Cover Page
Cover Page - shares | 3 Months Ended | |
Sep. 30, 2021 | Nov. 02, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2021 | |
Document Transition Report | false | |
Entity File Number | 0-22818 | |
Entity Registrant Name | THE HAIN CELESTIAL GROUP, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 22-3240619 | |
Entity Address, Address Line One | 1111 Marcus Avenue | |
Entity Address, City or Town | Lake Success | |
Entity Address, State or Province | NY | |
Entity Address, Postal Zip Code | 11042 | |
City Area Code | 516 | |
Local Phone Number | 587-5000 | |
Title of 12(b) Security | Common Stock, par value $0.01 per share | |
Trading Symbol | HAIN | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 94,581,455 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q1 | |
Entity Central Index Key | 0000910406 | |
Current Fiscal Year End Date | --06-30 |
CONSOLIDATED BALANCE SHEETS (UN
CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Thousands | Sep. 30, 2021 | Jun. 30, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 28,962 | $ 75,871 |
Accounts receivable, less allowance for doubtful accounts of $1,210 and $1,314, respectively | 181,048 | 174,066 |
Inventories | 280,176 | 285,410 |
Prepaid expenses and other current assets | 38,496 | 39,834 |
Assets held for sale | 3,642 | 1,874 |
Total current assets | 532,324 | 577,055 |
Property, plant and equipment, net | 312,426 | 312,777 |
Goodwill | 863,348 | 871,067 |
Trademarks and other intangible assets, net | 308,588 | 314,895 |
Investments and joint ventures | 16,718 | 16,917 |
Operating lease right-of-use assets, net | 88,387 | 92,010 |
Other assets | 20,474 | 21,187 |
Total assets | 2,142,265 | 2,205,908 |
Current liabilities: | ||
Accounts payable | 172,733 | 171,947 |
Accrued expenses and other current liabilities | 123,296 | 117,957 |
Current portion of long-term debt | 335 | 530 |
Total current liabilities | 296,364 | 290,434 |
Long-term debt, less current portion | 345,414 | 230,492 |
Deferred income taxes | 40,345 | 42,639 |
Operating lease liabilities, noncurrent portion | 82,176 | 85,929 |
Other noncurrent liabilities | 29,210 | 33,531 |
Total liabilities | 793,509 | 683,025 |
Commitments and contingencies (Note 17) | ||
Stockholders’ equity: | ||
Preferred stock - $.01 par value, authorized 5,000 shares; issued and outstanding: none | 0 | 0 |
Common stock - $.01 par value, authorized 150,000 shares; issued: 109,568 and 109,507 shares, respectively; outstanding: 94,576 and 99,069 shares, respectively | 1,096 | 1,096 |
Additional paid-in capital | 1,191,817 | 1,187,530 |
Retained earnings | 710,636 | 691,225 |
Accumulated other comprehensive loss | (93,974) | (73,011) |
Total stockholders' equity including treasury stock | 1,809,575 | 1,806,840 |
Less: Treasury stock, at cost, 14,992 and 10,438 shares, respectively | (460,819) | (283,957) |
Total stockholders’ equity | 1,348,756 | 1,522,883 |
Total liabilities and stockholders’ equity | $ 2,142,265 | $ 2,205,908 |
CONSOLIDATED BALANCE SHEETS (_2
CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2021 | Jun. 30, 2021 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance for doubtful accounts | $ 1,210 | $ 1,314 |
Preferred stock, par value (USD per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (shares) | 5,000,000 | 5,000,000 |
Preferred stock, shares issued (shares) | 0 | 0 |
Preferred stock, shares outstanding (shares) | 0 | 0 |
Common stock, par value (USD per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (shares) | 150,000,000 | 150,000,000 |
Common stock, shares issued (shares) | 109,568,000 | 109,507,000 |
Common stock, shares, outstanding (shares) | 94,576,000 | 99,069,000 |
Treasury stock, shares (shares) | 14,992,000 | 10,438,000 |
CONSOLIDATED STATEMENT OF OPERA
CONSOLIDATED STATEMENT OF OPERATIONS (UNAUDITED) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Income Statement [Abstract] | ||
Net sales | $ 454,903 | $ 498,627 |
Cost of sales | 349,485 | 379,463 |
Gross profit | 105,418 | 119,164 |
Selling, general and administrative expenses | 73,989 | 79,521 |
Amortization of acquired intangible assets | 2,095 | 2,433 |
Productivity and transformation costs | 3,983 | 1,433 |
Proceeds from insurance claim | (196) | 0 |
Long-lived asset impairment | 0 | 32,497 |
Operating income | 25,547 | 3,280 |
Interest and other financing expense, net | 1,856 | 2,453 |
Other income, net | (788) | (1,373) |
Income from continuing operations before income taxes and equity in net loss of equity-method investees | 24,479 | 2,200 |
Provision for income taxes | 4,542 | 12,962 |
Equity in net loss of equity-method investees | 526 | 19 |
Net income (loss) from continuing operations | 19,411 | (10,781) |
Net income from discontinued operations, net of tax | 0 | 11,266 |
Net income | $ 19,411 | $ 485 |
Net income (loss) per common share: | ||
Basic net income (loss) per common share from continuing operations (USD per share) | $ 0.20 | $ (0.11) |
Basic net income per common share from discontinued operations (USD per share) | 0 | 0.11 |
Basic net income per common share (USD per share) | 0.20 | 0 |
Diluted net income (loss) per common share from continuing operations (USD per share) | 0.20 | (0.11) |
Diluted net income per common share from discontinued operations (USD per share) | 0 | 0.11 |
Diluted net income per common share (USD per share) | $ 0.20 | $ 0 |
Shares used in the calculation of net income (loss) per common share: | ||
Basic (shares) | 97,121 | 101,558 |
Diluted (shares) | 97,438 | 101,558 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 19,411 | $ 485 |
Pre-tax amount | ||
Foreign currency translation adjustments before reclassifications | (22,805) | 33,957 |
Change in deferred gains on cash flow hedging instruments | 44 | 50 |
Change in deferred gains (losses) on net investment hedging instruments | 2,287 | (3,787) |
Total other comprehensive (loss) income | (20,474) | 30,220 |
Tax (expense) benefit | ||
Foreign currency translation adjustments before reclassifications | 0 | 0 |
Change in deferred gains on cash flow hedging instruments | (9) | (10) |
Change in deferred gains (losses) on net investment hedging instruments | (480) | 795 |
Total other comprehensive (loss) income | (489) | 785 |
After-tax amount | ||
Foreign currency translation adjustments before reclassifications | (22,805) | 33,957 |
Change in deferred gains on cash flow hedging instruments | 35 | 40 |
Change in deferred gains (losses) on net investment hedging instruments | 1,807 | (2,992) |
Total other comprehensive (loss) income | (20,963) | 31,005 |
Total comprehensive (loss) income | $ (1,552) | $ 31,490 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (UNAUDITED) - USD ($) shares in Thousands, $ in Thousands | Total | Cumulative Effect, Period of Adoption, Adjustment | Common Stock | Additional Paid-In Capital | Retained Earnings | Retained EarningsCumulative Effect, Period of Adoption, Adjustment | Treasury Stock | Accumulated Other Comprehensive (Loss) Income |
Balance (shares) at Jun. 30, 2020 | 109,123 | 7,238 | ||||||
Balance at Jun. 30, 2020 | $ 1,443,554 | $ (310) | $ 1,092 | $ 1,171,875 | $ 614,171 | $ (310) | $ (172,192) | $ (171,392) |
Increase (Decrease) in Stockholders' Equity | ||||||||
Net income | 485 | 485 | ||||||
Other comprehensive (loss) income | 31,005 | 31,005 | ||||||
Issuance of common stock pursuant to stock-based compensation plans (shares) | 54 | |||||||
Issuance of common stock pursuant to stock-based compensation plans | 0 | $ 1 | (1) | |||||
Shares withheld for payment of employee payroll taxes due on shares issued under stock based compensation plans (shares) | 20 | |||||||
Shares withheld for payment of employee payroll taxes due on shares issued under stock-based compensation plans | (468) | $ (468) | ||||||
Repurchases of common stock (shares) | 1,281 | |||||||
Repurchases of common stock | (42,052) | $ (42,052) | ||||||
Stock-based compensation expense | 4,367 | 4,367 | ||||||
Balance at Sep. 30, 2020 | $ 1,436,581 | $ 1,093 | 1,176,241 | 614,346 | $ (214,712) | (140,387) | ||
Balance (shares) at Sep. 30, 2020 | 109,177 | 8,539 | ||||||
Balance (shares) at Jun. 30, 2021 | 109,507 | 109,507 | 10,438 | |||||
Balance at Jun. 30, 2021 | $ 1,522,883 | $ 1,096 | 1,187,530 | 691,225 | $ (283,957) | (73,011) | ||
Increase (Decrease) in Stockholders' Equity | ||||||||
Net income | 19,411 | 19,411 | ||||||
Other comprehensive (loss) income | (20,963) | (20,963) | ||||||
Issuance of common stock pursuant to stock-based compensation plans (shares) | 61 | |||||||
Issuance of common stock pursuant to stock-based compensation plans | 0 | $ 0 | 0 | |||||
Shares withheld for payment of employee payroll taxes due on shares issued under stock based compensation plans (shares) | 29 | |||||||
Shares withheld for payment of employee payroll taxes due on shares issued under stock-based compensation plans | (1,175) | $ (1,175) | ||||||
Repurchases of common stock (shares) | 4,525 | |||||||
Repurchases of common stock | (175,687) | $ (175,687) | ||||||
Stock-based compensation expense | 4,287 | 4,287 | ||||||
Balance at Sep. 30, 2021 | $ 1,348,756 | $ 1,096 | $ 1,191,817 | $ 710,636 | $ (460,819) | $ (93,974) | ||
Balance (shares) at Sep. 30, 2021 | 109,568 | 109,568 | 14,992 |
CONSOLIDATED STATEMENTS OF ST_2
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (UNAUDITED) (Parenthetical) - $ / shares | Sep. 30, 2021 | Jun. 30, 2021 | Sep. 30, 2020 | Jun. 30, 2020 |
Statement of Stockholders' Equity [Abstract] | ||||
Common stock, par value (USD per share) | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income | $ 19,411 | $ 485 |
Net income from discontinued operations | 0 | 11,266 |
Net income (loss) from continuing operations | 19,411 | (10,781) |
Adjustments to reconcile net income (loss) from continuing operations to net cash provided by operating activities from continuing operations: | ||
Depreciation and amortization | 10,855 | 13,761 |
Deferred income taxes | (2,105) | (930) |
Equity in net income of equity-method investees | 526 | 19 |
Stock-based compensation | 4,287 | 4,367 |
Long-lived asset impairment | 0 | 32,497 |
Gain on sale of assets | (276) | 0 |
Gain on sale of businesses | 0 | (620) |
Other non-cash items including unrealized currency gains, net | (1,093) | (1,047) |
(Decrease) increase in cash attributable to changes in operating assets and liabilities: | ||
Accounts receivable | (9,443) | (3,575) |
Inventories | 2,277 | (44,962) |
Other current assets | 900 | 37,869 |
Other assets and liabilities | (1,566) | (1,541) |
Accounts payable and accrued expenses | 13,813 | 15,612 |
Net cash provided by operating activities from continuing operations | 37,586 | 40,669 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Purchases of property, plant and equipment | (17,810) | (12,155) |
Investment in joint venture | (408) | 0 |
Proceeds from sale of assets | 164 | 0 |
Proceeds from sale of businesses and other | 0 | 4,427 |
Net cash used in investing activities from continuing operations | (18,054) | (7,728) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Borrowings under bank revolving credit facility | 120,000 | 55,000 |
Repayments under bank revolving credit facility | (5,000) | (47,000) |
Repayments of other debt, net | (237) | (1,439) |
Shares withheld for payment of employee payroll taxes | (1,175) | (468) |
Share repurchases | (177,103) | (42,052) |
Net cash used in financing activities from continuing operations | (63,515) | (35,959) |
Effect of exchange rate changes on cash from continuing operations | (2,926) | 2,500 |
Net decrease in cash and cash equivalents | (46,909) | (518) |
Cash and cash equivalents at beginning of period | 75,871 | 37,771 |
Cash and cash equivalents at end of period | $ 28,962 | $ 37,253 |
BUSINESS
BUSINESS | 3 Months Ended |
Sep. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BUSINESS | BUSINESS The Hain Celestial Group, Inc., a Delaware corporation (collectively with its subsidiaries, the “Company,” “Hain Celestial,” “we,” “us” or “our”), was founded in 1993 and is headquartered in Lake Success, New York. The Company’s mission has continued to evolve since its founding, with health and wellness being the core tenet. The Company continues to be a leading marketer, manufacturer and seller of organic and natural, “better-for-you” products by anticipating and exceeding consumer expectations in providing quality, innovation, value and convenience. The Company is committed to growing sustainably while continuing to implement environmentally sound business practices and manufacturing processes. Hain Celestial sells its products through specialty and natural food distributors, supermarkets, natural food stores, mass-market and e-commerce retailers, food service channels and club, drug and convenience stores in over 80 countries worldwide. The Company operates under two reportable segments: North America and International. Discontinued Operations The financial statements separately report discontinued operations and the results of continuing operations (see Note 4). All footnotes exclude discontinued operations unless otherwise noted. |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 3 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
BASIS OF PRESENTATION | BASIS OF PRESENTATION The Company’s unaudited consolidated financial statements include the accounts of the Company and its wholly-owned and majority-owned subsidiaries. Intercompany accounts and transactions have been eliminated in consolidation. Investments in affiliated companies in which the Company exerts significant influence, but which it does not control, are accounted for under the equity method of accounting. As such, consolidated net income includes the Company's equity in the current earnings or losses of such companies. The Company's unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) for interim financial information and the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and notes required by U.S. GAAP and should be read in conjunction with the Company's Annual Report on Form 10-K for the fiscal year ended June 30, 2021 (the “Form 10-K”). The amounts as of and for the periods ended June 30, 2021 are derived from the Company’s audited annual financial statements. The unaudited consolidated financial statements reflect all normal recurring adjustments which, in management’s opinion, are necessary for a fair presentation for interim periods. Operating results for the three months ended September 30, 2021 are not necessarily indicative of the results that may be expected for the fiscal year ending June 30, 2022. Please refer to the Notes to the Consolidated Financial Statements as of June 30, 2021 and for the fiscal year then ended included in the Form 10-K for information not included in these condensed notes. All amounts in the unaudited consolidated financial statements, notes and tables have been rounded to the nearest thousand, except par values and per share amounts, unless otherwise indicated. Reclassifications Certain prior year amounts have been reclassified to conform with current year presentation. Transfer of Financial Assets The Company has non-recourse accounts receivable financing arrangements in which eligible receivables are sold to third-party buyers in exchange for cash. The Company transferred accounts receivables in their entirety to the buyers and satisfied all of the conditions to report the transfer of financial assets in their entirety as a sale. The principal amount of receivables sold under these arrangements was $22,889 and $14,360 during the three months ended September 30, 2021 and 2020 , respectively. The incremental cost of accounts receivable financing arrangements is included in Interest and other financing expense, net in the Company’s Consolidated Statements of Operations. The proceeds from the sale of receivables are included in cash from operating activities in the accompanying Consolidated Statements of Cash Flows. Significant Accounting Policies The Company's significant accounting policies are described in Note 2, Summary of Significant Accounting Policies and Practices , in the Notes to the Consolidated Financial Statements in the Form 10-K. Recently Adopted Accounting Pronouncements Issued by the Financial Accounting Standards Board (“FASB”), ASC 815, Derivatives and Hedging (“ASC 815”), provides the disclosure requirements for derivatives and hedging activities with the intent to provide users of financial statements with an enhanced understanding of: (a) how and why an entity uses derivative instruments, (b) how the entity accounts for derivative instruments and related hedged items and (c) how derivative instruments and related hedged items affect an entity’s financial position, financial performance and cash flows. Further, ASC 815 requires qualitative disclosures that explain the Company’s objectives and strategies for using derivatives, as well as quantitative disclosures about the fair value of and gains and losses on derivative instruments, and disclosures about credit-risk-related contingent features in derivative instruments. During the first quarter of fiscal year 2022, the Company adopted the hedge accounting expedients related to probability and the assessments of effectiveness for future LIBOR-indexed cash flows to assume that the index upon which future hedged transactions will be based matches the index on the corresponding derivatives. Application of these expedients preserves the presentation of derivatives consistent with past presentation. The Company continues to evaluate the impact of the guidance and may apply other elections as applicable as additional changes in the market occur. |
