Document MM5jKLz9Rq4y2EQkDVQqjz4KL

elOvk Page 57 of 84 Table of Contents COOPER INDUSTRIES, LTD. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued) In connection with acquisitions, Cooper records, to the extent appropriate, accruals for the costs of closing duplicate facilities, severing redundant personnel and integrating the acquired business into existing Cooper operations The following table summarizes the accrual balances and activity during each of the last three years Balance, beginning of year Spending Reversal of excess accruals Translation Balance, end of year 2004 $ 18 1 (7 1) -- -- $ 110 2003 (in millions) $ 29 1 (110) -- -- $ 18 1 2002 $ 39 3 (7 2) (2 4) (0 6) $ 29 1 At December 31, 2004 and 2003, respectively, $110 million and $17 7 million of the balance is related to facilities shutdown and realignment costs resulting from the acquisition of Eagle Electric m 2000 During the three years ended December 31, 2004, the annual spending was primarily related to downsizing and consolidating facilities Reversal of excess accruals represents the excess of facilities shut-down and realignment accruals over the ultimate amount expended on certain completed activities The excess facilities shut-down and realignment accrual of $2 4 million and related deferred tax asset balance was reversed in 2002 with a corresponding reduction m goodwill Involuntary termination benefits of $1 2 million, $7 9 million and $4 2 million were paid as 68, 624 and 296 hourly positions were eliminated during 2004, 2003 and 2002, respectively A total of 344 additional hourly positions are expected to be eliminated as a result of planned facilities shut-downs The remaining terminations and facility shut-down activities are expected to be substantially completed in early 2006 NOTE 8: DEBT AND LEASE COMMITMENTS 6 47% - 6 91% second series medium-term notes, due through 2010 6 38% third series medium-term notes, due through 2008 5 25% senior unsecured notes, due July 2007 5 50% senior unsecured notes, due November 2009 6 25% Euro bonds maturing in October 2005 4 45%* Pound Sterling notes payable maturing at various dates through 2005 Other Total long-term debt Current maturities Long-term portion December 31, 2004 2003 (in millions) $ 242 3 $ 242 3 100 0 100 0 300 2 305 2 275 0 275 0 409 1 374 6 26 9 30 4 10 5 96 1,364 0 1,337 1 (665 4) (0 4) $ 698 6 $1,336 7 * The weighted average interest rate on the Pound Sterling notes was 3 64% at December 31, 2003 Cooper has a U S committed credit facility of $500 million, which matures in November 2009 At December 31,2004, all of Cooper's $500 million U S committed credit facility was available At December F-16 http //www sec gov/Archives/edgar/data/1141982/000095012905001490/h22660el0vk.htm 2/6/2006