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, 2018

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 433.3 million Ordinary Shares outstanding as of June 30, 2018.

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	29
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	34
ITEM 4. CONTROLS AND PROCEDURES	35
PART II — OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS	36
ITEM 1A. RISK FACTORS	36
ITEM 2. UNRESTRICTED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS	36
ITEM 5. OTHER INFORMATION	36
ITEM 6. EXHIBITS	37
SIGNATURES	38

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)	2018			2017			2018		2017
Net sales	$	5,487		$	5,132		$	10,738	$	9,980
Cost of products sold	3,671			3,448			7,244		6,755
Selling and administrative expense	901			891			1,790		1,767
Research and development expense	145			150			301		293
Interest expense - net	68			60			138		121
Other expense - net	8			11			6		5
Income before income taxes	694			572			1,259		1,039
Income tax expense	83			55			161		88
Net income	611			517			1,098		951
Less net income for noncontrolling interests	(1		)	(1		)	—		(1		)
Net income attributable to Eaton ordinary shareholders	$	610		$	516		$	1,098	$	950
Net income per share attributable to Eaton ordinary shareholders
Diluted	$	1.39		$	1.15		$	2.50	$	2.11
Basic	1.40			1.16			2.51		2.12
Weighted-average number of ordinary shares outstanding
Diluted	437.3			448.6			439.5		449.8
Basic	435.2			446.3			437.0		447.5
Cash dividends declared per ordinary share	$	0.66		$	0.60		$	1.32	$	1.20

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)	2018			2017			2018			2017
Net income	$	611		$	517		$	1,098		$	951
Less net income for noncontrolling interests	(1		)	(1		)	—			(1		)
Net income attributable to Eaton ordinary shareholders	610			516			1,098			950
Other comprehensive (loss) income, net of tax
Currency translation and related hedging instruments	(671		)	320			(414		)	548
Pensions and other postretirement benefits	56			4			82			37
Cash flow hedges	(9		)	(1		)	4			1
Other comprehensive (loss) income attributable to Eaton    ordinary shareholders	(624		)	323			(328		)	586
Total comprehensive (loss) income attributable to Eaton   ordinary shareholders	$	(14	)	$	839		$	770		$	1,536

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, 2018			December 31, 2017
Assets
Current assets
Cash	$	256		$	561
Short-term investments	236			534
Accounts receivable - net	4,092			3,943
Inventory	2,753			2,620
Prepaid expenses and other current assets	576			679
Total current assets	7,913			8,337
Property, plant and equipment
Land and buildings	2,458			2,491
Machinery and equipment	6,035			6,014
Gross property, plant and equipment	8,493			8,505
Accumulated depreciation	(5,031		)	(5,003		)
Net property, plant and equipment	3,462			3,502
Other noncurrent assets
Goodwill	13,427			13,568
Other intangible assets	5,050			5,265
Deferred income taxes	296			253
Other assets	1,717			1,698
Total assets	$	31,865		$	32,623
Liabilities and shareholders’ equity
Current liabilities
Short-term debt	$	504		$	6
Current portion of long-term debt	428			578
Accounts payable	2,192			2,166
Accrued compensation	353			453
Other current liabilities	1,910			1,872
Total current liabilities	5,387			5,075
Noncurrent liabilities
Long-term debt	6,753			7,167
Pension liabilities	1,174			1,226
Other postretirement benefits liabilities	354			362
Deferred income taxes	486			538
Other noncurrent liabilities	986			965
Total noncurrent liabilities	9,753			10,258
Shareholders’ equity
Eaton shareholders’ equity	16,690			17,253
Noncontrolling interests	35			37
Total equity	16,725			17,290
Total liabilities and equity	$	31,865		$	32,623

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)	2018			2017
Operating activities
Net income	$	1,098		$	951
Adjustments to reconcile to net cash provided by operating activities
Depreciation and amortization	457			453
Deferred income taxes	(109		)	(105		)
Pension and other postretirement benefits expense	82			104
Contributions to pension plans	(72		)	(160		)
Contributions to other postretirement benefits plans	(12		)	(11		)
Changes in working capital	(482		)	(381		)
Other - net	(124		)	186
Net cash provided by operating activities	838			1,037
Investing activities
Capital expenditures for property, plant and equipment	(280		)	(246		)
Sales (purchases) of short-term investments - net	284			(309		)
Other - net	(41		)	(31		)
Net cash used in investing activities	(37		)	(586		)
Financing activities
Proceeds from borrowings	500			832
Payments on borrowings	(486		)	(543		)
Cash dividends paid	(578		)	(537		)
Exercise of employee stock options	21			49
Repurchase of shares	(600		)	(465		)
Employee taxes paid from shares withheld	(23		)	(21		)
Other - net	(2		)	(4		)
Net cash used in financing activities	(1,168		)	(689		)
Effect of currency on cash	62			7
Total decrease in cash	(305		)	(231		)
Cash at the beginning of the period	561			543
Cash at the end of the period	$	256		$	312

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 2017 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 2018, Eaton re-segmented certain reportable operating segments due to a reorganization of the Company's businesses. The new reportable business segment is eMobility (which includes certain legacy Electrical Products and Vehicle product lines). See Note 13 for additional information related to these segments.

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

Revenue Recognition

Sales are recognized when control of promised goods or services are transferred to customers in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. Control is transferred when the customer has the ability to direct the use of and obtain benefits from the goods or services. The majority of the Company’s sales agreements contain performance obligations satisfied at a point in time when control is transferred to the customer. Sales recognized over time are generally accounted for using an input measure to determine progress completed at the end of the period. Sales for service contracts generally are recognized as the services are provided. For agreements with multiple performance obligations, judgment is required to determine whether performance obligations specified in these agreements are distinct and should be accounted for as separate revenue transactions for recognition purposes. In these types of agreements, we generally allocate sales price to each distinct obligation based on the price of each item sold in separate transactions.

Payment terms vary by the type and location of the customer and the products or services offered. Generally, the time between when revenue is recognized and payment is due is not significant. Eaton does not evaluate whether the selling price includes a financing interest component for contracts that are less than a year. Sales, value added, and other taxes collected concurrent with revenue are excluded from sales. Shipping and handling costs are treated as fulfillment costs and are included in Cost of products sold.

Eaton records reductions to sales for returns, and customer and distributor incentives, primarily comprised of rebates, at the time of the initial sale. Rebates are estimated based on sales terms, historical experience, trend analysis, and projected market conditions in the various markets served. The rebate programs offered vary across businesses due to the numerous markets Eaton serves, but the most common incentives relate to amounts paid or credited to customers for achieving defined volume levels. Returns are estimated at the time of the sale primarily based on historical experience and recorded gross on the Consolidated Balance Sheet. See Note 3 for additional information.

Adoption of New Accounting Standards

Eaton adopted Accounting Standard Update 2014-09, Revenue from Contracts with Customers, at the start of the first quarter of 2018 using the modified retrospective approach and recorded a cumulative effect adjustment to retained earnings based on the current terms and conditions for open contracts as of January 1, 2018. The adoption of the standard did not have a material impact on the Company’s Consolidated financial statements. The comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods.

6

Consolidated Balance Sheet		Balance at December 31, 2017		Adjustments due to ASU 2014-09			Balance at January 1, 2018
Assets
	Accounts receivable - net	$	3,943	$	(99	)	$	3,844
	Prepaid expenses and other current assets	679		129			808
	Deferred income taxes	253		1			254
Liabilities and shareholders' equity
	Other current liabilities	$	1,872	$	33		$	1,905
	Eaton shareholders' equity	17,253		(2		)	17,251

Eaton adopted Accounting Standards Update 2016-16, Intra-Entity Transfers of Assets Other Than Inventory (ASU 2016-16), at the start of the first quarter of 2018. This accounting standard requires companies to recognize the income tax effects of intercompany sales and transfers of assets other than inventory in the period in which the transfer occurs. The previous accounting standard required companies to defer the income tax effects of intercompany transfers of assets by recording a prepaid tax, until such assets were sold to an outside party or otherwise recognized. ASU 2016-16 requires companies to write off any income tax amounts that had been deferred as prepaid taxes from past intercompany transactions, and record deferred tax balances for amounts that have not been recognized, through a cumulative-effect adjustment to retained earnings. Upon adoption, the Company recorded a cumulative-effect adjustment of $199 to reduce retained earnings.

Eaton adopted Accounting Standards Update 2017-07, Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost (ASU 2017-07), at the start of the first quarter of 2018. The new standard requires companies to present service costs consistent with other employee compensation costs on the income statement and separate from all other elements of pension costs. The retrospective adoption of this standard resulted in an increase in selling and administrative expense with a corresponding decrease in Other expense - net of $1 for the six months ended June 30, 2018, and a reduction in selling and administrative expense with a corresponding increase in Other expense - net of $20 for the six months ended June 30, 2017.

Recently Issued Accounting Pronouncement

In February 2016, the FASB issued Accounting Standards Update 2016-02, Leases (Topic 842), (ASU 2016-02). This accounting standard requires that a lessee recognize a lease asset and a lease liability on its balance sheet for all leases, including operating leases, with a term greater than 12 months. ASU 2016-02 will require additional disclosures in the notes to the consolidated financial statements and is effective for annual and interim reporting periods beginning after December 15, 2018. A project team has been formed to evaluate and implement the new standard. The project team is working to gather the data required to account for leases under the new standard, and validating the functionality of third-party lease accounting software. In addition, the Company is in the process of identifying and implementing the appropriate changes to business processes and controls to support recognition and disclosure under the new standard. Eaton plans to adopt the standard as of the first quarter of 2019. 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.

7

Note 2. 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
	2018		2017		2018		2017
Electrical Products	$	—	$	1	$	—	$	2
Total acquisition integration charges before income taxes	—		1		—		2
Income taxes	—		1		—		1
Total after income taxes	$	—	$	—	$	—	$	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. In Business Segment Information, the charges reduced Operating profit of the related business segment. See Note 13 for additional information about business segments.

Note 3. REVENUE RECOGNITION

Sales are recognized when obligations under the terms of the contract are satisfied and control of promised goods or services have transferred to our customers. Sales are measured at the amount of consideration the Company expects to be paid in exchange for these products or services.

The majority of the Company’s sales agreements contain performance obligations satisfied at a point in time when title and risk and rewards of ownership have transferred to the customer. Sales recognized over time are less than 5% of Eaton’s Consolidated Net Sales. Sales recognized over time are generally accounted for using an input measure to determine progress completed at the end of the period. Sales for service contracts generally are recognized as the services are provided. For agreements with multiple performance obligations, judgment is required to determine whether performance obligations specified in these agreements are distinct and should be accounted for as separate revenue transactions for recognition purposes. In these types of agreements, we generally allocate sales price to each distinct obligation based on the price of each item sold in separate transactions.

Due to the nature of the work required to be performed for obligations recognized over time, Eaton estimates total costs by contract. The estimate of total costs are subject to judgment. Estimated amounts are included in the recognized sales price to the extent it is not probable that a significant reversal of cumulative sales will occur. Additionally, contracts can be modified to account for changes in contract specifications, requirements or sale price. The effect of a contract modification on the sales price or adjustments to the measure of completion under the input method are recognized as adjustments to revenue on a cumulative catch-up basis.

Payment terms vary by the type and location of the customer and the products or services offered. Generally, the time between when revenue is recognized and when payment is due is not significant. Eaton does not evaluate whether the selling price includes a financing interest component for contracts that are less than a year. Sales, value added, and other taxes collected concurrent with revenue are excluded from sales. Shipping and handling costs are treated as fulfillment costs and are included in Cost of products sold.

Eaton records reductions to sales for returns, and customer and distributor incentives, primarily comprised of rebates, at the time of the initial sale. Rebates are estimated based on sales terms, historical experience, trend analysis, and projected market conditions in the various markets served. The rebate programs offered vary across businesses due to the numerous markets Eaton serves, but the most common incentives relate to amounts paid or credited to customers for achieving defined volume levels. Returns are estimated at the time of the sale primarily based on historical experience and are recorded gross on the Condensed Consolidated Balance Sheet.

Sales commissions are expensed when the amortization period is less than a year and are generally not capitalized as they are typically earned at the completion of the contract when the customer is invoiced or when the customer pays Eaton.

Sales of products and services varies by segment and are discussed in Note 15 of Eaton’s 2017 Form 10-K and in Note 13.

8

In the Electrical Products segment, sales contracts are primarily for electrical components, industrial components, residential products, single phase power quality, emergency lighting, fire detection, wiring devices, structural support systems, circuit protection, and lighting products. These sales contracts are primarily based on a customer’s purchase order followed by our order acknowledgement, and may also include a master supply or distributor agreement. In this segment, performance obligations are generally satisfied at a point in time either when we ship the product from our facility, or when it arrives at the customer’s facility.

In the Electrical Systems and Services segment, sales contracts are primarily for power distribution and assemblies, three phase power quality, hazardous duty electrical equipment, intrinsically safe explosion-proof instrumentation, utility power distribution, power reliability equipment, and services. The majority of the sales contracts in this segment contain performance obligations satisfied at a point in time either when we ship the product from our facility, or when it arrives at the customer’s facility; however, certain power distribution and power quality services are recognized over time.

Many of the products and services in power distribution and power quality services meet the definition of continuous transfer of control to customers and are recognized over time. These products are engineered to a customer’s design specifications, have no alternative use to Eaton, and are controlled by the customer as evidenced by the customer’s contractual ownership of the work in process or our right to payment for work performed to date plus a reasonable margin. As control is transferring over time, sales are recognized based on the extent of progress towards completion of the obligation. Eaton generally uses an input method to determine the progress completed and sales are recorded proportionally as costs are incurred. Incurred cost represent work performed, which corresponds with, and thereby best depicts, the transfer of control to the customer.

In the Hydraulics segment, sales contracts are primarily for hydraulic components and systems for industrial and mobile equipment. These sales contracts are primarily based on a customer’s purchase order. In this segment, performance obligations are generally satisfied at a point in time when we ship the product from our facility.

In the Aerospace segment, sales contracts are primarily for aerospace fuel, hydraulics, and pneumatic systems for commercial and military use. These sales contracts are primarily based on a customer’s purchase order, and frequently covered by terms and conditions included in a long-term agreement. In this segment, performance obligations are generally satisfied at a point in time either when we ship the product from our facility, or when it arrives at the customer’s facility. Our military contracts are primarily fixed-price contracts that are not subject to performance-based payments or progress payments from the customer.

In the Vehicle segment, sales contracts are primarily for drivetrains, powertrain systems and critical components that reduce emissions and improve fuel economy, stability, performance, and safety of cars, light trucks and commercial vehicles. These sales contracts are primarily based on a customer’s purchase order or a blanket purchase order subject to firm releases, frequently covered by terms and conditions included in a master supply agreement. In this segment, performance obligations are generally satisfied at a point in time either when we ship the product from our facility, or when it arrives at the customer’s facility.

In the eMobility segment, sales contracts are primarily for electronic and mechanical components and systems that improves the power management and performance of both on-road and off-road vehicles. These sales contracts are primarily based on a customer’s purchase order. In this segment, performance obligations are generally satisfied at a point in time either when we ship the product from our facility, or when it arrives at the customer’s facility.

In limited circumstances, primarily in the Electrical and Vehicle segments, Eaton sells separately-priced warranties that extend the warranty coverage beyond the standard coverage offered on specific products. Sales for these separately-priced warranties are recorded based on their stand-alone selling price and are recognized as revenue over the length of the warranty period.

9

The Company’s six operating segments and the following tables disaggregate sales by lines of businesses, geographic destination, market channel or end market.

	Three months ended June 30, 2018
Net sales	United States		Rest of World		Total
Electrical Products	$	1,033	$	773	$	1,806
Electrical Systems and Services	983		530		1,513
Hydraulics	309		414		723
	Original Equipment Manufacturers		Aftermarket, Distribution and End User
Aerospace	$	266	$	197	463
	Commercial		Passenger and Light Duty
Vehicle	$	452	$	447	899
eMobility					83
Total					$	5,487

	Six months ended June 30, 2018
Net sales	United States		Rest of World		Total
Electrical Products	$	1,993	$	1,545	$	3,538
Electrical Systems and Services	1,877		1,017		2,894
Hydraulics	606		827		1,433
	Original Equipment Manufacturers		Aftermarket, Distribution and End User
Aerospace	$	530	$	391	921
	Commercial		Passenger and Light Duty
Vehicle	$	882	$	910	1,792
eMobility					160
Total					$	10,738

The timing of revenue recognition, billings and cash collections results in billed accounts receivable, unbilled receivables (revenue recognized exceeds amount billed to the customer), and deferred revenue (advance payments and billings in excess of revenue recognized). Accounts receivables from customers were $3,606 and $3,399 at June 30, 2018 and December 31, 2017, respectively. Amounts are billed as work progresses in accordance with agreed-upon contractual terms, either at periodic intervals or upon achievement of contractual milestones. These assets and liabilities are reported on the Condensed Consolidated Balance Sheets on a contract-by-contract basis at the end of each reporting period. Unbilled receivables were $150 and $117 at June 30, 2018 and January 1, 2018, respectively, and are recorded in Prepaid expenses and other current assets. The increase in the unbilled receivables was primarily due to revenue recognized and not yet billed, partially offset by billings to customers during the quarter.

10

Changes in the deferred revenue liabilities are as follows:

	Deferred Revenue
Balance at January 1, 2018	$	227
Customer deposits and billings	463
Revenue recognized in the period	(443		)
Translation	(3		)
Balance at June 30, 2018	$	244

A significant portion of open orders placed with Eaton are by original equipment manufacturers or distributors. These open orders are not considered firm as they have been historically subject to releases by customers. In measuring backlog of unsatisfied or partially satisfied obligations, only the amount of orders to which customers are firmly committed are included. Using this criterion, total backlog at June 30, 2018 was approximately $5.4 billion. Eaton expects to recognize approximately 89% of this backlog in the next twelve months and the rest thereafter.

Impact of new accounting standard

In accordance with the new revenue accounting requirements, the impact of the adoption on the financial statement line items within the accompanying financial statements was as follows:

	Three months ended June 30, 2018
Consolidated Statements of Income	As Reported		Adjustment			Balances without Adoption of ASC 606
Net sales	$	5,487	$	(11	)	$	5,476
Cost of products sold	3,671		(6		)	3,665
Income before income taxes	694		(5		)	689
Income tax expense	83		(1		)	82
Net income	611		(4		)	607
Net income attributable to Eaton ordinary shareholders	$	610	$	(4	)	$	606

	Six months ended June 30, 2018
Consolidated Statements of Income	As Reported		Adjustment			Balances without Adoption of ASC 606
Net sales	$	10,738	$	(18	)	$	10,720
Cost of products sold	7,244		(10		)	7,234
Income before income taxes	1,259		(8		)	1,251
Income tax expense	161		(2		)	159
Net income	1,098		(6		)	1,092
Net income attributable to Eaton ordinary shareholders	$	1,098	$	(6	)	$	1,092

11

	June 30, 2018
Condensed Consolidated Balance Sheets	As Reported		Adjustment			Balances without Adoption of ASC 606
Assets
Accounts receivable - net	$	4,092	$	121		$	4,213
Inventory	2,753		9			2,762
Prepaid expenses and other current assets	576		(164		)	412
Deferred income taxes	296		(1		)	295
Liabilities and shareholders’ equity
Other current liabilities	$	1,910	$	(31	)	$	1,879
Eaton shareholders' equity	$	16,725	$	(4	)	$	16,721

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. The multi-year initiative concluded at the end of 2017.

A summary of liabilities related to workforce reductions, plant closings and other associated costs announced as part of this program follows:

	Workforce reductions			Plant closings and other			Total
Balance at December 31, 2016	$	113		$	1		$	114
Liability recognized	57			59			116
Payments	(102		)	(39		)	(141		)
Other adjustments	(1		)	(16		)	(17		)
Balance at December 31, 2017	67			5			72
Payments	(25		)	(4		)	(29		)
Other adjustments	(10		)	—			(10		)
Balance at June 30, 2018	$	32		$	1		$	33

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Note 5. GOODWILL

Change in the carrying amount of goodwill by segment follows:

	December 31, 2017		Translation			June 30, 2018
Electrical Products	$	6,678	$	(71	)	$	6,607
Electrical Systems and Services	4,311		(36		)	4,275
Hydraulics	1,257		(29		)	1,228
Aerospace	947		(3		)	944
Vehicle	294		(2		)	292
eMobility	81		—			81
Total	$	13,568	$	(141	)	$	13,427

Eaton re-segmented certain reportable operating segments due to a reorganization of the Company's businesses. The new reportable business segment is eMobility (which includes certain legacy Electrical Products and Vehicle product lines). The Company used the relative fair value method to reallocate goodwill to the associated reporting units.

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
	2018			2017			2018			2017			2018			2017
Service cost	$	25		$	24		$	16		$	18		$	—		$	—
Interest cost	31			31			13			14			4			4
Expected return on plan assets	(64		)	(61		)	(26		)	(23		)	(1		)	(1		)
Amortization	23			21			10			12			(3		)	(3		)
	15			15			13			21			—			—
Settlements	11			17			—			—			—			—
Total expense	$	26		$	32		$	13		$	21		$	—		$	—
	United States pension benefit expense						Non-United States pension benefit expense						Other postretirement benefits expense
	Six months ended June 30
	2018			2017			2018			2017			2018			2017
Service cost	$	50		$	48		$	32		$	35		$	1		$	1
Interest cost	61			62			27			27			7			7
Expected return on plan assets	(127		)	(122		)	(53		)	(46		)	(2		)	(2		)
Amortization	47			41			20			25			(6		)	(6		)
	31			29			26			41			—			—
Settlements	25			34			—			—			—			—
Total expense	$	56		$	63		$	26		$	41		$	—		$	—

The components of retirement benefits expense other than service costs are included in Other expense - net.

13

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 2011, Pepsi-Cola Metropolitan Bottling Company, Inc. (“Pepsi”) filed an action against (a) Cooper Industries, LLC, Cooper Industries, Ltd., Cooper Holdings, Ltd., Cooper US, Inc., and Cooper Industries plc (collectively, “Cooper”), (b) M&F Worldwide Corp., Mafco Worldwide Corp., Mafco Consolidated Group LLC, and PCT International Holdings, Inc. (collectively, “Mafco”), and (c) the Pneumo Abex Asbestos Claims Settlement Trust (the “Trust”) in Texas state court. Pepsi alleged that it was harmed by a 2011 settlement agreement (“2011 Settlement”) among Cooper, Mafco, and Pneumo Abex, LLC (“Pneumo,” which prior to the 2011 Settlement was a Mafco subsidiary), which settlement resolved litigation that Pneumo had previously brought against Cooper involving, among other things, a guaranty related to Pneumo’s friction products business. In November 2015, after a Texas court ruled that Pepsi's claims should be heard in arbitration, Pepsi filed a demand for arbitration against Cooper, Mafco, the Trust, and Pneumo. Pepsi subsequently dropped claims against all parties except Cooper. An arbitration under the auspices of the American Arbitration Association commenced in October 2017. Pepsi’s experts have opined, among other things, that the value contributed to the Trust for a release of the guaranty was below reasonably equivalent value, and that an inability of Pneumo to satisfy future liabilities may result in plaintiffs suing Pepsi under various theories. Cooper submitted various expert reports and, among other things, Cooper’s experts have opined that Pepsi has no basis to seek any damages and that Cooper paid reasonably equivalent value for the release of its indemnity obligations under the guaranty. The arbitration proceedings closed in December 2017. On July 11, 2018, the arbitration panel made certain findings and concluded that the value contributed to the Trust did not constitute reasonably equivalent value, but ordered the parties to recalculate the amount that should have been contributed to the Trust as of the date of the 2011 transaction. Based on the findings made by the panel and the recalculation ordered by the panel, Cooper believes that no additional amount should be contributed. Pepsi argued that an additional $347 should be contributed. Cooper and its expert disagree with Pepsi’s argument and believe that Pepsi’s recalculation is flawed and fails to comply with the instructions of the panel. Based on its calculation, the Company continues to believe that the ultimate resolution of this matter will not have a material impact on the Company’s consolidated financial statements.

