Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Mar. 31, 2024 | Apr. 25, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2024 | |
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, $0.01 par value per share | |
Trading Symbol | CTLT | |
Security Exchange Name | NYSE | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q3 | |
Entity Central Index Key | 0001596783 | |
Current Fiscal Year End Date | --06-30 | |
Entity Common Stock, Shares Outstanding (shares) | 180,979,849 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | ||
Income Statement [Abstract] | |||||
Net revenue | $ 1,074 | $ 1,037 | $ 3,080 | $ 3,208 | |
Cost of sales | 845 | 857 | 2,511 | 2,383 | |
Gross margin | 229 | 180 | 569 | 825 | |
Selling, general, and administrative expenses | 214 | 190 | 669 | 612 | |
Goodwill, Impairment Loss | 0 | (210) | (687) | (210) | |
Other Cost and Expense, Operating | 32 | 15 | 68 | 40 | |
Operating earnings | (17) | (235) | (855) | (37) | |
Interest expense, net | 65 | 51 | 189 | 130 | |
Other (income)/expense, net | [1] | 4 | (4) | 21 | (2) |
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest, Total | (86) | (282) | (1,065) | (165) | |
Income tax expense | 15 | (55) | 1 | (19) | |
Net earnings/(loss) | $ (101) | $ (227) | $ (1,066) | $ (146) | |
Earnings Per Share, Basic | $ (0.56) | $ (1.26) | $ (5.87) | $ (0.81) | |
Earnings Per Share, Diluted | $ (0.56) | $ (1.26) | $ (5.87) | $ (0.81) | |
[1]Other expense, net during the three and nine months ended March 31, 2024 and 2023 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, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | Jun. 30, 2024 | |
Other comprehensive income/(loss), net of tax | |||||
Net earnings/(loss) | $ (101) | $ (227) | $ (1,066) | $ (146) | $ (1,066) |
Foreign currency translation adjustments | (14) | 27 | (16) | 10 | |
Pension and other post-retirement adjustments | 7 | 0 | 11 | 0 | |
Available for sale investments | 0 | 2 | 0 | 4 | |
Net change in derivatives and hedges, net of tax | 5 | (2) | 3 | 12 | |
Other comprehensive income/(loss), net of tax | (2) | 27 | (2) | 26 | $ (2) |
Comprehensive income/(loss) | $ (103) | $ (200) | $ (1,068) | $ (120) |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Mar. 31, 2024 | Jun. 30, 2023 |
Current assets: | ||
Cash and cash equivalents | $ 162 | $ 280 |
Trade receivables, net | 875 | 1,002 |
Inventories | 742 | 777 |
Prepaid expenses and other | 744 | 633 |
Total current assets | 2,523 | 2,692 |
Property, plant, and equipment, net | 3,735 | 3,682 |
Other assets: | ||
Goodwill | 2,339 | 3,039 |
Other intangibles, net | 875 | 980 |
Deferred Income Tax Assets, Net | 66 | 55 |
Other Assets, Noncurrent | 341 | 329 |
Total assets | 9,879 | 10,777 |
Current Liabilities: | ||
Debt, Current | 47 | 536 |
Accounts payable | 377 | 424 |
Other accrued liabilities | 583 | 570 |
Total current liabilities | 1,007 | 1,530 |
Long-term obligations, less current portion | 4,933 | 4,313 |
Pension liability | 97 | 100 |
Deferred Income Taxes | 64 | 76 |
Other liabilities | 167 | 147 |
Total liabilities | $ 6,268 | $ 6,166 |
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 | 4,769 | 4,701 |
Accumulated deficit | (804) | 262 |
Accumulated other comprehensive income/(loss) | (356) | (354) |
Total shareholders' equity | 3,611 | 4,611 |
Total liabilities, redeemable preferred stock, and shareholders’ equity | $ 9,879 | $ 10,777 |
Common stock, shares issued (shares) | 181,000,000 | 180,000,000 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2024 | Jun. 30, 2023 |
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) | 181,000,000 | 180,000,000 |
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 | $ 32 | $ 46 |
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | $ 1,842 | $ 1,596 |
Consolidated Statement of Chang
Consolidated Statement of Changes in Shareholder's Equity - USD ($) $ in Millions | Total | Common Stock | Additional Paid-in Capital | Accumulated Deficit | Accumulated Other Comprehensive Income/(Loss) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Common Stock, Shares, Outstanding | 179,302,000,000 | ||||
Beginning Balance at Jun. 30, 2022 | $ 4,775 | $ 2 | $ 4,649 | $ 518 | $ (394) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock-based compensation | 35 | 35 | |||
APIC, Share-based Payment Arrangement, Option, Increase for Cost Recognition | 9 | 9 | |||
Non-qualified stock | 4 | (4) | |||
Net earnings/(loss) | (146) | (146) | |||
Other comprehensive income/(loss), net of tax | 26 | 26 | |||
Ending Balance at Mar. 31, 2023 | 4,703 | $ 2 | 4,697 | 372 | (368) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Shares Issued, Shares, Share-based Payment Arrangement, after Forfeiture | 855,000,000 | ||||
Common Stock, Shares, Outstanding | 179,988,000,000 | ||||
Beginning Balance at Dec. 31, 2022 | 4,892 | $ 2 | 4,686 | 599 | (395) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock Issued During Period, Value, Stock Options Exercised | 0 | 0 | 0 | ||
Stock-based compensation | 6 | 6 | |||
APIC, Share-based Payment Arrangement, ESPP, Increase for Cost Recognition | 2 | 2 | |||
Non-qualified stock | (3) | ||||
Net earnings/(loss) | (227) | (227) | |||
Other comprehensive income/(loss), net of tax | 27 | 27 | |||
Ending Balance at Mar. 31, 2023 | $ 4,703 | $ 2 | 4,697 | 372 | (368) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Share issuances related to stock-based compensation | 169,000,000 | ||||
Common Stock, Shares, Outstanding | 180,157,000,000 | ||||
Common Stock, Shares, Outstanding | 179,000,000 | 180,273,000,000 | |||
Beginning Balance at Jun. 30, 2023 | $ 4,611 | $ 2 | 4,701 | 262 | (354) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net earnings/(loss) | (1,066) | ||||
Other comprehensive income/(loss), net of tax | (2) | ||||
Ending Balance at Mar. 31, 2024 | 3,611 | $ 2 | 4,769 | (804) | (356) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Common Stock, Shares, Outstanding | 180,668,000,000 | ||||
Beginning Balance at Dec. 31, 2023 | 3,687 | $ 2 | 4,742 | (703) | (354) |
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 | 17 | 17 | |||
APIC, Share-based Payment Arrangement, ESPP, Increase for Cost Recognition | 2 | 2 | |||
APIC, Share-based Payment Arrangement, Option, Increase for Cost Recognition | 8 | 8 | |||
Non-qualified stock | 3 | ||||
Net earnings/(loss) | (101) | (101) | |||
Other comprehensive income/(loss), net of tax | (2) | (2) | |||
Ending Balance at Mar. 31, 2024 | $ 3,611 | $ 2 | $ 4,769 | $ (804) | $ (356) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Shares Issued, Shares, Share-based Payment Arrangement, after Forfeiture | 246,000,000 | ||||
Common Stock, Shares, Outstanding | 180,000,000 | 180,914,000,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 9 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net earnings/(loss) | $ (1,066) | $ (146) |
Adjustments to reconcile earnings/(loss) from operations to net cash from operations: | ||
Depreciation and amortization | 359 | 308 |
Goodwill, Impairment Loss | 687 | 210 |
Non-cash foreign currency transaction (gain)/loss, net | 10 | (6) |
Total restructuring costs | 7 | 18 |
Amortization and write-off of debt financing costs | 10 | 6 |
Asset impairments charges and (gain)/loss on sale of assets | 27 | 4 |
Share issuances related to stock-based compensation | 52 | 35 |
Provision/(benefit) for deferred income taxes | (24) | (69) |
Provision for bad debts and inventory | 87 | 99 |
Change in operating assets and liabilities: | ||
Decrease/(increase) in trade receivables | 130 | 18 |
Decrease/(increase) in inventories | (61) | (135) |
Increase/(decrease) in accounts payable | (58) | (39) |
Other assets/accrued liabilities, net — current and non-current | (118) | (245) |
Net Cash Provided by (Used in) Operating Activities, Total | 54 | 58 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Acquisition of property and equipment and other productive assets | (252) | (455) |
Proceeds from Sale and Maturity of Marketable Securities | 0 | 89 |
Proceeds from Sale of Property, Plant, and Equipment | 1 | 8 |
Payment for acquisitions, net of cash acquired | 0 | (474) |
Payments to Acquire Investments | (2) | |
Proceeds from Sale and Maturity of Other Investments | (2) | |
Net cash (used in) investing activities | (253) | (834) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Net change in other borrowings | 1,060 | 715 |
Payments related to long-term obligations | (971) | (176) |
Payments of Debt Issuance Costs | (16) | (4) |
Proceeds from (Repurchase of) Equity [Abstract] | ||
Proceeds from Stock Options Exercised | 9 | 4 |
Proceeds from (Payments for) Other Financing Activities | 2 | 33 |
Net cash (used in)/provided by financing activities | 84 | 572 |
Effect of Exchange Rate on Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | (3) | 7 |
NET INCREASE/(DECREASE) IN CASH AND EQUIVALENTS | (118) | (197) |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 162 | 252 |
CASH AND EQUIVALENTS AT BEGINNING OF PERIOD | 280 | |
CASH AND EQUIVALENTS AT END OF PERIOD | 162 | |
SUPPLEMENTARY CASH FLOW INFORMATION: | ||
Interest paid | 182 | 145 |
Income taxes paid, net | 64 | 83 |
Capital Expenditures Incurred but Not yet Paid | $ 13 | $ 8 |
Accounting Changes and Error Co
Accounting Changes and Error Corrections - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Jun. 30, 2024 | |
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 |
Business Combinations
Business Combinations | 3 Months Ended |
Mar. 31, 2024 | |
Business Combinations [Abstract] | |
Business Combination Disclosure [Text Block] | BUSINESS COMBINATIONS |
Goodwill
Goodwill | 9 Months Ended |
Mar. 31, 2024 | |
Goodwill Disclosure [Abstract] | |
Goodwill | GOODWILL The following table summarizes the changes between June 30, 2023 and March 31, 2024 in the carrying amount of goodwill in total and by segment: (Dollars in millions) Biologics Pharma and Consumer Health Total Balance at June 30, 2023 $ 1,563 $ 1,476 $ 3,039 Foreign currency translation adjustments (4) (9) (13) Impairment (1) (392) (295) (687) Balance at March 31, 2024 $ 1,167 $ 1,172 $ 2,339 (1) Represents gross impairment charges in the period. Accumulated goodwill impairment charges amount to $897 million as of March 31, 2024. Goodwill Impairment Charges As a result of the Consumer Health reporting unit's underperformance of recent operating results relative to expectations, the current macroeconomic conditions impacting the consumer health and biotechnology industries, and increased interest rates, the Company assessed the current and future economic outlook as of September 30, 2023 for its reporting units in its Pharma and Consumer Health and Biologics segments and identified indicators for impairment of the goodwill previously recorded for two of its reporting units. The evaluation began with a qualitative assessment of the Company's Consumer Health and Biomodalities reporting units to determine if it was more likely than not that the fair value of the reporting units 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 and Biomodalities reporting units, which led to a quantitative assessment for the corresponding 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 terminal revenue growth rate of 3.5% and discount rates ranging from 9% to 10% in its estimation of fair value. The evaluation performed resulted in impairment charges of $687 million with respect to the Consumer Health and Biomodalities reporting units. While the Company believes the assumptions it used were reasonable and commensurate with the views of a market participant, changes in key assumptions, including increasing the discount rate, lowering forecasts for revenue and operating margin or lowering the long-term growth rate could lead to the conclusion that an additional impairment was appropriate. |
Long-Term Obligations and Other
Long-Term Obligations and Other Short-Term Borrowings | 3 Months Ended |
Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
