Equity (Tables)

9 Months Ended

Sep. 30, 2012

Stockholders' Equity Note [Abstract]

Change in Shareholders' 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	1,038			2			1,040
Other comprehensive income	156			—			156
Cash dividends paid and accrued	(512		)	(3		)	(515		)
Issuance of shares under equity-based compensation plans-net	69			—			69
Balance at September 30, 2012	$	8,220		$	22		$	8,242

Calculation of net income per common share attributable to common shareholders

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

	Three months ended September 30				Nine months ended September 30
(Shares in millions)	2012		2011		2012		2011
Net income attributable to Eaton common shareholders	$	345	$	365	$	1,038	$	988
Weighted-average number of common shares outstanding-diluted	339.8		341.9		339.7		344.4
Less dilutive effect of stock options and restricted stock awards	2.2		3.8		3.0		4.7
Weighted-average number of common shares outstanding-basic	337.6		338.1		336.7		339.7
Net income per common share
Diluted	$	1.02	$	1.07	$	3.05	$	2.86
Basic	1.02		1.07		3.08		2.90