Document_and_Entity_Informatio
Document and Entity Information Document | 3 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2015 |
Entity Information [Line Items] | |
Entity Registrant Name | Eaton Corp plc |
Trading Symbol | ETN |
Entity Central Index Key | 1551182 |
Document Type | 10-Q |
Document Period End Date | 31-Mar-15 |
Amendment Flag | FALSE |
Document Fiscal Year Focus | 2015 |
Document Fiscal Period Focus | Q1 |
Current Fiscal Year End Date | -19 |
Entity Well-known Seasoned Issuer | Yes |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Common Stock, Shares Outstanding | 467.1 |
Consolidated_Statements_of_Inc
Consolidated Statements of Income (USD $) | 3 Months Ended | |
In Millions, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Income Statement [Abstract] | ||
Net sales | $5,223 | $5,492 |
Cost of products sold | 3,593 | 3,858 |
Selling and administrative expense | 915 | 962 |
Research and development expense | 158 | 162 |
Interest expense - net | 57 | 62 |
Other income - net | -5 | -5 |
Income before income taxes | 505 | 453 |
Income tax expense | 38 | 12 |
Net income | 467 | 441 |
Less net income for noncontrolling interests | -1 | -2 |
Net income attributable to Eaton ordinary shareholders | $466 | $439 |
Net income per ordinary share | ||
Diluted | $0.99 | $0.92 |
Basic | $1 | $0.92 |
Weighted-average number of ordinary shares outstanding | ||
Diluted | 470 | 478.8 |
Basic | 467.9 | 475.8 |
Cash dividends declared per ordinary share | $0.55 | $0.49 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Net income | $467 | $441 |
Less net income for noncontrolling interests | -1 | -2 |
Net income attributable to Eaton ordinary shareholders | 466 | 439 |
Other comprehensive (loss) income, net of tax | ||
Currency translation and related hedging instruments | -720 | -47 |
Pensions and other postretirement benefits | 86 | 50 |
Other comprehensive (loss) income attributable to Eaton ordinary shareholders | -634 | 3 |
Total comprehensive (loss) income attributable to Eaton ordinary shareholders | ($168) | $442 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||||
Current assets | ||||
Cash | $663 | $781 | $784 | $915 |
Short-term investments | 139 | 245 | ||
Accounts receivable - net | 3,733 | 3,667 | ||
Inventory | 2,424 | 2,428 | ||
Deferred income taxes | 576 | 593 | ||
Prepaid expenses and other current assets | 405 | 386 | ||
Total current assets | 7,940 | 8,100 | ||
Property, plant and equipment - net | 3,634 | 3,750 | ||
Other noncurrent assets | ||||
Goodwill | 13,548 | 13,893 | ||
Other intangible assets | 6,317 | 6,556 | ||
Deferred income taxes | 220 | 228 | ||
Other assets | 1,037 | 1,002 | ||
Total assets | 32,696 | 33,529 | ||
Current liabilities | ||||
Short-term debt | 267 | 2 | ||
Current portion of long-term debt | 1,244 | 1,008 | ||
Accounts payable | 1,969 | 1,940 | ||
Accrued compensation | 282 | 420 | ||
Other current liabilities | 1,904 | 1,985 | ||
Total current liabilities | 5,666 | 5,355 | ||
Noncurrent liabilities | ||||
Long-term debt | 7,829 | 8,024 | ||
Pension liabilities | 1,530 | 1,812 | ||
Other postretirement benefits liabilities | 506 | 513 | ||
Deferred income taxes | 881 | 901 | ||
Other noncurrent liabilities | 1,020 | 1,085 | ||
Total noncurrent liabilities | 11,766 | 12,335 | ||
Shareholders' equity | ||||
Eaton shareholders' equity | 15,210 | 15,786 | ||
Noncontrolling interests | 54 | 53 | ||
Total equity | 15,264 | 15,839 | ||
Total liabilities and equity | $32,696 | $33,529 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Cash Flows (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Operating activities | ||
Net income | $467 | $441 |
Adjustments to reconcile to net cash provided by operating activities | ||
Depreciation and amortization | 226 | 249 |
Deferred income taxes | 14 | -24 |
Pension and other postretirement benefits expense | 76 | 99 |
Contributions to pension plans | -223 | -272 |
Contributions to other postretirement benefits plans | -9 | -12 |
Excess tax benefit from equity-based compensation | 0 | -20 |
Changes in working capital | -372 | -370 |
Other - net | -102 | -79 |
Net cash provided by operating activities | 77 | 12 |
Investing activities | ||
Cash paid for acquisitions of businesses, net of cash acquired | -38 | 0 |
Capital expenditures for property, plant and equipment | -105 | -110 |
Sales of short-term investments - net | 99 | 431 |
Proceeds from sale of businesses | 0 | 3 |
Other - net | -9 | -20 |
Net cash (used in) provided by investing activities | -53 | 304 |
Financing activities | ||
Proceeds from borrowings | 266 | 0 |
Payments on borrowings | -3 | -257 |
Cash dividends paid | -251 | -229 |
Exercise of employee stock options | 33 | 23 |
Repurchase of shares | 170 | 0 |
Excess tax benefit from equity-based compensation | 0 | 20 |
Other - net | -2 | 0 |
Net cash used in financing activities | -127 | -443 |
Effect of currency on cash | -15 | -4 |
Total decrease in cash | -118 | -131 |
Cash at the beginning of the period | 781 | 915 |
Cash at the end of the period | $663 | $784 |
Basis_of_Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2015 | |
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 United States generally accepted accounting principles (US GAAP) 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 2014 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. | |
Recently Issued Accounting Pronouncements | |
In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers (ASU 2014-09). This accounting standard supersedes all existing US GAAP revenue recognition guidance. Under ASU 2014-09, a company will recognize revenue when it transfers the control of promised goods or services to customers in an amount that reflects the consideration which the company expects to collect in exchange for those goods or services. ASU 2014-09 will require additional disclosures in the notes to the consolidated financial statements and is effective for annual and interim reporting periods beginning after December 15, 2016. In April 2015, the FASB proposed to defer the effective date of the new standard for one year. If the proposal is approved, then early adoption as of the original effective date would be permitted. Eaton is evaluating the impact of ASU 2014-09 and an estimate of the impact to the consolidated financial statements cannot be made at this time. |
Acquisition_and_Sale_of_Busine
Acquisition and Sale of Businesses | 3 Months Ended |
Mar. 31, 2015 | |
Business Combinations [Abstract] | |
ACQUISITION AND SALE OF BUSINESSES | ACQUISITION AND SALE OF BUSINESSES |
Acquisition of UK Safety Technology Manufacturer Oxalis Group Ltd. | |
On January 12, 2015, Eaton acquired Oxalis Group Ltd. (Oxalis). Oxalis is a manufacturer of closed-circuit television camera stations, public address and general alarm systems and other electrical products for the hazardous area, marine and industrial communications markets. Oxalis is reported within the Electrical Systems and Services business segment. | |
Sale of Aerospace Power Distribution Management Solutions and Integrated Cockpit Solutions | |
On May 9, 2014, Eaton sold the Aerospace Power Distribution Management Solutions and Integrated Cockpit Solutions businesses to Safran for $270, which resulted in a pre-tax gain of $154. |
Acquisition_Integration_Charge
Acquisition Integration Charges | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Acquisitions Integration Charges [Abstract] | ||||||||
ACQUISITION INTEGRATION CHARGES | ACQUISITION INTEGRATION CHARGES | |||||||
Eaton incurs integration charges related to acquired businesses. A summary of these charges follows: | ||||||||
Three months ended | ||||||||
31-Mar | ||||||||
2015 | 2014 | |||||||
Acquisition integration charges | ||||||||
Electrical Products | $ | 6 | $ | 29 | ||||
Electrical Systems and Services | 3 | 26 | ||||||
Hydraulics | 1 | 4 | ||||||
Total business segments | 10 | 59 | ||||||
Corporate | 1 | 7 | ||||||
Total acquisition integration charges before income taxes | $ | 11 | $ | 66 | ||||
Total after income taxes | $ | 7 | $ | 44 | ||||
Per ordinary share - diluted | $ | 0.02 | $ | 0.09 | ||||
Business segment integration charges during the first three months of 2015 and 2014 were related primarily to the integration of Cooper Industries plc (Cooper) to gain efficiencies in selling, marketing, traditional back-office functions and manufacturing and distribution. 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. See Note 13 for additional information about business segments. | ||||||||
Corporate integration charges in 2015 and 2014 were related 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. | ||||||||
The Cooper integration initiatives are expected to continue throughout 2015. |
Goodwill
Goodwill | 3 Months Ended | ||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||
GOODWILL | GOODWILL | ||||||||||||||||||||||||
A summary of goodwill follows: | |||||||||||||||||||||||||
Electrical Products | Electrical Systems and Services | Hydraulics | Aerospace | Vehicle | Total | ||||||||||||||||||||
31-Dec-14 | $ | 6,940 | $ | 4,314 | $ | 1,327 | $ | 962 | $ | 350 | $ | 13,893 | |||||||||||||
Additions | — | 22 | — | — | — | 22 | |||||||||||||||||||
Translation adjustments | (206 | ) | (98 | ) | (51 | ) | (6 | ) | (6 | ) | (367 | ) | |||||||||||||
31-Mar-15 | $ | 6,734 | $ | 4,238 | $ | 1,276 | $ | 956 | $ | 344 | $ | 13,548 | |||||||||||||
Retirement_Benefits_Plans
Retirement Benefits Plans | 3 Months Ended | |||||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
2015 | 2014 | 2015 | 2014 | 2015 | 2014 | |||||||||||||||||||
Service cost | $ | 31 | $ | 29 | $ | 18 | $ | 16 | $ | 2 | $ | 4 | ||||||||||||
Interest cost | 39 | 40 | 18 | 22 | 6 | 9 | ||||||||||||||||||
Expected return on plan assets | (66 | ) | (61 | ) | (25 | ) | (25 | ) | (1 | ) | (1 | ) | ||||||||||||
Amortization | 30 | 23 | 10 | 7 | — | 2 | ||||||||||||||||||
34 | 31 | 21 | 20 | 7 | 14 | |||||||||||||||||||
Settlement loss | 14 | 34 | — | — | — | — | ||||||||||||||||||
Total expense | $ | 48 | $ | 65 | $ | 21 | $ | 20 | $ | 7 | $ | 14 | ||||||||||||
Legal_Contingencies
Legal Contingencies | 3 Months Ended |
Mar. 31, 2015 | |
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, antitrust matters and employment-related matters. Eaton is also subject to asbestos claims from historic products which may have contained asbestos. Historically, significant insurance coverage has been available to cover costs associated with these claims. 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 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. and Eaton Holding S.à.r.l. This judgment is based on an alleged violation of an agency agreement between Raysul and Saturnia. At March 31, 2015, the Company has a total accrual of 85 Brazilian Reais related to this matter ($26 based on current exchange rates), comprised of 60 Brazilian Reais recognized in the fourth quarter of 2010 ($18 based on current exchange rates) with an additional 25 Brazilian Reais recognized through March 31, 2015 ($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 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 were denied. On February 2, 2015, a final appeal was filed with the Superior Court of Justice in Brasilia. 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. |
Income_Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES |
The effective income tax rate for the first quarter of 2015 was expense of 8% compared to expense of 3% for the first quarter of 2014. The increase in the effective income tax rate in first quarter of 2015 is primarily due to more income earned in higher tax jurisdictions including the United States. |
Equity
Equity | 3 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
Stockholders' Equity Note [Abstract] | ||||||||||||||||
EQUITY | EQUITY | |||||||||||||||
Eaton has an ordinary share repurchase program (2013 Program) that authorizes the repurchase of 40 million ordinary shares. During the first quarter of 2015, 2.4 million ordinary shares were repurchased under the 2013 Program in the open market at a total cost of $170. | ||||||||||||||||
The changes in Shareholders’ equity follow: | ||||||||||||||||
Eaton | Noncontrolling | Total | ||||||||||||||
shareholders’ | interests | equity | ||||||||||||||
equity | ||||||||||||||||
Balance at December 31, 2014 | $ | 15,786 | $ | 53 | $ | 15,839 | ||||||||||
Net income | 466 | 1 | 467 | |||||||||||||
Other comprehensive loss | (634 | ) | — | (634 | ) | |||||||||||
Cash dividends paid and accrued | (257 | ) | — | (257 | ) | |||||||||||
Issuance of shares under equity-based compensation plans - net | 19 | — | 19 | |||||||||||||
Repurchase of shares | (170 | ) | — | (170 | ) | |||||||||||
Balance at March 31, 2015 | $ | 15,210 | $ | 54 | $ | 15,264 | ||||||||||
The changes in Accumulated other comprehensive loss follow: | ||||||||||||||||
Currency translation and related hedging instruments | Pensions and other postretirement benefits | Cash flow | Total | |||||||||||||
hedges | ||||||||||||||||
