2017 Q2 Form 10-Q Financial Statement

#000091040617000034 Filed on June 22, 2017

View on sec.gov

Income Statement

Concept 2017 Q2 2017 Q1 2016 Q1
Revenue $602.9M $588.8M $749.9M
YoY Change -18.26% -21.48% 13.15%
Cost Of Revenue $459.0M $449.6M $576.8M
YoY Change 219.64% -22.05% 14.72%
Gross Profit $143.9M $139.2M $159.9M
YoY Change -4.14% -12.95% 6.88%
Gross Profit Margin 23.86% 23.64% 21.32%
Selling, General & Admin $74.90M $76.17M $78.89M
YoY Change 15.94% -3.45% 8.8%
% of Gross Profit 52.06% 54.72% 49.33%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $14.90M $8.376M $9.352M
YoY Change 40.57% -10.44% 19.97%
% of Gross Profit 10.36% 6.02% 5.85%
Operating Expenses $79.00M $76.17M $78.89M
YoY Change 15.67% -3.45% 8.8%
Operating Profit $7.174M $49.62M $71.15M
YoY Change -111.01% -30.26% 4.39%
Interest Expense -$5.600M -$5.400M -$6.900M
YoY Change 5.66% -21.74% -19.77%
% of Operating Profit -78.06% -10.88% -9.7%
Other Income/Expense, Net -$200.0K -$2.072M -$378.0K
YoY Change -97.37% 448.15% -90.27%
Pretax Income $1.366M $42.15M $72.86M
YoY Change -101.76% -42.15% 22.43%
Income Tax $3.000M $9.149M $23.91M
% Of Pretax Income 219.62% 21.71% 32.82%
Net Earnings $313.0K $31.33M $48.79M
YoY Change -100.35% -35.79% 28.39%
Net Earnings / Revenue 0.05% 5.32% 6.51%
Basic Earnings Per Share $0.00 $0.30 $0.47
Diluted Earnings Per Share $0.00 $0.30 $0.47
COMMON SHARES
Basic Shares Outstanding 103.7M shares 103.7M shares 103.3M shares
Diluted Shares Outstanding 104.2M shares 104.1M shares

Balance Sheet

Concept 2017 Q2 2017 Q1 2016 Q1
SHORT-TERM ASSETS
Cash & Short-Term Investments $137.1M $162.6M $125.4M
YoY Change 7.19% 29.67% 25.02%
Cash & Equivalents $137.1M $152.8M $125.4M
Short-Term Investments
Other Short-Term Assets $170.0M $65.00M $64.90M
YoY Change 100.47% 0.15% -11.22%
Inventory $342.0M $435.7M $395.0M
Prepaid Expenses $46.18M $65.02M $43.47M
Receivables $225.8M $241.7M $361.0M
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $874.8M $905.0M $946.2M
YoY Change -2.83% -4.35% 7.41%
LONG-TERM ASSETS
Property, Plant & Equipment $291.9M $377.2M $392.7M
YoY Change -25.13% -3.95% 20.48%
Goodwill $1.019B $1.033B $1.195B
YoY Change -0.03% -13.61% 7.94%
Intangibles $521.2M $567.4M $643.9M
YoY Change -13.82% -11.88% 1.91%
Long-Term Investments $19.00M $19.00M $20.00M
YoY Change -5.94% -5.0% 488.24%
Other Assets $30.24M $32.36M $32.97M
YoY Change -7.36% -1.84% 4.04%
Total Long-Term Assets $2.056B $2.029B $2.285B
YoY Change -2.44% -11.22% 8.79%
TOTAL ASSETS
Total Short-Term Assets $874.8M $905.0M $946.2M
Total Long-Term Assets $2.056B $2.029B $2.285B
Total Assets $2.931B $2.934B $3.231B
YoY Change -2.56% -9.21% 8.38%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $186.2M $237.2M $233.6M
YoY Change -26.03% 1.52% 3.15%
Accrued Expenses $106.7M $101.0M $93.05M
YoY Change 35.44% 8.57% 13.04%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due $9.626M $8.457M $37.81M
YoY Change -63.69% -77.63% 11.62%
Total Short-Term Liabilities $340.5M $346.7M $364.5M
YoY Change -4.63% -4.89% 6.37%
LONG-TERM LIABILITIES
Long-Term Debt $740.1M $780.9M $879.6M
YoY Change -11.49% -11.23% 4.09%
Other Long-Term Liabilities $15.98M $16.57M $5.986M
YoY Change -15.3% 176.75% 2.61%
Total Long-Term Liabilities $756.1M $797.4M $885.6M
YoY Change -11.57% -9.96% 4.08%
TOTAL LIABILITIES
Total Short-Term Liabilities $340.5M $346.7M $364.5M
Total Long-Term Liabilities $756.1M $797.4M $885.6M
Total Liabilities $1.218B $1.268B $1.392B
YoY Change -9.33% -8.92% 2.88%
SHAREHOLDERS EQUITY
Retained Earnings $868.8M $868.5M $934.7M
YoY Change 8.41% -7.09% 28.67%
Common Stock $1.080M $1.080M $1.075M
YoY Change 0.47% 0.47% 1.61%
Preferred Stock
YoY Change
Treasury Stock (at cost) $99.32M $98.98M $88.67M
YoY Change 11.53% 11.63% 52.69%
Treasury Stock Shares 4.287M shares 4.279M shares 4.010M shares
Shareholders Equity $1.713B $1.666B $1.839B
YoY Change
Total Liabilities & Shareholders Equity $2.931B $2.934B $3.231B
YoY Change -2.56% -9.21% 8.38%

Cashflow Statement

Concept 2017 Q2 2017 Q1 2016 Q1
OPERATING ACTIVITIES
Net Income $313.0K $31.33M $48.79M
YoY Change -100.35% -35.79% 28.39%
Depreciation, Depletion And Amortization $14.90M $8.376M $9.352M
YoY Change 40.57% -10.44% 19.97%
Cash From Operating Activities $68.60M $35.20M $32.30M
YoY Change -20.23% 8.98% 103.14%
INVESTING ACTIVITIES
Capital Expenditures -$16.60M -$2.000M -$16.80M
YoY Change -264.36% -88.1% 60.0%
