Document_and_Entity_Informatio
Document and Entity Information Document (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Jan. 31, 2014 | Jun. 30, 2013 |
Entity Information [Line Items] | ' | ' | ' |
Entity Registrant Name | 'Eaton Corp plc | ' | ' |
Entity Central Index Key | '0001551182 | ' | ' |
Trading Symbol | 'ETN | ' | ' |
Document Type | '10-K | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'Q4 | ' | ' |
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 | ' | ' | $31,200 |
Entity Ordinary Shares, Shares Outstanding | ' | 475.3 | ' |
Consolidated_Statements_of_Inc
Consolidated Statements of Income (USD $) | 0 Months Ended | 12 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Feb. 26, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Statement [Abstract] | ' | ' | ' | ' |
Net sales | ' | $22,046 | $16,311 | $16,049 |
Cost of products sold | ' | 15,369 | 11,448 | 11,261 |
Selling and administrative expense | ' | 3,886 | 2,894 | 2,738 |
Research and development expense | ' | 644 | 439 | 417 |
Interest expense - net | ' | 271 | 208 | 118 |
Other (income) expense - net | ' | -8 | 71 | -38 |
Income before income taxes | ' | 1,884 | 1,251 | 1,553 |
Income tax expense | ' | 11 | 31 | 201 |
Net income | ' | 1,873 | 1,220 | 1,352 |
Less net income for noncontrolling interests | ' | -12 | -3 | -2 |
Net income attributable to Eaton ordinary shareholders | ' | $1,861 | $1,217 | $1,350 |
Net income per ordinary share | ' | ' | ' | ' |
Diluted | ' | $3.90 | $3.46 | $3.93 |
Basic | ' | $3.93 | $3.54 | $3.98 |
Weighted-average number of ordinary shares outstanding | ' | ' | ' | ' |
Diluted | ' | 476.7 | 350.9 | 342.8 |
Basic | ' | 473.5 | 347.8 | 338.3 |
Cash dividends declared per ordinary share | $0.49 | $1.68 | $1.52 | $1.36 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Current assets | ' | ' |
Cash | $915 | $577 |
Short-term investments | 794 | 527 |
Accounts receivable - net | 3,648 | 3,474 |
Inventory | 2,382 | 2,336 |
Deferred income taxes | 577 | 565 |
Prepaid expenses and other current assets | 415 | 421 |
Total current assets | 8,731 | 7,900 |
Property, plant and equipment | ' | ' |
Land and buildings | 2,461 | 2,095 |
Machinery and equipment | 5,504 | 5,522 |
Gross property, plant and equipment | 7,965 | 7,617 |
Accumulated depreciation | -4,132 | -3,831 |
Net property, plant and equipment | 3,833 | 3,786 |
Other noncurrent assets | ' | ' |
Goodwill | 14,495 | 14,443 |
Other intangible assets | 7,186 | 7,580 |
Deferred income taxes | 240 | 353 |
Other assets | 1,006 | 1,748 |
Total assets | 35,491 | 35,810 |
Current liabilities | ' | ' |
Short-term debt | 13 | 757 |
Current portion of long-term debt | 567 | 314 |
Accounts payable | 1,960 | 1,879 |
Accrued compensation | 461 | 462 |
Other current liabilities | 1,913 | 2,103 |
Total current liabilities | 4,914 | 5,515 |
Noncurrent liabilities | ' | ' |
Long-term debt | 8,969 | 9,765 |
Pension liabilities | 1,465 | 2,003 |
Other postretirement benefits liabilities | 668 | 742 |
Deferred income taxes | 1,313 | 1,548 |
Other noncurrent liabilities | 1,299 | 1,059 |
Total noncurrent liabilities | 13,714 | 15,117 |
Shareholders' equity | ' | ' |
Ordinary shares (475.1 million outstanding in 2013 and 470.7 million in 2012) | 5 | 5 |
Capital in excess of par value | 11,483 | 11,271 |
Retained earnings | 6,866 | 5,805 |
Accumulated other comprehensive loss | -1,560 | -1,964 |
Shares held in trust | -3 | -4 |
Total Eaton shareholders' equity | 16,791 | 15,113 |
Noncontrolling interests | 72 | 65 |
Total equity | 16,863 | 15,178 |
Total liabilities and equity | $35,491 | $35,810 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets Parentheticals | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Ordinary shares outstanding | 475.1 | 470.7 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Operating activities | ' | ' | ' |
Net income | $1,873 | $1,220 | $1,352 |
Adjustments to reconcile to net cash provided by operating activities | ' | ' | ' |
Depreciation and amortization | 997 | 598 | 556 |
Deferred income taxes | -311 | -155 | -113 |
Pension and other postretirement benefits expense | 384 | 335 | 295 |
Contributions to pension plans | -341 | -413 | -372 |
Contributions to other postretirement benefits plans | -59 | -43 | -223 |
Excess tax benefit from equity-based compensation | -32 | -21 | -57 |
Changes in working capital | ' | ' | ' |
Accounts receivable - net | -231 | 108 | -219 |
Inventory | -92 | 166 | -113 |
Accounts payable | 86 | -220 | 92 |
Accrued compensation | 0 | -52 | -38 |
Accrued income and other taxes | 1 | -86 | 123 |
Other current assets | -42 | 117 | 11 |
Other current liabilites | -46 | 30 | -30 |
Other - net | 98 | 80 | -16 |
Net cash provided by operating activities | 2,285 | 1,664 | 1,248 |
Investing activities | ' | ' | ' |
Capital expenditures for property, plant and equipment | -614 | -593 | -568 |
Cash paid for acquisitions of businesses, net of cash acquired | -9 | -6,936 | -325 |
(Purchases) sales of short-term investments - net | -288 | 603 | 103 |
Proceeds from the sales of businesses | 777 | 3 | 15 |
Other - net | -68 | -49 | -25 |
Net cash used in investing activities | -202 | -6,972 | -800 |
Financing activities | ' | ' | ' |
Proceeds from borrowings | 9 | 7,156 | 381 |
Payments on borrowings | -1,096 | -1,324 | -78 |
Payments of financing costs | 0 | -117 | -3 |
Cash dividends paid | -796 | -512 | -462 |
Exercise of employee stock options | 121 | 95 | 71 |
Issuance (repurchase) of shares | 0 | 159 | -343 |
Excess tax benefit from equity-based compensation | 32 | 21 | 57 |
Other - net | -6 | 2 | -4 |
Net cash (used in) provided by financing activities | -1,736 | 5,480 | -381 |
Effect of currency on cash | -9 | 20 | -15 |
Total increase in cash | 338 | 192 | 52 |
Cash at the beginning of the period | 577 | 385 | 333 |
Cash at the end of the period | $915 | $577 | $385 |
Consolidated_Statements_of_Sha
Consolidated Statements of Shareholders' Equity Statement (USD $) | Total | Ordinary Shares [Member] | Capital In Excess Of Par Value [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Loss [Member] | Shares Held in Trust [Member] | Total Eaton Shareholders' Equity [Member] | Noncontrolling Interests [Member] |
In Millions | ||||||||
Beginning balance at Dec. 31, 2010 | $7,403 | $170 | $4,093 | $4,455 | ($1,348) | ($8) | $7,362 | $41 |
Ordinary shares, shares outstanding at period start at Dec. 31, 2010 | ' | 339.9 | ' | ' | ' | ' | ' | ' |
Net income | 1,352 | 0 | 0 | 1,350 | 0 | 0 | 1,350 | 2 |
Other comprehensive income (loss), net of tax | -616 | ' | ' | ' | -616 | ' | -616 | 0 |
Cash dividends paid | -466 | 0 | 0 | -462 | 0 | 0 | -462 | -4 |
Issuance of shares under equity-based compensation plans - net (net of income tax benefit of $32, $23 and $72 for the years 2013, 2012 and 2011, respectively) | 178 | 1 | 177 | -2 | 0 | 2 | 178 | 0 |
Business divestiture | -16 | 0 | 0 | 0 | 0 | 0 | 0 | -16 |
Issuance of shares under equity-based compensation plans - net (net of income tax benefit of $32, $23 and $72 for the years 2013, 2012 and 2011, respectively), shares | ' | 2.8 | ' | ' | ' | ' | ' | ' |
Repurchase of shares, shares | ' | -8.3 | ' | ' | ' | ' | ' | ' |
Repurchase of shares | -343 | -4 | -101 | -238 | 0 | 0 | -343 | 0 |
Ending balance at Dec. 31, 2011 | 7,492 | 167 | 4,169 | 5,103 | -1,964 | -6 | 7,469 | 23 |
Ordinary shares, shares outstanding at period end at Dec. 31, 2011 | ' | 334.4 | ' | ' | ' | ' | ' | ' |
Net income | 1,220 | 0 | 0 | 1,217 | 0 | 0 | 1,217 | 3 |
Other comprehensive income (loss), net of tax | 0 | ' | ' | ' | 0 | ' | 0 | 0 |
Cash dividends paid | -515 | 0 | 0 | -512 | 0 | 0 | -512 | -3 |
Exchange of Eaton Corporation shares (par value $0.50 per share) for Eaton shares (par value $0.01 per share) | 0 | -166 | 166 | 0 | 0 | 0 | 0 | 0 |
Issuance of shares under equity-based compensation plans - net (net of income tax benefit of $32, $23 and $72 for the years 2013, 2012 and 2011, respectively) | 129 | 2 | 129 | -2 | 0 | 0 | 129 | 0 |
Issuance of shares under employee benefit plans, shares | ' | 3.2 | ' | ' | ' | ' | ' | ' |
Issuance of shares under employee benefit plans | 168 | 0 | 166 | 0 | 0 | 2 | 168 | 0 |
Issuance of shares from acquisition of business, shares | ' | 128.1 | ' | ' | ' | ' | ' | ' |
Issuance of shares from acquisition of business | 6,691 | 2 | 6,648 | -1 | 0 | 0 | 6,649 | 42 |
Issuance of shares under equity-based compensation plans - net (net of income tax benefit of $32, $23 and $72 for the years 2013, 2012 and 2011, respectively), shares | ' | 5 | ' | ' | ' | ' | ' | ' |
Registration of ordinary shares | -7 | 0 | -7 | 0 | 0 | 0 | -7 | 0 |
Shareholders' equity attributable to noncontrolling interest at period end at Dec. 31, 2012 | 65 | ' | ' | ' | ' | ' | ' | ' |
Ending balance at Dec. 31, 2012 | 15,178 | 5 | 11,271 | 5,805 | -1,964 | -4 | 15,113 | 65 |
Shareholders' equity attributable to parent at period end at Dec. 31, 2012 | 15,113 | ' | ' | ' | ' | ' | ' | ' |
Ordinary shares, shares outstanding at period end at Dec. 31, 2012 | 470.7 | 470.7 | ' | ' | ' | ' | ' | ' |
Net income | 1,873 | 0 | 0 | 1,861 | 0 | 0 | 1,861 | 12 |
Other comprehensive income (loss), net of tax | 404 | ' | ' | ' | 404 | ' | 404 | 0 |
Cash dividends paid | -801 | 0 | 0 | -796 | 0 | 0 | -796 | -5 |
Issuance of shares under equity-based compensation plans - net (net of income tax benefit of $32, $23 and $72 for the years 2013, 2012 and 2011, respectively) | 209 | 0 | 212 | -4 | 0 | 1 | 209 | 0 |
Issuance of shares under equity-based compensation plans - net (net of income tax benefit of $32, $23 and $72 for the years 2013, 2012 and 2011, respectively), shares | ' | 4.4 | ' | ' | ' | ' | ' | ' |
Shareholders' equity attributable to noncontrolling interest at period end at Dec. 31, 2013 | 72 | ' | ' | ' | ' | ' | ' | ' |
Ending balance at Dec. 31, 2013 | 16,863 | 5 | 11,483 | 6,866 | -1,560 | -3 | 16,791 | 72 |
Shareholders' equity attributable to parent at period end at Dec. 31, 2013 | $16,791 | ' | ' | ' | ' | ' | ' | ' |
Ordinary shares, shares outstanding at period end at Dec. 31, 2013 | 475.1 | 475.1 | ' | ' | ' | ' | ' | ' |
Consolidated_Statements_of_Sha1
Consolidated Statements of Shareholders' Equity Parenthetical (USD $) | 12 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Issuance of shares under equity-based compensation plans - net, net of income tax benefit | $32 | $23 | $72 |
Eaton Corporation common share par value | ' | $0.50 | ' |
Eaton Corporation plc ordinary share par value | $0.01 | ' | ' |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Net income | $1,873 | $1,220 | $1,352 |
Less net income for noncontrolling interests | -12 | -3 | -2 |
Net income attributable to Eaton ordinary shareholders | 1,861 | 1,217 | 1,350 |
Other comprehensive income (loss), net of tax | ' | ' | ' |
Currency translation and related hedging instruments | -28 | 135 | -241 |
Pensions and other postretirement benefits | 429 | -152 | -353 |
Cash flow hedges | 3 | 17 | -22 |
Other comprehensive income (loss) attributable to Eaton ordinary shareholders | 404 | 0 | -616 |
Total comprehensive income attributable to Eaton ordinary shareholders | $2,265 | $1,217 | $734 |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2013 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Summary of Significant Accounting Policies | ' |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
General Information and Basis of Presentation | |
Eaton Corporation plc (Eaton or the Company) is a power management company providing energy-efficient solutions that help its customers effectively manage electrical, hydraulic and mechanical power. With 2013 net sales of $22.0 billion, the Company is a global technology leader in electrical products, systems and services for power quality, distribution and control, power transmission, lighting, and wiring; hydraulics components, systems and services for industrial and mobile equipment; aerospace fuel, hydraulics and pneumatic systems for commercial and military use; and truck and automotive drivetrain and powertrain systems for performance, fuel economy, and safety. Eaton has approximately 102,000 employees in over 60 countries, and sells products to customers in more than 175 countries. | |
The consolidated financial statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States. Preparation of the consolidated financial statements requires management to make estimates and assumptions that affect amounts reported in the consolidated financial statements and notes. Actual results could differ from these estimates. Management has evaluated subsequent events through the date the consolidated financial statements were filed with the Securities Exchange Commission. | |
The consolidated financial statements include the accounts of Eaton and all subsidiaries and other controlled entities. Intercompany transactions and balances have been eliminated. The equity method of accounting is used for investments in associate companies where the Company has a 20% to 50% ownership interest. Equity investments are evaluated for impairment whenever events or circumstances indicate the book value of the investment exceeds fair value. An impairment would exist if there is an other-than-temporary decline in value. These associate companies are not material either individually, or in the aggregate, to Eaton's consolidated financial statements. Eaton does not have off-balance sheet arrangements or financings with unconsolidated entities. In the ordinary course of business, the Company leases certain real properties and equipment, as described in Note 7. | |
Eaton's functional currency is United States Dollars (USD). The functional currency for most subsidiaries is their local currency. Financial statements for these subsidiaries are translated at year-end exchange rates as to assets and liabilities and weighted-average exchange rates as to revenues and expenses. The resulting translation adjustments are recognized in Accumulated other comprehensive loss. | |
Certain prior year amounts have been reclassified to conform to the current year presentation. | |
Revenue Recognition | |
Sales of products are recognized when a sales agreement is in place, products have been shipped to unaffiliated customers and title has transferred in accordance with shipping terms, the selling price is fixed and determinable and collectability is reasonably assured, all significant related acts of performance have been completed, and no other significant uncertainties exist. Shipping and handling costs billed to customers are included in Net sales and the related costs in Cost of products sold. Although the majority of the sales agreements contain standard terms and conditions, there are agreements that contain multiple elements or non-standard terms and conditions. As a result, judgment is required to determine the appropriate accounting, including whether the deliverables specified in these agreements should be treated as separate units of accounting for recognition purposes, and, if so, how the sales price should be allocated among the elements and when to recognize sales for each element. For delivered elements, sales are recognized only when the delivered elements have standalone value, fair values of undelivered elements are known, there are no uncertainties regarding customer acceptance, and there are no customer-negotiated refund or return rights affecting the sales recognized for delivered elements. Sales for service contracts generally are recognized as the services are provided. | |
Eaton records reductions to revenue for customer and distributor incentives, primarily comprised of rebates, at the time of the initial sale. Rebates are estimated based on sales terms, historical experience, trend analysis, and projected market conditions in the various markets served. The rebate programs offered vary across businesses due to the numerous markets Eaton serves, but the most common incentives relate to amounts paid or credited to customers for achieving defined volume levels. | |
Long-Lived Assets | |
Depreciation and amortization for property, plant and equipment, and intangible assets subject to amortization, are generally computed by the straight-line method and included in Cost of products sold, Selling and administrative expense, and Research and development expense, as appropriate. Cost of buildings are depreciated generally over 40 years and machinery and equipment over 3 to 10 years. At December 31, 2013, the weighted-average amortization period for intangible assets subject to amortization was 17 years for patents and technology, primarily as a result of the long life of aircraft platforms, and 16 years for customer relationships. Software is amortized up to a maximum life of 10 years. | |
Long-lived assets, except goodwill and indefinite life intangible assets, are reviewed for impairment whenever events or changes in circumstances indicate the carrying amount may not be recoverable. Upon indications of impairment, assets and liabilities are grouped at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities. The asset group would be considered impaired when the estimated future net undiscounted cash flows generated by the asset group are less than its carrying value. Determining asset groups and underlying cash flows requires the use of significant judgment. | |
Goodwill and Indefinite Life Intangible Assets | |
Goodwill and indefinite life intangible assets are evaluated annually for impairment as of July 1 using either a quantitative or qualitative analysis. Goodwill is tested for impairment at the reporting unit level, which is equivalent to Eaton's operating segments, and based on the net assets for each segment, including goodwill and intangible assets. Goodwill is assigned to each operating segment, as this represents the lowest level that constitutes a business and is the level at which management regularly reviews the operating results. The Company performs a quantitative analysis using a discounted cash flow model and other valuation techniques, but may elect to perform a qualitative analysis. | |
Goodwill impairment testing for 2013 was performed using a quantitative analysis under which the fair value for each reporting unit was estimated using a discounted cash flow model, which considered forecasted cash flows discounted at an estimated weighted-average cost of capital. The forecasted cash flows were based on the Company's long-term operating plan and a terminal value was used to estimate the operating segment's cash flows beyond the period covered by the operating plan. The weighted-average cost of capital is an estimate of the overall after-tax rate of return required by equity and debt market holders of a business enterprise. These analyses require the exercise of significant judgments, including judgments about appropriate discount rates, perpetual growth rates and the timing of expected future cash flows of the respective operating segment. Sensitivity analyses were performed around these assumptions in order to assess the reasonableness of the assumptions and the resulting estimated fair values. For 2013, based on a quantitative analysis, the fair values of Eaton's reporting units continue to substantially exceed the respective carrying amounts. | |
A qualitative analysis is performed by assessing certain trends and factors, including projected market outlook and growth rates, forecasted and actual sales and operating profit margins, discount rates, industry data, and other relevant qualitative factors. These trends and factors are compared to, and based on, the assumptions used in the most recent quantitative assessment. Additionally, goodwill and indefinite life intangible assets are evaluated for impairment whenever events or circumstances indicate there may be a possible permanent loss of value. | |
Indefinite life intangible assets primarily consist of trademarks. The fair value of these assets are determined using a royalty relief methodology similar to that employed when the associated assets were acquired, but using updated estimates of future sales, cash flows, and profitability. For 2013 and 2012, the fair value of indefinite lived intangible assets substantially exceeded the respective carrying value. | |
For additional information about goodwill and other intangible assets, see Note 4. | |
Derivative Financial Instruments and Hedging Activities | |
Eaton uses derivative financial instruments to manage the exposure to the volatility in raw material costs, currency, and interest rates on certain debt. These instruments are marked to fair value in the accompanying Consolidated Balance Sheets. Changes in the fair value of derivative assets or liabilities (i.e., gains or losses) are recognized depending upon the type of hedging relationship and whether an instrument has been designated as a hedge. For those instruments that qualify for hedge accounting, Eaton designates the hedging instrument, based upon the exposure being hedged, as a cash flow hedge, a fair value hedge, or a hedge of a net investment in a foreign operation. Changes in fair value of these instruments that do not qualify for hedge accounting are recognized immediately in net income. See Note 12 for additional information about hedges and derivative financial instruments. | |
Warranty Accruals | |
Product warranty accruals are established at the time the related sale is recognized through a charge to Cost of products sold. Warranty accrual estimates are based primarily on historical warranty claim experience and specific customer contracts. Provisions for warranty accruals are comprised of basic warranties for products sold, as well as accruals for product recalls and other events when they are known and estimable. See Note 7 for additional information about warranty accruals. | |
Asset Retirement Obligations | |
A conditional asset retirement obligation is recognized at fair value when incurred if the fair value of the liability can be reasonably estimated. Uncertainty about the timing or method of settlement of a conditional asset retirement obligation would be considered in the measurement of the liability when sufficient information exists. Eaton believes that for substantially all of its asset retirement obligations, there is an indeterminate settlement date because the range of time over which the Company may settle the obligation is unknown or cannot be estimated. A liability for these obligations will be recognized when sufficient information is available to estimate fair value. | |
Income Taxes | |
Deferred income tax assets and liabilities are determined based on the difference between the financial statement and tax basis of the respective assets and liabilities, using enacted tax rates in effect for the year when the differences are expected to reverse. Deferred income tax assets are recognized for income tax loss carryforwards and income tax credit carryforwards. Judgment is required in determining and evaluating income tax provisions and valuation allowances for deferred income tax assets. Eaton recognizes the income tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by taxing authorities, based on the technical merits of the position. Eaton evaluates and adjusts these accruals based on changing facts and circumstances. Eaton recognizes interest and penalties related to unrecognized income tax benefits in the provision for income tax expense. Penalties on unrecognized income tax benefits have been accrued for jurisdictions where penalties are automatically applied to any deficiency, regardless of the merit of the position. For additional information about income taxes, see Note 8. | |
Equity-Based Compensation | |
Eaton recognizes equity-based compensation expense based on the grant date fair value of the award over the period during which an employee is required to provide service in exchange for the award. Restricted stock units (RSUs) and restricted stock awards (RSAs) are issued at fair market value at the date of grant. The RSUs entitle the holder to receive one ordinary share for each RSU upon vesting, generally over three or four years. RSAs are issued and outstanding at the time of grant, but remain subject to forfeiture until vested, generally over three or four years. Stock options are granted with an exercise price equal to the closing market price of Eaton ordinary shares on the date of grant. The fair value of stock options is determined using a Black-Scholes option-pricing model, which incorporates assumptions regarding the expected volatility, the expected option life, the risk-free interest rate, and the expected dividend yield. See Note 10 for additional information about equity-based compensation. |
Acquisitions_and_Sales_of_Busi
Acquisitions and Sales of Businesses | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Acquistions and sale of businesses [Abstract] | ' | |||||||||||
Business Combination Disclosure [Text Block] | ' | |||||||||||
ACQUISITIONS AND SALES OF BUSINESSES | ||||||||||||
In 2012 and 2011, Eaton acquired businesses and entered into a joint venture in separate transactions for combined purchase prices totaling $13,796 and $325, respectively. The Consolidated Statements of Income include the results of these businesses from the dates of the transactions or formation. | ||||||||||||
Cooper Industries plc | ||||||||||||
On November 30, 2012, Eaton Corporation acquired Cooper Industries plc (Cooper) for a purchase price of $13,192. At the completion of the transaction, the holder of each Cooper common share received from Eaton $39.15 in cash and 0.77479 of an Eaton ordinary share. As a result of the transaction, based on the number of outstanding shares of Eaton Corporation and Cooper as of November 30, 2012, former Eaton Corporation and Cooper shareholders held approximately 73% and 27%, respectively, of Eaton's ordinary shares after giving effect to the acquisition. | ||||||||||||
Cooper is a diversified global manufacturer of electrical products and systems, with brands including Bussmann electrical and electronic fuses; Crouse-Hinds and CEAG explosion-proof electrical equipment; Halo and Metalux lighting fixtures; and Kyle and McGraw-Edison power systems products. Cooper had annual sales of $5,409 for 2011. For segment reporting purposes, Cooper has been included in Electrical Products and Electrical Systems and Services business segments. See Note 14 for additional information about business segments. | ||||||||||||
Eaton's management believes the acquisition of Cooper will provide substantial synergies including, but not limited to, enhanced operational cost efficiencies, incremental revenue opportunities, the acceleration of Eaton’s long-term growth potential through greater exposure to faster growing end markets, increased earnings and cash flow and better access to capital markets as a result of enhanced size and an expanded business line. | ||||||||||||
Fair Value of Consideration Transferred | ||||||||||||
The total purchase price for the acquisition of Cooper was $13,192, comprised of Eaton share consideration valued at $6,649 and cash consideration for Cooper shares of $6,474 and to settle certain Cooper equity-based compensation plans of $69, as follows: | ||||||||||||
Cooper shares outstanding as of November 30, 2012 | 163.6 | |||||||||||
Cooper shares issued pursuant to conversion of stock options and share units outstanding under | 1.8 | |||||||||||
Cooper equity-based compensation plans | ||||||||||||
Total Cooper shares and share equivalents prior to transaction | 165.4 | |||||||||||
Exchange ratio per share | 0.77479 | |||||||||||
Total Eaton shares issued | 128.1 | |||||||||||
Weighted-average Eaton Corporation per share price on November 30, 2012 | $ | 51.91 | ||||||||||
Total value of Eaton shares issued | $ | 6,649 | ||||||||||
Total cash consideration paid at $39.15 per Cooper share and share equivalent | 6,474 | |||||||||||
Total cash consideration paid for equity-based compensation plans | 69 | |||||||||||
Total consideration | $ | 13,192 | ||||||||||
Purchase Price Allocation | ||||||||||||
The acquisition of Cooper has been accounted for using the acquisition method of accounting which requires, among other things, the assets acquired and liabilities assumed be recognized at their respective fair values as of the acquisition date. For accounting purposes, Eaton has been treated as the acquirer in the transaction. The process for estimating the fair values of identifiable intangible assets and certain tangible assets and assumed liabilities requires the use of judgment in determining the appropriate assumptions and estimates. | ||||||||||||
The purchase price allocation below represents Cooper's opening balance sheet on November 30, 2012 which was initially reported in Eaton's Form 10-K for the year ended December 31, 2012 and updated by Exhibit 99.1 of Eaton's current report on Form 8-K filed on September 6, 2013. During the measurement period which ended November 30, 2013, opening balance sheet adjustments were made to finalize Eaton's preliminary fair value estimates related primarily to intangible assets, goodwill, certain property values, contingent liabilities and the related deferred tax impact. Eaton's consolidated balance sheet at December 31, 2012 has been adjusted to reflect the final purchase price allocation. The Company did not revise the Consolidated Statement of Income for the year ended December 31, 2012, as any adjustment was considered immaterial. | ||||||||||||
30-Nov-12 | Adjustments | November 30, | ||||||||||
(as previously | 2012 | |||||||||||
reported) | (final adjusted) | |||||||||||
Working capital accounts (1) | $ | 2,304 | $ | (18 | ) | $ | 2,286 | |||||
Prepaid expenses and other current assets | 204 | 69 | 273 | |||||||||
Property, plant and equipment | 885 | (40 | ) | 845 | ||||||||
Investment in Apex Tool Group, LLC | 807 | (7 | ) | 800 | ||||||||
Intangible assets | 5,250 | 119 | 5,369 | |||||||||
Other assets | 35 | 30 | 65 | |||||||||
Debt | (1,221 | ) | — | (1,221 | ) | |||||||
Accounts payable | (519 | ) | 3 | (516 | ) | |||||||
Other current liabilities | (673 | ) | (206 | ) | (879 | ) | ||||||
Other noncurrent liabilities | (2,185 | ) | (177 | ) | (2,362 | ) | ||||||
Total identifiable net assets | 4,887 | (227 | ) | 4,660 | ||||||||
Goodwill | 8,305 | 227 | 8,532 | |||||||||
Total consideration | $ | 13,192 | $ | — | $ | 13,192 | ||||||
(1) Working capital accounts include Cash, Short-term investments, Accounts receivable and Inventory. | ||||||||||||
Goodwill has been allocated to the Electrical Products and Electrical Systems and Services segments. Goodwill is calculated as the excess of the consideration transferred over the net assets recognized and represents the expected revenue and cost synergies of the combined company and assembled workforce, which are further described above. Goodwill recognized as a result of the acquisition is not deductible for tax purposes. See Note 4 for additional information about goodwill and other intangible assets. | ||||||||||||
The estimated fair value of Accounts receivable is based on the historical gross contractual amount receivable as of the acquisition date and totals $955. | ||||||||||||
Contingent liabilities assumed as part of the transaction total $419 and are included in Other current liabilities and Other noncurrent liabilities. These contingent liabilities are related to environmental, legal (including product liability claims) and tax matters. Contingent liabilities are recorded at fair value in purchase accounting, aside from those pertaining to uncertainty in income taxes which are an exception to the fair value basis of accounting. Legal matters, and certain environmental matters that are legal in nature, are recorded at the respective probable and estimable amount. | ||||||||||||
Actual and Pro Forma Impact | ||||||||||||
Eaton's Consolidated Financial Statements for the year ended December 31, 2012 include Cooper's results of operations from the date of acquisition on November 30, 2012 through December 31, 2012. Net sales and operating profit attributable to Cooper during this period and included in Eaton's Consolidated Financial Statements for the year ended December 31, 2012 total $470 and $66, respectively. | ||||||||||||
The following unaudited pro forma information gives effect to Eaton's acquisition of Cooper as if the acquisition had occurred on January 1, 2012 and Cooper had been included in Eaton's consolidated results of operations for the year ended December 31, 2012. | ||||||||||||
2012 | ||||||||||||
Net sales | $ | 21,792 | ||||||||||
Net income from continuing operations attributable to Eaton ordinary shareholders | 1,695 | |||||||||||
Diluted earnings per share from continuing operations | $ | 3.54 | ||||||||||
The historical consolidated financial information of Eaton and Cooper has been adjusted in the pro forma information to give effect to pro forma events that are (1) directly attributable to the transaction, (2) factually supportable and (3) expected to have a continuing impact on the combined results. For pro forma purposes, the equity in income of Apex Tool Group, LLC has been excluded as this joint venture was sold on February 1, 2013. | ||||||||||||
Acquisitions and Sales of Other Businesses | ||||||||||||
In 2012 and 2011, Eaton acquired other businesses and entered into a joint venture in separate transactions. The Consolidated Statements of Income include the results of these businesses from the dates of the transactions or formation. These transactions and the related annual sales prior to acquisition are summarized below: | ||||||||||||
Acquired businesses and joint venture | Date of | Business | Annual sales | |||||||||
transaction | segment | |||||||||||
Rolec Comercial e Industrial S.A. | September 28, | Electrical | $85 for the | |||||||||
2012 | Systems | 12 months | ||||||||||
and | ended | |||||||||||
Services | September 30, | |||||||||||
A Chilean manufacturer of integrated power assemblies and low- and medium-voltage switchgear, and a provider of engineering services serving mining and other heavy industrial applications in Chile and Peru. | 2012 | |||||||||||
Jeil Hydraulics Co., Ltd. | July 6, | Hydraulics | $189 for 2011 | |||||||||
A Korean manufacturer of track drive motors, swing drive motors, main control valves and remote control valves for the construction equipment market. | 2012 | |||||||||||
Polimer Kaucuk Sanayi ve Pazarlama A.S. | June 1, | Hydraulics | $335 for 2011 | |||||||||
A Turkish manufacturer of hydraulic and industrial hose for construction, mining, agriculture, oil and gas, manufacturing, food and beverage, and chemicals markets. This business sells its products under the SEL brand name. | 2012 | |||||||||||
Acquired businesses and joint venture | Date of | Business | Annual sales | |||||||||
transaction | segment | |||||||||||
Gycom Electrical Low-Voltage Power Distribution, Control and Automation | June 1, | Electrical | $24 for 2011 | |||||||||
2012 | Systems | |||||||||||
and | ||||||||||||
A Swedish electrical low-voltage power distribution, control and automation components business. | Services | |||||||||||
E.A. Pedersen Company | December 29, | Electrical | $37 for 2011 | |||||||||
2011 | Systems | |||||||||||
and | ||||||||||||
A United States manufacturer of medium voltage switchgear, metal-clad switchgear, power control buildings and relay control panels primarily for the electrical utilities industry. | Services | |||||||||||
IE Power, Inc. | August 31, | Electrical | $5 for 2010 | |||||||||
2011 | Systems | |||||||||||
and | ||||||||||||
A Canadian provider of high power inverters for a variety of mission-critical applications including solar, wind and battery energy storage. | Services | |||||||||||
E. Begerow GmbH & Co. KG | August 15, | Hydraulics | $84 for 2010 | |||||||||
A German system provider of advanced liquid filtration solutions. This business develops and produces technologically innovative filter media and filtration systems for food and beverage, chemical, pharmaceutical and industrial applications. | 2011 | |||||||||||
ACTOM Low Voltage | June 30, | Electrical | $65 for the | |||||||||
2011 | Systems | year ended | ||||||||||
and | May 31, | |||||||||||
A South African manufacturer and supplier of motor control components, engineered electrical distribution systems and uninterruptible power supply (UPS) systems. | Services | 2011 | ||||||||||
C.I. ESI de Colombia S.A. | June 2, | Electrical | $8 for 2010 | |||||||||
A Colombian distributor of industrial electrical equipment and engineering services in the Colombian market, focused on oil and gas, mining, and industrial and commercial construction. | 2011 | Products | ||||||||||
Internormen Technology Group | May 12, | Hydraulics | $55 for 2010 | |||||||||
A Germany-based manufacturer of hydraulic filtration and instrumentation with sales and distribution subsidiaries in China, the United States, India and Brazil. | 2011 | |||||||||||
Eaton-SAMC (Shanghai) Aircraft Conveyance System Manufacturing | March 8, | Aerospace | Joint venture | |||||||||
Co., Ltd. | 2011 | |||||||||||
A 49%-owned joint venture in China focusing on the design, development, manufacturing and support of fuel and hydraulic conveyance systems for the global civil aviation market. | ||||||||||||
Tuthill Coupling Group | January 1, | Hydraulics | $35 for the | |||||||||
2011 | year ended | |||||||||||
November 30, | ||||||||||||
A United States based manufacturer of pneumatic and hydraulic quick coupling solutions and leak-free connectors used in industrial, construction, mining, defense, energy and power applications. | 2010 | |||||||||||
Sale of Aerospace Power Distribution Management Solutions and Integrated Cockpit Solutions | ||||||||||||
On January 20, 2014, Eaton announced it entered into an agreement to sell the Aerospace Power Distribution Management Solutions and Integrated Cockpit Solutions businesses to Safran for $270. The sale, which was approved by Eaton's Board of Directors, is subject to regulatory approvals and other customary closing conditions. The transaction is expected to close early in the second quarter of 2014. | ||||||||||||
Sale of Apex Tool Group, LLC | ||||||||||||
In July 2010, Cooper formed a joint venture, named Apex Tool Group, LLC (Apex), with Danaher Corporation (Danaher). On October 10, 2012, Cooper and Danaher announced they had entered into a definitive agreement to sell Apex to Bain Capital for approximately $1.6 billion subject to post-closing adjustments. On February 1, 2013, the sale of Apex was completed. |
Acquisition_Integration_and_Re
Acquisition Integration and Restructuring Charges | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Acquisition Integration and Restructuring Charges [Abstract] | ' | |||||||||||
Acquisition Integration and Restructuring Charges | ' | |||||||||||
ACQUISITION INTEGRATION AND RESTRUCTURING CHARGES | ||||||||||||
Acquisition Integration Charges and Transaction Costs | ||||||||||||
Eaton incurs integration charges and transaction costs related to acquired businesses. A summary of these charges follows: | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Acquisition integration charges | ||||||||||||
Electrical Products | $ | 44 | $ | 4 | $ | 1 | ||||||
Electrical Systems and Services | 37 | 13 | 9 | |||||||||
Hydraulics | 36 | 16 | 4 | |||||||||
Total business segments | 117 | 33 | 14 | |||||||||
Corporate | 37 | 11 | — | |||||||||
Total acquisition integration charges | $ | 154 | $ | 44 | $ | 14 | ||||||
Transaction costs | ||||||||||||
Corporate | $ | 8 | $ | 106 | $ | — | ||||||
Financing fees | 1 | 72 | — | |||||||||
Total transaction costs | $ | 9 | $ | 178 | $ | — | ||||||
Total acquisition integration charges and transaction costs before | $ | 163 | $ | 222 | $ | 14 | ||||||
income taxes | ||||||||||||
Total after income taxes | $ | 110 | $ | 167 | $ | 10 | ||||||
Per ordinary share - diluted | $ | 0.23 | $ | 0.48 | $ | 0.03 | ||||||
Business segment integration charges in 2013 were related primarily to the integrations of Cooper and Polimer Kaucuk Sanayi ve Pazarlama (SEL). Business segment integration charges in 2012 were related primarily to the integrations of SEL, Jeil Hydraulics, Cooper, and Internormen Technology Group. Business segment integration charges in 2011 were related primarily to the integrations of CopperLogic, Tuthill Coupling Group, Wright Line Holding, EMC Engineers, and Internormen Technology Group. These charges were included in Cost of products sold or Selling and administrative expense, as appropriate. | ||||||||||||
Corporate integration charges in 2013 and 2012 were related primarily to the acquisition of Cooper. These charges were included in Selling and administrative expense. In Business Segment Information the charges were included in Other corporate expense - net. | ||||||||||||
Acquisition-related transaction costs, such as investment banking, legal, and other professional fees, and costs associated with change in control agreements, are not included as a component of consideration transferred in an acquisition but are expensed as incurred. Acquisition-related transaction costs in 2013 and 2012 were related to the acquisition of Cooper. These charges were included in Selling and administrative expense, Interest expense - net and Other (income) expense - net. In Business Segment Information the charges were included in Interest expense - net and Other corporate expense - net. | ||||||||||||
See Note 2 for additional information about business acquisitions. | ||||||||||||
Restructuring Charges | ||||||||||||
During the fourth quarter of 2012, Eaton undertook restructuring activities to improve the efficiency of certain businesses. These actions resulted in a charge in the fourth quarter of 2012 of $50, comprised of severance costs totaling $34 and other non-cash expenses totaling $16. | ||||||||||||
During 2013, Eaton undertook restructuring activities related to the acquisition and integration of Cooper in an effort to gain efficiencies in selling, marketing, traditional back-office functions and manufacturing and distribution. These actions resulted in charges totaling $36, comprised primarily of severance costs, and are included in the table above in acquisition integration charges. These restructuring initiatives are expected to continue through 2015. | ||||||||||||
Restructuring charges were included in Cost of products sold or Selling and administrative expense, as appropriate. In Business Segment Information, the charges reduced Operating profit of the related business segment. See Note 14 for additional information about business segments. As of December 31, 2013 and 2012, the liabilities related to these restructuring actions totaled $32 and $34, respectively. |
Goodwill_and_Other_Intangible_
Goodwill and Other Intangible Assets | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||||||
GOODWILL | ' | |||||||||||||||
GOODWILL AND OTHER INTANGIBLE ASSETS | ||||||||||||||||
A summary of goodwill follows: | ||||||||||||||||
2013 | 2012 | |||||||||||||||
Electrical Products | $ | 7,189 | $ | 7,117 | ||||||||||||
Electrical Systems and Services | 4,517 | 4,520 | ||||||||||||||
Hydraulics | 1,385 | 1,404 | ||||||||||||||
Aerospace | 1,048 | 1,045 | ||||||||||||||
Vehicle | 356 | 357 | ||||||||||||||
Total goodwill | $ | 14,495 | $ | 14,443 | ||||||||||||
The increase in goodwill in 2013 was primarily due to currency translation. | ||||||||||||||||
A summary of other intangible assets follows: | ||||||||||||||||
2013 | 2012 | |||||||||||||||
Historical | Accumulated | Historical | Accumulated | |||||||||||||
cost | amortization | cost | amortization | |||||||||||||
Intangible assets not subject to amortization | $ | 1,868 | $ | 1,865 | ||||||||||||
(primarily trademarks) | ||||||||||||||||
Intangible assets subject to amortization | ||||||||||||||||
Customer relationships | $ | 3,859 | $ | 669 | $ | 3,838 | $ | 428 | ||||||||
Patents and technology | 1,588 | 389 | 1,626 | 325 | ||||||||||||
Other | 1,155 | 226 | 1,160 | 156 | ||||||||||||
Total other intangible assets | $ | 6,602 | $ | 1,284 | $ | 6,624 | $ | 909 | ||||||||
Amortization expense related to intangible assets subject to amortization in 2013, and estimated amortization expense for each of the next five years, follows: | ||||||||||||||||
2013 | $ | 432 | ||||||||||||||
2014 | 428 | |||||||||||||||
2015 | 422 | |||||||||||||||
2016 | 410 | |||||||||||||||
2017 | 399 | |||||||||||||||
2018 | 379 | |||||||||||||||
Other Intangible Assets Related to the Acquisition of Cooper | ||||||||||||||||
The estimated fair values of other intangible assets acquired in the Cooper transaction and included in the table above were determined using an income valuation approach, which requires a forecast of expected future cash flows either through the use of the relief-from-royalty method or the multi-period excess earnings method. The estimated fair value of these identifiable intangible assets, their estimated useful lives and valuation methodology are as follows: | ||||||||||||||||
Fair value | Useful life | Valuation method | ||||||||||||||
Trade names (indefinite-lived) | $ | 1,410 | N/A | Relief-from-royalty | ||||||||||||
Trade names | 638 | 20-Mar | Relief-from-royalty | |||||||||||||
Customer relationships | 2,510 | 13-18 | Multi-period excess earnings | |||||||||||||
Technology | 767 | 20-Apr | Relief-from-royalty; | |||||||||||||
Multi-period excess earnings | ||||||||||||||||
Contract-based | 44 | 9.5 | Relief-from-royalty | |||||||||||||
$ | 5,369 | |||||||||||||||
Debt
Debt | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Debt Disclosure [Abstract] | ' | |||||||
Long-term Debt | ' | |||||||
DEBT | ||||||||
A summary of long-term debt, including the current portion, follows: | ||||||||
2013 | 2012 | |||||||
4.90% notes due 2013 | $ | — | $ | 300 | ||||
5.95% notes due 2014 ($100 converted to floating rate by interest rate swap) | 250 | 250 | ||||||
Floating rate notes due 2014 ($300 converted to fixed rate by interest rate swap) | 300 | 300 | ||||||
5.45% debentures due 2015 | 300 | 300 | ||||||
4.65% notes due 2015 | 100 | 100 | ||||||
0.95% senior notes due 2015 | 600 | 600 | ||||||
2.375% debentures due 2016 | 240 | 250 | ||||||
5.30% notes due 2017 ($150 converted to floating rate by interest rate swap) | 250 | 250 | ||||||
6.10% debentures due 2017 | 289 | 300 | ||||||
1.50% senior notes due 2017 ($450 converted to floating rate by interest rate swap) | 1,000 | 1,000 | ||||||
5.60% notes due 2018 ($415 converted to floating rate by interest rate swap) | 450 | 450 | ||||||
4.215% Japanese Yen notes due 2018 | 95 | 116 | ||||||
6.95% notes due 2019 ($300 converted to floating rate by interest rate swap) | 300 | 300 | ||||||
3.875% debentures due 2020 ($150 converted to floating rate by interest rate swap) | 239 | 250 | ||||||
3.47% notes due 2021 ($150 converted to floating rate by interest rate swap) | 300 | 300 | ||||||
8.10% debentures due 2022 | 100 | 100 | ||||||
2.75% senior notes due 2022 ($1,100 converted to floating rate by interest rate swap) | 1,600 | 1,600 | ||||||
3.68% notes due 2023 ($150 converted to floating rate by interest rate swap) | 300 | 300 | ||||||
6.50% debentures due 2025 | 145 | 145 | ||||||
7.65% debentures due 2029 ($50 converted to floating rate by interest rate swap) | 200 | 200 | ||||||
4.00% senior notes due 2032 | 700 | 700 | ||||||
5.45% debentures due 2034 ($25 converted to floating rate by interest rate swap) | 136 | 140 | ||||||
5.80% notes due 2037 | 240 | 240 | ||||||
4.15% senior notes due 2042 | 1,000 | 1,000 | ||||||
5.25% to 12.5% notes (maturities ranging from 2013 to 2035, including $50 converted to | 249 | 255 | ||||||
floating rate by interest rate swap) | ||||||||
Other | 153 | 333 | ||||||
Total long-term debt | 9,536 | 10,079 | ||||||
Less current portion of long-term debt | (567 | ) | (314 | ) | ||||
Long-term debt less current portion | $ | 8,969 | $ | 9,765 | ||||
At December 31, 2013, short-term debt of $13 was comprised entirely of short-term debt outside the United States. Short-term debt of $757 at December 31, 2012 included an outstanding borrowing of $669 on a $6.75 billion, 364-day bridge facility, as described below, $75 of short-term commercial paper in the United States which had a weighted-average interest rate of 0.50%, $9 of other short-term debt in the United States, and $4 of short-term debt outside the United States. Borrowings outside the United States are generally denominated in local currencies. Operations outside the United States had available short-term lines of credit of $2,069 from various banks worldwide at December 31, 2013. | ||||||||
On November 30, 2012, the closing date of the acquisition of Cooper, Eaton borrowed $1,669 on a $6.75 billion, 364-day bridge facility (the Facility) which was obtained on May 21, 2012. The Facility was obtained to finance a portion of the cash paid to acquire Cooper and was available in a single draw on the closing date of the acquisition. Related deferred financing fees totaled $69, of which $68 were amortized in Interest expense - net as of December 31, 2012. On February 1, 2013, Eaton repaid the outstanding balance on the Facility. | ||||||||
On November 20, 2012, Eaton issued senior notes (the Senior Notes) totaling $4,900 to finance the cash portion of the acquisition of Cooper. The Senior Notes are comprised of five tranches which mature in 2015, 2017, 2022, 2032 and 2042, with interest payable semi-annually at a respective rate of 0.95%, 1.50%, 2.75%, 4.00% and 4.15%. Eaton received proceeds totaling $4,853 from the issuance, net of financing costs and nominal discounts. The Senior Notes are fully and unconditionally guaranteed on an unsubordinated, unsecured basis by Eaton and certain of its direct and indirect subsidiaries. The Senior Notes contain an optional redemption provision by which the Company may make an offer to purchase all or any part of the Senior Notes at a purchase price of the greater of (a) 100% of the principal amount of the respective Senior Notes being redeemed, or (b) the sum of the present values of the respective remaining scheduled payments of principal and interest, discounted to the redemption date on a semi-annual basis, plus basis points ranging from 10 to 25 based on the respective Senior Note tranche. The Senior Notes also contain a change of control provision which requires the Company to make an offer to purchase all or any part of the Senior Notes at a purchase price of 101% of the principal amount plus accrued and unpaid interest. At December 31, 2012, capitalized deferred financing fees totaled $40. The capitalized deferred financing fees and nominal discounts are amortized in Interest expense - net over the respective terms of the Senior Notes. The Senior Notes are subject to customary non-financial covenants. On November 14, 2013, the Senior Notes were exchanged for Senior Notes registered under the Securities Act of 1933. See Note 15 for additional information about the Senior Notes. | ||||||||
On June 28, 2012, Eaton received proceeds totaling $600 from the private issuance of $300, 3.47% notes due June 28, 2021 and $300, 3.68% notes due June 28, 2023 (collectively, the Notes). Interest is payable semi-annually. The Notes contain a change of control provision which requires the Company to make an offer to purchase all or any part of the Notes at a purchase price of 100% of the principal amount plus accrued and unpaid interest. The Notes are subject to certain customary covenants and are fully and unconditionally guaranteed on an unsubordinated, unsecured basis by Eaton and certain of its direct and indirect subsidiaries. | ||||||||
On June 14, 2012, Eaton refinanced a $500, three-year revolving credit facility and a $500, five-year revolving credit facility with a $750 three-year revolving credit facility that will expire June 14, 2015 and a $750, five-year revolving credit facility that will expire June 14, 2017, respectively. Eaton also maintains a $500, five-year revolving credit facility that expires in 2016. The 2012 refinancings increased long-term revolving credit facilities from $1,500 to $2,000. The revolving credit facilities are used to support commercial paper borrowings and are fully and unconditionally guaranteed by Eaton and certain of its direct and indirect subsidiaries, including Cooper on an unsubordinated, unsecured basis. There were no borrowings outstanding under Eaton's revolving credit facilities at December 31, 2013 or 2012. | ||||||||
