Document G5QNn2ak8xaxpkDLGrv44Z50r

COOPER INDUSTRIES, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued) Components of net penodic benefit cost Service cost Interest cost Expected return on plan assets Amortization of unrecognized transition (asset) obligation Amortization of pnor service cost Recognized actuarial (gain) loss Settlement/curtailment Net periodic benefit cost Pension Benefits Other Postretirement Benefits 2001 2000 1999 2001 (m millions) 2000 1999 $ 162 42 5 (49 7) $ 14 9 41 0 (52 1) $ 154 38 1 (50 7) $ 02 82 - $ 01 88 - $ 02 104 - 02 03 21 $ 11 6 02 (2 0) (3 6) $ (16) (1 5) 01 (0 8) 01 $ 07 - (1 2) (8 5) - $ (13) - (1 4) (9 3) - $ (18) - (15) (7 5) - $ 16 Net penodic pension benefit costs includes a $3 6 million settlement gam in 2000 primarily resultmg from the 1999 voluntary severance program (Note 2) Weighted average assumptions as of December 31 Discount rate Expected return on plan assets Rate of compensation increase Pension Benefits_________________ 2001 2000 2001 Other Postretirement Benefits 2000 6 00%-7 25% 7 00% - 8 50% 3 00% - 4 50% 6 00%-7 75% 7 00% - 8 50% 3 00% - 4 50% 7 25% 7 75% For other postretirement benefit measurement purposes, a 10 0% annual increase m the per capita cost of covered health care benefits was assumed for 2002 The rate was assumed to decrease gradually to 5 3% for 2007 and remam at that level thereafter A one-percentage-point change m the assumed health care cost trend rates would have the following effects Effect on total of service and mterest cost components Effect on the postretirement benefit obligation 1-PercentagePoint Increase 1-PercentagePomt Decrease (in millions) $ 05 $ (0 5) $ 86 $ (7 8) During 2001, 2000 and 1999, expense with respect to domestic and foreign defined contribution plans (primarily related to various groups of hourly employees) totaled $16 4 million, $17 6 million and $17 5 million, respectively NOTE 14: COOPER SAVINGS AND EMPLOYEE STOCK OWNERSHIP PLANS All full-tune domestic employees, except for certain bargaining unit employees, are eligible to participate in the Cooper Retirement Savings and Stock Ownership Plan ("CO-SAV") Under the terms of the Plan, employee savmgs deferrals are partially matched with contributions by Cooper of Common stock consisting of either an allocation of shares m Cooper's Employee Stock Ownership Plan ("ESOP") or treasury shares issued to the ESOP F-20