Interest expense increased $19.9 in 2000 primarily in the last six months of the year reflecting incremental debt assumed by Energizer immediately prior to the spin-off. Interest expense decreased $3.5 in 1999 compared to 1998 primarily due to lower rates on foreign debt. Other financing-related costs were favorable $4.3 in 2000 compared to 1999 primarily due to lower foreign exchange losses partially  offset by the discount on the sale of accounts receivable financing arrangement. Other financing costs were unfavorable $6.0 in 1999 compared to 1998 primarily due to higher foreign exchange losses in 1999. Working capital was $401.7 and $478.1 at September 30, 2000  and 1999, respectively. Capital expenditures totaled $72.8, $69.2 and $102.8 in 2000, 1999 and 1998, respectively. These expendi- tures were primarily funded by cash flow from operations. Capital expenditures of approximately $90.0 are anticipated in 2001 and  are expected to be financed with funds generated from operations. Net transactions with Ralston, prior to the spin-off, resulted in  cash usage of $210.7, $293.7 and $154.7 in 2000, 1999 and  1998, respectively. Cash flows from continuing operations totaled $289.6 in 2000, $337.2 in 1999 and $232.6 in 1998. The 14% decrease in cash flows from continuing operations in 2000 is due primarily to increased inventory levels and the realization of capital loss tax  benefits in fiscal 1999, partially offset by higher cash earnings and proceeds from the sale of accounts receivable. The 45% increase in cash flows from continuing operations in 1999 resulted primarily from higher cash earnings and also from favorable changes in  working capital items. See Note 5 to the Consolidated Financial Statements for a table  which presents, by major cost component and by year of provision, activity related to the restructuring charges discussed above during fiscal years 2000, 1999 and 1998, including any adjustments to the original charges. Energizer expects to fund the remaining costs of these restructuring actions with funds generated from operations. As of September 30, 2000, except for the disposition of certain  assets held for disposal, substantially all activities associated with 1994 through 1997 restructuring plans are complete. The remaining accrual related to these plans was $2.1 at September 30, 2000 and primarily represents asset disposition costs. The carrying value of assets held for disposal under all restructuring plans was $6.7 at September 30, 2000. restructuring plans. In addition, $8.5 of termination benefits  recorded in 1997 were reversed in 1998, due primarily to the  modification of a European plant closing plan, driven by the  changing business environment in Europe. The modifications  resulted in the termination of approximately 200 fewer employees than originally anticipated.  Annual pre-tax cost savings from the 1999 restructuring plans  have been or are expected to be as follows: 2000 – $.3 and $1.4 thereafter. Annual pre-tax cost savings from the 1998 restructuring plans have been or are expected to be as follows: 1999 – $12.0; 2000 and thereafter – $13.0. Annual pre-tax cost savings from the 1997 restructuring plans have been or are expected to be as follows:  1998 – $9.0; 1999 – $19.0; 2000 and thereafter – $23.0. Income taxes, which include federal, state and foreign taxes, were 35.5%, 35.6% and 20.7% of earnings from continuing operations before income taxes in 2000, 1999 and 1998, respectively. Income taxes include certain unusual items in all years, the most significant of which are described below: 15 Income Taxes LIQUIDITY AND CAPITAL RESOURCES  Excluding unusual items, the income tax percentage was 41.8% in 2000, 41.3% in 1999 and 39.2% in 1998.  Interest and Other Financial Items • In 2000, the income tax percentage was favorably impacted by  the recognition of $24.4 of U.S. capital loss tax benefits related  to the disposition of Energizer’s Spanish affiliate. • Capital loss tax benefits of $16.6 and $48.4 were recognized in 1999 and 1998, respectively, and were primarily related to prior years’ restructuring actions.  • In 1999, the income tax percentage was unfavorably impacted by pre-tax restructuring provisions that did not result in tax benefits due to tax loss situations or particular statutes of a country.