10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

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

For the quarterly period ended June 30, 2017

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	D04 Y0C2
(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, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer," “smaller reporting company,” and "emerging growth 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	Emerging growth company o	(Do not check if a smaller reporting company)

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange

Act. o

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 444.8 million Ordinary Shares outstanding as of June 30, 2017.

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	25
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	31
ITEM 4. CONTROLS AND PROCEDURES	31
PART II — OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS	31
ITEM 1A. RISK FACTORS	31
ITEM 2. UNRESTRICTED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS	32
ITEM 5. OTHER INFORMATION	32
ITEM 6. EXHIBITS	32
SIGNATURES	33
EXHIBIT INDEX	34
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 June 30						Six months ended June 30
(In millions except for per share data)	2017			2016			2017			2016
Net sales	$	5,132		$	5,080		$	9,980		$	9,893
Cost of products sold	3,450			3,419			6,760			6,710
Selling and administrative expense	902			897			1,787			1,789
Research and development expense	150			149			293			298
Interest expense - net	60			57			121			114
Other expense (income) - net	—			5			(15		)	(13		)
Income before income taxes	570			553			1,034			995
Income tax expense	54			61			86			100
Net income	516			492			948			895
Less net income for noncontrolling interests	(1		)	(1		)	(1		)	—
Net income attributable to Eaton ordinary shareholders	$	515		$	491		$	947		$	895
Net income per share attributable to Eaton ordinary shareholders
Diluted	$	1.15		$	1.07		$	2.10		$	1.95
Basic	1.15			1.08			2.12			1.96
Weighted-average number of ordinary shares outstanding
Diluted	448.6			458.3			449.8			459.0
Basic	446.3			457.0			447.5			457.8
Cash dividends declared per ordinary share	$	0.60		$	0.57		$	1.20		$	1.14

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

2

EATON CORPORATION plc

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

	Three months ended June 30						Six months ended June 30
(In millions)	2017			2016			2017			2016
Net income	$	516		$	492		$	948		$	895
Less net income for noncontrolling interests	(1		)	(1		)	(1		)	—
Net income attributable to Eaton ordinary shareholders	515			491			947			895
Other comprehensive income (loss), net of tax
Currency translation and related hedging instruments	320			(296		)	548			(35		)
Pensions and other postretirement benefits	4			53			37			87
Cash flow hedges	(1		)	(12		)	1			(34		)
Other comprehensive income (loss) attributable to Eaton    ordinary shareholders	323			(255		)	586			18
Total comprehensive income attributable to Eaton   ordinary shareholders	$	838		$	236		$	1,533		$	913

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

3

EATON CORPORATION plc

CONDENSED CONSOLIDATED BALANCE SHEETS

(In millions)	June 30, 2017			December 31, 2016
Assets
Current assets
Cash	$	312		$	543
Short-term investments	525			203
Accounts receivable - net	3,813			3,560
Inventory	2,393			2,254
Prepaid expenses and other current assets	444			381
Total current assets	7,487			6,941
Property, plant and equipment
Land and buildings	2,455			2,369
Machinery and equipment	5,934			5,670
Gross property, plant and equipment	8,389			8,039
Accumulated depreciation	(4,859		)	(4,596		)
Net property, plant and equipment	3,530			3,443
Other noncurrent assets
Goodwill	13,478			13,201
Other intangible assets	5,410			5,514
Deferred income taxes	443			360
Other assets	1,007			960
Total assets	$	31,355		$	30,419
Liabilities and shareholders’ equity
Current liabilities
Short-term debt	$	846		$	14
Current portion of long-term debt	1,495			1,552
Accounts payable	1,885			1,718
Accrued compensation	338			379
Other current liabilities	1,745			1,822
Total current liabilities	6,309			5,485
Noncurrent liabilities
Long-term debt	6,264			6,711
Pension liabilities	1,578			1,659
Other postretirement benefits liabilities	364			368
Deferred income taxes	316			321
Other noncurrent liabilities	930			934
Total noncurrent liabilities	9,452			9,993
Shareholders’ equity
Eaton shareholders’ equity	15,552			14,897
Noncontrolling interests	42			44
Total equity	15,594			14,941
Total liabilities and equity	$	31,355		$	30,419

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

4

EATON CORPORATION plc

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

	Six months ended June 30
(In millions)	2017			2016
Operating activities
Net income	$	948		$	895
Adjustments to reconcile to net cash provided by operating activities
Depreciation and amortization	453			467
Deferred income taxes	(107		)	(74		)
Pension and other postretirement benefits expense	104			116
Contributions to pension plans	(160		)	(74		)
Contributions to other postretirement benefits plans	(11		)	(18		)
Changes in working capital	(376		)	(256		)
Other - net	186			77
Net cash provided by operating activities	1,037			1,133
Investing activities
Capital expenditures for property, plant and equipment	(246		)	(246		)
Cash received from acquisitions of businesses, net of cash acquired	—			1
Sale (purchases) of short-term investments - net	(309		)	38
Other - net	(31		)	3
Net cash used in investing activities	(586		)	(204		)
Financing activities
Proceeds from borrowings	832			151
Payments on borrowings	(543		)	(240		)
Cash dividends paid	(537		)	(521		)
Exercise of employee stock options	49			37
Repurchase of shares	(465		)	(295		)
Employee taxes paid from shares withheld	(21		)	(17		)
Other - net	(4		)	3
Net cash used in financing activities	(689		)	(882		)
Effect of currency on cash	7			8
Total (decrease) increase in cash	(231		)	55
Cash at the beginning of the period	543			268
Cash at the end of the period	$	312		$	323

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

5

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 2016 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 2017, the Company adopted Accounting Standards Update 2016-09, Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting, (ASU 2016-09). Upon adoption, the Company recorded deferred tax assets of $48 for all excess tax benefits that had not been previously recognized. This was accomplished through a cumulative-effect adjustment to retained earnings. ASU 2016-09 also requires that all excess tax benefits and deficiencies generated in the current and future periods be recorded as income tax benefit or expense in the reporting period in which they occur. These excess tax benefits and deficiencies, which were previously required to be presented as financing activities on the Company’s Condensed Consolidated Statements of Cash Flows, are now classified as operating activities prospectively. The Company also reclassified $21 and $17 for the first six months of 2017 and 2016, respectively, from operating activities to financing activities on the Company’s Condensed Consolidated Statements of Cash Flows for withholding payments made to taxing authorities from shares withheld from employees. The Company will continue to estimate forfeitures as part of recording equity-based compensation expense.

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

Recently Issued Accounting Pronouncements

In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update 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.

A cross-functional implementation team has been established consisting of representatives from all of our business segments to review current accounting policies and practices to identify potential differences that would result from applying the requirements of the new standard to revenue contracts. The implementation team performed a review of samples of customer contracts across the Company’s significant revenue streams. Based on this evaluation, most of the revenue streams will be recorded consistently under both the current and new standards. Certain revenue streams will move from point-in-time or multiple elements to over time because of the continuous transfer of control to customers. The Company is also in the process of identifying and implementing the appropriate changes to business processes and controls to support recognition and disclosure under the new standard, including evaluating new qualitative and quantitative disclosures that will include information on the nature, amount, timing and significant judgments impacting revenue from contracts with customers. Eaton plans to adopt the standard as of the first quarter of 2018 using the modified retrospective approach and will record a cumulative adjustment to equity for open contracts as of January 1, 2018. Eaton is continuing to evaluate the impact of ASU 2014-09 and an estimate of the impact to the consolidated financial statements cannot be made at this time.

In February 2016, the Financial Accounting Standards Board 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.

6

Note 2. FORMATION OF A JOINT VENTURE

On July 31, 2017, Eaton and Cummins, Inc. formed a joint venture for automated transmissions for heavy-duty and medium-duty commercial vehicles. The joint venture is named Eaton Cummins Automated Transmission Technologies. Cummins, Inc. and Eaton each own 50% of the new joint venture. Eaton will account for the joint venture on the equity method of accounting. Eaton received $600 in cash from Cummins, Inc. for a 50% interest in the joint venture. The Company is currently assessing the impact of the transaction to the consolidated financial statements.

Note 3. ACQUISITION INTEGRATION CHARGES

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

	Three months ended June 30				Six months ended June 30
	2017		2016		2017		2016
Electrical Products	$	1	$	1	$	2	$	1
Electrical Systems and Services	—		—		—		1
Total acquisition integration charges before income taxes	1		1		2		2
Income taxes	1		—		1		1
Total after income taxes	$	—	$	1	$	1	$	1
Per ordinary share - diluted	$	—	$	—	$	—	$	—

Business segment acquisition integration charges in 2017 related to the integration of Ephesus Lighting, Inc. (Ephesus), which was acquired in 2015. The charges associated with Ephesus were included in Selling and administrative expense. Business segment acquisition integration charges in 2016 related to the integration of Ephesus and Oxalis Group Ltd. (Oxalis), which was acquired in 2015. The charges associated with Ephesus and Oxalis were included in Selling and administrative expense and Cost of products sold, respectively. In Business Segment Information, the charges reduced Operating profit of the related business segment. See Note 13 for additional information about business segments.

Note 4. RESTRUCTURING CHARGES

During 2015, Eaton announced its commitment to undertake actions to reduce its cost structure in all business segments and at corporate. Restructuring charges incurred for the three and six months ended June 30, 2017, were $33 and $53, respectively, and were $35 and $98 for the three and six months ended June 30, 2016, respectively. The charges associated with restructuring activities are anticipated to be $100 in 2017.

A summary of restructuring charges by type follows:

	Three months ended June 30				Six months ended June 30
	2017		2016		2017		2016
Workforce reductions	$	17	$	20	$	25	$	77
Plant closings and other	16		15		28		21
Total	$	33	$	35	$	53	$	98

7

A summary of restructuring charges by segment follows:

	Three months ended June 30				Six months ended June 30
	2017		2016		2017		2016
Electrical Products	$	11	$	9	$	14	$	26
Electrical Systems & Services	5		3		7		13
Hydraulics	8		18		17		34
Aerospace	—		—		1		4
Vehicle	3		5		5		17
Corporate	6		—		9		4
Total	$	33	$	35	$	53	$	98

A summary of liabilities related to workforce reductions, plant closings and other associated costs announced in 2015 follows:

	Workforce reductions			Plant closings and other			Total
Balance at December 31, 2015	$	54		$	—		$	54
Liability recognized	177			34			211
Payments	(116		)	(13		)	(129		)
Other adjustments	(2		)	(20		)	(22		)
Balance at December 31, 2016	113			1			114
Liability recognized	25			28			53
Payments	(56		)	(15		)	(71		)
Other adjustments	(3		)	(9		)	(12		)
Balance at June 30, 2017	$	79		$	5		$	84

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 13 for additional information about business segments.

Note 5. GOODWILL

Change in the carrying amount of goodwill by segment follows:

	Electrical Products		Electrical Systems and Services		Hydraulics		Aerospace		Vehicle		Total
December 31, 2016	$	6,497	$	4,203	$	1,221	$	938	$	342	$	13,201
Translation	166		79		24		5		3		277
June 30, 2017	$	6,663	$	4,282	$	1,245	$	943	$	345	$	13,478

8

Note 6.    RETIREMENT BENEFITS PLANS

The components of retirement benefits expense follow:

	United States pension benefit expense						Non-United States pension benefit expense						Other postretirement benefits expense
	Three months ended June 30
	2017			2016			2017			2016			2017			2016
Service cost	$	24		$	27		$	18		$	17		$	—		$	1
Interest cost	31			32			14			16			4			5
Expected return on plan assets	(61		)	(62		)	(23		)	(24		)	(1		)	(2		)
Amortization	21			23			12			8			(3		)	(2		)
	15			20			21			17			—			2
Settlements and special termination benefits	17			18			—			—			—			—
Total expense	$	32		$	38		$	21		$	17		$	—		$	2
	United States pension benefit expense						Non-United States pension benefit expense						Other postretirement benefits expense
	Six months ended June 30
	2017			2016			2017			2016			2017			2016
Service cost	$	48		$	55		$	35		$	33		$	1		$	2
Interest cost	62			63			27			32			7			9
Expected return on plan assets	(122		)	(125		)	(46		)	(48		)	(2		)	(3		)
Amortization	41			46			25			17			(6		)	(4		)
	29			39			41			34			—			4
Settlements and special termination benefits	34			39			—			—			—			—
Total expense	$	63		$	78		$	41		$	34		$	—		$	4

Note 7. LEGAL CONTINGENCIES

Eaton is subject to a broad range of claims, administrative and legal proceedings such as lawsuits that relate to contractual allegations, tax audits, patent infringement, personal injuries, antitrust matters and employment-related matters. Eaton is also subject to asbestos claims from historic products which may have contained asbestos. Insurance may cover some of the costs associated with these claims and proceedings. 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 8. INCOME TAXES

The effective income tax rate for second quarter and first six months of 2017 was expense of 10% and 8%, respectively, compared to expense of 11% and 10% for the second quarter and first six months of 2016.  The decreases in the effective tax rate in the second quarter and the first six months of 2017 were due to the resolution of tax contingencies in lower tax jurisdictions and the excess tax benefits recognized for employee share-based payments pursuant to the adoption of ASU 2016-09 as discussed in Note 1.

9

On July 26, 2017, the United States Tax Court issued a ruling in the previously-disclosed dispute between Eaton Corporation, a subsidiary of the Company ( “Eaton Corp”) and the Internal Revenue Service (the "IRS"). As the Company has previously disclosed, the IRS issued a Notice in 2011 for Eaton Corp’s 2005 and 2006 tax years proposing assessments of $75 million in additional taxes plus $52 million in penalties related primarily to transfer pricing adjustments for products manufactured in Eaton Corp’s facilities in Puerto Rico and the Dominican Republic and sold to affiliated companies located in the U.S. As previously disclosed, the IRS also proposed adjustments related to the same transfer pricing issue in another Notice issued in 2014 for the 2007 through 2010 tax years. Eaton Corp has set its transfer prices for products sold between these affiliates at the same prices that it sells such products to third parties as required by two successive Advance Pricing Agreements (APAs) Eaton Corp entered into with the IRS. The IRS cancelled the APAs and made the proposed adjustments in the 2011 and 2014 Notices, which Eaton Corp disputed in the Tax Court. The Tax Court case involved both whether the APAs should be enforced and, if not, the appropriate transfer pricing methodology. The Tax Court held a trial for the 2005 and 2006 tax years, the outcome of which also applies to the transfer pricing matter in the 2007 through 2010 tax years.

The Tax Court agreed with Eaton Corp that the IRS must abide by the terms of the APAs for the tax years 2005-06, a finding that is also applicable to the 2007-2010 years. The Tax Court’s ruling on the APAs is not expected to have a material impact on Eaton’s consolidated financial statements.

Note 9. EQUITY

On October 22, 2013, Eaton's Board of Directors adopted a share repurchase program (the 2013 Program). Under the 2013 Program, the ordinary shares were expected to be repurchased over time, depending on market conditions, the market price of ordinary shares, capital levels, and other considerations. 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. 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 six months ended June 30, 2017, 2.7 million and 6.3 million ordinary shares, respectively, were repurchased under the 2016 Program in the open market at a total cost of $210 and $465, respectively. During the three and six months ended June 30, 2016, 3.7 million and 4.0 million ordinary shares, respectively, were repurchased under the 2016 Program in the open market at a total cost of $224 and $242, respectively.

The changes in Shareholders’ equity follow:

	Eaton shareholders’ equity			Noncontrolling interests			Total equity
Balance at December 31, 2016	$	14,897		$	44		$	14,941
Cumulative-effect adjustment upon adoption of ASU 2016-09	48			—			48
Net income	947			1			948
Other comprehensive income	586			—			586
Cash dividends paid	(537		)	(3		)	(540		)
Issuance of shares under equity-based compensation plans - net	76			—			76
Repurchase of shares	(465		)	—			(465		)
Balance at June 30, 2017	$	15,552		$	42		$	15,594

10

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, 2016	$	(3,062	)	$	(1,380	)	$	(6	)	$	(4,448	)
Other comprehensive (loss) income    before reclassifications	548			(27		)	(3		)	518
Amounts reclassified from Accumulated other    comprehensive loss (income)	—			64			4			68
Net current-period Other comprehensive    income (loss)	548			37			1			586
Balance at June 30, 2017	$	(2,514	)	$	(1,343	)	$	(5	)	$	(3,862	)

The reclassifications out of Accumulated other comprehensive loss follow:

	Six months ended June 30, 2017				Consolidated statements of income classification
Amortization of defined benefit pensions and other postretirement benefits items
Actuarial loss and prior service cost	$	(94	)	1
Tax benefit	30
Total, net of tax	(64		)
Gains and (losses) on cash flow hedges
Currency exchange contracts	(5		)		Cost of products sold
Tax benefit	1
Total, net of tax	(4		)
Total reclassifications for the period	$	(68	)

¹ These components of Accumulated other comprehensive loss are included in the computation of net periodic benefit cost. See Note 6 for additional information about pension and other 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 June 30				Six months ended June 30
(Shares in millions)	2017		2016		2017		2016
Net income attributable to Eaton ordinary shareholders	$	515	$	491	$	947	$	895
Weighted-average number of ordinary shares outstanding - diluted	448.6		458.3		449.8		459.0
Less dilutive effect of equity-based compensation	2.3		1.3		2.3		1.2
Weighted-average number of ordinary shares outstanding - basic	446.3		457.0		447.5		457.8
Net income per share attributable to Eaton ordinary shareholders
Diluted	$	1.15	$	1.07	$	2.10	$	1.95
Basic	1.15		1.08		2.12		1.96

For the second quarter and first six months of 2017, 0.2 million and 0.7 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 second quarter and first six months of 2016, 1.5 million and 1.9 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.

11

Note 10. FAIR VALUE MEASUREMENTS

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

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

	Total			Level 1		Level 2			Level 3
June 30, 2017
Cash	$	312		$	312	$	—		$	—
Short-term investments	525			525		—			—
Net derivative contracts	64			—		64			—
December 31, 2016
Cash	$	543		$	543	$	—		$	—
Short-term investments	203			203		—			—
Net derivative contracts	(3		)	—		(3		)	—

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 $7,759 and fair value of $8,093 at June 30, 2017 compared to $8,263 and $8,477, respectively, at December 31, 2016. 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.

12

Note 11. DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES

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

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

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

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

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

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 $89 at June 30, 2017 and $86 at December 31, 2016, and designated on a pre-tax basis was $620 at June 30, 2017 and $572 at December 31, 2016.

13

Derivative Financial Statement Impacts

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

	Notional amount		Other  current assets		Other noncurrent assets		Other current liabilities		Other noncurrent liabilities		Type of hedge	Term
June 30, 2017
Derivatives designated as hedges
Fixed-to-floating interest rate  swaps	$	3,715	$	3	$	60	$	1	$	7	Fair value	4 months to 18 years
Forward starting floating-to-fixed  interest rate swaps	450		—		14		—		1		Cash flow	10 years
Interest rate locks	350		—		1		—		1		Cash flow	10 to 30 years
Currency exchange contracts	849		6		2		21		8		Cash flow	1 to 36 months
Total			$	9	$	77	$	22	$	17
Derivatives not designated as  hedges
Currency exchange contracts	$	2,626	$	43			$	26				1 to 12 months
Commodity contracts	4		—				—					1 to 12 months
Total			$	43			$	26
December 31, 2016
Derivatives designated as hedges
Fixed-to-floating interest rate  swaps	$	3,765	$	1	$	65	$	—	$	8	Fair value	3 months to 18 years
Forward starting floating-to-fixed  interest rate swaps	450		—		19		—		1		Cash flow	11 years
Currency exchange contracts	802		11		1		22		17		Cash flow	1 to 36 months
Total			$	12	$	85	$	22	$	26
Derivatives not designated as  hedges
Currency exchange contracts	$	5,333	$	31			$	85				1 to 12 months
Commodity contracts	10		2				—					1 to 12 months
Total			$	33			$	85

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.

14

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 June 30							Three months ended June 30
	2017			2016				2017			2016
Derivatives designated as    cash flow hedges
Forward starting floating-to-fixed  interest rate swaps	$	(5	)	$	(10	)	Interest expense - net	$	—		$	—
Currency exchange contracts	2			(10		)	Cost of products sold	(1		)	(2		)
Total	$	(3	)	$	(20	)		$	(1	)	$	(2	)
	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
	Six months ended June 30							Six months ended June 30
	2017			2016				2017			2016
Derivatives designated as cash flow hedges
Forward starting floating-to-fixed interest rate swaps	$	(5	)	$	(19	)	Interest expense - net	$	—		$	—
Currency exchange contracts	1			(32		)	Cost of products sold	(5		)	1
Total	$	(4	)	$	(51	)		$	(5	)	$	1

Amounts recognized in net income follow:

	Three months ended June 30						Six months ended June 30
	2017			2016			2017			2016
Derivatives designated as fair value hedges
Fixed-to-floating interest rate swaps	$	8		$	30		$	(3	)	$	106
Related long-term debt converted to floating interest    rates by interest rate swaps	(8		)	(30		)	3			(106		)
	$	—		$	—		$	—		$	—

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

15

Note 12. INVENTORY

Inventory accounted for using the first-in, first out (FIFO) method is carried at lower of cost or net realizable value. Inventory accounted for using the last-in, first-out (LIFO) method is carried at lower of cost or market. The components of inventory follow:

	June 30, 2017			December 31, 2016
Raw materials	$	924		$	880
Work-in-process	432			396
Finished goods	1,137			1,074
Inventory at FIFO	2,493			2,350
Excess of FIFO over LIFO cost	(100		)	(96		)
Total inventory	$	2,393		$	2,254

16

Note 13. BUSINESS SEGMENT INFORMATION

Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated on a regular basis by the chief operating decision maker, or decision making group, in deciding how to allocate resources to an individual segment and in assessing performance. Eaton’s operating segments are Electrical Products, Electrical Systems and Services, Hydraulics, Aerospace and Vehicle. Operating profit includes the operating profit from intersegment sales. For additional information regarding Eaton’s business segments, see Note 15 to the Consolidated Financial Statements contained in the 2016 Form 10-K.

