Document and Entity Information - shares	9 Months Ended
Document and Entity Information - shares	Mar. 31, 2019	Apr. 30, 2019
Document and Entity Information
Entity Registrant Name	Presidio, Inc.
Entity Central Index Key	0001631825
Document Type	10-Q
Document Period End Date	Mar. 31, 2019
Amendment Flag	false
Current Fiscal Year End Date	--06-30
Entity Filer Category	Accelerated Filer
Entity Emerging Growth Company	false
Entity Small Business	false
Entity Common Stock, Shares Outstanding		82,759,330
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q3

Consolidated Balance Sheets - USD ($) $ in Millions	Mar. 31, 2019	Jun. 30, 2018
Current Assets
Cash and cash equivalents	$ 29.0	$ 37.0
Accounts receivable, net	600.5	608.7
Unbilled accounts receivable, net	210.2	171.5
Financing receivables, current portion	97.0	88.3
Inventory	27.4	27.7
Prepaid expenses and other current assets	112.8	112.5
Total current assets	1,076.9	1,045.7
Property and equipment, net	36.4	35.9
Financing receivables, less current portion	148.4	116.8
Goodwill	803.7	803.7
Identifiable intangible assets, net	643.8	700.3
Other assets	92.9	33.9
Total assets	2,802.1	2,736.3
Current Liabilities
Current maturities of long-term debt	0.0	0.0
Accounts payable – trade	493.0	457.7
Accounts payable – floor plan	182.4	210.6
Accrued expenses and other current liabilities	255.9	228.2
Discounted financing receivables, current portion	95.1	85.2
Total current liabilities	1,026.4	981.7
Long-term debt, net of debt issuance costs and current maturities	757.7	671.2
Discounted financing receivables, less current portion	138.9	108.6
Deferred income tax liabilities	179.6	180.5
Other liabilities	71.6	34.0
Total liabilities	2,174.2	1,976.0
Commitments and contingencies (Note 11)
Preferred stock:
$0.01 par value; 100 shares authorized and zero shares issued and outstanding at March 31, 2019 and June 30, 2018	0.0	0.0
Common stock:
$0.01 par value; 250,000,000 shares authorized, 82,661,122 shares issued and outstanding at March 31, 2019 and 92,853,983 shares issued and outstanding at June 30, 2018	0.8	0.9
Additional paid-in capital	496.5	644.3
Retained earnings	130.6	115.1
Total stockholders’ equity	627.9	760.3
Total liabilities and stockholders’ equity	$ 2,802.1	$ 2,736.3

Consolidated Balance Sheets (Parentheticals) - $ / shares	Mar. 31, 2019	Jun. 30, 2018
Statement of Financial Position [Abstract]
Preferred stock, par value per share (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized	100	100
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock par value per share (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	250,000,000	250,000,000
Common stock, shares issued	82,661,122	92,853,983
Common stock, shares outstanding	82,661,122	92,853,983

Consolidated Statements of Operations - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Mar. 31, 2019	Mar. 31, 2018
Revenue
Total revenue	$ 705.2	$ 653.4	$ 2,222.9	$ 2,033.9
Cost of revenue
Total cost of revenue	548.5	513.8	1,752.5	1,600.3
Gross margin	156.7	139.6	470.4	433.6
Operating expenses
Selling expenses	79.8	70.5	225.9	201.0
General and administrative expenses	30.3	26.1	87.4	77.8
Transaction costs	4.7	4.2	19.2	6.3
Depreciation and amortization	21.7	20.6	64.6	62.3
Total operating expenses	136.5	121.4	397.1	347.4
Operating income	20.2	18.2	73.3	86.2
Interest and other (income) expense
Interest expense	13.1	10.1	37.4	35.3
Loss on extinguishment of debt	0.5	13.3	1.5	14.8
Other (income) expense, net	(0.3)	(0.1)	(0.4)	(0.3)
Total interest and other (income) expense	13.3	23.3	38.5	49.8
Income (loss) before income taxes	6.9	(5.1)	34.8	36.4
Income tax expense (benefit)	1.9	(5.6)	9.4	(83.3)
Net income	$ 5.0	$ 0.5	$ 25.4	$ 119.7
Earnings per share:
Basic (in dollars per share)	$ 0.06	$ 0.01	$ 0.30	$ 1.31
Diluted (in dollars per share)	$ 0.06	$ 0.01	$ 0.28	$ 1.24
Weighted-average common shares outstanding:
Basic (in shares)	82,551,383	92,015,710	85,263,588	91,629,703
Diluted (in shares)	86,484,348	96,916,782	89,252,594	96,567,883
Common stock, dividends declared (in dollars per share)	$ 0.04	$ 0	$ 0.12	$ 0
Product [Member]
Revenue
Total revenue	$ 574.6	$ 528.8	$ 1,841.4	$ 1,658.5
Cost of revenue
Total cost of revenue	442.9	413.3	1,445.5	1,303.7
Service [Member]
Revenue
Total revenue	130.6	124.6	381.5	375.4
Cost of revenue
Total cost of revenue	$ 105.6	$ 100.5	$ 307.0	$ 296.6