Long-Term Obligations and Other Short-Term Borrowings | On November 22, 2023, Operating Company, entered into Amendment No. 10 (the “Tenth Amendment”) to its Amended and Restated Credit Agreement dated May 20, 2014 (as amended, the “Credit Agreement”), which Tenth Amendment further extends the deadlines by which the Operating Company is required to deliver to the administrative agent (i) its audited financial statements as at the end of and for the fiscal year ended June 30, 2023, together with the auditor’s report and opinion on such audited financial statements, to January 26, 2024, and (ii) its unaudited financial statements as at the end of and for the fiscal quarter ending September 30, 2023 to March 13, 2024. On December 19, 2023, Operating Company entered into Amendment No. 11 (the “Eleventh Amendment”) to the Credit Agreement. Pursuant to the Eleventh Amendment, the Operating Company incurred $600 million aggregate principal amount of U.S. dollar-denominated term B-4 loans (the “Term B-4 Loans”).The Term B-4 Loans are a new class of term loans under the Credit Agreement, with an interest rate, at Operating Company’s option, of either (i) the term SOFR rate plus 3.00% or (ii) the base rate plus 2.00%; provided, that the term SOFR rate shall not be less than 0.50%. The Term B-4 Loans have a maturity date of February 2028, quarterly amortization of principal equal to 1.00% with payments on the last business day of March, June, September, and December. The proceeds of the Term B-4 Loans, after payment of fees and expenses, were used to repay the existing Revolving Credit Facility under the Credit Agreement, plus accrued and unpaid interest thereon. The Credit Agreement requires compliance with a net leverage covenant when there is a 30% or more draw outstanding at a period end. As of March 31, 2024, we were in compliance with all covenants under the Credit Agreement. In addition to outstanding borrowings under the Revolving Credit facility, the available capacity under the Revolving Credit Facility is further reduced by the aggregate value of all outstanding letters of credit under the Credit Agreement. As of March 31, 2024, Operating Company had $1.10 billion of available capacity under the Revolving Credit Facility, due to $4 million of outstanding letters of credit. Measurement of the Estimated Fair Value of Debt The estimated fair value of the Company’s senior secured credit facilities and other senior indebtedness is classified as a Level 2 determination (see Note 10, Fair Value Measurements to our consolidated financial statements, for a description of the method by which fair value classifications are determined) in the fair-value hierarchy and is calculated by using a discounted cash flow model with a market interest rate as a significant input. The carrying amounts and the estimated fair values of the Company’s principal categories of debt as of March 31, 2024 and June 30, 2023 are as follows: |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Mar. 31, 2024 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | LOSS PER SHARE The Company computes (loss) earnings per share of the Company’s common stock, par value $0.01 (the “Common Stock”) using the treasury stock method. 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. The reconciliations between basic and diluted earnings per share attributable to Catalent common shareholders for the three and nine months ended March 31, 2024 and 2023, respectively, are as follows: Three Months Ended Nine Months Ended (In millions except per share data) 2024 2023 2024 2023 Net loss $ (101) $ (227) $ (1,066) $ (146) Weighted average shares outstanding - basic 182 181 181 180 Weighted average dilutive securities issuable - stock plans — — — — Weighted average shares outstanding - diluted 182 181 181 180 Loss per share: Basic $ (0.56) $ (1.26) $ (5.87) $ (0.81) Diluted $ (0.56) $ (1.26) $ (5.87) $ (0.81) Shares with an antidilutive effect on the weighted average shares outstanding for the three and nine months ended March 31, 2024 and 2023 were not material. |
Other (Income)_ Expense, Net
Other (Income)/ Expense, Net | 9 Months Ended |
Mar. 31, 2024 | |
Other Income and Expenses [Abstract] | |
Other Income and Other Expense Disclosure [Text Block] | OTHER EXPENSE (INCOME), NET The components of other expense (income), net for the three and nine months ended March 31, 2024 and 2023 are as follows: Three Months Ended Nine Months Ended (Dollars in millions) 2024 2023 2024 2023 Foreign currency losses (gains) (1) $ 2 $ (4) 17 (5) Other 2 — 4 3 Total other expense (income), net $ 4 $ (4) $ 21 $ (2) (1) 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, 2024 | |
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, 2024, the Company had euro-denominated debt outstanding of $893 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 following table summarizes net investment hedge activity during the three and nine months ended March 31, 2024 and 2023. Three Months Ended Nine Months Ended (Dollars in millions) 2024 2023 2024 2023 Unrealized foreign exchange gain (loss) within other comprehensive income $ 17 $ (16) $ 11 $ (20) The net accumulated gain on the instrument designated as a hedge as of March 31, 2024 within other comprehensive loss was approximately $108 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 February 2021, the Company entered into a seven year 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 was fixed at 0.9985%. To conform with the adoption of Topic 848, Reference Rate Reform and the Eighth Amendment , the Company amended the 2021 Rate Swap in June 2023 (the “2023 Rate Swap”). The 2023 Rate Swap continues to effectively fix the rate of interest payable on the same portion of our U.S. dollar-denominated term loans under our senior secured credit facilities. As a result of the 2023 Rate Swap, the variable portion of the applicable interest rate on $500 million of the U.S. dollar-denominated term loans is now effectively fixed at 0.9431%. The 2023 Rate Swap continues to qualify for 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 2023 Rate Swap amendment is reported in cash provided by operating activities in the consolidated statements of cash flows. The unrealized gain recorded in stockholder's equity related to the mark-to-market change in the 2023 Rate Swap during the nine months ended March 31, 2024 was $5 million. A summary of the estimated fair value of the 2023 Rate Swap reported in the consolidated balance sheets is stated in the table below: March 31, 2024 June 30, 2023 (Dollars in millions) Balance Sheet Classification Estimated Fair Value Balance Sheet Classification Estimated Fair Value Interest-rate swap Other long-term assets $ 67 Other long-term assets $ 62 |
Fair Value Measures and Disclos
Fair Value Measures and Disclosures | 9 Months Ended |
Mar. 31, 2024 | |
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, 2024 and June 30, 2023: (Dollars in millions) Basis of Fair Value Measurement March 31, 2024 Total Level 1 Level 2 Level 3 Assets: Interest-rate swap $ 67 $ — $ 67 $ — Trading securities 1 1 — — June 30, 2023 Assets: Interest-rate swap $ 62 $ — $ 62 $ — Trading securities 1 1 — — The fair value of the 2021 Rate Swap was determined, and the fair value of the 2023 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. Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis Long-lived assets, goodwill, and other intangible assets are subject to non-recurring fair value measurement for the evaluation of potential impairment. Except as noted in Note 4, Goodwill , t |
Income Taxes
Income Taxes | 9 Months Ended |
Mar. 31, 2024 | |
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, 2024 and June 30, 2023, the Company’s reserve against uncertain income tax positions was $3 million and $4 million, respectively. Interest and penalties related to uncertain tax positions are recognized as a component of income tax expense. The Company recorded a provision for income taxes for the three months ended March 31, 2024 of $15 million relative to loss before income taxes of $86 million. 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 income tax expense for the quarter is primarily the result of income tax expense in select international jurisdictions and the inability to recognize income tax benefit on incremental domestic losses. 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. The Company recorded a provision for income taxes for the nine months ended March 31, 2024 of $1 million relative to loss before income taxes of $1.065 billion. The Company recorded a benefit for income taxes for the nine months ended March 31, 2023 of $19 million relative to loss before income taxes of $165 million. The income tax expense for the period is primarily the result of income tax expense in select international jurisdictions and the inability to recognize income tax benefit on incremental domestic losses. |
Employee Retirement Benefit Pla
Employee Retirement Benefit Plans | 9 Months Ended |
Mar. 31, 2024 | |
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) 2024 2023 2024 2023 Components of net periodic benefit cost: Selling, general, and administrative expenses: Service cost $ 1 $ 1 $ 3 $ 3 Other operating expense: Settlement charges 9 — 12 — Other expense, net: Interest cost 3 3 8 7 Expected return on plan assets (2) (2) (6) (6) Amortization (1) — — 1 — Net amount recognized $ 11 $ 2 $ 18 $ 4 (1) Amount represents the amortization of unrecognized actuarial losses. As previously disclosed, the Company notified the trustees of a multi-employer pension plan of its withdrawal from participation in such plan in fiscal 2012. The actuarial review process administered by the plan trustees ended in fiscal 2015. For the nine months ended December 31, 2023, the Company decided to withdraw its participation from a multi-employer pension plan as a result of recent restructuring activities in its Pharma and Consumer Health segment. The liabilities reported reflect the present value of the Company’s expected future long-term obligations. The estimated discounted value of the projected contributions related to such plans was $44 million as of March 31, 2024 and $38 million as of June 30, 2023, and is included within pension liability on the consolidated balance sheets. The annual cash impact associated with the Company’s obligations in such plan is approximately $2 million. The Company terminated its U.S. pension plan and settled with its participants by a lump sum payout or through the purchase of an annuity contract, which was dependent upon the participant’s selection of payment. The Company purchased nonparticipating annuities for participants who did not elect lump sum payouts. Participants who elected a lump sum payout were settled in the nine months ended March 31, 2024 and resulted in $7 million of lump sum payments made with cash from the assets of the qualified pension plan. Participants who elected an annuity contract were settled in the three and nine months ended March 31, 2024 and resulted in $24 million of payments with cash from the assets of the qualified pension plan and $3 million of Company cash. |
Equity and Accumulated Other Co
Equity and Accumulated Other Comprehensive Income (Loss) | 9 Months Ended |
Mar. 31, 2024 | |
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. 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, 2024 and 2023 are presented below. Three Months Ended Nine Months Ended (Dollars in millions) 2024 2023 2024 2023 Foreign currency translation adjustments: Net investment hedge $ 17 $ (16) $ 11 $ (20) Long-term intercompany loans — 9 (2) (1) Translation adjustments (36) 31 (28) 26 Total foreign currency translation adjustment, pretax (19) 24 (19) 5 Tax benefit (5) (3) (3) (5) Total foreign currency translation adjustment, net of tax $ (14) $ 27 $ (16) $ 10 Net change in derivatives and hedges: Net gain (loss) recognized during the period $ 8 $ (3) $ 6 $ 15 Total derivatives and hedges, pretax 8 (3) 6 15 Tax expense (benefit) 3 (1) 3 3 Net change in derivatives and hedges, net of tax $ 5 $ (2) $ 3 $ 12 Net change in minimum pension liability: Net gain recognized during the period $ 9 $ — $ 12 $ — Total pension liability, pretax 9 — 12 — Tax expense 2 — 1 — Net change in minimum pension liability, net of tax $ 7 $ — $ 11 $ — Net change in marketable securities: Net gain recognized during the period $ — $ — $ — $ 1 Amounts reclassified from accumulated other — 2 — 4 Net change in marketable securities, pretax — 2 — 5 Tax expense — — — 1 Net change in marketable securities, net of tax $ — $ 2 $ — $ 4 For the three months ended March 31, 2024 and 2023, 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 Other Total Balance at December 31, 2023 $ (348) $ (48) $ 43 $ (1) $ (354) Other comprehensive (loss) income before (14) — 5 — (9) Amounts reclassified from accumulated other — 7 — — 7 Net current period other comprehensive (loss) income (14) 7 5 — (2) Balance at March 31, 2024 $ (362) $ (41) $ 48 $ (1) $ (356) (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) |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Mar. 31, 2024 | |
