EARNINGS (LOSS) PER SHARE (Tables)

12 Months Ended

Jun. 30, 2018

Reconciliation of Common Shares Used for Earnings (Loss) Per Share

The following table provides a reconciliation of the numerator and denominator used for basic and diluted earnings (loss) per share (in thousands, except per share amounts):



	Year Ended June 30,
	2018			2017		2016
Numerator for basic earnings per share:
Net income attributable to stockholders	$	190,882		$	76,249	$	818,364

Numerator for diluted earnings per share:
Net income attributable to stockholders	$	190,882		$	76,249	$	818,364
Adjustment of redeemable limited partners' capital to redemption amount	(157,581		)	—		(776,750		)
Net income attributable to non-controlling interest in Premier LP	224,269			—		193,547
Net income	257,570			76,249		235,161
Tax effect on Premier, Inc. net income ^(a)	(70,257		)	—		(93,836		)
Adjusted net income	$	187,313		$	76,249	$	141,325

Denominator for basic earnings per share:
Weighted average shares ^(b)	53,518			49,654		42,368

Denominator for diluted earnings per share:
Weighted average shares ^(b)	53,518			49,654		42,368
Effect of dilutive securities: ^(c)
Stock options	275			286		348
Restricted stock	295			215		589
Performance share awards	252			219		1,429
Class B shares outstanding	83,000			—		100,574
Weighted average shares and assumed conversions	137,340			50,374		145,308

Basic earnings per share	$	3.57		$	1.54	$	19.32
Diluted earnings per share	$	1.36		$	1.51	$	0.97


(a)	Represents income tax expense related to Premier, Inc. retaining the portion of net income attributable to income from non-controlling interest in Premier, LP for the purpose of diluted earnings (loss) per share.


(b)	Weighted average number of common shares used for basic earnings per share excludes weighted average shares of non-vested stock options, non-vested restricted stock, non-vested performance share awards and Class B shares outstanding for the years ended June 30, 2018, 2017 and 2016.

(c)

For the year ended June 30, 2018, the effect of 1.6 million stock options were excluded from diluted weighted average shares outstanding as they had an anti-dilutive effect. For the year ended June 30, 2017, the effect of 90.8 million Class B common units exchangeable for Class A common shares and 1.3 million stock options were excluded from diluted weighted average shares outstanding as they had an anti-dilutive effect. For the year ended June 30, 2016, the effect of 1.3 million stock options were excluded from diluted weighted average share outstanding as they had an anti-dilutive effect.

Schedule of Exchange Agreement

The following table presents certain information regarding the exchange of Class B common units and associated Class B common stock for Premier's Class A common stock and/or cash in connection with the quarterly exchanges pursuant to the terms of the Exchange Agreement, including activity related to the Class A and Class B common units and Class A and Class B common stock through the date of the applicable quarterly exchange:



Quarterly Exchange by Member Owners	Class B Common Shares Retired Upon Exchange ^(a)	Class B Common Shares Outstanding After Exchange ^(a)	Class A Common Shares Outstanding After Exchange ^(b)	Percentage of Combined Voting Power Class B/Class A Common Stock
July 31, 2017	1,231,410	86,067,478	53,212,057	62%/38%
October 31, 2017	3,651,294	82,416,184	57,215,143	59%/41%
January 31, 2018	1,006,435	81,169,319	54,829,086	60%/40%
April 30, 2018	642,566	80,335,701	52,585,392	60%/40%
July 31, 2018 ^(c)	816,468	79,519,233	53,256,897	60%/40%


(a)	The number of Class B common shares retired or outstanding are equivalent to the number of Class B common units retired upon exchange or outstanding after the exchange, as applicable.


(b)	The number of Class A common shares outstanding after exchange also includes activity related to the Company's share repurchase program (see Note 14 - Stockholders' Deficit), equity incentive plan (see Note 16 - Stock-Based Compensation) and departed member owners (see Note 13 - Redeemable Limited Partners' Capital).


(c)	As the quarterly exchange occurred on July 31, 2018, the impact of the exchange is not reflected in the consolidated financial statements for the year ended June 30, 2018.