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Retirement Benefits Plans (Tables)
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12 Months Ended |
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Dec. 31, 2013
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| Retirement Benefit Plans (Tables) [Abstract] |
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| Obligations and funded status |
Obligations and Funded Status | | | | | | | | | | | | | | | | | | | | | | | | | | United States pension liabilities | | Non-United States pension liabilities | | Other postretirement liabilities | | 2013 | | 2012 | | 2013 | | 2012 | | 2013 | | 2012 | Funded status | | | | | | | | | | | | Fair value of plan assets | $ | 2,940 |
| | $ | 2,607 |
| | $ | 1,432 |
| | $ | 1,248 |
| | $ | 138 |
| | $ | 146 |
| Benefit obligations | (3,625 | ) | | (3,817 | ) | | (2,127 | ) | | (2,017 | ) | | (867 | ) | | (950 | ) | Funded status | $ | (685 | ) | | $ | (1,210 | ) | | $ | (695 | ) | | $ | (769 | ) | | $ | (729 | ) | | $ | (804 | ) | | | | | | | | | | | | | Amounts recognized in the Consolidated Balance Sheets | | | | | | | | | | | | Non-current assets | $ | 44 |
| | $ | — |
| | $ | 86 |
| | $ | 72 |
| | $ | — |
| | $ | — |
| Current liabilities | (15 | ) | | (15 | ) | | (30 | ) | | (33 | ) | | (61 | ) | | (62 | ) | Non-current liabilities | (714 | ) | | (1,195 | ) | | (751 | ) | | (808 | ) | | (668 | ) | | (742 | ) | Total | $ | (685 | ) | | $ | (1,210 | ) | | $ | (695 | ) | | $ | (769 | ) | | $ | (729 | ) | | $ | (804 | ) | | | | | | | | | | | | | Amounts recognized in Accumulated other comprehensive loss (pretax) | | | | | | | | | | | | Net actuarial loss | $ | 1,051 |
| | $ | 1,618 |
| | $ | 515 |
| | $ | 550 |
| | $ | 190 |
| | $ | 269 |
| Prior service cost (credit) | 3 |
| | 1 |
| | 13 |
| | 9 |
| | (6 | ) | | (7 | ) | Other | — |
| | 2 |
| | — |
| | — |
| | — |
| | — |
| Total | $ | 1,054 |
| | $ | 1,621 |
| | $ | 528 |
| | $ | 559 |
| | $ | 184 |
| | $ | 262 |
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| Change in benefit obligations |
Change in Benefit Obligations | | | | | | | | | | | | | | | | | | | | | | | | | | United States pension liabilities | | Non-United States pension liabilities | | Other postretirement liabilities | | 2013 | | 2012 | | 2013 | | 2012 | | 2013 | | 2012 | Balance at January 1 | $ | 3,817 |
| | $ | 2,899 |
| | $ | 2,017 |
| | $ | 1,505 |
| | $ | 950 |
| | $ | 853 |
| Service cost | 128 |
| | 115 |
| | 62 |
| | 50 |
| | 20 |
| | 17 |
| Interest cost | 147 |
| | 134 |
| | 80 |
| | 77 |
| | 35 |
| | 38 |
| Actuarial (gain) loss | (223 | ) | | 264 |
| | 21 |
| | 196 |
| | (54 | ) | | 34 |
| Gross benefits paid | (246 | ) | | (132 | ) | | (90 | ) | | (78 | ) | | (103 | ) | | (94 | ) | Currency translation | — |
| | — |
| | 36 |
| | 54 |
| | (2 | ) | | — |
| Acquisitions | — |
| | 536 |
| | — |
| | 212 |
| | — |
| | 74 |
| Other | 2 |
| | 1 |
| | 1 |
| | 1 |
| | 21 |
| | 28 |
| Balance at December 31 | $ | 3,625 |
| | $ | 3,817 |
| | $ | 2,127 |
| | $ | 2,017 |
| | $ | 867 |
| | $ | 950 |
| | | | | | | | | | | | | Accumulated benefit obligation | $ | 3,458 |
| | $ | 3,639 |
| | $ | 2,003 |
| | $ | 1,885 |
| | | | |
