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SEGMENTS | 3 Months Ended
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Sep. 30, 2019
Segment Reporting [Abstract] |
SEGMENTS | (17) SEGMENTS The Company delivers its solutions and manages its business through two reportable business segments, the Supply Chain Services segment and the Performance Services segment. The Supply Chain Services segment includes the Company's GPO, and direct sourcing activities. The Performance Services segment includes the Company's informatics, collaborative, consulting services and insurance services businesses. The following table presents disaggregated revenue by business segment and underlying source (in thousands):
| Three Months Ended September 30,
Net revenue: | 2019 | 2018
Supply Chain Services |  |
Net administrative fees | $ | 172,403 |  | $ | 162,000 |
Other services and support | 2,560 |  | 1,211 |
Services | 174,963 |  | 163,211 |
Products | 48,121 |  | 43,659 |
Total Supply Chain Services | 223,084 |  | 206,870 |
Performance Services | 79,326 |  | 85,732 |
Net revenue | $ | 302,410 |  | $ | 292,602 |
Additional segment information related to depreciation and amortization expense, capital expenditures and total assets was as follows (in thousands):
| Three Months Ended September 30,
| 2019 | 2018
Depreciation and amortization expense (a): |  |
Supply Chain Services | $ | 4,825 |  | $ | 4,704 |
Performance Services | 30,620 |  | 25,913 |
Corporate | 2,134 |  | 2,613 |
Total depreciation and amortization expense | $ | 37,579 |  | $ | 33,230 |
Capital expenditures: |  |
Supply Chain Services | $ | 1,477 |  | $ | 495 |
Performance Services | 18,504 |  | 19,374 |
Corporate | 2,002 |  | 5,193 |
Total capital expenditures | $ | 21,983 |  | $ | 25,062 |
Total assets (b): | September 30, 2019 | June 30, 2019
Supply Chain Services | $ | 1,129,999 |  | $ | 1,111,934 |
Performance Services | 933,856 |  | 941,183 |
Corporate | 530,729 |  | 516,450 |
Total assets | $ | 2,594,584 |  | $ | 2,569,567 |
(a) | Includes amortization of purchased intangible assets.
(b) | As of June 30, 2019, Supply Chain Services total assets included $24.6 million in assets of discontinued operations related to the specialty pharmacy business.
The Company uses Segment Adjusted EBITDA (a financial measure not determined in accordance with generally accepted accounting principles ("Non-GAAP")) as its primary measure of profit or loss to assess segment performance and to determine the allocation of resources. The Company also uses Segment Adjusted EBITDA to facilitate the comparison of the segment operating performance on a consistent basis from period to period. The Company defines Segment Adjusted EBITDA as the segment's net revenue and equity in net income of unconsolidated affiliates less operating expenses directly attributable to the segment excluding depreciation and amortization, amortization of purchased intangible assets, merger and acquisition related expenses and non-recurring or non-cash items. Operating expenses directly attributable to the segment include expenses associated with sales and marketing, general and administrative and product development activities specific to the operation of each segment. Non-recurring items are income or expenses and other items that have not been earned or incurred within the prior two years and are not expected to recur within the next two years. General and administrative corporate expenses that are not specific to a particular segment are not included in the calculation of Segment Adjusted EBITDA. Segment Adjusted EBITDA also excludes any income and expense that has been classified as discontinued operations. For more information on Segment Adjusted EBITDA and the use of Non-GAAP financial measures, see "Our Use of Non-GAAP Financial Measures" within Item 2 - Management's Discussion and Analysis of Financial Condition and Results of Operations. A reconciliation of income before income taxes to Segment Adjusted EBITDA is as follows (in thousands):
| Three Months Ended September 30,
| 2019 | 2018
Income before income taxes | $ | 80,553 |  | $ | 94,690 |
Equity in net income of unconsolidated affiliates (a) | (3,607 | ) | (2,690 | )
Interest and investment (income) loss, net (b) | (476 | ) | 688 |
Other expense | 7,577 |  | 1,941 |
Operating income | 84,047 |  | 94,629 |
Depreciation and amortization | 24,535 |  | 20,253 |
Amortization of purchased intangible assets | 13,044 |  | 12,977 |
Stock-based compensation (c) | 3,852 |  | 6,233 |
Acquisition and disposition related expenses | 6,141 |  | 1,037 |
Remeasurement of tax receivable agreement liabilities (d) | 4,674 |  | — |
ERP implementation expenses (e) | 23 |  | 326 |
Equity in net income of unconsolidated affiliates (a) | 3,607 |  | 2,690 |
Deferred compensation plan income (f) | 241 |  | 1,336 |
Other expense, net | 92 |  | 45 |
Non-GAAP Adjusted EBITDA | $ | 140,256 |  | $ | 139,526 |
Segment Non-GAAP Adjusted EBITDA: |  |
Supply Chain Services | $ | 149,911 |  | $ | 136,310 |
Performance Services | 20,376 |  | 30,575 |
Corporate | (30,031 | ) | (27,359 | )
Non-GAAP Adjusted EBITDA | $ | 140,256 |  | $ | 139,526 |
(a) | Refer to Note 5 - Investments for more information.
(b) | Represents interest expense, net and investment income.
(c) | Represents non-cash employee stock-based compensation expense and stock purchase plan expense of $0.1 million during both of the three months ended September 30, 2019 and 2018.
(d) | The adjustment to TRA liabilities for the three months ended September 30, 2019 is primarily attributable to an increase in the Premier, Inc. effective tax rate related to a state tax liability.
(e) | Represents implementation and other costs associated with the implementation of an enterprise resource planning ("ERP") system.
(f) Represents realized and unrealized gains and losses and dividend income on deferred compensation plan assets.

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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