Acquisitions
YoY Change
Other Investing Activities -$21.90M -$13.40M $0.00
YoY Change -25.26% -100.0%
Cash From Investing Activities -$38.60M -$15.30M -$16.90M
YoY Change 101.04% -9.47% -82.54%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -47.40M -15.50M -66.70M
YoY Change -19.39% -76.76% -236.12%
NET CHANGE
Cash From Operating Activities 68.60M 35.20M 32.30M
Cash From Investing Activities -38.60M -15.30M -16.90M
Cash From Financing Activities -47.40M -15.50M -66.70M
Net Change In Cash -17.40M 4.400M -51.30M
YoY Change -317.5% -108.58% 60.82%
FREE CASH FLOW
Cash From Operating Activities $68.60M $35.20M $32.30M
Capital Expenditures -$16.60M -$2.000M -$16.80M
Free Cash Flow $85.20M $37.20M $49.10M
YoY Change 12.25% -24.24% 85.98%

Facts In Submission

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us-gaap Employee Service Share Based Compensation Tax Benefit From Compensation Expense
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2820000 USD
us-gaap Employee Service Share Based Compensation Tax Benefit Realized From Exercise Of Stock Options
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us-gaap Employee Service Share Based Compensation Tax Benefit Realized From Exercise Of Stock Options
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2538000 USD
us-gaap Excess Tax Benefit From Share Based Compensation Financing Activities
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11308000 USD
us-gaap Excess Tax Benefit From Share Based Compensation Financing Activities
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3338000 USD
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us-gaap Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Liability Settlements
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3553000 USD
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1584000 USD
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31000 USD
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us-gaap Gain On Business Interruption Insurance Recovery
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9013000 USD
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0 USD
us-gaap Gain On Business Interruption Insurance Recovery
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0 USD
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126577000 USD
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126577000 USD
us-gaap Goodwill Transfers
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0 USD
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us-gaap Gross Profit
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464050000 USD
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143393000 USD
us-gaap Gross Profit
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0 USD
us-gaap Impairment Of Intangible Assets Excluding Goodwill
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72863000 USD
us-gaap Payments Related To Tax Withholding For Share Based Compensation
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us-gaap Payments To Acquire Businesses Net Of Cash Acquired
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0 USD
us-gaap Income Loss From Continuing Operations Before Income Taxes Minority Interest And Income Loss From Equity Method Investments
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195980000 USD
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us-gaap Income Loss From Equity Method Investments
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CY2017Q1 us-gaap Income Loss From Continuing Operations Before Income Taxes Minority Interest And Income Loss From Equity Method Investments
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39556000 USD
us-gaap Income Loss From Continuing Operations Before Income Taxes Minority Interest And Income Loss From Equity Method Investments
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86394000 USD
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us-gaap Income Tax Expense Benefit
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59846000 USD
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8051000 USD
us-gaap Income Tax Expense Benefit
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19322000 USD
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us-gaap Increase Decrease In Accounts Payable And Accrued Liabilities
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19885000 USD
