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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 __________________________________________________________________________________________
FORM 10-Q
 __________________________________________________________________________________________
(Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 2022
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from          to         
Commission File Number 001-36092
 __________________________________________________________________________________________
Premier, Inc.
(Exact name of registrant as specified in its charter)
 ___________________________________________________________________________________________
Delaware 35-2477140
(State or other jurisdiction of
incorporation or organization)
 
(I.R.S. Employer
Identification No.)
13034 Ballantyne Corporate Place
Charlotte,
North Carolina
 28277
(Address of principal executive offices) (Zip Code)
(704357-0022
(Registrant’s telephone number, including area code)
 __________________________________________________________________________________________
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Class A Common Stock, $0.01 Par ValuePINCNASDAQ Global Select Market
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  ☒     No   ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).  Yes  ☒ No  ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer Accelerated filerNon-accelerated filer
Smaller reporting companyEmerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes   No   ☒
As of April 28, 2022, there were 117,986,674 shares of the registrant’s Class A common stock, par value $0.01 per share outstanding.



TABLE OF CONTENTS




CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
Statements made in this quarterly report for the nine months ended March 31, 2022 for Premier, Inc. (this “Quarterly Report”) that are not statements of historical or current facts, such as those under the heading “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from historical results or from any future results or projections expressed or implied by such forward-looking statements. In addition to statements that explicitly describe such risks and uncertainties, readers are urged to consider statements in conditional or future tenses or that include terms such as “believes,” “belief,” “expects,” “estimates,” “intends,” “anticipates” or “plans” to be uncertain and forward-looking. Forward-looking statements may include comments as to our beliefs and expectations regarding future events and trends affecting our business and are necessarily subject to uncertainties, many of which are outside our control. Factors that could cause actual results to differ materially from those indicated in any forward-looking statement include, but are not limited to:
the impact of the continuing financial and operational uncertainty due to the coronavirus pandemic or other pandemics and associated supply chain disruptions and inflation;
global economic and political instability and conflicts, such as the conflict between Russia and Ukraine, could adversely affect our business, financial condition or results of operations, including issues such as rising inflation and global supply-chain disruption;
competition which could limit our ability to maintain or expand market share within our industry;
consolidation in the healthcare industry;
potential delays recognizing or increasing revenue if the sales cycle or implementation period takes longer than expected;
the impact on us if members of our group purchasing organization (“GPO”) programs reduce activity levels or terminate or elect not to renew their contracts on substantially similar terms or at all;
the rate at which the markets for our software as a service (“SaaS”) or licensed-based clinical analytics products and services develop;
the dependency of our members on payments from third-party payers;
our reliance on administrative fees that we receive from GPO suppliers;
our ability to maintain third-party provider and strategic alliances or enter into new alliances;
our ability to timely offer new and innovative products and services;
the portion of revenues we receive from our largest members;
risks and expenses related to future acquisition opportunities and integration of previous or future acquisitions;
financial and operational risks associated with non-controlling investments in other businesses or other joint ventures that we do not control, particularly early-stage companies;
pending and potential litigation;
our reliance on Internet infrastructure, bandwidth providers, data center providers and other third parties and our own systems for providing services to our users;
data loss or corruption due to failures or errors in our systems and service disruptions at our data centers, or breaches or failures of our security measures;
the financial, operational and reputational consequences of cyber-attacks or other data security breaches that disrupt our operations or result in the dissemination of proprietary or confidential information about us or our members or other third parties;
our ability to use, disclose, de-identify or license data and to integrate third-party technologies;
our use of “open source” software;
our dependency on contract manufacturing facilities located in various parts of the world;
3


