Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Jun. 30, 2022 | Aug. 19, 2022 | Dec. 31, 2021 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K/A | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | true | ||
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 | (732) 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 | 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 | ||
Amendment Description | In preparing the consolidated financial statements as of and for the three and nine months ended March 31, 2023, we identified an error related to the recognition and presentation of net revenue from our Bloomington, Indiana facility in our consolidated financial statements issued with respect to the fiscal year ended June 30, 2022 and certain revenue classification errors with respect to the fiscal years ended June 30, 2022, 2021 and 2020. We evaluated the materiality of the misstatements and concluded that they do not result in a material misstatement of our previously issued consolidated financial statements. However, we determined to revise our consolidated financial statements for the fiscal year ended June 30, 2022 to reflect the impact of the misstatements in the periods impacted. For a more detailed description of this revision, refer to the section entitled “Revision” in Part II, Item 8, Notes to Consolidated Financial Statements, Note 1: Revisions of Previously Issued Financial Statements. | ||
Document Financial Statement Error Correction [Flag] | true |
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 Balance Sheet
Consolidated Balance Sheet - USD ($) | Jun. 30, 2022 | Jun. 30, 2021 |
Statement of Financial Position [Abstract] | ||
Cash and Cash Equivalents, at Carrying Value | $ 449,000,000 | $ 896,000,000 |
Accounts Receivable, after Allowance for Credit Loss, Current | 1,051,000,000 | 1,012,000,000 |
Inventory, Net | 702,000,000 | 563,000,000 |
Prepaid Expense and Other Assets, Current | 626,000,000 | 376,000,000 |
Marketable Securities | 89,000,000 | 71,000,000 |
Assets, Current | 2,917,000,000 | 2,918,000,000 |
Property, Plant and Equipment, Net | 3,127,000,000 | 2,524,000,000 |
Goodwill | 3,006,000,000 | 2,519,000,000 |
Intangible Assets, Net (Excluding Goodwill) | 1,060,000,000 | 817,000,000 |
Deferred Tax Assets, Deferred Income | 49,000,000 | 66,000,000 |
Other Assets, Noncurrent | 349,000,000 | 268,000,000 |
Assets | 10,508,000,000 | 9,112,000,000 |
Debt, Current | 31,000,000 | 75,000,000 |
Accounts Payable, Current | 421,000,000 | 385,000,000 |
Other Accrued Liabilities, Current | 646,000,000 | 736,000,000 |
Liabilities, Current | 1,098,000,000 | 1,196,000,000 |
Long-Term Debt and Lease Obligation | 4,171,000,000 | 3,166,000,000 |
Liability, Defined Benefit Pension Plan, Noncurrent | 103,000,000 | 137,000,000 |
Deferred Tax Liabilities, Tax Deferred Income | 197,000,000 | 164,000,000 |
Other Liabilities, Noncurrent | 164,000,000 | 175,000,000 |
Liabilities | 5,733,000,000 | 4,838,000,000 |
Common Stock, Value, Outstanding | 2,000,000 | 2,000,000 |
Preferred Stock, Value, Outstanding | 0 | |
Additional Paid in Capital, Common Stock | 4,649,000,000 | 4,205,000,000 |
Retained Earnings (Accumulated Deficit) | 518,000,000 | 25,000,000 |
Accumulated Other Comprehensive Income (Loss), Net of Tax | (394,000,000) | (317,000,000) |
Equity, Attributable to Parent | 4,775,000,000 | 3,915,000,000 |
Liabilities and Equity | 10,508,000,000 | 9,112,000,000 |
Redeemable Preferred Stock Outstandings | $ 0 | $ 359,000,000 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) | Jun. 30, 2022 | Jun. 30, 2021 |
Statement of Financial Position [Abstract] | ||
Accounts Receivable, Allowance for Credit Loss, Current | $ 29,000,000 | $ 12,000,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Income Statement [Abstract] | |||
Revenues | $ 4,802,000,000 | $ 3,998,000,000 | $ 3,094,000,000 |
Cost of Goods and Services Sold | 3,188,000,000 | 2,646,000,000 | 2,111,000,000 |
Gross Profit | 1,614,000,000 | 1,352,000,000 | 983,000,000 |
Selling, General and Administrative Expense | 844,000,000 | 687,000,000 | 577,000,000 |
Disposal Group, Not Discontinued Operation, Gain (Loss) on Disposal | 1,000,000 | 182,000,000 | (1,000,000) |
Other Cost and Expense, Operating | 41,000,000 | 19,000,000 | 11,000,000 |
Operating Income (Loss) | 730,000,000 | 828,000,000 | 394,000,000 |
Interest Income (Expense), Net | (123,000,000) | (110,000,000) | (126,000,000) |
Nonoperating Income (Expense) | (28,000,000) | (3,000,000) | (8,000,000) |
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | 579,000,000 | 715,000,000 | 260,000,000 |
Income Tax Expense (Benefit) | 80,000,000 | 130,000,000 | 39,000,000 |
Net Income (Loss) Attributable to Parent | 499,000,000 | 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 | $ 483,000,000 | $ 529,000,000 | $ 173,000,000 |
Earnings Per Share, Basic | $ 2.74 | $ 3.15 | $ 1.16 |
Earnings Per Share, Diluted | $ 2.73 | $ 3.11 | $ 1.14 |
Statement of Comprehensive Inco
Statement of Comprehensive Income (Statement) - USD ($) | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | $ 499,000,000 | $ 585,000,000 | $ 221,000,000 |
Foreign Currency Translation Adjustment, Description | (110,000,000) | 67,000,000 | (31,000,000) |
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, after Tax | (4,000,000) | 0 | (2,000,000) |
OCI, Debt Securities, Available-for-Sale, Gain (Loss), after Adjustment and Tax | 1,000,000 | 0 | |
OCI, Debt Securities, Derivative and Hedge, Gain (Loss), after Adjustment and Tax | 27,000,000 | (3,000,000) | 3,000,000 |
Other Comprehensive Income (Loss), Net of Tax | (77,000,000) | 69,000,000 | (32,000,000) |
Comprehensive income/(loss) | 422,000,000 | 654,000,000 | 189,000,000 |
ACOI, Accumulated Gain (Loss), Marketable Securities | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||
OCI, Debt Securities, Available-for-Sale, Gain (Loss), after Adjustment and Tax | (3,000,000) | $ 1,000,000 | $ 0 |
Accumulated Defined Benefit Plans Adjustment Attributable to Parent | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, after Tax | $ (9,000,000) |
Consolidated Statement of Chang
Consolidated Statement of Changes in Shareholder's Equity - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit | Accumulated Other Comprehensive (Loss)/Income [Member] | Total |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Redeemable Preferred Stock Outstandings | $ 607,000,000 | ||||
Ending Balance - Common Stock Outstanding (shares) | 145,738,000 | ||||
Beginning Balance at Jun. 30, 2019 | $ 2,000,000 | $ 2,757,000,000 | $ (723,000,000) | $ (354,000,000) | 1,682,000,000 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock Issued During Period, Value, New Issues | $ 16,196,000 | 1,042,000,000 | 1,042,000,000 | ||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Exercises in Period | 854,000 | ||||
Equity compensation | 48,000,000 | 48,000,000 | |||
Payment, Tax Withholding, Share-Based Payment Arrangement | (32,000,000) | (32,000,000) | |||
Equity issued in lieu of cash consideration | 3,000,000 | 3,000,000 | |||
Dividends, Preferred Stock | (33,000,000) | (33,000,000) | |||
Net Income (Loss) Attributable to Parent | 221,000,000 | 221,000,000 | |||
Other Comprehensive Income (Loss), Net of Tax | (32,000,000) | (32,000,000) | |||
Ending Balance at Jun. 30, 2020 | $ 2,000,000 | 3,818,000,000 | (535,000,000) | (386,000,000) | 2,899,000,000 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Redeemable Preferred Stock Outstandings | 607,000,000 | ||||
Ending Balance - Common Stock Outstanding (shares) | 162,788,000 | ||||
Stock Issued During Period, Value, New Issues | 82,000,000 | 82,000,000 | |||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Exercises in Period | 1,206,000 | ||||
Stock Issued During Period, Value, Conversion of Convertible Securities | 253,000,000 | 253,000,000 | |||
Equity compensation | 51,000,000 | 51,000,000 | |||
Payment, Tax Withholding, Share-Based Payment Arrangement | (46,000,000) | (46,000,000) | |||
APIC, Share-Based Payment Arrangement, Option, Increase for Cost Recognition | 38,000,000 | 38,000,000 | |||
Equity issued in lieu of cash consideration | 9,000,000 | ||||
APIC, Share-Based Payment Arrangement, ESPP, Increase for Cost Recognition | 9,000,000 | ||||
Dividends, Preferred Stock | (25,000,000) | (25,000,000) | |||
Net Income (Loss) Attributable to Parent | 585,000,000 | 585,000,000 | |||
Other Comprehensive Income (Loss), Net of Tax | 69,000,000 | 69,000,000 | |||
Ending Balance at Jun. 30, 2021 | $ 2,000,000 | 4,205,000,000 | 25,000,000 | (317,000,000) | 3,915,000,000 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Temporary Equity, Carrying Amount, Period Increase (Decrease) | (248,000,000) | ||||
Stock Issued During Period, Shares, Conversion of Convertible Securities | 5,392,000 | ||||
Stock Issued During Period, Shares, New Issues | 1,163,000 | ||||
Redeemable Preferred Stock Outstandings | 359,000,000 | ||||
Ending Balance - Common Stock Outstanding (shares) | 170,549,000 | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Exercises in Period | 935,000 | ||||
Stock Issued During Period, Value, Conversion of Convertible Securities | 362,000,000 | 362,000,000 | |||
Equity compensation | 54,000,000 | 54,000,000 | |||
Payment, Tax Withholding, Share-Based Payment Arrangement | (10,000,000) | (10,000,000) | |||
APIC, Share-Based Payment Arrangement, Option, Increase for Cost Recognition | 26,000,000 | 26,000,000 | |||
Equity issued in lieu of cash consideration | 12,000,000 | ||||
APIC, Share-Based Payment Arrangement, ESPP, Increase for Cost Recognition | 12,000,000 | ||||
Dividends, Preferred Stock | (6,000,000) | (6,000,000) | |||
Net Income (Loss) Attributable to Parent | 499,000,000 | 499,000,000 | |||
Other Comprehensive Income (Loss), Net of Tax | (77,000,000) | (77,000,000) | |||
Ending Balance at Jun. 30, 2022 | $ 2,000,000 | $ 4,649,000,000 | $ 518,000,000 | $ (394,000,000) | 4,775,000,000 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Temporary Equity, Carrying Amount, Period Increase (Decrease) | (359,000,000) | ||||
Stock Issued During Period, Shares, Conversion of Convertible Securities | 7,818,000 | ||||
Redeemable Preferred Stock Outstandings | $ 0 | ||||
Ending Balance - Common Stock Outstanding (shares) | 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] | |
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 |
Statement of Cash Flows (Statem
Statement of Cash Flows (Statement) - USD ($) | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | $ 499,000,000 | $ 585,000,000 | $ 221,000,000 |
Depreciation, Depletion and Amortization | 378,000,000 | 289,000,000 | 254,000,000 |
Amortization And Write Off Of 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 | (1,000,000) | (182,000,000) | 1,000,000 |
Debt Related Commitment Fees and Debt Issuance Costs | 4,000,000 | 18,000,000 | 10,000,000 |
Derivative, Gain (Loss) on Derivative, Net | (2,000,000) | (17,000,000) | (3,000,000) |
Share-Based Payment Arrangement, Noncash Expense | 54,000,000 | 51,000,000 | 48,000,000 |
Increase (Decrease) in Deferred Income Taxes | 9,000,000 | 64,000,000 | 2,000,000 |
Provision For Bad Debts And Inventory | 17,000,000 | 41,000,000 | 10,000,000 |
Increase (Decrease) in Accounts Receivable | (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 |
Increase (Decrease) in Other Operating Assets and Liabilities, Net | (423,000,000) | (36,000,000) | 33,000,000 |
Net Cash Provided by (Used in) Operating Activities | 439,000,000 | 433,000,000 | 440,000,000 |
Payments to Acquire Property, Plant, and Equipment | (660,000,000) | (686,000,000) | (466,000,000) |
Payments to Acquire Debt Securities, Available-for-Sale | 20,000,000 | 72,000,000 | 0 |
Proceeds from Divestiture of Interest in Consolidated Subsidiaries | 287,000,000 | 21,000,000 | |
Settlement on sale of subsidiaries | 3,000,000 | ||
Payments to Acquire Businesses, Net of Cash Acquired | (1,199,000,000) | (147,000,000) | (379,000,000) |
Payments to Acquire Other Investments | 2,000,000 | 31,000,000 | 3,000,000 |
Net Cash Provided by (Used in) Investing Activities | (1,884,000,000) | (649,000,000) | (827,000,000) |
Proceeds from Issuance of Debt | 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) |
Payments of Ordinary Dividends | 4,000,000 | 22,000,000 | 36,000,000 |
Proceeds from Stock Options Exercised | 26,000,000 | 38,000,000 | 0 |
Payment, Tax Withholding, Share-Based Payment Arrangement | (10,000,000) | (46,000,000) | (32,000,000) |
Proceeds from (Payments for) Other Financing Activities | 12,000,000 | 10,000,000 | 0 |
Stock Issued During Period, Value, Conversion of Convertible Securities, Net of Adjustments | 362,000,000 | 253,000,000 | 0 |
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, Period Increase (Decrease), Including Exchange Rate Effect | (447,000,000) | (57,000,000) | 608,000,000 |
Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents | 449,000,000 | 896,000,000 | 953,000,000 |
Proceeds from Issuance of Common Stock | 0 | 82,000,000 | 1,046,000,000 |
Net Cash Provided by (Used in) Financing Activities | 1,031,000,000 | 142,000,000 | 1,002,000,000 |
Gain (Loss), Foreign Currency Transaction, before Tax | 30,000,000 | 4,000,000 | (2,000,000) |
Supplemental Cash Flow Information [Abstract] | |||
Interest Paid, Excluding Capitalized Interest, Operating Activities | 116,000,000 | 105,000,000 | 98,000,000 |
Income Taxes Paid, Net | 53,000,000 | 47,000,000 | 43,000,000 |
Cash Flow, Noncash Investing and Financing Activities Disclosure [Abstract] | |||
Stock Issued During Period, Value, Conversion of Convertible Securities, Net of Adjustments | 362,000,000 | 253,000,000 | 0 |
Disposal Group, Including Discontinued Operation, Accounts, Notes and Loans Receivable, Net | $ 0 | $ 47,000,000 | $ 0 |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 12 Months Ended |
Jun. 30, 2022 | |
Text Block [Abstract] | |
Basis of Presentation and Significant Accounting Policies [Text Block] | 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. Reportable Segments Effective July 1, 2022, in connection with the appointment of a new President and Chief Executive Officer, the Company changed its operating structure and reorganized its executive leadership team accordingly. This new organizational structure includes simplifying the four operating and reportable segments the Company disclosed during fiscal 2022 to two: (i) Biologics and (ii) Pharma and Consumer Health. Set forth below is a summary description of the Company's two current operating and reportable segments. The consolidated financial statements for the years ended June 30, 2022, 2021 and 2020 set forth herein have been recast retrospectively to reflect the new reporting structure. Biologics—The Biologics segment provides the same services as the Biologics segment the Company reported in fiscal 2022, with some organizational adjustments and the addition of analytical development and testing services for large molecules that were previously disclosed as part of the Company's prior Oral and Specialty Delivery segment. The Biologics segment as reorganized provides development and manufacturing for biologic proteins; cell, gene, and other nucleic acid therapies; plasmid DNA; induced pluripotent stem cells (iPSCs); oncolytic viruses, and vaccines. It also provides formulation, development, and manufacturing for parenteral dose forms, including vials, prefilled syringes, and cartridges; and, as noted above, analytical development and testing services for large molecules. Pharma and Consumer Health—The Pharma and Consumer Health segment encompasses, except as noted above, the offerings of three of the Company's prior reportable segments—Softgel and Oral Technologies, Oral and Specialty Delivery, and Clinical Supply Services—and comprises the Company’s market-leading capabilities for complex oral solids, softgel formulations, Zydis® fast-dissolve technologies, and gummy, soft chew, and lozenge dosage forms; formulation, development, and manufacturing platforms for oral, nasal, inhaled, and topical dose forms; and clinical trial development and supply services. Each segment reports through a separate management team and ultimately reports to the Company's President and Chief Executive Officer, who is designated as the Chief Operating Decision Maker for segment reporting purposes. The Company's operating segments are the same as its reportable segments. All prior-period comparative segment information has been recast retrospectively to reflect the current reportable segments in accordance with Accounting Standards Codification (“ASC”) 280, Segment Reporting , promulgated by the Financial Accounting Standards Board (the “FASB”). 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 respec tive fair value exceeded its carrying value, indicating there was no impairment. For more information regarding goodwill balances at June 30, 2022, see Note 5, 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 10, 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 14, 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, |
Accounting Changes and Error Co
Accounting Changes and Error Corrections | 12 Months Ended |
Jun. 30, 2022 | |
Accounting Changes and Error Corrections [Abstract] | |
