2. Business Combinations, Merger-Related Costs and Other Special Items Business Combinations.  On September 10, 1999,  the Company completed the ALP Mer ger, which was accounted for as a pooling-of-interests. In the ALP Merger, the Company issued approximately 5.8 million Common Shares to ALP stockholders.  On May 21, 1999, the Company completed a mer ger transaction with PSI. The Company issued appr oximately 233,000 Common Shares to PSI shareholders and has accounted for the merger transaction as a pooling- of-interests in the accompanying financial statements.  In addition to the merger transactions described above, during fiscal 2000, the Company completed several indi - vidually immaterial acquisitions, which were accounted for under the purchase method of accounting. These business combinations were primarily related to the Company’s medical-surgical distribution, point-of-use pharmacy systems and pharmaceutical-packaging services. The aggregate purchase price, which was paid primarily  in cash, including fees and expenses, was appr oximately $63.5 million. Liabilities of the operations assumed wer e approximately $7.0 million, including debt of $4.0 mil - lion. Had the acquisitions taken place July 1, 1999, con - solidated results would not have been materially dif ferent from reported results.  On February 3, 1999, the Company completed a mer ger transaction with Allegiance that was accounted for as  a pooling-of-interests transaction. The Company issued approximately 70.7 million Common Shares to Allegiance stockholders and Allegiance’s outstanding stock options were converted into options to purchase approximately 10.3 million Common Shares. In addition, on August 7, 1998, the Company completed a mer ger transaction with Scherer that was accounted for as a pooling-of-inter ests. The Company issued approximately 34.2 million Common Shares to Scherer stockholders and Scherer’s outstanding stock options were converted into options to purchase approximately 3.5 million Common Shares. The Company recorded a merger-related charge to reflect transaction and other costs incurred as a result of these merger trans- actions in fiscal 1999. Additional mer ger-related costs associated with integrating the separate companies and instituting efficiencies are charged to expense in subse- quent periods when incurred. In addition to the merger transactions described above, during fiscal 1999, the Company completed several indi - vidually immaterial acquisitions, which were accounted for under the purchase method of accounting. These business combinations were primarily related to the Company’s medical-surgical distribution, point-of-use pharmacy systems and pharmaceutical-packaging services. Cardinal Health, Inc. Annual Report 2000 39 Special Charges The following is a summary of the special charges for the fiscal years ended June 30, 2000, 1999 and 1998. During fiscal 1998, the Company made a number  of individually immaterial acquisitions for an aggr egate purchase price of $47.8 million and exchanged non- monetary assets with a value of appr oximately $10.5 mil- lion to acquire an interest in Source Medical Corporation, a new venture in Canada. All of these acquisitions wer e accounted for as purchase transactions. Had the acquisi- tions taken place July 1, 1997, consolidated r esults would not have been materially different from reported results. On February 18, 1998, the Company completed  a merger transaction with MediQual (the “MediQual Merger”) which was accounted for as a pooling-of- interests. The Company issued approximately 860,000 Common Shares to MediQual shareholders and Medi- Qual’s outstanding stock options were converted into options to purchase approximately 36,000 Common Shares of the Company.  The aggregate purchase price, which was paid primarily  in cash, including fees and expenses, was appr oximately $160.8 million. Liabilities of the operations assumed were approximately $18.9 million, including debt  of $3.2 million. Had the acquisitions taken place July 1, 1998, consolidated results would not have been materi - ally different from reported results.  Fiscal Year Ended June 30, (in millions, except per share amounts) 2000 1999 1998 Transaction and employee- related costs $ (3.8) $ (95.4) $ (35.7) ALP transaction bonus (20.3) – – Exit costs (11.7) (9.4) (3.8) Scherer restructuring costs (9.6) (26.7) – Inventory write-offs – (4.0) – Owen Healthcare, Inc.  employee-related costs – (1.1) – Canceled merger transaction – 3.7 – Other integration costs (19.3) (13.7) (9.7) Total merger-related costs $ (64.7) $ (146.6) $ (49.2) Other special charges: Facilities closures $ – $ – $ (6.1) Employee severance – – (2.5) Total other special charges $ – $ – $ (8.6) Total special charges $ (64.7) $ (146.6) $ (57.8) Tax effect of special charges 14.9 29.0 22.0 Tax benefit for change  in tax status – – 11.7 Pro forma ALP taxes – 9.3 4.6 Net effect of special charges $ (49.8) $ (108.3) $ (19.5) Net effect on diluted  earnings per share $ (0.18) $ (0.38) $ (0.06)