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 June 30, 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)

+1 353 1637 2900

(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 467.5 million Ordinary Shares outstanding as of June 30, 2015.

TABLE OF CONTENTS
PART I — FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS	2
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	22
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	27
ITEM 4. CONTROLS AND PROCEDURES	27
PART II — OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS	28
ITEM 1A. RISK FACTORS	28
ITEM 6. EXHIBITS	28
SIGNATURES	29
EXHIBIT INDEX	30
EX-12
EX-31.1
EX-31.2
EX-32.1
EX-32.2
EX-99.1 FRS 102 NOTIFICATION
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 June 30						Six months ended June 30
(In millions except for per share data)	2015			2014			2015			2014
Net sales	$	5,372		$	5,767		$	10,595		$	11,259
Cost of products sold	3,675			4,025			7,268			7,883
Selling and administrative expense	901			984			1,816			1,946
Litigation settlements	—			644			—			644
Research and development expense	158			168			316			330
Interest expense - net	59			55			116			117
Other income - net	(19		)	(166		)	(24		)	(171		)
Income before income taxes	598			57			1,103			510
Income tax expense (benefit)	63			(115		)	101			(103		)
Net income	535			172			1,002			613
Less net income for noncontrolling interests	—			(1		)	(1		)	(3		)
Net income attributable to Eaton ordinary shareholders	$	535		$	171		$	1,001		$	610
Net income per ordinary share
Diluted	$	1.14		$	0.36		$	2.13		$	1.27
Basic	1.14			0.36			2.14			1.28
Weighted-average number of ordinary shares outstanding
Diluted	469.2			478.5			469.6			478.7
Basic	467.6			475.9			467.7			475.9
Cash dividends declared per ordinary share	$	0.55		$	0.49		$	1.10		$	0.98

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

2

EATON CORPORATION plc

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

	Three months ended June 30					Six months ended June 30
(In millions)	2015		2014			2015			2014
Net income	$	535	$	172		$	1,002		$	613
Less net income for noncontrolling interests	—		(1		)	(1		)	(3		)
Net income attributable to Eaton ordinary shareholders	535		171			1,001			610
Other comprehensive income (loss), net of tax
Currency translation and related hedging instruments	209		58			(511		)	11
Pensions and other postretirement benefits	18		23			104			73
Cash flow hedges	3		2			3			2
Other comprehensive income (loss) attributable to Eaton    ordinary shareholders	230		83			(404		)	86
Total comprehensive income attributable to Eaton   ordinary shareholders	$	765	$	254		$	597		$	696

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)	June 30, 2015		December 31, 2014
Assets
Current assets
Cash	$	303	$	781
Short-term investments	127		245
Accounts receivable - net	3,840		3,667
Inventory	2,439		2,428
Deferred income taxes	553		593
Prepaid expenses and other current assets	382		386
Total current assets	7,644		8,100
Property, plant and equipment - net	3,680		3,750
Other noncurrent assets
Goodwill	13,698		13,893
Other intangible assets	6,282		6,556
Deferred income taxes	250		228
Other assets	1,025		1,002
Total assets	$	32,579	$	33,529
Liabilities and shareholders’ equity
Current liabilities
Short-term debt	$	139	$	2
Current portion of long-term debt	842		1,008
Accounts payable	1,931		1,940
Accrued compensation	327		420
Other current liabilities	1,817		1,985
Total current liabilities	5,056		5,355
Noncurrent liabilities
Long-term debt	7,770		8,024
Pension liabilities	1,552		1,812
Other postretirement benefits liabilities	507		513
Deferred income taxes	876		901
Other noncurrent liabilities	1,015		1,085
Total noncurrent liabilities	11,720		12,335
Shareholders’ equity
Eaton shareholders’ equity	15,753		15,786
Noncontrolling interests	50		53
Total equity	15,803		15,839
Total liabilities and equity	$	32,579	$	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

	Six months ended June 30
(In millions)	2015			2014
Operating activities
Net income	$	1,002		$	613
Adjustments to reconcile to net cash provided by operating activities
Depreciation and amortization	460			499
Deferred income taxes	(29		)	(256		)
Pension and other postretirement benefits expense	158			180
Contributions to pension plans	(258		)	(304		)
Contributions to other postretirement benefits plans	(16		)	(24		)
Excess tax benefit from equity-based compensation	—			(20		)
Gain on sale of businesses	—			(69		)
Changes in working capital	(506		)	116
Other - net	(155		)	(90		)
Net cash provided by operating activities	656			645
Investing activities
Cash paid for acquisitions of businesses, net of cash acquired	(38		)	—
Capital expenditures for property, plant and equipment	(246		)	(236		)
Sales of short-term investments - net	109			162
Proceeds from sale of businesses	1			273
Other - net	(33		)	(51		)
Net cash (used in) provided by investing activities	(207		)	148
Financing activities
Proceeds from borrowings	137			—
Payments on borrowings	(404		)	(576		)
Cash dividends paid	(514		)	(467		)
Exercise of employee stock options	46			44
Repurchase of shares	(170		)	(99		)
Excess tax benefit from equity-based compensation	—			20
Other - net	(7		)	—
Net cash used in financing activities	(912		)	(1,078		)
Effect of currency on cash	(15		)	1
Total decrease in cash	(478		)	(284		)
Cash at the beginning of the period	781			915
Cash at the end of the period	$	303		$	631

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 and 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 July 2015, the FASB made a decision to defer the effective date of the new standard for one year and permit early adoption as of the original effective date. 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 $156 as of June 30, 2014.

6

Note 3. ACQUISITION INTEGRATION CHARGES

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

	Three months ended June 30				Six months ended June 30
	2015		2014		2015		2014
Business segment
Electrical Products	$	6	$	12	$	12	$	41
Electrical Systems and Services	4		13		7		39
Hydraulics	1		5		2		9
Total business segments	11		30		21		89
Corporate	1		7		2		14
Total acquisition integration charges before income taxes	$	12	$	37	$	23	$	103
Total after income taxes	$	8	$	23	$	15	$	67
Per ordinary share - diluted	$	0.02	$	0.05	$	0.03	$	0.14

Business segment acquisition integration charges for the three and six months ended June 30, 2015 and 2014 were related primarily to the integration of Cooper Industries plc (Cooper) to gain efficiencies in selling, marketing, traditional back-office functions, 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 acquisition 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. RESTRUCTURING CHARGES

The Company plans to implement certain restructuring activities in an effort to gain efficiencies in all business segments. These restructuring activities are anticipated to be $145, comprised primarily of severance costs, with $120 to occur in the second half of 2015 and $25 in 2016.

Note 5. 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
Reclassifications	(106		)	106			—			—		—			—
Translation	(106		)	(66		)	(42		)	1		(4		)	(217		)
June 30, 2015	$	6,728		$	4,376		$	1,285		$	963	$	346		$	13,698

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Note 6. 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 June 30
	2015			2014			2015			2014			2015			2014
Service cost	$	30		$	29		$	19		$	17		$	1		$	5
Interest cost	39			41			18			22			6			10
Expected return on plan assets	(65		)	(62		)	(25		)	(25		)	(1		)	(2		)
Amortization	30			23			10			7			1			2
	34			31			22			21			7			15
Settlements	19			14			—			—			—			—
Total expense	$	53		$	45		$	22		$	21		$	7		$	15

	United States pension benefit expense						Non-United States pension benefit expense						Other postretirement benefits expense
	Six months ended June 30
	2015			2014			2015			2014			2015			2014
Service cost	$	61		$	58		$	37		$	33		$	3		$	9
Interest cost	78			81			36			44			12			19
Expected return on plan assets	(131		)	(123		)	(50		)	(50		)	(2		)	(3		)
Amortization	60			46			20			14			1			4
	68			62			43			41			14			29
Settlements	33			48			—			—			—			—
Total expense	$	101		$	110		$	43		$	41		$	14		$	29

Note 7. 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 June 30, 2015, the Company has a total accrual of 88 Brazilian Reais related to this matter ($28 based on current exchange rates), comprised of 60 Brazilian Reais recognized in the fourth quarter of 2010 ($19 based on current exchange rates) with an additional 28 Brazilian Reais recognized through June 30, 2015 ($9 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.

On October 5, 2006, ZF Meritor LLC and Meritor Transmission Corporation (collectively, Meritor) filed an action against Eaton in the United States District Court of Delaware. The action sought damages, which would have been trebled under United States antitrust laws, as well as injunctive relief and costs. The suit alleged that Eaton engaged in anti-competitive conduct against Meritor in the sale of heavy-duty truck transmissions in North America. On June 23, 2014, Eaton announced it signed a settlement agreement with Meritor in the amount of $500 that resolved the lawsuit and removed the uncertainty of a trial and appeal process. On July 16, 2014, Eaton paid Meritor the $500.

8

Frisby Corporation, now known as Triumph Actuation Systems, LLC, and other claimants (collectively, Triumph) asserted claims alleging, among other things, unfair competition, defamation, malicious prosecution, deprivation of civil rights, and antitrust in the Hinds County Circuit Court of Mississippi in 2004 and in the Federal District Court of North Carolina in 2011. Eaton had asserted claims against Triumph regarding improper use of trade secrets and these claims were dismissed by the Hinds County Circuit Court. On June 18, 2014, Eaton announced it signed a settlement agreement with Triumph in the amount of $147.5 that resolved all claims and lawsuits and removed the uncertainty of a trial and appeal process. On July 8, 2014, Eaton paid Triumph the $147.5.

Note 8. INCOME TAXES

The effective income tax rate for the second quarter and first six months of 2015 was expense of 11% and 9%, respectively, compared to a benefit of 203% and 20% for the second quarter and first six months of 2014, respectively. Excluding the litigation settlements and related legal costs, as well as the gain on the sale of Eaton's Aerospace businesses, which represents a total pre-tax expense of $494 and occurred in the second quarter of 2014, the effective income tax rate was expense of 8% and 6% for the second quarter and first six months of 2014, respectively. See Note 7 and Note 2 for additional information about legal contingencies and the sale of businesses, respectively.

The increase in the effective tax rate in the second quarter and first six months of 2015 is primarily due to more income earned in higher tax jurisdictions, including the United States.

Note 9. 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. No ordinary shares were repurchased during the second quarter of 2015. During the first six months and second quarter of 2014, 1.4 million ordinary shares were repurchased under the 2013 Program in the open market at a total cost of $99.

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	1,001			1			1,002
Other comprehensive loss	(404		)	—			(404		)
Cash dividends paid and accrued	(514		)	(4		)	(518		)
Issuance of shares under equity-based compensation plans - net	54			—			54
Repurchase of shares	(170		)	—			(170		)
Balance at June 30, 2015	$	15,753		$	50		$	15,803

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	(511		)	30			7			(474		)
Amounts reclassified from Accumulated other    comprehensive loss	—			74			(4		)	70
Net current-period Other comprehensive    (loss) income	(511		)	104			3			(404		)
Balance at June 30, 2015	$	(1,925	)	$	(1,381	)	$	3		$	(3,303	)

The reclassifications out of Accumulated other comprehensive loss follow:

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	Six months ended June 30, 2015				Consolidated statements of income classification
Amortization of pensions and other postretirement benefits items
Actuarial loss and prior service cost	$	(114	)	1
Tax benefit	40
Total, net of tax	(74		)
Gains and (losses) on cash flow hedges
Currency exchange contracts	6				Cost of products sold
Tax expense	(2		)
Total, net of tax	4
Total reclassifications for the period	$	(70	)

¹ These components of Accumulated other comprehensive loss are included in the computation of net periodic benefit cost. See Note 6 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 June 30				Six months ended June 30
(Shares in millions)	2015		2014		2015		2014
Net income attributable to Eaton ordinary shareholders	$	535	$	171	$	1,001	$	610
Weighted-average number of ordinary shares outstanding - diluted	469.2		478.5		469.6		478.7
Less dilutive effect of equity-based compensation	1.6		2.6		1.9		2.8
Weighted-average number of ordinary shares outstanding - basic	467.6		475.9		467.7		475.9
Net income per ordinary share
Diluted	$	1.14	$	0.36	$	2.13	$	1.27
Basic	1.14		0.36		2.14		1.28

For the second quarter and first six months of 2015, 1.3 million and 1.1 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. For the second quarter and first six months of 2014, 0.5 million and 0.3 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 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.

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

10

	Total			Level 1		Level 2			Level 3
June 30, 2015
Cash	$	303		$	303	$	—		$	—
Short-term investments	127			127		—			—
Net derivative contracts	73			—		73			—
Long-term debt converted to floating interest rates by    interest rate swaps - net	(71		)	—		(71		)	—
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 measured using unobservable inputs.

Other Fair Value Measurements

Long-term debt and the current portion of long-term debt had a carrying value of $8,612 and fair value of $8,879 at June 30, 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.

• 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.

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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 $82 at June 30, 2015 and $84 at December 31, 2014.

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
June 30, 2015
Derivatives designated as hedges
Fixed-to-floating interest rate swaps	$	3,440	$	—	$	81	$	—	$	10	Fair value	2 to 19 years
Currency exchange contracts	533		10		1		4		2		Cash flow	1 to 36 months
Commodity contracts	1		—		—		—		—		Cash flow	1 to 12 months
Total			$	10	$	82	$	4	$	12
Derivatives not designated as  hedges
Currency exchange contracts	$	3,975	$	25			$	28				1 to 12 months
Total			$	25			$	28
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.

12

Amounts recognized in Accumulated other comprehensive loss follow:

	Gain (loss) recognized in other comprehensive (loss) income				Location of gain reclassified from Accumulated other comprehensive loss	Gain (loss) reclassified from Accumulated other comprehensive loss
	Three months ended June 30					Three months ended June 30
	2015		2014			2015		2014
Derivatives designated as    cash flow hedges
Floating-to-fixed interest rate swaps	$	—	$	—	Interest expense - net	$	—	$	(1	)
Currency exchange contracts	8		3		Cost of products sold	4		2
Total	$	8	$	3		$	4	$	1

	Gain (loss) recognized in other comprehensive (loss) income				Location of gain reclassified from Accumulated other comprehensive loss	Gain (loss) reclassified from Accumulated other comprehensive loss
	Six months ended June 30					Six months ended June 30
	2015		2014			2015		2014
Derivatives designated as cash    flow hedges
Floating-to-fixed interest rate swaps	$	—	$	—	Interest expense - net	$	—	$	(1	)
Currency exchange contracts	10		5		Cost of products sold	6		4
Total	$	10	$	5		$	6	$	3

Amounts recognized in net income follow:

	Three months ended June 30						Six months ended June 30
	2015			2014			2015			2014
Derivatives designated as fair value hedges
Fixed-to-floating interest rate swaps	$	(51	)	$	44		$	(3	)	$	73
Related long-term debt converted to floating interest    rates by interest rate swaps	51			(44		)	3			(73		)
	$	—		$	—		$	—		$	—

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

Note 12. INVENTORY

The components of inventory follow:

	June 30, 2015			December 31, 2014
Raw materials	$	1,130		$	924
Work-in-process	279			422
Finished goods	1,152			1,201
Inventory at FIFO	2,561			2,547
Excess of FIFO over LIFO cost	(122		)	(119		)
Total inventory	$	2,439		$	2,428

13

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.

