Document jyEjVov8egO2vEmzkyvRgOmE5

COOPER INDUSTRIES LTD(Form 424B2, Received- 10/25/2002 13 39 31) Page 48 of 68 changes in equity . $(11 3) $40 $(7.3) $(787) $276 F-16 COOPER INDUSTRIES, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) NOTE 12: INCOME TAXES Components of income from continuing operations before income taxes U S operations Foreign operations Income from continuing operations before income taxes Year Ended De 2001 20C (m millions, excel $211 9 104 5 $316 4 $42 13 $54 Components of income tax expense Current U S Federal .. U S state and local Foreign .. Deferred U S Federal ... U S state and local Foreign . .. ... .. . ... ... .. Income tax expense ..... .. $ 60 8 6.2 23 2 90 2 (43.9) 25 63 (35 1) $ 55.1 $e z C " c $lc- Total income taxes paid ............................................ .... $100.8 $i: Effective tax rate reconciliation: U S. Federal statutory rate .. ... .... State and local income taxes . . .......................................... Foreign statutory rate differential ....................... Nondeductible goodwill .. .... . ... ....................... Foreign Sales Corporation .... .. ....................... Tax credits .. ... .. Reduction in tax reserves . Other . . .. .... ... Effective tax rate attributable to continuing operations 35 0% 14 (3 5) 43 (1 4) (0 2) (15 8) (2.4) 17 4% z 1 1 t 1 2 /A 1J-------- _,t\ i . r on TTN