Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Mar. 31, 2023 | Apr. 30, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2023 | |
Document Transition Report | false | |
Entity File Number | 001-36587 | |
Entity Registrant Name | Catalent, Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Address, State or Province | NJ | |
Entity Tax Identification Number | 20-8737688 | |
Entity Address, Address Line One | 14 Schoolhouse Road | |
Entity Address, City or Town | Somerset, | |
Entity Address, Postal Zip Code | 08873 | |
City Area Code | (732) | |
Local Phone Number | 537-6200 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Title of 12(b) Security | Common Stock | |
Trading Symbol | CTLT | |
Security Exchange Name | NYSE | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q3 | |
Entity Central Index Key | 0001596783 | |
Current Fiscal Year End Date | --06-30 | |
Entity Common Stock, Shares Outstanding (shares) | 180,271,741 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | ||
Income Statement [Abstract] | |||||
Net revenue | $ 1,037 | $ 1,273 | $ 3,208 | $ 3,515 | |
Cost of sales | 857 | 850 | 2,383 | 2,363 | |
Gross margin | 180 | 423 | 825 | 1,152 | |
Selling, general, and administrative expenses | 190 | 207 | 612 | 618 | |
Payments for (Proceeds from) Businesses and Interest in Affiliates | [1] | 0 | 0 | 0 | (1) |
Goodwill, Impairment Loss | 210 | 0 | 210 | 0 | |
Other Cost and Expense, Operating | 15 | 5 | 40 | 25 | |
Operating earnings | (235) | 211 | (37) | 510 | |
Interest expense, net | 51 | 33 | 130 | 91 | |
Other (income)/expense, net | [2] | (4) | 2 | (2) | 25 |
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest, Total | (282) | 176 | (165) | 394 | |
Income tax expense | (55) | 35 | (19) | 63 | |
Net earnings/(loss) | (227) | 141 | (146) | 331 | |
Participating Securities, Distributed and Undistributed Earnings (Loss), Basic | 0 | 0 | 0 | 15 | |
Net Income (Loss) Available to Common Stockholders, Basic | $ (227) | $ 141 | $ (146) | $ 316 | |
Earnings Per Share, Basic | $ (1.26) | $ 0.78 | $ (0.81) | $ 1.81 | |
Earnings Per Share, Diluted | $ (1.26) | $ 0.78 | $ (0.81) | $ 1.79 | |
[1]Gain on sale of subsidiary for the nine months ended March 31, 2022[2]Other income (expense), net during the three and nine months ended March 31, 2023 and 2022 primarily includes foreign currency remeasurement losses/gains. |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income / (Loss) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Mar. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | Jun. 30, 2022 | |
Other comprehensive income/(loss), net of tax | |||||||
Net earnings/(loss) | $ (227) | $ 80 | $ (5) | $ 141 | $ (146) | $ 331 | $ 499 |
Foreign currency translation adjustments | 27 | (22) | 10 | (54) | |||
Pension and other post-retirement adjustments | 0 | 1 | 0 | 2 | |||
Available for sale investments | 2 | (1) | 4 | (2) | |||
Net change in derivatives and hedges, net of tax | (2) | 17 | 12 | 21 | |||
Other comprehensive income/(loss), net of tax | 27 | (5) | 26 | (33) | |||
Comprehensive income/(loss) | $ (200) | $ 199 | $ (125) | $ 136 | $ (120) | $ 298 | $ 422 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Mar. 31, 2023 | Jun. 30, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 252 | $ 449 |
Trade receivables, net | 1,049 | 1,051 |
Inventories | 744 | 702 |
Prepaid expenses and other | 693 | 626 |
Marketable Securities | 0 | 89 |
Total current assets | 2,738 | 2,917 |
Property, plant, and equipment, net | 3,671 | 3,127 |
Other assets: | ||
Goodwill | 3,023 | 3,006 |
Other intangibles, net | 1,012 | 1,060 |
Deferred Income Tax Assets, Net | 42 | 49 |
Other Assets, Noncurrent | 344 | 349 |
Total assets | 10,830 | 10,508 |
Current Liabilities: | ||
Debt, Current | 588 | 31 |
Accounts payable | 394 | 421 |
Other accrued liabilities | 505 | 646 |
Total current liabilities | 1,487 | 1,098 |
Long-term obligations, less current portion | 4,261 | 4,171 |
Pension liability | 104 | 103 |
Deferred Income Taxes | 119 | 197 |
Other liabilities | 156 | 164 |
Total liabilities | 6,127 | $ 5,733 |
Temporary Equity, Carrying Amount, Attributable to Parent | $ 0 | |
Common Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 |
Common Stock, Shares Authorized | 1,000,000,000 | 1,000,000,000 |
Common Stock, Value, Outstanding | $ 2 | $ 2 |
Preferred Stock, Value, Outstanding | 0 | 0 |
Additional paid in capital | 4,697 | 4,649 |
Accumulated deficit | 372 | 518 |
Accumulated other comprehensive income/(loss) | (368) | (394) |
Total shareholders' equity | 4,703 | 4,775 |
Total liabilities, redeemable preferred stock, and shareholders’ equity | $ 10,830 | $ 10,508 |
Common stock, shares issued (shares) | 180,000,000 | 179,000,000 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2023 | Jun. 30, 2022 |
Statement of Financial Position [Abstract] | ||
Common Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 |
Common Stock, Shares Authorized | 1,000,000,000 | 1,000,000,000 |
Common stock, shares issued (shares) | 180,000,000 | 179,000,000 |
Common Stock, Shares, Outstanding | 180,000,000 | 179,000,000 |
Preferred Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 |
Preferred Stock, Shares Authorized | 100,000,000 | 100,000,000 |
Preferred Stock, Shares Issued | 0 | 0 |
Preferred Stock, Shares Outstanding | 0 | 0 |
Accounts Receivable, Allowance for Credit Loss, Current | $ 29 | $ 29 |
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | $ 1,540 | $ 1,347 |
Consolidated Statement of Chang
Consolidated Statement of Changes in Shareholder's Equity - USD ($) | Total | Common Stock | Additional Paid-in Capital | Accumulated Deficit | Accumulated Other Comprehensive Income/(Loss) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Temporary Equity, Carrying Amount, Attributable to Parent | $ 359,000,000 | ||||
Common Stock, Shares, Outstanding | 170,549,000,000 | ||||
Temporary Equity, Carrying Amount, Attributable to Parent | 359,000,000 | ||||
Beginning Balance at Jun. 30, 2021 | 3,915,000,000 | $ 2,000,000 | $ 4,205,000,000 | $ 25,000,000 | $ (317,000,000) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock Issued During Period, Value, Conversion of Convertible Securities | 362,000,000 | 362,000,000 | |||
Stock-based compensation | 42,000,000 | 42,000,000 | |||
Stock Issued During Period, Shares, Conversion of Convertible Securities | 7,818,000,000 | ||||
Cash paid, in lieu of equity, for tax withholding | (9,000,000) | (9,000,000) | |||
APIC, Share-based Payment Arrangement, Option, Increase for Cost Recognition | 9,000,000 | 9,000,000 | |||
Non-qualified stock | 21,000,000 | (21,000,000) | |||
Dividends, Preferred Stock | 6,000,000 | (6,000,000) | |||
Net earnings/(loss) | 331,000,000 | 331,000,000 | |||
Other comprehensive income/(loss), net of tax | (33,000,000) | (33,000,000) | |||
Ending Balance at Mar. 31, 2022 | 4,632,000,000 | $ 2,000,000 | 4,630,000,000 | 350,000,000 | (350,000,000) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Shares Issued, Shares, Share-based Payment Arrangement, after Forfeiture | 780,000,000 | ||||
Temporary Equity, Carrying Amount, Period Increase (Decrease) | (359,000,000) | ||||
Temporary Equity, Carrying Amount, Period Increase (Decrease) | (359,000,000) | ||||
Stock Issued During Period, Shares, Conversion of Convertible Securities | 7,818,000,000 | ||||
Beginning Balance at Jun. 30, 2021 | 3,915,000,000 | $ 2,000,000 | 4,205,000,000 | 25,000,000 | (317,000,000) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net earnings/(loss) | 499,000,000 | ||||
Ending Balance at Jun. 30, 2022 | 4,775,000,000 | $ 2,000,000 | 4,649,000,000 | 518,000,000 | (394,000,000) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Temporary Equity, Carrying Amount, Attributable to Parent | 0 | ||||
Common Stock, Shares, Outstanding | 179,050,000,000 | ||||
Temporary Equity, Carrying Amount, Attributable to Parent | 0 | ||||
Beginning Balance at Dec. 31, 2021 | 4,481,000,000 | $ 2,000,000 | 4,615,000,000 | 209,000,000 | (345,000,000) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock Issued During Period, Value, Stock Options Exercised | 0 | 0 | 0 | ||
Stock-based compensation | 10,000,000 | 10,000,000 | |||
APIC, Share-based Payment Arrangement, ESPP, Increase for Cost Recognition | 3,000,000 | 3,000,000 | |||
Non-qualified stock | (2,000,000) | ||||
Net earnings/(loss) | 141,000,000 | 141,000,000 | |||
Other comprehensive income/(loss), net of tax | (5,000,000) | (5,000,000) | |||
Ending Balance at Mar. 31, 2022 | 4,632,000,000 | $ 2,000,000 | 4,630,000,000 | 350,000,000 | (350,000,000) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Share issuances related to stock-based compensation | 97,000,000 | ||||
Temporary Equity, Carrying Amount, Attributable to Parent | 0 | ||||
Common Stock, Shares, Outstanding | 179,147,000,000 | ||||
Temporary Equity, Carrying Amount, Attributable to Parent | $ 0 | ||||
Common Stock, Shares, Outstanding | 179,000,000 | 179,302,000,000 | |||
Beginning Balance at Jun. 30, 2022 | $ 4,775,000,000 | $ 2,000,000 | 4,649,000,000 | 518,000,000 | (394,000,000) |
Ending Balance at Dec. 31, 2022 | 4,892,000,000 | 2,000,000 | 4,686,000,000 | 599,000,000 | (395,000,000) |
Beginning Balance at Jun. 30, 2022 | 4,775,000,000 | 2,000,000 | 4,649,000,000 | 518,000,000 | (394,000,000) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock-based compensation | 35,000,000 | 35,000,000 | |||
Proceeds from Tax Withholding Obligations | 0 | (4,000,000) | |||
APIC, Share-based Payment Arrangement, ESPP, Increase for Cost Recognition | 9,000,000 | ||||
APIC, Share-based Payment Arrangement, Option, Increase for Cost Recognition | 4,000,000 | 9,000,000 | |||
Net earnings/(loss) | (146,000,000) | (146,000,000) | |||
Other comprehensive income/(loss), net of tax | 26,000,000 | 26,000,000 | |||
Ending Balance at Mar. 31, 2023 | 4,703,000,000 | $ 2,000,000 | 4,697,000,000 | 372,000,000 | (368,000,000) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Shares Issued, Shares, Share-based Payment Arrangement, after Forfeiture | 855,000,000 | ||||
Temporary Equity, Carrying Amount, Attributable to Parent | 0 | ||||
Common Stock, Shares, Outstanding | 179,988,000,000 | ||||
Temporary Equity, Carrying Amount, Attributable to Parent | 0 | ||||
Beginning Balance at Dec. 31, 2022 | 4,892,000,000 | $ 2,000,000 | 4,686,000,000 | 599,000,000 | (395,000,000) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Equity offering, sale of common stock, | 0 | ||||
Shares Issued, Value, Share-based Payment Arrangement, after Forfeiture | 0 | ||||
Stock-based compensation | 6,000,000 | 6,000,000 | |||
APIC, Share-based Payment Arrangement, ESPP, Increase for Cost Recognition | 2,000,000 | 2,000,000 | |||
APIC, Share-based Payment Arrangement, Option, Increase for Cost Recognition | 3,000,000 | 3,000,000 | |||
Non-qualified stock | 2,000,000 | ||||
Net earnings/(loss) | (227,000,000) | (227,000,000) | |||
Other comprehensive income/(loss), net of tax | 27,000,000 | 27,000,000 | |||
Ending Balance at Mar. 31, 2023 | 4,703,000,000 | $ 2,000,000 | $ 4,697,000,000 | $ 372,000,000 | $ (368,000,000) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Shares Issued, Shares, Share-based Payment Arrangement, after Forfeiture | 169,000,000 | ||||
Temporary Equity, Carrying Amount, Attributable to Parent | $ 0 | ||||
Common Stock, Shares, Outstanding | 180,000,000 | 180,157,000,000 | |||
Temporary Equity, Carrying Amount, Attributable to Parent | $ 0 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||||
Mar. 31, 2023 | Sep. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | Jun. 30, 2022 | Jun. 30, 2021 | ||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||
Net earnings/(loss) | $ (5) | $ 75 | $ (146) | $ 331 | |||||
Adjustments to reconcile earnings/(loss) from operations to net cash from operations: | |||||||||
Depreciation and amortization | 308 | 278 | |||||||
Goodwill, Impairment Loss | $ 210 | $ 0 | 210 | 0 | |||||
Non-cash foreign currency transaction (gain)/loss, net | (6) | 25 | |||||||
Restructuring and Related Cost, Incurred Cost | 18 | 0 | |||||||
Amortization and write-off of debt financing costs | 6 | 5 | |||||||
Asset impairments charges and (gain)/loss on sale of assets | 4 | 21 | |||||||
Payments for (Proceeds from) Businesses and Interest in Affiliates | [1] | 0 | 0 | 0 | (1) | ||||
Debt Call Premium Fees | 0 | 4 | |||||||
Derivative, Gain (Loss) on Derivative, Net | 0 | (2) | |||||||
Share issuances related to stock-based compensation | 35 | 42 | |||||||
Provision/(benefit) for deferred income taxes | (12) | (69) | 13 | $ 9 | |||||
Provision for bad debts and inventory | 99 | 14 | |||||||
Change in operating assets and liabilities: | |||||||||
Decrease/(increase) in trade receivables | 18 | 60 | |||||||
Decrease/(increase) in inventories | (135) | (93) | |||||||
Increase/(decrease) in accounts payable | (39) | (34) | |||||||
Other assets/accrued liabilities, net — current and non-current | (150) | (174) | (245) | (293) | (423) | ||||
Net Cash Provided by (Used in) Operating Activities, Total | 58 | 370 | |||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||
Acquisition of property and equipment and other productive assets | (455) | (425) | |||||||
Proceeds from Sale and Maturity of Marketable Securities | (89) | (25) | |||||||
Proceeds from Sale of Property, Plant, and Equipment | 8 | 0 | |||||||
Settlement on sale of subsidiaries, net | 0 | 3 | |||||||
Payment for acquisitions, net of cash acquired | (474) | (1,033) | |||||||
Payments to Acquire Investments | 4 | ||||||||
Proceeds from Sale and Maturity of Other Investments | (2) | ||||||||
Net cash (used in) investing activities | (834) | (1,490) | |||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||
Proceeds from Issuance of Debt | 715 | 1,100 | |||||||
Payments related to long-term obligations | (176) | (72) | |||||||
Payments of Debt Issuance Costs | (4) | (15) | |||||||
Dividends and Interest Paid | 0 | (4) | |||||||
Proceeds from Tax Withholding Obligations | 0 | ||||||||
Cash paid, in lieu of equity, for tax withholding | (9) | ||||||||
Proceeds from (Repurchase of) Equity [Abstract] | |||||||||
Proceeds from Stock Options Exercised | 4 | 21 | |||||||
Proceeds from (Payments for) Other Financing Activities | 33 | 9 | |||||||
Net cash (used in)/provided by financing activities | 572 | 1,030 | |||||||
Effect of Exchange Rate on Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 7 | (20) | |||||||
NET INCREASE/(DECREASE) IN CASH AND EQUIVALENTS | (197) | (110) | |||||||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 252 | $ 786 | 252 | 786 | 449 | $ 896 | |||
CASH AND EQUIVALENTS AT BEGINNING OF PERIOD | $ 449 | $ 449 | 449 | ||||||
CASH AND EQUIVALENTS AT END OF PERIOD | $ 252 | 252 | $ 449 | ||||||
SUPPLEMENTARY CASH FLOW INFORMATION: | |||||||||
Interest paid | 145 | 93 | |||||||
Income taxes paid, net | 83 | 40 | |||||||
Capital Expenditures Incurred but Not yet Paid | $ 8 | $ 50 | |||||||
[1]Gain on sale of subsidiary for the nine months ended March 31, 2022 |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 9 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Summary of Significant Accounting Policies | BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Business Catalent, Inc. ( “ Catalent ” or the “ Company ” ) directly and wholly owns PTS Intermediate Holdings LLC ( “ Intermediate Holdings ” ). Intermediate Holdings directly and wholly owns Catalent Pharma Solutions, Inc. ( “ Operating Company ” ). The financial results of Catalent are comprised of the financial results of Operating Company and its subsidiaries on a consolidated basis. Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States ( “U.S. GAAP ” ) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and notes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. Operating results for the nine months ended March 31, 2023 are not necessarily indicative of the results that may be expected for the year ending June 30, 2023. The consolidated balance sheet at June 30, 2022 has been derived from the audited consolidated financial statements at that date but does not include all of the information and footnotes required by U.S. GAAP for complete financial statements. For further information on the Company's accounting policies and footnotes, refer to the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended June 30, 2022 (as amended by Amendment No.1 on Form 10-K/A filed with the Securities and Exchange Commission (the “SEC”) on June 12, 2023, the “Amended Fiscal 2022 10-K”). 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. 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 ( 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”). Revision of Previously Issued Financial Statements In connection with the preparation of its consolidated financial statements as of and for the three and nine months ended March 31, 2023, the Company identified an immaterial prior period error related to the recognition of revenue in its previously issued consolidated financial statements. In accordance with SAB No. 99, “Materiality,” and SAB No. 108, “Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements,” and as described further in Note 2, Revisions of Previously Issued Financial Statements , the Company evaluated the error and determined that the related impacts were not material to its financial statements for the prior annual period when they occurred, but that correcting the the error would be significant to the Company's results of operations for the three and nine months ended March 31, 2023. Accordingly, the Company has revised previously reported financial information for such immaterial error. A summary of revisions to certain previously reported financial information presented herein for comparative purposes is included in Note 2, Revisions of Previously Issued Financial Statements . Reclassifications Consequent to the reorganization noted above, certain prior-period amounts were reclassified to conform to the current period presentation. Foreign Currency Translation The financial statements of the Company’s operations are generally measured using the local currency as the functional currency. Adjustments to translate the assets and liabilities of operations outside the United States (“U.S.”) into U.S. dollars are accumulated as a component of other comprehensive income utilizing period-end exchange rates. Since July 1, 2018, the Company has accounted for its Argentine operations as highly inflationary. 