Document_and_Entity_Informatio
Document and Entity Information Document (USD $) | 3 Months Ended | |
In Billions, except Share data in Millions, unless otherwise specified | Mar. 31, 2014 | Jun. 30, 2013 |
Entity Information [Line Items] | ' | ' |
Entity Registrant Name | 'Eaton Corp plc | ' |
Trading Symbol | 'ETN | ' |
Entity Central Index Key | '0001551182 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 31-Mar-14 | ' |
Amendment Flag | 'false | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q1 | ' |
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 | ' | $31.20 |
Entity Common Stock, Shares Outstanding | 476.7 | ' |
Consolidated_Statements_of_Inc
Consolidated Statements of Income (USD $) | 3 Months Ended | |
In Millions, except Per Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Income Statement [Abstract] | ' | ' |
Net sales | $5,492 | $5,310 |
Cost of products sold | 3,858 | 3,735 |
Selling and administrative expense | 962 | 958 |
Research and development expense | 162 | 152 |
Interest expense - net | 62 | 75 |
Other income - net | -5 | -10 |
Income before income taxes | 453 | 400 |
Income tax expense | 12 | 20 |
Net income | 441 | 380 |
Less net income for noncontrolling interests | -2 | -2 |
Net income attributable to Eaton ordinary shareholders | $439 | $378 |
Net income per ordinary share | ' | ' |
Diluted | $0.92 | $0.79 |
Basic | $0.92 | $0.80 |
Weighted-average number of ordinary shares outstanding | ' | ' |
Diluted | 478.8 | 475.1 |
Basic | 475.8 | 471.9 |
Cash dividends declared per ordinary share | $0.49 | $0.42 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Net income | $441 | $380 |
Less net income for noncontrolling interests | -2 | -2 |
Net income attributable to Eaton ordinary shareholders | 439 | 378 |
Other comprehensive income, net of tax | ' | ' |
Currency translation and related hedging instruments | -47 | -281 |
Pensions and other postretirement benefits | 50 | 53 |
Cash flow hedges | 0 | -7 |
Other comprehensive income (loss) attributable to Eaton ordinary shareholders | 3 | -235 |
Total comprehensive income attributable to Eaton ordinary shareholders | $442 | $143 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Assets | ' | ' |
Cash | $784 | $915 |
Short-term investments | 360 | 794 |
Accounts receivable - net | 3,889 | 3,648 |
Inventory | 2,532 | 2,382 |
Deferred income taxes | 554 | 577 |
Prepaid expenses and other current assets | 564 | 415 |
Total current assets | 8,683 | 8,731 |
Property, plant and equipment - net | 3,806 | 3,833 |
Other noncurrent assets | ' | ' |
Goodwill | 14,450 | 14,495 |
Other intangible assets | 7,078 | 7,186 |
Deferred income taxes | 257 | 240 |
Other assets | 988 | 1,006 |
Total assets | 35,262 | 35,491 |
Current liabilities | ' | ' |
Short-term debt | 8 | 13 |
Current portion of long-term debt | 316 | 567 |
Accounts payable | 2,076 | 1,960 |
Accrued compensation | 334 | 461 |
Other current liabilities | 2,071 | 1,913 |
Total current liabilities | 4,805 | 4,914 |
Noncurrent liabilities | ' | ' |
Long-term debt | 8,991 | 8,969 |
Pension liabilities | 1,228 | 1,465 |
Other postretirement benefits liabilities | 666 | 668 |
Deferred income taxes | 1,296 | 1,313 |
Other noncurrent liabilities | 1,165 | 1,299 |
Total noncurrent liabilities | 13,346 | 13,714 |
Shareholders' equity | ' | ' |
Eaton shareholders' equity | 17,037 | 16,791 |
Noncontrolling interests | 74 | 72 |
Total equity | 17,111 | 16,863 |
Total liabilities and equity | $35,262 | $35,491 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Cash Flows (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Operating activities | ' | ' |
Net income | $441 | $380 |
Adjustments to reconcile to net cash provided by operating activities | ' | ' |
Depreciation and amortization | 249 | 245 |
Deferred income taxes | -24 | 104 |
Pension and other postretirement benefits expense | 99 | 87 |
Contributions to pension plans | -272 | -208 |
Excess tax benefit from equity-based compensation | -20 | -16 |
Changes in working capital | -370 | -546 |
Other - net | -91 | 54 |
Net cash provided by operating activities | 12 | 100 |
Investing activities | ' | ' |
Capital expenditures for property, plant and equipment | -110 | -122 |
Sales of short-term investments - net | 431 | 132 |
Proceeds from sale of business | 3 | 761 |
Other - net | -20 | 2 |
Net cash provided by investing activities | 304 | 773 |
Financing activities | ' | ' |
Payments on borrowings | -257 | -687 |
Cash dividends paid | -229 | -194 |
Exercise of employee stock options | 23 | 56 |
Excess tax benefit from equity-based compensation | 20 | 16 |
Other - net | 0 | -1 |
Net cash used in financing activities | -443 | -810 |
Effect of currency on cash | -4 | -1 |
Total (decrease) increase in cash | -131 | 62 |
Cash at the beginning of the period | 915 | 577 |
Cash at the end of the period | $784 | $639 |
Basis_of_Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
BASIS OF PRESENTATION | ' |
BASIS OF PRESENTATION | |
The accompanying unaudited condensed consolidated financial statements of Eaton Corporation plc (Eaton or the Company) have been prepared in accordance with generally accepted accounting principles for interim financial information, the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. However, in the opinion of management, all adjustments (consisting of normal recurring accruals) have been made that are necessary for a fair presentation of the condensed consolidated financial statements for the interim periods. | |
This Form 10-Q should be read in conjunction with the consolidated financial statements and related notes included in Eaton’s 2013 Form 10-K. The interim period results are not necessarily indicative of the results to be expected for the full year. Management has evaluated subsequent events through the date this Form 10-Q was filed with the Securities Exchange Commission. | |
Certain prior year amounts have been reclassified to conform to the current year presentation. |
Acquisitions_and_Sale_of_Busin
Acquisitions and Sale of Businesses | 3 Months Ended | ||||||
Mar. 31, 2014 | |||||||
Business Combinations [Abstract] | ' | ||||||
ACQUISITIONS AND SALE OF BUSINESSES | ' | ||||||
ACQUISITIONS AND SALE OF BUSINESSES | |||||||
Eaton's most recently acquired businesses, and the related annual sales prior to acquisition, are summarized below: | |||||||
Acquired businesses | Date of | Business | Annual | ||||
transaction | segment | sales | |||||
Cooper Industries plc (Cooper) | November 30, | Electrical Products; | $5,409 | ||||
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. | 2012 | Electrical Systems and Services | for 2011 | ||||
Rolec Comercial e Industrial S.A. | September 28, | Electrical Systems and Services | $85 for the | ||||
2012 | 12 months | ||||||
ended | |||||||
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 | ||||
A Korean manufacturer of track drive motors, swing drive motors, main control valves and remote control valves for the construction equipment market. | 2012 | for 2011 | |||||
Polimer Kaucuk Sanayi ve Pazarlama A.S. | June 1, | Hydraulics | $335 | ||||
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 | for 2011 | |||||
Gycom Electrical Low-Voltage Power Distribution, Control and Automation | June 1, | Electrical Systems and Services | $24 | ||||
A Swedish electrical low-voltage power distribution, control and automation components business. | 2012 | for 2011 | |||||
See Note 3 for information about acquisition integration charges and transaction costs related to these acquisitions. | |||||||
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 in the second quarter of 2014. |
Acquisition_Integration_and_Re
Acquisition Integration and Restructuring Charges | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Acquisition Integration and Restructuring Charges [Abstract] | ' | |||||||
ACQUISITION INTEGRATION AND RESTRUCTURING CHARGES | ' | |||||||
ACQUISITION INTEGRATION AND RESTRUCTURING CHARGES | ||||||||
Eaton incurs integration charges and transaction costs related to acquired businesses. A summary of these charges follows: | ||||||||
Three months ended | ||||||||
31-Mar | ||||||||
2014 | 2013 | |||||||
Acquisition integration charges | ||||||||
Electrical Products | $ | 29 | $ | 3 | ||||
Electrical Systems and Services | 26 | 5 | ||||||
Hydraulics | 4 | 12 | ||||||
Total business segments | 59 | 20 | ||||||
Corporate | 7 | 6 | ||||||
Total acquisition integration charges | 66 | 26 | ||||||
Transaction costs | ||||||||
Corporate | — | 5 | ||||||
Total transaction costs | — | 5 | ||||||
Total acquisition integration charges and transaction costs before income taxes | $ | 66 | $ | 31 | ||||
Total after income taxes | $ | 44 | $ | 22 | ||||
Per ordinary share - diluted | $ | 0.09 | $ | 0.05 | ||||
Business segment integration charges in the first quarter of 2014 were related primarily to the integration of Cooper. Business segment integration charges in the first quarter of 2013 were related primarily to the integrations of Cooper, Polimer Kaucuk Sanayi ve Pazarlama, Jeil Hydraulics, and Rolec Comercial e Industrial S.A. These 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. | ||||||||
Corporate integration charges in 2014 and 2013 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, 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 were related to the acquisition of Cooper. These charges were included in Selling and administrative expense, Interest expense - net and Other income - 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 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 in 2013 and $41 in the first quarter of 2014, comprised primarily of severance costs. 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 12 for additional information about business segments. As of March 31, 2014 and December 31, 2013, liabilities related to restructuring actions totaled $63 and $32, respectively. | ||||||||
During April 2014, the Company implemented certain restructuring activities in an effort to gain efficiencies in the Vehicle, Hydraulics and Aerospace business segments. These restructuring activities resulted in a charge of $40, comprised primarily of severance costs. |
Goodwill
Goodwill | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||
GOODWILL | ' | |||||||
GOODWILL | ||||||||
A summary of goodwill follows: | ||||||||
March 31, | December 31, | |||||||
2014 | 2013 | |||||||
Electrical Products | $ | 7,153 | $ | 7,189 | ||||
Electrical Systems and Services | 4,508 | 4,517 | ||||||
Hydraulics | 1,384 | 1,385 | ||||||
Aerospace | 1,048 | 1,048 | ||||||
Vehicle | 357 | 356 | ||||||
Total goodwill | $ | 14,450 | $ | 14,495 | ||||
The decrease in goodwill in 2014 was due to currency translation. |
Retirement_Benefits_Plans
Retirement Benefits Plans | 3 Months Ended | |||||||||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | |||||||||||||||||||||||
RETIREMENT BENEFITS PLANS | ' | |||||||||||||||||||||||
RETIREMENT BENEFITS PLANS | ||||||||||||||||||||||||
The components of retirement benefits expense follow: | ||||||||||||||||||||||||
United States | Non-United States | Other postretirement | ||||||||||||||||||||||
pension benefit expense | pension benefit expense | benefits expense | ||||||||||||||||||||||
Three months ended March 31 | ||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||
Service cost | $ | 29 | $ | 32 | $ | 16 | $ | 15 | $ | 4 | $ | 5 | ||||||||||||
Interest cost | 40 | 37 | 22 | 20 | 9 | 9 | ||||||||||||||||||
Expected return on plan assets | (61 | ) | (57 | ) | (25 | ) | (21 | ) | (1 | ) | (2 | ) | ||||||||||||
Amortization | 23 | 33 | 7 | 7 | 2 | 3 | ||||||||||||||||||
31 | 45 | 20 | 21 | 14 | 15 | |||||||||||||||||||
Settlement loss | 34 | 6 | — | — | — | — | ||||||||||||||||||
Total expense | $ | 65 | $ | 51 | $ | 20 | $ | 21 | $ | 14 | $ | 15 | ||||||||||||
Legal_Contingencies
Legal Contingencies | 3 Months Ended |
Mar. 31, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
LEGAL 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 adverse 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 March 31, 2014, the Company has a total accrual of 79 Brazilian Reais related to this matter ($35 based on current exchange rates), comprised of 60 Brazilian Reais recognized in the fourth quarter of 2010 ($27 based on current exchange rates) with an additional 19 Brazilian Reais recognized through March 31, 2014 ($8 based on current exchange rates). 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 may 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 has scheduled a jury trial for the second quarter of 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. |
Income_Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2014 | |
Income Tax Uncertainties [Abstract] | ' |
INCOME TAXES | ' |
INCOME TAXES | |
The effective income tax rate for the first quarter of 2014 was 3% compared to 5% for the first quarter of 2013. The lower effective tax rate in the first quarter of 2014 was primarily attributable to a more favorable geographic mix of income. |
Equity
Equity | 3 Months Ended | |||||||||||||||
Mar. 31, 2014 | ||||||||||||||||
Stockholders' Equity Note [Abstract] | ' | |||||||||||||||
EQUITY | ' | |||||||||||||||
EQUITY | ||||||||||||||||
The changes in Shareholders’ equity follow: | ||||||||||||||||
Eaton | Noncontrolling | Total | ||||||||||||||
shareholders’ | interests | equity | ||||||||||||||
equity | ||||||||||||||||