Eaton is in compliance with each of its debt covenants for all periods presented. Eaton Corporation and Cooper each issued guarantees on November 30, 2012 and January 8, 2013, respectively, on all material outstanding debt of the other. | ||||||||
Mandatory maturities of long-term debt for each of the next five years follow: | ||||||||
2014 | $ | 567 | ||||||
2015 | 1,005 | |||||||
2016 | 250 | |||||||
2017 | 1,540 | |||||||
2018 | 582 | |||||||
Interest paid on debt follows: | ||||||||
2013 | $ | 294 | ||||||
2012 | 237 | |||||||
2011 | 174 | |||||||
Retirement_Benefits_Plans
Retirement Benefits Plans | 12 Months Ended | |||||||||||||||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||||||||||||||
General Discussion of Pension and Other Postretirement Benefits [Abstract] | ' | |||||||||||||||||||||||||||||||||||
RETIREMENT BENEFITS PLANS | ' | |||||||||||||||||||||||||||||||||||
RETIREMENT BENEFITS PLANS | ||||||||||||||||||||||||||||||||||||
Eaton has defined benefits pension plans and other postretirement benefits plans. | ||||||||||||||||||||||||||||||||||||
Obligations and Funded Status | ||||||||||||||||||||||||||||||||||||
United States | Non-United States | Other postretirement | ||||||||||||||||||||||||||||||||||
pension liabilities | pension liabilities | liabilities | ||||||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||||||
Funded status | ||||||||||||||||||||||||||||||||||||
Fair value of plan assets | $ | 2,940 | $ | 2,607 | $ | 1,432 | $ | 1,248 | $ | 138 | $ | 146 | ||||||||||||||||||||||||
Benefit obligations | (3,625 | ) | (3,817 | ) | (2,127 | ) | (2,017 | ) | (867 | ) | (950 | ) | ||||||||||||||||||||||||
Funded status | $ | (685 | ) | $ | (1,210 | ) | $ | (695 | ) | $ | (769 | ) | $ | (729 | ) | $ | (804 | ) | ||||||||||||||||||
Amounts recognized in the Consolidated | ||||||||||||||||||||||||||||||||||||
Balance Sheets | ||||||||||||||||||||||||||||||||||||
Non-current assets | $ | 44 | $ | — | $ | 86 | $ | 72 | $ | — | $ | — | ||||||||||||||||||||||||
Current liabilities | (15 | ) | (15 | ) | (30 | ) | (33 | ) | (61 | ) | (62 | ) | ||||||||||||||||||||||||
Non-current liabilities | (714 | ) | (1,195 | ) | (751 | ) | (808 | ) | (668 | ) | (742 | ) | ||||||||||||||||||||||||
Total | $ | (685 | ) | $ | (1,210 | ) | $ | (695 | ) | $ | (769 | ) | $ | (729 | ) | $ | (804 | ) | ||||||||||||||||||
Amounts recognized in Accumulated other | ||||||||||||||||||||||||||||||||||||
comprehensive loss (pretax) | ||||||||||||||||||||||||||||||||||||
Net actuarial loss | $ | 1,051 | $ | 1,618 | $ | 515 | $ | 550 | $ | 190 | $ | 269 | ||||||||||||||||||||||||
Prior service cost (credit) | 3 | 1 | 13 | 9 | (6 | ) | (7 | ) | ||||||||||||||||||||||||||||
Other | — | 2 | — | — | — | — | ||||||||||||||||||||||||||||||
Total | $ | 1,054 | $ | 1,621 | $ | 528 | $ | 559 | $ | 184 | $ | 262 | ||||||||||||||||||||||||
Change in Benefit Obligations | ||||||||||||||||||||||||||||||||||||
United States | Non-United States | Other postretirement | ||||||||||||||||||||||||||||||||||
pension liabilities | pension liabilities | liabilities | ||||||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||||||
Balance at January 1 | $ | 3,817 | $ | 2,899 | $ | 2,017 | $ | 1,505 | $ | 950 | $ | 853 | ||||||||||||||||||||||||
Service cost | 128 | 115 | 62 | 50 | 20 | 17 | ||||||||||||||||||||||||||||||
Interest cost | 147 | 134 | 80 | 77 | 35 | 38 | ||||||||||||||||||||||||||||||
Actuarial (gain) loss | (223 | ) | 264 | 21 | 196 | (54 | ) | 34 | ||||||||||||||||||||||||||||
Gross benefits paid | (246 | ) | (132 | ) | (90 | ) | (78 | ) | (103 | ) | (94 | ) | ||||||||||||||||||||||||
Currency translation | — | — | 36 | 54 | (2 | ) | — | |||||||||||||||||||||||||||||
Acquisitions | — | 536 | — | 212 | — | 74 | ||||||||||||||||||||||||||||||
Other | 2 | 1 | 1 | 1 | 21 | 28 | ||||||||||||||||||||||||||||||
Balance at December 31 | $ | 3,625 | $ | 3,817 | $ | 2,127 | $ | 2,017 | $ | 867 | $ | 950 | ||||||||||||||||||||||||
Accumulated benefit obligation | $ | 3,458 | $ | 3,639 | $ | 2,003 | $ | 1,885 | ||||||||||||||||||||||||||||
Change in Plan Assets | ||||||||||||||||||||||||||||||||||||
United States | Non-United States | Other postretirement | ||||||||||||||||||||||||||||||||||
pension liabilities | pension liabilities | liabilities | ||||||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||||||
Balance at January 1 | $ | 2,607 | $ | 1,664 | $ | 1,248 | $ | 989 | $ | 146 | $ | 156 | ||||||||||||||||||||||||
Actual return on plan assets | 383 | 293 | 118 | 86 | 15 | 13 | ||||||||||||||||||||||||||||||
Employer contributions | 196 | 311 | 145 | 102 | 59 | 43 | ||||||||||||||||||||||||||||||
Gross benefits paid | (246 | ) | (132 | ) | (90 | ) | (78 | ) | (103 | ) | (94 | ) | ||||||||||||||||||||||||
Currency translation | — | — | 15 | 39 | — | — | ||||||||||||||||||||||||||||||
Acquisitions | — | 471 | — | 128 | — | — | ||||||||||||||||||||||||||||||
Other | — | — | (4 | ) | (18 | ) | 21 | 28 | ||||||||||||||||||||||||||||
Balance at December 31 | $ | 2,940 | $ | 2,607 | $ | 1,432 | $ | 1,248 | $ | 138 | $ | 146 | ||||||||||||||||||||||||
The components of pension plans with an accumulated benefit obligation in excess of plan assets at December 31 follow: | ||||||||||||||||||||||||||||||||||||
United States | Non-United States | |||||||||||||||||||||||||||||||||||
pension liabilities | pension liabilities | |||||||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||||||||
Projected benefit obligation | $ | 3,166 | $ | 3,817 | $ | 1,411 | $ | 1,412 | ||||||||||||||||||||||||||||
Accumulated benefit obligation | 2,999 | 3,639 | 1,349 | 1,307 | ||||||||||||||||||||||||||||||||
Fair value of plan assets | 2,437 | 2,607 | 635 | 657 | ||||||||||||||||||||||||||||||||
Changes in pension and other postretirement benefit liabilities recognized in Accumulated other comprehensive loss follow: | ||||||||||||||||||||||||||||||||||||
United States | Non-United States | Other postretirement | ||||||||||||||||||||||||||||||||||
pension liabilities | pension liabilities | liabilities | ||||||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||||||
Balance at January 1 | $ | 1,621 | $ | 1,602 | $ | 559 | $ | 358 | $ | 262 | $ | 248 | ||||||||||||||||||||||||
Prior service cost arising during the year | 2 | 1 | 4 | — | — | — | ||||||||||||||||||||||||||||||
Net (gain) loss arising during the year | (381 | ) | 154 | (12 | ) | 205 | (63 | ) | 27 | |||||||||||||||||||||||||||
Currency translation | — | — | 6 | 15 | (1 | ) | — | |||||||||||||||||||||||||||||
Less amounts included in expense during the year | (186 | ) | (138 | ) | (29 | ) | (19 | ) | (14 | ) | (13 | ) | ||||||||||||||||||||||||
Other | (2 | ) | 2 | — | — | — | — | |||||||||||||||||||||||||||||
Net change for the year | (567 | ) | 19 | (31 | ) | 201 | (78 | ) | 14 | |||||||||||||||||||||||||||
Balance at December 31 | $ | 1,054 | $ | 1,621 | $ | 528 | $ | 559 | $ | 184 | $ | 262 | ||||||||||||||||||||||||
Benefits Expense | ||||||||||||||||||||||||||||||||||||
United States | Non-United States | Other postretirement | ||||||||||||||||||||||||||||||||||
pension benefit expense | pension benefit expense | benefits expense | ||||||||||||||||||||||||||||||||||
2013 | 2012 | 2011 | 2013 | 2012 | 2011 | 2013 | 2012 | 2011 | ||||||||||||||||||||||||||||
Service cost | $ | 128 | $ | 115 | $ | 93 | $ | 62 | $ | 50 | $ | 48 | $ | 20 | $ | 17 | $ | 15 | ||||||||||||||||||
Interest cost | 147 | 134 | 132 | 80 | 77 | 78 | 35 | 38 | 41 | |||||||||||||||||||||||||||
Expected return on plan assets | (226 | ) | (183 | ) | (164 | ) | (85 | ) | (77 | ) | (70 | ) | (6 | ) | (6 | ) | — | |||||||||||||||||||
Amortization | 133 | 118 | 75 | 27 | 15 | 13 | 14 | 13 | 12 | |||||||||||||||||||||||||||
182 | 184 | 136 | 84 | 65 | 69 | 63 | 62 | 68 | ||||||||||||||||||||||||||||
Curtailment loss | — | — | — | 1 | 1 | 1 | — | — | — | |||||||||||||||||||||||||||
Settlement loss | 53 | 20 | 17 | 1 | 3 | 4 | — | — | — | |||||||||||||||||||||||||||
Total expense | $ | 235 | $ | 204 | $ | 153 | $ | 86 | $ | 69 | $ | 74 | $ | 63 | $ | 62 | $ | 68 | ||||||||||||||||||
The estimated pretax net amounts that will be recognized from Accumulated other comprehensive loss into net periodic benefit cost in 2014 follow: | ||||||||||||||||||||||||||||||||||||
United States | Non-United States | Other postretirement | ||||||||||||||||||||||||||||||||||
pension liabilities | pension liabilities | liabilities | ||||||||||||||||||||||||||||||||||
Actuarial loss | $ | 155 | $ | 26 | $ | 9 | ||||||||||||||||||||||||||||||
Prior service cost (credit) | — | 1 | (2 | ) | ||||||||||||||||||||||||||||||||
Total | $ | 155 | $ | 27 | $ | 7 | ||||||||||||||||||||||||||||||
Retirement Benefits Plans Assumptions | ||||||||||||||||||||||||||||||||||||
Pension Plans | ||||||||||||||||||||||||||||||||||||
United States | Non-United States | |||||||||||||||||||||||||||||||||||
pension plans | pension plans | |||||||||||||||||||||||||||||||||||
2013 | 2012 | 2011 | 2013 | 2012 | 2011 | |||||||||||||||||||||||||||||||
Assumptions used to determine benefit obligation at year-end | ||||||||||||||||||||||||||||||||||||
Discount rate | 4.67 | % | 3.97 | % | 4.7 | % | 4.2 | % | 4.17 | % | 5.12 | % | ||||||||||||||||||||||||
Rate of compensation increase | 3.16 | % | 3.16 | % | 3.15 | % | 3.12 | % | 3.09 | % | 3.62 | % | ||||||||||||||||||||||||
Assumptions used to determine expense | ||||||||||||||||||||||||||||||||||||
Discount rate | 3.97 | % | 4.7 | % | 5.5 | % | 4.17 | % | 5.12 | % | 5.4 | % | ||||||||||||||||||||||||
Expected long-term return on plan assets | 8.45 | % | 8.5 | % | 8.5 | % | 6.92 | % | 7.1 | % | 7.17 | % | ||||||||||||||||||||||||
Rate of compensation increase | 3.16 | % | 3.15 | % | 3.61 | % | 3.09 | % | 3.62 | % | 3.63 | % | ||||||||||||||||||||||||
The expected long-term rate of return on pension assets was determined for each country and reflects long-term historical data taking into account each plan's target asset allocation. The discount rate was determined using appropriate bond data for each country. | ||||||||||||||||||||||||||||||||||||
Other Postretirement Benefits Plans | ||||||||||||||||||||||||||||||||||||
Substantially all of the obligation for other postretirement benefits plans relates to United States plans. Assumptions used to determine other postretirement benefits obligations and expense follow: | ||||||||||||||||||||||||||||||||||||
Other postretirement | ||||||||||||||||||||||||||||||||||||
benefits plans | ||||||||||||||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||||||||||||||
Assumptions used to determine benefit obligation at year-end | ||||||||||||||||||||||||||||||||||||
Discount rate | 4.48 | % | 3.79 | % | 4.6 | % | ||||||||||||||||||||||||||||||
Health care cost trend rate assumed for next year | 6.64 | % | 6.96 | % | 7.6 | % | ||||||||||||||||||||||||||||||
Ultimate health care cost trend rate | 4.77 | % | 4.53 | % | 4.5 | % | ||||||||||||||||||||||||||||||
Year ultimate health care cost trend rate is achieved | 2023 | 2022 | 2020 | |||||||||||||||||||||||||||||||||
Assumptions used to determine expense | ||||||||||||||||||||||||||||||||||||
Discount rate | 3.79 | % | 4.6 | % | 5.2 | % | ||||||||||||||||||||||||||||||
Initial health care cost trend rate | 6.96 | % | 7.6 | % | 8.1 | % | ||||||||||||||||||||||||||||||
Ultimate health care cost trend rate | 4.53 | % | 4.5 | % | 4.5 | % | ||||||||||||||||||||||||||||||
Year ultimate health care cost trend rate is achieved | 2022 | 2020 | 2020 | |||||||||||||||||||||||||||||||||
Assumed health care cost trend rates may have a significant effect on the amounts reported for the health care plans. A 1-percentage point change in the assumed health care cost trend rates would have the following effects: | ||||||||||||||||||||||||||||||||||||
1% increase | 1% decrease | |||||||||||||||||||||||||||||||||||
Effect on total service and interest cost | $ | 1 | $ | (1 | ) | |||||||||||||||||||||||||||||||
Effect on other postretirement liabilities | 21 | (19 | ) | |||||||||||||||||||||||||||||||||
Employer Contributions to Retirement Benefits Plans | ||||||||||||||||||||||||||||||||||||
Contributions to pension plans that Eaton expects to make in 2014, and made in 2013, 2012 and 2011, follow: | ||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | 2011 | |||||||||||||||||||||||||||||||||
United States plans | $ | 254 | $ | 196 | $ | 311 | $ | 264 | ||||||||||||||||||||||||||||
Non-United States plans | 108 | 145 | 102 | 108 | ||||||||||||||||||||||||||||||||
Total contributions | $ | 362 | $ | 341 | $ | 413 | $ | 372 | ||||||||||||||||||||||||||||
During 2011, Eaton contributed $154 into a Voluntary Employee Benefit Association (VEBA) trust for the pre-funding of postretirement Medicare Part D prescription drug benefits for the Company's eligible United States employees and retirees. | ||||||||||||||||||||||||||||||||||||
The following table provides the estimated pension and other postretirement benefit payments for each of the next five years, and the five years thereafter in the aggregate. For other postretirement benefits liabilities, the expected subsidy receipts relate to the Medicare Prescription Drug, Improvement, and Modernization Act of 2003, which would reduce the gross payments listed below. | ||||||||||||||||||||||||||||||||||||
Estimated | Estimated | Estimated other postretirement | ||||||||||||||||||||||||||||||||||
United States | non-United States | benefit payments | ||||||||||||||||||||||||||||||||||
pension payments | pension payments | Gross | Medicare prescription | |||||||||||||||||||||||||||||||||
drug subsidy | ||||||||||||||||||||||||||||||||||||
2014 | $ | 314 | $ | 91 | $ | 93 | $ | (6 | ) | |||||||||||||||||||||||||||
2015 | 256 | 92 | 86 | (6 | ) | |||||||||||||||||||||||||||||||
2016 | 273 | 94 | 82 | (6 | ) | |||||||||||||||||||||||||||||||
2017 | 277 | 99 | 78 | (5 | ) | |||||||||||||||||||||||||||||||
2018 | 283 | 101 | 74 | (4 | ) | |||||||||||||||||||||||||||||||
2019 - 2023 | 1,499 | 545 | 316 | (13 | ) | |||||||||||||||||||||||||||||||
Pension Plan Assets | ||||||||||||||||||||||||||||||||||||
Investment policies and strategies are developed on a country specific basis. The United States plans, representing 67% of worldwide pension assets, and the United Kingdom plans representing 26% of worldwide pension assets, are invested primarily for growth, as the majority of the assets are in plans with active participants and ongoing accruals. In general, the plans have their primary allocation to diversified, global equities, primarily through index funds in the form of common collective trusts. The United States plans' target allocation is 36% United States equities, 32% non-United States equities, 7% real estate (primarily equity of real estate investment trusts) and 25% debt securities and other, including cash equivalents. The United Kingdom plans' target asset allocations are 57% equities and the remainder in debt securities and real estate investments. The equity risk for the plans is managed through broad geographic diversification and diversification across industries and levels of market capitalization. The majority of debt allocations for these plans are longer duration government and corporate debt. The United States pension plans are authorized to use derivatives to achieve more economically desired market exposures and to use futures, swaps and options to gain or hedge exposures. | ||||||||||||||||||||||||||||||||||||
Other Postretirement Benefits Plan Assets | ||||||||||||||||||||||||||||||||||||
The VEBA trust which holds U.S. other postretirement benefits plan assets has investment guidelines that include allocations to global equities and fixed income investments. The trust's target investment allocation is 50% diversified global equities and 50% fixed income securities. The fixed income securities are primarily comprised of intermediate term, high quality, dollar denominated, fixed income instruments. The equity allocation is invested in a diversified global equity index fund in the form of a collective trust. | ||||||||||||||||||||||||||||||||||||
Fair Value Measurements | ||||||||||||||||||||||||||||||||||||
Financial instruments included in pension and other postretirement benefits plan assets are categorized into a fair value hierarchy of three levels, based on the degree of subjectivity inherent in the valuation methodology as follows: | ||||||||||||||||||||||||||||||||||||
Level 1 - | Quoted prices (unadjusted) for identical assets in active markets. | |||||||||||||||||||||||||||||||||||
Level 2 - | Quoted prices for similar assets in active markets, and inputs that are observable for the asset, either directly or indirectly, for substantially the full term of the financial instrument. | |||||||||||||||||||||||||||||||||||
Level 3 - | Unobservable prices or inputs. | |||||||||||||||||||||||||||||||||||
Pension Plans | ||||||||||||||||||||||||||||||||||||
A summary of the fair value of pension plan assets at December 31, 2013 and 2012, follows: | ||||||||||||||||||||||||||||||||||||
Total | Quoted prices | Other | Unobservable | |||||||||||||||||||||||||||||||||
in active | observable | inputs | ||||||||||||||||||||||||||||||||||
markets for | inputs | (Level 3) | ||||||||||||||||||||||||||||||||||
identical assets | (Level 2) | |||||||||||||||||||||||||||||||||||
(Level 1) | ||||||||||||||||||||||||||||||||||||
2013 | ||||||||||||||||||||||||||||||||||||
Common collective trusts | ||||||||||||||||||||||||||||||||||||
Non-United States equity and global equities | $ | 1,453 | $ | — | $ | 1,453 | $ | — | ||||||||||||||||||||||||||||
United States equity | 1,153 | — | 1,153 | — | ||||||||||||||||||||||||||||||||
Fixed income | 609 | — | 609 | — | ||||||||||||||||||||||||||||||||
Long duration funds | 63 | — | 63 | — | ||||||||||||||||||||||||||||||||
Exchange traded funds | 64 | — | 64 | — | ||||||||||||||||||||||||||||||||
Fixed income securities | 274 | — | 274 | — | ||||||||||||||||||||||||||||||||
United States treasuries | 63 | 63 | — | — | ||||||||||||||||||||||||||||||||
Real estate securities | 220 | 214 | — | 6 | ||||||||||||||||||||||||||||||||
Equity securities | 141 | 141 | — | — | ||||||||||||||||||||||||||||||||
Cash equivalents | 187 | 6 | 181 | — | ||||||||||||||||||||||||||||||||
Exchange traded funds | 47 | 47 | — | — | ||||||||||||||||||||||||||||||||
Other | 98 | — | 4 | 94 | ||||||||||||||||||||||||||||||||
Total pension plan assets | $ | 4,372 | $ | 471 | $ | 3,801 | $ | 100 | ||||||||||||||||||||||||||||
Total | Quoted prices | Other | Unobservable | |||||||||||||||||||||||||||||||||
in active | observable | inputs | ||||||||||||||||||||||||||||||||||
markets for | inputs | (Level 3) | ||||||||||||||||||||||||||||||||||
identical assets | (Level 2) | |||||||||||||||||||||||||||||||||||
(Level 1) | ||||||||||||||||||||||||||||||||||||
2012 | ||||||||||||||||||||||||||||||||||||
Common collective trusts | ||||||||||||||||||||||||||||||||||||
Non-United States equity and global equities | $ | 1,313 | $ | — | $ | 1,313 | $ | — | ||||||||||||||||||||||||||||
United States equity | 978 | — | 978 | — | ||||||||||||||||||||||||||||||||
Fixed income | 538 | — | 538 | — | ||||||||||||||||||||||||||||||||
Long duration funds | 61 | — | 61 | — | ||||||||||||||||||||||||||||||||
Exchange traded funds | 43 | — | 43 | — | ||||||||||||||||||||||||||||||||
Fixed income securities | 331 | — | 331 | — | ||||||||||||||||||||||||||||||||
United States treasuries | 143 | 143 | — | — | ||||||||||||||||||||||||||||||||
Real estate securities | 124 | 119 | — | 5 | ||||||||||||||||||||||||||||||||
Equity securities | 104 | 104 | — | — | ||||||||||||||||||||||||||||||||
Cash equivalents | 140 | 7 | 133 | — | ||||||||||||||||||||||||||||||||
Exchange traded funds | 40 | 40 | — | — | ||||||||||||||||||||||||||||||||
Other | 40 | 3 | 1 | 36 | ||||||||||||||||||||||||||||||||
Total pension plan assets | $ | 3,855 | $ | 416 | $ | 3,398 | $ | 41 | ||||||||||||||||||||||||||||
Other Postretirement Benefits Plans | ||||||||||||||||||||||||||||||||||||
A summary of the fair value of other postretirement benefits plan assets at December 31, 2013 and 2012, follows: | ||||||||||||||||||||||||||||||||||||
Total | Quoted prices | Other | Unobservable | |||||||||||||||||||||||||||||||||
in active | observable | inputs | ||||||||||||||||||||||||||||||||||
markets for | inputs | (Level 3) | ||||||||||||||||||||||||||||||||||
identical assets | (Level 2) | |||||||||||||||||||||||||||||||||||
(Level 1) | ||||||||||||||||||||||||||||||||||||
2013 | ||||||||||||||||||||||||||||||||||||
Common collective trusts | ||||||||||||||||||||||||||||||||||||
Global equities | $ | 70 | $ | — | $ | 70 | $ | — | ||||||||||||||||||||||||||||
Fixed income securities | 29 | — | 29 | — | ||||||||||||||||||||||||||||||||
United States treasuries | 38 | 38 | — | — | ||||||||||||||||||||||||||||||||
Cash equivalents | 1 | 1 | — | — | ||||||||||||||||||||||||||||||||
Total other postretirement benefits plan assets | $ | 138 | $ | 39 | $ | 99 | $ | — | ||||||||||||||||||||||||||||
2012 | ||||||||||||||||||||||||||||||||||||
Common collective trusts | ||||||||||||||||||||||||||||||||||||
Global equities | $ | 75 | $ | — | $ | 75 | $ | — | ||||||||||||||||||||||||||||
Fixed income securities | 29 | — | 29 | — | ||||||||||||||||||||||||||||||||
United States treasuries | 38 | 38 | — | — | ||||||||||||||||||||||||||||||||
Cash equivalents | 4 | 4 | — | — | ||||||||||||||||||||||||||||||||
Total other postretirement benefits plan assets | $ | 146 | $ | 42 | $ | 104 | $ | — | ||||||||||||||||||||||||||||
Valuation Methodologies | ||||||||||||||||||||||||||||||||||||
Following is a description of the valuation methodologies used for pension and other postretirement benefits plan assets measured at fair value. There have been no changes in the methodologies used at December 31, 2013 and 2012. | ||||||||||||||||||||||||||||||||||||
Common collective trusts - Valued at the net unit value of units held by the trust at year end. The unit value is determined by the total value of fund assets divided by the total number of units of the fund owned. The equity investments in collective trusts are predominantly in index funds for which the underlying securities are actively traded in public markets based upon readily measurable prices. | ||||||||||||||||||||||||||||||||||||
Fixed income securities - These securities consist of publicly traded United States and non-United States fixed interest obligations (principally corporate and government bonds and debentures). The fair value of corporate and government debt securities is determined through third-party pricing models that consider various assumptions, including time value, yield curves, credit ratings, and current market prices. The Company verifies the results of trustees or custodians and evaluates the pricing classification of these securities by performing analyses using other third-party sources. | ||||||||||||||||||||||||||||||||||||
United States treasuries - Valued at the closing price of each security. | ||||||||||||||||||||||||||||||||||||
Real estate and equity securities - These securities consist of direct investments in the stock of publicly traded companies. Such investments are valued based on the closing price reported in an active market on which the individual securities are traded. As such, the direct investments are classified as Level 1. | ||||||||||||||||||||||||||||||||||||
Cash equivalents - Primarily certificates of deposit, commercial paper, and repurchase agreements. | ||||||||||||||||||||||||||||||||||||
Exchange traded funds - Valued at the closing price of the exchange traded fund's shares. | ||||||||||||||||||||||||||||||||||||
Other - Primarily insurance contracts for international plans and also futures contracts and over-the-counter options. These investments are valued based on the closing prices of future contracts or indices as available on the Bloomberg or similar service, and private equity investments. | ||||||||||||||||||||||||||||||||||||
For additional information regarding fair value measurements, see Note 11. | ||||||||||||||||||||||||||||||||||||
Defined Contribution Plans | ||||||||||||||||||||||||||||||||||||
The Company has various defined contribution benefit plans, primarily consisting of the plans in the United States. The total contributions related to these plans are charged to expense and were as follows: | ||||||||||||||||||||||||||||||||||||
2013 | $ | 121 | ||||||||||||||||||||||||||||||||||
2012 | 74 | |||||||||||||||||||||||||||||||||||
2011 | 65 | |||||||||||||||||||||||||||||||||||
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||||||||||
Commitments and Contingencies | ' | |||||||||||
COMMITMENTS AND CONTINGENCIES | ||||||||||||
Legal Contingencies | ||||||||||||
Eaton is subject to a broad range of claims, administrative and legal proceedings such as lawsuits that relate to contractual allegations, tax audits, patent infringement, personal injuries (including asbestos claims), antitrust matters, and employment-related matters. Although it is not possible to predict with certainty the outcome or cost of these matters, the Company believes they will not have a material effect on the consolidated financial statements. | ||||||||||||
In December 2010, a Brazilian court held that a judgment obtained by a Brazilian company, Raysul, against another Brazilian company, Saturnia, which was sold by Eaton in 2006, could be enforced against Eaton Ltda. This judgment is based on an alleged violation of an agency agreement between Raysul and Saturnia. At December 31, 2013, the Company has a total accrual of 76 Brazilian Reais related to this matter ($32 based on current exchange rates), comprised of 60 Brazilian Reais recognized in the fourth quarter of 2010 ($25 based on current exchange rates) with an additional 16 Brazilian Reais recognized through December 31, 2013 ($7 based on current exchange rates) due to subsequent accruals for interest and inflation. In 2010, Eaton filed motions for clarification with the Brazilian court of appeals which were denied on April 6, 2011. Eaton Holding and Eaton Ltda. filed appeals on various issues to the Superior Court of Justice in Brasilia. In April 2013, the Superior Court of Justice ruled in favor of Raysul. Additional motions for clarification have been filed with the Superior Court of Justice in Brasilia and an additional appeal is being considered. The Company expects that any sum it may be required to pay in connection with this matter will not exceed the amount of the recorded liability. | ||||||||||||
On October 5, 2006, ZF Meritor LLC and Meritor Transmission Corporation (collectively, Meritor) filed an action against Eaton in the United States District Court for Delaware. The action sought damages, which would be trebled under United States antitrust laws, as well as injunctive relief and costs. The suit alleged that Eaton engaged in anti-competitive conduct against Meritor in the sale of heavy-duty truck transmissions in North America. Following a four week trial on liability only, on October 8, 2009, the jury returned a verdict in favor of Meritor. Eaton firmly believes that it competes fairly and honestly for business in the marketplace, and that at no time did it act in an anti-competitive manner. During an earlier stage in the case, the judge concluded that damage estimates contained in a report filed by Meritor were not based on reliable data and the report was specifically excluded from the case. On November 3, 2009, Eaton filed a motion for judgment as a matter of law and to set aside the verdict. That motion was denied on March 10, 2011. On March 14, 2011, Eaton filed a motion for entry of final judgment of liability, zero damages and no injunctive relief. That motion was denied on June 9, 2011. On August 19, 2011, the Court entered final judgment of liability but awarded zero damages to plaintiffs. The Court also entered an injunction prohibiting Eaton from offering rebates or other incentives based on purchasing targets but stayed the injunction pending appeal. Eaton appealed the liability finding and the injunction to the Third Circuit Court of Appeals. Meritor cross-appealed the finding of zero damages. On September 28, 2012, the Third Circuit Court of Appeals affirmed the District Court's denial of Eaton's motion for judgment as a matter of law, and let stand the jury verdict in favor of Meritor. The Third Circuit Court of Appeals also ruled that the plaintiffs' damages report was properly excluded, but reversed the judgment of zero damages and ordered that the District Court must allow plaintiffs a limited opportunity to amend the damages report, which could be re-considered for reliability and admissibility. Injunctive relief also was vacated. On remand to the District Court, plaintiffs submitted an amended damages report in which their expert opined that damages range between $475 and $800. On December 20, 2013, the District Court ruled that the plaintiffs' damages expert could testify at trial and be subjected to cross-examination. The District Court held a status conference on January 14, 2014 at which it stated that a damages trial will be scheduled in 2014. Eaton's damages expert opined that damages are zero. An estimate of any potential loss related to this action cannot be made at this time. | ||||||||||||
Frisby Corporation, now known as Triumph Actuation Systems, LLC, and other claimants (collectively, the Frisby Parties) asserted claims alleging, among other things, unfair competition, defamation, malicious prosecution, deprivation of civil rights, and antitrust in the Hinds County Circuit Court of Mississippi in 2004 and in the Federal District Court of North Carolina in 2011. Eaton had asserted claims against the Frisby Parties regarding improper use of trade secrets and these claims were dismissed by the Hinds County Circuit Court. On September 25, 2013, the Mississippi Supreme Court issued an order that stayed all proceedings in the Hinds County Circuit Court pending further order of the Mississippi Supreme Court. On November 21, 2013, the Mississippi Supreme Court upheld the dismissal of Eaton's claims but did not lift the stay on all proceedings in the Hinds County Circuit Court. Prior to the stay, the Frisby Parties submitted various expert damage designations related to their claims to the Hinds County Circuit Court, claiming damages of at least $376. Eaton disputes liability to the Frisby Parties and Eaton's experts dispute the amount of damages claimed by the experts for the Frisby Parties. An estimate of any potential loss related to this action cannot be made at this time. | ||||||||||||
Environmental Contingencies | ||||||||||||
Eaton has established policies to ensure that its operations are conducted in keeping with good corporate citizenship and with a positive commitment to the protection of the natural and workplace environments. The Company's manufacturing facilities are required to be certified to ISO 14001, an international standard for environmental management systems. The Company routinely reviews EHS performance at each of its facilities and continuously strives to improve pollution prevention. | ||||||||||||
Eaton is involved in remedial response and voluntary environmental remediation at a number of sites, including certain of its currently-owned or formerly-owned plants. The Company has also been named a potentially responsible party under the United States federal Superfund law, or the state equivalents thereof, at a number of disposal sites. The Company became involved in these sites through the Company's voluntary decision, in connection with business acquisitions, or as a result of government action. At the end of 2013, the Company was involved with a total of 149 sites worldwide, including the Superfund sites mentioned above, with none of these sites being individually significant to the Company. | ||||||||||||
Remediation activities, generally involving soil and/or groundwater contamination, include pre-cleanup activities such as fact finding and investigation, risk assessment, feasibility study, design and action planning, performance (where actions may range from monitoring, to removal of contaminants, to installation of longer-term remediation systems), and operation and maintenance of a remediation system. The extent of expected remediation activities and costs varies by site. A number of factors affect the cost of environmental remediation, including the number of parties involved at a particular site, the determination of the extent of contamination, the length of time the remediation may require, the complexity of environmental regulations, and the continuing advancement of remediation technology. Taking these factors into account, Eaton has estimated the costs of remediation, which will be paid over a period of years. The Company accrues an amount on an undiscounted basis, consistent with the estimates of these costs when it is probable that a liability has been incurred. Actual results may differ from these estimates. At December 31, 2013 and 2012, the Company had an accrual totaling $149 and $158, respectively, for these costs. | ||||||||||||
Based upon Eaton's analysis and subject to the difficulty in estimating these future costs, the Company expects that any sum it may be required to pay in connection with environmental matters is not reasonably possible to exceed the recorded liability by an amount that would have a material effect on its financial position, results of operations or cash flows. | ||||||||||||
Warranty Accruals | ||||||||||||
A summary of the current and long-term warranty accruals follows: | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Balance at January 1 | $ | 185 | $ | 158 | $ | 153 | ||||||
Provision | 107 | 85 | 98 | |||||||||
Settled | (99 | ) | (84 | ) | (94 | ) | ||||||
Other | (4 | ) | 26 | 1 | ||||||||
Balance at December 31 | $ | 189 | $ | 185 | $ | 158 | ||||||
At December 31, 2012, amounts included in Other and related to the acquisition of Cooper total $24. For additional information about acquisitions of businesses, see Note 2. | ||||||||||||
Lease Commitments | ||||||||||||
Eaton leases certain real properties and equipment. A summary of minimum rental commitments at December 31, 2013 under noncancelable operating leases, which expire at various dates and in most cases contain renewal options, for each of the next five years and thereafter in the aggregate, follow: | ||||||||||||
2014 | $ | 185 | ||||||||||
2015 | 144 | |||||||||||
2016 | 100 | |||||||||||
2017 | 72 | |||||||||||
2018 | 57 | |||||||||||
Thereafter | 92 | |||||||||||
Total noncancelable lease commitments | $ | 650 | ||||||||||
A summary of rental expense follows: | ||||||||||||
2013 | $ | 241 | ||||||||||
2012 | 199 | |||||||||||
2011 | 194 | |||||||||||
Income_Taxes
Income Taxes | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | ' | |||||||||||||||||||||||
INCOME TAXES | ' | |||||||||||||||||||||||
INCOME TAXES | ||||||||||||||||||||||||
Eaton Corporation plc is domiciled in Ireland. Income before income taxes and income tax expense are summarized below based on the geographic location of the operation to which such earnings and income taxes are attributable. Certain Eaton operations which are located outside the United States are subject to both United States as well as the income tax regulations of the country in which the operations are located. As a result, income before tax by location and the components of income tax expense by taxing jurisdiction are not directly related. For purposes of this note, Puerto Rico is classified in Foreign - other since Puerto Rico is not part of the United States corporate tax system. | ||||||||||||||||||||||||
Income before income taxes | ||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||
Ireland | $ | 184 | $ | — | $ | — | ||||||||||||||||||
Foreign | 1,700 | 1,251 | 1,553 | |||||||||||||||||||||
Total income before income taxes | $ | 1,884 | $ | 1,251 | $ | 1,553 | ||||||||||||||||||
Income tax expense (benefit) | ||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||
Current | ||||||||||||||||||||||||
Ireland | $ | 17 | $ | — | $ | — | ||||||||||||||||||
United States | ||||||||||||||||||||||||
Federal | 89 | 1 | 85 | |||||||||||||||||||||
State and local | 7 | 5 | 2 | |||||||||||||||||||||
Foreign - other | 244 | 130 | 186 | |||||||||||||||||||||
Total current income tax expense | 357 | 136 | 273 | |||||||||||||||||||||
Deferred | ||||||||||||||||||||||||
Ireland | — | — | — | |||||||||||||||||||||
United States | ||||||||||||||||||||||||
Federal | (295 | ) | 39 | (2 | ) | |||||||||||||||||||
State and local | (23 | ) | 2 | 8 | ||||||||||||||||||||
Foreign - other | (28 | ) | (146 | ) | (78 | ) | ||||||||||||||||||
Total deferred income tax benefit | (346 | ) | (105 | ) | (72 | ) | ||||||||||||||||||
Total income tax expense | $ | 11 | $ | 31 | $ | 201 | ||||||||||||||||||
Reconciliations of income taxes from the Ireland national statutory rate of 25% in 2013, and the United States federal statutory rate of 35% in 2012 and 2011, to the consolidated effective income tax rate follow: | ||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||
Income taxes at the applicable statutory rate | 25 | % | 35 | % | 35 | % | ||||||||||||||||||
Ireland tax on trading income | (1.4 | )% | — | % | — | % | ||||||||||||||||||
United States operations | ||||||||||||||||||||||||
United States income (loss) | (2.8 | )% | — | % | — | % | ||||||||||||||||||
State and local income taxes | (0.5 | )% | 0.6 | % | 0.2 | % | ||||||||||||||||||
Deductible dividends | — | % | (0.7 | )% | (0.5 | )% | ||||||||||||||||||
Deductible interest | (0.3 | )% | (0.8 | )% | (0.5 | )% | ||||||||||||||||||
Credit for research activities | (2.0 | )% | — | % | (1.0 | )% | ||||||||||||||||||
Impact of U.S. Health Care Reform and Education Reconciliation Act | — | % | — | % | (0.9 | )% | ||||||||||||||||||
and pre-funding on taxation associated with Medicare Part D | ||||||||||||||||||||||||
Other - net | 2.1 | % | 2.7 | % | 0.5 | % | ||||||||||||||||||
Other foreign operations | ||||||||||||||||||||||||
United States foreign tax credit | (1.8 | )% | (12.4 | )% | (2.3 | )% | ||||||||||||||||||
Other foreign operations (earnings taxed at other than | (17.6 | )% | (14.9 | )% | (15.5 | )% | ||||||||||||||||||
the applicable statutory tax rate) | ||||||||||||||||||||||||
Other foreign operations - other items | 0.2 | % | — | % | — | % | ||||||||||||||||||
Worldwide operations | ||||||||||||||||||||||||
Adjustments to tax liabilities | (1.1 | )% | (5.7 | )% | (0.8 | )% | ||||||||||||||||||
Adjustments to valuation allowances | 0.8 | % | (1.3 | )% | (1.3 | )% | ||||||||||||||||||
Effective income tax expense rate | 0.6 | % | 2.5 | % | 12.9 | % | ||||||||||||||||||
During 2013, income tax expense of $11 was recognized (an effective tax rate of 0.6%) compared to $31 for 2012 (an effective tax rate of 2.5%) and $201 for 2011 (an effective tax rate of 12.9%). The lower effective tax rate for 2013, compared to 2012, was primarily attributable to the effects associated with the acquisition of Cooper, along with greater levels of income in lower tax jurisdictions, additional foreign tax credit utilization, and double credit for U.S. research and experimentation activities. On January 2, 2013, the President of the United States signed the American Taxpayer Relief Act of 2012 (the Act) into law. The Act extended certain tax benefits retroactively to January 1, 2012. The extension of the credit for research activities permitted the Company to recognize a total benefit of $39 related to the 2012 and 2013 tax years. | ||||||||||||||||||||||||
No provision has been made for income taxes on undistributed earnings of U.S. and other foreign subsidiaries of approximately $10.5 billion at December 31, 2013, since it is the Company's intention to indefinitely reinvest undistributed earnings of its foreign subsidiaries. It is not practicable to estimate the additional income taxes and applicable withholding taxes that would be payable on the remittance of such undistributed earnings. | ||||||||||||||||||||||||
The Company's largest growth areas that require capital are in developing markets. The cash that is permanently reinvested is typically used to expand operations either organically or through acquisitions in such developing markets as well as other mature markets where the Company targets increased market share. Beginning in 2013, the Company's public dividends are funded by the Ireland parent primarily from Non-U.S. operations. The Company's United States operations normally generate cash flow sufficient to satisfy United States operating requirements and service its debt. | ||||||||||||||||||||||||
Worldwide income tax payments follow: | ||||||||||||||||||||||||
2013 | $ | 272 | ||||||||||||||||||||||
2012 | 254 | |||||||||||||||||||||||
2011 | 191 | |||||||||||||||||||||||
Deferred Income Tax Assets and Liabilities | ||||||||||||||||||||||||
Components of current and long-term deferred income taxes follow: | ||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||
Current | Long-term | Current | Long-term | |||||||||||||||||||||
assets and | assets and | assets and | assets and | |||||||||||||||||||||
liabilities | liabilities | liabilities | liabilities | |||||||||||||||||||||
Accruals and other adjustments | ||||||||||||||||||||||||
Employee benefits | $ | 116 | $ | 657 | $ | 92 | $ | 857 | ||||||||||||||||
Depreciation and amortization | (2 | ) | (2,294 | ) | (3 | ) | (2,793 | ) | ||||||||||||||||
Other accruals and adjustments | 497 | 368 | 495 | 297 | ||||||||||||||||||||
Other items | — | — | — | 145 | ||||||||||||||||||||
United States federal income tax loss carryforwards | — | — | — | 6 | ||||||||||||||||||||
United States federal income tax credit carryforwards | — | 161 | — | 156 | ||||||||||||||||||||
United States state and local tax loss carryforwards and | — | 73 | — | 71 | ||||||||||||||||||||
tax credit carryforwards | ||||||||||||||||||||||||
Other foreign tax loss carryforwards | — | 1,708 | — | 1,591 | ||||||||||||||||||||
Other foreign income tax credit carryforwards | — | 63 | — | 67 | ||||||||||||||||||||
Valuation allowance for income tax loss and income tax | — | (1,738 | ) | (61 | ) | (1,521 | ) | |||||||||||||||||
credit carryforwards | ||||||||||||||||||||||||
Other valuation allowances | (34 | ) | (71 | ) | (7 | ) | (71 | ) | ||||||||||||||||
Total deferred income taxes | $ | 577 | $ | (1,073 | ) | $ | 516 | $ | (1,195 | ) | ||||||||||||||
At December 31, 2012, deferred tax liabilities of $49 were included within Other current liabilities. | ||||||||||||||||||||||||
At the end of 2013, United States federal income tax loss carryforwards and income tax credit carryforwards were available to reduce future United States federal income tax liabilities. These carryforwards and their expiration dates are summarized below: | ||||||||||||||||||||||||
2014 | 2019 | 2024 | 2029 | Not | ||||||||||||||||||||
through | through | through | through | subject to | Valuation | |||||||||||||||||||
2018 | 2023 | 2028 | 2033 | expiration | allowance | |||||||||||||||||||
United States federal income tax loss carryforwards | $ | 1 | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||
United States federal income tax credit carryforwards | 3 | 70 | — | 69 | 19 | (51 | ) | |||||||||||||||||
United States state and local tax loss carryforwards and tax credit carryforwards with a future tax benefit are also available at the end of 2013. These carryforwards and their expiration dates are summarized below: | ||||||||||||||||||||||||
2014 | 2019 | 2024 | 2029 | Not | ||||||||||||||||||||
through | through | through | through | subject to | Valuation | |||||||||||||||||||
2018 | 2023 | 2028 | 2033 | expiration | allowance | |||||||||||||||||||
United States state and local assets for income tax | $ | 4 | $ | 15 | $ | 13 | $ | 5 | $ | — | $ | (15 | ) | |||||||||||
loss carryforwards - net of federal tax effect | ||||||||||||||||||||||||
United States state and local income tax credit | 11 | 9 | 7 | 3 | 6 | (16 | ) | |||||||||||||||||
carryforwards - net of federal tax effect | ||||||||||||||||||||||||
At December 31, 2013, certain other foreign subsidiaries had tax loss carryforwards and income tax credit carryforwards that are available to offset future taxable income. These carryforwards and their expiration dates are summarized below: | ||||||||||||||||||||||||
2014 | 2019 | 2024 | 2029 | Not | ||||||||||||||||||||
through | through | through | through | subject to | Valuation | |||||||||||||||||||
2018 | 2023 | 2028 | 2033 | expiration | allowance | |||||||||||||||||||
Other foreign income tax loss carryforwards | $ | 136 | $ | 130 | $ | 48 | $ | 18 | $ | 7,654 | $ | — | ||||||||||||
Other foreign deferred income tax assets for income | 35 | 32 | 14 | 5 | 1,622 | (1,646 | ) | |||||||||||||||||
tax loss carryforwards | ||||||||||||||||||||||||
Other foreign income tax credit carryforwards | 39 | 13 | 2 | — | 9 | (10 | ) | |||||||||||||||||
Recoverability of Deferred Income Tax Assets | ||||||||||||||||||||||||
Eaton is subject to the income tax laws in the jurisdictions in which it operates. In order to determine its income tax provision for financial statement purposes, Eaton must make significant estimates and judgments about its business operations in these jurisdictions. These estimates and judgments are also used in determining the deferred income tax assets and liabilities that have been recognized for differences between the financial statement and income tax basis of assets and liabilities, and income tax loss carryforwards and income tax credit carryforwards. | ||||||||||||||||||||||||
Management evaluates the realizability of deferred income tax assets for each of the jurisdictions in which it operates. If the Company experiences cumulative pretax income in a particular jurisdiction in the three-year period including the current and prior two years, management normally concludes that the deferred income tax assets will more likely than not be realizable and no valuation allowance is recognized, unless known or planned operating developments would lead management to conclude otherwise. However, if the Company experiences cumulative pretax losses in a particular jurisdiction in the three-year period including the current and prior two years, management then considers a series of factors in the determination of whether the deferred income tax assets can be realized. These factors include historical operating results, known or planned operating developments, the period of time over which certain temporary differences will reverse, consideration of the utilization of certain deferred income tax liabilities, tax law carryback capability in the particular country, prudent and feasible tax planning strategies, and estimates of future earnings and taxable income using the same assumptions as the Company's goodwill and other impairment testing. After evaluation of these factors, if the deferred income tax assets are expected to be realized within the tax carryforward period allowed for that specific country, management would conclude that no valuation allowance would be required. To the extent that the deferred income tax assets exceed the amount that is expected to be realized within the tax carryforward period for a particular jurisdiction, management would establish a valuation allowance. | ||||||||||||||||||||||||
Applying the above methodology, valuation allowances have been established for certain deferred income tax assets to the extent they are not expected to be realized within the particular tax carryforward period. | ||||||||||||||||||||||||
Unrecognized Income Tax Benefits | ||||||||||||||||||||||||
A summary of gross unrecognized income tax benefits follows: | ||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||
Balance at January 1 | $ | 444 | $ | 236 | $ | 224 | ||||||||||||||||||
Increases and decreases as a result of positions taken during prior years | ||||||||||||||||||||||||
Transfers from valuation allowances | 13 | — | — | |||||||||||||||||||||
Other increases | 7 | 1 | 3 | |||||||||||||||||||||
Other decreases, including currency translation | (7 | ) | — | (14 | ) | |||||||||||||||||||
Balances related to acquired businesses | 2 | 177 | 2 | |||||||||||||||||||||
Increases as a result of positions taken during the current year | 35 | 36 | 31 | |||||||||||||||||||||
Decreases relating to settlements with tax authorities | (6 | ) | — | (2 | ) | |||||||||||||||||||
Decreases as a result of a lapse of the applicable statute of limitations | (9 | ) | (6 | ) | (8 | ) | ||||||||||||||||||
Balance at December 31 | $ | 479 | $ | 444 | $ | 236 | ||||||||||||||||||
Eaton's long-term policy has been to enter into tax planning strategies only if it is more likely than not that the benefit would be sustained upon audit. For example, the Company does not enter into any of the United States Internal Revenue Service (IRS) Listed Transactions as set forth in Treasury Regulation 1.6011-4. | ||||||||||||||||||||||||
If all unrecognized tax benefits were recognized, the net impact on the provision for income tax expense would be $371. | ||||||||||||||||||||||||
As of December 31, 2013 and 2012, Eaton had accrued approximately $114 and $99, respectively, for the payment of worldwide interest and penalties. Eaton recognizes interest and penalties related to unrecognized income tax benefits in the provision for income tax expense. The Company has accrued penalties in jurisdictions where they are automatically applied to any deficiency, regardless of the merit of the position. | ||||||||||||||||||||||||
The resolution of the majority of Eaton's unrecognized income tax benefits is dependent upon uncontrollable factors such as law changes; the prospect of retroactive regulations; new case law; the willingness of the income tax authority to settle the issue, including the timing thereof; and other factors. Therefore, for the majority of unrecognized income tax benefits, it is not reasonably possible to estimate the increase or decrease in the next 12 months. For each of the unrecognized income tax benefits where it is possible to estimate the increase or decrease in the balance within the next 12 months, the Company estimates tax settlements in the range of $35 to $43. | ||||||||||||||||||||||||
Eaton or its subsidiaries file income tax returns in Ireland and many countries around the world. The IRS has completed its examination of Eaton Corporation and Includible Subsidiaries United States income tax returns for 2005 and 2006 and has issued a Statutory Notice of Deficiency (Notice) as discussed below. The statute of limitations on these tax years remains open to the extent of the tax assessment until the matter is resolved. The IRS is currently examining the Eaton Corporation and Includible Subsidiaries United States income tax returns for 2007 through 2010. Tax years 2011 through 2013 are still subject to examination by the IRS. | ||||||||||||||||||||||||
With respect to the pre-acquisition years of Cooper Industries and Includible Subsidiaries, the IRS examination of the United States income tax return for 2010 was completed and settled during 2012 without significant effect on the consolidated financial statements. The statute of limitations remains open for tax year 2010 until September 15, 2014. During 2012, the IRS began its formal examination of the Cooper Industries and Includible Subsidiaries United States income tax return for 2011. The audit was completed and settled during 2013 without significant effect on the consolidated financial statements. The United States statute of limitations remains open for tax year 2011 until September 15, 2015. The final United States income tax return of Cooper Industries and Includible Subsidiaries for the period ended December 21, 2012 is currently under IRS examination. The United States statute of limitations on the final return will be open until September 15, 2016. On December 22, 2012, Cooper Industries and Includible Subsidiaries joined Eaton Corporation and Includible Subsidiaries consolidated United States income tax return for 2012. | ||||||||||||||||||||||||
