Segment Information

9 Months Ended

Mar. 31, 2020

SEGMENT INFORMATIONAs disclosed in Note 1, Basis of Presentation and Summary of Significant Accounting Policies, the Company now conducts its business within the following operating segments: Softgel and Oral Technologies, Biologics, Oral and Specialty Delivery, and Clinical Supply Services. The Company evaluates the performance of its segments based on segment earnings before other (expense)/income, impairments, restructuring costs, interest expense, income tax expense/(benefit), and depreciation and amortization (“Segment EBITDA”). “EBITDA from operations” is consolidated earnings from operations

before interest expense, income tax expense/(benefit), and depreciation and amortization. Segment EBITDA and EBITDA from operations are not defined in GAAP and may not be comparable to similarly titled measures used by other companies.

The following tables include net revenue and Segment EBITDA for each of the Company's current reporting segments during the three and nine months ended March 31, 2020 and 2019:


(Dollars in millions)	Three Months Ended March 31,									Nine Months Ended March 31,
			2020			2019			2020			2019
Net revenue:
Softgel and Oral Technologies	$	242.3		$	254.0		$	770.8		$	748.5
Biologics	250.0			133.7			663.8			395.8
Oral and Specialty Delivery	181.4			153.8			457.2			419.1
Clinical Supply Services	88.9			77.8			261.4			236.3
Inter-segment revenue elimination	(2.0)			(1.8)			(6.5)			(7.4)
Net revenue	$	760.6		$	617.5		$	2,146.7		$	1,792.3


(Dollars in millions)	Three Months Ended March 31,									Nine Months Ended March 31,
			2020			2019			2020			2019
Segment EBITDA reconciled to net earnings:
Softgel and Oral Technologies	$	60.1		$	56.3		$	171.0		$	152.3
Biologics	51.9			35.8			150.7			101.9
Oral and Specialty Delivery	56.2			49.0			117.0			113.9
Clinical Supply Services	24.6			20.3			70.2			61.5
Sub-Total	$	192.8		$	161.4		$	508.9		$	429.6
Reconciling items to net earnings
Unallocated costs ⁽¹⁾	(63.9)			(26.0)			(134.6)			(95.2)
Depreciation and amortization	(64.8)			(66.4)			(187.3)			(173.9)
Interest expense, net	(34.4)			(26.4)			(105.6)			(80.0)
Income tax expense	(8.8)			(10.9)			$	(14.9)		(14.2)

Net earnings	$	20.9		$	31.7		$	66.5		$	66.3

(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 March 31,						Nine Months Ended March 31,
(Dollars in millions)	2020		2019		2020		2019
Impairment charges and gain/(loss) on sale of assets	$	(0.6)	$	0.1	$	(2.1)	$	(2.7)
Stock-based compensation	(8.6)		(6.6)		(35.5)		(24.1)
Restructuring and other special items ^(a)	(8.9)		(16.1)		(28.6)		(35.2)



Other income/(expense), net ^(b)	(36.7)		3.2		(37.2)		(3.9)
Unallocated corporate costs, net	(9.1)		(6.6)		(31.2)		(29.3)
Total unallocated costs	$	(63.9)	$	(26.0)	$	(134.6)	$	(95.2)

(a) Restructuring and other special items during the nine months ended March 31, 2020 include transaction and integration costs associated with the Company’s gene and cell therapy acquisitions, the disposal of one of its sites in Australia, and other restructuring initiatives across the Company's network of sites. Restructuring and other special items during the nine months ended March 31, 2019 include transaction and integration costs associated with the acquisitions of Catalent Indiana LLC and Juniper Pharmaceuticals, Inc.

(b) Refer to Note 8, 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 financial statements.


(Dollars in millions)	March 31, 2020		June 30, 2019
Assets
Softgel and Oral Technologies	$	1,453.7	$	1,586.5
Biologics	3,500.7		2,825.7
Oral and Specialty Delivery	1,186.4		1,098.7
Clinical Supply Services	455.1		463.2
Corporate and eliminations	483.7		209.9
Total assets	$	7,079.6	$	6,184.0