EARNINGS (LOSS) PER SHARE
EARNINGS (LOSS) PER SHARE | 3 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share [Abstract] | |
EARNINGS (LOSS) PER SHARE | EARNINGS (LOSS) PER SHARE The following table sets forth the computation of basic and diluted net income (loss) per share: Three Months Ended September 30, 2021 2020 Numerator: Net income (loss) from continuing operations $ 19,411 $ (10,781) Net income from discontinued operations — 11,266 Net income $ 19,411 $ 485 Denominator: Basic weighted average shares outstanding 97,121 101,558 Effect of dilutive stock options, unvested restricted stock and unvested restricted share units 317 — Diluted weighted average shares outstanding 97,438 101,558 Basic net income (loss) per common share: Continuing operations $ 0.20 $ (0.11) Discontinued operations — 0.11 Basic net income per common share $ 0.20 $ — Diluted net income (loss) per common share: Continuing operations $ 0.20 $ (0.11) Discontinued operations — 0.11 Diluted net income per common share $ 0.20 $ — Basic net income (loss) per share excludes the dilutive effects of stock options, unvested restricted stock and unvested restricted share units. Anti-dilutive restricted stock awards and stock options excluded from our calculation of diluted net income (loss) per share for the three months ended September 30, 2021 were de minimis. There were 1,299 stock-based awards excluded for the three months ended September 30, 2021 as such awards were contingently issuable based on market or performance conditions, and such conditions had not been achieved during the period. Due to our net loss from continuing operations in the three months ended September 30, 2020, all common stock equivalents such as stock options and unvested restricted stock awards have been excluded from the computation of diluted net loss per common share because the effect would have been anti-dilutive to the computations in the period. Share Repurchase Program In June 2017 and August 2021, the Company's Board of Directors authorized the repurchase of up to $250,000 and $300,000 of the Company’s issued and outstanding common stock, respectively. Share repurchases under the 2021 authorization commenced in August 2021, after the 2017 authorization was fully utilized. Repurchases may be made from time to time in the open market, pursuant to pre-set trading plans, in private transactions or otherwise. The authorization does not have a stated expiration date. The extent to which the Company repurchases its shares and the timing of such repurchases will depend upon market conditions and other corporate considerations. During the three months ended September 30, 2021, the Company repurchased 4,525 shares under the repurchase program for a total of $175,597, excluding commissions, at an average price of $38.80 per share. As of September 30, 2021, the Company had $206,811 of remaining authorization under the share repurchase program. During the three months ended September 30, 2020, the Company repurchased 1,281 shares under the repurchase program for a total of $42,027, excluding commissions, at an average price of $32.81 per share. |
DISPOSITIONS
DISPOSITIONS | 3 Months Ended |
Sep. 30, 2021 | |
Discontinued Operations and Disposal Groups [Abstract] | |
DISPOSITIONS | DISPOSITIONS GG UniqueFiber ® On June 28, 2021, the Company completed the divestiture of its crispbread crackers business, GG UniqueFiber ® (“GG”) for total cash consideration of $336. The sale of GG is consistent with the Company’s transformation and portfolio simplification process. GG operated in Norway and was part of the Company’s International reportable segment. The Company deconsolidated the net assets of GG during the twelve months ended June 30, 2021, recognizing a pre-tax loss on sale of $3,753. Dream ® and WestSoy ® On April 15, 2021, the Company completed the divestiture of its North America non-dairy beverages business, consisting of the Dream ® and WestSoy ® brands, for total cash consideration of $33,000, subject to customary post-closing adjustments. The final purchase price was $31,320. The non-dairy beverage business was considered to be non-core within our broader North American business, and the sale aligns with the Company’s portfolio simplification process. The business operated out of the United States and Canada and was part of the Company’s North America reportable segment. The Company deconsolidated the net assets of the North American non-dairy beverage business during the twelve months ended June 30, 2021, recognizing a pre-tax gain on sale of $7,519 . Fruit In August 2020, the Company's Board of Directors approved a plan to sell its prepared fresh fruit, fresh fruit drinks and fresh fruit desserts division ("Fruit"), primarily consisting of the Orchard House ® Foods Limited business and associated brands. This decision supported the Company's overall strategy as the Fruit business did not align, and had limited synergies, with the rest of the Company's businesses. The Company determined that the held for sale criteria was m et and classified the assets and liabilities of the Fruit business as held for sale as of September 30, 2020 and December 31, 2020, recognizing pre-tax non-cash losses of $32,497 and $23,596, respectively, to reduce the carrying value to its estimated fair value less costs to sell. The sale was completed on January 13, 2021 for a total cash consideration of $38,547, recognizing a pre-tax loss on sale of $1,904. Danival The Company entered into a definitive stock purchase agreement on June 30, 2020 for the sale of its Danival business, a component of the International reportable segment, and the transaction closed on July 21, 2020. The Company deconsolidated the net assets of the Danival business upon closing of the sale during the quarter ended September 30, 2020, recognizing a pre-tax gain on sale of $611. Discontinued Operations Sale of Tilda Business On August 27, 2019, the Company sold the entities comprising the Tilda Group Entities and certain other assets of the Tilda business for an aggregate price of $342,000 in cash, subject to customary post-closing adjustments based on the balance sheets of the Tilda business. The disposition of the Tilda operating segment represented a strategic shift that had a major impact on the Company’s operations and financial results and has been accounted for as discontinued operations. The following table presents the major classes of Tilda’s results within Net income from discontinued operations, net of tax in our Consolidated Statements of Operations: Three Months Ended September 30, 2020 Net sales $ — Cost of sales — Gross profi t — Other expense 75 Net loss from discontinued operations before income taxes (75) Benefit for income taxes (1) (11,331) Net income from discontinued operations, net of tax $ 11,256 (1) Includes $11,331 of tax benefit related to the tax gain on the sale of Tilda for the three months ended September 30, 2020. There were no assets or liabilities from discontinued operations associated with Tilda as of September 30, 2021 or June 30, 2021. The Company's dispositions are described in more detail in Note 5, Dispositions , in the Notes to the Consolidated Financial Statements in the Form 10-K. |
INVENTORIES
INVENTORIES | 3 Months Ended |
Sep. 30, 2021 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | INVENTORIES Inventories consisted of the following: September 30, June 30, Finished goods $ 180,604 $ 187,884 Raw materials, work-in-progress and packaging 99,572 97,526 $ 280,176 $ 285,410 At each period end, inventory is reviewed to ensure that it is recorded at the lower of cost or net realizable value. During the three months ended September 30, 2021 and 2020, the Company recorded inventory write-downs of $0 and $204 , respectively. |
PROPERTY, PLANT AND EQUIPMENT,
PROPERTY, PLANT AND EQUIPMENT, NET | 3 Months Ended |
Sep. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY, PLANT AND EQUIPMENT, NET | PROPERTY, PLANT AND EQUIPMENT, NET Property, plant and equipment, net consisted of the following: September 30, June 30, Land $ 13,252 $ 13,666 Buildings and improvements 55,199 58,143 Machinery and equipment 306,275 306,811 Computer hardware and software 66,076 65,132 Furniture and fixtures 23,874 23,546 Leasehold improvements 56,371 54,360 Construction in progress 23,246 21,633 544,293 543,291 Less: accumulated depreciation and amortization 231,867 230,514 $ 312,426 $ 312,777 Depreciation expense for the three months ended September 30, 2021 and 2020 was $7,408 and $9,703, respectively. A facility in the United Kingdom was held for sale as of June 30, 2021 with a net carrying amount of 1,874. Additionally, a facility in the United States was held for sale as of September 30, 2021 with a net carrying amount of $1,768. |
LEASES
LEASES | 3 Months Ended |
Sep. 30, 2021 | |
Leases [Abstract] | |
LEASES | LEASES The Company leases office space, warehouse and distribution facilities, manufacturing equipment and vehicles primarily in North America and Europe. The Company determines if an arrangement is or contains a lease at inception. Lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. The Company’s lease agreements generally do not contain residual value guarantees or material restrictive covenants. A limited number of lease agreements include rental payments adjusted periodically for inflation. Some of the Company’s leases contain variable lease payments, which are expensed as incurred unless those payments are based on an index or rate. Variable lease payments based on an index or rate are initially measured using the index or rate in effect at lease commencement and included in the measurement of the lease liability; thereafter, changes to lease payments due to rate or index changes are recorded as variable lease expense in the period incurred. The Company does not have any related party leases, and sublease transactions are de minimis. The components of lease expenses for the three months ended September 30, 2021 and 2020 were as follows: Three Months Ended September 30, 2021 2020 Operating lease expenses $ 3,752 $ 3,956 Finance lease expenses 70 185 Variable lease expenses 403 866 Short-term lease expenses 1,365 913 Total lease expenses $ 5,590 $ 5,920 Additional information related to leases is as follows: Three Months Ended September 30, 2021 2020 Supplemental cash flow information Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 3,745 $ 4,359 Operating cash flows from finance leases $ 5 $ 3 Financing cash flows from finance leases $ 60 $ 85 ROU assets obtained in exchange for lease obligations: Operating leases $ 319 $ 7,766 Finance leases $ — $ 15 Weighted average remaining lease term: Operating leases 9.6 years 10.1 years Finance leases 4.1 years 2.1 years Weighted average discount rate: Operating leases 3.3 % 3.0 % Finance leases 4.2 % 2.6 % Supplemental balance sheet information related to leases was as follows: Leases Classification September 30, 2021 June 30, 2021 Assets Operating lease ROU assets, net Operating lease right-of-use assets, net $ 88,387 $ 92,010 Finance lease ROU assets, net Property, plant and equipment, net 469 547 Total leased assets $ 88,856 $ 92,557 Liabilities Current Operating Accrued expenses and other current liabilities $ 11,216 $ 10,870 Finance Current portion of long-term debt 195 229 Non-current Operating Operating lease liabilities, noncurrent portion 82,176 85,929 Finance Long-term debt, less current portion 283 326 Total lease liabilities $ 93,870 $ 97,354 Maturities of lease liabilities as of September 30, 2021 were as follows: Fiscal Year Operating leases Finance leases Total 2022 (remainder of year) $ 10,094 $ 163 $ 10,257 2023 14,499 133 14,632 2024 12,712 51 12,763 2025 11,313 51 11,364 2026 10,741 51 10,792 Thereafter 52,096 76 52,172 Total lease payments 111,455 525 111,980 Less: Imputed interest 18,063 47 18,110 Total lease liabilities $ 93,392 $ 478 $ 93,870 |
LEASES | LEASES The Company leases office space, warehouse and distribution facilities, manufacturing equipment and vehicles primarily in North America and Europe. The Company determines if an arrangement is or contains a lease at inception. Lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. The Company’s lease agreements generally do not contain residual value guarantees or material restrictive covenants. A limited number of lease agreements include rental payments adjusted periodically for inflation. Some of the Company’s leases contain variable lease payments, which are expensed as incurred unless those payments are based on an index or rate. Variable lease payments based on an index or rate are initially measured using the index or rate in effect at lease commencement and included in the measurement of the lease liability; thereafter, changes to lease payments due to rate or index changes are recorded as variable lease expense in the period incurred. The Company does not have any related party leases, and sublease transactions are de minimis. The components of lease expenses for the three months ended September 30, 2021 and 2020 were as follows: Three Months Ended September 30, 2021 2020 Operating lease expenses $ 3,752 $ 3,956 Finance lease expenses 70 185 Variable lease expenses 403 866 Short-term lease expenses 1,365 913 Total lease expenses $ 5,590 $ 5,920 Additional information related to leases is as follows: Three Months Ended September 30, 2021 2020 Supplemental cash flow information Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 3,745 $ 4,359 Operating cash flows from finance leases $ 5 $ 3 Financing cash flows from finance leases $ 60 $ 85 ROU assets obtained in exchange for lease obligations: Operating leases $ 319 $ 7,766 Finance leases $ — $ 15 Weighted average remaining lease term: Operating leases 9.6 years 10.1 years Finance leases 4.1 years 2.1 years Weighted average discount rate: Operating leases 3.3 % 3.0 % Finance leases 4.2 % 2.6 % Supplemental balance sheet information related to leases was as follows: Leases Classification September 30, 2021 June 30, 2021 Assets Operating lease ROU assets, net Operating lease right-of-use assets, net $ 88,387 $ 92,010 Finance lease ROU assets, net Property, plant and equipment, net 469 547 Total leased assets $ 88,856 $ 92,557 Liabilities Current Operating Accrued expenses and other current liabilities $ 11,216 $ 10,870 Finance Current portion of long-term debt 195 229 Non-current Operating Operating lease liabilities, noncurrent portion 82,176 85,929 Finance Long-term debt, less current portion 283 326 Total lease liabilities $ 93,870 $ 97,354 Maturities of lease liabilities as of September 30, 2021 were as follows: Fiscal Year Operating leases Finance leases Total 2022 (remainder of year) $ 10,094 $ 163 $ 10,257 2023 14,499 133 14,632 2024 12,712 51 12,763 2025 11,313 51 11,364 2026 10,741 51 10,792 Thereafter 52,096 76 52,172 Total lease payments 111,455 525 111,980 Less: Imputed interest 18,063 47 18,110 Total lease liabilities $ 93,392 $ 478 $ 93,870 |
GOODWILL AND OTHER INTANGIBLE A
GOODWILL AND OTHER INTANGIBLE ASSETS | 3 Months Ended |
Sep. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND OTHER INTANGIBLE ASSETS | GOODWILL AND OTHER INTANGIBLE ASSETS Goodwill The following table provides the changes in the carrying value of goodwill by reportable segment: North America International Total Balance as of June 30, 2021 $ 600,812 $ 270,255 $ 871,067 Translation and other adjustments, net (777) (6,942) (7,719) Balance as of September 30, 2021 $ 600,035 $ 263,313 $ 863,348 Other Intangible Assets The following table includes the gross carrying amount and accumulated amortization, where applicable, for intangible assets, excluding goodwill: September 30, June 30, Non-amortized intangible assets: Trademarks and tradenames $ 270,084 $ 273,471 Amortized intangible assets: Other intangibles 143,884 146,856 Less: accumulated amortization (105,380) (105,432) Net carrying amount $ 308,588 $ 314,895 There were no events or circumstances that warranted an interim impairment test for indefinite-lived intangible assets during the three months ended September 30, 2021 or 2020. Amortized intangible assets, which are deemed to have a finite life, primarily consist of customer relationships and trademarks and tradenames and are amortized over their estimated useful lives of 5 to 25 years. Amortization expense included in continuing operations was as follows: Three Months Ended September 30, 2021 2020 Amortization of acquired intangibles $ 2,095 $ 2,433 |