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30461000 USD
us-gaap Increase Decrease In Accounts Receivable
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35194000 USD
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1801000 USD
us-gaap Increase Decrease In Prepaid Deferred Expense And Other Assets
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us-gaap Increase Decrease In Prepaid Deferred Expense And Other Assets
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us-gaap Incremental Common Shares Attributable To Share Based Payment Arrangements
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us-gaap Incremental Common Shares Attributable To Share Based Payment Arrangements
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648000 shares
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426372000 USD
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276581000 USD
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435651000 USD
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170380000 USD
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159070000 USD
CY2016Q2 us-gaap Investments In Affiliates Subsidiaries Associates And Joint Ventures
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20244000 USD
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18976000 USD
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1268060000 USD
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2933583000 USD
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3553000 USD
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1584000 USD
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2019-12-12
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P06M
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us-gaap Net Cash Provided By Used In Financing Activities
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us-gaap Net Cash Provided By Used In Investing Activities
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us-gaap Net Cash Provided By Used In Investing Activities
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131854000 USD
us-gaap Net Cash Provided By Used In Operating Activities
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147952000 USD
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31328000 USD
us-gaap Net Income Loss
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80 country
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71148000 USD
us-gaap Operating Income Loss
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14630000 USD
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us-gaap Other Comprehensive Income Loss Foreign Currency Transaction And Translation Adjustment Net Of Tax
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14630000 USD
us-gaap Other Comprehensive Income Loss Foreign Currency Transaction And Translation Adjustment Net Of Tax
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OtherComprehensiveIncomeLossForeignCurrencyTranslationAdjustmentTax
0 USD
us-gaap Other Comprehensive Income Loss Foreign Currency Translation Adjustment Tax
OtherComprehensiveIncomeLossForeignCurrencyTranslationAdjustmentTax
0 USD
CY2017Q1 us-gaap Other Comprehensive Income Loss Foreign Currency Translation Adjustment Tax
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0 USD
us-gaap Other Comprehensive Income Loss Foreign Currency Translation Adjustment Tax
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us-gaap Other Comprehensive Income Loss Tax
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us-gaap Other Comprehensive Income Unrealized Gain Loss On Derivatives Arising During Period Before Tax
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us-gaap Other Comprehensive Income Unrealized Gain Loss On Derivatives Arising During Period Tax
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us-gaap Other Comprehensive Income Unrealized Gain Loss On Derivatives Arising During Period Tax
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33000 USD
us-gaap Other Comprehensive Income Unrealized Holding Gain Loss On Securities Arising During Period Before Tax
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83000 USD
us-gaap Other Comprehensive Income Unrealized Holding Gain Loss On Securities Arising During Period Before Tax
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20000 USD
