Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Jun. 30, 2024 | Aug. 22, 2024 | Dec. 31, 2021 | |
Document Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Document Fiscal Year Focus | 2024 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Document Period End Date | Jun. 30, 2024 | ||
Entity File Number | 001-36587 | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 20-8737688 | ||
Entity Address, Address Line One | 14 Schoolhouse Road | ||
Entity Address, City or Town | Somerset, | ||
Entity Address, State or Province | NJ | ||
Entity Address, Postal Zip Code | 08873 | ||
City Area Code | (732) | ||
Local Phone Number | 537-6200 | ||
Trading Symbol | CTLT | ||
Entity Registrant Name | CATALENT, INC. | ||
Entity Central Index Key | 0001596783 | ||
Current Fiscal Year End Date | --06-30 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | false | ||
Entity Shell Company | false | ||
Entity Common Stock, Shares Outstanding (shares) | 181,463,702 | ||
Entity Interactive Data Current | Yes | ||
Security Exchange Name | NYSE | ||
Title of 12(b) Security | Common Stock, $0.01 par value per share | ||
ICFR Auditor Attestation Flag | true | ||
Entity Public Float | $ 8,100,000,000 |
Audit Information
Audit Information | 12 Months Ended |
Jun. 30, 2024 | |
Auditor [Line Items] | |
Auditor Name | Grant Thornton LLP |
Auditor Location | New York, New York |
Auditor Firm ID | 248 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) | 12 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2022 | |
Income Statement [Abstract] | |||
Net revenue | $ 4,381,000,000 | $ 4,263,000,000 | $ 4,802,000,000 |
Cost of sales | 3,428,000,000 | 3,223,000,000 | 3,188,000,000 |
Gross margin | 953,000,000 | 1,040,000,000 | 1,614,000,000 |
Selling, general, and administrative expenses | 935,000,000 | 829,000,000 | 844,000,000 |
Disposal Group, Not Discontinued Operation, Gain (Loss) on Disposal | 0 | 0 | (1,000,000) |
Other Cost and Expense, Operating | 80,000,000 | 164,000,000 | 41,000,000 |
Operating earnings | (749,000,000) | (163,000,000) | 730,000,000 |
Interest expense, net | 254,000,000 | 186,000,000 | 123,000,000 |
Other (Income)/expense, net | 24,000,000 | 7,000,000 | 28,000,000 |
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | (1,027,000,000) | (342,000,000) | 579,000,000 |
Income tax expense | 16,000,000 | (86,000,000) | 80,000,000 |
Net earnings attributable to Catalent | (1,043,000,000) | (256,000,000) | 499,000,000 |
Participating Securities, Distributed and Undistributed (Earnings) Loss, Basic | 0 | 0 | (16,000,000) |
Net Income (Loss) Available to Common Stockholders, Basic | $ (1,043,000,000) | $ (256,000,000) | $ 483,000,000 |
Earnings Per Share, Basic | $ (5.76) | $ (1.42) | $ 2.74 |
Earnings Per Share, Diluted | $ (5.76) | $ (1.42) | $ 2.73 |
Goodwill, Impairment Loss | $ 687,000,000 | $ 210,000,000 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income / (Loss) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2022 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||
Net earnings | $ (1,043) | $ (256) | $ 499 |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | (32) | 32 | (110) |
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, after Tax | (14) | 9 | |
Other Comprehensive Income (Loss), Securities, Available-for-sale, Adjustment, after Tax | 4 | (3) | |
Other Comprehensive Income, Debt Securities, Derivative and Hedge, Gain (Loss), after Adjustment and Tax | 22 | 18 | 27 |
Other comprehensive income /(loss), net of tax | (50) | 40 | (77) |
Comprehensive income/(loss) | (1,093) | (216) | 422 |
ACOI, Accumulated Gain (Loss), Marketable Securities | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||
Other Comprehensive Income (Loss), Securities, Available-for-sale, Adjustment, after Tax | 0 | $ 4 | $ (3) |
Accumulated Defined Benefit Plans Adjustment [Member] | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, after Tax | $ 4 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Jun. 30, 2024 | Jun. 30, 2023 |
Current assets: | ||
Cash and cash equivalents | $ 289,000,000 | $ 280,000,000 |
Trade receivables, net | 921,000,000 | 1,002,000,000 |
Inventories | 574,000,000 | 777,000,000 |
Prepaid Expense and Other Assets, Current | 813,000,000 | 633,000,000 |
Total current assets | 2,597,000,000 | 2,692,000,000 |
Property, plant, and equipment, net | 3,643,000,000 | 3,682,000,000 |
Other assets: | ||
Goodwill | 2,333,000,000 | 3,039,000,000 |
Other intangibles, net | 841,000,000 | 980,000,000 |
Deferred Income Tax Assets, Net | 7,000,000 | 55,000,000 |
Other Assets, Noncurrent | 332,000,000 | 329,000,000 |
Total assets | 9,753,000,000 | 10,777,000,000 |
Current liabilities: | ||
Debt, Current | 48,000,000 | 536,000,000 |
Accounts payable | 361,000,000 | 424,000,000 |
Other accrued liabilities | 622,000,000 | 570,000,000 |
Total current liabilities | 1,031,000,000 | 1,530,000,000 |
Long-term Debt and Finance Lease Obligations | 4,857,000,000 | 4,313,000,000 |
Pension liability | 95,000,000 | 100,000,000 |
Deferred Income Tax Liabilities, Net | 5,000,000 | 76,000,000 |
Other liabilities | 161,000,000 | 147,000,000 |
Total liabilities | 6,149,000,000 | 6,166,000,000 |
Redeemable Preferred Stock Outstandings | $ 0 | $ 0 |
Common Stock, Shares Authorized | 1,000,000,000 | 1,000,000,000 |
Common Stock, Value, Outstanding | $ 2,000,000 | $ 2,000,000 |
Preferred Stock, Value, Outstanding | 0 | 0 |
Additional paid in capital | 4,787,000,000 | 4,701,000,000 |
Accumulated deficit | (781,000,000) | 262,000,000 |
Accumulated Other Comprehensive Income (Loss), Net of Tax | (404,000,000) | (354,000,000) |
Total shareholders’ equity | 3,604,000,000 | 4,611,000,000 |
Total liabilities, redeemable preferred stock, and shareholders’ equity | $ 9,753,000,000 | $ 10,777,000,000 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) | Jun. 30, 2024 | Jun. 30, 2023 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (usd per share) | $ 0.01 | $ 0.01 |
Common Stock, Shares Authorized | 1,000,000,000 | 1,000,000,000 |
Common stock, shares issued (shares) | 181,000,000 | 180,000,000 |
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 & Outstanding | 0 | 0 |
Temporary Equity, Par or Stated Value Per Share | $ 0.01 | |
Temporary Equity, Shares Authorized | 0 | |
Temporary Equity, Shares Issued | 0 | |
Preferred Stock, Shares Issued | 0 | 0 |
Accounts Receivable, Allowance for Credit Loss, Current | $ 23,000,000 | $ 46,000,000 |
Temporary Equity, Shares Outstanding | 0 |
Consolidated Statement of Chang
Consolidated Statement of Changes in Shareholder's Equity - USD ($) | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit | Accumulated Other Comprehensive (Loss)/Income [Member] |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Redeemable Preferred Stock Outstandings | $ 359,000,000 | ||||
Common Stock, Shares, Outstanding | 170,549,000 | ||||
Beginning Balance at Jun. 30, 2021 | 3,915,000,000 | $ 2,000,000 | $ 4,205,000,000 | $ 25,000,000 | $ (317,000,000) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 935,000 | ||||
Stock Issued During Period, Value, Stock Options Exercised | 0 | $ 0 | |||
Stock Issued During Period, Value, Conversion of Convertible Securities | 362,000,000 | 362,000,000 | |||
Equity compensation | 54,000,000 | 54,000,000 | |||
Payments Related to Tax Withholding for Share-based Compensation | (10,000,000) | (10,000,000) | |||
APIC, Share-based Payment Arrangement, Option, Increase for Cost Recognition | 26,000,000 | 26,000,000 | |||
APIC, Share-based Payment Arrangement, ESPP, Increase for Cost Recognition | 12,000,000 | 12,000,000 | |||
Dividends, Preferred Stock | (6,000,000) | (6,000,000) | |||
Net Income (Loss) Attributable to Parent | 499,000,000 | 499,000,000 | |||
Other comprehensive income /(loss), net of tax | (77,000,000) | (77,000,000) | |||
Ending Balance at Jun. 30, 2022 | 4,775,000,000 | $ 2,000,000 | 4,649,000,000 | 518,000,000 | (394,000,000) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Temporary Equity, Carrying Amount, Period Increase (Decrease) | (359,000,000) | ||||
Stock Issued During Period, Shares, Conversion of Convertible Securities | 7,818,000 | ||||
Redeemable Preferred Stock Outstandings | 0 | ||||
Common Stock, Shares, Outstanding | 179,302,000 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 971,000 | ||||
Stock Issued During Period, Value, Stock Options Exercised | 0 | ||||
Equity compensation | 35,000,000 | 35,000,000 | |||
Payments Related to Tax Withholding for Share-based Compensation | 0 | ||||
APIC, Share-based Payment Arrangement, Option, Increase for Cost Recognition | 4,000,000 | ||||
Equity issued in lieu of cash consideration | (13,000,000) | ||||
APIC, Share-based Payment Arrangement, ESPP, Increase for Cost Recognition | 13,000,000 | ||||
Net Income (Loss) Attributable to Parent | (256,000,000) | (256,000,000) | |||
Other comprehensive income /(loss), net of tax | 40,000,000 | 40,000,000 | |||
Ending Balance at Jun. 30, 2023 | 4,611,000,000 | $ 2,000,000 | 4,701,000,000 | 262,000,000 | (354,000,000) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Other Comprehensive Income, Other, Net of Tax | 40,000,000 | ||||
Proceeds from Tax Withholding Obligations | 4,000,000 | ||||
Redeemable Preferred Stock Outstandings | 0 | ||||
Common Stock, Shares, Outstanding | 180,273,000 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 725,000 | ||||
Equity compensation | 68,000,000 | 68,000,000 | |||
Payments Related to Tax Withholding for Share-based Compensation | 0 | ||||
APIC, Share-based Payment Arrangement, Option, Increase for Cost Recognition | 9,000,000 | ||||
Equity issued in lieu of cash consideration | (9,000,000) | ||||
APIC, Share-based Payment Arrangement, ESPP, Increase for Cost Recognition | 9,000,000 | ||||
Net Income (Loss) Attributable to Parent | (1,043,000,000) | (1,043,000,000) | |||
Other comprehensive income /(loss), net of tax | (50,000,000) | (50,000,000) | |||
Ending Balance at Jun. 30, 2024 | 3,604,000,000 | $ 2,000,000 | 4,787,000,000 | $ (781,000,000) | $ (404,000,000) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Other Comprehensive Income, Other, Net of Tax | (50,000,000) | ||||
Proceeds from Tax Withholding Obligations | $ 9,000,000 | ||||
Redeemable Preferred Stock Outstandings | $ 0 | ||||
Common Stock, Shares, Outstanding | 180,998,000 |
Consolidated Statement of Cha_2
Consolidated Statement of Changes in Shareholder's Equity - Shares of Common Stock | Common Stock [Member] shares |
Beginning Balance - Common Stock Outstanding (shares) at Jun. 30, 2021 | 170,549,000 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 935,000 |
Stock Issued During Period, Shares, Conversion of Convertible Securities | 7,818,000 |
Ending Balance - Common Stock Outstanding (shares) at Jun. 30, 2022 | 179,302,000 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 971,000 |
Ending Balance - Common Stock Outstanding (shares) at Jun. 30, 2023 | 180,273,000 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 725,000 |
Ending Balance - Common Stock Outstanding (shares) at Jun. 30, 2024 | 180,998,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||
Proceeds from Sale and Maturity of Marketable Securities | $ 0 | |||
Payments to Acquire Debt Securities, Available-for-sale | $ 89,000,000 | $ 20,000,000 | ||
Proceeds from sale of property and equipment | 1,000,000 | 8,000,000 | 0 | |
Settlement on from sale of subsidiaries | 0 | |||
Proceeds from Divestiture of Interest in Consolidated Subsidiaries | 0 | (3,000,000) | ||
Payment for acquisitions, net of cash acquired | 0 | (474,000,000) | (1,199,000,000) | |
Payments to Acquire Investments | 1,000,000 | 2,000,000 | 2,000,000 | |
Segment, Expenditure, Addition to Long-Lived Assets | (327,000,000) | (576,000,000) | (660,000,000) | |
Net cash (used in) investing activities | (327,000,000) | (955,000,000) | (1,884,000,000) | |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||
Proceeds from borrowing, net | 1,200,000,000 | 715,000,000 | 1,100,000,000 | |
Repayments of Long-term Debt | (1,116,000,000) | (230,000,000) | (78,000,000) | |
Payments of Debt Issuance Costs | (16,000,000) | (4,000,000) | (15,000,000) | |
Payments of Ordinary Dividends | 0 | 0 | 4,000,000 | |
Proceeds from Stock Options Exercised | 9,000,000 | 4,000,000 | 26,000,000 | |
Payments Related to Tax Withholding for Share-based Compensation | 0 | 0 | (10,000,000) | |
Proceeds from (Payments for) Other Financing Activities | (3,000,000) | 36,000,000 | 12,000,000 | |
Net cash provided by/(used in) financing activities | 74,000,000 | 521,000,000 | 1,031,000,000 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||
Net earnings | (1,043,000,000) | (256,000,000) | 499,000,000 | |
Adjustments to reconcile earnings from continued operations to net cash from operations: | ||||
Depreciation and Amortization | 489,000,000 | 422,000,000 | 378,000,000 | |
Goodwill, Impairment Loss | 687,000,000 | 210,000,000 | $ 0 | |
Foreign Currency Transaction Gain (Loss), before Tax | 13,000,000 | (9,000,000) | 30,000,000 | |
Amortization and write-off of debt financing costs | 14,000,000 | 8,000,000 | 7,000,000 | |
Gain (Loss) on Sale of Assets and Asset Impairment Charges | (29,000,000) | (98,000,000) | (31,000,000) | |
Disposal Group, Not Discontinued Operation, Gain (Loss) on Disposal | 0 | 0 | (1,000,000) | |
Derivative, Gain (Loss) on Derivative, Net | (2,000,000) | |||
Equity compensation | 68,000,000 | 35,000,000 | 54,000,000 | |
Provision/(benefit) for deferred income taxes | (28,000,000) | (127,000,000) | 9,000,000 | |
Provision for bad debts and inventory | 82,000,000 | 143,000,000 | 17,000,000 | |
Change in operating assets and liabilities: | ||||
(Increase)/decrease in trade receivables | 79,000,000 | 53,000,000 | (73,000,000) | |
(Increase)/decrease in inventories | 109,000,000 | (192,000,000) | (128,000,000) | |
Increase/(decrease) in accounts payable | (84,000,000) | (21,000,000) | 37,000,000 | |
Other assets/accrued liabilities, net - current and non-current | (166,000,000) | (128,000,000) | (423,000,000) | |
Net Cash Provided by (Used in) Operating Activities, Total | 268,000,000 | 254,000,000 | 439,000,000 | |
Effect of Exchange Rate on Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents, Continuing Operations | (6,000,000) | 11,000,000 | (33,000,000) | |
Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents | 289,000,000 | 280,000,000 | 449,000,000 | $ 896,000,000 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect | 9,000,000 | (169,000,000) | (447,000,000) | |
CASH AND EQUIVALENTS AT BEGINNING OF PERIOD | 280,000,000 | |||
CASH AND EQUIVALENTS AT END OF PERIOD | 289,000,000 | 280,000,000 | ||
SUPPLEMENTARY DISCLOSURE OF NON-CASH INVESTING ACTIVITY: | ||||
Stock Issued During Period, Value, Conversion of Convertible Securities | 0 | 0 | 362,000,000 | |
SUPPLEMENTARY CASH FLOW INFORMATION: | ||||
Interest paid | 226,000,000 | 188,000,000 | 116,000,000 | |
Income taxes paid, net | 43,000,000 | 99,000,000 | 53,000,000 | |
Capital Expenditures Incurred but Not yet Paid | 24,000,000 | 18,000,000 | 6,000,000 | |
Restructuring Reserve, Settled without Cash | 7,000,000 | $ 18,000,000 | $ 0 | |
Debtor Reorganization Items, Pension and Other Postretirement Related Charges | 12,000,000 | |||
Other Operating Activities, Cash Flow Statement | $ 1,000,000 |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 12 Months Ended |
Jun. 30, 2024 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Summary of Significant Accounting Policies | Business Catalent, Inc. ( “ Catalent ” or the “ Company ” ) directly and wholly owns PTS Intermediate Holdings LLC ( “PTS Intermediate ” ). PTS Intermediate directly and wholly owns Catalent Pharma Solutions, Inc. ( “ Operating Company ” ). The financial results of Catalent are primarily comprised of the financial results of Operating Company and its subsidiaries on a consolidated basis. The Company’s common stock, par value $0.01 (the “ Common Stock ” ) trades on the New York Stock Exchange under the symbol “ CTLT ” . |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Jun. 30, 2024 | |
Revenue Recognition [Abstract] | |
Revenue from Contract with Customer | REVENUE RECOGNITION The Company recognizes revenue in accordance with ASC 606, Revenue from Contracts with Customers . The Company generally earns its revenue by supplying goods or providing services under contracts with its customers in three primary revenue streams: manufacturing and commercial product supply, development services, and clinical supply services. The Company measures the revenue from customers based on the consideration specified in its contracts, excluding any sales incentive or amount collected on behalf of a third party, that the Company expects to be entitled to receive in exchange for transferring the promised goods to and/or performing services for the customer (the “Transaction Price”). To the extent the Transaction Price includes variable consideration, the Company estimates the amount of variable consideration that should be included in the Transaction Price utilizing either the expected value method or the most likely amount method, depending on which method is expected to better predict the amount of consideration to which the Company will be entitled. The value of variable consideration is included in the Transaction Price if, and to the extent, it is probable that a significant reversal of the amount of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved. These estimates are re-assessed each reporting period, as required, and any adjustment required is recorded on a cumulative catch-up basis, which would affect revenue and net income in the period of adjustment. The Company’s customer contracts generally include provisions entitling the Company to a termination penalty when the customer terminates prior to the contract’s nominal end date. The termination penalties in customer contracts vary but are generally considered substantive for accounting purposes and create enforceable rights and obligations throughout the stated durations of the contracts. The Company accounts for a contract termination as a contract modification in the period in which the customer gives notice of termination. The determination of the contract termination penalty is based on the terms stated in the relevant customer agreement. As of the modification date, the Company updates its estimate of the Transaction Price using the expected value method, subject to constraints, and to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved. These estimates are re-assessed each reporting period, as required, and any adjustment required is recorded on a cumulative catch-up basis, which would affect revenue and net income in the period of adjustment . Where multiple performance obligations exist in a single contract, the Company allocates consideration to each performance obligation using the “relative standalone selling price” as defined under ASC 606. Generally, the Company utilizes observable standalone selling prices in its allocations of consideration. If observable standalone selling prices are not available, the Company estimates the applicable standalone selling price using a cost-plus-margin approach or an adjusted market assessment approach, in each case, representing the amount that the Company believes the market is willing to pay for the applicable service. Payment is typically due 30 to 45 days following the invoice date, based on the payment terms set forth in the applicable customer agreement. The Company generally expenses sales commissions as incurred because either the amortization period is one year or less, or the balance with an amortization period greater than one year is not material. Customer contracts that include commitments by the Company to make facility space or equipment available may be deemed to include lease components, which are evaluated under ASC 842, Leases . For arrangements that contain both lease and non-lease components, consideration in the contract is allocated on a relative standalone selling-price basis. Determining the lease term and contract term of non-lease components, as well as the variable and fixed consideration in these arrangements, including when variability is resolved, often requires management judgment in order to determine the allocation to the lease and non-lease components. Manufacturing & Commercial Product Supply Revenue Manufacturing and commercial product supply revenue consists of revenue earned by manufacturing products supplied to customers under long-term commercial supply arrangements. In these arrangements, the customer typically owns and supplies the active pharmaceutical ingredient (“API”) or other proprietary materials used in the manufacturing process. The contract generally includes the terms of the manufacturing services and related product quality assurance procedures to comply with regulatory requirements. Due to the regulated nature of the Company’s business, these contract terms are highly interdependent and, therefore, are considered to be a single combined performance obligation. The transaction price is generally stated in the agreement as a fixed price per unit, with no contractual provision for a refund or price concession. In most circumstances, control is transferred to the customer over time, creating a corresponding right to recognize the related revenue, because there is no alternative use to the Company for the asset created and the Company has an enforceable right to payment for performance completed as of that date. The selection of the method for measuring progress towards the completion of the Company’s performance obligation requires judgment and is based on the nature of the products to be manufactured. For the majority of the Company’s arrangements, progress is measured based on the units of product that have successfully completed the contractually required product quality assurance process, because the conclusion of that process defines the time when the applicable contract and the related regulatory requirements permit the customer to exercise control over the product’s disposition. The customer is typically responsible for arranging the shipping and handling of product following completion of the quality assurance process. Payment is typically due 30 to 45 days after invoice date, based on the payment terms set forth in the applicable customer agreement. Beginning in the third quarter of fiscal 2023, the Company began recognizing commercial revenue for certain contracts in its Biologics segment that have a notably long manufacturing cycle, and for which the customer exercises control over the product throughout the manufacturing process. For these contracts, revenue is recognized over time and progress is measured using an input method based on effort expended, which provides an appropriate depiction of the Company’s progress toward fulfilling its performance obligation. Development Services and Clinical Supply Revenue Development services contracts generally take the form of short-term, fee-for-service arrangements. Performance obligations vary, but frequently include biologic cell-line development, performing formulation, analytical stability, or other services related to product development, and providing manufacturing services for products that are under development or otherwise not intended for commercial sale. They can also include a combination of the following services: the manufacturing, packaging, storage, distribution, destruction, and inventory management of customer clinical trial material, as well as the sourcing of comparator drug products on behalf of customers to be used in clinical trials to compare performance with the drug under clinical investigation. The transaction prices for these arrangements are fixed and include amounts stated in the contracts for each promised service, and each service is generally considered to be a separate performance obligation. In most instances, the Company recognizes revenue over time because there is no alternative use to the Company for the asset created and the Company has an enforceable right to payment for performance completed as of that date. The Company measures progress toward the completion of its performance obligations satisfied over time based on the nature of the services to be performed. For certain types of arrangements, revenue is recognized over time and measured using an output method based on the completion of tasks and activities that are performed to satisfy a performance obligation. For certain types of arrangements, revenue is recognized over time and measured using an input method based on effort expended. Each of these methods provides an appropriate depiction of the Company’s progress toward fulfilling its performance obligations for its respective arrangement. In certain arrangements that require a portion of the contract consideration to be received in advance at the commencement of the contract, such advance payment is initially recorded as a contract liability. In certain clinical supply arrangements, revenue is recognized at the point in time when control transfers, which occurs upon either the delivery of the related output of the service to the customer or the completion of quality testing with respect to the product, and the Company has an enforceable right to payment based on the terms of the arrangement. The Company records revenue for comparator sourcing arrangements on a net basis because it is acting as an agent that does not control the product or service before it is transferred to the customer. Payment for comparator sourcing activity is typically received in advance at the commencement of the contract and is initially recorded as a contract liability. The Company generally expenses sales commissions as incurred because either the amortization period is one year or less, or the balance with an amortization period greater than one year is not material. The following tables reflect net revenue for the fiscal years ended June 30, 2024, 2023, and 2022 by type of activity and reporting segment (in millions): Fiscal Year Ended June 30, 2024 Biologics Pharma and Consumer Health Total Manufacturing & commercial product supply $ 1,151 $ 1,577 $ 2,728 Development services & clinical supply 801 854 1,655 Total $ 1,952 $ 2,431 $ 4,383 Inter-segment revenue elimination (2) Combined net revenue $ 4,381 Fiscal Year Ended June 30, 2023 Biologics Pharma and Consumer Health Total Manufacturing & commercial product supply $ 450 $ 1,452 $ 1,902 Development services & clinical supply 1,528 835 2,363 Total $ 1,978 $ 2,287 $ 4,265 Inter-segment revenue elimination (2) Combined net revenue $ 4,263 Fiscal Year Ended June 30, 2022 Biologics Pharma and Consumer Health Total Manufacturing & commercial product supply $ 608 $ 1,474 $ 2,082 Development services & clinical supply 1,926 797 2,723 Total $ 2,534 $ 2,271 $ 4,805 Inter-segment revenue elimination (3) Combined net revenue $ 4,802 The following table reflects net revenue by the location where the goods were made or the service performed: (Dollars in millions) Fiscal Year Ended Fiscal Year Ended Fiscal Year Ended United States $ 2,823 $ 2,768 $ 3,084 Europe 1,359 1,257 1,506 Other 356 355 327 Elimination of revenue attributable to multiple locations (157) (117) (115) Total $ 4,381 $ 4,263 $ 4,802 Contract Liabilities Contract liabilities relate to cash consideration that the Company receives in advance of satisfying the related performance obligations. The contract liabilities balances (current and non-current) as of June 30, 2024 and June 30, 2023 were as follows: (Dollars in millions) Balance at June 30, 2023 $ 180 Balance at June 30, 2024 $ 255 Revenue recognized in the period from amounts included in contracts liability at the beginning of the period: $ (145) Contract liabilities that will be recognized within 12 months of June 30, 2024 are accounted for in Other accrued liabilities and those that will be recognized longer than 12 months after June 30, 2024 are accounted for within Other liabilities. Contract Assets Contract assets primarily relate to the Company’s conditional right to receive consideration for services that have been performed for customers but had not yet been invoiced as of June 30, 2024. Contract assets are transferred to trade receivables, net when the Company’s right to receive the consideration becomes unconditional. Contract assets totaled $602 million and $417 million as of June 30, 2024 and 2023, respectively. Contract assets expected to transfer to trade receivables within 12 months are accounted for within Prepaid expenses and other. Contract assets expected to transfer to trade receivables after 12 months are accounted for within Other long-term assets. Performance Obligations Remaining performance obligations represent firm orders for future development services as well as manufacturing and commercial product supply, including minimum volume commitments, for which there are incomplete performance obligations for work not yet completed under executed contracts. Remaining performance obligations as of June 30, 2024 and June 30, 2023 were $618 million and $335 million, respectively. The Company expects to recognize approximately 50% of the remaining performance obligations in existence as of June 30, 2024 after June 30, 2025. |
Business Combinations
Business Combinations | 12 Months Ended |
Jun. 30, 2024 | |
Business Combinations [Abstract] | |