DEBT AND BORROWINGS
DEBT AND BORROWINGS | 3 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
DEBT AND BORROWINGS | DEBT AND BORROWINGS Debt and borrowings consisted of the following: September 30, June 30, Revolving credit facility $ 344,969 $ 230,000 Other borrowings 780 1,022 345,749 231,022 Short-term borrowings and current portion of long-term debt 335 530 Long-term debt, less current portion $ 345,414 $ 230,492 Credit Agreement On February 6, 2018, the Company entered into the Third Amended and Restated Credit Agreement (the “Credit Agreement”). The Credit Agreement provides for a $1,000,000 revolving credit facility through February 6, 2023 and provides for a $300,000 term loan. Under the Credit Agreement, the revolving credit facility may be increased by an additional uncommitted $400,000, provided certain conditions are met. Borrowings under the Credit Agreement may be used to provide working capital, finance capital expenditures and permitted acquisitions, refinance certain existing indebtedness and for other lawful corporate purposes. The Credit Agreement provides for multicurrency borrowings in Euros and Canadian dollars as well as other currencies which may be designated. In addition, certain wholly-owned foreign subsidiaries of the Company may be designated as co-borrowers. The Credit Agreement contains restrictive covenants, which are usual and customary for facilities of its type, and include, with specified exceptions, limitations on the Company’s ability to engage in certain business activities, incur debt, have liens, make capital expenditures, pay dividends or make other distributions, enter into affiliate transactions, consolidate, merge or acquire or dispose of assets, and make certain investments, acquisitions and loans. The Credit Agreement also requires the Company to satisfy certain financial covenants. Obligations under the Credit Agreement are guaranteed by certain existing and future domestic subsidiaries of the Company. As of September 30, 2021, there were $344,969 of borro wings outstanding under the revolving credit f acility and $6,394 let ters of credit outstanding under the Credit Agreement. On May 8, 2019, the Company entered into the Third Amendment to the Third Amended and Restated Credit Agreement (the “Amended Credit Agreement”), whereby, among other things, its allowable consolidated leverage ratio (as defined in the Credit Agreement) and interest coverage ratio (as defined in the Credit Agreement) were adjusted. The Company’s allowable consolidated leverage ratio is no more than 3.75 to 1.0 on September 30, 2020 and thereafter. Additionally, the Company’s required consolidated interest coverage ratio is no less than 3.75 to 1 through March 31, 2021 and no less than 4.0 to 1 thereafter. The Amended Credit Agreement also required that the Company and the subsidiary guarantors enter into a Security and Pledge Agreement pursuant to which all of the obligations under the Amended Credit Agreement are secured by liens on assets of the Company and its material domestic subsidiaries, including stock of each of their direct subsidiaries and intellectual property, subject to agreed upon exceptions. As of September 30, 2021, $648,637 was available under the Amended Credit Agreement, and the Company was in compliance with all associated covenants, as amended by the Amended Credit Agreement. The Amended Credit Agreement provides that loans will bear interest at rates based on (a) the Eurocurrency Rate, as defined in the Credit Agreement, plus a rate ranging from 0.88% to 2.50% per annum; or (b) the Base Rate, as defined in the Credit Agreement, plus a rate ranging from 0.00% to 1.50% per annum, the relevant rate being the Applicable Rate. The Applicable Rate will be determined in accordance with a leverage-based pricing grid, as set forth in the Amended Credit Agreement. Swing Line loans and Global Swing Line loans denominated in U.S. dollars will bear interest at the Base Rate plus the Applicable Rate, and Global Swing Line loans denominated in foreign currencies shall bear interest based on the overnight Eurocurrency Rate for loans denominated in such currency plus the Applicable Rate. The weighted average interest rate on outstanding borrowings under the Amended Credit Agreement at September 30, 2021 was 1.08% |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES In general, the Company uses an estimated annual effective tax rate, which is based on expected annual income and statutory tax rates in the various jurisdictions in which the Company operates, to determine its quarterly provision for income taxes. Certain significant or unusual items are separately recognized in the quarter in which they occur and can be a source of variability on the effective tax rates from quarter to quarter. The Company’s effective tax rate may change from period-to-period based on recurring and non-recurring factors including the geographical mix of earnings, enacted tax legislation, state and local income taxes and tax audit settlements. The effective income tax rate from continuing operations was expense of 18.6% and 589.2% for the three months ended September 30, 2021 and 2020, respectively. Lower effective income tax rate relative to our statutory tax rates for the current quarter is mainly due to the reversal of uncertain tax position accruals based on filing and approval of certain elections by the tax authorities. In addition, t he effective income tax rates from continuing operations for the three months ended September 30, 2021 and 2020 were negatively impacted by provisions in the Tax Cuts and Jobs Act (the "Tax Act"), primarily related to Global Intangible Low Taxed Income ("GILTI") and limitations on the deductibility of executive compensation. Furthermore, the effective income tax rate from continuing operations for the three months ended September 30, 2020 was negatively impacted by various discrete items including the tax impact of the United Kingdom Fruit business reserve, the legal entity reorganization, and the UK rate change. The effective income tax rates in each period were also impacted by the geographical mix of earnings and state valuation allowance. The income tax expense (benefit) from discon tinued operations was $0 for the three months ended September 30, 2021 , while the income tax benefit from discontinued operations was $11,331 for the three months ended September 30, 2020. The benefit for income tax for the three months ended September 30, 2020 was impacted by a legal entity reorganization. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE LOSS | 3 Months Ended |
Sep. 30, 2021 | |
Equity [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE LOSS | ACCUMULATED OTHER COMPREHENSIVE LOSS The following table presents the changes in accumulated other comprehensive loss ("AOCL"): Three Months Ended September 30, 2021 2020 Foreign currency translation adjustments: Other comprehensive (loss) income before reclassifications $ (22,805) $ 32,776 Amounts reclassified into income (1) — 1,181 Deferred gains (losses) on cash flow hedging instruments: Other comprehensive gain (loss) before reclassifications 535 (883) Amounts reclassified into (expense) income (2) (500) 923 Deferred gains (losses) on net investment hedging instruments: Other comprehensive gain (loss) before reclassifications 1,910 (2,890) Amounts reclassified into expense (2) (103) (102) Net change in AOCL $ (20,963) $ 31,005 (1) Foreign currency translation gains or losses of foreign subsidiaries related to divested businesses are reclassified into income once the liquidation of the respective foreign subsidiaries is substantially complete. During the three months ended September 30, 2020, the Company reclassified $1,181 of translation losses from AOCL to Other income, net on the Consolidated Statement of Operations. (2) See Note 15, Derivatives and Hedging Activities, for the amounts reclassified into income for deferred gains (losses) on cash flow hedging instruments recorded in the Consolidated Statements of Operations in the three months ended September 30, 2021 and 2020. |
STOCK-BASED COMPENSATION AND IN
STOCK-BASED COMPENSATION AND INCENTIVE PERFORMANCE PLANS | 3 Months Ended |
Sep. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
STOCK-BASED COMPENSATION AND INCENTIVE PERFORMANCE PLANS | STOCK-BASED COMPENSATION AND INCENTIVE PERFORMANCE PLANS The Company has a stockholder approved plan, the Amended and Restated 2002 Long-Term Incentive and Stock Award Plan (the "2002 Plan"), under which the Company’s officers, senior management, other key employees, consultants and directors may be granted equity-based awards. The Company also grants shares under its 2019 Equity Inducement Award Program (the "2019 Inducement Program") to induce selected individuals to become employees of the Company. The 2002 Plan and 2019 Inducement Program are collectively referred to as the "Stock Award Plans". In conjunction with the Stock Award Plans, the Company maintains a long-term incentive program (the “LTI Program”) that provides for performance and market equity awards that can be earned over defined performance periods. The Company's plans are described in Note 14, Stock-Based Compensation and Incentive Performance Plans , in the Notes to the Consolidated Financial Statements in the Form 10-K. Compensation cost and related income tax benefits recognized in the Consolidated Statements of Operations for stock-based compensation plans were as follows: Three Months Ended September 30, 2021 2020 Selling, general and administrative expense $ 4,287 $ 4,367 Related income tax benefit $ 273 $ 807 Restricted Stock Awards of restricted stock are either restricted stock awards ("RSAs") or restricted stock units ("RSUs") that are issued at no cost to the recipient. Performance-based or market-based RSUs are issued in the form of performance share units ("PSUs"). A summary of the restricted stock activity (including all RSAs, RSUs and PSUs) for the three months ended September 30, 2021 is as follows: Number of Shares and Units Weighted Average Grant Date Fair Value (per share) Non-vested RSAs, RSUs and PSUs outstanding at June 30, 2021 1,780 $ 16.55 Granted 12 $ 39.81 Vested (61) $ 21.78 Forfeited (103) $ 15.43 Non-vested RSAs, RSUs and PSUs outstanding at September 30, 2021 1,628 $ 16.53 At September 30, 2021 and June 30, 2021, the table above includes a total of 1,299 and 1,382 shares (including an inducement grant of 350 shares made to our CEO as previously disclosed), respectively, that represent the target number of shares that may be earned under non-vested performance equity awards that are eligible to vest up to 300% of target. Vested shares during the current period include a total of 13 shares which vested based on certain performance-based metrics being met. Three Months Ended September 30, 2021 2020 Fair value of RSAs, RSUs and PSUs granted $ 478 $ 4,398 Fair value of shares vested $ 2,522 $ 1,056 Tax benefit recognized from restricted shares vesting $ 246 $ 152 At September 30, 2021, there was $5,169 of unrecognized stock-based compensation expense related to non-vested restricted stock awards which is expected to be recognized over a weighted average period of 1.1 years. |
INVESTMENTS
INVESTMENTS | 3 Months Ended |
Sep. 30, 2021 | |
Equity Method Investments and Joint Ventures [Abstract] | |
INVESTMENTS | INVESTMENTS On October 27, 2015, the Company acquired a minority equity interest in Chop’t Creative Salad Company LLC, predecessor to Founders Table Restaurant Group, LLC (“Founders Table”). Founders Table develops and operates fast-casual, fresh salad restaurants in the Northeast and Mid-Atlantic United States. The investment is being accounted for as an equity method investment due to the Company’s representation on the Board of Directors of Founders Table. At September 30, 2021 and June 30, 2021, the carrying value of the Company’s investment in Chop’t was $10,161 and $10,699, respectively, and is included in the Consolidated Balance Sheets as a component of Investments and joint ventures. The Company also holds the following investments: (a) Hutchison Hain Organic Holdings Limited (“HHO”) with Hutchison China Meditech Ltd., a joint venture accounted for under the equity method of accounting, (b) Hain Future Natural Products Private Ltd. with Future Consumer Ltd, a joint venture accounted for under the equity method of accounting, and (c) Yeo Hiap Seng Limited, for which the Company holds a less than 1% eq uity ownership interest. The carrying value of these combined investments was $6,557 and $6,218 as of September 30, 2021 and June 30, 2021, respectively, and is included in the Consolidated Balance Sheets as a component of Investments and joint ventures. |
FINANCIAL INSTRUMENTS MEASURED
FINANCIAL INSTRUMENTS MEASURED AT FAIR VALUE | 3 Months Ended |
Sep. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
FINANCIAL INSTRUMENTS MEASURED AT FAIR VALUE | FINANCIAL INSTRUMENTS MEASURED AT FAIR VALUE The Company’s financial assets and liabilities measured at fair value are required to be grouped in one of three levels. The levels prioritize the inputs used to measure the fair value of the assets or liabilities. These levels are: • Level 1 – Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; • Level 2 – Quoted prices in markets that are not active, or inputs which are observable, either directly or indirectly, for substantially the full term of the asset or liability; and • Level 3 – Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e., supported by little or no market activity). The following table presents assets and liabilities measured at fair value on a recurring basis as of September 30, 2021: Total Quoted prices in active markets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Assets: Derivative financial instruments 746 — 746 — Equity investment 590 590 — — Total $ 1,336 $ 590 $ 746 $ — Liabilities: Derivative financial instruments $ 9,007 $ — $ 9,007 $ — Total $ 9,007 $ — $ 9,007 $ — The following table presents assets and liabilities measured at fair value on a recurring basis as of June 30, 2021: Total Quoted prices in active markets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Assets: Derivative financial instruments 699 — 699 — Equity investment 646 646 — — Total $ 1,345 $ 646 $ 699 $ — Liabilities: Derivative financial instruments $ 11,968 $ — $ 11,968 $ — Total $ 11,968 $ — $ 11,968 $ — The equity investment consists of the Company’s less than 1% investment in Yeo Hiap Seng Limited, a food and beverage manufacturer and distributor based in Singapore. Fair value is measured using the market approach based on quoted prices. The Company utilizes the income approach to measure fair value for its foreign currency forward contracts. The income approach uses pricing models that rely on market observable inputs such as yield curves, currency exchange rates and forward prices. There were no transfers of financial instruments between the three levels of fair value hierarchy during the three months ended September 30, 2021 or 2020. The carrying amount of cash and cash equivalents, accounts receivable, net, accounts payable and certain accrued expenses and other current liabilities approximate fair value due to the short-term maturities of these financial instruments. The Company’s debt approximates fair value due to the debt bearing fluctuating market interest rates (see Note 9, Debt and Borrowings ). In addition to the instruments named above, the Company also makes fair value measurements in connection with its interim and annual goodwill and tradename impairment testing. These measurements fall into Level 3 of the fair value hierarchy (See Note 8, Goodwill and Other Intangible Assets ). Derivative Instruments The Company uses interest rate swaps to manage its interest rate risk and cross-currency swaps and foreign currency exchange contracts to manage its exposure to fluctuations in foreign currency exchange rates. The valuation of these instruments is determined using widely accepted valuation techniques, including discounted cash flow analysis on the expected cash flows of each derivative. This analysis reflects the contractual terms of the derivatives, including the period to maturity, and uses observable market-based inputs, including interest rate curves and implied volatilities. The fair values of interest rate swaps are determined using the market standard methodology of netting the discounted future fixed cash receipts (or payments) and the discounted expected variable cash payments (or receipts). The variable cash payments (or receipts) are based on an expectation of future interest rates (forward curves) derived from observable market interest rate curves. In accordance with the provisions of ASC 820, Fair Value Measurements , the Company incorporates credit valuation adjustments to appropriately reflect both the Company’s nonperformance risk and the respective counterparty’s nonperformance risk in the fair value measurements. In adjusting the fair value of the Company’s derivative contracts for the effect of nonperformance risk, the Company has considered the impact of netting and any applicable credit enhancements, such as collateral postings, thresholds, mutual puts and guarantees. Although the Company has determined that the majority of the inputs used to value its derivatives fall within Level 2 of the fair value hierarchy, the credit valuation adjustments associated with its derivatives utilize Level 3 inputs, such as estimates of current credit spreads to evaluate the likelihood of default by the Company and its counterparties. The Company has also determined that the significance of the impact of the credit valuation adjustments made to its derivative contracts, which determination was based on the fair value of each individual contract, was not significant to the overall valuation. As a result, all of the derivatives held as of September 30, 2021 and June 30, 2021 were classified as Level 2 of the fair value hierarchy. The fair value estimates presented in the fair value hierarchy tables above are based on information available to management as of September 30, 2021 and June 30, 2021. These estimates are not necessarily indicative of the amounts we could ultimately realize. |
