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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 ______________________________
FORM 10-Q
______________________________ 
ýQUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 2022
or
¨TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
001-36587
(Commission File Number)
ctlt-20220331_g1.jpg
 _____________________________
Catalent, Inc.
(Exact name of registrant as specified in its charter)
_____________________________ 
     Delaware  20-8737688
        (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.)
       14 Schoolhouse Road, 
                   Somerset,NJ08873
    (Address of principal executive offices)_______
 (Zip code)
(732) 537-6200
Registrant's telephone number, including area code
____________________________________ 
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes ¨  No
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).       Yes ¨  No
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer
Accelerated filer
¨
Non-accelerated filer
¨
Smaller reporting company
¨
Emerging growth company
¨
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).       ¨ Yes     No 

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading symbols(s)Name of each exchange on which registered
Common StockCTLTNew York Stock Exchange

On April 26, 2022, there were 179,213,237 shares of the Registrant's common stock, par value $0.01 per share, issued and outstanding.


CATALENT, INC.
Index to Form 10-Q
For the Three and Nine Months Ended March 31, 2022
 
ItemPage
Part I.
Item 1.
Item 2.
Item 3.
Item 4.
Part II.
Item 1.
Item 1A.
Item 2.
Item 3.
Item 4.
Item 5.
Item 6.

2

Special Note Regarding Forward-Looking Statements
In addition to historical information, this Quarterly Report on Form 10-Q may contain “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), which are subject to the “safe harbor” created by those sections. All statements, other than statements of historical facts, included in this Quarterly Report on Form 10-Q are forward-looking statements. In some cases, you can identify these forward-looking statements by the use of words such as “outlook,” “believes,” “expects,” “potential,” “continues,” “may,” “will,” “should,” “could,” “seeks,” “approximately,” “predicts,” “intends,” “plans,” “estimates,” “anticipates” or the negative version of these words or other comparable words.
These statements are based on assumptions and assessments made by our management in light of their experience and their perception of historical trends, current conditions, expected future developments, and other factors they believe to be appropriate. Any forward-looking statement is subject to various risks and uncertainties. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements.
Some of the factors that may cause actual results, developments and business decisions to differ materially from those contemplated by such forward-looking statements include, but are not limited to, those described under the section entitled “Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended June 30, 2021 (the “Fiscal 2021 10-K”) and others, which are summarized below:
Risks Relating to Our Business and the Industry in Which We Operate

Our business, financial condition, and operations may be adversely affected by global health developments, including the pandemic resulting from the SARS-Co-V-2 strain of coronavirus and its variants (“COVID-19”).
The continually evolving nature of the COVID-19 pandemic and the resulting public health response, including the changing demand for various COVID-19 vaccines and treatments from both patients and governments around the world, may affect sales of our products and services, including the COVID-19 products we manufacture.
We participate in a highly competitive market, and increased competition may adversely affect our business.
The demand for our offerings depends in part on our customers’ research and development and the clinical and market success of their products.
We are subject to product and other liability risks that could exceed our anticipated costs or adversely affect our results of operations, financial condition, liquidity, and cash flows.
We are a part of the highly regulated healthcare industry, subject to stringent regulatory standards and other applicable laws and regulations, which can change unexpectedly and may adversely impact our business.
Any failure to implement fully, monitor, and improve our quality management strategy could lead to quality or safety issues and expose us to significant costs, potential liability, and adverse publicity.
If we cannot keep pace with rapid technological advances, our services may become uncompetitive or obsolete.
Any failure to protect or maintain our intellectual property may adversely affect our competitive edge and result in loss of revenue and reputation.
Future price fluctuations, material shortages of raw materials, or changes in healthcare policies may have an adverse effect on our results of operations and financial conditions.
Our ability to use our net operating loss carryforwards and certain other tax attributes may be limited.
We may be unable to attract or retain key personnel.
We may be unsuccessful in integrating our acquisitions, and we may expend substantial amounts of cash and incur debt in making acquisitions.
Our global operations are subject to economic and political risks, which could affect the profitability of our operations or require costly changes to our procedures.
As a global enterprise, fluctuations in the exchange rate of the United States ("U.S.") dollar, our reporting currency, against other currencies could have a material adverse effect on our financial performance and results of operations.
Tax legislative or regulatory initiatives, new interpretations or developments concerning existing tax laws, or challenges to our tax positions could adversely affect our results of operations and financial condition.
We use advanced information and communication systems to run our operations, compile and analyze financial and operational data, and communicate among our employees, customers, and counter-parties, and the risks generally associated with information and communications systems could adversely affect our results of operations. We are
3