Revisions of Previously issued Financial. Statements [Text Block] | REVISIONS OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS In preparing the consolidated financial statements for the three and nine months ended March 31, 2023, the Company identified a $26 million error related to the over recognition of revenue in the consolidated financial statements it issued with respect to the fiscal year ended 2022. This error resulted from the misapplication of the contract modification guidance in accordance with ASC 606, Revenue from Contracts with Customers, related to one of the Company’s customer arrangements. The Company assessed the materiality of the error both quantitatively and qualitatively and determined this error to be immaterial to the 2022 consolidated financial statements. However, the Company concluded that the effect of correcting the error in the quarter ended March 31, 2023 would materially misstate the Company’s unaudited consolidated financial statements for the three and nine months ended March 31, 2023 and, accordingly, determined that it was necessary to revise the consolidated financial statements it previously issued with respect to the fiscal year ended June 30, 2022. The remainder of the notes to the Company's consolidated financial statements have been updated and revised, as applicable, to reflect the impacts of the adjustment described in this Note 1. The following tables reflect the impact of this revision on the Company’s consolidated financial statements as of and for the fiscal year ended June 30, 2022: Consolidated Balance Sheet June 30, 2022 (Dollars in millions) As Previously Reported Adjustment As Revised Prepaid expenses and other $ 625 $ 1 $ 626 Total current assets 2,916 1 2,917 Total assets 10,507 1 10,508 Other accrued liabilities 620 26 646 Total current liabilities 1,072 26 1,098 Deferred income taxes 202 (5) 197 Total liabilities 5,712 21 5,733 Retained earnings 538 (20) 518 Total shareholders' equity 4,795 (20) 4,775 Total liabilities and shareholders' equity $ 10,507 $ 1 10,508 Consolidated Statement of Operations and Statement of Comprehensive Income Fiscal Year Ended June 30, 2022 (Dollars in millions) As Previously Reported Adjustment As Revised Net revenue $ 4,828 $ (26) $ 4,802 Gross margin 1,640 (26) 1,614 Operating earnings 756 (26) 730 Earnings before income taxes 605 (26) 579 Income tax expense 86 (6) 80 Net earnings 519 (20) 499 Net earnings attributable to common shareholders 503 (20) 483 Earnings per share – basic 2.85 (0.11) 2.74 Earnings per share – diluted 2.84 (0.11) 2.73 Comprehensive income $ 442 $ (20) $ 422 Statement of Cash Flows Fiscal year ended June 30, 2022 (Dollars in millions) As Previously Reported Adjustment As Revised Net earnings $ 519 $ (20) $ 499 Provision for deferred income taxes 14 (5) 9 Change in operating assets and liabilities: Other assets/accrued liabilities, net - current and non-current $ (448) $ 25 $ (423) The following table reflects the impact of this revision on the Company’s consolidated statement of operations for the three months ended June 30, 2022 (unaudited): Consolidated Statement of Operations (Unaudited) Three Months Ended June 30, 2022 (Dollars in millions) As Previously Reported Adjustment As Revised Net revenue $ 1,313 $ (26) $ 1,287 Gross margin 488 (26) 462 Operating earnings 246 (26) 220 Earnings before income taxes 211 (26) 185 Income tax expense 23 (6) 17 Net earnings 188 (20) 168 Net earnings attributable to common shareholders 188 (20) 168 Earnings per share – basic 1.04 (0.10) 0.94 Earnings per share – diluted $ 1.04 $ (0.11) $ 0.93 |
Basis of Presentation and Significant Accounting Policies [Text Block] | 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. Reportable Segments Effective July 1, 2022, in connection with the appointment of a new President and Chief Executive Officer, the Company changed its operating structure and reorganized its executive leadership team accordingly. This new organizational structure includes simplifying the four operating and reportable segments the Company disclosed during fiscal 2022 to two: (i) Biologics and (ii) Pharma and Consumer Health. Set forth below is a summary description of the Company's two current operating and reportable segments. The consolidated financial statements for the years ended June 30, 2022, 2021 and 2020 set forth herein have been recast retrospectively to reflect the new reporting structure. Biologics—The Biologics segment provides the same services as the Biologics segment the Company reported in fiscal 2022, with some organizational adjustments and the addition of analytical development and testing services for large molecules that were previously disclosed as part of the Company's prior Oral and Specialty Delivery segment. The Biologics segment as reorganized provides development and manufacturing for biologic proteins; cell, gene, and other nucleic acid therapies; plasmid DNA; induced pluripotent stem cells (iPSCs); oncolytic viruses, and vaccines. It also provides formulation, development, and manufacturing for parenteral dose forms, including vials, prefilled syringes, and cartridges; and, as noted above, analytical development and testing services for large molecules. Pharma and Consumer Health—The Pharma and Consumer Health segment encompasses, except as noted above, the offerings of three of the Company's prior reportable segments—Softgel and Oral Technologies, Oral and Specialty Delivery, and Clinical Supply Services—and comprises the Company’s market-leading capabilities for complex oral solids, softgel formulations, Zydis® fast-dissolve technologies, and gummy, soft chew, and lozenge dosage forms; formulation, development, and manufacturing platforms for oral, nasal, inhaled, and topical dose forms; and clinical trial development and supply services. Each segment reports through a separate management team and ultimately reports to the Company's President and Chief Executive Officer, who is designated as the Chief Operating Decision Maker for segment reporting purposes. The Company's operating segments are the same as its reportable segments. All prior-period comparative segment information has been recast retrospectively to reflect the current reportable segments in accordance with Accounting Standards Codification (“ASC”) 280, Segment Reporting , promulgated by the Financial Accounting Standards Board (the “FASB”). 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 respec tive fair value exceeded its carrying value, indicating there was no impairment. For more information regarding goodwill balances at June 30, 2022, see Note 5, 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 10, 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 14, 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 Disclosure | 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 Pharma and Consumer Health Total Balance at June 30, 2020 $ 1,494 $ 977 $ 2,471 Additions (1) 54 2 56 Divestitures (2) — (54) (54) Foreign currency translation adjustments 14 32 46 Balance at June 30, 2021 1,562 957 2,519 Additions (3) 41 531 572 Foreign currency translation adjustments (37) (48) (85) Balance at June 30, 2022 $ 1,566 $ 1,440 $ 3,006 (1) The additions to goodwill arise from the Skeletal (Biologics), Delphi (Biologics) and Acorda (Pharma and Consumer Health) transactions. For further details, see Note 4, 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 (Pharma and Consumer Health), Princeton (Biologics), RheinCell (Biologics), and Delphi (Biologics) acquisitions. For further details, see Note 4, Business Combinations and Divestitures . |
Intangible Assets Disclosure | 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 Related Activities Disclosure | 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 Pharma and Consumer Health 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 |
Business Combination Disclosure | BUSINESS COMBINATIONS AND DIVESTITURES Skeletal Cell Therapy Support SA Acquisition In November 2020, the Company acquired 100% of the equity interest in Skeletal Cell Therapy Support SA (“Skeletal”) for $15 million, and entered into related supply agreements with the seller. Skeletal operates a cell therapy manufacturing facility in Gosselies, Belgium. The operations were assigned to the Company’s Biologics segment, expanding the Company’s cell therapy capacity for clinical and commercial supply. The acquisition, combined with the Company's other European-based facilities and capabilities in cell therapy, has resulted in an integrated European center of excellence in cell therapy. The Company accounted for the Skeletal acquisition using the acquisition method in accordance with ASC 805, Business Combinations . The Company funded the entire purchase price with cash on hand and allocated the purchase price among the acquired assets, recognizing $9 million of goodwill. The Company allocated the remainder of the purchase price to trade receivables, property, plant, and equipment, and other current and non-current assets and liabilities assumed in the acquisition. Results for the fiscal years ended June 30, 2022 and 2021 were not material to the Company’s statement of operations, financial position, or cash flows. Acorda Therapeutics, Inc. Transaction In February 2021, the Company acquired the manufacturing and packaging operations of Acorda Therapeutics, Inc.'s (“Acorda”) dry powder inhaler and spray dry manufacturing business, including its manufacturing facility located near Boston, Massachusetts, for $83 million . In connection with the purchase, Acorda and the Company entered into a long-term supply agreement, under which the Company continues to manufacture and package an Acorda product at the facility. The facility and operations became part of the Company’s Pharma and Consumer Health segment. Results of the business acquired were not material to the Company's statement of operations, financial position, or cash flows for the fiscal years ended June 30, 2022 and 2021. The Company accounted for the Acorda transaction using the acquisition method in accordance with ASC 805. The Company funded the entire purchase price with cash on hand and allocated the purchase price among the acquired assets, recognizing property, plant, and equipment of $79 million , inventory of $2 million , and goodwill of $2 million . The remainder of the purchase price was allocated to other current and non-current assets and liabilities assumed in the acquisition. Delphi Genetics SA Acquisition In February 2021, the Company acquired 100% of the equity interest in Delphi Genetics SA (“Delphi”) for $50 million . Delphi is a pDNA cell and gene therapy contract development and manufacturing organization based in Gosselies, Belgium. The facility and operations acquired became part of the Company’s Biologics segment. Results of the business acquired were not material to the Company's statement of operations, financial position, or cash flows for the fiscal years ended June 30, 2022 and 2021. The Company accounted for the Delphi transaction using the acquisition method in accordance with ASC 805. The Company funded the entire purchase price with cash on hand and allocated the purchase price among the acquired assets, recognizing property, plant, and equipment of $4 million , intangible assets of $7 million , other current assets of $3 million , assumed debt of $6 million , other current liabilities of $1 million and goodwill of $43 million . Hepatic Cell Therapy Support SA Asset Acquisition In April 2021, the Company acquired 100% of the equity interest in Hepatic Cell Therapy Support SA (“Hepatic”) for approximately $15 million , net of cash acquired and debt assumed. Hepatic operates a manufacturing facility at the same location where Skeletal operates a cell therapy manufacturing facility in Gosselies, Belgium. The facility acquired expands the C ompany’s cell therapy capacity for clinical and commercial supply in its Biologics segment. The Company accounted for the Hepatic transaction as an asset acquisition in accordance with ASC 805. The Company funded the entire purchase price with cash on hand and allocated the purchase price to the assets acquired and liabilities assumed, recognizing property, plant, and equipment of $13 million, other current and non-current assets of $3 million, and assumed debt of $1 million. RheinCell Therapeutics GmbH Acquisition In August 2021, the Company acquired 100% of the equity interest in RheinCell Therapeutics GmbH (“RheinCell”) for approximately $26 million, net of cash acquired. RheinCell is a developer and manufacturer of development and cGMP-grade iPSCs based in Lagenfeld, Germany. The operations became part of the Company’s Biologics segment and builds upon Catalent’s existing custom cell therapy process development and manufacturing capabilities with proprietary cGMP cell lines for iPSC-based therapies. The Company accounted for the RheinCell transaction using the acquisition method in accordance with ASC 805. The Company funded the entire purchase price with cash on hand and allocated the purchase price among the assets acquired, recognizing $4 million of current liabilities, $1 million of other liabilities, $14 million of intangible assets, and goodwill of $17 million. Results of this business were not material to the Company's statement of operations, financial position, or cash flows for the fiscal year ended June 30, 2022. Bettera Holdings, LLC Acquisition In October 2021, the Company acquired 100% of the equity interest in Bettera Wellness for approximately $1 billion, which was funded in part with net proceeds of the Company’s issuance of $650 million aggregate principal amount of 3.500% Senior Notes due 2030 (the “2030 Notes”) and in part with net proceeds from the Incremental Term B-3 Loans (as defined in Note 8, Long-Term Obligations and Short-Term Borrowings) . Bettera Wellness is a manufacturer of nutraceuticals and nutritional supplements in gummy, soft chew, and lozenge delivery formats. The Company accounted for the Bettera Wellness transaction using the acquisition method in accordance with ASC 805. The Company estimated fair values at the date of acquisition for the allocation of consideration to the net tangible and intangible assets acquired and liabilities assumed. The final purchase price was allocated to assets acquired and liabilities assumed in the acquisition as follows: (Dollars in millions) Purchase Price Allocation Cash and cash equivalents $ 23 Trade receivables, net 16 Inventories 31 Other current assets 4 Property, plant, and equipment 72 Other intangibles, net (1) 361 Other assets 12 Current liabilities (22) Other liabilities (11) Goodwill 531 Total assets acquired and liabilities assumed $ 1,017 (1) Other intangibles, net includes core technology of $338 million and customer relationships of $23 million. The carrying value of trade receivables, inventory, and trade payables, as well as certain other current and non-current assets and liabilities, generally represented the fair value at the date of acquisition. Property, plant, and equipment assets were valued using the cost approach, which is based on current replacement and/or reproduction cost of the related asset as new, less depreciation attributable to physical, functional, and economic factors. The Company then determined the remaining useful life based on the anticipated life of the asset and Company policy for similar assets. Core technology intangible assets of $338 million were valued using the multi-period, excess-earnings method, a method that values the intangible asset using the present value of the after-tax cash flows attributable to the intangible asset only. The significant assumptions used in developing the valuation included the estimated annual net cash flows (including application of an appropriate margin to forecasted revenue, revenue obsolescence rate, selling and marketing costs, return on working capital, contributory asset charges, and other factors), the discount rate that appropriately reflects the risk inherent in each future cash flow stream, and an assessment of the asset’s life cycle, as well as other factors. The assumptions used in the financial forecasts were based on historical data, supplemented by current and anticipated growth rates, management plans, and market-comparable information. Fair-value determinations require considerable judgment and are sensitive to changes in underlying assumptions and factors. The core technology intangible asset has a weighted average useful life of 10 years. Goodwill has been allocated to the Pharma and Consumer Health segment as shown in Note 5, Goodwill . Goodwill is mainly comprised of growth from expected increases in capacity utilization and new customers. The goodwill resulting from the Bettera Wellness acquisition is deductible for tax purposes. Results of this business were not material to the Company's consolidated statement of operations, financial position, or cash flows for the fiscal year ended June 30, 2022. Vaccine Manufacturing and Innovation Centre UK Limited Asset Acquisition In April 2022, the Company, through its wholly owned subsidiary, Catalent Oxford Limited, acquired a development and manufacturing facility near Oxford, United Kingdom (“U.K.”) and certain related assets and liabilities from The Vaccine Manufacturing and Innovation Centre UK Limited for $134 million in cash, including $9 million of closing costs. The facility and related assets and liabilities became part of the Company’s Biologics segment. The Company accounted for this transaction as an acquisition of assets in accordance with ASC 805. The Company funded this acquisition with cash on hand and allocated the purchase price among the net assets acquired, recognizing $1 million of current assets, $165 million of property, plant, and equipment, $18 million of current liabilities, and $14 million of other liabilities. Results of this business were not material to the Company's statement of operations, financial position, or cash flows for the fiscal year ended June 30, 2022. Princeton Cell Therapy Development and Manufacturing Acquisition In April 2022, the Company acquired a cell therapy commercial manufacturing facility and operations near Princeton, New Jersey (“Princeton”) from Erytech Pharma S.A. (“Erytech”) for $45 million in cash, subject to customary adjustments. In connection with the purchase, Erytech and the Company entered into a long-term supply agreement, under which the Company will continue to manufacture and package an Erytech product at the Princeton facility. The operations and facility acquired became part of the Company’s Biologics segment. The Company accounted for this transaction using the acquisition method in accordance with ASC 805. The Company funded this acquisition with cash on hand and preliminarily allocated the purchase price among the assets acquired, recognizing $22 million of property, plant, and equipment, $10 million of other assets, $1 million of current liabilities, $10 million of other liabilities, and goodwill of $24 million. Results of this business were not material to the Company's statement of operations, financial position, or cash flows for the fiscal year ended June 30, 2022. The Company has not completed its analysis regarding the assets acquired and liabilities assumed. Therefore, the allocation to property, plant and equipment is preliminary and subject to finalization. The Company expects to finalize its allocation over the next several months, but, in any event, within one year from the acquisition date. Blow-Fill-Seal Divestitur e In March 2021, the Company sold 100% of the shares of Catalent USA Woodstock, Inc. and certain related assets (collectively, the “Blow-Fill-Seal Business”) for $300 million cash, a $50 million note receivable (estimated fair value of $47 million) as well as potential additional contingent consideration (up to $50 million) dependent upon the performance of aspects of the Blow-Fill-Seal Business. The Blow-Fill-Seal Business was part of the Pharma and Consumer segment. The carrying value of the net assets sold was $149 million, which included goodwill of $54 million. As a result of the sale, the Company realized a gain from divestiture of $182 million, net of transaction costs, for the fiscal year ended June 30, 2021. During the fiscal year ended June 30, 2022, the Company settled a post-closing purchase price adjustment, which resulted in a gain on sale of subsidiary of $1 million. All consideration received was measured at its divestiture date fair value. The Company valued the total consideration received from divestiture of the Blow-Fill-Seal Business as follows: (Dollars in millions) Fair value of consideration received Cash, gross $ 300 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 |
