our business segments our business model and solutions are designed to provide our members access to scale efficiencies , spread the cost of their development , provide actionable intelligence derived from anonymized data in our data warehouse provided by our members , mitigate the risk of innovation and disseminate best practices that will help our member organizations succeed in their transformation to higher quality and more cost-effective healthcare . we deliver our integrated platform of solutions that address the areas of total cost management , quality and safety improvement and population health management through two business segments : supply chain services and performance services . our supply chain services segment includes one of the largest healthcare group purchasing organization programs ( `` gpo `` ) in the united states , serving acute , non-acute , non-healthcare and alternate sites , and includes integrated pharmacy and direct sourcing activities . supply chain services net revenue grew from $ 829.4 million for the year ended june 30 , 2016 to $ 1,101.3 million for the year ended june 30 , 2017 , representing net revenue growth of 33 % , and accounted for 76 % of our overall net revenue . supply chain services net revenue grew from $ 738.3 million for the year ended june 30 , 2015 to $ 829.4 million for the year ended june 30 , 2016 , representing net revenue growth of 12 % , and accounted for 71 % of our overall net revenue . we generate revenue in our supply chain services segment from administrative fees received from suppliers based on the total dollar volume of supplies purchased by our members and through product sales in connection with our integrated pharmacy and direct sourcing activities . our performance services segment includes one of the largest informatics and advisory services businesses in the united states focused on healthcare providers . performance services net revenue grew from $ 333.2 million for the year ended june 30 , 2016 to $ 353.4 million for the year ended june 30 , 2017 , representing revenue growth of 6 % , and accounted for 24 % of our overall net revenue . performance services net revenue grew from $ 268.8 million for the year ended june 30 , 2015 to $ 333.2 million for the year ended june 30 , 2016 , representing net revenue growth of 24 % , and accounted for 29 % of our overall net revenue . our saas informatics products utilize our comprehensive data set to provide actionable intelligence to our members , enabling them to benchmark , analyze and identify areas of improvement across three main categories : cost management , quality and safety and population health management . the performance services segment also includes our technology-enabled performance improvement collaboratives , advisory services , government services and insurance management services . acquisitions acquisition of innovatix and essensa prior to december 2 , 2016 , the company , through its consolidated subsidiary , psci , held 50 % of the membership interests in innovatix . on december 2 , 2016 , the company , through psci , acquired the remaining 50 % ownership interests of innovatix and 48 100 % of the ownership interest in essensa . the purchase price , after adjustments pursuant to the purchase agreement , was $ 336.0 million . the acquisition was funded with borrowings under the company 's credit facility dated june 24 , 2014 , as amended on june 4 , 2015 ( the `` credit facility `` ) . the acquisition provides the sellers an earn-out opportunity of up to $ 43.0 million based on innovatix 's and essensa 's adjusted ebitda ( as defined in the purchase agreement ) for the fiscal year ended june 30 , 2017 . as of june 30 , 2017 , the fair value of the earn-out liability was $ 21.1 million ( see note 5 - fair value measurements ) . innovatix and essensa are gpos focused on serving alternate site health care providers and other non-healthcare organizations throughout the united states . the company reports innovatix and essensa as part of its supply chain services segment . see note 3 - business acquisitions for more information . acquisition of acro pharmaceuticals on august 23 , 2016 , the company , through its consolidated subsidiary , ns3 health , llc , acquired 100 % of the membership interests of acro pharmaceuticals . the aggregate purchase price , after adjustments pursuant to the purchase agreement , was $ 62.9 million . the acquisition was funded with available cash on hand . acro pharmaceuticals is a specialty pharmacy business that provides customized healthcare management solutions to members . the company reports acro pharmaceuticals as part of its supply chain services segment . see note 3 - business acquisitions for more information . acquisition of inflow on october 1 , 2015 , we acquired all of the limited liability company membership interests of inflow , a saas-based software developer specializing in improving the operational , financial and strategic performance of physician practices , for $ 6.1 million in cash . the acquisition provides selling members an earn-out opportunity of up to $ 26.9 million based on inflow 's future annual contractual subscription revenues through december 31 , 2019. the selling members also received restricted stock units of premier with an aggregate equity grant value of $ 2.1 million which vest over a three-year period with restrictions tied to continued employment . we utilized available funds on hand to complete the acquisition . assets acquired and liabilities assumed were recorded at their fair values as of october 1 , 2015 , with the remaining unallocated purchase price recorded as goodwill ( see note 3 - business acquisitions ) . story_separator_special_tag revenue is recognized as these services are provided . product revenue specialty pharmacy revenue is recognized when a product is delivered and is recorded net of the estimated contractual adjustments under agreements with medicare , medicaid and other managed care plans . payments for the products provided under such agreements are based on defined allowable reimbursements rather than on the basis of standard billing rates . the difference between the standard billing rate and allowable reimbursement rate results in contractual adjustments which are recorded as deductions from net revenue . 