Document 06BevaKKLLY4K7E3DRKRNQy6m

elOvk Page 63 of 84 Table of Contents COOPER INDUSTRIES, LTD. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued) Minimum pension liability adjustment Change in fair value of derivatives Reclassification to eammgs Translation adjustment Other nonowner changes in equity Before Tax Amount 2004 Tax (Expense) Benefit Net Amount Before Tax Amount 2003 Tax (Expense) Benefit (in millions) Net Amount Before Tax Amount 2002 Tax (Expense) Benefit Net Amount $03 3) $ 53 $ (8 0) $ 15 2 $(22 9) $(55 7) $ 22 3 $(33 4) /--S 00 52 (0 2) 50 55 8 (2 1) 01 (2 0) (19 5) 31 (0 1) 30 36 3 (4 7) 24 (2 3) 40 2 19 (10) 09 (14 0) (2 8) 14 _ J_D 26 2 01 02 03 (6 8) 01 (0 1) 0 1 (0 1) 02 24 (4 4) $ 47 5 $ (16 2) $ 31 3 $ (0 2) $ 2 1 $ 1 9 $(62 2) $ 24 6 $(37 6) NOTE 12: INCOME TAXES Components of income from contmuing operations before income taxes U S operations Foreign operations Income from continuing operations before income taxes Components of income tax expense Current U S Federal U S state and local Foreign Deferred U S Federal U S state and local Foreign Income tax expense Total income taxes paid Effective tax rate reconciliation U S Federal statutory rate State and local income taxes Non U S Operations Extraterritorial income exclusion Tax credits Other Effective tax rate attributable to continuing operations Year Ended December 31, 2004 2003 2002 ($ in millions) $ 71 3 357 2 $428 5 $ 56 1 290 4 $346 5 $ 81 4 198 8 $280 2 $ 46 49 51 5 61 0 $(62 1) (8 2) 43 2 (27 1) $ 80 54 49 4 62 8 19 8 47 32 27 7 $ 88 7 $ 87 3 79 7 21 0 (14) 99 3 $ 72 2 30 5 33 (30 1) 37 $ 66 5 $ 30 8 $ 27 9 35 0% 15 03 5) (1 0) (13) -- 20 7% 35 0% 24 (15 8) (1 2) (0 2) 06 20 8% 35 0% 20 (115) (14) (0 2) (0 2) 23 7% F-21 http //www.sec gov/Archives/edgar/data/1141982/000095012905001490/h22660el0vk htm 2/6/2006