Consolidated Statements of Cash Flows - USD ($) $ in Millions	9 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Cash flows from operating activities:
Net income	$ 25.4	$ 119.7
Adjustments to reconcile net income to net cash provided by operating activities
Amortization of intangible assets	56.4	55.5
Depreciation of property and equipment in operating expenses	8.2	6.7
Provision for sales returns and credit losses	1.3	1.5
Amortization of debt issuance costs	2.7	3.6
Loss on extinguishment of debt	1.5	14.8
Noncash lease income	(5.8)	(2.2)
Share-based compensation expense	6.9	5.6
Deferred income tax benefit	(0.9)	(87.8)
Other	0.1	0.2
Change in assets and liabilities, net of acquisitions and dispositions:
Unbilled and accounts receivable	(30.9)	9.6
Inventory	0.3	1.0
Prepaid expenses and other assets	(59.7)	(28.4)
Accounts payable – trade	35.3	74.5
Accrued expenses and other liabilities	62.3	(36.0)
Net cash provided by operating activities	106.6	142.7
Cash flows from investing activities:
Acquisition of businesses, net of cash and cash equivalents acquired	0.0	(9.5)
ProceedsFromEscrowInAcquisitionOfBusiness	0.0	0.2
Additions of equipment under sales-type and direct financing leases	(122.8)	(80.6)
Proceeds from collection of financing receivables	6.8	3.0
Additions to equipment under operating leases	(0.3)	(1.5)
Proceeds from disposition of equipment under operating leases	0.6	0.7
Purchases of property and equipment	(11.3)	(10.5)
Net cash used in investing activities	(127.0)	(98.2)
Cash flows from financing activities:
Proceeds from issuance of common stock under share-based compensation plans	3.8	5.9
Payments for Repurchase of Common Stock	(158.6)	0.0
Payments of Ordinary Dividends, Common Stock	6.6	0.0
Proceeds from the discounting of financing receivables	141.4	81.5
Retirements of discounted financing receivables	(21.6)	(5.7)
Deferred financing costs	(0.8)	(1.2)
Repayments of Subordinated Debt	0.0	135.7
Borrowings of term loans, net of original issue discount	158.1	138.2
Repayments of term loans	(75.0)	(75.0)
Net change in accounts payable — floor plan	(28.3)	(55.1)
Net cash provided by (used in) financing activities	12.4	(47.1)
Net decrease in cash and cash equivalents	(8.0)	(2.6)
Beginning of the period	37.0	27.5
End of the period	29.0	24.9
Cash paid during the period for:
Interest	32.3	36.0
Income Taxes Paid, Net	15.9	29.9
Reduction Of Discounted Lease Assets And Liabilities	87.1	80.2
Product [Member]
Adjustments to reconcile net income to net cash provided by operating activities
Cost, Depreciation	$ 3.5	$ 4.4

Consolidated Statements of Stockholders' Equity - USD ($) $ in Millions	Total	Preferred stock	Common stock	Additional paid-in capital	Retained earnings
Beginning balance at Jun. 30, 2017	$ 607.4	$ 0.0	$ 0.9	$ 625.3	$ (18.8)
Beginning balance (shares) at Jun. 30, 2017		0	90,969,919
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Common stock issued under share-based compensation plans	5.9		$ 0.0	5.9
Common stock issued under share-based compensation plans (shares)			1,268,890
Net income	119.7				119.7
Share-based compensation expense	5.6			5.6
Ending balance at Mar. 31, 2018	738.6	$ 0.0	$ 0.9	636.8	100.9
Ending balance (shares) at Mar. 31, 2018		0	92,238,809
Beginning balance at Dec. 31, 2017	733.6	$ 0.0	$ 0.9	632.3	100.4
Beginning balance (shares) at Dec. 31, 2017		0	91,821,644
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Common stock issued under share-based compensation plans	1.5		$ 0.0	1.5
Common stock issued under share-based compensation plans (shares)			417,165
Common stock cash dividend declared	(3.0)
Net income	0.5				0.5
Share-based compensation expense				3.0
Ending balance at Mar. 31, 2018	738.6	$ 0.0	$ 0.9	636.8	100.9
Ending balance (shares) at Mar. 31, 2018		0	92,238,809
Beginning balance at Jun. 30, 2018	760.3	$ 0.0	$ 0.9	644.3	115.1
Beginning balance (shares) at Jun. 30, 2018		0	92,853,983
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Common stock issued under share-based compensation plans	3.8		$ 0.0	3.8
Common stock issued under share-based compensation plans (shares)			557,139
Common stock repurchased			10,750,000
Common stock repurchased	158.6		$ 0.1	158.5
Common stock cash dividend declared	(9.9)				(9.9)
Net income	25.4				25.4
Share-based compensation expense	6.9			6.9
Ending balance at Mar. 31, 2019	627.9	$ 0.0	$ 0.8	496.5	130.6
Ending balance (shares) at Mar. 31, 2019		0	82,661,122
Beginning balance at Dec. 31, 2018	621.7	$ 0.0	$ 0.8	492.0	128.9
Beginning balance (shares) at Dec. 31, 2018		0	82,338,143
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Common stock issued under share-based compensation plans	2.2		$ 0.0	2.2
Common stock issued under share-based compensation plans (shares)			322,979
Common stock cash dividend declared	(3.3)				(3.3)
Net income	5.0				5.0
Share-based compensation expense	2.3			2.3
Ending balance at Mar. 31, 2019	$ 627.9	$ 0.0	$ 0.8	$ 496.5	$ 130.6
Ending balance (shares) at Mar. 31, 2019		0	82,661,122

Nature of Business and Significant Accounting Policies

9 Months Ended

Mar. 31, 2019

Accounting Policies [Abstract]

Nature of Business and Significant Accounting Policies

Description of the Company

Presidio, Inc., a Delaware corporation, through its subsidiaries (collectively, the “Company”, “we” and “our”) is a leading provider of information technology (“IT”) solutions to its clients in North America. We enable business transformation through our expertise in IT solutions for agile, secure infrastructure solution sets, with a specific focus on Digital Infrastructure, Cloud and Security solutions. Our solutions are delivered through a broad suite of professional services, including strategy, consulting, design and implementation. We complement our professional services with project management, technology acquisition, managed services, maintenance and support to offer a full lifecycle model. Our services-led, lifecycle model leads to ongoing client engagement.

The Company is headquartered in New York, New York and all of its direct and indirect subsidiaries are located in the United States.

Public Offerings

On March 15, 2019, the Company completed a secondary public offering of 5,000,000 shares of the Company’s common stock by certain of its stockholders, including AP VIII Aegis Holdings, L.P. (“Aegis LP”), an affiliate of investment funds managed by affiliates of Apollo Global Management, LLC at a price to the public of $15.25 per share. The Company did not sell any shares and did not receive any proceeds from the offering. In conjunction with this secondary offering, the Company incurred $0.2 million of expenses, which is presented within transaction costs on the consolidated statement of operations for the three and nine months ended March 31, 2019.