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, biopharmaceutical 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. As of March 31, 2023 and June 30, 2022, the Company had one customer that represented 23% and 14%, respectively, of its aggregate net trade receivables and current contract asset values, primarily associated with the Company's Biologics segment. After performing a risk assessment of this customer, the Company has determined that a reserve is not warranted as of March 31, 2023. Additionally, the Company had two customers in its Biologics segment that each that represented approximately 11% of consolidated net revenue during the three months ended March 31, 2023. These same two customers represented 9% and 5% of net revenue in the three months ended March 31, 2022. Depreciation Depreciation expense was $72 million and $66 million for the three months ended March 31, 2023 and 2022, respectively. Depreciation expense was $207 million and $188 million for the nine months ended March 31, 2023 and 2022, respectively. Depreciation expense includes amortization of assets related to finance leases. The Company charges repairs and maintenance costs to expense as incurred. Amortization Amortization expense related to other intangible assets was $34 million and $33 million for the three months ended March 31, 2023 and 2022, respectively. Amortization expense related to other intangible assets was $101 million and $90 million for the nine months ended March 31, 2023 and 2022, respectively. Research and Development Costs The Company expenses research and development costs as incurred. Research and development costs amounted to $4 million and $6 million for the three months ended March 31, 2023 and 2022, respectively. Research and development costs amounted to $13 million and $18 million for the nine months ended March 31, 2023 and 2022, respectively. Marketable Securities The Company classifies its marketable securities as available-for-sale, because it may sell certain of its marketable securities prior to the stated maturity for various reasons, including management of liquidity, credit risk, duration, relative return, and asset allocation. The Company determines the fair value of each marketable security in its portfolio at each period end and recognizes gains and losses in the portfolio in other comprehensive income. As of March 31, 2023, all of the Company's outstanding marketable securities had matured. The amortized cost basis of all previously owned marketable securities approximated fair value and all previously outstanding marketable securities matured within one year. Recent Financial Accounting Standards New Accounting Standards Not Adopted as of March 31, 2023 In March 2020, the FASB issued Accounting Standards Update (“ASU”) 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides optional guidance to ease the potential burden in accounting for the discontinuation of a reference rate such as LIBOR, formerly known as the London Interbank Offered Rate, because of reference rate reform. In December 2022, the FASB issued ASU 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848, which delayed the effective date from December 31, 2022 to December 31, 2024. The Company is currently evaluating the impact of adopting this guidance on its consolidated financial statements. |
Accounting Changes and Error Co
Accounting Changes and Error Corrections - USD ($) $ in Millions | 3 Months Ended | ||||
Mar. 31, 2023 | Jun. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | |
Accounting Changes and Error Corrections [Abstract] | |||||
REVISIONS OF PREVIOUSLY-ISSUED FINANCIAL STATEMENTS [Text Block] | REVISIONS OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS As described in the Amended Fiscal 2022 10-K, 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 its fiscal year ended June 30, 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 those 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 following tables reflect the impact of this revision on the Company’s consolidated balance sheet as of 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 | ||||
Other Accrued Liabilities | $ 646 | $ 553 | $ 484 | $ 646 |
Business Combinations
Business Combinations | 3 Months Ended |
Mar. 31, 2023 | |
Business Combinations [Abstract] | |
Business Combination Disclosure [Text Block] | BUSINESS COMBINATIONS |
Goodwill
Goodwill | 9 Months Ended |
Mar. 31, 2023 | |
Goodwill Disclosure [Abstract] | |
Goodwill | GOODWILL The following table summarizes the changes between June 30, 2022 and March 31, 2023 in the carrying amount of goodwill in total and by segment: (Dollars in millions) Biologics Pharma and Consumer Health Total Balance at June 30, 2022 (1) $ 1,535 $ 1,471 $ 3,006 Additions (2) — 216 216 Reallocation 16 (16) — Foreign currency translation adjustments 7 4 11 Impairment — (210) (210) Balance at March 31, 2023 $ 1,558 $ 1,465 $ 3,023 (1) As of result of the organizational realignments effective July 1, 2022, (described in Note 1, Basis of Presentation and Summary of Significant Accounting Policies ), the beginning balance presentation has been reclassified to conform with the current period reportable segments. All changes as a result of the organizational realignments are captured in the row labeled "reallocation." (2) The addition to goodwill is a result of the Metrics acquisition. For further details, see Note 4, Business Combinations. As part of the business reorganization discussed in Note 1, Basis of Presentation and Summary of Significant Accounting Policies , the goodwill from the previous Biologics, Softgel and Oral Technologies, Oral and Specialty Delivery, and Clinical Supply Services segments was reallocated between the current Biologics and Pharma and Consumer Health segments. Goodwill Impairment Charges The Company assessed the current and future economic outlook as of March 31, 2023 for its reporting units in its Pharma and Consumer Health and Biologics segments and identified an indicator for impairment of the goodwill previously recorded for one of the reporting units in its Pharma and Consumer Health segment. The evaluation began with a qualitative assessment of each reporting unit to determine if it was more likely than not that the fair value of the reporting unit was less than its carrying value. The qualitative assessment did not indicate that it was more likely than not that the fair value exceeded the carrying value in its Consumer Health reporting unit, which led to a quantitative assessment for each of the Company's reporting units. The Company estimated the fair value of its reporting units using a combination of the income and market approaches. In performing the goodwill impairment test, the Company used a long-term revenue growth rate of 3% and discount rates ranging from 9% to 10.50% in its estimation of fair value. The evaluation performed resulted in an impairment charge of $210 million with respect to the Consumer Health reporting unit. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Mar. 31, 2023 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | EARNINGS PER SHARE Effective as of the first quarter of fiscal 2023, the Company computes earnings per share of the Company’s common stock, par value $0.01 (the “Common Stock”) using the treasury stock method. Prior to fiscal 2023, the Company computed earnings (loss) per share of the Common Stock using the two-class method required due to the participating nature of the previously outstanding Series A Preferred Stock (as defined and discussed in Note 14, Equity and Accumulated Other Comprehensive Loss ). Diluted net (loss) earnings per share is computed using the weighted average number of shares of Common Stock outstanding plus the weighted average number of shares of Common Stock that would be issued assuming exercise or conversion of all potentially dilutive instruments. Dilutive securities having an anti-dilutive effect on diluted net earnings per share are excluded from the calculation. The dilutive effect of the securities that are issuable under the Company’s equity incentive plans are reflected in diluted earnings per share by application of the treasury stock method. Prior to fiscal 2023, the Company applied the if-converted method to compute the potentially dilutive effect of the previously outstanding Series A Preferred Stock. The reconciliations between basic and diluted earnings per share attributable to Catalent common shareholders for the three and nine months ended March 31, 2023 and 2022, respectively, are as follows: Three Months Ended Nine Months Ended (In millions except per share data) 2023 2022 2023 2022 Net (loss) earnings $ (227) $ 141 $ (146) $ 331 Less: Net earnings attributable to preferred shareholders — — — (15) Net (loss) earnings attributable to common shareholders $ (227) $ 141 $ (146) $ 316 Weighted average shares outstanding - basic 181 180 180 176 Weighted average dilutive securities issuable - stock plans — 1 — 1 Weighted average shares outstanding - diluted 181 181 180 177 (Loss) earnings per share: Basic $ (1.26) $ 0.78 $ (0.81) $ 1.81 Diluted $ (1.26) $ 0.78 $ (0.81) $ 1.79 The Company's formerly outstanding 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 holders of Series A Preferred Stock converted 265,223 shares of Series A Preferred Stock and $2 million of unpaid accrued dividends into shares of Common Stock. On November 18, 2021, 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. Shares with an antidilutive effect on the weighted average shares outstanding for the three and nine months ended March 31, 2023 and 2022 were not material. |
Other (Income)_ Expense, Net
Other (Income)/ Expense, Net | 9 Months Ended |
Mar. 31, 2023 | |
Other Income and Expenses [Abstract] | |
Other Income and Other Expense Disclosure [Text Block] | OTHER (INCOME) EXPENSE, NET The components of other expense, net for the three and nine months ended March 31, 2023 and 2022 are as follows: Three Months Ended Nine Months Ended (Dollars in millions) 2023 2022 2023 2022 Debt financing costs (1) $ — $ — $ — $ 4 Foreign currency (gains) losses (2) (4) 4 (5) 28 Other (3) — (2) 3 (7) Total other (income) expense, net $ (4) $ 2 $ (2) $ 25 (1) Debt financing costs for the nine months ended March 31, 2022 includes $4 million of financing charges related to the $450 million aggregate principal amount of U.S. dollar-denominated term loans borrowed in that period under the Company’s senior secured credit facilities (together with all of the remaining U.S. dollar-denominated term loans outstanding, the “Term B-3 Loans”). (2) Foreign currency remeasurement gains/losses include both cash and non-cash transactions. |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 9 Months Ended |
Mar. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities | DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES Risk Management Objective of Using Derivatives The Company is exposed to fluctuations in the currency exchange rates applicable to its investments in operations outside the U.S. While the Company does not actively hedge against changes in foreign currency, the Company has mitigated exposure from its investments in its European operations by denominating a portion of its debt in euros. At March 31, 2023, the Company had euro-denominated debt outstanding of $895 million (U.S. dollar equivalent), which is designated and qualifies as a hedge against its net investment in its European operations. For non-derivatives designated and qualifying as net investment hedges, the effective portion of translation gains or losses are reported in accumulated other comprehensive loss as part of the cumulative translation adjustment. The unhedged portions of the euro-denominated debt translation gains or losses are reported in the consolidated statements of operations. The following table summarizes net investment hedge activity during the three and nine months ended March 31, 2023 and 2022. Three Months Ended Nine Months Ended (Dollars in millions) 2023 2022 2023 2022 Unrealized foreign exchange gain (loss) within other comprehensive income $ (16) $ 28 $ (20) $ 90 Unrealized foreign exchange gain (loss) within statement of operations $ — $ — $ — $ (11) The net accumulated gain on the instrument designated as a hedge as of March 31, 2023 within other comprehensive loss was approximately $107 million. Amounts are reclassified out of accumulated other comprehensive loss into earnings when the entity to which the gains and losses relate is either sold or substantially liquidated. Interest-Rate Swap In April 2020, pursuant to its interest rate and risk management strategy, the Company entered into an interest-rate swap agreement with Bank of America N.A. (the “2020 Rate Swap”) 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. In February 2021, in connection with an amendment to the Credit Agreement, the Company paid $2 million in cash to Bank of America N.A to settle the 2020 Rate Swap. This loss is deferred in stockholders’ equity, net of income taxes, as a component of accumulated other comprehensive loss, and amortized as an adjustment to interest expense, net over the original term of the formerly outstanding term loans. The net amount of deferred losses on cash flow hedges that is expected to be reclassified from accumulated other comprehensive loss into interest expense, net within the next twelve months is not material. In February 2021, the Company entered into a new interest-rate swap agreement with Bank of America N.A. (the “2021 Rate Swap”) as a hedge against the economic effect of a portion of the variable interest obligation associated with its Term B-3 Loans. The 2021 Rate Swap effectively fixed the rate of interest payable on that portion of the Term B-3 Loans, thereby reducing the impact of future interest rate changes on future interest expense. As a result of the 2021 Rate Swap, the variable portion of the applicable interest rate on $500 million of the Term B-3 Loans is now effectively fixed at 0.9985%. The 2021 Rate Swap 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 2021 Rate Swap is reported in cash provided by operating activities in the consolidated statements of cash flows. The unrealized gain recorded in stockholder's equity from marking the 2021 Rate Swap to market during the nine months ended March 31, 2023 was $15 million. A summary of the estimated fair value of the 2021 Rate Swap reported in the consolidated balance sheets is stated in the table below: March 31, 2023 June 30, 2022 (Dollars in millions) Balance Sheet Classification Estimated Fair Value Balance Sheet Classification Estimated Fair Value Interest-rate swap Other long-term assets $ 51 Other long-term assets $ 36 |
Fair Value Measures and Disclos
Fair Value Measures and Disclosures | 9 Months Ended |
Mar. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures | FAIR VALUE MEASUREMENTS ASC 820, Fair Value Measurement, defines fair value as the exit price that would be received to sell an asset or paid to transfer a liability. Fair value is a market-based measurement that should be determined using assumptions that market participants would use in pricing an asset or liability. Valuation techniques used to measure fair value should maximize the use of observable inputs and minimize the use of unobservable inputs. To measure fair value, the Company uses the following fair value hierarchy based on three levels of inputs, of which Level 1 and Level 2 are considered observable and Level 3 is considered unobservable: Level 1 – Quoted prices in active markets for identical assets or liabilities. Level 2 – Inputs other than Level 1 that are observable for the asset or liability, either directly or indirectly, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data by correlation or other means. Level 3 – Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Value is determined using pricing models, discounted cash flow methodologies, or similar techniques and also includes instruments for which the determination of fair value requires significant judgment or estimation. Assets and Liabilities Measured at Fair Value on a Recurring Basis The carrying amounts of cash and cash equivalents, accounts receivable, accounts payable and accrued expenses of the Company approximate fair value based on the short maturities of these instruments. The Company evaluates its financial assets and liabilities subject to fair value measurements on a recurring basis to determine the appropriate level of classification as of the end of each reporting period. The following table sets forth the Company’s financial assets and liabilities that were measured at fair value on a recurring basis and the fair value measurement for such assets and liabilities at March 31, 2023 and June 30, 2022: (Dollars in millions) Basis of Fair Value Measurement March 31, 2023 Total Level 1 Level 2 Level 3 Assets: Interest-rate swap $ 51 $ — $ 51 $ — Trading securities 1 1 — — June 30, 2022 Assets: Marketable securities $ 89 $ 89 $ — $ — Interest-rate swap 36 — 36 — Trading securities 2 2 — — The fair value of the 2021 Rate Swap 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. Long-lived assets, goodwill, and other intangible assets are subject to non-recurring fair value measurement for the evaluation of potential impairment. T he carrying value of the Consumer Health reporting unit approximates its fair value as of March 31, 2023 following the impairment charge . |