Eaton is also under examination for the income tax filings in various states of the United States and in many other foreign jurisdictions. With only a few exceptions, Eaton Corporation and Includible Subsidiaries are no longer subject to income tax examinations from states and localities within the United States for years before 2009. Income tax returns of states and localities within the United States will be reopened to the extent of United States federal income tax adjustments, if any, going back to 2005 when those audit years are finalized. Some states and localities may not limit their assessment to the United States federal adjustments, and may require the opening of the entire tax year. In addition, with only a few exceptions, Cooper Industries and Includible Subsidiaries are no longer subject to United States state and local income tax examinations for years before 2009. With only a few exceptions, the other foreign subsidiaries of both Eaton and Cooper are no longer subject to examinations for years before 2008. | ||||||||||||||||||||||||
At the end of the fourth quarter of 2011, the IRS issued a Notice for Eaton Corporation and Includible Subsidiaries 2005 and 2006 tax years. The Notice proposes assessments of $75 in additional taxes plus $52 in penalties related primarily to transfer pricing adjustments for products manufactured in the Company's facilities in Puerto Rico and the Dominican Republic and sold to affiliated companies located in the U.S., net of agreed credits and deductions. The Company has set its transfer prices for products sold between these affiliates at the same prices that the Company sells such products to third parties. The Notice was issued despite the IRS having previously recognized the validity of the Company's transfer pricing methodology by entering into two successive Advance Pricing Agreements (APAs) that approved and, in fact, required the application of the Company's transfer pricing methodology for the ten year period of 2001 through 2010. For the years 2001 through 2004, the IRS had previously accepted the transfer pricing methodology related to these APAs after a comprehensive review conducted in two separate audit cycles. On December 16, 2011, immediately prior to the Notice being issued, the IRS sent a letter stating that it was retrospectively canceling the APAs, even though their respective APA terms had already expired. | ||||||||||||||||||||||||
The Company firmly believes that the proposed assessments are without merit. The Company also believes that it was in full compliance with the terms of the two APAs, and that the IRS's unilateral attempt to retroactively cancel these two APAs is also without merit, and represents a breach of the two agreements. On February 29, 2012, the Company filed a Petition with the U.S. Tax Court in which it asserted that the transfer pricing established in the two APA contracts meets the arms-length standard set by the U.S. income tax laws, and accordingly, that the two APA contracts should be enforced in accordance with their terms. On June 11, 2012, the Company filed a motion for partial summary judgment with the U.S. Tax Court, asking the U.S. Tax Court to find that the APAs are binding contracts and that the IRS has the burden of proof to substantiate cancellation of the APAs. On June 26, 2013, the U.S. Tax Court ruled that the IRS has the discretion to unilaterally cancel an APA and that the taxpayer bears the burden of proving that the IRS abused that discretion. While the Company disagrees with the Tax Court's ruling, the Company remains confident that it will be able to demonstrate that it was in full compliance with the APAs and that the IRS abused its discretion in canceling the APAs after their terms expired. In addition, the Company continues to believe the transfer pricing methodology contained in the APAs is correct and that the ultimate resolution of this matter will not have a material impact on the consolidated financial statements. | ||||||||||||||||||||||||
During 2013, the U.S. Tax Court approved the Company’s motion to depose the outside expert hired by the IRS, whose report was the sole basis underlying the Notice. As a result of statements made by the expert during the deposition, the Company determined that the IRS expert either failed to consider or improperly applied the principles of Internal Revenue Code Section 482, including four Treasury Regulations that impacted the expert’s analysis. As a result, the Company filed a motion for partial summary judgment asking the U.S. Tax Court to invalidate the Notice. This motion is currently pending before the U.S. Tax Court. In addition, the IRS filed a separate motion asking the U.S. Tax Court to divide the overall matter into two separate trials, one involving the APA issue and the other involving the transfer pricing issue. The Company is opposed to separating the trials. This motion is also pending before the U.S. Tax Court. | ||||||||||||||||||||||||
During 2010, Eaton Corporation received a significant tax assessment in Brazil for the tax years 2005 through 2008 that relates to the amortization of certain goodwill generated from the acquisition of third-party businesses and corporate reorganizations. In this jurisdiction, the Company had previously filed and received a favorable tax ruling on the key aspects of the transaction not specifically covered by the plain meaning of the local tax statutes. The ruling request fully disclosed all steps of the transaction. The tax assessment is under review at the second of three administrative appeals levels. The first administrative appeal level made a 50% reduction in assessed penalties. The Company disagrees with the assessment and intends to litigate the matter if it is not resolved at the administrative appeals levels. Multiple outside advisors have stated that Brazilian tax authorities are raising the issue for most clients with similar facts and that the matter is expected to require at least 10 years to resolve. During 2013, the Brazilian tax authorities began an audit of tax years 2009 through 2012. At this time, management believes that final resolution of the assessment will not have a material impact on the consolidated financial statements. |
Eaton_Shareholders_Equity
Eaton Shareholders' Equity | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||
Stockholders' Equity Note [Abstract] | ' | |||||||||||||||||||||||
Eaton Shareholders' Equity [Text Block] | ' | |||||||||||||||||||||||
EATON SHAREHOLDERS' EQUITY | ||||||||||||||||||||||||
There are 750 million Eaton ordinary shares authorized ($0.01 par value per share), 475.1 million and 470.7 million of which were issued and outstanding at December 31, 2013 and 2012, respectively. Eaton's Memorandum and Articles of Association authorized 40 thousand deferred ordinary shares (€1.00 par value per share) and 10 thousand preferred A shares ($1.00 par value per share), all of which were issued and outstanding at December 31, 2013 and 2012, and 10 million serial preferred shares ($0.01 par value per share), none of which were outstanding at December 31, 2013 and 2012. At December 31, 2013, there were 19,538 holders of record of Eaton ordinary shares. Additionally, 28,128 current and former employees were shareholders through participation in the Eaton Savings Plan, Eaton Personal Investment Plan, Eaton Puerto Rico Retirement Savings Plan, and the Cooper Retirement Savings and Stock Ownership Plan. | ||||||||||||||||||||||||
Eaton Corporation had a common share repurchase program (2007 Program) that authorized the repurchase of 10 million common shares. In 2011, 8.3 million Eaton Corporation common shares were repurchased under the 2007 Program in the open market at a total cost of $343. On September 28, 2011, Eaton Corporation's Board of Directors replaced the 2007 Program with a common share repurchase program (2011 Program) which authorized the purchase of up to 20 million common shares, not to exceed an aggregate purchase price of $1.25 billion. No common shares were purchased under the 2011 Program. On April 24, 2013, the Company's shareholders authorized the Board of Directors to adopt an ordinary share repurchase program (2013 Program) for up to 40 million ordinary shares at prices between 70% and 120% of the closing price of Eaton's ordinary shares on the day of purchase. On October 22, 2013, Eaton's Board of Directors adopted the 2013 Program. The ordinary shares are expected to be repurchased over time, depending on market conditions, the market price of ordinary shares, capital levels, and other considerations. In 2013, no ordinary shares were repurchased under the 2013 Program. In 2012, no common shares were repurchased under the 2011 Program. | ||||||||||||||||||||||||
Eaton has deferral plans that permit certain employees and directors to defer a portion of their compensation. A trust contains $24 and $12 of ordinary shares and marketable securities, as valued at December 31, 2013 and 2012, respectively, to fund a portion of these liabilities. The marketable securities were included in Other assets and the ordinary shares were included in Shareholders' equity at historical cost. | ||||||||||||||||||||||||
On February 26, 2014, Eaton's Board of Directors declared a quarterly dividend of $0.49 per ordinary share, payable on March 21, 2014, to shareholders of record at the close of business on March 10, 2014. | ||||||||||||||||||||||||
Comprehensive Income (Loss) | ||||||||||||||||||||||||
Comprehensive income (loss) consists primarily of net income, currency translation and related hedging instruments, changes in unrecognized costs of pension and other postretirement benefits, and changes in the effective portion of open derivative contracts designated as cash flow hedges. The following table summarizes the pre-tax and after-tax amounts recognized in Comprehensive income (loss): | ||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||
Pre-tax | After-tax | Pre-tax | After-tax | Pre-tax | After-tax | |||||||||||||||||||
Currency translation and related hedging instruments | $ | (30 | ) | $ | (28 | ) | $ | 144 | $ | 135 | $ | (252 | ) | $ | (241 | ) | ||||||||
Pensions and other postretirement benefits | ||||||||||||||||||||||||
Prior service cost arising during the year | (6 | ) | (4 | ) | (1 | ) | (1 | ) | (5 | ) | (4 | ) | ||||||||||||
Net gain (loss) arising during the year | 456 | 277 | (386 | ) | (262 | ) | (648 | ) | (417 | ) | ||||||||||||||
Currency translation | (5 | ) | (4 | ) | (15 | ) | (12 | ) | 5 | 4 | ||||||||||||||
Other | 2 | 16 | (2 | ) | 15 | — | (15 | ) | ||||||||||||||||
Amortization of actuarial loss and prior service cost | 229 | 144 | 170 | 108 | 122 | 79 | ||||||||||||||||||
reclassified to earnings | ||||||||||||||||||||||||
676 | 429 | (234 | ) | (152 | ) | (526 | ) | (353 | ) | |||||||||||||||
Cash flow hedges | ||||||||||||||||||||||||
Gain (loss) on derivatives designated as cash flow hedges | 6 | 3 | 10 | 10 | (28 | ) | (21 | ) | ||||||||||||||||
Changes in cash flow hedges reclassified to earnings | — | — | 7 | 7 | — | (1 | ) | |||||||||||||||||
Cash flow hedges, net of reclassification adjustments | 6 | 3 | 17 | 17 | (28 | ) | (22 | ) | ||||||||||||||||
Other comprehensive income (loss) attributable to Eaton | $ | 652 | $ | 404 | $ | (73 | ) | $ | — | $ | (806 | ) | $ | (616 | ) | |||||||||
ordinary shareholders | ||||||||||||||||||||||||
The changes in Accumulated other comprehensive (loss) income follow: | ||||||||||||||||||||||||
Currency translation and related hedging instruments | Pensions and other postretirement benefits | Cash flow | Total | |||||||||||||||||||||
hedges | ||||||||||||||||||||||||
Balance at December 31, 2012 | $ | (367 | ) | $ | (1,599 | ) | $ | 2 | $ | (1,964 | ) | |||||||||||||
Other comprehensive (loss) income | (28 | ) | 285 | 3 | 260 | |||||||||||||||||||
before reclassifications | ||||||||||||||||||||||||
Amounts reclassified from Accumulated other | — | 144 | — | 144 | ||||||||||||||||||||
comprehensive (loss) income | ||||||||||||||||||||||||
Net current-period other comprehensive | (28 | ) | 429 | 3 | 404 | |||||||||||||||||||
(loss) income | ||||||||||||||||||||||||
Balance at December 31, 2013 | $ | (395 | ) | $ | (1,170 | ) | $ | 5 | $ | (1,560 | ) | |||||||||||||
The reclassifications out of Accumulated other comprehensive (loss) income follow: | ||||||||||||||||||||||||
31-Dec-13 | Consolidated Statements of | |||||||||||||||||||||||
Income classification | ||||||||||||||||||||||||
Amortization of defined benefit pension items | ||||||||||||||||||||||||
Actuarial loss | $ | (229 | ) | 1 | ||||||||||||||||||||
(229 | ) | |||||||||||||||||||||||
Tax benefit | 85 | |||||||||||||||||||||||
Total, net of tax | (144 | ) | ||||||||||||||||||||||
Gains and losses on cash flow hedges | ||||||||||||||||||||||||
Floating-to-fixed interest rate swaps | (1 | ) | Interest expense - net | |||||||||||||||||||||
Currency exchange contracts | 2 | Cost of products sold | ||||||||||||||||||||||
Commodity contracts | (1 | ) | Cost of products sold | |||||||||||||||||||||
— | ||||||||||||||||||||||||
Tax expense | — | |||||||||||||||||||||||
Total, net of tax | — | |||||||||||||||||||||||
Total reclassifications for the period | $ | (144 | ) | |||||||||||||||||||||
1 These components of Accumulated other comprehensive loss are included in the computation of net periodic pension cost. See Note 6 for additional information about defined benefit pension items. | ||||||||||||||||||||||||
Net Income per Ordinary Share | ||||||||||||||||||||||||
A summary of the calculation of net income per ordinary share attributable to ordinary shareholders follows: | ||||||||||||||||||||||||
(Shares in millions) | 2013 | 2012 | 2011 | |||||||||||||||||||||
Net income attributable to Eaton ordinary shareholders | $ | 1,861 | $ | 1,217 | $ | 1,350 | ||||||||||||||||||
Weighted-average number of ordinary shares outstanding - diluted | 476.7 | 350.9 | 342.8 | |||||||||||||||||||||
Less dilutive effect of equity-based compensation | 3.2 | 3.1 | 4.5 | |||||||||||||||||||||
Weighted-average number of ordinary shares outstanding - basic | 473.5 | 347.8 | 338.3 | |||||||||||||||||||||
Net income per ordinary share | ||||||||||||||||||||||||
Diluted | $ | 3.9 | $ | 3.46 | $ | 3.93 | ||||||||||||||||||
Basic | 3.93 | 3.54 | 3.98 | |||||||||||||||||||||
In 2013, 2012, and 2011, 0.2 million, 2.2 million, and 1.5 million stock options, respectively, were excluded from the calculation of diluted net income per ordinary share because the exercise price of the options exceeded the average market price of the ordinary shares during the period and their effect, accordingly, would have been antidilutive. |
EquityBased_Compensation
Equity-Based Compensation | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Share-based Compensation [Abstract] | ' | ||||||||||||
Equity-Based Compensation | ' | ||||||||||||
EQUITY-BASED COMPENSATION | |||||||||||||
Restricted Stock Units and Awards | |||||||||||||
Restricted stock units (RSUs) and restricted stock awards (RSAs) have been issued to certain employees and directors at fair market value at the date of grant. The RSUs entitle the holder to receive one ordinary share for each RSU upon vesting, generally over three or four years. RSAs are issued and outstanding at the time of grant, but remain subject to forfeiture until vested, generally over three or four years. A summary of the RSU and RSA activity for 2013 follows: | |||||||||||||
(Restricted stock units and awards in millions) | Number of restricted | Weighted-average fair | |||||||||||
stock units and awards | value per unit and award | ||||||||||||
Non-vested at January 1 | 3.4 | $ | 42.47 | ||||||||||
Granted | 1.5 | 57.75 | |||||||||||
Vested | (1.3 | ) | 37.71 | ||||||||||
Forfeited | (0.2 | ) | 50.7 | ||||||||||
Non-vested at December 31 | 3.4 | $ | 51.37 | ||||||||||
Information related to RSUs and RSAs follows: | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Pretax expense for RSUs and RSAs | $ | 69 | $ | 46 | $ | 50 | |||||||
After-tax expense for RSUs and RSAs | 45 | 30 | 32 | ||||||||||
As of December 31, 2013, total compensation expense not yet recognized related to non-vested RSUs and RSAs was $111, and the weighted-average period in which the expense is expected to be recognized is 2.2 years. Excess tax benefit for equity-based compensation totaled $10 for 2013. | |||||||||||||
Stock Options | |||||||||||||
Under various plans, stock options have been granted to certain employees and directors to purchase ordinary shares at prices equal to fair market value on the date of grant. Substantially all of these options vest ratably during the three-year period following the date of grant and expire 10 years from the date of grant. Compensation expense is recognized for stock options based on the fair value of the options at the date of grant and amortized on a straight-line basis over the period the employee or director is required to provide service. | |||||||||||||
The Company uses a Black-Scholes option pricing model to estimate the fair value of stock options. The principal assumptions utilized in valuing stock options include the expected stock price volatility (based on the most recent historical period equal to the expected life of the option); the expected option life (an estimate based on historical experience); the expected dividend yield; and the risk-free interest rate (an estimate based on the yield of United States Treasury zero coupon with a maturity equal to the expected life of the option). A summary of the assumptions used in determining the fair value of stock options follows: | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Expected volatility | 36 | % | 35 | % | 33 | % | |||||||
Expected option life in years | 5.5 | 5.5 | 5.5 | ||||||||||
Expected dividend yield | 2 | % | 2 | % | 2 | % | |||||||
Risk-free interest rate | 1.5 to 0.8% | 1.0 to 0.9% | 2.2% to 1.4% | ||||||||||
Weighted-average fair value of stock options granted | $ | 17.49 | $ | 14.08 | $ | 14.56 | |||||||
A summary of stock option activity follows: | |||||||||||||
(Options in millions) | Weighted-average | Options | Weighted-average | Aggregate | |||||||||
price per option | remaining | intrinsic | |||||||||||
contractual life | value | ||||||||||||
in years | |||||||||||||
Outstanding at January 1, 2013 | $ | 39.45 | 10.8 | ||||||||||
Granted | 63.15 | 0.8 | |||||||||||
Exercised | 35.76 | (3.6 | ) | ||||||||||
Forfeited and canceled | 50.76 | (0.1 | ) | ||||||||||
Outstanding at December 31, 2013 | $ | 43.43 | 7.9 | 4.4 | $ | 259 | |||||||
Exercisable at December 31, 2013 | $ | 40.05 | 6.4 | 3.4 | $ | 232 | |||||||
Reserved for future grants at December 31, 2013 | 17.7 | ||||||||||||
The aggregate intrinsic value in the table above represents the total excess of the $76.12 closing price of Eaton ordinary shares on the last trading day of 2013 over the exercise price of the stock option, multiplied by the related number of options outstanding and exercisable. The aggregate intrinsic value is not recognized for financial accounting purposes and the value changes based on the daily changes in the fair market value of the Company's ordinary shares. | |||||||||||||
Information related to stock options follows: | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Pretax expense for stock options | $ | 11 | $ | 7 | $ | 5 | |||||||
After-tax expense for stock options | 7 | 5 | 4 | ||||||||||
Proceeds from stock options exercised | 121 | 95 | 71 | ||||||||||
Income tax benefit related to stock options exercised | |||||||||||||
Tax benefit classified in operating activities in the Consolidated | 3 | 5 | 13 | ||||||||||
Statements of Cash Flows | |||||||||||||
Excess tax benefit classified in financing activities in the | 22 | 13 | 33 | ||||||||||
Consolidated Statements of Cash Flows | |||||||||||||
Intrinsic value of stock options exercised | 102 | 60 | 62 | ||||||||||
Total fair value of stock options vesting | $ | 11 | $ | 7 | $ | 5 | |||||||
Stock options exercised, in millions of options | 3.565 | 3.099 | 2.541 | ||||||||||
As of December 31, 2013, total compensation expense not yet recognized related to non-vested stock options was $14, and the weighted-average period in which the expense is expected to be recognized is 2 years. |
Fair_Value_Measurements
Fair Value Measurements | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Fair Value Measurements [Abstract] | ' | |||||||||||||||
FAIR VALUE MEASUREMENTS | ' | |||||||||||||||
FAIR VALUE MEASUREMENTS | ||||||||||||||||
Fair value is measured based on an exit price, representing the amount that would be received to sell an asset or paid to satisfy a liability in an orderly transaction between market participants. Fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions, a fair value hierarchy is established, which categorizes the inputs used in measuring fair value as follows: (Level 1) observable inputs such as quoted prices in active markets; (Level 2) inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and (Level 3) unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions. | ||||||||||||||||
A summary of financial instruments recognized at fair value, and the fair value measurements used, follows: | ||||||||||||||||
Total | Quoted prices | Other | Unobservable | |||||||||||||
in active | observable | inputs | ||||||||||||||
markets for | inputs | (Level 3) | ||||||||||||||
identical assets | (Level 2) | |||||||||||||||
(Level 1) | ||||||||||||||||
2013 | ||||||||||||||||
Cash | $ | 915 | $ | 915 | $ | — | $ | — | ||||||||
Short-term investments | 794 | 794 | — | — | ||||||||||||
Net derivative contracts | (35 | ) | — | (35 | ) | — | ||||||||||
Long-term debt converted to floating interest rates by | (39 | ) | — | (39 | ) | — | ||||||||||
interest rate swaps - net | ||||||||||||||||
2012 | ||||||||||||||||
Cash | $ | 577 | $ | 577 | $ | — | $ | — | ||||||||
Short-term investments | 527 | 527 | — | — | ||||||||||||
Net derivative contracts | 83 | — | 83 | — | ||||||||||||
Long-term debt converted to floating interest rates by | 87 | — | 87 | — | ||||||||||||
interest rate swaps - net | ||||||||||||||||
Eaton values its financial instruments using an industry standard market approach, in which prices and other relevant information is generated by market transactions involving identical or comparable assets or liabilities. No financial instruments were recognized using unobservable inputs. | ||||||||||||||||
Other Fair Value Measurements | ||||||||||||||||
Long-term debt and the current portion of long-term debt had a carrying value of $9,536 and fair value of $9,665 at December 31, 2013 compared to $10,079 and $10,796, respectively, at December 31, 2012. The fair value of Eaton's debt instruments was estimated using prevailing market interest rates on debt with similar creditworthiness, terms and maturities and is considered a Level 2 fair value measurement. | ||||||||||||||||
Short-Term Investments | ||||||||||||||||
Eaton invests excess cash generated from operations in short-term marketable investments. For those investments classified as “available-for-sale”, Eaton marks these investments to fair value with the offset recognized in Accumulated other comprehensive loss. A summary of the carrying value of short-term investments follows: | ||||||||||||||||
2013 | 2012 | |||||||||||||||
Time deposits, certificate of deposits and demand deposits with banks | $ | 279 | $ | 293 | ||||||||||||
Money market investments | 512 | 228 | ||||||||||||||
Other | 3 | 6 | ||||||||||||||
Total short-term investments | $ | 794 | $ | 527 | ||||||||||||
Derivative_Financial_Instrumen
Derivative Financial Instruments and Hedging Activities | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | |||||||||||||||||||||||
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES | ' | |||||||||||||||||||||||
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES | ||||||||||||||||||||||||
In the normal course of business, Eaton is exposed to certain risks related to fluctuations in interest rates, currency exchange rates and commodity prices. The Company uses various derivative and non-derivative financial instruments, primarily interest rate swaps, currency forward exchange contracts, currency swaps and, to a lesser extent, commodity contracts, to manage risks from these market fluctuations. The instruments used by Eaton are straightforward, non-leveraged instruments. The counterparties to these instruments are financial institutions with strong credit ratings. Eaton maintains control over the size of positions entered into with any one counterparty and regularly monitors the credit rating of these institutions. Such instruments are not purchased and sold for trading purposes. | ||||||||||||||||||||||||
Derivative financial instruments are accounted for at fair value and recognized as assets or liabilities in the Consolidated Balance Sheets. Accounting for the gain or loss resulting from the change in the fair value of the derivative financial instrument depends on whether it has been designated, and is effective, as part of a hedging relationship and, if so, as to the nature of the hedging activity. Eaton formally documents all relationships between derivative financial instruments accounted for as designated hedges and the hedged item, as well as its risk-management objective and strategy for undertaking the hedge transaction. This process includes linking derivative financial instruments to a recognized asset or liability, specific firm commitment, forecasted transaction, or net investment in a foreign operation. These financial instruments can be designated as: | ||||||||||||||||||||||||
• | Hedges of the change in the fair value of a recognized fixed-rate asset or liability, or the firm commitment to acquire such an asset or liability (a fair value hedge); for these hedges, the gain or loss from the derivative financial instrument, as well as the offsetting loss or gain on the hedged item attributable to the hedged risk, are recognized in income during the period of change in fair value. | |||||||||||||||||||||||
• | Hedges of the variable cash flows of a recognized variable-rate asset or liability, or the forecasted acquisition of such an asset or liability (a cash flow hedge); for these hedges, the effective portion of the gain or loss from the derivative financial instrument is recognized in Accumulated other comprehensive loss and reclassified to income in the same period when the gain or loss on the hedged item is included in income. | |||||||||||||||||||||||
• | Hedges of the currency exposure related to a net investment in a foreign operation (a net investment hedge); for these hedges, the effective portion of the gain or loss from the derivative financial instrument is recognized in Accumulated other comprehensive loss and reclassified to income in the same period when the gain or loss related to the net investment in the foreign operation is included in income. | |||||||||||||||||||||||
The gain or loss from a derivative financial instrument designated as a hedge that is effective is classified in the same line of the Consolidated Statements of Income as the offsetting loss or gain on the hedged item. The change in fair value of a derivative financial instrument that is not effective as a hedge is immediately recognized in income. | ||||||||||||||||||||||||
For derivatives that are not designated as a hedge, any gain or loss is immediately recognized in income. The majority of derivatives used in this manner relate to risks resulting from assets or liabilities denominated in a foreign currency and certain commodity contracts that arise in the normal course of business. Gains and losses associated with commodity hedge contracts are classified in Cost of products sold. | ||||||||||||||||||||||||
Eaton uses certain of its debt denominated in foreign currency to hedge portions of its net investments in foreign operations against foreign currency exposure (net investment hedges). Foreign currency denominated debt designated as non-derivative net investment hedging instruments was $95 and $116 at December 31, 2013 and 2012, respectively. See Note 5 for additional information about debt. | ||||||||||||||||||||||||
Interest Rate Risk | ||||||||||||||||||||||||
Eaton has entered into fixed-to-floating interest rate swaps and floating-to-fixed interest rate swaps to manage interest rate risk of certain long-term debt. These interest rate swaps are accounted for as fair value hedges and cash flow hedges, respectively, of certain long-term debt. The maturity of the swap corresponds with the maturity of the debt instrument as noted in the table of long-term debt in Note 5. | ||||||||||||||||||||||||
A summary of interest rate swaps outstanding at December 31, 2013, follows: | ||||||||||||||||||||||||
Fixed-to-Floating Interest Rate Swaps | ||||||||||||||||||||||||
Notional amount | Fixed interest | Floating interest | Basis for contracted floating interest rate paid | |||||||||||||||||||||
rate received | rate paid | |||||||||||||||||||||||
$ | 100 | 5.95% | 2.98% | 6 month LIBOR + 2.60% | ||||||||||||||||||||
150 | 5.30% | 4.43% | 1 month LIBOR + 4.26% | |||||||||||||||||||||
450 | 1.50% | 0.62% | 1 month LIBOR + 0.45% | |||||||||||||||||||||
415 | 5.60% | 3.54% | 6 month LIBOR + 3.18% | |||||||||||||||||||||
300 | 6.95% | 5.32% | 3 month LIBOR + 5.07% | |||||||||||||||||||||
25 | 8.88% | 4.26% | 6 month LIBOR + 3.84% | |||||||||||||||||||||
150 | 3.88% | 2.29% | 1 month LIBOR + 2.12% | |||||||||||||||||||||
150 | 3.47% | 2.01% | 1 month LIBOR + 1.84% | |||||||||||||||||||||
1,100 | 2.75% | 0.71% | 1 month LIBOR + 0.54% | |||||||||||||||||||||
150 | 3.68% | 1.22% | 1 month LIBOR + 1.06% | |||||||||||||||||||||
25 | 7.63% | 2.84% | 6 month LIBOR + 2.48% | |||||||||||||||||||||
50 | 7.65% | 2.92% | 6 month LIBOR + 2.57% | |||||||||||||||||||||
25 | 5.45% | 0.64% | 6 month LIBOR + 0.28% | |||||||||||||||||||||
Floating-to-Fixed Interest Rate Swaps | ||||||||||||||||||||||||
Notional amount | Floating interest | Fixed interest | Basis for contracted floating interest rate received | |||||||||||||||||||||
rate received | rate paid | |||||||||||||||||||||||
$ | 300 | 0.24% | 0.76% | 3 month LIBOR | ||||||||||||||||||||
Derivative Financial Statement Impacts | ||||||||||||||||||||||||
The fair value of derivative financial instruments recognized in the Consolidated Balance Sheets follows: | ||||||||||||||||||||||||
Notional | Other | Other | Other | Other | Type of | Term | ||||||||||||||||||
amount | current | long-term | current | long-term | hedge | |||||||||||||||||||
assets | assets | liabilities | liabilities | |||||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||
Derivatives designated as hedges | ||||||||||||||||||||||||
Fixed-to-floating interest rate swaps | $ | 3,090 | $ | 1 | $ | 36 | $ | — | $ | 76 | Fair value | 3 months | ||||||||||||
to 20 years | ||||||||||||||||||||||||
Floating-to-fixed interest rate swaps | 300 | — | — | 1 | — | Cash flow | 6 months | |||||||||||||||||
Currency exchange contracts | 393 | 12 | — | 3 | — | Cash flow | 12 to 36 months | |||||||||||||||||
Commodity contracts | 1 | — | — | — | — | Cash flow | 12 months | |||||||||||||||||
Total | $ | 13 | $ | 36 | $ | 4 | $ | 76 | ||||||||||||||||
Derivatives not designated as hedges | ||||||||||||||||||||||||
Currency exchange contracts | $ | 4,277 | $ | 22 | $ | 26 | 12 months | |||||||||||||||||
Total | $ | 22 | $ | 26 | ||||||||||||||||||||
December 31, 2012 | ||||||||||||||||||||||||
Derivatives designated as hedges | ||||||||||||||||||||||||
Fixed-to-floating interest rate swaps | $ | 1,290 | $ | 2 | $ | 85 | $ | — | $ | — | Fair value | 6 months | ||||||||||||
to 21 years | ||||||||||||||||||||||||
Floating-to-fixed interest rate swaps | 300 | — | — | — | 2 | Cash flow | 1 year | |||||||||||||||||
Currency exchange contracts | 451 | 9 | — | 4 | — | Cash flow | 12 to 36 months | |||||||||||||||||
Commodity contracts | 17 | — | — | — | — | Cash flow | 12 months | |||||||||||||||||
Total | $ | 11 | $ | 85 | $ | 4 | $ | 2 | ||||||||||||||||
Derivatives not designated as hedges | ||||||||||||||||||||||||
Currency exchange contracts | $ | 4,997 | $ | 23 | $ | 31 | 12 months | |||||||||||||||||
Commodity contracts | 19 | 1 | — | 12 months | ||||||||||||||||||||
Total | $ | 24 | $ | 31 | ||||||||||||||||||||
The currency exchange contracts shown in the table above as derivatives not designated as hedges are primarily contracts entered into to manage currency volatility or exposure on intercompany sales and loans. While Eaton does not elect hedge accounting treatment for these derivatives, Eaton targets managing 100% of the intercompany balance sheet exposure to minimize the effect of currency volatility related to the movement of goods and services in the normal course of its operations. This activity represents the great majority of these currency exchange contracts. | ||||||||||||||||||||||||
Amounts recognized in Accumulated other comprehensive loss follow: | ||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||
Gain (loss) | Gain (loss) | Gain (loss) | Gain (loss) | |||||||||||||||||||||
recognized in | reclassified | recognized in | reclassified | |||||||||||||||||||||
Accumulated | from | Accumulated | from | |||||||||||||||||||||
other | Accumulated | other | Accumulated | |||||||||||||||||||||
comprehensive | other | comprehensive | other | |||||||||||||||||||||
loss | comprehensive | loss | comprehensive | |||||||||||||||||||||
loss | loss | |||||||||||||||||||||||
Derivatives designated as cash flow hedges | ||||||||||||||||||||||||
Floating-to-fixed interest rate swaps | $ | — | $ | (1 | ) | $ | (3 | ) | $ | (1 | ) | |||||||||||||
Currency exchange contracts | 6 | 2 | 12 | 1 | ||||||||||||||||||||
Commodity contracts | — | (1 | ) | 1 | (7 | ) | ||||||||||||||||||
Total | $ | 6 | $ | — | $ | 10 | $ | (7 | ) | |||||||||||||||
Gains and losses reclassified from Accumulated other comprehensive loss to the Consolidated Statements of Income were recognized in Cost of products sold and Interest expense - net. | ||||||||||||||||||||||||
Amounts recognized in net income follow: | ||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||
Derivatives designated as fair value hedges | ||||||||||||||||||||||||
Fixed-to-floating interest rate swaps | $ | (126 | ) | $ | 21 | |||||||||||||||||||
Related long-term debt converted to floating interest | 126 | (21 | ) | |||||||||||||||||||||
rates by interest rate swaps | ||||||||||||||||||||||||
$ | — | $ | — | |||||||||||||||||||||
Gains and losses described above were recognized in Interest expense - net. |
Accounts_Receivable_and_Invent
Accounts Receivable and Inventory | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Accounts Receivable and Inventory [Abstract] | ' | |||||||
Accounts Receivable and Inventory | ' | |||||||
ACCOUNTS RECEIVABLE AND INVENTORY | ||||||||
Accounts Receivable | ||||||||
Eaton performs ongoing credit evaluation of its customers and maintains sufficient allowances for potential credit losses. The Company evaluates the collectability of its accounts receivable based on the length of time the receivable is past due and any anticipated future write-off based on historic experience. Accounts receivable balances are written off against an allowance for doubtful accounts after a final determination of uncollectability has been made. Accounts receivable are net of an allowance for doubtful accounts of $79 and $85 at December 31, 2013 and 2012, respectively. | ||||||||
Inventory | ||||||||
Inventory is carried at lower of cost or market. Inventory in the United States is generally accounted for using the last-in, first-out (LIFO) method. Remaining United States and non-United States inventory is accounted for using the first-in, first-out (FIFO) method. Cost components include raw materials, purchased components, direct labor, indirect labor, utilities, depreciation, inbound freight charges, purchasing and receiving costs, inspection costs, warehousing costs, and costs of the distribution network. | ||||||||
The components of inventory follow: | ||||||||
2013 | 2012 | |||||||
Raw materials | $ | 955 | $ | 915 | ||||
Work-in-process | 428 | 423 | ||||||
Finished goods | 1,115 | 1,131 | ||||||
Inventory at FIFO | 2,498 | 2,469 | ||||||
Excess of FIFO over LIFO cost | (116 | ) | (133 | ) | ||||
Total inventory | $ | 2,382 | $ | 2,336 | ||||
Inventory at FIFO accounted for using the LIFO method was 45% and 43% at the end of 2013 and 2012, respectively. |
Business_Segment_and_Geographi
Business Segment and Geographic Region Information | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||
Business Segment and Geographic Region Information | ' | |||||||||||
BUSINESS SEGMENT AND GEOGRAPHIC REGION INFORMATION | ||||||||||||
Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated on a regular basis by the chief operating decision maker, or decision making group, in deciding how to allocate resources to an individual segment and in assessing performance. Eaton’s segments are as follows: | ||||||||||||
Electrical Products and Electrical Systems and Services | ||||||||||||
The Electrical Products segment consists of electrical components, industrial components, residential products, single phase power quality, emergency lighting, fire detection, wiring devices, structural support systems, circuit protection, and lighting products. The Electrical Systems and Services segment consists of power distribution and assemblies, three phase power quality, hazardous duty electrical equipment, intrinsically safe explosion-proof instrumentation, utility power distribution, power reliability equipment, and services. The principal markets for these segments are industrial, institutional, governmental, utility, commercial, residential and information technology. These products are used wherever there is a demand for electrical power in commercial buildings, data centers, residences, apartment and office buildings, hospitals, factories, and utilities. The segments share several common global customers, but a large number of customers are located regionally. Sales are made directly to original equipment manufacturers, utilities, and certain other end users, as well as through distributors, resellers, and manufacturers' representatives. | ||||||||||||
Hydraulics | ||||||||||||
The Hydraulics segment is a global leader in hydraulics components, systems and services for industrial and mobile equipment. Eaton offers a wide range of power products including pumps, motors and hydraulic power units; a broad range of controls and sensing products including valves, cylinders and electronic controls; a full range of fluid conveyance products including industrial and hydraulic hose, fittings, and assemblies, thermoplastic hose and tubing, couplings, connectors, and assembly equipment; filtration systems solutions; heavy-duty drum and disc brakes; and golf grips. The principal markets for the Hydraulics segment include oil and gas, renewable energy, marine, agriculture, construction, mining, forestry, utility, material handling, truck and bus, machine tools, molding, primary metals, and power generation. Key manufacturing customers in these markets and other customers are located globally. Products are sold and serviced through a variety of channels. | ||||||||||||
Aerospace | ||||||||||||
The Aerospace segment is a leading global supplier of aerospace fuel, hydraulics, and pneumatic systems for commercial and military use. Products include hydraulic power generation systems for aerospace applications including pumps, motors, hydraulic power units, hose and fittings, electro-hydraulic pumps and power and load management systems; controls and sensing products including valves, cylinders, electronic controls, electromechanical actuators, sensors, displays and panels, aircraft flap and slat systems and nose wheel steering systems; fluid conveyance products, including hose, thermoplastic tubing, fittings, adapters, couplings, sealing and ducting; and fuel systems including fuel pumps, sensors, valves, adapters and regulators. The principal markets for the Aerospace segment are manufacturers of commercial and military aircraft and related after-market customers. These manufacturers and other customers operate globally. Products are sold and serviced through a variety of channels. | ||||||||||||
Vehicle | ||||||||||||
The Vehicle segment is a leader in the design, manufacture, marketing, and supply of drivetrain and powertrain systems and critical components that reduce emissions and improve fuel economy, stability, performance, and safety of cars, light trucks and commercial vehicles. Products include transmissions, clutches, hybrid power systems, superchargers, engine valves and valve actuation systems, cylinder heads, locking and limited slip differentials, transmission and engine controls, fuel vapor components, compressor control clutches for mobile refrigeration, fluid connectors and hoses for air conditioning and power steering, underhood plastic components, fluid conveyance products including, hose, thermoplastic tubing, fittings, adapters, couplings and sealing products for the global vehicle industry. The principal markets for the Vehicle segment are original equipment manufacturers and aftermarket customers of heavy-, medium-, and light-duty trucks, SUVs, CUVs, passenger cars and agricultural equipment. | ||||||||||||
Other Information | ||||||||||||
No single customer represented greater than 10% of net sales in 2013, 2012 or 2011, respectively. | ||||||||||||
The accounting policies of the business segments are generally the same as the policies described in Note 1, except that inventory and related cost of products sold of the segments are accounted for using the FIFO method and operating profit only reflects the service cost component related to pensions and other postretirement benefits. Intersegment sales and transfers are accounted for at the same prices as if the sales and transfers were made to third parties. These intersegment sales are eliminated in consolidation. | ||||||||||||
For purposes of business segment performance measurement, the Company does not allocate items that are of a non-operating nature or are of a corporate or functional governance nature. Corporate expenses consist of transaction costs associated with the acquisition of certain businesses and corporate office expenses including compensation, benefits, occupancy, depreciation, and other administrative costs. Identifiable assets of the business segments exclude goodwill, other intangible assets, and general corporate assets, which principally consist of cash, short-term investments, deferred income taxes, certain accounts receivable, certain property, plant and equipment, and certain other assets. See Note 2 for additional information about business acquisitions. | ||||||||||||
Business Segment Information | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Net sales | ||||||||||||
Electrical Products | $ | 7,026 | $ | 3,846 | $ | 3,619 | ||||||
Electrical Systems and Services | 6,430 | 3,872 | 3,557 | |||||||||
Hydraulics | 2,981 | 2,960 | 2,835 | |||||||||
Aerospace | 1,774 | 1,719 | 1,648 | |||||||||
Vehicle | 3,835 | 3,914 | 4,390 | |||||||||
Total net sales | $ | 22,046 | $ | 16,311 | $ | 16,049 | ||||||
Segment operating profit | ||||||||||||
Electrical Products | $ | 1,090 | $ | 640 | $ | 531 | ||||||
Electrical Systems and Services | 889 | 424 | 352 | |||||||||
Hydraulics | 355 | 369 | 438 | |||||||||
Aerospace | 252 | 213 | 244 | |||||||||
Vehicle | 592 | 570 | 695 | |||||||||
Total segment operating profit | 3,178 | 2,216 | 2,260 | |||||||||
Corporate | ||||||||||||
Amortization of intangible assets | (437 | ) | (195 | ) | (190 | ) | ||||||
Interest expense - net | (271 | ) | (208 | ) | (118 | ) | ||||||
Pension and other postretirement benefits expense | (183 | ) | (162 | ) | (142 | ) | ||||||
Inventory step-up adjustment | (34 | ) | (42 | ) | (5 | ) | ||||||
Other corporate expense - net | (369 | ) | (358 | ) | (252 | ) | ||||||
Income before income taxes | 1,884 | 1,251 | 1,553 | |||||||||
Income tax expense | 11 | 31 | 201 | |||||||||
Net income | 1,873 | 1,220 | 1,352 | |||||||||
Less net income for noncontrolling interests | (12 | ) | (3 | ) | (2 | ) | ||||||
Net income attributable to Eaton ordinary shareholders | $ | 1,861 | $ | 1,217 | $ | 1,350 | ||||||
Business segment operating profit was reduced by acquisition integration charges as follows: | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Electrical Products | $ | 44 | $ | 4 | $ | 1 | ||||||
Electrical Systems and Services | 37 | 13 | 9 | |||||||||
Hydraulics | 36 | 16 | 4 | |||||||||
Total | $ | 117 | $ | 33 | $ | 14 | ||||||
Corporate acquisition integration charges totaled $37 and $11 in 2013 and 2012, respectively. Corporate acquisition integration charges related primarily to the acquisition of Cooper and are included above in Other corporate expense - net. | ||||||||||||
Acquisition-related transaction costs, such as investment banking, legal and other professional fees, and costs associated with change in control agreements, are included above in Interest expense - net and Other corporate expense - net. These charges totaled $9 and $178 in 2013 and 2012, respectively. There were no significant Corporate acquisition-related transition costs in 2011. See Note 3 for additional information about acquisition integration charges and transaction costs. | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Identifiable assets | ||||||||||||
Electrical Products | $ | 3,204 | $ | 3,338 | $ | 1,653 | ||||||
Electrical Systems and Services | 2,683 | 2,408 | 1,242 | |||||||||
Hydraulics | 1,362 | 1,426 | 1,265 | |||||||||
Aerospace | 852 | 806 | 754 | |||||||||
Vehicle | 1,716 | 1,698 | 1,783 | |||||||||
Total identifiable assets | 9,817 | 9,676 | 6,697 | |||||||||
Goodwill | 14,495 | 14,443 | 5,537 | |||||||||
Other intangible assets | 7,186 | 7,580 | 2,192 | |||||||||
Corporate | 3,993 | 4,111 | 3,447 | |||||||||
Total assets | $ | 35,491 | $ | 35,810 | $ | 17,873 | ||||||
Capital expenditures for property, plant and equipment | ||||||||||||
Electrical Products | $ | 152 | $ | 108 | $ | 76 | ||||||
Electrical Systems and Services | 113 | 47 | 41 | |||||||||
Hydraulics | 80 | 60 | 70 | |||||||||
Aerospace | 29 | 27 | 21 | |||||||||
Vehicle | 161 | 148 | 172 | |||||||||
Total | 535 | 390 | 380 | |||||||||
Corporate | 79 | 203 | 188 | |||||||||
Total expenditures for property, plant and equipment | $ | 614 | $ | 593 | $ | 568 | ||||||
Depreciation of property, plant and equipment | ||||||||||||
Electrical Products | $ | 151 | $ | 78 | $ | 74 | ||||||
Electrical Systems and Services | 86 | 42 | 37 | |||||||||
Hydraulics | 65 | 61 | 54 | |||||||||
Aerospace | 27 | 26 | 26 | |||||||||
Vehicle | 133 | 136 | 147 | |||||||||
Total | 462 | 343 | 338 | |||||||||
Corporate | 54 | 38 | 29 | |||||||||
Total depreciation of property, plant and equipment | $ | 516 | $ | 381 | $ | 367 | ||||||
Geographic Region Information | ||||||||||||
Net sales are measured based on the geographic destination of sales. Long-lived assets consist of property, plant and equipment - net. | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Net sales | ||||||||||||
United States | $ | 11,092 | $ | 7,789 | $ | 7,165 | ||||||
Canada | 1,154 | 918 | 815 | |||||||||
Latin America | 2,113 | 1,588 | 1,952 | |||||||||
Europe | 5,112 | 3,997 | 4,092 | |||||||||
Asia Pacific | 2,575 | 2,019 | 2,025 | |||||||||
Total | $ | 22,046 | $ | 16,311 | $ | 16,049 | ||||||
Long-lived assets | ||||||||||||
United States | $ | 1,966 | $ | 1,914 | $ | 1,227 | ||||||
Canada | 28 | 33 | 27 | |||||||||
Latin America | 331 | 346 | 247 | |||||||||
Europe | 856 | 845 | 649 | |||||||||
Asia Pacific | 652 | 648 | 452 | |||||||||
Total | $ | 3,833 | $ | 3,786 | $ | 2,602 | ||||||
Condensed_Consolidating_Financ
Condensed Consolidating Financial Statements | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | ' | |||||||||||||||||||||||
Condensed Consolidating Financial Statements [Text Block] | ' | |||||||||||||||||||||||
CONDENSED CONSOLIDATING FINANCIAL STATEMENTS | ||||||||||||||||||||||||
On November 20, 2012, Eaton Corporation issued senior notes (the "Senior Notes") totaling $4,900 to finance part of the cash portion of the acquisition of Cooper. See Note 5 for additional information related to these Senior Notes. Eaton and certain other of Eaton's principal 100% owned subsidiaries (the "Guarantors") fully and unconditionally guaranteed (subject, in the case of the Guarantors, other than Eaton, to customary release provisions as described below), on a joint and several basis, the Senior Notes. The following condensed consolidating financial statements are included so that separate financial statements of Eaton, Eaton Corporation and each of the Guarantors are not required to be filed with the Securities and Exchange Commission. The consolidating adjustments primarily relate to eliminations of investments in subsidiaries and intercompany balances and transactions. The condensed consolidating financial statements present investments in subsidiaries using the equity method of accounting. | ||||||||||||||||||||||||
The guarantee of a Guarantor that is not a parent of the issuer will be automatically and unconditionally released and discharged in the event of any sale of the Guarantor or of all or substantially all of its assets, or in connection with the release or termination of the Guarantor as a guarantor under all other U.S. debt securities or U.S. syndicated credit facilities, subject to limitations set forth in the indenture. The guarantee of a Guarantor that is a direct or indirect parent of the issuer will only be automatically and unconditionally released and discharged in connection with the release or termination of such Guarantor as a guarantor under all other debt securities or syndicated credit facilities (in both cases, U.S. or otherwise), subject to limitations set forth in the indenture. | ||||||||||||||||||||||||
Eaton was incorporated under the laws of Ireland on May 10, 2012, and became the successor registrant to Eaton Corporation on November 30, 2012 in connection with the acquisition of Cooper. Therefore, for presentation purposes of entities under common control, Eaton is presented as the parent company in the 2012 condensed consolidating financial statements. For periods prior to 2012, Eaton Corporation is presented as the parent company. | ||||||||||||||||||||||||
CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME | ||||||||||||||||||||||||
YEAR ENDED DECEMBER 31, 2013 | ||||||||||||||||||||||||
Eaton | Eaton | Guarantors | Other | Consolidating | Total | |||||||||||||||||||
Corporation | Corporation | subsidiaries | adjustments | |||||||||||||||||||||
plc | ||||||||||||||||||||||||
Net sales | $ | — | $ | 6,695 | $ | 6,421 | $ | 13,579 | $ | (4,649 | ) | $ | 22,046 | |||||||||||
Cost of products sold | — | 5,227 | 4,784 | 10,010 | (4,652 | ) | 15,369 | |||||||||||||||||
Selling and administrative expense | 32 | 1,400 | 749 | 1,705 | — | 3,886 | ||||||||||||||||||
Research and development expense | — | 255 | 200 | 189 | — | 644 | ||||||||||||||||||
Interest expense (income) - net | — | 271 | 28 | (22 | ) | (6 | ) | 271 | ||||||||||||||||
Other expense (income) - net | — | 8 | 4 | (20 | ) | — | (8 | ) | ||||||||||||||||
Equity in (earnings) loss of | (2,147 | ) | (1,156 | ) | (1,214 | ) | (813 | ) | 5,330 | — | ||||||||||||||
subsidiaries, net of tax | ||||||||||||||||||||||||
Intercompany expense | 254 | (155 | ) | (479 | ) | 380 | — | — | ||||||||||||||||
(income) - net | ||||||||||||||||||||||||
Income before income taxes | 1,861 | 845 | 2,349 | 2,150 | (5,321 | ) | 1,884 | |||||||||||||||||
Income tax (benefit) expense | — | (108 | ) | (90 | ) | 207 | 2 | 11 | ||||||||||||||||
Net income | 1,861 | 953 | 2,439 | 1,943 | (5,323 | ) | 1,873 | |||||||||||||||||
Less net income for | — | — | — | (9 | ) | (3 | ) | (12 | ) | |||||||||||||||
noncontrolling interests | ||||||||||||||||||||||||
Net income attributable to | $ | 1,861 | $ | 953 | $ | 2,439 | $ | 1,934 | $ | (5,326 | ) | $ | 1,861 | |||||||||||
Eaton ordinary shareholders | ||||||||||||||||||||||||
