10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the quarterly period ended March 31, 2015

Commission file number 000-54863

EATON CORPORATION plc

(Exact name of registrant as specified in its charter)

Ireland	98-1059235
(State or other jurisdiction of incorporation or organization)	(IRS Employer Identification Number)
Eaton House, 30 Pembroke Road, Dublin 4, Ireland	-
(Address of principal executive offices)	(Zip Code)

+1 (440) 523-5000

(Registrant's telephone number, including area code)

Not applicable

(Former name, former address and former fiscal year if changed since last report)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes þ No o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes þ No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer þ	Accelerated filer o	Non-accelerated filer o	Smaller reporting company o
		(Do not check if a smaller reporting company)

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes o No þ

There were 467.1 million Ordinary Shares outstanding as of March 31, 2015.

TABLE OF CONTENTS

EX-12

EX-31.1

EX-31.2

EX-32.1

EX-32.2

EX-101 INSTANCE DOCUMENT

EX-101 SCHEMA DOCUMENT

EX-101 CALCULATION LINKBASE DOCUMENT

EX-101 DEFINITION LINKBASE DOCUMENT

EX-101 LABELS LINKBASE DOCUMENT

EX-101 PRESENTATION LINKBASE DOCUMENT

PART I — FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS.

EATON CORPORATION plc

CONSOLIDATED STATEMENTS OF INCOME

	Three months ended March 31
(In millions except for per share data)	2015			2014
Net sales	$	5,223		$	5,492
Cost of products sold	3,593			3,858
Selling and administrative expense	915			962
Research and development expense	158			162
Interest expense - net	57			62
Other income - net	(5		)	(5		)
Income before income taxes	505			453
Income tax expense	38			12
Net income	467			441
Less net income for noncontrolling interests	(1		)	(2		)
Net income attributable to Eaton ordinary shareholders	$	466		$	439
Net income per ordinary share
Diluted	$	0.99		$	0.92
Basic	1.00			0.92
Weighted-average number of ordinary shares outstanding
Diluted	470.0			478.8
Basic	467.9			475.8
Cash dividends declared per ordinary share	$	0.55		$	0.49

The accompanying notes are an integral part of these condensed consolidated financial statements.

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EATON CORPORATION plc

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

	Three months ended March 31
(In millions)	2015			2014
Net income	$	467		$	441
Less net income for noncontrolling interests	(1		)	(2		)
Net income attributable to Eaton ordinary shareholders	466			439
Other comprehensive (loss) income, net of tax
Currency translation and related hedging instruments	(720		)	(47		)
Pensions and other postretirement benefits	86			50
Other comprehensive (loss) income attributable to Eaton    ordinary shareholders	(634		)	3
Total comprehensive (loss) income attributable to Eaton   ordinary shareholders	$	(168	)	$	442

The accompanying notes are an integral part of these condensed consolidated financial statements.

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EATON CORPORATION plc

CONDENSED CONSOLIDATED BALANCE SHEETS

(In millions)	March 31, 2015		December 31, 2014
Assets
Current assets
Cash	$	663	$	781
Short-term investments	139		245
Accounts receivable - net	3,733		3,667
Inventory	2,424		2,428
Deferred income taxes	576		593
Prepaid expenses and other current assets	405		386
Total current assets	7,940		8,100
Property, plant and equipment - net	3,634		3,750
Other noncurrent assets
Goodwill	13,548		13,893
Other intangible assets	6,317		6,556
Deferred income taxes	220		228
Other assets	1,037		1,002
Total assets	$	32,696	$	33,529
Liabilities and shareholders’ equity
Current liabilities
Short-term debt	$	267	$	2
Current portion of long-term debt	1,244		1,008
Accounts payable	1,969		1,940
Accrued compensation	282		420
Other current liabilities	1,904		1,985
Total current liabilities	5,666		5,355
Noncurrent liabilities
Long-term debt	7,829		8,024
Pension liabilities	1,530		1,812
Other postretirement benefits liabilities	506		513
Deferred income taxes	881		901
Other noncurrent liabilities	1,020		1,085
Total noncurrent liabilities	11,766		12,335
Shareholders’ equity
Eaton shareholders’ equity	15,210		15,786
Noncontrolling interests	54		53
Total equity	15,264		15,839
Total liabilities and equity	$	32,696	$	33,529

The accompanying notes are an integral part of these condensed consolidated financial statements.

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EATON CORPORATION plc

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

	Three months ended March 31
(In millions)	2015			2014
Operating activities
Net income	$	467		$	441
Adjustments to reconcile to net cash provided by operating activities
Depreciation and amortization	226			249
Deferred income taxes	14			(24		)
Pension and other postretirement benefits expense	76			99
Contributions to pension plans	(223		)	(272		)
Contributions to other postretirement benefits plans	(9		)	(12		)
Excess tax benefit from equity-based compensation	—			(20		)
Changes in working capital	(372		)	(370		)
Other - net	(102		)	(79		)
Net cash provided by operating activities	77			12
Investing activities
Cash paid for acquisitions of businesses, net of cash acquired	(38		)	—
Capital expenditures for property, plant and equipment	(105		)	(110		)
Sales of short-term investments - net	99			431
Proceeds from sale of businesses	—			3
Other - net	(9		)	(20		)
Net cash (used in) provided by investing activities	(53		)	304
Financing activities
Proceeds from borrowings	266			—
Payments on borrowings	(3		)	(257		)
Cash dividends paid	(251		)	(229		)
Exercise of employee stock options	33			23
Repurchase of shares	(170		)	—
Excess tax benefit from equity-based compensation	—			20
Other - net	(2		)	—
Net cash used in financing activities	(127		)	(443		)
Effect of currency on cash	(15		)	(4		)
Total decrease in cash	(118		)	(131		)
Cash at the beginning of the period	781			915
Cash at the end of the period	$	663		$	784

The accompanying notes are an integral part of these condensed consolidated financial statements.

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EATON CORPORATION plc

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Amounts are in millions unless indicated otherwise (per share data assume dilution).

Note 1. BASIS OF PRESENTATION

The accompanying unaudited condensed consolidated financial statements of Eaton Corporation plc (Eaton or the Company) have been prepared in accordance with generally accepted accounting principles for interim financial information, the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by United States generally accepted accounting principles (US GAAP) for complete financial statements. However, in the opinion of management, all adjustments (consisting of normal recurring accruals) have been made that are necessary for a fair presentation of the condensed consolidated financial statements for the interim periods.

This Form 10-Q should be read in conjunction with the consolidated financial statements and related notes included in Eaton’s 2014 Form 10-K. The interim period results are not necessarily indicative of the results to be expected for the full year. Management has evaluated subsequent events through the date this Form 10-Q was filed with the Securities Exchange Commission.

Certain prior year amounts have been reclassified to conform to the current year presentation.

Recently Issued Accounting Pronouncements

In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers (ASU 2014-09). This accounting standard supersedes all existing US GAAP revenue recognition guidance. Under ASU 2014-09, a company will recognize revenue when it transfers the control of promised goods or services to customers in an amount that reflects the consideration which the company expects to collect in exchange for those goods or services. ASU 2014-09 will require additional disclosures in the notes to the consolidated financial statements and is effective for annual and interim reporting periods beginning after December 15, 2016. In April 2015, the FASB proposed to defer the effective date of the new standard for one year. If the proposal is approved, then early adoption as of the original effective date would be permitted. Eaton is evaluating the impact of ASU 2014-09 and an estimate of the impact to the consolidated financial statements cannot be made at this time.

Note 2. ACQUISITION AND SALE OF BUSINESSES

Acquisition of UK Safety Technology Manufacturer Oxalis Group Ltd.

On January 12, 2015, Eaton acquired Oxalis Group Ltd. (Oxalis). Oxalis is a manufacturer of closed-circuit television camera stations, public address and general alarm systems and other electrical products for the hazardous area, marine and industrial communications markets. Oxalis is reported within the Electrical Systems and Services business segment.

Sale of Aerospace Power Distribution Management Solutions and Integrated Cockpit Solutions

On May 9, 2014, Eaton sold the Aerospace Power Distribution Management Solutions and Integrated Cockpit Solutions businesses to Safran for $270, which resulted in a pre-tax gain of $154.

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Note 3. ACQUISITION INTEGRATION CHARGES

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

	Three months ended March 31
	2015		2014
Acquisition integration charges
Electrical Products	$	6	$	29
Electrical Systems and Services	3		26
Hydraulics	1		4
Total business segments	10		59
Corporate	1		7
Total acquisition integration charges before income taxes	$	11	$	66
Total after income taxes	$	7	$	44
Per ordinary share - diluted	$	0.02	$	0.09

Business segment integration charges during the first three months of 2015 and 2014 were related primarily to the integration of Cooper Industries plc (Cooper) to gain efficiencies in selling, marketing, traditional back-office functions and manufacturing and distribution. These charges were included in Cost of products sold or Selling and administrative expense, as appropriate. In Business Segment Information the charges reduced Operating profit of the related business segment. See Note 13 for additional information about business segments.

Corporate integration charges in 2015 and 2014 were related to the acquisition of Cooper. These charges were included in Selling and administrative expense. In Business Segment Information the charges were included in Other corporate expense - net.

The Cooper integration initiatives are expected to continue throughout 2015.

Note 4. GOODWILL

A summary of goodwill follows:

	Electrical Products			Electrical Systems and Services			Hydraulics			Aerospace			Vehicle			Total
December 31, 2014	$	6,940		$	4,314		$	1,327		$	962		$	350		$	13,893
Additions	—			22			—			—			—			22
Translation adjustments	(206		)	(98		)	(51		)	(6		)	(6		)	(367		)
March 31, 2015	$	6,734		$	4,238		$	1,276		$	956		$	344		$	13,548

Note 5. RETIREMENT BENEFITS PLANS

The components of retirement benefits expense follow:

	United States pension benefit expense						Non-United States pension benefit expense						Other postretirement benefits expense
	Three months ended March 31
	2015			2014			2015			2014			2015			2014
Service cost	$	31		$	29		$	18		$	16		$	2		$	4
Interest cost	39			40			18			22			6			9
Expected return on plan assets	(66		)	(61		)	(25		)	(25		)	(1		)	(1		)
Amortization	30			23			10			7			—			2
	34			31			21			20			7			14
Settlement loss	14			34			—			—			—			—
Total expense	$	48		$	65		$	21		$	20		$	7		$	14

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Note 6. LEGAL CONTINGENCIES

Eaton is subject to a broad range of claims, administrative and legal proceedings such as lawsuits that relate to contractual allegations, tax audits, patent infringement, personal injuries, antitrust matters and employment-related matters. Eaton is also subject to asbestos claims from historic products which may have contained asbestos. Historically, significant insurance coverage has been available to cover costs associated with these claims. Although it is not possible to predict with certainty the outcome or cost of these matters, the Company believes they will not have a material adverse effect on the consolidated financial statements.

In 2010, a Brazilian court held that a judgment obtained by a Brazilian company, Raysul, against another Brazilian company, Saturnia, which was sold by Eaton in 2006, could be enforced against Eaton Ltda. and Eaton Holding S.à.r.l. This judgment is based on an alleged violation of an agency agreement between Raysul and Saturnia. At March 31, 2015, the Company has a total accrual of 85 Brazilian Reais related to this matter ($26 based on current exchange rates), comprised of 60 Brazilian Reais recognized in the fourth quarter of 2010 ($18 based on current exchange rates) with an additional 25 Brazilian Reais recognized through March 31, 2015 ($8 based on current exchange rates). In 2010, Eaton filed motions for clarification with the Brazilian court of appeals which were denied on April 6, 2011. Eaton filed appeals on various issues to the Superior Court of Justice in Brasilia. In April 2013, the Superior Court of Justice ruled in favor of Raysul. Additional motions for clarification have been filed with the Superior Court of Justice in Brasilia and were denied. On February 2, 2015, a final appeal was filed with the Superior Court of Justice in Brasilia. The Company expects that any sum it may be required to pay in connection with this matter will not exceed the amount of the recorded liability.

Note 7. INCOME TAXES

The effective income tax rate for the first quarter of 2015 was expense of 8% compared to expense of 3% for the first quarter of 2014. The increase in the effective income tax rate in first quarter of 2015 is primarily due to more income earned in higher tax jurisdictions including the United States.

Note 8. EQUITY

Eaton has an ordinary share repurchase program (2013 Program) that authorizes the repurchase of 40 million ordinary shares. During the first quarter of 2015, 2.4 million ordinary shares were repurchased under the 2013 Program in the open market at a total cost of $170.

The changes in Shareholders’ equity follow:

	Eaton shareholders’ equity			Noncontrolling interests		Total equity
Balance at December 31, 2014	$	15,786		$	53	$	15,839
Net income	466			1		467
Other comprehensive loss	(634		)	—		(634		)
Cash dividends paid and accrued	(257		)	—		(257		)
Issuance of shares under equity-based compensation plans - net	19			—		19
Repurchase of shares	(170		)	—		(170		)
Balance at March 31, 2015	$	15,210		$	54	$	15,264

The changes in Accumulated other comprehensive loss follow:

	Currency translation and related hedging instruments			Pensions and other postretirement benefits			Cash flow hedges			Total
Balance at December 31, 2014	$	(1,414	)	$	(1,485	)	$	—		$	(2,899	)
Other comprehensive (loss) income     before reclassifications	(720		)	51			1			(668		)
Amounts reclassified from Accumulated other    comprehensive loss	—			35			(1		)	34
Net current-period Other comprehensive    (loss) income	(720		)	86			—			(634		)
Balance at March 31, 2015	$	(2,134	)	$	(1,399	)	$	—		$	(3,533	)

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The reclassifications out of Accumulated other comprehensive loss follow:

	Three months ended March 31, 2015			Consolidated statements of income classification
Amortization of pensions and other postretirement benefits items
Actuarial loss and prior service cost	$	(54	)	1
Tax benefit	19
Total, net of tax	(35		)
Gains and (losses) on cash flow hedges
Currency exchange contracts	2			Cost of products sold
Tax expense	(1		)
Total, net of tax	1
Total reclassifications for the period	$	(34	)

¹ These components of Accumulated other comprehensive loss are included in the computation of net periodic benefit cost. See Note 5 for additional information about pension and other post retirement benefits items.

Net Income per Ordinary Share

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

	Three months ended March 31
(Shares in millions)	2015		2014
Net income attributable to Eaton ordinary shareholders	$	466	$	439
Weighted-average number of ordinary shares outstanding - diluted	470.0		478.8
Less dilutive effect of equity-based compensation	2.1		3.0
Weighted-average number of ordinary shares outstanding - basic	467.9		475.8
Net income per ordinary share
Diluted	$	0.99	$	0.92
Basic	1.00		0.92

For the first quarter 2015 and 2014, 0.9 million and 0.1 million stock options, respectively, were excluded from the calculation of diluted net income per ordinary share because the exercise price of the options exceeded the average market price of the ordinary shares during the period and their effect, accordingly, would have been antidilutive.

Note 9. EQUITY-BASED COMPENSATION

In February 2015, the Compensation and Organization Committee of the Board of Directors approved the grant of performance share units (PSUs) to certain employees that vest based on the satisfaction of a three-year service period and the achievement of certain performance metrics. The maximum number of ordinary shares that may be issued under this grant award is 911,050. The fair value of these PSUs is determined based on the closing market price of the Company’s ordinary shares at the date of grant. Equity-based compensation expense is recognized over the period an employee is required to provide service based on the number of PSUs for which achievement of the performance objectives is probable.

Note 10. FAIR VALUE MEASUREMENTS

Fair value is measured based on an exit price, representing the amount that would be received to sell an asset or paid to satisfy a liability in an orderly transaction between market participants. Fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions, a fair value hierarchy is established, which categorizes the inputs used in measuring fair value as follows: (Level 1) observable inputs such as quoted prices in active markets; (Level 2) inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and (Level 3) unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions.

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A summary of financial instruments recognized at fair value, and the fair value measurements used, follows:

	Total			Level 1		Level 2			Level 3
March 31, 2015
Cash	$	663		$	663	$	—		$	—
Short-term investments	139			139		—			—
Net derivative contracts	129			—		129			—
Long-term debt converted to floating interest rates by    interest rate swaps - net	(122		)	—		(122		)	—
December 31, 2014
Cash	$	781		$	781	$	—		$	—
Short-term investments	245			245		—			—
Net derivative contracts	70			—		70			—
Long-term debt converted to floating interest rates by    interest rate swaps - net	(74		)	—		(74		)	—

Eaton values its financial instruments using an industry standard market approach, in which prices and other relevant information is generated by market transactions involving identical or comparable assets or liabilities. No financial instruments were recognized using unobservable inputs.

Other Fair Value Measurements

Long-term debt and the current portion of long-term debt had a carrying value of $9,073 and fair value of $9,679 at March 31, 2015 compared to $9,032 and $9,509, respectively, at December 31, 2014. The fair value of Eaton's debt instruments were estimated using prevailing market interest rates on debt with similar creditworthiness, terms and maturities and are considered a Level 2 fair value measurement.

Note 11. DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES

In the normal course of business, Eaton is exposed to certain risks related to fluctuations in interest rates, currency exchange rates and commodity prices. The Company uses various derivative and non-derivative financial instruments, primarily interest rate swaps, currency forward exchange contracts, currency swaps and, to a lesser extent, commodity contracts, to manage risks from these market fluctuations. The instruments used by Eaton are straightforward, non-leveraged instruments. The counterparties to these instruments are financial institutions with strong credit ratings. Eaton maintains control over the size of positions entered into with any one counterparty and regularly monitors the credit rating of these institutions. Such instruments are not purchased and sold for trading purposes.

Derivative financial instruments are accounted for at fair value and recognized as assets or liabilities in the Condensed Consolidated Balance Sheets. Accounting for the gain or loss resulting from the change in the fair value of the derivative financial instrument depends on whether it has been designated, and is effective, as part of a hedging relationship and, if so, as to the nature of the hedging activity. Eaton formally documents all relationships between derivative financial instruments accounted for as designated hedges and the hedged item, as well as its risk-management objective and strategy for undertaking the hedge transaction. This process includes linking derivative financial instruments to a recognized asset or liability, specific firm commitment, forecasted transaction, or net investment in a foreign operation. These financial instruments can be designated as:

• Hedges of the change in the fair value of a recognized fixed-rate asset or liability, or the firm commitment to acquire such an asset or liability (a fair value hedge); for these hedges, the gain or loss from the derivative financial instrument, as well as the offsetting loss or gain on the hedged item attributable to the hedged risk, are recognized in income during the period of change in fair value.

• Hedges of the variable cash flows of a recognized variable-rate asset or liability, or the forecasted acquisition of such an asset or liability (a cash flow hedge); for these hedges, the effective portion of the gain or loss from the derivative financial instrument is recognized in Accumulated other comprehensive loss and reclassified to income in the same period when the gain or loss on the hedged item is included in income.

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• Hedges of the currency exposure related to a net investment in a foreign operation (a net investment hedge); for these hedges, the effective portion of the gain or loss from the derivative financial instrument is recognized in Accumulated other comprehensive loss and reclassified to income in the same period when the gain or loss related to the net investment in the foreign operation is included in income.

The gain or loss from a derivative financial instrument designated as a hedge that is effective is classified in the same line of the Consolidated Statements of Income as the offsetting loss or gain on the hedged item. The change in fair value of a derivative financial instrument that is not effective as a hedge is immediately recognized in income.