Debt Disclosure | LONG-TERM OBLIGATIONS AND SHORT-TERM BORROWINGS 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. Senior Secured Credit Facilities and Sixth Amendment to the Credit Agreement In September 2021, Operating Company entered into Amendment No. 6 (the "Sixth Amendment") to its Amended and Restated Credit Agreement, dated as of May 20, 2014 (as subsequently amended, the "Credit Agreement"). Pursuant to the Sixth Amendment, Operating Company incurred an additional $450 million aggregate principal amount of U.S. dollar-denominated term loans (the "Incremental Term B-3 Loans") and amended the quarterly amortization payments from 0.25% to 0.2506% of the principal amount outstanding for the Incremental Term B-3 Loans and the other term loans outstanding under the Credit Agreement, all of which are U.S. dollar-denominated (together with the Incremental Term B-3 Loans, the “Term B-3 Loans”). The Incremental Term B-3 Loans otherwise feature the same principal terms as the drawn Term B-3 Loans, including an interest rate of one-month LIBOR (subject to a floor of 0.50%) plus 2.00% per annum and a maturity date of February 2028. The proceeds of the Incremental Term B-3 Loans, after payment of the offering fees and expenses, were used in part to fund a portion of the consideration paid at the closing of the Bettera Wellness acquisition. The Sixth Amendment also provided for incremental revolving credit commitments under Operating Company’s secured revolving credit commitments, which is part of its senior secured credit facilities (as amended, the “Revolving Credit Facility”). The applicable rate for all loans drawn under the Revolving Credit Facility is one-month LIBOR plus 2.25% and such rate can be reduced to one-month LIBOR plus 2.00% in future periods based on a measure of Operating Company's total leverage ratio. The maturity date for the Revolving Credit Facility is May 17, 2024. In addition, pursuant to Amendment No. 5 to the Credit Agreement (the “Fifth Amendment”), certain modifications were made to the Credit Agreement in order to, among other things, provide for determination of a benchmark replacement interest rate when LIBOR is no longer available. Pursuant to the terms of the Credit Agreement the interest rates under the Term B-3 Loans and loans drawn under the Revolving Credit Facility will be based on a replacement benchmark interest rate when LIBOR is no longer available. The availability of capacity under the Revolving Credit Facility is reduced by the aggregate value of all outstanding letters of credit under the Credit Agreement. As of June 30, 2022, Operating Company had $721 million of unutilized capacity under the Revolving Credit Facility due to $4 million of outstanding letters of credit. 5.000% Senior Notes due 2027 In June 2019, Operating Company completed a private offering of $500 million aggregate principal amount of 5.000% Senior Notes due 2027 (the “2027 Notes”). The 2027 Notes are fully and unconditionally guaranteed, jointly and severally, by all of the wholly owned U.S. subsidiaries of Operating Company that guarantee its senior secured credit facilities. The 2027 Notes were offered in the U.S to qualified institutional buyers in reliance on Rule 144A under the Securities Act of 1933, as amended (the "Securities Act") and outside the U.S only to non-U.S. investors pursuant to Regulation S under the Securities Act. The 2027 Notes will mature on July 15, 2027 and bear interest at the rate of 5.000% per annum. Interest is payable semi-annually in arrears on January 15 and July 15 of each year, beginning on January 15, 2020. The proceeds of the 2027 Notes after payment of the offering fees and expenses were used to repay in full the borrowings under Operating Company’s then-outstanding term loans under its senior secured credit facilities that would otherwise have matured in May 2024. 2.375% Euro-denominated Senior Notes due 2028 In March 2020, Operating Company completed a private offering of €825 million aggregate principal amount of 2.375% Senior Notes due 2028 (the "2028 Notes"). The 2028 Notes are fully and unconditionally guaranteed, jointly and severally, by all of the wholly owned U.S. subsidiaries of Operating Company that guarantee its senior secured credit facilities. The 2028 Notes were offered in the U.S. to qualified institutional buyers in reliance on Rule 144A under the Securities Act and outside the U.S. only to non-U.S. investors pursuant to Regulation S under the Securities Act. The 2028 Notes will mature on March 1, 2028 and bear interest at the rate of 2.375% per annum. Interest is payable semi-annually in arrears on March 1 and September 1 of each year. The proceeds of the 2028 Notes after payment of the offering fees and expenses were used to repay in full the borrowings then outstanding under Operating Company's euro-denominated term loans under its senior secured credit facilities, which would have matured in May 2024, and repay in full Operating Company's euro-denominated 4.75% Senior Notes due 2024 (the “2024 Notes”), which would have matured in December 2024, plus any accrued and unpaid interest thereon, with the remainder available for general corporate purposes. 3.125% Senior Notes due 2029 In February 2021, Operating Company completed a private offering of $550 million aggregate principal amount of 3.125% Senior Notes due 2029 (the "2029 Notes"). The 2029 Notes are fully and unconditionally guaranteed, jointly and severally, by all of the wholly owned U.S. subsidiaries of Operating Company that guarantee its senior secured credit facilities. The 2029 Notes will mature on February 15, 2029 and bear interest at the rate of 3.125% per annum payable semi-annually in arrears on February 15 and August 15 of each year, beginning on August 15, 2021. The proceeds of the 2029 Notes after payment of the offering fees and expenses were used to repay in full the outstanding borrowings under Operating Company's 4.875% Senior Notes due 2026 (the "2026 Notes"), which would have matured in January 2026 plus any accrued and unpaid interest thereon, with the remainder available for general corporate purposes. 3.500% Senior Notes due 2030 In September 2021, Operating Company completed a private offering of the 2030 Notes (together with the 2027 Notes, the 2028 Notes, and the 2029 Notes, the "Senior Notes"). The 2030 Notes are fully and unconditionally guaranteed, jointly and severally, by all of the wholly owned U.S. subsidiaries of Operating Company that guarantee its senior secured credit facilities. The 2030 Notes were offered in the U.S. to qualified institutional buyers in reliance on Rule 144A under the Securities Act and outside the U.S. only to non-U.S. investors pursuant to Regulation S under the Securities Act. The 2030 Notes will mature on April 1, 2030 and bear interest at the rate of 3.500% per annum payable semi-annually in arrears on April 1 and October 1 of each year, beginning on April 1, 2022. The proceeds of the 2030 Notes, after payment of the offering fees and expenses, were used to fund a portion of the consideration paid at the closing of the Bettera Wellness acquisition. Deferred Purchase Consideration In connection with the acquisition of Cook Pharmica LLC (now Catalent Indiana, LLC) in October 2017, $200 million of the $950 million aggregate nominal purchase price was payable in $50 million installments, on each of the first four anniversaries of the closing date. The Company made installment payments in October 2018, October 2019, October 2020 and the final payment was made in October 2021. Long-Term and Other Obligations Other obligations consist primarily of finance leases for buildings and other loans for business and working capital needs. 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 Debt Issuance Costs Debt issuance costs associated with the Credit Agreement (other than its Revolving Credit Facility component) and the Senior Notes are presented as a reduction to the carrying value of the related debt, while debt issuance costs associated with the Revolving Credit Facility are capitalized within other long-term assets on the consolidated balance sheet. All debt issuance costs are amortized over the life of the related obligation through charges to interest expense in the consolidated statements of operations. The unamortized total debt issuance costs, including the costs associated with the Revolving Credit Facility capitalized within other long-term assets, were $42 million and $39 million as of June 30, 2022 and 2021, respectively. Amortization of debt issuance costs totaled $7 million and $6 million for the fiscal years ended June 30, 2022 and 2021, respectively. Guarantees and Security Senior Secured Credit Facilities All obligations under the Credit Agreement, and the guarantees of those obligations, are secured by substantially all of the following assets of Operating Company and each guarantor (Operating Company's parent entity, PTS Intermediate, and each of Operating Company's material domestic subsidiaries), subject to certain exceptions: • a pledge of 100% of the capital stock of Operating Company and 100% of the equity interests directly held by Operating Company and each guarantor in any wholly owned material subsidiary of Operating Company or any guarantor (which pledge, in the case of any non-U.S. subsidiary of a U.S. subsidiary, will not include more than 65% of the voting stock of such non-U.S. subsidiary); and • a security interest in, and mortgages on, substantially all tangible and intangible assets of Operating Company and of each guarantor, subject to certain limited exceptions. The Senior Notes All obligations under the Senior Notes are general, unsecured, and subordinated to all existing and future secured indebtedness of the guarantors to the extent of the value of the assets securing such indebtedness. Each of the Senior Notes is separately guaranteed by all of Operating Company's wholly owned U.S. subsidiaries that guarantee the senior secured credit facilities. None of the Senior Notes is guaranteed by either PTS Intermediate or the Company. Debt Covenants Senior Secured Credit Facilities The Credit Agreement contains covenants that, among other things, restrict, subject to certain exceptions, Operating Company’s (and Operating Company’s restricted subsidiaries’) ability to incur additional indebtedness or issue certain preferred shares; create liens on assets; engage in mergers and consolidations; sell assets; pay dividends and distributions or repurchase capital stock; repay subordinated indebtedness; engage in certain transactions with affiliates; make investments, loans or advances; make certain acquisitions; enter into sale and leaseback transactions; amend material agreements governing Operating Company's subordinated indebtedness and change Operating Company's lines of business. The Credit Agreement also contains change of control provisions and certain customary affirmative covenants and events of default. The Revolving Credit Facility requires compliance with a net leverage covenant when there is a 30% or more draw outstanding at a period end. As of June 30, 2022, the Company was in compliance with all material covenants under the Credit Agreement. Subject to certain exceptions, the Credit Agreement permits Operating Company and its restricted subsidiaries to incur certain additional indebtedness, including secured indebtedness. None of Operating Company’s non-U.S. subsidiaries nor its dormant Puerto Rico subsidiary is a guarantor of the loans. Under the Credit Agreement, Operating Company’s ability to engage in certain activities such as incurring certain additional indebtedness, making certain investments, and paying certain dividends is tied to ratios based on Adjusted EBITDA (which is defined as “Consolidated EBITDA” in the Credit Agreement). Adjusted EBITDA is based on the definitions in the Credit Agreement, is not defined under U.S. GAAP, and is subject to important limitations. The Senior Notes The various indentures governing the Senior Notes (collectively, the “Indentures”) contain covenants that, among other things, limit the ability of Operating Company and its restricted subsidiaries to incur or guarantee more debt or issue certain preferred shares; pay dividends on, repurchase, or make distributions in respect of their capital stock or make other restricted payments; make certain investments; sell certain assets; create liens; consolidate, merge, sell; or otherwise dispose of all or substantially all of their assets; enter into certain transactions with their affiliates, and designate their subsidiaries as unrestricted subsidiaries. These covenants are subject to a number of exceptions, limitations, and qualifications as set forth in the Indentures. The Indentures also contain customary events of default, including, but not limited to, nonpayment, breach of covenants, and payment or acceleration defaults in certain other indebtedness of Operating Company or certain of its subsidiaries. Upon an event of default, either the holders of at least 30% in principal amount of each of the then-outstanding Senior Notes or the applicable Trustee under the Indentures may declare the applicable notes immediately due and payable; or in certain circumstances, the applicable notes will automatically become immediately due and payable. As of June 30, 2022, Operating Company was in compliance with all material covenants under the Indentures. Estimated Fair Value of Debt Measurements The estimated fair values of the senior secured credit facilities and Senior Notes are classified as Level 2 (see Note 11, Fair Value Measurements for a description of the method by which fair value classifications are determined) in the fair value hierarchy and are calculated by using a discounted cash flow model with market interest rate as a significant input. 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 | EARNINGS PER SHARE The Company computed earnings per share (“EPS”) of the Common Stock for fiscal 2020, 2021, and 2022 using the two-class method required due to the participating nature of the formerly outstanding Series A Preferred Stock (as noted and defined in Note 14, Equity, Redeemable Preferred Stock and Accumulated Other Comprehensive Loss) . The weighted-average number of shares outstanding utilized in diluted earnings per share is computed using the weighted-average number of common shares outstanding plus the number of common shares that would be issued assuming exercise or conversion of all potentially dilutive instruments. Dilutive securities having an anti-dilutive effect on diluted net income per share are excluded from the calculation. The dilutive effect of the securities that are issuable under the Company’s equity incentive plans (see Note 15, Stock-Based Compensation ) are reflected in diluted earnings per share by application of the treasury stock method. The Company applied the if-converted method to compute the potentially dilutive effect of the Series A Preferred Stock. 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 $ 499 $ 585 $ 221 Less: Net earnings attributable to preferred shareholders (16) (56) (48) Net earnings attributable to common shareholders $ 483 $ 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 $ 2.74 $ 3.15 $ 1.16 Diluted $ 2.73 $ 3.11 $ 1.14 The Company's Series A Preferred Stock was deemed a participating security, meaning that it had the right to participate in undistributed earnings with the Company's Common Stock. On November 23, 2020 (the “Partial Conversion Date”), holders of Series A Preferred Stock converted 265,223 shares and $2 million of unpaid accrued dividends into shares of Common Stock (the “Partial Conversion”). The holders received 20.33 shares of Common Stock for each converted preferred share, resulting in the issuance of 5,392,280 shares of Common Stock. On November 18, 2021 (the “Final Conversion Date”), the holders of Series A Preferred Stock converted the remaining 384,777 shares of Series A Preferred Stock and $2 million of unpaid accrued dividends into shares of Common Stock (the “Final Conversion”). These holders received 20.32 shares of Common Stock for each converted share of Series A Preferred Stock, resulting in the aggregate issuance of 7,817,554 shares of Common Stock by the Company. See Note 14, Equity, Redeemable Preferred Stock and Accumulated Other Comprehensive Loss for further details. 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 Hedging Activities Disclosure | 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 14, Equity, Redeemable Preferred Stock and Accumulated Other Comprehensive Loss, in May 2019, the Company issued shares of Series A Preferred Stock in exchange for net proceeds of $646 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 14, 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 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 4, Business Combinations and Divestitures , there was no non-recurring fair value measurement during the fiscal years ended June 30, 2022 and 2021. |