	Three months ended June 30						Six months ended June 30
	2015			2014			2015			2014
Net sales
Electrical Products	$	1,784		$	1,832		$	3,475		$	3,558
Electrical Systems and Services	1,502			1,628			2,950			3,152
Hydraulics	643			787			1,308			1,569
Aerospace	454			486			918			950
Vehicle	989			1,034			1,944			2,030
Total net sales	$	5,372		$	5,767		$	10,595		$	11,259
Segment operating profit
Electrical Products	$	276		$	300		$	536		$	550
Electrical Systems and Services	223			194			409			363
Hydraulics	74			94			140			202
Aerospace	77			69			154			131
Vehicle	190			155			354			306
Total segment operating profit	840			812			1,593			1,552
Corporate
Litigation settlements	—			(644		)	—			(644		)
Amortization of intangible assets	(102		)	(109		)	(204		)	(219		)
Interest expense - net	(59		)	(55		)	(116		)	(117		)
Pension and other postretirement benefits expense	(33		)	(32		)	(61		)	(83		)
Other corporate (expense) benefit - net	(48		)	85			(109		)	21
Income before income taxes	598			57			1,103			510
Income tax expense (benefit)	63			(115		)	101			(103		)
Net income	535			172			1,002			613
Less net income for noncontrolling interests	—			(1		)	(1		)	(3		)
Net income attributable to Eaton ordinary shareholders	$	535		$	171		$	1,001		$	610

14

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 the 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 JUNE 30, 2015
	Eaton Corporation plc			Eaton Corporation			Guarantors			Other subsidiaries			Consolidating adjustments			Total
Net sales	$	—		$	1,806		$	1,705		$	3,248		$	(1,387	)	$	5,372
Cost of products sold	—			1,433			1,273			2,322			(1,353		)	3,675
Selling and administrative expense	2			368			172			359			—			901
Research and development expense	—			66			49			43			—			158
Interest expense (income) - net	—			58			5			(2		)	(2		)	59
Other expense (income) - net	—			11			(7		)	(23		)	—			(19		)
Equity in earnings of    subsidiaries, net of tax	(619		)	(62		)	(805		)	(129		)	1,615			—
Intercompany expense (income) - net	82			(267		)	481			(296		)	—			—
Income before income taxes	535			199			537			974			(1,647		)	598
Income tax expense (benefit)	—			41			(38		)	75			(15		)	63
Net income	535			158			575			899			(1,632		)	535
Less net income for    noncontrolling interests	—			—			—			(1		)	1			—
Net income attributable to    Eaton ordinary shareholders	$	535		$	158		$	575		$	898		$	(1,631	)	$	535
Other comprehensive income	$	230		$	16		$	234		$	282		$	(532	)	$	230
Total comprehensive income   attributable to Eaton   ordinary shareholders	$	765		$	174		$	809		$	1,180		$	(2,163	)	$	765

15

CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME FOR THE THREE MONTHS ENDED JUNE 30, 2014
	Eaton Corporation plc			Eaton Corporation			Guarantors			Other subsidiaries			Consolidating adjustments			Total
Net sales	$	—		$	1,750		$	1,779		$	3,354		$	(1,116	)	$	5,767
Cost of products sold	—			1,378			1,288			2,473			(1,114		)	4,025
Selling and administrative expense	(2		)	370			193			423			—			984
Litigation settlements	—			644			—			—			—			644
Research and development expense	—			62			52			54			—			168
Interest expense (income) - net	—			55			6			(8		)	2			55
Other income - net	—			(50		)	(95		)	(21		)	—			(166		)
Equity in (earnings) loss of    subsidiaries, net of tax	(231		)	(194		)	(256		)	214			467			—
Intercompany expense (income) - net	62			(47		)	146			(161		)	—			—
Income (loss) before income taxes	171			(468		)	445			380			(471		)	57
Income tax (benefit) expense	—			(255		)	78			63			(1		)	(115		)
Net income (loss)	171			(213		)	367			317			(470		)	172
Less net income for    noncontrolling interests	—			—			—			(1		)	—			(1		)
Net income (loss) attributable to    Eaton ordinary shareholders	$	171		$	(213	)	$	367		$	316		$	(470	)	$	171
Other comprehensive income	$	83		$	37		$	90		$	116		$	(243	)	$	83
Total comprehensive income    (loss) attributable to Eaton    ordinary shareholders	$	254		$	(176	)	$	457		$	432		$	(713	)	$	254

CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME FOR THE SIX MONTHS ENDED JUNE 30, 2015
	Eaton Corporation plc			Eaton Corporation			Guarantors			Other subsidiaries			Consolidating adjustments			Total
Net sales	$	—		$	3,508		$	3,401		$	6,364		$	(2,678	)	$	10,595
Cost of products sold	—			2,743			2,568			4,599			(2,642		)	7,268
Selling and administrative expense	4			745			348			719			—			1,816
Research and development expense	—			137			94			85			—			316
Interest expense (income) - net	—			112			11			(7		)	—			116
Other expense (income) - net	—			6			(8		)	(22		)	—			(24		)
Equity in earnings of    subsidiaries, net of tax	(1,164		)	(273		)	(1,518		)	(258		)	3,213			—
Intercompany expense (income) - net	159			(308		)	752			(603		)	—			—
Income before income taxes	1,001			346			1,154			1,851			(3,249		)	1,103
Income tax expense (benefit)	—			19			(17		)	116			(17		)	101
Net income	1,001			327			1,171			1,735			(3,232		)	1,002
Less net income for    noncontrolling interests	—			—			—			(2		)	1			(1		)
Net income attributable to    Eaton ordinary shareholders	$	1,001		$	327		$	1,171		$	1,733		$	(3,231	)	$	1,001
Other comprehensive (loss) income	$	(404	)	$	62		$	(386	)	$	(464	)	$	788		$	(404	)
Total comprehensive income attributable to Eaton   ordinary shareholders	$	597		$	389		$	785		$	1,269		$	(2,443	)	$	597

16

CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME FOR THE SIX MONTHS ENDED JUNE 30, 2014
	Eaton Corporation plc			Eaton Corporation			Guarantors			Other subsidiaries			Consolidating adjustments			Total
Net sales	$	—		$	3,417		$	3,420		$	6,645		$	(2,223	)	$	11,259
Cost of products sold	—			2,720			2,506			4,865			(2,208		)	7,883
Selling and administrative expense	—			731			393			822			—			1,946
Litigation settlements	—			644			—			—			—			644
Research and development expense	—			122			102			106			—			330
Interest expense (income) - net	—			114			13			(14		)	4			117
Other income- net	—			(45		)	(92		)	(34		)	—			(171		)
Equity in (earnings) loss of    subsidiaries, net of tax	(700		)	(187		)	(747		)	259			1,375			—
Intercompany expense (income) - net	90			(117		)	278			(251		)	—			—
Income (loss) before income taxes	610			(565		)	967			892			(1,394		)	510
Income tax (benefit) expense	—			(269		)	71			101			(6		)	(103		)
Net income (loss)	610			(296		)	896			791			(1,388		)	613
Less net income for    noncontrolling interests	—			—			—			(3		)	—			(3		)
Net income (loss) attributable to    Eaton ordinary shareholders	$	610		$	(296	)	$	896		$	788		$	(1,388	)	$	610
Other comprehensive income	$	86		$	67		$	115		$	70		$	(252	)	$	86
Total comprehensive income (loss) attributable to Eaton ordinary shareholders	$	696		$	(229	)	$	1,011		$	858		$	(1,640	)	$	696

17

CONDENSED CONSOLIDATING BALANCE SHEETS JUNE 30, 2015
	Eaton Corporation plc		Eaton Corporation		Guarantors		Other subsidiaries		Consolidating adjustments			Total
Assets
Current assets
Cash	$	—	$	14	$	8	$	281	$	—		$	303
Short-term investments	—		—		1		126		—			127
Accounts receivable - net	—		549		1,075		2,216		—			3,840
Intercompany accounts    receivable	2		816		3,751		3,063		(7,632		)	—
Inventory	—		356		691		1,479		(87		)	2,439
Deferred income taxes	—		348		128		77		—			553
Prepaid expenses and    other current assets	—		108		43		212		19			382
Total current assets	2		2,191		5,697		7,454		(7,700		)	7,644
Property, plant and    equipment - net	—		950		752		1,978		—			3,680
Other noncurrent assets
Goodwill	—		1,355		6,256		6,087		—			13,698
Other intangible assets	—		189		3,717		2,376		—			6,282
Deferred income taxes	—		873		5		162		(790		)	250
Investment in subsidiaries	28,861		12,461		58,835		9,831		(109,988		)	—
Intercompany loans receivable	—		7,656		1,430		42,492		(51,578		)	—
Other assets	—		559		132		334		—			1,025
Total assets	$	28,863	$	26,234	$	76,824	$	70,714	$	(170,056	)	$	32,579
Liabilities and    shareholders’ equity
Current liabilities
Short-term debt	$	—	$	125	$	—	$	14	$	—		$	139
Current portion of    long-term debt	—		601		241		—		—			842
Accounts payable	—		468		325		1,138		—			1,931
Intercompany accounts payable	84		4,023		2,429		1,096		(7,632		)	—
Accrued compensation	—		58		44		225		—			327
Other current liabilities	—		605		312		911		(11		)	1,817
Total current liabilities	84		5,880		3,351		3,384		(7,643		)	5,056
Noncurrent liabilities
Long-term debt	—		7,069		683		18		—			7,770
Pension liabilities	—		587		140		825		—			1,552
Other postretirement    benefits liabilities	—		280		136		91		—			507
Deferred income taxes	—		14		1,105		547		(790		)	876
Intercompany loans payable	13,026		1,801		35,774		977		(51,578		)	—
Other noncurrent liabilities	—		424		172		419		—			1,015
Total noncurrent liabilities	13,026		10,175		38,010		2,877		(52,368		)	11,720
Shareholders’ equity
Eaton shareholders' equity	15,753		10,179		35,463		64,410		(110,052		)	15,753
Noncontrolling interests	—		—		—		43		7			50
Total equity	15,753		10,179		35,463		64,453		(110,045		)	15,803
Total liabilities and equity	$	28,863	$	26,234	$	76,824	$	70,714	$	(170,056	)	$	32,579

18

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

19

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS FOR THE SIX MONTHS ENDED JUNE 30, 2015
	Eaton Corporation plc			Eaton Corporation			Guarantors			Other subsidiaries			Consolidating adjustments			Total
Net cash (used in) provided by    operating activities	$	(84	)	$	(272	)	$	95		$	917		$	—		$	656
Investing activities
Cash paid for acquisitions of businesses, net of cash acquired	—			—			—			(38		)	—			(38		)
Capital expenditures for property,    plant and equipment	—			(47		)	(63		)	(136		)	—			(246		)
Sales of short-term investments - net	—			—			—			109			—			109
Investments in affiliates	(1,482		)	—			(1,176		)	(1,482		)	4,140			—
Loans to affiliates	—			(307		)	(39		)	(6,027		)	6,373			—
Repayments of loans from affiliates	—			306			11			4,720			(5,037		)	—
Proceeds from sale of business	—			—			—			1			—			1
Other - net	—			(31		)	28			(30		)	—			(33		)
Net cash used in investing activities	(1,482		)	(79		)	(1,239		)	(2,883		)	5,476			(207		)
Financing activities
Proceeds from borrowings	—			125			—			12			—			137
Payments on borrowings	—			(101		)	(301		)	(2		)	—			(404		)
Proceeds from borrowings from    affiliates	2,242			3,775			314			42			(6,373		)	—
Payments on borrowings from    affiliates	(39		)	(3,824		)	(1,160		)	(14		)	5,037			—
Capital contributions from affiliates	—			1,176			1,482			1,482			(4,140		)	—
Other intercompany financing    activities	—			(959		)	804			155			—			—
Cash dividends paid	(514		)	—			—			—			—			(514		)
Exercise of employee stock options	46			—			—			—			—			46
Repurchase of shares	(170		)	—			—			—			—			(170		)
Other - net	—			—			—			(7		)	—			(7		)
Net cash provided by (used in)    financing activities	1,565			192			1,139			1,668			(5,476		)	(912		)
Effect of currency on cash	—			—			—			(15		)	—			(15		)
Total decrease in cash	(1		)	(159		)	(5		)	(313		)	—			(478		)
Cash at the beginning of the period	1			173			13			594			—			781
Cash at the end of the period	$	—		$	14		$	8		$	281		$	—		$	303

20

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS FOR THE SIX MONTHS ENDED JUNE 30, 2014
	Eaton Corporation plc			Eaton Corporation			Guarantors			Other subsidiaries			Consolidating adjustments			Total
Net cash provided by (used in)    operating activities	$	8		$	(229	)	$	7		$	859		$	—		$	645
Investing activities
Capital expenditures for property,    plant and equipment	—			(51		)	(61		)	(124		)	—			(236		)
(Purchases) sales of short-term investments - net	—			—			(155		)	317			—			162
Loans to affiliates	—			(151		)	—			(3,191		)	3,342			—
Repayments of loans from affiliates	—			176			187			2,454			(2,817		)	—
Proceeds from sale of businesses	—			93			175			5			—			273
Other - net	—			(26		)	5			(30		)	—			(51		)
Net cash provided by (used in)    investing activities	—			41			151			(569		)	525			148
Financing activities
Payments on borrowings	—			(551		)	(1		)	(24		)	—			(576		)
Proceeds from borrowings from    affiliates	327			2,754			254			7			(3,342		)	—
Payments on borrowings from    affiliates	(15		)	(2,125		)	(320		)	(357		)	2,817			—
Other intercompany financing activities	219			84			(81		)	(222		)	—			—
Cash dividends paid	(467		)	—			—			—			—			(467		)
Exercise of employee stock options	44			—			—			—			—			44
Repurchase of shares	(99		)	—			—			—			—			(99		)
Excess tax benefit from    equity-based compensation	—			20			—			—			—			20
Net cash provided by (used in)    financing activities	9			182			(148		)	(596		)	(525		)	(1,078		)
Effect of currency on cash	—			—			—			1			—			1
Total increase (decrease) in cash	17			(6		)	10			(305		)	—			(284		)
Cash at the beginning of the period	3			51			10			851			—			915
Cash at the end of the period	$	20		$	45		$	20		$	546		$	—		$	631

21

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 June 30				Six months ended June 30
	2015		2014		2015		2014
Net sales	$	5,372	$	5,767	$	10,595	$	11,259
Net income attributable to Eaton ordinary shareholders	535		171		1,001		610
Net income per ordinary share - diluted	$	1.14	$	0.36	$	2.13	$	1.27

During the second quarter of 2014, the Company's results of operations were impacted by the litigation settlements, partially offset by the gain on the divestiture of Eaton's Aerospace Power Distribution Management Solutions and Integrated Cockpit Solutions businesses. Additional information on the litigation settlements and sale of businesses is presented in Note 7 and Note 2, respectively, to the Condensed Consolidated Financial Statements.

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.

22

Consolidated Financial Results

	Three months ended June 30						Increase (decrease)		Six months ended June 30						Increase (decrease)
	2015			2014					2015			2014
Net sales	$	5,372		$	5,767		(7	)%	$	10,595		$	11,259		(6	)%
Gross profit	1,697			1,742			(3	)%	3,327			3,376			(1	)%
Percent of net sales	31.6		%	30.2		%			31.4		%	30.0		%
Income before income taxes	598			57			949	%	1,103			510			116	%
Net income	$	535		$	172		211	%	$	1,002		$	613		63	%
Less net income for noncontrolling interests	—			(1		)			(1		)	(3		)
Net income attributable to Eaton    ordinary shareholders	535			171			213	%	1,001			610			64	%
Excluding acquisition integration charges (after-tax)	8			23					15			67
Operating earnings	$	543		$	194		180	%	$	1,016		$	677		50	%
Net income per ordinary share - diluted	$	1.14		$	0.36		217	%	$	2.13		$	1.27		68	%
Excluding per share impact of acquisition    integration charges costs (after-tax)	0.02			0.05					0.03			0.14
Operating earnings per ordinary share	$	1.16		$	0.41		183	%	$	2.16		$	1.41		53	%

Net Sales

Net sales decreased in the second quarter and first six months of 2015 compared to the second quarter and first six months of 2014 due to a decrease of 6% from the impact of currency translation. Organic sales declined 1% during the second quarter of 2015 compared to the second quarter of 2014. The decrease in organic sales is primarily due to weakening demand in several of the Company's end markets.

Gross Profit

Gross profit margin increased from 30.2% in the second quarter of 2014 to 31.6% in the second quarter of 2015. Gross profit margin during the first six months increased from 30.0% in 2014 to 31.4% in 2015. The increase in the gross profit margin in the second quarter and first six months of 2015 was primarily due to actions taken over the past year to realize greater efficiencies and the beneficial impact of new product introductions.

Income Taxes

The effective income tax rate for the second quarter and first six months of 2015 was expense of 11% and 9%, respectively. The effective income tax rate for the second quarter and first six months of 2014 was a benefit of 203% and 20%, respectively. Excluding the litigation settlements and related legal costs, as well as the gain on the sale of Eaton's Aerospace Power Distribution Management Solutions and Integrated Cockpit Solutions businesses, which represents a total pre-tax expense of $494 and occurred in the second quarter of 2014, the effective income tax rate was expense of 8% and 6% for the second quarter and first six months of 2014, respectively. See Note 7 and Note 2 for additional information about legal contingencies and the sale of businesses, respectively. The increase in the effective tax rate in the second quarter and first six months 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 22, of $543 in the second quarter of 2015 increased 180% compared to Operating earnings of $194 in the second of 2014. Operating earnings for the first six months of 2015 were $1,016, an increase of 50% compared to Operating earnings of $677 in the first six months of 2014. The increase in Operating earnings in the second quarter and first six months of 2015 was primarily due to lower income in the second quarter of 2014 as a result of the litigation settlements, which was partially offset by the gain on the sale of the Aerospace businesses. Excluding litigation settlements and gain on sale, operating earnings improved due to higher segment operating margins and lower corporate costs, offset by the impact of currency translation and a higher effective tax rate.

Operating earnings per ordinary share increased to $1.16 in the second quarter of 2015 compared to $0.41 in the second quarter of 2014. Operating earnings per ordinary share increased to $2.16 in the first six months of 2015 compared to $1.41 in the first six months of 2014. The increase in Operating earnings per ordinary share is due to higher Operating earnings and the impact of the Company's share repurchases over the last year.

23

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.