	Three months ended June 30						Six months ended June 30
	2017			2016			2017			2016
Net sales
Electrical Products	$	1,802		$	1,784		$	3,514		$	3,464
Electrical Systems and Services	1,414			1,429			2,747			2,771
Hydraulics	633			589			1,220			1,140
Aerospace	437			447			865			892
Vehicle	846			831			1,634			1,626
Total net sales	$	5,132		$	5,080		$	9,980		$	9,893
Segment operating profit
Electrical Products	$	314		$	322		$	611		$	593
Electrical Systems and Services	194			178			349			337
Hydraulics	74			59			134			100
Aerospace	81			83			160			163
Vehicle	139			137			247			255
Total segment operating profit	802			779			1,501			1,448
Corporate
Amortization of intangible assets	(96		)	(98		)	(190		)	(198		)
Interest expense - net	(60		)	(57		)	(121		)	(114		)
Pension and other postretirement benefits expense	(11		)	(13		)	(22		)	(27		)
Other corporate expense - net	(65		)	(58		)	(134		)	(114		)
Income before income taxes	570			553			1,034			995
Income tax expense	54			61			86			100
Net income	516			492			948			895
Less net income for noncontrolling interests	(1		)	(1		)	(1		)	—
Net income attributable to Eaton ordinary shareholders	$	515		$	491		$	947		$	895

17

Note 14. 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 2017 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.

18

CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME FOR THE THREE MONTHS ENDED JUNE 30, 2017
	Eaton Corporation plc			Eaton Corporation			Guarantors			Other subsidiaries			Consolidating adjustments			Total
Net sales	$	—		$	1,696		$	1,672		$	3,164		$	(1,400	)	$	5,132
Cost of products sold	—			1,373			1,225			2,248			(1,396		)	3,450
Selling and administrative expense	34			342			197			329			—			902
Research and development expense	—			57			53			40			—			150
Interest expense (income) - net	—			58			6			(4		)	—			60
Other expense (income) - net	41			7			(37		)	(11		)	—			—
Equity in loss (earnings) of    subsidiaries, net of tax	(704		)	(185		)	(853		)	(114		)	1,856			—
Intercompany expense (income) - net	114			(34		)	339			(419		)	—			—
Income (loss) before income taxes	515			78			742			1,095			(1,860		)	570
Income tax expense (benefit)	—			3			3			51			(3		)	54
Net income (loss)	515			75			739			1,044			(1,857		)	516
Less net loss (income) for    noncontrolling interests	—			—			—			(1		)	—			(1		)
Net income (loss) attributable to    Eaton ordinary shareholders	$	515		$	75		$	739		$	1,043		$	(1,857	)	$	515
Other comprehensive income (loss)	$	323		$	(10	)	$	322		$	408		$	(720	)	$	323
Total comprehensive income   (loss) attributable to Eaton   ordinary shareholders	$	838		$	65		$	1,061		$	1,451		$	(2,577	)	$	838

CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME FOR THE THREE MONTHS ENDED JUNE 30, 2016
	Eaton Corporation plc			Eaton Corporation			Guarantors			Other subsidiaries			Consolidating adjustments			Total
Net sales	$	—		$	1,644		$	1,648		$	3,057		$	(1,269	)	$	5,080
Cost of products sold	—			1,263			1,203			2,224			(1,271		)	3,419
Selling and administrative expense	2			351			198			346			—			897
Research and development expense	—			55			47			47			—			149
Interest expense (income) - net	—			57			6			(7		)	1			57
Other expense (income) - net	—			3			6			(4		)	—			5
Equity in loss (earnings) of    subsidiaries, net of tax	(594		)	(154		)	(811		)	(132		)	1,691			—
Intercompany expense (income) - net	101			(34		)	313			(380		)	—			—
Income (loss) before income taxes	491			103			686			963			(1,690		)	553
Income tax expense (benefit)	—			13			12			36			—			61
Net income (loss)	491			90			674			927			(1,690		)	492
Less net loss (income) for    noncontrolling interests	—			—			—			(2		)	1			(1		)
Net income (loss) attributable to    Eaton ordinary shareholders	$	491		$	90		$	674		$	925		$	(1,689	)	$	491
Other comprehensive income (loss)	$	(255	)	$	—		$	(248	)	$	(319	)	$	567		$	(255	)
Total comprehensive income    (loss) attributable to Eaton    ordinary shareholders	$	236		$	90		$	426		$	606		$	(1,122	)	$	236

19

CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME FOR THE SIX MONTHS ENDED JUNE 30, 2017
	Eaton Corporation plc			Eaton Corporation			Guarantors			Other subsidiaries			Consolidating adjustments			Total
Net sales	$	—		$	3,268		$	3,267		$	6,155		$	(2,710	)	$	9,980
Cost of products sold	—			2,626			2,413			4,429			(2,708		)	6,760
Selling and administrative expense	66			668			391			662			—			1,787
Research and development expense	—			111			100			82			—			293
Interest expense (income) - net	—			118			11			(8		)	—			121
Other expense (income) - net	48			7			(38		)	(32		)	—			(15		)
Equity in loss (earnings) of    subsidiaries, net of tax	(1,285		)	(375		)	(1,725		)	(225		)	3,610			—
Intercompany expense (income) - net	224			(73		)	672			(823		)	—			—
Income (loss) before income taxes	947			186			1,443			2,070			(3,612		)	1,034
Income tax expense (benefit)	—			—			19			68			(1		)	86
Net income (loss)	947			186			1,424			2,002			(3,611		)	948
Less net loss (income) for    noncontrolling interests	—			—			—			(2		)	1			(1		)
Net income (loss) attributable to    Eaton ordinary shareholders	$	947		$	186		$	1,424		$	2,000		$	(3,610	)	$	947
Other comprehensive income (loss)	$	586		$	50		$	592		$	731		$	(1,373	)	$	586
Total comprehensive income    (loss) attributable to Eaton    ordinary shareholders	$	1,533		$	236		$	2,016		$	2,731		$	(4,983	)	$	1,533

CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME FOR THE SIX MONTHS ENDED JUNE 30, 2016
	Eaton Corporation plc			Eaton Corporation			Guarantors			Other subsidiaries			Consolidating adjustments			Total
Net sales	$	—		$	3,182		$	3,223		$	5,930		$	(2,442	)	$	9,893
Cost of products sold	—			2,459			2,403			4,294			(2,446		)	6,710
Selling and administrative expense	4			716			394			675			—			1,789
Research and development expense	—			117			96			85			—			298
Interest expense (income) - net	—			110			9			(10		)	5			114
Other expense (income) - net	—			1			4			(18		)	—			(13		)
Equity in loss (earnings) of    subsidiaries, net of tax	(1,098		)	(322		)	(1,484		)	(229		)	3,133			—
Intercompany expense (income) - net	199			(70		)	568			(697		)	—			—
Income (loss) before income taxes	895			171			1,233			1,830			(3,134		)	995
Income tax expense (benefit)	—			20			13			67			—			100
Net income (loss)	895			151			1,220			1,763			(3,134		)	895
Less net loss (income) for    noncontrolling interests	—			—			—			(2		)	2			—
Net income (loss) attributable to    Eaton ordinary shareholders	$	895		$	151		$	1,220		$	1,761		$	(3,132	)	$	895
Other comprehensive income (loss)	$	18		$	44		$	30		$	(10	)	$	(64	)	$	18
Total comprehensive income (loss) attributable to Eaton ordinary shareholders	$	913		$	195		$	1,250		$	1,751		$	(3,196	)	$	913

20

CONDENSED CONSOLIDATING BALANCE SHEETS JUNE 30, 2017
	Eaton Corporation plc		Eaton Corporation		Guarantors		Other subsidiaries		Consolidating adjustments			Total
Assets
Current assets
Cash	$	—	$	19	$	5	$	288	$	—		$	312
Short-term investments	—		—		—		525		—			525
Accounts receivable - net	—		525		1,169		2,119		—			3,813
Intercompany accounts    receivable	2		752		3,524		3,596		(7,874		)	—
Inventory	—		332		655		1,487		(81		)	2,393
Prepaid expenses and    other current assets	—		108		48		261		27			444
Total current assets	2		1,736		5,401		8,276		(7,928		)	7,487
Property, plant and    equipment - net	—		843		696		1,991		—			3,530
Other noncurrent assets
Goodwill	—		1,355		6,293		5,830		—			13,478
Other intangible assets	—		162		3,351		1,897		—			5,410
Deferred income taxes	—		927		—		243		(727		)	443
Investment in subsidiaries	34,028		13,827		74,853		12,886		(135,594		)	—
Intercompany loans receivable	—		7,695		2,481		57,519		(67,695		)	—
Other assets	—		504		141		362		—			1,007
Total assets	$	34,030	$	27,049	$	93,216	$	89,004	$	(211,944	)	$	31,355
Liabilities and    shareholders’ equity
Current liabilities
Short-term debt	$	—	$	811	$	—	$	35	$	—		$	846
Current portion of    long-term debt	—		1,456		36		3		—			1,495
Accounts payable	—		457		266		1,162		—			1,885
Intercompany accounts payable	216		3,232		3,213		1,213		(7,874		)	—
Accrued compensation	—		78		42		218		—			338
Other current liabilities	1		536		300		910		(2		)	1,745
Total current liabilities	217		6,570		3,857		3,541		(7,876		)	6,309
Noncurrent liabilities
Long-term debt	—		5,310		946		8		—			6,264
Pension liabilities	—		531		137		910		—			1,578
Other postretirement    benefits liabilities	—		194		98		72		—			364
Deferred income taxes	—		—		680		363		(727		)	316
Intercompany loans payable	18,261		2,374		45,618		1,442		(67,695		)	—
Other noncurrent liabilities	—		321		225		384		—			930
Total noncurrent liabilities	18,261		8,730		47,704		3,179		(68,422		)	9,452
Shareholders’ equity
Eaton shareholders' equity	15,552		11,749		41,655		82,247		(135,651		)	15,552
Noncontrolling interests	—		—		—		37		5			42
Total equity	15,552		11,749		41,655		82,284		(135,646		)	15,594
Total liabilities and equity	$	34,030	$	27,049	$	93,216	$	89,004	$	(211,944	)	$	31,355

21

CONDENSED CONSOLIDATING BALANCE SHEETS DECEMBER 31, 2016
	Eaton Corporation plc		Eaton Corporation		Guarantors		Other subsidiaries		Consolidating adjustments			Total
Assets
Current assets
Cash	$	1	$	92	$	4	$	446	$	—		$	543
Short-term investments	—		—		—		203		—			203
Accounts receivable - net	—		536		1,049		1,975		—			3,560
Intercompany accounts    receivable	5		954		4,023		3,633		(8,615		)	—
Inventory	—		342		642		1,349		(79		)	2,254
Prepaid expenses and    other current assets	—		77		42		237		25			381
Total current assets	6		2,001		5,760		7,843		(8,669		)	6,941
Property, plant and    equipment - net	—		857		706		1,880		—			3,443
Other noncurrent assets
Goodwill	—		1,355		6,293		5,553		—			13,201
Other intangible assets	—		169		3,442		1,903		—			5,514
Deferred income taxes	—		904		—		228		(772		)	360
Investment in subsidiaries	32,795		13,743		72,938		12,577		(132,053		)	—
Intercompany loans receivable	—		7,605		2,061		56,598		(66,264		)	—
Other assets	—		491		134		335		—			960
Total assets	$	32,801	$	27,125	$	91,334	$	86,917	$	(207,758	)	$	30,419
Liabilities and    shareholders’ equity
Current liabilities
Short-term debt	$	—	$	—	$	8	$	6	$	—		$	14
Current portion of    long-term debt	—		1,250		296		6		—			1,552
Accounts payable	1		372		252		1,093		—			1,718
Intercompany accounts payable	281		3,870		3,115		1,349		(8,615		)	—
Accrued compensation	—		98		58		223		—			379
Other current liabilities	1		591		291		941		(2		)	1,822
Total current liabilities	283		6,181		4,020		3,618		(8,617		)	5,485
Noncurrent liabilities
Long-term debt	—		5,767		936		8		—			6,711
Pension liabilities	—		610		161		888		—			1,659
Other postretirement    benefits liabilities	—		198		99		71		—			368
Deferred income taxes	—		—		732		361		(772		)	321
Intercompany loans payable	17,621		2,603		44,788		1,252		(66,264		)	—
Other noncurrent liabilities	—		327		211		396		—			934
Total noncurrent liabilities	17,621		9,505		46,927		2,976		(67,036		)	9,993
Shareholders’ equity
Eaton shareholders' equity	14,897		11,439		40,387		80,285		(132,111		)	14,897
Noncontrolling interests	—		—		—		38		6			44
Total equity	14,897		11,439		40,387		80,323		(132,105		)	14,941
Total liabilities and equity	$	32,801	$	27,125	$	91,334	$	86,917	$	(207,758	)	$	30,419

22

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS FOR THE SIX MONTHS ENDED JUNE 30, 2017
	Eaton Corporation plc			Eaton Corporation			Guarantors			Other subsidiaries			Consolidating adjustments			Total
Net cash provided by (used in)    operating activities	$	573		$	(215	)	$	697		$	1,489		$	(1,507	)	$	1,037
Investing activities
Capital expenditures for property,    plant and equipment	—			(46		)	(53		)	(147		)	—			(246		)
Cash received from sales (paid for acquisitions) of affiliates	—			—			(92		)	92			—			—
Sales (purchases) of short-term investments - net	—			—			—			(309		)	—			(309		)
Investments in affiliates	(90		)	—			—			(90		)	180			—
Return of investments in affiliates	—			—			20			—			(20		)	—
Loans to affiliates	—			(17		)	—			(3,853		)	3,870			—
Repayments of loans from affiliates	—			290			47			3,276			(3,613		)	—
Other - net	—			(26		)	7			(12		)	—			(31		)
Net cash provided by (used in) investing activities	(90		)	201			(71		)	(1,043		)	417			(586		)
Financing activities
Proceeds from borrowings	—			811			—			21			—			832
Payments on borrowings	—			(250		)	(289		)	(4		)	—			(543		)
Proceeds from borrowings from    affiliates	1,288			1,873			694			15			(3,870		)	—
Payments on borrowings from    affiliates	(819		)	(2,366		)	(353		)	(75		)	3,613			—
Capital contributions from affiliates	—			—			90			90			(180		)	—
Return of capital to affiliates	—			—			—			(20		)	20			—
Other intercompany financing    activities	—			(113		)	38			75			—			—
Cash dividends paid	(537		)	—			—			—			—			(537		)
Cash dividends paid to affiliates	—			—			(800		)	(707		)	1,507			—
Exercise of employee stock options	49			—			—			—			—			49
Repurchase of shares	(465		)	—			—			—			—			(465		)
Employee taxes paid from shares withheld	—			(14		)	(4		)	(3		)	—			(21		)
Other - net	—			—			(1		)	(3		)	—			(4		)
Net cash provided by (used in)    financing activities	(484		)	(59		)	(625		)	(611		)	1,090			(689		)
Effect of currency on cash	—			—			—			7			—			7
Total increase (decrease) in cash	(1		)	(73		)	1			(158		)	—			(231		)
Cash at the beginning of the period	1			92			4			446			—			543
Cash at the end of the period	$	—		$	19		$	5		$	288		$	—		$	312

23

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS FOR THE SIX MONTHS ENDED JUNE 30, 2016
	Eaton Corporation plc			Eaton Corporation			Guarantors			Other subsidiaries			Consolidating adjustments			Total
Net cash provided by (used in)    operating activities	$	(156	)	$	33		$	(298	)	$	1,554		$	—		$	1,133
Investing activities
Capital expenditures for property,    plant and equipment	—			(40		)	(49		)	(157		)	—			(246		)
Cash received from (paid for) acquisitions of businesses, net of cash acquired	—			—			1			—			—			1
Sales (purchases) of short-term investments - net	—			—			2			36			—			38
Investments in affiliates	(1,250		)	—			(120		)	(1,370		)	2,740			—
Return of investments in affiliates	—			—			47			—			(47		)	—
Loans to affiliates	—			(284		)	(47		)	(4,236		)	4,567			—
Repayments of loans from affiliates	—			1,280			—			2,922			(4,202		)	—
Other - net	—			2			25			(24		)	—			3
Net cash provided by (used in)    investing activities	(1,250		)	958			(141		)	(2,829		)	3,058			(204		)
Financing activities
Proceeds from borrowings	—			145			—			6			—			151
Payments on borrowings	—			—			(240		)	—			—			(240		)
Proceeds from borrowings from    affiliates	2,203			1,385			786			193			(4,567		)	—
Payments on borrowings from    affiliates	(18		)	(2,493		)	(1,658		)	(33		)	4,202			—
Capital contributions from affiliates	—			—			1,370			1,370			(2,740		)	—
Return of capital to affiliates	—			—			—			(47		)	47			—
Other intercompany financing activities	—			(43		)	183			(140		)	—			—
Cash dividends paid	(521		)	—			—			—			—			(521		)
Exercise of employee stock options	37			—			—			—			—			37
Repurchase of shares	(295		)	—			—			—			—			(295		)
Employee taxes paid from shares withheld	—			(10		)	(4		)	(3		)	—			(17		)
Other - net	—			3			—			—			—			3
Net cash provided by (used in)    financing activities	1,406			(1,013		)	437			1,346			(3,058		)	(882		)
Effect of currency on cash	—			—			—			8			—			8
Total increase (decrease) in cash	—			(22		)	(2		)	79			—			55
Cash at the beginning of the period	—			26			7			235			—			268
Cash at the end of the period	$	—		$	4		$	5		$	314		$	—		$	323

24

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 2016 net sales of $19.7 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 June 30				Six months ended June 30
	2017		2016		2017		2016
Net sales	$	5,132	$	5,080	$	9,980	$	9,893
Net income attributable to Eaton ordinary shareholders	515		491		947		895
Net income per share attributable to Eaton ordinary shareholders - diluted	$	1.15	$	1.07	$	2.10	$	1.95

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 second quarter and first six months of 2017 were $33 and $53, respectively, and were $35 and $98 in 2016, respectively. Charges from this initiative are primarily comprised of severance costs. Restructuring charges are anticipated to be $100 in 2017. The projected annualized savings from these restructuring actions are expected to be $518, 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 integration of Ephesus Lighting, Inc. in 2017 and 2016 and Oxalis Group Ltd. in 2016. 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 Consolidated Financial Statements.

25

Consolidated Financial Results

	Three months ended June 30						Increase (decrease)		Six months ended June 30						Increase (decrease)
	2017			2016					2017			2016
Net sales	$	5,132		$	5,080		1	%	$	9,980		$	9,893		1	%
Gross profit	1,682			1,661			1	%	3,220			3,183			1	%
Percent of net sales	32.8		%	32.7		%			32.3		%	32.2		%
Income before income taxes	570			553			3	%	1,034			995			4	%
Net income	516			492			5	%	948			895			6	%
Less net income for noncontrolling interests	(1		)	(1		)			(1		)	—
Net income attributable to Eaton    ordinary shareholders	515			491			5	%	947			895			6	%
Excluding acquisition integration charges,   after-tax (Note 3)	—			1					1			1
Operating earnings	$	515		$	492		5	%	$	948		$	896		6	%
Net income per share attributable to Eaton ordinary shareholders - diluted	$	1.15		$	1.07		7	%	$	2.10		$	1.95		8	%
Excluding per share impact of acquisition    integration charges, after-tax (Note 3)	—			—					—			—
Operating earnings per ordinary share	$	1.15		$	1.07		7	%	$	2.10		$	1.95		8	%

Net Sales

Net sales increased 1% in the second quarter and the first six months of 2017 compared to the second quarter and first six months of 2016 due to an increase of 2% in organic sales, partially offset by a decrease of 1% from the impact of negative currency translation. The increase in organic sales in the second quarter and first six months of 2017 was primarily due to higher sales volumes in the Electrical Products and Hydraulics business segments.

Gross Profit

Gross profit margin increased from 32.7% in the second quarter of 2016 to 32.8% in the second quarter of 2017, and from 32.2% in the first six months of 2016 to 32.3% in the first six months of 2017. The increase in gross profit margin was primarily due to higher sales volumes, savings from restructuring actions, and lower restructuring charges, partially offset by commodity inflation, and unfavorable product mix.