For derivatives that are not designated as a hedge, any gain or loss is immediately recognized in income. The majority of derivatives used in this manner relate to risks resulting from assets or liabilities denominated in a foreign currency and certain commodity contracts that arise in the normal course of business. Gains and losses associated with commodity hedge contracts are classified in Cost of products sold.

Eaton uses certain of its debt denominated in foreign currency to hedge portions of its net investments in foreign operations against foreign currency exposure (net investment hedges). Foreign currency denominated debt designated on an after-tax basis as non-derivative net investment hedging instruments was $83 and $84 at March 31, 2015 and December 31, 2014, respectively.

Derivative Financial Statement Impacts

The fair value of derivative financial instruments recognized in the Condensed Consolidated Balance Sheets follows:

	Notional amount		Other  current assets		Other noncurrent assets		Other current liabilities		Other noncurrent liabilities		Type of hedge	Term
March 31, 2015
Derivatives designated as hedges
Fixed-to-floating interest rate swaps	$	3,440	$	—	$	122	$	—	$	—	Fair value	2 to 20 years
Currency exchange contracts	412		16		—		8		8		Cash flow	1 to 36 months
Commodity contracts	1		—		—		—		—		Cash flow	1 to 12 months
Total			$	16	$	122	$	8	$	8
Derivatives not designated as  hedges
Currency exchange contracts	$	4,313	$	52			$	45				1 to 12 months
Total			$	52			$	45
December 31, 2014
Derivatives designated as hedges
Fixed-to-floating interest rate swaps	$	3,440	$	—	$	84	$	—	$	10	Fair value	2 to 19 years
Currency exchange contracts	432		8		1		5		3		Cash flow	1 to 36 months
Commodity contracts	1		—		—		—		—		Cash flow	1 to 12 months
Total			$	8	$	85	$	5	$	13
Derivatives not designated as  hedges
Currency exchange contracts	$	4,447	$	47			$	52				1 to 12 months
Total			$	47			$	52

The currency exchange contracts shown in the table above as derivatives not designated as hedges are primarily contracts entered into to manage currency volatility or exposure on intercompany sales and loans. While Eaton does not elect hedge accounting treatment for these derivatives, Eaton targets managing 100% of the intercompany balance sheet exposure to minimize the effect of currency volatility related to the movement of goods and services in the normal course of its operations. This activity represents the great majority of these currency exchange contracts.

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Amounts recognized in Accumulated other comprehensive loss follow:

					Location of gain
	Gain recognized in				reclassified from	Gain reclassified
	other comprehensive				Accumulated other	from Accumulated other
	(loss) income				comprehensive loss	comprehensive loss
	Three months ended March 31					Three months ended March 31
	2015		2014			2015		2014
Derivatives designated as cash  flow hedges
Currency exchange contracts	$	2	$	2	Cost of products sold	$	2	$	2

Amounts recognized in net income follow:

	Three months ended March 31
	2015			2014
Derivatives designated as fair value hedges
Fixed-to-floating interest rate swaps	$	48		$	29
Related long-term debt converted to floating interest    rates by interest rate swaps	(48		)	(29		)
	$	—		$	—

Gains and losses described above were recognized in Interest expense - net.

Note 12. INVENTORY

The components of inventory follow:

	March 31, 2015			December 31, 2014
Raw materials	$	1,088		$	924
Work-in-process	295			422
Finished goods	1,161			1,201
Inventory at FIFO	2,544			2,547
Excess of FIFO over LIFO cost	(120		)	(119		)
Total inventory	$	2,424		$	2,428

Note 13. BUSINESS SEGMENT INFORMATION

Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated on a regular basis by the chief operating decision maker, or decision making group, in deciding how to allocate resources to an individual segment and in assessing performance. Eaton’s operating segments are Electrical Products, Electrical Systems and Services, Hydraulics, Aerospace and Vehicle. Operating profit includes the operating profit from intersegment sales. For additional information regarding Eaton’s business segments, see Note 14 to the Consolidated Financial Statements contained in the 2014 Form 10-K.

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	Three months ended March 31
	2015			2014
Net sales
Electrical Products	$	1,691		$	1,726
Electrical Systems and Services	1,448			1,524
Hydraulics	665			782
Aerospace	464			464
Vehicle	955			996
Total net sales	$	5,223		$	5,492
Segment operating profit
Electrical Products	$	260		$	250
Electrical Systems and Services	186			169
Hydraulics	66			108
Aerospace	77			62
Vehicle	164			151
Total segment operating profit	753			740
Corporate
Amortization of intangible assets	(102		)	(110		)
Interest expense - net	(57		)	(62		)
Pension and other postretirement benefits expense	(28		)	(51		)
Other corporate expense - net	(61		)	(64		)
Income before income taxes	505			453
Income tax expense	38			12
Net income	467			441
Less net income for noncontrolling interests	(1		)	(2		)
Net income attributable to Eaton ordinary shareholders	$	466		$	439

13

Note 14. CONDENSED CONSOLIDATING FINANCIAL STATEMENTS

On November 20, 2012, Eaton Corporation issued senior notes totaling $4,900 to finance part of the cash portion of the acquisition of Cooper. On November 14, 2013, the senior notes were exchanged for senior notes registered under the Securities Act of 1933 (the Senior Notes). Eaton and certain other of Eaton's 100% owned direct and indirect subsidiaries (the Guarantors) fully and unconditionally guaranteed (subject, in case of the Guarantors, other than Eaton, to customary release provisions as described below), on a joint and several basis, the Senior Notes. The following condensed consolidating financial statements are included so that separate financial statements of Eaton, Eaton Corporation and each of the Guarantors are not required to be filed with the Securities and Exchange Commission. The consolidating adjustments primarily relate to eliminations of investments in subsidiaries and intercompany balances and transactions. The condensed consolidating financial statements present investments in subsidiaries using the equity method of accounting.

The guarantee of a Guarantor that is not a parent of the issuer will be automatically and unconditionally released and discharged in the event of any sale of the Guarantor or of all or substantially all of its assets, or in connection with the release or termination of the Guarantor as a guarantor under all other U.S. debt securities or U.S. syndicated credit facilities, subject to limitations set forth in the indenture. The guarantee of a Guarantor that is a direct or indirect parent of the issuer will only be automatically and unconditionally released and discharged in connection with the release or termination of such Guarantor as a guarantor under all other debt securities or syndicated credit facilities (in both cases, U.S. or otherwise), subject to limitations set forth in the indenture.

During the third quarter of 2014, the Company undertook certain steps to restructure ownership of various subsidiaries. The transactions were entirely among wholly-owned subsidiaries under the common control of Eaton. This restructuring has been reflected as of the beginning of the earliest period presented below.

CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME FOR THE THREE MONTHS ENDED MARCH 31, 2015
	Eaton Corporation plc			Eaton Corporation			Guarantors			Other subsidiaries			Consolidating adjustments			Total
Net sales	$	—		$	1,702		$	1,696		$	3,116		$	(1,291	)	$	5,223
Cost of products sold	—			1,310			1,295			2,277			(1,289		)	3,593
Selling and administrative expense	2			377			176			360			—			915
Research and development expense	—			71			45			42			—			158
Interest expense (income) - net	—			54			6			(5		)	2			57
Other (income) loss - net	—			(5		)	(1		)	1			—			(5		)
Equity in earnings of    subsidiaries, net of tax	(545		)	(211		)	(713		)	(129		)	1,598			—
Intercompany expense (income) - net	77			(41		)	271			(307		)	—			—
Income before income taxes	466			147			617			877			(1,602		)	505
Income tax (benefit) expense	—			(22		)	21			41			(2		)	38
Net income	466			169			596			836			(1,600		)	467
Less net income for    noncontrolling interests	—			—			—			(1		)	—			(1		)
Net income attributable to    Eaton ordinary shareholders	$	466		$	169		$	596		$	835		$	(1,600	)	$	466
Other comprehensive (loss) income	$	(634	)	$	46		$	(620	)	$	(746	)	$	1,320		$	(634	)
Total comprehensive (loss) income attributable to Eaton   ordinary shareholders	$	(168	)	$	215		$	(24	)	$	89		$	(280	)	$	(168	)

14

CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME FOR THE THREE MONTHS ENDED MARCH 31, 2014
	Eaton Corporation plc			Eaton Corporation			Guarantors			Other subsidiaries			Consolidating adjustments			Total
Net sales	$	—		$	1,667		$	1,641		$	3,291		$	(1,107	)	$	5,492
Cost of products sold	—			1,342			1,218			2,392			(1,094		)	3,858
Selling and administrative expense	2			361			200			399			—			962
Research and development expense	—			60			50			52			—			162
Interest expense (income) - net	—			59			7			(6		)	2			62
Other expense (income) - net	—			5			3			(13		)	—			(5		)
Equity in (earnings) loss of    subsidiaries, net of tax	(469		)	7			(491		)	45			908			—
Intercompany expense (income) - net	28			(70		)	132			(90		)	—			—
Income (loss) before income taxes	439			(97		)	522			512			(923		)	453
Income tax (benefit) expense	—			(14		)	(7		)	38			(5		)	12
Net income (loss)	439			(83		)	529			474			(918		)	441
Less net income for    noncontrolling interests	—			—			—			(2		)	—			(2		)
Net income (loss) attributable to    Eaton ordinary shareholders	$	439		$	(83	)	$	529		$	472		$	(918	)	$	439
Other comprehensive income (loss)	$	3		$	30		$	25		$	(46	)	$	(9	)	$	3
Total comprehensive income (loss) attributable to Eaton ordinary shareholders	$	442		$	(53	)	$	554		$	426		$	(927	)	$	442

15

CONDENSED CONSOLIDATING BALANCE SHEETS MARCH 31, 2015
	Eaton Corporation plc		Eaton Corporation		Guarantors		Other subsidiaries		Consolidating adjustments			Total
Assets
Current assets
Cash	$	7	$	36	$	257	$	363	$	—		$	663
Short-term investments	—		—		1		138		—			139
Accounts receivable - net	—		557		1,013		2,163		—			3,733
Intercompany accounts    receivable	4		557		3,835		3,390		(7,786		)	—
Inventory	—		384		668		1,425		(53		)	2,424
Deferred income taxes	—		355		134		87		—			576
Prepaid expenses and    other current assets	—		122		41		248		(6		)	405
Total current assets	11		2,011		5,949		7,814		(7,845		)	7,940
Property, plant and    equipment - net	—		966		747		1,921		—			3,634
Other noncurrent assets
Goodwill	—		1,355		6,256		5,937		—			13,548
Other intangible assets	—		192		3,764		2,361		—			6,317
Deferred income taxes	—		892		2		145		(819		)	220
Investment in subsidiaries	26,508		12,410		57,827		9,184		(105,929		)	—
Intercompany loans receivable	—		7,766		2,112		41,301		(51,179		)	—
Other assets	—		583		132		322		—			1,037
Total assets	$	26,519	$	26,175	$	76,789	$	68,985	$	(165,772	)	$	32,696
Liabilities and    shareholders’ equity
Current liabilities
Short-term debt	$	—	$	250	$	—	$	17	$	—		$	267
Current portion of    long-term debt	—		701		542		1		—			1,244
Accounts payable	—		493		343		1,133		—			1,969
Intercompany accounts payable	59		4,022		2,706		999		(7,786		)	—
Accrued compensation	—		32		44		206		—			282
Other current liabilities	7		712		302		907		(24		)	1,904
Total current liabilities	66		6,210		3,937		3,263		(7,810		)	5,666
Noncurrent liabilities
Long-term debt	—		7,122		687		18		2			7,829
Pension liabilities	—		586		138		806		—			1,530
Other postretirement    benefits liabilities	—		280		135		91		—			506
Deferred income taxes	—		14		1,165		521		(819		)	881
Intercompany loans payable	11,243		2,768		36,310		858		(51,179		)	—
Other noncurrent liabilities	—		420		181		419		—			1,020
Total noncurrent liabilities	11,243		11,190		38,616		2,713		(51,996		)	11,766
Shareholders’ equity
Eaton shareholders' equity	15,210		8,775		34,236		62,963		(105,974		)	15,210
Noncontrolling interests	—		—		—		46		8			54
Total equity	15,210		8,775		34,236		63,009		(105,966		)	15,264
Total liabilities and equity	$	26,519	$	26,175	$	76,789	$	68,985	$	(165,772	)	$	32,696

16

CONDENSED CONSOLIDATING BALANCE SHEETS DECEMBER 31, 2014
	Eaton Corporation plc		Eaton Corporation		Guarantors		Other subsidiaries		Consolidating adjustments			Total
Assets
Current assets
Cash	$	1	$	173	$	13	$	594	$	—		$	781
Short-term investments	—		—		1		244		—			245
Accounts receivable - net	—		500		955		2,212		—			3,667
Intercompany accounts    receivable	2		759		3,820		4,101		(8,682		)	—
Inventory	—		397		637		1,445		(51		)	2,428
Deferred income taxes	—		368		132		93		—			593
Prepaid expenses and    other current assets	—		96		39		247		4			386
Total current assets	3		2,293		5,597		8,936		(8,729		)	8,100
Property, plant and    equipment - net	—		972		756		2,022		—			3,750
Other noncurrent assets
Goodwill	—		1,355		6,256		6,282		—			13,893
Other intangible assets	—		196		3,811		2,549		—			6,556
Deferred income taxes	—		889		10		137		(808		)	228
Investment in subsidiaries	26,612		12,179		58,687		9,145		(106,623		)	—
Intercompany loans receivable	—		7,542		2,249		40,635		(50,426		)	—
Other assets	—		533		141		328		—			1,002
Total assets	$	26,615	$	25,959	$	77,507	$	70,034	$	(166,586	)	$	33,529
Liabilities and    shareholders’ equity
Current liabilities
Short-term debt	$	—	$	—	$	—	$	2	$	—		$	2
Current portion of    long-term debt	—		702		304		2		—			1,008
Accounts payable	—		475		340		1,125		—			1,940
Intercompany accounts payable	117		4,125		3,449		991		(8,682		)	—
Accrued compensation	—		112		59		249		—			420
Other current liabilities	1		674		340		984		(14		)	1,985
Total current liabilities	118		6,088		4,492		3,353		(8,696		)	5,355
Noncurrent liabilities
Long-term debt	—		7,079		932		13		—			8,024
Pension liabilities	—		726		183		903		—			1,812
Other postretirement    benefits liabilities	—		283		136		94		—			513
Deferred income taxes	—		—		1,160		549		(808		)	901
Intercompany loans payable	10,711		2,723		36,162		830		(50,426		)	—
Other noncurrent liabilities	—		457		183		445		—			1,085
Total noncurrent liabilities	10,711		11,268		38,756		2,834		(51,234		)	12,335
Shareholders’ equity
Eaton shareholders' equity	15,786		8,603		34,259		63,802		(106,664		)	15,786
Noncontrolling interests	—		—		—		45		8			53
Total equity	15,786		8,603		34,259		63,847		(106,656		)	15,839
Total liabilities and equity	$	26,615	$	25,959	$	77,507	$	70,034	$	(166,586	)	$	33,529

17

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS FOR THE THREE MONTHS ENDED MARCH 31, 2015
	Eaton Corporation plc			Eaton Corporation			Guarantors			Other subsidiaries			Consolidating adjustments			Total
Net cash (used in) provided by    operating activities	$	(82	)	$	(187	)	$	19		$	327		$	—		$	77
Investing activities
Cash paid for acquisitions of businesses, net of cash acquired	—			—			—			(38		)	—			(38		)
Capital expenditures for property,    plant and equipment	—			(21		)	(26		)	(58		)	—			(105		)
Sales of short-term investments - net	—			—			—			99			—			99
Loans to affiliates	—			(154		)	—			(3,482		)	3,636			—
Repayments of loans from affiliates	—			—			11			2,850			(2,861		)	—
Other - net	—			(20		)	19			(8		)	—			(9		)
Net cash (used in) provided by    investing activities	—			(195		)	4			(637		)	775			(53		)
Financing activities
Proceeds from borrowings	—			250			—			16			—			266
Payments on borrowings	—			(2		)	—			(1		)	—			(3		)
Proceeds from borrowings from    affiliates	500			2,982			153			1			(3,636		)	—
Payments on borrowings from    affiliates	(24		)	(2,826		)	—			(11		)	2,861			—
Other intercompany    financing activities	—			(159		)	68			91			—			—
Cash dividends paid	(251		)	—			—			—			—			(251		)
Exercise of employee stock options	33			—			—			—			—			33
Repurchase of shares	(170		)	—			—			—			—			(170		)
Other - net	—			—			—			(2		)	—			(2		)
Net cash provided by (used in)    financing activities	88			245			221			94			(775		)	(127		)
Effect of currency on cash	—			—			—			(15		)	—			(15		)
Total increase (decrease) in cash	6			(137		)	244			(231		)	—			(118		)
Cash at the beginning of the period	1			173			13			594			—			781
Cash at the end of the period	$	7		$	36		$	257		$	363		$	—		$	663

18

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS FOR THE THREE MONTHS ENDED MARCH 31, 2014
	Eaton Corporation plc			Eaton Corporation			Guarantors			Other subsidiaries			Consolidating adjustments			Total
Net cash (used in) provided by    operating activities	$	(6	)	$	(440	)	$	182		$	276		$	—		$	12
Investing activities
Capital expenditures for property,    plant and equipment	—			(25		)	(29		)	(56		)	—			(110		)
Sales of short-term investments - net	—			—			98			333			—			431
Loans to affiliates	—			(7		)	—			(1,056		)	1,063			—
Repayments of loans from affiliates	—			171			—			814			(985		)	—
Proceeds from sale of business	—			—			—			3			—			3
Other - net	—			(13		)	(1		)	(6		)	—			(20		)
Net cash provided by    investing activities	—			126			68			32			78			304
Financing activities
Payments on borrowings	—			(251		)	—			(6		)	—			(257		)
Proceeds from borrowings from    affiliates	—			946			110			7			(1,063		)	—
Payments on borrowings from    affiliates	—			(510		)	(304		)	(171		)	985			—
Other intercompany    financing activities	217			104			(54		)	(267		)	—			—
Cash dividends paid	(229		)	—			—			—			—			(229		)
Exercise of employee stock options	23			—			—			—			—			23
Excess tax benefit from    equity-based compensation	—			20			—			—			—			20
Net cash provided by (used in)    financing activities	11			309			(248		)	(437		)	(78		)	(443		)
Effect of currency on cash	—			—			—			(4		)	—			(4		)
Total increase (decrease) in cash	5			(5		)	2			(133		)	—			(131		)
Cash at the beginning of the period	3			51			10			851			—			915
Cash at the end of the period	$	8		$	46		$	12		$	718		$	—		$	784

19

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.

Amounts are in millions of dollars or shares unless indicated otherwise (per share data assume dilution).

COMPANY OVERVIEW

Eaton Corporation plc (Eaton or the Company) is a power management company with 2014 net sales of $22.6 billion. The Company provides energy-efficient solutions that help its customers effectively manage electrical, hydraulic, and mechanical power more efficiently, safely, and sustainably. Eaton has approximately 102,000 employees in over 60 countries and sells products to customers in more than 175 countries.