Electrical Products

	Three months ended June 30						Decrease		Six months ended June 30						Decrease
	2015			2014					2015			2014
Net sales	$	1,784		$	1,832		(3	)%	$	3,475		$	3,558		(2	)%
Operating profit	$	276		$	300		(8	)%	$	536		$	550		(3	)%
Operating margin	15.5		%	16.4		%			15.4		%	15.5		%
Acquisition integration charges	$	6		$	12				$	12		$	41
Before acquisition integration charges
Operating profit	$	282		$	312		(10	)%	$	548		$	591		(7	)%
Operating margin	15.8		%	17.0		%			15.8		%	16.6		%

Net sales decreased 3% in the second quarter of 2015 compared to the second quarter of 2014 due to a decrease of 6% from the impact of currency translation, partially offset by an increase in organic sales of 3%. Net sales decreased 2% in the first six months of 2015 due to a decrease of 5% from the impact of currency translation, partially offset by an increase in organic sales of 3%. Organic sales growth in the second quarter and first six months of 2015 was due to strength in the Americas region.

Operating margin before acquisition integration charges decreased from 17.0% in the second quarter of 2014 to 15.8% in the second quarter of 2015. Operating margin before acquisition integration charges decreased from 16.6% in the first six months of 2014 to 15.8% in the first six months of 2015. The decrease in operating margin during 2015 was primarily due to unfavorable mix and the impact of exchange on sales to Canada.

Electrical Systems and Services

	Three months ended June 30						Increase (decrease)		Six months ended June 30						Increase (decrease)
	2015			2014					2015			2014
Net sales	$	1,502		$	1,628		(8	)%	$	2,950		$	3,152		(6	)%
Operating profit	$	223		$	194		15	%	$	409		$	363		13	%
Operating margin	14.8		%	11.9		%			13.9		%	11.5		%
Acquisition integration charges	$	4		$	13				$	7		$	39
Before acquisition integration charges
Operating profit	$	227		$	207		10	%	$	416		$	402		3	%
Operating margin	15.1		%	12.7		%			14.1		%	12.8		%

Net sales decreased 8% in the second quarter of 2015 compared to the second quarter of 2014 due to a decrease of 4% from the impact of currency translation and a decrease in organic sales of 4%. Net sales decreased 6% in the first six months of 2015 compared to 2014 due to a decrease of 4% from the impact of currency translation and a decrease in organic sales of 2%. The organic sales decline during the second quarter of 2015 was primarily due to weakness in global oil and gas and other industrial markets.

Operating margin before acquisition integration charges increased from 12.7% in the second quarter of 2014 to 15.1% in the second quarter of 2015. Operating margin before integration charges increased from 12.8% in the first six months of 2014 to 14.1% in 2015. The increase in operating margin in the second and first six months of 2015 was primarily due to operational efficiency improvements.

24

Hydraulics

	Three months ended June 30						Decrease		Six months ended June 30						Decrease
	2015			2014					2015			2014
Net sales	$	643		$	787		(18	)%	$	1,308		$	1,569		(17	)%
Operating profit	$	74		$	94		(21	)%	$	140		$	202		(31	)%
Operating margin	11.5		%	11.9		%			10.7		%	12.9		%
Acquisition integration charges	$	1		$	5				$	2		$	9
Before acquisition integration charges
Operating profit	$	75		$	99		(24	)%	$	142		$	211		(33	)%
Operating margin	11.7		%	12.6		%			10.9		%	13.4		%

Net sales decreased 18% in the second quarter of 2015 compared to the second quarter of 2014 due to a decrease of organic sales of 11% and a decrease of 7% from the impact of currency translation. Net sales decreased 17% in the first six months 2015 compared to 2014 due to a decrease of organic sales of 10% and a decrease of 7% from the impact of currency translation. The decrease in organic sales in the second quarter and first six months of 2015 was primarily due to weakness in the global agricultural and the China construction equipment markets.

Operating margin before acquisition integration charges decreased from 12.6% in the second quarter of 2014 to 11.7% in the second quarter of 2015. Operating margin before acquisition integration charges decreased from 13.4% in the first six months of 2014 to 10.9% in 2015. The decrease in operating margin in the second quarter and first six months of 2015 was primarily due to lower sales volumes.

Aerospace

	Three months ended June 30						Increase (decrease)		Six months ended June 30						Increase (decrease)
	2015			2014					2015			2014
Net sales	$	454		$	486		(7	)%	$	918		$	950		(3	)%
Operating profit	$	77		$	69		12	%	$	154		$	131		18	%
Operating margin	17.0		%	14.2		%			16.8		%	13.8		%

Net sales in the second quarter of 2015 decreased 7% compared to the second quarter of 2014 due to a decrease of 3% from the impact of currency translation, a decrease of 2% from the divestiture of Eaton's Aerospace Power Distribution Management Solutions and Integrated Cockpit Solutions businesses in 2014, and a 2% decrease in organic sales. The decrease in organic sales in the second quarter of 2015 reflects the very strong sales in the second quarter of 2014 as a result of cost reimbursements on certain engineering programs. Without these reimbursements in 2014, organic sales in the second quarter 2015 increased 3% over the second quarter of 2014. Net sales decreased 3% during the first six months of 2015 compared to 2014 due to a decrease of 3% from the impact of currency translation and a decrease of 3% from the Aerospace divestitures, as noted above, which was partially offset by a 3% increase in organic sales. The increase in organic sales during 2015 related to higher aftermarket sales and strength in commercial OEM markets.

Operating margin increased from 14.2% in the second quarter of 2014 to 17.0% in the second quarter of 2015. Operating margin increased from 13.8% in the first six months of 2014 compared to 16.8% in the first six months of 2015. The increase in operating margin in the second quarter and first six months of 2015 was primarily due to favorable mix.

25

Vehicle

	Three months ended June 30						Increase (decrease)		Six months ended June 30						Increase (decrease)
	2015			2014					2015			2014
Net sales	$	989		$	1,034		(4	)%	$	1,944		$	2,030		(4	)%
Operating profit	$	190		$	155		23	%	$	354		$	306		16	%
Operating margin	19.2		%	15.0		%			18.2		%	15.1		%

Net sales decreased 4% in the second quarter and first six months of 2015 compared to the second quarter and first six months 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 2015 was primarily due to improved demand in the North American truck and automotive markets, partially offset by weakness in South American markets.

Operating margin increased from 15.0% in the second quarter of 2014 to 19.2% in the second quarter of 2015. Operating margin increased from 15.1% in the first six months of 2014 to 18.2% in the first six months of 2015. The increase in operating margin in the second quarter and first six months of 2015 was primarily due to higher organic sales, favorable mix and the impact of certain restructuring activities taken in 2014 to generate ongoing efficiencies.

Corporate Expense

	Three months ended June 30					Increase (decrease)		Six months ended June 30					Decrease
	2015		2014					2015		2014
Litigation settlements	$	—	$	644		(100	)%	$	—	$	644		(100	)%
Amortization of intangible assets	102		109			(6	)%	204		219			(7	)%
Interest expense - net	59		55			7	%	116		117			(1	)%
Pension and other postretirement    benefits expense	33		32			3	%	61		83			(27	)%
Gain on divestiture of Aerospace businesses	—		(156		)	(100	)%	—		(156		)	(100	)%
Other corporate expense - net	48		71			(32	)%	109		135			(19	)%
Total corporate expense	$	242	$	755		(68	)%	$	490	$	1,042		(53	)%

Total Corporate expense decreased 68% from $755 in the second quarter of 2014 to $242 in the second quarter of 2015. Total Corporate expense decreased 53% from $1,042 in the first six months of 2014 to $490 in first six months of 2015. The decrease was primarily due to litigation settlements of $644, partially offset by a gain of $156 on the divestiture of Eaton's Aerospace Power Distribution Management Solutions and Integrated Cockpit Solutions businesses. Excluding the litigation settlement charge and gain on sale, corporate expenses decreased 9% and 12% for the three and six months ending June 30, 2015 as compared to three and six months ended June 30, 2014, respectively. The decrease for the three months ended June 30, 2015 is primarily due to corporate cost reduction actions. The decrease for the six months ending June 30, 2015 is also due to lower Pension and other postretirement benefits expense related to lower lump sum settlements in the first quarter of 2015.

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 June 30, 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.

26

Sources and Uses of Cash

Operating Cash Flow

Net cash provided by operating activities was $656 in the first six months of 2015, an increase of $11 compared to $645 in the first six months of 2014.

Investing Cash Flow

Net cash used in investing activities was $207 in the first six months of 2015, a decrease of $355 compared to net cash provided by investing activities of $148 in the first six months of 2014. Investing cash flows were impacted by the absence of proceeds from the sale of businesses totaling $273 in 2014, which primarily related to the Aerospace divestitures in 2014. The remaining decrease is due to cash paid for acquisitions of businesses of $38 in 2015 and a $53 decline in proceeds from the sale of short-term investments, which was $162 in 2014 to $109 in 2015.

Financing Cash Flow

Net cash used in financing activities was $912 in the first six months of 2015, a decrease of $166 in the use of cash compared to $1,078 in the first six months of 2014. The lower use of cash was primarily due to proceeds obtained from short-term borrowings, which totaled $137 in 2015 and a decrease of $172 in payments on long-term borrowings, offset by increase of $71 in share repurchases and $47 in dividends.

FORWARD-LOOKING STATEMENTS

This Form 10-Q Report contains forward-looking statements concerning litigation developments, capital expenditures and restructuring charges, among 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 June 30, 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 second 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.

27

PART II — OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS.

Information regarding the Company's current legal proceedings is presented in Note 7 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 6. EXHIBITS.

Exhibits — See Exhibit Index attached.

28

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:	July 29, 2015	By:	/s/ Richard H. Fearon
			Richard H. Fearon
			Principal Financial Officer
			(On behalf of the registrant and as Principal Financial Officer)

29

Eaton Corporation plc

Second 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 *
91.1	FRS 102 Notification *
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 June 30, 2015 and 2014, (ii) Consolidated Statements of Comprehensive Income for the three months ended June 30, 2015 and 2014, (iii) Condensed Consolidated Balance Sheets at June 30, 2015 and December 31, 2014, (iv) Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2015 and 2014 and (v) Notes to Condensed Consolidated Financial Statements for the six months ended June 30, 2015.

30

EX-12

Eaton Corporation plc

Second Quarter 2015 Report on Form 10-Q

Item 6

Exhibit 12

Ratio of Earnings to Fixed Charges

	Six months ended June 30			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	$	1,103		$	1,761		$	1,884	$	1,251		$	1,553		$	1,036
Adjustments
(Income) losses of equity investees	(6		)	(6		)	2		(2		)	(2		)	(14		)
Distributed income of equity investees	5			4			77		19			3			15
Interest expensed	119			250			290		165			154			162
Amortization of debt issue costs	4			9			10		74			4			4
Estimated portion of rent expense representing interest	38			81			80		66			65			57
Amortization of capitalized interest	3			14			13		12			10			10
Adjusted income from continuing operations before    income taxes	$	1,266		$	2,113		$	2,356	$	1,585		$	1,787		$	1,270
Fixed charges
Interest expensed	$	119		$	250		$	290	$	165		$	154		$	162
Interest capitalized	7			13			11		23			18			8
Amortization of debt issue costs	4			9			10		74			4			4
Estimated portion of rent expense representing interest	38			81			80		66			65			57
Total fixed charges	$	168		$	353		$	391	$	328		$	241		$	231
Ratio of earnings to fixed charges	7.54			5.99			6.03		4.83			7.41			5.50

EX-31.1

Eaton Corporation plc

Second 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:	July 29, 2015	/s/ Alexander M. Cutler
		Alexander M. Cutler
		Principal Executive Officer

EX-31.2

Eaton Corporation plc

Second 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:	July 29, 2015	/s/ Richard H. Fearon
		Richard H. Fearon
		Principal Financial Officer

EX-32.1

Eaton Corporation plc

Second 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 June 30, 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:	July 29, 2015	/s/ Alexander M. Cutler
		Alexander M. Cutler
		Principal Executive Officer

EX-32.2

Eaton Corporation plc

Second 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 June 30, 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:	July 29, 2015	/s/ Richard H. Fearon
		Richard H. Fearon
		Principal Financial Officer

EX-99.1

Exhibit 99.1

FRS 102 Notification

The Financial Reporting Council (FRC) (the body responsible for setting Irish standards for accounting, auditing and actuarial work in Ireland) has established three new financial reporting options to be used in place of current Irish Generally Accepted Accounting Principles (Irish GAAP). The standalone financial statements of Eaton Corporation plc, which are included in the company’s annual Irish statutory accounts and have previously been prepared under Irish GAAP, are required to adopt one of these new reporting standards.

Eaton Corporation plc has elected to prepare its standalone financial statements under the option of FRS 102 - the Financial Reporting Standard applicable in the Republic of Ireland with reduced disclosures. The Company selected this option because it is the most consistent with Irish GAAP.

Shareholders that object to the company’s adoption of FRS 102 in the manner discussed above must advise the company by August 31, 2015 to the address below. Please provide reasons for any objection and indicate the number of ordinary shares you hold as of July 31, 2015.

The adoption of FRS 102 in the manner discussed above will not impact the annual Form 10-K or quarterly Form 10-Q filings with the U.S. Securities and Exchange Commission, which are prepared under U.S. Generally Accepted Accounting Principles.

Thomas E. Moran

Senior Vice President and Secretary

Eaton Corporation plc

Eaton House

30 Pembroke Road

Dublin 4, Ireland

XML

Reclassifications Out of Accumulated Other Comprehensive Loss (Details) $ in Millions		6 Months Ended
		Jun. 30, 2015 USD ($)
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Actuarial loss and prior service cost	[1]	$ (114)
Tax benefit		40
Total, net of tax		(74)
Tax expense		(2)
Total, net of tax		4
Total reclassifications for the period		(70)
Cost of products sold [Member] | Currency exchange contracts [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Currency exchange contracts		$ 6

[1] These components of Accumulated other comprehensive loss are included in the computation of net periodic benefit cost. See Note 6 for additional information about pension and other post retirement benefits items.

XML

Condensed Consolidating Financial Information (Details) - Nov. 20, 2012 - USD ($) $ in Millions	Total
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

Inventory (Details) - USD ($) $ in Millions	Jun. 30, 2015	Dec. 31, 2014
Inventory Disclosure [Abstract]
Raw materials	$ 1,130	$ 924
Work-in-process	279	422
Finished goods	1,152	1,201
Inventory at FIFO	2,561	2,547
Excess of FIFO over LIFO cost	(122)	(119)
Total inventory	$ 2,439	$ 2,428

XML

Goodwill (Details) - Jun. 30, 2015 - USD ($) $ in Millions	Total	Total
Goodwill [Roll Forward]
December 31, 2014		$ 13,893
Additions	$ 22
Reclassifications		0
Translation		(217)
June 30, 2015	13,698	13,698
Electrical Products [Member]
Goodwill [Roll Forward]
December 31, 2014		6,940
Additions		0
Reclassifications		(106)
Translation		(106)
June 30, 2015	6,728	6,728
Electrical Systems and Services [Member]
Goodwill [Roll Forward]
December 31, 2014		4,314
Additions		22
Reclassifications		106
Translation		(66)
June 30, 2015	4,376	4,376
Hydraulics [Member]
Goodwill [Roll Forward]
December 31, 2014		1,327
Additions		0
Reclassifications		0
Translation		(42)
June 30, 2015	1,285	1,285
Aerospace [Member]
Goodwill [Roll Forward]
December 31, 2014		962
Additions		0
Reclassifications		0
Translation		1
June 30, 2015	963	963
Vehicle [Member]
Goodwill [Roll Forward]
December 31, 2014		350
Additions		0
Reclassifications		0
Translation		(4)
June 30, 2015	$ 346	$ 346