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 Warwick 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. On September 15, 2023, the Warwick complaint was amended (together with the original complaint, the “ Warwick Complaint”), which amended complaint expanded the class period to between August 30, 2021 and May 7, 2023, inclusive (the “Class Period”). The Warwick Complaint purports to assert 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, the Warwick Defendants purportedly engaged in accounting and channel stuffing schemes to pad the Company’s revenues and failed to disclose adverse facts that purportedly were known to or recklessly disregarded by the Warwick Defendants. Specifically, the Warwick Complaint alleges that the Warwick Defendants (i) overstated revenue and earnings by prematurely recognizing revenue in violation of U.S. GAAP; (ii) suffered material weaknesses in its internal controls over financial reporting related to revenue recognition; (iii) falsely represented demand for its products while knowingly selling more product to its direct customers than could be sold to healthcare providers and end consumers; (iv) cut corners on safety and control procedures at key production facilities; (v) 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) 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 Warwick Defendants have defenses to the allegations and claims set forth in the complaint and filed a motion to dismiss the Warwick Complaint on November 15, 2023. The plaintiffs filed their opposition to the Company's motion to dismiss on January 12, 2024, and the Company filed its reply to the plaintiffs' opposition on February 15, 2024. The parties are awaiting the court's decision. Husty Derivative Claim In August 2023, an alleged shareholder filed a derivative complaint styled Husty et al. v. Carroll, et al. , No. 23-cv-00891, in Delaware federal court against certain current and former members of the Company's board of directors, (the “ Husty Defendants ” ), and nominally against Catalent, Inc. The complaint mimics the allegations set out in the original complaint filed in the City of Warwick Retirement System action described above and claims that the alleged activities described there led to, and will continue to expose the Company to, costs and damages. On February 20, 2024, the court entered a stipulation staying the case pending the outcome of motion to dismiss that was filed in the City of Warwick Retirement System action. On April 23, 2024, the plaintiff voluntarily dismissed the action without prejudice. Brown Derivative Claim In September 2023, an alleged shareholder filed a derivative complaint styled Brown, et al. v. Chiminski, et al. , Case 3:23-cv-15722, in New Jersey federal court against certain current and former officers and members of the Company's board of directors (the “ Brown Defendants ” ) and nominally against Catalent, Inc. The complaint mimics the allegations set out in the original complaint filed in the City of Warwick Retirement System action described above and claims that the alleged activities described there led to, and will continue to expose the Company to, costs and damages. On January 8, 2024, the court entered a stipulation staying the case pending the outcome of motion to dismiss that was filed in the City of Warwick Retirement System action. On April 19, 2024, the plaintiff voluntarily dismissed the action without prejudice. On May 2, 2024, the Court dismissed the action without prejudice. Subpoenas and Requests for Information From time to time, the Company receives subpoenas or requests for information from various governmental agencies or private parties, including from state attorneys general, the U.S. Department of Justice, and private parties. The Company generally responds to such subpoenas and requests in a timely and thorough manner, which responses sometimes require considerable time and effort and can result in considerable costs being incurred. In June 2023, the Company received a demand from a company stockholder pursuant to 8 Del. C. § 220 to inspect books and records of the Company relating to, among other things, the allegations raised in the Warwick Complaint. The Company has responded to the demand and cannot determine at this time if the books and records demand will lead to litigation. Fire at Biologics Facility During the three months ended December 31, 2023, the Company had a small fire at a facility in its Biologics segment. The fire activated the sprinkler systems, which then caused minor flooding in certain parts of the facility. The Company accrued $9 million for estimated damages, repairs, and lost inventory. The Company is insured for such incidents and has submitted claims for reimbursement. Proceeds from potential reimbursement are not included in the financial statements for the three and nine months ended March 31, 2024. Entry Into an Agreement and Plan of Merger On February 5, 2024, the Company entered into the Agreement and Plan of Merger (the “Merger Agreement”), with Creek Parent, Inc. (“Parent”), a Delaware corporation and a wholly owned subsidiary of Novo Holdings A/S (“Novo Holdings”), and Creek Merger Sub, Inc., a Delaware corporation and a wholly owned subsidiary of Parent (“Merger Sub”). The Merger Agreement provides that, upon the terms and subject to the conditions set forth therein and in accordance with the General Corporation Law of the State of Delaware (the “DGCL”), Merger Sub will be merged with and into the Company (the “Merger”), with the Company surviving the Merger as a wholly owned subsidiary of Parent. Parent will acquire all the issued and outstanding shares of common stock of the Company. At the effective time of the Merger (the “Effective Time”), each share of common stock, par value $0.01 per share, of the Company (such shares, collectively, the “Company Common Stock,” and each, a “Share”) that is issued and outstanding immediately prior to the Effective Time (other than any Shares held by (i) the Company, Parent or Merger Sub or any other direct or indirect wholly owned subsidiary of the Company or Parent immediately prior to the Effective Time, or (ii) a holder who has not voted in favor of the adoption of the Merger Agreement and is entitled to demand and properly demands appraisal of such Shares under the DGCL), will be converted automatically into the right to receive an amount in cash equal to $63.50 per Share, without interest (the “Merger Consideration”). The transaction values the Company at $16.5 billion on an enterprise value basis. Consummation of the Merger is subject to customary closing conditions, including approval of the Merger by the Company’s stockholders (which has not been obtained at this stage). Further conditions include (i) receipt of certain governmental waivers, consents, clearances, decisions, declarations, approvals, and expirations of applicable waiting periods, including the expiration or early termination of the waiting period under the U.S. Hart-Scott-Rodino Antitrust Improvements Act of 1976, with respect to (A) the Merger and (B) the sale of three of the Company’s fill-finish sites (which are located in Anagni, Italy, Bloomington, Indiana USA, and Brussels, Belgium) and related assets from Novo Holdings to Novo Nordisk A/S (“Novo Nordisk”), of which Novo Holdings is the controlling shareholder (the “Carve-Out”), and (ii) the absence of any order, injunction or law prohibiting the Merger or the Carve-Out, in each case, without a Burdensome Condition (as defined in the Merger Agreement). Parent’s and Merger Sub’s obligations to close the Merger are also conditioned upon the absence of a Material Adverse Effect (as defined in the Merger Agreement) on the Company. Upon termination of the Merger Agreement with Parent, the Company, under specified circumstances and conditions set forth in the Merger Agreement, could be required to pay Parent a termination fee of approximately $345 million. |
Segment Information
Segment Information | 9 Months Ended |
Mar. 31, 2024 | |
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, 2024 and 2023: (Dollars in millions) Three Months Ended Nine Months Ended 2024 2023 2024 2023 Segment EBITDA reconciled to net (loss) earnings: Biologics $ 49 $ 6 $ 136 $ 299 Pharma and Consumer Health 153 125 380 368 Sub-Total $ 202 $ 131 $ 516 $ 667 Reconciling items to net earnings Unallocated costs (1) (97) (256) (1,033) (394) Depreciation and amortization (126) (106) (359) (308) Interest expense, net (65) (51) (189) (130) Income tax (expense) benefit (15) 55 (1) 19 Net loss $ (101) $ (227) $ (1,066) $ (146) (1) Unallocated costs include restructuring and special items, stock-based compensation, 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 2024 2023 2024 2023 Impairment charges and gain/loss on sale of assets (a) $ (13) $ (6) $ (27) $ (4) Stock-based compensation (17) (6) (52) (35) Restructuring and other special items (b) (20) (17) (126) (59) Goodwill impairment charges (c) — (210) (687) (210) Pension settlement charges (9) — (12) — Other (expense) income, net (d) (4) 4 (21) 2 Unallocated corporate costs, net (34) (21) (108) (88) Total unallocated costs $ (97) $ (256) $ (1,033) $ (394) (a) Impairment charges and gain/loss on sale of assets for the three and nine months ended March 31, 2024 includes right-of-use asset impairment charges associated with under utilized facilities in our Biologics segment. Impairment charges and gain/loss on sale of assets for the three and nine months ended March 31, 2024 includes fixed asset impairment charges associated with equipment for a product with significant decline in demand in the Company's Biologics segment. (b) Restructuring and other special items during the three and nine months ended March 31, 2024 include restructuring charges associated with plans to reduce costs, consolidate facilities, and optimize our infrastructure across the organization. For further details on restructuring charges, see Note 8, Restructuring Costs to the Consolidated Financial Statements. 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 8, Restructuring Costs to the Consolidated Financial Statements. (c) Goodwill impairment charges during the nine months ended March 31, 2024 were associated with the Company's Consumer Health and Biomodalities reporting units, which are part of the Company's Pharma and Consumer Health and Biologics segments, respectively. For further details, see Note 4, Goodwill to the Consolidated Financial Statements. 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 4, Goodwill . (d) Other expense, net during the three and nine months ended March 31, 2024 and 2023 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 $ 5,263 $ 5,746 Pharma and Consumer Health 4,588 4,867 Corporate and eliminations 28 164 Total assets $ 9,879 $ 10,777 |
Supplemental Balance Sheet Info
Supplemental Balance Sheet Information | 9 Months Ended |
Mar. 31, 2024 | |
Balance Sheet Related Disclosures [Abstract] | |
Supplemental Balance Sheet Information | SUPPLEMENTAL BALANCE SHEET INFORMATION Supplemental balance sheet information at March 31, 2024 and June 30, 2023 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 $ 747 $ 781 Work-in-process 211 186 Total inventories, gross 958 967 Inventory cost adjustment (216) (190) Total inventories $ 742 $ 777 Prepaid expenses and other Prepaid expenses and other consist of the following: (Dollars in millions) March 31, June 30, Prepaid expenses $ 55 $ 53 Short-term contract assets 472 399 Spare parts supplies 28 24 Prepaid income tax 84 77 Non-U.S. value-added tax 59 38 Other current assets 46 42 Total prepaid expenses and other $ 744 $ 633 Other accrued liabilities Other accrued liabilities consist of the following: (Dollars in millions) March 31, June 30, Contract liabilities $ 249 $ 167 Accrued employee-related expenses 146 160 Accrued expenses 120 134 Operating lease liabilities 10 11 Restructuring accrual 16 19 Accrued interest 28 35 Accrued income tax 14 44 Total other accrued liabilities $ 583 $ 570 Allowance for credit losses The rollforward of allowance for credit losses for the nine months ended March 31, 2024 is as follows: Allowance for credit losses (Dollars in millions) Balance, June 30, 2023 $ 46 Charges (Credits) (6) Write-offs (8) Balance, March 31, 2024 $ 32 |
Subsequent Events (Notes)
Subsequent Events (Notes) | 9 Months Ended |
Mar. 31, 2024 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | 17. SUBSEQUENT EVENTS Entry Into an Agreement and Plan of Merger On February 5, 2024, the Company entered into the Agreement and Plan of Merger (the “Merger Agreement”), with Creek Parent, Inc. (“Parent”), a Delaware corporation and a wholly owned subsidiary of Novo Holdings A/S (“Novo Holdings”), and Creek Merger Sub, Inc., a Delaware corporation and a wholly owned subsidiary of Parent (“Merger Sub”). The Merger Agreement provides that, upon the terms and subject to the conditions set forth therein and in accordance with the General Corporation Law of the State of Delaware (the “DGCL”), Merger Sub will be merged with and into the Company (the “Merger”), with the Company surviving the Merger as a wholly owned subsidiary of Parent. Parent will acquire all the issued and outstanding shares of common stock of the Company. At the effective time of the Merger (the “Effective Time”), each share of common stock, par value $0.01 per share, of the Company (such shares, collectively, the “Company Common Stock,” and each, a “Share”) that is issued and outstanding immediately prior to the Effective Time (other than any Shares held by (i) the Company, Parent or Merger Sub or any other direct or indirect wholly owned subsidiary of the Company or Parent immediately prior to the Effective Time, or (ii) a holder who has not voted in favor of the adoption of the Merger Agreement and is entitled to demand and properly demands appraisal of such Shares under the DGCL), will be converted automatically into the right to receive an amount in cash equal to $63.50 per Share, without interest (the “Merger Consideration”). The transaction values the Company at $16.5 billion on an enterprise value basis. Consummation of the Merger is subject to customary closing conditions, including approval of the Merger by the Company’s stockholders (which has not been obtained at this stage). Further conditions include (i) receipt of certain governmental waivers, consents, clearances, decisions, declarations, approvals, and expirations of applicable waiting periods, including the expiration or early termination of the waiting period under the U.S. Hart-Scott-Rodino Antitrust Improvements Act of 1976, with respect to (A) the Merger and (B) the sale of three of the Company’s fill-finish sites (which are located in Anagni, Italy, Bloomington, Indiana USA, and Brussels, Belgium) and related assets from Novo Holdings to Novo Nordisk A/S (“Novo Nordisk”), of which Novo Holdings is the controlling shareholder (the “Carve-Out”), and (ii) the absence of any order, injunction or law prohibiting the Merger or the Carve-Out, in each case, without a Burdensome Condition (as defined in the Merger Agreement). Parent’s and Merger Sub’s obligations to close the Merger are also conditioned upon the absence of a Material Adverse Effect (as defined in the Merger Agreement) on the Company. |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Mar. 31, 2024 | |