Income Taxes
Income Taxes | 9 Months Ended |
Mar. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES The Company accounts for income taxes in accordance with ASC 740, Income Taxes . Generally, fluctuations in the effective tax rate are due to changes in relative amounts of U.S. and non-U.S. pretax income, the tax impact of special items, and other discrete tax items. Discrete items include, but are not limited to, changes in non-U.S. statutory tax rates, amortization of certain assets, changes in the Company’s reserve for uncertain tax positions, and tax impact of certain equity compensation. In the normal course of business, the Company is subject to examination by taxing authorities around the world. The Company is presently under audit in select jurisdictions in the United States and in Europe, but no material impact is expected to the financial results once these audits are completed. ASC 740 provides guidance for the accounting of uncertain income tax positions recognized in the Company's tax filings. This guidance provides that a tax benefit from an uncertain tax position may be recognized when it is more likely than not that, based on technical merits, the position will be sustained upon examination, including resolution of any related appeal or litigation process. As of March 31, 2023 and June 30, 2022, the Company’s reserve against uncertain income tax positions was $2 million and $5 million, respectively. The reduction during the quarter is attributable both the favorable settlement of an international audit examination and the expiration of the statute of limitations on certain of the reserves. Interest and penalties related to uncertain tax positions are recognized as a component of income tax expense. The Company recorded a benefit for income taxes for the three months ended March 31, 2023 of $55 million relative to loss before income taxes of $282 million. The Company recorded a provision for income taxes for the three months ended March 31, 2022 of $35 million relative to earnings before income taxes of $176 million. The income tax benefit for the quarter is primarily the result of a deferred tax benefit resulting from the impairment of goodwill during the quarter and certain discrete income tax benefits. This income tax benefit was partially reduced by unfavorable permanent tax adjustments that were fixed and not impacted by the reduced pretax earnings. Discrete items recognized during the quarter include a favorable audit settlement and equity related compensation tax benefits. The quarterly provision was also impacted by the geographic distribution of the Company's pretax income resulting from our business mix, changes in the tax impact of permanent differences, restructuring, special items, certain equity related compensation, and other discrete tax items that may have unique tax implications depending on the nature of the item. |
Employee Retirement Benefit Pla
Employee Retirement Benefit Plans | 9 Months Ended |
Mar. 31, 2023 | |
Retirement Benefits [Abstract] | |
Employee Retirement Benefit Plans | EMPLOYEE RETIREMENT BENEFIT PLANS Components of the Company’s net periodic benefit costs are as follows: Three Months Ended Nine Months Ended (Dollars in millions) 2023 2022 2023 2022 Components of net periodic benefit cost: Selling, general, and administrative expenses: Service cost $ 1 $ 1 $ 3 $ 3 Other expense, net: Interest cost 3 1 7 3 Expected return on plan assets (2) (2) (6) (7) Amortization (1) — 1 — 3 Net amount recognized $ 2 $ 1 $ 4 $ 2 (1) Amount represents the amortization of unrecognized actuarial losses. |
Equity and Accumulated Other Co
Equity and Accumulated Other Comprehensive Income (Loss) | 9 Months Ended |
Mar. 31, 2023 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Equity, Redeemable Preferred Stock and Accumulated Other Comprehensive Loss | EQUITY AND ACCUMULATED OTHER COMPREHENSIVE LOSS Description of Capital Stock The Company is authorized to issue 1.00 billion shares of its Common Stock and 100 million shares of preferred stock, par value $0.01 per share. In accordance with the Company’s amended and restated certificate of incorporation, each share of Common Stock has one vote, and the Common Stock votes together as a single class. In 2019, the Company designated 1,000,000 shares of its preferred stock, par value $0.01, as its Series A Convertible Preferred Stock (the “Series A Preferred Stock”) and issued and sold 650,000 shares of the Series A Preferred Stock to affiliates of Leonard Green & Partners, L.P. In November 2021, the holders of the Series A Preferred Stock converted all then-outstanding shares of Series A Preferred Stock and $2 million of related unpaid accrued dividends into shares of Common Stock. Accumulated Other Comprehensive Loss The components of the changes in the cumulative translation adjustment, derivatives and hedges, minimum pension liability, and marketable securities for the three and nine months ended March 31, 2023 and 2022 are presented below. Three Months Ended Nine Months Ended (Dollars in millions) 2023 2022 2023 2022 Foreign currency translation adjustments: Net investment hedge $ (16) $ 28 $ (20) $ 90 Long-term intercompany loans 9 (8) (1) (15) Translation adjustments 31 (36) 26 (109) Total foreign currency translation adjustment, pretax 24 (16) 5 (34) Tax (benefit) expense (3) 6 (5) 20 Total foreign currency translation adjustment, net of tax $ 27 $ (22) $ 10 $ (54) Net change in derivatives and hedges: Net (loss) gain recognized during the period $ (3) $ 23 $ 15 $ 28 Total derivatives and hedges, pretax (3) 23 15 28 Tax (benefit) expense (1) 6 3 7 Net change in derivatives and hedges, net of tax $ (2) $ 17 $ 12 $ 21 Net change in minimum pension liability: Net gain recognized during the period $ — $ 1 $ — $ 2 Total pension liability, pretax — 1 — 2 Tax benefit — — — — Net change in minimum pension liability, net of tax $ — $ 1 $ — $ 2 Net change in marketable securities: Net gain (loss) recognized during the period $ — $ (2) $ 1 $ (3) Amounts reclassified from accumulated other 2 — 4 — Net change in marketable securities, pretax 2 (2) 5 (3) Tax (benefit) expense — $ (1) 1 $ (1) Net change in marketable securities, net of tax $ 2 $ (1) $ 4 $ (2) For the three months ended March 31, 2023 and 2022, the changes in accumulated other comprehensive loss, net of tax by component are as follows: (Dollars in millions) Foreign Exchange Translation Adjustments Pension and Liability Adjustments Derivatives and Hedges Marketable Securities Other Total Balance at December 31, 2022 $ (395) $ (38) $ 41 $ (2) $ (1) $ (395) Other comprehensive income (loss) before 27 — (2) — — 25 Amounts reclassified from accumulated other — — — 2 — 2 Net current period other comprehensive income (loss) 27 — (2) 2 — 27 Balance at March 31, 2023 $ (368) $ (38) $ 39 $ — $ (1) $ (368) (Dollars in millions) Foreign Exchange Translation Adjustments Pension and Liability Adjustments Derivatives and Hedges Marketable Securities Other Total Balance at December 31, 2021 $ (300) $ (46) $ 4 $ (2) $ (1) $ (345) Other comprehensive (loss) income before (22) — 17 (1) — (6) Amounts reclassified from accumulated other — 1 — — — 1 Net current period other comprehensive (loss) income (22) 1 17 (1) — (5) Balance at March 31, 2022 $ (322) $ (45) $ 21 $ (3) $ (1) $ (350) For the nine months ended March 31, 2023 and 2022, the changes in accumulated other comprehensive loss, net of tax by component are as follows: (Dollars in millions) Foreign Exchange Translation Adjustments Pension and Liability Adjustments Derivatives and Hedges Marketable Securities Other Total Balance at June 30, 2022 $ (378) $ (38) $ 27 $ (4) $ (1) $ (394) Other comprehensive income before 10 — 12 — — 22 Amounts reclassified from accumulated other — — — 4 — 4 Net current period other comprehensive income 10 — 12 4 — 26 Balance at March 31, 2023 $ (368) $ (38) $ 39 $ — $ (1) $ (368) |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Mar. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES Litigation From time to time, the Company may be involved in legal proceedings arising in the ordinary course of business, including, without limitation, inquiries and claims concerning environmental contamination as well as litigation and allegations in connection with acquisitions, product liability, manufacturing or packaging defects, and claims for reimbursement for the cost of lost or damaged active pharmaceutical ingredients, the cost of any of which could be significant. Such matters are inherently uncertain, and there can be no guarantee that the outcome of any such matter will be decided favorably to the Company or that the resolution of any such matter will not have a material adverse effect upon the Company’s consolidated financial statements. The Company records a liability in its consolidated financial statements for these matters when a loss is known or considered probable and the amount can be reasonably estimated. The Company reviews these estimates each accounting period as additional information is known and adjusts the loss provision when appropriate. If a matter is both probable to result in a liability and the amount of loss can be reasonably estimated, the Company estimates and discloses the possible loss or range of loss to the extent necessary for its consolidated financial statements not to be misleading. If the loss is not probable or cannot be reasonably estimated, a liability is not recorded in the Company's consolidated financial statements. Any legal or other expenses associated with the litigation are accrued for as the expenses are incurred. The Company intends to vigorously defend itself against any such litigation and does not currently believe that the outcome of any such litigation will have a material adverse effect on the Company’s consolidated financial statements. In addition, the healthcare industry is highly regulated and government agencies continue to scrutinize certain practices affecting government programs and otherwise. City of Warwick Retirement System Class Action In February 2023, an alleged shareholder filed a Complaint styled City of Warwick Retirement System v. Catalent, Inc., et al. , No. 23-cv-01108 in New Jersey federal court against the Company and three of its then-officers (collectively, the “Defendants”) purportedly on behalf of a putative “class” consisting of persons who purchased or otherwise acquired Company securities between August 30, 2021 and October 31, 2022, inclusive (the “Class Period”). The Complaint asserts claims under Section 10(b) and 20(a) of the Securities Exchange Act of 1934, as amended and the related regulations, alleging that, unbeknownst to investors, Defendants purportedly engaged in accounting and channel stuffing schemes to pad Catalent’s revenues and failed to disclose adverse facts that purportedly were known to or recklessly disregarded by Defendants. Specifically, the Complaint alleges that (i) Catalent overstated revenue and earnings by prematurely recognizing revenue in violation of U.S. GAAP; (ii) Catalent had material weaknesses in its internal controls over financial reporting related to revenue recognition; (iii) Catalent falsely represented demand for its products while it knowingly sold more product to its direct customers than could be sold to healthcare providers and end consumers; (iv) Catalent cut corners on safety and control procedures at key production facilities; (v) Catalent disregarded regulatory rules at key production facilities in order to rapidly produce excess inventory that was used to pad the Company’s financial results through premature revenue recognition in violation of U.S. GAAP or stuffing its direct customers with this excess inventory; and (vi) Defendants lacked a reasonable basis for their positive statements about the Company’s financial performance, outlook, and regulatory compliance during the Class Period. The Company believes that the allegations and claims set forth in the Complaint are without merit and intends to vigorously defend itself once the court names a lead plaintiff and the lead plaintiff files or designates an operative complaint. Subpoenas and Requests for Information |
Segment Information
Segment Information | 9 Months Ended |
Mar. 31, 2023 | |
Segment Reporting [Abstract] | |
Segment Information | SEGMENT INFORMATION The Company evaluates the performance of its segments based on segment earnings before other (expense) income, impairments, restructuring costs, interest expense, income tax expense, and depreciation and amortization (“Segment EBITDA”). Segment EBITDA is subject to important limitations. These consolidated financial statements include information concerning Segment EBITDA (a) because Segment EBITDA is an operational measure used by management in the assessment of the operating segments, the allocation of resources to the segments, and the setting of strategic goals and annual goals for the segments, and (b) in order to provide supplemental information that the Company considers relevant for the readers of the consolidated financial statements. The Company’s presentation of Segment EBITDA may not be comparable to similarly titled measures used by other companies. The following tables include Segment EBITDA for each of the Company's current reportable segments during the three and nine months ended March 31, 2023 and 2022: (Dollars in millions) Three Months Ended Nine Months Ended 2023 2022 2023 2022 Segment EBITDA reconciled to net (loss) earnings: Biologics $ 6 $ 218 $ 299 $ 584 Pharma and Consumer Health 125 144 368 390 Sub-Total $ 131 $ 362 $ 667 $ 974 Reconciling items to net earnings Unallocated costs (1) (256) (54) (394) (211) Depreciation and amortization (106) (99) (308) (278) Interest expense, net (51) (33) (130) (91) Income tax expense 55 (35) 19 (63) Net (loss) earnings $ (227) $ 141 $ (146) $ 331 (1) Unallocated costs include restructuring and special items, stock-based compensation, gain on sale of subsidiary, impairment charges, certain other corporate directed costs, and other costs that are not allocated to the segments as follows: (Dollars in millions) Three Months Ended March 31, Nine Months Ended 2023 2022 2023 2022 Impairment charges and gain/loss on sale of assets (a) $ (6) $ (2) $ (4) $ (21) Stock-based compensation (6) (10) (35) (42) Restructuring and other special items (b) (17) (12) (59) (43) Goodwill impairment charges (c) (210) — (210) — Gain on sale of subsidiary (d) — — — 1 Other income (expense), net (e) 4 (2) 2 (25) Unallocated corporate costs, net (21) (28) (88) (81) Total unallocated costs $ (256) $ (54) $ (394) $ (211) (a) Impairment charges and gain/loss on sale of assets during the nine months ended March 31, 2022 include fixed asset impairment charges associated with a product the Company no longer manufactures in its Pharma and Consumer Health segment. (b) Restructuring and other special items during the three months ended March 31, 2023 include (i) restructuring charges associated with plans to reduce costs, consolidate facilities, and optimize our infrastructure across the organization and (ii) transaction and integration costs associated with the Metrics acquisition. Restructuring and other special items for the nine months ended March 31, 2023 also includes warehouse exit costs for a product the Company no longer manufactures in its Pharma and Consumer Health segment. For further details on restructuring charges, see Note 9, Restructuring Costs . Restructuring and other special items during the three months ended March 31, 2022 include (i) integration costs primarily associated with the Bettera Wellness acquisition and (ii) unrealized losses on venture capital investments. Restructuring and other special items during the nine months ended March 31, 2022 also include transaction and integration costs associated with the Delphi Genetics S.A., Hepatic Cell Therapy Support S.A., RheinCell Therapeutics GmbH acquisitions and the Acorda Therapeutics, Inc. transaction. (c) Goodwill impairment charges during the three and nine months ended March 31, 2023 was associated with the Company’s Consumer Health reporting unit. For further details, see Note 5, Goodwill . (d) Gain on sale of subsidiary for the nine months ended March 31, 2022 was due to the sale of the Company’s facility in Woodstock, Illinois and the associated business. (e) Other income (expense), net during the three and nine months ended March 31, 2023 and 2022 primarily includes foreign currency remeasurement losses/gains. The following table includes total assets for each segment, as well as reconciling items necessary to total the amounts reported in the consolidated financial statements. (Dollars in millions) March 31, June 30, Assets: Biologics $ 5,904 $ 5,770 Pharma and Consumer Health 4,847 4,356 Corporate and eliminations 79 382 Total assets $ 10,830 $ 10,508 |
Supplemental Balance Sheet Info
Supplemental Balance Sheet Information | 9 Months Ended |
Mar. 31, 2023 | |
Balance Sheet Related Disclosures [Abstract] | |
Supplemental Balance Sheet Information | SUPPLEMENTAL BALANCE SHEET INFORMATION Supplemental balance sheet information at March 31, 2023 and June 30, 2022 is detailed in the following tables. Inventories Work-in-process and inventories include raw materials, labor, and overhead. Total inventories consist of the following: (Dollars in millions) March 31, June 30, Raw materials and supplies $ 762 $ 651 Work-in-process 144 109 Total inventories, gross 906 760 Inventory cost adjustment (1) (162) (58) Total inventories $ 744 $ 702 (1) Increase in inventory cost adjustment is primarily associated with inventory write-offs resulting from the terminations of certain take-or-pay arrangements. Prepaid expenses and other Prepaid expenses and other consist of the following: (Dollars in millions) March 31, June 30, Prepaid expenses $ 70 $ 61 Short-term contract assets 488 398 Spare parts supplies 24 22 Prepaid income tax 35 27 Non-U.S. value-added tax 35 48 Other current assets 41 70 Total prepaid expenses and other $ 693 $ 626 Other accrued liabilities Other accrued liabilities consist of the following: (Dollars in millions) March 31, June 30, Contract liabilities $ 203 $ 211 Accrued employee-related expenses 132 198 Accrued expenses 111 140 Operating lease liabilities 11 14 Restructuring accrual 1 1 Accrued interest 24 32 Accrued income tax 23 50 Total other accrued liabilities $ 505 $ 646 |
