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 182,751 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | (386,456) | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures in Period | (17,559) | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Expirations in Period | (3,399) | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Number | 1,055,511 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Number | 437,034 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term | 6 years 10 months 28 days | 4 years 11 months 1 day | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Weighted Average Remaining Contractual Term | 5 years 9 months 3 days | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value | $ 47,013,454 | $ 74,696,700 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value | 29,329,353 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Aggregate Intrinsic Value | 47,013,454 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Aggregate Intrinsic Value | $ 27,748,162 | ||
Performance [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 1,055,511 |
Equity Based Compensation (RSU
Equity Based Compensation (RSU Activity) (Details) - USD ($) | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 535,000 | 502,000 | |
Payments Related to Tax Withholding for Share-based Compensation | $ 10,000,000 | $ 46,000,000 | $ 32,000,000 |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 2 years 7 months 6 days | ||
Weighted Average Grant Date Fair Value of Restricted Stock Unit | $ 57,000,000 | $ 47,000,000 | |
Time Based Restricted Stock Units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 722,438 | 764,356 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 324,091 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | 292,945 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Period Increase (Decrease) | 73,064 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $ 91.42 | $ 65.54 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | 117.52 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | 52.11 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | $ 96.04 | ||
Performance Shares [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 305,746 | 392,095 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 103,946 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | 168,325 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Period Increase (Decrease) | 21,970 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $ 83.75 | $ 58.16 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | 113.57 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | 43.84 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | $ 88.57 | ||
Restricted Stock Units (RSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 281,315 | 327,028 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 107,197 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | 132,565 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Period Increase (Decrease) | 20,345 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $ 91.04 | $ 68.92 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | 110.34 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | 47.70 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | $ 95.70 | ||
Restricted Stock Units (RSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options | $ 57,000,000 | ||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 1 year 9 months 18 days | ||
Weighted Average Grant Date Fair Value of Restricted Stock Unit | $ 109.63 | $ 94.19 | 57.17 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value | $ 33,000,000 | $ 39,000,000 | $ 35,000,000 |
Other Income _ Expense (Details
Other Income / Expense (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | ||
Other Income and Expenses [Abstract] | ||||
Other Nonoperating Expense | [1] | $ 4 | $ 18 | $ 16 |
Foreign Currency Transaction Gain (Loss), Unrealized | [2] | (33) | (5) | 3 |
Other Nonoperating Income (Expense) | [3] | 9 | 20 | 5 |
Other (Income)/expense, net | (28) | (3) | (8) | |
Derivative, Gain (Loss) on Derivative, Net | 2 | 17 | $ 3 | |
Write-off of Deferred Debt Issuance Costs | 4 | 6 | ||
Early Repayment of Senior Debt | 11 | $ 10 | ||
Gain (Loss) on Extinguishment of Debt | $ 3 | |||
