Segment Information

12 Months Ended

Jun. 30, 2017

Segment Reporting [Abstract]

Segment Reporting Disclosure [Text Block]

15. SEGMENT AND GEOGRAPHIC INFORMATION

As discussed in Note 1, the Company conducts its business within the following operating segments: Softgel Technologies, Drug Delivery Solutions, and Clinical Supply Services. The Company evaluates the performance of its segments based on segment earnings before noncontrolling interest, other (income) expense, impairments, restructuring costs, interest expense, income tax (benefit)/expense, and depreciation and amortization ("Segment EBITDA"). The Company considers its reporting segments' results in the context of a similar Company-wide measure: EBITDA from continuing operations is consolidated earnings from continuing operations before interest expense, income tax (benefit)/expense, depreciation and amortization and is adjusted for the income or loss attributable to noncontrolling interest. Neither Segment EBITDA nor EBITDA from continuing operations is defined under U.S. GAAP, and neither is a measure of operating income, operating performance or liquidity presented in accordance with U.S. GAAP. Each of these non-GAAP measures is subject to important limitations. This Note to the consolidated financial statements includes information concerning Segment EBITDA and EBITDA from continuing operations in order to provide supplemental information that the Company considers relevant for the readers of the consolidated financial statements, and such information is not meant to replace or supersede U.S. GAAP measures. The Company’s presentation of Segment EBITDA and EBITDA from continuing operations may not be comparable to similarly titled measures used by other companies. The most directly comparable U.S. GAAP measure to EBITDA from continuing operations is earnings/(loss) from continuing operations. Included in this Note is a reconciliation of earnings/(loss) from continuing operations to EBITDA from continuing operations.

The following tables include net revenue and Segment EBITDA for each of the Company's reporting segments during the fiscal years ended June 30, 2017, June 30, 2016, and June 30, 2015:

(Dollars in millions)	Fiscal Year Ended    June 30,
	2017			2016			2015
Softgel Technologies
Net revenue	$	855.3		$	775.0		$	787.5
Segment EBITDA	$	190.5		$	163.8		$	173.6
Drug Delivery Solutions
Net revenue	910.1			806.4			798.3
Segment EBITDA	242.4			215.2			230.7
Clinical Supply Services
Net revenue	348.8			307.5			288.4
Segment EBITDA	54.9			53.2			56.7
Inter-segment revenue elimination	(38.8		)	(40.8		)	(43.4		)
Unallocated costs (1)	(115.6		)	(57.9		)	(100.8		)
Combined Total
Net revenue	$	2,075.4		$	1,848.1		$	1,830.8
EBITDA from continuing operations	$	372.2		$	374.3		$	360.2

(1) Unallocated costs include restructuring and special items, equity-based compensation, 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,
	2017			2016			2015
Impairment charges and gain/(loss) on sale of assets	$	(9.8	)	$	(2.7	)	$	(4.7	)
Equity compensation	(20.9		)	(10.8		)	(9.0		)
Restructuring and other items (2)	(33.5		)	(27.2		)	(27.2		)
Noncontrolling interest	—			0.3			1.9
Other income/(expense), net (3)	(8.5		)	15.6			(42.4		)
Non-allocated corporate costs, net	(42.9		)	(33.1		)	(19.4		)
Total unallocated costs	$	(115.6	)	$	(57.9	)	$	(100.8	)

(2) Segment results do not include restructuring and certain acquisition-related costs.

(3) Refer to Note 13 for details.

Provided below is a reconciliation of earnings/(loss) from continuing operations to EBITDA from continuing operations:

(Dollars in millions)	Fiscal Year Ended    June 30,
	2017		2016		2015
Earnings/(loss) from continuing operations	$	109.8	$	111.2	$	210.2
Depreciation and amortization	146.5		140.6		140.8
Interest expense, net	90.1		88.5		105.0
Income tax (benefit)/expense	25.8		33.7		(97.7		)
Noncontrolling interest	—		0.3		1.9
EBITDA from continuing operations	$	372.2	$	374.3	$	360.2

The following table includes total assets for each segment, as well as reconciling items necessary to total the amounts reported in the Consolidated Financial Statements:

(Dollars in millions)	June 30,   2017			June 30,   2016
Assets
Softgel Technologies	$	1,631.8		$	1,446.4
Drug Delivery Solutions	1,639.0			1,475.7
Clinical Supply Services	596.2			578.9
Corporate and eliminations	(412.7		)	(409.9		)
Total assets	$	3,454.3		$	3,091.1

The following tables include depreciation and amortization expense and capital expenditures for the fiscal years ended June 30, 2017, June 30, 2016 and June 30, 2015 for each segment, as well as reconciling items necessary to total the amounts reported in the Consolidated Financial statements:

Depreciation and Amortization Expense

(Dollars in millions)	Fiscal Year Ended    June 30,
	2017		2016		2015
Softgel Technologies	$	38.4	$	36.7	$	42.8
Drug Delivery Solutions	75.3		72.9		66.9
Clinical Supply Services	18.7		21.1		24.1
Corporate	14.1		9.9		7.0
Total depreciation and amortization expense	$	146.5	$	140.6	$	140.8

Capital Expenditures

(Dollars in millions)	Fiscal Year Ended    June 30,
	2017		2016		2015
Softgel Technologies	$	27.6	$	20.6	$	29.6
Drug Delivery Solutions	83.5		92.4		86.2
Clinical Supply Services	7.2		5.1		6.4
Corporate	21.5		21.5		18.8
Total capital expenditure	$	139.8	$	139.6	$	141.0

The following table presents revenue and long-lived assets by geographic area:

	Net Revenue									Long-Lived Assets(1)
(Dollars in millions)	Fiscal Year Ended    June 30,
	2017			2016			2015			June 30,   2017		June 30,   2016
United States	$	996.4		$	858.6		$	799.3		$	588.0	$	538.9
Europe	797.4			733.2			795.4			281.6		280.2
International Other	345.0			313.5			268.6			126.3		86.7
Eliminations	(63.4		)	(57.2		)	(32.5		)	—		—
Total	$	2,075.4		$	1,848.1		$	1,830.8		$	995.9	$	905.8

(1) Long-lived assets include property and equipment, net of accumulated depreciation.