us-gaap Other Comprehensive Income Unrealized Holding Gain Loss On Securities Arising During Period Net Of Tax
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50000 USD
us-gaap Other Comprehensive Income Unrealized Holding Gain Loss On Securities Arising During Period Net Of Tax
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13000 USD
us-gaap Other Comprehensive Income Unrealized Holding Gain Loss On Securities Arising During Period Tax
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33000 USD
us-gaap Other Comprehensive Income Unrealized Holding Gain Loss On Securities Arising During Period Tax
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3000 USD
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us-gaap Other Labor Related Expenses
OtherLaborRelatedExpenses
4290000 USD
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1127000 USD
us-gaap Other Labor Related Expenses
OtherLaborRelatedExpenses
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16566000 USD
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us-gaap Other Noncash Income
OtherNoncashIncome
0 USD
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OtherNoncashIncomeExpense
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us-gaap Other Noncash Income Expense
OtherNoncashIncomeExpense
363000 USD
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OtherNonoperatingIncomeExpense
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us-gaap Other Nonoperating Income Expense
OtherNonoperatingIncomeExpense
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OtherNonoperatingIncomeExpense
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us-gaap Other Nonoperating Income Expense
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us-gaap Payments For Proceeds From Other Investing Activities
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0 USD
us-gaap Payments For Proceeds From Other Investing Activities
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us-gaap Payments To Acquire Businesses Net Of Cash Acquired
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us-gaap Payments Related To Tax Withholding For Share Based Compensation
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25158000 USD
us-gaap Payments To Acquire Other Property Plant And Equipment
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58022000 USD
us-gaap Payments To Acquire Other Property Plant And Equipment
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44064000 USD
CY2016Q2 us-gaap Preferred Stock Par Or Stated Value Per Share
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PreferredStockParOrStatedValuePerShare
0.01
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PreferredStockSharesAuthorized
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PreferredStockSharesAuthorized
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CY2016Q2 us-gaap Preferred Stock Shares Issued
PreferredStockSharesIssued
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PreferredStockSharesIssued
0 shares
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PreferredStockSharesOutstanding
0 shares
CY2017Q1 us-gaap Preferred Stock Shares Outstanding
PreferredStockSharesOutstanding
0 shares
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PreferredStockValue
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PreferredStockValue
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PrepaidExpenseCurrent
65017000 USD
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173904000 USD
us-gaap Proceeds From Long Term Lines Of Credit
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22000000 USD
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us-gaap Proceeds From Repayments Of Other Long Term Debt
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CY2016Q1 us-gaap Professional Fees
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0 USD
us-gaap Professional Fees
ProfessionalFees
0 USD
CY2017Q1 us-gaap Professional Fees
ProfessionalFees
7124000 USD
us-gaap Professional Fees
ProfessionalFees
20089000 USD
us-gaap Profit Loss
ProfitLoss
136026000 USD
us-gaap Profit Loss
ProfitLoss
67117000 USD
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602233000 USD
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610982000 USD
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389841000 USD
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377190000 USD