Income Taxes

The effective income tax rate for second quarter and first six months of 2017 was expense of 10% and 8%, respectively, compared to expense of 11% and 10% for the second quarter and first six months of 2016.  The decreases in the effective tax rate in the second quarter and the first six months of 2017 were due to the resolution of tax contingencies in lower tax jurisdictions and the excess tax benefits recognized for employee share-based payments pursuant to the adoption of ASU 2016-09 as discussed in Note 1.

Net Income

Net income attributable to Eaton ordinary shareholders of $515 in the second quarter of 2017 increased 5% compared to Net income attributable to Eaton ordinary shareholders of $491 in the second quarter of 2016. Net income attributable to Eaton ordinary shareholders in the first six months of 2017 was $947, anincrease of6%compared to $895 in the first six months of 2016. The increase in the second quarter and first six months of 2017 was primarily due to higher sales volumes, savings from restructuring actions, lower restructuring charges, and a lower tax rate, partially offset by commodity inflation, and unfavorable product mix.

Net income per ordinary share increased to $1.15 in the second quarter of 2017 compared to $1.07 in the second quarter of 2016. Net income per ordinary share increased to$2.10 in the first six months of 2017 compared to$1.95in the first six months of 2016. The increase in the Net income per ordinary share in the second quarter and first six months of 2017was due tohigher Net income attributable to Eaton ordinary shareholders and the Company's share repurchases over the past year.

26

Operating Earnings

Operating earnings of $515 in the second quarter of 2017 increased 5% compared to Operating earnings of $492 in the second quarter of 2016. Operating earnings in the first six months of 2017 was$948, an increase of 6% compared to $896 in the first six months of 2016. The increase in Operating earnings in the second quarter and the first six months of 2017 was primarily due to higher Net income attributable to Eaton ordinary shareholders.

Operating earnings per ordinary share increased to $1.15 in the second quarter of 2017 compared to $1.07 in the second quarter of 2016. Operating earnings per ordinary share increased to $2.10 in the first six months of 2017 compared to $1.95 in the first six months of 2016. The increase in Operating earnings per ordinary share in the second quarter and first six months of 2017 was due to higher Operating earnings and 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 June 30						Increase (decrease)		Six months ended June 30						Increase (decrease)
	2017			2016					2017			2016
Net sales	$	1,802		$	1,784		1	%	$	3,514		$	3,464		1	%
Operating profit	$	314		$	322		(2	)%	$	611		$	593		3	%
Operating margin	17.4		%	18.0		%			17.4		%	17.1		%
Acquisition integration charges	$	1		$	1				$	2		$	1
Before acquisition integration charges
Operating profit	$	315		$	323		(2	)%	$	613		$	594		3	%
Operating margin	17.5		%	18.1		%			17.4		%	17.1		%

Net sales increased 1% in the second quarter and the first six months of 2017 compared to the second quarter and first six months of 2016 due to an increase of 2% in organic sales, partially offset by a decrease of 1% from the impact of negative currency translation. Organic sales grew in the second quarter and first six months of 2017 in all regions.

Operating margin decreased from 18.0% in the second quarter of 2016 to 17.4% in the second quarter of 2017. The decrease in operating margin in the second quarter 2017 was primarily due to commodity inflation and increased investments in research and development, partially offset by savings from restructuring actions.Operating margin increased from17.1%in the first six months of 2016 to17.4%in the first six months of 2017.The increase in operating margin in the first six months of 2017 was primarily due to higher sales volumes, lower restructuring charges, andsavings from restructuring actions, partially offset by commodity inflation and increased investments in research and development.

Operating margin before acquisition integration charges decreased from 18.1% in the second quarter of 2016 to 17.5% in the second quarter of 2017 due to a decrease in operating margin, and increased from 17.1% in the first six months of 2016 to 17.4% in the first six month of 2017 due to an increase in operating margin.

27

Electrical Systems and Services

	Three months ended June 30						Increase (decrease)		Six months ended June 30						Increase (decrease)
	2017			2016					2017			2016
Net sales	$	1,414		$	1,429		(1	)%	$	2,747		$	2,771		(1	)%
Operating profit	$	194		$	178		9	%	$	349		$	337		4	%
Operating margin	13.7		%	12.5		%			12.7		%	12.2		%
Acquisition integration charges	$	—		$	—				$	—		$	1
Before acquisition integration charges
Operating profit	$	194		$	178		9	%	$	349		$	338		3	%
Operating margin	13.7		%	12.5		%			12.7		%	12.2		%

Net sales decreased 1% in the second quarter and first six months of 2017 compared to the second quarter and first six months of 2016 due to a decrease of 1% from the impact of negative currency translation. Organic sales were flat in the second quarter and first six months of 2017.

Operating margin increased from 12.5% in the second quarter of 2016 to 13.7% in the second quarter of 2017, and from 12.2% in the first six months of 2016 to 12.7% in the first six months of 2017. The increase in operating margin in the second quarter and first six months of 2017 was primarily due to savings from restructuring actions, other cost control measures and a litigation charge in 2016, partially offset by unfavorable product mix and commodity inflation.

Operating margin before acquisition integration charges increased from 12.2% in the first six months of 2016 to 12.7% in the first six months of 2017 due to an increase in operating margin.

Hydraulics

	Three months ended June 30						Increase (decrease)		Six months ended June 30						Increase (decrease)
	2017			2016					2017			2016
Net sales	$	633		$	589		7	%	$	1,220		$	1,140		7	%
Operating profit	$	74		$	59		25	%	$	134		$	100		34	%
Operating margin	11.7		%	10.0		%			11.0		%	8.8		%

Net sales increased 7% in the second quarter and first six months of 2017 compared to the second quarter and first six months of 2016 due to an increase of 9% in organic sales, partially offset by a decrease of 2% from the impact of negative currency translation. The increase in organic sales in the second quarter and first six months of 2017 was due to strength in global mobile OEM markets and distribution channels.

Operating margin increased from 10.0% in the second quarter of 2016 to 11.7% in the second quarter of 2017, and from8.8%in the first six months of 2016 to11.0%in the first six months of 2017.The increase in operating margin in the second quarter and first six months of 2017 was primarily due to higher sales volumes, savings from restructuring actions and lower restructuring charges, partially offset by commodity inflation and unfavorable product mix.

28

Aerospace

	Three months ended June 30						Increase (decrease)		Six months ended June 30						Increase (decrease)
	2017			2016					2017			2016
Net sales	$	437		$	447		(2	)%	$	865		$	892		(3	)%
Operating profit	$	81		$	83		(2	)%	$	160		$	163		(2	)%
Operating margin	18.5		%	18.6		%			18.5		%	18.3		%

Net sales in the second quarter of 2017 decreased 2% compared to the second quarter of 2016 due to a decrease of 2% from the impact of negative currency translation. Organic sales were flat in the second quarter of 2017. Net sales decreased 3% in the first six months of 2017 compared to the first six months of 2016 due to a decrease of 2% from the impact of negative currency translation and a decrease of 1% in organic sales. The decrease in organic sales in the first six months of 2017 was primarily due to lower sales in military aftermarket, business and regional jets, and lower cost reimbursements on certain engineering programs, partially offset by growth in commercial transports.

Operating margin decreased in the second quarter from 18.6% in 2016 to 18.5% in 2017 primarily due to unfavorable product mix. Operating margin increased from 18.3% in the first six months of 2016 to 18.5% in the first six months of 2017. The increase in operating margin in the first six months of 2017 was due to savings from restructuring actions and lower restructuring charges, partially offset by lower sales volumes.

Vehicle

	Three months ended June 30						Increase (decrease)		Six months ended June 30						Increase (decrease)
	2017			2016					2017			2016
Net sales	$	846		$	831		2	%	$	1,634		$	1,626		—	%
Operating profit	$	139		$	137		1	%	$	247		$	255		(3	)%
Operating margin	16.4		%	16.5		%			15.1		%	15.7		%

Net sales increased 2% in the second quarter of 2017 compared to the second quarter of 2016 due to an increase of 1% in organic sales and an increase of 1% from the impact of positive currency translation. The increase in organic sales in the second quarter of 2017 was primarily due to growth in North American and South American markets, partially offset by lower sales in Europe. Net sales were flat in the first six months of 2017 compared to the first six months of 2016 with no impact from either organic sales or foreign currency translation.

Operating margin decreased from 16.5% in the second quarter of 2016 to 16.4% in the second quarter of 2017 primarily due to commodity inflation and unfavorable product mix, partially offset by higher sales volumes and savings from restructuring actions. Operating margin decreased from 15.7% in the first six months of 2016 to 15.1% in the first six months of 2017primarily due tocommodity inflation, unfavorable product mix, and higher warranty costs, partially offset by savings from restructuring actions and lower restructuring charges.

29

Corporate Expense

	Three months ended June 30				Increase (decrease)		Six months ended June 30				Increase (decrease)
	2017		2016				2017		2016
Amortization of intangible assets	$	96	$	98	(2	)%	$	190	$	198	(4	)%
Interest expense - net	60		57		5	%	121		114		6	%
Pension and other postretirement    benefits expense	11		13		(15	)%	22		27		(19	)%
Other corporate expense - net	65		58		12	%	134		114		18	%
Total corporate expense	$	232	$	226	3	%	$	467	$	453	3	%

Total corporate expense increased 3% from $226 in the second quarter of 2016 to $232 in the second quarter of 2017. Total corporate expense increased 3% from $453 in the first six months of 2016 to $467 in the first six months of 2017. The increase in Total corporate expense for the second quarter and first six months of 2017 was primarily due to an increase in other corporate expense - net driven by an increase to the LIFO inventory reserve and higher corporate restructuring expenses, partially offset by a decrease in amortization of intangible assets and in pension and other postretirement benefits expense.

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 $2,000 commercial paper program, which is supported by credit facilities in the aggregate principal amount of $2,000. There were no borrowings outstanding under these revolving credit facilities at June 30, 2017. Over the course of a year, cash, short-term investments and short-term debt may fluctuate in order to manage global liquidity. Eaton believes it has the operating flexibility, cash flow, cash and short-term investment balances, and access to capital markets in excess of the liquidity necessary to meet future operating needs of the business as well as scheduled payments of long-term debt.

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

Sources and Uses of Cash

Operating Cash Flow

Net cash provided by operating activities was $1,037 in the first six months of 2017, a decrease of $96 in the source of cash compared to $1,133 in the first six months of 2016. The decrease in net cash provided by operating activities was driven by higher pension contributions which totaled $160 in the first six months of 2017 compared to $74 in the first six months of 2016.

Investing Cash Flow

Net cash used in investing activities was $586 in the first six months of 2017, an increase in the use of cash of $382 compared to $204 in the first six months of 2016. The increase in the use of cash was primarily driven by net purchases of short-term investments of $309 in 2017 compared to net sales of short-term investments of $38 in 2016.

Financing Cash Flow

Net cash used in financing activities was $689 in the first six months of 2017, a decrease of $193 in the use of cash compared to $882 in the first six months of 2016. The decrease in the use of cash was primarily due to an increase of $681 in proceeds from borrowings which totaled $832 in 2017 and $151 in 2016. This was partially offset by an increase of $303 in payments on borrowings which totaled $543 in 2017 and $240 in 2016, and a $170 increase in share repurchases during the first six months of 2017 compared to the first six months of 2016.

30

FORWARD-LOOKING STATEMENTS

This Form 10-Q Report contains forward-looking statements concerning litigation and regulatory developments, and the costs 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; 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, 2016.

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 June 30, 2017.

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

During the second quarter of 2017, 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 7 of the Notes to the Condensed Consolidated Financial Statements.

ITEM 1A. RISK FACTORS.

“Item 1A. Risk Factors” in Eaton's 2016 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 2016 Form 10-K.

31

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

(c) Issuer's Purchases of Equity Securities

During the second quarter of 2017, 2.7 million ordinary shares were repurchased in the open market at a total cost of $210 million. These shares were repurchased under the program approved by the Board on February 24, 2016. A summary of the shares repurchased in the second quarter of 2017 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)
April	—	$	—	—	$	1,598
May	2,471,704	$	76.61	2,471,704	$	1,409
June	271,439	$	76.02	271,439	$	1,388
Total	2,743,143	$	76.55	2,743,143

ITEM 5. OTHER INFORMATION.

Disclosure Pursuant to Section 13r of the Exchange Act

Set forth below is a description of all matters reported by us pursuant to Section 219 of the Iran Threat Reduction and Syria Human Rights Act of 2012 and Section 13(r) of the Exchange Act. Concurrently with the filing of this Quarterly Report, we are filing a notice pursuant to Section 13(r) of the Exchange Act that such matters have been disclosed in this Quarterly Report.

During the second quarter, our wholly-owned non-U.S. subsidiaries sold electrical products, consisting of lighting fixtures, floodlights, cable glands, stopping plugs and sockets, to distributors who have told us that the ultimate customers are owned by the government of Iran. We received total revenue of approximately 111,582 Euros and realized net profits of approximately 23,918 Euros from the sales (approximately $121,262 and $25,993 in whole dollars, respectively, at the exchange rates for U.S. dollars at the date of the sale transactions).  One or more of our non-U.S. subsidiaries intend to continue doing business in Iran under General License H in compliance with U.S. economic sanctions and export control laws, though the Company has no assets or employees in Iran.

ITEM 6. EXHIBITS.

Exhibits — See Exhibit Index attached.

32

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:	August 1, 2017	By:	/s/ Richard H. Fearon
			Richard H. Fearon
			Principal Financial Officer
			(On behalf of the registrant and as Principal Financial Officer)

33

Eaton Corporation plc

Second Quarter 2017 Report on Form 10-Q

Exhibit Index

3 (i)	Certificate of Incorporation — Incorporated by reference to the Form S-8 filed November 30, 2012
3 (ii)	Amended and Restated Memorandum and Articles of Incorporation — Incorporated by reference to the Form 8-K filed on May 1, 2017
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 June 30, 2017 and 2016, (ii) Consolidated Statements of Comprehensive Income for the three months ended June 30, 2017 and 2016, (iii) Condensed Consolidated Balance Sheets at June 30, 2017 and December 31, 2016, (iv) Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2017 and 2016 and (v) Notes to Condensed Consolidated Financial Statements for the six months ended June 30, 2017.

34

EX-12

Eaton Corporation plc

Second Quarter 2017 Report on Form 10-Q

Item 6

Exhibit 12

Ratio of Earnings to Fixed Charges

	Six months ended June 30			Year ended December 31
(Millions of dollars)	2017			2016			2015			2014			2013		2012
Income from continuing operations before income taxes    and noncontrolling interests in consolidated subsidiaries	$	1,034		$	2,127		$	2,145		$	1,761		$	1,884	$	1,251
Adjustments
(Income) loss of equity investees	(7		)	(14		)	(11		)	(6		)	2		(2		)
Distributed income of equity investees	2			9			9			4			77		19
Interest expensed	129			240			237			250			290		165
Amortization of debt issue costs	4			7			8			9			10		74
Estimated portion of rent expense representing interest	36			73			75			81			80		66
Amortization of capitalized interest	6			12			10			14			13		12
Adjusted income from continuing operations before    income taxes	$	1,204		$	2,454		$	2,473		$	2,113		$	2,356	$	1,585
Fixed charges
Interest expensed	$	129		$	240		$	237		$	250		$	290	$	165
Interest capitalized	5			12			13			13			11		23
Amortization of debt issue costs	4			7			8			9			10		74
Estimated portion of rent expense representing interest	36			73			75			81			80		66
Total fixed charges	$	174		$	332		$	333		$	353		$	391	$	328
Ratio of earnings to fixed charges	6.92			7.39			7.43			5.99			6.03		4.83

EX-31.1

Eaton Corporation plc

Second Quarter 2017 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:	August 1, 2017	/s/ Craig Arnold
		Craig Arnold
		Principal Executive Officer

EX-31.2

Eaton Corporation plc

Second Quarter 2017 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:	August 1, 2017	/s/ Richard H. Fearon
		Richard H. Fearon
		Principal Financial Officer

EX-32.1

Eaton Corporation plc

Second Quarter 2017 Report on Form 10-Q

Item 6

Exhibit 32.1

Certification

This written statement is submitted in accordance with Section 906 of the Sarbanes-Oxley Act of 2002. It accompanies Eaton Corporation plc’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2017 (“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:	August 1, 2017	/s/ Craig Arnold
		Craig Arnold
		Principal Executive Officer

EX-32.2

Eaton Corporation plc

Second Quarter 2017 Report on Form 10-Q

Item 6

Exhibit 32.2

Certification

This written statement is submitted in accordance with Section 906 of the Sarbanes-Oxley Act of 2002. It accompanies Eaton Corporation plc’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2017 (“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:	August 1, 2017	/s/ Richard H. Fearon
		Richard H. Fearon
		Principal Financial Officer

XML

Document and Entity Information Document and Entity Information shares in Millions	6 Months Ended
	Jun. 30, 2017 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	Jun. 30, 2017
Amendment Flag	false
Document Fiscal Year Focus	2017
Document Fiscal Period Focus	Q2
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding (in shares)	444.8

XML

CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Income Statement [Abstract]
Net sales	$ 5,132	$ 5,080	$ 9,980	$ 9,893
Cost of products sold	3,450	3,419	6,760	6,710
Selling and administrative expense	902	897	1,787	1,789
Research and development expense	150	149	293	298
Interest expense - net	60	57	121	114
Other expense (income) - net	0	5	(15)	(13)
Income before income taxes	570	553	1,034	995
Income tax expense	54	61	86	100
Net income	516	492	948	895
Less net income for noncontrolling interests	(1)	(1)	(1)	0
Net income attributable to Eaton ordinary shareholders	$ 515	$ 491	$ 947	$ 895
Net income per share attributable to Eaton ordinary shareholders
Diluted (usd per share)	$ 1.15	$ 1.07	$ 2.10	$ 1.95
Basic (usd per share)	$ 1.15	$ 1.08	$ 2.12	$ 1.96
Weighted-average number of ordinary shares outstanding
Diluted (shares)	448.6	458.3	449.8	459.0
Basic (shares)	446.3	457.0	447.5	457.8
Cash dividends declared per ordinary share (usd per share)	$ 0.6	$ 0.57	$ 1.20	$ 1.14

XML

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Statement of Comprehensive Income [Abstract]
Net income	$ 516	$ 492	$ 948	$ 895
Less net income for noncontrolling interests	(1)	(1)	(1)	0
Net income attributable to Eaton ordinary shareholders	515	491	947	895
Other comprehensive income (loss), net of tax
Currency translation and related hedging instruments	320	(296)	548	(35)
Pensions and other postretirement benefits	4	53	37	87
Cash flow hedges	(1)	(12)	1	(34)
Other comprehensive income (loss) attributable to Eaton ordinary shareholders	323	(255)	586	18
Total comprehensive income attributable to Eaton ordinary shareholders	$ 838	$ 236	$ 1,533	$ 913

XML

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions	Jun. 30, 2017	Dec. 31, 2016
Current assets
Cash	$ 312	$ 543
Short-term investments	525	203
Accounts receivable - net	3,813	3,560
Inventory	2,393	2,254
Prepaid expenses and other current assets	444	381
Total current assets	7,487	6,941
Land and buildings	2,455	2,369
Machinery and equipment	5,934	5,670
Gross property, plant and equipment	8,389	8,039
Accumulated depreciation	(4,859)	(4,596)
Net property, plant and equipment	3,530	3,443
Other noncurrent assets
Goodwill	13,478	13,201
Other intangible assets	5,410	5,514
Deferred income taxes	443	360
Other assets	1,007	960
Total assets	31,355	30,419
Current liabilities
Short-term debt	846	14
Current portion of long-term debt	1,495	1,552
Accounts payable	1,885	1,718
Accrued compensation	338	379
Other current liabilities	1,745	1,822
Total current liabilities	6,309	5,485
Noncurrent liabilities
Long-term debt	6,264	6,711
Pension liabilities	1,578	1,659
Other postretirement benefits liabilities	364	368
Deferred income taxes	316	321
Other noncurrent liabilities	930	934
Total noncurrent liabilities	9,452	9,993
Shareholders’ equity
Eaton shareholders’ equity	15,552	14,897
Noncontrolling interests	42	44
Total equity	15,594	14,941
Total liabilities and equity	$ 31,355	$ 30,419

XML

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Operating activities
Net income	$ 948	$ 895
Adjustments to reconcile to net cash provided by operating activities
Depreciation and amortization	453	467
Deferred income taxes	(107)	(74)
Pension and other postretirement benefits expense	104	116
Contributions to pension plans	(160)	(74)
Contributions to other postretirement benefits plans	(11)	(18)
Changes in working capital	(376)	(256)
Other - net	186	77
Net cash provided by operating activities	1,037	1,133
Investing activities
Capital expenditures for property, plant and equipment	(246)	(246)
Cash received from acquisitions of businesses, net of cash acquired	0	1
Sale (purchases) of short-term investments - net	(309)	38
Other - net	(31)	3
Net cash used in investing activities	(586)	(204)
Financing activities
Proceeds from borrowings	832	151
Payments on borrowings	(543)	(240)
Cash dividends paid	(537)	(521)
Exercise of employee stock options	49	37
Repurchase of shares	(465)	(295)
Payments Related to Tax Withholding for Share-based Compensation	(21)	(17)
Other - net	(4)	3
Net cash used in financing activities	(689)	(882)
Effect of currency on cash	7	8
Total (decrease) increase in cash	(231)	55
Cash at the beginning of the period	543	268
Cash at the end of the period	$ 312	$ 323

XML

BASIS OF PRESENTATION

6 Months Ended

Jun. 30, 2017

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 2016 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 2017, the Company adopted Accounting Standards Update 2016-09, Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting, (ASU 2016-09). Upon adoption, the Company recorded deferred tax assets of $48 for all excess tax benefits that had not been previously recognized. This was accomplished through a cumulative-effect adjustment to retained earnings. ASU 2016-09 also requires that all excess tax benefits and deficiencies generated in the current and future periods be recorded as income tax benefit or expense in the reporting period in which they occur. These excess tax benefits and deficiencies, which were previously required to be presented as financing activities on the Company’s Condensed Consolidated Statements of Cash Flows, are now classified as operating activities prospectively. The Company also reclassified $21 and $17 for the first six months of 2017 and 2016, respectively, from operating activities to financing activities on the Company’s Condensed Consolidated Statements of Cash Flows for withholding payments made to taxing authorities from shares withheld from employees. The Company will continue to estimate forfeitures as part of recording equity-based compensation expense.

