Discontinued Operations (Tables)

9 Months Ended

Mar. 31, 2020

Discontinued Operations and Disposal Groups [Abstract]

Schedule of Discontinued Operations

The following table presents the major classes of Tilda’s results within “Net income (loss) from discontinued operations, net of tax” in our Consolidated Statements of Operations:

	Three Months Ended March 31,				Nine Months Ended March 31,
	2020		2019		2020		2019
Net sales	$	—	$	52,540	$	30,399	$	145,485
Cost of sales	—		40,479		26,648		109,816
Gross profit	—		12,061		3,751		35,669
Selling, general and administrative expense	—		6,651		5,185		19,823
Other expense	—		539		1,172		1,622
Interest expense(1)	—		3,395		2,432		10,177
Translation loss(2)	—		—		95,120		—
Loss (gain) on sale of discontinued operations	540		—		(9,630)		—
Net (loss) income from discontinued operations before income taxes	(540)		1,476		(90,528)		4,047
(Benefit) provision for income taxes(3)	(965)		171		12,900		247
Net income (loss) from discontinued operations, net of tax	$	425	$	1,305	$	(103,428)	$	3,800

(1) Interest expense was allocated to discontinued operations based on borrowings repaid with proceeds from the sale of Tilda.

(2) At the completion of the sale of Tilda, the Company reclassified $95,120 of related cumulative translation losses from Accumulated other comprehensive loss to discontinued operations, net of tax.

(3) Includes a tax (benefit) provision related to the tax gain on the sale of Tilda of $(750) and $14,500 for the three and nine months ended March 31, 2020, respectively.

Assets and liabilities of discontinued operations associated with Tilda presented in the Consolidated Balance Sheets as of June 30, 2019 are included in the following table:

	June 30,
ASSETS	2019
Cash and cash equivalents	$	8,509
Accounts receivable, less allowance for doubtful accounts	26,955
Inventories	65,546
Prepaid expenses and other current assets	9,038
Total current assets of discontinued operations(1)	110,048
Property, plant and equipment, net	40,516
Goodwill	133,098
Trademarks and other intangible assets, net	84,925
Other assets	628
Total noncurrent assets of discontinued operations(1)	259,167
Total assets of discontinued operations	$	369,215
LIABILITIES
Accounts payable	$	18,341
Accrued expenses and other current liabilities	4,675
Current portion of long-term debt	8,687
Total current liabilities of discontinued operations(1)	31,703
Deferred tax liabilities	17,153
Other noncurrent liabilities	208
Total noncurrent liabilities of discontinued operations(1)	17,361
Total liabilities of discontinued operations(1)	$	49,064

(1) Assets and liabilities from discontinued operations were classified as current and noncurrent at June 30, 2019 as they did not meet the held-for-sale criteria.

The following table presents the major classes of Hain Pure Protein’s results within “Net loss from discontinued operations, net of tax” in our Consolidated Statements of Operations:

	Three Months Ended March 31,				Nine Months Ended March 31,
	2020		2019		2020		2019
Net sales	$	—	$	88,729	$	—	$	349,449
Cost of sales	—		88,277		—		356,073
Gross profit (loss)	—		452		—		(6,624)
Selling, general and administrative expense	—		4,039		—		13,031
Asset impairments	—		51,348		—		109,252
Other expense	—		2,182		—		7,377
Loss on sale of discontinued operations(1)	1,781		40,223		3,205		40,223
Net loss from discontinued operations before income taxes	(1,781)		(97,340)		(3,205)		(176,507)
Benefit for income taxes	(659)		(21,415)		(1,052)		(49,035)
Net loss from discontinued operations, net of tax	$	(1,122)	$	(75,925)	$	(2,153)	$	(127,472)

(1) Primarily relates to preliminary closing balance sheet adjustments.