Subsequent Events (Notes)
Subsequent Events (Notes) | 9 Months Ended |
Mar. 31, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | SUBSEQUENT EVENTS |
Basis of Presentation and Sum_2
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States ( “U.S. GAAP ” ) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and notes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. Operating results for the nine months ended March 31, 2023 are not necessarily indicative of the results that may be expected for the year ending June 30, 2023. The consolidated balance sheet at June 30, 2022 has been derived from the audited consolidated financial statements at that date but does not include all of the information and footnotes required by U.S. GAAP for complete financial statements. For further information on the Company's accounting policies and footnotes, refer to the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended June 30, 2022 (as amended by Amendment No.1 on Form 10-K/A filed with the Securities and Exchange Commission (the “SEC”) on June 12, 2023, the “Amended Fiscal 2022 10-K”). 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. 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 ( 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”). |
Reclassification, Policy | Reclassifications Consequent to the reorganization noted above, certain prior-period amounts were reclassified to conform to the current period presentation. |
Foreign Currency Translation | Foreign Currency Translation The financial statements of the Company’s operations are generally measured using the local currency as the functional currency. Adjustments to translate the assets and liabilities of operations outside the United States (“U.S.”) into U.S. dollars are accumulated as a component of other comprehensive income utilizing period-end exchange rates. Since July 1, 2018, the Company has accounted for its Argentine operations as highly inflationary. |
Concentration Risk, Credit Risk, Policy | 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, biopharmaceutical 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. As of March 31, 2023 and June 30, 2022, the Company had one customer that represented 23% and 14%, respectively, of its aggregate net trade receivables and current contract asset values, primarily associated with the Company's Biologics segment. After performing a risk assessment of this customer, the Company has determined that a reserve is not warranted as of March 31, 2023. Additionally, the Company had two customers in its Biologics segment that each that represented approximately 11% of consolidated net revenue during the three months ended March 31, 2023. These same two customers represented 9% and 5% of net revenue in the three months ended March 31, 2022. |
Depreciation, Depletion, and Amortization | Depreciation Depreciation expense was $72 million and $66 million for the three months ended March 31, 2023 and 2022, respectively. Depreciation expense was $207 million and $188 million for the nine months ended March 31, 2023 and 2022, respectively. Depreciation expense includes amortization of assets related to finance leases. The Company charges repairs and maintenance costs to expense as incurred. Amortization Amortization expense related to other intangible assets was $34 million and $33 million for the three months ended March 31, 2023 and 2022, respectively. Amortization expense related to other intangible assets was $101 million and $90 million for the nine months ended March 31, 2023 and 2022, respectively. |
Research and Development Costs | Research and Development Costs The Company expenses research and development costs as incurred. Research and development costs amounted to $4 million and $6 million for the three months ended March 31, 2023 and 2022, respectively. Research and development costs amounted to $13 million and $18 million for the nine months ended March 31, 2023 and 2022, respectively. |
Marketable Securities | Marketable Securities The Company classifies its marketable securities as available-for-sale, because it may sell certain of its marketable securities prior to the stated maturity for various reasons, including management of liquidity, credit risk, duration, relative return, and asset allocation. The Company determines the fair value of each marketable security in its portfolio at each period end and recognizes gains and losses in the portfolio in other comprehensive income. As of March 31, 2023, all of the |
Recent Financial Accounting Standards | Recent Financial Accounting Standards New Accounting Standards Not Adopted as of March 31, 2023 In March 2020, the FASB issued Accounting Standards Update (“ASU”) 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides optional guidance to ease the potential burden in accounting for the discontinuation of a reference rate such as LIBOR, formerly known as the London Interbank Offered Rate, because of reference rate reform. In December 2022, the FASB issued ASU 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848, which delayed the effective date from December 31, 2022 to December 31, 2024. The Company is currently evaluating the impact of adopting this guidance on its consolidated financial statements. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Mar. 31, 2023 | Sep. 30, 2022 | Mar. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | Jun. 30, 2022 | |
Disaggregation of Revenue [Line Items] | ||||||
Net revenue | $ 1,037 | $ 1,015 | $ 1,273 | $ 3,208 | $ 3,515 | $ 4,802 |
Elimination of revenue attributable to multiple locations | (33) | (27) | $ (94) | (85) | ||
Revenue Recognition and Deferred Revenue [Abstract] | ||||||
Contractual Liabilities | The contract liabilities balances (current and non-current) as of March 31, 2023 and June 30, 2022 are as follows: (Dollars in millions) Balance at June 30, 2022 $ 220 Balance at March 31, 2023 $ 212 Revenue recognized in the period from amounts included in contracts liability at the beginning of the period: $ (120) | |||||
Geographical [Member] | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Disaggregation of Revenue | The following table allocates revenue by the location where the goods were made or the service performed: Three Months Ended Nine Months Ended (Dollars in millions) 2023 2022 2023 2022 United States $ 685 $ 847 $ 2,117 $ 2,270 Europe $ 306 373 936 1,095 Other $ 79 80 249 235 Elimination of revenue attributable to multiple locations $ (33) (27) (94) (85) Total $ 1,037 $ 1,273 $ 3,208 $ 3,515 | |||||
United States | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Net revenue | 685 | 847 | $ 2,117 | 2,270 | ||
Europe | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Net revenue | 306 | 373 | 936 | 1,095 | ||
International Other | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Net revenue | $ 79 | $ 80 | $ 249 | $ 235 | ||
Product and Service[Member] | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Disaggregation of Revenue | The following tables reflect net revenue for the three and nine months ended March 31, 2023 and 2022, by type of activity and reportable segment (in millions): Three Months Ended March 31, 2023 Biologics Pharma and Consumer Health Total Manufacturing & commercial product supply $ 133 $ 349 $ 482 Development services & clinical supply (1) 342 214 556 Total $ 475 $ 563 $ 1,038 Inter-segment revenue elimination (1) Combined net revenue $ 1,037 Three Months Ended March 31, 2022 Biologics Pharma and Consumer Health Total Manufacturing & commercial product supply $ 200 $ 368 $ 568 Development services & clinical supply 500 206 706 Total $ 700 $ 574 $ 1,274 Inter-segment revenue elimination (1) Combined net revenue $ 1,273 Nine Months Ended March 31, 2023 Biologics Pharma and Consumer Health Total Manufacturing & commercial product supply $ 303 $ 1,027 $ 1,330 Development services & clinical supply (1) 1,275 605 1,880 Total $ 1,578 $ 1,632 $ 3,210 Inter-segment revenue elimination (2) Combined net revenue $ 3,208 Nine Months Ended March 31, 2022 Biologics Pharma and Consumer Health Total Manufacturing & commercial product supply $ 503 $ 1,042 $ 1,545 Development services & clinical supply 1,386 587 1,973 Total $ 1,889 $ 1,629 $ 3,518 Inter-segment revenue elimination (3) Combined net revenue $ 3,515 |
Goodwill (Tables)
Goodwill (Tables) | 9 Months Ended |
Mar. 31, 2023 | |
Goodwill Disclosure [Abstract] | |
Goodwill - Rollforward | The following table summarizes the changes between June 30, 2022 and March 31, 2023 in the carrying amount of goodwill in total and by segment: (Dollars in millions) Biologics Pharma and Consumer Health Total Balance at June 30, 2022 (1) $ 1,535 $ 1,471 $ 3,006 Additions (2) — 216 216 Reallocation 16 (16) — Foreign currency translation adjustments 7 4 11 Impairment — (210) (210) Balance at March 31, 2023 $ 1,558 $ 1,465 $ 3,023 (1) As of result of the organizational realignments effective July 1, 2022, (described in Note 1, Basis of Presentation and Summary of Significant Accounting Policies ), the beginning balance presentation has been reclassified to conform with the current period reportable segments. All changes as a result of the organizational realignments are captured in the row labeled "reallocation." (2) The addition to goodwill is a result of the Metrics acquisition. For further details, see Note 4, Business Combinations. As part of the business reorganization discussed in Note 1, Basis of Presentation and Summary of Significant Accounting Policies , the goodwill from the previous Biologics, Softgel and Oral Technologies, Oral and Specialty Delivery, and Clinical Supply Services segments was reallocated between the current Biologics and Pharma and Consumer Health segments. Goodwill Impairment Charges The Company assessed the current and future economic outlook as of March 31, 2023 for its reporting units in its Pharma and Consumer Health and Biologics segments and identified an indicator for impairment of the goodwill previously recorded for one of the reporting units in its Pharma and Consumer Health segment. The evaluation began with a qualitative assessment of each reporting unit to determine if it was more likely than not that the fair value of the reporting unit was less than its carrying value. The qualitative assessment did not indicate that it was more likely than not that the fair value exceeded the carrying value in its Consumer Health reporting unit, which led to a quantitative assessment for each of the Company's reporting units. The Company estimated the fair value of its reporting units using a combination of the income and market approaches. In performing the goodwill impairment test, the Company used a long-term revenue growth rate of 3% and discount rates ranging from 9% to 10.50% in its estimation of fair value. The evaluation performed resulted in an impairment charge of $210 million with respect to the Consumer Health reporting unit. |
Long-Term Obligations and Other
Long-Term Obligations and Other Short-Term Borrowings (Tables) | 3 Months Ended | 9 Months Ended |
Mar. 31, 2023 | Mar. 31, 2023 | |
Debt Disclosure [Abstract] | ||
Long-Term Obligations, Presented Net of Issue Discounts and Fees Paid to Lenders, and Other Short-Term Borrowings | Long-term obligations and short-term borrowings consisted of the following at March 31, 2023 and June 30, 2022: (Dollars in millions) Maturity March 31, 2023 June 30, 2022 Senior secured credit facilities Term loan facility B-3 (6.813% as of March 31, 2023) February 2028 $ 1,422 $ 1,433 Revolving credit facility (1) (7.538% as of March 31, 2023) November 2027 550 — 5.000% senior notes due 2027 July 2027 500 500 2.375% Euro senior notes due 2028 (2) March 2028 895 874 3.125% senior notes due 2029 February 2029 550 550 3.500% senior notes due 2030 April 2030 650 650 Financing lease obligations 2023 to 2038 297 234 Other obligations (3) 2023 to 2028 26 2 Unamortized discount and debt issuance costs (41) (41) Total debt $ 4,849 $ 4,202 Less: current portion of long-term obligations and other short-term borrowings (1) 588 31 Long-term obligations, less current portion $ 4,261 $ 4,171 (1) During the nine months ended March 31, 2023, the Company drew down $715 million on its revolving credit facility to supplement operating cash flows and fund the Metrics acquisition, of which $165 million was repaid during the nine months ended March 31, 2023. The Company has elected to classify the borrowing on its revolving credit facility as current as it intends to repay a portion of the borrowing using cash flows from operations and/or refinance the borrowing within the next twelve months. (2) The change in the carrying value of this euro-denominated debt was due to fluctuations in foreign currency exchange rates. (3) The increase in other obligations is associated with $24 million in proceeds from a failed sale-leaseback transaction that occurred in the three months ended March 31, 2023. | |
Fair Value Disclosures [Abstract] | ||
Schedule Of Carrying And Fair Value Of Financial Instruments Table | The carrying amounts and the estimated fair values of the Company’s principal categories of debt as of March 31, 2023 and June 30, 2022 are as follows: March 31, 2023 June 30, 2022 (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 $ 493 $ 500 $ 483 2.375% Euro senior notes due 2028 Level 2 895 823 874 744 3.125% senior notes due 2029 Level 2 550 500 550 476 3.500% senior notes due 2030 Level 2 650 598 650 561 Senior secured credit facilities & other Level 2 2,295 2,079 1,669 1,575 Subtotal $ 4,890 $ 4,493 $ 4,243 $ 3,839 Unamortized discount and debt issuance (41) — (41) — Total debt $ 4,849 $ 4,493 $ 4,202 $ 3,839 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Mar. 31, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The reconciliations between basic and diluted earnings per share attributable to Catalent common shareholders for the three and nine months ended March 31, 2023 and 2022, respectively, are as follows: Three Months Ended Nine Months Ended (In millions except per share data) 2023 2022 2023 2022 Net (loss) earnings $ (227) $ 141 $ (146) $ 331 Less: Net earnings attributable to preferred shareholders — — — (15) Net (loss) earnings attributable to common shareholders $ (227) $ 141 $ (146) $ 316 Weighted average shares outstanding - basic 181 180 180 176 Weighted average dilutive securities issuable - stock plans — 1 — 1 Weighted average shares outstanding - diluted 181 181 180 177 (Loss) earnings per share: Basic $ (1.26) $ 0.78 $ (0.81) $ 1.81 Diluted $ (1.26) $ 0.78 $ (0.81) $ 1.79 |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | antidilutive effect on the weighted average shares outstanding for the three and nine months ended March 31, 2023 and 2022 were not material. |
Other Income and Expense (Table
Other Income and Expense (Tables) | 9 Months Ended |
Mar. 31, 2023 | |
Other Income and Expenses [Abstract] | |
Schedule of Other Nonoperating Income (Expense) | The components of other expense, net for the three and nine months ended March 31, 2023 and 2022 are as follows: Three Months Ended Nine Months Ended (Dollars in millions) 2023 2022 2023 2022 Debt financing costs (1) $ — $ — $ — $ 4 Foreign currency (gains) losses (2) (4) 4 (5) 28 Other (3) — (2) 3 (7) Total other (income) expense, net $ (4) $ 2 $ (2) $ 25 (1) Debt financing costs for the nine months ended March 31, 2022 includes $4 million of financing charges related to the $450 million aggregate principal amount of U.S. dollar-denominated term loans borrowed in that period under the Company’s senior secured credit facilities (together with all of the remaining U.S. dollar-denominated term loans outstanding, the “Term B-3 Loans”). (2) Foreign currency remeasurement gains/losses include both cash and non-cash transactions. |
Derivative Instruments and He_2
Derivative Instruments and Hedging Activities Net Investment Hedge Activity (Tables) | 9 Months Ended |
Mar. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Schedule of Net Investment Hedge in Accumulated Other Comprehensive Income (Loss) and Statement of Financial Performance | The following table summarizes net investment hedge activity during the three and nine months ended March 31, 2023 and 2022. Three Months Ended Nine Months Ended (Dollars in millions) 2023 2022 2023 2022 Unrealized foreign exchange gain (loss) within other comprehensive income $ (16) $ 28 $ (20) $ 90 Unrealized foreign exchange gain (loss) within statement of operations $ — $ — $ — $ (11) |
Schedule of Interest Rate Derivatives | A summary of the estimated fair value of the 2021 Rate Swap reported in the consolidated balance sheets is stated in the table below: March 31, 2023 June 30, 2022 (Dollars in millions) Balance Sheet Classification Estimated Fair Value Balance Sheet Classification Estimated Fair Value Interest-rate swap Other long-term assets $ 51 Other long-term assets $ 36 |
Fair Value Measures and Discl_2
Fair Value Measures and Disclosures (Tables) | 9 Months Ended |
Mar. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The following table sets forth the Company’s financial assets and liabilities that were measured at fair value on a recurring basis and the fair value measurement for such assets and liabilities at March 31, 2023 and June 30, 2022: (Dollars in millions) Basis of Fair Value Measurement March 31, 2023 Total Level 1 Level 2 Level 3 Assets: Interest-rate swap $ 51 $ — $ 51 $ — Trading securities 1 1 — — June 30, 2022 Assets: Marketable securities $ 89 $ 89 $ — $ — Interest-rate swap 36 — 36 — Trading securities 2 2 — — |
