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 Rest of World. 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, Description of Business and Basis of Presentation, 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, impairment charges, and 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.



	Fiscal Years ended June 30,
	2017			2016			2015
Net Sales: ⁽¹⁾
United States	$	1,191,262		$	1,249,123		$	1,253,156
United Kingdom	768,301			774,877			722,830
Hain Pure Protein	509,606			492,510			337,197
Rest of World	383,942			368,864			296,430
	$	2,853,111		$	2,885,374		$	2,609,613

Operating Income:
United States	$	157,506		$	203,481		$	180,937
United Kingdom	39,749			56,000			44,985
Hain Pure Protein	1,382			31,558			28,685
Rest of World	32,010			27,898			22,327
	230,647			318,937			276,934
Corporate and Other ⁽²⁾	(119,842		)	(168,577		)	(43,072		)
	$	110,805		$	150,360		$	233,862

(1)

One of our customers accounted for approximately 10% of our consolidated net sales for the fiscal years ended June 30, 2017, 2016 and 2015, respectively, which were primarily related to the United States and United Kingdom segments. A second customer accounted for approximately, 9%, 10% and 11% of our consolidated net sales for the fiscal years ended June 30, 2017, 2016 and 2015, respectively, which were primarily related to the United States segment.

(2)

Corporate and Other includes $10,388, $12,065 and $7,244 of acquisition related expenses, restructuring and integration charges for the fiscal years ended June 30, 2017, 2016 and 2015, respectively. Corporate and Other also includes an impairment charge of $14,079 ($7,579 related to the United Kingdom segment and $6,500 related to the United States segment) related to certain of the Company’s tradenames, a $26,373 impairment charge primarily related to long-lived assets associated with the exit of certain portions of our own-label chilled desserts business in the United Kingdom segment and $29,562 of accounting review costs for the fiscal year ended June 30, 2017. Additionally, Corporate and Other includes goodwill impairment charges of $84,548 for the fiscal year ended June 30, 2016 related to the United Kingdom segment, an impairment charge of $39,724 ($20,932 related to the United Kingdom segment and $18,792 related to the United States segment) related to certain of the Company’s tradenames and a $3,476 impairment charge related to long-lived assets associated with the divestiture of certain portions of our own-label juice business in the United Kingdom. Lastly, Corporate and Other includes a long-lived asset impairment charge of $1,004 related to leasehold improvements due to the relocation of our New York based BluePrint manufacturing facility for the fiscal year ended June 30, 2015.

The Company’s net sales by product category are as follows:



	Fiscal Year ended June 30,
	2017		2016		2015
Grocery	$	1,743,860	$	1,800,640	$	1,724,675
Poultry/Protein	509,606		492,510		337,197
Snacks	312,784		307,797		291,719
Personal Care	176,408		171,669		135,627
Tea	110,453		112,758		120,395
Total	$	2,853,111	$	2,885,374	$	2,609,613

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



	Fiscal Year ended June 30,
	2017		2016		2015
United States	$	1,677,294	$	1,729,751	$	1,582,553
United Kingdom	851,757		859,183		803,470
All Other	324,060		296,440		223,590
Total	$	2,853,111	$	2,885,374	$	2,609,613

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



	Fiscal Year ended June 30,
	2017		2016
United States	$	194,348	$	193,192
United Kingdom	165,396		196,271
All Other	63,330		53,260
Total	$	423,074	$	442,723