On February 12, 2019, the Company completed a secondary public offering of 4,000,000 shares of the Company’s common stock by Aegis LP at a price of $15.11 per share. The Company did not sell any shares and did not receive any proceeds from the offering. In conjunction with this secondary offering, the Company incurred $0.1 million of expenses, which is presented within transaction costs on the consolidated statement of operations for the three and nine months ended March 31, 2019.

As a result of the completion of this secondary offering, Aegis LP no longer controls a majority of our common stock and the Company therefore no longer qualifies as a “controlled company” within the meaning of the NASDAQ corporate governance requirements. The NASDAQ rules require that we appoint a majority of independent directors to our Board of Directors within one year of the completion of the secondary offering. As required by the NASDAQ rules, we appointed one independent member to each of our compensation and nominating and corporate governance committees prior to the completion of the secondary offering on February 12, 2019, and then reconstituted the committees on May 6, 2019 so that they are each comprised of a majority of independent members. The NASDAQ rules require that we appoint compensation and nominating and corporate governance committees composed entirely of independent directors within one year of the completion of the secondary offering. During these transition periods, we may elect not to comply with certain NASDAQ corporate governance requirements as permitted by the NASDAQ rules.

On September 20, 2018, the Company completed a secondary public offering of 3,000,000 shares of the Company’s common stock by Aegis LP at a price of $15.24 per share. The Company did not sell any shares and did not receive any proceeds from the offering. In conjunction with this secondary offering, the Company incurred $0.3 million of expenses, which is presented within transaction costs on the consolidated statement of operations for the nine months ended March, 31 2019.

Share Repurchase

On September 6, 2018, the Company, entered into a stock repurchase agreement (the “Stock Repurchase Agreement”) with Aegis LP. Pursuant to the Stock Repurchase Agreement, the Company agreed to repurchase 10,750,000 shares of our common stock from Aegis LP for aggregate consideration of $158.6 million, representing a purchase price of $14.75 per share of common stock (the “Repurchase”). The Stock Repurchase Agreement, the Repurchase and the related transactions were approved by the Company’s Board of Directors and a committee of independent directors. On September 13, 2018, the Repurchase was completed using the net proceeds of $160 million of incremental term loans that were issued on terms substantially identical to the then existing term loans outstanding under our credit agreement (except with respect to issue price).

Dividend

On May 8, 2019, the Company declared a quarterly cash dividend of $0.04 per share of common stock. The dividend is payable on July 5, 2019 to stockholders of record as of the close of business on June 26, 2019.

Basis of Presentation

The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and Securities and Exchange Commission ("SEC") rules and regulations for interim reporting periods. The consolidated financial statements do not include all disclosures normally made in annual financial statements. These consolidated financial statements should be read in conjunction with the audited consolidated financial statements included within the Company's Annual Report on Form 10-K for the fiscal year ended June 30, 2018. All financial information presented in the financial statements and notes herein is presented in millions except for share and per-share information and percentages.

In management’s opinion, all adjustments necessary for a fair presentation of the results of operations, financial position and cash flows for the periods shown have been made. All other adjustments are of a normal recurring nature.

The Company has evaluated subsequent events through the issue date of these consolidated financial statements.

Revenue Recognition

The Company’s revenue is generally derived from the sale of IT solutions to customers. The solutions we sell include products manufactured by third-parties including IT hardware equipment, software and support service contracts, as well as, services that are delivered directly by the Company or via third-party providers. The Company’s sales of IT solutions to customers are recognized in accordance with Accounting Standards Codification (“ASC”) Topic 606, Revenue from Contracts with Customers, which was adopted on July 1, 2018.

Under ASC 606, the Company recognizes revenue when it has a contract with a customer and when, or as, it satisfies the performance obligations in the arrangement. Revenue for each performance obligation is recognized either at a point in time or over a period of time in a manner that depicts the transfer of control of the goods or services to the customer at an amount that reflects the consideration that the Company expects to be entitled to in exchange for those goods or services, net of sales taxes collected from customers, which are subsequently remitted to governmental entities. Such recognition requires the Company to use its judgment in accordance with ASC 606 and other applicable rules.

The Company has a contract with a customer when there is an agreement that creates legally enforceable rights and obligations that includes: the approval of the parties to the contract, the identification of each party’s rights regarding the goods or services to be transferred, the establishment of payment terms for the goods or services to be transferred, the existence of commercial substance of the contract and the determination that it is probable that the Company will collect substantially all of the consideration to which it will be entitled in the arrangement. Generally, the Company determines it has a legally enforceable contract with the customer when it has a valid purchase order from the customer or it has a confirmatory customer approval of a quote, statement of work, or other binding agreement that individually, or in combination with other arrangements with the customer, satisfies the criteria above.

As a provider of third-party products and services, the Company must assess whether it has promised to provide the customer the specific goods or services itself (as a principal) in which case revenue is recognized on a gross basis, or to arrange for those specified goods and services to be provided by another party (as an agent) in which revenue is recognized on a net basis. In applying the principal versus agent accounting guidance, the Company considers several factors and indicators including an assessment of the Company’s role in fulfilling the promise to provide the specific goods or services, the Company’s inventory risk before or after the goods and services are transferred to the customer and the Company’s discretion in establishing prices for the specified goods or services. The Company may be a principal in the fulfillment of some goods and services and an agent for other goods and services within the same contract.

The Company’s solutions may consist of a combination of performance obligations including third-party products along with services delivered by the Company and/or third-parties. Contracts that contain multiple performance obligations may have revenue recognized at different times or over different periods of time as discussed in the policies below. For contracts that contain multiple performance obligations, the total transaction price of the contract is allocated to the separate performance obligations based on each performance obligation’s relative standalone selling price. To determine standalone selling prices of the Company’s performance obligations, the Company generally applies a cost-plus margin approach to determine a range of reasonable prices for each performance obligation.

When a contract includes variable consideration such as usage-based or user-based fees, service level agreements, or volume-based pricing, the Company estimates the amount which the Company believes it will be entitled in exchange for transferring the promised goods or services to the customer. The Company uses either the expected value method or the most likely amount method to estimate variable consideration based on the facts and circumstances in each contract. The Company updates its estimates as facts and circumstances change throughout the contract.

