Retirement Benefits Plans (Tables)

12 Months Ended

Dec. 31, 2012

Retirement Benefit Plans (Tables) [Abstract]

Obligations and funded status

Obligations and Funded Status

	United States pension liabilities						Non-United States pension liabilities						Other postretirement liabilities
	2012			2011			2012			2011			2012			2011
Funded status
Fair value of plan assets	$	2,607		$	1,664		$	1,248		$	989		$	146		$	156
Benefit obligations	(3,817		)	(2,899		)	(2,006		)	(1,505		)	(940		)	(853		)
Funded status	$	(1,210	)	$	(1,235	)	$	(758	)	$	(516	)	$	(794	)	$	(697	)
Amounts recognized in the Consolidated    Balance Sheets
Non-current assets	$	—		$	—		$	71		$	78		$	—		$	—
Current liabilities	(15		)	(12		)	(27		)	(24		)	(62		)	(55		)
Non-current liabilities	(1,195		)	(1,223		)	(802		)	(570		)	(732		)	(642		)
Total	$	(1,210	)	$	(1,235	)	$	(758	)	$	(516	)	$	(794	)	$	(697	)
Amounts recognized in Accumulated other    comprehensive loss (pretax)
Net actuarial loss	$	1,618		$	1,601		$	550		$	348		$	269		$	257
Prior service cost (credit)	1			1			9			10			(7		)	(9		)
Other	2			—			—			—			—			—
Total	$	1,621		$	1,602		$	559		$	358		$	262		$	248

Change in benefit obligations

Change in Benefit Obligations

	United States pension liabilities						Non-United States pension liabilities						Other postretirement liabilities
	2012			2011			2012			2011			2012			2011
Balance at January 1	$	2,899		$	2,458		$	1,505		$	1,460		$	853		$	826
Service cost	115			93			50			48			17			15
Interest cost	134			132			77			78			38			41
Actuarial loss	264			346			196			26			34			41
Gross benefits paid	(132		)	(131		)	(78		)	(82		)	(94		)	(101		)
Currency translation	—			—			54			(23		)	—			(1		)
Acquisitions	536			—			201			—			64			—
Other	1			1			1			(2		)	28			32
Balance at December 31	$	3,817		$	2,899		$	2,006		$	1,505		$	940		$	853
Accumulated benefit obligation	$	3,639		$	2,762		$	1,878		$	1,364

Change in plan assets

Change in Plan Assets

	United States pension liabilities						Non-United States pension liabilities						Other postretirement liabilities
	2012			2011			2012			2011			2012			2011
Balance at January 1	$	1,664		$	1,572		$	989		$	937		$	156		$	—
Actual return on plan assets	293			(41		)	86			39			13			2
Employer contributions	311			264			102			108			43			223
Gross benefits paid	(132		)	(131		)	(78		)	(82		)	(94		)	(101		)
Currency translation	—			—			39			(6		)	—			—
Acquisitions	471			—			128			—			—			—
Other	—			—			(18		)	(7		)	28			32
Balance at December 31	$	2,607		$	1,664		$	1,248		$	989		$	146		$	156

Components of pension plans with accumulated benefit obligations in excess of plan assets

The components of pension plans with an accumulated benefit obligation in excess of plan assets at December 31 follow:

	United States pension liabilities				Non-United States pension liabilities
	2012		2011		2012		2011
Projected benefit obligation	$	3,817	$	2,899	$	1,405	$	990
Accumulated benefit obligation	3,639		2,762		1,300		925
Fair value of plan assets	2,607		1,664		657		446

Changes in pension and other postretirement benefits liabilities recognized in Accumulated other comprehensive loss

Changes in pension and other postretirement benefit liabilities recognized in Accumulated other comprehensive loss follow:

	United States pension liabilities						Non-United States pension liabilities						Other postretirement liabilities
	2012			2011			2012			2011			2012			2011
Balance at January 1	$	1,602		$	1,142		$	358		$	319		$	248		$	221
Prior service cost arising during the year	1			1			—			4			—			—
Net loss arising during the year	154			551			205			58			27			39
Currency translation	—			—			15			(5		)	—			—
Less amounts included in expense during the year	(138		)	(92		)	(19		)	(18		)	(13		)	(12		)
Other	2			—			—			—			—			—
Net change for the year	19			460			201			39			14			27
Balance at December 31	$	1,621		$	1,602		$	559		$	358		$	262		$	248

Benefits expense

Benefits Expense

	United States pension benefit expense									Non-United States pension benefit expense									Other postretirement benefits expense
	2012			2011			2010			2012			2011			2010			2012			2011		2010
Service cost	$	115		$	93		$	80		$	50		$	48		$	39		$	17		$	15	$	16
Interest cost	134			132			131			77			78			69			38			41		46
Expected return on plan assets	(183		)	(164		)	(156		)	(77		)	(70		)	(62		)	(6		)	—		—
Amortization	118			75			53			15			13			8			13			12		10
	184			136			108			65			69			54			62			68		72
Curtailment loss	—			—			1			1			1			—			—			—		—
Settlement loss	20			17			16			3			4			—			—			—		—
Total expense	$	204		$	153		$	125		$	69		$	74		$	54		$	62		$	68	$	72

Estimated pretax net amounts that will be recognized from Accumulated other comprehensive loss into net periodic benefit cost

The estimated pretax net amounts that will be recognized from Accumulated other comprehensive loss into net periodic benefit cost in 2013 follow:

