$19.8 million at June 30, 2000 and 1999, respectively (the current portions are $9.3 million and $9.2 million, respectively), and are included in other assets. These amounts are reported net of an allowance for doubtful accounts of $4.6 million and $4.9 million at June 30, 2000 and 1999, respectively. The Company has formed Medicine Shoppe Capital Corporation (“MSCC”), Pyxis Capital Corporation (“PCC”) and Cardinal Health Funding LLC (“CHF”) as wholly owned subsidiaries of Medicine Shoppe, Pyxis and Griffin Capital Corporation (“Griffin”), respectively. MSCC, PCC and CHF were organized for the sole purpose of buying receivables and selling those receivables to certain finan- cial institutions or to other investors. They are designed to be special purpose, bankruptcy remote entities. Although consolidated to the extent required by generally accepted accounting principles, MSCC, PCC and CHF are separate legal entities from the Company, Medicine Shoppe, Pyxis and Griffin; they each maintain separate financial state- ments; and their assets will be available first and fore- most to satisfy the claims of their creditors. Revenue Recognition. The Company records distribution revenue when merchandise is shipped to its customers and the Company has no further obligation to provide services related to such merchandise. The Company also acts as an intermediary in the ordering and subsequent delivery of bulk shipments of pharmaceutical products, which are classified as bulk deliveries to customer ware- houses and are included in total revenue.  The Company earns franchise and origination fees from its apothecary-style pharmacy franchisees. Franchise fees represent monthly fees based upon franchisees’ sales and are recognized as revenue when they are earned. Origina- tion fees from signing new franchise agreements are rec- ognized as revenue when the new franchise store is opened. At each balance sheet date, a determination is made by management to ascertain whether there is an indication that the intangible assets may have been impaired based primarily on a review of projected undiscounted operating cash flows for each subsidiary. years. Accumulated amortization was $637.2 million and $599.9 million at June 30, 2000 and 1999, respectively. Goodwill and Other Intangibles. Goodwill and other intangibles primarily represent intangible assets related  to the excess of cost over net assets of subsidiaries acquired. Intangible assets are being amortized using the straight-line method over lives that range from ten to forty Revenue is recognized from sales-type leases of point- of-use pharmacy systems when the systems are delivered, the customer accepts the system, and the lease becomes noncancelable. Unearned income on sales-type leases is recognized using the interest method. Sales of point-of- use pharmacy systems are recognized upon delivery and customer acceptance. Revenue for systems installed under operating lease arrangements is recognized over the lease term as such amounts become receivable according to the provisions of the lease.  Clinical information system license revenue is recog- nized upon delivery of the software to the customer and Property and Equipment . Property and equipment are stated at cost. Depreciation and amortization for financial reporting purposes are primarily computed using the straight-line method over the estimated useful lives  of the assets which range from one to fifty years, includ- ing capital lease assets which are amortized over the terms of their respective leases. Amortization of capital lease assets is included in depreciation and amortization expense. At each balance sheet date, the Company assesses the recoverability of its long-lived property,  based on a review of projected undiscounted cash flows associated with these assets.  Drug delivery system revenue is recognized upon ship- ment of products to the customer. Non-product revenue related to option, milestone and exclusivity fees are recog- nized when earned and all obligations of performance have been completed. Packaging and liquid fill contract manufacturing rev- enues are recognized from services provided upon the completion of such services. Pharmacy management and other service revenues are recognized as the related services are rendered according to the contracts established. A fee is charged under such contracts through a capitated fee, a dispensing fee,  a monthly management fee, or an actual costs-incurred arrangement. Under certain contracts, fees for services are guaranteed by the Company not to exceed stipulated amounts or have other risk-sharing provisions. Revenue  is adjusted to reflect the estimated effects of such con- tractual guarantees and risk-sharing provisions. Inventories. A majority of inventories (approximately 63% in 2000 and 59% in 1999) are stated at lower  of cost, using the last-in, first-out (“LIFO”) method,  or market and are primarily merchandise inventories. The remaining inventory is primarily stated at the lower of cost using the first-in, first-out (“FIFO”) method or market.  If the Company had used the FIFO method of inventory valuation, which approximates current replacement cost, inventories would have been higher than the LIFO method reported at June 30, 2000 and 1999 by $46.0 million and $50.4 million, respectively.  Cardinal Health, Inc. Annual Report 2000 37