NOTE 3   OPERATING SEGMENTS In accordance with ASC Topic 280, Segment Reporting ( ASC 280 ), and based on the nature of the Company s services, the Company has two operating and reportable segments: Specialty Pharmacy Services and Traditional Pharmacy Services. ASC 280 requires an enterprise to report segment information in the same way that management internally organizes its business for assessing performance and making decisions regarding allocation of resources. The Company evaluates the performance of operating segments and allocates resources based on income from operations. Revenues from Specialty Pharmacy Services and Traditional Pharmacy Services are derived from the Company s relationships with healthcare payors including Plan Sponsors as well as from our relationship with pharmaceutical manufacturers, patients and physicians. The Specialty Pharmacy Services segment consists of the Company s specialty pharmacy distribution and therapy management services. Specialty Pharmacy Services distribution occurs locally through community pharmacies, centrally through mail order facilities and through our infusion pharmacies for patients requiring infused medications in the home or infused at a variety of sites including the Company s ambulatory infusion sites. All Specialty Pharmacy Services target certain specialty medications that are used to treat patients living with chronic and other complex healthcare conditions. The Traditional Pharmacy Services segment consists mainly of traditional mail order pharmacy fulfillment, and to a lesser extent, prescription discount card programs and integrated PBM services. These Traditional Pharmacy Services are designed to offer Plan Sponsors cost-effective delivery of pharmacy benefit plans including the low cost distribution of mail services for plan members who receive traditional maintenance medications. In the quarter ended September 30, 2009, the Company renamed the reportable segment formerly known as  PBM Services  to  Traditional Pharmacy Services . The decision to