Business Combination Disclosure | BUSINESS COMBINATIONS AND DIVESTITURES RheinCell Therapeutics GmbH Acquisition In August 2021, the Company acquired 100% of the equity interest in RheinCell Therapeutics GmbH (“RheinCell”) for $26 million, net of cash acquired. RheinCell was a developer and manufacturer of clinical- and cGMP-grade iPSCs based in Lagenfeld, Germany. The operations became part of the Company’s Biologics segment and built on its existing custom cell therapy process development and manufacturing capabilities with proprietary cGMP cell lines for iPSC-based therapies. The Company accounted for the RheinCell transaction using the acquisition method in accordance with ASC 805, Business Combinations . The Company funded the entire purchase price with cash on hand and allocated the purchase price among the assets acquired, recognizing $4 million of current liabilities, $1 million of other liabilities, $14 million of intangible assets, and goodwill of $17 million. Results of this business were not material to the Company’s statement of operations, financial position, or cash flows for the fiscal years ended June 30, 2023 and 2022. Bettera Holdings, LLC Acquisition In October 2021, the Company acquired 100% of the equity interest in Bettera Holdings, LLC (“Bettera Wellness”) for $1.00 billion cash. Bettera Wellness was a manufacturer of nutraceuticals and nutritional supplements in gummy, soft chew, and lozenge delivery formats and became part of the Company’s Pharma and Consumer Health segment. The Company accounted for the Bettera Wellness transaction using the acquisition method in accordance with ASC 805, Business Combinations . The Company estimated fair values at the date of acquisition for the allocation of consideration to the net tangible and intangible assets acquired and liabilities assumed and allocated the purchase price among the assets acquired, recognizing $361 million of other intangibles, net, $72 million of property, plant, and equipment, $31 million of inventories, $23 million of cash and cash equivalents, $16 million of trade receivables, $17 million of net other liabilities, and goodwill of $531 million. Results of this business were not material to the Company's statement of operations, financial position, or cash flows for the fiscal years ended June 30, 2023 and 2022. The carrying value of trade receivables, inventory, and trade payables, as well as certain other current and non-current assets and liabilities, generally represented the fair value at the date of acquisition. Property, plant, and equipment assets were valued using the cost approach, which is based on current replacement and/or reproduction cost of the related asset as new, less depreciation attributable to physical, functional, and economic factors. The Company then determined the remaining useful life based on the anticipated life of the asset and Company policy for similar assets. Core technology intangible assets of $338 million were valued using the multi-period, excess-earnings method, a method that values the intangible asset using the present value of the after-tax cash flows attributable to the intangible asset only. The significant assumptions used in developing the valuation included the estimated annual net cash flows (including application of an appropriate margin to forecasted revenue, revenue obsolescence rate, selling and marketing costs, return on working capital, contributory asset charges, and other factors), the discount rate that appropriately reflects the risk inherent in each future cash flow stream, and an assessment of the asset’s life cycle, as well as other factors. The assumptions used in the financial forecasts were based on historical data, supplemented by current and anticipated growth rates, management plans, and market-comparable information. Fair-value determinations require considerable judgment and are sensitive to changes in underlying assumptions and factors. The core technology intangible asset has a weighted average useful life of 10 years. Goodwill has been allocated to the Pharma and Consumer Health segment as shown in Note 4, Goodwill . Goodwill is mainly comprised of growth from expected increases in capacity utilization and new customers. The goodwill resulting from the Bettera Wellness acquisition is deductible for tax purposes. Vaccine Manufacturing and Innovation Centre UK Limited Asset Acquisition In April 2022, the Company, through its wholly owned subsidiary, Catalent Oxford Limited, acquired a development and manufacturing facility near Oxford, United Kingdom (“U.K.”) and certain related assets and liabilities from The Vaccine Manufacturing and Innovation Centre UK Limited for $134 million in cash, including $9 million of closing costs. The facility and related assets and liabilities became part of the Company’s Biologics segment. The Company accounted for this transaction as an acquisition of assets in accordance with ASC 805, Business Combinations . The Company funded this acquisition with cash on hand and allocated the purchase price among the net assets acquired, recognizing $1 million of current assets, $165 million of property, plant, and equipment, $18 million of current liabilities, and $14 million of other liabilities. Results of this business were not material to the Company’s statement of operations, financial position, or cash flows for the fiscal years ended June 30, 2023 and 2022. Princeton Cell Therapy Development and Manufacturing Acquisition In April 2022, the Company acquired a cell therapy commercial manufacturing facility and operations near Princeton, New Jersey (“Princeton”) from Erytech Pharma S.A. (“Erytech”) for $45 million in cash, subject to customary adjustments. In connection with the purchase, Erytech and the Company entered into a long-term supply agreement, under which the Company agreed to continue to manufacture and package an Erytech product at the Princeton facility. The operations and facility acquired became part of the Company’s Biologics segment. The Company accounted for this transaction using the acquisition method in accordance with ASC 805, Business Combinations . The Company funded this acquisition with cash on hand and allocated the purchase price among the assets acquired, recognizing $22 million of property, plant, and equipment, $10 million of other assets, $1 million of current liabilities, $10 million of other liabilities, and goodwill of $24 million. Results of this business were not material to the Company’s statement of operations, financial position, or cash flows for the fiscal years ended June 30,2023 and 2022. Metrics Contract Services Acquisition In October 2022, the Company acquired 100% of Metrics Contract Services (“Metrics”) from Mayne Pharma Group Limited for $474 million in cash. Metrics, based in Greenville, North Carolina, was an oral solids development and manufacturing business specializing in the manufacture of drugs containing highly potent active pharmaceutical ingredients. The operations and facility acquired became part of the Company’s Pharma and Consumer Health segment. The Company accounted for the Metrics transaction using the acquisition method in accordance with ASC 805, Business Combinations . The Company funded this acquisition with a portion of the proceeds of an October 2022 drawdown from its senior secured revolving credit facility. The Company estimated fair values at the date of acquisition for the allocation of consideration to the net tangible and intangible assets acquired and liabilities assumed. The purchase price was allocated to assets acquired and liabilities assumed in the acquisition as follows: (Dollars in millions) Purchase Price Allocation Trade receivables, net 15 Inventories 5 Property, plant, and equipment 195 Other intangibles, net 52 Other, net (12) Goodwill 219 Total assets acquired and liabilities assumed $ 474 The carrying value of trade receivables, inventory, and trade payables, as well as certain other current and non-current assets and liabilities generally represented the fair value at the date of acquisition. Other intangibles, net consists of customer relationships of $52 million, which were valued using the multi-period, excess-earnings method, a method that values the intangible asset using the present value of the after-tax cash flows attributable to the intangible asset only. The significant assumptions used in developing the valuation included the estimated annual net cash flows (including application of an appropriate margin to forecasted revenue, selling and marketing costs, return on working capital, contributory asset charges, and other factors), the discount rate that appropriately reflects the risk inherent in each future cash flow stream, and an assessment of the asset’s life cycle, as well as other factors. The assumptions used in the financial forecasts were based on historical data, supplemented by current and anticipated growth rates, management plans, and market-comparable information. Fair-value determinations require judgment and are sensitive to changes in underlying assumptions and factors. The customer relationship intangible asset has a weighted average useful life of 12 years. Property, plant, and equipment was valued using the cost approach, which is based on current replacement and/or reproduction cost of the asset as new, less depreciation attributable to physical, functional, and economic factors. The Company then determined the remaining useful life based on the anticipated life of the asset and Company policy for similar assets. Goodwill has been allocated to the Pharma and Consumer Health segment as shown in Note 4, Goodwill . Goodwill is mainly comprised of the growth from an expected increase in capacity utilization and potential new customers. The goodwill resulting from the Metrics acquisition is not deductible for U.S. income tax purposes. Results of the business acquired were not material to the Company’s consolidated statement of operations, financial position, or cash flows for the fiscal year ended June 30, 2023. Blow-Fill-Seal Divestitur e In March 2021, the Company sold 100% of the shares of Catalent USA Woodstock, Inc. and certain related assets (collectively, the “Blow-Fill-Seal Business”) for $331 million in total consideration ($300 million in cash). The Blow-Fill-Seal Business was part of the Pharma and Consumer Health segment. The carrying value of the net assets sold was $149 million, which included goodwill of $54 million. As a result of the sale, the Company realized a gain from divestiture of $182 million, net of transaction costs, for the fiscal year ended June 30, 2021. During the fiscal year ended June 30, 2022, the Company settled a post-closing purchase price adjustment, which resulted in a gain on sale of subsidiary of $1 million. All consideration received was measured at its divestiture date fair value. The Company valued the total consideration received from divestiture of the Blow-Fill-Seal Business as follows: (Dollars in millions) Fair value of consideration received Cash, gross $ 300 Note receivable (1) 47 Contingent consideration (2) — Other (3) (16) Total $ 331 (1) The note receivable, which provides for interest at a rate of 5.0% paid in kind, had an estimated fair value of $47 million and $51 million at June 30, 2021 and June 30, 2022, respectively. The fair value at divestiture date consisted of a $50 million aggregate principal amount less a $3 million discount determined using a discounted cash flow model. (2) The Company determined that the estimated fair value of the contingent consideration from the sale of the Blow-Fill-Seal Business at June 30, 2022 was zero, and therefore no contingent consideration was recorded at divestiture. If any contingent consideration is subsequently received, it will be recorded in the period in which it is received. The Company has elected an accounting policy to recognize increases in the carrying amount of the contingent consideration asset using the gain contingency guidance in ASC 450, Contingencies . (3) Other includes $8 million of transaction expenses, a working capital adjustment of $6 million, and a $2 million assumption of liabilities, resulting in net cash proceeds of $284 million. |
Goodwill
Goodwill | 12 Months Ended |
Jun. 30, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | GOODWILL The following table summarizes the changes from June 30, 2022 to June 30, 2024 in the carrying amount of goodwill in total and by reportable segment: (Dollars in millions) Biologics Pharma and Consumer Health Total Balance at June 30, 2022 $ 1,566 $ 1,440 $ 3,006 Additions — 219 219 Reallocation (1) (15) 15 — Foreign currency translation adjustments 12 12 24 Impairment — (210) (210) Balance at June 30, 2023 1,563 1,476 3,039 Foreign currency translation adjustments (8) (11) (19) Impairment (2) (392) (295) (687) Balance at June 30, 2024 $ 1,163 $ 1,170 $ 2,333 (1) The addition to goodwill is a result of the Metrics acquisition. For further details, see Note 3, Business Combinations and Divestitures . (2) Accumulated goodwill impairment charges amount to $897 million as of June 30, 2024. As part of the business reorganization discussed in Note 1, Basis of Presentation and Summary of Significant Accounting Policies , the goodwill from the previous Biologics, Softgel and Oral Technologies, Oral and Specialty Delivery, and Clinical Supply Services segments was reallocated between the current Biologics and Pharma and Consumer Health segments. |
Definite Lived Long-Lived Asset
Definite Lived Long-Lived Assets | 12 Months Ended |
Jun. 30, 2024 | |
Finite lived intangible assets disclosure [Abstract] | |
Definite Lived Long-Lived Assets | OTHER INTANGIBLES, NET The details of other intangible assets subject to amortization as of June 30, 2024 and June 30, 2023 are as follows (in millions): June 30, 2024 Weighted Average Life Gross Carrying Value Accumulated Amortization Net Carrying Value Amortized intangibles: Core technology 11 years $ 480 $ (205) $ 275 Customer relationships 13 years 1,076 (531) 545 Product relationships 8 years 242 (223) 19 Other 6 years 20 (18) 2 Total other intangibles $ 1,818 $ (977) $ 841 June 30, 2023 Weighted Average Life Gross Carrying Value Accumulated Amortization Net Carrying Value Amortized intangibles: Core technology 11 years $ 482 $ (164) $ 318 Customer relationships 13 years 1,079 (451) 628 Product relationships 8 years 243 (216) 27 Other 5 years 24 (17) 7 Total other intangibles $ 1,828 $ (848) $ 980 Amortization expense was $135 million, $136 million, and $123 million for the fiscal years ended June 30, 2024, 2023, and 2022, respectively. Future amortization expense is estimated to be: (Dollars in millions) 2025 2026 2027 2028 2029 Thereafter Total Amortization $ 133 $ 125 $ 109 $ 102 $ 98 $ 274 $ 841 |
Restructuring and Other Costs
Restructuring and Other Costs | 12 Months Ended |
Jun. 30, 2024 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Other Costs | RESTRUCTURING COSTS From time to time, the Company implements plans to restructure certain operations, both domestically and internationally. The restructuring plans focus on various aspects of operations, including, among others, closing and consolidating certain manufacturing operations, rationalizing headcount and aligning operations in a strategic and more cost-efficient structure. In addition, the Company may incur restructuring charges in the future in cases where a material change in the scope of operation with its business occurs. Employee-related restructuring costs consist primarily of severance costs and also include outplacement services provided to employees who have been involuntarily terminated and duplicate payroll costs during transition periods. Facility exit and other such restructuring costs consist of equipment relocation costs and costs associated with planned facility expansions and closures to streamline Company operations. During the fiscal year ended June 30, 2023, the Company adopted plans to reduce costs, consolidate facilities, and optimize its infrastructure across the organization. During the fiscal year ended June 30, 2024, the Company extended its restructuring efforts to reduce costs and headcount in its Biologics and Pharma and Consumer Health segments and corporate functions. In October 2023, and in connection with the Company’s restructuring plans, the Company committed to a plan to close operations at its San Francisco facility and to transfer those operations to other sites within its network. Results for San Francisco site closure are reflected in the tables below under the Pharma and Consumer Health segment. In connection with these restructuring plans, the Company reduced its headcount by approximately 700 employees and incurred cumulative employee-related charges of $ 26 Restructuring costs for the fiscal years ended June 30, 2024, 2023, and 2022 were recorded in Other operating expense in the consolidated statement of operations. The following tables summarize the restructuring costs by type of cost and reportable segment: Fiscal Year Ended June 30, (Dollars in millions) 2024 2023 2022 Restructuring costs: Employee-related reorganization $ 26 $ 38 $ 9 Facility exit and other costs 13 28 1 Total restructuring costs $ 39 $ 66 $ 10 The following table summarizes the charges recorded within restructuring costs by segment. These amounts are excluded from Segment EBITDA as described in Note 18, Segment Information . Fiscal Year Ended June 30, (Dollars in millions) 2024 2023 2022 Restructuring costs: Biologics $ 11 $ 41 $ 1 Pharma and Consumer Health 19 8 5 Non-segment (Corporate) 9 17 4 Total restructuring costs $ 39 $ 66 $ 10 The following tables illustrates the change in the employee separation-related liability associated with the plans. |
Restructuring, Incurred Cost, Statement of Income or Comprehensive Income [Extensible Enumeration] | Selling, general, and administrative expenses |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 12 Months Ended |
Jun. 30, 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 foreign operations. While the Company does not actively hedge against changes in foreign currency, the Company has mitigated the exposure arising from its investments in its European operations by denominating a portion of its Senior Notes in euros, the functional currency of such European operations. At June 30, 2024, the Company had euro-denominated debt outstanding of $883 million (U.S. dollar equivalent), which qualifies as a hedge of a net investment in foreign operations. For non-derivatives designated and qualifying as net investment hedges, the effective portion of the translation gains or losses are reported in accumulated other comprehensive income (loss) as part of the cumulative translation adjustment. The unhedged portions of the translation gains or losses are reported in the consolidated statements of operations. The following table includes net investment hedge activity during the fiscal years ended June 30, 2024 and 2023, respectively: (Dollars in millions) June 30, 2024 June 30, 2023 Unrealized foreign exchange gain (loss) within other comprehensive income $ 21 $ (30) The net accumulated gain of this net investment hedge within accumulated other comprehensive loss was $119 million as of June 30, 2024. Amounts are reclassified out of accumulated other comprehensive loss into earnings when the entity in which the gains and losses reside is either sold or substantially liquidated. Interest-Rate Swap In February 2021, the Company entered into a new interest-rate swap agreement with Bank of America N.A. (the “2021 Rate Swap”) that acted as a hedge against the economic effect of a portion of the variable-interest obligation associated with the Company’s U.S. dollar-denominated term loans under its senior secured credit facilities. The 2021 Rate Swap effectively fixed the rate of interest payable on that portion of the term 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 U.S. dollar-denominated term loans was effectively 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 net amount of deferred losses on cash flow hedges that is expected to be reclassified from accumulated other comprehensive loss into interest expense, net within the next twelve months is not material. 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 loss recorded in stockholder’s equity from marking the 2023 Rate Swap to market during the fiscal year ended June 30, 2024 was $26 million. A summary of the estimated fair value of the interest-rate swap reported in the consolidated balance sheets is stated in the table below: June 30, 2024 June 30, 2023 (in millions) Balance Sheet Classification Estimated Fair Value Balance Sheet Classification Estimated Fair Value Interest-rate swap Other long-term assets $ 36 Other long-term assets $ 62 |
Fair Value Measures and Disclos
Fair Value Measures and Disclosures | 12 Months Ended |
Jun. 30, 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 June 30, 2024 and 2023, respectively: (Dollars in millions) Basis of Fair Value Measurement June 30, 2024 Total Level 1 Level 2 Level 3 Assets: Interest-rate swap $ 36 $ — $ 36 $ — Trading securities $ 1 $ 1 $ — $ — June 30, 2023 Assets: Interest-rate swap $ 62 $ — $ 62 $ — Trading securities $ 1 $ 1 $ — $ — The fair value of the 2023 Rate Swap was 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 , there was no non-recurring fair value measurement during the fiscal year ended June 30, 2024, 2023 and 2022. |
Employee Retirement Benefit Pla
Employee Retirement Benefit Plans | 12 Months Ended |
Jun. 30, 2024 | |
Retirement Benefits [Abstract] | |
Employee Retirement Benefit Plans | EMPLOYEE RETIREMENT BENEFIT PLANS The Company sponsors various retirement plans, including defined benefit pension plans and defined contribution plans. Substantially all of the Company’s domestic non-union employees are eligible to participate in employer-sponsored retirement savings plans, which include plans created under Section 401(k) of the Internal Revenue Code that provide for the Company to match a portion of contributions by participating U.S. employees. The Company’s contributions to the plans are discretionary but are subject to certain minimum requirements as specified in the plans. The Company uses a measurement date of June 30 for all of its retirement and postretirement benefit plans. The Company records obligations related to its withdrawal from two multi-employer pension plan that covered former employees at three former sites. During the fiscal year ended June 30, 2024, 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. These withdrawals were classified as a mass withdrawal under the Multiemployer Pension Plan Amendments Act of 1980, as amended, and the Pension Protection Act of 2006 and resulted in the recognition of liabilities associated with the Company’s long-term obligations. The estimated discounted value of the contributions related to these plans is $44 million and $38 million as of June 30, 2024 and 2023, respectively. The annual cash impact associated with the Company’s long-term obligation arising from these plans are $2 million per year. In the twelve months ended June 30, 2024, 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 during the fiscal year ended June 30, 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 during the fiscal year ended June 30, 2024 and resulted in $21 million of payments with cash from the assets of the qualified pension plan and $3 million of Company cash. The following table provides a reconciliation of the change in projected benefit obligation and fair value of plan assets for the defined benefit retirement and other retirement plans, excluding the multi-employer pension plan liability: Retirement Benefits Other Post-Retirement Benefits June 30, June 30, (Dollars in millions) 2024 2023 2024 2023 Accumulated Benefit Obligation $ 206 $ 242 $ 1 $ 2 Change in Benefit Obligation Benefit obligation at beginning of year 246 268 2 2 Company service cost 3 3 — — Interest cost 11 9 — — Employee contributions 1 1 — — Settlements (36) (4) — — Benefits paid (11) (10) — — Actuarial gain 1 (28) — — Exchange rate gain (loss) (4) 7 — — Benefit obligation at end of year $ 211 $ 246 $ 2 $ 2 Change in Plan Assets Fair value of plan assets at beginning of year 202 240 — — Actual return on plan assets 3 (38) — — Company contributions 11 7 — — Employee contributions 1 1 — — Settlements (36) (4) — — Benefits paid (11) (10) — — Exchange rate gain (loss) (2) 6 — — Fair value of plan assets at end of year $ 168 $ 202 $ — $ — Funded Status Funded status at end of year (43) (44) (1) (2) Net pension liability $ (43) $ (44) $ (1) $ (2) The following table provides a reconciliation of the net amount recognized in the consolidated balance sheets: Retirement Benefits Other Post-Retirement Benefits June 30, June 30, (Dollars in millions) 2024 2023 2024 2023 Amounts Recognized in Statement of Financial Position Noncurrent assets $ 13 $ 18 $ — $ — Current liabilities (1) (1) — — Noncurrent liabilities (55) (61) (1) (2) Total liability (43) (44) (1) (2) Amounts Recognized in Accumulated Other Comprehensive Loss Prior service cost (1) (1) — — Net loss (gain) 58 66 (1) (1) Total accumulated other comprehensive loss (income) at the end of the fiscal year 57 65 (1) (1) Additional Information for Plan with ABO or PBO in Excess of Plan Assets Projected benefit obligation 93 129 1 2 Accumulated benefit obligation 89 126 1 2 Fair value of plan assets 37 68 — — Components of Net Periodic Benefit Cost Service cost 3 3 — — Interest cost 11 9 — — Expected return on plan assets (9) (9) — — Amortization of unrecognized: Net loss 2 1 — — Settlement/curtailment expense 12 1 — — Net periodic benefit cost $ 19 $ 5 $ — $ — Retirement Benefits Other Post-Retirement Benefits June 30, June 30, (Dollars in millions) 2024 2023 2024 2023 Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income Net loss (gain) arising during the year $ 6 $ 17 $ — $ — Exchange rate loss recognized during the year (14) — — — Total recognized in other comprehensive income $ (8) $ 17 $ — $ — Total Recognized in Net Periodic Benefit Cost and Other Comprehensive Income Total recognized in net periodic benefit cost and other comprehensive income $ 11 $ 22 $ — $ — Estimated Amounts to be Amortized from Accumulated Other Comprehensive Income into Net Periodic Benefit Cost Amortization of: Net loss $ 2 $ 2 $ — $ — Financial Assumptions Used to Determine Benefit Obligations at the Balance Sheet Date Discount rate (%) 4.3 % 4.3 % 5.0 % 4.7 % Rate of compensation increases (%) 2.7 % 2.7 % n/a n/a Financial Assumptions Used to Determine Net Periodic Benefit Cost for Financial Year Discount rate (%) 4.3 % 3.6 % 4.7 % 4.0 % Rate of compensation increases (%) 2.7 % 2.7 % n/a n/a Expected long-term rate of return (%) 4.3 % 3.9 % n/a n/a Expected Future Contributions Fiscal year 2025 $ 4 $ 8 $ — $ — Retirement Benefits Other Post-Retirement Benefits June 30, June 30, (Dollars in millions) 2024 2023 2024 2023 Expected Future Benefit Payments Financial year 2025 $ 12 $ 14 $ — $ — 2026 13 15 — — 2027 12 16 — — 2028 12 15 — — 2029 13 15 — — 2030-2034 71 84 1 1 Actual Asset Allocation (%) Cash 1.0 % 4.5 % — % — % Equities 2.9 % 2.9 % — % — % Government bonds 37.7 % 36.8 % — % — % Corporate bonds 16.8 % 16.2 % — % — % Property 4.5 % 3.3 % — % — % Insurance contracts 16.6 % 14.9 % — % — % Other 20.5 % 21.4 % — % — % Total 100.0 % 100.0 % — % — % Actual Asset Allocation (Amount) Cash $ 2 $ 9 $ — $ — Equities 5 6 — — Government bonds 63 74 — — Corporate bonds 28 33 — — Property 8 7 — — Insurance contracts 28 30 — — Other 34 43 — — Total $ 168 $ 202 $ — $ — Target Asset Allocation (%) Cash 1.0 % 4.5 % — % — % Equities 2.9 % 2.9 % — % — % Government bonds 37.7 % 36.8 % — % — % Corporate bonds 16.8 % 16.2 % — % — % Property 4.5 % 3.3 % — % — % Insurance contracts 16.6 % 14.9 % — % — % Other 20.5 % 21.4 % — % — % Total 100.0 % 100.0 % — % — % The Company’s Investment Committee employs a building-block approach in determining the long-term rate of return for plan assets, with proper consideration of diversification and rebalancing. Historical markets are studied and long-term historical relationships between equities and fixed income are preserved consistent with the widely accepted capital market principle that assets with higher volatility generate a greater return over the long run. Current market factors such as inflation and interest rates are evaluated before long-term capital market assumptions are determined. Peer data are reviewed to check for reasonability and appropriateness. Plan assets are recognized and measured at fair value in accordance with the accounting standards regarding fair value measurements. The following are valuation techniques used to determine the fair value of each major category of assets: • Short-term investments, equity securities, fixed-income securities, and real estate are valued using quoted market prices or other valuation methods, and thus are classified within Level 1 or Level 2. • Insurance contracts and other types of investments include investments with some observable and unobservable prices that are adjusted by cash contributions and distributions, and thus are classified within Level 2 or Level 3. The following tables provide a summary of plan assets that are measured at fair value as of June 30, 2024 and 2023, aggregated by the level in the fair value hierarchy within which those measurements fall: As of June 30, 2024 (dollars in millions) Level 1 Level 2 Level 3 Investments Measured at Net Asset Value Total Assets Equity securities $ — $ 5 $ — $ — $ 5 Debt securities — 91 — — 91 Real estate — 3 2 — 5 Other (1) — 42 25 — 67 Total $ — $ 141 $ 27 $ — $ 168 (1) Other, as of June 30, 2024, included $12 million of investments in hedge funds related to the Company’s U.K. pension plan, which were classified as Level 2. As of June 30, 2023 (dollars in millions) Level 1 Level 2 Level 3 Investments Measured at Net Asset Value Total Assets Equity securities $ — $ 6 $ — $ — $ 6 Debt securities — 107 — — 107 Real estate — 5 2 — 7 Other (1) — 57 25 — 82 Total $ — $ 175 $ 27 $ — $ 202 (1) Other, as of June 30, 2023, included $20 million of investments in hedge funds related to the Company’s U.K. pension plan, which were classified as Level 2. Level 3 other assets as of June 30, 2024 and 2023 consist of an insurance contract in the U.K. to fulfill the benefit obligations for a portion of the participant benefits. The value of this commitment is determined using the same assumptions and methods used to value the pension liability of the associated plan. Level 3 other assets for the same periods also include the partial funding of a pension liability relating to current and former employees of the Company’s Eberbach, Germany facility through a Company promissory note with an annual rate of interest of 5%. The value of this commitment fluctuates due to contributions and benefit payments in addition to loan interest. The following table provides a reconciliation of the beginning and ending balances of Level 3 assets as well as the changes during the period attributable to assets held and those purchases, sales, settlements, contributions, and benefits that were paid: Fair Value Measurement Using Significant Unobservable Inputs Total (Level 3) Fair Value Measurement Using Significant Unobservable Inputs Insurance Contracts Fair Value Measurement Using Significant Unobservable Inputs Other Total (Level 3) (Dollars in millions) Beginning Balance at June 30, 2023 $ 27 $ 8 $ 19 Actual return on plan assets: Relating to assets still held at the reporting date 1 1 — Purchases, sales, settlements, contributions and benefits paid (4) (2) (2) Transfers in or out of Level 3, net 3 — 3 Ending Balance at June 30, 2024 $ 27 $ 7 $ 20 The Company’s investment policy reflects the long-term nature of the plans’ funding obligations. The assets are invested to provide the opportunity for both income and growth of principal. This objective is pursued as a long-term goal designed to provide required benefits for participants without undue risk. It is expected that this objective can be achieved through a well-diversified asset portfolio. All equity investments are made within the guidelines of quality, marketability, and diversification mandated by the Employee Retirement Income Security Act of 1974, as amended (for plans subject to the act) and other relevant legal requirements. Investment managers are directed to maintain equity portfolios at a risk level approximately equivalent to that of the specific benchmark established for that portfolio. Assets invested in fixed income securities and pooled fixed-income portfolios are managed actively to pursue opportunities presented by changes in interest rates, credit ratings, or maturity premiums. Other Post-Retirement Benefits Assumed Healthcare Cost Trend Rates at the Balance Sheet Date 2024 2023 Healthcare cost trend rate – initial (%) Pre-65 n/a n/a Post-65 5.0 % 4.8 % Healthcare cost trend rate – ultimate (%) Pre-65 n/a n/a Post-65 4.1 % 4.1 % Year in which ultimate rates are reached Pre-65 n/a n/a Post-65 2040 2040 |