Balance at December 31, 2013 | $ | 16,791 | $ | 72 | $ | 16,863 | ||||||||||
Net income | 439 | 2 | 441 | |||||||||||||
Other comprehensive income | 3 | — | 3 | |||||||||||||
Cash dividends paid and accrued | (234 | ) | — | (234 | ) | |||||||||||
Issuance of shares under equity-based compensation plans - net | 38 | — | 38 | |||||||||||||
Balance at March 31, 2014 | $ | 17,037 | $ | 74 | $ | 17,111 | ||||||||||
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, 2013 | $ | (395 | ) | $ | (1,170 | ) | $ | 5 | $ | (1,560 | ) | |||||
Other comprehensive (loss) income | (47 | ) | 9 | 1 | (37 | ) | ||||||||||
before reclassifications | ||||||||||||||||
Amounts reclassified from Accumulated other | — | 41 | (1 | ) | 40 | |||||||||||
comprehensive (loss) income | ||||||||||||||||
Net current-period other comprehensive | (47 | ) | 50 | — | 3 | |||||||||||
(loss) income | ||||||||||||||||
Balance at March 31, 2014 | $ | (442 | ) | $ | (1,120 | ) | $ | 5 | $ | (1,557 | ) | |||||
The reclassifications out of Accumulated other comprehensive loss follow: | ||||||||||||||||
Three months ended | Consolidated Statements of | |||||||||||||||
31-Mar-14 | Income classification | |||||||||||||||
Amortization of defined benefit pension items | ||||||||||||||||
Actuarial loss | $ | (66 | ) | 1 | ||||||||||||
Tax benefit | 25 | |||||||||||||||
Total, net of tax | (41 | ) | ||||||||||||||
Loss on cash flow hedges | ||||||||||||||||
Currency exchange contracts | 2 | Cost of products sold | ||||||||||||||
Tax expense | (1 | ) | ||||||||||||||
Total, net of tax | 1 | |||||||||||||||
Total reclassifications for the period | $ | (40 | ) | |||||||||||||
1 These components of Accumulated other comprehensive loss are included in the computation of net periodic pension cost. See Note 5 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 shareholders follows: | ||||||||||||||||
Three months ended | ||||||||||||||||
31-Mar | ||||||||||||||||
(Shares in millions) | 2014 | 2013 | ||||||||||||||
Net income attributable to Eaton ordinary shareholders | $ | 439 | $ | 378 | ||||||||||||
Weighted-average number of ordinary shares outstanding - diluted | 478.8 | 475.1 | ||||||||||||||
Less dilutive effect of equity-based compensation | 3 | 3.2 | ||||||||||||||
Weighted-average number of ordinary shares outstanding - basic | 475.8 | 471.9 | ||||||||||||||
Net income per ordinary share | ||||||||||||||||
Diluted | $ | 0.92 | $ | 0.79 | ||||||||||||
Basic | 0.92 | 0.8 | ||||||||||||||
For the first quarter 2014 and 2013, 0.1 million stock options 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. |
Fair_Value_Measurements
Fair Value Measurements | 3 Months Ended | |||||||||||||||
Mar. 31, 2014 | ||||||||||||||||
Fair Value Disclosures [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) | ||||||||||||||||
31-Mar-14 | ||||||||||||||||
Cash | $ | 784 | $ | 784 | $ | — | $ | — | ||||||||
Short-term investments | 360 | 360 | — | — | ||||||||||||
Net derivative contracts | 1 | — | 1 | — | ||||||||||||
Long-term debt converted to floating interest rates by | (10 | ) | — | (10 | ) | — | ||||||||||
interest rate swaps - net | ||||||||||||||||
December 31, 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 | ||||||||||||||||
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 $9,307 and fair value of $9,683 at March 31, 2014 compared to $9,536 and $9,665, respectively, at December 31, 2013. 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. |
Derivative_Financial_Instrumen
Derivative Financial Instruments and Hedging Activities | 3 Months Ended | |||||||||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||||||||
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 Condensed 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 $97 and $95, net of tax, at March 31, 2014 and December 31, 2013, respectively. | ||||||||||||||||||||||||
Derivative Financial Statement Impacts | ||||||||||||||||||||||||
The fair value of derivative financial instruments recognized in the Condensed Consolidated Balance Sheets follows: | ||||||||||||||||||||||||
Notional | Other | Other | Other | Other | Type of | Term | ||||||||||||||||||
amount | current | long-term | current | long-term | hedge | |||||||||||||||||||
assets | assets | liabilities | liabilities | |||||||||||||||||||||
31-Mar-14 | ||||||||||||||||||||||||
Derivatives designated as hedges | ||||||||||||||||||||||||
Fixed-to-floating interest rate swaps | $ | 3,290 | $ | — | $ | 39 | $ | — | $ | 49 | Fair value | 3 to 20 years | ||||||||||||
Floating-to-fixed interest rate swaps | 300 | — | — | — | — | Cash flow | 3 months | |||||||||||||||||
Currency exchange contracts | 495 | 12 | — | 3 | — | Cash flow | 12 to 36 months | |||||||||||||||||
Commodity contracts | 1 | — | — | — | — | Cash flow | 1 to 12 months | |||||||||||||||||
Total | $ | 12 | $ | 39 | $ | 3 | $ | 49 | ||||||||||||||||
Derivatives not designated as hedges | ||||||||||||||||||||||||
Currency exchange contracts | $ | 4,160 | $ | 23 | $ | 21 | 1 to 12 months | |||||||||||||||||
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 | 1 to 12 months | |||||||||||||||||
Total | $ | 13 | $ | 36 | $ | 4 | $ | 76 | ||||||||||||||||
Derivatives not designated as hedges | ||||||||||||||||||||||||
Currency exchange contracts | $ | 4,277 | $ | 22 | $ | 26 | 1 to 12 months | |||||||||||||||||
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 income (loss) follow: | ||||||||||||||||||||||||
Three months ended March 31 | ||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
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 | |||||||||||||||||||||
income (loss) | comprehensive | income (loss) | comprehensive | |||||||||||||||||||||
income (loss) | income (loss) | |||||||||||||||||||||||
Derivatives designated as cash flow hedges | ||||||||||||||||||||||||
Currency exchange contracts | $ | 2 | $ | 2 | $ | (9 | ) | $ | 1 | |||||||||||||||
Gains and losses reclassified from Accumulated other comprehensive income to the Consolidated Statements of Income were recognized in Cost of products sold. | ||||||||||||||||||||||||
Amounts recognized in net income follow: | ||||||||||||||||||||||||
Three months ended | ||||||||||||||||||||||||
31-Mar | ||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
Derivatives designated as fair value hedges | ||||||||||||||||||||||||
Fixed-to-floating interest rate swaps | $ | 29 | $ | (8 | ) | |||||||||||||||||||
Related long-term debt converted to floating interest rates by interest rate swaps | (29 | ) | 8 | |||||||||||||||||||||
$ | — | $ | — | |||||||||||||||||||||
Gains and losses described above were recognized in Interest expense - net. |
Inventory
Inventory | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Inventory Disclosure [Abstract] | ' | |||||||
INVENTORY | ' | |||||||
INVENTORY | ||||||||
The components of inventory follow: | ||||||||
March 31, | December 31, | |||||||
2014 | 2013 | |||||||
Raw materials | $ | 1,103 | $ | 955 | ||||
Work-in-process | 323 | 428 | ||||||
Finished goods | 1,226 | 1,115 | ||||||
Inventory at FIFO | 2,652 | 2,498 | ||||||
Excess of FIFO over LIFO cost | (120 | ) | (116 | ) | ||||
Total inventory | $ | 2,532 | $ | 2,382 | ||||
Business_Segment_Information
Business Segment Information | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Segment Reporting [Abstract] | ' | |||||||
BUSINESS SEGMENT INFORMATION | ' | |||||||
BUSINESS SEGMENT 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 operating segments are Electrical Products, Electrical Systems and Services, Hydraulics, Aerospace and Vehicle. For additional information regarding Eaton’s business segments, see Note 14 to the Consolidated Financial Statements contained in the 2013 Form 10-K. | ||||||||
Three months ended | ||||||||
31-Mar | ||||||||
2014 | 2013 | |||||||
Net sales | ||||||||
Electrical Products | $ | 1,726 | $ | 1,660 | ||||
Electrical Systems and Services | 1,524 | 1,521 | ||||||
Hydraulics | 782 | 756 | ||||||
Aerospace | 464 | 434 | ||||||
Vehicle | 996 | 939 | ||||||
Total net sales | $ | 5,492 | $ | 5,310 | ||||
Segment operating profit | ||||||||
Electrical Products | $ | 250 | $ | 241 | ||||
Electrical Systems and Services | 169 | 210 | ||||||
Hydraulics | 108 | 78 | ||||||
Aerospace | 62 | 62 | ||||||
Vehicle | 151 | 132 | ||||||
Total segment operating profit | 740 | 723 | ||||||
Corporate | ||||||||
Amortization of intangible assets | (110 | ) | (107 | ) | ||||
Interest expense - net | (62 | ) | (75 | ) | ||||
Pension and other postretirement benefits expense | (51 | ) | (38 | ) | ||||
Inventory step-up adjustment | — | (33 | ) | |||||
Other corporate expense - net | (64 | ) | (70 | ) | ||||
Income before income taxes | 453 | 400 | ||||||
Income tax expense | 12 | 20 | ||||||
Net income | 441 | 380 | ||||||
Less net income for noncontrolling interests | (2 | ) | (2 | ) | ||||
Net income attributable to Eaton ordinary shareholders | $ | 439 | $ | 378 | ||||
Condensed_Consolidating_Financ
Condensed Consolidating Financial Information (Notes) | 3 Months Ended | |||||||||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||||||||
Condensed Financial Statements, Captions [Line Items] | ' | |||||||||||||||||||||||
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. 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. | ||||||||||||||||||||||||
CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME | ||||||||||||||||||||||||
FOR THE THREE MONTHS ENDED MARCH 31, 2014 | ||||||||||||||||||||||||
Eaton | Eaton | Guarantors | Other | Consolidating | Total | |||||||||||||||||||
Corporation | Corporation | subsidiaries | adjustments | |||||||||||||||||||||
plc | ||||||||||||||||||||||||
Net sales | $ | — | $ | 1,667 | $ | 1,641 | $ | 3,291 | $ | (1,107 | ) | $ | 5,492 | |||||||||||
Cost of products sold | — | 1,342 | 1,218 | 2,392 | (1,094 | ) | 3,858 | |||||||||||||||||
Selling and administrative expense | 2 | 361 | 200 | 399 | — | 962 | ||||||||||||||||||
Research and development expense | — | 60 | 50 | 52 | — | 162 | ||||||||||||||||||
Interest expense (income) - net | — | 59 | 7 | (6 | ) | 2 | 62 | |||||||||||||||||
Other expense (income) - net | — | 5 | 3 | (13 | ) | — | (5 | ) | ||||||||||||||||
Equity in (earnings) loss of | (469 | ) | (207 | ) | (485 | ) | (201 | ) | 1,362 | — | ||||||||||||||
subsidiaries, net of tax | ||||||||||||||||||||||||
Intercompany expense (income) - net | 28 | (71 | ) | 120 | (77 | ) | — | — | ||||||||||||||||
Income before income taxes | 439 | 118 | 528 | 745 | (1,377 | ) | 453 | |||||||||||||||||
Income tax (benefit) expense | — | (25 | ) | (7 | ) | 49 | (5 | ) | 12 | |||||||||||||||
Net income | 439 | 143 | 535 | 696 | (1,372 | ) | 441 | |||||||||||||||||
Less net income for | — | — | — | (2 | ) | — | (2 | ) | ||||||||||||||||
noncontrolling interests | ||||||||||||||||||||||||
Net income attributable to | $ | 439 | $ | 143 | $ | 535 | $ | 694 | $ | (1,372 | ) | $ | 439 | |||||||||||
Eaton ordinary shareholders | ||||||||||||||||||||||||
Other comprehensive income (loss) | $ | 3 | $ | 28 | $ | 23 | $ | (15 | ) | $ | (36 | ) | $ | 3 | ||||||||||
Total comprehensive income | $ | 442 | $ | 171 | $ | 558 | $ | 679 | $ | (1,408 | ) | $ | 442 | |||||||||||
attributable to Eaton | ||||||||||||||||||||||||
ordinary shareholders | ||||||||||||||||||||||||
CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME | ||||||||||||||||||||||||
FOR THE THREE MONTHS ENDED MARCH 31, 2013 | ||||||||||||||||||||||||
Eaton | Eaton | Guarantors | Other | Consolidating | Total | |||||||||||||||||||
Corporation | Corporation | subsidiaries | adjustments | |||||||||||||||||||||
plc | ||||||||||||||||||||||||
Net sales | $ | — | $ | 1,588 | $ | 1,573 | $ | 3,273 | $ | (1,124 | ) | $ | 5,310 | |||||||||||
Cost of products sold | — | 1,239 | 1,195 | 2,425 | (1,124 | ) | 3,735 | |||||||||||||||||
Selling and administrative expense | 2 | 341 | 198 | 417 | — | 958 | ||||||||||||||||||
Research and development expense | — | 58 | 47 | 47 | — | 152 | ||||||||||||||||||
Interest expense (income) - net | — | 74 | 7 | (6 | ) | — | 75 | |||||||||||||||||
Other (income) expense - net | — | (5 | ) | 8 | (13 | ) | — | (10 | ) | |||||||||||||||
Equity in (earnings) loss of | (444 | ) | (309 | ) | (567 | ) | (166 | ) | 1,486 | — | ||||||||||||||
subsidiaries, net of tax | ||||||||||||||||||||||||
Intercompany expense (income) - net | 64 | (102 | ) | 176 | (138 | ) | — | — | ||||||||||||||||
Income before income taxes | 378 | 292 | 509 | 707 | (1,486 | ) | 400 | |||||||||||||||||
Income tax (benefit) expense | — | (2 | ) | (37 | ) | 59 | — | 20 | ||||||||||||||||
Net income | 378 | 294 | 546 | 648 | (1,486 | ) | 380 | |||||||||||||||||
Less net income for | — | — | — | (2 | ) | — | (2 | ) | ||||||||||||||||
noncontrolling interests | ||||||||||||||||||||||||
Net income attributable to | $ | 378 | $ | 294 | $ | 546 | $ | 646 | $ | (1,486 | ) | $ | 378 | |||||||||||
Eaton ordinary shareholders | ||||||||||||||||||||||||
Other comprehensive loss | $ | (235 | ) | $ | (22 | ) | $ | (233 | ) | $ | (391 | ) | $ | 646 | $ | (235 | ) | |||||||
Total comprehensive income | $ | 143 | $ | 272 | $ | 313 | $ | 255 | $ | (840 | ) | $ | 143 | |||||||||||
attributable to Eaton | ||||||||||||||||||||||||
ordinary shareholders | ||||||||||||||||||||||||
CONDENSED CONSOLIDATING BALANCE SHEETS | ||||||||||||||||||||||||
31-Mar-14 | ||||||||||||||||||||||||
Eaton | Eaton | Guarantors | Other | Consolidating | Total | |||||||||||||||||||