Note 8. INCOME TAXES

The effective income tax rate for the second quarter and the first six month of 2018 was expense of 12.0% and 12.8% compared to expense of 9.7% and 8.5% for the second quarter and first six months of 2017. The increase in the effective tax rate in the second quarter and first six months of 2018 was due to greater levels of income in higher tax jurisdictions and the impact of the U.S. Tax Cuts and Jobs Act (“TCJA"). During the second quarter of 2018, the Company increased tax contingencies for the current and prior years which was offset by a corresponding decrease of a related valuation allowance. The net impact of these adjustments did not have a material impact on tax expense or the balance sheet.

The TCJA was enacted on December 22, 2017 and the Company recorded provisional tax amounts in the fourth quarter of 2017 for the remeasurement of deferred tax balances, including valuation allowances related to the realization of deferred tax assets, and the one-time transition tax. The Company continues to analyze aspects of the TCJA, including potential impact to the provisional amounts recorded for the remeasurement of deferred tax balances and related valuation allowances, and the one-time transition tax. The Company did not record any adjustments to the 2017 provisional tax amounts in the second quarter of 2018.

14

Note 9. EQUITY

During the three and six months ended June 30, 2018, 4.0 million and 7.7 million ordinary shares, respectively, were repurchased under the 2016 Program in the open market at a total cost of $300 and $600, respectively. 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.

The changes in Shareholders’ equity follow:

	Eaton shareholders’ equity			Noncontrolling interests			Total equity
Balance at December 31, 2017	$	17,253		$	37		$	17,290
Cumulative-effect adjustment upon adoption of ASU 2014-09	(2		)	—			(2		)
Cumulative-effect adjustment upon adoption of ASU 2016-16	(199		)	—			(199		)
Net income	1,098			—			1,098
Other comprehensive loss	(328		)	—			(328		)
Cash dividends paid	(578		)	(1		)	(579		)
Issuance of shares under equity-based compensation plans - net	46			—			46
Repurchase of shares	(600		)	—			(600		)
Changes in noncontrolling interest - net	—			(1		)	(1		)
Balance at June 30, 2018	$	16,690		$	35		$	16,725

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, 2017	$	(2,255	)	$	(1,139	)	$	(10	)	$	(3,404	)
Other comprehensive (loss) income    before reclassifications	(414		)	13			(2		)	(403		)
Amounts reclassified from Accumulated other    comprehensive loss	—			69			6			75
Net current-period Other comprehensive    (loss) income	(414		)	82			4			(328		)
Balance at June 30, 2018	$	(2,669	)	$	(1,057	)	$	(6	)	$	(3,732	)

The reclassifications out of Accumulated other comprehensive loss follow:

	Six months ended June 30, 2018				Consolidated statements of income classification
Amortization of defined benefit pensions and other postretirement benefits items
Actuarial loss and prior service cost	$	(86	)	1
Tax benefit	17
Total, net of tax	(69		)
Gains and (losses) on cash flow hedges
Currency exchange contracts	(8		)		Cost of products sold
Tax benefit	2
Total, net of tax	(6		)
Total reclassifications for the period	$	(75	)

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.

15

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)	2018		2017		2018		2017
Net income attributable to Eaton ordinary shareholders	$	610	$	516	$	1,098	$	950
Weighted-average number of ordinary shares outstanding - diluted	437.3		448.6		439.5		449.8
Less dilutive effect of equity-based compensation	2.1		2.3		2.5		2.3
Weighted-average number of ordinary shares outstanding - basic	435.2		446.3		437.0		447.5
Net income per share attributable to Eaton ordinary shareholders
Diluted	$	1.39	$	1.15	$	2.50	$	2.11
Basic	1.40		1.16		2.51		2.12

For the second quarter and first six months of 2018, 0.6 million and 0.3 million stock options, respectively, were excluded from the calculation of diluted net income per share attributable to Eaton ordinary shareholders because the exercise price of the options exceeded the average market price of the ordinary shares during the period and their effect, accordingly, would have been antidilutive. 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.

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, 2018
Cash	$	256		$	256	$	—		$	—
Short-term investments	236			236		—			—
Net derivative contracts	(140		)	—		(140		)	—
December 31, 2017
Cash	$	561		$	561	$	—		$	—
Short-term investments	534			534		—			—
Net derivative contracts	36			—		36			—

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 $7,181 and fair value of $7,218 at June 30, 2018 compared to $7,745 and $8,048, respectively, at December 31, 2017. 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.

16

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. The cash flows resulting from these financial instruments are classified in operating activities on the Condensed Consolidated Statements of Cash Flows.

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 $90 at June 30, 2018 and $88 at December 31, 2017, and designated on a pre-tax basis was $634 at June 30, 2018 and $652 at December 31, 2017.

17

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, 2018
Derivatives designated as hedges
Fixed-to-floating interest rate  swaps	$	2,550	$	—	$	18	$	1	$	51	Fair value	9 months to 16 years
Currency exchange contracts	950		13		5		18		4		Cash flow	1 to 36 months
Total			$	13	$	23	$	19	$	55
Derivatives not designated as  hedges
Currency exchange contracts	$	6,033	$	33			$	135				1 to 12 months
Commodity contracts	11		—				—					1 to 12 months
Total			$	33			$	135
December 31, 2017
Derivatives designated as hedges
Fixed-to-floating interest rate  swaps	$	2,965	$	1	$	41	$	—	$	17	Fair value	6 months to 17 years
Currency exchange contracts	924		7		7		22		2		Cash flow	1 to 36 months
Total			$	8	$	48	$	22	$	19
Derivatives not designated as  hedges
Currency exchange contracts	$	3,719	$	39			$	19				1 to 12 months
Commodity contracts	13		1				—					1 to 12 months
Total			$	40			$	19

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.

18

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
	2018			2017				2018			2017
Derivatives designated as    cash flow hedges
Forward starting floating-to-fixed  interest rate swaps	$	—		$	(5	)	Interest expense - net	$	—		$	—
Currency exchange contracts	(15		)	2			Cost of products sold	(4		)	(1		)
Total	$	(15	)	$	(3	)		$	(4	)	$	(1	)
	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
	2018			2017				2018			2017
Derivatives designated as cash flow hedges
Forward starting floating-to-fixed interest rate swaps	$	—		$	(5	)	Interest expense - net	$	—		$	—
Currency exchange contracts	(2		)	1			Cost of products sold	(8		)	(5		)
Total	$	(2	)	$	(4	)		$	(8	)	$	(5	)

Amounts recognized in net income follow:

	Three months ended June 30						Six months ended June 30
	2018			2017			2018			2017
Derivatives designated as fair value hedges
Fixed-to-floating interest rate swaps	$	(16	)	$	8		$	(59	)	$	(3	)
Related long-term debt converted to floating interest    rates by interest rate swaps	16			(8		)	59			3
	$	—		$	—		$	—		$	—

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

Note 12. INVENTORY

Inventory is carried at lower of cost or net realizable value. The components of inventory follow:

	June 30, 2018		December 31, 2017
Raw materials	$	1,065	$	953
Work-in-process	524		471
Finished goods	1,164		1,196
Total inventory	$	2,753	$	2,620

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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.

During the first quarter of 2018, Eaton re-segmented certain reportable operating segments due to a reorganization of the Company's businesses. The new reportable business segment is eMobility (which includes certain legacy Electrical Products and Vehicle product lines). 

The eMobility segment designs, manufactures, markets, and supplies electrical and electronic components and systems that improve the power management and performance of both on-road and off-road vehicles. Products include high voltage inverters, converters, fuses, onboard chargers, circuit protection units, vehicle controls, power distribution, fuel tank isolation valves, and commercial vehicle hybrid systems. The principal markets for the eMobility segment are original equipment manufacturers and aftermarket customers of passenger cars, commercial vehicles, and construction, agriculture, and mining equipment.

Eaton’s operating segments are Electrical Products, Electrical Systems and Services, Hydraulics, Aerospace, Vehicle, and eMobility. 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 2017 Form 10-K.

	Three months ended June 30						Six months ended June 30
	2018			2017			2018			2017
Net sales
Electrical Products	$	1,806		$	1,731		$	3,538		$	3,382
Electrical Systems and Services	1,513			1,414			2,894			2,747
Hydraulics	723			633			1,433			1,220
Aerospace	463			437			921			865
Vehicle	899			845			1,792			1,631
eMobility	83			72			160			135
Total net sales	$	5,487		$	5,132		$	10,738		$	9,980
Segment operating profit
Electrical Products	$	334		$	299		$	641		$	585
Electrical Systems and Services	227			194			394			349
Hydraulics	101			74			191			134
Aerospace	90			81			179			160
Vehicle	166			141			298			249
eMobility	14			13			25			24
Total segment operating profit	932			802			1,728			1,501
Corporate
Amortization of intangible assets	(96		)	(96		)	(194		)	(190		)
Interest expense - net	(68		)	(60		)	(138		)	(121		)
Pension and other postretirement benefits expense	1			(11		)	(1		)	(22		)
Other corporate expense - net	(75		)	(63		)	(136		)	(129		)
Income before income taxes	694			572			1,259			1,039
Income tax expense	83			55			161			88
Net income	611			517			1,098			951
Less net income for noncontrolling interests	(1		)	(1		)	—			(1		)
Net income attributable to Eaton ordinary shareholders	$	610		$	516		$	1,098		$	950

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Note 14. CONDENSED CONSOLIDATING FINANCIAL STATEMENTS

The Registered Senior Notes issued by Eaton Corporation are registered under the Securities Act of 1933. Eaton and certain 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 Registered 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. See Note 6 of Eaton's 2017 Form 10-K for additional information related to the Registered Senior Notes.

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 2018 and 2017, 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. These restructurings have been reflected as of the beginning of the earliest period presented below.

21

CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME FOR THE THREE MONTHS ENDED JUNE 30, 2018
	Eaton Corporation plc			Eaton Corporation			Guarantors			Other subsidiaries			Consolidating adjustments			Total
Net sales	$	—		$	1,809		$	1,790		$	3,242		$	(1,354	)	$	5,487
Cost of products sold	—			1,427			1,289			2,312			(1,357		)	3,671
Selling and administrative expense	3			397			200			301			—			901
Research and development expense	—			37			35			73			—			145
Interest expense (income) - net	—			67			4			(6		)	3			68
Other expense (income) - net	(37		)	9			36			—			—			8
Equity in loss (earnings) of    subsidiaries, net of tax	(587		)	(209		)	(921		)	(658		)	2,375			—
Intercompany expense (income) - net	11			24			557			(592		)	—			—
Income (loss) before income taxes	610			57			590			1,812			(2,375		)	694
Income tax expense (benefit)	—			(7		)	(14		)	104			—			83
Net income (loss)	610			64			604			1,708			(2,375		)	611
Less net loss (income) for    noncontrolling interests	—			—			—			(1		)	—			(1		)
Net income (loss) attributable to    Eaton ordinary shareholders	$	610		$	64		$	604		$	1,707		$	(2,375	)	$	610
Other comprehensive income (loss)	$	(624	)	$	(63	)	$	(608	)	$	(1,390	)	$	2,061		$	(624	)
Total comprehensive income   (loss) attributable to Eaton   ordinary shareholders	$	(14	)	$	1		$	(4	)	$	317		$	(314	)	$	(14	)

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		$	1,727		$	3,109		$	(1,400	)	$	5,132
Cost of products sold	—			1,371			1,263			2,210			(1,396		)	3,448
Selling and administrative expense	4			361			200			326			—			891
Research and development expense	—			47			46			57			—			150
Interest expense (income) - net	—			60			6			(7		)	1			60
Other expense (income) - net	41			17			(38		)	(9		)	—			11
Equity in loss (earnings) of    subsidiaries, net of tax	(705		)	(167		)	(861		)	(747		)	2,480			—
Intercompany expense (income) - net	144			(45		)	352			(451		)	—			—
Income (loss) before income taxes	516			52			759			1,730			(2,485		)	572
Income tax expense (benefit)	—			3			3			52			(3		)	55
Net income (loss)	516			49			756			1,678			(2,482		)	517
Less net loss (income) for    noncontrolling interests	—			—			—			(1		)	—			(1		)
Net income (loss) attributable to    Eaton ordinary shareholders	$	516		$	49		$	756		$	1,677		$	(2,482	)	$	516
Other comprehensive income (loss)	$	323		$	17		$	321		$	714		$	(1,052	)	$	323
Total comprehensive income    (loss) attributable to Eaton    ordinary shareholders	$	839		$	66		$	1,077		$	2,391		$	(3,534	)	$	839

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CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME FOR THE SIX MONTHS ENDED JUNE 30, 2018
	Eaton Corporation plc			Eaton Corporation			Guarantors			Other subsidiaries			Consolidating adjustments			Total
Net sales	$	—		$	3,498		$	3,490		$	6,433		$	(2,683	)	$	10,738
Cost of products sold	—			2,779			2,525			4,622			(2,682		)	7,244
Selling and administrative expense	6			738			378			668			—			1,790
Research and development expense	—			76			76			149			—			301
Interest expense (income) - net	—			135			8			(7		)	2			138
Other expense (income) - net	(19		)	14			27			(16		)	—			6
Equity in loss (earnings) of    subsidiaries, net of tax	(1,101		)	(472		)	(1,737		)	(1,316		)	4,626			—
Intercompany expense (income) - net	16			2			1,044			(1,062		)	—			—
Income (loss) before income taxes	1,098			226			1,169			3,395			(4,629		)	1,259
Income tax expense (benefit)	—			(13		)	(28		)	203			(1		)	161
Net income (loss)	1,098			239			1,197			3,192			(4,628		)	1,098
Less net loss (income) for    noncontrolling interests	—			—			—			—			—			—
Net income (loss) attributable to    Eaton ordinary shareholders	$	1,098		$	239		$	1,197		$	3,192		$	(4,628	)	$	1,098
Other comprehensive income (loss)	$	(328	)	$	(29	)	$	(312	)	$	(777	)	$	1,118		$	(328	)
Total comprehensive income    (loss) attributable to Eaton    ordinary shareholders	$	770		$	210		$	885		$	2,415		$	(3,510	)	$	770

23

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		$	3,383		$	6,039		$	(2,710	)	$	9,980
Cost of products sold	—			2,622			2,491			4,350			(2,708		)	6,755
Selling and administrative expense	6			709			398			654			—			1,767
Research and development expense	—			94			88			111			—			293
Interest expense (income) - net	—			123			11			(13		)	—			121
Other expense (income) - net	48			27			(37		)	(33		)	—			5
Equity in loss (earnings) of    subsidiaries, net of tax	(1,288		)	(314		)	(1,643		)	(1,400		)	4,645			—
Intercompany expense (income) - net	284			(99		)	697			(882		)	—			—
Income (loss) before income taxes	950			106			1,378			3,252			(4,647		)	1,039
Income tax expense (benefit)	—			—			19			70			(1		)	88
Net income (loss)	950			106			1,359			3,182			(4,646		)	951
Less net loss (income) for    noncontrolling interests	—			—			—			(2		)	1			(1		)
Net income (loss) attributable to    Eaton ordinary shareholders	$	950		$	106		$	1,359		$	3,180		$	(4,645	)	$	950
Other comprehensive income (loss)	$	586		$	80		$	583		$	1,229		$	(1,892	)	$	586
Total comprehensive income (loss) attributable to Eaton ordinary shareholders	$	1,536		$	186		$	1,942		$	4,409		$	(6,537	)	$	1,536

24

CONDENSED CONSOLIDATING BALANCE SHEETS JUNE 30, 2018
	Eaton Corporation plc		Eaton Corporation		Guarantors			Other subsidiaries		Consolidating adjustments			Total
Assets
Current assets
Cash	$	—	$	5	$	10		$	241	$	—		$	256
Short-term investments	—		—		—			236		—			236
Accounts receivable - net	—		505		1,451			2,136		—			4,092
Intercompany accounts    receivable	1		1,643		1,838			3,168		(6,650		)	—
Inventory	—		530		772			1,535		(84		)	2,753
Prepaid expenses and    other current assets	—		131		98			332		15			576
Total current assets	1		2,814		4,169			7,648		(6,719		)	7,913
Property, plant and    equipment - net	—		844		689			1,929		—			3,462
Other noncurrent assets
Goodwill	—		1,317		6,705			5,405		—			13,427
Other intangible assets	—		133		3,129			1,788		—			5,050
Deferred income taxes	—		357		18			254		(333		)	296
Investment in subsidiaries	15,641		9,546		55,296			24,151		(104,634		)	—
Intercompany loans receivable	3,121		4,235		5,992			64,680		(78,028		)	—
Other assets	—		729		167			821		—			1,717
Total assets	$	18,763	$	19,975	$	76,165		$	106,676	$	(189,714	)	$	31,865
Liabilities and    shareholders’ equity
Current liabilities
Short-term debt	$	—	$	481	$	—		$	23	$	—		$	504
Current portion of    long-term debt	—		428		—			—		—			428
Accounts payable	—		474		437			1,281		—			2,192
Intercompany accounts payable	17		1,494		3,478			1,661		(6,650		)	—
Accrued compensation	—		79		46			228		—			353
Other current liabilities	2		506		226			1,179		(3		)	1,910
Total current liabilities	19		3,462		4,187			4,372		(6,653		)	5,387
Noncurrent liabilities
Long-term debt	—		5,784		957			8		4			6,753
Pension liabilities	—		329		88			757		—			1,174
Other postretirement    benefits liabilities	—		189		93			72		—			354
Deferred income taxes	—		1		589			229		(333		)	486
Intercompany loans payable	2,054		4,621		70,443			910		(78,028		)	—
Other noncurrent liabilities	—		345		265			376		—			986
Total noncurrent liabilities	2,054		11,269		72,435			2,352		(78,357		)	9,753
Shareholders’ equity
Eaton shareholders' equity	16,690		5,244		(457		)	99,917		(104,704		)	16,690
Noncontrolling interests	—		—		—			35		—			35
Total equity	16,690		5,244		(457		)	99,952		(104,704		)	16,725
Total liabilities and equity	$	18,763	$	19,975	$	76,165		$	106,676	$	(189,714	)	$	31,865

25

CONDENSED CONSOLIDATING BALANCE SHEETS DECEMBER 31, 2017
	Eaton Corporation plc		Eaton Corporation		Guarantors		Other subsidiaries		Consolidating adjustments			Total
Assets
Current assets
Cash	$	—	$	183	$	18	$	360	$	—		$	561
Short-term investments	—		—		—		534		—			534
Accounts receivable - net	—		482		1,376		2,085		—			3,943
Intercompany accounts    receivable	8		2,865		5,155		2,716		(10,744		)	—
Inventory	—		473		737		1,493		(83		)	2,620
Prepaid expenses and    other current assets	—		229		145		277		28			679
Total current assets	8		4,232		7,431		7,465		(10,799		)	8,337
Property, plant and    equipment - net	—		859		702		1,941		—			3,502
Other noncurrent assets
Goodwill	—		1,316		6,705		5,547		—			13,568
Other intangible assets	—		138		3,206		1,921		—			5,265
Deferred income taxes	—		356		6		215		(324		)	253
Investment in subsidiaries	15,045		9,445		75,404		39,848		(139,742		)	—
Intercompany loans receivable	3,122		7,105		2,909		61,427		(74,563		)	—
Other assets	—		748		166		784		—			1,698
Total assets	$	18,175	$	24,199	$	96,529	$	119,148	$	(225,428	)	$	32,623
Liabilities and    shareholders’ equity
Current liabilities
Short-term debt	$	—	$	—	$	—	$	6	$	—		$	6
Current portion of    long-term debt	—		542		35		1		—			578
Accounts payable	—		549		330		1,287		—			2,166
Intercompany accounts payable	4		4,917		4,418		1,405		(10,744		)	—
Accrued compensation	—		128		65		260		—			453
Other current liabilities	1		566		317		989		(1		)	1,872
Total current liabilities	5		6,702		5,165		3,948		(10,745		)	5,075
Noncurrent liabilities
Long-term debt	—		6,180		976		9		2			7,167
Pension liabilities	—		341		89		796		—			1,226
Other postretirement    benefits liabilities	—		192		96		74		—			362
Deferred income taxes	—		—		607		255		(324		)	538
Intercompany loans payable	917		3,808		68,685		1,153		(74,563		)	—
Other noncurrent liabilities	—		314		273		378		—			965
Total noncurrent liabilities	917		10,835		70,726		2,665		(74,885		)	10,258
Shareholders’ equity
Eaton shareholders' equity	17,253		6,662		20,638		112,498		(139,798		)	17,253
Noncontrolling interests	—		—		—		37		—			37
Total equity	17,253		6,662		20,638		112,535		(139,798		)	17,290
Total liabilities and equity	$	18,175	$	24,199	$	96,529	$	119,148	$	(225,428	)	$	32,623

26

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS FOR THE SIX MONTHS ENDED JUNE 30, 2018
	Eaton Corporation plc			Eaton Corporation			Guarantors			Other subsidiaries			Consolidating adjustments			Total
Net cash provided by (used in)    operating activities	$	—		$	(125	)	$	103		$	944		$	(84	)	$	838
Investing activities
Capital expenditures for property,    plant and equipment	—			(48		)	(51		)	(181		)	—			(280		)
Sales (purchases) of short-term investments - net	—			—			—			284			—			284
Investments in affiliates	—			(36		)	—			—			36			—
Loans to affiliates	—			(100		)	(85		)	(3,563		)	3,748			—
Repayments of loans from affiliates	—			507			886			3,110			(4,503		)	—
Other - net	—			(23		)	1			(19		)	—			(41		)
Net cash provided by (used in) investing activities	—			300			751			(369		)	(719		)	(37		)
Financing activities
Proceeds from borrowings	—			481			—			19			—			500
Payments on borrowings	—			(450		)	(35		)	(1		)	—			(486		)
Proceeds from borrowings from    affiliates	2,383			1,215			50			100			(3,748		)	—
Payments on borrowings from    affiliates	(1,226		)	(1,994		)	(524		)	(759		)	4,503			—
Capital contributions from affiliates	—			—			—			36			(36		)	—
Other intercompany financing    activities	—			411			(348		)	(63		)	—			—
Cash dividends paid	(578		)	—			—			—			—			(578		)
Cash dividends paid to affiliates	—			—			—			(84		)	84			—
Exercise of employee stock options	21			—			—			—			—			21
Repurchase of shares	(600		)	—			—			—			—			(600		)
Employee taxes paid from shares withheld	—			(15		)	(5		)	(3		)	—			(23		)
Other - net	—			(1		)	—			(1		)	—			(2		)
Net cash provided by (used in)    financing activities	—			(353		)	(862		)	(756		)	803			(1,168		)
Effect of currency on cash	—			—			—			62			—			62
Total increase (decrease) in cash	—			(178		)	(8		)	(119		)	—			(305		)
Cash at the beginning of the period	—			183			18			360			—			561
Cash at the end of the period	$	—		$	5		$	10		$	241		$	—		$	256

27

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		$	(12	)	$	969		$	1,014		$	(1,507	)	$	1,037
Investing activities
Capital expenditures for property,    plant and equipment	—			(45		)	(56		)	(145		)	—			(246		)
Sales (purchases) of short-term investments - net	—			—			—			(309		)	—			(309		)
Investments in affiliates	(90		)	(29		)	—			(90		)	209			—
Return of investments in affiliates	—			—			20			—			(20		)	—
Loans to affiliates	—			(17		)	(283		)	(3,570		)	3,870			—
Repayments of loans from affiliates	—			291			287			3,035			(3,613		)	—
Other - net	—			(26		)	(84		)	79			—			(31		)
Net cash provided by (used in)    investing activities	(90		)	174			(116		)	(1,000		)	446			(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			119			(209		)	—
Return of capital to affiliates	—			—			—			(20		)	20			—
Other intercompany financing activities	—			(288		)	(196		)	484			—			—
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		)	(234		)	(859		)	(173		)	1,061			(689		)
Effect of currency on cash	—			—			—			7			—			7
Total increase (decrease) in cash	(1		)	(72		)	(6		)	(152		)	—			(231		)
Cash at the beginning of the period	1			92			12			438			—			543
Cash at the end of the period	$	—		$	20		$	6		$	286		$	—		$	312

28

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 2017 net sales of $20.4 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 96,000 employees in 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
	2018		2017		2018		2017
Net sales	$	5,487	$	5,132	$	10,738	$	9,980
Net income attributable to Eaton ordinary shareholders	610		516		1,098		950
Net income per share attributable to Eaton ordinary shareholders - diluted	$	1.39	$	1.15	$	2.50	$	2.11

During the first quarter of 2018, Eaton re-segmented certain reportable operating segments due to a reorganization of the Company's businesses. The new reportable business segment is eMobility (which includes certain legacy Electrical Products and Vehicle product lines). For those reportable segments that were re-segmented, previously reported segment financial information has been updated for 2017. For additional information regarding the re-segmentation, see Note 13 to the Condensed Consolidated Financial Statements. The re-segmentation did not impact previously reported consolidated results of operations. For additional information regarding Eaton’s business segments, see Note 15 to the Consolidated Financial Statements contained in the 2017 Form 10-K.

