Notes to Consolidated Financial Statements The Company also maintains other shor t-term credit facili- ties that allow for borrowings up to $250.0 million. At June 30, 2000 and 1999, $54.2 million and $35.3 mil - lion were outstanding under these uncommitted facilities. The effective interest rate as of June 30, 2000 and 1999 was 6.3% and 6.0%, respectively. The Company also  has an unsecured bank credit facility, which provides for  up to an aggregate of $1.5 billion in bor rowings of which $750 million expires on March 31, 2001 and $750 mil - lion expires on March 31, 2004. At expiration, these facilities can be extended upon mutual consent of the Company and the lending institutions. This cr edit facility exists largely to support issuances of commercial paper  as well as other short-term borrowings and remains unused at June 30, 2000. At June 30, 2000 and 1999, the commercial paper and other short-term borrowings totaling $563.4 million and $84.5 million, r espectively, were reclassified as long-term, reflecting the Company’s intent and ability, through the existence of the unused credit facility, to refinance these borrowings.  periodically enters into foreign currency options and forward contracts (principally European currencies and Japanese yen) to hedge certain anticipated sales and firm commitments denominated in foreign currencies. These option and forward contracts typically mature within one year. The Company’s forward contracts do not subject it to material risks due to the exchange rate movements because gains and losses on these contracts offset losses and gains and the assets, liabilities, and transactions being hedged. The risk of loss associated with the foreign currency option contracts is limited  to the premium paid for the option contracts. Gains and losses on the forward and option contracts are recognized concurrently with the gains and losses fr om the underly- ing transactions. Premiums paid on the option contract are amortized in other income/expense over the life  of the underlying hedged transactions. During fiscal 1999, the Company issued $150 million of 6.25% Notes due 2008, the pr oceeds of which were used for working capital needs due to gr owth in the Com- pany’s business. At June 30, 2000, the Company cur - rently has the capacity to issue $250 million of additional debt securities pursuant to a shelf r egistration statement filed with the Securities and Exchange Commission.  The Company also uses commodity contracts to hedge raw material costs expected to be denominated in for eign currency. These contracts generally cover a one-year period and all gains and losses ar e deferred and recog- nized in cost of goods sold with the underlying pr oduct costs. The contracts qualify as hedges for accounting pur - poses in accordance with the criteria established in SFAS No. 80 “Accounting for Futures Contracts.” Cash flows resulting from these commodity contracts are classified  in the same category as the items being hedged. The counterparties to these contracts are major finan- cial institutions and the Company does not have signifi - cant exposure to any one counterparty. Management believes the risk of loss is r emote and in any event would not be material. Certain long-term obligations are collateralized by prop- erty and equipment of the Company with an aggr egate book value of approximately $27.5 million at June 30, 2000. Maturities of long-term obligations for future fiscal years are: 2001 – $9.3 million; 2002 – $568.1 million; 2003 – $2.9 million; 2004 – $201.2 million; 2005 – $1.6 million and 2006 and ther eafter – $712.0 million. Fair Value of Financial Instruments. The carrying amounts of cash and equivalents, trade r eceivables, accounts payables, notes payable-banks and other accrued liabilities at June 30, 2000 and 1999, appr oxi- mate their fair value because of the shor t-term maturities of these items. Interest Rate Management.  The Company has entered into an interest rate swap agreement with a notional amount  of $20.0 million that matures November 2002 to hedge against variable interest rates. The Company exchanged its variable rate position related to a lease agreement for  a fixed rate of 7.08%. The Company r ecognizes in income the periodic net cash settlements under the swap agr ee- ment as it accrues.  The estimated fair value of the Company’s long-term obligations was $1,455.9 million and $1,233.3 million as compared to the carrying amounts of $1,495.1 million and $1,235.5 million at June 30, 2000 and 1999, respectively. The fair value of the Company’s long-term obligations is estimated based on either the quoted market prices for the same or similar issues and the current interest rates offered for debt of the same remaining maturities or estimated discounted cash flows. The following is a summary of the fair value gain/(loss)  of the Company’s derivative instruments, based upon the Foreign Exchange Risk Management. In the normal course of business, operations of the Company ar e exposed to fluctuations in foreign exchange rates. In order to reduce the uncertainty of the impact of for eign exchange rate movements on operations, the Company 42 Cardinal Health, Inc. Annual Report 2000 5. Financial Instruments