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 September 30, 2016

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)

+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 451.7 million Ordinary Shares outstanding as of September 30, 2016.

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	23
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	29
ITEM 4. CONTROLS AND PROCEDURES	29
PART II — OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS	29
ITEM 1A. RISK FACTORS	29
ITEM 2. UNRESTRICTED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS	30
ITEM 6. EXHIBITS	30
SIGNATURES	31
EXHIBIT INDEX	32
EX-12
EX-31.1
EX-31.2
EX-32.1
EX-32.2
EX-101 INSTANCE DOCUMENT
EX-101 SCHEMA DOCUMENT
EX-101 CALCULATION LINKBASE DOCUMENT
EX-101 DEFINITION LINKBASE DOCUMENT
EX-101 LABELS LINKBASE DOCUMENT
EX-101 PRESENTATION LINKBASE DOCUMENT

PART I — FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS.

EATON CORPORATION plc

CONSOLIDATED STATEMENTS OF INCOME

	Three months ended September 30						Nine months ended September 30
(In millions except for per share data)	2016			2015			2016			2015
Net sales	$	4,987		$	5,203		$	14,880		$	15,798
Cost of products sold	3,371			3,597			10,081			10,865
Selling and administrative expense	853			907			2,642			2,723
Research and development expense	146			156			444			472
Interest expense - net	59			59			173			175
Other income - net	(15		)	(3		)	(28		)	(27		)
Income before income taxes	573			487			1,568			1,590
Income tax expense	51			42			151			143
Net income	522			445			1,417			1,447
Less net loss for noncontrolling interests	1			1			1			—
Net income attributable to Eaton ordinary shareholders	$	523		$	446		$	1,418		$	1,447
Net income per share attributable to Eaton ordinary shareholders
Diluted	$	1.15		$	0.96		$	3.09		$	3.09
Basic	1.15			0.96			3.10			3.10
Weighted-average number of ordinary shares outstanding
Diluted	455.6			466.4			457.9			468.5
Basic	453.9			465.1			456.5			466.8
Cash dividends declared per ordinary share	$	0.57		$	0.55		$	1.71		$	1.65

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 September 30						Nine months ended September 30
(In millions)	2016			2015			2016			2015
Net income	$	522		$	445		$	1,417		$	1,447
Less net loss for noncontrolling interests	1			1			1			—
Net income attributable to Eaton ordinary shareholders	523			446			1,418			1,447
Other comprehensive (loss) income, net of tax
Currency translation and related hedging instruments	(22		)	(372		)	(57		)	(883		)
Pensions and other postretirement benefits	45			60			132			164
Cash flow hedges	1			—			(33		)	3
Other comprehensive (loss) income attributable to Eaton    ordinary shareholders	24			(312		)	42			(716		)
Total comprehensive income attributable to Eaton   ordinary shareholders	$	547		$	134		$	1,460		$	731

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

3

EATON CORPORATION plc

CONDENSED CONSOLIDATED BALANCE SHEETS

(In millions)	September 30, 2016		December 31, 2015
Assets
Current assets
Cash	$	494	$	268
Short-term investments	213		177
Accounts receivable - net	3,659		3,479
Inventory	2,328		2,323
Prepaid expenses and other current assets	393		369
Total current assets	7,087		6,616
Property, plant and equipment - net	3,506		3,565
Other noncurrent assets
Goodwill	13,434		13,479
Other intangible assets	5,689		6,014
Deferred income taxes	412		362
Other assets	1,109		960
Total assets	$	31,237	$	30,996
Liabilities and shareholders’ equity
Current liabilities
Short-term debt	$	1	$	426
Current portion of long-term debt	550		242
Accounts payable	1,790		1,758
Accrued compensation	388		366
Other current liabilities	1,866		1,833
Total current liabilities	4,595		4,625
Noncurrent liabilities
Long-term debt	7,881		7,746
Pension liabilities	1,532		1,586
Other postretirement benefits liabilities	429		440
Deferred income taxes	366		390
Other noncurrent liabilities	988		978
Total noncurrent liabilities	11,196		11,140
Shareholders’ equity
Eaton shareholders’ equity	15,404		15,186
Noncontrolling interests	42		45
Total equity	15,446		15,231
Total liabilities and equity	$	31,237	$	30,996

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

4

EATON CORPORATION plc

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

	Nine months ended September 30
(In millions)	2016			2015
Operating activities
Net income	$	1,417		$	1,447
Adjustments to reconcile to net cash provided by operating activities
Depreciation and amortization	700			692
Deferred income taxes	(105		)	(101		)
Pension and other postretirement benefits expense	177			244
Contributions to pension plans	(114		)	(290		)
Contributions to other postretirement benefits plans	(26		)	(24		)
Changes in working capital	(224		)	(184		)
Other - net	89			(155		)
Net cash provided by operating activities	1,914			1,629
Investing activities
Capital expenditures for property, plant and equipment	(346		)	(368		)
Cash received from (paid for) acquisitions of businesses, net of cash acquired	1			(38		)
Sales (purchases) of short-term investments - net	(29		)	76
Proceeds from sale of businesses	—			1
Other - net	3			(44		)
Net cash used in investing activities	(371		)	(373		)
Financing activities
Proceeds from borrowings	633			1
Payments on borrowings	(666		)	(405		)
Cash dividends paid	(780		)	(771		)
Exercise of employee stock options	60			48
Repurchase of shares	(567		)	(454		)
Other - net	(5		)	(8		)
Net cash used in financing activities	(1,325		)	(1,589		)
Effect of currency on cash	8			(30		)
Total increase (decrease) in cash	226			(363		)
Cash at the beginning of the period	268			781
Cash at the end of the period	$	494		$	418

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 2015 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.

During the first quarter of 2016, the Company adopted Accounting Standards Update 2015-03, Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs (ASU 2015-03). ASU 2015-03 requires that debt issuance costs be presented in the balance sheet as a direct deduction from the related debt liability rather than an asset. The Company has applied this standard retrospectively. The adoption of ASU 2015-03 resulted in the reclassification of $36 and $35 within the Company's Condensed Consolidated Balance Sheets as of September 30, 2016 and December 31, 2015, respectively, from Other noncurrent assets to a reduction in Long-term debt.

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

Recently Issued Accounting Pronouncements

In February 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update 2016-02, Leases (Topic 842), (ASU 2016-02). This accounting standard requires that a lessee recognize a lease asset and a lease liability on its balance sheet for all leases, including operating leases, with a term greater than 12 months. ASU 2016-02 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, 2018. Eaton is evaluating the impact of ASU 2016-02 and an estimate of the impact to the consolidated financial statements cannot be made at this time.

In May 2014, the FASB issued Accounting Standards Update 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 August 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers: Deferral of the Effective Date (ASU 2015-14). This accounting standard defers the effective date of ASU 2014-09 for one year and permits 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. ACQUISITIONS OF BUSINESSES

Acquisition of Ephesus Lighting, Inc.

On October 28, 2015, Eaton acquired Ephesus Lighting, Inc. (Ephesus). Ephesus is a leader in LED lighting for stadiums and other high lumen outdoor and industrial applications. Its sales for the 12 months ended September 30, 2015 were $23. Ephesus is reported within the Electrical Products business segment.

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. Its sales for the 12 months ended December 31, 2014 were $9. Oxalis is reported within the Electrical Systems and Services business segment.

6

Note 3. ACQUISITION INTEGRATION CHARGES

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

	Three months ended September 30				Nine months ended September 30
	2016		2015		2016		2015
Electrical Products	$	1	$	5	$	2	$	17
Electrical Systems and Services	—		3		1		10
Hydraulics	—		—		—		2
Total business segments	1		8		3		29
Corporate	—		2		—		4
Total acquisition integration charges before income taxes	1		10		3		33
Income taxes	—		3		1		11
Total after income taxes	$	1	$	7	$	2	$	22
Per ordinary share - diluted	$	—	$	0.01	$	—	$	0.05

Business segment acquisition integration charges in 2016 related to the integration of Ephesus Lighting, Inc. (Ephesus) and

Oxalis Group Ltd. (Oxalis), which were acquired in 2015. The charges associated with Ephesus were included in Cost of

products sold and Selling and administrative expense, while the charges associated with Oxalis were included in Cost of

products sold. Business segment acquisition integration charges in 2015 related primarily to the integration of Cooper

Industries plc (Cooper), which was acquired in 2012. 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 14 for additional information about business segments.

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

Note 4. RESTRUCTURING CHARGES

During 2015, Eaton announced its intention to undertake actions to reduce its cost structure in all business segments and at corporate. Restructuring charges for the three and nine months ended September 30, 2016, were $23 and $121, respectively, and were $113 and $127 for the three and nine months ended September 30, 2015, respectively. The charges associated with restructuring activities are anticipated to be $145 in 2016 and $180 in 2017.

A summary of restructuring charges by type follows:

	Three months ended September 30				Nine months ended September 30
	2016		2015		2016		2015
Workforce reductions	$	18	$	99	$	95	$	111
Plant closings and other	5		14		26		16
Total	$	23	$	113	$	121	$	127

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A summary of restructuring charges by segment follows:

	Three months ended September 30					Nine months ended September 30
	2016			2015		2016		2015
Electrical Products	$	1		$	11	$	27	$	12
Electrical Systems & Services	7			26		20		26
Hydraulics	10			25		44		34
Aerospace	(1		)	5		3		5
Vehicle	5			29		22		33
Corporate	1			17		5		17
Total	$	23		$	113	$	121	$	127

A summary of liabilities related to workforce reductions, plant closings and other associated costs follows:

	Workforce reductions			Plant closings and other			Total
Balance at December 31, 2014	$	—		$	—		$	—
Liability recognized	112			17			129
Payments	(59		)	(3		)	(62		)
Other adjustments	1			(14		)	(13		)
Balance at December 31, 2015	54			—			54
Liability recognized	95			26			121
Payments	(89		)	(11		)	(100		)
Other adjustments	(1		)	(14		)	(15		)
Balance at September 30, 2016	$	59		$	1		$	60

These charges were included in Cost of products sold, Selling and administrative expenses or Other income-net, as appropriate. In Business Segment Information, the charges reduced Operating profit of the related business segment. See Note 14 for additional information about business segments.

Note 5. GOODWILL

A summary of goodwill follows:

	Electrical Products			Electrical Systems and Services			Hydraulics		Aerospace			Vehicle		Total
December 31, 2015	$	6,642		$	4,279		$	1,259	$	956		$	343	$	13,479
Translation	(24		)	(12		)	2		(13		)	2		(45		)
September 30, 2016	$	6,618		$	4,267		$	1,261	$	943		$	345	$	13,434

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Note 6.    DEBT

On September 20, 2016, a subsidiary of Eaton issued Euro denominated notes (Euro Notes) with a face value of €550 ($615 based on the September 20, 2016 spot rate), in accordance with Regulation S promulgated under the Securities Act of 1933, as amended. The Euro Notes mature in 2024 with interest payable annually at a rate of 0.75%. The issuer received proceeds totaling €544 ($609 based on the September 20, 2016 spot rate) from the issuance, net of financing costs and discounts. The senior Euro Notes are fully and unconditionally guaranteed on an unsubordinated, unsecured basis by Eaton and certain of its direct and indirect subsidiaries. The Euro Notes contain an optional redemption provision by which the Company may make an offer to purchase all or any part of the Euro Notes prior to June 20, 2024 at a purchase price of the greater of (a) 100% of the principal amount of the respective Euro Notes being redeemed, or (b) the sum of the present values of the respective remaining scheduled payments of principal and interest, discounted to the redemption date on an annual basis at the benchmark Bund Rate plus 20 basis points. In each case, the redemption price will include any accrued and unpaid interest on the Euro Notes being redeemed. At any time on or after June 20, 2024, the Company may redeem the Euro Notes, in whole or in part, at a redemption price equal to 100% of the principal amount to be redeemed plus accrued and unpaid interest. The Euro Notes also contain a change of control provision which requires the Company to make an offer to purchase all or any part of the Euro Notes at a purchase price of 101% of the principal amount plus accrued and unpaid interest. The capitalized deferred financing fees and discounts are amortized in Interest expense - net over the respective terms of the Euro Notes. The Euro Notes are subject to customary non-financial covenants.

On October 14, 2016, Eaton refinanced a $750, five-year revolving credit facility with a $750, five-year revolving credit facility that will expire October 14, 2021. Eaton also maintains a $500, four-year revolving credit facility that will expire on October 3, 2018 and a $750, five-year credit facility that will expire October 3, 2019. This refinancing maintains long-term revolving credit facilities at a total of $2,000. The revolving credit facilities are used to support commercial paper borrowings and are fully and unconditionally guaranteed by Eaton and certain of its direct and indirect subsidiaries on an unsubordinated, unsecured basis. There were no borrowings outstanding under these revolving credit facilities at September 30, 2016 or October 14, 2016.

Note 7. 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 September 30
	2016			2015			2016			2015			2016			2015
Service cost	$	28		$	31		$	16		$	18		$	1		$	2
Interest cost	31			39			16			18			4			6
Expected return on plan assets	(63		)	(65		)	(23		)	(25		)	(2		)	(2		)
Amortization	23			29			8			10			(2		)	—
	19			34			17			21			1			6
Settlements	24			25			—			—			—			—
Total expense	$	43		$	59		$	17		$	21		$	1		$	6

	United States pension benefit expense						Non-United States pension benefit expense						Other postretirement benefits expense
	Nine months ended September 30
	2016			2015			2016			2015			2016			2015
Service cost	$	83		$	92		$	49		$	55		$	3		$	5
Interest cost	94			117			48			54			13			18
Expected return on plan assets	(188		)	(196		)	(71		)	(75		)	(5		)	(4		)
Amortization	69			89			25			30			(6		)	1
	58			102			51			64			5			20
Settlements and curtailments	63			58			—			—			—			—
Total expense	$	121		$	160		$	51		$	64		$	5		$	20

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Note 8. 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. Insurance may cover some of the 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 December 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. The judgment was based on an alleged violation of an agency agreement between Raysul and Saturnia. At March 31, 2016, the Company had a total accrual of 100 Brazilian Reais related to this matter ($31 based on June 2016 exchange rates). In June 2016, Eaton signed a settlement agreement and resolved the matter, which did not have a material impact on the consolidated financial statements.

Note 9. INCOME TAXES

The effective income tax rate for the third quarter and first nine months of 2016 was expense of 9%, and 10%, respectively, compared to an expense of 9% for the third quarter and first nine months of 2015. The increase in the effective tax rate in the first nine months of 2016 was primarily due to more income earned in higher tax jurisdictions.

Note 10. EQUITY

On October 22, 2013, Eaton's Board of Directors adopted a share repurchase program (2013 Program) that authorizes the repurchase of 40 million ordinary shares. During the first quarter of 2016, 1.5 million ordinary shares were repurchased under the 2013 Program in the open market at a total cost of $82. During the three and nine months ended September 30, 2015, 4.8 million and 7.2 million ordinary shares were repurchased under the 2013 Program in the open market at a total cost of $284 and $454, respectively. On February 24, 2016, the Board of Directors approved a new share repurchase program for share repurchases up to $2,500 of ordinary shares (2016 Program). Under the 2016 Program, the ordinary shares are expected to be repurchased over time, depending on market conditions, the market price of ordinary shares, capital levels, and other considerations. During the three and nine months ended September 30, 2016, 3.7 million and 7.7 million ordinary shares, respectively, were purchased on the open market under the 2016 Program for a total cost of $243 and $485, respectively.

The changes in Shareholders’ equity follow:

	Eaton shareholders’ equity			Noncontrolling interests			Total equity
Balance at December 31, 2015	$	15,186		$	45		$	15,231
Net income (loss)	1,418			(1		)	1,417
Other comprehensive income	42			—			42
Cash dividends paid	(780		)	(2		)	(782		)
Issuance of shares under equity-based compensation plans - net	105			—			105
Repurchase of shares	(567		)	—			(567		)
Balance at September 30, 2016	$	15,404		$	42		$	15,446

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, 2015	$	(2,492	)	$	(1,374	)	$	3		$	(3,863	)
Other comprehensive (loss) income    before reclassifications	(57		)	33			(35		)	(59		)
Amounts reclassified from Accumulated other    comprehensive loss (income)	—			99			2			101
Net current-period Other comprehensive    income (loss)	(57		)	132			(33		)	42
Balance at September 30, 2016	$	(2,549	)	$	(1,242	)	$	(30	)	$	(3,821	)

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The reclassifications out of Accumulated other comprehensive loss follow:

	Nine months ended September 30, 2016				Consolidated statements of income classification
Amortization of defined benefit pensions and other postretirement benefits items
Actuarial loss and prior service cost	$	(151	)	1
Tax benefit	52
Total, net of tax	(99		)
Gains and (losses) on cash flow hedges
Currency exchange contracts	(3		)		Cost of products sold
Tax benefit	1
Total, net of tax	(2		)
Total reclassifications for the period	$	(101	)

¹ These components of Accumulated other comprehensive loss are included in the computation of net periodic benefit cost. See Note 7 for additional information about pension and other postretirement benefits items.

Net Income Per Share Attributable to Eaton Ordinary Shareholders

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

	Three months ended September 30				Nine months ended September 30
(Shares in millions)	2016		2015		2016		2015
Net income attributable to Eaton ordinary shareholders	$	523	$	446	$	1,418	$	1,447
Weighted-average number of ordinary shares outstanding - diluted	455.6		466.4		457.9		468.5
Less dilutive effect of equity-based compensation	1.7		1.3		1.4		1.7
Weighted-average number of ordinary shares outstanding - basic	453.9		465.1		456.5		466.8
Net income per share attributable to Eaton ordinary shareholders
Diluted	$	1.15	$	0.96	$	3.09	$	3.09
Basic	1.15		0.96		3.10		3.10

For the third quarter and first nine months of 2016, 1.5 million and 1.8 million stock options, respectively, were excluded from the calculation of diluted net income per share attributable to Eaton ordinary shareholders 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 third quarter and first nine months of 2015, 1.8 million and 1.3 million stock options, respectively, were excluded from the calculation of diluted net income per share attributable to Eaton ordinary shareholders because the exercise price of the options exceeded the average market price of the ordinary shares during the periods and their effect, accordingly, would have been antidilutive.

Note 11. FAIR VALUE MEASUREMENTS

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

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

	Total			Level 1		Level 2			Level 3
September 30, 2016
Cash	$	494		$	494	$	—		$	—
Short-term investments	213			213		—			—
Net derivative contracts	148			—		148			—
Long-term debt converted to floating interest rates by    interest rate swaps - net	(172		)	—		(172		)	—
December 31, 2015
Cash	$	268		$	268	$	—		$	—
Short-term investments	177			177		—			—
Net derivative contracts	86			—		86			—
Long-term debt converted to floating interest rates by    interest rate swaps - net	(94		)	—		(94		)	—

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 $8,431 and fair value of $9,050 at September 30, 2016 compared to $7,988 and $8,231, respectively, at December 31, 2015. 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 12. 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.

12

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 as non-derivative net investment hedging instruments on an after-tax basis was $99 at September 30, 2016 and $83 at December 31, 2015, and designated on a pre-tax basis was $607 at September 30, 2016.

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
September 30, 2016
Derivatives designated as hedges
Fixed-to-floating interest rate  swaps	$	3,765	$	—	$	172	$	—	$	—	Fair value	1 month to 19 years
Forward starting floating-to-fixed  interest rate swaps	450		—		—		—		18		Cash flow	12 years
Currency exchange contracts	826		5		1		19		14		Cash flow	1 to 36 months
Total			$	5	$	173	$	19	$	32
Derivatives not designated as  hedges
Currency exchange contracts	$	3,991	$	34	$	—	$	15	$	—		1 to 24 months
Commodity contracts	41		2				—					1 to 12 months
Total			$	36	$	—	$	15	$	—
December 31, 2015
Derivatives designated as hedges
Fixed-to-floating interest rate  swaps	$	3,715	$	—	$	96	$	—	$	2	Fair value	2 to 19 years
Forward starting floating-to-fixed  interest rate swaps	50		—		—		—		—		Cash flow	12 years
Currency exchange contracts	724		18		1		8		6		Cash flow	1 to 36 months
Commodity contracts	1		—		—		—		—		Cash flow	1 to 12 months
Total			$	18	$	97	$	8	$	8
Derivatives not designated as  hedges
Currency exchange contracts	$	4,198	$	27			$	40				1 to 12 months
Total			$	27			$	40

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.

13

The impact of derivative instruments to the Consolidated Statement of Income and Comprehensive Income follow:

	Gain (loss) recognized in other comprehensive (loss) income					Location of gain (loss) reclassified from Accumulated other comprehensive loss	Gain (loss) reclassified from Accumulated other comprehensive loss
	Three months ended September 30						Three months ended September 30
	2016			2015			2016			2015
Derivatives designated as    cash flow hedges
Forward starting floating-to-fixed  interest rate swaps	$	1		$	—	Interest expense - net	$	—		$	—
Currency exchange contracts	(3		)	6		Cost of products sold	(4		)	5
Total	$	(2	)	$	6		$	(4	)	$	5

	Gain (loss) recognized in other comprehensive (loss) income					Location of gain (loss) reclassified from Accumulated other comprehensive loss	Gain (loss) reclassified from Accumulated other comprehensive loss
	Nine months ended September 30						Nine months ended September 30
	2016			2015			2016			2015
Derivatives designated as cash    flow hedges
Forward starting floating-to-fixed  interest rate swaps	$	(18	)	$	—	Interest expense - net	$	—		$	—
Currency exchange contracts	(35		)	16		Cost of products sold	(3		)	11
Total	$	(53	)	$	16		$	(3	)	$	11

Amounts recognized in net income follow:

	Three months ended September 30						Nine months ended September 30
	2016			2015			2016			2015
Derivatives designated as fair value hedges
Fixed-to-floating interest rate swaps	$	(28	)	$	65		$	78		$	62
Related long-term debt converted to floating interest    rates by interest rate swaps	28			(65		)	(78		)	(62		)
	$	—		$	—		$	—		$	—

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

Note 13. INVENTORY

The components of inventory follow:

	September 30, 2016			December 31, 2015
Raw materials	$	910		$	885
Work-in-process	431			412
Finished goods	1,083			1,131
Inventory at FIFO	2,424			2,428
Excess of FIFO over LIFO cost	(96		)	(105		)
Total inventory	$	2,328		$	2,323

14

Note 14. 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 15 to the Consolidated Financial Statements contained in the 2015 Form 10-K.

