Cooper Industries 10-Q 6 Aug 09 2009 Q2 Quarterly report Financial data

Document and Company Informatio

Document and Company Information (USD $)
	6 Months Ended Jun. 30, 2009	Jun. 30, 2008
Entity Registrant Name	Cooper Industries, Ltd.
Entity Central Index Key	0001141982
Document Type	10-Q
Document Period End Date	2009-06-30
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Public Float		$6,848,463,983
Common Class A
Entity Common Stock, Shares Outstanding Held by Public	166,739,478
Entity Common Stock, Shares Outstanding Held by Entity's Wholly-Owned Subsidiaries	36,533,714
Common Class B
Entity Common Stock, Shares Outstanding Held by Entity's Wholly-Owned Subsidiaries	105,420,258

Consolidated Income Statements

Consolidated Income Statements (USD $)
In Millions, except Per Share data	3 Months Ended Jun. 30, 2009	3 Months Ended Jun. 30, 2008	6 Months Ended Jun. 30, 2009	6 Months Ended Jun. 30, 2008
Revenues	1269.8	1724.3	2526.6	3270.4
Cost of sales	885	1155.9	1769.8	2178.1
Selling and administrative expenses	249.4	314.4	506.3	615.9
Restructuring charges	10.4	7.6	19.2	7.6
Operating earnings	125	246.4	231.3	468.8
Interest expense, net	16.3	18.3	31.5	33.2
Income from continuing operations before income taxes	108.7	228.1	199.8	435.6
Income taxes expense	19.4	66.2	29.3	120.3
Income from continuing operations	89.3	161.9	170.5	315.3
Income related to discontinued operations, net of income taxes	0	0	18.9	0
Net income	89.3	161.9	189.4	315.3
Basic:
Income from continuing operations	0.53	0.93	1.02	1.79
Income from discontinued operations	$0	$0	0.11	$0
Net income	0.53	0.93	1.13	1.79
Diluted:
Income from continuing operations	0.53	0.92	1.01	1.77
Income from discontinued operations	$0	$0	0.11	$0
Net income	0.53	0.92	1.12	1.77
Cash dividends declared per common share	0.25	0.25	0.5	0.5

Consolidated Balance Sheets

Consolidated Balance Sheets (USD $)
In Millions	Jun. 30, 2009	Dec. 31, 2008
ASSETS
Cash and cash equivalents	450.2	258.8
Investments	12.6	21.9
Receivables	901.5	1011.4
Inventories	547.2	641.8
Current discontinued operations receivable	13.4	17.5
Deferred income taxes and other current assets	196.3	246.5
Total current assets	2121.2	2197.9
Property, plant and equipment, less accumulated depreciation	728.9	728.2
Goodwill	2645.9	2567.3
Long-term discontinued operations receivable	166.6	174.8
Deferred income taxes and other noncurrent assets	468.1	496.7
Total assets	6130.7	6164.9
LIABILITIES AND SHAREHOLDERS' EQUITY
Short-term debt	11.8	25.6
Accounts payable	409.8	492.5
Accrued liabilities	537.8	618.7
Current discontinued operations liability	50.2	50.4
Current maturities of long-term debt	275	275
Total current liabilities	1284.6	1462.2
Long-term debt	924.7	932.5
Postretirement benefits other than pensions	69.6	71.2
Long-term discontinued operations liability	754.8	764.7
Other long-term liabilities	326.9	326.9
Total liabilities	3360.6	3557.5
Common stock, $.01 par value	1.7	1.7
Capital in excess of par value	0	0
Retained earnings	3042.7	2935.4
Accumulated other nonowner changes in equity	-274.3	-329.7
Total shareholders' equity	2770.1	2607.4
Total liabilities and shareholders' equity	6130.7	6164.9

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) (USD $)
	Jun. 30, 2009	Dec. 31, 2008
Common stock, par value	0.01	0.01

