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Components of the net periodic benefit cost are as follows: 

<img src='content_image/75266.jpg'>

In addition to the net periodic benefit cost, additional expense of $46 was recognized during the year ended June 30, 2002, for special termi- nation benefits provided as part of early retirement packages in con- nection with the Company’s restructuring program. 

Assumed health care cost trend rates have a significant effect on the amounts reported for the health care plans. A one-percentage point change in assumed health care cost trend rates would have the following effects: 

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## Note 11 Income Taxes 

Under SFAS No. 109, ”Accounting for Income Taxes,” income taxes are recognized for the following: a) amount of taxes payable for the current year, and b) deferred tax liabilities and assets for future tax conse- quences of events that have been recognized differently in the financial statements than for tax purposes. Deferred tax assets and liabilities are established using the enacted statutory tax rates and adjusted for tax rate changes. Earnings before income taxes consist of the following: 

<img src='content_image/75267.jpg'>

The income tax provision consists of the following: 

<img src='content_image/75268.jpg'>

The Company’s effective income tax rate was 31.8%, 36.7% and 36.0% in 2002, 2001 and 2000, respectively, compared to the U.S. statutory rate of 35.0%. The country mix impacts of foreign operations reduced the Company’s effective tax rate to a larger degree than prior years – 3.1% for 2002. Excluding restructuring costs and adjustments to remove amortization of goodwill and indefinite-lived intangibles that is no longer required, and their related tax effects, the effective tax rate was 31.1%, 31.1% and 32.5% in 2002, 2001 and 2000, respectively. 

Taxes impacted shareholders’ equity with a $477 credit for the year ended June 30, 2002 and a $155 charge for the year ended June 30, 2001. These primarily relate to the tax effects of net investment hedges and tax benefits from the exercise of stock options. 

Undistributed earnings of foreign subsidiaries that are considered to be reinvested indefinitely were $10,698 and $9,231 at June 30, 2002 and 2001, respectively. If such earnings were repatriated, additional taxes may result. 