	Three months ended September 30						Nine months ended September 30
	2016			2015			2016			2015
Net sales
Electrical Products	$	1,767		$	1,771		$	5,231		$	5,246
Electrical Systems and Services	1,436			1,487			4,207			4,437
Hydraulics	562			599			1,702			1,907
Aerospace	436			449			1,328			1,367
Vehicle	786			897			2,412			2,841
Total net sales	$	4,987		$	5,203		$	14,880		$	15,798
Segment operating profit
Electrical Products	$	331		$	322		$	924		$	858
Electrical Systems and Services	197			164			534			573
Hydraulics	61			44			161			184
Aerospace	88			79			251			233
Vehicle	122			136			377			490
Total segment operating profit	799			745			2,247			2,338
Corporate
Amortization of intangible assets	(99		)	(102		)	(297		)	(306		)
Interest expense - net	(59		)	(59		)	(173		)	(175		)
Pension and other postretirement benefits expense	(18		)	(38		)	(45		)	(99		)
Other corporate expense - net	(50		)	(59		)	(164		)	(168		)
Income before income taxes	573			487			1,568			1,590
Income tax expense	51			42			151			143
Net income	522			445			1,417			1,447
Less net loss for noncontrolling interests	1			1			1			—
Net income attributable to Eaton ordinary shareholders	$	523		$	446		$	1,418		$	1,447

15

Note 15. CONDENSED CONSOLIDATING FINANCIAL STATEMENTS

On November 14, 2013, Eaton Corporation registered senior notes 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 2015 and 2016, 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 SEPTEMBER 30, 2016
	Eaton Corporation plc			Eaton Corporation			Guarantors			Other subsidiaries			Consolidating adjustments			Total
Net sales	$	—		$	1,660		$	1,583		$	3,040		$	(1,296	)	$	4,987
Cost of products sold	—			1,329			1,162			2,173			(1,293		)	3,371
Selling and administrative expense	2			330			197			324			—			853
Research and development expense	—			59			43			44			—			146
Interest expense (income) - net	—			59			4			(3		)	(1		)	59
Other expense (income) - net	(1		)	18			—			(32		)	—			(15		)
Equity in loss (earnings) of    subsidiaries, net of tax	(628		)	(173		)	(895		)	(219		)	1,915			—
Intercompany expense (income) - net	104			(47		)	336			(393		)	—			—
Income (loss) before income taxes	523			85			736			1,146			(1,917		)	573
Income tax expense (benefit)	—			(11		)	10			53			(1		)	51
Net income (loss)	523			96			726			1,093			(1,916		)	522
Less net loss (income) for    noncontrolling interests	—			—			—			—			1			1
Net income (loss) attributable to    Eaton ordinary shareholders	$	523		$	96		$	726		$	1,093		$	(1,915	)	$	523
Other comprehensive income (loss)	$	24		$	24		$	29		$	2		$	(55	)	$	24
Total comprehensive income   (loss) attributable to Eaton   ordinary shareholders	$	547		$	120		$	755		$	1,095		$	(1,970	)	$	547

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CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2015
	Eaton Corporation plc			Eaton Corporation			Guarantors			Other subsidiaries			Consolidating adjustments			Total
Net sales	$	—		$	1,755		$	1,664		$	3,105		$	(1,321	)	$	5,203
Cost of products sold	—			1,380			1,269			2,265			(1,317		)	3,597
Selling and administrative expense	2			375			191			339			—			907
Research and development expense	—			65			51			40			—			156
Interest expense (income) - net	—			54			5			(3		)	3			59
Other expense (income) - net	—			11			3			(17		)	—			(3		)
Equity in loss (earnings) of    subsidiaries, net of tax	(534		)	(264		)	(888		)	(64		)	1,750			—
Intercompany expense (income) - net	86			(54		)	258			(290		)	—			—
Income (loss) before income taxes	446			188			775			835			(1,757		)	487
Income tax expense (benefit)				17			(15		)	38			2			42
Net income (loss)	446			171			790			797			(1,759		)	445
Less net loss (income) for    noncontrolling interests	—			—			—			1			—			1
Net income (loss) attributable to    Eaton ordinary shareholders	$	446		$	171		$	790		$	798		$	(1,759	)	$	446
Other comprehensive income (loss)	$	(312	)	$	(24	)	$	(305	)	$	(411	)	$	740		$	(312	)
Total comprehensive income    (loss) attributable to Eaton    ordinary shareholders	$	134		$	147		$	485		$	387		$	(1,019	)	$	134

CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2016
	Eaton Corporation plc			Eaton Corporation			Guarantors			Other subsidiaries			Consolidating adjustments			Total
Net sales	$	—		$	4,842		$	4,793		$	8,983		$	(3,738	)	$	14,880
Cost of products sold	—			3,788			3,554			6,478			(3,739		)	10,081
Selling and administrative expense	6			1,048			583			1,005			—			2,642
Research and development expense	—			176			138			130			—			444
Interest expense (income) - net	—			169			13			(13		)	4			173
Other expense (income) - net	(1		)	34			(3		)	(58		)	—			(28		)
Equity in loss (earnings) of    subsidiaries, net of tax	(1,726		)	(495		)	(2,384		)	(434		)	5,039			—
Intercompany expense (income) - net	303			(135		)	913			(1,081		)	—			—
Income (loss) before income taxes	1,418			257			1,979			2,956			(5,042		)	1,568
Income tax expense (benefit)	—			9			24			119			(1		)	151
Net income (loss)	1,418			248			1,955			2,837			(5,041		)	1,417
Less net loss (income) for    noncontrolling interests	—			—			—			(2		)	3			1
Net income (loss) attributable to    Eaton ordinary shareholders	$	1,418		$	248		$	1,955		$	2,835		$	(5,038	)	$	1,418
Other comprehensive income (loss)	$	42		$	68		$	54		$	(21	)	$	(101	)	$	42
Total comprehensive income    (loss) attributable to Eaton    ordinary shareholders	$	1,460		$	316		$	2,009		$	2,814		$	(5,139	)	$	1,460

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CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2015
	Eaton Corporation plc			Eaton Corporation			Guarantors			Other subsidiaries			Consolidating adjustments			Total
Net sales	$	—		$	5,263		$	5,065		$	9,469		$	(3,999	)	$	15,798
Cost of products sold	—			4,123			3,837			6,864			(3,959		)	10,865
Selling and administrative expense	6			1,120			539			1,058			—			2,723
Research and development expense	—			202			145			125			—			472
Interest expense (income) - net	—			166			16			(10		)	3			175
Other expense (income) - net	—			17			(5		)	(39		)	—			(27		)
Equity in loss (earnings) of    subsidiaries, net of tax	(1,698		)	(529		)	(2,403		)	(315		)	4,945			—
Intercompany expense (income) - net	245			(362		)	1,010			(893		)	—			—
Income (loss) before income taxes	1,447			526			1,926			2,679			(4,988		)	1,590
Income tax expense (benefit)	—			36			(32		)	154			(15		)	143
Net income (loss)	1,447			490			1,958			2,525			(4,973		)	1,447
Less net loss (income) for    noncontrolling interests	—			—			—			(1		)	1			—
Net income (loss) attributable to    Eaton ordinary shareholders	$	1,447		$	490		$	1,958		$	2,524		$	(4,972	)	$	1,447
Other comprehensive income (loss)	$	(716	)	$	39		$	(691	)	$	(875	)	$	1,527		$	(716	)
Total comprehensive income (loss) attributable to Eaton ordinary shareholders	$	731		$	529		$	1,267		$	1,649		$	(3,445	)	$	731

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CONDENSED CONSOLIDATING BALANCE SHEETS SEPTEMBER 30, 2016
	Eaton Corporation plc		Eaton Corporation		Guarantors		Other subsidiaries		Consolidating adjustments			Total
Assets
Current assets
Cash	$	1	$	70	$	4	$	419	$	—		$	494
Short-term investments	—		—		—		213		—			213
Accounts receivable - net	—		510		1,072		2,077		—			3,659
Intercompany accounts    receivable	2		637		4,149		3,484		(8,272		)	—
Inventory	—		365		647		1,395		(79		)	2,328
Prepaid expenses and    other current assets	—		107		40		219		27			393
Total current assets	3		1,689		5,912		7,807		(8,324		)	7,087
Property, plant and    equipment - net	—		863		712		1,931		—			3,506
Other noncurrent assets
Goodwill	—		1,355		6,264		5,815		—			13,434
Other intangible assets	—		172		3,481		2,036		—			5,689
Deferred income taxes	—		987		—		231		(806		)	412
Investment in subsidiaries	32,690		13,491		72,562		12,194		(130,937		)	—
Intercompany loans receivable	—		7,614		2,182		56,101		(65,897		)	—
Other assets	—		603		129		377		—			1,109
Total assets	$	32,693	$	26,774	$	91,242	$	86,492	$	(205,964	)	$	31,237
Liabilities and    shareholders’ equity
Current liabilities
Short-term debt	$	—	$	—	$	—	$	1	$	—		$	1
Current portion of    long-term debt	—		251		299		—		—			550
Accounts payable	—		415		259		1,116		—			1,790
Intercompany accounts payable	194		3,966		2,982		1,130		(8,272		)	—
Accrued compensation	—		85		51		252		—			388
Other current liabilities	1		630		297		939		(1		)	1,866
Total current liabilities	195		5,347		3,888		3,438		(8,273		)	4,595
Noncurrent liabilities
Long-term debt	—		6,889		971		16		5			7,881
Pension liabilities	—		605		168		759		—			1,532
Other postretirement    benefits liabilities	—		237		114		78		—			429
Deferred income taxes	—		—		771		401		(806		)	366
Intercompany loans payable	17,094		2,377		44,900		1,526		(65,897		)	—
Other noncurrent liabilities	—		344		214		430		—			988
Total noncurrent liabilities	17,094		10,452		47,138		3,210		(66,698		)	11,196
Shareholders’ equity
Eaton shareholders' equity	15,404		10,975		40,216		79,807		(130,998		)	15,404
Noncontrolling interests	—		—		—		37		5			42
Total equity	15,404		10,975		40,216		79,844		(130,993		)	15,446
Total liabilities and equity	$	32,693	$	26,774	$	91,242	$	86,492	$	(205,964	)	$	31,237

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CONDENSED CONSOLIDATING BALANCE SHEETS DECEMBER 31, 2015
	Eaton Corporation plc		Eaton Corporation		Guarantors		Other subsidiaries		Consolidating adjustments			Total
Assets
Current assets
Cash	$	—	$	26	$	7	$	235	$	—		$	268
Short-term investments	—		—		2		175		—			177
Accounts receivable - net	—		512		1,030		1,937		—			3,479
Intercompany accounts    receivable	1		842		3,888		2,928		(7,659		)	—
Inventory	—		357		651		1,395		(80		)	2,323
Prepaid expenses and    other current assets	—		77		40		229		23			369
Total current assets	1		1,814		5,618		6,899		(7,716		)	6,616
Property, plant and    equipment - net	—		930		750		1,885		—			3,565
Other noncurrent assets
Goodwill	—		1,355		6,264		5,860		—			13,479
Other intangible assets	—		182		3,624		2,208		—			6,014
Deferred income taxes	—		1,016		—		218		(872		)	362
Investment in subsidiaries	29,627		12,883		60,139		10,046		(112,695		)	—
Intercompany loans receivable	—		8,641		1,573		44,835		(55,049		)	—
Other assets	—		492		122		346		—			960
Total assets	$	29,628	$	27,313	$	78,090	$	72,297	$	(176,332	)	$	30,996
Liabilities and    shareholders’ equity
Current liabilities
Short-term debt	$	—	$	408	$	—	$	18	$	—		$	426
Current portion of    long-term debt	—		1		240		1		—			242
Accounts payable	—		392		260		1,106		—			1,758
Intercompany accounts payable	219		4,009		2,248		1,183		(7,659		)	—
Accrued compensation	—		77		53		236		—			366
Other current liabilities	1		644		318		875		(5		)	1,833
Total current liabilities	220		5,531		3,119		3,419		(7,664		)	4,625
Noncurrent liabilities
Long-term debt	—		7,053		675		17		1			7,746
Pension liabilities	—		639		165		782		—			1,586
Other postretirement    benefits liabilities	—		245		118		77		—			440
Deferred income taxes	—		—		815		447		(872		)	390
Intercompany loans payable	14,222		2,962		36,432		1,433		(55,049		)	—
Other noncurrent liabilities	—		346		200		432		—			978
Total noncurrent liabilities	14,222		11,245		38,405		3,188		(55,920		)	11,140
Shareholders’ equity
Eaton shareholders' equity	15,186		10,537		36,566		65,653		(112,756		)	15,186
Noncontrolling interests	—		—		—		37		8			45
Total equity	15,186		10,537		36,566		65,690		(112,748		)	15,231
Total liabilities and equity	$	29,628	$	27,313	$	78,090	$	72,297	$	(176,332	)	$	30,996

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CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2016
	Eaton Corporation plc			Eaton Corporation			Guarantors			Other subsidiaries			Consolidating adjustments			Total
Net cash provided by (used in)    operating activities	$	(158	)	$	(29	)	$	(283	)	$	2,384		$	—		$	1,914
Investing activities
Capital expenditures for property,    plant and equipment	—			(62		)	(75		)	(209		)	—			(346		)
Cash received from (paid for) acquisitions of businesses, net of cash acquired	—			—			1			—			—			1
Sales (purchases) of short-term investments - net	—			—			2			(31		)	—			(29		)
Investments in affiliates	(1,250		)	—			(120		)	(1,370		)	2,740			—
Return of investments in affiliates	—			—			47			—			(47		)	—
Loans to affiliates	—			(287		)	(655		)	(6,457		)	7,399			—
Repayments of loans from affiliates	—			1,288			—			4,501			(5,789		)	—
Other - net	—			—			30			(27		)	—			3
Net cash provided by (used in) investing activities	(1,250		)	939			(770		)	(3,593		)	4,303			(371		)
Financing activities
Proceeds from borrowings	—			22			611			—			—			633
Payments on borrowings	—			(408		)	(240		)	(18		)	—			(666		)
Proceeds from borrowings from    affiliates	3,333			2,815			1,051			200			(7,399		)	—
Payments on borrowings from    affiliates	(637		)	(3,453		)	(1,658		)	(41		)	5,789			—
Capital contributions from affiliates	—			—			1,370			1,370			(2,740		)	—
Return of capital to affiliates	—			—			—			(47		)	47			—
Other intercompany financing    activities	—			158			(81		)	(77		)	—			—
Cash dividends paid	(780		)	—			—			—			—			(780		)
Exercise of employee stock options	60			—			—			—			—			60
Repurchase of shares	(567		)	—			—			—			—			(567		)
Excess tax benefit from    equity-based compensation	—			—			—			—			—			—
Other - net	—			—			(3		)	(2		)	—			(5		)
Net cash provided by (used in)    financing activities	1,409			(866		)	1,050			1,385			(4,303		)	(1,325		)
Effect of currency on cash	—			—			—			8			—			8
Total increase (decrease) in cash	1			44			(3		)	184			—			226
Cash at the beginning of the period	—			26			7			235			—			268
Cash at the end of the period	$	1		$	70		$	4		$	419		$	—		$	494

21

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2015
	Eaton Corporation plc			Eaton Corporation			Guarantors			Other subsidiaries			Consolidating adjustments			Total
Net cash provided by (used in)    operating activities	$	(85	)	$	(93	)	$	(23	)	$	1,830		$	—		$	1,629
Investing activities
Capital expenditures for property,    plant and equipment	—			(68		)	(100		)	(200		)	—			(368		)
Cash received from (paid for) acquisitions of businesses, net of cash acquired	—			—			—			(38		)	—			(38		)
Sales (purchases) of short-term investments - net	—			—			—			76			—			76
Investments in affiliates	(1,482		)	—			(1,176		)	(1,482		)	4,140			—
Loans to affiliates	—			(307		)	(39		)	(7,638		)	7,984			—
Repayments of loans from affiliates	—			306			58			5,514			(5,878		)	—
Proceeds from sale of businesses	—			—			—			1			—			1
Other - net	—			(41		)	33			(36		)	—			(44		)
Net cash provided by (used in)    investing activities	(1,482		)	(110		)	(1,224		)	(3,803		)	6,246			(373		)
Financing activities
Proceeds from borrowings	—			—			—			1			—			1
Payments on borrowings	—			(102		)	(301		)	(2		)	—			(405		)
Proceeds from borrowings from    affiliates	2,783			4,577			581			43			(7,984		)	—
Payments on borrowings from    affiliates	(40		)	(4,617		)	(1,160		)	(61		)	5,878			—
Capital contributions from affiliates	—			1,176			1,482			1,482			(4,140		)	—
Other intercompany financing activities	—			(859		)	644			215			—			—
Cash dividends paid	(771		)	—			—			—			—			(771		)
Exercise of employee stock options	48			—			—			—			—			48
Repurchase of shares	(454		)	—			—			—			—			(454		)
Other - net	—			—			—			(8		)	—			(8		)
Net cash provided by (used in)    financing activities	1,566			175			1,246			1,670			(6,246		)	(1,589		)
Effect of currency on cash	—			—			—			(30		)	—			(30		)
Total increase (decrease) in cash	(1		)	(28		)	(1		)	(333		)	—			(363		)
Cash at the beginning of the period	1			173			13			594			—			781
Cash at the end of the period	$	—		$	145		$	12		$	261		$	—		$	418

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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 2015 net sales of $20.9 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 95,000 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 share attributable to Eaton ordinary shareholders - diluted follows:

	Three months ended September 30				Nine months ended September 30
	2016		2015		2016		2015
Net sales	$	4,987	$	5,203	$	14,880	$	15,798
Net income attributable to Eaton ordinary shareholders	523		446		1,418		1,447
Net income per share attributable to Eaton ordinary shareholders - diluted	$	1.15	$	0.96	$	3.09	$	3.09

During 2015, Eaton announced a multi-year restructuring initiative to reduce its cost structure and gain efficiencies in all business segments and at corporate in order to respond to declining market conditions. Restructuring charges in the third quarter and first nine months of 2016 were $23 and $121, respectively, and were $113 and $127 in 2015, respectively. These charges were primarily comprised of severance costs. Restructuring charges are anticipated to be $145 in 2016 and $180 in 2017. The projected annualized savings from these restructuring actions are expected to be $508, when fully realized in 2018.

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 differs 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, and excludes acquisition integration expense related to the integration of Ephesus Lighting, Inc. and Oxalis Group Ltd. in 2016 and primarily Cooper Industries plc in 2015. Management believes that these financial measures are useful to investors because they exclude certain transactions, 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.

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Consolidated Financial Results

	Three months ended September 30						Increase (decrease)		Nine months ended September 30						Decrease
	2016			2015					2016			2015
Net sales	$	4,987		$	5,203		(4	)%	$	14,880		$	15,798		(6	)%
Gross profit	1,616			1,606			1	%	4,799			4,933			(3	)%
Percent of net sales	32.4		%	30.9		%			32.3		%	31.2		%
Income before income taxes	573			487			18	%	1,568			1,590			(1	)%
Net income	522			445			17	%	1,417			1,447			(2	)%
Less net loss for noncontrolling interests	1			1					1			—
Net income attributable to Eaton    ordinary shareholders	523			446			17	%	1,418			1,447			(2	)%
Excluding acquisition integration charges,   after-tax (Note 3)	1			7					2			22
Operating earnings	$	524		$	453		16	%	$	1,420		$	1,469		(3	)%
Net income per share attributable to Eaton ordinary     shareholders - diluted	$	1.15		$	0.96		20	%	$	3.09		$	3.09		—	%
Excluding per share impact of acquisition    integration charges, after-tax (Note 3)	—			0.01					—			0.05
Operating earnings per ordinary share	$	1.15		$	0.97		19	%	$	3.09		$	3.14		(2	)%

Net Sales

Net sales decreased 4% in the third quarter of 2016 compared to the third quarter of 2015 due to a decrease of 3% in organic sales and a decrease of 1% from the impact of negative currency translation. Net sales decreased 6% in the first nine months of 2016 compared to the first nine months of 2015 due to a decrease of 4% in organic sales and a 2% decrease from the impact of negative currency translation. The decrease in organic sales in the third quarter and first nine months of 2016 was primarily due to weakening demand in several of the Company's end markets.

Gross Profit

Gross profit margin increased from 30.9% in the third quarter of 2015 to 32.4% in the third quarter of 2016. The increase in gross profit margin in the third quarter of 2016 was primarily due to savings from restructuring actions, other cost control measures and lower restructuring charges, partially offset by lower sales volumes and unfavorable product mix. Gross profit margin increased from 31.2% in the first nine months of 2015 compared to 32.3% in the first nine months of 2016. The increase in gross profit margin in the first nine months of 2016 was primarily due to savings from restructuring actions and other cost control measures, partially offset by lower sales volumes and unfavorable product mix.

Income Taxes

The effective income tax rate for the third quarter and first nine months of 2016 was expense of 9%, and 10%, respectively, compared to an expense of 9% for the third quarter and first nine months of 2015. The increase in the effective tax rate in the first nine months of 2016 was primarily due to more income earned in higher tax jurisdictions.

Net Income

Net income attributable to Eaton ordinary shareholders of $523 in the third quarter of 2016 increased 17% compared to Net income attributable to Eaton ordinary shareholders of $446 in the third quarter of 2015. The increase in the third quarter of 2016 was primarily due to savings from restructuring actions, other cost control measures, lower restructuring charges, and a decrease in pension and other postretirement benefits expense, partially offset by lower sales volumes and unfavorable product mix. Net income attributable to Eaton ordinary shareholders in the first nine months of 2016 was $1,418 a decrease of 2% compared to $1,447 in the first nine months of 2015. The decrease in the first nine months of 2016 was primarily due to lower sales volumes and unfavorable product mix, partially offset by savings from restructuring actions, other cost control measures, and a decrease in pension and other postretirement benefits expense.

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Net income per ordinary share increased to $1.15 in the third quarter of 2016 compared to $0.96 in the third quarter of 2015. The increase in Net income per ordinary share in the third quarter of 2016 was due to higher Net income attributable to Eaton ordinary shareholders and the Company's share repurchases over the past year. Net income per ordinary share was flat at $3.09 in the first nine months of 2016 compared to the first nine months 2015 due to lower Net income attributable to Eaton ordinary shareholders offset by the impact of the Company's share repurchases over the past year.

Operating Earnings

Operating earnings of $524 in the third quarter of 2016 increased 16% compared to Operating earnings of $453 in the third quarter of 2015. The increase in Operating earnings in the third quarter of 2016 was primarily due to higher Net income attributable to Eaton ordinary shareholders, partially offset by lower acquisition integration charges. Operating earnings in the first nine months of 2016 was $1,420, a decrease of 3% compared to $1,469 in the first nine months of 2015. The decrease in Operating earnings in the first nine months of 2016 was primarily due to lower Net income attributable to Eaton ordinary shareholders and lower acquisition integration charges.

