MANAGEMENT ’ S DISCUSSION AND ANALYSIS 2001 ANNUAL REPORT  37 The company’s exit from Gas Marketing was substantially completed at December 31, 2001. TransCanada remains contingently liable pursuant to obligations under certain contracts that relate to the divested Gas Marketing business. The company has deferred recognition of after-tax gains on sales in the amount of approxi- mately $100 million and has included this in the December 31, 2001 balance sheet provision for loss on discontinued operations. The gains will be recognized in income from discontinued operations as the underlying exposures reduce. In accordance with the terms of these contracts and in the normal course of business, the under- lying volumes related to the contracts are expected to decrease over time, with the majority expected to decrease in 2002. The contingent liability under these obligations, which could be significant, is contingent on certain future events, the occurrence of which is not determinable, and the amount, if any, is dependent upon future prevailing market prices and conditions. The purchasers of the Gas Marketing business have agreed to indemnify TransCanada in the event the company is called upon to perform under the obligations. The company recorded a net loss from discontinued operations in 2001 of $67 million. This amount includes a net loss of $90 million based on management’s estimates of proceeds and disposal costs and net earnings of $3 million prior to plan approval, related to the Gas Marketing business. Also included in 2001 is a positive  $20 million after-tax adjustment to the December Plan, which was substantially completed at December 31, 2001. Further adjustments to the estimate of the net loss on disposal will be recognized as a gain or loss on discontin- ued operations in the period such changes are determined. The company recorded a net gain from discontinued operations in 2000 of $61 million. This amount includes operating losses of $139 million related to the Gas Marketing business prior to plan approval and a net gain of $200 million related to the December Plan, primarily due to proceeds in excess of the original estimate. The company recorded a net loss from discontinued operations in 1999 of $534 million. This amount includes a net gain of $20 million related to the April Plan (which was substantially completed in 1999); and a net loss of $439 million, asset impairments of $159 million and earnings prior to plan approval of $54 million relat- ed to the December Plan; and a loss prior to plan approval of $10 million related to Gas Marketing. These businesses are accounted for as discontinued operations. The assets and liabilities, net income/(loss) and cash provided from/(used by) operations are presented as discontinued operations in the Consolidated Financial Statements, and comparative periods are restated. In April 1999, the Board of Directors approved a plan (April Plan) to dispose of ANGUS Chemical Company, TransCanada’s U.S. midstream business and the U.S. refined products and natural gas liquids marketing business. In December 1999, the Board of Directors approved a plan (December Plan) to dispose of the company’s International, Canadian midstream and certain other businesses. In July 2001, the Board of Directors approved a plan to dispose of the company’s Gas Marketing business. The Gas Marketing business provided supply, trans- portation and asset management services, as well as structured financial products and services, to its customers in Canada and the northern tier of the U.S. TransCanada has realized approximately $3.4 billion of proceeds from asset sales of all discontinued operations. FINANCIAL REVIEW DISCONTINUED OPERATIONS 