Other Income _ Expense
Other Income / Expense | 12 Months Ended |
Jun. 30, 2023 | |
Other Income and Expenses [Abstract] | |
Other Income and Other Expense Disclosure | OTHER EXPENSE (INCOME), NET The components of other expense (income), net for the fiscal years ended June 30, 2024, 2023, and 2022 are as follows: Fiscal Year Ended (Dollars in millions) 2024 2023 2022 Other expense (income), net Debt refinancing costs (1) $ — $ — $ 4 Foreign currency losses (gains) (2) 20 (8) 33 Other (3) 4 1 (9) Total other expense (income), net $ 24 $ (7) $ 28 (1) Debt financing costs for the fiscal year ended June 30, 2022 consists of $4 million of financing charges related to a tranche of U.S. dollar-denominated term loans under its senior secured credit facilities. (2) Foreign currency losses (gains) include both cash and non-cash transactions. |
Leases
Leases | 12 Months Ended |
Jun. 30, 2024 | |
Leases [Abstract] | |
Lessee, Finance Leases | LEASES The Company leases certain manufacturing and office facilities, land, vehicles, and equipment. The terms of these leases vary widely, although most have terms between 3 and 10 years. In accordance with ASC 842 , Leases , the Company recognizes a “right-of-use” asset and related lease liability at the commencement date of each lease based on the present value of the fixed lease payments over the expected lease term inclusive of any rent escalation provisions or incentives received. The lease term for this purpose will include any renewal period where the Company determines that it is reasonably certain that it will exercise the option to renew. While certain leases also permit the Company to terminate the lease in advance of the nominal term upon payment of an associated penalty, the Company generally does not take into account potential early termination dates in its determination of the lease term as it is reasonably certain not to exercise an early-termination option as of the lease commencement date. The Company uses its incremental borrowing rate, which represents the interest rate the Company would expect to pay on a collateralized basis to borrow an amount equal to the lease payments under similar terms, in order to calculate the present value of a lease, when the implicit discount rate for its leases is not readily determinable. For operating leases, fixed lease payments are recognized as operating lease expense on straight-line basis over the lease term. For finance leases, the Company recognizes depreciation expense associated with the leased asset acquired and interest expense related to the financing portion. Variable payments are recognized in the period incurred. As permitted by ASC 842, the Company has elected not to separate those components of a lease agreement not related to the leasing of an asset from those components that are related. The Company does not record leases with an initial lease term of 12 months or less on its consolidated balance sheets. The Company recognizes lease expense for these short-term leases on a straight-line basis over the lease term. Supplemental information concerning the leases recorded in the Company’s consolidated balance sheet as of June 30, 2024 is detailed in the following table: (Dollars in millions) Line item in the consolidated balance sheet Balance at Balance at Right-of-use assets: Finance leases Property, plant, and equipment, net $ 252 $ 274 Operating leases Other long-term assets 77 59 Current lease liabilities: Finance leases Current portion of long-term obligations and other short-term borrowings 20 18 Operating leases Other accrued liabilities 13 11 Non-current lease liabilities: Finance leases Long-term obligations, less current portion 312 323 Operating leases Other liabilities $ 70 $ 55 The components of the net lease costs for the fiscal years ended June 30, 2024 and 2023 reflected in the Company’s consolidated statement of operations were as follows: (Dollars in millions) Fiscal Year Ended Fiscal Year Ended Financing lease costs: Amortization of right-of-use assets $ 30 $ 21 Interest on lease liabilities 21 17 Total 51 38 Operating lease costs 27 35 Variable lease costs 16 10 Total lease costs $ 94 $ 83 The short-term lease cost amounted to $9 million, $10 million and $8 million during the fiscal year ended June 30, 2024, 2023 and 2022, respectively. The weighted average remaining lease term and weighted average discount rate related to the Company’s right-of-use assets and lease liabilities as of June 30, 2024 are as follows: Weighted average remaining lease term (years): Finance leases 16.1 Operating leases 9 Weighted average discount rate: Finance leases 6.2 % Operating leases 4.6 % Supplemental information concerning the cash-flow impact arising from the Company’s leases for the fiscal year ended June 30, 2024 recorded in the Company’s unaudited consolidated statement of cash flows is detailed in the following table (in millions): Fiscal Year Ended Fiscal Year Ended Fiscal Year Ended Cash paid for amounts included in lease liabilities: Financing cash flows used for finance leases $ 19 $ 19 $ 15 Operating cash flows used for finance leases 16 15 11 Operating cash flows used for operating leases 14 16 19 Non-cash transactions: Right-of-use assets obtained in exchange for new finance lease liabilities 57 133 59 Right-of-use assets obtained in exchange for new operating lease liabilities $ 38 $ 1 $ 31 As of June 30, 2024, the Company expects that its future minimum lease payments will become due and payable as follows: (Dollars in millions) Financing Leases Operating Leases Total 2025 $ 37 $ 17 $ 54 2026 39 15 54 2027 37 14 51 2028 34 13 47 2029 34 9 43 Thereafter 337 36 373 Total minimum lease payments 518 104 622 Less: interest 186 21 207 Total lease liabilities $ 332 $ 83 $ 415 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Jun. 30, 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 control 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. On November 15, 2023, the Warwick Defendants filed a motion to dismiss the Warwick Complaint. On June 28, 2024, the Court granted, in part, and denied, in part, the Company's motion to dismiss. The Warwick Defendants’ answer to the Warwick Complaint was filed on August 12, 2024. The Company believes that the Warwick Defendants have defenses to the remaining allegations and intends to vigorously defend against these allegations. 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. Merger Related Claims In connection with the proposed Merger, as disclosed below, three purported Catalent stockholders filed lawsuits alleging that certain disclosures made in the Proxy Statement were materially false and misleading: Garfield v. Barber, et al. , C.A. No. SOM-C 012027-24 (N.J. Super. Ct.), which was filed in the Superior Court of New Jersey; Moore v. Catalent, Inc., et al. , No. 652403/2024 (N.Y. Sup. Ct.), which was filed in the Supreme Court of New York; and Clark v. Catalent, Inc., et al. , No. 652407/2024 (N.Y. Sup. Ct.), which was filed in the Supreme Court of New York. The aforementioned lawsuits are collectively referred to as the “Actions.” The Actions alleged, among other things, that certain disclosures in the Proxy Statement filed in connection with the Merger Agreement omitted certain purportedly material information. The Garfield Action asserted violations of New Jersey Uniform Securities Law § 49:3-71 and negligent misrepresentation and concealment and negligence under New Jersey common law. The Moore and Clark Actions each asserted a single claim for breach of fiduciary duty. On May 17, 2024, the Garfield Action was voluntarily dismissed with prejudice. On June 26, 2024, the Moore and Clark Actions were voluntarily dismissed with 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 twelve months ended June 30, 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 $16.50 billion on an enterprise value basis. Consummation of the Merger is subject to customary closing conditions, including (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. |
Segment Information
Segment Information | 12 Months Ended | |
Jun. 30, 2024 | ||
Segment Reporting [Abstract] | ||
Segment Reporting Disclosure [Text Block] | SEGMENT AND GEOGRAPHIC INFORMATION The CODM evaluates the performance and allocates resources based upon a number of factors, the primary being its segment earnings before other (income) expense, impairments, restructuring costs, interest expense, income tax expense, and depreciation and amortization ( “ Segment EBITDA ” ). Segment EBITDA is subject to important limitations. These consolidated financial statements include information concerning Segment EBITDA (a) because Segment EBITDA is an operational measure used by management in the assessment of the operating segments, the allocation of resources to the segments, and the setting of strategic goals and annual goals for the segments, and (b) in order to provide supplemental information that the Company considers relevant for the readers of the consolidated financial statements. The Company’s presentation of Segment EBITDA may not be comparable to similarly titled measures used by other companies. The following table includes Segment EBITDA for each of the Company’s current reporting segments during the fiscal years ended June 30, 2024, 2023, and 2022: (Dollars in millions) Fiscal Year Ended June 30, 2024 2023 2022 Segment EBITDA reconciled to net (loss) earnings: Biologics $ 272 $ 277 $ 777 Pharma and Consumer Health 597 548 589 Subtotal $ 869 $ 825 $ 1,366 Reconciling items to net (loss) earnings Unallocated costs (1) $ (1,153) $ (559) $ (286) Depreciation and amortization (489) (422) (378) Interest expense, net (254) (186) (123) Income tax benefit (expense) (16) 86 (80) Net (loss) earnings $ (1,043) $ (256) $ 499 (1) Unallocated costs include restructuring and special items, stock-based compensation, gain (loss) on sale of subsidiary, impairment charges, certain other corporate directed costs, and other costs that are not allocated to the segments as follows: (Dollars in millions) Fiscal Year Ended June 30, 2024 2023 2022 Impairment charges and gain/loss on sale of assets (a) $ (29) $ (98) $ (31) Stock-based compensation (68) (35) (54) Restructuring and other special items (b) (178) (98) (55) Pension settlement charges (12) — — Goodwill impairment charges (c) (687) (210) — Gain on sale of subsidiary — — 1 Other (expense) income, net (d) (24) 7 (28) Non-allocated corporate costs, net (155) (125) (119) Total unallocated costs $ (1,153) $ (559) $ (286) (a) Impairment charges and gain/loss on sale of assets for the fiscal year ended June 30, 2024 includes right-of-use asset impairment charges associated with under utilized facilities in our Biologics segment, obsolete equipment that could not be sold or repurposed in our Biologics segment and under utilized suites from a canceled project in our Pharma and Consumer Health segment. For the fiscal year ended June 30, 2023, impairment charges are primarily associated with an idle facility in the Biologics segment and obsolete equipment that could not be sold or repurposed in the Pharma and Consumer Health segment. Further detail is provided below. For the fiscal year ended June 30, 2023, the Company identified an indicator of impairment related to one of its facilities in the Biologics segment given the plans to pause any additional spend on site development due to a lack of demand, leading to a partial impairment charge of $54 million. The Company primarily utilized a market and income approach for real property and a cost approach for personal property to record the partial impairment on its idle facility. Impairment charges are recorded in Other operating expense in the consolidated statements of operations. Also, in the fiscal year ended June 30, 2023, the Company identified an indicator of impairment related to obsolete equipment from a terminated project in the Pharma and Consumer Health segment, leading to a full impairment charge of $18 million. For the fiscal year ended June 30, 2022, impairment charges are primarily due to fixed asset impairment charges associated with dedicated equipment for a product the Company no longer manufactures in its Pharma and Consumer Health segment and obsolete equipment in its Biologics segment. (b) Restructuring and other special items during the fiscal year ended June 30, 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 6, Restructuring Costs to the Consolidated Financial Statements. Restructuring and other special items for the fiscal year ended June 30, 2023 includes (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 fiscal year ended June 30, 2022 include (i) transaction and integration costs primarily associated with the Princeton, Bettera Wellness, Delphi, Hepatic, Acorda, and RheinCell transactions and (ii) unrealized losses on venture capital investments. (c) Goodwill impairment charges during the fiscal year ended June 30, 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. The goodwill impairment charges for the fiscal year ended June 30, 2023 was associated with the Company’s Consumer Health reporting unit. For further details, see Note 4, Goodwill . (d) Refer to Note 15, Other (income) expense, net for details of financing charges and foreign currency translation adjustments recorded within other (income) expense, net. The following table includes total assets for each segment, as well as reconciling items necessary to total the amounts reported in the consolidated balance sheets. Total Assets (Dollars in millions) June 30, 2024 June 30, 2023 Biologics $ 5,326 $ 5,746 Pharma and Consumer Health 4,643 4,867 Corporate and eliminations (216) 164 Total assets $ 9,753 $ 10,777 Capital Expenditures Fiscal Year Ended June 30, (Dollars in millions) 2024 2023 2022 Biologics $ 171 $ 346 $ 453 Pharma and Consumer Health 164 214 183 Corporate 16 34 30 Total capital expenditures (1) $ 351 $ 594 $ 666 (1) Include both cash and non-cash capital expenditures Long Lived Assets The following table presents long-lived assets—consisting of property, plant, and equipment, net of accumulated depreciation—by geographic area: (Dollars in millions) June 30, 2024 June 30, 2023 United States $ 2,625 $ 2,758 Europe 828 765 Other 190 159 Total $ 3,643 $ 3,682 | [1] |
[1]Refer to Note 15, Other (income) expense, net for details of financing charges and foreign currency translation adjustments recorded within other (income) expense, net. |
Supplemental Balance Sheet Info
Supplemental Balance Sheet Information | 12 Months Ended |
Jun. 30, 2024 | |
Balance Sheet Related Disclosures [Abstract] | |
Supplemental Balance Sheet Information | SUPPLEMENTAL BALANCE SHEET INFORMATION Supplemental balance sheet information at June 30, 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) June 30, June 30, Raw materials and supplies $ 646 $ 781 Work-in-process 138 186 Total inventories, gross 784 967 Inventory cost adjustment (210) (190) Total inventories $ 574 $ 777 Prepaid expenses and other current assets Prepaid expenses and other current assets consist of the following: (Dollars in millions) June 30, June 30, Prepaid expenses $ 46 $ 53 Short-term contract assets 585 399 Spare parts supplies 29 24 Prepaid income tax 45 77 Non-U.S. value-added tax 60 38 Other current assets 48 42 Total prepaid expenses and other $ 813 $ 633 Property, plant, and equipment, net Property, plant, and equipment, net consist of the following: (Dollars in millions) June 30, June 30, Land, buildings, and improvements $ 1,987 $ 1,887 Machinery and equipment 2,538 2,287 Furniture and fixtures 62 61 Construction in progress 971 1,043 Property, plant, and equipment, at cost 5,558 5,278 Accumulated depreciation (1,915) (1,596) Property, plant, and equipment, net $ 3,643 $ 3,682 Other long-term assets Other long-term assets consist of the following: (Dollars in millions) June 30, June 30, Operating lease right-of-use-assets $ 77 $ 59 Note receivable 56 53 Corporate-owned life insurance policies 48 41 Venture capital investments 47 36 Interest-rate swap 36 62 Pension assets 13 18 Long-term contract assets 17 18 Other 38 42 Total other long-term assets $ 332 $ 329 Other accrued liabilities Other accrued liabilities consist of the following: (Dollars in millions) June 30, June 30, Contract liability $ 250 $ 167 Accrued employee-related expenses 181 160 Accrued expenses 115 134 Operating lease liabilities 13 11 Restructuring accrual 10 19 Accrued interest 37 35 Accrued income tax 16 44 Total other accrued liabilities $ 622 $ 570 |
Subsequent Events (Notes)
Subsequent Events (Notes) | 3 Months Ended |
Dec. 31, 2024 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | SUBSEQUENT EVENTS |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) | 12 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2022 | |
Pay vs Performance Disclosure | |||
Net Income (Loss) Attributable to Parent | $ (1,043,000,000) | $ (256,000,000) | $ 499,000,000 |
Insider Trading Arrangements
Insider Trading Arrangements | 12 Months Ended |
Jun. 30, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Basis of Presentation and Sum_2
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Jun. 30, 2024 | |
Accounting Policies [Abstract] | |
Segment Reporting, Policy | Reportable Segments Effective July 1, 2022, in connection with the appointment of a new President and Chief Executive Officer, the Company changed its operating structure and reorganized its executive leadership team accordingly. The current organizational structure includes two operating and reportable segments—(i) Biologics and (ii) Pharma and Consumer Health—which are summarized below. • The Biologics segment provides development and manufacturing for biologic proteins; cell, gene, and other nucleic acid therapies; plasmid DNA (“pDNA”); induced pluripotent stem cells (“iPSCs”), and oncolytic viruses; and vaccines. It also provides formulation, development, and manufacturing for parenteral dose forms, including vials, prefilled syringes, and cartridges; analytical development and testing services for large molecules. • 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. Each segment reports through a separate management team and ultimately reports to the Company’s President and Chief Executive Officer, who is designated as the Chief Operating Decision Maker (“CODM”) for segment reporting purposes. The Company’s operating segments are the same as its reportable segments. All prior-period comparative segment information has been recast retrospectively to reflect the current reportable segments in accordance with Accounting Standards Codification (“ASC”) 280, Segment Reporting |
Basis of Presentation | Basis of Presentation These financial statements include all of the Company’s subsidiaries, including those operating outside the United States ( “ U.S. ” ), and are prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”). All significant transactions among the Company’s subsidiaries and reporting segments have been eliminated, other than as noted. |
Use of Estimates | Use of Estimates |
Reclassifications | Reclassification |
Translation and Transaction of Foreign Currencies | Foreign Currency Translation The financial statements of the Company’s operations outside the U.S. are generally determined using the local currency as the functional currency. Adjustments to translate the assets and liabilities of the foreign operations into U.S. dollars are accumulated as a component of other comprehensive income utilizing period-end exchange rates. Since July 2018, the Company has accounted for its Argentine operations as highly inflationary, but this status has not had a material effect on the consolidated financial statements. The currency fluctuation related to certain long-term inter-company loans where settlement is not planned or anticipated in the foreseeable future have been recorded within the cumulative translation adjustment, a component of other comprehensive income. In addition, the currency fluctuation associated with the portion of the Company’s euro-denominated debt designated as a net investment hedge is included as a component of other comprehensive income. Foreign currency transaction gains and losses are calculated using weighted average exchange rates for the period and are included in the consolidated statements of operations in “ other expense, net. ” Such foreign currency transaction gains and losses include inter-company loans that are repayable in the foreseeable future. |
Cash and Cash Equivalents | Cash and Cash Equivalents All liquid investments purchased with original maturities of three months or less are considered cash equivalents. The carrying value of these cash equivalents approximates fair value. |
Receivables and Allowance dor Doubtful Accounts | Allowance for Credit Losses |
Concentrations of Credit Risk and Major Customers | Concentrations of Credit Risk and Major Customers Concentration of credit risk, with respect to accounts receivable, is limited due to the large number of customers and their dispersion across different geographic areas. The customers are primarily concentrated in the biopharmaceutical, pharmaceutical, and consumer products industries. The Company does not normally require collateral or any other security to support credit sales. The Company performs ongoing credit evaluations of its customers’ financial conditions and maintains reserves for credit losses. Such losses historically have been within the Company’s expectations. For the fiscal years ended June 30, 2024, 2023, and 2022 the Company had one customer that accounted for 16%, 10% and 10%, respectively, of its net revenue, which was primarily recorded in the Biologics segment. |
Inventories | Inventories |
Goodwill | Goodwill The Company accounts for purchased goodwill and intangible assets with indefinite lives in accordance with ASC 350, Intangibles - Goodwill and Other . Under ASC 350, goodwill and intangible assets with indefinite lives are not amortized, but instead are tested for impairment at least annually. The Company performs an impairment evaluation of goodwill an nually, on April 1, or when circumstances otherwise indicate an evaluation should be performed. The evaluation may begin with a qualitative assessment for each reporting unit to determine whether it is more-likely-than-not that the fair value of the reporting unit is less than its carrying value. Factors considered in a qualitative assessment include, among other things, macroeconomic conditions, industry and market considerations, financial performance of the respective reporting unit, and other relevant entity and reporting-unit specific considerations. If the qualitative assessment does not generate a positive response, or if no qualitative assessment is performed, a quantitative assessment is performed and requires management to estimate future cash flows, growth rates, and macroeconomic, industry, and market conditions. For more information regarding goodwill activity during fiscal 2022, 2023, and 2024, see Note 4, Goodwill |
Property and Equipment | Property and equipment are stated at cost. Depreciation expense is computed using the straight-line method over the estimated useful lives of the assets, including leasehold improvements and finance lease right-of-use assets that are amortized over the shorter of their useful lives or the terms of the respective leases. The Company generally uses the following range of useful lives for its property and equipment categories: buildings and improvements—5 to 50 years; machinery and equipment—3 to 10 years; and furniture and fixtures—3 to 7 years. Depreciation expense was $354 million, $286 million, and $255 million for fiscal 2024, 2023, and 2022, respectively. Depreciation expense includes amortization of assets related to financing leases. The Company charges repairs and maintenance costs to expense as incurred. The amount of capitalized interest for fiscal 2024, 2023, and 2022 was $10 million, $24 million, and $15 million, respectively. |
Intangible Assets, Finite-Lived | Intangible assets with finite lives, including customer relationships, core technology, patents, and trademarks, are amortized over their useful lives. The Company also capitalizes certain computer software and development costs in other intangibles, net, when incurred in connection with developing or obtaining computer software for internal use. Capitalized software costs are amortized over the estimated useful lives of the software, which generally range from 3 to 5 years. The Company evaluates the recoverability of its other long-lived assets, including amortizing intangible assets, if circumstances indicate impairment may have occurred pursuant to ASC 360, Property, Plant and Equipment . This analysis is performed by comparing the respective carrying values of the assets to the current and expected future cash flows, on an un-discounted basis, to be generated from such assets. If such analysis indicates that the carrying value of these assets is not recoverable, the carrying value of such assets is reduced to fair value through a charge to the consolidated statements of operations. Fair value is determined based on assumptions the Company believes marketplace participants would utilize and comparable marketplace information in similar arm’s length transactions. In conjunction with the goodwill impairment tests performed as of March 31, 2023 and September 30, 2023, the Company identified indicators of impairment related to its definite-lived intangibles. The results of the analysis did not result in an impairment charge. |
Post-Retirement and Pension Plans | Post-Retirement and Pension Plans The Company sponsors various retirement and pension plans, including defined benefit and defined contribution retirement plans. The measurement of the related benefit obligations and the net periodic benefit costs recorded each year are based upon actuarial computations, which require management’s judgment as to certain assumptions. These assumptions include the discount rates used in computing the present value of the benefit obligations and the net periodic benefit costs, the expected future rate of salary increases (for pay-related plans) and the expected long-term rate of return on plan assets (for funded plans). The Company uses the corridor approach to amortize actuarial gains and losses. The Company has elected to utilize an approach to estimate the service and interest components of net periodic benefit cost for benefit plans that discounts the individual expected cash flows using the applicable spot rates derived from the yield curve over the projected cash flow period. The expected long-term rate of return on plan assets is based on the target asset allocation and the average expected rate of growth for the asset classes invested. The average expected rate of growth is derived from a combination of historic returns, current market indicators, and the expected risk premium for each asset class. The Company uses a measurement date of June 30 for all its retirement and postretirement benefit plans. |
Derivative Instruments and Hedging Activities | Derivative Instruments, Hedging Activities, and Fair Value Derivative Instruments and Hedging Activities The Company is exposed to certain risks arising from both its business operations and economic conditions. The Company principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Company manages economic risks, including interest-rate, liquidity, and credit risk primarily by managing the amount, sources, and duration of its debt funding and the use of derivative financial instruments. Specifically, the Company enters into derivative financial instruments from time to time to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the values of which are determined by interest rates. The Company’s derivative financial instruments are used to manage differences in the amount, timing, and duration of the Company’s known or expected cash receipts and its known or expected cash payments principally related to the Company’s borrowings. The Company does not net any of its derivative positions under master netting arrangements. |
Fair Value Measurement, Policy | Fair Value The Company is required to measure certain assets and liabilities at fair value, either upon initial measurement or for subsequent accounting or reporting. The Company uses fair value extensively, including in the initial measurement of net assets acquired in a business combination and when accounting for and reporting on certain financial instruments. The Company estimates fair value using an exit price approach, which requires, among other things, that it determine the price that would be received to sell an asset or paid to transfer a liability in an orderly market. The determination of an exit price is considered from the perspective of market participants, considering the highest and best use of assets and, for liabilities, assuming the risk of non-performance will be the same before and after the transfer. A single estimate of fair value results from a complex series of judgments about future events and uncertainties and relies heavily on estimates and assumptions. When estimating fair value, depending on the nature and complexity of the assets or liability, the Company may use one or all of the following approaches: • Market approach, which is based on market prices and other information from market transactions involving identical or comparable assets or liabilities. • Cost approach, which is based on the cost to acquire or construct comparable assets less an allowance for functional and/or economic obsolescence. • Income approach, which is based on the present value of the future stream of net cash flows. Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. |
Self Insurance | Self-Insurance |
Accumulated Other Comprehensive Income/(Loss) | Accumulated Other Comprehensive Loss Accumulated other comprehensive loss, which is reported in the accompanying consolidated statements of changes in shareholders’ equity, consists of foreign currency translation, net change in marketable securities, and defined benefit pension plan changes. |
Research and Development Costs | Research and Development Costs |
Earnings Per Share | Earnings Per Share The Company reports net earnings per share in accordance with ASC 260, Earnings per Share . Effective as of the first quarter of fiscal 2023, the Company computed earnings per share (“EPS”) of the Company’s common stock, par value $0.01 (the “Common Stock”) using the treasury stock method. Prior to fiscal 2023, the Company computed earnings (loss) per share of the Common Stock using the two-class method required due to the participating nature of the previously outstanding Series A Preferred Stock (as defined and discussed in Note 13, Equity and Accumulated Other Comprehensive Loss ). Diluted earnings per common share measures the performance of the Company over the reporting period while giving effect to all potential shares of Common Stock that were dilutive and outstanding during the period. The denominator includes the weighted average over the measurement period of the sum of the number of shares of Common Stock outstanding and the number of additional such shares that would have been outstanding if the shares of Common Stock that were both potentially issuable and dilutive had been issued. |