inventory risk we face in the event of a potential material price decline for the personal protective equipment or other products we may have purchased at elevated market prices or fixed prices;
our ability to attract, hire, integrate and retain key personnel;
adequate protection of our intellectual property and potential claims against our use of the intellectual property of third parties;
potential sales and use tax liability in certain jurisdictions;
changes in tax laws that materially impact our tax rate, income tax expense, anticipated tax benefits, deferred tax assets, cash flows and profitability;
our indebtedness and our ability to obtain additional financing on favorable terms, including our ability to renew or replace our existing long-term credit facility at maturity;
fluctuation of our quarterly cash flows, revenues and results of operations;
changes and uncertainty in the political, economic or regulatory environment affecting healthcare organizations, including with respect to the status of the Patient Protection and Affordable Care Act, as amended by the Healthcare and Education Reconciliation Act of 2010 and pandemic-related public health and reimbursement measures;
our compliance with complex international, federal and state laws governing financial relationships among healthcare providers and the submission of false or fraudulent healthcare claims;
interpretation and enforcement of current or future antitrust laws and regulations;
compliance with complex federal, state and international privacy, security and breach notification laws;
compliance with current or future laws, rules or regulations relating to information blocking provisions of the 21st Century Cures Act issued by the Office of the National Coordinator for Health Information Technology (the “ONC Rules”) that may cause our certified Health Information Technology products to be regulated by the ONC Rules;
compliance with current or future laws, rules or regulations adopted by the Food & Drug Administration applicable to our software applications that may be considered medical devices;
the impact of payments required under notes payable to former limited partners related to the early termination of the Unit Exchange and Tax Receivable Acceleration Agreements (the “Unit Exchange Agreements”) issued in connection with our August 2020 Restructuring on our overall cash flow and our ability to fully realize the expected tax benefits to match such fixed payment obligations under those notes payable;
provisions in our certificate of incorporation and bylaws and provisions of Delaware law that discourage or prevent strategic transactions, including a takeover of us;
failure to maintain an effective system of internal controls over financial reporting or an inability to remediate any weaknesses identified and the related costs of remediation;
the impact on the price of our Class A common stock if we cease paying dividends or reduce dividend payments from current levels;
the number of shares of Class A common stock repurchased by us pursuant to any then existing Class A common stock repurchase program and the timing of any such repurchases;
the number of shares of Class A common stock eligible for sale after the issuance of Class A common stock in our August 2020 Restructuring and the potential impact of such sales; and
the risk factors discussed under the heading “Risk Factors” under Item 1A of our Annual Report on Form 10-K for the fiscal year ended June 30, 2021 (the “2021 Annual Report”), filed with the Securities and Exchange Commission (“SEC”) and this Quarterly Report on Form 10-Q.
More information on potential factors that could affect our financial results is included from time to time in the “Cautionary Note Regarding Forward-Looking Statements,” “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” or similarly captioned sections of this Quarterly Report and our other periodic and current filings made from time to time with the SEC, which are available on our website at http://investors.premierinc.com/ (the contents of which are not part of this Quarterly Report). You should not place undue reliance on any of our forward-looking statements, which speak only as of the date they are made. We undertake no obligation to publicly update or revise any
4


forward-looking statements, whether as a result of new information or future events or otherwise. Furthermore, we cannot guarantee future results, events, levels of activity, performance or achievements.
Certain Definitions
For periods prior to August 11, 2020, references to “member owners” are references to participants in our GPO programs that were also limited partners of Premier Healthcare Alliance L.P. (“Premier LP”), sometimes referred to as “LPs,” that held Class B common units of Premier LP and shares of our Class B common stock.
For periods on or after August 11, 2020, references to “members” are references to health systems and other customers that participate in our GPO programs, or utilize any of our programs or services, some of which were formerly member owners.
References to the “August 2020 Restructuring” are references to our corporate restructuring on August 11, 2020 in which we (i) eliminated our dual-class ownership structure, through an exchange under which member owners converted their Class B common units in Premier LP and corresponding Class B common shares of Premier, Inc. into our Class A common stock, on a one-for-one basis, and (ii) exercised our right to terminate the Tax Receivable Agreement (the “TRA”) by providing all former limited partners a notice of termination and the amount of the expected payment to be made to each limited partner pursuant to the early termination provisions of the TRA with a determination date of August 10, 2020. For additional information and details regarding the August 2020 Restructuring, see our 2021 Annual Report.
References to the “Subsidiary Reorganization” are references to an internal legal organization of our corporate subsidiaries in December 2021 for the purpose of simplifying our subsidiary reporting structure. For additional information and details regarding the Subsidiary Reorganization, see our Quarterly Report for the period ended December 31, 2021.
5


PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
PREMIER, INC.
Condensed Consolidated Balance Sheets
(Unaudited)
(In thousands, except share data)
March 31, 2022June 30, 2021
Assets
Cash and cash equivalents$179,503 $129,141 
Accounts receivable (net of $852 and $1,174 allowance for credit losses, respectively)
125,632 142,557 
Contract assets (net of $1,251 and $1,110 allowance for credit losses, respectively)
255,693 266,173 
Inventory130,275 176,376 
Prepaid expenses and other current assets64,897 68,049 
Total current assets756,000 782,296 
Property and equipment (net of $574,185 and $518,332 accumulated depreciation, respectively)
222,583 224,271 
Intangible assets (net of $322,802 and $289,912 accumulated amortization, respectively)
373,752 396,642 
Goodwill999,913 999,913 
Deferred income tax assets744,899 781,824 
Deferred compensation plan assets53,914 59,581 
Investments in unconsolidated affiliates209,205 153,224 
Operating lease right-of-use assets41,764 48,199 
Other assets113,429 76,948 
Total assets$3,515,459 $3,522,898 
Liabilities and stockholders' equity
Accounts payable$53,720 $85,413 
Accrued expenses58,129 48,144 
Revenue share obligations240,152 226,883 
Accrued compensation and benefits79,621 100,713 
Deferred revenue33,755 34,058 
Current portion of notes payable to former limited partners97,342 95,948 
Line of credit and current portion of long-term debt253,053 78,295 
Other current liabilities47,403 47,330 
Total current liabilities863,175 716,784 
Long-term debt, less current portion2,280 5,333 
Notes payable to former limited partners, less current portion225,814 298,995 
Deferred compensation plan obligations53,914 59,581 
Deferred consideration, less current portion57,762 56,809 
Operating lease liabilities, less current portion35,678 43,102 
Other liabilities43,234 112,401 
Total liabilities1,281,857 1,293,005 
Commitments and contingencies (Note 14)
6


March 31, 2022June 30, 2021
Stockholders' equity:
Class A common stock, $0.01 par value, 500,000,000 shares authorized; 124,415,319 shares issued and 117,985,944 shares outstanding at March 31, 2022 and 122,533,051 shares issued and outstanding at June 30, 2021
1,244 1,225 
Treasury stock, at cost; 6,429,375 and 0 shares at March 31, 2022 and June 30, 2021, respectively
(250,129) 
Additional paid-in capital2,150,313 2,059,194 
Retained earnings332,171 169,474 
Accumulated other comprehensive income3  
Total stockholders' equity2,233,602 2,229,893 
Total liabilities and stockholders' equity$3,515,459 $3,522,898 
See accompanying notes to the unaudited condensed consolidated financial statements.
7


PREMIER, INC.
Condensed Consolidated Statements of Income and Comprehensive Income
(Unaudited)
(In thousands, except per share data)
Three Months EndedNine Months Ended
March 31,March 31,
2022202120222021
Net revenue:
Net administrative fees$148,396 $146,553 $448,261 $424,537 
Other services and support105,808 107,375 320,109 304,020 
Services254,204 253,928 768,370 728,557 
Products93,629 215,995 323,825 511,080 
Net revenue347,833 469,923 1,092,195 1,239,637 
Cost of revenue:
Services46,735 46,980 136,326 125,852 
Products88,621 211,136 294,916 496,286 
Cost of revenue135,356 258,116 431,242 622,138 
Gross profit212,477 211,807 660,953 617,499 
Operating expenses:
Selling, general and administrative143,676 134,502 418,330 388,453 
Research and development826 715 2,666 2,013 
Amortization of purchased intangible assets11,151 10,400 32,890 33,864 
Operating expenses155,653 145,617 453,886 424,330 
Operating income56,824 66,190 207,067 193,169 
Equity in net income of unconsolidated affiliates3,991 5,524 17,165 16,023 
Interest expense, net(2,804)(3,225)(8,465)(8,742)
(Loss) gain on FFF Put and Call Rights (5,195)64,110 (21,621)
Other (expense) income, net(4,248)1,594 (2,176)10,167 
Other (expense) income, net(3,061)(1,302)70,634 (4,173)
Income before income taxes53,763 64,888 277,701 188,996 
Income tax expense (benefit) 14,694 13,444 40,094 (64,880)
Net income39,069 51,444 237,607 253,876 
Net income attributable to non-controlling interest(654)(3,123)(1,643)(15,903)
Adjustment of redeemable limited partners' capital to redemption amount   (26,685)
Net income attributable to stockholders$38,415 $48,321 $235,964 $211,288 
Comprehensive income:
Net income$39,069 $51,444 $237,607 $253,876 
Comprehensive income attributable to non-controlling interest(654)(3,123)(1,643)(15,903)
Foreign currency translation gain4  3  
Comprehensive income attributable to stockholders$38,419 $48,321 $235,967 $237,973 
Weighted average shares outstanding:
Basic118,697 122,254 120,957 114,596 
Diluted119,813 123,116 122,302 115,365 
Earnings per share attributable to stockholders:
Basic$0.32 $0.40 $1.95 $1.84 
Diluted$0.32 $0.39 $1.94 $1.83 
See accompanying notes to the unaudited condensed consolidated financial statements.
8