Balance at December 31, 2014 | $ | (1,414 | ) | $ | (1,485 | ) | $ | — | $ | (2,899 | ) | |||||
Other comprehensive (loss) income | (720 | ) | 51 | 1 | (668 | ) | ||||||||||
before reclassifications | ||||||||||||||||
Amounts reclassified from Accumulated other | — | 35 | (1 | ) | 34 | |||||||||||
comprehensive loss | ||||||||||||||||
Net current-period Other comprehensive | (720 | ) | 86 | — | (634 | ) | ||||||||||
(loss) income | ||||||||||||||||
Balance at March 31, 2015 | $ | (2,134 | ) | $ | (1,399 | ) | $ | — | $ | (3,533 | ) | |||||
The reclassifications out of Accumulated other comprehensive loss follow: | ||||||||||||||||
Three months ended March 31, 2015 | Consolidated statements | |||||||||||||||
of income classification | ||||||||||||||||
Amortization of pensions and other postretirement benefits items | ||||||||||||||||
Actuarial loss and prior service cost | $ | (54 | ) | 1 | ||||||||||||
Tax benefit | 19 | |||||||||||||||
Total, net of tax | (35 | ) | ||||||||||||||
Gains and (losses) 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 | $ | (34 | ) | |||||||||||||
1 These components of Accumulated other comprehensive loss are included in the computation of net periodic benefit cost. See Note 5 for additional information about pension and other post retirement benefits 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) | 2015 | 2014 | ||||||||||||||
Net income attributable to Eaton ordinary shareholders | $ | 466 | $ | 439 | ||||||||||||
Weighted-average number of ordinary shares outstanding - diluted | 470 | 478.8 | ||||||||||||||
Less dilutive effect of equity-based compensation | 2.1 | 3 | ||||||||||||||
Weighted-average number of ordinary shares outstanding - basic | 467.9 | 475.8 | ||||||||||||||
Net income per ordinary share | ||||||||||||||||
Diluted | $ | 0.99 | $ | 0.92 | ||||||||||||
Basic | 1 | 0.92 | ||||||||||||||
For the first quarter 2015 and 2014, 0.9 million and 0.1 million stock options, respectively, were excluded from the calculation of diluted net income per ordinary share because the exercise price of the options exceeded the average market price of the ordinary shares during the period and their effect, accordingly, would have been antidilutive. |
Equitybased_Compensation_Notes
Equity-based Compensation (Notes) | 3 Months Ended |
Mar. 31, 2015 | |
Equity-based compensation [Abstract] | |
EQUITY-BASED COMPENSATION | EQUITY-BASED COMPENSATION |
In February 2015, the Compensation and Organization Committee of the Board of Directors approved the grant of performance share units (PSUs) to certain employees that vest based on the satisfaction of a three-year service period and the achievement of certain performance metrics. The maximum number of ordinary shares that may be issued under this grant award is 911,050. The fair value of these PSUs is determined based on the closing market price of the Company’s ordinary shares at the date of grant. Equity-based compensation expense is recognized over the period an employee is required to provide service based on the number of PSUs for which achievement of the performance objectives is probable. |
Fair_Value_Measurements
Fair Value Measurements | 3 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
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 | Level 1 | Level 2 | Level 3 | |||||||||||||
31-Mar-15 | ||||||||||||||||
Cash | $ | 663 | $ | 663 | $ | — | $ | — | ||||||||
Short-term investments | 139 | 139 | — | — | ||||||||||||
Net derivative contracts | 129 | — | 129 | — | ||||||||||||
Long-term debt converted to floating interest rates by | (122 | ) | — | (122 | ) | — | ||||||||||
interest rate swaps - net | ||||||||||||||||
December 31, 2014 | ||||||||||||||||
Cash | $ | 781 | $ | 781 | $ | — | $ | — | ||||||||
Short-term investments | 245 | 245 | — | — | ||||||||||||
Net derivative contracts | 70 | — | 70 | — | ||||||||||||
Long-term debt converted to floating interest rates by | (74 | ) | — | (74 | ) | — | ||||||||||
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 $9,073 and fair value of $9,679 at March 31, 2015 compared to $9,032 and $9,509, respectively, at December 31, 2014. The fair value of Eaton's debt instruments were estimated using prevailing market interest rates on debt with similar creditworthiness, terms and maturities and are considered a Level 2 fair value measurement. |
Derivative_Financial_Instrumen
Derivative Financial Instruments and Hedging Activities | 3 Months Ended | |||||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||||
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 on an after-tax basis as non-derivative net investment hedging instruments was $83 and $84 at March 31, 2015 and December 31, 2014, 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 | noncurrent | current | noncurrent | hedge | |||||||||||||||||||
assets | assets | liabilities | liabilities | |||||||||||||||||||||
31-Mar-15 | ||||||||||||||||||||||||
Derivatives designated as hedges | ||||||||||||||||||||||||
Fixed-to-floating interest rate swaps | $ | 3,440 | $ | — | $ | 122 | $ | — | $ | — | Fair value | 2 to 20 years | ||||||||||||
Currency exchange contracts | 412 | 16 | — | 8 | 8 | Cash flow | 1 to 36 months | |||||||||||||||||
Commodity contracts | 1 | — | — | — | — | Cash flow | 1 to 12 months | |||||||||||||||||
Total | $ | 16 | $ | 122 | $ | 8 | $ | 8 | ||||||||||||||||
Derivatives not designated as | ||||||||||||||||||||||||
hedges | ||||||||||||||||||||||||
Currency exchange contracts | $ | 4,313 | $ | 52 | $ | 45 | 1 to 12 months | |||||||||||||||||
Total | $ | 52 | $ | 45 | ||||||||||||||||||||
31-Dec-14 | ||||||||||||||||||||||||
Derivatives designated as hedges | ||||||||||||||||||||||||
Fixed-to-floating interest rate swaps | $ | 3,440 | $ | — | $ | 84 | $ | — | $ | 10 | Fair value | 2 to 19 years | ||||||||||||
Currency exchange contracts | 432 | 8 | 1 | 5 | 3 | Cash flow | 1 to 36 months | |||||||||||||||||
Commodity contracts | 1 | — | — | — | — | Cash flow | 1 to 12 months | |||||||||||||||||
Total | $ | 8 | $ | 85 | $ | 5 | $ | 13 | ||||||||||||||||
Derivatives not designated as | ||||||||||||||||||||||||
hedges | ||||||||||||||||||||||||
Currency exchange contracts | $ | 4,447 | $ | 47 | $ | 52 | 1 to 12 months | |||||||||||||||||
Total | $ | 47 | $ | 52 | ||||||||||||||||||||
The currency exchange contracts shown in the table above as derivatives not designated as hedges are primarily contracts entered into to manage currency volatility or exposure on intercompany sales and loans. While Eaton does not elect hedge accounting treatment for these derivatives, Eaton targets managing 100% of the intercompany balance sheet exposure to minimize the effect of currency volatility related to the movement of goods and services in the normal course of its operations. This activity represents the great majority of these currency exchange contracts. | ||||||||||||||||||||||||
Amounts recognized in Accumulated other comprehensive loss follow: | ||||||||||||||||||||||||
Location of gain | ||||||||||||||||||||||||
Gain recognized in | reclassified from | Gain reclassified | ||||||||||||||||||||||
other comprehensive | Accumulated other | from Accumulated other | ||||||||||||||||||||||
(loss) income | comprehensive loss | comprehensive loss | ||||||||||||||||||||||
Three months ended | Three months ended | |||||||||||||||||||||||
31-Mar | 31-Mar | |||||||||||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||||||||||
Derivatives designated as cash | ||||||||||||||||||||||||
flow hedges | ||||||||||||||||||||||||
Currency exchange contracts | $ | 2 | $ | 2 | Cost of products sold | $ | 2 | $ | 2 | |||||||||||||||
Amounts recognized in net income follow: | ||||||||||||||||||||||||
Three months ended | ||||||||||||||||||||||||
31-Mar | ||||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||||
Derivatives designated as fair value hedges | ||||||||||||||||||||||||
Fixed-to-floating interest rate swaps | $ | 48 | $ | 29 | ||||||||||||||||||||
Related long-term debt converted to floating interest | (48 | ) | (29 | ) | ||||||||||||||||||||
rates by interest rate swaps | ||||||||||||||||||||||||
$ | — | $ | — | |||||||||||||||||||||
Gains and losses described above were recognized in Interest expense - net. |
Inventory
Inventory | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Inventory Disclosure [Abstract] | ||||||||
INVENTORY | INVENTORY | |||||||
The components of inventory follow: | ||||||||
March 31, | December 31, | |||||||
2015 | 2014 | |||||||
Raw materials | $ | 1,088 | $ | 924 | ||||
Work-in-process | 295 | 422 | ||||||
Finished goods | 1,161 | 1,201 | ||||||
Inventory at FIFO | 2,544 | 2,547 | ||||||
Excess of FIFO over LIFO cost | (120 | ) | (119 | ) | ||||
Total inventory | $ | 2,424 | $ | 2,428 | ||||
Business_Segment_Information
Business Segment Information | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
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. Operating profit includes the operating profit from intersegment sales. For additional information regarding Eaton’s business segments, see Note 14 to the Consolidated Financial Statements contained in the 2014 Form 10-K. | ||||||||
Three months ended | ||||||||
31-Mar | ||||||||
2015 | 2014 | |||||||
Net sales | ||||||||
Electrical Products | $ | 1,691 | $ | 1,726 | ||||
Electrical Systems and Services | 1,448 | 1,524 | ||||||
Hydraulics | 665 | 782 | ||||||
Aerospace | 464 | 464 | ||||||
Vehicle | 955 | 996 | ||||||
Total net sales | $ | 5,223 | $ | 5,492 | ||||
Segment operating profit | ||||||||
Electrical Products | $ | 260 | $ | 250 | ||||
Electrical Systems and Services | 186 | 169 | ||||||
Hydraulics | 66 | 108 | ||||||
Aerospace | 77 | 62 | ||||||
Vehicle | 164 | 151 | ||||||
Total segment operating profit | 753 | 740 | ||||||
Corporate | ||||||||
Amortization of intangible assets | (102 | ) | (110 | ) | ||||
Interest expense - net | (57 | ) | (62 | ) | ||||
Pension and other postretirement benefits expense | (28 | ) | (51 | ) | ||||
Other corporate expense - net | (61 | ) | (64 | ) | ||||
Income before income taxes | 505 | 453 | ||||||
Income tax expense | 38 | 12 | ||||||
Net income | 467 | 441 | ||||||
Less net income for noncontrolling interests | (1 | ) | (2 | ) | ||||
Net income attributable to Eaton ordinary shareholders | $ | 466 | $ | 439 | ||||
Condensed_Consolidating_Financ
Condensed Consolidating Financial Information (Notes) | 3 Months Ended | |||||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||||||||||||||||||
CONDENSED CONSOLIDATING FINANCIAL STATEMENTS | CONDENSED CONSOLIDATING FINANCIAL STATEMENTS | |||||||||||||||||||||||
On November 20, 2012, Eaton Corporation issued senior notes totaling $4,900 to finance part of the cash portion of the acquisition of Cooper. On November 14, 2013, the senior notes were exchanged for senior notes registered under the Securities Act of 1933 (the Senior Notes). Eaton and certain other of Eaton's 100% owned direct and indirect subsidiaries (the Guarantors) fully and unconditionally guaranteed (subject, in 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. | ||||||||||||||||||||||||
During the third quarter of 2014, the Company undertook certain steps to restructure ownership of various subsidiaries. The transactions were entirely among wholly-owned subsidiaries under the common control of Eaton. This restructuring has been reflected as of the beginning of the earliest period presented below. | ||||||||||||||||||||||||
CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME | ||||||||||||||||||||||||
FOR THE THREE MONTHS ENDED MARCH 31, 2015 | ||||||||||||||||||||||||
Eaton | Eaton | Guarantors | Other | Consolidating | Total | |||||||||||||||||||
Corporation | Corporation | subsidiaries | adjustments | |||||||||||||||||||||
plc | ||||||||||||||||||||||||
Net sales | $ | — | $ | 1,702 | $ | 1,696 | $ | 3,116 | $ | (1,291 | ) | $ | 5,223 | |||||||||||
Cost of products sold | — | 1,310 | 1,295 | 2,277 | (1,289 | ) | 3,593 | |||||||||||||||||
Selling and administrative expense | 2 | 377 | 176 | 360 | — | 915 | ||||||||||||||||||
Research and development expense | — | 71 | 45 | 42 | — | 158 | ||||||||||||||||||
Interest expense (income) - net | — | 54 | 6 | (5 | ) | 2 | 57 | |||||||||||||||||
Other (income) loss - net | — | (5 | ) | (1 | ) | 1 | — | (5 | ) | |||||||||||||||
Equity in earnings of | (545 | ) | (211 | ) | (713 | ) | (129 | ) | 1,598 | — | ||||||||||||||
subsidiaries, net of tax | ||||||||||||||||||||||||
Intercompany expense (income) - net | 77 | (41 | ) | 271 | (307 | ) | — | — | ||||||||||||||||
Income before income taxes | 466 | 147 | 617 | 877 | (1,602 | ) | 505 | |||||||||||||||||
Income tax (benefit) expense | — | (22 | ) | 21 | 41 | (2 | ) | 38 | ||||||||||||||||
Net income | 466 | 169 | 596 | 836 | (1,600 | ) | 467 | |||||||||||||||||
Less net income for | — | — | — | (1 | ) | — | (1 | ) | ||||||||||||||||
noncontrolling interests | ||||||||||||||||||||||||
Net income attributable to | $ | 466 | $ | 169 | $ | 596 | $ | 835 | $ | (1,600 | ) | $ | 466 | |||||||||||
Eaton ordinary shareholders | ||||||||||||||||||||||||