Employee Retirement Benefit P_2
Employee Retirement Benefit Plans (Tables) | 9 Months Ended |
Mar. 31, 2023 | |
Retirement Benefits [Abstract] | |
Components of Company's Net Periodic Benefit Costs | Components of the Company’s net periodic benefit costs are as follows: Three Months Ended Nine Months Ended (Dollars in millions) 2023 2022 2023 2022 Components of net periodic benefit cost: Selling, general, and administrative expenses: Service cost $ 1 $ 1 $ 3 $ 3 Other expense, net: Interest cost 3 1 7 3 Expected return on plan assets (2) (2) (6) (7) Amortization (1) — 1 — 3 Net amount recognized $ 2 $ 1 $ 4 $ 2 (1) Amount represents the amortization of unrecognized actuarial losses. |
Equity and Accumulated Other _2
Equity and Accumulated Other Comprehensive Income (Loss) (Tables) | 9 Months Ended |
Mar. 31, 2023 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of Comprehensive Income (Loss) | Accumulated Other Comprehensive Loss The components of the changes in the cumulative translation adjustment, derivatives and hedges, minimum pension liability, and marketable securities for the three and nine months ended March 31, 2023 and 2022 are presented below. Three Months Ended Nine Months Ended (Dollars in millions) 2023 2022 2023 2022 Foreign currency translation adjustments: Net investment hedge $ (16) $ 28 $ (20) $ 90 Long-term intercompany loans 9 (8) (1) (15) Translation adjustments 31 (36) 26 (109) Total foreign currency translation adjustment, pretax 24 (16) 5 (34) Tax (benefit) expense (3) 6 (5) 20 Total foreign currency translation adjustment, net of tax $ 27 $ (22) $ 10 $ (54) Net change in derivatives and hedges: Net (loss) gain recognized during the period $ (3) $ 23 $ 15 $ 28 Total derivatives and hedges, pretax (3) 23 15 28 Tax (benefit) expense (1) 6 3 7 Net change in derivatives and hedges, net of tax $ (2) $ 17 $ 12 $ 21 Net change in minimum pension liability: Net gain recognized during the period $ — $ 1 $ — $ 2 Total pension liability, pretax — 1 — 2 Tax benefit — — — — Net change in minimum pension liability, net of tax $ — $ 1 $ — $ 2 Net change in marketable securities: Net gain (loss) recognized during the period $ — $ (2) $ 1 $ (3) Amounts reclassified from accumulated other 2 — 4 — Net change in marketable securities, pretax 2 (2) 5 (3) Tax (benefit) expense — $ (1) 1 $ (1) Net change in marketable securities, net of tax $ 2 $ (1) $ 4 $ (2) |
Schedule of Accumulated Other Comprehensive Income (Loss) | For the three months ended March 31, 2023 and 2022, the changes in accumulated other comprehensive loss, net of tax by component are as follows: (Dollars in millions) Foreign Exchange Translation Adjustments Pension and Liability Adjustments Derivatives and Hedges Marketable Securities Other Total Balance at December 31, 2022 $ (395) $ (38) $ 41 $ (2) $ (1) $ (395) Other comprehensive income (loss) before 27 — (2) — — 25 Amounts reclassified from accumulated other — — — 2 — 2 Net current period other comprehensive income (loss) 27 — (2) 2 — 27 Balance at March 31, 2023 $ (368) $ (38) $ 39 $ — $ (1) $ (368) (Dollars in millions) Foreign Exchange Translation Adjustments Pension and Liability Adjustments Derivatives and Hedges Marketable Securities Other Total Balance at December 31, 2021 $ (300) $ (46) $ 4 $ (2) $ (1) $ (345) Other comprehensive (loss) income before (22) — 17 (1) — (6) Amounts reclassified from accumulated other — 1 — — — 1 Net current period other comprehensive (loss) income (22) 1 17 (1) — (5) Balance at March 31, 2022 $ (322) $ (45) $ 21 $ (3) $ (1) $ (350) For the nine months ended March 31, 2023 and 2022, the changes in accumulated other comprehensive loss, net of tax by component are as follows: (Dollars in millions) Foreign Exchange Translation Adjustments Pension and Liability Adjustments Derivatives and Hedges Marketable Securities Other Total Balance at June 30, 2022 $ (378) $ (38) $ 27 $ (4) $ (1) $ (394) Other comprehensive income before 10 — 12 — — 22 Amounts reclassified from accumulated other — — — 4 — 4 Net current period other comprehensive income 10 — 12 4 — 26 Balance at March 31, 2023 $ (368) $ (38) $ 39 $ — $ (1) $ (368) |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Mar. 31, 2023 | |
Segment Reporting [Abstract] | |
Reconciliation of Earnings/(Loss) from Continuing Operations to EBITDA | (Dollars in millions) Three Months Ended Nine Months Ended 2023 2022 2023 2022 Segment EBITDA reconciled to net (loss) earnings: Biologics $ 6 $ 218 $ 299 $ 584 Pharma and Consumer Health 125 144 368 390 Sub-Total $ 131 $ 362 $ 667 $ 974 Reconciling items to net earnings Unallocated costs (1) (256) (54) (394) (211) Depreciation and amortization (106) (99) (308) (278) Interest expense, net (51) (33) (130) (91) Income tax expense 55 (35) 19 (63) Net (loss) earnings $ (227) $ 141 $ (146) $ 331 (1) Unallocated costs include restructuring and special items, stock-based compensation, gain on sale of subsidiary, impairment charges, certain other corporate directed costs, and other costs that are not allocated to the segments as follows: (Dollars in millions) Three Months Ended March 31, Nine Months Ended 2023 2022 2023 2022 Impairment charges and gain/loss on sale of assets (a) $ (6) $ (2) $ (4) $ (21) Stock-based compensation (6) (10) (35) (42) Restructuring and other special items (b) (17) (12) (59) (43) Goodwill impairment charges (c) (210) — (210) — Gain on sale of subsidiary (d) — — — 1 Other income (expense), net (e) 4 (2) 2 (25) Unallocated corporate costs, net (21) (28) (88) (81) Total unallocated costs $ (256) $ (54) $ (394) $ (211) (a) Impairment charges and gain/loss on sale of assets during the nine months ended March 31, 2022 include fixed asset impairment charges associated with a product the Company no longer manufactures in its Pharma and Consumer Health segment. (b) Restructuring and other special items during the three months ended March 31, 2023 include (i) restructuring charges associated with plans to reduce costs, consolidate facilities, and optimize our infrastructure across the organization and (ii) transaction and integration costs associated with the Metrics acquisition. Restructuring and other special items for the nine months ended March 31, 2023 also includes warehouse exit costs for a product the Company no longer manufactures in its Pharma and Consumer Health segment. For further details on restructuring charges, see Note 9, Restructuring Costs . Restructuring and other special items during the three months ended March 31, 2022 include (i) integration costs primarily associated with the Bettera Wellness acquisition and (ii) unrealized losses on venture capital investments. Restructuring and other special items during the nine months ended March 31, 2022 also include transaction and integration costs associated with the Delphi Genetics S.A., Hepatic Cell Therapy Support S.A., RheinCell Therapeutics GmbH acquisitions and the Acorda Therapeutics, Inc. transaction. (c) Goodwill impairment charges during the three and nine months ended March 31, 2023 was associated with the Company’s Consumer Health reporting unit. For further details, see Note 5, Goodwill . (d) Gain on sale of subsidiary for the nine months ended March 31, 2022 was due to the sale of the Company’s facility in Woodstock, Illinois and the associated business. |
Total Assets for Each Segment and Reconciling in Consolidated Financial Statements | The following table includes total assets for each segment, as well as reconciling items necessary to total the amounts reported in the consolidated financial statements. (Dollars in millions) March 31, June 30, Assets: Biologics $ 5,904 $ 5,770 Pharma and Consumer Health 4,847 4,356 Corporate and eliminations 79 382 Total assets $ 10,830 $ 10,508 |
Supplemental Balance Sheet In_2
Supplemental Balance Sheet Information (Tables) | 9 Months Ended |
Mar. 31, 2023 | |
Balance Sheet Related Disclosures [Abstract] | |
Inventory | Inventories Work-in-process and inventories include raw materials, labor, and overhead. Total inventories consist of the following: (Dollars in millions) March 31, June 30, Raw materials and supplies $ 762 $ 651 Work-in-process 144 109 Total inventories, gross 906 760 Inventory cost adjustment (1) (162) (58) Total inventories $ 744 $ 702 |
Prepaid and Other Assets | Prepaid expenses and other Prepaid expenses and other consist of the following: (Dollars in millions) March 31, June 30, Prepaid expenses $ 70 $ 61 Short-term contract assets 488 398 Spare parts supplies 24 22 Prepaid income tax 35 27 Non-U.S. value-added tax 35 48 Other current assets 41 70 Total prepaid expenses and other $ 693 $ 626 |
Other Accrued Liabilities | Other accrued liabilities Other accrued liabilities consist of the following: (Dollars in millions) March 31, June 30, Contract liabilities $ 203 $ 211 Accrued employee-related expenses 132 198 Accrued expenses 111 140 Operating lease liabilities 11 14 Restructuring accrual 1 1 Accrued interest 24 32 Accrued income tax 23 50 Total other accrued liabilities $ 505 $ 646 |
Basis of Presentation and Sum_3
Basis of Presentation and Summary of Significant Accounting Policies Research and Development Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | |
Research and Development Expense [Abstract] | ||||
Research and Development Costs | Research and Development Costs The Company expenses research and development costs as incurred. Research and development costs amounted to $4 million and $6 million for the three months ended March 31, 2023 and 2022, respectively. Research and development costs amounted to $13 million and $18 million for the nine months ended March 31, 2023 and 2022, respectively. | |||
Research and Development Expense | $ 4 | $ 6 | $ 13 | $ 18 |
Basis of Presentation and Sum_4
Basis of Presentation and Summary of Significant Accounting Policies Concentrations of Credit Risk and Major Customers (Details) | 9 Months Ended | ||
Mar. 31, 2023 Rate | Mar. 31, 2022 | Jun. 30, 2022 Rate | |
Fair Value, Concentration of Risk, Financial Assets, Balance Sheet Groupings [Abstract] | |||
Concentration Risk, Credit Risk, Policy | 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, biopharmaceutical 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. As of March 31, 2023 and June 30, 2022, the Company had one customer that represented 23% and 14%, respectively, of its aggregate net trade receivables and current contract asset values, primarily associated with the Company's Biologics segment. After performing a risk assessment of this customer, the Company has determined that a reserve is not warranted as of March 31, 2023. Additionally, the Company had two customers in its Biologics segment that each that represented approximately 11% of consolidated net revenue during the three months ended March 31, 2023. These same two customers represented 9% and 5% of net revenue in the three months ended March 31, 2022. | ||
Percentage, trade receivables and current contract asset values, Net | 23% | 14% | |
Segment Reporting, Disclosure of Major Customers | 11 | 9 | |
Segment Reporting, Disclosure of Major Customer | 5% |
Basis of Presentation and Sum_5
Basis of Presentation and Summary of Significant Accounting Polices Depreciation (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | |
Depreciation, Depletion and Amortization [Abstract] | ||||
Depreciation, Depletion, and Amortization | Depreciation Depreciation expense was $72 million and $66 million for the three months ended March 31, 2023 and 2022, respectively. Depreciation expense was $207 million and $188 million for the nine months ended March 31, 2023 and 2022, respectively. Depreciation expense includes amortization of assets related to finance leases. The Company charges repairs and maintenance costs to expense as incurred. Amortization Amortization expense related to other intangible assets was $34 million and $33 million for the three months ended March 31, 2023 and 2022, respectively. Amortization expense related to other intangible assets was $101 million and $90 million for the nine months ended March 31, 2023 and 2022, respectively. | |||
Depreciation Cost | $ 72 | $ 66 | $ 207 | $ 188 |
Accounting Changes and Error _2
Accounting Changes and Error Corrections (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||
Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2023 | Mar. 31, 2022 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2021 | |
Accounting Changes and Error Corrections [Abstract] | |||||||||||||
Other Accrued Liabilities | $ 553,000,000 | $ 484,000,000 | $ 553,000,000 | $ 646,000,000 | $ 646,000,000 | ||||||||
Total current liabilities | $ 1,487,000,000 | 1,552,000,000 | 969,000,000 | 1,552,000,000 | $ 1,487,000,000 | 1,098,000,000 | 1,098,000,000 | ||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||||
Other Accrued Liabilities | 553,000,000 | 484,000,000 | 553,000,000 | 646,000,000 | 646,000,000 | ||||||||
Total current liabilities | 1,487,000,000 | 1,552,000,000 | 969,000,000 | 1,552,000,000 | 1,487,000,000 | 1,098,000,000 | 1,098,000,000 | ||||||
Total liabilities | 6,127,000,000 | 6,256,000,000 | 5,526,000,000 | 6,256,000,000 | 6,127,000,000 | 5,733,000,000 | 5,733,000,000 | ||||||
Retained earnings (Accumulated Deficit) | 599,000,000 | 599,000,000 | |||||||||||
Accumulated deficit | 372,000,000 | 518,000,000 | 372,000,000 | 518,000,000 | 518,000,000 | ||||||||
Equity, Attributable to Parent | 4,703,000,000 | 4,892,000,000 | 4,680,000,000 | 4,892,000,000 | 4,703,000,000 | 4,775,000,000 | 4,775,000,000 | ||||||
Prepaid expenses and other | 693,000,000 | 715,000,000 | 633,000,000 | 715,000,000 | 693,000,000 | 626,000,000 | 626,000,000 | ||||||
Assets, Current | 2,738,000,000 | 2,919,000,000 | 2,699,000,000 | 2,919,000,000 | 2,738,000,000 | 2,917,000,000 | 2,917,000,000 | ||||||
Deferred Income Tax Assets, Net | 42,000,000 | 42,000,000 | 49,000,000 | ||||||||||
Assets | 10,830,000,000 | 11,148,000,000 | 10,206,000,000 | 11,148,000,000 | 10,830,000,000 | 10,508,000,000 | 10,508,000,000 | ||||||
Liabilities and Equity | 10,830,000,000 | 11,148,000,000 | 10,206,000,000 | 11,148,000,000 | 10,830,000,000 | 10,508,000,000 | 10,508,000,000 | ||||||
Net revenue | 1,037,000,000 | 1,015,000,000 | $ 1,273,000,000 | 3,208,000,000 | $ 3,515,000,000 | 4,802,000,000 | |||||||
Gross margin | 180,000,000 | 251,000,000 | 423,000,000 | 825,000,000 | 1,152,000,000 | 1,614,000,000 | |||||||
Operating earnings | (235,000,000) | 53,000,000 | 211,000,000 | (37,000,000) | 510,000,000 | 730,000,000 | |||||||
Deferred Tax Liabilities, Gross | 119,000,000 | 216,000,000 | 208,000,000 | 216,000,000 | 119,000,000 | 197,000,000 | |||||||
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | (282,000,000) | (4,000,000) | 176,000,000 | (165,000,000) | 394,000,000 | 579,000,000 | |||||||
Income tax expense(benefit) | (55,000,000) | 34,000,000 | 1,000,000 | 35,000,000 | (19,000,000) | 63,000,000 | 80,000,000 | ||||||
Net earnings/(loss) | (227,000,000) | $ 80,000,000 | $ (5,000,000) | 141,000,000 | (146,000,000) | 331,000,000 | 499,000,000 | ||||||
Participating Securities, Distributed and Undistributed Earnings (Loss), Basic | 0 | 0 | 0 | (15,000,000) | |||||||||
Net Income (Loss) Available to Common Stockholders, Basic | $ (227,000,000) | $ 141,000,000 | $ (146,000,000) | $ 316,000,000 | $ 483,000,000 | ||||||||
Earnings Per Share, Basic | $ (1.26) | $ 440,000 | $ (0.03) | $ 0.78 | $ (0.81) | $ 1.81 | $ 2.74 | ||||||
Earnings Per Share, Diluted | $ (1.26) | $ (0.03) | $ 0.78 | $ (0.81) | $ 1.79 | $ 2.73 | |||||||
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest | $ (200,000,000) | $ 199,000,000 | $ (125,000,000) | $ 136,000,000 | $ (120,000,000) | $ 298,000,000 | $ 422,000,000 | ||||||
Net earnings/(loss) | (5,000,000) | 75,000,000 | (146,000,000) | 331,000,000 | |||||||||
Provision/(benefit) for deferred income taxes | 12,000,000 | 69,000,000 | (13,000,000) | (9,000,000) | |||||||||
Other assets/accrued liabilities, net — current and non-current | (150,000,000) | (174,000,000) | (245,000,000) | (293,000,000) | (423,000,000) | ||||||||
Net cash provided by operating activities | 58,000,000 | 370,000,000 | |||||||||||
Net Cash Provided by (Used in) Investing Activities | (834,000,000) | (1,490,000,000) | |||||||||||
Net Cash Provided by (Used in) Financing Activities | 572,000,000 | 1,030,000,000 | |||||||||||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect | (197,000,000) | (110,000,000) | |||||||||||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 252,000,000 | 786,000,000 | 252,000,000 | 786,000,000 | 449,000,000 | $ 896,000,000 | |||||||
Stock Issued During Period, Value, Conversion of Convertible Securities | 362,000,000 | ||||||||||||
Share issuances related to stock-based compensation | 35,000,000 | 42,000,000 | |||||||||||
Cash paid, in lieu of equity, for tax withholding | 9,000,000 | ||||||||||||
Proceeds from Stock Options Exercised | (4,000,000) | (21,000,000) | |||||||||||
APIC, Share-based Payment Arrangement, ESPP, Increase for Cost Recognition | 2,000,000 | 3,000,000 | 9,000,000 | ||||||||||
Dividends, Preferred Stock | 6,000,000 | ||||||||||||
Other Comprehensive Income (Loss), Net of Tax | 27,000,000 | (5,000,000) | 26,000,000 | (33,000,000) | |||||||||
Inventories | 744,000,000 | 744,000,000 | 702,000,000 | ||||||||||
Inter-segment revenue elimination | (1,000,000) | (1,000,000) | 0 | (1,000,000) | $ (1,000,000) | $ (1,000,000) | (1,000,000) | $ (2,000,000) | (2,000,000) | (3,000,000) | |||
Revenue | 1,149,000,000 | 1,022,000,000 | 1,217,000,000 | 1,025,000,000 | 2,171,000,000 | 2,242,000,000 | |||||||
Cost of sales | 857,000,000 | 850,000,000 | 2,383,000,000 | 2,363,000,000 | |||||||||
Deferred Tax Liabilities, Tax Deferred Income | 197,000,000 | ||||||||||||
Total liabilities | 6,127,000,000 | 6,256,000,000 | 5,526,000,000 | 6,256,000,000 | 6,127,000,000 | 5,733,000,000 | 5,733,000,000 | ||||||
Accumulated deficit | 372,000,000 | 518,000,000 | 372,000,000 | 518,000,000 | 518,000,000 | ||||||||
