healthcare industry. This trend has resulted in expansion into service areas which (a) complement the Company’s core pharmaceutical distribution business; (b) provide opportunities for the Company to develop syner gies  with, and thus strengthen, the acquired business; and (c) generally generate higher margins as a percentage  of operating revenue than pharmaceutical distribution. As the healthcare industry continues to change, the Company continually evaluates possible candidates for merger or acquisition and intends to continue to seek opportunities to expand its healthcare operations and services in all reporting segments. There can be no assurance that it will be able to successfully pursue any such opportunity or consummate any such transaction,  if pursued. If additional transactions ar e entered into  or consummated, the Company would incur additional merger-related costs. The increase in interest expense and other of $3.0 million during fiscal 2000 compared to fiscal 1999 is attributable to the combination of higher average inter est rates on debt and higher average levels of bor rowing during fiscal 2000. Additional borrowings were used to fund working capital needs as well as the Company’s stock buyback program during fiscal 2000 (see Note 9 of the “Notes to Consoli - dated Financial Statements”). The increase in interest expense and other of $5.3 million during fiscal 1999 com - pared to fiscal 1998 is primarily due to the Company’ s issuance of $150 million of 6.25% Notes due 2008,  in a public offering in July 1998 (see “Liquidity and Capi - tal Resources”). The effect of the issuance of the 6.25% Notes during fiscal 1999 was par tially offset by a decrease in other debt instruments with higher interest rates. The provisions for income taxes relative to pretax earnings were 37% of pretax earnings in fiscal 2000 compared with 39% in fiscal 1999 and 35% for fiscal 1998. The fluctua - tion in the tax rate is primarily due to the impact of r ecord- ing certain non-deductible merger-related costs during various periods and the change in ALP tax status, as well as fluctuating state and foreign effective tax rates as  a result of the Company’s business mix for all thr ee fiscal years. In addition, a change in tax status of a 51% owned German subsidiary resulted in a lower tax pr ovision during fiscal 1998. The provisions for income taxes excluding the impact of merger-related charges, the tax status of the German subsidiary and including the pro forma impact  of the change in ALP tax status wer e 36%, 37%, and 38% for fiscal years 2000, 1999, and 1998, r espectively. Working capital increased to $2.6 billion at June 30, 2000 from $2.3 billion at June 30, 1999. This incr ease resulted from additional investments in inventories, trade r eceivables, and cash and equivalents of $925.3 million, $74.9 million and $319.2 million, respectively. Offsetting the increases in current assets was an increase in accounts payable and other accrued liabilities of $667.0 million and $641.0 mil - lion, respectively. Increases in inventories reflect the higher level of business volume in Phar maceutical Distribution  and Provider Services’ activities, especially in the four th quarter of fiscal 2000 when operating r evenue for this seg- ment grew 24% over the same period in the prior year . The increase in trade receivables is slightly lower than the Com - pany’s revenue growth (see “Operating Revenue” above) due to effective asset management resulting in the increase in cash and equivalents. The change in accounts payable  is due primarily to the timing of inventor y purchases. Property and equipment, at cost, incr eased  by $138.9 million from June 30, 1999 to June 30, 2000. The increase was primarily due to ongoing plant expansion and manufacturing equipment purchases  in certain manufacturing businesses, as well as additional investments made for management information systems and upgrades to distribution facilities. The Company has several operating lease agreements for the construction  of new facilities. See further discussion in Note 8  of “Notes to Consolidated Financial Statements.” Shareholders’ equity increased to $4.0 billion from $3.6 billion at June 30, 1999, primarily due to net earnings of $679.7 million and the investment of $133.1 million by employees of the Company thr ough various stock incentive plans, offset by treasury share repurchases of $333.9 million and dividends paid  of $28.0 million. The Company has a commercial paper program, provid- ing for the issuance of up to $1.0 billion in aggr egate maturity value of commercial paper. The Company had $509.2 million outstanding under this pr ogram at June 30, 2000. The Company also has uncommitted shor t- term credit facilities with various bank sour ces aggregat- ing $250.0 million. At June 30, 2000, $54.2 million  was outstanding related to these short-term credit facili- ties. The Company has an unsecur ed bank credit facility which provides for up to an aggr egate of $1.5 billion in borrowings of which $750 million expir es on March 31, 2001 and $750 million expires on March 31, 2004. At expiration, these facilities can be extended upon mutual consent of the Company and the lending institutions.  This credit facility exists largely to support issuances  Cardinal Health, Inc. Annual Report 2000 29 Provision for Income Taxes Interest Expense and Other Liquidity and Capital Resources