Document zQRk7E88oKwr4E6xXEMMa5kpn

COOPER INDUSTRIES, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued) payments under capital leases are not significant Cooper has entered into various operating lease agreements, primarily for manufacturing, warehouse and sales office facilities and equipment. Generally, the leases mclude renewal provisions and rental payments may be adjusted for increases m taxes, insurance and maintenance related to the property Rent expense for all operatmg leases was $40 1 million, $37 1 million and $32 9 million during 2001, 2000 and 1999, respectively At December 31, 2001, minimum annual rental commitments under noncancellable operating leases were $311 million m 2002, $24 7 million m 2003, $15 1 million m 2004, $12 2 million m 2005, $10 4 million in 2006 and $18 3 million thereafter NOTE 9: COMMON AND PREFERRED STOCK Common Stock At December 31, 2001, 2000 and 1999, 250,000,000 shares of Common stock were authorized of which 93,761,587, 93,413,244 and 94,199,620 shares were issued and outstanding at December 31,2001, 2000 and 1999, respectively During the year ended December 31, 2001, Cooper purchased 1,000,000 shares of treasury stock at an average price of $41 95 per share and 1,348,343 shares were issued primarily m connection with employee stock plans During the year ended December 31, 2000, Cooper purchased 1,138,500 shares of treasury stock at an average price of $34 52 per share and 352,124 shares were issued primarily in connection with employee stock plans During the year ended December 31, 1999, Cooper purchased 800,000 shares of treasury stock at an average price of $54 99 per share and 750,869 shares were issued primarily m connection with employee stock plans At December 31,2001, Cooper had 14,728,631 shares reserved for the Dividend Reinvestment Plan, grants and exercises of stock options, performance-based stock awards and subscriptions under the Employee Stock Purchase Plan and other plans Under the terms of the Dividend Reinvestment Plan, any holder of Common stock may elect to have cash dividends and up to $24,000 per year m cash payments mvested m Common stock without incurring any brokerage commissions or service charges Under a Shareholder Rights Plan adopted by the Board of Directors m 1997, share purchase Rights were declared as a dividend at the rate of one Right for each share of Common stock. Each Right entities the holder to buy one one-hundredth of a share of Series A Participating Preferred Stock at a purchase price of $225 per one onehundredth of a share or, m certain circumstances Common stock having a value of twice the purchase price Each Right becomes exercisable only m certain circumstances constituting a potential change of control on a basis considered madequate by the Board of Directors The Rights expire August 5, 2007 and, at Cooper's option, may be redeemed prior to expiration for $ 01 per Right Preferred Stock At December 31, 2001 and 2000, Cooper was authorized to issue 1,340,750 shares of Preferred stock with no par value, 10,000,000 shares of $2 00 par value Preferred stock and 2,821,079 shares of $1 00 par value Preferred stock At December 31, 2001 and 2000, no Preferred shares were issued or outstanding NOTE 10: STOCK OPTIONS AND EMPLOYEE STOCK PURCHASE PLAN Under Cooper stock option plans, officers, directors and key employees may be granted options to purchase Cooper's Common stock at no less than 100% ofthe market pace on the date the option is granted Options generally become exercisable ratably over a three-year period commencing one year from the date of grant and have a maximum term of ten years The plans also provide for the granting ofperformance-based stock awards and restricted stock awards to certain key executives F-14