Document r6BYqzRZwD5e0x2QnQO24z30r

COOPER INDUSTRIES, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued) A summary of the status of Cooper's fixed stock option plans for officers and employees as of December 31, 2001 and activity during the three years ended December 31, 2001 is presented below Outstanding at beginning of year Granted Exercised Canceled Outstanding at end of year Options exercisable at end of year Options available for grant at end of year Shares 2001 Weighted Average Exercise Price 3,810,497 $43 28 1,740,000 $45 19 (625,260) $42 33 (184,579) $44 09 4,740,658 $44 07 1,866,391 5,116,955 2000 Weighted Average Exercise Shares Price 2,748,601 $45 94 1,425,800 $37 94 (6,500) $39 06 (357,404) $42 57 3,810,497 $43 28 1,608,117 1,916,174 Shares 1999 Weighted Average Exercise Price 2,144,104 $46 52 1,018,700 $43 52 (286,492) $39 82 (127,711) $50 13 2,748,601 $45 94 1,128,905 3,289,602 Range of Exercise Prices $34 84 - $37 94 $38 13 - $39 06 $43 13 - $46 10 $54 28 - $56 63 Options Outstanding Weighted Shares Average Outstanding Remaining At Contractual 12/31/01 Life 1,316,091 81 257,687 38 2,630,301 80 536,579 56 4,740,658 Weighted Average Exercise Price $37 61 $39 05 $45 24 $56 61 Options Exercisable Shares Exercisable At 12/31/01 311,031 255,020 765,428 534,912 1,866,391 Weighted Average Exercise Price $37 94 $39 06 $44 16 $56 62 During 2001, options to purchase 10,000 shares of common stock were granted to nonemployee directors at an exercise price of $33 66 and options for 4,000 shares were exercised at $42 13 to $49 03 per share During 2000, options to purchase 9,000 shares of Common stock were granted to nonemployee directors at an exercise price of $3 5 19 and options for 4,000 shares were exercised at $ 17 31 per share During 1999, options to purchase 11,000 shares of Common stock were granted to nonemployee directors at an exercise price of $49 03 and options for 4,000 shares were exercised at $14 69 per share At December 31, 2001, options under the director plans for 23,000 Common shares were exercisable at $42 13 to $63 78 per share, and 129,100 shares were reserved for future grants Participants in the Employee Stock Purchase Plan receive an option to purchase Common stock at a price that is the lesser of 85% of the market value on the offering date or 85% of the market value on the purchase date On September 10, 2001, a total of 311,452 shares were sold to employees at $44 63 per share At December 31, 2001, subscriptions for 915,876 shares of Common stock were outstanding at $34 07 per share or, if lower, 85% of the average market price on September 8, 2003, which is the purchase date At December 31, 2001, an aggregate of 2,423,976 shares of Common stock were reserved for future issuance Cooper follows the intrinsic value method of accounting for stock-based compensation plans as prescribed by Accounting Principles Board Opmion No 25, Accounting for Stock Issued to Employees, and related interpretations Accordmgly, no compensation expense is recognized under Cooper's fixed stock option plans or Employee Stock Purchase Plan Compensation expense of $2 7 million, $5 1 million and $6 1 million was recognized m the consolidated financial statements during 2001, 2000 and 1999, respectively for the performance-based and restricted stock awards If compensation expense for all of Cooper's stock-based compensation plans was recognized using the alternative fan value method of accounting under Statement of Financial Accounting Standards No 123, Accounting for Stock-Based Compensation, net mcome and earnings per share would have decreased by approximately 2 0% in 2001, 2 1% in 2000 and 2 3% in 1999 The fan value was estimated on the date of grant, F-15