DERIVATIVES AND HEDGING ACTIVIT
DERIVATIVES AND HEDGING ACTIVITIES | 3 Months Ended |
Sep. 30, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVES AND HEDGING ACTIVITIES | DERIVATIVES AND HEDGING ACTIVITIES Risk Management Objective of Using Derivatives The Company is exposed to certain risks arising from both its business operations and economic conditions. The Company principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Company manages economic risks, including interest rate, liquidity and credit risk primarily by managing the amount, sources and duration of its assets and liabilities and the use of derivative financial instruments. Specifically, the Company enters into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates. The Company’s derivative financial instruments are used to manage differences in the amount, timing and duration of the Company’s known or expected cash receipts and its known or expected cash payments principally related to the Company’s receivables and borrowings. Certain of the Company’s foreign operations expose the Company to fluctuations of foreign exchange rates. These fluctuations may impact the value of the Company’s cash receipts and payments in terms of the Company’s functional currency. The Company enters into derivative financial instruments to protect the value or fix the amount of certain assets and liabilities in terms of its functional currency, the U.S. dollar. Accordingly, the Company uses derivative financial instruments to manage and mitigate such risks. The Company does not use derivatives for speculative or trading purposes. Cash Flow Hedges of Interest Rate Risk The Company’s objectives in using interest rate derivatives are to add stability to interest expense and to manage its exposure to interest rate movements. To accomplish this objective, the Company primarily uses interest rate swaps as part of its interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt of variable amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. During the three months ended September 30, 2021, such derivatives were used to hedge the variable cash flows associated with existing variable rate debt. For derivatives designated and that qualify as cash flow hedges of interest rate risk, the gain or loss on the derivative is recorded in AOCL and subsequently reclassified into interest expense in the same period during which the hedged transaction affects earnings. Amounts reported in AOCL related to derivatives will be reclassified to interest expense as interest payments are made on the Company’s variable rate deb t. During the remaining nine months of fiscal 2022, the Company estimates that an additional $283 will be reclassified as an increase to interest expense. As of September 30, 2021, the Company had the following outstanding interest rate derivatives that were designated as cash flow hedges of interest rate risk: Interest Rate Derivative Number of Instruments Notional Amount Interest Rate Swap 4 $230,000 Cash Flow Hedges of Foreign Exchange Risk The Company is exposed to fluctuations in various foreign currencies against its functional currency, the U.S. Dollar. The Company uses foreign currency derivatives including cross-currency swaps to manage its exposure to fluctuations in the USD-EUR exchange rates. Cross-currency swaps involve exchanging fixed-rate interest payments for fixed-rate interest receipts, both of which will occur at the USD-EUR forward exchange rates in effect upon entering into the instr ument. The Company, at times, also uses forward contracts to manage its exposure to fluctuations in the GBP-EUR exchange rates. The Company designates these derivatives as cash flow hedges of foreign exchange risks. For derivatives designated and that qualify as cash flow hedges of foreign exchange risk, the gain or loss on the derivative is recorded in AOCL and subsequently reclassified in the period(s) during which the hedged transaction affects earnings within the same income statement line item as the earnings effect of the hedged transaction . During the remaining nine months of fiscal 2022, the Company estimates that an additional $127 relating to cross-currency swaps will be reclassified as a decrease to interest expense. As of September 30, 2021, the Company had the following outstanding foreign currency derivatives that were used to hedge its foreign exchange risks: Foreign Currency Derivative Number of Instruments Notional Sold Notional Purchased Cross-currency swap 1 €24,700 $26,775 Foreign currency forward contract 6 £5,142 €6,000 Net Investment Hedges The Company is exposed to fluctuations in foreign exchange rates on investments it holds in its European foreign entities and their exposure to the Euro. The Company uses fixed-to-fixed cross-currency swaps to hedge its exposure to changes in the foreign exchange rate on its foreign investment in Europe. Currency forward agreements involve fixing the USD-EUR exchange rate for delivery of a specified amount of foreign currency on a specified date. The currency forward agreements are typically cash settled in U.S. Dollars for their fair value at or close to their settlement date. Cross-currency swaps involve the receipt of functional-currency-fixed-rate amounts from a counterparty in exchange for the Company making foreign-currency fixed-rate payments over the life of the agreement. For derivatives designated as net investment hedges, the gain or loss on the derivative is reported in AOCL as part of the cumulative translation adjustment. Amounts are reclassified out of AOCL into earnings when the hedged net investment is either sold or substantially liquidated. As of September 30, 2021, the Company had the following outstanding foreign currency derivatives that were used to hedge its net investments in foreign operations: Foreign Currency Derivative Number of Instruments Notional Sold Notional Purchased Cross-currency swap 2 €76,969 $83,225 Non-Designated Hedges Derivatives not designated as hedges are not speculative and are used to manage the Company’s exposure to interest rate movements and other identified risks but do not meet the strict hedge accounting requirements and/or the Company has not elected to apply hedge accounting. Changes in the fair value of derivatives not designated in hedging relationships are recorded directly in earnings. As of September 30, 2021 the Company had no outstanding derivatives that were not designated as hedges in qualifying hedging relationships. Designated Hedges The following table presents the fair value of the Company’s derivative financial instruments as well as their classification on the Consolidated Balance Sheet as of September 30, 2021: Asset Derivatives Liability Derivatives Balance Sheet Location Fair Value Balance Sheet Location Fair Value Derivatives designated as hedging instruments: Interest rate swaps Prepaid expenses and other current assets $ 49 Accrued expenses and other current liabilities / Other noncurrent liabilities $ 330 Cross-currency swaps Prepaid expenses and other current assets 697 Other noncurrent liabilities 8,677 Total derivatives designated as hedging instruments $ 746 $ 9,007 The following table presents the fair value of the Company’s derivative financial instruments as well as their classification on the Consolidated Balance Sheet as of June 30, 2021: Asset Derivatives Liability Derivatives Balance Sheet Location Fair Value Balance Sheet Location Fair Value Derivatives designated as hedging instruments: Interest rate swaps Prepaid expenses and other current assets $ 43 Accrued expenses and other current liabilities / Other noncurrent liabilities $ 312 Cross-currency swaps Prepaid expenses and other current assets 656 Other noncurrent liabilities 11,656 Total derivatives designated as hedging instruments $ 699 $ 11,968 The following table presents the pre-tax effect of cash flow hedge accounting on AOCL as of September 30, 2021 and 2020: Derivatives in Cash Flow Hedging Relationships Amount of Gain (Loss) Recognized in AOCL on Derivatives Location of Gain (Loss) Reclassified from AOCL into Income Amount of Gain (Loss) Reclassified from AOCL into Income Three Months Ended September 30, Three Months Ended September 30, 2021 2020 2021 2020 Interest rate swaps $ (117) $ 61 Interest and other financing expense, net $ (104) $ (58) Cross-currency swaps 776 (1,177) Interest and other financing expense, net / Other expense (income), net 738 (1,183) Foreign currency forward contracts 19 (2) Cost of sales — 73 Total $ 678 $ (1,118) $ 634 $ (1,168) The following table presents the pre-tax effect of the Company’s derivative financial instruments electing cash flow hedge accounting on the Consolidated Statements of Operations as of September 30, 2021 and 2020: Location and Amount of Gain (Loss) Recognized in the Consolidated Statement of Operations on Cash Flow Hedging Relationships Three Months Ended September 30, 2021 Three Months Ended September 30, 2020 Cost of sales Interest and other financing expense, net Other expense (income), net Cost of sales Interest and other financing expense, net Other expense (income), net The effects of cash flow hedging: Gain (loss) on cash flow hedging relationships Interest rate swaps Amount of loss reclassified from AOCL into income $ — $ (104) $ — $ — $ (58) $ — Cross-currency swaps Amount of gain (loss) reclassified from AOCL into income $ — $ 41 $ 697 $ — $ 41 $ (1,224) Foreign currency forward contracts Amount of gain reclassified from AOCL into income $ — $ — $ — $ 73 $ — $ — The following table presents the pre-tax effect of the Company’s net investment hedges on AOCL and the Consolidated Statements of Operations as of September 30, 2021 and 2020: Derivatives in Net Investment Hedging Relationships Amount of Gain (Loss) Recognized in AOCL on Derivatives Location of Gain (Loss) Recognized in Income on Derivatives Amount of Gain (Loss) Recognized in Income on Derivatives Three Months Ended September 30, Three Months Ended September 30, 2021 2020 2021 2020 Cross-currency swaps $ 2,417 $ (3,658) Interest and other financing expense, net $ 130 $ 129 Non-Designated Hedges The following table presents the effect of the Company’s derivative financial instruments that are not designated as hedging instruments on the Consolidated Statements Operations as of September 30, 2021 and 2020: Derivatives Not Designated as Hedging Instruments Location of Gain (Loss) Recognized in Income on Derivative Amount of Gain (Loss) Recognized in Income on Derivatives Three Months Ended September 30, 2021 2020 Foreign currency forward contracts Other expense (income), net $ — $ 124 Credit-Risk-Related Contingent Features The Company has agreements with each of its derivative counterparties that contain a provision providing that upon certain defaults by the Company on any of its indebtedness, the Company could also be declared in default on its derivative obligations. |
TERMINATION BENEFITS RELATED TO
TERMINATION BENEFITS RELATED TO PRODUCTIVITY AND TRANSFORMATION INITIATIVES | 3 Months Ended |
Sep. 30, 2021 | |
Restructuring and Related Activities [Abstract] | |
TERMINATION BENEFITS RELATED TO PRODUCTIVITY AND TRANSFORMATION INITIATIVES | TERMINATION BENEFITS RELATED TO PRODUCTIVITY AND TRANSFORMATION INITIATIVES As a part of the ongoing productivity and transformation initiatives related to the Company’s strategic objective to expand profit margins and cash flow, the Company initiated a reduction in workforce at targeted locations in the United States as well as at certain locations internationally. The reduction in workforce associated with these initiatives are expected to result in charges throughout fiscal 2022. The following table displays the termination benefits and personnel realignment activities and liability balances relating to the reduction in workforce for the period ended as of September 30, 2021: Balance at June 30, 2021 Charges Amounts Paid Foreign Currency Translation & Other Adjustments Balance at September 30, 2021 Termination benefits and personnel realignment $ 4,448 $ 285 $ (2,539) $ (12) $ 2,182 The liability balance as of September 30, 2021 and June 30, 2021 is included within Accrued expenses and other current liabilities on the Company’s Consolidated Balance Sheets. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Sep. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Securities Class Actions Filed in Federal Court On August 17, 2016, three securities class action complaints were filed in the Eastern District of New York against the Company alleging violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934. The three complaints are: (1) Flora v. The Hain Celestial Group, Inc., et al. (the “Flora Complaint”); (2) Lynn v. The Hain Celestial Group, Inc., et al. (the “Lynn Complaint”); and (3) Spadola v. The Hain Celestial Group, Inc., et al. (the “Spadola Complaint” and, together with the Flora and Lynn Complaints, the “Securities Complaints”). On June 5, 2017, the court issued an order for consolidation, appointment of Co-Lead Plaintiffs and approval of selection of co-lead counsel. Pursuant to this order, the Securities Complaints were consolidated under the caption In re The Hain Celestial Group, Inc. Securities Litigation (the “Consolidated Securities Action”), and Rosewood Funeral Home and Salamon Gimpel were appointed as Co-Lead Plaintiffs. On June 21, 2017, the Company received notice that plaintiff Spadola voluntarily dismissed his claims without prejudice to his ability to participate in the Consolidated Securities Action as an absent class member. The Co-Lead Plaintiffs in the Consolidated Securities Action filed a Consolidated Amended Complaint on August 4, 2017 and a Corrected Consolidated Amended Complaint on September 7, 2017 on behalf of a purported class consisting of all persons who purchased or otherwise acquired Hain Celestial securities between November 5, 2013 and February 10, 2017 (the “Amended Complaint”). The Amended Complaint named as defendants the Company and certain of its former officers (collectively, “Defendants”) and asserted violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 based on allegedly materially false or misleading statements and omissions in public statements, press releases and SEC filings regarding the Company’s business, prospects, financial results and internal controls. Defendants filed a motion to dismiss the Amended Complaint on October 3, 2017 which the Court granted on March 29, 2019, dismissing the case in its entirety, without prejudice to replead. Co-Lead Plaintiffs filed a Second Amended Consolidated Class Action Complaint on May 6, 2019 (the “Second Amended Complaint”). The Second Amended Complaint again named as defendants the Company and certain of its former officers and asserts violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 based on allegations similar to those in the Amended Complaint, including materially false or misleading statements and omissions in public statements, press releases and SEC filings regarding the Company’s business, prospects, financial results and internal controls. Defendants filed a motion to dismiss the Second Amended Complaint on June 20, 2019. Co-Lead Plaintiffs filed an opposition on August 5, 2019, and Defendants submitted a reply on September 3, 2019. On April 6, 2020, the Court granted Defendants' motion to dismiss the Second Amended Complaint in its entirety, with prejudice. Co-Lead Plaintiffs filed a notice of