Document a7kn2QYGr6vDmQGwQ8wKKa3R

elOvk Page 66 of 84 Table of Contents COOPER INDUSTRIES, LTD. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued) Components of net periodic benefit cost Service cost Interest cost Expected return on plan assets Amortization of unrecognized transition obligation Amortization of prior service cost Recognized actuarial (gain) loss Curtailment Net periodic benefit cost 2004 Pension Benefits___________ Other Postretirement Benefits 2003 2002 2004 2003 2002 (in millions) S 162 41 8 (47 1) __ 06 74 -- $ 18 9 $ 16 8 42 0 (40 1) 03 06 89 02 $ 28 7 $ 16 0 42 9 (46 3) 02 06 33 -- $ 167 S 02 82 -- __ (0 1) (2 8) -- $___ 55 $ 02 92 -- __ (0 1) (3 5) -- $ 58 $ 02 97 -- __ (0 8) (3 9) -- $ 52 Weighted average assumptions used to determine benefit obligations as of December 31 Discount rate Rate of compensation increase Other Pension Benefits__________________ Postretirement Benefits 2004 2003 2004 2003 5 00% - 5 75% 5 50% - 6 25% 5 75% 2 25% - 4 00% 2 75% - 4 00% -- 6 25% -- Weighted average assumptions used to determine net costs for the years ended December 31 Discount rate Expected return on plan assets Rate of compensation increase Pension Benefits_________ 2004 2003 Other Postretirement Benefits 2004 2003 5 50% - 6 25% 6 00% - 7 00% 6 25% - 8 50% 6 50% - 8 50% 2 75% - 4 00% 2 75% - 4 25% 6 25% -- -- 7 00% -- -- Assumed healthcare cost trend rates Healthcare cost trend rate assumed for next year Rate to which trend rate is assumed to decline (ultimate trend rate) Year that rate reaches ultimate trend rate 2004 9 00% 5 00% 2009 2003 9 00% 5 00% 2008 A one-percentage-point change in the assumed health care cost trend rate would have the following effects Effect on total of service and interest cost components Effect on the postretirement benefit obligation 1-Percentage- 1-PercentagePoint Increase Point Decrease (in millions) $ 06 $ $ 89 $ (0 5) (7 9) F-24 http://www sec gov/Archives/edgar/data/1141982/000095012905001490/h22660el0vk htm 2/6/2006