Equity, Attributable to Parent | 4,703,000,000 | 4,892,000,000 | 4,680,000,000 | 4,892,000,000 | 4,703,000,000 | 4,775,000,000 | 4,775,000,000 | ||||||
Inventories | 744,000,000 | 744,000,000 | 702,000,000 | ||||||||||
Biologics | |||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||||
Assets | 5,904,000,000 | 5,904,000,000 | 5,770,000,000 | ||||||||||
Net revenue | 475,000,000 | 700,000,000 | 1,578,000,000 | 1,889,000,000 | |||||||||
Revenue | 580,000,000 | 523,000,000 | 641,000,000 | 548,000,000 | 1,103,000,000 | 1,189,000,000 | |||||||
Biologics | Manufacturing & Commercial Product Supply | |||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||||
Net revenue | 133,000,000 | 200,000,000 | 303,000,000 | 503,000,000 | |||||||||
Revenue | 75,000,000 | 94,000,000 | 169,000,000 | 134,000,000 | 169,000,000 | 303,000,000 | |||||||
Biologics | Development Services | |||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||||
Net revenue | 342,000,000 | 500,000,000 | 1,275,000,000 | 1,386,000,000 | |||||||||
Revenue | 505,000,000 | 429,000,000 | 472,000,000 | 414,000,000 | 934,000,000 | 886,000,000 | |||||||
PharmaConsumerHealth | |||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||||
Assets | 4,847,000,000 | 4,847,000,000 | 4,356,000,000 | ||||||||||
Net revenue | 563,000,000 | 574,000,000 | 1,632,000,000 | 1,629,000,000 | |||||||||
Revenue | 570,000,000 | 499,000,000 | 577,000,000 | 478,000,000 | 1,069,000,000 | 1,055,000,000 | |||||||
PharmaConsumerHealth | Manufacturing & Commercial Product Supply | |||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||||
Net revenue | 349,000,000 | 368,000,000 | 1,027,000,000 | 1,042,000,000 | |||||||||
Revenue | 364,000,000 | 314,000,000 | 381,000,000 | 293,000,000 | 678,000,000 | 674,000,000 | |||||||
PharmaConsumerHealth | Development Services | |||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||||
Net revenue | 214,000,000 | 206,000,000 | 605,000,000 | 587,000,000 | |||||||||
Revenue | 206,000,000 | 196,000,000 | 185,000,000 | 391,000,000 | 381,000,000 | ||||||||
Total Catalent before inter-segment revenue elimination | |||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||||
Net revenue | 1,038,000,000 | 1,274,000,000 | 3,210,000,000 | 3,518,000,000 | |||||||||
Revenue | 1,150,000,000 | 1,022,000,000 | 1,218,000,000 | 1,026,000,000 | 2,172,000,000 | 2,244,000,000 | |||||||
Total Catalent before inter-segment revenue elimination | Manufacturing & Commercial Product Supply | |||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||||
Net revenue | 482,000,000 | 568,000,000 | 1,330,000,000 | 1,545,000,000 | |||||||||
Revenue | 439,000,000 | 408,000,000 | 550,000,000 | 427,000,000 | 847,000,000 | 977,000,000 | |||||||
Total Catalent before inter-segment revenue elimination | Development Services | |||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||||
Net revenue | $ 556,000,000 | $ 706,000,000 | $ 1,880,000,000 | $ 1,973,000,000 | |||||||||
Revenue | 711,000,000 | $ 668,000,000 | $ 599,000,000 | 1,325,000,000 | $ 1,267,000,000 | ||||||||
Previously Reported | |||||||||||||
Accounting Changes and Error Corrections [Abstract] | |||||||||||||
Other Accrued Liabilities | 527,000,000 | 458,000,000 | 527,000,000 | 620,000,000 | 620,000,000 | ||||||||
Total current liabilities | 1,526,000,000 | 943,000,000 | 1,526,000,000 | 1,072,000,000 | 1,072,000,000 | ||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||||
Other Accrued Liabilities | 527,000,000 | 458,000,000 | 527,000,000 | 620,000,000 | 620,000,000 | ||||||||
Total current liabilities | 1,526,000,000 | 943,000,000 | 1,526,000,000 | 1,072,000,000 | 1,072,000,000 | ||||||||
Total liabilities | 6,235,000,000 | 5,505,000,000 | 6,235,000,000 | 5,712,000,000 | 5,712,000,000 | ||||||||
Accumulated deficit | 619,000,000 | 538,000,000 | 619,000,000 | 538,000,000 | 538,000,000 | ||||||||
Equity, Attributable to Parent | 4,912,000,000 | 4,700,000,000 | 4,912,000,000 | 4,795,000,000 | 4,795,000,000 | ||||||||
Prepaid expenses and other | 714,000,000 | 632,000,000 | 714,000,000 | 625,000,000 | 625,000,000 | ||||||||
Assets, Current | 2,918,000,000 | 2,698,000,000 | 2,918,000,000 | 2,916,000,000 | 2,916,000,000 | ||||||||
Assets | 11,147,000,000 | 10,205,000,000 | 11,147,000,000 | 10,507,000,000 | 10,507,000,000 | ||||||||
Liabilities and Equity | 11,147,000,000 | 10,205,000,000 | 11,147,000,000 | 10,507,000,000 | |||||||||
Net revenue | 1,022,000,000 | 2,171,000,000 | 4,828,000,000 | ||||||||||
Gross margin | 258,000,000 | 645,000,000 | 1,640,000,000 | ||||||||||
Operating earnings | 60,000,000 | 198,000,000 | 756,000,000 | ||||||||||
Deferred Tax Liabilities, Gross | 221,000,000 | 214,000,000 | 221,000,000 | 202,000,000 | 202,000,000 | ||||||||
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | 3,000,000 | 117,000,000 | 605,000,000 | ||||||||||
Income tax expense(benefit) | 33,000,000 | 3,000,000 | 36,000,000 | 86,000,000 | |||||||||
Net earnings/(loss) | $ 81,000,000 | $ 0 | $ 81,000,000 | 519,000,000 | |||||||||
Net Income (Loss) Available to Common Stockholders, Basic | $ 503,000,000 | ||||||||||||
Earnings Per Share, Basic | $ 450,000 | $ 0 | $ 450,000 | $ 2.85 | |||||||||
Earnings Per Share, Diluted | $ 0 | $ 450,000 | $ 2.84 | ||||||||||
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest | $ 200,000,000 | $ (120,000,000) | $ 80,000,000 | $ 442,000,000 | |||||||||
Net earnings/(loss) | 0 | 81,000,000 | |||||||||||
Provision/(benefit) for deferred income taxes | 13,000,000 | 14,000,000 | |||||||||||
Other assets/accrued liabilities, net — current and non-current | (155,000,000) | (181,000,000) | (448,000,000) | ||||||||||
Total liabilities | 6,235,000,000 | 5,505,000,000 | 6,235,000,000 | 5,712,000,000 | 5,712,000,000 | ||||||||
Accumulated deficit | 619,000,000 | 538,000,000 | 619,000,000 | 538,000,000 | 538,000,000 | ||||||||
Equity, Attributable to Parent | 4,912,000,000 | 4,700,000,000 | 4,912,000,000 | 4,795,000,000 | 4,795,000,000 | ||||||||
Restatement Adjustment | |||||||||||||
Accounting Changes and Error Corrections [Abstract] | |||||||||||||
Other Accrued Liabilities | 26,000,000 | 26,000,000 | 26,000,000 | 26,000,000 | 26,000,000 | ||||||||
Total current liabilities | 26,000,000 | 26,000,000 | 26,000,000 | 26,000,000 | 26,000,000 | ||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||||
Other Accrued Liabilities | 26,000,000 | 26,000,000 | 26,000,000 | 26,000,000 | 26,000,000 | ||||||||
Total current liabilities | 26,000,000 | 26,000,000 | 26,000,000 | 26,000,000 | 26,000,000 | ||||||||
Total liabilities | 21,000,000 | 21,000,000 | 21,000,000 | 21,000,000 | 21,000,000 | ||||||||
Accumulated deficit | (20,000,000) | (20,000,000) | (20,000,000) | (20,000,000) | (20,000,000) | ||||||||
Equity, Attributable to Parent | (20,000,000) | (20,000,000) | (20,000,000) | (20,000,000) | (20,000,000) | ||||||||
Prepaid expenses and other | 1,000,000 | 1,000,000 | 1,000,000 | 1,000,000 | 1,000,000 | ||||||||
Assets, Current | 1,000,000 | 1,000,000 | 1,000,000 | 1,000,000 | 1,000,000 | ||||||||
Assets | 1,000,000 | 1,000,000 | 1,000,000 | 1,000,000 | 1,000,000 | ||||||||
Liabilities and Equity | 1,000,000 | 1,000,000 | 1,000,000 | 1,000,000 | |||||||||
Net revenue | (7,000,000) | (7,000,000) | (26,000,000) | ||||||||||
Gross margin | (7,000,000) | (7,000,000) | (26,000,000) | ||||||||||
Operating earnings | (7,000,000) | (7,000,000) | (26,000,000) | ||||||||||
Income tax expense(benefit) | 1,000,000 | (2,000,000) | (1,000,000) | (6,000,000) | |||||||||
Net earnings/(loss) | $ (1,000,000) | $ (5,000,000) | $ (6,000,000) | (20,000,000) | |||||||||
Net Income (Loss) Available to Common Stockholders, Basic | $ (20,000,000) | ||||||||||||
Earnings Per Share, Basic | $ (10,000) | $ (0.03) | $ (30,000) | $ (0.11) | |||||||||
Earnings Per Share, Diluted | $ (0.03) | $ (30,000) | $ (0.11) | ||||||||||
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest | $ (1,000,000) | $ (5,000,000) | $ (20,000,000) | ||||||||||
Net earnings/(loss) | (5,000,000) | $ (6,000,000) | |||||||||||
Provision/(benefit) for deferred income taxes | (1,000,000) | (5,000,000) | |||||||||||
Other assets/accrued liabilities, net — current and non-current | 5,000,000 | 7,000,000 | 25,000,000 | ||||||||||
Total liabilities | 21,000,000 | 21,000,000 | 21,000,000 | 21,000,000 | 21,000,000 | ||||||||
Accumulated deficit | (20,000,000) | (20,000,000) | (20,000,000) | (20,000,000) | (20,000,000) | ||||||||
Equity, Attributable to Parent | (20,000,000) | (20,000,000) | (20,000,000) | (20,000,000) | (20,000,000) | ||||||||
Revision of Prior Period, Adjustment [Member] | |||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||||
Deferred Tax Liabilities, Gross | $ (5,000,000) | (5,000,000) | (5,000,000) | (5,000,000) | $ (5,000,000) | ||||||||
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | $ (7,000,000) | $ (7,000,000) | $ (26,000,000) |
Revenue from Contract with Cust
Revenue from Contract with Customer (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||||||
Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2023 | Mar. 31, 2022 | Jun. 30, 2022 | |
Disaggregation of Revenue [Line Items] | |||||||||||
Net revenue | $ 1,037 | $ 1,015 | $ 1,273 | $ 3,208 | $ 3,515 | $ 4,802 | |||||
Inter-segment revenue elimination | (1) | $ (1) | $ 0 | (1) | $ (1) | $ (1) | $ (1) | $ (2) | (2) | (3) | |
Biologics | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net revenue | 475 | 700 | 1,578 | 1,889 | |||||||
PharmaConsumerHealth | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net revenue | 563 | 574 | 1,632 | 1,629 | |||||||
Manufacturing & Commercial Product Supply | Biologics | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net revenue | 133 | 200 | 303 | 503 | |||||||
Manufacturing & Commercial Product Supply | PharmaConsumerHealth | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net revenue | 349 | 368 | 1,027 | 1,042 | |||||||
Development Services | Biologics | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net revenue | 342 | 500 | 1,275 | 1,386 | |||||||
Development Services | PharmaConsumerHealth | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net revenue | $ 214 | $ 206 | $ 605 | $ 587 |
Revenue Recognition Disaggregat
Revenue Recognition Disaggregation of Revenue by type of activity and reporting segment (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||||||
Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2023 | Mar. 31, 2022 | Jun. 30, 2022 | |
Disaggregation of Revenue [Line Items] | |||||||||||
Inter-segment revenue elimination | $ (1) | $ (1) | $ 0 | $ (1) | $ (1) | $ (1) | $ (1) | $ (2) | $ (2) | $ (3) | |
Net revenue | 1,037 | $ 1,015 | $ 1,273 | 3,208 | $ 3,515 | $ 4,802 | |||||
Greater Than One Year Member [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue, Remaining Performance Obligation, Percentage to be recognized over the next six months | 21% | 21% | |||||||||
Biologics | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net revenue | 475 | $ 700 | 1,578 | $ 1,889 | |||||||
Biologics | Manufacturing & Commercial Product Supply | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net revenue | 133 | 200 | 303 | 503 | |||||||
Biologics | Development Services | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net revenue | 342 | 500 | 1,275 | 1,386 | |||||||
PharmaConsumerHealth | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net revenue | 563 | 574 | 1,632 | 1,629 | |||||||
PharmaConsumerHealth | Manufacturing & Commercial Product Supply | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net revenue | 349 | 368 | 1,027 | 1,042 | |||||||
PharmaConsumerHealth | Development Services | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net revenue | 214 | 206 | 605 | 587 | |||||||
Total Catalent before inter-segment revenue elimination | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net revenue | 1,038 | 1,274 | 3,210 | 3,518 | |||||||
Total Catalent before inter-segment revenue elimination | Manufacturing & Commercial Product Supply | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net revenue | 482 | 568 | 1,330 | 1,545 | |||||||
Total Catalent before inter-segment revenue elimination | Development Services | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net revenue | $ 556 | $ 706 | $ 1,880 | $ 1,973 |
Revenue Recognition Disaggreg_2
Revenue Recognition Disaggregation of Revenue by Geography (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Mar. 31, 2023 | Sep. 30, 2022 | Mar. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | Jun. 30, 2022 | |
Disaggregation of Revenue [Line Items] | ||||||
Elimination of revenue attributable to multiple locations | $ (33) | $ (27) | $ (94) | $ (85) | ||
Net revenue | 1,037 | $ 1,015 | 1,273 | 3,208 | 3,515 | $ 4,802 |
United States | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Net revenue | 685 | 847 | 2,117 | 2,270 | ||
Europe | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Net revenue | 306 | 373 | 936 | 1,095 | ||
International Other | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Net revenue | $ 79 | $ 80 | $ 249 | $ 235 |
Revenue Recognition Contractual
Revenue Recognition Contractual Liabilities (Details) - USD ($) $ in Millions | 9 Months Ended | |
Mar. 31, 2023 | Jun. 30, 2022 | |
Revenue Recognition and Deferred Revenue [Abstract] | ||
Contract with Customer, Liability | $ 212 | $ 220 |
Contract with Customer, Liability, Revenue Recognized | (120) | |
Revenue, Remaining Performance Obligation, Amount | $ 342 |
Revenue Recognition Contractu_2
Revenue Recognition Contractual Assets (Detail) - USD ($) | 3 Months Ended | |
Mar. 31, 2023 | Jun. 30, 2022 | |
Text Block [Abstract] | ||
Contract with Customer, Asset, Purchase | $ 505,000,000 | $ 441,000,000 |
Increase (Decrease) in Contract with Customer, Asset | 64,000,000 | |
Increase (Decrease) in Contract with Customer, Asset percent | $ 0.15 |
Business Combinations Acquisiti
Business Combinations Acquisition Purchase Agreement (Details) - USD ($) $ in Millions | 9 Months Ended | ||
Oct. 01, 2021 | Mar. 31, 2023 | Mar. 31, 2022 | |
Business Acquisition [Line Items] | |||
Payments to Acquire Businesses, Net of Cash Acquired | $ 474 | $ 1,033 | |
Bettera Holdings, LLC | |||
Business Acquisition [Line Items] | |||
Payments to Acquire Businesses, Net of Cash Acquired | $ 1,000 |
Business Combinations Net Asset
Business Combinations Net Assets Acquired (Details) - USD ($) $ in Millions | 9 Months Ended | |||
Oct. 01, 2022 | Oct. 01, 2021 | Mar. 31, 2023 | Mar. 31, 2022 | |
Net Assets Acquired from Business Combinations | ||||
Payments to Acquire Businesses, Net of Cash Acquired | $ 474 | $ 1,033 | ||
Goodwill, Acquired During Period | 216 | |||
Payments to Acquire Businesses, Net of Cash Acquired | $ 474 | $ 1,033 | ||
Bettera Holdings, LLC | ||||
Net Assets Acquired from Business Combinations | ||||
Payments to Acquire Businesses, Net of Cash Acquired | $ 1,000 | |||
Payments to Acquire Businesses, Net of Cash Acquired | $ 1,000 | |||
Metrics | ||||
Net Assets Acquired from Business Combinations | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment | $ 195 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 52 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Receivables | 15 | |||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net | 474 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Inventory | 5 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities | 9 | |||
Business Combination, Consideration Transferred | 474 | |||
Goodwill, Acquired During Period | 216 | |||
Metrics | Customer Relationships [Member] | ||||
Net Assets Acquired from Business Combinations | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $ 52 |
Business Combinations, Divestit
Business Combinations, Divestitures (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | ||
Business Acquisition, Contingent Consideration [Line Items] | |||||
Payments for (Proceeds from) Businesses and Interest in Affiliates | [1] | $ 0 | $ 0 | $ 0 | $ 1 |
Goodwill, Acquired During Period | $ 216 | ||||
[1]Gain on sale of subsidiary for the nine months ended March 31, 2022 |
Goodwill - Rollforward (Detail)
Goodwill - Rollforward (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||||||
Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2023 | Mar. 31, 2022 | Jun. 30, 2022 | |
Goodwill [Roll Forward] | |||||||||||
Beginning balance | $ 3,006 | $ 3,006 | $ 3,006 | ||||||||
Goodwill, Acquired During Period | 216 | ||||||||||
Goodwill, Transfers | 0 | ||||||||||
Foreign currency translation adjustments | 11 | ||||||||||
Ending balance | $ 3,023 | $ 3,023 | $ 3,006 | ||||||||
Goodwill Input, Discount Rate Minimum, Percentage | 10.50% | 10.50% | |||||||||
Net revenue | $ 1,037 | 1,015 | $ 1,273 | $ 3,208 | $ 3,515 | 4,802 | |||||
Inter-segment revenue elimination | $ (1) | $ (1) | 0 | (1) | $ (1) | $ (1) | (1) | $ (2) | $ (2) | (3) | |
Goodwill Inputs Long Term Revenue Growth Rate, Percentage | 3% | 3% | |||||||||
Goodwill Input, Discount Rate Minimum, Percentage | 10.50% | 10.50% | |||||||||
Goodwill Input Discount Rate Minimum, Percentage | 9% | 9% | |||||||||
Goodwill, Impairment Loss | $ (210) | 0 | $ (210) | 0 | |||||||
Biologics | |||||||||||
Goodwill [Roll Forward] | |||||||||||
Beginning balance | 1,535 | 1,535 | 1,535 | ||||||||
Goodwill, Acquired During Period | 0 | ||||||||||
Goodwill, Transfers | 16 | ||||||||||
Foreign currency translation adjustments | 7 | ||||||||||
Ending balance | 1,558 | 1,558 | 1,535 | ||||||||
Net revenue | 475 | 700 | 1,578 | 1,889 | |||||||
Biologics | Manufacturing & Commercial Product Supply | |||||||||||
Goodwill [Roll Forward] | |||||||||||
Net revenue | 133 | 200 | 303 | 503 | |||||||
Biologics | Development Services | |||||||||||
Goodwill [Roll Forward] | |||||||||||
Net revenue | 342 | 500 | 1,275 | 1,386 | |||||||
PharmaConsumerHealth | |||||||||||
Goodwill [Roll Forward] | |||||||||||
Beginning balance | $ 1,471 | $ 1,471 | 1,471 | ||||||||
Goodwill, Acquired During Period | 216 | ||||||||||
