SEGMENT INFORMATION

Prior to July 1, 2017, the Company’s operations were managed in eight operating segments: the United States, United Kingdom, Tilda, HPPC, Empire, Canada, Europe and Cultivate. The United States operating segment was also a reportable segment. The United Kingdom and Tilda operating segments were reported in the aggregate as “United Kingdom”, while HPPC and Empire were reported in the aggregate as “Hain Pure Protein,” and Canada, Europe and Cultivate were combined and reported as “Rest of World.”

Effective July 1, 2017, due to changes to the Company’s internal management and reporting structure, the United Kingdom operations of the Ella’s Kitchen^® brand, which was previously included within the United States reportable segment, was moved to the United Kingdom reportable segment. As a result, the Company is now managed in nine operating segments: the United States, United Kingdom, Tilda, Ella’s Kitchen UK, HPPC, Empire, Europe, Canada and Cultivate. Ella’s Kitchen UK is now combined with the United Kingdom and Tilda operating segments and is reported within the United Kingdom reportable segment. There were no changes to the Hain Pure Protein reportable segment or Rest of World in connection with these changes.

Beginning in the third quarter ended March 31, 2018, the Hain Pure Protein operations are classified as discontinued operations as discussed in “Note 4: Discontinued Operations.” Therefore, segment information presented excludes the results of Hain Pure Protein.

The prior period segment information contained below has been adjusted to reflect the Company’s revised operating and reporting structure.

Net sales and operating income are the primary measures used by the Company’s Chief Operating Decision Maker (“CODM”) to evaluate segment operating performance and to decide how to allocate resources to segments. The CODM is the Company’s Chief Executive Officer. 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, acquisition related expenses, restructuring and integration charges and other, along with accounting review and remediation 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. Assets are reviewed by the CODM on a consolidated basis and therefore are not reported by operating segment.

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,
	2018			2017			2018			2017
Net Sales:
United States	$	281,052		$	289,503		$	815,013		$	822,376
United Kingdom	238,321			200,976			698,968			633,439
Rest of World	113,347			98,319			324,190			284,799
	$	632,720		$	588,798		$	1,838,171		$	1,740,614

Operating Income:
United States	$	24,974		$	44,322		$	67,696		$	103,045
United Kingdom	13,863			14,061			37,062			31,200
Rest of World	11,059			9,362			30,591			21,894
	$	49,896		$	67,745		$	135,349		$	156,139
Corporate and Other ^(a)	(20,642		)	(18,124		)	(45,889		)	(53,890		)
	$	29,254		$	49,621		$	89,460		$	102,249

(a) Includes $7,488 and $9,207 of accounting review and remediation costs, net of insurance proceeds, and acquisition related expenses, restructuring and integration charges for the three months ended March 31, 2018 and 2017, respectively. Such expenses for the nine months ended March 31, 2018 and 2017 were $13,835 and $22,741, respectively.

The Company’s long-lived assets, which primarily represent net property, plant and equipment, by geographic area were as follows:



	March 31, 2018		June 30, 2017
United States	$	102,744	$	112,373
United Kingdom	178,797		165,396
All Other	86,134		63,330
Total	$	367,675	$	341,099

The Company’s net sales by geographic region, which are generally based on the location of the Company’s subsidiary, were as follows:



	Three Months Ended March 31,				Nine Months Ended March 31,
	2018		2017		2018		2017
United States	$	296,635	$	305,595	$	860,987	$	868,127
United Kingdom	238,321		200,976		698,968		633,439
All Other	97,764		82,227		278,216		239,048
Total	$	632,720	$	588,798	$	1,838,171	$	1,740,614