10-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-K

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

For the year ended December 31, 2019

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)
Securities registered pursuant to Section 12(b) of the Act:
Title of each class		Trading Symbol		Name of each exchange on which registered
Ordinary shares ($0.01 par value)		ETN		New York Stock Exchange
Securities registered pursuant to Section 12(g) of the Act: None

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ☑ No ☐

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes ☐ No ☑

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 ☑ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted 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 such files). Yes ☑ No ☐

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	☑	Accelerated filer	☐	Non-accelerated filer	☐
Smaller reporting company	☐	Emerging growth 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. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes ☐ No ☑

The aggregate market value of Ordinary Shares held by non-affiliates of the registrant as of June 30, 2019 was $35.0 billion.

As of January 31, 2020, there were 413.4 million Ordinary Shares outstanding.

Documents Incorporated By Reference

Portions of the Proxy Statement for the 2020 annual shareholders meeting are incorporated by reference into Part III.

TABLE OF CONTENTS
Part I		2
Item 1.	Business	2
Item 1A.	Risk Factors	3
Item 1B.	Unresolved Staff Comments	5
Item 2.	Properties	5
Item 3.	Legal Proceedings	5
Item 4.	Mine Safety Disclosures	5
Item 4A.	Information about our Executive Officers	6
Part II		7
Item 5.	Market for the Registrant's Ordinary Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities	7
Item 6.	Selected Financial Data	8
Item 7.	Management's Discussion and Analysis of Financial Condition and Results of Operations	8
Item 7A.	Quantitative and Qualitative Disclosures about Market Risk	8
Item 8.	Financial Statements and Supplementary Data	8
Item 9.	Change in and Disagreements with Accountants on Accounting and Financial Disclosure	8
Item 9A.	Controls and Procedures	8
Item 9B.	Other Information	9
Part III		9
Item 10.	Directors, Executive Officers and Corporate Governance	9
Item 11.	Executive Compensation	9
Item 12.	Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters	9
Item 13.	Certain Relationships and Related Transactions, and Director Independence	9
Item 14.	Principal Accounting Fees and Services	10
Part IV		10
Item 15.	Exhibits, Financial Statement Schedules	10
Item 16.	Form 10-K Summary	14
SIGNATURES		15

Part I

Item 1. Business.

Eaton Corporation plc (Eaton or the Company) is a power management company with 2019 net sales of $21.4 billion. Eaton’s mission is to improve the quality of life and the environment through the use of power management technologies and services. We provide sustainable solutions that help our customers effectively manage electrical, hydraulic and mechanical power – more safely, more efficiently and more reliably. Eaton has approximately 101,000 employees in 60 countries and sells products to customers in more than 175 countries.

Eaton electronically files or furnishes reports pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (Exchange Act) to the United States Securities and Exchange Commission (SEC), including annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, and proxy and information statements, as well as any amendments to those reports. As soon as reasonably practicable, these reports are available free of charge through the Company's website at www.eaton.com. These filings are also accessible on the SEC's website at www.sec.gov.

Acquisitions and Divestitures of Businesses

Information regarding the Company's acquisitions and divestitures is presented in Note 2 of the Notes to the Consolidated Financial Statements.

Business Segment Information

Information by business segment regarding principal products, principal markets, methods of distribution and net sales is presented in Note 15 of the Notes to the Consolidated Financial Statements. Additional information regarding Eaton's segments and business is presented below.

Electrical Products and Electrical Systems and Services

Principal methods of competition in these segments are performance of products and systems, technology, customer service and support, and price. Eaton has a strong competitive position in these segments and, with respect to many products, is considered among the market leaders. In normal economic cycles, sales of these segments are historically lower in the first quarter and higher in the third and fourth quarters of a year. In 2019, 24% of these segments' sales were made to seven large distributors of electrical products and electrical systems and services.

Hydraulics

Principal methods of competition in this segment are product performance, geographic coverage, service, and price. Eaton has a strong competitive position in this segment and, with respect to many products, is considered among the market leaders. Sales of this segment are historically higher in the first and second quarters and lower in the third and fourth quarters of the year. In 2019, 13% of this segment's sales were made to five large original equipment manufacturers or distributors of agricultural, construction, and industrial equipment and parts.

Aerospace

Principal methods of competition in this segment are total cost of ownership, product and system performance, quality, design engineering capabilities, and timely delivery. Eaton has a strong competitive position in this segment and, with respect to many products and platforms, is considered among the market leaders. In 2019, 26% of this segment's sales were made to three large original equipment manufacturers of aircraft.

Vehicle

Principal methods of competition in this segment are product performance, technology, global service, and price. Eaton has a strong competitive position in this segment and, with respect to many products, is considered among the market leaders. In 2019, 61% of this segment's sales were made to ten large original equipment manufacturers of vehicles and related components.

eMobility

Principal methods of competition in this segment are product performance, technology, global service, and price. Eaton has a strong competitive position in this segment. In 2019, 23% of this segment's sales were made to five large original equipment manufacturers of vehicles, construction equipment and related components.

2

Information Concerning Eaton's Business in General

Raw Materials

Eaton's major requirements for raw materials include iron, steel, copper, nickel, aluminum, brass, tin, silver, lead, titanium, rubber, plastic, electronic components, chemicals and fluids. Materials are purchased in various forms, such as extrusions, castings, powder metal, metal sheets and strips, forging billets, bar stock, and plastic pellets. Raw materials, as well as parts and other components, are purchased from many suppliers. Under normal circumstances, the Company has no difficulty obtaining its raw materials. In 2019, Eaton maintained appropriate levels of inventory to prevent shortages and did not experience any availability constraints.

Patents and Trademarks

Eaton considers its intellectual property, including without limitation patents, trade names, domain names, trademarks, confidential information, and trade secrets to be of significant value to its business as a whole. The Company's products are manufactured, marketed and sold under a portfolio of patents, trademarks, licenses, and other forms of intellectual property, some of which expire in the future. Eaton develops and acquires new intellectual property on an ongoing basis and considers all of its intellectual property to be valuable. Based on the broad scope of the Company's product lines, management believes that the loss or expiration of any single intellectual property right would not have a material effect on Eaton's consolidated financial statements or its business segments. The Company's policy is to file applications and obtain patents for the majority of its novel and innovative new products including product modifications and improvements.

Order Backlog

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 orders, only the amount of orders to which customers are firmly committed are included. Using this criterion, total backlog at December 31, 2019 and 2018 was approximately $5.4 billion and $5.3 billion, respectively. Backlog should not be relied upon as being indicative of results of operations for future periods.

Environmental Contingencies

Operations of the Company involve the use and disposal of certain substances regulated under environmental protection laws. Eaton continues to modify processes on an ongoing, regular basis in order to reduce the impact on the environment, including the reduction or elimination of certain chemicals used in, and wastes generated from, operations. Compliance with laws that have been enacted or adopted regulating the discharge of materials into the environment, or otherwise relating to the protection of the environment, are not expected to have a material adverse effect upon earnings or the competitive position of the Company. Eaton's estimated capital expenditures for environmental control facilities are not expected to be material for 2020 and 2021. Information regarding the Company's liabilities related to environmental matters is presented in Note 8 of the Notes to the Consolidated Financial Statements.

Item 1A. Risk Factors.

Among the risks that could materially adversely affect Eaton's businesses, financial condition or results of operations are the following:

Volatility of end markets that Eaton serves.

Eaton's segment revenues, operating results, and profitability have varied in the past and may vary from quarter to quarter in the future. Profitability can be negatively impacted by volatility in the end markets that Eaton serves. The Company has undertaken measures to reduce the impact of this volatility through diversification of the markets it serves and expansion of the geographic regions in which it operates. Future downturns in any of the markets could adversely affect revenues, operating results, and profitability.

Eaton's operating results depend in part on continued successful research, development, and marketing of new and/or improved products and services, and there can be no assurance that Eaton will continue to successfully introduce new products and services or maintain its present market positions.

The success of new and improved products and services depends on their initial and continued acceptance by Eaton's customers. The Company's businesses are affected, to varying degrees, by technological change and corresponding shifts in customer demand, which could result in unpredictable product transitions or shortened life cycles. Eaton may experience difficulties or delays in the research, development, production, or marketing of new products and services which may prevent Eaton from recouping or realizing a return on the investments required to bring new products and services to market. The Company's market positions may also be impacted by new entrants into Eaton's product or regional markets.

3

Eaton's operations depend on production facilities throughout the world, which subjects them to varying degrees of risk of disrupted production.

Eaton manages businesses with manufacturing facilities worldwide. The Company's manufacturing facilities and operations could be disrupted by a natural disaster, labor strike, war, political unrest, terrorist activity, economic upheaval, or public health concerns such as the spread of COVID-19. Some of these conditions are more likely in certain geographic regions in which Eaton operates. Any such disruption could cause delays in shipments of products and the loss of sales and customers, and insurance proceeds may not adequately compensate for losses.

If Eaton is unable to protect its information technology infrastructure against service interruptions, data corruption, cyber-based attacks or network security breaches, product or service offerings could be compromised or operations could be disrupted or data confidentiality lost.

Eaton relies on information technology networks and systems, including the Internet, to process, transmit and store electronic information, and to manage or support a variety of business processes and activities, including procurement, manufacturing, distribution, invoicing and collection. These technology networks and systems may be susceptible to damage, disruptions or shutdowns due to failures during the process of upgrading or replacing software, databases or components; power outages; hardware failures; or computer viruses. In addition, security breaches could result in unauthorized disclosure of confidential information. If these information technology systems suffer severe damage, disruption, breach, or shutdown, and business continuity plans do not effectively resolve the issues in a timely manner, there could be a negative impact on operating results or the Company may suffer financial or reputational damage. Further, Cyber-based risks could also include attacks targeting the security, integrity and/or reliability of the hardware, software and information installed, stored or transmitted in our products, including after the purchase of those products and when they are incorporated into third party products, facilities or infrastructure. Such attacks could result in disruptions to third party systems, unauthorized release of confidential or otherwise protected information and corruption of data (our own or that of third parties). Further, to a significant extent, the security of our customers’ systems depends on how those systems are protected, configured, updated and monitored, all of which are typically outside our control.

Eaton's global operations subject it to economic risk as Eaton's results of operations may be adversely affected by changes in government legislation, regulations and policies and currency fluctuations.

Operating globally subjects Eaton to changes in government regulations and policies in a large number of jurisdictions around the world, including those related to tariffs and trade barriers, investments, property ownership rights, taxation, data privacy, and exchange controls. Changes in the relative values of currencies occur from time to time and could affect Eaton's operating results. While the Company monitors exchange rate exposures and attempts to reduce these exposures through hedging activities, these risks could adversely affect operating results.

Further, existing free trade laws and regulations provide certain beneficial duties and tariffs for qualifying imports and exports, subject to compliance with the applicable classification and other requirements. Changes in laws or policies governing the terms of foreign trade, and in particular increased trade restrictions, tariffs or taxes on imports from countries where we manufacture products could have an impact on our business and financial results.

Eaton may be subject to risks relating to changes in its tax rates or exposure to additional income tax liabilities.

Eaton is subject to income taxes in many jurisdictions around the world. Income tax liabilities are subject to the allocation of income among various tax jurisdictions. The Company's effective tax rate could be affected by changes in the mix among earnings in countries with differing statutory tax rates, changes in the valuation allowance of deferred tax assets, or changes in tax legislation, regulations, and policies. The amount of income taxes paid is subject to ongoing audits by tax authorities in the countries in which Eaton operates. If these audits result in assessments different from amounts reserved, future financial results may include unfavorable adjustments to the Company's tax liabilities.

Eaton uses a variety of raw materials and components in its businesses, and significant shortages, price increases, or supplier insolvencies could increase operating costs and adversely impact the competitive positions of Eaton's products.

Eaton's major requirements for raw materials are described above in Item 1 “Raw Materials”. Significant shortages could affect the prices Eaton's businesses are charged and the competitive position of their products and services, all of which could adversely affect operating results.

Further, Eaton's suppliers of component parts may increase their prices in response to increases in costs of raw materials that they use to manufacture component parts. The Company may not be able to increase its prices commensurately with its increased costs, adversely affecting operating results.

4

Eaton may be unable to adequately protect its intellectual property rights, which could affect the Company's ability to compete.

Protecting Eaton's intellectual property rights is critical to its ability to compete and succeed. The Company owns a large number of patents and patent applications worldwide, as well as trademark and copyright registrations that are necessary, and contribute significantly, to the preservation of Eaton's competitive position in various markets. Although management believes that the loss or expiration of any single intellectual property right would not have a material effect on the results of operations or financial position of Eaton or its business segments, there can be no assurance that any one, or more, of these patents and other intellectual property will not be challenged, invalidated, or circumvented by third parties. Eaton enters into confidentiality and invention assignment agreements with the Company's employees, and into non-disclosure agreements with suppliers and appropriate customers, so as to limit access to and disclosure of proprietary information. These measures may not suffice to deter misappropriation or independent third party development of similar technologies.

Eaton is subject to litigation and environmental regulations that could adversely impact Eaton's businesses.

At any given time, Eaton may be subject to litigation, the disposition of which may have a material adverse effect on the Company's businesses, financial condition or results of operations. Information regarding current legal proceedings is presented in Note 8 and Note 9 of the Notes to the Consolidated Financial Statements.

Item 1B. Unresolved Staff Comments.

None.

Item 2. Properties.

Eaton's principal executive offices are located at Eaton House, 30 Pembroke Road, Dublin 4, Ireland D04 Y0C2. The Company maintains manufacturing facilities at approximately 284 locations in 41 countries. The Company is a lessee under a number of operating leases for certain real properties and equipment, none of which is material to its operations. Management believes that the existing manufacturing facilities are adequate for its operations and that the facilities are maintained in good condition.

Item 3. Legal Proceedings.

Information regarding the Company's current legal proceedings is presented in Note 8 and Note 9 of the Notes to the Consolidated Financial Statements.

Item 4. Mine Safety Disclosures.

Not applicable.

5

Item 4A. Information about our Executive Officers

A listing of executive officers, their ages, positions and offices held over the past five years, as of February 1, 2020, follows:

Name	Age	Position (Date elected to position)
Craig Arnold	59	Chairman of Eaton Corporation plc (June 1, 2016 - present)
		Chief Executive Officer of Eaton Corporation (June 1, 2016 - present)
		Director of Eaton Corporation plc (September 1, 2015 - present)
		President and Chief Operating Officer of Eaton Corporation
		(September 1, 2015 - May 31, 2016)
		Vice Chairman and Chief Operating Officer - Industrial Sector of Eaton Corporation
		(February 1, 2009 - August 31, 2015)
Richard H. Fearon	63	Director of Eaton Corporation plc (September 1, 2015 - present)
		Vice Chairman and Chief Financial and Planning Officer of Eaton Corporation
		(April 24, 2002 - present)
Uday Yadav	56	President and Chief Operating Officer - Electrical Sector of Eaton Corporation
		(July 1, 2019 - present)
		Chief Operating Officer - Industrial Sector of Eaton Corporation
		(September 1, 2015 - June 30, 2019)
		President of Aerospace Group of Eaton Corporation
		(August 1, 2012 - August 31, 2015)
Heath B. Monesmith	49	President and Chief Operating Officer - Industrial Sector of Eaton Corporation
		(July 1, 2019 - present)
		Executive Vice President and General Counsel of Eaton Corporation
		(March 1, 2017 - January 6, 2020)
		Senior Vice President and Deputy General Counsel of Eaton Corporation
		(May 15, 2015 - March 1, 2017)
		Vice President and Chief Counsel - Litigation of Eaton Corporation
		(November 30, 2012 - May 15, 2015)
April Miller Boise	51	Executive Vice President, General Counsel and Secretary of Eaton Corporation
		(January 6, 2020 - present)
		Senior Vice President, Chief Legal Officer and Corporate Secretary of Meritor, Inc.
		(August 15, 2016 - December 13, 2019)
		Senior Vice President, General Counsel, Head of Global Mergers and Acquisitions,
		and Corporate Secretary of Avintiv, Inc. (March 23, 2015 - December 31, 2015)
		Vice President, General Counsel, Corporate Secretary and Chief Privacy Officer of
		Veyance Technologies, Inc. (January 1, 2011 - January 30, 2015)
Ernest W. Marshall, Jr.	51	Executive Vice President and Chief Human Resources Officer of Eaton Corporation
		(July 1, 2018 - present)
		Vice President - Human Resources, Aviation Division of General Electric
		(August 1, 2013 - June 30, 2018)
Ken D. Semelsberger	58	Senior Vice President and Controller of Eaton Corporation
		(November 1, 2013 - present)

6

Joao V. Faria	55	President - Vehicle Group of Eaton Corporation (May 1, 2017 - present)
		Vice President and General Manager, Latin America, Electrical Sector and
		President, Latin America (August 1, 2013 - April 30, 2017)
Nandakumar Cheruvatath	58	President - Aerospace Group of Eaton Corporation (September 1, 2015 - present)
		Executive Vice President, Eaton Business System (August 1, 2012 - August 31, 2015)
Paulo Ruiz Sternadt	45	President - Hydraulics Group of Eaton Corporation (April 1, 2019 - present)
		Chief Executive Officer - Dresser Rand, a Siemens business
		(October 19, 2017 - March 30, 2019)
		Executive Vice President - Global Solutions and New Technologies & Strategic
		Business Development of Dresser Rand, a Siemens business
		(April 1, 2016 - October 18, 2017)
		Global Segment Head - Business Segment Bushings, Instrument Transformers & Coils,
		Siemens AG (April 1, 2012 - March 30, 2016)
Brian S. Brickhouse	56	President - Americas Region, Electrical Sector of Eaton Corporation
		(July 1, 2019 - present)
		President - Electrical Systems and Services Group of Eaton Corporation
		(July 1, 2018 - June 30, 2019)
		President, Asia Pacific Region, Electrical (May 15, 2015 - June 30, 2018)
		President, Power Quality Division, Electrical Sector - Americas
		(August 15, 2012 - May 14, 2015)

There are no family relationships among the officers listed, and there are no arrangements or understandings pursuant to which any of them were elected as officers. All officers hold office for one year and until their successors are elected and qualified, unless otherwise specified by the Board of Directors; provided, however, that any officer is subject to removal with or without cause, at any time, by a vote of a majority of the Board of Directors.

Part II

Item 5. Market for the Registrant's Ordinary Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities.

The Company's ordinary shares are listed for trading on the New York Stock Exchange under the symbol ETN. At December 31, 2019, there were 12,072 holders of record of the Company's ordinary shares. Additionally, 17,699 current and former employees were shareholders through participation in the Eaton Savings Plan (ESP), the Eaton Personal Investment Plan (EPIP), and the Eaton Puerto Rico Retirement Savings Plan.

Information regarding equity-based compensation plans required by Regulation S-K Item 201(d) is provided in Item 12 of this Form 10-K Report.

Irish Taxes Applicable to Dividends

Irish income tax may arise with respect to dividends paid on Eaton shares. Eaton may be required to deduct Irish dividend withholding tax (“IDWT”, currently at a rate of 25%) from dividends paid to shareholders who are not tax residents of Ireland even though they are not be subject to this tax. To claim exemption from IDWT, shareholders can complete certain Irish dividend withholding tax exemption forms or hold their shares in an account through the Depository Trust Company and have on file with their broker or qualifying agent a valid U.S. address on the record date of the dividend.

Eaton shareholders who receive their dividends subject to Irish dividend withholding tax will generally have no further liability for Irish income tax on the dividends unless they are otherwise subject to Irish income tax.

7

Issuer's Purchases of Equity Securities

During the fourth quarter of 2019, 0.6 million ordinary shares were repurchased in the open market at a total cost of $51. A summary of the shares repurchased in the fourth quarter of 2019 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)
October	—	$	—	—	$	3,753
November	545,499	$	90.17	545,499	$	3,704
December	19,838	$	91.23	19,838	$	3,702
Total	565,337	$	90.21	565,337

Item 6. Selected Financial Data.

Information regarding selected financial data is presented in the “Five-Year Consolidated Financial Summary” of this Form 10-K.

Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations.

Information required by this Item is presented in “Management's Discussion and Analysis of Financial Condition and Results of Operations” of this Form 10-K.

Item 7A. Quantitative and Qualitative Disclosures about Market Risk.

Information regarding market risk is presented in “Market Risk Disclosure” of this Form 10-K.

Item 8. Financial Statements and Supplementary Data.

The reports of the independent registered public accounting firm, consolidated financial statements, and notes to consolidated financial statements are presented in Item 15 of this Form 10-K.

Information regarding selected quarterly financial information for 2019 and 2018 is presented in “Quarterly Data” of this Form 10-K.

Item 9. Change in and Disagreements with Accountants on Accounting and Financial Disclosure.

None.

Item 9A. 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, Eaton's management concluded that the Company's disclosure controls and procedures were effective as of December 31, 2019.

Disclosure controls and procedures are designed to ensure that information required to be disclosed in Company 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 Company reports filed under the Exchange Act is accumulated and communicated to management, including the Company's Principal Executive Officer and Principal Financial Officer, to allow timely decisions regarding required disclosure.

8

Pursuant to Section 404 of the Sarbanes Oxley Act of 2002 and the rules and regulations adopted pursuant thereto, Eaton has included a report of management's assessment of the effectiveness of internal control over financial reporting, which is included in Item 15 of this Form 10-K.

“Report of Independent Registered Public Accounting Firm” relating to internal control over financial reporting as of December 31, 2019 is included in Item 15 of this Form 10-K.

During the fourth quarter of 2019, 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. Management is currently evaluating the impact of businesses acquired in 2019 on Eaton's internal control over financial reporting.

Item 9B. Other Information.

None.

Part III

Item 10. Directors, Executive Officers and Corporate Governance.

Information required with respect to the directors of the Company is set forth under the caption “Election of Directors” in the Company's definitive Proxy Statement to be filed on or about March 13, 2020, and is incorporated by reference.

The Company has adopted a Code of Ethics, which applies to the directors, officers and employees worldwide. This document is available on the Company's website at http://www.eaton.com.

There were no changes during the fourth quarter 2019 to the procedures by which security holders may recommend nominees to the Company's Board of Directors.

Information related to the Audit Committee, and members of the Committee who are financial experts, is set forth under the caption “Board Committees - Audit Committee” in the definitive Proxy Statement to be filed on or about March 13, 2020, and is incorporated by reference.

Item 11. Executive Compensation.

Information required with respect to executive compensation is set forth under the caption “Compensation Discussion and Analysis” in the Company's definitive Proxy Statement to be filed on or about March 13, 2020, and is incorporated by reference.

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters.

Information required with respect to securities authorized for issuance under equity-based compensation plans is set forth under the caption “Equity Compensation Plans” in the Company's definitive Proxy Statement to be filed on or about March 13, 2020, and is incorporated by reference.

Information required with respect to security ownership of certain beneficial owners, is set forth under the caption “Share Ownership Tables” in the Company's definitive Proxy Statement to be filed on or about March 13, 2020, and is incorporated by reference.

Item 13. Certain Relationships and Related Transactions, and Director Independence.

Information required with respect to certain relationships and related transactions is set forth under the caption “Review of Related Person Transactions” in the Company's definitive Proxy Statement to be filed on or about March 13, 2020, and is incorporated by reference.

Information required with respect to director independence is set forth under the caption “Director Independence” in the Company's definitive Proxy Statement to be filed on or about March 13, 2020, and is incorporated by reference.

9

Item 14. Principal Accounting Fees and Services.

Information required with respect to principal accountant fees and services is set forth under the caption “Audit Committee Report” in the Company's definitive Proxy Statement to be filed on or about March 13, 2020, and is incorporated by reference.

Part IV

Item 15. Exhibits, Financial Statement Schedules.