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 adjusted earnings, adjusted 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 adjusted earnings and adjusted 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. 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 2 to the Condensed Consolidated Financial Statements.

29

Consolidated Financial Results

	Three months ended June 30						Increase (decrease)		Six months ended June 30						Increase (decrease)
	2018			2017					2018			2017
Net sales	$	5,487		$	5,132		7	%	$	10,738		$	9,980		8	%
Gross profit	1,816			1,684			8	%	3,494			3,225			8	%
Percent of net sales	33.1		%	32.8		%			32.5		%	32.3		%
Income before income taxes	694			572			21	%	1,259			1,039			21	%
Net income	611			517			18	%	1,098			951			15	%
Less net income for noncontrolling interests	(1		)	(1		)			—			(1		)
Net income attributable to Eaton    ordinary shareholders	610			516			18	%	1,098			950			16	%
Excluding acquisition integration charges,   after-tax (Note 2)	—			—					—			1
Adjusted earnings	$	610		$	516		18	%	$	1,098		$	951		15	%
Net income per share attributable to Eaton ordinary shareholders - diluted	$	1.39		$	1.15		21	%	$	2.50		$	2.11		18	%
Excluding per share impact of acquisition    integration charges, after-tax (Note 2)	—			—					—			—
Adjusted earnings per ordinary share	$	1.39		$	1.15		21	%	$	2.50		$	2.11		18	%

Net Sales

Net sales increased 7% in the second quarter of 2018 compared to the second quarter of 2017 due to an increase of 7% in organic sales and an increase of 1% from the impact of positive currency translation, partially offset by a decrease of 1% from the sale of a business and a stake in a joint venture in the second half of 2017. Net sales increased 8% in the first six months of 2018 compared to the first six months of 2017 due to an increase of 7% in organic sales and an increase of 2% from the impact of positive currency translation, partially offset by a decrease of 1% from the sale of a business and a stake in a joint venture in the second half of 2017. The increase in organic sales in the second quarter and first six months of 2018 was primarily due to higher sales volumes in all business segments.

Gross Profit

Gross profit margin increased from 32.8% in the second quarter of 2017 to 33.1% in the second quarter of 2018, and from 32.3% in the first six months of 2017 to 32.5% in the first six months of 2018. The increase in gross profit margin was primarily due to higher sales volumes and savings from restructuring actions.

Income Taxes

The effective income tax rate for the second quarter and first six months of 2018 was expense of 12.0% and 12.8% compared to expense of 9.7% and 8.5% for the second quarter and first six months of 2017. The increase in the effective tax rate in the second quarter and first six months of 2018 was due to greater levels of income in higher tax jurisdictions and the impact of the U.S. Tax Cuts and Jobs Act (“TCJA").

Net Income

Net income attributable to Eaton ordinary shareholders of $610 in the second quarter of 2018 increased 18% compared to Net income attributable to Eaton ordinary shareholders of $516 in the second quarter of 2017. Net income attributable to Eaton ordinary shareholders of $1,098 in the first six months of 2018 increased 16% compared to Net income attributable to Eaton ordinary shareholders of $950 in the first six months of 2017. The increase in the second quarter and first six months of 2018 was primarily due to higher sales volumes and savings from restructuring actions, partially offset by a higher tax rate.

Net income per ordinary share increased to $1.39 in the second quarter of 2018 compared to $1.15 in the second quarter of 2017. Net income per ordinary share increased to $2.50 in the first six months of 2018 compared to $2.11 in the first six months of 2017. The increase in the Net income per ordinary share in the second quarter and first six months of 2018 was due to higher Net income attributable to Eaton ordinary shareholders and the Company's share repurchases over the past year.

30

Adjusted Earnings

There were no acquisition integration charges in the first six months of 2018 compared to $1 in the first six months of 2017, which resulted in a 15% increase in Adjusted earnings compared to the 16% increase Net income attributable to Eaton ordinary shareholders.

There was no impact of excluding the per share impact of acquisition integration charges from Net income attributable to Eaton ordinary shareholders to arrive at Adjusted earnings per ordinary share for the first six months of 2018 and 2017.

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 2 to the Condensed Consolidated Financial Statements.

Electrical Products

	Three months ended June 30						Increase (decrease)		Six months ended June 30						Increase (decrease)
	2018			2017					2018			2017
Net sales	$	1,806		$	1,731		4	%	$	3,538		$	3,382		5	%
Operating profit	$	334		$	299		12	%	$	641		$	585		10	%
Operating margin	18.5		%	17.3		%			18.1		%	17.3		%
Acquisition integration charges	$	—		$	1				$	—		$	2
Before acquisition integration charges
Operating profit	$	334		$	300		11	%	$	641		$	587		9	%
Operating margin	18.5		%	17.3		%			18.1		%	17.4		%

Net sales increased 4% in the second quarter of 2018 compared to the second quarter of 2017 due to an increase of 3% in organic sales and an increase of 1% from the impact of positive currency translation. Net sales increased 5% in the first six months of 2018 compared to the first six months of 2017 due to an increase of 3% from the impact of positive currency translation and an increase of 2% in organic sales. Organic sales grew in the second quarter and first six months of 2018 in all regions, primarily driven by growth in products going into industrial applications, partially offset by weakness in North American lighting sales.

The operating margin increased from 17.3% in the second quarter of 2017 to 18.5% in the second quarter of 2018 and from 17.3% in the first six months of 2017 to 18.1% in the first six months of 2018 primarily due to higher sales volumes, savings from restructuring actions, and lower restructuring costs, partially offset by commodity inflation and increased freight costs.

The operating margin before acquisition integration charges increased from 17.3% in the second quarter of 2017 to 18.5% in the second quarter of 2018 and from 17.4% in the first six months of 2017 to 18.1% in the first six months of 2018 primarily due to an increase in the operating margin.

31

Electrical Systems and Services

	Three months ended June 30						Increase (decrease)		Six months ended June 30						Increase (decrease)
	2018			2017					2018			2017
Net sales	$	1,513		$	1,414		7	%	$	2,894		$	2,747		5	%
Operating profit	$	227		$	194		17	%	$	394		$	349		13	%
Operating margin	15.0		%	13.7		%			13.6		%	12.7		%

Net sales increased 7%in the second quarter of 2018 compared to the second quarter of 2017 due to an increase of 7% in organic sales and an increase of 1% from the impact of positive currency translation, partially offset by a decrease of 1% from a sale of a stake in a joint venture in the fourth quarter of 2017. Net sales increased 5% in the first six months of 2018 compared to the first six months of 2017 due to an increase of 5% in organic sales and an increase of 1% from the impact of positive currency translation, partially offset by a decrease of 1% from a sale of a stake in a joint venture in the fourth quarter of 2017. The increase in organic sales in the second quarter and first six months 2018 was primarily due to strength in large industrial projects in the United States, data centers, oil and gas markets, and services in North America.

The operating margin increased from 13.7% in the second quarter of 2017 to 15.0% in the second quarter of 2018 and from 12.7% in the first six months of 2017 to 13.6% in the first six months of 2018 primarily due to higher sales volumes, savings from restructuring actions, and lower restructuring costs, partially offset by commodity inflation and increased freight costs.

Hydraulics

	Three months ended June 30						Increase (decrease)		Six months ended June 30						Increase (decrease)
	2018			2017					2018			2017
Net sales	$	723		$	633		14	%	$	1,433		$	1,220		17	%
Operating profit	$	101		$	74		36	%	$	191		$	134		43	%
Operating margin	14.0		%	11.7		%			13.3		%	11.0		%

Net sales increased 14% in the second quarter of 2018 compared to the second quarter of 2017 due to an increase of 13% in organic sales and an increase of 1% from the impact of positive currency translation. Net sales increased 17% in the first six months of 2018 compared to the first six months of 2017 due to an increase of 14% in organic sales and an increase of 3% from the impact of positive currency translation. The increase in organic sales in the second quarter and first six months of 2018 was due to strength in global mobile OEM markets and distribution channels.

The operating margin increased from 11.7% in the second quarter of 2017 to 14.0% in the second quarter of 2018 and from 11.0% in the first six months of 2017 to 13.3% in the first six months of 2018 primarily due to higher sales volumes and savings from restructuring actions, partially offset by unfavorable product mix and increased freight costs.

Aerospace

	Three months ended June 30						Increase (decrease)		Six months ended June 30						Increase (decrease)
	2018			2017					2018			2017
Net sales	$	463		$	437		6	%	$	921		$	865		6	%
Operating profit	$	90		$	81		11	%	$	179		$	160		12	%
Operating margin	19.4		%	18.5		%			19.4		%	18.5		%

Net sales increased 6% in the second quarter and first six months of 2018 compared to the second quarter and first six months of 2017 due to an increase of 6% in organic sales. The increase in organic sales in the second quarter and first six months of 2018 was primarily due to higher sales to the military OEM market, and the commercial and military aftermarkets.

The operating margin increased from 18.5% in the second quarter of 2017 to 19.4% in second quarter of 2018 and from 18.5% in the first six months of 2017 to 19.4% in the first six months of 2018 primarily due to higher sales volumes.

32

Vehicle

	Three months ended June 30						Increase (decrease)		Six months ended June 30						Increase (decrease)
	2018			2017					2018			2017
Net sales	$	899		$	845		6	%	$	1,792		$	1,631		10	%
Operating profit	$	166		$	141		18	%	$	298		$	249		20	%
Operating margin	18.5		%	16.7		%			16.6		%	15.3		%

Net sales increased 6% in the second quarter of 2018 compared to the second quarter of 2017 due to an increase of 11% in organic sales, partially offset by a decrease of 5% from the sale of a business in the third quarter of 2017. Net sales increased 10% in the first six months of 2018 compared to the first six months of 2017 due to an increase of 12% in organic sales and an increase of 2% from the impact of positive currency translation, partially offset by a decrease of 4% from the sale of a business in the third quarter of 2017. The increase in organic sales in the second quarter and first six months of 2018 was driven by growth in the Americas and Asia Pacific regions, with particular strength in the North American Class 8 truck market.

The operating margin increased from 16.7% in the second quarter of 2017 to 18.5% in the second quarter of 2018 and from 15.3% in the first six months of 2017 to 16.6% in the first six months of 2018 primarily due to higher sales volumes, partially offset by commodity inflation and increased freight costs.

eMobility

	Three months ended June 30						Increase (decrease)		Six months ended June 30						Increase (decrease)
	2018			2017					2018			2017
Net sales	$	83		$	72		15	%	$	160		$	135		19	%
Operating profit	$	14		$	13		8	%	$	25		$	24		4	%
Operating margin	16.9		%	18.1		%			15.6		%	17.8		%

Net sales increased 15% in the second quarter of 2018 compared to the second quarter of 2017 due to an increase of 14% in organic sales and an increase of 1% from the impact of positive currency translation. Net sales increased 19% in the first six months of 2018 compared to the first six months of 2017 due to an increase of 17% in organic sales and an increase of 2% from the impact of positive currency translation. The increase in organic sales in the second quarter and first six months of 2018 was due to strength in North America and Europe.

The operating margin decreased from 18.1% in the second quarter of 2017 to 16.9% in the second quarter of 2018 and from 17.8% in the first six months of 2017 to 15.6% in the first six months of 2018 primarily due to increased research and development costs.

Corporate Expense

	Three months ended June 30					Increase (decrease)		Six months ended June 30				Increase (decrease)
	2018			2017				2018		2017
Amortization of intangible assets	$	96		$	96	—	%	$	194	$	190	2	%
Interest expense - net	68			60		13	%	138		121		14	%
Pension and other postretirement    benefits expense	(1		)	11		(109	)%	1		22		(95	)%
Other corporate expense - net	75			63		19	%	136		129		5	%
Total corporate expense	$	238		$	230	3	%	$	469	$	462	2	%

Total corporate expense was $238 in the second quarter of 2018 compared to corporate expense of $230 in the second quarter of 2017. Total corporate expense was $469 in the first six months of 2018 compared to $462 in the first six months of 2017. The increase in Total corporate expense for the second quarter and first six months of 2018 was primarily due to higher interest expense and other corporate expenses, partially offset by a decrease in Pension and other postretirement benefits expense as a result of favorable returns on plan assets during 2017 and the Company's contributions to the pension plans.

33

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, 2018. 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 $838 in the first six months of 2018, a decrease of $199 in the source of cash compared to $1,037 in the first six months of 2017. The decrease in net cash provided by operating activities in the first six months of 2018 was driven by higher working capital balances compared to 2017 due to higher sales and pre-buying inventory to mitigate the impact of trade tariffs, partially offset by lower pension contributions. Other-net includes the impact of foreign currency gains and losses related to the remeasurement of intercompany balance sheet exposures, which have no impact on Operating cash flow.

Investing Cash Flow

Net cash used in investing activities was $37 in the first six months of 2018, a decrease in the use of cash of $549 compared to $586 in the first six months of 2017. The decrease in the use of cash was primarily driven by net sales of short-term investments of $284 in 2018 compared to net purchases of $309 in 2017.

Financing Cash Flow

Net cash used in financing activities was $1,168 in the first six months of 2018, an increase of $479 in the use of cash compared to $689 in the first six months of 2017. The increase in the use of cash was primarily due to a decrease of $332 in proceeds from borrowings, which totaled $500 in 2018 and $832 in 2017, and by an increase of $135 in share repurchases during the first six months of 2018 compared to the first six months of 2017.

FORWARD-LOOKING STATEMENTS

This Form 10-Q Report contains forward-looking statements concerning legal contingencies, 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 potential effects on our businesses from natural disasters; 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, 2017.

34

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, 2018.

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 2018, 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.

35

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 2017 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 2017 Form 10-K.

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

(c) Issuer's Purchases of Equity Securities

During the second quarter of 2018, 4.0 million ordinary shares were repurchased in the open market at a total cost of $300 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 2018 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	—	$	—	—	$	702
May	4,030,195	$	74.44	4,030,195	$	402
June	—	$	—	—	$	402
Total	4,030,195	$	74.44	4,030,195

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, certain of our wholly-owned non-U.S. subsidiaries sold various electrical and hydraulic products to customers in Iran. We received total revenue of approximately 531,083 Euros and realized net profits of approximately 121,236 Euros from the sales (approximately $626,639 and $143,050 in whole U.S. dollars, respectively). Eaton has determined not to take any future orders for sales to Iran.  Any shipments pursuant to outstanding contracts will be made in accordance with applicable U.S. law.

36

ITEM 6. EXHIBITS.

Eaton Corporation plc

Second Quarter 2018 Report on Form 10-Q

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
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 6, 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 6, 2013)
4.4	Supplemental Indenture No. 3, dated as of December 20, 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 4.4 of the registrant's Form 10-K filed on February 28, 2018)
4.5	Supplemental Indenture No. 4, dated as of December 20, 2017 and effective as of January 1, 2018, among Eaton Corporation, the guarantors named therein and The Bank of New York Mellon Trust Company, N.A., as trustee (incorporated by reference Exhibit 4.5 of the registrant's Form 10-K filed on February 28, 2018)
4.6	Supplemental Indenture No. 5, dated as of February 16, 2018, among Eaton Corporation, the guarantors named therein and The Bank of New York Mellon Trust Company, N.A., as trustee (incorporated by reference Exhibit 4.6 of the registrant's Form 10-K filed on February 28, 2018)
4.7	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 - 4.6) 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, 2018 and 2017, (ii) Consolidated Statements of Comprehensive Income for the three months ended June 30, 2018 and 2017, (iii) Condensed Consolidated Balance Sheets at June 30, 2018 and December 31, 2017, (iv) Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2018 and 2017 and (v) Notes to Condensed Consolidated Financial Statements for the six months ended June 30, 2018.

37

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

			EATON CORPORATION plc
			Registrant
Date:	July 31, 2018	By:	/s/ Richard H. Fearon
			Richard H. Fearon
			Principal Financial Officer
			(On behalf of the registrant and as Principal Financial Officer)

38

EX-12

Eaton Corporation plc

Second Quarter 2018 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)	2018		2017			2016			2015			2014			2013
Income from continuing operations before income taxes    and noncontrolling interests in consolidated subsidiaries	$	1,259	$	3,368		$	2,118		$	2,133		$	1,762		$	1,870
Adjustments
Loss (income) of equity investees	12		(1		)	(14		)	(11		)	(6		)	2
Distributed income of equity investees	2		7			9			9			4			77
Interest expensed	160		273			240			237			250			290
Amortization of debt issue costs	2		7			7			8			9			10
Estimated portion of rent expense representing interest	39		74			73			75			81			80
Amortization of capitalized interest	6		11			12			10			14			13
Adjusted income from continuing operations before    income taxes	$	1,480	$	3,739		$	2,445		$	2,461		$	2,114		$	2,342
Fixed charges
Interest expensed	$	160	$	273		$	240		$	237		$	250		$	290
Interest capitalized	8		11			12			13			13			11
Amortization of debt issue costs	2		7			7			8			9			10
Estimated portion of rent expense representing interest	39		74			73			75			81			80
Total fixed charges	$	209	$	365		$	332		$	333		$	353		$	391
Ratio of earnings to fixed charges	7.08		10.24			7.36			7.39			5.99			5.99

EX-31.1

Eaton Corporation plc

Second Quarter 2018 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:	July 31, 2018	/s/ Craig Arnold
		Craig Arnold
		Principal Executive Officer

EX-31.2

Eaton Corporation plc

Second Quarter 2018 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:	July 31, 2018	/s/ Richard H. Fearon
		Richard H. Fearon
		Principal Financial Officer

EX-32.1

Eaton Corporation plc

Second Quarter 2018 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, 2018 (“10-Q Report”).

I hereby certify that, based on my knowledge, the 10-Q Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C 78m), and information contained in the 10-Q Report fairly presents, in all material respects, the financial condition and results of operations of Eaton Corporation plc and its consolidated subsidiaries.

Date:	July 31, 2018	/s/ Craig Arnold
		Craig Arnold
		Principal Executive Officer

EX-32.2

Eaton Corporation plc

Second Quarter 2018 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, 2018 (“10-Q Report”).

I hereby certify that, based on my knowledge, the 10-Q Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C 78m), and information contained in the 10-Q Report fairly presents, in all material respects, the financial condition and results of operations of Eaton Corporation plc and its consolidated subsidiaries.

Date:	July 31, 2018	/s/ Richard H. Fearon
		Richard H. Fearon
		Principal Financial Officer

XML

Document and Entity Information shares in Millions	6 Months Ended
	Jun. 30, 2018 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, 2018
Amendment Flag	false
Document Fiscal Year Focus	2018
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)	433.3

XML

CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Income Statement [Abstract]
Net sales	$ 5,487	$ 5,132	$ 10,738	$ 9,980
Cost of products sold	3,671	3,448	7,244	6,755
Selling and administrative expense	901	891	1,790	1,767
Research and development expense	145	150	301	293
Interest expense - net	68	60	138	121
Other expense - net	8	11	6	5
Income before income taxes	694	572	1,259	1,039
Income tax expense	83	55	161	88
Net income	611	517	1,098	951
Less net income for noncontrolling interests	(1)	(1)	0	(1)
Net income attributable to Eaton ordinary shareholders	$ 610	$ 516	$ 1,098	$ 950
Net income per share attributable to Eaton ordinary shareholders
Diluted (usd per share)	$ 1.39	$ 1.15	$ 2.50	$ 2.11
Basic (usd per share)	$ 1.40	$ 1.16	$ 2.51	$ 2.12
Weighted-average number of ordinary shares outstanding
Diluted (shares)	437.3	448.6	439.5	449.8
Basic (shares)	435.2	446.3	437.0	447.5
Cash dividends declared per ordinary share (usd per share)	$ 0.66	$ 0.6	$ 1.32	$ 1.2

XML

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Statement of Comprehensive Income [Abstract]
Net income	$ 611	$ 517	$ 1,098	$ 951
Less net income for noncontrolling interests	(1)	(1)	0	(1)
Net income attributable to Eaton ordinary shareholders	610	516	1,098	950
Other comprehensive (loss) income, net of tax
Currency translation and related hedging instruments	(671)	320	(414)	548
Pensions and other postretirement benefits	56	4	82	37
Cash flow hedges	(9)	(1)	4	1
Other comprehensive (loss) income attributable to Eaton ordinary shareholders	(624)	323	(328)	586
Total comprehensive (loss) income attributable to Eaton ordinary shareholders	$ (14)	$ 839	$ 770	$ 1,536

XML

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions	Jun. 30, 2018	Dec. 31, 2017
Current assets
Cash	$ 256	$ 561
Short-term investments	236	534
Accounts receivable - net	4,092	3,943
Inventory	2,753	2,620
Prepaid expenses and other current assets	576	679
Total current assets	7,913	8,337
Land and buildings	2,458	2,491
Machinery and equipment	6,035	6,014
Gross property, plant and equipment	8,493	8,505
Accumulated depreciation	(5,031)	(5,003)
Net property, plant and equipment	3,462	3,502
Other noncurrent assets
Goodwill	13,427	13,568
Other intangible assets	5,050	5,265
Deferred income taxes	296	253
Other assets	1,717	1,698
Total assets	31,865	32,623
Current liabilities
Short-term debt	504	6
Current portion of long-term debt	428	578
Accounts payable	2,192	2,166
Accrued compensation	353	453
Other current liabilities	1,910	1,872
Total current liabilities	5,387	5,075
Noncurrent liabilities
Long-term debt	6,753	7,167
Pension liabilities	1,174	1,226
Other postretirement benefits liabilities	354	362
Deferred income taxes	486	538
Other noncurrent liabilities	986	965
Total noncurrent liabilities	9,753	10,258
Shareholders’ equity
Eaton shareholders’ equity	16,690	17,253
Noncontrolling interests	35	37
Total equity	16,725	17,290
Total liabilities and equity	$ 31,865	$ 32,623

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CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Operating activities
Net income	$ 1,098	$ 951
Adjustments to reconcile to net cash provided by operating activities
Depreciation and amortization	457	453
Deferred income taxes	(109)	(105)
Pension and other postretirement benefits expense	82	104
Contributions to pension plans	(72)	(160)
Contributions to other postretirement benefits plans	(12)	(11)
Changes in working capital	(482)	(381)
Other - net	(124)	186
Net cash provided by operating activities	838	1,037
Investing activities
Capital expenditures for property, plant and equipment	(280)	(246)
Sales (purchases) of short-term investments - net	284	(309)
Other - net	(41)	(31)
Net cash used in investing activities	(37)	(586)
Financing activities
Proceeds from borrowings	500	832
Payments on borrowings	(486)	(543)
Cash dividends paid	(578)	(537)
Exercise of employee stock options	21	49
Repurchase of shares	(600)	(465)
Employee taxes paid from shares withheld	(23)	(21)
Other - net	(2)	(4)
Net cash provided by (used in) financing activities	(1,168)	(689)
Effect of currency on cash	62	7
Total decrease in cash	(305)	(231)
Cash at the beginning of the period	561	543
Cash at the end of the period	$ 256	$ 312

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BASIS OF PRESENTATION

6 Months Ended

Jun. 30, 2018

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 2017 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 2018, Eaton re-segmented certain reportable operating segments due to a reorganization of the Company's businesses. The new reportable business segment is eMobility (which includes certain legacy Electrical Products and Vehicle product lines). See Note 13 for additional information related to these segments.

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

Revenue Recognition

Sales are recognized when control of promised goods or services are transferred to customers in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. Control is transferred when the customer has the ability to direct the use of and obtain benefits from the goods or services. The majority of the Company’s sales agreements contain performance obligations satisfied at a point in time when control is transferred to the customer. Sales recognized over time are generally accounted for using an input measure to determine progress completed at the end of the period. Sales for service contracts generally are recognized as the services are provided. For agreements with multiple performance obligations, judgment is required to determine whether performance obligations specified in these agreements are distinct and should be accounted for as separate revenue transactions for recognition purposes. In these types of agreements, we generally allocate sales price to each distinct obligation based on the price of each item sold in separate transactions.