Other comprehensive income | $ | 404 | $ | 300 | $ | 481 | $ | 363 | $ | (1,144 | ) | $ | 404 | |||||||||||
Total comprehensive income | $ | 2,265 | $ | 1,253 | $ | 2,920 | $ | 2,297 | $ | (6,470 | ) | $ | 2,265 | |||||||||||
attributable to Eaton ordinary | ||||||||||||||||||||||||
shareholders | ||||||||||||||||||||||||
CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME | ||||||||||||||||||||||||
YEAR ENDED DECEMBER 31, 2012 | ||||||||||||||||||||||||
Eaton Corporation plc | Eaton | Guarantors | Other | Consolidating | Total | |||||||||||||||||||
Corporation | subsidiaries | adjustments | ||||||||||||||||||||||
Net sales | $ | — | $ | 6,680 | $ | 2,849 | $ | 10,346 | $ | (3,564 | ) | $ | 16,311 | |||||||||||
Cost of products sold | — | 5,115 | 2,193 | 7,708 | (3,568 | ) | 11,448 | |||||||||||||||||
Selling and administrative expense | — | 1,307 | 335 | 1,252 | — | 2,894 | ||||||||||||||||||
Research and development expense | — | 230 | 108 | 101 | — | 439 | ||||||||||||||||||
Interest expense (income) - net | — | 229 | 8 | (29 | ) | — | 208 | |||||||||||||||||
Other expense - net | — | 10 | 48 | 13 | — | 71 | ||||||||||||||||||
Equity in (earnings) loss of | (1,219 | ) | (732 | ) | (1,337 | ) | (611 | ) | 3,899 | — | ||||||||||||||
subsidiaries, net of tax | ||||||||||||||||||||||||
Intercompany expense (income) - net | 2 | (237 | ) | 42 | 193 | — | — | |||||||||||||||||
Income before income taxes | 1,217 | 758 | 1,452 | 1,719 | (3,895 | ) | 1,251 | |||||||||||||||||
Income tax expense | — | 24 | — | 6 | 1 | 31 | ||||||||||||||||||
Net income | 1,217 | 734 | 1,452 | 1,713 | (3,896 | ) | 1,220 | |||||||||||||||||
Less net income for | — | — | — | (3 | ) | — | (3 | ) | ||||||||||||||||
noncontrolling interests | ||||||||||||||||||||||||
Net income attributable to | $ | 1,217 | $ | 734 | $ | 1,452 | $ | 1,710 | $ | (3,896 | ) | $ | 1,217 | |||||||||||
Eaton ordinary shareholders | ||||||||||||||||||||||||
Other comprehensive income (loss) | $ | — | $ | 290 | $ | (1,976 | ) | $ | (1,621 | ) | $ | 3,307 | $ | — | ||||||||||
Total comprehensive income | $ | 1,217 | $ | 1,024 | $ | (524 | ) | $ | 89 | $ | (589 | ) | $ | 1,217 | ||||||||||
(loss) attributable to | ||||||||||||||||||||||||
Eaton ordinary shareholders | ||||||||||||||||||||||||
CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME | ||||||||||||||||||||||||
YEAR ENDED DECEMBER 31, 2011 | ||||||||||||||||||||||||
Eaton | Guarantors | Other | Consolidating | Total | ||||||||||||||||||||
Corporation | subsidiaries | adjustments | ||||||||||||||||||||||
Net sales | $ | 6,294 | $ | 2,642 | $ | 10,520 | $ | (3,407 | ) | $ | 16,049 | |||||||||||||
Cost of products sold | 4,865 | 1,975 | 7,822 | (3,401 | ) | 11,261 | ||||||||||||||||||
Selling and administrative expense | 1,201 | 295 | 1,242 | — | 2,738 | |||||||||||||||||||
Research and development expense | 207 | 112 | 98 | — | 417 | |||||||||||||||||||
Interest expense (income) - net | 144 | 8 | (34 | ) | — | 118 | ||||||||||||||||||
Other income - net | (18 | ) | (2 | ) | (18 | ) | — | (38 | ) | |||||||||||||||
Equity in (earnings) loss of subsidiaries, net of tax | (1,271 | ) | (61 | ) | — | 1,332 | — | |||||||||||||||||
Intercompany (income) expense - net | (224 | ) | (13 | ) | 237 | — | — | |||||||||||||||||
Income before income taxes | 1,390 | 328 | 1,173 | (1,338 | ) | 1,553 | ||||||||||||||||||
Income tax expense | 40 | 89 | 74 | (2 | ) | 201 | ||||||||||||||||||
Net income | 1,350 | 239 | 1,099 | (1,336 | ) | 1,352 | ||||||||||||||||||
Less net income for noncontrolling interests | — | — | (1 | ) | (1 | ) | (2 | ) | ||||||||||||||||
Net income attributable to | $ | 1,350 | $ | 239 | $ | 1,098 | $ | (1,337 | ) | $ | 1,350 | |||||||||||||
Eaton ordinary shareholders | ||||||||||||||||||||||||
Other comprehensive loss | $ | (616 | ) | $ | (64 | ) | $ | (302 | ) | $ | 366 | $ | (616 | ) | ||||||||||
Total comprehensive income attributable | $ | 734 | $ | 175 | $ | 796 | $ | (971 | ) | $ | 734 | |||||||||||||
to Eaton ordinary shareholders | ||||||||||||||||||||||||
CONDENSED CONSOLIDATING BALANCE SHEETS | ||||||||||||||||||||||||
31-Dec-13 | ||||||||||||||||||||||||
Eaton | Eaton | Guarantors | Other | Consolidating | Total | |||||||||||||||||||
Corporation | Corporation | subsidiaries | adjustments | |||||||||||||||||||||
plc | ||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||
Current assets | ||||||||||||||||||||||||
Cash | $ | 3 | $ | 51 | $ | 10 | $ | 851 | $ | — | $ | 915 | ||||||||||||
Short-term investments | — | — | 134 | 660 | — | 794 | ||||||||||||||||||
Accounts receivable - net | — | 473 | 922 | 2,253 | — | 3,648 | ||||||||||||||||||
Intercompany accounts receivable | 5 | 471 | 3,368 | 4,470 | (8,314 | ) | — | |||||||||||||||||
Inventory | — | 344 | 609 | 1,466 | (37 | ) | 2,382 | |||||||||||||||||
Prepaid expenses and other | — | 458 | 175 | 350 | 9 | 992 | ||||||||||||||||||
current assets | ||||||||||||||||||||||||
Total current assets | 8 | 1,797 | 5,218 | 10,050 | (8,342 | ) | 8,731 | |||||||||||||||||
Property, plant and equipment - net | — | 982 | 761 | 2,090 | — | 3,833 | ||||||||||||||||||
Other noncurrent assets | ||||||||||||||||||||||||
Goodwill | — | 1,382 | 6,350 | 6,763 | — | 14,495 | ||||||||||||||||||
Other intangible assets | — | 211 | 3,996 | 2,979 | — | 7,186 | ||||||||||||||||||
Deferred income taxes | — | 839 | 3 | 145 | (747 | ) | 240 | |||||||||||||||||
Investment in subsidiaries | 24,940 | 8,853 | 40,776 | 8,473 | (83,042 | ) | — | |||||||||||||||||
Intercompany loans receivable | — | 8,019 | 2,518 | 18,776 | (29,313 | ) | — | |||||||||||||||||
Other assets | — | 450 | 186 | 370 | — | 1,006 | ||||||||||||||||||
Total assets | $ | 24,948 | $ | 22,533 | $ | 59,808 | $ | 49,646 | $ | (121,444 | ) | $ | 35,491 | |||||||||||
Liabilities and shareholders’ | ||||||||||||||||||||||||
equity | ||||||||||||||||||||||||
Current liabilities | ||||||||||||||||||||||||
Short-term debt | $ | — | $ | — | $ | — | $ | 13 | $ | — | $ | 13 | ||||||||||||
Current portion of long-term debt | — | 552 | — | 15 | — | 567 | ||||||||||||||||||
Accounts payable | — | 440 | 380 | 1,140 | — | 1,960 | ||||||||||||||||||
Intercompany accounts payable | 4 | 3,751 | 3,288 | 1,271 | (8,314 | ) | — | |||||||||||||||||
Accrued compensation | — | 140 | 37 | 284 | — | 461 | ||||||||||||||||||
Other current liabilities | 5 | 547 | 400 | 965 | (4 | ) | 1,913 | |||||||||||||||||
Total current liabilities | 9 | 5,430 | 4,105 | 3,688 | (8,318 | ) | 4,914 | |||||||||||||||||
Noncurrent liabilities | ||||||||||||||||||||||||
Long-term debt | — | 7,693 | 1,266 | 16 | (6 | ) | 8,969 | |||||||||||||||||
Pension liabilities | — | 546 | 131 | 788 | — | 1,465 | ||||||||||||||||||
Other postretirement benefits | — | 402 | 171 | 95 | — | 668 | ||||||||||||||||||
liabilities | ||||||||||||||||||||||||
Deferred income taxes | — | — | 1,303 | 757 | (747 | ) | 1,313 | |||||||||||||||||
Intercompany loans payable | 8,148 | 2,113 | 18,207 | 845 | (29,313 | ) | — | |||||||||||||||||
Other noncurrent liabilities | — | 652 | 162 | 485 | — | 1,299 | ||||||||||||||||||
Total noncurrent liabilities | 8,148 | 11,406 | 21,240 | 2,986 | (30,066 | ) | 13,714 | |||||||||||||||||
Shareholders’ equity | ||||||||||||||||||||||||
Eaton shareholders' equity | 16,791 | 5,697 | 34,463 | 42,906 | (83,066 | ) | 16,791 | |||||||||||||||||
Noncontrolling interests | — | — | — | 66 | 6 | 72 | ||||||||||||||||||
Total equity | 16,791 | 5,697 | 34,463 | 42,972 | (83,060 | ) | 16,863 | |||||||||||||||||
Total liabilities and equity | $ | 24,948 | $ | 22,533 | $ | 59,808 | $ | 49,646 | $ | (121,444 | ) | $ | 35,491 | |||||||||||
CONDENSED CONSOLIDATING BALANCE SHEETS | ||||||||||||||||||||||||
31-Dec-12 | ||||||||||||||||||||||||
Eaton | Eaton | Guarantors | Other | Consolidating | Total | |||||||||||||||||||
Corporation | Corporation | subsidiaries | adjustments | |||||||||||||||||||||
plc | ||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||
Current assets | ||||||||||||||||||||||||
Cash | $ | 7 | $ | 54 | $ | 14 | $ | 502 | $ | — | $ | 577 | ||||||||||||
Short-term investments | — | 25 | 38 | 464 | — | 527 | ||||||||||||||||||
Accounts receivable - net | — | 654 | 393 | 2,427 | — | 3,474 | ||||||||||||||||||
Intercompany accounts receivable | 38 | 335 | 4,683 | 3,887 | (8,943 | ) | — | |||||||||||||||||
Inventory | — | 341 | 602 | 1,432 | (39 | ) | 2,336 | |||||||||||||||||
Prepaid expenses and other | — | 391 | 245 | 341 | 9 | 986 | ||||||||||||||||||
current assets | ||||||||||||||||||||||||
Total current assets | 45 | 1,800 | 5,975 | 9,053 | (8,973 | ) | 7,900 | |||||||||||||||||
Property, plant and equipment - net | — | 934 | 777 | 2,075 | — | 3,786 | ||||||||||||||||||
Other noncurrent assets | ||||||||||||||||||||||||
Goodwill | — | 1,382 | 6,350 | 6,711 | — | 14,443 | ||||||||||||||||||
Other intangible assets | — | 231 | 4,094 | 3,255 | — | 7,580 | ||||||||||||||||||
Deferred income taxes | — | 941 | — | 195 | (783 | ) | 353 | |||||||||||||||||
Investment in subsidiaries | 20,662 | 7,678 | 21,912 | 6,931 | (57,183 | ) | — | |||||||||||||||||
Intercompany loans receivable | — | 7,650 | 13,262 | 14,125 | (35,037 | ) | — | |||||||||||||||||
Other assets | — | 459 | 124 | 1,165 | — | 1,748 | ||||||||||||||||||
Total assets | $ | 20,707 | $ | 21,075 | $ | 52,494 | $ | 43,510 | $ | (101,976 | ) | $ | 35,810 | |||||||||||
Liabilities and shareholders’ | ||||||||||||||||||||||||
equity | ||||||||||||||||||||||||
Current liabilities | ||||||||||||||||||||||||
Short-term debt | $ | — | $ | 753 | $ | — | $ | 4 | $ | — | $ | 757 | ||||||||||||
Current portion of long-term debt | — | 303 | 8 | 3 | — | 314 | ||||||||||||||||||
Accounts payable | — | 424 | 344 | 1,111 | — | 1,879 | ||||||||||||||||||
Intercompany accounts payable | 2 | 2,794 | 3,099 | 3,048 | (8,943 | ) | — | |||||||||||||||||
Accrued compensation | — | 129 | 74 | 259 | — | 462 | ||||||||||||||||||
Other current liabilities | — | 523 | 411 | 1,173 | (4 | ) | 2,103 | |||||||||||||||||
Total current liabilities | 2 | 4,926 | 3,936 | 5,598 | (8,947 | ) | 5,515 | |||||||||||||||||
Noncurrent liabilities | ||||||||||||||||||||||||
Long-term debt | — | 8,398 | 1,331 | 36 | — | 9,765 | ||||||||||||||||||
Pension liabilities | — | 895 | 232 | 876 | — | 2,003 | ||||||||||||||||||
Other postretirement benefits | — | 454 | 189 | 99 | — | 742 | ||||||||||||||||||
liabilities | ||||||||||||||||||||||||
Deferred income taxes | — | — | 1,397 | 934 | (783 | ) | 1,548 | |||||||||||||||||
Intercompany loans payable | 5,592 | 1,401 | 14,857 | 13,187 | (35,037 | ) | — | |||||||||||||||||
Other noncurrent liabilities | — | 440 | 157 | 462 | — | 1,059 | ||||||||||||||||||
Total noncurrent liabilities | 5,592 | 11,588 | 18,163 | 15,594 | (35,820 | ) | 15,117 | |||||||||||||||||
Shareholders’ equity | ||||||||||||||||||||||||
Eaton shareholders' equity | 15,113 | 4,561 | 30,395 | 22,263 | (57,219 | ) | 15,113 | |||||||||||||||||
Noncontrolling interests | — | — | — | 55 | 10 | 65 | ||||||||||||||||||
Total equity | 15,113 | 4,561 | 30,395 | 22,318 | (57,209 | ) | 15,178 | |||||||||||||||||
Total liabilities and equity | $ | 20,707 | $ | 21,075 | $ | 52,494 | $ | 43,510 | $ | (101,976 | ) | $ | 35,810 | |||||||||||
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS | ||||||||||||||||||||||||
31-Dec-13 | ||||||||||||||||||||||||
Eaton | Eaton | Guarantors | Other | Consolidating | Total | |||||||||||||||||||
Corporation | Corporation | subsidiaries | adjustments | |||||||||||||||||||||
plc | ||||||||||||||||||||||||
Net cash provided by | $ | 104 | $ | 739 | $ | 428 | $ | 1,067 | $ | (53 | ) | $ | 2,285 | |||||||||||
operating activities | ||||||||||||||||||||||||
Investing activities | ||||||||||||||||||||||||
Capital expenditures for property, | — | (171 | ) | (119 | ) | (324 | ) | — | (614 | ) | ||||||||||||||
plant and equipment | ||||||||||||||||||||||||
Cash paid for acquisitions of | — | — | — | (9 | ) | — | (9 | ) | ||||||||||||||||
businesses, net of cash acquired | ||||||||||||||||||||||||
Sales (purchases) of short-term | — | 25 | (95 | ) | (218 | ) | — | (288 | ) | |||||||||||||||
investments - net | ||||||||||||||||||||||||
Loans to affiliates | — | (535 | ) | (545 | ) | (6,215 | ) | 7,295 | — | |||||||||||||||
Repayments of loans from affiliates | — | 36 | 626 | 5,795 | (6,457 | ) | — | |||||||||||||||||
Proceeds from the sales | — | — | — | 777 | — | 777 | ||||||||||||||||||
of businesses | ||||||||||||||||||||||||
Other - net | — | (41 | ) | (12 | ) | (15 | ) | — | (68 | ) | ||||||||||||||
Net cash (used in) provided by | — | (686 | ) | (145 | ) | (209 | ) | 838 | (202 | ) | ||||||||||||||
investing activities | ||||||||||||||||||||||||
Financing activities | ||||||||||||||||||||||||
Proceeds from borrowings | — | — | — | 9 | — | 9 | ||||||||||||||||||
Payments on borrowings | — | (1,048 | ) | (43 | ) | (5 | ) | — | (1,096 | ) | ||||||||||||||
Proceeds from borrowings from | — | 2,395 | 4,260 | 640 | (7,295 | ) | — | |||||||||||||||||
affiliates | ||||||||||||||||||||||||
Payments on borrowings from | — | (2,921 | ) | (2,874 | ) | (662 | ) | 6,457 | — | |||||||||||||||
affiliates | ||||||||||||||||||||||||
Other intercompany financing | 688 | 1,365 | (1,630 | ) | (423 | ) | — | — | ||||||||||||||||
activities | ||||||||||||||||||||||||
Cash dividends paid | (796 | ) | — | — | — | — | (796 | ) | ||||||||||||||||
Cash dividends paid to affiliates | — | — | — | (53 | ) | 53 | — | |||||||||||||||||
Exercise of employee stock | — | 121 | — | — | — | 121 | ||||||||||||||||||
options | ||||||||||||||||||||||||
Excess tax benefit from | — | 32 | — | — | — | 32 | ||||||||||||||||||
equity-based compensation | ||||||||||||||||||||||||
Other - net | — | — | — | (6 | ) | — | (6 | ) | ||||||||||||||||
Net cash used in | (108 | ) | (56 | ) | (287 | ) | (500 | ) | (785 | ) | (1,736 | ) | ||||||||||||
financing activities | ||||||||||||||||||||||||
Effect of currency on cash | — | — | — | (9 | ) | — | (9 | ) | ||||||||||||||||
Total (decrease) increase in cash | (4 | ) | (3 | ) | (4 | ) | 349 | — | 338 | |||||||||||||||
Cash at the beginning of the period | 7 | 54 | 14 | 502 | — | 577 | ||||||||||||||||||
Cash at the end of the period | $ | 3 | $ | 51 | $ | 10 | $ | 851 | $ | — | $ | 915 | ||||||||||||
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS | ||||||||||||||||||||||||
31-Dec-12 | ||||||||||||||||||||||||
Eaton | Eaton | Guarantors | Other | Consolidating | Total | |||||||||||||||||||
Corporation | Corporation | subsidiaries | adjustments | |||||||||||||||||||||
plc | ||||||||||||||||||||||||
Net cash (used in) provided by | $ | (35 | ) | $ | 1,012 | $ | 217 | $ | 487 | $ | (17 | ) | $ | 1,664 | ||||||||||
operating activities | ||||||||||||||||||||||||
Investing activities | ||||||||||||||||||||||||
Capital expenditures for property, | — | (291 | ) | (73 | ) | (229 | ) | — | (593 | ) | ||||||||||||||
plant and equipment | ||||||||||||||||||||||||
Cash paid for acquisitions of | (6,542 | ) | — | 11 | (405 | ) | — | (6,936 | ) | |||||||||||||||
businesses, net of cash acquired | ||||||||||||||||||||||||
Sales of short-term investments - net | — | 175 | 210 | 218 | — | 603 | ||||||||||||||||||
Loans to affiliates | — | (6,693 | ) | — | (8,054 | ) | 14,747 | — | ||||||||||||||||
Repayments of loans from affiliates | — | 268 | — | 8,175 | (8,443 | ) | — | |||||||||||||||||
Proceeds from the sales | — | 2 | — | 1 | — | 3 | ||||||||||||||||||
of businesses | ||||||||||||||||||||||||
Other - net | — | (28 | ) | 2 | (23 | ) | — | (49 | ) | |||||||||||||||
Net cash (used in) provided by | (6,542 | ) | (6,567 | ) | 150 | (317 | ) | 6,304 | (6,972 | ) | ||||||||||||||
investing activities | ||||||||||||||||||||||||
Financing activities | ||||||||||||||||||||||||
Proceeds from borrowings | — | 7,156 | — | — | — | 7,156 | ||||||||||||||||||
Payments on borrowings | — | (1,306 | ) | (16 | ) | (2 | ) | — | (1,324 | ) | ||||||||||||||
Payments of financing costs | — | (117 | ) | — | — | — | (117 | ) | ||||||||||||||||
Proceeds from borrowings from | 5 | 8,054 | 6,425 | 263 | (14,747 | ) | — | |||||||||||||||||
affiliates | ||||||||||||||||||||||||
Payments on borrowings from | (5 | ) | (8,175 | ) | — | (263 | ) | 8,443 | — | |||||||||||||||
affiliates | ||||||||||||||||||||||||
Other intercompany financing | 273 | (340 | ) | 67 | — | — | ||||||||||||||||||
activities | ||||||||||||||||||||||||
Cash dividends paid | — | (512 | ) | — | — | — | (512 | ) | ||||||||||||||||
Cash dividends paid to affiliates | — | — | — | (17 | ) | 17 | — | |||||||||||||||||
Exercise of employee stock options | — | 95 | — | — | — | 95 | ||||||||||||||||||
Issuance (repurchase) of shares | 6,584 | — | (6,425 | ) | — | — | 159 | |||||||||||||||||
Excess tax benefit from equity-based | — | 21 | — | — | — | 21 | ||||||||||||||||||
compensation | ||||||||||||||||||||||||
Other - net | — | — | — | 2 | — | 2 | ||||||||||||||||||
Net cash provided by (used in) | 6,584 | 5,489 | (356 | ) | 50 | (6,287 | ) | 5,480 | ||||||||||||||||
financing activities | ||||||||||||||||||||||||
Effect of currency on cash | — | — | — | 20 | — | 20 | ||||||||||||||||||
Total increase (decrease) in cash | 7 | (66 | ) | 11 | 240 | — | 192 | |||||||||||||||||
Cash at the beginning of the period | — | 120 | 3 | 262 | — | 385 | ||||||||||||||||||
Cash at the end of the period | $ | 7 | $ | 54 | $ | 14 | $ | 502 | $ | — | $ | 577 | ||||||||||||
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS | ||||||||||||||||||||||||
31-Dec-11 | ||||||||||||||||||||||||
Eaton | Guarantors | Other | Consolidating | Total | ||||||||||||||||||||
Corporation | subsidiaries | adjustments | ||||||||||||||||||||||
Net cash provided by operating activities | $ | 613 | $ | 171 | $ | 1,017 | $ | (553 | ) | $ | 1,248 | |||||||||||||
Investing activities | ||||||||||||||||||||||||
Capital expenditures for property, | (249 | ) | (39 | ) | (280 | ) | — | (568 | ) | |||||||||||||||
plant and equipment | ||||||||||||||||||||||||
Cash paid for acquisitions of | (24 | ) | (2 | ) | (299 | ) | — | (325 | ) | |||||||||||||||
businesses, net of cash acquired | ||||||||||||||||||||||||
Sales of short-term investments - net | 27 | — | 76 | — | 103 | |||||||||||||||||||
Loans to affiliates | (149 | ) | — | (5,855 | ) | 6,004 | — | |||||||||||||||||
Repayments of loans from affiliates | 100 | — | 5,650 | (5,750 | ) | — | ||||||||||||||||||
Proceeds from the sales of businesses | 1 | 14 | — | — | 15 | |||||||||||||||||||
Other - net | (24 | ) | (9 | ) | 8 | — | (25 | ) | ||||||||||||||||
Net cash used in investing activities | (318 | ) | (36 | ) | (700 | ) | 254 | (800 | ) | |||||||||||||||
Financing activities | ||||||||||||||||||||||||
Proceeds from borrowings | 379 | — | 2 | — | 381 | |||||||||||||||||||
Payments on borrowings | (70 | ) | — | (8 | ) | — | (78 | ) | ||||||||||||||||
Payments of financing costs | (3 | ) | — | — | — | (3 | ) | |||||||||||||||||
Proceeds from borrowings from affiliates | 5,855 | — | 149 | (6,004 | ) | — | ||||||||||||||||||
Payments on borrowings from affiliates | (5,650 | ) | — | (100 | ) | 5,750 | — | |||||||||||||||||
Other intercompany financing activities | (42 | ) | (106 | ) | 148 | — | — | |||||||||||||||||
Cash dividends paid | (462 | ) | — | — | — | (462 | ) | |||||||||||||||||
Cash dividends paid to affiliates | — | (32 | ) | (521 | ) | 553 | — | |||||||||||||||||
Exercise of employee stock options | 71 | — | — | — | 71 | |||||||||||||||||||
Repurchase of shares | (343 | ) | — | — | — | (343 | ) | |||||||||||||||||
Excess tax benefit from equity-based compensation | 57 | — | — | — | 57 | |||||||||||||||||||
Other - net | — | — | (4 | ) | — | (4 | ) | |||||||||||||||||
Net cash used in financing activities | (208 | ) | (138 | ) | (334 | ) | 299 | (381 | ) | |||||||||||||||
Effect of currency on cash | — | — | (15 | ) | — | (15 | ) | |||||||||||||||||
Total increase (decrease) in cash | 87 | (3 | ) | (32 | ) | — | 52 | |||||||||||||||||
Cash at the beginning of the period | 33 | 6 | 294 | — | 333 | |||||||||||||||||||
Cash at the end of the period | $ | 120 | $ | 3 | $ | 262 | $ | — | $ | 385 | ||||||||||||||
Summary_of_Significant_Account1
Summary of Significant Accounting Policies Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2013 | |
Accounting Policies [Abstract] | ' |
General Information | ' |
General Information and Basis of Presentation | |
Eaton Corporation plc (Eaton or the Company) is a power management company providing energy-efficient solutions that help its customers effectively manage electrical, hydraulic and mechanical power. With 2013 net sales of $22.0 billion, the Company is a global technology leader in electrical products, systems and services for power quality, distribution and control, power transmission, lighting, and wiring; hydraulics components, systems and services for industrial and mobile equipment; aerospace fuel, hydraulics and pneumatic systems for commercial and military use; and truck and automotive drivetrain and powertrain systems for performance, fuel economy, and safety. Eaton has approximately 102,000 employees in over 60 countries, and sells products to customers in more than 175 countries. | |
The consolidated financial statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States. Preparation of the consolidated financial statements requires management to make estimates and assumptions that affect amounts reported in the consolidated financial statements and notes. Actual results could differ from these estimates. Management has evaluated subsequent events through the date the consolidated financial statements were filed with the Securities Exchange Commission. | |
The consolidated financial statements include the accounts of Eaton and all subsidiaries and other controlled entities. Intercompany transactions and balances have been eliminated. The equity method of accounting is used for investments in associate companies where the Company has a 20% to 50% ownership interest. Equity investments are evaluated for impairment whenever events or circumstances indicate the book value of the investment exceeds fair value. An impairment would exist if there is an other-than-temporary decline in value. These associate companies are not material either individually, or in the aggregate, to Eaton's consolidated financial statements. Eaton does not have off-balance sheet arrangements or financings with unconsolidated entities. In the ordinary course of business, the Company leases certain real properties and equipment, as described in Note 7. | |
Eaton's functional currency is United States Dollars (USD). The functional currency for most subsidiaries is their local currency. Financial statements for these subsidiaries are translated at year-end exchange rates as to assets and liabilities and weighted-average exchange rates as to revenues and expenses. The resulting translation adjustments are recognized in Accumulated other comprehensive loss. | |
Certain prior year amounts have been reclassified to conform to the current year presentation. | |
Business Description and Basis of Presentation [Text Block] | ' |
Eaton Corporation plc (Eaton or the Company) is a power management company providing energy-efficient solutions that help its customers effectively manage electrical, hydraulic and mechanical power. With 2013 net sales of $22.0 billion, the Company is a global technology leader in electrical products, systems and services for power quality, distribution and control, power transmission, lighting, and wiring; hydraulics components, systems and services for industrial and mobile equipment; aerospace fuel, hydraulics and pneumatic systems for commercial and military use; and truck and automotive drivetrain and powertrain systems for performance, fuel economy, and safety. Eaton has approximately 102,000 employees in over 60 countries, and sells products to customers in more than 175 countries. | |
The consolidated financial statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States. Preparation of the consolidated financial statements requires management to make estimates and assumptions that affect amounts reported in the consolidated financial statements and notes. Actual results could differ from these estimates. Management has evaluated subsequent events through the date the consolidated financial statements were filed with the Securities Exchange Commission. | |
Consolidation Policy | ' |
The consolidated financial statements include the accounts of Eaton and all subsidiaries and other controlled entities. Intercompany transactions and balances have been eliminated. The equity method of accounting is used for investments in associate companies where the Company has a 20% to 50% ownership interest. Equity investments are evaluated for impairment whenever events or circumstances indicate the book value of the investment exceeds fair value. An impairment would exist if there is an other-than-temporary decline in value. These associate companies are not material either individually, or in the aggregate, to Eaton's consolidated financial statements. Eaton does not have off-balance sheet arrangements or financings with unconsolidated entities. In the ordinary course of business, the Company leases certain real properties and equipment, as described in Note 7. | |
Foreign Currency Translation | ' |
Eaton's functional currency is United States Dollars (USD). The functional currency for most subsidiaries is their local currency. Financial statements for these subsidiaries are translated at year-end exchange rates as to assets and liabilities and weighted-average exchange rates as to revenues and expenses. The resulting translation adjustments are recognized in Accumulated other comprehensive loss. | |
Reclassifications | ' |
Certain prior year amounts have been reclassified to conform to the current year presentation. | |
Revenue Recognition | ' |
Revenue Recognition | |
Sales of products are recognized when a sales agreement is in place, products have been shipped to unaffiliated customers and title has transferred in accordance with shipping terms, the selling price is fixed and determinable and collectability is reasonably assured, all significant related acts of performance have been completed, and no other significant uncertainties exist. Shipping and handling costs billed to customers are included in Net sales and the related costs in Cost of products sold. Although the majority of the sales agreements contain standard terms and conditions, there are agreements that contain multiple elements or non-standard terms and conditions. As a result, judgment is required to determine the appropriate accounting, including whether the deliverables specified in these agreements should be treated as separate units of accounting for recognition purposes, and, if so, how the sales price should be allocated among the elements and when to recognize sales for each element. For delivered elements, sales are recognized only when the delivered elements have standalone value, fair values of undelivered elements are known, there are no uncertainties regarding customer acceptance, and there are no customer-negotiated refund or return rights affecting the sales recognized for delivered elements. Sales for service contracts generally are recognized as the services are provided. | |
Eaton records reductions to revenue for customer and distributor incentives, primarily comprised of rebates, at the time of the initial sale. Rebates are estimated based on sales terms, historical experience, trend analysis, and projected market conditions in the various markets served. The rebate programs offered vary across businesses due to the numerous markets Eaton serves, but the most common incentives relate to amounts paid or credited to customers for achieving defined volume levels. | |
Long-Lived Assets | ' |
Long-Lived Assets | |
Depreciation and amortization for property, plant and equipment, and intangible assets subject to amortization, are generally computed by the straight-line method and included in Cost of products sold, Selling and administrative expense, and Research and development expense, as appropriate. Cost of buildings are depreciated generally over 40 years and machinery and equipment over 3 to 10 years. At December 31, 2013, the weighted-average amortization period for intangible assets subject to amortization was 17 years for patents and technology, primarily as a result of the long life of aircraft platforms, and 16 years for customer relationships. Software is amortized up to a maximum life of 10 years. | |
Long-lived assets, except goodwill and indefinite life intangible assets, are reviewed for impairment whenever events or changes in circumstances indicate the carrying amount may not be recoverable. Upon indications of impairment, assets and liabilities are grouped at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities. The asset group would be considered impaired when the estimated future net undiscounted cash flows generated by the asset group are less than its carrying value. Determining asset groups and underlying cash flows requires the use of significant judgment. | |
Goodwill and Indefinite Life Intangible Assets | ' |
Goodwill and Indefinite Life Intangible Assets | |
Goodwill and indefinite life intangible assets are evaluated annually for impairment as of July 1 using either a quantitative or qualitative analysis. Goodwill is tested for impairment at the reporting unit level, which is equivalent to Eaton's operating segments, and based on the net assets for each segment, including goodwill and intangible assets. Goodwill is assigned to each operating segment, as this represents the lowest level that constitutes a business and is the level at which management regularly reviews the operating results. The Company performs a quantitative analysis using a discounted cash flow model and other valuation techniques, but may elect to perform a qualitative analysis. | |
Goodwill impairment testing for 2013 was performed using a quantitative analysis under which the fair value for each reporting unit was estimated using a discounted cash flow model, which considered forecasted cash flows discounted at an estimated weighted-average cost of capital. The forecasted cash flows were based on the Company's long-term operating plan and a terminal value was used to estimate the operating segment's cash flows beyond the period covered by the operating plan. The weighted-average cost of capital is an estimate of the overall after-tax rate of return required by equity and debt market holders of a business enterprise. These analyses require the exercise of significant judgments, including judgments about appropriate discount rates, perpetual growth rates and the timing of expected future cash flows of the respective operating segment. Sensitivity analyses were performed around these assumptions in order to assess the reasonableness of the assumptions and the resulting estimated fair values. For 2013, based on a quantitative analysis, the fair values of Eaton's reporting units continue to substantially exceed the respective carrying amounts. | |
A qualitative analysis is performed by assessing certain trends and factors, including projected market outlook and growth rates, forecasted and actual sales and operating profit margins, discount rates, industry data, and other relevant qualitative factors. These trends and factors are compared to, and based on, the assumptions used in the most recent quantitative assessment. Additionally, goodwill and indefinite life intangible assets are evaluated for impairment whenever events or circumstances indicate there may be a possible permanent loss of value. | |
Indefinite life intangible assets primarily consist of trademarks. The fair value of these assets are determined using a royalty relief methodology similar to that employed when the associated assets were acquired, but using updated estimates of future sales, cash flows, and profitability. For 2013 and 2012, the fair value of indefinite lived intangible assets substantially exceeded the respective carrying value. | |
For additional information about goodwill and other intangible assets, see Note 4. | |
Derivative Financial Instruments and Hedging Activities | ' |
Derivative Financial Instruments and Hedging Activities | |
Eaton uses derivative financial instruments to manage the exposure to the volatility in raw material costs, currency, and interest rates on certain debt. These instruments are marked to fair value in the accompanying Consolidated Balance Sheets. Changes in the fair value of derivative assets or liabilities (i.e., gains or losses) are recognized depending upon the type of hedging relationship and whether an instrument has been designated as a hedge. For those instruments that qualify for hedge accounting, Eaton designates the hedging instrument, based upon the exposure being hedged, as a cash flow hedge, a fair value hedge, or a hedge of a net investment in a foreign operation. Changes in fair value of these instruments that do not qualify for hedge accounting are recognized immediately in net income. See Note 12 for additional information about hedges and derivative financial instruments. | |
Warranty Accruals | ' |
Warranty Accruals | |
Product warranty accruals are established at the time the related sale is recognized through a charge to Cost of products sold. Warranty accrual estimates are based primarily on historical warranty claim experience and specific customer contracts. Provisions for warranty accruals are comprised of basic warranties for products sold, as well as accruals for product recalls and other events when they are known and estimable. See Note 7 for additional information about warranty accruals. | |
Asset Retirement Obligations | ' |
Asset Retirement Obligations | |
A conditional asset retirement obligation is recognized at fair value when incurred if the fair value of the liability can be reasonably estimated. Uncertainty about the timing or method of settlement of a conditional asset retirement obligation would be considered in the measurement of the liability when sufficient information exists. Eaton believes that for substantially all of its asset retirement obligations, there is an indeterminate settlement date because the range of time over which the Company may settle the obligation is unknown or cannot be estimated. A liability for these obligations will be recognized when sufficient information is available to estimate fair value. | |
Income Taxes | ' |
Income Taxes | |
Deferred income tax assets and liabilities are determined based on the difference between the financial statement and tax basis of the respective assets and liabilities, using enacted tax rates in effect for the year when the differences are expected to reverse. Deferred income tax assets are recognized for income tax loss carryforwards and income tax credit carryforwards. Judgment is required in determining and evaluating income tax provisions and valuation allowances for deferred income tax assets. Eaton recognizes the income tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by taxing authorities, based on the technical merits of the position. Eaton evaluates and adjusts these accruals based on changing facts and circumstances. Eaton recognizes interest and penalties related to unrecognized income tax benefits in the provision for income tax expense. Penalties on unrecognized income tax benefits have been accrued for jurisdictions where penalties are automatically applied to any deficiency, regardless of the merit of the position. For additional information about income taxes, see Note 8. | |
Equity-Based Compensation | ' |
Equity-Based Compensation | |
Eaton recognizes equity-based compensation expense based on the grant date fair value of the award over the period during which an employee is required to provide service in exchange for the award. Restricted stock units (RSUs) and restricted stock awards (RSAs) are issued at fair market value at the date of grant. The RSUs entitle the holder to receive one ordinary share for each RSU upon vesting, generally over three or four years. RSAs are issued and outstanding at the time of grant, but remain subject to forfeiture until vested, generally over three or four years. Stock options are granted with an exercise price equal to the closing market price of Eaton ordinary shares on the date of grant. The fair value of stock options is determined using a Black-Scholes option-pricing model, which incorporates assumptions regarding the expected volatility, the expected option life, the risk-free interest rate, and the expected dividend yield. See Note 10 for additional information about equity-based compensation. |
Acquisitions_and_Sales_of_Busi1
Acquisitions and Sales of Businesses (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Business Acquisition, Contingent Consideration [Line Items] | ' | |||||||||||
Fair Value of Consideration Transferred [Table Text Block] | ' | |||||||||||
The total purchase price for the acquisition of Cooper was $13,192, comprised of Eaton share consideration valued at $6,649 and cash consideration for Cooper shares of $6,474 and to settle certain Cooper equity-based compensation plans of $69, as follows: | ||||||||||||
Cooper shares outstanding as of November 30, 2012 | 163.6 | |||||||||||
Cooper shares issued pursuant to conversion of stock options and share units outstanding under | 1.8 | |||||||||||
Cooper equity-based compensation plans | ||||||||||||
Total Cooper shares and share equivalents prior to transaction | 165.4 | |||||||||||
Exchange ratio per share | 0.77479 | |||||||||||
Total Eaton shares issued | 128.1 | |||||||||||
Weighted-average Eaton Corporation per share price on November 30, 2012 | $ | 51.91 | ||||||||||
Total value of Eaton shares issued | $ | 6,649 | ||||||||||
Total cash consideration paid at $39.15 per Cooper share and share equivalent | 6,474 | |||||||||||
Total cash consideration paid for equity-based compensation plans | 69 | |||||||||||
Total consideration | $ | 13,192 | ||||||||||
Fair Values of Assets Acquired and Liabilities Assumed [Table Text Block] | ' | |||||||||||
30-Nov-12 | Adjustments | November 30, | ||||||||||
(as previously | 2012 | |||||||||||
reported) | (final adjusted) | |||||||||||
Working capital accounts (1) | $ | 2,304 | $ | (18 | ) | $ | 2,286 | |||||
Prepaid expenses and other current assets | 204 | 69 | 273 | |||||||||
Property, plant and equipment | 885 | (40 | ) | 845 | ||||||||
Investment in Apex Tool Group, LLC | 807 | (7 | ) | 800 | ||||||||
Intangible assets | 5,250 | 119 | 5,369 | |||||||||
Other assets | 35 | 30 | 65 | |||||||||
Debt | (1,221 | ) | — | (1,221 | ) | |||||||
Accounts payable | (519 | ) | 3 | (516 | ) | |||||||
Other current liabilities | (673 | ) | (206 | ) | (879 | ) | ||||||
Other noncurrent liabilities | (2,185 | ) | (177 | ) | (2,362 | ) | ||||||
Total identifiable net assets | 4,887 | (227 | ) | 4,660 | ||||||||
Goodwill | 8,305 | 227 | 8,532 | |||||||||
Total consideration | $ | 13,192 | $ | — | $ | 13,192 | ||||||
(1) Working capital accounts include Cash, Short-term investments, Accounts receivable and Inventory. | ||||||||||||
Business Acquisition, Pro Forma Information [Table Text Block] | ' | |||||||||||
The following unaudited pro forma information gives effect to Eaton's acquisition of Cooper as if the acquisition had occurred on January 1, 2012 and Cooper had been included in Eaton's consolidated results of operations for the year ended December 31, 2012. | ||||||||||||
2012 | ||||||||||||
Net sales | $ | 21,792 | ||||||||||
Net income from continuing operations attributable to Eaton ordinary shareholders | 1,695 | |||||||||||
Diluted earnings per share from continuing operations | $ | 3.54 | ||||||||||
Annual Sales of Acquired Entities From Previous Periods [TableText Block] | ' | |||||||||||
These transactions and the related annual sales prior to acquisition are summarized below: | ||||||||||||
Acquired businesses and joint venture | Date of | Business | Annual sales | |||||||||
transaction | segment | |||||||||||
Rolec Comercial e Industrial S.A. | September 28, | Electrical | $85 for the | |||||||||
2012 | Systems | 12 months | ||||||||||
and | ended | |||||||||||
Services | September 30, | |||||||||||
A Chilean manufacturer of integrated power assemblies and low- and medium-voltage switchgear, and a provider of engineering services serving mining and other heavy industrial applications in Chile and Peru. | 2012 | |||||||||||
Jeil Hydraulics Co., Ltd. | July 6, | Hydraulics | $189 for 2011 | |||||||||
A Korean manufacturer of track drive motors, swing drive motors, main control valves and remote control valves for the construction equipment market. | 2012 | |||||||||||
Polimer Kaucuk Sanayi ve Pazarlama A.S. | June 1, | Hydraulics | $335 for 2011 | |||||||||
A Turkish manufacturer of hydraulic and industrial hose for construction, mining, agriculture, oil and gas, manufacturing, food and beverage, and chemicals markets. This business sells its products under the SEL brand name. | 2012 | |||||||||||
Acquired businesses and joint venture | Date of | Business | Annual sales | |||||||||
transaction | segment | |||||||||||
Gycom Electrical Low-Voltage Power Distribution, Control and Automation | June 1, | Electrical | $24 for 2011 | |||||||||
2012 | Systems | |||||||||||
and | ||||||||||||
A Swedish electrical low-voltage power distribution, control and automation components business. | Services | |||||||||||
E.A. Pedersen Company | December 29, | Electrical | $37 for 2011 | |||||||||
2011 | Systems | |||||||||||
and | ||||||||||||
A United States manufacturer of medium voltage switchgear, metal-clad switchgear, power control buildings and relay control panels primarily for the electrical utilities industry. | Services | |||||||||||
IE Power, Inc. | August 31, | Electrical | $5 for 2010 | |||||||||
2011 | Systems | |||||||||||
and | ||||||||||||
A Canadian provider of high power inverters for a variety of mission-critical applications including solar, wind and battery energy storage. | Services | |||||||||||
E. Begerow GmbH & Co. KG | August 15, | Hydraulics | $84 for 2010 | |||||||||
A German system provider of advanced liquid filtration solutions. This business develops and produces technologically innovative filter media and filtration systems for food and beverage, chemical, pharmaceutical and industrial applications. | 2011 | |||||||||||
ACTOM Low Voltage | June 30, | Electrical | $65 for the | |||||||||
2011 | Systems | year ended | ||||||||||
and | May 31, | |||||||||||
A South African manufacturer and supplier of motor control components, engineered electrical distribution systems and uninterruptible power supply (UPS) systems. | Services | 2011 | ||||||||||
C.I. ESI de Colombia S.A. | June 2, | Electrical | $8 for 2010 | |||||||||
A Colombian distributor of industrial electrical equipment and engineering services in the Colombian market, focused on oil and gas, mining, and industrial and commercial construction. | 2011 | Products | ||||||||||
Internormen Technology Group | May 12, | Hydraulics | $55 for 2010 | |||||||||
A Germany-based manufacturer of hydraulic filtration and instrumentation with sales and distribution subsidiaries in China, the United States, India and Brazil. | 2011 | |||||||||||
Eaton-SAMC (Shanghai) Aircraft Conveyance System Manufacturing | March 8, | Aerospace | Joint venture | |||||||||
Co., Ltd. | 2011 | |||||||||||
A 49%-owned joint venture in China focusing on the design, development, manufacturing and support of fuel and hydraulic conveyance systems for the global civil aviation market. | ||||||||||||
Tuthill Coupling Group | January 1, | Hydraulics | $35 for the | |||||||||
2011 | year ended | |||||||||||
November 30, | ||||||||||||
A United States based manufacturer of pneumatic and hydraulic quick coupling solutions and leak-free connectors used in industrial, construction, mining, defense, energy and power applications. | 2010 |
Acquisition_Integration_and_Re1
Acquisition Integration and Restructuring Charges (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Acquisition Integration Charges [Line Items] | ' | |||||||||||
Acquisition Integration Charges and Transaction Costs | ' | |||||||||||
A summary of these charges follows: | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Acquisition integration charges | ||||||||||||
Electrical Products | $ | 44 | $ | 4 | $ | 1 | ||||||
Electrical Systems and Services | 37 | 13 | 9 | |||||||||
Hydraulics | 36 | 16 | 4 | |||||||||
Total business segments | 117 | 33 | 14 | |||||||||
Corporate | 37 | 11 | — | |||||||||
Total acquisition integration charges | $ | 154 | $ | 44 | $ | 14 | ||||||
Transaction costs | ||||||||||||
Corporate | $ | 8 | $ | 106 | $ | — | ||||||
Financing fees | 1 | 72 | — | |||||||||
Total transaction costs | $ | 9 | $ | 178 | $ | — | ||||||
Total acquisition integration charges and transaction costs before | $ | 163 | $ | 222 | $ | 14 | ||||||
income taxes | ||||||||||||
Total after income taxes | $ | 110 | $ | 167 | $ | 10 | ||||||
Per ordinary share - diluted | $ | 0.23 | $ | 0.48 | $ | 0.03 | ||||||
Goodwill_and_Other_Intangible_1
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||||||
Summary of goodwill | ' | |||||||||||||||
A summary of goodwill follows: | ||||||||||||||||
2013 | 2012 | |||||||||||||||
Electrical Products | $ | 7,189 | $ | 7,117 | ||||||||||||
Electrical Systems and Services | 4,517 | 4,520 | ||||||||||||||
Hydraulics | 1,385 | 1,404 | ||||||||||||||
Aerospace | 1,048 | 1,045 | ||||||||||||||
Vehicle | 356 | 357 | ||||||||||||||
Total goodwill | $ | 14,495 | $ | 14,443 | ||||||||||||
Summary of other intangible assets | ' | |||||||||||||||
A summary of other intangible assets follows: | ||||||||||||||||
2013 | 2012 | |||||||||||||||
Historical | Accumulated | Historical | Accumulated | |||||||||||||
cost | amortization | cost | amortization | |||||||||||||
Intangible assets not subject to amortization | $ | 1,868 | $ | 1,865 | ||||||||||||
(primarily trademarks) | ||||||||||||||||
Intangible assets subject to amortization | ||||||||||||||||
Customer relationships | $ | 3,859 | $ | 669 | $ | 3,838 | $ | 428 | ||||||||
Patents and technology | 1,588 | 389 | 1,626 | 325 | ||||||||||||
Other | 1,155 | 226 | 1,160 | 156 | ||||||||||||
Total other intangible assets | $ | 6,602 | $ | 1,284 | $ | 6,624 | $ | 909 | ||||||||
Expense related to intangible assets subject to amortization in 2012, and for each of the next five years | ' | |||||||||||||||
Amortization expense related to intangible assets subject to amortization in 2013, and estimated amortization expense for each of the next five years, follows: | ||||||||||||||||
2013 | $ | 432 | ||||||||||||||
2014 | 428 | |||||||||||||||
2015 | 422 | |||||||||||||||
2016 | 410 | |||||||||||||||
2017 | 399 | |||||||||||||||
2018 | 379 | |||||||||||||||
Other Intangible Assets Related to the Acquistion of Cooper [Table Text Block] | ' | |||||||||||||||
The estimated fair value of these identifiable intangible assets, their estimated useful lives and valuation methodology are as follows: | ||||||||||||||||
Fair value | Useful life | Valuation method | ||||||||||||||
Trade names (indefinite-lived) | $ | 1,410 | N/A | Relief-from-royalty | ||||||||||||
Trade names | 638 | 20-Mar | Relief-from-royalty | |||||||||||||
Customer relationships | 2,510 | 13-18 | Multi-period excess earnings | |||||||||||||
Technology | 767 | 20-Apr | Relief-from-royalty; | |||||||||||||
Multi-period excess earnings | ||||||||||||||||
Contract-based | 44 | 9.5 | Relief-from-royalty | |||||||||||||
$ | 5,369 | |||||||||||||||
Debt_Tables
Debt (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
DEBT [Abstract] | ' | |||||||
Summary of long-term debt, including the current portion | ' | |||||||
A summary of long-term debt, including the current portion, follows: | ||||||||
2013 | 2012 | |||||||
4.90% notes due 2013 | $ | — | $ | 300 | ||||
5.95% notes due 2014 ($100 converted to floating rate by interest rate swap) | 250 | 250 | ||||||
Floating rate notes due 2014 ($300 converted to fixed rate by interest rate swap) | 300 | 300 | ||||||
5.45% debentures due 2015 | 300 | 300 | ||||||
4.65% notes due 2015 | 100 | 100 | ||||||
0.95% senior notes due 2015 | 600 | 600 | ||||||
2.375% debentures due 2016 | 240 | 250 | ||||||
5.30% notes due 2017 ($150 converted to floating rate by interest rate swap) | 250 | 250 | ||||||
6.10% debentures due 2017 | 289 | 300 | ||||||
1.50% senior notes due 2017 ($450 converted to floating rate by interest rate swap) | 1,000 | 1,000 | ||||||
5.60% notes due 2018 ($415 converted to floating rate by interest rate swap) | 450 | 450 | ||||||
4.215% Japanese Yen notes due 2018 | 95 | 116 | ||||||
6.95% notes due 2019 ($300 converted to floating rate by interest rate swap) | 300 | 300 | ||||||
3.875% debentures due 2020 ($150 converted to floating rate by interest rate swap) | 239 | 250 | ||||||
3.47% notes due 2021 ($150 converted to floating rate by interest rate swap) | 300 | 300 | ||||||
8.10% debentures due 2022 | 100 | 100 | ||||||
2.75% senior notes due 2022 ($1,100 converted to floating rate by interest rate swap) | 1,600 | 1,600 | ||||||
3.68% notes due 2023 ($150 converted to floating rate by interest rate swap) | 300 | 300 | ||||||
6.50% debentures due 2025 | 145 | 145 | ||||||
7.65% debentures due 2029 ($50 converted to floating rate by interest rate swap) | 200 | 200 | ||||||
4.00% senior notes due 2032 | 700 | 700 | ||||||
5.45% debentures due 2034 ($25 converted to floating rate by interest rate swap) | 136 | 140 | ||||||
5.80% notes due 2037 | 240 | 240 | ||||||
4.15% senior notes due 2042 | 1,000 | 1,000 | ||||||
5.25% to 12.5% notes (maturities ranging from 2013 to 2035, including $50 converted to | 249 | 255 | ||||||
floating rate by interest rate swap) | ||||||||
Other | 153 | 333 | ||||||
Total long-term debt | 9,536 | 10,079 | ||||||
Less current portion of long-term debt | (567 | ) | (314 | ) | ||||
Long-term debt less current portion | $ | 8,969 | $ | 9,765 | ||||
Mandatory maturities of long-term debt for each of the next five years | ' | |||||||
Mandatory maturities of long-term debt for each of the next five years follow: | ||||||||
2014 | $ | 567 | ||||||
2015 | 1,005 | |||||||
2016 | 250 | |||||||
2017 | 1,540 | |||||||
2018 | 582 | |||||||
Interest paid on debt | ' | |||||||
Interest paid on debt follows: | ||||||||
2013 | $ | 294 | ||||||
2012 | 237 | |||||||
2011 | 174 | |||||||
Retirement_Benefits_Plans_Tabl
Retirement Benefits Plans (Tables) | 12 Months Ended | |||||||||||||||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||||||||||||||
Retirement Benefit Plans (Tables) [Abstract] | ' | |||||||||||||||||||||||||||||||||||
Obligations and funded status | ' | |||||||||||||||||||||||||||||||||||
Obligations and Funded Status | ||||||||||||||||||||||||||||||||||||
United States | Non-United States | Other postretirement | ||||||||||||||||||||||||||||||||||
pension liabilities | pension liabilities | liabilities | ||||||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||||||
Funded status | ||||||||||||||||||||||||||||||||||||
Fair value of plan assets | $ | 2,940 | $ | 2,607 | $ | 1,432 | $ | 1,248 | $ | 138 | $ | 146 | ||||||||||||||||||||||||
Benefit obligations | (3,625 | ) | (3,817 | ) | (2,127 | ) | (2,017 | ) | (867 | ) | (950 | ) | ||||||||||||||||||||||||
Funded status | $ | (685 | ) | $ | (1,210 | ) | $ | (695 | ) | $ | (769 | ) | $ | (729 | ) | $ | (804 | ) | ||||||||||||||||||
Amounts recognized in the Consolidated | ||||||||||||||||||||||||||||||||||||
Balance Sheets | ||||||||||||||||||||||||||||||||||||
Non-current assets | $ | 44 | $ | — | $ | 86 | $ | 72 | $ | — | $ | — | ||||||||||||||||||||||||
Current liabilities | (15 | ) | (15 | ) | (30 | ) | (33 | ) | (61 | ) | (62 | ) | ||||||||||||||||||||||||
Non-current liabilities | (714 | ) | (1,195 | ) | (751 | ) | (808 | ) | (668 | ) | (742 | ) | ||||||||||||||||||||||||
Total | $ | (685 | ) | $ | (1,210 | ) | $ | (695 | ) | $ | (769 | ) | $ | (729 | ) | $ | (804 | ) | ||||||||||||||||||
Amounts recognized in Accumulated other | ||||||||||||||||||||||||||||||||||||
comprehensive loss (pretax) | ||||||||||||||||||||||||||||||||||||
Net actuarial loss | $ | 1,051 | $ | 1,618 | $ | 515 | $ | 550 | $ | 190 | $ | 269 | ||||||||||||||||||||||||
Prior service cost (credit) | 3 | 1 | 13 | 9 | (6 | ) | (7 | ) | ||||||||||||||||||||||||||||
