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. Beginning in the third quarter ended March 31, 2018, the Hain Pure Protein operations were classified as discontinued operations as discussed in “Note 5, Discontinued Operations.” Therefore, segment information presented excludes the results of Hain Pure Protein. As a result, the Company is now managed in seven operating segments: the United States, United Kingdom, Tilda, Ella’s Kitchen UK, Europe, Canada and Cultivate.

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, impairment charges and accounting review 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.



	Fiscal Years Ended June 30,
	2018			2017			2016
Net Sales: ⁽¹⁾
United States	$	1,084,871		$	1,107,806		$	1,164,817
United Kingdom	938,029			851,757			859,183
Rest of World	434,869			383,942			368,864
	$	2,457,769		$	2,343,505		$	2,392,864

Operating Income:
United States	$	86,319		$	145,307		$	188,671
United Kingdom	56,046			51,948			70,809
Rest of World	38,660			32,010			27,898
	181,025			229,265			287,378
Corporate and Other ⁽²⁾	(74,985		)	(119,842		)	(168,577		)
	$	106,040		$	109,423		$	118,801

(1)

One of our customers accounted for approximately 11%, 12%, and 12% of our consolidated net sales for the fiscal years ended June 30, 2018, 2017 and 2016, respectively, which were primarily related to the United States and United Kingdom segments. A second customer accounted for approximately, 11%, 11% and 12% of our consolidated net sales for the fiscal years ended June 30, 2018, 2017 and 2016, respectively, which were primarily related to the United States segment.

(2)

For the fiscal year ended June 30, 2018, Corporate and Other included $12,841 of acquisition related expenses, restructuring, integration and other charges and $9,293 of accounting review and remediation costs, net of insurance proceeds. Corporate and Other for the fiscal year ended June 30, 2018 also included impairment charges of $5,632 ($5,100 related to Rest of World and $532 related to the United Kingdom segment) related to certain of the Company’s trade names. For the fiscal year ended June 30, 2017, Corporate and Other included $29,562 of accounting review and remediation costs, $10,388 of acquisition related expenses, restructuring, integration and other charges. Corporate and Other for the fiscal year ended June 30, 2017 also included impairment charges of $14,079 ($7,579 related to the United Kingdom segment and $6,500 related to the United States segment) related to certain of the Company’s trade names, a $26,373 impairment charge primarily related to long-lived assets associated with the exit of certain portions of our own-label chilled desserts business in the United Kingdom segment. For the fiscal year ended June 30, 2016, Corporate and Other included $12,065 of acquisition related expenses, restructuring, integration and other charges, goodwill impairment charges of $84,548 related to the United Kingdom segment, an impairment charge of $39,724 ($20,932 related to the United Kingdom segment and $18,792 related to the United States segment) related to certain of the Company’s trade names and a $3,476 impairment charge related to long-lived assets associated with the divestiture of certain portions of our own-label juice business in the United Kingdom.

The Company’s net sales by product category are as follows:



	Fiscal Year Ended June 30,
	2018		2017		2016
Grocery	$	1,842,535	$	1,743,860	$	1,800,640
Snacks	302,795		312,784		307,797
Personal Care	196,245		176,408		171,669
Tea	116,194		110,453		112,758
Total	$	2,457,769	$	2,343,505	$	2,392,864

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



	Fiscal Year Ended June 30,
	2018		2017		2016
United States	$	1,144,832	$	1,167,688	$	1,237,240
United Kingdom	938,029		851,757		859,183
All Other	374,908		324,060		296,441
Total	$	2,457,769	$	2,343,505	$	2,392,864

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



	Fiscal Year Ended June 30,
	2018		2017
United States	$	99,650	$	112,373
United Kingdom	174,214		165,334
All Other	86,700		63,392
Total	$	360,564	$	341,099