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 March 31,						Nine Months Ended March 31,
	2019			2018			2019			2018
Net Sales:
United States	$	266,445		$	281,052		$	769,585		$	815,013
United Kingdom	227,206			238,321			671,121			698,968
Rest of World	106,146			113,347			304,080			324,190
	$	599,797		$	632,720		$	1,744,786		$	1,838,171

Operating Income/(Loss):
United States	$	17,099		$	24,974		$	26,449		$	67,696
United Kingdom	18,147			13,863			36,822			37,062
Rest of World	10,868			11,059			27,078			30,591
	$	46,114		$	49,896		$	90,349		$	135,349
Corporate and Other ^(a)	(22,249		)	(20,642		)	(105,975		)	(45,889		)
	$	23,865		$	29,254		$	(15,626	)	$	89,460

(a) For the three months ended March 31, 2019, Corporate and Other includes $455 of Chief Executive Officer Succession Plan expense, net and $7,562 of Project Terra costs and other. For the three months ended March 31, 2018, Corporate and Other includes $4,175 of Project Terra costs and other $3,313 of accounting review and remediation costs.

For the nine months ended March 31, 2019, Corporate and Other includes $30,156 of Chief Executive Officer Succession Plan expense, net, $21,045 of Project Terra costs and other and $4,334 of accounting review and remediation costs. Corporate and Other for the nine months ended March 31, 2019 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 nine months ended March 31, 2018, Corporate and Other included $7,429 of Project Terra costs and other and net expense of $6,406 of accounting review and remediation costs, net of insurance proceeds, consisting of $11,406 of costs incurred in the nine months ended March 31, 2018 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:



	March 31, 2019		June 30, 2018
United States	$	115,243	$	99,650
United Kingdom	179,226		174,214
All Other	86,331		86,700
Total	$	380,800	$	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 March 31,				Nine Months Ended March 31,
	2019		2018		2019		2018
United States	$	279,609	$	296,635	$	807,899	$	860,987
United Kingdom	227,206		238,321		671,121		698,968
All Other	92,982		97,764		265,766		278,216
Total	$	599,797	$	632,720	$	1,744,786	$	1,838,171