Payment terms vary by the type and location of the customer and the products or services offered. Generally, the time between when revenue is recognized and payment is due is not significant. Eaton does not evaluate whether the selling price includes a financing interest component for contracts that are less than a year. Sales, value added, and other taxes collected concurrent with revenue are excluded from sales. Shipping and handling costs are treated as fulfillment costs and are included in Cost of products sold.

Eaton records reductions to sales for returns, and customer and distributor incentives, primarily comprised of rebates, at the time of the initial sale. Rebates are estimated based on sales terms, historical experience, trend analysis, and projected market conditions in the various markets served. The rebate programs offered vary across businesses due to the numerous markets Eaton serves, but the most common incentives relate to amounts paid or credited to customers for achieving defined volume levels. Returns are estimated at the time of the sale primarily based on historical experience and recorded gross on the Consolidated Balance Sheet. See Note 3 for additional information.

Adoption of New Accounting Standards

Eaton adopted Accounting Standard Update 2014-09, Revenue from Contracts with Customers, at the start of the first quarter of 2018 using the modified retrospective approach and recorded a cumulative effect adjustment to retained earnings based on the current terms and conditions for open contracts as of January 1, 2018. The adoption of the standard did not have a material impact on the Company’s Consolidated financial statements. The comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods.

Consolidated Balance Sheet		Balance at December 31, 2017		Adjustments due to ASU 2014-09			Balance at January 1, 2018
Assets
	Accounts receivable - net	$	3,943	$	(99	)	$	3,844
	Prepaid expenses and other current assets	679		129			808
	Deferred income taxes	253		1			254
Liabilities and shareholders' equity
	Other current liabilities	$	1,872	$	33		$	1,905
	Eaton shareholders' equity	17,253		(2		)	17,251

Eaton adopted Accounting Standards Update 2016-16, Intra-Entity Transfers of Assets Other Than Inventory (ASU 2016-16), at the start of the first quarter of 2018. This accounting standard requires companies to recognize the income tax effects of intercompany sales and transfers of assets other than inventory in the period in which the transfer occurs. The previous accounting standard required companies to defer the income tax effects of intercompany transfers of assets by recording a prepaid tax, until such assets were sold to an outside party or otherwise recognized. ASU 2016-16 requires companies to write off any income tax amounts that had been deferred as prepaid taxes from past intercompany transactions, and record deferred tax balances for amounts that have not been recognized, through a cumulative-effect adjustment to retained earnings. Upon adoption, the Company recorded a cumulative-effect adjustment of $199 to reduce retained earnings.

Eaton adopted Accounting Standards Update 2017-07, Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost (ASU 2017-07), at the start of the first quarter of 2018. The new standard requires companies to present service costs consistent with other employee compensation costs on the income statement and separate from all other elements of pension costs. The retrospective adoption of this standard resulted in an increase in selling and administrative expense with a corresponding decrease in Other expense - net of $1 for the six months ended June 30, 2018, and a reduction in selling and administrative expense with a corresponding increase in Other expense - net of $20 for the six months ended June 30, 2017.

Recently Issued Accounting Pronouncement

In February 2016, the FASB issued Accounting Standards Update 2016-02, Leases (Topic 842), (ASU 2016-02). This accounting standard requires that a lessee recognize a lease asset and a lease liability on its balance sheet for all leases, including operating leases, with a term greater than 12 months. ASU 2016-02 will require additional disclosures in the notes to the consolidated financial statements and is effective for annual and interim reporting periods beginning after December 15, 2018. A project team has been formed to evaluate and implement the new standard. The project team is working to gather the data required to account for leases under the new standard, and validating the functionality of third-party lease accounting software. In addition, the Company is in the process of identifying and implementing the appropriate changes to business processes and controls to support recognition and disclosure under the new standard. Eaton plans to adopt the standard as of the first quarter of 2019. 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.

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ACQUISITION INTEGRATION CHARGES

6 Months Ended

Jun. 30, 2018

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
	2018		2017		2018		2017
Electrical Products	$	—	$	1	$	—	$	2
Total acquisition integration charges before income taxes	—		1		—		2
Income taxes	—		1		—		1
Total after income taxes	$	—	$	—	$	—	$	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. In Business Segment Information, the charges reduced Operating profit of the related business segment. See Note 13 for additional information about business segments.

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REVENUE RECOGNITION

6 Months Ended

Jun. 30, 2018

Revenue from Contract with Customer [Abstract]

REVENUE RECOGNITION

REVENUE RECOGNITION

Sales are recognized when obligations under the terms of the contract are satisfied and control of promised goods or services have transferred to our customers. Sales are measured at the amount of consideration the Company expects to be paid in exchange for these products or services.

The majority of the Company’s sales agreements contain performance obligations satisfied at a point in time when title and risk and rewards of ownership have transferred to the customer. Sales recognized over time are less than 5% of Eaton’s Consolidated Net Sales. Sales recognized over time are generally accounted for using an input measure to determine progress completed at the end of the period. Sales for service contracts generally are recognized as the services are provided. For agreements with multiple performance obligations, judgment is required to determine whether performance obligations specified in these agreements are distinct and should be accounted for as separate revenue transactions for recognition purposes. In these types of agreements, we generally allocate sales price to each distinct obligation based on the price of each item sold in separate transactions.

Due to the nature of the work required to be performed for obligations recognized over time, Eaton estimates total costs by contract. The estimate of total costs are subject to judgment. Estimated amounts are included in the recognized sales price to the extent it is not probable that a significant reversal of cumulative sales will occur. Additionally, contracts can be modified to account for changes in contract specifications, requirements or sale price. The effect of a contract modification on the sales price or adjustments to the measure of completion under the input method are recognized as adjustments to revenue on a cumulative catch-up basis.

Payment terms vary by the type and location of the customer and the products or services offered. Generally, the time between when revenue is recognized and when payment is due is not significant. Eaton does not evaluate whether the selling price includes a financing interest component for contracts that are less than a year. Sales, value added, and other taxes collected concurrent with revenue are excluded from sales. Shipping and handling costs are treated as fulfillment costs and are included in Cost of products sold.

Eaton records reductions to sales for returns, and customer and distributor incentives, primarily comprised of rebates, at the time of the initial sale. Rebates are estimated based on sales terms, historical experience, trend analysis, and projected market conditions in the various markets served. The rebate programs offered vary across businesses due to the numerous markets Eaton serves, but the most common incentives relate to amounts paid or credited to customers for achieving defined volume levels. Returns are estimated at the time of the sale primarily based on historical experience and are recorded gross on the Condensed Consolidated Balance Sheet.

Sales commissions are expensed when the amortization period is less than a year and are generally not capitalized as they are typically earned at the completion of the contract when the customer is invoiced or when the customer pays Eaton.

Sales of products and services varies by segment and are discussed in Note 15 of Eaton’s 2017 Form 10-K and in Note 13.

In the Electrical Products segment, sales contracts are primarily for electrical components, industrial components, residential products, single phase power quality, emergency lighting, fire detection, wiring devices, structural support systems, circuit protection, and lighting products. These sales contracts are primarily based on a customer’s purchase order followed by our order acknowledgement, and may also include a master supply or distributor agreement. In this segment, performance obligations are generally satisfied at a point in time either when we ship the product from our facility, or when it arrives at the customer’s facility.

In the Electrical Systems and Services segment, sales contracts are primarily for power distribution and assemblies, three phase power quality, hazardous duty electrical equipment, intrinsically safe explosion-proof instrumentation, utility power distribution, power reliability equipment, and services. The majority of the sales contracts in this segment contain performance obligations satisfied at a point in time either when we ship the product from our facility, or when it arrives at the customer’s facility; however, certain power distribution and power quality services are recognized over time.

Many of the products and services in power distribution and power quality services meet the definition of continuous transfer of control to customers and are recognized over time. These products are engineered to a customer’s design specifications, have no alternative use to Eaton, and are controlled by the customer as evidenced by the customer’s contractual ownership of the work in process or our right to payment for work performed to date plus a reasonable margin. As control is transferring over time, sales are recognized based on the extent of progress towards completion of the obligation. Eaton generally uses an input method to determine the progress completed and sales are recorded proportionally as costs are incurred. Incurred cost represent work performed, which corresponds with, and thereby best depicts, the transfer of control to the customer.

In the Hydraulics segment, sales contracts are primarily for hydraulic components and systems for industrial and mobile equipment. These sales contracts are primarily based on a customer’s purchase order. In this segment, performance obligations are generally satisfied at a point in time when we ship the product from our facility.

In the Aerospace segment, sales contracts are primarily for aerospace fuel, hydraulics, and pneumatic systems for commercial and military use. These sales contracts are primarily based on a customer’s purchase order, and frequently covered by terms and conditions included in a long-term agreement. In this segment, performance obligations are generally satisfied at a point in time either when we ship the product from our facility, or when it arrives at the customer’s facility. Our military contracts are primarily fixed-price contracts that are not subject to performance-based payments or progress payments from the customer.

In the Vehicle segment, sales contracts are primarily for drivetrains, powertrain systems and critical components that reduce emissions and improve fuel economy, stability, performance, and safety of cars, light trucks and commercial vehicles. These sales contracts are primarily based on a customer’s purchase order or a blanket purchase order subject to firm releases, frequently covered by terms and conditions included in a master supply agreement. In this segment, performance obligations are generally satisfied at a point in time either when we ship the product from our facility, or when it arrives at the customer’s facility.

In the eMobility segment, sales contracts are primarily for electronic and mechanical components and systems that improves the power management and performance of both on-road and off-road vehicles. These sales contracts are primarily based on a customer’s purchase order. In this segment, performance obligations are generally satisfied at a point in time either when we ship the product from our facility, or when it arrives at the customer’s facility.

In limited circumstances, primarily in the Electrical and Vehicle segments, Eaton sells separately-priced warranties that extend the warranty coverage beyond the standard coverage offered on specific products. Sales for these separately-priced warranties are recorded based on their stand-alone selling price and are recognized as revenue over the length of the warranty period.

The Company’s six operating segments and the following tables disaggregate sales by lines of businesses, geographic destination, market channel or end market.

	Three months ended June 30, 2018
Net sales	United States		Rest of World		Total
Electrical Products	$	1,033	$	773	$	1,806
Electrical Systems and Services	983		530		1,513
Hydraulics	309		414		723
	Original Equipment Manufacturers		Aftermarket, Distribution and End User
Aerospace	$	266	$	197	463
	Commercial		Passenger and Light Duty
Vehicle	$	452	$	447	899
eMobility					83
Total					$	5,487

	Six months ended June 30, 2018
Net sales	United States		Rest of World		Total
Electrical Products	$	1,993	$	1,545	$	3,538
Electrical Systems and Services	1,877		1,017		2,894
Hydraulics	606		827		1,433
	Original Equipment Manufacturers		Aftermarket, Distribution and End User
Aerospace	$	530	$	391	921
	Commercial		Passenger and Light Duty
Vehicle	$	882	$	910	1,792
eMobility					160
Total					$	10,738

The timing of revenue recognition, billings and cash collections results in billed accounts receivable, unbilled receivables (revenue recognized exceeds amount billed to the customer), and deferred revenue (advance payments and billings in excess of revenue recognized). Accounts receivables from customers were $3,606 and $3,399 at June 30, 2018 and December 31, 2017, respectively. Amounts are billed as work progresses in accordance with agreed-upon contractual terms, either at periodic intervals or upon achievement of contractual milestones. These assets and liabilities are reported on the Condensed Consolidated Balance Sheets on a contract-by-contract basis at the end of each reporting period. Unbilled receivables were $150 and $117 at June 30, 2018 and January 1, 2018, respectively, and are recorded in Prepaid expenses and other current assets. The increase in the unbilled receivables was primarily due to revenue recognized and not yet billed, partially offset by billings to customers during the quarter.

Changes in the deferred revenue liabilities are as follows:

	Deferred Revenue
Balance at January 1, 2018	$	227
Customer deposits and billings	463
Revenue recognized in the period	(443		)
Translation	(3		)
Balance at June 30, 2018	$	244

A significant portion of open orders placed with Eaton are by original equipment manufacturers or distributors. These open orders are not considered firm as they have been historically subject to releases by customers. In measuring backlog of unsatisfied or partially satisfied obligations, only the amount of orders to which customers are firmly committed are included. Using this criterion, total backlog at June 30, 2018 was approximately $5.4 billion. Eaton expects to recognize approximately 89% of this backlog in the next twelve months and the rest thereafter.

Impact of new accounting standard

In accordance with the new revenue accounting requirements, the impact of the adoption on the financial statement line items within the accompanying financial statements was as follows:

	Three months ended June 30, 2018
Consolidated Statements of Income	As Reported		Adjustment			Balances without Adoption of ASC 606
Net sales	$	5,487	$	(11	)	$	5,476
Cost of products sold	3,671		(6		)	3,665
Income before income taxes	694		(5		)	689
Income tax expense	83		(1		)	82
Net income	611		(4		)	607
Net income attributable to Eaton ordinary shareholders	$	610	$	(4	)	$	606

	Six months ended June 30, 2018
Consolidated Statements of Income	As Reported		Adjustment			Balances without Adoption of ASC 606
Net sales	$	10,738	$	(18	)	$	10,720
Cost of products sold	7,244		(10		)	7,234
Income before income taxes	1,259		(8		)	1,251
Income tax expense	161		(2		)	159
Net income	1,098		(6		)	1,092
Net income attributable to Eaton ordinary shareholders	$	1,098	$	(6	)	$	1,092

	June 30, 2018
Condensed Consolidated Balance Sheets	As Reported		Adjustment			Balances without Adoption of ASC 606
Assets
Accounts receivable - net	$	4,092	$	121		$	4,213
Inventory	2,753		9			2,762
Prepaid expenses and other current assets	576		(164		)	412
Deferred income taxes	296		(1		)	295
Liabilities and shareholders’ equity
Other current liabilities	$	1,910	$	(31	)	$	1,879
Eaton shareholders' equity	$	16,725	$	(4	)	$	16,721

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RESTRUCTURING CHARGES

6 Months Ended

Jun. 30, 2018

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. The multi-year initiative concluded at the end of 2017.

A summary of liabilities related to workforce reductions, plant closings and other associated costs announced as part of this program follows:

	Workforce reductions			Plant closings and other			Total
Balance at December 31, 2016	$	113		$	1		$	114
Liability recognized	57			59			116
Payments	(102		)	(39		)	(141		)
Other adjustments	(1		)	(16		)	(17		)
Balance at December 31, 2017	67			5			72
Payments	(25		)	(4		)	(29		)
Other adjustments	(10		)	—			(10		)
Balance at June 30, 2018	$	32		$	1		$	33

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GOODWILL

6 Months Ended

Jun. 30, 2018

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL

GOODWILL

Change in the carrying amount of goodwill by segment follows:

	December 31, 2017		Translation			June 30, 2018
Electrical Products	$	6,678	$	(71	)	$	6,607
Electrical Systems and Services	4,311		(36		)	4,275
Hydraulics	1,257		(29		)	1,228
Aerospace	947		(3		)	944
Vehicle	294		(2		)	292
eMobility	81		—			81
Total	$	13,568	$	(141	)	$	13,427

Eaton re-segmented certain reportable operating segments due to a reorganization of the Company's businesses. The new reportable business segment is eMobility (which includes certain legacy Electrical Products and Vehicle product lines). The Company used the relative fair value method to reallocate goodwill to the associated reporting units.

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RETIREMENT BENEFITS PLANS

6 Months Ended

Jun. 30, 2018

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
	2018			2017			2018			2017			2018			2017
Service cost	$	25		$	24		$	16		$	18		$	—		$	—
Interest cost	31			31			13			14			4			4
Expected return on plan assets	(64		)	(61		)	(26		)	(23		)	(1		)	(1		)
Amortization	23			21			10			12			(3		)	(3		)
	15			15			13			21			—			—
Settlements	11			17			—			—			—			—
Total expense	$	26		$	32		$	13		$	21		$	—		$	—
	United States pension benefit expense						Non-United States pension benefit expense						Other postretirement benefits expense
	Six months ended June 30
	2018			2017			2018			2017			2018			2017
Service cost	$	50		$	48		$	32		$	35		$	1		$	1
Interest cost	61			62			27			27			7			7
Expected return on plan assets	(127		)	(122		)	(53		)	(46		)	(2		)	(2		)
Amortization	47			41			20			25			(6		)	(6		)
	31			29			26			41			—			—
Settlements	25			34			—			—			—			—
Total expense	$	56		$	63		$	26		$	41		$	—		$	—

The components of retirement benefits expense other than service costs are included in Other expense - net.

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LEGAL CONTINGENCIES

6 Months Ended

Jun. 30, 2018

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 2011, Pepsi-Cola Metropolitan Bottling Company, Inc. (“Pepsi”) filed an action against (a) Cooper Industries, LLC, Cooper Industries, Ltd., Cooper Holdings, Ltd., Cooper US, Inc., and Cooper Industries plc (collectively, “Cooper”), (b) M&F Worldwide Corp., Mafco Worldwide Corp., Mafco Consolidated Group LLC, and PCT International Holdings, Inc. (collectively, “Mafco”), and (c) the Pneumo Abex Asbestos Claims Settlement Trust (the “Trust”) in Texas state court. Pepsi alleged that it was harmed by a 2011 settlement agreement (“2011 Settlement”) among Cooper, Mafco, and Pneumo Abex, LLC (“Pneumo,” which prior to the 2011 Settlement was a Mafco subsidiary), which settlement resolved litigation that Pneumo had previously brought against Cooper involving, among other things, a guaranty related to Pneumo’s friction products business. In November 2015, after a Texas court ruled that Pepsi's claims should be heard in arbitration, Pepsi filed a demand for arbitration against Cooper, Mafco, the Trust, and Pneumo. Pepsi subsequently dropped claims against all parties except Cooper. An arbitration under the auspices of the American Arbitration Association commenced in October 2017. Pepsi’s experts have opined, among other things, that the value contributed to the Trust for a release of the guaranty was below reasonably equivalent value, and that an inability of Pneumo to satisfy future liabilities may result in plaintiffs suing Pepsi under various theories. Cooper submitted various expert reports and, among other things, Cooper’s experts have opined that Pepsi has no basis to seek any damages and that Cooper paid reasonably equivalent value for the release of its indemnity obligations under the guaranty. The arbitration proceedings closed in December 2017. On July 11, 2018, the arbitration panel made certain findings and concluded that the value contributed to the Trust did not constitute reasonably equivalent value, but ordered the parties to recalculate the amount that should have been contributed to the Trust as of the date of the 2011 transaction. Based on the findings made by the panel and the recalculation ordered by the panel, Cooper believes that no additional amount should be contributed. Pepsi argued that an additional $347 should be contributed. Cooper and its expert disagree with Pepsi’s argument and believe that Pepsi’s recalculation is flawed and fails to comply with the instructions of the panel. Based on its calculation, the Company continues to believe that the ultimate resolution of this matter will not have a material impact on the Company’s consolidated financial statements.

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INCOME TAXES

6 Months Ended

Jun. 30, 2018

Income Tax Disclosure [Abstract]

INCOME TAXES

INCOME TAXES

The effective income tax rate for the second quarter and the first six month of 2018 was expense of 12.0% and 12.8% compared to expense of 9.7% and 8.5% for the second quarter and first six months of 2017. The increase in the effective tax rate in the second quarter and first six months of 2018 was due to greater levels of income in higher tax jurisdictions and the impact of the U.S. Tax Cuts and Jobs Act (“TCJA"). During the second quarter of 2018, the Company increased tax contingencies for the current and prior years which was offset by a corresponding decrease of a related valuation allowance. The net impact of these adjustments did not have a material impact on tax expense or the balance sheet.

The TCJA was enacted on December 22, 2017 and the Company recorded provisional tax amounts in the fourth quarter of 2017 for the remeasurement of deferred tax balances, including valuation allowances related to the realization of deferred tax assets, and the one-time transition tax. The Company continues to analyze aspects of the TCJA, including potential impact to the provisional amounts recorded for the remeasurement of deferred tax balances and related valuation allowances, and the one-time transition tax. The Company did not record any adjustments to the 2017 provisional tax amounts in the second quarter of 2018.

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EQUITY

6 Months Ended

Jun. 30, 2018

Stockholders' Equity Note [Abstract]

EQUITY

EQUITY

During the three and six months ended June 30, 2018, 4.0 million and 7.7 million ordinary shares, respectively, were repurchased under the 2016 Program in the open market at a total cost of $300 and $600, respectively. 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.

The changes in Shareholders’ equity follow:

	Eaton shareholders’ equity			Noncontrolling interests			Total equity
Balance at December 31, 2017	$	17,253		$	37		$	17,290
Cumulative-effect adjustment upon adoption of ASU 2014-09	(2		)	—			(2		)
Cumulative-effect adjustment upon adoption of ASU 2016-16	(199		)	—			(199		)
Net income	1,098			—			1,098
Other comprehensive loss	(328		)	—			(328		)
Cash dividends paid	(578		)	(1		)	(579		)
Issuance of shares under equity-based compensation plans - net	46			—			46
Repurchase of shares	(600		)	—			(600		)
Changes in noncontrolling interest - net	—			(1		)	(1		)
Balance at June 30, 2018	$	16,690		$	35		$	16,725

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, 2017	$	(2,255	)	$	(1,139	)	$	(10	)	$	(3,404	)
Other comprehensive (loss) income    before reclassifications	(414		)	13			(2		)	(403		)
Amounts reclassified from Accumulated other    comprehensive loss	—			69			6			75
Net current-period Other comprehensive    (loss) income	(414		)	82			4			(328		)
Balance at June 30, 2018	$	(2,669	)	$	(1,057	)	$	(6	)	$	(3,732	)

The reclassifications out of Accumulated other comprehensive loss follow:

	Six months ended June 30, 2018				Consolidated statements of income classification
Amortization of defined benefit pensions and other postretirement benefits items
Actuarial loss and prior service cost	$	(86	)	1
Tax benefit	17
Total, net of tax	(69		)
Gains and (losses) on cash flow hedges
Currency exchange contracts	(8		)		Cost of products sold
Tax benefit	2
Total, net of tax	(6		)
Total reclassifications for the period	$	(75	)

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)	2018		2017		2018		2017
Net income attributable to Eaton ordinary shareholders	$	610	$	516	$	1,098	$	950
Weighted-average number of ordinary shares outstanding - diluted	437.3		448.6		439.5		449.8
Less dilutive effect of equity-based compensation	2.1		2.3		2.5		2.3
Weighted-average number of ordinary shares outstanding - basic	435.2		446.3		437.0		447.5
Net income per share attributable to Eaton ordinary shareholders
Diluted	$	1.39	$	1.15	$	2.50	$	2.11
Basic	1.40		1.16		2.51		2.12

For the second quarter and first six months of 2018, 0.6 million and 0.3 million stock options, respectively, were excluded from the calculation of diluted net income per share attributable to Eaton ordinary shareholders because the exercise price of the options exceeded the average market price of the ordinary shares during the period and their effect, accordingly, would have been antidilutive. 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.

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FAIR VALUE MEASUREMENTS

6 Months Ended

Jun. 30, 2018

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, 2018
Cash	$	256		$	256	$	—		$	—
Short-term investments	236			236		—			—
Net derivative contracts	(140		)	—		(140		)	—
December 31, 2017
Cash	$	561		$	561	$	—		$	—
Short-term investments	534			534		—			—
Net derivative contracts	36			—		36			—

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 $7,181 and fair value of $7,218 at June 30, 2018 compared to $7,745 and $8,048, respectively, at December 31, 2017. The fair value of Eaton's debt instruments were estimated using prevailing market interest rates on debt with similar creditworthiness, terms and maturities, and are considered a Level 2 fair value measurement.

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DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES

6 Months Ended

Jun. 30, 2018

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. The cash flows resulting from these financial instruments are classified in operating activities on the Condensed Consolidated Statements of Cash Flows.