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| Change in plan assets |
Change in Plan Assets | | | | | | | | | | | | | | | | | | | | | | | | | | United States pension liabilities | | Non-United States pension liabilities | | Other postretirement liabilities | | 2013 | | 2012 | | 2013 | | 2012 | | 2013 | | 2012 | Balance at January 1 | $ | 2,607 |
| | $ | 1,664 |
| | $ | 1,248 |
| | $ | 989 |
| | $ | 146 |
| | $ | 156 |
| Actual return on plan assets | 383 |
| | 293 |
| | 118 |
| | 86 |
| | 15 |
| | 13 |
| Employer contributions | 196 |
| | 311 |
| | 145 |
| | 102 |
| | 59 |
| | 43 |
| Gross benefits paid | (246 | ) | | (132 | ) | | (90 | ) | | (78 | ) | | (103 | ) | | (94 | ) | Currency translation | — |
| | — |
| | 15 |
| | 39 |
| | — |
| | — |
| Acquisitions | — |
| | 471 |
| | — |
| | 128 |
| | — |
| | — |
| Other | — |
| | — |
| | (4 | ) | | (18 | ) | | 21 |
| | 28 |
| Balance at December 31 | $ | 2,940 |
| | $ | 2,607 |
| | $ | 1,432 |
| | $ | 1,248 |
| | $ | 138 |
| | $ | 146 |
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| 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 | | 2013 | | 2012 | | 2013 | | 2012 | Projected benefit obligation | $ | 3,166 |
| | $ | 3,817 |
| | $ | 1,411 |
| | $ | 1,412 |
| Accumulated benefit obligation | 2,999 |
| | 3,639 |
| | 1,349 |
| | 1,307 |
| Fair value of plan assets | 2,437 |
| | 2,607 |
| | 635 |
| | 657 |
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| 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 | | 2013 | | 2012 | | 2013 | | 2012 | | 2013 | | 2012 | Balance at January 1 | $ | 1,621 |
| | $ | 1,602 |
| | $ | 559 |
| | $ | 358 |
| | $ | 262 |
| | $ | 248 |
| Prior service cost arising during the year | 2 |
| | 1 |
| | 4 |
| | — |
| | — |
| | — |
| Net (gain) loss arising during the year | (381 | ) | | 154 |
| | (12 | ) | | 205 |
| | (63 | ) | | 27 |
| Currency translation | — |
| | — |
| | 6 |
| | 15 |
| | (1 | ) | | — |
| Less amounts included in expense during the year | (186 | ) | | (138 | ) | | (29 | ) | | (19 | ) | | (14 | ) | | (13 | ) | Other | (2 | ) | | 2 |
| | — |
| | — |
| | — |
| | — |
| Net change for the year | (567 | ) | | 19 |
| | (31 | ) | | 201 |
| | (78 | ) | | 14 |
| Balance at December 31 | $ | 1,054 |
| | $ | 1,621 |
| | $ | 528 |
| | $ | 559 |
| | $ | 184 |
| | $ | 262 |
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| Benefits expense |
Benefits Expense | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | United States pension benefit expense | | Non-United States pension benefit expense | | Other postretirement benefits expense | | 2013 | | 2012 | | 2011 | | 2013 | | 2012 | | 2011 | | 2013 | | 2012 | | 2011 | Service cost | $ | 128 |
| | $ | 115 |
| | $ | 93 |
| | $ | 62 |
| | $ | 50 |
| | $ | 48 |
| | $ | 20 |
| | $ | 17 |
| | $ | 15 |
| Interest cost | 147 |
| | 134 |
| | 132 |
| | 80 |
| | 77 |
| | 78 |
| | 35 |
| | 38 |
| | 41 |
| Expected return on plan assets | (226 | ) | | (183 | ) | | (164 | ) | | (85 | ) | | (77 | ) | | (70 | ) | | (6 | ) | | (6 | ) | | — |
| Amortization | 133 |
| | 118 |
| | 75 |
| | 27 |
| | 15 |
| | 13 |
| | 14 |
| | 13 |
| | 12 |
| | 182 |
| | 184 |
| | 136 |
| | 84 |
| | 65 |
| | 69 |
| | 63 |
| | 62 |
| | 68 |
| Curtailment loss | — |
| | — |
| | — |
