EQUITY The changes in Shareholders’ equity follow: | | | | | | | | | | | | | | Eaton shareholders’ equity | | Noncontrolling interests | | Total equity | Balance at December 31, 2012 | $ | 15,113 |
| | $ | 42 |
| | $ | 15,155 |
| Net income | 872 |
| | 5 |
| | 877 |
| Other comprehensive loss | (306 | ) | | — |
| | (306 | ) | Cash dividends paid | (397 | ) | | (4 | ) | | (401 | ) | Issuance of shares under equity-based compensation plans - net | 106 |
| | — |
| | 106 |
| Balance at June 30, 2013 | $ | 15,388 |
| | $ | 43 |
| | $ | 15,431 |
|
The changes in Accumulated other comprehensive loss follow: | | | | | | | | | | | | | | | | | | Currency translation and related hedging instruments | | Pensions and other postretirement benefits | | Cash flow hedges | | Total | Balance at December 31, 2012 | $ | (367 | ) | | $ | (1,599 | ) | | $ | 2 |
| | $ | (1,964 | ) | Other comprehensive (loss) income before reclassifications | (390 | ) | | 23 |
| | (6 | ) | | (373 | ) | Amounts reclassified from Accumulated other comprehensive (loss) income | — |
| | 66 |
| | 1 |
| | 67 |
| Net current-period other comprehensive (loss) income | (390 | ) | | 89 |
| | (5 | ) | | (306 | ) | Balance at June 30, 2013 | $ | (757 | ) | | $ | (1,510 | ) | | $ | (3 | ) | | $ | (2,270 | ) |
The reclassifications out of Accumulated other comprehensive loss follow: | | | | | | | | | | Six months ended
June 30, 2013 | | Consolidated Statements of Income classification | Amortization of defined benefit pension items | | | | | Actuarial loss | | $ | (103 | ) | | 1 | | | (103 | ) | | | Tax benefit | | 37 |
| | | Total, net of tax | | (66 | ) | | | | | | | | Gains and losses on cash flow hedges | | | | | Floating-to-fixed interest rate swaps | | (1 | ) | | Interest expense - net | Currency exchange contracts | | 1 |
| | Cost of products sold | Commodity contracts | | (1 | ) | | Cost of products sold | | | (1 | ) | | | Tax expense | | — |
| | | Total, net of tax | | (1 | ) | | | | | | | | Total reclassifications for the period | | $ | (67 | ) | | |
1 These components of Accumulated other comprehensive loss are included in the computation of net periodic pension cost. See Note 6 for additional information about defined benefit pension items. Net Income per Ordinary Share A summary of the calculation of net income per ordinary share attributable to shareholders follows: | | | | | | | | | | | | | | | | | | Three months ended
June 30 | | Six months ended
June 30 | (Shares in millions) | 2013 | | 2012 | | 2013 | | 2012 | Net income attributable to Eaton ordinary shareholders | $ | 494 |
| | $ | 382 |
| | $ | 872 |
| | $ | 693 |
| | | | | | | | | Weighted-average number of ordinary shares outstanding - diluted | 476.3 |
| | 339.5 |
| | 475.7 |
| | 339.6 |
| Less dilutive effect of equity-based compensation | 2.9 |
| | 2.5 |
| | 3.1 |
| | 3.4 |
| Weighted-average number of ordinary shares outstanding - basic | 473.4 |
| | 337.0 |
| | 472.6 |
| | 336.2 |
| | | | | | | | | Net income per ordinary share | | | | | | | | Diluted | $ | 1.04 |
| | $ | 1.12 |
| | $ | 1.83 |
| | $ | 2.04 |
| Basic | 1.04 |
| | 1.13 |
| | 1.84 |
| | 2.06 |
|
For the second quarter and the first six months of 2013, 0.2 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. For the second quarter and the first six months of 2012, 2.4 million and 1.7 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. |