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 $90 at June 30, 2018 and $88 at December 31, 2017, and designated on a pre-tax basis was $634 at June 30, 2018 and $652 at December 31, 2017.

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, 2018
Derivatives designated as hedges
Fixed-to-floating interest rate  swaps	$	2,550	$	—	$	18	$	1	$	51	Fair value	9 months to 16 years
Currency exchange contracts	950		13		5		18		4		Cash flow	1 to 36 months
Total			$	13	$	23	$	19	$	55
Derivatives not designated as  hedges
Currency exchange contracts	$	6,033	$	33			$	135				1 to 12 months
Commodity contracts	11		—				—					1 to 12 months
Total			$	33			$	135
December 31, 2017
Derivatives designated as hedges
Fixed-to-floating interest rate  swaps	$	2,965	$	1	$	41	$	—	$	17	Fair value	6 months to 17 years
Currency exchange contracts	924		7		7		22		2		Cash flow	1 to 36 months
Total			$	8	$	48	$	22	$	19
Derivatives not designated as  hedges
Currency exchange contracts	$	3,719	$	39			$	19				1 to 12 months
Commodity contracts	13		1				—					1 to 12 months
Total			$	40			$	19

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
	2018			2017				2018			2017
Derivatives designated as    cash flow hedges
Forward starting floating-to-fixed  interest rate swaps	$	—		$	(5	)	Interest expense - net	$	—		$	—
Currency exchange contracts	(15		)	2			Cost of products sold	(4		)	(1		)
Total	$	(15	)	$	(3	)		$	(4	)	$	(1	)
	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
	2018			2017				2018			2017
Derivatives designated as cash flow hedges
Forward starting floating-to-fixed interest rate swaps	$	—		$	(5	)	Interest expense - net	$	—		$	—
Currency exchange contracts	(2		)	1			Cost of products sold	(8		)	(5		)
Total	$	(2	)	$	(4	)		$	(8	)	$	(5	)

Amounts recognized in net income follow:

	Three months ended June 30						Six months ended June 30
	2018			2017			2018			2017
Derivatives designated as fair value hedges
Fixed-to-floating interest rate swaps	$	(16	)	$	8		$	(59	)	$	(3	)
Related long-term debt converted to floating interest    rates by interest rate swaps	16			(8		)	59			3
	$	—		$	—		$	—		$	—

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

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INVENTORY

6 Months Ended

Jun. 30, 2018

Inventory Disclosure [Abstract]

INVENTORY

INVENTORY

Inventory is carried at lower of cost or net realizable value. The components of inventory follow:

	June 30, 2018		December 31, 2017
Raw materials	$	1,065	$	953
Work-in-process	524		471
Finished goods	1,164		1,196
Total inventory	$	2,753	$	2,620

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BUSINESS SEGMENT INFORMATION

6 Months Ended

Jun. 30, 2018

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.

During the first quarter of 2018, Eaton re-segmented certain reportable operating segments due to a reorganization of the Company's businesses. The new reportable business segment is eMobility (which includes certain legacy Electrical Products and Vehicle product lines). 

The eMobility segment designs, manufactures, markets, and supplies electrical and electronic components and systems that improve the power management and performance of both on-road and off-road vehicles. Products include high voltage inverters, converters, fuses, onboard chargers, circuit protection units, vehicle controls, power distribution, fuel tank isolation valves, and commercial vehicle hybrid systems. The principal markets for the eMobility segment are original equipment manufacturers and aftermarket customers of passenger cars, commercial vehicles, and construction, agriculture, and mining equipment.

Eaton’s operating segments are Electrical Products, Electrical Systems and Services, Hydraulics, Aerospace, Vehicle, and eMobility. 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 2017 Form 10-K.

	Three months ended June 30						Six months ended June 30
	2018			2017			2018			2017
Net sales
Electrical Products	$	1,806		$	1,731		$	3,538		$	3,382
Electrical Systems and Services	1,513			1,414			2,894			2,747
Hydraulics	723			633			1,433			1,220
Aerospace	463			437			921			865
Vehicle	899			845			1,792			1,631
eMobility	83			72			160			135
Total net sales	$	5,487		$	5,132		$	10,738		$	9,980
Segment operating profit
Electrical Products	$	334		$	299		$	641		$	585
Electrical Systems and Services	227			194			394			349
Hydraulics	101			74			191			134
Aerospace	90			81			179			160
Vehicle	166			141			298			249
eMobility	14			13			25			24
Total segment operating profit	932			802			1,728			1,501
Corporate
Amortization of intangible assets	(96		)	(96		)	(194		)	(190		)
Interest expense - net	(68		)	(60		)	(138		)	(121		)
Pension and other postretirement benefits expense	1			(11		)	(1		)	(22		)
Other corporate expense - net	(75		)	(63		)	(136		)	(129		)
Income before income taxes	694			572			1,259			1,039
Income tax expense	83			55			161			88
Net income	611			517			1,098			951
Less net income for noncontrolling interests	(1		)	(1		)	—			(1		)
Net income attributable to Eaton ordinary shareholders	$	610		$	516		$	1,098		$	950

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CONDENSED CONSOLIDATING FINANCIAL STATEMENTS

6 Months Ended

Jun. 30, 2018

Condensed Consolidating Financial Information [Abstract]

CONDENSED CONSOLIDATING FINANCIAL STATEMENTS

CONDENSED CONSOLIDATING FINANCIAL STATEMENTS

The Registered Senior Notes issued by Eaton Corporation are registered under the Securities Act of 1933. Eaton and certain 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 Registered 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. See Note 6 of Eaton's 2017 Form 10-K for additional information related to the Registered Senior Notes.

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 2018 and 2017, 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. These restructurings have been reflected as of the beginning of the earliest period presented below.

CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME FOR THE THREE MONTHS ENDED JUNE 30, 2018
	Eaton Corporation plc			Eaton Corporation			Guarantors			Other subsidiaries			Consolidating adjustments			Total
Net sales	$	—		$	1,809		$	1,790		$	3,242		$	(1,354	)	$	5,487
Cost of products sold	—			1,427			1,289			2,312			(1,357		)	3,671
Selling and administrative expense	3			397			200			301			—			901
Research and development expense	—			37			35			73			—			145
Interest expense (income) - net	—			67			4			(6		)	3			68
Other expense (income) - net	(37		)	9			36			—			—			8
Equity in loss (earnings) of    subsidiaries, net of tax	(587		)	(209		)	(921		)	(658		)	2,375			—
Intercompany expense (income) - net	11			24			557			(592		)	—			—
Income (loss) before income taxes	610			57			590			1,812			(2,375		)	694
Income tax expense (benefit)	—			(7		)	(14		)	104			—			83
Net income (loss)	610			64			604			1,708			(2,375		)	611
Less net loss (income) for    noncontrolling interests	—			—			—			(1		)	—			(1		)
Net income (loss) attributable to    Eaton ordinary shareholders	$	610		$	64		$	604		$	1,707		$	(2,375	)	$	610
Other comprehensive income (loss)	$	(624	)	$	(63	)	$	(608	)	$	(1,390	)	$	2,061		$	(624	)
Total comprehensive income   (loss) attributable to Eaton   ordinary shareholders	$	(14	)	$	1		$	(4	)	$	317		$	(314	)	$	(14	)

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		$	1,727		$	3,109		$	(1,400	)	$	5,132
Cost of products sold	—			1,371			1,263			2,210			(1,396		)	3,448
Selling and administrative expense	4			361			200			326			—			891
Research and development expense	—			47			46			57			—			150
Interest expense (income) - net	—			60			6			(7		)	1			60
Other expense (income) - net	41			17			(38		)	(9		)	—			11
Equity in loss (earnings) of    subsidiaries, net of tax	(705		)	(167		)	(861		)	(747		)	2,480			—
Intercompany expense (income) - net	144			(45		)	352			(451		)	—			—
Income (loss) before income taxes	516			52			759			1,730			(2,485		)	572
Income tax expense (benefit)	—			3			3			52			(3		)	55
Net income (loss)	516			49			756			1,678			(2,482		)	517
Less net loss (income) for    noncontrolling interests	—			—			—			(1		)	—			(1		)
Net income (loss) attributable to    Eaton ordinary shareholders	$	516		$	49		$	756		$	1,677		$	(2,482	)	$	516
Other comprehensive income (loss)	$	323		$	17		$	321		$	714		$	(1,052	)	$	323
Total comprehensive income    (loss) attributable to Eaton    ordinary shareholders	$	839		$	66		$	1,077		$	2,391		$	(3,534	)	$	839

CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME FOR THE SIX MONTHS ENDED JUNE 30, 2018
	Eaton Corporation plc			Eaton Corporation			Guarantors			Other subsidiaries			Consolidating adjustments			Total
Net sales	$	—		$	3,498		$	3,490		$	6,433		$	(2,683	)	$	10,738
Cost of products sold	—			2,779			2,525			4,622			(2,682		)	7,244
Selling and administrative expense	6			738			378			668			—			1,790
Research and development expense	—			76			76			149			—			301
Interest expense (income) - net	—			135			8			(7		)	2			138
Other expense (income) - net	(19		)	14			27			(16		)	—			6
Equity in loss (earnings) of    subsidiaries, net of tax	(1,101		)	(472		)	(1,737		)	(1,316		)	4,626			—
Intercompany expense (income) - net	16			2			1,044			(1,062		)	—			—
Income (loss) before income taxes	1,098			226			1,169			3,395			(4,629		)	1,259
Income tax expense (benefit)	—			(13		)	(28		)	203			(1		)	161
Net income (loss)	1,098			239			1,197			3,192			(4,628		)	1,098
Less net loss (income) for    noncontrolling interests	—			—			—			—			—			—
Net income (loss) attributable to    Eaton ordinary shareholders	$	1,098		$	239		$	1,197		$	3,192		$	(4,628	)	$	1,098
Other comprehensive income (loss)	$	(328	)	$	(29	)	$	(312	)	$	(777	)	$	1,118		$	(328	)
Total comprehensive income    (loss) attributable to Eaton    ordinary shareholders	$	770		$	210		$	885		$	2,415		$	(3,510	)	$	770

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		$	3,383		$	6,039		$	(2,710	)	$	9,980
Cost of products sold	—			2,622			2,491			4,350			(2,708		)	6,755
Selling and administrative expense	6			709			398			654			—			1,767
Research and development expense	—			94			88			111			—			293
Interest expense (income) - net	—			123			11			(13		)	—			121
Other expense (income) - net	48			27			(37		)	(33		)	—			5
Equity in loss (earnings) of    subsidiaries, net of tax	(1,288		)	(314		)	(1,643		)	(1,400		)	4,645			—
Intercompany expense (income) - net	284			(99		)	697			(882		)	—			—
Income (loss) before income taxes	950			106			1,378			3,252			(4,647		)	1,039
Income tax expense (benefit)	—			—			19			70			(1		)	88
Net income (loss)	950			106			1,359			3,182			(4,646		)	951
Less net loss (income) for    noncontrolling interests	—			—			—			(2		)	1			(1		)
Net income (loss) attributable to    Eaton ordinary shareholders	$	950		$	106		$	1,359		$	3,180		$	(4,645	)	$	950
Other comprehensive income (loss)	$	586		$	80		$	583		$	1,229		$	(1,892	)	$	586
Total comprehensive income (loss) attributable to Eaton ordinary shareholders	$	1,536		$	186		$	1,942		$	4,409		$	(6,537	)	$	1,536

CONDENSED CONSOLIDATING BALANCE SHEETS JUNE 30, 2018
	Eaton Corporation plc		Eaton Corporation		Guarantors			Other subsidiaries		Consolidating adjustments			Total
Assets
Current assets
Cash	$	—	$	5	$	10		$	241	$	—		$	256
Short-term investments	—		—		—			236		—			236
Accounts receivable - net	—		505		1,451			2,136		—			4,092
Intercompany accounts    receivable	1		1,643		1,838			3,168		(6,650		)	—
Inventory	—		530		772			1,535		(84		)	2,753
Prepaid expenses and    other current assets	—		131		98			332		15			576
Total current assets	1		2,814		4,169			7,648		(6,719		)	7,913
Property, plant and    equipment - net	—		844		689			1,929		—			3,462
Other noncurrent assets
Goodwill	—		1,317		6,705			5,405		—			13,427
Other intangible assets	—		133		3,129			1,788		—			5,050
Deferred income taxes	—		357		18			254		(333		)	296
Investment in subsidiaries	15,641		9,546		55,296			24,151		(104,634		)	—
Intercompany loans receivable	3,121		4,235		5,992			64,680		(78,028		)	—
Other assets	—		729		167			821		—			1,717
Total assets	$	18,763	$	19,975	$	76,165		$	106,676	$	(189,714	)	$	31,865
Liabilities and    shareholders’ equity
Current liabilities
Short-term debt	$	—	$	481	$	—		$	23	$	—		$	504
Current portion of    long-term debt	—		428		—			—		—			428
Accounts payable	—		474		437			1,281		—			2,192
Intercompany accounts payable	17		1,494		3,478			1,661		(6,650		)	—
Accrued compensation	—		79		46			228		—			353
Other current liabilities	2		506		226			1,179		(3		)	1,910
Total current liabilities	19		3,462		4,187			4,372		(6,653		)	5,387
Noncurrent liabilities
Long-term debt	—		5,784		957			8		4			6,753
Pension liabilities	—		329		88			757		—			1,174
Other postretirement    benefits liabilities	—		189		93			72		—			354
Deferred income taxes	—		1		589			229		(333		)	486
Intercompany loans payable	2,054		4,621		70,443			910		(78,028		)	—
Other noncurrent liabilities	—		345		265			376		—			986
Total noncurrent liabilities	2,054		11,269		72,435			2,352		(78,357		)	9,753
Shareholders’ equity
Eaton shareholders' equity	16,690		5,244		(457		)	99,917		(104,704		)	16,690
Noncontrolling interests	—		—		—			35		—			35
Total equity	16,690		5,244		(457		)	99,952		(104,704		)	16,725
Total liabilities and equity	$	18,763	$	19,975	$	76,165		$	106,676	$	(189,714	)	$	31,865

CONDENSED CONSOLIDATING BALANCE SHEETS DECEMBER 31, 2017
	Eaton Corporation plc		Eaton Corporation		Guarantors		Other subsidiaries		Consolidating adjustments			Total
Assets
Current assets
Cash	$	—	$	183	$	18	$	360	$	—		$	561
Short-term investments	—		—		—		534		—			534
Accounts receivable - net	—		482		1,376		2,085		—			3,943
Intercompany accounts    receivable	8		2,865		5,155		2,716		(10,744		)	—
Inventory	—		473		737		1,493		(83		)	2,620
Prepaid expenses and    other current assets	—		229		145		277		28			679
Total current assets	8		4,232		7,431		7,465		(10,799		)	8,337
Property, plant and    equipment - net	—		859		702		1,941		—			3,502
Other noncurrent assets
Goodwill	—		1,316		6,705		5,547		—			13,568
Other intangible assets	—		138		3,206		1,921		—			5,265
Deferred income taxes	—		356		6		215		(324		)	253
Investment in subsidiaries	15,045		9,445		75,404		39,848		(139,742		)	—
Intercompany loans receivable	3,122		7,105		2,909		61,427		(74,563		)	—
Other assets	—		748		166		784		—			1,698
Total assets	$	18,175	$	24,199	$	96,529	$	119,148	$	(225,428	)	$	32,623
Liabilities and    shareholders’ equity
Current liabilities
Short-term debt	$	—	$	—	$	—	$	6	$	—		$	6
Current portion of    long-term debt	—		542		35		1		—			578
Accounts payable	—		549		330		1,287		—			2,166
Intercompany accounts payable	4		4,917		4,418		1,405		(10,744		)	—
Accrued compensation	—		128		65		260		—			453
Other current liabilities	1		566		317		989		(1		)	1,872
Total current liabilities	5		6,702		5,165		3,948		(10,745		)	5,075
Noncurrent liabilities
Long-term debt	—		6,180		976		9		2			7,167
Pension liabilities	—		341		89		796		—			1,226
Other postretirement    benefits liabilities	—		192		96		74		—			362
Deferred income taxes	—		—		607		255		(324		)	538
Intercompany loans payable	917		3,808		68,685		1,153		(74,563		)	—
Other noncurrent liabilities	—		314		273		378		—			965
Total noncurrent liabilities	917		10,835		70,726		2,665		(74,885		)	10,258
Shareholders’ equity
Eaton shareholders' equity	17,253		6,662		20,638		112,498		(139,798		)	17,253
Noncontrolling interests	—		—		—		37		—			37
Total equity	17,253		6,662		20,638		112,535		(139,798		)	17,290
Total liabilities and equity	$	18,175	$	24,199	$	96,529	$	119,148	$	(225,428	)	$	32,623

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS FOR THE SIX MONTHS ENDED JUNE 30, 2018
	Eaton Corporation plc			Eaton Corporation			Guarantors			Other subsidiaries			Consolidating adjustments			Total
Net cash provided by (used in)    operating activities	$	—		$	(125	)	$	103		$	944		$	(84	)	$	838
Investing activities
Capital expenditures for property,    plant and equipment	—			(48		)	(51		)	(181		)	—			(280		)
Sales (purchases) of short-term investments - net	—			—			—			284			—			284
Investments in affiliates	—			(36		)	—			—			36			—
Loans to affiliates	—			(100		)	(85		)	(3,563		)	3,748			—
Repayments of loans from affiliates	—			507			886			3,110			(4,503		)	—
Other - net	—			(23		)	1			(19		)	—			(41		)
Net cash provided by (used in) investing activities	—			300			751			(369		)	(719		)	(37		)
Financing activities
Proceeds from borrowings	—			481			—			19			—			500
Payments on borrowings	—			(450		)	(35		)	(1		)	—			(486		)
Proceeds from borrowings from    affiliates	2,383			1,215			50			100			(3,748		)	—
Payments on borrowings from    affiliates	(1,226		)	(1,994		)	(524		)	(759		)	4,503			—
Capital contributions from affiliates	—			—			—			36			(36		)	—
Other intercompany financing    activities	—			411			(348		)	(63		)	—			—
Cash dividends paid	(578		)	—			—			—			—			(578		)
Cash dividends paid to affiliates	—			—			—			(84		)	84			—
Exercise of employee stock options	21			—			—			—			—			21
Repurchase of shares	(600		)	—			—			—			—			(600		)
Employee taxes paid from shares withheld	—			(15		)	(5		)	(3		)	—			(23		)
Other - net	—			(1		)	—			(1		)	—			(2		)
Net cash provided by (used in)    financing activities	—			(353		)	(862		)	(756		)	803			(1,168		)
Effect of currency on cash	—			—			—			62			—			62
Total increase (decrease) in cash	—			(178		)	(8		)	(119		)	—			(305		)
Cash at the beginning of the period	—			183			18			360			—			561
Cash at the end of the period	$	—		$	5		$	10		$	241		$	—		$	256

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		$	(12	)	$	969		$	1,014		$	(1,507	)	$	1,037
Investing activities
Capital expenditures for property,    plant and equipment	—			(45		)	(56		)	(145		)	—			(246		)
Sales (purchases) of short-term investments - net	—			—			—			(309		)	—			(309		)
Investments in affiliates	(90		)	(29		)	—			(90		)	209			—
Return of investments in affiliates	—			—			20			—			(20		)	—
Loans to affiliates	—			(17		)	(283		)	(3,570		)	3,870			—
Repayments of loans from affiliates	—			291			287			3,035			(3,613		)	—
Other - net	—			(26		)	(84		)	79			—			(31		)
Net cash provided by (used in)    investing activities	(90		)	174			(116		)	(1,000		)	446			(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			119			(209		)	—
Return of capital to affiliates	—			—			—			(20		)	20			—
Other intercompany financing activities	—			(288		)	(196		)	484			—			—
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		)	(234		)	(859		)	(173		)	1,061			(689		)
Effect of currency on cash	—			—			—			7			—			7
Total increase (decrease) in cash	(1		)	(72		)	(6		)	(152		)	—			(231		)
Cash at the beginning of the period	1			92			12			438			—			543
Cash at the end of the period	$	—		$	20		$	6		$	286		$	—		$	312

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BASIS OF PRESENTATION (Policies)

6 Months Ended

Jun. 30, 2018

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 2017 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 2018, Eaton re-segmented certain reportable operating segments due to a reorganization of the Company's businesses. The new reportable business segment is eMobility (which includes certain legacy Electrical Products and Vehicle product lines). See Note 13 for additional information related to these segments.

Reclassifications

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

Revenue Recognition, Policy

Revenue Recognition

Sales are recognized when control of promised goods or services are transferred to customers in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. Control is transferred when the customer has the ability to direct the use of and obtain benefits from the goods or services. The majority of the Company’s sales agreements contain performance obligations satisfied at a point in time when control is transferred to the customer. Sales recognized over time are generally accounted for using an input measure to determine progress completed at the end of the period. Sales for service contracts generally are recognized as the services are provided. For agreements with multiple performance obligations, judgment is required to determine whether performance obligations specified in these agreements are distinct and should be accounted for as separate revenue transactions for recognition purposes. In these types of agreements, we generally allocate sales price to each distinct obligation based on the price of each item sold in separate transactions.

Payment terms vary by the type and location of the customer and the products or services offered. Generally, the time between when revenue is recognized and payment is due is not significant. Eaton does not evaluate whether the selling price includes a financing interest component for contracts that are less than a year. Sales, value added, and other taxes collected concurrent with revenue are excluded from sales. Shipping and handling costs are treated as fulfillment costs and are included in Cost of products sold.

Eaton records reductions to sales for returns, and customer and distributor incentives, primarily comprised of rebates, at the time of the initial sale. Rebates are estimated based on sales terms, historical experience, trend analysis, and projected market conditions in the various markets served. The rebate programs offered vary across businesses due to the numerous markets Eaton serves, but the most common incentives relate to amounts paid or credited to customers for achieving defined volume levels. Returns are estimated at the time of the sale primarily based on historical experience and recorded gross on the Consolidated Balance Sheet. See Note 3 for additional information.

Adoption of ASU 2014-09

Adoption of New Accounting Standards

Eaton adopted Accounting Standard Update 2014-09, Revenue from Contracts with Customers, at the start of the first quarter of 2018 using the modified retrospective approach and recorded a cumulative effect adjustment to retained earnings based on the current terms and conditions for open contracts as of January 1, 2018. The adoption of the standard did not have a material impact on the Company’s Consolidated financial statements. The comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods.

Consolidated Balance Sheet		Balance at December 31, 2017		Adjustments due to ASU 2014-09			Balance at January 1, 2018
Assets
	Accounts receivable - net	$	3,943	$	(99	)	$	3,844
	Prepaid expenses and other current assets	679		129			808
	Deferred income taxes	253		1			254
Liabilities and shareholders' equity
	Other current liabilities	$	1,872	$	33		$	1,905
	Eaton shareholders' equity	17,253		(2		)	17,251

Adoption of ASU 2016-16

Eaton adopted Accounting Standards Update 2016-16, Intra-Entity Transfers of Assets Other Than Inventory (ASU 2016-16), at the start of the first quarter of 2018. This accounting standard requires companies to recognize the income tax effects of intercompany sales and transfers of assets other than inventory in the period in which the transfer occurs. The previous accounting standard required companies to defer the income tax effects of intercompany transfers of assets by recording a prepaid tax, until such assets were sold to an outside party or otherwise recognized. ASU 2016-16 requires companies to write off any income tax amounts that had been deferred as prepaid taxes from past intercompany transactions, and record deferred tax balances for amounts that have not been recognized, through a cumulative-effect adjustment to retained earnings. Upon adoption, the Company recorded a cumulative-effect adjustment of $199 to reduce retained earnings.

Adoption of ASU 2017-07

Eaton adopted Accounting Standards Update 2017-07, Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost (ASU 2017-07), at the start of the first quarter of 2018. The new standard requires companies to present service costs consistent with other employee compensation costs on the income statement and separate from all other elements of pension costs. The retrospective adoption of this standard resulted in an increase in selling and administrative expense with a corresponding decrease in Other expense - net of $1 for the six months ended June 30, 2018, and a reduction in selling and administrative expense with a corresponding increase in Other expense - net of $20 for the six months ended June 30, 2017.