(a) (1) The reports of the independent registered public accounting firm, consolidated financial statements and notes to consolidated financial statements are included in Item 8 above:

Reports of Independent Registered Public Accounting Firm

Consolidated Statements of Income - Years ended December 31, 2019, 2018 and 2017

Consolidated Statements of Comprehensive Income - Years ended December 31, 2019, 2018 and 2017

Consolidated Balance Sheets - December 31, 2019 and 2018

Consolidated Statements of Cash Flows - Years ended December 31, 2019, 2018 and 2017

Consolidated Statements of Shareholders' Equity - Years ended December 31, 2019, 2018 and 2017

Notes to Consolidated Financial Statements

(2) All other schedules for which provision is made in Regulation S-X of the SEC are not required under the related instructions or are inapplicable and, therefore, have been omitted.

(3) Exhibits incorporated by reference to or filed in conjunction with this form 10-K are listed below.

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 Report filed on May 1, 2017
4.1	Description of Eaton Corporation plc’s Securities registered pursuant to Section 12 of the Securities Exchange Act of 1934 - Filed in conjunction with this Form 10-K Report *
4.2	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))
4.3	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)
4.4	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 to Exhibit 4.3 of the registrant's Form S-4 filed on September 6, 2013)
4.5	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 to Exhibit 4.4 of the registrant's Form 10-K filed on February 28, 2018)
4.6	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 to Exhibit 4.5 of the registrant's Form 10-K filed on February 28, 2018)
4.7	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 to Exhibit 4.6 of the registrant's Form 10-K filed on February 28, 2018)
4.8	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 (4.2 - 4.7) hereto
10	Material contracts

10

(a)	Senior Executive Incentive Compensation Plan (effective February 27, 2013) - Incorporated by reference to the Form 10-K Report for the year ended December 31, 2012
(b)	Deferred Incentive Compensation Plan II - Incorporated by reference to the Form 10-K Report for the year ended December 31, 2007
(c)	First Amendment to Deferred Incentive Compensation Plan II - Incorporated by reference to the Form S-8 filed November 30, 2012
(d)	Excess Benefits Plan II (2008 restatement) - Incorporated by reference to the Form 10-K Report for the year ended December 31, 2007
(e)	First Amendment to Excess Benefits Plan II (2008 restatement) - Incorporated by reference to the Form 10-K Report for the year ended December 31, 2012
(f)	Incentive Compensation Deferral Plan II - Incorporated by reference to the Form 10-K Report for the year ended December 31, 2007
(g)	First Amendment to Incentive Compensation Deferral Plan II - Incorporated by reference to the Form S-8 filed November 30, 2012
(h)	Limited Eaton Service Supplemental Retirement Income Plan II - Incorporated by reference to the Form 10-K Report for the year ended December 31, 2007
(i)	First Amendment to Limited Eaton Service Supplemental Retirement Income Plan II - Incorporated by reference to the Form 10-K Report for the year ended December 31, 2012
(j)	Supplemental Benefits Plan II (2008 restatement) - Incorporated by reference to the Form 10-K Report for the year ended December 31, 2007
(k)	First Amendment to Supplemental Benefits Plan II (2008 restatement) - Incorporated by reference to the Form 10-K Report for the year ended December 31, 2012
(l)	Form of Restricted Share Unit Agreement - Incorporated by reference to the Form 10-K Report for the year ended December 31, 2015
(m)	Form of Restricted Share Award Agreement - Incorporated by reference to the Form 10-K Report for the year ended December 31, 2015
(n)	Form of Restricted Share Agreement (Non-Employee Directors) - Incorporated by reference to the Form 8-K Report filed February 1, 2010
(o)	Form of Directors' Restricted Share Unit Agreement - Incorporated by reference to the Form 10-K report for the year ended December 31, 2012
(p)	Form of Stock Option Agreement for Executives - Incorporated by reference to the Form 10-K Report for the year ended December 31, 2015
(q)	Form of Stock Option Agreement for Non-Employee Directors (2008) - Incorporated by reference to the Form 10-K Report for the year ended December 31, 2007
(r)	Amended and Restated 2002 Stock Plan - Incorporated by reference to the Form S-8 filed November 30, 2012
(s)	Amended and Restated 2004 Stock Plan - Incorporated by reference to the Form S-8 filed November 30, 2012
(t)	Amended and Restated 2008 Stock Plan - Incorporated by reference to the Form S-8 filed November 30, 2012
(u)	Second Amended and Restated 2009 Stock Plan - Incorporated by reference to Form S-8 filed November 30, 2012
(v)	Amended and Restated 2012 Stock Plan - Incorporated by reference to the Form S-8 filed November 30, 2012
(w)	Amendment to Amended and Restated 2012 Stock Plan - Incorporated by reference to the Form 10-K Report for the year ended December 31, 2012
(x)	First Amendment to 2005 Non-Employee Director Fee Deferral Plan - Incorporated by reference to the Form S-8 filed November 30, 2012

11

(y)	2013 Non-Employee Director Fee Deferral Plan - Incorporated by reference to the Form 10-K Report for the year ended December 31, 2012
(z)	2015 Stock Plan - Incorporated by reference to the Form S-8 filed on October 30, 2015
(aa)	Form of Change of Control Agreement entered into with officers of Eaton Corporation - Incorporated by reference to the Form 8-K Report filed on December 17, 2015
(bb)	Form of Indemnification Agreement entered into with directors - Incorporated by reference to the Form 10-K Report for the year ended December 31, 2012
(cc)	Form of Indemnification Agreement II entered into with directors - Incorporated by reference to the Form 10-K Report for the year ended December 31, 2012
(dd)	Amended and Restated Executive Strategic Incentive Plan (amended and restated February 27, 2013) - Incorporated by reference to the Form 10-K Report for the year ended December 31, 2012
(ee)	Executive Strategic Incentive Plan II (effective January 1, 2001) - Incorporated by reference to the Form 10-K Report for the year ended December 31, 2002
(ff)	Amended and Restated Supplemental Executive Strategic Incentive Plan (amended and restated February 27, 2013) - Incorporated by reference to the Form 10-K Report for the year ended December 31, 2012
(gg)	Deferred Incentive Compensation Plan (amended and restated effective November 1, 2007) - Incorporated by reference to the Form 10-K Report for the year ended December 31, 2009
(hh)	Excess Benefits Plan (amended and restated effective January 1, 1989) - Incorporated by reference to the Form 10-K Report for the year ended December 31, 2002
(ii)	Amendment to Excess Benefits Plan I - Incorporated by reference to the Form 10-K Report for the year ended December 31, 2012
(jj)	Supplemental Benefits Plan (amended and restated January 1, 1989) - Incorporated by reference to the Form 10-K Report for the year ended December 31, 2002
(kk)	Amendment to Supplemental Benefits Plan I - Incorporated by reference to the Form 10-K Report for the year ended December 31, 2012
(ll)	Eaton Corporation Board of Directors Policy on Incentive Compensation, Stock Options and Other Equity Grants upon the Restatement of Financial Results - Incorporated by reference to the Form 10-K Report for the year ended December 31, 2015
(mm)	Amended and Restated Grantor Trust Agreement for Non-Employee Directors’ Deferred Fees Plans - effective January 1, 2010 - Incorporated by reference to the Form 10-K Report for the year ended December 31, 2010
(nn)	Amended and Restated Grantor Trust Agreement for Employees’ Deferred Compensation Plans - effective January 1, 2010 - Incorporated by reference to the Form 10-K Report for the year ended December 31, 2010
(oo)	Eaton Savings Plan 2016 Restatement - Incorporated by reference to the Form 10-K Report for the year ended December 31, 2015
(pp)	Eaton Personal Investment Plan 2015 Restatement - Incorporated by reference to the Form 10-K Report for the year ended December 31, 2015
(qq)	Performance Share Award Agreement - Incorporated by reference to the Form 10-K Report for the year ended December 31, 2015
(rr)	Form of Indemnification Agreement entered into with officers of Eaton Corporation - Incorporated by reference to the Form 10-K Report for the year ended December 31, 2015
(ss)	Amendment to Limited Eaton Service Supplemental Retirement Income Plan I- Incorporated by reference to the Form 10-K Report for the year ended December 31, 2015
(tt)	First Amendment to Eaton Savings Plan - Incorporated by reference to the Form 10-K Report for the year ended December 31, 2016
(uu)	Second Amendment to Eaton Savings Plan - Incorporated by reference to the Form 10-K Report for the year ended December 31, 2016

12

	(vv)	First Amendment to Eaton Personal Investment Plan - Incorporated by reference to the Form 10-K Report for the year ended December 31, 2016
	(ww)	Second Amendment to Eaton Personal Investment Plan - Incorporated by reference to the Form 10-K Report for the year ended December 31, 2016
	(xx)	Amendment to Eaton Corporation Excess Benefits Plan - Incorporated by reference to the Form 10-K Report for the year ended December 31, 2016
	(yy)	Amendment to Eaton Corporation Supplemental Benefits Plan - Incorporated by reference to the Form 10-K Report for the year ended December 31, 2016
	(zz)	Second Amendment to Eaton Corporation Excess Benefits Plan II - Incorporated by reference to the Form 10-K Report for the year ended December 31, 2016
	(aaa)	Second Amendment to Limited Eaton Service Supplemental Retirement Income Plan II - Incorporated by reference to the Form 10-K Report for the year ended December 31, 2016
	(bbb)	Second Amendment to Eaton Corporation Supplemental Benefits Plan II - Incorporated by reference to the Form 10-K Report for the year ended December 31, 2016
	(ccc)	2016 RSU Grant Agreement - Incorporated by reference to the Form 10-K Report for the year ended December 31, 2016
	(ddd)	2016 Performance Share Grant Agreement - Incorporated by reference to the Form 10-K Report for the year ended December 31, 2016
	(eee)	Special 2016 Performance Share Grant Agreement - Incorporated by reference to the Form 10-K Report for the year ended December 31, 2016
	(fff)	Stock and Asset Purchase Agreement, dated January 21, 2020 - Incorporated by reference to the Form 8-K filed on January 27, 2020
14		Code of Ethics - Incorporated by reference to the definitive Proxy Statement filed on March 14, 2008
21		Subsidiaries of Eaton Corporation plc - Filed in conjunction with this Form 10-K Report *
23		Consent of Independent Registered Public Accounting Firm - Filed in conjunction with this Form 10-K Report *
24		Power of Attorney - Filed in conjunction with this Form 10-K Report *
31.1		Certification of Principal Executive Officer (Pursuant to the Sarbanes-Oxley Act of 2002, Section 302) - Filed in conjunction with this Form 10-K Report *
31.2		Certification of Principal Financial Officer (Pursuant to the Sarbanes-Oxley Act of 2002, Section 302) - Filed in conjunction with this Form 10-K Report *
32.1		Certification of Principal Executive Officer (Pursuant to the Sarbanes-Oxley Act of 2002, Section 906) - Filed in conjunction with this Form 10-K Report *
32.2		Certification of Principal Financial Officer (Pursuant to the Sarbanes-Oxley Act of 2002, Section 906) - Filed in conjunction with this Form 10-K Report *
101.INS		XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. *
101.SCH		XBRL Taxonomy Extension Schema Document *
101.CAL		XBRL Taxonomy Extension Calculation Linkbase Document *
101.DEF		XBRL Taxonomy Extension Definition Linkbase Document *
101.LAB		XBRL Taxonomy Extension Label Linkbase Document *
101.PRE		XBRL Taxonomy Extension Presentation Linkbase Document *
104		Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101)

_______________________________

13

* 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 years ended December 31, 2019, 2018 and 2017, (ii) Consolidated Statements of Comprehensive Income for the years ended December 31, 2019, 2018 and 2017 (iii) Consolidated Balance Sheets at December 31, 2019 and 2018, (iv) Consolidated Statements of Cash Flows for the years ended December 31, 2019, 2018 and 2017, (v) Consolidated Statements of Shareholders' Equity for the years ended December 31, 2019, 2018 and 2017 and (vi) Notes to Consolidated Financial Statements for the year ended December 31, 2019.

Item 16. Form 10-K Summary.

Not applicable.

14

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:	February 26, 2020	By:	/s/ Richard H. Fearon
			Richard H. Fearon
			(On behalf of the registrant and as Principal Financial Officer)

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the date indicated.

Date: February 26, 2020

Signature	Title
/s/ Craig Arnold		/s/ Richard H. Fearon
Craig Arnold	Chairman, Principal Executive Officer; Director	Richard H. Fearon	Principal Financial Officer, Director
/s/ Ken D. Semelsberger		*
Ken D. Semelsberger	Principal Accounting Officer	Todd M. Bluedorn	Director
*		*
Christopher M. Connor	Director	Michael J. Critelli	Director
*		*
Olivier Leonetti	Director	Deborah L. McCoy	Director
*		/s/ Gregory R. Page
Silvio Napoli	Director	Gregory R. Page	Director
*		*
Sandra Pianalto	Director	Gerald B. Smith	Director
*
Dorothy C. Thompson	Director

*By	/s/ Richard H. Fearon
	Richard H. Fearon, Attorney-in-Fact for the officers and directors signing in the capacities indicated

15

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Shareholders and the Board of Directors of Eaton Corporation plc

Opinion on the Financial Statements

We have audited the accompanying consolidated balance sheets of Eaton Corporation plc (“the Company”) as of December 31, 2019 and 2018, the related consolidated statements of income, comprehensive income, shareholders’ equity and cash flows for each of the three years in the period ended December 31, 2019, and the related notes (collectively referred to as the “consolidated financial statements”). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company at December 31, 2019 and 2018, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2019, in conformity with U.S. generally accepted accounting principles.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company's internal control over financial reporting as of December 31, 2019, based on criteria established in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework) and our report dated February 26, 2020 expressed an unqualified opinion thereon.

Basis for Opinion

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company’s financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

Critical Audit Matters

The critical audit matters communicated below are matters arising from the current period audit of the consolidated financial statements that were communicated or required to be communicated to the audit committee and that: (1) relate to accounts or disclosures that are material to the consolidated financial statements and (2) involved our especially challenging, subjective or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate.

16

	Unrecognized Income Tax Benefits
Description of the Matter	As discussed in Note 9 to the consolidated financial statements, the Company had gross unrecognized income tax benefits of $1,001 million related to its uncertain tax positions at December 31, 2019. Unrecognized income tax benefits are recorded under the two-step recognition and measurement principles when a tax position does not meet the more likely than not standard, or if a tax position meets the more likely than not standard, but the financial statement tax benefit is reduced as part of the measurement step. The balance of unrecognized income tax benefits is comprised of uncertain tax positions which meet the more likely than not standard, but the financial statement tax benefit has been reduced as part of measuring the tax position. Auditing management’s analysis of its uncertain tax positions and resulting unrecognized income tax benefits is complex as each tax position carries unique facts and circumstances that must be evaluated and ultimate resolution is dependent on uncontrollable factors such as the prospect of retroactive regulations, new case law, the willingness of the income tax authority to settle the issue, including the timing thereof; and other factors.
How We Addressed the Matter in Our Audit	We obtained an understanding, evaluated the design and tested the operating effectiveness of management’s controls related to uncertain tax positions. For example, we tested controls over management’s application of the two-step recognition and measurement principles and management’s review of the inputs and resultant calculations of unrecognized income tax benefits, as well as the identification of uncertain tax positions. We also evaluated the Company’s assessment of its uncertain tax positions. Our audit procedures included evaluating management’s accounting policies and documentation to assess the appropriateness and consistency of the methods and assumptions used to develop its uncertain tax positions and related unrecognized income tax benefit amounts by jurisdiction. We also tested the completeness and accuracy of the underlying data used by the Company. For example, we compared the unrecognized income tax benefits recorded with similar positions in prior periods and assessed management’s consideration of current tax controversy and litigation and trends in similar positions challenged by tax authorities. We also assessed the historical accuracy of management’s estimates of its unrecognized income tax benefits with the resolution of those positions. In addition, we involved tax subject matter professionals to evaluate the application of relevant tax laws in the Company’s recognition determination. Further, we tested the Company’s release of previously recorded unrecognized income tax benefits, which along with the recording of additional unrecognized tax benefits, impacts the Company’s tax provision. We have also evaluated the Company’s income tax disclosures in relation to these matters.

17

	Reallocation of Goodwill related to the Divestiture of the Lighting Business
Description of the Matter	In October 2019, the Company announced the planned sale of its lighting, lighting controls and connected lighting solutions business (collectively referred to as “Lighting”) as discussed further in Notes 2 and 4 to the consolidated financial statements and classified Lighting as held for sale. In conjunction with the classification of Lighting as held for sale, management reassigned goodwill to the Lighting business and the impacted reporting unit using a relative fair value allocation. Goodwill of $470 million was allocated as part of classifying Lighting assets as held for sale in the fourth quarter. Auditing the Company's allocation of goodwill to the Lighting business was complex due to the significant estimation required to determine the fair value of Lighting and the impacted reporting unit. The fair value estimates were sensitive to significant assumptions such as the weighted average cost of capital, revenue growth rates, operating margins, and perpetual growth rates, which are affected by expectations about future market or economic conditions.
How We Addressed the Matter in Our Audit	We obtained an understanding, evaluated the design and tested the operating effectiveness of management’s controls over the goodwill allocation process. For example, we tested controls over management’s review of the significant assumptions described above along with the completeness and accuracy of the data used in the fair value estimates. To test the estimated fair value of Lighting and the Company’s impacted reporting unit, our audit procedures included, among others, evaluating the Company’s fair value methodology, testing the significant assumptions discussed above and testing the underlying data used by the Company in its analysis. For example, we compared the significant assumptions used by management to current industry and economic trends. We assessed the historical accuracy of management’s estimates and performed sensitivity analyses of significant assumptions to evaluate the changes in the fair value of Lighting and the impacted reporting unit that would result from changes in assumptions. We also involved a valuation specialist to assist in our evaluation of the weighted average cost of capital. We tested the allocation of goodwill by recalculating the amounts based on the estimated fair value of Lighting and the impacted reporting unit.

/s/ Ernst & Young LLP

We have served as the Company’s auditor since 1923.

Cleveland, Ohio

February 26, 2020

18

MANAGEMENT'S REPORT ON FINANCIAL STATEMENTS

We have prepared the accompanying consolidated financial statements and related information of Eaton Corporation plc ("Eaton") included herein for the three years ended December 31, 2019. The primary responsibility for the integrity of the financial information included in this annual report rests with management. The financial information included in this annual report has been prepared in accordance with accounting principles generally accepted in the United States based on our best estimates and judgments and giving due consideration to materiality. The opinion of Ernst & Young LLP, Eaton's independent registered public accounting firm, on those consolidated financial statements is included herein.

Eaton has high standards of ethical business practices supported by the Eaton Code of Ethics and corporate policies. Careful attention is given to selecting, training and developing personnel, to ensure that management's objectives of establishing and maintaining adequate internal controls and unbiased, uniform reporting standards are attained. Our policies and procedures provide reasonable assurance that operations are conducted in conformity with applicable laws and with the Company's commitment to a high standard of business conduct.

The Board of Directors pursues its responsibility for the quality of Eaton's financial reporting primarily through its Audit Committee, which is composed of five independent directors. The Audit Committee meets regularly with management, the internal auditors and the independent registered public accounting firm to ensure that they are meeting their responsibilities and to discuss matters concerning accounting, internal control, audits and financial reporting. The internal auditors and independent registered public accounting firm have full and free access to senior management and the Audit Committee.

/s/ Craig Arnold	/s/ Richard H. Fearon	/s/ Ken D. Semelsberger
Principal Executive Officer	Principal Financial Officer	Principal Accounting Officer
February 26, 2020

19

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Shareholders and the Board of Directors of Eaton Corporation plc

Opinion on Internal Control Over Financial Reporting

We have audited Eaton Corporation plc’s (“the Company”) internal control over financial reporting as of December 31, 2019, based on criteria established in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework) (the COSO criteria). In our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2019, based on the COSO criteria.

As indicated in the accompanying Management’s Report on Internal Control over Financial Reporting, management’s assessment of and conclusion on the effectiveness of internal control over financial reporting did not include the internal controls of entities that were acquired during 2019 (as defined in Note 2 to the consolidated financial statements), which are included in the 2019 consolidated financial statements of the Company and constituted 5% of total assets (inclusive of acquired intangible assets) as of December 31, 2019 and less than 1% of net sales for the year then ended. Our audit of internal control over financial reporting of the Company also did not include an evaluation of the internal control over financial reporting of entities that were acquired during 2019.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated balance sheets of the Company as of December 31, 2019 and 2018, the related consolidated statements of income, comprehensive income, shareholders’ equity and cash flows for each of the three years in the period ended December 31, 2019, and the related notes and our report dated February 26, 2020 expressed an unqualified opinion thereon.

Basis for Opinion

The Company’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting included in the accompanying Management’s Report on Internal Control Over Financial Reporting. Our responsibility is to express an opinion on the Company’s internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects.

Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.

Definition and Limitations of Internal Control Over Financial Reporting

A company’s internal control over financial reporting is a process designed 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. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

/s/ Ernst & Young LLP

Cleveland, Ohio

February 26, 2020

20

MANAGEMENT'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING

The management of Eaton Corporation plc ("Eaton") is responsible for establishing and maintaining adequate internal control over financial reporting (as defined in Exchange Act rules 13a-15(f)).

Under the supervision and with the participation of Eaton's management, including our principal executive officer and principal financial officer, we conducted an evaluation of the effectiveness of the Company's internal control over financial reporting as of December 31, 2019. Our evaluation of internal control over financial reporting did not include the internal controls of entities that were acquired during 2019 (as defined in Note 2), which are included in the 2019 consolidated financial statements and constituted approximately 5% of total assets (inclusive of acquired intangible assets) as of December 31, 2019 and less than 1% of net sales for the year then ended. In conducting this evaluation, we used the framework set forth by the Committee of Sponsoring Organizations of the Treadway Commission in Internal Control - Integrated Framework (2013 Framework). Based on this evaluation under the framework referred to above, management concluded that the Company's internal control over financial reporting was effective as of December 31, 2019.

The independent registered public accounting firm Ernst & Young LLP has issued an audit report on the effectiveness of the Company's internal control over financial reporting as of December 31, 2019. This report is included herein.