Summary of Results of Operations

A summary of Eaton’s Net sales, Net income attributable to Eaton ordinary shareholders, and Net income per ordinary share-diluted follows:

	Three months ended March 31
	2015		2014
Net sales	$	5,223	$	5,492
Net income attributable to Eaton ordinary shareholders	466		439
Net income per ordinary share - diluted	$	0.99	$	0.92

RESULTS OF OPERATIONS

Non-GAAP Financial Measures

The following discussion of Consolidated Financial Results and Business Segment Results of Operations includes certain non-GAAP financial measures. These financial measures include operating earnings, operating earnings per ordinary share, and operating profit before acquisition integration charges for each business segment as well as corporate, each of which excludes amounts that differ from the most directly comparable measure calculated in accordance with generally accepted accounting principles (GAAP). A reconciliation of operating earnings and operating earnings per ordinary share to the most directly comparable GAAP measure is included in the table below. Operating profit before acquisition integration charges is reconciled in the discussion of the operating results of each business segment. Management believes that these financial measures are useful to investors because they exclude transactions of an unusual nature, allowing investors to more easily compare Eaton’s financial performance period to period. Management uses this information in monitoring and evaluating the on-going performance of Eaton and each business segment. For additional information on acquisition integration charges, see Note 3 to the Condensed Consolidated Financial Statements.

20

Consolidated Financial Results

	Three months ended March 31						Increase (decrease)
	2015			2014
Net sales	$	5,223		$	5,492		(5	)%
Gross profit	1,630			1,634			—	%
Percent of net sales	31.2		%	29.8		%
Income before income taxes	505			453			11	%
Net income	$	467		$	441		6	%
Less net income for noncontrolling interests	(1		)	(2		)
Net income attributable to Eaton    ordinary shareholders	466			439			6	%
Excluding acquisition integration charges (after-tax)	7			44
Operating earnings	$	473		$	483		(2	)%
Net income per ordinary share - diluted	$	0.99		$	0.92		8	%
Excluding per share impact of acquisition    integration charges costs (after-tax)	0.02			0.09
Operating earnings per ordinary share	$	1.01		$	1.01		—	%

Net Sales

Net sales in the first quarter of 2015 decreased 5% compared to the first quarter of 2014 due to a decrease of 6% from the impact of currency translation, partially offset by an increase of 1% in organic sales. The increase in organic sales is primarily due to growth in the Company's end markets, particularly in North America.

Gross Profit

The gross profit margin increased from 29.8% in the first quarter of 2014 to 31.2% in the first quarter of 2015. The increase in the gross profit margin in the first quarter of 2015 was primarily due to higher organic sales volumes, as noted above, and actions taken over the last year to realize greater efficiencies.

Income Taxes

The effective income tax rate for the first quarter of 2015 was expense of 8% compared to expense of 3% for the first quarter of 2014. The increase in the effective income tax rate in first quarter of 2015 is primarily due to more income earned in higher tax jurisdictions including the United States.

Operating Earnings

Operating earnings, a non-GAAP measure discussed on page 20, of $473 in the first quarter of 2015 decreased 2% compared to operating earnings of $483 in the first quarter of 2014. Operating earnings per ordinary share of $1.01 in the first quarter of 2015 were flat with the first quarter of 2014, primarily due to the negative impact from lower currency translation and a higher tax rate, offset by lower pension benefits expense and the impact of share repurchases over the last year.

Business Segment Results of Operations

The following is a discussion of Net sales, operating profit and operating margin by business segment, which includes a discussion of operating profit and operating profit margin before acquisition integration charges. For additional information related to acquisition integration charges, see Note 3 to the Condensed Consolidated Financial Statements.

21

Electrical Products

	Three months ended March 31						Increase (decrease)
	2015			2014
Net sales	$	1,691		$	1,726		(2	)%
Operating profit	$	260		$	250		4	%
Operating margin	15.4		%	14.5		%
Acquisition integration charges	$	6		$	29
Before acquisition integration charges
Operating profit	$	266		$	279		(5	)%
Operating margin	15.7		%	16.2		%

Net sales decreased 2% in the first quarter of 2015 compared to the first quarter of 2014 due to a decrease of 6% from the impact of currency translation, partially offset by an increase in organic sales of 4%. Organic sales growth in the first quarter of 2015 was due to strength in North American markets.

Operating margin before acquisition integration charges decreased from 16.2% in the first quarter of 2014 to 15.7% in the first quarter of 2015. The decrease in operating margin in the first quarter of 2015 was primarily due to unfavorable mix and the impact of exchange on sales to Canada.

Electrical Systems and Services

	Three months ended March 31						Increase (decrease)
	2015			2014
Net sales	$	1,448		$	1,524		(5	)%
Operating profit	$	186		$	169		10	%
Operating margin	12.8		%	11.1		%
Acquisition integration charges	$	3		$	26
Before acquisition integration charges
Operating profit	$	189		$	195		(3	)%
Operating margin	13.1		%	12.8		%

Net sales decreased 5% in the first quarter of 2015 compared to the first quarter of 2014 due to a decrease of 4% from the impact of currency translation and a decrease in organic sales of 1%. The organic sales decline during the first quarter of 2015 was primarily due to a decline in large projects in the Americas. 

Operating margin before acquisition integration charges increased from 12.8% in the first quarter of 2014 to 13.1% in the first quarter of 2015. The increase in operating margin in the first quarter of 2015 was primarily due to operational efficiency improvements.

22

Hydraulics

	Three months ended March 31						Decrease
	2015			2014
Net sales	$	665		$	782		(15	)%
Operating profit	$	66		$	108		(39	)%
Operating margin	9.9		%	13.8		%
Acquisition integration charges	$	1		$	4
Before acquisition integration charges
Operating profit	$	67		$	112		(40	)%
Operating margin	10.1		%	14.3		%

Net sales decreased 15% in the first quarter of 2015 compared to the first quarter of 2014 due to a decrease of organic sales of 9% and a decrease of 6% from the impact of currency translation. The decrease in organic sales in the first quarter of 2015 was primarily due to weakness in the global agricultural equipment market and the China construction equipment market.

Operating margin before acquisition integration charges decreased from 14.3% in the first quarter of 2014 to 10.1% in the first quarter of 2015. The decrease in operating margin in the first quarter of 2015 was primarily due to lower sales volumes, as noted above, unfavorable mix, and the cost of restructuring initiatives.

Aerospace

	Three months ended March 31						Increase
	2015			2014
Net sales	$	464		$	464		—	%
Operating profit	$	77		$	62		24	%
Operating margin	16.6		%	13.4		%

Net sales in the first quarter of 2015 were the same as the first quarter of 2014, reflecting an increase in organic sales of 8%, offset by a decrease of 5% from the divestiture of Eaton's Aerospace Power Distribution Management Solutions and Integrated Cockpit Solutions businesses in 2014 and a decrease of 3% from the impact of currency translation. The increase in organic sales in the first quarter of 2015 was primarily due to higher after-market sales and continued strength in commercial OEM markets.

Operating margin increased from 13.4% in the first quarter of 2014 to 16.6% in the first quarter of 2015. The increase in operating margin in the first quarter of 2015 was primarily due to higher organic sales volumes, as noted above, and favorable mix.

Vehicle

	Three months ended March 31						Increase (decrease)
	2015			2014
Net sales	$	955		$	996		(4	)%
Operating profit	$	164		$	151		9	%
Operating margin	17.2		%	15.2		%

Net sales decreased 4% in the first quarter of 2015 compared to the first quarter of 2014 due to a decrease of 8% from the impact of currency translation, partially offset by an increase in organic sales of 4%. The increase in organic sales in the first quarter of 2015 was primarily due to improved demand in the North American truck and automotive markets, partially offset by weakness in South American markets.

23

Operating margin increased from 15.2% in the first quarter of 2014 to 17.2% in the first quarter of 2015. The increase in operating margin in the first quarter of 2015 was primarily due to higher organic sales, as noted above, and the favorable impact of certain restructuring activities taken in 2014 to generate ongoing efficiencies.

Corporate Expense

	Three months ended March 31				Decrease
	2015		2014
Amortization of intangible assets	102		110		(7	)%
Interest expense - net	57		62		(8	)%
Pension and other postretirement    benefits expense	28		51		(45	)%
Other corporate expense - net	61		64		(5	)%
Total corporate expense	$	248	$	287	(14	)%

Total Corporate expense decreased 14% from $287 in the first quarter of 2014 to $248 in the first quarter of 2015 primarily due to lower Pension and other postretirement benefits expense related to lower lump sum settlements in the first quarter of 2015. Higher settlement expense in the first quarter of 2014 was related to the expiry of restrictions on lump sum settlements.

LIQUIDITY, CAPITAL RESOURCES AND CHANGES IN FINANCIAL CONDITION

Financial Condition and Liquidity

Eaton’s objective is to finance its business through operating cash flow and an appropriate mix of equity and long-term and short-term debt. By diversifying its debt maturity structure, Eaton reduces liquidity risk. The Company maintains access to the commercial paper markets through a commercial paper program, which is supported by credit facilities in the aggregate principal amount of $2,000. There were no borrowings outstanding under these revolving credit facilities at March 31, 2015. Over the course of a year, cash, short-term investments and short-term debt may fluctuate in order to manage global liquidity. Eaton believes it has the operating flexibility, cash flow, cash and short-term investment balances, and access to capital markets in excess of the liquidity necessary to meet future operating needs of the business as well as scheduled payments of long-term debt.

Eaton was in compliance with each of its debt covenants for all periods presented.

Sources and Uses of Cash Flow

Operating Cash Flow

Net cash provided by operating activities was $77 in the first three months of 2015, an increase of $65 compared to $12 in the first three months of 2014. The increase in net cash provided by operating activities was primarily due to a decrease in contributions of $52 in pension and other postretirement benefit plans, which totaled $232 in the first three months of 2015 compared to $284 in 2014.

Investing Cash Flow

Net cash used in investing activities was $53 in the first three months of 2015, a decrease $357 compared to net cash provided by investing activities of $304 in the first three months of 2014. The decline in investing cash flows was primarily the result of a decrease in sales of short-term investments of $332 and an increase in cash paid for acquisitions of businesses of $38 during 2015.

Financing Cash Flow

Net cash used in financing activities was $127 in the first three months of 2015, a decrease of $316 in the use of cash compared to $443 in the first three months of 2014. The lower use of cash was primarily due to an increase in proceeds from borrowings, which totaled $266 in the first three months of 2015 compared to $0 in 2014. In addition, payments on borrowings totaled $3 in the first three months of 2015 compared to $257 in 2014. Financing cash inflows were offset with $170 of share repurchases during the first three months of 2015 compared to $0 in 2014 and dividends increased $22 to $251 in 2015 compared to $229 in 2014.

24

FORWARD-LOOKING STATEMENTS

This Form 10-Q Report contains forward-looking statements concerning litigation developments, capital expenditures and restructuring charges, amount other matters. These statements may discuss goals, intentions and expectations as to future trends, plans, events, results of operations or financial condition, or state other information relating to Eaton, based on current beliefs of management as well as assumptions made by, and information currently available to, management. Forward-looking statements generally will be accompanied by words such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “forecast,” “guidance,” “intend,” “may,” “possible,” “potential,” “predict,” “project” or other similar words, phrases or expressions. These statements should be used with caution and are subject to various risks and uncertainties, many of which are outside Eaton’s control. The following factors could cause actual results to differ materially from those in the forward-looking statements: unanticipated changes in the markets for the Company’s business segments; unanticipated downturns in business relationships with customers or their purchases from us; the availability of credit to customers and suppliers; competitive pressures on sales and pricing; unanticipated changes in the cost of material and other production costs, or unexpected costs that cannot be recouped in product pricing; the introduction of competing technologies; unexpected technical or marketing difficulties; unexpected claims, charges, litigation or dispute resolutions; strikes or other labor unrest; the impact of acquisitions and divestitures; unanticipated difficulties integrating acquisitions; new laws and governmental regulations; interest rate changes; tax rate changes or exposure to additional income tax liability; stock market and currency fluctuations; war, civil or political unrest or terrorism; and unanticipated deterioration of economic and financial conditions in the United States and around the world. Eaton does not assume any obligation to update these forward-looking statements.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.

There have been no material changes in exposures to market risk since December 31, 2014.

ITEM 4. CONTROLS AND PROCEDURES.

Evaluation of Disclosure Controls and Procedures - Pursuant to SEC Rule 13a-15, an evaluation was performed under the supervision and with the participation of Eaton’s management, including Alexander M. Cutler - Principal Executive Officer; and Richard H. Fearon - Principal Financial Officer, of the effectiveness of the design and operation of the Company's disclosure controls and procedures. Based on that evaluation, management concluded that Eaton’s disclosure controls and procedures were effective as of March 31, 2015.

Disclosure controls and procedures are designed to ensure that information required to be disclosed in Eaton’s reports filed or submitted under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed in Eaton’s reports filed under the Exchange Act is accumulated and communicated to management, including Eaton’s Principal Executive Officer and Principal Financial Officer, to allow timely decisions regarding required disclosure.

During the first quarter of 2015, there was no change in Eaton's internal control over financial reporting that materially affected, or is reasonably likely to materially affect, internal control over financial reporting.

25

PART II — OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS.

Information regarding the Company's current legal proceedings is presented in Note 6 of the Notes to the Condensed Consolidated Financial Statements.

ITEM 1A. RISK FACTORS.

“Item 1A. Risk Factors” in Eaton's 2014 Form 10-K includes a discussion of the Company's risk factors. There have been no material changes from the risk factors described in the 2014 Form 10-K.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS.

(c) Issuer's Purchases of Equity Securities

During the first quarter of 2015, 2.4 million ordinary shares were repurchased in the open market at a total cost of $170 million. These shares were repurchased under the program announced and approved by shareholders on April 24, 2013 and on April 23, 2014, and approved by the Board of Directors on October 22, 2013. A summary of the shares repurchased in the first quarter of 2015 follows:

Month	Total number of shares purchased	Average price paid per share		Total number of shares purchased as part of publicly announced plans or programs	Maximum number of shares that may yet be purchased under the plans or programs
February	1,890,821	$	71.45	1,890,821	28,550,017
March	518,200	$	67.52	518,200	28,031,817
Total	2,409,021	$	70.60	2,409,021

ITEM 6. EXHIBITS.

Exhibits — See Exhibit Index attached.

26

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

			EATON CORPORATION plc
			Registrant
Date:	April 29, 2015	By:	/s/ Richard H. Fearon
			Richard H. Fearon
			Principal Financial Officer
			(On behalf of the registrant and as Principal Financial Officer)

27

Eaton Corporation plc

First Quarter 2015 Report on Form 10-Q

Exhibit Index

3 (i)	Certificate of Incorporation - Incorporated by reference to the Form S-8 filed November 30, 2012
3 (ii)	Amended and restated Memorandum and Articles of Incorporation - Incorporated by reference to the Form 10-Q Report for the three months ended September 30, 2012
4 (a)	Pursuant to Regulation S-K Item 601(b)(4), Eaton agrees to furnish to the SEC, upon request, a copy of the instruments defining the rights of holders of its other long-term debt
12	Ratio of Earnings to Fixed Charges — Filed in conjunction with this Form 10-Q Report *
31.1	Certification of Principal Executive Officer (Pursuant to Rule 13a-14(a)) — Filed in conjunction with this Form 10-Q Report *
31.2	Certification of Principal Financial Officer (Pursuant to Rule 13a-14(a)) — Filed in conjunction with this Form 10-Q Report *
32.1	Certification of Principal Executive Officer (Pursuant to Rule 13a-14(b) as adopted pursuant to Section 906 of the Sarbanes-Oxley Act) — Filed in conjunction with this Form 10-Q Report *
32.2	Certification of Principal Financial Officer (Pursuant to Rule 13a-14(b) as adopted pursuant to Section 906 of the Sarbanes-Oxley Act) — Filed in conjunction with this Form 10-Q Report *
101.INS	XBRL Instance Document *
101.SCH	XBRL Taxonomy Extension Schema Document *
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document *
101.DEF	XBRL Taxonomy Extension Label Definition Document *
101.LAB	XBRL Taxonomy Extension Label Linkbase Document *
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document *

_______________________________

* Submitted electronically herewith.

Attached as Exhibit 101 to this report are the following formatted in XBRL (Extensible Business Reporting Language): (i) Consolidated Statements of Income for the three months ended March 31, 2015 and 2014, (ii) Consolidated Statements of Comprehensive Income for the three months ended March 31, 2015 and 2014, (iii) Condensed Consolidated Balance Sheets at March 31, 2015 and December 31, 2014, (iv) Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2015 and 2014 and (v) Notes to Condensed Consolidated Financial Statements for the three months ended March 31, 2015.

28

EX-12

Eaton Corporation plc

First Quarter 2015 Report on Form 10-Q

Item 6

Exhibit 12

Ratio of Earnings to Fixed Charges

	Three months ended March 31			Year ended December 31
(Millions of dollars)	2015			2014			2013		2012			2011			2010
Income from continuing operations before income taxes    and noncontrolling interests in consolidated subsidiaries	$	505		$	1,761		$	1,884	$	1,251		$	1,553		$	1,036
Adjustments
(Income) losses of equity investees	(3		)	(6		)	2		(2		)	(2		)	(14		)
Distributed income of equity investees	3			4			77		19			3			15
Interest expensed	59			250			290		165			154			162
Amortization of debt issue costs	2			9			10		74			4			4
Estimated portion of rent expense representing interest	19			81			80		66			65			57
Amortization of capitalized interest	—			14			13		12			10			10
Adjusted income from continuing operations before    income taxes	$	585		$	2,113		$	2,356	$	1,585		$	1,787		$	1,270
Fixed charges
Interest expensed	$	59		$	250		$	290	$	165		$	154		$	162
Interest capitalized	4			13			11		23			18			8
Amortization of debt issue costs	2			9			10		74			4			4
Estimated portion of rent expense representing interest	19			81			80		66			65			57
Total fixed charges	$	84		$	353		$	391	$	328		$	241		$	231
Ratio of earnings to fixed charges	6.96			5.99			6.03		4.83			7.41			5.50

EX-31.1

Eaton Corporation plc

First Quarter 2015 Report on Form 10-Q

Item 6

Exhibit 31.1

Certification

I, Alexander M. Cutler, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Eaton Corporation plc;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:	April 29, 2015	/s/ Alexander M. Cutler
		Alexander M. Cutler
		Principal Executive Officer

EX-31.2

Eaton Corporation plc

First Quarter 2015 Report on Form 10-Q

Item 6

Exhibit 31.2

Certification

I, Richard H. Fearon, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Eaton Corporation plc;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:	April 29, 2015	/s/ Richard H. Fearon
		Richard H. Fearon
		Principal Financial Officer

EX-32.1

Eaton Corporation plc

First Quarter 2015 Report on Form 10-Q

Item 6

Exhibit 32.1

Certification

This written statement is submitted in accordance with Section 906 of the Sarbanes-Oxley Act of 2002. It accompanies Eaton Corporation plc’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2015 (“10-Q Report”).

I hereby certify that, based on my knowledge, the 10-Q Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C 78m), and information contained in the 10-Q Report fairly presents, in all material respects, the financial condition and results of operations of Eaton Corporation plc and its consolidated subsidiaries.

Date:	April 29, 2015	/s/ Alexander M. Cutler
		Alexander M. Cutler
		Principal Executive Officer

EX-32.2

Eaton Corporation plc

First Quarter 2015 Report on Form 10-Q

Item 6

Exhibit 32.2

Certification

This written statement is submitted in accordance with Section 906 of the Sarbanes-Oxley Act of 2002. It accompanies Eaton Corporation plc’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2015 (“10-Q Report”).

I hereby certify that, based on my knowledge, the 10-Q Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C 78m), and information contained in the 10-Q Report fairly presents, in all material respects, the financial condition and results of operations of Eaton Corporation plc and its consolidated subsidiaries.

