Document kmnqVv7aeDwB3764mNb4KazKB

The nonrecurring charges for 2001 total $74 1 million, or $44 5 million after taxes ($ 47 per diluted share) Of the total $74 1 million, $35 2 million remams to be expended at December 31, 2001 Future cash expenditures agamst the accrual include severance and exit costs related to facility consolidations and costs associated with the Company's review of strategic alternatives A total of 77 salaried and 196 hourly positions will be eliminated in 2002 as a result of these planned consolidation actions It is anticipated that all expenditures will be incurred during the first half of 2002 During the fourth quarter of 1998, Cooper announced a voluntary and involuntary severance program and committed to consolidate several facilities While both the voluntary and involuntary severance programs were announced m 1998, the amount that could be accrued in 1998 was limited to severance relating to personnel actually severed in the fourth quarter and the severance provided by Cooper's written formal policies During the first quarter of 1999, Cooper completed the voluntary 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 during the first quarter of 1999 The additional accruals during 1999 totaled $7 3 million In addition, during 1999, Cooper reduced legal accruals by $2 8 million related to the favorable settlement of certain litigation concerning lead m 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 m 1998 Smce the original charge related to the litigation was included as a nonrecurring item m the Tools & Hardware segment and the costs related to TLG pic were reflected as a nonrecurring corporate item, the reversal of the accrual and the reimbursement of the expenses were reflected as nonrecurring items The net nonrecurring items for 1999 resulted in a $3 7 million charge before income taxes and resulted m 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) - Accrued Severance Facility Consolidation (in millions) $ 25 4 $ 58 12 - (22 0) 10 4 78 03 (3 4) 47 -- (5 3) 51 - (1 7) 30 - _______ !L_ $- (3 0) $- As of December 31, 2001 all employee reduction and facility consolidation actions related to the first quarter 1999 and fourth quarter 1998 employee reduction and facility consolidation plans were essentially completed and amounts accrued for these programs have been satisfied See Note 2 of the Notes to Consolidated Financial Statements for additional information on nonrecurring charges 16