Operating earnings per ordinary share increased to $1.15 in the third quarter of 2016 compared to $0.97 in the third quarter of 2015. The increase in Operating earnings per ordinary share in the third quarter of 2016 was due to higher Operating earnings and the impact of the Company's share repurchases over the past year. Operating earnings per ordinary share decreased to $3.09 in the first nine months of 2016 compared to $3.14 in the first nine months of 2015. The decrease in Operating earnings per ordinary share in the first nine months of 2016 was due to lower Operating earnings, partially offset by the impact of the Company's share repurchases over the past year.

Business Segment Results of Operations

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

Electrical Products

	Three months ended September 30						Increase		Nine months ended September 30						Increase
	2016			2015					2016			2015
Net sales	$	1,767		$	1,771		—	%	$	5,231		$	5,246		—	%
Operating profit	$	331		$	322		3	%	$	924		$	858		8	%
Operating margin	18.7		%	18.2		%			17.7		%	16.4		%
Acquisition integration charges	$	1		$	5				$	2		$	17
Before acquisition integration charges
Operating profit	$	332		$	327		2	%	$	926		$	875		6	%
Operating margin	18.8		%	18.5		%			17.7		%	16.7		%

Net sales were broadly flat in the third quarter of 2016 compared to the third quarter of 2015, with an increase of 1% from the acquisitions of businesses offset by a decrease of 1% from the impact of negative currency translation. Net sales were also generally flat in the first nine months of 2016 compared to the first nine months of 2015, with an increase of 1% in organic sales offset by a decrease of 1% from the impact of negative currency translation. By region, organic sales grew in the first nine months of 2016 in the Americas and Europe, while sales declined in Asia Pacific.

Operating margin increased from 18.2% in the third quarter of 2015 to 18.7% in the third quarter of 2016. The increase in operating margin in the third quarter 2016 was primarily due to savings from restructuring actions and lower restructuring charges. Operating margin increased from 16.4% in the first nine months of 2015 to 17.7% in first nine months of 2016. The increase in operating margin in the first nine months of 2016 was primarily due to savings from restructuring actions and other cost control measures, partially offset by higher restructuring charges and unfavorable product mix.

Operating margin before acquisition integration charges increased from 18.5% in the third quarter of 2015 to 18.8% in the third quarter of 2016. The increase in operating margin before acquisition integration charges in the third quarter 2016 was primarily due to an increase in operating margin, partially offset by lower acquisition integration charges. Operating margin before acquisition integration charges increased from 16.7% in the first nine months of 2015 to 17.7% in first nine months of 2016. The increase in operating margin before acquisition integration charges in the first nine months of 2016 was primarily due to an increase in operating margin, partially offset by lower acquisition integration charges.

25

Electrical Systems and Services

	Three months ended September 30						Increase (decrease)		Nine months ended September 30						Decrease
	2016			2015					2016			2015
Net sales	$	1,436		$	1,487		(3	)%	$	4,207		$	4,437		(5	)%
Operating profit	$	197		$	164		20	%	$	534		$	573		(7	)%
Operating margin	13.7		%	11.0		%			12.7		%	12.9		%
Acquisition integration charges	$	—		$	3				$	1		$	10
Before acquisition integration charges
Operating profit	$	197		$	167		18	%	$	535		$	583		(8	)%
Operating margin	13.7		%	11.2		%			12.7		%	13.1		%

Net sales decreased 3% in the third quarter of 2016 compared to the third quarter of 2015 due to a decrease of 2% in organic sales and a decrease of 1% from the impact of negative currency translation. Net sales decreased 5% in the first nine months of 2016 compared to the first nine months 2015 due to a decrease of 3% in organic sales and decrease of 2% from the impact of negative currency translation. The organic sales decline during the third quarter and first nine months of 2016 was primarily due to weakness in oil and gas markets and industrial projects.

Operating margin increased from 11.0% in the third quarter of 2015 to 13.7% in the third quarter of 2016. The increase in operating margin in the third quarter of 2016 was primarily due to savings from restructuring actions, other cost control measures and lower restructuring charges, partially offset by lower sales volumes and unfavorable product mix. Operating margin decreased from 12.9% in the first nine months of 2015 to 12.7% in the first nine months of 2016. The decrease in operating margin in the first nine months of 2016 was primarily due to lower sales volumes and unfavorable product mix, partially offset by savings from restructuring actions and other cost control measures.

Operating margin before acquisition integration charges increased from 11.2% in the third quarter of 2015 to 13.7% in the third quarter of 2016. The increase in operating margin before acquisition integration charges in the third quarter of 2016 was primarily due to an increase in operating margin, partially offset by lower acquisition integration charges. Operating margin before acquisition integration charges decreased from 13.1% in the first nine months of 2015 to 12.7% in the first nine months of 2016. The decrease in operating margin before acquisition integration charges in the first nine months of 2016 was primarily due to a decrease in operating margin and lower acquisition integration charges.

Hydraulics

	Three months ended September 30						Increase (decrease)		Nine months ended September 30						Decrease
	2016			2015					2016			2015
Net sales	$	562		$	599		(6	)%	$	1,702		$	1,907		(11	)%
Operating profit	$	61		$	44		39	%	$	161		$	184		(13	)%
Operating margin	10.9		%	7.3		%			9.5		%	9.6		%
Acquisition integration charges	$	—		$	—				$	—		$	2
Before acquisition integration charges
Operating profit	$	61		$	44		39	%	$	161		$	186		(13	)%
Operating margin	10.9		%	7.3		%			9.5		%	9.8		%

Net sales decreased 6% in the third quarter of 2016 compared to the third quarter of 2015 due to a decrease in organic sales. Net sales decreased 11% for the first nine months of 2016 compared to the first nine months of 2015 due to a decrease of 10% in organic sales and a decrease of 1% from the impact of negative currency translation. The decline in organic sales in the third quarter and first nine months of 2016 were primarily due to continued weakness in both the mobile and industrial markets.

26

Operating margin increased from 7.3% in the third quarter of 2015 to 10.9% in the third quarter of 2016. The increase in operating margin in the third quarter of 2016 was primarily due to savings from restructuring actions, other cost control measures and lower restructuring charges, partially offset by lower sales volumes. Operating margin decreased from 9.6% in the first nine months of 2015 to 9.5% in the first nine months of 2016. The decrease in operating margin in the first nine months of 2016 was primarily due to lower sales volumes and higher restructuring costs, partially offset by savings from restructuring actions and other cost control measures.

Operating margin before acquisition integration charges decreased from 9.8% in the first nine months of 2015 to 9.5% in the first nine months of 2016. The decrease in operating margin in the first nine months of 2016 was primarily due to a decrease in operating margin and lower acquisition integration charges.

Aerospace

	Three months ended September 30						Increase (decrease)		Nine months ended September 30						Increase (decrease)
	2016			2015					2016			2015
Net sales	$	436		$	449		(3	)%	$	1,328		$	1,367		(3	)%
Operating profit	$	88		$	79		11	%	$	251		$	233		8	%
Operating margin	20.2		%	17.6		%			18.9		%	17.0		%

Net sales in the third quarter of 2016 decreased 3% compared to the third quarter of 2015 due to a 3% impact from negative currency translation. Net sales decreased 3% in the first nine months of 2016 compared to the first nine months of 2015 due to a decrease of 2% from the impact of negative currency translation and a decrease of 1% in organic sales. The decline in organic sales in the first nine months of 2016 primarily related to a decrease in military OEM markets, partially offset by growth in commercial markets.

Operating margin increased in the third quarter from 17.6% in 2015 to 20.2% in 2016, and in the first nine months from 17.0% in 2015 to 18.9% in 2016. The increase in operating margin in the third quarter of 2016 was due to savings from restructuring actions, other cost control measures and lower restructuring charges. The increase in operating margin in the first nine months of 2016 was due to savings from restructuring actions, other cost control measures and reduced program development spending.

Vehicle

	Three months ended September 30						Decrease		Nine months ended September 30						Decrease
	2016			2015					2016			2015
Net sales	$	786		$	897		(12	)%	$	2,412		$	2,841		(15	)%
Operating profit	$	122		$	136		(10	)%	$	377		$	490		(23	)%
Operating margin	15.5		%	15.2		%			15.6		%	17.2		%

Net sales decreased 12% in the third quarter of 2016 compared to the third quarter of 2015 due to a 12% decline in organic sales. The decline in organic sales in the third quarter of 2016 was primarily due to weakness in the North American Class 8 truck market. Net sales decreased 15% in the first nine months of 2016 compared to the first nine months of 2015 due to a decrease of 13% in organic sales and a decrease of 2% from the impact of negative currency translation. The decline in organic sales in the first nine months of 2016 was primarily due to the lower North American Class 8 truck market.

Operating margin increased from 15.2% in the third quarter of 2015 to 15.5% in the third quarter of 2016. The increase in the third quarter of 2016 was primarily the result of savings from restructuring actions, other cost control measures, lower restructuring charges and manufacturing efficiencies, partially offset by lower sales volumes and unfavorable product mix. Operating margin decreased from 17.2% in the first nine months of 2015 to 15.6% in the first nine months of 2016. The decrease in the first nine months of 2016 was primarily due to lower sales volumes, partially offset by savings from restructuring actions and lower restructuring charges.

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Corporate Expense

	Three months ended September 30				Decrease		Nine months ended September 30				Decrease
	2016		2015				2016		2015
Amortization of intangible assets	$	99	$	102	(3	)%	$	297	$	306	(3	)%
Interest expense - net	59		59		—	%	173		175		(1	)%
Pension and other postretirement    benefits expense	18		38		(53	)%	45		99		(55	)%
Other corporate expense - net	50		59		(15	)%	164		168		(2	)%
Total corporate expense	$	226	$	258	(12	)%	$	679	$	748	(9	)%

Total corporate expense decreased 12% from $258 in the third quarter of 2015 to $226 in the third quarter of 2016. Total corporate expense decreased 9% from $748 in the first nine months of 2015 to $679 in the first nine months of 2016. The decrease in Total corporate expense for the third quarter and first nine months 2016 was primarily due to a decrease in pension and other postretirement benefits expense resulting from a change to the spot rate approach for measuring service and interest costs, higher discount rates, and updated mortality tables.

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. On October 14, 2016, Eaton refinanced a $750, five-year revolving credit facility with a $750, five-year revolving credit facility that will expire October 14, 2021. Eaton also maintains a $500, four-year revolving credit facility that will expire on October 3, 2018 and a $750, five-year credit facility that will expire October 3, 2019. This refinancing maintains long-term revolving credit facilities at a total of $2,000. There were no borrowings outstanding under these revolving credit facilities at September 30, 2016 or October 14, 2016. Over the course of a year, cash, short-term investments and short-term debt may fluctuate in order to manage global liquidity. Eaton believes its operating flexibility, cash flow, cash and short-term investment balances, and access to capital markets are substantially in excess of the liquidity necessary to meet future operating needs of the business as well as scheduled payments of long-term debt.

On September 20, 2016, a subsidiary of Eaton issued Euro denominated notes (Euro Notes) with a face value of €550 ($615 based on the September 20, 2016 spot rate), in accordance with Regulation S promulgated under the Securities Act of 1933, as amended. The Euro Notes mature in 2024 with interest payable annually at a rate of 0.75%. The issuer received proceeds totaling €544 ($609 based on the September 20, 2016 spot rate) from the issuance, net of financing costs and discounts.

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

Sources and Uses of Cash

Operating Cash Flow

Net cash provided by operating activities was $1,914 in the first nine months of 2016, an increase of $285 in the source of cash compared to $1,629 in the first nine months of 2015. The increase in net cash provided by operating activities in the first nine months of 2016 was driven by lower pension contributions.

Investing Cash Flow

Net cash used in investing activities was $371 in the first nine months of 2016, a decrease of $2 in the use of cash compared to $373 in the first nine months of 2015. The slight decrease was primarily driven by no business acquisitions completed in 2016 and lower capital expenditures in 2016 compared to 2015, offset by purchases of short-term investments of $29 in 2016 compared to sales of $76 in 2015.

Financing Cash Flow

Net cash used in financing activities was $1,325 in the first nine months of 2016, a decrease of $264 in the use of cash compared to $1,589 in the first nine months of 2015. The decrease in the use of cash was due to an increase in proceeds from borrowings, which totaled $633 in 2016, partially offset by an increase of $261 in payments on borrowings and an increase of $113 in share repurchases in 2016 compared to 2015.

28

FORWARD-LOOKING STATEMENTS

This Form 10-Q Report contains forward-looking statements concerning share repurchases, litigation developments, and the charges and benefits of restructuring actions, 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 or unexpected developments in any such pending proceedings; 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, 2015.

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 Craig Arnold - 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 September 30, 2016.

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 third quarter of 2016, 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.

PART II — OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS.

Information regarding the Company's current legal proceedings is presented in Note 8 of the Notes to the Condensed Consolidated Financial Statements.

ITEM 1A. RISK FACTORS.

“Item 1A. Risk Factors” in Eaton's 2015 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 2015 Form 10-K.

29

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

(c) Issuer's Purchases of Equity Securities

During the third quarter of 2016, 3.7 million ordinary shares were repurchased in the open market at a total cost of $243. These shares were repurchased under the program approved by the Board on February 24, 2016. A summary of the shares repurchased in the third quarter of 2016 follows:

Month	Total number of shares purchased	Average price paid per share		Total number of shares purchased as part of publicly announced plans or programs	Approximate dollar value of shares that may yet be purchased under the plans or programs (in millions)
August	2,692,932	$	67.24	2,692,932	$	2,077
September	966,203	$	63.90	966,203	$	2,015
Total	3,659,135	$	66.36	3,659,135

ITEM 6. EXHIBITS.

Exhibits — See Exhibit Index attached.

30

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:	November 1, 2016	By:	/s/ Richard H. Fearon
			Richard H. Fearon
			Principal Financial Officer
			(On behalf of the registrant and as Principal Financial Officer)

31

Eaton Corporation plc

Third Quarter 2016 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)	Articles of Association — Incorporated by reference to the Form 10-Q Report for the three months ended March 31, 2016
3 (iii)	Memorandum of Association — Incorporated by reference to the Form 10-Q Report for the three months ended March 31, 2016
4.1	Indenture dated as of November 20, 2012, among Turlock Corporation, the guarantors named therein and The Bank of New York Mellon Trust Company, N.A., as trustee (incorporated by reference to Exhibit 4.1 of Eaton Corporation plc's Form 8-K Current Report filed on November 26, 2012 (Commission File No. 333-182303))
4.2	Supplemental Indenture No. 1, dated as of November 30, 2012, among Eaton Corporation, the guarantors named therein and The Bank of New York Mellon Trust Company, N.A., as trustee (incorporated by reference to Exhibit 4.2 of the registrant's Form S-4 filed on September 16, 2013)
4.3	Supplemental Indenture No. 2, dated as of January 8, 2013, among Eaton Corporation, the guarantors named therein and The Bank of New York Mellon Trust Company, N.A., as trustee (incorporated by reference Exhibit 4.3 of the registrant's Form S-4 filed on September 16, 2013)
4.4	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 long-term debt other than those set forth in Exhibits 4.1-4.3 hereto
12	Ratio of Earnings to Fixed Charges — Filed in conjunction with this Form 10-Q Report *
31.1	Certification of Principal Executive Officer (Pursuant to Rule 13a-14(a)) — Filed in conjunction with this Form 10-Q Report *
31.2	Certification of Principal Financial Officer (Pursuant to Rule 13a-14(a)) — Filed in conjunction with this Form 10-Q Report *
32.1	Certification of Principal Executive Officer (Pursuant to Rule 13a-14(b) as adopted pursuant to Section 906 of the Sarbanes-Oxley Act) — Filed in conjunction with this Form 10-Q Report *
32.2	Certification of Principal Financial Officer (Pursuant to Rule 13a-14(b) as adopted pursuant to Section 906 of the Sarbanes-Oxley Act) — Filed in conjunction with this Form 10-Q Report *
101.INS	XBRL Instance Document *
101.SCH	XBRL Taxonomy Extension Schema Document *
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document *
101.DEF	XBRL Taxonomy Extension Label Definition Document *
101.LAB	XBRL Taxonomy Extension Label Linkbase Document *
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document *

_______________________________

* Submitted electronically herewith.

Attached as Exhibit 101 to this report are the following formatted in XBRL (Extensible Business Reporting Language): (i) Consolidated Statements of Income for the three months ended September 30, 2016 and 2015, (ii) Consolidated Statements of Comprehensive Income for the three months ended September 30, 2016 and 2015, (iii) Condensed Consolidated Balance Sheets at September 30, 2016 and December 31, 2015, (iv) Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 2016 and 2015 and (v) Notes to Condensed Consolidated Financial Statements for the nine months ended September 30, 2016.

32

EX-12

Eaton Corporation plc

Third Quarter 2016 Report on Form 10-Q

Item 6

Exhibit 12

Ratio of Earnings to Fixed Charges

	Nine months ended September 30			Year ended December 31
(Millions of dollars)	2016			2015			2014			2013		2012			2011
Income from continuing operations before income taxes    and noncontrolling interests in consolidated subsidiaries	$	1,568		$	2,145		$	1,761		$	1,884	$	1,251		$	1,553
Adjustments
(Income) losses of equity investees	(11		)	(11		)	(6		)	2		(2		)	(2		)
Distributed income of equity investees	6			9			4			77		19			3
Interest expensed	178			237			250			290		165			154
Amortization of debt issue costs	6			8			9			10		74			4
Estimated portion of rent expense representing interest	55			75			81			80		66			65
Amortization of capitalized interest	10			10			14			13		12			10
Adjusted income from continuing operations before    income taxes	$	1,812		$	2,473		$	2,113		$	2,356	$	1,585		$	1,787
Fixed charges
Interest expensed	$	178		$	237		$	250		$	290	$	165		$	154
Interest capitalized	9			13			13			11		23			18
Amortization of debt issue costs	6			8			9			10		74			4
Estimated portion of rent expense representing interest	55			75			81			80		66			65
Total fixed charges	$	248		$	333		$	353		$	391	$	328		$	241
Ratio of earnings to fixed charges	7.31			7.43			5.99			6.03		4.83			7.41

EX-31.1

Eaton Corporation plc

Third Quarter 2016 Report on Form 10-Q

Item 6

Exhibit 31.1

Certification

I, Craig Arnold, 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 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:	November 1, 2016	/s/ Craig Arnold
		Craig Arnold
		Principal Executive Officer

EX-31.2

Eaton Corporation plc

Third Quarter 2016 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 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:	November 1, 2016	/s/ Richard H. Fearon
		Richard H. Fearon
		Principal Financial Officer

EX-32.1

Eaton Corporation plc

Third Quarter 2016 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 September 30, 2016 (“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:	November 1, 2016	/s/ Craig Arnold
		Craig Arnold
		Principal Executive Officer

EX-32.2

Eaton Corporation plc

Third Quarter 2016 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 September 30, 2016 (“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:	November 1, 2016	/s/ Richard H. Fearon
		Richard H. Fearon
		Principal Financial Officer

XML

Document and Entity Information Document and Entity Information shares in Millions	9 Months Ended
	Sep. 30, 2016 shares
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	Sep. 30, 2016
Amendment Flag	false
Document Fiscal Year Focus	2016
Document Fiscal Period Focus	Q3
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 (in shares)	451.7

XML

CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Millions, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Income Statement [Abstract]
Net sales	$ 4,987	$ 5,203	$ 14,880	$ 15,798
Cost of products sold	3,371	3,597	10,081	10,865
Selling and administrative expense	853	907	2,642	2,723
Research and development expense	146	156	444	472
Interest expense - net	59	59	173	175
Other income - net	(15)	(3)	(28)	(27)
Income before income taxes	573	487	1,568	1,590
Income tax expense	51	42	151	143
Net income	522	445	1,417	1,447
Less net loss for noncontrolling interests	1	1	1	0
Net income attributable to Eaton ordinary shareholders	$ 523	$ 446	$ 1,418	$ 1,447
Net income per share attributable to Eaton ordinary shareholders
Diluted (usd per share)	$ 1.15	$ 0.96	$ 3.09	$ 3.09
Basic (usd per share)	$ 1.15	$ 0.96	$ 3.10	$ 3.10
Weighted-average number of ordinary shares outstanding
Diluted (shares)	455.6	466.4	457.9	468.5
Basic (shares)	453.9	465.1	456.5	466.8
Cash dividends declared per ordinary share (usd per share)	$ 0.57	$ 0.55	$ 1.71	$ 1.65

XML

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Statement of Comprehensive Income [Abstract]
Net income	$ 522	$ 445	$ 1,417	$ 1,447
Less net loss for noncontrolling interests	1	1	1	0
Net income attributable to Eaton ordinary shareholders	523	446	1,418	1,447
Other comprehensive (loss) income, net of tax
Currency translation and related hedging instruments	(22)	(372)	(57)	(883)
Pensions and other postretirement benefits	45	60	132	164
Cash flow hedges	1	0	(33)	3
Other comprehensive (loss) income attributable to Eaton ordinary shareholders	24	(312)	42	(716)
Total comprehensive income attributable to Eaton ordinary shareholders	$ 547	$ 134	$ 1,460	$ 731

XML

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions	Sep. 30, 2016	Dec. 31, 2015	Sep. 30, 2015	Dec. 31, 2014
Current assets
Cash	$ 494	$ 268	$ 418	$ 781
Short-term investments	213	177
Accounts receivable - net	3,659	3,479
Inventory	2,328	2,323
Prepaid expenses and other current assets	393	369
Total current assets	7,087	6,616
Property, plant and equipment - net	3,506	3,565
Other noncurrent assets
Goodwill	13,434	13,479
Other intangible assets	5,689	6,014
Deferred income taxes	412	362
Other assets	1,109	960
Total assets	31,237	30,996
Current liabilities
Short-term debt	1	426
Current portion of long-term debt	550	242
Accounts payable	1,790	1,758
Accrued compensation	388	366
Other current liabilities	1,866	1,833
Total current liabilities	4,595	4,625
Noncurrent liabilities
Long-term debt	7,881	7,746
Pension liabilities	1,532	1,586
Other postretirement benefits liabilities	429	440
Deferred income taxes	366	390
Other noncurrent liabilities	988	978
Total noncurrent liabilities	11,196	11,140
Shareholders’ equity
Eaton shareholders’ equity	15,404	15,186
Noncontrolling interests	42	45
Total equity	15,446	15,231
Total liabilities and equity	$ 31,237	$ 30,996

XML

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Operating activities
Net income	$ 1,417	$ 1,447
Adjustments to reconcile to net cash provided by operating activities
Depreciation and amortization	700	692
Deferred income taxes	(105)	(101)
Pension and other postretirement benefits expense	177	244
Contributions to pension plans	(114)	(290)
Contributions to other postretirement benefits plans	(26)	(24)
Changes in working capital	(224)	(184)
Other - net	89	(155)
Net cash provided by operating activities	1,914	1,629
Investing activities
Capital expenditures for property, plant and equipment	(346)	(368)
Cash received from (paid for) acquisitions of businesses, net of cash acquired	1	(38)
Sales (purchases) of short-term investments - net	(29)	76
Proceeds from sale of businesses	0	1
Other - net	3	(44)
Net cash used in investing activities	(371)	(373)
Financing activities
Proceeds from borrowings	633	1
Payments on borrowings	(666)	(405)
Cash dividends paid	(780)	(771)
Exercise of employee stock options	60	48
Repurchase of shares	(567)	(454)
Other - net	(5)	(8)
Net cash used in financing activities	(1,325)	(1,589)
Effect of currency on cash	8	(30)
Total increase (decrease) in cash	226	(363)
Cash at the beginning of the period	268	781
Cash at the end of the period	$ 494	$ 418

XML

BASIS OF PRESENTATION

9 Months Ended

Sep. 30, 2016

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 2015 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.