Goodwill, Transfers | (16) | ||||||||||
Foreign currency translation adjustments | 4 | ||||||||||
Ending balance | 1,465 | 1,465 | $ 1,471 | ||||||||
Net revenue | 563 | 574 | 1,632 | 1,629 | |||||||
Goodwill, Impairment Loss | (210) | 0 | (210) | 0 | |||||||
PharmaConsumerHealth | Manufacturing & Commercial Product Supply | |||||||||||
Goodwill [Roll Forward] | |||||||||||
Net revenue | 349 | 368 | 1,027 | 1,042 | |||||||
PharmaConsumerHealth | Development Services | |||||||||||
Goodwill [Roll Forward] | |||||||||||
Net revenue | 214 | 206 | 605 | 587 | |||||||
Total Catalent before inter-segment revenue elimination | |||||||||||
Goodwill [Roll Forward] | |||||||||||
Net revenue | 1,038 | 1,274 | 3,210 | 3,518 | |||||||
Total Catalent before inter-segment revenue elimination | Manufacturing & Commercial Product Supply | |||||||||||
Goodwill [Roll Forward] | |||||||||||
Net revenue | 482 | 568 | 1,330 | 1,545 | |||||||
Total Catalent before inter-segment revenue elimination | Development Services | |||||||||||
Goodwill [Roll Forward] | |||||||||||
Net revenue | $ 556 | $ 706 | $ 1,880 | $ 1,973 |
Other Intangibles, Net (Detail)
Other Intangibles, Net (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | |
Intangible Assets Disclosure [Abstract] | ||||
Amortization expense | $ 34 | $ 33 | $ 101 | $ 90 |
Long-Term Obligations and Oth_2
Long-Term Obligations and Other Short-Term Borrowings - Long-Term Obligations, Presented Net of Issue Discounts and Fees Paid to Lenders, and Other Short-Term Borrowings (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2023 | Jun. 30, 2022 | ||
Schedule Of Debt [Line Items] | ||||
Total long-term debt | $ 4,849 | $ 4,849 | $ 4,202 | |
Debt, Current | 588 | 588 | 31 | |
Long-term obligations, less current portion | 4,261 | 4,261 | 4,171 | |
Line of Credit, Current | 715 | 715 | ||
Debt Instrument, Unused Borrowing Capacity, Amount | 546 | 546 | ||
Letters of Credit Outstanding, Amount | 4 | 4 | ||
Repayments of Lines of Credit | 165 | |||
Sale and Leaseback Transaction, Gain (Loss), Net | 24 | |||
Term loan facility B-3 U.S. dollar-denominated | ||||
Schedule Of Debt [Line Items] | ||||
Total long-term debt | $ 1,422 | $ 1,422 | 1,433 | |
Debt Instrument, Basis Spread on Variable Rate | 1.75% | 2.25% | ||
Term loan facility B-3 U.S. dollar-denominated | Minimum [Member] | ||||
Schedule Of Debt [Line Items] | ||||
Debt Instrument, Basis Spread on Variable Rate | 0.75% | |||
Revolving Credit Facility - Two | ||||
Schedule Of Debt [Line Items] | ||||
Total long-term debt | $ 550 | $ 550 | 0 | |
U.S Dollar-denominated 5.00% Senior Notes [Member] | ||||
Schedule Of Debt [Line Items] | ||||
Total long-term debt | $ 500 | $ 500 | ||
Debt Instrument, Interest Rate, Stated Percentage | 5% | 5% | ||
Capital lease obligations | ||||
Schedule Of Debt [Line Items] | ||||
Total long-term debt | $ 297 | $ 297 | 234 | |
Other obligations | ||||
Schedule Of Debt [Line Items] | ||||
Total long-term debt | 26 | 26 | 2 | |
Estimate of Fair Value Measurement [Member] | ||||
Schedule Of Debt [Line Items] | ||||
Total long-term debt | 4,493 | 4,493 | 3,839 | |
Debt Instrument, Fair Value Disclosure | 4,493 | 4,493 | 3,839 | |
Estimate of Fair Value Measurement [Member] | Debt Issuance Costs | ||||
Schedule Of Debt [Line Items] | ||||
Total long-term debt | 0 | 0 | 0 | |
Carrying Value [Member] | ||||
Schedule Of Debt [Line Items] | ||||
Total long-term debt | 4,849 | 4,849 | 4,202 | |
Debt Instrument, Fair Value Disclosure | 4,890 | 4,890 | 4,243 | |
Carrying Value [Member] | Debt Issuance Costs | ||||
Schedule Of Debt [Line Items] | ||||
Total long-term debt | 41 | 41 | 41 | |
Fair Value, Inputs, Level 2 [Member] | Estimate of Fair Value Measurement [Member] | U.S Dollar-denominated 5.00% Senior Notes [Member] | ||||
Schedule Of Debt [Line Items] | ||||
Debt Instrument, Fair Value Disclosure | 493 | 493 | 483 | |
Fair Value, Inputs, Level 2 [Member] | Estimate of Fair Value Measurement [Member] | 2.375% Senior Euro Denominated Notes [Member] | ||||
Schedule Of Debt [Line Items] | ||||
Debt Instrument, Fair Value Disclosure | 823 | 823 | 744 | |
Fair Value, Inputs, Level 2 [Member] | Estimate of Fair Value Measurement [Member] | 3.125% Senior US Denominated Notes | ||||
Schedule Of Debt [Line Items] | ||||
Debt Instrument, Fair Value Disclosure | 500 | 500 | 476 | |
Fair Value, Inputs, Level 2 [Member] | Estimate of Fair Value Measurement [Member] | 3.500% Senior US Denominated Notes | ||||
Schedule Of Debt [Line Items] | ||||
Debt Instrument, Fair Value Disclosure | 598 | 598 | 561 | |
Fair Value, Inputs, Level 2 [Member] | Carrying Value [Member] | U.S Dollar-denominated 5.00% Senior Notes [Member] | ||||
Schedule Of Debt [Line Items] | ||||
Debt Instrument, Fair Value Disclosure | 500 | 500 | 500 | |
Fair Value, Inputs, Level 2 [Member] | Carrying Value [Member] | 2.375% Senior Euro Denominated Notes [Member] | ||||
Schedule Of Debt [Line Items] | ||||
Debt Instrument, Fair Value Disclosure | [1] | 895 | 895 | 874 |
Fair Value, Inputs, Level 2 [Member] | Carrying Value [Member] | 3.125% Senior US Denominated Notes | ||||
Schedule Of Debt [Line Items] | ||||
Debt Instrument, Fair Value Disclosure | 550 | 550 | 550 | |
Fair Value, Inputs, Level 2 [Member] | Carrying Value [Member] | 3.500% Senior US Denominated Notes | ||||
Schedule Of Debt [Line Items] | ||||
Debt Instrument, Fair Value Disclosure | $ 650 | $ 650 | $ 650 | |
[1]The change in the carrying value of this euro-denominated debt was due to fluctuations in foreign currency exchange rates.(3) The increase in other obligations is associated with $24 million in proceeds from a failed sale-leaseback transaction that occurred in the three months ended March 31, 2023. |
Long-Term Obligations and Oth_3
Long-Term Obligations and Other Short-Term Borrowings Long-Term Obligations and Other Short-Term Borrowings (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2023 | Jun. 30, 2022 | |
Debt Instrument [Line Items] | |||
Total long-term debt | $ 4,849 | $ 4,849 | $ 4,202 |
Other Short-Term Borrowings | 550 | 550 | |
U.S Dollar-denominated 5.00% Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Total long-term debt | $ 500 | $ 500 | |
Debt Instrument, Interest Rate, Stated Percentage | 5% | 5% | |
Term loan facility B-3 U.S. dollar-denominated | |||
Debt Instrument [Line Items] | |||
Total long-term debt | $ 1,422 | $ 1,422 | 1,433 |
Debt Instrument, Basis Spread on Variable Rate | 1.75% | 2.25% | |
Term loan facility B-3 U.S. dollar-denominated | Minimum [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Basis Spread on Variable Rate | 0.75% | ||
Term loan facility B-3 U.S. dollar-denominated | Maximum [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Basis Spread on Variable Rate | 1.25% | ||
Revolving Credit Facility - Two | |||
Debt Instrument [Line Items] | |||
Total long-term debt | $ 550 | $ 550 | $ 0 |
Revolving Credit Commitments | |||
Debt Instrument [Line Items] | |||
Total long-term debt | $ 1,100 | $ 1,100 |
Long-Term Obligations and Oth_4
Long-Term Obligations and Other Short-Term Borrowings Fair Value Measurements of Financial Instruments - Carrying Amounts and Estimated Fair Value of Financial Instruments (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Jun. 30, 2022 | |
Fair Value Measurements Of Financial Instruments [Line Items] | |||
Total long-term debt | $ 4,849 | $ 4,202 | |
Estimate of Fair Value Measurement [Member] | |||
Fair Value Measurements Of Financial Instruments [Line Items] | |||
Debt Instrument, Fair Value Disclosure | 4,493 | 3,839 | |
Total long-term debt | 4,493 | 3,839 | |
Carrying Value [Member] | |||
Fair Value Measurements Of Financial Instruments [Line Items] | |||
Debt Instrument, Fair Value Disclosure | 4,890 | 4,243 | |
Total long-term debt | 4,849 | 4,202 | |
Term loan facility B-3 U.S. dollar-denominated | |||
Fair Value Measurements Of Financial Instruments [Line Items] | |||
Total long-term debt | $ 1,422 | 1,433 | |
U.S Dollar-denominated 5.00% Senior Notes [Member] | |||
Fair Value Measurements Of Financial Instruments [Line Items] | |||
Debt Instrument, Interest Rate, Stated Percentage | 5% | ||
Total long-term debt | $ 500 | ||
U.S Dollar-denominated 5.00% Senior Notes [Member] | Fair Value, Inputs, Level 2 [Member] | Estimate of Fair Value Measurement [Member] | |||
Fair Value Measurements Of Financial Instruments [Line Items] | |||
Debt Instrument, Fair Value Disclosure | 493 | 483 | |
U.S Dollar-denominated 5.00% Senior Notes [Member] | Fair Value, Inputs, Level 2 [Member] | Carrying Value [Member] | |||
Fair Value Measurements Of Financial Instruments [Line Items] | |||
Debt Instrument, Fair Value Disclosure | 500 | 500 | |
2.375% Senior Euro Denominated Notes [Member] | Fair Value, Inputs, Level 2 [Member] | Estimate of Fair Value Measurement [Member] | |||
Fair Value Measurements Of Financial Instruments [Line Items] | |||
Debt Instrument, Fair Value Disclosure | 823 | 744 | |
2.375% Senior Euro Denominated Notes [Member] | Fair Value, Inputs, Level 2 [Member] | Carrying Value [Member] | |||
Fair Value Measurements Of Financial Instruments [Line Items] | |||
Debt Instrument, Fair Value Disclosure | [1] | 895 | 874 |
3.125% Senior US Denominated Notes | Fair Value, Inputs, Level 2 [Member] | Estimate of Fair Value Measurement [Member] | |||
Fair Value Measurements Of Financial Instruments [Line Items] | |||
Debt Instrument, Fair Value Disclosure | 500 | 476 | |
3.125% Senior US Denominated Notes | Fair Value, Inputs, Level 2 [Member] | Carrying Value [Member] | |||
Fair Value Measurements Of Financial Instruments [Line Items] | |||
Debt Instrument, Fair Value Disclosure | 550 | 550 | |
Senior Secured Credit Facilities & Other [Member] | Fair Value, Inputs, Level 2 [Member] | Estimate of Fair Value Measurement [Member] | |||
Fair Value Measurements Of Financial Instruments [Line Items] | |||
Debt Instrument, Fair Value Disclosure | 2,079 | 1,575 | |
Senior Secured Credit Facilities & Other [Member] | Fair Value, Inputs, Level 2 [Member] | Carrying Value [Member] | |||
Fair Value Measurements Of Financial Instruments [Line Items] | |||
Debt Instrument, Fair Value Disclosure | $ 2,295 | $ 1,669 | |
[1]The change in the carrying value of this euro-denominated debt was due to fluctuations in foreign currency exchange rates.(3) The increase in other obligations is associated with $24 million in proceeds from a failed sale-leaseback transaction that occurred in the three months ended March 31, 2023. |
Earnings Per Share Earnings Per
Earnings Per Share Earnings Per Share - Additional Details (Details) - USD ($) $ / shares in Units, $ in Millions | Nov. 18, 2021 | Nov. 23, 2020 | Mar. 31, 2023 | Jun. 30, 2022 |
Earnings Per Share [Abstract] | ||||
Conversion of Stock, Shares Converted | 384,777 | 265,223 | ||
Dividends, Preferred Stock, Stock | $ 2 | $ 2 | ||
Common Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Mar. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | Jun. 30, 2022 | |
Earnings Per Share [Abstract] | |||||||
Net earnings/(loss) | $ (227) | $ 80 | $ (5) | $ 141 | $ (146) | $ 331 | $ 499 |
Participating Securities, Distributed and Undistributed Earnings (Loss), Basic | 0 | 0 | 0 | 15 | |||
Net Income (Loss) Available to Common Stockholders, Basic | $ (227) | $ 141 | $ (146) | $ 316 | $ 483 | ||
Weighted Average Number of Shares Outstanding, Basic | 181 | 180 | 180 | 176 | |||
Dilutive securities issuable-stock plans | 0 | 1 | 0 | 1 | |||
Total weighted average diluted shares outstanding | 181 | 181 | 180 | 177 | |||
Earnings Per Share, Basic | $ (1.26) | $ 440,000 | $ (0.03) | $ 0.78 | $ (0.81) | $ 1.81 | $ 2.74 |
Earnings Per Share, Diluted | $ (1.26) | $ (0.03) | $ 0.78 | $ (0.81) | $ 1.79 | $ 2.73 |
Other Income and Expense (Detai
Other Income and Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | ||
Other Income and Expenses [Abstract] | |||||
Debt refinancing costs | [1] | — | — | — | 4 |
Foreign Currency (gains) and losses | [2] | $ (4) | $ 4 | $ (5) | $ 28 |
Other | [3] | 0 | (2) | 3 | (7) |
Other (income)/expense, net | [4] | (4) | $ 2 | (2) | 25 |
Gain (Loss) on Extinguishment of Debt | 4 | ||||
Term Loan Facility Incremental Dollar Term B-3 | $ 450 | ||||
Derivative, Gain (Loss) on Derivative, Net | $ 0 | $ 2 | |||
[1]Debt financing costs for the nine months ended March 31, 2022 includes $4 million of financing charges related to the $450 million aggregate principal amount of U.S. dollar-denominated term loans borrowed in that period under the Company’s senior secured credit facilities (together with all of the remaining U.S. dollar-denominated term loans outstanding, the “Term B-3 Loans”). |
Restructuring and Other Costs (
Restructuring and Other Costs (Details) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2023 USD ($) | Mar. 31, 2022 USD ($) | Mar. 31, 2023 USD ($) employees | Mar. 31, 2022 USD ($) | |
Restructuring and Related Activities [Abstract] | ||||
Severance Costs | $ 4 | $ 3 | $ 18 | $ 5 |
Business Exit Costs | 5 | 18 | ||
Restructuring and other | 9 | 3 | 36 | 5 |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and Related Cost, Expected Cost | 18 | $ 18 | ||
Restructuring and Related Cost [Abstract] | ||||
Restructuring and Related Cost, Number of Positions Eliminated | employees | 700 | |||
Restructuring and other | 9 | 3 | $ 36 | 5 |
Biologics | ||||
Restructuring and Related Activities [Abstract] | ||||
Restructuring and other | 7 | 1 | 25 | 1 |
Restructuring and Related Cost [Abstract] | ||||
Restructuring and other | 7 | 1 | 25 | 1 |
PharmaConsumerHealth | ||||
Restructuring and Related Activities [Abstract] | ||||
Restructuring and other | 1 | 1 | 5 | 3 |
Restructuring and Related Cost [Abstract] | ||||
Restructuring and other | 1 | 1 | 5 | 3 |
Corporate and Eliminations [Member] | ||||
Restructuring and Related Activities [Abstract] | ||||
Restructuring and other | 1 | 1 | 6 | 1 |
Restructuring and Related Cost [Abstract] | ||||
Restructuring and other | $ 1 | $ 1 | $ 6 | $ 1 |
Restructuring and Other Costs I
Restructuring and Other Costs Individual Site (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and Related Cost, Expected Cost | $ 18 | $ 18 | ||
Restructuring and other | $ 9 | $ 3 | $ 36 | $ 5 |
Derivative Instruments and He_3
Derivative Instruments and Hedging Activities - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | Jun. 30, 2022 | |
Derivative [Line Items] | |||||
Total long-term debt | $ 4,849 | $ 4,849 | $ 4,202 | ||
Unrealized foreign exchange gain/(loss) within other comprehensive income | (16) | $ 28 | (20) | $ 90 | |
Unrealized foreign exchange gain/(loss) within statement of operations | 0 | $ 0 | 0 | (11) | |
Net accumulated gain related to investment hedges | 107 | ||||
Derivative, Gain (Loss) on Derivative, Net | 0 | $ 2 | |||
Cash Paid to Settle, Interest Rate Swap Agreement | 2 | 2 | |||
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), after Reclassification, before Tax | 15 | ||||
Interest Rate Cash Flow Hedge Liability at Fair Value | 36 | ||||
Carrying Value [Member] | |||||
Derivative [Line Items] | |||||
Total long-term debt | 4,849 | 4,849 | 4,202 | ||
Debt Instrument, Fair Value Disclosure | 4,890 | 4,890 | 4,243 | ||
Euro Denominated Debt Outstanding [Member] | |||||
Derivative [Line Items] | |||||
Total long-term debt | 895 | 895 | |||
U.S. Denominated Term Loan [Member] | |||||
Derivative [Line Items] | |||||
Total Debt, U.S Denominated Term Loan | $ 500 | $ 500 | |||
Debt Instrument, Interest Rate, Effective Percentage | 0.9985% | 0.9985% | |||
3.500% Senior US Denominated Notes | Fair Value, Inputs, Level 2 [Member] | Carrying Value [Member] | |||||
Derivative [Line Items] | |||||
Debt Instrument, Fair Value Disclosure | $ 650 | $ 650 | $ 650 |
Fair value measurement recurrin
Fair value measurement recurring basis (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | Jun. 30, 2022 | ||
Fair Value Disclosures [Abstract] | ||||||
Marketable Securities | $ 0 | $ 0 | $ 89 | |||
Trading Securities at Fair Value | 1 | 1 | 2 | |||
Interest Rate Cash Flow Hedge Asset at Fair Value | 51 | 51 | 36 | |||
Interest Rate Cash Flow Hedge Liability at Fair Value | 36 | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||||
Marketable Securities | 0 | 0 | 89 | |||
Trading Securities at Fair Value | 1 | 1 | 2 | |||
Interest Rate Cash Flow Hedge Asset at Fair Value | 51 | 51 | 36 | |||
Interest Rate Cash Flow Hedge Liability at Fair Value | 36 | |||||
Payments for (Proceeds from) Businesses and Interest in Affiliates | [1] | 0 | $ 0 | 0 | $ 1 | |
Derivative, Gain (Loss) on Derivative, Net | 0 | $ 2 | ||||
Fair Value, Inputs, Level 1 [Member] | ||||||
Fair Value Disclosures [Abstract] | ||||||
Marketable Securities | 89 | |||||
Trading Securities at Fair Value | 1 | 1 | 2 | |||
Interest Rate Cash Flow Hedge Asset at Fair Value | 0 | 0 | 0 | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||||
Marketable Securities | 89 | |||||
Trading Securities at Fair Value | 1 | 1 | 2 | |||
Interest Rate Cash Flow Hedge Asset at Fair Value | 0 | 0 | 0 | |||
Fair Value, Inputs, Level 2 [Member] | ||||||
Fair Value Disclosures [Abstract] | ||||||
Marketable Securities | 0 | |||||
Trading Securities at Fair Value | 0 | 0 | 0 | |||
Interest Rate Cash Flow Hedge Asset at Fair Value | 51 | 51 | 36 | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||||
Marketable Securities | 0 | |||||
Trading Securities at Fair Value | 0 | 0 | 0 | |||
Interest Rate Cash Flow Hedge Asset at Fair Value | 51 | 51 | 36 | |||
Fair Value, Inputs, Level 3 [Member] | ||||||
Fair Value Disclosures [Abstract] | ||||||
Marketable Securities | 0 | |||||
Trading Securities at Fair Value | 0 | 0 | 0 | |||
Interest Rate Cash Flow Hedge Asset at Fair Value | 0 | 0 | 0 | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||||
Marketable Securities | 0 | |||||
Trading Securities at Fair Value | 0 | 0 | 0 | |||
Interest Rate Cash Flow Hedge Asset at Fair Value | $ 0 | $ 0 | $ 0 | |||
