2.2.0.25falsefalse0202 - Disclosure - Contribution of Tools Business Assets and Liabilities to Joint Venturetruefalsefalse1falsefalseUSDfalsefalse1/1/2010 - 12/31/2010
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<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>NOTE 2: CONTRIBUTION OF TOOLS BUSINESS ASSETS AND LIABILITIES TO JOINT VENTURE</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     On March 26, 2010, Cooper announced that it entered into a Framework Agreement with Danaher
Corporation to create a joint venture combining Cooper’s Tools business with certain Tools
businesses from Danaher’s Tools and Components Segment (the “Joint Venture”). On July 6, 2010,
Cooper announced the completion of the Joint Venture, named Apex Tool Group, LLC. Cooper and
Danaher each own a 50% interest in the Joint Venture, have equal representation on its Board of
Directors and have a 50% voting interest in the Joint Venture. At completion of the transaction in
July, Cooper deconsolidated the Tools business assets and liabilities contributed to the Joint
Venture and recognized Cooper’s 50% ownership interest as an equity investment. Beginning in the
third quarter of 2010, Cooper recognizes its proportionate share of the Joint Venture’s operating
results using the equity method. Recording the investment at its fair value of $480 million
resulted in a pretax loss of $134.5 million related to the transaction. The pretax loss related to
the formation of the Joint Venture included a $26.5 million gain from the contribution of the Tools
business net assets resulting from the difference in the fair value of the equity investment and
the carrying value of the net assets being contributed and transaction related costs. This gain
was offset by the write-off of approximately $161.0 million (approximately $104.4 million net of
the associated tax effect) from recognition of the accumulated other nonowner changes in equity
related to the Tools business, primarily related to cumulative currency translation losses. The
Tools business assets and liabilities contributed to the Joint Venture in July 2010 have been
reclassified to separate lines in the accompanying December 31, 2009 consolidated balance sheet.
Because the Tools business assets and liabilities to be contributed to the Joint Venture were
considered held for sale at June 30, 2010, Cooper recognized the $134.5 million loss in the second
quarter of 2010 by recognizing $126.1 million of the cumulative currency translation losses
included in other nonowner changes in equity (approximately $82.0 million net of the associated tax
effect) and transaction related costs. In the third quarter of 2010 Cooper recognized the
remaining items previously deferred in accumulated other nonowner changes in equity which was
offset by the gain on the underlying net assets contributed. As a result, there was no impact to
the income statement in the third quarter of 2010 upon deconsolidation of the Tools business assets
and liabilities contributed to the Joint Venture.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The following table reflects the components of the Tools business assets and liabilities as of
June 30, 2010 and December 31, 2009.
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="76%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">June 30,</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">December 31,</td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">2010</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">2009</td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6">(in millions)</td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Receivables, less allowances
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">111.4</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">100.0</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Inventories
</div></td>
<td> </td>
<td> </td>
<td align="right">64.7</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">60.0</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Other current assets
</div></td>
<td> </td>
<td> </td>
<td align="right">12.5</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">15.6</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Property, plant and equipment, less accumulated depreciation
</div></td>
<td> </td>
<td> </td>
<td align="right">85.0</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">92.7</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Goodwill
</div></td>
<td> </td>
<td> </td>
<td align="right">303.8</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">304.9</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Other intangible assets, less accumulated amortization
</div></td>
<td> </td>
<td> </td>
<td align="right">0.6</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">0.7</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Other noncurrent assets
</div></td>
<td> </td>
<td> </td>
<td align="right">12.8</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">15.0</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Assets to be contributed to Tools joint venture
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">590.8</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">588.9</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Accounts payable
</div></td>
<td> </td>
<td> </td>
<td align="right">48.2</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">36.9</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Accrued liabilities
</div></td>
<td> </td>
<td> </td>
<td align="right">55.9</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">54.6</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Other long-term liabilities
</div></td>
<td> </td>
<td> </td>
<td align="right">41.6</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">48.6</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Liabilities to be contributed to Tools joint venture
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">145.7</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">140.1</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
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<div style="font-family: 'Times New Roman',Times,serif">
<div align="center" style="font-size: 10pt; margin-top: 0pt">
<b>
</b>
</div>
</div>
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