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

Recently Issued Accounting Pronouncements

In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update 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.

A cross-functional implementation team has been established consisting of representatives from all of our business segments to review current accounting policies and practices to identify potential differences that would result from applying the requirements of the new standard to revenue contracts. The implementation team performed a review of samples of customer contracts across the Company’s significant revenue streams. Based on this evaluation, most of the revenue streams will be recorded consistently under both the current and new standards. Certain revenue streams will move from point-in-time or multiple elements to over time because of the continuous transfer of control to customers. The Company is also in the process of identifying and implementing the appropriate changes to business processes and controls to support recognition and disclosure under the new standard, including evaluating new qualitative and quantitative disclosures that will include information on the nature, amount, timing and significant judgments impacting revenue from contracts with customers. Eaton plans to adopt the standard as of the first quarter of 2018 using the modified retrospective approach and will record a cumulative adjustment to equity for open contracts as of January 1, 2018. Eaton is continuing to evaluate the impact of ASU 2014-09 and an estimate of the impact to the consolidated financial statements cannot be made at this time.

In February 2016, the Financial Accounting Standards Board 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.

XML

FORMATION OF A JOINT VENTURE

6 Months Ended

Jun. 30, 2017

FORMATION OF A JOINT VENTURE [Abstract]

Equity Method Investments and Joint Ventures Disclosure [Text Block]

FORMATION OF A JOINT VENTURE

On July 31, 2017, Eaton and Cummins, Inc. formed a joint venture for automated transmissions for heavy-duty and medium-duty commercial vehicles. The joint venture is named Eaton Cummins Automated Transmission Technologies. Cummins, Inc. and Eaton each own 50% of the new joint venture. Eaton will account for the joint venture on the equity method of accounting. Eaton received $600 in cash from Cummins, Inc. for a 50% interest in the joint venture. The Company is currently assessing the impact of the transaction to the consolidated financial statements.

XML

ACQUISITION INTEGRATION CHARGES

6 Months Ended

Jun. 30, 2017

Acquisitions Integration Charges [Abstract]

ACQUISITION INTEGRATION CHARGES

ACQUISITION INTEGRATION CHARGES

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

	Three months ended June 30				Six months ended June 30
	2017		2016		2017		2016
Electrical Products	$	1	$	1	$	2	$	1
Electrical Systems and Services	—		—		—		1
Total acquisition integration charges before income taxes	1		1		2		2
Income taxes	1		—		1		1
Total after income taxes	$	—	$	1	$	1	$	1
Per ordinary share - diluted	$	—	$	—	$	—	$	—

Business segment acquisition integration charges in 2017 related to the integration of Ephesus Lighting, Inc. (Ephesus), which was acquired in 2015. The charges associated with Ephesus were included in Selling and administrative expense. Business segment acquisition integration charges in 2016 related to the integration of Ephesus and Oxalis Group Ltd. (Oxalis), which was acquired in 2015. The charges associated with Ephesus and Oxalis were included in Selling and administrative expense and Cost of products sold, respectively. In Business Segment Information, the charges reduced Operating profit of the related business segment. See Note 13 for additional information about business segments.

XML

RESTRUCTURING CHARGES

6 Months Ended

Jun. 30, 2017

Restructuring and Related Activities [Abstract]

RESTRUCTURING CHARGES

RESTRUCTURING CHARGES

During 2015, Eaton announced its commitment to undertake actions to reduce its cost structure in all business segments and at corporate. Restructuring charges incurred for the three and six months ended June 30, 2017, were $33 and $53, respectively, and were $35 and $98 for the three and six months ended June 30, 2016, respectively. The charges associated with restructuring activities are anticipated to be $100 in 2017.

A summary of restructuring charges by type follows:

	Three months ended June 30				Six months ended June 30
	2017		2016		2017		2016
Workforce reductions	$	17	$	20	$	25	$	77
Plant closings and other	16		15		28		21
Total	$	33	$	35	$	53	$	98

A summary of restructuring charges by segment follows:

	Three months ended June 30				Six months ended June 30
	2017		2016		2017		2016
Electrical Products	$	11	$	9	$	14	$	26
Electrical Systems & Services	5		3		7		13
Hydraulics	8		18		17		34
Aerospace	—		—		1		4
Vehicle	3		5		5		17
Corporate	6		—		9		4
Total	$	33	$	35	$	53	$	98

A summary of liabilities related to workforce reductions, plant closings and other associated costs announced in 2015 follows:

	Workforce reductions			Plant closings and other			Total
Balance at December 31, 2015	$	54		$	—		$	54
Liability recognized	177			34			211
Payments	(116		)	(13		)	(129		)
Other adjustments	(2		)	(20		)	(22		)
Balance at December 31, 2016	113			1			114
Liability recognized	25			28			53
Payments	(56		)	(15		)	(71		)
Other adjustments	(3		)	(9		)	(12		)
Balance at June 30, 2017	$	79		$	5		$	84

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 13 for additional information about business segments.

XML

GOODWILL

6 Months Ended

Jun. 30, 2017

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL

GOODWILL

Change in the carrying amount of goodwill by segment follows:

	Electrical Products		Electrical Systems and Services		Hydraulics		Aerospace		Vehicle		Total
December 31, 2016	$	6,497	$	4,203	$	1,221	$	938	$	342	$	13,201
Translation	166		79		24		5		3		277
June 30, 2017	$	6,663	$	4,282	$	1,245	$	943	$	345	$	13,478

XML

RETIREMENT BENEFITS PLANS

6 Months Ended

Jun. 30, 2017

Retirement Benefits [Abstract]

RETIREMENT BENEFITS PLANS

RETIREMENT BENEFITS PLANS

The components of retirement benefits expense follow:

	United States pension benefit expense						Non-United States pension benefit expense						Other postretirement benefits expense
	Three months ended June 30
	2017			2016			2017			2016			2017			2016
Service cost	$	24		$	27		$	18		$	17		$	—		$	1
Interest cost	31			32			14			16			4			5
Expected return on plan assets	(61		)	(62		)	(23		)	(24		)	(1		)	(2		)
Amortization	21			23			12			8			(3		)	(2		)
	15			20			21			17			—			2
Settlements and special termination benefits	17			18			—			—			—			—
Total expense	$	32		$	38		$	21		$	17		$	—		$	2
	United States pension benefit expense						Non-United States pension benefit expense						Other postretirement benefits expense
	Six months ended June 30
	2017			2016			2017			2016			2017			2016
Service cost	$	48		$	55		$	35		$	33		$	1		$	2
Interest cost	62			63			27			32			7			9
Expected return on plan assets	(122		)	(125		)	(46		)	(48		)	(2		)	(3		)
Amortization	41			46			25			17			(6		)	(4		)
	29			39			41			34			—			4
Settlements and special termination benefits	34			39			—			—			—			—
Total expense	$	63		$	78		$	41		$	34		$	—		$	4

XML

LEGAL CONTINGENCIES

6 Months Ended

Jun. 30, 2017

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 and proceedings. 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.

XML

INCOME TAXES

6 Months Ended

Jun. 30, 2017

Income Tax Disclosure [Abstract]

INCOME TAXES

INCOME TAXES

The effective income tax rate for second quarter and first six months of 2017 was expense of 10% and 8%, respectively, compared to expense of 11% and 10% for the second quarter and first six months of 2016.  The decreases in the effective tax rate in the second quarter and the first six months of 2017 were due to the resolution of tax contingencies in lower tax jurisdictions and the excess tax benefits recognized for employee share-based payments pursuant to the adoption of ASU 2016-09 as discussed in Note 1.

On July 26, 2017, the United States Tax Court issued a ruling in the previously-disclosed dispute between Eaton Corporation, a subsidiary of the Company ( “Eaton Corp”) and the Internal Revenue Service (the "IRS"). As the Company has previously disclosed, the IRS issued a Notice in 2011 for Eaton Corp’s 2005 and 2006 tax years proposing assessments of $75 million in additional taxes plus $52 million in penalties related primarily to transfer pricing adjustments for products manufactured in Eaton Corp’s facilities in Puerto Rico and the Dominican Republic and sold to affiliated companies located in the U.S. As previously disclosed, the IRS also proposed adjustments related to the same transfer pricing issue in another Notice issued in 2014 for the 2007 through 2010 tax years. Eaton Corp has set its transfer prices for products sold between these affiliates at the same prices that it sells such products to third parties as required by two successive Advance Pricing Agreements (APAs) Eaton Corp entered into with the IRS. The IRS cancelled the APAs and made the proposed adjustments in the 2011 and 2014 Notices, which Eaton Corp disputed in the Tax Court. The Tax Court case involved both whether the APAs should be enforced and, if not, the appropriate transfer pricing methodology. The Tax Court held a trial for the 2005 and 2006 tax years, the outcome of which also applies to the transfer pricing matter in the 2007 through 2010 tax years.

The Tax Court agreed with Eaton Corp that the IRS must abide by the terms of the APAs for the tax years 2005-06, a finding that is also applicable to the 2007-2010 years. The Tax Court’s ruling on the APAs is not expected to have a material impact on Eaton’s consolidated financial statements.

XML

EQUITY

6 Months Ended

Jun. 30, 2017

Stockholders' Equity Note [Abstract]

EQUITY

EQUITY

On October 22, 2013, Eaton's Board of Directors adopted a share repurchase program (the 2013 Program). Under the 2013 Program, the ordinary shares were expected to be repurchased over time, depending on market conditions, the market price of ordinary shares, capital levels, and other considerations. 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. 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 six months ended June 30, 2017, 2.7 million and 6.3 million ordinary shares, respectively, were repurchased under the 2016 Program in the open market at a total cost of $210 and $465, respectively. During the three and six months ended June 30, 2016, 3.7 million and 4.0 million ordinary shares, respectively, were repurchased under the 2016 Program in the open market at a total cost of $224 and $242, respectively.

The changes in Shareholders’ equity follow:

	Eaton shareholders’ equity			Noncontrolling interests			Total equity
Balance at December 31, 2016	$	14,897		$	44		$	14,941
Cumulative-effect adjustment upon adoption of ASU 2016-09	48			—			48
Net income	947			1			948
Other comprehensive income	586			—			586
Cash dividends paid	(537		)	(3		)	(540		)
Issuance of shares under equity-based compensation plans - net	76			—			76
Repurchase of shares	(465		)	—			(465		)
Balance at June 30, 2017	$	15,552		$	42		$	15,594

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, 2016	$	(3,062	)	$	(1,380	)	$	(6	)	$	(4,448	)
Other comprehensive (loss) income    before reclassifications	548			(27		)	(3		)	518
Amounts reclassified from Accumulated other    comprehensive loss (income)	—			64			4			68
Net current-period Other comprehensive    income (loss)	548			37			1			586
Balance at June 30, 2017	$	(2,514	)	$	(1,343	)	$	(5	)	$	(3,862	)

The reclassifications out of Accumulated other comprehensive loss follow:

	Six months ended June 30, 2017				Consolidated statements of income classification
Amortization of defined benefit pensions and other postretirement benefits items
Actuarial loss and prior service cost	$	(94	)	1
Tax benefit	30
Total, net of tax	(64		)
Gains and (losses) on cash flow hedges
Currency exchange contracts	(5		)		Cost of products sold
Tax benefit	1
Total, net of tax	(4		)
Total reclassifications for the period	$	(68	)

¹ These components of Accumulated other comprehensive loss are included in the computation of net periodic benefit cost. See Note 6 for additional information about pension and other 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 June 30				Six months ended June 30
(Shares in millions)	2017		2016		2017		2016
Net income attributable to Eaton ordinary shareholders	$	515	$	491	$	947	$	895
Weighted-average number of ordinary shares outstanding - diluted	448.6		458.3		449.8		459.0
Less dilutive effect of equity-based compensation	2.3		1.3		2.3		1.2
Weighted-average number of ordinary shares outstanding - basic	446.3		457.0		447.5		457.8
Net income per share attributable to Eaton ordinary shareholders
Diluted	$	1.15	$	1.07	$	2.10	$	1.95
Basic	1.15		1.08		2.12		1.96

For the second quarter and first six months of 2017, 0.2 million and 0.7 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 second quarter and first six months of 2016, 1.5 million and 1.9 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.

XML

FAIR VALUE MEASUREMENTS

6 Months Ended

Jun. 30, 2017

Fair Value Disclosures [Abstract]

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS

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

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

	Total			Level 1		Level 2			Level 3
June 30, 2017
Cash	$	312		$	312	$	—		$	—
Short-term investments	525			525		—			—
Net derivative contracts	64			—		64			—
December 31, 2016
Cash	$	543		$	543	$	—		$	—
Short-term investments	203			203		—			—
Net derivative contracts	(3		)	—		(3		)	—

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 $7,759 and fair value of $8,093 at June 30, 2017 compared to $8,263 and $8,477, respectively, at December 31, 2016. 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.

XML

DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES

6 Months Ended

Jun. 30, 2017

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 $89 at June 30, 2017 and $86 at December 31, 2016, and designated on a pre-tax basis was $620 at June 30, 2017 and $572 at December 31, 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
June 30, 2017
Derivatives designated as hedges
Fixed-to-floating interest rate  swaps	$	3,715	$	3	$	60	$	1	$	7	Fair value	4 months to 18 years
Forward starting floating-to-fixed  interest rate swaps	450		—		14		—		1		Cash flow	10 years
Interest rate locks	350		—		1		—		1		Cash flow	10 to 30 years
Currency exchange contracts	849		6		2		21		8		Cash flow	1 to 36 months
Total			$	9	$	77	$	22	$	17
Derivatives not designated as  hedges
Currency exchange contracts	$	2,626	$	43			$	26				1 to 12 months
Commodity contracts	4		—				—					1 to 12 months
Total			$	43			$	26
December 31, 2016
Derivatives designated as hedges
Fixed-to-floating interest rate  swaps	$	3,765	$	1	$	65	$	—	$	8	Fair value	3 months to 18 years
Forward starting floating-to-fixed  interest rate swaps	450		—		19		—		1		Cash flow	11 years
Currency exchange contracts	802		11		1		22		17		Cash flow	1 to 36 months
Total			$	12	$	85	$	22	$	26
Derivatives not designated as  hedges
Currency exchange contracts	$	5,333	$	31			$	85				1 to 12 months
Commodity contracts	10		2				—					1 to 12 months
Total			$	33			$	85

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 June 30							Three months ended June 30
	2017			2016				2017			2016
Derivatives designated as    cash flow hedges
Forward starting floating-to-fixed  interest rate swaps	$	(5	)	$	(10	)	Interest expense - net	$	—		$	—
Currency exchange contracts	2			(10		)	Cost of products sold	(1		)	(2		)
Total	$	(3	)	$	(20	)		$	(1	)	$	(2	)
	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
	Six months ended June 30							Six months ended June 30
	2017			2016				2017			2016
Derivatives designated as cash flow hedges
Forward starting floating-to-fixed interest rate swaps	$	(5	)	$	(19	)	Interest expense - net	$	—		$	—
Currency exchange contracts	1			(32		)	Cost of products sold	(5		)	1
Total	$	(4	)	$	(51	)		$	(5	)	$	1

Amounts recognized in net income follow:

	Three months ended June 30						Six months ended June 30
	2017			2016			2017			2016
Derivatives designated as fair value hedges
Fixed-to-floating interest rate swaps	$	8		$	30		$	(3	)	$	106
Related long-term debt converted to floating interest    rates by interest rate swaps	(8		)	(30		)	3			(106		)
	$	—		$	—		$	—		$	—

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

XML

INVENTORY

6 Months Ended

Jun. 30, 2017

Inventory Disclosure [Abstract]

INVENTORY

INVENTORY

Inventory accounted for using the first-in, first out (FIFO) method is carried at lower of cost or net realizable value. Inventory accounted for using the last-in, first-out (LIFO) method is carried at lower of cost or market. The components of inventory follow:

	June 30, 2017			December 31, 2016
Raw materials	$	924		$	880
Work-in-process	432			396
Finished goods	1,137			1,074
Inventory at FIFO	2,493			2,350
Excess of FIFO over LIFO cost	(100		)	(96		)
Total inventory	$	2,393		$	2,254

XML

BUSINESS SEGMENT INFORMATION

6 Months Ended

Jun. 30, 2017

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 2016 Form 10-K.

	Three months ended June 30						Six months ended June 30
	2017			2016			2017			2016
Net sales
Electrical Products	$	1,802		$	1,784		$	3,514		$	3,464
Electrical Systems and Services	1,414			1,429			2,747			2,771
Hydraulics	633			589			1,220			1,140
Aerospace	437			447			865			892
Vehicle	846			831			1,634			1,626
Total net sales	$	5,132		$	5,080		$	9,980		$	9,893
Segment operating profit
Electrical Products	$	314		$	322		$	611		$	593
Electrical Systems and Services	194			178			349			337
Hydraulics	74			59			134			100
Aerospace	81			83			160			163
Vehicle	139			137			247			255
Total segment operating profit	802			779			1,501			1,448
Corporate
Amortization of intangible assets	(96		)	(98		)	(190		)	(198		)
Interest expense - net	(60		)	(57		)	(121		)	(114		)
Pension and other postretirement benefits expense	(11		)	(13		)	(22		)	(27		)
Other corporate expense - net	(65		)	(58		)	(134		)	(114		)
Income before income taxes	570			553			1,034			995
Income tax expense	54			61			86			100
Net income	516			492			948			895
Less net income for noncontrolling interests	(1		)	(1		)	(1		)	—
Net income attributable to Eaton ordinary shareholders	$	515		$	491		$	947		$	895

XML

CONDENSED CONSOLIDATING FINANCIAL STATEMENTS

6 Months Ended

Jun. 30, 2017

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 2017 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 JUNE 30, 2017
	Eaton Corporation plc			Eaton Corporation			Guarantors			Other subsidiaries			Consolidating adjustments			Total
Net sales	$	—		$	1,696		$	1,672		$	3,164		$	(1,400	)	$	5,132
Cost of products sold	—			1,373			1,225			2,248			(1,396		)	3,450
Selling and administrative expense	34			342			197			329			—			902
Research and development expense	—			57			53			40			—			150
Interest expense (income) - net	—			58			6			(4		)	—			60
Other expense (income) - net	41			7			(37		)	(11		)	—			—
Equity in loss (earnings) of    subsidiaries, net of tax	(704		)	(185		)	(853		)	(114		)	1,856			—
Intercompany expense (income) - net	114			(34		)	339			(419		)	—			—
Income (loss) before income taxes	515			78			742			1,095			(1,860		)	570
Income tax expense (benefit)	—			3			3			51			(3		)	54
Net income (loss)	515			75			739			1,044			(1,857		)	516
Less net loss (income) for    noncontrolling interests	—			—			—			(1		)	—			(1		)
Net income (loss) attributable to    Eaton ordinary shareholders	$	515		$	75		$	739		$	1,043		$	(1,857	)	$	515
Other comprehensive income (loss)	$	323		$	(10	)	$	322		$	408		$	(720	)	$	323
Total comprehensive income   (loss) attributable to Eaton   ordinary shareholders	$	838		$	65		$	1,061		$	1,451		$	(2,577	)	$	838

CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME FOR THE THREE MONTHS ENDED JUNE 30, 2016
	Eaton Corporation plc			Eaton Corporation			Guarantors			Other subsidiaries			Consolidating adjustments			Total
Net sales	$	—		$	1,644		$	1,648		$	3,057		$	(1,269	)	$	5,080
Cost of products sold	—			1,263			1,203			2,224			(1,271		)	3,419
Selling and administrative expense	2			351			198			346			—			897
Research and development expense	—			55			47			47			—			149
Interest expense (income) - net	—			57			6			(7		)	1			57
Other expense (income) - net	—			3			6			(4		)	—			5
Equity in loss (earnings) of    subsidiaries, net of tax	(594		)	(154		)	(811		)	(132		)	1,691			—
Intercompany expense (income) - net	101			(34		)	313			(380		)	—			—
Income (loss) before income taxes	491			103			686			963			(1,690		)	553
Income tax expense (benefit)	—			13			12			36			—			61
Net income (loss)	491			90			674			927			(1,690		)	492
Less net loss (income) for    noncontrolling interests	—			—			—			(2		)	1			(1		)
Net income (loss) attributable to    Eaton ordinary shareholders	$	491		$	90		$	674		$	925		$	(1,689	)	$	491
Other comprehensive income (loss)	$	(255	)	$	—		$	(248	)	$	(319	)	$	567		$	(255	)
Total comprehensive income    (loss) attributable to Eaton    ordinary shareholders	$	236		$	90		$	426		$	606		$	(1,122	)	$	236

CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME FOR THE SIX MONTHS ENDED JUNE 30, 2017
	Eaton Corporation plc			Eaton Corporation			Guarantors			Other subsidiaries			Consolidating adjustments			Total
Net sales	$	—		$	3,268		$	3,267		$	6,155		$	(2,710	)	$	9,980
Cost of products sold	—			2,626			2,413			4,429			(2,708		)	6,760
Selling and administrative expense	66			668			391			662			—			1,787
Research and development expense	—			111			100			82			—			293
Interest expense (income) - net	—			118			11			(8		)	—			121
Other expense (income) - net	48			7			(38		)	(32		)	—			(15		)
Equity in loss (earnings) of    subsidiaries, net of tax	(1,285		)	(375		)	(1,725		)	(225		)	3,610			—
Intercompany expense (income) - net	224			(73		)	672			(823		)	—			—
Income (loss) before income taxes	947			186			1,443			2,070			(3,612		)	1,034
Income tax expense (benefit)	—			—			19			68			(1		)	86
Net income (loss)	947			186			1,424			2,002			(3,611		)	948
Less net loss (income) for    noncontrolling interests	—			—			—			(2		)	1			(1		)
Net income (loss) attributable to    Eaton ordinary shareholders	$	947		$	186		$	1,424		$	2,000		$	(3,610	)	$	947
Other comprehensive income (loss)	$	586		$	50		$	592		$	731		$	(1,373	)	$	586
Total comprehensive income    (loss) attributable to Eaton    ordinary shareholders	$	1,533		$	236		$	2,016		$	2,731		$	(4,983	)	$	1,533

CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME FOR THE SIX MONTHS ENDED JUNE 30, 2016
	Eaton Corporation plc			Eaton Corporation			Guarantors			Other subsidiaries			Consolidating adjustments			Total
Net sales	$	—		$	3,182		$	3,223		$	5,930		$	(2,442	)	$	9,893
Cost of products sold	—			2,459			2,403			4,294			(2,446		)	6,710
Selling and administrative expense	4			716			394			675			—			1,789
Research and development expense	—			117			96			85			—			298
Interest expense (income) - net	—			110			9			(10		)	5			114
Other expense (income) - net	—			1			4			(18		)	—			(13		)
Equity in loss (earnings) of    subsidiaries, net of tax	(1,098		)	(322		)	(1,484		)	(229		)	3,133			—
Intercompany expense (income) - net	199			(70		)	568			(697		)	—			—
Income (loss) before income taxes	895			171			1,233			1,830			(3,134		)	995
Income tax expense (benefit)	—			20			13			67			—			100
Net income (loss)	895			151			1,220			1,763			(3,134		)	895
Less net loss (income) for    noncontrolling interests	—			—			—			(2		)	2			—
Net income (loss) attributable to    Eaton ordinary shareholders	$	895		$	151		$	1,220		$	1,761		$	(3,132	)	$	895
Other comprehensive income (loss)	$	18		$	44		$	30		$	(10	)	$	(64	)	$	18
Total comprehensive income (loss) attributable to Eaton ordinary shareholders	$	913		$	195		$	1,250		$	1,751		$	(3,196	)	$	913

CONDENSED CONSOLIDATING BALANCE SHEETS JUNE 30, 2017
	Eaton Corporation plc		Eaton Corporation		Guarantors		Other subsidiaries		Consolidating adjustments			Total
Assets
Current assets
Cash	$	—	$	19	$	5	$	288	$	—		$	312
Short-term investments	—		—		—		525		—			525
Accounts receivable - net	—		525		1,169		2,119		—			3,813
Intercompany accounts    receivable	2		752		3,524		3,596		(7,874		)	—
Inventory	—		332		655		1,487		(81		)	2,393
Prepaid expenses and    other current assets	—		108		48		261		27			444
Total current assets	2		1,736		5,401		8,276		(7,928		)	7,487
Property, plant and    equipment - net	—		843		696		1,991		—			3,530
Other noncurrent assets
Goodwill	—		1,355		6,293		5,830		—			13,478
Other intangible assets	—		162		3,351		1,897		—			5,410
Deferred income taxes	—		927		—		243		(727		)	443
Investment in subsidiaries	34,028		13,827		74,853		12,886		(135,594		)	—
Intercompany loans receivable	—		7,695		2,481		57,519		(67,695		)	—
Other assets	—		504		141		362		—			1,007
Total assets	$	34,030	$	27,049	$	93,216	$	89,004	$	(211,944	)	$	31,355
Liabilities and    shareholders’ equity
Current liabilities
Short-term debt	$	—	$	811	$	—	$	35	$	—		$	846
Current portion of    long-term debt	—		1,456		36		3		—			1,495
Accounts payable	—		457		266		1,162		—			1,885
Intercompany accounts payable	216		3,232		3,213		1,213		(7,874		)	—
Accrued compensation	—		78		42		218		—			338
Other current liabilities	1		536		300		910		(2		)	1,745
Total current liabilities	217		6,570		3,857		3,541		(7,876		)	6,309
Noncurrent liabilities
Long-term debt	—		5,310		946		8		—			6,264
Pension liabilities	—		531		137		910		—			1,578
Other postretirement    benefits liabilities	—		194		98		72		—			364
Deferred income taxes	—		—		680		363		(727		)	316
Intercompany loans payable	18,261		2,374		45,618		1,442		(67,695		)	—
Other noncurrent liabilities	—		321		225		384		—			930
Total noncurrent liabilities	18,261		8,730		47,704		3,179		(68,422		)	9,452
Shareholders’ equity
Eaton shareholders' equity	15,552		11,749		41,655		82,247		(135,651		)	15,552
Noncontrolling interests	—		—		—		37		5			42
Total equity	15,552		11,749		41,655		82,284		(135,646		)	15,594
Total liabilities and equity	$	34,030	$	27,049	$	93,216	$	89,004	$	(211,944	)	$	31,355

CONDENSED CONSOLIDATING BALANCE SHEETS DECEMBER 31, 2016
	Eaton Corporation plc		Eaton Corporation		Guarantors		Other subsidiaries		Consolidating adjustments			Total
Assets
Current assets
Cash	$	1	$	92	$	4	$	446	$	—		$	543
Short-term investments	—		—		—		203		—			203
Accounts receivable - net	—		536		1,049		1,975		—			3,560
Intercompany accounts    receivable	5		954		4,023		3,633		(8,615		)	—
Inventory	—		342		642		1,349		(79		)	2,254
Prepaid expenses and    other current assets	—		77		42		237		25			381
Total current assets	6		2,001		5,760		7,843		(8,669		)	6,941
Property, plant and    equipment - net	—		857		706		1,880		—			3,443
Other noncurrent assets
Goodwill	—		1,355		6,293		5,553		—			13,201
Other intangible assets	—		169		3,442		1,903		—			5,514
Deferred income taxes	—		904		—		228		(772		)	360
Investment in subsidiaries	32,795		13,743		72,938		12,577		(132,053		)	—
Intercompany loans receivable	—		7,605		2,061		56,598		(66,264		)	—
Other assets	—		491		134		335		—			960
Total assets	$	32,801	$	27,125	$	91,334	$	86,917	$	(207,758	)	$	30,419
Liabilities and    shareholders’ equity
Current liabilities
Short-term debt	$	—	$	—	$	8	$	6	$	—		$	14
Current portion of    long-term debt	—		1,250		296		6		—			1,552
Accounts payable	1		372		252		1,093		—			1,718
Intercompany accounts payable	281		3,870		3,115		1,349		(8,615		)	—
Accrued compensation	—		98		58		223		—			379
Other current liabilities	1		591		291		941		(2		)	1,822
Total current liabilities	283		6,181		4,020		3,618		(8,617		)	5,485
Noncurrent liabilities
Long-term debt	—		5,767		936		8		—			6,711
Pension liabilities	—		610		161		888		—			1,659
Other postretirement    benefits liabilities	—		198		99		71		—			368
Deferred income taxes	—		—		732		361		(772		)	321
Intercompany loans payable	17,621		2,603		44,788		1,252		(66,264		)	—
Other noncurrent liabilities	—		327		211		396		—			934
Total noncurrent liabilities	17,621		9,505		46,927		2,976		(67,036		)	9,993
Shareholders’ equity
Eaton shareholders' equity	14,897		11,439		40,387		80,285		(132,111		)	14,897
Noncontrolling interests	—		—		—		38		6			44
Total equity	14,897		11,439		40,387		80,323		(132,105		)	14,941
Total liabilities and equity	$	32,801	$	27,125	$	91,334	$	86,917	$	(207,758	)	$	30,419

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS FOR THE SIX MONTHS ENDED JUNE 30, 2017
	Eaton Corporation plc			Eaton Corporation			Guarantors			Other subsidiaries			Consolidating adjustments			Total
Net cash provided by (used in)    operating activities	$	573		$	(215	)	$	697		$	1,489		$	(1,507	)	$	1,037
Investing activities
Capital expenditures for property,    plant and equipment	—			(46		)	(53		)	(147		)	—			(246		)
Cash received from sales (paid for acquisitions) of affiliates	—			—			(92		)	92			—			—
Sales (purchases) of short-term investments - net	—			—			—			(309		)	—			(309		)
Investments in affiliates	(90		)	—			—			(90		)	180			—
Return of investments in affiliates	—			—			20			—			(20		)	—
Loans to affiliates	—			(17		)	—			(3,853		)	3,870			—
Repayments of loans from affiliates	—			290			47			3,276			(3,613		)	—
Other - net	—			(26		)	7			(12		)	—			(31		)
Net cash provided by (used in) investing activities	(90		)	201			(71		)	(1,043		)	417			(586		)
Financing activities
Proceeds from borrowings	—			811			—			21			—			832
Payments on borrowings	—			(250		)	(289		)	(4		)	—			(543		)
Proceeds from borrowings from    affiliates	1,288			1,873			694			15			(3,870		)	—
Payments on borrowings from    affiliates	(819		)	(2,366		)	(353		)	(75		)	3,613			—
Capital contributions from affiliates	—			—			90			90			(180		)	—
Return of capital to affiliates	—			—			—			(20		)	20			—
Other intercompany financing    activities	—			(113		)	38			75			—			—
Cash dividends paid	(537		)	—			—			—			—			(537		)
Cash dividends paid to affiliates	—			—			(800		)	(707		)	1,507			—
Exercise of employee stock options	49			—			—			—			—			49
Repurchase of shares	(465		)	—			—			—			—			(465		)
Employee taxes paid from shares withheld	—			(14		)	(4		)	(3		)	—			(21		)
Other - net	—			—			(1		)	(3		)	—			(4		)
Net cash provided by (used in)    financing activities	(484		)	(59		)	(625		)	(611		)	1,090			(689		)
Effect of currency on cash	—			—			—			7			—			7
Total increase (decrease) in cash	(1		)	(73		)	1			(158		)	—			(231		)
Cash at the beginning of the period	1			92			4			446			—			543
Cash at the end of the period	$	—		$	19		$	5		$	288		$	—		$	312

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS FOR THE SIX MONTHS ENDED JUNE 30, 2016
	Eaton Corporation plc			Eaton Corporation			Guarantors			Other subsidiaries			Consolidating adjustments			Total
Net cash provided by (used in)    operating activities	$	(156	)	$	33		$	(298	)	$	1,554		$	—		$	1,133
Investing activities
Capital expenditures for property,    plant and equipment	—			(40		)	(49		)	(157		)	—			(246		)
Cash received from (paid for) acquisitions of businesses, net of cash acquired	—			—			1			—			—			1
Sales (purchases) of short-term investments - net	—			—			2			36			—			38
Investments in affiliates	(1,250		)	—			(120		)	(1,370		)	2,740			—
Return of investments in affiliates	—			—			47			—			(47		)	—
Loans to affiliates	—			(284		)	(47		)	(4,236		)	4,567			—
Repayments of loans from affiliates	—			1,280			—			2,922			(4,202		)	—
Other - net	—			2			25			(24		)	—			3
Net cash provided by (used in)    investing activities	(1,250		)	958			(141		)	(2,829		)	3,058			(204		)
Financing activities
Proceeds from borrowings	—			145			—			6			—			151
Payments on borrowings	—			—			(240		)	—			—			(240		)
Proceeds from borrowings from    affiliates	2,203			1,385			786			193			(4,567		)	—
Payments on borrowings from    affiliates	(18		)	(2,493		)	(1,658		)	(33		)	4,202			—
Capital contributions from affiliates	—			—			1,370			1,370			(2,740		)	—
Return of capital to affiliates	—			—			—			(47		)	47			—
Other intercompany financing activities	—			(43		)	183			(140		)	—			—
Cash dividends paid	(521		)	—			—			—			—			(521		)
Exercise of employee stock options	37			—			—			—			—			37
Repurchase of shares	(295		)	—			—			—			—			(295		)
Employee taxes paid from shares withheld	—			(10		)	(4		)	(3		)	—			(17		)
Other - net	—			3			—			—			—			3
Net cash provided by (used in)    financing activities	1,406			(1,013		)	437			1,346			(3,058		)	(882		)
Effect of currency on cash	—			—			—			8			—			8
Total increase (decrease) in cash	—			(22		)	(2		)	79			—			55
Cash at the beginning of the period	—			26			7			235			—			268
Cash at the end of the period	$	—		$	4		$	5		$	314		$	—		$	323

XML

BASIS OF PRESENTATION (Policies)

6 Months Ended

Jun. 30, 2017

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 2016 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.

Share-based Compensation, Option and Incentive Plans Policy

During the first quarter of 2017, the Company adopted Accounting Standards Update 2016-09, Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting, (ASU 2016-09). Upon adoption, the Company recorded deferred tax assets of $48 for all excess tax benefits that had not been previously recognized. This was accomplished through a cumulative-effect adjustment to retained earnings. ASU 2016-09 also requires that all excess tax benefits and deficiencies generated in the current and future periods be recorded as income tax benefit or expense in the reporting period in which they occur. These excess tax benefits and deficiencies, which were previously required to be presented as financing activities on the Company’s Condensed Consolidated Statements of Cash Flows, are now classified as operating activities prospectively. The Company also reclassified $21 and $17 for the first six months of 2017 and 2016, respectively, from operating activities to financing activities on the Company’s Condensed Consolidated Statements of Cash Flows for withholding payments made to taxing authorities from shares withheld from employees. The Company will continue to estimate forfeitures as part of recording equity-based compensation expense.

Reclassifications

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

Recently Issued Accounting Pronouncements

Recently Issued Accounting Pronouncements

In May 2014, the Financial Accounting Standards Board (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.

A cross-functional implementation team has been established consisting of representatives from all of our business segments to review current accounting policies and practices to identify potential differences that would result from applying the requirements of the new standard to revenue contracts. The implementation team performed a review of samples of customer contracts across the Company’s significant revenue streams. Based on this evaluation, most of the revenue streams will be recorded consistently under both the current and new standards. Certain revenue streams will move from point-in-time or multiple elements to over time because of the continuous transfer of control to customers. The Company is also in the process of identifying and implementing the appropriate changes to business processes and controls to support recognition and disclosure under the new standard, including evaluating new qualitative and quantitative disclosures that will include information on the nature, amount, timing and significant judgments impacting revenue from contracts with customers. Eaton plans to adopt the standard as of the first quarter of 2018 using the modified retrospective approach and will record a cumulative adjustment to equity for open contracts as of January 1, 2018. Eaton is continuing to evaluate the impact of ASU 2014-09 and an estimate of the impact to the consolidated financial statements cannot be made at this time.

In February 2016, the Financial Accounting Standards Board 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.

XML

ACQUISITION INTEGRATION CHARGES (Tables)

6 Months Ended

Jun. 30, 2017

Acquisitions Integration Charges [Abstract]

Acquisition Integration Charges

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

	Three months ended June 30				Six months ended June 30
	2017		2016		2017		2016
Electrical Products	$	1	$	1	$	2	$	1
Electrical Systems and Services	—		—		—		1
Total acquisition integration charges before income taxes	1		1		2		2
Income taxes	1		—		1		1
Total after income taxes	$	—	$	1	$	1	$	1
Per ordinary share - diluted	$	—	$	—	$	—	$	—

XML

RESTRUCTURING CHARGES (Tables)

6 Months Ended

Jun. 30, 2017

Restructuring and Related Activities [Abstract]

Restructuring Charges by Type

A summary of restructuring charges by type follows:

	Three months ended June 30				Six months ended June 30
	2017		2016		2017		2016
Workforce reductions	$	17	$	20	$	25	$	77
Plant closings and other	16		15		28		21
Total	$	33	$	35	$	53	$	98

Restructuring Charges by Segment

A summary of restructuring charges by segment follows:

	Three months ended June 30				Six months ended June 30
	2017		2016		2017		2016
Electrical Products	$	11	$	9	$	14	$	26
Electrical Systems & Services	5		3		7		13
Hydraulics	8		18		17		34
Aerospace	—		—		1		4
Vehicle	3		5		5		17
Corporate	6		—		9		4
Total	$	33	$	35	$	53	$	98

Restructuring Liability Rollforward

A summary of liabilities related to workforce reductions, plant closings and other associated costs announced in 2015 follows:

	Workforce reductions			Plant closings and other			Total
Balance at December 31, 2015	$	54		$	—		$	54
Liability recognized	177			34			211
Payments	(116		)	(13		)	(129		)
Other adjustments	(2		)	(20		)	(22		)
Balance at December 31, 2016	113			1			114
Liability recognized	25			28			53
Payments	(56		)	(15		)	(71		)
Other adjustments	(3		)	(9		)	(12		)
Balance at June 30, 2017	$	79		$	5		$	84

XML

GOODWILL (Tables)

6 Months Ended

Jun. 30, 2017

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Goodwill

Change in the carrying amount of goodwill by segment follows:

	Electrical Products		Electrical Systems and Services		Hydraulics		Aerospace		Vehicle		Total
December 31, 2016	$	6,497	$	4,203	$	1,221	$	938	$	342	$	13,201
Translation	166		79		24		5		3		277
June 30, 2017	$	6,663	$	4,282	$	1,245	$	943	$	345	$	13,478

XML

RETIREMENT BENEFIT PLANS (Tables)

6 Months Ended

Jun. 30, 2017

Retirement Benefits [Abstract]

Retirement Benefits Plans Expense

The components of retirement benefits expense follow:

	United States pension benefit expense						Non-United States pension benefit expense						Other postretirement benefits expense
	Three months ended June 30
	2017			2016			2017			2016			2017			2016
Service cost	$	24		$	27		$	18		$	17		$	—		$	1
Interest cost	31			32			14			16			4			5
Expected return on plan assets	(61		)	(62		)	(23		)	(24		)	(1		)	(2		)
Amortization	21			23			12			8			(3		)	(2		)
	15			20			21			17			—			2
Settlements and special termination benefits	17			18			—			—			—			—
Total expense	$	32		$	38		$	21		$	17		$	—		$	2
	United States pension benefit expense						Non-United States pension benefit expense						Other postretirement benefits expense
	Six months ended June 30
	2017			2016			2017			2016			2017			2016
Service cost	$	48		$	55		$	35		$	33		$	1		$	2
Interest cost	62			63			27			32			7			9
Expected return on plan assets	(122		)	(125		)	(46		)	(48		)	(2		)	(3		)
Amortization	41			46			25			17			(6		)	(4		)
	29			39			41			34			—			4
Settlements and special termination benefits	34			39			—			—			—			—
Total expense	$	63		$	78		$	41		$	34		$	—		$	4

XML

EQUITY (Tables)

6 Months Ended

Jun. 30, 2017

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, 2016	$	14,897		$	44		$	14,941
Cumulative-effect adjustment upon adoption of ASU 2016-09	48			—			48
Net income	947			1			948
Other comprehensive income	586			—			586
Cash dividends paid	(537		)	(3		)	(540		)
Issuance of shares under equity-based compensation plans - net	76			—			76
Repurchase of shares	(465		)	—			(465		)
Balance at June 30, 2017	$	15,552		$	42		$	15,594

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, 2016	$	(3,062	)	$	(1,380	)	$	(6	)	$	(4,448	)
Other comprehensive (loss) income    before reclassifications	548			(27		)	(3		)	518
Amounts reclassified from Accumulated other    comprehensive loss (income)	—			64			4			68
Net current-period Other comprehensive    income (loss)	548			37			1			586
Balance at June 30, 2017	$	(2,514	)	$	(1,343	)	$	(5	)	$	(3,862	)

