General and administrative costs relating to services that support discontinued operations:  Corporate overhead costs related to discontinued operations remain in the Corporate segment. Indirect financial and preferred equity charges:  Direct financial charges are reported in their respective business seg- ments and are primarily associated with the debt and preferred securities related to the wholly-owned pipelines. Restructuring and other costs:  As a result of TransCanada’s change in strategic direction in 1999, restructuring and other costs related to continuing operations of $108 million, after tax, were recorded in 1999. This charge included costs related to reduction of employees, rationalization of real estate and other provisions, as well as asset impairments. In 2001, TransCanada recorded a $5 million after-tax adjustment to these costs. Net expenses, after tax, in the Corporate segment, excluding restructuring and other costs, were $67 million in 2001 compared to $78 million in 2000 and $155 million in 1999. The decrease in 2001 over 2000 is primarily due to lower financial and preferred equity charges as a result of lower net debt balances and the redemption of pre- ferred securities. In addition, tax recoveries of $28 million were recorded in 2000 to reflect the impact of tax law and income tax rate changes. The decrease in 2000 over 1999 is also due to lower financial and preferred equity charges. Financial charges in 2001 reflect a full year’s impact of the 2000 debt reductions as well as additional debt reductions in 2001. The Corporate segment reflects net expenses not allocated to specific business segments, including: Lower Net Expenses:  Excluding tax rate changes, net expenses decreased by $34 million or 32 per cent from 2000. Reduced Financial Charges:  The company reduced its long-term debt by $793 million and redeemed preferred securities of $318 million in 2001, resulting in reduced financial charges. Cost Reductions:  In 2001, the company continued to reduce general and administrative costs. Year ended December 31 (millions of dollars) CORPORATE HIGHLIGHTS CORPORATE RESULTS-AT-A-GLANCE MANAGEMENT ’ SDISCUSSIONANDANAL YSIS TRANSCANADA 32 2001 2000 1999 General and administrative costs related to discontinued operations 13 18 19 Indirect financial and preferred equity charges 67 109 158 Interest income and other (13) (49) (22) 67 78 155 Restructuring and other costs 5 – 108 Net expenses, after tax 72 78 263