Other comprehensive (loss) income | $ | (634 | ) | $ | 46 | $ | (620 | ) | $ | (746 | ) | $ | 1,320 | $ | (634 | ) | ||||||||
Total comprehensive (loss) income attributable to Eaton | $ | (168 | ) | $ | 215 | $ | (24 | ) | $ | 89 | $ | (280 | ) | $ | (168 | ) | ||||||||
ordinary shareholders | ||||||||||||||||||||||||
CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME | ||||||||||||||||||||||||
FOR THE THREE MONTHS ENDED MARCH 31, 2014 | ||||||||||||||||||||||||
Eaton Corporation plc | Eaton | Guarantors | Other | Consolidating | Total | |||||||||||||||||||
Corporation | subsidiaries | adjustments | ||||||||||||||||||||||
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 | ) | 7 | (491 | ) | 45 | 908 | — | ||||||||||||||||
subsidiaries, net of tax | ||||||||||||||||||||||||
Intercompany expense (income) - net | 28 | (70 | ) | 132 | (90 | ) | — | — | ||||||||||||||||
Income (loss) before income taxes | 439 | (97 | ) | 522 | 512 | (923 | ) | 453 | ||||||||||||||||
Income tax (benefit) expense | — | (14 | ) | (7 | ) | 38 | (5 | ) | 12 | |||||||||||||||
Net income (loss) | 439 | (83 | ) | 529 | 474 | (918 | ) | 441 | ||||||||||||||||
Less net income for | — | — | — | (2 | ) | — | (2 | ) | ||||||||||||||||
noncontrolling interests | ||||||||||||||||||||||||
Net income (loss) attributable to | $ | 439 | $ | (83 | ) | $ | 529 | $ | 472 | $ | (918 | ) | $ | 439 | ||||||||||
Eaton ordinary shareholders | ||||||||||||||||||||||||
Other comprehensive income (loss) | $ | 3 | $ | 30 | $ | 25 | $ | (46 | ) | $ | (9 | ) | $ | 3 | ||||||||||
Total comprehensive income (loss) attributable to Eaton | $ | 442 | $ | (53 | ) | $ | 554 | $ | 426 | $ | (927 | ) | $ | 442 | ||||||||||
ordinary shareholders | ||||||||||||||||||||||||
CONDENSED CONSOLIDATING BALANCE SHEETS | ||||||||||||||||||||||||
31-Mar-15 | ||||||||||||||||||||||||
Eaton | Eaton | Guarantors | Other | Consolidating | Total | |||||||||||||||||||
Corporation | Corporation | subsidiaries | adjustments | |||||||||||||||||||||
plc | ||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||
Current assets | ||||||||||||||||||||||||
Cash | $ | 7 | $ | 36 | $ | 257 | $ | 363 | $ | — | $ | 663 | ||||||||||||
Short-term investments | — | — | 1 | 138 | — | 139 | ||||||||||||||||||
Accounts receivable - net | — | 557 | 1,013 | 2,163 | — | 3,733 | ||||||||||||||||||
Intercompany accounts | 4 | 557 | 3,835 | 3,390 | (7,786 | ) | — | |||||||||||||||||
receivable | ||||||||||||||||||||||||
Inventory | — | 384 | 668 | 1,425 | (53 | ) | 2,424 | |||||||||||||||||
Deferred income taxes | — | 355 | 134 | 87 | — | 576 | ||||||||||||||||||
Prepaid expenses and | — | 122 | 41 | 248 | (6 | ) | 405 | |||||||||||||||||
other current assets | ||||||||||||||||||||||||
Total current assets | 11 | 2,011 | 5,949 | 7,814 | (7,845 | ) | 7,940 | |||||||||||||||||
Property, plant and | — | 966 | 747 | 1,921 | — | 3,634 | ||||||||||||||||||
equipment - net | ||||||||||||||||||||||||
Other noncurrent assets | ||||||||||||||||||||||||
Goodwill | — | 1,355 | 6,256 | 5,937 | — | 13,548 | ||||||||||||||||||
Other intangible assets | — | 192 | 3,764 | 2,361 | — | 6,317 | ||||||||||||||||||
Deferred income taxes | — | 892 | 2 | 145 | (819 | ) | 220 | |||||||||||||||||
Investment in subsidiaries | 26,508 | 12,410 | 57,827 | 9,184 | (105,929 | ) | — | |||||||||||||||||
Intercompany loans receivable | — | 7,766 | 2,112 | 41,301 | (51,179 | ) | — | |||||||||||||||||
Other assets | — | 583 | 132 | 322 | — | 1,037 | ||||||||||||||||||
Total assets | $ | 26,519 | $ | 26,175 | $ | 76,789 | $ | 68,985 | $ | (165,772 | ) | $ | 32,696 | |||||||||||
Liabilities and | ||||||||||||||||||||||||
shareholders’ equity | ||||||||||||||||||||||||
Current liabilities | ||||||||||||||||||||||||
Short-term debt | $ | — | $ | 250 | $ | — | $ | 17 | $ | — | $ | 267 | ||||||||||||
Current portion of | — | 701 | 542 | 1 | — | 1,244 | ||||||||||||||||||
long-term debt | ||||||||||||||||||||||||
Accounts payable | — | 493 | 343 | 1,133 | — | 1,969 | ||||||||||||||||||
Intercompany accounts payable | 59 | 4,022 | 2,706 | 999 | (7,786 | ) | — | |||||||||||||||||
Accrued compensation | — | 32 | 44 | 206 | — | 282 | ||||||||||||||||||
Other current liabilities | 7 | 712 | 302 | 907 | (24 | ) | 1,904 | |||||||||||||||||
Total current liabilities | 66 | 6,210 | 3,937 | 3,263 | (7,810 | ) | 5,666 | |||||||||||||||||
Noncurrent liabilities | ||||||||||||||||||||||||
Long-term debt | — | 7,122 | 687 | 18 | 2 | 7,829 | ||||||||||||||||||
Pension liabilities | — | 586 | 138 | 806 | — | 1,530 | ||||||||||||||||||
Other postretirement | — | 280 | 135 | 91 | — | 506 | ||||||||||||||||||
benefits liabilities | ||||||||||||||||||||||||
Deferred income taxes | — | 14 | 1,165 | 521 | (819 | ) | 881 | |||||||||||||||||
Intercompany loans payable | 11,243 | 2,768 | 36,310 | 858 | (51,179 | ) | — | |||||||||||||||||
Other noncurrent liabilities | — | 420 | 181 | 419 | — | 1,020 | ||||||||||||||||||
Total noncurrent liabilities | 11,243 | 11,190 | 38,616 | 2,713 | (51,996 | ) | 11,766 | |||||||||||||||||
Shareholders’ equity | ||||||||||||||||||||||||
Eaton shareholders' equity | 15,210 | 8,775 | 34,236 | 62,963 | (105,974 | ) | 15,210 | |||||||||||||||||
Noncontrolling interests | — | — | — | 46 | 8 | 54 | ||||||||||||||||||
Total equity | 15,210 | 8,775 | 34,236 | 63,009 | (105,966 | ) | 15,264 | |||||||||||||||||
Total liabilities and equity | $ | 26,519 | $ | 26,175 | $ | 76,789 | $ | 68,985 | $ | (165,772 | ) | $ | 32,696 | |||||||||||
CONDENSED CONSOLIDATING BALANCE SHEETS | ||||||||||||||||||||||||
31-Dec-14 | ||||||||||||||||||||||||
Eaton | Eaton | Guarantors | Other | Consolidating | Total | |||||||||||||||||||
Corporation | Corporation | subsidiaries | adjustments | |||||||||||||||||||||
plc | ||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||
Current assets | ||||||||||||||||||||||||
Cash | $ | 1 | $ | 173 | $ | 13 | $ | 594 | $ | — | $ | 781 | ||||||||||||
Short-term investments | — | — | 1 | 244 | — | 245 | ||||||||||||||||||
Accounts receivable - net | — | 500 | 955 | 2,212 | — | 3,667 | ||||||||||||||||||
Intercompany accounts | 2 | 759 | 3,820 | 4,101 | (8,682 | ) | — | |||||||||||||||||
receivable | ||||||||||||||||||||||||
Inventory | — | 397 | 637 | 1,445 | (51 | ) | 2,428 | |||||||||||||||||
Deferred income taxes | — | 368 | 132 | 93 | — | 593 | ||||||||||||||||||
Prepaid expenses and | — | 96 | 39 | 247 | 4 | 386 | ||||||||||||||||||
other current assets | ||||||||||||||||||||||||
Total current assets | 3 | 2,293 | 5,597 | 8,936 | (8,729 | ) | 8,100 | |||||||||||||||||
Property, plant and | — | 972 | 756 | 2,022 | — | 3,750 | ||||||||||||||||||
equipment - net | ||||||||||||||||||||||||
Other noncurrent assets | ||||||||||||||||||||||||
Goodwill | — | 1,355 | 6,256 | 6,282 | — | 13,893 | ||||||||||||||||||
Other intangible assets | — | 196 | 3,811 | 2,549 | — | 6,556 | ||||||||||||||||||
Deferred income taxes | — | 889 | 10 | 137 | (808 | ) | 228 | |||||||||||||||||
Investment in subsidiaries | 26,612 | 12,179 | 58,687 | 9,145 | (106,623 | ) | — | |||||||||||||||||
Intercompany loans receivable | — | 7,542 | 2,249 | 40,635 | (50,426 | ) | — | |||||||||||||||||
Other assets | — | 533 | 141 | 328 | — | 1,002 | ||||||||||||||||||
Total assets | $ | 26,615 | $ | 25,959 | $ | 77,507 | $ | 70,034 | $ | (166,586 | ) | $ | 33,529 | |||||||||||
Liabilities and | ||||||||||||||||||||||||
shareholders’ equity | ||||||||||||||||||||||||
Current liabilities | ||||||||||||||||||||||||
Short-term debt | $ | — | $ | — | $ | — | $ | 2 | $ | — | $ | 2 | ||||||||||||
Current portion of | — | 702 | 304 | 2 | — | 1,008 | ||||||||||||||||||
long-term debt | ||||||||||||||||||||||||
Accounts payable | — | 475 | 340 | 1,125 | — | 1,940 | ||||||||||||||||||
Intercompany accounts payable | 117 | 4,125 | 3,449 | 991 | (8,682 | ) | — | |||||||||||||||||
Accrued compensation | — | 112 | 59 | 249 | — | 420 | ||||||||||||||||||
Other current liabilities | 1 | 674 | 340 | 984 | (14 | ) | 1,985 | |||||||||||||||||
Total current liabilities | 118 | 6,088 | 4,492 | 3,353 | (8,696 | ) | 5,355 | |||||||||||||||||
Noncurrent liabilities | ||||||||||||||||||||||||
Long-term debt | — | 7,079 | 932 | 13 | — | 8,024 | ||||||||||||||||||
Pension liabilities | — | 726 | 183 | 903 | — | 1,812 | ||||||||||||||||||
Other postretirement | — | 283 | 136 | 94 | — | 513 | ||||||||||||||||||
benefits liabilities | ||||||||||||||||||||||||
Deferred income taxes | — | — | 1,160 | 549 | (808 | ) | 901 | |||||||||||||||||
Intercompany loans payable | 10,711 | 2,723 | 36,162 | 830 | (50,426 | ) | — | |||||||||||||||||
Other noncurrent liabilities | — | 457 | 183 | 445 | — | 1,085 | ||||||||||||||||||
Total noncurrent liabilities | 10,711 | 11,268 | 38,756 | 2,834 | (51,234 | ) | 12,335 | |||||||||||||||||
Shareholders’ equity | ||||||||||||||||||||||||
Eaton shareholders' equity | 15,786 | 8,603 | 34,259 | 63,802 | (106,664 | ) | 15,786 | |||||||||||||||||
Noncontrolling interests | — | — | — | 45 | 8 | 53 | ||||||||||||||||||
Total equity | 15,786 | 8,603 | 34,259 | 63,847 | (106,656 | ) | 15,839 | |||||||||||||||||
Total liabilities and equity | $ | 26,615 | $ | 25,959 | $ | 77,507 | $ | 70,034 | $ | (166,586 | ) | $ | 33,529 | |||||||||||
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS | ||||||||||||||||||||||||
FOR THE THREE MONTHS ENDED MARCH 31, 2015 | ||||||||||||||||||||||||
Eaton | Eaton | Guarantors | Other | Consolidating | Total | |||||||||||||||||||
Corporation | Corporation | subsidiaries | adjustments | |||||||||||||||||||||
plc | ||||||||||||||||||||||||
Net cash (used in) provided by | $ | (82 | ) | $ | (187 | ) | $ | 19 | $ | 327 | $ | — | $ | 77 | ||||||||||
operating activities | ||||||||||||||||||||||||
Investing activities | ||||||||||||||||||||||||
Cash paid for acquisitions of | — | — | — | (38 | ) | — | (38 | ) | ||||||||||||||||
businesses, net of cash acquired | ||||||||||||||||||||||||
Capital expenditures for property, | — | (21 | ) | (26 | ) | (58 | ) | — | (105 | ) | ||||||||||||||
plant and equipment | ||||||||||||||||||||||||
Sales of short-term investments - net | — | — | — | 99 | — | 99 | ||||||||||||||||||
Loans to affiliates | — | (154 | ) | — | (3,482 | ) | 3,636 | — | ||||||||||||||||
Repayments of loans from affiliates | — | — | 11 | 2,850 | (2,861 | ) | — | |||||||||||||||||
Other - net | — | (20 | ) | 19 | (8 | ) | — | (9 | ) | |||||||||||||||
Net cash (used in) provided by | — | (195 | ) | 4 | (637 | ) | 775 | (53 | ) | |||||||||||||||
investing activities | ||||||||||||||||||||||||
Financing activities | ||||||||||||||||||||||||
Proceeds from borrowings | — | 250 | — | 16 | — | 266 | ||||||||||||||||||
Payments on borrowings | — | (2 | ) | — | (1 | ) | — | (3 | ) | |||||||||||||||
Proceeds from borrowings from | 500 | 2,982 | 153 | 1 | (3,636 | ) | — | |||||||||||||||||
affiliates | ||||||||||||||||||||||||
Payments on borrowings from | (24 | ) | (2,826 | ) | — | (11 | ) | 2,861 | — | |||||||||||||||
affiliates | ||||||||||||||||||||||||
Other intercompany | — | (159 | ) | 68 | 91 | — | — | |||||||||||||||||
financing activities | ||||||||||||||||||||||||
Cash dividends paid | (251 | ) | — | — | — | — | (251 | ) | ||||||||||||||||
Exercise of employee stock options | 33 | — | — | — | — | 33 | ||||||||||||||||||
Repurchase of shares | (170 | ) | — | — | — | — | (170 | ) | ||||||||||||||||
Other - net | — | — | — | (2 | ) | — | (2 | ) | ||||||||||||||||
Net cash provided by (used in) | 88 | 245 | 221 | 94 | (775 | ) | (127 | ) | ||||||||||||||||
financing activities | ||||||||||||||||||||||||
Effect of currency on cash | — | — | — | (15 | ) | — | (15 | ) | ||||||||||||||||
Total increase (decrease) in cash | 6 | (137 | ) | 244 | (231 | ) | — | (118 | ) | |||||||||||||||
Cash at the beginning of the period | 1 | 173 | 13 | 594 | — | 781 | ||||||||||||||||||
Cash at the end of the period | $ | 7 | $ | 36 | $ | 257 | $ | 363 | $ | — | $ | 663 | ||||||||||||
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 (used in) provided by | $ | (6 | ) | $ | (440 | ) | $ | 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 provided by (used in) | 11 | 309 | (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 | ||||||||||||
Basis_of_Presentation_Basis_of
Basis of Presentation Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business Description and Basis of Presentation [Text Block] | 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 United States generally accepted accounting principles (US GAAP) 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 2014 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. | |
Reclassifications [Policy Text Block] | Certain prior year amounts have been reclassified to conform to the current year presentation. |
Recently Issued Accounting Pronouncements [Policy Text Block] | Recently Issued Accounting Pronouncements |