Income Taxes | Income Taxes In accordance with ASC 740, Income Taxes, the Company accounts for income taxes using the asset and liability method. The asset and liability method requires recognition of deferred tax assets and liabilities for expected future tax consequences of temporary differences that currently exist between tax bases and financial reporting bases of the Company’s assets and liabilities. The Company measures deferred tax assets and liabilities using enacted tax rates in the respective jurisdictions in which it operates. In assessing the ability to realize deferred tax assets, the Company considers whether it is more likely than not that the Company will be able to realize some or all of the deferred tax assets. The calculation of the Company’s tax liabilities involves dealing with uncertainties in the application of complex tax regulations in each of its tax jurisdictions. The number of years with open tax audits varies by tax jurisdiction. A number of years may lapse before a particular matter is audited and finally resolved. The Company applies ASC 740 to determine the accounting for uncertain tax positions. This standard prescribes a minimum recognition threshold a tax position is required to meet before the Company may recognize the position in its financial statements. The standard also provides guidance on derecognition, measurement, classification, interest and penalties, accounting in interim periods, and disclosure. The Company previously elected not to reclassify the income tax effects stranded in accumulated other comprehensive income to retained earnings. |
Equity-Based Compensation | Stock-Based Compensation The Company accounts for its stock-based compensation in accordance with ASC 718, Compensation—Stock Compensation. Under ASC 718, companies recognize compensation expense using a fair-value-based method for costs related to share-based payments, including stock options and restricted stock units. The expense is measured based on the grant date fair value of the awards, and the expense is recorded over the applicable requisite service period. Forfeitures are recognized as and when they occur. In the absence of an observable market price for a share-based award, the fair value is based upon a valuation methodology that takes into consideration various factors, including the exercise price of the award, the expected term of the award, the current price of the underlying shares, the expected volatility of the underlying share price, the expected dividends on the underlying shares and the risk-free interest rate. The terms of the Company’s stock-based compensation plans permit an employee holding vested stock options or restricted stock units to elect to have the Company use a portion of the shares otherwise issuable upon the employee’s exercise of the option or grant, a so-called “net settlement transaction,” as a means of paying the exercise price, meeting tax withholding requirements, or both. New Accounting Standards Not Adopted as of June 30, 2024 In November 2023, the FASB issued Accounting Standards Update (“ASU”) 2023-07, Improvements to Reportable Segment Disclosures , which intends to improve disclosures regarding significant segment expenses. The standard is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. The amendments should be applied retrospectively to all prior periods presented in the financial statements. The Company is currently evaluating the impact of adopting this guidance on its consolidated financial statements. In December 2023, the FASB issued ASU 2023-09, Improvements to Income Tax Disclosures , which focuses on income tax disclosures by requiring public business entities, on an annual basis, to disclose specific categories in the rate reconciliation, provide information for reconciling items that meet a quantitative threshold, and certain information about income taxes paid. The standard is effective for annual periods beginning after December 15, 2024, with early adoption permitted. The amendments should be applied on a prospective basis. Retrospective application is permitted. The Company is currently evaluating the impact of adopting this guidance on its consolidated financial statements. |
Revenue from Contract with Cust
Revenue from Contract with Customer (Policies) | 12 Months Ended |
Jun. 30, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contract with Customer | REVENUE RECOGNITION The Company recognizes revenue in accordance with ASC 606, Revenue from Contracts with Customers . The Company generally earns its revenue by supplying goods or providing services under contracts with its customers in three primary revenue streams: manufacturing and commercial product supply, development services, and clinical supply services. The Company measures the revenue from customers based on the consideration specified in its contracts, excluding any sales incentive or amount collected on behalf of a third party, that the Company expects to be entitled to receive in exchange for transferring the promised goods to and/or performing services for the customer (the “Transaction Price”). To the extent the Transaction Price includes variable consideration, the Company estimates the amount of variable consideration that should be included in the Transaction Price utilizing either the expected value method or the most likely amount method, depending on which method is expected to better predict the amount of consideration to which the Company will be entitled. The value of variable consideration is included in the Transaction Price if, and to the extent, it is probable that a significant reversal of the amount of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved. These estimates are re-assessed each reporting period, as required, and any adjustment required is recorded on a cumulative catch-up basis, which would affect revenue and net income in the period of adjustment. The Company’s customer contracts generally include provisions entitling the Company to a termination penalty when the customer terminates prior to the contract’s nominal end date. The termination penalties in customer contracts vary but are generally considered substantive for accounting purposes and create enforceable rights and obligations throughout the stated durations of the contracts. The Company accounts for a contract termination as a contract modification in the period in which the customer gives notice of termination. The determination of the contract termination penalty is based on the terms stated in the relevant customer agreement. As of the modification date, the Company updates its estimate of the Transaction Price using the expected value method, subject to constraints, and to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved. These estimates are re-assessed each reporting period, as required, and any adjustment required is recorded on a cumulative catch-up basis, which would affect revenue and net income in the period of adjustment . Where multiple performance obligations exist in a single contract, the Company allocates consideration to each performance obligation using the “relative standalone selling price” as defined under ASC 606. Generally, the Company utilizes observable standalone selling prices in its allocations of consideration. If observable standalone selling prices are not available, the Company estimates the applicable standalone selling price using a cost-plus-margin approach or an adjusted market assessment approach, in each case, representing the amount that the Company believes the market is willing to pay for the applicable service. Payment is typically due 30 to 45 days following the invoice date, based on the payment terms set forth in the applicable customer agreement. The Company generally expenses sales commissions as incurred because either the amortization period is one year or less, or the balance with an amortization period greater than one year is not material. Customer contracts that include commitments by the Company to make facility space or equipment available may be deemed to include lease components, which are evaluated under ASC 842, Leases . For arrangements that contain both lease and non-lease components, consideration in the contract is allocated on a relative standalone selling-price basis. Determining the lease term and contract term of non-lease components, as well as the variable and fixed consideration in these arrangements, including when variability is resolved, often requires management judgment in order to determine the allocation to the lease and non-lease components. Manufacturing & Commercial Product Supply Revenue Manufacturing and commercial product supply revenue consists of revenue earned by manufacturing products supplied to customers under long-term commercial supply arrangements. In these arrangements, the customer typically owns and supplies the active pharmaceutical ingredient (“API”) or other proprietary materials used in the manufacturing process. The contract generally includes the terms of the manufacturing services and related product quality assurance procedures to comply with regulatory requirements. Due to the regulated nature of the Company’s business, these contract terms are highly interdependent and, therefore, are considered to be a single combined performance obligation. The transaction price is generally stated in the agreement as a fixed price per unit, with no contractual provision for a refund or price concession. In most circumstances, control is transferred to the customer over time, creating a corresponding right to recognize the related revenue, because there is no alternative use to the Company for the asset created and the Company has an enforceable right to payment for performance completed as of that date. The selection of the method for measuring progress towards the completion of the Company’s performance obligation requires judgment and is based on the nature of the products to be manufactured. For the majority of the Company’s arrangements, progress is measured based on the units of product that have successfully completed the contractually required product quality assurance process, because the conclusion of that process defines the time when the applicable contract and the related regulatory requirements permit the customer to exercise control over the product’s disposition. The customer is typically responsible for arranging the shipping and handling of product following completion of the quality assurance process. Payment is typically due 30 to 45 days after invoice date, based on the payment terms set forth in the applicable customer agreement. Beginning in the third quarter of fiscal 2023, the Company began recognizing commercial revenue for certain contracts in its Biologics segment that have a notably long manufacturing cycle, and for which the customer exercises control over the product throughout the manufacturing process. For these contracts, revenue is recognized over time and progress is measured using an input method based on effort expended, which provides an appropriate depiction of the Company’s progress toward fulfilling its performance obligation. Development Services and Clinical Supply Revenue Development services contracts generally take the form of short-term, fee-for-service arrangements. Performance obligations vary, but frequently include biologic cell-line development, performing formulation, analytical stability, or other services related to product development, and providing manufacturing services for products that are under development or otherwise not intended for commercial sale. They can also include a combination of the following services: the manufacturing, packaging, storage, distribution, destruction, and inventory management of customer clinical trial material, as well as the sourcing of comparator drug products on behalf of customers to be used in clinical trials to compare performance with the drug under clinical investigation. The transaction prices for these arrangements are fixed and include amounts stated in the contracts for each promised service, and each service is generally considered to be a separate performance obligation. In most instances, the Company recognizes revenue over time because there is no alternative use to the Company for the asset created and the Company has an enforceable right to payment for performance completed as of that date. The Company measures progress toward the completion of its performance obligations satisfied over time based on the nature of the services to be performed. For certain types of arrangements, revenue is recognized over time and measured using an output method based on the completion of tasks and activities that are performed to satisfy a performance obligation. For certain types of arrangements, revenue is recognized over time and measured using an input method based on effort expended. Each of these methods provides an appropriate depiction of the Company’s progress toward fulfilling its performance obligations for its respective arrangement. In certain arrangements that require a portion of the contract consideration to be received in advance at the commencement of the contract, such advance payment is initially recorded as a contract liability. In certain clinical supply arrangements, revenue is recognized at the point in time when control transfers, which occurs upon either the delivery of the related output of the service to the customer or the completion of quality testing with respect to the product, and the Company has an enforceable right to payment based on the terms of the arrangement. The Company records revenue for comparator sourcing arrangements on a net basis because it is acting as an agent that does not control the product or service before it is transferred to the customer. Payment for comparator sourcing activity is typically received in advance at the commencement of the contract and is initially recorded as a contract liability. The Company generally expenses sales commissions as incurred because either the amortization period is one year or less, or the balance with an amortization period greater than one year is not material. The following tables reflect net revenue for the fiscal years ended June 30, 2024, 2023, and 2022 by type of activity and reporting segment (in millions): Fiscal Year Ended June 30, 2024 Biologics Pharma and Consumer Health Total Manufacturing & commercial product supply $ 1,151 $ 1,577 $ 2,728 Development services & clinical supply 801 854 1,655 Total $ 1,952 $ 2,431 $ 4,383 Inter-segment revenue elimination (2) Combined net revenue $ 4,381 Fiscal Year Ended June 30, 2023 Biologics Pharma and Consumer Health Total Manufacturing & commercial product supply $ 450 $ 1,452 $ 1,902 Development services & clinical supply 1,528 835 2,363 Total $ 1,978 $ 2,287 $ 4,265 Inter-segment revenue elimination (2) Combined net revenue $ 4,263 Fiscal Year Ended June 30, 2022 Biologics Pharma and Consumer Health Total Manufacturing & commercial product supply $ 608 $ 1,474 $ 2,082 Development services & clinical supply 1,926 797 2,723 Total $ 2,534 $ 2,271 $ 4,805 Inter-segment revenue elimination (3) Combined net revenue $ 4,802 The following table reflects net revenue by the location where the goods were made or the service performed: (Dollars in millions) Fiscal Year Ended Fiscal Year Ended Fiscal Year Ended United States $ 2,823 $ 2,768 $ 3,084 Europe 1,359 1,257 1,506 Other 356 355 327 Elimination of revenue attributable to multiple locations (157) (117) (115) Total $ 4,381 $ 4,263 $ 4,802 Contract Liabilities Contract liabilities relate to cash consideration that the Company receives in advance of satisfying the related performance obligations. The contract liabilities balances (current and non-current) as of June 30, 2024 and June 30, 2023 were as follows: (Dollars in millions) Balance at June 30, 2023 $ 180 Balance at June 30, 2024 $ 255 Revenue recognized in the period from amounts included in contracts liability at the beginning of the period: $ (145) Contract liabilities that will be recognized within 12 months of June 30, 2024 are accounted for in Other accrued liabilities and those that will be recognized longer than 12 months after June 30, 2024 are accounted for within Other liabilities. Contract Assets Contract assets primarily relate to the Company’s conditional right to receive consideration for services that have been performed for customers but had not yet been invoiced as of June 30, 2024. Contract assets are transferred to trade receivables, net when the Company’s right to receive the consideration becomes unconditional. Contract assets totaled $602 million and $417 million as of June 30, 2024 and 2023, respectively. Contract assets expected to transfer to trade receivables within 12 months are accounted for within Prepaid expenses and other. Contract assets expected to transfer to trade receivables after 12 months are accounted for within Other long-term assets. Performance Obligations Remaining performance obligations represent firm orders for future development services as well as manufacturing and commercial product supply, including minimum volume commitments, for which there are incomplete performance obligations for work not yet completed under executed contracts. Remaining performance obligations as of June 30, 2024 and June 30, 2023 were $618 million and $335 million, respectively. The Company expects to recognize approximately 50% of the remaining performance obligations in existence as of June 30, 2024 after June 30, 2025. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2022 | |
Disaggregation of Revenue [Line Items] | |||
Disaggregation of Revenue | The following tables reflect net revenue for the fiscal years ended June 30, 2024, 2023, and 2022 by type of activity and reporting segment (in millions): Fiscal Year Ended June 30, 2024 Biologics Pharma and Consumer Health Total Manufacturing & commercial product supply $ 1,151 $ 1,577 $ 2,728 Development services & clinical supply 801 854 1,655 Total $ 1,952 $ 2,431 $ 4,383 Inter-segment revenue elimination (2) Combined net revenue $ 4,381 Fiscal Year Ended June 30, 2023 Biologics Pharma and Consumer Health Total Manufacturing & commercial product supply $ 450 $ 1,452 $ 1,902 Development services & clinical supply 1,528 835 2,363 Total $ 1,978 $ 2,287 $ 4,265 Inter-segment revenue elimination (2) Combined net revenue $ 4,263 | ||
Net revenue | $ 4,381 | $ 4,263 | $ 4,802 |
Elimination of revenue attributable to multiple locations | $ (157) | (117) | (115) |
Revenue Recognition and Deferred Revenue [Abstract] | |||
Contractual Liabilities | The contract liabilities balances (current and non-current) as of June 30, 2024 and June 30, 2023 were as follows: (Dollars in millions) Balance at June 30, 2023 $ 180 Balance at June 30, 2024 $ 255 Revenue recognized in the period from amounts included in contracts liability at the beginning of the period: $ (145) | ||
geographical [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Disaggregation of Revenue | The following table reflects net revenue by the location where the goods were made or the service performed: (Dollars in millions) Fiscal Year Ended Fiscal Year Ended Fiscal Year Ended United States $ 2,823 $ 2,768 $ 3,084 Europe 1,359 1,257 1,506 Other 356 355 327 Elimination of revenue attributable to multiple locations (157) (117) (115) Total $ 4,381 $ 4,263 $ 4,802 | ||
United States [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Net revenue | $ 2,823 | 2,768 | 3,084 |
Europe | |||
Disaggregation of Revenue [Line Items] | |||
Net revenue | 1,359 | 1,257 | 1,506 |
International Other | |||
Disaggregation of Revenue [Line Items] | |||
Net revenue | $ 356 | $ 355 | $ 327 |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Jun. 30, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Carrying Amount of Goodwill | The following table summarizes the changes from June 30, 2022 to June 30, 2024 in the carrying amount of goodwill in total and by reportable segment: (Dollars in millions) Biologics Pharma and Consumer Health Total Balance at June 30, 2022 $ 1,566 $ 1,440 $ 3,006 Additions — 219 219 Reallocation (1) (15) 15 — Foreign currency translation adjustments 12 12 24 Impairment — (210) (210) Balance at June 30, 2023 1,563 1,476 3,039 Foreign currency translation adjustments (8) (11) (19) Impairment (2) (392) (295) (687) Balance at June 30, 2024 $ 1,163 $ 1,170 $ 2,333 (1) The addition to goodwill is a result of the Metrics acquisition. For further details, see Note 3, Business Combinations and Divestitures . (2) Accumulated goodwill impairment charges amount to $897 million as of June 30, 2024. As part of the business reorganization discussed in Note 1, Basis of Presentation and Summary of Significant Accounting Policies , the goodwill from the previous Biologics, Softgel and Oral Technologies, Oral and Specialty Delivery, and Clinical Supply Services segments was reallocated between the current Biologics and Pharma and Consumer Health segments. Goodwill Impairment Charges The Company performs an annual goodwill impairment test for each reporting unit on April 1, the measurement date and more frequently if indicators for potential impairment exist. Fiscal Year 2024 During the three months ended September 30, 2023, 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 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 further impairment. Based on its quantitative assessment conducted as of April 1, 2024, the Company determined for each reporting unit with goodwill that its respective fair value exceeded its carrying value, and hence, there was no impairment. Subsequent to the quantitative assessment performed as of April 1, 2024, the Company performed qualitative assessments as of June 30, 2024, which yielded no indicators of impairment. The Company assessed the current and future economic outlook for its reporting units, the Company's stock price as well as current macroeconomic conditions impacting the consumer health and biotech industries and current interest rates. Fiscal Year 2023 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 terminal revenue growth rate of 3.0% 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. Subsequent to the quantitative assessment performed as of March 31, 2023, the Company performed qualitative assessments as of April 1, 2023, which yielded no indicators of impairment. |
Definite Lived Long-Lived Ass_2
Definite Lived Long-Lived Assets (Tables) | 12 Months Ended |
Jun. 30, 2024 | |
Finite lived intangible assets disclosure [Abstract] | |
Other Intangible Assets Subject to Amortization | The details of other intangible assets subject to amortization as of June 30, 2024 and June 30, 2023 are as follows (in millions): June 30, 2024 Weighted Average Life Gross Carrying Value Accumulated Amortization Net Carrying Value Amortized intangibles: Core technology 11 years $ 480 $ (205) $ 275 Customer relationships 13 years 1,076 (531) 545 Product relationships 8 years 242 (223) 19 Other 6 years 20 (18) 2 Total other intangibles $ 1,818 $ (977) $ 841 June 30, 2023 Weighted Average Life Gross Carrying Value Accumulated Amortization Net Carrying Value Amortized intangibles: Core technology 11 years $ 482 $ (164) $ 318 Customer relationships 13 years 1,079 (451) 628 Product relationships 8 years 243 (216) 27 Other 5 years 24 (17) 7 Total other intangibles $ 1,828 $ (848) $ 980 |
Future Amortization Expense | Future amortization expense is estimated to be: (Dollars in millions) 2025 2026 2027 2028 2029 Thereafter Total Amortization $ 133 $ 125 $ 109 $ 102 $ 98 $ 274 $ 841 |
Restructuring and Other Costs (
Restructuring and Other Costs (Tables) | 12 Months Ended |
Jun. 30, 2024 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring and Other Costs | The following tables summarize the restructuring costs by type of cost and reportable segment: Fiscal Year Ended June 30, (Dollars in millions) 2024 2023 2022 Restructuring costs: Employee-related reorganization $ 26 $ 38 $ 9 Facility exit and other costs 13 28 1 Total restructuring costs $ 39 $ 66 $ 10 The following table summarizes the charges recorded within restructuring costs by segment. These amounts are excluded from Segment EBITDA as described in Note 18, Segment Information . Fiscal Year Ended June 30, (Dollars in millions) 2024 2023 2022 Restructuring costs: Biologics $ 11 $ 41 $ 1 Pharma and Consumer Health 19 8 5 Non-segment (Corporate) 9 17 4 Total restructuring costs $ 39 $ 66 $ 10 The following tables illustrates the change in the employee separation-related liability associated with the plans. (Dollars in millions) Employee-related restructuring Balance, June 30, 2023 $ 19 Charges 26 Payments (35) Balance, June 30, 2024 $ 10 |
Long-Term Obligations and Other
Long-Term Obligations and Other Short-Term Borrowings (Tables) | 12 Months Ended |
Jun. 30, 2024 | |
Debt Disclosure [Abstract] | |
Maturities of long-term obligations | Maturities of long-term obligations, including finance leases of $332 million, and other short-term borrowings for future fiscal years are: (Dollars in millions) 2025 2026 2027 2028 2029 Thereafter Total Maturities of long-term and other obligations $ 48 $ 49 $ 49 $ 3,350 $ 569 $ 884 $ 4,949 |
Fair Value Disclosures [Abstract] | |
Schedule Of Carrying And Fair Value Of Financial Instruments Table | The carrying amounts and the estimated fair values of financial instruments as of June 30, 2024 and June 30, 2023 are as follows: June 30, 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 $ 498 $ 500 $ 482 2.375% euro Senior Notes due 2028 Level 2 883 849 904 784 3.125% Senior Notes due 2029 Level 2 550 532 550 481 3.500% senior notes due 2030 Level 2 650 627 650 566 Senior secured credit facilities & other Level 2 2,366 2,107 2,284 2,141 Subtotal $ 4,949 $ 4,613 $ 4,888 $ 4,454 Unamortized discount and debt issuance (44) — (39) — Total debt $ 4,905 $ 4,613 $ 4,849 $ 4,454 |
Earnings Per Share Calculation
Earnings Per Share Calculation (Tables) | 12 Months Ended |
Jun. 30, 2024 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | The reconciliations between basic and diluted EPS attributable to Catalent common shareholders for the fiscal years ended June 30, 2024, 2023, and 2022 are as follows: Fiscal year ended June 30, (In millions, except per share data) 2024 2023 2022 Net (loss) earnings $ (1,043) $ (256) $ 499 Less: Net earnings attributable to preferred shareholders — — (16) Net (loss) earnings attributable to common shareholders $ (1,043) $ (256) $ 483 Weighted average shares outstanding – basic 181 181 176 Weighted average dilutive securities issuable - stock plans — — 2 Total weighted average shares outstanding – diluted 181 181 178 (Loss) earnings per share: Basic $ (5.76) $ (1.42) $ 2.74 Diluted $ (5.76) $ (1.42) $ 2.73 |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The diluted weighted average number of shares outstanding for the fiscal years ended June 30, 2024, 2023, and 2022 did not include the following weighted average number of shares of Common Stock associated with the formerly outstanding Series A Preferred Stock or the weighted average number of shares of Common Stock associated with outstanding equity grants due to their antidilutive effect: Fiscal year ended June 30, (share counts in millions) 2024 2023 2022 Series A Preferred Stock — — 3 |
Derivative Instruments and He_2
Derivative Instruments and Hedging Activities (Tables) | 12 Months Ended |
Jun. 30, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Net Investment Hedge in Accumulated Other Comprehensive Income (Loss) and Statement of Financial Performance [Table Text Block] | The following table includes net investment hedge activity during the fiscal years ended June 30, 2024 and 2023, respectively: (Dollars in millions) June 30, 2024 June 30, 2023 Unrealized foreign exchange gain (loss) within other comprehensive income $ 21 $ (30) |
Schedule of Interest Rate Derivatives | A summary of the estimated fair value of the interest-rate swap reported in the consolidated balance sheets is stated in the table below: June 30, 2024 June 30, 2023 (in millions) Balance Sheet Classification Estimated Fair Value Balance Sheet Classification Estimated Fair Value Interest-rate swap Other long-term assets $ 36 Other long-term assets $ 62 |
Fair Value Measures and Discl_2
Fair Value Measures and Disclosures (Tables) | 12 Months Ended |
Jun. 30, 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 June 30, 2024 and 2023, respectively: (Dollars in millions) Basis of Fair Value Measurement June 30, 2024 Total Level 1 Level 2 Level 3 Assets: Interest-rate swap $ 36 $ — $ 36 $ — Trading securities $ 1 $ 1 $ — $ — June 30, 2023 Assets: Interest-rate swap $ 62 $ — $ 62 $ — Trading securities $ 1 $ 1 $ — $ — |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jun. 30, 2024 | |
Income Tax Disclosure [Abstract] | |
Earnings/(loss) from continuing operations before income taxes and discontinued operations | Earnings (loss) before income taxes are as follows for fiscal 2024, 2023, and 2022: Fiscal Year Ended (Dollars in millions) 2024 2023 2022 U.S. operations $ (1,158) $ (410) $ 224 Non-U.S. operations 131 68 355 Total $ (1,027) $ (342) $ 579 |
Provision/ (benefit) for income taxes | The provision for income taxes consists of the following for fiscal 2024, 2023, and 2022: Fiscal Year Ended (Dollars in millions) 2024 2023 2022 Current: Federal $ — $ (1) $ (8) State and local (5) (1) 14 Non-U.S. 48 43 66 Total current expense $ 43 $ 41 $ 72 Deferred: Federal $ (15) $ (99) $ 6 State and local (11) (4) (5) Non-U.S. (1) (24) 7 Total deferred (benefit) expense $ (27) $ (127) $ 8 Total provision (benefit) $ 16 $ (86) $ 80 |
Reconciliation of the provision/(benefit) based on the federal statutory income tax rate | A reconciliation of the provision starting from the tax computed at the federal statutory income tax rate to the tax computed at the Company’s effective income tax rate is as follows for the fiscal years ended 2024, 2023, and 2022: Fiscal Year Ended (Dollars in millions) 2024 2023 2022 Provision at U.S. federal statutory tax rate $ (216) $ (72) $ 122 State and local income taxes (44) (13) 10 Foreign tax rate differential (7) (5) (28) Global intangible low tax income 11 2 6 Goodwill impairment 80 9 — Other permanent items 25 4 2 Unrecognized tax positions — (1) 1 Tax valuation allowance 160 5 94 Foreign tax credit 1 (30) (43) Withholding tax and other foreign taxes 3 1 1 Change in tax rate 1 18 1 R&D tax credit (4) (3) (2) Swiss tax reform — — (83) Other 6 (1) (1) Total provision (benefit) $ 16 $ (86) $ 80 |
