ACQUISITION INTEGRATION CHARGES

Eaton incurs charges related to the integration of acquired businesses. A summary of these charges follows:



	Three months ended September 30				Nine months ended September 30
	2012		2011		2012		2011
Business segment
Electrical Americas	$	1	$	3	$	4	$	7
Electrical Rest of World	1		—		5		1
Hydraulics	5		1		9		1
Total business segment integration charges before income taxes	7		4		18		9
Corporate	20		—		28		—
Total integration charges before income taxes	$	27	$	4	$	46	$	9
After-tax integration charges	$	18	$	2	$	30	$	6
Per common share	$	0.05	$	0.01	$	0.09	$	0.02

Business segment charges for the third quarter of 2012 were related primarily to Internormen Technology Group, Jeil Hydraulics, Polimer Kaucuk Sanayi ve Pazarlama (SEL) and E. Begerow GmbH & Co. KG. Business segment charges for the first nine months of 2012 were related primarily to The Moeller Group, Internormen Technology Group, E. Begerow GmbH & Co. KG and Tuthill Coupling Group. Business segment charges in 2011 were related primarily to CopperLogic, Wright Line Holding and EMC Engineers. These charges were included in Cost of products sold or Selling and administrative expense, as appropriate. In Note 13, Business Segment Information, the charges reduced Operating profit of the related business segment.

Corporate charges in 2012 were related primarily to pre-acquisition transaction costs associated with the planned acquisition of Cooper. These charges were included in Selling and administrative expense and Interest expense-net. In Note 13, Business Segment Information, the charges were included in Interest expense-net and Other corporate expense-net. See Note 2 for additional information about business acquisitions.