continuously working to install new, and upgrade existing systems and provide employee awareness training around phishing, malware, and other cyber security risks to enhance the protections available to us, but such protections may be inadequate to address malicious attacks or inadvertent compromises of data security.
Cell and gene therapies are relatively new modes of treatment and subject to changing public opinion, continuing research, and increased regulatory scrutiny, each of which may affect our customers' ability to conduct their business, or obtain approvals for their therapies, and thereby adversely affect our cell or gene therapy offerings.
Future revenue may be subject to increased volatility because a material portion of our net revenue is derived from a limited number of customers.

Risks Relating to Our Indebtedness

Our substantial indebtedness could limit our ability to operate our business and to finance future operations or acquisitions that would enhance our growth.
Our debt agreements contain restrictions that may limit our flexibility in conducting certain current and future operations.
We may not be able to pay our indebtedness when it becomes due.
Our current and potential future use of derivative financial instruments may expose us to economic losses in the event of price or currency fluctuations.

Risks Relating to Ownership of Our Common Stock

Our stock price has historically been and may continue to be volatile.
Because we have no plan to pay cash dividends on our common stock, par value $0.01 (the “Common Stock”) for the foreseeable future, receiving a return on an investment in our Common Stock may require a sale for a net price greater than was paid for it.
Provisions in our organizational documents could delay or prevent a change of control.

We caution you that the risks, uncertainties, and other factors referenced above may not contain all of the risks, uncertainties, and other factors that are important to you. In addition, we cannot assure you that we will realize the results, benefits, or developments that we expect or anticipate or, even if substantially realized, that they will result in the consequences or affect us or our business in the way expected. There can be no assurance that (i) we have correctly measured or identified all of the factors affecting our business or the extent of these factors’ likely impact, (ii) the available information with respect to these factors on which such analysis is based is complete or accurate, (iii) such analysis is correct, or (iv) our strategy, which is based in part on this analysis, will be successful. All forward-looking statements in this report apply only as of the date of this report or as of the date they were made and we undertake no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments, or otherwise, except as required by law.
Social Media
We use our website (catalent.com), our corporate Facebook page (https://facebook.com/CatalentPharmaSolutions), and our corporate Twitter account (@catalentpharma) as channels for the distribution of information. The information we post through these channels may be deemed material. Accordingly, investors should monitor these channels, in addition to following our press releases, Securities and Exchange Commission (“SEC”) filings, and public conference calls and webcasts. The contents of our website and social media channels are not, however, a part of this report.
4

PART I.    FINANCIAL INFORMATION

ITEM 1.     FINANCIAL STATEMENTS

Catalent, Inc.
Consolidated Statements of Operations
(Unaudited; dollars in millions, except per share data)

Three Months Ended  
March 31,
Nine Months Ended  
March 31,
2022202120222021
Net revenue$1,273 $1,053 $3,515 $2,810 
Cost of sales850 687 2,363 1,897 
Gross margin423 366 1,152 913 
Selling, general, and administrative expenses207 173 618 503 
Gain on sale of subsidiary (184)(1)(184)
Other operating expense5 8 25 17 
Operating earnings211 369 510 577 
Interest expense, net33 27 91 78 
Other expense, net2 25 25 5 
Earnings before income taxes 176 317 394 494 
Income tax expense35 85 63 91 
Net earnings141 232 331 403 
Less: Net earnings attributable to preferred shareholders (15)(15)(43)
Net earnings attributable to common shareholders$141 $217 $316 $360 
Earnings per share:
Basic
Net earnings$0.78 $1.27 $1.81 $2.15 
Diluted
Net earnings$0.78 $1.26 $1.79 $2.12 











