Document daReOwEp8bKngBgL2XNdMg60b

elOvk Page 53 of 84 Table of Contents COOPER INDUSTRIES, LTD. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued) The following table reflects activity related to the fourth quarter 2002 restructuring charge 2002 Restructuring Charge Asset write-offs Employees terminated Cash expenditures Balance at December 31, 2002 Employees terminated Cash expenditures Reversal of excess accrual Balance at December 31, 2003 Employees terminated Cash expenditures Balance at December 31, 2004 Number of Employees 1,206 -- Accrued Facilities Closure Severance and Rationalization ($ in millions) $ 183 $ 20 8 -- (15 0) (184) -- -- -- (2 1) -- 1,022 162 58 (982) -- -- -- (14 9) (2 9) (9) (0 9) 31 04 (0 6) 23 (31) -- -- -- (0 4) ___ (17) --$ --$ 06 A total of 435 salaried and 771 hourly positions were eliminated as a result of the planned closure and rationalization actions Of those planned position eliminations, approximately 600 positions were replaced ultimately as a result of Cooper's ongoing efforts to relocate production capacity to lower cost locations During the fourth quarter of 2001, Cooper committed to the consolidation or closure of certain Electrical Products segment facilities and recorded a provision for severance and other related costs of these announced actions of $7 1 million ($ 1 7 million of which was non-cash) Plans to consolidate or close facilities arose as a result of Cooper management continuing to review and modify their assessment of required production and distribution facilities and capacity, in consideration of depressed demand levels On August 1,2001, Danaher Corporation ("Danaher") announced it had made an unsolicited proposal to Cooper for a merger through a stock and cash transaction subject to conducting due diligence procedures On August 8, 2001, Cooper's Board of Directors unanimously rejected Danaher's proposal and authorized management to explore all strategic alternatives that would maximize shareholder value including mergers, sales, strategic alliances, acquisitions or other similar strategic alternatives During the 2001 fourth quarter, Cooper recorded a General Corporate restructuring charge of $35 0 million for the fees and expenses of financial advisors and $1 0 million for legal and other external costs associated with performing Cooper's strategic alternatives review On February 13, 2002, Cooper announced that it completed its strategic alternatives review process After careful review of all the available alternatives with management and its financial advisors, Cooper's Board of Directors concluded that it was in the best interests of Cooper's shareholders to move forward with its plan to reincorporate in Bermuda The following table reflects activity related to the fourth quarter 2001 severance, facility consolidation and closure and financial advisors and other cost accruals A total of 77 salaried and 196 hourly positions were eliminated as a result of these consolidation activities F-12 http.//www sec gov/Archives/edgar/data/1141982/000095012905001490/h22660el0vk.htm 2/6/2006