Reclassification Out of Accumulated Other Comprehensive Loss

The reclassifications out of Accumulated other comprehensive loss follow:

	Six months ended June 30, 2017				Consolidated statements of income classification
Amortization of defined benefit pensions and other postretirement benefits items
Actuarial loss and prior service cost	$	(94	)	1
Tax benefit	30
Total, net of tax	(64		)
Gains and (losses) on cash flow hedges
Currency exchange contracts	(5		)		Cost of products sold
Tax benefit	1
Total, net of tax	(4		)
Total reclassifications for the period	$	(68	)

¹ These components of Accumulated other comprehensive loss are included in the computation of net periodic benefit cost. See Note 6 for additional information about pension and other 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 June 30				Six months ended June 30
(Shares in millions)	2017		2016		2017		2016
Net income attributable to Eaton ordinary shareholders	$	515	$	491	$	947	$	895
Weighted-average number of ordinary shares outstanding - diluted	448.6		458.3		449.8		459.0
Less dilutive effect of equity-based compensation	2.3		1.3		2.3		1.2
Weighted-average number of ordinary shares outstanding - basic	446.3		457.0		447.5		457.8
Net income per share attributable to Eaton ordinary shareholders
Diluted	$	1.15	$	1.07	$	2.10	$	1.95
Basic	1.15		1.08		2.12		1.96

XML

FAIR VALUE MEASUREMENTS (Tables)

6 Months Ended

Jun. 30, 2017

Fair Value Disclosures [Abstract]

Summary of Financial Instruments Recognized at Fair Value and Fair Value Measurement Used

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

	Total			Level 1		Level 2			Level 3
June 30, 2017
Cash	$	312		$	312	$	—		$	—
Short-term investments	525			525		—			—
Net derivative contracts	64			—		64			—
December 31, 2016
Cash	$	543		$	543	$	—		$	—
Short-term investments	203			203		—			—
Net derivative contracts	(3		)	—		(3		)	—

XML

DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES (Tables)

6 Months Ended

Jun. 30, 2017

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
June 30, 2017
Derivatives designated as hedges
Fixed-to-floating interest rate  swaps	$	3,715	$	3	$	60	$	1	$	7	Fair value	4 months to 18 years
Forward starting floating-to-fixed  interest rate swaps	450		—		14		—		1		Cash flow	10 years
Interest rate locks	350		—		1		—		1		Cash flow	10 to 30 years
Currency exchange contracts	849		6		2		21		8		Cash flow	1 to 36 months
Total			$	9	$	77	$	22	$	17
Derivatives not designated as  hedges
Currency exchange contracts	$	2,626	$	43			$	26				1 to 12 months
Commodity contracts	4		—				—					1 to 12 months
Total			$	43			$	26
December 31, 2016
Derivatives designated as hedges
Fixed-to-floating interest rate  swaps	$	3,765	$	1	$	65	$	—	$	8	Fair value	3 months to 18 years
Forward starting floating-to-fixed  interest rate swaps	450		—		19		—		1		Cash flow	11 years
Currency exchange contracts	802		11		1		22		17		Cash flow	1 to 36 months
Total			$	12	$	85	$	22	$	26
Derivatives not designated as  hedges
Currency exchange contracts	$	5,333	$	31			$	85				1 to 12 months
Commodity contracts	10		2				—					1 to 12 months
Total			$	33			$	85

Amounts Recognized in Accumulated Other Comprehensive Loss

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 June 30							Three months ended June 30
	2017			2016				2017			2016
Derivatives designated as    cash flow hedges
Forward starting floating-to-fixed  interest rate swaps	$	(5	)	$	(10	)	Interest expense - net	$	—		$	—
Currency exchange contracts	2			(10		)	Cost of products sold	(1		)	(2		)
Total	$	(3	)	$	(20	)		$	(1	)	$	(2	)
	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
	Six months ended June 30							Six months ended June 30
	2017			2016				2017			2016
Derivatives designated as cash flow hedges
Forward starting floating-to-fixed interest rate swaps	$	(5	)	$	(19	)	Interest expense - net	$	—		$	—
Currency exchange contracts	1			(32		)	Cost of products sold	(5		)	1
Total	$	(4	)	$	(51	)		$	(5	)	$	1

Amounts recognized in Net Income

Amounts recognized in net income follow:

	Three months ended June 30						Six months ended June 30
	2017			2016			2017			2016
Derivatives designated as fair value hedges
Fixed-to-floating interest rate swaps	$	8		$	30		$	(3	)	$	106
Related long-term debt converted to floating interest    rates by interest rate swaps	(8		)	(30		)	3			(106		)
	$	—		$	—		$	—		$	—

XML

INVENTORY (Tables)

6 Months Ended

Jun. 30, 2017

Inventory Disclosure [Abstract]

Components of Inventory

The components of inventory follow:

	June 30, 2017			December 31, 2016
Raw materials	$	924		$	880
Work-in-process	432			396
Finished goods	1,137			1,074
Inventory at FIFO	2,493			2,350
Excess of FIFO over LIFO cost	(100		)	(96		)
Total inventory	$	2,393		$	2,254

XML

BUSINESS SEGMENT INFORMATION (Tables)

6 Months Ended

Jun. 30, 2017

Segment Reporting [Abstract]

Business Segment Information

	Three months ended June 30						Six months ended June 30
	2017			2016			2017			2016
Net sales
Electrical Products	$	1,802		$	1,784		$	3,514		$	3,464
Electrical Systems and Services	1,414			1,429			2,747			2,771
Hydraulics	633			589			1,220			1,140
Aerospace	437			447			865			892
Vehicle	846			831			1,634			1,626
Total net sales	$	5,132		$	5,080		$	9,980		$	9,893
Segment operating profit
Electrical Products	$	314		$	322		$	611		$	593
Electrical Systems and Services	194			178			349			337
Hydraulics	74			59			134			100
Aerospace	81			83			160			163
Vehicle	139			137			247			255
Total segment operating profit	802			779			1,501			1,448
Corporate
Amortization of intangible assets	(96		)	(98		)	(190		)	(198		)
Interest expense - net	(60		)	(57		)	(121		)	(114		)
Pension and other postretirement benefits expense	(11		)	(13		)	(22		)	(27		)
Other corporate expense - net	(65		)	(58		)	(134		)	(114		)
Income before income taxes	570			553			1,034			995
Income tax expense	54			61			86			100
Net income	516			492			948			895
Less net income for noncontrolling interests	(1		)	(1		)	(1		)	—
Net income attributable to Eaton ordinary shareholders	$	515		$	491		$	947		$	895

XML

CONDENSED CONSOLIDATING FINANCIAL STATEMENTS (Tables)

6 Months Ended

Jun. 30, 2017

Condensed Consolidating Financial Information [Abstract]

Condensed Consolidating Financial Statements

CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME FOR THE THREE MONTHS ENDED JUNE 30, 2017
	Eaton Corporation plc			Eaton Corporation			Guarantors			Other subsidiaries			Consolidating adjustments			Total
Net sales	$	—		$	1,696		$	1,672		$	3,164		$	(1,400	)	$	5,132
Cost of products sold	—			1,373			1,225			2,248			(1,396		)	3,450
Selling and administrative expense	34			342			197			329			—			902
Research and development expense	—			57			53			40			—			150
Interest expense (income) - net	—			58			6			(4		)	—			60
Other expense (income) - net	41			7			(37		)	(11		)	—			—
Equity in loss (earnings) of    subsidiaries, net of tax	(704		)	(185		)	(853		)	(114		)	1,856			—
Intercompany expense (income) - net	114			(34		)	339			(419		)	—			—
Income (loss) before income taxes	515			78			742			1,095			(1,860		)	570
Income tax expense (benefit)	—			3			3			51			(3		)	54
Net income (loss)	515			75			739			1,044			(1,857		)	516
Less net loss (income) for    noncontrolling interests	—			—			—			(1		)	—			(1		)
Net income (loss) attributable to    Eaton ordinary shareholders	$	515		$	75		$	739		$	1,043		$	(1,857	)	$	515
Other comprehensive income (loss)	$	323		$	(10	)	$	322		$	408		$	(720	)	$	323
Total comprehensive income   (loss) attributable to Eaton   ordinary shareholders	$	838		$	65		$	1,061		$	1,451		$	(2,577	)	$	838

CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME FOR THE THREE MONTHS ENDED JUNE 30, 2016
	Eaton Corporation plc			Eaton Corporation			Guarantors			Other subsidiaries			Consolidating adjustments			Total
Net sales	$	—		$	1,644		$	1,648		$	3,057		$	(1,269	)	$	5,080
Cost of products sold	—			1,263			1,203			2,224			(1,271		)	3,419
Selling and administrative expense	2			351			198			346			—			897
Research and development expense	—			55			47			47			—			149
Interest expense (income) - net	—			57			6			(7		)	1			57
Other expense (income) - net	—			3			6			(4		)	—			5
Equity in loss (earnings) of    subsidiaries, net of tax	(594		)	(154		)	(811		)	(132		)	1,691			—
Intercompany expense (income) - net	101			(34		)	313			(380		)	—			—
Income (loss) before income taxes	491			103			686			963			(1,690		)	553
Income tax expense (benefit)	—			13			12			36			—			61
Net income (loss)	491			90			674			927			(1,690		)	492
Less net loss (income) for    noncontrolling interests	—			—			—			(2		)	1			(1		)
Net income (loss) attributable to    Eaton ordinary shareholders	$	491		$	90		$	674		$	925		$	(1,689	)	$	491
Other comprehensive income (loss)	$	(255	)	$	—		$	(248	)	$	(319	)	$	567		$	(255	)
Total comprehensive income    (loss) attributable to Eaton    ordinary shareholders	$	236		$	90		$	426		$	606		$	(1,122	)	$	236

CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME FOR THE SIX MONTHS ENDED JUNE 30, 2017
	Eaton Corporation plc			Eaton Corporation			Guarantors			Other subsidiaries			Consolidating adjustments			Total
Net sales	$	—		$	3,268		$	3,267		$	6,155		$	(2,710	)	$	9,980
Cost of products sold	—			2,626			2,413			4,429			(2,708		)	6,760
Selling and administrative expense	66			668			391			662			—			1,787
Research and development expense	—			111			100			82			—			293
Interest expense (income) - net	—			118			11			(8		)	—			121
Other expense (income) - net	48			7			(38		)	(32		)	—			(15		)
Equity in loss (earnings) of    subsidiaries, net of tax	(1,285		)	(375		)	(1,725		)	(225		)	3,610			—
Intercompany expense (income) - net	224			(73		)	672			(823		)	—			—
Income (loss) before income taxes	947			186			1,443			2,070			(3,612		)	1,034
Income tax expense (benefit)	—			—			19			68			(1		)	86
Net income (loss)	947			186			1,424			2,002			(3,611		)	948
Less net loss (income) for    noncontrolling interests	—			—			—			(2		)	1			(1		)
Net income (loss) attributable to    Eaton ordinary shareholders	$	947		$	186		$	1,424		$	2,000		$	(3,610	)	$	947
Other comprehensive income (loss)	$	586		$	50		$	592		$	731		$	(1,373	)	$	586
Total comprehensive income    (loss) attributable to Eaton    ordinary shareholders	$	1,533		$	236		$	2,016		$	2,731		$	(4,983	)	$	1,533

CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME FOR THE SIX MONTHS ENDED JUNE 30, 2016
	Eaton Corporation plc			Eaton Corporation			Guarantors			Other subsidiaries			Consolidating adjustments			Total
Net sales	$	—		$	3,182		$	3,223		$	5,930		$	(2,442	)	$	9,893
Cost of products sold	—			2,459			2,403			4,294			(2,446		)	6,710
Selling and administrative expense	4			716			394			675			—			1,789
Research and development expense	—			117			96			85			—			298
Interest expense (income) - net	—			110			9			(10		)	5			114
Other expense (income) - net	—			1			4			(18		)	—			(13		)
Equity in loss (earnings) of    subsidiaries, net of tax	(1,098		)	(322		)	(1,484		)	(229		)	3,133			—
Intercompany expense (income) - net	199			(70		)	568			(697		)	—			—
Income (loss) before income taxes	895			171			1,233			1,830			(3,134		)	995
Income tax expense (benefit)	—			20			13			67			—			100
Net income (loss)	895			151			1,220			1,763			(3,134		)	895
Less net loss (income) for    noncontrolling interests	—			—			—			(2		)	2			—
Net income (loss) attributable to    Eaton ordinary shareholders	$	895		$	151		$	1,220		$	1,761		$	(3,132	)	$	895
Other comprehensive income (loss)	$	18		$	44		$	30		$	(10	)	$	(64	)	$	18
Total comprehensive income (loss) attributable to Eaton ordinary shareholders	$	913		$	195		$	1,250		$	1,751		$	(3,196	)	$	913

CONDENSED CONSOLIDATING BALANCE SHEETS JUNE 30, 2017
	Eaton Corporation plc		Eaton Corporation		Guarantors		Other subsidiaries		Consolidating adjustments			Total
Assets
Current assets
Cash	$	—	$	19	$	5	$	288	$	—		$	312
Short-term investments	—		—		—		525		—			525
Accounts receivable - net	—		525		1,169		2,119		—			3,813
Intercompany accounts    receivable	2		752		3,524		3,596		(7,874		)	—
Inventory	—		332		655		1,487		(81		)	2,393
Prepaid expenses and    other current assets	—		108		48		261		27			444
Total current assets	2		1,736		5,401		8,276		(7,928		)	7,487
Property, plant and    equipment - net	—		843		696		1,991		—			3,530
Other noncurrent assets
Goodwill	—		1,355		6,293		5,830		—			13,478
Other intangible assets	—		162		3,351		1,897		—			5,410
Deferred income taxes	—		927		—		243		(727		)	443
Investment in subsidiaries	34,028		13,827		74,853		12,886		(135,594		)	—
Intercompany loans receivable	—		7,695		2,481		57,519		(67,695		)	—
Other assets	—		504		141		362		—			1,007
Total assets	$	34,030	$	27,049	$	93,216	$	89,004	$	(211,944	)	$	31,355
Liabilities and    shareholders’ equity
Current liabilities
Short-term debt	$	—	$	811	$	—	$	35	$	—		$	846
Current portion of    long-term debt	—		1,456		36		3		—			1,495
Accounts payable	—		457		266		1,162		—			1,885
Intercompany accounts payable	216		3,232		3,213		1,213		(7,874		)	—
Accrued compensation	—		78		42		218		—			338
Other current liabilities	1		536		300		910		(2		)	1,745
Total current liabilities	217		6,570		3,857		3,541		(7,876		)	6,309
Noncurrent liabilities
Long-term debt	—		5,310		946		8		—			6,264
Pension liabilities	—		531		137		910		—			1,578
Other postretirement    benefits liabilities	—		194		98		72		—			364
Deferred income taxes	—		—		680		363		(727		)	316
Intercompany loans payable	18,261		2,374		45,618		1,442		(67,695		)	—
Other noncurrent liabilities	—		321		225		384		—			930
Total noncurrent liabilities	18,261		8,730		47,704		3,179		(68,422		)	9,452
Shareholders’ equity
Eaton shareholders' equity	15,552		11,749		41,655		82,247		(135,651		)	15,552
Noncontrolling interests	—		—		—		37		5			42
Total equity	15,552		11,749		41,655		82,284		(135,646		)	15,594
Total liabilities and equity	$	34,030	$	27,049	$	93,216	$	89,004	$	(211,944	)	$	31,355

CONDENSED CONSOLIDATING BALANCE SHEETS DECEMBER 31, 2016
	Eaton Corporation plc		Eaton Corporation		Guarantors		Other subsidiaries		Consolidating adjustments			Total
Assets
Current assets
Cash	$	1	$	92	$	4	$	446	$	—		$	543
Short-term investments	—		—		—		203		—			203
Accounts receivable - net	—		536		1,049		1,975		—			3,560
Intercompany accounts    receivable	5		954		4,023		3,633		(8,615		)	—
Inventory	—		342		642		1,349		(79		)	2,254
Prepaid expenses and    other current assets	—		77		42		237		25			381
Total current assets	6		2,001		5,760		7,843		(8,669		)	6,941
Property, plant and    equipment - net	—		857		706		1,880		—			3,443
Other noncurrent assets
Goodwill	—		1,355		6,293		5,553		—			13,201
Other intangible assets	—		169		3,442		1,903		—			5,514
Deferred income taxes	—		904		—		228		(772		)	360
Investment in subsidiaries	32,795		13,743		72,938		12,577		(132,053		)	—
Intercompany loans receivable	—		7,605		2,061		56,598		(66,264		)	—
Other assets	—		491		134		335		—			960
Total assets	$	32,801	$	27,125	$	91,334	$	86,917	$	(207,758	)	$	30,419
Liabilities and    shareholders’ equity
Current liabilities
Short-term debt	$	—	$	—	$	8	$	6	$	—		$	14
Current portion of    long-term debt	—		1,250		296		6		—			1,552
Accounts payable	1		372		252		1,093		—			1,718
Intercompany accounts payable	281		3,870		3,115		1,349		(8,615		)	—
Accrued compensation	—		98		58		223		—			379
Other current liabilities	1		591		291		941		(2		)	1,822
Total current liabilities	283		6,181		4,020		3,618		(8,617		)	5,485
Noncurrent liabilities
Long-term debt	—		5,767		936		8		—			6,711
Pension liabilities	—		610		161		888		—			1,659
Other postretirement    benefits liabilities	—		198		99		71		—			368
Deferred income taxes	—		—		732		361		(772		)	321
Intercompany loans payable	17,621		2,603		44,788		1,252		(66,264		)	—
Other noncurrent liabilities	—		327		211		396		—			934
Total noncurrent liabilities	17,621		9,505		46,927		2,976		(67,036		)	9,993
Shareholders’ equity
Eaton shareholders' equity	14,897		11,439		40,387		80,285		(132,111		)	14,897
Noncontrolling interests	—		—		—		38		6			44
Total equity	14,897		11,439		40,387		80,323		(132,105		)	14,941
Total liabilities and equity	$	32,801	$	27,125	$	91,334	$	86,917	$	(207,758	)	$	30,419

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS FOR THE SIX MONTHS ENDED JUNE 30, 2017
	Eaton Corporation plc			Eaton Corporation			Guarantors			Other subsidiaries			Consolidating adjustments			Total
Net cash provided by (used in)    operating activities	$	573		$	(215	)	$	697		$	1,489		$	(1,507	)	$	1,037
Investing activities
Capital expenditures for property,    plant and equipment	—			(46		)	(53		)	(147		)	—			(246		)
Cash received from sales (paid for acquisitions) of affiliates	—			—			(92		)	92			—			—
Sales (purchases) of short-term investments - net	—			—			—			(309		)	—			(309		)
Investments in affiliates	(90		)	—			—			(90		)	180			—
Return of investments in affiliates	—			—			20			—			(20		)	—
Loans to affiliates	—			(17		)	—			(3,853		)	3,870			—
Repayments of loans from affiliates	—			290			47			3,276			(3,613		)	—
Other - net	—			(26		)	7			(12		)	—			(31		)
Net cash provided by (used in) investing activities	(90		)	201			(71		)	(1,043		)	417			(586		)
Financing activities
Proceeds from borrowings	—			811			—			21			—			832
Payments on borrowings	—			(250		)	(289		)	(4		)	—			(543		)
Proceeds from borrowings from    affiliates	1,288			1,873			694			15			(3,870		)	—
Payments on borrowings from    affiliates	(819		)	(2,366		)	(353		)	(75		)	3,613			—
Capital contributions from affiliates	—			—			90			90			(180		)	—
Return of capital to affiliates	—			—			—			(20		)	20			—
Other intercompany financing    activities	—			(113		)	38			75			—			—
Cash dividends paid	(537		)	—			—			—			—			(537		)
Cash dividends paid to affiliates	—			—			(800		)	(707		)	1,507			—
Exercise of employee stock options	49			—			—			—			—			49
Repurchase of shares	(465		)	—			—			—			—			(465		)
Employee taxes paid from shares withheld	—			(14		)	(4		)	(3		)	—			(21		)
Other - net	—			—			(1		)	(3		)	—			(4		)
Net cash provided by (used in)    financing activities	(484		)	(59		)	(625		)	(611		)	1,090			(689		)
Effect of currency on cash	—			—			—			7			—			7
Total increase (decrease) in cash	(1		)	(73		)	1			(158		)	—			(231		)
Cash at the beginning of the period	1			92			4			446			—			543
Cash at the end of the period	$	—		$	19		$	5		$	288		$	—		$	312

