A reconciliation of the federal statutory tax rate to the Company’s effective tax rate follows:

The approximate dollar and diluted per-share amounts of tax reductions related to tax holidays in various countries in which the Company does business were: 1999-$30,400 and $.11; 1998-$18,000 and $.07; and 1997-$17,400 and $.07. The tax holidays expire at various dates through 2010.

The Company made income tax payments, net of refunds, of $80,334 in 1999, $117,321 in 1998, and $151,050 in 1997.

The components of Income Before Income Taxes follow:

Trade Receivables

Allowances for doubtful accounts and cash discounts netted against trade receivables were $49,036 and $35,518 at September 30, 1999 and 1998, respectively.

Inventories valued under the LIFO method were $354,071 in 1999 and $285,384 in 1998. Inventories valued under the LIFO method would have been higher by approximately $17,000 in 1999 and $18,900 in 1998, if valued on a current cost basis.