Income Tax Disclosure | INCOME TAXES 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 $ 224 $ 457 $ 121 Non-U.S. operations 355 258 139 Total $ 579 $ 715 $ 260 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 14 20 1 Non-U.S. 66 38 33 Total current expense $ 72 $ 66 $ 35 Deferred: Federal $ 6 $ 62 $ 11 State and local (5) 7 6 Non-U.S. 7 (5) (13) Total deferred expense $ 8 $ 64 $ 4 Total provision $ 80 $ 130 $ 39 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 $ 122 $ 150 $ 55 State and local income taxes 10 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 $ 80 $ 130 $ 39 The income tax provision for the fiscal year ended June 30, 2022 is not comparable to the provision in the prior year due to changes in the geographic mix of pretax income, changes in the tax impact of permanent differences and credits, and the tax impact of discrete items. The lower effective tax rate for the fiscal year ended June 30, 2022 is primarily due to (i) increased income tax benefit resulting from a relative increase in non-U.S. earnings that are subject to more favorable tax rates than in the U.S., and (ii) an increased U.S. foreign tax credit due to amended prior-year returns. The Company also recognized a net deferred benefit of $21 million related to recently enacted tax reform in Switzerland and related transition rules (collectively, “ Swiss Tax Reform ”) presented in the table above in two components, a gross $83 million deferred tax benefit partially offset by a $62 million valuation allowance charge. The net deferred benefit of $21 million is the best estimate of the deferred tax benefit arising from Swiss Tax Reform. Swiss Tax Reform benefits were partially offset by certain deemed income inclusions in the U.S.and a deferred income tax charge for establishing valuation allowances against the net deferred tax assets of certain Belgian operations. The income tax provision for the fiscal year ended June 30, 2021 was higher than the income tax provision for the fiscal year ended June 30, 2020 due to the sale of the Blow-Fill-Seal Business and an increase in state taxes, offset by an increase in foreign tax credits due to amended prior year returns, as well as a reduction in the foreign valuation allowance. The Company intends to repatriate foreign earnings taxed in prior fiscal years as a result of the changes imposed by the 2017 U.S. Tax Cuts and Jobs Act. In addition to these foreign earnings previously taxed, as of June 30, 2022, for purposes of ASC 740-10-25-3, the Company had $241 million of undistributed earnings from non-U.S. subsidiaries that it intends to reinvest permanently in its non-U.S. operations. As these ASC 740-10-25-3 earnings are considered permanently reinvested, no tax provision has been accrued. It is not feasible to estimate the amount of tax that might be payable on the eventual remittance of such earnings. 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 230 187 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 $ 369 $ 356 Valuation allowance (149) (65) Net deferred income tax assets $ 220 $ 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 $ (148) $ (98) 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 (197) (164) Net deferred tax liability $ (148) $ (98) At June 30, 2022, the Company had federal net operating loss ( “ NOL ” ) carryforwards of $532 million, $211 million of which are subject to limitations under Section 382 of the Internal Revenue Code of 1986, as amended (the “ Internal Revenue Code ” ). The majority of the $211 million federal NOL carryforwards subject to Section 382 of the Internal Revenue Code are attributed to the Company's acquisitions of Pharmatek Laboratories, Inc., Juniper Pharmaceuticals, Inc., Paragon Bioservices, Inc., and MastherCell Global Inc. (“MaSTherCell”). As of June 30, 2022, $461 million of the Company's federal NOL carryforwards have an indefinite life and the remaining NOL carryforwards will expire in fiscal years 2023 through 2037. At June 30, 2022, the Company had state tax NOL carryforwards of $431 million. Substantially all state NOL carryforwards have a twenty-year carryforward period. At June 30, 2022, the Company had non-U.S. tax NOL carryforwards of $240 million, a majority of which are available for at least three years or have an indefinite carryforward period. The Company had valuation allowances of $149 million and $65 million as of June 30, 2022 and 2021, respectively, against its deferred tax assets. The Company considered all available evidence, both positive and negative, in assessing the need for a valuation allowance against tax assets. Four possible sources of taxable income were evaluated when assessing the realizability of deferred tax assets: • carrybacks of existing NOLs (if and to the extent permitted under the tax law); • future reversals of existing taxable temporary differences; • tax planning strategies; and • future taxable income exclusive of reversing temporary differences and carryforwards. While the valuation allowance related to certain U.S. combined states was released during the fiscal year ended June 30, 2019, there remained as of June 30, 2022 a valuation allowance for the NOLs and deductible temporary differences in the remaining combined and separate states of $37 million. The state valuation allowance as of June 30, 2022 is due to the Company’s history of tax losses and anticipated loss utilization rates in separate filing status states as well as the difference in the rules related to allocated and apportioned income for separate filing status states versus combined filing status states. The Company considered the need to maintain a valuation allowance on deferred tax assets based on management’s assessment of whether it is more likely than not that the Company would realize the value of its deferred tax assets based on future reversals of existing taxable temporary differences and the ability to generate sufficient taxable income within the carryforward period available under the applicable tax laws. During the fiscal year ended June 30, 2022, the Company established valuation allowances on NOLs and temporary differences related to certain Belgian operations in the aggregate amount of $26 million. In addition, the Company established valuation allowances on temporary differences related to intangibles in Switzerland in the amount of $62 million. In the normal course of business, the Company's income taxes are subject to audits by federal, state, and foreign tax authorities, some of which are ongoing and may result in proposed assessments. Germany and the U.K. are among the jurisdictions where the Company has substantial tax positions. The Company is no longer subject to examinations by the relevant tax authorities for years prior to fiscal 2009. The Company’s estimate for the potential outcome for any uncertain tax issue is highly judgmental. The Company assesses its income tax positions and records benefits for all years subject to examination based upon management’s evaluation of the facts, circumstances, and information available at the reporting date. For those tax positions for which it is more likely than not that a tax benefit will be sustained, the Company records the amount that has a greater than 50% likelihood of being realized upon resolution with the taxing authority that has full knowledge of all relevant information based on the technical merit. Interest and penalties are accrued, where applicable. As of June 30, 2022, the Company had a total of $5 million of unrecognized tax benefits. 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 All of the unrecognized tax benefits as of June 30, 2022 and 2021 would, if subsequently recognized, favorably affect the effective income tax rate. The Company recognizes interest and penalties related to uncertain tax positions in income tax expense. As of June 30, 2022, the Company has $1 million of accrued interest related to uncertain tax positions, with a reduction from the prior year, as a result of statute of limitations lapses and settlements. The Company had $1 million of accrued interest related to uncertain tax positions as of both June 30, 2021 and 2020. |
Retirement Benefits [Text Block] | 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 |
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. |
Employee Retirement Benefit Pla
Employee Retirement Benefit Plans | 12 Months Ended |
Jun. 30, 2022 | |
Retirement Benefits [Abstract] | |
Retirement Benefits [Text Block] | 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 |
Accounting Changes and Error _2
Accounting Changes and Error Corrections (Policies) | 12 Months Ended |
Jun. 30, 2022 | |
Accounting Changes and Error Corrections [Abstract] | |
Revenue from Contract with Customer | REVENUE RECOGNITION The Company recognizes revenue in accordance with ASC 606, Revenue from Contracts with Customers . The Company generally earns its revenue by supplying goods or providing services under contracts with its customers in three primary revenue streams: manufacturing and commercial product supply, development services, and clinical supply services. The Company measures the revenue from customers based on the consideration specified in its contracts, excluding any sales incentive or amount collected on behalf of a third party that the Company expects to be entitled in exchange for transferring the promised goods to and/or performing services for the customer (the “Transaction Price”). To the extent the Transaction Price includes variable consideration, the Company estimates the amount of variable consideration that should be included in the Transaction Price utilizing either the expected value method or the most likely amount method depending on which method is expected to better predict the amount of consideration to which the Company will be entitled. The value of variable consideration is included in the Transaction Price if, and to the extent, it is probable that a significant reversal of the amount of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved. These estimates are re-assessed each reporting period, as required, and any adjustments required are recorded on a cumulative catch-up basis, which affects revenue and net income in the period of adjustment. The Company’s customer contracts generally include provisions entitling the Company to a termination penalty when the customer terminates prior to the contract’s nominal end date. The termination penalties in the customer contracts vary but are generally considered substantive for accounting purposes and create enforceable rights and obligations throughout the stated duration of the contract. The Company accounts for a contract termination as a contract modification in the period in which the customer gives notice of termination. The determination of the contract termination penalty is based on the terms stated in the relevant customer agreement. As of the modification date, the Company updates its estimate of the Transaction Price using the expected value method, subject to constraints, and to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved. These estimates are re-assessed each reporting period, as required, and any adjustments required are recorded on a cumulative catch-up basis, which would affect revenue and net income in the period of adjustment . The Company generally expenses sales commissions as incurred because either the amortization period is one year or less, or the balance with an amortization period greater than one year is not material. Manufacturing & Commercial Product Supply Revenue Manufacturing and commercial product supply revenue consists of revenue earned by manufacturing products supplied to customers under long-term commercial supply arrangements. In these arrangements, the customer typically owns and supplies the active pharmaceutical ingredient, (“API”) or other proprietary materials which are used in the manufacturing process. The contract generally includes the terms of the manufacturing services and related product quality assurance procedures to comply with regulatory requirements. Due to the regulated nature of the Company’s business, these contract terms are highly interdependent and, therefore, are considered to be a single combined performance obligation. The transaction price is generally stated in the agreement as a fixed price per unit, with no contractual provision for a refund or price concession. In most circumstances, control is transferred to the customer over time, creating a corresponding right to recognize the related revenue, because there is no alternative use to the Company for the asset created and the Company has an enforceable right to payment for performance completed as of that date. The selection of the method for measuring progress towards the completion of the Company’s performance obligation requires judgment and is based on the nature of the products to be manufactured and supplied to the customer. For the majority of the Company’s arrangements, progress is measured based on the units of product that have successfully completed the contractually-required product quality assurance process, because the conclusion of that process defines the time when the applicable contract and the related regulatory requirements permit the customer to exercise control over the product’s disposition. The customer is typically responsible for arranging the shipping and handling of product following completion of the quality assurance process. Payment is typically due 30 to 45 days after the goods are delivered as requested by the customer, based on the payment terms set forth in the applicable customer agreement. Development Services and Clinical Supply Revenue Development services and clinical supply contracts generally take the form of short-term, fee-for-service arrangements. Performance obligations vary, but frequently include biologic cell-line development, performing formulation, analytical stability, or other services related to product development, and providing manufacturing services for products that are under development or otherwise not intended for commercial sale. They can also include a combination of the following services: the manufacturing, packaging, storage, distribution, destruction, and inventory management of customer clinical trial material, as well as the sourcing of comparator drug products on behalf of customers to be used in clinical trials to compare performance with the drug under clinical investigation. The transaction prices for these arrangements are fixed and include amounts stated in the contracts for each promised service. Each service is generally considered to be a separate performance obligation. In most instances, the Company recognizes revenue over time because there is no alternative use to the Company for the asset created and the Company has an enforceable right to payment for performance completed as of that date. The Company measures progress toward the completion of its performance obligations satisfied over time based on the nature of the services to be performed. For certain types of arrangements, revenue is recognized over time and measured using an output method based on the completion of tasks and activities that are performed to satisfy a performance obligation. For certain types of arrangements, revenue is recognized over time and measured using an input method based on effort expended. Each of these methods provides an appropriate depiction of the Company’s progress toward fulfilling its performance obligations for its respective arrangement. In certain development services arrangements that require a portion of the contract consideration to be received in advance at the commencement of the contract, such advance payment is initially recorded as a contract liability. In certain clinical supply arrangements, revenue is recognized at the point in time when control transfers, which occurs upon either the delivery of the related output of the service to the customer or the completion of quality testing with respect to the product, and the Company has an enforceable right to payment based on the terms of the arrangement. The Company allocates consideration to each performance obligation using the “relative standalone selling price” as defined under ASC 606. Generally, the Company utilizes observable standalone selling prices in its allocations of consideration. If observable standalone selling prices are not available, the Company estimates the applicable standalone selling price using a cost-plus-margin approach or an adjusted market assessment approach, in each case, representing the amount that the Company believes the market is willing to pay for the applicable service. Payment is typically due 30 to 45 days following the completion of services provided to the customer, based on the payment terms set forth in the applicable customer agreement. The Company records revenue for comparator sourcing arrangements on a net basis because it is acting as an agent that does not control the product or service before it is transferred to the customer. Payment for comparator sourcing activity is typically received in advance at the commencement of the contract and is initially recorded as a contract liability. The Company generally expenses sales commissions as incurred because either the amortization period is one year or less, or the balance with an amortization period greater than one year is not material. Contract Liabilities Contract liabilities relate to cash consideration that the Company receives in advance of satisfying the related performance obligations. 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 $ 220 Revenue recognized in the period from amounts included in contracts liability at the beginning of the period: $ (272) Contract liabilities that will be recognized within 12 months of June 30, 2022 are accounted for in Other accrued liabilities and those that will be recognized longer than 12 months after June 30, 2022 are accounted for within Other liabilities. Contract Assets Contract assets primarily relate to the Company's conditional right to receive consideration for development services that have been performed for a customer as of June 30, 2022 but had not yet been invoiced as of June 30, 2022. Contract assets are transferred to trade receivables, net when the Company’s right to receive the consideration becomes unconditional. Contract assets totaled $441 million and $181 million as of June 30, 2022 and 2021, respectively. Contract assets expected to transfer to trade receivables within 12 months are accounted for within Prepaid expenses and other. Contract assets expected to transfer to trade receivables longer than 12 months are accounted for within Other long-term assets. As of June 30, 2022, the Company's aggregate contract asset balance was $441 million, an increase of $260 million compared to June 30, 2021. The majority of this increase is related to large development programs in the Biologics segment, such as manufacturing and development services for COVID-19 vaccines, where revenue is recorded over time and the ability to invoice customers is dictated by contractual terms. As of June 30, 2022, there were no reserves recorded against the Company's aggregate contract asset balance. As discussed in Note 2, Basis of Presentation and Summary of Significant Accounting Policies , effective July 1, 2022, in connection with the appointment of a new President and Chief Executive Officer, the Company changed its operating structure and reorganized its executive leadership team accordingly. This new organizational structure includes simplifying the four operating and reportable segments the Company disclosed during fiscal 2022 to two: (i) Biologics and (ii) Pharma and Consumer Health. The disaggregated revenue disclosures below have been reclassified to conform to the Company’s current segment structure. Fiscal Year Ended June 30, 2022 Biologics Pharma and Consumer Health Total Manufacturing & commercial product supply $ 608 $ 1,474 $ 2,082 Development services and clinical supply 1,926 797 2,723 Total $ 2,534 $ 2,271 $ 4,805 Inter-segment revenue elimination (3) Combined net revenue $ 4,802 Fiscal Year Ended June 30, 2021 Biologics Pharma and Consumer Health Total Manufacturing & commercial product supply $ 532 $ 1,321 $ 1,853 Development services and clinical supply 1,406 742 2,148 Total $ 1,938 $ 2,063 $ 4,001 Inter-segment revenue elimination (3) Combined net revenue $ 3,998 Fiscal Year Ended June 30, 2020 Biologics Pharma and Consumer Health Total Manufacturing & commercial product supply $ 332 $ 1,403 $ 1,735 Development services and clinical supply 700 660 1,360 Total $ 1,032 $ 2,063 $ 3,095 Inter-segment revenue elimination (1) Combined net revenue $ 3,094 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 $ 3,084 $ 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 $ 4,802 $ 3,998 $ 3,094 |