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS FOR THE SIX MONTHS ENDED JUNE 30, 2016
	Eaton Corporation plc			Eaton Corporation			Guarantors			Other subsidiaries			Consolidating adjustments			Total
Net cash provided by (used in)    operating activities	$	(156	)	$	33		$	(298	)	$	1,554		$	—		$	1,133
Investing activities
Capital expenditures for property,    plant and equipment	—			(40		)	(49		)	(157		)	—			(246		)
Cash received from (paid for) acquisitions of businesses, net of cash acquired	—			—			1			—			—			1
Sales (purchases) of short-term investments - net	—			—			2			36			—			38
Investments in affiliates	(1,250		)	—			(120		)	(1,370		)	2,740			—
Return of investments in affiliates	—			—			47			—			(47		)	—
Loans to affiliates	—			(284		)	(47		)	(4,236		)	4,567			—
Repayments of loans from affiliates	—			1,280			—			2,922			(4,202		)	—
Other - net	—			2			25			(24		)	—			3
Net cash provided by (used in)    investing activities	(1,250		)	958			(141		)	(2,829		)	3,058			(204		)
Financing activities
Proceeds from borrowings	—			145			—			6			—			151
Payments on borrowings	—			—			(240		)	—			—			(240		)
Proceeds from borrowings from    affiliates	2,203			1,385			786			193			(4,567		)	—
Payments on borrowings from    affiliates	(18		)	(2,493		)	(1,658		)	(33		)	4,202			—
Capital contributions from affiliates	—			—			1,370			1,370			(2,740		)	—
Return of capital to affiliates	—			—			—			(47		)	47			—
Other intercompany financing activities	—			(43		)	183			(140		)	—			—
Cash dividends paid	(521		)	—			—			—			—			(521		)
Exercise of employee stock options	37			—			—			—			—			37
Repurchase of shares	(295		)	—			—			—			—			(295		)
Employee taxes paid from shares withheld	—			(10		)	(4		)	(3		)	—			(17		)
Other - net	—			3			—			—			—			3
Net cash provided by (used in)    financing activities	1,406			(1,013		)	437			1,346			(3,058		)	(882		)
Effect of currency on cash	—			—			—			8			—			8
Total increase (decrease) in cash	—			(22		)	(2		)	79			—			55
Cash at the beginning of the period	—			26			7			235			—			268
Cash at the end of the period	$	—		$	4		$	5		$	314		$	—		$	323

XML

BASIS OF PRESENTATION (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Deferred Tax Asset recognized adoption of ASU 2016-09	$ 48
Reclassifications due to adoption of ASU 2016-09	$ 21	$ 17

XML

FORMATION OF A JOINT VENTURE (Details) $ in Millions	Jun. 30, 2017 USD ($)
Business Acquisition [Line Items]
Interest in Joint Venture	50.00%
Proceeds from Joint Venture	$ 600

XML

ACQUISITION AND INTEGRATION CHARGES (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Acquisition integration charges [Line Items]
Acquisition integration charges	$ 1	$ 1	$ 2	$ 2
Income taxes	1	0	1	1
Total after income taxes	$ 0	$ 1	$ 1	$ 1
Per ordinary share - diluted (dollars per share)	$ 0.00	$ 0.00	$ 0.00	$ 0.00
Electrical Products [Member]
Acquisition integration charges [Line Items]
Acquisition integration charges	$ 1	$ 1	$ 2	$ 1
Electrical Systems and Services [Member]
Acquisition integration charges [Line Items]
Acquisition integration charges	$ 0	$ 0	$ 0	$ 1

XML

RESTRUCTURING CHARGES - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016	Dec. 31, 2017
Restructuring Cost and Reserve [Line Items]
Liability recognized	$ 33	$ 35	$ 53	$ 98	$ 211
Employee Severance [Member]
Restructuring Cost and Reserve [Line Items]
Liability recognized			$ 25		$ 177
Scenario, Forecast [Member] | Employee Severance [Member]
Restructuring Cost and Reserve [Line Items]
Charges associated with restructuring activities						$ 100

XML

RESTRUCTURING CHARGES - Summary of Restructuring Charges by Type (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
Restructuring and Related Activities [Abstract]
Workforce reductions	$ 17	$ 20	$ 25	$ 77
Plant closings and other	16	15	28	21
Total	$ 33	$ 35	$ 53	$ 98	$ 211

XML

RESTRUCTURING CHARGES - Summary of Restructuring Charges by Segment (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
Restructuring Cost and Reserve [Line Items]
Restructuring charges	$ 33	$ 35	$ 53	$ 98	$ 211
Electrical Products [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring charges	11	9	14	26
Electrical Systems and Services [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring charges	5	3	7	13
Hydraulics [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring charges	8	18	17	34
Aerospace [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring charges	0	0	1	4
Vehicle [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring charges	3	5	5	17
Corporate, Non-Segment [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring charges	$ 6	$ 0	$ 9	$ 4

XML

RESTRUCTURING CHARGES - Restructuring Roll Forward (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
Restructuring Reserve [Roll Forward]
Beginning balance			$ 114	$ 54	$ 54
Liability recognized	$ 33	$ 35	53	98	211
Payments			(71)		(129)
Other adjustments			(12)		(22)
Ending balance	84		84		114
Workforce reductions [Member]
Restructuring Reserve [Roll Forward]
Beginning balance			113	54	54
Liability recognized			25		177
Payments			(56)		(116)
Other adjustments			(3)		(2)
Ending balance	79		79		113
Plant closings and other [Member]
Restructuring Reserve [Roll Forward]
Beginning balance			1	$ 0	0
Liability recognized			28		34
Payments			(15)		(13)
Other adjustments			(9)		(20)
Ending balance	$ 5		$ 5		$ 1

XML

GOODWILL (Details) $ in Millions	6 Months Ended
	Jun. 30, 2017 USD ($)
Goodwill [Roll Forward]
Beginning balance	$ 13,201
Translation	277
Ending balance	13,478
Electrical Products [Member]
Goodwill [Roll Forward]
Beginning balance	6,497
Translation	166
Ending balance	6,663
Electrical Systems and Services [Member]
Goodwill [Roll Forward]
Beginning balance	4,203
Translation	79
Ending balance	4,282
Hydraulics [Member]
Goodwill [Roll Forward]
Beginning balance	1,221
Translation	24
Ending balance	1,245
Aerospace [Member]
Goodwill [Roll Forward]
Beginning balance	938
Translation	5
Ending balance	943
Vehicle [Member]
Goodwill [Roll Forward]
Beginning balance	342
Translation	3
Ending balance	$ 345

XML

RETIREMENT BENEFIT PLANS (Details) BRL in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2017 USD ($)	Jun. 30, 2016 USD ($)	Jun. 30, 2017 BRL	Jun. 30, 2017 USD ($)	Jun. 30, 2016 USD ($)
Pension plan | United States pension benefit expense
Retirement benefits plans expense
Service cost	$ 24	$ 27		$ 48	$ 55
Interest cost	31	32		62	63
Expected return on plan assets	(61)	(62)		(122)	(125)
Amortization	21	23		41	46
Defined Benefit Plan, Cost of Providing Special and Contractual Termination Benefits	17	18		34	39
Total	15	20		29	39
Total expense	32	38		63	78
Pension plan | Non-United States pension benefit expense
Retirement benefits plans expense
Service cost	18	17		35	33
Interest cost	14	16		27	32
Expected return on plan assets	(23)	(24)		(46)	(48)
Amortization	12	8		25	17
Defined Benefit Plan, Cost of Providing Special and Contractual Termination Benefits	0	0	BRL 0		0
Total	21	17		41	34
Total expense	21	17		41	34
Other postretirement benefits expense
Retirement benefits plans expense
Service cost	0	1		1	2
Interest cost	4	5		7	9
Expected return on plan assets	(1)	(2)		(2)	(3)
Amortization	(3)	(2)		(6)	(4)
Defined Benefit Plan, Cost of Providing Special and Contractual Termination Benefits	0	0		0	0
Total	0	2		0	4
Total expense	$ 0	$ 2		$ 0	$ 4

XML

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

XML

INCOME TAXES (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Income Tax Contingency [Line Items]
Effective tax rate	10.00%	11.00%	8.00%	10.00%
2011 Notice [Member]
Income Tax Contingency [Line Items]
IRS Statutory Notice of Deficiency proposed assessment of additional federal taxes	$ 75		$ 75
Penalties associated with IRS Statutory Notice of Deficiency proposed assessment	$ 52		$ 52

XML

EQUITY - Changes in Shareholders's Equity (Details) - USD ($) shares in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Accumulated Other Comprehensive Income (Loss) [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	0.2	1.5	0.7	1.9
Changes in Shareholders' equity
Beginning balance			$ 14,941
Cumulative Effect of New Accounting Principle in Period of Adoption	$ 48		48
Net income (loss)	516	$ 492	948	$ 895
Other comprehensive income	323	$ (255)	586	$ 18
Cash dividends paid			(540)
Issuance of shares under equity-based compensation plans - net			76
Repurchase of shares			(465)
Ending balance	15,594		15,594
Parent [Member]
Changes in Shareholders' equity
Beginning balance			14,897
Cumulative Effect of New Accounting Principle in Period of Adoption	48		48
Net income (loss)			947
Other comprehensive income			586
Cash dividends paid			(537)
Issuance of shares under equity-based compensation plans - net			76
Repurchase of shares			(465)
Ending balance	15,552		15,552
Noncontrolling Interest [Member]
Changes in Shareholders' equity
Beginning balance			44
Cumulative Effect of New Accounting Principle in Period of Adoption	0		0
Net income (loss)			1
Other comprehensive income			0
Cash dividends paid			(3)
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]
Ordinary shares purchased (in shares)		1.5
Changes in Shareholders' equity
Repurchase of shares		$ (82)
2016 Program [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Ordinary shares purchased (in shares)	2.7	3.7	6.3	4.0
Amount of shares repurchased (up to)	$ 2,500		$ 2,500
Changes in Shareholders' equity
Repurchase of shares	$ (210)	$ (224)	$ (465)	$ (242)

XML

EQUITY - Changes in Accumulated Other Comprehensive (Loss) Income (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Amounts reclassified from Accumulated other comprehensive loss (income)			$ 68
Net current-period Other comprehensive income (loss)	$ 323	$ (255)	586	$ 18
Currency translation and related hedging instruments [Member]
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance			(3,062)
Other comprehensive (loss) income before reclassifications			548
Amounts reclassified from Accumulated other comprehensive loss (income)			0
Net current-period Other comprehensive income (loss)			548
Ending balance	(2,514)		(2,514)
Pensions and other postretirement benefits [Member]
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance			(1,380)
Other comprehensive (loss) income before reclassifications			(27)
Amounts reclassified from Accumulated other comprehensive loss (income)			64
Net current-period Other comprehensive income (loss)			37
Ending balance	(1,343)		(1,343)
Cash flow hedges [Member]
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance			(6)
Other comprehensive (loss) income before reclassifications			(3)
Amounts reclassified from Accumulated other comprehensive loss (income)			4
Net current-period Other comprehensive income (loss)			1
Ending balance	(5)		(5)
Total AOCI Attributable to Parent [Member]
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance			(4,448)
Other comprehensive (loss) income before reclassifications			518
Amounts reclassified from Accumulated other comprehensive loss (income)			68
Net current-period Other comprehensive income (loss)			586
Ending balance	$ (3,862)		$ (3,862)

XML

EQUITY - Reclassifications Out of Accumulated Other Comprehensive Loss (Details) $ in Millions	6 Months Ended
	Jun. 30, 2017 USD ($)
Stockholders' Equity Note [Abstract]
Actuarial loss and prior service cost	$ (94)	[1]
Tax benefit	30
Total, net of tax	(64)
Currency exchange contracts	(5)
Tax benefit	1
Total, net of tax	(4)
Total reclassifications for the period	$ (68)

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

XML

EQUITY - Calculation of Net Income per Ordinary Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Calculation of net income per ordinary share attributable to ordinary shareholders
Net income attributable to Eaton ordinary shareholders	$ 515	$ 491	$ 947	$ 895
Weighted-average number of ordinary shares outstanding - diluted (shares)	448.6	458.3	449.8	459.0
Less dilutive effect of equity-based compensation (shares)	2.3	1.3	2.3	1.2
Weighted-average number of ordinary shares outstanding - basic (shares)	446.3	457.0	447.5	457.8
Net income per share attributable to Eaton ordinary shareholders
Diluted (usd per share)	$ 1.15	$ 1.07	$ 2.10	$ 1.95
Basic (usd per share)	$ 1.15	$ 1.08	$ 2.12	$ 1.96
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	0.2	1.5	0.7	1.9

XML

FAIR VALUE MEASUREMENTS - Summary of Financial Instruments at Fair Value (Details) - USD ($) $ in Millions	Jun. 30, 2017	Dec. 31, 2016	Jun. 30, 2016	Dec. 31, 2015
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items]
Cash	$ 312	$ 543	$ 323	$ 268
Short-term investments	525	203
Net derivative contracts	64	(3)
Level 1 [Member]
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items]
Cash	312	543
Short-term investments	525	203
Net derivative contracts	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	64	(3)
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

XML

FAIR VALUE MEASUREMENTS - Other Fair Value Measurements (Details) - USD ($) $ in Millions	Jun. 30, 2017	Dec. 31, 2016
Other Fair Value Measurements [Line Items]
Carrying value of long-term debt and current portion of long-term debt	$ 7,759	$ 8,263
Level 2 [Member]
Other Fair Value Measurements [Line Items]
Fair value of long-term debt and current portion of long-term debt	$ 8,093	$ 8,477

XML

DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES - Derivative Financial Instrument Recognized in the Consolidated Balance sheet (Details) - USD ($) $ in Millions	6 Months Ended	12 Months Ended
	Jun. 30, 2017	Dec. 31, 2016
Derivatives, Fair Value [Line Items]
Foreign Currency Note Payable, Noncurrent, after-tax	$ 89	$ 86
Foreign Currency Note Payable, Noncurrent, pre-tax	$ 620	572
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	$ 9	12
Derivatives not designated as hedges
Derivative instruments not designated as hedging instruments, asset, at fair value	43	33
Other noncurrent assets [Member]
Derivatives designated as hedges
Derivative asset designated as hedging instrument	77	85
Other current liabilities [Member]
Derivatives designated as hedges
Derivative liability designated as hedging instrument	22	22
Derivatives not designated as hedges
Derivative instruments not designated as hedging instruments, liability, at fair value	26	85
Other noncurrent liabilities [Member]
Derivatives designated as hedges
Derivative liability designated as hedging instrument	17	26
Currency exchange contracts [Member] | Other current assets [Member]
Derivatives not designated as hedges
Derivative instruments not designated as hedging instruments, asset, at fair value	43	31
Currency exchange contracts [Member] | Other current liabilities [Member]
Derivatives not designated as hedges
Derivative instruments not designated as hedging instruments, liability, at fair value	26	85
Commodity contracts [Member] | Other current assets [Member]
Derivatives not designated as hedges
Derivative instruments not designated as hedging instruments, asset, at fair value	0	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	0
Derivatives designated as hedges [Member] | Fair value hedging [Member] | Fixed-to-floating interest rate swaps [Member]
Derivatives designated as hedges
Notional amount	3,715	3,765
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	3	1
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	60	65
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	1	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	7	8
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	450
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	14	19
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	1	1
Derivatives designated as hedges [Member] | Cash Flow Hedging [Member] | Interest Rate Lock Commitments [Member]
Derivatives designated as hedges
Notional amount	350
Derivatives designated as hedges [Member] | Cash Flow Hedging [Member] | Interest Rate Lock Commitments [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] | Interest Rate Lock Commitments [Member] | Other noncurrent assets [Member]
Derivatives designated as hedges
Derivative asset designated as hedging instrument	1
Derivatives designated as hedges [Member] | Cash Flow Hedging [Member] | Interest Rate Lock Commitments [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] | Interest Rate Lock Commitments [Member] | Other noncurrent liabilities [Member]
Derivatives designated as hedges
Derivative liability designated as hedging instrument	1
Derivatives designated as hedges [Member] | Cash Flow Hedging [Member] | Currency exchange contracts [Member]
Derivatives designated as hedges
Notional amount	849	802
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	6	11
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	2	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	21	22
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	8	17
Derivatives not designated as hedges [Member] | Currency exchange contracts [Member]
Derivatives designated as hedges
Notional amount	2,626	5,333
Derivatives not designated as hedges [Member] | Commodity contracts [Member]
Derivatives designated as hedges
Notional amount	$ 4	$ 10
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	4 months	3 months
Minimum [Member] | Derivatives designated as hedges [Member] | Cash Flow Hedging [Member] | Forward Starting Floating-to-Fixed Interest Rate Swap [Member]
Derivatives, Fair Value [Line Items]
Derivative, term of contract	10 years	11 years
Minimum [Member] | Derivatives designated as hedges [Member] | Cash Flow Hedging [Member] | Interest Rate Lock Commitments [Member]
Derivatives, Fair Value [Line Items]
Derivative, term of contract	10 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 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	1 month
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	18 years	18 years
Maximum [Member] | Derivatives designated as hedges [Member] | Cash Flow Hedging [Member] | Forward Starting Floating-to-Fixed Interest Rate Swap [Member]
Derivatives, Fair Value [Line Items]
Derivative, term of contract	10 years	11 years
Maximum [Member] | Derivatives designated as hedges [Member] | Cash Flow Hedging [Member] | Interest Rate Lock Commitments [Member]
Derivatives, Fair Value [Line Items]
Derivative, term of contract	30 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 not designated as hedges [Member] | Currency exchange contracts [Member]
Derivatives, Fair Value [Line Items]
Derivative, term of contract	12 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	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		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
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	$ (5)	$ (10)	$ (5)	$ (19)
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	2	(10)	1	(32)
Gain (loss) reclassified from Accumulated other comprehensive loss	(1)	(2)	(5)	1
Cost of products sold or Interest expense - net [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) recognized in other comprehensive (loss) income	(3)	(20)	(4)	(51)
Gain (loss) reclassified from Accumulated other comprehensive loss	$ (1)	$ (2)	$ (5)	$ 1

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		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
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	8	30	(3)	106
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	$ (8)	$ (30)	$ 3	$ (106)

XML

INVENTORY (Details) - USD ($) $ in Millions	Jun. 30, 2017	Dec. 31, 2016
Inventory Disclosure [Abstract]
Raw materials	$ 924	$ 880
Work-in-process	432	396
Finished goods	1,137	1,074
Inventory at FIFO	2,493	2,350
Excess of FIFO over LIFO cost	(100)	(96)
Total inventory	$ 2,393	$ 2,254

XML

BUSINESS SEGMENT INFORMATION (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Business Segment Information
Net sales	$ 5,132	$ 5,080	$ 9,980	$ 9,893
Corporate
Interest expense - net	60	57	121	114
Pension and other postretirement benefits expense			(104)	(116)
Other corporate expense - net	0	5	(15)	(13)
Income before income taxes	570	553	1,034	995
Income tax expense	54	61	86	100
Net income	516	492	948	895
Less net income for noncontrolling interests	(1)	(1)	(1)	0
Net income attributable to Eaton ordinary shareholders	515	491	947	895
Total business segments [Member]
Business Segment Information
Net sales	5,132	5,080	9,980	9,893
Segment operating profit	802	779	1,501	1,448
Total business segments [Member] | Electrical Products [Member]
Business Segment Information
Net sales	1,802	1,784	3,514	3,464
Segment operating profit	314	322	611	593
Total business segments [Member] | Electrical Systems and Services [Member]
Business Segment Information
Net sales	1,414	1,429	2,747	2,771
Segment operating profit	194	178	349	337
Total business segments [Member] | Hydraulics [Member]
Business Segment Information
Net sales	633	589	1,220	1,140
Segment operating profit	74	59	134	100
Total business segments [Member] | Aerospace [Member]
Business Segment Information
Net sales	437	447	865	892
Segment operating profit	81	83	160	163
Total business segments [Member] | Vehicle [Member]
Business Segment Information
Net sales	846	831	1,634	1,626
Segment operating profit	139	137	247	255
Corporate [Member]
Corporate
Amortization of intangible assets	(96)	(98)	(190)	(198)
Interest expense - net	(60)	(57)	(121)	(114)
Pension and other postretirement benefits expense	(11)	(13)	(22)	(27)
Other corporate expense - net	$ (65)	$ (58)	$ (134)	$ (114)