us-gaap Repayments Of Long Term Debt
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2378000 USD
us-gaap Repayments Of Long Term Debt
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18145000 USD
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801392000 USD
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RetainedEarningsAccumulatedDeficit
868509000 USD
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736663000 USD
us-gaap Sales Revenue Net
SalesRevenueNet
2147827000 USD
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SalesRevenueNet
706563000 USD
us-gaap Sales Revenue Net
SalesRevenueNet
2128026000 USD
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78890000 USD
us-gaap Selling General And Administrative Expense
SellingGeneralAndAdministrativeExpense
223421000 USD
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SellingGeneralAndAdministrativeExpense
82576000 USD
us-gaap Selling General And Administrative Expense
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252730000 USD
us-gaap Share Based Compensation
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10005000 USD
us-gaap Share Based Compensation
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7519000 USD
us-gaap Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Forfeited In Period
ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsForfeitedInPeriod
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ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsForfeituresWeightedAverageGrantDateFairValue
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us-gaap Nature Of Operations
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<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">BUSINESS</font></div><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The Hain Celestial Group, Inc., a Delaware corporation, and its subsidiaries (collectively, &#8220;Hain Celestial&#8221; or the &#8220;Company,&#8221; and herein referred to as &#8220;we,&#8221; &#8220;us,&#8221; and &#8220;our&#8221;) was founded in 1993 and is headquartered in Lake Success, New York. The Company&#8217;s mission has continued to evolve since its founding, with health and wellness being the core tenet &#8212; to be the leading marketer, manufacturer and seller of organic and natural, &#8220;better-for-you&#8221; 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.&#160; 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 </font><font style="font-family:inherit;font-size:10pt;">80</font><font style="font-family:inherit;font-size:10pt;"> countries worldwide. </font></div><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">With a proven track record of strategic growth and profitability, the Company manufactures, markets, distributes and sells organic and natural products under brand names that are sold as &#8220;better-for-you&#8221; products, providing consumers with the opportunity to lead A Healthier Way of Life</font><font style="font-family:inherit;font-size:10pt;"><sup style="vertical-align:top;line-height:120%;font-size:7pt">TM</sup></font><font style="font-family:inherit;font-size:10pt;">.&#160; Hain Celestial is a leader in many organic and natural products categories, with many recognized brands in the various market categories it serves, including Almond Dream</font><font style="font-family:inherit;font-size:10pt;"><sup style="vertical-align:top;line-height:120%;font-size:7pt">&#174;</sup></font><font style="font-family:inherit;font-size:10pt;">, Arrowhead Mills</font><font style="font-family:inherit;font-size:10pt;"><sup style="vertical-align:top;line-height:120%;font-size:7pt">&#174;</sup></font><font style="font-family:inherit;font-size:10pt;">, Bearitos</font><font style="font-family:inherit;font-size:10pt;"><sup 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style="font-family:inherit;font-size:10pt;"><sup style="vertical-align:top;line-height:120%;font-size:7pt">&#174;</sup></font><font style="font-family:inherit;font-size:10pt;">, DeBoles</font><font style="font-family:inherit;font-size:10pt;"><sup style="vertical-align:top;line-height:120%;font-size:7pt">&#174;</sup></font><font style="font-family:inherit;font-size:10pt;">, Earth&#8217;s Best</font><font style="font-family:inherit;font-size:10pt;"><sup style="vertical-align:top;line-height:120%;font-size:7pt">&#174;</sup></font><font