Components of the deferred income tax assets and liabilities | Deferred income taxes arise from temporary differences between the financial reporting and tax reporting bases of assets and liabilities, and operating loss and tax credit carryforwards for tax purposes. The components of the Company’s deferred income tax assets and liabilities are as follows at June 30, 2024 and 2023: Fiscal Year Ended (Dollars in millions) 2024 2023 Deferred income tax assets: Accrued liabilities $ 70 $ 57 Equity compensation 18 13 Loss and tax credit carryforwards 293 287 Foreign currency 3 3 Pension 18 19 Interest-related 101 50 Intangible 6 — Lease liabilities 37 38 Euro-denominated debt — 1 Other — 1 Total deferred income tax assets $ 546 $ 469 Valuation allowance (315) (159) Net deferred income tax assets $ 231 $ 310 Fiscal Year Ended (Dollars in millions) 2024 2023 Deferred income tax liabilities: Euro-denominated debt $ (4) $ — Property-related (205) (247) Goodwill and other intangibles — (71) Deferred revenue (2) — Right-of-use assets (16) (13) Other (2) — Total deferred income tax liabilities $ (229) $ (331) Net deferred tax asset (liability) $ 2 $ (21) |
Deferred tax assets and liabilities | Deferred tax assets and liabilities in the preceding table are in the following captions in the consolidated balance sheets at June 30, 2024 and 2023: Fiscal Year Ended (Dollars in millions) 2024 2023 Non-current deferred tax asset $ 7 $ 55 Non-current deferred tax liability (5) (76) Net deferred tax asset (liability) $ 2 $ (21) |
Reconciliation of Unrecognized tax benefit, excluding accrued interest | A reconciliation of unrecognized tax benefits, excluding accrued interest, as of June 30, 2024, 2023, and 2022 is as follows: (Dollars in millions) Balance at June 30, 2021 $ 5 Additions for tax positions related to the current year 1 Additions for tax positions of prior years 1 Settlements (1) Lapse of the applicable statute of limitations (1) Balance at June 30, 2022 $ 5 Additions for tax positions of prior years 2 Reductions for tax positions of prior years (1) Settlements (1) Lapse of the applicable statute of limitations (1) Balance at June 30, 2023 $ 4 Additions for tax positions of prior years 1 Reductions for tax positions of prior years (1) Balance at June 30, 2024 $ 4 |
Employee Retirement Benefit P_2
Employee Retirement Benefit Plans (Tables) | 12 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Retirement Benefits [Abstract] | ||
Benefit obligation and fair value of plan assets for the defined benefit retirement and postretirement plan | The following table provides a reconciliation of the change in projected benefit obligation and fair value of plan assets for the defined benefit retirement and other retirement plans, excluding the multi-employer pension plan liability: Retirement Benefits Other Post-Retirement Benefits June 30, June 30, (Dollars in millions) 2024 2023 2024 2023 Accumulated Benefit Obligation $ 206 $ 242 $ 1 $ 2 Change in Benefit Obligation Benefit obligation at beginning of year 246 268 2 2 Company service cost 3 3 — — Interest cost 11 9 — — Employee contributions 1 1 — — Settlements (36) (4) — — Benefits paid (11) (10) — — Actuarial gain 1 (28) — — Exchange rate gain (loss) (4) 7 — — Benefit obligation at end of year $ 211 $ 246 $ 2 $ 2 Change in Plan Assets Fair value of plan assets at beginning of year 202 240 — — Actual return on plan assets 3 (38) — — Company contributions 11 7 — — Employee contributions 1 1 — — Settlements (36) (4) — — Benefits paid (11) (10) — — Exchange rate gain (loss) (2) 6 — — Fair value of plan assets at end of year $ 168 $ 202 $ — $ — Funded Status Funded status at end of year (43) (44) (1) (2) Net pension liability $ (43) $ (44) $ (1) $ (2) | |
Reconciliation of the net amount recognized in the Consolidated Balance Sheets | The following table provides a reconciliation of the net amount recognized in the consolidated balance sheets: Retirement Benefits Other Post-Retirement Benefits June 30, June 30, (Dollars in millions) 2024 2023 2024 2023 Amounts Recognized in Statement of Financial Position Noncurrent assets $ 13 $ 18 $ — $ — Current liabilities (1) (1) — — Noncurrent liabilities (55) (61) (1) (2) Total liability (43) (44) (1) (2) Amounts Recognized in Accumulated Other Comprehensive Loss Prior service cost (1) (1) — — Net loss (gain) 58 66 (1) (1) Total accumulated other comprehensive loss (income) at the end of the fiscal year 57 65 (1) (1) Additional Information for Plan with ABO or PBO in Excess of Plan Assets Projected benefit obligation 93 129 1 2 Accumulated benefit obligation 89 126 1 2 Fair value of plan assets 37 68 — — Components of Net Periodic Benefit Cost Service cost 3 3 — — Interest cost 11 9 — — Expected return on plan assets (9) (9) — — Amortization of unrecognized: Net loss 2 1 — — Settlement/curtailment expense 12 1 — — Net periodic benefit cost $ 19 $ 5 $ — $ — Retirement Benefits Other Post-Retirement Benefits June 30, June 30, (Dollars in millions) 2024 2023 2024 2023 Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income Net loss (gain) arising during the year $ 6 $ 17 $ — $ — Exchange rate loss recognized during the year (14) — — — Total recognized in other comprehensive income $ (8) $ 17 $ — $ — Total Recognized in Net Periodic Benefit Cost and Other Comprehensive Income Total recognized in net periodic benefit cost and other comprehensive income $ 11 $ 22 $ — $ — Estimated Amounts to be Amortized from Accumulated Other Comprehensive Income into Net Periodic Benefit Cost Amortization of: Net loss $ 2 $ 2 $ — $ — Financial Assumptions Used to Determine Benefit Obligations at the Balance Sheet Date Discount rate (%) 4.3 % 4.3 % 5.0 % 4.7 % Rate of compensation increases (%) 2.7 % 2.7 % n/a n/a Financial Assumptions Used to Determine Net Periodic Benefit Cost for Financial Year Discount rate (%) 4.3 % 3.6 % 4.7 % 4.0 % Rate of compensation increases (%) 2.7 % 2.7 % n/a n/a Expected long-term rate of return (%) 4.3 % 3.9 % n/a n/a Expected Future Contributions Fiscal year 2025 $ 4 $ 8 $ — $ — Retirement Benefits Other Post-Retirement Benefits June 30, June 30, (Dollars in millions) 2024 2023 2024 2023 Expected Future Benefit Payments Financial year 2025 $ 12 $ 14 $ — $ — 2026 13 15 — — 2027 12 16 — — 2028 12 15 — — 2029 13 15 — — 2030-2034 71 84 1 1 Actual Asset Allocation (%) Cash 1.0 % 4.5 % — % — % Equities 2.9 % 2.9 % — % — % Government bonds 37.7 % 36.8 % — % — % Corporate bonds 16.8 % 16.2 % — % — % Property 4.5 % 3.3 % — % — % Insurance contracts 16.6 % 14.9 % — % — % Other 20.5 % 21.4 % — % — % Total 100.0 % 100.0 % — % — % Actual Asset Allocation (Amount) Cash $ 2 $ 9 $ — $ — Equities 5 6 — — Government bonds 63 74 — — Corporate bonds 28 33 — — Property 8 7 — — Insurance contracts 28 30 — — Other 34 43 — — Total $ 168 $ 202 $ — $ — Target Asset Allocation (%) Cash 1.0 % 4.5 % — % — % Equities 2.9 % 2.9 % — % — % Government bonds 37.7 % 36.8 % — % — % Corporate bonds 16.8 % 16.2 % — % — % Property 4.5 % 3.3 % — % — % Insurance contracts 16.6 % 14.9 % — % — % Other 20.5 % 21.4 % — % — % Total 100.0 % 100.0 % — % — % | |
Summary of plan assets that are measured in fair value | The following tables provide a summary of plan assets that are measured at fair value as of June 30, 2024 and 2023, aggregated by the level in the fair value hierarchy within which those measurements fall: As of June 30, 2024 (dollars in millions) Level 1 Level 2 Level 3 Investments Measured at Net Asset Value Total Assets Equity securities $ — $ 5 $ — $ — $ 5 Debt securities — 91 — — 91 Real estate — 3 2 — 5 Other (1) — 42 25 — 67 Total $ — $ 141 $ 27 $ — $ 168 (1) Other, as of June 30, 2024, included $12 million of investments in hedge funds related to the Company’s U.K. pension plan, which were classified as Level 2. | As of June 30, 2023 (dollars in millions) Level 1 Level 2 Level 3 Investments Measured at Net Asset Value Total Assets Equity securities $ — $ 6 $ — $ — $ 6 Debt securities — 107 — — 107 Real estate — 5 2 — 7 Other (1) — 57 25 — 82 Total $ — $ 175 $ 27 $ — $ 202 |
Reconciliation of beginning and ending balances of level 3 assets | The following table provides a reconciliation of the beginning and ending balances of Level 3 assets as well as the changes during the period attributable to assets held and those purchases, sales, settlements, contributions, and benefits that were paid: Fair Value Measurement Using Significant Unobservable Inputs Total (Level 3) Fair Value Measurement Using Significant Unobservable Inputs Insurance Contracts Fair Value Measurement Using Significant Unobservable Inputs Other Total (Level 3) (Dollars in millions) Beginning Balance at June 30, 2023 $ 27 $ 8 $ 19 Actual return on plan assets: Relating to assets still held at the reporting date 1 1 — Purchases, sales, settlements, contributions and benefits paid (4) (2) (2) Transfers in or out of Level 3, net 3 — 3 Ending Balance at June 30, 2024 $ 27 $ 7 $ 20 | |
Assumed healthcare cost trend rates | Other Post-Retirement Benefits Assumed Healthcare Cost Trend Rates at the Balance Sheet Date 2024 2023 Healthcare cost trend rate – initial (%) Pre-65 n/a n/a Post-65 5.0 % 4.8 % Healthcare cost trend rate – ultimate (%) Pre-65 n/a n/a Post-65 4.1 % 4.1 % Year in which ultimate rates are reached Pre-65 n/a n/a Post-65 2040 2040 |
Equity and Accumulated Other Co
Equity and Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Jun. 30, 2024 | |
Equity [Abstract] | |
Accumulated other comprehensive earnings/(loss) | or the fiscal years ended June 30, 2024, 2023, and 2022, the changes in accumulated other comprehensive loss, net of tax by component are as follows: (Dollars in millions) Foreign Currency Translation Adjustment Pension Liability Adjustments Derivatives and Hedges Marketable Securities Other Total Balance at June 30, 2021 $ (268) $ (47) $ — $ (1) $ (1) $ (317) Other comprehensive income (loss) before reclassifications (110) 8 27 (3) — (78) Amounts reclassified from other comprehensive loss — 1 — — — 1 Balance at June 30, 2022 (378) (38) 27 (4) (1) (394) Other comprehensive income (loss) before reclassifications 32 (16) 18 — — 34 Amounts reclassified from other comprehensive loss — 2 — 4 — 6 Balance at June 30, 2023 (346) (52) 45 — (1) (354) Other comprehensive income (loss) before reclassifications (32) 2 (22) — — (52) Amounts reclassified from other comprehensive loss — 2 — — — 2 Balance at June 30, 2024 $ (378) $ (48) $ 23 $ — $ (1) $ (404) |
Schedule of Comprehensive Income (Loss) | The components of the changes in the cumulative translation adjustment, derivatives and hedges, minimum pension liability, and marketable securities for the fiscal years ended June 30, 2024, 2023, and 2022 are presented below: Fiscal Year Ended June 30, (Dollars in millions) 2024 2023 2022 Foreign currency translation adjustments: Net investment hedge $ 21 $ (30) $ 121 Long-term inter-company loans 1 12 (37) Translation adjustments (50) 43 (169) Total foreign currency translation adjustments, pretax (28) 25 (85) Tax expense (benefit) 4 (7) 25 Total foreign currency translation adjustments, net of tax $ (32) $ 32 $ (110) Net change in derivatives and hedges: Net (loss) gain recognized during the year, pretax $ (25) $ 25 $ 36 Tax (benefit) expense (3) 7 9 Net change in derivatives and hedges, net of tax $ (22) $ 18 $ 27 Net change in minimum pension liability: Net (loss) gain recognized during the year, pretax $ 8 $ (17) $ 13 Tax expense (benefit) 4 (3) 4 Net change in minimum pension liability, net of tax $ 4 $ (14) $ 9 Net change in marketable securities: Net gain (loss) recognized during the year, pretax $ — $ 5 $ (3) Tax expense — 1 — Net change in marketable securities, net of tax $ — $ 4 $ (3) For the fiscal years ended June 30, 2024, 2023, and 2022, the changes in accumulated other comprehensive loss, net of tax by component are as follows: (Dollars in millions) Foreign Currency Translation Adjustment Pension Liability Adjustments Derivatives and Hedges Marketable Securities Other Total Balance at June 30, 2021 $ (268) $ (47) $ — $ (1) $ (1) $ (317) Other comprehensive income (loss) before reclassifications (110) 8 27 (3) — (78) Amounts reclassified from other comprehensive loss — 1 — — — 1 Balance at June 30, 2022 (378) (38) 27 (4) (1) (394) Other comprehensive income (loss) before reclassifications 32 (16) 18 — — 34 Amounts reclassified from other comprehensive loss — 2 — 4 — 6 Balance at June 30, 2023 (346) (52) 45 — (1) (354) Other comprehensive income (loss) before reclassifications (32) 2 (22) — — (52) Amounts reclassified from other comprehensive loss — 2 — — — 2 Balance at June 30, 2024 $ (378) $ (48) $ 23 $ — $ (1) $ (404) |
Equity Based Compensation (Tabl
Equity Based Compensation (Tables) | 12 Months Ended |
Jun. 30, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | The weighted average of assumptions used in estimating the fair value of stock options granted during each year were as follows: Fiscal Year Ended June 30, 2024 2023 2022 Expected volatility 52% 37% 37% Expected life (in years) 4.0 4.3 3.7 Risk-free interest rate 4.4% 3.2% 0.7% Dividend yield None None None |
Disclosure of Share-based Compensation Arrangements by Share-based Payment Award [Table Text Block] | The following table summarizes stock option activity and shares subject to outstanding options for the fiscal year ended June 30, 2024 : Weighted Average Exercise Price Number of Shares Weighted Average Contractual Term Aggregate Intrinsic Value Outstanding as of June 30, 2023 $ 71.19 1,008,747 6.22 $ 2,225,819 Granted 47.39 473,432 — — Exercised 47.02 193,508 — 1,862,358 Forfeited 97.23 33,550 — — Expired / Canceled 72.90 67,624 — — Outstanding as of June 30, 2024 64.81 1,187,497 5.7 8,655,393 Vested/expected to vest as of June 30, 2024 64.81 1,187,497 5.7 8,655,393 Vested and exercisable as of June 30, 2024 $ 65.78 521,898 3.21 $ 4,499,875 |
Schedule of Nonvested Restricted Stock Units Activity [Table Text Block] | The following table summarizes activity in unvested time-based restricted share units for the fiscal year ended June 30, 2024: Time-Based Stock Units Weighted Average Grant-Date Fair Value Unvested as of June 30, 2023 1,026,729 $ 83.07 Granted 1,611,350 47.77 Vested 220,139 87.79 Cancelled/forfeited 263,348 65.22 Unvested as of June 30, 2024 2,154,592 56.14 |
Schedule of Nonvested Performance-based Units Activity [Table Text Block] | Performance Share Units The following table summarizes activity in unvested performance share units for the fiscal year ended June 30, 2024: Performance Share Units Weighted Average Grant-Date Fair Value Target Number Unvested as of June 30, 2023 273,985 $ 99.58 Target Number Granted 46,899 — Target Number Vested 84,342 88.35 Target Number Cancelled/forfeited 76,554 105.33 Target Number Unvested as of June 30, 2024 159,988 $ 103.17 |
Fair Value Measurements, Nonrecurring | Valuation of RTSR Units The fair value of each RTSR unit is determined using the Monte Carlo pricing model because the number of shares to be awarded is subject to a market condition. The Monte Carlo simulation is a generally accepted statistical technique used to simulate a range of possible future outcomes. Because the valuation model considers a range of possible outcomes, compensation cost is recognized regardless of whether the market condition is actually satisfied. The assumptions used in estimating the fair value of the RTSR units granted during each year were as follows: Fiscal Year Ended June 30, 2024 2023 Expected volatility 52 % - 57% 41 % - 47% Expected life (in years) 2.5 - 3.0 2.4 - 2.9 Risk-free interest rates 4.0 % - 5.0% 3.0 % - 4.6% Dividend yield None None |
Nonvested Restricted Stock Shares Activity | The following table summarizes activity in unvested RTSR units for the fiscal year ended June 30, 2024. RTSR Units Weighted Average Grant-Date Fair Value Target Number Unvested as of June 30, 2023 342,546 $ 82.36 Target Number Granted 326,062 39.52 Target Number Vested 190 63.13 Target Number Cancelled/forfeited 81,389 63.42 Target Number Unvested as of June 30, 2024 587,029 $ 51.98 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Jun. 30, 2024 | |
Leases [Abstract] | |
Schedule of Operating and Financing Leases Presented in Balance Sheet | Supplemental information concerning the leases recorded in the Company’s consolidated balance sheet as of June 30, 2024 is detailed in the following table: (Dollars in millions) Line item in the consolidated balance sheet Balance at Balance at Right-of-use assets: Finance leases Property, plant, and equipment, net $ 252 $ 274 Operating leases Other long-term assets 77 59 Current lease liabilities: Finance leases Current portion of long-term obligations and other short-term borrowings 20 18 Operating leases Other accrued liabilities 13 11 Non-current lease liabilities: Finance leases Long-term obligations, less current portion 312 323 Operating leases Other liabilities $ 70 $ 55 |
Lease, Cost | The components of the net lease costs for the fiscal years ended June 30, 2024 and 2023 reflected in the Company’s consolidated statement of operations were as follows: (Dollars in millions) Fiscal Year Ended Fiscal Year Ended Financing lease costs: Amortization of right-of-use assets $ 30 $ 21 Interest on lease liabilities 21 17 Total 51 38 Operating lease costs 27 35 Variable lease costs 16 10 Total lease costs $ 94 $ 83 The short-term lease cost amounted to $9 million, $10 million and $8 million during the fiscal year ended June 30, 2024, 2023 and 2022, respectively. The weighted average remaining lease term and weighted average discount rate related to the Company’s right-of-use assets and lease liabilities as of June 30, 2024 are as follows: Weighted average remaining lease term (years): Finance leases 16.1 Operating leases 9 Weighted average discount rate: Finance leases 6.2 % Operating leases 4.6 % |
Schedule of Cash Flow, Supplemental Disclosures | Supplemental information concerning the cash-flow impact arising from the Company’s leases for the fiscal year ended June 30, 2024 recorded in the Company’s unaudited consolidated statement of cash flows is detailed in the following table (in millions): Fiscal Year Ended Fiscal Year Ended Fiscal Year Ended Cash paid for amounts included in lease liabilities: Financing cash flows used for finance leases $ 19 $ 19 $ 15 Operating cash flows used for finance leases 16 15 11 Operating cash flows used for operating leases 14 16 19 Non-cash transactions: Right-of-use assets obtained in exchange for new finance lease liabilities 57 133 59 Right-of-use assets obtained in exchange for new operating lease liabilities $ 38 $ 1 $ 31 |
Schedule of Maturities of Lease Liabilities | As of June 30, 2024, the Company expects that its future minimum lease payments will become due and payable as follows: (Dollars in millions) Financing Leases Operating Leases Total 2025 $ 37 $ 17 $ 54 2026 39 15 54 2027 37 14 51 2028 34 13 47 2029 34 9 43 Thereafter 337 36 373 Total minimum lease payments 518 104 622 Less: interest 186 21 207 Total lease liabilities $ 332 $ 83 $ 415 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended | |
Jun. 30, 2024 | ||
Segment Reporting [Abstract] | ||
Net Revenue and Segment EBITDA | The following table includes Segment EBITDA for each of the Company’s current reporting segments during the fiscal years ended June 30, 2024, 2023, and 2022: (Dollars in millions) Fiscal Year Ended June 30, 2024 2023 2022 Segment EBITDA reconciled to net (loss) earnings: Biologics $ 272 $ 277 $ 777 Pharma and Consumer Health 597 548 589 Subtotal $ 869 $ 825 $ 1,366 Reconciling items to net (loss) earnings Unallocated costs (1) $ (1,153) $ (559) $ (286) Depreciation and amortization (489) (422) (378) Interest expense, net (254) (186) (123) Income tax benefit (expense) (16) 86 (80) Net (loss) earnings $ (1,043) $ (256) $ 499 (1) Unallocated costs include restructuring and special items, stock-based compensation, gain (loss) on sale of subsidiary, impairment charges, certain other corporate directed costs, and other costs that are not allocated to the segments as follows: (Dollars in millions) Fiscal Year Ended June 30, 2024 2023 2022 Impairment charges and gain/loss on sale of assets (a) $ (29) $ (98) $ (31) Stock-based compensation (68) (35) (54) Restructuring and other special items (b) (178) (98) (55) Pension settlement charges (12) — — Goodwill impairment charges (c) (687) (210) — Gain on sale of subsidiary — — 1 Other (expense) income, net (d) (24) 7 (28) Non-allocated corporate costs, net (155) (125) (119) Total unallocated costs $ (1,153) $ (559) $ (286) (a) Impairment charges and gain/loss on sale of assets for the fiscal year ended June 30, 2024 includes right-of-use asset impairment charges associated with under utilized facilities in our Biologics segment, obsolete equipment that could not be sold or repurposed in our Biologics segment and under utilized suites from a canceled project in our Pharma and Consumer Health segment. For the fiscal year ended June 30, 2023, impairment charges are primarily associated with an idle facility in the Biologics segment and obsolete equipment that could not be sold or repurposed in the Pharma and Consumer Health segment. Further detail is provided below. For the fiscal year ended June 30, 2023, the Company identified an indicator of impairment related to one of its facilities in the Biologics segment given the plans to pause any additional spend on site development due to a lack of demand, leading to a partial impairment charge of $54 million. The Company primarily utilized a market and income approach for real property and a cost approach for personal property to record the partial impairment on its idle facility. Impairment charges are recorded in Other operating expense in the consolidated statements of operations. Also, in the fiscal year ended June 30, 2023, the Company identified an indicator of impairment related to obsolete equipment from a terminated project in the Pharma and Consumer Health segment, leading to a full impairment charge of $18 million. For the fiscal year ended June 30, 2022, impairment charges are primarily due to fixed asset impairment charges associated with dedicated equipment for a product the Company no longer manufactures in its Pharma and Consumer Health segment and obsolete equipment in its Biologics segment. (b) Restructuring and other special items during the fiscal year ended June 30, 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 6, Restructuring Costs to the Consolidated Financial Statements. Restructuring and other special items for the fiscal year ended June 30, 2023 includes (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 fiscal year ended June 30, 2022 include (i) transaction and integration costs primarily associated with the Princeton, Bettera Wellness, Delphi, Hepatic, Acorda, and RheinCell transactions and (ii) unrealized losses on venture capital investments. (c) Goodwill impairment charges during the fiscal year ended June 30, 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. The goodwill impairment charges for the fiscal year ended June 30, 2023 was associated with the Company’s Consumer Health reporting unit. For further details, see Note 4, Goodwill . (d) Refer to Note 15, Other (income) expense, net for details of financing charges and foreign currency translation adjustments recorded within other (income) expense, net. | [1],[2] |
Total Assets for Each Segment and Reconciling in Consolidated Financial Statements | The following table includes total assets for each segment, as well as reconciling items necessary to total the amounts reported in the consolidated balance sheets. Total Assets (Dollars in millions) June 30, 2024 June 30, 2023 Biologics $ 5,326 $ 5,746 Pharma and Consumer Health 4,643 4,867 Corporate and eliminations (216) 164 Total assets $ 9,753 $ 10,777 | |
Capital Expenditures by Segment | Capital Expenditures Fiscal Year Ended June 30, (Dollars in millions) 2024 2023 2022 Biologics $ 171 $ 346 $ 453 Pharma and Consumer Health 164 214 183 Corporate 16 34 30 Total capital expenditures (1) $ 351 $ 594 $ 666 | |
Presentation of revenue and long-lived assets by geographic area | Long Lived Assets The following table presents long-lived assets—consisting of property, plant, and equipment, net of accumulated depreciation—by geographic area: (Dollars in millions) June 30, 2024 June 30, 2023 United States $ 2,625 $ 2,758 Europe 828 765 Other 190 159 Total $ 3,643 $ 3,682 | |
[1]Refer to Note 15, Other (income) expense, net for details of financing charges and foreign currency translation adjustments recorded within other (income) expense, net. |
Supplemental Balance Sheet In_2
Supplemental Balance Sheet Information (Tables) | 12 Months Ended |
Jun. 30, 2024 | |
Balance Sheet Related Disclosures [Abstract] | |
Work-in-Process and Finished Goods Inventories Include Raw Materials, Labor and Overhead | Work-in-process and inventories include raw materials, labor, and overhead. Total inventories consist of the following: (Dollars in millions) June 30, June 30, Raw materials and supplies $ 646 $ 781 Work-in-process 138 186 Total inventories, gross 784 967 Inventory cost adjustment (210) (190) Total inventories $ 574 $ 777 |
Prepaid and Other Assets | Prepaid expenses and other current assets consist of the following: (Dollars in millions) June 30, June 30, Prepaid expenses $ 46 $ 53 Short-term contract assets 585 399 Spare parts supplies 29 24 Prepaid income tax 45 77 Non-U.S. value-added tax 60 38 Other current assets 48 42 Total prepaid expenses and other $ 813 $ 633 |
Property and Equipment | Property, plant, and equipment, net consist of the following: (Dollars in millions) June 30, June 30, Land, buildings, and improvements $ 1,987 $ 1,887 Machinery and equipment 2,538 2,287 Furniture and fixtures 62 61 Construction in progress 971 1,043 Property, plant, and equipment, at cost 5,558 5,278 Accumulated depreciation (1,915) (1,596) Property, plant, and equipment, net $ 3,643 $ 3,682 |
Other Assets Non Current | Other long-term assets consist of the following: (Dollars in millions) June 30, June 30, Operating lease right-of-use-assets $ 77 $ 59 Note receivable 56 53 Corporate-owned life insurance policies 48 41 Venture capital investments 47 36 Interest-rate swap 36 62 Pension assets 13 18 Long-term contract assets 17 18 Other 38 42 Total other long-term assets $ 332 $ 329 |
Other Accrued Liabilities | Other accrued liabilities consist of the following: (Dollars in millions) June 30, June 30, Contract liability $ 250 $ 167 Accrued employee-related expenses 181 160 Accrued expenses 115 134 Operating lease liabilities 13 11 Restructuring accrual 10 19 Accrued interest 37 35 Accrued income tax 16 44 Total other accrued liabilities $ 622 $ 570 |
Basis of Presentation and Sum_3
Basis of Presentation and Summary of Significant Accounting Policies - Additional Information (Detail) - $ / shares | Jun. 30, 2024 | Feb. 05, 2024 | Jun. 30, 2023 |
Common stock, par value (usd per share) | $ 0.01 | $ 0.01 | $ 0.01 |
Basis of Presentation and Sum_4
Basis of Presentation and Summary of Significant Accounting Policies Property and Equipment and Other Definite Lived Intangible Assets (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2022 | |
Depreciation expense | $ 354 | $ 286 | $ 255 |
Interest Costs Capitalized | 10 | 24 | 15 |
Gain (Loss) on Sale of Assets and Asset Impairment Charges | $ (29) | $ (98) | $ (31) |
Segment Reporting, Disclosure of Major Customers | 16% | 10% | 10% |
Minimum [Member] | Software and Software Development Costs | |||
Finite-Lived Intangible Asset, Useful Life | 3 years | ||
Maximum [Member] | Software and Software Development Costs | |||
Finite-Lived Intangible Asset, Useful Life | 5 years | ||
Building And Improvements [Member] | Minimum [Member] | |||
Property, Plant and Equipment, Useful Life | 5 years | ||
Building And Improvements [Member] | Maximum [Member] | |||
Property, Plant and Equipment, Useful Life | 50 years | ||
Machinery and Equipment [Member] | Minimum [Member] | |||
Property, Plant and Equipment, Useful Life | 3 years | ||
Machinery and Equipment [Member] | Maximum [Member] | |||
Property, Plant and Equipment, Useful Life | 10 years | ||
Furniture and Fixtures [Member] | Minimum [Member] | |||
Property, Plant and Equipment, Useful Life | 3 years | ||
Furniture and Fixtures [Member] | Maximum [Member] | |||
Property, Plant and Equipment, Useful Life | 7 years |
Basis of Presentation and Sum_5
Basis of Presentation and Summary of Significant Accounting Policies Research and Development Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2022 | |
Research and Development Expense | $ 17 | $ 18 | $ 23 |
Concentration Risk trade receivables and current contract asset, Percentage | 34% | 20% | |
Segment Reporting, Disclosure of Major Customers | 16% | 10% | 10% |
Basis of Presentation and Sum_6
Basis of Presentation and Summary of Significant Accounting Policies Recent Financial Accounting Standards (Details) $ in Millions | Jun. 30, 2024 USD ($) |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Operating Lease, Liability | $ 83 |
Operating Lease, Liability, Statement of Financial Position [Extensible List] | Other Liabilities |
Revenue Recognition Disaggregat
Revenue Recognition Disaggregation of Revenue by type of activity and reporting segment (Details) - USD ($) | 12 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2022 | |
Disaggregation of Revenue [Line Items] | |||
Net revenue | $ (4,381,000,000) | $ (4,263,000,000) | $ (4,802,000,000) |
Greater Than One Year Member | |||
Disaggregation of Revenue [Line Items] | |||
Revenue, Remaining Performance Obligation, Percentage to be recognized over the next six months | 50% | ||
Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Net revenue | (4,381,000,000) | $ (4,263,000,000) | (4,802,000,000) |
Operating Segments Excluding Intersegment Elimination | |||
Disaggregation of Revenue [Line Items] | |||
Net revenue | (4,383,000,000) | (4,265,000,000) | (4,805,000,000) |
Biologics [Member] | Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Net revenue | (1,952,000,000) | (1,978,000,000) | (2,534,000,000) |
Biologics [Member] | Manufacturing & Commercial Product Supply [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Net revenue | (1,151,000,000) | (450,000,000) | (608,000,000) |
Biologics [Member] | Development Services [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Net revenue | (801,000,000) | (1,528,000,000) | (1,926,000,000) |
PharmaConsumerHealth | Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Net revenue | (2,431,000,000) | (2,287,000,000) | (2,271,000,000) |
PharmaConsumerHealth | Manufacturing & Commercial Product Supply [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Net revenue | (1,577,000,000) | (1,452,000,000) | (1,474,000,000) |
PharmaConsumerHealth | Development Services [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Net revenue | (854,000,000) | (835,000,000) | (797,000,000) |
Total Catalent before inter-segment revenue elimination [Member] | Manufacturing & Commercial Product Supply [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Net revenue | (2,728,000,000) | (1,902,000,000) | (2,082,000,000) |