Comprehensive Text Block List (
Comprehensive Text Block List (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Text Block [Abstract] | |||
Disposal Group, Not Discontinued Operation, Gain (Loss) on Disposal | $ 1 | $ 182 | $ (1) |
Debt and Lease Obligation | $ 4,202 | $ 3,241 |
Accounting Changes and Error _3
Accounting Changes and Error Corrections (Details) | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||||||||||
Aug. 09, 2022 USD ($) | Nov. 18, 2021 USD ($) shares | Aug. 01, 2021 USD ($) | Feb. 23, 2021 USD ($) | Feb. 11, 2021 USD ($) | Nov. 23, 2020 USD ($) shares | Nov. 16, 2020 USD ($) | Jun. 15, 2020 USD ($) $ / shares shares | Feb. 06, 2020 USD ($) $ / shares shares | Apr. 30, 2022 USD ($) | Oct. 31, 2021 USD ($) | Oct. 23, 2017 USD ($) | Jun. 30, 2022 USD ($) $ / shares shares | Mar. 31, 2022 USD ($) | Jun. 30, 2020 USD ($) $ / shares shares | Mar. 31, 2022 USD ($) | Jun. 30, 2022 USD ($) employees $ / shares shares | Jun. 30, 2021 USD ($) $ / shares shares | Jun. 30, 2020 USD ($) $ / shares shares | Oct. 01, 2021 USD ($) | Mar. 31, 2021 USD ($) | Feb. 28, 2021 USD ($) | May 17, 2019 USD ($) | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||||||||||||||
Assets, Current | $ 2,917,000,000 | $ 2,917,000,000 | $ 2,918,000,000 | ||||||||||||||||||||
Assets | 10,508,000,000 | 10,508,000,000 | 9,112,000,000 | ||||||||||||||||||||
Other Accrued Liabilities | 646,000,000 | 646,000,000 | |||||||||||||||||||||
Liabilities, Current | 1,098,000,000 | 1,098,000,000 | 1,196,000,000 | ||||||||||||||||||||
Deferred Tax Liabilities, Tax Deferred Income | 197,000,000 | 197,000,000 | 164,000,000 | ||||||||||||||||||||
Deferred Tax Liabilities, Gross | 368,000,000 | 368,000,000 | 389,000,000 | ||||||||||||||||||||
Liabilities | 5,733,000,000 | 5,733,000,000 | 4,838,000,000 | ||||||||||||||||||||
Retained Earnings (Accumulated Deficit) | 518,000,000 | 518,000,000 | 25,000,000 | ||||||||||||||||||||
Equity, Attributable to Parent | 4,775,000,000 | 4,775,000,000 | 3,915,000,000 | ||||||||||||||||||||
Liabilities and Equity | 10,508,000,000 | 10,508,000,000 | 9,112,000,000 | ||||||||||||||||||||
Revenues | 1,287,000,000 | $ 3,094,000,000 | 4,802,000,000 | 3,998,000,000 | $ 3,094,000,000 | ||||||||||||||||||
Cost of Goods and Services Sold | 3,188,000,000 | 2,646,000,000 | 2,111,000,000 | ||||||||||||||||||||
Gross Profit | 462,000,000 | 1,614,000,000 | 1,352,000,000 | 983,000,000 | |||||||||||||||||||
Operating Income (Loss) | 220,000,000 | 730,000,000 | 828,000,000 | 394,000,000 | |||||||||||||||||||
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | 185,000,000 | 579,000,000 | 715,000,000 | 260,000,000 | |||||||||||||||||||
Income Tax Expense (Benefit) | 17,000,000 | 80,000,000 | 130,000,000 | 39,000,000 | |||||||||||||||||||
Net Income (Loss) Attributable to Parent | 168,000,000 | 499,000,000 | 585,000,000 | 221,000,000 | |||||||||||||||||||
Net Income (Loss) Available to Common Stockholders, Basic | $ 168,000,000 | $ 483,000,000 | $ 529,000,000 | $ 173,000,000 | |||||||||||||||||||
Earnings Per Share, Basic | $ / shares | $ 0.94 | $ 2.74 | $ 3.15 | $ 1.16 | |||||||||||||||||||
Earnings Per Share, Diluted | $ / shares | 0.93 | $ 2.73 | $ 3.11 | $ 1.14 | |||||||||||||||||||
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest | $ 422,000,000 | $ 654,000,000 | $ 189,000,000 | ||||||||||||||||||||
Increase (Decrease) in Deferred Income Taxes | (9,000,000) | (64,000,000) | (2,000,000) | ||||||||||||||||||||
Increase (Decrease) in Other Operating Assets and Liabilities, Net | $ (423,000,000) | (36,000,000) | 33,000,000 | ||||||||||||||||||||
Common Stock, Par or Stated Value Per Share | $ / shares | $ 0.01 | $ 0.01 | |||||||||||||||||||||
Depreciation | $ 255,000,000 | 196,000,000 | 165,000,000 | ||||||||||||||||||||
Interest Costs Capitalized | 15,000,000 | 17,000,000 | 11,000,000 | ||||||||||||||||||||
Gain (Loss) on Sale of Assets and Asset Impairment Charges | 31,000,000 | 9,000,000 | 5,000,000 | ||||||||||||||||||||
Research and Development Expense | 23,000,000 | 21,000,000 | 21,000,000 | ||||||||||||||||||||
Contract With Customer, Asset | $ 441 | 441 | 181,000,000 | ||||||||||||||||||||
Increase (Decrease) in Contract with Customer, Asset | 260 | ||||||||||||||||||||||
Goodwill, Acquired During Period | 572,000,000 | 56,000,000 | |||||||||||||||||||||
Payments to Acquire Businesses, Net of Cash Acquired | 1,199,000,000 | 147,000,000 | 379,000,000 | ||||||||||||||||||||
Disposal Group, Not Discontinued Operation, Gain (Loss) on Disposal | $ 1,000,000 | 182,000,000 | (1,000,000) | ||||||||||||||||||||
Notes Receivable Interest Rate | 5% | 5% | |||||||||||||||||||||
Business Combination, Loan Discount | $ 3,000,000 | ||||||||||||||||||||||
Amortization of Intangible Assets | 123,000,000 | 93,000,000 | 89,000,000 | ||||||||||||||||||||
Restructuring, Settlement and Impairment Provisions | 10,000,000 | 10,000,000 | 6,000,000 | ||||||||||||||||||||
Debt and Lease Obligation | $ 4,202,000,000 | $ 4,202,000,000 | 3,241,000,000 | ||||||||||||||||||||
Debt Instrument Quarterly Amortization Rate | 0.25% | 0.25% | |||||||||||||||||||||
Debt Instrument, Unused Borrowing Capacity, Amount | 721,000,000 | 721,000,000 | |||||||||||||||||||||
Letters of Credit Outstanding, Amount | $ 4,000,000 | $ 4,000,000 | |||||||||||||||||||||
Payments to Acquire Businesses, Gross | $ 950,000,000 | ||||||||||||||||||||||
Installment Payment for Acquisition | 50,000,000 | 50,000,000 | |||||||||||||||||||||
Unamortized Debt Issuance Expense | 42,000,000 | 42,000,000 | 39,000,000 | ||||||||||||||||||||
Amortization of Debt Issuance Costs | 7,000,000 | 6,000,000 | |||||||||||||||||||||
Conversion of Stock, Shares Converted | shares | 384,777 | 265,223 | |||||||||||||||||||||
Dividends, Preferred Stock, Stock | $ 2 | $ 2,000,000 | |||||||||||||||||||||
Stock Issued During Period, Shares, Conversion of Convertible Securities | shares | 7,817,554 | 5,392,280 | |||||||||||||||||||||
Convertible Preferred Stock, Shares Issued upon Conversion | shares | 20.32 | 20.33 | |||||||||||||||||||||
OCI, Debt Securities, Available-for-Sale, Unrealized Holding Gain (Loss), before Adjustment, after Tax | 127,000,000 | ||||||||||||||||||||||
Proceeds from Issuance of Redeemable Preferred Stock | 646,000,000 | ||||||||||||||||||||||
Payments of Stock Issuance Costs | 4,000,000 | ||||||||||||||||||||||
Embedded Derivative, Fair Value of Embedded Derivative Liability | $ 9,000,000 | 0 | 0 | ||||||||||||||||||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Purchases, Sales, Issues, Settlements | 4,000,000 | $ 1 | 1,000,000 | ||||||||||||||||||||
Cash Paid to Settle, Interest Rate Swap Agreement | 2,000,000 | 2,000,000 | |||||||||||||||||||||
Total Debt, U.S Denominated Term Loan | 500,000,000 | 500,000,000 | |||||||||||||||||||||
Effective Tax Reconciliation, Gross Benefit from Swiss Tax Reform | (83,000,000) | 0 | 0 | ||||||||||||||||||||
Effective Tax Reconciliation, Deferred Tax Valuation Allowance from Swiss Tax Reform | 62 | ||||||||||||||||||||||
Undistributed Earnings of Foreign Subsidiaries | 241,000,000 | 241,000,000 | |||||||||||||||||||||
Deferred Tax Assets, Net of Valuation Allowance | 220,000,000 | 220,000,000 | 291,000,000 | ||||||||||||||||||||
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount | 26 | ||||||||||||||||||||||
Unrecognized Tax Benefits, Interest on Income Taxes Accrued | 1,000,000 | 1,000,000 | |||||||||||||||||||||
Multiemployer Plans, Estimated Annual Cash Contribution | $ 2,000,000 | $ 2,000,000 | |||||||||||||||||||||
Common Stock, Shares Authorized | shares | 1,000,000,000 | 1,000,000,000 | |||||||||||||||||||||
Preferred Stock, Value, Issued | $ 100,000,000 | $ 1,000 | $ 100,000,000 | $ 1,000 | |||||||||||||||||||
Preferred Stock, Par or Stated Value Per Share | $ / shares | $ 0.01 | $ 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 | 1,000,000 | ||||||||||||||||||||||
Stock Issued During Period, Value, Over-allotment Option | $ 82,000,000 | ||||||||||||||||||||||
Preferred Stock, Shares Issued | shares | 650,000 | 650,000 | |||||||||||||||||||||
Preferred Stock, Issuance Value, Net | $ 646,000,000 | $ 646,000,000 | |||||||||||||||||||||
Embedded Derivative, Estimate of Embedded Derivative Liability | $ 40,000,000 | ||||||||||||||||||||||
Stock Issued During Period, Value, Conversion of Convertible Securities | $ 362,000,000 | 253,000,000 | |||||||||||||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Number of Additional Shares Authorized | shares | 15,600,000 | ||||||||||||||||||||||
Share-Based Payment Arrangement, Expensed and Capitalized, Amount | $ 54,000,000 | 51,000,000 | $ 48,000,000 | ||||||||||||||||||||
Deferred Debt Issuance Cost, Writeoff | 4,000,000 | 6,000,000 | |||||||||||||||||||||
Gain (Loss) on Extinguishment of Debt | 3,000,000 | ||||||||||||||||||||||
Early Repayment of Senior Debt | 11,000,000 | 10,000,000 | |||||||||||||||||||||
Derivative, Gain (Loss) on Derivative, Net | 2,000,000 | $ 17,000,000 | $ 3,000,000 | ||||||||||||||||||||
Short-Term Lease Costs | $ 8,000,000 | ||||||||||||||||||||||
Stock Option Granted Contractual Term | 10 years | ||||||||||||||||||||||
Business Combination, Price of Acquisition, Expected | $ 475 | ||||||||||||||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Option, Nonvested, Weighted Average Exercise Price | $ / shares | $ 32.07 | $ 15.22 | $ 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 | |||||||||||||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Vested in Period, Fair Value | 6,000,000 | 7,000,000 | |||||||||||||||||||||
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount | $ 2,000,000 | $ 2,000,000 | |||||||||||||||||||||
Share-Based Payment Arrangement, Nonvested Award, 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 | |||||||||||||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period | shares | 535,000 | 502,000 | |||||||||||||||||||||
Prepaid Expense and Other Assets, Current | 626,000,000 | $ 626,000,000 | $ 376,000,000 | ||||||||||||||||||||
Preferred Stock, Issuance Value | $ 650,000,000 | $ 650,000,000 | |||||||||||||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Number of Shares, Period Increase (Decrease) | shares | 2.25 | ||||||||||||||||||||||
Effective Tax Reconciliation, Net Benefit from Swiss Tax Reform | $ 21 | ||||||||||||||||||||||
Stock Compensation Plan - Omnibus [Member] | |||||||||||||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||||||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Vested, Number of Shares | shares | 183,000 | 231,000 | 329,000 | ||||||||||||||||||||
Additional Paid-in Capital [Member] | |||||||||||||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||||||||||||||
Stock Issued During Period, Value, New Issues | $ 82,000,000 | $ 1,042,000,000 | |||||||||||||||||||||
Stock Issued During Period, Value, Conversion of Convertible Securities | $ 253,000,000 | $ 362 | $ 362,000,000 | 253,000,000 | |||||||||||||||||||
Designated shares | |||||||||||||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||||||||||||||
Preferred Stock, Shares Authorized | shares | 1,000,000 | 1,000,000 | |||||||||||||||||||||
Restricted Stock Units (RSUs) [Member] | |||||||||||||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||||||||||||||
Share-Based Payment Arrangement, Nonvested Award, 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 Payment Arrangement, Nonvested Award, Excluding Option, Cost Not yet Recognized, Amount | 57,000,000 | 57,000,000 | |||||||||||||||||||||
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 | ||||||||||||||||||||
Retirement Benefits [Member] | |||||||||||||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||||||||||||||
Multiemployer Plan, Pension, Significant, Future Employer Contribution, Amount | 38,000,000 | ||||||||||||||||||||||
Foreign, Net Operating Loss Established | |||||||||||||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||||||||||||||
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount | 62 | ||||||||||||||||||||||
Domestic Tax Authority | |||||||||||||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||||||||||||||
Operating Loss Carryforwards | 532,000,000 | 532,000,000 | |||||||||||||||||||||
Operating Loss Carryforwards, Subject to Limitations, Section 382 | 211,000,000 | 211,000,000 | |||||||||||||||||||||
Operating Loss Carryforwards, Indefinite Life | 461,000,000 | 461,000,000 | |||||||||||||||||||||
State and Local Jurisdiction | |||||||||||||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||||||||||||||
Operating Loss Carryforwards | 431,000,000 | 431,000,000 | |||||||||||||||||||||
Deferred Tax Assets, Net of Valuation Allowance | 37,000,000 | 37,000,000 | |||||||||||||||||||||
Foreign Tax Authority | |||||||||||||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||||||||||||||
Operating Loss Carryforwards | 240,000,000 | $ 240,000,000 | |||||||||||||||||||||
Senior Secured Credit Facility | |||||||||||||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||||||||||||||
Pledge Percentage Of Capital Stock | 100% | ||||||||||||||||||||||
Pledge Percentage Of Equity Interest | 100% | ||||||||||||||||||||||
Maximum Percentage Of Voting Stock | 65% | ||||||||||||||||||||||
Accrued Liabilities | |||||||||||||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||||||||||||||
Payments to Acquire Businesses, Gross | $ 200,000,000 | ||||||||||||||||||||||
Reported Value Measurement | |||||||||||||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||||||||||||||
Debt and Lease Obligation | 4,202,000,000 | $ 4,202,000,000 | 3,241,000,000 | ||||||||||||||||||||
Debt Instrument, Fair Value Disclosure | $ 4,243,000,000 | 4,243,000,000 | 3,277,000,000 | ||||||||||||||||||||
Bolton | |||||||||||||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||||||||||||||
Restructuring, Settlement and Impairment Provisions | $ 3,000,000 | ||||||||||||||||||||||
3.500% Senior US Denominated Notes Member | |||||||||||||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 350% | 350% | |||||||||||||||||||||
Term Loan Two Facility Dollar Denominated | |||||||||||||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||||||||||||||
Debt and Lease Obligation | $ 450,000,000 | ||||||||||||||||||||||
Term Loan Three Facility Dollar Denominated | |||||||||||||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||||||||||||||
Debt and Lease Obligation | $ 1,433,000,000 | $ 1,433,000,000 | 997,000,000 | ||||||||||||||||||||
Term Loan Three Facility Dollar Denominated | London Interbank Offered Rate (LIBOR) | |||||||||||||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 2% | ||||||||||||||||||||||
Revolving Credit Facility | London Interbank Offered Rate (LIBOR) | |||||||||||||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 2.25% | ||||||||||||||||||||||
U.S Dollar-denominated 5.00% Senior Notes | |||||||||||||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 5% | 5% | |||||||||||||||||||||
Debt and Lease Obligation | $ 500,000,000 | $ 500,000,000 | |||||||||||||||||||||
U.S Dollar-denominated 5.00% Senior Notes | Level 2 [Member] | Reported Value Measurement | |||||||||||||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||||||||||||||
Debt Instrument, Fair Value Disclosure | $ 500,000,000 | $ 500,000,000 | 500,000,000 | ||||||||||||||||||||
2.375% Senior Euro Denominated Notes | |||||||||||||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 2.375% | 2.375% | |||||||||||||||||||||
Debt and Lease Obligation | $ 825,000,000 | $ 825,000,000 | |||||||||||||||||||||
2.375% Senior Euro Denominated Notes | Level 2 [Member] | Reported Value Measurement | |||||||||||||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||||||||||||||
Debt Instrument, Fair Value Disclosure | $ 874,000,000 | $ 874,000,000 | 984,000,000 | ||||||||||||||||||||
Four Point Seven Five Percent Senior Euro Denominated Notes | |||||||||||||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 4.75% | 4.75% | |||||||||||||||||||||
3.125% Senior US Denominated Notes | |||||||||||||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 3.125% | 3.125% | |||||||||||||||||||||
3.125% Senior US Denominated Notes | Level 2 [Member] | Reported Value Measurement | |||||||||||||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||||||||||||||
Debt Instrument, Fair Value Disclosure | $ 550,000,000 | $ 550,000,000 | 550,000,000 | ||||||||||||||||||||
U.S. Dollar-denominated 4.875% Senior Notes | |||||||||||||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 4.875% | 4.875% | |||||||||||||||||||||
U.S. Denominated Term Loan | |||||||||||||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||||||||||||||
Debt Instrument, Interest Rate, Effective Percentage | 0.9985% | 0.9985% | |||||||||||||||||||||
Eberbach Pension Promissory Note or Loan | |||||||||||||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 5% | 5% | |||||||||||||||||||||