Revenue for each performance obligation is recognized as control of the performance obligation is transferred to the customer. For performance obligations satisfied at a point in time, the Company determines when control has been transferred based on an evaluation of the following indicators: the Company has a present right to payment, the customer has legal title, the Company has transferred physical possession, the customer has the significant risk and rewards of ownership and the customer has accepted the assets. For performance obligations satisfied over a period of time, the Company recognizes revenue using an appropriate method to estimate the progress toward complete satisfaction of the performance obligation.

The Company generally does not provide customers with payment terms that would result in the existence of a significant financing component within the transaction price.

Revenue for hardware and general software - Revenue from the sale of third-party hardware and general software products is recognized on a gross basis with the associated transaction price recorded as product revenue and the acquisition cost of the product recorded as cost of product revenue, net of vendor rebates. Hardware and general software can be delivered to customers in a variety of ways including drop-shipped by the vendor or supplier, or shipped through one of the Company’s staging warehouses or via electronic delivery for general software licenses.

Regardless of the delivery method, revenue from the sale of hardware is recognized at a point in time based on the shipping terms specified in the contract which is when title and the risk of loss are passed to the customer. Our standard shipping terms are freight on board (“FOB”) origin and accordingly, we generally recognize revenue when product ships from our vendor or supplier. In transactions where the shipping terms are FOB destination, revenue is recognized when the promised hardware is delivered to the customer’s specified location.

For general software that is pre-installed on hardware products, revenue is recognized at a point in time based on the shipping terms specified in the contract; while general software that is delivered to the customer via electronic download is recognized at a point in time when the information the customer needs to download and install the software has been provided to the customer.

Revenue for software as a service (“SaaS”), enterprise license agreements (“ELAs”) or software sold with critical software assurance - In certain software arrangements, we recognize the related revenue on a net basis, with product revenue being equal to the gross margin on the transaction. Third-party software products that are recognized on a net basis include: SaaS to customers whereby the customer receives the right to access software directly from the vendor; ELAs that provide customers with access to manage their software license needs; and software that is accompanied by third-party delivered software assurance that is deemed to be critical or essential to the core functionality of the software license. As we are under no obligation to perform additional services, such as post-customer support or upgrades, revenue is recognized at a point in time as opposed to over the life of the software license. Revenue from these software products is recognized on a net basis at a point in time when the Company has satisfied its agency obligation which is generally when the Company has arranged for the delivery of the software from the third-party to the customer.

Revenue for third-party support service contracts - Revenue from the sale of third-party support service contracts is recognized on a net basis, with product revenue being equal to the gross margin on the transaction. As we are under no obligation to perform additional services, revenue is recognized at a point in time as opposed to over the life of the third-party support

agreement. Revenue is recognized at a point in time when the Company has satisfied its agency obligation which is generally when the Company has arranged for the support service contract on the customer’s behalf with the third-party.

Revenue for professional services - Revenue from professional services is recognized over a period of time as the services are performed and recorded as service revenue with the associated cost recorded as service cost of revenue. For time and material contracts, where the Company has the right to invoice for work performed as completed, the Company recognizes revenue using the “right to invoice” practical expedient as the amount that can be invoiced directly corresponds with satisfaction of the performance obligation. For time and material contracts and fixed priced contracts where invoicing is linked to the achievement of milestones, the Company uses an input based percentage of completion method based on labor hours completed compared to the total estimated hours for the scope of work with revenue accrued or deferred as appropriate. Management bases its estimates on the scope of work being performed, our historical experience performing similar work and the risks and uncertainties surrounding that work. These estimates are adjusted throughout the performance of the contract as work is completed.

Revenue for managed services - Revenue from managed services are recognized over a period of time using a time-lapsed method and recorded as service revenue with the associated cost recorded as service cost of revenue. The Company’s managed services are considered to be a series of distinct services due to the services performed being either repetitive on a recurring basis or for being a stand-ready obligation and accordingly are accounted for as a single performance obligation. Accordingly, the Company believes that using a time-based method for recognition is the most appropriate as the services are satisfied evenly over the stated period of performance.

Sales returns and credit losses

A customer’s ability to return goods and services is considered a form of variable consideration. The Company maintains an estimate for sales returns at the most likely amount based on historical experience. The Company also maintains an estimate for credit losses for uncollectible accounts which is based on historical experience.

Warranties

Our vendor partners provide warranties to our customers on equipment sold and, as such, we have not estimated a warranty reserve or deferred revenue for potential warranty work. These manufacturer warranties are assurance-type warranties that ensure that products will conform to manufacturer’s specifications and are not considered separate performance obligations. Extended warranties sold separately by manufacturers are considered to be separate performance obligations and are accounted for as third-party support service contracts described above.

Contract assets and liabilities

Revenue recognized in excess of the amount the Company has invoiced the customer is recorded as unbilled receivables or other assets on the consolidated balance sheet. Unbilled receivables are primarily comprised of professional services with milestone invoicing and contracts with bill in-full invoicing provisions.

Payments received from customers in advance of transferring goods or services to customers is recorded as unearned revenue within accrued and other current liabilities or other liabilities on the consolidated balance sheet. Unearned revenue is primarily comprised of payments for professional and managed services which are being provided over a period of time.

Freight

The Company considers freight billed to its customers as part of the transaction price in the arrangement which is allocated to the product performance obligations in the arrangement. Freight costs are recorded as a cost of product revenue. The Company does not consider shipping to be a separate performance obligation.

Contract costs

Generally, the only incremental costs of obtaining a contract that the Company incurs are sales commissions paid to our employees. The Company’s sales commission structures are complex and a majority of our sales commission are based on substantive operating metrics in addition to obtaining the contract. Sales commissions that are solely associated with obtaining a contract are capitalized when the amortization period would be one-year or greater; which primarily occurs in sales commissions

paid on our managed services contracts. Capitalized sales commissions are amortized over the period they are expected to contribute directly or indirectly to future cash flows. Sales commissions paid on new managed services arrangements are amortized over a period that includes anticipated renewals while sales commissions paid on renewal services are amortized over the contract period.

