Consolidating Financial Information

9 Months Ended

Sep. 30, 2011

Consolidating Financial Information [Abstract]

Consolidating Financial Information

Note 16. Consolidating Financial Information

     Cooper Industries plc along with Cooper Industries, Ltd. and certain of Cooper’s principal operating subsidiaries (the “Guarantors”) fully and unconditionally guarantee, on a joint and several basis, the registered debt securities of Cooper US, Inc. The following condensed consolidating financial information is included so that the separate financial statements of 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.

Consolidating Income Statements
Three Months Ended September 30, 2011
(in millions)

	Cooper
	Industries			Cooper						Other			Consolidating
	plc			US, Inc.			Guarantors			Subsidiaries			Adjustments			Total
Revenues	$	—		$	—		$	886.5		$	688.3		$	(185.1	)	$	1,389.7
Cost of sales		—			(0.9	)		621.9			495.3			(185.1	)		931.2
Selling and administrative expenses		0.2			18.5			134.1			120.7			(4.3	)		269.2
Equity in (income) of Apex Tool Group, LLC		—			—			—			(16.0	)		—			(16.0	)
Interest expense, net		—			16.3			—			0.1			—			16.4
Equity in earnings of subsidiaries, net of tax		156.4			88.7			139.3			207.2			(591.6	)		—
Intercompany income (expense)		(0.3	)		(13.8	)		(37.2	)		51.3			—			—
Income (loss) before income taxes		155.9			41.0			232.6			346.7			(587.3	)		188.9
Income tax expense (benefit)		—			(20.6	)		33.7			15.6			—			28.7
Net income	$	155.9		$	61.6		$	198.9		$	331.1		$	(587.3	)	$	160.2

Consolidating Income Statements
Three Months Ended September 30, 2010
(in millions)

	Cooper
	Industries			Cooper						Other			Consolidating
	plc			US, Inc.			Guarantors			Subsidiaries			Adjustments			Total
Revenues	$	—		$	—		$	820.1		$	596.5		$	(175.9	)	$	1,240.7
Cost of sales		—			(0.9	)		579.4			419.0			(175.9	)		821.6
Selling and administrative expenses		0.5			17.7			124.5			96.3			(2.3	)		236.7
Equity in (income) of Apex Tool Group, LLC		—			—			—			(10.5	)		—			(10.5	)
Loss related to contribution of net assets to Apex Tool Group, LLC		—			—			—			(0.5	)		0.5			—
Restructuring charges		—			—			2.0			(0.5	)		—			1.5
Interest expense, net		—			12.3			—			—			—			12.3
Equity in earnings of subsidiaries, net of tax		73.1			74.5			139.6			42.2			(329.4	)		—
Intercompany income (expense)		(0.3	)		(19.2	)		(44.7	)		60.4			3.8			—
Income (loss) before income taxes		72.3			26.2			209.1			195.3			(323.8	)		179.1
Income tax expense (benefit)		—			(16.1	)		33.4			20.1			—			37.4
Net income	$	72.3		$	42.3		$	175.7		$	175.2		$	(323.8	)	$	141.7

Consolidating Income Statements
Nine Months Ended September 30, 2011
(in millions)

	Cooper
	Industries			Cooper						Other			Consolidating
	plc			US, Inc.			Guarantors			Subsidiaries			Adjustments			Total
Revenues	$	—		$	—		$	2,600.4		$	1,987.5		$	(551.6	)	$	4,036.3
Cost of sales		—			(2.7	)		1,822.5			1,413.8			(551.6	)		2,682.0
Selling and administrative expenses		—			92.4			389.7			342.8			(45.1	)		779.8
Equity in (income) of Apex Tool Group, LLC		—			—			—			(44.9	)		—			(44.9	)
Interest expense, net		—			50.0			—			(0.2	)		—			49.8
Equity in earnings of subsidiaries, net of tax		623.3			457.2			602.5			480.6			(2,163.6	)		—
Intercompany income (expense)		(1.0	)		(54.6	)		(121.5	)		176.8			0.3			—
Income (loss) from continuing operations before income taxes		622.3			262.9			869.2			933.4			(2,118.2	)		569.6
Income tax expense (benefit)		—			(72.1	)		105.5			58.8			—			92.2
Income from continuing operations		622.3			335.0			763.7			874.6			(2,118.2	)		477.4
Income from discontinued operations, net of tax		—			—			—			190.3			—			190.3
Net income	$	622.3		$	335.0		$	763.7		$	1,064.9		$	(2,118.2	)	$	667.7

Consolidating Income Statements
Nine Months Ended September 30, 2010
(in millions)