3.500% Senior US Denominated Notes | |||||||||||||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 350% | 350% | |||||||||||||||||||||
3.500% Senior US Denominated Notes | Level 2 [Member] | Reported Value Measurement | |||||||||||||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||||||||||||||
Debt Instrument, Fair Value Disclosure | $ 650,000,000 | $ 650,000,000 | $ 0 | ||||||||||||||||||||
Skeletal Cell Therapy Support SA | |||||||||||||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||||||||||||||
Business Combination, Consideration Transferred | $ 15,000,000 | ||||||||||||||||||||||
Goodwill, Acquired During Period | $ 9,000,000 | ||||||||||||||||||||||
Acorda Therapeutics, Inc | |||||||||||||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||||||||||||||
Business Combination, Consideration Transferred | $ 83,000,000 | ||||||||||||||||||||||
Goodwill, Acquired During Period | 2,000,000 | ||||||||||||||||||||||
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 | ||||||||||||||||||||||
Delphi Genetics SA | |||||||||||||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||||||||||||||
Business Combination, Consideration Transferred | $ 50,000,000 | ||||||||||||||||||||||
Goodwill, Acquired During Period | 43,000,000 | ||||||||||||||||||||||
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, Current Assets | 3,000,000 | ||||||||||||||||||||||
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, Liabilities | $ 1,000,000 | ||||||||||||||||||||||
Hepatic Cell Therapy Support SA | |||||||||||||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||||||||||||||
Payments to Acquire Businesses, Net of Cash Acquired | $ 15,000,000 | ||||||||||||||||||||||
Asset Acquisition, Recognized Identifiable Assets Acquired and Liabilities Assumed, PPE | $ 13,000,000 | ||||||||||||||||||||||
Asset Acquisition, Recognized Identifiable Assets Acquired and Liabilities Assumed | 3,000,000 | ||||||||||||||||||||||
Asset Acquisition, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Long-term Debt | $ 1,000,000 | ||||||||||||||||||||||
RheinCell Therapeutics | |||||||||||||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||||||||||||||
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 | ||||||||||||||||||||||
Payments to Acquire Businesses, Net of Cash Acquired | 26,000,000 | ||||||||||||||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities | $ 4,000,000 | ||||||||||||||||||||||
Bettera Holdings, LLC | |||||||||||||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||||||||||||||
Goodwill, Acquired During Period | $ 531,000,000 | ||||||||||||||||||||||
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, Finite-Lived Intangibles | 361,000,000 | ||||||||||||||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities | 11,000,000 | ||||||||||||||||||||||
Payments to Acquire Businesses, Net of Cash Acquired | $ 1 | ||||||||||||||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities | 22,000,000 | ||||||||||||||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Other Noncurrent Assets | 12,000,000 | ||||||||||||||||||||||
Bettera Holdings, LLC | Core Technology | |||||||||||||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||||||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 338,000,000 | ||||||||||||||||||||||
Bettera Holdings, LLC | Customer Relationships | |||||||||||||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||||||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $ 23,000,000 | ||||||||||||||||||||||
Vaccine Manufacturing and Innovation Centre | |||||||||||||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||||||||||||||
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 | ||||||||||||||||||||||
Payments to Acquire Businesses, Net of Cash Acquired | 134,000,000 | ||||||||||||||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities | 18,000,000 | ||||||||||||||||||||||
Business Acquisition, Transaction Costs | 9,000,000 | ||||||||||||||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Other | 14,000,000 | ||||||||||||||||||||||
Princeton Cell Therapy | |||||||||||||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||||||||||||||
Goodwill, Acquired During Period | 24,000,000 | ||||||||||||||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment | 22,000,000 | ||||||||||||||||||||||
Payments to Acquire Businesses, Net of Cash Acquired | 45,000,000 | ||||||||||||||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities | 1,000,000 | ||||||||||||||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Other | 10,000,000 | ||||||||||||||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Other Noncurrent Assets | $ 10,000,000 | ||||||||||||||||||||||
Blow-Fill-Seal Business, Woodstock | |||||||||||||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||||||||||||||
Goodwill, Acquired During Period | 54,000,000 | ||||||||||||||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities | 2,000,000 | 2,000,000 | |||||||||||||||||||||
Business Acquisition, Transaction Costs | 8,000,000 | 8,000,000 | |||||||||||||||||||||
Proceeds from Divestiture of Businesses and Interests in Affiliates | 300,000,000 | ||||||||||||||||||||||
Business Combination, Acquired Receivables, Gross Contractual Amount | 50,000,000 | 50,000,000 | |||||||||||||||||||||
Business Combination, Acquired Receivable, Fair Value | 47,000,000 | 47,000,000 | |||||||||||||||||||||
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High | 50,000,000 | 50,000,000 | |||||||||||||||||||||
Disposal Group, Including Discontinued Operation, Assets | 149,000,000 | 149,000,000 | |||||||||||||||||||||
Disposal Group, Not Discontinued Operation, Gain (Loss) on Disposal | $ 1 | 182,000,000 | |||||||||||||||||||||
Business Combination, Acquired Receivables, Description | $51 million | ||||||||||||||||||||||
Business Combination, Working Capital Adjustments | $ 6,000,000 | 6,000,000 | |||||||||||||||||||||
Proceeds From Divestiture Of Businesses, Net Cash Proceeds | $ 284,000,000 | ||||||||||||||||||||||
Minimum | Term Loan Three Facility Dollar Denominated | London Interbank Offered Rate (LIBOR) | |||||||||||||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 0.50% | ||||||||||||||||||||||
Minimum | Revolving Credit Facility | London Interbank Offered Rate (LIBOR) | |||||||||||||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 2% | ||||||||||||||||||||||
Minimum | Building And Improvements | |||||||||||||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||||||||||||||
Property, Plant and Equipment, Useful Life | 5 years | 5 years | |||||||||||||||||||||
Minimum | Machinery and Equipment | |||||||||||||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||||||||||||||
Property, Plant and Equipment, Useful Life | 3 years | 3 years | |||||||||||||||||||||
Minimum | Furniture and Fixtures | |||||||||||||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||||||||||||||
Property, Plant and Equipment, Useful Life | 3 years | 3 years | |||||||||||||||||||||
Maximum | Bolton | |||||||||||||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||||||||||||||
Restructuring and Related Cost, Expected Number of Positions Eliminated | employees | 170 | ||||||||||||||||||||||
Restructuring and Related Cost, Expected Cost | $ 10,000,000 | $ 10,000,000 | |||||||||||||||||||||
Maximum | Term Loan Three Facility Dollar Denominated | |||||||||||||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 0.2506% | ||||||||||||||||||||||
Maximum | Building And Improvements | |||||||||||||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||||||||||||||
Property, Plant and Equipment, Useful Life | 50 years | 50 years | |||||||||||||||||||||
Maximum | Machinery and Equipment | |||||||||||||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||||||||||||||
Property, Plant and Equipment, Useful Life | 10 years | 10 years | |||||||||||||||||||||
Maximum | Furniture and Fixtures | |||||||||||||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||||||||||||||
Property, Plant and Equipment, Useful Life | 7 years | 7 years | |||||||||||||||||||||
Previously Reported | |||||||||||||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||||||||||||||
Assets, Current | $ 2,916,000,000 | $ 2,916,000,000 | |||||||||||||||||||||
Assets | 10,507,000,000 | 10,507,000,000 | |||||||||||||||||||||
Other Accrued Liabilities | 620,000,000 | 620,000,000 | |||||||||||||||||||||
Liabilities, Current | 1,072,000,000 | 1,072,000,000 | |||||||||||||||||||||
Deferred Tax Liabilities, Gross | 202,000,000 | 202,000,000 | |||||||||||||||||||||
Liabilities | 5,712,000,000 | 5,712,000,000 | |||||||||||||||||||||
Retained Earnings (Accumulated Deficit) | 538,000,000 | 538,000,000 | |||||||||||||||||||||
Equity, Attributable to Parent | 4,795,000,000 | 4,795,000,000 | |||||||||||||||||||||
Liabilities and Equity | $ 10,507,000,000 | ||||||||||||||||||||||
Revenues | 1,313,000,000 | 4,828,000,000 | |||||||||||||||||||||
Gross Profit | 488,000,000 | 1,640,000,000 | |||||||||||||||||||||
Operating Income (Loss) | 246,000,000 | 756,000,000 | |||||||||||||||||||||
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | 211,000,000 | 605,000,000 | |||||||||||||||||||||
Income Tax Expense (Benefit) | 23,000,000 | 86,000,000 | |||||||||||||||||||||
Net Income (Loss) Attributable to Parent | 188,000,000 | 519,000,000 | |||||||||||||||||||||
Net Income (Loss) Available to Common Stockholders, Basic | $ 188,000,000 | $ 503,000,000 | |||||||||||||||||||||
Earnings Per Share, Basic | $ / shares | $ 1.04 | $ 2.85 | |||||||||||||||||||||
Earnings Per Share, Diluted | $ / shares | $ 1.04 | $ 2.84 | |||||||||||||||||||||
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest | $ 442,000,000 | ||||||||||||||||||||||
Increase (Decrease) in Deferred Income Taxes | 14,000,000 | ||||||||||||||||||||||
Increase (Decrease) in Other Operating Assets and Liabilities, Net | (448,000,000) | ||||||||||||||||||||||
Prepaid Expense and Other Assets, Current | $ 625,000,000 | 625,000,000 | |||||||||||||||||||||
Revision Adjustments | |||||||||||||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||||||||||||||
Assets, Current | 1,000,000 | 1,000,000 | |||||||||||||||||||||
Assets | 1,000,000 | 1,000,000 | |||||||||||||||||||||
Other Accrued Liabilities | 26,000,000 | 26,000,000 | |||||||||||||||||||||
Liabilities, Current | 26,000,000 | 26,000,000 | |||||||||||||||||||||
Liabilities | 21,000,000 | 21,000,000 | |||||||||||||||||||||
Retained Earnings (Accumulated Deficit) | (20,000,000) | (20,000,000) | |||||||||||||||||||||
Equity, Attributable to Parent | (20,000,000) | (20,000,000) | |||||||||||||||||||||
Liabilities and Equity | $ 1,000,000 | ||||||||||||||||||||||
Revenues | (26,000,000) | (26,000,000) | |||||||||||||||||||||
Gross Profit | (26,000,000) | (26,000,000) | |||||||||||||||||||||
Operating Income (Loss) | (26,000,000) | (26,000,000) | |||||||||||||||||||||
Income Tax Expense (Benefit) | (6,000,000) | (6,000,000) | |||||||||||||||||||||
Net Income (Loss) Attributable to Parent | $ (20,000,000) | (20,000,000) | |||||||||||||||||||||
Net Income (Loss) Available to Common Stockholders, Basic | $ (20,000,000) | ||||||||||||||||||||||
Earnings Per Share, Basic | $ / shares | $ (0.10) | $ (0.11) | |||||||||||||||||||||
Earnings Per Share, Diluted | $ / shares | $ (0.11) | $ (0.11) | |||||||||||||||||||||
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest | $ (20,000,000) | ||||||||||||||||||||||
Increase (Decrease) in Deferred Income Taxes | (5,000,000) | ||||||||||||||||||||||
Increase (Decrease) in Other Operating Assets and Liabilities, Net | 25,000,000 | ||||||||||||||||||||||
Prepaid Expense and Other Assets, Current | $ 1,000,000 | 1,000,000 | |||||||||||||||||||||
Revision of Prior Period, Adjustment | |||||||||||||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||||||||||||||
Deferred Tax Liabilities, Gross | (5,000,000) | (5,000,000) | |||||||||||||||||||||
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | $ (26,000,000) | $ (26,000,000) |
Revenue from Contract with Cust
Revenue from Contract with Customer (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2020 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Contract with Customer, Liability | $ 220,000,000 | $ 220,000,000 | $ 321,000,000 | ||
Contract with Customer, Liability, Revenue Recognized | (272,000,000) | ||||
Contract With Customer, Asset | 441 | 441 | 181,000,000 | ||
Disaggregation of Revenue [Line Items] | |||||
Revenues | $ 1,287,000,000 | $ 3,094,000,000 | 4,802,000,000 | 3,998,000,000 | $ 3,094,000,000 |
Segment Reporting Information Inter Segment Revenue Elimination | (3,000,000) | (3,000,000) | (1,000,000) | ||
UNITED STATES | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 3,084,000,000 | 2,462,000,000 | 1,822,000,000 | ||
Europe | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 1,506,000,000 | 1,343,000,000 | 976,000,000 | ||
International Other | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 327,000,000 | 288,000,000 | 376,000,000 | ||
Biologics | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 2,534,000,000 | 1,938,000,000 | 1,032,000,000 | ||
Softgel and Oral Technologies | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 2,271,000,000 | 2,063,000,000 | 2,063,000,000 | ||
Total Catalent before inter-segment revenue elimination | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 4,805,000,000 | 4,001,000,000 | 3,095,000,000 | ||
Manufacturing & Commercial Product Supply | Biologics | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 608,000,000 | 532,000,000 | 332,000,000 | ||
Manufacturing & Commercial Product Supply | Softgel and Oral Technologies | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 1,403,000,000 | ||||
Manufacturing & Commercial Product Supply | Total Catalent before inter-segment revenue elimination | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 2,082,000,000 | 1,853,000,000 | 1,735,000,000 | ||
Manufacturing & Commercial Product Supply | PharmaConsumerHealth | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 1,474,000,000 | 1,321,000,000 | |||
Development Services | Biologics | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 1,926,000,000 | 1,406,000,000 | 700,000,000 | ||
Development Services | Softgel and Oral Technologies | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 660,000,000 | ||||
Development Services | Total Catalent before inter-segment revenue elimination | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 2,723,000,000 | 2,148,000,000 | $ 1,360,000,000 | ||
Development Services | PharmaConsumerHealth | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | $ 797,000,000 | $ 742,000,000 |
Business Combinations and Asset
Business Combinations and Asset Acquisitions (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2022 | Jun. 30, 2021 | Oct. 01, 2021 | |
Asset Acquisition [Line Items] | ||||
Goodwill, Acquired During Period | $ 572,000,000 | $ 56,000,000 | ||
Bettera Holdings, LLC | ||||
Asset Acquisition [Line Items] | ||||
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 | |||
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, Property, Plant, and Equipment | 72,000,000 | |||
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 | |||
Blow-Fill-Seal Business, Woodstock | ||||
Asset Acquisition [Line Items] | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities | (2,000,000) | |||
Goodwill, Acquired During Period | 54,000,000 | |||
Proceeds from Divestiture of Businesses and Interests in Affiliates | 300,000,000 | |||
Business Combination, Acquired Receivable, Fair Value | 47,000,000 | |||
Business Combination, Contingent Consideration, Asset | 0 | |||
Business Combination, Consideration Transferred, Other | (16,000,000) | |||
Total Catalent before inter-segment revenue elimination | $ 331,000,000 |
Intangible Assets, Goodwill and
Intangible Assets, Goodwill and Other (Details) - USD ($) | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Goodwill [Line Items] | |||
Goodwill | $ 3,006,000,000 | $ 2,519,000,000 | $ 2,471,000,000 |
Goodwill, Acquired During Period | 572,000,000 | 56,000,000 | |
Goodwill, Written off Related to Sale of Business Unit | (54,000,000) | ||
Goodwill, Foreign Currency Translation Gain (Loss) | (85,000,000) | 46,000,000 | |
Biologics | |||
Goodwill [Line Items] | |||
Goodwill | 1,566,000,000 | 1,562,000,000 | 1,494,000,000 |
Goodwill, Acquired During Period | 41,000,000 | 54,000,000 | |
Goodwill, Written off Related to Sale of Business Unit | 0 | ||
Goodwill, Foreign Currency Translation Gain (Loss) | (37,000,000) | 14,000,000 | |
PharmaConsumerHealth | |||
Goodwill [Line Items] | |||
Goodwill | 1,440,000,000 | 957,000,000 | $ 977,000,000 |
Goodwill, Acquired During Period | 531,000,000 | 2,000,000 | |
Goodwill, Written off Related to Sale of Business Unit | 54,000,000 | ||
Goodwill, Foreign Currency Translation Gain (Loss) | $ (48,000,000) | $ 32,000,000 |
Intangible Assets, Goodwill a_2
Intangible Assets, Goodwill and Other (Details) - USD ($) | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Indefinite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | $ 1,763,000,000 | $ 1,462,000,000 |
Finite-Lived Intangible Assets, Accumulated Amortization | (703,000,000) | (645,000,000) |
Finite-Lived Intangible Assets, Net | 1,060,000,000 | 817,000,000 |
Finite-Lived Intangible Asset, Expected Amortization, Year One | 132,000,000 | |
Finite-Lived Intangible Asset, Expected Amortization, Year Two | 131,000,000 | |
Finite-Lived Intangible Asset, Expected Amortization, Year Three | 129,000,000 | |
Finite-Lived Intangible Asset, Expected Amortization, Year Four | 121,000,000 | |
Finite-Lived Intangible Asset, Expected Amortization, Year Five | 105,000,000 | |
Finite-Lived Intangible Asset, Expected Amortization, after Year Five | 442,000,000 | |
Finite-Lived Intangible Asset, Expected Amortization. Total | 1,060,000,000 | |
Core Technology | ||
Indefinite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 480,000,000 | 140,000,000 |
Finite-Lived Intangible Assets, Accumulated Amortization | (121,000,000) | (94,000,000) |
Finite-Lived Intangible Assets, Net | $ 359,000,000 | $ 46,000,000 |
Acquired Finite-Lived Intangible Assets, Weighted Average Useful Life | 11 years | 19 years |
Customer Relationships | ||
Indefinite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | $ 1,020,000,000 | $ 1,024,000,000 |
Finite-Lived Intangible Assets, Accumulated Amortization | (366,000,000) | (306,000,000) |
Finite-Lived Intangible Assets, Net | $ 654,000,000 | $ 718,000,000 |