Corporation | Corporation | subsidiaries | adjustments | |||||||||||||||||||||
plc | ||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||
Current assets | ||||||||||||||||||||||||
Cash | $ | 8 | $ | 46 | $ | 12 | $ | 718 | $ | — | $ | 784 | ||||||||||||
Short-term investments | — | — | 35 | 325 | — | 360 | ||||||||||||||||||
Accounts receivable - net | — | 506 | 986 | 2,397 | — | 3,889 | ||||||||||||||||||
Intercompany accounts | 10 | 682 | 3,508 | 4,900 | (9,100 | ) | — | |||||||||||||||||
receivable | ||||||||||||||||||||||||
Inventory | — | 368 | 656 | 1,558 | (50 | ) | 2,532 | |||||||||||||||||
Prepaid expenses and | — | 473 | 156 | 476 | 13 | 1,118 | ||||||||||||||||||
other current assets | ||||||||||||||||||||||||
Total current assets | 18 | 2,075 | 5,353 | 10,374 | (9,137 | ) | 8,683 | |||||||||||||||||
Property, plant and | — | 966 | 765 | 2,075 | — | 3,806 | ||||||||||||||||||
equipment - net | ||||||||||||||||||||||||
Other noncurrent assets | ||||||||||||||||||||||||
Goodwill | — | 1,382 | 6,301 | 6,767 | — | 14,450 | ||||||||||||||||||
Other intangible assets | — | 207 | 3,949 | 2,922 | — | 7,078 | ||||||||||||||||||
Deferred income taxes | — | 826 | 12 | 153 | (734 | ) | 257 | |||||||||||||||||
Investment in subsidiaries | 25,427 | 9,057 | 41,344 | 8,701 | (84,529 | ) | — | |||||||||||||||||
Intercompany loans receivable | — | 7,872 | 2,643 | 19,840 | (30,355 | ) | — | |||||||||||||||||
Other assets | — | 417 | 183 | 388 | — | 988 | ||||||||||||||||||
Total assets | $ | 25,445 | $ | 22,802 | $ | 60,550 | $ | 51,220 | $ | (124,755 | ) | $ | 35,262 | |||||||||||
Liabilities and | ||||||||||||||||||||||||
shareholders’ equity | ||||||||||||||||||||||||
Current liabilities | ||||||||||||||||||||||||
Short-term debt | $ | — | $ | — | $ | — | $ | 8 | $ | — | $ | 8 | ||||||||||||
Current portion of | — | 301 | 1 | 14 | — | 316 | ||||||||||||||||||
long-term debt | ||||||||||||||||||||||||
Accounts payable | — | 475 | 391 | 1,210 | — | 2,076 | ||||||||||||||||||
Intercompany accounts payable | 10 | 3,609 | 3,626 | 1,855 | (9,100 | ) | — | |||||||||||||||||
Accrued compensation | — | 48 | 42 | 244 | — | 334 | ||||||||||||||||||
Other current liabilities | 10 | 667 | 381 | 1,017 | (4 | ) | 2,071 | |||||||||||||||||
Total current liabilities | 20 | 5,100 | 4,441 | 4,348 | (9,104 | ) | 4,805 | |||||||||||||||||
Noncurrent liabilities | ||||||||||||||||||||||||
Long-term debt | — | 7,720 | 1,259 | 17 | (5 | ) | 8,991 | |||||||||||||||||
Pension liabilities | — | 375 | 79 | 774 | — | 1,228 | ||||||||||||||||||
Other postretirement | — | 402 | 171 | 93 | — | 666 | ||||||||||||||||||
benefits liabilities | ||||||||||||||||||||||||
Deferred income taxes | — | — | 1,287 | 743 | (734 | ) | 1,296 | |||||||||||||||||
Intercompany loans payable | 8,388 | 2,669 | 18,084 | 1,214 | (30,355 | ) | — | |||||||||||||||||
Other noncurrent liabilities | — | 545 | 155 | 465 | — | 1,165 | ||||||||||||||||||
Total noncurrent liabilities | 8,388 | 11,711 | 21,035 | 3,306 | (31,094 | ) | 13,346 | |||||||||||||||||
Shareholders’ equity | ||||||||||||||||||||||||
Eaton shareholders' equity | 17,037 | 5,991 | 35,074 | 43,499 | (84,564 | ) | 17,037 | |||||||||||||||||
Noncontrolling interests | — | — | — | 67 | 7 | 74 | ||||||||||||||||||
Total equity | 17,037 | 5,991 | 35,074 | 43,566 | (84,557 | ) | 17,111 | |||||||||||||||||
Total liabilities and equity | $ | 25,445 | $ | 22,802 | $ | 60,550 | $ | 51,220 | $ | (124,755 | ) | $ | 35,262 | |||||||||||
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 | 5 | 471 | 3,368 | 4,470 | (8,314 | ) | — | |||||||||||||||||
receivable | ||||||||||||||||||||||||
Inventory | — | 344 | 609 | 1,466 | (37 | ) | 2,382 | |||||||||||||||||
Prepaid expenses and | — | 458 | 175 | 350 | 9 | 992 | ||||||||||||||||||
other current assets | ||||||||||||||||||||||||
Total current assets | 8 | 1,797 | 5,218 | 10,050 | (8,342 | ) | 8,731 | |||||||||||||||||
Property, plant and | — | 982 | 761 | 2,090 | — | 3,833 | ||||||||||||||||||
equipment - net | ||||||||||||||||||||||||
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 | — | 552 | — | 15 | — | 567 | ||||||||||||||||||
long-term debt | ||||||||||||||||||||||||
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 | — | 402 | 171 | 95 | — | 668 | ||||||||||||||||||
benefits 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 STATEMENTS OF CASH FLOWS | ||||||||||||||||||||||||
FOR THE THREE MONTHS ENDED MARCH 31, 2014 | ||||||||||||||||||||||||
Eaton | Eaton | Guarantors | Other | Consolidating | Total | |||||||||||||||||||
Corporation | Corporation | subsidiaries | adjustments | |||||||||||||||||||||
plc | ||||||||||||||||||||||||
Net cash provided by (used in) | $ | 17 | $ | (463 | ) | $ | 182 | $ | 276 | $ | — | $ | 12 | |||||||||||
operating activities | ||||||||||||||||||||||||
Investing activities | ||||||||||||||||||||||||
Capital expenditures for property, | — | (25 | ) | (29 | ) | (56 | ) | — | (110 | ) | ||||||||||||||
plant and equipment | ||||||||||||||||||||||||
Sales of short-term investments - net | — | — | 98 | 333 | — | 431 | ||||||||||||||||||
Loans to affiliates | — | (7 | ) | — | (1,056 | ) | 1,063 | — | ||||||||||||||||
Repayments of loans from affiliates | — | 171 | — | 814 | (985 | ) | — | |||||||||||||||||
Proceeds from sale of business | — | — | — | 3 | — | 3 | ||||||||||||||||||
Other - net | — | (13 | ) | (1 | ) | (6 | ) | — | (20 | ) | ||||||||||||||
Net cash provided by | — | 126 | 68 | 32 | 78 | 304 | ||||||||||||||||||
investing activities | ||||||||||||||||||||||||
Financing activities | ||||||||||||||||||||||||
Payments on borrowings | — | (251 | ) | — | (6 | ) | — | (257 | ) | |||||||||||||||
Proceeds from borrowings from | — | 946 | 110 | 7 | (1,063 | ) | — | |||||||||||||||||
affiliates | ||||||||||||||||||||||||
Payments on borrowings from | — | (510 | ) | (304 | ) | (171 | ) | 985 | — | |||||||||||||||
affiliates | ||||||||||||||||||||||||
Other intercompany | 217 | 104 | (54 | ) | (267 | ) | — | — | ||||||||||||||||
financing activities | ||||||||||||||||||||||||
Cash dividends paid | (229 | ) | — | — | — | — | (229 | ) | ||||||||||||||||
Exercise of employee stock options | — | 23 | — | — | — | 23 | ||||||||||||||||||
Excess tax benefit from | — | 20 | — | — | — | 20 | ||||||||||||||||||
equity-based compensation | ||||||||||||||||||||||||
Net cash (used in) provided by | (12 | ) | 332 | (248 | ) | (437 | ) | (78 | ) | (443 | ) | |||||||||||||
financing activities | ||||||||||||||||||||||||
Effect of currency on cash | — | — | — | (4 | ) | — | (4 | ) | ||||||||||||||||
Total increase (decrease) in cash | 5 | (5 | ) | 2 | (133 | ) | — | (131 | ) | |||||||||||||||
Cash at the beginning of the period | 3 | 51 | 10 | 851 | — | 915 | ||||||||||||||||||
Cash at the end of the period | $ | 8 | $ | 46 | $ | 12 | $ | 718 | $ | — | $ | 784 | ||||||||||||
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS | ||||||||||||||||||||||||
FOR THE THREE MONTHS ENDED MARCH 31, 2013 | ||||||||||||||||||||||||
Eaton | Eaton | Guarantors | Other | Consolidating | Total | |||||||||||||||||||
Corporation | Corporation | subsidiaries | adjustments | |||||||||||||||||||||
plc | ||||||||||||||||||||||||
Net cash provided by (used in) | $ | 62 | $ | (301 | ) | $ | 778 | $ | (439 | ) | $ | — | $ | 100 | ||||||||||
operating activities | ||||||||||||||||||||||||
Investing activities | ||||||||||||||||||||||||
Capital expenditures for property, | — | (51 | ) | (18 | ) | (53 | ) | — | (122 | ) | ||||||||||||||
plant and equipment | ||||||||||||||||||||||||
Sales of short-term investments - net | — | 25 | 31 | 76 | — | 132 | ||||||||||||||||||
Loans to affiliates | — | (36 | ) | — | (438 | ) | 474 | — | ||||||||||||||||
Repayments of loans from affiliates | — | 28 | 82 | 303 | (413 | ) | — | |||||||||||||||||
Proceeds from sale of business | — | — | — | 761 | — | 761 | ||||||||||||||||||
Other - net | — | 4 | (3 | ) | 1 | — | 2 | |||||||||||||||||
Net cash (used in) provided by | — | (30 | ) | 92 | 650 | 61 | 773 | |||||||||||||||||
investing activities | ||||||||||||||||||||||||
Financing activities | ||||||||||||||||||||||||
Payments on borrowings | — | (676 | ) | (8 | ) | (3 | ) | — | (687 | ) | ||||||||||||||
Proceeds from borrowings from | — | 437 | 1 | 36 | (474 | ) | — | |||||||||||||||||
affiliates | ||||||||||||||||||||||||
Payments on borrowings from | — | (131 | ) | (171 | ) | (111 | ) | 413 | — | |||||||||||||||
affiliates | ||||||||||||||||||||||||
Other intercompany | 129 | 687 | (692 | ) | (124 | ) | — | — | ||||||||||||||||
financing activities | ||||||||||||||||||||||||
Cash dividends paid | (194 | ) | — | — | — | — | (194 | ) | ||||||||||||||||
Exercise of employee stock options | — | 56 | — | — | — | 56 | ||||||||||||||||||
Excess tax benefit from | — | 16 | — | — | — | 16 | ||||||||||||||||||
equity-based compensation | ||||||||||||||||||||||||
Other - net | — | — | — | (1 | ) | — | (1 | ) | ||||||||||||||||
Net cash (used in) provided by | (65 | ) | 389 | (870 | ) | (203 | ) | (61 | ) | (810 | ) | |||||||||||||
financing activities | ||||||||||||||||||||||||
Effect of currency on cash | — | — | — | (1 | ) | — | (1 | ) | ||||||||||||||||
Total (decrease) increase in cash | (3 | ) | 58 | — | 7 | — | 62 | |||||||||||||||||
Cash at the beginning of the period | 7 | 54 | 14 | 502 | — | 577 | ||||||||||||||||||
Cash at the end of the period | $ | 4 | $ | 112 | $ | 14 | $ | 509 | $ | — | $ | 639 | ||||||||||||
Acquisitions_of_Businesses_Tab
Acquisitions of Businesses (Tables) | 3 Months Ended | ||||||
Mar. 31, 2014 | |||||||
Business Acquisition [Line Items] | ' | ||||||
Schedule of Business Acquisitions, by Acquisition [Table Text Block] | ' | ||||||
Eaton's most recently acquired businesses, and the related annual sales prior to acquisition, are summarized below: | |||||||
Acquired businesses | Date of | Business | Annual | ||||
transaction | segment | sales | |||||
Cooper Industries plc (Cooper) | November 30, | Electrical Products; | $5,409 | ||||
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. | 2012 | Electrical Systems and Services | for 2011 | ||||
Rolec Comercial e Industrial S.A. | September 28, | Electrical Systems and Services | $85 for the | ||||
2012 | 12 months | ||||||
ended | |||||||
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 | ||||
A Korean manufacturer of track drive motors, swing drive motors, main control valves and remote control valves for the construction equipment market. | 2012 | for 2011 | |||||
Polimer Kaucuk Sanayi ve Pazarlama A.S. | June 1, | Hydraulics | $335 | ||||
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 | for 2011 | |||||
Gycom Electrical Low-Voltage Power Distribution, Control and Automation | June 1, | Electrical Systems and Services | $24 | ||||
A Swedish electrical low-voltage power distribution, control and automation components business. | 2012 | for 2011 |
Acquisition_Integration_Charge
Acquisition Integration Charges and Transaction Costs (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Acquisition Integration and Restructuring Charges [Abstract] | ' | |||||||
Acquisition integration charges and transaction costs | ' | |||||||
A summary of these charges follows: | ||||||||
Three months ended | ||||||||
31-Mar | ||||||||
2014 | 2013 | |||||||
Acquisition integration charges | ||||||||
Electrical Products | $ | 29 | $ | 3 | ||||
Electrical Systems and Services | 26 | 5 | ||||||
Hydraulics | 4 | 12 | ||||||
Total business segments | 59 | 20 | ||||||
Corporate | 7 | 6 | ||||||
Total acquisition integration charges | 66 | 26 | ||||||
Transaction costs | ||||||||
Corporate | — | 5 | ||||||
Total transaction costs | — | 5 | ||||||
Total acquisition integration charges and transaction costs before income taxes | $ | 66 | $ | 31 | ||||
Total after income taxes | $ | 44 | $ | 22 | ||||
Per ordinary share - diluted | $ | 0.09 | $ | 0.05 | ||||
Goodwill_Tables
Goodwill (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||
Schedule of Goodwill | ' | |||||||
A summary of goodwill follows: | ||||||||
March 31, | December 31, | |||||||
2014 | 2013 | |||||||
Electrical Products | $ | 7,153 | $ | 7,189 | ||||
Electrical Systems and Services | 4,508 | 4,517 | ||||||
Hydraulics | 1,384 | 1,385 | ||||||
Aerospace | 1,048 | 1,048 | ||||||
Vehicle | 357 | 356 | ||||||
Total goodwill | $ | 14,450 | $ | 14,495 | ||||
Retirement_Benefits_Plans_Tabl
Retirement Benefits Plans (Tables) | 3 Months Ended | |||||||||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | |||||||||||||||||||||||
Retirement benefits plans expense | ' | |||||||||||||||||||||||
The components of retirement benefits expense follow: | ||||||||||||||||||||||||
United States | Non-United States | Other postretirement | ||||||||||||||||||||||
pension benefit expense | pension benefit expense | benefits expense | ||||||||||||||||||||||
Three months ended March 31 | ||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||
Service cost | $ | 29 | $ | 32 | $ | 16 | $ | 15 | $ | 4 | $ | 5 | ||||||||||||
Interest cost | 40 | 37 | 22 | 20 | 9 | 9 | ||||||||||||||||||
Expected return on plan assets | (61 | ) | (57 | ) | (25 | ) | (21 | ) | (1 | ) | (2 | ) | ||||||||||||
Amortization | 23 | 33 | 7 | 7 | 2 | 3 | ||||||||||||||||||
31 | 45 | 20 | 21 | 14 | 15 | |||||||||||||||||||
Settlement loss | 34 | 6 | — | — | — | — | ||||||||||||||||||
Total expense | $ | 65 | $ | 51 | $ | 20 | $ | 21 | $ | 14 | $ | 15 | ||||||||||||
Equity_Tables
Equity (Tables) | 3 Months Ended | |||||||||||||||