	Cooper
	Industries		Cooper						Other			Consolidating
	plc		US, Inc.			Guarantors			Subsidiaries			Adjustments			Total
Revenues	$	—	$	—		$	2,292.6		$	2,007.3		$	(493.9	)	$	3,806.0
Cost of sales		—		(0.7	)		1,626.2			1,406.1			(493.9	)		2,537.7
Selling and administrative expenses		2.6		80.1			352.8			334.8			(33.2	)		737.1
Equity in (income) of Apex Tool Group, LLC		—		—			—			(10.5	)		—			(10.5	)
Loss related to contribution of net assets to Apex Tool Group, LLC		—		2.4			—			131.6			0.5			134.5
Restructuring charges		—		—			3.8			4.2			—			8.0
Interest expense, net		—		36.7			—			(0.5	)		—			36.2
Equity in earnings of subsidiaries, net of tax		143.9		133.8			301.4			8.7			(587.8	)		—
Intercompany income (expense)		0.1		(60.2	)		(120.5	)		176.8			3.8			—
Income (loss) before income taxes		141.4		(44.9	)		490.7			327.1			(551.3	)		363.0
Income tax expense (benefit)		—		(53.7	)		84.5			30.3			—			61.1
Net income	$	141.4	$	8.8		$	406.2		$	296.8		$	(551.3	)	$	301.9

Consolidating Balance Sheets
September 30, 2011
(in millions)

	Cooper
	Industries			Cooper						Other			Consolidating
	plc			US, Inc.			Guarantors			Subsidiaries			Adjustments			Total
Cash and cash equivalents	$	78.0		$	118.6		$	8.1		$	225.9		$	—		$	430.6
Receivables, less allowances		0.2			0.5			266.8			674.8			—			942.3
Inventories		—			—			257.9			248.4			—			506.3
Current discontinued operations receivable		—			—			—			3.8			—			3.8
Other current assets		0.9			73.6			38.0			113.3			—			225.8
Total current assets		79.1			192.7			570.8			1,266.2			—			2,108.8
Property, plant and equipment, less accumulated depreciation		—			38.8			320.8			256.1			—			615.7
Investment in Apex Tool Group, LLC		—			—			—			531.2			—			531.2
Investment in subsidiaries		990.3			3,371.5			5,244.8			4,865.0			(14,471.6	)		—
Investment in parent		—			3,428.0			—			312.7			(3,740.7	)		—
Intercompany accounts receivable		81.4			—			1,102.3			983.4			(2,167.1	)		—
Intercompany notes receivable		9,564.5			564.9			6,956.3			4,003.6			(21,089.3	)		—
Goodwill		—			—			1,288.3			1,225.3			—			2,513.6
Other intangible assets, less accumulated amortization		—			—			85.3			287.3			—			372.6
Long-term discontinued operations receivable		—			—			—			5.1			—			5.1
Other noncurrent assets		0.5			(3.9	)		1.5			176.9			—			175.0
Total assets	$	10,715.8		$	7,592.0		$	15,570.1		$	13,912.8		$	(41,468.7	)	$	6,322.0
Short-term debt	$	—		$	—		$	—		$	6.2		$	—		$	6.2
Accounts payable		46.6			23.9			173.1			221.8			—			465.4
Accrued liabilities		1.3			59.8			212.6			255.6			(1.6	)		527.7
Current discontinued operations liability		—			—			—			9.4			—			9.4
Current maturities of long- term debt		—			—			—			0.7			—			0.7
Total current liabilities		47.9			83.7			385.7			493.7			(1.6	)		1,009.4
Long-term debt		—			1,419.4			—			1.5			—			1,420.9
Intercompany accounts payable		—			2,167.1			—			—			(2,167.1	)		—
Intercompany notes payable		419.1			1,815.1			1,849.0			17,006.1			(21,089.3	)		—
Long-term discontinued operations liability		—			—			—			40.5			—			40.5
Other long-term liabilities		—			34.8			203.2			160.2			—			398.2
Total liabilities		467.0			5,520.1			2,437.9			17,702.0			(23,258.0	)		2,869.0
Common stock		1.7			—			—			—			—			1.7
Subsidiary preferred stock		—			—			2,872.0			335.1			(3,207.1	)		—
Subsidiary common stock		—			—			9.2			257.8			(267.0	)		—
Capital in excess of par value		10,251.5			820.9			6,300.5			(8,320.4	)		(9,052.5	)		—
Retained earnings		624.2			1,377.9			4,089.5			4,106.6			(5,909.3	)		4,288.9
Treasury stock		(671.6	)		—			—			—			—			(671.6	)
Accumulated other non- owner changes in equity		43.0			(126.9	)		(139.0	)		(168.3	)		225.2			(166.0	)
Total shareholders’ equity		10,248.8			2,071.9			13,132.2			(3,789.2	)		(18,210.7	)		3,453.0
Total liabilities and shareholders’ equity	$	10,715.8		$	7,592.0		$	15,570.1		$	13,912.8		$	(41,468.7	)	$	6,322.0