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (USD $)
In Millions	6 Months Ended Jun. 30, 2009		6 Months Ended Jun. 30, 2008
Cash flows from operating activities:
Net income	189.4		315.3
Adjust: Income related to discontinued operations	-18.9		0
Income from continuing operations	170.5		315.3
Adjustments to reconcile to net cash provided by operating activities:
Depreciation and amortization	71.2		70.3
Deferred income taxes	-9.3		4.9
Excess tax benefits from stock options and awards	2.1		-3.4
Restructuring charges	19.2		7.6
Changes in assets and liabilities:
Receivables	128.1	[1]	-122.2	[1]
Inventories	108.8	[1]	-63.4	[1]
Accounts payable and accrued liabilities	-194.3	[1]	-32.9	[1]
Discontinued operations assets and liabilities, net	33	[1]	12.2	[1]
Other assets and liabilities, net	46.8	[1]	76.9	[1]
Net cash provided by operating activities	376.1		265.3
Cash flows from investing activities:
Proceeds from short-term investments	9.3		41.3
Proceeds from cash restricted for business acquisitions	0		290.1
Capital expenditures	-55.9		-57.9
Cash paid for acquired businesses	-22.2		-269.6
Proceeds from sales of property, plant and equipment and other	1.1		1
Net cash provided by (used in) investing activities	-67.7		4.9
Cash flows from financing activities:
Proceeds from issuance of debt	0		297.6
Debt issuance costs	0		-0.5
Proceeds from debt derivatives	0		0.5
Repayments of debt	-21.9		-299.1
Dividends	(84)		-82.8
Purchases of common shares	(26)		-282.9
Excess tax benefits from stock options and awards	-2.1		3.4
Proceeds from exercise of stock options and other	3.5		10.8
Net cash used in financing activities	-130.5		(353)
Effect of exchange rate changes on cash and cash equivalents	13.5		4.7
Increase (decrease) in cash and cash equivalents	191.4		-78.1
Cash and cash equivalents, beginning of period	258.8		232.8
Cash and cash equivalents, end of period	450.2		154.7
[1]Net of the effects of acquisitions and translation.

Accounting Policies

Accounting Policies
	6 Months Ended Jun. 30, 2009 USD / shares
Accounting Policies [Abstract]
Accounting Policies	Note 1. Accounting Policies Basis of Presentation - The consolidated financial statements of Cooper Industries, Ltd., a Bermuda company (Cooper), have been prepared in accordance with generally accepted accounting principles in the United States. The financial information presented as of any date other than December31 has been prepared from the books and records without audit. Financial information as of December31 has been derived from Coopers audited financial statements, but does not include all disclosures required by generally accepted accounting principles. In the opinion of management, all adjustments, consisting only of normal recurring adjustments, necessary for a fair presentation of the financial information for the periods indicated, have been included. Further, in connection with preparation of the consolidated financial statements and in accordance with the recently issued Statement of Financial Accounting Standards No.165, Subsequent Events (SFAS No.165), Cooper evaluated subsequent events after the balance sheet date of June30, 2009 through August6, 2009. For additional information regarding Coopers accounting policies, refer to the Consolidated Financial Statements and related notes for the year ended December31, 2008 included in PartIV of Coopers 2008 Annual Report on Form 10-K. In September2006, the Financial Accounting Standards Board (FASB) issued Statement of Financial Accounting Standards No.157, Fair Value Measurements (SFAS No.157). SFAS No.157 provides enhanced guidance for using fair value to measure assets and liabilities. SFAS No.157 clarifies the principle that fair value should be based on the assumptions market participants would use when pricing assets or liabilities and establishes a hierarchy that prioritizes the information used to develop those assumptions. SFAS No.157 applies whenever other standards require (or permit) assets or liabilities to be measured at fair value. On February12, 2008, the FASB delayed the effective date of SFAS No.157 for nonfinancial assets and nonfinancial liabilities, except for items that are recognized or disclosed at fair value in the financial statements on a recurring basis (at least annually). Cooper implemented the provisions of SFAS No. 157 as of January1, 2008 for those assets and liabilities not subject to the deferral described above. The implementation of SFAS No.157 as of January1, 2009 for assets and liabilities previously subject to the deferral described above did not have a material impact on the Companys results of operations, financial position or cash flows. See Note 15 of the Notes to the Consolidated Financial Statements. In December2007, the FASB issued Statement of Financial Accounting Standards No.141(R), Business Combinations (SFAS No.141(R)). SFAS No.141(R) provides enhanced guidance related to the measurement of identifiable assets acquired, liabilities assumed and disclosure of information related to business combinations and their effect on Cooper. This Statement, together with the International Accounting Standards Boards (IASB) IFRS 3, Business Combinations, completes a joint effort by the FASB and IASB to improve financial rep