Mar. 31, 2014 | ||||||||||||||||
Stockholders' Equity Note [Abstract] | ' | |||||||||||||||
Changes in Shareholders' equity | ' | |||||||||||||||
The changes in Shareholders’ equity follow: | ||||||||||||||||
Eaton | Noncontrolling | Total | ||||||||||||||
shareholders’ | interests | equity | ||||||||||||||
equity | ||||||||||||||||
Balance at December 31, 2013 | $ | 16,791 | $ | 72 | $ | 16,863 | ||||||||||
Net income | 439 | 2 | 441 | |||||||||||||
Other comprehensive income | 3 | — | 3 | |||||||||||||
Cash dividends paid and accrued | (234 | ) | — | (234 | ) | |||||||||||
Issuance of shares under equity-based compensation plans - net | 38 | — | 38 | |||||||||||||
Balance at March 31, 2014 | $ | 17,037 | $ | 74 | $ | 17,111 | ||||||||||
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, 2013 | $ | (395 | ) | $ | (1,170 | ) | $ | 5 | $ | (1,560 | ) | |||||
Other comprehensive (loss) income | (47 | ) | 9 | 1 | (37 | ) | ||||||||||
before reclassifications | ||||||||||||||||
Amounts reclassified from Accumulated other | — | 41 | (1 | ) | 40 | |||||||||||
comprehensive (loss) income | ||||||||||||||||
Net current-period other comprehensive | (47 | ) | 50 | — | 3 | |||||||||||
(loss) income | ||||||||||||||||
Balance at March 31, 2014 | $ | (442 | ) | $ | (1,120 | ) | $ | 5 | $ | (1,557 | ) | |||||
Reclassification out of accumulated other comprehensive income [Table Text Block] | ' | |||||||||||||||
The reclassifications out of Accumulated other comprehensive loss follow: | ||||||||||||||||
Three months ended | Consolidated Statements of | |||||||||||||||
31-Mar-14 | Income classification | |||||||||||||||
Amortization of defined benefit pension items | ||||||||||||||||
Actuarial loss | $ | (66 | ) | 1 | ||||||||||||
Tax benefit | 25 | |||||||||||||||
Total, net of tax | (41 | ) | ||||||||||||||
Loss on cash flow hedges | ||||||||||||||||
Currency exchange contracts | 2 | Cost of products sold | ||||||||||||||
Tax expense | (1 | ) | ||||||||||||||
Total, net of tax | 1 | |||||||||||||||
Total reclassifications for the period | $ | (40 | ) | |||||||||||||
Calculation of net income per ordinary share attributable to ordinary shareholders | ' | |||||||||||||||
A summary of the calculation of net income per ordinary share attributable to shareholders follows: | ||||||||||||||||
Three months ended | ||||||||||||||||
31-Mar | ||||||||||||||||
(Shares in millions) | 2014 | 2013 | ||||||||||||||
Net income attributable to Eaton ordinary shareholders | $ | 439 | $ | 378 | ||||||||||||
Weighted-average number of ordinary shares outstanding - diluted | 478.8 | 475.1 | ||||||||||||||
Less dilutive effect of equity-based compensation | 3 | 3.2 | ||||||||||||||
Weighted-average number of ordinary shares outstanding - basic | 475.8 | 471.9 | ||||||||||||||
Net income per ordinary share | ||||||||||||||||
Diluted | $ | 0.92 | $ | 0.79 | ||||||||||||
Basic | 0.92 | 0.8 | ||||||||||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 3 Months Ended | |||||||||||||||
Mar. 31, 2014 | ||||||||||||||||
Fair Value Disclosures [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) | ||||||||||||||||
31-Mar-14 | ||||||||||||||||
Cash | $ | 784 | $ | 784 | $ | — | $ | — | ||||||||
Short-term investments | 360 | 360 | — | — | ||||||||||||
Net derivative contracts | 1 | — | 1 | — | ||||||||||||
Long-term debt converted to floating interest rates by | (10 | ) | — | (10 | ) | — | ||||||||||
interest rate swaps - net | ||||||||||||||||
December 31, 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 |
Derivative_Financial_Instrumen1
Derivative Financial Instruments and Hedging Activities (Tables) | 3 Months Ended | |||||||||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | |||||||||||||||||||||||
Derivative financial instruments recognized in the Consolidated Balance Sheet | ' | |||||||||||||||||||||||
The fair value of derivative financial instruments recognized in the Condensed Consolidated Balance Sheets follows: | ||||||||||||||||||||||||
Notional | Other | Other | Other | Other | Type of | Term | ||||||||||||||||||
amount | current | long-term | current | long-term | hedge | |||||||||||||||||||
assets | assets | liabilities | liabilities | |||||||||||||||||||||
31-Mar-14 | ||||||||||||||||||||||||
Derivatives designated as hedges | ||||||||||||||||||||||||
Fixed-to-floating interest rate swaps | $ | 3,290 | $ | — | $ | 39 | $ | — | $ | 49 | Fair value | 3 to 20 years | ||||||||||||
Floating-to-fixed interest rate swaps | 300 | — | — | — | — | Cash flow | 3 months | |||||||||||||||||
Currency exchange contracts | 495 | 12 | — | 3 | — | Cash flow | 12 to 36 months | |||||||||||||||||
Commodity contracts | 1 | — | — | — | — | Cash flow | 1 to 12 months | |||||||||||||||||
Total | $ | 12 | $ | 39 | $ | 3 | $ | 49 | ||||||||||||||||
Derivatives not designated as hedges | ||||||||||||||||||||||||
Currency exchange contracts | $ | 4,160 | $ | 23 | $ | 21 | 1 to 12 months | |||||||||||||||||
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 | 1 to 12 months | |||||||||||||||||
Total | $ | 13 | $ | 36 | $ | 4 | $ | 76 | ||||||||||||||||
Derivatives not designated as hedges | ||||||||||||||||||||||||
Currency exchange contracts | $ | 4,277 | $ | 22 | $ | 26 | 1 to 12 months | |||||||||||||||||
Amounts recognized in accumulated other comprehensive income (loss) | ' | |||||||||||||||||||||||
Amounts recognized in Accumulated other comprehensive income (loss) follow: | ||||||||||||||||||||||||
Three months ended March 31 | ||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
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 | |||||||||||||||||||||
income (loss) | comprehensive | income (loss) | comprehensive | |||||||||||||||||||||
income (loss) | income (loss) | |||||||||||||||||||||||
Derivatives designated as cash flow hedges | ||||||||||||||||||||||||
Currency exchange contracts | $ | 2 | $ | 2 | $ | (9 | ) | $ | 1 | |||||||||||||||
Amounts recognized in net income | ' | |||||||||||||||||||||||
Amounts recognized in net income follow: | ||||||||||||||||||||||||
Three months ended | ||||||||||||||||||||||||
31-Mar | ||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
Derivatives designated as fair value hedges | ||||||||||||||||||||||||
Fixed-to-floating interest rate swaps | $ | 29 | $ | (8 | ) | |||||||||||||||||||
Related long-term debt converted to floating interest rates by interest rate swaps | (29 | ) | 8 | |||||||||||||||||||||
$ | — | $ | — | |||||||||||||||||||||
Inventory_Tables
Inventory (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Inventory Disclosure [Abstract] | ' | |||||||
Components of inventory | ' | |||||||
The components of inventory follow: | ||||||||
March 31, | December 31, | |||||||
2014 | 2013 | |||||||
Raw materials | $ | 1,103 | $ | 955 | ||||
Work-in-process | 323 | 428 | ||||||
Finished goods | 1,226 | 1,115 | ||||||
Inventory at FIFO | 2,652 | 2,498 | ||||||
Excess of FIFO over LIFO cost | (120 | ) | (116 | ) | ||||
Total inventory | $ | 2,532 | $ | 2,382 | ||||
Business_Segment_Information_T
Business Segment Information (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Segment Reporting [Abstract] | ' | |||||||
Business Segment Information | ' | |||||||
Three months ended | ||||||||
31-Mar | ||||||||
2014 | 2013 | |||||||
Net sales | ||||||||
Electrical Products | $ | 1,726 | $ | 1,660 | ||||
Electrical Systems and Services | 1,524 | 1,521 | ||||||
Hydraulics | 782 | 756 | ||||||
Aerospace | 464 | 434 | ||||||
Vehicle | 996 | 939 | ||||||
Total net sales | $ | 5,492 | $ | 5,310 | ||||
Segment operating profit | ||||||||
Electrical Products | $ | 250 | $ | 241 | ||||
Electrical Systems and Services | 169 | 210 | ||||||
Hydraulics | 108 | 78 | ||||||
Aerospace | 62 | 62 | ||||||
Vehicle | 151 | 132 | ||||||
Total segment operating profit | 740 | 723 | ||||||
Corporate | ||||||||
Amortization of intangible assets | (110 | ) | (107 | ) | ||||
Interest expense - net | (62 | ) | (75 | ) | ||||
Pension and other postretirement benefits expense | (51 | ) | (38 | ) | ||||
Inventory step-up adjustment | — | (33 | ) | |||||
Other corporate expense - net | (64 | ) | (70 | ) | ||||
Income before income taxes | 453 | 400 | ||||||
Income tax expense | 12 | 20 | ||||||
Net income | 441 | 380 | ||||||
Less net income for noncontrolling interests | (2 | ) | (2 | ) | ||||
Net income attributable to Eaton ordinary shareholders | $ | 439 | $ | 378 | ||||
Condensed_Consolidating_Financ1
Condensed Consolidating Financial Information (Tables) | 3 Months Ended | |||||||||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||||||||
Condensed Financial Statements, Captions [Line Items] | ' | |||||||||||||||||||||||
Condensed Consolidating Financial Statements [Table Text Block] | ' | |||||||||||||||||||||||
CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME | ||||||||||||||||||||||||
FOR THE THREE MONTHS ENDED MARCH 31, 2014 | ||||||||||||||||||||||||
Eaton | Eaton | Guarantors | Other | Consolidating | Total | |||||||||||||||||||
Corporation | Corporation | subsidiaries | adjustments | |||||||||||||||||||||
plc | ||||||||||||||||||||||||
Net sales | $ | — | $ | 1,667 | $ | 1,641 | $ | 3,291 | $ | (1,107 | ) | $ | 5,492 | |||||||||||
Cost of products sold | — | 1,342 | 1,218 | 2,392 | (1,094 | ) | 3,858 | |||||||||||||||||
Selling and administrative expense | 2 | 361 | 200 | 399 | — | 962 | ||||||||||||||||||
Research and development expense | — | 60 | 50 | 52 | — | 162 | ||||||||||||||||||
Interest expense (income) - net | — | 59 | 7 | (6 | ) | 2 | 62 | |||||||||||||||||
Other expense (income) - net | — | 5 | 3 | (13 | ) | — | (5 | ) | ||||||||||||||||
Equity in (earnings) loss of | (469 | ) | (207 | ) | (485 | ) | (201 | ) | 1,362 | — | ||||||||||||||
subsidiaries, net of tax | ||||||||||||||||||||||||
Intercompany expense (income) - net | 28 | (71 | ) | 120 | (77 | ) | — | — | ||||||||||||||||
Income before income taxes | 439 | 118 | 528 | 745 | (1,377 | ) | 453 | |||||||||||||||||
Income tax (benefit) expense | — | (25 | ) | (7 | ) | 49 | (5 | ) | 12 | |||||||||||||||
Net income | 439 | 143 | 535 | 696 | (1,372 | ) | 441 | |||||||||||||||||
Less net income for | — | — | — | (2 | ) | — | (2 | ) | ||||||||||||||||
noncontrolling interests | ||||||||||||||||||||||||
Net income attributable to | $ | 439 | $ | 143 | $ | 535 | $ | 694 | $ | (1,372 | ) | $ | 439 | |||||||||||
Eaton ordinary shareholders | ||||||||||||||||||||||||
Other comprehensive income (loss) | $ | 3 | $ | 28 | $ | 23 | $ | (15 | ) | $ | (36 | ) | $ | 3 | ||||||||||
Total comprehensive income | $ | 442 | $ | 171 | $ | 558 | $ | 679 | $ | (1,408 | ) | $ | 442 | |||||||||||
attributable to Eaton | ||||||||||||||||||||||||
ordinary shareholders | ||||||||||||||||||||||||
CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME | ||||||||||||||||||||||||
FOR THE THREE MONTHS ENDED MARCH 31, 2013 | ||||||||||||||||||||||||
Eaton | Eaton | Guarantors | Other | Consolidating | Total | |||||||||||||||||||
Corporation | Corporation | subsidiaries | adjustments | |||||||||||||||||||||
plc | ||||||||||||||||||||||||
Net sales | $ | — | $ | 1,588 | $ | 1,573 | $ | 3,273 | $ | (1,124 | ) | $ | 5,310 | |||||||||||
Cost of products sold | — | 1,239 | 1,195 | 2,425 | (1,124 | ) | 3,735 | |||||||||||||||||
Selling and administrative expense | 2 | 341 | 198 | 417 | — | 958 | ||||||||||||||||||
Research and development expense | — | 58 | 47 | 47 | — | 152 | ||||||||||||||||||
Interest expense (income) - net | — | 74 | 7 | (6 | ) | — | 75 | |||||||||||||||||
Other (income) expense - net | — | (5 | ) | 8 | (13 | ) | — | (10 | ) | |||||||||||||||
Equity in (earnings) loss of | (444 | ) | (309 | ) | (567 | ) | (166 | ) | 1,486 | — | ||||||||||||||
subsidiaries, net of tax | ||||||||||||||||||||||||
Intercompany expense (income) - net | 64 | (102 | ) | 176 | (138 | ) | — | — | ||||||||||||||||
Income before income taxes | 378 | 292 | 509 | 707 | (1,486 | ) | 400 | |||||||||||||||||
Income tax (benefit) expense | — | (2 | ) | (37 | ) | 59 | — | 20 | ||||||||||||||||
Net income | 378 | 294 | 546 | 648 | (1,486 | ) | 380 | |||||||||||||||||
Less net income for | — | — | — | (2 | ) | — | (2 | ) | ||||||||||||||||
noncontrolling interests | ||||||||||||||||||||||||
Net income attributable to | $ | 378 | $ | 294 | $ | 546 | $ | 646 | $ | (1,486 | ) | $ | 378 | |||||||||||
Eaton ordinary shareholders | ||||||||||||||||||||||||
Other comprehensive loss | $ | (235 | ) | $ | (22 | ) | $ | (233 | ) | $ | (391 | ) | $ | 646 | $ | (235 | ) | |||||||
Total comprehensive income | $ | 143 | $ | 272 | $ | 313 | $ | 255 | $ | (840 | ) | $ | 143 | |||||||||||
attributable to Eaton | ||||||||||||||||||||||||
ordinary shareholders | ||||||||||||||||||||||||
CONDENSED CONSOLIDATING BALANCE SHEETS | ||||||||||||||||||||||||
31-Mar-14 | ||||||||||||||||||||||||
Eaton | Eaton | Guarantors | Other | Consolidating | Total | |||||||||||||||||||
Corporation | Corporation | subsidiaries | adjustments | |||||||||||||||||||||
plc | ||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||
Current assets | ||||||||||||||||||||||||
Cash | $ | 8 | $ | 46 | $ | 12 | $ | 718 | $ | — | $ | 784 | ||||||||||||
Short-term investments | — | — | 35 | 325 | — | 360 | ||||||||||||||||||
Accounts receivable - net | — | 506 | 986 | 2,397 | — | 3,889 | ||||||||||||||||||
Intercompany accounts | 10 | 682 | 3,508 | 4,900 | (9,100 | ) | — | |||||||||||||||||
receivable | ||||||||||||||||||||||||
Inventory | — | 368 | 656 | 1,558 | (50 | ) | 2,532 | |||||||||||||||||