52 direct sourcing revenue is recognized once the title and risk of loss of medical products have been transferred to members . multiple deliverable arrangements the company enters into agreements where the individual deliverables discussed above , such as saas subscriptions and advisory services , are bundled into a single service arrangement . these agreements are generally provided over a time period ranging from approximately three months to five years after the applicable contract execution date . revenue is allocated to the individual elements within the arrangement based on their relative selling price using vendor specific objective evidence ( `` vsoe `` ) , third-party evidence ( `` tpe `` ) or the estimated selling price ( `` esp `` ) , provided that the total arrangement consideration is fixed and determinable at the inception of the arrangement . the company establishes vsoe , tpe , or esp for each element of a service arrangement based on the price charged for a particular element when it is sold separately in a stand-alone arrangement . all deliverables which are fixed and determinable are recognized according to the revenue recognition methodology described above . certain arrangements include performance targets or other contingent fees that are not fixed and determinable at the inception of the arrangement . if the total arrangement consideration is not fixed and determinable at the inception of the arrangement , the company allocates only that portion of the arrangement that is fixed and determinable to each element . as additional consideration becomes fixed , it is similarly allocated based on vsoe , tpe or esp to each element in the arrangement and recognized in accordance with each element 's revenue recognition policy . performance guarantees on limited occasions , the company enters into agreements which provide for guaranteed performance levels to be achieved by the member over the term of the agreement . in situations with significant performance guarantees , the company defers revenue recognition until the amount is fixed and determinable and all contingencies , including any refund rights , have been satisfied . in the event that guaranteed savings levels are not achieved , the company may have to perform additional services at no additional charge in order to achieve the guaranteed savings or pay the difference between the savings that were guaranteed and the actual achieved savings . deferred revenue deferred revenue consists of unrecognized revenue related to advanced member invoicing or member payments received prior to fulfillment of the company 's revenue recognition criteria . substantially all deferred revenue consists of deferred subscription fees and deferred advisory fees . subscription fees for company-hosted saas applications are deferred until the member 's unique data records have been incorporated into the underlying software database , or until member site-specific software has been implemented and the member has access to the software . deferred advisory fees arise when cash is received from members prior to delivery of service . when the fees are contingent upon meeting a performance target that has not yet been achieved , the advisory fees are deferred until the performance target is met . software development costs costs to develop internal use computer software that are incurred in the preliminary project stage are expensed as incurred . during the development stage , direct consulting costs and payroll and payroll-related costs for employees that are directly associated with each project are capitalized and amortized over the estimated useful life of the software , once it is placed into operation . capitalized costs are amortized on a straight-line basis over the estimated useful lives of the related software applications of up to five years and amortization is included in depreciation and amortization expense . replacements and major improvements are capitalized , while maintenance and repairs are expensed as incurred . some of the more significant estimates and assumptions inherent in this process involve determining the stages of the software development project , the direct costs to capitalize and the estimated useful life of the capitalized software . income taxes the company accounts for income taxes under the asset and liability approach . deferred tax assets or liabilities are determined based on the differences between the financial statement and tax basis of assets and liabilities as measured by the enacted tax rates as well as net operating losses and credit carryforwards , which will be in effect when these differences reverse . the company provides a valuation allowance against net deferred tax assets when , based upon the available evidence , it is more likely than not that the deferred tax assets will not be realized . the company prepares and files tax returns based on interpretations of tax laws and regulations . the company 's tax returns are subject to examination by various taxing authorities in the normal course of business . such examinations may result in future tax and interest assessments by these taxing authorities . 53 in determining the company 's tax expense for financial reporting purposes , the company establishes a reserve for uncertain income tax positions unless it is determined to be `` more likely than not `` that such tax positions would be sustained upon examination , based on their technical merits . that is , for financial reporting purposes , the company only recognizes tax benefits taken on the tax return if it believes it is `` more likely than not `` that such tax positions would be sustained .

