


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