v3.22.2.2
Segment Information
 12 Months Ended
Jun. 30, 2022
Segment Reporting [Abstract]  
Segment Reporting Disclosure [Text Block] SEGMENT AND GEOGRAPHIC INFORMATION
As discussed in Note 1, Basis of Presentation and Summary of Significant Accounting Policies, the Company conducted its business within the following segments in fiscal 2022: Biologics, Softgel and Oral Technologies, Oral and Specialty Delivery, and Clinical Supply Services. The Company evaluates the performance of its segments based on 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 as it is not defined under U.S. GAAP and is not a measure of operating income, operating performance, or liquidity presented in accordance with U.S. GAAP. 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, 2022, 2021, and 2020:
(Dollars in millions)Fiscal Year Ended June 30,
202220212020
Segment EBITDA reconciled to net earnings:
Biologics$798 $608 $237 
Softgel and Oral Technologies292 237 257 
Oral and Specialty Delivery192 160 201 
Clinical Supply Services110 108 91 
Subtotal$1,392 $1,113 $786 
Reconciling items to net earnings
Unallocated costs (1)
(286)1 (146)
Depreciation and amortization(378)(289)(254)
Interest expense, net(123)(110)(126)
Income tax expense(86)(130)(39)
Net earnings$519 $585 $221 
(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,
202220212020
Impairment charges and gain/loss on sale of assets(a)
$(31)$(9)$(5)
Stock-based compensation(54)(51)(48)
Restructuring and other special items (b)
(55)(31)(42)
Gain (loss) on sale of subsidiary (c)
1 182 (1)
Other expense, net (e)
(28)(3)(8)
Non-allocated corporate costs, net(119)(87)(42)
Total unallocated costs$(286)$1 $(146)
(a)    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 respiratory and specialty platform and obsolete equipment in its Biologics platform.
(b)    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.
Restructuring and other special items for the fiscal year ended June 30, 2021 include transaction and integration costs associated with the Anagni, Italy facility acquisition and the MaSTherCell, Skeletal, Delphi, and Acorda transactions, in addition to restructuring costs associated with the closure of the Company's Clinical Supply Services facility in Bolton, U.K.
Restructuring and other special items during the fiscal year ended June 30, 2020 include transaction and integration costs associated with the Company’s cell and gene therapy acquisitions and the disposal of a facility in Australia.
(c) Gain on sale of subsidiary for the fiscal years ended June 30, 2022 and 2021 is affiliated with the sale of the Blow-Fill-Seal Business. Loss on sale of subsidiary for the fiscal year ended June 30, 2020 is affiliated with the disposal of a facility in Australia.
(d) Refer to Note 15, Other expense, net, for details of financing charges and foreign currency translation adjustments recorded within other 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, 2022June 30, 2021
Biologics$5,734 $4,973 
Softgel and Oral Technologies2,685 1,604 
Oral and Specialty Delivery1,006 1,269 
Clinical Supply Services700 483 
Corporate and eliminations382 783 
Total assets$10,507 $9,112 
Capital Expenditures
Fiscal Year Ended June 30,
(Dollars in millions)202220212020
Biologics$453 $516 $330 
Softgel and Oral Technologies109 61 54 
Oral and Specialty Delivery57 64 55 
Clinical Supply Services17 26 10 
Corporate30 19 17 
Total capital expenditures$666 $686 $466 
The following table presents long-lived assets(1) by geographic area:  
Long-Lived Assets (1)
(Dollars in millions)June 30, 2022June 30, 2021
United States$2,267 $1,867 
Europe747 541 
Other113 116 
Total$3,127 $2,524 
(1)     Long-lived assets include property, plant, and equipment, net of accumulated depreciation.
 [1]
[1] Refer to Note 15, Other expense, net, for details of financing charges and foreign currency translation adjustments recorded within other expense, net.