Date:	April 29, 2015	/s/ Richard H. Fearon
		Richard H. Fearon
		Principal Financial Officer

XML

Calculation of Net Income per Ordinary Share (Details) (USD $) In Millions, except Per Share data, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Calculation of net income per ordinary share attributable to ordinary shareholders
Net income attributable to Eaton ordinary shareholders	$ 466	$ 439
Weighted-average number of ordinary shares outstanding - diluted	470.0	478.8
Less dilutive effect of equity-based compensation	2.1	3.0
Weighted-average number of ordinary shares outstanding - basic	467.9	475.8
Stock options excluded from calculation of diluted net income per ordinary share	0.9	0.1
Net income per ordinary share
Diluted	$ 0.99	$ 0.92
Basic	$ 1.00	$ 0.92

XML

Condensed Consolidating Financial Information Consolidating Statements of Comprehensive Income (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Consolidating Statements of Comprehensive Income, Captions [Line Items]
Net sales	$ 5,223	$ 5,492
Cost of products sold	3,593	3,858
Selling and administrative expense	915	962
Research and development expense	158	162
Interest expense (income) - net	57	62
Other (income) expense - net	(5)	(5)
Equity in earnings of subsidiaries, net of tax	0	0
Intercompany expense (income) - net	0	0
Income before income taxes	505	453
Income tax (benefit) expense	38	12
Net income	467	441
Less net income for noncontrolling interests	(1)	(2)
Net income attributable to Eaton ordinary shareholders	466	439
Other comprehensive loss	(634)	3
Total comprehensive (loss) income attributable to Eaton ordinary shareholders	(168)	442
Eaton Corporation plc [Member]
Consolidating Statements of Comprehensive Income, Captions [Line Items]
Net sales	0	0
Cost of products sold	0	0
Selling and administrative expense	2	2
Research and development expense	0	0
Interest expense (income) - net	0	0
Other (income) expense - net	0	0
Equity in earnings of subsidiaries, net of tax	(545)	(469)
Intercompany expense (income) - net	77	28
Income before income taxes	466	439
Income tax (benefit) expense	0	0
Net income	466	439
Less net income for noncontrolling interests	0	0
Net income attributable to Eaton ordinary shareholders	466	439
Other comprehensive loss	(634)	3
Total comprehensive (loss) income attributable to Eaton ordinary shareholders	(168)	442
Eaton Corporation [Member]
Consolidating Statements of Comprehensive Income, Captions [Line Items]
Net sales	1,702	1,667
Cost of products sold	1,310	1,342
Selling and administrative expense	377	361
Research and development expense	71	60
Interest expense (income) - net	54	59
Other (income) expense - net	(5)	5
Equity in earnings of subsidiaries, net of tax	(211)	7
Intercompany expense (income) - net	(41)	(70)
Income before income taxes	147	(97)
Income tax (benefit) expense	(22)	(14)
Net income	169	(83)
Less net income for noncontrolling interests	0	0
Net income attributable to Eaton ordinary shareholders	169	(83)
Other comprehensive loss	46	30
Total comprehensive (loss) income attributable to Eaton ordinary shareholders	215	(53)
Guarantors [Member]
Consolidating Statements of Comprehensive Income, Captions [Line Items]
Net sales	1,696	1,641
Cost of products sold	1,295	1,218
Selling and administrative expense	176	200
Research and development expense	45	50
Interest expense (income) - net	6	7
Other (income) expense - net	(1)	3
Equity in earnings of subsidiaries, net of tax	(713)	(491)
Intercompany expense (income) - net	271	132
Income before income taxes	617	522
Income tax (benefit) expense	21	(7)
Net income	596	529
Less net income for noncontrolling interests	0	0
Net income attributable to Eaton ordinary shareholders	596	529
Other comprehensive loss	(620)	25
Total comprehensive (loss) income attributable to Eaton ordinary shareholders	(24)	554
Other subsidiaries [Member]
Consolidating Statements of Comprehensive Income, Captions [Line Items]
Net sales	3,116	3,291
Cost of products sold	2,277	2,392
Selling and administrative expense	360	399
Research and development expense	42	52
Interest expense (income) - net	(5)	(6)
Other (income) expense - net	1	(13)
Equity in earnings of subsidiaries, net of tax	(129)	45
Intercompany expense (income) - net	(307)	(90)
Income before income taxes	877	512
Income tax (benefit) expense	41	38
Net income	836	474
Less net income for noncontrolling interests	(1)	(2)
Net income attributable to Eaton ordinary shareholders	835	472
Other comprehensive loss	(746)	(46)
Total comprehensive (loss) income attributable to Eaton ordinary shareholders	89	426
Consolidating adjustments [Member]
Consolidating Statements of Comprehensive Income, Captions [Line Items]
Net sales	(1,291)	(1,107)
Cost of products sold	(1,289)	(1,094)
Selling and administrative expense	0	0
Research and development expense	0	0
Interest expense (income) - net	2	2
Other (income) expense - net	0	0
Equity in earnings of subsidiaries, net of tax	1,598	908
Intercompany expense (income) - net	0	0
Income before income taxes	(1,602)	(923)
Income tax (benefit) expense	(2)	(5)
Net income	(1,600)	(918)
Less net income for noncontrolling interests	0	0
Net income attributable to Eaton ordinary shareholders	(1,600)	(918)
Other comprehensive loss	1,320	(9)
Total comprehensive (loss) income attributable to Eaton ordinary shareholders	$ (280)	$ (927)

XML

Business Segment Information (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Business Segment Information
Net sales	$ 5,223	$ 5,492
Interest expense - net	57	62
Pension and other postretirement benefits expense	(76)	(99)
Other corporate expense - net	(5)	(5)
Income before income taxes	505	453
Income tax expense	38	12
Net income	467	441
Less net income for noncontrolling interests	(1)	(2)
Net income attributable to Eaton ordinary shareholders	466	439
Electrical Products [Member]
Business Segment Information
Net sales	1,691	1,726
Segment operating profit	260	250
Electrical Systems and Services [Member]
Business Segment Information
Net sales	1,448	1,524
Segment operating profit	186	169
Hydraulics [Member]
Business Segment Information
Net sales	665	782
Segment operating profit	66	108
Aerospace [Member]
Business Segment Information
Net sales	464	464
Segment operating profit	77	62
Vehicle [Member]
Business Segment Information
Net sales	955	996
Segment operating profit	164	151
Corporate
Business Segment Information
Amortization of intangible assets	(102)	(110)
Interest expense - net	(57)	(62)
Pension and other postretirement benefits expense	(28)	(51)
Other corporate expense - net	(61)	(64)
Total business segments
Business Segment Information
Segment operating profit	$ 753	$ 740

XML

Retirement Benefits Plans (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
United States pension benefit expense [Member]
Retirement benefits plans expense
Service cost	$ 31	$ 29
Interest cost	39	40
Expected return on plan assets	(66)	(61)
Amortization	30	23
Total	34	31
Settlement loss	14	34
Total expense	48	65
Non-United States pension benefit expense [Member]
Retirement benefits plans expense
Service cost	18	16
Interest cost	18	22
Expected return on plan assets	(25)	(25)
Amortization	10	7
Total	21	20
Settlement loss	0	0
Total expense	21	20
Other postretirement benefits expense [Member]
Retirement benefits plans expense
Service cost	2	4
Interest cost	6	9
Expected return on plan assets	(1)	(1)
Amortization	0	2
Total	7	14
Settlement loss	0	0
Total expense	$ 7	$ 14

XML

Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2015

Fair Value Disclosures [Abstract]

Summary of financial instruments recognized at fair value and fair value measurement used

A summary of financial instruments recognized at fair value, and the fair value measurements used, follows:

	Total			Level 1		Level 2			Level 3
March 31, 2015
Cash	$	663		$	663	$	—		$	—
Short-term investments	139			139		—			—
Net derivative contracts	129			—		129			—
Long-term debt converted to floating interest rates by    interest rate swaps - net	(122		)	—		(122		)	—
December 31, 2014
Cash	$	781		$	781	$	—		$	—
Short-term investments	245			245		—			—
Net derivative contracts	70			—		70			—
Long-term debt converted to floating interest rates by    interest rate swaps - net	(74		)	—		(74		)	—

XML

Condensed Consolidating Financial Information Condensed Consolidating Statements of Cash Flows (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Condensed Consolidating Statements of Cash Flows, Captions [Line Items]
Net cash (used in) provided by operating activities	$ 77	$ 12
Cash paid for acquisitions of businesses, net of cash acquired	(38)	0
Capital expenditures for property, plant and equipment	(105)	(110)
Sales of short-term investments - net	99	431
Loans to affiliates	0	0
Repayments of loans from affiliates	0	0
Proceeds from sale of businesses	0	3
Other - net	(9)	(20)
Net cash (used in) provided by investing activities	(53)	304
Proceeds from borrowings	266	0
Payments on borrowings	(3)	(257)
Proceeds from borrowings from affiliates	0	0
Payments on borrowings from affiliates	0	0
Other intercompany financing activities	0	0
Cash dividends paid	(251)	(229)
Exercise of employee stock options	33	23
Repurchase of shares	(170)	0
Excess tax benefit from equity-based compensation	0	20
Other - net	(2)	0
Net cash used in financing activities	(127)	(443)
Effect of currency on cash	(15)	(4)
Total decrease in cash	(118)	(131)
Cash at the beginning of the period	781	915
Cash at the end of the period	663	784
Eaton Corporation plc [Member]
Condensed Consolidating Statements of Cash Flows, Captions [Line Items]
Net cash (used in) provided by operating activities	(82)	(6)
Cash paid for acquisitions of businesses, net of cash acquired	0
Capital expenditures for property, plant and equipment	0	0
Sales of short-term investments - net	0	0
Loans to affiliates	0	0
Repayments of loans from affiliates	0	0
Proceeds from sale of businesses		0
Other - net	0	0
Net cash (used in) provided by investing activities	0	0
Proceeds from borrowings	0
Payments on borrowings	0	0
Proceeds from borrowings from affiliates	500	0
Payments on borrowings from affiliates	(24)	0
Other intercompany financing activities	0	217
Cash dividends paid	(251)	(229)
Exercise of employee stock options	33	23
Repurchase of shares	(170)
Excess tax benefit from equity-based compensation		0
Other - net	0
Net cash used in financing activities	88	11
Effect of currency on cash	0	0
Total decrease in cash	6	5
Cash at the beginning of the period	1	3
Cash at the end of the period	7	8
Eaton Corporation [Member]
Condensed Consolidating Statements of Cash Flows, Captions [Line Items]
Net cash (used in) provided by operating activities	(187)	(440)
Cash paid for acquisitions of businesses, net of cash acquired	0
Capital expenditures for property, plant and equipment	(21)	(25)
Sales of short-term investments - net	0	0
Loans to affiliates	(154)	(7)
Repayments of loans from affiliates	0	171
Proceeds from sale of businesses		0
Other - net	(20)	(13)
Net cash (used in) provided by investing activities	(195)	126
Proceeds from borrowings	250
Payments on borrowings	(2)	(251)
Proceeds from borrowings from affiliates	2,982	946
Payments on borrowings from affiliates	(2,826)	(510)
Other intercompany financing activities	(159)	104
Cash dividends paid	0	0
Exercise of employee stock options	0	0
Repurchase of shares	0
Excess tax benefit from equity-based compensation		20
Other - net	0
Net cash used in financing activities	245	309
Effect of currency on cash	0	0
Total decrease in cash	(137)	(5)
Cash at the beginning of the period	173	51
Cash at the end of the period	36	46
Guarantors [Member]
Condensed Consolidating Statements of Cash Flows, Captions [Line Items]
Net cash (used in) provided by operating activities	19	182
Cash paid for acquisitions of businesses, net of cash acquired	0
Capital expenditures for property, plant and equipment	(26)	(29)
Sales of short-term investments - net	0	98
Loans to affiliates	0	0
Repayments of loans from affiliates	11	0
Proceeds from sale of businesses		0
Other - net	19	(1)
Net cash (used in) provided by investing activities	4	68
Proceeds from borrowings	0
Payments on borrowings	0	0
Proceeds from borrowings from affiliates	153	110
Payments on borrowings from affiliates	0	(304)
Other intercompany financing activities	68	(54)
Cash dividends paid	0	0
Exercise of employee stock options	0	0
Repurchase of shares	0
Excess tax benefit from equity-based compensation		0
Other - net	0
Net cash used in financing activities	221	(248)
Effect of currency on cash	0	0
Total decrease in cash	244	2
Cash at the beginning of the period	13	10
Cash at the end of the period	257	12
Other subsidiaries [Member]
Condensed Consolidating Statements of Cash Flows, Captions [Line Items]
Net cash (used in) provided by operating activities	327	276
Cash paid for acquisitions of businesses, net of cash acquired	(38)
Capital expenditures for property, plant and equipment	(58)	(56)
Sales of short-term investments - net	99	333
Loans to affiliates	(3,482)	(1,056)
Repayments of loans from affiliates	2,850	814
Proceeds from sale of businesses		3
Other - net	(8)	(6)
Net cash (used in) provided by investing activities	(637)	32
Proceeds from borrowings	16
Payments on borrowings	(1)	(6)
Proceeds from borrowings from affiliates	1	7
Payments on borrowings from affiliates	(11)	(171)
Other intercompany financing activities	91	(267)
Cash dividends paid	0	0
Exercise of employee stock options	0	0
Repurchase of shares	0
Excess tax benefit from equity-based compensation		0
Other - net	(2)
Net cash used in financing activities	94	(437)
Effect of currency on cash	(15)	(4)
Total decrease in cash	(231)	(133)
Cash at the beginning of the period	594	851
Cash at the end of the period	363	718
Consolidating adjustments [Member]
Condensed Consolidating Statements of Cash Flows, Captions [Line Items]
Net cash (used in) provided by operating activities	0	0
Cash paid for acquisitions of businesses, net of cash acquired	0
Capital expenditures for property, plant and equipment	0	0
Sales of short-term investments - net	0	0
Loans to affiliates	3,636	1,063
Repayments of loans from affiliates	(2,861)	(985)
Proceeds from sale of businesses		0
Other - net	0	0
Net cash (used in) provided by investing activities	775	78
Proceeds from borrowings	0
Payments on borrowings	0	0
Proceeds from borrowings from affiliates	(3,636)	(1,063)
Payments on borrowings from affiliates	2,861	985
Other intercompany financing activities	0	0
Cash dividends paid	0	0
Exercise of employee stock options	0	0
Repurchase of shares	0
Excess tax benefit from equity-based compensation		0
Other - net	0
Net cash used in financing activities	(775)	(78)
Effect of currency on cash	0	0
Total decrease in cash	0	0
Cash at the beginning of the period	0	0
Cash at the end of the period	$ 0	$ 0

XML

Fair Value Measurements Other Fair Value Measurements (Details) (USD $) In Millions, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Other Fair Value Measurements [Line Items]
Carrying value of long-term debt and current portion of long-term debt	$ 9,073	$ 9,032
Level 2 [Member]
Other Fair Value Measurements [Line Items]
Fair value of long-term debt and current portion of long-term debt	$ 9,679	$ 9,509

XML

Changes in Accumulated Other Comprehensive (Loss) Income (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Amounts reclassified from Accumulated other comprehensive loss	$ 34
Net current-period Other comprehensive (loss) income	(634)	3
Currency translation and related hedging instruments [Member]
Balance at December 31, 2014	(1,414)
Other comprehensive (loss) income before reclassifications	(720)
Amounts reclassified from Accumulated other comprehensive loss	0
Net current-period Other comprehensive (loss) income	(720)
Balance at March 31, 2015	(2,134)
Pensions and other postretirement benefits [Member]
Balance at December 31, 2014	(1,485)
Other comprehensive (loss) income before reclassifications	51
Amounts reclassified from Accumulated other comprehensive loss	35
Net current-period Other comprehensive (loss) income	86
Balance at March 31, 2015	(1,399)
Cash flow hedges [Member]
Balance at December 31, 2014	0
Other comprehensive (loss) income before reclassifications	1
Amounts reclassified from Accumulated other comprehensive loss	(1)
Net current-period Other comprehensive (loss) income	0
Balance at March 31, 2015	0
AOCI Attributable to Parent [Member]
Balance at December 31, 2014	(2,899)
Other comprehensive (loss) income before reclassifications	(668)
Amounts reclassified from Accumulated other comprehensive loss	34
Net current-period Other comprehensive (loss) income	(634)
Balance at March 31, 2015	$ (3,533)

XML

Condensed Consolidating Financial Information (Details) (USD $) In Millions, unless otherwise specified	Nov. 20, 2012
Condensed Consolidating Financial Information [Abstract]
Issuance of senior notes	$ 4,900
Eaton and certain other 100% owned subsidiaries guarantee of Senior Debt	100.00%

XML

Goodwill

3 Months Ended

Mar. 31, 2015

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL

GOODWILL

A summary of goodwill follows:

	Electrical Products			Electrical Systems and Services			Hydraulics			Aerospace			Vehicle			Total
December 31, 2014	$	6,940		$	4,314		$	1,327		$	962		$	350		$	13,893
Additions	—			22			—			—			—			22
Translation adjustments	(206		)	(98		)	(51		)	(6		)	(6		)	(367		)
March 31, 2015	$	6,734		$	4,238		$	1,276		$	956		$	344		$	13,548

