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: 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.  2000 1999 Deferred Tax Liabilities: Depreciation and property  differences $ (61.1) $ (64.7) Pension plans (31.9) – Gross deferred tax liabilities (93.0) (64.7) Deferred Tax Assets: Accrued liabilities 45.7 64.3 Tax loss carryforwards and  tax credits 25.6 46.4 Intangible assets 42.6 37.6 Postretirement benefits  other than pensions 28.8 – Inventory differences 5.2 3.5 Other 8.8 12.1 Gross deferred tax assets 156.7 163.9 Valuation allowance (31.1) (66.8) Net deferred tax assets $ 32.6 $ 32.4 Total deferred tax assets/liabilities shown above include current and non-current amounts. 33