XML

Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 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
June 30, 2015
Cash	$	303		$	303	$	—		$	—
Short-term investments	127			127		—			—
Net derivative contracts	73			—		73			—
Long-term debt converted to floating interest rates by    interest rate swaps - net	(71		)	—		(71		)	—
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 Balance Sheets (Details) - USD ($) $ in Millions	Jun. 30, 2015	Dec. 31, 2014	Jun. 30, 2014	Dec. 31, 2013
Condensed Consolidating Balance Sheets, Captions [Line Items]
Cash	$ 303	$ 781	$ 631	$ 915
Short-term investments	127	245
Accounts receivable - net	3,840	3,667
Intercompany accounts receivable	0	0
Inventory	2,439	2,428
Deferred income taxes	553	593
Prepaid expenses and other current assets	382	386
Total current assets	7,644	8,100
Property, plant and equipment - net	3,680	3,750
Goodwill	13,698	13,893
Other intangible assets	6,282	6,556
Deferred income taxes	250	228
Investment in subsidiaries	0	0
Intercompany loans receivables	0	0
Other assets	1,025	1,002
Total assets	32,579	33,529
Short-term debt	139	2
Current portion of long-term debt	842	1,008
Accounts payable	1,931	1,940
Intercompany accounts payable	0	0
Accrued compensation	327	420
Other current liabilities	1,817	1,985
Total current liabilities	5,056	5,355
Long-term debt	7,770	8,024
Pension liabilities	1,552	1,812
Other postretirement benefits liabilities	507	513
Deferred income taxes	876	901
Intercompany loans payable	0	0
Other noncurrent liabilities	1,015	1,085
Total noncurrent liabilities	11,720	12,335
Eaton shareholders' equity	15,753	15,786
Noncontrolling interests	50	53
Total equity	15,803	15,839
Total liabilities and equity	32,579	33,529
Eaton Corporation plc [Member]
Condensed Consolidating Balance Sheets, Captions [Line Items]
Cash	0	1	20	3
Short-term investments	0	0
Accounts receivable - net	0	0
Intercompany accounts receivable	2	2
Inventory	0	0
Deferred income taxes	0	0
Prepaid expenses and other current assets	0	0
Total current assets	2	3
Property, plant and equipment - net	0	0
Goodwill	0	0
Other intangible assets	0	0
Deferred income taxes	0	0
Investment in subsidiaries	28,861	26,612
Intercompany loans receivables	0	0
Other assets	0	0
Total assets	28,863	26,615
Short-term debt	0	0
Current portion of long-term debt	0	0
Accounts payable	0	0
Intercompany accounts payable	84	117
Accrued compensation	0	0
Other current liabilities	0	1
Total current liabilities	84	118
Long-term debt	0	0
Pension liabilities	0	0
Other postretirement benefits liabilities	0	0
Deferred income taxes	0	0
Intercompany loans payable	13,026	10,711
Other noncurrent liabilities	0	0
Total noncurrent liabilities	13,026	10,711
Eaton shareholders' equity	15,753	15,786
Noncontrolling interests	0	0
Total equity	15,753	15,786
Total liabilities and equity	28,863	26,615
Eaton Corporation [Member]
Condensed Consolidating Balance Sheets, Captions [Line Items]
Cash	14	173	45	51
Short-term investments	0	0
Accounts receivable - net	549	500
Intercompany accounts receivable	816	759
Inventory	356	397
Deferred income taxes	348	368
Prepaid expenses and other current assets	108	96
Total current assets	2,191	2,293
Property, plant and equipment - net	950	972
Goodwill	1,355	1,355
Other intangible assets	189	196
Deferred income taxes	873	889
Investment in subsidiaries	12,461	12,179
Intercompany loans receivables	7,656	7,542
Other assets	559	533
Total assets	26,234	25,959
Short-term debt	125	0
Current portion of long-term debt	601	702
Accounts payable	468	475
Intercompany accounts payable	4,023	4,125
Accrued compensation	58	112
Other current liabilities	605	674
Total current liabilities	5,880	6,088
Long-term debt	7,069	7,079
Pension liabilities	587	726
Other postretirement benefits liabilities	280	283
Deferred income taxes	14	0
Intercompany loans payable	1,801	2,723
Other noncurrent liabilities	424	457
Total noncurrent liabilities	10,175	11,268
Eaton shareholders' equity	10,179	8,603
Noncontrolling interests	0	0
Total equity	10,179	8,603
Total liabilities and equity	26,234	25,959
Guarantors [Member]
Condensed Consolidating Balance Sheets, Captions [Line Items]
Cash	8	13	20	10
Short-term investments	1	1
Accounts receivable - net	1,075	955
Intercompany accounts receivable	3,751	3,820
Inventory	691	637
Deferred income taxes	128	132
Prepaid expenses and other current assets	43	39
Total current assets	5,697	5,597
Property, plant and equipment - net	752	756
Goodwill	6,256	6,256
Other intangible assets	3,717	3,811
Deferred income taxes	5	10
Investment in subsidiaries	58,835	58,687
Intercompany loans receivables	1,430	2,249
Other assets	132	141
Total assets	76,824	77,507
Short-term debt	0	0
Current portion of long-term debt	241	304
Accounts payable	325	340
Intercompany accounts payable	2,429	3,449
Accrued compensation	44	59
Other current liabilities	312	340
Total current liabilities	3,351	4,492
Long-term debt	683	932
Pension liabilities	140	183
Other postretirement benefits liabilities	136	136
Deferred income taxes	1,105	1,160
Intercompany loans payable	35,774	36,162
Other noncurrent liabilities	172	183
Total noncurrent liabilities	38,010	38,756
Eaton shareholders' equity	35,463	34,259
Noncontrolling interests	0	0
Total equity	35,463	34,259
Total liabilities and equity	76,824	77,507
Other subsidiaries [Member]
Condensed Consolidating Balance Sheets, Captions [Line Items]
Cash	281	594	546	851
Short-term investments	126	244
Accounts receivable - net	2,216	2,212
Intercompany accounts receivable	3,063	4,101
Inventory	1,479	1,445
Deferred income taxes	77	93
Prepaid expenses and other current assets	212	247
Total current assets	7,454	8,936
Property, plant and equipment - net	1,978	2,022
Goodwill	6,087	6,282
Other intangible assets	2,376	2,549
Deferred income taxes	162	137
Investment in subsidiaries	9,831	9,145
Intercompany loans receivables	42,492	40,635
Other assets	334	328
Total assets	70,714	70,034
Short-term debt	14	2
Current portion of long-term debt	0	2
Accounts payable	1,138	1,125
Intercompany accounts payable	1,096	991
Accrued compensation	225	249
Other current liabilities	911	984
Total current liabilities	3,384	3,353
Long-term debt	18	13
Pension liabilities	825	903
Other postretirement benefits liabilities	91	94
Deferred income taxes	547	549
Intercompany loans payable	977	830
Other noncurrent liabilities	419	445
Total noncurrent liabilities	2,877	2,834
Eaton shareholders' equity	64,410	63,802
Noncontrolling interests	43	45
Total equity	64,453	63,847
Total liabilities and equity	70,714	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	(7,632)	(8,682)
Inventory	(87)	(51)
Deferred income taxes	0	0
Prepaid expenses and other current assets	19	4
Total current assets	(7,700)	(8,729)
Property, plant and equipment - net	0	0
Goodwill	0	0
Other intangible assets	0	0
Deferred income taxes	(790)	(808)
Investment in subsidiaries	(109,988)	(106,623)
Intercompany loans receivables	(51,578)	(50,426)
Other assets	0	0
Total assets	(170,056)	(166,586)
Short-term debt	0	0
Current portion of long-term debt	0	0
Accounts payable	0	0
Intercompany accounts payable	(7,632)	(8,682)
Accrued compensation	0	0
Other current liabilities	(11)	(14)
Total current liabilities	(7,643)	(8,696)
Long-term debt	0	0
Pension liabilities	0	0
Other postretirement benefits liabilities	0	0
Deferred income taxes	(790)	(808)
Intercompany loans payable	(51,578)	(50,426)
Other noncurrent liabilities	0	0
Total noncurrent liabilities	(52,368)	(51,234)
Eaton shareholders' equity	(110,052)	(106,664)
Noncontrolling interests	7	8
Total equity	(110,045)	(106,656)
Total liabilities and equity	$ (170,056)	$ (166,586)

XML

Fair Value Measurements Other Fair Value Measurements (Details) - USD ($) $ in Millions	Jun. 30, 2015	Dec. 31, 2014
Other Fair Value Measurements [Line Items]
Carrying value of long-term debt and current portion of long-term debt	$ 8,612	$ 9,032
Level 2 [Member]
Other Fair Value Measurements [Line Items]
Fair value of long-term debt and current portion of long-term debt	$ 8,879	$ 9,509

XML

Equity Changes in Shareholders's Equity (Details) - USD ($) shares in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Changes in Shareholders' equity
Balance at December 31, 2014			$ 15,839
Net income	$ 535	$ 172	1,002	$ 613
Other comprehensive loss	230	$ 83	(404)	$ 86
Cash dividends paid and accrued			(518)
Issuance of shares under equity-based compensation plans - net			54
Repurchase of shares			(170)
Balance at June 30, 2015	15,803		15,803
Parent [Member]
Changes in Shareholders' equity
Balance at December 31, 2014			15,786
Net income			1,001
Other comprehensive loss			(404)
Cash dividends paid and accrued			(514)
Issuance of shares under equity-based compensation plans - net			54
Repurchase of shares			(170)
Balance at June 30, 2015	15,753		15,753
Noncontrolling Interest [Member]
Changes in Shareholders' equity
Balance at December 31, 2014			53
Net income			1
Other comprehensive loss			0
Cash dividends paid and accrued			(4)
Issuance of shares under equity-based compensation plans - net			0
Repurchase of shares			0
Balance at June 30, 2015	$ 50		$ 50
2013 Program [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Stock Repurchase Program, Number of Shares Authorized to be Repurchased	40.0		40.0
Stock Repurchased During Period, Shares	1.4		2.4
Changes in Shareholders' equity
Repurchase of shares	$ (99)		$ (170)

XML

Business Segment Information (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Business Segment Information
Net sales	$ 5,372	$ 5,767	$ 10,595	$ 11,259
Litigation settlements	0	(644)	0	(644)
Interest expense - net	59	55	116	117
Pension and other postretirement benefits expense			(158)	(180)
Other corporate (expense) benefit - net	(19)	(166)	(24)	(171)
Income before income taxes	598	57	1,103	510
Income tax expense (benefit)	63	(115)	101	(103)
Net income	535	172	1,002	613
Less net income for noncontrolling interests	0	(1)	(1)	(3)
Net income attributable to Eaton ordinary shareholders	535	171	1,001	610
Total business segments [Member]
Business Segment Information
Net sales	5,372	5,767	10,595	11,259
Segment operating profit	840	812	1,593	1,552
Total business segments [Member] | Electrical Products [Member]
Business Segment Information
Net sales	1,784	1,832	3,475	3,558
Segment operating profit	276	300	536	550
Total business segments [Member] | Electrical Systems and Services [Member]
Business Segment Information
Net sales	1,502	1,628	2,950	3,152
Segment operating profit	223	194	409	363
Total business segments [Member] | Hydraulics [Member]
Business Segment Information
Net sales	643	787	1,308	1,569
Segment operating profit	74	94	140	202
Total business segments [Member] | Aerospace [Member]
Business Segment Information
Net sales	454	486	918	950
Segment operating profit	77	69	154	131
Total business segments [Member] | Vehicle [Member]
Business Segment Information
Net sales	989	1,034	1,944	2,030
Segment operating profit	190	155	354	306
Corporate [Member]
Business Segment Information
Litigation settlements	0	644	0	644
Amortization of intangible assets	(102)	(109)	(204)	(219)
Interest expense - net	(59)	(55)	(116)	(117)
Pension and other postretirement benefits expense	(33)	(32)	(61)	(83)
Other corporate (expense) benefit - net	$ (48)	$ 85	$ (109)	$ 21

XML

Restructuring Charges (Notes)

6 Months Ended

Jun. 30, 2015

Restructuring and Related Activities [Abstract]

Restructuring and Related Activities Disclosure [Text Block]

RESTRUCTURING CHARGES

The Company plans to implement certain restructuring activities in an effort to gain efficiencies in all business segments. These restructuring activities are anticipated to be $145, comprised primarily of severance costs, with $120 to occur in the second half of 2015 and $25 in 2016.

XML

Derivative Financial Instruments and Hedging Activities (Details) - USD ($) $ in Millions	6 Months Ended	12 Months Ended
	Jun. 30, 2015	Dec. 31, 2014
Derivatives not designated as hedges
Debt denominated in foreign currency designated as non-derivative net investment hedging instrument	$ 82	$ 84
Percentage of intercompany balance sheet exposure	100.00%
Other current assets [Member]
Derivatives designated as hedges
Derivative asset designated as hedging instrument	$ 10	8
Derivatives not designated as hedges
Derivative instruments not designated as hedging instruments, asset, at fair value	25	47
Other noncurrent assets [Member]
Derivatives designated as hedges
Derivative asset designated as hedging instrument	82	85
Other current liabilities [Member]
Derivatives designated as hedges
Derivative liability designated as hedging instrument	4	5
Derivatives not designated as hedges
Derivative instruments not designated as hedging instruments, liability, at fair value	28	52
Other noncurrent liabilities [Member]
Derivatives designated as hedges
Derivative liability designated as hedging instrument	12	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	25	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	28	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	81	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	10	10
Cash Flow Hedging [Member] | Currency exchange contracts [Member] | Other current assets [Member]
Derivatives designated as hedges
Derivative asset designated as hedging instrument	10	8
Cash Flow Hedging [Member] | Currency exchange contracts [Member] | Other noncurrent assets [Member]
Derivatives designated as hedges
Derivative asset designated as hedging instrument	1	1
Cash Flow Hedging [Member] | Currency exchange contracts [Member] | Other current liabilities [Member]
Derivatives designated as hedges
Derivative liability designated as hedging instrument	4	5
Cash Flow Hedging [Member] | Currency exchange contracts [Member] | Other noncurrent liabilities [Member]
Derivatives designated as hedges
Derivative liability designated as hedging instrument	2	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	533	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	$ 3,975	$ 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)

6 Months Ended

Jun. 30, 2015

Condensed Financial Statements, Captions [Line Items]

Condensed Consolidating Financial Statements [Table Text Block]

CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME FOR THE THREE MONTHS ENDED JUNE 30, 2015
	Eaton Corporation plc			Eaton Corporation			Guarantors			Other subsidiaries			Consolidating adjustments			Total
Net sales	$	—		$	1,806		$	1,705		$	3,248		$	(1,387	)	$	5,372
Cost of products sold	—			1,433			1,273			2,322			(1,353		)	3,675
Selling and administrative expense	2			368			172			359			—			901
Research and development expense	—			66			49			43			—			158
Interest expense (income) - net	—			58			5			(2		)	(2		)	59
Other expense (income) - net	—			11			(7		)	(23		)	—			(19		)
Equity in earnings of    subsidiaries, net of tax	(619		)	(62		)	(805		)	(129		)	1,615			—
Intercompany expense (income) - net	82			(267		)	481			(296		)	—			—
Income before income taxes	535			199			537			974			(1,647		)	598
Income tax expense (benefit)	—			41			(38		)	75			(15		)	63
Net income	535			158			575			899			(1,632		)	535
Less net income for    noncontrolling interests	—			—			—			(1		)	1			—
Net income attributable to    Eaton ordinary shareholders	$	535		$	158		$	575		$	898		$	(1,631	)	$	535
Other comprehensive income	$	230		$	16		$	234		$	282		$	(532	)	$	230
Total comprehensive income   attributable to Eaton   ordinary shareholders	$	765		$	174		$	809		$	1,180		$	(2,163	)	$	765

CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME FOR THE THREE MONTHS ENDED JUNE 30, 2014
	Eaton Corporation plc			Eaton Corporation			Guarantors			Other subsidiaries			Consolidating adjustments			Total
Net sales	$	—		$	1,750		$	1,779		$	3,354		$	(1,116	)	$	5,767
Cost of products sold	—			1,378			1,288			2,473			(1,114		)	4,025
Selling and administrative expense	(2		)	370			193			423			—			984
Litigation settlements	—			644			—			—			—			644
Research and development expense	—			62			52			54			—			168
Interest expense (income) - net	—			55			6			(8		)	2			55
Other income - net	—			(50		)	(95		)	(21		)	—			(166		)
Equity in (earnings) loss of    subsidiaries, net of tax	(231		)	(194		)	(256		)	214			467			—
Intercompany expense (income) - net	62			(47		)	146			(161		)	—			—
Income (loss) before income taxes	171			(468		)	445			380			(471		)	57
Income tax (benefit) expense	—			(255		)	78			63			(1		)	(115		)
Net income (loss)	171			(213		)	367			317			(470		)	172
Less net income for    noncontrolling interests	—			—			—			(1		)	—			(1		)
Net income (loss) attributable to    Eaton ordinary shareholders	$	171		$	(213	)	$	367		$	316		$	(470	)	$	171
Other comprehensive income	$	83		$	37		$	90		$	116		$	(243	)	$	83
Total comprehensive income    (loss) attributable to Eaton    ordinary shareholders	$	254		$	(176	)	$	457		$	432		$	(713	)	$	254

CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME FOR THE SIX MONTHS ENDED JUNE 30, 2015
	Eaton Corporation plc			Eaton Corporation			Guarantors			Other subsidiaries			Consolidating adjustments			Total
Net sales	$	—		$	3,508		$	3,401		$	6,364		$	(2,678	)	$	10,595
Cost of products sold	—			2,743			2,568			4,599			(2,642		)	7,268
Selling and administrative expense	4			745			348			719			—			1,816
Research and development expense	—			137			94			85			—			316
Interest expense (income) - net	—			112			11			(7		)	—			116
Other expense (income) - net	—			6			(8		)	(22		)	—			(24		)
Equity in earnings of    subsidiaries, net of tax	(1,164		)	(273		)	(1,518		)	(258		)	3,213			—
Intercompany expense (income) - net	159			(308		)	752			(603		)	—			—
Income before income taxes	1,001			346			1,154			1,851			(3,249		)	1,103
Income tax expense (benefit)	—			19			(17		)	116			(17		)	101
Net income	1,001			327			1,171			1,735			(3,232		)	1,002
Less net income for    noncontrolling interests	—			—			—			(2		)	1			(1		)
Net income attributable to    Eaton ordinary shareholders	$	1,001		$	327		$	1,171		$	1,733		$	(3,231	)	$	1,001
Other comprehensive (loss) income	$	(404	)	$	62		$	(386	)	$	(464	)	$	788		$	(404	)
Total comprehensive income attributable to Eaton   ordinary shareholders	$	597		$	389		$	785		$	1,269		$	(2,443	)	$	597

CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME FOR THE SIX MONTHS ENDED JUNE 30, 2014
	Eaton Corporation plc			Eaton Corporation			Guarantors			Other subsidiaries			Consolidating adjustments			Total
Net sales	$	—		$	3,417		$	3,420		$	6,645		$	(2,223	)	$	11,259
Cost of products sold	—			2,720			2,506			4,865			(2,208		)	7,883
Selling and administrative expense	—			731			393			822			—			1,946
Litigation settlements	—			644			—			—			—			644
Research and development expense	—			122			102			106			—			330
Interest expense (income) - net	—			114			13			(14		)	4			117
Other income- net	—			(45		)	(92		)	(34		)	—			(171		)
Equity in (earnings) loss of    subsidiaries, net of tax	(700		)	(187		)	(747		)	259			1,375			—
Intercompany expense (income) - net	90			(117		)	278			(251		)	—			—
Income (loss) before income taxes	610			(565		)	967			892			(1,394		)	510
Income tax (benefit) expense	—			(269		)	71			101			(6		)	(103		)
Net income (loss)	610			(296		)	896			791			(1,388		)	613
Less net income for    noncontrolling interests	—			—			—			(3		)	—			(3		)
Net income (loss) attributable to    Eaton ordinary shareholders	$	610		$	(296	)	$	896		$	788		$	(1,388	)	$	610
Other comprehensive income	$	86		$	67		$	115		$	70		$	(252	)	$	86
Total comprehensive income (loss) attributable to Eaton ordinary shareholders	$	696		$	(229	)	$	1,011		$	858		$	(1,640	)	$	696

CONDENSED CONSOLIDATING BALANCE SHEETS JUNE 30, 2015
	Eaton Corporation plc		Eaton Corporation		Guarantors		Other subsidiaries		Consolidating adjustments			Total
Assets
Current assets
Cash	$	—	$	14	$	8	$	281	$	—		$	303
Short-term investments	—		—		1		126		—			127
Accounts receivable - net	—		549		1,075		2,216		—			3,840
Intercompany accounts    receivable	2		816		3,751		3,063		(7,632		)	—
Inventory	—		356		691		1,479		(87		)	2,439
Deferred income taxes	—		348		128		77		—			553
Prepaid expenses and    other current assets	—		108		43		212		19			382
Total current assets	2		2,191		5,697		7,454		(7,700		)	7,644
Property, plant and    equipment - net	—		950		752		1,978		—			3,680
Other noncurrent assets
Goodwill	—		1,355		6,256		6,087		—			13,698
Other intangible assets	—		189		3,717		2,376		—			6,282
Deferred income taxes	—		873		5		162		(790		)	250
Investment in subsidiaries	28,861		12,461		58,835		9,831		(109,988		)	—
Intercompany loans receivable	—		7,656		1,430		42,492		(51,578		)	—
Other assets	—		559		132		334		—			1,025
Total assets	$	28,863	$	26,234	$	76,824	$	70,714	$	(170,056	)	$	32,579
Liabilities and    shareholders’ equity
Current liabilities
Short-term debt	$	—	$	125	$	—	$	14	$	—		$	139
Current portion of    long-term debt	—		601		241		—		—			842
Accounts payable	—		468		325		1,138		—			1,931
Intercompany accounts payable	84		4,023		2,429		1,096		(7,632		)	—
Accrued compensation	—		58		44		225		—			327
Other current liabilities	—		605		312		911		(11		)	1,817
Total current liabilities	84		5,880		3,351		3,384		(7,643		)	5,056
Noncurrent liabilities
Long-term debt	—		7,069		683		18		—			7,770
Pension liabilities	—		587		140		825		—			1,552
Other postretirement    benefits liabilities	—		280		136		91		—			507
Deferred income taxes	—		14		1,105		547		(790		)	876
Intercompany loans payable	13,026		1,801		35,774		977		(51,578		)	—
Other noncurrent liabilities	—		424		172		419		—			1,015
Total noncurrent liabilities	13,026		10,175		38,010		2,877		(52,368		)	11,720
Shareholders’ equity
Eaton shareholders' equity	15,753		10,179		35,463		64,410		(110,052		)	15,753
Noncontrolling interests	—		—		—		43		7			50
Total equity	15,753		10,179		35,463		64,453		(110,045		)	15,803
Total liabilities and equity	$	28,863	$	26,234	$	76,824	$	70,714	$	(170,056	)	$	32,579

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 SIX MONTHS ENDED JUNE 30, 2015
	Eaton Corporation plc			Eaton Corporation			Guarantors			Other subsidiaries			Consolidating adjustments			Total
Net cash (used in) provided by    operating activities	$	(84	)	$	(272	)	$	95		$	917		$	—		$	656
Investing activities
Cash paid for acquisitions of businesses, net of cash acquired	—			—			—			(38		)	—			(38		)
Capital expenditures for property,    plant and equipment	—			(47		)	(63		)	(136		)	—			(246		)
Sales of short-term investments - net	—			—			—			109			—			109
Investments in affiliates	(1,482		)	—			(1,176		)	(1,482		)	4,140			—
Loans to affiliates	—			(307		)	(39		)	(6,027		)	6,373			—
Repayments of loans from affiliates	—			306			11			4,720			(5,037		)	—
Proceeds from sale of business	—			—			—			1			—			1
Other - net	—			(31		)	28			(30		)	—			(33		)
Net cash used in investing activities	(1,482		)	(79		)	(1,239		)	(2,883		)	5,476			(207		)
Financing activities
Proceeds from borrowings	—			125			—			12			—			137
Payments on borrowings	—			(101		)	(301		)	(2		)	—			(404		)
Proceeds from borrowings from    affiliates	2,242			3,775			314			42			(6,373		)	—
Payments on borrowings from    affiliates	(39		)	(3,824		)	(1,160		)	(14		)	5,037			—
Capital contributions from affiliates	—			1,176			1,482			1,482			(4,140		)	—
Other intercompany financing    activities	—			(959		)	804			155			—			—
Cash dividends paid	(514		)	—			—			—			—			(514		)
Exercise of employee stock options	46			—			—			—			—			46
Repurchase of shares	(170		)	—			—			—			—			(170		)
Other - net	—			—			—			(7		)	—			(7		)
Net cash provided by (used in)    financing activities	1,565			192			1,139			1,668			(5,476		)	(912		)
Effect of currency on cash	—			—			—			(15		)	—			(15		)
Total decrease in cash	(1		)	(159		)	(5		)	(313		)	—			(478		)
Cash at the beginning of the period	1			173			13			594			—			781
Cash at the end of the period	$	—		$	14		$	8		$	281		$	—		$	303

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS FOR THE SIX MONTHS ENDED JUNE 30, 2014
	Eaton Corporation plc			Eaton Corporation			Guarantors			Other subsidiaries			Consolidating adjustments			Total
Net cash provided by (used in)    operating activities	$	8		$	(229	)	$	7		$	859		$	—		$	645
Investing activities
Capital expenditures for property,    plant and equipment	—			(51		)	(61		)	(124		)	—			(236		)
(Purchases) sales of short-term investments - net	—			—			(155		)	317			—			162
Loans to affiliates	—			(151		)	—			(3,191		)	3,342			—
Repayments of loans from affiliates	—			176			187			2,454			(2,817		)	—
Proceeds from sale of businesses	—			93			175			5			—			273
Other - net	—			(26		)	5			(30		)	—			(51		)
Net cash provided by (used in)    investing activities	—			41			151			(569		)	525			148
Financing activities
Payments on borrowings	—			(551		)	(1		)	(24		)	—			(576		)
Proceeds from borrowings from    affiliates	327			2,754			254			7			(3,342		)	—
Payments on borrowings from    affiliates	(15		)	(2,125		)	(320		)	(357		)	2,817			—
Other intercompany financing activities	219			84			(81		)	(222		)	—			—
Cash dividends paid	(467		)	—			—			—			—			(467		)
Exercise of employee stock options	44			—			—			—			—			44
Repurchase of shares	(99		)	—			—			—			—			(99		)
Excess tax benefit from    equity-based compensation	—			20			—			—			—			20
Net cash provided by (used in)    financing activities	9			182			(148		)	(596		)	(525		)	(1,078		)
Effect of currency on cash	—			—			—			1			—			1
Total increase (decrease) in cash	17			(6		)	10			(305		)	—			(284		)
Cash at the beginning of the period	3			51			10			851			—			915
Cash at the end of the period	$	20		$	45		$	20		$	546		$	—		$	631

XML

Business Segment Information (Tables)

6 Months Ended

Jun. 30, 2015

Segment Reporting [Abstract]

Business Segment Information

	Three months ended June 30						Six months ended June 30
	2015			2014			2015			2014
Net sales
Electrical Products	$	1,784		$	1,832		$	3,475		$	3,558
Electrical Systems and Services	1,502			1,628			2,950			3,152
Hydraulics	643			787			1,308			1,569
Aerospace	454			486			918			950
Vehicle	989			1,034			1,944			2,030
Total net sales	$	5,372		$	5,767		$	10,595		$	11,259
Segment operating profit
Electrical Products	$	276		$	300		$	536		$	550
Electrical Systems and Services	223			194			409			363
Hydraulics	74			94			140			202
Aerospace	77			69			154			131
Vehicle	190			155			354			306
Total segment operating profit	840			812			1,593			1,552
Corporate
Litigation settlements	—			(644		)	—			(644		)
Amortization of intangible assets	(102		)	(109		)	(204		)	(219		)
Interest expense - net	(59		)	(55		)	(116		)	(117		)
Pension and other postretirement benefits expense	(33		)	(32		)	(61		)	(83		)
Other corporate (expense) benefit - net	(48		)	85			(109		)	21
Income before income taxes	598			57			1,103			510
Income tax expense (benefit)	63			(115		)	101			(103		)
Net income	535			172			1,002			613
Less net income for noncontrolling interests	—			(1		)	(1		)	(3		)
Net income attributable to Eaton ordinary shareholders	$	535		$	171		$	1,001		$	610

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Amounts Recognized in Accumulated Other Comprehensive Income (Details) - Cash flow hedges [Member] - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Interest expense - net [Member] | Floating-to-fixed interest rate swaps [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) recognized in other comprehensive (loss) income	$ 0	$ 0	$ 0	$ 0
Gain (loss) reclassified from accumulated other comprehensive loss	0	(1)	0	(1)
Cost of products sold [Member] | Currency exchange contracts [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) recognized in other comprehensive (loss) income	8	3	10	5
Gain (loss) reclassified from accumulated other comprehensive loss	4	2	6	4
Cost of products sold or Interest expense - net [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) recognized in other comprehensive (loss) income	8	3	10	5
Gain (loss) reclassified from accumulated other comprehensive loss	$ 4	$ 1	$ 6	$ 3

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Acquisition and Sale of Businesses Sale of Business (Details) - Aerospace Power Distribution Management Solutions and Integrated Cockpit Solutions businesses [Member] - Aerospace [Member] $ in Millions	3 Months Ended
	Jun. 30, 2014 USD ($)
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	$ 156

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Acquisition Integration Charges (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Acquisition integration charges [Line Items]
Acquisition integration charges	$ 12	$ 37	$ 23	$ 103
Acquisition integration after tax charges	$ 8	$ 23	$ 15	$ 67
Acquisition integration charges per ordinary share	$ 0.02	$ 0.05	$ 0.03	$ 0.14
Electrical Products [Member]
Acquisition integration charges [Line Items]
Acquisition integration charges	$ 6	$ 12	$ 12	$ 41
Electrical Systems and Services [Member]
Acquisition integration charges [Line Items]
Acquisition integration charges	4	13	7	39
Hydraulics [Member]
Acquisition integration charges [Line Items]
Acquisition integration charges	1	5	2	9
Total business segments [Member]
Acquisition integration charges [Line Items]
Acquisition integration charges	11	30	21	89
Corporate [Member]
Acquisition integration charges [Line Items]
Acquisition integration charges	$ 1	$ 7	$ 2	$ 14

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Acquisition Integration Charges

6 Months Ended

Jun. 30, 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 June 30				Six months ended June 30
	2015		2014		2015		2014
Business segment
Electrical Products	$	6	$	12	$	12	$	41
Electrical Systems and Services	4		13		7		39
Hydraulics	1		5		2		9
Total business segments	11		30		21		89
Corporate	1		7		2		14
Total acquisition integration charges before income taxes	$	12	$	37	$	23	$	103
Total after income taxes	$	8	$	23	$	15	$	67
Per ordinary share - diluted	$	0.02	$	0.05	$	0.03	$	0.14

Business segment acquisition integration charges for the three and six months ended June 30, 2015 and 2014 were related primarily to the integration of Cooper Industries plc (Cooper) to gain efficiencies in selling, marketing, traditional back-office functions, 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 acquisition 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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Restructuring Charges Restructuring Charges (Details) - Employee Severance [Member] - USD ($) $ in Millions	Dec. 31, 2016	Dec. 31, 2015	Jun. 30, 2015
Restructuring Cost and Reserve [Line Items]
Expected cost			$ 145
Scenario, Forecast [Member]
Restructuring Cost and Reserve [Line Items]
Expected cost	$ 25	$ 120

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Calculation of Net Income per Ordinary Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Calculation of net income per ordinary share attributable to ordinary shareholders
Net income attributable to Eaton ordinary shareholders	$ 535	$ 171	$ 1,001	$ 610
Weighted-average number of ordinary shares outstanding - diluted (shares)	469.2	478.5	469.6	478.7
Less dilutive effect of equity-based compensation	1.6	2.6	1.9	2.8
Weighted-average number of ordinary shares outstanding - basic (shares)	467.6	475.9	467.7	475.9
Stock options excluded from calculation of diluted net income per ordinary share	1.3	0.5	1.1	0.3
Net income per ordinary share
Diluted (usd per share)	$ 1.14	$ 0.36	$ 2.13	$ 1.27
Basic (usd per share)	$ 1.14	$ 0.36	$ 2.14	$ 1.28

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Consolidated Statements of Income - USD ($) shares in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Income Statement [Abstract]
Net sales	$ 5,372	$ 5,767	$ 10,595	$ 11,259
Cost of products sold	3,675	4,025	7,268	7,883
Selling and administrative expense	901	984	1,816	1,946
Litigation settlements	0	(644)	0	(644)
Research and development expense	158	168	316	330
Interest expense - net	59	55	116	117
Other income - net	(19)	(166)	(24)	(171)
Income before income taxes	598	57	1,103	510
Income tax expense (benefit)	63	(115)	101	(103)
Net income	535	172	1,002	613
Less net income for noncontrolling interests	0	(1)	(1)	(3)
Net income attributable to Eaton ordinary shareholders	$ 535	$ 171	$ 1,001	$ 610
Net income per ordinary share
Diluted (usd per share)	$ 1.14	$ 0.36	$ 2.13	$ 1.27
Basic (usd per share)	$ 1.14	$ 0.36	$ 2.14	$ 1.28
Weighted-average number of ordinary shares outstanding
Diluted (shares)	469.2	478.5	469.6	478.7
Basic (shares)	467.6	475.9	467.7	475.9
Cash dividends declared per ordinary share (usd per share)	$ 0.55	$ 0.49	$ 1.10	$ 0.98

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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	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Derivative Instruments, Gain (Loss) [Line Items]
Amounts recognized in net income	$ 0	$ 0	$ 0	$ 0
Fixed-to-floating interest rate swaps [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Amounts recognized in net income	(51)	44	(3)	73
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	$ 51	$ (44)	$ 3	$ (73)

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Basis of Presentation

6 Months Ended

Jun. 30, 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 and 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 July 2015, the FASB made a decision to defer the effective date of the new standard for one year and permit early adoption as of the original effective date. 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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Legal Contingencies (Details) BRL in Millions, $ in Millions					3 Months Ended		6 Months Ended
	Jul. 16, 2014 USD ($)	Jul. 08, 2014 USD ($)	Jun. 23, 2014 USD ($)	Jun. 18, 2014 USD ($)	Dec. 31, 2010 BRL	Dec. 31, 2010 USD ($)	Jun. 30, 2015 BRL	Jun. 30, 2015 USD ($)	Jun. 30, 2015 USD ($)
Raysul [Member]
Loss Contingencies [Line Items]
Loss Contingency Accrual							BRL 88		$ 28.0
Loss Contingency Accrual, Provision					BRL 60	$ 19.0	BRL 28	$ 9.0
Meritor [Member]
Loss Contingencies [Line Items]
Loss Contingency, Loss in Period			$ 500.0
Litigation Settlement, Amount	$ 500.0
Triumph [Member]
Loss Contingencies [Line Items]
Loss Contingency, Loss in Period				$ 147.5
Litigation Settlement, Amount		$ 147.5

