TSE:FTS The following is a reconciliation of the combined statutor income tax rate to the effective income tax rate: On July 4, 2001, Fortis Properties sold an income producing property for proceeds of $11.5 million, resulting in an after-tax gain of $2.6 million. On October 11, 2000, the Corporation sold certain Canadian trademark rights allowing the purchaser to use the name GLYPH<212>FortisGLYPH<213> in respect of  insurance and financial services in Canada. Proceeds on the sale were $1.5 million, which resulted in an after-tax gain of $1.2 million. On December 12, 2000, Canadian Niagara Power sold surplus land for proceeds of $2.9 million, resulting in a gain, before income taxes, of $2.6 million. The CorporationGLYPH<213>s share of the after-tax gain was $1.0 million. On June 22, 2001, the Corporation sold the business comprising the deposits and loans of Fortis Trust for cash consideration of $5.8 million. Earnings from discontinued operations include the CorporationGLYPH<213> share of the income from operations of Fortis Trust for the period ended June 22, 2001. The 2000 consolidated balance sheet, statements of earnings, retained earnings and cash flows have been reclassified to conform with the 2001 presentation. The assets and liabilities of discontinued operations have been reported elsewhere in these consolidated financial statements.  The results of discontinued operations, which have been included in the consolidated statements of earnings, are as follows: FORTIS Inc. 2OO1 Annual Report 52 15. Discontinued Operations 14. Gain on Sale of Surplus Land 13. Gain on Sale of Certain Trademark Rights 12. Gain on Sale of Income Producing Property 11.Income Tax Rate 2001 (per cent) 2000 Statutory income tax rate 42.5 43.4 Large corporations tax 2.7 3.4 Goodwill amortization 1.7 2.3 Pension costs (4.5) (7.6) Dividends on preference shares 1.5 2.5 Impact of change in tax rates on future income taxes  (0.6) (4.4) Difference between Canadian statutor rates and those applicable to foreign subsidiaries (7.7) (5.7) Other (1.3) (2.1) Effective income tax rate 34.3 31.8 Statements of Earnings 2001 (in thousands) 2000 Operating revenues $ 2,112 $ 4,378 Earnings from discontinued operations, net of income taxes of $172 (2000 - $405) $ 216 $ 533 Gain on disposal of discontinued operations,  net of income taxes of $349 505 - Results of discontinued operations $ 721 $ 533