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Retirement Benefits Plans (Tables)
12 Months Ended
Dec. 31, 2011
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
 
2011
 
2010
 
2011
 
2010
 
2011
 
2010
Funded status
 
 
 
 
 
 
 
 
 
 
 
Fair value of plan assets
$
1,664

 
$
1,572

 
$
989

 
$
937

 
$
156

 
$

Benefit obligations
(2,899
)
 
(2,458
)
 
(1,505
)
 
(1,460
)
 
(853
)
 
(826
)
Funded status
$
(1,235
)
 
$
(886
)
 
$
(516
)
 
$
(523
)
 
$
(697
)
 
$
(826
)
 
 
 
 
 
 
 
 
 
 
 
 
Amounts recognized in the Consolidated
   Balance Sheets
 
 
 
 
 
 
 
 
 
 
 
Non-current assets
$

 
$

 
$
78

 
$
52

 
$

 
$

Current liabilities
(12
)
 
(9
)
 
(24
)
 
(23
)
 
(55
)
 
(83
)
Non-current liabilities
(1,223
)
 
(877
)
 
(570
)
 
(552
)
 
(642
)
 
(743
)
Total
$
(1,235
)
 
$
(886
)
 
$
(516
)
 
$
(523
)
 
$
(697
)
 
$
(826
)
 
 
 
 
 
 
 
 
 
 
 
 
Amounts recognized in Accumulated other
   comprehensive loss (pretax)
 
 
 
 
 
 
 
 
 
 
 
Net actuarial loss
$
1,601

 
$
1,142

 
$
348

 
$
311

 
$
257

 
$
232

Prior service cost (credit)
1

 

 
10

 
8

 
(9
)
 
(11
)
Total
$
1,602

 
$
1,142

 
$
358

 
$
319

 
$
248

 
$
221

Change in benefit obligations
Change in Benefit Obligations
 
United States
pension liabilities
 
Non-United States
pension liabilities
 
Other postretirement
liabilities
 
2011
 
2010
 
2011
 
2010
 
2011
 
2010
Balance at January 1
$
2,458

 
$
2,244

 
$
1,460

 
$
1,366

 
$
826

 
$
830

Service cost
93

 
80

 
48

 
39

 
15

 
16

Interest cost
132

 
131

 
78

 
69

 
41

 
46

Actuarial loss
346

 
133

 
26

 
94

 
41

 
15

Gross benefits paid
(131
)
 
(122
)
 
(82
)
 
(76
)
 
(101
)
 
(107
)
Foreign currency translation

 

 
(23
)
 
(53
)
 
(1
)
 
1

Other
1

 
(8
)
 
(2
)
 
21

 
32

 
25

Balance at December 31
$
2,899

 
$
2,458

 
$
1,505

 
$
1,460

 
$
853

 
$
826

 
 
 
 
 
 
 
 
 
 
 
 
Accumulated benefit obligation
$
2,762

 
$
2,366

 
$
1,364

 
$
1,330

 
 
 
 
Change in plan assets
Change in Plan Assets
 
United States
pension liabilities
 
Non-United States
pension liabilities
 
Other postretirement
liabilities
 
2011
 
2010
 
2011
 
2010
 
2011
 
2010
Balance at January 1
$
1,572

 
$
1,210

 
$
937

 
$
832

 
$

 
$

Actual return on plan assets
(41
)
 
182

 
39

 
96

 
2

 

Employer contributions
264

 
313

 
108

 
90

 
223

 
82

Gross benefits paid
(131
)
 
(122
)
 
(82
)
 
(76
)
 
(101
)
 
(107
)
Foreign currency translation

 

 
(6
)
 
(21
)
 

 

Other

 
(11
)
 
(7
)
 
16

 
32

 
25

Balance at December 31
$
1,664

 
$
1,572

 
$
989

 
$
937

 
$
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
 
2011
 
2010
 
2011
 
2010
Projected benefit obligation
$
2,899

 
$
2,458

 
$
990

 
$
1,114

Accumulated benefit obligation
2,762

 
2,366

 
925

 
1,026

Fair value of plan assets
1,664

 
1,572

 
446

 
554

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
 
2011
 
2010
 
2011
 
2010
 
2011
 
2010
Balance at January 1
$
1,142

 
$
1,107

 
$
319

 
$
263

 
$
221

 
$
216

Prior service cost arising during the year
1

 
1

 
4

 
1

 

 

Net loss arising during the year
551

 
107

 
58

 
60

 
39

 
15

Foreign currency translation

 

 
(5
)
 
(5
)
 

 

Less amounts included in expense during the year
(92
)
 
(69
)
 
(18
)
 
(8
)
 
(12
)
 
(10
)
Other

 
(4
)
 

 
8

 

 

Net change for the year
460

 
35

 
39

 
56

 
27

 
5

Balance at December 31
$
1,602

 
$
1,142

 
$
358

 
$
319

 
$
248

 
$
221

Benefits expense
Benefits Expense
 
United States
pension benefit expense
 
Non-United States
pension benefit expense
 
Other postretirement
benefits expense
 
2011
 
2010
 
2009
 
2011
 
2010
 
2009
 
2011
 
2010
 
2009
Service cost
$
93

 
$
80

 
$
76

 
$
48

 
$
39

 
$
34

 
$
15

 
$
16

 
$
15

Interest cost
132

 
131

 
133

 
78

 
69

 
70

 
41

 
46

 
49

Expected return on plan assets
(164
)
 
(156
)
 