/s/ Craig Arnold	/s/ Richard H. Fearon	/s/ Ken D. Semelsberger
Principal Executive Officer	Principal Financial Officer	Principal Accounting Officer
February 26, 2020

21

EATON CORPORATION plc

CONSOLIDATED STATEMENTS OF INCOME

	Year ended December 31
(In millions except for per share data)	2019			2018			2017
Net sales	$	21,390		$	21,609		$	20,404
Cost of products sold	14,338			14,511			13,756
Selling and administrative expense	3,583			3,548			3,526
Research and development expense	606			584			584
Interest expense - net	236			271			246
Gain on sale of business	—			—			1,077
Arbitration decision expense	—			275			—
Other expense (income) - net	36			(4		)	1
Income before income taxes	2,591			2,424			3,368
Income tax expense	378			278			382
Net income	2,213			2,146			2,986
Less net income for noncontrolling interests	(2		)	(1		)	(1		)
Net income attributable to Eaton ordinary shareholders	$	2,211		$	2,145		$	2,985
Net income per share attributable to Eaton ordinary shareholders
Diluted	$	5.25		$	4.91		$	6.68
Basic	5.28			4.93			6.71
Weighted-average number of ordinary shares outstanding
Diluted	420.8			436.9			447.0
Basic	419.0			434.3			444.5
Cash dividends declared per ordinary share	$	2.84		$	2.64		$	2.40

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

22

EATON CORPORATION plc

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

	Year ended December 31
(In millions)	2019			2018			2017
Net income	$	2,213		$	2,146		$	2,986
Less net income for noncontrolling interests	(2		)	(1		)	(1		)
Net income attributable to Eaton ordinary shareholders	2,211			2,145			2,985
Other comprehensive income (loss), net of tax
Currency translation and related hedging instruments	16			(609		)	807
Pensions and other postretirement benefits	(130		)	(139		)	241
Cash flow hedges	(31		)	7			(4		)
Other comprehensive income (loss) attributable to Eaton    ordinary shareholders	(145		)	(741		)	1,044
Total comprehensive income attributable to Eaton ordinary shareholders	$	2,066		$	1,404		$	4,029

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

23

EATON CORPORATION plc

CONSOLIDATED BALANCE SHEETS

	December 31
(In millions)	2019			2018
Assets
Current assets
Cash	$	370		$	283
Short-term investments	221			157
Accounts receivable - net	3,437			3,858
Inventory	2,805			2,785
Assets held for sale	1,377			—
Prepaid expenses and other current assets	518			507
Total current assets	8,728			7,590
Property, plant and equipment
Land and buildings	2,440			2,466
Machinery and equipment	6,266			6,106
Gross property, plant and equipment	8,706			8,572
Accumulated depreciation	(5,210		)	(5,105		)
Net property, plant and equipment	3,496			3,467
Other noncurrent assets
Goodwill	13,456			13,328
Other intangible assets	4,638			4,846
Operating lease assets	436			—
Deferred income taxes	372			293
Other assets	1,679			1,568
Total assets	$	32,805		$	31,092
Liabilities and shareholders’ equity
Current liabilities
Short-term debt	$	255		$	414
Current portion of long-term debt	248			339
Accounts payable	2,114			2,130
Accrued compensation	449			457
Liabilities held for sale	325			—
Other current liabilities	1,741			1,814
Total current liabilities	5,132			5,154
Noncurrent liabilities
Long-term debt	7,819			6,768
Pension liabilities	1,462			1,304
Other postretirement benefits liabilities	328			321
Operating lease liabilities	331			—
Deferred income taxes	396			349
Other noncurrent liabilities	1,204			1,054
Total noncurrent liabilities	11,540			9,796
Shareholders’ equity
Ordinary shares (413.3 million outstanding in 2019 and 423.6 million in 2018)	4			4
Capital in excess of par value	12,200			12,090
Retained earnings	8,170			8,161
Accumulated other comprehensive loss	(4,290		)	(4,145		)
Shares held in trust	(2		)	(3		)
Total Eaton shareholders’ equity	16,082			16,107
Noncontrolling interests	51			35
Total equity	16,133			16,142
Total liabilities and equity	$	32,805		$	31,092

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

24

EATON CORPORATION plc

CONSOLIDATED STATEMENTS OF CASH FLOWS

	Year ended December 31
(In millions)	2019			2018			2017
Operating activities
Net income	$	2,213		$	2,146		$	2,986
Adjustments to reconcile to net cash provided by operating activities
Depreciation and amortization	884			903			914
Deferred income taxes	(71		)	(115		)	(206		)
Pension and other postretirement benefits expense	157			159			208
Contributions to pension plans	(119		)	(126		)	(473		)
Contributions to other postretirement benefits plans	(15		)	(25		)	(20		)
Loss (gain) on sale of businesses	66			—			(843		)
Changes in working capital
Accounts receivable - net	200			(123		)	(231		)
Inventory	(60		)	(242		)	(202		)
Accounts payable	147			23			388
Accrued compensation	(23		)	23			59
Accrued income and other taxes	(49		)	(31		)	(4		)
Other current assets	(94		)	71			2
Other current liabilities	(57		)	144			(203		)
Other - net	272			(149		)	291
Net cash provided by operating activities	3,451			2,658			2,666
Investing activities
Capital expenditures for property, plant and equipment	(587		)	(565		)	(520		)
Cash paid for acquisitions of businesses, net of cash acquired	(1,180		)	—			—
Proceeds from (payments for) sales of businesses	(36		)	—			607
Sales (purchases) of short-term investments - net	(70		)	355			(298		)
Proceeds from (payments for) settlement of currency exchange contracts not designated as hedges - net	54			(110		)	—
Other - net	(47		)	(78		)	(6		)
Net cash used in investing activities	(1,866		)	(398		)	(217		)
Financing activities
Proceeds from borrowings	1,232			410			1,000
Payments on borrowings	(507		)	(574		)	(1,554		)
Cash dividends paid	(1,201		)	(1,149		)	(1,068		)
Exercise of employee stock options	66			29			66
Repurchase of shares	(1,029		)	(1,271		)	(850		)
Employee taxes paid from shares withheld	(46		)	(24		)	(22		)
Other - net	(9		)	(2		)	(14		)
Net cash used in financing activities	(1,494		)	(2,581		)	(2,442		)
Effect of currency on cash	(4		)	43			11
Total increase (decrease) in cash	87			(278		)	18
Cash at the beginning of the period	283			561			543
Cash at the end of the period	$	370		$	283		$	561

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

25

EATON CORPORATION plc

CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY

	Ordinary shares					Capital in excess of par value		Retained earnings			Accumulated other comprehensive loss			Shares held in trust			Total Eaton shareholders' equity			Noncontrolling interests			Total equity
(In millions)	Shares		Dollars
Balance at January 1, 2017	449.4		$	5		$	11,845	$	7,555		$	(4,448	)	$	(3	)	$	14,954		$	44		$	14,998
Cumulative-effect adjustment upon adoption of ASU 2016-09	—		—			—		48			—			—			48			—			48
Net income	—		—			—		2,985			—			—			2,985			1			2,986
Other comprehensive income, net of tax											1,044						1,044						1,044
Cash dividends paid	—		—			—		(1,068		)	—			—			(1,068		)	(5		)	(1,073		)
Issuance of shares under equity-based compensation plans	2.0		—			142		(2		)	—			—			140			—			140
Changes in noncontrolling interest of consolidated subsidiaries - net	—		—			—		—			—			—			—			(3		)	(3		)
Repurchase of shares	(11.5	)	(1		)	—		(849		)	—			—			(850		)	—			(850		)
Balance at December 31, 2017	439.9		4			11,987		8,669			(3,404		)	(3		)	17,253			37			17,290
Cumulative-effect adjustment upon adoption of ASU 2014-09	—		—			—		(2		)	—			—			(2		)	—			(2		)
Cumulative-effect adjustment upon adoption of ASU 2016-16	—		—			—		(199		)	—			—			(199		)	—			(199		)
Net income	—		—			—		2,145			—			—			2,145			1			2,146
Other comprehensive loss, net of tax											(741		)				(741		)				(741		)
Cash dividends paid	—		—			—		(1,149		)	—			—			(1,149		)	(1		)	(1,150		)
Issuance of shares under equity-based compensation plans	1.2		—			103		(3		)	—			—			100			—			100
Changes in noncontrolling interest of consolidated subsidiaries - net	—		—			—		—			—			—			—			(2		)	(2		)
Repurchase of shares	(17.5	)	—			—		(1,300		)	—			—			(1,300		)	—			(1,300		)
Balance at December 31, 2018	423.6		4			12,090		8,161			(4,145		)	(3		)	16,107			35			16,142
Net income	—		—			—		2,211			—			—			2,211			2			2,213
Other comprehensive loss, net of tax											(145		)				(145		)				(145		)
Cash dividends paid	—		—			—		(1,201		)	—			—			(1,201		)	(3		)	(1,204		)
Issuance of shares under equity-based compensation plans	2.2		—			110		(1		)	—			1			110			—			110
Acquisitions of businesses	—		—			—		—			—			—			—			55			55
Acquisition of noncontrolling interest obtained through tender offer	—		—			—		—			—			—			—			(33		)	(33		)
Business divestiture	—		—			—		—			—			—			—			(4		)	(4		)
Changes in noncontrolling interest of consolidated subsidiaries - net	—		—			—		—			—			—			—			(1		)	(1		)
Repurchase of shares	(12.5	)	—			—		(1,000		)	—			—			(1,000		)	—			(1,000		)
Balance at December 31, 2019	413.3		$	4		$	12,200	$	8,170		$	(4,290	)	$	(2	)	$	16,082		$	51		$	16,133

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

26

EATON CORPORATION plc

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Amounts are in millions unless indicated otherwise (per share data assume dilution).

Note 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

General Information and Basis of Presentation

Eaton Corporation plc (Eaton or the Company) is a power management company with 2019 net sales of $21.4 billion. Eaton’s mission is to improve the quality of life and the environment through the use of power management technologies and services. We provide sustainable solutions that help our customers effectively manage electrical, hydraulic and mechanical power – more safely, more efficiently and more reliably. Eaton has approximately 101,000 employees in 60 countries and sells products to customers in more than 175 countries.

The consolidated financial statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States. Preparation of the consolidated financial statements requires management to make estimates and assumptions that affect amounts reported in the consolidated financial statements and notes. Actual results could differ from these estimates. Management has evaluated subsequent events through the date the consolidated financial statements were filed with the Securities Exchange Commission.

The consolidated financial statements include the accounts of Eaton and all subsidiaries and other entities it controls. Intercompany transactions and balances have been eliminated. The equity method of accounting is used for investments in associate companies where the Company has significant influence and generally a 20% to 50% ownership interest. Equity investments are evaluated for impairment whenever events or circumstances indicate the book value of the investment exceeds fair value. An impairment would exist if there is an other-than-temporary decline in value. Income from equity investments is reported in Other (income) expense - net. Eaton does not have off-balance sheet arrangements or financings with unconsolidated entities.

Eaton's functional currency is United States Dollars (USD). The functional currency for most subsidiaries is their local currency. Financial statements for these subsidiaries are translated at year-end exchange rates as to assets and liabilities and weighted-average exchange rates as to revenues and expenses. The resulting translation adjustments are recognized in Accumulated other comprehensive loss.

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

Adoption of New Accounting Standards

Eaton adopted Accounting Standard Update 2016-02, Leases (Topic 842), and related amendments, in the first quarter of 2019 using the optional transition method and has not restated prior periods. The Company elected to use the package of practical expedients permitted under the transition guidance within the new standard, which among other things, allowed the carry forward of historical lease classification of existing leases. The Company recorded a cumulative-effect adjustment of less than $1 to retained earnings as of January 1, 2019. Additionally, the adoption of the new standard resulted in the recording of lease assets and lease liabilities for operating leases of $435 and $446, respectively, as of January 1, 2019. The adoption of this standard did not have a material impact to the Consolidated Statements of Income or Cash Flows.

Eaton adopted Accounting Standard Update 2017-12, Derivatives and Hedging (Topic 815) - Targeted Improvements to Accounting for Hedging Activities, in the first quarter 2019 using the modified retrospective approach for hedge instruments that existed at the date of adoption. ASU 2017-12 is intended to better align the Company's risk management activities with financial reporting for hedging relationships. The standard eliminates the requirement to separately measure and report hedge ineffectiveness, expands the ability to hedge specific risk components, and generally requires the change in value of the hedge instrument and hedged item to be presented in the same income statement line. The new disclosure requirements were applied on a prospective basis and comparative information has not been restated. The adoption of this standard did not have a material impact on the consolidated financial statements.

Eaton adopted Accounting Standards Update 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, in the first quarter of 2020. This standard introduces new guidance for accounting for credit losses on receivables. The Company did not recognize a cumulative-effect adjustment to retained earnings as of January 1, 2020, as the adoption of this standard did not have a material impact on the consolidated financial statements.

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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.

Goodwill and Indefinite Life Intangible Assets

Goodwill is evaluated annually for impairment as of July 1 using either a quantitative or qualitative analysis. Goodwill is tested for impairment at the reporting unit level, which is equivalent to Eaton's operating segments and based on the net assets for each segment, including goodwill and intangible assets. Goodwill is assigned to each operating segment, as this represents the lowest level that constitutes a business and is the level at which management regularly reviews the operating results. The Company performs a quantitative analysis using a discounted cash flow model and other valuation techniques, but may elect to perform a qualitative analysis. Additionally, goodwill is evaluated for impairment whenever an event occurs or circumstances change that would indicate that it is more likely than not that the fair value of an operating segment is less than its carrying amount.

The annual goodwill impairment test was performed using a qualitative analysis in 2019 and 2018, except for the Hydraulics segment which used a quantitative analysis in 2019. A qualitative analysis is performed by assessing certain trends and factors, including projected market outlook and growth rates, forecasted and actual sales and operating profit margins, discount rates, industry data, and other relevant qualitative factors. These trends and factors are compared to, and based on, the assumptions used in the most recent quantitative analysis performed for each reporting unit. The results of the qualitative analyses did not indicate a need to perform quantitative analysis.

Goodwill impairment testing was also performed using quantitative analyses in 2019 as a result of the Lighting business being classified as held for sale as discussed in Note 2, and in 2018 for the Electrical Products, Vehicle and eMobility segments due to a reorganization of the Company’s businesses resulting in the creation of the eMobility segment. The Company used the relative fair value method to reallocate goodwill.

Quantitative analyses were performed by estimating the fair value for each reporting unit using a discounted cash flow model, which considered forecasted cash flows discounted at an estimated weighted-average cost of capital. The forecasted cash flows were based on the Company's long-term operating plan and a terminal value was used to estimate the operating segment's cash flows beyond the period covered by the operating plan. The weighted-average cost of capital is an estimate of the overall after-tax rate of return required by equity and debt market holders of a business enterprise. These analyses require the exercise of judgments, including judgments about appropriate discount rates, perpetual growth rates, revenue growth, and margin assumptions of the respective reporting unit. Sensitivity analyses were performed around certain of these assumptions in order to assess the reasonableness of the assumptions and the resulting estimated fair values.

Based on these analyses performed in 2019 and 2018, the fair value of Eaton's reporting units continue to substantially exceed their respective carrying amounts and thus, no impairment exists.

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Indefinite life intangible assets consist of certain trademarks. They are evaluated annually for impairment as of July 1 using either a quantitative or qualitative analysis to determine whether their fair values exceed their respective carrying amounts. Indefinite life intangible asset impairment testing for 2019 and 2018 was performed using a quantitative analysis. The Company determines the fair value of these assets using a royalty relief methodology similar to that employed when the associated assets were acquired, but using updated estimates of future sales, cash flows and profitability. Additionally, indefinite life intangible assets are evaluated for impairment whenever an event occurs or circumstances change that would indicate that it is more likely than not that the asset is impaired. For 2019 and 2018, the fair value of indefinite lived intangible assets exceeded the respective carrying value.

For additional information about goodwill and other intangible assets, see Note 4.

Leases

The Company determines if an arrangement is a lease at inception. Operating lease assets and liabilities are recognized at the commencement date of the lease based on the present value of lease payments over the lease term. Lease assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. As most leases do not provide an implicit interest rate, Eaton uses its incremental borrowing rate based on the information available at the lease commencement date in determining the present value of lease payments. The length of a lease term includes options to extend or terminate the lease when it is reasonably certain that the Company will exercise those options. The Company made an accounting policy election to not recognize lease assets or liabilities for leases with a term of 12 months or less. Additionally, when accounting for leases, the Company combines payments for leased assets, related services and other components of a lease.

Other Long-Lived Assets

Depreciation and amortization for property, plant and equipment, and intangible assets subject to amortization, are generally computed by the straight-line method and included in Cost of products sold, Selling and administrative expense, and Research and development expense, as appropriate. Cost of buildings are depreciated generally over 40 years and machinery and equipment over 3 to 10 years. At December 31, 2019, the weighted-average amortization period for intangible assets subject to amortization was 18 years for patents and technology; 17 years for customer relationships; and 17 years for certain trademarks. Software is generally amortized up to a life of 15 years.

Other long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate the carrying amount may not be recoverable. Upon indications of impairment, assets and liabilities are grouped at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities. The asset group would be considered impaired when the estimated future net undiscounted cash flows generated by the asset group are less than its carrying value. Determining asset groups and underlying cash flows requires the use of significant judgment.

Retirement Benefits Plans

For the principal pension plans in the United States, Canada, Puerto Rico and the United Kingdom, the Company uses a market-related value of plan assets to calculate the expected return on assets used to determine net periodic benefit costs. The market-related value of plan assets is a calculated value that recognizes changes in the fair value of plan assets over a five year period. All other plans use fair value of plan assets.

Net actuarial gains or losses are amortized to expense on a plan-by-plan basis when they exceed the accounting corridor. The Company’s corridors are set at either 8% or 10%, depending on the plan, of the greater of the plan assets or benefit obligations. Gains or losses outside of the corridor are subject to amortization over an average employee future service period that differs by plan, but is approximately 10 years on a weighted average basis. If most or all of the plan’s participants are no longer actively accruing benefits, the average life expectancy is used.

Asset Retirement Obligations

A conditional asset retirement obligation is recognized at fair value when incurred if the fair value of the liability can be reasonably estimated. Uncertainty about the timing or method of settlement of a conditional asset retirement obligation would be considered in the measurement of the liability when sufficient information exists. Eaton believes that for substantially all of its asset retirement obligations, there is an indeterminate settlement date because the range of time over which the Company may settle the obligation is unknown or cannot be estimated. A liability for these obligations will be recognized when sufficient information is available to estimate fair value.

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Income Taxes

Deferred income tax assets and liabilities are determined based on the difference between the financial statement and tax basis of the respective assets and liabilities, using enacted tax rates in effect for the year when the differences are expected to reverse. Deferred income tax assets are recognized for income tax loss carryforwards and income tax credit carryforwards. Judgment is required in determining and evaluating income tax provisions and valuation allowances for deferred income tax assets. Eaton recognizes an income tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by taxing authorities, based on the technical merits of the position. Eaton evaluates and adjusts these accruals based on changing facts and circumstances. Eaton recognizes interest and penalties related to unrecognized income tax benefits in the provision for income tax expense. Eaton's policy is to release income tax effects from accumulated other comprehensive income when individual units of account are sold, terminated, or extinguished. For additional information about income taxes, see Note 9.

Derivative Financial Instruments and Hedging Activities

Eaton uses derivative financial instruments to manage the exposure to the volatility in raw material costs, currency, and interest rates on certain debt. These instruments are marked to fair value in the accompanying Consolidated Balance Sheets. Changes in the fair value of derivative assets or liabilities (i.e., gains or losses) are recognized depending upon the type of hedging relationship and whether an instrument has been designated as a hedge. For those instruments that qualify for hedge accounting, Eaton designates the hedging instrument, based upon the exposure being hedged, as a cash flow hedge, a fair value hedge, or a hedge of a net investment in a foreign operation. Changes in fair value of these instruments that do not qualify for hedge accounting are recognized immediately in net income. See Note 13 for additional information about hedges and derivative financial instruments.

Note 2. ACQUISITIONS AND DIVESTITURES OF BUSINESSES

Sale of heavy-duty and medium-duty commercial vehicle automated transmission business

On July 31, 2017, Eaton sold a 50% interest in its heavy-duty and medium-duty commercial vehicle automated transmission business for $600 in cash to Cummins, Inc. The new joint venture is named Eaton Cummins Automated Transmission Technologies (ECATT). In 2017, the Company recognized a pre-tax gain of $1,077, of which $533 related to the pre-tax gain from the $600 proceeds from the sale and $544 related to the Company’s remaining 50% investment in the joint venture being remeasured to fair value. The after-tax gain was $843. The fair value is based on the price paid to Eaton for the 50% interest sold to Cummins, Inc. and further supported by a discounted cash flow model. Eaton accounts for its investment on the equity method of accounting.

Acquisition of controlling interest of Ulusoy Elektrik Imalat Taahhut ve Ticaret A.S.

On April 15, 2019, Eaton completed the acquisition of an 82.275% controlling interest in Ulusoy Elektrik Imalat Taahhut ve Ticaret A.S. (Ulusoy Elektrik), a leading manufacturer of electrical switchgear based in Ankara, Turkey, with a primary focus on medium voltage solutions for industrial and utility customers. Its sales for the 12 months ended September 30, 2018 were $126. The purchase price for the shares was $214 on a cash and debt free basis. As required by the Turkish capital markets legislation, Eaton filed an application to execute a mandatory tender offer for the remaining shares shortly after the transaction closed. During the tender offer, Eaton purchased additional shares for $33 through July 2019 to increase its ownership interest to 93.7%. Ulusoy Elektrik is reported within the Electrical Systems and Services business segment.

Acquisition of Innovative Switchgear Solutions, Inc.

On July 19, 2019, Eaton acquired Innovative Switchgear Solutions, Inc. (ISG), a specialty manufacturer of medium-voltage electrical equipment serving the North American utility, commercial and industrial markets. Its 2018 sales were approximately $18. ISG is reported within the Electrical Systems and Services business segment.

Acquisition of Souriau-Sunbank Connection Technologies

On December 20, 2019, Eaton acquired the Souriau-Sunbank Connection Technologies (Souriau-Sunbank) business of TransDigm Group Inc. for a cash purchase price of $903, net of cash received. Headquartered in Versailles, France, Souriau-Sunbank is a global leader in highly engineered electrical interconnect solutions for harsh environments in the aerospace, defense, industrial, energy, and transport markets. Its sales for the 12 months ended June 30, 2019 were $363. Souriau-Sunbank is reported within the Aerospace business segment.

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The acquisition of Souriau-Sunbank has been accounted for using the acquisition method of accounting which requires the assets acquired and liabilities assumed be recognized at their respective fair values on the acquisition date. The table below summarizes the preliminary estimated fair values of the assets acquired and liabilities assumed on the acquisition date. These preliminary estimates will be revised during the measurement period as third-party valuations are received and finalized, further information becomes available and additional analyses are performed, and these differences could have a material impact on Eaton's preliminary purchase price allocation.

	December 20, 2019
Accounts Receivables	$	60
Inventory	121
Prepaid expenses and other current assets	5
Property, plant and equipment	101
Other intangible assets	385
Other assets	8
Accounts payable	(34		)
Other current liabilities	(51		)
Other noncurrent liabilities	(130		)
Total identifiable net assets	465
Noncontrolling interests	(4		)
Goodwill	442
Total consideration, net of cash received	$	903

Goodwill is calculated as the excess of the consideration transferred over the net assets recognized and represents the anticipated synergies of acquiring Souriau-Sunbank. Goodwill recognized as a result of the acquisition is not deductible for tax purposes. Other intangible assets of $385 are expected to include customer relationships, trademarks and technology. Given the timing of the acquisition, Eaton utilized a benchmarking approach based on similar acquisitions to determine the preliminary fair values for intangible assets. See Note 4 for additional information about goodwill and other intangible assets.

The Company incurred $2 of acquisition related transaction costs in 2019 for Souriau-Sunbank that were included in Selling and administrative expense.

Eaton’s Consolidated Financial Statements include Souriau-Sunbank’s results of operations, including sales of $3, from the date of the acquisition through December 31, 2019.

Sale of Automotive Fluid Conveyance business

On December 31, 2019, Eaton sold its Automotive Fluid Conveyance Business. The transaction resulted in a pre-tax loss of $66 which was recorded in Other expense (income) - net. This business was reported within the Vehicle business segment.

Pending Sale of Lighting business

On October 15, 2019, Eaton entered into an agreement to sell its Lighting business to Signify N.V. for a cash purchase price of $1.4 billion. The Lighting business, which had sales of $1.6 billion in 2019 as part of the Electrical Products business segment, serves customers in commercial, industrial, residential and municipal markets. During the fourth quarter of 2019, the Company determined the Lighting business met the criteria to be classified as held for sale. Therefore, its assets and liabilities have been presented as held for sale in the Consolidated Balance Sheet as of December 31, 2019. Assets and liabilities classified as held for sale are measured at the lower of carrying value or fair value less costs to sell. There was no write-down as fair value of the Lighting business assets less costs to sell exceeded carrying value. Depreciation and amortization expense is not recorded for the period in which Other long-lived assets are classified as held for sale.

The Company used the relative fair value method to allocate goodwill to the Lighting business. The fair values of the Electrical Products business segment and Lighting business were estimated based on a combination of the price paid to Eaton by Signify N.V. and a discounted cash flow model. The model includes estimates of future cash flows, future growth rates, terminal value amounts, and the applicable weighted-average cost of capital used to discount those estimated cash flows. The weighted-average cost of capital is an estimate of the overall after-tax rate of return required by equity and debt market holders of a business enterprise. These analyses require the exercise of judgments, including judgments about appropriate discount rates, perpetual growth rates, revenue growth, and margin assumptions.

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The assets and liabilities of the Lighting business classified as held for sale at December 31, 2019 are as follows:

Accounts receivable - net	$	220
Inventory	161
Prepaid expenses and other current assets	10
Net property, plant and equipment	155
Goodwill	470
Other intangible assets	330
Operating lease assets	25
Other noncurrent assets	6
Assets held for sale - current	$	1,377
Accounts payable	$	184
Accrued compensation	7
Other current liabilities	102
Pension liabilities	3
Operating lease liabilities	17
Deferred income taxes	(1		)
Other noncurrent liabilities	13
Liabilities held for sale - current	$	325

The Lighting business did not meet the criteria to be classified as discontinued operations as the sale does not represent a strategic shift that will have a major effect on the Company's operations. The transaction is subject to customary closing conditions and regulatory approvals and is expected to close in the first quarter of 2020.