style="font-family:inherit;font-size:10pt;">, Ella&#8217;s Kitchen</font><font style="font-family:inherit;font-size:10pt;"><sup style="vertical-align:top;line-height:120%;font-size:7pt">&#174;</sup></font><font style="font-family:inherit;font-size:10pt;">, Empire</font><font style="font-family:inherit;font-size:10pt;"><sup style="vertical-align:top;line-height:120%;font-size:7pt">&#174;</sup></font><font style="font-family:inherit;font-size:10pt;">, Europe&#8217;s Best</font><font style="font-family:inherit;font-size:10pt;"><sup style="vertical-align:top;line-height:120%;font-size:7pt">&#174;</sup></font><font style="font-family:inherit;font-size:10pt;">, Farmhouse Fare</font><font style="font-family:inherit;font-size:10pt;"><sup style="vertical-align:top;line-height:120%;font-size:7pt">&#174;</sup></font><font style="font-family:inherit;font-size:10pt;">, Frank Cooper&#8217;s</font><font style="font-family:inherit;font-size:10pt;"><sup style="vertical-align:top;line-height:120%;font-size:7pt">&#174;</sup></font><font style="font-family:inherit;font-size:10pt;">, FreeBird</font><font style="font-family:inherit;font-size:10pt;"><sup style="vertical-align:top;line-height:120%;font-size:7pt">&#174;</sup></font><font style="font-family:inherit;font-size:10pt;">, Gale&#8217;s</font><font style="font-family:inherit;font-size:10pt;"><sup style="vertical-align:top;line-height:120%;font-size:7pt">&#174;</sup></font><font 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style="vertical-align:top;line-height:120%;font-size:7pt">&#174;</sup></font><font style="font-family:inherit;font-size:10pt;">, Imagine</font><font style="font-family:inherit;font-size:10pt;"><sup style="vertical-align:top;line-height:120%;font-size:7pt">&#174;</sup></font><font style="font-family:inherit;font-size:10pt;">, Johnson&#8217;s Juice Co.</font><font style="font-family:inherit;font-size:10pt;"><sup style="vertical-align:top;line-height:120%;font-size:7pt">&#174;</sup></font><font style="font-family:inherit;font-size:10pt;">, Joya</font><font style="font-family:inherit;font-size:10pt;"><sup style="vertical-align:top;line-height:120%;font-size:7pt">&#174;</sup></font><font style="font-family:inherit;font-size:10pt;">, Kosher Valley</font><font style="font-family:inherit;font-size:10pt;"><sup style="vertical-align:top;line-height:120%;font-size:7pt">&#174;</sup></font><font style="font-family:inherit;font-size:10pt;">, Lima</font><font 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style="font-family:inherit;font-size:10pt;">, Plainville Farms</font><font style="font-family:inherit;font-size:10pt;"><sup style="vertical-align:top;line-height:120%;font-size:7pt">&#174;</sup></font><font style="font-family:inherit;font-size:10pt;">, Rice Dream</font><font style="font-family:inherit;font-size:10pt;"><sup style="vertical-align:top;line-height:120%;font-size:7pt">&#174;</sup></font><font style="font-family:inherit;font-size:10pt;">, Robertson&#8217;s</font><font style="font-family:inherit;font-size:10pt;"><sup style="vertical-align:top;line-height:120%;font-size:7pt">&#174;</sup></font><font style="font-family:inherit;font-size:10pt;">, Rudi&#8217;s Gluten-Free Bakery</font><font style="font-family:inherit;font-size:10pt;"><sup style="vertical-align:top;line-height:120%;font-size:7pt">&#174;</sup></font><font style="font-family:inherit;font-size:10pt;">, Rudi&#8217;s Organic Bakery</font><font style="font-family:inherit;font-size:10pt;"><sup style="vertical-align:top;line-height:120%;font-size:7pt">&#174;</sup></font><font style="font-family:inherit;font-size:10pt;">, Sensible Portions</font><font style="font-family:inherit;font-size:10pt;"><sup style="vertical-align:top;line-height:120%;font-size:7pt">&#174;</sup></font><font style="font-family:inherit;font-size:10pt;">, Spectrum Organics</font><font style="font-family:inherit;font-size:10pt;"><sup style="vertical-align:top;line-height:120%;font-size:7pt">&#174;</sup></font><font style="font-family:inherit;font-size:10pt;">, Soy Dream</font><font style="font-family:inherit;font-size:10pt;"><sup style="vertical-align:top;line-height:120%;font-size:7pt">&#174;</sup></font><font style="font-family:inherit;font-size:10pt;">, Sun-Pat</font><font style="font-family:inherit;font-size:10pt;"><sup style="vertical-align:top;line-height:120%;font-size:7pt">&#174;</sup></font><font style="font-family:inherit;font-size:10pt;">, SunSpire</font><font