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 three and nine months ended March 31, 2024 are not necessarily indicative of the results that may be expected for the year ending June 30, 2024. The consolidated balance sheet at June 30, 2023 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, 2023 filed with the Securities and Exchange Commission (the “SEC”) on December 8, 2023. Reportable Segments Set forth below is a summary description of the Company's two current operating and reportable segments. Biologics—The Biologics segment provides development and manufacturing for biologic proteins; cell, gene, and other nucleic acid therapies; plasmid DNA ("pDNA"); induced pluripotent stem cells (" Pharma and Consumer Health—The Pharma and Consumer Health segment 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. |
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/(loss) utilizing period-end exchange rates. Since July 1, 2018, the Company has accounted for its Argentine operations as highly inflationary. |
Depreciation, Depletion, and Amortization | Depreciation Depreciation expense was $92 million and $72 million for the three months ended March 31, 2024 and 2023, respectively. Depreciation expense was $258 million and $207 million for the nine months ended March 31, 2024 and 2023, respectively. Depreciation expense includes amortization of assets related to finance leases. The Company charges repairs and maintenance costs to expense as incurred. Amortization |
Research and Development Costs | Research and Development Costs |
Revenue Recognition (Tables)
Revenue Recognition (Tables) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Disaggregation of Revenue [Line Items] | ||||
Net revenue | $ 1,074 | $ 1,037 | $ 3,080 | $ 3,208 |
Elimination of revenue attributable to multiple locations | (49) | (33) | $ (113) | (94) |
Revenue Recognition and Deferred Revenue [Abstract] | ||||
Contractual Liabilities | The contract liabilities balances (current and non-current) as of March 31, 2024 and June 30, 2023 are as follows: (Dollars in millions) Balance at June 30, 2023 $ 180 Balance at March 31, 2024 $ 255 Revenue recognized in the period from amounts included in contracts liability at the beginning of the period: $ (122) | |||
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) 2024 2023 2024 2023 United States $ 690 $ 685 $ 1,990 $ 2,117 Europe 345 306 942 936 Other 88 79 261 249 Elimination of revenue attributable to multiple locations (49) (33) (113) (94) Total $ 1,074 $ 1,037 $ 3,080 $ 3,208 | |||
United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenue | 690 | 685 | $ 1,990 | 2,117 |
Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenue | 345 | 306 | 942 | 936 |
International Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenue | $ 88 | $ 79 | $ 261 | $ 249 |
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, 2024 and 2023, by type of activity and reportable segment (in millions): Three Months Ended March 31, 2024 Biologics Pharma and Consumer Health Total Manufacturing & commercial product supply $ 261 $ 402 $ 663 Development services & clinical supply 200 211 411 Total $ 461 $ 613 $ 1,074 Inter-segment revenue elimination — Combined net revenue $ 1,074 Three Months Ended March 31, 2023 Biologics Pharma and Consumer Health Total Manufacturing & commercial product supply $ 133 $ 349 $ 482 Development services & clinical supply 342 214 556 Total $ 475 $ 563 $ 1,038 Inter-segment revenue elimination (1) Combined net revenue $ 1,037 Nine Months Ended March 31, 2024 Biologics Pharma and Consumer Health Total Manufacturing & commercial product supply $ 821 $ 1,109 $ 1,930 Development services & clinical supply 526 625 1,151 Total $ 1,347 $ 1,734 $ 3,081 Inter-segment revenue elimination (1) Combined net revenue $ 3,080 Nine Months Ended March 31, 2023 Biologics Pharma and Consumer Health Total Manufacturing & commercial product supply $ 304 $ 1,027 $ 1,331 Development services & clinical supply 1,274 605 1,879 Total $ 1,578 $ 1,632 $ 3,210 Inter-segment revenue elimination (2) Combined net revenue $ 3,208 |
Goodwill (Tables)
Goodwill (Tables) | 9 Months Ended |
Mar. 31, 2024 | |
Goodwill Disclosure [Abstract] | |
Goodwill - Rollforward | The following table summarizes the changes between June 30, 2023 and March 31, 2024 in the carrying amount of goodwill in total and by segment: (Dollars in millions) Biologics Pharma and Consumer Health Total Balance at June 30, 2023 $ 1,563 $ 1,476 $ 3,039 Foreign currency translation adjustments (4) (9) (13) Impairment (1) (392) (295) (687) Balance at March 31, 2024 $ 1,167 $ 1,172 $ 2,339 (1) Represents gross impairment charges in the period. Accumulated goodwill impairment charges amount to $897 million as of March 31, 2024. Goodwill Impairment Charges As a result of the Consumer Health reporting unit's underperformance of recent operating results relative to expectations, the current macroeconomic conditions impacting the consumer health and biotechnology industries, and increased interest rates, the Company assessed the current and future economic outlook as of September 30, 2023 for its reporting units in its Pharma and Consumer Health and Biologics segments and identified indicators for impairment of the goodwill previously recorded for two of its reporting units. The evaluation began with a qualitative assessment of the Company's Consumer Health and Biomodalities reporting units to determine if it was more likely than not that the fair value of the reporting units 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 and Biomodalities reporting units, which led to a quantitative assessment for the corresponding 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 terminal revenue growth rate of 3.5% and discount rates ranging from 9% to 10% in its estimation of fair value. The evaluation performed resulted in impairment charges of $687 million with respect to the Consumer Health and Biomodalities reporting units. While the Company believes the assumptions it used were reasonable and commensurate with the views of a market participant, changes in key assumptions, including increasing the discount rate, lowering forecasts for revenue and operating margin or lowering the long-term growth rate could lead to the conclusion that an additional impairment was appropriate. A qualitative assessment was performed as of March 31, 2024, which yielded no indicators of impairment. 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 Oth_2
Long-Term Obligations and Other Short-Term Borrowings (Tables) | 3 Months Ended | 9 Months Ended |
Mar. 31, 2024 | Mar. 31, 2024 | |
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, 2024 and June 30, 2023: (Dollars in millions) Maturity March 31, 2024 June 30, 2023 Senior secured credit facilities Term loan facility B-3 (7.443% as of March 31, 2024) February 2028 $ 1,408 $ 1,418 Term loan facility B-4 (8.329% as of March 31, 2024) February 2028 600 — Revolving credit facility November 2027 — 500 5.000% senior notes due 2027 July 2027 500 500 2.375% Euro senior notes due 2028 (1) March 2028 893 904 3.125% senior notes due 2029 February 2029 550 550 3.500% senior notes due 2030 April 2030 650 650 Financing lease obligations 2024 to 2038 392 341 Other obligations (2) 2024 to 2028 34 25 Unamortized discount and debt issuance costs (47) (39) Total debt $ 4,980 $ 4,849 Less: current portion of long-term obligations and other short-term 47 536 Long-term obligations, less current portion $ 4,933 $ 4,313 (1) The change in the carrying value of this euro-denominated debt was due to fluctuations in foreign currency exchange rates. (2) The increase in other obligations is primarily associated with $15 million in proceeds from a failed sale-leaseback transaction that occurred in the three months ended September 30, 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, 2024 and June 30, 2023 are as follows: March 31, 2024 June 30, 2023 (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 $ 495 $ 500 $ 482 2.375% Euro senior notes due 2028 Level 2 893 849 904 784 3.125% senior notes due 2029 Level 2 550 528 550 481 3.500% senior notes due 2030 Level 2 650 631 650 566 Senior secured credit facilities & other Level 2 2,434 2,161 2,284 2,141 Subtotal $ 5,027 $ 4,664 $ 4,888 $ 4,454 Unamortized discount and debt issuance (47) — (39) — Total debt $ 4,980 $ 4,664 $ 4,849 $ 4,454 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Mar. 31, 2024 | |
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, 2024 and 2023, respectively, are as follows: Three Months Ended Nine Months Ended (In millions except per share data) 2024 2023 2024 2023 Net loss $ (101) $ (227) $ (1,066) $ (146) Weighted average shares outstanding - basic 182 181 181 180 Weighted average dilutive securities issuable - stock plans — — — — Weighted average shares outstanding - diluted 182 181 181 180 Loss per share: Basic $ (0.56) $ (1.26) $ (5.87) $ (0.81) Diluted $ (0.56) $ (1.26) $ (5.87) $ (0.81) |
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, 2024 and 2023 were not material. |
Other Income and Expense (Table
Other Income and Expense (Tables) | 9 Months Ended |
Mar. 31, 2024 | |
Other Income and Expenses [Abstract] | |
Schedule of Other Nonoperating Income (Expense) | The components of other expense (income), net for the three and nine months ended March 31, 2024 and 2023 are as follows: Three Months Ended Nine Months Ended (Dollars in millions) 2024 2023 2024 2023 Foreign currency losses (gains) (1) $ 2 $ (4) 17 (5) Other 2 — 4 3 Total other expense (income), net $ 4 $ (4) $ 21 $ (2) (1) 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, 2024 | |
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, 2024 and 2023. Three Months Ended Nine Months Ended (Dollars in millions) 2024 2023 2024 2023 Unrealized foreign exchange gain (loss) within other comprehensive income $ 17 $ (16) $ 11 $ (20) |
Schedule of Interest Rate Derivatives | A summary of the estimated fair value of the 2023 Rate Swap reported in the consolidated balance sheets is stated in the table below: March 31, 2024 June 30, 2023 (Dollars in millions) Balance Sheet Classification Estimated Fair Value Balance Sheet Classification Estimated Fair Value Interest-rate swap Other long-term assets $ 67 Other long-term assets $ 62 |
Fair Value Measures and Discl_2
Fair Value Measures and Disclosures (Tables) | 9 Months Ended |
Mar. 31, 2024 | |
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, 2024 and June 30, 2023: (Dollars in millions) Basis of Fair Value Measurement March 31, 2024 Total Level 1 Level 2 Level 3 Assets: Interest-rate swap $ 67 $ — $ 67 $ — Trading securities 1 1 — — June 30, 2023 Assets: Interest-rate swap $ 62 $ — $ 62 $ — Trading securities 1 1 — — |
Employee Retirement Benefit P_2
Employee Retirement Benefit Plans (Tables) | 9 Months Ended |
Mar. 31, 2024 | |
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) 2024 2023 2024 2023 Components of net periodic benefit cost: Selling, general, and administrative expenses: Service cost $ 1 $ 1 $ 3 $ 3 Other operating expense: Settlement charges 9 — 12 — Other expense, net: Interest cost 3 3 8 7 Expected return on plan assets (2) (2) (6) (6) Amortization (1) — — 1 — Net amount recognized $ 11 $ 2 $ 18 $ 4 |
Equity and Accumulated Other _2
Equity and Accumulated Other Comprehensive Income (Loss) (Tables) | 9 Months Ended |
Mar. 31, 2024 | |