[1]Gain on sale of subsidiary for the nine months ended March 31, 2022 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Mar. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | Jun. 30, 2022 | |
Income Tax Disclosure [Abstract] | |||||||
Unrecognized Tax Benefits, Including Income Tax Penalties and Interest Accrued | $ 2 | $ 2 | $ 5 | ||||
Income tax expense(benefit) | (55) | $ 34 | $ 1 | $ 35 | (19) | $ 63 | 80 |
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | $ (282) | $ (4) | $ 176 | $ (165) | $ 394 | $ 579 |
Employee Retirement Benefit P_3
Employee Retirement Benefit Plans - Components of Company's Net Periodic Benefit Costs (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | ||
Components of net periodic benefit cost: | |||||
Service cost | $ 1 | $ 1 | $ 3 | $ 3 | |
Interest cost | 3 | 1 | 7 | 3 | |
Expected return on plan assets | (2) | (2) | (6) | (7) | |
Amortization | [1] | 0 | 1 | 0 | 3 |
Net amount recognized | 2 | 1 | 4 | 2 | |
Estimated discounted value of future employer contributions | 38 | 38 | |||
Estimated annual cash contribution | $ 2 | $ 2 | $ 2 | $ 2 | |
[1]Amount represents the amortization of unrecognized actuarial losses. |
Equity and Accumulated Other _3
Equity and Accumulated Other Comprehensive Income (Loss) - Equity (Details) - USD ($) $ / shares in Units, $ in Millions | 9 Months Ended | |||||
Nov. 18, 2021 | Nov. 23, 2020 | Mar. 31, 2022 | Mar. 31, 2023 | Jun. 30, 2022 | May 17, 2019 | |
Equity [Abstract] | ||||||
Common Stock, Shares Authorized | 1,000,000,000 | 1,000,000,000 | ||||
Preferred Stock, Shares Authorized | 100,000,000 | 100,000,000 | ||||
Conversion of Stock, Shares Converted | 384,777 | 265,223 | ||||
Dividends, Preferred Stock, Stock | $ 2 | $ 2 | ||||
Preferred Stock, Shares Outstanding | 0 | 0 | ||||
Stock Issued During Period, Value, Conversion of Convertible Securities | $ (362) | |||||
Auction Market Preferred Securities, Stock Series [Line Items] | ||||||
Preferred Stock, Shares Authorized | 100,000,000 | 100,000,000 | ||||
Preferred Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 | ||||
Preferred Stock, Shares Issued | 0 | 0 | ||||
Dividends, Preferred Stock, Stock | $ 2 | $ 2 | ||||
Series A [Member] | ||||||
Auction Market Preferred Securities, Stock Series [Line Items] | ||||||
Preferred Stock, Shares Issued | 650,000 |
Equity and Accumulated Other _4
Equity and Accumulated Other Comprehensive Income (Loss) - Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | |
Foreign currency translation adjustments: | ||||
Net investment hedge | $ (16) | $ 28 | $ (20) | $ 90 |
Long-term intercompany loans | 9 | (8) | (1) | (15) |
Translation adjustments | 31 | (36) | 26 | (109) |
Total foreign currency translation adjustment, pretax | 24 | (16) | 5 | (34) |
Tax expense/(benefit) | (3) | 6 | (5) | 20 |
Total foreign currency translation adjustment, net of tax | 27 | (22) | 10 | (54) |
Net change in derivatives and hedges | ||||
Net loss recognized during the period | (3) | 23 | 15 | 28 |
Total derivatives and hedges, pretax | (3) | 23 | 15 | 28 |
Tax expense/(benefit) | (1) | 6 | 3 | 7 |
Net change in derivatives and hedges, net of tax | (2) | 17 | 12 | 21 |
Net change in minimum pension liability | ||||
Net gain/(loss) recognized during the period | 0 | 1 | 0 | 2 |
Total pension liability, pretax | 0 | 1 | 0 | 2 |
Tax expense/(benefit) | 0 | 0 | 0 | 0 |
Pension and other post-retirement adjustments | 0 | 1 | 0 | 2 |
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, Net of Tax, Portion Attributable to Parent [Abstract] | ||||
Available-for-sale Securities, Gross Realized Losses | 0 | (2) | 1 | (3) |
Total available for sale investment, pretax | 2 | (2) | 5 | (3) |
Tax expense/(benefit) | 1 | 0 | (1) | |
Available for sale investments | 2 | (1) | 4 | (2) |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Other comprehensive income/(loss) before reclassifications | $ 25 | $ (6) | $ 22 | $ (35) |
Equity and Accumulated Other _5
Equity and Accumulated Other Comprehensive Income (Loss) - Rollforward (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2023 | Mar. 31, 2022 | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||||
Beginning Balance | $ (395) | $ (345) | $ (394) | $ (317) | |
Other comprehensive income/(loss) before reclassifications | 25 | (6) | 22 | (35) | |
Amounts reclassified from accumulated other comprehensive income/(loss) | 2 | (1) | 4 | 2 | |
Total foreign currency translation adjustment, net of tax | 27 | (22) | 10 | (54) | |
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, after Tax | 0 | 1 | 0 | 2 | |
Net change in derivatives and hedges, net of tax | (2) | 17 | 12 | 21 | |
Other Comprehensive Income, Other, Net of Tax | 27 | (5) | 26 | (33) | |
Available for sale investments | 2 | (1) | 4 | (2) | |
Other comprehensive income/(loss), net of tax | 27 | (5) | 26 | (33) | |
Ending Balance | (368) | (350) | (368) | (350) | |
Accumulated Translation Adjustment [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||||
Beginning Balance | (395) | (300) | (378) | (268) | |
Other comprehensive income/(loss) before reclassifications | 27 | (22) | 10 | (54) | |
Amounts reclassified from accumulated other comprehensive income/(loss) | 0 | ||||
Total foreign currency translation adjustment, net of tax | (22) | 10 | (54) | ||
Ending Balance | (368) | (322) | (368) | (322) | |
Accumulated Defined Benefit Plans Adjustment [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||||
Beginning Balance | (38) | (46) | (38) | (47) | |
Other comprehensive income/(loss) before reclassifications | 0 | ||||
Amounts reclassified from accumulated other comprehensive income/(loss) | 0 | 1 | 2 | ||
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, after Tax | 0 | 1 | 0 | 2 | |
Ending Balance | (38) | (45) | (38) | (45) | |
AOCI, Derivative Qualifying as Hedge, Parent [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||||
Beginning Balance | 41 | 4 | 27 | ||
Other comprehensive income/(loss) before reclassifications | (2) | 17 | 12 | 21 | |
Amounts reclassified from accumulated other comprehensive income/(loss) | 0 | ||||
Ending Balance | 39 | 21 | 39 | 21 | |
ACOI, Accumulated Gain (Loss), Marketable Securities [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||||
Beginning Balance | (2) | (2) | (4) | (1) | |
Other comprehensive income/(loss) before reclassifications | 0 | (1) | $ 0 | (2) | |
Amounts reclassified from accumulated other comprehensive income/(loss) | 2 | 4 | |||
Net change in derivatives and hedges, net of tax | (2) | 17 | 12 | 21 | |
Available for sale investments | (1) | 4 | (2) | ||
Ending Balance | 0 | (3) | 0 | (3) | |
Available-for-sale Securities [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||||
Beginning Balance | (1) | (1) | (1) | (1) | |
Other comprehensive income/(loss) before reclassifications | 0 | ||||
Amounts reclassified from accumulated other comprehensive income/(loss) | 0 | ||||
Other Comprehensive Income, Other, Net of Tax | 0 | ||||
Ending Balance | $ (1) | $ (1) | $ (1) | $ (1) |
Segment Information - Net Reven
Segment Information - Net Revenue and Segment Ebitda (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||
Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2023 | Mar. 31, 2022 | Jun. 30, 2022 | ||
Segment Reporting, Revenue & EBITDA Reconciling Item [Line Items] | ||||||||||||
Net revenue | $ 1,037 | $ 1,015 | $ 1,273 | $ 3,208 | $ 3,515 | $ 4,802 | ||||||
Inter-segment revenue elimination | (1) | $ (1) | $ 0 | (1) | $ (1) | $ (1) | $ (1) | $ (2) | (2) | (3) | ||
Segment Reporting Information Unallocated Expense | [1] | (256) | (54) | (394) | (211) | |||||||
Biologics | ||||||||||||
Segment Reporting, Revenue & EBITDA Reconciling Item [Line Items] | ||||||||||||
Net revenue | 475 | 700 | 1,578 | 1,889 | ||||||||
Segment EBITDA | 6 | 218 | 299 | 584 | ||||||||
PharmaConsumerHealth | ||||||||||||
Segment Reporting, Revenue & EBITDA Reconciling Item [Line Items] | ||||||||||||
Net revenue | 563 | 574 | 1,632 | 1,629 | ||||||||
Segment EBITDA | 125 | 144 | 368 | 390 | ||||||||
Total Catalent sub-total of Segment Reporting [Member] | ||||||||||||
Segment Reporting, Revenue & EBITDA Reconciling Item [Line Items] | ||||||||||||
Segment EBITDA | $ 131 | $ 362 | $ 667 | $ 974 | ||||||||
[1]Unallocated costs include restructuring and special items, stock-based compensation, gain on sale of subsidiary, impairment charges, certain other corporate directed costs, and other costs that are not allocated to the segments as follows: |
Segment Information, EBITDA, Re
Segment Information, EBITDA, Reconciling Items (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | ||
Unallocated costs [Abstract] | |||||
Impairment Charges And Gain Loss On Sale Of Assets | $ 6 | $ 2 | $ 4 | $ 21 | |
Stock-based compensation | 6 | 10 | 35 | 42 | |
Restructuring And Other Special Items | [1] | 17 | 12 | 59 | 43 |
Payments for (Proceeds from) Businesses and Interest in Affiliates | [2] | 0 | 0 | 0 | 1 |
Other (income)/expense, net | [3] | 4 | (2) | 2 | (25) |
Non Allocated Corporate Costs Net | 21 | 28 | 88 | 81 | |
Segment Reporting Information Unallocated Expense | [4] | 256 | 54 | 394 | 211 |
Goodwill, Impairment Loss | $ (210) | $ 0 | $ (210) | $ 0 | |
[1]Restructuring and other special items during the three months ended March 31, 2023 include (i) restructuring charges associated with plans to reduce costs, consolidate facilities, and optimize our infrastructure across the organization and (ii) transaction and integration costs associated with the Metrics acquisition. Restructuring and other special items for the nine months ended March 31, 2023 also includes warehouse exit costs for a product the Company no longer manufactures in its Pharma and Consumer Health segment. For further details on restructuring charges, see Note 9, Restructuring Costs . Restructuring and other special items during the three months ended March 31, 2022 include (i) integration costs primarily associated with the Bettera Wellness acquisition and (ii) unrealized losses on venture capital investments. Restructuring and other special items during the nine months ended March 31, 2022 also include transaction and integration costs associated with the Delphi Genetics S.A., Hepatic Cell Therapy Support S.A., RheinCell Therapeutics GmbH acquisitions and the Acorda Therapeutics, Inc. transaction. (c) Goodwill impairment charges during the three and nine months ended March 31, 2023 was associated with the Company’s Consumer Health reporting unit. For further details, see Note 5, Goodwill . |
Segment Information - Reconcili
Segment Information - Reconciliation of Earnings / (Loss) from Continuing Operations to Ebitda (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||
Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Mar. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | Jun. 30, 2022 | ||
Segment Reporting [Abstract] | ||||||||
Segment Reporting Information Unallocated Expense | [1] | $ 256 | $ 54 | $ 394 | $ 211 | |||
Depreciation and amortization | 106 | 99 | 308 | 278 | ||||
Interest expense, net | 51 | 33 | 130 | 91 | ||||
Income tax expense(benefit) | (55) | $ 34 | $ 1 | 35 | (19) | 63 | $ 80 | |
Earnings/(loss) from continuing operations | $ (227) | $ 141 | $ (146) | $ 331 | ||||
[1]Unallocated costs include restructuring and special items, stock-based compensation, gain on sale of subsidiary, impairment charges, certain other corporate directed costs, and other costs that are not allocated to the segments as follows: |
Segment Information - Total Ass
Segment Information - Total Assets for Each Segment and Reconciling in Consolidated Financial Statements (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||||||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | Jun. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | ||
Segment Reporting, Asset Reconciling Item [Line Items] | |||||||||
Total assets | $ 10,830 | $ 10,830 | $ 10,508 | $ 11,148 | $ 10,206 | $ 10,508 | |||
Payments for (Proceeds from) Businesses and Interest in Affiliates | [1] | 0 | $ 0 | 0 | $ 1 | ||||
Biologics | |||||||||
Segment Reporting, Asset Reconciling Item [Line Items] | |||||||||
Total assets | 5,904 | 5,904 | 5,770 | ||||||
PharmaConsumerHealth | |||||||||
Segment Reporting, Asset Reconciling Item [Line Items] | |||||||||
Total assets | 4,847 | 4,847 | 4,356 | ||||||
Corporate and Eliminations [Member] | |||||||||
Segment Reporting, Asset Reconciling Item [Line Items] | |||||||||
Total assets | $ 79 | $ 79 | $ 382 | ||||||
[1]Gain on sale of subsidiary for the nine months ended March 31, 2022 |
Segment Information - Major Cus
Segment Information - Major Customers (Details) | 9 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Segment Reporting [Abstract] | ||
Segment Reporting, Disclosure of Major Customers | 11 | 9 |
Supplemental Balance Sheet In_3
Supplemental Balance Sheet Information - Inventory (Detail) - USD ($) $ in Millions | Mar. 31, 2023 | Jun. 30, 2022 |
Inventory, Net [Abstract] | ||
Raw materials and supplies | $ 762 | $ 651 |
Work-in-process | 144 | 109 |
Total inventories, gross | 906 | 760 |
Inventory cost adjustment | (162) | (58) |
Inventories | $ 744 | $ 702 |
Supplemental Balance Sheet In_4
Supplemental Balance Sheet Information - Prepaid and Other Assets (Detail) - USD ($) $ in Millions | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 |
Prepaid Expense and Other Assets, Current [Abstract] | |||||
Prepaid expenses | $ 70 | $ 61 | |||
Contract with Customer, Asset, Net, Current | 488 | 398 | |||
Spare parts supplies | 24 | 22 | |||
Prepaid income tax | 35 | 27 | |||
Non-U.S. value added tax | 35 | 48 | |||
Other current assets | 41 | 70 | |||
Prepaid expenses and other | $ 626 | $ 693 | $ 715 | $ 633 | $ 626 |
Supplemental Balance Sheet In_5
Supplemental Balance Sheet Information - Other Accrued Liabilities (Detail) - USD ($) $ in Millions | Mar. 31, 2023 | Jun. 30, 2022 |
Balance Sheet Related Disclosures [Abstract] | ||
Accrued employee-related expenses | $ 132 | $ 198 |
Accrued Operating Lease, Liabilities | 11 | 14 |
Restructuring accrual | 1 | 1 |
Accrued interest | 24 | 32 |
Contract liability | 203 | 211 |
Accrued income tax | 23 | 50 |
Other accrued liabilities and expenses | 111 | 140 |
Other accrued liabilities | $ 505 | $ 646 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||||||||
Oct. 01, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2023 | Mar. 31, 2022 | Jun. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Dec. 31, 2021 | Jun. 30, 2021 | |
Subsequent Event | ||||||||||||
Unrecognized Tax Benefits, Including Income Tax Penalties and Interest Accrued | $ 2 | $ 2 | $ 5 | |||||||||
Assets | 10,830 | 10,830 | $ 10,508 | $ 11,148 | $ 10,206 | 10,508 | ||||||
Line of Credit, Current | 715 | 715 | ||||||||||
Other comprehensive income/(loss) before reclassifications | 25 | $ (6) | 22 | $ (35) | ||||||||
Foreign currency translation adjustments | 27 | (22) | 10 | (54) | ||||||||
Net change in derivatives and hedges, net of tax | (2) | 17 | 12 | 21 | ||||||||
Available for sale investments | 2 | (1) | 4 | (2) | ||||||||
Other Comprehensive Income, Other, Net of Tax | 27 | (5) | 26 | (33) | ||||||||
Accumulated other comprehensive income/(loss) | (368) | (350) | (368) | (350) | (395) | (394) | $ (345) | $ (317) | ||||
Amounts reclassified from accumulated other comprehensive income/(loss) | 2 | (1) | 4 | 2 | ||||||||
Pension and other post-retirement adjustments | 0 | 1 | 0 | 2 | ||||||||
Tax expense/(benefit) | 1 | 0 | (1) | |||||||||
Accumulated Translation Adjustment [Member] | ||||||||||||
Subsequent Event | ||||||||||||
Other comprehensive income/(loss) before reclassifications | 27 | (22) | 10 | (54) | ||||||||
Foreign currency translation adjustments | (22) | 10 | (54) | |||||||||
Accumulated other comprehensive income/(loss) | (368) | (322) | (368) | (322) | (395) | (378) | (300) | (268) | ||||
Amounts reclassified from accumulated other comprehensive income/(loss) | 0 | |||||||||||
AOCI, Derivative Qualifying as Hedge, Parent [Member] | ||||||||||||
Subsequent Event | ||||||||||||
Other comprehensive income/(loss) before reclassifications | (2) | 17 | 12 | 21 | ||||||||
Accumulated other comprehensive income/(loss) | 39 | 21 | 39 | 21 | 41 | 27 | 4 | |||||
Amounts reclassified from accumulated other comprehensive income/(loss) | 0 | |||||||||||
ACOI, Accumulated Gain (Loss), Marketable Securities [Member] | ||||||||||||
Subsequent Event | ||||||||||||
Other comprehensive income/(loss) before reclassifications | 0 | (1) | $ 0 | (2) | ||||||||
Net change in derivatives and hedges, net of tax | (2) | 17 | 12 | 21 | ||||||||
Available for sale investments | (1) | 4 | (2) | |||||||||
Accumulated other comprehensive income/(loss) | 0 | (3) | 0 | (3) | (2) | (4) | (2) | (1) | ||||
Amounts reclassified from accumulated other comprehensive income/(loss) | 2 | 4 | ||||||||||
Accumulated Defined Benefit Plans Adjustment [Member] | ||||||||||||
Subsequent Event | ||||||||||||
Other comprehensive income/(loss) before reclassifications | 0 | |||||||||||
Accumulated other comprehensive income/(loss) | (38) | (45) | (38) | (45) | (38) | (38) | (46) | (47) | ||||
Amounts reclassified from accumulated other comprehensive income/(loss) | 0 | 1 | 2 | |||||||||
Pension and other post-retirement adjustments | 0 | 1 | 0 | 2 | ||||||||
Available-for-sale Securities [Member] | ||||||||||||
Subsequent Event | ||||||||||||
Other comprehensive income/(loss) before reclassifications | 0 | |||||||||||
Other Comprehensive Income, Other, Net of Tax | 0 | |||||||||||
Accumulated other comprehensive income/(loss) | (1) | (1) | (1) | (1) | $ (1) | (1) | $ (1) | $ (1) | ||||
Amounts reclassified from accumulated other comprehensive income/(loss) | 0 | |||||||||||
PharmaConsumerHealth | ||||||||||||
Subsequent Event | ||||||||||||
Segment EBITDA | 125 | $ 144 | 368 | $ 390 | ||||||||
Assets | $ 4,847 | $ 4,847 | $ 4,356 | |||||||||
Metrics | ||||||||||||
Subsequent Event | ||||||||||||
Business Combination, Consideration Transferred | $ 474 |