Restructuring Charges

Restructuring Charges
	6 Months Ended Jun. 30, 2009 USD / shares
Restructuring Charges Disclosure [Abstract]
Restructuring Charges	Note 2. Restructuring Charges During the fourth quarter of 2008, Cooper committed to employment reductions to appropriately size Coopers workforce to current and anticipated market conditions and to downsize a domestic Tools segment manufacturing operation. Cooper recorded a $35.7million charge in the fourth quarter of 2008 related to these actions, $25.5million of which relates to the Electrical Products segment and $10.2million relates to the Tools segment. A total of 1,314 hourly and 930 salaried positions are being eliminated as a result of the fourth quarter 2008 restructuring actions to reduce Coopers workforce. During the first six months of 2009, Cooper committed to additional employment reductions and certain facility closures as a result of managements ongoing assessment of its hourly and salary workforce and its required production capacity in consideration of current and anticipated market conditions and demand levels. Cooper recorded charges of $19.2million in the first six months of 2009 related to these actions, $11.2million of which relates to the Electrical Products segment and $6.3million relates to the Tools segment. The remaining $1.7million relates to reductions in Coopers corporate staff. A total of 559 hourly and 568 salaried positions are being eliminated as a result of the 2009 restructuring actions to reduce Coopers workforce. The following table reflects activity in the accrued liability related to the restructuring actions. Contract Involuntary Employee Termination Termination Benefits and Other Headcount Dollars Exit Costs ($ in millions) Balance at December31, 2008 886 $ 28.0 $ 1.7 2009 restructuring actions 1,127 17.9 1.3 Headcount reductions or costs incurred (1,951 ) (34.0 ) (1.7 ) Balance at June30, 2009 62 $ 11.9 $ 1.3 The workforce reductions, contract termination and other exit costs and the related cash payments associated with the accrual balances at June30, 2009 will be substantially completed in 2009. As part of the restructuring actions, Cooper has approved the closure of nine factories and warehouses, five of which have been completed at the end of the second quarter 2009. Of the remaining facility closures, two are expected to be completed by the end of 2009 with the remaining two factory closures expected to be substantially completed in the first half of 2010. Cooper expects to incur incremental restructuring charges in the range of approximately $15 to $21million associated with the completion of planned restructuring activities as the actions are implemented over the next year.

Goodwill

Goodwill
	6 Months Ended Jun. 30, 2009 USD / shares
Goodwill [Abstract]
Goodwill	Note 3. Goodwill Cooper had goodwill of $2.65billion and $2.57billion at June30, 2009 and December31, 2008, respectively. Under Statement of Financial Accounting Standards No.142, Goodwill and Other Intangible Assets (SFAS No.142), goodwill is subject to an annual impairment test. Cooper has designated January 1 as the date of its annual goodwill impairment test. If an event occurs, or circumstances change, that would more likely than not reduce the fair value of a reporting unit below its carrying value; an interim impairment test would be performed between annual tests. Cooper has identified eight reporting units for which goodwill is tested for impairment. The results of step one of the goodwill impairment tests as of January1, 2009 did not require the completion of step two of the test for any reporting unit.

Stock Based Compensation

Stock Based Compensation
	6 Months Ended Jun. 30, 2009 USD / shares
Stock-Based Compensation [Abstract]
Stock-Based Compensation	Note 4. Stock-Based Compensation Cooper has a share-based compensation plan known as the Amended and Restated Stock Incentive Plan (the Plan). The Plan provides for the granting of stock options, performance-based share awards and restricted stock units. Since the original Plans inception in 1996, the aggregate number of shares authorized under the Plan is 41million. As of June30, 2009, 5,899,009 shares were available for future grants under the Plan. Of the total shares available for future grants, 2,819,658 are available for grants of performance-based shares and restricted stock units. Total compensation expense for all share-based compensation arrangements under the Plan was $14.0million and $18.5million for the six months ended June30, 2009 and 2008, respectively. The total income tax benefit recognized in the income statement for all share-based compensation arrangements under the Plan was $4.8million and $6.4million for the six months ended June30, 2009 and 2008, respectively. During the six months ended June30, 2009, Cooper granted 2,414,725 stock option awards, 370,560 performance-based shares and 88,660 restricted stock units.

