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SEGMENTS | 9 Months Ended
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Mar. 31, 2023
Segment Reporting [Abstract] |
SEGMENTS | (14) 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 automation business. The following table presents disaggregated revenue by business segment and underlying source (in thousands):
| Three Months Ended March 31, |  | Nine Months Ended March 31,
| 2023 |  | 2022 |  | 2023 |  | 2022
Net revenue: |  |  |  |  |  |  |
Supply Chain Services |  |  |  |  |  |  |
Net administrative fees | $ | 148,441 |  |  | $ | 148,396 |  |  | $ | 452,870 |  |  | $ | 448,261 |
Software licenses, other services and support | 11,032 |  |  | 8,914 |  |  | 35,963 |  |  | 27,165 |
Services and software licenses | 159,473 |  |  | 157,310 |  |  | 488,833 |  |  | 475,426 |
Products | 57,212 |  |  | 93,629 |  |  | 183,066 |  |  | 323,825 |
Total Supply Chain Services (a) | 216,685 |  |  | 250,939 |  |  | 671,899 |  |  | 799,251 |
Performance Services |  |  |  |  |  |  |
Software licenses, other services and support |  |  |  |  |  |  |
SaaS-based products subscriptions | 44,685 |  |  | 49,347 |  |  | 142,097 |  |  | 144,357 |
Consulting services | 22,087 |  |  | 16,342 |  |  | 57,963 |  |  | 46,440 |
Software licenses | 14,400 |  |  | 12,169 |  |  | 51,197 |  |  | 44,033 |
Other(b) | 24,384 |  |  | 19,045 |  |  | 72,603 |  |  | 58,132 |
Total Performance Services (a) | 105,556 |  |  | 96,903 |  |  | 323,860 |  |  | 292,962 |
Total segment net revenue | 322,241 |  |  | 347,842 |  |  | 995,759 |  |  | 1,092,213 |
Eliminations (a) | (9) |  |  | (9) |  |  | (28) |  |  | (18) |
Net revenue | $ | 322,232 |  |  | $ | 347,833 |  |  | $ | 995,731 |  |  | $ | 1,092,195 |
_________________________________ (a)Includes intersegment revenue that is eliminated in consolidation. Intersegment revenue is not separately identified in Segments as the amounts are not material. (b)Includes revenue from Contigo Health, Remitra and other PINC AI revenue. Additional segment information related to depreciation and amortization expense, capital expenditures and total assets was as follows (in thousands):
| Three Months Ended March 31, |  | Nine Months Ended March 31,
| 2023 |  | 2022 |  | 2023 |  | 2022
Depreciation and amortization expense (a): |  |  |  |  |  |  |
Supply Chain Services | $ | 13,002 |  |  | $ | 14,114 |  |  | $ | 40,862 |  |  | $ | 40,710 |
Performance Services | 17,189 |  |  | 16,163 |  |  | 53,407 |  |  | 48,349 |
Corporate | 2,000 |  |  | 2,282 |  |  | 6,299 |  |  | 6,705 |
Total depreciation and amortization expense | $ | 32,191 |  |  | $ | 32,559 |  |  | $ | 100,568 |  |  | $ | 95,764 |
Capital expenditures: |  |  |  |  |  |  |
Supply Chain Services | $ | 6,571 |  |  | $ | 6,740 |  |  | $ | 19,586 |  |  | $ | 22,212 |
Performance Services | 13,311 |  |  | 10,926 |  |  | 38,576 |  |  | 34,312 |
Corporate | 166 |  |  | 735 |  |  | 302 |  |  | 4,537 |
Total capital expenditures | $ | 20,048 |  |  | $ | 18,401 |  |  | $ | 58,464 |  |  | $ | 61,061 |
| March 31, 2023 |  | June 30, 2022
Total assets: |  |  |
Supply Chain Services | $ | 1,355,552 |  |  | $ | 1,406,108 |
Performance Services | 1,261,241 |  |  | 1,054,687 |
Corporate | 896,047 |  |  | 896,336 |
Total assets | 3,512,840 |  |  | 3,357,131 |
Eliminations (b) | (323) |  |  | (4) |
Total assets, net | $ | 3,512,517 |  |  | $ | 3,357,127 |
_________________________________ (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 expense 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 2 - Management's Discussion and Analysis of Financial Condition and Results of Operations. A reconciliation of income before income taxes to unaudited Segment Adjusted EBITDA, a Non-GAAP financial measure, is as follows (in thousands):
| Three Months Ended March 31, |  | Nine Months Ended March 31,
| 2023 |  | 2022 |  | 2023 |  | 2022
Income before income taxes | $ | 65,881 |  |  | $ | 53,763 |  |  | $ | 215,748 |  |  | $ | 277,701 |
Equity in net income of unconsolidated affiliates (a) | (4,630) |  |  | (3,991) |  |  | (14,547) |  |  | (17,165) |
Interest expense, net | 4,269 |  |  | 2,804 |  |  | 11,759 |  |  | 8,465 |
Gain on FFF Put and Call Rights (b) | — |  |  | — |  |  | — |  |  | (64,110) |
Other (income) expense, net | (2,954) |  |  | 4,248 |  |  | (3,720) |  |  | 2,176 |
Operating income | 62,566 |  |  | 56,824 |  |  | 209,240 |  |  | 207,067 |
Depreciation and amortization | 20,275 |  |  | 21,408 |  |  | 65,153 |  |  | 62,874 |
Amortization of purchased intangible assets | 11,916 |  |  | 11,151 |  |  | 35,415 |  |  | 32,890 |
Stock-based compensation (c) | 6,709 |  |  | 14,149 |  |  | 16,859 |  |  | 38,229 |
Acquisition- and disposition-related expenses | 6,294 |  |  | 3,115 |  |  | 11,592 |  |  | 10,282 |
Strategic initiative and financial restructuring-related expenses | 1,942 |  |  | 5,540 |  |  | 10,988 |  |  | 9,314 |
Equity in net income of unconsolidated affiliates (a) | 4,630 |  |  | 3,991 |  |  | 14,547 |  |  | 17,165 |
Deferred compensation plan expense (income) (d) | 2,859 |  |  | (3,994) |  |  | 3,148 |  |  | (1,923) |
Other reconciling items, net | 95 |  |  | 4 |  |  | 260 |  |  | 9 |
Non-GAAP Adjusted EBITDA | $ | 117,286 |  |  | $ | 112,188 |  |  | $ | 367,202 |  |  | $ | 375,907 |
Segment Non-GAAP Adjusted EBITDA: |  |  |  |  |  |  |
Supply Chain Services (e) | $ | 122,040 |  |  | $ | 118,034 |  |  | $ | 371,228 |  |  | $ | 381,586 |
Performance Services (e) | 25,018 |  |  | 26,552 |  |  | 87,587 |  |  | 89,277 |
Corporate | (29,772) |  |  | (32,398) |  |  | (91,613) |  |  | (94,956) |
Non-GAAP Adjusted EBITDA | $ | 117,286 |  |  | $ | 112,188 |  |  | $ | 367,202 |  |  | $ | 375,907 |
_________________________________ (a)Refer to Note 4 - Investments for more information. (b)Refer to Note 5 - Fair Value Measurements for more information. (c)Includes non-cash employee stock-based compensation expense and stock purchase plan expense of $0.1 million for both the three months ended March 31, 2023 and 2022 and $0.5 million and $0.4 million for the nine months ended March 31, 2023 and 2022, respectively. (d)Represents realized and unrealized gains and (losses) and dividend income on deferred compensation plan assets. (e)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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