Consolidating Balance Sheets
December 31, 2010
(in millions)

	Cooper
	Industries			Cooper						Other			Consolidating
	plc			US, Inc.			Guarantors			Subsidiaries			Adjustments			Total
Cash and cash equivalents	$	63.2		$	36.8		$	2.6		$	932.7		$	—		$	1,035.3
Receivables, less allowances		—			2.5			218.7			574.7			—			795.9
Inventories		—			—			234.7			204.2			—			438.9
Current discontinued operations receivable		—			—			—			13.0			—			13.0
Other current assets		0.6			72.4			30.7			103.8			—			207.5
Total current assets		63.8			111.7			486.7			1,828.4			—			2,490.6
Property, plant and equipment, less accumulated depreciation		—			42.1			316.8			249.4			—			608.3
Investment in Apex Tool Group, LLC		—			—			—			511.3			—			511.3
Investment in subsidiaries		3,035.5			2,923.6			4,608.9			741.6			(11,309.6	)		—
Investment in parent		—			3,428.1			—			312.7			(3,740.8	)		—
Intercompany accounts receivable		71.9			—			1,974.1			1,244.2			(3,290.2	)		—
Intercompany notes receivable		40.0			1,674.8			3,348.3			5,394.7			(10,457.8	)		—
Goodwill		—			—			1,288.3			1,068.2			—			2,356.5
Other intangible assets, less accumulated amortization		—			—			85.7			247.9			—			333.6
Long-term discontinued operations receivable		—			—			—			150.6			—			150.6
Other noncurrent assets		—			13.1			(178.2	)		382.8			—			217.7
Total assets	$	3,211.2		$	8,193.4		$	11,930.6		$	12,131.8		$	(28,798.4	)	$	6,668.6
Short-term debt	$	—		$	—		$	—		$	7.7		$	—		$	7.7
Accounts payable		44.7			20.3			201.8			195.8			—			462.6
Accrued liabilities		1.2			66.3			210.4			233.6			(1.4	)		510.1
Current discontinued operations liability		—			—			—			45.4			—			45.4
Current maturities of long-term debt		—			—			—			0.6			—			0.6
Total current liabilities		45.9			86.6			412.2			483.1			(1.4	)		1,026.4
Long-term debt		—			1,418.5			—			1.9			—			1,420.4
Intercompany accounts payable		—			3,290.2			—			—			(3,290.2	)		—
Intercompany notes payable		419.7			1,587.2			4,436.2			4,014.7			(10,457.8	)		—
Long-term discontinued operations liability		—			—			—			701.7			—			701.7
Other long-term liabilities.		—			103.6			54.5			155.9			—			314.0
Total liabilities		465.6			6,486.1			4,902.9			5,357.3			(13,749.4	)		3,462.5
Common stock		1.7			—			—			—			—			1.7
Subsidiary preferred stock		—			—			2,872.1			335.1			(3,207.2	)		—
Subsidiary common stock		—			—			9.2			257.8			(267.0	)		—
Capital in excess of par value		2,811.0			770.4			1,936.7			2,106.3			(7,624.4	)		—
Retained earnings		145.0			1,049.4			2,288.5			4,133.5			(3,957.7	)		3,658.7
Treasury stock		(288.6	)		—			—			—			—			(288.6	)
Accumulated other non- owner changes in equity		76.5			(112.5	)		(78.8	)		(58.2	)		7.3			(165.7	)
Total shareholders’ equity		2,745.6			1,707.3			7,027.7			6,774.5			(15,049.0	)		3,206.1
Total liabilities and shareholders’ equity	$	3,211.2		$	8,193.4		$	11,930.6		$	12,131.8		$	(28,798.4	)	$	6,668.6

Consolidating Statements of Cash Flows
Nine Months Ended September 30, 2011
(in millions)