Prepaid expenses and | — | 473 | 156 | 476 | 13 | 1,118 | ||||||||||||||||||
other current assets | ||||||||||||||||||||||||
Total current assets | 18 | 2,075 | 5,353 | 10,374 | (9,137 | ) | 8,683 | |||||||||||||||||
Property, plant and | — | 966 | 765 | 2,075 | — | 3,806 | ||||||||||||||||||
equipment - net | ||||||||||||||||||||||||
Other noncurrent assets | ||||||||||||||||||||||||
Goodwill | — | 1,382 | 6,301 | 6,767 | — | 14,450 | ||||||||||||||||||
Other intangible assets | — | 207 | 3,949 | 2,922 | — | 7,078 | ||||||||||||||||||
Deferred income taxes | — | 826 | 12 | 153 | (734 | ) | 257 | |||||||||||||||||
Investment in subsidiaries | 25,427 | 9,057 | 41,344 | 8,701 | (84,529 | ) | — | |||||||||||||||||
Intercompany loans receivable | — | 7,872 | 2,643 | 19,840 | (30,355 | ) | — | |||||||||||||||||
Other assets | — | 417 | 183 | 388 | — | 988 | ||||||||||||||||||
Total assets | $ | 25,445 | $ | 22,802 | $ | 60,550 | $ | 51,220 | $ | (124,755 | ) | $ | 35,262 | |||||||||||
Liabilities and | ||||||||||||||||||||||||
shareholders’ equity | ||||||||||||||||||||||||
Current liabilities | ||||||||||||||||||||||||
Short-term debt | $ | — | $ | — | $ | — | $ | 8 | $ | — | $ | 8 | ||||||||||||
Current portion of | — | 301 | 1 | 14 | — | 316 | ||||||||||||||||||
long-term debt | ||||||||||||||||||||||||
Accounts payable | — | 475 | 391 | 1,210 | — | 2,076 | ||||||||||||||||||
Intercompany accounts payable | 10 | 3,609 | 3,626 | 1,855 | (9,100 | ) | — | |||||||||||||||||
Accrued compensation | — | 48 | 42 | 244 | — | 334 | ||||||||||||||||||
Other current liabilities | 10 | 667 | 381 | 1,017 | (4 | ) | 2,071 | |||||||||||||||||
Total current liabilities | 20 | 5,100 | 4,441 | 4,348 | (9,104 | ) | 4,805 | |||||||||||||||||
Noncurrent liabilities | ||||||||||||||||||||||||
Long-term debt | — | 7,720 | 1,259 | 17 | (5 | ) | 8,991 | |||||||||||||||||
Pension liabilities | — | 375 | 79 | 774 | — | 1,228 | ||||||||||||||||||
Other postretirement | — | 402 | 171 | 93 | — | 666 | ||||||||||||||||||
benefits liabilities | ||||||||||||||||||||||||
Deferred income taxes | — | — | 1,287 | 743 | (734 | ) | 1,296 | |||||||||||||||||
Intercompany loans payable | 8,388 | 2,669 | 18,084 | 1,214 | (30,355 | ) | — | |||||||||||||||||
Other noncurrent liabilities | — | 545 | 155 | 465 | — | 1,165 | ||||||||||||||||||
Total noncurrent liabilities | 8,388 | 11,711 | 21,035 | 3,306 | (31,094 | ) | 13,346 | |||||||||||||||||
Shareholders’ equity | ||||||||||||||||||||||||
Eaton shareholders' equity | 17,037 | 5,991 | 35,074 | 43,499 | (84,564 | ) | 17,037 | |||||||||||||||||
Noncontrolling interests | — | — | — | 67 | 7 | 74 | ||||||||||||||||||
Total equity | 17,037 | 5,991 | 35,074 | 43,566 | (84,557 | ) | 17,111 | |||||||||||||||||
Total liabilities and equity | $ | 25,445 | $ | 22,802 | $ | 60,550 | $ | 51,220 | $ | (124,755 | ) | $ | 35,262 | |||||||||||
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 | 5 | 471 | 3,368 | 4,470 | (8,314 | ) | — | |||||||||||||||||
receivable | ||||||||||||||||||||||||
Inventory | — | 344 | 609 | 1,466 | (37 | ) | 2,382 | |||||||||||||||||
Prepaid expenses and | — | 458 | 175 | 350 | 9 | 992 | ||||||||||||||||||
other current assets | ||||||||||||||||||||||||
Total current assets | 8 | 1,797 | 5,218 | 10,050 | (8,342 | ) | 8,731 | |||||||||||||||||
Property, plant and | — | 982 | 761 | 2,090 | — | 3,833 | ||||||||||||||||||
equipment - net | ||||||||||||||||||||||||
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 | — | 552 | — | 15 | — | 567 | ||||||||||||||||||
long-term debt | ||||||||||||||||||||||||
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 | — | 402 | 171 | 95 | — | 668 | ||||||||||||||||||
benefits 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 STATEMENTS OF CASH FLOWS | ||||||||||||||||||||||||
FOR THE THREE MONTHS ENDED MARCH 31, 2014 | ||||||||||||||||||||||||
Eaton | Eaton | Guarantors | Other | Consolidating | Total | |||||||||||||||||||
Corporation | Corporation | subsidiaries | adjustments | |||||||||||||||||||||
plc | ||||||||||||||||||||||||
Net cash provided by (used in) | $ | 17 | $ | (463 | ) | $ | 182 | $ | 276 | $ | — | $ | 12 | |||||||||||
operating activities | ||||||||||||||||||||||||
Investing activities | ||||||||||||||||||||||||
Capital expenditures for property, | — | (25 | ) | (29 | ) | (56 | ) | — | (110 | ) | ||||||||||||||
plant and equipment | ||||||||||||||||||||||||
Sales of short-term investments - net | — | — | 98 | 333 | — | 431 | ||||||||||||||||||
Loans to affiliates | — | (7 | ) | — | (1,056 | ) | 1,063 | — | ||||||||||||||||
Repayments of loans from affiliates | — | 171 | — | 814 | (985 | ) | — | |||||||||||||||||
Proceeds from sale of business | — | — | — | 3 | — | 3 | ||||||||||||||||||
Other - net | — | (13 | ) | (1 | ) | (6 | ) | — | (20 | ) | ||||||||||||||
Net cash provided by | — | 126 | 68 | 32 | 78 | 304 | ||||||||||||||||||
investing activities | ||||||||||||||||||||||||
Financing activities | ||||||||||||||||||||||||
Payments on borrowings | — | (251 | ) | — | (6 | ) | — | (257 | ) | |||||||||||||||
Proceeds from borrowings from | — | 946 | 110 | 7 | (1,063 | ) | — | |||||||||||||||||
affiliates | ||||||||||||||||||||||||
Payments on borrowings from | — | (510 | ) | (304 | ) | (171 | ) | 985 | — | |||||||||||||||
affiliates | ||||||||||||||||||||||||
Other intercompany | 217 | 104 | (54 | ) | (267 | ) | — | — | ||||||||||||||||
financing activities | ||||||||||||||||||||||||
Cash dividends paid | (229 | ) | — | — | — | — | (229 | ) | ||||||||||||||||
Exercise of employee stock options | — | 23 | — | — | — | 23 | ||||||||||||||||||
Excess tax benefit from | — | 20 | — | — | — | 20 | ||||||||||||||||||
equity-based compensation | ||||||||||||||||||||||||
Net cash (used in) provided by | (12 | ) | 332 | (248 | ) | (437 | ) | (78 | ) | (443 | ) | |||||||||||||
financing activities | ||||||||||||||||||||||||
Effect of currency on cash | — | — | — | (4 | ) | — | (4 | ) | ||||||||||||||||
Total increase (decrease) in cash | 5 | (5 | ) | 2 | (133 | ) | — | (131 | ) | |||||||||||||||
Cash at the beginning of the period | 3 | 51 | 10 | 851 | — | 915 | ||||||||||||||||||
Cash at the end of the period | $ | 8 | $ | 46 | $ | 12 | $ | 718 | $ | — | $ | 784 | ||||||||||||
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS | ||||||||||||||||||||||||
FOR THE THREE MONTHS ENDED MARCH 31, 2013 | ||||||||||||||||||||||||
Eaton | Eaton | Guarantors | Other | Consolidating | Total | |||||||||||||||||||
Corporation | Corporation | subsidiaries | adjustments | |||||||||||||||||||||
plc | ||||||||||||||||||||||||
Net cash provided by (used in) | $ | 62 | $ | (301 | ) | $ | 778 | $ | (439 | ) | $ | — | $ | 100 | ||||||||||
operating activities | ||||||||||||||||||||||||
Investing activities | ||||||||||||||||||||||||
Capital expenditures for property, | — | (51 | ) | (18 | ) | (53 | ) | — | (122 | ) | ||||||||||||||
plant and equipment | ||||||||||||||||||||||||
Sales of short-term investments - net | — | 25 | 31 | 76 | — | 132 | ||||||||||||||||||
Loans to affiliates | — | (36 | ) | — | (438 | ) | 474 | — | ||||||||||||||||
Repayments of loans from affiliates | — | 28 | 82 | 303 | (413 | ) | — | |||||||||||||||||
Proceeds from sale of business | — | — | — | 761 | — | 761 | ||||||||||||||||||
Other - net | — | 4 | (3 | ) | 1 | — | 2 | |||||||||||||||||
Net cash (used in) provided by | — | (30 | ) | 92 | 650 | 61 | 773 | |||||||||||||||||
investing activities | ||||||||||||||||||||||||
Financing activities | ||||||||||||||||||||||||
Payments on borrowings | — | (676 | ) | (8 | ) | (3 | ) | — | (687 | ) | ||||||||||||||
Proceeds from borrowings from | — | 437 | 1 | 36 | (474 | ) | — | |||||||||||||||||
affiliates | ||||||||||||||||||||||||
Payments on borrowings from | — | (131 | ) | (171 | ) | (111 | ) | 413 | — | |||||||||||||||
affiliates | ||||||||||||||||||||||||
Other intercompany | 129 | 687 | (692 | ) | (124 | ) | — | — | ||||||||||||||||
financing activities | ||||||||||||||||||||||||
Cash dividends paid | (194 | ) | — | — | — | — | (194 | ) | ||||||||||||||||
Exercise of employee stock options | — | 56 | — | — | — | 56 | ||||||||||||||||||
Excess tax benefit from | — | 16 | — | — | — | 16 | ||||||||||||||||||
equity-based compensation | ||||||||||||||||||||||||
Other - net | — | — | — | (1 | ) | — | (1 | ) | ||||||||||||||||
Net cash (used in) provided by | (65 | ) | 389 | (870 | ) | (203 | ) | (61 | ) | (810 | ) | |||||||||||||
financing activities | ||||||||||||||||||||||||
Effect of currency on cash | — | — | — | (1 | ) | — | (1 | ) | ||||||||||||||||
Total (decrease) increase in cash | (3 | ) | 58 | — | 7 | — | 62 | |||||||||||||||||
Cash at the beginning of the period | 7 | 54 | 14 | 502 | — | 577 | ||||||||||||||||||
Cash at the end of the period | $ | 4 | $ | 112 | $ | 14 | $ | 509 | $ | — | $ | 639 | ||||||||||||
Acquisitions_of_Businesses_Det
Acquisitions of Businesses (Details) (USD $) | 12 Months Ended | ||||
In Millions, unless otherwise specified | Dec. 31, 2011 | Sep. 30, 2012 | Dec. 31, 2011 | Dec. 31, 2011 | Dec. 31, 2011 |
Cooper Industries plc [Member] | Rolec Comercial e Industrial S.A. [Member] | Jeil Hydraulics Co. Ltd. [Member] | Polimer Kaucuk Sanayi ve Pazarlama A.S. [Member] | Gycom Electrical Low-Voltage Power Distribution, Control and Automation [Member] | |
Electrical Systems and Services; Electrical Products [Member] | Electrical Systems and Services [Member] | Hydraulics [Member] | Hydraulics [Member] | Electrical Systems and Services [Member] | |
Business Acquisition [Line Items] | ' | ' | ' | ' | ' |
Business acquisition, revenue reported by acquired entity for last annual period | $5,409 | $85 | $189 | $335 | $24 |
Acquisitions_and_Sale_of_Busin1
Acquisitions and Sale of Businesses Sale of Aerospace Power Distribution Management Solutions and Integrated Cockpit Solutions (Details) (Subsequent Event [Member], USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Jun. 30, 2014 |
Subsequent Event [Member] | ' |
Subsequent Event [Line Items] | ' |
Sale price, Agreement to sell the Aerospace Power Distribution Management Solutions and Integrated Cockpit Solutions businesses to Safran | $270 |
Acquisition_Integration_Charge1
Acquisition Integration Charges and Transaction Costs (Details) (USD $) | 3 Months Ended | |
In Millions, except Per Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Acquisition integration charges | ' | ' |
Acquisition integration charges | $66 | $26 |
Transaction costs | ' | ' |
Transaction costs | 0 | 5 |
Total acquisition integration charges and transaction costs before income taxes | 66 | 31 |
Total after income taxes | 44 | 22 |
Per ordinary share - diluted | $0.09 | $0.05 |
Corporate | ' | ' |
Acquisition integration charges | ' | ' |
Acquisition integration charges | 7 | 6 |
Transaction costs | ' | ' |
Transaction costs | 0 | 5 |
Electrical Products [Member] | ' | ' |
Acquisition integration charges | ' | ' |
Acquisition integration charges | 29 | 3 |
Electrical Systems and Services [Member] | ' | ' |
Acquisition integration charges | ' | ' |
Acquisition integration charges | 26 | 5 |
Hydraulics [Member] | ' | ' |
Acquisition integration charges | ' | ' |
Acquisition integration charges | 4 | 12 |
Total business segments | ' | ' |
Acquisition integration charges | ' | ' |
Acquisition integration charges | $59 | $20 |
Acquisition_Integration_and_Re1
Acquisition Integration and Restructuring Charges Restructuring Charges (Details) (USD $) | 3 Months Ended | 12 Months Ended | 1 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2014 | Dec. 31, 2013 | Apr. 30, 2014 |
Subsequent Event [Member] | |||
Restructuring Charges and Reserve | ' | ' | ' |
Restructuring charges | $41 | $36 | $40 |
Restructuring reserve, current | $63 | $32 | ' |
Goodwill_Details
Goodwill (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Goodwill [Line Items] | ' | ' |
Goodwill | $14,450 | $14,495 |
Electrical Products [Member] | ' | ' |
Goodwill [Line Items] | ' | ' |
Goodwill | 7,153 | 7,189 |
Electrical Systems and Services [Member] | ' | ' |
Goodwill [Line Items] | ' | ' |
Goodwill | 4,508 | 4,517 |
Hydraulics [Member] | ' | ' |
Goodwill [Line Items] | ' | ' |
Goodwill | 1,384 | 1,385 |
Aerospace [Member] | ' | ' |
Goodwill [Line Items] | ' | ' |
Goodwill | 1,048 | 1,048 |
Vehicle [Member] | ' | ' |
Goodwill [Line Items] | ' | ' |
Goodwill | $357 | $356 |
Retirement_Benefits_Plans_Deta
Retirement Benefits Plans (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
United States pension benefit expense [Member] | ' | ' |
Retirement benefits plans expense | ' | ' |
Service cost | $29 | $32 |
Interest cost | 40 | 37 |
Expected return on plan assets | -61 | -57 |
Amortization | 23 | 33 |
Total | 31 | 45 |
Settlement loss | 34 | 6 |
Total expense | 65 | 51 |
Non-United States pension benefit expense [Member] | ' | ' |
Retirement benefits plans expense | ' | ' |
Service cost | 16 | 15 |
Interest cost | 22 | 20 |
Expected return on plan assets | -25 | -21 |
Amortization | 7 | 7 |
Total | 20 | 21 |
Settlement loss | 0 | 0 |
Total expense | 20 | 21 |
Other postretirement benefits expense [Member] | ' | ' |
Retirement benefits plans expense | ' | ' |
Service cost | 4 | 5 |
Interest cost | 9 | 9 |
Expected return on plan assets | -1 | -2 |
Amortization | 2 | 3 |
Total | 14 | 15 |
Settlement loss | 0 | 0 |
Total expense | $14 | $15 |
Legal_Contingencies_Details
Legal Contingencies (Details) | 3 Months Ended | ||||||||