Pending Sale of Hydraulics business

On January 21, 2020, Eaton entered into an agreement to sell its Hydraulics business to Danfoss A/S, a Danish industrial company, for $3.3 billion in cash. Eaton’s Hydraulics business, which accounted for 86% of Eaton’s Hydraulics segment revenue in 2019, is a global leader in hydraulics components, systems, and services for industrial and mobile equipment. The business had sales of $2.2 billion in 2019. Eaton is retaining the Filtration and Golf Grip businesses currently reported in the company’s Hydraulics segment. Eaton expects the Hydraulics business to be classified as held for sale during the first quarter of 2020. The Hydraulics business did not meet the criteria to be classified as discontinued operations as the sale does not represent a strategic shift that will have a major effect on the Company's operations. The transaction is subject to customary closing conditions and regulatory approvals and is expected to close by the end of 2020.

Acquisition of Power Distribution, Inc.

On February 25, 2020, Eaton completed the acquisition of Power Distribution, Inc. a leading supplier of mission critical power distribution, static switching, and power monitoring equipment and services for data centers and industrial and commercial customers. The company is headquartered in Richmond, Virginia, and had 2019 sales of $125. Power Distribution, Inc. will be reported within the Electrical Systems and Services business segment.

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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 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.

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.

33

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.

	2019
Net sales	United States		Rest of World		Total
Electrical Products	$	4,269	$	2,879	$	7,148
Electrical Systems and Services	4,148		2,139		6,287
Hydraulics	1,112		1,440		2,552
	Original Equipment Manufacturers		Aftermarket, Distribution and End User
Aerospace	$	1,167	$	877	2,044
	Commercial		Passenger and Light Duty
Vehicle	$	1,538	$	1,500	3,038
eMobility					321
Total					$	21,390

34

	2018
Net sales	United States		Rest of World		Total
Electrical Products	$	4,112	$	3,012	$	7,124
Electrical Systems and Services	3,936		2,088		6,024
Hydraulics	1,190		1,566		2,756
	Original Equipment Manufacturers		Aftermarket, Distribution and End User
Aerospace	$	1,085	$	811	1,896
	Commercial		Passenger and Light Duty
Vehicle	$	1,759	$	1,730	3,489
eMobility					320
Total					$	21,609

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 $3,090 and $3,402 at December 31, 2019 and December 31, 2018, 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 Consolidated Balance Sheets on a contract-by-contract basis at the end of each reporting period. Unbilled receivables were $101 and $94 at December 31, 2019 and December 31, 2018, respectively, and are recorded in Prepaid expenses and other current assets. The increase in unbilled receivables was primarily due to revenue recognized and not yet billed, partially offset by billings to customers during 2019.

Changes in the deferred revenue liabilities are as follows:

	Deferred Revenue
Balance at January 1, 2018	$	227
Customer deposits and billings	967
Revenue recognized in the period	(939		)
Translation	(7		)
Balance at December 31, 2018	$	248
Customer deposits and billings	982
Revenue recognized in the period	(993		)
Translation	3
Deferred revenue reclassified to held for sale	(6		)
Balance at December 31, 2019	$	234

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 December 31, 2019 was approximately $5.4 billion. At December 31, 2019, Eaton expects to recognize approximately 87% of this backlog in the next twelve months and the rest thereafter.

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Note 4. GOODWILL AND OTHER INTANGIBLE ASSETS

Changes in the carrying amount of goodwill by segment follow:

	January 1, 2018		Translation			December 31, 2018		Additions		Goodwill reclassified to held for sale			Translation			December 31, 2019
Electrical Products	$	6,678	$	(116	)	$	6,562	$	—	$	(470	)	$	(2	)	$	6,090
Electrical Systems and Services	4,311		(70		)	4,241		163		—			6			4,410
Hydraulics	1,257		(45		)	1,212		—		—			(13		)	1,199
Aerospace	947		(6		)	941		442		—			3			1,386
Vehicle	294		(2		)	292		—		—			(1		)	291
eMobility	81		(1		)	80		—		—			—			80
Total	$	13,568	$	(240	)	$	13,328	$	605	$	(470	)	$	(7	)	$	13,456

The 2019 additions to goodwill relate to the anticipated synergies of acquiring Souriau-Sunbank, Ulusoy Elektrik and ISG. The allocations of the purchase price from these acquisitions are preliminary and will be completed during the measurement period.

A summary of other intangible assets follows:

	2019				2018
	Historical cost		Accumulated amortization		Historical cost		Accumulated amortization
Intangible assets not subject to amortization
Trademarks	$	1,516			$	1,626
Intangible assets subject to amortization
Customer relationships	$	3,260	$	1,634	$	3,463	$	1,600
Patents and technology	1,542		704		1,329		646
Trademarks	1,057		457		1,032		419
Other	92		34		92		31
Total intangible assets subject to amortization	$	5,951	$	2,829	$	5,916	$	2,696

Amortization expense related to intangible assets subject to amortization in 2019, and estimated amortization expense for each of the next five years, follows:

2019	$	354
2020	351
2021	341
2022	332
2023	286
2024	275

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Note 5. LEASES

Eaton leases certain manufacturing facilities, warehouses, distribution centers, office space, vehicles and equipment. Most real estate leases contain renewal options. The exercise of lease renewal options is at the Company's sole discretion. The Company's lease agreements typically do not contain any significant guarantees of asset values at the end of a lease or restrictive covenants. Payments within certain lease agreements are adjusted periodically for changes in an index or rate.

The components of lease expense follows:

	2019
Operating lease cost	$	166
Finance lease cost:
Amortization of lease assets	5
Interest on lease liabilities	1
Short-term lease cost	46
Variable lease cost	22
Sublease income	(3		)
Total lease cost	$	237

The net gain recorded on sale leaseback transactions for the year ended December 31, 2019 were $16.

Supplemental cash flow information related to leases follows:

	2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflows - payments on operating leases	$	(168	)
Operating cash outflows - interest payments on finance leases	(1		)
Financing cash outflows - payments on finance lease obligations	(6		)
Lease assets obtained in exchange for new lease obligations, including leases acquired:
Operating leases	$	114
Finance leases	24

37

Supplemental balance sheet information related to leases follows:

	December 31, 2019
Operating Leases
Operating lease assets	$	436
Other current liabilities	121
Operating lease liabilities	331
Total operating lease liabilities	$	452
Finance Leases
Land and buildings	$	24
Machinery and equipment	18
Accumulated depreciation	(16		)
Net property, plant and equipment	$	26
Current portion of long-term debt	$	6
Long-term debt	21
Total finance lease liabilities	$	27
Weighted-average remaining lease term
Operating leases	5.1 years
Finance leases	6.8 years
Weighted-average discount rate
Operating leases	3.7		%
Finance leases	7.6		%

Maturities of lease liabilities at December 31, 2019 follows:

	Operating Leases		Finance Leases
2020	$	142	$	8
2021	113		8
2022	82		6
2023	56		4
2024	37		2
Thereafter	82		9
Total lease payments	512		37
Less imputed interest	60		10
Total present value of lease liabilities	$	452	$	27

38

A summary of minimum rental commitments at December 31, 2018 under noncancelable operating leases, which expire at various dates and in most cases contain renewal options, for each of the next five years and thereafter in the aggregate, follow:

	Operating Leases
2019	$	165
2020	133
2021	106
2022	75
2023	53
Thereafter	110
Total lease commitments	$	642

A summary of rental expense follows:

2018	$	232
2017	222

Note 6. DEBT

A summary of long-term debt, including the current portion, follows:

	2019			2018
6.95% notes due 2019 ($300 converted to floating rate by interest rate swap)	$	—		$	300
3.875% debentures due 2020 ($150 converted to floating rate by interest rate swap)	239			239
3.47% notes due 2021 ($275 converted to floating rate by interest rate swap)	300			300
0.02% Euro notes due 2021	674			—
8.10% debentures due 2022 ($100 converted to floating rate by interest rate swap)	100			100
2.75% senior notes due 2022 ($1,400 converted to floating rate by interest rate swap)	1,600			1,600
3.68% notes due 2023 ($200 converted to floating rate by interest rate swap)	300			300
0.75% Euro notes due 2024	617			629
6.50% debentures due 2025	145			145
0.70% Euro notes due 2025	562			—
3.10% senior notes due 2027	700			700
7.65% debentures due 2029 ($50 converted to floating rate by interest rate swap)	200			200
4.00% senior notes due 2032	700			700
5.45% debentures due 2034 ($25 converted to floating rate by interest rate swap)	137			136
5.80% notes due 2037	240			240
4.15% senior notes due 2042	1,000			1,000
3.92% senior notes due 2047	300			300
5.25% to 7.875% notes (maturities ranging from 2024 to 2035, including $25 converted to floating rate by interest rate swap)	165			203
Other	88			15
Total long-term debt	8,067			7,107
Less current portion of long-term debt	(248		)	(339		)
Long-term debt less current portion	$	7,819		$	6,768

Substantially all these long-term debt instruments are fully and unconditionally guaranteed on an unsubordinated, unsecured basis by Eaton and certain of its direct and indirect subsidiaries (the Senior Notes). Further, as of December 31, 2019 all of these long-term debt instruments, except the 3.875% debentures due 2020, the 3.47% notes due 2021, the 0.02% Euro notes due 2021, the 3.68% notes due 2023, the 0.75% Euro notes due 2024, and the 0.70% Euro notes due 2025, are registered by Eaton Corporation under the Securities Act of 1933, as amended (the Registered Senior Notes).

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The Company maintains long-term revolving credit facilities totaling $2,000, consisting of a $750 five-year revolving credit facility that will expire November 17, 2022, a $500 four-year revolving credit facility that will expire November 7, 2023, and a $750 five-year revolving credit facility that will expire November 7, 2024. The revolving credit facilities are used to support commercial paper borrowings and are fully and unconditionally guaranteed by Eaton and certain of its direct and indirect subsidiaries on an unsubordinated, unsecured basis. There were no borrowings outstanding under Eaton's revolving credit facilities at December 31, 2019 or 2018. The Company had available lines of credit of $1,027 from various banks primarily for the issuance of letters of credit, of which there was $263 of letters of credit issued thereunder at December 31, 2019. Borrowings outside the United States are generally denominated in local currencies.

At December 31, 2019, short-term debt of $255 was comprised entirely of short-term commercial paper in the United States, which had a weighted average interest rate of 1.85%.

On May 14, 2019, a subsidiary of Eaton issued Euro denominated notes (2019 Euro Notes) with a face value of €1,100 ($1,232 based on the May 14, 2019 spot rate), in accordance with Regulation S promulgated under the Securities Act of 1933, as amended. The 2019 Euro Notes are comprised of two tranches of €600 and €500, which mature in 2021 and 2025, respectively, with interest payable annually at a respective rate of 0.02% and 0.70%. The issuer received proceeds totaling €1,097 ($1,229 based on the May 14, 2019 spot rate) from the issuance, net of financing costs and discounts. The senior 2019 Euro Notes are fully and unconditionally guaranteed on an unsubordinated, unsecured basis by Eaton and certain of its direct and indirect subsidiaries. The 2019 Euro Notes contain customary optional redemption and par call provisions. The 2019 Euro Notes also contain a change of control provision which requires the Company to make an offer to purchase all or any part of the 2019 Euro Notes at a purchase price of 101% of the principal amount plus accrued and unpaid interest. The capitalized deferred financing fees are amortized in Interest expense-net over the respective terms of the 2019 Euro Notes. The 2019 Euro Notes are subject to customary non-financial covenants.

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

Maturities of long-term debt for each of the next five years follow:

2020	$	248
2021	981
2022	1,704
2023	303
2024	685

Interest paid on debt follows:

2019	$	279
2018	313
2017	293

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Note 7. RETIREMENT BENEFITS PLANS

Eaton has defined benefits pension plans and other postretirement benefits plans.

Obligations and Funded Status

	United States pension liabilities						Non-United States pension liabilities						Other postretirement liabilities
	2019			2018			2019			2018			2019			2018
Funded status
Fair value of plan assets	$	3,433		$	3,068		$	1,903		$	1,560		$	23		$	37
Benefit obligations	(4,028		)	(3,633		)	(2,747		)	(2,285		)	(378		)	(378		)
Funded status	$	(595	)	$	(565	)	$	(844	)	$	(725	)	$	(355	)	$	(341	)
Amounts recognized in the Consolidated    Balance Sheets
Non-current assets	$	—		$	—		$	73		$	58		$	—		$	—
Current liabilities	(23		)	(20		)	(27		)	(24		)	(27		)	(20		)
Non-current liabilities	(572		)	(545		)	(890		)	(759		)	(328		)	(321		)
Total	$	(595	)	$	(565	)	$	(844	)	$	(725	)	$	(355	)	$	(341	)
Amounts recognized in Accumulated other    comprehensive loss (pre-tax)
Net actuarial (gain) loss	$	1,096		$	1,153		$	879		$	683		$	(8	)	$	(20	)
Prior service cost (credit)	7			7			25			27			(17		)	(32		)
Total	$	1,103		$	1,160		$	904		$	710		$	(25	)	$	(52	)

Change in Benefit Obligations

	United States pension liabilities						Non-United States pension liabilities						Other postretirement liabilities
	2019			2018			2019			2018			2019			2018
Balance at January 1	$	3,633		$	3,961		$	2,285		$	2,399		$	378		$	448
Service cost	91			100			58			63			2			2
Interest cost	138			122			57			52			14			13
Actuarial (gain) loss	435			(272		)	315			(16		)	14			(39		)
Gross benefits paid	(270		)	(282		)	(102		)	(112		)	(60		)	(67		)
Currency translation	—			—			47			(124		)	2			(4		)
Plan amendments	1			4			—			21			1			—
Acquisitions and divestitures	—			—			(4		)	—			—			—
Benefit obligation reclassified to held for sale	—			—			(4		)	—			—			—
Other	—			—			95			2			27			25
Balance at December 31	$	4,028		$	3,633		$	2,747		$	2,285		$	378		$	378
Accumulated benefit obligation	$	3,883		$	3,506		$	2,592		$	2,175

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Change in Plan Assets

	United States pension liabilities						Non-United States pension liabilities						Other postretirement liabilities
	2019			2018			2019			2018			2019			2018
Balance at January 1	$	3,068		$	3,585		$	1,560		$	1,727		$	37		$	55
Actual return on plan assets	618			(252		)	230			(72		)	5			—
Employer contributions	17			17			102			109			15			25
Gross benefits paid	(270		)	(282		)	(102		)	(112		)	(60		)	(67		)
Currency translation	—			—			58			(93		)	—			—
Other	—			—			55			1			26			24
Balance at December 31	$	3,433		$	3,068		$	1,903		$	1,560		$	23		$	37

The components of pension plans with an accumulated benefit obligation in excess of plan assets at December 31 follow:

	United States pension liabilities				Non-United States pension liabilities
	2019		2018		2019		2018
Projected benefit obligation	$	4,028	$	3,633	$	1,107	$	905
Accumulated benefit obligation	3,883		3,506		1,028		853
Fair value of plan assets	3,433		3,068		242		158

Changes in pension and other postretirement benefit liabilities recognized in Accumulated other comprehensive loss follow:

	United States pension liabilities						Non-United States pension liabilities						Other postretirement liabilities
	2019			2018			2019			2018			2019			2018
Balance at January 1	$	1,160		$	1,063		$	710		$	604		$	(52	)	$	(27	)
Prior service cost arising during the year	1			4			—			21			1			—
Net loss (gain) arising during the year	52			233			231			161			11			(36		)
Currency translation	—			—			15			(35		)	1			(2		)
Less amounts included in expense during the year	(110		)	(140		)	(52		)	(41		)	14			13
Net change for the year	(57		)	97			194			106			27			(25		)
Balance at December 31	$	1,103		$	1,160		$	904		$	710		$	(25	)	$	(52	)

Benefits Expense

	United States pension benefit expense									Non-United States pension benefit expense									Other postretirement benefits expense
	2019			2018			2017			2019			2018			2017			2019			2018			2017
Service cost	$	91		$	100		$	96		$	58		$	63		$	71		$	2		$	2		$	3
Interest cost	138			122			123			57			52			55			14			13			14
Expected return on plan assets	(235		)	(253		)	(244		)	(106		)	(105		)	(94		)	(2		)	(3		)	(4		)
Amortization	62			94			83			38			39			51			(14		)	(13		)	(13		)
	56			63			58			47			49			83			—			(1		)	—
Settlements, curtailments and special termination benefits	48			46			62			14			2			5			—			—			—
Total expense	$	104		$	109		$	120		$	61		$	51		$	88		$	—		$	(1	)	$	—

42

Total pension benefits expense of $165 includes $8 of settlement expense related to the sale of the Automotive Fluid Conveyance Business discussed in Note 2. The components of retirement benefits expense other than service costs are included in Other expense (income) - net.

The estimated pre-tax net amounts that will be recognized from Accumulated other comprehensive loss into net periodic benefit cost in 2020 follow:

	United States pension liabilities		Non-United States pension liabilities		Other postretirement liabilities
Actuarial loss	$	144	$	59	$	1
Prior service cost (credit)	1		3		(14		)
Total	$	145	$	62	$	(13	)

Retirement Benefits Plans Assumptions

For purposes of determining liabilities related to pension plans and other postretirement benefits plans in the United States, in 2017 the Company used 2014 mortality tables and a generational improvement scale that is based on MP-2017. In 2018 and 2019, for the majority of its plans in the United States, the Company used mortality tables that are based on the Company's own experience and generational improvement scales that are based on MP-2018 and MP-2019, respectively.

To estimate the service and interest cost components of net periodic benefit cost for the vast majority of its defined benefits pension and other postretirement benefits plans, the Company used a spot rate approach by applying the specific spot rates along the yield curve used to measure the benefit obligation at the beginning of the period to the relevant projected cash flows.

Pension Plans

	United States pension plans						Non-United States pension plans
	2019		2018		2017		2019		2018		2017
Assumptions used to determine benefit obligation at year-end
Discount rate	3.22	%	4.28	%	3.64	%	2.02	%	2.83	%	2.62	%
Rate of compensation increase	3.14	%	3.14	%	3.15	%	3.05	%	3.10	%	3.11	%
Assumptions used to determine expense
Discount rate used to determine benefit obligation	4.28	%	3.64	%	4.12	%	2.83	%	2.62	%	2.63	%
Discount rate used to determine service cost	4.39	%	3.78	%	4.31	%	4.02	%	3.54	%	3.38	%
Discount rate used to determine interest cost	3.94	%	3.19	%	3.40	%	2.56	%	2.31	%	2.34	%
Expected long-term return on plan assets	7.25	%	7.52	%	7.90	%	6.42	%	6.40	%	6.30	%
Rate of compensation increase	3.14	%	3.15	%	3.15	%	3.10	%	3.11	%	3.13	%

The expected long-term rate of return on pension assets was determined for each country and reflects long-term historical data taking into account each plan's target asset allocation. The expected long-term rates of return on pension assets for United States pension plans and Non-United States pension plans for 2020 are 7.25% and 5.84%, respectively. The discount rates were determined using appropriate bond data for each country.

43

Other Postretirement Benefits Plans

Substantially all of the obligation for other postretirement benefits plans relates to United States plans. Assumptions used to determine other postretirement benefits obligations and expense follow:

	Other postretirement benefits plans
	2019		2018		2017
Assumptions used to determine benefit obligation at year-end
Discount rate	3.13	%	4.23	%	3.55	%
Health care cost trend rate assumed for next year	6.95	%	7.10	%	8.25	%
Ultimate health care cost trend rate	4.75	%	4.75	%	4.75	%
Year ultimate health care cost trend rate is achieved	2029		2028		2027
Assumptions used to determine expense
Discount rate used to determine benefit obligation	4.23	%	3.55	%	3.96	%
Discount rate used to determine service cost	4.29	%	3.62	%	4.11	%
Discount rate used to determine interest cost	3.85	%	3.04	%	3.18	%
Initial health care cost trend rate	7.10	%	8.25	%	7.35	%
Ultimate health care cost trend rate	4.75	%	4.75	%	4.75	%
Year ultimate health care cost trend rate is achieved	2028		2027		2026

Assumed health care cost trend rates may have a significant effect on the amounts reported for the health care plans. A 1-percentage point change in the assumed health care cost trend rates would have the following effects:

	1% increase		1% decrease
Effect on total service and interest cost	$	1	$	—
Effect on other postretirement liabilities	10		(8		)

Employer Contributions to Retirement Benefits Plans

Contributions to pension plans that Eaton expects to make in 2020, and made in 2019, 2018 and 2017, follow:

	2020		2019		2018		2017
United States plans	$	24	$	17	$	17	$	374
Non-United States plans	104		102		109		99
Total contributions	$	128	$	119	$	126	$	473

The following table provides the estimated pension and other postretirement benefit payments for each of the next five years, and the five years thereafter in the aggregate. For other postretirement benefits liabilities, the expected subsidy receipts related to the Medicare Prescription Drug, Improvement, and Modernization Act of 2003 would reduce the gross payments listed below.

	Estimated United States pension payments		Estimated non-United States pension payments		Estimated other postretirement benefit payments
					Gross		Medicare prescription drug subsidy
2020	$	316	$	96	$	36	$	(1	)
2021	313		96		31		(1		)
2022	307		100		31		—
2023	306		103		28		—
2024	299		106		26		—
2025 - 2029	1,436		594		112		(1		)

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Pension Plan Assets

Investment policies and strategies are developed on a country specific basis. The United States plans, representing 64% of worldwide pension assets, and the United Kingdom plans representing 28% of worldwide pension assets, are invested primarily for growth, as the majority of the assets are in plans with active participants and ongoing accruals. In general, the plans have their primary allocation to diversified global equities, primarily through index funds in the form of common collective and other trusts. The United States plans' target allocation is 25% United States equities, 25% non-United States equities, 8% real estate (primarily equity of real estate investment trusts), 37% debt securities and 5% other, including private equity and cash equivalents. The United Kingdom plans' target asset allocations are 60% equities and the remainder in debt securities, cash equivalents and real estate investments. The equity risk for the plans is managed through broad geographic diversification and diversification across industries and levels of market capitalization. The majority of debt allocations for these plans are longer duration government and corporate debt. The United States, United Kingdom and Canada pension plans are authorized to use derivatives to achieve more economically desired market exposures and to use futures, swaps and options to gain or hedge exposures.

Fair Value Measurements

Financial instruments included in pension and other postretirement benefits plan assets are categorized into a fair value hierarchy of three levels, based on the degree of subjectivity inherent in the valuation methodology as follows:

Level 1 - Quoted prices (unadjusted) for identical assets in active markets.

Level 2 - Quoted prices for similar assets in active markets, and inputs that are observable for the asset, either directly or indirectly, for substantially the full term of the financial instrument.

Level 3 - Unobservable prices or inputs.

Certain investments that are measured at fair value using the net asset value per share practical expedient have not been categorized in the fair value hierarchy and are being presented in the tables to permit a reconciliation to total plan assets.

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Pension Plans

A summary of the fair value of pension plan assets at December 31, 2019 and 2018, follows:

	Total			Quoted prices in active markets for identical assets (Level 1)		Other observable inputs (Level 2)		Unobservable inputs (Level 3)1
2019
Common collective trusts
Non-United States equity and global equities	$	606		$	—	$	606	$	—
United States equity	74			—		74		—
Fixed income	571			—		571		—
Fixed income securities	885			—		885		—
United States treasuries	330			330		—		—
Bank loans	104			—		104		—
Real estate	299			225		13		61
Cash equivalents	196			67		129		—
Exchange traded funds	79			79		—		—
Other	167			—		38		129
Common collective and other trusts measured at net asset value	2,108
Money market funds measured at net asset value	6
Pending purchases and sales of plan assets, and interest     receivable	(89		)
Total pension plan assets	$	5,336		$	701	$	2,420	$	190

¹ These pension plan assets include private real estate, private credit and private equity funds that generally have redemption notice periods of six months or longer, and are not eligible for redemption until the underlying assets are liquidated or distributed. The Company has unfunded commitments to these funds of approximately $334 at December 31, 2019, which will be satisfied by a reallocation of pension plan assets.