The Company may incur costs to fulfill a contract associated with our professional or managed services, including, but not limited to, turn-up services, purchasing support service contracts and software licenses. These costs are initially deferred as prepaid expenses or other assets and expensed over the period that services are being provided.

Principles of Consolidation

The Company’s consolidated financial statements include the accounts of Presidio, Inc. and its subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation.

Use of Estimates

The preparation of the Company’s consolidated financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and reported amounts of revenue and expenses during the reporting period. Estimates are used when accounting for items and matters including, but not limited to, revenue recognition, asset residual values, vendor rebates and consideration, goodwill, identifiable intangibles, measurement of income tax assets and liabilities and provisions for doubtful accounts, credit losses, inventory obsolescence, and other contingencies. Actual results could differ from management’s estimates.

Other Comprehensive Income

The Company did not have any components of other comprehensive income for any of the periods presented.

Recent Accounting Pronouncements Adopted

In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606), along with subsequent clarifying ASUs, which outline a single, comprehensive model for accounting for revenue from contracts with customers. Under the standard, revenue is to be recognized upon the transfer of promised goods or services to a customer, in an amount that reflects the consideration the entity expects to receive in exchange for those goods or services. In addition, the standard requires disclosure of the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. See “Revenue Recognition” above for additional information regarding the Company's revenue recognition policies.

On July 1, 2018, the Company adopted ASC 606 utilizing the full retrospective method. The adoption of ASC 606 impacted the Company's results as follows (in millions, except per-share data):



	Three months ended March 31, 2018									Nine months ended March 31, 2018
	As Reported			ASU 2014-09 Adjustment			As Adjusted			As Reported			ASU 2014-09 Adjustment			As Adjusted
Revenue
Product	$	545.2		$	(16.4	)	$	528.8		$	1,714.1		$	(55.6	)	$	1,658.5
Service	119.9			4.7			124.6			377.6			(2.2		)	375.4
Total revenue	665.1			(11.7		)	653.4			2,091.7			(57.8		)	2,033.9
Cost of revenue
Product	429.7			(16.4		)	413.3			1,359.3			(55.6		)	1,303.7
Service	96.0			4.5			100.5			299.2			(2.6		)	296.6
Total cost of revenue	525.7			(11.9		)	513.8			1,658.5			(58.2		)	1,600.3
Gross margin	$	139.4		$	0.2		$	139.6		$	433.2		$	0.4		$	433.6

Selling expenses	$	70.2		$	0.3		$	70.5		$	201.0		$	—		$	201.0

Operating income	$	18.3		$	(0.1	)	$	18.2		$	85.8		$	0.4		$	86.2
Income tax benefit	$	(5.6	)	$	—		$	(5.6	)	$	(83.5	)	$	0.2		$	(83.3	)
Net income	$	0.6		$	(0.1	)	$	0.5		$	119.5		$	0.2		$	119.7

Earnings per share:
Basic	$	0.01		$	—		$	0.01		$	1.30		$	0.01		$	1.31
Diluted	$	0.01		$	—		$	0.01		$	1.24		$	—		$	1.24



	As of June 30, 2018
	As Reported		ASU 2014-09 Adjustment			As Adjusted
Accounts receivable, net	$	613.3	$	(4.6	)	$	608.7
Unbilled accounts receivable, net	$	156.7	$	14.8		$	171.5
Prepaid expenses and other current assets	$	80.7	$	31.8		$	112.5
Total assets	$	2,694.3	$	42.0		$	2,736.3

Accrued expenses and other current liabilities	$	193.2	$	35.0		$	228.2
Deferred income tax liabilities	$	177.7	$	2.8		$	180.5
Total liabilities	$	1,938.2	$	37.8		$	1,976.0

Retained earnings	$	110.9	$	4.2		$	115.1
Total stockholders’ equity	$	756.1	$	4.2		$	760.3
Total liabilities and stockholders’ equity	$	2,694.3	$	42.0		$	2,736.3

The adoption of ASC 606 impacted net income, as noted above, as well as elements of working capital. Total cash flows from operating activities, investing activities and financing activities remained unchanged for the nine months ended March 31, 2018.

Recent Accounting Pronouncements Not Yet Adopted

The Company is still evaluating the impact of the following additional accounting pronouncements not yet adopted as of March 31, 2019.

In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which changes the accounting for leases in order to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. The standard has an effective date for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years, with early adoption permitted. ASC 842 is effective for the Company beginning July 1, 2019 and the Company is currently evaluating the impact that the standard will have on the consolidated financial statements.

The Company has formed an implementation committee to evaluate the impact of this standard, and the Company's analysis of the new standard will continue through the standard's effective date. The implementation committee is in the process of determining completeness of the Company’s lease portfolio and interpreting the policy elections provisioned by the standard. In addition, the Company is currently in the process of implementing appropriate changes to its business processes, systems and controls to support recognition and disclosure under the standard. The adoption of the standard is not expected to have a material impact on the Company’s leasing business from a lessor perspective. Furthermore, we expect the adoption of the standard to impact the Company’s balance sheet through the recognition of right-of-use assets and lease obligation liabilities; with the vast majority of these balances related to operating leases for our offices and warehouses. The Company does not expect the standard to materially impact the consolidated statement of operations or the consolidated statement of cash flows.

In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326), which changes the current incurred loss impairment methodology with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information. This standard requires a modified-retrospective adoption approach and has an effective date for fiscal years beginning after December 15, 2019. The Company does not believe this standard will have a material impact on the consolidated financial statements.

In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging (Topic 815), which changes the accounting for derivatives and hedging to better align an entity's risk management activities and financial reporting for hedging relationships through changes to both the designation and measurement guidance for qualifying hedging relationships and the presentation of hedge results. The standard has an effective date for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years, with early adoption permitted. The Company does not believe this standard will have a material impact on the consolidated financial statements.