PREMIER, INC.
Condensed Consolidated Statements of Stockholders' Equity
Nine Months Ended March 31, 2022 and 2021
(Unaudited)
(In thousands)
Class A
Common Stock
Treasury StockAdditional Paid-In CapitalAccumulated Other Comprehensive Income (Loss)Retained EarningsTotal Stockholders' Equity
SharesAmountSharesAmount
Balance at June 30, 2021122,533 $1,225  $ $2,059,194 $ $169,474 $2,229,893 
Issuance of Class A common stock under equity incentive plan1,239 13 — — 22,851 — — 22,864 
Treasury stock(1,091)— 1,091 (42,628)— — — (42,628)
Stock-based compensation expense— — — — 7,554 — — 7,554 
Repurchase of vested restricted units for employee tax-withholding— — — — (9,171)— — (9,171)
Net income— — — — — — 121,306 121,306 
Net loss attributable to non-controlling interest— — — — (698)— 698  
Dividends ($0.20 per share)
— — — — — — (24,877)(24,877)
Non-controlling interest related to acquisition— — — — 23,145 — — 23,145 
Balance at September 30, 2021122,681 1,238 1,091 (42,628)2,102,875  266,601 2,328,086 
Issuance of Class A common stock under equity incentive plan579 5 — — 14,398 — — 14,403 
Issuance of Class A common stock under employee stock purchase plan52 1 — — 1,976 — — 1,977 
Treasury stock(3,377)— 3,377 (133,396)— — — (133,396)
Stock-based compensation expense— — — — 16,234 — — 16,234 
Repurchase of vested restricted units for employee tax-withholding— — — — (1,495)— — (1,495)
Net income— — — — — — 77,232 77,232 
Net income attributable to non-controlling interest— — — — 1,687 — (1,687) 
Change in ownership of consolidated entity— — — — 12 — — 12 
Dividends ($0.20 per share)
— — — — — (24,250)(24,250)
Foreign currency translation loss— — — — — (1)— (1)
Balance at December 31, 2021119,935 1,244 4,468 (176,024)2,135,687 (1)317,896 2,278,802 
Issuance of Class A common stock under equity incentive plan12 — — — 118 — — 118 
Treasury stock(1,961)— 1,961 (74,105)— — — (74,105)
Stock-based compensation expense— — — — 14,004 — — 14,004 
Repurchase of vested restricted units for employee tax-withholding— — — — (174)— — (174)
Net income— — — — — — 39,069 39,069 
Net income attributable to non-controlling interest— — — — 654 — (654) 
Change in ownership of consolidated entity— — — — 24 — — 24 
Dividends ($0.20 per share)
— — — — — — (24,140)(24,140)
Foreign currency translation gain— — — — — 4 — 4 
Balance at March 31, 2022117,986 $1,244 6,429 $(250,129)$2,150,313 $3 $332,171 $2,233,602 