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	Total			Quoted prices in active markets for identical assets (Level 1)		Other observable inputs (Level 2)		Unobservable inputs (Level 3)1
2018
Common collective trusts
Non-United States equity and global equities	$	612		$	—	$	612	$	—
United States equity	50			—		50		—
Fixed income	483			—		483		—
Fixed income securities	721			—		721		—
United States treasuries	262			262		—		—
Bank loans	107			—		107		—
Real estate	202			181		—		21
Equity securities	51			51		—		—
Cash equivalents	176			130		46		—
Exchange traded funds	60			60		—		—
Other	90			—		15		75
Common collective and other trusts measured at net asset value	1,833
Money market funds measured at net asset value	5
Pending purchases and sales of plan assets, and interest     receivable	(24		)
Total pension plan assets	$	4,628		$	684	$	2,034	$	96

¹ These pension plan assets include private real estate and private equity funds that generally have redemption notice periods of six months or longer, and are not eligible for redemption until the underlying assets are liquidated or distributed. The Company has unfunded commitments to these funds of approximately $180 at December 31, 2018, which will be satisfied by a reallocation of pension plan assets.

The fair value measurement of plan assets using significant unobservable inputs (Level 3) changed during 2018 and 2019 due to the following:

	Real estate			Other		Total
Balance at January 1, 2018	$	19		$	73	$	92
Actual return on plan assets:
Gains (losses) relating to assets still held at year-end	(1		)	—		(1		)
Purchases, sales, settlements - net	3			2		5
Transfers into or out of Level 3	—			—		—
Balance at December 31, 2018	21			75		96
Actual return on plan assets:
Gains (losses) relating to assets still held at year-end	4			12		16
Purchases, sales, settlements - net	36			42		78
Transfers into or out of Level 3	—			—		—
Balance at December 31, 2019	$	61		$	129	$	190

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Other Postretirement Benefits Plans

A summary of the fair value of other postretirement benefits plan assets at December 31, 2019 and 2018, follows:

	Total		Quoted prices in active markets for identical assets (Level 1)		Other observable inputs (Level 2)		Unobservable inputs (Level 3)
2019
Cash equivalents	$	5	$	5	$	—	$	—
Common collective and other trusts measured at net asset value	18
Total other postretirement benefits plan assets	$	23	$	5	$	—	$	—

	Total		Quoted prices in active markets for identical assets (Level 1)		Other observable inputs (Level 2)		Unobservable inputs (Level 3)
2018
Cash equivalents	$	6	$	6	$	—	$	—
Common collective and other trusts measured at net asset value	31
Total other postretirement benefits plan assets	$	37	$	6	$	—	$	—

Valuation Methodologies

Following is a description of the valuation methodologies used for pension and other postretirement benefits plan assets measured at fair value. There have been no changes in the methodologies used at December 31, 2019 and 2018.

Common collective and other trusts - Valued at the net unit value of units held by the trust at year end. The unit value is determined by the total value of fund assets divided by the total number of units of the fund owned. The equity investments in collective trusts are predominantly in index funds for which the underlying securities are actively traded in public markets based upon readily measurable prices. The investments in other trusts are predominantly in exchange traded funds for which the underlying securities are actively traded in public markets based upon readily measurable prices. Common collective and other trusts measured at fair value using the net asset value per share practical expedient have not been categorized in the fair value hierarchy and are being presented in the tables above to permit a reconciliation of the fair value hierarchy to the total plan assets.

Fixed income securities - These securities consist of publicly traded United States and non-United States fixed interest obligations (principally corporate and government bonds and debentures). The fair value of corporate and government debt securities is determined through third-party pricing models that consider various assumptions, including time value, yield curves, credit ratings, and current market prices. The Company verifies the results of trustees or custodians and evaluates the pricing classification of these securities by performing analyses using other third-party sources.

United States treasuries - Valued at the closing price of each security.

Bank loans - These securities consist of senior secured term loans of publicly traded and privately held United States and non-United States floating rate obligations (principally corporations of non-investment grade rating). The fair value is determined through third-party pricing models that primarily utilize dealer quoted current market prices. The Company verifies the results of trustees or custodians and evaluates the pricing classification of these securities by performing analyses using other third-party sources.

Equity securities - These securities consist of direct investments in the stock of publicly traded companies. Such investments are valued based on the closing price reported in an active market on which the individual securities are traded. As such, the direct investments are classified as Level 1.

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Real estate - Consists of direct investments in the stock of publicly traded companies and investments in pooled funds that invest directly in real estate. The publicly traded companies are valued based on the closing price reported in an active market on which the individual securities are traded and as such are classified as Level 1. The pooled funds rely on appraisal based valuations and as such are classified as Level 3.

Cash equivalents - Primarily certificates of deposit, commercial paper, and repurchase agreements.

Exchange traded funds - Valued at the closing price of the exchange traded fund's shares.

Money market funds - Money market funds measured at fair value using the net asset value per share practical expedient have not been categorized in the fair value hierarchy and are being presented in the tables above to permit a reconciliation of the fair value hierarchy to the total plan assets.

Other - Primarily insurance contracts for international plans and also futures contracts and over-the-counter options. These investments are valued based on the closing prices of future contracts or indices as available on Bloomberg or similar service, private credit and private equity investments.

For additional information regarding fair value measurements, see Note 12.

Defined Contribution Plans

The Company has various defined contribution benefit plans, primarily consisting of the plans in the United States. The total contributions related to these plans are charged to expense and were as follows:

2019	$	130
2018	124
2017	114

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Note 8. COMMITMENTS AND 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 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 could result in plaintiffs suing Pepsi under various theories. Cooper submitted various expert reports and, among other things, Cooper’s experts opined that Pepsi had 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 believed that no additional amount should be contributed. Pepsi argued that an additional $347 should be contributed. Cooper and its expert disagreed with Pepsi’s argument and believed that Pepsi’s recalculation was flawed and failed to comply with the instructions of the panel. On August 23, 2018, the panel issued its final award and ordered Cooper to pay $293 to Pneumo Abex. On August 30, 2018, Pepsi sought to confirm the award in Texas state court, which Cooper opposed on October 9, 2018. Cooper further requested that the court vacate the award on various grounds, including that Cooper was prejudiced by the conduct of the proceedings, the panel exceeded its powers, and because the panel denied Cooper a full and fair opportunity to present certain evidence. The court confirmed the award at the confirmation hearing, which was held on October 12, 2018. On November 2, 2018, the Company appealed. On November 28, 2018, the Company paid $297, the full judgment plus accrued post-judgment interest, to Pneumo Abex and preserved its rights, including to appeal. On April 25, 2019, the appeal that Cooper filed was dismissed.

Environmental Contingencies

Eaton has established policies to ensure that its operations are conducted in keeping with good corporate citizenship and with a positive commitment to the protection of the natural and workplace environments. The Company's manufacturing facilities are required to be certified to ISO 14001, an international standard for environmental management systems. The Company routinely reviews EHS performance at each of its facilities and continuously strives to improve pollution prevention.

Eaton is involved in remedial response and voluntary environmental remediation at a number of sites, including certain of its currently-owned or formerly-owned plants. The Company has also been named a potentially responsible party under the United States federal Superfund law, or the state equivalents thereof, at a number of disposal sites. The Company became involved in these sites as a result of government action or in connection with business acquisitions. At the end of 2019, the Company was involved with a total of 111 sites worldwide, including the Superfund sites mentioned above, with none of these sites being individually significant to the Company.

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Remediation activities, generally involving soil and/or groundwater contamination, include pre-cleanup activities such as fact finding and investigation, risk assessment, feasibility study, design and action planning, performance (where actions may range from monitoring, to removal of contaminants, to installation of longer-term remediation systems), and operation and maintenance of a remediation system. The extent of expected remediation activities and costs varies by site. A number of factors affect the cost of environmental remediation, including the number of parties involved at a particular site, the determination of the extent of contamination, the length of time the remediation may require, the complexity of environmental regulations, and the continuing advancement of remediation technology. Taking these factors into account, Eaton has estimated the costs of remediation, which will be paid over a period of years. The Company accrues an amount on an undiscounted basis, consistent with the estimates of these costs, when it is probable that a liability has been incurred. Actual results may differ from these estimates. At December 31, 2019 and 2018, the Company had an accrual totaling $104 and $116, respectively, for these costs.

Based upon Eaton's analysis and subject to the difficulty in estimating these future costs, the Company expects that any sum it may be required to pay in connection with environmental matters is not reasonably possible to exceed the recorded liability by an amount that would have a material effect on its financial position, results of operations or cash flows.

Warranty Accruals

Product warranty accruals are established at the time the related sale is recognized through a charge to Cost of products sold. Warranty accrual estimates are based primarily on historical warranty claim experience and specific customer contracts. Provisions for warranty accruals are comprised of basic warranties for products sold, as well as accruals for product recalls and other events when they are known and estimable. A summary of the current and long-term warranty accruals follows:

	2019			2018			2017
Balance at January 1	$	176		$	188		$	180
Provision	204			139			163
Settled	(175		)	(145		)	(156		)
Other	(2		)	(6		)	1
Warranty accruals reclassified to held for sale	(16		)	—			—
Balance at December 31	$	187		$	176		$	188

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Note 9. INCOME TAXES

Eaton Corporation plc is domiciled in Ireland. Income (loss) before income taxes and income tax (benefit) expense are summarized below based on the geographic location of the operation to which such earnings and income taxes are attributable.

	Income (loss) before income taxes
	2019			2018			2017
Ireland	$	(201	)	$	(365	)	$	(1,090	)
Foreign	2,792			2,789			4,458
Total income before income taxes	$	2,591		$	2,424		$	3,368

	Income tax expense (benefit)
	2019			2018			2017
Current
Ireland	$	26		$	47		$	1
Foreign	410			370			357
Total current income tax expense	436			417			358
Deferred
Ireland	3			6			—
Foreign	(61		)	(145		)	24
Total deferred income tax expense (benefit)	(58		)	(139		)	24
Total income tax expense	$	378		$	278		$	382

Reconciliations of income taxes from the Ireland national statutory rate of 25% to the consolidated effective income tax rate follow:

	2019		2018		2017
Income taxes at the applicable statutory rate	25.0	%	25.0	%	25.0	%
Ireland operations
Ireland tax on trading income	(1.0	)%	(2.0	)%	—	%
Nondeductible interest expense	3.9	%	7.8	%	8.2	%
Ireland Other - net	0.1	%	0.1	%	—	%
Foreign operations
U.S. federal tax rate change	—	%	—	%	(7.5	)%
U.S. tax on foreign earnings	—	%	—	%	4.8	%
U.S. foreign tax credit	0.8	%	(0.2	)%	(3.9	)%
Tax on foreign currency loss	—	%	(1.6	)%	—	%
Earnings taxed at other than    the applicable statutory tax rate	(14.8	)%	(19.6	)%	(21.2	)%
Other items	2.5	%	2.3	%	3.1	%
Worldwide operations
Adjustments to tax liabilities	(0.5	)%	1.1	%	(1.8	)%
Adjustments to valuation allowances	(1.4	)%	(1.4	)%	4.6	%
Effective income tax expense rate	14.6	%	11.5	%	11.3	%

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During 2019, income tax expense of $378 was recognized (an effective tax rate of 14.6%) compared to income tax expense of $278 in 2018 (an effective tax rate of 11.5%) and income tax expense of $382 in 2017 (an effective tax rate of 11.3%). The 2018 effective tax rate includes a tax benefit of $69 on the arbitration decision expense discussed in Note 8. The 2017 effective tax rate includes tax expense of $234 on the gain related to the sale of a business discussed in Note 2 and a tax benefit of $62 related to the U.S. Tax Cuts and Jobs Act (TCJA) which is discussed in further detail below. Excluding the impacts of the 2018 arbitration decision, the 2017 sale of business, and the 2017 TCJA, the effective tax rate was 12.8% in 2018 and 9.2% in 2017. The increase in the tax rate from 12.8% in 2018 to 14.6% in 2019 was primarily due to greater levels of income in higher tax jurisdictions. The increase from 9.2% in 2017 compared to 12.8% in 2018 was due to greater levels of income in higher tax jurisdictions and an increase in tax contingencies offset by net decreases of related valuation allowances.

The TCJA was enacted on December 22, 2017, which reduced the U.S. federal corporate tax rate from 35% to 21% and required a one-time transition tax on certain unremitted earnings of non-U.S. subsidiaries owned directly or indirectly by U.S. subsidiaries of the Company. In December 2017, the Company recorded a provisional tax benefit amount of $79 for the impact of the tax rate change on deferred tax balances and a provisional tax expense of $17 for the one-time transition tax, for a net tax benefit of $62. During 2018, the Company finalized its accounting for the 2017 enactment of the TCJA and recorded an adjustment of $17 tax expense, primarily related to the one-time transition tax, resulting in a final net tax benefit of $45.

No provision has been made for income taxes on undistributed earnings of foreign subsidiaries of approximately $28.5 billion at December 31, 2019, since it is the Company's intention to indefinitely reinvest undistributed earnings of its foreign subsidiaries. The Company expects to deploy capital to those markets which offer particularly attractive growth opportunities. The cash that is permanently reinvested is typically used to expand operations either organically or through acquisitions. It is not practicable to estimate the additional income taxes and applicable withholding taxes that would be payable on the remittance of such undistributed earnings.

Worldwide income tax payments, net of tax refunds, follow:

2019	$	425
2018	379
2017	288

Deferred Income Tax Assets and Liabilities

Components of noncurrent deferred income taxes follow:

	2019			2018
	Noncurrent assets and liabilities			Noncurrent assets and liabilities
Accruals and other adjustments
Employee benefits	$	514		$	481
Depreciation and amortization	(1,245		)	(1,198		)
Other accruals and adjustments	498			434
Ireland income tax loss carryforwards	1			1
Foreign income tax loss carryforwards	1,826			1,915
Foreign income tax credit carryforwards	349			396
Valuation allowance for income tax loss and income tax    credit carryforwards	(1,914		)	(2,032		)
Other valuation allowances	(52		)	(53		)
Total deferred income taxes	(23		)	(56		)
Deferred income taxes reported as assets held for sale	1			—
Deferred income taxes	$	(24	)	$	(56	)

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At December 31, 2019, Eaton Corporation plc and certain Irish subsidiaries had tax loss carryforwards that are available to reduce future taxable income and tax liabilities. These carryforwards and their respective expiration dates are summarized below:

	2020 through 2024		2025 through 2029		2030 through 2034		2035 through 2044		Not subject to expiration		Valuation allowance
Ireland income tax loss carryforwards	$	—	$	—	$	—	$	—	$	8	$	—
Ireland deferred income tax assets for income tax loss carryforwards	—		—		—		—		1		(1		)

At December 31, 2019, the Company's foreign subsidiaries had income tax loss carryforwards and income tax credit carryforwards that are available to reduce future taxable income or tax liabilities. These carryforwards and their respective expiration dates are summarized below:

	2020 through 2024		2025 through 2029		2030 through 2034		2035 through 2044		Not subject to expiration		Valuation allowance
Foreign income tax loss carryforwards	$	874	$	52	$	7,931	$	367	$	3,233	$	—
Foreign deferred income tax assets for income tax loss carryforwards	108		23		819		108		797		(1,690		)
Foreign deferred income tax assets for income tax loss carryforwards after ASU 2013-11	90		22		810		108		796		(1,690		)
Foreign income tax credit carryforwards	115		189		40		90		30		(223		)
Foreign income tax credit carryforwards after ASU 2013-11	111		165		24		19		30		(223		)

Recoverability of Deferred Income Tax Assets

Eaton is subject to the income tax laws in the jurisdictions in which it operates. In order to determine its income tax provision for financial statement purposes, Eaton must make significant estimates and judgments about its business operations in these jurisdictions. These estimates and judgments are also used in determining the deferred income tax assets and liabilities that have been recognized for differences between the financial statement and income tax basis of assets and liabilities, and income tax loss carryforwards and income tax credit carryforwards.

Management evaluates the realizability of deferred income tax assets for each of the jurisdictions in which it operates. If the Company experiences cumulative pre-tax income in a particular jurisdiction in the three-year period including the current and prior two years, management normally concludes that the deferred income tax assets will more likely than not be realizable and no valuation allowance is recognized, unless known or planned operating developments, or changes in tax laws, would lead management to conclude otherwise. However, if the Company experiences cumulative pre-tax losses in a particular jurisdiction in the three-year period including the current and prior two years, management then considers a series of factors in the determination of whether the deferred income tax assets can be realized. These factors include historical operating results, known or planned operating developments, the period of time over which certain temporary differences will reverse, consideration of the utilization of certain deferred income tax liabilities, tax law carryback capability in the particular country, prudent and feasible tax planning strategies, changes in tax laws, and estimates of future earnings and taxable income using the same assumptions as those used for the Company's goodwill and other impairment testing. After evaluation of these factors, if the deferred income tax assets are expected to be realized within the tax carryforward period allowed for that specific country, management would conclude that no valuation allowance would be required. To the extent that the deferred income tax assets exceed the amount that is expected to be realized within the tax carryforward period for a particular jurisdiction, management would establish a valuation allowance.

Applying the above methodology, valuation allowances have been established for certain deferred income tax assets to the extent they are not expected to be realized within the particular tax carryforward period.

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Unrecognized Income Tax Benefits

A summary of gross unrecognized income tax benefits follows:

	2019			2018			2017
Balance at January 1	$	913		$	735		$	629
Increases and decreases as a result of positions taken during prior years
Transfers from valuation allowances	15			2			—
Other increases, including currency translation	22			164			10
Other decreases, including currency translation	(10		)	(35		)	(30		)
Increases as a result of positions taken during the current year	80			69			162
Decreases relating to settlements with tax authorities	(16		)	(3		)	(10		)
Decreases as a result of a lapse of the applicable statute of limitations	(3		)	(19		)	(26		)
Balance at December 31	$	1,001		$	913		$	735

Eaton recognizes an income tax benefit from an uncertain tax position only if it is more likely than not that the benefit would be sustained upon examination by taxing authorities, based on the technical merits of the position. The Company evaluates and adjusts the amount of unrecognized income tax benefits based on changes in facts and circumstances. The Company does not enter into any of the United States Internal Revenue Service (IRS) Listed Transactions as set forth in Treasury Regulation 1.6011-4.

If all unrecognized income tax benefits were recognized, the net impact on the provision for income tax expense would be $660, which includes the impact of deferred tax netting pursuant to ASU 2013-11.

As of December 31, 2019 and 2018, Eaton had accrued approximately $93 and $74, respectively, for the payment of worldwide interest and penalties, which are not included in the table of unrecognized income tax benefits above. Eaton recognizes interest and penalties related to unrecognized income tax benefits in the provision for income tax expense.

The resolution of the majority of Eaton's unrecognized income tax benefits is dependent upon uncontrollable factors such as the prospect of retroactive regulations; new case law; and the willingness of the income tax authority to settle the issue, including the timing thereof. Therefore, for the majority of unrecognized income tax benefits, it is not reasonably possible to estimate the increase or decrease in the next 12 months. For each of the unrecognized income tax benefits where it is possible to estimate the increase or decrease in the balance within the next 12 months, the Company does not anticipate any significant change.

Eaton or its subsidiaries file income tax returns in Ireland and many countries around the world. With only a few exceptions, Irish and non-United States subsidiaries of Eaton are no longer subject to examinations for years before 2012.

The United States Internal Revenue Service (“IRS”) has completed its examination of the consolidated income tax returns of the Company’s United States subsidiaries (“Eaton US”) for 2005 through 2010 and has issued Statutory Notices of Deficiency (Notices) as discussed below. The statute of limitations on these tax years remains open until the matters are resolved. The IRS has also completed its examination of the consolidated income tax returns of Eaton US for 2011 through 2013 and has issued proposed adjustments as discussed below. The statute of limitations on these tax years remains open until June 30, 2021. The IRS is currently examining tax years 2014 through 2016. The statute of limitations for tax years 2014 through 2016 is open until May 31, 2021. Tax years 2017 and 2018 are still subject to examination by the IRS.

Eaton US is also under examination for the income tax filings in various states and localities of the United States. Income tax returns of states and localities within the United States will be reopened to the extent of United States federal income tax adjustments, if any, going back to 2005 when those audit years are finalized. Some states and localities might not limit their assessment to the United States federal adjustments, and may require the opening of the entire tax year.

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In 2011, the IRS issued a Notice for Eaton US for the 2005 and 2006 tax years (the 2011 Notice). The 2011 Notice proposed assessments of $75 in additional taxes plus $52 in penalties related primarily to transfer pricing adjustments for products manufactured in the Company's facilities in Puerto Rico and the Dominican Republic and sold to affiliated companies located in the United States. Eaton US has set its transfer prices for products sold between these affiliates at the same prices that Eaton US sells such products to third parties as required by two successive Advance Pricing Agreements (APAs) Eaton US entered into with the IRS that governed the 2005-2010 tax years. Eaton US has continued to apply the arms-length transfer pricing methodology for 2011 through the current reporting period. Immediately prior to the 2011 Notice being issued, the IRS sent a letter stating that it was retrospectively canceling the APAs. Eaton US contested the proposed assessments in United States Tax Court. The case involved both whether the APAs should be enforced and, if not, the appropriate transfer pricing methodology. On July 26, 2017, the United States Tax Court issued a ruling in which it agreed with Eaton US that the IRS must abide by the terms of the APAs for the tax years 2005-2006. The Tax Court’s ruling on the APAs did not have a material impact on Eaton’s consolidated financial statements.

In 2014, Eaton US received a Notice from the IRS for the 2007 through 2010 tax years (the 2014 Notice) proposing assessments of $190 in additional taxes plus $72 in penalties, net of agreed credits and deductions, which the Company has also contested in Tax Court. The proposed assessments pertain primarily to the same transfer pricing issues and APA for which the Tax Court has issued its ruling during 2017 as noted above. The Company believes that the Tax Court’s ruling for tax years 2005-2006 will also be applicable to the 2007-2010 years. Following the issuance of the Tax Court’s ruling, Eaton and the IRS recognized that the ruling on the enforceability of the APAs did not address a secondary issue regarding the transfer pricing for a certain royalty paid from 2006-2010. Eaton US reported a consistent royalty rate for 2006-2010. The IRS has agreed to the royalty rate as reported by Eaton US in 2006. Although the IRS has not proposed an alternative rate, it has not agreed to apply the same royalty rate in the 2007-2010 years.

  The 2014 Notice also includes a separate proposed assessment involving the recognition of income for several of Eaton US’s controlled foreign corporations. The Company believes that the proposed assessment is without merit and is contesting the matter in Tax Court. In October 2017, Eaton and the IRS both moved for partial summary judgment on this issue. On February 25, 2019 the Tax Court granted the IRS’s motion for partial summary judgment and denied Eaton’s. The Company intends to appeal the Tax Court’s partial summary judgment decision to the United States Sixth Circuit Court of Appeals. The Company believes that it will be successful on appeal and has not recorded any additional impact of the Tax Court's decision in its consolidated financial statements. The total potential impact of the Tax Court's partial summary judgment decision on the controlled foreign corporation income recognition issue is not estimable until all matters in the open tax years have been resolved.

In 2018 the IRS completed its examination of the Eaton US tax years 2011 through 2013 and has proposed adjustments to certain transfer pricing tax positions, including adjustments similar to those proposed in the 2011 and 2014 Notices for products manufactured in the Company’s facilities in Puerto Rico and the Dominican Republic and sold to affiliated companies located in the United States. The IRS also proposed adjustments involving the recognition of income for several of Eaton US’s controlled foreign corporation, which is the same issue included in the 2014 Notice described above and subject to litigation in Tax Court. The Company intends to pursue its administrative appeals alternatives with respect to each of the IRS adjustments and believes that final resolution of the proposed adjustments will not have a material impact on its consolidated financial statements.

