TRANSFORMATION PROGRAM

9 Months Ended

Mar. 31, 2024

Restructuring and Related Activities [Abstract]

During the first quarter of fiscal year 2024, the Company initiated a multi-year growth, transformation and restructuring program (the “Hain Reimagined Program”). The Hain Reimagined 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 March 31, 2024, expenses associated with the Company’s restructuring program in the amount of $1,353, $7,175, and $1,329, respectively, were recorded in Intangibles and long-lived asset impairment, Productivity and transformation costs, and Cost of sales, respectively, on the Consolidated Statements of Operations.

For the nine months ended March 31, 2024, expenses associated with the Company’s restructuring program in the amount of $22,019, $20,447, and $7,762, respectively, were recorded in Intangibles and long-lived asset impairment, 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 nine months ended March 31, 2024 by reportable segment and Corporate and Other.


	Three Months Ended March 31, 2024		Nine Months Ended March 31, 2024



North America	$	2,007	$	30,458
Corporate and Other	5,799		16,636
International	2,051		3,134


	$	9,857	$	50,228

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 March 31, 2024:


	Charges		Amounts Paid		Non-cash settlements/ Adjustments2		Balance at March 31, 2024
Employee-related costs1	$	5,653	$	(2,737)	$	—	$	2,916
Contract termination costs	5,129		(4,677)		(354)		98
Asset write-downs2	24,159		—		(24,159)		—
Other transformation-related expenses3	15,287		(13,316)		—		1,971
	$	50,228	$	(20,730)	$	(24,513)	$	4,985

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 related to reorganization of global functions and related personnel resource requirements, and rationalizing sourcing and supply chain processes.