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Discontinued Operations | 6 Months Ended
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Dec. 31, 2018
Discontinued Operations and Disposal Groups [Abstract] |
Discontinued Operations | DISCONTINUED OPERATIONS In March 2018, the Company’s Board of Directors approved a plan to sell all of the operations of the Hain Pure Protein Corporation (“HPPC”) and EK Holdings, Inc. (“Empire”) operating segments, which are reported in the aggregate as the Hain Pure Protein reportable segment. Collectively, these planned dispositions represent a strategic shift that will have a major impact on the Company’s operations and financial results and have been accounted for as discontinued operations. The Company is actively marketing the sale of Hain Pure Protein, and a sale is anticipated to occur within twelve months of the Board of Directors’ approval, which occurred in March 2018. The Company is presenting the operating results and cash flows of Hain Pure Protein within discontinued operations in the current and prior periods. The assets and liabilities of Hain Pure Protein are presented as assets and liabilities of discontinued operations in the Consolidated Balance Sheets for all periods presented. The following table presents the major classes of Hain Pure Protein’s line items constituting the “Net (loss) income from discontinued operations, net of tax” in our Consolidated Statements of Operations:
| Three Months Ended December 31, |  | Six Months Ended December 31,
| 2018 |  | 2017 |  | 2018 |  | 2017
Net sales | $ | 147,181 |  |  | $ | 158,972 |  |  | $ | 260,720 |  |  | $ | 278,029 |
Cost of sales | 144,682 |  |  | 148,651 |  |  | 267,796 |  |  | 259,493 |
Gross profit (loss) | 2,499 |  |  | 10,321 |  |  | (7,076 | ) |  | 18,536 |
Selling, general and administrative expense | 4,750 |  |  | 3,928 |  |  | 8,992 |  |  | 8,568 |
Asset impairments | 54,946 |  |  | — |  |  | 57,904 |  |  | — |
Other expense | 2,478 |  |  | 1,099 |  |  | 5,195 |  |  | 2,455 |
Net (loss) income from discontinued operations before income taxes | (59,675 | ) |  | 5,294 |  |  | (79,167 | ) |  | 7,513 |
(Benefit) provision for income taxes | (22,452 | ) |  | 1,321 |  |  | (27,620 | ) |  | 2,307 |
Net (loss) income from discontinued operations, net of tax | $ | (37,223 | ) |  | $ | 3,973 |  |  | $ | (51,547 | ) |  | $ | 5,206 |
Assets and liabilities of discontinued operations presented in the Consolidated Balance Sheets as of December 31, 2018 and June 30, 2018 are included in the following table:
| December 31, |  | June 30,
Assets | 2018 |  | 2018
Cash and cash equivalents | $ | 5,581 |  |  | $ | 6,461 |
Accounts receivable, less allowance for doubtful accounts | 20,966 |  |  | 21,616 |
Inventories | 82,841 |  |  | 105,359 |
Prepaid expenses and other current assets | 6,229 |  |  | 5,604 |
Property, plant and equipment, net | 86,801 |  |  | 83,776 |
Goodwill | 41,089 |  |  | 41,089 |
Trademarks and other intangible assets, net | 51,029 |  |  | 51,029 |
Other assets | 4,649 |  |  | 4,381 |
Deferred tax assets (3) | 16,510 |  |  | — |
Impairments of long-lived assets held for sale(2) | (136,368 | ) |  | (78,464 | )
Current assets of discontinued operations(1) | $ | 179,327 |  |  | $ | 240,851 |
Liabilities |  |  |
Accounts payable | $ | 23,873 |  |  | $ | 31,762 |
Accrued expenses and other current liabilities | 10,355 |  |  | 6,880 |
Deferred tax liabilities (3) | — |  |  | 11,111 |
Other noncurrent liabilities | 78 |  |  | 93 |
Current liabilities of discontinued operations(1) | $ | 34,306 |  |  | $ | 49,846 |
(1) The assets and liabilities of Hain Pure Protein are classified as current on the December 31, 2018 and June 30, 2018 Consolidated Balance Sheets because it is probable that the sale will occur within twelve months of the Board of Directors’ approval. (2) In the three months ended June 30, 2018, results for HPPC (which comprises the Plainville Farms and FreeBird brands) were below our projections. The fourth quarter results, as well as negative market conditions in the sector, required the Company to reduce the internal projections for the business, which resulted in the Company lowering the projected long-term growth rate and profitability levels for HPPC. Accordingly, the updated projections indicated that the fair value of the HPPC business was below carrying value. As a result, in the three months ended June 30, 2018, the Company recorded a reserve of $78,464 to adjust the carrying value of Hain Pure Protein to its fair value, less its cost to sell primarily related to the Plainville Farms business. In the first quarter of the current fiscal year, the Company increased the reserve to adjust the carrying value of Hain Pure Protein by an additional $2,958. In the three months ended December 31, 2018, the Company recorded an additional reserve of $54,946, primarily related to the Plainville Farms business, as well as unfavorable market conditions that continued to negatively impact the Hain Pure Protein reportable segment. (3) The change in deferred taxes from June 30, 2018 to December 31, 2018 was the result of the reversal of the $12,250 million deferred tax liability previously recorded related to Hain Pure Protein being classified as held for sale. In addition, deferred taxes were impacted by the tax effect of current period book losses as well as the deferred tax benefit arising from asset impairment charges.

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- Definition The entire disclosure related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 360 -URI http://asc.fasb.org/topic&trid=2155823 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=2122178 + Details
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