During the first quarter of 2016, the Company adopted Accounting Standards Update 2015-03, Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs (ASU 2015-03). ASU 2015-03 requires that debt issuance costs be presented in the balance sheet as a direct deduction from the related debt liability rather than an asset. The Company has applied this standard retrospectively. The adoption of ASU 2015-03 resulted in the reclassification of $36 and $35 within the Company's Condensed Consolidated Balance Sheets as of September 30, 2016 and December 31, 2015, respectively, from Other noncurrent assets to a reduction in Long-term debt.

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

Recently Issued Accounting Pronouncements

In February 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update 2016-02, Leases (Topic 842), (ASU 2016-02). This accounting standard requires that a lessee recognize a lease asset and a lease liability on its balance sheet for all leases, including operating leases, with a term greater than 12 months. ASU 2016-02 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, 2018. Eaton is evaluating the impact of ASU 2016-02 and an estimate of the impact to the consolidated financial statements cannot be made at this time.

In May 2014, the FASB issued Accounting Standards Update 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 August 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers: Deferral of the Effective Date (ASU 2015-14). This accounting standard defers the effective date of ASU 2014-09 for one year and permits 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.

XML

ACQUISITIONS OF BUSINESSES

9 Months Ended

Sep. 30, 2016

Business Combinations [Abstract]

ACQUISITION OF BUSINESSES

ACQUISITIONS OF BUSINESSES

Acquisition of Ephesus Lighting, Inc.

On October 28, 2015, Eaton acquired Ephesus Lighting, Inc. (Ephesus). Ephesus is a leader in LED lighting for stadiums and other high lumen outdoor and industrial applications. Its sales for the 12 months ended September 30, 2015 were $23. Ephesus is reported within the Electrical Products business segment.

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. Its sales for the 12 months ended December 31, 2014 were $9. Oxalis is reported within the Electrical Systems and Services business segment.

XML

ACQUISITION INTEGRATION CHARGES

9 Months Ended

Sep. 30, 2016

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 September 30				Nine months ended September 30
	2016		2015		2016		2015
Electrical Products	$	1	$	5	$	2	$	17
Electrical Systems and Services	—		3		1		10
Hydraulics	—		—		—		2
Total business segments	1		8		3		29
Corporate	—		2		—		4
Total acquisition integration charges before income taxes	1		10		3		33
Income taxes	—		3		1		11
Total after income taxes	$	1	$	7	$	2	$	22
Per ordinary share - diluted	$	—	$	0.01	$	—	$	0.05

Business segment acquisition integration charges in 2016 related to the integration of Ephesus Lighting, Inc. (Ephesus) and

Oxalis Group Ltd. (Oxalis), which were acquired in 2015. The charges associated with Ephesus were included in Cost of

products sold and Selling and administrative expense, while the charges associated with Oxalis were included in Cost of

products sold. Business segment acquisition integration charges in 2015 related primarily to the integration of Cooper

Industries plc (Cooper), which was acquired in 2012. 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 14 for additional information about business segments.

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

XML

RESTRUCTURING CHARGES

9 Months Ended

Sep. 30, 2016

Restructuring and Related Activities [Abstract]

RESTRUCTURING CHARGES

RESTRUCTURING CHARGES

During 2015, Eaton announced its intention to undertake actions to reduce its cost structure in all business segments and at corporate. Restructuring charges for the three and nine months ended September 30, 2016, were $23 and $121, respectively, and were $113 and $127 for the three and nine months ended September 30, 2015, respectively. The charges associated with restructuring activities are anticipated to be $145 in 2016 and $180 in 2017.

A summary of restructuring charges by type follows:

	Three months ended September 30				Nine months ended September 30
	2016		2015		2016		2015
Workforce reductions	$	18	$	99	$	95	$	111
Plant closings and other	5		14		26		16
Total	$	23	$	113	$	121	$	127

A summary of restructuring charges by segment follows:

	Three months ended September 30					Nine months ended September 30
	2016			2015		2016		2015
Electrical Products	$	1		$	11	$	27	$	12
Electrical Systems & Services	7			26		20		26
Hydraulics	10			25		44		34
Aerospace	(1		)	5		3		5
Vehicle	5			29		22		33
Corporate	1			17		5		17
Total	$	23		$	113	$	121	$	127

A summary of liabilities related to workforce reductions, plant closings and other associated costs follows:

	Workforce reductions			Plant closings and other			Total
Balance at December 31, 2014	$	—		$	—		$	—
Liability recognized	112			17			129
Payments	(59		)	(3		)	(62		)
Other adjustments	1			(14		)	(13		)
Balance at December 31, 2015	54			—			54
Liability recognized	95			26			121
Payments	(89		)	(11		)	(100		)
Other adjustments	(1		)	(14		)	(15		)
Balance at September 30, 2016	$	59		$	1		$	60

These charges were included in Cost of products sold, Selling and administrative expenses or Other income-net, as appropriate. In Business Segment Information, the charges reduced Operating profit of the related business segment. See Note 14 for additional information about business segments.

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GOODWILL

9 Months Ended

Sep. 30, 2016

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, 2015	$	6,642		$	4,279		$	1,259	$	956		$	343	$	13,479
Translation	(24		)	(12		)	2		(13		)	2		(45		)
September 30, 2016	$	6,618		$	4,267		$	1,261	$	943		$	345	$	13,434

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DEBT

9 Months Ended

Sep. 30, 2016

Debt Disclosure [Abstract]

DEBT

DEBT

On September 20, 2016, a subsidiary of Eaton issued Euro denominated notes (Euro Notes) with a face value of €550 ($615 based on the September 20, 2016 spot rate), in accordance with Regulation S promulgated under the Securities Act of 1933, as amended. The Euro Notes mature in 2024 with interest payable annually at a rate of 0.75%. The issuer received proceeds totaling €544 ($609 based on the September 20, 2016 spot rate) from the issuance, net of financing costs and discounts. The senior Euro Notes are fully and unconditionally guaranteed on an unsubordinated, unsecured basis by Eaton and certain of its direct and indirect subsidiaries. The Euro Notes contain an optional redemption provision by which the Company may make an offer to purchase all or any part of the Euro Notes prior to June 20, 2024 at a purchase price of the greater of (a) 100% of the principal amount of the respective Euro Notes being redeemed, or (b) the sum of the present values of the respective remaining scheduled payments of principal and interest, discounted to the redemption date on an annual basis at the benchmark Bund Rate plus 20 basis points. In each case, the redemption price will include any accrued and unpaid interest on the Euro Notes being redeemed. At any time on or after June 20, 2024, the Company may redeem the Euro Notes, in whole or in part, at a redemption price equal to 100% of the principal amount to be redeemed plus accrued and unpaid interest. The Euro Notes also contain a change of control provision which requires the Company to make an offer to purchase all or any part of the Euro Notes at a purchase price of 101% of the principal amount plus accrued and unpaid interest. The capitalized deferred financing fees and discounts are amortized in Interest expense - net over the respective terms of the Euro Notes. The Euro Notes are subject to customary non-financial covenants.

On October 14, 2016, Eaton refinanced a $750, five-year revolving credit facility with a $750, five-year revolving credit facility that will expire October 14, 2021. Eaton also maintains a $500, four-year revolving credit facility that will expire on October 3, 2018 and a $750, five-year credit facility that will expire October 3, 2019. This refinancing maintains long-term revolving credit facilities at a total of $2,000. The revolving credit facilities are used to support commercial paper borrowings and are fully and unconditionally guaranteed by Eaton and certain of its direct and indirect subsidiaries on an unsubordinated, unsecured basis. There were no borrowings outstanding under these revolving credit facilities at September 30, 2016 or October 14, 2016.

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RETIRED BENEFIT PLANS

9 Months Ended

Sep. 30, 2016

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 September 30
	2016			2015			2016			2015			2016			2015
Service cost	$	28		$	31		$	16		$	18		$	1		$	2
Interest cost	31			39			16			18			4			6
Expected return on plan assets	(63		)	(65		)	(23		)	(25		)	(2		)	(2		)
Amortization	23			29			8			10			(2		)	—
	19			34			17			21			1			6
Settlements	24			25			—			—			—			—
Total expense	$	43		$	59		$	17		$	21		$	1		$	6

	United States pension benefit expense						Non-United States pension benefit expense						Other postretirement benefits expense
	Nine months ended September 30
	2016			2015			2016			2015			2016			2015
Service cost	$	83		$	92		$	49		$	55		$	3		$	5
Interest cost	94			117			48			54			13			18
Expected return on plan assets	(188		)	(196		)	(71		)	(75		)	(5		)	(4		)
Amortization	69			89			25			30			(6		)	1
	58			102			51			64			5			20
Settlements and curtailments	63			58			—			—			—			—
Total expense	$	121		$	160		$	51		$	64		$	5		$	20

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LEGAL CONTINGENCIES

9 Months Ended

Sep. 30, 2016

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. Insurance may cover some of the 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 December 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. The judgment was based on an alleged violation of an agency agreement between Raysul and Saturnia. At March 31, 2016, the Company had a total accrual of 100 Brazilian Reais related to this matter ($31 based on June 2016 exchange rates). In June 2016, Eaton signed a settlement agreement and resolved the matter, which did not have a material impact on the consolidated financial statements.

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INCOME TAXES

9 Months Ended

Sep. 30, 2016

Income Tax Disclosure [Abstract]

INCOME TAXES

INCOME TAXES

The effective income tax rate for the third quarter and first nine months of 2016 was expense of 9%, and 10%, respectively, compared to an expense of 9% for the third quarter and first nine months of 2015. The increase in the effective tax rate in the first nine months of 2016 was primarily due to more income earned in higher tax jurisdictions.

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EQUITY

9 Months Ended

Sep. 30, 2016

Stockholders' Equity Note [Abstract]

EQUITY

EQUITY

On October 22, 2013, Eaton's Board of Directors adopted a share repurchase program (2013 Program) that authorizes the repurchase of 40 million ordinary shares. During the first quarter of 2016, 1.5 million ordinary shares were repurchased under the 2013 Program in the open market at a total cost of $82. During the three and nine months ended September 30, 2015, 4.8 million and 7.2 million ordinary shares were repurchased under the 2013 Program in the open market at a total cost of $284 and $454, respectively. On February 24, 2016, the Board of Directors approved a new share repurchase program for share repurchases up to $2,500 of ordinary shares (2016 Program). Under the 2016 Program, the ordinary shares are expected to be repurchased over time, depending on market conditions, the market price of ordinary shares, capital levels, and other considerations. During the three and nine months ended September 30, 2016, 3.7 million and 7.7 million ordinary shares, respectively, were purchased on the open market under the 2016 Program for a total cost of $243 and $485, respectively.

The changes in Shareholders’ equity follow:

	Eaton shareholders’ equity			Noncontrolling interests			Total equity
Balance at December 31, 2015	$	15,186		$	45		$	15,231
Net income (loss)	1,418			(1		)	1,417
Other comprehensive income	42			—			42
Cash dividends paid	(780		)	(2		)	(782		)
Issuance of shares under equity-based compensation plans - net	105			—			105
Repurchase of shares	(567		)	—			(567		)
Balance at September 30, 2016	$	15,404		$	42		$	15,446

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, 2015	$	(2,492	)	$	(1,374	)	$	3		$	(3,863	)
Other comprehensive (loss) income    before reclassifications	(57		)	33			(35		)	(59		)
Amounts reclassified from Accumulated other    comprehensive loss (income)	—			99			2			101
Net current-period Other comprehensive    income (loss)	(57		)	132			(33		)	42
Balance at September 30, 2016	$	(2,549	)	$	(1,242	)	$	(30	)	$	(3,821	)

The reclassifications out of Accumulated other comprehensive loss follow:

	Nine months ended September 30, 2016				Consolidated statements of income classification
Amortization of defined benefit pensions and other postretirement benefits items
Actuarial loss and prior service cost	$	(151	)	1
Tax benefit	52
Total, net of tax	(99		)
Gains and (losses) on cash flow hedges
Currency exchange contracts	(3		)		Cost of products sold
Tax benefit	1
Total, net of tax	(2		)
Total reclassifications for the period	$	(101	)

¹ These components of Accumulated other comprehensive loss are included in the computation of net periodic benefit cost. See Note 7 for additional information about pension and other postretirement benefits items.

Net Income Per Share Attributable to Eaton Ordinary Shareholders

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

	Three months ended September 30				Nine months ended September 30
(Shares in millions)	2016		2015		2016		2015
Net income attributable to Eaton ordinary shareholders	$	523	$	446	$	1,418	$	1,447
Weighted-average number of ordinary shares outstanding - diluted	455.6		466.4		457.9		468.5
Less dilutive effect of equity-based compensation	1.7		1.3		1.4		1.7
Weighted-average number of ordinary shares outstanding - basic	453.9		465.1		456.5		466.8
Net income per share attributable to Eaton ordinary shareholders
Diluted	$	1.15	$	0.96	$	3.09	$	3.09
Basic	1.15		0.96		3.10		3.10

For the third quarter and first nine months of 2016, 1.5 million and 1.8 million stock options, respectively, were excluded from the calculation of diluted net income per share attributable to Eaton ordinary shareholders 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 third quarter and first nine months of 2015, 1.8 million and 1.3 million stock options, respectively, were excluded from the calculation of diluted net income per share attributable to Eaton ordinary shareholders because the exercise price of the options exceeded the average market price of the ordinary shares during the periods and their effect, accordingly, would have been antidilutive.

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FAIR VALUE MEASUREMENTS

9 Months Ended

Sep. 30, 2016

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
September 30, 2016
Cash	$	494		$	494	$	—		$	—
Short-term investments	213			213		—			—
Net derivative contracts	148			—		148			—
Long-term debt converted to floating interest rates by    interest rate swaps - net	(172		)	—		(172		)	—
December 31, 2015
Cash	$	268		$	268	$	—		$	—
Short-term investments	177			177		—			—
Net derivative contracts	86			—		86			—
Long-term debt converted to floating interest rates by    interest rate swaps - net	(94		)	—		(94		)	—

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 $8,431 and fair value of $9,050 at September 30, 2016 compared to $7,988 and $8,231, respectively, at December 31, 2015. 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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DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES

9 Months Ended

Sep. 30, 2016

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 as non-derivative net investment hedging instruments on an after-tax basis was $99 at September 30, 2016 and $83 at December 31, 2015, and designated on a pre-tax basis was $607 at September 30, 2016.

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
September 30, 2016
Derivatives designated as hedges
Fixed-to-floating interest rate  swaps	$	3,765	$	—	$	172	$	—	$	—	Fair value	1 month to 19 years
Forward starting floating-to-fixed  interest rate swaps	450		—		—		—		18		Cash flow	12 years
Currency exchange contracts	826		5		1		19		14		Cash flow	1 to 36 months
Total			$	5	$	173	$	19	$	32
Derivatives not designated as  hedges
Currency exchange contracts	$	3,991	$	34	$	—	$	15	$	—		1 to 24 months
Commodity contracts	41		2				—					1 to 12 months
Total			$	36	$	—	$	15	$	—
December 31, 2015
Derivatives designated as hedges
Fixed-to-floating interest rate  swaps	$	3,715	$	—	$	96	$	—	$	2	Fair value	2 to 19 years
Forward starting floating-to-fixed  interest rate swaps	50		—		—		—		—		Cash flow	12 years
Currency exchange contracts	724		18		1		8		6		Cash flow	1 to 36 months
Commodity contracts	1		—		—		—		—		Cash flow	1 to 12 months
Total			$	18	$	97	$	8	$	8
Derivatives not designated as  hedges
Currency exchange contracts	$	4,198	$	27			$	40				1 to 12 months
Total			$	27			$	40

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.

The impact of derivative instruments to the Consolidated Statement of Income and Comprehensive Income follow:

	Gain (loss) recognized in other comprehensive (loss) income					Location of gain (loss) reclassified from Accumulated other comprehensive loss	Gain (loss) reclassified from Accumulated other comprehensive loss
	Three months ended September 30						Three months ended September 30
	2016			2015			2016			2015
Derivatives designated as    cash flow hedges
Forward starting floating-to-fixed  interest rate swaps	$	1		$	—	Interest expense - net	$	—		$	—
Currency exchange contracts	(3		)	6		Cost of products sold	(4		)	5
Total	$	(2	)	$	6		$	(4	)	$	5

	Gain (loss) recognized in other comprehensive (loss) income					Location of gain (loss) reclassified from Accumulated other comprehensive loss	Gain (loss) reclassified from Accumulated other comprehensive loss
	Nine months ended September 30						Nine months ended September 30
	2016			2015			2016			2015
Derivatives designated as cash    flow hedges
Forward starting floating-to-fixed  interest rate swaps	$	(18	)	$	—	Interest expense - net	$	—		$	—
Currency exchange contracts	(35		)	16		Cost of products sold	(3		)	11
Total	$	(53	)	$	16		$	(3	)	$	11

Amounts recognized in net income follow:

	Three months ended September 30						Nine months ended September 30
	2016			2015			2016			2015
Derivatives designated as fair value hedges
Fixed-to-floating interest rate swaps	$	(28	)	$	65		$	78		$	62
Related long-term debt converted to floating interest    rates by interest rate swaps	28			(65		)	(78		)	(62		)
	$	—		$	—		$	—		$	—

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

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INVENTORY

9 Months Ended

Sep. 30, 2016

Inventory Disclosure [Abstract]

INVENTORY

INVENTORY

The components of inventory follow:

	September 30, 2016			December 31, 2015
Raw materials	$	910		$	885
Work-in-process	431			412
Finished goods	1,083			1,131
Inventory at FIFO	2,424			2,428
Excess of FIFO over LIFO cost	(96		)	(105		)
Total inventory	$	2,328		$	2,323

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BUSINESS SEGMENT INFORMATION

9 Months Ended

Sep. 30, 2016

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 15 to the Consolidated Financial Statements contained in the 2015 Form 10-K.