| | 1 |
| | 1 |
| | 1 |
| | — |
| | — |
| | — |
| Settlement loss | 53 |
| | 20 |
| | 17 |
| | 1 |
| | 3 |
| | 4 |
| | — |
| | — |
| | — |
| Total expense | $ | 235 |
| | $ | 204 |
| | $ | 153 |
| | $ | 86 |
| | $ | 69 |
| | $ | 74 |
| | $ | 63 |
| | $ | 62 |
| | $ | 68 |
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| 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 2014 follow: | | | | | | | | | | | | | | United States pension liabilities | | Non-United States pension liabilities | | Other postretirement liabilities | Actuarial loss | $ | 155 |
| | $ | 26 |
| | $ | 9 |
| Prior service cost (credit) | — |
| | 1 |
| | (2 | ) | Total | $ | 155 |
| | $ | 27 |
| | $ | 7 |
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| Assumptions used to determine other postretirement obligations and expense |
Pension Plans | | | | | | | | | | | | | | | | | | | | United States pension plans | | Non-United States pension plans | | 2013 | | 2012 | | 2011 | | 2013 | | 2012 | | 2011 | Assumptions used to determine benefit obligation at year-end | | | | | | | | | | | | Discount rate | 4.67 | % | | 3.97 | % | | 4.70 | % | | 4.20 | % | | 4.17 | % | | 5.12 | % | Rate of compensation increase | 3.16 | % | | 3.16 | % | | 3.15 | % | | 3.12 | % | | 3.09 | % | | 3.62 | % | | | | | | | | | | | | | Assumptions used to determine expense | | | | | | | | | | | | Discount rate | 3.97 | % | | 4.70 | % | | 5.50 | % | | 4.17 | % | | 5.12 | % | | 5.40 | % | Expected long-term return on plan assets | 8.45 | % | | 8.50 | % | | 8.50 | % | | 6.92 | % | | 7.10 | % | | 7.17 | % | Rate of compensation increase | 3.16 | % | | 3.15 | % | | 3.61 | % | | 3.09 | % | | 3.62 | % | | 3.63 | % |
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| 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 | | 2013 | | 2012 | | 2011 | Assumptions used to determine benefit obligation at year-end | | | | | | Discount rate | 4.48 | % | | 3.79 | % | | 4.60 | % | Health care cost trend rate assumed for next year | 6.64 | % | | 6.96 | % | | 7.60 | % | Ultimate health care cost trend rate | 4.77 | % | | 4.53 | % | | 4.50 | % | Year ultimate health care cost trend rate is achieved | 2023 |
| | 2022 |
| | 2020 |
| | | | | | | Assumptions used to determine expense | | | | | | Discount rate | 3.79 | % | | 4.60 | % | | 5.20 | % | Initial health care cost trend rate | 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 |
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| 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 | 21 |
| | (19 | ) |
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| Employer contributions to pension plans |
Contributions to pension plans that Eaton expects to make in 2014, and made in 2013, 2012 and 2011, follow: | | | | | | | | | | | | | | | | | | 2014 | | 2013 | | 2012 | | 2011 | United States plans | $ | 254 |
| | $ | 196 |
| | $ | 311 |
| | $ | 264 |
| Non-United States plans | 108 |
| | 145 |
| | 102 |
| | 108 |
| Total contributions | $ | 362 |
| | $ | 341 |
| | $ | 413 |
| | $ | 372 |
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| 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 | 2014 | $ | 314 |
| | $ | 91 |
| | $ | 93 |
| | $ | (6 | ) | 2015 | 256 |
| | 92 |
| | 86 |