In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers (ASU 2014-09). This accounting standard supersedes all existing US GAAP revenue recognition guidance. Under ASU 2014-09, a company will recognize revenue when it transfers the control of promised goods or services to customers in an amount that reflects the consideration which the company expects to collect in exchange for those goods or services. ASU 2014-09 will require additional disclosures in the notes to the consolidated financial statements and is effective for annual and interim reporting periods beginning after December 15, 2016. In April 2015, the FASB proposed to defer the effective date of the new standard for one year. If the proposal is approved, then early adoption as of the original effective date would be permitted. Eaton is evaluating the impact of ASU 2014-09 and an estimate of the impact to the consolidated financial statements cannot be made at this time. |
Acquisition_Integration_Charge1
Acquisition Integration Charges (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Acquisitions Integration Charges [Abstract] | ||||||||
Acquisition integration charges [Table Text Block] | A summary of these charges follows: | |||||||
Three months ended | ||||||||
31-Mar | ||||||||
2015 | 2014 | |||||||
Acquisition integration charges | ||||||||
Electrical Products | $ | 6 | $ | 29 | ||||
Electrical Systems and Services | 3 | 26 | ||||||
Hydraulics | 1 | 4 | ||||||
Total business segments | 10 | 59 | ||||||
Corporate | 1 | 7 | ||||||
Total acquisition integration charges before income taxes | $ | 11 | $ | 66 | ||||
Total after income taxes | $ | 7 | $ | 44 | ||||
Per ordinary share - diluted | $ | 0.02 | $ | 0.09 | ||||
Goodwill_Tables
Goodwill (Tables) | 3 Months Ended | ||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||
Schedule of Goodwill | A summary of goodwill follows: | ||||||||||||||||||||||||
Electrical Products | Electrical Systems and Services | Hydraulics | Aerospace | Vehicle | Total | ||||||||||||||||||||
31-Dec-14 | $ | 6,940 | $ | 4,314 | $ | 1,327 | $ | 962 | $ | 350 | $ | 13,893 | |||||||||||||
Additions | — | 22 | — | — | — | 22 | |||||||||||||||||||
Translation adjustments | (206 | ) | (98 | ) | (51 | ) | (6 | ) | (6 | ) | (367 | ) | |||||||||||||
31-Mar-15 | $ | 6,734 | $ | 4,238 | $ | 1,276 | $ | 956 | $ | 344 | $ | 13,548 | |||||||||||||
Retirement_Benefits_Plans_Tabl
Retirement Benefits Plans (Tables) | 3 Months Ended | |||||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
2015 | 2014 | 2015 | 2014 | 2015 | 2014 | |||||||||||||||||||
Service cost | $ | 31 | $ | 29 | $ | 18 | $ | 16 | $ | 2 | $ | 4 | ||||||||||||
Interest cost | 39 | 40 | 18 | 22 | 6 | 9 | ||||||||||||||||||
Expected return on plan assets | (66 | ) | (61 | ) | (25 | ) | (25 | ) | (1 | ) | (1 | ) | ||||||||||||
Amortization | 30 | 23 | 10 | 7 | — | 2 | ||||||||||||||||||
34 | 31 | 21 | 20 | 7 | 14 | |||||||||||||||||||
Settlement loss | 14 | 34 | — | — | — | — | ||||||||||||||||||
Total expense | $ | 48 | $ | 65 | $ | 21 | $ | 20 | $ | 7 | $ | 14 | ||||||||||||
Equity_Tables
Equity (Tables) | 3 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
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, 2014 | $ | 15,786 | $ | 53 | $ | 15,839 | ||||||||||
Net income | 466 | 1 | 467 | |||||||||||||
Other comprehensive loss | (634 | ) | — | (634 | ) | |||||||||||
Cash dividends paid and accrued | (257 | ) | — | (257 | ) | |||||||||||
Issuance of shares under equity-based compensation plans - net | 19 | — | 19 | |||||||||||||
Repurchase of shares | (170 | ) | — | (170 | ) | |||||||||||
Balance at March 31, 2015 | $ | 15,210 | $ | 54 | $ | 15,264 | ||||||||||
Schedule of Accumulated Other Comprehensive Loss [Table Text Block] | The changes in Accumulated other comprehensive loss follow: | |||||||||||||||
Currency translation and related hedging instruments | Pensions and other postretirement benefits | Cash flow | Total | |||||||||||||
hedges | ||||||||||||||||
Balance at December 31, 2014 | $ | (1,414 | ) | $ | (1,485 | ) | $ | — | $ | (2,899 | ) | |||||
Other comprehensive (loss) income | (720 | ) | 51 | 1 | (668 | ) | ||||||||||
before reclassifications | ||||||||||||||||
Amounts reclassified from Accumulated other | — | 35 | (1 | ) | 34 | |||||||||||
comprehensive loss | ||||||||||||||||
Net current-period Other comprehensive | (720 | ) | 86 | — | (634 | ) | ||||||||||
(loss) income | ||||||||||||||||
Balance at March 31, 2015 | $ | (2,134 | ) | $ | (1,399 | ) | $ | — | $ | (3,533 | ) | |||||
Reclassification out of accumulated other comprehensive loss [Table Text Block] | The reclassifications out of Accumulated other comprehensive loss follow: | |||||||||||||||
Three months ended March 31, 2015 | Consolidated statements | |||||||||||||||
of income classification | ||||||||||||||||
Amortization of pensions and other postretirement benefits items | ||||||||||||||||
Actuarial loss and prior service cost | $ | (54 | ) | 1 | ||||||||||||
Tax benefit | 19 | |||||||||||||||
Total, net of tax | (35 | ) | ||||||||||||||
Gains and (losses) 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 | $ | (34 | ) | |||||||||||||
Calculation of net income per ordinary share attributable to shareholders | A summary of the calculation of net income per ordinary share attributable to shareholders follows: | |||||||||||||||
Three months ended | ||||||||||||||||
31-Mar | ||||||||||||||||
(Shares in millions) | 2015 | 2014 | ||||||||||||||
Net income attributable to Eaton ordinary shareholders | $ | 466 | $ | 439 | ||||||||||||
Weighted-average number of ordinary shares outstanding - diluted | 470 | 478.8 | ||||||||||||||
Less dilutive effect of equity-based compensation | 2.1 | 3 | ||||||||||||||
Weighted-average number of ordinary shares outstanding - basic | 467.9 | 475.8 | ||||||||||||||
Net income per ordinary share | ||||||||||||||||
Diluted | $ | 0.99 | $ | 0.92 | ||||||||||||
Basic | 1 | 0.92 | ||||||||||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 3 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
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 | Level 1 | Level 2 | Level 3 | |||||||||||||
31-Mar-15 | ||||||||||||||||
Cash | $ | 663 | $ | 663 | $ | — | $ | — | ||||||||
Short-term investments | 139 | 139 | — | — | ||||||||||||
Net derivative contracts | 129 | — | 129 | — | ||||||||||||
Long-term debt converted to floating interest rates by | (122 | ) | — | (122 | ) | — | ||||||||||
interest rate swaps - net | ||||||||||||||||
December 31, 2014 | ||||||||||||||||
Cash | $ | 781 | $ | 781 | $ | — | $ | — | ||||||||
Short-term investments | 245 | 245 | — | — | ||||||||||||
Net derivative contracts | 70 | — | 70 | — | ||||||||||||
Long-term debt converted to floating interest rates by | (74 | ) | — | (74 | ) | — | ||||||||||
interest rate swaps - net |
Derivative_Financial_Instrumen1
Derivative Financial Instruments and Hedging Activities (Tables) | 3 Months Ended | |||||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||||||||
Derivative financial instruments recognized in the Condensed 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 | noncurrent | current | noncurrent | hedge | |||||||||||||||||||
assets | assets | liabilities | liabilities | |||||||||||||||||||||
31-Mar-15 | ||||||||||||||||||||||||
Derivatives designated as hedges | ||||||||||||||||||||||||
Fixed-to-floating interest rate swaps | $ | 3,440 | $ | — | $ | 122 | $ | — | $ | — | Fair value | 2 to 20 years | ||||||||||||
Currency exchange contracts | 412 | 16 | — | 8 | 8 | Cash flow | 1 to 36 months | |||||||||||||||||
Commodity contracts | 1 | — | — | — | — | Cash flow | 1 to 12 months | |||||||||||||||||
Total | $ | 16 | $ | 122 | $ | 8 | $ | 8 | ||||||||||||||||
Derivatives not designated as | ||||||||||||||||||||||||
hedges | ||||||||||||||||||||||||
Currency exchange contracts | $ | 4,313 | $ | 52 | $ | 45 | 1 to 12 months | |||||||||||||||||
Total | $ | 52 | $ | 45 | ||||||||||||||||||||
31-Dec-14 | ||||||||||||||||||||||||
Derivatives designated as hedges | ||||||||||||||||||||||||
Fixed-to-floating interest rate swaps | $ | 3,440 | $ | — | $ | 84 | $ | — | $ | 10 | Fair value | 2 to 19 years | ||||||||||||
Currency exchange contracts | 432 | 8 | 1 | 5 | 3 | Cash flow | 1 to 36 months | |||||||||||||||||
Commodity contracts | 1 | — | — | — | — | Cash flow | 1 to 12 months | |||||||||||||||||
Total | $ | 8 | $ | 85 | $ | 5 | $ | 13 | ||||||||||||||||
Derivatives not designated as | ||||||||||||||||||||||||
hedges | ||||||||||||||||||||||||
Currency exchange contracts | $ | 4,447 | $ | 47 | $ | 52 | 1 to 12 months | |||||||||||||||||
Total | $ | 47 | $ | 52 | ||||||||||||||||||||
Amounts Recognized in Accumulated Other Comprehensive Loss [Table Text Block] | Amounts recognized in Accumulated other comprehensive loss follow: | |||||||||||||||||||||||
Location of gain | ||||||||||||||||||||||||
Gain recognized in | reclassified from | Gain reclassified | ||||||||||||||||||||||
other comprehensive | Accumulated other | from Accumulated other | ||||||||||||||||||||||
(loss) income | comprehensive loss | comprehensive loss | ||||||||||||||||||||||
Three months ended | Three months ended | |||||||||||||||||||||||
31-Mar | 31-Mar | |||||||||||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||||||||||
Derivatives designated as cash | ||||||||||||||||||||||||
flow hedges | ||||||||||||||||||||||||
Currency exchange contracts | $ | 2 | $ | 2 | Cost of products sold | $ | 2 | $ | 2 | |||||||||||||||
Amounts recognized in net income | Amounts recognized in net income follow: | |||||||||||||||||||||||
Three months ended | ||||||||||||||||||||||||
31-Mar | ||||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||||
Derivatives designated as fair value hedges | ||||||||||||||||||||||||
Fixed-to-floating interest rate swaps | $ | 48 | $ | 29 | ||||||||||||||||||||
Related long-term debt converted to floating interest | (48 | ) | (29 | ) | ||||||||||||||||||||
rates by interest rate swaps | ||||||||||||||||||||||||
$ | — | $ | — | |||||||||||||||||||||
Inventory_Tables
Inventory (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Inventory Disclosure [Abstract] | ||||||||
Components of inventory | The components of inventory follow: | |||||||
March 31, | December 31, | |||||||
2015 | 2014 | |||||||
Raw materials | $ | 1,088 | $ | 924 | ||||
Work-in-process | 295 | 422 | ||||||
Finished goods | 1,161 | 1,201 | ||||||
Inventory at FIFO | 2,544 | 2,547 | ||||||
Excess of FIFO over LIFO cost | (120 | ) | (119 | ) | ||||
Total inventory | $ | 2,424 | $ | 2,428 | ||||
Business_Segment_Information_T
Business Segment Information (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Segment Reporting [Abstract] | ||||||||
Business Segment Information | ||||||||
Three months ended | ||||||||
31-Mar | ||||||||
2015 | 2014 | |||||||
Net sales | ||||||||
Electrical Products | $ | 1,691 | $ | 1,726 | ||||
Electrical Systems and Services | 1,448 | 1,524 | ||||||
Hydraulics | 665 | 782 | ||||||
Aerospace | 464 | 464 | ||||||
Vehicle | 955 | 996 | ||||||
Total net sales | $ | 5,223 | $ | 5,492 | ||||
Segment operating profit | ||||||||
Electrical Products | $ | 260 | $ | 250 | ||||
Electrical Systems and Services | 186 | 169 | ||||||
Hydraulics | 66 | 108 | ||||||
Aerospace | 77 | 62 | ||||||
Vehicle | 164 | 151 | ||||||
Total segment operating profit | 753 | 740 | ||||||
Corporate | ||||||||
Amortization of intangible assets | (102 | ) | (110 | ) | ||||
Interest expense - net | (57 | ) | (62 | ) | ||||
Pension and other postretirement benefits expense | (28 | ) | (51 | ) | ||||
Other corporate expense - net | (61 | ) | (64 | ) | ||||
Income before income taxes | 505 | 453 | ||||||
Income tax expense | 38 | 12 | ||||||
Net income | 467 | 441 | ||||||
Less net income for noncontrolling interests | (1 | ) | (2 | ) | ||||
Net income attributable to Eaton ordinary shareholders | $ | 466 | $ | 439 | ||||
Condensed_Consolidating_Financ1
Condensed Consolidating Financial Information (Tables) | 3 Months Ended | |||||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||||
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, 2015 | ||||||||||||||||||||||||
Eaton | Eaton | Guarantors | Other | Consolidating | Total | |||||||||||||||||||
Corporation | Corporation | subsidiaries | adjustments | |||||||||||||||||||||
plc | ||||||||||||||||||||||||
Net sales | $ | — | $ | 1,702 | $ | 1,696 | $ | 3,116 | $ | (1,291 | ) | $ | 5,223 | |||||||||||
Cost of products sold | — | 1,310 | 1,295 | 2,277 | (1,289 | ) | 3,593 | |||||||||||||||||
Selling and administrative expense | 2 | 377 | 176 | 360 | — | 915 | ||||||||||||||||||
Research and development expense | — | 71 | 45 | 42 | — | 158 | ||||||||||||||||||
Interest expense (income) - net | — | 54 | 6 | (5 | ) | 2 | 57 | |||||||||||||||||
Other (income) loss - net | — | (5 | ) | (1 | ) | 1 | — | (5 | ) | |||||||||||||||
Equity in earnings of | (545 | ) | (211 | ) | (713 | ) | (129 | ) | 1,598 | — | ||||||||||||||
subsidiaries, net of tax | ||||||||||||||||||||||||
Intercompany expense (income) - net | 77 | (41 | ) | 271 | (307 | ) | — | — | ||||||||||||||||
Income before income taxes | 466 | 147 | 617 | 877 | (1,602 | ) | 505 | |||||||||||||||||
Income tax (benefit) expense | — | (22 | ) | 21 | 41 | (2 | ) | 38 | ||||||||||||||||
