Notes to Consolidated Financial Statements

(13) Income Taxes
Income tax expense (benefit) is comprised of the following components:

The reconciliation of the statutory tax rate to the effective tax rate is as follows:

Deferred tax assets and liabilities consist of the following:

For the years ended October 31, 1999, 1998, and 1997, approximately 10 percent, 5 percent and 6 percent, respectively, of the Company's earnings before performance-based stock options and income taxes were generated from properties in foreign jurisdictions.

The Company has not recognized a deferred tax liability of approximately $14,000 for the undistributed earnings of non-U.S. subsidiaries because the Company currently considers these earnings to be reinvested indefinitely.