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Goodwill (Tables)

6 Months Ended

Jun. 30, 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
Reclassifications	(106		)	106			—			—		—			—
Translation	(106		)	(66		)	(42		)	1		(4		)	(217		)
June 30, 2015	$	6,728		$	4,376		$	1,285		$	963	$	346		$	13,698

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Income Taxes (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Income Tax Disclosure [Abstract]
Effective tax rate	11.00%	203.00%	9.00%	20.00%
Total pretax special items impacting adjusted effective tax rate				$ 494
Adjusted effective income tax rate, percent		8.00%	6.00%

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Equity (Tables)

6 Months Ended

Jun. 30, 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	1,001			1			1,002
Other comprehensive loss	(404		)	—			(404		)
Cash dividends paid and accrued	(514		)	(4		)	(518		)
Issuance of shares under equity-based compensation plans - net	54			—			54
Repurchase of shares	(170		)	—			(170		)
Balance at June 30, 2015	$	15,753		$	50		$	15,803

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	(511		)	30			7			(474		)
Amounts reclassified from Accumulated other    comprehensive loss	—			74			(4		)	70
Net current-period Other comprehensive    (loss) income	(511		)	104			3			(404		)
Balance at June 30, 2015	$	(1,925	)	$	(1,381	)	$	3		$	(3,303	)

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

The reclassifications out of Accumulated other comprehensive loss follow:

	Six months ended June 30, 2015				Consolidated statements of income classification
Amortization of pensions and other postretirement benefits items
Actuarial loss and prior service cost	$	(114	)	1
Tax benefit	40
Total, net of tax	(74		)
Gains and (losses) on cash flow hedges
Currency exchange contracts	6				Cost of products sold
Tax expense	(2		)
Total, net of tax	4
Total reclassifications for the period	$	(70	)

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 June 30				Six months ended June 30
(Shares in millions)	2015		2014		2015		2014
Net income attributable to Eaton ordinary shareholders	$	535	$	171	$	1,001	$	610
Weighted-average number of ordinary shares outstanding - diluted	469.2		478.5		469.6		478.7
Less dilutive effect of equity-based compensation	1.6		2.6		1.9		2.8
Weighted-average number of ordinary shares outstanding - basic	467.6		475.9		467.7		475.9
Net income per ordinary share
Diluted	$	1.14	$	0.36	$	2.13	$	1.27
Basic	1.14		0.36		2.14		1.28

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Acquisition and Sale of Businesses

6 Months Ended

Jun. 30, 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 $156 as of June 30, 2014.

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Consolidated Statements of Comprehensive Income - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Statement of Comprehensive Income [Abstract]
Net income	$ 535	$ 172	$ 1,002	$ 613
Less net income for noncontrolling interests	0	(1)	(1)	(3)
Net income attributable to Eaton ordinary shareholders	535	171	1,001	610
Other comprehensive income (loss), net of tax
Currency translation and related hedging instruments	209	58	(511)	11
Pensions and other postretirement benefits	18	23	104	73
Cash flow hedges	(3)	(2)	(3)	(2)
Other comprehensive income (loss) attributable to Eaton ordinary shareholders	230	83	(404)	86
Total comprehensive income (loss) attributable to Eaton ordinary shareholders	$ 765	$ 254	$ 597	$ 696

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Inventory

6 Months Ended

Jun. 30, 2015

Inventory Disclosure [Abstract]

INVENTORY

INVENTORY

The components of inventory follow:

	June 30, 2015			December 31, 2014
Raw materials	$	1,130		$	924
Work-in-process	279			422
Finished goods	1,152			1,201
Inventory at FIFO	2,561			2,547
Excess of FIFO over LIFO cost	(122		)	(119		)
Total inventory	$	2,439		$	2,428

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Document and Entity Information Document - Jun. 30, 2015 - shares shares in Millions	Total
Document and Entity Information [Abstract]
Entity Registrant Name	Eaton Corp plc
Trading Symbol	ETN
Entity Central Index Key	0001551182
Document Type	10-Q
Document Period End Date	Jun. 30, 2015
Amendment Flag	false
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	Q2
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	467.5

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Business Segment Information

6 Months Ended

Jun. 30, 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 June 30						Six months ended June 30
	2015			2014			2015			2014
Net sales
Electrical Products	$	1,784		$	1,832		$	3,475		$	3,558
Electrical Systems and Services	1,502			1,628			2,950			3,152
Hydraulics	643			787			1,308			1,569
Aerospace	454			486			918			950
Vehicle	989			1,034			1,944			2,030
Total net sales	$	5,372		$	5,767		$	10,595		$	11,259
Segment operating profit
Electrical Products	$	276		$	300		$	536		$	550
Electrical Systems and Services	223			194			409			363
Hydraulics	74			94			140			202
Aerospace	77			69			154			131
Vehicle	190			155			354			306
Total segment operating profit	840			812			1,593			1,552
Corporate
Litigation settlements	—			(644		)	—			(644		)
Amortization of intangible assets	(102		)	(109		)	(204		)	(219		)
Interest expense - net	(59		)	(55		)	(116		)	(117		)
Pension and other postretirement benefits expense	(33		)	(32		)	(61		)	(83		)
Other corporate (expense) benefit - net	(48		)	85			(109		)	21
Income before income taxes	598			57			1,103			510
Income tax expense (benefit)	63			(115		)	101			(103		)
Net income	535			172			1,002			613
Less net income for noncontrolling interests	—			(1		)	(1		)	(3		)
Net income attributable to Eaton ordinary shareholders	$	535		$	171		$	1,001		$	610

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Condensed Consolidated Balance Sheets - USD ($) $ in Millions	Jun. 30, 2015	Dec. 31, 2014	Jun. 30, 2014	Dec. 31, 2013
Current assets
Cash	$ 303	$ 781	$ 631	$ 915
Short-term investments	127	245
Accounts receivable - net	3,840	3,667
Inventory	2,439	2,428
Deferred income taxes	553	593
Prepaid expenses and other current assets	382	386
Total current assets	7,644	8,100
Property, plant and equipment - net	3,680	3,750
Other noncurrent assets
Goodwill	13,698	13,893
Other intangible assets	6,282	6,556
Deferred income taxes	250	228
Other assets	1,025	1,002
Total assets	32,579	33,529
Current liabilities
Short-term debt	139	2
Current portion of long-term debt	842	1,008
Accounts payable	1,931	1,940
Accrued compensation	327	420
Other current liabilities	1,817	1,985
Total current liabilities	5,056	5,355
Noncurrent liabilities
Long-term debt	7,770	8,024
Pension liabilities	1,552	1,812
Other postretirement benefits liabilities	507	513
Deferred income taxes	876	901
Other noncurrent liabilities	1,015	1,085
Total noncurrent liabilities	11,720	12,335
Shareholders' equity
Eaton shareholders' equity	15,753	15,786
Noncontrolling interests	50	53
Total equity	15,803	15,839
Total liabilities and equity	$ 32,579	$ 33,529

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Legal Contingencies

6 Months Ended

Jun. 30, 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 June 30, 2015, the Company has a total accrual of 88 Brazilian Reais related to this matter ($28 based on current exchange rates), comprised of 60 Brazilian Reais recognized in the fourth quarter of 2010 ($19 based on current exchange rates) with an additional 28 Brazilian Reais recognized through June 30, 2015 ($9 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.

On October 5, 2006, ZF Meritor LLC and Meritor Transmission Corporation (collectively, Meritor) filed an action against Eaton in the United States District Court of Delaware. The action sought damages, which would have been trebled under United States antitrust laws, as well as injunctive relief and costs. The suit alleged that Eaton engaged in anti-competitive conduct against Meritor in the sale of heavy-duty truck transmissions in North America. On June 23, 2014, Eaton announced it signed a settlement agreement with Meritor in the amount of $500 that resolved the lawsuit and removed the uncertainty of a trial and appeal process. On July 16, 2014, Eaton paid Meritor the $500.

Frisby Corporation, now known as Triumph Actuation Systems, LLC, and other claimants (collectively, Triumph) asserted claims alleging, among other things, unfair competition, defamation, malicious prosecution, deprivation of civil rights, and antitrust in the Hinds County Circuit Court of Mississippi in 2004 and in the Federal District Court of North Carolina in 2011. Eaton had asserted claims against Triumph regarding improper use of trade secrets and these claims were dismissed by the Hinds County Circuit Court. On June 18, 2014, Eaton announced it signed a settlement agreement with Triumph in the amount of $147.5 that resolved all claims and lawsuits and removed the uncertainty of a trial and appeal process. On July 8, 2014, Eaton paid Triumph the $147.5.

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Retirement Benefits Plans

6 Months Ended

Jun. 30, 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 June 30
	2015			2014			2015			2014			2015			2014
Service cost	$	30		$	29		$	19		$	17		$	1		$	5
Interest cost	39			41			18			22			6			10
Expected return on plan assets	(65		)	(62		)	(25		)	(25		)	(1		)	(2		)
Amortization	30			23			10			7			1			2
	34			31			22			21			7			15
Settlements	19			14			—			—			—			—
Total expense	$	53		$	45		$	22		$	21		$	7		$	15

	United States pension benefit expense						Non-United States pension benefit expense						Other postretirement benefits expense
	Six months ended June 30
	2015			2014			2015			2014			2015			2014
Service cost	$	61		$	58		$	37		$	33		$	3		$	9
Interest cost	78			81			36			44			12			19
Expected return on plan assets	(131		)	(123		)	(50		)	(50		)	(2		)	(3		)
Amortization	60			46			20			14			1			4
	68			62			43			41			14			29
Settlements	33			48			—			—			—			—
Total expense	$	101		$	110		$	43		$	41		$	14		$	29

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Retirement Benefits Plans (Tables)

6 Months Ended

Jun. 30, 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 June 30
	2015			2014			2015			2014			2015			2014
Service cost	$	30		$	29		$	19		$	17		$	1		$	5
Interest cost	39			41			18			22			6			10
Expected return on plan assets	(65		)	(62		)	(25		)	(25		)	(1		)	(2		)
Amortization	30			23			10			7			1			2
	34			31			22			21			7			15
Settlements	19			14			—			—			—			—
Total expense	$	53		$	45		$	22		$	21		$	7		$	15

	United States pension benefit expense						Non-United States pension benefit expense						Other postretirement benefits expense
	Six months ended June 30
	2015			2014			2015			2014			2015			2014
Service cost	$	61		$	58		$	37		$	33		$	3		$	9
Interest cost	78			81			36			44			12			19
Expected return on plan assets	(131		)	(123		)	(50		)	(50		)	(2		)	(3		)
Amortization	60			46			20			14			1			4
	68			62			43			41			14			29
Settlements	33			48			—			—			—			—
Total expense	$	101		$	110		$	43		$	41		$	14		$	29

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Condensed Consolidating Financial Information (Notes)

6 Months Ended

Jun. 30, 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 the 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 JUNE 30, 2015
	Eaton Corporation plc			Eaton Corporation			Guarantors			Other subsidiaries			Consolidating adjustments			Total
Net sales	$	—		$	1,806		$	1,705		$	3,248		$	(1,387	)	$	5,372
Cost of products sold	—			1,433			1,273			2,322			(1,353		)	3,675
Selling and administrative expense	2			368			172			359			—			901
Research and development expense	—			66			49			43			—			158
Interest expense (income) - net	—			58			5			(2		)	(2		)	59
Other expense (income) - net	—			11			(7		)	(23		)	—			(19		)
Equity in earnings of    subsidiaries, net of tax	(619		)	(62		)	(805		)	(129		)	1,615			—
Intercompany expense (income) - net	82			(267		)	481			(296		)	—			—
Income before income taxes	535			199			537			974			(1,647		)	598
Income tax expense (benefit)	—			41			(38		)	75			(15		)	63
Net income	535			158			575			899			(1,632		)	535
Less net income for    noncontrolling interests	—			—			—			(1		)	1			—
Net income attributable to    Eaton ordinary shareholders	$	535		$	158		$	575		$	898		$	(1,631	)	$	535
Other comprehensive income	$	230		$	16		$	234		$	282		$	(532	)	$	230
Total comprehensive income   attributable to Eaton   ordinary shareholders	$	765		$	174		$	809		$	1,180		$	(2,163	)	$	765

CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME FOR THE THREE MONTHS ENDED JUNE 30, 2014
	Eaton Corporation plc			Eaton Corporation			Guarantors			Other subsidiaries			Consolidating adjustments			Total
Net sales	$	—		$	1,750		$	1,779		$	3,354		$	(1,116	)	$	5,767
Cost of products sold	—			1,378			1,288			2,473			(1,114		)	4,025
Selling and administrative expense	(2		)	370			193			423			—			984
Litigation settlements	—			644			—			—			—			644
Research and development expense	—			62			52			54			—			168
Interest expense (income) - net	—			55			6			(8		)	2			55
Other income - net	—			(50		)	(95		)	(21		)	—			(166		)
Equity in (earnings) loss of    subsidiaries, net of tax	(231		)	(194		)	(256		)	214			467			—
Intercompany expense (income) - net	62			(47		)	146			(161		)	—			—
Income (loss) before income taxes	171			(468		)	445			380			(471		)	57
Income tax (benefit) expense	—			(255		)	78			63			(1		)	(115		)
Net income (loss)	171			(213		)	367			317			(470		)	172
Less net income for    noncontrolling interests	—			—			—			(1		)	—			(1		)
Net income (loss) attributable to    Eaton ordinary shareholders	$	171		$	(213	)	$	367		$	316		$	(470	)	$	171
Other comprehensive income	$	83		$	37		$	90		$	116		$	(243	)	$	83
Total comprehensive income    (loss) attributable to Eaton    ordinary shareholders	$	254		$	(176	)	$	457		$	432		$	(713	)	$	254

CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME FOR THE SIX MONTHS ENDED JUNE 30, 2015
	Eaton Corporation plc			Eaton Corporation			Guarantors			Other subsidiaries			Consolidating adjustments			Total
Net sales	$	—		$	3,508		$	3,401		$	6,364		$	(2,678	)	$	10,595
Cost of products sold	—			2,743			2,568			4,599			(2,642		)	7,268
Selling and administrative expense	4			745			348			719			—			1,816
Research and development expense	—			137			94			85			—			316
Interest expense (income) - net	—			112			11			(7		)	—			116
Other expense (income) - net	—			6			(8		)	(22		)	—			(24		)
Equity in earnings of    subsidiaries, net of tax	(1,164		)	(273		)	(1,518		)	(258		)	3,213			—
Intercompany expense (income) - net	159			(308		)	752			(603		)	—			—
Income before income taxes	1,001			346			1,154			1,851			(3,249		)	1,103
Income tax expense (benefit)	—			19			(17		)	116			(17		)	101
Net income	1,001			327			1,171			1,735			(3,232		)	1,002
Less net income for    noncontrolling interests	—			—			—			(2		)	1			(1		)
Net income attributable to    Eaton ordinary shareholders	$	1,001		$	327		$	1,171		$	1,733		$	(3,231	)	$	1,001
Other comprehensive (loss) income	$	(404	)	$	62		$	(386	)	$	(464	)	$	788		$	(404	)
Total comprehensive income attributable to Eaton   ordinary shareholders	$	597		$	389		$	785		$	1,269		$	(2,443	)	$	597

CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME FOR THE SIX MONTHS ENDED JUNE 30, 2014
	Eaton Corporation plc			Eaton Corporation			Guarantors			Other subsidiaries			Consolidating adjustments			Total
Net sales	$	—		$	3,417		$	3,420		$	6,645		$	(2,223	)	$	11,259
Cost of products sold	—			2,720			2,506			4,865			(2,208		)	7,883
Selling and administrative expense	—			731			393			822			—			1,946
Litigation settlements	—			644			—			—			—			644
Research and development expense	—			122			102			106			—			330
Interest expense (income) - net	—			114			13			(14		)	4			117
Other income- net	—			(45		)	(92		)	(34		)	—			(171		)
Equity in (earnings) loss of    subsidiaries, net of tax	(700		)	(187		)	(747		)	259			1,375			—
Intercompany expense (income) - net	90			(117		)	278			(251		)	—			—
Income (loss) before income taxes	610			(565		)	967			892			(1,394		)	510
Income tax (benefit) expense	—			(269		)	71			101			(6		)	(103		)
Net income (loss)	610			(296		)	896			791			(1,388		)	613
Less net income for    noncontrolling interests	—			—			—			(3		)	—			(3		)
Net income (loss) attributable to    Eaton ordinary shareholders	$	610		$	(296	)	$	896		$	788		$	(1,388	)	$	610
Other comprehensive income	$	86		$	67		$	115		$	70		$	(252	)	$	86
Total comprehensive income (loss) attributable to Eaton ordinary shareholders	$	696		$	(229	)	$	1,011		$	858		$	(1,640	)	$	696