Net income | 466 | 169 | 596 | 836 | (1,600 | ) | 467 | |||||||||||||||||
Less net income for | — | — | — | (1 | ) | — | (1 | ) | ||||||||||||||||
noncontrolling interests | ||||||||||||||||||||||||
Net income attributable to | $ | 466 | $ | 169 | $ | 596 | $ | 835 | $ | (1,600 | ) | $ | 466 | |||||||||||
Eaton ordinary shareholders | ||||||||||||||||||||||||
Other comprehensive (loss) income | $ | (634 | ) | $ | 46 | $ | (620 | ) | $ | (746 | ) | $ | 1,320 | $ | (634 | ) | ||||||||
Total comprehensive (loss) income attributable to Eaton | $ | (168 | ) | $ | 215 | $ | (24 | ) | $ | 89 | $ | (280 | ) | $ | (168 | ) | ||||||||
ordinary shareholders | ||||||||||||||||||||||||
CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME | ||||||||||||||||||||||||
FOR THE THREE MONTHS ENDED MARCH 31, 2014 | ||||||||||||||||||||||||
Eaton Corporation plc | Eaton | Guarantors | Other | Consolidating | Total | |||||||||||||||||||
Corporation | subsidiaries | adjustments | ||||||||||||||||||||||
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 | ) | 7 | (491 | ) | 45 | 908 | — | ||||||||||||||||
subsidiaries, net of tax | ||||||||||||||||||||||||
Intercompany expense (income) - net | 28 | (70 | ) | 132 | (90 | ) | — | — | ||||||||||||||||
Income (loss) before income taxes | 439 | (97 | ) | 522 | 512 | (923 | ) | 453 | ||||||||||||||||
Income tax (benefit) expense | — | (14 | ) | (7 | ) | 38 | (5 | ) | 12 | |||||||||||||||
Net income (loss) | 439 | (83 | ) | 529 | 474 | (918 | ) | 441 | ||||||||||||||||
Less net income for | — | — | — | (2 | ) | — | (2 | ) | ||||||||||||||||
noncontrolling interests | ||||||||||||||||||||||||
Net income (loss) attributable to | $ | 439 | $ | (83 | ) | $ | 529 | $ | 472 | $ | (918 | ) | $ | 439 | ||||||||||
Eaton ordinary shareholders | ||||||||||||||||||||||||
Other comprehensive income (loss) | $ | 3 | $ | 30 | $ | 25 | $ | (46 | ) | $ | (9 | ) | $ | 3 | ||||||||||
Total comprehensive income (loss) attributable to Eaton | $ | 442 | $ | (53 | ) | $ | 554 | $ | 426 | $ | (927 | ) | $ | 442 | ||||||||||
ordinary shareholders | ||||||||||||||||||||||||
CONDENSED CONSOLIDATING BALANCE SHEETS | ||||||||||||||||||||||||
31-Mar-15 | ||||||||||||||||||||||||
Eaton | Eaton | Guarantors | Other | Consolidating | Total | |||||||||||||||||||
Corporation | Corporation | subsidiaries | adjustments | |||||||||||||||||||||
plc | ||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||
Current assets | ||||||||||||||||||||||||
Cash | $ | 7 | $ | 36 | $ | 257 | $ | 363 | $ | — | $ | 663 | ||||||||||||
Short-term investments | — | — | 1 | 138 | — | 139 | ||||||||||||||||||
Accounts receivable - net | — | 557 | 1,013 | 2,163 | — | 3,733 | ||||||||||||||||||
Intercompany accounts | 4 | 557 | 3,835 | 3,390 | (7,786 | ) | — | |||||||||||||||||
receivable | ||||||||||||||||||||||||
Inventory | — | 384 | 668 | 1,425 | (53 | ) | 2,424 | |||||||||||||||||
Deferred income taxes | — | 355 | 134 | 87 | — | 576 | ||||||||||||||||||
Prepaid expenses and | — | 122 | 41 | 248 | (6 | ) | 405 | |||||||||||||||||
other current assets | ||||||||||||||||||||||||
Total current assets | 11 | 2,011 | 5,949 | 7,814 | (7,845 | ) | 7,940 | |||||||||||||||||
Property, plant and | — | 966 | 747 | 1,921 | — | 3,634 | ||||||||||||||||||
equipment - net | ||||||||||||||||||||||||
Other noncurrent assets | ||||||||||||||||||||||||
Goodwill | — | 1,355 | 6,256 | 5,937 | — | 13,548 | ||||||||||||||||||
Other intangible assets | — | 192 | 3,764 | 2,361 | — | 6,317 | ||||||||||||||||||
Deferred income taxes | — | 892 | 2 | 145 | (819 | ) | 220 | |||||||||||||||||
Investment in subsidiaries | 26,508 | 12,410 | 57,827 | 9,184 | (105,929 | ) | — | |||||||||||||||||
Intercompany loans receivable | — | 7,766 | 2,112 | 41,301 | (51,179 | ) | — | |||||||||||||||||
Other assets | — | 583 | 132 | 322 | — | 1,037 | ||||||||||||||||||
Total assets | $ | 26,519 | $ | 26,175 | $ | 76,789 | $ | 68,985 | $ | (165,772 | ) | $ | 32,696 | |||||||||||
Liabilities and | ||||||||||||||||||||||||
shareholders’ equity | ||||||||||||||||||||||||
Current liabilities | ||||||||||||||||||||||||
Short-term debt | $ | — | $ | 250 | $ | — | $ | 17 | $ | — | $ | 267 | ||||||||||||
Current portion of | — | 701 | 542 | 1 | — | 1,244 | ||||||||||||||||||
long-term debt | ||||||||||||||||||||||||
Accounts payable | — | 493 | 343 | 1,133 | — | 1,969 | ||||||||||||||||||
Intercompany accounts payable | 59 | 4,022 | 2,706 | 999 | (7,786 | ) | — | |||||||||||||||||
Accrued compensation | — | 32 | 44 | 206 | — | 282 | ||||||||||||||||||
Other current liabilities | 7 | 712 | 302 | 907 | (24 | ) | 1,904 | |||||||||||||||||
Total current liabilities | 66 | 6,210 | 3,937 | 3,263 | (7,810 | ) | 5,666 | |||||||||||||||||
Noncurrent liabilities | ||||||||||||||||||||||||
Long-term debt | — | 7,122 | 687 | 18 | 2 | 7,829 | ||||||||||||||||||
Pension liabilities | — | 586 | 138 | 806 | — | 1,530 | ||||||||||||||||||
Other postretirement | — | 280 | 135 | 91 | — | 506 | ||||||||||||||||||
benefits liabilities | ||||||||||||||||||||||||
Deferred income taxes | — | 14 | 1,165 | 521 | (819 | ) | 881 | |||||||||||||||||
Intercompany loans payable | 11,243 | 2,768 | 36,310 | 858 | (51,179 | ) | — | |||||||||||||||||
Other noncurrent liabilities | — | 420 | 181 | 419 | — | 1,020 | ||||||||||||||||||
Total noncurrent liabilities | 11,243 | 11,190 | 38,616 | 2,713 | (51,996 | ) | 11,766 | |||||||||||||||||
Shareholders’ equity | ||||||||||||||||||||||||
Eaton shareholders' equity | 15,210 | 8,775 | 34,236 | 62,963 | (105,974 | ) | 15,210 | |||||||||||||||||
Noncontrolling interests | — | — | — | 46 | 8 | 54 | ||||||||||||||||||
Total equity | 15,210 | 8,775 | 34,236 | 63,009 | (105,966 | ) | 15,264 | |||||||||||||||||
Total liabilities and equity | $ | 26,519 | $ | 26,175 | $ | 76,789 | $ | 68,985 | $ | (165,772 | ) | $ | 32,696 | |||||||||||
CONDENSED CONSOLIDATING BALANCE SHEETS | ||||||||||||||||||||||||
31-Dec-14 | ||||||||||||||||||||||||
Eaton | Eaton | Guarantors | Other | Consolidating | Total | |||||||||||||||||||
Corporation | Corporation | subsidiaries | adjustments | |||||||||||||||||||||
plc | ||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||
Current assets | ||||||||||||||||||||||||
Cash | $ | 1 | $ | 173 | $ | 13 | $ | 594 | $ | — | $ | 781 | ||||||||||||
Short-term investments | — | — | 1 | 244 | — | 245 | ||||||||||||||||||
Accounts receivable - net | — | 500 | 955 | 2,212 | — | 3,667 | ||||||||||||||||||
Intercompany accounts | 2 | 759 | 3,820 | 4,101 | (8,682 | ) | — | |||||||||||||||||
receivable | ||||||||||||||||||||||||
Inventory | — | 397 | 637 | 1,445 | (51 | ) | 2,428 | |||||||||||||||||
Deferred income taxes | — | 368 | 132 | 93 | — | 593 | ||||||||||||||||||
Prepaid expenses and | — | 96 | 39 | 247 | 4 | 386 | ||||||||||||||||||
other current assets | ||||||||||||||||||||||||
Total current assets | 3 | 2,293 | 5,597 | 8,936 | (8,729 | ) | 8,100 | |||||||||||||||||
Property, plant and | — | 972 | 756 | 2,022 | — | 3,750 | ||||||||||||||||||
equipment - net | ||||||||||||||||||||||||
Other noncurrent assets | ||||||||||||||||||||||||
Goodwill | — | 1,355 | 6,256 | 6,282 | — | 13,893 | ||||||||||||||||||
Other intangible assets | — | 196 | 3,811 | 2,549 | — | 6,556 | ||||||||||||||||||
Deferred income taxes | — | 889 | 10 | 137 | (808 | ) | 228 | |||||||||||||||||
Investment in subsidiaries | 26,612 | 12,179 | 58,687 | 9,145 | (106,623 | ) | — | |||||||||||||||||
Intercompany loans receivable | — | 7,542 | 2,249 | 40,635 | (50,426 | ) | — | |||||||||||||||||
Other assets | — | 533 | 141 | 328 | — | 1,002 | ||||||||||||||||||
Total assets | $ | 26,615 | $ | 25,959 | $ | 77,507 | $ | 70,034 | $ | (166,586 | ) | $ | 33,529 | |||||||||||
Liabilities and | ||||||||||||||||||||||||
shareholders’ equity | ||||||||||||||||||||||||
Current liabilities | ||||||||||||||||||||||||
Short-term debt | $ | — | $ | — | $ | — | $ | 2 | $ | — | $ | 2 | ||||||||||||
Current portion of | — | 702 | 304 | 2 | — | 1,008 | ||||||||||||||||||
long-term debt | ||||||||||||||||||||||||
Accounts payable | — | 475 | 340 | 1,125 | — | 1,940 | ||||||||||||||||||
Intercompany accounts payable | 117 | 4,125 | 3,449 | 991 | (8,682 | ) | — | |||||||||||||||||
Accrued compensation | — | 112 | 59 | 249 | — | 420 | ||||||||||||||||||
Other current liabilities | 1 | 674 | 340 | 984 | (14 | ) | 1,985 | |||||||||||||||||
Total current liabilities | 118 | 6,088 | 4,492 | 3,353 | (8,696 | ) | 5,355 | |||||||||||||||||
Noncurrent liabilities | ||||||||||||||||||||||||
Long-term debt | — | 7,079 | 932 | 13 | — | 8,024 | ||||||||||||||||||
Pension liabilities | — | 726 | 183 | 903 | — | 1,812 | ||||||||||||||||||
Other postretirement | — | 283 | 136 | 94 | — | 513 | ||||||||||||||||||
benefits liabilities | ||||||||||||||||||||||||
Deferred income taxes | — | — | 1,160 | 549 | (808 | ) | 901 | |||||||||||||||||
Intercompany loans payable | 10,711 | 2,723 | 36,162 | 830 | (50,426 | ) | — | |||||||||||||||||
Other noncurrent liabilities | — | 457 | 183 | 445 | — | 1,085 | ||||||||||||||||||
Total noncurrent liabilities | 10,711 | 11,268 | 38,756 | 2,834 | (51,234 | ) | 12,335 | |||||||||||||||||
Shareholders’ equity | ||||||||||||||||||||||||
Eaton shareholders' equity | 15,786 | 8,603 | 34,259 | 63,802 | (106,664 | ) | 15,786 | |||||||||||||||||
Noncontrolling interests | — | — | — | 45 | 8 | 53 | ||||||||||||||||||
Total equity | 15,786 | 8,603 | 34,259 | 63,847 | (106,656 | ) | 15,839 | |||||||||||||||||
Total liabilities and equity | $ | 26,615 | $ | 25,959 | $ | 77,507 | $ | 70,034 | $ | (166,586 | ) | $ | 33,529 | |||||||||||
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS | ||||||||||||||||||||||||
FOR THE THREE MONTHS ENDED MARCH 31, 2015 | ||||||||||||||||||||||||
Eaton | Eaton | Guarantors | Other | Consolidating | Total | |||||||||||||||||||
Corporation | Corporation | subsidiaries | adjustments | |||||||||||||||||||||
plc | ||||||||||||||||||||||||
Net cash (used in) provided by | $ | (82 | ) | $ | (187 | ) | $ | 19 | $ | 327 | $ | — | $ | 77 | ||||||||||
operating activities | ||||||||||||||||||||||||
Investing activities | ||||||||||||||||||||||||
Cash paid for acquisitions of | — | — | — | (38 | ) | — | (38 | ) | ||||||||||||||||
businesses, net of cash acquired | ||||||||||||||||||||||||
Capital expenditures for property, | — | (21 | ) | (26 | ) | (58 | ) | — | (105 | ) | ||||||||||||||
plant and equipment | ||||||||||||||||||||||||
Sales of short-term investments - net | — | — | — | 99 | — | 99 | ||||||||||||||||||
Loans to affiliates | — | (154 | ) | — | (3,482 | ) | 3,636 | — | ||||||||||||||||
Repayments of loans from affiliates | — | — | 11 | 2,850 | (2,861 | ) | — | |||||||||||||||||
Other - net | — | (20 | ) | 19 | (8 | ) | — | (9 | ) | |||||||||||||||
Net cash (used in) provided by | — | (195 | ) | 4 | (637 | ) | 775 | (53 | ) | |||||||||||||||
investing activities | ||||||||||||||||||||||||
Financing activities | ||||||||||||||||||||||||
Proceeds from borrowings | — | 250 | — | 16 | — | 266 | ||||||||||||||||||
Payments on borrowings | — | (2 | ) | — | (1 | ) | — | (3 | ) | |||||||||||||||
Proceeds from borrowings from | 500 | 2,982 | 153 | 1 | (3,636 | ) | — | |||||||||||||||||
affiliates | ||||||||||||||||||||||||
Payments on borrowings from | (24 | ) | (2,826 | ) | — | (11 | ) | 2,861 | — | |||||||||||||||
affiliates | ||||||||||||||||||||||||
Other intercompany | — | (159 | ) | 68 | 91 | — | — | |||||||||||||||||
financing activities | ||||||||||||||||||||||||
Cash dividends paid | (251 | ) | — | — | — | — | (251 | ) | ||||||||||||||||
Exercise of employee stock options | 33 | — | — | — | — | 33 | ||||||||||||||||||
Repurchase of shares | (170 | ) | — | — | — | — | (170 | ) | ||||||||||||||||
Other - net | — | — | — | (2 | ) | — | (2 | ) | ||||||||||||||||
Net cash provided by (used in) | 88 | 245 | 221 | 94 | (775 | ) | (127 | ) | ||||||||||||||||
financing activities | ||||||||||||||||||||||||
Effect of currency on cash | — | — | — | (15 | ) | — | (15 | ) | ||||||||||||||||
Total increase (decrease) in cash | 6 | (137 | ) | 244 | (231 | ) | — | (118 | ) | |||||||||||||||
Cash at the beginning of the period | 1 | 173 | 13 | 594 | — | 781 | ||||||||||||||||||
Cash at the end of the period | $ | 7 | $ | 36 | $ | 257 | $ | 363 | $ | — | $ | 663 | ||||||||||||
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 (used in) provided by | $ | (6 | ) | $ | (440 | ) | $ | 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 provided by (used in) | 11 | 309 | (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 | ||||||||||||
Acquisition_and_Sale_of_Busine1
Acquisition and Sale of Businesses Sale of Business (Details) (Aerospace [Member], USD $) | 0 Months Ended |
In Millions, unless otherwise specified | 9-May-14 |
Aerospace [Member] | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Sale of Aerospace Power Distribution Management Solutions and Integrated Cockpit Solutions | $270 |
Gain on sale of businesses, pre-tax | $154 |
Acquisition_Integration_Charge2
Acquisition Integration Charges (Details) (USD $) | 3 Months Ended | |
