subsidiaries. It is not practicable to estimate the amount of tax that might be payable on the eventual r emittance  of such earnings. Deferred income taxes arise from temporary differences between financial reporting and tax reporting bases of assets and liabilities, and operating loss and tax cr edit carryforwards for tax purposes. The components of the deferred income tax assets and liabilities ar e as follows (in millions): estimated amount that the Company would r eceive  (or pay) to terminate the contracts at the r eporting date. The fair values are based on quoted market prices for  the same or similar instruments.  The Company had Federal net operating loss car ryfor- wards of $2.3 million and state net operating loss car ry- forwards of $166.9 million at June 30, 2000. A valuation allowance of $2.7 million at June 30, 2000 has been provided for the state net operating loss, as utilization  of such carryforwards within the applicable statutory peri- ods is uncertain. The Company’s Federal net operating loss carryforwards and a portion of the state net operating loss carryforwards are subject to a change in ownership limitation calculation under Internal Revenue Code Sec- tion 382. After application of the valuation allowance described above, the Company anticipates no limitations will apply with respect to utilization of these assets. The Federal net operating loss carryforward begins expiring  in 2005 and the state net operating loss car ryforward Provision has not been made for U.S. or additional foreign taxes on $303.2 million of undistributed ear nings of foreign subsidiaries because those earnings are consid- ered permanently reinvested in the operations of those A reconciliation of the provision based on the Federal statutory income tax rate to the Company’s effective income tax rate is as follows: 2000 1999 1998 Provision at Federal statutory rate 35.0% 35.0% 35.0% State income taxes, net of Federal benefit 3.0 3.9 4.1 Foreign tax rates (2.2) (3.0) (4.8) Nondeductible expenses 1.4 4.5 1.5 Other (0.3) (1.7) (0.7) Effective income tax rate 36.9% 38.7% 35.1% Fiscal Year Ended June 30, Fiscal Year Ended June 30, 2000 1999 1998 Current: Federal $ 221.1 $ 123.9 $ 113.9 State 21.1 26.3 23.1 Foreign 28.3 21.7 15.8 Total $ 270.5 $ 171.9 $ 152.8 Deferred  127.6 132.4 90.1 Total provision $ 398.1 $ 304.3 $ 242.9 June 30, June 30, 2000 1999 Other current assets/(liabilities) $ (124.3) $ 82.5 Deferred income taxes and other liabilities (341.9) (421.1) Net deferred income tax liabilities $ (466.2) $ (338.6) 2000 1999 Notional Fair Value Notional Fair Value (in millions) Amount Gain/(Loss) Amount Gain/(Loss) Foreign currency  forward contracts $ 17.2 $ 0.1 $ – $ – Commodity contracts $ 3.9 $ 0.1 $ 9.6 $ (0.3) Interest Rate Swaps $ 20.0 $ – $20.0 $ (0.7) June 30, June 30, 2000 1999 Deferred income tax assets: Receivable basis difference $ 37.0 $ 27.8 Accrued liabilities 35.5 101.0 Net operating loss carryforwards 8.3 9.1 Foreign tax and other credit carryforwards 10.5 16.5 Other 8.9 35.0 Total deferred income tax assets $ 100.2 $ 189.4 Valuation allowance for deferred income  tax assets (2.7) (7.0) Net deferred income tax assets $ 97.5 $ 182.4 Deferred income tax liabilities: Inventory basis differences (180.4) (138.9) Property-related (199.7) (218.9) Revenues on lease contracts (178.7) (165.9) Other (4.9) 2.7 Total deferred income tax liabilities $ (563.7) $ (521.0) Net deferred income tax liabilities $ (466.2) $ (338.6) Consolidated U.S. income before taxes (in millions):  The provision for income taxes consists of the following (in millions): The above amounts are classified in the consolidated balance sheets as follows (in millions): Cardinal Health, Inc. Annual Report 2000 43 6. Income Taxes  2000 1999 1998 U.S. Based Operations $ 952.3 $ 710.9 $ 582.3 Non-U.S. Based Operations 125.5 74.4 109.1 Total $ 1,077.8 $ 785.3 $ 691.4 Fiscal Year Ended June 30,