Document kmeR6a69edKG1bO75Kdy7XzwD

COOPER INDUSTRIES LTD(Form 424B2, Received 10/25/2002 13 39 31) Page 38 of 68 provided for the costs associated with performing the Company's review of strategic alternatives See Note 20 for additional information regarding the company's review of strategic alternatives The nonrecurring charges for 2001 total $74 1 million, or $44 5 million after taxes ($.47 per diluted common share) Of the total $74 1 million, $35 2 million remains to be expended at December 31, 2001 A total of 77 salaried and 196 hourly positions will be eliminated m 2002 as a result of these planned consolidation actions During the first quarter of 1999, Cooper completed a previously announced voluntary severance program and accrued an additional $5 8 million primarily representing the voluntary severance program premium over the severance provided under Cooper's established policies Cooper also accrued $15 million related to severance and other costs for facility closures announced dunng the first quarter of 1999 In addition, dunng 1999, Cooper reduced legal accruals by $2.8 million related to the favorable settlement of certain litigation concerning lead in mini-blinds and reassessment of the required reserve Cooper also reached agreement and received $0 8 million under an insurance policy related to the unsuccessful offer to acquire TLG pic in 1998 Since the ongmal charge related to the litigation was included as a nonrecumng item m the Tools & Hardware segment and the costs related to TLG pic were reflected as a nonrecumng corporate item, the reversal of the accrual and the reimbursement of the expenses were reflected as nonrecumng items The net nonrecumng items for 1999 resulted m a $3 7 million charge before F-7 COOPER INDUSTRIES, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) income taxes and resulted in an after-tax charge of $2 4 million ($ 02 per diluted common share) The following table reflects activity related to the first quarter 1999 and fourth quarter 1998 employee reduction and facility consolidation plan Balance at December 31, 1998 . ... ... Voluntary Severance Program premium over normal severance Facility closings announced .. Employees terminated . . . .. ... . ... Cash expenditures ........................ Balance at December 31, 1999 . Employees terminated . .. Cash expenditures ............... ............. ... . . , . .................. ..................................... Balance at December 31, 2000 Employees terminated . Cash expenditures ................................. . .. ... ...................... Balance at December 31, 2001 ... .. No of Employees 1,635 - 249 (966) " 918 (311) - 607 (607) - - Accri Severe (m mil] $ 25 C 3 (22 1C (E c (E $ Vlttn //uninii chorali/tl/W ------- ---------------------------------------------------- n /~itta a a 41^