XML 54 R10.htm IDEA: XBRL DOCUMENT v3.20.1
Revenue Recognition
 9 Months Ended
Mar. 31, 2020
Revenue Recognition [Abstract]  
Revenue from Contract with Customer [Policy Text Block] REVENUE RECOGNITION
The Company recognizes revenue in accordance with ASC 606. 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.
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 allocate revenue, for the three and nine months ended March 31, 2020 and March 31, 2019, by type of activity and reporting segment (in millions):
Three Months Ended March 31, 2020Softgel & Oral TechnologiesBiologicsOral & Specialty DeliveryClinical Supply ServicesTotal
Manufacturing & commercial product supply$217.6  $85.2  $127.2  $—  $430.0  
Development services24.7  164.8  54.2  —  243.7  
Clinical supply services—  —  —  88.9  88.9  
Total$242.3  $250.0  $181.4  $88.9  $762.6  
Inter-segment revenue elimination  (2.0) 
Combined net revenue$760.6  

Three Months Ended March 31, 2019Softgel & Oral TechnologiesBiologicsOral & Specialty DeliveryClinical Supply ServicesTotal
Manufacturing & commercial product supply$232.9  $66.8  $99.7  $—  $399.4  
Development services21.1  66.9  54.1  —  142.1  
Clinical supply services—  —  —  77.8  77.8  
Total$254.0  $133.7  $153.8  $77.8  $619.3  
Inter-segment revenue elimination  (1.8) 
Combined net revenue$617.5  
Nine Months Ended March 31, 2020Softgel & Oral TechnologiesBiologicsOral & Specialty DeliveryClinical Supply ServicesTotal
Manufacturing & commercial product supply$701.5  $229.6  $294.5  $—  $1,225.6  
Development services69.3  434.2  162.7  —  666.2  
Clinical supply services—  —  —  261.4  261.4  
Total$770.8  $663.8  $457.2  $261.4  $2,153.2  
Inter-segment revenue elimination  (6.5) 
Combined net revenue$2,146.7  

Nine Months Ended March 31, 2019Softgel & Oral TechnologiesBiologicsOral & Specialty DeliveryClinical Supply ServicesTotal
Manufacturing & commercial product supply$680.8  $168.1  $262.4  $—  $1,111.3  
Development services67.7  227.7  156.7  —  452.1  
Clinical supply services—  —  —  236.3  236.3  
Total$748.5  $395.8  $419.1  $236.3  $1,799.7  
Inter-segment revenue elimination  (7.4) 
Combined net revenue$1,792.3  
The following table allocates revenue by the location where the goods were made or the service performed:
(Dollars in millions)Three Months Ended March 31, 2020Three Months Ended March 31, 2019Nine Months Ended March 31, 2020Nine Months Ended March 31, 2019
United States$438.9  $318.4  $1,215.9  $913.9  
Europe258.7  200.8  690.1  609.9  
International Other83.5  108.2  299.8  321.6  
Elimination of revenue attributable to multiple locations(20.5) (9.9) (59.1) (53.1) 
Total$760.6  $617.5  $2,146.7  $1,792.3  
Contract Liabilities
Contract liabilities relate to cash consideration that the Company receives in advance of satisfying the related performance obligations. Changes in the contract liabilities balance during the nine months ended March 31, 2020 are as follows:
(Dollars in millions)
Contract liability
Balance at June 30, 2019$177.4  
Balance at March 31, 2020$180.0  
Revenue recognized in the period from:
Amounts included in contract liability at the beginning of the period$117.2