SEGMENT INFORMATION

Prior to July 1, 2017, the Company’s operations were managed in eight operating segments: the United States, United Kingdom, Tilda, Hain Pure Protein Corporation (“HPPC”), EK Holdings, Inc. (“Empire”), Canada, Europe and Cultivate. 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, Europe and Cultivate were combined and reported as “Rest of World.”

Effective July 1, 2017, due to changes to the Company’s internal management and reporting structure, the United Kingdom operations of the Ella’s Kitchen^® brand, which was previously included within the United States reportable segment, was moved to the United Kingdom reportable segment. As a result, the Company is now managed in nine operating segments: the United States, United Kingdom, Tilda, Ella’s Kitchen UK, HPPC, Empire, Europe, Canada and Cultivate. Ella’s Kitchen UK is now combined with the United Kingdom and Tilda operating segments and is reported within the United Kingdom reportable segment. There were no changes to the Hain Pure Protein reportable segment or Rest of World. The prior period segment information contained below has been adjusted to reflect the Company’s new operating and reporting structure.

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 and remediation 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 December 31,						Six Months Ended December 31,
	2017			2016			2017			2016
Net Sales:
United States	$	270,303		$	278,640		$	533,962		$	532,872
United Kingdom	238,201			212,312			460,646			432,463
Hain Pure Protein	158,972			152,979			278,029			269,648
Rest of World	107,728			96,068			210,843			186,480
	$	775,204		$	739,999		$	1,483,480		$	1,421,463

Operating Income:
United States	$	21,861		$	39,928		$	42,722		$	58,722
United Kingdom	13,598			9,321			23,199			17,140
Hain Pure Protein	5,328			3,541			7,570			2,523
Rest of World	10,535			7,477			19,532			12,532
	$	51,322		$	60,267		$	93,023		$	90,917
Corporate and Other ^(a)	(15,029		)	(18,867		)	(25,247		)	(35,766		)
	$	36,293		$	41,400		$	67,776		$	55,151

(a) Includes $5,092 and $7,113 of accounting review and remediation costs, net of insurance proceeds and acquisition related expenses, restructuring and integration charges for the three months ended December 31, 2017 and 2016, respectively. Such expenses for the six months ended December 31, 2017 and 2016 were $6,347 and $13,534, respectively.

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



	December 31, 2017		June 30, 2017
United States	$	187,960	$	194,348
United Kingdom	173,299		165,396
All Other	79,161		63,330
Total	$	440,420	$	423,074

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



	Three Months Ended December 31,				Six Months Ended December 31,
	2017		2016		2017		2016
United States	$	445,031	$	446,412	$	842,382	$	832,180
United Kingdom	238,201		212,312		460,646		432,463
All Other	91,972		81,275		180,452		156,820
Total	$	775,204	$	739,999	$	1,483,480	$	1,421,463