CONDENSED CONSOLIDATING BALANCE SHEETS JUNE 30, 2015
	Eaton Corporation plc		Eaton Corporation		Guarantors		Other subsidiaries		Consolidating adjustments			Total
Assets
Current assets
Cash	$	—	$	14	$	8	$	281	$	—		$	303
Short-term investments	—		—		1		126		—			127
Accounts receivable - net	—		549		1,075		2,216		—			3,840
Intercompany accounts    receivable	2		816		3,751		3,063		(7,632		)	—
Inventory	—		356		691		1,479		(87		)	2,439
Deferred income taxes	—		348		128		77		—			553
Prepaid expenses and    other current assets	—		108		43		212		19			382
Total current assets	2		2,191		5,697		7,454		(7,700		)	7,644
Property, plant and    equipment - net	—		950		752		1,978		—			3,680
Other noncurrent assets
Goodwill	—		1,355		6,256		6,087		—			13,698
Other intangible assets	—		189		3,717		2,376		—			6,282
Deferred income taxes	—		873		5		162		(790		)	250
Investment in subsidiaries	28,861		12,461		58,835		9,831		(109,988		)	—
Intercompany loans receivable	—		7,656		1,430		42,492		(51,578		)	—
Other assets	—		559		132		334		—			1,025
Total assets	$	28,863	$	26,234	$	76,824	$	70,714	$	(170,056	)	$	32,579
Liabilities and    shareholders’ equity
Current liabilities
Short-term debt	$	—	$	125	$	—	$	14	$	—		$	139
Current portion of    long-term debt	—		601		241		—		—			842
Accounts payable	—		468		325		1,138		—			1,931
Intercompany accounts payable	84		4,023		2,429		1,096		(7,632		)	—
Accrued compensation	—		58		44		225		—			327
Other current liabilities	—		605		312		911		(11		)	1,817
Total current liabilities	84		5,880		3,351		3,384		(7,643		)	5,056
Noncurrent liabilities
Long-term debt	—		7,069		683		18		—			7,770
Pension liabilities	—		587		140		825		—			1,552
Other postretirement    benefits liabilities	—		280		136		91		—			507
Deferred income taxes	—		14		1,105		547		(790		)	876
Intercompany loans payable	13,026		1,801		35,774		977		(51,578		)	—
Other noncurrent liabilities	—		424		172		419		—			1,015
Total noncurrent liabilities	13,026		10,175		38,010		2,877		(52,368		)	11,720
Shareholders’ equity
Eaton shareholders' equity	15,753		10,179		35,463		64,410		(110,052		)	15,753
Noncontrolling interests	—		—		—		43		7			50
Total equity	15,753		10,179		35,463		64,453		(110,045		)	15,803
Total liabilities and equity	$	28,863	$	26,234	$	76,824	$	70,714	$	(170,056	)	$	32,579

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 SIX MONTHS ENDED JUNE 30, 2015
	Eaton Corporation plc			Eaton Corporation			Guarantors			Other subsidiaries			Consolidating adjustments			Total
Net cash (used in) provided by    operating activities	$	(84	)	$	(272	)	$	95		$	917		$	—		$	656
Investing activities
Cash paid for acquisitions of businesses, net of cash acquired	—			—			—			(38		)	—			(38		)
Capital expenditures for property,    plant and equipment	—			(47		)	(63		)	(136		)	—			(246		)
Sales of short-term investments - net	—			—			—			109			—			109
Investments in affiliates	(1,482		)	—			(1,176		)	(1,482		)	4,140			—
Loans to affiliates	—			(307		)	(39		)	(6,027		)	6,373			—
Repayments of loans from affiliates	—			306			11			4,720			(5,037		)	—
Proceeds from sale of business	—			—			—			1			—			1
Other - net	—			(31		)	28			(30		)	—			(33		)
Net cash used in investing activities	(1,482		)	(79		)	(1,239		)	(2,883		)	5,476			(207		)
Financing activities
Proceeds from borrowings	—			125			—			12			—			137
Payments on borrowings	—			(101		)	(301		)	(2		)	—			(404		)
Proceeds from borrowings from    affiliates	2,242			3,775			314			42			(6,373		)	—
Payments on borrowings from    affiliates	(39		)	(3,824		)	(1,160		)	(14		)	5,037			—
Capital contributions from affiliates	—			1,176			1,482			1,482			(4,140		)	—
Other intercompany financing    activities	—			(959		)	804			155			—			—
Cash dividends paid	(514		)	—			—			—			—			(514		)
Exercise of employee stock options	46			—			—			—			—			46
Repurchase of shares	(170		)	—			—			—			—			(170		)
Other - net	—			—			—			(7		)	—			(7		)
Net cash provided by (used in)    financing activities	1,565			192			1,139			1,668			(5,476		)	(912		)
Effect of currency on cash	—			—			—			(15		)	—			(15		)
Total decrease in cash	(1		)	(159		)	(5		)	(313		)	—			(478		)
Cash at the beginning of the period	1			173			13			594			—			781
Cash at the end of the period	$	—		$	14		$	8		$	281		$	—		$	303

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS FOR THE SIX MONTHS ENDED JUNE 30, 2014
	Eaton Corporation plc			Eaton Corporation			Guarantors			Other subsidiaries			Consolidating adjustments			Total
Net cash provided by (used in)    operating activities	$	8		$	(229	)	$	7		$	859		$	—		$	645
Investing activities
Capital expenditures for property,    plant and equipment	—			(51		)	(61		)	(124		)	—			(236		)
(Purchases) sales of short-term investments - net	—			—			(155		)	317			—			162
Loans to affiliates	—			(151		)	—			(3,191		)	3,342			—
Repayments of loans from affiliates	—			176			187			2,454			(2,817		)	—
Proceeds from sale of businesses	—			93			175			5			—			273
Other - net	—			(26		)	5			(30		)	—			(51		)
Net cash provided by (used in)    investing activities	—			41			151			(569		)	525			148
Financing activities
Payments on borrowings	—			(551		)	(1		)	(24		)	—			(576		)
Proceeds from borrowings from    affiliates	327			2,754			254			7			(3,342		)	—
Payments on borrowings from    affiliates	(15		)	(2,125		)	(320		)	(357		)	2,817			—
Other intercompany financing activities	219			84			(81		)	(222		)	—			—
Cash dividends paid	(467		)	—			—			—			—			(467		)
Exercise of employee stock options	44			—			—			—			—			44
Repurchase of shares	(99		)	—			—			—			—			(99		)
Excess tax benefit from    equity-based compensation	—			20			—			—			—			20
Net cash provided by (used in)    financing activities	9			182			(148		)	(596		)	(525		)	(1,078		)
Effect of currency on cash	—			—			—			1			—			1
Total increase (decrease) in cash	17			(6		)	10			(305		)	—			(284		)
Cash at the beginning of the period	3			51			10			851			—			915
Cash at the end of the period	$	20		$	45		$	20		$	546		$	—		$	631

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Fair Value Measurements

6 Months Ended

Jun. 30, 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
June 30, 2015
Cash	$	303		$	303	$	—		$	—
Short-term investments	127			127		—			—
Net derivative contracts	73			—		73			—
Long-term debt converted to floating interest rates by    interest rate swaps - net	(71		)	—		(71		)	—
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 measured using unobservable inputs.

Other Fair Value Measurements

Long-term debt and the current portion of long-term debt had a carrying value of $8,612 and fair value of $8,879 at June 30, 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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Income Taxes

6 Months Ended

Jun. 30, 2015

Income Tax Disclosure [Abstract]

INCOME TAXES

INCOME TAXES

The effective income tax rate for the second quarter and first six months of 2015 was expense of 11% and 9%, respectively, compared to a benefit of 203% and 20% for the second quarter and first six months of 2014, respectively. Excluding the litigation settlements and related legal costs, as well as the gain on the sale of Eaton's Aerospace businesses, which represents a total pre-tax expense of $494 and occurred in the second quarter of 2014, the effective income tax rate was expense of 8% and 6% for the second quarter and first six months of 2014, respectively. See Note 7 and Note 2 for additional information about legal contingencies and the sale of businesses, respectively.

The increase in the effective tax rate in the second quarter and first six months of 2015 is primarily due to more income earned in higher tax jurisdictions, including the United States.

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Equity

6 Months Ended

Jun. 30, 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. No ordinary shares were repurchased during the second quarter of 2015. During the first six months and second quarter of 2014, 1.4 million ordinary shares were repurchased under the 2013 Program in the open market at a total cost of $99.

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	1,001			1			1,002
Other comprehensive loss	(404		)	—			(404		)
Cash dividends paid and accrued	(514		)	(4		)	(518		)
Issuance of shares under equity-based compensation plans - net	54			—			54
Repurchase of shares	(170		)	—			(170		)
Balance at June 30, 2015	$	15,753		$	50		$	15,803

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	(511		)	30			7			(474		)
Amounts reclassified from Accumulated other    comprehensive loss	—			74			(4		)	70
Net current-period Other comprehensive    (loss) income	(511		)	104			3			(404		)
Balance at June 30, 2015	$	(1,925	)	$	(1,381	)	$	3		$	(3,303	)

The reclassifications out of Accumulated other comprehensive loss follow:

	Six months ended June 30, 2015				Consolidated statements of income classification
Amortization of pensions and other postretirement benefits items
Actuarial loss and prior service cost	$	(114	)	1
Tax benefit	40
Total, net of tax	(74		)
Gains and (losses) on cash flow hedges
Currency exchange contracts	6				Cost of products sold
Tax expense	(2		)
Total, net of tax	4
Total reclassifications for the period	$	(70	)

¹ These components of Accumulated other comprehensive loss are included in the computation of net periodic benefit cost. See Note 6 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 June 30				Six months ended June 30
(Shares in millions)	2015		2014		2015		2014
Net income attributable to Eaton ordinary shareholders	$	535	$	171	$	1,001	$	610
Weighted-average number of ordinary shares outstanding - diluted	469.2		478.5		469.6		478.7
Less dilutive effect of equity-based compensation	1.6		2.6		1.9		2.8
Weighted-average number of ordinary shares outstanding - basic	467.6		475.9		467.7		475.9
Net income per ordinary share
Diluted	$	1.14	$	0.36	$	2.13	$	1.27
Basic	1.14		0.36		2.14		1.28

For the second quarter and first six months of 2015, 1.3 million and 1.1 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. For the second quarter and first six months of 2014, 0.5 million and 0.3 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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Derivative Financial Instruments and Hedging Activities

6 Months Ended

Jun. 30, 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 $82 at June 30, 2015 and $84 at December 31, 2014.

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
June 30, 2015
Derivatives designated as hedges
Fixed-to-floating interest rate swaps	$	3,440	$	—	$	81	$	—	$	10	Fair value	2 to 19 years
Currency exchange contracts	533		10		1		4		2		Cash flow	1 to 36 months
Commodity contracts	1		—		—		—		—		Cash flow	1 to 12 months
Total			$	10	$	82	$	4	$	12
Derivatives not designated as  hedges
Currency exchange contracts	$	3,975	$	25			$	28				1 to 12 months
Total			$	25			$	28
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:

	Gain (loss) recognized in other comprehensive (loss) income				Location of gain reclassified from Accumulated other comprehensive loss	Gain (loss) reclassified from Accumulated other comprehensive loss
	Three months ended June 30					Three months ended June 30
	2015		2014			2015		2014
Derivatives designated as    cash flow hedges
Floating-to-fixed interest rate swaps	$	—	$	—	Interest expense - net	$	—	$	(1	)
Currency exchange contracts	8		3		Cost of products sold	4		2
Total	$	8	$	3		$	4	$	1

	Gain (loss) recognized in other comprehensive (loss) income				Location of gain reclassified from Accumulated other comprehensive loss	Gain (loss) reclassified from Accumulated other comprehensive loss
	Six months ended June 30					Six months ended June 30
	2015		2014			2015		2014
Derivatives designated as cash    flow hedges
Floating-to-fixed interest rate swaps	$	—	$	—	Interest expense - net	$	—	$	(1	)
Currency exchange contracts	10		5		Cost of products sold	6		4
Total	$	10	$	5		$	6	$	3

Amounts recognized in net income follow:

	Three months ended June 30						Six months ended June 30
	2015			2014			2015			2014
Derivatives designated as fair value hedges
Fixed-to-floating interest rate swaps	$	(51	)	$	44		$	(3	)	$	73
Related long-term debt converted to floating interest    rates by interest rate swaps	51			(44		)	3			(73		)
	$	—		$	—		$	—		$	—

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

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Retirement Benefits Plans (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
United States pension benefit expense [Member]
Retirement benefits plans expense
Service cost	$ 30	$ 29	$ 61	$ 58
Interest cost	39	41	78	81
Expected return on plan assets	(65)	(62)	(131)	(123)
Amortization	30	23	60	46
Total	34	31	68	62
Settlement loss	19	14	33	48
Total expense	53	45	101	110
Non-United States pension benefit expense [Member]
Retirement benefits plans expense
Service cost	19	17	37	33
Interest cost	18	22	36	44
Expected return on plan assets	(25)	(25)	(50)	(50)
Amortization	10	7	20	14
Total	22	21	43	41
Settlement loss	0	0	0	0
Total expense	22	21	43	41
Other postretirement benefits expense [Member]
Retirement benefits plans expense
Service cost	1	5	3	9
Interest cost	6	10	12	19
Expected return on plan assets	(1)	(2)	(2)	(3)
Amortization	1	2	1	4
Total	7	15	14	29
Settlement loss	0	0	0	0
Total expense	$ 7	$ 15	$ 14	$ 29