[1]Debt refinancing costs for the fiscal year ended June 30, 2022 consists of $4 million of financing charges related to the Company's Incremental Term B-3 Loans. Debt financing costs for the fiscal year ended June 30, 2021 includes (a) a write-off of $4 million of previously capitalized financing charges related to the Company’s repayment of U.S. dollar-denominated term loans and the 2026 Notes in February 2021, (b) $3 million of financing charges related to issuance of the Company’s initial tranche of Term B-3 Loans, and (c) an $11 million premium on early redemption of the 2026 Notes. Debt financing costs for the fiscal year ended June 30, 2020 includes (x) a write-off of $6 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 2024 Notes, and (y) a $10 million premium on early redemption of the 2024 Notes. |
Leases - Schedule of Operating
Leases - Schedule of Operating and Finance Leases Presented in the Balance Sheet (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Jun. 30, 2021 |
Assets and Liabilities, Lessee [Abstract] | ||
Finance Lease, Right-of-Use Asset, after Accumulated Amortization | $ 178 | |
Operating Lease, Right-of-Use Asset | 93 | $ 84 |
Finance Lease, Liability, Current | 17 | |
Operating Lease, Liability, Current | 14 | |
Finance Lease, Liability, Noncurrent | 217 | |
Operating Lease, Liability, Noncurrent | $ 85 | |
Operating Lease, Liability, Statement of Financial Position [Extensible List] | Other Liabilities | |
Finance Lease, Liability, Statement of Financial Position [Extensible List] | Other Liabilities | |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Property, Plant and Equipment, Net | |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Property, Plant and Equipment, Net | Other Assets, Noncurrent |
Leases - Cost (Details)
Leases - Cost (Details) $ in Millions | 12 Months Ended |
Jun. 30, 2022 USD ($) | |
Lease, Cost [Abstract] | |
Finance Lease, Right-of-Use Asset, Amortization | $ 17 |
Finance Lease, Interest Expense | 12 |
Finance Lease Expense | 29 |
Operating Lease, Expense | 28 |
Variable Lease, Cost | 8 |
Lease, Cost | 65 |
Short-Term Lease Costs | $ 8 |
Finance Lease, Weighted Average Remaining Lease Term | 17 years 8 months 12 days |
Operating Lease, Weighted Average Remaining Lease Term | 13 years 8 months 12 days |
Finance Lease, Weighted Average Discount Rate, Percent | 6.10% |
Operating Lease, Weighted Average Discount Rate, Percent | 4.30% |
Leases - Schedule of Supplement
Leases - Schedule of Supplemental Cash Flow Information (Details) $ in Millions | 12 Months Ended |
Jun. 30, 2022 USD ($) | |
Cash Paid For Amounts Included In Measurement Of Lease Liabilities [Abstract] | |
Finance Lease, Principal Payments | $ 15 |
Finance Lease, Interest Payment on Liability | 11 |
Operating Lease, Payments | 19 |
Right-of-Use Asset Obtained in Exchange for Finance Lease Liability | 59 |
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability | $ 31 |
Leases - Schedule of Maturities
Leases - Schedule of Maturities of Operating And Finance Lease Liabilities (Details) $ in Millions | Jun. 30, 2022 USD ($) |
Leases [Abstract] | |
Finance Lease, Liability, Payments, Due Year One | $ 29 |
Finance Lease, Liability, Payments, Due Year Two | 28 |
Finance Lease, Liability, Payments, Due Year Three | 25 |
Finance Lease, Liability, Payments, Due Year Four | 22 |
Finance Lease, Liability, Payments, Due Year Five | 22 |
Finance Lease, Liability, Payments, Due after Year Five | 238 |
Finance Lease, Liability, Payment, Due | 364 |
Finance Lease, Liability, Undiscounted Excess Amount | 130 |
Finance Lease, Liability | 234 |
Lessee, Operating Lease, Liability, Payments, Due Year One | 17 |
Lessee, Operating Lease, Liability, Payments, Due Year Two | 14 |
Lessee, Operating Lease, Liability, Payments, Due Year Three | 11 |
Lessee, Operating Lease, Liability, Payments, Due Year Four | 11 |
Lessee, Operating Lease, Liability, Payments, Due Year Five | 11 |
Lessee, Operating Lease, Liability, Payments, Due after Year Five | 74 |
Lessee, Operating Lease, Liability, Payments, Due | 138 |
Lessee, Operating Lease, Liability, Undiscounted Excess Amount | 39 |
Operating Lease, Liability | 99 |
Total Lease Liability Payments Due Year One | 46 |
Total Lease Liability Payments Due Year Two | 42 |
Total Lease Liability Payments Due Year Three | 36 |
Total Lease Liability Payments Due Year Four | 33 |
Total Lease Liability Payments Due Year Five | 33 |