Acquisitions

Acquisitions
	6 Months Ended Jun. 30, 2009 USD / shares
Acquisitions [Abstract]
Acquisitions	Note 5. Acquisitions Cooper completed three acquisitions and acquired certain intellectual property rights in the Electrical Products segment during the six months ended June30, 2009. These acquisitions were selected because of their strategic fit with existing Cooper businesses. Cooper makes an initial allocation of the purchase price as of the date of acquisition, based on its estimate of the fair value of the assets and liabilities acquired. Cooper continues to evaluate the acquisition date fair value of the assets and liabilities acquired and will adjust the allocations as additional information relative to the businesses becomes available for up to one year from the acquisition date. This includes finalization of amount by major asset class and weighted-average amortization period for other intangible assets acquired. The acquisition date fair value of the total consideration for the 2009 acquisitions was approximately $25.0million. The acquisitions resulted in the recognition of preliminary estimated aggregate goodwill of $14.0million, substantially all of which is not expected to be deductible for tax purposes. Total cash consideration paid for acquisitions during the first six months of 2009 was $22.2million, net of cash acquired. The results of operations of acquisitions are included in the consolidated income statement since the respective acquisition dates. Pro-forma income from continuing operations and diluted earnings per share for the six months ended June30, 2009 and 2008, assuming the acquisitions had occurred at the beginning of the period, would not be materially different from reported results.

Inventories

Inventories
	6 Months Ended Jun. 30, 2009 USD / shares
Inventories [Abstract]
Inventories	Note 6. Inventories June 30, December 31, 2009 2008 (in millions) Raw materials $ 210.8 $ 239.3 Work-in-process 160.7 163.2 Finished goods 360.8 405.0 Perishable tooling and supplies 13.6 13.9 745.9 821.4 Allowance for excess and obsolete inventory (84.1 ) (77.0 ) Excess of current standard costs over LIFO costs (114.6 ) (102.6 ) Net inventories $ 547.2 $ 641.8

Contingencies

Contingencies
	6 Months Ended Jun. 30, 2009 USD / shares
Contingencies [Abstract]
Contingencies	Note 7. Contingencies Cooper and its subsidiaries are defendants or otherwise involved in a number of lawsuits in the ordinary course of business. Cooper estimates the range of liability related to pending litigation when management believes the amount and range of loss can be estimated. Cooper records its best estimate of a loss when the loss is considered probable. When a liability is probable and there is a range of estimated loss with no best estimate in the range, Cooper records the minimum estimated liability related to the lawsuits or claims. As additional information becomes available, Cooper assesses the potential liability related to pending litigation and claims and revises its estimates. Due to uncertainties related to the resolution of lawsuits and claims, the ultimate outcome may differ from the estimates. In the opinion of management and based on liability accruals provided, the ultimate exposure with respect to these pending lawsuits and claims is not expected to have a material adverse effect on Coopers consolidated financial position or cash flows, although they could have a material adverse effect on the results of operations for a particular reporting period. The U.S. Federal Government has enacted legislation intended to deny certain federal funding and government contracts to U.S. companies that reincorporate outside the United States, including Section745 of the Consolidated Appropriations Act, 2008 (Public Law 110-161), Section 724(c) of the Transportation, Treasury, Housing and Urban Development, the Judiciary, and Independent Agencies Appropriations Act, 2006 (Public Law 109-115), and 6 U.S.C. 395(b) of The Homeland Security Act. Cooper has self-reported to the Department of Defense certain transactions aggregating approximately $8million with U.S. government entities which may be subject to the legislation. At the time of this filing, it is too early to determine whether any fines or penalties may be assessed against Cooper.

Debt

Debt
	6 Months Ended Jun. 30, 2009 USD / shares
Debt [Abstract]
Debt	Note 8. Debt At June30, 2009, Cooper has $11.8million of short-term debt. At June30, 2009 Cooper had no commercial paper borrowings outstanding. At June30, 2009, Cooper has U.S. committed credit facilities that total $513million, of which $13million matures in September2009 and $500million matures in November2009. Cooper is currently negotiating a new $350million committed credit facility with a term of three years and anticipates the new facility to be in place in August2009. However, there can be no assurance that a new facility will be negotiated in that time, or at all, and it is likely that the terms of the new facility will not be as attractive as in the existing facility that expires in November2009.