In October 2018, the FASB issued ASU 2018-16, Derivatives and Hedging (Topic 815), which provides guidance on the eligible benchmark interest rates. The amendments in this ASU permit the use of the Overnight Index Swap (“OIS”) rate based on the Secured Overnight Financing Rate (“SOFR”) as the benchmark interest rate for hedge accounting purposes under Topic 815, in addition to the Treasury obligations of the U.S. government (“UST”), the LIBOR swap rate, the OIS rate based on the Fed Funds Effective Rate and the Securities Industry and Financial Markets Association (“SIFMA”) Municipal Swap Rate. The amendments in this Update are required to be adopted concurrently with the amendments in ASU 2017-12. The Company does not believe this standard will have a material impact on the consolidated financial statements.

Revenue Recognition (Notes)

9 Months Ended

Mar. 31, 2019

Revenue from Contract with Customer [Abstract]

Revenue from Contract with Customer [Text Block]

Revenue Recognition

Contract Assets and Liabilities – Contract assets consist of revenue recognized in excess of the amount the Company has the right to invoice a customer. Contract assets primarily relate to the Company's current and long-term unbilled receivables. As of March 31, 2019 and June 30, 2018, the current unbilled receivables balance was $210.2 million and $171.5 million, respectively. As of March 31, 2019 and June 30, 2018, the long-term unbilled receivables balance was $56.9 million and $28.3 million, respectively.

Contract liabilities consist of payments received from customers, or such consideration that is contractually due, in advance of transferring goods or services. Contract liabilities primarily relate to the Company's current and long-term unearned revenue. As of March 31, 2019 and June 30, 2018, the current unearned revenue balance was $62.1 million and $73.0 million, respectively. As of March 31, 2019 and June 30, 2018, the long-term unearned revenue balance was $17.1 million and $3.8 million, respectively. During the nine months ended March 31, 2019, the Company recognized $52.6 million of revenue related to its contract liabilities.

For contracts greater than one year, the table below discloses the aggregate amount of the transaction price allocated to performance obligations that are unsatisfied (or partially unsatisfied) as of March 31, 2019 and when the Company expects to recognize this revenue, by fiscal year. These performance obligations primarily relate to managed service and public cloud contracts.



(in millions)	Years ending June 30,
2019 (remaining three months)	$	40.3
2020	134.0
2021	103.7
2022	34.5
2023	11.7
2024 and thereafter	7.0
Total	$	331.2

Disaggregation of revenue

Refer to Note 16 for additional information detailing disaggregation of revenue for the three and nine months ended March 31, 2019 and 2018.

Financing Receivables and Operating Leases

9 Months Ended

Mar. 31, 2019

Leases [Abstract]

Financing Receivables and Operating Leases

The Company records the lease receivables related to sales-type or direct financing leases as financing receivables, and the related liability resulting from discounting customer payment streams as discounted financing receivables, in the Company’s consolidated balance sheets. Discounted customer payment streams are typically collateralized by a security interest in the underlying assets being leased.

Financing receivables – The assets and related liabilities for discounted and not discounted sales-type and direct financing leases to financial institutions were as follows as of June 30, 2018 (in millions):



	Discounted to financial institutions			Not discounted to financial institutions			Total
Financing receivables:
Minimum lease payments	$	207.5		$	2.7		$	210.2
Estimated net residual values	—			7.6			7.6
Unearned income	(11.4		)	(0.9		)	(12.3		)
Provision for credit losses	—			(0.4		)	(0.4		)
Total, net	$	196.1		$	9.0		$	205.1
Reported as:
Current	$	85.4		$	2.9		$	88.3
Long-term	110.7			6.1			116.8
Total, net	$	196.1		$	9.0		$	205.1
Discounted financing receivables:
Nonrecourse	$	192.6		$	—		$	192.6
Recourse	—			—			—
Total	$	192.6		$	—		$	192.6
Reported as:
Current	$	84.5		$	—		$	84.5
Long-term	108.1			—			108.1
Total	$	192.6		$	—		$	192.6

The assets and related liabilities for discounted and not discounted sales-type and direct financing leases to financial institutions were as follows as of March 31, 2019 (in millions):



	Discounted to financial institutions			Not discounted to financial institutions			Total
Financing receivables:
Minimum lease payments	$	252.9		$	3.0		$	255.9
Estimated net residual values	—			6.2			6.2
Unearned income	(15.5		)	(0.9		)	(16.4		)
Provision for credit losses	—			(0.3		)	(0.3		)
Total, net	$	237.4		$	8.0		$	245.4
Reported as:
Current	$	95.4		$	1.6		$	97.0
Long-term	142.0			6.4			148.4
Total, net	$	237.4		$	8.0		$	245.4
Discounted financing receivables:
Nonrecourse	$	233.1		$	—		$	233.1
Recourse	—			—			—
Total	$	233.1		$	—		$	233.1
Reported as:
Current	$	94.6		$	—		$	94.6
Long-term	138.5			—			138.5
Total	$	233.1		$	—		$	233.1

The discounted financing receivables associated with sales-type and direct financing type leases are presented in the consolidated balance sheets together with the discounted financing receivables associated with operating leases which is discussed below.

Operating leases – Equipment under operating leases and accumulated depreciation are reported as part of other assets in the consolidated balance sheets and were as follows (in millions):



	June 30, 2018			March 31, 2019
Equipment under operating leases	$	3.4		$	2.1
Accumulated depreciation	(1.9		)	(0.9		)
Total equipment under operating leases, net	$	1.5		$	1.2

Depreciation expense associated with equipment under operating leases that is included in cost of product revenue within the Company’s consolidated statements of operations was $0.3 million and $0.4 million for the three months ended March 31, 2019 and 2018, respectively, and $0.9 million and $1.0 million for the nine months ended March 31, 2019 and 2018, respectively.

Liabilities for discounted operating leases to financial institutions were as follows (in millions):



	June 30, 2018		March 31, 2019
Discounted operating leases:
Current	$	0.7	$	0.5
Noncurrent	0.5		0.3
Total	$	1.2	$	0.8

The discounted financing receivables associated with operating leases are presented on the consolidated balance sheets together with the discounted financing receivables associated with sales-type and direct financing type leases which are discussed above.

