Segment Information | SEGMENT INFORMATION Prior to July 1, 2019, the Company’s operations were managed in seven operating segments: the United States, United Kingdom, Tilda, Ella’s Kitchen UK, Europe, Canada and Hain Ventures. For segment reporting purposes, based on economic similarity as outlined within Accounting Standards Codification ("ASC") 280, Segment Reporting , the Company elected to combine the United Kingdom, Tilda and Ella’s Kitchen UK operating segments into one reportable segment known as United Kingdom. Additionally, the Canada, Europe and Hain Ventures operating segments were combined as the Rest of World reportable segment. Separately, the United States operating segment comprised its own reportable segment. Effective July 1, 2019, the Company reassessed its segment reporting structure due to changes in how the Company’s CODM assesses the Company’s performance and allocates resources as a result of a change in the Company’s strategy, which includes creating synergies among the Company’s United States and Canada businesses, as well as among the Company’s international businesses in the United Kingdom and Europe. As a result, the Canada and Hain Ventures operating segments, which were included within the Rest of World reportable segment, were moved to the United States reportable segment and renamed the North America reportable segment. Additionally, the Europe operating segment, which was included in the Rest of World reportable segment, was combined with the United Kingdom reportable segment and renamed the International reportable segment. Accordingly, the Company now operates under two reportable segments: North America and International. Prior period segment information has been adjusted to reflect the Company’s new operating and reporting structure. Additionally, the Tilda operating segment was classified as discontinued operations as discussed in Note 5, Discontinued Operations . Segment information presented herein excludes the results of Tilda for all periods presented. Net sales and operating income are the primary measures used by the Company’s CODM to evaluate segment operating performance and to decide how to allocate resources to segments. The CODM is the Company’s CEO. 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 Productivity and transformation 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. The Company’s CODM does not use segment asset information to allocate resources or to assess performance of the segments and therefore, total segment assets have not been disclosed. 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, 2020 2019 2020 2019 Net Sales: North America $ 320,440 $ 314,321 $ 872,834 $ 911,086 International 232,857 232,936 669,323 688,215 $ 553,297 $ 547,257 $ 1,542,157 $ 1,599,301 Operating Income (Loss): North America $ 28,873 $ 21,358 $ 64,067 $ 35,427 International 18,660 19,883 40,666 40,696 47,533 41,241 $ 104,733 $ 76,123 Corporate and Other (a) (28,398) (22,249) (73,952) (105,975) $ 19,135 $ 18,992 $ 30,781 $ (29,852) (a) In addition to general Corporate and Other expenses as described above, for the three months ended March 31, 2020, Corporate and Other includes $5,572 of Productivity and transformation costs and tradename impairment of $7,650 ($2,118 related to North America; $5,532 related to International), partially offset by a benefit of $400 of proceeds from insurance claim. 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 Productivity and transformation costs. In addition to general Corporate and Other expenses as described above, for the nine months ended March 31, 2020, Corporate and Other includes $26,142 of Productivity and transformation costs and tradename impairment charges of $9,539 ($4,007 related to North America; $5,532 related to International), partially offset by a benefit of $2,962 of proceeds from insurance claim. 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 Productivity and transformation costs, $4,334 of accounting review and remediation costs, net of insurance proceeds, and tradename impairment charges of $17,900 ($15,113 related to North America; $2,787 related to International). The Company's net sales by product category are as follows: Three Months Ended March 31, Nine Months Ended March 31, 2020 2019 2020 2019 Grocery $ 373,723 $ 388,687 $ 1,081,497 $ 1,151,781 Snacks 79,252 72,513 227,925 216,652 Tea 33,372 31,784 93,855 93,113 Personal Care 66,950 54,273 138,880 137,755 Total $ 553,297 $ 547,257 $ 1,542,157 $ 1,599,301 The Company’s net sales by geographic region, which are generally based on the location of the Company’s subsidiaries, were as follows: Three Months Ended March 31, Nine Months Ended March 31, 2020 2019 2020 2019 United States $ 279,534 $ 278,589 $ 758,759 $ 804,456 United Kingdom 169,024 179,679 501,619 537,438 All Other 104,739 88,989 281,779 257,407 Total $ 553,297 $ 547,257 $ 1,542,157 $ 1,599,301 The Company’s long-lived assets, which primarily represent net property, plant and equipment, by geographic area were as follows: March 31, June 30, United States $ 113,069 $ 115,866 United Kingdom 137,517 132,876 All Other 82,005 87,277 Total $ 332,591 $ 336,019 |