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SEGMENTS
 12 Months Ended
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,
202220212020
Net revenue:
Supply Chain Services
Net administrative fees$601,128 $572,700 $670,593 
Software licenses, other services and support37,312 26,812 12,225 
Services and software licenses638,440 599,512 682,818 
Products393,506 744,122 269,945 
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 subscriptions193,586 198,512 203,390 
Consulting services64,087 58,851 56,936 
Software licenses65,621 56,157 42,556 
Other77,689 63,998 43,947 
Total Performance Services (a)
400,983 377,518 346,829 
Total segment net revenue1,432,929 1,721,152 1,299,592 
Eliminations (a)
(28)— — 
Net revenue$1,432,901 $1,721,152 $1,299,592 
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(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):
202220212020
Supply Chain Services$55,424 $37,073 $25,968 
Performance Services64,674 75,391 118,556 
Corporate9,009 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 Services51,298 72,068 78,231 
Corporate6,465 6,400 9,023 
Total capital expenditures$87,440 $88,876 $94,397 

Year Ended June 30,
Total assets:20222021
Supply Chain Services$1,406,108 $1,550,300 
Performance Services1,054,687 1,043,608 
Corporate896,336 928,939 
Total assets3,357,131 3,522,847 
Eliminations (b)
(4)51 
Total assets, net$3,357,127 $3,522,898 
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(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,
202220212020
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, net11,142 11,964 11,313 
(Gain) loss on FFF put and call rights (b)
(64,110)27,352 (4,690)
Other expense (income), net9,646 (11,967)(4,153)
Operating income260,073 256,917 373,620 
Depreciation and amortization85,171 76,309 97,297 
Amortization of purchased intangible assets43,936 44,753 55,530 
Stock-based compensation (c)
46,809 35,915 21,132 
Acquisition- and disposition-related expenses11,453 18,095 19,319 
Strategic initiative and financial restructuring-related expenses18,005 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 assets18,829 — — 
Other reconciling items, net302 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 
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(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.