appeal on May 5, 2020 indicating their intent to appeal the Court’s decision dismissing the Second Amended Complaint to the United States Court of Appeals for the Second Circuit. Co-Lead Plaintiffs filed their appellate brief on August 18, 2020. Defendants filed their opposition brief on November 17, 2020, and Plaintiffs filed their reply brief on December 8, 2020. Accordingly, Co-Lead Plaintiffs’ appeal is fully briefed. Oral argument took place on September 27, 2021. The parties await a decision. Additional Stockholder Class Action and Derivative Complaints Filed in Federal Court On April 19, 2017 and April 26, 2017, two class action and stockholder derivative complaints were filed in the Eastern District of New York against the former Board of Directors and certain former officers of the Company under the captions Silva v. Simon, et al. (the “Silva Complaint”) and Barnes v. Simon, et al. (the “Barnes Complaint”), respectively. Both the Silva Complaint and the Barnes Complaint allege violation of securities law, breach of fiduciary duty, waste of corporate assets and unjust enrichment. On May 23, 2017, an additional stockholder filed a complaint under seal in the Eastern District of New York against the former Board of Directors and certain former officers of the Company. The complaint alleged that the Company’s former directors and certain former officers made materially false and misleading statements in press releases and SEC filings regarding the Company’s business, prospects and financial results. The complaint also alleged that the Company violated its by-laws and Delaware law by failing to hold its 2016 Annual Stockholders Meeting and includes claims for breach of fiduciary duty, unjust enrichment and corporate waste. On August 9, 2017, the Court granted an order to unseal this case and reveal Gary Merenstein as the plaintiff (the “Merenstein Complaint”). On August 10, 2017, the court granted the parties' stipulation to consolidate the Barnes Complaint, the Silva Complaint and the Merenstein Complaint under the caption In re The Hain Celestial Group, Inc. Stockholder Class and Derivative Litigation (the “Consolidated Stockholder Class and Derivative Action”) and to appoint Robbins Arroyo LLP and Scott+Scott as Co-Lead Counsel, with the Law Offices of Thomas G. Amon as Liaison Counsel for Plaintiffs. On September 14, 2017, a related complaint was filed under the caption Oliver v. Berke, et al. (the “Oliver Complaint”), and on October 6, 2017, the Oliver Complaint was consolidated with the Consolidated Stockholder Class and Derivative Action. The Plaintiffs filed their consolidated amended complaint under seal on October 26, 2017. On December 20, 2017, the parties agreed to stay Defendants’ time to answer, move, or otherwise respond to the consolidated amended complaint through and including 30 days after a decision was rendered on the motion to dismiss the Amended Complaint in the Consolidated Securities Action, described above. On March 29, 2019, the Court in the Consolidated Securities Action granted Defendants’ motion, dismissing the Amended Complaint in its entirety, without prejudice to replead. Co-Lead Plaintiffs in the Consolidated Securities Action filed the Second Amended Complaint on May 6, 2019. The parties to the Consolidated Stockholder Class and Derivative Action agreed to continue the stay of Defendants’ time to answer, move, or otherwise respond to the consolidated amended complaint through 30 days after a decision on Defendants' motion to dismiss the Second Amended Complaint in the Consolidated Securities Action. On April 6, 2020, the Court granted Defendants’ motion to dismiss the Second Amended Complaint in the Consolidated Securities Action, with prejudice. Pursuant to the terms of the stay, Defendants in the Consolidated Stockholder Class and Derivative Action had until May 6, 2020 to answer, move, or otherwise respond to the complaint in this matter. This deadline was extended, and Defendants moved to dismiss the Consolidated Stockholder Class and Derivative Action Complaint on June 23, 2020, with Plaintiffs’ opposition due August 7, 2020. On July 24, 2020, Plaintiffs made a stockholder litigation demand on the current Board containing overlapping factual allegations to those set forth in the Consolidated Stockholder Class and Derivative Action. On August 10, 2020, the Court vacated the briefing schedule on Defendants’ pending motion to dismiss in order to give the Board of Directors time to consider the demand. On each of September 8 and October 8, 2020, the Court extended its stay of any applicable deadlines for 30 days to give the Board of Directors additional time to complete its evaluation of the demand. On November 3, 2020, Plaintiffs were informed that the Board of Directors had finished investigating and resolved, among other things, that the demand should be rejected. On November 6, 2020, Plaintiffs and Defendants notified the Court that Plaintiffs were evaluating the rejection of the demand, sought certain additional information and were assessing next steps, and requested that the Court extend the stay for an additional 30 days, to on or around December 7, 2020. Since that time, Plaintiffs and Defendants have filed a number of joint status reports, requesting that the Court stay applicable deadlines to allow for the production of certain materials by the Board of Directors for review by Plaintiffs. The current stay ordered by the Court is set to expire on December 30, 2021. Baby Food Litigation Since February 2021, a large number of consumer class actions have been brought against the Company alleging that the Company’s Earth’s Best baby food products (the “Products”) contain unsafe and undisclosed levels of various naturally-occurring heavy metals, namely lead, arsenic, cadmium and mercury. There are currently 29 active lawsuits, which generally allege that the Company violated various state consumer protection laws and make other state and common law warranty and unjust enrichment claims related to the alleged failure to disclose the presence of these metals and that consumers would have allegedly either not purchased the Products or would have paid less for them had the Company made adequate disclosures. These putative class actions seek to certify a nationwide class of consumers as well as various state subclasses. One of the consumer class actions ( Kathryn Gavula, et. al. v. Beech-Nut Nutrition Co., et. al. ) filed in the U.S. District Court for the District of Oregon alleges that the Company violated the Racketeer Influenced and Corrupt Organizations Act (“RICO”) by conspiring with other baby food manufacturers to conceal the presence of these heavy metals in our respective products. These actions have been filed against all of the major baby food manufacturers in federal courts across the country. The U.S. Judicial Panel on Multidistrict Litigation (“JPML”) declined a request to centralize all of the consumer class action lawsuits against all of the baby food manufacturers into a single multidistrict proceeding, and the vast majority of cases against the Company have now been transferred and consolidated in the U.S. District Court for the Eastern District of New York, In re Hain Celestial Heavy Metals Baby Food Litigation , Case No. 2:21-cv-678. One consumer class action is pending in New York Supreme Court, Nassau County. The Company has moved to stay or transfer this case to the consolidated proceeding in the Eastern District of New York and that motion is pending. The Company denies the allegations in these lawsuits and contends that its baby foods are safe and properly labeled. The claims raised in these lawsuits were brought in the wake of a highly publicized report issued by the U.S. House of Representatives Subcommittee on Economic and Consumer Policy on Oversight and Reform, dated February 4, 2021 (the “House Report”), addressing the presence of heavy metals in baby foods made by certain manufacturers, including the Company. Since the publishing of the House Report, the Company has also received information requests with respect to the advertising and quality of its baby foods from certain governmental authorities, as such authorities investigate the claims made in the House Report. The Company is fully cooperating with these requests and is providing documents and other requested information. The Company has been named in one civil government enforcement action, State of New Mexico ex rel. Balderas v. Nurture, Inc., et al., which was filed by the New Mexico Attorney General against the Company and several other manufacturers based on the alleged presence of heavy metals in their baby food products. The Company and several other manufacturers have moved to dismiss the New Mexico Attorney General’s lawsuit, and that motion to dismiss is currently pending. In addition to the consumer class actions discussed above, the Company is currently named in four lawsuits in state and federal courts alleging some form of personal injury from the ingestion of the Company’s Products, purportedly due to unsafe and undisclosed levels of various naturally occurring heavy metals. Two of these lawsuits name multiple plaintiffs alleging claims of physical injuries. These lawsuits generally allege injuries related to neurological development disorders such as autism and attention deficit hyperactivity disorder. The Company denies that its Products led to any of these injuries and will defend the cases vigorously. Other In addition to the litigation described above, the Company is and may be a defendant in lawsuits from time to time in the normal course of business. While the results of litigation and claims cannot be predicted with certainty, the Company believes the reasonably possible losses of such matters, individually and in the aggregate, are not material. Additionally, the Company believes the probable final outcome of such matters will not have a material adverse effect on the Company’s consolidated results of operations, financial position, cash flows or liquidity. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 3 Months Ended |
Sep. 30, 2021 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | SEGMENT INFORMATION Our organization structure consist of two geographic based reportable segments: North America and International. Our North America reportable segment consists of the United States and Canada as operating segments. Our International reportable segment is comprised of three operating segments: United Kingdom, Ella’s Kitchen UK and Europe. This structure is in line with how our Chief Operating Decision Maker (“CODM”) assesses our performance and allocates resources. We use segment net sales and operating income to evaluate performance and to allocate resources. We believe these measures are most relevant in order to analyze segment results and trends. Segment operating income excludes certain general corporate expenses (which are a component of selling, general and administrative expenses), impairment and acquisition related expenses, restructuring, integration and other charges. 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 September 30, 2021 2020 Net Sales: North America $ 265,525 $ 280,668 International 189,378 217,959 $ 454,903 $ 498,627 Operating Income (Loss): North America $ 16,842 $ 33,256 International 24,069 (15,889) 40,911 17,367 Corporate and Other (a) (15,364) (14,087) $ 25,547 $ 3,280 (a) In addition to general Corporate and Other expenses as described above, for the three months ended September 30, 2021, Corporate and Other includes $2,057 of Productivity and transformation costs. For the three months ended September 30, 2020, Corporate and Other includes $803 of Productivity and transformation costs. The Company's net sales by product category are as follows: Three Months Ended September 30, 2021 2020 Grocery $ 301,553 $ 343,749 Snacks 85,892 81,159 Personal Care 40,366 48,982 Tea 27,092 24,737 Total $ 454,903 $ 498,627 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 September 30, 2021 2020 United States $ 233,487 $ 239,717 United Kingdom 123,748 157,169 All Other 97,668 101,741 Total $ 454,903 $ 498,627 The Company’s long-lived assets, which primarily represent net property, plant and equipment, operating lease right-of-use assets and noncurrent other assets by geographic area were as follows: September 30, June 30, United States $ 146,858 $ 148,950 United Kingdom 144,200 142,973 All Other 109,755 112,864 Total $ 400,813 $ 404,787 |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 3 Months Ended |
Sep. 30, 2021 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | RELATED PARTY TRANSACTIONS On April 15, 2021, the Company completed the divestiture of its North America non-dairy beverages brands, Dream ® and WestSoy ® , for $31,320. The purchaser in this transaction was SunOpta Inc. (“SunOpta”). The non-employee chair of the Company's Board of Directors is also the chair of the board of SunOpta. SunOpta is also one of the Company’s suppliers, for which the Company incurs expenses in the ordinary course of business. The Company incurred expenses of $220 and $4,810 in the three months ended September 30, 2021 and 2020, respectively, to the supplier and affiliated entities. |
BASIS OF PRESENTATION (Policies
BASIS OF PRESENTATION (Policies) | 3 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation | BASIS OF PRESENTATION The Company’s unaudited consolidated financial statements include the accounts of the Company and its wholly-owned and majority-owned subsidiaries. Intercompany accounts and transactions have been eliminated in consolidation. Investments in affiliated companies in which the Company exerts significant influence, but which it does not control, are accounted for under the equity method of accounting. As such, consolidated net income includes the Company's equity in the current earnings or losses of such companies. The Company's unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) for interim financial information and the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and notes required by U.S. GAAP and should be read in conjunction with the Company's Annual Report on Form 10-K for the fiscal year ended June 30, 2021 (the “Form 10-K”). The amounts as of and for the periods ended June 30, 2021 are derived from the Company’s audited annual financial statements. The unaudited consolidated financial statements reflect all normal recurring adjustments which, in management’s opinion, are necessary for a fair presentation for interim periods. Operating results for the three months ended September 30, 2021 are not necessarily indicative of the results that may be expected for the fiscal year ending June 30, 2022. Please refer to the Notes to the Consolidated Financial Statements as of June 30, 2021 and for the fiscal year then ended included in the Form 10-K for information not included in these condensed notes. All amounts in the unaudited consolidated financial statements, notes and tables have been rounded to the nearest thousand, except par values and per share amounts, unless otherwise indicated. |
Reclassifications | Reclassifications Certain prior year amounts have been reclassified to conform with current year presentation. |
Transfer of Financial Assets | Transfer of Financial Assets The Company has non-recourse accounts receivable financing arrangements in which eligible receivables are sold to third-party buyers in exchange for cash. The Company transferred accounts receivables in their entirety to the buyers and satisfied all of the conditions to report the transfer of financial assets in their entirety as a sale. The principal amount of receivables sold under these arrangements was $22,889 and $14,360 during the three months ended September 30, 2021 and 2020 , respectively. The incremental cost of accounts receivable financing arrangements is included in Interest and other financing expense, net in the Company’s Consolidated Statements of Operations. The proceeds from the sale of receivables are included in cash from operating activities in the accompanying Consolidated Statements of Cash Flows. |