Acquired Finite-Lived Intangible Assets, Weighted Average Useful Life | 13 years | 14 years |
Product Relationships | ||
Indefinite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | $ 239,000,000 | $ 281,000,000 |
Finite-Lived Intangible Assets, Accumulated Amortization | (204,000,000) | (237,000,000) |
Finite-Lived Intangible Assets, Net | $ 35,000,000 | $ 44,000,000 |
Acquired Finite-Lived Intangible Assets, Weighted Average Useful Life | 8 years | 11 years |
Other Intangible Assets | ||
Indefinite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | $ 24,000,000 | $ 17,000,000 |
Finite-Lived Intangible Assets, Accumulated Amortization | (12,000,000) | (8,000,000) |
Finite-Lived Intangible Assets, Net | $ 12,000,000 | $ 9,000,000 |
Acquired Finite-Lived Intangible Assets, Weighted Average Useful Life | 4 years | 5 years |
Restructuring and Related Activ
Restructuring and Related Activities (Details) - USD ($) | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Restructuring Cost and Reserve [Line Items] | |||
Severance Costs | $ 9,000,000 | $ 8,000,000 | $ 6,000,000 |
Business Exit Costs | 1,000,000 | 2,000,000 | 0 |
Restructuring, Settlement and Impairment Provisions | $ 10,000,000 | $ 10,000,000 | $ 6,000,000 |
Debt (Details)
Debt (Details) - USD ($) | Jun. 30, 2022 | Jun. 30, 2021 |
Debt Instrument, Redemption [Line Items] | ||
Debt and Lease Obligation | $ 4,202,000,000 | $ 3,241,000,000 |
Debt, Current | 31,000,000 | 75,000,000 |
Long-Term Debt and Lease Obligation | 4,171,000,000 | 3,166,000,000 |
Long-Term Debt and Capital Lease Obligations, Repayments of Principal in Next 12 Months | 31,000,000 | |
Long-Term Debt and Capital Lease Obligations, Maturities, Repayments of Principal in Year Two | 31,000,000 | |
Long-Term Debt and Capital Lease Obligations, Maturities, Repayments of Principal in Year Three | 29,000,000 | |
Long-Term Debt and Capital Lease Obligations, Maturities, Repayments of Principal in Year Four | 26,000,000 | |
Long-Term Debt and Capital Lease Obligations, Maturities, Repayments of Principal in Year Five | 27,000,000 | |
Long-Term Debt and Lease Obligation, Including Current Maturities | 4,243,000,000 | |
Long-Term Debt and Capital Lease Obligations, Maturities, Repayments of Principal after Year Five | 4,099,000,000 | |
Reported Value Measurement | ||
Debt Instrument, Redemption [Line Items] | ||
Debt and Lease Obligation | 4,202,000,000 | 3,241,000,000 |
Debt Instrument, Fair Value Disclosure | 4,243,000,000 | 3,277,000,000 |
Estimate of Fair Value Measurement | ||
Debt Instrument, Redemption [Line Items] | ||
Debt and Lease Obligation | 3,839,000,000 | 3,265,000,000 |
Debt Instrument, Fair Value Disclosure | 3,839,000,000 | 3,265,000,000 |
Term Loan Three Facility Dollar Denominated | ||
Debt Instrument, Redemption [Line Items] | ||
Debt and Lease Obligation | 1,433,000,000 | 997,000,000 |
U.S Dollar-denominated 5.00% Senior Notes | ||
Debt Instrument, Redemption [Line Items] | ||
Debt and Lease Obligation | 500,000,000 | |
U.S Dollar-denominated 5.00% Senior Notes | Level 2 [Member] | Reported Value Measurement | ||
Debt Instrument, Redemption [Line Items] | ||
Debt Instrument, Fair Value Disclosure | 500,000,000 | 500,000,000 |
U.S Dollar-denominated 5.00% Senior Notes | Level 2 [Member] | Estimate of Fair Value Measurement | ||
Debt Instrument, Redemption [Line Items] | ||
Debt Instrument, Fair Value Disclosure | 483,000,000 | 539,000,000 |
2.375% Senior Euro Denominated Notes | ||
Debt Instrument, Redemption [Line Items] | ||
Debt and Lease Obligation | 825,000,000 | |
2.375% Senior Euro Denominated Notes | Level 2 [Member] | Reported Value Measurement | ||
Debt Instrument, Redemption [Line Items] | ||
Debt Instrument, Fair Value Disclosure | 874,000,000 | 984,000,000 |
2.375% Senior Euro Denominated Notes | Level 2 [Member] | Estimate of Fair Value Measurement | ||
Debt Instrument, Redemption [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 | ||
Debt Instrument, Redemption [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 | ||
Debt Instrument, Redemption [Line Items] | ||
Debt Instrument, Fair Value Disclosure | 476,000,000 | 524,000,000 |
3.500% Senior US Denominated Notes | Level 2 [Member] | Reported Value Measurement | ||
Debt Instrument, Redemption [Line Items] | ||
Debt Instrument, Fair Value Disclosure | 650,000,000 | 0 |
3.500% Senior US Denominated Notes | Level 2 [Member] | Estimate of Fair Value Measurement | ||
Debt Instrument, Redemption [Line Items] | ||
Debt Instrument, Fair Value Disclosure | 561,000,000 | 0 |
Capital Lease Obligations | ||
Debt Instrument, Redemption [Line Items] | ||
Debt and Lease Obligation | 234,000,000 | 193,000,000 |
Other Obligations | ||
Debt Instrument, Redemption [Line Items] | ||
Debt and Lease Obligation | 2,000,000 | 3,000,000 |
Debt Issuance Costs | Reported Value Measurement | ||
Debt Instrument, Redemption [Line Items] | ||
Debt and Lease Obligation | 41,000,000 | 36,000,000 |
Debt Issuance Costs | Estimate of Fair Value Measurement | ||
Debt Instrument, Redemption [Line Items] | ||
Debt and Lease Obligation | 0 | 0 |
Senior Unsecured Term Loan Facility [Member] | ||
Debt Instrument, Redemption [Line Items] | ||
Debt and Lease Obligation | 0 | 50,000,000 |
Senior Secured Credit Facilities & Other | Level 2 [Member] | Reported Value Measurement | ||
Debt Instrument, Redemption [Line Items] | ||
Debt Instrument, Fair Value Disclosure | 1,669,000,000 | 1,243,000,000 |
Senior Secured Credit Facilities & Other | Level 2 [Member] | Estimate of Fair Value Measurement | ||
Debt Instrument, Redemption [Line Items] | ||
Debt Instrument, Fair Value Disclosure | $ 1,575,000,000 | $ 1,209,000,000 |
Comprehensive Text Block List_2
Comprehensive Text Block List (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||
Nov. 18, 2021 | Nov. 23, 2020 | Jun. 30, 2022 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Net Income (Loss) Attributable to Parent | $ 168,000,000 | $ 499,000,000 | $ 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 | $ 168,000,000 | $ 483,000,000 | $ 529,000,000 | $ 173,000,000 | ||
Weighted Average Number of Shares Outstanding, Basic | 176,000,000 | 168,000,000 | 150,000,000 | |||
Weighted Average Number of Shares Outstanding, Diluted, Adjustment | 2,000,000 | 2,000,000 | 2,000,000 | |||
Weighted Average Number of Shares Outstanding, Diluted | 178,000,000 | 170,000,000 | 152,000,000 | |||
Earnings Per Share, Basic | $ 0.94 | $ 2.74 | $ 3.15 | $ 1.16 | ||
Earnings Per Share, Diluted | $ 0.93 | $ 2.73 | $ 3.11 | $ 1.14 | ||
Dividends, Preferred Stock, Stock | $ 2 | $ 2,000,000 | ||||
Series A Preferred Stock | ||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 3,000,000 | 10,000,000 | 13,000,000 | |||
Accumulated Deficit | ||||||
Net Income (Loss) Attributable to Parent | $ 499,000,000 | $ 585,000,000 | $ 221,000,000 |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities (Details) - USD ($) | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
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) |
Interest Rate Cash Flow Hedge Liability at Fair Value | $ 36,000,000 | $ 2,000,000 |
Fair Value Measures and Disclos
Fair Value Measures and Disclosures (Details) - USD ($) | 9 Months Ended | 12 Months Ended | |||
Nov. 23, 2020 | Mar. 31, 2022 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Fair Value, Option, Quantitative Disclosures [Line Items] | |||||
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 | |||
Marketable Securities | 89,000,000 | 71,000,000 | |||
Series A Preferred Stock derivative liability | 3,000,000 | ||||
Derivative, Fair Value, Net | 3,000,000 | ||||
Derivative, Gain (Loss) on Derivative, Net | (2,000,000) | (17,000,000) | $ (3,000,000) | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Purchases, Sales, Issues, Settlements | $ (4,000,000) | $ (1) | (1,000,000) | ||
Embedded Derivative, Fair Value of Embedded Derivative Liability | $ 9,000,000 | 0 | |||
Level 1 [Member] | |||||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||||
Interest Rate Cash Flow Hedge Asset at Fair Value | 0 | 0 | |||
Trading Securities at Fair Value | 2,000,000 | 1,000,000 | |||
Marketable Securities | 89,000,000 | 71,000,000 | |||
Series A Preferred Stock derivative liability | 0 | ||||
Level 2 [Member] | |||||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||||
Interest Rate Cash Flow Hedge Asset at Fair Value | 36,000,000 | 2,000,000 | |||
Trading Securities at Fair Value | 0 | 0 | |||
Marketable Securities | 0 | 0 | |||
Series A Preferred Stock derivative liability | 0 | ||||
Level 3 [Member] | |||||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||||
Interest Rate Cash Flow Hedge Asset at Fair Value | 0 | 0 | |||
Trading Securities at Fair Value | 0 | 0 | |||
Premiums Receivable, Fair Value Disclosure | 0 | ||||
Marketable Securities | $ 0 | ||||
Series A Preferred Stock derivative liability | $ 3,000,000 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2019 | |
Income Tax Contingency [Line Items] | |||||
Income (Loss) from Continuing Operations before Income Taxes, Domestic | $ 224,000,000 | $ 457,000,000 | $ 121,000,000 | ||
Income (Loss) from Continuing Operations before Income Taxes, Foreign | 355,000,000 | 258,000,000 | 139,000,000 | ||
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | $ 185,000,000 | 579,000,000 | 715,000,000 | 260,000,000 | |
Current Federal Tax Expense (Benefit) | (8,000,000) | 8,000,000 | 1,000,000 | ||
Current State and Local Tax Expense (Benefit) | 14,000,000 | 20,000,000 | 1,000,000 | ||
Current Foreign Tax Expense (Benefit) | 66,000,000 | 38,000,000 | 33,000,000 | ||
Current Income Tax Expense (Benefit) | 72,000,000 | 66,000,000 | 35,000,000 | ||
Income Tax Expense (Benefit) | 17,000,000 | 80,000,000 | 130,000,000 | 39,000,000 | |
Deferred Federal Income Tax Expense (Benefit) | 6,000,000 | 62,000,000 | 11,000,000 | ||
Deferred State and Local Income Tax Expense (Benefit) | (5,000,000) | 7,000,000 | 6,000,000 | ||
Deferred Foreign Income Tax Expense (Benefit) | 7,000,000 | (5,000,000) | (13,000,000) | ||
Deferred Income Taxes and Tax Credits | 8,000,000 | 64,000,000 | 4,000,000 | ||
Effective Income Tax Rate Reconciliation at Federal Statutory Income Tax Rate, Amount | 122,000,000 | 150,000,000 | 55,000,000 | ||
Effective Income Tax Rate Reconciliation, State and Local Income Taxes, Amount | 10,000,000 | 26,000,000 | 6,000,000 | ||
Effective Income Tax Rate Reconciliation, Foreign Income Tax Rate Differential, Amount | (28,000,000) | (14,000,000) | (6,000,000) | ||
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Amount | 2,000,000 | (5,000,000) | 2,000,000 | ||
Effective Income Tax Rate Reconciliation, Tax Contingency, Amount | 1,000,000 | 3,000,000 | (1,000,000) | ||
Effective Income Tax Rate Reconciliation, Change in Deferred Tax Assets Valuation Allowance, Amount | 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) | ||
Effective Income Tax Rate Reconciliation, Prior Year Income Taxes, Amount | 1,000,000 | 1,000,000 | 1,000,000 | ||
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Amount | 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, Gross Benefit from Swiss Tax Reform | (83,000,000) | 0 | 0 | ||
Effective Income Tax Rate Reconciliation, Other Adjustments, Amount | (1,000,000) | 0 | 1,000,000 | ||
Effective Income Tax Rate Reconciliation, Global intangible low tax income | 6,000,000 | 3,000,000 | 3,000,000 | ||
Deferred Tax Assets, Tax Deferred Expense, Reserves and Accruals, Accrued Liabilities | 33,000,000 | 33,000,000 | 43,000,000 | ||
Deferred Tax Assets, Tax Deferred Expense, Compensation and Benefits, Share-Based Compensation Cost | 14,000,000 | 14,000,000 | 15,000,000 | ||
Deferred Tax Assets, Operating Loss Carryforwards | 230,000,000 | 230,000,000 | 187,000,000 | ||
Deferred Tax Assets, Unrealized Currency Losses | 19,000,000 | 19,000,000 | 12,000,000 | ||
Deferred Tax Assets, Tax Deferred Expense, Compensation and Benefits, Pensions | 17,000,000 | 17,000,000 | 24,000,000 | ||
Deferred Tax Assets, Property, Plant and Equipment | 14,000,000 | 14,000,000 | 14,000,000 | ||
Deferred Tax Assets, Goodwill and Intangible Assets | 1,000,000 | 1,000,000 | 3,000,000 | ||
Deferred Income Tax, Operating Lease, Liabilities | 39,000,000 | 39,000,000 | 35,000,000 | ||
Deferred Tax Assets, Other Comprehensive Loss | 0 | 0 | 23,000,000 | ||
Deferred Tax Assets, Other | 2,000,000 | 2,000,000 | 0 | ||
Deferred Tax Assets, Gross | 369,000,000 | 369,000,000 | 356,000,000 | ||
Deferred Tax Assets, Valuation Allowance | (149,000,000) | (149,000,000) | (65,000,000) | ||
Deferred Tax Assets, Net of Valuation Allowance | 220,000,000 | 220,000,000 | 291,000,000 | ||
Deferred Tax Liabilities, Undistributed Foreign Earnings | (6,000,000) | (6,000,000) | 0 | ||
Deferred Tax Liabilities, Property, Plant and Equipment | (227,000,000) | (227,000,000) | (171,000,000) | ||
Deferred Tax Liabilities, Goodwill and Intangible Assets | (113,000,000) | (113,000,000) | (194,000,000) | ||
Deferred Income Tax, Right-of-Use | (21,000,000) | (21,000,000) | (18,000,000) | ||
Deferred Tax Liabilities, Other | (1,000,000) | (1,000,000) | (6,000,000) | ||
Deferred Tax Liabilities, Gross | (368,000,000) | (368,000,000) | (389,000,000) | ||
Deferred Tax Liabilities, Net | (148,000,000) | (148,000,000) | (98,000,000) | ||
Deferred Tax Assets, Deferred Income | 49,000,000 | 49,000,000 | 66,000,000 | ||
Deferred Tax Liabilities, Tax Deferred Income | (197,000,000) | (197,000,000) | (164,000,000) | ||
Unrecognized Tax Benefits | $ 5,000,000 | 5,000,000 | 5,000,000 | 4,000,000 | $ 4,000,000 |
Unrecognized Tax Benefits, Increase Resulting from Prior Period Tax Positions | 1,000,000 | 3,000,000 | 1,000,000 | ||
Unrecognized Tax Benefits, Reduction Resulting from Lapse of Applicable Statute of Limitations | (1,000,000) | $ (2,000,000) | $ (1,000,000) | ||
Unrecognized Tax Benefits, Increase Resulting from Current Period Tax Positions | 1,000,000 | ||||
Unrecognized Tax Benefits, Decrease Resulting from Settlements with Taxing Authorities | $ (1,000,000) |
Employee Retirement Benefit P_2
Employee Retirement Benefit Plans-Additional Information (Details) | 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 | $ 2,000,000 |
Eberbach Pension Promissory Note or Loan | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Debt Instrument, Interest Rate, Stated Percentage | 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 | $ 38,000,000 |
Employee Retirement Benefit P_3
Employee Retirement Benefit Plans-Accumulated Benefit Obligation (Details) - USD ($) | 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 | $ 318,000,000 | |
Fair value of plan assets at end of year | 240,000,000 | $ 318,000,000 |
Retirement Benefits [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Amortization of Gain (Loss) | 2,000,000 | 3,000,000 |
Accumulated Benefit Obligation | 262,000,000 | 364,000,000 |
Change in Benefit Obligation | ||
Benefit obligation at beginning of year | 372,000,000 | 358,000,000 |
Company service cost | 4,000,000 | 4,000,000 |
Interest Cost | 5,000,000 | 4,000,000 |
Settlements | 1,000,000 | 0 |
Defined Benefit Plan, Benefit Obligation, Benefits Paid | 9,000,000 | 13,000,000 |
Actuarial (gain)/loss | (71,000,000) | (9,000,000) |
Exchange rate gain/(loss) | (32,000,000) | 28,000,000 |
Benefit obligation at end of year | 268,000,000 | 372,000,000 |
Employer contributions between measurement date and reporting date | ||
Fair value of plan assets at beginning of year | 318,000,000 | 295,000,000 |
Actual return on plan assets | (50,000,000) | (1,000,000) |
Company contributions | 10,000,000 | 11,000,000 |
Settlements | (1,000,000) | 0 |
Defined Benefit Plan, Plan Assets, Benefits Paid | (9,000,000) | (13,000,000) |
Exchange rate gain/(loss) | (28,000,000) | 26,000,000 |
Fair value of plan assets at end of year | 240,000,000 | 318,000,000 |
Funded status at end of year | (28,000,000) | (54,000,000) |
Net Pension assets (liabilities) | (28,000,000) | (54,000,000) |
Other Post-Retirement Benefits [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Accumulated Benefit Obligation | 2,000,000 | 2,000,000 |
Change in Benefit Obligation | ||
Benefit obligation at beginning of year | 2,000,000 | 3,000,000 |
Defined Benefit Plan, Benefit Obligation, Benefits Paid | 1,000,000 | |
Benefit obligation at end of year | 2,000,000 | 2,000,000 |
Employer contributions between measurement date and reporting date | ||
Fair value of plan assets at beginning of year | (2,000,000) | |
Fair value of plan assets at end of year | (2,000,000) | |
Funded status at end of year | (2,000,000) | (2,000,000) |
Net Pension assets (liabilities) | $ (2,000,000) | $ (2,000,000) |
Employee Retirement Benefit P_4
Employee Retirement Benefit Plans-Balance Sheet (Details) - USD ($) | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Retirement Benefits [Member] | ||
Amounts Recognized in Statement of Financial Position | ||
Noncurrent assets | $ 37,000,000 | $ 43,000,000 |
Current liabilities | (1,000,000) | (1,000,000) |
Noncurrent liabilities | 64,000,000 | 96,000,000 |
Funded status at end of year | (28,000,000) | (54,000,000) |
Amounts Recognized in Accumulated Other Comprehensive Income | ||
Prior service cost | (1,000,000) | (1,000,000) |
Net (gain)/loss | (49,000,000) | (62,000,000) |
Total accumulated other comprehensive income at the end of the year | 48,000,000 | 61,000,000 |
Additional Information for Plan with ABO in Excess of Plan Assets | ||
Projected benefit obligation | 132,000,000 | 130,000,000 |
Accumulated benefit obligation | 128,000,000 | 124,000,000 |
Fair value of plan assets | 67,000,000 | 32,000,000 |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | ||
Service cost | 4,000,000 | 4,000,000 |
Interest Cost | 5,000,000 | 4,000,000 |
Defined Benefit Plan, Expected Return (Loss) on Plan Assets | (10,000,000) | (11,000,000) |
Defined Benefit Plan, Amortization of Gain (Loss) | 2,000,000 | 3,000,000 |
Net periodic benefit cost | 1,000,000 | 0 |
Other Post-Retirement Benefits [Member] | ||
Amounts Recognized in Statement of Financial Position | ||
Noncurrent liabilities | 2,000,000 | 2,000,000 |
Funded status at end of year | (2,000,000) | (2,000,000) |
Amounts Recognized in Accumulated Other Comprehensive Income | ||
Net (gain)/loss | 1,000,000 | 1,000,000 |
Total accumulated other comprehensive income at the end of the year | (1,000,000) | (1,000,000) |
Additional Information for Plan with ABO in Excess of Plan Assets | ||
Projected benefit obligation | 2,000,000 | 2,000,000 |
Accumulated benefit obligation | $ 2,000,000 | $ 2,000,000 |