During 2010, the Company received a tax assessment, which included interest and penalties, in Brazil for the tax years 2005 through 2008 that relates to the amortization of certain goodwill generated from the acquisition of third-party businesses and corporate reorganizations. In 2018 the Company received an unfavorable result at the final tax administrative appeals level, resulting in an alleged tax deficiency of $31 plus $84 of interest and penalties (translated at the December 31, 2019 exchange rate). The Company is challenging the assessment in the judicial system. During 2014, the Company received a tax assessment, which included interest and penalties, for the 2009 through 2012 tax years (primarily relating to the same issues concerning the 2005 through 2008 tax years). In November 2019, the Company received an unfavorable result at the final tax administrative appeals level, resulting in an alleged tax deficiency of $33 plus $117 of interest and penalties (translated at the December 31, 2019 exchange rate). The Company plans to challenge the assessment in the judicial system. Challenges in the judicial system are expected to take up to 10 years to resolve. The Company continues to believe that final resolution of both of the assessments will not have a material impact on its consolidated financial statements.

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Note 10. EATON SHAREHOLDERS' EQUITY

There are 750 million Eaton ordinary shares authorized ($0.01 par value per share), 413.3 million and 423.6 million of which were issued and outstanding at December 31, 2019 and 2018, respectively. Eaton's Memorandum and Articles of Association authorized 40 thousand deferred ordinary shares (€1.00 par value per share) and 10 thousand preferred A shares ($1.00 par value per share), all of which were issued and outstanding at December 31, 2019 and 2018, and 10 million serial preferred shares ($0.01 par value per share), none of which is outstanding at December 31, 2019 and 2018. At December 31, 2019, there were 12,072 holders of record of Eaton ordinary shares. Additionally, 17,699 current and former employees were shareholders through participation in the Eaton Savings Plan, the Eaton Personal Investment Plan, or the Eaton Puerto Rico Retirement Savings Plan.

On February 24, 2016, the Board of Directors adopted a share repurchase program for share repurchases up to $2,500 of ordinary shares (2016 Program). Under the 2016 Program, the ordinary shares were expected to be repurchased over time, depending on market conditions, the market price of ordinary shares, capital levels, and other considerations. During 2018 and 2017, 13.2 million and 11.5 million shares, respectively, were purchased on the open market under the 2016 Program for a total cost of $1,002 and $850, respectively. An additional 4.3 million shares were purchased on the open market in December 2018 outside of the 2016 Program for a total cost of $298. On February 27, 2019, the Board of Directors adopted a new share repurchase program for share repurchases up to $5,000 of ordinary shares (2019 Program). Under the 2019 Program, the ordinary shares are expected to be repurchased over time, depending on market conditions, the market price of ordinary shares, capital levels, and other considerations. During 2019, 12.5 million ordinary shares were repurchased under the 2019 Program in the open market at a total cost of $1,000.

Eaton has deferral plans that permit certain employees and directors to defer a portion of their compensation. A trust contains $5 and $8 of ordinary shares and marketable securities at December 31, 2019 and 2018, respectively, to fund a portion of these liabilities. The marketable securities were included in Other assets and the ordinary shares were included in Shareholders' equity at historical cost.

On February 26, 2020, Eaton's Board of Directors declared a quarterly dividend of $0.73 per ordinary share, a 3% increase over the dividend paid in the fourth quarter of 2019. The dividend is payable on March 27, 2020 to shareholders of record on March 13, 2020.

Comprehensive Income (Loss)

Comprehensive income (loss) consists primarily of net income, currency translation and related hedging instruments, changes in unrecognized costs of pension and other postretirement benefits, and changes in the effective portion of open derivative contracts designated as cash flow hedges. The following table summarizes the pre-tax and after-tax amounts recognized in Comprehensive income (loss):

	2019						2018						2017
	Pre-tax			After-tax			Pre-tax			After-tax			Pre-tax			After-tax
Currency translation and related hedging instruments	$	15		$	16		$	(613	)	$	(609	)	$	800		$	807
Pensions and other postretirement benefits
Prior service credit (cost) arising during the year	(2		)	(2		)	(25		)	(20		)	(1		)	—
Net gain (loss) arising during the year	(294		)	(232		)	(358		)	(274		)	215			169
Currency translation	(16		)	(13		)	37			29			(67		)	(53		)
Other	—			—			—			5			—			(5		)
Amortization of actuarial loss and prior service cost    reclassified to earnings	148			117			168			121			188			130
	(164		)	(130		)	(178		)	(139		)	335			241
Cash flow hedges
Gain (loss) on derivatives designated as cash flow hedges	(33		)	(27		)	(8		)	(6		)	(24		)	(15		)
Changes in cash flow hedges reclassified to earnings	(5		)	(4		)	16			13			17			11
Cash flow hedges, net of reclassification adjustments	(38		)	(31		)	8			7			(7		)	(4		)
Other comprehensive income (loss) attributable to Eaton ordinary shareholders	$	(187	)	$	(145	)	$	(783	)	$	(741	)	$	1,128		$	1,044

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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 January 1, 2019	$	(2,864	)	$	(1,278	)	$	(3	)	$	(4,145	)
Other comprehensive income (loss) before     reclassifications	16			(247		)	(27		)	(258		)
Amounts reclassified from Accumulated other    comprehensive loss (income)	—			117			(4		)	113
Net current-period Other comprehensive    income (loss)	16			(130		)	(31		)	(145		)
Balance at December 31, 2019	$	(2,848	)	$	(1,408	)	$	(34	)	$	(4,290	)

The reclassifications out of Accumulated other comprehensive loss follow:

	December 31, 2019			Consolidated Statements of Income classification
Amortization of defined benefits pension and other    postretirement benefits items
Actuarial loss and prior service cost	$	(148	)	1
Tax benefit	31
Total, net of tax	(117		)
Gains and (losses) on cash flow hedges
Currency exchange contracts	5			Net sales and Cost of products sold
Tax expense	(1		)
Total, net of tax	4
Total reclassifications for the period	$	(113	)

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

(Shares in millions)	2019		2018		2017
Net income attributable to Eaton ordinary shareholders	$	2,211	$	2,145	$	2,985
Weighted-average number of ordinary shares outstanding - diluted	420.8		436.9		447
Less dilutive effect of equity-based compensation	1.8		2.6		2.5
Weighted-average number of ordinary shares outstanding - basic	419.0		434.3		444.5
Net income per share attributable to Eaton ordinary shareholders
Diluted	$	5.25	$	4.91	$	6.68
Basic	5.28		4.93		6.71

In 2019, 2018, and 2017, 0.8 million, 0.5 million, and 0.4 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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Note 11. EQUITY-BASED COMPENSATION

Eaton recognizes equity-based compensation expense based on the grant date fair value of the award. Awards with service conditions or both service and market conditions are expensed over the period during which an employee is required to provide service in exchange for the award. Awards with both service and performance conditions are expensed over the period an employee is required to provide service based on the number of units for which achievement of the performance objective is probable. The Company estimates forfeitures as part of recording equity-based compensation expense.

Restricted Stock Units and Awards

Restricted stock units (RSUs) and restricted stock awards (RSAs) have been issued to certain employees and directors. The fair value of RSUs awarded in 2017, 2018 and 2019, and RSAs are determined based on the closing market price of the Company’s ordinary shares at the date of grant. The RSUs entitle the holder to receive one ordinary share for each RSU upon vesting, generally over three years. RSAs are issued and outstanding at the time of grant, but remain subject to forfeiture until vested, generally over three or four years. A summary of the RSU and RSA activity for 2019 follows:

(Restricted stock units and awards in millions)	Number of restricted stock units and awards		Weighted-average fair value per unit and award
Non-vested at January 1	2.1		$	68.56
Granted	0.9		80.59
Vested	(1.2	)	65.45
Forfeited	(0.1	)	76.24
Non-vested at December 31	1.7		$	76.79

Information related to RSUs and RSAs follows:

	2019		2018		2017
Pre-tax expense for RSUs and RSAs	$	57	$	59	$	66
After-tax expense for RSUs and RSAs	45		46		43
Fair value of vested RSUs and RSAs	103		71		73

As of December 31, 2019, total compensation expense not yet recognized related to non-vested RSUs and RSAs was $75, and the weighted-average period in which the expense is expected to be recognized is 2.3 years. Excess tax benefit for RSUs and RSAs totaled $3, $3 and $2 for 2019, 2018, and 2017, respectively.

Performance Share Units

In February 2019, 2018 and 2017, the Compensation and Organization Committee of the Board of Directors approved the grant of performance share units (PSUs) to certain employees that vest based on the satisfaction of a three-year service period and total shareholder return relative to that of a group of peers. Awards earned at the end of the three-year vesting period range from 0% to 200% of the targeted number of PSUs granted based on the ranking of total shareholder return of the Company, assuming reinvestment of all dividends, relative to a defined peer group of companies. Equity-based compensation expense for these PSUs is recognized over the period during which an employee is required to provide service in exchange for the award. Upon vesting, dividends that have accumulated during the vesting period are paid on earned awards.

The Company uses a Monte Carlo simulation to estimate the fair value of PSUs with market conditions. The principal assumptions utilized in valuing these PSUs include the expected stock price volatility (based on the most recent 3-year period as of the grant date) and the risk-free interest rate (an estimate based on the yield of United States Treasury zero coupon bonds with a 3-year maturity as of the grant date). A summary of the assumptions used in determining fair value of these PSUs follows:

	2019			2018			2017
Expected volatility	21		%	22		%	24		%
Risk-free interest rate	2.42		%	2.38		%	1.46		%
Weighted-average fair value of PSUs granted	$	92.50		$	100.86		$	80.07

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A summary of these PSUs that vested follows:

(Performance share units in millions)	2019		2018
Percent payout	130	%	116	%
Shares vested	0.3		0.5

A summary of the 2019 activity for these PSUs follows:

(Performance share units in millions)	Number of performance share units		Weighted-average fair value per unit
Non-vested at January 1	0.6		$	89.95
Granted1	0.3		92.50
Adjusted for performance results achieved2	0.1		80.07
Vested	(0.3	)	80.07
Forfeited	(0.1	)	90.91
Non-vested at December 31	0.6		$	96.14

¹ Performance shares granted assuming the Company will perform at target relative to peers.

² Adjustments for the number of shares vested under the 2017 awards at the end of the three-year performance period ended December 31, 2019, being higher than the target number of shares.

In February 2016, performance share units were granted to certain employees that entitles the holder to receive one ordinary share for each PSU that vest based on the satisfaction of a three-year service period and the achievement of certain performance metrics over that same period. Upon vesting, PSU holders receive dividends that accumulate during the vesting period. The fair value of these PSUs is determined based on the closing market price of the Company's ordinary shares at the date of grant. Equity-based compensation expense is recognized over the period an employee is required to provide service based on the number of PSUs for which achievement of the performance objectives is probable. A summary of the 2019 activity for these PSUs follows:

(Performance share units in millions)	Number of performance share units		Weighted-average fair value per unit
Non-vested at January 1	0.1		$	56.55
Granted	—		—
Vested	(0.1	)	56.55
Forfeited	—		—
Non-vested at December 31	—		$	—

Information related to PSUs follows:

	2019		2018		2017
Pre-tax expense for PSUs	$	21	$	28	$	22
After-tax expense for PSUs	17		22		13

As of December 31, 2019, total compensation expense not yet recognized related to non-vested PSUs was $30 and the weighted-average period in which the expense is to be recognized is 1.7 years. Excess tax benefit for PSUs totaled $1 in 2019, and there was no excess tax benefit for PSUs in 2018 and 2017.

Stock Options

Under various plans, stock options have been granted to certain employees and directors to purchase ordinary shares at prices equal to fair market value on the date of grant. Substantially all of these options vest ratably during the three-year period following the date of grant and expire 10 years from the date of grant. Compensation expense is recognized for stock options based on the fair value of the options at the date of grant and amortized on a straight-line basis over the period the employee or director is required to provide service.

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The Company uses a Black-Scholes option pricing model to estimate the fair value of stock options. The principal assumptions utilized in valuing stock options include the expected stock price volatility (based on the most recent historical period equal to the expected life of the option); the expected option life (an estimate based on historical experience); the expected dividend yield; and the risk-free interest rate (an estimate based on the yield of United States Treasury zero coupon with a maturity equal to the expected life of the option). A summary of the assumptions used in determining the fair value of stock options follows:

	2019			2018			2017
Expected volatility	23		%	26		%	27		%
Expected option life in years	6.6			6.7			6.6
Expected dividend yield	3.2		%	3.0		%	2.8		%
Risk-free interest rate	1.9 to 2.6%			2.6 to 2.9%			1.8 to 2.1%
Weighted-average fair value of stock options granted	$	14.08		$	16.93		$	15.11

A summary of stock option activity follows:

(Options in millions)	Weighted-average exercise price per option		Options		Weighted-average remaining contractual life in years	Aggregate intrinsic value
Outstanding at January 1, 2019	$	65.96	4.6
Granted	80.47		0.8
Exercised	60.47		(1.2	)
Forfeited and canceled	74.08		(0.1	)
Outstanding at December 31, 2019	$	69.95	4.1		6.2	$	102.5
Exercisable at December 31, 2019	$	65.59	2.8		5.2	$	82.6
Reserved for future grants at December 31, 2019			9.3

The aggregate intrinsic value in the table above represents the total excess of the $94.72 closing price of Eaton ordinary shares on the last trading day of 2019 over the exercise price of the stock option, multiplied by the related number of options outstanding and exercisable. The aggregate intrinsic value is not recognized for financial accounting purposes and the value changes based on the daily changes in the fair market value of the Company's ordinary shares.

Information related to stock options follows:

	2019		2018		2017
Pre-tax expense for stock options	$	9	$	11	$	11
After-tax expense for stock options	7		9		8
Proceeds from stock options exercised	67		29		66
Income tax benefit related to stock options exercised
Tax benefit classified in operating activities in the Consolidated    Statements of Cash Flows	4		3		13
Intrinsic value of stock options exercised	29		17		41
Total fair value of stock options vested	$	9	$	11	$	11
Stock options exercised, in millions of options	1.2		0.6		1.5

As of December 31, 2019, total compensation expense not yet recognized related to non-vested stock options was $10, and the weighted-average period in which the expense is expected to be recognized is 1.8 years.

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Note 12. 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		Quoted prices in active markets for identical assets (Level 1)		Other observable inputs (Level 2)		Unobservable inputs (Level 3)
2019
Cash	$	370	$	370	$	—	$	—
Short-term investments	221		221		—		—
Net derivative contracts	53		—		53		—
2018
Cash	$	283	$	283	$	—	$	—
Short-term investments	157		157		—		—
Net derivative contracts	14		—		14		—

Eaton values its financial instruments using an industry standard market approach, in which prices and other relevant information is generated by market transactions involving identical or comparable assets or liabilities. No financial instruments were measured using unobservable inputs.

Other Fair Value Measurements

Long-term debt and the current portion of long-term debt had a carrying value of $8,067 and fair value of $8,638 at December 31, 2019 compared to $7,107 and $7,061, respectively, at December 31, 2018. The fair value of Eaton's debt instruments was estimated using prevailing market interest rates on debt with similar creditworthiness, terms and maturities and is considered a Level 2 fair value measurement.

As discussed in Note 2, on July 31, 2017 Eaton sold a 50% interest in its heavy-duty and medium-duty commercial vehicle automated transmission business to Cummins, Inc. Eaton's remaining 50% interest was remeasured to a fair value of $600 on July 31, 2017 using a discounted cash flow model which is considered a Level 3 fair value measurement. The model includes estimates of future cash flows, future growth rates, terminal value amounts, and the applicable weighted-average cost of capital used to discount those estimated cash flows. Eaton accounts for its investment on the equity method of accounting.

Short-Term Investments

Eaton invests excess cash generated from operations in short-term marketable investments. A summary of the carrying value, which approximates the fair value due to the short-term maturities of these investments, follows:

	2019		2018
Time deposits and certificates of deposit with banks	$	150	$	111
Money market investments	71		46
Total short-term investments	$	221	$	157

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Note 13. 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, 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 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 gain or loss from the derivative financial instrument is recognized in Accumulated other comprehensive income 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 gain or loss from the derivative financial instrument is recognized in Accumulated other comprehensive income 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 is classified in the same line of the Consolidated Statements of Income as the offsetting loss or gain on the hedged item. The cash flows resulting from these financial instruments are classified in operating activities on the 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.

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 had a carrying value on an after-tax basis of $1,845 and on a pre-tax basis of $623 at December 31, 2019 and 2018, respectively. See Note 6 for additional information about debt.

Interest Rate Risk

Eaton has entered into fixed-to-floating interest rate swaps to manage interest rate risk of certain long-term debt. These interest rate swaps are accounted for as fair value hedges of certain long-term debt. The maturity of the swap corresponds with the maturity of the debt instrument as noted in the table of long-term debt in Note 6. Eaton also entered into several forward starting floating-to-fixed interest rate swaps to manage interest rate risk on a future anticipated debt issuance.

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A summary of interest rate swaps outstanding at December 31, 2019, follows:

Fixed-to-Floating Interest Rate Swaps

Notional amount	Fixed interest rate received	Floating interest rate paid	Basis for contracted floating interest rate paid
150	3.88%	4.35%	1 month LIBOR + 2.12%
275	3.47%	3.97%	1 month LIBOR + 1.74%
100	8.10%	8.13%	1 month LIBOR + 5.90%
1,400	2.75%	2.85%	1 month LIBOR + 0.58%
200	3.68%	3.30%	1 month LIBOR + 1.07%
25	7.63%	4.87%	6 month LIBOR + 2.48%
50	7.65%	5.21%	6 month LIBOR + 2.57%
25	5.45%	2.79%	6 month LIBOR + 0.28%

Forward Starting Floating-to-Fixed Interest Rate Swaps

Notional amount		Floating interest rate to be received	Fixed interest rate to be paid	Basis for contracted floating interest rate received
$	50	—%	3.10%	3 month LIBOR + 0.00%
50		—%	3.06%	3 month LIBOR + 0.00%
50		—%	2.80%	3 month LIBOR + 0.00%
50		—%	2.81%	3 month LIBOR + 0.00%
50		—%	2.64%	3 month LIBOR + 0.00%
50		—%	2.64%	3 month LIBOR + 0.00%
50		—%	2.30%	3 month LIBOR + 0.00%
50		—%	2.08%	3 month LIBOR + 0.00%
50		—%	1.77%	3 month LIBOR + 0.00%
50		—%	1.51%	3 month LIBOR + 0.00%

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Derivative Financial Statement Impacts

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

	Notional amount		Other  current assets		Other noncurrent assets		Other current liabilities		Other noncurrent liabilities		Type of hedge	Term
December 31, 2019
Derivatives designated as hedges
Fixed-to-floating interest rate swaps	$	2,225	$	—	$	57	$	—	$	—	Fair value	12 months to 15 years
Forward starting floating-to-fixed interest rate swaps	500		—		3		—		42		Cash flow	13 to 33 years
Currency exchange contracts	1,146		14		3		11		6		Cash flow	1 to 36 months
Commodity contracts	9		—		—		—		—		Cash flow	1 to 9 months
Total			$	14	$	63	$	11	$	48
Derivatives not designated as hedges
Currency exchange contracts	$	4,975	$	48			$	13				1 to 12 months
Commodity contracts	3		—				—					1 month
Total			$	48			$	13

December 31, 2018
Derivatives designated as hedges
Fixed-to-floating interest rate swaps	$	2,550	$	—	$	22	$	1	$	26	Fair value	3 months to 16 years
Forward starting floating-to-fixed interest rate swaps	100		—		—		—		3		Cash flow	34 years
Currency exchange contracts	951		19		2		11		8		Cash flow	1 to 36 months
Total			$	19	$	24	$	12	$	37
Derivatives not designated as hedges
Currency exchange contracts	$	3,886	$	40			$	20				1 to 12 months
Total			$	40			$	20

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 receivables, payables 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. For the years ended December 31, 2019 and 2018, $54 of cash inflow and $110 of cash outflow, respectively, resulting from the settlement of these derivatives have been classified in investing activities in the Consolidated Statement of Cash Flows. The net cash flow from the settlement of these derivatives has been presented in operating activities in 2017 and have not been restated as such amounts are not material.

As of December 31, 2019, the volume of outstanding commodity contracts that were entered into to hedge forecasted transactions:

Commodity	December 31, 2019		Term
Copper	2	millions of pounds	1 to 4 months
Gold	2,158	Troy ounces	1 to 9 months

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The following amounts were recorded on the Consolidated Balance Sheets related to fixed-to-floating interest rate swaps:

	Carrying amount of the hedged assets (liabilities)			Cumulative amount of fair value hedging adjustment included in the carrying amount of the hedged asset (liabilities) (a)
Location on Consolidated Balance Sheets	December 31, 2019			December 31, 2019
Long-term debt	$	(2,838	)	$	(97	)

^(a) At December 31, 2019, these amounts include the cumulative liability amount of fair value hedging adjustments remaining for which the hedge accounting has been discontinued of $40.

The impact of hedging activities to the Consolidated Statements of Income are as follow:

	2019
	Net Sales			Cost of products sold			Interest expense - net
Amounts from Consolidated Statements of Income	$	21,390		$	14,338		$	236
Gain (loss) on derivatives designated as cash flow hedges
Currency exchange contracts
Hedged item	$	7		$	(12	)	$	—
Derivative designated as hedging instrument	(7		)	12			—
Commodity contracts
Hedged item	$	—		$	—		$	—
Derivative designated as hedging instrument	—			—			—
Gain (loss) on derivatives designated as fair value hedges
Fixed-to-floating interest rate swaps
Hedged item	$	—		$	—		$	(62	)
Derivative designated as hedging instrument	—			—			62

The impact of derivatives not designated as hedges to the Consolidated Statements of Income are as follow:

	Gain (loss) recognized in Consolidated Statements of Income		Consolidated Statements of Income classification
	2019
Gain (loss) on derivatives not designated as hedges
Currency exchange contracts	$	73	Other income - net
Commodity Contracts	—		Cost of products sold
Total	$	73

66

The impact of derivative and non-derivative instruments designated as hedges to the Consolidated Statements 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
	2019			2018				2019		2018
Derivatives designated as cash flow hedges
Forward starting floating-to-fixed interest rate swaps	$	(36	)	$	(4	)	Interest expense - net	$	—	$	—
Currency exchange contracts	3			(4		)	Net sales and Cost of products sold	5		(16		)
Commodity contracts	—			—			Cost of products sold	—		—
Non-derivative designated as net investment hedges
Foreign currency denominated debt	15			47			Other income - net	—		—
Total	$	(18	)	$	39			$	5	$	(16	)

At December 31, 2019, a gain of $2 of estimated unrealized net gains or losses associated with our cash flow hedges were expected to be reclassified to income from Accumulated other comprehensive loss within the next twelve months. These reclassifications relate to our designated foreign currency and commodity hedges that will mature in the next 12 months.

Note 14. ACCOUNTS RECEIVABLE AND INVENTORY

Accounts Receivable

Eaton performs ongoing credit evaluation of its customers and maintains sufficient allowances for potential credit losses. The Company evaluates the collectability of its accounts receivable based on the length of time the receivable is past due and any anticipated future write-off based on historic experience. Accounts receivable balances are written off against an allowance for doubtful accounts after a final determination of uncollectability has been made. Accounts receivable are net of an allowance for doubtful accounts of $49 and $55 at December 31, 2019 and 2018.

Inventory

Inventory is carried at lower of cost or net realizable value using the first-in, first-out (FIFO) method. Cost components include raw materials, purchased components, direct labor, indirect labor, utilities, depreciation, inbound freight charges, purchasing and receiving costs, inspection costs, warehousing costs, and costs of the distribution network.