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2010 | Dec. 31, 2010 | Dec. 31, 2013 | Sep. 28, 2012 | Aug. 19, 2011 | Jun. 09, 2011 | Dec. 31, 2013 |
Raysul [Member] | Raysul [Member] | Raysul [Member] | Raysul [Member] | Meritor [Member] | Meritor [Member] | Meritor [Member] | Meritor [Member] | Frisby Parties [Member] | |
USD ($) | BRL | USD ($) | BRL | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | |
Loss Contingencies [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loss Contingency Accrual | $35 | 79 | ' | ' | ' | ' | ' | ' | ' |
Loss Contingency Accrual, Provision | 8 | 19 | 27 | 60 | ' | ' | ' | ' | ' |
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 |
Income_Taxes_Details
Income Taxes (Details) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Income Tax Contingency [Line Items] | ' | ' |
Effective tax rate | 3.00% | 5.00% |
Equity_Changes_in_Shareholders
Equity Changes in Shareholders's Equity (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Changes in Shareholders' equity | ' | ' |
Balance at December 31, 2013 | $16,863 | ' |
Net income | 441 | 380 |
Other comprehensive income (loss) | 3 | -235 |
Cash dividends paid and accrued | -234 | ' |
Issuance of shares under equity-based compensation plans - net | 38 | ' |
Balance at March 31, 2014 | 17,111 | ' |
Eaton shareholders' equity [Member] | ' | ' |
Changes in Shareholders' equity | ' | ' |
Balance at December 31, 2013 | 16,791 | ' |
Net income | 439 | ' |
Other comprehensive income (loss) | 3 | ' |
Cash dividends paid and accrued | -234 | ' |
Issuance of shares under equity-based compensation plans - net | 38 | ' |
Balance at March 31, 2014 | 17,037 | ' |
Noncontrolling interests [Member] | ' | ' |
Changes in Shareholders' equity | ' | ' |
Balance at December 31, 2013 | 72 | ' |
Net income | 2 | ' |
Other comprehensive income (loss) | 0 | ' |
Cash dividends paid and accrued | 0 | ' |
Issuance of shares under equity-based compensation plans - net | 0 | ' |
Balance at March 31, 2014 | $74 | ' |
Changes_in_Accumulated_Other_C
Changes in Accumulated Other Comprehensive (Loss) Income (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Other comprehensive income (loss) | $3 | ($235) |
Cash flow hedges [Member] | ' | ' |
Balance at December 31, 2013 | 5 | ' |
Other comprehensive (loss) income before reclassifications | 1 | ' |
Amounts reclassified from Accumulated other comprehensive (loss) income | -1 | ' |
Other comprehensive income (loss) | 0 | ' |
Balance at March 31, 2014 | 5 | ' |
Accumulated Other Comprehensive Income (Loss) [Member] | ' | ' |
Balance at December 31, 2013 | -1,560 | ' |
Other comprehensive (loss) income before reclassifications | -37 | ' |
Amounts reclassified from Accumulated other comprehensive (loss) income | 40 | ' |
Other comprehensive income (loss) | 3 | ' |
Balance at March 31, 2014 | -1,557 | ' |
Currency translation and related hedging instruments [Member] | ' | ' |
Balance at December 31, 2013 | -395 | ' |
Other comprehensive (loss) income before reclassifications | -47 | ' |
Amounts reclassified from Accumulated other comprehensive (loss) income | 0 | ' |
Other comprehensive income (loss) | -47 | ' |
Balance at March 31, 2014 | -442 | ' |
Pension and other postretirement benefits [Member] | ' | ' |
Balance at December 31, 2013 | -1,170 | ' |
Other comprehensive (loss) income before reclassifications | 9 | ' |
Amounts reclassified from Accumulated other comprehensive (loss) income | 41 | ' |
Other comprehensive income (loss) | 50 | ' |
Balance at March 31, 2014 | ($1,120) | ' |
Reclassifications_Out_of_Accum
Reclassifications Out of Accumulated Other Comprehensive Loss (Details) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | |
Consolidated Statements of Income classification for currency exchange contracts reclassifications out of Accumulated other comprehensive income (loss) - Cost of products sold | $3,858 | $3,735 | |
Consolidated Statements of Income classification for reclassifications out of AOCI, tax impact - Income tax (benefit) expense | -12 | -20 | |
Consolidated Statements of Income classification for total AOCI reclassifications for the period, net of tax - Net income attributable to Eaton ordinary shareholders | 439 | 378 | |
Reclassification out of Accumulated other comprehensive loss [Member] | ' | ' | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | |
Consolidated Statements of Income classification for total AOCI reclassifications for the period, net of tax - Net income attributable to Eaton ordinary shareholders | -40 | ' | |
Reclassification out of Accumulated other comprehensive loss [Member] | Amortization of defined benefit pension items [Member] | ' | ' | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | |
Actuarial loss - Other comprehensive (income) loss, reclassification adjustment from AOCI, pension and other postretirement benefit plans, before tax, total | -66 | [1] | ' |
Consolidated Statements of Income classification for reclassifications out of AOCI, tax impact - Income tax (benefit) expense | 25 | ' | |
Consolidated Statements of Income classification for total AOCI reclassifications for the period, net of tax - Net income attributable to Eaton ordinary shareholders | -41 | ' | |
Reclassification out of Accumulated other comprehensive loss [Member] | Loss on cash flow hedges [Member] | ' | ' | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | |
Consolidated Statements of Income classification for reclassifications out of AOCI, tax impact - Income tax (benefit) expense | -1 | ' | |
Consolidated Statements of Income classification for total AOCI reclassifications for the period, net of tax - Net income attributable to Eaton ordinary shareholders | 1 | ' | |
Reclassification out of Accumulated other comprehensive loss [Member] | Loss on cash flow hedges [Member] | Currency exchange contracts [Member] | ' | ' | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | |
Consolidated Statements of Income classification for currency exchange contracts reclassifications out of Accumulated other comprehensive income (loss) - Cost of products sold | $2 | ' | |
[1] | These components of Accumulated other comprehensive loss are included in the computation of net periodic pension cost. See Note 5 for additional information about defined benefit pension items. |
Calculation_of_Net_Income_per_
Calculation of Net Income per Ordinary Share (Details) (USD $) | 3 Months Ended | |
In Millions, except Per Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Calculation of net income per ordinary share attributable to ordinary shareholders | ' | ' |
Net income attributable to Eaton ordinary shareholders | $439 | $378 |
Weighted-average number of ordinary shares outstanding - diluted | 478.8 | 475.1 |
Less dilutive effect of equity-based compensation | 3 | 3.2 |
Weighted-average number of ordinary shares outstanding - basic | 475.8 | 471.9 |
Stock options excluded from calculation of diluted net income per ordinary share | 0.1 | 0.1 |
Net income per ordinary share | ' | ' |
Diluted | $0.92 | $0.79 |
Basic | $0.92 | $0.80 |
Fair_Value_Measurements_Detail
Fair Value Measurements (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||||
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items] | ' | ' | ' | ' |
Cash | $784 | $915 | $639 | $577 |
Short-term investments | 360 | 794 | ' | ' |
Net derivative contracts | 1 | -35 | ' | ' |
Long-term debt converted to floating interest rates by interest rate swaps - net | -10 | -39 | ' | ' |
Quoted prices in active markets for identical assets (Level 1) [Member] | ' | ' | ' | ' |
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items] | ' | ' | ' | ' |
Cash | 784 | 915 | ' | ' |
Short-term investments | 360 | 794 | ' | ' |
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] | ' | ' | ' | ' |
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items] | ' | ' | ' | ' |
Cash | 0 | 0 | ' | ' |
Short-term investments | 0 | 0 | ' | ' |
Net derivative contracts | 1 | -35 | ' | ' |
Long-term debt converted to floating interest rates by interest rate swaps - net | -10 | -39 | ' | ' |
Unobservable inputs (Level 3) [Member] | ' | ' | ' | ' |
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items] | ' | ' | ' | ' |
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_Other_
Fair Value Measurements Other Fair Value Measurements (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Fair Value Disclosures [Abstract] | ' | ' |
Carrying value of long-term debt and current portion of long-term debt | $9,307 | $9,536 |
Fair value of long-term debt and current portion of long-term debt | $9,683 | $9,665 |
Derivative_Financial_Instrumen2
Derivative Financial Instruments and Hedging Activities (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Dec. 31, 2013 |
Derivatives, Fair Value [Line Items] | ' | ' |
Debt denominated in foreign currency designated as non-derivative net investment hedging instrument | $97 | $95 |
Percentage of intercompany balance sheet exposure | 100.00% | ' |
Other current assets [Member] | ' | ' |
Derivatives designated as hedges | ' | ' |
Derivative asset designated as hedging instrument | 12 | 13 |
Other long-term assets [Member] | ' | ' |
Derivatives designated as hedges | ' | ' |
Derivative asset designated as hedging instrument | 39 | 36 |
Other current liabilities [Member] | ' | ' |
Derivatives designated as hedges | ' | ' |
Derivative liability designated as hedging instrument | 3 | 4 |
Other long-term liabilities [Member] | ' | ' |
Derivatives designated as hedges | ' | ' |
Derivative liability designated as hedging instrument | 49 | 76 |
Currency exchange contracts [Member] | ' | ' |
Derivatives not designated as hedges | ' | ' |
Period of derivatives not designated as hedges | '1 to 12 months | '1 to 12 months |
Currency exchange contracts [Member] | Other current assets [Member] | ' | ' |
Derivatives not designated as hedges | ' | ' |
Derivative instruments not designated as hedging instruments, asset, at fair value | 23 | 22 |
Currency exchange contracts [Member] | Other current liabilities [Member] | ' | ' |
Derivatives not designated as hedges | ' | ' |
Derivative instruments not designated as hedging instruments, liability, at fair value | 21 | 26 |
Fair Value Hedging [Member] | Fixed-to-floating interest rate swaps [Member] | ' | ' |
Derivatives designated as hedges | ' | ' |
Period of derivatives designated as hedges | '3 to 20 years | '3 months to 20 years |
Fair Value Hedging [Member] | Fixed-to-floating interest rate swaps [Member] | Other current assets [Member] | ' | ' |
Derivatives designated as hedges | ' | ' |
Derivative asset designated as hedging instrument | 0 | 1 |
Fair Value Hedging [Member] | Fixed-to-floating interest rate swaps [Member] | Other long-term assets [Member] | ' | ' |
Derivatives designated as hedges | ' | ' |
Derivative asset designated as hedging instrument | 39 | 36 |
Fair Value Hedging [Member] | Fixed-to-floating interest rate swaps [Member] | Other current liabilities [Member] | ' | ' |
Derivatives designated as hedges | ' | ' |
Derivative liability designated as hedging instrument | 0 | 0 |
Fair Value Hedging [Member] | Fixed-to-floating interest rate swaps [Member] | Other long-term liabilities [Member] | ' | ' |
Derivatives designated as hedges | ' | ' |
Derivative liability designated as hedging instrument | 49 | 76 |
Cash Flow Hedging [Member] | Floating-to-fixed interest rate swaps [Member] | ' | ' |
Derivatives designated as hedges | ' | ' |
Period of derivatives designated as hedges | '3 months | '6 months |
Cash Flow Hedging [Member] | Floating-to-fixed interest rate swaps [Member] | Other current assets [Member] | ' | ' |
Derivatives designated as hedges | ' | ' |
Derivative asset designated as hedging instrument | 0 | 0 |
Cash Flow Hedging [Member] | Floating-to-fixed interest rate swaps [Member] | Other long-term assets [Member] | ' | ' |
Derivatives designated as hedges | ' | ' |
Derivative asset designated as hedging instrument | 0 | 0 |
Cash Flow Hedging [Member] | Floating-to-fixed interest rate swaps [Member] | Other current liabilities [Member] | ' | ' |
Derivatives designated as hedges | ' | ' |
Derivative liability designated as hedging instrument | 0 | 1 |
Cash Flow Hedging [Member] | Floating-to-fixed interest rate swaps [Member] | Other long-term liabilities [Member] | ' | ' |
Derivatives designated as hedges | ' | ' |
Derivative liability designated as hedging instrument | 0 | 0 |
Cash Flow Hedging [Member] | Currency exchange contracts [Member] | ' | ' |
Derivatives designated as hedges | ' | ' |
Period of derivatives designated as hedges | '12 to 36 months | '12 to 36 months |
Cash Flow Hedging [Member] | Currency exchange contracts [Member] | Other current assets [Member] | ' | ' |
Derivatives designated as hedges | ' | ' |
Derivative asset designated as hedging instrument | 12 | 12 |
Cash Flow Hedging [Member] | Currency exchange contracts [Member] | Other long-term assets [Member] | ' | ' |
Derivatives designated as hedges | ' | ' |
Derivative asset designated as hedging instrument | 0 | 0 |
Cash Flow Hedging [Member] | Currency exchange contracts [Member] | Other current liabilities [Member] | ' | ' |
Derivatives designated as hedges | ' | ' |
Derivative liability designated as hedging instrument | 3 | 3 |
Cash Flow Hedging [Member] | Currency exchange contracts [Member] | Other long-term liabilities [Member] | ' | ' |
Derivatives designated as hedges | ' | ' |