The accompanying notes are an integral part of these unaudited consolidated financial statements.
5

Catalent, Inc.
Consolidated Statements of Comprehensive Income
(Unaudited; dollars in millions)


Three Months Ended  
March 31,
Nine Months Ended  
March 31,
2022202120222021
Net earnings$141 $232 $331 $403 
Other comprehensive (loss) income, net of tax
Foreign currency translation adjustments(22) (54)55 
Pension and other post-retirement adjustments1 1 2 1 
Net change in marketable securities(1) (2) 
Derivatives and hedges17 5 21 6 
Other comprehensive (loss) income, net of tax(5)6 (33)62 
Comprehensive income $136 $238 $298 $465 






















The accompanying notes are an integral part of these unaudited consolidated financial statements.
6

Catalent, Inc.
Consolidated Balance Sheets
(Unaudited; in millions, except share and per share data)
 
March 31,
2022
June 30,
2021
ASSETS
Current assets:
Cash and cash equivalents $786 $896 
Trade receivables, net of allowance for credit losses of $28 and $12, respectively
932 1,012 
Inventories676 563 
Prepaid expenses and other 537 376 
Marketable securities94 71 
Total current assets 3,025 2,918 
Property, plant, and equipment, net of accumulated depreciation of $1,308 and $1,179, respectively
2,820 2,524 
Other assets:
Goodwill3,012 2,519 
Other intangibles, net1,097 817 
Deferred income taxes68 66 
Other long-term assets300 268 
Total assets $10,322 $9,112 
LIABILITIES, REDEEMABLE PREFERRED STOCK, AND SHAREHOLDERS' EQUITY
Current liabilities:
Current portion of long-term obligations and other short-term borrowings $29 $75 
Accounts payable 401 385 
Other accrued liabilities 616 736 
Total current liabilities 1,046 1,196 
Long-term obligations, less current portion 4,157 3,166 
Pension liability122 137 
Deferred income taxes211 164 
Other liabilities154 175 
Commitment and contingencies (see Note 15)— — 
Total liabilities5,690 4,838 
Redeemable preferred stock, $0.01 par value; 0 and 1 million shares authorized at March 31, 2022 and June 30, 2021, respectively; 0 and 0.4 million shares issued and outstanding at March 31, 2022 and June 30, 2021, respectively 359 
Shareholders' equity:
Common stock, $0.01 par value; 1.00 billion shares authorized at March 31, 2022 and June 30, 2021; 179 million and 171 million issued and outstanding at March 31, 2022 and June 30, 2021, respectively2 2 
Preferred stock, $0.01 par value; 100 million shares and 99 million shares authorized at March 31, 2022 and June 30, 2021, respectively; 0 shares issued and outstanding at March 31, 2022 and June 30, 2021  
Additional paid in capital4,630 4,205 
Retained earnings350 25 
Accumulated other comprehensive loss(350)(317)
Total shareholders' equity4,632 3,915 
Total liabilities, redeemable preferred stock, and shareholders' equity$10,322 $9,112 
The accompanying notes are an integral part of these unaudited consolidated financial statements.
7

Catalent, Inc.
Consolidated Statement of Changes in Shareholders' Equity
(Unaudited; dollars in millions, except share data in thousands)
 

Three Months Ended March 31, 2022
Shares of Common StockCommon StockAdditional Paid in CapitalRetained EarningsAccumulated Other Comprehensive LossTotal Shareholders' EquityRedeemable Preferred Stock
Balance at December 31, 2021179,050 $2 $4,615 $209 $(345)$4,481 $ 
Share issuances related to stock-
     based compensation
97  — — —  — 
Stock-based compensation— — 10 — — 10 — 
Exercise of stock options— — 2 — — 2 — 
Employee stock purchase plan— — 3 — — 3 — 
Net earnings— — — 141 — 141 — 
Other comprehensive income, net
of tax
— — — — (5)(5)— 
Balance at March 31, 2022179,147 $2 $4,630 $350 $(350)$4,632 $ 


