TRANSFORMATION PROGRAM

3 Months Ended

Sep. 30, 2023

Restructuring and Related Activities [Abstract]

During the first quarter of fiscal year 2024, we initiated a multi-year growth and transformation program (the “Hain Reimagined Program”). The program is intended to optimize the Company’s portfolio, improve underlying profitability and increase its flexibility to invest in targeted growth initiatives, brand building and other capabilities critical to delivering future growth. The savings initiatives are expected to impact the Company’s reportable segments and Corporate and Other.

Implementation of the Hain Reimagined Program is expected to be completed by the end of the 2027 fiscal year and comprised of: contract termination costs, asset write-downs, employee-related costs and other transformation-related expenses.

For the three months ended September 30, 2023, expenses associated with the Company’s restructuring program in the amount of $6,403 and $3,320, respectively, were recorded in Productivity and transformation costs and Cost of sales on the Consolidated Statements of Operations and impacted reportable segments and Corporate and Other as follows:


	Three Months Ended September 30, 2023


Corporate and Other	$	5,770
North America	3,358
International	595


	$	9,723

The Company expects to pay the remaining accrued restructuring costs during the next 12 months. The following table displays the activities and liability balances relating to the restructuring program for the period ended as of September 30, 2023:


	Charges		Amounts Paid		Non-cash settlements/Adjustments2		Balance at September 30, 2023
Employee-related costs1	$	1,115	$	(46)	—		$	1,069
Contract termination costs	1,799		(1,528)		—		271
Asset write-downs2	1,521		—		(1,521)		—
Other transformation-related expenses3	5,288		(16)		—		5,272
	$	9,723	$	(1,590)	$	(1,521)	$	6,612

1Employee-related expenses include $491 severance related to executive officer succession.

2Represents non-cash asset write-downs, including accelerated depreciation and asset impairment.

3Other transformation-related expenses primarily include consultancy charges.

The liability balance as of September 30, 2023 is included within Accrued expenses and other current liabilities on the Company’s Consolidated Balance Sheets.