liquidity and capital resources our principal source of cash has historically been cash provided by operating activities . from time to time we have used , and expect to use in the future , borrowings under our credit facility as a source of liquidity . our primary cash requirements involve operating expenses , working capital fluctuations , capital expenditures , discretionary cash settlement of class b common unit exchanges under the exchange agreement , acquisitions and related business investments , and other general corporate activities . our capital expenditures typically consist of internally-developed software costs , software purchases and computer hardware purchases . as of june 30 , 2017 and 2016 , we had cash and cash equivalents totaling $ 156.7 million and $ 248.8 million , respectively . as of june 30 , 2017 , there were no marketable securities outstanding , and as of june 30 , 2016 , marketable securities with maturities ranging from three months to five years totaled $ 47.9 million . the marketable securities held at june 30 , 2016 were liquidated in order to help partially fund the equity investment in fff on july 26 , 2016 and the acquisition of acro pharmaceuticals on august 23 , 2016. as of june 30 , 2017 , there were $ 220.0 million outstanding borrowings under the credit facility .


 Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
     ```liquidity and capital resources our principal source of cash has historically been cash provided by operating activities . from time to time we have used , and expect to use in the future , borrowings under our credit facility as a source of liquidity . our primary cash requirements involve operating expenses , working capital fluctuations , capital expenditures , discretionary cash settlement of class b common unit exchanges under the exchange agreement , acquisitions and related business investments , and other general corporate activities . our capital expenditures typically consist of internally-developed software costs , software purchases and computer hardware purchases . as of june 30 , 2017 and 2016 , we had cash and cash equivalents totaling $ 156.7 million and $ 248.8 million , respectively . as of june 30 , 2017 , there were no marketable securities outstanding , and as of june 30 , 2016 , marketable securities with maturities ranging from three months to five years totaled $ 47.9 million . the marketable securities held at june 30 , 2016 were liquidated in order to help partially fund the equity investment in fff on july 26 , 2016 and the acquisition of acro pharmaceuticals on august 23 , 2016. as of june 30 , 2017 , there were $ 220.0 million outstanding borrowings under the credit facility .
