SEGMENT INFORMATION

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”). 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. The Company’s presentation of Segment EBITDA and EBITDA from continuing operations are not prepared in accordance with GAAP and may not be comparable to similarly titled measures used by other companies.

The following tables include net revenue and Segment EBITDA during the three months ended September 30, 2017 and September 30, 2016:



	Three Months Ended September 30,
(Dollars in millions)	2017			2016
Softgel Technologies
Net revenue	$	219.7		$	186.4
Segment EBITDA	35.1			30.5
Drug Delivery Solutions
Net revenue	225.8			191.3
Segment EBITDA	47.4			42.0
Clinical Supply Services
Net revenue	109.7			75.0
Segment EBITDA	16.7			10.5
Inter-segment revenue elimination	(11.3		)	(10.5		)
Unallocated Costs ⁽¹⁾	(34.0		)	(20.3		)
Combined Totals:
Net revenue	$	543.9		$	442.2

EBITDA from continuing operations	$	65.2		$	62.7


(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:



	Three Months Ended September 30,
(Dollars in millions)	2017			2016
Equity compensation	(7.0		)	(6.9		)
Restructuring and other special items ⁽²⁾	(12.3		)	(5.9		)
Other income/(expense), net ⁽³⁾	(5.7		)	2.1
Non-allocated corporate costs, net	(9.0		)	(9.6		)
Total unallocated costs	$	(34.0	)	$	(20.3	)


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


(3)	Amounts primarily relate to foreign currency translation gains and losses during all periods presented. Refer to Note 7 for details.

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



	Three Months Ended September 30,
(Dollars in millions)	2017			2016
Earnings from continuing operations	$	3.8		$	4.6
Depreciation and amortization	39.0			35.8
Interest expense, net	24.3			22.1
Income tax expense/(benefit)	(1.9		)	0.2
EBITDA from continuing operations	$	65.2		$	62.7

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)	September 30, 2017			June 30, 2017
Assets
Softgel Technologies	$	1,534.7		$	1,631.8
Drug Delivery Solutions	1,632.1			1,639.0
Clinical Supply Services	635.5			596.2
Corporate and eliminations	(17.5		)	(412.7		)
Total assets	$	3,784.8		$	3,454.3

Corporate assets as of September 30, 2017 include $277.8 million of equity proceeds from the public stock offering discussed in Note 12. See also Note 2 concerning the use of these proceeds after the close of the first fiscal quarter.