XML

Derivative Financial Instruments and Hedging Activities (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended	12 Months Ended
	Mar. 31, 2015	Dec. 31, 2014
Derivatives not designated as hedges
Debt denominated in foreign currency designated as non-derivative net investment hedging instrument	83	84
Percentage of intercompany balance sheet exposure	100.00%
Other current assets [Member]
Derivatives designated as hedges
Derivative asset designated as hedging instrument	16	8
Derivatives not designated as hedges
Derivative instruments not designated as hedging instruments, asset, at fair value	52	47
Other noncurrent assets [Member]
Derivatives designated as hedges
Derivative asset designated as hedging instrument	122	85
Other current liabilities [Member]
Derivatives designated as hedges
Derivative liability designated as hedging instrument	8	5
Derivatives not designated as hedges
Derivative instruments not designated as hedging instruments, liability, at fair value	45	52
Other noncurrent liabilities [Member]
Derivatives designated as hedges
Derivative liability designated as hedging instrument	8	13
Currency exchange contracts [Member] | Other current assets [Member]
Derivatives not designated as hedges
Derivative instruments not designated as hedging instruments, asset, at fair value	52	47
Currency exchange contracts [Member] | Other current liabilities [Member]
Derivatives not designated as hedges
Derivative instruments not designated as hedging instruments, liability, at fair value	45	52
Fair Value Hedging [Member] | Fixed-to-floating interest rate swaps [Member] | Other current assets [Member]
Derivatives designated as hedges
Derivative asset designated as hedging instrument	0	0
Fair Value Hedging [Member] | Fixed-to-floating interest rate swaps [Member] | Other noncurrent assets [Member]
Derivatives designated as hedges
Derivative asset designated as hedging instrument	122	84
Fair Value Hedging [Member] | Fixed-to-floating interest rate swaps [Member] | Other current liabilities [Member]
Derivatives designated as hedges
Derivative liability designated as hedging instrument	0	0
Fair Value Hedging [Member] | Fixed-to-floating interest rate swaps [Member] | Other noncurrent liabilities [Member]
Derivatives designated as hedges
Derivative liability designated as hedging instrument	0	10
Cash Flow Hedging [Member] | Currency exchange contracts [Member] | Other current assets [Member]
Derivatives designated as hedges
Derivative asset designated as hedging instrument	16	8
Cash Flow Hedging [Member] | Currency exchange contracts [Member] | Other noncurrent assets [Member]
Derivatives designated as hedges
Derivative asset designated as hedging instrument	0	1
Cash Flow Hedging [Member] | Currency exchange contracts [Member] | Other current liabilities [Member]
Derivatives designated as hedges
Derivative liability designated as hedging instrument	8	5
Cash Flow Hedging [Member] | Currency exchange contracts [Member] | Other noncurrent liabilities [Member]
Derivatives designated as hedges
Derivative liability designated as hedging instrument	8	3
Cash Flow Hedging [Member] | Commodity contracts [Member] | Other current assets [Member]
Derivatives designated as hedges
Derivative asset designated as hedging instrument	0	0
Cash Flow Hedging [Member] | Commodity contracts [Member] | Other noncurrent assets [Member]
Derivatives designated as hedges
Derivative asset designated as hedging instrument	0	0
Cash Flow Hedging [Member] | Commodity contracts [Member] | Other current liabilities [Member]
Derivatives designated as hedges
Derivative liability designated as hedging instrument	0	0
Cash Flow Hedging [Member] | Commodity contracts [Member] | Other noncurrent liabilities [Member]
Derivatives designated as hedges
Derivative liability designated as hedging instrument	0	0
Derivatives designated as hedges [Member] | Fair Value Hedging [Member] | Fixed-to-floating interest rate swaps [Member]
Derivatives designated as hedges
Derivative, Notional Amount	3,440	3,440
Derivatives designated as hedges [Member] | Cash Flow Hedging [Member] | Currency exchange contracts [Member]
Derivatives designated as hedges
Derivative, Notional Amount	412	432
Derivatives designated as hedges [Member] | Cash Flow Hedging [Member] | Commodity contracts [Member]
Derivatives designated as hedges
Derivative, Notional Amount	1	1
Derivatives not designated as hedges [Member] | Currency exchange contracts [Member]
Derivatives designated as hedges
Derivative, Notional Amount	4,313	4,447
Minimum [Member] | Derivatives designated as hedges [Member] | Fair Value Hedging [Member] | Fixed-to-floating interest rate swaps [Member]
Derivatives designated as hedges
Derivative, Term of Contract	2 years	2 years
Minimum [Member] | Derivatives designated as hedges [Member] | Cash Flow Hedging [Member] | Currency exchange contracts [Member]
Derivatives designated as hedges
Derivative, Term of Contract	1 month	1 month
Minimum [Member] | Derivatives designated as hedges [Member] | Cash Flow Hedging [Member] | Commodity contracts [Member]
Derivatives designated as hedges
Derivative, Term of Contract	1 month	1 month
Minimum [Member] | Derivatives not designated as hedges [Member] | Currency exchange contracts [Member]
Derivatives designated as hedges
Derivative, Term of Contract	1 month	1 month
Maximum [Member] | Derivatives designated as hedges [Member] | Fair Value Hedging [Member] | Fixed-to-floating interest rate swaps [Member]
Derivatives designated as hedges
Derivative, Term of Contract	20 years	19 years
Maximum [Member] | Derivatives designated as hedges [Member] | Cash Flow Hedging [Member] | Currency exchange contracts [Member]
Derivatives designated as hedges
Derivative, Term of Contract	36 months	36 months
Maximum [Member] | Derivatives designated as hedges [Member] | Cash Flow Hedging [Member] | Commodity contracts [Member]
Derivatives designated as hedges
Derivative, Term of Contract	12 months	12 months
Maximum [Member] | Derivatives not designated as hedges [Member] | Currency exchange contracts [Member]
Derivatives designated as hedges
Derivative, Term of Contract	12 months	12 months

XML

Condensed Consolidating Financial Information (Tables)

3 Months Ended

Mar. 31, 2015

Condensed Financial Statements, Captions [Line Items]

Condensed Consolidating Financial Statements [Table Text Block]

CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME FOR THE THREE MONTHS ENDED MARCH 31, 2015
	Eaton Corporation plc			Eaton Corporation			Guarantors			Other subsidiaries			Consolidating adjustments			Total
Net sales	$	—		$	1,702		$	1,696		$	3,116		$	(1,291	)	$	5,223
Cost of products sold	—			1,310			1,295			2,277			(1,289		)	3,593
Selling and administrative expense	2			377			176			360			—			915
Research and development expense	—			71			45			42			—			158
Interest expense (income) - net	—			54			6			(5		)	2			57
Other (income) loss - net	—			(5		)	(1		)	1			—			(5		)
Equity in earnings of    subsidiaries, net of tax	(545		)	(211		)	(713		)	(129		)	1,598			—
Intercompany expense (income) - net	77			(41		)	271			(307		)	—			—
Income before income taxes	466			147			617			877			(1,602		)	505
Income tax (benefit) expense	—			(22		)	21			41			(2		)	38
Net income	466			169			596			836			(1,600		)	467
Less net income for    noncontrolling interests	—			—			—			(1		)	—			(1		)
Net income attributable to    Eaton ordinary shareholders	$	466		$	169		$	596		$	835		$	(1,600	)	$	466
Other comprehensive (loss) income	$	(634	)	$	46		$	(620	)	$	(746	)	$	1,320		$	(634	)
Total comprehensive (loss) income attributable to Eaton   ordinary shareholders	$	(168	)	$	215		$	(24	)	$	89		$	(280	)	$	(168	)

CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME FOR THE THREE MONTHS ENDED MARCH 31, 2014
	Eaton Corporation plc			Eaton Corporation			Guarantors			Other subsidiaries			Consolidating adjustments			Total
Net sales	$	—		$	1,667		$	1,641		$	3,291		$	(1,107	)	$	5,492
Cost of products sold	—			1,342			1,218			2,392			(1,094		)	3,858
Selling and administrative expense	2			361			200			399			—			962
Research and development expense	—			60			50			52			—			162
Interest expense (income) - net	—			59			7			(6		)	2			62
Other expense (income) - net	—			5			3			(13		)	—			(5		)
Equity in (earnings) loss of    subsidiaries, net of tax	(469		)	7			(491		)	45			908			—
Intercompany expense (income) - net	28			(70		)	132			(90		)	—			—
Income (loss) before income taxes	439			(97		)	522			512			(923		)	453
Income tax (benefit) expense	—			(14		)	(7		)	38			(5		)	12
Net income (loss)	439			(83		)	529			474			(918		)	441
Less net income for    noncontrolling interests	—			—			—			(2		)	—			(2		)
Net income (loss) attributable to    Eaton ordinary shareholders	$	439		$	(83	)	$	529		$	472		$	(918	)	$	439
Other comprehensive income (loss)	$	3		$	30		$	25		$	(46	)	$	(9	)	$	3
Total comprehensive income (loss) attributable to Eaton ordinary shareholders	$	442		$	(53	)	$	554		$	426		$	(927	)	$	442

CONDENSED CONSOLIDATING BALANCE SHEETS MARCH 31, 2015
	Eaton Corporation plc		Eaton Corporation		Guarantors		Other subsidiaries		Consolidating adjustments			Total
Assets
Current assets
Cash	$	7	$	36	$	257	$	363	$	—		$	663
Short-term investments	—		—		1		138		—			139
Accounts receivable - net	—		557		1,013		2,163		—			3,733
Intercompany accounts    receivable	4		557		3,835		3,390		(7,786		)	—
Inventory	—		384		668		1,425		(53		)	2,424
Deferred income taxes	—		355		134		87		—			576
Prepaid expenses and    other current assets	—		122		41		248		(6		)	405
Total current assets	11		2,011		5,949		7,814		(7,845		)	7,940
Property, plant and    equipment - net	—		966		747		1,921		—			3,634
Other noncurrent assets
Goodwill	—		1,355		6,256		5,937		—			13,548
Other intangible assets	—		192		3,764		2,361		—			6,317
Deferred income taxes	—		892		2		145		(819		)	220
Investment in subsidiaries	26,508		12,410		57,827		9,184		(105,929		)	—
Intercompany loans receivable	—		7,766		2,112		41,301		(51,179		)	—
Other assets	—		583		132		322		—			1,037
Total assets	$	26,519	$	26,175	$	76,789	$	68,985	$	(165,772	)	$	32,696
Liabilities and    shareholders’ equity
Current liabilities
Short-term debt	$	—	$	250	$	—	$	17	$	—		$	267
Current portion of    long-term debt	—		701		542		1		—			1,244
Accounts payable	—		493		343		1,133		—			1,969
Intercompany accounts payable	59		4,022		2,706		999		(7,786		)	—
Accrued compensation	—		32		44		206		—			282
Other current liabilities	7		712		302		907		(24		)	1,904
Total current liabilities	66		6,210		3,937		3,263		(7,810		)	5,666
Noncurrent liabilities
Long-term debt	—		7,122		687		18		2			7,829
Pension liabilities	—		586		138		806		—			1,530
Other postretirement    benefits liabilities	—		280		135		91		—			506
Deferred income taxes	—		14		1,165		521		(819		)	881
Intercompany loans payable	11,243		2,768		36,310		858		(51,179		)	—
Other noncurrent liabilities	—		420		181		419		—			1,020
Total noncurrent liabilities	11,243		11,190		38,616		2,713		(51,996		)	11,766
Shareholders’ equity
Eaton shareholders' equity	15,210		8,775		34,236		62,963		(105,974		)	15,210
Noncontrolling interests	—		—		—		46		8			54
Total equity	15,210		8,775		34,236		63,009		(105,966		)	15,264
Total liabilities and equity	$	26,519	$	26,175	$	76,789	$	68,985	$	(165,772	)	$	32,696

CONDENSED CONSOLIDATING BALANCE SHEETS DECEMBER 31, 2014
	Eaton Corporation plc		Eaton Corporation		Guarantors		Other subsidiaries		Consolidating adjustments			Total
Assets
Current assets
Cash	$	1	$	173	$	13	$	594	$	—		$	781
Short-term investments	—		—		1		244		—			245
Accounts receivable - net	—		500		955		2,212		—			3,667
Intercompany accounts    receivable	2		759		3,820		4,101		(8,682		)	—
Inventory	—		397		637		1,445		(51		)	2,428
Deferred income taxes	—		368		132		93		—			593
Prepaid expenses and    other current assets	—		96		39		247		4			386
Total current assets	3		2,293		5,597		8,936		(8,729		)	8,100
Property, plant and    equipment - net	—		972		756		2,022		—			3,750
Other noncurrent assets
Goodwill	—		1,355		6,256		6,282		—			13,893
Other intangible assets	—		196		3,811		2,549		—			6,556
Deferred income taxes	—		889		10		137		(808		)	228
Investment in subsidiaries	26,612		12,179		58,687		9,145		(106,623		)	—
Intercompany loans receivable	—		7,542		2,249		40,635		(50,426		)	—
Other assets	—		533		141		328		—			1,002
Total assets	$	26,615	$	25,959	$	77,507	$	70,034	$	(166,586	)	$	33,529
Liabilities and    shareholders’ equity
Current liabilities
Short-term debt	$	—	$	—	$	—	$	2	$	—		$	2
Current portion of    long-term debt	—		702		304		2		—			1,008
Accounts payable	—		475		340		1,125		—			1,940
Intercompany accounts payable	117		4,125		3,449		991		(8,682		)	—
Accrued compensation	—		112		59		249		—			420
Other current liabilities	1		674		340		984		(14		)	1,985
Total current liabilities	118		6,088		4,492		3,353		(8,696		)	5,355
Noncurrent liabilities
Long-term debt	—		7,079		932		13		—			8,024
Pension liabilities	—		726		183		903		—			1,812
Other postretirement    benefits liabilities	—		283		136		94		—			513
Deferred income taxes	—		—		1,160		549		(808		)	901
Intercompany loans payable	10,711		2,723		36,162		830		(50,426		)	—
Other noncurrent liabilities	—		457		183		445		—			1,085
Total noncurrent liabilities	10,711		11,268		38,756		2,834		(51,234		)	12,335
Shareholders’ equity
Eaton shareholders' equity	15,786		8,603		34,259		63,802		(106,664		)	15,786
Noncontrolling interests	—		—		—		45		8			53
Total equity	15,786		8,603		34,259		63,847		(106,656		)	15,839
Total liabilities and equity	$	26,615	$	25,959	$	77,507	$	70,034	$	(166,586	)	$	33,529

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS FOR THE THREE MONTHS ENDED MARCH 31, 2015
	Eaton Corporation plc			Eaton Corporation			Guarantors			Other subsidiaries			Consolidating adjustments			Total
Net cash (used in) provided by    operating activities	$	(82	)	$	(187	)	$	19		$	327		$	—		$	77
Investing activities
Cash paid for acquisitions of businesses, net of cash acquired	—			—			—			(38		)	—			(38		)
Capital expenditures for property,    plant and equipment	—			(21		)	(26		)	(58		)	—			(105		)
Sales of short-term investments - net	—			—			—			99			—			99
Loans to affiliates	—			(154		)	—			(3,482		)	3,636			—
Repayments of loans from affiliates	—			—			11			2,850			(2,861		)	—
Other - net	—			(20		)	19			(8		)	—			(9		)
Net cash (used in) provided by    investing activities	—			(195		)	4			(637		)	775			(53		)
Financing activities
Proceeds from borrowings	—			250			—			16			—			266
Payments on borrowings	—			(2		)	—			(1		)	—			(3		)
Proceeds from borrowings from    affiliates	500			2,982			153			1			(3,636		)	—
Payments on borrowings from    affiliates	(24		)	(2,826		)	—			(11		)	2,861			—
Other intercompany    financing activities	—			(159		)	68			91			—			—
Cash dividends paid	(251		)	—			—			—			—			(251		)
Exercise of employee stock options	33			—			—			—			—			33
Repurchase of shares	(170		)	—			—			—			—			(170		)
Other - net	—			—			—			(2		)	—			(2		)
Net cash provided by (used in)    financing activities	88			245			221			94			(775		)	(127		)
Effect of currency on cash	—			—			—			(15		)	—			(15		)
Total increase (decrease) in cash	6			(137		)	244			(231		)	—			(118		)
Cash at the beginning of the period	1			173			13			594			—			781
Cash at the end of the period	$	7		$	36		$	257		$	363		$	—		$	663

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS FOR THE THREE MONTHS ENDED MARCH 31, 2014
	Eaton Corporation plc			Eaton Corporation			Guarantors			Other subsidiaries			Consolidating adjustments			Total
Net cash (used in) provided by    operating activities	$	(6	)	$	(440	)	$	182		$	276		$	—		$	12
Investing activities
Capital expenditures for property,    plant and equipment	—			(25		)	(29		)	(56		)	—			(110		)
Sales of short-term investments - net	—			—			98			333			—			431
Loans to affiliates	—			(7		)	—			(1,056		)	1,063			—
Repayments of loans from affiliates	—			171			—			814			(985		)	—
Proceeds from sale of business	—			—			—			3			—			3
Other - net	—			(13		)	(1		)	(6		)	—			(20		)
Net cash provided by    investing activities	—			126			68			32			78			304
Financing activities
Payments on borrowings	—			(251		)	—			(6		)	—			(257		)
Proceeds from borrowings from    affiliates	—			946			110			7			(1,063		)	—
Payments on borrowings from    affiliates	—			(510		)	(304		)	(171		)	985			—
Other intercompany    financing activities	217			104			(54		)	(267		)	—			—
Cash dividends paid	(229		)	—			—			—			—			(229		)
Exercise of employee stock options	23			—			—			—			—			23
Excess tax benefit from    equity-based compensation	—			20			—			—			—			20
Net cash provided by (used in)    financing activities	11			309			(248		)	(437		)	(78		)	(443		)
Effect of currency on cash	—			—			—			(4		)	—			(4		)
Total increase (decrease) in cash	5			(5		)	2			(133		)	—			(131		)
Cash at the beginning of the period	3			51			10			851			—			915
Cash at the end of the period	$	8		$	46		$	12		$	718		$	—		$	784

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Business Segment Information (Tables)

3 Months Ended

Mar. 31, 2015

Segment Reporting [Abstract]

Business Segment Information

	Three months ended March 31
	2015			2014
Net sales
Electrical Products	$	1,691		$	1,726
Electrical Systems and Services	1,448			1,524
Hydraulics	665			782
Aerospace	464			464
Vehicle	955			996
Total net sales	$	5,223		$	5,492
Segment operating profit
Electrical Products	$	260		$	250
Electrical Systems and Services	186			169
Hydraulics	66			108
Aerospace	77			62
Vehicle	164			151
Total segment operating profit	753			740
Corporate
Amortization of intangible assets	(102		)	(110		)
Interest expense - net	(57		)	(62		)
Pension and other postretirement benefits expense	(28		)	(51		)
Other corporate expense - net	(61		)	(64		)
Income before income taxes	505			453
Income tax expense	38			12
Net income	467			441
Less net income for noncontrolling interests	(1		)	(2		)
Net income attributable to Eaton ordinary shareholders	$	466		$	439

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Derivative Financial Instruments and Hedging Activities Amounts Recognized in Net Income (Details) (Interest expense - net [Member], Fair Value Hedging [Member], USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Derivative Instruments, Gain (Loss) [Line Items]
Amounts recognized in net income	$ 0	$ 0
Fixed-to-floating interest rate swaps [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Amounts recognized in net income	48	29
Related Long Term Debt Converted To Floating Interest Rates By Interest Rate Swaps [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Amounts recognized in net income	$ (48)	$ (29)

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Acquisition and Sale of Businesses Sale of Business (Details) (Aerospace [Member], USD $) In Millions, unless otherwise specified	0 Months Ended
	May 09, 2014
Aerospace [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Sale of Aerospace Power Distribution Management Solutions and Integrated Cockpit Solutions	$ 270
Gain on sale of businesses, pre-tax	$ 154

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Acquisition Integration Charges (Details) (USD $) In Millions, except Per Share data, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Acquisition integration charges [Line Items]
Acquisition integration charges	$ 11	$ 66
Acquisition integration after tax charges	7	44
Acquisition integration charges per ordinary share	$ 0.02	$ 0.09
Electrical Products [Member]
Acquisition integration charges [Line Items]
Acquisition integration charges	6	29
Electrical Systems and Services [Member]
Acquisition integration charges [Line Items]
Acquisition integration charges	3	26
Hydraulics [Member]
Acquisition integration charges [Line Items]
Acquisition integration charges	1	4
Operating Segments [Member]
Acquisition integration charges [Line Items]
Acquisition integration charges	10	59
Corporate [Member]
Acquisition integration charges [Line Items]
Acquisition integration charges	$ 1	$ 7

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Acquisition Integration Charges

3 Months Ended

Mar. 31, 2015

Acquisitions Integration Charges [Abstract]

ACQUISITION INTEGRATION CHARGES

ACQUISITION INTEGRATION CHARGES

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

	Three months ended March 31
	2015		2014
Acquisition integration charges
Electrical Products	$	6	$	29
Electrical Systems and Services	3		26
Hydraulics	1		4
Total business segments	10		59
Corporate	1		7
Total acquisition integration charges before income taxes	$	11	$	66
Total after income taxes	$	7	$	44
Per ordinary share - diluted	$	0.02	$	0.09

Business segment integration charges during the first three months of 2015 and 2014 were related primarily to the integration of Cooper Industries plc (Cooper) to gain efficiencies in selling, marketing, traditional back-office functions and manufacturing and distribution. These charges were included in Cost of products sold or Selling and administrative expense, as appropriate. In Business Segment Information the charges reduced Operating profit of the related business segment. See Note 13 for additional information about business segments.