The components of inventory follow:

	2019		2018
Raw materials	$	986	$	1,077
Work-in-process	640		500
Finished goods	1,179		1,208
Total inventory	$	2,805	$	2,785

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Note 15. BUSINESS SEGMENT AND GEOGRAPHIC REGION INFORMATION

Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated on a regular basis by the chief operating decision maker, or decision making group, in deciding how to allocate resources to an individual segment and in assessing performance. Eaton’s segments are as follows:

Electrical Products and Electrical Systems and Services

The Electrical Products segment consists of electrical components, industrial components, residential products, single phase power quality, emergency lighting, fire detection, wiring devices, structural support systems, circuit protection, and lighting products. The Electrical Systems and Services segment consists of 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 principal markets for these segments are industrial, institutional, governmental, utility, commercial, residential and information technology. These products are used wherever there is a demand for electrical power in commercial buildings, data centers, residences, apartment and office buildings, hospitals, factories, utilities, and industrial and energy facilities. The segments share several common global customers, but a large number of customers are located regionally. Sales are made directly to original equipment manufacturers, utilities, and certain other end users, as well as through distributors, resellers, and manufacturers' representatives.

Hydraulics

The Hydraulics segment is a global leader in hydraulics components, systems and services for industrial and mobile equipment. Eaton offers a wide range of power products including pumps, motors and hydraulic power units; a broad range of controls and sensing products including valves, cylinders and electronic controls; a full range of fluid conveyance products including industrial and hydraulic hose, fittings, and assemblies, thermoplastic hose and tubing, couplings, connectors, and assembly equipment; filtration systems solutions; industrial drum and disc brakes; and golf grips. The principal markets for the Hydraulics segment include renewable energy, marine, agriculture, oil and gas, construction, mining, forestry, utility, material handling, truck and bus, machine tools, molding, primary metals, and power generation. Key manufacturing customers in these markets and other customers are located globally. Products are sold and serviced through a variety of channels.

Aerospace

The Aerospace segment is a leading global supplier of aerospace fuel, hydraulics, and pneumatic systems for commercial and military use. Products include hydraulic power generation systems for aerospace applications including pumps, motors, hydraulic power units, hose and fittings, electro-hydraulic pumps; controls and sensing products including valves, cylinders, electronic controls, electromechanical actuators, sensors, aircraft flap and slat systems and nose wheel steering systems; fluid conveyance products, including hose, thermoplastic tubing, fittings, adapters, couplings, sealing and ducting; and fuel systems including fuel pumps, sensors, valves, adapters and regulators. The principal markets for the Aerospace segment are manufacturers of commercial and military aircraft and related after-market customers. These manufacturers and other customers operate globally. Products are sold and serviced through a variety of channels.

Vehicle

The Vehicle segment is a leader in the design, manufacture, marketing, and supply of: drivetrain, powertrain systems and critical components that reduce emissions and improve fuel economy, stability, performance, and safety of cars, light trucks and commercial vehicles. Products include transmissions, clutches, hybrid power systems, superchargers, engine valves and valve actuation systems, cylinder heads, locking and limited slip differentials, transmission controls, and fuel vapor components for the global vehicle industry. The principal markets for the Vehicle segment are original equipment manufacturers and aftermarket customers of heavy-, medium-, and light-duty trucks, SUVs, CUVs, passenger cars and agricultural equipment.

eMobility

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 principle markets for the eMobility segment are original equipment manufacturers and aftermarket customers of passenger cars, commercial vehicles, and construction, agriculture, and mining equipment.

68

Other Information

No single customer represented greater than 10% of net sales in 2019, 2018 or 2017, respectively.

The accounting policies of the business segments are generally the same as the policies described in Note 1, except that operating profit only reflects the service cost component and the cost of any special termination benefits related to pensions and other postretirement benefits. Intersegment sales and transfers are accounted for at the same prices as if the sales and transfers were made to third parties. These intersegment sales are eliminated in consolidation. Operating profit includes the operating profit from intersegment sales.

For purposes of business segment performance measurement, the Company does not allocate items that are of a non-operating nature or are of a corporate or functional governance nature. Corporate expenses consist of costs associated with acquisitions, divestitures, and gains and losses on the sale of certain businesses, and corporate office expenses including compensation, benefits, occupancy, depreciation, and other administrative costs. Identifiable assets of the business segments exclude goodwill, other intangible assets, and general corporate assets, which principally consist of certain cash, short-term investments, deferred income taxes, certain accounts receivable, certain property, plant and equipment, and certain other assets.

Business Segment Information

	2019			2018			2017
Net sales
Electrical Products	$	7,148		$	7,124		$	6,917
Electrical Systems and Services	6,287			6,024			5,666
Hydraulics	2,552			2,756			2,468
Aerospace	2,044			1,896			1,744
Vehicle	3,038			3,489			3,326
eMobility	321			320			283
Total net sales	$	21,390		$	21,609		$	20,404
Segment operating profit
Electrical Products	$	1,390		$	1,311		$	1,233
Electrical Systems and Services	1,027			896			770
Hydraulics	286			370			288
Aerospace	495			398			332
Vehicle	460			611			541
eMobility	17			44			50
Total segment operating profit	3,675			3,630			3,214
Corporate
Amortization of intangible assets	(367		)	(382		)	(388		)
Interest expense - net	(236		)	(271		)	(246		)
Pension and other postretirement benefits expense	(12		)	(1		)	(45		)
Gain on sale of business	—			—			1,077
Arbitration decision expense	—			(275		)	—
Other corporate expense - net	(469		)	(277		)	(244		)
Income before income taxes	2,591			2,424			3,368
Income tax expense	378			278			382
Net income	2,213			2,146			2,986
Less net income for noncontrolling interests	(2		)	(1		)	(1		)
Net income attributable to Eaton ordinary shareholders	$	2,211		$	2,145		$	2,985

69

	2019		2018		2017
Identifiable assets
Electrical Products	$	2,201	$	2,451	$	2,446
Electrical Systems and Services	2,532		2,243		2,141
Hydraulics	1,439		1,473		1,345
Aerospace	1,362		935		938
Vehicle	2,145		2,289		2,367
eMobility	141		139		136
Total identifiable assets	9,820		9,530		9,373
Goodwill	13,456		13,328		13,568
Other intangible assets	4,638		4,846		5,265
Corporate	3,514		3,388		4,417
Assets held for sale	1,377		—		—
Total assets	$	32,805	$	31,092	$	32,623
Capital expenditures for property, plant and equipment
Electrical Products	$	162	$	135	$	130
Electrical Systems and Services	108		101		83
Hydraulics	90		106		96
Aerospace	47		38		37
Vehicle	127		143		141
eMobility	8		4		4
Total	542		527		491
Corporate	45		38		29
Total expenditures for property, plant and equipment	$	587	$	565	$	520
Depreciation of property, plant and equipment
Electrical Products	$	126	$	136	$	138
Electrical Systems and Services	87		85		83
Hydraulics	66		64		61
Aerospace	27		26		26
Vehicle	102		104		109
eMobility	5		5		5
Total	413		420		422
Corporate	52		53		54
Total depreciation of property, plant and equipment	$	465	$	473	$	476

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Geographic Region Information

Net sales are measured based on the geographic destination of sales. Long-lived assets consist of property, plant and equipment - net.

	2019		2018		2017
Net sales
United States	$	12,336	$	12,034	$	11,222
Canada	941		931		942
Latin America	1,312		1,442		1,485
Europe	4,311		4,553		4,394
Asia Pacific	2,490		2,649		2,361
Total	$	21,390	$	21,609	$	20,404
Long-lived assets
United States	$	1,821	$	1,898	$	1,872
Canada	24		20		20
Latin America	316		286		290
Europe	797		723		769
Asia Pacific	538		540		551
Total	$	3,496	$	3,467	$	3,502

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Note 16. 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 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 2019, 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 YEAR ENDED DECEMBER 31, 2019
	Eaton Corporation plc			Eaton Corporation			Guarantors			Other subsidiaries			Consolidating adjustments			Total
Net sales	$	—		$	7,322		$	6,995		$	12,101		$	(5,028	)	$	21,390
Cost of products sold	—			5,646			5,073			8,651			(5,032		)	14,338
Selling and administrative expense	11			1,480			780			1,312			—			3,583
Research and development expense	—			141			140			325			—			606
Interest expense (income) - net	—			248			19			(29		)	(2		)	236
Other expense (income) - net	(12		)	16			(8		)	40			—			36
Equity in loss (earnings) of    subsidiaries, net of tax	(2,423		)	(593		)	(2,492		)	(2,563		)	8,071			—
Intercompany expense (income) - net	213			1			520			(734		)	—			—
Income (loss) before income taxes	2,211			383			2,963			5,099			(8,065		)	2,591
Income tax expense (benefit)	—			3			135			239			1			378
Net income (loss)	2,211			380			2,828			4,860			(8,066		)	2,213
Less net loss (income) for    noncontrolling interests	—			—			—			(2		)	—			(2		)
Net income (loss) attributable to    Eaton ordinary shareholders	$	2,211		$	380		$	2,828		$	4,858		$	(8,066	)	$	2,211
Other comprehensive income (loss)	(145		)	(6		)	(109		)	(312		)	427			(145		)
Total comprehensive income (loss) attributable to Eaton    ordinary shareholders	$	2,066		$	374		$	2,719		$	4,546		$	(7,639	)	$	2,066

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CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME YEAR ENDED DECEMBER 31, 2018
	Eaton Corporation plc			Eaton Corporation			Guarantors			Other subsidiaries			Consolidating adjustments			Total
Net sales	$	—		$	7,395		$	6,875		$	12,649		$	(5,310	)	$	21,609
Cost of products sold	—			5,805			5,012			9,011			(5,317		)	14,511
Selling and administrative expense	10			1,451			756			1,331			—			3,548
Research and development expense	—			151			146			287			—			584
Interest expense (income) - net	—			273			15			(18		)	1			271
Arbitration decision expense	—			—			275			—			—			275
Other expense (income) - net	(29		)	55			22			(52		)	—			(4		)
Equity in loss (earnings) of    subsidiaries, net of tax	(2,302		)	(716		)	(2,867		)	(2,338		)	8,223			—
Intercompany expense (income) - net	176			133			1,022			(1,331		)	—			—
Income (loss) before income taxes	2,145			243			2,494			5,759			(8,217		)	2,424
Income tax expense (benefit)	—			1			28			248			1			278
Net income (loss)	2,145			242			2,466			5,511			(8,218		)	2,146
Less net loss (income) for    noncontrolling interests	—			—			—			(1		)	—			(1		)
Net income (loss) attributable to    Eaton ordinary shareholders	$	2,145		$	242		$	2,466		$	5,510		$	(8,218	)	$	2,145
Other comprehensive income (loss)	(741		)	(162		)	(765		)	(1,565		)	2,492			(741		)
Total comprehensive income (loss) attributable to Eaton    ordinary shareholders	$	1,404		$	80		$	1,701		$	3,945		$	(5,726	)	$	1,404

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CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME YEAR ENDED DECEMBER 31, 2017
	Eaton Corporation plc			Eaton Corporation			Guarantors			Other subsidiaries			Consolidating adjustments			Total
Net sales	$	—		$	6,900		$	6,563		$	12,358		$	(5,417	)	$	20,404
Cost of products sold	—			5,434			4,840			8,895			(5,413		)	13,756
Selling and administrative expense	11			1,387			768			1,360			—			3,526
Research and development expense	—			183			176			225			—			584
Interest expense (income) - net	—			244			20			(20		)	2			246
Gain on sale of business	—			561			—			516			—			1,077
Other expense (income) - net	79			48			(76		)	(50		)	—			1
Equity in loss (earnings) of    subsidiaries, net of tax	(3,644		)	(1,644		)	(5,063		)	(3,832		)	14,183			—
Intercompany expense (income) - net	569			(309		)	794			(1,054		)	—			—
Income (loss) before income taxes	2,985			2,118			5,104			7,350			(14,189		)	3,368
Income tax expense (benefit)	—			337			(52		)	99			(2		)	382
Net income (loss)	2,985			1,781			5,156			7,251			(14,187		)	2,986
Less net loss (income) for    noncontrolling interests	—			—			—			(3		)	2			(1		)
Net income (loss) attributable to    Eaton ordinary shareholders	$	2,985		$	1,781		$	5,156		$	7,248		$	(14,185	)	$	2,985
Other comprehensive income (loss)	1,044			104			1,021			2,252			(3,377		)	1,044
Total comprehensive income (loss) attributable to Eaton    ordinary shareholders	$	4,029		$	1,885		$	6,177		$	9,500		$	(17,562	)	$	4,029

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CONDENSED CONSOLIDATING BALANCE SHEETS DECEMBER 31, 2019
	Eaton Corporation plc		Eaton Corporation		Guarantors		Other subsidiaries		Consolidating adjustments			Total
Assets
Current assets
Cash	$	—	$	27	$	—	$	343	$	—		$	370
Short-term investments	—		—		—		221		—			221
Accounts receivable - net	—		460		982		1,995		—			3,437
Intercompany accounts receivable	9		937		1,848		1,683		(4,477		)	—
Inventory	—		596		672		1,609		(72		)	2,805
Assets held for sale	—		—		1,211		166		—			1,377
Prepaid expenses and other    current assets	—		106		28		371		13			518
Total current assets	9		2,126		4,741		6,388		(4,536		)	8,728
Property, plant and equipment - net	—		854		563		2,079		—			3,496
Other noncurrent assets
Goodwill	—		1,742		5,839		5,875		—			13,456
Other intangible assets	—		302		2,406		1,930		—			4,638
Operating lease assets	—		173		31		232		—			436
Deferred income taxes	—		250		74		279		(231		)	372
Investment in subsidiaries	17,195		10,610		58,610		23,019		(109,434		)	—
Intercompany loans receivable	—		2,643		2,983		38,671		(44,297		)	—
Other assets	—		817		129		733		—			1,679
Total assets	$	17,204	$	19,517	$	75,376	$	79,206	$	(158,498	)	$	32,805
Liabilities and shareholders’    equity
Current liabilities
Short-term debt	$	—	$	255	$	—	$	—	$	—		$	255
Current portion of long-term debt	—		4		242		2		—			248
Accounts payable	—		529		340		1,245		—			2,114
Intercompany accounts payable	25		953		2,275		1,224		(4,477		)	—
Accrued compensation	—		113		58		278		—			449
Liabilities held for sale	—		—		232		93		—			325
Other current liabilities	1		531		400		809		—			1,741
Total current liabilities	26		2,385		3,547		3,651		(4,477		)	5,132
Noncurrent liabilities
Long-term debt	—		5,886		1,921		12		—			7,819
Pension liabilities	—		420		122		920		—			1,462
Other postretirement benefits    liabilities	—		172		80		76		—			328
Operating lease liabilities	—		128		21		182		—			331
Deferred income taxes	—		—		432		195		(231		)	396
Intercompany loans payable	1,096		5,120		36,000		2,081		(44,297		)	—
Other noncurrent liabilities	—		570		272		362		—			1,204
Total noncurrent liabilities	1,096		12,296		38,848		3,828		(44,528		)	11,540
Shareholders’ equity
Eaton shareholders’ equity	16,082		4,836		32,981		71,676		(109,493		)	16,082
Noncontrolling interests	—		—		—		51		—			51
Total equity	16,082		4,836		32,981		71,727		(109,493		)	16,133
Total liabilities and equity	$	17,204	$	19,517	$	75,376	$	79,206	$	(158,498	)	$	32,805

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CONDENSED CONSOLIDATING BALANCE SHEETS DECEMBER 31, 2018
	Eaton Corporation plc		Eaton Corporation		Guarantors		Other subsidiaries		Consolidating adjustments			Total
Assets
Current assets
Cash	$	1	$	21	$	1	$	260	$	—		$	283
Short-term investments	—		—		—		157		—			157
Accounts receivable - net	—		501		1,381		1,976		—			3,858
Intercompany accounts receivable	—		2,457		1,877		2,159		(6,493		)	—
Inventory	—		592		714		1,555		(76		)	2,785
Prepaid expenses and other    current assets	—		109		29		355		14			507
Total current assets	1		3,680		4,002		6,462		(6,555		)	7,590
Property, plant and equipment - net	—		858		663		1,946		—			3,467
Other noncurrent assets
Goodwill	—		1,742		6,293		5,293		—			13,328
Other intangible assets	—		322		2,860		1,664		—			4,846
Deferred income taxes	—		252		134		287		(380		)	293
Investment in subsidiaries	16,476		13,101		68,196		32,625		(130,398		)	—
Intercompany loans receivable	1,508		2,208		8,406		39,757		(51,879		)	—
Other assets	—		758		115		695		—			1,568
Total assets	$	17,985	$	22,921	$	90,669	$	88,729	$	(189,212	)	$	31,092
Liabilities and shareholders’    equity
Current liabilities
Short-term debt	$	—	$	388	$	—	$	26	$	—		$	414
Current portion of long-term debt	—		338		—		1		—			339
Accounts payable	—		515		397		1,218		—			2,130
Intercompany accounts payable	32		1,718		2,864		1,879		(6,493		)	—
Accrued compensation	—		139		67		251		—			457
Other current liabilities	30		536		386		864		(2		)	1,814
Total current liabilities	62		3,634		3,714		4,239		(6,495		)	5,154
Noncurrent liabilities
Long-term debt	—		5,814		945		7		2			6,768
Pension liabilities	—		391		122		791		—			1,304
Other postretirement benefits    liabilities	—		168		81		72		—			321
Deferred income taxes	—		1		553		175		(380		)	349
Intercompany loans payable	1,816		7,681		39,552		2,830		(51,879		)	—
Other noncurrent liabilities	—		391		290		373		—			1,054
Total noncurrent liabilities	1,816		14,446		41,543		4,248		(52,257		)	9,796
Shareholders’ equity
Eaton shareholders’ equity	16,107		4,841		45,412		80,207		(130,460		)	16,107
Noncontrolling interests	—		—		—		35		—			35
Total equity	16,107		4,841		45,412		80,242		(130,460		)	16,142
Total liabilities and equity	$	17,985	$	22,921	$	90,669	$	88,729	$	(189,212	)	$	31,092

76

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS DECEMBER 31, 2019
	Eaton Corporation plc			Eaton Corporation			Guarantors			Other subsidiaries			Consolidating adjustments			Total
Net cash provided by (used in)    operating activities	$	(78	)	$	1,316		$	652		$	1,561		$	—		$	3,451
Investing activities
Capital expenditures for property,    plant and equipment	—			(101		)	(114		)	(372		)	—			(587		)
Cash paid for acquisitions of    businesses, net of cash acquired	—			(152		)	(30		)	(998		)	—			(1,180		)
Payments for sale of a business	—			—			—			(36		)	—			(36		)
Sales (purchases) of short-term investments - net	—			—			—			(70		)	—			(70		)
Loans to affiliates	—			(470		)	(811		)	(8,440		)	9,721			—
Repayments of loans from affiliates	—			841			—			6,830			(7,671		)	—
Proceeds from (payments for) settlement of currency exchange contracts not designated as hedges - net	—			3			—			51			—			54
Other - net	—			(32		)	29			(44		)	—			(47		)
Net cash provided by (used in)     investing activities	—			89			(926		)	(3,079		)	2,050			(1,866		)
Financing activities
Proceeds from borrowings	—			—			1,232			—			—			1,232
Payments on borrowings	—			(474		)	—			(33		)	—			(507		)
Proceeds from borrowings from    affiliates	2,426			5,341			673			1,281			(9,721		)	—
Payments on borrowings from    affiliates	(185		)	(6,286		)	(459		)	(741		)	7,671			—
Other intercompany financing    activities	—			51			(1,162		)	1,111			—			—
Cash dividends paid	(1,201		)	—			—			—			—			(1,201		)
Exercise of employee stock options	66			—			—			—			—			66
Repurchase of shares	(1,029		)	—			—			—			—			(1,029		)
Employee taxes paid from shares    withheld	—			(31		)	(5		)	(10		)	—			(46		)
Other - net	—			—			(6		)	(3		)	—			(9		)
Net cash provided by (used in)    financing activities	77			(1,399		)	273			1,605			(2,050		)	(1,494		)
Effect of currency on cash	—			—			—			(4		)	—			(4		)
Total increase (decrease) in cash	(1		)	6			(1		)	83			—			87
Cash at the beginning of the period	1			21			1			260			—			283
Cash at the end of the period	$	—		$	27		$	—		$	343		$	—		$	370

77

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS DECEMBER 31, 2018
	Eaton Corporation plc			Eaton Corporation			Guarantors			Other subsidiaries			Consolidating adjustments			Total
Net cash provided by (used in)    operating activities	$	(26	)	$	(84	)	$	220		$	2,643		$	(95	)	$	2,658
Investing activities
Capital expenditures for property,    plant and equipment	—			(98		)	(91		)	(376		)	—			(565		)
Sales (purchases) of short-term investments - net	—			—			—			355			—			355
Investments in affiliates	(4		)	(36		)	—			—			40			—
Loans to affiliates	—			(100		)	(84		)	(6,442		)	6,626			—
Repayments of loans from affiliates	—			647			1,044			4,455			(6,146		)	—
Proceeds from (payments for) settlement of currency exchange contracts not designated as hedges - net	—			11			—			(121		)	—			(110		)
Other - net	—			(78		)	23			(23		)	—			(78		)
Net cash provided by (used in)     investing activities	(4		)	346			892			(2,152		)	520			(398		)
Financing activities
Proceeds from borrowings	—			388			—			22			—			410
Payments on borrowings	—			(538		)	(35		)	(1		)	—			(574		)
Proceeds from borrowings from    affiliates	3,756			2,452			318			100			(6,626		)	—
Payments on borrowings from    affiliates	(1,334		)	(3,178		)	(710		)	(924		)	6,146			—
Capital contributions from affiliates	—			—			—			40			(40		)	—
Other intercompany financing    activities	—			463			(692		)	229			—			—
Cash dividends paid	(1,149		)	—			—			—			—			(1,149		)
Cash dividends paid to affiliates	—			—			—			(95		)	95			—
Exercise of employee stock options	29			—			—			—			—			29
Repurchase of shares	(1,271		)	—			—			—			—			(1,271		)
Employee taxes paid from shares    withheld	—			(16		)	(5		)	(3		)	—			(24		)
Other - net	—			(1		)	—			(1		)	—			(2		)
Net cash provided by (used in)    financing activities	31			(430		)	(1,124		)	(633		)	(425		)	(2,581		)
Effect of currency on cash	—			—			—			43			—			43
Total increase (decrease) in cash	1			(168		)	(12		)	(99		)	—			(278		)
Cash at the beginning of the period	—			189			13			359			—			561
Cash at the end of the period	$	1		$	21		$	1		$	260		$	—		$	283

78

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS DECEMBER 31, 2017
	Eaton Corporation plc			Eaton Corporation			Guarantors			Other subsidiaries			Consolidating adjustments			Total
Net cash provided by (used in)    operating activities	$	258		$	(470	)	$	15		$	4,472		$	(1,609	)	$	2,666
Investing activities
Capital expenditures for property,    plant and equipment	—			(92		)	(110		)	(318		)	—			(520		)
Proceeds from the sales    of businesses	—			338			—			269			—			607
Cash received from sales (paid for    acquisitions) of affiliates	—			—			(92		)	92			—			—
Sales (purchases) of short-term    investments - net	—			—			—			(298		)	—			(298		)
Investments in affiliates	(190		)	(108		)	—			(90		)	388			—
Return of investments in affiliates	—			—			90			—			(90		)	—
Loans to affiliates	—			(443		)	(415		)	(6,309		)	7,167			—
Repayments of loans from affiliates	—			303			385			3,478			(4,166		)	—
Other - net	—			(45		)	10			29			—			(6		)
Net cash provided by (used in)    investing activities	(190		)	(47		)	(132		)	(3,147		)	3,299			(217		)
Financing activities
Proceeds from borrowings	—			1,000			—			—			—			1,000
Payments on borrowings	—			(1,250		)	(297		)	(7		)	—			(1,554		)
Proceeds from borrowings from    affiliates	2,605			3,129			991			442			(7,167		)	—
Payments on borrowings from    affiliates	(822		)	(2,904		)	(353		)	(87		)	4,166			—
Capital contribution from affiliates	—			—			90			298			(388		)	—
Return of capital to affiliates	—			—			—			(90		)	90			—
Other intercompany financing    activities	—			652			500			(1,152		)	—			—
Cash dividends paid	(1,068		)	—			—			—			—			(1,068		)
Cash dividends paid to affiliates	—			—			(800		)	(809		)	1,609			—
Exercise of employee stock options	66			—			—			—			—			66
Repurchase of shares	(850		)	—			—			—			—			(850		)
Employee taxes paid from shares    withheld	—			(15		)	(4		)	(3		)	—			(22		)
Other - net	—			(8		)	(1		)	(5		)	—			(14		)
Net cash provided by (used in)    financing activities	(69		)	604			126			(1,413		)	(1,690		)	(2,442		)
Effect of currency on cash	—			—			—			11			—			11
Total increase (decrease) in cash	(1		)	87			9			(77		)	—			18
Cash at the beginning of the period	1			102			4			436			—			543
Cash at the end of the period	$	—		$	189		$	13		$	359		$	—		$	561

79

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 2019 net sales of $21.4 billion. Eaton’s mission is to improve the quality of life and the environment through the use of power management technologies and services. We provide sustainable solutions that help our customers effectively manage electrical, hydraulic and mechanical power – more safely, more efficiently and more reliably. Eaton has approximately 101,000 employees in 60 countries and sells products to customers in more than 175 countries.

