Equity

3 Months Ended

Mar. 31, 2012

Stockholders' Equity Note [Abstract]

EQUITY

EQUITY

The changes in Shareholders’ equity follow:

	Eaton shareholders’ equity			Noncontrolling interests			Total equity
Balance at December 31, 2011	$	7,469		$	23		$	7,492
Net income	311			—			311
Other comprehensive income	226			—			226
Cash dividends paid	(127		)	(2		)	(129		)
Issuance of shares under equity-based compensation plans-net	54			—			54
Balance at March 31, 2012	$	7,933		$	21		$	7,954

Net Income per Common Share

A summary of the calculation of net income per common share attributable to common shareholders follows:

	Three months ended March 31
(Shares in millions)	2012		2011
Net income attributable to Eaton common shareholders	$	311	$	287
Weighted-average number of common shares outstanding-diluted	339.8		345.7
Less dilutive effect of stock options and restricted stock awards	4.4		5.6
Weighted-average number of common shares outstanding-basic	335.4		340.1
Net income per common share
Diluted	$	0.91	$	0.83
Basic	0.93		0.84

For the first quarter of 2012 and 2011, 0.9 million and 0.1 million stock options, respectively, were excluded from the calculation of diluted net income per common share because the exercise price of the options exceeded the average market price of the common shares during the period and their effect, accordingly, would have been antidilutive.