Shareholders Equity

Shareholders Equity
	6 Months Ended Jun. 30, 2009 USD / shares
Shareholders' Equity [Abstract]
Shareholders' Equity	Note 9. Shareholders Equity At June30, 2009, 166,739,478 ClassA common shares, $.01 par value were issued and outstanding (excluding 36,533,714 ClassA common shares held by wholly-owned subsidiaries) compared to 166,908,287 ClassA common shares, $.01 par value (excluding 37,362,915 ClassA common shares held by wholly-owned subsidiaries) at December31, 2008. During the six months ended June30, 2009, Cooper issued 1,093,991 ClassA common shares primarily in connection with employee incentive and benefit plans and Coopers dividend reinvestment program. During the six months ended June30, 2009, Cooper and its wholly-owned subsidiaries purchased 1,262,800 ClassA common shares for $26.0 million under Coopers share repurchase plans. The share purchases are recorded by Coopers wholly-owned subsidiaries as an investment in its parent company that is eliminated in consolidation. A wholly-owned subsidiary owns all of the issued and outstanding ClassB common shares. During the first quarter of 2009, Cooper repurchased 4.2million ClassB common shares from its wholly-owned subsidiary. The subsidiarys investment in the ClassB common shares is eliminated in consolidation. If at any time a dividend is declared and paid on the ClassA common shares, a like dividend shall be declared and paid on the ClassB common shares in an equal amount per share. On February12, 2008, Coopers Board of Directors authorized the purchase of ten million shares of common stock. On February9, 2009, Cooper announced that the Board of Directors authorized the repurchase of ten million shares of common stock in addition to the remaining February12, 2008 authorization. In the six months ended June30, 2009, Cooper repurchased the one million shares intended to offset dilution from share issuances under equity compensation plans, as well as 262,800 additional shares under the Cooper Board of Directors authorizations discussed above. Cooper may continue to repurchase shares under these authorizations from time to time during 2009. The decision whether to do so will depend on the favorability of market conditions, as well as potential cash requirements for acquisitions and debt repayments. As of June30, 2009, 12,766,635 shares remain available to be repurchased under the authorizations by the Board of Directors.

Segment Information

Segment Information
	6 Months Ended Jun. 30, 2009 USD / shares
Segment Information [Abstract]
Segment Information	Note 10. Segment Information Revenues Three Months Ended Six Months Ended June 30, June 30, 2009 2008 2009 2008 (in millions) Electrical Products $ 1,131.1 $ 1,510.0 $ 2,261.6 $ 2,871.6 Tools 138.7 214.3 265.0 398.8 Total revenues $ 1,269.8 $ 1,724.3 $ 2,526.6 $ 3,270.4 Operating Earnings Three Months Ended Six Months Ended June 30, June 30, 2009 2008 2009 2008 (in millions) Electrical Products $ 153.5 $ 259.0 $ 293.5 $ 482.5 Tools 2.9 22.3 (1.0 ) 39.5 Segment operating earnings 156.4 281.3 292.5 522.0 General Corporate expense 21.0 27.3 42.0 45.6 Restructuring charges 10.4 7.6 19.2 7.6 Total operating earnings 125.0 246.4 231.3 468.8 Interest expense, net 16.3 18.3 31.5 33.2 Income from continuing operations before income taxes $ 108.7 $ 228.1 $ 199.8 $ 435.6 General Corporate expense includes currency losses primarily related to tax reorganizations and financing the MTL acquisition of $5.4million and $0.3million in the three and six month periods ended June30, 2008, respectively.

Pension and Other Postretiremen

Pension and Other Postretirement Benefits
	6 Months Ended Jun. 30, 2009 USD / shares
Pension and Other Postretirement Benefits [Abstract]
Pension and Other Postretirement Benefits	Note 11. Pension and Other Postretirement Benefits Pension Benefits Three Months Ended Six Months Ended June 30, June 30, 2009 2008 2009 2008 (in millions) Components of net periodic benefit cost: Service cost $ 0.9 $ 0.9 $ 1.7 $ 1.9 Interest cost 10.4 10.6 20.8 21.1 Expected return on plan assets (9.8 ) (12.5 ) (19.5 ) (25.0 ) Amortization of prior service cost (0.7 ) (0.6 ) (1.3 ) (1.1 ) Recognized actuarial loss 5.7 2.4 11.3 4.8 Net periodic benefit cost $ 6.5 $ 0.8 $ 13.0 $ 1.7 Other Postretirement Benefits Three Months Ended Six Months Ended June 30, June 30, 2009 2008 2009 2008 (in millions) Components of net periodic benefit cost: Interest cost $ 1.2 $ 1.3 $ 2.4 $ 2.6 Amortization of prior service cost (0.5 ) (0.5 ) (1.0 ) (1.0 ) Recognized actuarial gain (0.8 ) (0.6 ) (1.6 ) (1.2 ) Net periodic benefit cost (gain) $ (0.1 ) $ 0.2 $ (0.2 ) $ 0.4