	Three months ended September 30						Nine months ended September 30
	2016			2015			2016			2015
Net sales
Electrical Products	$	1,767		$	1,771		$	5,231		$	5,246
Electrical Systems and Services	1,436			1,487			4,207			4,437
Hydraulics	562			599			1,702			1,907
Aerospace	436			449			1,328			1,367
Vehicle	786			897			2,412			2,841
Total net sales	$	4,987		$	5,203		$	14,880		$	15,798
Segment operating profit
Electrical Products	$	331		$	322		$	924		$	858
Electrical Systems and Services	197			164			534			573
Hydraulics	61			44			161			184
Aerospace	88			79			251			233
Vehicle	122			136			377			490
Total segment operating profit	799			745			2,247			2,338
Corporate
Amortization of intangible assets	(99		)	(102		)	(297		)	(306		)
Interest expense - net	(59		)	(59		)	(173		)	(175		)
Pension and other postretirement benefits expense	(18		)	(38		)	(45		)	(99		)
Other corporate expense - net	(50		)	(59		)	(164		)	(168		)
Income before income taxes	573			487			1,568			1,590
Income tax expense	51			42			151			143
Net income	522			445			1,417			1,447
Less net loss for noncontrolling interests	1			1			1			—
Net income attributable to Eaton ordinary shareholders	$	523		$	446		$	1,418		$	1,447

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CONDENSED CONSOLIDATING FINANCIAL STATEMENTS

9 Months Ended

Sep. 30, 2016

Condensed Consolidating Financial Information [Abstract]

CONDENSED CONSOLIDATING FINANCIAL STATEMENTS

CONDENSED CONSOLIDATING FINANCIAL STATEMENTS

On November 14, 2013, Eaton Corporation registered senior notes 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 2015 and 2016, 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 SEPTEMBER 30, 2016
	Eaton Corporation plc			Eaton Corporation			Guarantors			Other subsidiaries			Consolidating adjustments			Total
Net sales	$	—		$	1,660		$	1,583		$	3,040		$	(1,296	)	$	4,987
Cost of products sold	—			1,329			1,162			2,173			(1,293		)	3,371
Selling and administrative expense	2			330			197			324			—			853
Research and development expense	—			59			43			44			—			146
Interest expense (income) - net	—			59			4			(3		)	(1		)	59
Other expense (income) - net	(1		)	18			—			(32		)	—			(15		)
Equity in loss (earnings) of    subsidiaries, net of tax	(628		)	(173		)	(895		)	(219		)	1,915			—
Intercompany expense (income) - net	104			(47		)	336			(393		)	—			—
Income (loss) before income taxes	523			85			736			1,146			(1,917		)	573
Income tax expense (benefit)	—			(11		)	10			53			(1		)	51
Net income (loss)	523			96			726			1,093			(1,916		)	522
Less net loss (income) for    noncontrolling interests	—			—			—			—			1			1
Net income (loss) attributable to    Eaton ordinary shareholders	$	523		$	96		$	726		$	1,093		$	(1,915	)	$	523
Other comprehensive income (loss)	$	24		$	24		$	29		$	2		$	(55	)	$	24
Total comprehensive income   (loss) attributable to Eaton   ordinary shareholders	$	547		$	120		$	755		$	1,095		$	(1,970	)	$	547

CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2015
	Eaton Corporation plc			Eaton Corporation			Guarantors			Other subsidiaries			Consolidating adjustments			Total
Net sales	$	—		$	1,755		$	1,664		$	3,105		$	(1,321	)	$	5,203
Cost of products sold	—			1,380			1,269			2,265			(1,317		)	3,597
Selling and administrative expense	2			375			191			339			—			907
Research and development expense	—			65			51			40			—			156
Interest expense (income) - net	—			54			5			(3		)	3			59
Other expense (income) - net	—			11			3			(17		)	—			(3		)
Equity in loss (earnings) of    subsidiaries, net of tax	(534		)	(264		)	(888		)	(64		)	1,750			—
Intercompany expense (income) - net	86			(54		)	258			(290		)	—			—
Income (loss) before income taxes	446			188			775			835			(1,757		)	487
Income tax expense (benefit)				17			(15		)	38			2			42
Net income (loss)	446			171			790			797			(1,759		)	445
Less net loss (income) for    noncontrolling interests	—			—			—			1			—			1
Net income (loss) attributable to    Eaton ordinary shareholders	$	446		$	171		$	790		$	798		$	(1,759	)	$	446
Other comprehensive income (loss)	$	(312	)	$	(24	)	$	(305	)	$	(411	)	$	740		$	(312	)
Total comprehensive income    (loss) attributable to Eaton    ordinary shareholders	$	134		$	147		$	485		$	387		$	(1,019	)	$	134

CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2016
	Eaton Corporation plc			Eaton Corporation			Guarantors			Other subsidiaries			Consolidating adjustments			Total
Net sales	$	—		$	4,842		$	4,793		$	8,983		$	(3,738	)	$	14,880
Cost of products sold	—			3,788			3,554			6,478			(3,739		)	10,081
Selling and administrative expense	6			1,048			583			1,005			—			2,642
Research and development expense	—			176			138			130			—			444
Interest expense (income) - net	—			169			13			(13		)	4			173
Other expense (income) - net	(1		)	34			(3		)	(58		)	—			(28		)
Equity in loss (earnings) of    subsidiaries, net of tax	(1,726		)	(495		)	(2,384		)	(434		)	5,039			—
Intercompany expense (income) - net	303			(135		)	913			(1,081		)	—			—
Income (loss) before income taxes	1,418			257			1,979			2,956			(5,042		)	1,568
Income tax expense (benefit)	—			9			24			119			(1		)	151
Net income (loss)	1,418			248			1,955			2,837			(5,041		)	1,417
Less net loss (income) for    noncontrolling interests	—			—			—			(2		)	3			1
Net income (loss) attributable to    Eaton ordinary shareholders	$	1,418		$	248		$	1,955		$	2,835		$	(5,038	)	$	1,418
Other comprehensive income (loss)	$	42		$	68		$	54		$	(21	)	$	(101	)	$	42
Total comprehensive income    (loss) attributable to Eaton    ordinary shareholders	$	1,460		$	316		$	2,009		$	2,814		$	(5,139	)	$	1,460

CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2015
	Eaton Corporation plc			Eaton Corporation			Guarantors			Other subsidiaries			Consolidating adjustments			Total
Net sales	$	—		$	5,263		$	5,065		$	9,469		$	(3,999	)	$	15,798
Cost of products sold	—			4,123			3,837			6,864			(3,959		)	10,865
Selling and administrative expense	6			1,120			539			1,058			—			2,723
Research and development expense	—			202			145			125			—			472
Interest expense (income) - net	—			166			16			(10		)	3			175
Other expense (income) - net	—			17			(5		)	(39		)	—			(27		)
Equity in loss (earnings) of    subsidiaries, net of tax	(1,698		)	(529		)	(2,403		)	(315		)	4,945			—
Intercompany expense (income) - net	245			(362		)	1,010			(893		)	—			—
Income (loss) before income taxes	1,447			526			1,926			2,679			(4,988		)	1,590
Income tax expense (benefit)	—			36			(32		)	154			(15		)	143
Net income (loss)	1,447			490			1,958			2,525			(4,973		)	1,447
Less net loss (income) for    noncontrolling interests	—			—			—			(1		)	1			—
Net income (loss) attributable to    Eaton ordinary shareholders	$	1,447		$	490		$	1,958		$	2,524		$	(4,972	)	$	1,447
Other comprehensive income (loss)	$	(716	)	$	39		$	(691	)	$	(875	)	$	1,527		$	(716	)
Total comprehensive income (loss) attributable to Eaton ordinary shareholders	$	731		$	529		$	1,267		$	1,649		$	(3,445	)	$	731

CONDENSED CONSOLIDATING BALANCE SHEETS SEPTEMBER 30, 2016
	Eaton Corporation plc		Eaton Corporation		Guarantors		Other subsidiaries		Consolidating adjustments			Total
Assets
Current assets
Cash	$	1	$	70	$	4	$	419	$	—		$	494
Short-term investments	—		—		—		213		—			213
Accounts receivable - net	—		510		1,072		2,077		—			3,659
Intercompany accounts    receivable	2		637		4,149		3,484		(8,272		)	—
Inventory	—		365		647		1,395		(79		)	2,328
Prepaid expenses and    other current assets	—		107		40		219		27			393
Total current assets	3		1,689		5,912		7,807		(8,324		)	7,087
Property, plant and    equipment - net	—		863		712		1,931		—			3,506
Other noncurrent assets
Goodwill	—		1,355		6,264		5,815		—			13,434
Other intangible assets	—		172		3,481		2,036		—			5,689
Deferred income taxes	—		987		—		231		(806		)	412
Investment in subsidiaries	32,690		13,491		72,562		12,194		(130,937		)	—
Intercompany loans receivable	—		7,614		2,182		56,101		(65,897		)	—
Other assets	—		603		129		377		—			1,109
Total assets	$	32,693	$	26,774	$	91,242	$	86,492	$	(205,964	)	$	31,237
Liabilities and    shareholders’ equity
Current liabilities
Short-term debt	$	—	$	—	$	—	$	1	$	—		$	1
Current portion of    long-term debt	—		251		299		—		—			550
Accounts payable	—		415		259		1,116		—			1,790
Intercompany accounts payable	194		3,966		2,982		1,130		(8,272		)	—
Accrued compensation	—		85		51		252		—			388
Other current liabilities	1		630		297		939		(1		)	1,866
Total current liabilities	195		5,347		3,888		3,438		(8,273		)	4,595
Noncurrent liabilities
Long-term debt	—		6,889		971		16		5			7,881
Pension liabilities	—		605		168		759		—			1,532
Other postretirement    benefits liabilities	—		237		114		78		—			429
Deferred income taxes	—		—		771		401		(806		)	366
Intercompany loans payable	17,094		2,377		44,900		1,526		(65,897		)	—
Other noncurrent liabilities	—		344		214		430		—			988
Total noncurrent liabilities	17,094		10,452		47,138		3,210		(66,698		)	11,196
Shareholders’ equity
Eaton shareholders' equity	15,404		10,975		40,216		79,807		(130,998		)	15,404
Noncontrolling interests	—		—		—		37		5			42
Total equity	15,404		10,975		40,216		79,844		(130,993		)	15,446
Total liabilities and equity	$	32,693	$	26,774	$	91,242	$	86,492	$	(205,964	)	$	31,237

CONDENSED CONSOLIDATING BALANCE SHEETS DECEMBER 31, 2015
	Eaton Corporation plc		Eaton Corporation		Guarantors		Other subsidiaries		Consolidating adjustments			Total
Assets
Current assets
Cash	$	—	$	26	$	7	$	235	$	—		$	268
Short-term investments	—		—		2		175		—			177
Accounts receivable - net	—		512		1,030		1,937		—			3,479
Intercompany accounts    receivable	1		842		3,888		2,928		(7,659		)	—
Inventory	—		357		651		1,395		(80		)	2,323
Prepaid expenses and    other current assets	—		77		40		229		23			369
Total current assets	1		1,814		5,618		6,899		(7,716		)	6,616
Property, plant and    equipment - net	—		930		750		1,885		—			3,565
Other noncurrent assets
Goodwill	—		1,355		6,264		5,860		—			13,479
Other intangible assets	—		182		3,624		2,208		—			6,014
Deferred income taxes	—		1,016		—		218		(872		)	362
Investment in subsidiaries	29,627		12,883		60,139		10,046		(112,695		)	—
Intercompany loans receivable	—		8,641		1,573		44,835		(55,049		)	—
Other assets	—		492		122		346		—			960
Total assets	$	29,628	$	27,313	$	78,090	$	72,297	$	(176,332	)	$	30,996
Liabilities and    shareholders’ equity
Current liabilities
Short-term debt	$	—	$	408	$	—	$	18	$	—		$	426
Current portion of    long-term debt	—		1		240		1		—			242
Accounts payable	—		392		260		1,106		—			1,758
Intercompany accounts payable	219		4,009		2,248		1,183		(7,659		)	—
Accrued compensation	—		77		53		236		—			366
Other current liabilities	1		644		318		875		(5		)	1,833
Total current liabilities	220		5,531		3,119		3,419		(7,664		)	4,625
Noncurrent liabilities
Long-term debt	—		7,053		675		17		1			7,746
Pension liabilities	—		639		165		782		—			1,586
Other postretirement    benefits liabilities	—		245		118		77		—			440
Deferred income taxes	—		—		815		447		(872		)	390
Intercompany loans payable	14,222		2,962		36,432		1,433		(55,049		)	—
Other noncurrent liabilities	—		346		200		432		—			978
Total noncurrent liabilities	14,222		11,245		38,405		3,188		(55,920		)	11,140
Shareholders’ equity
Eaton shareholders' equity	15,186		10,537		36,566		65,653		(112,756		)	15,186
Noncontrolling interests	—		—		—		37		8			45
Total equity	15,186		10,537		36,566		65,690		(112,748		)	15,231
Total liabilities and equity	$	29,628	$	27,313	$	78,090	$	72,297	$	(176,332	)	$	30,996

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2016
	Eaton Corporation plc			Eaton Corporation			Guarantors			Other subsidiaries			Consolidating adjustments			Total
Net cash provided by (used in)    operating activities	$	(158	)	$	(29	)	$	(283	)	$	2,384		$	—		$	1,914
Investing activities
Capital expenditures for property,    plant and equipment	—			(62		)	(75		)	(209		)	—			(346		)
Cash received from (paid for) acquisitions of businesses, net of cash acquired	—			—			1			—			—			1
Sales (purchases) of short-term investments - net	—			—			2			(31		)	—			(29		)
Investments in affiliates	(1,250		)	—			(120		)	(1,370		)	2,740			—
Return of investments in affiliates	—			—			47			—			(47		)	—
Loans to affiliates	—			(287		)	(655		)	(6,457		)	7,399			—
Repayments of loans from affiliates	—			1,288			—			4,501			(5,789		)	—
Other - net	—			—			30			(27		)	—			3
Net cash provided by (used in) investing activities	(1,250		)	939			(770		)	(3,593		)	4,303			(371		)
Financing activities
Proceeds from borrowings	—			22			611			—			—			633
Payments on borrowings	—			(408		)	(240		)	(18		)	—			(666		)
Proceeds from borrowings from    affiliates	3,333			2,815			1,051			200			(7,399		)	—
Payments on borrowings from    affiliates	(637		)	(3,453		)	(1,658		)	(41		)	5,789			—
Capital contributions from affiliates	—			—			1,370			1,370			(2,740		)	—
Return of capital to affiliates	—			—			—			(47		)	47			—
Other intercompany financing    activities	—			158			(81		)	(77		)	—			—
Cash dividends paid	(780		)	—			—			—			—			(780		)
Exercise of employee stock options	60			—			—			—			—			60
Repurchase of shares	(567		)	—			—			—			—			(567		)
Excess tax benefit from    equity-based compensation	—			—			—			—			—			—
Other - net	—			—			(3		)	(2		)	—			(5		)
Net cash provided by (used in)    financing activities	1,409			(866		)	1,050			1,385			(4,303		)	(1,325		)
Effect of currency on cash	—			—			—			8			—			8
Total increase (decrease) in cash	1			44			(3		)	184			—			226
Cash at the beginning of the period	—			26			7			235			—			268
Cash at the end of the period	$	1		$	70		$	4		$	419		$	—		$	494

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2015
	Eaton Corporation plc			Eaton Corporation			Guarantors			Other subsidiaries			Consolidating adjustments			Total
Net cash provided by (used in)    operating activities	$	(85	)	$	(93	)	$	(23	)	$	1,830		$	—		$	1,629
Investing activities
Capital expenditures for property,    plant and equipment	—			(68		)	(100		)	(200		)	—			(368		)
Cash received from (paid for) acquisitions of businesses, net of cash acquired	—			—			—			(38		)	—			(38		)
Sales (purchases) of short-term investments - net	—			—			—			76			—			76
Investments in affiliates	(1,482		)	—			(1,176		)	(1,482		)	4,140			—
Loans to affiliates	—			(307		)	(39		)	(7,638		)	7,984			—
Repayments of loans from affiliates	—			306			58			5,514			(5,878		)	—
Proceeds from sale of businesses	—			—			—			1			—			1
Other - net	—			(41		)	33			(36		)	—			(44		)
Net cash provided by (used in)    investing activities	(1,482		)	(110		)	(1,224		)	(3,803		)	6,246			(373		)
Financing activities
Proceeds from borrowings	—			—			—			1			—			1
Payments on borrowings	—			(102		)	(301		)	(2		)	—			(405		)
Proceeds from borrowings from    affiliates	2,783			4,577			581			43			(7,984		)	—
Payments on borrowings from    affiliates	(40		)	(4,617		)	(1,160		)	(61		)	5,878			—
Capital contributions from affiliates	—			1,176			1,482			1,482			(4,140		)	—
Other intercompany financing activities	—			(859		)	644			215			—			—
Cash dividends paid	(771		)	—			—			—			—			(771		)
Exercise of employee stock options	48			—			—			—			—			48
Repurchase of shares	(454		)	—			—			—			—			(454		)
Other - net	—			—			—			(8		)	—			(8		)
Net cash provided by (used in)    financing activities	1,566			175			1,246			1,670			(6,246		)	(1,589		)
Effect of currency on cash	—			—			—			(30		)	—			(30		)
Total increase (decrease) in cash	(1		)	(28		)	(1		)	(333		)	—			(363		)
Cash at the beginning of the period	1			173			13			594			—			781
Cash at the end of the period	$	—		$	145		$	12		$	261		$	—		$	418

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BASIS OF PRESENTATION (Policies)

9 Months Ended

Sep. 30, 2016

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Accounting

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 2015 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

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

Recently Issued Accounting Pronouncements

Recently Issued Accounting Pronouncements

In February 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update 2016-02, Leases (Topic 842), (ASU 2016-02). This accounting standard requires that a lessee recognize a lease asset and a lease liability on its balance sheet for all leases, including operating leases, with a term greater than 12 months. ASU 2016-02 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, 2018. Eaton is evaluating the impact of ASU 2016-02 and an estimate of the impact to the consolidated financial statements cannot be made at this time.

In May 2014, the FASB issued Accounting Standards Update 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 August 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers: Deferral of the Effective Date (ASU 2015-14). This accounting standard defers the effective date of ASU 2014-09 for one year and permits 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.

During the first quarter of 2016, the Company adopted Accounting Standards Update 2015-03, Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs (ASU 2015-03). ASU 2015-03 requires that debt issuance costs be presented in the balance sheet as a direct deduction from the related debt liability rather than an asset. The Company has applied this standard retrospectively. The adoption of ASU 2015-03 resulted in the reclassification of $36 and $35 within the Company's Condensed Consolidated Balance Sheets as of September 30, 2016 and December 31, 2015, respectively, from Other noncurrent assets to a reduction in Long-term debt.

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ACQUISITION INTEGRATION CHARGES (Tables)

9 Months Ended

Sep. 30, 2016

Acquisitions Integration Charges [Abstract]

Acquisition Integration Charges

A summary of these charges follows:

	Three months ended September 30				Nine months ended September 30
	2016		2015		2016		2015
Electrical Products	$	1	$	5	$	2	$	17
Electrical Systems and Services	—		3		1		10
Hydraulics	—		—		—		2
Total business segments	1		8		3		29
Corporate	—		2		—		4
Total acquisition integration charges before income taxes	1		10		3		33
Income taxes	—		3		1		11
Total after income taxes	$	1	$	7	$	2	$	22
Per ordinary share - diluted	$	—	$	0.01	$	—	$	0.05

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RESTRUCTURING CHARGES (Tables)

9 Months Ended

Sep. 30, 2016

Restructuring and Related Activities [Abstract]

Restructuring Charges by Type

A summary of restructuring charges by type follows:

	Three months ended September 30				Nine months ended September 30
	2016		2015		2016		2015
Workforce reductions	$	18	$	99	$	95	$	111
Plant closings and other	5		14		26		16
Total	$	23	$	113	$	121	$	127

Restructuring Charges by Segment

A summary of restructuring charges by segment follows:

	Three months ended September 30					Nine months ended September 30
	2016			2015		2016		2015
Electrical Products	$	1		$	11	$	27	$	12
Electrical Systems & Services	7			26		20		26
Hydraulics	10			25		44		34
Aerospace	(1		)	5		3		5
Vehicle	5			29		22		33
Corporate	1			17		5		17
Total	$	23		$	113	$	121	$	127

Restructuring Liability Rollforward

A summary of liabilities related to workforce reductions, plant closings and other associated costs follows:

	Workforce reductions			Plant closings and other			Total
Balance at December 31, 2014	$	—		$	—		$	—
Liability recognized	112			17			129
Payments	(59		)	(3		)	(62		)
Other adjustments	1			(14		)	(13		)
Balance at December 31, 2015	54			—			54
Liability recognized	95			26			121
Payments	(89		)	(11		)	(100		)
Other adjustments	(1		)	(14		)	(15		)
Balance at September 30, 2016	$	59		$	1		$	60

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GOODWILL (Tables)

9 Months Ended

Sep. 30, 2016

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, 2015	$	6,642		$	4,279		$	1,259	$	956		$	343	$	13,479
Translation	(24		)	(12		)	2		(13		)	2		(45		)
September 30, 2016	$	6,618		$	4,267		$	1,261	$	943		$	345	$	13,434

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RETIRED BENEFIT PLANS (Tables)

9 Months Ended

Sep. 30, 2016

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 September 30
	2016			2015			2016			2015			2016			2015
Service cost	$	28		$	31		$	16		$	18		$	1		$	2
Interest cost	31			39			16			18			4			6
Expected return on plan assets	(63		)	(65		)	(23		)	(25		)	(2		)	(2		)
Amortization	23			29			8			10			(2		)	—
	19			34			17			21			1			6
Settlements	24			25			—			—			—			—
Total expense	$	43		$	59		$	17		$	21		$	1		$	6

	United States pension benefit expense						Non-United States pension benefit expense						Other postretirement benefits expense
	Nine months ended September 30
	2016			2015			2016			2015			2016			2015
Service cost	$	83		$	92		$	49		$	55		$	3		$	5
Interest cost	94			117			48			54			13			18
Expected return on plan assets	(188		)	(196		)	(71		)	(75		)	(5		)	(4		)
Amortization	69			89			25			30			(6		)	1
	58			102			51			64			5			20
Settlements and curtailments	63			58			—			—			—			—
Total expense	$	121		$	160		$	51		$	64		$	5		$	20

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EQUITY (Tables)

9 Months Ended

Sep. 30, 2016

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, 2015	$	15,186		$	45		$	15,231
Net income (loss)	1,418			(1		)	1,417
Other comprehensive income	42			—			42
Cash dividends paid	(780		)	(2		)	(782		)
Issuance of shares under equity-based compensation plans - net	105			—			105
Repurchase of shares	(567		)	—			(567		)
Balance at September 30, 2016	$	15,404		$	42		$	15,446

Schedule of Accumulated Other Comprehensive Loss

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, 2015	$	(2,492	)	$	(1,374	)	$	3		$	(3,863	)
Other comprehensive (loss) income    before reclassifications	(57		)	33			(35		)	(59		)
Amounts reclassified from Accumulated other    comprehensive loss (income)	—			99			2			101
Net current-period Other comprehensive    income (loss)	(57		)	132			(33		)	42
Balance at September 30, 2016	$	(2,549	)	$	(1,242	)	$	(30	)	$	(3,821	)

Reclassification Out of Accumulated Other Comprehensive Loss

The reclassifications out of Accumulated other comprehensive loss follow:

	Nine months ended September 30, 2016				Consolidated statements of income classification
Amortization of defined benefit pensions and other postretirement benefits items
Actuarial loss and prior service cost	$	(151	)	1
Tax benefit	52
Total, net of tax	(99		)
Gains and (losses) on cash flow hedges
Currency exchange contracts	(3		)		Cost of products sold
Tax benefit	1
Total, net of tax	(2		)
Total reclassifications for the period	$	(101	)

¹ These components of Accumulated other comprehensive loss are included in the computation of net periodic benefit cost. See Note 7 for additional information about pension and other postretirement benefits items.