Significant Accounting Policies | Significant Accounting Policies The Company's significant accounting policies are described in Note 2, Summary of Significant Accounting Policies and Practices , in the Notes to the Consolidated Financial Statements in the Form 10-K. |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements Issued by the Financial Accounting Standards Board (“FASB”), ASC 815, Derivatives and Hedging (“ASC 815”), provides the disclosure requirements for derivatives and hedging activities with the intent to provide users of financial statements with an enhanced understanding of: (a) how and why an entity uses derivative instruments, (b) how the entity accounts for derivative instruments and related hedged items and (c) how derivative instruments and related hedged items affect an entity’s financial position, financial performance and cash flows. Further, ASC 815 requires qualitative disclosures that explain the Company’s objectives and strategies for using derivatives, as well as quantitative disclosures about the fair value of and gains and losses on derivative instruments, and disclosures about credit-risk-related contingent features in derivative instruments. During the first quarter of fiscal year 2022, the Company adopted the hedge accounting expedients related to probability and the assessments of effectiveness for future LIBOR-indexed cash flows to assume that the index upon which future hedged transactions will be based matches the index on the corresponding derivatives. Application of these expedients preserves the presentation of derivatives consistent with past presentation. The Company continues to evaluate the impact of the guidance and may apply other elections as applicable as additional changes in the market occur. |
EARNINGS (LOSS) PER SHARE (Tabl
EARNINGS (LOSS) PER SHARE (Tables) | 3 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share [Abstract] | |
Computation of Basic And Diluted Earnings Per Share | The following table sets forth the computation of basic and diluted net income (loss) per share: Three Months Ended September 30, 2021 2020 Numerator: Net income (loss) from continuing operations $ 19,411 $ (10,781) Net income from discontinued operations — 11,266 Net income $ 19,411 $ 485 Denominator: Basic weighted average shares outstanding 97,121 101,558 Effect of dilutive stock options, unvested restricted stock and unvested restricted share units 317 — Diluted weighted average shares outstanding 97,438 101,558 Basic net income (loss) per common share: Continuing operations $ 0.20 $ (0.11) Discontinued operations — 0.11 Basic net income per common share $ 0.20 $ — Diluted net income (loss) per common share: Continuing operations $ 0.20 $ (0.11) Discontinued operations — 0.11 Diluted net income per common share $ 0.20 $ — |
DISPOSITIONS (Tables)
DISPOSITIONS (Tables) | 3 Months Ended |
Sep. 30, 2021 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of Disposal Groups, Including Discontinued Operations | The following table presents the major classes of Tilda’s results within Net income from discontinued operations, net of tax in our Consolidated Statements of Operations: Three Months Ended September 30, 2020 Net sales $ — Cost of sales — Gross profi t — Other expense 75 Net loss from discontinued operations before income taxes (75) Benefit for income taxes (1) (11,331) Net income from discontinued operations, net of tax $ 11,256 (1) Includes $11,331 of tax benefit related to the tax gain on the sale of Tilda for the three months ended September 30, 2020. |
INVENTORIES (Tables)
INVENTORIES (Tables) | 3 Months Ended |
Sep. 30, 2021 | |
Inventory Disclosure [Abstract] | |
Components Of Inventories | Inventories consisted of the following: September 30, June 30, Finished goods $ 180,604 $ 187,884 Raw materials, work-in-progress and packaging 99,572 97,526 $ 280,176 $ 285,410 |
PROPERTY, PLANT AND EQUIPMENT_2
PROPERTY, PLANT AND EQUIPMENT, NET (Tables) | 3 Months Ended |
Sep. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment, Net | Property, plant and equipment, net consisted of the following: September 30, June 30, Land $ 13,252 $ 13,666 Buildings and improvements 55,199 58,143 Machinery and equipment 306,275 306,811 Computer hardware and software 66,076 65,132 Furniture and fixtures 23,874 23,546 Leasehold improvements 56,371 54,360 Construction in progress 23,246 21,633 544,293 543,291 Less: accumulated depreciation and amortization 231,867 230,514 $ 312,426 $ 312,777 |
LEASES (Tables)
LEASES (Tables) | 3 Months Ended |
Sep. 30, 2021 | |
Leases [Abstract] | |
Lease Expenses and Other Information | The components of lease expenses for the three months ended September 30, 2021 and 2020 were as follows: Three Months Ended September 30, 2021 2020 Operating lease expenses $ 3,752 $ 3,956 Finance lease expenses 70 185 Variable lease expenses 403 866 Short-term lease expenses 1,365 913 Total lease expenses $ 5,590 $ 5,920 Additional information related to leases is as follows: Three Months Ended September 30, 2021 2020 Supplemental cash flow information Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 3,745 $ 4,359 Operating cash flows from finance leases $ 5 $ 3 Financing cash flows from finance leases $ 60 $ 85 ROU assets obtained in exchange for lease obligations: Operating leases $ 319 $ 7,766 Finance leases $ — $ 15 Weighted average remaining lease term: Operating leases 9.6 years 10.1 years Finance leases 4.1 years 2.1 years Weighted average discount rate: Operating leases 3.3 % 3.0 % Finance leases 4.2 % 2.6 % |
Supplemental Balance Sheet Information | Supplemental balance sheet information related to leases was as follows: Leases Classification September 30, 2021 June 30, 2021 Assets Operating lease ROU assets, net Operating lease right-of-use assets, net $ 88,387 $ 92,010 Finance lease ROU assets, net Property, plant and equipment, net 469 547 Total leased assets $ 88,856 $ 92,557 Liabilities Current Operating Accrued expenses and other current liabilities $ 11,216 $ 10,870 Finance Current portion of long-term debt 195 229 Non-current Operating Operating lease liabilities, noncurrent portion 82,176 85,929 Finance Long-term debt, less current portion 283 326 Total lease liabilities $ 93,870 $ 97,354 |
Maturities of Lease Liabilities | Maturities of lease liabilities as of September 30, 2021 were as follows: Fiscal Year Operating leases Finance leases Total 2022 (remainder of year) $ 10,094 $ 163 $ 10,257 2023 14,499 133 14,632 2024 12,712 51 12,763 2025 11,313 51 11,364 2026 10,741 51 10,792 Thereafter 52,096 76 52,172 Total lease payments 111,455 525 111,980 Less: Imputed interest 18,063 47 18,110 Total lease liabilities $ 93,392 $ 478 $ 93,870 |
Maturities of Lease Liabilities | Maturities of lease liabilities as of September 30, 2021 were as follows: Fiscal Year Operating leases Finance leases Total 2022 (remainder of year) $ 10,094 $ 163 $ 10,257 2023 14,499 133 14,632 2024 12,712 51 12,763 2025 11,313 51 11,364 2026 10,741 51 10,792 Thereafter 52,096 76 52,172 Total lease payments 111,455 525 111,980 Less: Imputed interest 18,063 47 18,110 Total lease liabilities $ 93,392 $ 478 $ 93,870 |
GOODWILL AND OTHER INTANGIBLE_2
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) | 3 Months Ended |
Sep. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes In Carrying Amount Of Goodwill | Goodwill The following table provides the changes in the carrying value of goodwill by reportable segment: North America International Total Balance as of June 30, 2021 $ 600,812 $ 270,255 $ 871,067 Translation and other adjustments, net (777) (6,942) (7,719) Balance as of September 30, 2021 $ 600,035 $ 263,313 $ 863,348 |
Other Intangible Assets | The following table includes the gross carrying amount and accumulated amortization, where applicable, for intangible assets, excluding goodwill: September 30, June 30, Non-amortized intangible assets: Trademarks and tradenames $ 270,084 $ 273,471 Amortized intangible assets: Other intangibles 143,884 146,856 Less: accumulated amortization (105,380) (105,432) Net carrying amount $ 308,588 $ 314,895 |
Other Intangible Assets | The following table includes the gross carrying amount and accumulated amortization, where applicable, for intangible assets, excluding goodwill: September 30, June 30, Non-amortized intangible assets: Trademarks and tradenames $ 270,084 $ 273,471 Amortized intangible assets: Other intangibles 143,884 146,856 Less: accumulated amortization (105,380) (105,432) Net carrying amount $ 308,588 $ 314,895 |
Finite-lived Intangible Assets Amortization Expense | Amortization expense included in continuing operations was as follows: Three Months Ended September 30, 2021 2020 Amortization of acquired intangibles $ 2,095 $ 2,433 |
DEBT AND BORROWINGS (Tables)
DEBT AND BORROWINGS (Tables) | 3 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Debt And Borrowings | Debt and borrowings consisted of the following: September 30, June 30, Revolving credit facility $ 344,969 $ 230,000 Other borrowings 780 1,022 345,749 231,022 Short-term borrowings and current portion of long-term debt 335 530 Long-term debt, less current portion $ 345,414 $ 230,492 |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables) | 3 Months Ended |
Sep. 30, 2021 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Loss | The following table presents the changes in accumulated other comprehensive loss ("AOCL"): Three Months Ended September 30, 2021 2020 Foreign currency translation adjustments: Other comprehensive (loss) income before reclassifications $ (22,805) $ 32,776 Amounts reclassified into income (1) — 1,181 Deferred gains (losses) on cash flow hedging instruments: Other comprehensive gain (loss) before reclassifications 535 (883) Amounts reclassified into (expense) income (2) (500) 923 Deferred gains (losses) on net investment hedging instruments: Other comprehensive gain (loss) before reclassifications 1,910 (2,890) Amounts reclassified into expense (2) (103) (102) Net change in AOCL $ (20,963) $ 31,005 (1) Foreign currency translation gains or losses of foreign subsidiaries related to divested businesses are reclassified into income once the liquidation of the respective foreign subsidiaries is substantially complete. During the three months ended September 30, 2020, the Company reclassified $1,181 of translation losses from AOCL to Other income, net on the Consolidated Statement of Operations. (2) See Note 15, Derivatives and Hedging Activities, for the amounts reclassified into income for deferred gains (losses) on cash flow hedging instruments recorded in the Consolidated Statements of Operations in the three months ended September 30, 2021 and 2020. |
STOCK-BASED COMPENSATION AND _2
STOCK-BASED COMPENSATION AND INCENTIVE PERFORMANCE PLANS (Tables) | 3 Months Ended |
Sep. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Compensation Cost And Related Income Tax Benefits Recognized | Compensation cost and related income tax benefits recognized in the Consolidated Statements of Operations for stock-based compensation plans were as follows: Three Months Ended September 30, 2021 2020 Selling, general and administrative expense $ 4,287 $ 4,367 Related income tax benefit $ 273 $ 807 |
Non-Vested Restricted Stock And Restricted Share Unit Awards | A summary of the restricted stock activity (including all RSAs, RSUs and PSUs) for the three months ended September 30, 2021 is as follows: Number of Shares and Units Weighted Average Grant Date Fair Value (per share) Non-vested RSAs, RSUs and PSUs outstanding at June 30, 2021 1,780 $ 16.55 Granted 12 $ 39.81 Vested (61) $ 21.78 Forfeited (103) $ 15.43 Non-vested RSAs, RSUs and PSUs outstanding at September 30, 2021 1,628 $ 16.53 |
Restricted Stock Grant Information | Three Months Ended September 30, 2021 2020 Fair value of RSAs, RSUs and PSUs granted $ 478 $ 4,398 Fair value of shares vested $ 2,522 $ 1,056 Tax benefit recognized from restricted shares vesting $ 246 $ 152 |
FINANCIAL INSTRUMENTS MEASURE_2
FINANCIAL INSTRUMENTS MEASURED AT FAIR VALUE (Tables) | 3 Months Ended |
Sep. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Assets And Liabilities Measured At Fair Value On A Recurring Basis | The following table presents assets and liabilities measured at fair value on a recurring basis as of September 30, 2021: Total Quoted prices in active markets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Assets: Derivative financial instruments 746 — 746 — Equity investment 590 590 — — Total $ 1,336 $ 590 $ 746 $ — Liabilities: Derivative financial instruments $ 9,007 $ — $ 9,007 $ — Total $ 9,007 $ — $ 9,007 $ — The following table presents assets and liabilities measured at fair value on a recurring basis as of June 30, 2021: Total Quoted prices in active markets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Assets: Derivative financial instruments 699 — 699 — Equity investment 646 646 — — Total $ 1,345 $ 646 $ 699 $ — Liabilities: Derivative financial instruments $ 11,968 $ — $ 11,968 $ — Total $ 11,968 $ — $ 11,968 $ — |
DERIVATIVES AND HEDGING ACTIV_2
DERIVATIVES AND HEDGING ACTIVITIES (Tables) | 3 Months Ended |
Sep. 30, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments | As of September 30, 2021, the Company had the following outstanding interest rate derivatives that were designated as cash flow hedges of interest rate risk: Interest Rate Derivative Number of Instruments Notional Amount Interest Rate Swap 4 $230,000 As of September 30, 2021, the Company had the following outstanding foreign currency derivatives that were used to hedge its foreign exchange risks: Foreign Currency Derivative Number of Instruments Notional Sold Notional Purchased Cross-currency swap 1 €24,700 $26,775 Foreign currency forward contract 6 £5,142 €6,000 As of September 30, 2021, the Company had the following outstanding foreign currency derivatives that were used to hedge its net investments in foreign operations: Foreign Currency Derivative Number of Instruments Notional Sold Notional Purchased Cross-currency swap 2 €76,969 $83,225 |
Derivative Financial Instruments and Classification on Consolidated Balance Sheets | The following table presents the fair value of the Company’s derivative financial instruments as well as their classification on the Consolidated Balance Sheet as of September 30, 2021: Asset Derivatives Liability Derivatives Balance Sheet Location Fair Value Balance Sheet Location Fair Value Derivatives designated as hedging instruments: Interest rate swaps Prepaid expenses and other current assets $ 49 Accrued expenses and other current liabilities / Other noncurrent liabilities $ 330 Cross-currency swaps Prepaid expenses and other current assets 697 Other noncurrent liabilities 8,677 Total derivatives designated as hedging instruments $ 746 $ 9,007 The following table presents the fair value of the Company’s derivative financial instruments as well as their classification on the Consolidated Balance Sheet as of June 30, 2021: Asset Derivatives Liability Derivatives Balance Sheet Location Fair Value Balance Sheet Location Fair Value Derivatives designated as hedging instruments: Interest rate swaps Prepaid expenses and other current assets $ 43 Accrued expenses and other current liabilities / Other noncurrent liabilities $ 312 Cross-currency swaps Prepaid expenses and other current assets 656 Other noncurrent liabilities 11,656 Total derivatives designated as hedging instruments $ 699 $ 11,968 |
Pre-Tax Effect of Cash Flow Hedge Accounting on Accumulated Other Comprehensive Loss | The following table presents the pre-tax effect of cash flow hedge accounting on AOCL as of September 30, 2021 and 2020: Derivatives in Cash Flow Hedging Relationships Amount of Gain (Loss) Recognized in AOCL on Derivatives Location of Gain (Loss) Reclassified from AOCL into Income Amount of Gain (Loss) Reclassified from AOCL into Income Three Months Ended September 30, Three Months Ended September 30, 2021 2020 2021 2020 Interest rate swaps $ (117) $ 61 Interest and other financing expense, net $ (104) $ (58) Cross-currency swaps 776 (1,177) Interest and other financing expense, net / Other expense (income), net 738 (1,183) Foreign currency forward contracts 19 (2) Cost of sales — 73 Total $ 678 $ (1,118) $ 634 $ (1,168) |
Pre-Tax Effect of Derivative Financial Instruments Electing Cash Flow Hedge Accounting on Consolidated Statements of Operations | The following table presents the pre-tax effect of the Company’s derivative financial instruments electing cash flow hedge accounting on the Consolidated Statements of Operations as of September 30, 2021 and 2020: Location and Amount of Gain (Loss) Recognized in the Consolidated Statement of Operations on Cash Flow Hedging Relationships Three Months Ended September 30, 2021 Three Months Ended September 30, 2020 Cost of sales Interest and other financing expense, net Other expense (income), net Cost of sales Interest and other financing expense, net Other expense (income), net The effects of cash flow hedging: Gain (loss) on cash flow hedging relationships Interest rate swaps Amount of loss reclassified from AOCL into income $ — $ (104) $ — $ — $ (58) $ — Cross-currency swaps Amount of gain (loss) reclassified from AOCL into income $ — $ 41 $ 697 $ — $ 41 $ (1,224) Foreign currency forward contracts Amount of gain reclassified from AOCL into income $ — $ — $ — $ 73 $ — $ — |
Pre-Tax Effect of Net Investment Hedges on Accumulated Other Comprehensive Loss and the Consolidated Statements of Operations | The following table presents the pre-tax effect of the Company’s net investment hedges on AOCL and the Consolidated Statements of Operations as of September 30, 2021 and 2020: Derivatives in Net Investment Hedging Relationships Amount of Gain (Loss) Recognized in AOCL on Derivatives Location of Gain (Loss) Recognized in Income on Derivatives Amount of Gain (Loss) Recognized in Income on Derivatives Three Months Ended September 30, Three Months Ended September 30, 2021 2020 2021 2020 Cross-currency swaps $ 2,417 $ (3,658) Interest and other financing expense, net $ 130 $ 129 |