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 Suspicious Activity Report : our business segments our business model and solutions are designed to provide our members access to scale efficiencies , spread the cost of their development , provide actionable intelligence derived from anonymized data in our data warehouse provided by our members , mitigate the risk of innovation and disseminate best practices that will help our member organizations succeed in their transformation to higher quality and more cost-effective healthcare . we deliver our integrated platform of solutions that address the areas of total cost management , quality and safety improvement and population health management through two business segments : supply chain services and performance services . our supply chain services segment includes one of the largest healthcare group purchasing organization programs ( `` gpo `` ) in the united states , serving acute , non-acute , non-healthcare and alternate sites , and includes integrated pharmacy and direct sourcing activities . supply chain services net revenue grew from $ 829.4 million for the year ended june 30 , 2016 to $ 1,101.3 million for the year ended june 30 , 2017 , representing net revenue growth of 33 % , and accounted for 76 % of our overall net revenue . supply chain services net revenue grew from $ 738.3 million for the year ended june 30 , 2015 to $ 829.4 million for the year ended june 30 , 2016 , representing net revenue growth of 12 % , and accounted for 71 % of our overall net revenue . we generate revenue in our supply chain services segment from administrative fees received from suppliers based on the total dollar volume of supplies purchased by our members and through product sales in connection with our integrated pharmacy and direct sourcing activities . our performance services segment includes one of the largest informatics and advisory services businesses in the united states focused on healthcare providers . performance services net revenue grew from $ 333.2 million for the year ended june 30 , 2016 to $ 353.4 million for the year ended june 30 , 2017 , representing revenue growth of 6 % , and accounted for 24 % of our overall net revenue . performance services net revenue grew from $ 268.8 million for the year ended june 30 , 2015 to $ 333.2 million for the year ended june 30 , 2016 , representing net revenue growth of 24 % , and accounted for 29 % of our overall net revenue . our saas informatics products utilize our comprehensive data set to provide actionable intelligence to our members , enabling them to benchmark , analyze and identify areas of improvement across three main categories : cost management , quality and safety and population health management . the performance services segment also includes our technology-enabled performance improvement collaboratives , advisory services , government services and insurance management services . acquisitions acquisition of innovatix and essensa prior to december 2 , 2016 , the company , through its consolidated subsidiary , psci , held 50 % of the membership interests in innovatix . on december 2 , 2016 , the company , through psci , acquired the remaining 50 % ownership interests of innovatix and 48 100 % of the ownership interest in essensa . the purchase price , after adjustments pursuant to the purchase agreement , was $ 336.0 million . the acquisition was funded with borrowings under the company 's credit facility dated june 24 , 2014 , as amended on june 4 , 2015 ( the `` credit facility `` ) . the acquisition provides the sellers an earn-out opportunity of up to $ 43.0 million based on innovatix 's and essensa 's adjusted ebitda ( as defined in the purchase agreement ) for the fiscal year ended june 30 , 2017 . as of june 30 , 2017 , the fair value of the earn-out liability was $ 21.1 million ( see note 5 - fair value measurements ) . innovatix and essensa are gpos focused on serving alternate site health care providers and other non-healthcare organizations throughout the united states . the company reports innovatix and essensa as part of its supply chain services segment . see note 3 - business acquisitions for more information . acquisition of acro pharmaceuticals on august 23 , 2016 , the company , through its consolidated subsidiary , ns3 health , llc , acquired 100 % of the membership interests of acro pharmaceuticals . the aggregate purchase price , after adjustments pursuant to the purchase agreement , was $ 62.9 million . the acquisition was funded with available cash on hand . acro pharmaceuticals is a specialty pharmacy business that provides customized healthcare management solutions to members . the company reports acro pharmaceuticals as part of its supply chain services segment . see note 3 - business acquisitions for more information . acquisition of inflow on october 1 , 2015 , we acquired all of the limited liability company membership interests of inflow , a saas-based software developer specializing in improving the operational , financial and strategic performance of physician practices , for $ 6.1 million in cash . the acquisition provides selling members an earn-out opportunity of up to $ 26.9 million based on inflow 's future annual contractual subscription revenues through december 31 , 2019. the selling members also received restricted stock units of premier with an aggregate equity grant value of $ 2.1 million which vest over a three-year period with restrictions tied to continued employment . we utilized available funds on hand to complete the acquisition . assets acquired and liabilities assumed were recorded at their fair values as of october 1 , 2015 , with the remaining unallocated purchase price recorded as goodwill ( see note 3 - business acquisitions ) . story_separator_special_tag revenue is recognized as these services are provided . product revenue specialty pharmacy revenue is recognized when a product is delivered and is recorded net of the estimated contractual adjustments under agreements with medicare , medicaid and other managed care plans . payments for the products provided under such agreements are based on defined allowable reimbursements rather than on the basis of standard billing rates . the difference between the standard billing rate and allowable reimbursement rate results in contractual adjustments which are recorded as deductions from net revenue . 