Corporate integration charges in 2015 and 2014 were related to the acquisition of Cooper. These charges were included in Selling and administrative expense. In Business Segment Information the charges were included in Other corporate expense - net.

The Cooper integration initiatives are expected to continue throughout 2015.

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Goodwill (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2015
Goodwill [Line Items]
December 31, 2014	$ 13,893
Additions	22
Translation adjustments	(367)
March 31, 2015	13,548
Electrical Products [Member]
Goodwill [Line Items]
December 31, 2014	6,940
Additions	0
Translation adjustments	(206)
March 31, 2015	6,734
Electrical Systems and Services [Member]
Goodwill [Line Items]
December 31, 2014	4,314
Additions	22
Translation adjustments	(98)
March 31, 2015	4,238
Hydraulics [Member]
Goodwill [Line Items]
December 31, 2014	1,327
Additions	0
Translation adjustments	(51)
March 31, 2015	1,276
Aerospace [Member]
Goodwill [Line Items]
December 31, 2014	962
Additions	0
Translation adjustments	(6)
March 31, 2015	956
Vehicle [Member]
Goodwill [Line Items]
December 31, 2014	350
Additions	0
Translation adjustments	(6)
March 31, 2015	$ 344

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Equity-based Compensation Equity-based compensation (Details) (Performance Shares [Member], Maximum [Member])	3 Months Ended
	Mar. 31, 2015
Performance Shares [Member] | Maximum [Member]
Performance share units [Line Items]
Maximum number of ordinary shares to be issued	911,050

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Consolidated Statements of Income (USD $) In Millions, except Per Share data, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Income Statement [Abstract]
Net sales	$ 5,223	$ 5,492
Cost of products sold	3,593	3,858
Selling and administrative expense	915	962
Research and development expense	158	162
Interest expense - net	57	62
Other income - net	(5)	(5)
Income before income taxes	505	453
Income tax expense	38	12
Net income	467	441
Less net income for noncontrolling interests	(1)	(2)
Net income attributable to Eaton ordinary shareholders	$ 466	$ 439
Net income per ordinary share
Diluted	$ 0.99	$ 0.92
Basic	$ 1.00	$ 0.92
Weighted-average number of ordinary shares outstanding
Diluted	470.0	478.8
Basic	467.9	475.8
Cash dividends declared per ordinary share	$ 0.55	$ 0.49

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Inventory (Details) (USD $) In Millions, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Inventory Disclosure [Abstract]
Raw materials	$ 1,088	$ 924
Work-in-process	295	422
Finished goods	1,161	1,201
Inventory at FIFO	2,544	2,547
Excess of FIFO over LIFO cost	(120)	(119)
Total inventory	$ 2,424	$ 2,428

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Basis of Presentation

3 Months Ended

Mar. 31, 2015

Organization, Consolidation and Presentation of Financial Statements [Abstract]

BASIS OF PRESENTATION

BASIS OF PRESENTATION

The accompanying unaudited condensed consolidated financial statements of Eaton Corporation plc (Eaton or the Company) have been prepared in accordance with generally accepted accounting principles for interim financial information, the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by United States generally accepted accounting principles (US GAAP) for complete financial statements. However, in the opinion of management, all adjustments (consisting of normal recurring accruals) have been made that are necessary for a fair presentation of the condensed consolidated financial statements for the interim periods.

This Form 10-Q should be read in conjunction with the consolidated financial statements and related notes included in Eaton’s 2014 Form 10-K. The interim period results are not necessarily indicative of the results to be expected for the full year. Management has evaluated subsequent events through the date this Form 10-Q was filed with the Securities Exchange Commission.

Certain prior year amounts have been reclassified to conform to the current year presentation.

Recently Issued Accounting Pronouncements

In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers (ASU 2014-09). This accounting standard supersedes all existing US GAAP revenue recognition guidance. Under ASU 2014-09, a company will recognize revenue when it transfers the control of promised goods or services to customers in an amount that reflects the consideration which the company expects to collect in exchange for those goods or services. ASU 2014-09 will require additional disclosures in the notes to the consolidated financial statements and is effective for annual and interim reporting periods beginning after December 15, 2016. In April 2015, the FASB proposed to defer the effective date of the new standard for one year. If the proposal is approved, then early adoption as of the original effective date would be permitted. Eaton is evaluating the impact of ASU 2014-09 and an estimate of the impact to the consolidated financial statements cannot be made at this time.

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Income Taxes (Details)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Income Tax Disclosure [Abstract]
Effective tax rate	8.00%	3.00%

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Goodwill (Tables)

3 Months Ended

Mar. 31, 2015

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Goodwill

A summary of goodwill follows:

	Electrical Products			Electrical Systems and Services			Hydraulics			Aerospace			Vehicle			Total
December 31, 2014	$	6,940		$	4,314		$	1,327		$	962		$	350		$	13,893
Additions	—			22			—			—			—			22
Translation adjustments	(206		)	(98		)	(51		)	(6		)	(6		)	(367		)
March 31, 2015	$	6,734		$	4,238		$	1,276		$	956		$	344		$	13,548

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Equity Changes in Shareholders's Equity (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Changes in Shareholders' equity
Balance at December 31, 2014	$ 15,839
Net income	467	441
Other comprehensive loss	(634)	3
Cash dividends paid and accrued	(257)
Issuance of shares under equity-based compensation plans - net	19
Repurchase of shares	(170)
Balance at March 31, 2015	15,264
Eaton shareholders' equity [Member]
Changes in Shareholders' equity
Balance at December 31, 2014	15,786
Net income	466
Other comprehensive loss	(634)
Cash dividends paid and accrued	(257)
Issuance of shares under equity-based compensation plans - net	19
Repurchase of shares	(170)
Balance at March 31, 2015	15,210
Noncontrolling interests [Member]
Changes in Shareholders' equity
Balance at December 31, 2014	53
Net income	1
Other comprehensive loss	0
Cash dividends paid and accrued	0
Issuance of shares under equity-based compensation plans - net	0
Repurchase of shares	0
Balance at March 31, 2015	54
2013 Program [Member]
Stock Repurchase Program, Number of Shares Authorized to be Repurchased	40
Stock Repurchased During Period, Shares	2.4
Changes in Shareholders' equity
Repurchase of shares	$ (170)

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Equity (Tables)

3 Months Ended

Mar. 31, 2015

Stockholders' Equity Note [Abstract]

Changes in Shareholders' equity

The changes in Shareholders’ equity follow:

	Eaton shareholders’ equity			Noncontrolling interests		Total equity
Balance at December 31, 2014	$	15,786		$	53	$	15,839
Net income	466			1		467
Other comprehensive loss	(634		)	—		(634		)
Cash dividends paid and accrued	(257		)	—		(257		)
Issuance of shares under equity-based compensation plans - net	19			—		19
Repurchase of shares	(170		)	—		(170		)
Balance at March 31, 2015	$	15,210		$	54	$	15,264

Schedule of Accumulated Other Comprehensive Loss [Table Text Block]

The changes in Accumulated other comprehensive loss follow:

	Currency translation and related hedging instruments			Pensions and other postretirement benefits			Cash flow hedges			Total
Balance at December 31, 2014	$	(1,414	)	$	(1,485	)	$	—		$	(2,899	)
Other comprehensive (loss) income     before reclassifications	(720		)	51			1			(668		)
Amounts reclassified from Accumulated other    comprehensive loss	—			35			(1		)	34
Net current-period Other comprehensive    (loss) income	(720		)	86			—			(634		)
Balance at March 31, 2015	$	(2,134	)	$	(1,399	)	$	—		$	(3,533	)

Reclassification out of accumulated other comprehensive loss [Table Text Block]

The reclassifications out of Accumulated other comprehensive loss follow:

	Three months ended March 31, 2015			Consolidated statements of income classification
Amortization of pensions and other postretirement benefits items
Actuarial loss and prior service cost	$	(54	)	1
Tax benefit	19
Total, net of tax	(35		)
Gains and (losses) on cash flow hedges
Currency exchange contracts	2			Cost of products sold
Tax expense	(1		)
Total, net of tax	1
Total reclassifications for the period	$	(34	)

Calculation of net income per ordinary share attributable to shareholders

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

	Three months ended March 31
(Shares in millions)	2015		2014
Net income attributable to Eaton ordinary shareholders	$	466	$	439
Weighted-average number of ordinary shares outstanding - diluted	470.0		478.8
Less dilutive effect of equity-based compensation	2.1		3.0
Weighted-average number of ordinary shares outstanding - basic	467.9		475.8
Net income per ordinary share
Diluted	$	0.99	$	0.92
Basic	1.00		0.92

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Acquisition and Sale of Businesses

3 Months Ended

Mar. 31, 2015

Business Combinations [Abstract]

ACQUISITION AND SALE OF BUSINESSES

ACQUISITION AND SALE OF BUSINESSES

Acquisition of UK Safety Technology Manufacturer Oxalis Group Ltd.

On January 12, 2015, Eaton acquired Oxalis Group Ltd. (Oxalis). Oxalis is a manufacturer of closed-circuit television camera stations, public address and general alarm systems and other electrical products for the hazardous area, marine and industrial communications markets. Oxalis is reported within the Electrical Systems and Services business segment.

Sale of Aerospace Power Distribution Management Solutions and Integrated Cockpit Solutions

On May 9, 2014, Eaton sold the Aerospace Power Distribution Management Solutions and Integrated Cockpit Solutions businesses to Safran for $270, which resulted in a pre-tax gain of $154.

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Consolidated Statements of Comprehensive Income (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Net income	$ 467	$ 441
Less net income for noncontrolling interests	(1)	(2)
Net income attributable to Eaton ordinary shareholders	466	439
Other comprehensive (loss) income, net of tax
Currency translation and related hedging instruments	(720)	(47)
Pensions and other postretirement benefits	86	50
Other comprehensive (loss) income attributable to Eaton ordinary shareholders	(634)	3
Total comprehensive (loss) income attributable to Eaton ordinary shareholders	$ (168)	$ 442

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Inventory

3 Months Ended

Mar. 31, 2015

Inventory Disclosure [Abstract]

INVENTORY

INVENTORY

The components of inventory follow:

	March 31, 2015			December 31, 2014
Raw materials	$	1,088		$	924
Work-in-process	295			422
Finished goods	1,161			1,201
Inventory at FIFO	2,544			2,547
Excess of FIFO over LIFO cost	(120		)	(119		)
Total inventory	$	2,424		$	2,428

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Document and Entity Information Document In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2015
Entity Information [Line Items]
Entity Registrant Name	Eaton Corp plc
Trading Symbol	ETN
Entity Central Index Key	0001551182
Document Type	10-Q
Document Period End Date	Mar. 31, 2015
Amendment Flag	false
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	Q1
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding	467.1

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Business Segment Information

3 Months Ended

Mar. 31, 2015

Segment Reporting [Abstract]

BUSINESS SEGMENT INFORMATION

BUSINESS SEGMENT INFORMATION

Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated on a regular basis by the chief operating decision maker, or decision making group, in deciding how to allocate resources to an individual segment and in assessing performance. Eaton’s operating segments are Electrical Products, Electrical Systems and Services, Hydraulics, Aerospace and Vehicle. Operating profit includes the operating profit from intersegment sales. For additional information regarding Eaton’s business segments, see Note 14 to the Consolidated Financial Statements contained in the 2014 Form 10-K.

	Three months ended March 31
	2015			2014
Net sales
Electrical Products	$	1,691		$	1,726
Electrical Systems and Services	1,448			1,524
Hydraulics	665			782
Aerospace	464			464
Vehicle	955			996
Total net sales	$	5,223		$	5,492
Segment operating profit
Electrical Products	$	260		$	250
Electrical Systems and Services	186			169
Hydraulics	66			108
Aerospace	77			62
Vehicle	164			151
Total segment operating profit	753			740
Corporate
Amortization of intangible assets	(102		)	(110		)
Interest expense - net	(57		)	(62		)
Pension and other postretirement benefits expense	(28		)	(51		)
Other corporate expense - net	(61		)	(64		)
Income before income taxes	505			453
Income tax expense	38			12
Net income	467			441
Less net income for noncontrolling interests	(1		)	(2		)
Net income attributable to Eaton ordinary shareholders	$	466		$	439

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Condensed Consolidated Balance Sheets (USD $) In Millions, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014	Mar. 31, 2014	Dec. 31, 2013
Current assets
Cash	$ 663	$ 781	$ 784	$ 915
Short-term investments	139	245
Accounts receivable - net	3,733	3,667
Inventory	2,424	2,428
Deferred income taxes	576	593
Prepaid expenses and other current assets	405	386
Total current assets	7,940	8,100
Property, plant and equipment - net	3,634	3,750
Other noncurrent assets
Goodwill	13,548	13,893
Other intangible assets	6,317	6,556
Deferred income taxes	220	228
Other assets	1,037	1,002
Total assets	32,696	33,529
Current liabilities
Short-term debt	267	2
Current portion of long-term debt	1,244	1,008
Accounts payable	1,969	1,940
Accrued compensation	282	420
Other current liabilities	1,904	1,985
Total current liabilities	5,666	5,355
Noncurrent liabilities
Long-term debt	7,829	8,024
Pension liabilities	1,530	1,812
Other postretirement benefits liabilities	506	513
Deferred income taxes	881	901
Other noncurrent liabilities	1,020	1,085
Total noncurrent liabilities	11,766	12,335
Shareholders' equity
Eaton shareholders' equity	15,210	15,786
Noncontrolling interests	54	53
Total equity	15,264	15,839
Total liabilities and equity	$ 32,696	$ 33,529

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Income Taxes

3 Months Ended

Mar. 31, 2015

Income Tax Disclosure [Abstract]

INCOME TAXES

INCOME TAXES

The effective income tax rate for the first quarter of 2015 was expense of 8% compared to expense of 3% for the first quarter of 2014. The increase in the effective income tax rate in first quarter of 2015 is primarily due to more income earned in higher tax jurisdictions including the United States.

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Legal Contingencies

3 Months Ended

Mar. 31, 2015

Commitments and Contingencies Disclosure [Abstract]

LEGAL CONTINGENCIES

LEGAL CONTINGENCIES

Eaton is subject to a broad range of claims, administrative and legal proceedings such as lawsuits that relate to contractual allegations, tax audits, patent infringement, personal injuries, antitrust matters and employment-related matters. Eaton is also subject to asbestos claims from historic products which may have contained asbestos. Historically, significant insurance coverage has been available to cover costs associated with these claims. Although it is not possible to predict with certainty the outcome or cost of these matters, the Company believes they will not have a material adverse effect on the consolidated financial statements.

In 2010, a Brazilian court held that a judgment obtained by a Brazilian company, Raysul, against another Brazilian company, Saturnia, which was sold by Eaton in 2006, could be enforced against Eaton Ltda. and Eaton Holding S.à.r.l. This judgment is based on an alleged violation of an agency agreement between Raysul and Saturnia. At March 31, 2015, the Company has a total accrual of 85 Brazilian Reais related to this matter ($26 based on current exchange rates), comprised of 60 Brazilian Reais recognized in the fourth quarter of 2010 ($18 based on current exchange rates) with an additional 25 Brazilian Reais recognized through March 31, 2015 ($8 based on current exchange rates). In 2010, Eaton filed motions for clarification with the Brazilian court of appeals which were denied on April 6, 2011. Eaton filed appeals on various issues to the Superior Court of Justice in Brasilia. In April 2013, the Superior Court of Justice ruled in favor of Raysul. Additional motions for clarification have been filed with the Superior Court of Justice in Brasilia and were denied. On February 2, 2015, a final appeal was filed with the Superior Court of Justice in Brasilia. The Company expects that any sum it may be required to pay in connection with this matter will not exceed the amount of the recorded liability.

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Retirement Benefits Plans (Tables)

3 Months Ended

Mar. 31, 2015

Compensation and Retirement Disclosure [Abstract]

Retirement benefits plans expense

The components of retirement benefits expense follow:

	United States pension benefit expense						Non-United States pension benefit expense						Other postretirement benefits expense
	Three months ended March 31
	2015			2014			2015			2014			2015			2014
Service cost	$	31		$	29		$	18		$	16		$	2		$	4
Interest cost	39			40			18			22			6			9
Expected return on plan assets	(66		)	(61		)	(25		)	(25		)	(1		)	(1		)
Amortization	30			23			10			7			—			2
	34			31			21			20			7			14
Settlement loss	14			34			—			—			—			—
Total expense	$	48		$	65		$	21		$	20		$	7		$	14

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Condensed Consolidating Financial Information (Notes)

3 Months Ended

Mar. 31, 2015

Condensed Financial Statements, Captions [Line Items]

CONDENSED CONSOLIDATING FINANCIAL STATEMENTS

CONDENSED CONSOLIDATING FINANCIAL STATEMENTS

On November 20, 2012, Eaton Corporation issued senior notes totaling $4,900 to finance part of the cash portion of the acquisition of Cooper. On November 14, 2013, the senior notes were exchanged for senior notes registered under the Securities Act of 1933 (the Senior Notes). Eaton and certain other of Eaton's 100% owned direct and indirect subsidiaries (the Guarantors) fully and unconditionally guaranteed (subject, in case of the Guarantors, other than Eaton, to customary release provisions as described below), on a joint and several basis, the Senior Notes. The following condensed consolidating financial statements are included so that separate financial statements of Eaton, Eaton Corporation and each of the Guarantors are not required to be filed with the Securities and Exchange Commission. The consolidating adjustments primarily relate to eliminations of investments in subsidiaries and intercompany balances and transactions. The condensed consolidating financial statements present investments in subsidiaries using the equity method of accounting.

The guarantee of a Guarantor that is not a parent of the issuer will be automatically and unconditionally released and discharged in the event of any sale of the Guarantor or of all or substantially all of its assets, or in connection with the release or termination of the Guarantor as a guarantor under all other U.S. debt securities or U.S. syndicated credit facilities, subject to limitations set forth in the indenture. The guarantee of a Guarantor that is a direct or indirect parent of the issuer will only be automatically and unconditionally released and discharged in connection with the release or termination of such Guarantor as a guarantor under all other debt securities or syndicated credit facilities (in both cases, U.S. or otherwise), subject to limitations set forth in the indenture.

During the third quarter of 2014, the Company undertook certain steps to restructure ownership of various subsidiaries. The transactions were entirely among wholly-owned subsidiaries under the common control of Eaton. This restructuring has been reflected as of the beginning of the earliest period presented below.

CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME FOR THE THREE MONTHS ENDED MARCH 31, 2015
	Eaton Corporation plc			Eaton Corporation			Guarantors			Other subsidiaries			Consolidating adjustments			Total
Net sales	$	—		$	1,702		$	1,696		$	3,116		$	(1,291	)	$	5,223
Cost of products sold	—			1,310			1,295			2,277			(1,289		)	3,593
Selling and administrative expense	2			377			176			360			—			915
Research and development expense	—			71			45			42			—			158
Interest expense (income) - net	—			54			6			(5		)	2			57
Other (income) loss - net	—			(5		)	(1		)	1			—			(5		)
Equity in earnings of    subsidiaries, net of tax	(545		)	(211		)	(713		)	(129		)	1,598			—
Intercompany expense (income) - net	77			(41		)	271			(307		)	—			—
Income before income taxes	466			147			617			877			(1,602		)	505
Income tax (benefit) expense	—			(22		)	21			41			(2		)	38
Net income	466			169			596			836			(1,600		)	467
Less net income for    noncontrolling interests	—			—			—			(1		)	—			(1		)
Net income attributable to    Eaton ordinary shareholders	$	466		$	169		$	596		$	835		$	(1,600	)	$	466
Other comprehensive (loss) income	$	(634	)	$	46		$	(620	)	$	(746	)	$	1,320		$	(634	)
Total comprehensive (loss) income attributable to Eaton   ordinary shareholders	$	(168	)	$	215		$	(24	)	$	89		$	(280	)	$	(168	)

CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME FOR THE THREE MONTHS ENDED MARCH 31, 2014
	Eaton Corporation plc			Eaton Corporation			Guarantors			Other subsidiaries			Consolidating adjustments			Total
Net sales	$	—		$	1,667		$	1,641		$	3,291		$	(1,107	)	$	5,492
Cost of products sold	—			1,342			1,218			2,392			(1,094		)	3,858
Selling and administrative expense	2			361			200			399			—			962
Research and development expense	—			60			50			52			—			162
Interest expense (income) - net	—			59			7			(6		)	2			62
Other expense (income) - net	—			5			3			(13		)	—			(5		)
Equity in (earnings) loss of    subsidiaries, net of tax	(469		)	7			(491		)	45			908			—
Intercompany expense (income) - net	28			(70		)	132			(90		)	—			—
Income (loss) before income taxes	439			(97		)	522			512			(923		)	453
Income tax (benefit) expense	—			(14		)	(7		)	38			(5		)	12
Net income (loss)	439			(83		)	529			474			(918		)	441
Less net income for    noncontrolling interests	—			—			—			(2		)	—			(2		)
Net income (loss) attributable to    Eaton ordinary shareholders	$	439		$	(83	)	$	529		$	472		$	(918	)	$	439
Other comprehensive income (loss)	$	3		$	30		$	25		$	(46	)	$	(9	)	$	3
Total comprehensive income (loss) attributable to Eaton ordinary shareholders	$	442		$	(53	)	$	554		$	426		$	(927	)	$	442

CONDENSED CONSOLIDATING BALANCE SHEETS MARCH 31, 2015
	Eaton Corporation plc		Eaton Corporation		Guarantors		Other subsidiaries		Consolidating adjustments			Total
Assets
Current assets
Cash	$	7	$	36	$	257	$	363	$	—		$	663
Short-term investments	—		—		1		138		—			139
Accounts receivable - net	—		557		1,013		2,163		—			3,733
Intercompany accounts    receivable	4		557		3,835		3,390		(7,786		)	—
Inventory	—		384		668		1,425		(53		)	2,424
Deferred income taxes	—		355		134		87		—			576
Prepaid expenses and    other current assets	—		122		41		248		(6		)	405
Total current assets	11		2,011		5,949		7,814		(7,845		)	7,940
Property, plant and    equipment - net	—		966		747		1,921		—			3,634
Other noncurrent assets
Goodwill	—		1,355		6,256		5,937		—			13,548
Other intangible assets	—		192		3,764		2,361		—			6,317
Deferred income taxes	—		892		2		145		(819		)	220
Investment in subsidiaries	26,508		12,410		57,827		9,184		(105,929		)	—
Intercompany loans receivable	—		7,766		2,112		41,301		(51,179		)	—
Other assets	—		583		132		322		—			1,037
Total assets	$	26,519	$	26,175	$	76,789	$	68,985	$	(165,772	)	$	32,696
Liabilities and    shareholders’ equity
Current liabilities
Short-term debt	$	—	$	250	$	—	$	17	$	—		$	267
Current portion of    long-term debt	—		701		542		1		—			1,244
Accounts payable	—		493		343		1,133		—			1,969
Intercompany accounts payable	59		4,022		2,706		999		(7,786		)	—
Accrued compensation	—		32		44		206		—			282
Other current liabilities	7		712		302		907		(24		)	1,904
Total current liabilities	66		6,210		3,937		3,263		(7,810		)	5,666
Noncurrent liabilities
Long-term debt	—		7,122		687		18		2			7,829
Pension liabilities	—		586		138		806		—			1,530
Other postretirement    benefits liabilities	—		280		135		91		—			506
Deferred income taxes	—		14		1,165		521		(819		)	881
Intercompany loans payable	11,243		2,768		36,310		858		(51,179		)	—
Other noncurrent liabilities	—		420		181		419		—			1,020
Total noncurrent liabilities	11,243		11,190		38,616		2,713		(51,996		)	11,766
Shareholders’ equity
Eaton shareholders' equity	15,210		8,775		34,236		62,963		(105,974		)	15,210
Noncontrolling interests	—		—		—		46		8			54
Total equity	15,210		8,775		34,236		63,009		(105,966		)	15,264
Total liabilities and equity	$	26,519	$	26,175	$	76,789	$	68,985	$	(165,772	)	$	32,696

CONDENSED CONSOLIDATING BALANCE SHEETS DECEMBER 31, 2014
	Eaton Corporation plc		Eaton Corporation		Guarantors		Other subsidiaries		Consolidating adjustments			Total
Assets
Current assets
Cash	$	1	$	173	$	13	$	594	$	—		$	781
Short-term investments	—		—		1		244		—			245
Accounts receivable - net	—		500		955		2,212		—			3,667
Intercompany accounts    receivable	2		759		3,820		4,101		(8,682		)	—
Inventory	—		397		637		1,445		(51		)	2,428
Deferred income taxes	—		368		132		93		—			593
Prepaid expenses and    other current assets	—		96		39		247		4			386
Total current assets	3		2,293		5,597		8,936		(8,729		)	8,100
Property, plant and    equipment - net	—		972		756		2,022		—			3,750
Other noncurrent assets
Goodwill	—		1,355		6,256		6,282		—			13,893
Other intangible assets	—		196		3,811		2,549		—			6,556
Deferred income taxes	—		889		10		137		(808		)	228
Investment in subsidiaries	26,612		12,179		58,687		9,145		(106,623		)	—
Intercompany loans receivable	—		7,542		2,249		40,635		(50,426		)	—
Other assets	—		533		141		328		—			1,002
Total assets	$	26,615	$	25,959	$	77,507	$	70,034	$	(166,586	)	$	33,529
Liabilities and    shareholders’ equity
Current liabilities
Short-term debt	$	—	$	—	$	—	$	2	$	—		$	2
Current portion of    long-term debt	—		702		304		2		—			1,008
Accounts payable	—		475		340		1,125		—			1,940
Intercompany accounts payable	117		4,125		3,449		991		(8,682		)	—
Accrued compensation	—		112		59		249		—			420
Other current liabilities	1		674		340		984		(14		)	1,985
Total current liabilities	118		6,088		4,492		3,353		(8,696		)	5,355
Noncurrent liabilities
Long-term debt	—		7,079		932		13		—			8,024
Pension liabilities	—		726		183		903		—			1,812
Other postretirement    benefits liabilities	—		283		136		94		—			513
Deferred income taxes	—		—		1,160		549		(808		)	901
Intercompany loans payable	10,711		2,723		36,162		830		(50,426		)	—
Other noncurrent liabilities	—		457		183		445		—			1,085
Total noncurrent liabilities	10,711		11,268		38,756		2,834		(51,234		)	12,335
Shareholders’ equity
Eaton shareholders' equity	15,786		8,603		34,259		63,802		(106,664		)	15,786
Noncontrolling interests	—		—		—		45		8			53
Total equity	15,786		8,603		34,259		63,847		(106,656		)	15,839
Total liabilities and equity	$	26,615	$	25,959	$	77,507	$	70,034	$	(166,586	)	$	33,529

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS FOR THE THREE MONTHS ENDED MARCH 31, 2015
	Eaton Corporation plc			Eaton Corporation			Guarantors			Other subsidiaries			Consolidating adjustments			Total
Net cash (used in) provided by    operating activities	$	(82	)	$	(187	)	$	19		$	327		$	—		$	77
Investing activities
Cash paid for acquisitions of businesses, net of cash acquired	—			—			—			(38		)	—			(38		)
Capital expenditures for property,    plant and equipment	—			(21		)	(26		)	(58		)	—			(105		)
Sales of short-term investments - net	—			—			—			99			—			99
Loans to affiliates	—			(154		)	—			(3,482		)	3,636			—
Repayments of loans from affiliates	—			—			11			2,850			(2,861		)	—
Other - net	—			(20		)	19			(8		)	—			(9		)
Net cash (used in) provided by    investing activities	—			(195		)	4			(637		)	775			(53		)
Financing activities
Proceeds from borrowings	—			250			—			16			—			266
Payments on borrowings	—			(2		)	—			(1		)	—			(3		)
Proceeds from borrowings from    affiliates	500			2,982			153			1			(3,636		)	—
Payments on borrowings from    affiliates	(24		)	(2,826		)	—			(11		)	2,861			—
Other intercompany    financing activities	—			(159		)	68			91			—			—
Cash dividends paid	(251		)	—			—			—			—			(251		)
Exercise of employee stock options	33			—			—			—			—			33
Repurchase of shares	(170		)	—			—			—			—			(170		)
Other - net	—			—			—			(2		)	—			(2		)
Net cash provided by (used in)    financing activities	88			245			221			94			(775		)	(127		)
Effect of currency on cash	—			—			—			(15		)	—			(15		)
Total increase (decrease) in cash	6			(137		)	244			(231		)	—			(118		)
Cash at the beginning of the period	1			173			13			594			—			781
Cash at the end of the period	$	7		$	36		$	257		$	363		$	—		$	663

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS FOR THE THREE MONTHS ENDED MARCH 31, 2014
	Eaton Corporation plc			Eaton Corporation			Guarantors			Other subsidiaries			Consolidating adjustments			Total
Net cash (used in) provided by    operating activities	$	(6	)	$	(440	)	$	182		$	276		$	—		$	12
Investing activities
Capital expenditures for property,    plant and equipment	—			(25		)	(29		)	(56		)	—			(110		)
Sales of short-term investments - net	—			—			98			333			—			431
Loans to affiliates	—			(7		)	—			(1,056		)	1,063			—
Repayments of loans from affiliates	—			171			—			814			(985		)	—
Proceeds from sale of business	—			—			—			3			—			3
Other - net	—			(13		)	(1		)	(6		)	—			(20		)
Net cash provided by    investing activities	—			126			68			32			78			304
Financing activities
Payments on borrowings	—			(251		)	—			(6		)	—			(257		)
Proceeds from borrowings from    affiliates	—			946			110			7			(1,063		)	—
Payments on borrowings from    affiliates	—			(510		)	(304		)	(171		)	985			—
Other intercompany    financing activities	217			104			(54		)	(267		)	—			—
Cash dividends paid	(229		)	—			—			—			—			(229		)
Exercise of employee stock options	23			—			—			—			—			23
Excess tax benefit from    equity-based compensation	—			20			—			—			—			20
Net cash provided by (used in)    financing activities	11			309			(248		)	(437		)	(78		)	(443		)
Effect of currency on cash	—			—			—			(4		)	—			(4		)
Total increase (decrease) in cash	5			(5		)	2			(133		)	—			(131		)
Cash at the beginning of the period	3			51			10			851			—			915
Cash at the end of the period	$	8		$	46		$	12		$	718		$	—		$	784

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Fair Value Measurements

3 Months Ended

Mar. 31, 2015

Fair Value Disclosures [Abstract]

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS

Fair value is measured based on an exit price, representing the amount that would be received to sell an asset or paid to satisfy a liability in an orderly transaction between market participants. Fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions, a fair value hierarchy is established, which categorizes the inputs used in measuring fair value as follows: (Level 1) observable inputs such as quoted prices in active markets; (Level 2) inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and (Level 3) unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions.

A summary of financial instruments recognized at fair value, and the fair value measurements used, follows:

	Total			Level 1		Level 2			Level 3
March 31, 2015
Cash	$	663		$	663	$	—		$	—
Short-term investments	139			139		—			—
Net derivative contracts	129			—		129			—
Long-term debt converted to floating interest rates by    interest rate swaps - net	(122		)	—		(122		)	—
December 31, 2014
Cash	$	781		$	781	$	—		$	—
Short-term investments	245			245		—			—
Net derivative contracts	70			—		70			—
Long-term debt converted to floating interest rates by    interest rate swaps - net	(74		)	—		(74		)	—

Eaton values its financial instruments using an industry standard market approach, in which prices and other relevant information is generated by market transactions involving identical or comparable assets or liabilities. No financial instruments were recognized using unobservable inputs.

Other Fair Value Measurements

Long-term debt and the current portion of long-term debt had a carrying value of $9,073 and fair value of $9,679 at March 31, 2015 compared to $9,032 and $9,509, respectively, at December 31, 2014. The fair value of Eaton's debt instruments were estimated using prevailing market interest rates on debt with similar creditworthiness, terms and maturities and are considered a Level 2 fair value measurement.

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Equity

3 Months Ended

Mar. 31, 2015

Stockholders' Equity Note [Abstract]

EQUITY

EQUITY

Eaton has an ordinary share repurchase program (2013 Program) that authorizes the repurchase of 40 million ordinary shares. During the first quarter of 2015, 2.4 million ordinary shares were repurchased under the 2013 Program in the open market at a total cost of $170.

The changes in Shareholders’ equity follow:

	Eaton shareholders’ equity			Noncontrolling interests		Total equity
Balance at December 31, 2014	$	15,786		$	53	$	15,839
Net income	466			1		467
Other comprehensive loss	(634		)	—		(634		)
Cash dividends paid and accrued	(257		)	—		(257		)
Issuance of shares under equity-based compensation plans - net	19			—		19
Repurchase of shares	(170		)	—		(170		)
Balance at March 31, 2015	$	15,210		$	54	$	15,264

The changes in Accumulated other comprehensive loss follow:

	Currency translation and related hedging instruments			Pensions and other postretirement benefits			Cash flow hedges			Total
Balance at December 31, 2014	$	(1,414	)	$	(1,485	)	$	—		$	(2,899	)
Other comprehensive (loss) income     before reclassifications	(720		)	51			1			(668		)
Amounts reclassified from Accumulated other    comprehensive loss	—			35			(1		)	34
Net current-period Other comprehensive    (loss) income	(720		)	86			—			(634		)
Balance at March 31, 2015	$	(2,134	)	$	(1,399	)	$	—		$	(3,533	)

The reclassifications out of Accumulated other comprehensive loss follow:

	Three months ended March 31, 2015			Consolidated statements of income classification
Amortization of pensions and other postretirement benefits items
Actuarial loss and prior service cost	$	(54	)	1
Tax benefit	19
Total, net of tax	(35		)
Gains and (losses) on cash flow hedges
Currency exchange contracts	2			Cost of products sold
Tax expense	(1		)
Total, net of tax	1
Total reclassifications for the period	$	(34	)

¹ These components of Accumulated other comprehensive loss are included in the computation of net periodic benefit cost. See Note 5 for additional information about pension and other post retirement benefits items.

Net Income per Ordinary Share

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

	Three months ended March 31
(Shares in millions)	2015		2014
Net income attributable to Eaton ordinary shareholders	$	466	$	439
Weighted-average number of ordinary shares outstanding - diluted	470.0		478.8
Less dilutive effect of equity-based compensation	2.1		3.0
Weighted-average number of ordinary shares outstanding - basic	467.9		475.8
Net income per ordinary share
Diluted	$	0.99	$	0.92
Basic	1.00		0.92

For the first quarter 2015 and 2014, 0.9 million and 0.1 million stock options, respectively, were excluded from the calculation of diluted net income per ordinary share because the exercise price of the options exceeded the average market price of the ordinary shares during the period and their effect, accordingly, would have been antidilutive.

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Equity-based Compensation (Notes)

3 Months Ended

Mar. 31, 2015

Equity-based compensation [Abstract]

EQUITY-BASED COMPENSATION

EQUITY-BASED COMPENSATION

In February 2015, the Compensation and Organization Committee of the Board of Directors approved the grant of performance share units (PSUs) to certain employees that vest based on the satisfaction of a three-year service period and the achievement of certain performance metrics. The maximum number of ordinary shares that may be issued under this grant award is 911,050. The fair value of these PSUs is determined based on the closing market price of the Company’s ordinary shares at the date of grant. Equity-based compensation expense is recognized over the period an employee is required to provide service based on the number of PSUs for which achievement of the performance objectives is probable.

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Derivative Financial Instruments and Hedging Activities

3 Months Ended

Mar. 31, 2015

Derivative Instruments and Hedging Activities Disclosure [Abstract]

DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES

DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES

In the normal course of business, Eaton is exposed to certain risks related to fluctuations in interest rates, currency exchange rates and commodity prices. The Company uses various derivative and non-derivative financial instruments, primarily interest rate swaps, currency forward exchange contracts, currency swaps and, to a lesser extent, commodity contracts, to manage risks from these market fluctuations. The instruments used by Eaton are straightforward, non-leveraged instruments. The counterparties to these instruments are financial institutions with strong credit ratings. Eaton maintains control over the size of positions entered into with any one counterparty and regularly monitors the credit rating of these institutions. Such instruments are not purchased and sold for trading purposes.

Derivative financial instruments are accounted for at fair value and recognized as assets or liabilities in the Condensed Consolidated Balance Sheets. Accounting for the gain or loss resulting from the change in the fair value of the derivative financial instrument depends on whether it has been designated, and is effective, as part of a hedging relationship and, if so, as to the nature of the hedging activity. Eaton formally documents all relationships between derivative financial instruments accounted for as designated hedges and the hedged item, as well as its risk-management objective and strategy for undertaking the hedge transaction. This process includes linking derivative financial instruments to a recognized asset or liability, specific firm commitment, forecasted transaction, or net investment in a foreign operation. These financial instruments can be designated as:

• Hedges of the change in the fair value of a recognized fixed-rate asset or liability, or the firm commitment to acquire such an asset or liability (a fair value hedge); for these hedges, the gain or loss from the derivative financial instrument, as well as the offsetting loss or gain on the hedged item attributable to the hedged risk, are recognized in income during the period of change in fair value.

• Hedges of the variable cash flows of a recognized variable-rate asset or liability, or the forecasted acquisition of such an asset or liability (a cash flow hedge); for these hedges, the effective portion of the gain or loss from the derivative financial instrument is recognized in Accumulated other comprehensive loss and reclassified to income in the same period when the gain or loss on the hedged item is included in income.

• Hedges of the currency exposure related to a net investment in a foreign operation (a net investment hedge); for these hedges, the effective portion of the gain or loss from the derivative financial instrument is recognized in Accumulated other comprehensive loss and reclassified to income in the same period when the gain or loss related to the net investment in the foreign operation is included in income.

The gain or loss from a derivative financial instrument designated as a hedge that is effective is classified in the same line of the Consolidated Statements of Income as the offsetting loss or gain on the hedged item. The change in fair value of a derivative financial instrument that is not effective as a hedge is immediately recognized in income.

For derivatives that are not designated as a hedge, any gain or loss is immediately recognized in income. The majority of derivatives used in this manner relate to risks resulting from assets or liabilities denominated in a foreign currency and certain commodity contracts that arise in the normal course of business. Gains and losses associated with commodity hedge contracts are classified in Cost of products sold.

Eaton uses certain of its debt denominated in foreign currency to hedge portions of its net investments in foreign operations against foreign currency exposure (net investment hedges). Foreign currency denominated debt designated on an after-tax basis as non-derivative net investment hedging instruments was $83 and $84 at March 31, 2015 and December 31, 2014, respectively.