9


Class A
Common Stock
Class B
Common Stock
Additional Paid-In CapitalRetained Earnings / (Accumulated Deficit)Total Stockholders' Equity
SharesAmountSharesAmount
Balance at June 30, 202071,627 $716 50,213 $ $138,547 $ $139,263 
Balance at July 1, 202071,627 716 50,213  138,547  139,263 
Impact of change in accounting principle— — — — — (1,228)(1,228)
Adjusted balance at July 1, 202071,627 716 50,213  138,547 (1,228)138,035 
Exchange of Class B common units for Class A common stock by member owners70 1 (70)— 2,436 — 2,437 
Increase in additional paid-in capital related to quarterly exchange by member owners, including associated TRA revaluation— — — — 37,319 — 37,319 
Increase in additional paid-in capital related to final exchange by member owners, including TRA termination— — — — 517,526 — 517,526 
Issuance of Class A common stock under equity incentive plan241 2 — — 642 — 644 
Stock-based compensation expense— — — — 7,229 — 7,229 
Repurchase of vested restricted units for employee tax-withholding— — — — (3,023)— (3,023)
Net income— — — — — 157,528 157,528 
Net income attributable to non-controlling interest— — — — — (11,845)(11,845)
Adjustment of redeemable limited partners' capital to redemption amount— — — — — (26,685)(26,685)
Reclassification of redeemable limited partners' capital to permanent equity— — — — 1,750,840 3,767 1,754,607 
Final exchange of Class B common units for Class A common stock by member owners50,143 502 (50,143)— (502)—  
Early termination payments to members— — — — (438,967)— (438,967)
Dividends ($0.19 per share)
— — — — — (23,381)(23,381)
Balance at September 30, 2020122,081 1,221   2,012,047 98,156 2,111,424 
Issuance of Class A common stock under equity incentive plan102 1 — — 1,770 — 1,771 
Issuance of Class A common stock under employee stock purchase plan45 — — — 1,597 — 1,597 
Stock-based compensation expense— — — — 7,316 — 7,316 
Repurchase of vested restricted units for employee tax-withholding— — — — (28)— (28)
Net income— — — — — 44,904 44,904 
Net income attributable to non-controlling interest— — — — 935 (935) 
Dividends ($0.19 per share)
— — — — — (23,374)(23,374)
Adjustment in additional paid-in capital related to consolidated investment— — — — 318 (318) 
Capital contributions— — — — 1,959 — 1,959 
Non-controlling interest in consolidated investments— — — — 3,690 — 3,690 
Balance at December 31, 2020122,228 1,222   2,029,604 118,433 2,149,259 
Issuance of Class A common stock under equity incentive plan40 1 — — 1,101 — 1,102 
Stock-based compensation expense— — — — 13,056 — 13,056 
Repurchase of vested restricted units for employee tax-withholding— — — — (48)— (48)
Net income— — — —  51,444 51,444 
Net income attributable to non-controlling interest— — — — 3,123 (3,123) 
Dividends ($0.19 per share)
— — — — — (23,403)(23,403)
Balance at March 31, 2021122,268 $1,223  $ $2,046,836 $143,351 $2,191,410 
See accompanying notes to the unaudited condensed consolidated financial statements.
10


PREMIER, INC.
Condensed Consolidated Statements of Cash Flows
(Unaudited)
(In thousands)
Nine Months Ended March 31,
20222021
Operating activities
Net income$237,607 $253,876 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization95,764 89,768 
Equity in net income of unconsolidated affiliates(17,165)(16,023)
Deferred income taxes36,926 (100,150)
Stock-based compensation37,792 27,601 
(Gain) loss on FFF call/put rights(64,110)21,621 
Other4,578 537 
Changes in operating assets and liabilities, net of the effects of acquisitions:
Accounts receivable, inventories, prepaid expenses and other assets91,418 (181,263)
Contract assets(39,139)(43,733)
Accounts payable, accrued expenses, deferred revenue, revenue share obligations and other liabilities(48,882)140,131 
Net cash provided by operating activities334,789 192,365 
Investing activities
Purchases of property and equipment(61,061)(66,911)
Acquisition of businesses and equity method investments, net of cash acquired(26,000)(81,152)
Investment in unconsolidated affiliates(16,000) 
Other(10,000)(1,228)
Net cash used in investing activities(113,061)(149,291)
Financing activities
Payments made on notes payable(75,082)(31,692)
Proceeds from credit facility300,000 225,000 
Payments on credit facility(125,000)(100,000)
Cash dividends paid(72,861)(69,647)
Repurchase of Class A common stock (held as treasury stock)(250,129) 
Proceeds from exercise of stock options37,385  
Distributions to limited partners of Premier LP (9,949)
Payments to limited partners of Premier LP related to tax receivable agreements (24,218)
Other14,318 712 
Net cash used in financing activities(171,369)(9,794)
Effect of exchange rate changes on cash flows3  
Net increase in cash and cash equivalents50,362 33,280 
Cash and cash equivalents at beginning of period129,141 99,304 
Cash and cash equivalents at end of period$179,503 $132,584 
See accompanying notes to the unaudited condensed consolidated financial statements.
11