Property and Equipment

9 Months Ended

Mar. 31, 2019

Property, Plant and Equipment [Abstract]

Property and Equipment

Property and equipment and accumulated depreciation and amortization were as follows (in millions):



	Estimated useful lives	June 30, 2018			March 31, 2019
Furniture and fixtures	3 to 7 years	$	8.4		$	8.5
Equipment	3 to 7 years	28.5			31.9
Software	3 to 5 years	24.4			27.5
Leasehold improvements	Life of lease	16.4			19.0
Total property and equipment		77.7			86.9
Accumulated depreciation and amortization		(41.8		)	(50.5		)
Total property and equipment, net		$	35.9		$	36.4

Depreciation and amortization associated with property and equipment that is included in depreciation and amortization within the Company’s consolidated statements of operations was $2.9 million and $2.3 million for the three months ended March 31, 2019 and 2018, respectively, and $8.2 million and $6.7 million for the nine months ended March 31, 2019 and 2018, respectively.

Depreciation and amortization expense associated with property and equipment directly utilized in support of managed services and cloud services that is included in cost of service revenue within the Company’s consolidated statements of operations was $0.8 million and $1.2 million for the three months ended March 31, 2019 and 2018, respectively, and $2.6 million and $3.4 million for the nine months ended March 31, 2019 and 2018, respectively.

Goodwill and Identifiable Intangible Assets

9 Months Ended

Mar. 31, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Identifiable Intangible Assets

Goodwill

From June 30, 2018 through the date of the consolidated financial statements, no significant events have occurred that would lead us to believe that goodwill was more likely than not impaired.

Identifiable Intangible Assets

Identifiable intangible assets consisted of the following as of June 30, 2018 (in millions):



	Range of life (years)	Gross amount		Accumulated amortization			Total, net
Finite-lived intangible assets:
Customer relationships	5 – 10	$	724.2	$	(231.4	)	$	492.8
Developed technology	5	3.6		(2.3		)	1.3
Trade names	2	1.8		(0.6		)	1.2
Indefinite-lived intangible assets:
Trade names	Indefinite	205.0		—			205.0
Total intangible assets		$	934.6	$	(234.3	)	$	700.3

Identifiable intangible assets consisted of the following as of March 31, 2019 (in millions):



	Range of life (years)	Gross amount		Accumulated amortization			Total, net
Finite-lived intangible assets:
Customer relationships	5 – 10	$	724.2	$	(286.6	)	$	437.6
Developed technology	5	3.6		(2.8		)	0.8
Trade names	2	1.3		(0.9		)	0.4
Indefinite-lived intangible assets:
Trade names	Indefinite	205.0		—			205.0
Total intangible assets		$	934.1	$	(290.3	)	$	643.8

Amortization associated with intangible assets was $18.8 million and $18.3 million for the three months ended March 31, 2019 and 2018, respectively, and $56.4 million and $55.5 million for the nine months ended March 31, 2019 and 2018, respectively. The weighted-average remaining useful life of the finite-lived intangible assets was 5.9 years and 6.6 years as of March 31, 2019 and June 30, 2018, respectively.

Based on the finite-lived intangible assets recorded at March 31, 2019, the future amortization expense is expected to be as follows (in millions):



	Years ending June 30,
2019 (remaining three months)	$	18.8
2020	74.3
2021	73.6
2022	73.5
2023	72.9
2024 and thereafter	125.7
Total	$	438.8

Accounts Payable - Floor Plan

9 Months Ended

Mar. 31, 2019

Line of Credit Facility [Abstract]

Accounts Payable - Floor Plan

Accounts Payable – Floor Plan

The accounts payable – floor plan balances on the consolidated balance sheets relate to an agreement with a financial institution that provides an indirect wholly-owned subsidiary of the Company with funding for discretionary inventory purchases from approved vendors. Payables are due within 90 days and are noninterest bearing, provided they are paid when due. In accordance with the agreement, the financial institution has been granted a senior security interest in the indirect wholly-owned subsidiary’s inventory purchased under the agreement and accounts receivable arising from the sale thereof. Payments on the facility are guaranteed by Presidio LLC and subsidiaries. As of March 31, 2019 and June 30, 2018, the aggregate availability for purchases under the floor plan was the lesser of $325.0 million or the liquidation value of the pledged assets. The balances outstanding under the accounts payable - floor plan facility were $182.4 million and $210.6 million as of March 31, 2019 and June 30, 2018, respectively.Long-Term Debt and Credit Agreements

Long-term debt consisted of the following (in millions):



	June 30, 2018			March 31, 2019
Revolving credit facility	$	—		$	—
Receivables securitization facility	—			—
Term loan facility, due February 2024	686.6			771.6
Total long-term debt	686.6			771.6
Unamortized debt issuance costs	(15.4		)	(13.9		)
Total long-term debt, net of debt issuance costs	$	671.2		$	757.7
Reported as:
Current	$	—		$	—
Long-term	671.2			757.7
Total long-term debt, net of debt issuance costs	$	671.2		$	757.7

Receivables Securitization Facility

As of March 31, 2019 and June 30, 2018, there were no outstanding borrowings under the receivables securitization facility. The Company had $250.0 million available under the receivables securitization facility based on the collateral available as of March 31, 2019.

Credit Agreement

On March 29, 2019, Presidio LLC and Presidio Networked Solutions LLC (together, the “Borrowers”), subsidiaries of Presidio, Inc., entered into an Incremental Assumption Agreement and Amendment No. 8 (the “Eighth Amendment”) amending the Credit Agreement, dated as of February 2, 2015 (as in effect from time to time, the “Credit Agreement”), by and among the Borrowers, the guarantors party thereto, the lenders party thereto and Credit Suisse AG, Cayman Islands Branch, as administrative agent. Pursuant to the Eighth Amendment, the Borrowers $50.0 million of existing revolving facility commitments (the “Existing Revolving Facility Commitments”) were replaced with $50.0 million of new revolving facility commitments (the “New Revolving Facility Commitments”), having substantially similar terms as the Existing Revolving Facility Commitments, except with respect to the interest rate and maturity date. The interest rate applicable to the New Revolving Facility Commitments was reduced to 2.75% from 4.25% in the case of LIBOR loans, and 1.75% from 3.25% in the case of base rate loans. The New Revolving Facility Commitments will mature on August 2, 2023, approximately 3.5 years later than the February 2, 2020 maturity date that was applicable to the Existing Revolving Facility Commitments.