Income Taxes

Income Taxes
	6 Months Ended Jun. 30, 2009 USD / shares
Income Taxes [Abstract]
Income Taxes	Note 12. Income Taxes The effective tax rate was 14.7% for the six months ended June30, 2009 and 27.6% for the six months ended June30, 2008. Cooper reduced income taxes expense by $8.4million and $4.6million in the first six months of 2009 and 2008, respectively, for discrete tax items primarily related to foreign taxes. Excluding the impacts of the discrete items, Coopers effective tax rate would have been 18.9% for the six months ended June30, 2009 and 28.7% for the first six months of 2008. The decrease in Coopers 2009 effective tax rate compared to 2008, adjusted for the aforementioned discrete items, is primarily related to a decrease in taxable earnings in 2009 without a corresponding decrease in projected tax benefits. Cooper has unrecognized gross tax benefits of $32.1million at June30, 2009. Approximately $24.9million of unrecognized tax benefits, if recognized, would favorably impact the effective tax rate. Cooper believes it is reasonably possible that additional tax benefits in the range of approximately $1 to $5million could be recognized during the next 12months as audits close and statutes expire. In June2009, the Internal Revenue Service completed its examination of Coopers 2007 Federal Tax Return and issued a notice of assessment in the amount of $16million. The IRS challenged Coopers intercompany pricing with a foreign affiliate. On July15, 2009, Cooper filed its protest for this assessment. While the outcome of the proceedings with the Internal Revenue Service cannot be predicted with certainty, management believes that it is more likely than not that its tax position will prevail. In June2008, the German Tax Authorities issued a proposed audit finding related to a 2004 reorganization that was treated as a non-taxable event. Cooper believes that the reorganization was properly reflected on its German income tax returns in accordance with applicable tax laws and regulations in effect during the period involved. Cooper is preparing a response related to the proposed audit finding and will challenge the proposed finding vigorously. While the outcome of the proceedings with the German Tax Authorities cannot be predicted with certainty, management believes that it is more likely than not that its tax position related to the 2004 reorganization will prevail. If the proposed audit finding is upheld, it would require Cooper to pay German tax of approximately 58million, which would be available for credit in the United States, plus accrued interest. The Internal Revenue Service has completed its examination of Coopers 2007 Federal income tax return and Cooper is under examination by various United States State and Local taxing authorities, as well as various taxing authorities in other countries. Cooper is no longer subject to U.S. Federal income tax examinations by tax authorities for years prior to 2007, and with few exceptions, Cooper is no longer subject to State and Local, or non-U.S. income tax examinations by tax authorities for years before 2000. Cooper fully cooperates with all audits, but defends existing positions vigorously. These audits are in various stages of completion. To provide for potentia

Net Income Per Common Share

Net Income Per Common Share
	6 Months Ended Jun. 30, 2009 USD / shares
Net Income Per Common Share [Abstract]
Net Income Per Common Share	Note 13. Net Income Per Common Share Three Months Ended Six Months Ended June 30, June 30, 2009 2008 2009 2008 (in millions) Basic: Income from continuing operations $ 89.3 $ 161.9 $ 170.5 $ 315.3 Income from discontinued operations 18.9 Net income applicable to common stock $ 89.3 $ 161.9 $ 189.4 $ 315.3 Weighted average common shares outstanding 166.9 174.3 167.1 175.7 Diluted: Income from continuing operations $ 89.3 $ 161.9 $ 170.5 $ 315.3 Income from discontinued operations 18.9 Net income applicable to common stock $ 89.3 $ 161.9 $ 189.4 $ 315.3 Weighted average common shares outstanding 166.9 174.3 167.1 175.7 Incremental shares from assumed conversions: Options, performance-based stock awards and other employee awards 1.1 2.2 1.0 2.2 Weighted average common shares and common share equivalents 168.0 176.5 168.1 177.9 Options and employee awards are not considered in the calculations if the effect would be antidilutive. Out of the money options and employee awards of 7.8million and 3.2million shares were excluded in the six months ended June30, 2009 and 2008, respectively.