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, 2024 and 2023 are presented below. Three Months Ended Nine Months Ended (Dollars in millions) 2024 2023 2024 2023 Foreign currency translation adjustments: Net investment hedge $ 17 $ (16) $ 11 $ (20) Long-term intercompany loans — 9 (2) (1) Translation adjustments (36) 31 (28) 26 Total foreign currency translation adjustment, pretax (19) 24 (19) 5 Tax benefit (5) (3) (3) (5) Total foreign currency translation adjustment, net of tax $ (14) $ 27 $ (16) $ 10 Net change in derivatives and hedges: Net gain (loss) recognized during the period $ 8 $ (3) $ 6 $ 15 Total derivatives and hedges, pretax 8 (3) 6 15 Tax expense (benefit) 3 (1) 3 3 Net change in derivatives and hedges, net of tax $ 5 $ (2) $ 3 $ 12 Net change in minimum pension liability: Net gain recognized during the period $ 9 $ — $ 12 $ — Total pension liability, pretax 9 — 12 — Tax expense 2 — 1 — Net change in minimum pension liability, net of tax $ 7 $ — $ 11 $ — Net change in marketable securities: Net gain recognized during the period $ — $ — $ — $ 1 Amounts reclassified from accumulated other — 2 — 4 Net change in marketable securities, pretax — 2 — 5 Tax expense — — — 1 Net change in marketable securities, net of tax $ — $ 2 $ — $ 4 |
Schedule of Accumulated Other Comprehensive Income (Loss) | For the three months ended March 31, 2024 and 2023, 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 Other Total Balance at December 31, 2023 $ (348) $ (48) $ 43 $ (1) $ (354) Other comprehensive (loss) income before (14) — 5 — (9) Amounts reclassified from accumulated other — 7 — — 7 Net current period other comprehensive (loss) income (14) 7 5 — (2) Balance at March 31, 2024 $ (362) $ (41) $ 48 $ (1) $ (356) (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) |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Mar. 31, 2024 | |
Segment Reporting [Abstract] | |
Reconciliation of Earnings/(Loss) from Continuing Operations to EBITDA | (Dollars in millions) Three Months Ended Nine Months Ended 2024 2023 2024 2023 Segment EBITDA reconciled to net (loss) earnings: Biologics $ 49 $ 6 $ 136 $ 299 Pharma and Consumer Health 153 125 380 368 Sub-Total $ 202 $ 131 $ 516 $ 667 Reconciling items to net earnings Unallocated costs (1) (97) (256) (1,033) (394) Depreciation and amortization (126) (106) (359) (308) Interest expense, net (65) (51) (189) (130) Income tax (expense) benefit (15) 55 (1) 19 Net loss $ (101) $ (227) $ (1,066) $ (146) (1) Unallocated costs include restructuring and special items, stock-based compensation, 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 2024 2023 2024 2023 Impairment charges and gain/loss on sale of assets (a) $ (13) $ (6) $ (27) $ (4) Stock-based compensation (17) (6) (52) (35) Restructuring and other special items (b) (20) (17) (126) (59) Goodwill impairment charges (c) — (210) (687) (210) Pension settlement charges (9) — (12) — Other (expense) income, net (d) (4) 4 (21) 2 Unallocated corporate costs, net (34) (21) (108) (88) Total unallocated costs $ (97) $ (256) $ (1,033) $ (394) (a) Impairment charges and gain/loss on sale of assets for the three and nine months ended March 31, 2024 includes right-of-use asset impairment charges associated with under utilized facilities in our Biologics segment. Impairment charges and gain/loss on sale of assets for the three and nine months ended March 31, 2024 includes fixed asset impairment charges associated with equipment for a product with significant decline in demand in the Company's Biologics segment. (b) Restructuring and other special items during the three and nine months ended March 31, 2024 include restructuring charges associated with plans to reduce costs, consolidate facilities, and optimize our infrastructure across the organization. For further details on restructuring charges, see Note 8, Restructuring Costs to the Consolidated Financial Statements. 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 8, Restructuring Costs to the Consolidated Financial Statements. (c) Goodwill impairment charges during the nine months ended March 31, 2024 were associated with the Company's Consumer Health and Biomodalities reporting units, which are part of the Company's Pharma and Consumer Health and Biologics segments, respectively. For further details, see Note 4, Goodwill to the Consolidated Financial Statements. 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 4, Goodwill . (d) Other expense, net during the three and nine months ended March 31, 2024 and 2023 primarily includes foreign currency remeasurement losses/gains. |
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 $ 5,263 $ 5,746 Pharma and Consumer Health 4,588 4,867 Corporate and eliminations 28 164 Total assets $ 9,879 $ 10,777 |
Supplemental Balance Sheet In_2
Supplemental Balance Sheet Information (Tables) | 9 Months Ended |
Mar. 31, 2024 | |
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 $ 747 $ 781 Work-in-process 211 186 Total inventories, gross 958 967 Inventory cost adjustment (216) (190) Total inventories $ 742 $ 777 |
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 $ 55 $ 53 Short-term contract assets 472 399 Spare parts supplies 28 24 Prepaid income tax 84 77 Non-U.S. value-added tax 59 38 Other current assets 46 42 Total prepaid expenses and other $ 744 $ 633 |
Other Accrued Liabilities | Other accrued liabilities Other accrued liabilities consist of the following: (Dollars in millions) March 31, June 30, Contract liabilities $ 249 $ 167 Accrued employee-related expenses 146 160 Accrued expenses 120 134 Operating lease liabilities 10 11 Restructuring accrual 16 19 Accrued interest 28 35 Accrued income tax 14 44 Total other accrued liabilities $ 583 $ 570 |
Basis of Presentation and Sum_2
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, 2024 | Mar. 31, 2024 | Mar. 31, 2023 | |
Research and Development Expense [Abstract] | |||
Research and Development Costs | Research and Development Costs | ||
Research and Development Expense | $ 4 | $ 12 | $ 13 |
Basis of Presentation and Sum_3
Basis of Presentation and Summary of Significant Accounting Policies Concentrations of Credit Risk and Major Customers (Details) | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2024 Rate | Mar. 31, 2023 | Mar. 31, 2024 Rate | Mar. 31, 2023 | Jun. 30, 2023 Rate | |
Fair Value, Concentration of Risk, Financial Assets, Balance Sheet Groupings [Abstract] | |||||
Percentage, trade receivables and current contract asset values, Net | 31% | 31% | 20% | ||
Segment Reporting, Disclosure of Major Customers | 14 | 11 | 16 | 10 |
Basis of Presentation and Sum_4
Basis of Presentation and Summary of Significant Accounting Polices Depreciation (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Depreciation, Depletion and Amortization [Abstract] | ||||
Depreciation, Depletion, and Amortization | Depreciation Depreciation expense was $92 million and $72 million for the three months ended March 31, 2024 and 2023, respectively. Depreciation expense was $258 million and $207 million for the nine months ended March 31, 2024 and 2023, respectively. Depreciation expense includes amortization of assets related to finance leases. The Company charges repairs and maintenance costs to expense as incurred. Amortization | |||
Depreciation Cost | $ 92 | $ 72 | $ 258 | $ 207 |
Accounting Changes and Error _2
Accounting Changes and Error Corrections (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2022 | |
Accounting Changes and Error Corrections [Abstract] | |||||||
Other Accrued Liabilities | $ 646 | ||||||
Total current liabilities | $ 1,007 | $ 1,007 | 1,098 | $ 1,530 | |||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||
Other Accrued Liabilities | 646 | ||||||
Total current liabilities | 1,007 | 1,007 | 1,098 | 1,530 | |||
Total liabilities | 6,268 | 6,268 | 5,733 | 6,166 | |||
Accumulated deficit | (804) | (804) | 518 | 262 | |||
Equity, Attributable to Parent | 3,611 | 3,611 | 4,775 | 4,611 | |||
Prepaid expenses and other | 744 | 744 | 626 | 633 | |||
Assets, Current | 2,523 | 2,523 | 2,917 | 2,692 | |||
Deferred Income Tax Assets, Net | 66 | 66 | 55 | ||||
Assets | 9,879 | 9,879 | 10,508 | 10,777 | |||
Liabilities and Equity | 9,879 | 9,879 | 10,508 | 10,777 | |||
Net revenue | 1,074 | $ 1,037 | 3,080 | $ 3,208 | |||
Gross margin | 229 | 180 | 569 | 825 | |||
Operating earnings | (17) | (235) | (855) | (37) | |||
Deferred Tax Liabilities, Gross | 64 | 64 | 76 | ||||
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | (86) | (282) | (1,065) | (165) | |||
Income tax expense(benefit) | 15 | (55) | 1 | (19) | |||
Net earnings/(loss) | $ (101) | $ (227) | $ (1,066) | $ (146) | (1,066) | ||
Earnings Per Share, Basic | $ (0.56) | $ (1.26) | $ (5.87) | $ (0.81) | |||
Earnings Per Share, Diluted | $ (0.56) | $ (1.26) | $ (5.87) | $ (0.81) | |||
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest | $ (103) | $ (200) | $ (1,068) | $ (120) | |||
Net earnings/(loss) | (1,066) | (146) | |||||
Provision/(benefit) for deferred income taxes | 24 | 69 | |||||
Other assets/accrued liabilities, net — current and non-current | (118) | (245) | |||||
Net cash provided by operating activities | 54 | 58 | |||||
Net Cash Provided by (Used in) Investing Activities | (253) | (834) | |||||
Net Cash Provided by (Used in) Financing Activities | 84 | 572 | |||||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect | (118) | (197) | |||||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 162 | 252 | 162 | 252 | 280 | $ 449 | |
Share issuances related to stock-based compensation | 52 | 35 | |||||
Proceeds from Stock Options Exercised | (9) | (4) | |||||
APIC, Share-based Payment Arrangement, ESPP, Increase for Cost Recognition | 2 | 2 | 7 | ||||
Other Comprehensive Income (Loss), Net of Tax | (2) | 27 | (2) | 26 | (2) | ||
Inventories | 742 | 742 | 777 | ||||
Cost of sales | 845 | 857 | 2,511 | 2,383 | |||
Deferred Tax Liabilities, Tax Deferred Income | 197 | ||||||
Total liabilities | 6,268 | 6,268 | 5,733 | 6,166 | |||
Accumulated deficit | (804) | (804) | 518 | 262 | |||
Equity, Attributable to Parent | 3,611 | 3,611 | 4,775 | 4,611 | |||
Inventories | 742 | 742 | 777 | ||||
Biologics | |||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||
Assets | 5,263 | 5,263 | 5,746 | ||||
Biologics | Manufacturing & Commercial Product Supply | |||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||
Net revenue | 261 | 133 | 821 | 304 | |||
Biologics | Development Services | |||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||
Net revenue | 200 | 342 | 526 | 1,274 | |||
PharmaConsumerHealth | |||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||
Assets | 4,588 | 4,588 | 4,867 | ||||
PharmaConsumerHealth | Manufacturing & Commercial Product Supply | |||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||
Net revenue | 402 | 349 | 1,109 | 1,027 | |||
PharmaConsumerHealth | Development Services | |||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||
Net revenue | 211 | 214 | 625 | 605 | |||
Total Catalent before inter-segment revenue elimination | Manufacturing & Commercial Product Supply | |||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||
Net revenue | 663 | 482 | 1,930 | 1,331 | |||
Total Catalent before inter-segment revenue elimination | Development Services | |||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||
Net revenue | $ 411 | $ 556 | $ 1,151 | $ 1,879 | |||
Previously Reported | |||||||
Accounting Changes and Error Corrections [Abstract] | |||||||
Other Accrued Liabilities | 620 | ||||||
Total current liabilities | 1,072 | ||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||
Other Accrued Liabilities | 620 | ||||||
Total current liabilities | 1,072 | ||||||
Total liabilities | 5,712 | ||||||
Accumulated deficit | 538 | ||||||
Equity, Attributable to Parent | 4,795 | ||||||
Prepaid expenses and other | 625 | ||||||
Assets, Current | 2,916 | ||||||
Assets | 10,507 | ||||||
Liabilities and Equity | 10,507 | ||||||
Deferred Tax Liabilities, Gross | 202 | ||||||
Total liabilities | 5,712 | ||||||
Accumulated deficit | 538 | ||||||
Equity, Attributable to Parent | 4,795 | ||||||
Restatement Adjustment | |||||||
Accounting Changes and Error Corrections [Abstract] | |||||||
Other Accrued Liabilities | 26 | ||||||
Total current liabilities | 26 | ||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||
Other Accrued Liabilities | 26 | ||||||
Total current liabilities | 26 | ||||||
Total liabilities | 21 | ||||||
Accumulated deficit | (20) | ||||||
Equity, Attributable to Parent | (20) | ||||||
Prepaid expenses and other | 1 | ||||||
Assets, Current | 1 | ||||||
Assets | 1 | ||||||
Liabilities and Equity | $ 1 | ||||||
Total liabilities | 21 | ||||||
Accumulated deficit | (20) | ||||||
Equity, Attributable to Parent | (20) | ||||||
Revision of Prior Period, Adjustment [Member] | |||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||
Deferred Tax Liabilities, Gross | $ (5) |
Revenue from Contract with Cust
Revenue from Contract with Customer (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Disaggregation of Revenue [Line Items] | ||||
Net revenue | $ 1,074,000,000 | $ 1,037,000,000 | $ 3,080,000,000 | $ 3,208,000,000 |
Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenue | 1,074,000,000 | |||
Operating Segments Excluding Intersegment Elimination | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenue | 1,074,000,000 | 1,038,000,000 | 3,081,000,000 | 3,210,000,000 |