	United States pension liabilities		Non-United States pension liabilities		Other postretirement liabilities
Actuarial loss	$	176	$	27	$	15
Prior service cost (credit)	—		1		(2		)
Total	$	176	$	28	$	13

Assumptions used to determine other postretirement obligations and expense

Pension Plans

	United States pension plans						Non-United States pension plans
	2012		2011		2010		2012		2011		2010
Assumptions used to determine benefit obligation at year-end
Discount rate	3.97	%	4.70	%	5.50	%	4.17	%	5.12	%	5.40	%
Rate of compensation increase	3.16	%	3.15	%	3.61	%	3.09	%	3.62	%	3.63	%
Assumptions used to determine expense
Discount rate	4.70	%	5.50	%	6.00	%	5.12	%	5.40	%	5.59	%
Expected long-term return on plan assets	8.50	%	8.50	%	8.95	%	7.10	%	7.17	%	7.20	%
Rate of compensation increase	3.15	%	3.61	%	3.62	%	3.62	%	3.63	%	3.58	%

Assumptions used to determine other postretirement benefits obligations and expense

Assumptions used to determine other postretirement benefits obligations and expense follow:

	Other postretirement benefits plans
	2012		2011		2010
Assumptions used to determine benefit obligation at year-end
Discount rate	3.79	%	4.60	%	5.20	%
Health care cost trend rate assumed for next year	6.96	%	7.60	%	8.10	%
Ultimate health care cost trend rate	4.53	%	4.50	%	4.50	%
Year ultimate health care cost trend rate is achieved	2022		2020		2020
Assumptions used to determine expense
Discount rate	4.60	%	5.20	%	5.70	%
Initial health care cost trend rate	7.60	%	8.10	%	8.30	%
Ultimate health care cost trend rate	4.50	%	4.50	%	4.75	%
Year ultimate health care cost trend rate is achieved	2020		2020		2017

1-percentage change in the assumed health care cost trend rates

A 1-percentage point change in the assumed health care cost trend rates would have the following effects:

	1% increase		1% decrease
Effect on total service and interest cost	$	1	$	(1	)
Effect on other postretirement liabilities	22		(20		)

Employer contributions to pension plans

Contributions to pension plans that Eaton expects to make in 2013, and made in 2012, 2011 and 2010, follow:

	2013		2012		2011		2010
United States plans	$	191	$	311	$	264	$	313
Non-United States plans	112		102		108		90
Total contributions	$	303	$	413	$	372	$	403

Expected pension and other postretirement benefit payments and expected subsidy

For other postretirement benefits liabilities, the expected subsidy receipts relate to the Medicare Prescription Drug, Improvement, and Modernization Act of 2003, which would reduce the gross payments listed below.

	Estimated United States pension payments		Estimated non-United States pension payments		Estimated other postretirement benefit payments
					Gross		Medicare prescription drug subsidy
2013	$	228	$	89	$	93	$	(7	)
2014	405		90		91		(6		)
2015	255		92		84		(6		)
2016	272		95		81		(5		)
2017	279		98		77		(5		)
2018 - 2022	1,473		535		328		(13		)

Fair value of pension plan assets

A summary of the fair value of pension plan assets at December 31, 2012 and 2011, follows:

	Total		Quoted prices in active markets for identical assets (Level 1)		Other observable inputs (Level 2)		Unobservable inputs (Level 3)
2012
Common collective trusts
Non-United States equity and global equities	$	1,313	$	—	$	1,313	$	—
United States equity	978		—		978		—
Fixed income	538		—		538		—
Long duration funds	61		—		61		—
Exchange traded funds	43		—		43		—
Fixed income securities	331		—		331		—
United States treasuries	143		143		—		—
Real estate	124		119		—		5
Equity securities	104		104		—		—
Cash equivalents	140		7		133		—
Registered investment companies	40		40		—		—
Other	40		3		1		36
Total pension plan assets	$	3,855	$	416	$	3,398	$	41

	Total		Quoted prices in active markets for identical assets (Level 1)		Other observable inputs (Level 2)		Unobservable inputs (Level 3)
2011
Common collective trusts
Non-United States equity and global equities	$	925	$	—	$	925	$	—
United States equity	642		—		642		—
Fixed income	263		—		263		—
Long duration funds	107		—		107		—
Fixed income securities	296		—		296		—
United States treasuries	120		120		—		—
Real estate	82		82		—		—
Equity securities	79		79		—		—
Cash equivalents	67		9		58		—
Registered investment companies	35		35		—		—
Other	37		2		—		35
Total pension plan assets	$	2,653	$	327	$	2,291	$	35

Fair value of other postretirement benefits plan assets

A summary of the fair value of other postretirement benefits plan assets at December 31, 2012 and 2011, follows:

	Total		Quoted prices in active markets for identical assets (Level 1)		Other observable inputs (Level 2)		Unobservable inputs (Level 3)
2012
Common collective trusts
Global equities	$	75	$	—	$	75	$	—
Fixed income securities	67		—		67		—
Cash equivalents	5		5		—		—
Total other postretirement benefits plan assets	$	147	$	5	$	142	$	—

2011
Common collective trusts
Global equities	$	52	$	—	$	52	$	—
Fixed income securities	50		—		50		—
Cash equivalents	54		54		—		—
Total other postretirement benefits plan assets	$	156	$	54	$	102	$	—

Employer contributions to defined contribution benefit plans, charged to expense

The total contributions related to these plans are charged to expense and were as follows:

2012	$	74
2011	65
2010	33