52 direct sourcing revenue is recognized once the title and risk of loss of medical products have been transferred to members . multiple deliverable arrangements the company enters into agreements where the individual deliverables discussed above , such as saas subscriptions and advisory services , are bundled into a single service arrangement . these agreements are generally provided over a time period ranging from approximately three months to five years after the applicable contract execution date . revenue is allocated to the individual elements within the arrangement based on their relative selling price using vendor specific objective evidence ( `` vsoe `` ) , third-party evidence ( `` tpe `` ) or the estimated selling price ( `` esp `` ) , provided that the total arrangement consideration is fixed and determinable at the inception of the arrangement . the company establishes vsoe , tpe , or esp for each element of a service arrangement based on the price charged for a particular element when it is sold separately in a stand-alone arrangement . all deliverables which are fixed and determinable are recognized according to the revenue recognition methodology described above . certain arrangements include performance targets or other contingent fees that are not fixed and determinable at the inception of the arrangement . if the total arrangement consideration is not fixed and determinable at the inception of the arrangement , the company allocates only that portion of the arrangement that is fixed and determinable to each element . as additional consideration becomes fixed , it is similarly allocated based on vsoe , tpe or esp to each element in the arrangement and recognized in accordance with each element 's revenue recognition policy . performance guarantees on limited occasions , the company enters into agreements which provide for guaranteed performance levels to be achieved by the member over the term of the agreement . in situations with significant performance guarantees , the company defers revenue recognition until the amount is fixed and determinable and all contingencies , including any refund rights , have been satisfied . in the event that guaranteed savings levels are not achieved , the company may have to perform additional services at no additional charge in order to achieve the guaranteed savings or pay the difference between the savings that were guaranteed and the actual achieved savings . deferred revenue deferred revenue consists of unrecognized revenue related to advanced member invoicing or member payments received prior to fulfillment of the company 's revenue recognition criteria . substantially all deferred revenue consists of deferred subscription fees and deferred advisory fees . subscription fees for company-hosted saas applications are deferred until the member 's unique data records have been incorporated into the underlying software database , or until member site-specific software has been implemented and the member has access to the software . deferred advisory fees arise when cash is received from members prior to delivery of service . when the fees are contingent upon meeting a performance target that has not yet been achieved , the advisory fees are deferred until the performance target is met . software development costs costs to develop internal use computer software that are incurred in the preliminary project stage are expensed as incurred . during the development stage , direct consulting costs and payroll and payroll-related costs for employees that are directly associated with each project are capitalized and amortized over the estimated useful life of the software , once it is placed into operation . capitalized costs are amortized on a straight-line basis over the estimated useful lives of the related software applications of up to five years and amortization is included in depreciation and amortization expense . replacements and major improvements are capitalized , while maintenance and repairs are expensed as incurred . some of the more significant estimates and assumptions inherent in this process involve determining the stages of the software development project , the direct costs to capitalize and the estimated useful life of the capitalized software . income taxes the company accounts for income taxes under the asset and liability approach . deferred tax assets or liabilities are determined based on the differences between the financial statement and tax basis of assets and liabilities as measured by the enacted tax rates as well as net operating losses and credit carryforwards , which will be in effect when these differences reverse . the company provides a valuation allowance against net deferred tax assets when , based upon the available evidence , it is more likely than not that the deferred tax assets will not be realized . the company prepares and files tax returns based on interpretations of tax laws and regulations . the company 's tax returns are subject to examination by various taxing authorities in the normal course of business . such examinations may result in future tax and interest assessments by these taxing authorities . 53 in determining the company 's tax expense for financial reporting purposes , the company establishes a reserve for uncertain income tax positions unless it is determined to be `` more likely than not `` that such tax positions would be sustained upon examination , based on their technical merits . that is , for financial reporting purposes , the company only recognizes tax benefits taken on the tax return if it believes it is `` more likely than not `` that such tax positions would be sustained .