Biologics | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenue | 461,000,000 | 475,000,000 | 1,347,000,000 | 1,578,000,000 |
PharmaConsumerHealth | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenue | 613,000,000 | 563,000,000 | 1,734,000,000 | 1,632,000,000 |
Total Catalent Segment | Intersegment Eliminations | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenue | 0 | (1,000,000) | (1,000,000) | (2,000,000) |
Manufacturing & Commercial Product Supply | Biologics | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenue | 261,000,000 | 133,000,000 | 821,000,000 | 304,000,000 |
Manufacturing & Commercial Product Supply | PharmaConsumerHealth | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenue | 402,000,000 | 349,000,000 | 1,109,000,000 | 1,027,000,000 |
Development Services | Biologics | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenue | 200,000,000 | 342,000,000 | 526,000,000 | 1,274,000,000 |
Development Services | PharmaConsumerHealth | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenue | $ 211,000,000 | $ 214,000,000 | $ 625,000,000 | $ 605,000,000 |
Revenue Recognition Disaggregat
Revenue Recognition Disaggregation of Revenue by type of activity and reporting segment (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Disaggregation of Revenue [Line Items] | ||||
Net revenue | $ 1,074,000,000 | $ 1,037,000,000 | $ 3,080,000,000 | $ 3,208,000,000 |
Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenue | 1,074,000,000 | |||
Operating Segments Excluding Intersegment Elimination | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenue | 1,074,000,000 | $ 1,038,000,000 | 3,081,000,000 | $ 3,210,000,000 |
Greater Than One Year Member [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue, Remaining Performance Obligation, Percentage to be recognized over the next six months | 26% | 26% | ||
Biologics | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenue | 461,000,000 | $ 475,000,000 | 1,347,000,000 | $ 1,578,000,000 |
Biologics | Manufacturing & Commercial Product Supply | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenue | 261,000,000 | 133,000,000 | 821,000,000 | 304,000,000 |
Biologics | Development Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenue | 200,000,000 | 342,000,000 | 526,000,000 | 1,274,000,000 |
PharmaConsumerHealth | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenue | 613,000,000 | 563,000,000 | 1,734,000,000 | 1,632,000,000 |
PharmaConsumerHealth | Manufacturing & Commercial Product Supply | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenue | 402,000,000 | 349,000,000 | 1,109,000,000 | 1,027,000,000 |
PharmaConsumerHealth | Development Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenue | 211,000,000 | 214,000,000 | 625,000,000 | 605,000,000 |
Total Catalent before inter-segment revenue elimination | Manufacturing & Commercial Product Supply | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenue | 663,000,000 | 482,000,000 | 1,930,000,000 | 1,331,000,000 |
Total Catalent before inter-segment revenue elimination | Development Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenue | 411,000,000 | 556,000,000 | 1,151,000,000 | 1,879,000,000 |
Total Catalent Segment | Intersegment Eliminations | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenue | $ 0 | $ (1,000,000) | $ (1,000,000) | $ (2,000,000) |
Revenue Recognition Disaggreg_2
Revenue Recognition Disaggregation of Revenue by Geography (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Disaggregation of Revenue [Line Items] | ||||
Elimination of revenue attributable to multiple locations | $ (49) | $ (33) | $ (113) | $ (94) |
Net revenue | 1,074 | 1,037 | 3,080 | 3,208 |
United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenue | 690 | 685 | 1,990 | 2,117 |
Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenue | 345 | 306 | 942 | 936 |
International Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenue | $ 88 | $ 79 | $ 261 | $ 249 |
Revenue Recognition Contractual
Revenue Recognition Contractual Liabilities (Details) - USD ($) $ in Millions | 9 Months Ended | |
Mar. 31, 2024 | Jun. 30, 2023 | |
Revenue Recognition and Deferred Revenue [Abstract] | ||
Contract with Customer, Liability | $ 255 | $ 180 |
Contract with Customer, Liability, Revenue Recognized | (122) | |
Revenue, Remaining Performance Obligation, Amount | $ 585 |
Revenue Recognition Contractu_2
Revenue Recognition Contractual Assets (Detail) - USD ($) | 3 Months Ended | |
Mar. 31, 2024 | Jun. 30, 2023 | |
Text Block [Abstract] | ||
Contract with Customer, Asset, Purchase | $ 490,000,000 | $ 417,000,000 |
Increase (Decrease) in Contract with Customer, Asset | 73,000,000 | |
Increase (Decrease) in Contract with Customer, Asset percent | $ 0.18 |
Business Combinations Acquisiti
Business Combinations Acquisition Purchase Agreement (Details) - USD ($) $ in Millions | 9 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Business Acquisition [Line Items] | ||
Payments to Acquire Businesses, Net of Cash Acquired | $ 0 | $ 474 |
Business Combinations Net Asset
Business Combinations Net Assets Acquired (Details) - USD ($) $ in Millions | 9 Months Ended | ||
Oct. 01, 2022 | Mar. 31, 2024 | Mar. 31, 2023 | |
Net Assets Acquired from Business Combinations | |||
Payments to Acquire Businesses, Net of Cash Acquired | $ 0 | $ 474 | |
Payments to Acquire Businesses, Net of Cash Acquired | $ 0 | $ 474 | |
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 | 12 | ||
Business Combination, Consideration Transferred | 474 | ||
Goodwill, Acquired During Period | 219 | ||
Metrics | Customer Relationships [Member] | |||
Net Assets Acquired from Business Combinations | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $ 52 | ||
Weighted Average Life | 12 years |
Goodwill - Rollforward (Detail)
Goodwill - Rollforward (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Goodwill [Roll Forward] | ||||
Beginning balance | $ 3,039,000,000 | |||
Foreign currency translation adjustments | (13,000,000) | |||
Ending balance | $ 2,339,000,000 | $ 2,339,000,000 | ||
Goodwill Input, Discount Rate Minimum, Percentage | 10% | 1,050% | 10% | 1,050% |
Net revenue | $ 1,074,000,000 | $ 1,037,000,000 | $ 3,080,000,000 | $ 3,208,000,000 |
Goodwill Inputs Long Term Revenue Growth Rate, Percentage | 3.50% | 300% | 3.50% | 300% |
Goodwill Input, Discount Rate Minimum, Percentage | 10% | 1,050% | 10% | 1,050% |
Goodwill Input Discount Rate Minimum, Percentage | 9% | 900% | 9% | 900% |
Goodwill, Impairment Loss | $ 0 | $ (210,000,000) | $ (687,000,000) | $ (210,000,000) |
Goodwill, Impaired, Accumulated Impairment Loss | 897,000,000 | 897,000,000 | ||
Biologics | ||||
Goodwill [Roll Forward] | ||||
Beginning balance | 1,563,000,000 | |||
Foreign currency translation adjustments | (4,000,000) | |||
Ending balance | 1,167,000,000 | 1,167,000,000 | ||
Goodwill, Impairment Loss | (392,000,000) | |||
Biologics | Manufacturing & Commercial Product Supply | ||||
Goodwill [Roll Forward] | ||||
Net revenue | 261,000,000 | 133,000,000 | 821,000,000 | 304,000,000 |
Biologics | Development Services | ||||
Goodwill [Roll Forward] | ||||
Net revenue | 200,000,000 | 342,000,000 | 526,000,000 | 1,274,000,000 |
PharmaConsumerHealth | ||||
Goodwill [Roll Forward] | ||||
Beginning balance | 1,476,000,000 | |||
Foreign currency translation adjustments | (9,000,000) | |||
Ending balance | 1,172,000,000 | 1,172,000,000 | ||
Goodwill, Impairment Loss | (295,000,000) | (210,000,000) | (687,000,000) | (210,000,000) |
PharmaConsumerHealth | Manufacturing & Commercial Product Supply | ||||
Goodwill [Roll Forward] | ||||
Net revenue | 402,000,000 | 349,000,000 | 1,109,000,000 | 1,027,000,000 |
PharmaConsumerHealth | Development Services | ||||
Goodwill [Roll Forward] | ||||
Net revenue | 211,000,000 | 214,000,000 | 625,000,000 | 605,000,000 |
Total Catalent before inter-segment revenue elimination | Manufacturing & Commercial Product Supply | ||||
Goodwill [Roll Forward] | ||||
Net revenue | 663,000,000 | 482,000,000 | 1,930,000,000 | 1,331,000,000 |
Total Catalent before inter-segment revenue elimination | Development Services | ||||
Goodwill [Roll Forward] | ||||
Net revenue | $ 411,000,000 | $ 556,000,000 | $ 1,151,000,000 | $ 1,879,000,000 |
Other Intangibles, Net (Detail)
Other Intangibles, Net (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Intangible Assets Disclosure [Abstract] | ||||
Amortization expense | $ 34 | $ 34 | $ 101 | $ 101 |
Long-Term Obligations and Oth_3
Long-Term Obligations and Other Short-Term Borrowings - Long-Term Obligations, Presented Net of Issue Discounts and Fees Paid to Lenders, and Other Short-Term Borrowings (Detail) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2024 | Jun. 30, 2023 | ||
Schedule Of Debt [Line Items] | |||
Total long-term debt | $ 4,980 | $ 4,849 | |
Debt, Current | 47 | 536 | |
Long-term obligations, less current portion | 4,933 | 4,313 | |
Debt Instrument, Unused Borrowing Capacity, Amount | 1,100 | ||
Letters of Credit Outstanding, Amount | 4 | ||
Sale and Leaseback Transaction, Gain (Loss), Net | 15 | ||
Term loan facility B-3 U.S. dollar-denominated | |||
Schedule Of Debt [Line Items] | |||
Total long-term debt | 1,408 | 1,418 | |
Revolving Credit Facility - Two | |||
Schedule Of Debt [Line Items] | |||
Total long-term debt | 0 | 500 | |
Capital lease obligations | |||
Schedule Of Debt [Line Items] | |||
Total long-term debt | 392 | 341 | |
Other obligations | |||
Schedule Of Debt [Line Items] | |||
Total long-term debt | 34 | 25 | |
Term Loan Four Facility Dollar Denominated | |||
Schedule Of Debt [Line Items] | |||
Total long-term debt | $ 600 | ||
Debt Instrument, Interest Rate, Stated Percentage | 200% | ||
Estimate of Fair Value Measurement [Member] | |||
Schedule Of Debt [Line Items] | |||
Total long-term debt | $ 4,664 | 4,454 | |
Debt Instrument, Fair Value Disclosure | 4,664 | 4,454 | |
Estimate of Fair Value Measurement [Member] | Debt Issuance Costs | |||
Schedule Of Debt [Line Items] | |||
Total long-term debt | 0 | 0 | |
Carrying Value [Member] | |||
Schedule Of Debt [Line Items] | |||
Total long-term debt | 4,980 | 4,849 | |
Debt Instrument, Fair Value Disclosure | 5,027 | 4,888 | |
Carrying Value [Member] | Debt Issuance Costs | |||
Schedule Of Debt [Line Items] | |||
Total long-term debt | 47 | 39 | |
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 | 495 | 482 | |
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 | 849 | 784 | |
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 | 528 | 481 | |
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 | 631 | 566 | |
Fair Value, Inputs, Level 2 [Member] | Carrying Value [Member] | U.S Dollar-denominated 5.00% Senior Notes [Member] | |||
Schedule Of Debt [Line Items] | |||
Debt Instrument, Fair Value Disclosure | 500 | 500 | |
Fair Value, Inputs, Level 2 [Member] | Carrying Value [Member] | 2.375% Senior Euro Denominated Notes [Member] | |||
Schedule Of Debt [Line Items] | |||
Debt Instrument, Fair Value Disclosure | [1] | 893 | 904 |
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 | |
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 | |
[1]The change in the carrying value of this euro-denominated debt was due to fluctuations in foreign currency exchange rates. (2) The increase in other obligations is primarily associated with $15 million in proceeds from a failed sale-leaseback transaction that occurred in the three months ended September 30, 2023. |
Long-Term Obligations and Oth_4
Long-Term Obligations and Other Short-Term Borrowings Long-Term Obligations and Other Short-Term Borrowings (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Jun. 30, 2023 |
Debt Instrument [Line Items] | ||
Total long-term debt | $ 4,980 | $ 4,849 |
Term loan facility B-3 U.S. dollar-denominated | ||
Debt Instrument [Line Items] | ||
Total long-term debt | 1,408 | 1,418 |
Revolving Credit Facility - Two | ||
Debt Instrument [Line Items] | ||
Total long-term debt | 0 | $ 500 |
Term Loan Four Facility Dollar Denominated | ||
Debt Instrument [Line Items] | ||
Total long-term debt | $ 600 | |
Debt Instrument, Interest Rate, Stated Percentage | 200% | |
Stated Percentage, Quarterly Amortization of Principal | 100% | |
Term Loan Four Facility Dollar Denominated | Secured Overnight Financing Rate (SOFR) | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 300% | |
Term Loan Four Facility Dollar Denominated | Secured Overnight Financing Rate (SOFR) | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 50% | |
Deferred purchase consideration | ||
Debt Instrument [Line Items] | ||
Stated Percentage, Draw Outsanding | 3,000% |
Long-Term Obligations and Oth_5
Long-Term Obligations and Other Short-Term Borrowings Fair Value Measurements of Financial Instruments - Carrying Amounts and Estimated Fair Value of Financial Instruments (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Jun. 30, 2023 | |
Fair Value Measurements Of Financial Instruments [Line Items] | |||
Total long-term debt | $ 4,980 | $ 4,849 | |
