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three years following the year in which the bonus is earned, or in a lump sum at the end of the three-year period. The bonus may be paid in cash, common shares or a combination of both. 

## Employee compensation expense for these plans is recorded in the year the bonus is earned. Changes in the amount of the bonus payable as a result of dividends and share price movements are recorded as employee compensation expense in the period of the change. 

## NOTE 17 Restructuring Charge 

In October 1999, we recorded a charge of $141 for exit costs associated with restructuring initiatives. During the year ended October 31, 2000, we revised our estimate of the remaining costs to execute our restructuring plan and reduced the liability by $43. 

## NOTE 18 Income Taxes 

We report our provision for income taxes in our Consolidated Statement of Income based upon transactions recorded in our consolidated financial statements regard- less of when they are recognized for income tax purposes, with the exception noted below for repatriation of retained earnings from our foreign subsidiaries. 

In addition, we record income tax expense or benefit directly in retained earn- ings for the tax effects of those items recorded in shareholdersGLYPH<213> equity. The net future income tax asset included in other assets is the cumulative 

amount of tax applicable to temporary differences between the accounting and tax values of our assets and liabilities. Future income tax assets and liabilities are measured at the tax rates expected to apply when these differences reverse. Changes in future income tax assets and liabilities related to a change in tax rates are recorded in income in the period of the tax rate change. 

We review the valuation of our future income tax assets on an ongoing basis and adjust our valuation allowance, as necessary, to reflect the realizable amount of our future income tax assets. 

We expect that we will realize our future income tax assets in the normal course of our operations. 

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We have entered into derivative instruments in order to hedge our exposure to these plans. 

## Changes in the fair value of these derivatives are recorded as employee compen- sation expense in the period in which they arise. 

Employee compensation expense related to these plans for the years ended October 31, 2002, 2001 and 2000 was $18, $25 and $3, respectively, net of the impact of hedging. 

During the years ended October 31, 2002, 2001 and 2000, payments of $8, $23 and $48, respectively, were made. The restructuring accrual as at October 31, 2002 was $6 and related to severance payments to former employees in the form of salary continuance. 

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Set out below is a reconciliation of our statutory tax rates and income t ax that would be payable at these rates to the effecti ve income tax rates and provision for income taxes that we have recorded in our Consoli dated Statement of Income: 

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