Employee Retirement Benefit P_5
Employee Retirement Benefit Plans-AOCI (Details) - USD ($) | 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 | $ (13,000,000) | $ 0 | $ (4,000,000) |
Retirement Benefits [Member] | |||
Defined Benefit Plan, Amounts Recognized in Other Comprehensive Income (Loss) [Abstract] | |||
Net (gain)/loss arising during the year | (14,000,000) | ||
Exchange rate gain/(loss) recognized during the year | 1,000,000 | ||
Total minimum pension liability, pretax | 13,000,000 | ||
Other Comprehensive (Income) Loss, Defined Benefit Plan, Prior Service Cost (Credit), after Tax | (12,000,000) | ||
Estimated Amounts to be Amortized from Accumulated Other Comprehensive Income into Net Periodic Benefit Cost | |||
Net (gain)/loss | $ 1,000,000 | $ 3,000,000 | |
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 | $ 7,000,000 | $ 8,000,000 | |
Other Post-Retirement Benefits [Member] | |||
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% |
Employee Retirement Benefit P_6
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, Year One | $ 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, after Year Five for Next Five Years | $ 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, after Year Five for Next Five Years | $ 1 | $ 1 |
Employee Retirement Benefit P_7
Employee Retirement Benefit Plans-Fair Value (Details) - USD ($) | Jun. 30, 2022 | Jun. 30, 2021 |
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $ 240,000,000 | $ 318,000,000 |
Level 2 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 213,000,000 | 295,000,000 |
Level 3 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 27,000,000 | 23,000,000 |
Equity Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 10,000,000 | 14,000,000 |
Equity Securities [Member] | Level 2 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 10,000,000 | 14,000,000 |
Debt Securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 129,000,000 | 164,000,000 |
Debt Securities | Level 2 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 129,000,000 | 164,000,000 |
Real Estate [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 12,000,000 | 11,000,000 |
Real Estate [Member] | Level 2 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 10,000,000 | 11,000,000 |
Real Estate [Member] | Level 3 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 2,000,000 | 0 |
Other Assets [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 89,000,000 | 129,000,000 |
Other Assets [Member] | Level 2 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 64,000,000 | 106,000,000 |
Other Assets [Member] | Level 3 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $ 25,000,000 | $ 23,000,000 |
Employee Retirement Benefit P_8
Employee Retirement Benefit Plans-Level 3 (Details) - Level 3 [Member] | 12 Months Ended |
Jun. 30, 2022 USD ($) | |
Employer contributions between measurement date and reporting date | |
Beginning balance | $ 23,000,000 |
Relating to assets still held at the reporting date | (2,000,000) |
Purchases, sales, settlements, contributions and benefits paid | (5,000,000) |
Transfers in and/or out of Level 3 | 11,000,000 |
Ending balance | 27,000,000 |
Insurance Contracts [Member] | |
Employer contributions between measurement date and reporting date | |
Beginning balance | 3,000,000 |
Purchases, sales, settlements, contributions and benefits paid | (3,000,000) |
Transfers in and/or out of Level 3 | 9,000,000 |
Ending balance | 9,000,000 |
Other Unobservable Assets | |
Employer contributions between measurement date and reporting date | |
Beginning balance | 20,000,000 |
Relating to assets still held at the reporting date | (2,000,000) |
Purchases, sales, settlements, contributions and benefits paid | (2,000,000) |
Transfers in and/or out of Level 3 | 2,000,000 |
Ending balance | $ 18,000,000 |
Employee Retirement Benefit P_9
Employee Retirement Benefit Plans-Assumed Healthcare Trend Rates (Details) - Other Post-Retirement Benefits [Member] | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Effect of 1% Change in Healthcare Cost Trend Rate | ||
Discount rate (percent) | 4% | 2% |
Discount rate (percent) | 2% | 1.80% |
Post 65 | ||
Assumed Healthcare Cost Trend Rates at the Balance Sheet Date | ||
Healthcare cost trend rate-initial (percent) | 4.60% | 7.30% |
Healthcare cost trend rate-ultimate (percent) | 4.10% | 4.40% |
Year in which ultimate rates are reached | 2040 | 2035 |
Equity (Details)
Equity (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2019 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Derivatives used in Net Investment Hedge, Net of Tax, Period Increase (Decrease) | $ 121,000,000 | $ (56,000,000) | $ 3,000,000 | ||
Adjustment for Long-Term Intercompany Transactions, Net of Tax | (37,000,000) | 39,000,000 | (9,000,000) | ||
Translation Adjustment Functional to Reporting Currency, Net of Tax, Period Increase (Decrease) | (169,000,000) | 72,000,000 | (25,000,000) | ||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, before Tax | (85,000,000) | 55,000,000 | (31,000,000) | ||
Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Tax | 25,000,000 | (12,000,000) | 0 | ||
Cumulative Translation Adjustment, Net of Tax, Period Increase (Decrease) | 67,000,000 | ||||
Foreign Currency Translation Adjustment, Description | (110,000,000) | 67,000,000 | (31,000,000) | ||
Other Comprehensive Income (Loss), Derivative and Hedge, Gain (Loss) Arising During Period, before Tax | 36,000,000 | 4,000,000 | (4,000,000) | ||
Other Comprehensive (Income) Loss, Derivative and Hedge, after Reclassification Adjustment, Tax | 9,000,000 | 1,000,000 | (1,000,000) | ||
OCI, Debt Securities, Derivative and Hedge, Gain (Loss), after Adjustment and Tax | 27,000,000 | (3,000,000) | 3,000,000 | ||
Net gain/(loss) arising during the year | 13,000,000 | 0 | 4,000,000 | ||
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, after Tax | 4,000,000 | 0 | 2,000,000 | ||
OCI, Debt Securities, Available-for-Sale, Unrealized Holding Gain (Loss), before Adjustment and Tax | (3,000,000) | (1,000,000) | 0 | ||
OCI, Debt Securities, Available-for-Sale, Gain (Loss), after Adjustment, Tax | 0 | 0 | 0 | ||
OCI, Debt Securities, Available-for-Sale, Gain (Loss), after Adjustment and Tax | 1,000,000 | 0 | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax | $ (394,000,000) | (394,000,000) | (317,000,000) | (386,000,000) | $ (354,000,000) |
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 | 2,000,000 | 1,000,000 | |||
Accumulated Defined Benefit Plans Adjustment Attributable to Parent | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, after Tax | 9,000,000 | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (38,000,000) | (38,000,000) | (47,000,000) | (47,000,000) | (49,000,000) |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | 8,000,000 | 0 | 0 | ||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 1,000,000 | 2,000,000 | |||
ACOI, Accumulated Gain (Loss), Marketable Securities | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
OCI, Debt Securities, Available-for-Sale, Gain (Loss), after Adjustment and Tax | (3,000,000) | 1,000,000 | 0 | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (4,000,000) | (4,000,000) | (1,000,000) | 0 | 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 | ||||
Accumulated Foreign Currency Adjustment Attributable to Parent | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (378,000,000) | (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 | 0 | |||
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 | 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 | 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) | $ (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 | $ 0 |
Equity Based Compensation (Addi
Equity Based Compensation (Additional) (Details) - $ / shares | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Share-Based Payment Arrangement, Option | Minimum | |||
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | 0.70% | 0.30% | 1.70% |
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% |
Share-Based Payment Arrangement, Option | Maximum | |||
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions, Expected Term | 3 years 8 months 12 days | 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 |
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 | |
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | 1.90% | ||
Performance Shares | Minimum | |||
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% | |
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 | Maximum | |||
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 | |
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% |
Equity Based Compensation (Opti
Equity Based Compensation (Option Activity) (Details) - USD ($) | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Share-Based Payment Arrangement, Option, Exercise Price Range, Outstanding, 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 |
Time | ||
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, Outstanding, 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 | |
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 | ||
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) - $ / shares | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period | 535,000 | 502,000 |
Time Based Restricted Stock Units | ||
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 | ||
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 | |
RTSR Performance Share Units | ||
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 |
Leases, Codification Topic 842
Leases, Codification Topic 842 (Details) - USD ($) | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Finance Lease, Right-of-Use Asset, after Accumulated Amortization | $ 178,000,000 | |
Operating Lease, Right-of-Use Asset | 93,000,000 | $ 84,000,000 |
Finance Lease, Liability, Current | 17,000,000 | |
Operating Lease, Liability, Current | 14,000,000 | |
Finance Lease, Liability, Noncurrent | 217,000,000 | |
Operating Lease, Liability, Noncurrent | 85,000,000 | |
Finance Lease, Right-of-Use Asset, Amortization | 17,000,000 | |
Finance Lease, Interest Expense | 12,000,000 | |
Finance Lease Expense | 29,000,000 | |
Operating Lease, Expense | 28,000,000 | |
Variable Lease, Cost | 8,000,000 | |
Lease, Cost | $ 65,000,000 | |
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% | |
Finance Lease, Principal Payments | $ 15,000,000 | |
Finance Lease, Interest Payment on Liability | 11,000,000 | |
Operating Lease, Payments | 19,000,000 | |
Right-of-Use Asset Obtained in Exchange for Finance Lease Liability | 59,000,000 | |
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability | 31,000,000 | |
Finance Lease, Liability, to be Paid, Year One | 29,000,000 | |
Finance Lease, Liability, to be Paid, Year Two | 28,000,000 | |
Finance Lease, Liability, to be Paid, Year Three | 25,000,000 | |
Finance Lease, Liability, to be Paid, Year Four | 22,000,000 | |
Finance Lease, Liability, to be Paid, Year Five | 22,000,000 | |
Finance Lease, Liability, to be Paid | 364,000,000 | |
Finance Lease, Liability, Undiscounted Excess Amount | 130,000,000 | |
Finance Lease, Liability | 234,000,000 | |
Lessee, Operating Lease, Liability, to be Paid, Year One | 17,000,000 | |
Lessee, Operating Lease, Liability, to be Paid, Year Two | 14,000,000 | |
Lessee, Operating Lease, Liability, to be Paid, Year Three | 11,000,000 | |
Lessee, Operating Lease, Liability, to be Paid, Year Four | 11,000,000 | |
Lessee, Operating Lease, Liability, to be Paid, Year Five | 11,000,000 | |
Lessee, Operating Lease, Liability, to be Paid | 138,000,000 | |
Lessee, Operating Lease, Liability, Undiscounted Excess Amount | 39,000,000 | |
Operating Lease, Liability | 99,000,000 | |
Total Lease Liability Payments Due Year One | 46,000,000 | |
Total Lease Liability Payments Due Year Two | 42,000,000 | |
Total Lease Liability Payments Due Year Three | 36,000,000 | |
Total Lease Liability Payments Due Year Four | 33,000,000 | |
Total Lease Liability Payments Due Year Five | 33,000,000 | |
Total Lease Liability Payments Due after year Five | 312,000,000 | |
Total Lease Liability Payments Due | 502,000,000 | |
Total Lease Liability Undiscounted Excess Amount | 169,000,000 | |
Total lease liabilities | 333,000,000 | |
Lessee, Operating Lease, Liability, to be Paid, after Year Five | 74,000,000 | |
Finance Lease, Liability, to be Paid, after Year Five | $ 238,000,000 |
Other Income and Expenses (Deta
Other Income and Expenses (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Other Nonoperating Expense | $ 4 | $ 18 | $ 16 | |
Unrealized Gain (Loss), Foreign Currency Transaction, before Tax | $ 33 | 5 | (3) | |
Other Nonoperating Income (Expense) | $ (9) | (20) | (5) | |
Nonoperating Income (Expense) | $ 28 | $ 3 | $ 8 |
Segment Reporting (Details)
Segment Reporting (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Segment Reporting Information Unallocated Expense | $ (286,000,000) | $ (286,000,000) | $ 1,000,000 | $ (146,000,000) |
Depreciation, Depletion and Amortization, Nonproduction | (378,000,000) | (289,000,000) | (254,000,000) | |
Interest Income (Expense), Net | (123,000,000) | (110,000,000) | (126,000,000) | |
Income Tax Expense (Benefit) | (17,000,000) | (80,000,000) | (130,000,000) | (39,000,000) |
Income (Loss) from Continuing Operations, Net of Tax, Including Portion Attributable to Noncontrolling Interest | 499,000,000 | 585,000,000 | 221,000,000 | |
Impairment Charges And Gain Loss On Sale Of Assets | (31,000,000) | (9,000,000) | (5,000,000) | |
Share-Based Payment Arrangement, Expense | (54,000,000) | (51,000,000) | (48,000,000) | |
Restructuring And Other Special Items | (55,000,000) | (31,000,000) | (42,000,000) | |
Disposal Group, Not Discontinued Operation, Gain (Loss) on Disposal | 1,000,000 | 182,000,000 | (1,000,000) | |
Nonoperating Income (Expense) | (28,000,000) | (3,000,000) | (8,000,000) | |
Non Allocated Corporate Costs Net | (119,000,000) | (87,000,000) | (42,000,000) | |
Assets | 10,508,000,000 | 10,508,000,000 | 9,112,000,000 | |
Payments to Acquire Property, Plant, and Equipment | 660,000,000 | 686,000,000 | 466,000,000 | |
Payments and Accruals to Acquire Property, Plant. and Equipment | 666,000,000 | 686,000,000 | 466,000,000 | |
Property, Plant and Equipment, Net | 3,127,000,000 | 3,127,000,000 | 2,524,000,000 | |
UNITED STATES | ||||
Property, Plant and Equipment, Net | 2,267,000,000 | 2,267,000,000 | 1,867,000,000 | |
Europe | ||||
Property, Plant and Equipment, Net | 747,000,000 | 747,000,000 | 541,000,000 | |
Rest of World | ||||
Property, Plant and Equipment, Net | 113,000,000 | 113,000,000 | 116,000,000 | |
Biologics | ||||
Segment Reporting Information Earning Before Interest Tax Depreciation And Amortization | 777,000,000 | 615,000,000 | 239,000,000 | |
Assets | 5,770,000,000 | 5,770,000,000 | 5,009,000,000 | |
Payments to Acquire Property, Plant, and Equipment | 453,000,000 | 516,000,000 | 330,000,000 | |
PharmaConsumerHealth | ||||
Segment Reporting Information Earning Before Interest Tax Depreciation And Amortization | 589,000,000 | 498,000,000 | 547,000,000 | |
Assets | 4,356,000,000 | 4,356,000,000 | 3,320,000,000 | |
Payments to Acquire Property, Plant, and Equipment | 183,000,000 | 151,000,000 | 119,000,000 | |
Total Catalent sub-total of Segment Reporting | ||||
Segment Reporting Information Earning Before Interest Tax Depreciation And Amortization | 1,366,000,000 | 1,113,000,000 | 786,000,000 | |
Corporate And Eliminations | ||||
Assets | $ 382,000,000 | 382,000,000 | 783,000,000 | |
Payments to Acquire Property, Plant, and Equipment | $ 30,000,000 | $ 19,000,000 | $ 17,000,000 |
Comprehensive Text Block List_3
Comprehensive Text Block List (Details) - USD ($) | Jun. 30, 2022 | Jun. 30, 2021 |
Inventory, Raw Materials and Supplies, Gross | $ 651,000,000 | $ 469,000,000 |
Inventory, Work in Process, Gross | 109,000,000 | 151,000,000 |
Inventory, Gross | 760,000,000 | 620,000,000 |
Inventory Valuation Reserves | (58,000,000) | (57,000,000) |
Inventory, Net | 702,000,000 | 563,000,000 |
Prepaid Expense, Current | 61,000,000 | 46,000,000 |
Contract with Customer, Asset, after Allowance for Credit Loss, Current | 398,000,000 | |
Spare Parts | 22,000,000 | 30,000,000 |
Prepaid Taxes | 27,000,000 | 22,000,000 |
Value Added Tax Receivable | 48,000,000 | 50,000,000 |
Other Assets, Current | 70,000,000 | 47,000,000 |
Prepaid Expense and Other Assets, Current | 626,000,000 | 376,000,000 |
Land Buildings And Improvements | 1,687,000,000 | 1,571,000,000 |
Machinery and Equipment, Gross | 1,891,000,000 | 1,558,000,000 |
Furniture and Fixtures, Gross | 48,000,000 | 31,000,000 |
Construction in Progress, Gross | 848,000,000 | 543,000,000 |
Property, Plant and Equipment, Gross | 4,474,000,000 | 3,703,000,000 |
Accumulated Depreciation, Depletion and Amortization, Sale or Disposal of Property, Plant and Equipment | (1,347,000,000) | (1,179,000,000) |
Property, Plant and Equipment, Net | 3,127,000,000 | 2,524,000,000 |
Operating Lease, Right-of-Use Asset | 93,000,000 | 84,000,000 |
Loans and Leases Receivable, Gross | 51,000,000 | 47,000,000 |
Pension assets | 37,000,000 | 43,000,000 |
Cash Surrender Value of Life Insurance | 35,000,000 | 35,000,000 |
Alternative Investment | 33,000,000 | 38,000,000 |
Long-term contract assets | 43,000,000 | 0 |
Other Assets, Miscellaneous | 21,000,000 | 19,000,000 |
Other Assets, Noncurrent | 349,000,000 | 268,000,000 |
Interest Rate Derivative Assets, at Fair Value | 36,000,000 | 2,000,000 |
Deferred Revenue, Current | 211,000,000 | 305,000,000 |
Employee-related Liabilities, Current | 198,000,000 | 184,000,000 |
Other Liabilities, Current | 140,000,000 | 170,000,000 |
Accrued Operating Lease, Liabilities | 14,000,000 | 16,000,000 |
Accrued Restructuring Reserve | 1,000,000 | 4,000,000 |
Interest Payable, Current | 32,000,000 | 27,000,000 |
Accrued Income Taxes, Current | 50,000,000 | 30,000,000 |
Other Accrued Liabilities, Current | $ 646,000,000 | $ 736,000,000 |
Uncategorized Items - ctlt-2022
Label | Element | Value |
Elimination of revenue attributable to multiple locations | ctlt_EliminationOfRevenueAttributableToMultipleLocations | $ (115,000,000) |
Elimination of revenue attributable to multiple locations | ctlt_EliminationOfRevenueAttributableToMultipleLocations | (95,000,000) |
Elimination of revenue attributable to multiple locations | ctlt_EliminationOfRevenueAttributableToMultipleLocations | (80,000,000) |
Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents | us-gaap_CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents | $ 345,000,000 |