Total Catalent before inter-segment revenue elimination [Member] | Development Services [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Net revenue | (1,655,000,000) | (2,363,000,000) | (2,723,000,000) |
Total Catalent Segment | Intersegment Eliminations | |||
Disaggregation of Revenue [Line Items] | |||
Net revenue | $ 2,000,000 | $ 2,000,000 | $ 3,000,000 |
Revenue Recognition Disaggreg_2
Revenue Recognition Disaggregation of Revenue by Geography (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2022 | |
Disaggregation of Revenue [Line Items] | |||
Elimination of revenue attributable to multiple locations | $ (157) | $ (117) | $ (115) |
Net revenue | 4,381 | 4,263 | 4,802 |
Europe | |||
Disaggregation of Revenue [Line Items] | |||
Net revenue | 1,359 | 1,257 | 1,506 |
International Other | |||
Disaggregation of Revenue [Line Items] | |||
Net revenue | 356 | 355 | 327 |
United States [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Net revenue | $ 2,823 | $ 2,768 | $ 3,084 |
Revenue Recognition Contractual
Revenue Recognition Contractual Liabilities (Details) - USD ($) | 12 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Revenue Recognition and Deferred Revenue [Abstract] | ||
Contract with Customer, Liability | $ 255,000,000 | $ 180,000,000 |
Contract with Customer, Liability, Revenue Recognized | (145,000,000) | |
Revenue, Remaining Performance Obligation, Amount | $ 618,000,000 | $ 335 |
Revenue Recognition Contractu_2
Revenue Recognition Contractual Assets (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Jun. 30, 2023 |
Text Block [Abstract] | ||
Contract with Customer, Asset | $ 602 | $ 417 |
Revenue from Contract with Cu_2
Revenue from Contract with Customer (Details) - USD ($) | 12 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2022 | |
Disaggregation of Revenue [Line Items] | |||
Net revenue | $ 4,381,000,000 | $ 4,263,000,000 | $ 4,802,000,000 |
Revenue, Remaining Performance Obligation, Amount | 618,000,000 | 335 | |
Development Services [Member] | Biologics [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Net revenue | 801,000,000 | 1,528,000,000 | 1,926,000,000 |
Development Services [Member] | PharmaConsumerHealth | |||
Disaggregation of Revenue [Line Items] | |||
Net revenue | 854,000,000 | 835,000,000 | 797,000,000 |
Manufacturing & Commercial Product Supply [Member] | Biologics [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Net revenue | 1,151,000,000 | 450,000,000 | 608,000,000 |
Manufacturing & Commercial Product Supply [Member] | PharmaConsumerHealth | |||
Disaggregation of Revenue [Line Items] | |||
Net revenue | $ 1,577,000,000 | $ 1,452,000,000 | $ 1,474,000,000 |
Business Combinations Purchase
Business Combinations Purchase Agreement (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||||||||
Oct. 01, 2022 | Oct. 01, 2021 | Aug. 01, 2021 | Feb. 23, 2021 | Apr. 30, 2022 | Oct. 31, 2021 | Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2022 | Feb. 05, 2024 | |
Business Acquisition [Line Items] | ||||||||||
Payment for acquisitions, net of cash acquired | $ 0 | $ (474,000,000) | $ (1,199,000,000) | |||||||
Common stock, par value (usd per share) | $ 0.01 | $ 0.01 | $ 0.01 | |||||||
Goodwill, Acquired During Period | $ 219,000,000 | |||||||||
Customer relationships [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 13 years | 13 years | ||||||||
Core technology [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 11 years | 11 years | ||||||||
3.500% Senior US Denominated Notes Member | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Stated interest rate (percent) | 350% | |||||||||
Bettera Holdings, LLC | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Payment for acquisitions, net of cash acquired | $ (1,000,000,000) | |||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment | 72 | |||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Inventory | $ 31 | |||||||||
Goodwill, Acquired During Period | $ 531 | |||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities | 17 | |||||||||
Bettera Holdings, LLC | Core technology [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 10 years | |||||||||
Bettera Holdings, LLC | Core Technology Bettera | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $ 338 | |||||||||
RheinCell Therapeutics | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Payment for acquisitions, net of cash acquired | $ (26,000,000) | |||||||||
Goodwill, Acquired During Period | 17,000,000 | |||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 14,000,000 | |||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities | $ 1,000,000 | |||||||||
Princeton Cell Therapy | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Payment for acquisitions, net of cash acquired | $ (45,000,000) | |||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment | 22,000,000 | |||||||||
Goodwill, Acquired During Period | 24,000,000 | |||||||||
Vaccine Manufacturing and Innovation Centre | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Payment for acquisitions, net of cash acquired | (134,000,000) | |||||||||
Business Acquisition, Transaction Costs | 9,000,000 | |||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment | 165,000,000 | |||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets | $ 1,000,000 | |||||||||
Blow-Fill-Seal Business, Woodstock | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Business Acquisition, Transaction Costs | $ 8,000,000 | |||||||||
Goodwill, Acquired During Period | $ 54,000,000 | |||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities | $ 2,000,000 | |||||||||
Business Combination, Acquired Receivables, Description | $51 million | |||||||||
Metrics | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Payment for acquisitions, net of cash acquired | $ (474,000,000) | |||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment | $ 195,000,000 | |||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Inventory | 5,000,000 | |||||||||
Goodwill, Acquired During Period | 219,000,000 | |||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 52,000,000 | |||||||||
Metrics | Customer relationships [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $ 52,000,000 | |||||||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 12 years |
Business Combinations Net Asset
Business Combinations Net Assets Acquired (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |||||
Oct. 01, 2022 | Aug. 01, 2021 | Apr. 30, 2022 | Oct. 31, 2021 | Jun. 30, 2024 | Jun. 30, 2023 | Oct. 01, 2021 | |
Net Assets Acquired from Business Combinations | |||||||
Goodwill, Acquired During Period | $ 219,000,000 | ||||||
Notes Receivable Interest Rate | 500% | ||||||
Bettera Holdings, LLC | |||||||
Net Assets Acquired from Business Combinations | |||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment | $ 72 | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Inventory | $ 31 | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities | (17) | ||||||
Goodwill, Acquired During Period | $ 531 | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Cash and Equivalents | 23 | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Receivables | 16 | ||||||
RheinCell Therapeutics | |||||||
Net Assets Acquired from Business Combinations | |||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $ 14,000,000 | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities | (4,000,000) | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities | (1,000,000) | ||||||
Goodwill, Acquired During Period | $ 17,000,000 | ||||||
Princeton Cell Therapy | |||||||
Net Assets Acquired from Business Combinations | |||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment | $ 22,000,000 | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Other Noncurrent Assets | 10,000,000 | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities | (1,000,000) | ||||||
Goodwill, Acquired During Period | 24,000,000 | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Other | 10,000,000 | ||||||
Vaccine Manufacturing and Innovation Centre | |||||||
Net Assets Acquired from Business Combinations | |||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment | 165,000,000 | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities | (18,000,000) | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets | 1,000,000 | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Other | 14,000,000 | ||||||
Business Acquisition, Transaction Costs | $ 9,000,000 | ||||||
Metrics | |||||||
Net Assets Acquired from Business Combinations | |||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment | 195,000,000 | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Inventory | 5,000,000 | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 52,000,000 | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities | (12,000,000) | ||||||
Goodwill, Acquired During Period | 219,000,000 | ||||||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net | 474,000,000 | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Receivables | 15,000,000 | ||||||
Customer relationships [Member] | |||||||
Net Assets Acquired from Business Combinations | |||||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 13 years | 13 years | |||||
Customer relationships [Member] | Metrics | |||||||
Net Assets Acquired from Business Combinations | |||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $ 52,000,000 | ||||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 12 years | ||||||
Product relationships [Member] | |||||||
Net Assets Acquired from Business Combinations | |||||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 8 years | 8 years | |||||
Core technology [Member] | |||||||
Net Assets Acquired from Business Combinations | |||||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 11 years | 11 years | |||||
Core technology [Member] | Bettera Holdings, LLC | |||||||
Net Assets Acquired from Business Combinations | |||||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 10 years | ||||||
Core Technology Bettera | Bettera Holdings, LLC | |||||||
Net Assets Acquired from Business Combinations | |||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 338 | ||||||
Other Intangible Assets [Member] | |||||||
Net Assets Acquired from Business Combinations | |||||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 6 years | 5 years | |||||
Other Intangible Assets [Member] | Bettera Holdings, LLC | |||||||
Net Assets Acquired from Business Combinations | |||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $ 361 |
Business Combinations, Divestit
Business Combinations, Divestitures (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||
Oct. 01, 2021 | Apr. 30, 2022 | Oct. 31, 2021 | Mar. 31, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2022 | Oct. 01, 2022 | |
Business Acquisition [Line Items] | ||||||||
Goodwill, Acquired During Period | $ 219,000,000 | |||||||
Disposal Group, Not Discontinued Operation, Gain (Loss) on Disposal | $ 0 | 0 | $ 1,000,000 | |||||
Payments to Acquire Businesses, Net of Cash Acquired | 0 | 474,000,000 | 1,199,000,000 | |||||
Blow-Fill-Seal Business, Woodstock | ||||||||
Business Acquisition [Line Items] | ||||||||
Proceeds from Divestiture of Businesses and Interests in Affiliates | 300,000,000 | 300,000,000 | ||||||
Business Combination, Acquired Receivables, Gross Contractual Amount | 50,000,000 | |||||||
Business Combination, Acquired Receivable, Fair Value | 47,000,000 | |||||||
Disposal Group, Including Discontinued Operation, Assets | 149,000,000 | |||||||
Goodwill, Acquired During Period | 54,000,000 | |||||||
Disposal Group, Not Discontinued Operation, Gain (Loss) on Disposal | $ 1 | $ 182,000,000 | ||||||
Business Combination, Loan Discount | 3,000,000 | |||||||
Business Acquisition, Transaction Costs | 8,000,000 | |||||||
Business Combination, Working Capital Adjustments | 6,000,000 | |||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities | 2,000,000 | |||||||
Proceeds From Divestiture Of Businesses, Net Cash Proceeds | 284,000,000 | |||||||
Business Combination, Consideration Transferred, Other | 16,000,000 | |||||||
Cash and Noncash Divestiture, Amount of Consideration Received | $ 331,000,000 | $ 331,000,000 | ||||||
Business Combination, Acquired Receivables, Description | $51 million | |||||||
Bettera Holdings, LLC | ||||||||
Business Acquisition [Line Items] | ||||||||
Goodwill, Acquired During Period | $ 531 | |||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities | $ 17 | |||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Receivables | 16 | |||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment | 72 | |||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Inventory | $ 31 | |||||||
Payments to Acquire Businesses, Net of Cash Acquired | $ 1,000,000,000 | |||||||
Vaccine Manufacturing and Innovation Centre | ||||||||
Business Acquisition [Line Items] | ||||||||
Business Acquisition, Transaction Costs | $ 9,000,000 | |||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment | 165,000,000 | |||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets | 1,000,000 | |||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities | 18,000,000 | |||||||
Payments to Acquire Businesses, Net of Cash Acquired | $ 134,000,000 |
Goodwill - Carrying Amount of G
Goodwill - Carrying Amount of Goodwill (Detail) - USD ($) | 12 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2021 | |
Goodwill [Roll Forward] | |||
Beginning balance | $ 3,039,000,000 | $ 3,006,000,000 | |
Goodwill, Acquired During Period | 219,000,000 | ||
Goodwill, Transfers | 0 | ||
Foreign currency translation adjustments | (19,000,000) | 24,000,000 | |
Goodwill, Impairment Loss | 687,000,000 | 210,000,000 | $ 0 |
Ending balance | $ 2,333,000,000 | $ 3,039,000,000 | |
Goodwill Inputs Percentage, Discount Rate Minimum | 900% | 900% | |
Goodwill Inputs Percentage, Discount Rate Maximum | 1,000% | 1,050% | |
Goodwill Inputs Percentage, Long Term Revenue Growth Rate | 350% | 300% | |
Goodwill, Impaired, Accumulated Impairment Loss | $ 897 | ||
Time [Member] | |||
Goodwill [Roll Forward] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 1,187,497 | 1,008,747 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term | 5 years 8 months 12 days | 6 years 2 months 19 days | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Weighted Average Remaining Contractual Term | 3 years 2 months 15 days | ||
Reported Value Measurement [Member] | |||
Goodwill [Roll Forward] | |||
Debt Instrument, Fair Value Disclosure | $ 4,949,000,000 | $ 4,888,000,000 | |
3.125% Senior US Denominated Notes | |||
Goodwill [Roll Forward] | |||
Stated interest rate (percent) | 3.125% | ||
3.125% Senior US Denominated Notes | Level 2 [Member] | Reported Value Measurement [Member] | |||
Goodwill [Roll Forward] | |||
Debt Instrument, Fair Value Disclosure | $ 550,000,000 | 550,000,000 | |
3.500% Senior US Denominated Notes Member | |||
Goodwill [Roll Forward] | |||
Stated interest rate (percent) | 350% | ||
3.500% Senior US Denominated Notes Member | Level 2 [Member] | Reported Value Measurement [Member] | |||
Goodwill [Roll Forward] | |||
Debt Instrument, Fair Value Disclosure | $ 650,000,000 | 650,000,000 | |
Softgel and Oral Technologies [Member] | |||
Goodwill [Roll Forward] | |||
Beginning balance | 1,476,000,000 | 1,440,000,000 | |
Ending balance | 1,476,000,000 | ||
Biologics [Member] | |||
Goodwill [Roll Forward] | |||
Beginning balance | 1,563,000,000 | 1,566,000,000 | |
Goodwill, Acquired During Period | 0 | ||
Goodwill, Transfers | (15,000,000) | ||
Foreign currency translation adjustments | (8,000,000) | 12,000,000 | |
Goodwill, Impairment Loss | 392,000,000 | ||
Ending balance | 1,163,000,000 | 1,563,000,000 | |
PharmaConsumerHealth | |||
Goodwill [Roll Forward] | |||
Goodwill, Acquired During Period | 219,000,000 | ||
Goodwill, Transfers | 15,000,000 | ||
Foreign currency translation adjustments | (11,000,000) | 12,000,000 | |
Goodwill, Impairment Loss | 295,000,000 | $ 210,000,000 | |
Ending balance | $ 1,170,000,000 |
Definite Lived Long-Lived Ass_3
Definite Lived Long-Lived Assets - Other Intangible Assets Subject to Amortization (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Intangibles [Line Items] | ||
Gross Carrying Value | $ 1,818 | $ 1,828 |
Accumulated Amortization | (977) | (848) |
Net Carrying Value | $ 841 | $ 980 |
Core technology [Member] | ||
Intangibles [Line Items] | ||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 11 years | 11 years |
Gross Carrying Value | $ 480 | $ 482 |
Accumulated Amortization | (205) | (164) |
Net Carrying Value | $ 275 | $ 318 |
Customer relationships [Member] | ||
Intangibles [Line Items] | ||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 13 years | 13 years |
Gross Carrying Value | $ 1,076 | $ 1,079 |
Accumulated Amortization | (531) | (451) |
Net Carrying Value | $ 545 | $ 628 |
Product relationships [Member] | ||
Intangibles [Line Items] | ||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 8 years | 8 years |
Gross Carrying Value | $ 242 | $ 243 |
Accumulated Amortization | (223) | (216) |
Net Carrying Value | $ 19 | $ 27 |
Other Intangible Assets [Member] | ||
Intangibles [Line Items] | ||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 6 years | 5 years |
Gross Carrying Value | $ 20 | $ 24 |
Accumulated Amortization | (18) | (17) |
Net Carrying Value | $ 2 | $ 7 |
Definite Lived Long-Lived Ass_4
Definite Lived Long-Lived Assets - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2022 | |
Finite lived intangible assets disclosure [Abstract] | |||
Amortization expense | $ 135,000,000 | $ 136 | $ 123 |
Definite Lived Long-Lived Ass_5
Definite Lived Long-Lived Assets - Future Amortization Expense (Detail) $ in Millions | Jun. 30, 2024 USD ($) |
Finite lived intangible assets disclosure [Abstract] | |
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | $ 133 |
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 125 |
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 109 |
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 102 |
Finite-Lived Intangible Assets, Amortization Expense, Year Five | 98 |
Finite-Lived Intangible Asset, Expected Amortization, after Year Five | 274 |
Finite-Lived Intangible Asset, Expected Amortization. Total | $ 841 |
Restructuring and Other Costs_2
Restructuring and Other Costs (Details) | 12 Months Ended | ||
Jun. 30, 2024 USD ($) employees | Jun. 30, 2023 USD ($) | Jun. 30, 2022 USD ($) | |
Restructuring Cost and Reserve [Line Items] | |||
Payments for Restructuring | $ 35,000,000 | ||
Facility exit and other costs | 13,000,000 | $ 28,000,000 | $ 1,000,000 |
Restructuring Reserve | (10,000,000) | (19,000,000) | |
Restructuring and Related Cost, Incurred Cost | 26,000,000 | 38,000,000 | 9,000,000 |
Restructuring, Settlement and Impairment Provisions | $ 39,000,000 | 66,000,000 | 10,000,000 |
Restructuring and Related Cost, Number of Positions Eliminated | employees | 700 | ||
Restructuring, Incurred Cost, Statement of Income or Comprehensive Income [Extensible Enumeration] | Selling, general, and administrative expenses | ||
Biologics [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Employee-related reorganization | $ 11,000,000 | 41,000,000 | 1,000,000 |
PharmaConsumerHealth | |||
Restructuring Cost and Reserve [Line Items] | |||
Employee-related reorganization | 19,000,000 | 8,000,000 | 5,000,000 |
Corporate and Eliminations [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Employee-related reorganization | $ 9,000,000 | $ 17,000,000 | $ 4,000,000 |
Long-Term Obligations and Oth_2
Long-Term Obligations and Other Short-Term Borrowings - Additional Information (Detail) € in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||
Oct. 23, 2017 USD ($) | Jun. 30, 2024 USD ($) Rate | Jun. 30, 2024 USD ($) Rate | Jun. 30, 2023 USD ($) | Jun. 30, 2022 USD ($) | Jun. 30, 2024 EUR (€) Rate | Dec. 19, 2023 USD ($) | Oct. 18, 2017 | |
Schedule Of Debt [Line Items] | ||||||||
Debt, Current | $ 48,000,000 | $ 48,000,000 | $ 536,000,000 | |||||
Long-term Debt and Finance Lease Obligations | 4,857,000,000 | 4,857,000,000 | 4,313,000,000 | |||||
Debt Instrument, Unused Borrowing Capacity, Amount | 1,100,000,000 | 1,100,000,000 | ||||||
Letters of Credit Outstanding, Amount | 4,000,000 | 4,000,000 | ||||||
Payments to Acquire Businesses, Gross | $ 950,000,000 | |||||||
Installment Payment for Acquisition, Next Twelve Months | 50,000,000 | 50,000,000 | ||||||
Unamortized Debt Issuance Expense | 44,000,000 | 44,000,000 | 39,000,000 | |||||
Amortization of Debt Issuance Costs | $ 13,000,000 | 8,000,000 | $ 7,000,000 | |||||
Sale and Leaseback Transaction, Gain (Loss), Net | $ 15,000,000 | |||||||
Stated Percentage, Draw Outstanding | Rate | 3,000% | 3,000% | 3,000% | |||||
Accrued Liabilities [Member] | ||||||||
Schedule Of Debt [Line Items] | ||||||||
Payments to Acquire Businesses, Gross | $ 200,000,000 | |||||||
Senior Secured Credit Facility [Member] | ||||||||
Schedule Of Debt [Line Items] | ||||||||
Pledge Percentage Of Capital Stock | 100% | |||||||
Pledge Percentage Of Equity Interest | 100% | |||||||
Maximum Percentage Of Voting Stock from non US subsidiary | 65% | |||||||
Revolving Credit Facility - Two [Member] | ||||||||
Schedule Of Debt [Line Items] | ||||||||
Debt and Capital Lease Obligations | $ 0 | $ 0 | 500,000,000 | |||||
Revolving Credit Commitments [Member] | ||||||||
Schedule Of Debt [Line Items] | ||||||||
Debt and Capital Lease Obligations | $ 1,100,000,000 | $ 1,100,000,000 | ||||||
Four Point Seven Five Percent Senior Euro Denominated Notes [Member] | ||||||||
Schedule Of Debt [Line Items] | ||||||||
Stated interest rate (percent) | 4.75% | 4.75% | 4.75% | |||||
U.S. Dollar-denominated 4.875% Senior Notes [Member] | ||||||||
Schedule Of Debt [Line Items] | ||||||||
Stated interest rate (percent) | 4.875% | |||||||
U.S Dollar-denominated 5.00% Senior Notes [Member] | ||||||||
Schedule Of Debt [Line Items] | ||||||||
Debt and Capital Lease Obligations | $ 500,000,000 | $ 500,000,000 | ||||||
Stated interest rate (percent) | 5% | 5% | 5% | |||||
2.375% Senior Euro Denominated Notes [Member] | ||||||||
Schedule Of Debt [Line Items] | ||||||||
Debt and Capital Lease Obligations | € | € 825 | |||||||
Stated interest rate (percent) | 2.375% | 2.375% | 2.375% | |||||
Capital Lease Obligations [Member] | ||||||||
Schedule Of Debt [Line Items] | ||||||||
Debt and Capital Lease Obligations | $ 332,000,000 | $ 332,000,000 | 341,000,000 | |||||
Other Obligations [Member] | ||||||||
Schedule Of Debt [Line Items] | ||||||||
Debt and Capital Lease Obligations | $ 32,000,000 | $ 32,000,000 | 25,000,000 | |||||
3.125% Senior US Denominated Notes | ||||||||
Schedule Of Debt [Line Items] | ||||||||
Stated interest rate (percent) | 3.125% | 3.125% | 3.125% | |||||
Term Loan Three Facility Dollar Denominated [Member] | ||||||||
Schedule Of Debt [Line Items] | ||||||||
Debt and Capital Lease Obligations | $ 1,404,000,000 | $ 1,404,000,000 | 1,418,000,000 | |||||
3.500% Senior US Denominated Notes Member | ||||||||
Schedule Of Debt [Line Items] | ||||||||
Debt and Capital Lease Obligations | $ 650 | $ 650 | ||||||
Stated interest rate (percent) | 350% | 350% | 350% | |||||
Term Loan Four Facility dollar Denominated | ||||||||
Schedule Of Debt [Line Items] | ||||||||
Debt and Capital Lease Obligations | $ 598,000,000 | $ 598,000,000 | $ 600,000,000 | |||||
Stated interest rate (percent) | 200% | 200% | 200% | |||||
Stated Percentage, Quarterly Amortization of Principal | 100% | 100% | 100% | |||||
Term Loan Four Facility dollar Denominated | Minimum [Member] | ||||||||
Schedule Of Debt [Line Items] | ||||||||
Debt Instrument, Interest Rate Terms | 0.50% | |||||||
Term Loan Four Facility dollar Denominated | Secured Overnight Financing Rate (SOFR) | ||||||||
Schedule Of Debt [Line Items] | ||||||||
Stated interest rate (percent) | 300% | 300% | 300% | |||||
Reported Value Measurement [Member] | ||||||||
Schedule Of Debt [Line Items] | ||||||||
Debt and Capital Lease Obligations | $ 4,905,000,000 | $ 4,905,000,000 | 4,849,000,000 | |||||
Debt Instrument, Fair Value Disclosure | 4,949,000,000 | 4,949,000,000 | 4,888,000,000 | |||||
Reported Value Measurement [Member] | Debt Issuance Costs | ||||||||
Schedule Of Debt [Line Items] | ||||||||
Debt and Capital Lease Obligations | 44,000,000 | 44,000,000 | 39,000,000 | |||||
Level 2 [Member] | Reported Value Measurement [Member] | U.S Dollar-denominated 5.00% Senior Notes [Member] | ||||||||
Schedule Of Debt [Line Items] | ||||||||
Debt Instrument, Fair Value Disclosure | 500,000,000 | 500,000,000 | 500,000,000 | |||||
Level 2 [Member] | Reported Value Measurement [Member] | 2.375% Senior Euro Denominated Notes [Member] | ||||||||
Schedule Of Debt [Line Items] | ||||||||
Debt Instrument, Fair Value Disclosure | 883,000,000 | 883,000,000 | 904,000,000 | |||||
Level 2 [Member] | Reported Value Measurement [Member] | 3.125% Senior US Denominated Notes | ||||||||
Schedule Of Debt [Line Items] | ||||||||
Debt Instrument, Fair Value Disclosure | 550,000,000 | 550,000,000 | 550,000,000 | |||||
Level 2 [Member] | Reported Value Measurement [Member] | 3.500% Senior US Denominated Notes Member | ||||||||
Schedule Of Debt [Line Items] | ||||||||
Debt Instrument, Fair Value Disclosure | $ 650,000,000 | $ 650,000,000 | $ 650,000,000 |
Long-Term Obligations and Oth_3
Long-Term Obligations and Other Short-Term Borrowings- Maturities (Details) | Jun. 30, 2024 USD ($) |
Long-term and Short-term Debt [Abstract] | |
Long-term Debt and Capital Lease Obligations, Repayments of Principal in Next Twelve Months | $ 48,000,000 |
Long Term Debt and Capital Lease Obligations Repayments of Principal in Year Two | 49,000,000 |
Long Term Debt and Capital Lease Obligations Repayments of Principal in Year Three | 49,000,000 |
Long Term Debt and Capital Lease Obligations Repayments of Principal in Year Four | 3,350,000,000 |
Long Term Debt and Capital Lease Obligations Repayments of Principal in Year Five | 569,000,000 |
Long Term Debt and Capital Lease Obligations Repayments of Principal After Year Five | 884,000,000 |
Total | $ 4,949,000,000 |
Long-Term Obligations and Oth_4
Long-Term Obligations and Other Short-Term Borrowings Fair Value Measurements of Financial Instruments - Carrying Amounts and Estimated Fair Value of FInancial Instruments (Details) € in Millions | Jun. 30, 2024 USD ($) | Jun. 30, 2024 EUR (€) | Jun. 30, 2023 USD ($) |
Reported Value Measurement [Member] | |||
Fair Value Measurements Of Financial Instruments [Line Items] | |||
Debt Instrument, Fair Value Disclosure | $ 4,949,000,000 | $ 4,888,000,000 | |
Debt and Capital Lease Obligations | 4,905,000,000 | 4,849,000,000 | |
Estimate of Fair Value Measurement [Member] | |||
Fair Value Measurements Of Financial Instruments [Line Items] | |||
Debt Instrument, Fair Value Disclosure | 4,613,000,000 | 4,454,000,000 | |
Debt and Capital Lease Obligations | 4,613,000,000 | 4,454,000,000 | |
U.S Dollar-denominated 5.00% Senior Notes [Member] | |||
Fair Value Measurements Of Financial Instruments [Line Items] | |||
Debt and Capital Lease Obligations | 500,000,000 | ||
U.S Dollar-denominated 5.00% Senior Notes [Member] | Level 2 [Member] | Reported Value Measurement [Member] | |||
Fair Value Measurements Of Financial Instruments [Line Items] | |||
Debt Instrument, Fair Value Disclosure | 500,000,000 | 500,000,000 | |
U.S Dollar-denominated 5.00% Senior Notes [Member] | Level 2 [Member] | Estimate of Fair Value Measurement [Member] | |||
Fair Value Measurements Of Financial Instruments [Line Items] | |||
Debt Instrument, Fair Value Disclosure | 498,000,000 | 482,000,000 | |
2.375% Senior Euro Denominated Notes [Member] | |||
Fair Value Measurements Of Financial Instruments [Line Items] | |||
Debt and Capital Lease Obligations | € | € 825 | ||
2.375% Senior Euro Denominated Notes [Member] | Level 2 [Member] | Reported Value Measurement [Member] | |||
Fair Value Measurements Of Financial Instruments [Line Items] | |||
Debt Instrument, Fair Value Disclosure | 883,000,000 | 904,000,000 | |
2.375% Senior Euro Denominated Notes [Member] | Level 2 [Member] | Estimate of Fair Value Measurement [Member] | |||
Fair Value Measurements Of Financial Instruments [Line Items] | |||
Debt Instrument, Fair Value Disclosure | 849,000,000 | 784,000,000 | |
3.125% Senior US Denominated Notes | Level 2 [Member] | Reported Value Measurement [Member] | |||
Fair Value Measurements Of Financial Instruments [Line Items] | |||
Debt Instrument, Fair Value Disclosure | 550,000,000 | 550,000,000 | |
3.125% Senior US Denominated Notes | Level 2 [Member] | Estimate of Fair Value Measurement [Member] | |||
Fair Value Measurements Of Financial Instruments [Line Items] | |||
Debt Instrument, Fair Value Disclosure | 532,000,000 | 481,000,000 | |
Senior Secured Credit Facilities & Other [Member] | Level 2 [Member] | Reported Value Measurement [Member] | |||
Fair Value Measurements Of Financial Instruments [Line Items] | |||
Debt Instrument, Fair Value Disclosure | 2,366,000,000 | 2,284,000,000 | |
Senior Secured Credit Facilities & Other [Member] | Level 2 [Member] | Estimate of Fair Value Measurement [Member] | |||
Fair Value Measurements Of Financial Instruments [Line Items] | |||
Debt Instrument, Fair Value Disclosure | 2,107,000,000 | 2,141,000,000 | |
Debt Issuance Costs | Reported Value Measurement [Member] | |||
Fair Value Measurements Of Financial Instruments [Line Items] | |||
Debt and Capital Lease Obligations | 44,000,000 | 39,000,000 | |
Debt Issuance Costs | Estimate of Fair Value Measurement [Member] | |||
Fair Value Measurements Of Financial Instruments [Line Items] | |||
Debt and Capital Lease Obligations | 0 | 0 | |
3.500% Senior US Denominated Notes Member | |||
Fair Value Measurements Of Financial Instruments [Line Items] | |||
Debt and Capital Lease Obligations | 650 | ||
3.500% Senior US Denominated Notes Member | Level 2 [Member] | Reported Value Measurement [Member] | |||
Fair Value Measurements Of Financial Instruments [Line Items] | |||
Debt Instrument, Fair Value Disclosure | 650,000,000 | 650,000,000 | |
3.500% Senior US Denominated Notes Member | Level 2 [Member] | Estimate of Fair Value Measurement [Member] | |||
Fair Value Measurements Of Financial Instruments [Line Items] | |||
Debt Instrument, Fair Value Disclosure | $ 627,000,000 | ||
3.500% Senior US Denominated Notes | Level 2 [Member] | Reported Value Measurement [Member] | |||
Fair Value Measurements Of Financial Instruments [Line Items] | |||
Debt Instrument, Fair Value Disclosure | 650,000,000 | ||
3.500% Senior US Denominated Notes | Level 2 [Member] | Estimate of Fair Value Measurement [Member] | |||
Fair Value Measurements Of Financial Instruments [Line Items] | |||
Debt Instrument, Fair Value Disclosure | $ 566,000,000 |
Long-Term Obligations and Oth_5
Long-Term Obligations and Other Short-Term Borrowings Interest Rate (Details) - USD ($) | 12 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Debt Instrument [Line Items] | ||
Long-term Debt and Capital Lease Obligations, Repayments of Principal in Next Twelve Months | $ 48,000,000 | |
Long Term Debt and Capital Lease Obligations Repayments of Principal in Year Two | 49,000,000 | |