Total Lease Liability Payments Due After Year Five | 312 |
Total Lease Liability Payments Due | 502 |
Total Lease Liability Undiscounted Excess Amount | 169 |
Total Lease Liability | $ 333 |
Segment Information - Net Reven
Segment Information - Net Revenue and Segment Ebitda (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Net revenue | $ 4,828 | $ 3,998 | $ 3,094 | |
Inter-segment revenue elimination | (17) | (19) | (10) | |
Impairment charges and gain/(loss) on sale of assets | (31) | (9) | (5) | |
Equity compensation | (54) | (51) | (48) | |
Restructuring and other special items | [1] | (55) | (31) | (42) |
Disposal Group, Not Discontinued Operation, Gain (Loss) on Disposal | [2] | 1 | 182 | (1) |
Other income (expense), net | [3] | (28) | (3) | (8) |
Non-allocated corporate costs, net | (119) | (87) | (42) | |
Total unallocated costs | (286) | 1 | (146) | |
Softgel and Oral Technologies [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Net revenue | 1,246 | 1,012 | 1,062 | |
Segment EBITDA | 292 | 237 | 257 | |
Biologics [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Net revenue | 2,549 | 1,928 | 1,021 | |
Segment EBITDA | 798 | 608 | 237 | |
Oral and Specialty Drug Delivery [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Net revenue | 650 | 686 | 676 | |
Segment EBITDA | 192 | 160 | 201 | |
Clinical Supply Services [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Net revenue | 400 | 391 | 345 | |
Segment EBITDA | 110 | 108 | 91 | |
Total Catalent sub-total of Segment Reporting [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Segment EBITDA | $ 1,392 | $ 1,113 | $ 786 | |
[1] Restructuring and other special items for the fiscal year ended June 30, 2021 include transaction and integration costs associated with the Anagni, Italy facility acquisition and the MaSTherCell, Skeletal, Delphi, and Acorda transactions, in addition to restructuring costs associated with the closure of the Company's Clinical Supply Services facility in Bolton, U.K. Restructuring and other special items during the fiscal year ended June 30, 2020 include transaction and integration costs associated with the Company’s cell and gene therapy acquisitions and the disposal of a facility in Australia. Other expense, net , for details of financing charges and foreign currency translation adjustments recorded within other expense, net. |
Segment Information - Reconcili
Segment Information - Reconciliation of Earnings/ (loss) from Continuing Operations to Ebitda (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Segment Reporting [Abstract] | |||
Earnings/(loss) from continuing operations | $ 519 | $ 585 | $ 221 |
Total unallocated costs | 286 | (1) | 146 |
Depreciation and amortization | 378 | 289 | 254 |
Interest expense, net | 123 | 110 | 126 |
Income tax expense | $ 86 | $ 130 | $ 39 |
Segment Information Total Asset
Segment Information Total Assets (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Jun. 30, 2021 |
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | $ 10,507 | $ 9,112 |
Softgel and Oral Technologies [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | 2,685 | 1,604 |
Biologics [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | 5,734 | 4,973 |
Oral and Specialty Drug Delivery [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | 1,006 | 1,269 |
Clinical Supply Services [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | 700 | 483 |
Corporate and Eliminations [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | $ 382 | $ 783 |
Segment Information Depreciatio
Segment Information Depreciation and Amortization (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Segment Reporting Information [Line Items] | |||
Depreciation and Amortization | $ 378 | $ 289 | $ 254 |
Segment Information Capital Exp
Segment Information Capital Expenditures (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Segment Reporting Information [Line Items] | |||
Capital expenditures | $ 660 | $ 686 | $ 466 |
Payments and Accruals to Acquire Property, Plant. and Equipment | 666 | ||
Softgel and Oral Technologies [Member] | |||
Segment Reporting Information [Line Items] | |||
Capital expenditures | 109 | 61 | 54 |
Biologics [Member] | |||
Segment Reporting Information [Line Items] | |||
Capital expenditures | 453 | 516 | 330 |
Oral and Specialty Drug Delivery [Member] | |||
Segment Reporting Information [Line Items] | |||