XML

CONDENSED CONSOLIDATING FINANCIAL STATEMENTS - Narrative (Details)	Nov. 14, 2013
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		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Consolidating Statements of Comprehensive Income, Captions [Line Items]
Net sales	$ 5,132	$ 5,080	$ 9,980	$ 9,893
Cost of products sold	3,450	3,419	6,760	6,710
Selling and administrative expense	902	897	1,787	1,789
Research and development expense	150	149	293	298
Interest expense (income) - net	60	57	121	114
Other expense (income) - net	0	5	(15)	(13)
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	570	553	1,034	995
Income tax expense (benefit)	54	61	86	100
Net income	516	492	948	895
Less net loss (income) for noncontrolling interests	(1)	(1)	(1)	0
Net income attributable to Eaton ordinary shareholders	515	491	947	895
Other comprehensive income	323	(255)	586	18
Total comprehensive income (loss) attributable to Eaton ordinary shareholders	838	236	1,533	913
Other subsidiaries [Member]
Consolidating Statements of Comprehensive Income, Captions [Line Items]
Net sales	3,164	3,057	6,155	5,930
Cost of products sold	2,248	2,224	4,429	4,294
Selling and administrative expense	329	346	662	675
Research and development expense	40	47	82	85
Interest expense (income) - net	(4)	(7)	(8)	(10)
Other expense (income) - net	(11)	(4)	32	(18)
Equity in loss (earnings) of subsidiaries, net of tax	(114)	(132)	(225)	(229)
Intercompany expense (income) - net	(419)	(380)	(823)	(697)
Income before income taxes	1,095	963	2,070	1,830
Income tax expense (benefit)	51	36	68	67
Net income	1,044	927	2,002	1,763
Less net loss (income) for noncontrolling interests	(1)	(2)	(2)	(2)
Net income attributable to Eaton ordinary shareholders	1,043	925	2,000	1,761
Other comprehensive income	408	(319)	731	(10)
Total comprehensive income (loss) attributable to Eaton ordinary shareholders	1,451	606	2,731	1,751
Guarantors
Consolidating Statements of Comprehensive Income, Captions [Line Items]
Net sales	1,672	1,648	3,267	3,223
Cost of products sold	1,225	1,203	2,413	2,403
Selling and administrative expense	197	198	391	394
Research and development expense	53	47	100	96
Interest expense (income) - net	6	6	11	9
Other expense (income) - net	(37)	6	(38)	4
Equity in loss (earnings) of subsidiaries, net of tax	(853)	(811)	(1,725)	(1,484)
Intercompany expense (income) - net	339	313	672	568
Income before income taxes	742	686	1,443	1,233
Income tax expense (benefit)	3	12	19	13
Net income	739	674	1,424	1,220
Less net loss (income) for noncontrolling interests	0	0	0	0
Net income attributable to Eaton ordinary shareholders	739	674	1,424	1,220
Other comprehensive income	322	(248)	592	30
Total comprehensive income (loss) attributable to Eaton ordinary shareholders	1,061	426	2,016	1,250
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	34	2	66	4
Research and development expense	0	0	0	0
Interest expense (income) - net	0	0	0	0
Other expense (income) - net	41	0	48	0
Equity in loss (earnings) of subsidiaries, net of tax	(704)	(594)	(1,285)	(1,098)
Intercompany expense (income) - net	114	101	224	199
Income before income taxes	515	491	947	895
Income tax expense (benefit)	0	0	0	0
Net income	515	491	947	895
Less net loss (income) for noncontrolling interests	0	0	0	0
Net income attributable to Eaton ordinary shareholders	515	491	947	895
Other comprehensive income	323	(255)	586	18
Total comprehensive income (loss) attributable to Eaton ordinary shareholders	838	236	1,533	913
Eaton Corporation [Member]
Consolidating Statements of Comprehensive Income, Captions [Line Items]
Net sales	1,696	1,644	3,268	3,182
Cost of products sold	1,373	1,263	2,626	2,459
Selling and administrative expense	342	351	668	716
Research and development expense	57	55	111	117
Interest expense (income) - net	58	57	118	110
Other expense (income) - net	7	3	7	1
Equity in loss (earnings) of subsidiaries, net of tax	(185)	(154)	(375)	(322)
Intercompany expense (income) - net	(34)	(34)	(73)	(70)
Income before income taxes	78	103	186	171
Income tax expense (benefit)	3	13	0	20
Net income	75	90	186	151
Less net loss (income) for noncontrolling interests	0	0	0	0
Net income attributable to Eaton ordinary shareholders	75	90	186	151
Other comprehensive income	(10)	0	50	44
Total comprehensive income (loss) attributable to Eaton ordinary shareholders	65	90	236	195
Consolidating adjustments [Member]
Consolidating Statements of Comprehensive Income, Captions [Line Items]
Net sales	(1,400)	(1,269)	(2,710)	(2,442)
Cost of products sold	(1,396)	(1,271)	(2,708)	(2,446)
Selling and administrative expense	0	0	0	0
Research and development expense	0	0	0	0
Interest expense (income) - net	0	1	0	5
Other expense (income) - net	0	0	0	0
Equity in loss (earnings) of subsidiaries, net of tax	1,856	1,691	3,610	3,133
Intercompany expense (income) - net	0	0	0	0
Income before income taxes	(1,860)	(1,690)	(3,612)	(3,134)
Income tax expense (benefit)	(3)	0	(1)	0
Net income	(1,857)	(1,690)	(3,611)	(3,134)
Less net loss (income) for noncontrolling interests	0	1	1	2
Net income attributable to Eaton ordinary shareholders	(1,857)	(1,689)	(3,610)	(3,132)
Other comprehensive income	(720)	567	(1,373)	(64)
Total comprehensive income (loss) attributable to Eaton ordinary shareholders	$ (2,577)	$ (1,122)	$ (4,983)	$ (3,196)

XML

CONDENSED CONSOLIDATING FINANCIAL STATEMENTS - Condensed Consolidating Balance Sheets (Details) - USD ($) $ in Millions	Jun. 30, 2017	Dec. 31, 2016	Jun. 30, 2016	Dec. 31, 2015
Current assets
Cash	$ 312	$ 543	$ 323	$ 268
Short-term investments	525	203
Accounts receivable - net	3,813	3,560
Intercompany accounts receivable	0	0
Inventory	2,393	2,254
Prepaid expenses and other current assets	444	381
Total current assets	7,487	6,941
Property, plant and equipment - net	3,530	3,443
Other noncurrent assets
Goodwill	13,478	13,201
Other intangible assets	5,410	5,514
Deferred income taxes	443	360
Investment in subsidiaries	0	0
Intercompany loans receivables	0	0
Other assets	1,007	960
Total assets	31,355	30,419
Liabilities and shareholders’ equity
Short-term debt	846	14
Current portion of long-term debt	1,495	1,552
Accounts payable	1,885	1,718
Intercompany accounts payable	0	0
Accrued compensation	338	379
Other current liabilities	1,745	1,822
Total current liabilities	6,309	5,485
Noncurrent liabilities
Long-term debt	6,264	6,711
Pension liabilities	1,578	1,659
Other postretirement benefits liabilities	364	368
Deferred income taxes	316	321
Intercompany loans payable	0	0
Other noncurrent liabilities	930	934
Total noncurrent liabilities	9,452	9,993
Shareholders’ equity
Eaton shareholders' equity	15,552	14,897
Noncontrolling interests	42	44
Total equity	15,594	14,941
Total liabilities and equity	31,355	30,419
Consolidation, Eliminations [Member]
Current assets
Cash	0	0	0	0
Short-term investments	0	0
Accounts receivable - net	0	0
Intercompany accounts receivable	(7,874)	(8,615)
Inventory	(81)	(79)
Prepaid expenses and other current assets	27	25
Total current assets	(7,928)	(8,669)
Property, plant and equipment - net	0	0
Other noncurrent assets
Goodwill	0	0
Other intangible assets	0	0
Deferred income taxes	(727)	(772)
Investment in subsidiaries	(135,594)	(132,053)
Intercompany loans receivables	(67,695)	(66,264)
Other assets	0	0
Total assets	(211,944)	(207,758)
Liabilities and shareholders’ equity
Short-term debt	0	0
Current portion of long-term debt	0	0
Accounts payable	0	0
Intercompany accounts payable	(7,874)	(8,615)
Accrued compensation	0	0
Other current liabilities	(2)	(2)
Total current liabilities	(7,876)	(8,617)
Noncurrent liabilities
Long-term debt	0	0
Pension liabilities	0	0
Other postretirement benefits liabilities	0	0
Deferred income taxes	(727)	(772)
Intercompany loans payable	(67,695)	(66,264)
Other noncurrent liabilities	0	0
Total noncurrent liabilities	(68,422)	(67,036)
Shareholders’ equity
Eaton shareholders' equity	(135,651)	(132,111)
Noncontrolling interests	5	6
Total equity	(135,646)	(132,105)
Total liabilities and equity	(211,944)	(207,758)
Non-Guarantor Subsidiaries [Member]
Current assets
Cash	288	446	314	235
Short-term investments	525	203
Accounts receivable - net	2,119	1,975
Intercompany accounts receivable	3,596	3,633
Inventory	1,487	1,349
Prepaid expenses and other current assets	261	237
Total current assets	8,276	7,843
Property, plant and equipment - net	1,991	1,880
Other noncurrent assets
Goodwill	5,830	5,553
Other intangible assets	1,897	1,903
Deferred income taxes	243	228
Investment in subsidiaries	12,886	12,577
Intercompany loans receivables	57,519	56,598
Other assets	362	335
Total assets	89,004	86,917
Liabilities and shareholders’ equity
Short-term debt	35	6
Current portion of long-term debt	3	6
Accounts payable	1,162	1,093
Intercompany accounts payable	1,213	1,349
Accrued compensation	218	223
Other current liabilities	910	941
Total current liabilities	3,541	3,618
Noncurrent liabilities
Long-term debt	8	8
Pension liabilities	910	888
Other postretirement benefits liabilities	72	71
Deferred income taxes	363	361
Intercompany loans payable	1,442	1,252
Other noncurrent liabilities	384	396
Total noncurrent liabilities	3,179	2,976
Shareholders’ equity
Eaton shareholders' equity	82,247	80,285
Noncontrolling interests	37	38
Total equity	82,284	80,323
Total liabilities and equity	89,004	86,917
Guarantors [Member]
Current assets
Cash	5	4	5	7
Short-term investments	0	0
Accounts receivable - net	1,169	1,049
Intercompany accounts receivable	3,524	4,023
Inventory	655	642
Prepaid expenses and other current assets	48	42
Total current assets	5,401	5,760
Property, plant and equipment - net	696	706
Other noncurrent assets
Goodwill	6,293	6,293
Other intangible assets	3,351	3,442
Deferred income taxes	0	0
Investment in subsidiaries	74,853	72,938
Intercompany loans receivables	2,481	2,061
Other assets	141	134
Total assets	93,216	91,334
Liabilities and shareholders’ equity
Short-term debt	0	8
Current portion of long-term debt	36	296
Accounts payable	266	252
Intercompany accounts payable	3,213	3,115
Accrued compensation	42	58
Other current liabilities	300	291
Total current liabilities	3,857	4,020
Noncurrent liabilities
Long-term debt	946	936
Pension liabilities	137	161
Other postretirement benefits liabilities	98	99
Deferred income taxes	680	732
Intercompany loans payable	45,618	44,788
Other noncurrent liabilities	225	211
Total noncurrent liabilities	47,704	46,927
Shareholders’ equity
Eaton shareholders' equity	41,655	40,387
Noncontrolling interests	0	0
Total equity	41,655	40,387
Total liabilities and equity	93,216	91,334
Eaton Corporation [Member]
Current assets
Cash	19	92	4	26
Short-term investments	0	0
Accounts receivable - net	525	536
Intercompany accounts receivable	752	954
Inventory	332	342
Prepaid expenses and other current assets	108	77
Total current assets	1,736	2,001
Property, plant and equipment - net	843	857
Other noncurrent assets
Goodwill	1,355	1,355
Other intangible assets	162	169
Deferred income taxes	927	904
Investment in subsidiaries	13,827	13,743
Intercompany loans receivables	7,695	7,605
Other assets	504	491
Total assets	27,049	27,125
Liabilities and shareholders’ equity
Short-term debt	811	0
Current portion of long-term debt	1,456	1,250
Accounts payable	457	372
Intercompany accounts payable	3,232	3,870
Accrued compensation	78	98
Other current liabilities	536	591
Total current liabilities	6,570	6,181
Noncurrent liabilities
Long-term debt	5,310	5,767
Pension liabilities	531	610
Other postretirement benefits liabilities	194	198
Deferred income taxes	0	0
Intercompany loans payable	2,374	2,603
Other noncurrent liabilities	321	327
Total noncurrent liabilities	8,730	9,505
Shareholders’ equity
Eaton shareholders' equity	11,749	11,439
Noncontrolling interests	0	0
Total equity	11,749	11,439
Total liabilities and equity	27,049	27,125
Eaton Corporation plc [Member]
Current assets
Cash	0	1	$ 0	$ 0
Short-term investments	0	0
Accounts receivable - net	0	0
Intercompany accounts receivable	2	5
Inventory	0	0
Prepaid expenses and other current assets	0	0
Total current assets	2	6
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	34,028	32,795
Intercompany loans receivables	0	0
Other assets	0	0
Total assets	34,030	32,801
Liabilities and shareholders’ equity
Short-term debt	0	0
Current portion of long-term debt	0	0
Accounts payable	0	1
Intercompany accounts payable	216	281
Accrued compensation	0	0
Other current liabilities	1	1
Total current liabilities	217	283
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	18,261	17,621
Other noncurrent liabilities	0	0
Total noncurrent liabilities	18,261	17,621
Shareholders’ equity
Eaton shareholders' equity	15,552	14,897
Noncontrolling interests	0	0
Total equity	15,552	14,897
Total liabilities and equity	$ 34,030	$ 32,801

XML

CONDENSED CONSOLIDATING FINANCIAL STATEMENTS - Condensed Consolidating Statements of Cash Flows (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Condensed Consolidating Statements of Cash Flows, Captions [Line Items]
Net cash provided by (used in) operating activities	$ 1,037	$ 1,133
Investing activities
Capital expenditures for property, plant and equipment	(246)	(246)
Cash received from (paid for) acquisitions of businesses, net of cash acquired	0	1
Payments for (Proceeds from) Businesses and Interest in Affiliates	0
Sales (purchases) of short-term investments - net	(309)	38
Investments in affiliates	0	0
Return of capital contributions from affiliates	0	0
Loans to affiliates	0	0
Repayments of loans from affiliates	0	0
Other - net	(31)	3
Net cash used in investing activities	(586)	(204)
Financing activities
Proceeds from borrowings	832	151
Payments on borrowings	(543)	(240)
Proceeds from borrowings from affiliates	0	0
Payments on borrowings from affiliates	0	0
Capital contributions from affiliates	0	0
Return of capital contributions to affiliates	0	0
Other intercompany financing activities	0	0
Cash dividends paid	(537)	(521)
Payments of Distributions to Affiliates	0
Exercise of employee stock options	49	37
Repurchase of shares	(465)	(295)
Payments Related to Tax Withholding for Share-based Compensation	(21)	(17)
Other - net	(4)	3
Net cash used in financing activities	(689)	(882)
Effect of currency on cash	7	8
Total increase (decrease) in cash	(231)	55
Cash at the beginning of the period	543	268
Cash at the end of the period	312	323
Guarantors [Member]
Condensed Consolidating Statements of Cash Flows, Captions [Line Items]
Net cash provided by (used in) operating activities	697	(298)
Investing activities
Capital expenditures for property, plant and equipment	(53)	(49)
Cash received from (paid for) acquisitions of businesses, net of cash acquired		1
Payments for (Proceeds from) Businesses and Interest in Affiliates	(92)
Sales (purchases) of short-term investments - net	0	2
Investments in affiliates	0	(120)
Return of capital contributions from affiliates	20	47
Loans to affiliates	0	(47)
Repayments of loans from affiliates	47	0
Other - net	7	25
Net cash used in investing activities	(71)	(141)
Financing activities
Proceeds from borrowings	0	0
Payments on borrowings	(289)	(240)
Proceeds from borrowings from affiliates	694	786
Payments on borrowings from affiliates	(353)	(1,658)
Capital contributions from affiliates	90	1,370
Return of capital contributions to affiliates	0	0
Other intercompany financing activities	38	183
Cash dividends paid	0	0
Payments of Distributions to Affiliates	(800)
Exercise of employee stock options	0	0
Repurchase of shares	0	0
Payments Related to Tax Withholding for Share-based Compensation	(4)	(4)
Other - net	(1)	0
Net cash used in financing activities	(625)	437
Effect of currency on cash	0	0
Total increase (decrease) in cash	1	(2)
Cash at the beginning of the period	4	7
Cash at the end of the period	5	5
Other subsidiaries [Member]
Condensed Consolidating Statements of Cash Flows, Captions [Line Items]
Net cash provided by (used in) operating activities	1,489	1,554
Investing activities
Capital expenditures for property, plant and equipment	(147)	(157)
Cash received from (paid for) acquisitions of businesses, net of cash acquired		0
Payments for (Proceeds from) Businesses and Interest in Affiliates	92
Sales (purchases) of short-term investments - net	(309)	36
Investments in affiliates	(90)	(1,370)
Return of capital contributions from affiliates	0	0
Loans to affiliates	(3,853)	(4,236)
Repayments of loans from affiliates	3,276	2,922
Other - net	(12)	(24)
Net cash used in investing activities	(1,043)	(2,829)
Financing activities
Proceeds from borrowings	21	6
Payments on borrowings	(4)	0
Proceeds from borrowings from affiliates	15	193
Payments on borrowings from affiliates	(75)	(33)
Capital contributions from affiliates	90	1,370
Return of capital contributions to affiliates	(20)	(47)
Other intercompany financing activities	75	(140)
Cash dividends paid	0	0
Payments of Distributions to Affiliates	(707)
Exercise of employee stock options	0	0
Repurchase of shares	0	0
Payments Related to Tax Withholding for Share-based Compensation	(3)	(3)
Other - net	(3)	0
Net cash used in financing activities	(611)	1,346
Effect of currency on cash	7	8
Total increase (decrease) in cash	(158)	79
Cash at the beginning of the period	446	235
Cash at the end of the period	288	314
Eaton Corporation plc [Member]
Condensed Consolidating Statements of Cash Flows, Captions [Line Items]
Net cash provided by (used in) operating activities	573	(156)
Investing activities
Capital expenditures for property, plant and equipment	0	0
Cash received from (paid for) acquisitions of businesses, net of cash acquired		0
Payments for (Proceeds from) Businesses and Interest in Affiliates	0
Sales (purchases) of short-term investments - net	0	0
Investments in affiliates	(90)	(1,250)
Return of capital contributions from affiliates	0	0
Loans to affiliates	0	0
Repayments of loans from affiliates	0	0
Other - net	0	0
Net cash used in investing activities	(90)	(1,250)
Financing activities
Proceeds from borrowings	0	0
Payments on borrowings	0	0
Proceeds from borrowings from affiliates	1,288	2,203
Payments on borrowings from affiliates	(819)	(18)
Capital contributions from affiliates	0	0
Return of capital contributions to affiliates	0	0
Other intercompany financing activities	0	0
Cash dividends paid	(537)	(521)
Payments of Distributions to Affiliates	0
Exercise of employee stock options	49	37
Repurchase of shares	(465)	(295)
Payments Related to Tax Withholding for Share-based Compensation	0	0
Other - net	0	0
Net cash used in financing activities	(484)	1,406
Effect of currency on cash	0	0
Total increase (decrease) in cash	(1)	0
Cash at the beginning of the period	1	0
Cash at the end of the period	0	0
Eaton Corporation [Member]
Condensed Consolidating Statements of Cash Flows, Captions [Line Items]
Net cash provided by (used in) operating activities	(215)	33
Investing activities
Capital expenditures for property, plant and equipment	(46)	(40)
Cash received from (paid for) acquisitions of businesses, net of cash acquired		0
Payments for (Proceeds from) Businesses and Interest in Affiliates	0
Sales (purchases) of short-term investments - net	0	0
Investments in affiliates	0	0
Return of capital contributions from affiliates	0	0
Loans to affiliates	(17)	(284)
Repayments of loans from affiliates	290	1,280
Other - net	(26)	2
Net cash used in investing activities	201	958
Financing activities
Proceeds from borrowings	811	145
Payments on borrowings	(250)	0
Proceeds from borrowings from affiliates	1,873	1,385
Payments on borrowings from affiliates	(2,366)	(2,493)
Capital contributions from affiliates	0	0
Return of capital contributions to affiliates	0	0
Other intercompany financing activities	(113)	(43)
Cash dividends paid	0	0
Payments of Distributions to Affiliates	0
Exercise of employee stock options	0	0
Repurchase of shares	0	0
Payments Related to Tax Withholding for Share-based Compensation	(14)	(10)
Other - net	0	3
Net cash used in financing activities	(59)	(1,013)
Effect of currency on cash	0	0
Total increase (decrease) in cash	(73)	(22)
Cash at the beginning of the period	92	26
Cash at the end of the period	19	4
Consolidation, Eliminations [Member]
Condensed Consolidating Statements of Cash Flows, Captions [Line Items]
Net cash provided by (used in) operating activities	(1,507)	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
Payments for (Proceeds from) Businesses and Interest in Affiliates	0
Sales (purchases) of short-term investments - net	0	0
Investments in affiliates	180	2,740
Return of capital contributions from affiliates	(20)	(47)
Loans to affiliates	3,870	4,567
Repayments of loans from affiliates	(3,613)	(4,202)
Other - net	0	0
Net cash used in investing activities	417	3,058
Financing activities
Proceeds from borrowings	0	0
Payments on borrowings	0	0
Proceeds from borrowings from affiliates	(3,870)	(4,567)
Payments on borrowings from affiliates	3,613	4,202
Capital contributions from affiliates	(180)	(2,740)
Return of capital contributions to affiliates	20	47
Other intercompany financing activities	0	0
Cash dividends paid	0	0
Payments of Distributions to Affiliates	1,507
Exercise of employee stock options	0	0
Repurchase of shares	0	0
Payments Related to Tax Withholding for Share-based Compensation	0	0
Other - net	0	0
Net cash used in financing activities	1,090	(3,058)
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