Long Term Debt and Capital Lease Obligations Repayments of Principal in Year Three | 49,000,000 | |
Long Term Debt and Capital Lease Obligations Repayments of Principal in Year Four | 3,350,000,000 | |
Long Term Debt and Capital Lease Obligations Repayments of Principal in Year Five | 569,000,000 | |
Long Term Debt and Capital Lease Obligations Repayments of Principal After Year Five | $ 884,000,000 | |
Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | Incremental Term Loan | One Month | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Basis Spread on Variable Rate | 11.48% | |
Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | Incremental Term Loan | Three Month | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Basis Spread on Variable Rate | 26.161% | |
Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | Incremental Term Loan | Six Month | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Basis Spread on Variable Rate | 42.826% | |
Term Loan Three Facility Dollar Denominated [Member] | ||
Debt Instrument [Line Items] | ||
Debt and Capital Lease Obligations | $ 1,404,000,000 | $ 1,418,000,000 |
Term Loan Three Facility Dollar Denominated [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Basis Spread on Variable Rate | 1.75% | |
Term Loan Three Facility Dollar Denominated [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Basis Spread on Variable Rate | 2.25% | |
Revolving Credit Facility - Two [Member] | ||
Debt Instrument [Line Items] | ||
Debt and Capital Lease Obligations | $ 0 | $ 500,000,000 |
Revolving Credit Commitments [Member] | ||
Debt Instrument [Line Items] | ||
Debt and Capital Lease Obligations | $ 1,100,000,000 | |
Revolving Credit Commitments [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Basis Spread on Variable Rate | 0.75% | |
Revolving Credit Commitments [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Basis Spread on Variable Rate | 1.25% | |
Revolving Credit Commitments [Member] | Secured Overnight Financing Rate (SOFR) | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Basis Spread on Variable Rate | 10% |
Earnings Per Share Calculations
Earnings Per Share Calculations of Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2022 | |
Earnings Per Share [Abstract] | |||
Net earnings | $ (1,043) | $ (256) | $ 499 |
Participating Securities, Distributed and Undistributed (Earnings) Loss, Basic | 0 | 0 | (16) |
Net Income (Loss) Available to Common Stockholders, Basic | $ (1,043) | $ (256) | $ 483 |
Weighted Average Number of Shares Outstanding, Basic | 181,000,000 | 181,000,000 | 176,000,000 |
Dilutive Securities, Effect on Basic Earnings Per Share, Dilutive Convertible Securities | 0 | 0 | 2,000,000 |
Weighted Average Number of Shares Outstanding, Diluted | 181,000,000 | 181,000,000 | 178,000,000 |
Earnings Per Share, Basic | $ (5.76) | $ (1.42) | $ 2.74 |
Earnings Per Share, Diluted | $ (5.76) | $ (1.42) | $ 2.73 |
Text Block [Abstract] | |||
Weighted Average Number of Shares Outstanding, Basic | 181,000,000 | 181,000,000 | 176,000,000 |
Weighted Average Number of Shares Outstanding, Diluted | 181,000,000 | 181,000,000 | 178,000,000 |
Earnings Per Share Earnings Per
Earnings Per Share Earnings Per Share - Additional Details (Details) - shares shares in Millions | 12 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2022 | |
Series A Preferred Stock | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 0 | 0 | 3 |
Derivative Instruments and He_3
Derivative Instruments and Hedging Activities - Additional Information (Detail) - USD ($) | 9 Months Ended | 12 Months Ended | |||
Mar. 31, 2024 | Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2022 | May 17, 2019 | |
Derivative [Line Items] | |||||
Derivatives used in Net Investment Hedge, Increase (Decrease), Gross of Tax | $ 21,000,000 | $ (30,000,000) | |||
Net accumulated gain related to investment hedges | 119,000,000 | ||||
Derivative, Gain (Loss) on Derivative, Net | 2,000,000 | ||||
Embedded Derivative, Estimate of Embedded Derivative Liability | $ 40,000,000 | ||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Purchases, Sales, Issues, Settlements | $ 1 | ||||
Federal | 0 | (1,000,000) | $ (8,000,000) | ||
State and local | (5,000,000) | (1,000,000) | 14,000,000 | ||
Non-U.S. | 48,000,000 | $ 43,000,000 | $ 66,000,000 | ||
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), after Reclassification, before Tax | $ 26 | ||||
U.S. Denominated Term Loan [Member] | |||||
Derivative [Line Items] | |||||
Debt Instrument, Interest Rate, Effective Percentage | 0.9431% | 0.9985% | |||
Total Debt, U.S Denominated Term Loan | $ 500,000,000 |
Fair Value Measures and Discl_3
Fair Value Measures and Disclosures (Details) - USD ($) | Jun. 30, 2024 | Jun. 30, 2023 |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Interest Rate Cash Flow Hedge Asset at Fair Value | $ 36,000,000 | $ 62,000,000 |
Trading Securities at Fair Value | 1,000,000 | 1,000,000 |
Level 1 [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Interest Rate Cash Flow Hedge Asset at Fair Value | 0 | 0 |
Trading Securities at Fair Value | 1,000,000 | 1,000,000 |
Level 2 [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Interest Rate Cash Flow Hedge Asset at Fair Value | 36,000,000 | 62,000,000 |
Trading Securities at Fair Value | 0 | |
Level 3 [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Interest Rate Cash Flow Hedge Asset at Fair Value | 0 | |
Trading Securities at Fair Value | $ 0 | $ 0 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 12 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Income Tax Contingency [Line Items] | ||||
Undistributed Earnings of Foreign Subsidiaries | $ 568,000,000 | |||
Deferred Tax Assets, Valuation Allowance | 315,000,000 | $ 159,000,000 | ||
Unrecognized Tax Benefits | 4,000,000 | 4,000,000 | $ 5,000,000 | $ 5,000,000 |
Unrecognized Tax Benefits, Interest on Income Taxes Accrued | 0 | 0 | $ 1,000,000 | |
Deferred Tax Assets, State Taxes | 37 | |||
Deferred Tax Assets, Gross | 546,000,000 | $ 469,000,000 | ||
Deferred Tax Assets, Federal Taxes | 97 | |||
Deferred Tax Assets, International Tax Asset | 183 | |||
International Deferred Tax Asset [Domain] | ||||
Income Tax Contingency [Line Items] | ||||
Deferred Tax Assets, Valuation Allowance | 148 | |||
State Net Deferred Tax Asset [Domain] | ||||
Income Tax Contingency [Line Items] | ||||
Deferred Tax Assets, Valuation Allowance | 50 | |||
U.S. Federal Deferred Tax Asset [Domain] | ||||
Income Tax Contingency [Line Items] | ||||
Deferred Tax Assets, Valuation Allowance | 117 | |||
Domestic Tax Authority [Member] | ||||
Income Tax Contingency [Line Items] | ||||
Operating Loss Carryforwards | 546,000,000 | |||
Operating Loss Carryforwards, Subject to Limitations, Section 382 | 225,000,000 | |||
Operating Loss Carryforwards, Indefinite Life | 493,000,000 | |||
State and Local Jurisdiction [Member] | ||||
Income Tax Contingency [Line Items] | ||||
Operating Loss Carryforwards | $ 461,000,000 | |||
Operating Loss Carryforwards, Carry Forward Period | 20 years | |||
Foreign Tax Authority [Member] | ||||
Income Tax Contingency [Line Items] | ||||
Operating Loss Carryforwards | $ 364,000,000 | |||
Operating Loss Carryforwards, Carry Forward Period | 3 years |
Income Taxes Schedule of Income
Income Taxes Schedule of Income before Tax Domestic and Foreign (Details) - USD ($) | 12 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2022 | |
Income Tax Disclosure [Abstract] | |||
U.S. operations | $ (1,158,000,000) | $ (410,000,000) | $ 224,000,000 |
Non-U.S. operations | 131,000,000 | 68,000,000 | 355,000,000 |
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | $ (1,027,000,000) | $ (342,000,000) | $ 579,000,000 |
Income Taxes-Components of Inco
Income Taxes-Components of Income Tax Expense (Details) - USD ($) | 12 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2022 | |
Current Income Tax Expense (Benefit), Continuing Operations [Abstract] | |||
Federal | $ 0 | $ (1,000,000) | $ (8,000,000) |
State and local | (5,000,000) | (1,000,000) | 14,000,000 |
Non-U.S. | 48,000,000 | 43,000,000 | 66,000,000 |
Total current | 43,000,000 | 41,000,000 | 72,000,000 |
Deferred: | |||
Federal | (15,000,000) | (99,000,000) | 6,000,000 |
State and local | (11,000,000) | (4,000,000) | (5,000,000) |
Non-U.S. | (1,000,000) | (24,000,000) | 7,000,000 |
Total deferred | (27,000,000) | (127,000,000) | 8,000,000 |
Total provision | $ 16,000,000 | $ (86,000,000) | $ 80,000,000 |
Income Taxes-Income Tax Reconci
Income Taxes-Income Tax Reconciliation (Details) - USD ($) | 12 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2022 | |
Income Tax Disclosure [Abstract] | |||
Provision at U.S. federal statutory tax rate | $ (216,000,000) | $ (72,000,000) | $ 122,000,000 |
State and local income taxes | (44,000,000) | (13,000,000) | 10,000,000 |
Foreign tax rate differential | (7,000,000) | (5,000,000) | (28,000,000) |
Effective Income Tax Rate Reconciliation, Global intangible low tax income | 11,000,000 | 2,000,000 | 6,000,000 |
Permanent items | 80,000,000 | 9,000,000 | 0 |
Unrecognized tax positions | 0 | (1,000,000) | 1,000,000 |
Tax valuation allowance | 160,000,000 | 5,000,000 | 94,000,000 |
Effective Income Tax Rate Reconciliation, Tax Credit, Foreign, Amount | 1,000,000 | 30,000,000 | 43,000,000 |
Withholding Tax and other foreign taxes | 3,000,000 | 1,000,000 | 1,000,000 |
Change in tax rate | 1,000,000 | 18,000,000 | 1,000,000 |
Effective Income Tax Rate Reconciliation, Tax Credit, Research, Amount | (4,000,000) | (3,000,000) | (2,000,000) |
Effective Tax Reconciliation, Benefit from Swiss Tax Reform | 0 | 0 | 83,000,000 |
Other | 6,000,000 | (1,000,000) | (1,000,000) |
Total provision | $ 16,000,000 | $ (86,000,000) | $ 80,000,000 |
Income Taxes-Deferred Tax Asset
Income Taxes-Deferred Tax Assets (Details) - USD ($) | Jun. 30, 2024 | Jun. 30, 2023 |
Deferred income tax assets: | ||
Accrued liabilities | $ 70,000,000 | $ 57,000,000 |
Equity compensation | 18,000,000 | 13,000,000 |
Loss and tax credit carryforwards | 293,000,000 | 287,000,000 |
Foreign currency | 3,000,000 | 3,000,000 |
Pension | 18,000,000 | 19,000,000 |
Property-related | 101,000,000 | 50,000,000 |
Intangibles | 6,000,000 | |
Deferred Income Tax, Operating Lease, Liabilities | (37,000,000) | (38,000,000) |
Euro Denominated Debt | 0 | 1,000,000 |
Other | 0 | 1,000,000 |
Total deferred income tax assets | 546,000,000 | 469,000,000 |
Valuation allowance | (315,000,000) | (159,000,000) |
Deferred Tax Assets, Net of Valuation Allowance | 231,000,000 | 310,000,000 |
Deferred income tax liabilities: | ||
Foreign currency | (4,000,000) | 0 |
Property-related | (205,000,000) | (247,000,000) |
Goodwill and other intangibles | 0 | (71,000,000) |
Non-current deferred tax liability | (2,000,000) | |
Deferred Income Tax, Right-of-Use Asset | (16,000,000) | (13,000,000) |
Other | (2,000,000) | 0 |
Total deferred income tax liabilities | (229,000,000) | (331,000,000) |
Deferred Tax Liabilities, Net | $ 2,000,000 | $ 21,000,000 |
Income Taxes-Balance Sheet (Det
Income Taxes-Balance Sheet (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Jun. 30, 2023 |
Income Tax Disclosure [Abstract] | ||
Deferred Income Tax Assets, Net | $ 7 | $ 55 |
Deferred Tax Liabilities, Net | 2 | 21 |
Deferred Income Tax Liabilities, Net | $ (5) | $ (76) |
Income Taxes-Unrecognized Tax B
Income Taxes-Unrecognized Tax Benefits (Details) - USD ($) | 12 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2022 | |
Reconciliation of Unrecognized Tax Benefits [Roll Forward] | |||
Beginning Balance | $ 4,000,000 | $ 5,000,000 | $ 5,000,000 |
Additions based on tax positions related to the current year | 2,000,000 | ||
Additions for tax positions of prior years | (1,000,000) | (1,000,000) | (1,000,000) |
Reductions for tax positions of prior years | 1,000,000 | 1,000,000 | |
Settlements | (1,000,000) | (1,000,000) | |
Unrecognized Tax Benefits, Reduction Resulting from Lapse of Applicable Statute of Limitations | (1,000,000) | (1,000,000) | |
Ending Balance | $ 4,000,000 | $ 4,000,000 | $ 5,000,000 |
Employee Retirement Benefit P_3
Employee Retirement Benefit Plans-Additional Information (Details) - USD ($) | 12 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Multiemployer Plans, Estimated Annual Cash Contribution | $ 2,000,000 | |
Defined Benefit Plan, Benefit Obligation, Payment for Settlement | 3 | |
Lump Sum Payment | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Defined Benefit Plan, Plan Assets, Payment for Settlement | 7 | |
Fixed Annuity | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Defined Benefit Plan, Plan Assets, Payment for Settlement | $ 21 | |
Eberbach Pension Promissory Note or Loan [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Stated interest rate (percent) | 5% | |
Retirement Benefits [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Multiemployer Plan, Pension, Significant, Future Employer Contribution, Amount | $ 44,000,000 | $ 38,000,000 |
Actual Asset Allocation (percent) | 100% | 100% |
Target Asset Allocation (percent) | 100% | 100% |
Actual Asset Allocation | $ 168,000,000 | $ 202,000,000 |
Defined Benefit Plan, Plan Assets, Payment for Settlement | $ 36,000,000 | $ 4,000,000 |
Retirement Benefits [Member] | Equity Securities [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Actual Asset Allocation (percent) | 2.90% | 2.90% |
Target Asset Allocation (percent) | 2.90% | 2.90% |
Actual Asset Allocation | $ 5,000,000 | $ 6,000,000 |
Retirement Benefits [Member] | Cash [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Actual Asset Allocation (percent) | 1% | 4.50% |
Target Asset Allocation (percent) | 1% | 4.50% |
Actual Asset Allocation | $ 2,000,000 | $ 9,000,000 |
Employee Retirement Benefit P_4
Employee Retirement Benefit Plans-Accumulated Benefit Obligation (Details) - USD ($) $ in Millions | 12 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Employer contributions between measurement date and reporting date | ||
Fair value of plan assets at beginning of year | $ 202 | |
Fair value of plan assets at end of year | 168 | $ 202 |
Retirement Benefits [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Amortization of Gain (Loss) | (2) | (1) |
Accumulated Benefit Obligation | 206 | 242 |
Change in Benefit Obligation | ||
Benefit obligation at beginning of year | 246 | 268 |
Company service cost | 3 | 3 |
Interest cost | 11 | 9 |
Defined Benefit Plan, Benefit Obligation, Contributions by Plan Participant | 1 | 1 |
Settlements | (36) | (4) |
Defined Benefit Plan, Benefit Obligation, Benefits Paid | 11 | 10 |
Actuarial (gain)/loss | 1 | (28) |
Exchange rate gain/(loss) | (4) | 7 |
Benefit obligation at end of year | 211 | 246 |
Employer contributions between measurement date and reporting date | ||
Fair value of plan assets at beginning of year | 202 | 240 |
Actual return on plan assets | 3 | (38) |
Company contributions | 11 | 7 |
Defined Benefit Plan, Plan Assets, Contributions by Plan Participant | 1 | 1 |
Settlements | (36) | (4) |
Defined Benefit Plan, Plan Assets, Benefits Paid | (11) | (10) |
Exchange rate gain/(loss) | (2) | 6 |
Fair value of plan assets at end of year | 168 | 202 |
Funded status at end of year | (43) | (44) |
Net Pension assets (liabilities) | (43) | (44) |
Defined Benefit Plan, Benefit Obligation, Contributions by Plan Participant | 1 | 1 |
Other Post-Retirement Benefits [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Amortization of Gain (Loss) | 0 | 0 |
Accumulated Benefit Obligation | 1 | 2 |
Change in Benefit Obligation | ||
Benefit obligation at beginning of year | 2 | |
Company service cost | 0 | 0 |
Interest cost | 0 | 0 |
Defined Benefit Plan, Benefit Obligation, Contributions by Plan Participant | 0 | 0 |
Settlements | 0 | 0 |
Defined Benefit Plan, Benefit Obligation, Benefits Paid | 0 | 0 |
Actuarial (gain)/loss | 0 | 0 |
Exchange rate gain/(loss) | 0 | 0 |
Benefit obligation at end of year | 2 | 2 |
Employer contributions between measurement date and reporting date | ||
Fair value of plan assets at beginning of year | 0 | |
Actual return on plan assets | 0 | 0 |
Company contributions | 0 | 0 |
Defined Benefit Plan, Plan Assets, Contributions by Plan Participant | 0 | 0 |
Settlements | 0 | 0 |
Defined Benefit Plan, Plan Assets, Benefits Paid | 0 | 0 |
Exchange rate gain/(loss) | 0 | 0 |
Fair value of plan assets at end of year | 0 | 0 |
Funded status at end of year | (1) | (2) |
Net Pension assets (liabilities) | (1) | (2) |
Defined Benefit Plan, Benefit Obligation, Contributions by Plan Participant | $ 0 | $ 0 |
Employee Retirement Benefit P_5
Employee Retirement Benefit Plans-Balance Sheet (Details) - USD ($) $ in Millions | 12 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | ||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Interest Cost, Statement of Income or Comprehensive Income [Extensible Enumeration] | Pension liability | Pension liability |
Defined Benefit Plan, Net Periodic Benefit (Cost) Credit, Expected Return (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Pension liability | Pension liability |
Defined Benefit Plan, Net Periodic Benefit (Cost) Credit, Amortization of Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Pension liability | Pension liability |
Retirement Benefits [Member] | ||
Amounts Recognized in Statement of Financial Position | ||
Noncurrent assets | $ 13 | $ 18 |
Current liabilities | (1) | (1) |
Noncurrent liabilities | (55) | (61) |
Funded status at end of year | (43) | (44) |
Amounts Recognized in Accumulated Other Comprehensive Income | ||
Prior service cost | (1) | (1) |
Net (gain)/loss | 58 | 66 |
Total accumulated other comprehensive income at the end of the year | 57 | 65 |
Additional Information for Plan with ABO in Excess of Plan Assets | ||
Projected benefit obligation | 93 | 129 |
Accumulated benefit obligation | 89 | 126 |
Fair value of plan assets | 37 | 68 |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | ||
Service cost | 3 | 3 |
Interest cost | 11 | 9 |
Defined Benefit Plan, Expected Return (Loss) on Plan Assets | 9 | 9 |
Defined Benefit Plan, Amortization of Gain (Loss) | (2) | (1) |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Settlement and Curtailment | 12 | 1 |
Net periodic benefit cost | 19 | 5 |
Other Post-Retirement Benefits [Member] | ||
Amounts Recognized in Statement of Financial Position | ||
Noncurrent assets | 0 | 0 |
Current liabilities | 0 | 0 |
Noncurrent liabilities | (1) | (2) |
Funded status at end of year | (1) | (2) |
Amounts Recognized in Accumulated Other Comprehensive Income | ||
Prior service cost | 0 | 0 |
Net (gain)/loss | (1) | (1) |
Total accumulated other comprehensive income at the end of the year | (1) | (1) |
Additional Information for Plan with ABO in Excess of Plan Assets | ||
Projected benefit obligation | 1 | 2 |
Accumulated benefit obligation | 1 | 2 |
Fair value of plan assets | 0 | 0 |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | ||
Service cost | 0 | 0 |
Interest cost | 0 | 0 |
Defined Benefit Plan, Expected Return (Loss) on Plan Assets | 0 | 0 |
Defined Benefit Plan, Amortization of Gain (Loss) | 0 | 0 |
Net periodic benefit cost | $ 0 | $ 0 |
Employee Retirement Benefit P_6
Employee Retirement Benefit Plans-AOCI (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2022 | |
Defined Benefit Plan, Amounts Recognized in Other Comprehensive Income (Loss) [Abstract] | |||
Net (gain)/loss arising during the year | $ (8) | $ 17 | $ (13) |
Retirement Benefits [Member] | |||
Defined Benefit Plan, Amounts Recognized in Other Comprehensive Income (Loss) [Abstract] | |||
Net (gain)/loss arising during the year | 6 | 17 | |
Exchange rate gain/(loss) recognized during the year | (14) | 0 | |
Total minimum pension liability, pretax | (8) | 17 | |
Other Comprehensive (Income) Loss, Defined Benefit Plan, Prior Service Cost (Credit), after Tax | 11 | 22 | |
Estimated Amounts to be Amortized from Accumulated Other Comprehensive Income into Net Periodic Benefit Cost | |||
Net (gain)/loss | $ 2 | $ 2 | |
Financial Assumptions Used to Determine Benefit Obligations at the Balance Sheet Date | |||
Discount rate (percent) | 4.30% | 4.30% | |
Rate of compensation increases (percent) | 2.70% | 2.70% | |
Financial Assumptions Used to Determine Net Periodic Benefit Cost for Financial Year | |||
Discount rate (percent) | 4.30% | 3.60% | |
Rate of compensation increases (percent) | 2.70% | 2.70% | |
Expected long-term rate of return (percent) | 4.30% | 3.90% | |
Expected Future Contributions | |||
Fiscal Year 2020 Expected Future Contributions | $ 4 | $ 8 | |
Other Post-Retirement Benefits [Member] | |||
Defined Benefit Plan, Amounts Recognized in Other Comprehensive Income (Loss) [Abstract] | |||
Net (gain)/loss arising during the year | 0 | 0 | |
Exchange rate gain/(loss) recognized during the year | 0 | 0 | |
Total minimum pension liability, pretax | 0 | 0 | |
Other Comprehensive (Income) Loss, Defined Benefit Plan, Prior Service Cost (Credit), after Tax | 0 | 0 | |
Estimated Amounts to be Amortized from Accumulated Other Comprehensive Income into Net Periodic Benefit Cost | |||
Net (gain)/loss | $ 0 | $ 0 | |
Financial Assumptions Used to Determine Benefit Obligations at the Balance Sheet Date | |||
Discount rate (percent) | 5% | 4.70% | |
Financial Assumptions Used to Determine Net Periodic Benefit Cost for Financial Year | |||
Discount rate (percent) | 4.70% | 4% | |
Expected Future Contributions | |||
Fiscal Year 2020 Expected Future Contributions | $ 0 | $ 0 |
Employee Retirement Benefit P_7
Employee Retirement Benefit Plans-Fiscal Year Maturity (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Jun. 30, 2023 |
Retirement Benefits [Member] | ||
Expected Future Benefit Payments | ||
Defined Benefit Plan, Expected Future Benefit Payment, Next Twelve Months | $ 12 | $ 14 |
Defined Benefit Plan, Expected Future Benefit Payment, Year Two | 13 | 15 |
Defined Benefit Plan, Expected Future Benefit Payment, Year Three | 12 | 16 |
Defined Benefit Plan, Expected Future Benefit Payment, Year Four | 12 | 15 |
Defined Benefit Plan, Expected Future Benefit Payment, Year Five | 13 | 15 |
Defined Benefit Plan, Expected Future Benefit Payment, Five Fiscal Years Thereafter | $ 71 | $ 84 |
Actual Asset Allocation (percent) | 100% | 100% |
Actual Asset Allocation | $ 168 | $ 202 |
Target Asset Allocation (percent) | 100% | 100% |
Retirement Benefits [Member] | Equity Securities [Member] | ||
Expected Future Benefit Payments | ||
Actual Asset Allocation (percent) | 2.90% | 2.90% |
Actual Asset Allocation | $ 5 | $ 6 |
Target Asset Allocation (percent) | 2.90% | 2.90% |
Retirement Benefits [Member] | US Government Agencies Debt Securities [Member] | ||
Expected Future Benefit Payments | ||
Actual Asset Allocation (percent) | 37.70% | 36.80% |
Actual Asset Allocation | $ 63 | $ 74 |
Target Asset Allocation (percent) | 37.70% | 36.80% |
Retirement Benefits [Member] | Corporate Debt Securities [Member] | ||
Expected Future Benefit Payments | ||
Actual Asset Allocation (percent) | 16.80% | 16.20% |
Actual Asset Allocation | $ 28 | $ 33 |
Target Asset Allocation (percent) | 16.80% | 16.20% |
Retirement Benefits [Member] | Real Estate [Member] | ||
Expected Future Benefit Payments | ||
Actual Asset Allocation (percent) | 4.50% | 3.30% |
Actual Asset Allocation | $ 8 | $ 7 |
Target Asset Allocation (percent) | 4.50% | 3.30% |
Retirement Benefits [Member] | Insurance Contracts [Member] | ||
Expected Future Benefit Payments | ||
Actual Asset Allocation (percent) | 16.60% | 14.90% |
Actual Asset Allocation | $ 28 | $ 30 |
Target Asset Allocation (percent) | 16.60% | 14.90% |
Retirement Benefits [Member] | Other Assets [Member] | ||
Expected Future Benefit Payments | ||
Actual Asset Allocation (percent) | 20.50% | 21.40% |
Actual Asset Allocation | $ 34 | $ 43 |
Target Asset Allocation (percent) | 20.50% | 21.40% |
Other Post-Retirement Benefits [Member] | ||
Expected Future Benefit Payments | ||
Defined Benefit Plan, Expected Future Benefit Payment, Next Twelve Months | $ 0 | $ 0 |
Defined Benefit Plan, Expected Future Benefit Payment, Year Two | 0 | 0 |
Defined Benefit Plan, Expected Future Benefit Payment, Year Three | 0 | 0 |
Defined Benefit Plan, Expected Future Benefit Payment, Year Four | 0 | 0 |
Defined Benefit Plan, Expected Future Benefit Payment, Year Five | 0 | 0 |
Defined Benefit Plan, Expected Future Benefit Payment, Five Fiscal Years Thereafter | $ 1 | $ 1 |
Actual Asset Allocation (percent) | 0% | 0% |
Actual Asset Allocation | $ 0 | $ 0 |
Target Asset Allocation (percent) | 0% | 0% |
Other Post-Retirement Benefits [Member] | Equity Securities [Member] | ||
Expected Future Benefit Payments | ||
Actual Asset Allocation (percent) | 0% | 0% |
Actual Asset Allocation | $ 0 | $ 0 |
Target Asset Allocation (percent) | 0% | 0% |
Other Post-Retirement Benefits [Member] | US Government Agencies Debt Securities [Member] | ||
Expected Future Benefit Payments | ||
Actual Asset Allocation (percent) | 0% | 0% |
Actual Asset Allocation | $ 0 | $ 0 |
Target Asset Allocation (percent) | 0% | 0% |
Other Post-Retirement Benefits [Member] | Corporate Debt Securities [Member] | ||
Expected Future Benefit Payments | ||
Actual Asset Allocation (percent) | 0% | 0% |
Actual Asset Allocation | $ 0 | $ 0 |
Target Asset Allocation (percent) | 0% | 0% |
Other Post-Retirement Benefits [Member] | Real Estate [Member] | ||
Expected Future Benefit Payments | ||
Actual Asset Allocation (percent) | 0% | 0% |
Actual Asset Allocation | $ 0 | $ 0 |
Target Asset Allocation (percent) | 0% | 0% |
Other Post-Retirement Benefits [Member] | Insurance Contracts [Member] | ||
Expected Future Benefit Payments | ||
Actual Asset Allocation (percent) | 0% | 0% |
Actual Asset Allocation | $ 0 | $ 0 |
Target Asset Allocation (percent) | 0% | 0% |
Other Post-Retirement Benefits [Member] | Other Assets [Member] | ||
Expected Future Benefit Payments | ||
Actual Asset Allocation (percent) | 0% | 0% |
Actual Asset Allocation | $ 0 | $ 0 |
Target Asset Allocation (percent) | 0% | 0% |
Employee Retirement Benefit P_8
Employee Retirement Benefit Plans-Fair Value (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Jun. 30, 2023 |
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $ 168 | $ 202 |
Level 1 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Level 2 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 141 | 175 |
Level 3 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 27 | 27 |
Fair Value Measured at Net Asset Value | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Equity Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 5 | 6 |
Equity Securities [Member] | Level 1 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Equity Securities [Member] | Level 2 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 5 | 6 |
Equity Securities [Member] | Level 3 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Equity Securities [Member] | Fair Value Measured at Net Asset Value | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Debt Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 91 | 107 |
Debt Securities [Member] | Level 1 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Debt Securities [Member] | Level 2 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 91 | 107 |
Debt Securities [Member] | Level 3 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Debt Securities [Member] | Fair Value Measured at Net Asset Value | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Real Estate [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 5 | 7 |
Real Estate [Member] | Level 1 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Real Estate [Member] | Level 2 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 3 | 5 |
Real Estate [Member] | Level 3 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 2 | 2 |
Real Estate [Member] | Fair Value Measured at Net Asset Value | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Other Assets [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 67 | 82 |
Other Assets [Member] | Level 1 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Other Assets [Member] | Level 2 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 42 | 57 |
Other Assets [Member] | Level 3 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 25 | 25 |
Other Assets [Member] | Fair Value Measured at Net Asset Value | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Hedge Funds [Member] | Level 2 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $ 12 | $ 20 |
Employee Retirement Benefit P_9
Employee Retirement Benefit Plans-Level 3 (Details) - Level 3 [Member] $ in Millions | 12 Months Ended |
Jun. 30, 2024 USD ($) | |
Employer contributions between measurement date and reporting date | |
Beginning balance | $ 27 |
Relating to assets still held at the reporting date | 1 |
Purchases, sales, settlements, contributions and benefits paid | (4) |
Transfers in and/or out of Level 3 | 3 |
Ending balance | 27 |
Insurance Contracts [Member] | |
Employer contributions between measurement date and reporting date | |
Beginning balance | 8 |
Relating to assets still held at the reporting date | 1 |
Purchases, sales, settlements, contributions and benefits paid | (2) |
Transfers in and/or out of Level 3 | 0 |
Ending balance | 7 |
Other Unobservable Assets [Member] | |
Employer contributions between measurement date and reporting date | |
Beginning balance | 19 |
Relating to assets still held at the reporting date | 0 |
Purchases, sales, settlements, contributions and benefits paid | (2) |
Transfers in and/or out of Level 3 | 3 |
Ending balance | $ 20 |
Employee Retirement Benefit _10
Employee Retirement Benefit Plans-Assumed Healthcare Trend Rates (Details) - Other Post-Retirement Benefits [Member] - USD ($) $ in Millions | 12 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Effect of 1% Change in Healthcare Cost Trend Rate | ||
Fiscal Year 2020 Expected Future Contributions | $ 0 | $ 0 |
Discount rate (percent) | 5% | 4.70% |
Discount rate (percent) | 4.70% | 4% |
Post 65 [Member] | ||
Assumed Healthcare Cost Trend Rates at the Balance Sheet Date | ||
Healthcare cost trend rate-initial (percent) | 5% | 4.80% |
Healthcare cost trend rate-ulitimate (percent) | 4.10% | 4.10% |
Year in which ultimate rates are reached | 2040 | 2040 |
Equity and Accumulated Other _2
Equity and Accumulated Other Comprehensive Income (Loss) Equity (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||
Nov. 18, 2021 | Nov. 23, 2020 | Mar. 31, 2024 | Mar. 31, 2024 | Jun. 30, 2022 | Jun. 30, 2024 | Feb. 05, 2024 | Jun. 30, 2023 | May 17, 2019 | |
Equity [Abstract] | |||||||||
Common Stock, Shares Authorized | 1,000,000,000 | 1,000,000,000 | |||||||
Common stock, par value (usd per share) | $ 0.01 | $ 0.01 | $ 0.01 | ||||||
Preferred Stock, Shares Authorized | 100,000,000 | 100,000,000 | |||||||
Preferred Stock, Shares Issued & Outstanding | 0 | 0 | |||||||
Preferred Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 | $ 0.01 | ||||||
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 | $ 0.01 | ||||||
Preferred Stock, Shares Issued | 650,000 | 0 | 0 | ||||||
Preferred Stock, Issuance Value | $ 650,000,000 | ||||||||
Preferred Stock, Value, Issued | 1,000 | ||||||||
