## Notes to Consolidated Financial Statements 

As of June 30, 2000, ther e remained approximately 4.8 million additional shares available to be issued pur - suant to the Plans. 

The market value of restricted shares awarded by the Company is recorded in the “Other” component of shareholders’ equity in the accompanying consoli - dated balance sheets. The compensation awar ds are amortized to expense over the period in which par tici- pants perform services, generally one to seven years. As of June 30, 2000, appr oximately 0.3 million shares remained restricted and subject to forfeiture. 

The Company has an employee stock pur chase plan under which the sale of 5.0 million of Car dinal’s common stock have been authorized. The pur chase price is deter- mined by the lower of 85 per cent of the closing market price on the date of subscription or 85 per cent of the closing market price on the last day of the of fering period. At June 30, 2000, subscriptions of 0.3 million were outstanding, however no shares had been issued to employees under the plan. 

## 12. Segment Information 

In the prior year, the Company was comprised of thr ee reportable segments: Pharmaceutical Distribution, Pharmaceutical Services and Medical-Surgical Products. In September 2000, the Company expanded its manage - ment reporting structure from three to four reportable segments by separating the Pharmaceutical Services segment primarily into two segments: Phar maceutical Technologies and Services and Automation and Informa- tion Services. Prior period amounts have been r estated for this change. 

The Company’s operations are principally managed on a products and services basis and are comprised of four reportable business segments: Pharmaceutical 

Distribution and Provider Services, Medical-Surgical Products and Services, Pharmaceutical Technologies and Services and Automation and Information Services. 

The Pharmaceutical Distribution and Provider Ser- vices segment involves the distribution of a br oad line of pharmaceuticals, healthcare and beautycare products, therapeutic plasma and other specialty phar maceutical products and other items typically sold by hospitals, r etail drug stores and other healthcare providers. In addition, this segment provides services to the healthcare industry through integrated pharmacy management, temporary pharmacy staffing, as well as franchising of apothecar y- style retail pharmacies. 

The Medical-Surgical Products and Services segment involves the manufacture of medical, surgical and lab- oratory products and the distribution of these pr oducts to hospitals, physician offices, surgery centers and other healthcare providers. 

The Pharmaceutical Technologies and Services seg- ment provides services to the healthcare manufacturing industry through the design of unique dr ug delivery sys- tems, liquid fill contract manufacturing, compr ehensive packaging services, and reimbursement services. 

The Automation and Information Services segment pro- vides services to hospitals and other healthcar e providers through pharmacy automation equipment and clinical information system services. 

The Company evaluates the performance of the seg- ments based on operating earnings after the corporate allocation of administrative expenses. Information about interest income and expense, and income taxes is not pr o- vided on a segment level. In addition, special char ges are not allocated to the segments. The accounting policies of the segments are the same as described in the sum - mary of significant accounting policies. 