Pre-Tax Effect of Derivative Financial Instruments Not Designated as Hedging Instruments on the Consolidated Statements of Operations | The following table presents the effect of the Company’s derivative financial instruments that are not designated as hedging instruments on the Consolidated Statements Operations as of September 30, 2021 and 2020: Derivatives Not Designated as Hedging Instruments Location of Gain (Loss) Recognized in Income on Derivative Amount of Gain (Loss) Recognized in Income on Derivatives Three Months Ended September 30, 2021 2020 Foreign currency forward contracts Other expense (income), net $ — $ 124 |
TERMINATION BENEFITS RELATED _2
TERMINATION BENEFITS RELATED TO PRODUCTIVITY AND TRANSFORMATION INITIATIVES (Tables) | 3 Months Ended |
Sep. 30, 2021 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Activity and Liability Balances | The following table displays the termination benefits and personnel realignment activities and liability balances relating to the reduction in workforce for the period ended as of September 30, 2021: Balance at June 30, 2021 Charges Amounts Paid Foreign Currency Translation & Other Adjustments Balance at September 30, 2021 Termination benefits and personnel realignment $ 4,448 $ 285 $ (2,539) $ (12) $ 2,182 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 3 Months Ended |
Sep. 30, 2021 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information | 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 September 30, 2021 2020 Net Sales: North America $ 265,525 $ 280,668 International 189,378 217,959 $ 454,903 $ 498,627 Operating Income (Loss): North America $ 16,842 $ 33,256 International 24,069 (15,889) 40,911 17,367 Corporate and Other (a) (15,364) (14,087) $ 25,547 $ 3,280 (a) In addition to general Corporate and Other expenses as described above, for the three months ended September 30, 2021, Corporate and Other includes $2,057 of Productivity and transformation costs. For the three months ended September 30, 2020, Corporate and Other includes $803 of Productivity and transformation costs. The Company's net sales by product category are as follows: Three Months Ended September 30, 2021 2020 Grocery $ 301,553 $ 343,749 Snacks 85,892 81,159 Personal Care 40,366 48,982 Tea 27,092 24,737 Total $ 454,903 $ 498,627 |
Net Sales Geographic Area | 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 September 30, 2021 2020 United States $ 233,487 $ 239,717 United Kingdom 123,748 157,169 All Other 97,668 101,741 Total $ 454,903 $ 498,627 |
Schedule of Long-lived Assets | The Company’s long-lived assets, which primarily represent net property, plant and equipment, operating lease right-of-use assets and noncurrent other assets by geographic area were as follows: September 30, June 30, United States $ 146,858 $ 148,950 United Kingdom 144,200 142,973 All Other 109,755 112,864 Total $ 400,813 $ 404,787 |
BUSINESS (Details)
BUSINESS (Details) | 3 Months Ended |
Sep. 30, 2021segmentcountry | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of countries in which entity operates (more than) | country | 80 |
Number of reportable segments | segment | 2 |
BASIS OF PRESENTATION (Details)
BASIS OF PRESENTATION (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Accounting Policies [Abstract] | ||
Accounts receivable sold, principal | $ 22,889 | $ 14,360 |
EARNINGS (LOSS) PER SHARE - Com
EARNINGS (LOSS) PER SHARE - Computation Of Basic And Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Earnings Per Share [Abstract] | ||
Net income (loss) from continuing operations | $ 19,411 | $ (10,781) |
Net income from discontinued operations, net of tax | 0 | 11,266 |
Net income | $ 19,411 | $ 485 |
Denominator: | ||
Basic weighted average shares outstanding (shares) | 97,121 | 101,558 |
Effect of dilutive stock options, unvested restricted stock and unvested restricted share units (shares) | 317 | 0 |
Diluted weighted average shares outstanding (shares) | 97,438 | 101,558 |
Basic net income (loss) per common share: | ||
Continuing operations (USD per share) | $ 0.20 | $ (0.11) |
Discontinued operations (USD per share) | 0 | 0.11 |
Basic net income per common share (USD per share) | 0.20 | 0 |
Diluted net income (loss) per common share: | ||
Continuing operations (USD per share) | 0.20 | (0.11) |
Discontinued operations (USD per share) | 0 | 0.11 |
Diluted net income per common share (USD per share) | $ 0.20 | $ 0 |
EARNINGS (LOSS) PER SHARE - Nar
EARNINGS (LOSS) PER SHARE - Narrative (Details) - USD ($) $ / shares in Units, shares in Thousands | 3 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Aug. 31, 2021 | Jun. 21, 2017 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Authorized amount to be repurchased | $ 300,000,000 | $ 250,000,000 | ||
Number of shares repurchased (in shares) | 4,525 | 1,281 | ||
Shares repurchased value | $ 175,597,000 | $ 42,027,000 | ||
Average cost (USD per share) | $ 38.80 | $ 32.81 | ||
Remaining authorized repurchase amount | $ 206,811,000 | |||
Stock Based Awards | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share (shares) | 1,299 |
DISPOSITIONS - Narrative (Detai
DISPOSITIONS - Narrative (Details) - Disposed of by Sale - USD ($) | Aug. 27, 2019 | Sep. 30, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2021 | Jun. 28, 2021 | Apr. 15, 2021 |
GG UniqueFIber | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Cash consideration | $ 336,000 | ||||||
Pre-tax gain (loss) on sale of assets | $ (3,753,000) | ||||||
Dream and WestSoy | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Cash consideration | $ 33,000,000 | ||||||
Pre-tax gain (loss) on sale of assets | 7,519,000 | ||||||
Final purchase price | 31,320,000 | ||||||
Fruit Business | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Cash consideration | $ 38,547,000 | ||||||
Pre-tax gain (loss) on sale of assets | (1,904,000) | ||||||
Pre-tax loss (gain) from reducing the carrying value to estimated fair value | $ 23,596,000 | $ 32,497,000 | |||||
Danival | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Pre-tax gain (loss) on sale of assets | $ 611,000 | ||||||
Tilda | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Proceeds from divestiture | $ 342,000,000 | ||||||
Assets related to disposition | 0 | $ 0 | |||||
Liabilities related to disposition | $ 0 | $ 0 |
DISPOSITIONS - Tilda Statements
DISPOSITIONS - Tilda Statements of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Net income from discontinued operations, net of tax | $ 0 | $ 11,266 |
Tilda | Disposed of by Sale | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Net sales | 0 | |
Cost of sales | 0 | |
Gross profit | 0 | |
Other expense | 75 | |
Net loss from discontinued operations before income taxes | (75) | |
Benefit for income taxes | (11,331) | |
Net income from discontinued operations, net of tax | $ 11,256 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Jun. 30, 2021 | |
Inventory Disclosure [Abstract] | |||
Finished goods | $ 180,604 | $ 187,884 | |
Raw materials, work-in-progress and packaging | 99,572 | 97,526 | |
Total inventories | 280,176 | $ 285,410 | |
Inventory write-down | $ 0 | $ 204 |
PROPERTY, PLANT AND EQUIPMENT_3
PROPERTY, PLANT AND EQUIPMENT, NET (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Jun. 30, 2021 | |
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | $ 544,293 | $ 543,291 | |
Less: accumulated depreciation and amortization | 231,867 | 230,514 | |
Property, plant and equipment, net | 312,426 | 312,777 | |
Depreciation | 7,408 | $ 9,703 | |
Discontinued Operations, Held-for-sale | United Kingdom | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment classified as held for sale | 1,874 | ||
Discontinued Operations, Held-for-sale | United States | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment classified as held for sale | 1,768 | ||
Land | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 13,252 | 13,666 | |
Buildings and improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 55,199 | 58,143 | |
Machinery and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 306,275 | 306,811 | |
Computer hardware and software | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 66,076 | 65,132 | |
Furniture and fixtures | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 23,874 | 23,546 | |
Leasehold improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 56,371 | 54,360 | |
Construction in progress | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | $ 23,246 | $ 21,633 |
LEASES - Lease Expense (Details
LEASES - Lease Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Leases [Abstract] | ||
Operating lease expenses | $ 3,752 | $ 3,956 |
Finance lease expenses | 70 | 185 |
Variable lease expenses | 403 | 866 |
Short-term lease expenses | 1,365 | 913 |
Total lease expenses | $ 5,590 | $ 5,920 |
LEASES - Other Information (Det
LEASES - Other Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows from operating leases | $ 3,745 | $ 4,359 |
Operating cash flows from finance leases | 5 | 3 |
Financing cash flows from finance leases | 60 | 85 |
ROU assets obtained in exchange for lease obligations: | ||
Operating leases | 319 | 7,766 |
Finance leases | $ 0 | $ 15 |
Weighted average remaining lease term: | ||
Operating leases | 9 years 7 months 6 days | 10 years 1 month 6 days |
Operating leases | 4 years 1 month 6 days | 2 years 1 month 6 days |
Weighted average discount rate: | ||
Operating leases | 3.30% | 3.00% |
Finance leases | 4.20% | 2.60% |
LEASES - Supplemental Balance S
LEASES - Supplemental Balance Sheet Information (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Jun. 30, 2021 |
Leases [Abstract] | ||
Operating lease ROU assets, net | $ 88,387 | $ 92,010 |
Finance lease ROU assets, net | 469 | 547 |
Total leased assets | 88,856 | 92,557 |
Current operating liabilities | 11,216 | 10,870 |
Current finance liabilities | 195 | 229 |
Non-current operating liabilities | 82,176 | 85,929 |
Non-current finance liabilities | 283 | 326 |
Total lease liabilities | $ 93,870 | $ 97,354 |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Property, Plant, and Equipment and Finance Lease Right-of-Use Asset, after Accumulated Depreciation and Amortization | Property, Plant, and Equipment and Finance Lease Right-of-Use Asset, after Accumulated Depreciation and Amortization |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Accrued expenses and other current liabilities | Accrued expenses and other current liabilities |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Current portion of long-term debt | Current portion of long-term debt |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Long-term debt, less current portion | Long-term debt, less current portion |
LEASES - Maturities of Lease Li
LEASES - Maturities of Lease Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Jun. 30, 2021 |
Operating leases | ||
2022 (remainder of year) | $ 10,094 | |
2023 | 14,499 | |
2024 | 12,712 | |
2025 | 11,313 | |
2026 | 10,741 | |
Thereafter | 52,096 | |
Total lease payments | 111,455 | |
Less: Imputed interest | 18,063 | |
Total lease liabilities | 93,392 | |
Finance leases | ||
2022 (remainder of year) | 163 | |
2023 | 133 | |
2024 | 51 | |
2025 | 51 | |
2026 | 51 | |
Thereafter | 76 | |
Total lease payments | 525 | |
Less: Imputed interest | 47 | |
Total lease liabilities | 478 | |
Total | ||
2022 (remainder of year) | 10,257 | |
2023 | 14,632 | |
2024 | 12,763 | |
2025 | 11,364 | |
2026 | 10,792 | |
Thereafter | 52,172 | |
Total lease payments | 111,980 | |
Less: Imputed interest | 18,110 | |
Total lease liabilities | $ 93,870 | $ 97,354 |
GOODWILL AND OTHER INTANGIBLE_3
GOODWILL AND OTHER INTANGIBLE ASSETS - Changes In Carrying Amount Of Goodwill (Details) $ in Thousands | 3 Months Ended |
Sep. 30, 2021USD ($) | |
Goodwill | |
Goodwill | $ 871,067 |
Translation and other adjustments, net | (7,719) |
Goodwill | 863,348 |
North America | |
Goodwill | |
Goodwill | 600,812 |
Translation and other adjustments, net | (777) |
Goodwill | 600,035 |
International | |
Goodwill | |
Goodwill | 270,255 |
Translation and other adjustments, net | (6,942) |
Goodwill | $ 263,313 |
GOODWILL AND OTHER INTANGIBLE_4
GOODWILL AND OTHER INTANGIBLE ASSETS - Components of Trademarks And Other Intangible Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Jun. 30, 2021 |
Indefinite-lived Intangible Assets [Line Items] | ||
Other intangibles | $ 143,884 | $ 146,856 |
Less: accumulated amortization | (105,380) | (105,432) |
Net carrying amount | 308,588 | 314,895 |
Trademarks and Tradenames | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Trademarks and tradenames | $ 270,084 | $ 273,471 |
GOODWILL AND OTHER INTANGIBLE_5
GOODWILL AND OTHER INTANGIBLE ASSETS - Narrative (Details) | 3 Months Ended |
Sep. 30, 2021 | |
Minimum | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful lives (in years) | 5 years |
Maximum | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful lives (in years) | 25 years |
GOODWILL AND OTHER INTANGIBLE_6
GOODWILL AND OTHER INTANGIBLE ASSETS - Amortization Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Amortization of acquired intangibles | $ 2,095 | $ 2,433 |
DEBT AND BORROWINGS - Component
DEBT AND BORROWINGS - Components of Debt (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Jun. 30, 2021 |
Line of Credit Facility [Line Items] | ||
Other borrowings | $ 780 | $ 1,022 |
Long-term debt | 345,749 | 231,022 |
Short-term borrowings and current portion of long-term debt | 335 | 530 |
Long-term debt, less current portion | 345,414 | 230,492 |
Amended Credit Agreement | Revolving credit facility | ||
Line of Credit Facility [Line Items] | ||
Revolving credit facility | $ 344,969 | $ 230,000 |
DEBT AND BORROWINGS - Credit Ag
DEBT AND BORROWINGS - Credit Agreement (Details) - Amended Credit Agreement | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Sep. 30, 2021USD ($) | Sep. 30, 2021USD ($) | Mar. 31, 2021 | Sep. 30, 2021USD ($) | Jun. 30, 2021USD ($) | Feb. 06, 2018USD ($) | |
Revolving credit facility | ||||||
Line of Credit Facility [Line Items] | ||||||
Revolving credit facility | $ 1,000,000,000 | |||||
Line of credit facility outstanding | $ 344,969,000 | $ 344,969,000 | $ 344,969,000 | $ 230,000,000 | ||
Letters of credit outstanding | 6,394,000 | $ 6,394,000 | $ 6,394,000 | |||
Term Loan | ||||||
Line of Credit Facility [Line Items] | ||||||
Revolving credit facility | 300,000,000 | |||||
Additional borrowing capacity | $ 400,000,000 | |||||
Consolidated leverage ratio | 3.75 | |||||
Interest coverage ratio | 4 | 3.75 | ||||
Available borrowing capacity | $ 648,637,000 | $ 648,637,000 | $ 648,637,000 | |||
Weighted average interest rate | 1.08% | 1.08% | 1.08% | |||
Term Loan | Minimum | ||||||
Line of Credit Facility [Line Items] | ||||||
Commitment fee percentage | 0.20% | |||||
Term Loan | Maximum | ||||||
Line of Credit Facility [Line Items] | ||||||
Commitment fee percentage | 0.45% | |||||
Term Loan | Eurocurrency Rate | Minimum | ||||||
Line of Credit Facility [Line Items] | ||||||
Basis spread on variable rate | 0.88% | |||||
Term Loan | Eurocurrency Rate | Maximum | ||||||
Line of Credit Facility [Line Items] | ||||||
Basis spread on variable rate | 2.50% | |||||
Term Loan | Base Rate | Minimum | ||||||
Line of Credit Facility [Line Items] | ||||||
Basis spread on variable rate | 0.00% | |||||
Term Loan | Base Rate | Maximum | ||||||
Line of Credit Facility [Line Items] | ||||||
Basis spread on variable rate | 1.50% |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | ||
Effective income tax rate reconciliation (as a percent) | 18.60% | 589.20% |
Tax expense from tax gain on sale | $ 0 | $ 11,331 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE LOSS (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Total other comprehensive (loss) income | $ (20,963) | $ 31,005 |
Foreign currency translation adjustments | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Other comprehensive (loss) income before reclassifications | (22,805) | 32,776 |
Amounts reclassified into income | 0 | 1,181 |
Deferred gains (losses) on cash flow hedging instruments | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Other comprehensive (loss) income before reclassifications | 535 | (883) |
Amounts reclassified into income | (500) | 923 |
Deferred gains (losses) on net investment hedging instruments | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Other comprehensive (loss) income before reclassifications | 1,910 | (2,890) |
Amounts reclassified into income | $ (103) | $ (102) |
STOCK-BASED COMPENSATION AND _3
STOCK-BASED COMPENSATION AND INCENTIVE PERFORMANCE PLANS - Compensation Cost and Related Income Tax Benefits Recognized (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Related income tax benefit | $ 273 | $ 807 |
