Transformation Program Hain Reimagined

12 Months Ended

Jun. 30, 2024

Restructuring and Related Activities [Abstract]

Transformation Program Hain Reimagined

18.TRANSFORMATION PROGRAM - HAIN REIMAGINED

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 fiscal year ended June 30, 2024, expenses associated with the Hain Reimagined Program in the amount of $27,741, $24,782, and $7,725, respectively, were recorded in productivity and transformation costs, intangibles and long-lived asset impairment, and cost of sales, respectively, on the consolidated statements of operations.

The table below sets forth expenses associated with the Hain Reimagined Program for the fiscal year ended June 30, 2024 by reportable segment and Corporate and Other.

	Fiscal Year Ended June 30, 2024
North America	$	32,775
Corporate and Other		20,753
International		6,720
	$	60,248

The following table displays the activities and liability balances relating to the Hain Reimagined Program for the period ended as of June 30, 2024. The Company expects to pay the remaining accrued restructuring costs during the next 12 months.

	Charges		Amounts Paid			Non-cash settlements/ Adjustments2			Balance at June 30, 2024
Employee-related costs1	$	7,012	$	(4,992	)	$	(35	)	$	1,985
Contract termination costs		5,439		(4,757	)		(335	)		347
Asset write-downs2		26,922		—			(26,922	)		—
Other transformation-related expenses3		20,875		(16,887	)		—			3,988
	$	60,248	$	(26,636	)	$	(27,292	)	$	6,320

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.