TRANSFORMATION PROGRAM

6 Months Ended

Dec. 31, 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 is primarily comprised of: contract termination costs, asset write-downs, employee-related costs and other transformation-related expenses.

For the three months ended December 31, 2023, expenses associated with the Company’s restructuring program in the amount of $20,666, $6,869, and $3,113, respectively, were recorded in Impairment of long-lived assets, Productivity and transformation costs, and Cost of sales, respectively, on the Consolidated Statements of Operations.

For the six months ended December 31, 2023, expenses associated with the Company’s restructuring program in the amount of $20,666, $13,272, and $6,433, respectively, were recorded in Impairment of long-lived assets, Productivity and transformation costs, and Cost of sales, respectively, on the Consolidated Statements of Operations.

The table below sets forth expenses associated with the Company’s restructuring program for the three and six months ended December 31, 2023 by reportable segment and Corporate and Other.


	Three Months Ended December 31, 2023		Six Months Ended December 31, 2023



North America	$	25,093	$	28,451
Corporate and Other	5,067		10,837
International	488		1,083


	$	30,648	$	40,371

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 December 31, 2023:


	Charges		Amounts Paid		Non-cash settlements/ Adjustments2		Balance at December 31, 2023
Employee-related costs1	$	3,357	$	(723)	$	—	$	2,634
Contract termination costs	4,168		(4,168)		—		—
Asset write-downs2	22,806		—		(22,806)		—
Other transformation-related expenses3	10,040		(8,147)		—		1,893
	$	40,371	$	(13,038)	$	(22,806)	$	4,527

1Employee-related costs include $1,130 severance related to executive officer succession.

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

3Other transformation-related expenses primarily include consultancy charges.