(131
)
 
(70
)
 
(62
)
 
(58
)
 

 

 

Amortization
75

 
53

 
34

 
13

 
8

 
4

 
12

 
10

 
1

 
136

 
108

 
112

 
69

 
54

 
50

 
68

 
72

 
65

Curtailment loss

 
1

 
17

 
1

 

 
5

 

 

 
1

Settlement loss
17

 
16

 
83

 
4

 

 
3

 

 

 

Total expense
$
153

 
$
125

 
$
212

 
$
74

 
$
54

 
$
58

 
$
68

 
$
72

 
$
66

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 2012 follow:
 
United States
pension liabilities
 
Non-United States
pension liabilities
 
Other postretirement
liabilities
Actuarial loss
$
145

 
$
15

 
$
15

Prior service cost (credit)

 
1

 
(2
)
Total
$
145

 
$
16

 
$
13

Assumptions used to determine other postretirement obligations and expense
Retirement Benefits Plans Assumptions
Pension Plans
 
United States
pension plans
 
Non-United States
pension plans
 
2011
 
2010
 
2009
 
2011
 
2010
 
2009
Assumptions used to determine benefit obligation at year-end
 
 
 
 
 
 
 
 
 
 
 
Discount rate
4.70
%
 
5.50
%
 
6.00
%
 
5.12
%
 
5.40
%
 
5.59
%
Rate of compensation increase
3.15
%
 
3.61
%
 
3.62
%
 
3.62
%
 
3.63
%
 
3.58
%
 
 
 
 
 
 
 
 
 
 
 
 
Assumptions used to determine expense
 
 
 
 
 
 
 
 
 
 
 
Discount rate
5.50
%
 
6.00
%
 
6.30
%
 
5.40
%
 
5.59
%
 
6.26
%
Expected long-term return on plan assets
8.50
%
 
8.95
%
 
8.94
%
 
7.17
%
 
7.20
%
 
7.06
%
Rate of compensation increase
3.61
%
 
3.62
%
 
3.64
%
 
3.63
%
 
3.58
%
 
3.56
%
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
 
2011
 
2010
 
2009
Assumptions used to determine benefit obligation at year-end
 
 
 
 
 
Discount rate
4.60
%
 
5.20
%
 
5.70
%
Health care cost trend rate assumed for next year
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

 
 
 
 
 
 
Assumptions used to determine expense
 
 
 
 
 
Discount rate
5.20
%
 
5.70
%
 
6.30
%
Initial health care cost trend rate
8.10
%
 
8.30
%
 
8.25
%
Ultimate health care cost trend rate
4.50
%
 
4.75
%
 
4.75
%
Year ultimate health care cost trend rate is achieved
2020

 
2017

 
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
18

 
(16
)
Employer contributions to pension plans
Contributions to pension plans that Eaton expects to make in 2012, and made in 2011, 2010 and 2009, follow:
 
2012
 
2011
 
2010
 
2009
United States plans
$
316

 
$
264

 
$
313

 
$
192

Non-United States plans
96

 
108

 
90

 
79

Total contributions
$
412

 
$
372

 
$
403

 
$
271

Expected pension and other postretirement benefit payments and expected subsidy
The following table provides the estimated pension and other postretirement benefit payments for each of the next five years, and the five years thereafter in the aggregate. For other postretirement benefits liabilities, the expected subsidy receipts relate to the Medicare Prescription Drug, Improvement, and Modernization Act of 2003, which would reduce the gross payments listed below.
 
Estimated
United States
pension payments
 
Estimated
non-United States
pension payments
 
Estimated other postretirement
benefit payments
 
 
 
Gross
 
Medicare prescription
drug subsidy
2012
$
143

 
$
86

 
$
91

 
$
(7
)
2013
148

 
74

 
92

 
(7
)
2014
329

 
75

 
85

 
(7
)
2015
205

 
77

 
81

 
(7
)
2016
215

 
80

 
78

 
(6
)
2017 - 2021
1,206

 
431

 
325

 
(12
)
Fair value of pension plan assets
A summary of the fair value of pension plan assets at December 31, 2011 and 2010, follows:
 
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

 
Total
 
Quoted prices
in active
markets for
identical assets
(Level 1)
 
Other
observable
inputs
(Level 2)
 
Unobservable
inputs
(Level 3)
2010
 
 
 
 
 
 
 
Common collective trusts
 
 
 
 
 
 
 
Non-United States equity and global equities
$
965

 
$

 
$
965

 
$

United States equity
577

 

 
577

 

Fixed income
241

 

 
241

 

Long duration funds
91

 

 
91

 

Fixed income securities
230

 

 
230

 

United States treasuries
101

 
101

 

 

Real estate
81

 
81

 

 

Equity securities
78

 
78

 

 

Cash equivalents
77

 
10

 
67

 

Registered investment companies
32

 
32

 

 

Other
36

 
2

 

 
34

Total pension plan assets
$
2,509

 
$
304

 
$
2,171

 
$
34

Fair value of other postretirement benefits plan assets
A summary of the fair value of other postretirement benefits plan assets at December 31, 2011, follows:
 
Total
 
Quoted prices
in active
markets for
identical assets
(Level 1)
 
Other
observable
inputs
(Level 2)
 
Unobservable
inputs
(Level 3)
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 Company has various defined contribution benefit plans, primarily consisting of the Eaton Savings Plan in the United States. The total contributions related to these plans are charged to expense and were as follows:
2011
$
65

2010
33

2009
25