	Cooper
	Industries			Cooper						Other			Consolidating
	plc			US, Inc.			Guarantors			Subsidiaries			Adjustments			Total
Net cash provided by (used in) operating activities	$	1.8		$	(94.9	)	$	83.9		$	186.2		$	—		$	177.0
Cash flows from investing activities:
Capital expenditures		—			(8.9	)		(51.3	)		(24.6	)		—			(84.8	)
Cash paid for acquired businesses		—			—			(3.5	)		(246.6	)		—			(250.1	)
Loans to affiliates		—			—			—			(1,275.2	)		1,275.2			—
Repayments of loans from affiliates		—			1,118.4			—			634.9			(1,753.3	)		—
Dividends from affiliates		—			22.0			18.8			—			(40.8	)		—
Proceeds from sales of property, plant and equipment and other		—			—			—			15.8			—			15.8
Net cash provided by (used in) investing activities		—			1,131.5			(36.0	)		(895.7	)		(518.9	)		(319.1	)
Cash flows from financing activities:
Short-term debt, net		—			—			—			(4.6	)		—			(4.6	)
Debt issuance costs		(0.5	)		(0.5	)		—			—			—			(1.0	)
Borrowings from affiliates		455.2			820.0			—			—			(1,275.2	)		—
Repayments of loans to affiliates		(42.8	)		(592.1	)		(1,045.0	)		(73.4	)		1,753.3			—
Other intercompany financing activities		70.7			(1,195.5	)		1,002.6			122.2			—			—
Dividends		(141.4	)		—			—			—			—			(141.4	)
Dividends paid to affiliates		—			—			—			(40.8	)		40.8			—
Purchases of treasury shares		(383.0	)		—			—			—			—			(383.0	)
Excess tax benefits from stock options and awards		—			13.3			—			—			—			13.3
Proceeds from exercise of stock options and other		54.8			—			—			—			—			54.8
Net cash provided by (used in) financing activities		13.0			(954.8	)		(42.4	)		3.4			518.9			(461.9	)
Effect of exchange rate changes on cash and cash equivalents		—			—			—			(0.7	)		—			(0.7	)
Increase (decrease) in cash and cash equivalents		14.8			81.8			5.5			(706.8	)		—			(604.7	)
Cash and cash equivalents, beginning of period		63.2			36.8			2.6			932.7			—			1,035.3
Cash and cash equivalents, end of period	$	78.0		$	118.6		$	8.1		$	225.9		$	—		$	430.6

Consolidating Statements of Cash Flows
Nine Months Ended September 30, 2010
(in millions)

	Cooper
	Industries			Cooper						Other			Consolidating
	plc			US, Inc.			Guarantors			Subsidiaries			Adjustments			Total
Net cash provided by (used in) operating activities	$	1.2		$	(68.1	)	$	230.8		$	233.1		$	—		$	397.0
Cash flows from investing activities:
Capital expenditures		—			(3.6	)		(26.7	)		(27.6	)		—			(57.9	)
Cash paid for acquired businesses		—			—			—			(21.6	)		—			(21.6	)
Cash restricted for business acquisition		—			—			—			(34.9	)		—			(34.9	)
Investments in affiliates		(1.9	)		(44.0	)		—			(67.9	)		113.8			—
Loans to affiliates		(40.0	)		(604.1	)		—			(1,752.7	)		2,396.8			—
Repayments of loans from affiliates		—			447.3			5.0			1,112.5			(1,564.8	)		—
Dividends from affiliates		—			1.9			13.3			270.4			(285.6	)		—
Proceeds from sales of property, plant and equipment and other		—			—			—			(4.6	)		—			(4.6	)
Net cash provided by (used in) investing activities		(41.9	)		(202.5	)		(8.4	)		(526.4	)		660.2			(119.0	)
Cash flows from financing activities:
Short-term debt, net		—			—			—			(2.3	)		—			(2.3	)
Borrowings from affiliates		419.1			600.4			909.2			468.1			(2,396.8	)		—
Repayments of loans to affiliates		(154.9	)		(162.0	)		(1,239.6	)		(8.3	)		1,564.8			—
Other intercompany financing activities		63.5			129.2			109.1			(301.8	)		—			—
Dividends		(132.7	)		—			—			—			—			(132.7	)
Dividends paid to affiliates		—			(270.4	)		—			(15.2	)		285.6			—
Purchases of treasury shares		(276.0	)		—			—			—			—			(276.0	)
Excess tax benefits from stock options and awards		—			4.8			—			—			—			4.8
Issuance of stock to affiliates		—			—			—			113.8			(113.8	)		—
Proceeds from exercise of stock options and other		34.5			—			—			—			—			34.5
Net cash provided by (used in) financing activities		(46.5	)		302.0			(221.3	)		254.3			(660.2	)		(371.7	)
Effect of exchange rate changes on cash and cash equivalents		—			—			—			8.1			—			8.1
Increase (decrease) in cash and cash equivalents		(87.2	)		31.4			1.1			(30.9	)		—			(85.6	)
Cash and cash equivalents, beginning of period		146.0			27.9			0.3			207.4			—			381.6
Cash and cash equivalents, end of period	$	58.8		$	59.3		$	1.4		$	176.5		$	—		$	296.0