SEGMENT INFORMATION

Beginning in the third quarter of fiscal 2018, the Hain Pure Protein operations were classified as discontinued operations as discussed in “Note 5, Discontinued Operations.” Therefore, segment information presented excludes the results of Hain Pure Protein. As a result, the Company is now managed in seven operating segments: the United States, United Kingdom, Tilda, Ella’s Kitchen UK, Europe, Canada and Hain Ventures (formerly known as Cultivate).

The prior period segment information contained below has been adjusted to reflect the Company’s revised 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, certain Project Terra 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,
	2018			2017			2018			2017
Net Sales:
United States	$	259,155		$	270,303		$	503,140		$	533,962
United Kingdom	225,338			238,201			443,915			460,646
Rest of World	99,663			107,728			197,934			210,843
	$	584,156		$	616,232		$	1,144,989		$	1,205,451

Operating (Loss)/Income:
United States	$	7,180		$	21,861		$	9,350		$	42,722
United Kingdom	14,655			13,598			18,675			23,199
Rest of World	8,374			10,535			16,210			19,532
	$	30,209		$	45,994		$	44,235		$	85,453
Corporate and Other ^(a)	(45,596		)	(15,029		)	(83,726		)	(25,247		)
	$	(15,387	)	$	30,965		$	(39,491	)	$	60,206

(a) For the three months ended December 31, 2018, Corporate and Other includes $10,148 of Chief Executive Officer Succession Plan expense, net, $5,506 of Project Terra costs and other and $920 of accounting review and remediation costs. Corporate and Other for the three months ended December 31, 2018 also includes impairment charges of $17,900 ($11,300 related to the United States segment, $2,787 related to the United Kingdom segment and $3,813 in Rest of World) related to certain of the Company’s tradenames. For the three months ended December 31, 2017, Corporate and Other includes $641 of Project Terra costs and other $4,451 of accounting review and remediation costs.

For the six months ended December 31, 2018, Corporate and Other includes $29,701 of Chief Executive Officer Succession Plan expense, net, $13,483 of Project Terra costs and other and $4,334 of accounting review and remediation costs. Corporate and Other for the six months ended December 31, 2018 also includes impairment charges of $17,900 ($11,300 related to the United States segment, $2,787 related to the United Kingdom segment and $3,813 in Rest of World) related to certain of the Company’s tradenames. For the six months ended December 31, 2017, Corporate and Other included $3,254 of Project Terra costs and other and net expense of $3,093 of accounting review and remediation costs, net of insurance proceeds, consisting of $8,093 of costs incurred in the six months ended December 31, 2017 offset by insurance proceeds of $5,000.

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



	December 31, 2018		June 30, 2018
United States	$	108,930	$	99,650
United Kingdom	174,625		174,214
All Other	86,189		86,700
Total	$	369,744	$	360,564

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,
	2018		2017		2018		2017
United States	$	272,260	$	286,059	$	528,290	$	564,353
United Kingdom	225,338		238,201		443,915		460,646
All Other	86,558		91,972		172,784		180,452
Total	$	584,156	$	616,232	$	1,144,989	$	1,205,451