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 year ended October 31, 2000, the Company’s earnings before income taxes generated from properties in foreign jurisdictions were negative. For the years ended October 31, 1999 and 1998, approximately 4 percent and 5 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 $10,000 for the undistributed earnings of non-U.S. subsidiaries because the Company currently considers these earnings to be reinvested indefinitely.