style="font-family:inherit;font-size:10pt;"><sup style="vertical-align:top;line-height:120%;font-size:7pt">&#174;</sup></font><font style="font-family:inherit;font-size:10pt;">, Terra</font><font style="font-family:inherit;font-size:10pt;"><sup style="vertical-align:top;line-height:120%;font-size:7pt">&#174;</sup></font><font style="font-family:inherit;font-size:10pt;">, The Greek Gods</font><font style="font-family:inherit;font-size:10pt;"><sup style="vertical-align:top;line-height:120%;font-size:7pt">&#174;</sup></font><font style="font-family:inherit;font-size:10pt;">, Tilda</font><font style="font-family:inherit;font-size:10pt;"><sup style="vertical-align:top;line-height:120%;font-size:7pt">&#174;</sup></font><font style="font-family:inherit;font-size:10pt;">, WestSoy</font><font style="font-family:inherit;font-size:10pt;"><sup style="vertical-align:top;line-height:120%;font-size:7pt">&#174;</sup></font><font style="font-family:inherit;font-size:10pt;"> and Yves Veggie Cuisine</font><font style="font-family:inherit;font-size:10pt;"><sup style="vertical-align:top;line-height:120%;font-size:7pt">&#174;</sup></font><font style="font-family:inherit;font-size:10pt;">.&#160; The Company&#8217;s personal care products are marketed under the Alba Botanica</font><font style="font-family:inherit;font-size:10pt;"><sup style="vertical-align:top;line-height:120%;font-size:7pt">&#174;</sup></font><font style="font-family:inherit;font-size:10pt;">, Avalon Organics</font><font style="font-family:inherit;font-size:10pt;"><sup style="vertical-align:top;line-height:120%;font-size:7pt">&#174;</sup></font><font style="font-family:inherit;font-size:10pt;">, Earth&#8217;s Best</font><font style="font-family:inherit;font-size:10pt;"><sup style="vertical-align:top;line-height:120%;font-size:7pt">&#174;</sup></font><font style="font-family:inherit;font-size:10pt;">, JASON</font><font style="font-family:inherit;font-size:10pt;"><sup style="vertical-align:top;line-height:120%;font-size:7pt">&#174;</sup></font><font style="font-family:inherit;font-size:10pt;">, Live Clean</font><font style="font-family:inherit;font-size:10pt;"><sup style="vertical-align:top;line-height:120%;font-size:7pt">&#174;</sup></font><font style="font-family:inherit;font-size:10pt;"> and Queen Helene</font><font style="font-family:inherit;font-size:10pt;"><sup style="vertical-align:top;line-height:120%;font-size:7pt">&#174;</sup></font><font style="font-family:inherit;font-size:10pt;"> brands.</font></div><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">During fiscal year 2016, the Company commenced a strategic review, which it called &#8220;Project Terra,&#8221; that resulted in the Company redefining its core platforms, starting with the United States segment, for future growth based upon consumer trends to create and inspire A Healthier Way of Life&#8482;. In addition, beginning in fiscal year 2017, the Company launched Cultivate Ventures (&#8220;Cultivate&#8221;), a venture unit with a threefold purpose: (i) to strategically invest in the Company&#8217;s smaller brands in high potential categories such as BluePrint</font><font style="font-family:inherit;font-size:10pt;"><sup style="vertical-align:top;line-height:120%;font-size:7pt">&#174;</sup></font><font style="font-family:inherit;font-size:10pt;"> cold-pressed juices, SunSpire</font><font style="font-family:inherit;font-size:10pt;"><sup style="vertical-align:top;line-height:120%;font-size:7pt">&#174;</sup></font><font style="font-family:inherit;font-size:10pt;"> chocolates and DeBoles</font><font style="font-family:inherit;font-size:10pt;"><sup style="vertical-align:top;line-height:120%;font-size:7pt">&#174;</sup></font><font style="font-family:inherit;font-size:10pt;"> pasta by giving those products a dedicated, creative focus for refresh and relaunch; (ii) to incubate small acquisitions until they reach the scale for the Company&#8217;s core platforms; and (iii) to invest in concepts, products and technology that focus on health and wellness. See Note 16, </font><font style="font-family:inherit;font-size:10pt;font-style:italic;">Segment Information</font><font style="font-family:inherit;font-size:10pt;">, for information on the Company&#8217;s operating and reportable segments and the effect the formation of Cultivate had thereon.</font></div></div>

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