Net Income and Other Nonowner C

Net Income and Other Nonowner Changes in Equity
	6 Months Ended Jun. 30, 2009 USD / shares
Net Income and Other Nonowner Changes in Equity [Abstract]
Net Income and Other Nonowner Changes in Equity	Note 14. Net Income and Other Nonowner Changes in Equity The components of net income and other nonowner changes in equity, net of related taxes, were as follows: Three Months Ended Six Months Ended June 30, June 30, 2009 2008 2009 2008 (in millions) Net income $ 89.3 $ 161.9 $ 189.4 $ 315.3 Foreign currency translation gains 69.4 14.0 46.5 23.7 Change in fair value of derivatives 4.2 (0.5 ) 4.7 10.0 Pension and postretirement benefit plans 2.3 0.4 4.2 0.9 Net income and other nonowner changes in equity $ 165.2 $ 175.8 $ 244.8 $ 349.9

Financial Instruments and Hedgi

Financial Instruments and Hedging Activities, Concentrations of Credit Risk and Fair Value of Financial Instruments
	6 Months Ended Jun. 30, 2009 USD / shares
Financial Instruments and Hedging Activities, Concentrations of Credit Risk and Fair Value of Financial Instruments [Abstract]
Financial Instruments and Hedging Activities, Concentrations of Credit Risk and Fair Value of Financial Instruments	Note 15. Financial Instruments and Hedging Activities, Concentrations of Credit Risk and Fair Value of Financial Instruments Financial Accounting Standards No.133, Accounting for Derivative Instruments and Hedging Activities (SFAS No.133), as amended, requires that all derivatives be recognized as assets and liabilities and measured at fair value. For derivative instruments that are not designated as hedges, the gain or loss on the derivative is recognized in earnings currently. A derivative instrument may be designated as a hedge of the exposure to changes in the fair value of an asset or liability or variability in expected future cash flows if the hedging relationship is expected to be highly effective in offsetting changes in fair value or cash flows attributable to the hedged risk during the period of designation. If a derivative is designated as a fair value hedge, the gain or loss on the derivative and the offsetting loss or gain on the hedged asset, liability or firm commitment is recognized in earnings. For derivative instruments designated as a cash flow hedge, the effective portion of the gain or loss on the derivative instrument is reported as a component of accumulated nonowner changes in equity and reclassified into earnings in the same period that the hedged transaction affects earnings. The ineffective portion of the gain or loss is immediately recognized in earnings. Hedge accounting is discontinued prospectively when (1)it is determined that a derivative is no longer effective in offsetting changes in the fair value or cash flows of a hedged item; (2)the derivative is sold, terminated or exercised; (3)the hedged item no longer meets the definition of a firm commitment; or (4)it is unlikely that a forecasted transaction will occur within two months of the originally specified time period. When hedge accounting is discontinued because it is determined that the derivative no longer qualifies as an effective fair-value hedge, the derivative will continue to be carried on the balance sheet at its fair value, and the hedged asset or liability will no longer be adjusted for changes in fair value. When hedge accounting is discontinued because a hedged item no longer meets the definition of a firm commitment, the derivative will continue to be carried on the balance sheet at its fair value, and any asset or liability that was recorded pursuant to recognition of the firm commitment will be removed from the balance sheet and recognized as a gain or loss currently in earnings. When hedge accounting is discontinued because it is probable that a forecasted transaction will not occur within two months of the originally specified time period, the derivative will continue to be carried on the balance sheet at its fair value, and gains and losses reported in accumulated nonowner changes in equity will be recognized immediately in earnings. As a result of having sales, purchases and certain intercompany transactions denominated in currencies other than the functional currencies of Coopers businesses, Cooper is exposed to the effect of currency exchange rate changes on its cash flows and earnings. Cooper enters into currency