PREMIER, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
(1) ORGANIZATION
Organization
Premier, Inc. (“Premier” or the “Company”) is a publicly held, for-profit Delaware corporation located in the United States. The Company is a holding company with no material business operations of its own. Following the Subsidiary Reorganization, the Company’s primary asset is its equity interest in its wholly owned subsidiary Premier Healthcare Solutions, Inc., a Delaware corporation (“PHSI”). The Company conducts substantially all of its business operations through PHSI and its other consolidated subsidiaries, including Premier LP. The Company, together with its subsidiaries and affiliates, is a leading healthcare performance improvement company that unites hospitals, health systems, physicians and other healthcare providers to improve and innovate in the clinical, financial and operational areas of their businesses to meet the demands of a rapidly evolving healthcare industry and continues to expand its capabilities to more fully address and coordinate care improvement and standardization in the employer, payor and life sciences markets. The Company also provide services to other businesses including food service, schools and universities.
The Company’s business model and solutions are designed to provide its members and other customers access to scale efficiencies, spread the cost of their development, provide actionable intelligence derived from anonymized data in the Company’s enterprise data warehouse, mitigate the risk of innovation and disseminate best practices to help the Company’s members and other customers succeed in their transformation to higher quality and more cost-effective healthcare.
The Company, together with its subsidiaries and affiliates, delivers its integrated platform of solutions through two business segments: Supply Chain Services and Performance Services. See Note 15 - Segments for further information related to the Company’s reportable business segments. The Supply Chain Services segment includes one of the largest healthcare group purchasing organization (“GPO”) programs in the United States, supply chain co-management and direct sourcing activities. The Performance Services segment consists of three sub-brands: PINC AITM, the Company’s technology and services platform with offerings that help optimize performance in three main areas – clinical intelligence, margin improvement and value-based care – using advanced analytics to identify improvement opportunities, consulting services for clinical and operational design, and workflow solutions to hardwire sustainable change in the provider, life sciences and payer markets; Contigo Health®, the Company’s direct-to-employer business which provides third party administrator services and management of health benefit programs that allow employers to contract directly with healthcare providers; and RemitraTM, the Company’s digital invoicing and payables business which provides services to healthcare providers and their suppliers.
Principles of Consolidation
The accompanying condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the SEC and in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and include the assets, liabilities, revenues and expenses of all majority-owned subsidiaries over which the Company exercised control and when applicable, entities for which the Company had a controlling financial interest or was the primary beneficiary. All intercompany transactions have been eliminated upon consolidation. Accordingly, certain information and disclosures normally included in annual financial statements have been condensed or omitted. The accompanying condensed consolidated financial statements reflect all adjustments that, in the opinion of management, are necessary for a fair presentation of results of operations and financial condition for the interim periods shown, consisting of normal recurring adjustments unless otherwise disclosed. The Company believes that the disclosures are adequate to make the information presented not misleading and should be read in conjunction with the audited consolidated financial statements and related footnotes contained in the 2021 Annual Report.
12


Supplementary Cash Flows Information
The following table presents supplementary cash flows information for the nine months ended March 31, 2022 and 2021 (in thousands):
Nine Months Ended March 31,
20222021
Supplementary non-cash investing and financing activities:
Non-cash additions to property and equipment$129 $ 
Accrued dividend equivalents738 513 
Increase in redeemable limited partners' capital for adjustment to fair value, with offsetting decrease in stockholders' equity 26,685 
Decrease in redeemable limited partners' capital, with offsetting increase in stockholders' equity related to quarterly exchanges by member owners