Capital expenditures | 57 | 64 | 55 |
Clinical Supply Services [Member] | |||
Segment Reporting Information [Line Items] | |||
Capital expenditures | 17 | 26 | 10 |
Corporate [Member] | |||
Segment Reporting Information [Line Items] | |||
Capital expenditures | $ 30 | $ 19 | $ 17 |
Segment Information - Assets an
Segment Information - Assets and Revenues (Detail) - USD ($) $ in Millions | Jun. 30, 2022 | Jun. 30, 2021 | |
Segment Reporting Information [Line Items] | |||
Property, Plant and Equipment, Net | [1] | $ 3,127 | $ 2,524 |
United States [Member] | |||
Segment Reporting Information [Line Items] | |||
Property, Plant and Equipment, Net | [1] | 2,267 | 1,867 |
Europe | |||
Segment Reporting Information [Line Items] | |||
Property, Plant and Equipment, Net | [1] | 747 | 541 |
International Other [Member] | |||
Segment Reporting Information [Line Items] | |||
Property, Plant and Equipment, Net | [1] | $ 113 | $ 116 |
[1]Long-lived assets include property, plant, and equipment, net of accumulated depreciation. |
Supplemental Balance Sheet In_3
Supplemental Balance Sheet Information - Work-in-Process and Finished Goods Inventories Include Raw Materials, Labor and Overhead (Detail) - USD ($) $ in Millions | Jun. 30, 2022 | Jun. 30, 2021 |
Balance Sheet Related Disclosures [Abstract] | ||
Raw materials and supplies | $ 651 | $ 469 |
Work-in-process | 109 | 151 |
Total inventory, gross | 760 | 620 |
Inventory cost adjustment | (58) | (57) |
Inventories | $ 702 | $ 563 |
Supplemental Balance Sheet In_4
Supplemental Balance Sheet Information - Prepaid and Other Assets (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Balance Sheet Related Disclosures [Abstract] | ||
Prepaid Expense, Current | $ 61 | $ 46 |
Contract with Customer, Asset | 398 | |
Spare Parts | 22 | 30 |
Prepaid Taxes | 26 | 22 |
Value Added Tax Receivable | 48 | 50 |
Other current assets | 70 | 47 |
Prepaid Expense and Other Assets, Current | $ 625 | $ 376 |
Supplemental Balance Sheet In_5
Supplemental Balance Sheet Information - Property and Equipment (Detail) - USD ($) $ in Millions | Jun. 30, 2022 | Jun. 30, 2021 | |
Balance Sheet Related Disclosures [Abstract] | |||
Land, buildings, and improvements | $ 1,687 | $ 1,571 | |
Machinery and equipment | 1,891 | 1,558 | |
Furniture and fixtures | 48 | 31 | |
Construction in progress | 848 | 543 | |
Property and equipment, at cost | 4,474 | 3,703 | |
Accumulated depreciation | (1,347) | (1,179) | |
Property, plant, and equipment, net | [1] | $ 3,127 | $ 2,524 |
[1]Long-lived assets include property, plant, and equipment, net of accumulated depreciation. |
Supplemental Balance Sheet In_6
Supplemental Balance Sheet Information - Other Assets Non Current (Detail) - USD ($) | Jun. 30, 2022 | Jun. 30, 2021 |
Balance Sheet Related Disclosures [Abstract] | ||
Operating Lease, Right-of-Use Asset | $ 93,000,000 | $ 84,000,000 |
Loans and Leases Receivable, Gross | 51,000,000 | 47,000,000 |
Pension Asset | 37,000,000 | |
Noncurrent assets | 43,000,000 | |
Cash Surrender Value of Life Insurance | 35,000,000 | 35,000,000 |
Alternative Investment | 33,000,000 | 38,000,000 |
Interest Rate Derivative Assets, at Fair Value | 36,000,000 | 2,000,000 |
Other Assets, Miscellaneous, Noncurrent | 21,000,000 | 19,000,000 |
Other Assets, Noncurrent | 349,000,000 | 268,000,000 |
Deferred Income Tax, Right-of-Use Asset | 93,000,000 | 84,000,000 |
Contract with Customer, Asset | $ 43,000,000 | $ 0 |
Supplemental Balance Sheet In_7
Supplemental Balance Sheet Information - Other Accrued Liabilities (Detail) - USD ($) $ in Millions | Jun. 30, 2022 | Jun. 30, 2021 |
Balance Sheet Related Disclosures [Abstract] | ||
Accrued employee-related expenses | $ 198 | $ 184 |
Restructuring accrual | 1 | 4 |
Interest Payable, Current | 32 | 27 |
Deferred revenue and fees | 185 | 305 |
Accrued income tax | 50 | 30 |
Other accrued liabilities and expenses | 140 | 170 |
Other accrued liabilities | 620 | 736 |
Accrued Operating Lease, Liabilities | $ 14 | $ 16 |
Subsequent Events (Details)
Subsequent Events (Details) | Aug. 09, 2022 USD ($) |
Subsequent Event [Line Items] | |
Business Combination, Price of Acquisition, Expected | $ 475 |
Uncategorized Items - ctlt-2022
Label | Element | Value |
Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents | us-gaap_CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents | $ 345,000,000 |