Document Z4kojJ5VEkzKOvnm6kYoKgwr0

elOvk Page 54 of 84 Table of Contents COOPER INDUSTRIES, LTD. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued) Balance at December 31, 2001 Employees terminated Cash expenditures Balance at December 31, 2002 Reversal of accrual Balance at December 31,2003 No of Employees 273 (273) -- -- -- -- Accrued Severance Facility Consolidation and Closure ($ m millions) $ 30 $ 21 ---- (3 0) (2 1) -- -- ---- $ --$ -- Financial Advisors and Others $ 30 0 -- 05 7) 14 3 (14 3) $-- See "Restructuring" in Management's Discussion and Analysis of Financial Condition and Results of Operations for additional information related to the restructuring NOTE 3: ACQUISITIONS In March 2004, Cooper acquired a manufacturer of specification and commercial grade lighting fixtures for $10 1 million In November 2004, Cooper acquired a U K based manufacturer of visual and audible alarms and public address speakers for $38 5 million The results of operations of the acquisitions are included in the consolidated income statement since the respective acquisition dates Pro-forma net income and earnings per share for 2004, assuming that the acquisitions had been made at the beginning of the year, would not be materially different from reported net income and earnings per share During 2002, Cooper paid $1 1 million related to previously acquired businesses The terms of a previous acquisition agreement provided for additional consideration to be paid if earnings of the acquired businesses exceeded certain targeted levels NOTE 4: INVENTORIES Raw materials Work-in-process Finished goods Perishable tooling and supplies Allowance for excess and obsolete inventory Excess of current standard costs over LIFO costs Net inventories December 31, 2004 2003 (in m illions) $ 185 2 $ 182 8 1186 320 2 13 2 113 9 346 3 20 6 637 2 (58 9) (55 3) 663 6 (47 6) (64 0) $ 523 0 $ 552 0 F-13 http //www sec gov/Archives/edgar/data/1141982/000095012905001490/h22660el0vk htm 2/6/2006