Estimate of Fair Value Measurement [Member] | |||
Fair Value Measurements Of Financial Instruments [Line Items] | |||
Debt Instrument, Fair Value Disclosure | 4,664 | 4,454 | |
Total long-term debt | 4,664 | 4,454 | |
Carrying Value [Member] | |||
Fair Value Measurements Of Financial Instruments [Line Items] | |||
Debt Instrument, Fair Value Disclosure | 5,027 | 4,888 | |
Total long-term debt | 4,980 | 4,849 | |
Term loan facility B-3 U.S. dollar-denominated | |||
Fair Value Measurements Of Financial Instruments [Line Items] | |||
Total long-term debt | 1,408 | 1,418 | |
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 | 495 | 482 | |
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 | 849 | 784 | |
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] | 893 | 904 |
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 | 528 | 481 | |
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 | 2,161 | 2,141 | |
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 | $ 2,434 | $ 2,284 | |
[1]The change in the carrying value of this euro-denominated debt was due to fluctuations in foreign currency exchange rates. (2) The increase in other obligations is primarily associated with $15 million in proceeds from a failed sale-leaseback transaction that occurred in the three months ended September 30, 2023. |
Earnings Per Share Earnings Per
Earnings Per Share Earnings Per Share - Additional Details (Details) - $ / shares | Mar. 31, 2024 | Feb. 05, 2024 | Jun. 30, 2023 |
Earnings Per Share [Abstract] | |||
Common Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 | $ 0.01 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | Jun. 30, 2024 | |
Earnings Per Share [Abstract] | |||||
Net earnings/(loss) | $ (101) | $ (227) | $ (1,066) | $ (146) | $ (1,066) |
Weighted Average Number of Shares Outstanding, Basic | 182 | 181 | 181 | 180 | |
Dilutive securities issuable-stock plans | 0 | 0 | 0 | 0 | |
Total weighted average diluted shares outstanding | 182 | 181 | 181 | 180 | |
Earnings Per Share, Basic | $ (0.56) | $ (1.26) | $ (5.87) | $ (0.81) | |
Earnings Per Share, Diluted | $ (0.56) | $ (1.26) | $ (5.87) | $ (0.81) |
Other Income and Expense (Detai
Other Income and Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | ||
Other Income and Expenses [Abstract] | |||||
Foreign Currency (gains) and losses | [1] | $ 2 | $ (4) | $ 17 | $ (5) |
Other | [2] | 2 | 0 | 4 | 3 |
Other (income)/expense, net | [3] | $ 4 | $ (4) | $ 21 | $ (2) |
[1]Foreign currency remeasurement gains/losses include both cash and non-cash transactions.[2] |
Restructuring and Other Costs (
Restructuring and Other Costs (Details) | 3 Months Ended | 9 Months Ended | |||||
Mar. 31, 2024 USD ($) | Mar. 31, 2023 USD ($) | Mar. 31, 2022 USD ($) | Mar. 31, 2024 USD ($) employees | Mar. 31, 2023 USD ($) | Apr. 25, 2024 USD ($) | Jun. 30, 2023 USD ($) | |
Restructuring and Related Activities [Abstract] | |||||||
Severance Costs | $ 10,000,000 | $ 4,000,000 | $ 22,000,000 | $ 18,000,000 | |||
Business Exit Costs | 1,000,000 | 5,000,000 | $ 18,000,000 | 8,000,000 | |||
Restructuring and other | 11,000,000 | 9,000,000 | $ 30,000,000 | 36,000,000 | |||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring and Related Cost, Expected Cost | $ 25 | ||||||
Restructuring and Related Cost [Abstract] | |||||||
Restructuring and Related Cost, Number of Positions Eliminated | employees | 550 | ||||||
Restructuring and other | 11,000,000 | 9,000,000 | $ 30,000,000 | 36,000,000 | |||
Restructuring Reserve | 16,000,000 | 16,000,000 | $ 19,000,000 | ||||
Restructuring and Related Cost, Incurred Cost | 22,000,000 | ||||||
Payments for Restructuring | (25,000,000) | ||||||
Severance Costs | 10,000,000 | 4,000,000 | 22,000,000 | 18,000,000 | |||
Biologics | |||||||
Restructuring and Related Activities [Abstract] | |||||||
Restructuring and other | 3,000,000 | 7,000,000 | 10,000,000 | 25,000,000 | |||
Restructuring and Related Cost [Abstract] | |||||||
Restructuring and other | 3,000,000 | 7,000,000 | 10,000,000 | 25,000,000 | |||
PharmaConsumerHealth | |||||||
Restructuring and Related Activities [Abstract] | |||||||
Restructuring and other | 2,000,000 | 1,000,000 | 13,000,000 | 5,000,000 | |||
Restructuring and Related Cost [Abstract] | |||||||
Restructuring and other | 2,000,000 | 1,000,000 | 13,000,000 | 5,000,000 | |||
Corporate and Eliminations [Member] | |||||||
Restructuring and Related Activities [Abstract] | |||||||
Restructuring and other | 6,000,000 | 1,000,000 | 7,000,000 | 6,000,000 | |||
Restructuring and Related Cost [Abstract] | |||||||
Restructuring and other | $ 6,000,000 | $ 1,000,000 | $ 7,000,000 | $ 6,000,000 |
Restructuring and Other Costs I
Restructuring and Other Costs Individual Site (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | Apr. 25, 2024 | |
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and Related Cost, Expected Cost | $ 25 | ||||
Restructuring and other | $ 11,000,000 | $ 9,000,000 | $ 30,000,000 | $ 36,000,000 |
Derivative Instruments and He_3
Derivative Instruments and Hedging Activities - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | Jun. 30, 2023 | Feb. 28, 2021 | |
Derivative [Line Items] | ||||||
Total long-term debt | $ 4,980 | $ 4,980 | $ 4,849 | |||
Unrealized foreign exchange gain/(loss) within other comprehensive income | 17 | $ (16) | 11 | $ (20) | ||
Net accumulated gain related to investment hedges | 108 | |||||
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), after Reclassification, before Tax | 5 | |||||
Interest Rate Cash Flow Hedge Liability at Fair Value | 62 | |||||
Carrying Value [Member] | ||||||
Derivative [Line Items] | ||||||
Total long-term debt | 4,980 | 4,980 | 4,849 | |||
Debt Instrument, Fair Value Disclosure | 5,027 | 5,027 | $ 4,888 | |||
Euro Denominated Debt Outstanding [Member] | ||||||
Derivative [Line Items] | ||||||
Total long-term debt | 893 | 893 | ||||
U.S. Denominated Term Loan [Member] | ||||||
Derivative [Line Items] | ||||||
Total Debt, U.S Denominated Term Loan | 500 | 500 | ||||
Debt Instrument, Interest Rate, Effective Percentage | 0.9431% | 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 | Mar. 31, 2024 | Jun. 30, 2023 |
Fair Value Disclosures [Abstract] | ||
Trading Securities at Fair Value | $ 1 | $ 1 |
Interest Rate Cash Flow Hedge Asset at Fair Value | 67 | 62 |
Interest Rate Cash Flow Hedge Liability at Fair Value | 62 | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Trading Securities at Fair Value | 1 | 1 |
Interest Rate Cash Flow Hedge Asset at Fair Value | 67 | 62 |
Interest Rate Cash Flow Hedge Liability at Fair Value | 62 | |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value Disclosures [Abstract] | ||
Trading Securities at Fair Value | 1 | 1 |
Interest Rate Cash Flow Hedge Asset at Fair Value | 0 | 0 |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Trading Securities at Fair Value | 1 | 1 |
Interest Rate Cash Flow Hedge Asset at Fair Value | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value Disclosures [Abstract] | ||
Trading Securities at Fair Value | 0 | 0 |
Interest Rate Cash Flow Hedge Asset at Fair Value | 67 | 62 |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Trading Securities at Fair Value | 0 | 0 |
Interest Rate Cash Flow Hedge Asset at Fair Value | 67 | 62 |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value Disclosures [Abstract] | ||
Trading Securities at Fair Value | 0 | 0 |
Interest Rate Cash Flow Hedge Asset at Fair Value | 0 | 0 |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Trading Securities at Fair Value | 0 | 0 |
Interest Rate Cash Flow Hedge Asset at Fair Value | $ 0 | $ 0 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | Jun. 30, 2023 | |
Income Tax Disclosure [Abstract] | |||||
Unrecognized Tax Benefits, Including Income Tax Penalties and Interest Accrued | $ 3 | $ 3 | $ 4 | ||
Income tax expense(benefit) | 15 | $ (55) | 1 | $ (19) | |
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | $ 86 | $ 282 | $ 1,065 | $ 165 |
Employee Retirement Benefit P_3
Employee Retirement Benefit Plans - Components of Company's Net Periodic Benefit Costs (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | ||||
Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | Jun. 30, 2023 | |
Components of net periodic benefit cost: | ||||||
Service cost | $ 1,000,000 | $ 1,000,000 | $ 3,000,000 | $ 3,000,000 | ||
Interest cost | 3,000,000 | 3,000,000 | 8,000,000 | 7,000,000 | ||
Expected return on plan assets | (2,000,000) | (2,000,000) | (6,000,000) | (6,000,000) | ||
Amortization | 0 | 0 | 1,000,000 | 0 | ||
Net amount recognized | 11,000,000 | 2,000,000 | 18,000,000 | 4,000,000 | ||
Estimated discounted value of future employer contributions | 44,000,000 | 44,000,000 | $ 38,000,000 | |||
Estimated annual cash contribution | 2,000,000 | $ 2,000,000 | 2,000,000 | $ 2,000,000 | ||
Defined Benefit Plan, Plan Assets, Payment for Settlement | 24 | $ 7 | ||||
Debtor Reorganization Items, Pension and Other Postretirement Related Charges | 9,000,000 | $ 12,000,000 | ||||
Pension Settlement Charges | 9,000,000 | |||||
Defined Benefit Plan, Benefit Obligation, Payment for Settlement | $ 3 |
Equity and Accumulated Other _3
Equity and Accumulated Other Comprehensive Income (Loss) - Equity (Details) - $ / shares | Mar. 31, 2024 | Jun. 30, 2023 |
Equity [Abstract] | ||
Common Stock, Shares Authorized | 1,000,000,000 | 1,000,000,000 |
Preferred Stock, Shares Authorized | 100,000,000 | 100,000,000 |
Preferred Stock, Shares Outstanding | 0 | 0 |
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 |
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, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Foreign currency translation adjustments: | ||||
Net investment hedge | $ 17 | $ (16) | $ 11 | $ (20) |
Long-term intercompany loans | 0 | 9 | (2) | (1) |
Translation adjustments | (36) | 31 | (28) | 26 |
Total foreign currency translation adjustment, pretax | (19) | 24 | (19) | 5 |
Tax expense/(benefit) | (5) | (3) | (3) | (5) |
Total foreign currency translation adjustment, net of tax | (14) | 27 | (16) | 10 |
Net change in derivatives and hedges | ||||
Net loss recognized during the period | 8 | (3) | 6 | 15 |
Total derivatives and hedges, pretax | 8 | (3) | 6 | 15 |
Tax expense/(benefit) | 3 | (1) | 3 | 3 |
Net change in derivatives and hedges, net of tax | 5 | (2) | 3 | 12 |
Net change in minimum pension liability | ||||
Net gain/(loss) recognized during the period | 9 | 0 | 12 | 0 |
Total pension liability, pretax | 9 | 0 | 12 | 0 |
Tax expense/(benefit) | 2 | 0 | 1 | 0 |
Pension and other post-retirement adjustments | 7 | 0 | 11 | 0 |
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 | 0 | 0 | 1 |
Total available for sale investment, pretax | 0 | 2 | 0 | 5 |
Tax expense/(benefit) | 0 | 0 | 1 | |
Available for sale investments | 0 | 2 | 0 | 4 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Other comprehensive income/(loss) before reclassifications | $ (9) | $ 25 | $ (13) | $ 22 |
Equity and Accumulated Other _5
Equity and Accumulated Other Comprehensive Income (Loss) - Rollforward (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | Jun. 30, 2024 | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||||
Beginning Balance | $ (354) | $ (395) | $ (354) | $ (394) | $ (354) |
Other comprehensive income/(loss) before reclassifications | (9) | 25 | (13) | 22 | |
Amounts reclassified from accumulated other comprehensive income/(loss) | 7 | (2) | (11) | (4) | |
Total foreign currency translation adjustment, net of tax | (14) | 27 | (16) | 10 | |
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, after Tax | 7 | 0 | 11 | 0 | |
Net change in derivatives and hedges, net of tax | 5 | (2) | 3 | 12 | |
Other Comprehensive Income, Other, Net of Tax | (2) | 27 | (2) | 26 | |
Available for sale investments | 0 | 2 | 0 | 4 | |
Other comprehensive income/(loss), net of tax | (2) | 27 | (2) | 26 | (2) |
Ending Balance | (356) | (368) | (356) | (368) | |
Accumulated Translation Adjustment [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||||
Beginning Balance | (348) | (395) | (346) | (378) | (346) |
Other comprehensive income/(loss) before reclassifications | (14) | 27 | (16) | 10 | |
Amounts reclassified from accumulated other comprehensive income/(loss) | 0 | ||||
Total foreign currency translation adjustment, net of tax | 27 | ||||
Ending Balance | (362) | (368) | (362) | (368) | |
Accumulated Defined Benefit Plans Adjustment [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||||
Beginning Balance | (48) | (38) | (52) | (38) | (52) |
Other comprehensive income/(loss) before reclassifications | 0 | ||||
Amounts reclassified from accumulated other comprehensive income/(loss) | 7 | 0 | |||
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, after Tax | 7 | 0 | (11) | ||
Ending Balance | (41) | (38) | (41) | (38) | |
AOCI, Derivative Qualifying as Hedge, Parent [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||||
Beginning Balance | 43 | 41 | 45 | 27 | 45 |
Other comprehensive income/(loss) before reclassifications | 5 | (2) | 12 | ||