Calculation of Net Income Per Ordinary Share Attributable to Shareholders

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

	Three months ended September 30				Nine months ended September 30
(Shares in millions)	2016		2015		2016		2015
Net income attributable to Eaton ordinary shareholders	$	523	$	446	$	1,418	$	1,447
Weighted-average number of ordinary shares outstanding - diluted	455.6		466.4		457.9		468.5
Less dilutive effect of equity-based compensation	1.7		1.3		1.4		1.7
Weighted-average number of ordinary shares outstanding - basic	453.9		465.1		456.5		466.8
Net income per share attributable to Eaton ordinary shareholders
Diluted	$	1.15	$	0.96	$	3.09	$	3.09
Basic	1.15		0.96		3.10		3.10

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FAIR VALUE MEASUREMENTS (Tables)

9 Months Ended

Sep. 30, 2016

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
September 30, 2016
Cash	$	494		$	494	$	—		$	—
Short-term investments	213			213		—			—
Net derivative contracts	148			—		148			—
Long-term debt converted to floating interest rates by    interest rate swaps - net	(172		)	—		(172		)	—
December 31, 2015
Cash	$	268		$	268	$	—		$	—
Short-term investments	177			177		—			—
Net derivative contracts	86			—		86			—
Long-term debt converted to floating interest rates by    interest rate swaps - net	(94		)	—		(94		)	—

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DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES (Tables)

9 Months Ended

Sep. 30, 2016

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Financial Instruments Recognized in 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
September 30, 2016
Derivatives designated as hedges
Fixed-to-floating interest rate  swaps	$	3,765	$	—	$	172	$	—	$	—	Fair value	1 month to 19 years
Forward starting floating-to-fixed  interest rate swaps	450		—		—		—		18		Cash flow	12 years
Currency exchange contracts	826		5		1		19		14		Cash flow	1 to 36 months
Total			$	5	$	173	$	19	$	32
Derivatives not designated as  hedges
Currency exchange contracts	$	3,991	$	34	$	—	$	15	$	—		1 to 24 months
Commodity contracts	41		2				—					1 to 12 months
Total			$	36	$	—	$	15	$	—
December 31, 2015
Derivatives designated as hedges
Fixed-to-floating interest rate  swaps	$	3,715	$	—	$	96	$	—	$	2	Fair value	2 to 19 years
Forward starting floating-to-fixed  interest rate swaps	50		—		—		—		—		Cash flow	12 years
Currency exchange contracts	724		18		1		8		6		Cash flow	1 to 36 months
Commodity contracts	1		—		—		—		—		Cash flow	1 to 12 months
Total			$	18	$	97	$	8	$	8
Derivatives not designated as  hedges
Currency exchange contracts	$	4,198	$	27			$	40				1 to 12 months
Total			$	27			$	40

Amounts Recognized in Accumulated Other Comprehensive Loss

:

	Gain (loss) recognized in other comprehensive (loss) income					Location of gain (loss) reclassified from Accumulated other comprehensive loss	Gain (loss) reclassified from Accumulated other comprehensive loss
	Three months ended September 30						Three months ended September 30
	2016			2015			2016			2015
Derivatives designated as    cash flow hedges
Forward starting floating-to-fixed  interest rate swaps	$	1		$	—	Interest expense - net	$	—		$	—
Currency exchange contracts	(3		)	6		Cost of products sold	(4		)	5
Total	$	(2	)	$	6		$	(4	)	$	5

	Gain (loss) recognized in other comprehensive (loss) income					Location of gain (loss) reclassified from Accumulated other comprehensive loss	Gain (loss) reclassified from Accumulated other comprehensive loss
	Nine months ended September 30						Nine months ended September 30
	2016			2015			2016			2015
Derivatives designated as cash    flow hedges
Forward starting floating-to-fixed  interest rate swaps	$	(18	)	$	—	Interest expense - net	$	—		$	—
Currency exchange contracts	(35		)	16		Cost of products sold	(3		)	11
Total	$	(53	)	$	16		$	(3	)	$	11

Amounts recognized in Net Income

Amounts recognized in net income follow:

	Three months ended September 30						Nine months ended September 30
	2016			2015			2016			2015
Derivatives designated as fair value hedges
Fixed-to-floating interest rate swaps	$	(28	)	$	65		$	78		$	62
Related long-term debt converted to floating interest    rates by interest rate swaps	28			(65		)	(78		)	(62		)
	$	—		$	—		$	—		$	—

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INVENTORY (Tables)

9 Months Ended

Sep. 30, 2016

Inventory Disclosure [Abstract]

Components of Inventory

The components of inventory follow:

	September 30, 2016			December 31, 2015
Raw materials	$	910		$	885
Work-in-process	431			412
Finished goods	1,083			1,131
Inventory at FIFO	2,424			2,428
Excess of FIFO over LIFO cost	(96		)	(105		)
Total inventory	$	2,328		$	2,323

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BUSINESS SEGMENT INFORMATION (Tables)

9 Months Ended

Sep. 30, 2016

Segment Reporting [Abstract]

Business Segment Information

	Three months ended September 30						Nine months ended September 30
	2016			2015			2016			2015
Net sales
Electrical Products	$	1,767		$	1,771		$	5,231		$	5,246
Electrical Systems and Services	1,436			1,487			4,207			4,437
Hydraulics	562			599			1,702			1,907
Aerospace	436			449			1,328			1,367
Vehicle	786			897			2,412			2,841
Total net sales	$	4,987		$	5,203		$	14,880		$	15,798
Segment operating profit
Electrical Products	$	331		$	322		$	924		$	858
Electrical Systems and Services	197			164			534			573
Hydraulics	61			44			161			184
Aerospace	88			79			251			233
Vehicle	122			136			377			490
Total segment operating profit	799			745			2,247			2,338
Corporate
Amortization of intangible assets	(99		)	(102		)	(297		)	(306		)
Interest expense - net	(59		)	(59		)	(173		)	(175		)
Pension and other postretirement benefits expense	(18		)	(38		)	(45		)	(99		)
Other corporate expense - net	(50		)	(59		)	(164		)	(168		)
Income before income taxes	573			487			1,568			1,590
Income tax expense	51			42			151			143
Net income	522			445			1,417			1,447
Less net loss for noncontrolling interests	1			1			1			—
Net income attributable to Eaton ordinary shareholders	$	523		$	446		$	1,418		$	1,447

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CONDENSED CONSOLIDATING FINANCIAL STATEMENTS (Tables)

9 Months Ended

Sep. 30, 2016

Condensed Consolidating Financial Information [Abstract]

Condensed Consolidating Financial Statements

CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2016
	Eaton Corporation plc			Eaton Corporation			Guarantors			Other subsidiaries			Consolidating adjustments			Total
Net sales	$	—		$	1,660		$	1,583		$	3,040		$	(1,296	)	$	4,987
Cost of products sold	—			1,329			1,162			2,173			(1,293		)	3,371
Selling and administrative expense	2			330			197			324			—			853
Research and development expense	—			59			43			44			—			146
Interest expense (income) - net	—			59			4			(3		)	(1		)	59
Other expense (income) - net	(1		)	18			—			(32		)	—			(15		)
Equity in loss (earnings) of    subsidiaries, net of tax	(628		)	(173		)	(895		)	(219		)	1,915			—
Intercompany expense (income) - net	104			(47		)	336			(393		)	—			—
Income (loss) before income taxes	523			85			736			1,146			(1,917		)	573
Income tax expense (benefit)	—			(11		)	10			53			(1		)	51
Net income (loss)	523			96			726			1,093			(1,916		)	522
Less net loss (income) for    noncontrolling interests	—			—			—			—			1			1
Net income (loss) attributable to    Eaton ordinary shareholders	$	523		$	96		$	726		$	1,093		$	(1,915	)	$	523
Other comprehensive income (loss)	$	24		$	24		$	29		$	2		$	(55	)	$	24
Total comprehensive income   (loss) attributable to Eaton   ordinary shareholders	$	547		$	120		$	755		$	1,095		$	(1,970	)	$	547

CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2015
	Eaton Corporation plc			Eaton Corporation			Guarantors			Other subsidiaries			Consolidating adjustments			Total
Net sales	$	—		$	1,755		$	1,664		$	3,105		$	(1,321	)	$	5,203
Cost of products sold	—			1,380			1,269			2,265			(1,317		)	3,597
Selling and administrative expense	2			375			191			339			—			907
Research and development expense	—			65			51			40			—			156
Interest expense (income) - net	—			54			5			(3		)	3			59
Other expense (income) - net	—			11			3			(17		)	—			(3		)
Equity in loss (earnings) of    subsidiaries, net of tax	(534		)	(264		)	(888		)	(64		)	1,750			—
Intercompany expense (income) - net	86			(54		)	258			(290		)	—			—
Income (loss) before income taxes	446			188			775			835			(1,757		)	487
Income tax expense (benefit)				17			(15		)	38			2			42
Net income (loss)	446			171			790			797			(1,759		)	445
Less net loss (income) for    noncontrolling interests	—			—			—			1			—			1
Net income (loss) attributable to    Eaton ordinary shareholders	$	446		$	171		$	790		$	798		$	(1,759	)	$	446
Other comprehensive income (loss)	$	(312	)	$	(24	)	$	(305	)	$	(411	)	$	740		$	(312	)
Total comprehensive income    (loss) attributable to Eaton    ordinary shareholders	$	134		$	147		$	485		$	387		$	(1,019	)	$	134

CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2016
	Eaton Corporation plc			Eaton Corporation			Guarantors			Other subsidiaries			Consolidating adjustments			Total
Net sales	$	—		$	4,842		$	4,793		$	8,983		$	(3,738	)	$	14,880
Cost of products sold	—			3,788			3,554			6,478			(3,739		)	10,081
Selling and administrative expense	6			1,048			583			1,005			—			2,642
Research and development expense	—			176			138			130			—			444
Interest expense (income) - net	—			169			13			(13		)	4			173
Other expense (income) - net	(1		)	34			(3		)	(58		)	—			(28		)
Equity in loss (earnings) of    subsidiaries, net of tax	(1,726		)	(495		)	(2,384		)	(434		)	5,039			—
Intercompany expense (income) - net	303			(135		)	913			(1,081		)	—			—
Income (loss) before income taxes	1,418			257			1,979			2,956			(5,042		)	1,568
Income tax expense (benefit)	—			9			24			119			(1		)	151
Net income (loss)	1,418			248			1,955			2,837			(5,041		)	1,417
Less net loss (income) for    noncontrolling interests	—			—			—			(2		)	3			1
Net income (loss) attributable to    Eaton ordinary shareholders	$	1,418		$	248		$	1,955		$	2,835		$	(5,038	)	$	1,418
Other comprehensive income (loss)	$	42		$	68		$	54		$	(21	)	$	(101	)	$	42
Total comprehensive income    (loss) attributable to Eaton    ordinary shareholders	$	1,460		$	316		$	2,009		$	2,814		$	(5,139	)	$	1,460

CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2015
	Eaton Corporation plc			Eaton Corporation			Guarantors			Other subsidiaries			Consolidating adjustments			Total
Net sales	$	—		$	5,263		$	5,065		$	9,469		$	(3,999	)	$	15,798
Cost of products sold	—			4,123			3,837			6,864			(3,959		)	10,865
Selling and administrative expense	6			1,120			539			1,058			—			2,723
Research and development expense	—			202			145			125			—			472
Interest expense (income) - net	—			166			16			(10		)	3			175
Other expense (income) - net	—			17			(5		)	(39		)	—			(27		)
Equity in loss (earnings) of    subsidiaries, net of tax	(1,698		)	(529		)	(2,403		)	(315		)	4,945			—
Intercompany expense (income) - net	245			(362		)	1,010			(893		)	—			—
Income (loss) before income taxes	1,447			526			1,926			2,679			(4,988		)	1,590
Income tax expense (benefit)	—			36			(32		)	154			(15		)	143
Net income (loss)	1,447			490			1,958			2,525			(4,973		)	1,447
Less net loss (income) for    noncontrolling interests	—			—			—			(1		)	1			—
Net income (loss) attributable to    Eaton ordinary shareholders	$	1,447		$	490		$	1,958		$	2,524		$	(4,972	)	$	1,447
Other comprehensive income (loss)	$	(716	)	$	39		$	(691	)	$	(875	)	$	1,527		$	(716	)
Total comprehensive income (loss) attributable to Eaton ordinary shareholders	$	731		$	529		$	1,267		$	1,649		$	(3,445	)	$	731

CONDENSED CONSOLIDATING BALANCE SHEETS SEPTEMBER 30, 2016
	Eaton Corporation plc		Eaton Corporation		Guarantors		Other subsidiaries		Consolidating adjustments			Total
Assets
Current assets
Cash	$	1	$	70	$	4	$	419	$	—		$	494
Short-term investments	—		—		—		213		—			213
Accounts receivable - net	—		510		1,072		2,077		—			3,659
Intercompany accounts    receivable	2		637		4,149		3,484		(8,272		)	—
Inventory	—		365		647		1,395		(79		)	2,328
Prepaid expenses and    other current assets	—		107		40		219		27			393
Total current assets	3		1,689		5,912		7,807		(8,324		)	7,087
Property, plant and    equipment - net	—		863		712		1,931		—			3,506
Other noncurrent assets
Goodwill	—		1,355		6,264		5,815		—			13,434
Other intangible assets	—		172		3,481		2,036		—			5,689
Deferred income taxes	—		987		—		231		(806		)	412
Investment in subsidiaries	32,690		13,491		72,562		12,194		(130,937		)	—
Intercompany loans receivable	—		7,614		2,182		56,101		(65,897		)	—
Other assets	—		603		129		377		—			1,109
Total assets	$	32,693	$	26,774	$	91,242	$	86,492	$	(205,964	)	$	31,237
Liabilities and    shareholders’ equity
Current liabilities
Short-term debt	$	—	$	—	$	—	$	1	$	—		$	1
Current portion of    long-term debt	—		251		299		—		—			550
Accounts payable	—		415		259		1,116		—			1,790
Intercompany accounts payable	194		3,966		2,982		1,130		(8,272		)	—
Accrued compensation	—		85		51		252		—			388
Other current liabilities	1		630		297		939		(1		)	1,866
Total current liabilities	195		5,347		3,888		3,438		(8,273		)	4,595
Noncurrent liabilities
Long-term debt	—		6,889		971		16		5			7,881
Pension liabilities	—		605		168		759		—			1,532
Other postretirement    benefits liabilities	—		237		114		78		—			429
Deferred income taxes	—		—		771		401		(806		)	366
Intercompany loans payable	17,094		2,377		44,900		1,526		(65,897		)	—
Other noncurrent liabilities	—		344		214		430		—			988
Total noncurrent liabilities	17,094		10,452		47,138		3,210		(66,698		)	11,196
Shareholders’ equity
Eaton shareholders' equity	15,404		10,975		40,216		79,807		(130,998		)	15,404
Noncontrolling interests	—		—		—		37		5			42
Total equity	15,404		10,975		40,216		79,844		(130,993		)	15,446
Total liabilities and equity	$	32,693	$	26,774	$	91,242	$	86,492	$	(205,964	)	$	31,237

CONDENSED CONSOLIDATING BALANCE SHEETS DECEMBER 31, 2015
	Eaton Corporation plc		Eaton Corporation		Guarantors		Other subsidiaries		Consolidating adjustments			Total
Assets
Current assets
Cash	$	—	$	26	$	7	$	235	$	—		$	268
Short-term investments	—		—		2		175		—			177
Accounts receivable - net	—		512		1,030		1,937		—			3,479
Intercompany accounts    receivable	1		842		3,888		2,928		(7,659		)	—
Inventory	—		357		651		1,395		(80		)	2,323
Prepaid expenses and    other current assets	—		77		40		229		23			369
Total current assets	1		1,814		5,618		6,899		(7,716		)	6,616
Property, plant and    equipment - net	—		930		750		1,885		—			3,565
Other noncurrent assets
Goodwill	—		1,355		6,264		5,860		—			13,479
Other intangible assets	—		182		3,624		2,208		—			6,014
Deferred income taxes	—		1,016		—		218		(872		)	362
Investment in subsidiaries	29,627		12,883		60,139		10,046		(112,695		)	—
Intercompany loans receivable	—		8,641		1,573		44,835		(55,049		)	—
Other assets	—		492		122		346		—			960
Total assets	$	29,628	$	27,313	$	78,090	$	72,297	$	(176,332	)	$	30,996
Liabilities and    shareholders’ equity
Current liabilities
Short-term debt	$	—	$	408	$	—	$	18	$	—		$	426
Current portion of    long-term debt	—		1		240		1		—			242
Accounts payable	—		392		260		1,106		—			1,758
Intercompany accounts payable	219		4,009		2,248		1,183		(7,659		)	—
Accrued compensation	—		77		53		236		—			366
Other current liabilities	1		644		318		875		(5		)	1,833
Total current liabilities	220		5,531		3,119		3,419		(7,664		)	4,625
Noncurrent liabilities
Long-term debt	—		7,053		675		17		1			7,746
Pension liabilities	—		639		165		782		—			1,586
Other postretirement    benefits liabilities	—		245		118		77		—			440
Deferred income taxes	—		—		815		447		(872		)	390
Intercompany loans payable	14,222		2,962		36,432		1,433		(55,049		)	—
Other noncurrent liabilities	—		346		200		432		—			978
Total noncurrent liabilities	14,222		11,245		38,405		3,188		(55,920		)	11,140
Shareholders’ equity
Eaton shareholders' equity	15,186		10,537		36,566		65,653		(112,756		)	15,186
Noncontrolling interests	—		—		—		37		8			45
Total equity	15,186		10,537		36,566		65,690		(112,748		)	15,231
Total liabilities and equity	$	29,628	$	27,313	$	78,090	$	72,297	$	(176,332	)	$	30,996

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2016
	Eaton Corporation plc			Eaton Corporation			Guarantors			Other subsidiaries			Consolidating adjustments			Total
Net cash provided by (used in)    operating activities	$	(158	)	$	(29	)	$	(283	)	$	2,384		$	—		$	1,914
Investing activities
Capital expenditures for property,    plant and equipment	—			(62		)	(75		)	(209		)	—			(346		)
Cash received from (paid for) acquisitions of businesses, net of cash acquired	—			—			1			—			—			1
Sales (purchases) of short-term investments - net	—			—			2			(31		)	—			(29		)
Investments in affiliates	(1,250		)	—			(120		)	(1,370		)	2,740			—
Return of investments in affiliates	—			—			47			—			(47		)	—
Loans to affiliates	—			(287		)	(655		)	(6,457		)	7,399			—
Repayments of loans from affiliates	—			1,288			—			4,501			(5,789		)	—
Other - net	—			—			30			(27		)	—			3
Net cash provided by (used in) investing activities	(1,250		)	939			(770		)	(3,593		)	4,303			(371		)
Financing activities
Proceeds from borrowings	—			22			611			—			—			633
Payments on borrowings	—			(408		)	(240		)	(18		)	—			(666		)
Proceeds from borrowings from    affiliates	3,333			2,815			1,051			200			(7,399		)	—
Payments on borrowings from    affiliates	(637		)	(3,453		)	(1,658		)	(41		)	5,789			—
Capital contributions from affiliates	—			—			1,370			1,370			(2,740		)	—
Return of capital to affiliates	—			—			—			(47		)	47			—
Other intercompany financing    activities	—			158			(81		)	(77		)	—			—
Cash dividends paid	(780		)	—			—			—			—			(780		)
Exercise of employee stock options	60			—			—			—			—			60
Repurchase of shares	(567		)	—			—			—			—			(567		)
Excess tax benefit from    equity-based compensation	—			—			—			—			—			—
Other - net	—			—			(3		)	(2		)	—			(5		)
Net cash provided by (used in)    financing activities	1,409			(866		)	1,050			1,385			(4,303		)	(1,325		)
Effect of currency on cash	—			—			—			8			—			8
Total increase (decrease) in cash	1			44			(3		)	184			—			226
Cash at the beginning of the period	—			26			7			235			—			268
Cash at the end of the period	$	1		$	70		$	4		$	419		$	—		$	494

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2015
	Eaton Corporation plc			Eaton Corporation			Guarantors			Other subsidiaries			Consolidating adjustments			Total
Net cash provided by (used in)    operating activities	$	(85	)	$	(93	)	$	(23	)	$	1,830		$	—		$	1,629
Investing activities
Capital expenditures for property,    plant and equipment	—			(68		)	(100		)	(200		)	—			(368		)
Cash received from (paid for) acquisitions of businesses, net of cash acquired	—			—			—			(38		)	—			(38		)
Sales (purchases) of short-term investments - net	—			—			—			76			—			76
Investments in affiliates	(1,482		)	—			(1,176		)	(1,482		)	4,140			—
Loans to affiliates	—			(307		)	(39		)	(7,638		)	7,984			—
Repayments of loans from affiliates	—			306			58			5,514			(5,878		)	—
Proceeds from sale of businesses	—			—			—			1			—			1
Other - net	—			(41		)	33			(36		)	—			(44		)
Net cash provided by (used in)    investing activities	(1,482		)	(110		)	(1,224		)	(3,803		)	6,246			(373		)
Financing activities
Proceeds from borrowings	—			—			—			1			—			1
Payments on borrowings	—			(102		)	(301		)	(2		)	—			(405		)
Proceeds from borrowings from    affiliates	2,783			4,577			581			43			(7,984		)	—
Payments on borrowings from    affiliates	(40		)	(4,617		)	(1,160		)	(61		)	5,878			—
Capital contributions from affiliates	—			1,176			1,482			1,482			(4,140		)	—
Other intercompany financing activities	—			(859		)	644			215			—			—
Cash dividends paid	(771		)	—			—			—			—			(771		)
Exercise of employee stock options	48			—			—			—			—			48
Repurchase of shares	(454		)	—			—			—			—			(454		)
Other - net	—			—			—			(8		)	—			(8		)
Net cash provided by (used in)    financing activities	1,566			175			1,246			1,670			(6,246		)	(1,589		)
Effect of currency on cash	—			—			—			(30		)	—			(30		)
Total increase (decrease) in cash	(1		)	(28		)	(1		)	(333		)	—			(363		)
Cash at the beginning of the period	1			173			13			594			—			781
Cash at the end of the period	$	—		$	145		$	12		$	261		$	—		$	418

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BASIS OF PRESENTATION (Details) - USD ($) $ in Millions	Sep. 30, 2016	Dec. 31, 2015
Debt [Member]
Reclassification of Debt Issuance Costs [Line Items]
Reclassification of debt issuance costs	$ 36	$ 35

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ACQUISITIONS OF BUSINESSES (Details) - USD ($) $ in Millions	12 Months Ended
	Sep. 30, 2015	Dec. 31, 2014
Electrical Products [Member] | Ephesus Lighting, Inc. [Member]
Business Acquisition [Line Items]
Revenue Reported by acquired entity for last annual period	$ 23
Electrical Systems and Services [Member] | Oxalis Group Ltd. [Member]
Business Acquisition [Line Items]
Revenue Reported by acquired entity for last annual period		$ 9

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ACQUISITION AND INTEGRATION CHARGES (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Acquisition integration charges [Line Items]
Acquisition integration charges	$ 1	$ 10	$ 3	$ 33
Income taxes	0	3	1	11
Total after income taxes	$ 1	$ 7	$ 2	$ 22
Per ordinary share - diluted (dollars per share)	$ 0.00	$ 0.01	$ 0.00	$ 0.05
Electrical Products [Member]
Acquisition integration charges [Line Items]
Acquisition integration charges	$ 1	$ 5	$ 2	$ 17
Electrical Systems and Services [Member]
Acquisition integration charges [Line Items]
Acquisition integration charges	0	3	1	10
Hydraulics [Member]
Acquisition integration charges [Line Items]
Acquisition integration charges	0	0	0	2
Total business segments [Member]
Acquisition integration charges [Line Items]
Acquisition integration charges	1	8	3	29
Corporate [Member]
Acquisition integration charges [Line Items]
Acquisition integration charges	$ 0	$ 2	$ 0	$ 4

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RESTRUCTURING CHARGES - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015	Dec. 31, 2017	Dec. 31, 2016
Restructuring Cost and Reserve [Line Items]
Restructuring charges	$ 23	$ 113	$ 121	$ 127	$ 129
Employee Severance [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring charges			$ 95		$ 112
Scenario, Forecast [Member] | Employee Severance [Member]
Restructuring Cost and Reserve [Line Items]
Charges associated with restructuring activities						$ 180	$ 145

