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In 2000, Energizer recorded U.S. capital loss tax benefits of $24.4 related to the sale of Energizer’s Spanish affiliate. Energizer recog- nized capital loss tax benefits of $16.6 and $48.4 in 1999 and 1998, respectively, primarily related to past restructuring actions. The capital loss benefits are not recognized in Energizer’s pro forma financial results (see Note 23) as Energizer would not have been able to realize these benefits on a stand-alone basis. 

The effective tax rate for discontinued operations is higher than the federal statutory rate in 1999 and 1998 due to state income taxes. 

The deferred tax assets and deferred tax liabilities recorded on the balance sheet as of September 30 are as follows: 

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Total deferred tax assets/liabilities shown above include current and non-current amounts. 

Tax loss carryforwards of $11.0 expired in 2000, primarily due to the sale of Energizer’s Spanish affiliate. Future expiration of tax loss carryforwards and tax credits, if not utilized, are as follows: 2001, $.8; 2002, $.8; 2003, $2.2; 2004, $6.7; 2005, $3.6; thereafter or no expiration, $11.5. The valuation allowance is primarily attributed to deferred tax assets related to certain accrued liabilities, tax loss carryforwards and tax credits outside the United States. The valua- tion allowance decreased $35.7 in 2000 primarily due to the decrease in tax loss carryforwards discussed above and other deferred tax assets disposed of as part of the sale of Energizer’s Spanish affiliate. 

At September 30, 2000, approximately $65.9 of foreign subsidiary net earnings were considered permanently invested in those busi- nesses. Accordingly, U.S. income taxes have not been provided for such earnings. It is not practicable to determine the amount of unrecognized deferred tax liabilities associated with such earnings. 