| | (6 | ) | 2016 | 273 |
| | 94 |
| | 82 |
| | (6 | ) | 2017 | 277 |
| | 99 |
| | 78 |
| | (5 | ) | 2018 | 283 |
| | 101 |
| | 74 |
| | (4 | ) | 2019 - 2023 | 1,499 |
| | 545 |
| | 316 |
| | (13 | ) |
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| Fair value of pension plan assets |
A summary of the fair value of pension plan assets at December 31, 2013 and 2012, follows: | | | | | | | | | | | | | | | | | | Total | | Quoted prices in active markets for identical assets (Level 1) | | Other observable inputs (Level 2) | | Unobservable inputs (Level 3) | 2013 | | | | | | | | Common collective trusts | | | | | | | | Non-United States equity and global equities | $ | 1,453 |
| | $ | — |
| | $ | 1,453 |
| | $ | — |
| United States equity | 1,153 |
| | — |
| | 1,153 |
| | — |
| Fixed income | 609 |
| | — |
| | 609 |
| | — |
| Long duration funds | 63 |
| | — |
| | 63 |
| | — |
| Exchange traded funds | 64 |
| | — |
| | 64 |
| | — |
| Fixed income securities | 274 |
| | — |
| | 274 |
| | — |
| United States treasuries | 63 |
| | 63 |
| | — |
| | — |
| Real estate securities | 220 |
| | 214 |
| | — |
| | 6 |
| Equity securities | 141 |
| | 141 |
| | — |
| | — |
| Cash equivalents | 187 |
| | 6 |
| | 181 |
| | — |
| Exchange traded funds | 47 |
| | 47 |
| | — |
| | — |
| Other | 98 |
| | — |
| | 4 |
| | 94 |
| Total pension plan assets | $ | 4,372 |
| | $ | 471 |
| | $ | 3,801 |
| | $ | 100 |
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| | | | | | | | | | | | | | | | | | 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 securities | 124 |
| | 119 |
| | — |
| | 5 |
| Equity securities | 104 |
| | 104 |
| | — |
| | — |
| Cash equivalents | 140 |
| | 7 |
| | 133 |
| | — |
| Exchange traded funds | 40 |
| | 40 |
| | — |
| | — |
| Other | 40 |
| | 3 |
| | 1 |
| | 36 |
| Total pension plan assets | $ | 3,855 |
| | $ | 416 |
| | $ | 3,398 |
| | $ | 41 |
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| Fair value of other postretirement benefits plan assets |
A summary of the fair value of other postretirement benefits plan assets at December 31, 2013 and 2012, follows: | | | | | | | | | | | | | | | | | | Total | | Quoted prices in active markets for identical assets (Level 1) | | Other observable inputs (Level 2) | | Unobservable inputs (Level 3) | 2013 | | | | | | | | Common collective trusts | | | | | | | | Global equities | $ | 70 |
| | $ | — |
| | $ | 70 |
| | $ | — |
| Fixed income securities | 29 |
| | — |
| | 29 |
| | — |
| United States treasuries | 38 |
| | 38 |
| | — |
| | — |
| Cash equivalents | 1 |
| | 1 |
| | — |
| | — |
| Total other postretirement benefits plan assets | $ | 138 |
| | $ | 39 |
| | $ | 99 |
| | $ | — |
|
| | | | | | | | | | | | | | | | | 2012 | | | | | | | | Common collective trusts | | | | | | | | Global equities | $ | 75 |
| | $ | — |
| | $ | 75 |
| | $ | — |
| Fixed income securities | 29 |
| | — |
| | 29 |
| | — |
| United States treasuries | 38 |
| | 38 |
| | — |
| | — |
| Cash equivalents | 4 |
| | 4 |
| | — |
| | — |
| Total other postretirement benefits plan assets | $ | 146 |
| | $ | 42 |
| | $ | 104 |
| | $ | — |
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| 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: |