Three Months Ended March 31, 2021
Shares of Common StockCommon StockAdditional Paid in CapitalAccumulated DeficitAccumulated Other Comprehensive LossTotal Shareholders' EquityRedeemable Preferred Stock
Balance at December 31, 2020170,133 $2 $4,161 $(377)$(330)$3,456 $359 
Share issuances related to stock-
     based compensation
166   — —  — 
Stock-based compensation— — 8 — — 8 — 
Cash paid, in lieu of equity, for
     tax withholding
— — (1)— — (1)— 
Exercise of stock options— — 15 — — 15 — 
Employee stock purchase plan— — 2 — — 2 — 
Preferred dividend ($12.50 per
     share of redeemable preferred
     stock)
— — — (5)— (5)— 
Net earnings— — — 232 — 232 — 
Other comprehensive income, net
       of tax
— — — — 6 6 — 
Balance at March 31, 2021170,299 $2 $4,185 $(150)$(324)$3,713 $359 







The accompanying notes are an integral part of these unaudited consolidated financial statements.
8

Catalent, Inc.
Consolidated Statement of Changes in Shareholders' Equity
(Unaudited; dollars in millions, except share data in thousands)


Nine Months ended March 31, 2022
Shares of Common StockCommon StockAdditional Paid in CapitalRetained EarningsAccumulated Other Comprehensive LossTotal Shareholders' EquityRedeemable Preferred Stock
Balance at June 30, 2021170,549 $2 $4,205 $25 $(317)$3,915 $359 
Share issuances related to stock-
     based compensation
780  — — —  — 
Conversion of redeemable
     preferred stock
7,818  362 — — 362 (359)
Stock-based compensation— — 42 — — 42 — 
Cash paid, in lieu of equity, for
     tax withholding
— — (9)— — (9)— 
Exercise of stock options— — 21 — — 21 — 
Employee stock purchase plan— — 9 — — 9 — 
Preferred dividend ($12.50 per
     share of redeemable preferred
     stock)
— — — (6)— (6)— 
Net earnings— — — 331 — 331 — 
Other comprehensive loss, net of
tax
— — — — (33)(33)— 
Balance at March 31, 2022179,147 $2 $4,630 $350 $(350)$4,632 $ 

Nine Months Ended March 31, 2021

Shares of Common StockCommon StockAdditional Paid in CapitalAccumulated DeficitAccumulated Other Comprehensive LossTotal Shareholders' EquityRedeemable Preferred Stock
Balance at June 30, 2020162,788 $2 $3,818 $(535)$(386)$2,899 $607 
Equity offering, sale of common
     stock
1,163 — 82 — — 82 — 
Share issuances related to stock-
     based compensation
956 — — — —  — 
Conversion of redeemable
     preferred stock
5,392  253 — — 253 (248)
Stock-based compensation— — 38 — — 38 — 
Cash paid, in lieu of equity, for
     tax withholding
— — (27)— — (27)— 
Exercise of stock options— — 15 — — 15 — 
Employee stock purchase plan— — 6 — — 6 — 
Preferred dividend ($12.50 per
     share of redeemable preferred
     stock)
— — — (18)— (18)— 
Net earnings— — — 403 — 403 — 
Other comprehensive income,
net of tax
— — — — 62 62 — 
Balance at March 31, 2021170,299 $2 $4,185 $(150)$(324)$3,713 $359 



The accompanying notes are an integral part of these unaudited consolidated financial statements.
9