Derivative liability designated as hedging instrument | 0 | 0 |
Cash Flow Hedging [Member] | Commodity contracts [Member] | ' | ' |
Derivatives designated as hedges | ' | ' |
Period of derivatives designated as hedges | '1 to 12 months | '1 to 12 months |
Cash Flow Hedging [Member] | Commodity contracts [Member] | Other current assets [Member] | ' | ' |
Derivatives designated as hedges | ' | ' |
Derivative asset designated as hedging instrument | 0 | 0 |
Cash Flow Hedging [Member] | Commodity contracts [Member] | Other long-term assets [Member] | ' | ' |
Derivatives designated as hedges | ' | ' |
Derivative asset designated as hedging instrument | 0 | 0 |
Cash Flow Hedging [Member] | Commodity contracts [Member] | Other current liabilities [Member] | ' | ' |
Derivatives designated as hedges | ' | ' |
Derivative liability designated as hedging instrument | 0 | 0 |
Cash Flow Hedging [Member] | Commodity contracts [Member] | Other long-term 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 [Member] | ' | ' |
Derivatives not designated as hedges | ' | ' |
Notional amount | 3,290 | 3,090 |
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Floating-to-fixed interest rate swaps [Member] | ' | ' |
Derivatives not designated as hedges | ' | ' |
Notional amount | 300 | 300 |
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Currency exchange contracts [Member] | ' | ' |
Derivatives not designated as hedges | ' | ' |
Notional amount | 495 | 393 |
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Commodity contracts [Member] | ' | ' |
Derivatives not designated as hedges | ' | ' |
Notional amount | 1 | 1 |
Not Designated as Hedging Instrument [Member] | Currency exchange contracts [Member] | ' | ' |
Derivatives not designated as hedges | ' | ' |
Notional amount | $4,160 | $4,277 |
Amounts_Recognized_in_Accumula
Amounts Recognized in Accumulated Other Comprehensive Income (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Interest expense - net [Member] | Fair Value Hedging [Member] | ' | ' |
Amounts recognized in net income | ' | ' |
Gain (loss) recognized in net income | $0 | $0 |
Fixed-to-floating interest rate swaps [Member] | Interest expense - net [Member] | Fair Value Hedging [Member] | ' | ' |
Amounts recognized in net income | ' | ' |
Gain (loss) recognized in net income | 29 | -8 |
Currency exchange contracts [Member] | Cost of products sold [Member] | Cash flow hedges [Member] | ' | ' |
Amounts recognized in accumulated other comprehensive income (loss) | ' | ' |
Gain (loss) recognized in accumulated other comprehensive income (loss) | 2 | -9 |
Gain (loss) reclassified from accumulated other comprehensive income (loss) | 2 | 1 |
Related long term debt converted to floating interest rates by interest rate swaps [Member] | Interest expense - net [Member] | Fair Value Hedging [Member] | ' | ' |
Amounts recognized in net income | ' | ' |
Gain (loss) recognized in net income | ($29) | $8 |
Inventory_Details
Inventory (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Inventory Disclosure [Abstract] | ' | ' |
Raw materials | $1,103 | $955 |
Work-in-process | 323 | 428 |
Finished goods | 1,226 | 1,115 |
Inventory at FIFO | 2,652 | 2,498 |
Excess of FIFO over LIFO cost | -120 | -116 |
Total inventory | $2,532 | $2,382 |
Business_Segment_Information_D
Business Segment Information (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Business Segment Information | ' | ' |
Net sales | $5,492 | $5,310 |
Interest expense - net | 62 | 75 |
Pension and other postretirement benefits expense | -99 | -87 |
Other corporate expense - net | -5 | -10 |
Income before income taxes | 453 | 400 |
Income tax expense | 12 | 20 |
Net income | 441 | 380 |
Less net income for noncontrolling interests | -2 | -2 |
Net income attributable to Eaton ordinary shareholders | 439 | 378 |
Electrical Products [Member] | ' | ' |
Business Segment Information | ' | ' |
Net sales | 1,726 | 1,660 |
Segment operating profit | 250 | 241 |
Electrical Systems and Services [Member] | ' | ' |
Business Segment Information | ' | ' |
Net sales | 1,524 | 1,521 |
Segment operating profit | 169 | 210 |
Hydraulics [Member] | ' | ' |
Business Segment Information | ' | ' |
Net sales | 782 | 756 |
Segment operating profit | 108 | 78 |
Aerospace [Member] | ' | ' |
Business Segment Information | ' | ' |
Net sales | 464 | 434 |
Segment operating profit | 62 | 62 |
Vehicle [Member] | ' | ' |
Business Segment Information | ' | ' |
Net sales | 996 | 939 |
Segment operating profit | 151 | 132 |
Corporate | ' | ' |
Business Segment Information | ' | ' |
Amortization of intangible assets | -110 | -107 |
Interest expense - net | -62 | -75 |
Pension and other postretirement benefits expense | -51 | -38 |
Inventory step-up adjustment | 0 | -33 |
Other corporate expense - net | -64 | -70 |
Total business segments | ' | ' |
Business Segment Information | ' | ' |
Segment operating profit | $740 | $723 |
Condensed_Consolidating_Financ2
Condensed Consolidating Financial Information (Details) (USD $) | Nov. 20, 2012 |
In Millions, unless otherwise specified | |
Condensed Consolidating Financial Information [Abstract] | ' |
Eaton Corp. and certain other subsidiaries guarantee of Senior Debt | 100.00% |
Issuance of senior notes | $4,900 |
Condensed_Consolidating_Financ3
Condensed Consolidating Financial Information Condensed Income Statement (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Condensed Income Statements, Captions [Line Items] | ' | ' |
Net sales | $5,492 | $5,310 |
Cost of products sold | 3,858 | 3,735 |
Selling and administrative expense | 962 | 958 |
Research and development expense | 162 | 152 |
Interest expense (income) - net | 62 | 75 |
Other expense (income) - net | -5 | -10 |
Equity in (earnings) loss of subsidiaries, net of tax | 0 | 0 |
Intercompany expense (income) - net | 0 | 0 |
Income before income taxes | 453 | 400 |
Income tax (benefit) expense | 12 | 20 |
Net income | 441 | 380 |
Less net income for noncontrolling interests | -2 | -2 |
Net income attributable to Eaton ordinary shareholders | 439 | 378 |
Other comprehensive income (loss) | 3 | -235 |
Total comprehensive income attributable to Eaton ordinary shareholders | 442 | 143 |
Eaton Corporation plc [Member] | ' | ' |
Condensed Income Statements, Captions [Line Items] | ' | ' |
Net sales | 0 | 0 |
Cost of products sold | 0 | 0 |
Selling and administrative expense | 2 | 2 |
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 | -469 | -444 |
Intercompany expense (income) - net | 28 | 64 |
Income before income taxes | 439 | 378 |
Income tax (benefit) expense | 0 | 0 |
Net income | 439 | 378 |
Less net income for noncontrolling interests | 0 | 0 |
Net income attributable to Eaton ordinary shareholders | 439 | 378 |
Other comprehensive income (loss) | 3 | -235 |
Total comprehensive income attributable to Eaton ordinary shareholders | 442 | 143 |
Eaton Corporation [Member] | ' | ' |
Condensed Income Statements, Captions [Line Items] | ' | ' |
Net sales | 1,667 | 1,588 |
Cost of products sold | 1,342 | 1,239 |
Selling and administrative expense | 361 | 341 |
Research and development expense | 60 | 58 |
Interest expense (income) - net | 59 | 74 |
Other expense (income) - net | 5 | -5 |
Equity in (earnings) loss of subsidiaries, net of tax | -207 | -309 |
Intercompany expense (income) - net | -71 | -102 |
Income before income taxes | 118 | 292 |
Income tax (benefit) expense | -25 | -2 |
Net income | 143 | 294 |
Less net income for noncontrolling interests | 0 | 0 |
Net income attributable to Eaton ordinary shareholders | 143 | 294 |
Other comprehensive income (loss) | 28 | -22 |
Total comprehensive income attributable to Eaton ordinary shareholders | 171 | 272 |
Guarantors [Member] | ' | ' |
Condensed Income Statements, Captions [Line Items] | ' | ' |
Net sales | 1,641 | 1,573 |
Cost of products sold | 1,218 | 1,195 |
Selling and administrative expense | 200 | 198 |
Research and development expense | 50 | 47 |
Interest expense (income) - net | 7 | 7 |
Other expense (income) - net | 3 | 8 |
Equity in (earnings) loss of subsidiaries, net of tax | -485 | -567 |
Intercompany expense (income) - net | 120 | 176 |
Income before income taxes | 528 | 509 |
Income tax (benefit) expense | -7 | -37 |
Net income | 535 | 546 |
Less net income for noncontrolling interests | 0 | 0 |
Net income attributable to Eaton ordinary shareholders | 535 | 546 |
Other comprehensive income (loss) | 23 | -233 |
Total comprehensive income attributable to Eaton ordinary shareholders | 558 | 313 |
Other subsidiaries [Member] | ' | ' |
Condensed Income Statements, Captions [Line Items] | ' | ' |
Net sales | 3,291 | 3,273 |
Cost of products sold | 2,392 | 2,425 |
Selling and administrative expense | 399 | 417 |
Research and development expense | 52 | 47 |
Interest expense (income) - net | -6 | -6 |
Other expense (income) - net | -13 | -13 |
Equity in (earnings) loss of subsidiaries, net of tax | -201 | -166 |
Intercompany expense (income) - net | -77 | -138 |
Income before income taxes | 745 | 707 |
Income tax (benefit) expense | 49 | 59 |
Net income | 696 | 648 |
Less net income for noncontrolling interests | -2 | -2 |
Net income attributable to Eaton ordinary shareholders | 694 | 646 |
Other comprehensive income (loss) | -15 | -391 |
Total comprehensive income attributable to Eaton ordinary shareholders | 679 | 255 |
Consolidating adjustments [Member] | ' | ' |
Condensed Income Statements, Captions [Line Items] | ' | ' |
Net sales | -1,107 | -1,124 |
Cost of products sold | -1,094 | -1,124 |
Selling and administrative expense | 0 | 0 |
Research and development expense | 0 | 0 |
Interest expense (income) - net | 2 | 0 |
Other expense (income) - net | 0 | 0 |
Equity in (earnings) loss of subsidiaries, net of tax | 1,362 | 1,486 |
Intercompany expense (income) - net | 0 | 0 |
Income before income taxes | -1,377 | -1,486 |
Income tax (benefit) expense | -5 | 0 |
Net income | -1,372 | -1,486 |
Less net income for noncontrolling interests | 0 | 0 |
Net income attributable to Eaton ordinary shareholders | -1,372 | -1,486 |
Other comprehensive income (loss) | -36 | 646 |
Total comprehensive income attributable to Eaton ordinary shareholders | ($1,408) | ($840) |
Condensed_Consolidating_Financ4
Condensed Consolidating Financial Information Condensed Balance Sheet (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||||
Condensed Balance Sheet Statements, Captions [Line Items] | ' | ' | ' | ' |
Cash | $784 | $915 | $639 | $577 |
Short-term investments | 360 | 794 | ' | ' |
Accounts receivable - net | 3,889 | 3,648 | ' | ' |
Intercompany accounts receivable | 0 | 0 | ' | ' |
Inventory | 2,532 | 2,382 | ' | ' |
Prepaid expenses other current assets | 1,118 | 992 | ' | ' |
Total current assets | 8,683 | 8,731 | ' | ' |
Property, plant and equipment - net | 3,806 | 3,833 | ' | ' |
Goodwill | 14,450 | 14,495 | ' | ' |
Other intangible assets | 7,078 | 7,186 | ' | ' |
Deferred income taxes | 257 | 240 | ' | ' |
Investment in subsidiaries | 0 | 0 | ' | ' |
Intercompany loans receivables | 0 | 0 | ' | ' |
Other assets | 988 | 1,006 | ' | ' |
Total assets | 35,262 | 35,491 | ' | ' |
Short-term debt | 8 | 13 | ' | ' |
Current portion of long-term debt | 316 | 567 | ' | ' |
Accounts payable | 2,076 | 1,960 | ' | ' |
Intercompany accounts payable | 0 | 0 | ' | ' |
Accrued compensation | 334 | 461 | ' | ' |
Other current liabilities | 2,071 | 1,913 | ' | ' |
Total current liabilities | 4,805 | 4,914 | ' | ' |
Long-term debt | 8,991 | 8,969 | ' | ' |
Pension liabilities | 1,228 | 1,465 | ' | ' |
Other postretirement benefits liabilities | 666 | 668 | ' | ' |
Deferred income taxes | 1,296 | 1,313 | ' | ' |
Intercompany loans payable | 0 | 0 | ' | ' |
Other noncurrent liabilities | 1,165 | 1,299 | ' | ' |
Total noncurrent liabilities | 13,346 | 13,714 | ' | ' |
Eaton shareholders' equity | 17,037 | 16,791 | ' | ' |
Noncontrolling interests | 74 | 72 | ' | ' |
Total equity | 17,111 | 16,863 | ' | ' |
Total liabilities and equity | 35,262 | 35,491 | ' | ' |
Eaton Corporation plc [Member] | ' | ' | ' | ' |
Condensed Balance Sheet Statements, Captions [Line Items] | ' | ' | ' | ' |
Cash | 8 | 3 | 4 | 7 |
Short-term investments | 0 | 0 | ' | ' |
Accounts receivable - net | 0 | 0 | ' | ' |
Intercompany accounts receivable | 10 | 5 | ' | ' |
Inventory | 0 | 0 | ' | ' |
Prepaid expenses other current assets | 0 | 0 | ' | ' |
Total current assets | 18 | 8 | ' | ' |
Property, plant and equipment - net | 0 | 0 | ' | ' |
Goodwill | 0 | 0 | ' | ' |
Other intangible assets | 0 | 0 | ' | ' |
Deferred income taxes | 0 | 0 | ' | ' |
Investment in subsidiaries | 25,427 | 24,940 | ' | ' |
Intercompany loans receivables | 0 | 0 | ' | ' |
Other assets | 0 | 0 | ' | ' |
Total assets | 25,445 | 24,948 | ' | ' |
Short-term debt | 0 | 0 | ' | ' |
Current portion of long-term debt | 0 | 0 | ' | ' |
Accounts payable | 0 | 0 | ' | ' |
Intercompany accounts payable | 10 | 4 | ' | ' |
Accrued compensation | 0 | 0 | ' | ' |
Other current liabilities | 10 | 5 | ' | ' |
Total current liabilities | 20 | 9 | ' | ' |
Long-term debt | 0 | 0 | ' | ' |
Pension liabilities | 0 | 0 | ' | ' |
Other postretirement benefits liabilities | 0 | 0 | ' | ' |
Deferred income taxes | 0 | 0 | ' | ' |
Intercompany loans payable | 8,388 | 8,148 | ' | ' |
Other noncurrent liabilities | 0 | 0 | ' | ' |
Total noncurrent liabilities | 8,388 | 8,148 | ' | ' |
Eaton shareholders' equity | 17,037 | 16,791 | ' | ' |
Noncontrolling interests | 0 | 0 | ' | ' |
