Document gDY6rJaJzv338gOoK18xjQ1Gq

elOvk Page 75 of 84 Table of Contents COOPER INDUSTRIES, LTD. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued) Concentrations of Credit Risk Concentrations of credit risk with respect to trade receivables are limited due to the wide variety of customers as well as their dispersion across many different geographic areas with no one customer receivable exceeding 5% of accounts receivable Fair Value of Financial Instruments Other than Derivatives Cooper's financial instruments other than derivative instruments, consist primarily of cash and cash equivalents, trade receivables, trade payables and debt instruments The book values of cash and cash equivalents, trade receivables and trade payables are considered to be representative of their respective fair values Cooper had approximately $1 5 billion and $1 3 billion of debt instruments at December 31, 2004 and 2003, respectively The book value of these instruments was approximately equal to fair value (as represented primarily by quoted market prices) at December 31, 2004 and 2003 NOTE 18: NET INCOME PER COMMON SHARE Income from continuing operations Basic Diluted Year Ended December 31, Year Ended December 31, 2004 2003 2002 2004 2003 2002 ($ in millions, shares in thousands) $ 339 8 $ 274 3 $ 213 7 $ 339 8 $ 274 3 $ 213 7 Charge from discontinued operations -- 126 0 -- -- 126 0 _____ Net income applicable to Common stock $ 339 8 $ 148 3 $ 213 7 $ 339 8 $ 148 3 $ 213 7 Weighted average Common shares outstanding Incremental shares from assumed conversions Options, performance-based stock awards and other employee awards Weighted average Common shares and Common share equivalents 9 2,480 9 2,683 9 3,152 9 2,480 2,283 9 4,763 9 2,683 1,088 9 3,771 9 3,152 517 9 3,669 Options and employee awards are not considered in the calculations if the effect would be antidilutive F-32 http //www.sec gov/Archives/edgar/data/1141982/000095012905001490/h22660el0vk htm 2/6/2006