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Condensed Consolidating Financial Information Condensed Consolidating Statements of Cash Flows (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Condensed Consolidating Statements of Cash Flows, Captions [Line Items]
Net cash (used in) provided by operating activities	$ 656	$ 645
Cash paid for acquisitions of businesses, net of cash acquired	(38)	0
Capital expenditures for property, plant and equipment	(246)	(236)
Sales of short-term investments - net	109	162
Payments to Acquire Investments	0
Loans to affiliates	0	0
Repayments of loans from affiliates	0	0
Proceeds from sale of businesses	1	273
Other - net	(33)	(51)
Net cash (used in) provided by investing activities	(207)	148
Proceeds from borrowings	137	0
Payments on borrowings	(404)	(576)
Proceeds from borrowings from affiliates	0
Payments on borrowings from affiliates	0	0
Proceeds from borrowings from affiliates	0	0
Other intercompany financing activities	0	0
Cash dividends paid	(514)	(467)
Exercise of employee stock options	46	44
Repurchase of shares	(170)	(99)
Excess tax benefit from equity-based compensation	0	20
Other - net	(7)	0
Net cash used in financing activities	(912)	(1,078)
Effect of currency on cash	(15)	1
Total decrease in cash	(478)	(284)
Cash at the beginning of the period	781	915
Cash at the end of the period	303	631
Eaton Corporation plc [Member]
Condensed Consolidating Statements of Cash Flows, Captions [Line Items]
Net cash (used in) provided by operating activities	(84)	8
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
Payments to Acquire Investments	(1,482)
Loans to affiliates	0	0
Repayments of loans from affiliates	0	0
Proceeds from sale of businesses	0	0
Other - net	0	0
Net cash (used in) provided by investing activities	(1,482)	0
Proceeds from borrowings	0
Payments on borrowings	0	0
Proceeds from borrowings from affiliates	2,242
Payments on borrowings from affiliates	(39)	(15)
Proceeds from borrowings from affiliates	0	327
Other intercompany financing activities	0	219
Cash dividends paid	(514)	(467)
Exercise of employee stock options	46	44
Repurchase of shares	(170)	(99)
Excess tax benefit from equity-based compensation		0
Other - net	0
Net cash used in financing activities	1,565	9
Effect of currency on cash	0	0
Total decrease in cash	(1)	17
Cash at the beginning of the period	1	3
Cash at the end of the period	0	20
Eaton Corporation [Member]
Condensed Consolidating Statements of Cash Flows, Captions [Line Items]
Net cash (used in) provided by operating activities	(272)	(229)
Cash paid for acquisitions of businesses, net of cash acquired	0
Capital expenditures for property, plant and equipment	(47)	(51)
Sales of short-term investments - net	0	0
Payments to Acquire Investments	0
Loans to affiliates	(307)	(151)
Repayments of loans from affiliates	306	176
Proceeds from sale of businesses	0	93
Other - net	(31)	(26)
Net cash (used in) provided by investing activities	(79)	41
Proceeds from borrowings	125
Payments on borrowings	(101)	(551)
Proceeds from borrowings from affiliates	3,775
Payments on borrowings from affiliates	(3,824)	(2,125)
Proceeds from borrowings from affiliates	1,176	2,754
Other intercompany financing activities	(959)	84
Cash dividends paid	0	0
Exercise of employee stock options	0	0
Repurchase of shares	0	0
Excess tax benefit from equity-based compensation		20
Other - net	0
Net cash used in financing activities	192	182
Effect of currency on cash	0	0
Total decrease in cash	(159)	(6)
Cash at the beginning of the period	173	51
Cash at the end of the period	14	45
Guarantors [Member]
Condensed Consolidating Statements of Cash Flows, Captions [Line Items]
Net cash (used in) provided by operating activities	95	7
Cash paid for acquisitions of businesses, net of cash acquired	0
Capital expenditures for property, plant and equipment	(63)	(61)
Sales of short-term investments - net	0	(155)
Payments to Acquire Investments	(1,176)
Loans to affiliates	(39)	0
Repayments of loans from affiliates	11	187
Proceeds from sale of businesses	0	175
Other - net	28	5
Net cash (used in) provided by investing activities	(1,239)	151
Proceeds from borrowings	0
Payments on borrowings	(301)	(1)
Proceeds from borrowings from affiliates	314
Payments on borrowings from affiliates	(1,160)	(320)
Proceeds from borrowings from affiliates	1,482	254
Other intercompany financing activities	804	(81)
Cash dividends paid	0	0
Exercise of employee stock options	0	0
Repurchase of shares	0	0
Excess tax benefit from equity-based compensation		0
Other - net	0
Net cash used in financing activities	1,139	(148)
Effect of currency on cash	0	0
Total decrease in cash	(5)	10
Cash at the beginning of the period	13	10
Cash at the end of the period	8	20
Other subsidiaries [Member]
Condensed Consolidating Statements of Cash Flows, Captions [Line Items]
Net cash (used in) provided by operating activities	917	859
Cash paid for acquisitions of businesses, net of cash acquired	(38)
Capital expenditures for property, plant and equipment	(136)	(124)
Sales of short-term investments - net	109	317
Payments to Acquire Investments	(1,482)
Loans to affiliates	(6,027)	(3,191)
Repayments of loans from affiliates	4,720	2,454
Proceeds from sale of businesses	1	5
Other - net	(30)	(30)
Net cash (used in) provided by investing activities	(2,883)	(569)
Proceeds from borrowings	12
Payments on borrowings	(2)	(24)
Proceeds from borrowings from affiliates	42
Payments on borrowings from affiliates	(14)	(357)
Proceeds from borrowings from affiliates	1,482	7
Other intercompany financing activities	155	(222)
Cash dividends paid	0	0
Exercise of employee stock options	0	0
Repurchase of shares	0	0
Excess tax benefit from equity-based compensation		0
Other - net	(7)
Net cash used in financing activities	1,668	(596)
Effect of currency on cash	(15)	1
Total decrease in cash	(313)	(305)
Cash at the beginning of the period	594	851
Cash at the end of the period	281	546
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
Payments to Acquire Investments	4,140
Loans to affiliates	6,373	3,342
Repayments of loans from affiliates	(5,037)	(2,817)
Proceeds from sale of businesses	0	0
Other - net	0	0
Net cash (used in) provided by investing activities	5,476	525
Proceeds from borrowings	0
Payments on borrowings	0	0
Proceeds from borrowings from affiliates	(6,373)
Payments on borrowings from affiliates	5,037	2,817
Proceeds from borrowings from affiliates	(4,140)	(3,342)
Other intercompany financing activities	0	0
Cash dividends paid	0	0
Exercise of employee stock options	0	0
Repurchase of shares	0	0
Excess tax benefit from equity-based compensation		0
Other - net	0
Net cash used in financing activities	(5,476)	(525)
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

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Acquisition Integration Charges (Tables)

6 Months Ended

Jun. 30, 2015

Acquisitions Integration Charges [Abstract]

Acquisition integration charges

A summary of these charges follows:

	Three months ended June 30				Six months ended June 30
	2015		2014		2015		2014
Business segment
Electrical Products	$	6	$	12	$	12	$	41
Electrical Systems and Services	4		13		7		39
Hydraulics	1		5		2		9
Total business segments	11		30		21		89
Corporate	1		7		2		14
Total acquisition integration charges before income taxes	$	12	$	37	$	23	$	103
Total after income taxes	$	8	$	23	$	15	$	67
Per ordinary share - diluted	$	0.02	$	0.05	$	0.03	$	0.14

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Derivative Financial Instruments and Hedging Activities (Tables)

6 Months Ended

Jun. 30, 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
June 30, 2015
Derivatives designated as hedges
Fixed-to-floating interest rate swaps	$	3,440	$	—	$	81	$	—	$	10	Fair value	2 to 19 years
Currency exchange contracts	533		10		1		4		2		Cash flow	1 to 36 months
Commodity contracts	1		—		—		—		—		Cash flow	1 to 12 months
Total			$	10	$	82	$	4	$	12
Derivatives not designated as  hedges
Currency exchange contracts	$	3,975	$	25			$	28				1 to 12 months
Total			$	25			$	28
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

Amounts recognized in Accumulated other comprehensive loss follow:

	Gain (loss) recognized in other comprehensive (loss) income				Location of gain reclassified from Accumulated other comprehensive loss	Gain (loss) reclassified from Accumulated other comprehensive loss
	Three months ended June 30					Three months ended June 30
	2015		2014			2015		2014
Derivatives designated as    cash flow hedges
Floating-to-fixed interest rate swaps	$	—	$	—	Interest expense - net	$	—	$	(1	)
Currency exchange contracts	8		3		Cost of products sold	4		2
Total	$	8	$	3		$	4	$	1

	Gain (loss) recognized in other comprehensive (loss) income				Location of gain reclassified from Accumulated other comprehensive loss	Gain (loss) reclassified from Accumulated other comprehensive loss
	Six months ended June 30					Six months ended June 30
	2015		2014			2015		2014
Derivatives designated as cash    flow hedges
Floating-to-fixed interest rate swaps	$	—	$	—	Interest expense - net	$	—	$	(1	)
Currency exchange contracts	10		5		Cost of products sold	6		4
Total	$	10	$	5		$	6	$	3

Amounts recognized in net income

Amounts recognized in net income follow:

	Three months ended June 30						Six months ended June 30
	2015			2014			2015			2014
Derivatives designated as fair value hedges
Fixed-to-floating interest rate swaps	$	(51	)	$	44		$	(3	)	$	73
Related long-term debt converted to floating interest    rates by interest rate swaps	51			(44		)	3			(73		)
	$	—		$	—		$	—		$	—

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Condensed Consolidating Financial Information Consolidating Statements of Comprehensive Income (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Consolidating Statements of Comprehensive Income, Captions [Line Items]
Net sales	$ 5,372	$ 5,767	$ 10,595	$ 11,259
Cost of products sold	3,675	4,025	7,268	7,883
Selling and administrative expense	901	984	1,816	1,946
Litigation settlements	0	644	0	644
Research and development expense	158	168	316	330
Interest expense (income) - net	59	55	116	117
Other (income) expense - net	(19)	(166)	(24)	(171)
Equity in earnings of subsidiaries, net of tax	0	0	0	0
Intercompany expense (income) - net	0	0	0	0
Income before income taxes	598	57	1,103	510
Income tax (benefit) expense	63	(115)	101	(103)
Net income	535	172	1,002	613
Less net income for noncontrolling interests	0	(1)	(1)	(3)
Net income attributable to Eaton ordinary shareholders	535	171	1,001	610
Other comprehensive loss	230	83	(404)	86
Total comprehensive income (loss) attributable to Eaton ordinary shareholders	765	254	597	696
Eaton Corporation plc [Member]
Consolidating Statements of Comprehensive Income, Captions [Line Items]
Net sales	0	0	0	0
Cost of products sold	0	0	0	0
Selling and administrative expense	2	(2)	4	0
Litigation settlements		0		0
Research and development expense	0	0	0	0
Interest expense (income) - net	0	0	0	0
Other (income) expense - net	0	0	0	0
Equity in earnings of subsidiaries, net of tax	(619)	(231)	(1,164)	(700)
Intercompany expense (income) - net	82	62	159	90
Income before income taxes	535	171	1,001	610
Income tax (benefit) expense	0	0	0	0
Net income	535	171	1,001	610
Less net income for noncontrolling interests	0	0	0	0
Net income attributable to Eaton ordinary shareholders	535	171	1,001	610
Other comprehensive loss	230	83	(404)	86
Total comprehensive income (loss) attributable to Eaton ordinary shareholders	765	254	597	696
Eaton Corporation [Member]
Consolidating Statements of Comprehensive Income, Captions [Line Items]
Net sales	1,806	1,750	3,508	3,417
Cost of products sold	1,433	1,378	2,743	2,720
Selling and administrative expense	368	370	745	731
Litigation settlements		644		644
Research and development expense	66	62	137	122
Interest expense (income) - net	58	55	112	114
Other (income) expense - net	11	(50)	6	(45)
Equity in earnings of subsidiaries, net of tax	(62)	(194)	(273)	(187)
Intercompany expense (income) - net	(267)	(47)	(308)	(117)
Income before income taxes	199	(468)	346	(565)
Income tax (benefit) expense	41	(255)	19	(269)
Net income	158	(213)	327	(296)
Less net income for noncontrolling interests	0	0	0	0
Net income attributable to Eaton ordinary shareholders	158	(213)	327	(296)
Other comprehensive loss	16	37	62	67
Total comprehensive income (loss) attributable to Eaton ordinary shareholders	174	(176)	389	(229)
Guarantors [Member]
Consolidating Statements of Comprehensive Income, Captions [Line Items]
Net sales	1,705	1,779	3,401	3,420
Cost of products sold	1,273	1,288	2,568	2,506
Selling and administrative expense	172	193	348	393
Litigation settlements		0		0
Research and development expense	49	52	94	102
Interest expense (income) - net	5	6	11	13
Other (income) expense - net	(7)	(95)	(8)	(92)
Equity in earnings of subsidiaries, net of tax	(805)	(256)	(1,518)	(747)
Intercompany expense (income) - net	481	146	752	278
Income before income taxes	537	445	1,154	967
Income tax (benefit) expense	(38)	78	(17)	71
Net income	575	367	1,171	896
Less net income for noncontrolling interests	0	0	0	0
Net income attributable to Eaton ordinary shareholders	575	367	1,171	896
Other comprehensive loss	234	90	(386)	115
Total comprehensive income (loss) attributable to Eaton ordinary shareholders	809	457	785	1,011
Other subsidiaries [Member]
Consolidating Statements of Comprehensive Income, Captions [Line Items]
Net sales	3,248	3,354	6,364	6,645
Cost of products sold	2,322	2,473	4,599	4,865
Selling and administrative expense	359	423	719	822
Litigation settlements		0		0
Research and development expense	43	54	85	106
Interest expense (income) - net	(2)	(8)	(7)	(14)
Other (income) expense - net	(23)	(21)	(22)	(34)
Equity in earnings of subsidiaries, net of tax	(129)	214	(258)	259
Intercompany expense (income) - net	(296)	(161)	(603)	(251)
Income before income taxes	974	380	1,851	892
Income tax (benefit) expense	75	63	116	101
Net income	899	317	1,735	791
Less net income for noncontrolling interests	(1)	(1)	(2)	(3)
Net income attributable to Eaton ordinary shareholders	898	316	1,733	788
Other comprehensive loss	282	116	(464)	70
Total comprehensive income (loss) attributable to Eaton ordinary shareholders	1,180	432	1,269	858
Consolidating adjustments [Member]
Consolidating Statements of Comprehensive Income, Captions [Line Items]
Net sales	(1,387)	(1,116)	(2,678)	(2,223)
Cost of products sold	(1,353)	(1,114)	(2,642)	(2,208)
Selling and administrative expense	0	0	0	0
Litigation settlements		0		0
Research and development expense	0	0	0	0
Interest expense (income) - net	(2)	2	0	4
Other (income) expense - net	0	0	0	0
Equity in earnings of subsidiaries, net of tax	1,615	467	3,213	1,375
Intercompany expense (income) - net	0	0	0	0
Income before income taxes	(1,647)	(471)	(3,249)	(1,394)
Income tax (benefit) expense	(15)	(1)	(17)	(6)
Net income	(1,632)	(470)	(3,232)	(1,388)
Less net income for noncontrolling interests	1	0	1	0
Net income attributable to Eaton ordinary shareholders	(1,631)	(470)	(3,231)	(1,388)
Other comprehensive loss	(532)	(243)	788	(252)
Total comprehensive income (loss) attributable to Eaton ordinary shareholders	$ (2,163)	$ (713)	$ (2,443)	$ (1,640)

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Fair Value Measurements (Details) - USD ($) $ in Millions	Jun. 30, 2015	Dec. 31, 2014	Jun. 30, 2014	Dec. 31, 2013
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items]
Cash	$ 303	$ 781	$ 631	$ 915
Short-term investments	127	245
Net derivative contracts	73	70
Long-term debt converted to floating interest rates by interest rate swaps - net	(71)	(74)
Level 1 [Member]
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items]
Cash	303	781
Short-term investments	127	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	73	70
Long-term debt converted to floating interest rates by interest rate swaps - net	(71)	(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	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Operating activities
Net income	$ 1,002	$ 613
Adjustments to reconcile to net cash provided by operating activities
Depreciation and amortization	460	499
Deferred income taxes	(29)	(256)
Pension and other postretirement benefits expense	158	180
Contributions to pension plans	(258)	(304)
Contributions to other postretirement benefits plans	(16)	(24)
Excess tax benefit from equity-based compensation	0	(20)
Gain on sale of businesses	0	69
Changes in working capital	(506)	116
Other - net	(155)	(90)
Net cash provided by operating activities	656	645
Investing activities
Cash paid for acquisitions of businesses, net of cash acquired	(38)	0
Capital expenditures for property, plant and equipment	(246)	(236)
Sales of short-term investments - net	109	162
Proceeds from sale of businesses	1	273
Other - net	(33)	(51)
Net cash (used in) provided by investing activities	(207)	148
Financing activities
Proceeds from borrowings	137	0
Payments on borrowings	(404)	(576)
Cash dividends paid	(514)	(467)
Exercise of employee stock options	46	44
Repurchase of shares	170	99
Excess tax benefit from equity-based compensation	0	20
Other - net	(7)	0
Net cash used in financing activities	(912)	(1,078)
Effect of currency on cash	(15)	1
Total decrease in cash	(478)	(284)
Cash at the beginning of the period	781	915
Cash at the end of the period	$ 303	$ 631

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Goodwill

6 Months Ended

Jun. 30, 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
Reclassifications	(106		)	106			—			—		—			—
Translation	(106		)	(66		)	(42		)	1		(4		)	(217		)
June 30, 2015	$	6,728		$	4,376		$	1,285		$	963	$	346		$	13,698

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Inventory (Tables)

6 Months Ended

Jun. 30, 2015

Inventory Disclosure [Abstract]

Components of inventory

The components of inventory follow:

	June 30, 2015			December 31, 2014
Raw materials	$	1,130		$	924
Work-in-process	279			422
Finished goods	1,152			1,201
Inventory at FIFO	2,561			2,547
Excess of FIFO over LIFO cost	(122		)	(119		)
Total inventory	$	2,439		$	2,428

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Changes in Accumulated Other Comprehensive (Loss) Income (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Amounts reclassified from Accumulated other comprehensive loss			$ 70
Net current-period Other comprehensive (loss) income	$ 230	$ 83	(404)	$ 86
Currency translation and related hedging instruments [Member]
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance at December 31, 2014			(1,414)
Other comprehensive (loss) income before reclassifications			(511)
Amounts reclassified from Accumulated other comprehensive loss			0
Net current-period Other comprehensive (loss) income			(511)
Balance at June 30, 2015	(1,925)		(1,925)
Pensions and other postretirement benefits [Member]
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance at December 31, 2014			(1,485)
Other comprehensive (loss) income before reclassifications			30
Amounts reclassified from Accumulated other comprehensive loss			74
Net current-period Other comprehensive (loss) income			104
Balance at June 30, 2015	(1,381)		(1,381)
Cash flow hedges [Member]
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance at December 31, 2014			0
Other comprehensive (loss) income before reclassifications			7
Amounts reclassified from Accumulated other comprehensive loss			(4)
Net current-period Other comprehensive (loss) income			3
Balance at June 30, 2015	3		3
Total AOCI Attributable to Parent [Member]
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance at December 31, 2014			(2,899)
Other comprehensive (loss) income before reclassifications			(474)
Amounts reclassified from Accumulated other comprehensive loss			70
Net current-period Other comprehensive (loss) income			(404)
Balance at June 30, 2015	$ (3,303)		$ (3,303)

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Basis of Presentation Basis of Presentation (Policies)

6 Months Ended

Jun. 30, 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 and 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 July 2015, the FASB made a decision to defer the effective date of the new standard for one year and permit early adoption as of the original effective date. 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.