The Company expects to realize all of its tax assets, including the use of all carryforwards, before any expiration. Earnings before income taxes and differences between the effective tax rate and U.S. Federal income tax rate were: Due to its international business presence, the Company uses foreign exchange forward contracts to manage its exposure to exchange rate volatility. Foreign exchange balance sheet exposures are aggregated and hedged at the corporate level. Maturities on these instruments generally fall within the one- month and six-month range. The objective of the hedging program is to reduce earnings volatility resulting from the trans- lation of net foreign exchange balance sheet positions. The total notional amount of these forward contracts outstanding at December 31 was as follows: The Company is exposed to financial risk resulting from volatility in foreign exchange rates and interest rates. This risk is closely monitored and managed through the use of financial derivative contracts. As clearly stated in the CompanyGLYPH<213>s policies and  procedures, financial derivatives are used expressly for hedging purposes, and under no circumstances are they used for spec- ulating or trading. Transactions are entered into only with banking institutions with strong credit ratings, and thus the credit risk associated with these contracts is considered imma- terial. Hedging program results and status are reported to senior management on a periodic basis. The Company manages its exposure to interest rate fluctuations through the use of interest rate swaps. Currently the Company has in place three interest rate swaps that effectively convert fixed-rate debt into floating-rate debt. The objective of the swaps is to more efficiently balance borrowing costs and interest rate risk. The contracts were established during 1998 and 1999 and have a total notional value of $350 million.  Based on borrowing rates currently available to the Company for bank loans with similar terms and average maturities, the fair value of total debt, including current maturities, at December 31, 2000, approximated $1,138 million. The carrying value at that date was $1,196 million. At December 31, 1999, the fair and carrying values of total debt, including current maturities, were $1,104 million and $1,215 million, respectively. The carrying values of all other receivables and liabilities approxi- mated fair values. Fair Value of Financial Instruments Interest Rates Note 10. Financial Instruments and Risk Management: Foreign Exchange Rates $ Millions  2000 1999 1998 Earnings (loss) before income taxes: U.S. $(136)  $232 $(21) Foreign 139 (11) 15 $ (3 $221 $ (6)  Tax at 35 percent U.S.  statutory rate $ (1  $ 77 $ (2)  State taxes 1 3 (1) Nondeductible special charges 4  - 9  Nondeductible goodwill amortization 3 3 3 Research tax credits (11) (15) (10) Foreign sales corporation benefits (12)  (18) (9) Differences in rates and taxability  of foreign subsidiaries (3) 10 15 All other, net (2) (5) (1) $( 1 9 ) $5 5 $(4 $ Millions  2000 1999  Currency: British Pound $148 $120  Euro 64 47 Australian Dollar 20 19 Hong Kong Dollar 11 8  Mexican Peso 7 - Japanese Yen 5 7  Canadian Dollar 3 3  Other 2  2 $260 $206  29