Other | — | 2 | — | — | — | — | ||||||||||||||||||||||||||||||
Total | $ | 1,054 | $ | 1,621 | $ | 528 | $ | 559 | $ | 184 | $ | 262 | ||||||||||||||||||||||||
Change in benefit obligations | ' | |||||||||||||||||||||||||||||||||||
Change in Benefit Obligations | ||||||||||||||||||||||||||||||||||||
United States | Non-United States | Other postretirement | ||||||||||||||||||||||||||||||||||
pension liabilities | pension liabilities | liabilities | ||||||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||||||
Balance at January 1 | $ | 3,817 | $ | 2,899 | $ | 2,017 | $ | 1,505 | $ | 950 | $ | 853 | ||||||||||||||||||||||||
Service cost | 128 | 115 | 62 | 50 | 20 | 17 | ||||||||||||||||||||||||||||||
Interest cost | 147 | 134 | 80 | 77 | 35 | 38 | ||||||||||||||||||||||||||||||
Actuarial (gain) loss | (223 | ) | 264 | 21 | 196 | (54 | ) | 34 | ||||||||||||||||||||||||||||
Gross benefits paid | (246 | ) | (132 | ) | (90 | ) | (78 | ) | (103 | ) | (94 | ) | ||||||||||||||||||||||||
Currency translation | — | — | 36 | 54 | (2 | ) | — | |||||||||||||||||||||||||||||
Acquisitions | — | 536 | — | 212 | — | 74 | ||||||||||||||||||||||||||||||
Other | 2 | 1 | 1 | 1 | 21 | 28 | ||||||||||||||||||||||||||||||
Balance at December 31 | $ | 3,625 | $ | 3,817 | $ | 2,127 | $ | 2,017 | $ | 867 | $ | 950 | ||||||||||||||||||||||||
Accumulated benefit obligation | $ | 3,458 | $ | 3,639 | $ | 2,003 | $ | 1,885 | ||||||||||||||||||||||||||||
Change in plan assets | ' | |||||||||||||||||||||||||||||||||||
Change in Plan Assets | ||||||||||||||||||||||||||||||||||||
United States | Non-United States | Other postretirement | ||||||||||||||||||||||||||||||||||
pension liabilities | pension liabilities | liabilities | ||||||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||||||
Balance at January 1 | $ | 2,607 | $ | 1,664 | $ | 1,248 | $ | 989 | $ | 146 | $ | 156 | ||||||||||||||||||||||||
Actual return on plan assets | 383 | 293 | 118 | 86 | 15 | 13 | ||||||||||||||||||||||||||||||
Employer contributions | 196 | 311 | 145 | 102 | 59 | 43 | ||||||||||||||||||||||||||||||
Gross benefits paid | (246 | ) | (132 | ) | (90 | ) | (78 | ) | (103 | ) | (94 | ) | ||||||||||||||||||||||||
Currency translation | — | — | 15 | 39 | — | — | ||||||||||||||||||||||||||||||
Acquisitions | — | 471 | — | 128 | — | — | ||||||||||||||||||||||||||||||
Other | — | — | (4 | ) | (18 | ) | 21 | 28 | ||||||||||||||||||||||||||||
Balance at December 31 | $ | 2,940 | $ | 2,607 | $ | 1,432 | $ | 1,248 | $ | 138 | $ | 146 | ||||||||||||||||||||||||
Components of pension plans with accumulated benefit obligations in excess of plan assets | ' | |||||||||||||||||||||||||||||||||||
The components of pension plans with an accumulated benefit obligation in excess of plan assets at December 31 follow: | ||||||||||||||||||||||||||||||||||||
United States | Non-United States | |||||||||||||||||||||||||||||||||||
pension liabilities | pension liabilities | |||||||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||||||||
Projected benefit obligation | $ | 3,166 | $ | 3,817 | $ | 1,411 | $ | 1,412 | ||||||||||||||||||||||||||||
Accumulated benefit obligation | 2,999 | 3,639 | 1,349 | 1,307 | ||||||||||||||||||||||||||||||||
Fair value of plan assets | 2,437 | 2,607 | 635 | 657 | ||||||||||||||||||||||||||||||||
Changes in pension and other postretirement benefits liabilities recognized in Accumulated other comprehensive loss | ' | |||||||||||||||||||||||||||||||||||
Changes in pension and other postretirement benefit liabilities recognized in Accumulated other comprehensive loss follow: | ||||||||||||||||||||||||||||||||||||
United States | Non-United States | Other postretirement | ||||||||||||||||||||||||||||||||||
pension liabilities | pension liabilities | liabilities | ||||||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||||||
Balance at January 1 | $ | 1,621 | $ | 1,602 | $ | 559 | $ | 358 | $ | 262 | $ | 248 | ||||||||||||||||||||||||
Prior service cost arising during the year | 2 | 1 | 4 | — | — | — | ||||||||||||||||||||||||||||||
Net (gain) loss arising during the year | (381 | ) | 154 | (12 | ) | 205 | (63 | ) | 27 | |||||||||||||||||||||||||||
Currency translation | — | — | 6 | 15 | (1 | ) | — | |||||||||||||||||||||||||||||
Less amounts included in expense during the year | (186 | ) | (138 | ) | (29 | ) | (19 | ) | (14 | ) | (13 | ) | ||||||||||||||||||||||||
Other | (2 | ) | 2 | — | — | — | — | |||||||||||||||||||||||||||||
Net change for the year | (567 | ) | 19 | (31 | ) | 201 | (78 | ) | 14 | |||||||||||||||||||||||||||
Balance at December 31 | $ | 1,054 | $ | 1,621 | $ | 528 | $ | 559 | $ | 184 | $ | 262 | ||||||||||||||||||||||||
Benefits expense | ' | |||||||||||||||||||||||||||||||||||
Benefits Expense | ||||||||||||||||||||||||||||||||||||
United States | Non-United States | Other postretirement | ||||||||||||||||||||||||||||||||||
pension benefit expense | pension benefit expense | benefits expense | ||||||||||||||||||||||||||||||||||
2013 | 2012 | 2011 | 2013 | 2012 | 2011 | 2013 | 2012 | 2011 | ||||||||||||||||||||||||||||
Service cost | $ | 128 | $ | 115 | $ | 93 | $ | 62 | $ | 50 | $ | 48 | $ | 20 | $ | 17 | $ | 15 | ||||||||||||||||||
Interest cost | 147 | 134 | 132 | 80 | 77 | 78 | 35 | 38 | 41 | |||||||||||||||||||||||||||
Expected return on plan assets | (226 | ) | (183 | ) | (164 | ) | (85 | ) | (77 | ) | (70 | ) | (6 | ) | (6 | ) | — | |||||||||||||||||||
Amortization | 133 | 118 | 75 | 27 | 15 | 13 | 14 | 13 | 12 | |||||||||||||||||||||||||||
182 | 184 | 136 | 84 | 65 | 69 | 63 | 62 | 68 | ||||||||||||||||||||||||||||
Curtailment loss | — | — | — | 1 | 1 | 1 | — | — | — | |||||||||||||||||||||||||||
Settlement loss | 53 | 20 | 17 | 1 | 3 | 4 | — | — | — | |||||||||||||||||||||||||||
Total expense | $ | 235 | $ | 204 | $ | 153 | $ | 86 | $ | 69 | $ | 74 | $ | 63 | $ | 62 | $ | 68 | ||||||||||||||||||
Estimated pretax net amounts that will be recognized from Accumulated other comprehensive loss into net periodic benefit cost | ' | |||||||||||||||||||||||||||||||||||
The estimated pretax net amounts that will be recognized from Accumulated other comprehensive loss into net periodic benefit cost in 2014 follow: | ||||||||||||||||||||||||||||||||||||
United States | Non-United States | Other postretirement | ||||||||||||||||||||||||||||||||||
pension liabilities | pension liabilities | liabilities | ||||||||||||||||||||||||||||||||||
Actuarial loss | $ | 155 | $ | 26 | $ | 9 | ||||||||||||||||||||||||||||||
Prior service cost (credit) | — | 1 | (2 | ) | ||||||||||||||||||||||||||||||||
Total | $ | 155 | $ | 27 | $ | 7 | ||||||||||||||||||||||||||||||
Assumptions used to determine other postretirement obligations and expense | ' | |||||||||||||||||||||||||||||||||||
Pension Plans | ||||||||||||||||||||||||||||||||||||
United States | Non-United States | |||||||||||||||||||||||||||||||||||
pension plans | pension plans | |||||||||||||||||||||||||||||||||||
2013 | 2012 | 2011 | 2013 | 2012 | 2011 | |||||||||||||||||||||||||||||||
Assumptions used to determine benefit obligation at year-end | ||||||||||||||||||||||||||||||||||||
Discount rate | 4.67 | % | 3.97 | % | 4.7 | % | 4.2 | % | 4.17 | % | 5.12 | % | ||||||||||||||||||||||||
Rate of compensation increase | 3.16 | % | 3.16 | % | 3.15 | % | 3.12 | % | 3.09 | % | 3.62 | % | ||||||||||||||||||||||||
Assumptions used to determine expense | ||||||||||||||||||||||||||||||||||||
Discount rate | 3.97 | % | 4.7 | % | 5.5 | % | 4.17 | % | 5.12 | % | 5.4 | % | ||||||||||||||||||||||||
Expected long-term return on plan assets | 8.45 | % | 8.5 | % | 8.5 | % | 6.92 | % | 7.1 | % | 7.17 | % | ||||||||||||||||||||||||
Rate of compensation increase | 3.16 | % | 3.15 | % | 3.61 | % | 3.09 | % | 3.62 | % | 3.63 | % | ||||||||||||||||||||||||
Assumptions used to determine other postretirement benefits obligations and expense | ' | |||||||||||||||||||||||||||||||||||
Assumptions used to determine other postretirement benefits obligations and expense follow: | ||||||||||||||||||||||||||||||||||||
Other postretirement | ||||||||||||||||||||||||||||||||||||
benefits plans | ||||||||||||||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||||||||||||||
Assumptions used to determine benefit obligation at year-end | ||||||||||||||||||||||||||||||||||||
Discount rate | 4.48 | % | 3.79 | % | 4.6 | % | ||||||||||||||||||||||||||||||
Health care cost trend rate assumed for next year | 6.64 | % | 6.96 | % | 7.6 | % | ||||||||||||||||||||||||||||||
Ultimate health care cost trend rate | 4.77 | % | 4.53 | % | 4.5 | % | ||||||||||||||||||||||||||||||
Year ultimate health care cost trend rate is achieved | 2023 | 2022 | 2020 | |||||||||||||||||||||||||||||||||
Assumptions used to determine expense | ||||||||||||||||||||||||||||||||||||
Discount rate | 3.79 | % | 4.6 | % | 5.2 | % | ||||||||||||||||||||||||||||||
Initial health care cost trend rate | 6.96 | % | 7.6 | % | 8.1 | % | ||||||||||||||||||||||||||||||
Ultimate health care cost trend rate | 4.53 | % | 4.5 | % | 4.5 | % | ||||||||||||||||||||||||||||||
Year ultimate health care cost trend rate is achieved | 2022 | 2020 | 2020 | |||||||||||||||||||||||||||||||||
1-percentage change in the assumed health care cost trend rates | ' | |||||||||||||||||||||||||||||||||||
A 1-percentage point change in the assumed health care cost trend rates would have the following effects: | ||||||||||||||||||||||||||||||||||||
1% increase | 1% decrease | |||||||||||||||||||||||||||||||||||
Effect on total service and interest cost | $ | 1 | $ | (1 | ) | |||||||||||||||||||||||||||||||
Effect on other postretirement liabilities | 21 | (19 | ) | |||||||||||||||||||||||||||||||||
Employer contributions to pension plans | ' | |||||||||||||||||||||||||||||||||||
Contributions to pension plans that Eaton expects to make in 2014, and made in 2013, 2012 and 2011, follow: | ||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | 2011 | |||||||||||||||||||||||||||||||||
United States plans | $ | 254 | $ | 196 | $ | 311 | $ | 264 | ||||||||||||||||||||||||||||
Non-United States plans | 108 | 145 | 102 | 108 | ||||||||||||||||||||||||||||||||
Total contributions | $ | 362 | $ | 341 | $ | 413 | $ | 372 | ||||||||||||||||||||||||||||
Expected pension and other postretirement benefit payments and expected subsidy | ' | |||||||||||||||||||||||||||||||||||
For other postretirement benefits liabilities, the expected subsidy receipts relate to the Medicare Prescription Drug, Improvement, and Modernization Act of 2003, which would reduce the gross payments listed below. | ||||||||||||||||||||||||||||||||||||
Estimated | Estimated | Estimated other postretirement | ||||||||||||||||||||||||||||||||||
United States | non-United States | benefit payments | ||||||||||||||||||||||||||||||||||
pension payments | pension payments | Gross | Medicare prescription | |||||||||||||||||||||||||||||||||
drug subsidy | ||||||||||||||||||||||||||||||||||||
2014 | $ | 314 | $ | 91 | $ | 93 | $ | (6 | ) | |||||||||||||||||||||||||||
2015 | 256 | 92 | 86 | (6 | ) | |||||||||||||||||||||||||||||||
2016 | 273 | 94 | 82 | (6 | ) | |||||||||||||||||||||||||||||||
2017 | 277 | 99 | 78 | (5 | ) | |||||||||||||||||||||||||||||||
2018 | 283 | 101 | 74 | (4 | ) | |||||||||||||||||||||||||||||||
2019 - 2023 | 1,499 | 545 | 316 | (13 | ) | |||||||||||||||||||||||||||||||
Fair value of pension plan assets | ' | |||||||||||||||||||||||||||||||||||
A summary of the fair value of pension plan assets at December 31, 2013 and 2012, follows: | ||||||||||||||||||||||||||||||||||||
Total | Quoted prices | Other | Unobservable | |||||||||||||||||||||||||||||||||
in active | observable | inputs | ||||||||||||||||||||||||||||||||||
markets for | inputs | (Level 3) | ||||||||||||||||||||||||||||||||||
identical assets | (Level 2) | |||||||||||||||||||||||||||||||||||
(Level 1) | ||||||||||||||||||||||||||||||||||||
2013 | ||||||||||||||||||||||||||||||||||||
Common collective trusts | ||||||||||||||||||||||||||||||||||||
Non-United States equity and global equities | $ | 1,453 | $ | — | $ | 1,453 | $ | — | ||||||||||||||||||||||||||||
United States equity | 1,153 | — | 1,153 | — | ||||||||||||||||||||||||||||||||
Fixed income | 609 | — | 609 | — | ||||||||||||||||||||||||||||||||
Long duration funds | 63 | — | 63 | — | ||||||||||||||||||||||||||||||||
Exchange traded funds | 64 | — | 64 | — | ||||||||||||||||||||||||||||||||
Fixed income securities | 274 | — | 274 | — | ||||||||||||||||||||||||||||||||
United States treasuries | 63 | 63 | — | — | ||||||||||||||||||||||||||||||||
Real estate securities | 220 | 214 | — | 6 | ||||||||||||||||||||||||||||||||
Equity securities | 141 | 141 | — | — | ||||||||||||||||||||||||||||||||
Cash equivalents | 187 | 6 | 181 | — | ||||||||||||||||||||||||||||||||
Exchange traded funds | 47 | 47 | — | — | ||||||||||||||||||||||||||||||||
Other | 98 | — | 4 | 94 | ||||||||||||||||||||||||||||||||
Total pension plan assets | $ | 4,372 | $ | 471 | $ | 3,801 | $ | 100 | ||||||||||||||||||||||||||||
Total | Quoted prices | Other | Unobservable | |||||||||||||||||||||||||||||||||
in active | observable | inputs | ||||||||||||||||||||||||||||||||||
markets for | inputs | (Level 3) | ||||||||||||||||||||||||||||||||||
identical assets | (Level 2) | |||||||||||||||||||||||||||||||||||
(Level 1) | ||||||||||||||||||||||||||||||||||||
2012 | ||||||||||||||||||||||||||||||||||||
Common collective trusts | ||||||||||||||||||||||||||||||||||||
Non-United States equity and global equities | $ | 1,313 | $ | — | $ | 1,313 | $ | — | ||||||||||||||||||||||||||||
United States equity | 978 | — | 978 | — | ||||||||||||||||||||||||||||||||
Fixed income | 538 | — | 538 | — | ||||||||||||||||||||||||||||||||
Long duration funds | 61 | — | 61 | — | ||||||||||||||||||||||||||||||||
Exchange traded funds | 43 | — | 43 | — | ||||||||||||||||||||||||||||||||
Fixed income securities | 331 | — | 331 | — | ||||||||||||||||||||||||||||||||
United States treasuries | 143 | 143 | — | — | ||||||||||||||||||||||||||||||||
Real estate securities | 124 | 119 | — | 5 | ||||||||||||||||||||||||||||||||
Equity securities | 104 | 104 | — | — | ||||||||||||||||||||||||||||||||
Cash equivalents | 140 | 7 | 133 | — | ||||||||||||||||||||||||||||||||
Exchange traded funds | 40 | 40 | — | — | ||||||||||||||||||||||||||||||||
Other | 40 | 3 | 1 | 36 | ||||||||||||||||||||||||||||||||
Total pension plan assets | $ | 3,855 | $ | 416 | $ | 3,398 | $ | 41 | ||||||||||||||||||||||||||||
Fair value of other postretirement benefits plan assets | ' | |||||||||||||||||||||||||||||||||||
A summary of the fair value of other postretirement benefits plan assets at December 31, 2013 and 2012, follows: | ||||||||||||||||||||||||||||||||||||
Total | Quoted prices | Other | Unobservable | |||||||||||||||||||||||||||||||||
in active | observable | inputs | ||||||||||||||||||||||||||||||||||
markets for | inputs | (Level 3) | ||||||||||||||||||||||||||||||||||
identical assets | (Level 2) | |||||||||||||||||||||||||||||||||||
(Level 1) | ||||||||||||||||||||||||||||||||||||
2013 | ||||||||||||||||||||||||||||||||||||
Common collective trusts | ||||||||||||||||||||||||||||||||||||
Global equities | $ | 70 | $ | — | $ | 70 | $ | — | ||||||||||||||||||||||||||||
Fixed income securities | 29 | — | 29 | — | ||||||||||||||||||||||||||||||||
United States treasuries | 38 | 38 | — | — | ||||||||||||||||||||||||||||||||
Cash equivalents | 1 | 1 | — | — | ||||||||||||||||||||||||||||||||
Total other postretirement benefits plan assets | $ | 138 | $ | 39 | $ | 99 | $ | — | ||||||||||||||||||||||||||||
2012 | ||||||||||||||||||||||||||||||||||||
Common collective trusts | ||||||||||||||||||||||||||||||||||||
Global equities | $ | 75 | $ | — | $ | 75 | $ | — | ||||||||||||||||||||||||||||
Fixed income securities | 29 | — | 29 | — | ||||||||||||||||||||||||||||||||
United States treasuries | 38 | 38 | — | — | ||||||||||||||||||||||||||||||||
Cash equivalents | 4 | 4 | — | — | ||||||||||||||||||||||||||||||||
Total other postretirement benefits plan assets | $ | 146 | $ | 42 | $ | 104 | $ | — | ||||||||||||||||||||||||||||
Employer contributions to defined contribution benefit plans, charged to expense | ' | |||||||||||||||||||||||||||||||||||
The total contributions related to these plans are charged to expense and were as follows: | ||||||||||||||||||||||||||||||||||||
2013 | $ | 121 | ||||||||||||||||||||||||||||||||||
2012 | 74 | |||||||||||||||||||||||||||||||||||
2011 | 65 | |||||||||||||||||||||||||||||||||||
Commitments_and_Contingencies_
Commitments and Contingencies Commitments and Contingencies (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Commitments and Contingencies [Abstract] | ' | |||||||||||
Current and long-term warranty accruals | ' | |||||||||||
A summary of the current and long-term warranty accruals follows: | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Balance at January 1 | $ | 185 | $ | 158 | $ | 153 | ||||||
Provision | 107 | 85 | 98 | |||||||||
Settled | (99 | ) | (84 | ) | (94 | ) | ||||||
Other | (4 | ) | 26 | 1 | ||||||||
Balance at December 31 | $ | 189 | $ | 185 | $ | 158 | ||||||
Future minimum rental commitments for noncancelable operating leases | ' | |||||||||||
A summary of minimum rental commitments at December 31, 2013 under noncancelable operating leases, which expire at various dates and in most cases contain renewal options, for each of the next five years and thereafter in the aggregate, follow: | ||||||||||||
2014 | $ | 185 | ||||||||||
2015 | 144 | |||||||||||
2016 | 100 | |||||||||||
2017 | 72 | |||||||||||
2018 | 57 | |||||||||||
Thereafter | 92 | |||||||||||
Total noncancelable lease commitments | $ | 650 | ||||||||||
Rental expense | ' | |||||||||||
A summary of rental expense follows: | ||||||||||||
2013 | $ | 241 | ||||||||||
2012 | 199 | |||||||||||
2011 | 194 | |||||||||||
Income_Taxes_Income_Taxes_Tabl
Income Taxes Income Taxes (Tables) | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||
Income Taxes [Abstract] | ' | |||||||||||||||||||||||
Income before income taxes | ' | |||||||||||||||||||||||
Income before income taxes | ||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||
Ireland | $ | 184 | $ | — | $ | — | ||||||||||||||||||
Foreign | 1,700 | 1,251 | 1,553 | |||||||||||||||||||||
Total income before income taxes | $ | 1,884 | $ | 1,251 | $ | 1,553 | ||||||||||||||||||
Income tax expense (benefit) | ' | |||||||||||||||||||||||
Income tax expense (benefit) | ||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||
Current | ||||||||||||||||||||||||
Ireland | $ | 17 | $ | — | $ | — | ||||||||||||||||||
United States | ||||||||||||||||||||||||
Federal | 89 | 1 | 85 | |||||||||||||||||||||
State and local | 7 | 5 | 2 | |||||||||||||||||||||
Foreign - other | 244 | 130 | 186 | |||||||||||||||||||||
Total current income tax expense | 357 | 136 | 273 | |||||||||||||||||||||
Deferred | ||||||||||||||||||||||||
Ireland | — | — | — | |||||||||||||||||||||
United States | ||||||||||||||||||||||||
Federal | (295 | ) | 39 | (2 | ) | |||||||||||||||||||
State and local | (23 | ) | 2 | 8 | ||||||||||||||||||||
Foreign - other | (28 | ) | (146 | ) | (78 | ) | ||||||||||||||||||
Total deferred income tax benefit | (346 | ) | (105 | ) | (72 | ) | ||||||||||||||||||
Total income tax expense | $ | 11 | $ | 31 | $ | 201 | ||||||||||||||||||
Reconciliations of income taxes from the appropriate statutory rate | ' | |||||||||||||||||||||||
Reconciliations of income taxes from the Ireland national statutory rate of 25% in 2013, and the United States federal statutory rate of 35% in 2012 and 2011, to the consolidated effective income tax rate follow: | ||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||
Income taxes at the applicable statutory rate | 25 | % | 35 | % | 35 | % | ||||||||||||||||||
Ireland tax on trading income | (1.4 | )% | — | % | — | % | ||||||||||||||||||
United States operations | ||||||||||||||||||||||||
United States income (loss) | (2.8 | )% | — | % | — | % | ||||||||||||||||||
State and local income taxes | (0.5 | )% | 0.6 | % | 0.2 | % | ||||||||||||||||||
Deductible dividends | — | % | (0.7 | )% | (0.5 | )% | ||||||||||||||||||
Deductible interest | (0.3 | )% | (0.8 | )% | (0.5 | )% | ||||||||||||||||||
Credit for research activities | (2.0 | )% | — | % | (1.0 | )% | ||||||||||||||||||
Impact of U.S. Health Care Reform and Education Reconciliation Act | — | % | — | % | (0.9 | )% | ||||||||||||||||||
and pre-funding on taxation associated with Medicare Part D | ||||||||||||||||||||||||
Other - net | 2.1 | % | 2.7 | % | 0.5 | % | ||||||||||||||||||
Other foreign operations | ||||||||||||||||||||||||
United States foreign tax credit | (1.8 | )% | (12.4 | )% | (2.3 | )% | ||||||||||||||||||
Other foreign operations (earnings taxed at other than | (17.6 | )% | (14.9 | )% | (15.5 | )% | ||||||||||||||||||
the applicable statutory tax rate) | ||||||||||||||||||||||||
Other foreign operations - other items | 0.2 | % | — | % | — | % | ||||||||||||||||||
Worldwide operations | ||||||||||||||||||||||||
Adjustments to tax liabilities | (1.1 | )% | (5.7 | )% | (0.8 | )% | ||||||||||||||||||
Adjustments to valuation allowances | 0.8 | % | (1.3 | )% | (1.3 | )% | ||||||||||||||||||
Effective income tax expense rate | 0.6 | % | 2.5 | % | 12.9 | % | ||||||||||||||||||
Worldwide income tax payments | ' | |||||||||||||||||||||||
Worldwide income tax payments follow: | ||||||||||||||||||||||||
2013 | $ | 272 | ||||||||||||||||||||||
2012 | 254 | |||||||||||||||||||||||
2011 | 191 | |||||||||||||||||||||||
Components of current and long-term deferred income taxes | ' | |||||||||||||||||||||||
Components of current and long-term deferred income taxes follow: | ||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||
Current | Long-term | Current | Long-term | |||||||||||||||||||||
assets and | assets and | assets and | assets and | |||||||||||||||||||||
liabilities | liabilities | liabilities | liabilities | |||||||||||||||||||||
Accruals and other adjustments | ||||||||||||||||||||||||
Employee benefits | $ | 116 | $ | 657 | $ | 92 | $ | 857 | ||||||||||||||||
Depreciation and amortization | (2 | ) | (2,294 | ) | (3 | ) | (2,793 | ) | ||||||||||||||||
Other accruals and adjustments | 497 | 368 | 495 | 297 | ||||||||||||||||||||
Other items | — | — | — | 145 | ||||||||||||||||||||
United States federal income tax loss carryforwards | — | — | — | 6 | ||||||||||||||||||||
United States federal income tax credit carryforwards | — | 161 | — | 156 | ||||||||||||||||||||
United States state and local tax loss carryforwards and | — | 73 | — | 71 | ||||||||||||||||||||
tax credit carryforwards | ||||||||||||||||||||||||
Other foreign tax loss carryforwards | — | 1,708 | — | 1,591 | ||||||||||||||||||||
Other foreign income tax credit carryforwards | — | 63 | — | 67 | ||||||||||||||||||||
Valuation allowance for income tax loss and income tax | — | (1,738 | ) | (61 | ) | (1,521 | ) | |||||||||||||||||
credit carryforwards | ||||||||||||||||||||||||
Other valuation allowances | (34 | ) | (71 | ) | (7 | ) | (71 | ) | ||||||||||||||||
Total deferred income taxes | $ | 577 | $ | (1,073 | ) | $ | 516 | $ | (1,195 | ) | ||||||||||||||
United States federal income tax loss carryforwards and income tax credit carryforwards and expiration dates | ' | |||||||||||||||||||||||
These carryforwards and their expiration dates are summarized below: | ||||||||||||||||||||||||
2014 | 2019 | 2024 | 2029 | Not | ||||||||||||||||||||
through | through | through | through | subject to | Valuation | |||||||||||||||||||
2018 | 2023 | 2028 | 2033 | expiration | allowance | |||||||||||||||||||
United States federal income tax loss carryforwards | $ | 1 | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||
United States federal income tax credit carryforwards | 3 | 70 | — | 69 | 19 | (51 | ) | |||||||||||||||||
United States state and local tax loss carryforwards and tax credit carryforwards and expiration dates | ' | |||||||||||||||||||||||
These carryforwards and their expiration dates are summarized below: | ||||||||||||||||||||||||
2014 | 2019 | 2024 | 2029 | Not | ||||||||||||||||||||
through | through | through | through | subject to | Valuation | |||||||||||||||||||
2018 | 2023 | 2028 | 2033 | expiration | allowance | |||||||||||||||||||
United States state and local assets for income tax | $ | 4 | $ | 15 | $ | 13 | $ | 5 | $ | — | $ | (15 | ) | |||||||||||
loss carryforwards - net of federal tax effect | ||||||||||||||||||||||||
United States state and local income tax credit | 11 | 9 | 7 | 3 | 6 | (16 | ) | |||||||||||||||||
carryforwards - net of federal tax effect | ||||||||||||||||||||||||
Other foreign subsidiaries tax loss carryforwards and income tax credit carryforwards and expiration dates | ' | |||||||||||||||||||||||
These carryforwards and their expiration dates are summarized below: | ||||||||||||||||||||||||
2014 | 2019 | 2024 | 2029 | Not | ||||||||||||||||||||
through | through | through | through | subject to | Valuation | |||||||||||||||||||
2018 | 2023 | 2028 | 2033 | expiration | allowance | |||||||||||||||||||
Other foreign income tax loss carryforwards | $ | 136 | $ | 130 | $ | 48 | $ | 18 | $ | 7,654 | $ | — | ||||||||||||
Other foreign deferred income tax assets for income | 35 | 32 | 14 | 5 | 1,622 | (1,646 | ) | |||||||||||||||||
tax loss carryforwards | ||||||||||||||||||||||||
Other foreign income tax credit carryforwards | 39 | 13 | 2 | — | 9 | (10 | ) | |||||||||||||||||
Summary of gross unrecognized income tax benefits | ' | |||||||||||||||||||||||
A summary of gross unrecognized income tax benefits follows: | ||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||
Balance at January 1 | $ | 444 | $ | 236 | $ | 224 | ||||||||||||||||||
Increases and decreases as a result of positions taken during prior years | ||||||||||||||||||||||||
Transfers from valuation allowances | 13 | — | — | |||||||||||||||||||||
Other increases | 7 | 1 | 3 | |||||||||||||||||||||
Other decreases, including currency translation | (7 | ) | — | (14 | ) | |||||||||||||||||||
Balances related to acquired businesses | 2 | 177 | 2 | |||||||||||||||||||||
Increases as a result of positions taken during the current year | 35 | 36 | 31 | |||||||||||||||||||||
Decreases relating to settlements with tax authorities | (6 | ) | — | (2 | ) | |||||||||||||||||||
Decreases as a result of a lapse of the applicable statute of limitations | (9 | ) | (6 | ) | (8 | ) | ||||||||||||||||||
Balance at December 31 | $ | 479 | $ | 444 | $ | 236 | ||||||||||||||||||
Eaton_Shareholders_Equity_Tabl
Eaton Shareholders' Equity (Tables) | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||
Equity [Abstract] | ' | |||||||||||||||||||||||
Comprehensive Income (Loss) | ' | |||||||||||||||||||||||
The following table summarizes the pre-tax and after-tax amounts recognized in Comprehensive income (loss): | ||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||
Pre-tax | After-tax | Pre-tax | After-tax | Pre-tax | After-tax | |||||||||||||||||||
Currency translation and related hedging instruments | $ | (30 | ) | $ | (28 | ) | $ | 144 | $ | 135 | $ | (252 | ) | $ | (241 | ) | ||||||||
Pensions and other postretirement benefits | ||||||||||||||||||||||||
Prior service cost arising during the year | (6 | ) | (4 | ) | (1 | ) | (1 | ) | (5 | ) | (4 | ) | ||||||||||||
Net gain (loss) arising during the year | 456 | 277 | (386 | ) | (262 | ) | (648 | ) | (417 | ) | ||||||||||||||
Currency translation | (5 | ) | (4 | ) | (15 | ) | (12 | ) | 5 | 4 | ||||||||||||||
Other | 2 | 16 | (2 | ) | 15 | — | (15 | ) | ||||||||||||||||
Amortization of actuarial loss and prior service cost | 229 | 144 | 170 | 108 | 122 | 79 | ||||||||||||||||||
reclassified to earnings | ||||||||||||||||||||||||
676 | 429 | (234 | ) | (152 | ) | (526 | ) | (353 | ) | |||||||||||||||
Cash flow hedges | ||||||||||||||||||||||||
Gain (loss) on derivatives designated as cash flow hedges | 6 | 3 | 10 | 10 | (28 | ) | (21 | ) | ||||||||||||||||
Changes in cash flow hedges reclassified to earnings | — | — | 7 | 7 | — | (1 | ) | |||||||||||||||||
Cash flow hedges, net of reclassification adjustments | 6 | 3 | 17 | 17 | (28 | ) | (22 | ) | ||||||||||||||||
Other comprehensive income (loss) attributable to Eaton | $ | 652 | $ | 404 | $ | (73 | ) | $ | — | $ | (806 | ) | $ | (616 | ) | |||||||||
ordinary shareholders | ||||||||||||||||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | ' | |||||||||||||||||||||||
The changes in Accumulated other comprehensive (loss) income follow: | ||||||||||||||||||||||||
Currency translation and related hedging instruments | Pensions and other postretirement benefits | Cash flow | Total | |||||||||||||||||||||
hedges | ||||||||||||||||||||||||
Balance at December 31, 2012 | $ | (367 | ) | $ | (1,599 | ) | $ | 2 | $ | (1,964 | ) | |||||||||||||
Other comprehensive (loss) income | (28 | ) | 285 | 3 | 260 | |||||||||||||||||||
before reclassifications | ||||||||||||||||||||||||
Amounts reclassified from Accumulated other | — | 144 | — | 144 | ||||||||||||||||||||
comprehensive (loss) income | ||||||||||||||||||||||||
Net current-period other comprehensive | (28 | ) | 429 | 3 | 404 | |||||||||||||||||||
(loss) income | ||||||||||||||||||||||||
Balance at December 31, 2013 | $ | (395 | ) | $ | (1,170 | ) | $ | 5 | $ | (1,560 | ) | |||||||||||||
Reclassification out of Accumulated Other Comprehensive Income [Table Text Block] | ' | |||||||||||||||||||||||
The reclassifications out of Accumulated other comprehensive (loss) income follow: | ||||||||||||||||||||||||
31-Dec-13 | Consolidated Statements of | |||||||||||||||||||||||
Income classification | ||||||||||||||||||||||||
Amortization of defined benefit pension items | ||||||||||||||||||||||||
Actuarial loss | $ | (229 | ) | 1 | ||||||||||||||||||||
(229 | ) | |||||||||||||||||||||||
Tax benefit | 85 | |||||||||||||||||||||||
Total, net of tax | (144 | ) | ||||||||||||||||||||||
Gains and losses on cash flow hedges | ||||||||||||||||||||||||
Floating-to-fixed interest rate swaps | (1 | ) | Interest expense - net | |||||||||||||||||||||
Currency exchange contracts | 2 | Cost of products sold | ||||||||||||||||||||||
Commodity contracts | (1 | ) | Cost of products sold | |||||||||||||||||||||
— | ||||||||||||||||||||||||
Tax expense | — | |||||||||||||||||||||||
Total, net of tax | — | |||||||||||||||||||||||
Total reclassifications for the period | $ | (144 | ) | |||||||||||||||||||||
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | ' | |||||||||||||||||||||||
A summary of the calculation of net income per ordinary share attributable to ordinary shareholders follows: | ||||||||||||||||||||||||
(Shares in millions) | 2013 | 2012 | 2011 | |||||||||||||||||||||
Net income attributable to Eaton ordinary shareholders | $ | 1,861 | $ | 1,217 | $ | 1,350 | ||||||||||||||||||
Weighted-average number of ordinary shares outstanding - diluted | 476.7 | 350.9 | 342.8 | |||||||||||||||||||||
Less dilutive effect of equity-based compensation | 3.2 | 3.1 | 4.5 | |||||||||||||||||||||
Weighted-average number of ordinary shares outstanding - basic | 473.5 | 347.8 | 338.3 | |||||||||||||||||||||
Net income per ordinary share | ||||||||||||||||||||||||
Diluted | $ | 3.9 | $ | 3.46 | $ | 3.93 | ||||||||||||||||||
Basic | 3.93 | 3.54 | 3.98 | |||||||||||||||||||||
EquityBased_Compensation_Equit
Equity-Based Compensation Equity-Based Compensation (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Equity-based compensation | ' | ||||||||||||
Summary of RSU and RSA activity | ' | ||||||||||||
A summary of the RSU and RSA activity for 2013 follows: | |||||||||||||
(Restricted stock units and awards in millions) | Number of restricted | Weighted-average fair | |||||||||||
stock units and awards | value per unit and award | ||||||||||||
Non-vested at January 1 | 3.4 | $ | 42.47 | ||||||||||
Granted | 1.5 | 57.75 | |||||||||||
Vested | (1.3 | ) | 37.71 | ||||||||||
Forfeited | (0.2 | ) | 50.7 | ||||||||||
Non-vested at December 31 | 3.4 | $ | 51.37 | ||||||||||
Pre-tax and after-tax expense for RSUs and RSAs [Table Text Block] | ' | ||||||||||||
Information related to RSUs and RSAs follows: | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Pretax expense for RSUs and RSAs | $ | 69 | $ | 46 | $ | 50 | |||||||
After-tax expense for RSUs and RSAs | 45 | 30 | 32 | ||||||||||
Assumptions used in determining fair value of stock options | ' | ||||||||||||
A summary of the assumptions used in determining the fair value of stock options follows: | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Expected volatility | 36 | % | 35 | % | 33 | % | |||||||
Expected option life in years | 5.5 | 5.5 | 5.5 | ||||||||||
Expected dividend yield | 2 | % | 2 | % | 2 | % | |||||||
Risk-free interest rate | 1.5 to 0.8% | 1.0 to 0.9% | 2.2% to 1.4% | ||||||||||
Weighted-average fair value of stock options granted | $ | 17.49 | $ | 14.08 | $ | 14.56 | |||||||
Summary of stock option activity | ' | ||||||||||||
A summary of stock option activity follows: | |||||||||||||
(Options in millions) | Weighted-average | Options | Weighted-average | Aggregate | |||||||||
price per option | remaining | intrinsic | |||||||||||
contractual life | value | ||||||||||||
in years | |||||||||||||
Outstanding at January 1, 2013 | $ | 39.45 | 10.8 | ||||||||||
Granted | 63.15 | 0.8 | |||||||||||
Exercised | 35.76 | (3.6 | ) | ||||||||||
Forfeited and canceled | 50.76 | (0.1 | ) | ||||||||||
Outstanding at December 31, 2013 | $ | 43.43 | 7.9 | 4.4 | $ | 259 | |||||||
Exercisable at December 31, 2013 | $ | 40.05 | 6.4 | 3.4 | $ | 232 | |||||||
Reserved for future grants at December 31, 2013 | 17.7 | ||||||||||||
Information related to stock options | ' | ||||||||||||
Information related to stock options follows: | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Pretax expense for stock options | $ | 11 | $ | 7 | $ | 5 | |||||||
After-tax expense for stock options | 7 | 5 | 4 | ||||||||||
Proceeds from stock options exercised | 121 | 95 | 71 | ||||||||||
Income tax benefit related to stock options exercised | |||||||||||||
Tax benefit classified in operating activities in the Consolidated | 3 | 5 | 13 | ||||||||||
Statements of Cash Flows | |||||||||||||
Excess tax benefit classified in financing activities in the | 22 | 13 | 33 | ||||||||||
Consolidated Statements of Cash Flows | |||||||||||||
Intrinsic value of stock options exercised | 102 | 60 | 62 | ||||||||||
Total fair value of stock options vesting | $ | 11 | $ | 7 | $ | 5 | |||||||
Stock options exercised, in millions of options | 3.565 | 3.099 | 2.541 | ||||||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Fair Value Measurements (Tables) [Abstract] | ' | |||||||||||||||
Summary of financial instruments recognized at fair value and fair value measurement used | ' | |||||||||||||||
A summary of financial instruments recognized at fair value, and the fair value measurements used, follows: | ||||||||||||||||
Total | Quoted prices | Other | Unobservable | |||||||||||||
in active | observable | inputs | ||||||||||||||
markets for | inputs | (Level 3) | ||||||||||||||
identical assets | (Level 2) | |||||||||||||||
(Level 1) | ||||||||||||||||
2013 | ||||||||||||||||
Cash | $ | 915 | $ | 915 | $ | — | $ | — | ||||||||
Short-term investments | 794 | 794 | — | — | ||||||||||||
Net derivative contracts | (35 | ) | — | (35 | ) | — | ||||||||||
Long-term debt converted to floating interest rates by | (39 | ) | — | (39 | ) | — | ||||||||||
interest rate swaps - net | ||||||||||||||||
2012 | ||||||||||||||||
Cash | $ | 577 | $ | 577 | $ | — | $ | — | ||||||||
Short-term investments | 527 | 527 | — | — | ||||||||||||
Net derivative contracts | 83 | — | 83 | — | ||||||||||||
Long-term debt converted to floating interest rates by | 87 | — | 87 | — | ||||||||||||
interest rate swaps - net | ||||||||||||||||
Summary of carrying value of short-term investments | ' | |||||||||||||||
A summary of the carrying value of short-term investments follows: | ||||||||||||||||
2013 | 2012 | |||||||||||||||
Time deposits, certificate of deposits and demand deposits with banks | $ | 279 | $ | 293 | ||||||||||||
Money market investments | 512 | 228 | ||||||||||||||
Other | 3 | 6 | ||||||||||||||
Total short-term investments | $ | 794 | $ | 527 | ||||||||||||
Derivative_Financial_Instrumen1
Derivative Financial Instruments and Hedging Activities (Tables) | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | |||||||||||||||||||||||
Summary of interest rate swaps | ' | |||||||||||||||||||||||
Notional amount | Fixed interest | Floating interest | Basis for contracted floating interest rate paid | |||||||||||||||||||||
rate received | rate paid | |||||||||||||||||||||||
$ | 100 | 5.95% | 2.98% | 6 month LIBOR + 2.60% | ||||||||||||||||||||
150 | 5.30% | 4.43% | 1 month LIBOR + 4.26% | |||||||||||||||||||||
450 | 1.50% | 0.62% | 1 month LIBOR + 0.45% | |||||||||||||||||||||
415 | 5.60% | 3.54% | 6 month LIBOR + 3.18% | |||||||||||||||||||||
300 | 6.95% | 5.32% | 3 month LIBOR + 5.07% | |||||||||||||||||||||
25 | 8.88% | 4.26% | 6 month LIBOR + 3.84% | |||||||||||||||||||||
150 | 3.88% | 2.29% | 1 month LIBOR + 2.12% | |||||||||||||||||||||
150 | 3.47% | 2.01% | 1 month LIBOR + 1.84% | |||||||||||||||||||||
1,100 | 2.75% | 0.71% | 1 month LIBOR + 0.54% | |||||||||||||||||||||
150 | 3.68% | 1.22% | 1 month LIBOR + 1.06% | |||||||||||||||||||||
25 | 7.63% | 2.84% | 6 month LIBOR + 2.48% | |||||||||||||||||||||
50 | 7.65% | 2.92% | 6 month LIBOR + 2.57% | |||||||||||||||||||||
25 | 5.45% | 0.64% | 6 month LIBOR + 0.28% | |||||||||||||||||||||
Floating to fixed interest rate swaps | ' | |||||||||||||||||||||||
Notional amount | Floating interest | Fixed interest | Basis for contracted floating interest rate received | |||||||||||||||||||||
rate received | rate paid | |||||||||||||||||||||||
$ | 300 | 0.24% | 0.76% | 3 month LIBOR | ||||||||||||||||||||
Fair value of derivative financial instruments recognized in the Consolidated Balance Sheet | ' | |||||||||||||||||||||||
The fair value of derivative financial instruments recognized in the Consolidated Balance Sheets follows: | ||||||||||||||||||||||||
Notional | Other | Other | Other | Other | Type of | Term | ||||||||||||||||||
amount | current | long-term | current | long-term | hedge | |||||||||||||||||||
assets | assets | liabilities | liabilities | |||||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||
Derivatives designated as hedges | ||||||||||||||||||||||||
Fixed-to-floating interest rate swaps | $ | 3,090 | $ | 1 | $ | 36 | $ | — | $ | 76 | Fair value | 3 months | ||||||||||||
to 20 years | ||||||||||||||||||||||||
Floating-to-fixed interest rate swaps | 300 | — | — | 1 | — | Cash flow | 6 months | |||||||||||||||||
Currency exchange contracts | 393 | 12 | — | 3 | — | Cash flow | 12 to 36 months | |||||||||||||||||
Commodity contracts | 1 | — | — | — | — | Cash flow | 12 months | |||||||||||||||||
Total | $ | 13 | $ | 36 | $ | 4 | $ | 76 | ||||||||||||||||
Derivatives not designated as hedges | ||||||||||||||||||||||||
Currency exchange contracts | $ | 4,277 | $ | 22 | $ | 26 | 12 months | |||||||||||||||||
Total | $ | 22 | $ | 26 | ||||||||||||||||||||
December 31, 2012 | ||||||||||||||||||||||||
Derivatives designated as hedges | ||||||||||||||||||||||||
Fixed-to-floating interest rate swaps | $ | 1,290 | $ | 2 | $ | 85 | $ | — | $ | — | Fair value | 6 months | ||||||||||||
to 21 years | ||||||||||||||||||||||||
Floating-to-fixed interest rate swaps | 300 | — | — | — | 2 | Cash flow | 1 year | |||||||||||||||||
Currency exchange contracts | 451 | 9 | — | 4 | — | Cash flow | 12 to 36 months | |||||||||||||||||
Commodity contracts | 17 | — | — | — | — | Cash flow | 12 months | |||||||||||||||||
Total | $ | 11 | $ | 85 | $ | 4 | $ | 2 | ||||||||||||||||
Derivatives not designated as hedges | ||||||||||||||||||||||||
Currency exchange contracts | $ | 4,997 | $ | 23 | $ | 31 | 12 months | |||||||||||||||||
Commodity contracts | 19 | 1 | — | 12 months | ||||||||||||||||||||
Total | $ | 24 | $ | 31 | ||||||||||||||||||||
Amounts recognized in Accumulated other comprehensive income (loss) | ' | |||||||||||||||||||||||
Amounts recognized in Accumulated other comprehensive loss follow: | ||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||
Gain (loss) | Gain (loss) | Gain (loss) | Gain (loss) | |||||||||||||||||||||
recognized in | reclassified | recognized in | reclassified | |||||||||||||||||||||
Accumulated | from | Accumulated | from | |||||||||||||||||||||
other | Accumulated | other | Accumulated | |||||||||||||||||||||
comprehensive | other | comprehensive | other | |||||||||||||||||||||
loss | comprehensive | loss | comprehensive | |||||||||||||||||||||
loss | loss | |||||||||||||||||||||||
Derivatives designated as cash flow hedges | ||||||||||||||||||||||||
Floating-to-fixed interest rate swaps | $ | — | $ | (1 | ) | $ | (3 | ) | $ | (1 | ) | |||||||||||||
Currency exchange contracts | 6 | 2 | 12 | 1 | ||||||||||||||||||||
Commodity contracts | — | (1 | ) | 1 | (7 | ) | ||||||||||||||||||
Total | $ | 6 | $ | — | $ | 10 | $ | (7 | ) | |||||||||||||||
Amounts recognized in net income | ' | |||||||||||||||||||||||
Amounts recognized in net income follow: | ||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||
Derivatives designated as fair value hedges | ||||||||||||||||||||||||
Fixed-to-floating interest rate swaps | $ | (126 | ) | $ | 21 | |||||||||||||||||||
Related long-term debt converted to floating interest | 126 | (21 | ) | |||||||||||||||||||||
rates by interest rate swaps | ||||||||||||||||||||||||
$ | — | $ | — | |||||||||||||||||||||
Accounts_Receivable_and_Invent1
Accounts Receivable and Inventory (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Accounts Receivable and Inventory [Abstract] | ' | |||||||
Components of inventory | ' | |||||||
The components of inventory follow: | ||||||||
2013 | 2012 | |||||||
Raw materials | $ | 955 | $ | 915 | ||||
Work-in-process | 428 | 423 | ||||||
Finished goods | 1,115 | 1,131 | ||||||
Inventory at FIFO | 2,498 | 2,469 | ||||||
Excess of FIFO over LIFO cost | (116 | ) | (133 | ) | ||||
Total inventory | $ | 2,382 | $ | 2,336 | ||||
Business_Segment_and_Geographi1
Business Segment and Geographic Region Information (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||
Business Segment Information - Net sales, Segment operating profit (loss), and Corporate | ' | |||||||||||
2013 | 2012 | 2011 | ||||||||||
Net sales | ||||||||||||
Electrical Products | $ | 7,026 | $ | 3,846 | $ | 3,619 | ||||||
Electrical Systems and Services | 6,430 | 3,872 | 3,557 | |||||||||
Hydraulics | 2,981 | 2,960 | 2,835 | |||||||||
Aerospace | 1,774 | 1,719 | 1,648 | |||||||||
Vehicle | 3,835 | 3,914 | 4,390 | |||||||||
Total net sales | $ | 22,046 | $ | 16,311 | $ | 16,049 | ||||||
Segment operating profit | ||||||||||||
Electrical Products | $ | 1,090 | $ | 640 | $ | 531 | ||||||
Electrical Systems and Services | 889 | 424 | 352 | |||||||||
Hydraulics | 355 | 369 | 438 | |||||||||
Aerospace | 252 | 213 | 244 | |||||||||
Vehicle | 592 | 570 | 695 | |||||||||
Total segment operating profit | 3,178 | 2,216 | 2,260 | |||||||||
Corporate | ||||||||||||
Amortization of intangible assets | (437 | ) | (195 | ) | (190 | ) | ||||||
Interest expense - net | (271 | ) | (208 | ) | (118 | ) | ||||||
Pension and other postretirement benefits expense | (183 | ) | (162 | ) | (142 | ) | ||||||
Inventory step-up adjustment | (34 | ) | (42 | ) | (5 | ) | ||||||
Other corporate expense - net | (369 | ) | (358 | ) | (252 | ) | ||||||
Income before income taxes | 1,884 | 1,251 | 1,553 | |||||||||
Income tax expense | 11 | 31 | 201 | |||||||||
Net income | 1,873 | 1,220 | 1,352 | |||||||||
Less net income for noncontrolling interests | (12 | ) | (3 | ) | (2 | ) | ||||||
Net income attributable to Eaton ordinary shareholders | $ | 1,861 | $ | 1,217 | $ | 1,350 | ||||||
Business Segment Information - Acquisition integration charges | ' | |||||||||||
Business segment operating profit was reduced by acquisition integration charges as follows: | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Electrical Products | $ | 44 | $ | 4 | $ | 1 | ||||||
Electrical Systems and Services | 37 | 13 | 9 | |||||||||
Hydraulics | 36 | 16 | 4 | |||||||||
Total | $ | 117 | $ | 33 | $ | 14 | ||||||
Business Segment Information - Identifiable assets, Capital expenditures for property, plant, and equipment, and Depreciation of property, plant, and equipment | ' | |||||||||||
2013 | 2012 | 2011 | ||||||||||
Identifiable assets | ||||||||||||
Electrical Products | $ | 3,204 | $ | 3,338 | $ | 1,653 | ||||||
Electrical Systems and Services | 2,683 | 2,408 | 1,242 | |||||||||
Hydraulics | 1,362 | 1,426 | 1,265 | |||||||||
Aerospace | 852 | 806 | 754 | |||||||||
Vehicle | 1,716 | 1,698 | 1,783 | |||||||||
Total identifiable assets | 9,817 | 9,676 | 6,697 | |||||||||
Goodwill | 14,495 | 14,443 | 5,537 | |||||||||
Other intangible assets | 7,186 | 7,580 | 2,192 | |||||||||
Corporate | 3,993 | 4,111 | 3,447 | |||||||||
Total assets | $ | 35,491 | $ | 35,810 | $ | 17,873 | ||||||
Capital expenditures for property, plant and equipment | ||||||||||||
Electrical Products | $ | 152 | $ | 108 | $ | 76 | ||||||
Electrical Systems and Services | 113 | 47 | 41 | |||||||||
Hydraulics | 80 | 60 | 70 | |||||||||
Aerospace | 29 | 27 | 21 | |||||||||
Vehicle | 161 | 148 | 172 | |||||||||
Total | 535 | 390 | 380 | |||||||||
Corporate | 79 | 203 | 188 | |||||||||
Total expenditures for property, plant and equipment | $ | 614 | $ | 593 | $ | 568 | ||||||
Depreciation of property, plant and equipment | ||||||||||||
Electrical Products | $ | 151 | $ | 78 | $ | 74 | ||||||
Electrical Systems and Services | 86 | 42 | 37 | |||||||||
Hydraulics | 65 | 61 | 54 | |||||||||
Aerospace | 27 | 26 | 26 | |||||||||
Vehicle | 133 | 136 | 147 | |||||||||
Total | 462 | 343 | 338 | |||||||||
Corporate | 54 | 38 | 29 | |||||||||
Total depreciation of property, plant and equipment | $ | 516 | $ | 381 | $ | 367 | ||||||
Geographic Region Information - Net sales and long-lived assets | ' | |||||||||||
Net sales are measured based on the geographic destination of sales. Long-lived assets consist of property, plant and equipment - net. | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Net sales | ||||||||||||
United States | $ | 11,092 | $ | 7,789 | $ | 7,165 | ||||||
Canada | 1,154 | 918 | 815 | |||||||||
Latin America | 2,113 | 1,588 | 1,952 | |||||||||
Europe | 5,112 | 3,997 | 4,092 | |||||||||
Asia Pacific | 2,575 | 2,019 | 2,025 | |||||||||
Total | $ | 22,046 | $ | 16,311 | $ | 16,049 | ||||||
Long-lived assets | ||||||||||||
United States | $ | 1,966 | $ | 1,914 | $ | 1,227 | ||||||
Canada | 28 | 33 | 27 | |||||||||
Latin America | 331 | 346 | 247 | |||||||||
Europe | 856 | 845 | 649 | |||||||||
Asia Pacific | 652 | 648 | 452 | |||||||||
Total | $ | 3,833 | $ | 3,786 | $ | 2,602 | ||||||
Condensed_Consolidating_Financ1
Condensed Consolidating Financial Statements Condensed Consolidating Financial Statements (Tables) | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||
Condensed Consolidating Financial Statements, Captions [Line Items] | ' | |||||||||||||||||||||||
Condensed Consolidating Financial Statements [Table Text Block] | ' | |||||||||||||||||||||||
For periods prior to 2012, Eaton Corporation is presented as the parent company. | ||||||||||||||||||||||||
CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME | ||||||||||||||||||||||||
YEAR ENDED DECEMBER 31, 2013 | ||||||||||||||||||||||||
Eaton | Eaton | Guarantors | Other | Consolidating | Total | |||||||||||||||||||
Corporation | Corporation | subsidiaries | adjustments | |||||||||||||||||||||
plc | ||||||||||||||||||||||||
Net sales | $ | — | $ | 6,695 | $ | 6,421 | $ | 13,579 | $ | (4,649 | ) | $ | 22,046 | |||||||||||
Cost of products sold | — | 5,227 | 4,784 | 10,010 | (4,652 | ) | 15,369 | |||||||||||||||||
Selling and administrative expense | 32 | 1,400 | 749 | 1,705 | — | 3,886 | ||||||||||||||||||
Research and development expense | — | 255 | 200 | 189 | — | 644 | ||||||||||||||||||
Interest expense (income) - net | — | 271 | 28 | (22 | ) | (6 | ) | 271 | ||||||||||||||||
Other expense (income) - net | — | 8 | 4 | (20 | ) | — | (8 | ) | ||||||||||||||||
Equity in (earnings) loss of | (2,147 | ) | (1,156 | ) | (1,214 | ) | (813 | ) | 5,330 | — | ||||||||||||||
subsidiaries, net of tax | ||||||||||||||||||||||||
Intercompany expense | 254 | (155 | ) | (479 | ) | 380 | — | — | ||||||||||||||||
(income) - net | ||||||||||||||||||||||||
Income before income taxes | 1,861 | 845 | 2,349 | 2,150 | (5,321 | ) | 1,884 | |||||||||||||||||
Income tax (benefit) expense | — | (108 | ) | (90 | ) | 207 | 2 | 11 | ||||||||||||||||
Net income | 1,861 | 953 | 2,439 | 1,943 | (5,323 | ) | 1,873 | |||||||||||||||||
Less net income for | — | — | — | (9 | ) | (3 | ) | (12 | ) | |||||||||||||||
noncontrolling interests | ||||||||||||||||||||||||
Net income attributable to | $ | 1,861 | $ | 953 | $ | 2,439 | $ | 1,934 | $ | (5,326 | ) | $ | 1,861 | |||||||||||
Eaton ordinary shareholders | ||||||||||||||||||||||||
Other comprehensive income | $ | 404 | $ | 300 | $ | 481 | $ | 363 | $ | (1,144 | ) | $ | 404 | |||||||||||
Total comprehensive income | $ | 2,265 | $ | 1,253 | $ | 2,920 | $ | 2,297 | $ | (6,470 | ) | $ | 2,265 | |||||||||||
attributable to Eaton ordinary | ||||||||||||||||||||||||
shareholders | ||||||||||||||||||||||||
CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME | ||||||||||||||||||||||||
YEAR ENDED DECEMBER 31, 2012 | ||||||||||||||||||||||||
Eaton Corporation plc | Eaton | Guarantors | Other | Consolidating | Total | |||||||||||||||||||
Corporation | subsidiaries | adjustments | ||||||||||||||||||||||
Net sales | $ | — | $ | 6,680 | $ | 2,849 | $ | 10,346 | $ | (3,564 | ) | $ | 16,311 | |||||||||||
Cost of products sold | — | 5,115 | 2,193 | 7,708 | (3,568 | ) | 11,448 | |||||||||||||||||
Selling and administrative expense | — | 1,307 | 335 | 1,252 | — | 2,894 | ||||||||||||||||||
Research and development expense | — | 230 | 108 | 101 | — | 439 | ||||||||||||||||||
Interest expense (income) - net | — | 229 | 8 | (29 | ) | — | 208 | |||||||||||||||||
Other expense - net | — | 10 | 48 | 13 | — | 71 | ||||||||||||||||||
Equity in (earnings) loss of | (1,219 | ) | (732 | ) | (1,337 | ) | (611 | ) | 3,899 | — | ||||||||||||||
subsidiaries, net of tax | ||||||||||||||||||||||||
Intercompany expense (income) - net | 2 | (237 | ) | 42 | 193 | — | — | |||||||||||||||||
Income before income taxes | 1,217 | 758 | 1,452 | 1,719 | (3,895 | ) | 1,251 | |||||||||||||||||
Income tax expense | — | 24 | — | 6 | 1 | 31 | ||||||||||||||||||
Net income | 1,217 | 734 | 1,452 | 1,713 | (3,896 | ) | 1,220 | |||||||||||||||||
Less net income for | — | — | — | (3 | ) | — | (3 | ) | ||||||||||||||||
noncontrolling interests | ||||||||||||||||||||||||
Net income attributable to | $ | 1,217 | $ | 734 | $ | 1,452 | $ | 1,710 | $ | (3,896 | ) | $ | 1,217 | |||||||||||
Eaton ordinary shareholders | ||||||||||||||||||||||||
Other comprehensive income (loss) | $ | — | $ | 290 | $ | (1,976 | ) | $ | (1,621 | ) | $ | 3,307 | $ | — | ||||||||||
Total comprehensive income | $ | 1,217 | $ | 1,024 | $ | (524 | ) | $ | 89 | $ | (589 | ) | $ | 1,217 | ||||||||||
(loss) attributable to | ||||||||||||||||||||||||
Eaton ordinary shareholders | ||||||||||||||||||||||||
CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME | ||||||||||||||||||||||||
YEAR ENDED DECEMBER 31, 2011 | ||||||||||||||||||||||||
Eaton | Guarantors | Other | Consolidating | Total | ||||||||||||||||||||
Corporation | subsidiaries | adjustments | ||||||||||||||||||||||
Net sales | $ | 6,294 | $ | 2,642 | $ | 10,520 | $ | (3,407 | ) | $ | 16,049 | |||||||||||||
Cost of products sold | 4,865 | 1,975 | 7,822 | (3,401 | ) | 11,261 | ||||||||||||||||||
Selling and administrative expense | 1,201 | 295 | 1,242 | — | 2,738 | |||||||||||||||||||
Research and development expense | 207 | 112 | 98 | — | 417 | |||||||||||||||||||
Interest expense (income) - net | 144 | 8 | (34 | ) | — | 118 | ||||||||||||||||||
Other income - net | (18 | ) | (2 | ) | (18 | ) | — | (38 | ) | |||||||||||||||
Equity in (earnings) loss of subsidiaries, net of tax | (1,271 | ) | (61 | ) | — | 1,332 | — | |||||||||||||||||
Intercompany (income) expense - net | (224 | ) | (13 | ) | 237 | — | — | |||||||||||||||||
