FAQ

Why does Cooper use LIFO for cost flow purposes?

Cooper uses LIFO in the United States as it provides a benefit in reducing taxes compared to FIFO. This benefit is derived by lowering taxable income during periods when costs are rising.

What is Cooper's Raw Material Index?

The Raw Material Index is based on a fixed basket of goods that are typically used in manufacturing a tire. The raw material index does not always translate directly to the income statement, but it does provide a valuable resource in understanding the direction that raw materials have moved.

Why does Cooper not participate in selling to Original Equipment manufacturers?

This is a decision that is regularly reviewed by the Company's leadership. Cooper has sufficient technology to manufacture most of the tires currently used by the OEs, but there has not been a compelling enough situation to justify Cooper expanding into this channel.

What does Cooper see as the future of the International Segment?

Cooper has been successful in rapidly growing the international segment in recent years and expects this growth to continue. Eventually the segment is expected to account for 50% of revenues driven by growth in emerging markets.