Derivative Financial Statement Impacts

The fair value of derivative financial instruments recognized in the Condensed Consolidated Balance Sheets follows:

	Notional amount		Other  current assets		Other noncurrent assets		Other current liabilities		Other noncurrent liabilities		Type of hedge	Term
March 31, 2015
Derivatives designated as hedges
Fixed-to-floating interest rate swaps	$	3,440	$	—	$	122	$	—	$	—	Fair value	2 to 20 years
Currency exchange contracts	412		16		—		8		8		Cash flow	1 to 36 months
Commodity contracts	1		—		—		—		—		Cash flow	1 to 12 months
Total			$	16	$	122	$	8	$	8
Derivatives not designated as  hedges
Currency exchange contracts	$	4,313	$	52			$	45				1 to 12 months
Total			$	52			$	45
December 31, 2014
Derivatives designated as hedges
Fixed-to-floating interest rate swaps	$	3,440	$	—	$	84	$	—	$	10	Fair value	2 to 19 years
Currency exchange contracts	432		8		1		5		3		Cash flow	1 to 36 months
Commodity contracts	1		—		—		—		—		Cash flow	1 to 12 months
Total			$	8	$	85	$	5	$	13
Derivatives not designated as  hedges
Currency exchange contracts	$	4,447	$	47			$	52				1 to 12 months
Total			$	47			$	52

The currency exchange contracts shown in the table above as derivatives not designated as hedges are primarily contracts entered into to manage currency volatility or exposure on intercompany sales and loans. While Eaton does not elect hedge accounting treatment for these derivatives, Eaton targets managing 100% of the intercompany balance sheet exposure to minimize the effect of currency volatility related to the movement of goods and services in the normal course of its operations. This activity represents the great majority of these currency exchange contracts.

Amounts recognized in Accumulated other comprehensive loss follow:

					Location of gain
	Gain recognized in				reclassified from	Gain reclassified
	other comprehensive				Accumulated other	from Accumulated other
	(loss) income				comprehensive loss	comprehensive loss
	Three months ended March 31					Three months ended March 31
	2015		2014			2015		2014
Derivatives designated as cash  flow hedges
Currency exchange contracts	$	2	$	2	Cost of products sold	$	2	$	2

Amounts recognized in net income follow:

	Three months ended March 31
	2015			2014
Derivatives designated as fair value hedges
Fixed-to-floating interest rate swaps	$	48		$	29
Related long-term debt converted to floating interest    rates by interest rate swaps	(48		)	(29		)
	$	—		$	—

Gains and losses described above were recognized in Interest expense - net.

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Legal Contingencies (Details) (Raysul [Member]) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2015 USD ($)	Mar. 31, 2015 BRL	Dec. 31, 2010 USD ($)	Dec. 31, 2010 BRL
Loss Contingencies [Line Items]
Loss Contingency Accrual	$ 26	85
Loss Contingency Accrual, Provision	$ 8	25	$ 18	60

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Acquisition Integration Charges (Tables)

3 Months Ended

Mar. 31, 2015

Acquisitions Integration Charges [Abstract]

Acquisition integration charges [Table Text Block]

A summary of these charges follows:

	Three months ended March 31
	2015		2014
Acquisition integration charges
Electrical Products	$	6	$	29
Electrical Systems and Services	3		26
Hydraulics	1		4
Total business segments	10		59
Corporate	1		7
Total acquisition integration charges before income taxes	$	11	$	66
Total after income taxes	$	7	$	44
Per ordinary share - diluted	$	0.02	$	0.09

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Derivative Financial Instruments and Hedging Activities (Tables)

3 Months Ended

Mar. 31, 2015

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative financial instruments recognized in the Condensed Consolidated Balance Sheet

The fair value of derivative financial instruments recognized in the Condensed Consolidated Balance Sheets follows:

	Notional amount		Other  current assets		Other noncurrent assets		Other current liabilities		Other noncurrent liabilities		Type of hedge	Term
March 31, 2015
Derivatives designated as hedges
Fixed-to-floating interest rate swaps	$	3,440	$	—	$	122	$	—	$	—	Fair value	2 to 20 years
Currency exchange contracts	412		16		—		8		8		Cash flow	1 to 36 months
Commodity contracts	1		—		—		—		—		Cash flow	1 to 12 months
Total			$	16	$	122	$	8	$	8
Derivatives not designated as  hedges
Currency exchange contracts	$	4,313	$	52			$	45				1 to 12 months
Total			$	52			$	45
December 31, 2014
Derivatives designated as hedges
Fixed-to-floating interest rate swaps	$	3,440	$	—	$	84	$	—	$	10	Fair value	2 to 19 years
Currency exchange contracts	432		8		1		5		3		Cash flow	1 to 36 months
Commodity contracts	1		—		—		—		—		Cash flow	1 to 12 months
Total			$	8	$	85	$	5	$	13
Derivatives not designated as  hedges
Currency exchange contracts	$	4,447	$	47			$	52				1 to 12 months
Total			$	47			$	52

Amounts Recognized in Accumulated Other Comprehensive Loss [Table Text Block]

Amounts recognized in Accumulated other comprehensive loss follow:

					Location of gain
	Gain recognized in				reclassified from	Gain reclassified
	other comprehensive				Accumulated other	from Accumulated other
	(loss) income				comprehensive loss	comprehensive loss
	Three months ended March 31					Three months ended March 31
	2015		2014			2015		2014
Derivatives designated as cash  flow hedges
Currency exchange contracts	$	2	$	2	Cost of products sold	$	2	$	2

Amounts recognized in net income

Amounts recognized in net income follow:

	Three months ended March 31
	2015			2014
Derivatives designated as fair value hedges
Fixed-to-floating interest rate swaps	$	48		$	29
Related long-term debt converted to floating interest    rates by interest rate swaps	(48		)	(29		)
	$	—		$	—

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Condensed Consolidating Financial Information Condensed Consolidating Balance Sheets (Details) (USD $) In Millions, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014	Mar. 31, 2014	Dec. 31, 2013
Condensed Consolidating Balance Sheets, Captions [Line Items]
Cash	$ 663	$ 781	$ 784	$ 915
Short-term investments	139	245
Accounts receivable - net	3,733	3,667
Intercompany accounts receivable	0	0
Inventory	2,424	2,428
Deferred income taxes	576	593
Prepaid expenses and other current assets	405	386
Total current assets	7,940	8,100
Property, plant and equipment - net	3,634	3,750
Goodwill	13,548	13,893
Other intangible assets	6,317	6,556
Deferred income taxes	220	228
Investment in subsidiaries	0	0
Intercompany loans receivables	0	0
Other assets	1,037	1,002
Total assets	32,696	33,529
Short-term debt	267	2
Current portion of long-term debt	1,244	1,008
Accounts payable	1,969	1,940
Intercompany accounts payable	0	0
Accrued compensation	282	420
Other current liabilities	1,904	1,985
Total current liabilities	5,666	5,355
Long-term debt	7,829	8,024
Pension liabilities	1,530	1,812
Other postretirement benefits liabilities	506	513
Deferred income taxes	881	901
Intercompany loans payable	0	0
Other noncurrent liabilities	1,020	1,085
Total noncurrent liabilities	11,766	12,335
Eaton shareholders' equity	15,210	15,786
Noncontrolling interests	54	53
Total equity	15,264	15,839
Total liabilities and equity	32,696	33,529
Eaton Corporation plc [Member]
Condensed Consolidating Balance Sheets, Captions [Line Items]
Cash	7	1	8	3
Short-term investments	0	0
Accounts receivable - net	0	0
Intercompany accounts receivable	4	2
Inventory	0	0
Deferred income taxes	0	0
Prepaid expenses and other current assets	0	0
Total current assets	11	3
Property, plant and equipment - net	0	0
Goodwill	0	0
Other intangible assets	0	0
Deferred income taxes	0	0
Investment in subsidiaries	26,508	26,612
Intercompany loans receivables	0	0
Other assets	0	0
Total assets	26,519	26,615
Short-term debt	0	0
Current portion of long-term debt	0	0
Accounts payable	0	0
Intercompany accounts payable	59	117
Accrued compensation	0	0
Other current liabilities	7	1
Total current liabilities	66	118
Long-term debt	0	0
Pension liabilities	0	0
Other postretirement benefits liabilities	0	0
Deferred income taxes	0	0
Intercompany loans payable	11,243	10,711
Other noncurrent liabilities	0	0
Total noncurrent liabilities	11,243	10,711
Eaton shareholders' equity	15,210	15,786
Noncontrolling interests	0	0
Total equity	15,210	15,786
Total liabilities and equity	26,519	26,615
Eaton Corporation [Member]
Condensed Consolidating Balance Sheets, Captions [Line Items]
Cash	36	173	46	51
Short-term investments	0	0
Accounts receivable - net	557	500
Intercompany accounts receivable	557	759
Inventory	384	397
Deferred income taxes	355	368
Prepaid expenses and other current assets	122	96
Total current assets	2,011	2,293
Property, plant and equipment - net	966	972
Goodwill	1,355	1,355
Other intangible assets	192	196
Deferred income taxes	892	889
Investment in subsidiaries	12,410	12,179
Intercompany loans receivables	7,766	7,542
Other assets	583	533
Total assets	26,175	25,959
Short-term debt	250	0
Current portion of long-term debt	701	702
Accounts payable	493	475
Intercompany accounts payable	4,022	4,125
Accrued compensation	32	112
Other current liabilities	712	674
Total current liabilities	6,210	6,088
Long-term debt	7,122	7,079
Pension liabilities	586	726
Other postretirement benefits liabilities	280	283
Deferred income taxes	14	0
Intercompany loans payable	2,768	2,723
Other noncurrent liabilities	420	457
Total noncurrent liabilities	11,190	11,268
Eaton shareholders' equity	8,775	8,603
Noncontrolling interests	0	0
Total equity	8,775	8,603
Total liabilities and equity	26,175	25,959
Guarantors [Member]
Condensed Consolidating Balance Sheets, Captions [Line Items]
Cash	257	13	12	10
Short-term investments	1	1
Accounts receivable - net	1,013	955
Intercompany accounts receivable	3,835	3,820
Inventory	668	637
Deferred income taxes	134	132
Prepaid expenses and other current assets	41	39
Total current assets	5,949	5,597
Property, plant and equipment - net	747	756
Goodwill	6,256	6,256
Other intangible assets	3,764	3,811
Deferred income taxes	2	10
Investment in subsidiaries	57,827	58,687
Intercompany loans receivables	2,112	2,249
Other assets	132	141
Total assets	76,789	77,507
Short-term debt	0	0
Current portion of long-term debt	542	304
Accounts payable	343	340
Intercompany accounts payable	2,706	3,449
Accrued compensation	44	59
Other current liabilities	302	340
Total current liabilities	3,937	4,492
Long-term debt	687	932
Pension liabilities	138	183
Other postretirement benefits liabilities	135	136
Deferred income taxes	1,165	1,160
Intercompany loans payable	36,310	36,162
Other noncurrent liabilities	181	183
Total noncurrent liabilities	38,616	38,756
Eaton shareholders' equity	34,236	34,259
Noncontrolling interests	0	0
Total equity	34,236	34,259
Total liabilities and equity	76,789	77,507
Other subsidiaries [Member]
Condensed Consolidating Balance Sheets, Captions [Line Items]
Cash	363	594	718	851
Short-term investments	138	244
Accounts receivable - net	2,163	2,212
Intercompany accounts receivable	3,390	4,101
Inventory	1,425	1,445
Deferred income taxes	87	93
Prepaid expenses and other current assets	248	247
Total current assets	7,814	8,936
Property, plant and equipment - net	1,921	2,022
Goodwill	5,937	6,282
Other intangible assets	2,361	2,549
Deferred income taxes	145	137
Investment in subsidiaries	9,184	9,145
Intercompany loans receivables	41,301	40,635
Other assets	322	328
Total assets	68,985	70,034
Short-term debt	17	2
Current portion of long-term debt	1	2
Accounts payable	1,133	1,125
Intercompany accounts payable	999	991
Accrued compensation	206	249
Other current liabilities	907	984
Total current liabilities	3,263	3,353
Long-term debt	18	13
Pension liabilities	806	903
Other postretirement benefits liabilities	91	94
Deferred income taxes	521	549
Intercompany loans payable	858	830
Other noncurrent liabilities	419	445
Total noncurrent liabilities	2,713	2,834
Eaton shareholders' equity	62,963	63,802
Noncontrolling interests	46	45
Total equity	63,009	63,847
Total liabilities and equity	68,985	70,034
Consolidating adjustments [Member]
Condensed Consolidating Balance Sheets, Captions [Line Items]
Cash	0	0	0	0
Short-term investments	0	0
Accounts receivable - net	0	0
Intercompany accounts receivable	(7,786)	(8,682)
Inventory	(53)	(51)
Deferred income taxes	0	0
Prepaid expenses and other current assets	(6)	4
Total current assets	(7,845)	(8,729)
Property, plant and equipment - net	0	0
Goodwill	0	0
Other intangible assets	0	0
Deferred income taxes	(819)	(808)
Investment in subsidiaries	(105,929)	(106,623)
Intercompany loans receivables	(51,179)	(50,426)
Other assets	0	0
Total assets	(165,772)	(166,586)
Short-term debt	0	0
Current portion of long-term debt	0	0
Accounts payable	0	0
Intercompany accounts payable	(7,786)	(8,682)
Accrued compensation	0	0
Other current liabilities	(24)	(14)
Total current liabilities	(7,810)	(8,696)
Long-term debt	2	0
Pension liabilities	0	0
Other postretirement benefits liabilities	0	0
Deferred income taxes	(819)	(808)
Intercompany loans payable	(51,179)	(50,426)
Other noncurrent liabilities	0	0
Total noncurrent liabilities	(51,996)	(51,234)
Eaton shareholders' equity	(105,974)	(106,664)
Noncontrolling interests	8	8
Total equity	(105,966)	(106,656)
Total liabilities and equity	$ (165,772)	$ (166,586)

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Fair Value Measurements (Details) (USD $) In Millions, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014	Mar. 31, 2014	Dec. 31, 2013
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items]
Cash	$ 663	$ 781	$ 784	$ 915
Short-term investments	139	245
Net derivative contracts	129	70
Long-term debt converted to floating interest rates by interest rate swaps - net	(122)	(74)
Level 1 [Member]
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items]
Cash	663	781
Short-term investments	139	245
Net derivative contracts	0	0
Long-term debt converted to floating interest rates by interest rate swaps - net	0	0
Level 2 [Member]
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items]
Cash	0	0
Short-term investments	0	0
Net derivative contracts	129	70
Long-term debt converted to floating interest rates by interest rate swaps - net	(122)	(74)
Level 3 [Member]
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items]
Cash	0	0
Short-term investments	0	0
Net derivative contracts	0	0
Long-term debt converted to floating interest rates by interest rate swaps - net	$ 0	$ 0

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Condensed Consolidated Statements of Cash Flows (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Operating activities
Net income	$ 467	$ 441
Adjustments to reconcile to net cash provided by operating activities
Depreciation and amortization	226	249
Deferred income taxes	14	(24)
Pension and other postretirement benefits expense	76	99
Contributions to pension plans	(223)	(272)
Contributions to other postretirement benefits plans	(9)	(12)
Excess tax benefit from equity-based compensation	0	(20)
Changes in working capital	(372)	(370)
Other - net	(102)	(79)
Net cash provided by operating activities	77	12
Investing activities
Cash paid for acquisitions of businesses, net of cash acquired	(38)	0
Capital expenditures for property, plant and equipment	(105)	(110)
Sales of short-term investments - net	99	431
Proceeds from sale of businesses	0	3
Other - net	(9)	(20)
Net cash (used in) provided by investing activities	(53)	304
Financing activities
Proceeds from borrowings	266	0
Payments on borrowings	(3)	(257)
Cash dividends paid	(251)	(229)
Exercise of employee stock options	33	23
Repurchase of shares	170	0
Excess tax benefit from equity-based compensation	0	20
Other - net	(2)	0
Net cash used in financing activities	(127)	(443)
Effect of currency on cash	(15)	(4)
Total decrease in cash	(118)	(131)
Cash at the beginning of the period	781	915
Cash at the end of the period	$ 663	$ 784

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Retirement Benefits Plans

3 Months Ended

Mar. 31, 2015

Compensation and Retirement Disclosure [Abstract]

RETIREMENT BENEFITS PLANS

RETIREMENT BENEFITS PLANS

The components of retirement benefits expense follow:

	United States pension benefit expense						Non-United States pension benefit expense						Other postretirement benefits expense
	Three months ended March 31
	2015			2014			2015			2014			2015			2014
Service cost	$	31		$	29		$	18		$	16		$	2		$	4
Interest cost	39			40			18			22			6			9
Expected return on plan assets	(66		)	(61		)	(25		)	(25		)	(1		)	(1		)
Amortization	30			23			10			7			—			2
	34			31			21			20			7			14
Settlement loss	14			34			—			—			—			—
Total expense	$	48		$	65		$	21		$	20		$	7		$	14

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Inventory (Tables)

3 Months Ended

Mar. 31, 2015

Inventory Disclosure [Abstract]

Components of inventory

The components of inventory follow:

	March 31, 2015			December 31, 2014
Raw materials	$	1,088		$	924
Work-in-process	295			422
Finished goods	1,161			1,201
Inventory at FIFO	2,544			2,547
Excess of FIFO over LIFO cost	(120		)	(119		)
Total inventory	$	2,424		$	2,428

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Reclassifications Out of Accumulated Other Comprehensive Loss (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2015
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Actuarial loss and prior service cost	$ (54)	[1]
Tax benefit	19
Total, net of tax	(35)
Tax expense	(1)
Total, net of tax	1
Total reclassifications for the period	(34)
Cost of products sold [Member] | Currency exchange contracts [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Currency exchange contracts	$ 2

[1] These components of Accumulated other comprehensive loss are included in the computation of net periodic benefit cost. See Note 5 for additional information about pension and other post retirement benefits items.

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Basis of Presentation Basis of Presentation (Policies)

3 Months Ended

Mar. 31, 2015

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Business Description and Basis of Presentation [Text Block]

The accompanying unaudited condensed consolidated financial statements of Eaton Corporation plc (Eaton or the Company) have been prepared in accordance with generally accepted accounting principles for interim financial information, the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by United States generally accepted accounting principles (US GAAP) for complete financial statements. However, in the opinion of management, all adjustments (consisting of normal recurring accruals) have been made that are necessary for a fair presentation of the condensed consolidated financial statements for the interim periods.

This Form 10-Q should be read in conjunction with the consolidated financial statements and related notes included in Eaton’s 2014 Form 10-K. The interim period results are not necessarily indicative of the results to be expected for the full year. Management has evaluated subsequent events through the date this Form 10-Q was filed with the Securities Exchange Commission.

Reclassifications [Policy Text Block]

Certain prior year amounts have been reclassified to conform to the current year presentation.

Recently Issued Accounting Pronouncements [Policy Text Block]

Recently Issued Accounting Pronouncements

In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers (ASU 2014-09). This accounting standard supersedes all existing US GAAP revenue recognition guidance. Under ASU 2014-09, a company will recognize revenue when it transfers the control of promised goods or services to customers in an amount that reflects the consideration which the company expects to collect in exchange for those goods or services. ASU 2014-09 will require additional disclosures in the notes to the consolidated financial statements and is effective for annual and interim reporting periods beginning after December 15, 2016. In April 2015, the FASB proposed to defer the effective date of the new standard for one year. If the proposal is approved, then early adoption as of the original effective date would be permitted. Eaton is evaluating the impact of ASU 2014-09 and an estimate of the impact to the consolidated financial statements cannot be made at this time.