Preferred Stock, Issuance Value, Net | $ 646,000,000 | ||||||||
Embedded Derivative, Estimate of Embedded Derivative Liability | $ 40,000,000 | ||||||||
Conversion of Stock, Shares Converted | 384,777 | 265,223 | |||||||
Dividends, Preferred Stock, Stock | $ 2 | $ 2,000,000 | |||||||
Convertible Preferred Stock, Shares Issued upon Conversion | 20.32 | 20.33 | |||||||
Stock Issued During Period, Shares, Conversion of Convertible Securities | 7,817,554 | 5,392,280 | |||||||
Preferred Stock, Shares Issued & Outstanding | 0 | 0 | |||||||
Stock Issued During Period, Value, Conversion of Convertible Securities | 362,000,000 | ||||||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Purchases, Sales, Issues, Settlements | $ 1 | ||||||||
Additional Paid-in Capital [Member] | |||||||||
Auction Market Preferred Securities, Stock Series [Line Items] | |||||||||
Stock Issued During Period, Value, Conversion of Convertible Securities | $ 362 | $ 362,000,000 | |||||||
Designated shares [Member] | |||||||||
Equity [Abstract] | |||||||||
Preferred Stock, Shares Authorized | 1,000,000 | ||||||||
Auction Market Preferred Securities, Stock Series [Line Items] | |||||||||
Preferred Stock, Shares Authorized | 1,000,000 |
Equity and Accumulated Other _3
Equity and Accumulated Other Comprehensive Income (Loss) Accumulated Other Comprehensive Earnings/(Loss) (Details) - USD ($) | 12 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | $ (404,000,000) | $ (354,000,000) | $ (394,000,000) | $ (317,000,000) |
Other comprehensive income /(loss), net of tax | (50,000,000) | 40,000,000 | (77,000,000) | |
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, after Tax | 14,000,000 | (9,000,000) | ||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | (32,000,000) | 32,000,000 | (110,000,000) | |
Other Comprehensive Income (Loss), Securities, Available-for-sale, Adjustment, after Tax | 4,000,000 | (3,000,000) | ||
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | (52,000,000) | 34,000,000 | (78,000,000) | |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 2,000,000 | 6,000,000 | 1,000,000 | |
Accumulated Translation Adjustment [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (378,000,000) | (346,000,000) | (378,000,000) | (268,000,000) |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | 32,000,000 | (110,000,000) | ||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 0 | 0 | ||
Accumulated Defined Benefit Plans Adjustment [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (48,000,000) | (52,000,000) | (38,000,000) | (47,000,000) |
Other Comprehensive Income (Loss), before Reclassifications, before Tax | 4,000,000 | |||
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, after Tax | (4,000,000) | |||
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | 2,000,000 | (16,000,000) | 8,000,000 | |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 2,000,000 | 2,000,000 | 1,000,000 | |
AOCI, Derivative Qualifying as Hedge, Excluded Component, Parent | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | 23,000,000 | 45,000,000 | 27,000,000 | 0 |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | 18,000,000 | 27,000,000 | ||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 0 | 0 | ||
ACOI, Accumulated Gain (Loss), Marketable Securities | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | 0 | 0 | (4,000,000) | (1,000,000) |
Other Comprehensive Income (Loss), Securities, Available-for-sale, Adjustment, after Tax | 0 | 4,000,000 | (3,000,000) | |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | 0 | (3,000,000) | ||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 0 | 4,000,000 | 0 | |
AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-sale, Parent | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (1,000,000) | (1,000,000) | (1,000,000) | $ (1,000,000) |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | $ 0 | 0 | 0 | |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | $ 0 | $ 0 |
Equity and Accumulated Other _4
Equity and Accumulated Other Comprehensive Income (Loss)-Minimum Pension Liability (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2022 | |
Equity [Abstract] | |||
Net investment hedge | $ 21 | $ (30) | $ 121 |
Long term inter-company loans | 1 | 12 | (37) |
Translation adjustments | (50) | 43 | (169) |
Total foreign currency translation adjustments, pretax | (28) | 25 | (85) |
Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Tax | 4 | (7) | 25 |
Total foreign currency translation adjustments, net of tax | 32 | (110) | |
Net Derivative and Hedge (gain)/loss arising during the year | (25) | 25 | 36 |
Derivative and Hedge, (Income) Loss | (3) | 7 | 9 |
Other Comprehensive Income, Debt Securities, Derivative and Hedge, Gain (Loss), after Adjustment and Tax | 22 | 18 | 27 |
Net gain/(loss) arising during the year | 8 | (17) | 13 |
Pension liability tax | 4 | (3) | 4 |
Net change in minimum pension liability, net of tax | (14) | 9 | |
Other Comprehensive Income (Loss), Securities, Available-for-Sale, Unrealized Holding Gain (Loss) Arising During Period, before Tax | 0 | 5 | (3) |
Other Comprehensive Income (Loss), Securities, Available-for-sale, Tax | $ 0 | (1) | 0 |
Other Comprehensive Income (Loss), Securities, Available-for-sale, Adjustment, after Tax | $ 4 | $ (3) |
Equity (Details)
Equity (Details) - USD ($) | Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | May 17, 2019 |
Redeemable Preferred Stock [Line Items] | |||||
Preferred Stock, Shares Authorized | 100,000,000 | 100,000,000 | |||
Preferred Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 | $ 0.01 | ||
Preferred Stock, Shares Issued | 0 | 0 | 650,000 | ||
Preferred Stock, Issuance Value | $ 650,000,000 | ||||
Preferred Stock, Value, Issued | 1,000 | ||||
Preferred Stock, Value, Outstanding | $ 0 | $ 0 | |||
Preferred Stock, Issuance Value, Net | 646,000,000 | ||||
Embedded Derivative, Estimate of Embedded Derivative Liability | $ 40,000,000 | ||||
Redeemable Preferred Stock Outstandings | $ 0 | $ 0 | $ 0 | $ 359,000,000 | |
Designated shares [Member] | |||||
Redeemable Preferred Stock [Line Items] | |||||
Preferred Stock, Shares Authorized | 1,000,000 |
Equity Based Compensation (Addi
Equity Based Compensation (Additional) (Details) - USD ($) | 12 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Additional Shares Authorized | 13,657,302 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Number of Shares, Period Increase (Decrease) | 1.7 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Option, Nonvested, Weighted Average Exercise Price | $ 21.95 | $ 37.14 | $ 32.07 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value | $ 2,000,000 | $ 3,000,000 | |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 3 years | ||
Weighted Average Grant Date Fair Value of Restricted Stock Unit | $ 79,000,000 | 76,000,000 | |
Stock Option Granted Contractual Term | 10 years | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost | $ 68,000,000 | 35,000,000 | $ 54,000,000 |
Restricted Stock Units (RSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 1 year 9 months 18 days | ||
Weighted Average Grant Date Fair Value of Restricted Stock Unit | $ 46.05 | 75.62 | 109.63 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value | $ 27,000,000 | $ 39,000,000 | $ 33,000,000 |
Employee Stock Option [Member] | Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate | 52% | 37% | 37% |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | 4.40% | 3.20% | 0.70% |
Employee Stock Option [Member] | Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | 4 years | 4 years 3 months 18 days | 3 years 8 months 12 days |
Share Based Compensation Arrangement by Share Based Payment Award, Fair Value Assumptions, Expected Dividend Payments, Per Share | $ 0 | $ 0 | $ 0 |
Performance Shares [Member] | Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate | 52% | 41% | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | 2 years 6 months | 2 years 4 months 24 days | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | 4% | 3% | |
Performance Shares [Member] | Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate | 57% | 47% | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | 3 years | 2 years 10 months 24 days | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | 5% | 4.60% | |
Share Based Compensation Arrangement by Share Based Payment Award, Fair Value Assumptions, Expected Dividend Payments, Per Share | $ 0 | $ 0 | |
Stock Compensation Plan - Omnibus [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested, Number of Shares | 473,000 | 151,000 | 183,000 |
Equity Based Compensation (Opti
Equity Based Compensation (Option Activity) (Details) - USD ($) | 12 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Outstanding Options, Weighted Average Exercise Price | $ 64.81 | $ 71.19 | |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | 47.39 | ||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Exercises in Period, Weighted Average Exercise Price | 47.02 | ||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Forfeitures in Period, Weighted Average Exercise Price | 97.23 | ||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Expirations in Period, Weighted Average Exercise Price | 72.90 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Weighted Average Exercise Price | 64.81 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Weighted Average Exercise Price | $ 65.78 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value | $ 2,000,000 | $ 3,000,000 | |
Payments Related to Tax Withholding for Share-based Compensation | 0 | 0 | $ 10,000,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested in Period, Fair Value | 13,000,000 | $ 9,000,000 | |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 6,000,000 | ||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 3 years | ||
Time [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 1,187,497 | 1,008,747 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 473,432 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | (193,508) | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures in Period | (33,550) | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Expirations in Period | (67,624) | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Number | 1,187,497 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Number | 521,898 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term | 5 years 8 months 12 days | 6 years 2 months 19 days | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Weighted Average Remaining Contractual Term | 3 years 2 months 15 days | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value | $ 8,655,393 | $ 2,225,819 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value | 1,862,358 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Aggregate Intrinsic Value | 8,655,393 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Aggregate Intrinsic Value | $ 4,499,875 | ||
Performance [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 1,187,497 |
Equity Based Compensation (RSU
Equity Based Compensation (RSU Activity) (Details) - USD ($) | 12 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 1,888,000 | 1,124,000 | |
Payments Related to Tax Withholding for Share-based Compensation | $ 0 | $ 0 | $ 10,000,000 |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 3 years | ||
Weighted Average Grant Date Fair Value of Restricted Stock Unit | $ 79,000,000 | $ 76,000,000 | |
Time Based Restricted Stock Units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 2,154,592 | 1,026,729 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 1,611,350 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | 220,139 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Period Increase (Decrease) | 263,348 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $ 56.14 | $ 83.07 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | 47.77 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | 87.79 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | $ 65.22 | ||
Performance Shares [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 159,988 | 273,985 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 46,899 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | 84,342 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Period Increase (Decrease) | 76,554 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $ 103.17 | $ 99.58 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | 0 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | 88.35 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | $ 105.33 | ||
Restricted Stock Units (RSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 587,029 | 342,546 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 326,062 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | 190 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Period Increase (Decrease) | 81,389 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $ 51.98 | $ 82.36 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | 39.52 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | 63.13 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | $ 63.42 | ||
Restricted Stock Units (RSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options | $ 55,000,000 | ||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 1 year 9 months 18 days | ||
Weighted Average Grant Date Fair Value of Restricted Stock Unit | $ 46.05 | $ 75.62 | 109.63 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value | $ 27,000,000 | $ 39,000,000 | $ 33,000,000 |
Other Income _ Expense (Details
Other Income / Expense (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2022 | ||
Other Income and Expenses [Abstract] | ||||
Other Nonoperating Expense | [1] | $ 4 | ||
Foreign Currency Transaction Gain (Loss), Unrealized | [2] | $ (20) | $ 8 | (33) |
Other Nonoperating Income (Expense) | [3] | (4) | (1) | 9 |
Other (Income)/expense, net | $ 24 | 7 | $ 28 | |
Derivative, Gain (Loss) on Derivative, Net | $ 2 | |||
[1]Debt financing costs for the fiscal year ended June 30, 2022 consists of $4 million of financing charges related to a tranche of U.S. dollar-denominated term loans under its senior secured credit facilities.[2]Foreign currency losses (gains) include both cash and non-cash transactions.[3]Other, for the fiscal year ended June 30, 2022 includes, in part, total realized and unrealized gain of $2 million, related to the fair value of the derivative liability associated with the formerly outstanding Series A Preferred Stock. |
Leases - Schedule of Operating
Leases - Schedule of Operating and Finance Leases Presented in the Balance Sheet (Details) - USD ($) | 12 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Assets and Liabilities, Lessee [Abstract] | ||
Finance Lease, Right-of-Use Asset, after Accumulated Amortization | $ 252,000,000 | |
Operating Lease, Right-of-Use Asset | 77,000,000 | $ 59,000,000 |
Finance Lease, Liability, Payments, Due Year One | 37,000,000 | 18,000,000 |
Finance Lease, Liability, Current | 20,000,000 | |
Lessee, Operating Lease, Liability, Payments, Due Year One | 17,000,000 | $ 11,000,000 |
Lessee, Operating Lease, Liability, Payments, Due | 104,000,000 | |
Operating Lease, Liability, Current | 13,000,000 | |
Finance Lease, Liability, Noncurrent | 312,000,000 | |
Operating Lease, Liability, Noncurrent | $ 70,000,000 | |
Operating Lease, Liability, Statement of Financial Position [Extensible List] | Other Liabilities | |
Finance Lease, Liability, Statement of Financial Position [Extensible List] | Other Liabilities | |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Property, Plant and Equipment, Net | Property, Plant and Equipment, Net |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Property, Plant and Equipment, Net | Other Assets, Noncurrent |
Finance Lease, Liability, Payment, Due | $ 323,000,000 | |
Operating Lease, Liability, to be Paid, Greater than Year One | $ 55,000,000 | |
Lessee, Lease, Description [Line Items] | ||
Finance Lease, Right-of-Use Asset, after Accumulated Amortization | $ 252,000,000 | |
Operating Lease, Liability, Noncurrent | 70,000,000 | |
Lessee, Operating Lease, Liability, Payments, Due | $ 104,000,000 | |
Minimum [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Lessee, Term of Contract | 3 years | |
Maximum [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Lessee, Term of Contract | 10 years |
Leases - Cost (Details)
Leases - Cost (Details) - USD ($) | 12 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2022 | |
Lease, Cost [Abstract] | |||
Finance Lease, Right-of-Use Asset, Amortization | $ 30,000,000 | $ 21,000,000 | |
Finance Lease, Interest Expense | 21,000,000 | 17,000,000 | |
Finance Lease Expense | 51,000,000 | 38,000,000 | |
Variable Lease, Cost | 16,000,000 | 10,000,000 | |
Lease, Cost | 94,000,000 | 83,000,000 | |
Short-Term Lease Costs | $ 9,000,000 | 10 | $ 8 |
Finance Lease, Weighted Average Remaining Lease Term | 16 years 1 month 6 days | ||
Operating Lease, Weighted Average Remaining Lease Term | 9 years | ||
Finance Lease, Weighted Average Discount Rate, Percent | 6.20% | ||
Operating Lease, Weighted Average Discount Rate, Percent | 4.60% | ||
Operating Lease, Cost | $ 27,000,000 | $ 35,000,000 |
Leases - Schedule of Supplement
Leases - Schedule of Supplemental Cash Flow Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2022 | |
Cash Paid For Amounts Included In Measurement Of Lease Liabilities [Abstract] | |||
Finance Lease, Principal Payments | $ 19 | $ 19 | $ 15 |
Finance Lease, Interest Payment on Liability | 16 | 15 | 11 |
Operating Lease, Payments | 14 | 16 | 19 |
Right-of-Use Asset Obtained in Exchange for Finance Lease Liability | 57 | 133 | 59 |
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability | $ 38 | $ 1 | $ 31 |
Leases - Schedule of Maturities
Leases - Schedule of Maturities of Operating And Finance Lease Liabilities (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Jun. 30, 2023 |
Leases [Abstract] | ||
Finance Lease, Liability, Payments, Due Year One | $ 37 | $ 18 |
Finance Lease, Liability, Payments, Due Year Two | 39 | |
Finance Lease, Liability, Payments, Due Year Three | 37 | |
Finance Lease, Liability, Payments, Due Year Four | 34 | |
Finance Lease, Liability, Payments, Due Year Five | 34 | |
Finance Lease, Liability, Payments, Due after Year Five | 337 | |
Finance Lease, Liability, Payment, Due | 518 | |
Finance Lease, Liability, Undiscounted Excess Amount | 186 | |
Finance Lease, Liability | 332 | |
Lessee, Operating Lease, Liability, Payments, Due Year One | 17 | $ 11 |
Lessee, Operating Lease, Liability, Payments, Due Year Two | 15 | |
Lessee, Operating Lease, Liability, Payments, Due Year Three | 14 | |
Lessee, Operating Lease, Liability, Payments, Due Year Four | 13 | |
Lessee, Operating Lease, Liability, Payments, Due Year Five | 9 | |
Lessee, Operating Lease, Liability, Payments, Due after Year Five | 36 | |
Lessee, Operating Lease, Liability, Payments, Due | 104 | |
Lessee, Operating Lease, Liability, Undiscounted Excess Amount | 21 | |
Operating Lease, Liability | 83 | |
Total Lease Liability Payments Due Year One | 54 | |
Total Lease Liability Payments Due Year Two | 54 | |
Total Lease Liability Payments Due Year Three | 51 | |
Total Lease Liability Payments Due Year Four | 47 | |
Total Lease Liability Payments Due Year Five | 43 | |
Total Lease Liability Payments Due After Year Five | 373 | |
Total Lease Liability Payments Due | 622 | |
Total Lease Liability Undiscounted Excess Amount | 207 | |
Total Lease Liability | $ 415 | |
Finance Lease, Weighted Average Remaining Lease Term | 16 years 1 month 6 days |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) | 12 Months Ended | |
Jun. 30, 2024 USD ($) | Feb. 05, 2024 $ / shares | |
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 control 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. On November 15, 2023, the Warwick Defendants filed a motion to dismiss the Warwick Complaint. On June 28, 2024, the Court granted, in part, and denied, in part, the Company's motion to dismiss. The Warwick Defendants’ answer to the Warwick Complaint was filed on August 12, 2024. The Company believes that the Warwick Defendants have defenses to the remaining allegations and intends to vigorously defend against these allegations. 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. Merger Related Claims In connection with the proposed Merger, as disclosed below, three purported Catalent stockholders filed lawsuits alleging that certain disclosures made in the Proxy Statement were materially false and misleading: Garfield v. Barber, et al. , C.A. No. SOM-C 012027-24 (N.J. Super. Ct.), which was filed in the Superior Court of New Jersey; Moore v. Catalent, Inc., et al. , No. 652403/2024 (N.Y. Sup. Ct.), which was filed in the Supreme Court of New York; and Clark v. Catalent, Inc., et al. , No. 652407/2024 (N.Y. Sup. Ct.), which was filed in the Supreme Court of New York. The aforementioned lawsuits are collectively referred to as the “Actions.” The Actions alleged, among other things, that certain disclosures in the Proxy Statement filed in connection with the Merger Agreement omitted certain purportedly material information. The Garfield Action asserted violations of New Jersey Uniform Securities Law § 49:3-71 and negligent misrepresentation and concealment and negligence under New Jersey common law. The Moore and Clark Actions each asserted a single claim for breach of fiduciary duty. On May 17, 2024, the Garfield Action was voluntarily dismissed with prejudice. On June 26, 2024, the Moore and Clark Actions were voluntarily dismissed with 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 twelve months ended June 30, 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 $16.50 billion on an enterprise value basis. Consummation of the Merger is subject to customary closing conditions, including (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. | |
Other Commitments [Line Items] | ||
Business Combination, Purchase Price per Share | $ / shares | $ 63.5 | |
Loss Contingency, Estimate of Possible Loss | $ | $ 9 | |
Merger Agreement [Member] | ||
Other Commitments [Line Items] | ||
Business Combination, Enterprise Value | 16,500,000,000 |
Segment Information - Net Reven
Segment Information - Net Revenue and Segment Ebitda (Detail) - USD ($) | 12 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2022 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Net revenue | $ 4,381,000,000 | $ 4,263,000,000 | $ 4,802,000,000 |
Impairment charges and gain/(loss) on sale of assets | (29,000,000) | (98,000,000) | (31,000,000) |
Equity compensation | (68,000,000) | (35,000,000) | (54,000,000) |
Restructuring and other special items | (178,000,000) | (98,000,000) | (55,000,000) |
Disposal Group, Not Discontinued Operation, Gain (Loss) on Disposal | 0 | 0 | 1,000,000 |
Non-allocated corporate costs, net | (155,000,000) | (125,000,000) | (119,000,000) |
Total unallocated costs | 1,153,000,000 | 559,000,000 | 286,000,000 |
Depreciation and amortization | (489,000,000) | (422,000,000) | (378,000,000) |
Income Tax Expense | (16,000,000) | 86,000,000 | (80,000,000) |
Interest Income (Expense), Operating | (254,000,000) | (186,000,000) | (123,000,000) |
Earnings/(loss) from continuing operations | (1,043,000,000) | (256,000,000) | 499,000,000 |
Biologics [Member] | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Segment EBITDA | 272,000,000 | 277,000,000 | 777,000,000 |
Biologics [Member] | Oxford | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Asset impairments | 54 | ||
Biologics [Member] | Swindon | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Asset impairments | 18 | ||
PharmaConsumerHealth | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Segment EBITDA | 597,000,000 | 548,000,000 | 589,000,000 |
Total Catalent sub-total of Segment Reporting [Member] | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Segment EBITDA | $ 869,000,000 | $ 825,000,000 | $ 1,366,000,000 |
Segment Information - Reconcili
Segment Information - Reconciliation of Earnings/ (loss) from Continuing Operations to Ebitda (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Segment Reporting [Abstract] | ||||
Earnings/(loss) from continuing operations | $ (1,043) | $ (256) | $ 499 | |
Total unallocated costs | (1,153) | (559) | (286) | |
Depreciation and amortization | 489 | 422 | 378 | |
Interest expense, net | 254 | 186 | 123 | |
Income tax expense | 16 | (86) | 80 | |
Non Allocated Corporate Costs Net | 155 | 125 | 119 | |
Impairment Charges And Gain Loss On Sale Of Assets | 29 | 98 | 31 | |
Share-Based Payment Arrangement, Expense | 68 | 35 | 54 | |
Restructuring and other special items | (178) | (98) | (55) | |
Debtor Reorganization Items, Pension and Other Postretirement Related Charges | 12 | |||
Goodwill, Impairment Loss | (687) | (210) | $ 0 | |
Other (Income)/expense, net | $ 24 | $ 7 | $ 28 |
Segment Information Total Asset
Segment Information Total Assets (Details) - USD ($) | Jun. 30, 2024 | Jun. 30, 2023 |
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | $ 9,753,000,000 | $ 10,777,000,000 |
Biologics [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | 5,326,000,000 | 5,746,000,000 |
PharmaConsumerHealth | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | 4,643,000,000 | 4,867,000,000 |
Corporate and Eliminations [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | $ (216,000,000) | $ 164,000,000 |
Segment Information Depreciatio
Segment Information Depreciation and Amortization (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2022 | |
Segment Reporting Information [Line Items] | |||
Depreciation and Amortization | $ 489 | $ 422 | $ 378 |
Segment Information Capital Exp
Segment Information Capital Expenditures (Details) - USD ($) | 12 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2022 | |
Segment Reporting Information [Line Items] | |||
Payments and Accruals to Acquire Property, Plant. and Equipment | $ 351,000,000 | $ 594,000,000 | $ 666,000,000 |
Biologics [Member] | |||
Segment Reporting Information [Line Items] | |||
Payments and Accruals to Acquire Property, Plant. and Equipment | 171,000,000 | 346,000,000 | 453,000,000 |
PharmaConsumerHealth | |||
Segment Reporting Information [Line Items] | |||
Payments and Accruals to Acquire Property, Plant. and Equipment | 164,000,000 | 214,000,000 | 183,000,000 |
Corporate [Member] | |||
Segment Reporting Information [Line Items] | |||
Payments and Accruals to Acquire Property, Plant. and Equipment | $ 16,000,000 | $ 34,000,000 | $ 30,000,000 |
Segment Information - Assets an
Segment Information - Assets and Revenues (Detail) - USD ($) | Jun. 30, 2024 | Jun. 30, 2023 |
Segment Reporting Information [Line Items] | ||
Property, Plant and Equipment, Net | $ 3,643,000,000 | $ 3,682,000,000 |
United States [Member] | ||
Segment Reporting Information [Line Items] | ||
Property, Plant and Equipment, Net | 2,625,000,000 | 2,758,000,000 |
Europe | ||
Segment Reporting Information [Line Items] | ||
Property, Plant and Equipment, Net | 828,000,000 | 765,000,000 |
International Other [Member] | ||
Segment Reporting Information [Line Items] | ||
Property, Plant and Equipment, Net | $ 190,000,000 | $ 159,000,000 |
Supplemental Balance Sheet In_3
Supplemental Balance Sheet Information - Work-in-Process and Finished Goods Inventories Include Raw Materials, Labor and Overhead (Detail) - USD ($) $ in Millions | Jun. 30, 2024 | Jun. 30, 2023 |
Balance Sheet Related Disclosures [Abstract] | ||
Raw materials and supplies | $ 646 | $ 781 |
Work-in-process | 138 | 186 |
Total inventory, gross | 784 | 967 |
Inventory cost adjustment | (210) | (190) |
Inventories | $ 574 | $ 777 |
Supplemental Balance Sheet In_4
Supplemental Balance Sheet Information - Prepaid and Other Assets (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2022 | |
Balance Sheet Related Disclosures [Abstract] | |||
Prepaid Expense, Current | $ 46 | $ 53 | |
Contract with Customer, Asset, after Allowance for Credit Loss, Current | 585 | 399 | |
Spare Parts | 29 | 24 | |
Prepaid Taxes | 45 | 77 | |
Value Added Tax Receivable | 60 | 38 | |
Other current assets | 48 | 42 | |
Prepaid Expense and Other Assets, Current | 813 | 633 | |
Payments and Accruals to Acquire Property, Plant. and Equipment | $ 351 | $ 594 | $ 666 |
Supplemental Balance Sheet In_5
Supplemental Balance Sheet Information - Property and Equipment (Detail) - USD ($) | Jun. 30, 2024 | Jun. 30, 2023 |
Balance Sheet Related Disclosures [Abstract] | ||
Land, buildings, and improvements | $ 1,987,000,000 | $ 1,887,000,000 |
Machinery and equipment | 2,538,000,000 | 2,287,000,000 |
Furniture and fixtures | 62,000,000 | 61,000,000 |
Construction in progress | 971,000,000 | 1,043,000,000 |
Property and equipment, at cost | 5,558,000,000 | 5,278,000,000 |
Accumulated depreciation | (1,915,000,000) | (1,596,000,000) |
Property, plant, and equipment, net | $ 3,643,000,000 | $ 3,682,000,000 |
Supplemental Balance Sheet In_6
Supplemental Balance Sheet Information - Other Assets Non Current (Detail) - USD ($) | Jun. 30, 2024 | Jun. 30, 2023 |
Balance Sheet Related Disclosures [Abstract] | ||
Operating Lease, Right-of-Use Asset | $ 77,000,000 | $ 59,000,000 |
Loans and Leases Receivable, Gross | 56,000,000 | 53,000,000 |
Cash Surrender Value of Life Insurance | 48,000,000 | 41,000,000 |
Alternative Investment | 47,000,000 | 36,000,000 |
Interest Rate Derivative Assets, at Fair Value | 36,000,000 | 62,000,000 |
Other Assets, Miscellaneous, Noncurrent | 38,000,000 | 42,000,000 |
Other Assets, Noncurrent | 332,000,000 | 329,000,000 |
Deferred Income Tax, Right-of-Use Asset | 77,000,000 | 59,000,000 |
Contract with Customer, Asset | 17,000,000 | 18,000,000 |
Pension assets | $ 13,000,000 | $ 18,000,000 |
Supplemental Balance Sheet In_7
Supplemental Balance Sheet Information - Other Accrued Liabilities (Detail) - USD ($) | Jun. 30, 2024 | Jun. 30, 2023 |
Balance Sheet Related Disclosures [Abstract] | ||
Accrued employee-related expenses | $ 181,000,000 | $ 160,000,000 |
Interest Payable, Current | 37,000,000 | 35,000,000 |
Deferred revenue and fees | 250,000,000 | 167,000,000 |
Accrued income tax | 16,000,000 | 44,000,000 |
Other accrued liabilities and expenses | 115,000,000 | 134,000,000 |
Other accrued liabilities | 622,000,000 | 570,000,000 |
Accrued Operating Lease, Liabilities | 13,000,000 | 11,000,000 |
Restructuring accrual | 10,000,000 | 19,000,000 |
Other Assets, Noncurrent | $ 332,000,000 | $ 329,000,000 |
Supplemental Balance Sheet In_8
Supplemental Balance Sheet Information- Allowance for Doubtful Accounts (Details) $ in Millions | 12 Months Ended |
Jun. 30, 2024 USD ($) | |
Trade receivables allowance for doubtful accounts | |
Beginning balance | $ 46 |
Provision for Doubtful Accounts | (6) |
Accounts Receivable, Allowance for Credit Loss, Writeoff | (17) |
Closing balance | $ 23 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2021 | |
Subsequent Event [Line Items] | |||
Goodwill, Impairment Loss | $ 687 | $ 210 | $ 0 |
Deferred Tax Assets, Valuation Allowance | 315 | 159 | |
PharmaConsumerHealth | |||
Subsequent Event [Line Items] | |||
Goodwill, Impairment Loss | $ 295 | $ 210 |