GOODWILL

A summary of goodwill follows:



	September 30, 2012		December 31, 2011
Electrical Americas	$	2,058	$	2,043
Electrical Rest of World	986		981
Hydraulics	1,393		1,116
Aerospace	1,045		1,040
Truck	149		150
Automotive	207		207
Total goodwill	$	5,838	$	5,537

The increase in goodwill in 2012 was primarily due to businesses acquired during 2012. For additional information regarding acquired businesses, see Note 2.

Assessing Goodwill for Impairment

Goodwill is tested for impairment annually as of July 1 at the reporting unit level, which is equivalent to Eaton's operating segments. Impairment testing for 2012 was performed from a qualitative perspective by assessing certain trends and factors, including projected market outlook and growth rates, forecasted and actual sales and operating profit margins, discount rates, industry data and other relevant qualitative factors. These trends and factors were compared to and based on the assumptions used in the quantitative assessment performed in 2010. For 2012, the fair value of Eaton's reporting units continues to substantially exceed the respective carrying amount.