Discontinued Operations Receiva

Discontinued Operations Receivable and Liability
	6 Months Ended Jun. 30, 2009 USD / shares
Discontinued Operations Receivable and Liability [Abstract]
Discontinued Operations Receivable and Liability	Note 16. Discontinued Operations Receivable and Liability Discontinued Operations Liability In October1998, Cooper sold its Automotive Products business to Federal-Mogul Corporation (Federal-Mogul). These discontinued businesses (including the Abex Friction product line obtained from Pneumo-Abex Corporation (Pneumo) in 1994) were operated through subsidiary companies, and the stock of those subsidiaries was sold to Federal-Mogul pursuant to a Purchase and Sale Agreement dated August17, 1998 (1998 Agreement). In conjunction with the sale, Federal-Mogul indemnified Cooper for certain liabilities of these subsidiary companies, including liabilities related to the Abex Friction product line and any potential liability that Cooper may have to Pneumo pursuant to a 1994 Mutual Guaranty Agreement between Cooper and Pneumo. On October 1, 2001, Federal-Mogul and several of its affiliates filed a Chapter11 bankruptcy petition. The Bankruptcy Court for the District of Delaware confirmed Federal-Moguls plan of reorganization and Federal-Mogul emerged from bankruptcy in December2007. As part of Federal-Moguls Plan of Reorganization, Cooper and Federal-Mogul reached a settlement agreement that was subject to approval by the Bankruptcy Court resolving Federal-Moguls indemnification obligations to Cooper. As discussed further below, on September30, 2008, the Bankruptcy Court issued its final ruling denying Coopers participation in the proposed Federal-Mogul 524(g) trust resulting in implementation of the previously approved Plan B Settlement. As part of its obligation to Pneumo for any asbestos-related claims arising from the Abex Friction product line (Abex Claims), Cooper has rights, confirmed by Pneumo, to significant insurance for such claims. Based on information provided by representatives of Federal-Mogul and recent claims experience, from August28, 1998 through June30, 2009, a total of 147,011 Abex Claims were filed, of which 123,983 claims have been resolved leaving 23,028 Abex Claims pending at June30, 2009. During the six months ended June30, 2009, 836 claims were filed and 1,496 claims were resolved. Since August28, 1998, the average indemnity payment for resolved Abex Claims was $2,064 before insurance. A total of $155.4million was spent on defense costs for the period August28, 1998 through June30, 2009. Historically, existing insurance coverage has provided 50% to 80% of the total defense and indemnity payments for Abex Claims. However, insurance recovery is currently at a lower percentage (approximately 30%) due to exhaustion of primary layers of coverage and litigation with certain excess insurers. 2005 2007 In December2005, Cooper reached an initial agreement in negotiations with the representatives of Federal-Mogul, its bankruptcy committees and the future claimants (the Representatives) regarding Coopers participation in Federal Moguls proposed 524(g) asbestos trust. By participating in this trust, Cooper would have resolved its liability for asbestos claims arising from Coopers former Abex Friction Products business. The proposed settlement agreement was subject to court approval and certain other approvals. Future cl

Consolidating Financial Informa

Consolidating Financial Information
	6 Months Ended Jun. 30, 2009 USD / shares
Consolidating Financial Information [Abstract]
Consolidating Financial Information	Note 17. Consolidating Financial Information Cooper and certain of its principal operating subsidiaries (the Guarantors) fully and unconditionally guarantee, on a joint and several basis, the registered debt securities of Cooper Industries, LLC and Cooper US, Inc. The following condensed consolidating financial information is included so that separate financial statements of Cooper Industries, LLC, Cooper US, Inc. or the Guarantors are not required to be filed with the Securities and Exchange Commission. The consolidating financial statements present investments in subsidiaries using the equity method of accounting. Intercompany investments in the ClassA and ClassB common shares are accounted for using the cost method. Consolidating Income Statements Three Months Ended June30, 2009 (in millions) Cooper Cooper Industries, US, Other Consolidating Cooper LLC Inc. Guarantors Subsidiaries Adjustments Total Revenues $ $ $ $ 748.9 $ 631.7 $ (110.8 ) $ 1,269.8 Cost of sales (0.7 ) 535.0 461.5 (110.8 ) 885.0 Selling and administrative expenses 4.9 2.6 14.5 118.6 110.4 (1.6 ) 249.4 Restructuring charges 0.1 2.8 7.5 10.4 Interest expense, net (0.1 ) 4.0 12.1 0.4 (0.1 ) 16.3 Equity in earnings of subsidiaries, net of tax 135.2 (5.3 ) 60.3 18.3 59.6 (268.1 ) Intercompany income (expense) (7.5 ) 6.5 8.5 (34.5 ) 62.1 (35.1 ) Income (loss)from continuing operations before income taxes 122.9 (4.7 ) 42.1 75.9 174.1 (301.6 ) 108.7 Income tax expense (benefit) 1.0 (17.5 ) 22.4 13.5 19.4 Income (loss)from continuing operations 122.9 (5.7 ) 59.6 53.5 160.6 (301.6 ) 89.3 Income from discontinued operations, net of tax Net income (loss) $ 122.9 $ (5.7 ) $ 59.6 $ 53.5 $ 160.6 $ (301.6 ) $ 89.3 Consolidating Income Statements Three Months Ended June30, 2008 (in millions) Cooper Cooper Industries, US, Other Consolidating Cooper LLC Inc. Guarantors Subsidiaries Adjustments Total Revenues $ $ $ $ 1,004.1 $ 822.7 $ (102.5 ) $ 1,724.3 Cost of sales 0.1 (0.1 ) 1.9 705.2 551.3 (102.5 ) 1,155.9 Selling and administrative expenses 3.3 3.5 20.3 142.5 149.9 (5.1 ) 314.4 Restructuring charges 7.6 7.6 Interest expense,