Management’ Discussion and Analysis of Financial Condition and Results of Operations of commercial paper as well as other shor t-term borrow- ings and remains unused at June 30, 2000. At June 30, 2000, the commercial paper and other short-term borrow- ings of $563.4 million were reclassified as long-term, reflecting the Company’s intent and ability, through the existence of the unused credit facility, to refinance these borrowings. The Company also has line-of-cr edit agree- ments with various bank sources aggregating $49.3 mil- lion, of which $19.1 million is outstanding as of June 30, 2000 (see Note 4 of “Notes to Consolidated Finan- cial Statements”).  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. The Company currently has the capacity to issue $250 million of additional debt securities pur - suant to a shelf registration statement filed with the Securities and Exchange Commission.  The Company believes that it has adequate capital resources at its disposal to fund cur rently anticipated capital expenditures, business growth and expansion, and current and projected debt service requirements, includ- ing those related to business combinations. See Notes 1 and 5 of the “Notes to Consolidated Financial Statements” for information regarding the use  of financial instruments and derivatives thereof, including foreign currency hedging instruments. As a matter of policy, the Company does not engage in “speculative” transactions involving derivative financial instruments. Termination Agreement.  On August 24, 1997, the Com - pany and Bergen announced that they had enter ed into  a definitive merger agreement, as amended, pursuant  to which a wholly owned subsidiar y of the Company would be merged with and into Bergen (the “Bergen Merger Agreement”). On July 31, 1998, the United States Dis - trict Court for the District of Columbia granted the Federal Trade Commission’s request for a preliminary injunction  to halt the proposed merger. On August 7, 1998, the Company and Bergen jointly terminated the Bergen Merger Agreement and, in accordance with the terms of the Bergen Merger Agreement, the Company reimbursed Bergen for $7.0 million of transaction costs. Additionally, the termination of the Bergen Merger Agreement caused the costs incurred by the Company (that would not have been deductible had the merger been consummated)  to become tax deductible for federal income tax purposes, resulting in a tax benefit of $12.2 million. The obligation to reimburse Bergen and the additional tax benefit wer e recorded in the fourth quarter of the fiscal year ended June 30, 1998. As of July 1, 1999, the Company adopted the Statement of Position 98-1 (“SOP 98-1”), “Accounting for the Costs of Computer Software Developed or Obtained for Inter nal Use.” SOP 98-1 provides guidance on accounting for costs of computer software developed or obtained for internal use. The adoption of this statement did not have a material impact on the Company’s consolidated finan- cial statements. In June 1998, the FASB issued Statement of Financial Accounting Standards No. 133 (“SFAS 133”), “Account- ing for Derivative Instruments and Hedging Activities,”  as amended in June 2000 by Statement of Financial Accounting Standards No. 138 (“SFAS 138”), “Account- ing for Certain Derivative Instruments and Certain Hedging Activities,” which requires companies to recognize all derivatives as either assets or liabilities in the balance sheet and measure such instruments at fair value.  As amended by Statement of Financial Accounting Stan - dards No. 137 (“SFAS 137”), “Accounting for Derivative Instruments and Hedging Activities – Defer ral of the Effective Date of FASB Statement No. 133,” the pr ovi- sions of SFAS 133 will require adoption no later than the Subsequent Business Combinations.  On August 16, 2000, the Company completed the pur chase of Bergen Brunswig Medical Corporation for approximately  $180 million, subject to post-closing adjustments.  On July 26, 2000, the Company completed the pur chase  of a manufacturing facility and the rights to two pr opri- etary, topical drug delivery technologies from Advanced Polymer Systems, Inc. for $25.0 million at closing and contingent future payments totaling potentially an addi - tional $26.5 million. On July 19, 2000, the Company completed the purchase of Rexam Healthcare Packaging’s folding-carton manufacturing operations in Guaynabo, Puerto Rico for $32.5 million, subject to post-closing adjustments. All three acquisitions will be accounted for as purchase transactions for financial reporting purposes. Other Recently Issued Financial Accounting Standards.  Recently Adopted Financial Accounting Standards.  30 Cardinal Health, Inc. Annual Report 2000