Notes to Consolidated Financial Statements 2000 and 1999. Since the date of issuance, approximately $21.5 million of the SellCo Notes have been redeemed with proceeds from the sale of stock and assets of SellCo subsidiaries and the pre- payment by EMCOR of the Supplemental SellCo Note. The SellCo Notes mature on December 15, 2004 if not deemed canceled at an earlier date pursuant to the Indenture. In 1998, EMCOR issued notes in connection with the acquisition of two companies. A principal payment of $1.0 million was made in August 1999 in respect of one note issued in August 1998, and a principal payment of the balance of $1.15 million was made in respect of that note in August 2000. Interest on the note was payable together with payments of principal. The other note, issued in the principal amount of $6.2 million in December 1998, was paid in full in January 1999. See Note K in the Notes to Consolidated Financial Statements. Other long-term debt consists primarily of loans for real estate, office equipment, automobiles and building improvements. As  of December 31, 2000 and 1999, respectively, other long-term  debt, excluding current maturities, totaling $1.1 million and $1.5 million was owed by certain of EMCOR’s subsidiaries. The  aggregate amount of other long-term debt maturing during the next five years is approximately: $0.2 million in each of 2001 and  2002, $0.1 million in each of 2003, 2004 and 2005, and  $0.4 million thereafter. The income tax provision in the accompanying Consolidated Statements of Operations for the years ended December 31, 2000, 1999 and 1998 consisted of the following (in thousands): EMCOR adopted Fresh-Start Accounting in connection with EMCOR’s reorganization in December 1994. As a result, the tax benefit of any net operating loss carryforwards or net deductible temporary differences which existed as of December 15, 1994 will result in a charge to the tax provision (provision in lieu of income taxes) and to capital surplus. Amounts credited to capital surplus were $24.4 million, $15.6 million and $8.2 million for the years ended December 31, 2000, 1999 and 1998, respectively. EMCOR files a consolidated federal income tax return including  all of its U.S. subsidiaries. At December 31, 2000, EMCOR had net operating loss carryforwards (“NOLs”) for U.S. income tax  purposes of approximately $40.0 million, which expire in the years 2009 through 2012. The NOLs are subject to review by the Internal Revenue Service. Future changes in ownership of EMCOR, as defined by Section 382 of the Internal Revenue Code, could limit the amount of NOLs available for use in any one year. In the United Kingdom, EMCOR’s wholly owned subsidiary, Drake & Scull, has a trading loss carry-forward of approximately  $6.0 million. Trading losses may be carried forward, without a  time limit, against future income from the same trade. Note G –  Income Taxes Notes Payable Capitalized Lease Obligations Other Long-Term Debt Factors accounting for the variation from U.S. statutory income tax rates relating to continuing operations for the years ended December 31, 2000, 1999 and 1998 were as follows (in thousands): EMCOR, 2000 Annual Report 32 2000 1999 1998 Current: Federal $ 1,364 $ 872 $ 302 State and local 3,394 2,510 2,035 Foreign 1,180 1,730 2,161 5,938 5,112 4,498 Deferred: Foreign 1,138 1,100 – Provision in lieu of income taxes 24,422 15,645 8,151 $ 31,498 $ 21,857 $ 12,649 2000 1999 1998 Federal income taxes at the statutory rate $ 25,055 $ 17,387 $ 10,409 State and local income taxes, net of federal tax benefits 3,894 2,990 1,058 Foreign income taxes 890 271 1,247 Non-deductible goodwill amortization 1,211 843 101 Other 448 366 (166) $ 31,498 $ 21,857 $ 12,649