Total equity | 17,037 | 16,791 | ' | ' |
Total liabilities and equity | 25,445 | 24,948 | ' | ' |
Eaton Corporation [Member] | ' | ' | ' | ' |
Condensed Balance Sheet Statements, Captions [Line Items] | ' | ' | ' | ' |
Cash | 46 | 51 | 112 | 54 |
Short-term investments | 0 | 0 | ' | ' |
Accounts receivable - net | 506 | 473 | ' | ' |
Intercompany accounts receivable | 682 | 471 | ' | ' |
Inventory | 368 | 344 | ' | ' |
Prepaid expenses other current assets | 473 | 458 | ' | ' |
Total current assets | 2,075 | 1,797 | ' | ' |
Property, plant and equipment - net | 966 | 982 | ' | ' |
Goodwill | 1,382 | 1,382 | ' | ' |
Other intangible assets | 207 | 211 | ' | ' |
Deferred income taxes | 826 | 839 | ' | ' |
Investment in subsidiaries | 9,057 | 8,853 | ' | ' |
Intercompany loans receivables | 7,872 | 8,019 | ' | ' |
Other assets | 417 | 450 | ' | ' |
Total assets | 22,802 | 22,533 | ' | ' |
Short-term debt | 0 | 0 | ' | ' |
Current portion of long-term debt | 301 | 552 | ' | ' |
Accounts payable | 475 | 440 | ' | ' |
Intercompany accounts payable | 3,609 | 3,751 | ' | ' |
Accrued compensation | 48 | 140 | ' | ' |
Other current liabilities | 667 | 547 | ' | ' |
Total current liabilities | 5,100 | 5,430 | ' | ' |
Long-term debt | 7,720 | 7,693 | ' | ' |
Pension liabilities | 375 | 546 | ' | ' |
Other postretirement benefits liabilities | 402 | 402 | ' | ' |
Deferred income taxes | 0 | 0 | ' | ' |
Intercompany loans payable | 2,669 | 2,113 | ' | ' |
Other noncurrent liabilities | 545 | 652 | ' | ' |
Total noncurrent liabilities | 11,711 | 11,406 | ' | ' |
Eaton shareholders' equity | 5,991 | 5,697 | ' | ' |
Noncontrolling interests | 0 | 0 | ' | ' |
Total equity | 5,991 | 5,697 | ' | ' |
Total liabilities and equity | 22,802 | 22,533 | ' | ' |
Guarantors [Member] | ' | ' | ' | ' |
Condensed Balance Sheet Statements, Captions [Line Items] | ' | ' | ' | ' |
Cash | 12 | 10 | 14 | 14 |
Short-term investments | 35 | 134 | ' | ' |
Accounts receivable - net | 986 | 922 | ' | ' |
Intercompany accounts receivable | 3,508 | 3,368 | ' | ' |
Inventory | 656 | 609 | ' | ' |
Prepaid expenses other current assets | 156 | 175 | ' | ' |
Total current assets | 5,353 | 5,218 | ' | ' |
Property, plant and equipment - net | 765 | 761 | ' | ' |
Goodwill | 6,301 | 6,350 | ' | ' |
Other intangible assets | 3,949 | 3,996 | ' | ' |
Deferred income taxes | 12 | 3 | ' | ' |
Investment in subsidiaries | 41,344 | 40,776 | ' | ' |
Intercompany loans receivables | 2,643 | 2,518 | ' | ' |
Other assets | 183 | 186 | ' | ' |
Total assets | 60,550 | 59,808 | ' | ' |
Short-term debt | 0 | 0 | ' | ' |
Current portion of long-term debt | 1 | 0 | ' | ' |
Accounts payable | 391 | 380 | ' | ' |
Intercompany accounts payable | 3,626 | 3,288 | ' | ' |
Accrued compensation | 42 | 37 | ' | ' |
Other current liabilities | 381 | 400 | ' | ' |
Total current liabilities | 4,441 | 4,105 | ' | ' |
Long-term debt | 1,259 | 1,266 | ' | ' |
Pension liabilities | 79 | 131 | ' | ' |
Other postretirement benefits liabilities | 171 | 171 | ' | ' |
Deferred income taxes | 1,287 | 1,303 | ' | ' |
Intercompany loans payable | 18,084 | 18,207 | ' | ' |
Other noncurrent liabilities | 155 | 162 | ' | ' |
Total noncurrent liabilities | 21,035 | 21,240 | ' | ' |
Eaton shareholders' equity | 35,074 | 34,463 | ' | ' |
Noncontrolling interests | 0 | 0 | ' | ' |
Total equity | 35,074 | 34,463 | ' | ' |
Total liabilities and equity | 60,550 | 59,808 | ' | ' |
Other subsidiaries [Member] | ' | ' | ' | ' |
Condensed Balance Sheet Statements, Captions [Line Items] | ' | ' | ' | ' |
Cash | 718 | 851 | 509 | 502 |
Short-term investments | 325 | 660 | ' | ' |
Accounts receivable - net | 2,397 | 2,253 | ' | ' |
Intercompany accounts receivable | 4,900 | 4,470 | ' | ' |
Inventory | 1,558 | 1,466 | ' | ' |
Prepaid expenses other current assets | 476 | 350 | ' | ' |
Total current assets | 10,374 | 10,050 | ' | ' |
Property, plant and equipment - net | 2,075 | 2,090 | ' | ' |
Goodwill | 6,767 | 6,763 | ' | ' |
Other intangible assets | 2,922 | 2,979 | ' | ' |
Deferred income taxes | 153 | 145 | ' | ' |
Investment in subsidiaries | 8,701 | 8,473 | ' | ' |
Intercompany loans receivables | 19,840 | 18,776 | ' | ' |
Other assets | 388 | 370 | ' | ' |
Total assets | 51,220 | 49,646 | ' | ' |
Short-term debt | 8 | 13 | ' | ' |
Current portion of long-term debt | 14 | 15 | ' | ' |
Accounts payable | 1,210 | 1,140 | ' | ' |
Intercompany accounts payable | 1,855 | 1,271 | ' | ' |
Accrued compensation | 244 | 284 | ' | ' |
Other current liabilities | 1,017 | 965 | ' | ' |
Total current liabilities | 4,348 | 3,688 | ' | ' |
Long-term debt | 17 | 16 | ' | ' |
Pension liabilities | 774 | 788 | ' | ' |
Other postretirement benefits liabilities | 93 | 95 | ' | ' |
Deferred income taxes | 743 | 757 | ' | ' |
Intercompany loans payable | 1,214 | 845 | ' | ' |
Other noncurrent liabilities | 465 | 485 | ' | ' |
Total noncurrent liabilities | 3,306 | 2,986 | ' | ' |
Eaton shareholders' equity | 43,499 | 42,906 | ' | ' |
Noncontrolling interests | 67 | 66 | ' | ' |
Total equity | 43,566 | 42,972 | ' | ' |
Total liabilities and equity | 51,220 | 49,646 | ' | ' |
Consolidating adjustments [Member] | ' | ' | ' | ' |
Condensed Balance Sheet Statements, Captions [Line Items] | ' | ' | ' | ' |
Cash | 0 | 0 | 0 | 0 |
Short-term investments | 0 | 0 | ' | ' |
Accounts receivable - net | 0 | 0 | ' | ' |
Intercompany accounts receivable | -9,100 | -8,314 | ' | ' |
Inventory | -50 | -37 | ' | ' |
Prepaid expenses other current assets | 13 | 9 | ' | ' |
Total current assets | -9,137 | -8,342 | ' | ' |
Property, plant and equipment - net | 0 | 0 | ' | ' |
Goodwill | 0 | 0 | ' | ' |
Other intangible assets | 0 | 0 | ' | ' |
Deferred income taxes | -734 | -747 | ' | ' |
Investment in subsidiaries | -84,529 | -83,042 | ' | ' |
Intercompany loans receivables | -30,355 | -29,313 | ' | ' |
Other assets | 0 | 0 | ' | ' |
Total assets | -124,755 | -121,444 | ' | ' |
Short-term debt | 0 | 0 | ' | ' |
Current portion of long-term debt | 0 | 0 | ' | ' |
Accounts payable | 0 | 0 | ' | ' |
Intercompany accounts payable | -9,100 | -8,314 | ' | ' |
Accrued compensation | 0 | 0 | ' | ' |
Other current liabilities | -4 | -4 | ' | ' |
Total current liabilities | -9,104 | -8,318 | ' | ' |
Long-term debt | -5 | -6 | ' | ' |
Pension liabilities | 0 | 0 | ' | ' |
Other postretirement benefits liabilities | 0 | 0 | ' | ' |
Deferred income taxes | -734 | -747 | ' | ' |
Intercompany loans payable | -30,355 | -29,313 | ' | ' |
Other noncurrent liabilities | 0 | 0 | ' | ' |
Total noncurrent liabilities | -31,094 | -30,066 | ' | ' |
Eaton shareholders' equity | -84,564 | -83,066 | ' | ' |
Noncontrolling interests | 7 | 6 | ' | ' |
Total equity | -84,557 | -83,060 | ' | ' |
Total liabilities and equity | ($124,755) | ($121,444) | ' | ' |
Condensed_Consolidating_Financ5
Condensed Consolidating Financial Information Condensed Statements of Cash Flows (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Condensed Cash Flow Statements, Captions [Line Items] | ' | ' |
Net cash provided by (used in) operating activities | $12 | $100 |
Capital expenditures for property, plant and equipment | -110 | -122 |
Sales of short-term investments - net | 431 | 132 |
Loans to affiliates | 0 | 0 |
Repayments of loans from affiliates | 0 | 0 |
Proceeds from sale of business | 3 | 761 |
Other - net | -20 | 2 |
Net cash provided by (used in) investing activities | 304 | 773 |
Payments on borrowings | -257 | -687 |
Proceeds from borrowings from affiliates | 0 | 0 |
Payments on borrowings from affiliates | 0 | 0 |
Other intercompany financing activities | 0 | 0 |
Cash dividends paid | -229 | -194 |
Exercise of employee stock options | 23 | 56 |
Excess tax benefit from equity-based compensation | 20 | 16 |
Other - net | 0 | -1 |
Net cash (used in) provided by financing activities | -443 | -810 |
Effect of currency on cash | -4 | -1 |
Total increase (decrease) in cash | -131 | 62 |
Cash at the beginning of the period | 915 | 577 |
Cash at the end of the period | 784 | 639 |
Eaton Corporation plc [Member] | ' | ' |
Condensed Cash Flow Statements, Captions [Line Items] | ' | ' |
Net cash provided by (used in) operating activities | 17 | 62 |
Capital expenditures for property, plant and equipment | 0 | 0 |
Sales of short-term investments - net | 0 | 0 |
Loans to affiliates | 0 | 0 |
Repayments of loans from affiliates | 0 | 0 |
Proceeds from sale of business | 0 | 0 |
Other - net | 0 | 0 |
Net cash provided by (used in) investing activities | 0 | 0 |
Payments on borrowings | 0 | 0 |
Proceeds from borrowings from affiliates | 0 | 0 |
Payments on borrowings from affiliates | 0 | 0 |
Other intercompany financing activities | 217 | 129 |
Cash dividends paid | -229 | -194 |
Exercise of employee stock options | 0 | 0 |
Excess tax benefit from equity-based compensation | 0 | 0 |
Other - net | ' | 0 |
Net cash (used in) provided by financing activities | -12 | -65 |
Effect of currency on cash | 0 | 0 |
Total increase (decrease) in cash | 5 | -3 |
Cash at the beginning of the period | 3 | 7 |
Cash at the end of the period | 8 | 4 |
Eaton Corporation [Member] | ' | ' |
Condensed Cash Flow Statements, Captions [Line Items] | ' | ' |
Net cash provided by (used in) operating activities | -463 | -301 |
Capital expenditures for property, plant and equipment | -25 | -51 |
Sales of short-term investments - net | 0 | 25 |
Loans to affiliates | -7 | -36 |
Repayments of loans from affiliates | 171 | 28 |
Proceeds from sale of business | 0 | 0 |
Other - net | -13 | 4 |
Net cash provided by (used in) investing activities | 126 | -30 |
Payments on borrowings | -251 | -676 |
Proceeds from borrowings from affiliates | 946 | 437 |
Payments on borrowings from affiliates | -510 | -131 |
Other intercompany financing activities | 104 | 687 |
Cash dividends paid | 0 | 0 |
Exercise of employee stock options | 23 | 56 |
Excess tax benefit from equity-based compensation | 20 | 16 |
Other - net | ' | 0 |
Net cash (used in) provided by financing activities | 332 | 389 |
Effect of currency on cash | 0 | 0 |
Total increase (decrease) in cash | -5 | 58 |
Cash at the beginning of the period | 51 | 54 |
Cash at the end of the period | 46 | 112 |
Guarantors [Member] | ' | ' |
Condensed Cash Flow Statements, Captions [Line Items] | ' | ' |
Net cash provided by (used in) operating activities | 182 | 778 |
Capital expenditures for property, plant and equipment | -29 | -18 |
Sales of short-term investments - net | 98 | 31 |
Loans to affiliates | 0 | 0 |
Repayments of loans from affiliates | 0 | 82 |
Proceeds from sale of business | 0 | 0 |
Other - net | -1 | -3 |
Net cash provided by (used in) investing activities | 68 | 92 |
Payments on borrowings | 0 | -8 |
Proceeds from borrowings from affiliates | 110 | 1 |
Payments on borrowings from affiliates | -304 | -171 |
Other intercompany financing activities | -54 | -692 |
Cash dividends paid | 0 | 0 |
Exercise of employee stock options | 0 | 0 |
Excess tax benefit from equity-based compensation | 0 | 0 |
Other - net | ' | 0 |
Net cash (used in) provided by financing activities | -248 | -870 |
Effect of currency on cash | 0 | 0 |
Total increase (decrease) in cash | 2 | 0 |
Cash at the beginning of the period | 10 | 14 |
Cash at the end of the period | 12 | 14 |
Other subsidiaries [Member] | ' | ' |
Condensed Cash Flow Statements, Captions [Line Items] | ' | ' |
Net cash provided by (used in) operating activities | 276 | -439 |
Capital expenditures for property, plant and equipment | -56 | -53 |
Sales of short-term investments - net | 333 | 76 |
Loans to affiliates | -1,056 | -438 |
Repayments of loans from affiliates | 814 | 303 |
Proceeds from sale of business | 3 | 761 |
Other - net | -6 | 1 |
Net cash provided by (used in) investing activities | 32 | 650 |
Payments on borrowings | -6 | -3 |
Proceeds from borrowings from affiliates | 7 | 36 |
Payments on borrowings from affiliates | -171 | -111 |
Other intercompany financing activities | -267 | -124 |
Cash dividends paid | 0 | 0 |
Exercise of employee stock options | 0 | 0 |
Excess tax benefit from equity-based compensation | 0 | 0 |
Other - net | ' | -1 |
Net cash (used in) provided by financing activities | -437 | -203 |
Effect of currency on cash | -4 | -1 |
Total increase (decrease) in cash | -133 | 7 |
Cash at the beginning of the period | 851 | 502 |
Cash at the end of the period | 718 | 509 |
Consolidating adjustments [Member] | ' | ' |
Condensed Cash Flow Statements, Captions [Line Items] | ' | ' |
Net cash provided by (used in) operating activities | 0 | 0 |
Capital expenditures for property, plant and equipment | 0 | 0 |
Sales of short-term investments - net | 0 | 0 |
Loans to affiliates | 1,063 | 474 |
Repayments of loans from affiliates | -985 | -413 |
Proceeds from sale of business | 0 | 0 |
Other - net | 0 | 0 |
Net cash provided by (used in) investing activities | 78 | 61 |
Payments on borrowings | 0 | 0 |
Proceeds from borrowings from affiliates | -1,063 | -474 |
Payments on borrowings from affiliates | 985 | 413 |
Other intercompany financing activities | 0 | 0 |
Cash dividends paid | 0 | 0 |
Exercise of employee stock options | 0 | 0 |
Excess tax benefit from equity-based compensation | 0 | 0 |
Other - net | ' | 0 |
Net cash (used in) provided by financing activities | -78 | -61 |
Effect of currency on cash | 0 | 0 |
Total increase (decrease) in cash | 0 | 0 |
Cash at the beginning of the period | 0 | 0 |
Cash at the end of the period | $0 | $0 |