In Millions, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Acquisition integration charges [Line Items] | ||
Acquisition integration charges | $11 | $66 |
Acquisition integration after tax charges | 7 | 44 |
Acquisition integration charges per ordinary share | $0.02 | $0.09 |
Electrical Products [Member] | ||
Acquisition integration charges [Line Items] | ||
Acquisition integration charges | 6 | 29 |
Electrical Systems and Services [Member] | ||
Acquisition integration charges [Line Items] | ||
Acquisition integration charges | 3 | 26 |
Hydraulics [Member] | ||
Acquisition integration charges [Line Items] | ||
Acquisition integration charges | 1 | 4 |
Operating Segments [Member] | ||
Acquisition integration charges [Line Items] | ||
Acquisition integration charges | 10 | 59 |
Corporate [Member] | ||
Acquisition integration charges [Line Items] | ||
Acquisition integration charges | $1 | $7 |
Goodwill_Details
Goodwill (Details) (USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2015 |
Goodwill [Line Items] | |
31-Dec-14 | $13,893 |
Additions | 22 |
Translation adjustments | -367 |
31-Mar-15 | 13,548 |
Electrical Products [Member] | |
Goodwill [Line Items] | |
31-Dec-14 | 6,940 |
Additions | 0 |
Translation adjustments | -206 |
31-Mar-15 | 6,734 |
Electrical Systems and Services [Member] | |
Goodwill [Line Items] | |
31-Dec-14 | 4,314 |
Additions | 22 |
Translation adjustments | -98 |
31-Mar-15 | 4,238 |
Hydraulics [Member] | |
Goodwill [Line Items] | |
31-Dec-14 | 1,327 |
Additions | 0 |
Translation adjustments | -51 |
31-Mar-15 | 1,276 |
Aerospace [Member] | |
Goodwill [Line Items] | |
31-Dec-14 | 962 |
Additions | 0 |
Translation adjustments | -6 |
31-Mar-15 | 956 |
Vehicle [Member] | |
Goodwill [Line Items] | |
31-Dec-14 | 350 |
Additions | 0 |
Translation adjustments | -6 |
31-Mar-15 | $344 |
Retirement_Benefits_Plans_Deta
Retirement Benefits Plans (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
United States pension benefit expense [Member] | ||
Retirement benefits plans expense | ||
Service cost | $31 | $29 |
Interest cost | 39 | 40 |
Expected return on plan assets | -66 | -61 |
Amortization | 30 | 23 |
Total | 34 | 31 |
Settlement loss | 14 | 34 |
Total expense | 48 | 65 |
Non-United States pension benefit expense [Member] | ||
Retirement benefits plans expense | ||
Service cost | 18 | 16 |
Interest cost | 18 | 22 |
Expected return on plan assets | -25 | -25 |
Amortization | 10 | 7 |
Total | 21 | 20 |
Settlement loss | 0 | 0 |
Total expense | 21 | 20 |
Other postretirement benefits expense [Member] | ||
Retirement benefits plans expense | ||
Service cost | 2 | 4 |
Interest cost | 6 | 9 |
Expected return on plan assets | -1 | -1 |
Amortization | 0 | 2 |
Total | 7 | 14 |
Settlement loss | 0 | 0 |
Total expense | $7 | $14 |
Legal_Contingencies_Details
Legal Contingencies (Details) (Raysul [Member]) | 3 Months Ended | |||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2010 | Dec. 31, 2010 |
USD ($) | BRL | USD ($) | BRL | |
Loss Contingencies [Line Items] | ||||
Loss Contingency Accrual | $26 | 85 | ||
Loss Contingency Accrual, Provision | $8 | 25 | $18 | 60 |
Income_Taxes_Details
Income Taxes (Details) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Income Tax Disclosure [Abstract] | ||
Effective tax rate | 8.00% | 3.00% |
Equity_Changes_in_Shareholders
Equity Changes in Shareholders's Equity (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Changes in Shareholders' equity | ||
Balance at December 31, 2014 | $15,839 | |
Net income | 467 | 441 |
Other comprehensive loss | -634 | 3 |
Cash dividends paid and accrued | -257 | |
Issuance of shares under equity-based compensation plans - net | 19 | |
Repurchase of shares | -170 | |
Balance at March 31, 2015 | 15,264 | |
Eaton shareholders' equity [Member] | ||
Changes in Shareholders' equity | ||
Balance at December 31, 2014 | 15,786 | |
Net income | 466 | |
Other comprehensive loss | -634 | |
Cash dividends paid and accrued | -257 | |
Issuance of shares under equity-based compensation plans - net | 19 | |
Repurchase of shares | -170 | |
Balance at March 31, 2015 | 15,210 | |
Noncontrolling interests [Member] | ||
Changes in Shareholders' equity | ||
Balance at December 31, 2014 | 53 | |
Net income | 1 | |
Other comprehensive loss | 0 | |
Cash dividends paid and accrued | 0 | |
Issuance of shares under equity-based compensation plans - net | 0 | |
Repurchase of shares | 0 | |
Balance at March 31, 2015 | 54 | |
2013 Program [Member] | ||
Stock Repurchase Program, Number of Shares Authorized to be Repurchased | 40 | |
Stock Repurchased During Period, Shares | 2.4 | |
Changes in Shareholders' equity | ||
Repurchase of shares | ($170) |
Changes_in_Accumulated_Other_C
Changes in Accumulated Other Comprehensive (Loss) Income (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Amounts reclassified from Accumulated other comprehensive loss | $34 | |
Net current-period Other comprehensive (loss) income | -634 | 3 |
Currency translation and related hedging instruments [Member] | ||
Balance at December 31, 2014 | -1,414 | |
Other comprehensive (loss) income before reclassifications | -720 | |
Amounts reclassified from Accumulated other comprehensive loss | 0 | |
Net current-period Other comprehensive (loss) income | -720 | |
Balance at March 31, 2015 | -2,134 | |
Pensions and other postretirement benefits [Member] | ||
Balance at December 31, 2014 | -1,485 | |
Other comprehensive (loss) income before reclassifications | 51 | |
Amounts reclassified from Accumulated other comprehensive loss | 35 | |
Net current-period Other comprehensive (loss) income | 86 | |
Balance at March 31, 2015 | -1,399 | |
Cash flow hedges [Member] | ||
Balance at December 31, 2014 | 0 | |
Other comprehensive (loss) income before reclassifications | 1 | |
Amounts reclassified from Accumulated other comprehensive loss | -1 | |
Net current-period Other comprehensive (loss) income | 0 | |
Balance at March 31, 2015 | 0 | |
AOCI Attributable to Parent [Member] | ||
Balance at December 31, 2014 | -2,899 | |
Other comprehensive (loss) income before reclassifications | -668 | |
Amounts reclassified from Accumulated other comprehensive loss | 34 | |
Net current-period Other comprehensive (loss) income | -634 | |
Balance at March 31, 2015 | ($3,533) |
Reclassifications_Out_of_Accum
Reclassifications Out of Accumulated Other Comprehensive Loss (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Actuarial loss and prior service cost | ($54) | [1] |
Tax benefit | 19 | |
Total, net of tax | -35 | |
Tax expense | -1 | |
Total, net of tax | 1 | |
Total reclassifications for the period | -34 | |
Cost of products sold [Member] | Currency exchange contracts [Member] | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Currency exchange contracts | $2 | |
[1] | These components of Accumulated other comprehensive loss are included in the computation of net periodic benefit cost. See Note 5 for additional information about pension and other post retirement benefits 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, 2015 | Mar. 31, 2014 |
Calculation of net income per ordinary share attributable to ordinary shareholders | ||
Net income attributable to Eaton ordinary shareholders | $466 | $439 |
Weighted-average number of ordinary shares outstanding - diluted | 470 | 478.8 |
Less dilutive effect of equity-based compensation | 2.1 | 3 |
Weighted-average number of ordinary shares outstanding - basic | 467.9 | 475.8 |
Stock options excluded from calculation of diluted net income per ordinary share | 0.9 | 0.1 |
Net income per ordinary share | ||
Diluted | $0.99 | $0.92 |
Basic | $1 | $0.92 |
Equitybased_Compensation_Equit
Equity-based Compensation Equity-based compensation (Details) (Performance Shares [Member], Maximum [Member]) | 3 Months Ended |
Mar. 31, 2015 | |
Performance Shares [Member] | Maximum [Member] | |
Performance share units [Line Items] | |
Maximum number of ordinary shares to be issued | 911,050 |
Fair_Value_Measurements_Detail
Fair Value Measurements (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||||
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items] | ||||
Cash | $663 | $781 | $784 | $915 |
Short-term investments | 139 | 245 | ||
Net derivative contracts | 129 | 70 | ||
Long-term debt converted to floating interest rates by interest rate swaps - net | -122 | -74 | ||
Level 1 [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items] | ||||
Cash | 663 | 781 | ||
Short-term investments | 139 | 245 | ||
Net derivative contracts | 0 | 0 | ||
Long-term debt converted to floating interest rates by interest rate swaps - net | 0 | 0 | ||
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 | 129 | 70 | ||
Long-term debt converted to floating interest rates by interest rate swaps - net | -122 | -74 | ||
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, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Other Fair Value Measurements [Line Items] | ||
Carrying value of long-term debt and current portion of long-term debt | $9,073 | $9,032 |
Level 2 [Member] | ||
Other Fair Value Measurements [Line Items] | ||
Fair value of long-term debt and current portion of long-term debt | $9,679 | $9,509 |
Derivative_Financial_Instrumen2
Derivative Financial Instruments and Hedging Activities (Details) (USD $) | 3 Months Ended | 12 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 |
Derivatives not designated as hedges | ||
Debt denominated in foreign currency designated as non-derivative net investment hedging instrument | 83 | 84 |
Percentage of intercompany balance sheet exposure | 100.00% | |
Other current assets [Member] | ||
Derivatives designated as hedges | ||
Derivative asset designated as hedging instrument | 16 | 8 |
Derivatives not designated as hedges | ||
Derivative instruments not designated as hedging instruments, asset, at fair value | 52 | 47 |
Other noncurrent assets [Member] | ||
Derivatives designated as hedges | ||
Derivative asset designated as hedging instrument | 122 | 85 |
Other current liabilities [Member] | ||
Derivatives designated as hedges | ||
Derivative liability designated as hedging instrument | 8 | 5 |
Derivatives not designated as hedges | ||
Derivative instruments not designated as hedging instruments, liability, at fair value | 45 | 52 |
Other noncurrent liabilities [Member] | ||
Derivatives designated as hedges | ||
Derivative liability designated as hedging instrument | 8 | 13 |
Currency exchange contracts [Member] | Other current assets [Member] | ||
Derivatives not designated as hedges | ||
Derivative instruments not designated as hedging instruments, asset, at fair value | 52 | 47 |
Currency exchange contracts [Member] | Other current liabilities [Member] | ||
Derivatives not designated as hedges | ||
Derivative instruments not designated as hedging instruments, liability, at fair value | 45 | 52 |
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 | 0 |
Fair Value Hedging [Member] | Fixed-to-floating interest rate swaps [Member] | Other noncurrent assets [Member] | ||
Derivatives designated as hedges | ||
Derivative asset designated as hedging instrument | 122 | 84 |
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 noncurrent liabilities [Member] | ||
Derivatives designated as hedges | ||
Derivative liability designated as hedging instrument | 0 | 10 |
Cash Flow Hedging [Member] | Currency exchange contracts [Member] | Other current assets [Member] | ||
Derivatives designated as hedges | ||
Derivative asset designated as hedging instrument | 16 | 8 |
Cash Flow Hedging [Member] | Currency exchange contracts [Member] | Other noncurrent assets [Member] | ||
Derivatives designated as hedges | ||
Derivative asset designated as hedging instrument | 0 | 1 |
Cash Flow Hedging [Member] | Currency exchange contracts [Member] | Other current liabilities [Member] | ||
Derivatives designated as hedges | ||
Derivative liability designated as hedging instrument | 8 | 5 |
Cash Flow Hedging [Member] | Currency exchange contracts [Member] | Other noncurrent liabilities [Member] | ||
Derivatives designated as hedges | ||
Derivative liability designated as hedging instrument | 8 | 3 |
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 noncurrent 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 noncurrent liabilities [Member] | ||
Derivatives designated as hedges | ||
Derivative liability designated as hedging instrument | 0 | 0 |
Derivatives designated as hedges [Member] | Fair Value Hedging [Member] | Fixed-to-floating interest rate swaps [Member] | ||
Derivatives designated as hedges | ||
Derivative, Notional Amount | 3,440 | 3,440 |
Derivatives designated as hedges [Member] | Cash Flow Hedging [Member] | Currency exchange contracts [Member] | ||
Derivatives designated as hedges | ||
Derivative, Notional Amount | 412 | 432 |
Derivatives designated as hedges [Member] | Cash Flow Hedging [Member] | Commodity contracts [Member] | ||
Derivatives designated as hedges | ||
Derivative, Notional Amount | 1 | 1 |
Derivatives not designated as hedges [Member] | Currency exchange contracts [Member] | ||