Selling, general and administrative expense | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Stock-based compensation expense | $ 4,287 | $ 4,367 |
STOCK-BASED COMPENSATION AND _4
STOCK-BASED COMPENSATION AND INCENTIVE PERFORMANCE PLANS - Narrative (Details) - USD ($) $ in Thousands | Nov. 06, 2021 | Sep. 30, 2021 | Jun. 30, 2021 |
RSAs, RSUs, and PSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares available for grant (in shares) | 1,299,000 | 1,382,000 | |
Vested in period (shares) | 61,000 | ||
RSAs, RSUs, and PSUs | CEO | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares available for grant (in shares) | 350,000 | ||
Vested in period (shares) | 13 | ||
RSAs, RSUs, and PSUs | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percent of targeted award | 300.00% | ||
Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized stock-based compensation expense | $ 5,169 | ||
Period for recognition (in years) | 1 year 1 month 6 days | ||
Performance Shares | Subsequent Event [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percent of targeted award | 100.00% | ||
Vested in period (shares) | 1,299,000 |
STOCK-BASED COMPENSATION AND _5
STOCK-BASED COMPENSATION AND INCENTIVE PERFORMANCE PLANS - Non-Vested Restricted Stock and Restricted Share Unit Awards (Details) - RSAs, RSUs, and PSUs shares in Thousands | 3 Months Ended |
Sep. 30, 2021$ / sharesshares | |
Number of Shares and Units | |
Non-vested restricted stock, restricted share units, and performance units, beginning balance (shares) | shares | 1,780 |
Granted (shares) | shares | 12 |
Vested (shares) | shares | (61) |
Forfeited (shares) | shares | (103) |
Non-vested restricted stock, restricted share units, and performance units, ending balance (shares) | shares | 1,628 |
Weighted Average Grant Date Fair Value (per share) | |
Non-vested restricted stock, restricted share units, and performance units beginning balance (USD per share) | $ / shares | $ 16.55 |
Granted (USD per share) | $ / shares | 39.81 |
Vested (USD per share) | $ / shares | 21.78 |
Forfeited (USD per share) | $ / shares | 15.43 |
Non-vested restricted stock, restricted share units, and performance units ending balance (USD per share) | $ / shares | $ 16.53 |
STOCK-BASED COMPENSATION AND _6
STOCK-BASED COMPENSATION AND INCENTIVE PERFORMANCE PLANS - Restricted Stock Grant Information (Details) - RSAs, RSUs, and PSUs - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Fair value of RSAs, RSUs and PSUs granted | $ 478 | $ 4,398 |
Fair value of shares vested | 2,522 | 1,056 |
Tax benefit recognized from restricted shares vesting | $ 246 | $ 152 |
INVESTMENTS (Details)
INVESTMENTS (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Jun. 30, 2021 |
Chop't | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity method investments | $ 10,161 | $ 10,699 |
Yeo Hiap Seng Limited | ||
Schedule of Equity Method Investments [Line Items] | ||
Ownership percentage, less than | 1.00% | |
HHO, Hain Future, and Yeo Hiap Seng Limited | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity method investments | $ 6,557 | $ 6,218 |
FINANCIAL INSTRUMENTS MEASURE_3
FINANCIAL INSTRUMENTS MEASURED AT FAIR VALUE - Assets And Liabilities Measured At Fair Value On A Recurring Basis (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Jun. 30, 2021 |
Assets: | ||
Derivative financial instruments | $ 746 | $ 699 |
Equity investment | 590 | 646 |
Total | 1,336 | 1,345 |
Liabilities: | ||
Derivative financial instruments | 9,007 | 11,968 |
Total | 9,007 | 11,968 |
Quoted prices in active markets (Level 1) | ||
Assets: | ||
Derivative financial instruments | 0 | 0 |
Equity investment | 590 | 646 |
Total | 590 | 646 |
Liabilities: | ||
Derivative financial instruments | 0 | 0 |
Total | 0 | 0 |
Significant other observable inputs (Level 2) | ||
Assets: | ||
Derivative financial instruments | 746 | 699 |
Equity investment | 0 | 0 |
Total | 746 | 699 |
Liabilities: | ||
Derivative financial instruments | 9,007 | 11,968 |
Total | 9,007 | 11,968 |
Significant unobservable inputs (Level 3) | ||
Assets: | ||
Derivative financial instruments | 0 | 0 |
Equity investment | 0 | 0 |
Total | 0 | 0 |
Liabilities: | ||
Derivative financial instruments | 0 | 0 |
Total | $ 0 | $ 0 |
FINANCIAL INSTRUMENTS MEASURE_4
FINANCIAL INSTRUMENTS MEASURED AT FAIR VALUE - Narrative (Details) | Sep. 30, 2021 |
Yeo Hiap Seng Limited | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Ownership percentage, less than | 1.00% |
DERIVATIVES AND HEDGING ACTIV_3
DERIVATIVES AND HEDGING ACTIVITIES (Additional Details) (Details) € in Thousands, £ in Thousands | 9 Months Ended | |||
Jun. 30, 2022USD ($) | Sep. 30, 2021USD ($)instrument | Sep. 30, 2021EUR (€)instrument | Sep. 30, 2021GBP (£)instrument | |
Not Designated as Hedging Instrument | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Notional amount | $ 0 | |||
Interest Rate Swap | Forecast | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Other comprehensive income (loss), cash flow hedge, reclassification | $ (283,000) | |||
Interest Rate Swap | Cash Flow Hedging | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Number of instruments | instrument | 4 | 4 | 4 | |
Notional amount | $ 230,000,000 | |||
Cross-currency swap | Forecast | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Other comprehensive income (loss), cash flow hedge, reclassification | $ 127,000 | |||
Cross-currency swap | Cash Flow Hedging | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Number of instruments | instrument | 1 | 1 | 1 | |
Cross-currency swap | Cash Flow Hedging | Short | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Notional amount | € | € 24,700 | |||
Cross-currency swap | Cash Flow Hedging | Long | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Notional amount | $ 26,775,000 | |||
Cross-currency swap | Net Investment Hedging | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Number of instruments | instrument | 2 | 2 | 2 | |
Cross-currency swap | Net Investment Hedging | Short | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Notional amount | € | € 76,969 | |||
Cross-currency swap | Net Investment Hedging | Long | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Notional amount | $ 83,225,000 | |||
Foreign currency forward contract | Cash Flow Hedging | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Number of instruments | instrument | 6 | 6 | 6 | |
Foreign currency forward contract | Cash Flow Hedging | Short | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Notional amount | £ | £ 5,142 | |||
Foreign currency forward contract | Cash Flow Hedging | Long | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Notional amount | € | € 6,000 |
DERIVATIVES AND HEDGING ACTIV_4
DERIVATIVES AND HEDGING ACTIVITIES (Balance Sheet Location) (Details) - Designated as Hedging Instrument - USD ($) $ in Thousands | Sep. 30, 2021 | Jun. 30, 2021 |
Derivatives, Fair Value [Line Items] | ||
Derivative asset, fair value | $ 746 | $ 699 |
Derivative liability, fair value | 9,007 | 11,968 |
Prepaid expenses and other current assets | Interest Rate Swap | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset, fair value | 49 | 43 |
Prepaid expenses and other current assets | Cross-currency swap | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset, fair value | 697 | 656 |
Accrued expenses and other current liabilities / Other noncurrent liabilities | Interest Rate Swap | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability, fair value | 330 | 312 |
Other noncurrent liabilities | Cross-currency swap | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability, fair value | $ 8,677 | $ 11,656 |
DERIVATIVES AND HEDGING ACTIV_5
DERIVATIVES AND HEDGING ACTIVITIES (Cash Flow Hedges and Accumulated Other Comprehensive Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Amount of Gain (Loss) Recognized in AOCL on Derivatives | $ 678 | $ (1,118) |
Interest and other financing expense, net / Other expense (income), net | 788 | 1,373 |
Cost of sales | 349,485 | 379,463 |
Reclassification out of Accumulated Other Comprehensive Income | Accumulated Net Gain (Loss) from Cash Flow Hedges Including Portion Attributable to Noncontrolling Interest | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Amount of Gain (Loss) Reclassified from AOCL into Income | 634 | (1,168) |
Interest Rate Swap | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Amount of Gain (Loss) Recognized in AOCL on Derivatives | (117) | 61 |
Interest Rate Swap | Reclassification out of Accumulated Other Comprehensive Income | Accumulated Net Gain (Loss) from Cash Flow Hedges Including Portion Attributable to Noncontrolling Interest | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Interest and other financing expense, net | (104) | (58) |
Cross-currency swap | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Amount of Gain (Loss) Recognized in AOCL on Derivatives | 776 | (1,177) |
Cross-currency swap | Reclassification out of Accumulated Other Comprehensive Income | Accumulated Net Gain (Loss) from Cash Flow Hedges Including Portion Attributable to Noncontrolling Interest | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Interest and other financing expense, net / Other expense (income), net | 738 | (1,183) |
Foreign currency forward contract | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Amount of Gain (Loss) Recognized in AOCL on Derivatives | 19 | (2) |
Foreign currency forward contract | Reclassification out of Accumulated Other Comprehensive Income | Accumulated Net Gain (Loss) from Cash Flow Hedges Including Portion Attributable to Noncontrolling Interest | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Cost of sales | $ 0 | $ 73 |
DERIVATIVES AND HEDGING ACTIV_6
DERIVATIVES AND HEDGING ACTIVITIES (Pre-Tax Effect of Derivative Financial Instruments) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Amount of Gain (Loss) Reclassified from AOCL into Income | $ 24,479 | $ 2,200 |
Interest Rate Swap | Cost of sales | Reclassification out of Accumulated Other Comprehensive Income | Accumulated Gain (Loss), Cash Flow Hedge, Including Noncontrolling Interest | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Amount of Gain (Loss) Reclassified from AOCL into Income | 0 | 0 |
Interest Rate Swap | Interest and other financing expense, net | Reclassification out of Accumulated Other Comprehensive Income | Accumulated Gain (Loss), Cash Flow Hedge, Including Noncontrolling Interest | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Amount of Gain (Loss) Reclassified from AOCL into Income | (104) | (58) |
Interest Rate Swap | Other expense (income), net | Reclassification out of Accumulated Other Comprehensive Income | Accumulated Gain (Loss), Cash Flow Hedge, Including Noncontrolling Interest | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Amount of Gain (Loss) Reclassified from AOCL into Income | 0 | 0 |
Cross-currency swap | Interest and other financing expense, net | Reclassification out of Accumulated Other Comprehensive Income | Accumulated Gain (Loss), Cash Flow Hedge, Including Noncontrolling Interest | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Amount of Gain (Loss) Reclassified from AOCL into Income | 41 | 41 |
Cross-currency swap | Other expense (income), net | Reclassification out of Accumulated Other Comprehensive Income | Accumulated Gain (Loss), Cash Flow Hedge, Including Noncontrolling Interest | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Amount of Gain (Loss) Reclassified from AOCL into Income | $ 697 | (1,224) |
Foreign currency forward contract | Cost of sales | Reclassification out of Accumulated Other Comprehensive Income | Accumulated Gain (Loss), Cash Flow Hedge, Including Noncontrolling Interest | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Amount of Gain (Loss) Reclassified from AOCL into Income | $ 73 |
DERIVATIVES AND HEDGING ACTIV_7
DERIVATIVES AND HEDGING ACTIVITIES (Net Investment Hedges and Accumulated Other Comprehensive Loss) (Details) - Cross-currency swap - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Amount of Gain (Loss) Recognized in AOCL on Derivatives | $ 2,417 | $ (3,658) |
Net Investment Hedging | Interest and other financing expense, net | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Amount of Gain (Loss) Recognized in Income on Derivatives | $ 130 | $ 129 |
DERIVATIVES AND HEDGING ACTIV_8
DERIVATIVES AND HEDGING ACTIVITIES (Not Designated as Hedging Instruments and Consolidated Statement of Operations) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Foreign currency forward contract | Not Designated as Hedging Instrument | Other expense (income), net | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Amount of Gain (Loss) Recognized in Income on Derivatives | $ 0 | $ 124 |
TERMINATION BENEFITS RELATED _3
TERMINATION BENEFITS RELATED TO PRODUCTIVITY AND TRANSFORMATION INITIATIVES (Details) - Termination benefits and personnel realignment - Productivity and Transformation Costs Initiative $ in Thousands | 3 Months Ended |
Sep. 30, 2021USD ($) | |
Restructuring Reserve [Roll Forward] | |
Restructuring reserve, beginning balance | $ 4,448 |
Charges | 285 |
Amounts Paid | (2,539) |
Foreign Currency Translation & Other Adjustments | (12) |
Restructuring reserve, ending balance | $ 2,182 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) | Apr. 26, 2017complaint | Aug. 17, 2016complaint | Sep. 30, 2021lawsuit |
Securities Complaints | |||
Loss Contingencies [Line Items] | |||
Number of complaints | complaint | 3 | ||
Barnes Complaint | |||
Loss Contingencies [Line Items] | |||
Number of complaints | complaint | 2 | ||
Baby Food Litigation | |||
Loss Contingencies [Line Items] | |||
Number of active lawsuits | 29 | ||
Baby Food Litigation, Personal Injury | Pending Litigation | |||
Loss Contingencies [Line Items] | |||
Number of complaints alleging injury | 4 | ||
Number of complaints seeking relief | 2 |
SEGMENT INFORMATION - Segment D
SEGMENT INFORMATION - Segment Data (Details) $ in Thousands | 3 Months Ended | |
Sep. 30, 2021USD ($)segment | Sep. 30, 2020USD ($) | |
Segment Reporting Information [Line Items] | ||
Number of reportable segments | segment | 2 | |
Number of operating segments | segment | 3 | |
Net sales | $ 454,903 | $ 498,627 |
Operating Income | 25,547 | 3,280 |
Productivity and transformation costs | 3,983 | 1,433 |
Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Net sales | 454,903 | 498,627 |
Operating Income | 40,911 | 17,367 |
Operating Segments | North America | ||
Segment Reporting Information [Line Items] | ||
Net sales | 265,525 | 280,668 |
Operating Income | 16,842 | 33,256 |
Operating Segments | International | ||
Segment Reporting Information [Line Items] | ||
Net sales | 189,378 | 217,959 |
Operating Income | 24,069 | (15,889) |
Corporate and Other | ||
Segment Reporting Information [Line Items] | ||
Operating Income | (15,364) | (14,087) |
Productivity and transformation costs | $ 2,057 | $ 803 |
SEGMENT INFORMATION - Net Sales
SEGMENT INFORMATION - Net Sales (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net sales | $ 454,903 | $ 498,627 |
United States | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net sales | 233,487 | 239,717 |
United Kingdom | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net sales | 123,748 | 157,169 |
All Other | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net sales | 97,668 | 101,741 |
Grocery | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net sales | 301,553 | 343,749 |
Snacks | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net sales | 85,892 | 81,159 |
Personal Care | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net sales | 40,366 | 48,982 |
Tea | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net sales | $ 27,092 | $ 24,737 |
SEGMENT INFORMATION - Long-live
SEGMENT INFORMATION - Long-lived Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Jun. 30, 2021 |
Segment Reporting Information [Line Items] | ||
Long-lived assets | $ 400,813 | $ 404,787 |
United States | ||
Segment Reporting Information [Line Items] | ||
Long-lived assets | 146,858 | 148,950 |
United Kingdom | ||
Segment Reporting Information [Line Items] | ||
Long-lived assets | 144,200 | 142,973 |
All Other | ||
Segment Reporting Information [Line Items] | ||
Long-lived assets | $ 109,755 | $ 112,864 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) - SunOpta - USD ($) $ in Thousands | Apr. 15, 2021 | Sep. 30, 2021 | Sep. 30, 2020 |
Related Party Transaction [Line Items] | |||
Expenses from transactions with related party | $ 220 | $ 4,810 | |
Dream and WestSoy | |||
Related Party Transaction [Line Items] | |||
Proceeds from divestiture | $ 31,320 |
Uncategorized Items - hain-2021
Label | Element | Value |
Accounting Standards Update [Extensible Enumeration] | us-gaap_AccountingStandardsUpdateExtensibleList | Accounting Standards Update 2016-02 [Member] |