Income before income taxes | 1,390 | 328 | 1,173 | (1,338 | ) | 1,553 | ||||||||||||||||||
Income tax expense | 40 | 89 | 74 | (2 | ) | 201 | ||||||||||||||||||
Net income | 1,350 | 239 | 1,099 | (1,336 | ) | 1,352 | ||||||||||||||||||
Less net income for noncontrolling interests | — | — | (1 | ) | (1 | ) | (2 | ) | ||||||||||||||||
Net income attributable to | $ | 1,350 | $ | 239 | $ | 1,098 | $ | (1,337 | ) | $ | 1,350 | |||||||||||||
Eaton ordinary shareholders | ||||||||||||||||||||||||
Other comprehensive loss | $ | (616 | ) | $ | (64 | ) | $ | (302 | ) | $ | 366 | $ | (616 | ) | ||||||||||
Total comprehensive income attributable | $ | 734 | $ | 175 | $ | 796 | $ | (971 | ) | $ | 734 | |||||||||||||
to Eaton ordinary shareholders | ||||||||||||||||||||||||
CONDENSED CONSOLIDATING BALANCE SHEETS | ||||||||||||||||||||||||
31-Dec-13 | ||||||||||||||||||||||||
Eaton | Eaton | Guarantors | Other | Consolidating | Total | |||||||||||||||||||
Corporation | Corporation | subsidiaries | adjustments | |||||||||||||||||||||
plc | ||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||
Current assets | ||||||||||||||||||||||||
Cash | $ | 3 | $ | 51 | $ | 10 | $ | 851 | $ | — | $ | 915 | ||||||||||||
Short-term investments | — | — | 134 | 660 | — | 794 | ||||||||||||||||||
Accounts receivable - net | — | 473 | 922 | 2,253 | — | 3,648 | ||||||||||||||||||
Intercompany accounts receivable | 5 | 471 | 3,368 | 4,470 | (8,314 | ) | — | |||||||||||||||||
Inventory | — | 344 | 609 | 1,466 | (37 | ) | 2,382 | |||||||||||||||||
Prepaid expenses and other | — | 458 | 175 | 350 | 9 | 992 | ||||||||||||||||||
current assets | ||||||||||||||||||||||||
Total current assets | 8 | 1,797 | 5,218 | 10,050 | (8,342 | ) | 8,731 | |||||||||||||||||
Property, plant and equipment - net | — | 982 | 761 | 2,090 | — | 3,833 | ||||||||||||||||||
Other noncurrent assets | ||||||||||||||||||||||||
Goodwill | — | 1,382 | 6,350 | 6,763 | — | 14,495 | ||||||||||||||||||
Other intangible assets | — | 211 | 3,996 | 2,979 | — | 7,186 | ||||||||||||||||||
Deferred income taxes | — | 839 | 3 | 145 | (747 | ) | 240 | |||||||||||||||||
Investment in subsidiaries | 24,940 | 8,853 | 40,776 | 8,473 | (83,042 | ) | — | |||||||||||||||||
Intercompany loans receivable | — | 8,019 | 2,518 | 18,776 | (29,313 | ) | — | |||||||||||||||||
Other assets | — | 450 | 186 | 370 | — | 1,006 | ||||||||||||||||||
Total assets | $ | 24,948 | $ | 22,533 | $ | 59,808 | $ | 49,646 | $ | (121,444 | ) | $ | 35,491 | |||||||||||
Liabilities and shareholders’ | ||||||||||||||||||||||||
equity | ||||||||||||||||||||||||
Current liabilities | ||||||||||||||||||||||||
Short-term debt | $ | — | $ | — | $ | — | $ | 13 | $ | — | $ | 13 | ||||||||||||
Current portion of long-term debt | — | 552 | — | 15 | — | 567 | ||||||||||||||||||
Accounts payable | — | 440 | 380 | 1,140 | — | 1,960 | ||||||||||||||||||
Intercompany accounts payable | 4 | 3,751 | 3,288 | 1,271 | (8,314 | ) | — | |||||||||||||||||
Accrued compensation | — | 140 | 37 | 284 | — | 461 | ||||||||||||||||||
Other current liabilities | 5 | 547 | 400 | 965 | (4 | ) | 1,913 | |||||||||||||||||
Total current liabilities | 9 | 5,430 | 4,105 | 3,688 | (8,318 | ) | 4,914 | |||||||||||||||||
Noncurrent liabilities | ||||||||||||||||||||||||
Long-term debt | — | 7,693 | 1,266 | 16 | (6 | ) | 8,969 | |||||||||||||||||
Pension liabilities | — | 546 | 131 | 788 | — | 1,465 | ||||||||||||||||||
Other postretirement benefits | — | 402 | 171 | 95 | — | 668 | ||||||||||||||||||
liabilities | ||||||||||||||||||||||||
Deferred income taxes | — | — | 1,303 | 757 | (747 | ) | 1,313 | |||||||||||||||||
Intercompany loans payable | 8,148 | 2,113 | 18,207 | 845 | (29,313 | ) | — | |||||||||||||||||
Other noncurrent liabilities | — | 652 | 162 | 485 | — | 1,299 | ||||||||||||||||||
Total noncurrent liabilities | 8,148 | 11,406 | 21,240 | 2,986 | (30,066 | ) | 13,714 | |||||||||||||||||
Shareholders’ equity | ||||||||||||||||||||||||
Eaton shareholders' equity | 16,791 | 5,697 | 34,463 | 42,906 | (83,066 | ) | 16,791 | |||||||||||||||||
Noncontrolling interests | — | — | — | 66 | 6 | 72 | ||||||||||||||||||
Total equity | 16,791 | 5,697 | 34,463 | 42,972 | (83,060 | ) | 16,863 | |||||||||||||||||
Total liabilities and equity | $ | 24,948 | $ | 22,533 | $ | 59,808 | $ | 49,646 | $ | (121,444 | ) | $ | 35,491 | |||||||||||
CONDENSED CONSOLIDATING BALANCE SHEETS | ||||||||||||||||||||||||
31-Dec-12 | ||||||||||||||||||||||||
Eaton | Eaton | Guarantors | Other | Consolidating | Total | |||||||||||||||||||
Corporation | Corporation | subsidiaries | adjustments | |||||||||||||||||||||
plc | ||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||
Current assets | ||||||||||||||||||||||||
Cash | $ | 7 | $ | 54 | $ | 14 | $ | 502 | $ | — | $ | 577 | ||||||||||||
Short-term investments | — | 25 | 38 | 464 | — | 527 | ||||||||||||||||||
Accounts receivable - net | — | 654 | 393 | 2,427 | — | 3,474 | ||||||||||||||||||
Intercompany accounts receivable | 38 | 335 | 4,683 | 3,887 | (8,943 | ) | — | |||||||||||||||||
Inventory | — | 341 | 602 | 1,432 | (39 | ) | 2,336 | |||||||||||||||||
Prepaid expenses and other | — | 391 | 245 | 341 | 9 | 986 | ||||||||||||||||||
current assets | ||||||||||||||||||||||||
Total current assets | 45 | 1,800 | 5,975 | 9,053 | (8,973 | ) | 7,900 | |||||||||||||||||
Property, plant and equipment - net | — | 934 | 777 | 2,075 | — | 3,786 | ||||||||||||||||||
Other noncurrent assets | ||||||||||||||||||||||||
Goodwill | — | 1,382 | 6,350 | 6,711 | — | 14,443 | ||||||||||||||||||
Other intangible assets | — | 231 | 4,094 | 3,255 | — | 7,580 | ||||||||||||||||||
Deferred income taxes | — | 941 | — | 195 | (783 | ) | 353 | |||||||||||||||||
Investment in subsidiaries | 20,662 | 7,678 | 21,912 | 6,931 | (57,183 | ) | — | |||||||||||||||||
Intercompany loans receivable | — | 7,650 | 13,262 | 14,125 | (35,037 | ) | — | |||||||||||||||||
Other assets | — | 459 | 124 | 1,165 | — | 1,748 | ||||||||||||||||||
Total assets | $ | 20,707 | $ | 21,075 | $ | 52,494 | $ | 43,510 | $ | (101,976 | ) | $ | 35,810 | |||||||||||
Liabilities and shareholders’ | ||||||||||||||||||||||||
equity | ||||||||||||||||||||||||
Current liabilities | ||||||||||||||||||||||||
Short-term debt | $ | — | $ | 753 | $ | — | $ | 4 | $ | — | $ | 757 | ||||||||||||
Current portion of long-term debt | — | 303 | 8 | 3 | — | 314 | ||||||||||||||||||
Accounts payable | — | 424 | 344 | 1,111 | — | 1,879 | ||||||||||||||||||
Intercompany accounts payable | 2 | 2,794 | 3,099 | 3,048 | (8,943 | ) | — | |||||||||||||||||
Accrued compensation | — | 129 | 74 | 259 | — | 462 | ||||||||||||||||||
Other current liabilities | — | 523 | 411 | 1,173 | (4 | ) | 2,103 | |||||||||||||||||
Total current liabilities | 2 | 4,926 | 3,936 | 5,598 | (8,947 | ) | 5,515 | |||||||||||||||||
Noncurrent liabilities | ||||||||||||||||||||||||
Long-term debt | — | 8,398 | 1,331 | 36 | — | 9,765 | ||||||||||||||||||
Pension liabilities | — | 895 | 232 | 876 | — | 2,003 | ||||||||||||||||||
Other postretirement benefits | — | 454 | 189 | 99 | — | 742 | ||||||||||||||||||
liabilities | ||||||||||||||||||||||||
Deferred income taxes | — | — | 1,397 | 934 | (783 | ) | 1,548 | |||||||||||||||||
Intercompany loans payable | 5,592 | 1,401 | 14,857 | 13,187 | (35,037 | ) | — | |||||||||||||||||
Other noncurrent liabilities | — | 440 | 157 | 462 | — | 1,059 | ||||||||||||||||||
Total noncurrent liabilities | 5,592 | 11,588 | 18,163 | 15,594 | (35,820 | ) | 15,117 | |||||||||||||||||
Shareholders’ equity | ||||||||||||||||||||||||
Eaton shareholders' equity | 15,113 | 4,561 | 30,395 | 22,263 | (57,219 | ) | 15,113 | |||||||||||||||||
Noncontrolling interests | — | — | — | 55 | 10 | 65 | ||||||||||||||||||
Total equity | 15,113 | 4,561 | 30,395 | 22,318 | (57,209 | ) | 15,178 | |||||||||||||||||
Total liabilities and equity | $ | 20,707 | $ | 21,075 | $ | 52,494 | $ | 43,510 | $ | (101,976 | ) | $ | 35,810 | |||||||||||
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS | ||||||||||||||||||||||||
31-Dec-13 | ||||||||||||||||||||||||
Eaton | Eaton | Guarantors | Other | Consolidating | Total | |||||||||||||||||||
Corporation | Corporation | subsidiaries | adjustments | |||||||||||||||||||||
plc | ||||||||||||||||||||||||
Net cash provided by | $ | 104 | $ | 739 | $ | 428 | $ | 1,067 | $ | (53 | ) | $ | 2,285 | |||||||||||
operating activities | ||||||||||||||||||||||||
Investing activities | ||||||||||||||||||||||||
Capital expenditures for property, | — | (171 | ) | (119 | ) | (324 | ) | — | (614 | ) | ||||||||||||||
plant and equipment | ||||||||||||||||||||||||
Cash paid for acquisitions of | — | — | — | (9 | ) | — | (9 | ) | ||||||||||||||||
businesses, net of cash acquired | ||||||||||||||||||||||||
Sales (purchases) of short-term | — | 25 | (95 | ) | (218 | ) | — | (288 | ) | |||||||||||||||
investments - net | ||||||||||||||||||||||||
Loans to affiliates | — | (535 | ) | (545 | ) | (6,215 | ) | 7,295 | — | |||||||||||||||
Repayments of loans from affiliates | — | 36 | 626 | 5,795 | (6,457 | ) | — | |||||||||||||||||
Proceeds from the sales | — | — | — | 777 | — | 777 | ||||||||||||||||||
of businesses | ||||||||||||||||||||||||
Other - net | — | (41 | ) | (12 | ) | (15 | ) | — | (68 | ) | ||||||||||||||
Net cash (used in) provided by | — | (686 | ) | (145 | ) | (209 | ) | 838 | (202 | ) | ||||||||||||||
investing activities | ||||||||||||||||||||||||
Financing activities | ||||||||||||||||||||||||
Proceeds from borrowings | — | — | — | 9 | — | 9 | ||||||||||||||||||
Payments on borrowings | — | (1,048 | ) | (43 | ) | (5 | ) | — | (1,096 | ) | ||||||||||||||
Proceeds from borrowings from | — | 2,395 | 4,260 | 640 | (7,295 | ) | — | |||||||||||||||||
affiliates | ||||||||||||||||||||||||
Payments on borrowings from | — | (2,921 | ) | (2,874 | ) | (662 | ) | 6,457 | — | |||||||||||||||
affiliates | ||||||||||||||||||||||||
Other intercompany financing | 688 | 1,365 | (1,630 | ) | (423 | ) | — | — | ||||||||||||||||
activities | ||||||||||||||||||||||||
Cash dividends paid | (796 | ) | — | — | — | — | (796 | ) | ||||||||||||||||
Cash dividends paid to affiliates | — | — | — | (53 | ) | 53 | — | |||||||||||||||||
Exercise of employee stock | — | 121 | — | — | — | 121 | ||||||||||||||||||
options | ||||||||||||||||||||||||
Excess tax benefit from | — | 32 | — | — | — | 32 | ||||||||||||||||||
equity-based compensation | ||||||||||||||||||||||||
Other - net | — | — | — | (6 | ) | — | (6 | ) | ||||||||||||||||
Net cash used in | (108 | ) | (56 | ) | (287 | ) | (500 | ) | (785 | ) | (1,736 | ) | ||||||||||||
financing activities | ||||||||||||||||||||||||
Effect of currency on cash | — | — | — | (9 | ) | — | (9 | ) | ||||||||||||||||
Total (decrease) increase in cash | (4 | ) | (3 | ) | (4 | ) | 349 | — | 338 | |||||||||||||||
Cash at the beginning of the period | 7 | 54 | 14 | 502 | — | 577 | ||||||||||||||||||
Cash at the end of the period | $ | 3 | $ | 51 | $ | 10 | $ | 851 | $ | — | $ | 915 | ||||||||||||
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS | ||||||||||||||||||||||||
31-Dec-12 | ||||||||||||||||||||||||
Eaton | Eaton | Guarantors | Other | Consolidating | Total | |||||||||||||||||||
Corporation | Corporation | subsidiaries | adjustments | |||||||||||||||||||||
plc | ||||||||||||||||||||||||
Net cash (used in) provided by | $ | (35 | ) | $ | 1,012 | $ | 217 | $ | 487 | $ | (17 | ) | $ | 1,664 | ||||||||||
operating activities | ||||||||||||||||||||||||
Investing activities | ||||||||||||||||||||||||
Capital expenditures for property, | — | (291 | ) | (73 | ) | (229 | ) | — | (593 | ) | ||||||||||||||
plant and equipment | ||||||||||||||||||||||||
Cash paid for acquisitions of | (6,542 | ) | — | 11 | (405 | ) | — | (6,936 | ) | |||||||||||||||
businesses, net of cash acquired | ||||||||||||||||||||||||
Sales of short-term investments - net | — | 175 | 210 | 218 | — | 603 | ||||||||||||||||||
Loans to affiliates | — | (6,693 | ) | — | (8,054 | ) | 14,747 | — | ||||||||||||||||
Repayments of loans from affiliates | — | 268 | — | 8,175 | (8,443 | ) | — | |||||||||||||||||
Proceeds from the sales | — | 2 | — | 1 | — | 3 | ||||||||||||||||||
of businesses | ||||||||||||||||||||||||
Other - net | — | (28 | ) | 2 | (23 | ) | — | (49 | ) | |||||||||||||||
Net cash (used in) provided by | (6,542 | ) | (6,567 | ) | 150 | (317 | ) | 6,304 | (6,972 | ) | ||||||||||||||
investing activities | ||||||||||||||||||||||||
Financing activities | ||||||||||||||||||||||||
Proceeds from borrowings | — | 7,156 | — | — | — | 7,156 | ||||||||||||||||||
Payments on borrowings | — | (1,306 | ) | (16 | ) | (2 | ) | — | (1,324 | ) | ||||||||||||||
Payments of financing costs | — | (117 | ) | — | — | — | (117 | ) | ||||||||||||||||
Proceeds from borrowings from | 5 | 8,054 | 6,425 | 263 | (14,747 | ) | — | |||||||||||||||||
affiliates | ||||||||||||||||||||||||
Payments on borrowings from | (5 | ) | (8,175 | ) | — | (263 | ) | 8,443 | — | |||||||||||||||
affiliates | ||||||||||||||||||||||||
Other intercompany financing | 273 | (340 | ) | 67 | — | — | ||||||||||||||||||
activities | ||||||||||||||||||||||||
Cash dividends paid | — | (512 | ) | — | — | — | (512 | ) | ||||||||||||||||
Cash dividends paid to affiliates | — | — | — | (17 | ) | 17 | — | |||||||||||||||||
Exercise of employee stock options | — | 95 | — | — | — | 95 | ||||||||||||||||||
Issuance (repurchase) of shares | 6,584 | — | (6,425 | ) | — | — | 159 | |||||||||||||||||
Excess tax benefit from equity-based | — | 21 | — | — | — | 21 | ||||||||||||||||||
compensation | ||||||||||||||||||||||||
Other - net | — | — | — | 2 | — | 2 | ||||||||||||||||||
Net cash provided by (used in) | 6,584 | 5,489 | (356 | ) | 50 | (6,287 | ) | 5,480 | ||||||||||||||||
financing activities | ||||||||||||||||||||||||
Effect of currency on cash | — | — | — | 20 | — | 20 | ||||||||||||||||||
Total increase (decrease) in cash | 7 | (66 | ) | 11 | 240 | — | 192 | |||||||||||||||||
Cash at the beginning of the period | — | 120 | 3 | 262 | — | 385 | ||||||||||||||||||
Cash at the end of the period | $ | 7 | $ | 54 | $ | 14 | $ | 502 | $ | — | $ | 577 | ||||||||||||
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS | ||||||||||||||||||||||||
31-Dec-11 | ||||||||||||||||||||||||
Eaton | Guarantors | Other | Consolidating | Total | ||||||||||||||||||||
Corporation | subsidiaries | adjustments | ||||||||||||||||||||||
Net cash provided by operating activities | $ | 613 | $ | 171 | $ | 1,017 | $ | (553 | ) | $ | 1,248 | |||||||||||||
Investing activities | ||||||||||||||||||||||||
Capital expenditures for property, | (249 | ) | (39 | ) | (280 | ) | — | (568 | ) | |||||||||||||||
plant and equipment | ||||||||||||||||||||||||
Cash paid for acquisitions of | (24 | ) | (2 | ) | (299 | ) | — | (325 | ) | |||||||||||||||
businesses, net of cash acquired | ||||||||||||||||||||||||
Sales of short-term investments - net | 27 | — | 76 | — | 103 | |||||||||||||||||||
Loans to affiliates | (149 | ) | — | (5,855 | ) | 6,004 | — | |||||||||||||||||
Repayments of loans from affiliates | 100 | — | 5,650 | (5,750 | ) | — | ||||||||||||||||||
Proceeds from the sales of businesses | 1 | 14 | — | — | 15 | |||||||||||||||||||
Other - net | (24 | ) | (9 | ) | 8 | — | (25 | ) | ||||||||||||||||
Net cash used in investing activities | (318 | ) | (36 | ) | (700 | ) | 254 | (800 | ) | |||||||||||||||
Financing activities | ||||||||||||||||||||||||
Proceeds from borrowings | 379 | — | 2 | — | 381 | |||||||||||||||||||
Payments on borrowings | (70 | ) | — | (8 | ) | — | (78 | ) | ||||||||||||||||
Payments of financing costs | (3 | ) | — | — | — | (3 | ) | |||||||||||||||||
Proceeds from borrowings from affiliates | 5,855 | — | 149 | (6,004 | ) | — | ||||||||||||||||||
Payments on borrowings from affiliates | (5,650 | ) | — | (100 | ) | 5,750 | — | |||||||||||||||||
Other intercompany financing activities | (42 | ) | (106 | ) | 148 | — | — | |||||||||||||||||
Cash dividends paid | (462 | ) | — | — | — | (462 | ) | |||||||||||||||||
Cash dividends paid to affiliates | — | (32 | ) | (521 | ) | 553 | — | |||||||||||||||||
Exercise of employee stock options | 71 | — | — | — | 71 | |||||||||||||||||||
Repurchase of shares | (343 | ) | — | — | — | (343 | ) | |||||||||||||||||
Excess tax benefit from equity-based compensation | 57 | — | — | — | 57 | |||||||||||||||||||
Other - net | — | — | (4 | ) | — | (4 | ) | |||||||||||||||||
Net cash used in financing activities | (208 | ) | (138 | ) | (334 | ) | 299 | (381 | ) | |||||||||||||||
Effect of currency on cash | — | — | (15 | ) | — | (15 | ) | |||||||||||||||||
Total increase (decrease) in cash | 87 | (3 | ) | (32 | ) | — | 52 | |||||||||||||||||
Cash at the beginning of the period | 33 | 6 | 294 | — | 333 | |||||||||||||||||||
Cash at the end of the period | $ | 120 | $ | 3 | $ | 262 | $ | — | $ | 385 | ||||||||||||||
Summary_of_Significant_Account2
Summary of Significant Accounting Policies Summary of Significant Accounting Policies (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Summary Of Significant Accounting Policies Textuals Abstract | ' | ' | ' |
Net sales | $22,046 | $16,311 | $16,049 |
Number of Eaton employees | 102,000 | ' | ' |
Countries of operation | 'over 60 | ' | ' |
Countries where products are sold | 175 | ' | ' |
Equity method of accounting minimum ownership interest | 20.00% | ' | ' |
Equity method of accounting maximum ownership interest | 50.00% | ' | ' |
Property, plant and equipment, estimated useful lives | '40 | ' | ' |
Machinery and equipment useful life range | ' 3 to 10 years | ' | ' |
Weighted average amortization period for intangible assets | '17 years | ' | ' |
Weighted average amortization period for customer relationships | 16 | ' | ' |
Software amortization maximum life | 10 | ' | ' |
RSU and awards vesting period | 'three or four years | ' | ' |
Acquisitions_of_Businesses_Det
Acquisitions of Businesses (Details) (USD $) | Feb. 01, 2013 | Dec. 31, 2012 | Nov. 30, 2012 | Dec. 31, 2011 | Jan. 20, 2014 | Dec. 31, 2011 | Sep. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Jun. 30, 2011 | Jun. 30, 2011 | Dec. 31, 2011 | 31-May-11 | Dec. 31, 2011 | Dec. 31, 2011 | Sep. 30, 2011 | Nov. 30, 2010 |
Subsequent Event - Agreed sale price, Pending sale to Safran of Aerospace Power Distribution Management Solutions and Integrated Cockpit Solutions businesses [Domain] | Cooper [Member] | Rolec Comercial e Industrial S.A. [Domain] | Jeil Hydraulics Co., Ltd. [Member] | Polimer Kaucuk Sanayi ve Pazarlama A.S. [Domain] | Gycom Electrical Low-Voltage Power Distribution, Control and Automation [Domain] | E.A. Pedersen Company [Member] | IE Power, Inc. [Member] | E. Begerow GmbH & Co. KG [Member] | ACTOM Low Voltage [Member] | C.I. ESI de Colombia S.A. [Member] | Internormen Technology Group [Member] | Eaton-SAMC (Shanghai) Aircraft Conveyance System Manufacturing Co., Ltd. [Member] | Tuthill Coupling Group [Member] | |||||
Electrical Systems and Services [Member] | Hydraulics [Member] | Hydraulics [Member] | Electrical Systems and Services [Member] | Electrical Systems and Services [Member] | Electrical Systems and Services [Member] | Hydraulics [Member] | Electrical Systems and Services [Member] | Electrical Products [Member] | Hydraulics [Member] | Aerospace [Member] | Hydraulics [Member] | |||||||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue reported for last annual period of acquired entity | ' | ' | ' | ' | ' | $5,409,000,000 | $85,000,000 | $189,000,000 | $335,000,000 | $24,000,000 | $37,000,000 | $5,000,000 | $84,000,000 | $65,000,000 | $8,000,000 | $55,000,000 | $0 | $35,000,000 |
Agreement to sell the Aerospace Power Distribution Management Solutions and Integrated Cockpit Solutions businesses to Safran USA Inc. | ' | ' | ' | ' | '270 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Business acquisition cost | ' | 13,796,000,000 | ' | 325,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Purchase price of Cooper | ' | ' | 13,192,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cooper shareholders receipt of cash per ordinary share of Cooper Industries plc | ' | ' | 39.15 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cooper shareholder % receipt of one Eaton share for one ordinary share of Cooper Industries plc | ' | ' | 77.48% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Former Eaton Corporation shareholders ownership of Eaton after Eaton Corporation's acquisition of Cooper | ' | ' | 73.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Former Cooper shareholders ownership of Eaton after Eaton Corporation's acquisition of Cooper | ' | ' | 27.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sale of Apex to Bain Capital by Cooper and Danaher | $1,600,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Acquisitions_and_Sales_of_Busi2
Acquisitions and Sales of Businesses Fair Value of Consideration Transferred (Details) (USD $) | Nov. 30, 2012 |
Share data in Millions, unless otherwise specified | |
Business Acquisition [Line Items] | ' |
Cooper shares | 163.6 |
Cooper shares issued pursuant to conversion of stock options and share units under Cooper equity-based compensation plans | 1.8 |
Total Cooper shares and share equivalents prior to transaction | 165.4 |
Exchange ratio per share | 0.77479 |
Total Eaton shares issued | 128.1 |
Weighted-average Eaton Corporation per share price | $51.91 |
Total value of Eaton share consideration for purchase of Cooper | 6,649,000,000 |
Total cash consideration paid for Cooper shares and share equivalents | 6,474,000,000 |
Total cash consideration paid for equity-based compensation plans at fair value | 69,000,000 |
Purchase price of Cooper | 13,192,000,000 |
Cooper shareholders receipt of cash per ordinary share of Cooper Industries plc | $39.15 |
Acquisitions_and_Sales_of_Busi3
Acquisitions and Sales of Businesses Actual and Pro Forma Impact (Details) (USD $) | 1 Months Ended | 12 Months Ended |
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2012 | Dec. 31, 2012 |
Business Acquisition [Line Items] | ' | ' |
Pro forma net sales | ' | $21,792 |
Pro forma net income from continuing operations attributable to Eaton ordinary shareholders | ' | 1,695 |
Pro forma diluted earnings per share from continuing operations | ' | $3.54 |
Cooper net sales | 470 | ' |
Cooper net income | $66 | ' |
Acquisitions_and_Sales_of_Busi4
Acquisitions and Sales of Businesses Assets and liabilities acquired (Details) (USD $) | Nov. 30, 2012 | |
In Millions, unless otherwise specified | ||
Business Acquisition [Line Items] | ' | |
Purchase price of Cooper | $13,192 | |
Cooper Industries plc [Member] | ' | |
Business Acquisition [Line Items] | ' | |
Working capital accounts acquired | 2,286 | [1] |
Prepaid expenses and other current assets | 273 | |
Property, plant and equipment | 845 | |
Investment in Apex Tool Group, LLC | 800 | |
Intangible assets | 5,369 | |
Other assets | 65 | |
Debt | -1,221 | |
Accounts payable | -516 | |
Other current liabilities | -879 | |
Other noncurrent liabilities | -2,362 | |
Total identifiable net assets | 4,660 | |
Goodwill related to Cooper acquisition | 8,532 | |
Purchase price of Cooper | 13,192 | |
Acquired receivables | 955 | |
Contingent liabilities acquired | 419 | |
Scenario, Previously Reported [Member] | Cooper Industries plc [Member] | ' | |
Business Acquisition [Line Items] | ' | |
Working capital accounts acquired | 2,304 | [1] |
Prepaid expenses and other current assets | 204 | |
Property, plant and equipment | 885 | |
Investment in Apex Tool Group, LLC | 807 | |
Intangible assets | 5,250 | |
Other assets | 35 | |
Debt | -1,221 | |
Accounts payable | -519 | |
Other current liabilities | -673 | |
Other noncurrent liabilities | -2,185 | |
Total identifiable net assets | 4,887 | |
Goodwill related to Cooper acquisition | 8,305 | |
Purchase price of Cooper | 13,192 | |
Scenario, Adjustment [Member] | Cooper Industries plc [Member] | ' | |
Business Acquisition [Line Items] | ' | |
Working capital accounts acquired | -18 | [1] |
Prepaid expenses and other current assets | 69 | |
Property, plant and equipment | -40 | |
Investment in Apex Tool Group, LLC | -7 | |
Intangible assets | 119 | |
Other assets | 30 | |
Debt | 0 | |
Accounts payable | 3 | |
Other current liabilities | -206 | |
Other noncurrent liabilities | -177 | |
Total identifiable net assets | -227 | |
Goodwill related to Cooper acquisition | 227 | |
Purchase price of Cooper | $0 | |
[1] | Working capital accounts include Cash, Short-term investments, Accounts receivable and Inventory. |
Acquisition_Integration_Charge
Acquisition Integration Charges and Transaction Costs (Details) (USD $) | 12 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Acquisition Integration Charges [Line Items] | ' | ' | ' |
Business segment acquisition integration pretax charges | $117 | $33 | $14 |
Acquisition Integration Charges | ' | ' | ' |
Total acquisition integration charges | 154 | 44 | 14 |
Transaction costs [Abstract] | ' | ' | ' |
Corporate | 8 | 106 | 0 |
Financing fees | 1 | 72 | 0 |
Total business acquisition transaction cost | 9 | 178 | 0 |
Total acquisition integration charges and transaction costs before income taxes | 163 | 222 | 14 |
Total integration charges and transaction costs after income taxes | 110 | 167 | 10 |
Acquisition integration charges per common share - diluted | $0.23 | $0.48 | $0.03 |
Electrical Products [Member] | ' | ' | ' |
Acquisition Integration Charges [Line Items] | ' | ' | ' |
Business segment acquisition integration pretax charges | 44 | 4 | 1 |
Electrical Systems and Services [Member] | ' | ' | ' |
Acquisition Integration Charges [Line Items] | ' | ' | ' |
Business segment acquisition integration pretax charges | 37 | 13 | 9 |
Hydraulics [Member] | ' | ' | ' |
Acquisition Integration Charges [Line Items] | ' | ' | ' |
Business segment acquisition integration pretax charges | 36 | 16 | 4 |
All Segments [Member] | ' | ' | ' |
Acquisition Integration Charges [Line Items] | ' | ' | ' |
Business segment acquisition integration pretax charges | 117 | 33 | 14 |
Corporate [Member] | ' | ' | ' |
Acquisition Integration Charges [Line Items] | ' | ' | ' |
Corporate acquisition integration charges | $37 | $11 | $0 |
Acquisition_Integration_and_Re2
Acquisition Integration and Restructuring Charges Restructuring Charges (Details) (USD $) | 3 Months Ended | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2012 | Dec. 31, 2013 |
Acquisition Integration Charges [Line Items] | ' | ' |
Restructuring Charges | $50 | $36 |
Severance costs | 34 | ' |
Other restructuring costs | 16 | ' |
Restructuring reserve, current | $34 | $32 |
Goodwill_and_Other_Intangible_2
Goodwill and Other Intangible Assets Schedule of Goodwill by Segment (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Millions, unless otherwise specified | |||
Goodwill [Line Items] | ' | ' | ' |
Goodwill | $14,495 | $14,443 | $5,537 |
Electrical Products [Member] | ' | ' | ' |
Goodwill [Line Items] | ' | ' | ' |
Goodwill | 7,189 | 7,117 | ' |
Electrical Systems and Services [Member] | ' | ' | ' |
Goodwill [Line Items] | ' | ' | ' |
Goodwill | 4,517 | 4,520 | ' |
Hydraulics [Member] | ' | ' | ' |
Goodwill [Line Items] | ' | ' | ' |
Goodwill | 1,385 | 1,404 | ' |
Aerospace [Member] | ' | ' | ' |
Goodwill [Line Items] | ' | ' | ' |
Goodwill | 1,048 | 1,045 | ' |
Vehicle [Member] | ' | ' | ' |
Goodwill [Line Items] | ' | ' | ' |
Goodwill | $356 | $357 | ' |
Goodwill_and_Other_Intangible_3
Goodwill and Other Intangible Assets Schedule of Other Intangible Assets by Major Class (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Summary of other intangible assets | ' | ' |
Intangible assets not subject to amortization (primarily trademarks) | $1,868 | $1,865 |
Intangible assets subject to amortization | ' | ' |
Historical cost | 6,602 | 6,624 |
Accumulated amortization | 1,284 | 909 |
Customer Relationships [Member] | ' | ' |
Intangible assets subject to amortization | ' | ' |
Historical cost | 3,859 | 3,838 |
Accumulated amortization | 669 | 428 |
Patents and Technology [Member] | ' | ' |
Intangible assets subject to amortization | ' | ' |
Historical cost | 1,588 | 1,626 |
Accumulated amortization | 389 | 325 |
Finite Lived Intangible Assets, Other [Member] | ' | ' |
Intangible assets subject to amortization | ' | ' |
Historical cost | 1,155 | 1,160 |
Accumulated amortization | $226 | $156 |
Goodwill_and_Other_Intangible_4
Goodwill and Other Intangible Assets Intangible Assets Future Amortization Expense (Details) (USD $) | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||||||
Finite lived intangible assets future amortization expense [Line Items] | ' | ' | ' | ' | ' | ' |
2013 | ' | ' | ' | ' | ' | $432 |
2014 | ' | ' | ' | ' | 428 | ' |
2015 | ' | ' | ' | 422 | ' | ' |
2016 | ' | ' | 410 | ' | ' | ' |
2017 | ' | 399 | ' | ' | ' | ' |
2018 | $379 | ' | ' | ' | ' | ' |
Goodwill_and_Other_Intangible_5
Goodwill and Other Intangible Assets Other Intangibles Assets Related to the Acquisition of Cooper (Details) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2013 |
Indefinite-lived Intangible Assets [Line Items] | ' |
Total intangible assets at fair value for Cooper acquistion | 5,369 |
Relief-from-royalty [Member] | ' |
Indefinite-lived Intangible Assets [Line Items] | ' |
Contract-based | 44 |
Relief-from-royalty [Member] | Trade names indefinite lived [Member] | ' |
Indefinite-lived Intangible Assets [Line Items] | ' |
Trade names (indefinite-lived) | 1,410 |
Relief-from-royalty [Member] | Trade Name [Member] | ' |
Indefinite-lived Intangible Assets [Line Items] | ' |
Trade names | 638 |
Customer relationship Cooper [Member] | Multi-period excess earnings [Member] | ' |
Indefinite-lived Intangible Assets [Line Items] | ' |
Customer relationships | 2,510 |
Technology Cooper [Member] | Relief-from-royalty multi-period excess earnings [Member] | ' |
Indefinite-lived Intangible Assets [Line Items] | ' |
Technology | 767 |
Useful LIfe [Member] [Member] | Relief-from-royalty [Member] | ' |
Indefinite-lived Intangible Assets [Line Items] | ' |
Useful life | '9.5 |
Useful LIfe [Member] [Member] | Relief-from-royalty [Member] | Trade names indefinite lived [Member] | ' |
Indefinite-lived Intangible Assets [Line Items] | ' |
Useful life | 'N/A |
Useful LIfe [Member] [Member] | Relief-from-royalty [Member] | Trade Name [Member] | ' |
Indefinite-lived Intangible Assets [Line Items] | ' |
Useful life | '3-20 |
Useful LIfe [Member] [Member] | Customer relationship Cooper [Member] | Multi-period excess earnings [Member] | ' |
Indefinite-lived Intangible Assets [Line Items] | ' |
Useful life | '13-18 |
Useful LIfe [Member] [Member] | Technology Cooper [Member] | Relief-from-royalty multi-period excess earnings [Member] | ' |
Indefinite-lived Intangible Assets [Line Items] | ' |
Useful life | '4-20 |
Debt_Details
Debt (Details) (USD $) | 0 Months Ended | 12 Months Ended | |||||||||||
Jun. 28, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jun. 14, 2017 | Jun. 16, 2016 | Jun. 14, 2015 | Nov. 14, 2013 | Nov. 30, 2012 | Nov. 20, 2012 | Nov. 14, 2012 | Jun. 14, 2012 | 21-May-12 | |
Summary of long-term debt, including the current portion | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total long-term debt | ' | $9,536,000,000 | $10,079,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Less current portion of long-term debt | ' | -567,000,000 | -314,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term debt less current portion | ' | 8,969,000,000 | 9,765,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Short-term debt | ' | 13,000,000 | 757,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Refinanced three year revolving credit facility | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 500,000,000 | ' |
Refinanced five year revolving credit facility | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 500,000,000 | ' |
New three year revolving credit facility | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 750,000,000 | ' |
New three year revolving credit facility expiration | ' | ' | ' | ' | ' | ' | 750,000,000 | ' | ' | ' | ' | ' | ' |
New five year revolving credit facility | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 750,000,000 | ' |
New five year revolving credit facility expiration | ' | ' | ' | ' | 750,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Additional five-year revolving credit facility | ' | 500,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Additional five year credit facility expiration | ' | ' | ' | ' | ' | 500,000,000 | ' | ' | ' | ' | ' | ' | ' |
Previous long-term line of credit | ' | 1,500,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from issuance of debt | 600,000,000 | 9,000,000 | 7,156,000,000 | 381,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Deferred finance costs, noncurrent | ' | ' | 40,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Facility deferred finance costs | ' | 69,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Bridge facility length of time | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '364 days |
Proceeds from issuance of senior long term debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,853,000,000 | ' | ' | ' |
Issuance of senior notes | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,900,000,000 | 4,900,000,000 | ' | ' |
Control provision purchase price percentage of principal plus accrued and unpaid interest | ' | 100.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Optional senior note redemption provision - first possibility | ' | '100% of principal | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Optional senior note redemption provision - second possibility | ' | 'sum of present value of remaining payments plus basis points ranging from 10 to 25 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Senior note control provision | ' | 'purchase price of 101% of principal plus accrued and unpaid interest | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Senior note registration requirement | ' | ' | ' | ' | ' | ' | ' | 'November 14, 2013 | ' | ' | ' | ' | ' |
Line of credit facility, maximum borrowing capacity | ' | 2,000,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Short-term Debt [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Short-term debt | ' | 13,000,000 | 757,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Bridge loan borrowings | ' | ' | ' | ' | ' | ' | ' | ' | 1,669,000,000 | ' | ' | ' | ' |
Bridge facility draw amount outstanding | ' | ' | 669,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Bridge Loan | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6,750,000,000 |
US short term commerical paper | ' | ' | 75,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Short-term debt, weighted average interest rate | ' | ' | 0.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
US other short-term debt | ' | ' | 9,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Non-US short-term debt | ' | ' | 4,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Non-US short-term line of credit available | ' | 2,069,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amortization of Financing Costs | ' | ' | 68,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maturities of Long-term Debt [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2014 | ' | 567,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2015 | ' | 1,005,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2016 | ' | 250,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2017 | ' | 1,540,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2018 | ' | 582,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest Expense [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest paid on debt | ' | 294,000,000 | 237,000,000 | 174,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Notes due 2013 [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Summary of long-term debt, including the current portion | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Notes Payable, Noncurrent | ' | 0 | 300,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate | ' | 4.90% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Notes due 2014 [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Summary of long-term debt, including the current portion | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Notes Payable, Noncurrent | ' | 250,000,000 | 250,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate | ' | 5.95% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Related long term debt converted to floating interest rates by interest rate swaps | ' | 100,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Floating rate notes due 2014 [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Summary of long-term debt, including the current portion | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Floating rate notes | ' | 300,000,000 | 300,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Related long-term debt converted to fixed interest rate by interest rate swap | ' | 300,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debenture due 2015 [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Summary of long-term debt, including the current portion | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long term debt debentures | ' | 300,000,000 | 300,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate | ' | 5.45% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Notes due 2015 [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Summary of long-term debt, including the current portion | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Notes Payable, Noncurrent | ' | 100,000,000 | 100,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long term debt instrument interest rate | ' | 4.65% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Senior notes due 2015 [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Summary of long-term debt, including the current portion | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Senior Notes, Noncurrent | ' | 600,000,000 | 600,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Senior long term note interest rate | ' | 0.95% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debentures due 2016 [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Summary of long-term debt, including the current portion | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long term debt debentures | ' | 240,000,000 | 250,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate | ' | 2.38% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Notes due 2017 [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Summary of long-term debt, including the current portion | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Notes Payable, Noncurrent | ' | 250,000,000 | 250,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate | ' | 5.30% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Related long term debt converted to floating interest rates by interest rate swaps | ' | 150,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debenture due 2017 [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Summary of long-term debt, including the current portion | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long term debt debentures | ' | 289,000,000 | 300,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate | ' | 6.10% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Senior notes due 2017 [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Summary of long-term debt, including the current portion | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Senior Notes, Noncurrent | ' | 1,000,000,000 | 1,000,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate | ' | 1.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Related long term debt converted to floating interest rates by interest rate swaps | ' | 450,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Notes due 2018 [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Summary of long-term debt, including the current portion | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Notes Payable, Noncurrent | ' | 450,000,000 | 450,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate | ' | 5.60% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Related long term debt converted to floating interest rates by interest rate swaps | ' | 415,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Japanese Yen notes due 2018 [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Summary of long-term debt, including the current portion | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate | ' | 4.22% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Notes due 2019 [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Summary of long-term debt, including the current portion | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Notes Payable, Noncurrent | ' | 300,000,000 | 300,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate | ' | 6.95% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Related long term debt converted to floating interest rates by interest rate swaps | ' | 300,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debentures due 2020 [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Summary of long-term debt, including the current portion | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long term debt debentures | ' | 239,000,000 | 250,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate | ' | 3.88% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Related long term debt converted to floating interest rates by interest rate swaps | ' | 150,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Notes due 2021 [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Summary of long-term debt, including the current portion | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Notes Payable, Noncurrent | ' | 300,000,000 | 300,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate | ' | 3.47% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Related long term debt converted to floating interest rates by interest rate swaps | ' | 150,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debentures due 2022 [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Summary of long-term debt, including the current portion | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long term debt debentures | ' | 100,000,000 | 100,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate | ' | 8.10% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Senior notes due 2022 [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Summary of long-term debt, including the current portion | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Senior Notes, Noncurrent | ' | 1,600,000,000 | 1,600,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate | ' | 2.75% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Related long term debt converted to floating interest rates by interest rate swaps | ' | 1,100,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Notes due 2023 [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Summary of long-term debt, including the current portion | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Notes Payable, Noncurrent | ' | 300,000,000 | 300,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate | ' | 3.68% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Related long term debt converted to floating interest rates by interest rate swaps | ' | 150,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debentures due 2025 [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Summary of long-term debt, including the current portion | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long term debt debentures | ' | 145,000,000 | 145,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate | ' | 6.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debentures due 2029 [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Summary of long-term debt, including the current portion | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long term debt debentures | ' | 200,000,000 | 200,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate | ' | 7.65% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Related long term debt converted to floating interest rates by interest rate swaps | ' | 50,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Senior notes due 2032 [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Summary of long-term debt, including the current portion | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Senior Notes, Noncurrent | ' | 700,000,000 | 700,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate | ' | 4.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debentures due 2034 [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Summary of long-term debt, including the current portion | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long term debt debentures | ' | 136,000,000 | 140,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate | ' | 5.45% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Related long term debt converted to floating interest rates by interest rate swaps | ' | 25,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Notes due 2037 [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Summary of long-term debt, including the current portion | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Notes Payable, Noncurrent | ' | 240,000,000 | 240,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate | ' | 5.80% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Senior notes due 2042 [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Summary of long-term debt, including the current portion | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Senior Notes, Noncurrent | ' | 1,000,000,000 | 1,000,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate | ' | 4.15% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Notes due from 2012 to 2035 [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Summary of long-term debt, including the current portion | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Notes Payable, Noncurrent | ' | 249,000,000 | 255,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Related long term debt converted to floating interest rates by interest rate swaps | ' | 50,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Minimum interest rate | ' | 5.25% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum interest rate | ' | 12.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other long-term debt [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Summary of long-term debt, including the current portion | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other Long-term Debt, Noncurrent | ' | 153,000,000 | 333,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Senior notes due 2015 [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Summary of long-term debt, including the current portion | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Senior long term note interest rate | ' | 0.95% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Senior notes due 2017 [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Summary of long-term debt, including the current portion | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Senior long term note interest rate | ' | 1.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Senior notes due 2022 [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Summary of long-term debt, including the current portion | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Senior long term note interest rate | ' | 2.75% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Senior notes due 2032 [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Summary of long-term debt, including the current portion | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Senior long term note interest rate | ' | 4.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Senior notes due 2042 [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Summary of long-term debt, including the current portion | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Senior long term note interest rate | ' | 4.15% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Notes due June 28, 2021 [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Summary of long-term debt, including the current portion | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Face Amount | ' | 300,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate | ' | 3.47% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Notes due June 28, 2023 [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Summary of long-term debt, including the current portion | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Face Amount | ' | 300,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate | ' | 3.68% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Non-derivative net investment hedge [Member] | Japanese Yen notes due 2018 [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Summary of long-term debt, including the current portion | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Notes Payable, Noncurrent | ' | $95,000,000 | $116,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Retirement_Benefits_Plans_Obli
Retirement Benefits Plans - Obligations and Funded Status (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Millions, unless otherwise specified | |||
Funded status | ' | ' | ' |
Fair value of plan assets | $4,372 | $3,855 | ' |
United States pension liabilities [Member] | ' | ' | ' |
Funded status | ' | ' | ' |
Fair value of plan assets | 2,940 | 2,607 | 1,664 |
Benefit obligations | -3,625 | -3,817 | -2,899 |
Funded status | -685 | -1,210 | ' |
Amounts recognized in the Consolidated Balance Sheets | ' | ' | ' |
Non-current assets | 44 | 0 | ' |
Current liabilities | -15 | -15 | ' |
Non-current liabilities | -714 | -1,195 | ' |
Total | -685 | -1,210 | ' |
Amounts recognized in Accumulated other comprehensive loss (pretax) | ' | ' | ' |
Net actuarial loss | 1,051 | 1,618 | ' |
Prior service cost (credit) | 3 | 1 | ' |
Other | 0 | 2 | ' |
Total | 1,054 | 1,621 | 1,602 |
Non-United States pension liabilities [Member] | ' | ' | ' |
Funded status | ' | ' | ' |
Fair value of plan assets | 1,432 | 1,248 | 989 |
Benefit obligations | -2,127 | -2,017 | -1,505 |
Funded status | -695 | -769 | ' |
Amounts recognized in the Consolidated Balance Sheets | ' | ' | ' |
Non-current assets | 86 | 72 | ' |
Current liabilities | -30 | -33 | ' |
Non-current liabilities | -751 | -808 | ' |
Total | -695 | -769 | ' |
Amounts recognized in Accumulated other comprehensive loss (pretax) | ' | ' | ' |
Net actuarial loss | 515 | 550 | ' |
Prior service cost (credit) | 13 | 9 | ' |
Other | 0 | 0 | ' |
Total | 528 | 559 | 358 |
Other postretirement liabilities [Member] | ' | ' | ' |
Funded status | ' | ' | ' |
Fair value of plan assets | 138 | 146 | 156 |
Benefit obligations | -867 | -950 | -853 |
Funded status | -729 | -804 | ' |
Amounts recognized in the Consolidated Balance Sheets | ' | ' | ' |
Non-current assets | 0 | 0 | ' |
Current liabilities | -61 | -62 | ' |
Non-current liabilities | -668 | -742 | ' |
Total | -729 | -804 | ' |
Amounts recognized in Accumulated other comprehensive loss (pretax) | ' | ' | ' |
Net actuarial loss | 190 | 269 | ' |
Prior service cost (credit) | -6 | -7 | ' |
Other | 0 | 0 | ' |
Total | $184 | $262 | $248 |
Retirement_Benefits_Plans_Chan
Retirement Benefits Plans - Change in Benefit Obligations (Details 1) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | |
Change in benefit obligations | ' | ' | |
Actuarial loss | ($229) | [1] | ' |
United States pension liabilities [Member] | ' | ' | |
Change in benefit obligations | ' | ' | |
Balance at January 1 | 3,817 | 2,899 | |
Service cost | 128 | 115 | |
Interest cost | 147 | 134 | |
Actuarial loss | -223 | 264 | |
Gross benefits paid | -246 | -132 | |
Currency translation | 0 | 0 | |
Acquistions | 0 | 536 | |
Other | 2 | 1 | |
Balance at December 31 | 3,625 | 3,817 | |
Accumulated benefit obligation | 3,458 | 3,639 | |
Non-United States pension liabilities [Member] | ' | ' | |
Change in benefit obligations | ' | ' | |
Balance at January 1 | 2,017 | 1,505 | |
Service cost | 62 | 50 | |
Interest cost | 80 | 77 | |
Actuarial loss | 21 | 196 | |
Gross benefits paid | -90 | -78 | |
Currency translation | 36 | 54 | |
Acquistions | 0 | 212 | |
Other | 1 | 1 | |
Balance at December 31 | 2,127 | 2,017 | |
Accumulated benefit obligation | 2,003 | 1,885 | |