Derivatives designated as hedges | ||
Derivative, Notional Amount | 4,313 | 4,447 |
Minimum [Member] | Derivatives designated as hedges [Member] | Fair Value Hedging [Member] | Fixed-to-floating interest rate swaps [Member] | ||
Derivatives designated as hedges | ||
Derivative, Term of Contract | 2 years | 2 years |
Minimum [Member] | Derivatives designated as hedges [Member] | Cash Flow Hedging [Member] | Currency exchange contracts [Member] | ||
Derivatives designated as hedges | ||
Derivative, Term of Contract | 1 month | 1 month |
Minimum [Member] | Derivatives designated as hedges [Member] | Cash Flow Hedging [Member] | Commodity contracts [Member] | ||
Derivatives designated as hedges | ||
Derivative, Term of Contract | 1 month | 1 month |
Minimum [Member] | Derivatives not designated as hedges [Member] | Currency exchange contracts [Member] | ||
Derivatives designated as hedges | ||
Derivative, Term of Contract | 1 month | 1 month |
Maximum [Member] | Derivatives designated as hedges [Member] | Fair Value Hedging [Member] | Fixed-to-floating interest rate swaps [Member] | ||
Derivatives designated as hedges | ||
Derivative, Term of Contract | 20 years | 19 years |
Maximum [Member] | Derivatives designated as hedges [Member] | Cash Flow Hedging [Member] | Currency exchange contracts [Member] | ||
Derivatives designated as hedges | ||
Derivative, Term of Contract | 36 months | 36 months |
Maximum [Member] | Derivatives designated as hedges [Member] | Cash Flow Hedging [Member] | Commodity contracts [Member] | ||
Derivatives designated as hedges | ||
Derivative, Term of Contract | 12 months | 12 months |
Maximum [Member] | Derivatives not designated as hedges [Member] | Currency exchange contracts [Member] | ||
Derivatives designated as hedges | ||
Derivative, Term of Contract | 12 months | 12 months |
Derivative_Financial_Instrumen3
Derivative Financial Instruments and Hedging Activities Amounts Recognized in Net Income (Details) (Interest expense - net [Member], Fair Value Hedging [Member], USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amounts recognized in net income | $0 | $0 |
Fixed-to-floating interest rate swaps [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amounts recognized in net income | 48 | 29 |
Related Long Term Debt Converted To Floating Interest Rates By Interest Rate Swaps [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amounts recognized in net income | ($48) | ($29) |
Inventory_Details
Inventory (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Inventory Disclosure [Abstract] | ||
Raw materials | $1,088 | $924 |
Work-in-process | 295 | 422 |
Finished goods | 1,161 | 1,201 |
Inventory at FIFO | 2,544 | 2,547 |
Excess of FIFO over LIFO cost | -120 | -119 |
Total inventory | $2,424 | $2,428 |
Business_Segment_Information_D
Business Segment Information (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Business Segment Information | ||
Net sales | $5,223 | $5,492 |
Interest expense - net | 57 | 62 |
Pension and other postretirement benefits expense | -76 | -99 |
Other corporate expense - net | -5 | -5 |
Income before income taxes | 505 | 453 |
Income tax expense | 38 | 12 |
Net income | 467 | 441 |
Less net income for noncontrolling interests | -1 | -2 |
Net income attributable to Eaton ordinary shareholders | 466 | 439 |
Electrical Products [Member] | ||
Business Segment Information | ||
Net sales | 1,691 | 1,726 |
Segment operating profit | 260 | 250 |
Electrical Systems and Services [Member] | ||
Business Segment Information | ||
Net sales | 1,448 | 1,524 |
Segment operating profit | 186 | 169 |
Hydraulics [Member] | ||
Business Segment Information | ||
Net sales | 665 | 782 |
Segment operating profit | 66 | 108 |
Aerospace [Member] | ||
Business Segment Information | ||
Net sales | 464 | 464 |
Segment operating profit | 77 | 62 |
Vehicle [Member] | ||
Business Segment Information | ||
Net sales | 955 | 996 |
Segment operating profit | 164 | 151 |
Corporate | ||
Business Segment Information | ||
Amortization of intangible assets | -102 | -110 |
Interest expense - net | -57 | -62 |
Pension and other postretirement benefits expense | -28 | -51 |
Other corporate expense - net | -61 | -64 |
Total business segments | ||
Business Segment Information | ||
Segment operating profit | $753 | $740 |
Condensed_Consolidating_Financ2
Condensed Consolidating Financial Information (Details) (USD $) | Nov. 20, 2012 |
In Millions, unless otherwise specified | |
Condensed Consolidating Financial Information [Abstract] | |
Issuance of senior notes | $4,900 |
Eaton and certain other 100% owned subsidiaries guarantee of Senior Debt | 100.00% |
Condensed_Consolidating_Financ3
Condensed Consolidating Financial Information Consolidating Statements of Comprehensive Income (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Consolidating Statements of Comprehensive Income, Captions [Line Items] | ||
Net sales | $5,223 | $5,492 |
Cost of products sold | 3,593 | 3,858 |
Selling and administrative expense | 915 | 962 |
Research and development expense | 158 | 162 |
Interest expense (income) - net | 57 | 62 |
Other (income) expense - net | -5 | -5 |
Equity in earnings of subsidiaries, net of tax | 0 | 0 |
Intercompany expense (income) - net | 0 | 0 |
Income before income taxes | 505 | 453 |
Income tax (benefit) expense | 38 | 12 |
Net income | 467 | 441 |
Less net income for noncontrolling interests | -1 | -2 |
Net income attributable to Eaton ordinary shareholders | 466 | 439 |
Other comprehensive loss | -634 | 3 |
Total comprehensive (loss) income attributable to Eaton ordinary shareholders | -168 | 442 |
Eaton Corporation plc [Member] | ||
Consolidating Statements of Comprehensive Income, 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 (income) expense - net | 0 | 0 |
Equity in earnings of subsidiaries, net of tax | -545 | -469 |
Intercompany expense (income) - net | 77 | 28 |
Income before income taxes | 466 | 439 |
Income tax (benefit) expense | 0 | 0 |
Net income | 466 | 439 |
Less net income for noncontrolling interests | 0 | 0 |
Net income attributable to Eaton ordinary shareholders | 466 | 439 |
Other comprehensive loss | -634 | 3 |
Total comprehensive (loss) income attributable to Eaton ordinary shareholders | -168 | 442 |
Eaton Corporation [Member] | ||
Consolidating Statements of Comprehensive Income, Captions [Line Items] | ||
Net sales | 1,702 | 1,667 |
Cost of products sold | 1,310 | 1,342 |
Selling and administrative expense | 377 | 361 |
Research and development expense | 71 | 60 |
Interest expense (income) - net | 54 | 59 |
Other (income) expense - net | -5 | 5 |
Equity in earnings of subsidiaries, net of tax | -211 | 7 |
Intercompany expense (income) - net | -41 | -70 |
Income before income taxes | 147 | -97 |
Income tax (benefit) expense | -22 | -14 |
Net income | 169 | -83 |
Less net income for noncontrolling interests | 0 | 0 |
Net income attributable to Eaton ordinary shareholders | 169 | -83 |
Other comprehensive loss | 46 | 30 |
Total comprehensive (loss) income attributable to Eaton ordinary shareholders | 215 | -53 |
Guarantors [Member] | ||
Consolidating Statements of Comprehensive Income, Captions [Line Items] | ||
Net sales | 1,696 | 1,641 |
Cost of products sold | 1,295 | 1,218 |
Selling and administrative expense | 176 | 200 |
Research and development expense | 45 | 50 |
Interest expense (income) - net | 6 | 7 |
Other (income) expense - net | -1 | 3 |
Equity in earnings of subsidiaries, net of tax | -713 | -491 |
Intercompany expense (income) - net | 271 | 132 |
Income before income taxes | 617 | 522 |
Income tax (benefit) expense | 21 | -7 |
Net income | 596 | 529 |
Less net income for noncontrolling interests | 0 | 0 |
Net income attributable to Eaton ordinary shareholders | 596 | 529 |
Other comprehensive loss | -620 | 25 |
Total comprehensive (loss) income attributable to Eaton ordinary shareholders | -24 | 554 |
Other subsidiaries [Member] | ||
Consolidating Statements of Comprehensive Income, Captions [Line Items] | ||
Net sales | 3,116 | 3,291 |
Cost of products sold | 2,277 | 2,392 |
Selling and administrative expense | 360 | 399 |
Research and development expense | 42 | 52 |
Interest expense (income) - net | -5 | -6 |
Other (income) expense - net | 1 | -13 |
Equity in earnings of subsidiaries, net of tax | -129 | 45 |
Intercompany expense (income) - net | -307 | -90 |
Income before income taxes | 877 | 512 |
Income tax (benefit) expense | 41 | 38 |
Net income | 836 | 474 |
Less net income for noncontrolling interests | -1 | -2 |
Net income attributable to Eaton ordinary shareholders | 835 | 472 |
Other comprehensive loss | -746 | -46 |
Total comprehensive (loss) income attributable to Eaton ordinary shareholders | 89 | 426 |
Consolidating adjustments [Member] | ||
Consolidating Statements of Comprehensive Income, Captions [Line Items] | ||
Net sales | -1,291 | -1,107 |
Cost of products sold | -1,289 | -1,094 |
Selling and administrative expense | 0 | 0 |
Research and development expense | 0 | 0 |
Interest expense (income) - net | 2 | 2 |
Other (income) expense - net | 0 | 0 |
Equity in earnings of subsidiaries, net of tax | 1,598 | 908 |
Intercompany expense (income) - net | 0 | 0 |
Income before income taxes | -1,602 | -923 |
Income tax (benefit) expense | -2 | -5 |
Net income | -1,600 | -918 |
Less net income for noncontrolling interests | 0 | 0 |
Net income attributable to Eaton ordinary shareholders | -1,600 | -918 |
Other comprehensive loss | 1,320 | -9 |
Total comprehensive (loss) income attributable to Eaton ordinary shareholders | ($280) | ($927) |
Condensed_Consolidating_Financ4
Condensed Consolidating Financial Information Condensed Consolidating Balance Sheets (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||||
Condensed Consolidating Balance Sheets, Captions [Line Items] | ||||
Cash | $663 | $781 | $784 | $915 |
Short-term investments | 139 | 245 | ||
Accounts receivable - net | 3,733 | 3,667 | ||
Intercompany accounts receivable | 0 | 0 | ||
Inventory | 2,424 | 2,428 | ||
Deferred income taxes | 576 | 593 | ||
Prepaid expenses and other current assets | 405 | 386 | ||
Total current assets | 7,940 | 8,100 | ||
Property, plant and equipment - net | 3,634 | 3,750 | ||
Goodwill | 13,548 | 13,893 | ||
Other intangible assets | 6,317 | 6,556 | ||
Deferred income taxes | 220 | 228 | ||
Investment in subsidiaries | 0 | 0 | ||
Intercompany loans receivables | 0 | 0 | ||
Other assets | 1,037 | 1,002 | ||
Total assets | 32,696 | 33,529 | ||
Short-term debt | 267 | 2 | ||
Current portion of long-term debt | 1,244 | 1,008 | ||
Accounts payable | 1,969 | 1,940 | ||
Intercompany accounts payable | 0 | 0 | ||
Accrued compensation | 282 | 420 | ||
Other current liabilities | 1,904 | 1,985 | ||
Total current liabilities | 5,666 | 5,355 | ||
Long-term debt | 7,829 | 8,024 | ||
Pension liabilities | 1,530 | 1,812 | ||
Other postretirement benefits liabilities | 506 | 513 | ||
Deferred income taxes | 881 | 901 | ||
Intercompany loans payable | 0 | 0 | ||
Other noncurrent liabilities | 1,020 | 1,085 | ||
Total noncurrent liabilities | 11,766 | 12,335 | ||
Eaton shareholders' equity | 15,210 | 15,786 | ||
Noncontrolling interests | 54 | 53 | ||
Total equity | 15,264 | 15,839 | ||
Total liabilities and equity | 32,696 | 33,529 | ||
Eaton Corporation plc [Member] | ||||
Condensed Consolidating Balance Sheets, Captions [Line Items] | ||||
Cash | 7 | 1 | 8 | 3 |
Short-term investments | 0 | 0 | ||
Accounts receivable - net | 0 | 0 | ||
Intercompany accounts receivable | 4 | 2 | ||
Inventory | 0 | 0 | ||
Deferred income taxes | 0 | 0 | ||
Prepaid expenses and other current assets | 0 | 0 | ||
Total current assets | 11 | 3 | ||
Property, plant and equipment - net | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Other intangible assets | 0 | 0 | ||
Deferred income taxes | 0 | 0 | ||
Investment in subsidiaries | 26,508 | 26,612 | ||
Intercompany loans receivables | 0 | 0 | ||
Other assets | 0 | 0 | ||
Total assets | 26,519 | 26,615 | ||
Short-term debt | 0 | 0 | ||
Current portion of long-term debt | 0 | 0 | ||
Accounts payable | 0 | 0 | ||
Intercompany accounts payable | 59 | 117 | ||
Accrued compensation | 0 | 0 | ||
Other current liabilities | 7 | 1 | ||
Total current liabilities | 66 | 118 | ||
Long-term debt | 0 | 0 | ||
Pension liabilities | 0 | 0 | ||
Other postretirement benefits liabilities | 0 | 0 | ||
Deferred income taxes | 0 | 0 | ||
Intercompany loans payable | 11,243 | 10,711 | ||
Other noncurrent liabilities | 0 | 0 | ||
Total noncurrent liabilities | 11,243 | 10,711 | ||
Eaton shareholders' equity | 15,210 | 15,786 | ||
Noncontrolling interests | 0 | 0 | ||
Total equity | 15,210 | 15,786 | ||
Total liabilities and equity | 26,519 | 26,615 | ||
Eaton Corporation [Member] | ||||
Condensed Consolidating Balance Sheets, Captions [Line Items] | ||||
Cash | 36 | 173 | 46 | 51 |
Short-term investments | 0 | 0 | ||
Accounts receivable - net | 557 | 500 | ||
Intercompany accounts receivable | 557 | 759 | ||
Inventory | 384 | 397 | ||
Deferred income taxes | 355 | 368 | ||