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RESTRUCTURING CHARGES - Summary of Restructuring Charges by Type (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
Restructuring and Related Activities [Abstract]
Workforce reductions	$ 18	$ 99	$ 95	$ 111
Plant closings and other	5	14	26	16
Total	$ 23	$ 113	$ 121	$ 127	$ 129

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RESTRUCTURING CHARGES - Summary of Restructuring Charges by Segment (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
Restructuring Cost and Reserve [Line Items]
Restructuring charges	$ 23	$ 113	$ 121	$ 127	$ 129
Electrical Products [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring charges	1	11	27	12
Electrical Systems and Services [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring charges	7	26	20	26
Hydraulics [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring charges	10	25	44	34
Aerospace [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring charges	(1)	5	3	5
Vehicle [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring charges	5	29	22	33
Corporate, Non-Segment [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring charges	$ 1	$ 17	$ 5	$ 17

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RESTRUCTURING CHARGES - Restructuring Roll Forward (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
Restructuring Reserve [Roll Forward]
Beginning balance			$ 54	$ 0	$ 0
Liability recognized	$ 23	$ 113	121	127	129
Payments			(100)		(62)
Other adjustments			(15)		(13)
Ending balance	60		60		54
Workforce reductions [Member]
Restructuring Reserve [Roll Forward]
Beginning balance			54	0	0
Liability recognized			95		112
Payments			(89)		(59)
Other adjustments			(1)		1
Ending balance	59		59		54
Plant closings and other [Member]
Restructuring Reserve [Roll Forward]
Beginning balance			0	$ 0	0
Liability recognized			26		17
Payments			(11)		(3)
Other adjustments			(14)		(14)
Ending balance	$ 1		$ 1		$ 0

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GOODWILL (Details) $ in Millions	9 Months Ended
	Sep. 30, 2016 USD ($)
Goodwill [Roll Forward]
Beginning balance	$ 13,479
Translation	(45)
Ending balance	13,434
Electrical Products [Member]
Goodwill [Roll Forward]
Beginning balance	6,642
Translation	(24)
Ending balance	6,618
Electrical Systems and Services [Member]
Goodwill [Roll Forward]
Beginning balance	4,279
Translation	(12)
Ending balance	4,267
Hydraulics [Member]
Goodwill [Roll Forward]
Beginning balance	1,259
Translation	2
Ending balance	1,261
Aerospace [Member]
Goodwill [Roll Forward]
Beginning balance	956
Translation	(13)
Ending balance	943
Vehicle [Member]
Goodwill [Roll Forward]
Beginning balance	343
Translation	2
Ending balance	$ 345

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DEBT (Details) € in Millions, $ in Millions	Oct. 14, 2016 USD ($)	Sep. 30, 2016 EUR (€)	Sep. 30, 2016 USD ($)
Senior Notes [Member]
Debt Instrument [Line Items]
Issuance of senior notes		€ 550	$ 615
Proceeds from issuance of senior notes		€ 544	$ 609
Senior Notes [Member] | Senior notes due 2024 [Member]
Debt Instrument [Line Items]
Debt Instrument, Interest Rate, Stated Percentage		0.75%	0.75%
Refinanced five-year revolving credit facility [Member]
Debt Instrument [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity			$ 750
Five-year revolving credit facility, expires October 14, 2021 [Member] | Subsequent Event [Member] | Scenario, Actual [Member]
Debt Instrument [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity	$ 750
Four-year revolving credit facility, expires October 3, 2018 [Member]
Debt Instrument [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity			500
Five-year revolving credit facility, expires October 3, 2019 [Member]
Debt Instrument [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity			750
Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity			$ 2,000

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RETIRED BENEFIT PLANS (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
United States pension benefit expense [Member]
Retirement benefits plans expense
Service cost	$ 28	$ 31	$ 83	$ 92
Interest cost	31	39	94	117
Expected return on plan assets	(63)	(65)	(188)	(196)
Amortization	23	29	69	89
Total	19	34	58	102
Settlements and curtailments	24	25	63	58
Total expense	43	59	121	160
Non-United States pension benefit expense [Member]
Retirement benefits plans expense
Service cost	16	18	49	55
Interest cost	16	18	48	54
Expected return on plan assets	(23)	(25)	(71)	(75)
Amortization	8	10	25	30
Total	17	21	51	64
Settlements and curtailments	0	0	0	0
Total expense	17	21	51	64
Other postretirement benefits expense [Member]
Retirement benefits plans expense
Service cost	1	2	3	5
Interest cost	4	6	13	18
Expected return on plan assets	(2)	(2)	(5)	(4)
Amortization	(2)	0	(6)	1
Total	1	6	5	20
Settlements and curtailments	0	0	0	0
Total expense	$ 1	$ 6	$ 5	$ 20

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LEGAL CONTINGENCIES (Details) BRL in Millions, $ in Millions	Jun. 30, 2016 USD ($)	Mar. 31, 2016 BRL
Raysul [Member]
Loss Contingencies [Line Items]
Loss contingency accrual	$ 31	BRL 100

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INCOME TAXES (Details)	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Income Tax Disclosure [Abstract]
Effective tax rate	9.00%	9.00%	10.00%	9.00%

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EQUITY - Changes in Shareholders's Equity (Details) - USD ($) shares in Millions, $ in Millions	3 Months Ended			9 Months Ended
	Sep. 30, 2016	Mar. 31, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Changes in Shareholders' equity
Beginning balance		$ 15,231		$ 15,231
Net income (loss)	$ 522		$ 445	1,417	$ 1,447
Other comprehensive income	24		$ (312)	42	$ (716)
Cash dividends paid				(782)
Issuance of shares under equity-based compensation plans - net				105
Repurchase of shares				(567)
Ending balance	15,446			15,446
Parent [Member]
Changes in Shareholders' equity
Beginning balance		15,186		15,186
Net income (loss)				1,418
Other comprehensive income				42
Cash dividends paid				(780)
Issuance of shares under equity-based compensation plans - net				105
Repurchase of shares				(567)
Ending balance	15,404			15,404
Noncontrolling Interest [Member]
Changes in Shareholders' equity
Beginning balance		$ 45		45
Net income (loss)				(1)
Other comprehensive income				0
Cash dividends paid				(2)
Issuance of shares under equity-based compensation plans - net				0
Repurchase of shares				0
Ending balance	$ 42			$ 42
2013 Program [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Number of shares authorized to be repurchased (in shares)	40.0			40.0
Ordinary shares purchased (in shares)		1.5	4.8		7.2
Changes in Shareholders' equity
Repurchase of shares		$ (82)	$ (284)		$ (454)
2016 Program [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Ordinary shares purchased (in shares)	3.7			7.7
Amount of shares repurchased (up to)	$ 2,500			$ 2,500
Changes in Shareholders' equity
Repurchase of shares	$ (243)			$ (485)

XML

EQUITY - Changes in Accumulated Other Comprehensive (Loss) Income (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Amounts reclassified from Accumulated other comprehensive loss (income)			$ 101
Net current-period Other comprehensive income (loss)	$ 24	$ (312)	42	$ (716)
Currency translation and related hedging instruments [Member]
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance			(2,492)
Other comprehensive (loss) income before reclassifications			(57)
Amounts reclassified from Accumulated other comprehensive loss (income)			0
Net current-period Other comprehensive income (loss)			(57)
Ending balance	(2,549)		(2,549)
Pensions and other postretirement benefits [Member]
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance			(1,374)
Other comprehensive (loss) income before reclassifications			33
Amounts reclassified from Accumulated other comprehensive loss (income)			99
Net current-period Other comprehensive income (loss)			132
Ending balance	(1,242)		(1,242)
Cash flow hedges [Member]
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance			3
Other comprehensive (loss) income before reclassifications			(35)
Amounts reclassified from Accumulated other comprehensive loss (income)			2
Net current-period Other comprehensive income (loss)			(33)
Ending balance	(30)		(30)
Total AOCI Attributable to Parent [Member]
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance			(3,863)
Other comprehensive (loss) income before reclassifications			(59)
Amounts reclassified from Accumulated other comprehensive loss (income)			101
Net current-period Other comprehensive income (loss)			42
Ending balance	$ (3,821)		$ (3,821)

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EQUITY - Reclassifications Out of Accumulated Other Comprehensive Loss (Details) $ in Millions	9 Months Ended
	Sep. 30, 2016 USD ($)
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Actuarial loss and prior service cost	$ (151)	[1]
Tax benefit	52
Total, net of tax	(99)
Tax benefit	1
Total, net of tax	(2)
Total reclassifications for the period	(101)
Cost of products sold [Member] | Currency exchange contracts [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Currency exchange contracts	$ (3)

[1] These components of Accumulated other comprehensive loss are included in the computation of net periodic benefit cost. See Note 7 for additional information about pension and other postretirement benefits items.

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EQUITY - Calculation of Net Income per Ordinary Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Calculation of net income per ordinary share attributable to ordinary shareholders
Net income attributable to Eaton ordinary shareholders	$ 523	$ 446	$ 1,418	$ 1,447
Weighted-average number of ordinary shares outstanding - diluted (shares)	455.6	466.4	457.9	468.5
Less dilutive effect of equity-based compensation (shares)	1.7	1.3	1.4	1.7
Weighted-average number of ordinary shares outstanding - basic (shares)	453.9	465.1	456.5	466.8
Net income per share attributable to Eaton ordinary shareholders
Diluted (usd per share)	$ 1.15	$ 0.96	$ 3.09	$ 3.09
Basic (usd per share)	$ 1.15	$ 0.96	$ 3.10	$ 3.10
Stock options excluded from calculation of diluted net income per ordinary share (shares)	1.5	1.8	1.8	1.3

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FAIR VALUE MEASUREMENTS - Summary of Financial Instruments at Fair Value (Details) - USD ($) $ in Millions	Sep. 30, 2016	Dec. 31, 2015	Sep. 30, 2015	Dec. 31, 2014
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items]
Cash	$ 494	$ 268	$ 418	$ 781
Short-term investments	213	177
Net derivative contracts	148	86
Long-term debt converted to floating interest rates by interest rate swaps - net	(172)	(94)
Level 1 [Member]
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items]
Cash	494	268
Short-term investments	213	177
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	148	86
Long-term debt converted to floating interest rates by interest rate swaps - net	(172)	(94)
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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FAIR VALUE MEASUREMENTS - Other Fair Value Measurements (Details) - USD ($) $ in Millions	Sep. 30, 2016	Dec. 31, 2015
Other Fair Value Measurements [Line Items]
Carrying value of long-term debt and current portion of long-term debt	$ 8,431	$ 7,988
Level 2 [Member]
Other Fair Value Measurements [Line Items]
Fair value of long-term debt and current portion of long-term debt	$ 9,050	$ 8,231

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DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES - Derivative Financial Instrument Recognized in the Consolidated Balance sheet (Details) - USD ($) $ in Millions	9 Months Ended	12 Months Ended
	Sep. 30, 2016	Dec. 31, 2015
Derivatives, Fair Value [Line Items]
Foreign Currency Note Payable, Noncurrent, after-tax	$ 99	$ 83
Foreign Currency Note Payable, Noncurrent, pre-tax	$ 607
Derivatives not designated as hedges
Percentage of intercompany balance sheet exposure	100.00%
Other current assets [Member]
Derivatives designated as hedges
Derivative asset designated as hedging instrument	$ 5	18
Derivatives not designated as hedges
Derivative instruments not designated as hedging instruments, asset, at fair value	36	27
Other noncurrent assets [Member]
Derivatives designated as hedges
Derivative asset designated as hedging instrument	173	97
Derivatives not designated as hedges
Derivative instruments not designated as hedging instruments, asset, at fair value	0
Other current liabilities [Member]
Derivatives designated as hedges
Derivative liability designated as hedging instrument	19	8
Derivatives not designated as hedges
Derivative instruments not designated as hedging instruments, liability, at fair value	15	40
Other noncurrent liabilities [Member]
Derivatives designated as hedges
Derivative liability designated as hedging instrument	32	8
Derivatives not designated as hedges
Derivative instruments not designated as hedging instruments, liability, at fair value	0
Currency exchange contracts [Member] | Other current assets [Member]
Derivatives not designated as hedges
Derivative instruments not designated as hedging instruments, asset, at fair value	34	27
Currency exchange contracts [Member] | Other noncurrent assets [Member]
Derivatives not designated as hedges
Derivative instruments not designated as hedging instruments, asset, at fair value	0
Currency exchange contracts [Member] | Other current liabilities [Member]
Derivatives not designated as hedges
Derivative instruments not designated as hedging instruments, liability, at fair value	15	40
Currency exchange contracts [Member] | Other noncurrent liabilities [Member]
Derivatives not designated as hedges
Derivative instruments not designated as hedging instruments, liability, at fair value	0
Commodity contracts [Member] | Other current assets [Member]
Derivatives not designated as hedges
Derivative instruments not designated as hedging instruments, asset, at fair value	2
Commodity contracts [Member] | Other current liabilities [Member]
Derivatives not designated as hedges
Derivative instruments not designated as hedging instruments, liability, at fair value	0
Derivatives designated as hedges [Member] | Fair value hedging [Member] | Fixed-to-floating interest rate swaps [Member]
Derivatives designated as hedges
Notional amount	3,765	3,715
Derivatives designated as hedges [Member] | 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
Derivatives designated as hedges [Member] | 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	172	96
Derivatives designated as hedges [Member] | 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
Derivatives designated as hedges [Member] | Fair value hedging [Member] | Fixed-to-floating interest rate swaps [Member] | Other noncurrent liabilities [Member]
Derivatives designated as hedges
Derivative liability designated as hedging instrument	0	2
Derivatives designated as hedges [Member] | Cash Flow Hedging [Member] | Forward Starting Floating-to-Fixed Interest Rate Swap [Member]
Derivatives designated as hedges
Notional amount	450	50
Derivatives designated as hedges [Member] | Cash Flow Hedging [Member] | Forward Starting Floating-to-Fixed Interest Rate Swap [Member] | Other current assets [Member]
Derivatives designated as hedges
Derivative asset designated as hedging instrument	0	0
Derivatives designated as hedges [Member] | Cash Flow Hedging [Member] | Forward Starting Floating-to-Fixed Interest Rate Swap [Member] | Other noncurrent assets [Member]
Derivatives designated as hedges
Derivative asset designated as hedging instrument	0	0
Derivatives designated as hedges [Member] | Cash Flow Hedging [Member] | Forward Starting Floating-to-Fixed Interest Rate Swap [Member] | Other current liabilities [Member]
Derivatives designated as hedges
Derivative liability designated as hedging instrument	0	0
Derivatives designated as hedges [Member] | Cash Flow Hedging [Member] | Forward Starting Floating-to-Fixed Interest Rate Swap [Member] | Other noncurrent liabilities [Member]
Derivatives designated as hedges
Derivative liability designated as hedging instrument	18	0
Derivatives designated as hedges [Member] | Cash Flow Hedging [Member] | Currency exchange contracts [Member]
Derivatives designated as hedges
Notional amount	826	724
Derivatives designated as hedges [Member] | Cash Flow Hedging [Member] | Currency exchange contracts [Member] | Other current assets [Member]
Derivatives designated as hedges
Derivative asset designated as hedging instrument	5	18
Derivatives designated as hedges [Member] | Cash Flow Hedging [Member] | Currency exchange contracts [Member] | Other noncurrent assets [Member]
Derivatives designated as hedges
Derivative asset designated as hedging instrument	1	1
Derivatives designated as hedges [Member] | Cash Flow Hedging [Member] | Currency exchange contracts [Member] | Other current liabilities [Member]
Derivatives designated as hedges
Derivative liability designated as hedging instrument	19	8
Derivatives designated as hedges [Member] | Cash Flow Hedging [Member] | Currency exchange contracts [Member] | Other noncurrent liabilities [Member]
Derivatives designated as hedges
Derivative liability designated as hedging instrument	14	6
Derivatives designated as hedges [Member] | Cash Flow Hedging [Member] | Commodity contracts [Member]
Derivatives designated as hedges
Notional amount		1
Derivatives designated as hedges [Member] | Cash Flow Hedging [Member] | Commodity contracts [Member] | Other current assets [Member]
Derivatives designated as hedges
Derivative asset designated as hedging instrument		0
Derivatives designated as hedges [Member] | Cash Flow Hedging [Member] | Commodity contracts [Member] | Other noncurrent assets [Member]
Derivatives designated as hedges
Derivative asset designated as hedging instrument		0
Derivatives designated as hedges [Member] | Cash Flow Hedging [Member] | Commodity contracts [Member] | Other current liabilities [Member]
Derivatives designated as hedges
Derivative liability designated as hedging instrument		0
Derivatives designated as hedges [Member] | Cash Flow Hedging [Member] | Commodity contracts [Member] | Other noncurrent liabilities [Member]
Derivatives designated as hedges
Derivative liability designated as hedging instrument		0
Derivatives not designated as hedges [Member] | Currency exchange contracts [Member]
Derivatives designated as hedges
Notional amount	3,991	$ 4,198
Derivatives not designated as hedges [Member] | Commodity contracts [Member]
Derivatives designated as hedges
Notional amount	$ 41
Minimum [Member] | Derivatives designated as hedges [Member] | Fair value hedging [Member] | Forward Starting Floating-to-Fixed Interest Rate Swap [Member]
Derivatives, Fair Value [Line Items]
Derivative, term of contract	12 years	12 years
Minimum [Member] | Derivatives designated as hedges [Member] | Fair value hedging [Member] | Fixed-to-floating interest rate swaps [Member]
Derivatives, Fair Value [Line Items]
Derivative, term of contract	1 month	2 years
Minimum [Member] | Derivatives designated as hedges [Member] | Cash Flow Hedging [Member] | Currency exchange contracts [Member]
Derivatives, Fair Value [Line Items]
Derivative, term of contract	1 month	1 month
Minimum [Member] | Derivatives designated as hedges [Member] | Cash Flow Hedging [Member] | Commodity contracts [Member]
Derivatives, Fair Value [Line Items]
Derivative, term of contract	1 month	1 month
Minimum [Member] | Derivatives not designated as hedges [Member] | Currency exchange contracts [Member]
Derivatives, Fair Value [Line Items]
Derivative, term of contract	1 month	1 month
Minimum [Member] | Derivatives not designated as hedges [Member] | Commodity contracts [Member]
Derivatives, Fair Value [Line Items]
Derivative, term of contract	1 month
Maximum [Member] | Derivatives designated as hedges [Member] | Fair value hedging [Member] | Forward Starting Floating-to-Fixed Interest Rate Swap [Member]
Derivatives, Fair Value [Line Items]
Derivative, term of contract	12 years	12 years
Maximum [Member] | Derivatives designated as hedges [Member] | Fair value hedging [Member] | Fixed-to-floating interest rate swaps [Member]
Derivatives, Fair Value [Line Items]
Derivative, term of contract	19 years	19 years
Maximum [Member] | Derivatives designated as hedges [Member] | Cash Flow Hedging [Member] | Currency exchange contracts [Member]
Derivatives, Fair Value [Line Items]
Derivative, term of contract	36 months	36 months
Maximum [Member] | Derivatives designated as hedges [Member] | Cash Flow Hedging [Member] | Commodity contracts [Member]
Derivatives, Fair Value [Line Items]
Derivative, term of contract	12 months	12 months
Maximum [Member] | Derivatives not designated as hedges [Member] | Currency exchange contracts [Member]
Derivatives, Fair Value [Line Items]
Derivative, term of contract	24 months	12 months
Maximum [Member] | Derivatives not designated as hedges [Member] | Commodity contracts [Member]
Derivatives, Fair Value [Line Items]
Derivative, term of contract	12 months

XML

DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES - Amounts Recognized in Accumulated Other Comprehensive Income (Details) - Cash flow hedges [Member] - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Interest expense - net [Member] | Forward Starting Floating-to-Fixed Interest Rate Swap [Domain]
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) recognized in other comprehensive (loss) income	$ 1	$ 0	$ (18)	$ 0
Gain (loss) reclassified from Accumulated other comprehensive loss	0	0	0	0
Cost of products sold [Member] | Currency exchange contracts [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) recognized in other comprehensive (loss) income	(3)	6	(35)	16
Gain (loss) reclassified from Accumulated other comprehensive loss	(4)	5	(3)	11
Cost of products sold or Interest expense - net [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) recognized in other comprehensive (loss) income	(2)	6	(53)	16
Gain (loss) reclassified from Accumulated other comprehensive loss	$ (4)	$ 5	$ (3)	$ 11

XML

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		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
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	(28)	65	78	62
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	$ 28	$ (65)	$ (78)	$ (62)

XML

INVENTORY (Details) - USD ($) $ in Millions	Sep. 30, 2016	Dec. 31, 2015
Inventory Disclosure [Abstract]
Raw materials	$ 910	$ 885
Work-in-process	431	412
Finished goods	1,083	1,131
Inventory at FIFO	2,424	2,428
Excess of FIFO over LIFO cost	(96)	(105)
Total inventory	$ 2,328	$ 2,323

XML

BUSINESS SEGMENT INFORMATION (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Business Segment Information
Net sales	$ 4,987	$ 5,203	$ 14,880	$ 15,798
Corporate
Interest expense - net	59	59	173	175
Pension and other postretirement benefits expense			(177)	(244)
Other corporate expense - net	(15)	(3)	(28)	(27)
Income before income taxes	573	487	1,568	1,590
Income tax expense	51	42	151	143
Net income	522	445	1,417	1,447
Less net loss for noncontrolling interests	1	1	1	0
Net income attributable to Eaton ordinary shareholders	523	446	1,418	1,447
Total business segments [Member]
Business Segment Information
Net sales	4,987	5,203	14,880	15,798
Segment operating profit	799	745	2,247	2,338
Total business segments [Member] | Electrical Products [Member]
Business Segment Information
Net sales	1,767	1,771	5,231	5,246
Segment operating profit	331	322	924	858
Total business segments [Member] | Electrical Systems and Services [Member]
Business Segment Information
Net sales	1,436	1,487	4,207	4,437
Segment operating profit	197	164	534	573
Total business segments [Member] | Hydraulics [Member]
Business Segment Information
Net sales	562	599	1,702	1,907
Segment operating profit	61	44	161	184
Total business segments [Member] | Aerospace [Member]
Business Segment Information
Net sales	436	449	1,328	1,367
Segment operating profit	88	79	251	233
Total business segments [Member] | Vehicle [Member]
Business Segment Information
Net sales	786	897	2,412	2,841
Segment operating profit	122	136	377	490
Corporate [Member]
Corporate
Amortization of intangible assets	(99)	(102)	(297)	(306)
Interest expense - net	(59)	(59)	(173)	(175)
Pension and other postretirement benefits expense	(18)	(38)	(45)	(99)
Other corporate expense - net	$ (50)	$ (59)	$ (164)	$ (168)