Catalent, Inc.
Consolidated Statements of Cash Flows
(Unaudited; dollars in millions)
Nine Months Ended March 31,
20222021
CASH FLOWS FROM OPERATING ACTIVITIES:
Net earnings$331 $403 
Adjustments to reconcile net earnings to net cash from operations:
Depreciation and amortization278 216 
Non-cash foreign currency transaction loss (gain), net25 (7)
Amortization of debt issuance costs
5 9 
Impairments charges and loss (gain) on sale of assets
21 8 
Gain on sale of subsidiary(1)(184)
Financing-related charges4 17 
Gain on derivative instrument(2)(16)
Stock-based compensation
42 38 
Provision for deferred income taxes13 18 
Provision for bad debts and inventory14 40 
Change in operating assets and liabilities:
Decrease (increase) in trade receivables60 (1)
Increase in inventories(93)(240)
(Decrease) increase in accounts payable(34)37 
Other assets/accrued liabilities, net—current and non-current
(293)(39)
Net cash provided by operating activities370 299 
CASH FLOWS USED IN INVESTING ACTIVITIES:
Acquisition of property, equipment, and other productive assets(425)(497)
Purchases of marketable securities(25)(75)
(Settlement on) proceeds from sale of subsidiaries, net(3)287 
Payment for acquisitions, net of cash acquired(1,033)(147)
Payment made for investments(4)(4)
Net cash used in investing activities(1,490)(436)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from borrowings1,100 167 
Payments related to long-term obligations(72)(55)
Financing fees paid
(15)(18)
Dividends paid(4)(18)
Proceeds from sale of common stock, net 82 
Cash paid, in lieu of equity, for tax-withholding obligations(9)(27)
Exercise of stock options21 22 
Other financing activities9 6 
Net cash provided by financing activities1,030 159 
Effect of foreign currency exchange on cash and cash equivalents(20)13 
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS(110)35 
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD896 953 
CASH AND CASH EQUIVALENTS AT END OF PERIOD$786 $988 
SUPPLEMENTARY CASH FLOW INFORMATION:
Interest paid$93 $97 
Income taxes paid, net$40 $25 

The accompanying notes are an integral part of these unaudited consolidated financial statements.
10

Catalent, Inc.
Notes to Unaudited Consolidated Financial Statements
1.    BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Business
Catalent, Inc. (Catalent or the Company) directly and wholly owns PTS Intermediate Holdings LLC (Intermediate Holdings). Intermediate Holdings directly and wholly owns Catalent Pharma Solutions, Inc. (Operating Company). The financial results of Catalent are comprised of the financial results of Operating Company and its subsidiaries on a consolidated basis.
Basis of Presentation
The accompanying unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (“U.S. GAAP) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and notes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. Operating results for the nine months ended March 31, 2022 are not necessarily indicative of the results that may be expected for the year ending June 30, 2022. The consolidated balance sheet at June 30, 2021 has been derived from the audited consolidated financial statements at that date but does not include all of the information and footnotes required by U.S. GAAP for complete financial statements. For further information on the Company's accounting policies and footnotes, refer to the consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the year ended June 30, 2021 filed with the Securities and Exchange Commission (the “SEC”).

Foreign Currency Translation
The financial statements of the Company’s operations are generally measured using the local currency as the functional currency. Adjustments to translate the assets and liabilities of operations outside the U.S. into U.S. dollars are accumulated as a component of other comprehensive income utilizing period-end exchange rates. Since July 1, 2018, the Company has accounted for its Argentine operations as highly inflationary.
Depreciation
Depreciation expense was $66 million and $53 million for the three months ended March 31, 2022 and 2021, respectively. Depreciation expense was $188 million and $147 million for the nine months ended March 31, 2022 and 2021, respectively. Depreciation expense includes amortization of assets related to finance leases. The Company charges repairs and maintenance costs to expense as incurred.
Research and Development Costs
The Company expenses research and development costs as incurred. Research and development costs amounted to $6 million and $3 million for the three months ended March 31, 2022 and 2021, respectively. Research and development costs amounted to $18 million and $15 million for the nine months ended March 31, 2022 and 2021, respectively.
Marketable Securities

The Company classifies its marketable securities as available-for-sale, because it may sell certain of its marketable securities prior to the stated maturity for various reasons, including management of liquidity, credit risk, duration, relative return, and asset allocation. The Company determines the fair value of each marketable security in its portfolio at each period end and recognizes gains and losses in the portfolio in other comprehensive income. As of March 31, 2022, the amortized cost basis of marketable securities approximates fair value and all outstanding marketable securities mature within one year.
Recent Financial Accounting Standards
Recently Adopted Accounting Standards
In December 2019, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, which eliminates certain exceptions related to the incremental approach for intra-period allocation, deferred tax recognition requirement for changes in
11