Recently Issued Accounting Pronouncements

Recently Issued Accounting Pronouncement

In February 2016, the FASB issued Accounting Standards Update 2016-02, Leases (Topic 842), (ASU 2016-02). This accounting standard requires that a lessee recognize a lease asset and a lease liability on its balance sheet for all leases, including operating leases, with a term greater than 12 months. ASU 2016-02 will require additional disclosures in the notes to the consolidated financial statements and is effective for annual and interim reporting periods beginning after December 15, 2018. A project team has been formed to evaluate and implement the new standard. The project team is working to gather the data required to account for leases under the new standard, and validating the functionality of third-party lease accounting software. In addition, the Company is in the process of identifying and implementing the appropriate changes to business processes and controls to support recognition and disclosure under the new standard. Eaton plans to adopt the standard as of the first quarter of 2019. 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.

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BASIS OF PRESENTATION (Tables)

6 Months Ended

Jun. 30, 2018

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule of the Impact of Adoption of ASU 2014-09

Consolidated Balance Sheet		Balance at December 31, 2017		Adjustments due to ASU 2014-09			Balance at January 1, 2018
Assets
	Accounts receivable - net	$	3,943	$	(99	)	$	3,844
	Prepaid expenses and other current assets	679		129			808
	Deferred income taxes	253		1			254
Liabilities and shareholders' equity
	Other current liabilities	$	1,872	$	33		$	1,905
	Eaton shareholders' equity	17,253		(2		)	17,251

In accordance with the new revenue accounting requirements, the impact of the adoption on the financial statement line items within the accompanying financial statements was as follows:

	Three months ended June 30, 2018
Consolidated Statements of Income	As Reported		Adjustment			Balances without Adoption of ASC 606
Net sales	$	5,487	$	(11	)	$	5,476
Cost of products sold	3,671		(6		)	3,665
Income before income taxes	694		(5		)	689
Income tax expense	83		(1		)	82
Net income	611		(4		)	607
Net income attributable to Eaton ordinary shareholders	$	610	$	(4	)	$	606

	Six months ended June 30, 2018
Consolidated Statements of Income	As Reported		Adjustment			Balances without Adoption of ASC 606
Net sales	$	10,738	$	(18	)	$	10,720
Cost of products sold	7,244		(10		)	7,234
Income before income taxes	1,259		(8		)	1,251
Income tax expense	161		(2		)	159
Net income	1,098		(6		)	1,092
Net income attributable to Eaton ordinary shareholders	$	1,098	$	(6	)	$	1,092

	June 30, 2018
Condensed Consolidated Balance Sheets	As Reported		Adjustment			Balances without Adoption of ASC 606
Assets
Accounts receivable - net	$	4,092	$	121		$	4,213
Inventory	2,753		9			2,762
Prepaid expenses and other current assets	576		(164		)	412
Deferred income taxes	296		(1		)	295
Liabilities and shareholders’ equity
Other current liabilities	$	1,910	$	(31	)	$	1,879
Eaton shareholders' equity	$	16,725	$	(4	)	$	16,721

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ACQUISITION INTEGRATION CHARGES (Tables)

6 Months Ended

Jun. 30, 2018

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
	2018		2017		2018		2017
Electrical Products	$	—	$	1	$	—	$	2
Total acquisition integration charges before income taxes	—		1		—		2
Income taxes	—		1		—		1
Total after income taxes	$	—	$	—	$	—	$	1
Per ordinary share - diluted	$	—	$	—	$	—	$	—

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REVENUE RECOGNITION (Tables)

6 Months Ended

Jun. 30, 2018

Disaggregation of Revenue [Line Items]

Schedule of Disaggregation of Sales

	Three months ended June 30, 2018
Net sales	United States		Rest of World		Total
Electrical Products	$	1,033	$	773	$	1,806
Electrical Systems and Services	983		530		1,513
Hydraulics	309		414		723
	Original Equipment Manufacturers		Aftermarket, Distribution and End User
Aerospace	$	266	$	197	463
	Commercial		Passenger and Light Duty
Vehicle	$	452	$	447	899
eMobility					83
Total					$	5,487

	Six months ended June 30, 2018
Net sales	United States		Rest of World		Total
Electrical Products	$	1,993	$	1,545	$	3,538
Electrical Systems and Services	1,877		1,017		2,894
Hydraulics	606		827		1,433
	Original Equipment Manufacturers		Aftermarket, Distribution and End User
Aerospace	$	530	$	391	921
	Commercial		Passenger and Light Duty
Vehicle	$	882	$	910	1,792
eMobility					160
Total					$	10,738

Schedule of Changes in Deferred Revenue Liabilities

Changes in the deferred revenue liabilities are as follows:

	Deferred Revenue
Balance at January 1, 2018	$	227
Customer deposits and billings	463
Revenue recognized in the period	(443		)
Translation	(3		)
Balance at June 30, 2018	$	244

Schedule of the Impact of Adoption of ASU 2014-09

Consolidated Balance Sheet		Balance at December 31, 2017		Adjustments due to ASU 2014-09			Balance at January 1, 2018
Assets
	Accounts receivable - net	$	3,943	$	(99	)	$	3,844
	Prepaid expenses and other current assets	679		129			808
	Deferred income taxes	253		1			254
Liabilities and shareholders' equity
	Other current liabilities	$	1,872	$	33		$	1,905
	Eaton shareholders' equity	17,253		(2		)	17,251

In accordance with the new revenue accounting requirements, the impact of the adoption on the financial statement line items within the accompanying financial statements was as follows:

	Three months ended June 30, 2018
Consolidated Statements of Income	As Reported		Adjustment			Balances without Adoption of ASC 606
Net sales	$	5,487	$	(11	)	$	5,476
Cost of products sold	3,671		(6		)	3,665
Income before income taxes	694		(5		)	689
Income tax expense	83		(1		)	82
Net income	611		(4		)	607
Net income attributable to Eaton ordinary shareholders	$	610	$	(4	)	$	606

	Six months ended June 30, 2018
Consolidated Statements of Income	As Reported		Adjustment			Balances without Adoption of ASC 606
Net sales	$	10,738	$	(18	)	$	10,720
Cost of products sold	7,244		(10		)	7,234
Income before income taxes	1,259		(8		)	1,251
Income tax expense	161		(2		)	159
Net income	1,098		(6		)	1,092
Net income attributable to Eaton ordinary shareholders	$	1,098	$	(6	)	$	1,092

	June 30, 2018
Condensed Consolidated Balance Sheets	As Reported		Adjustment			Balances without Adoption of ASC 606
Assets
Accounts receivable - net	$	4,092	$	121		$	4,213
Inventory	2,753		9			2,762
Prepaid expenses and other current assets	576		(164		)	412
Deferred income taxes	296		(1		)	295
Liabilities and shareholders’ equity
Other current liabilities	$	1,910	$	(31	)	$	1,879
Eaton shareholders' equity	$	16,725	$	(4	)	$	16,721

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RESTRUCTURING CHARGES (Tables)

6 Months Ended

Jun. 30, 2018

Restructuring and Related Activities [Abstract]

Restructuring Liability Rollforward

A summary of liabilities related to workforce reductions, plant closings and other associated costs announced as part of this program follows:

	Workforce reductions			Plant closings and other			Total
Balance at December 31, 2016	$	113		$	1		$	114
Liability recognized	57			59			116
Payments	(102		)	(39		)	(141		)
Other adjustments	(1		)	(16		)	(17		)
Balance at December 31, 2017	67			5			72
Payments	(25		)	(4		)	(29		)
Other adjustments	(10		)	—			(10		)
Balance at June 30, 2018	$	32		$	1		$	33

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GOODWILL (Tables)

6 Months Ended

Jun. 30, 2018

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Goodwill

Change in the carrying amount of goodwill by segment follows:

	December 31, 2017		Translation			June 30, 2018
Electrical Products	$	6,678	$	(71	)	$	6,607
Electrical Systems and Services	4,311		(36		)	4,275
Hydraulics	1,257		(29		)	1,228
Aerospace	947		(3		)	944
Vehicle	294		(2		)	292
eMobility	81		—			81
Total	$	13,568	$	(141	)	$	13,427

Eaton re-segmented certain reportable operating segments due to a reorganization of the Company's businesses. The new reportable business segment is eMobility (which includes certain legacy Electrical Products and Vehicle product lines). The Company used the relative fair value method to reallocate goodwill to the associated reporting units.

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RETIREMENT BENEFIT PLANS (Tables)

6 Months Ended

Jun. 30, 2018

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
	2018			2017			2018			2017			2018			2017
Service cost	$	25		$	24		$	16		$	18		$	—		$	—
Interest cost	31			31			13			14			4			4
Expected return on plan assets	(64		)	(61		)	(26		)	(23		)	(1		)	(1		)
Amortization	23			21			10			12			(3		)	(3		)
	15			15			13			21			—			—
Settlements	11			17			—			—			—			—
Total expense	$	26		$	32		$	13		$	21		$	—		$	—
	United States pension benefit expense						Non-United States pension benefit expense						Other postretirement benefits expense
	Six months ended June 30
	2018			2017			2018			2017			2018			2017
Service cost	$	50		$	48		$	32		$	35		$	1		$	1
Interest cost	61			62			27			27			7			7
Expected return on plan assets	(127		)	(122		)	(53		)	(46		)	(2		)	(2		)
Amortization	47			41			20			25			(6		)	(6		)
	31			29			26			41			—			—
Settlements	25			34			—			—			—			—
Total expense	$	56		$	63		$	26		$	41		$	—		$	—

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EQUITY (Tables)

6 Months Ended

Jun. 30, 2018

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, 2017	$	17,253		$	37		$	17,290
Cumulative-effect adjustment upon adoption of ASU 2014-09	(2		)	—			(2		)
Cumulative-effect adjustment upon adoption of ASU 2016-16	(199		)	—			(199		)
Net income	1,098			—			1,098
Other comprehensive loss	(328		)	—			(328		)
Cash dividends paid	(578		)	(1		)	(579		)
Issuance of shares under equity-based compensation plans - net	46			—			46
Repurchase of shares	(600		)	—			(600		)
Changes in noncontrolling interest - net	—			(1		)	(1		)
Balance at June 30, 2018	$	16,690		$	35		$	16,725

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, 2017	$	(2,255	)	$	(1,139	)	$	(10	)	$	(3,404	)
Other comprehensive (loss) income    before reclassifications	(414		)	13			(2		)	(403		)
Amounts reclassified from Accumulated other    comprehensive loss	—			69			6			75
Net current-period Other comprehensive    (loss) income	(414		)	82			4			(328		)
Balance at June 30, 2018	$	(2,669	)	$	(1,057	)	$	(6	)	$	(3,732	)

Reclassification Out of Accumulated Other Comprehensive Loss

The reclassifications out of Accumulated other comprehensive loss follow:

	Six months ended June 30, 2018				Consolidated statements of income classification
Amortization of defined benefit pensions and other postretirement benefits items
Actuarial loss and prior service cost	$	(86	)	1
Tax benefit	17
Total, net of tax	(69		)
Gains and (losses) on cash flow hedges
Currency exchange contracts	(8		)		Cost of products sold
Tax benefit	2
Total, net of tax	(6		)
Total reclassifications for the period	$	(75	)

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)	2018		2017		2018		2017
Net income attributable to Eaton ordinary shareholders	$	610	$	516	$	1,098	$	950
Weighted-average number of ordinary shares outstanding - diluted	437.3		448.6		439.5		449.8
Less dilutive effect of equity-based compensation	2.1		2.3		2.5		2.3
Weighted-average number of ordinary shares outstanding - basic	435.2		446.3		437.0		447.5
Net income per share attributable to Eaton ordinary shareholders
Diluted	$	1.39	$	1.15	$	2.50	$	2.11
Basic	1.40		1.16		2.51		2.12

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FAIR VALUE MEASUREMENTS (Tables)

6 Months Ended

Jun. 30, 2018

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, 2018
Cash	$	256		$	256	$	—		$	—
Short-term investments	236			236		—			—
Net derivative contracts	(140		)	—		(140		)	—
December 31, 2017
Cash	$	561		$	561	$	—		$	—
Short-term investments	534			534		—			—
Net derivative contracts	36			—		36			—

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DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES (Tables)

6 Months Ended

Jun. 30, 2018

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, 2018
Derivatives designated as hedges
Fixed-to-floating interest rate  swaps	$	2,550	$	—	$	18	$	1	$	51	Fair value	9 months to 16 years
Currency exchange contracts	950		13		5		18		4		Cash flow	1 to 36 months
Total			$	13	$	23	$	19	$	55
Derivatives not designated as  hedges
Currency exchange contracts	$	6,033	$	33			$	135				1 to 12 months
Commodity contracts	11		—				—					1 to 12 months
Total			$	33			$	135
December 31, 2017
Derivatives designated as hedges
Fixed-to-floating interest rate  swaps	$	2,965	$	1	$	41	$	—	$	17	Fair value	6 months to 17 years
Currency exchange contracts	924		7		7		22		2		Cash flow	1 to 36 months
Total			$	8	$	48	$	22	$	19
Derivatives not designated as  hedges
Currency exchange contracts	$	3,719	$	39			$	19				1 to 12 months
Commodity contracts	13		1				—					1 to 12 months
Total			$	40			$	19

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
	2018			2017				2018			2017
Derivatives designated as    cash flow hedges
Forward starting floating-to-fixed  interest rate swaps	$	—		$	(5	)	Interest expense - net	$	—		$	—
Currency exchange contracts	(15		)	2			Cost of products sold	(4		)	(1		)
Total	$	(15	)	$	(3	)		$	(4	)	$	(1	)
	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
	2018			2017				2018			2017
Derivatives designated as cash flow hedges
Forward starting floating-to-fixed interest rate swaps	$	—		$	(5	)	Interest expense - net	$	—		$	—
Currency exchange contracts	(2		)	1			Cost of products sold	(8		)	(5		)
Total	$	(2	)	$	(4	)		$	(8	)	$	(5	)

Amounts recognized in Net Income

Amounts recognized in net income follow:

	Three months ended June 30						Six months ended June 30
	2018			2017			2018			2017
Derivatives designated as fair value hedges
Fixed-to-floating interest rate swaps	$	(16	)	$	8		$	(59	)	$	(3	)
Related long-term debt converted to floating interest    rates by interest rate swaps	16			(8		)	59			3
	$	—		$	—		$	—		$	—

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INVENTORY (Tables)

6 Months Ended

Jun. 30, 2018

Inventory Disclosure [Abstract]

Components of Inventory

The components of inventory follow:

	June 30, 2018		December 31, 2017
Raw materials	$	1,065	$	953
Work-in-process	524		471
Finished goods	1,164		1,196
Total inventory	$	2,753	$	2,620

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BUSINESS SEGMENT INFORMATION (Tables)

6 Months Ended

Jun. 30, 2018

Segment Reporting [Abstract]

Business Segment Information

	Three months ended June 30						Six months ended June 30
	2018			2017			2018			2017
Net sales
Electrical Products	$	1,806		$	1,731		$	3,538		$	3,382
Electrical Systems and Services	1,513			1,414			2,894			2,747
Hydraulics	723			633			1,433			1,220
Aerospace	463			437			921			865
Vehicle	899			845			1,792			1,631
eMobility	83			72			160			135
Total net sales	$	5,487		$	5,132		$	10,738		$	9,980
Segment operating profit
Electrical Products	$	334		$	299		$	641		$	585
Electrical Systems and Services	227			194			394			349
Hydraulics	101			74			191			134
Aerospace	90			81			179			160
Vehicle	166			141			298			249
eMobility	14			13			25			24
Total segment operating profit	932			802			1,728			1,501
Corporate
Amortization of intangible assets	(96		)	(96		)	(194		)	(190		)
Interest expense - net	(68		)	(60		)	(138		)	(121		)
Pension and other postretirement benefits expense	1			(11		)	(1		)	(22		)
Other corporate expense - net	(75		)	(63		)	(136		)	(129		)
Income before income taxes	694			572			1,259			1,039
Income tax expense	83			55			161			88
Net income	611			517			1,098			951
Less net income for noncontrolling interests	(1		)	(1		)	—			(1		)
Net income attributable to Eaton ordinary shareholders	$	610		$	516		$	1,098		$	950

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CONDENSED CONSOLIDATING FINANCIAL STATEMENTS (Tables)

6 Months Ended

Jun. 30, 2018

Condensed Consolidating Financial Information [Abstract]

Condensed Consolidating Financial Statements

CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME FOR THE THREE MONTHS ENDED JUNE 30, 2018
	Eaton Corporation plc			Eaton Corporation			Guarantors			Other subsidiaries			Consolidating adjustments			Total
Net sales	$	—		$	1,809		$	1,790		$	3,242		$	(1,354	)	$	5,487
Cost of products sold	—			1,427			1,289			2,312			(1,357		)	3,671
Selling and administrative expense	3			397			200			301			—			901
Research and development expense	—			37			35			73			—			145
Interest expense (income) - net	—			67			4			(6		)	3			68
Other expense (income) - net	(37		)	9			36			—			—			8
Equity in loss (earnings) of    subsidiaries, net of tax	(587		)	(209		)	(921		)	(658		)	2,375			—
Intercompany expense (income) - net	11			24			557			(592		)	—			—
Income (loss) before income taxes	610			57			590			1,812			(2,375		)	694
Income tax expense (benefit)	—			(7		)	(14		)	104			—			83
Net income (loss)	610			64			604			1,708			(2,375		)	611
Less net loss (income) for    noncontrolling interests	—			—			—			(1		)	—			(1		)
Net income (loss) attributable to    Eaton ordinary shareholders	$	610		$	64		$	604		$	1,707		$	(2,375	)	$	610
Other comprehensive income (loss)	$	(624	)	$	(63	)	$	(608	)	$	(1,390	)	$	2,061		$	(624	)
Total comprehensive income   (loss) attributable to Eaton   ordinary shareholders	$	(14	)	$	1		$	(4	)	$	317		$	(314	)	$	(14	)

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		$	1,727		$	3,109		$	(1,400	)	$	5,132
Cost of products sold	—			1,371			1,263			2,210			(1,396		)	3,448
Selling and administrative expense	4			361			200			326			—			891
Research and development expense	—			47			46			57			—			150
Interest expense (income) - net	—			60			6			(7		)	1			60
Other expense (income) - net	41			17			(38		)	(9		)	—			11
Equity in loss (earnings) of    subsidiaries, net of tax	(705		)	(167		)	(861		)	(747		)	2,480			—
Intercompany expense (income) - net	144			(45		)	352			(451		)	—			—
Income (loss) before income taxes	516			52			759			1,730			(2,485		)	572
Income tax expense (benefit)	—			3			3			52			(3		)	55
Net income (loss)	516			49			756			1,678			(2,482		)	517
Less net loss (income) for    noncontrolling interests	—			—			—			(1		)	—			(1		)
Net income (loss) attributable to    Eaton ordinary shareholders	$	516		$	49		$	756		$	1,677		$	(2,482	)	$	516
Other comprehensive income (loss)	$	323		$	17		$	321		$	714		$	(1,052	)	$	323
Total comprehensive income    (loss) attributable to Eaton    ordinary shareholders	$	839		$	66		$	1,077		$	2,391		$	(3,534	)	$	839

CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME FOR THE SIX MONTHS ENDED JUNE 30, 2018
	Eaton Corporation plc			Eaton Corporation			Guarantors			Other subsidiaries			Consolidating adjustments			Total
Net sales	$	—		$	3,498		$	3,490		$	6,433		$	(2,683	)	$	10,738
Cost of products sold	—			2,779			2,525			4,622			(2,682		)	7,244
Selling and administrative expense	6			738			378			668			—			1,790
Research and development expense	—			76			76			149			—			301
Interest expense (income) - net	—			135			8			(7		)	2			138
Other expense (income) - net	(19		)	14			27			(16		)	—			6
Equity in loss (earnings) of    subsidiaries, net of tax	(1,101		)	(472		)	(1,737		)	(1,316		)	4,626			—
Intercompany expense (income) - net	16			2			1,044			(1,062		)	—			—
Income (loss) before income taxes	1,098			226			1,169			3,395			(4,629		)	1,259
Income tax expense (benefit)	—			(13		)	(28		)	203			(1		)	161
Net income (loss)	1,098			239			1,197			3,192			(4,628		)	1,098
Less net loss (income) for    noncontrolling interests	—			—			—			—			—			—
Net income (loss) attributable to    Eaton ordinary shareholders	$	1,098		$	239		$	1,197		$	3,192		$	(4,628	)	$	1,098
Other comprehensive income (loss)	$	(328	)	$	(29	)	$	(312	)	$	(777	)	$	1,118		$	(328	)
Total comprehensive income    (loss) attributable to Eaton    ordinary shareholders	$	770		$	210		$	885		$	2,415		$	(3,510	)	$	770

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		$	3,383		$	6,039		$	(2,710	)	$	9,980
Cost of products sold	—			2,622			2,491			4,350			(2,708		)	6,755
Selling and administrative expense	6			709			398			654			—			1,767
Research and development expense	—			94			88			111			—			293
Interest expense (income) - net	—			123			11			(13		)	—			121
Other expense (income) - net	48			27			(37		)	(33		)	—			5
Equity in loss (earnings) of    subsidiaries, net of tax	(1,288		)	(314		)	(1,643		)	(1,400		)	4,645			—
Intercompany expense (income) - net	284			(99		)	697			(882		)	—			—
Income (loss) before income taxes	950			106			1,378			3,252			(4,647		)	1,039
Income tax expense (benefit)	—			—			19			70			(1		)	88
Net income (loss)	950			106			1,359			3,182			(4,646		)	951
Less net loss (income) for    noncontrolling interests	—			—			—			(2		)	1			(1		)
Net income (loss) attributable to    Eaton ordinary shareholders	$	950		$	106		$	1,359		$	3,180		$	(4,645	)	$	950
Other comprehensive income (loss)	$	586		$	80		$	583		$	1,229		$	(1,892	)	$	586
Total comprehensive income (loss) attributable to Eaton ordinary shareholders	$	1,536		$	186		$	1,942		$	4,409		$	(6,537	)	$	1,536

CONDENSED CONSOLIDATING BALANCE SHEETS JUNE 30, 2018
	Eaton Corporation plc		Eaton Corporation		Guarantors			Other subsidiaries		Consolidating adjustments			Total
Assets
Current assets
Cash	$	—	$	5	$	10		$	241	$	—		$	256
Short-term investments	—		—		—			236		—			236
Accounts receivable - net	—		505		1,451			2,136		—			4,092
Intercompany accounts    receivable	1		1,643		1,838			3,168		(6,650		)	—
Inventory	—		530		772			1,535		(84		)	2,753
Prepaid expenses and    other current assets	—		131		98			332		15			576
Total current assets	1		2,814		4,169			7,648		(6,719		)	7,913
Property, plant and    equipment - net	—		844		689			1,929		—			3,462
Other noncurrent assets
Goodwill	—		1,317		6,705			5,405		—			13,427
Other intangible assets	—		133		3,129			1,788		—			5,050
Deferred income taxes	—		357		18			254		(333		)	296
Investment in subsidiaries	15,641		9,546		55,296			24,151		(104,634		)	—
Intercompany loans receivable	3,121		4,235		5,992			64,680		(78,028		)	—
Other assets	—		729		167			821		—			1,717
Total assets	$	18,763	$	19,975	$	76,165		$	106,676	$	(189,714	)	$	31,865
Liabilities and    shareholders’ equity
Current liabilities
Short-term debt	$	—	$	481	$	—		$	23	$	—		$	504
Current portion of    long-term debt	—		428		—			—		—			428
Accounts payable	—		474		437			1,281		—			2,192
Intercompany accounts payable	17		1,494		3,478			1,661		(6,650		)	—
Accrued compensation	—		79		46			228		—			353
Other current liabilities	2		506		226			1,179		(3		)	1,910
Total current liabilities	19		3,462		4,187			4,372		(6,653		)	5,387
Noncurrent liabilities
Long-term debt	—		5,784		957			8		4			6,753
Pension liabilities	—		329		88			757		—			1,174
Other postretirement    benefits liabilities	—		189		93			72		—			354
Deferred income taxes	—		1		589			229		(333		)	486
Intercompany loans payable	2,054		4,621		70,443			910		(78,028		)	—
Other noncurrent liabilities	—		345		265			376		—			986
Total noncurrent liabilities	2,054		11,269		72,435			2,352		(78,357		)	9,753
Shareholders’ equity
Eaton shareholders' equity	16,690		5,244		(457		)	99,917		(104,704		)	16,690
Noncontrolling interests	—		—		—			35		—			35
Total equity	16,690		5,244		(457		)	99,952		(104,704		)	16,725
Total liabilities and equity	$	18,763	$	19,975	$	76,165		$	106,676	$	(189,714	)	$	31,865

