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SEGMENTS (Tables)

3 Months Ended

Sep. 30, 2019

Segment Reporting [Abstract]

Schedule of Segment Information

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.

Reconciliation of Income Before Income Taxes to Segment Adjusted EBITDA

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

Tabular disclosure of all significant reconciling items in the reconciliation of total assets from reportable segments to the entity's consolidated assets.

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-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 30
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-URI http://asc.fasb.org/extlink&oid=115929826&loc=d3e8906-108599

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-Name Accounting Standards Codification
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-Section 50
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- Definition

Tabular disclosure of the reconciliation of profit (loss) from reportable segments to the consolidated income (loss) before income tax expense (benefit) and discontinued operations. Includes, but is not limited to, reconciliation after income tax if income tax is allocated to the reportable segment.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 31
-URI http://asc.fasb.org/extlink&oid=115929826&loc=d3e8924-108599

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-Publisher FASB
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