Other postretirement liabilities [Member] | ' | ' | |
Change in benefit obligations | ' | ' | |
Balance at January 1 | 950 | 853 | |
Service cost | 20 | 17 | |
Interest cost | 35 | 38 | |
Actuarial loss | -54 | 34 | |
Gross benefits paid | -103 | -94 | |
Currency translation | -2 | 0 | |
Acquistions | 0 | 74 | |
Other | 21 | 28 | |
Balance at December 31 | $867 | $950 | |
[1] | These components of Accumulated other comprehensive loss are included in the computation of net periodic pension cost. See Note 6 for additional information about defined benefit pension items. |
Retirement_Benefits_Plans_Chan1
Retirement Benefits Plans - Change in Plan Assets (Details 2) (USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Change in plan assets | ' | ' | ' | ' |
Balance at December 31 | ' | $4,372 | $3,855 | ' |
United States pension liabilities [Member] | ' | ' | ' | ' |
Change in plan assets | ' | ' | ' | ' |
Balance at January 1 | 2,940 | 2,607 | 1,664 | ' |
Actual return on plan assets | ' | 383 | 293 | ' |
Employer contributions | 254 | 196 | 311 | 264 |
Gross benefits paid | ' | -246 | -132 | ' |
Foreign currency translation | ' | 0 | 0 | ' |
Acquisition | ' | 0 | 471 | ' |
Other | ' | 0 | 0 | ' |
Balance at December 31 | ' | 2,940 | 2,607 | 1,664 |
Non-United States pension liabilities [Member] | ' | ' | ' | ' |
Change in plan assets | ' | ' | ' | ' |
Balance at January 1 | 1,432 | 1,248 | 989 | ' |
Actual return on plan assets | ' | 118 | 86 | ' |
Employer contributions | 108 | 145 | 102 | 108 |
Gross benefits paid | ' | -90 | -78 | ' |
Foreign currency translation | ' | 15 | 39 | ' |
Acquisition | ' | 0 | 128 | ' |
Other | ' | -4 | -18 | ' |
Balance at December 31 | ' | 1,432 | 1,248 | 989 |
Other postretirement liabilities [Member] | ' | ' | ' | ' |
Change in plan assets | ' | ' | ' | ' |
Balance at January 1 | ' | 146 | 156 | ' |
Actual return on plan assets | ' | 15 | 13 | ' |
Employer contributions | ' | 59 | 43 | ' |
Gross benefits paid | ' | -103 | -94 | ' |
Foreign currency translation | ' | 0 | 0 | ' |
Acquisition | ' | 0 | 0 | ' |
Other | ' | 21 | 28 | ' |
Balance at December 31 | ' | $138 | $146 | ' |
Retirement_Benefits_Plans_Comp
Retirement Benefits Plans - Components of Pension Plans with Accumulated Benefit Obligation in Excess of Plan Assets (Details 3) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
United States pension liabilities [Member] | ' | ' |
Components of pension plans with an accumulated benefit obligation in excess of plan assets | ' | ' |
Projected benefit obligation | $3,166 | $3,817 |
Accumulated benefit obligation | 2,999 | 3,639 |
Fair value of plan assets | 2,437 | 2,607 |
Non-United States pension liabilities [Member] | ' | ' |
Components of pension plans with an accumulated benefit obligation in excess of plan assets | ' | ' |
Projected benefit obligation | 1,411 | 1,412 |
Accumulated benefit obligation | 1,349 | 1,307 |
Fair value of plan assets | $635 | $657 |
Retirement_Benefits_Plans_Chan2
Retirement Benefits Plans - Changes in Pension and Other Postretirement Liabilities Recognized in AOCI (Details 4) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Changes in pension and other postretirement benefit liabilities recognized in Accumulated other comprehensive loss | ' | ' | ' |
Prior service cost arising during the year | ($6) | ($1) | ($5) |
Less amounts included in expense during the year | 456 | -386 | -648 |
Net change for the year | 2 | -2 | 0 |
United States pension liabilities [Member] | ' | ' | ' |
Changes in pension and other postretirement benefit liabilities recognized in Accumulated other comprehensive loss | ' | ' | ' |
Balance at January 1 | 1,621 | 1,602 | ' |
Prior service cost arising during the year | 2 | 1 | ' |
Net loss arising during the year | 381 | -154 | ' |
Foreign currency translation | 0 | 0 | ' |
Less amounts included in expense during the year | -186 | -138 | ' |
Other | -2 | -2 | ' |
Net change for the year | -567 | 19 | ' |
Balance at December 31 | 1,054 | 1,621 | ' |
Non-United States pension liabilities [Member] | ' | ' | ' |
Changes in pension and other postretirement benefit liabilities recognized in Accumulated other comprehensive loss | ' | ' | ' |
Balance at January 1 | 559 | 358 | ' |
Prior service cost arising during the year | 4 | 0 | ' |
Net loss arising during the year | 12 | -205 | ' |
Foreign currency translation | 6 | 15 | ' |
Less amounts included in expense during the year | -29 | -19 | ' |
Other | 0 | 0 | ' |
Net change for the year | -31 | 201 | ' |
Balance at December 31 | 528 | 559 | ' |
Other postretirement liabilities [Member] | ' | ' | ' |
Changes in pension and other postretirement benefit liabilities recognized in Accumulated other comprehensive loss | ' | ' | ' |
Balance at January 1 | 262 | 248 | ' |
Prior service cost arising during the year | 0 | 0 | ' |
Net loss arising during the year | 63 | -27 | ' |
Foreign currency translation | 1 | 0 | ' |
Less amounts included in expense during the year | -14 | -13 | ' |
Other | 0 | 0 | ' |
Net change for the year | -78 | 14 | ' |
Balance at December 31 | $184 | $262 | ' |
Retirement_Benefits_Plans_Bene
Retirement Benefits Plans - Benefits Expense (Details 5) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
United States pension benefit expense | ' | ' | ' |
Defined Benefit Plans and Other Postretirement Benefit Plans | ' | ' | ' |
Service cost | $128 | $115 | $93 |
Interest cost | 147 | 134 | 132 |
Expected return on plan assets | -226 | -183 | -164 |
Amortization | 133 | 118 | 75 |
Benefit plans | 182 | 184 | 136 |
Curtailment loss | 0 | 0 | 0 |
Settlement loss | 53 | 20 | 17 |
Total expense | 235 | 204 | 153 |
Non-United States pension benefit expense [Member] | ' | ' | ' |
Defined Benefit Plans and Other Postretirement Benefit Plans | ' | ' | ' |
Service cost | 62 | 50 | 48 |
Interest cost | 80 | 77 | 78 |
Expected return on plan assets | -85 | -77 | -70 |
Amortization | 27 | 15 | 13 |
Benefit plans | 84 | 65 | 69 |
Curtailment loss | 1 | 1 | 1 |
Settlement loss | 1 | 3 | 4 |
Total expense | 86 | 69 | 74 |
Other postretirement benefits expense [Member] | ' | ' | ' |
Defined Benefit Plans and Other Postretirement Benefit Plans | ' | ' | ' |
Service cost | 20 | 17 | 15 |
Interest cost | 35 | 38 | 41 |
Expected return on plan assets | -6 | -6 | 0 |
Amortization | 14 | 13 | 12 |
Benefit plans | 63 | 62 | 68 |
Curtailment loss | 0 | 0 | 0 |
Settlement loss | 0 | 0 | 0 |
Total expense | $63 | $62 | $68 |
Retirement_Benefits_Plans_Reti
Retirement Benefits Plans Retirement Benefits Plans - Estimated Future Pretax Amounts Recognized From AOCI to Net Periodic Benefit Cost (Details 6) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2013 |
United States pension liabilities [Member] | ' |
Defined Benefit Plans and Other Postretirement Benefit Plans | ' |
Actuarial loss | $155 |
Prior service cost (credit) | 0 |
Total | 155 |
Non-United States pension liabilities [Member] | ' |
Defined Benefit Plans and Other Postretirement Benefit Plans | ' |
Actuarial loss | 26 |
Prior service cost (credit) | 1 |
Total | 27 |
Other postretirement liabilities [Member] | ' |
Defined Benefit Plans and Other Postretirement Benefit Plans | ' |
Actuarial loss | 9 |
Prior service cost (credit) | -2 |
Total | $7 |
Retirement_Benefits_Plans_Pens
Retirement Benefits Plans - Pension Plans Assumptions (Details 7) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
United States pension plans [Member] | ' | ' | ' |
Assumptions used to determine benefit obligation at year-end | ' | ' | ' |
Discount rate | 4.67% | 3.97% | 4.70% |
Rate of compensation increase | 3.16% | 3.16% | 3.15% |
Assumptions used to determine expense | ' | ' | ' |
Discount rate | 3.97% | 4.70% | 5.50% |
Expected long-term return on plan assets | 8.45% | 8.50% | 8.50% |
Rate of compensation increase | 3.16% | 3.15% | 3.61% |
Non-United States pension plans [Member] | ' | ' | ' |
Assumptions used to determine benefit obligation at year-end | ' | ' | ' |
Discount rate | 4.20% | 4.17% | 5.12% |
Rate of compensation increase | 3.12% | 3.09% | 3.62% |
Assumptions used to determine expense | ' | ' | ' |
Discount rate | 4.17% | 5.12% | 5.40% |
Expected long-term return on plan assets | 6.92% | 7.10% | 7.17% |
Rate of compensation increase | 3.09% | 3.62% | 3.63% |
Retirement_Benefits_Plans_Othe
Retirement Benefits Plans - Other Postretirement Benefits Plan Assumptions (Details 8) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Defined Benefit Plan, Effect of One-Percentage Point Change in Assumed Health Care Cost Trend Rates [Abstract] | ' | ' | ' |
Effect on total service and interest cost, 1% increase | 1 | ' | ' |
Effect on total service and interest cost, 1% decrease | -1 | ' | ' |
Effect on other postretirement liabilities, 1% increase | 21 | ' | ' |
Effect on other postretirement liabilities, 1% decrease | -19 | ' | ' |
Other postretirement benefits plans [Member] | ' | ' | ' |
Assumptions used to determine benefit obligation at year-end | ' | ' | ' |
Discount rate | 4.48% | 3.79% | 4.60% |
Health care cost trend rate assumed for next year | 6.64% | 6.96% | 7.60% |
Ultimate health care cost trend rate | 4.77% | 4.53% | 4.50% |
Year ultimate health care cost trend rate is achieved | '2023 | '2022 | '2020 |
Assumptions used to determine expense | ' | ' | ' |
Discount rate | 3.79% | 4.60% | 5.20% |
Initial health care cost trend rate | 6.96% | 7.60% | 8.10% |
Ultimate health care cost trend rate | 4.53% | 4.50% | 4.50% |
Year ultimate health care cost trend rate is achieved | '2022 | '2020 | '2020 |
Retirement_Benefits_Plans_Reti1
Retirement Benefits Plans Retirement Benefits Plans - Employer Contributions to Retirement Benefits Plans (Details 9) (USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Defined Benefit Plans and Other Postretirement Benefit Plans | ' | ' | ' | ' |
Funding postretirement Medicare Part D prescription drug benefits into VEBA trust | ' | ' | ' | $154 |
VEBA target trust allocation in diversified global equities | ' | 50.00% | ' | ' |
VEBA target trust allocation in fixed income securities | ' | 50.00% | ' | ' |
United States pension plans [Member] | ' | ' | ' | ' |
Defined Benefit Plans and Other Postretirement Benefit Plans | ' | ' | ' | ' |
Employer contributions to pension plans | 254 | 196 | 311 | 264 |
Non-United States pension plans [Member] | ' | ' | ' | ' |
Defined Benefit Plans and Other Postretirement Benefit Plans | ' | ' | ' | ' |
Employer contributions to pension plans | 108 | 145 | 102 | 108 |
Total pension plans [Member] | ' | ' | ' | ' |
Defined Benefit Plans and Other Postretirement Benefit Plans | ' | ' | ' | ' |
Employer contributions to pension plans | $362 | $341 | $413 | $372 |
Retirement_Benefits_Plans_Esti
Retirement Benefits Plans - Estimated Pension and Other Postretirement Benefit Payments (Details 10) (USD $) | Dec. 31, 2013 |
In Millions, unless otherwise specified | |
Estimated United States pension payments [Member] | ' |
Defined Benefit Plans and Other Postretirement Benefit Plans | ' |
2014 | $314 |
2015 | 256 |
2016 | 273 |
2017 | 277 |
2018 | 283 |
2019 - 2023 | 1,499 |
Estimated non-United States pension payments [Member] | ' |
Defined Benefit Plans and Other Postretirement Benefit Plans | ' |
2014 | 91 |
2015 | 92 |
2016 | 94 |
2017 | 99 |
2018 | 101 |
2019 - 2023 | 545 |
Gross [Member] | ' |
Defined Benefit Plans and Other Postretirement Benefit Plans | ' |
2014 | 93 |
2015 | 86 |
2016 | 82 |
2017 | 78 |
2018 | 74 |
2019 - 2023 | 316 |
Medicare Prescription Drug Subsidy [Member] | ' |
Defined Benefit Plans and Other Postretirement Benefit Plans | ' |
Medicare prescription drug subsidy 2014 | -6 |
Medicare prescription drug subsidy 2015 | -6 |
Medicare prescription drug subsidy 2016 | -6 |
Medicare prescription drug subsidy 2017 | -5 |
Medicare prescription drug subsidy 2018 | -4 |
Medicare prescription drug subsidy 2019 - 2023 | ($13) |
Retirement_Benefits_Plans_Fair
Retirement Benefits Plans - Fair Value of Pension Plan Assets (Details 11) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Total pension plan assets | $4,372 | $3,855 |
United States pension plans percentage of worldwide pension assets | 67.00% | ' |
United Kingdom pension plans percentage of worldwide pension assets | 26.00% | ' |
United States pension plans' target allocation of United States equities | 36.00% | ' |
United States pension plans' target allocation of non-United States equities | 32.00% | ' |
United States pension plans' target allocation of real estate | 7.00% | ' |
United States pension plans' target allocation of debt securities and other, including cash equivalents | 25.00% | ' |
United Kingdom pension plans' target allocation of equities | 57.00% | ' |
Quoted prices in active markets for identical assets (Level 1) [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Total pension plan assets | 471 | 416 |
Other observable inputs (Level 2) [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Total pension plan assets | 3,801 | 3,398 |
Unobservable inputs (Level 3) [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Total pension plan assets | 100 | 41 |
Non-United States Equity and Global Equities [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Total pension plan assets | 1,453 | 1,313 |
Non-United States Equity and Global Equities [Member] | Quoted prices in active markets for identical assets (Level 1) [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Total pension plan assets | 0 | 0 |
Non-United States Equity and Global Equities [Member] | Other observable inputs (Level 2) [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Total pension plan assets | 1,453 | 1,313 |
Non-United States Equity and Global Equities [Member] | Unobservable inputs (Level 3) [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Total pension plan assets | 0 | 0 |
United States Equity [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Total pension plan assets | 1,153 | 978 |
United States Equity [Member] | Quoted prices in active markets for identical assets (Level 1) [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Total pension plan assets | 0 | 0 |
United States Equity [Member] | Other observable inputs (Level 2) [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Total pension plan assets | 1,153 | 978 |
United States Equity [Member] | Unobservable inputs (Level 3) [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Total pension plan assets | 0 | 0 |
Fixed Income [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Total pension plan assets | 609 | 538 |
Fixed Income [Member] | Quoted prices in active markets for identical assets (Level 1) [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Total pension plan assets | 0 | 0 |
Fixed Income [Member] | Other observable inputs (Level 2) [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Total pension plan assets | 609 | 538 |
Fixed Income [Member] | Unobservable inputs (Level 3) [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Total pension plan assets | 0 | 0 |
Long Duration Funds [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Total pension plan assets | 63 | 61 |
Long Duration Funds [Member] | Quoted prices in active markets for identical assets (Level 1) [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Total pension plan assets | 0 | 0 |
Long Duration Funds [Member] | Other observable inputs (Level 2) [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Total pension plan assets | 63 | 61 |
Long Duration Funds [Member] | Unobservable inputs (Level 3) [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Total pension plan assets | 0 | 0 |
Exchange Traded Funds [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Total pension plan assets | 64 | 43 |
Exchange Traded Funds [Member] | Quoted prices in active markets for identical assets (Level 1) [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Total pension plan assets | 0 | 0 |
Exchange Traded Funds [Member] | Other observable inputs (Level 2) [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Total pension plan assets | 64 | 43 |
Exchange Traded Funds [Member] | Unobservable inputs (Level 3) [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Total pension plan assets | 0 | 0 |
Fixed Income Securities [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Total pension plan assets | 274 | 331 |
Fixed Income Securities [Member] | Quoted prices in active markets for identical assets (Level 1) [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Total pension plan assets | 0 | 0 |
Fixed Income Securities [Member] | Other observable inputs (Level 2) [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Total pension plan assets | 274 | 331 |
Fixed Income Securities [Member] | Unobservable inputs (Level 3) [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Total pension plan assets | 0 | 0 |
United States treasuries [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Total pension plan assets | 63 | 143 |
United States treasuries [Member] | Quoted prices in active markets for identical assets (Level 1) [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Total pension plan assets | 63 | 143 |
United States treasuries [Member] | Other observable inputs (Level 2) [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Total pension plan assets | 0 | 0 |
United States treasuries [Member] | Unobservable inputs (Level 3) [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Total pension plan assets | 0 | 0 |
Real Estate Securities [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Total pension plan assets | 220 | 124 |
Real Estate Securities [Member] | Quoted prices in active markets for identical assets (Level 1) [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Total pension plan assets | 214 | 119 |
Real Estate Securities [Member] | Other observable inputs (Level 2) [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Total pension plan assets | 0 | 0 |
Real Estate Securities [Member] | Unobservable inputs (Level 3) [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Total pension plan assets | 6 | 5 |
Equity Securities [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Total pension plan assets | 141 | 104 |
Equity Securities [Member] | Quoted prices in active markets for identical assets (Level 1) [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Total pension plan assets | 141 | 104 |
Equity Securities [Member] | Other observable inputs (Level 2) [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Total pension plan assets | 0 | 0 |
Equity Securities [Member] | Unobservable inputs (Level 3) [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Total pension plan assets | 0 | 0 |
Cash Equivalents [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Total pension plan assets | 187 | 140 |
Cash Equivalents [Member] | Quoted prices in active markets for identical assets (Level 1) [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Total pension plan assets | 6 | 7 |
Cash Equivalents [Member] | Other observable inputs (Level 2) [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Total pension plan assets | 181 | 133 |
Cash Equivalents [Member] | Unobservable inputs (Level 3) [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Total pension plan assets | 0 | 0 |
Exchange Traded Funds [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Total pension plan assets | 47 | 40 |
Exchange Traded Funds [Member] | Quoted prices in active markets for identical assets (Level 1) [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Total pension plan assets | 47 | 40 |
Exchange Traded Funds [Member] | Other observable inputs (Level 2) [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Total pension plan assets | 0 | 0 |
Exchange Traded Funds [Member] | Unobservable inputs (Level 3) [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Total pension plan assets | 0 | 0 |
Other Pension Plan Assets [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Total pension plan assets | 98 | 40 |
Other Pension Plan Assets [Member] | Quoted prices in active markets for identical assets (Level 1) [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Total pension plan assets | 0 | 3 |
Other Pension Plan Assets [Member] | Other observable inputs (Level 2) [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Total pension plan assets | 4 | 1 |
Other Pension Plan Assets [Member] | Unobservable inputs (Level 3) [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Total pension plan assets | $94 | $36 |
Retirement_Benefits_Plans_Reti2
Retirement Benefits Plans Retirement Benefits Plans - Fair Value of Other Postretirement Benefits Plan Assets (Details 12) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Fair Value of Other Postretirement Benefits Plan Assets [Line Items] | ' | ' |
Global equities | $70 | $75 |
Fixed income securities | 29 | 29 |
United States treasuries | 38 | 38 |
Cash equivalents | 1 | 4 |
Total other postretirement benefits plan assets | 138 | 146 |
Quoted prices in active markets for identical assets (Level 1) [Member] | ' | ' |
Fair Value of Other Postretirement Benefits Plan Assets [Line Items] | ' | ' |
Global equities | 0 | 0 |
Fixed income securities | 0 | 0 |
United States treasuries | 38 | 38 |
Cash equivalents | 1 | 4 |
Total other postretirement benefits plan assets | 39 | 42 |
Other observable inputs (Level 2) [Member] | ' | ' |
Fair Value of Other Postretirement Benefits Plan Assets [Line Items] | ' | ' |
Global equities | 70 | 75 |
Fixed income securities | 29 | 29 |
United States treasuries | 0 | 0 |
Cash equivalents | 0 | 0 |
Total other postretirement benefits plan assets | 99 | 104 |
Unobservable inputs (Level 3) [Member] | ' | ' |
Fair Value of Other Postretirement Benefits Plan Assets [Line Items] | ' | ' |
Global equities | 0 | 0 |
Fixed income securities | 0 | 0 |
United States treasuries | 0 | 0 |
Cash equivalents | 0 | 0 |
Total other postretirement benefits plan assets | $0 | $0 |
Retirement_Benefits_Plans_Reti3
Retirement Benefits Plans Retirement Benefits Plans - Defined Contribution Plans (Details 13) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Defined Contribution Plans [Line Items] | ' | ' | ' |
Employer contributions to defined contribution plans | $121 | $74 | $65 |
Commitments_and_Contingencies_1
Commitments and Contingencies (Details) | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||
In Millions, unless otherwise specified | Dec. 31, 2012 | Dec. 31, 2010 | Dec. 31, 2010 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Sep. 28, 2012 | Aug. 19, 2011 | Jun. 09, 2011 |
USD ($) | USD ($) | BRL | USD ($) | BRL | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | |
Loss Contingency Accrual [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Raysul total loss contingency accrual | ' | ' | ' | $32 | 76 | ' | ' | ' | ' | ' |
Raysul loss contingency provision | ' | 25 | 60 | 7 | 16 | ' | ' | ' | ' | ' |
Loss Contingencies [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Meritor judgment motion denial zero damages and no injuctive relief | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 |
Final judgment of Eaton's liability by US District Court in Meritor lawsuit | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' |
Court of Appeals Third District judgment reversal in favor of Meritor | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' |
Meritor, plaintiffs' damages expert's low range | ' | ' | ' | 475 | ' | ' | ' | ' | ' | ' |
Meritor, plaintiffs' damages expert's high range | ' | ' | ' | 800 | ' | ' | ' | ' | ' | ' |
Meritor, Eaton's damages expert, damages | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' |
Frisby Parties damages claim | ' | ' | ' | 376 | ' | ' | ' | ' | ' | ' |
Environmental contingencies | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of environmental remediation sites world wide | ' | ' | ' | 149 | 149 | ' | ' | ' | ' | ' |
Accrual for environmental loss contingencies | 158 | ' | ' | 149 | ' | 158 | ' | ' | ' | ' |
Current and long-term warranty accruals [Table] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Balance at January 1 | ' | ' | ' | 185 | ' | 158 | 153 | ' | ' | ' |
Provision | ' | ' | ' | 107 | ' | 85 | 98 | ' | ' | ' |
Settled | ' | ' | ' | -99 | ' | -84 | -94 | ' | ' | ' |
Product Warranty Accrual Other | ' | ' | ' | -4 | ' | 26 | 1 | ' | ' | ' |
Balance at December 31 | 185 | 153 | ' | 189 | ' | 185 | 158 | ' | ' | ' |
Product Warranty Accruals - Other, related to the acquisition of Cooper Industries plc | 24 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Minimum rental commitments under noncancelable operating leases | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2014 | ' | ' | ' | 185 | ' | ' | ' | ' | ' | ' |
2015 | ' | ' | ' | 144 | ' | ' | ' | ' | ' | ' |
2016 | ' | ' | ' | 100 | ' | ' | ' | ' | ' | ' |
2017 | ' | ' | ' | 72 | ' | ' | ' | ' | ' | ' |
2018 | ' | ' | ' | 57 | ' | ' | ' | ' | ' | ' |
Thereafter | ' | ' | ' | 92 | ' | ' | ' | ' | ' | ' |
Total noncancelable lease commitments | ' | ' | ' | 650 | ' | ' | ' | ' | ' | ' |
Summary of Rental Expense | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Rental expense | ' | ' | ' | $241 | ' | $199 | $194 | ' | ' | ' |
Income_Taxes_Income_Before_Inc
Income Taxes Income Before Income Taxes (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Before Income Taxes [Line Items] | ' | ' | ' |
Total income before income taxes | $1,884 | $1,251 | $1,553 |
Ireland | ' | ' | ' |
Income Before Income Taxes [Line Items] | ' | ' | ' |
Total income before income taxes | 184 | 0 | 0 |
Foreign | ' | ' | ' |
Income Before Income Taxes [Line Items] | ' | ' | ' |
Total income before income taxes | $1,700 | $1,251 | $1,553 |
Income_Taxes_Income_Tax_Expens
Income Taxes Income Tax Expense (Benefit) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Current Income Tax Expense (Benefit) [Abstract] | ' | ' | ' |
Total current income tax expense | $357 | $136 | $273 |
Deferred Income Tax Expense (Benefit) [Abstract] | ' | ' | ' |
Total deferred income tax benefit | -346 | -105 | -72 |
Income tax expense | 11 | 31 | 201 |
Ireland | ' | ' | ' |
Current Income Tax Expense (Benefit) [Abstract] | ' | ' | ' |
Ireland | 17 | 0 | 0 |
United States - Federal | ' | ' | ' |
Current Income Tax Expense (Benefit) [Abstract] | ' | ' | ' |
United States - Federal | 89 | 1 | 85 |
Deferred Income Tax Expense (Benefit) [Abstract] | ' | ' | ' |
United States - Federal | -295 | 39 | -2 |
United States - State and local | ' | ' | ' |
Current Income Tax Expense (Benefit) [Abstract] | ' | ' | ' |
United States - State and local | 7 | 5 | 2 |
Deferred Income Tax Expense (Benefit) [Abstract] | ' | ' | ' |
United States - State and local | -23 | 2 | 8 |
Foreign - other | ' | ' | ' |
Current Income Tax Expense (Benefit) [Abstract] | ' | ' | ' |
Foreign - other | 244 | 130 | 186 |
Deferred Income Tax Expense (Benefit) [Abstract] | ' | ' | ' |
Foreign - other | ($28) | ($146) | ($78) |
Income_Taxes_Reconciliations_o
Income Taxes Reconciliations of Income Taxes from the Appropriate Statutory Rate (Details) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Reconciliation of income taxes from appropriate statutory rate to the consolidated effective income tax rate [Line Items] | ' | ' | ' |
Effective income tax rate reconciliation, at Ireland statutory income tax rate, percent | 25.00% | ' | ' |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | ' | 35.00% | 35.00% |
Income taxes at the applicable statutory rate | 25.00% | 35.00% | 35.00% |
Effective income tax expense rate | 0.60% | 2.50% | 12.90% |
Ireland | ' | ' | ' |
Reconciliation of income taxes from appropriate statutory rate to the consolidated effective income tax rate [Line Items] | ' | ' | ' |
Ireland tax on trading income | -1.40% | 0.00% | 0.00% |
United States operations [Member] | ' | ' | ' |
Reconciliation of income taxes from appropriate statutory rate to the consolidated effective income tax rate [Line Items] | ' | ' | ' |
United States income (loss) | -2.80% | 0.00% | 0.00% |
State and local income taxes | -0.50% | 0.60% | 0.20% |
Deductible dividends | 0.00% | -0.70% | -0.50% |
Deductible interest | -0.30% | -0.80% | -0.50% |
Credit for research activities | -2.00% | 0.00% | -1.00% |
Impact of U.S. Health Care Reform and Education Reconciliation Act and pre-funding on taxation associated with Medicare Part D | 0.00% | 0.00% | -0.90% |
Other | 2.10% | 2.70% | 0.50% |
Other foreign operations [Member] | ' | ' | ' |
Reconciliation of income taxes from appropriate statutory rate to the consolidated effective income tax rate [Line Items] | ' | ' | ' |
Other | 0.20% | ' | ' |
United States foreign tax credit | -1.80% | ' | ' |
Other foreign operations (earnings taxed at other than the applicable statutory tax rate) | -17.60% | ' | ' |
Non-United States Operations [Member] | ' | ' | ' |
Reconciliation of income taxes from appropriate statutory rate to the consolidated effective income tax rate [Line Items] | ' | ' | ' |
Other | ' | 0.00% | 0.00% |
United States foreign tax credit | ' | -12.40% | -2.30% |
Other foreign operations (earnings taxed at other than the applicable statutory tax rate) | ' | -14.90% | -15.50% |
Worldwide Operations [Member] | ' | ' | ' |
Reconciliation of income taxes from appropriate statutory rate to the consolidated effective income tax rate [Line Items] | ' | ' | ' |
Adjustments to tax liabilities | -1.10% | -5.70% | -0.80% |
Adjustments to valuation allowance | 0.80% | -1.30% | -1.30% |
Effective Income Tax Rate [Member] | ' | ' | ' |
Reconciliation of income taxes from appropriate statutory rate to the consolidated effective income tax rate [Line Items] | ' | ' | ' |
Effective income tax expense rate | 0.60% | 2.50% | 12.90% |
Income_Taxes_Worldwide_Income_
Income Taxes Worldwide Income Tax Payments (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Worldwide Income Tax Payments [Line Items] | ' | ' | ' |
Income taxes paid | $272 | $254 | $191 |
Income_Taxes_Components_of_cur
Income Taxes Components of current and long-term deferred income taxes (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Deferred Tax Assets and Liabilities [Line Items] | ' | ' |
Deferred tax liabilities included in other current liabilities | ' | $49 |
Current assets and liabilities [Member] | ' | ' |
Deferred Tax Assets, Tax Deferred Expense, Reserves and Accruals [Abstract] | ' | ' |
Employee benefits | 116 | 92 |
Depreciation and amortization | -2 | -3 |
Other accruals and adjustments | 497 | 495 |
Deferred Tax Assets, Net, Classification [Abstract] | ' | ' |
Other items | 0 | 0 |
United States federal income tax loss carryforwards | 0 | 0 |
United States federal income tax credit carryforward | 0 | 0 |
United States state and local tax loss carryforwards and tax credit carryforwards | 0 | 0 |
Other foreign tax loss carryforward | 0 | 0 |
Other foreign income tax credit carryforwards | 0 | 0 |
Valuation allowance for income tax loss and income tax credit carryforwards | 0 | -61 |
Other valuation allowance | -34 | -7 |
Total deferred income taxes | 577 | 516 |
Long-term assets and liabilities [Member] | ' | ' |
Deferred Tax Assets, Tax Deferred Expense, Reserves and Accruals [Abstract] | ' | ' |
Employee benefits | 657 | 857 |
Depreciation and amortization | -2,294 | -2,793 |
Other accruals and adjustments | 368 | 297 |
Deferred Tax Assets, Net, Classification [Abstract] | ' | ' |
Other items | 0 | 145 |
United States federal income tax loss carryforwards | 0 | 6 |
United States federal income tax credit carryforward | 161 | 156 |
United States state and local tax loss carryforwards and tax credit carryforwards | 73 | 71 |
Other foreign tax loss carryforward | 1,708 | 1,591 |
Other foreign income tax credit carryforwards | 63 | 67 |
Valuation allowance for income tax loss and income tax credit carryforwards | -1,738 | -1,521 |
Other valuation allowance | -71 | -71 |
Total deferred income taxes | ($1,073) | ($1,195) |
Income_Taxes_Operating_Loss_an
Income Taxes Operating Loss and Tax Credit Carryforwards, United States, By Expiration Dates (Details) (USD $) | Dec. 31, 2013 |
In Millions, unless otherwise specified | |
2014 through 2018 [Member] | ' |
Operating Loss and Tax Credit Carry Forward [Line Items] | ' |
United States federal income tax loss carryforwards | $1 |
United States federal income tax credit carryforwards | 3 |
2019 through 2023 [Member] | ' |
Operating Loss and Tax Credit Carry Forward [Line Items] | ' |
United States federal income tax loss carryforwards | 0 |
United States federal income tax credit carryforwards | 70 |
2024 through 2028 [Member] | ' |
Operating Loss and Tax Credit Carry Forward [Line Items] | ' |
United States federal income tax loss carryforwards | 0 |
United States federal income tax credit carryforwards | 0 |
2029 through 2033 [Member] | ' |
Operating Loss and Tax Credit Carry Forward [Line Items] | ' |
United States federal income tax loss carryforwards | 0 |
United States federal income tax credit carryforwards | 69 |
Not subject to expiration [Member] | ' |
Operating Loss and Tax Credit Carry Forward [Line Items] | ' |
United States federal income tax loss carryforwards | 0 |
United States federal income tax credit carryforwards | 19 |
Valuation allowance [Member] | ' |
Operating Loss and Tax Credit Carry Forward [Line Items] | ' |
United States federal income tax loss carryforwards | 0 |
United States federal income tax credit carryforwards | ($51) |
Income_Taxes_Income_Tax_Loss_a
Income Taxes Income Tax Loss and Tax Credit Carryforwards, State and Local, Net of Federal Tax Effect, By Expiration Dates (Details) (USD $) | Dec. 31, 2013 |
In Millions, unless otherwise specified | |
2014 through 2018 [Member] | ' |
Income Tax Loss and Tax Credit Carryforwards, State and Local, Net of Federal Tax Effect [Line Items] | ' |
United States state and local assets for income tax loss carryforwards - net of federal tax effect | $4 |
United States and local income tax credit carryforward - net of federal tax effect | 11 |
2019 through 2023 [Member] | ' |
Income Tax Loss and Tax Credit Carryforwards, State and Local, Net of Federal Tax Effect [Line Items] | ' |
United States state and local assets for income tax loss carryforwards - net of federal tax effect | 15 |
United States and local income tax credit carryforward - net of federal tax effect | 9 |
2024 through 2028 [Member] | ' |
Income Tax Loss and Tax Credit Carryforwards, State and Local, Net of Federal Tax Effect [Line Items] | ' |
United States state and local assets for income tax loss carryforwards - net of federal tax effect | 13 |
United States and local income tax credit carryforward - net of federal tax effect | 7 |
2029 through 2033 [Member] | ' |
Income Tax Loss and Tax Credit Carryforwards, State and Local, Net of Federal Tax Effect [Line Items] | ' |
United States state and local assets for income tax loss carryforwards - net of federal tax effect | 5 |
United States and local income tax credit carryforward - net of federal tax effect | 3 |
Not subject to expiration [Member] | ' |
Income Tax Loss and Tax Credit Carryforwards, State and Local, Net of Federal Tax Effect [Line Items] | ' |
United States state and local assets for income tax loss carryforwards - net of federal tax effect | 0 |
United States and local income tax credit carryforward - net of federal tax effect | 6 |
Valuation allowance [Member] | ' |
Income Tax Loss and Tax Credit Carryforwards, State and Local, Net of Federal Tax Effect [Line Items] | ' |
United States state and local assets for income tax loss carryforwards - net of federal tax effect | -15 |
United States and local income tax credit carryforward - net of federal tax effect | ($16) |
Income_Taxes_Income_Tax_Loss_a1
Income Taxes Income Tax Loss and Tax Credit Carryforwards, Non-United States Subsidiaries, By Expiration Dates (Details) (USD $) | Dec. 31, 2013 |
In Millions, unless otherwise specified | |
2014 through 2018 [Member] | ' |
Income Tax Loss and Tax Credit Carryforwards, Non-United States Subsidiaries, By Expiration Dates [Line Items] | ' |
Other foreign income tax loss carryforwards | $136 |
Other foreign deferred income tax assets for income tax loss carryforwards | 35 |
Other foreign income tax credit carryforwards | 39 |
2019 through 2023 [Member] | ' |
Income Tax Loss and Tax Credit Carryforwards, Non-United States Subsidiaries, By Expiration Dates [Line Items] | ' |
Other foreign income tax loss carryforwards | 130 |
Other foreign deferred income tax assets for income tax loss carryforwards | 32 |
Other foreign income tax credit carryforwards | 13 |
2024 through 2028 [Member] | ' |
Income Tax Loss and Tax Credit Carryforwards, Non-United States Subsidiaries, By Expiration Dates [Line Items] | ' |
Other foreign income tax loss carryforwards | 48 |
Other foreign deferred income tax assets for income tax loss carryforwards | 14 |
Other foreign income tax credit carryforwards | 2 |
2029 through 2033 [Member] | ' |
Income Tax Loss and Tax Credit Carryforwards, Non-United States Subsidiaries, By Expiration Dates [Line Items] | ' |
Other foreign income tax loss carryforwards | 18 |
Other foreign deferred income tax assets for income tax loss carryforwards | 5 |
Other foreign income tax credit carryforwards | 0 |
Not subject to expiration [Member] | ' |
Income Tax Loss and Tax Credit Carryforwards, Non-United States Subsidiaries, By Expiration Dates [Line Items] | ' |
Other foreign income tax loss carryforwards | 7,654 |
Other foreign deferred income tax assets for income tax loss carryforwards | 1,622 |
Other foreign income tax credit carryforwards | 9 |
Valuation allowance [Member] | ' |
Income Tax Loss and Tax Credit Carryforwards, Non-United States Subsidiaries, By Expiration Dates [Line Items] | ' |
Other foreign income tax loss carryforwards | 0 |
Other foreign deferred income tax assets for income tax loss carryforwards | -1,646 |
Other foreign income tax credit carryforwards | ($10) |
Income_Taxes_Summary_of_Gross_
Income Taxes Summary of Gross Unrecognized Income Tax Benefits (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Gross Unrecognized Income Tax Benefits [Line Items] | ' | ' | ' |
Balance at January 1 | $444 | $236 | $224 |
Increases and decreases as a result of positions taken during prior years | ' | ' | ' |
Transfers from valuation allowances | 13 | 0 | 0 |
Other increases | 7 | 1 | 3 |
Other decreases, including currency translation | -7 | 0 | -14 |
Balances related to acquired businesses | 2 | 177 | 2 |
Increases as a result of positions taken during the current year | 35 | 36 | 31 |
Decreases relating to settlements with tax authorities | -6 | 0 | -2 |
Decreases as a result of a lapse of the applicable statute of limitations | -9 | -6 | -8 |
Balance at December 31 | $479 | $444 | $236 |
Income_Taxes_Income_Taxes_Text
Income Taxes Income Taxes Textuals (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Income Taxes [Abstract] | ' | ' | ' |
Income tax expense | $11,000,000 | $31,000,000 | $201,000,000 |
Effective income tax rate expense rate | 0.60% | 2.50% | 12.90% |
Extension of tax credit for research activities | 39,000,000 | ' | ' |
Undistributed earnings of United States and other foreign subsidiaries where no provision has been made | 10,500,000,000 | ' | ' |
Deferred tax liabilities included in other current liabilities | ' | 49,000,000 | ' |
Unrecognized tax benefits that would impact effective tax rate | 371,000,000 | ' | ' |
Income tax examination, penalties and interest accrued | 114,000,000 | 99,000,000 | ' |
Change in Unrecognized Tax Benefits is Reasonably Possible, Estimated Range of Change, Lower Bound | 35,000,000 | ' | ' |
Change in Unrecognized Tax Benefits is Reasonably Possible, Estimated Range of Change, Upper Bound | 43,000,000 | ' | ' |
IRS Statutory Notice of Deficiency proposed assessment of additional taxes | 75,000,000 | ' | ' |
Penalties associated with IRS Statutory Notice of Deficiency proposed assessment | $52,000,000 | ' | ' |
Brazilian first administrative appeal level reduction of assessed penatlites | 50.00% | ' | ' |
Recoverability of Deferred Income Tax Assets [Abstract] | ' | ' | ' |
Number of years of cumulative pretax income in a particular jurisdiction to determine deferred tax assets will not be recognized | 'three | ' | ' |
Number of years of cumulative pretax losses in particular jurisdiction to determine if deferred tax assets can be recognized | 'three | ' | ' |
Number of years estimated to resolve Brazilian tax assessment | 10 | ' | ' |
Eaton_Shareholders_Equity_Eato
Eaton Shareholders' Equity Eaton Shareholders' Equity - Other Comprehensive Income (Loss) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Equity [Abstract] | ' | ' | ' |
Currency translation and related hedging instuments pre-tax | ($30) | $144 | ($252) |
Currency translation and related hedging instruments after-tax | -28 | 135 | -241 |
Pension and Other Postretirement Benefits [Abstract] | ' | ' | ' |
Prior service cost arising during the year pre-tax | -6 | -1 | -5 |
Prior service cost arising during the year after-tax | -4 | -1 | -4 |
Net gain (loss) arising during the year pre-tax | 456 | -386 | -648 |
Net gain (loss) arising during the year after-tax | 277 | -262 | -417 |
Currency translation pre-tax | -5 | -15 | 5 |
Currency translation after-tax | -4 | -12 | 4 |
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Adjustment, before Tax | 2 | -2 | 0 |
Other Comprehensive Income (Loss), Reclassification, Pension and Other Postretirement Benefit Plans, Net Gain (Loss) Recognized in Net Periodic Benefit Cost, Net of Tax | 16 | 15 | -15 |
Amortization of actuarial loss and prior service costs reclassified to earnings pre-tax | 229 | 170 | 122 |
Amortization of actuarial loss and prior service costs reclassified to earnings after-tax | 144 | 108 | 79 |
Total pensions and other postretirement benefits included in other comprehensive income (loss), pre-tax | -676 | 234 | 526 |
Total pensions and other postretirement benefits included in other comprehensive income (loss), after-tax | -429 | 152 | 353 |
Other Accumulated Comprehensive Income (Loss) Cash Flow Hedges | ' | ' | ' |
Gain (loss) on derivatives designated as cash flow hedges pre-tax | 6 | 10 | -28 |
Gain (loss) on derivatives designated as cash flow hedges after-tax | 3 | 10 | -21 |
Changes in cash flow hedges reclassified to earnings pre-tax | 0 | 7 | 0 |
Changes in cash flow hedges reclassified to earnings after-tax | 0 | 7 | -1 |
Cash flow hedges, net of reclassification adjustments pre-tax | 6 | 17 | -28 |
Cash flow hedges, net of reclassification adjustments after-tax | 3 | 17 | -22 |
Other comprehensive income (loss) attributable to Eaton ordinary shareholders pre-tax | 652 | -73 | -806 |
Other comprehensive income (loss) attributable to Eaton ordinary shareholders after-tax | $404 | $0 | ($616) |
Eaton_Shareholders_Equity_Eato1
Eaton Shareholders' Equity Eaton Shareholders' Equity - Accumulated Other Comprehensive Income (Loss) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Changes in accumulated other comprehensive income (loss) [Line Items] | ' | ' | ' |
Balance at December 31 | ($1,560) | ($1,964) | ' |
Amounts reclassified from Accumulated other comprehensive (loss) income | 144 | ' | ' |
Net current-period other comprehensive (loss) income | 404 | 0 | -616 |
Currency translation and related hedging instruments [Member] | ' | ' | ' |
Changes in accumulated other comprehensive income (loss) [Line Items] | ' | ' | ' |
Balance at December 31 | -395 | -367 | ' |
Other comprehensive (loss) income before reclassifications | -28 | ' | ' |
Amounts reclassified from Accumulated other comprehensive (loss) income | 0 | ' | ' |
Net current-period other comprehensive (loss) income | -28 | ' | ' |
Pensions and Other Postretirement Benefits [Member] | ' | ' | ' |
Changes in accumulated other comprehensive income (loss) [Line Items] | ' | ' | ' |
Balance at December 31 | -1,170 | -1,599 | ' |
Other comprehensive (loss) income before reclassifications | 285 | ' | ' |
Amounts reclassified from Accumulated other comprehensive (loss) income | 144 | ' | ' |
Net current-period other comprehensive (loss) income | 429 | ' | ' |
Cash Flow Hedges [Member] | ' | ' | ' |
Changes in accumulated other comprehensive income (loss) [Line Items] | ' | ' | ' |
Balance at December 31 | 5 | 2 | ' |
Other comprehensive (loss) income before reclassifications | 3 | ' | ' |
Amounts reclassified from Accumulated other comprehensive (loss) income | 0 | ' | ' |
Net current-period other comprehensive (loss) income | 3 | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Member] | ' | ' | ' |
Changes in accumulated other comprehensive income (loss) [Line Items] | ' | ' | ' |
Balance at December 31 | -1,560 | -1,964 | ' |
Other comprehensive (loss) income before reclassifications | 260 | ' | ' |
Amounts reclassified from Accumulated other comprehensive (loss) income | 144 | ' | ' |
Net current-period other comprehensive (loss) income | $404 | ' | ' |
Eaton_Shareholders_Equity_Eato2
Eaton Shareholders' Equity Eaton Shareholders' Equity - Reclassifications Out of Accumulated Other Comprehensive Income (Loss) (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ' | |
Defined Benefit Plan, Actuarial Gain (Loss) | ($229) | [1] |
Amortization of defined benefit pension reclassifications before tax | -229 | |
Tax (expense) benefit on amortization of defined benefit pension items | 85 | |
Net amortization of defined benefit items after tax | -144 | |
Gain and losses on cash flow hedges | 0 | |
Accumulated Other Comprehensve Gain Cash Flow Hedges Income Tax Expense | 0 | |
Cash Flow Hedge Gain (Loss) Reclassified to Earnings, Net, After Tax | 0 | |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | -144 | |
Interest Expense [Member] | ' | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ' | |
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, before Tax | -1 | |
Cost of Sales [Member] | ' | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ' | |
Currency exchange contracts | 2 | |
Commodity contracts | ($1) | |
[1] | These components of Accumulated other comprehensive loss are included in the computation of net periodic pension cost. See Note 6 for additional information about defined benefit pension items. |
Eaton_Shareholders_Equity_Eato3
Eaton Shareholders' Equity Eaton Shareholders' Equity - Net Income per Ordinary Share (Details) (USD $) | 12 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Earnings Per Share Reconciliation [Abstract] | ' | ' | ' |
Net income attributable to Eaton ordinary shareholders | $1,861 | $1,217 | $1,350 |
Weighted-average number of ordinary shares outstanding - diluted | 476.7 | 350.9 | 342.8 |
Less dilutive effect of equity-based compensation | 3.2 | 3.1 | 4.5 |
Weighted-average number of ordinary shares outstanding - basic | 473.5 | 347.8 | 338.3 |
Net income per ordinary share - diluted | $3.90 | $3.46 | $3.93 |
Net income per ordinary share - basic | $3.93 | $3.54 | $3.98 |
Eaton_Shareholders_Equity_Eato4
Eaton Shareholders' Equity Eaton Shareholders' Equity (Textuals) (Details) | 0 Months Ended | 12 Months Ended | ||||||
Feb. 26, 2014 | Sep. 28, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Mar. 21, 2014 | Dec. 31, 2013 | Oct. 22, 2013 | |
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | EUR (€) | ||
Shareholders Equity Textuals Abstract | ' | ' | ' | ' | ' | ' | ' | ' |
Common shares authorized | ' | ' | 750,000,000 | ' | ' | ' | ' | ' |
Eaton Corporation plc ordinary share par value | ' | ' | $0.01 | ' | ' | ' | ' | ' |
Ordinary shares issued and outstanding | ' | ' | 475,100,000 | 470,700,000 | ' | ' | ' | ' |
Deferred ordinary shares authorized | ' | ' | 40,000 | ' | ' | ' | ' | ' |
Deferred ordinary shares par value | ' | ' | ' | ' | ' | ' | € 1 | ' |
Deferred ordinary shares, shares issued and outstanding | ' | ' | 40,000 | 40,000 | ' | ' | ' | ' |
Preferred A Shares authorized | ' | ' | 10,000 | ' | ' | ' | ' | ' |
Preferred A Shares par value | ' | ' | $1 | ' | ' | ' | ' | ' |
Preferred A Shares, Shares Issued | ' | ' | 10,000 | 10,000 | ' | ' | ' | ' |
Preferred A Shares, Shares Outstanding | ' | ' | 10,000 | 10,000 | ' | ' | ' | ' |
Serial preferred shares authorized | ' | ' | 10,000,000 | ' | ' | ' | ' | ' |
Serial preferred share par value per share | ' | ' | $0.01 | ' | ' | ' | ' | ' |
Serial preferred shares, shares issued and outstanding | ' | ' | 0 | 0 | ' | ' | ' | ' |
Number of holders of record of Eaton ordinary shares | ' | ' | 19,538 | ' | ' | ' | ' | ' |
Number of current and former employees who were shareholders through various Eaton plans | ' | ' | 28,128 | ' | ' | ' | ' | ' |
Disclosure of Repurchase Agreements [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' |
2007 common share repurchase program, number of shares authorized to be repurchased | ' | ' | 10,000,000 | ' | ' | ' | ' | ' |
2007 share repurchase program, shares purchased | ' | ' | ' | ' | 8,300,000 | ' | ' | ' |
Payments for stock repurchased under 2007 programs | ' | ' | ' | ' | $343,000,000 | ' | ' | ' |
2011 Retired Stock Repurchase Program, Number of Shares Authorized to be Repurchased | ' | 20,000,000 | ' | ' | ' | ' | ' | ' |
2011 share repurchase program, maximum aggregate purchase price of shares authorized | ' | 1,250,000,000 | ' | ' | ' | ' | ' | ' |
2013 share repurchase program, number of shares authorized to be repurchased | ' | ' | ' | ' | ' | ' | ' | 40,000,000 |
2013 stock repurchase program, authorized repurchase price as percent of Eaton closing share price, low range | ' | ' | ' | ' | ' | ' | ' | 70.00% |
2013 stock repurchase program, authorized repurchase price as percent of Eaton closing share price, high range | ' | ' | ' | ' | ' | ' | ' | 120.00% |
2013 share repurchase program, shares purchased | ' | ' | 0 | ' | ' | ' | ' | ' |
2011 share repurchase progam, shares purchased | ' | ' | ' | 0 | ' | ' | ' | ' |
Quarterly dividends, per share, declared | $0.49 | ' | $1.68 | $1.52 | $1.36 | ' | ' | ' |
Quarterly dividends payable, amount per share | ' | ' | ' | ' | ' | $0.49 | ' | ' |
Employee Trust [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' |
Deferred compensation plan trust of shares and marketable secutities | ' | ' | $24,000,000 | $12,000,000 | ' | ' | ' | ' |
Earnings Per Share, Diluted, Other Disclosures [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | ' | ' | 200,000 | 2,200,000 | 1,500,000 | ' | ' | ' |
Restricted_Stock_Units_and_Awa
Restricted Stock Units and Awards Activity (Details) (USD $) | 12 Months Ended |
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2013 |
Equity-based compensation | ' |
Compensation expense not yet recognized related to non-vested RSUs and RSAs | $111 |
Weighted average period for total compensation expense not yet recognized | 2.2 |
Excess tax benefit for equity-based compensation | $10 |
Number of Restricted Stock Units and Awards | ' |
Equity-based compensation | ' |
Non-vested at January 1 | 3.4 |
Granted | 1.5 |
Vested | -1.3 |
Forfeited | -0.2 |
Non-vested at December 31 | 3.4 |
Weighted-average fair value per unit and award | ' |
Equity-based compensation | ' |
Non-vested at January 1 | $42.47 |
Granted | $57.75 |
Vested | $37.71 |
Forfeited | $50.70 |
Non-vested at December 31 | $51.37 |
EquityBased_Compensation_Infor
Equity-Based Compensation Information Related to Restricted Stock Units and Awards (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Information Related to RSUs and RSAs [Line Items] | ' | ' | ' |
Pretax expense for RSUs and RSAs | $69 | $46 | $50 |
After-tax expense for RSUs and RSAs | $45 | $30 | $32 |
EquityBased_Compensation_Stock
Equity-Based Compensation Stock Options Fair Value Assumptions (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Stock Options Fair Value Assumptions [Line Items] | ' | ' | ' |
Expected volatility | 36.00% | 35.00% | 33.00% |
Expected option life in years | '5 years 6 months | '5 years 6 months | '5 years 6 months |
Expected dividend yield | 2.00% | 2.00% | 2.00% |
Risk-free interest rate minimum | 0.80% | 0.90% | 1.40% |
Risk-free interest rate maximum | 1.50% | 1.00% | 2.20% |
Weighted-average fair value of stock options granted | $17.49 | $14.08 | $14.56 |
Stock option vesting period | '3 years | ' | ' |
Stock option expiration date after date of grant | '10 years | ' | ' |
EquityBased_Compensation_Stock1
Equity-Based Compensation Stock Options Activity (Details) (USD $) | 12 Months Ended |