equity method investments and non-U.S. subsidiaries, and methodology for calculating income taxes in an interim period. The guidance also simplifies certain aspects of the accounting for franchise taxes, the accounting for step-up in the tax basis of goodwill, and accounting for the change in the enacted change in tax laws or rates. The Company adopted the guidance on July 1, 2021. The adoption of this guidance did not have a material impact on the Company’s financial condition or results of operations.
In August 2018, the FASB issued ASU 2018-14, Compensation—Retirement Benefits—Defined Benefit Plans—General (Subtopic 715-20): Disclosure Framework—Changes to the Disclosure Requirements for Defined Benefit Plan, which removes certain disclosures and added additional disclosures around weighted-average interest crediting rates for cash balance plans and explanation for significant gains and losses related to change in the benefit obligation for the period. The Company adopted the guidance on July 1, 2021. The adoption of this guidance did not have a material impact on the Company’s consolidated financial statements.
New Accounting Standards Not Adopted as of March 31, 2022
In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides optional guidance to ease the potential burden in accounting for the discontinuation of a reference rate such as LIBOR, formerly known as the London Interbank Offered Rate, because of reference rate reform. The expedients and exceptions provided by the guidance do not apply to contract modifications made and hedging relationships entered into or evaluated after December 31, 2022. The ASU is effective for all entities as of March 12, 2020 through December 31, 2022. The Company is currently evaluating the impact of adopting this guidance on its consolidated financial statements.
2.    REVENUE RECOGNITION
The Company recognizes revenue in accordance with Accounting Standards Codification (“ASC”) 606, Revenue from Contracts with Customers. 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, 2022 and 2021, by type of activity and reporting segment (in millions):
Three Months Ended March 31, 2022BiologicsSoftgel and Oral TechnologiesOral and Specialty DeliveryClinical Supply ServicesTotal
Manufacturing & commercial product supply$200 $280 $90 $ $570 
Development services498 44 64  606 
Clinical supply services   101 101 
Total$698 $324 $154 $101 $1,277 
Inter-segment revenue elimination(4)
Combined net revenue$1,273 
Three Months Ended March 31, 2021BiologicsSoftgel and Oral TechnologiesOral and Specialty DeliveryClinical Supply ServicesTotal
Manufacturing & commercial product supply$148 $212 $118 $ $478 
Development services396 32 53  481 
Clinical supply services   100 100 
Total$544 $244 $171 $100 $1,059 
Inter-segment revenue elimination(6)
Combined net revenue$1,053 

12

Nine Months Ended March 31, 2022
BiologicsSoftgel and Oral TechnologiesOral and Specialty DeliveryClinical Supply ServicesTotal
Manufacturing & commercial product supply$503 $776 $274 $ $1,553 
Development services1,379 120 182  1,681 
Clinical supply services   296 296 
Total$1,882 $896 $456 $296 $3,530 
Inter-segment revenue elimination(15)
Combined net revenue$3,515 

Nine Months Ended March 31, 2021
BiologicsSoftgel and Oral TechnologiesOral and Specialty DeliveryClinical Supply ServicesTotal
Manufacturing & commercial product supply$362 $616 $335 $ $1,313 
Development services963 95 165  1,223 
Clinical supply services   286 286 
Total$1,325 $711 $500 $286 $2,822 
Inter-segment revenue elimination(12)
Combined net revenue$2,810 

The following table allocates revenue by the location where the goods were made or the service performed:

Three Months Ended  
March 31,
Nine Months Ended  
March 31,
(Dollars in millions)2022202120222021
United States$847 $670 $2,270 $1,722 
Europe3733451,095 955 
Other8062235 201 
Elimination of revenue attributable to multiple locations(27)(24)(85)(68)
Total$1,273 $1,053 $3,515 $2,810 
13


Contract Liabilities
Contract liabilities relate to cash consideration that the Company receives in advance of satisfying the related performance obligations. The contract liabilities balance (current and non-current) as of March 31, 2022 and June 30, 2021 are as follows:
(Dollars in millions)
Balance at June 30, 2021$321 
Balance at March 31, 2022$198 
Revenue recognized in the period from amounts included in contracts liability at the beginning of the period:$