CONDENSED CONSOLIDATING BALANCE SHEETS DECEMBER 31, 2017
	Eaton Corporation plc		Eaton Corporation		Guarantors		Other subsidiaries		Consolidating adjustments			Total
Assets
Current assets
Cash	$	—	$	183	$	18	$	360	$	—		$	561
Short-term investments	—		—		—		534		—			534
Accounts receivable - net	—		482		1,376		2,085		—			3,943
Intercompany accounts    receivable	8		2,865		5,155		2,716		(10,744		)	—
Inventory	—		473		737		1,493		(83		)	2,620
Prepaid expenses and    other current assets	—		229		145		277		28			679
Total current assets	8		4,232		7,431		7,465		(10,799		)	8,337
Property, plant and    equipment - net	—		859		702		1,941		—			3,502
Other noncurrent assets
Goodwill	—		1,316		6,705		5,547		—			13,568
Other intangible assets	—		138		3,206		1,921		—			5,265
Deferred income taxes	—		356		6		215		(324		)	253
Investment in subsidiaries	15,045		9,445		75,404		39,848		(139,742		)	—
Intercompany loans receivable	3,122		7,105		2,909		61,427		(74,563		)	—
Other assets	—		748		166		784		—			1,698
Total assets	$	18,175	$	24,199	$	96,529	$	119,148	$	(225,428	)	$	32,623
Liabilities and    shareholders’ equity
Current liabilities
Short-term debt	$	—	$	—	$	—	$	6	$	—		$	6
Current portion of    long-term debt	—		542		35		1		—			578
Accounts payable	—		549		330		1,287		—			2,166
Intercompany accounts payable	4		4,917		4,418		1,405		(10,744		)	—
Accrued compensation	—		128		65		260		—			453
Other current liabilities	1		566		317		989		(1		)	1,872
Total current liabilities	5		6,702		5,165		3,948		(10,745		)	5,075
Noncurrent liabilities
Long-term debt	—		6,180		976		9		2			7,167
Pension liabilities	—		341		89		796		—			1,226
Other postretirement    benefits liabilities	—		192		96		74		—			362
Deferred income taxes	—		—		607		255		(324		)	538
Intercompany loans payable	917		3,808		68,685		1,153		(74,563		)	—
Other noncurrent liabilities	—		314		273		378		—			965
Total noncurrent liabilities	917		10,835		70,726		2,665		(74,885		)	10,258
Shareholders’ equity
Eaton shareholders' equity	17,253		6,662		20,638		112,498		(139,798		)	17,253
Noncontrolling interests	—		—		—		37		—			37
Total equity	17,253		6,662		20,638		112,535		(139,798		)	17,290
Total liabilities and equity	$	18,175	$	24,199	$	96,529	$	119,148	$	(225,428	)	$	32,623

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS FOR THE SIX MONTHS ENDED JUNE 30, 2018
	Eaton Corporation plc			Eaton Corporation			Guarantors			Other subsidiaries			Consolidating adjustments			Total
Net cash provided by (used in)    operating activities	$	—		$	(125	)	$	103		$	944		$	(84	)	$	838
Investing activities
Capital expenditures for property,    plant and equipment	—			(48		)	(51		)	(181		)	—			(280		)
Sales (purchases) of short-term investments - net	—			—			—			284			—			284
Investments in affiliates	—			(36		)	—			—			36			—
Loans to affiliates	—			(100		)	(85		)	(3,563		)	3,748			—
Repayments of loans from affiliates	—			507			886			3,110			(4,503		)	—
Other - net	—			(23		)	1			(19		)	—			(41		)
Net cash provided by (used in) investing activities	—			300			751			(369		)	(719		)	(37		)
Financing activities
Proceeds from borrowings	—			481			—			19			—			500
Payments on borrowings	—			(450		)	(35		)	(1		)	—			(486		)
Proceeds from borrowings from    affiliates	2,383			1,215			50			100			(3,748		)	—
Payments on borrowings from    affiliates	(1,226		)	(1,994		)	(524		)	(759		)	4,503			—
Capital contributions from affiliates	—			—			—			36			(36		)	—
Other intercompany financing    activities	—			411			(348		)	(63		)	—			—
Cash dividends paid	(578		)	—			—			—			—			(578		)
Cash dividends paid to affiliates	—			—			—			(84		)	84			—
Exercise of employee stock options	21			—			—			—			—			21
Repurchase of shares	(600		)	—			—			—			—			(600		)
Employee taxes paid from shares withheld	—			(15		)	(5		)	(3		)	—			(23		)
Other - net	—			(1		)	—			(1		)	—			(2		)
Net cash provided by (used in)    financing activities	—			(353		)	(862		)	(756		)	803			(1,168		)
Effect of currency on cash	—			—			—			62			—			62
Total increase (decrease) in cash	—			(178		)	(8		)	(119		)	—			(305		)
Cash at the beginning of the period	—			183			18			360			—			561
Cash at the end of the period	$	—		$	5		$	10		$	241		$	—		$	256

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		$	(12	)	$	969		$	1,014		$	(1,507	)	$	1,037
Investing activities
Capital expenditures for property,    plant and equipment	—			(45		)	(56		)	(145		)	—			(246		)
Sales (purchases) of short-term investments - net	—			—			—			(309		)	—			(309		)
Investments in affiliates	(90		)	(29		)	—			(90		)	209			—
Return of investments in affiliates	—			—			20			—			(20		)	—
Loans to affiliates	—			(17		)	(283		)	(3,570		)	3,870			—
Repayments of loans from affiliates	—			291			287			3,035			(3,613		)	—
Other - net	—			(26		)	(84		)	79			—			(31		)
Net cash provided by (used in)    investing activities	(90		)	174			(116		)	(1,000		)	446			(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			119			(209		)	—
Return of capital to affiliates	—			—			—			(20		)	20			—
Other intercompany financing activities	—			(288		)	(196		)	484			—			—
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		)	(234		)	(859		)	(173		)	1,061			(689		)
Effect of currency on cash	—			—			—			7			—			7
Total increase (decrease) in cash	(1		)	(72		)	(6		)	(152		)	—			(231		)
Cash at the beginning of the period	1			92			12			438			—			543
Cash at the end of the period	$	—		$	20		$	6		$	286		$	—		$	312

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BASIS OF PRESENTATION - Balance Sheet (Details) - USD ($) $ in Millions	Jun. 30, 2018	Jan. 01, 2018	Dec. 31, 2017
Assets
Accounts receivable - net	$ 4,092	$ 3,844	$ 3,943
Prepaid expenses and other current assets	576	808	679
Deferred income taxes	296	254	253
Liabilities and shareholders' equity
Other current liabilities	1,910	1,905	1,872
Eaton shareholders' equity	16,690	17,251	17,253
Calculated under Revenue Guidance in Effect before Topic 606
Assets
Accounts receivable - net	4,213		3,943
Prepaid expenses and other current assets	412		679
Deferred income taxes	295		253
Liabilities and shareholders' equity
Other current liabilities	$ 1,879		1,872
Eaton shareholders' equity			$ 17,253
ASU 2014-09 | Difference between Revenue Guidance in Effect before and after Topic 606
Assets
Accounts receivable - net		(99)
Prepaid expenses and other current assets		129
Deferred income taxes		1
Liabilities and shareholders' equity
Other current liabilities		33
Eaton shareholders' equity		$ (2)

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BASIS OF PRESENTATION - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Jan. 01, 2018
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Cumulative-effect adjustment upon adoption	$ (2)		$ (2)
Selling and administrative expense	901	$ 891	1,790	$ 1,767
Other income (expense) - net	$ (8)	$ (11)	(6)	(5)
Accounting Standards Update 2016-16 [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Cumulative-effect adjustment upon adoption					$ 199
Accounting Standards Update 2017-07 [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Selling and administrative expense			1	(20)
Other income (expense) - net			$ (1)	$ 20

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ACQUISITION AND INTEGRATION CHARGES (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Acquisition integration charges [Line Items]
Acquisition integration charges	$ 0	$ 1	$ 0	$ 2
Income taxes	0	1	0	1
Total after income taxes	$ 0	$ 0	$ 0	$ 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	$ 0	$ 1	$ 0	$ 2

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REVENUE RECOGNITION - Narrative (Details) $ in Millions	6 Months Ended
	Jun. 30, 2018 USD ($) segment	Jan. 01, 2018 USD ($)	Dec. 31, 2017 USD ($)
Revenue from Contract with Customer [Abstract]
Sales recognized over time, as a percent of Consolidated Net Sales (less than)	5.00%
Number of operating segments | segment	6
Accounts receivables from customers	$ 3,606		$ 3,399
Unbilled receivables	150	$ 117
Backlog of unsatisfied or partially satisfied obligations	$ 5,400
Backlog expected to be recognized in the next twelve months (as a percent)	89.00%

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REVENUE RECOGNITION - Schedule of Disaggregation of Sales (Details) - USD ($) $ in Millions	3 Months Ended	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2018
Disaggregation of Revenue [Line Items]
Net sales	$ 5,487	$ 10,738
Electrical Products [Member]
Disaggregation of Revenue [Line Items]
Net sales	1,806	3,538
Electrical Products [Member] | United States [Member]
Disaggregation of Revenue [Line Items]
Net sales	1,033	1,993
Electrical Products [Member] | Rest of world [Member]
Disaggregation of Revenue [Line Items]
Net sales	773	1,545
Electrical Systems and Services [Member]
Disaggregation of Revenue [Line Items]
Net sales	1,513	2,894
Electrical Systems and Services [Member] | United States [Member]
Disaggregation of Revenue [Line Items]
Net sales	983	1,877
Electrical Systems and Services [Member] | Rest of world [Member]
Disaggregation of Revenue [Line Items]
Net sales	530	1,017
Hydraulics [Member]
Disaggregation of Revenue [Line Items]
Net sales	723	1,433
Hydraulics [Member] | United States [Member]
Disaggregation of Revenue [Line Items]
Net sales	309	606
Hydraulics [Member] | Rest of world [Member]
Disaggregation of Revenue [Line Items]
Net sales	414	827
Aerospace [Member]
Disaggregation of Revenue [Line Items]
Net sales	463	921
Aerospace [Member] | Original Equipment Manufacturers [Member]
Disaggregation of Revenue [Line Items]
Net sales	266	530
Aerospace [Member] | Aftermarket, Distribution and End User [Member]
Disaggregation of Revenue [Line Items]
Net sales	197	391
Vehicle [Member]
Disaggregation of Revenue [Line Items]
Net sales	899	1,792
Vehicle [Member] | Commercial [Member]
Disaggregation of Revenue [Line Items]
Net sales	452	882
Vehicle [Member] | Passenger and Light Duty [Member]
Disaggregation of Revenue [Line Items]
Net sales	447	910
eMobility [Member]
Disaggregation of Revenue [Line Items]
Net sales	$ 83	$ 160

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REVENUE RECOGNITION - Schedule of Changes in Deferred Revenue Liabilities (Details) $ in Millions	6 Months Ended
	Jun. 30, 2018 USD ($)
Movement in Deferred Revenue [Roll Forward]
Beginning balance	$ 227
Customer deposits and billings	463
Revenue recognized in the period	(443)
Translation	(3)
Ending balance	$ 244

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REVENUE RECOGNITION - Schedule of the Impact of Adoption of ASU 2014-09 (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Jan. 01, 2018	Dec. 31, 2017
Consolidated Statements of Income
Net sales	$ 5,487	$ 5,132	$ 10,738	$ 9,980
Cost of products sold	3,671	3,448	7,244	6,755
Income before income taxes	694	572	1,259	1,039
Income tax expense	83	55	161	88
Net income	611	517	1,098	951
Net income attributable to Eaton ordinary shareholders	610	$ 516	1,098	$ 950
Assets
Accounts receivable - net	4,092		4,092		$ 3,844	$ 3,943
Inventory	2,753		2,753			2,620
Prepaid expenses and other current assets	576		576		808	679
Deferred income taxes	296		296		254	253
Liabilities and shareholders’ equity
Other current liabilities	1,910		1,910		$ 1,905	1,872
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	16,725		16,725			17,290
Difference between Revenue Guidance in Effect before and after Topic 606 | Adjustment
Consolidated Statements of Income
Net sales	(11)		(18)
Cost of products sold	(6)		(10)
Income before income taxes	(5)		(8)
Income tax expense	(1)		(2)
Net income	(4)		(6)
Net income attributable to Eaton ordinary shareholders	(4)		(6)
Assets
Accounts receivable - net	121		121
Inventory	9		9
Prepaid expenses and other current assets	(164)		(164)
Deferred income taxes	(1)		(1)
Liabilities and shareholders’ equity
Other current liabilities	(31)		(31)
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	(4)		(4)
Calculated under Revenue Guidance in Effect before Topic 606
Consolidated Statements of Income
Net sales	5,476		10,720
Cost of products sold	3,665		7,234
Income before income taxes	689		1,251
Income tax expense	82		159
Net income	607		1,092
Net income attributable to Eaton ordinary shareholders	606		1,092
Assets
Accounts receivable - net	4,213		4,213			3,943
Inventory	2,762		2,762
Prepaid expenses and other current assets	412		412			679
Deferred income taxes	295		295			253
Liabilities and shareholders’ equity
Other current liabilities	1,879		1,879			$ 1,872
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	$ 16,721		$ 16,721

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RESTRUCTURING CHARGES - Restructuring Roll Forward (Details) - USD ($) $ in Millions	6 Months Ended	12 Months Ended
	Jun. 30, 2018	Dec. 31, 2017
Restructuring Reserve [Roll Forward]
Beginning balance	$ 72	$ 114
Liability recognized		116
Payments	(29)	(141)
Other adjustments	(10)	(17)
Ending balance	33	72
Workforce reductions [Member]
Restructuring Reserve [Roll Forward]
Beginning balance	67	113
Liability recognized		57
Payments	(25)	(102)
Other adjustments	(10)	(1)
Ending balance	32	67
Plant closings and other [Member]
Restructuring Reserve [Roll Forward]
Beginning balance	5	1
Liability recognized		59
Payments	(4)	(39)
Other adjustments	0	(16)
Ending balance	$ 1	$ 5

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GOODWILL (Details) $ in Millions	6 Months Ended
	Jun. 30, 2018 USD ($)
Goodwill [Roll Forward]
Beginning balance	$ 13,568
Translation	(141)
Ending balance	13,427
Electrical Products [Member]
Goodwill [Roll Forward]
Beginning balance	6,678
Translation	(71)
Ending balance	6,607
Electrical Systems and Services [Member]
Goodwill [Roll Forward]
Beginning balance	4,311
Translation	(36)
Ending balance	4,275
Hydraulics [Member]
Goodwill [Roll Forward]
Beginning balance	1,257
Translation	(29)
Ending balance	1,228
Aerospace [Member]
Goodwill [Roll Forward]
Beginning balance	947
Translation	(3)
Ending balance	944
Vehicle [Member]
Goodwill [Roll Forward]
Beginning balance	294
Translation	(2)
Ending balance	292
eMobility [Member]
Goodwill [Roll Forward]
Beginning balance	81
Translation	0
Ending balance	$ 81

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RETIREMENT BENEFIT PLANS (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Pension plan | United States pension benefit expense
Retirement benefits plans expense
Service cost	$ 25	$ 24	$ 50	$ 48
Interest cost	31	31	61	62
Expected return on plan assets	(64)	(61)	(127)	(122)
Amortization	23	21	47	41
Total	15	15	31	29
Settlements	11	17	25	34
Total expense	26	32	56	63
Pension plan | Non-United States pension benefit expense
Retirement benefits plans expense
Service cost	16	18	32	35
Interest cost	13	14	27	27
Expected return on plan assets	(26)	(23)	(53)	(46)
Amortization	10	12	20	25
Total	13	21	26	41
Settlements	0	0	0	0
Total expense	13	21	26	41
Other postretirement benefits expense
Retirement benefits plans expense
Service cost	0	0	1	1
Interest cost	4	4	7	7
Expected return on plan assets	(1)	(1)	(2)	(2)
Amortization	(3)	(3)	(6)	(6)
Total	0	0	0	0
Settlements	0	0	0	0
Total expense	$ 0	$ 0	$ 0	$ 0

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LEGAL CONTINGENCIES (Details) $ in Millions	Jul. 11, 2018 USD ($)
Commitments and Contingencies Disclosure [Abstract]
Loss Contingency, Damages Sought, Value	$ 347.0

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INCOME TAXES (Details)	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Income Tax Disclosure [Abstract]
Effective tax rate	12.00%	9.70%	12.80%	8.50%

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EQUITY - Changes in Shareholders's Equity (Details) - USD ($) shares in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Jan. 01, 2018
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance at December 31, 2017			$ 17,290
Cumulative-effect adjustment upon adoption of ASU 2014-09	$ (2)		(2)
Cumulative-effect adjustment upon adoption of ASU 2016-16	(199)		(199)
Net income (loss)	611	$ 517	1,098	$ 951
Other comprehensive income	(624)	$ 323	(328)	$ 586
Cash dividends paid			(579)
Issuance of shares under equity-based compensation plans - net			46
Repurchase of shares			(600)
Changes in noncontrolling interest - net			(1)
Balance at June 30, 2018	16,725		16,725
Parent [Member]
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance at December 31, 2017			17,253
Cumulative-effect adjustment upon adoption of ASU 2014-09	(2)		(2)
Cumulative-effect adjustment upon adoption of ASU 2016-16	(199)		(199)
Net income (loss)			1,098
Other comprehensive income			(328)
Cash dividends paid			(578)
Issuance of shares under equity-based compensation plans - net			46
Repurchase of shares			(600)
Changes in noncontrolling interest - net			0
Balance at June 30, 2018	16,690		16,690
Noncontrolling Interest [Member]
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance at December 31, 2017			37
Cumulative-effect adjustment upon adoption of ASU 2014-09	0		0
Cumulative-effect adjustment upon adoption of ASU 2016-16	0		0
Net income (loss)			0
Other comprehensive income			0
Cash dividends paid			(1)
Issuance of shares under equity-based compensation plans - net			0
Repurchase of shares			0
Changes in noncontrolling interest - net			(1)
Balance at June 30, 2018	$ 35		$ 35
2016 Program [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Ordinary shares purchased (in shares)	4.0	2.7	7.7	6.3
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Repurchase of shares	$ (300)	$ (210)	$ (600)	$ (465)
Accounting Standards Update 2016-16 [Member]
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Cumulative-effect adjustment upon adoption of ASU 2014-09					$ 199

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EQUITY - Changes in Accumulated Other Comprehensive (Loss) Income (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Amounts reclassified from Accumulated other comprehensive loss			$ 75
Net current-period Other comprehensive (loss) income	$ (624)	$ 323	(328)	$ 586
Currency translation and related hedging instruments [Member]
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance			(2,255)
Other comprehensive (loss) income before reclassifications			(414)
Amounts reclassified from Accumulated other comprehensive loss			0
Net current-period Other comprehensive (loss) income			(414)
Ending balance	(2,669)		(2,669)
Pensions and other postretirement benefits [Member]
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance			(1,139)
Other comprehensive (loss) income before reclassifications			13
Amounts reclassified from Accumulated other comprehensive loss			69
Net current-period Other comprehensive (loss) income			82
Ending balance	(1,057)		(1,057)
Cash flow hedges [Member]
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance			(10)
Other comprehensive (loss) income before reclassifications			(2)
Amounts reclassified from Accumulated other comprehensive loss			6
Net current-period Other comprehensive (loss) income			4
Ending balance	(6)		(6)
Total AOCI Attributable to Parent [Member]
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance			(3,404)
Other comprehensive (loss) income before reclassifications			(403)
Amounts reclassified from Accumulated other comprehensive loss			75
Net current-period Other comprehensive (loss) income			(328)
Ending balance	$ (3,732)		$ (3,732)

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EQUITY - Reclassifications Out of Accumulated Other Comprehensive Loss (Details) $ in Millions	6 Months Ended
	Jun. 30, 2018 USD ($)
Stockholders' Equity Note [Abstract]
Actuarial loss and prior service cost	$ (86)	[1]
Tax benefit	17
Total, net of tax	(69)
Currency exchange contracts	(8)
Tax benefit	2
Total, net of tax	(6)
Total reclassifications for the period	$ (75)

[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.

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EQUITY - Calculation of Net Income per Ordinary Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Calculation of net income per ordinary share attributable to ordinary shareholders
Net income attributable to Eaton ordinary shareholders	$ 610	$ 516	$ 1,098	$ 950
Weighted-average number of ordinary shares outstanding - diluted (shares)	437.3	448.6	439.5	449.8
Less dilutive effect of equity-based compensation (shares)	(2.1)	(2.3)	(2.5)	(2.3)
Weighted-average number of ordinary shares outstanding - basic (shares)	435.2	446.3	437.0	447.5
Net income per share attributable to Eaton ordinary shareholders
Diluted (usd per share)	$ 1.39	$ 1.15	$ 2.50	$ 2.11
Basic (usd per share)	$ 1.40	$ 1.16	$ 2.51	$ 2.12
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	0.6	0.2	0.3	0.7

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FAIR VALUE MEASUREMENTS - Summary of Financial Instruments at Fair Value (Details) - USD ($) $ in Millions	Jun. 30, 2018	Dec. 31, 2017	Jun. 30, 2017	Dec. 31, 2016
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items]
Cash	$ 256	$ 561	$ 312	$ 543
Short-term investments	236	534
Net derivative contracts	(140)	36
Level 1 [Member]
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items]
Cash	256	561
Short-term investments	236	534
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	(140)	36
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

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FAIR VALUE MEASUREMENTS - Other Fair Value Measurements (Details) - Level 2 [Member] - USD ($) $ in Millions	Jun. 30, 2018	Dec. 31, 2017
Other Fair Value Measurements [Line Items]
Carrying value of long-term debt and current portion of long-term debt	$ 7,181	$ 7,745
Fair value of long-term debt and current portion of long-term debt	$ 7,218	$ 8,048

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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, 2018	Dec. 31, 2017
Derivatives, Fair Value [Line Items]
Foreign Currency Note Payable, Noncurrent, after-tax	$ 90	$ 88
Foreign Currency Note Payable, Noncurrent, pre-tax	$ 634	652
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	$ 13	8
Derivatives not designated as hedges
Derivative instruments not designated as hedging instruments, asset, at fair value	33	40
Other noncurrent assets [Member]
Derivatives designated as hedges
Derivative asset designated as hedging instrument	23	48
Other current liabilities [Member]
Derivatives designated as hedges
Derivative liability designated as hedging instrument	19	22
Derivatives not designated as hedges
Derivative instruments not designated as hedging instruments, liability, at fair value	135	19
Other noncurrent liabilities [Member]
Derivatives designated as hedges
Derivative liability designated as hedging instrument	55	19
Currency exchange contracts [Member] | Other current assets [Member]
Derivatives not designated as hedges
Derivative instruments not designated as hedging instruments, asset, at fair value	33	39
Currency exchange contracts [Member] | Other current liabilities [Member]
Derivatives not designated as hedges
Derivative instruments not designated as hedging instruments, liability, at fair value	135	19
Commodity contracts [Member] | Other current assets [Member]
Derivatives not designated as hedges
Derivative instruments not designated as hedging instruments, asset, at fair value	0	1
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	2,550	2,965
Derivatives designated as hedges [Member] | Fair value hedging [Member] | Fixed-to-floating interest rate swaps [Member] | Other current assets [Member]
Derivatives designated as hedges
Derivative asset designated as hedging instrument	0	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	18	41
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	51	17
Derivatives designated as hedges [Member] | Cash Flow Hedging [Member] | Currency exchange contracts [Member]
Derivatives designated as hedges
Notional amount	950	924
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	13	7
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	5	7
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	18	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	4	2
Derivatives not designated as hedges [Member] | Currency exchange contracts [Member]
Derivatives designated as hedges
Notional amount	6,033	3,719
Derivatives not designated as hedges [Member] | Commodity contracts [Member]
Derivatives designated as hedges
Notional amount	$ 11	$ 13
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	9 months	6 months
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	16 years	17 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, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
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	$ 0	$ (5)	$ 0	$ (5)
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	(15)	2	(2)	1
Gain (loss) reclassified from Accumulated other comprehensive loss	(4)	(1)	(8)	(5)
Cost of products sold or Interest expense - net [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) recognized in other comprehensive (loss) income	(15)	(3)	(2)	(4)
Gain (loss) reclassified from Accumulated other comprehensive loss	$ (4)	$ (1)	$ (8)	$ (5)

