Document jgEmQOxvRJmnV8aGJ8wXqQmy5

COOPER INDUSTRIES LTD(Form 424B2, Received 10/25/2002 13 39 31) Page 40 of 68 businesses acquired prior to 2001 In 2000, Cooper completed two large acquisitions and three small product-line acquisitions in its Electrical Products segment and one small acquisition in its Tools & Hardware segment for an aggregate cost of $578 4 million, subject to adjustment as provided in the acquisition agreements A total of $378 2 million m goodwill was recorded, including an additional $23 2 million m 2001, with respect to the acquisitions In March 2000, Cooper acquired Eagle Electric for a total cost of $124 6 million Eagle Electric manufactures and sells electrical wiring devices including switches, receptacles, plugs and connectors, cords and other electrical accessories to the residential and commercial markets In May 2000, Cooper acquired B-Line Systems for a total cost of $430 6 million B-Line Systems manufactures and markets support systems and enclosures for electrical, mechanical and telecommumcations/data applications In 1999, Cooper completed eight acquisitions in its Electrical Products segment and two small acquisitions in its Tools & Hardware segment for an aggregate cost of $443 8 million The acquisitions include two businesses in the United Kingdom and a business m France that expanded the product offerings of the Cooper European based division, three domestic hghting businesses and four other small product-line acquisitions A total of $354 4 million in goodwill was recorded, including an additional $16 2 million in 2000, with respect to the acquisitions. The acquisitions have been accounted for as purchases and the results of the acquisitions are included in Cooper's consolidated income statements since the respective acquisition dates The pro forma net income and earnings per share for 2000 and 1999, assuming the acquisitions had been made at the beginning of each year, would not be materially different from reported net income and earnings per share On October 9,1998, Cooper completed the sale of its Automotive Products segment for cash proceeds of $1 9 billion During 1999, Cooper received an additional $149 1 million representing reimbursement of Cooper's pre-closing cash funding of international operations and the additional cash invested m the Automotive Products segment between March 31,1998 and October 9, 1998. F-9 COOPER INDUSTRIES, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) NOTE 5: INVENTORIES Raw materials ... .... Work-m-process . . Finished goods .. .. Perishable tooling and supplies . .. ... .. . ... Excess of current standard costs over LIFO costs Net inventories . . ... December 31, 2001 2000 (in millions) $ 223 6 132 2 $ 230 1 134 6 374 0 404 5 21 4 20 5 751 2 (80 3) 789..7 (82 8) $ 670 9 $ 706 9. Vitfr //linimi tiV* r no_________ ______tn ^.4.^.1 .rrv_ rvnri n ntTr i i a i r>n^