XML

CONDENSED CONSOLIDATING FINANCIAL STATEMENTS - Narrative (Details)	Nov. 20, 2012
Condensed Consolidating Financial Information [Abstract]
Eaton and certain other 100% owned subsidiaries guarantee of Senior Debt	100.00%

XML

CONDENSED CONSOLIDATING FINANCIAL STATEMENTS - Consolidating Statements of Comprehensive Income (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Consolidating Statements of Comprehensive Income, Captions [Line Items]
Net sales	$ 4,987	$ 5,203	$ 14,880	$ 15,798
Cost of products sold	3,371	3,597	10,081	10,865
Selling and administrative expense	853	907	2,642	2,723
Research and development expense	146	156	444	472
Interest expense (income) - net	59	59	173	175
Other expense (income) - net	(15)	(3)	(28)	(27)
Equity in loss (earnings) of subsidiaries, net of tax	0	0	0	0
Intercompany expense (income) - net	0	0	0	0
Income before income taxes	573	487	1,568	1,590
Income tax expense (benefit)	51	42	151	143
Net income	522	445	1,417	1,447
Less net loss (income) for noncontrolling interests	1	1	1	0
Net income attributable to Eaton ordinary shareholders	523	446	1,418	1,447
Other comprehensive income	24	(312)	42	(716)
Total comprehensive income (loss) attributable to Eaton ordinary shareholders	547	134	1,460	731
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	6	6
Research and development expense	0	0	0	0
Interest expense (income) - net	0	0	0	0
Other expense (income) - net	(1)	0	(1)	0
Equity in loss (earnings) of subsidiaries, net of tax	(628)	(534)	(1,726)	(1,698)
Intercompany expense (income) - net	104	86	303	245
Income before income taxes	523	446	1,418	1,447
Income tax expense (benefit)	0		0	0
Net income	523	446	1,418	1,447
Less net loss (income) for noncontrolling interests	0	0	0	0
Net income attributable to Eaton ordinary shareholders	523	446	1,418	1,447
Other comprehensive income	24	(312)	42	(716)
Total comprehensive income (loss) attributable to Eaton ordinary shareholders	547	134	1,460	731
Eaton Corporation [Member]
Consolidating Statements of Comprehensive Income, Captions [Line Items]
Net sales	1,660	1,755	4,842	5,263
Cost of products sold	1,329	1,380	3,788	4,123
Selling and administrative expense	330	375	1,048	1,120
Research and development expense	59	65	176	202
Interest expense (income) - net	59	54	169	166
Other expense (income) - net	18	11	34	17
Equity in loss (earnings) of subsidiaries, net of tax	(173)	(264)	(495)	(529)
Intercompany expense (income) - net	(47)	(54)	(135)	(362)
Income before income taxes	85	188	257	526
Income tax expense (benefit)	(11)	17	9	36
Net income	96	171	248	490
Less net loss (income) for noncontrolling interests	0	0	0	0
Net income attributable to Eaton ordinary shareholders	96	171	248	490
Other comprehensive income	24	(24)	68	39
Total comprehensive income (loss) attributable to Eaton ordinary shareholders	120	147	316	529
Other subsidiaries [Member]
Consolidating Statements of Comprehensive Income, Captions [Line Items]
Net sales	3,040	3,105	8,983	9,469
Cost of products sold	2,173	2,265	6,478	6,864
Selling and administrative expense	324	339	1,005	1,058
Research and development expense	44	40	130	125
Interest expense (income) - net	(3)	(3)	(13)	(10)
Other expense (income) - net	(32)	(17)	(58)	(39)
Equity in loss (earnings) of subsidiaries, net of tax	(219)	(64)	(434)	(315)
Intercompany expense (income) - net	(393)	(290)	(1,081)	(893)
Income before income taxes	1,146	835	2,956	2,679
Income tax expense (benefit)	53	38	119	154
Net income	1,093	797	2,837	2,525
Less net loss (income) for noncontrolling interests	0	1	(2)	(1)
Net income attributable to Eaton ordinary shareholders	1,093	798	2,835	2,524
Other comprehensive income	2	(411)	(21)	(875)
Total comprehensive income (loss) attributable to Eaton ordinary shareholders	1,095	387	2,814	1,649
Guarantors
Consolidating Statements of Comprehensive Income, Captions [Line Items]
Net sales	1,583	1,664	4,793	5,065
Cost of products sold	1,162	1,269	3,554	3,837
Selling and administrative expense	197	191	583	539
Research and development expense	43	51	138	145
Interest expense (income) - net	4	5	13	16
Other expense (income) - net	0	3	(3)	(5)
Equity in loss (earnings) of subsidiaries, net of tax	(895)	(888)	(2,384)	(2,403)
Intercompany expense (income) - net	336	258	913	1,010
Income before income taxes	736	775	1,979	1,926
Income tax expense (benefit)	10	(15)	24	(32)
Net income	726	790	1,955	1,958
Less net loss (income) for noncontrolling interests	0	0	0	0
Net income attributable to Eaton ordinary shareholders	726	790	1,955	1,958
Other comprehensive income	29	(305)	54	(691)
Total comprehensive income (loss) attributable to Eaton ordinary shareholders	755	485	2,009	1,267
Consolidating adjustments [Member]
Consolidating Statements of Comprehensive Income, Captions [Line Items]
Net sales	(1,296)	(1,321)	(3,738)	(3,999)
Cost of products sold	(1,293)	(1,317)	(3,739)	(3,959)
Selling and administrative expense	0	0	0	0
Research and development expense	0	0	0	0
Interest expense (income) - net	(1)	3	4	3
Other expense (income) - net	0	0	0	0
Equity in loss (earnings) of subsidiaries, net of tax	1,915	1,750	5,039	4,945
Intercompany expense (income) - net	0	0	0	0
Income before income taxes	(1,917)	(1,757)	(5,042)	(4,988)
Income tax expense (benefit)	(1)	2	(1)	(15)
Net income	(1,916)	(1,759)	(5,041)	(4,973)
Less net loss (income) for noncontrolling interests	1	0	3	1
Net income attributable to Eaton ordinary shareholders	(1,915)	(1,759)	(5,038)	(4,972)
Other comprehensive income	(55)	740	(101)	1,527
Total comprehensive income (loss) attributable to Eaton ordinary shareholders	$ (1,970)	$ (1,019)	$ (5,139)	$ (3,445)

XML

CONDENSED CONSOLIDATING FINANCIAL STATEMENTS - Condensed Consolidating Balance Sheets (Details) - USD ($) $ in Millions	Sep. 30, 2016	Dec. 31, 2015	Sep. 30, 2015	Dec. 31, 2014
Current assets
Cash	$ 494	$ 268	$ 418	$ 781
Short-term investments	213	177
Accounts receivable - net	3,659	3,479
Intercompany accounts receivable	0	0
Inventory	2,328	2,323
Prepaid expenses and other current assets	393	369
Total current assets	7,087	6,616
Property, plant and equipment - net	3,506	3,565
Other noncurrent assets
Goodwill	13,434	13,479
Other intangible assets	5,689	6,014
Deferred income taxes	412	362
Investment in subsidiaries	0	0
Intercompany loans receivables	0	0
Other assets	1,109	960
Total assets	31,237	30,996
Liabilities and shareholders’ equity
Short-term debt	1	426
Current portion of long-term debt	550	242
Accounts payable	1,790	1,758
Intercompany accounts payable	0	0
Accrued compensation	388	366
Other current liabilities	1,866	1,833
Total current liabilities	4,595	4,625
Noncurrent liabilities
Long-term debt	7,881	7,746
Pension liabilities	1,532	1,586
Other postretirement benefits liabilities	429	440
Deferred income taxes	366	390
Intercompany loans payable	0	0
Other noncurrent liabilities	988	978
Total noncurrent liabilities	11,196	11,140
Shareholders’ equity
Eaton shareholders' equity	15,404	15,186
Noncontrolling interests	42	45
Total equity	15,446	15,231
Total liabilities and equity	31,237	30,996
Consolidation, Eliminations [Member]
Current assets
Cash	0	0	0	0
Short-term investments	0	0
Accounts receivable - net	0	0
Intercompany accounts receivable	(8,272)	(7,659)
Inventory	(79)	(80)
Prepaid expenses and other current assets	27	23
Total current assets	(8,324)	(7,716)
Property, plant and equipment - net	0	0
Other noncurrent assets
Goodwill	0	0
Other intangible assets	0	0
Deferred income taxes	(806)	(872)
Investment in subsidiaries	(130,937)	(112,695)
Intercompany loans receivables	(65,897)	(55,049)
Other assets	0	0
Total assets	(205,964)	(176,332)
Liabilities and shareholders’ equity
Short-term debt	0	0
Current portion of long-term debt	0	0
Accounts payable	0	0
Intercompany accounts payable	(8,272)	(7,659)
Accrued compensation	0	0
Other current liabilities	(1)	(5)
Total current liabilities	(8,273)	(7,664)
Noncurrent liabilities
Long-term debt	5	1
Pension liabilities	0	0
Other postretirement benefits liabilities	0	0
Deferred income taxes	(806)	(872)
Intercompany loans payable	(65,897)	(55,049)
Other noncurrent liabilities	0	0
Total noncurrent liabilities	(66,698)	(55,920)
Shareholders’ equity
Eaton shareholders' equity	(130,998)	(112,756)
Noncontrolling interests	5	8
Total equity	(130,993)	(112,748)
Total liabilities and equity	(205,964)	(176,332)
Non-Guarantor Subsidiaries [Member]
Current assets
Cash	419	235	261	594
Short-term investments	213	175
Accounts receivable - net	2,077	1,937
Intercompany accounts receivable	3,484	2,928
Inventory	1,395	1,395
Prepaid expenses and other current assets	219	229
Total current assets	7,807	6,899
Property, plant and equipment - net	1,931	1,885
Other noncurrent assets
Goodwill	5,815	5,860
Other intangible assets	2,036	2,208
Deferred income taxes	231	218
Investment in subsidiaries	12,194	10,046
Intercompany loans receivables	56,101	44,835
Other assets	377	346
Total assets	86,492	72,297
Liabilities and shareholders’ equity
Short-term debt	1	18
Current portion of long-term debt	0	1
Accounts payable	1,116	1,106
Intercompany accounts payable	1,130	1,183
Accrued compensation	252	236
Other current liabilities	939	875
Total current liabilities	3,438	3,419
Noncurrent liabilities
Long-term debt	16	17
Pension liabilities	759	782
Other postretirement benefits liabilities	78	77
Deferred income taxes	401	447
Intercompany loans payable	1,526	1,433
Other noncurrent liabilities	430	432
Total noncurrent liabilities	3,210	3,188
Shareholders’ equity
Eaton shareholders' equity	79,807	65,653
Noncontrolling interests	37	37
Total equity	79,844	65,690
Total liabilities and equity	86,492	72,297
Guarantors [Member]
Current assets
Cash	4	7	12	13
Short-term investments	0	2
Accounts receivable - net	1,072	1,030
Intercompany accounts receivable	4,149	3,888
Inventory	647	651
Prepaid expenses and other current assets	40	40
Total current assets	5,912	5,618
Property, plant and equipment - net	712	750
Other noncurrent assets
Goodwill	6,264	6,264
Other intangible assets	3,481	3,624
Deferred income taxes	0	0
Investment in subsidiaries	72,562	60,139
Intercompany loans receivables	2,182	1,573
Other assets	129	122
Total assets	91,242	78,090
Liabilities and shareholders’ equity
Short-term debt	0	0
Current portion of long-term debt	299	240
Accounts payable	259	260
Intercompany accounts payable	2,982	2,248
Accrued compensation	51	53
Other current liabilities	297	318
Total current liabilities	3,888	3,119
Noncurrent liabilities
Long-term debt	971	675
Pension liabilities	168	165
Other postretirement benefits liabilities	114	118
Deferred income taxes	771	815
Intercompany loans payable	44,900	36,432
Other noncurrent liabilities	214	200
Total noncurrent liabilities	47,138	38,405
Shareholders’ equity
Eaton shareholders' equity	40,216	36,566
Noncontrolling interests	0	0
Total equity	40,216	36,566
Total liabilities and equity	91,242	78,090
Eaton Corporation [Member]
Current assets
Cash	70	26	145	173
Short-term investments	0	0
Accounts receivable - net	510	512
Intercompany accounts receivable	637	842
Inventory	365	357
Prepaid expenses and other current assets	107	77
Total current assets	1,689	1,814
Property, plant and equipment - net	863	930
Other noncurrent assets
Goodwill	1,355	1,355
Other intangible assets	172	182
Deferred income taxes	987	1,016
Investment in subsidiaries	13,491	12,883
Intercompany loans receivables	7,614	8,641
Other assets	603	492
Total assets	26,774	27,313
Liabilities and shareholders’ equity
Short-term debt	0	408
Current portion of long-term debt	251	1
Accounts payable	415	392
Intercompany accounts payable	3,966	4,009
Accrued compensation	85	77
Other current liabilities	630	644
Total current liabilities	5,347	5,531
Noncurrent liabilities
Long-term debt	6,889	7,053
Pension liabilities	605	639
Other postretirement benefits liabilities	237	245
Deferred income taxes	0	0
Intercompany loans payable	2,377	2,962
Other noncurrent liabilities	344	346
Total noncurrent liabilities	10,452	11,245
Shareholders’ equity
Eaton shareholders' equity	10,975	10,537
Noncontrolling interests	0	0
Total equity	10,975	10,537
Total liabilities and equity	26,774	27,313
Eaton Corporation plc [Member]
Current assets
Cash	1	0	$ 0	$ 1
Short-term investments	0	0
Accounts receivable - net	0	0
Intercompany accounts receivable	2	1
Inventory	0	0
Prepaid expenses and other current assets	0	0
Total current assets	3	1
Property, plant and equipment - net	0	0
Other noncurrent assets
Goodwill	0	0
Other intangible assets	0	0
Deferred income taxes	0	0
Investment in subsidiaries	32,690	29,627
Intercompany loans receivables	0	0
Other assets	0	0
Total assets	32,693	29,628
Liabilities and shareholders’ equity
Short-term debt	0	0
Current portion of long-term debt	0	0
Accounts payable	0	0
Intercompany accounts payable	194	219
Accrued compensation	0	0
Other current liabilities	1	1
Total current liabilities	195	220
Noncurrent liabilities
Long-term debt	0	0
Pension liabilities	0	0
Other postretirement benefits liabilities	0	0
Deferred income taxes	0	0
Intercompany loans payable	17,094	14,222
Other noncurrent liabilities	0	0
Total noncurrent liabilities	17,094	14,222
Shareholders’ equity
Eaton shareholders' equity	15,404	15,186
Noncontrolling interests	0	0
Total equity	15,404	15,186
Total liabilities and equity	$ 32,693	$ 29,628

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CONDENSED CONSOLIDATING FINANCIAL STATEMENTS - Condensed Consolidating Statements of Cash Flows (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Condensed Consolidating Statements of Cash Flows, Captions [Line Items]
Net cash provided by (used in) operating activities	$ 1,914	$ 1,629
Investing activities
Capital expenditures for property, plant and equipment	(346)	(368)
Cash received from (paid for) acquisitions of businesses, net of cash acquired	1	(38)
Sales (purchases) of short-term investments - net	(29)	76
Investments in affiliates	0	0
Return of investments in affiliates	0
Loans to affiliates	0	0
Repayments of loans from affiliates	0	0
Proceeds from sale of businesses	0	1
Other - net	3	(44)
Net cash used in investing activities	(371)	(373)
Financing activities
Proceeds from borrowings	633	1
Payments on borrowings	(666)	(405)
Proceeds from borrowings from affiliates	0	0
Payments on borrowings from affiliates	0	0
Capital contributions from affiliates	0	0
Return of capital to affiliates	0
Other intercompany financing activities	0	0
Cash dividends paid	(780)	(771)
Exercise of employee stock options	60	48
Repurchase of shares	(567)	(454)
Excess tax benefit from equity-based compensation	0
Other - net	(5)	(8)
Net cash used in financing activities	(1,325)	(1,589)
Effect of currency on cash	8	(30)
Total increase (decrease) in cash	226	(363)
Cash at the beginning of the period	268	781
Cash at the end of the period	494	418
Eaton Corporation plc [Member]
Condensed Consolidating Statements of Cash Flows, Captions [Line Items]
Net cash provided by (used in) operating activities	(158)	(85)
Investing activities
Capital expenditures for property, plant and equipment	0	0
Cash received from (paid for) acquisitions of businesses, net of cash acquired	0	0
Sales (purchases) of short-term investments - net	0	0
Investments in affiliates	(1,250)	(1,482)
Return of investments in affiliates	0
Loans to affiliates	0	0
Repayments of loans from affiliates	0	0
Proceeds from sale of businesses		0
Other - net	0	0
Net cash used in investing activities	(1,250)	(1,482)
Financing activities
Proceeds from borrowings	0	0
Payments on borrowings	0	0
Proceeds from borrowings from affiliates	3,333	2,783
Payments on borrowings from affiliates	(637)	(40)
Capital contributions from affiliates	0	0
Return of capital to affiliates	0
Other intercompany financing activities	0	0
Cash dividends paid	(780)	(771)
Exercise of employee stock options	60	48
Repurchase of shares	(567)	(454)
Excess tax benefit from equity-based compensation	0
Other - net	0	0
Net cash used in financing activities	1,409	1,566
Effect of currency on cash	0	0
Total increase (decrease) in cash	1	(1)
Cash at the beginning of the period	0	1
Cash at the end of the period	1	0
Eaton Corporation [Member]
Condensed Consolidating Statements of Cash Flows, Captions [Line Items]
Net cash provided by (used in) operating activities	(29)	(93)
Investing activities
Capital expenditures for property, plant and equipment	(62)	(68)
Cash received from (paid for) acquisitions of businesses, net of cash acquired	0	0
Sales (purchases) of short-term investments - net	0	0
Investments in affiliates	0	0
Return of investments in affiliates	0
Loans to affiliates	(287)	(307)
Repayments of loans from affiliates	1,288	306
Proceeds from sale of businesses		0
Other - net	0	(41)
Net cash used in investing activities	939	(110)
Financing activities
Proceeds from borrowings	22	0
Payments on borrowings	(408)	(102)
Proceeds from borrowings from affiliates	2,815	4,577
Payments on borrowings from affiliates	(3,453)	(4,617)
Capital contributions from affiliates	0	1,176
Return of capital to affiliates	0
Other intercompany financing activities	158	(859)
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	0
Net cash used in financing activities	(866)	175
Effect of currency on cash	0	0
Total increase (decrease) in cash	44	(28)
Cash at the beginning of the period	26	173
Cash at the end of the period	70	145
Guarantors [Member]
Condensed Consolidating Statements of Cash Flows, Captions [Line Items]
Net cash provided by (used in) operating activities	(283)	(23)
Investing activities
Capital expenditures for property, plant and equipment	(75)	(100)
Cash received from (paid for) acquisitions of businesses, net of cash acquired	1	0
Sales (purchases) of short-term investments - net	2	0
Investments in affiliates	(120)	(1,176)
Return of investments in affiliates	47
Loans to affiliates	(655)	(39)
Repayments of loans from affiliates	0	58
Proceeds from sale of businesses		0
Other - net	30	33
Net cash used in investing activities	(770)	(1,224)
Financing activities
Proceeds from borrowings	611	0
Payments on borrowings	(240)	(301)
Proceeds from borrowings from affiliates	1,051	581
Payments on borrowings from affiliates	(1,658)	(1,160)
Capital contributions from affiliates	1,370	1,482
Return of capital to affiliates	0
Other intercompany financing activities	(81)	644
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	(3)	0
Net cash used in financing activities	1,050	1,246
Effect of currency on cash	0	0
Total increase (decrease) in cash	(3)	(1)
Cash at the beginning of the period	7	13
Cash at the end of the period	4	12
Other subsidiaries [Member]
Condensed Consolidating Statements of Cash Flows, Captions [Line Items]
Net cash provided by (used in) operating activities	2,384	1,830
Investing activities
Capital expenditures for property, plant and equipment	(209)	(200)
Cash received from (paid for) acquisitions of businesses, net of cash acquired	0	(38)
Sales (purchases) of short-term investments - net	(31)	76
Investments in affiliates	(1,370)	(1,482)
Return of investments in affiliates	0
Loans to affiliates	(6,457)	(7,638)
Repayments of loans from affiliates	4,501	5,514
Proceeds from sale of businesses		1
Other - net	(27)	(36)
Net cash used in investing activities	(3,593)	(3,803)
Financing activities
Proceeds from borrowings	0	1
Payments on borrowings	(18)	(2)
Proceeds from borrowings from affiliates	200	43
Payments on borrowings from affiliates	(41)	(61)
Capital contributions from affiliates	1,370	1,482
Return of capital to affiliates	(47)
Other intercompany financing activities	(77)	215
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	(2)	(8)
Net cash used in financing activities	1,385	1,670
Effect of currency on cash	8	(30)
Total increase (decrease) in cash	184	(333)
Cash at the beginning of the period	235	594
Cash at the end of the period	419	261
Consolidation, Eliminations [Member]
Condensed Consolidating Statements of Cash Flows, Captions [Line Items]
Net cash provided by (used in) operating activities	0	0
Investing activities
Capital expenditures for property, plant and equipment	0	0
Cash received from (paid for) acquisitions of businesses, net of cash acquired	0	0
Sales (purchases) of short-term investments - net	0	0
Investments in affiliates	2,740	4,140
Return of investments in affiliates	(47)
Loans to affiliates	7,399	7,984
Repayments of loans from affiliates	(5,789)	(5,878)
Proceeds from sale of businesses		0
Other - net	0	0
Net cash used in investing activities	4,303	6,246
Financing activities
Proceeds from borrowings	0	0
Payments on borrowings	0	0
Proceeds from borrowings from affiliates	(7,399)	(7,984)
Payments on borrowings from affiliates	5,789	5,878
Capital contributions from affiliates	(2,740)	(4,140)
Return of capital to affiliates	47
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	0
Net cash used in financing activities	(4,303)	(6,246)
Effect of currency on cash	0	0
Total increase (decrease) in cash	0	0
Cash at the beginning of the period	0	0
Cash at the end of the period	$ 0	$ 0