Amounts reclassified from accumulated other comprehensive income/(loss) | 0 | ||||
Net change in derivatives and hedges, net of tax | (2) | ||||
Ending Balance | 48 | 39 | 48 | 39 | |
ACOI, Accumulated Gain (Loss), Marketable Securities [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||||
Beginning Balance | (2) | (4) | |||
Other comprehensive income/(loss) before reclassifications | 0 | ||||
Amounts reclassified from accumulated other comprehensive income/(loss) | 0 | 2 | 0 | 4 | |
Net change in derivatives and hedges, net of tax | 5 | ||||
Available for sale investments | 2 | 0 | 4 | ||
Ending Balance | 0 | 0 | |||
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) |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2024 | Feb. 05, 2024 | Jun. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Estimated Fire Damage Loss | $ 9 | ||
Business Combination, Termination Fee | $ 345 | ||
Common Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 | $ 0.01 |
Segment Information - Net Reven
Segment Information - Net Revenue and Segment Ebitda (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | ||
Segment Reporting, Revenue & EBITDA Reconciling Item [Line Items] | |||||
Net revenue | $ 1,074 | $ 1,037 | $ 3,080 | $ 3,208 | |
Segment Reporting Information Unallocated Expense | [1] | (97) | (256) | (1,033) | (394) |
Biologics | |||||
Segment Reporting, Revenue & EBITDA Reconciling Item [Line Items] | |||||
Segment EBITDA | 49 | 6 | 136 | 299 | |
PharmaConsumerHealth | |||||
Segment Reporting, Revenue & EBITDA Reconciling Item [Line Items] | |||||
Segment EBITDA | 153 | 125 | 380 | 368 | |
Total Catalent sub-total of Segment Reporting [Member] | |||||
Segment Reporting, Revenue & EBITDA Reconciling Item [Line Items] | |||||
Segment EBITDA | $ 202 | $ 131 | $ 516 | $ 667 | |
[1]Unallocated costs include restructuring and special items, stock-based compensation, impairment charges, certain other corporate directed costs, and other costs that are not allocated to the segments as follows: |
Segment Information, EBITDA, Re
Segment Information, EBITDA, Reconciling Items (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | ||
Unallocated costs [Abstract] | |||||
Impairment Charges And Gain Loss On Sale Of Assets | $ 13 | $ 6 | $ 27 | $ 4 | |
Stock-based compensation | 17 | 6 | 52 | 35 | |
Restructuring And Other Special Items | [1] | 20 | 17 | 126 | 59 |
Debtor Reorganization Items, Pension and Other Postretirement Related Charges | (9) | (12) | |||
Other (income)/expense, net | [2] | (4) | 4 | (21) | 2 |
Non Allocated Corporate Costs Net | 34 | 21 | 108 | 88 | |
Segment Reporting Information Unallocated Expense | [3] | 97 | 256 | 1,033 | 394 |
Goodwill, Impairment Loss | $ 0 | $ 210 | $ 687 | $ 210 | |
[1]Restructuring and other special items during the three and nine months ended March 31, 2024 include restructuring charges associated with plans to reduce costs, consolidate facilities, and optimize our infrastructure across the organization. For further details on restructuring charges, see Note 8, Restructuring Costs to the Consolidated Financial Statements. 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 8, Restructuring Costs to the Consolidated Financial Statements. (c) Goodwill impairment charges during the nine months ended March 31, 2024 were associated with the Company's Consumer Health and Biomodalities reporting units, which are part of the Company's Pharma and Consumer Health and Biologics segments, respectively. For further details, see Note 4, Goodwill to the Consolidated Financial Statements. 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 4, 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 | |||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | ||
Segment Reporting [Abstract] | |||||
Segment Reporting Information Unallocated Expense | [1] | $ 97 | $ 256 | $ 1,033 | $ 394 |
Depreciation and amortization | 126 | 106 | 359 | 308 | |
Interest expense, net | 65 | 51 | 189 | 130 | |
Income tax expense(benefit) | 15 | (55) | 1 | (19) | |
Earnings/(loss) from continuing operations | $ (101) | $ (227) | $ (1,066) | $ (146) | |
[1]Unallocated costs include restructuring and special items, stock-based compensation, impairment charges, certain other corporate directed costs, and other costs that are not allocated to the segments as follows: |
Segment Information - Total Ass
Segment Information - Total Assets for Each Segment and Reconciling in Consolidated Financial Statements (Detail) - USD ($) $ in Millions | Jun. 30, 2024 | Mar. 31, 2024 | Jun. 30, 2023 |
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Total assets | $ 10,508 | $ 9,879 | $ 10,777 |
Biologics | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Total assets | 5,263 | 5,746 | |
PharmaConsumerHealth | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Total assets | 4,588 | 4,867 | |
Corporate and Eliminations [Member] | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Total assets | $ 28 | $ 164 |
Segment Information - Major Cus
Segment Information - Major Customers (Details) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Segment Reporting [Abstract] | ||||
Segment Reporting, Disclosure of Major Customers | 14 | 11 | 16 | 10 |
Supplemental Balance Sheet In_3
Supplemental Balance Sheet Information - Inventory (Detail) - USD ($) $ in Millions | Mar. 31, 2024 | Jun. 30, 2023 |
Inventory, Net [Abstract] | ||
Raw materials and supplies | $ 747 | $ 781 |
Work-in-process | 211 | 186 |
Total inventories, gross | 958 | 967 |
Inventory cost adjustment | (216) | (190) |
Inventories | $ 742 | $ 777 |
Supplemental Balance Sheet In_4
Supplemental Balance Sheet Information - Prepaid and Other Assets (Detail) - USD ($) $ in Millions | Jun. 30, 2024 | Mar. 31, 2024 | Jun. 30, 2023 |
Prepaid Expense and Other Assets, Current [Abstract] | |||
Prepaid expenses | $ 55 | $ 53 | |
Contract with Customer, Asset, Net, Current | 472 | 399 | |
Spare parts supplies | 28 | 24 | |
Prepaid income tax | 84 | 77 | |
Non-U.S. value added tax | 59 | 38 | |
Other current assets | 46 | 42 | |
Prepaid expenses and other | $ 626 | $ 744 | $ 633 |
Supplemental Balance Sheet In_5
Supplemental Balance Sheet Information - Other Accrued Liabilities (Detail) - USD ($) $ in Millions | Mar. 31, 2024 | Jun. 30, 2023 |
Balance Sheet Related Disclosures [Abstract] | ||
Accrued employee-related expenses | $ 146 | $ 160 |
Accrued Operating Lease, Liabilities | 10 | 11 |
Restructuring accrual | 16 | 19 |
Accrued interest | 28 | 35 |
Contract liability | 249 | 167 |
Accrued income tax | 14 | 44 |
Other accrued liabilities and expenses | 120 | 134 |
Other accrued liabilities | $ 583 | $ 570 |
Allowance for Credit Loss (Deta
Allowance for Credit Loss (Details) - USD ($) $ in Millions | 9 Months Ended | |
Mar. 31, 2024 | Jun. 30, 2023 | |
Text Block [Abstract] | ||
Accounts Receivable, Allowance for Credit Loss | $ 32 | $ 46 |
Accounts Receivable, Credit Loss Expense (Reversal) | (6) | |
Accounts Receivable, Allowance for Credit Loss, Writeoff | $ (8) |
Subsequent Events (Details)
Subsequent Events (Details) | 3 Months Ended | 9 Months Ended | |||||||||
Mar. 31, 2024 USD ($) $ / shares | Mar. 31, 2023 USD ($) | Mar. 31, 2024 USD ($) $ / shares | Mar. 31, 2023 USD ($) | Jun. 30, 2024 USD ($) | Apr. 25, 2024 USD ($) | Feb. 05, 2024 USD ($) $ / shares | Dec. 31, 2023 USD ($) | Jun. 30, 2023 USD ($) $ / shares | Dec. 31, 2022 USD ($) | Jun. 30, 2022 USD ($) | |
Subsequent Event | |||||||||||
Unrecognized Tax Benefits, Including Income Tax Penalties and Interest Accrued | $ 3,000,000 | $ 3,000,000 | $ 4,000,000 | ||||||||
Assets | 9,879,000,000 | 9,879,000,000 | $ 10,508,000,000 | 10,777,000,000 | |||||||
Other comprehensive income/(loss) before reclassifications | (9,000,000) | $ 25,000,000 | (13,000,000) | $ 22,000,000 | |||||||
Foreign currency translation adjustments | (14,000,000) | 27,000,000 | (16,000,000) | 10,000,000 | |||||||
Net change in derivatives and hedges, net of tax | 5,000,000 | (2,000,000) | 3,000,000 | 12,000,000 | |||||||
Available for sale investments | 0 | 2,000,000 | 0 | 4,000,000 | |||||||
Other Comprehensive Income, Other, Net of Tax | (2,000,000) | 27,000,000 | (2,000,000) | 26,000,000 | |||||||
Accumulated other comprehensive income/(loss) | (356,000,000) | (368,000,000) | (356,000,000) | (368,000,000) | $ (354,000,000) | $ (354,000,000) | $ (395,000,000) | $ (394,000,000) | |||
Amounts reclassified from accumulated other comprehensive income/(loss) | 7,000,000 | (2,000,000) | (11,000,000) | (4,000,000) | |||||||
Pension and other post-retirement adjustments | $ 7,000,000 | 0 | 11,000,000 | 0 | |||||||
Tax expense/(benefit) | 0 | $ 0 | 1,000,000 | ||||||||
Restructuring and Related Cost, Expected Cost | $ 25 | ||||||||||
Common Stock, Par or Stated Value Per Share | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | |||||||
Business Combination, Termination Fee | $ 345 | ||||||||||
Merger Agreement | |||||||||||
Subsequent Event | |||||||||||
Business Combination, Purchase Price per Share | $ / shares | $ 63.5 | ||||||||||
Business Combination, Enterprise Value | 16,500,000,000 | ||||||||||
Accumulated Translation Adjustment [Member] | |||||||||||
Subsequent Event | |||||||||||
Other comprehensive income/(loss) before reclassifications | $ (14,000,000) | 27,000,000 | $ (16,000,000) | 10,000,000 | |||||||
Foreign currency translation adjustments | 27,000,000 | ||||||||||
Accumulated other comprehensive income/(loss) | (362,000,000) | (368,000,000) | (362,000,000) | (368,000,000) | (348,000,000) | $ (346,000,000) | (395,000,000) | (378,000,000) | |||
Amounts reclassified from accumulated other comprehensive income/(loss) | 0 | ||||||||||
AOCI, Derivative Qualifying as Hedge, Parent [Member] | |||||||||||
Subsequent Event | |||||||||||
Other comprehensive income/(loss) before reclassifications | 5,000,000 | (2,000,000) | 12,000,000 | ||||||||
Net change in derivatives and hedges, net of tax | (2,000,000) | ||||||||||
Accumulated other comprehensive income/(loss) | 48,000,000 | 39,000,000 | 48,000,000 | 39,000,000 | 43,000,000 | 45,000,000 | 41,000,000 | 27,000,000 | |||
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 | ||||||||||
Net change in derivatives and hedges, net of tax | 5,000,000 | ||||||||||
Available for sale investments | 2,000,000 | 0 | 4,000,000 | ||||||||
Accumulated other comprehensive income/(loss) | 0 | 0 | (2,000,000) | (4,000,000) | |||||||
Amounts reclassified from accumulated other comprehensive income/(loss) | 0 | 2,000,000 | 0 | 4,000,000 | |||||||
Accumulated Defined Benefit Plans Adjustment [Member] | |||||||||||
Subsequent Event | |||||||||||
Other comprehensive income/(loss) before reclassifications | 0 | ||||||||||
Accumulated other comprehensive income/(loss) | (41,000,000) | (38,000,000) | (41,000,000) | (38,000,000) | (48,000,000) | (52,000,000) | (38,000,000) | $ (38,000,000) | |||
Amounts reclassified from accumulated other comprehensive income/(loss) | 7,000,000 | 0 | |||||||||
Pension and other post-retirement adjustments | 7,000,000 | 0 | (11,000,000) | ||||||||
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) | (1,000,000) | (1,000,000) | (1,000,000) | (1,000,000) | $ (1,000,000) | (1,000,000) | $ (1,000,000) | ||||
Amounts reclassified from accumulated other comprehensive income/(loss) | 0 | ||||||||||
PharmaConsumerHealth | |||||||||||
Subsequent Event | |||||||||||
Segment EBITDA | 153,000,000 | $ 125,000,000 | 380,000,000 | $ 368,000,000 | |||||||
Assets | $ 4,588,000,000 | $ 4,588,000,000 | $ 4,867,000,000 |
Uncategorized Items - ctlt-2024
Label | Element | Value |
APIC, Share-Based Payment Arrangement, Option, Increase for Cost Recognition | us-gaap_AdjustmentsToAdditionalPaidInCapitalShareBasedCompensationStockOptionsRequisiteServicePeriodRecognition | $ 9,000,000 |
APIC, Share-Based Payment Arrangement, Increase for Cost Recognition | us-gaap_AdjustmentsToAdditionalPaidInCapitalSharebasedCompensationRequisiteServicePeriodRecognitionValue | 52,000,000 |
Pension and Other Postretirement Benefits Expense (Reversal of Expense), Noncash | us-gaap_PensionAndOtherPostretirementBenefitsExpenseReversalOfExpenseNoncash | 12,000,000 |
Retained Earnings [Member] | ||
Net Income (Loss) | us-gaap_NetIncomeLoss | $ (1,066,000,000) |
Common Stock [Member] | ||
Shares Issued, Shares, Share-Based Payment Arrangement, after Forfeiture | us-gaap_StockIssuedDuringPeriodSharesShareBasedCompensation | 641,000,000 |
AOCI Attributable to Parent [Member] | ||
Other Comprehensive Income (Loss), Net of Tax | us-gaap_OtherComprehensiveIncomeLossNetOfTax | $ (2,000,000) |
Additional Paid-in Capital [Member] | ||
APIC, Share-Based Payment Arrangement, Option, Increase for Cost Recognition | us-gaap_AdjustmentsToAdditionalPaidInCapitalShareBasedCompensationStockOptionsRequisiteServicePeriodRecognition | 7,000,000 |
Proceeds from Tax Withholding Obligations | ctlt_ProceedsFromTaxWithholdingObligations | (9,000,000) |
APIC, Share-Based Payment Arrangement, Increase for Cost Recognition | us-gaap_AdjustmentsToAdditionalPaidInCapitalSharebasedCompensationRequisiteServicePeriodRecognitionValue | $ 52,000,000 |