


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