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, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
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	(16)	8	(59)	(3)
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	$ 16	$ (8)	$ 59	$ 3

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INVENTORY (Details) - USD ($) $ in Millions	Jun. 30, 2018	Dec. 31, 2017
Inventory Disclosure [Abstract]
Raw materials	$ 1,065	$ 953
Work-in-process	524	471
Finished goods	1,164	1,196
Total inventory	$ 2,753	$ 2,620

XML

BUSINESS SEGMENT INFORMATION (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Business Segment Information
Net sales	$ 5,487	$ 5,132	$ 10,738	$ 9,980
Corporate
Interest expense - net	68	60	138	121
Pension and other postretirement benefits expense			(82)	(104)
Other corporate expense - net	8	11	6	5
Income before income taxes	694	572	1,259	1,039
Income tax expense	83	55	161	88
Net income	611	517	1,098	951
Less net income for noncontrolling interests	(1)	(1)	0	(1)
Net income attributable to Eaton ordinary shareholders	610	516	1,098	950
Total business segments [Member]
Business Segment Information
Net sales	5,487	5,132	10,738	9,980
Segment operating profit	932	802	1,728	1,501
Total business segments [Member] | Electrical Products [Member]
Business Segment Information
Net sales	1,806	1,731	3,538	3,382
Segment operating profit	334	299	641	585
Total business segments [Member] | Electrical Systems and Services [Member]
Business Segment Information
Net sales	1,513	1,414	2,894	2,747
Segment operating profit	227	194	394	349
Total business segments [Member] | Hydraulics [Member]
Business Segment Information
Net sales	723	633	1,433	1,220
Segment operating profit	101	74	191	134
Total business segments [Member] | Aerospace [Member]
Business Segment Information
Net sales	463	437	921	865
Segment operating profit	90	81	179	160
Total business segments [Member] | Vehicle [Member]
Business Segment Information
Net sales	899	845	1,792	1,631
Segment operating profit	166	141	298	249
Total business segments [Member] | eMobility [Member]
Business Segment Information
Net sales	83	72	160	135
Segment operating profit	14	13	25	24
Corporate [Member]
Corporate
Amortization of intangible assets	(96)	(96)	(194)	(190)
Interest expense - net	(68)	(60)	(138)	(121)
Pension and other postretirement benefits expense	1	(11)	(1)	(22)
Other corporate expense - net	$ (75)	$ (63)	$ (136)	$ (129)

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CONDENSED CONSOLIDATING FINANCIAL STATEMENTS - Narrative (Details)	Sep. 15, 2017	Nov. 14, 2013
Condensed Consolidating Financial Information [Abstract]
Eaton and certain other 100% owned subsidiaries guarantee of Senior Debt	100.00%	100.00%

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CONDENSED CONSOLIDATING FINANCIAL STATEMENTS - Consolidating Statements of Comprehensive Income (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Consolidating Statements of Comprehensive Income, Captions [Line Items]
Net sales	$ 5,487	$ 5,132	$ 10,738	$ 9,980
Cost of products sold	3,671	3,448	7,244	6,755
Selling and administrative expense	901	891	1,790	1,767
Research and development expense	145	150	301	293
Interest expense (income) - net	68	60	138	121
Other expense - net	8	11	6	5
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	694	572	1,259	1,039
Income tax expense (benefit)	83	55	161	88
Net income	611	517	1,098	951
Less net loss (income) for noncontrolling interests	(1)	(1)	0	(1)
Net income attributable to Eaton ordinary shareholders	610	516	1,098	950
Other comprehensive income	(624)	323	(328)	586
Total comprehensive income (loss) attributable to Eaton ordinary shareholders	(14)	839	770	1,536
Guarantors
Consolidating Statements of Comprehensive Income, Captions [Line Items]
Net sales	1,790	1,727	3,490	3,383
Cost of products sold	1,289	1,263	2,525	2,491
Selling and administrative expense	200	200	378	398
Research and development expense	35	46	76	88
Interest expense (income) - net	4	6	8	11
Other expense - net	36	(38)	27	(37)
Equity in loss (earnings) of subsidiaries, net of tax	(921)	(861)	(1,737)	(1,643)
Intercompany expense (income) - net	557	352	1,044	697
Income before income taxes	590	759	1,169	1,378
Income tax expense (benefit)	(14)	3	(28)	19
Net income	604	756	1,197	1,359
Less net loss (income) for noncontrolling interests	0	0	0	0
Net income attributable to Eaton ordinary shareholders	604	756	1,197	1,359
Other comprehensive income	(608)	321	(312)	583
Total comprehensive income (loss) attributable to Eaton ordinary shareholders	(4)	1,077	885	1,942
Other subsidiaries [Member]
Consolidating Statements of Comprehensive Income, Captions [Line Items]
Net sales	3,242	3,109	6,433	6,039
Cost of products sold	2,312	2,210	4,622	4,350
Selling and administrative expense	301	326	668	654
Research and development expense	73	57	149	111
Interest expense (income) - net	(6)	(7)	(7)	(13)
Other expense - net	0	(9)	(16)	(33)
Equity in loss (earnings) of subsidiaries, net of tax	(658)	(747)	(1,316)	(1,400)
Intercompany expense (income) - net	(592)	(451)	(1,062)	(882)
Income before income taxes	1,812	1,730	3,395	3,252
Income tax expense (benefit)	104	52	203	70
Net income	1,708	1,678	3,192	3,182
Less net loss (income) for noncontrolling interests	(1)	(1)	0	(2)
Net income attributable to Eaton ordinary shareholders	1,707	1,677	3,192	3,180
Other comprehensive income	(1,390)	714	(777)	1,229
Total comprehensive income (loss) attributable to Eaton ordinary shareholders	317	2,391	2,415	4,409
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	3	4	6	6
Research and development expense	0	0	0	0
Interest expense (income) - net	0	0	0	0
Other expense - net	(37)	41	(19)	48
Equity in loss (earnings) of subsidiaries, net of tax	(587)	(705)	(1,101)	(1,288)
Intercompany expense (income) - net	11	144	16	284
Income before income taxes	610	516	1,098	950
Income tax expense (benefit)	0	0	0	0
Net income	610	516	1,098	950
Less net loss (income) for noncontrolling interests	0	0	0	0
Net income attributable to Eaton ordinary shareholders	610	516	1,098	950
Other comprehensive income	(624)	323	(328)	586
Total comprehensive income (loss) attributable to Eaton ordinary shareholders	(14)	839	770	1,536
Eaton Corporation [Member]
Consolidating Statements of Comprehensive Income, Captions [Line Items]
Net sales	1,809	1,696	3,498	3,268
Cost of products sold	1,427	1,371	2,779	2,622
Selling and administrative expense	397	361	738	709
Research and development expense	37	47	76	94
Interest expense (income) - net	67	60	135	123
Other expense - net	9	17	14	27
Equity in loss (earnings) of subsidiaries, net of tax	(209)	(167)	(472)	(314)
Intercompany expense (income) - net	24	(45)	2	(99)
Income before income taxes	57	52	226	106
Income tax expense (benefit)	(7)	3	(13)	0
Net income	64	49	239	106
Less net loss (income) for noncontrolling interests	0	0	0	0
Net income attributable to Eaton ordinary shareholders	64	49	239	106
Other comprehensive income	(63)	17	(29)	80
Total comprehensive income (loss) attributable to Eaton ordinary shareholders	1	66	210	186
Consolidating adjustments [Member]
Consolidating Statements of Comprehensive Income, Captions [Line Items]
Net sales	(1,354)	(1,400)	(2,683)	(2,710)
Cost of products sold	(1,357)	(1,396)	(2,682)	(2,708)
Selling and administrative expense	0	0	0	0
Research and development expense	0	0	0	0
Interest expense (income) - net	3	1	2	0
Other expense - net	0	0	0	0
Equity in loss (earnings) of subsidiaries, net of tax	2,375	2,480	4,626	4,645
Intercompany expense (income) - net	0	0	0	0
Income before income taxes	(2,375)	(2,485)	(4,629)	(4,647)
Income tax expense (benefit)	0	(3)	(1)	(1)
Net income	(2,375)	(2,482)	(4,628)	(4,646)
Less net loss (income) for noncontrolling interests	0	0	0	1
Net income attributable to Eaton ordinary shareholders	(2,375)	(2,482)	(4,628)	(4,645)
Other comprehensive income	2,061	(1,052)	1,118	(1,892)
Total comprehensive income (loss) attributable to Eaton ordinary shareholders	$ (314)	$ (3,534)	$ (3,510)	$ (6,537)

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CONDENSED CONSOLIDATING FINANCIAL STATEMENTS - Condensed Consolidating Balance Sheets (Details) - USD ($) $ in Millions	Jun. 30, 2018	Jan. 01, 2018	Dec. 31, 2017	Jun. 30, 2017	Dec. 31, 2016
Current assets
Cash	$ 256		$ 561	$ 312	$ 543
Short-term investments	236		534
Accounts receivable - net	4,092	$ 3,844	3,943
Intercompany accounts receivable	0		0
Inventory	2,753		2,620
Prepaid expenses and other current assets	576	808	679
Total current assets	7,913		8,337
Property, plant and equipment - net	3,462		3,502
Other noncurrent assets
Goodwill	13,427		13,568
Other intangible assets	5,050		5,265
Deferred income taxes	296	254	253
Investment in subsidiaries	0		0
Intercompany loans receivables	0		0
Other assets	1,717		1,698
Total assets	31,865		32,623
Current liabilities
Short-term debt	504		6
Current portion of long-term debt	428		578
Accounts payable	2,192		2,166
Intercompany accounts payable	0		0
Accrued compensation	353		453
Other current liabilities	1,910	1,905	1,872
Total current liabilities	5,387		5,075
Noncurrent liabilities
Long-term debt	6,753		7,167
Pension liabilities	1,174		1,226
Other postretirement benefits liabilities	354		362
Deferred income taxes	486		538
Intercompany loans payable	0		0
Other noncurrent liabilities	986		965
Total noncurrent liabilities	9,753		10,258
Shareholders’ equity
Eaton shareholders' equity	16,690	$ 17,251	17,253
Noncontrolling interests	35		37
Total equity	16,725		17,290
Total liabilities and equity	31,865		32,623
Consolidation, Eliminations [Member]
Current assets
Cash	0		0	0	0
Short-term investments	0		0
Accounts receivable - net	0		0
Intercompany accounts receivable	(6,650)		(10,744)
Inventory	(84)		(83)
Prepaid expenses and other current assets	15		28
Total current assets	(6,719)		(10,799)
Property, plant and equipment - net	0		0
Other noncurrent assets
Goodwill	0		0
Other intangible assets	0		0
Deferred income taxes	(333)		(324)
Investment in subsidiaries	(104,634)		(139,742)
Intercompany loans receivables	(78,028)		(74,563)
Other assets	0		0
Total assets	(189,714)		(225,428)
Current liabilities
Short-term debt	0		0
Current portion of long-term debt	0		0
Accounts payable	0		0
Intercompany accounts payable	(6,650)		(10,744)
Accrued compensation	0		0
Other current liabilities	(3)		(1)
Total current liabilities	(6,653)		(10,745)
Noncurrent liabilities
Long-term debt	4		2
Pension liabilities	0		0
Other postretirement benefits liabilities	0		0
Deferred income taxes	(333)		(324)
Intercompany loans payable	(78,028)		(74,563)
Other noncurrent liabilities	0		0
Total noncurrent liabilities	(78,357)		(74,885)
Shareholders’ equity
Eaton shareholders' equity	(104,704)		(139,798)
Noncontrolling interests	0		0
Total equity	(104,704)		(139,798)
Total liabilities and equity	(189,714)		(225,428)
Other subsidiaries [Member]
Current assets
Cash	241		360	286	438
Short-term investments	236		534
Accounts receivable - net	2,136		2,085
Intercompany accounts receivable	3,168		2,716
Inventory	1,535		1,493
Prepaid expenses and other current assets	332		277
Total current assets	7,648		7,465
Property, plant and equipment - net	1,929		1,941
Other noncurrent assets
Goodwill	5,405		5,547
Other intangible assets	1,788		1,921
Deferred income taxes	254		215
Investment in subsidiaries	24,151		39,848
Intercompany loans receivables	64,680		61,427
Other assets	821		784
Total assets	106,676		119,148
Current liabilities
Short-term debt	23		6
Current portion of long-term debt	0		1
Accounts payable	1,281		1,287
Intercompany accounts payable	1,661		1,405
Accrued compensation	228		260
Other current liabilities	1,179		989
Total current liabilities	4,372		3,948
Noncurrent liabilities
Long-term debt	8		9
Pension liabilities	757		796
Other postretirement benefits liabilities	72		74
Deferred income taxes	229		255
Intercompany loans payable	910		1,153
Other noncurrent liabilities	376		378
Total noncurrent liabilities	2,352		2,665
Shareholders’ equity
Eaton shareholders' equity	99,917		112,498
Noncontrolling interests	35		37
Total equity	99,952		112,535
Total liabilities and equity	106,676		119,148
Guarantors [Member]
Current assets
Cash	10		18	6	12
Short-term investments	0		0
Accounts receivable - net	1,451		1,376
Intercompany accounts receivable	1,838		5,155
Inventory	772		737
Prepaid expenses and other current assets	98		145
Total current assets	4,169		7,431
Property, plant and equipment - net	689		702
Other noncurrent assets
Goodwill	6,705		6,705
Other intangible assets	3,129		3,206
Deferred income taxes	18		6
Investment in subsidiaries	55,296		75,404
Intercompany loans receivables	5,992		2,909
Other assets	167		166
Total assets	76,165		96,529
Current liabilities
Short-term debt	0		0
Current portion of long-term debt	0		35
Accounts payable	437		330
Intercompany accounts payable	3,478		4,418
Accrued compensation	46		65
Other current liabilities	226		317
Total current liabilities	4,187		5,165
Noncurrent liabilities
Long-term debt	957		976
Pension liabilities	88		89
Other postretirement benefits liabilities	93		96
Deferred income taxes	589		607
Intercompany loans payable	70,443		68,685
Other noncurrent liabilities	265		273
Total noncurrent liabilities	72,435		70,726
Shareholders’ equity
Eaton shareholders' equity	(457)		20,638
Noncontrolling interests	0		0
Total equity	(457)		20,638
Total liabilities and equity	76,165		96,529
Eaton Corporation [Member]
Current assets
Cash	5		183	20	92
Short-term investments	0		0
Accounts receivable - net	505		482
Intercompany accounts receivable	1,643		2,865
Inventory	530		473
Prepaid expenses and other current assets	131		229
Total current assets	2,814		4,232
Property, plant and equipment - net	844		859
Other noncurrent assets
Goodwill	1,317		1,316
Other intangible assets	133		138
Deferred income taxes	357		356
Investment in subsidiaries	9,546		9,445
Intercompany loans receivables	4,235		7,105
Other assets	729		748
Total assets	19,975		24,199
Current liabilities
Short-term debt	481		0
Current portion of long-term debt	428		542
Accounts payable	474		549
Intercompany accounts payable	1,494		4,917
Accrued compensation	79		128
Other current liabilities	506		566
Total current liabilities	3,462		6,702
Noncurrent liabilities
Long-term debt	5,784		6,180
Pension liabilities	329		341
Other postretirement benefits liabilities	189		192
Deferred income taxes	1		0
Intercompany loans payable	4,621		3,808
Other noncurrent liabilities	345		314
Total noncurrent liabilities	11,269		10,835
Shareholders’ equity
Eaton shareholders' equity	5,244		6,662
Noncontrolling interests	0		0
Total equity	5,244		6,662
Total liabilities and equity	19,975		24,199
Eaton Corporation plc [Member]
Current assets
Cash	0		0	$ 0	$ 1
Short-term investments	0		0
Accounts receivable - net	0		0
Intercompany accounts receivable	1		8
Inventory	0		0
Prepaid expenses and other current assets	0		0
Total current assets	1		8
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	15,641		15,045
Intercompany loans receivables	3,121		3,122
Other assets	0		0
Total assets	18,763		18,175
Current liabilities
Short-term debt	0		0
Current portion of long-term debt	0		0
Accounts payable	0		0
Intercompany accounts payable	17		4
Accrued compensation	0		0
Other current liabilities	2		1
Total current liabilities	19		5
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	2,054		917
Other noncurrent liabilities	0		0
Total noncurrent liabilities	2,054		917
Shareholders’ equity
Eaton shareholders' equity	16,690		17,253
Noncontrolling interests	0		0
Total equity	16,690		17,253
Total liabilities and equity	$ 18,763		$ 18,175

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CONDENSED CONSOLIDATING FINANCIAL STATEMENTS - Condensed Consolidating Statements of Cash Flows (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Condensed Consolidating Statements of Cash Flows, Captions [Line Items]
Net cash provided by (used in) operating activities	$ 838	$ 1,037
Investing activities
Capital expenditures for property, plant and equipment	(280)	(246)
Sales (purchases) of short-term investments - net	284	(309)
Investments in affiliates	0	0
Return of capital contributions from affiliates		0
Loans to affiliates	0	0
Repayments of loans from affiliates	0	0
Other - net	(41)	(31)
Net cash provided by (used in) investing activities	(37)	(586)
Financing activities
Proceeds from borrowings	500	832
Payments on borrowings	(486)	(543)
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
Other intercompany financing activities	0	0
Cash dividends paid	(578)	(537)
Payments of Distributions to Affiliates	0	0
Exercise of employee stock options	21	49
Repurchase of shares	(600)	(465)
Payments Related to Tax Withholding for Share-based Compensation	(23)	(21)
Other - net	(2)	(4)
Net cash provided by (used in) financing activities	(1,168)	(689)
Effect of currency on cash	62	7
Total increase (decrease) in cash	(305)	(231)
Cash at the beginning of the period	561	543
Cash at the end of the period	256	312
Guarantors [Member]
Condensed Consolidating Statements of Cash Flows, Captions [Line Items]
Net cash provided by (used in) operating activities	103	969
Investing activities
Capital expenditures for property, plant and equipment	(51)	(56)
Sales (purchases) of short-term investments - net	0	0
Investments in affiliates	0	0
Return of capital contributions from affiliates		20
Loans to affiliates	(85)	(283)
Repayments of loans from affiliates	886	287
Other - net	1	(84)
Net cash provided by (used in) investing activities	751	(116)
Financing activities
Proceeds from borrowings	0	0
Payments on borrowings	(35)	(289)
Proceeds from borrowings from affiliates	50	694
Payments on borrowings from affiliates	(524)	(353)
Capital contributions from affiliates	0	90
Return of capital contributions to affiliates		0
Other intercompany financing activities	(348)	(196)
Cash dividends paid	0	0
Payments of Distributions to Affiliates	0	800
Exercise of employee stock options	0	0
Repurchase of shares	0	0
Payments Related to Tax Withholding for Share-based Compensation	(5)	(4)
Other - net	0	(1)
Net cash provided by (used in) financing activities	(862)	(859)
Effect of currency on cash	0	0
Total increase (decrease) in cash	(8)	(6)
Cash at the beginning of the period	18	12
Cash at the end of the period	10	6
Other subsidiaries [Member]
Condensed Consolidating Statements of Cash Flows, Captions [Line Items]
Net cash provided by (used in) operating activities	944	1,014
Investing activities
Capital expenditures for property, plant and equipment	(181)	(145)
Sales (purchases) of short-term investments - net	284	(309)
Investments in affiliates	0	(90)
Return of capital contributions from affiliates		0
Loans to affiliates	(3,563)	(3,570)
Repayments of loans from affiliates	3,110	3,035
Other - net	(19)	79
Net cash provided by (used in) investing activities	(369)	(1,000)
Financing activities
Proceeds from borrowings	19	21
Payments on borrowings	(1)	(4)
Proceeds from borrowings from affiliates	100	15
Payments on borrowings from affiliates	(759)	(75)
Capital contributions from affiliates	36	119
Return of capital contributions to affiliates		20
Other intercompany financing activities	(63)	484
Cash dividends paid	0	0
Payments of Distributions to Affiliates	(84)	(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	(1)	(3)
Net cash provided by (used in) financing activities	(756)	(173)
Effect of currency on cash	62	7
Total increase (decrease) in cash	(119)	(152)
Cash at the beginning of the period	360	438
Cash at the end of the period	241	286
Eaton Corporation plc [Member]
Condensed Consolidating Statements of Cash Flows, Captions [Line Items]
Net cash provided by (used in) operating activities	0	573
Investing activities
Capital expenditures for property, plant and equipment	0	0
Sales (purchases) of short-term investments - net	0	0
Investments in affiliates	0	(90)
Return of capital contributions from affiliates		0
Loans to affiliates	0	0
Repayments of loans from affiliates	0	0
Other - net	0	0
Net cash provided by (used in) investing activities	0	(90)
Financing activities
Proceeds from borrowings	0	0
Payments on borrowings	0	0
Proceeds from borrowings from affiliates	2,383	1,288
Payments on borrowings from affiliates	(1,226)	(819)
Capital contributions from affiliates	0	0
Return of capital contributions to affiliates		0
Other intercompany financing activities	0	0
Cash dividends paid	(578)	(537)
Payments of Distributions to Affiliates	0	0
Exercise of employee stock options	21	49
Repurchase of shares	(600)	(465)
Payments Related to Tax Withholding for Share-based Compensation	0	0
Other - net	0	0
Net cash provided by (used in) financing activities	0	(484)
Effect of currency on cash	0	0
Total increase (decrease) in cash	0	(1)
Cash at the beginning of the period	0	1
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	(125)	(12)
Investing activities
Capital expenditures for property, plant and equipment	(48)	(45)
Sales (purchases) of short-term investments - net	0	0
Investments in affiliates	(36)	(29)
Return of capital contributions from affiliates		0
Loans to affiliates	(100)	(17)
Repayments of loans from affiliates	507	291
Other - net	(23)	(26)
Net cash provided by (used in) investing activities	300	174
Financing activities
Proceeds from borrowings	481	811
Payments on borrowings	(450)	(250)
Proceeds from borrowings from affiliates	1,215	1,873
Payments on borrowings from affiliates	(1,994)	(2,366)
Capital contributions from affiliates	0	0
Return of capital contributions to affiliates		0
Other intercompany financing activities	411	(288)
Cash dividends paid	0	0
Payments of Distributions to Affiliates	0	0
Exercise of employee stock options	0	0
Repurchase of shares	0	0
Payments Related to Tax Withholding for Share-based Compensation	(15)	(14)
Other - net	(1)	0
Net cash provided by (used in) financing activities	(353)	(234)
Effect of currency on cash	0	0
Total increase (decrease) in cash	(178)	(72)
Cash at the beginning of the period	183	92
Cash at the end of the period	5	20
Consolidation, Eliminations [Member]
Condensed Consolidating Statements of Cash Flows, Captions [Line Items]
Net cash provided by (used in) operating activities	(84)	(1,507)
Investing activities
Capital expenditures for property, plant and equipment	0	0
Sales (purchases) of short-term investments - net	0	0
Investments in affiliates	36	209
Return of capital contributions from affiliates		(20)
Loans to affiliates	3,748	3,870
Repayments of loans from affiliates	(4,503)	(3,613)
Other - net	0	0
Net cash provided by (used in) investing activities	(719)	446
Financing activities
Proceeds from borrowings	0	0
Payments on borrowings	0	0
Proceeds from borrowings from affiliates	(3,748)	(3,870)
Payments on borrowings from affiliates	4,503	3,613
Capital contributions from affiliates	(36)	(209)
Return of capital contributions to affiliates		20
Other intercompany financing activities	0	0
Cash dividends paid	0	0
Payments of Distributions to Affiliates	84	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 provided by (used in) financing activities	803	1,061
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