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SEGMENTS | 12 Months Ended
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Jun. 30, 2022
Segment Reporting [Abstract] |
SEGMENTS | (19) 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, supply chain co-management, purchased services and direct sourcing activities. The Performance Services segment consists of three sub-brands: PINC AI, the Company’s technology and services platform; Contigo Health, the Company’s direct-to-employer business; and Remitra, the Company’s digital invoicing and payables business. The following table presents disaggregated revenue by reportable business segment and underlying source (in thousands):
| Year Ended June 30,
| 2022 |  | 2021 |  | 2020
Net revenue: |  |  |  |  |
Supply Chain Services |  |  |  |  |
Net administrative fees | $ | 601,128 |  |  | $ | 572,700 |  |  | $ | 670,593 |
Software licenses, other services and support | 37,312 |  |  | 26,812 |  |  | 12,225 |
Services and software licenses | 638,440 |  |  | 599,512 |  |  | 682,818 |
Products | 393,506 |  |  | 744,122 |  |  | 269,945 |
Total Supply Chain Services (a)(b) | 1,031,946 |  |  | 1,343,634 |  |  | 952,763 |
Performance Services |  |  |  |  |
Software licenses, other services and support |  |  |  |  |
SaaS-based products subscriptions | 193,586 |  |  | 198,512 |  |  | 203,390 |
Consulting services | 64,087 |  |  | 58,851 |  |  | 56,936 |
Software licenses | 65,621 |  |  | 56,157 |  |  | 42,556 |
Other | 77,689 |  |  | 63,998 |  |  | 43,947 |
Total Performance Services (a) | 400,983 |  |  | 377,518 |  |  | 346,829 |
Total segment net revenue | 1,432,929 |  |  | 1,721,152 |  |  | 1,299,592 |
Eliminations (a) | (28) |  |  | — |  |  | — |
Net revenue | $ | 1,432,901 |  |  | $ | 1,721,152 |  |  | $ | 1,299,592 |
_________________________________ (a)Includes intersegment revenue that is eliminated in consolidation. Intersegment revenue is not separately identified in Segments as the amounts are not material. (b)Consolidated net revenues for the fiscal year ended June 30, 2021 includes revenue generated from our largest customer, a non-healthcare customer, which accounted for approximately 15% of our consolidated net revenues. The significant increase in revenue generated from our largest customer in the fiscal year ended June 30, 2021 is due to the increase in products revenue primarily as of result of the COVID-19 pandemic. Additional segment information related to depreciation and amortization expense, capital expenditures and total assets was as follows (in thousands):
| Year Ended June 30,
Depreciation and amortization expense (a): | 2022 |  | 2021 |  | 2020
Supply Chain Services | $ | 55,424 |  |  | $ | 37,073 |  |  | $ | 25,968 |
Performance Services | 64,674 |  |  | 75,391 |  |  | 118,556 |
Corporate | 9,009 |  |  | 8,598 |  |  | 8,303 |
Total depreciation and amortization expense | $ | 129,107 |  |  | $ | 121,062 |  |  | $ | 152,827 |
Capital expenditures: |  |  |  |  |
Supply Chain Services | $ | 29,677 |  |  | $ | 10,408 |  |  | $ | 7,143 |
Performance Services | 51,298 |  |  | 72,068 |  |  | 78,231 |
Corporate | 6,465 |  |  | 6,400 |  |  | 9,023 |
Total capital expenditures | $ | 87,440 |  |  | $ | 88,876 |  |  | $ | 94,397 |
| Year Ended June 30,
Total assets: | 2022 |  | 2021
Supply Chain Services | $ | 1,406,108 |  |  | $ | 1,550,300 |
Performance Services | 1,054,687 |  |  | 1,043,608 |
Corporate | 896,336 |  |  | 928,939 |
Total assets | 3,357,131 |  |  | 3,522,847 |
Eliminations (b) | (4) |  |  | 51 |
Total assets, net | $ | 3,357,127 |  |  | $ | 3,522,898 |
_________________________________ (a)Includes amortization of purchased intangible assets. (b)Includes eliminations of intersegment transactions which occur during the ordinary course of 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 less cost of revenue and 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, and including equity in net income of unconsolidated affiliates. 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. 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 7. Management's Discussion and Analysis of Financial Condition and Results of Operations. A reconciliation of income before income taxes to the unaudited Segment Adjusted EBITDA, a Non-GAAP financial measure, is as follows (in thousands):
| Year Ended June 30,
| 2022 |  | 2021 |  | 2020
Income before income taxes | $ | 326,900 |  |  | $ | 250,641 |  |  | $ | 383,687 |
Equity in net income of unconsolidated affiliates (a) | (23,505) |  |  | (21,073) |  |  | (12,537) |
Interest expense, net | 11,142 |  |  | 11,964 |  |  | 11,313 |
(Gain) loss on FFF put and call rights (b) | (64,110) |  |  | 27,352 |  |  | (4,690) |
Other expense (income), net | 9,646 |  |  | (11,967) |  |  | (4,153) |
Operating income | 260,073 |  |  | 256,917 |  |  | 373,620 |
Depreciation and amortization | 85,171 |  |  | 76,309 |  |  | 97,297 |
Amortization of purchased intangible assets | 43,936 |  |  | 44,753 |  |  | 55,530 |
Stock-based compensation (c) | 46,809 |  |  | 35,915 |  |  | 21,132 |
Acquisition- and disposition-related expenses | 11,453 |  |  | 18,095 |  |  | 19,319 |
Strategic initiative and financial restructuring-related expenses | 18,005 |  |  | 6,990 |  |  | 4,228 |
Remeasurement of tax receivable agreement liabilities (d) | — |  |  | — |  |  | (24,584) |
Equity in net income of unconsolidated affiliates (a) | 23,505 |  |  | 21,073 |  |  | 12,537 |
Deferred compensation plan (expense) income (e) | (9,401) |  |  | 12,745 |  |  | 3,904 |
Impairment of assets | 18,829 |  |  | — |  |  | — |
Other reconciling items, net | 302 |  |  | 433 |  |  | 1,057 |
Adjusted EBITDA | $ | 498,682 |  |  | $ | 473,230 |  |  | $ | 564,040 |
Segment Adjusted EBITDA: |  |  |  |  |
Supply Chain Services (f) | $ | 500,854 |  |  | $ | 467,868 |  |  | $ | 570,298 |
Performance Services (f) | 126,938 |  |  | 132,225 |  |  | 111,282 |
Corporate | (129,110) |  |  | (126,863) |  |  | (117,540) |
Adjusted EBITDA | $ | 498,682 |  |  | $ | 473,230 |  |  | $ | 564,040 |
_________________________________ (a)Refer to Note 5 - Investments for further information. (b)Refer to Note 6 - Fair Value Measurements for more information. (c)Represents non-cash employee stock-based compensation expense and stock purchase plan expense of $0.6 million, $0.5 million and $0.4 million for the years ended June 30, 2022, 2021 and 2020, respectively. (d)The adjustments to TRA liabilities for the year ended June 30, 2020 are primarily attributable to decreases in the Premier, Inc. effective tax rate related to state tax liabilities and the TCJA, respectively. (e)Represents realized and unrealized gains and losses and dividend income on deferred compensation plan assets. (f)Includes intersegment revenue which is eliminated in consolidation.

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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://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8924-108599 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8981-108599 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9031-108599 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (f) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (e) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (d) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8736-108599 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9054-108599 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 15 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8657-108599 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI https://asc.fasb.org/topic&trid=2134510 + Details
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