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EARNINGS PER SHARE
 12 Months Ended
Jun. 30, 2022
Earnings Per Share [Abstract]  
EARNINGS (LOSS) PER SHARE
(13) EARNINGS PER SHARE
Basic earnings per share is computed by dividing net income attributable to stockholders by the weighted average number of shares of common stock outstanding for the period. Net income attributable to stockholders includes the adjustment recorded in the period to reflect redeemable limited partners’ capital at the redemption amount, which was due to the exchange benefit obtained by former limited partners through the ownership of Class B common units, which were canceled in conjunction with the August 2020 Restructuring. Except when the effect would be anti-dilutive, the diluted earnings per share calculation, which is calculated using the treasury stock method, includes the impact of all potentially issuable dilutive shares of Class A common
stock and the effect of the assumed redemption of Class B common units through the issuance of Class A common shares.
The following table provides a reconciliation of the numerator and denominator used for basic and diluted earnings per share (in thousands, except per share amounts):
Year Ended June 30,
202220212020
Numerator for basic earnings per share:
Net income from continuing operations attributable to stockholders (a)
$265,867 $260,837 $598,119 
Net income from discontinued operations attributable to stockholders— — 556 
Net income attributable to stockholders$265,867 $260,837 $598,675 
Numerator for diluted earnings per share:
Net income from continuing operations attributable to stockholders (a)
$265,867 $260,837 $598,119 
Adjustment of redeemable limited partners’ capital to redemption amount— — (468,311)
Net income from continuing operations attributable to non-controlling interest— — 161,318 
Net income from continuing operations265,867 260,837 291,126 
Tax effect on Premier, Inc. net income (b) (c)
— — (40,154)
Adjusted net income from continuing operations attributable to stockholders$265,867 $260,837 $250,972 
Net income from discontinued operations attributable to stockholders$— $— $556 
Net income from discontinued operations attributable to non-controlling interest— — 498 
Adjusted net income from discontinued operations attributable to stockholders$— $— $1,054 
Adjusted net income attributable to stockholders$265,867 $260,837 $252,026 
Denominator for earnings per share:
Basic weighted average shares outstanding (d)
120,220 116,527 67,035 
Effect of dilutive securities: (e)
Stock options206 301 329 
Restricted stock510 376 248 
Performance share awards732 328 67 
Class B shares outstanding— — 55,935 
Diluted weighted average shares and assumed conversions121,668 117,532 123,614 
Basic earnings per share:
Basic earnings per share from continuing operations$2.21 $2.24 $8.92 
Basic earnings per share from discontinued operations— — 0.01 
Basic earnings per share attributable to stockholders$2.21 $2.24 $8.93 
Diluted earnings per share:
Diluted earnings per share from continuing operations$2.19 $2.22 $2.03 
Diluted earnings per share from discontinued operations— — 0.01 
Diluted earnings per share attributable to stockholders$2.19 $2.22 $2.04 
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(a)Net income from continuing operations attributable to stockholders was calculated as follows (in thousands):
Year Ended June 30,
202220212020
Net income from continuing operations$268,318 $304,584 $291,126 
Net income from continuing operations attributable to non-controlling interest(2,451)(17,062)(161,318)
Adjustment of redeemable limited partners’ capital to redemption amount— (26,685)468,311 
Net income from continuing operations attributable to stockholders$265,867 $260,837 $598,119 
(b)For the years ended June 30, 2022 and 2021, the tax expense related to Premier, Inc. retaining the portion of net income from continuing operations attributable to income from non-controlling interest was calculated as a component of the income tax provision for the years ended June 30, 2022 and 2021.
(c)For the year ended June 30, 2020, tax effect on Premier, Inc. net income 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 per share.
(d)Weighted average number of common shares used for basic earnings per share excludes the impact of all potentially issuable dilutive shares of Class A common stock and Class B shares outstanding for the years ended June 30, 2021 and 2020. For the year ended June 30, 2022, there were no Class B shares outstanding as all of the issued and outstanding Class B shares were canceled in conjunction with the August 2020 Restructuring.
(e)For the year ended June 30, 2022, the effect of 0.6 million stock options and restricted stock units was excluded from diluted weighted average shares outstanding as it had an anti-dilutive effect.
For the year ended June 30, 2021, the effect of 1.8 million stock options and restricted stock units and 5.6 million Class B common units were excluded from diluted weighted average shares outstanding as they had an anti-dilutive effect and the effect of less than 0.1 million performance share awards was excluded from diluted weighted average shares outstanding as the awards had not satisfied the applicable performance criteria at the end of the period.
For the year ended June 30, 2020, the effect of 0.8 million stock options and restricted stock units were excluded from diluted weighted average shares outstanding as they had an anti-dilutive effect.