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2013 |
Equity-based compensation | ' |
Closing price of Eaton ordinary shares on last trading day | $76.12 |
Weighted-average price per option [Member] | ' |
Equity-based compensation | ' |
Outstanding at January 1, 2013 | $39.45 |
Granted | $63.15 |
Exercised | $35.76 |
Forfeited and cancelled | $50.76 |
Outstanding at December, 31 2013 | $43.43 |
Exercisable at December 31, 2013 | $40.05 |
Stock Options [Member] | ' |
Equity-based compensation | ' |
Outstanding at January 1, 2013, shares | 10.8 |
Granted | 0.8 |
Exercised | -3.6 |
Forfeited and cancelled | -0.1 |
Outstanding at December 31, 2013, shares | 7.9 |
Exercisable at December 31, 2012 | 6.4 |
Reserved for future grants at December 31, 2013 | 17.7 |
Weighted-average remaining contractual life in years [Member] | ' |
Equity-based compensation | ' |
Outstanding at December 31, 2013 | '4 years 5 months |
Exercisable at December 31, 2013 | '3 years 5 months |
Aggregate Intrinsic Value [Member] | ' |
Equity-based compensation | ' |
Outstanding at December 31, 2013 | $259 |
Exercisable at December 31, 2013 | $232 |
EquityBased_Compensation_Infor1
Equity-Based Compensation Information Related to Stock Options (Details) (USD $) | 12 Months Ended | ||
In Millions, except Share data in Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Equity-based compensation | ' | ' | ' |
Pretax expense for stock options | $11 | $7 | $5 |
After-tax expense for stock options | 7 | 5 | 4 |
Proceeds from stock options exercised | 121 | 95 | 71 |
Income tax benefit related to stock options exercised | ' | ' | ' |
Tax benefit classified in operating activities in the Consolidated Statements of Cash Flows | 3 | 5 | 13 |
Excess tax benefit classified in financing activities in the Consolidated Statements of Cash Flows | 22 | 13 | 33 |
Intrinsic value of stock options exercised | 102 | 60 | 62 |
Total fair value of stock options vesting | 11 | 7 | 5 |
Stock options exercised, shares | 3,565 | 3,099 | 2,541 |
Non-vested stock option compensation expense not yet recognized | $14 | ' | ' |
Non-vested stock options weighted average period for total compensation expense to be recognized | '2 years | ' | ' |
Fair_Value_Measurements_Detail
Fair Value Measurements (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Summary of financial instruments recognized at fair value and fair value measurement used | ' | ' |
Cash | $915 | $577 |
Short-term investments | 794 | 527 |
Net derivative contracts | -35 | 83 |
Long-term debt converted to floating interest rates by interest rate swaps - net | -39 | 87 |
Quoted prices in active markets for identical assets (Level 1) [Member] | ' | ' |
Summary of financial instruments recognized at fair value and fair value measurement used | ' | ' |
Cash | 915 | 577 |
Short-term investments | 794 | 527 |
Net derivative contracts | 0 | 0 |
Long-term debt converted to floating interest rates by interest rate swaps - net | 0 | 0 |
Other observable inputs (Level 2) [Member] | ' | ' |
Summary of financial instruments recognized at fair value and fair value measurement used | ' | ' |
Cash | 0 | 0 |
Short-term investments | 0 | 0 |
Net derivative contracts | -35 | 83 |
Long-term debt converted to floating interest rates by interest rate swaps - net | -39 | 87 |
Unobservable inputs (Level 3) [Member] | ' | ' |
Summary of financial instruments recognized at fair value and fair value measurement used | ' | ' |
Cash | 0 | 0 |
Short-term investments | 0 | 0 |
Net derivative contracts | 0 | 0 |
Long-term debt converted to floating interest rates by interest rate swaps - net | $0 | $0 |
Fair_Value_Measurements_Fair_V
Fair Value Measurements Fair Value Measurements (Details 1) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Summary of carrying value of short-term investments | ' | ' |
Time deposits, certificate of deposits and demand deposits with banks | $279 | $293 |
Money market investments | 512 | 228 |
Other | 3 | 6 |
Total short-term investments | $794 | $527 |
Fair_Value_Measurements_Fair_V1
Fair Value Measurements Fair Value Measurements (Details Textuals) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Fair Value Measurements Textuals Abstract | ' | ' |
Long-term debt and current portion of long term debt, carrying value | $9,536 | $10,079 |
Long-term debt and current portion of long-term debt, fair value | $9,665 | $10,796 |
Derivative_Financial_Instrumen2
Derivative Financial Instruments and Hedging Activities Fixed-to-Floating Interest Rate Swaps (Details) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2013 |
Notes due 2014 [Member] | ' |
Derivative [Line Items] | ' |
Notional amount | $100 |
Derivative, Fixed Interest Rate | 5.95% |
Derivative, Variable Interest Rate | 2.98% |
Basis for contracted floating interest rate paid | '6 month LIBOR + 2.60% |
Notes due 2017 [Member] | ' |
Derivative [Line Items] | ' |
Notional amount | 150 |
Derivative, Fixed Interest Rate | 5.30% |
Derivative, Variable Interest Rate | 4.43% |
Basis for contracted floating interest rate paid | '1 month LIBOR + 4.26% |
Senior notes due 2017 [Member] | ' |
Derivative [Line Items] | ' |
Notional amount | 450 |
Derivative, Fixed Interest Rate | 1.50% |
Derivative, Variable Interest Rate | 0.62% |
Basis for contracted floating interest rate paid | '1 month LIBOR + 0.45% |
Notes due 2018 [Member] | ' |
Derivative [Line Items] | ' |
Notional amount | 415 |
Derivative, Fixed Interest Rate | 5.60% |
Derivative, Variable Interest Rate | 3.54% |
Basis for contracted floating interest rate paid | '6 month LIBOR + 3.18% |
Notes due 2019 [Member] | ' |
Derivative [Line Items] | ' |
Notional amount | 300 |
Derivative, Fixed Interest Rate | 6.95% |
Derivative, Variable Interest Rate | 5.32% |
Basis for contracted floating interest rate paid | '3 month LIBOR + 5.07% |
Debentures due 2019 [Member] | ' |
Derivative [Line Items] | ' |
Notional amount | 25 |
Derivative, Fixed Interest Rate | 8.88% |
Derivative, Variable Interest Rate | 4.26% |
Basis for contracted floating interest rate paid | '6 month LIBOR + 3.84% |
Debentures due 2020 [Member] | ' |
Derivative [Line Items] | ' |
Notional amount | 150 |
Derivative, Fixed Interest Rate | 3.88% |
Derivative, Variable Interest Rate | 2.29% |
Basis for contracted floating interest rate paid | '1 month LIBOR + 2.12% |
Notes due 2021 [Member] | ' |
Derivative [Line Items] | ' |
Notional amount | 150 |
Derivative, Fixed Interest Rate | 3.47% |
Derivative, Variable Interest Rate | 2.01% |
Basis for contracted floating interest rate paid | '1 month LIBOR + 1.84% |
Senior notes due 2022 [Member] | ' |
Derivative [Line Items] | ' |
Notional amount | 1,100 |
Derivative, Fixed Interest Rate | 2.75% |
Derivative, Variable Interest Rate | 0.71% |
Basis for contracted floating interest rate paid | '1 month LIBOR + 0.54% |
Notes due 2023 [Member] | ' |
Derivative [Line Items] | ' |
Notional amount | 150 |
Derivative, Fixed Interest Rate | 3.68% |
Derivative, Variable Interest Rate | 1.22% |
Basis for contracted floating interest rate paid | '1 month LIBOR + 1.06% |
Debentures due 2024 [Member] | ' |
Derivative [Line Items] | ' |
Notional amount | 25 |
Derivative, Fixed Interest Rate | 7.63% |
Derivative, Variable Interest Rate | 2.84% |
Basis for contracted floating interest rate paid | '6 month LIBOR + 2.48% |
Debentures due 2029 [Member] | ' |
Derivative [Line Items] | ' |
Notional amount | 50 |
Derivative, Fixed Interest Rate | 7.65% |
Derivative, Variable Interest Rate | 2.92% |
Basis for contracted floating interest rate paid | '6 month LIBOR + 2.57% |
Debentures due 2034 [Member] | ' |
Derivative [Line Items] | ' |
Notional amount | $25 |
Derivative, Fixed Interest Rate | 5.45% |
Derivative, Variable Interest Rate | 0.64% |
Basis for contracted floating interest rate paid | '6 month LIBOR + 0.28% |
Derivative_Financial_Instrumen3
Derivative Financial Instruments and Hedging Activities Floating-to-Fixed Interest Rate Swaps (Details) (Floating rate notes due 2014 [Member], USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2013 |
Floating rate notes due 2014 [Member] | ' |
Derivative [Line Items] | ' |
Notional amount | $300 |
Floating interest rate received on swaps | 0.24% |
Fixed interest rate paid on swaps | 0.76% |
Basis for contracted floating interest rate paid | '3 month LIBOR |
Derivative_Financial_Instrumen4
Derivative Financial Instruments and Hedging Activities (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Other current assets [Member] | ' | ' |
Derivatives designated as hedges | ' | ' |
Derivative asset designated as hedging instrument | $13 | $11 |
Derivatives not designated as hedges | ' | ' |
Other current assets | 22 | 24 |
Other long-term assets [Member] | ' | ' |
Derivatives designated as hedges | ' | ' |
Derivative asset designated as hedging instrument | 36 | 85 |
Other current liabilities [Member] | ' | ' |
Derivatives designated as hedges | ' | ' |
Derivative liability designated as hedging instrument | 4 | 4 |
Derivatives not designated as hedges | ' | ' |
Other current liabilities | 26 | 31 |
Other long-term liabilites [Member] | ' | ' |
Derivatives designated as hedges | ' | ' |
Derivative liability designated as hedging instrument | 76 | 2 |
Japanese Yen notes due 2018 [Member] | Non-derivative net investment hedge [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Debt denominated in foreign currency designated as non-derivative net investment hedging instrument | 95 | 116 |
Designated as Hedging Instrument [Member] | Fair Value Hedging [Member] | Fixed-to-floating interest rate swaps | ' | ' |
Derivatives designated as hedges | ' | ' |
Derivative, Notional Amount | 3,090 | 1,290 |
Period of derivatives designated as hedges | '3 months to 20 years | '6 months to 21 years |
Designated as Hedging Instrument [Member] | Fair Value Hedging [Member] | Fixed-to-floating interest rate swaps | Other current assets [Member] | ' | ' |
Derivatives designated as hedges | ' | ' |
Derivative asset designated as hedging instrument | 1 | 2 |
Designated as Hedging Instrument [Member] | Fair Value Hedging [Member] | Fixed-to-floating interest rate swaps | Other long-term assets [Member] | ' | ' |
Derivatives designated as hedges | ' | ' |
Derivative asset designated as hedging instrument | 36 | 85 |
Designated as Hedging Instrument [Member] | Fair Value Hedging [Member] | Fixed-to-floating interest rate swaps | Other current liabilities [Member] | ' | ' |
Derivatives designated as hedges | ' | ' |
Derivative liability designated as hedging instrument | 0 | 0 |
Designated as Hedging Instrument [Member] | Fair Value Hedging [Member] | Fixed-to-floating interest rate swaps | Other long-term liabilites [Member] | ' | ' |
Derivatives designated as hedges | ' | ' |
Derivative liability designated as hedging instrument | 76 | 0 |
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Floating-to-fixed interest rate swaps | ' | ' |
Derivatives designated as hedges | ' | ' |
Derivative, Notional Amount | 300 | 300 |
Period of derivatives designated as hedges | '6 months | '1 year |
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Floating-to-fixed interest rate swaps | Other current assets [Member] | ' | ' |
Derivatives designated as hedges | ' | ' |
Derivative asset designated as hedging instrument | 0 | 0 |
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Floating-to-fixed interest rate swaps | Other long-term assets [Member] | ' | ' |
Derivatives designated as hedges | ' | ' |
Derivative asset designated as hedging instrument | 0 | 0 |
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Floating-to-fixed interest rate swaps | Other current liabilities [Member] | ' | ' |
Derivatives designated as hedges | ' | ' |
Derivative liability designated as hedging instrument | 1 | 0 |
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Floating-to-fixed interest rate swaps | Other long-term liabilites [Member] | ' | ' |
Derivatives designated as hedges | ' | ' |
Derivative liability designated as hedging instrument | 0 | 2 |
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Currency exchange contracts | ' | ' |
Derivatives designated as hedges | ' | ' |
Derivative, Notional Amount | 393 | 451 |
Period of derivatives designated as hedges | '12 to 36 months | '12 to 36 months |
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Currency exchange contracts | Other current assets [Member] | ' | ' |
Derivatives designated as hedges | ' | ' |
Derivative asset designated as hedging instrument | 12 | 9 |
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Currency exchange contracts | Other long-term assets [Member] | ' | ' |
Derivatives designated as hedges | ' | ' |
Derivative asset designated as hedging instrument | 0 | 0 |
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Currency exchange contracts | Other current liabilities [Member] | ' | ' |
Derivatives designated as hedges | ' | ' |
Derivative liability designated as hedging instrument | 3 | 4 |
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Currency exchange contracts | Other long-term liabilites [Member] | ' | ' |
Derivatives designated as hedges | ' | ' |
Derivative liability designated as hedging instrument | 0 | 0 |
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Commodity contracts | ' | ' |
Derivatives designated as hedges | ' | ' |
Derivative, Notional Amount | 1 | 17 |
Period of derivatives designated as hedges | '12 months | '12 months |
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Commodity contracts | Other current assets [Member] | ' | ' |
Derivatives designated as hedges | ' | ' |
Derivative asset designated as hedging instrument | 0 | 0 |
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Commodity contracts | Other long-term assets [Member] | ' | ' |
Derivatives designated as hedges | ' | ' |
Derivative asset designated as hedging instrument | 0 | 0 |
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Commodity contracts | Other current liabilities [Member] | ' | ' |
Derivatives designated as hedges | ' | ' |
Derivative liability designated as hedging instrument | 0 | 0 |
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Commodity contracts | Other long-term liabilites [Member] | ' | ' |
Derivatives designated as hedges | ' | ' |
Derivative liability designated as hedging instrument | 0 | 0 |
Not Designated as Hedging Instrument [Member] | Currency exchange contracts | ' | ' |
Derivatives designated as hedges | ' | ' |
Derivative, Notional Amount | 4,277 | 4,997 |
Derivatives not designated as hedges | ' | ' |
Period of derivatives not designated as hedges | '12 months | '12 months |
Not Designated as Hedging Instrument [Member] | Currency exchange contracts | Other current assets [Member] | ' | ' |
Derivatives not designated as hedges | ' | ' |
Other current assets | 22 | 23 |
Not Designated as Hedging Instrument [Member] | Currency exchange contracts | Other current liabilities [Member] | ' | ' |
Derivatives not designated as hedges | ' | ' |
Other current liabilities | 26 | 31 |
Not Designated as Hedging Instrument [Member] | Commodity contracts | ' | ' |
Derivatives designated as hedges | ' | ' |
Derivative, Notional Amount | ' | 19 |
Derivatives not designated as hedges | ' | ' |
Period of derivatives not designated as hedges | ' | '12 months |
Not Designated as Hedging Instrument [Member] | Commodity contracts | Other current assets [Member] | ' | ' |
Derivatives not designated as hedges | ' | ' |
Other current assets | ' | 1 |
Not Designated as Hedging Instrument [Member] | Commodity contracts | Other current liabilities [Member] | ' | ' |
Derivatives not designated as hedges | ' | ' |
Other current liabilities | ' | $0 |
Amounts_Recognized_in_Accumula
Amounts Recognized in Accumulated Other Comprehensive Loss (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Derivative Instruments and Hedging Activities (Textuals) [Abstract] | ' | ' |
Eaton's target percentage of managing intercompany balance sheet exposure | 100.00% | ' |
Cash Flow Hedging [Member] | ' | ' |
Amounts recognized in accumulated other comprehensive income | ' | ' |
Gain (loss) recognized in Accumulated other comprehensive loss | $6 | $10 |
Cost of products sold and Interest expense - net [Member] | Cash Flow Hedging [Member] | ' | ' |
Amounts recognized in accumulated other comprehensive income | ' | ' |
Gain (loss) reclassified from Accumulated other comprehensive loss | 0 | -7 |
Floating-to-fixed interest rate swaps | Cash Flow Hedging [Member] | ' | ' |
Amounts recognized in accumulated other comprehensive income | ' | ' |
Gain (loss) recognized in Accumulated other comprehensive loss | 0 | -3 |
Floating-to-fixed interest rate swaps | Cost of products sold and Interest expense - net [Member] | Cash Flow Hedging [Member] | ' | ' |
Amounts recognized in accumulated other comprehensive income | ' | ' |
Gain (loss) reclassified from Accumulated other comprehensive loss | -1 | -1 |
Currency exchange contracts | Cash Flow Hedging [Member] | ' | ' |
Amounts recognized in accumulated other comprehensive income | ' | ' |
Gain (loss) recognized in Accumulated other comprehensive loss | 6 | 12 |
Currency exchange contracts | Cost of products sold and Interest expense - net [Member] | Cash Flow Hedging [Member] | ' | ' |
Amounts recognized in accumulated other comprehensive income | ' | ' |
Gain (loss) reclassified from Accumulated other comprehensive loss | 2 | 1 |
Commodity contracts | Cash Flow Hedging [Member] | ' | ' |
Amounts recognized in accumulated other comprehensive income | ' | ' |
Gain (loss) recognized in Accumulated other comprehensive loss | 0 | 1 |
Commodity contracts | Cost of products sold and Interest expense - net [Member] | Cash Flow Hedging [Member] | ' | ' |
Amounts recognized in accumulated other comprehensive income | ' | ' |
Gain (loss) reclassified from Accumulated other comprehensive loss | ($1) | ($7) |
Derivative_Financial_Instrumen5
Derivative Financial Instruments and Hedging Activities Amounts Recognized in Net income (Details) (Interest expense - net [Member], Fair Value Hedging [Member], USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Derivative designated as fair value hedges | $0 | $0 |
Interest Rate Contract [Member] | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Derivative designated as fair value hedges | -126 | 21 |
Related Long Term Debt Converted To Floating Interest Rates By Interest Rate Swaps [Member] | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Derivative designated as fair value hedges | $126 | ($21) |
Accounts_Receivable_and_Invent2
Accounts Receivable and Inventory (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Accounts Receivable And Inventory (Textuals) [Abstract] | ' | ' |
Allowance for doubtful accounts receivable | $79 | $85 |
Percentage of inventory at FIFO accounted for using the LIFO method | 45.00% | 43.00% |
Inventory Disclosure [Abstract] | ' | ' |
Raw materials | 955 | 915 |
Work-in-process | 428 | 423 |
Finished goods | 1,115 | 1,131 |
Inventory at FIFO | 2,498 | 2,469 |
Excess of FIFO over LIFO cost | -116 | -133 |
Total inventory | $2,382 | $2,336 |
Business_Segment_and_Geographi2
Business Segment and Geographic Region Information (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Business Segment Information | ' | ' | ' |
Net sales | $22,046 | $16,311 | $16,049 |
Segment operating profit | 3,178 | 2,216 | 2,260 |
Amortization of intangible assets | -437 | -195 | -190 |
Interest expense - net | -271 | -208 | -118 |
Pension and other postretirement benefits expense | -183 | -162 | -142 |
Inventory step-up adjustment | -34 | -42 | -5 |
Other corporate expense - net | -369 | -358 | -252 |
Income before income taxes | 1,884 | 1,251 | 1,553 |
Income tax expense | 11 | 31 | 201 |
Net income | 1,873 | 1,220 | 1,352 |
Less net income for noncontrolling interests | -12 | -3 | -2 |
Net income attributable to Eaton ordinary shareholders | 1,861 | 1,217 | 1,350 |
Business segment acquisition integration pretax charges | 117 | 33 | 14 |
Total business acquisition transaction cost | 9 | 178 | 0 |
Entity-wide revenue, major customer, amount | 0 | 0 | 0 |
Corporate, Non-Segment [Member] | ' | ' | ' |
Business Segment Information | ' | ' | ' |
Corporate acquisition integration charges | 37 | 11 | 0 |
Electrical Products [Member] | ' | ' | ' |
Business Segment Information | ' | ' | ' |
Net sales | 7,026 | 3,846 | 3,619 |
Segment operating profit | 1,090 | 640 | 531 |
Business segment acquisition integration pretax charges | 44 | 4 | 1 |
Hydraulics [Member] | ' | ' | ' |
Business Segment Information | ' | ' | ' |
Net sales | 2,981 | 2,960 | 2,835 |
Segment operating profit | 355 | 369 | 438 |
Business segment acquisition integration pretax charges | 36 | 16 | 4 |
Aerospace [Member] | ' | ' | ' |
Business Segment Information | ' | ' | ' |
Net sales | 1,774 | 1,719 | 1,648 |
Segment operating profit | 252 | 213 | 244 |
All Segments [Member] | ' | ' | ' |
Business Segment Information | ' | ' | ' |
Business segment acquisition integration pretax charges | 117 | 33 | 14 |
Electrical Systems and Services [Member] | ' | ' | ' |
Business Segment Information | ' | ' | ' |
Net sales | 6,430 | 3,872 | 3,557 |
Segment operating profit | 889 | 424 | 352 |
Business segment acquisition integration pretax charges | 37 | 13 | 9 |
Vehicle [Member] | ' | ' | ' |
Business Segment Information | ' | ' | ' |
Net sales | 3,835 | 3,914 | 4,390 |
Segment operating profit | $592 | $570 | $695 |
Business_Segment_and_Geographi3
Business Segment and Geographic Region Information Business Segment and Geographic Region Information (Details 1) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Segment Reporting Information [Line Items] | ' | ' | ' |
Total assets | $35,491 | $35,810 | $17,873 |
Goodwill | 14,495 | 14,443 | 5,537 |
Other intangible assets | 7,186 | 7,580 | 2,192 |
Capital expenditures for property, plant and equipment | 614 | 593 | 568 |
Depreciation of property, plant and equipment | 516 | 381 | 367 |
Electrical Products [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Total assets | 3,204 | 3,338 | 1,653 |
Goodwill | 7,189 | 7,117 | ' |
Capital expenditures for property, plant and equipment | 152 | 108 | 76 |
Depreciation of property, plant and equipment | 151 | 78 | 74 |
Electrical Systems and Services [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Total assets | 2,683 | 2,408 | 1,242 |
Goodwill | 4,517 | 4,520 | ' |
Capital expenditures for property, plant and equipment | 113 | 47 | 41 |
Depreciation of property, plant and equipment | 86 | 42 | 37 |
Hydraulics [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Total assets | 1,362 | 1,426 | 1,265 |
Goodwill | 1,385 | 1,404 | ' |
Capital expenditures for property, plant and equipment | 80 | 60 | 70 |
Depreciation of property, plant and equipment | 65 | 61 | 54 |
Aerospace [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Total assets | 852 | 806 | 754 |
Goodwill | 1,048 | 1,045 | ' |
Capital expenditures for property, plant and equipment | 29 | 27 | 21 |
Depreciation of property, plant and equipment | 27 | 26 | 26 |
Vehicle [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Total assets | 1,716 | 1,698 | 1,783 |
Goodwill | 356 | 357 | ' |
Capital expenditures for property, plant and equipment | 161 | 148 | 172 |
Depreciation of property, plant and equipment | 133 | 136 | 147 |
All Segments [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Total assets | 9,817 | 9,676 | 6,697 |
Capital expenditures for property, plant and equipment | 535 | 390 | 380 |
Depreciation of property, plant and equipment | 462 | 343 | 338 |
Corporate [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Total assets | 3,993 | 4,111 | 3,447 |
Capital expenditures for property, plant and equipment | 79 | 203 | 188 |
Depreciation of property, plant and equipment | $54 | $38 | $29 |
Business_Segment_and_Geographi4
Business Segment and Geographic Region Information Business Segment and Geographic Region Information (Details 2) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' |
Net sales | $22,046 | $16,311 | $16,049 |
Net property, plant and equipment | 3,833 | 3,786 | 2,602 |
United States | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' |
Net sales | 11,092 | 7,789 | 7,165 |
Net property, plant and equipment | 1,966 | 1,914 | 1,227 |
Canada | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' |
Net sales | 1,154 | 918 | 815 |
Net property, plant and equipment | 28 | 33 | 27 |
Latin America [Member] | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' |
Net sales | 2,113 | 1,588 | 1,952 |
Net property, plant and equipment | 331 | 346 | 247 |
Europe [Member] | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' |
Net sales | 5,112 | 3,997 | 4,092 |
Net property, plant and equipment | 856 | 845 | 649 |
Asia Pacific [Member] | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' |
Net sales | 2,575 | 2,019 | 2,025 |
Net property, plant and equipment | $652 | $648 | $452 |
Condensed_Consolidating_Financ2
Condensed Consolidating Financial Statements Consolidating Statements of Comprehensive Income (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Condensed Income Statements, Captions [Line Items] | ' | ' | ' |
Net sales | $22,046 | $16,311 | $16,049 |
Cost of products sold | 15,369 | 11,448 | 11,261 |
Selling and administrative expense | 3,886 | 2,894 | 2,738 |
Research and development expense | 644 | 439 | 417 |
Interest expense (income) - net | 271 | 208 | 118 |
Other expense (income) - net | -8 | 71 | -38 |
Equity in (earnings) loss of subsidiaries, net of tax | 0 | 0 | 0 |
Intercompany expense (income) - net | 0 | 0 | 0 |
Income before income taxes | 1,884 | 1,251 | 1,553 |
Income tax (benefit) expense | 11 | 31 | 201 |
Net income | 1,873 | 1,220 | 1,352 |
Less net income for noncontrolling interests | -12 | -3 | -2 |
Net income attributable to Eaton ordinary shareholders | 1,861 | 1,217 | 1,350 |
Other comprehensive income (loss) attributable to Eaton ordinary shareholders | 404 | 0 | -616 |
Total comprehensive (loss) income attributable to Eaton ordinary shareholders | 2,265 | 1,217 | 734 |
Eaton Corporation plc [Member] | ' | ' | ' |
Condensed Income Statements, Captions [Line Items] | ' | ' | ' |
Net sales | 0 | 0 | ' |
Cost of products sold | 0 | 0 | ' |
Selling and administrative expense | 32 | 0 | ' |
Research and development expense | 0 | 0 | ' |
Interest expense (income) - net | 0 | 0 | ' |
Other expense (income) - net | 0 | 0 | ' |
Equity in (earnings) loss of subsidiaries, net of tax | -2,147 | -1,219 | ' |
Intercompany expense (income) - net | 254 | 2 | ' |
Income before income taxes | 1,861 | 1,217 | ' |
Income tax (benefit) expense | 0 | 0 | ' |
Net income | 1,861 | 1,217 | ' |
Less net income for noncontrolling interests | 0 | 0 | ' |
Net income attributable to Eaton ordinary shareholders | 1,861 | 1,217 | ' |
Other comprehensive income (loss) attributable to Eaton ordinary shareholders | 404 | 0 | ' |
Total comprehensive (loss) income attributable to Eaton ordinary shareholders | 2,265 | 1,217 | ' |
Eaton Corporation [Member] | ' | ' | ' |
Condensed Income Statements, Captions [Line Items] | ' | ' | ' |
Net sales | 6,695 | 6,680 | 6,294 |
Cost of products sold | 5,227 | 5,115 | 4,865 |
Selling and administrative expense | 1,400 | 1,307 | 1,201 |
Research and development expense | 255 | 230 | 207 |
Interest expense (income) - net | 271 | 229 | 144 |
Other expense (income) - net | 8 | 10 | -18 |
Equity in (earnings) loss of subsidiaries, net of tax | -1,156 | -732 | -1,271 |
Intercompany expense (income) - net | -155 | -237 | -224 |
Income before income taxes | 845 | 758 | 1,390 |
Income tax (benefit) expense | -108 | 24 | 40 |
Net income | 953 | 734 | 1,350 |
Less net income for noncontrolling interests | 0 | 0 | 0 |
Net income attributable to Eaton ordinary shareholders | 953 | 734 | 1,350 |
Other comprehensive income (loss) attributable to Eaton ordinary shareholders | 300 | 290 | -616 |
Total comprehensive (loss) income attributable to Eaton ordinary shareholders | 1,253 | 1,024 | 734 |
Guarantors [Member] | ' | ' | ' |
Condensed Income Statements, Captions [Line Items] | ' | ' | ' |
Net sales | 6,421 | 2,849 | 2,642 |
Cost of products sold | 4,784 | 2,193 | 1,975 |
Selling and administrative expense | 749 | 335 | 295 |
Research and development expense | 200 | 108 | 112 |
Interest expense (income) - net | 28 | 8 | 8 |
Other expense (income) - net | 4 | 48 | -2 |
Equity in (earnings) loss of subsidiaries, net of tax | -1,214 | -1,337 | -61 |
Intercompany expense (income) - net | -479 | 42 | -13 |
Income before income taxes | 2,349 | 1,452 | 328 |
Income tax (benefit) expense | -90 | 0 | 89 |
Net income | 2,439 | 1,452 | 239 |
Less net income for noncontrolling interests | 0 | 0 | 0 |
Net income attributable to Eaton ordinary shareholders | 2,439 | 1,452 | 239 |
Other comprehensive income (loss) attributable to Eaton ordinary shareholders | 481 | -1,976 | -64 |
Total comprehensive (loss) income attributable to Eaton ordinary shareholders | 2,920 | -524 | 175 |
Other Subsidiaries [Member] | ' | ' | ' |
Condensed Income Statements, Captions [Line Items] | ' | ' | ' |
Net sales | 13,579 | 10,346 | 10,520 |
Cost of products sold | 10,010 | 7,708 | 7,822 |
Selling and administrative expense | 1,705 | 1,252 | 1,242 |
Research and development expense | 189 | 101 | 98 |
Interest expense (income) - net | -22 | -29 | -34 |
Other expense (income) - net | -20 | 13 | -18 |
Equity in (earnings) loss of subsidiaries, net of tax | -813 | -611 | 0 |
Intercompany expense (income) - net | 380 | 193 | 237 |
Income before income taxes | 2,150 | 1,719 | 1,173 |
Income tax (benefit) expense | 207 | 6 | 74 |
Net income | 1,943 | 1,713 | 1,099 |
Less net income for noncontrolling interests | -9 | -3 | -1 |
Net income attributable to Eaton ordinary shareholders | 1,934 | 1,710 | 1,098 |
Other comprehensive income (loss) attributable to Eaton ordinary shareholders | 363 | -1,621 | -302 |
Total comprehensive (loss) income attributable to Eaton ordinary shareholders | 2,297 | 89 | 796 |
Consolidating Adjustments [Member] | ' | ' | ' |
Condensed Income Statements, Captions [Line Items] | ' | ' | ' |
Net sales | -4,649 | -3,564 | -3,407 |
Cost of products sold | -4,652 | -3,568 | -3,401 |
Selling and administrative expense | 0 | 0 | 0 |
Research and development expense | 0 | 0 | 0 |
Interest expense (income) - net | -6 | 0 | 0 |
Other expense (income) - net | 0 | 0 | 0 |
Equity in (earnings) loss of subsidiaries, net of tax | 5,330 | 3,899 | 1,332 |
Intercompany expense (income) - net | 0 | 0 | 0 |
Income before income taxes | -5,321 | -3,895 | -1,338 |
Income tax (benefit) expense | 2 | 1 | -2 |
Net income | -5,323 | -3,896 | -1,336 |
Less net income for noncontrolling interests | -3 | 0 | -1 |
Net income attributable to Eaton ordinary shareholders | -5,326 | -3,896 | -1,337 |
Other comprehensive income (loss) attributable to Eaton ordinary shareholders | -1,144 | 3,307 | 366 |
Total comprehensive (loss) income attributable to Eaton ordinary shareholders | ($6,470) | ($589) | ($971) |
Condensed_Consolidating_Financ3
Condensed Consolidating Financial Statements Condensed Consolidating Balance Sheets (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Nov. 20, 2012 | Nov. 14, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
In Millions, unless otherwise specified | ||||||
Condensed Consolidating Balance Sheets [Line Items] | ' | ' | ' | ' | ' | ' |
Cash | $915 | $577 | ' | ' | $385 | $333 |
Short-term investments | 794 | 527 | ' | ' | ' | ' |
Accounts receivable - net | 3,648 | 3,474 | ' | ' | ' | ' |
Intercompany accounts receivable | 0 | 0 | ' | ' | ' | ' |
Inventory | 2,382 | 2,336 | ' | ' | ' | ' |
Prepaid expenses and other current assets | 992 | 986 | ' | ' | ' | ' |
Total current assets | 8,731 | 7,900 | ' | ' | ' | ' |
Property, plant and equipment - net | 3,833 | 3,786 | ' | ' | 2,602 | ' |
Goodwill | 14,495 | 14,443 | ' | ' | 5,537 | ' |
Other intangible assets | 7,186 | 7,580 | ' | ' | 2,192 | ' |
Deferred income taxes | 240 | 353 | ' | ' | ' | ' |
Investment in subsidiaries | 0 | 0 | ' | ' | ' | ' |
Intercompany loans receivable | 0 | 0 | ' | ' | ' | ' |
Other assets | 1,006 | 1,748 | ' | ' | ' | ' |
Total assets | 35,491 | 35,810 | ' | ' | 17,873 | ' |
Short-term debt | 13 | 757 | ' | ' | ' | ' |
Current portion of long-term debt | 567 | 314 | ' | ' | ' | ' |
Accounts payable | 1,960 | 1,879 | ' | ' | ' | ' |
Intercompany accounts payable | 0 | 0 | ' | ' | ' | ' |
Accrued compensation | 461 | 462 | ' | ' | ' | ' |
Other current liabilities | 1,913 | 2,103 | ' | ' | ' | ' |
Total current liabilities | 4,914 | 5,515 | ' | ' | ' | ' |
Long-term debt | 8,969 | 9,765 | ' | ' | ' | ' |
Pension liabilities | 1,465 | 2,003 | ' | ' | ' | ' |
Other postretirement benefits liabilities | 668 | 742 | ' | ' | ' | ' |
Deferred income taxes | 1,313 | 1,548 | ' | ' | ' | ' |
Intercompany loans payable | 0 | 0 | ' | ' | ' | ' |
Other noncurrent liabilities | 1,299 | 1,059 | ' | ' | ' | ' |
Total noncurrent liabilities | 13,714 | 15,117 | ' | ' | ' | ' |
Eaton shareholders' equity | 16,791 | 15,113 | ' | ' | ' | ' |
Noncontrolling interests | 72 | 65 | ' | ' | ' | ' |
Total equity | 16,863 | 15,178 | ' | ' | 7,492 | 7,403 |
Total liabilities and equity | 35,491 | 35,810 | ' | ' | ' | ' |
Issuance of senior notes | ' | ' | 4,900 | 4,900 | ' | ' |
Eaton and certain other of Eaton's principal 100% owned subsidiaries full and unconditional guarantee of the Senior Notes, on a joint and several basis | ' | ' | 100.00% | ' | ' | ' |
Eaton Corporation plc [Member] | ' | ' | ' | ' | ' | ' |
Condensed Consolidating Balance Sheets [Line Items] | ' | ' | ' | ' | ' | ' |
Cash | 3 | 7 | ' | ' | ' | ' |
Short-term investments | 0 | 0 | ' | ' | ' | ' |
Accounts receivable - net | 0 | 0 | ' | ' | ' | ' |
Intercompany accounts receivable | 5 | 38 | ' | ' | ' | ' |
Inventory | 0 | 0 | ' | ' | ' | ' |
Prepaid expenses and other current assets | 0 | 0 | ' | ' | ' | ' |
Total current assets | 8 | 45 | ' | ' | ' | ' |
Property, plant and equipment - net | 0 | 0 | ' | ' | ' | ' |
Goodwill | 0 | 0 | ' | ' | ' | ' |
Other intangible assets | 0 | 0 | ' | ' | ' | ' |
Deferred income taxes | 0 | 0 | ' | ' | ' | ' |
Investment in subsidiaries | 24,940 | 20,662 | ' | ' | ' | ' |
Intercompany loans receivable | 0 | 0 | ' | ' | ' | ' |
Other assets | 0 | 0 | ' | ' | ' | ' |
Total assets | 24,948 | 20,707 | ' | ' | ' | ' |
Short-term debt | 0 | 0 | ' | ' | ' | ' |
Current portion of long-term debt | 0 | 0 | ' | ' | ' | ' |
Accounts payable | 0 | 0 | ' | ' | ' | ' |
Intercompany accounts payable | 4 | 2 | ' | ' | ' | ' |
Accrued compensation | 0 | 0 | ' | ' | ' | ' |
Other current liabilities | 5 | 0 | ' | ' | ' | ' |
Total current liabilities | 9 | 2 | ' | ' | ' | ' |
Long-term debt | 0 | 0 | ' | ' | ' | ' |
Pension liabilities | 0 | 0 | ' | ' | ' | ' |
Other postretirement benefits liabilities | 0 | 0 | ' | ' | ' | ' |
Deferred income taxes | 0 | 0 | ' | ' | ' | ' |
Intercompany loans payable | 8,148 | 5,592 | ' | ' | ' | ' |
Other noncurrent liabilities | 0 | 0 | ' | ' | ' | ' |
Total noncurrent liabilities | 8,148 | 5,592 | ' | ' | ' | ' |
Eaton shareholders' equity | 16,791 | 15,113 | ' | ' | ' | ' |
Noncontrolling interests | 0 | 0 | ' | ' | ' | ' |
Total equity | 16,791 | 15,113 | ' | ' | ' | ' |
Total liabilities and equity | 24,948 | 20,707 | ' | ' | ' | ' |
Eaton Corporation [Member] | ' | ' | ' | ' | ' | ' |
Condensed Consolidating Balance Sheets [Line Items] | ' | ' | ' | ' | ' | ' |
Cash | 51 | 54 | ' | ' | 120 | 33 |
Short-term investments | 0 | 25 | ' | ' | ' | ' |
Accounts receivable - net | 473 | 654 | ' | ' | ' | ' |
Intercompany accounts receivable | 471 | 335 | ' | ' | ' | ' |
Inventory | 344 | 341 | ' | ' | ' | ' |
Prepaid expenses and other current assets | 458 | 391 | ' | ' | ' | ' |
Total current assets | 1,797 | 1,800 | ' | ' | ' | ' |
Property, plant and equipment - net | 982 | 934 | ' | ' | ' | ' |
Goodwill | 1,382 | 1,382 | ' | ' | ' | ' |
Other intangible assets | 211 | 231 | ' | ' | ' | ' |
Deferred income taxes | 839 | 941 | ' | ' | ' | ' |
Investment in subsidiaries | 8,853 | 7,678 | ' | ' | ' | ' |
Intercompany loans receivable | 8,019 | 7,650 | ' | ' | ' | ' |
Other assets | 450 | 459 | ' | ' | ' | ' |
Total assets | 22,533 | 21,075 | ' | ' | ' | ' |
Short-term debt | 0 | 753 | ' | ' | ' | ' |
Current portion of long-term debt | 552 | 303 | ' | ' | ' | ' |
Accounts payable | 440 | 424 | ' | ' | ' | ' |
Intercompany accounts payable | 3,751 | 2,794 | ' | ' | ' | ' |
Accrued compensation | 140 | 129 | ' | ' | ' | ' |
Other current liabilities | 547 | 523 | ' | ' | ' | ' |
Total current liabilities | 5,430 | 4,926 | ' | ' | ' | ' |
Long-term debt | 7,693 | 8,398 | ' | ' | ' | ' |
Pension liabilities | 546 | 895 | ' | ' | ' | ' |
Other postretirement benefits liabilities | 402 | 454 | ' | ' | ' | ' |
Deferred income taxes | 0 | 0 | ' | ' | ' | ' |
Intercompany loans payable | 2,113 | 1,401 | ' | ' | ' | ' |
Other noncurrent liabilities | 652 | 440 | ' | ' | ' | ' |
Total noncurrent liabilities | 11,406 | 11,588 | ' | ' | ' | ' |
Eaton shareholders' equity | 5,697 | 4,561 | ' | ' | ' | ' |
Noncontrolling interests | 0 | 0 | ' | ' | ' | ' |
Total equity | 5,697 | 4,561 | ' | ' | ' | ' |
Total liabilities and equity | 22,533 | 21,075 | ' | ' | ' | ' |
Guarantors [Member] | ' | ' | ' | ' | ' | ' |
Condensed Consolidating Balance Sheets [Line Items] | ' | ' | ' | ' | ' | ' |
Cash | 10 | 14 | ' | ' | 3 | 6 |
Short-term investments | 134 | 38 | ' | ' | ' | ' |
Accounts receivable - net | 922 | 393 | ' | ' | ' | ' |
Intercompany accounts receivable | 3,368 | 4,683 | ' | ' | ' | ' |
Inventory | 609 | 602 | ' | ' | ' | ' |
Prepaid expenses and other current assets | 175 | 245 | ' | ' | ' | ' |
Total current assets | 5,218 | 5,975 | ' | ' | ' | ' |
Property, plant and equipment - net | 761 | 777 | ' | ' | ' | ' |
Goodwill | 6,350 | 6,350 | ' | ' | ' | ' |
Other intangible assets | 3,996 | 4,094 | ' | ' | ' | ' |
Deferred income taxes | 3 | 0 | ' | ' | ' | ' |
Investment in subsidiaries | 40,776 | 21,912 | ' | ' | ' | ' |
Intercompany loans receivable | 2,518 | 13,262 | ' | ' | ' | ' |
Other assets | 186 | 124 | ' | ' | ' | ' |
Total assets | 59,808 | 52,494 | ' | ' | ' | ' |
Short-term debt | 0 | 0 | ' | ' | ' | ' |
Current portion of long-term debt | 0 | 8 | ' | ' | ' | ' |
Accounts payable | 380 | 344 | ' | ' | ' | ' |
Intercompany accounts payable | 3,288 | 3,099 | ' | ' | ' | ' |
Accrued compensation | 37 | 74 | ' | ' | ' | ' |
Other current liabilities | 400 | 411 | ' | ' | ' | ' |
Total current liabilities | 4,105 | 3,936 | ' | ' | ' | ' |
Long-term debt | 1,266 | 1,331 | ' | ' | ' | ' |
Pension liabilities | 131 | 232 | ' | ' | ' | ' |
Other postretirement benefits liabilities | 171 | 189 | ' | ' | ' | ' |
Deferred income taxes | 1,303 | 1,397 | ' | ' | ' | ' |
Intercompany loans payable | 18,207 | 14,857 | ' | ' | ' | ' |
Other noncurrent liabilities | 162 | 157 | ' | ' | ' | ' |
Total noncurrent liabilities | 21,240 | 18,163 | ' | ' | ' | ' |
Eaton shareholders' equity | 34,463 | 30,395 | ' | ' | ' | ' |
Noncontrolling interests | 0 | 0 | ' | ' | ' | ' |
Total equity | 34,463 | 30,395 | ' | ' | ' | ' |
Total liabilities and equity | 59,808 | 52,494 | ' | ' | ' | ' |
Other Subsidiaries [Member] | ' | ' | ' | ' | ' | ' |
Condensed Consolidating Balance Sheets [Line Items] | ' | ' | ' | ' | ' | ' |
Cash | 851 | 502 | ' | ' | 262 | 294 |
Short-term investments | 660 | 464 | ' | ' | ' | ' |
Accounts receivable - net | 2,253 | 2,427 | ' | ' | ' | ' |
Intercompany accounts receivable | 4,470 | 3,887 | ' | ' | ' | ' |
Inventory | 1,466 | 1,432 | ' | ' | ' | ' |
Prepaid expenses and other current assets | 350 | 341 | ' | ' | ' | ' |
Total current assets | 10,050 | 9,053 | ' | ' | ' | ' |
Property, plant and equipment - net | 2,090 | 2,075 | ' | ' | ' | ' |
Goodwill | 6,763 | 6,711 | ' | ' | ' | ' |
Other intangible assets | 2,979 | 3,255 | ' | ' | ' | ' |
Deferred income taxes | 145 | 195 | ' | ' | ' | ' |
Investment in subsidiaries | 8,473 | 6,931 | ' | ' | ' | ' |
Intercompany loans receivable | 18,776 | 14,125 | ' | ' | ' | ' |
Other assets | 370 | 1,165 | ' | ' | ' | ' |
Total assets | 49,646 | 43,510 | ' | ' | ' | ' |
Short-term debt | 13 | 4 | ' | ' | ' | ' |
Current portion of long-term debt | 15 | 3 | ' | ' | ' | ' |
Accounts payable | 1,140 | 1,111 | ' | ' | ' | ' |
Intercompany accounts payable | 1,271 | 3,048 | ' | ' | ' | ' |
Accrued compensation | 284 | 259 | ' | ' | ' | ' |
Other current liabilities | 965 | 1,173 | ' | ' | ' | ' |
Total current liabilities | 3,688 | 5,598 | ' | ' | ' | ' |
Long-term debt | 16 | 36 | ' | ' | ' | ' |
Pension liabilities | 788 | 876 | ' | ' | ' | ' |
Other postretirement benefits liabilities | 95 | 99 | ' | ' | ' | ' |
Deferred income taxes | 757 | 934 | ' | ' | ' | ' |
Intercompany loans payable | 845 | 13,187 | ' | ' | ' | ' |
Other noncurrent liabilities | 485 | 462 | ' | ' | ' | ' |
Total noncurrent liabilities | 2,986 | 15,594 | ' | ' | ' | ' |
Eaton shareholders' equity | 42,906 | 22,263 | ' | ' | ' | ' |
Noncontrolling interests | 66 | 55 | ' | ' | ' | ' |
Total equity | 42,972 | 22,318 | ' | ' | ' | ' |
Total liabilities and equity | 49,646 | 43,510 | ' | ' | ' | ' |
Consolidating Adjustments [Member] | ' | ' | ' | ' | ' | ' |
Condensed Consolidating Balance Sheets [Line Items] | ' | ' | ' | ' | ' | ' |
Cash | 0 | 0 | ' | ' | 0 | 0 |
Short-term investments | 0 | 0 | ' | ' | ' | ' |
Accounts receivable - net | 0 | 0 | ' | ' | ' | ' |
Intercompany accounts receivable | -8,314 | -8,943 | ' | ' | ' | ' |
Inventory | -37 | -39 | ' | ' | ' | ' |
Prepaid expenses and other current assets | 9 | 9 | ' | ' | ' | ' |
Total current assets | -8,342 | -8,973 | ' | ' | ' | ' |
Property, plant and equipment - net | 0 | 0 | ' | ' | ' | ' |
Goodwill | 0 | 0 | ' | ' | ' | ' |
Other intangible assets | 0 | 0 | ' | ' | ' | ' |
Deferred income taxes | -747 | -783 | ' | ' | ' | ' |
Investment in subsidiaries | -83,042 | -57,183 | ' | ' | ' | ' |
Intercompany loans receivable | -29,313 | -35,037 | ' | ' | ' | ' |
Other assets | 0 | 0 | ' | ' | ' | ' |
Total assets | -121,444 | -101,976 | ' | ' | ' | ' |
Short-term debt | 0 | 0 | ' | ' | ' | ' |
Current portion of long-term debt | 0 | 0 | ' | ' | ' | ' |
Accounts payable | 0 | 0 | ' | ' | ' | ' |
Intercompany accounts payable | -8,314 | -8,943 | ' | ' | ' | ' |
Accrued compensation | 0 | 0 | ' | ' | ' | ' |
Other current liabilities | -4 | -4 | ' | ' | ' | ' |
Total current liabilities | -8,318 | -8,947 | ' | ' | ' | ' |
Long-term debt | -6 | 0 | ' | ' | ' | ' |
Pension liabilities | 0 | 0 | ' | ' | ' | ' |
Other postretirement benefits liabilities | 0 | 0 | ' | ' | ' | ' |
Deferred income taxes | -747 | -783 | ' | ' | ' | ' |
Intercompany loans payable | -29,313 | -35,037 | ' | ' | ' | ' |
Other noncurrent liabilities | 0 | 0 | ' | ' | ' | ' |
Total noncurrent liabilities | -30,066 | -35,820 | ' | ' | ' | ' |
Eaton shareholders' equity | -83,066 | -57,219 | ' | ' | ' | ' |
Noncontrolling interests | 6 | 10 | ' | ' | ' | ' |
Total equity | -83,060 | -57,209 | ' | ' | ' | ' |
Total liabilities and equity | ($121,444) | ($101,976) | ' | ' | ' | ' |
Condensed_Consolidating_Financ4
Condensed Consolidating Financial Statements Condensed Consolidating Statements of Cash Flows (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Condensed Consolidating Statements of Cash Flows [Line Items] | ' | ' | ' |
Net cash provided by (used in) operating activities | $2,285 | $1,664 | $1,248 |
Capital expenditures for property, plant and equipment | -614 | -593 | -568 |
Cash paid for acquisitions of businesses, net of cash acquired | -9 | -6,936 | -325 |
(Purchases) sales of short-term investments - net | -288 | 603 | 103 |
Loans to affiliates | 0 | 0 | 0 |
Repayments of loans from affiliates | 0 | 0 | 0 |
Proceeds from the sales of businesses | 777 | 3 | 15 |
Other - net | -68 | -49 | -25 |
Net cash (used in) provided by investing activities | -202 | -6,972 | -800 |
Proceeds from borrowings | 9 | 7,156 | 381 |
Payments on borrowings | -1,096 | -1,324 | -78 |
Payments of financing costs | 0 | -117 | -3 |
Proceeds from borrowings from affiliates | 0 | 0 | 0 |
Payments on borrowings from affiliates | 0 | 0 | 0 |
Other intercompany financing activities | 0 | 0 | 0 |
Cash dividends paid | -796 | -512 | -462 |
Cash dividends paid to affiliates | 0 | 0 | 0 |
Exercise of employee stock options | 121 | 95 | 71 |
Issuance (repurchase) of shares | 0 | 159 | -343 |
Excess tax benefit from equity-based compensation | 32 | 21 | 57 |
Other - net | -6 | 2 | -4 |
Net cash provided by (used in) financing activities | -1,736 | 5,480 | -381 |
Effect of currency on cash | -9 | 20 | -15 |
Total increase (decrease) in cash | 338 | 192 | 52 |
Cash at the beginning of the period | 577 | 385 | 333 |
Cash at the end of the period | 915 | 577 | 385 |
Eaton Corporation plc [Member] | ' | ' | ' |
Condensed Consolidating Statements of Cash Flows [Line Items] | ' | ' | ' |
Net cash provided by (used in) operating activities | 104 | -35 | ' |
Capital expenditures for property, plant and equipment | 0 | 0 | ' |
Cash paid for acquisitions of businesses, net of cash acquired | 0 | -6,542 | ' |
(Purchases) sales of short-term investments - net | 0 | 0 | ' |
Loans to affiliates | 0 | 0 | ' |
Repayments of loans from affiliates | 0 | 0 | ' |
Proceeds from the sales of businesses | 0 | 0 | ' |
Other - net | 0 | 0 | ' |
Net cash (used in) provided by investing activities | 0 | -6,542 | ' |
Proceeds from borrowings | 0 | 0 | ' |
Payments on borrowings | 0 | 0 | ' |
Payments of financing costs | ' | 0 | ' |
Proceeds from borrowings from affiliates | 0 | 5 | ' |
Payments on borrowings from affiliates | 0 | -5 | ' |
Other intercompany financing activities | 688 | ' | ' |
Cash dividends paid | -796 | 0 | ' |
Cash dividends paid to affiliates | 0 | 0 | ' |
Exercise of employee stock options | 0 | 0 | ' |
Issuance (repurchase) of shares | ' | 6,584 | ' |
Excess tax benefit from equity-based compensation | 0 | 0 | ' |
Other - net | 0 | 0 | ' |
Net cash provided by (used in) financing activities | -108 | 6,584 | ' |
Effect of currency on cash | 0 | 0 | ' |
Total increase (decrease) in cash | -4 | 7 | ' |
Cash at the beginning of the period | 7 | ' | ' |
Cash at the end of the period | 3 | 7 | ' |
Eaton Corporation [Member] | ' | ' | ' |
Condensed Consolidating Statements of Cash Flows [Line Items] | ' | ' | ' |
Net cash provided by (used in) operating activities | 739 | 1,012 | 613 |
Capital expenditures for property, plant and equipment | -171 | -291 | -249 |
Cash paid for acquisitions of businesses, net of cash acquired | 0 | 0 | -24 |
(Purchases) sales of short-term investments - net | 25 | 175 | 27 |
Loans to affiliates | -535 | -6,693 | -149 |
Repayments of loans from affiliates | 36 | 268 | 100 |
Proceeds from the sales of businesses | 0 | 2 | 1 |
Other - net | -41 | -28 | -24 |
Net cash (used in) provided by investing activities | -686 | -6,567 | -318 |
Proceeds from borrowings | 0 | 7,156 | 379 |
Payments on borrowings | -1,048 | -1,306 | -70 |
Payments of financing costs | ' | -117 | -3 |
Proceeds from borrowings from affiliates | 2,395 | 8,054 | 5,855 |
Payments on borrowings from affiliates | -2,921 | -8,175 | -5,650 |
Other intercompany financing activities | 1,365 | 273 | -42 |
Cash dividends paid | 0 | -512 | -462 |
Cash dividends paid to affiliates | 0 | 0 | 0 |
Exercise of employee stock options | 121 | 95 | 71 |
Issuance (repurchase) of shares | ' | 0 | -343 |
Excess tax benefit from equity-based compensation | 32 | 21 | 57 |
Other - net | 0 | 0 | 0 |
Net cash provided by (used in) financing activities | -56 | 5,489 | -208 |
Effect of currency on cash | 0 | 0 | 0 |
Total increase (decrease) in cash | -3 | -66 | 87 |
Cash at the beginning of the period | 54 | 120 | 33 |
Cash at the end of the period | 51 | 54 | 120 |
Guarantors [Member] | ' | ' | ' |
Condensed Consolidating Statements of Cash Flows [Line Items] | ' | ' | ' |
Net cash provided by (used in) operating activities | 428 | 217 | 171 |
Capital expenditures for property, plant and equipment | -119 | -73 | -39 |
Cash paid for acquisitions of businesses, net of cash acquired | 0 | 11 | -2 |
(Purchases) sales of short-term investments - net | -95 | 210 | 0 |
Loans to affiliates | -545 | 0 | 0 |
Repayments of loans from affiliates | 626 | 0 | 0 |
Proceeds from the sales of businesses | 0 | 0 | 14 |
Other - net | -12 | 2 | -9 |
Net cash (used in) provided by investing activities | -145 | 150 | -36 |
Proceeds from borrowings | 0 | 0 | 0 |
Payments on borrowings | -43 | -16 | 0 |
Payments of financing costs | ' | 0 | 0 |
Proceeds from borrowings from affiliates | 4,260 | 6,425 | 0 |
Payments on borrowings from affiliates | -2,874 | 0 | 0 |
Other intercompany financing activities | -1,630 | -340 | -106 |
Cash dividends paid | 0 | 0 | 0 |
Cash dividends paid to affiliates | 0 | 0 | -32 |
Exercise of employee stock options | 0 | 0 | 0 |
Issuance (repurchase) of shares | ' | -6,425 | 0 |
Excess tax benefit from equity-based compensation | 0 | 0 | 0 |
Other - net | 0 | 0 | 0 |
Net cash provided by (used in) financing activities | -287 | -356 | -138 |
Effect of currency on cash | 0 | 0 | 0 |
Total increase (decrease) in cash | -4 | 11 | -3 |
Cash at the beginning of the period | 14 | 3 | 6 |
Cash at the end of the period | 10 | 14 | 3 |
Other Subsidiaries [Member] | ' | ' | ' |
Condensed Consolidating Statements of Cash Flows [Line Items] | ' | ' | ' |
Net cash provided by (used in) operating activities | 1,067 | 487 | 1,017 |
Capital expenditures for property, plant and equipment | -324 | -229 | -280 |
Cash paid for acquisitions of businesses, net of cash acquired | -9 | -405 | -299 |
(Purchases) sales of short-term investments - net | -218 | 218 | 76 |
Loans to affiliates | -6,215 | -8,054 | -5,855 |
Repayments of loans from affiliates | 5,795 | 8,175 | 5,650 |
Proceeds from the sales of businesses | 777 | 1 | 0 |
Other - net | -15 | -23 | 8 |
Net cash (used in) provided by investing activities | -209 | -317 | -700 |
Proceeds from borrowings | 9 | 0 | 2 |
Payments on borrowings | -5 | -2 | -8 |
Payments of financing costs | ' | 0 | 0 |
Proceeds from borrowings from affiliates | 640 | 263 | 149 |
Payments on borrowings from affiliates | -662 | -263 | -100 |
Other intercompany financing activities | -423 | 67 | 148 |
Cash dividends paid | 0 | 0 | 0 |
Cash dividends paid to affiliates | -53 | -17 | -521 |
Exercise of employee stock options | 0 | 0 | 0 |
Issuance (repurchase) of shares | ' | 0 | 0 |
Excess tax benefit from equity-based compensation | 0 | 0 | 0 |
Other - net | -6 | 2 | -4 |
Net cash provided by (used in) financing activities | -500 | 50 | -334 |
Effect of currency on cash | -9 | 20 | -15 |
Total increase (decrease) in cash | 349 | 240 | -32 |
Cash at the beginning of the period | 502 | 262 | 294 |
Cash at the end of the period | 851 | 502 | 262 |
Consolidating Adjustments [Member] | ' | ' | ' |
Condensed Consolidating Statements of Cash Flows [Line Items] | ' | ' | ' |
Net cash provided by (used in) operating activities | -53 | -17 | -553 |
Capital expenditures for property, plant and equipment | 0 | 0 | 0 |
Cash paid for acquisitions of businesses, net of cash acquired | 0 | 0 | 0 |
(Purchases) sales of short-term investments - net | 0 | 0 | 0 |
Loans to affiliates | 7,295 | 14,747 | 6,004 |
Repayments of loans from affiliates | -6,457 | -8,443 | -5,750 |
Proceeds from the sales of businesses | 0 | 0 | 0 |
Other - net | 0 | 0 | 0 |
Net cash (used in) provided by investing activities | 838 | 6,304 | 254 |
Proceeds from borrowings | 0 | 0 | 0 |
Payments on borrowings | 0 | 0 | 0 |
Payments of financing costs | ' | 0 | 0 |
Proceeds from borrowings from affiliates | -7,295 | -14,747 | -6,004 |
Payments on borrowings from affiliates | 6,457 | 8,443 | 5,750 |
Other intercompany financing activities | 0 | 0 | 0 |
Cash dividends paid | 0 | 0 | 0 |
Cash dividends paid to affiliates | 53 | 17 | 553 |
Exercise of employee stock options | 0 | 0 | 0 |
Issuance (repurchase) of shares | ' | 0 | 0 |
Excess tax benefit from equity-based compensation | 0 | 0 | 0 |
Other - net | 0 | 0 | 0 |
Net cash provided by (used in) financing activities | -785 | -6,287 | 299 |
Effect of currency on cash | 0 | 0 | 0 |
Total increase (decrease) in cash | 0 | 0 | 0 |
Cash at the beginning of the period | 0 | 0 | 0 |
Cash at the end of the period | $0 | $0 | $0 |