As of March 31, 2019 and June 30, 2018, there were no borrowings outstanding under the Company's revolving credit facility and $1.4 million and $1.8 million in letters of credit outstanding under the Credit Agreement, respectively. As of March 31, 2019, the Company was in compliance with the covenants in its Credit Agreement and had $48.6 million available for revolver borrowings thereunder.

As of March 31, 2019, there were $771.6 million of Term Loans outstanding under the Credit Agreement. During the nine months ended March 31, 2019, the Company made aggregate voluntary prepayments of $75.0 million on the term loan facility under the Credit Agreement, resulting in a $1.5 million loss on extinguishment of debt in the Company’s consolidated statements of operations associated with the write-off of debt issuance costs.

Long-Term Debt and Credit Agreements

9 Months Ended

Mar. 31, 2019

Debt Disclosure [Abstract]

Long-Term Debt and Credit Agreements

Accounts Payable – Floor Plan

Long-term debt consisted of the following (in millions):



	June 30, 2018			March 31, 2019
Revolving credit facility	$	—		$	—
Receivables securitization facility	—			—
Term loan facility, due February 2024	686.6			771.6
Total long-term debt	686.6			771.6
Unamortized debt issuance costs	(15.4		)	(13.9		)
Total long-term debt, net of debt issuance costs	$	671.2		$	757.7
Reported as:
Current	$	—		$	—
Long-term	671.2			757.7
Total long-term debt, net of debt issuance costs	$	671.2		$	757.7

Receivables Securitization Facility

Credit Agreement

Fair Value Measurements

9 Months Ended

Mar. 31, 2019

Fair Value Disclosures [Abstract]

Fair Value Measurements

For certain of the Company’s financial instruments, including cash and cash equivalents, accounts and unbilled receivables, accounts payable – trade, accounts payable – floor plan, and other accrued liabilities, the carrying amount approximates fair value due to the short-term maturities of these instruments. Additionally, the Company’s financing receivables were measured at their respective fair values upon initial recognition.

The fair value hierarchy for the Company’s financial liabilities measured at fair value were as follows as of June 30, 2018 (in millions):



			Fair value measurement
	Carrying value		Level 1		Level 2		Level 3
Term loans	$	686.6	$	—	$	684.1	$	—

The fair value hierarchy for the Company’s financial assets and liabilities measured at fair value were as follows as of March 31, 2019 (in millions):



			Fair value measurement
	Carrying value		Level 1		Level 2		Level 3
Term loans	$	771.6	$	—	$	758.1	$	—

The fair value of the Company’s term loans are estimated based on quoted market prices for the debt which is traded in over-the-counter secondary markets that are not considered active. The carrying value of the Company’s term loans exclude unamortized debt issuance costs.

For certain of the Company’s nonfinancial assets, including goodwill, intangible assets, and property and equipment, the Company may be required to assess the fair values of these assets, on a recurring or nonrecurring basis, and record an impairment if the carrying value exceeds the fair value. In determining the fair value of these assets, the Company may use a combination of valuation methods which include Level 3 inputs. For the periods presented, there were no impairments charges.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Commitments and Contingencies	9 Months Ended
Commitments and Contingencies	Mar. 31, 2019
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Claims and assessments- In the normal course of business, the Company is subject to certain claims and assessments that arise in the ordinary course of business. The Company records a liability when the Company believes that it is both probable that a loss has been incurred and the amount can be reasonably estimated. Significant judgment is required to determine the outcome and the estimated amount of a loss related to such matters. Management believes that there are no claims or assessments outstanding which would materially affect the consolidated results of operations or financial position of the Company.

Share-based Compensation

9 Months Ended

Mar. 31, 2019

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Share-based Compensation

During the nine months ended March 31, 2019, the Company granted 2,303,035 service-based non-qualified stock options that vest in four equal installments on each of the first four anniversaries of the grant date, all of which were issued pursuant to the Company's 2017 Long-Term Incentive Plan (the "2017 LTIP"). During the nine months ended March 31, 2019, 75,000 service-based restricted stock units vested and there were 75,000 service-based restricted stock units unvested and outstanding as of March 31, 2019.

During the nine months ended March 31, 2019, there were 328,441 service-based and rolled options exercised and 262,796 service-based and rolled options expired or forfeited. As of March 31, 2019, 7,087,062 service-based and rolled options were outstanding, of which 3,101,425 were vested.

During the nine months ended March 31, 2019, there were 214,354 performance-based and market-based options forfeited. As of March 31, 2019, the performance condition for these options was deemed met; however, as the market condition for vesting had not yet been realized, the total balance of 2,811,614 options outstanding were unvested.

As of March 31, 2019, there were 1,120,478 remaining shares available for issuance under the Presidio, Inc. Employee Stock Purchase Plan (the "ESPP"). On September 5, 2018, the Compensation Committee of the Board of Directors approved an increase to the purchase price discount under the ESPP from 5% to 10%, causing the plan to be deemed compensatory. The Company enacted this change for all ESPP offering periods beginning on or after October 1, 2018. Subsequent to October 1, 2018, we record share-based compensation expense associated with the shares purchased by employees. On March 31, 2019, the Company held $0.8 million of contributions made by employees that were used to purchase 58,838 shares under the ESPP on April 9, 2019.

Share-Based Compensation Expense

The following table summarizes the share-based compensation expense recorded in our operating expenses, as follows (in millions):



	Three months ended March 31,				Nine months ended March 31,
	2018		2019		2018		2019
Selling expenses	$	0.4	$	0.4	$	1.1	$	1.5
General and administrative expenses	2.7		1.9		4.5		5.4
Total	$	3.1	$	2.3	$	5.6	$	6.9

As of March 31, 2019, there was $11.6 million of unrecognized share-based compensation expense, $11.4 million of which relates to service-based awards from the 2015 LTIP and 2017 LTIP grants and $0.2 million of which relates to the restricted stock unit grants.