Segment Information

9 Months Ended

Mar. 31, 2017

Segment Reporting [Abstract]

Segment Information

SEGMENT INFORMATION

Prior to July 1, 2016, the Company’s operations were managed in seven operating segments: the United States, United Kingdom, Tilda, Hain Pure Protein Corporation (“HPPC”), EK Holdings, Inc. (“Empire”), Canada and Europe. The United States operating segment was also a reportable segment. The United Kingdom and Tilda operating segments were reported in the aggregate as “United Kingdom”, while HPPC and Empire were reported in the aggregate as “Hain Pure Protein,” and Canada and Europe were combined and reported as “Rest of World.”

Effective July 1, 2016, due to changes to the Company’s internal management and reporting structure resulting from the formation of Cultivate, certain brands previously included within the United States operating segment were moved to a new operating segment called Cultivate. As a result, the Company is now managed in eight operating segments: the United States (excluding Cultivate), United Kingdom, Tilda, HPPC, Empire, Canada, Europe and Cultivate. The United States, excluding Cultivate, is its own reportable segment. Cultivate is now combined with Canada and Europe and reported within the “Rest of World” reportable segment. There were no changes to the United Kingdom and Hain Pure Protein reportable segments. The prior period segment information contained below has been adjusted to reflect the Company’s new operating and reporting structure. See Note 1, Business, for additional details surrounding the formation of Cultivate.

Net sales and operating income are the primary measures used by the Company’s Chief Operating Decision Maker (“CODM”) to evaluate segment operating performance and to decide how to allocate resources to segments. The CODM is the Company’s Chief Executive Officer. Expenses related to certain centralized administration functions that are not specifically related to an operating segment are included in “Corporate and Other.” Corporate and Other expenses are comprised mainly of the compensation and related expenses of certain of the Company’s senior executive officers and other selected employees who perform duties related to the entire enterprise, as well as expenses for certain professional fees, facilities, and other items which benefit the Company as a whole. Additionally, acquisition related expenses, restructuring and integration charges and other, along with accounting review costs are included in “Corporate and Other.” Expenses that are managed centrally but can be attributed to a segment, such as employee benefits and certain facility costs, are allocated based on reasonable allocation methods. Assets are reviewed by the CODM on a consolidated basis and therefore are not reported by operating segment.

The following tables set forth financial information about each of the Company’s reportable segments. Transactions between reportable segments were insignificant for all periods presented.

	Three Months Ended March 31,						Nine Months Ended March 31,
	2017			2016			2017			2016
Net Sales:
United States	$	308,539		$	325,384		$	882,273		$	942,700
United Kingdom	181,940			206,160			573,541			558,269
Hain Pure Protein	117,765			112,213			387,413			379,459
Rest of World	98,319			92,906			284,799			267,399
	$	706,563		$	736,663		$	2,128,026		$	2,147,827
Operating Income:
United States	$	46,838		$	56,381		$	111,453		$	148,828
United Kingdom	11,545			15,826			22,792			44,093
Hain Pure Protein	(2,554		)	2,427			(31		)	31,078
Rest of World	9,362			8,132			21,894			17,646
	$	65,191		$	82,766		$	156,108		$	241,645
Corporate and Other (1)	(18,124		)	(11,618		)	(53,890		)	(26,147		)
	$	47,067		$	71,148		$	102,218		$	215,498

(1) Includes $9,207 and $5,317 of accounting review costs and acquisition related expenses, restructuring and integration charges and other for the three months ended March 31, 2017 and 2016, respectively. Such expenses for the nine months ended March 31, 2017 and 2016 were $22,741 and $9,909, respectively.

The Company’s long-lived assets, which primarily represent net property, plant and equipment, by geographic area are as follows:

	March 31, 2017		June 30, 2016
United States	$	195,605	$	193,192
United Kingdom	178,074		196,271
All Other	54,848		53,260
	$	428,527	$	442,723

The Company’s net sales by geographic region, which are generally based on the location of the Company’s subsidiary, are as follows:

	Three Months Ended March 31,				Nine Months Ended March 31,
	2017		2016		2017		2016
United States	$	423,360	$	436,110	$	1,255,539	$	1,314,620
United Kingdom	200,976		226,267		633,439		619,798
All Other	82,227		74,286		239,048		213,409
Total	$	706,563	$	736,663	$	2,128,026	$	2,147,827