Prepaid expenses and other current assets | 122 | 96 | ||
Total current assets | 2,011 | 2,293 | ||
Property, plant and equipment - net | 966 | 972 | ||
Goodwill | 1,355 | 1,355 | ||
Other intangible assets | 192 | 196 | ||
Deferred income taxes | 892 | 889 | ||
Investment in subsidiaries | 12,410 | 12,179 | ||
Intercompany loans receivables | 7,766 | 7,542 | ||
Other assets | 583 | 533 | ||
Total assets | 26,175 | 25,959 | ||
Short-term debt | 250 | 0 | ||
Current portion of long-term debt | 701 | 702 | ||
Accounts payable | 493 | 475 | ||
Intercompany accounts payable | 4,022 | 4,125 | ||
Accrued compensation | 32 | 112 | ||
Other current liabilities | 712 | 674 | ||
Total current liabilities | 6,210 | 6,088 | ||
Long-term debt | 7,122 | 7,079 | ||
Pension liabilities | 586 | 726 | ||
Other postretirement benefits liabilities | 280 | 283 | ||
Deferred income taxes | 14 | 0 | ||
Intercompany loans payable | 2,768 | 2,723 | ||
Other noncurrent liabilities | 420 | 457 | ||
Total noncurrent liabilities | 11,190 | 11,268 | ||
Eaton shareholders' equity | 8,775 | 8,603 | ||
Noncontrolling interests | 0 | 0 | ||
Total equity | 8,775 | 8,603 | ||
Total liabilities and equity | 26,175 | 25,959 | ||
Guarantors [Member] | ||||
Condensed Consolidating Balance Sheets, Captions [Line Items] | ||||
Cash | 257 | 13 | 12 | 10 |
Short-term investments | 1 | 1 | ||
Accounts receivable - net | 1,013 | 955 | ||
Intercompany accounts receivable | 3,835 | 3,820 | ||
Inventory | 668 | 637 | ||
Deferred income taxes | 134 | 132 | ||
Prepaid expenses and other current assets | 41 | 39 | ||
Total current assets | 5,949 | 5,597 | ||
Property, plant and equipment - net | 747 | 756 | ||
Goodwill | 6,256 | 6,256 | ||
Other intangible assets | 3,764 | 3,811 | ||
Deferred income taxes | 2 | 10 | ||
Investment in subsidiaries | 57,827 | 58,687 | ||
Intercompany loans receivables | 2,112 | 2,249 | ||
Other assets | 132 | 141 | ||
Total assets | 76,789 | 77,507 | ||
Short-term debt | 0 | 0 | ||
Current portion of long-term debt | 542 | 304 | ||
Accounts payable | 343 | 340 | ||
Intercompany accounts payable | 2,706 | 3,449 | ||
Accrued compensation | 44 | 59 | ||
Other current liabilities | 302 | 340 | ||
Total current liabilities | 3,937 | 4,492 | ||
Long-term debt | 687 | 932 | ||
Pension liabilities | 138 | 183 | ||
Other postretirement benefits liabilities | 135 | 136 | ||
Deferred income taxes | 1,165 | 1,160 | ||
Intercompany loans payable | 36,310 | 36,162 | ||
Other noncurrent liabilities | 181 | 183 | ||
Total noncurrent liabilities | 38,616 | 38,756 | ||
Eaton shareholders' equity | 34,236 | 34,259 | ||
Noncontrolling interests | 0 | 0 | ||
Total equity | 34,236 | 34,259 | ||
Total liabilities and equity | 76,789 | 77,507 | ||
Other subsidiaries [Member] | ||||
Condensed Consolidating Balance Sheets, Captions [Line Items] | ||||
Cash | 363 | 594 | 718 | 851 |
Short-term investments | 138 | 244 | ||
Accounts receivable - net | 2,163 | 2,212 | ||
Intercompany accounts receivable | 3,390 | 4,101 | ||
Inventory | 1,425 | 1,445 | ||
Deferred income taxes | 87 | 93 | ||
Prepaid expenses and other current assets | 248 | 247 | ||
Total current assets | 7,814 | 8,936 | ||
Property, plant and equipment - net | 1,921 | 2,022 | ||
Goodwill | 5,937 | 6,282 | ||
Other intangible assets | 2,361 | 2,549 | ||
Deferred income taxes | 145 | 137 | ||
Investment in subsidiaries | 9,184 | 9,145 | ||
Intercompany loans receivables | 41,301 | 40,635 | ||
Other assets | 322 | 328 | ||
Total assets | 68,985 | 70,034 | ||
Short-term debt | 17 | 2 | ||
Current portion of long-term debt | 1 | 2 | ||
Accounts payable | 1,133 | 1,125 | ||
Intercompany accounts payable | 999 | 991 | ||
Accrued compensation | 206 | 249 | ||
Other current liabilities | 907 | 984 | ||
Total current liabilities | 3,263 | 3,353 | ||
Long-term debt | 18 | 13 | ||
Pension liabilities | 806 | 903 | ||
Other postretirement benefits liabilities | 91 | 94 | ||
Deferred income taxes | 521 | 549 | ||
Intercompany loans payable | 858 | 830 | ||
Other noncurrent liabilities | 419 | 445 | ||
Total noncurrent liabilities | 2,713 | 2,834 | ||
Eaton shareholders' equity | 62,963 | 63,802 | ||
Noncontrolling interests | 46 | 45 | ||
Total equity | 63,009 | 63,847 | ||
Total liabilities and equity | 68,985 | 70,034 | ||
Consolidating adjustments [Member] | ||||
Condensed Consolidating Balance Sheets, Captions [Line Items] | ||||
Cash | 0 | 0 | 0 | 0 |
Short-term investments | 0 | 0 | ||
Accounts receivable - net | 0 | 0 | ||
Intercompany accounts receivable | -7,786 | -8,682 | ||
Inventory | -53 | -51 | ||
Deferred income taxes | 0 | 0 | ||
Prepaid expenses and other current assets | -6 | 4 | ||
Total current assets | -7,845 | -8,729 | ||
Property, plant and equipment - net | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Other intangible assets | 0 | 0 | ||
Deferred income taxes | -819 | -808 | ||
Investment in subsidiaries | -105,929 | -106,623 | ||
Intercompany loans receivables | -51,179 | -50,426 | ||
Other assets | 0 | 0 | ||
Total assets | -165,772 | -166,586 | ||
Short-term debt | 0 | 0 | ||
Current portion of long-term debt | 0 | 0 | ||
Accounts payable | 0 | 0 | ||
Intercompany accounts payable | -7,786 | -8,682 | ||
Accrued compensation | 0 | 0 | ||
Other current liabilities | -24 | -14 | ||
Total current liabilities | -7,810 | -8,696 | ||
Long-term debt | 2 | 0 | ||
Pension liabilities | 0 | 0 | ||
Other postretirement benefits liabilities | 0 | 0 | ||
Deferred income taxes | -819 | -808 | ||
Intercompany loans payable | -51,179 | -50,426 | ||
Other noncurrent liabilities | 0 | 0 | ||
Total noncurrent liabilities | -51,996 | -51,234 | ||
Eaton shareholders' equity | -105,974 | -106,664 | ||
Noncontrolling interests | 8 | 8 | ||
Total equity | -105,966 | -106,656 | ||
Total liabilities and equity | ($165,772) | ($166,586) |
Condensed_Consolidating_Financ5
Condensed Consolidating Financial Information Condensed Consolidating Statements of Cash Flows (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Condensed Consolidating Statements of Cash Flows, Captions [Line Items] | ||
Net cash (used in) provided by operating activities | $77 | $12 |
Cash paid for acquisitions of businesses, net of cash acquired | -38 | 0 |
Capital expenditures for property, plant and equipment | -105 | -110 |
Sales of short-term investments - net | 99 | 431 |
Loans to affiliates | 0 | 0 |
Repayments of loans from affiliates | 0 | 0 |
Proceeds from sale of businesses | 0 | 3 |
Other - net | -9 | -20 |
Net cash (used in) provided by investing activities | -53 | 304 |
Proceeds from borrowings | 266 | 0 |
Payments on borrowings | -3 | -257 |
Proceeds from borrowings from affiliates | 0 | 0 |
Payments on borrowings from affiliates | 0 | 0 |
Other intercompany financing activities | 0 | 0 |
Cash dividends paid | -251 | -229 |
Exercise of employee stock options | 33 | 23 |
Repurchase of shares | -170 | 0 |
Excess tax benefit from equity-based compensation | 0 | 20 |
Other - net | -2 | 0 |
Net cash used in financing activities | -127 | -443 |
Effect of currency on cash | -15 | -4 |
Total decrease in cash | -118 | -131 |
Cash at the beginning of the period | 781 | 915 |
Cash at the end of the period | 663 | 784 |
Eaton Corporation plc [Member] | ||
Condensed Consolidating Statements of Cash Flows, Captions [Line Items] | ||
Net cash (used in) provided by operating activities | -82 | -6 |
Cash paid for acquisitions of businesses, net of cash acquired | 0 | |
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 businesses | 0 | |
Other - net | 0 | 0 |
Net cash (used in) provided by investing activities | 0 | 0 |
Proceeds from borrowings | 0 | |
Payments on borrowings | 0 | 0 |
Proceeds from borrowings from affiliates | 500 | 0 |
Payments on borrowings from affiliates | -24 | 0 |
Other intercompany financing activities | 0 | 217 |
Cash dividends paid | -251 | -229 |
Exercise of employee stock options | 33 | 23 |
Repurchase of shares | -170 | |
Excess tax benefit from equity-based compensation | 0 | |
Other - net | 0 | |
Net cash used in financing activities | 88 | 11 |
Effect of currency on cash | 0 | 0 |
Total decrease in cash | 6 | 5 |
Cash at the beginning of the period | 1 | 3 |
Cash at the end of the period | 7 | 8 |
Eaton Corporation [Member] | ||
Condensed Consolidating Statements of Cash Flows, Captions [Line Items] | ||
Net cash (used in) provided by operating activities | -187 | -440 |
Cash paid for acquisitions of businesses, net of cash acquired | 0 | |
Capital expenditures for property, plant and equipment | -21 | -25 |
Sales of short-term investments - net | 0 | 0 |
Loans to affiliates | -154 | -7 |
Repayments of loans from affiliates | 0 | 171 |
Proceeds from sale of businesses | 0 | |
Other - net | -20 | -13 |
Net cash (used in) provided by investing activities | -195 | 126 |
Proceeds from borrowings | 250 | |
Payments on borrowings | -2 | -251 |
Proceeds from borrowings from affiliates | 2,982 | 946 |
Payments on borrowings from affiliates | -2,826 | -510 |
Other intercompany financing activities | -159 | 104 |
Cash dividends paid | 0 | 0 |
Exercise of employee stock options | 0 | 0 |
Repurchase of shares | 0 | |
Excess tax benefit from equity-based compensation | 20 | |
Other - net | 0 | |
Net cash used in financing activities | 245 | 309 |
Effect of currency on cash | 0 | 0 |
Total decrease in cash | -137 | -5 |
Cash at the beginning of the period | 173 | 51 |
Cash at the end of the period | 36 | 46 |
Guarantors [Member] | ||
Condensed Consolidating Statements of Cash Flows, Captions [Line Items] | ||
Net cash (used in) provided by operating activities | 19 | 182 |
Cash paid for acquisitions of businesses, net of cash acquired | 0 | |
Capital expenditures for property, plant and equipment | -26 | -29 |
Sales of short-term investments - net | 0 | 98 |
Loans to affiliates | 0 | 0 |
Repayments of loans from affiliates | 11 | 0 |
Proceeds from sale of businesses | 0 | |
Other - net | 19 | -1 |
Net cash (used in) provided by investing activities | 4 | 68 |
Proceeds from borrowings | 0 | |
Payments on borrowings | 0 | 0 |
Proceeds from borrowings from affiliates | 153 | 110 |
Payments on borrowings from affiliates | 0 | -304 |
Other intercompany financing activities | 68 | -54 |
Cash dividends paid | 0 | 0 |
Exercise of employee stock options | 0 | 0 |
Repurchase of shares | 0 | |
Excess tax benefit from equity-based compensation | 0 | |
Other - net | 0 | |
Net cash used in financing activities | 221 | -248 |
Effect of currency on cash | 0 | 0 |
Total decrease in cash | 244 | 2 |
Cash at the beginning of the period | 13 | 10 |
Cash at the end of the period | 257 | 12 |
Other subsidiaries [Member] | ||
Condensed Consolidating Statements of Cash Flows, Captions [Line Items] | ||
Net cash (used in) provided by operating activities | 327 | 276 |
Cash paid for acquisitions of businesses, net of cash acquired | -38 | |
Capital expenditures for property, plant and equipment | -58 | -56 |
Sales of short-term investments - net | 99 | 333 |
Loans to affiliates | -3,482 | -1,056 |
Repayments of loans from affiliates | 2,850 | 814 |
Proceeds from sale of businesses | 3 | |
Other - net | -8 | -6 |
Net cash (used in) provided by investing activities | -637 | 32 |
Proceeds from borrowings | 16 | |
Payments on borrowings | -1 | -6 |
Proceeds from borrowings from affiliates | 1 | 7 |
Payments on borrowings from affiliates | -11 | -171 |
Other intercompany financing activities | 91 | -267 |
Cash dividends paid | 0 | 0 |
Exercise of employee stock options | 0 | 0 |
Repurchase of shares | 0 | |
Excess tax benefit from equity-based compensation | 0 | |
Other - net | -2 | |
Net cash used in financing activities | 94 | -437 |
Effect of currency on cash | -15 | -4 |
Total decrease in cash | -231 | -133 |
Cash at the beginning of the period | 594 | 851 |
Cash at the end of the period | 363 | 718 |
Consolidating adjustments [Member] | ||
Condensed Consolidating Statements of Cash Flows, Captions [Line Items] | ||
Net cash (used in) provided by operating activities | 0 | 0 |
Cash paid for acquisitions of businesses, net of cash acquired | 0 | |
Capital expenditures for property, plant and equipment | 0 | 0 |
Sales of short-term investments - net | 0 | 0 |
Loans to affiliates | 3,636 | 1,063 |
Repayments of loans from affiliates | -2,861 | -985 |
Proceeds from sale of businesses | 0 | |
Other - net | 0 | 0 |
Net cash (used in) provided by investing activities | 775 | 78 |
Proceeds from borrowings | 0 | |
Payments on borrowings | 0 | 0 |
Proceeds from borrowings from affiliates | -3,636 | -1,063 |
Payments on borrowings from affiliates | 2,861 | 985 |
Other intercompany financing activities | 0 | 0 |
Cash dividends paid | 0 | 0 |
Exercise of employee stock options | 0 | 0 |
Repurchase of shares | 0 | |
Excess tax benefit from equity-based compensation | 0 | |
Other - net | 0 | |
Net cash used in financing activities | -775 | -78 |
Effect of currency on cash | 0 | 0 |
Total decrease in cash | 0 | 0 |
Cash at the beginning of the period | 0 | 0 |
Cash at the end of the period | $0 | $0 |