Summary of Results of Operations

During 2019, the Company’s results of operations were impacted by negative currency translation and weaker than expected growth in the Company’s end markets, particularly in the second half of 2019. Despite the declining market conditions and unfavorable impact of currency translation, the Company generated solid operating margins and Net income per ordinary share.

On April 15, 2019, Eaton completed the acquisition of an 82.275% controlling interest in Ulusoy Elektrik Imalat Taahhut ve Ticaret A.S. (Ulusoy Elektrik), a leading manufacturer of electrical switchgear based in Ankara, Turkey, with a primary focus on medium voltage solutions for industrial and utility customers. Its sales for the 12 months ended September 30, 2018 were $126. The purchase price for the shares was $214 on a cash and debt free basis. As required by the Turkish capital markets legislation, Eaton filed an application to execute a mandatory tender offer for the remaining shares shortly after the transaction closed. During the tender offer, Eaton purchased additional shares for $33 through July 2019 to increase its ownership interest to 93.7%. Ulusoy Elektrik is reported within the Electrical Systems and Services business segment.

On July 19, 2019, Eaton acquired Innovative Switchgear Solutions, Inc. (ISG), a specialty manufacturer of medium-voltage electrical equipment serving the North American utility, commercial and industrial markets. Its 2018 sales were approximately $18. ISG is reported within the Electrical Systems and Services business segment.

On December 20, 2019, Eaton acquired the Souriau-Sunbank Connection Technologies (Souriau-Sunbank) business of TransDigm Group Inc. for a cash purchase price of $903, net of cash received. Headquartered in Versailles, France, Souriau-Sunbank is a global leader in highly engineered electrical interconnect solutions for harsh environments in the aerospace, defense, industrial, energy, and transport markets. Its sales for the 12 months ended June 30, 2019 were $363. Souriau-Sunbank is reported within the Aerospace business segment.

On December 31, 2019, Eaton sold its Automotive Fluid Conveyance Business. The transaction resulted in a pre-tax loss of $66 which was recorded in Other expense (income) - net. This business was reported within the Vehicle business segment.

On October 15, 2019, Eaton entered into an agreement to sell its Lighting business to Signify N.V. for a cash purchase price of $1.4 billion. The Lighting business, which had sales of $1.6 billion in 2019 as part of the Electrical Products business segment, serves customers in commercial, industrial, residential and municipal markets. During the fourth quarter of 2019, the Company determined the Lighting business met the criteria to be classified as held for sale. Therefore, its assets and liabilities have been presented as held for sale in the Consolidated Balance Sheet as of December 31, 2019. Assets and liabilities classified as held for sale are measured at the lower of carrying value or fair value less costs to sell. There was no write-down as fair value of the Lighting business assets less costs to sell exceeded carrying value. Depreciation and amortization expense is not recorded for the period in which Other long-lived assets are classified as held for sale. The transaction is subject to customary closing conditions and regulatory approvals and is expected to close in the first quarter of 2020.

On January 21, 2020, Eaton entered into an agreement to sell its Hydraulics business to Danfoss A/S, a Danish industrial company, for $3.3 billion in cash. Eaton’s Hydraulics business, which accounted for 86% of Eaton’s Hydraulics segment revenue in 2019, is a global leader in hydraulics components, systems, and services for industrial and mobile equipment. The business had sales of $2.2 billion in 2019. Eaton is retaining the Filtration and Golf Grip businesses currently reported in the company’s Hydraulics segment. Eaton expects the Hydraulics business to be classified as held for sale during the first quarter of 2020. The Hydraulics business did not meet the criteria to be classified as discontinued operations as the sale does not represent a strategic shift that will have a major effect on the Company's operations. The transaction is subject to customary closing conditions and regulatory approvals and is expected to close by the end of 2020.

On February 25, 2020, Eaton completed the acquisition of Power Distribution, Inc. a leading supplier of mission critical power distribution, static switching, and power monitoring equipment and services for data centers and industrial and commercial customers. The company is headquartered in Richmond, Virginia, and had 2019 sales of $125. Power Distribution, Inc. will be reported within the Electrical Systems and Services business segment.

80

During 2018, the Company's results of operations delivered strong sales growth as major global end markets expanded.

As discussed in Note 8, certain Eaton subsidiaries acquired in the 2012 acquisition of Cooper Industries have been ordered to pay $293 by an arbitration panel. The panel’s award, issued on August 23, 2018, relate to claims brought by Pepsi-Cola Metropolitan Bottling Company, Inc. (“Pepsi”) in 2011. A Texas state court confirmed the arbitration award at the confirmation hearing, which was held on October 12, 2018. On November 2, 2018, the Company appealed. On November 28, 2018, the Company paid the full judgment plus accrued post-judgment interest to Pneumo Abex and preserved its rights, including to pursue the appeal, which is pending. The impact of the arbitration award was an after-tax expense of $206 in the third quarter of 2018, reducing earnings per share by $0.48.

During 2017, the Company's results of operations returned to solid growth as global end markets expanded, particularly in the second half of 2017. During the year, the Company completed its multi-year restructuring program, reducing its cost structure and expanding operating margins.

On July 31, 2017, Eaton sold a 50% interest in its heavy-duty and medium-duty commercial vehicle automated transmission business for $600 in cash to Cummins, Inc. The Company recognized a pre-tax gain of $1,077, of which $533 related to the pre-tax gain from the $600 proceeds from the sale and $544 related to the Company’s remaining 50% investment in the joint venture being remeasured to fair value. The after-tax gain was $843. Eaton accounts for its investment on the equity method of accounting.

The tax rate for 2017 includes a tax benefit of $62 related to the United States Tax Cuts and Jobs Act (“TCJA”), which was signed into law on December 22, 2017. The tax benefit of $62 related to the TCJA is comprised of a tax benefit of $79 for adjusting deferred tax assets and liabilities, offset by a tax expense of $17 for the taxation of unremitted earnings of non-U.S. subsidiaries owned directly or indirectly by U.S. subsidiaries of Eaton.

Additional information related to acquisitions and divestitures of businesses, and the arbitration decision expense, is presented in Note 2 and Note 8, respectively, of the Notes to the Consolidated Financial Statements.

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:

	2019		2018		2017
Net sales	$	21,390	$	21,609	$	20,404
Net income attributable to Eaton ordinary shareholders	2,211		2,145		2,985
Net income per share attributable to Eaton ordinary shareholders - diluted	$	5.25	$	4.91	$	6.68

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 and divestiture 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 and divestiture charges is reconciled in the discussion of the operating results of each business segment, and excludes acquisition integration and divestiture expense related primarily to the planned divestiture of the Lighting business and the acquisitions of Ulusoy Elektrik, ISG and Souriau-Sunbank discussed in Note 2. 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.

81

Acquisition Integration and Divestiture Charges

Eaton incurs integration charges and transaction costs to acquire businesses, and transaction and other charges to divest and exit businesses. A summary of these charges follows:

	2019		2018		2017
Electrical Products	$	21	$	—	$	4
Electrical Systems and Services	14		—		—
Aerospace	1		—		—
Total business segments	36		—		4
Corporate	162		—		—
Total acquisition integration, divestiture charges and transaction costs before income taxes	198		—		4
Income taxes	24		—		2
Total after income taxes	$	174	$	—	$	2
Per ordinary share - diluted	$	0.42	$	—	$	—

Business segment charges in 2019 related to the planned divestiture of the Lighting business and the acquisitions of Ulusoy Elektrik, ISG and Souriau-Sunbank, and were included in Cost of products sold, Selling and administrative expense or Research and development expense. 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 in Note 15, the charges reduced Operating profit of the related business segment.

Corporate charges in 2019 are primarily related to the planned divestiture of the Lighting business, the loss on the sale of the Automotive Fluid Conveyance business, and other charges to exit businesses, and were included in Selling and administrative expense and Other (income) expense-net. In Business Segment Information in Note 15, the charges were included in Other corporate expense - net.

Consolidated Financial Results

	2019			Change from 2018		2018			Change from 2017		2017
Net sales	$	21,390		(1	)%	$	21,609		6	%	$	20,404
Gross profit	7,052			(1	)%	7,098			7	%	6,648
Percent of net sales	33.0		%			32.8		%			32.6		%
Income before income taxes	2,591			7	%	2,424			(28	)%	3,368
Net income	2,213			3	%	2,146			(28	)%	2,986
Less net income for noncontrolling interests	(2		)			(1		)			(1		)
Net income attributable to Eaton ordinary shareholders	2,211			3	%	2,145			(28	)%	2,985
Excluding acquisition integration and divestiture charges,    after-tax	174					—					2
Adjusted earnings	$	2,385		11	%	$	2,145		(28	)%	$	2,987
Net income per share attributable to Eaton ordinary shareholders - diluted	$	5.25		7	%	$	4.91		(26	)%	$	6.68
Excluding per share impact of acquisition integration and divestiture charges, after-tax	0.42					—					—
Adjusted earnings per ordinary share	$	5.67		15	%	$	4.91		(26	)%	$	6.68

Net Sales

Net sales in 2019 decreased by 1% compared to 2018 due to a decrease of 1% from the impact of negative currency translation. Net sales in 2018 increased by 6% compared to 2017 due to an increase of 6% in organic sales. The increase in organic sales in 2018 was primarily due to higher sales volumes in all business segments.

82

Gross Profit

Gross profit margin increased from 32.8% in 2018 to 33.0% in 2019. The increase in gross profit margin in 2019 was primarily due to higher sales volumes and other operating improvements in Electrical Products and Electrical Systems and Services business segments, and higher sales volumes and favorable product mix in the Aerospace business segment, partially offset by lower sales volumes in the Hydraulics and Vehicle business segments and the charge for the expected warranty costs in the Vehicle business segment to correct the performance of a product which incorporated a defective part from a supplier. Gross profit increased from 32.6% in 2017 to 32.8% in 2018. The increase in gross profit margin in 2018 was primarily due to higher sales volumes, savings from restructuring actions, and lower restructuring charges, partially offset by commodity inflation and increased freight costs.

Income Taxes

During 2019, income tax expense of $378 was recognized (an effective tax rate of 14.6%) compared to income tax expense of $278 in 2018 (an effective tax rate of 11.5%) and income tax expense of $382 in 2017 (an effective tax rate of 11.3%). The 2018 effective tax rate includes a tax benefit of $69 on the arbitration decision expense discussed in Note 8. The 2017 effective tax rate includes tax expense of $234 on the gain related to the sale of business discussed in Note 2 and a tax benefit of $62 related to the U.S. Tax Cuts and Jobs Act (TCJA). Excluding the impacts of the 2018 arbitration decision, the 2017 sale of business, and the 2017 TCJA, the effective tax rate was 12.8% in 2018 and 9.2% in 2017. The increase in the tax rate from 12.8% in 2018 to 14.6% in 2019 was primarily due to greater levels of income in higher tax jurisdictions. The increase from 9.2% in 2017 compared to 12.8% in 2018 was due to greater levels of income in higher tax jurisdictions and an increase in tax contingencies offset by net decreases of related valuation allowances.

Net Income

Net income attributable to Eaton ordinary shareholders of $2,211 in 2019 increased 3% compared to $2,145 in 2018. Net income in 2018 included after-tax expense of $206 from the arbitration decision discussed in Note 8. Excluding the arbitration decision, the decrease in 2019 net income was primarily due to higher acquisition integration and divestiture charges and a higher effective income tax rate. Net income attributable to Eaton ordinary shareholders of $2,145 in 2018 decreased 28% compared to $2,985 in 2017. Net income in 2017 included $843 from the after-tax gain on the sale of the business discussed in Note 2 and $62 of income from the new U.S. tax bill discussed in Note 9. Excluding these items and the 2018 arbitration decision, the increase in 2018 net income was primarily due to higher sales volumes, savings from restructuring actions, and lower restructuring charges, partially offset by commodity inflation and increased freight costs.

Net income per ordinary share increased to $5.25 in 2019 compared to $4.91 in 2018. Net income per ordinary share in 2018 included an unfavorable $0.48 from the arbitration decision expense discussed in Note 8. Excluding the arbitration decision, the decrease in net income per ordinary share was primarily due to lower Net income attributable to Eaton ordinary shareholders, partially offset by the Company's share repurchases over the past year. Net income per ordinary share decreased to $4.91 in 2018 compared to $6.68 in 2017. Net income per ordinary share in 2017 included $1.89 from the gain on the sale of business discussed in Note 2 and $0.14 income from the 2017 U.S. Tax Cuts and Jobs Act discussed in Note 9. Excluding these items and the 2018 arbitration decision, Net income per ordinary share increased in 2018 due to higher Net income attributable to Eaton ordinary shareholders and the Company's share repurchases over the past year.

Adjusted Earnings

Adjusted earnings of $2,385 in 2019 increased 11% compared to Adjusted earnings of $2,145 in 2018. The increase in Adjusted earnings in 2019 was primarily due to higher Net income attributable to Eaton ordinary shareholders excluding higher acquisition integration and divestiture charges. There were no acquisition integration charges in 2018 and $2 in 2017 after-tax, which resulted in the same percent change for both Net income attributable to Eaton ordinary shareholders and Adjusted earnings from 2017 to 2018.

Adjusted earnings per ordinary share increased to $5.67 in 2019 compared to $4.91 in 2018. The increase in Adjusted earnings per ordinary share in 2019 was due to higher Adjusted earnings and the impact of the Company's share repurchases over the past year. There was no impact of excluding the acquisition integration and divestiture charges per share from Net income attributable to Eaton ordinary shareholders to arrive at Adjusted earnings per ordinary share for 2018 and 2017.

Business Segment Results of Operations

The following is a discussion of Net sales, operating profit and operating profit margin by business segment, which includes a discussion of operating profit and operating profit margin before acquisition integration and divestiture charges. For additional information related to acquisition integration and divestiture charges, see Non-GAAP Financial Measures section.

83

Electrical Products

	2019			Change from 2018		2018			Change from 2017		2017
Net sales	$	7,148		—	%	$	7,124		3	%	$	6,917
Operating profit	$	1,390		6	%	$	1,311		6	%	$	1,233
Operating margin	19.4		%			18.4		%			17.8		%
Acquisition integration and divestiture charges	$	21				$	—				$	4
Before acquisition integration and divestiture charges
Operating profit	$	1,411		8	%	$	1,311		6	%	$	1,237
Operating margin	19.7		%			18.4		%			17.9		%

Net sales were broadly flat in 2019 compared to 2018 due to an increase of 2% in organic sales, offset by a 2% decrease from the impact of negative currency translation. Organic sales grew in 2019 in North America, primarily driven by growth in products going into residential and commercial applications. Net sales increased 3% in 2018 compared to 2017 due to an increase of 3% in organic sales. Organic sales grew in 2018 in North America and Europe, primarily driven by growth in commercial, residential and industrial applications, partially offset by weakness in North American lighting sales.

Operating margin increased from 18.4% in 2018 to 19.4% in 2019. The increase in operating margin in 2019 was primarily due to higher sales volumes and other operating improvements. Operating margin increased from 17.8% in 2017 to 18.4% in 2018. The increase in operating margin in 2018 was primarily due to higher sales volumes, lower restructuring costs, and savings from restructuring actions, partially offset by commodity inflation and increased freight costs.

Operating margin before acquisition integration and divestiture charges increased from 18.4% in 2018 to 19.7% in 2019. The increase in operating margin before acquisition integration and divestiture charges in 2019 was primarily due to an increase in operating margin. Operating margin before acquisition integration and divestiture charges increased from 17.9% in 2017 to 18.4% in 2018. The increase in operating margin before acquisition integration and divestiture charges in 2018 was primarily due to an increase in operating margin, partially offset by lower acquisition integration and divestiture charges.

Electrical Systems and Services

	2019			Change from 2018		2018			Change from 2017		2017
Net sales	$	6,287		4	%	$	6,024		6	%	$	5,666
Operating profit	$	1,027		15	%	$	896		16	%	$	770
Operating margin	16.3		%			14.9		%			13.6		%
Acquisition integration and divestiture charges	$	14				$	—				$	—
Before acquisition integration and divestiture charges
Operating profit	$	1,041		16	%	$	896		16	%	$	770
Operating margin	16.6		%			14.9		%			13.6		%

Net sales increased 4% in 2019 compared to 2018 due to an increase of 4% in organic sales and an increase of 1% from the acquisitions of businesses, partially offset by a decrease of 1% from the impact of negative currency translation. The organic sales increase in 2019 was primarily due to strength in commercial construction, industrial projects, utilities and data centers. Net sales increased 6% in 2018 compared to 2017 due to an increase of 7% in organic sales, partially offset by a decrease of 1% from the sale of a stake in a joint venture in the fourth quarter of 2017. The organic sales increase in 2018 was primarily due to strength in large industrial projects and commercial construction markets, data centers, and oil and gas markets.

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Operating margin increased from 14.9% in 2018 to 16.3% in 2019. Operating margin increased in 2019 primarily due to higher sales volumes and other operating improvements. Operating margin increased from 13.6% in 2017 to 14.9% in 2018. Operating margin increased in 2018 primarily due to higher sales volumes, savings from restructuring actions, and lower restructuring costs, partially offset by commodity inflation, unfavorable product mix, and increased freight costs.

Operating margin before acquisition integration and divestiture charges increased from 14.9% in 2018 to 16.6% in 2019. The increase in operating margin before acquisition integration and divestiture charges was primarily due to an increase in operating margin.

Hydraulics

	2019			Change from 2018		2018			Change from 2017		2017
Net sales	$	2,552		(7	)%	$	2,756		12	%	$	2,468
Operating profit	$	286		(23	)%	$	370		28	%	$	288
Operating margin	11.2		%			13.4		%			11.7		%

Net sales in 2019 decreased 7% compared to 2018 due to a decrease in organic sales of 5% and a decrease of 2% from the impact of negative currency translation. The decrease in organic sales in 2019 was due to weakness in global mobile equipment markets and destocking at both OEMs and distributors. Net sales in 2018 increased 12% compared to 2017 due to an increase in organic sales of 11% and an increase of 1% from the impact of positive currency translation. The increase in organic sales in 2018 was due to strength in global mobile equipment markets.

Operating margin decreased from 13.4% in 2018 to 11.2% in 2019. The decrease in operating margin in 2019 was primarily due to lower sales volumes, unfavorable product mix and operating inefficiencies. Operating margin increased from 11.7% in 2017 to 13.4% in 2018. The increase in operating margin in 2018 was primarily due to higher sales volumes, lower restructuring costs, and savings from restructuring actions, partially offset by commodity inflation, unfavorable product mix and increased freight costs.

Aerospace

	2019			Change from 2018		2018			Change from 2017		2017
Net sales	$	2,044		8	%	$	1,896		9	%	$	1,744
Operating profit	$	495		24	%	$	398		20	%	$	332
Operating margin	24.2		%			21.0		%			19.0		%
Acquisition integration and divestiture charges	$	1				$	—				$	—
Before acquisition integration and divestiture charges
Operating profit	$	496		25	%	$	398		20	%	$	332
Operating margin	24.3		%			21.0		%			19.0		%

Net sales in 2019 increased 8% compared to 2018 due to an increase in organic sales. The increase in organic sales during 2019 was primarily due to strength in sales to commercial OEM and aftermarket. Net sales in 2018 increased 9% compared to 2017 due to an increase in organic sales of 9%. The increase in organic sales during 2018 was primarily due to higher sales in all major commercial and military end markets.

Operating margin increased from 21.0% in 2018 to 24.2% in 2019. The increase was primarily due to higher sales volumes and favorable product mix. Operating margin increased from 19.0% in 2017 to 21.0% in 2018. The increase was primarily due to higher sales volume and favorable product mix.

Operating margin before acquisition integration and divestiture charges increased from 21.0% in 2018 to 24.3% in 2019. The increase in operating margin before acquisition integration and divestiture charges was primarily due to an increase in operating margin.

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Vehicle

	2019			Change from 2018		2018			Change from 2017		2017
Net sales	$	3,038		(13	)%	$	3,489		5	%	$	3,326
Operating profit	$	460		(25	)%	$	611		13	%	$	541
Operating margin	15.1		%			17.5		%			16.3		%

Net sales decreased 13% in 2019 compared to 2018 due to a decrease in organic sales of 11% and a decrease of 2% from the impact of negative currency translation. The decrease in organic sales in 2019 was primarily driven by weakness in global light vehicle markets and revenues transferring over to the Eaton Cummins Automated Transmission Technologies joint venture. Net sales increased 5% in 2018 compared to 2017 due to an increase in organic sales of 7%, partially offset by a decrease of 2% from the sale of the business discussed in Note 2. The increase in organic sales in 2018 was driven by growth in the Americas and Asia Pacific regions, with particular strength in the North American Class 8 truck market, partially offset by weakness in light vehicle markets in the European region.

Operating margin decreased from 17.5% in 2018 to 15.1% in 2019. The decrease in operating margin in 2019 was primarily due to lower sales volumes and the charge for the expected warranty costs to correct the performance of a product which incorporated a defective part from a supplier. Operating margin increased from 16.3% in 2017 to 17.5% in 2018. The increase in operating margin in 2018 was primarily due to higher sales volumes, partially offset by unfavorable product mix, commodity inflation and increased freight costs.

eMobility

	2019			Change from 2018		2018			Change from 2017		2017
Net sales	$	321		—	%	$	320		13	%	$	283
Operating profit	$	17		(61	)%	$	44		(12	)%	$	50
Operating margin	5.3		%			13.8		%			17.7		%

Net sales were flat in 2019 compared to 2018 due to an increase in organic sales of 1%, offset by a decrease of 1% from the impact of negative currency translation. The increase in organic sales in 2019 was primarily due to growth in Europe. Net sales increased 13% in 2018 compared to 2017 due to an increase in organic sales of 12% and an increase of 1% from the impact of positive currency translation. The increase in organic sales in 2018 was primarily due to strength in North America and Europe.

Operating margin decreased from 17.7% in 2017 to 13.8% in 2018 to 5.3% in 2019. The decrease in operating margin in 2019 and 2018 was primarily due to increased research and development costs.

Corporate Expense (Income)

	2019		Change from 2018		2018		Change from 2017		2017
Amortization of intangible assets	$	367	(4	)%	$	382	(2	)%	$	388
Interest expense - net	236		(13	)%	271		10	%	246
Pension and other postretirement benefits expense	12		1,100	%	1		(98	)%	45
Gain on sale of a business	—		NM		—		NM		(1,077		)
Arbitration decision expense	—		NM		275		NM		—
Other corporate expense - net	469		69	%	277		14	%	244
Total corporate expense (income)	$	1,084	(10	)%	$	1,206	(883	)%	$	(154	)

Total corporate expense decreased 10% in 2019 to $1,084 from $1,206 in 2018 primarily due to the 2018 arbitration decision discussed in Note 8, partially offset by higher acquisition integration and divestiture charges. Corporate results were expense of $1,206 in 2018 compared to income of $154 in 2017. The change in Total corporate expense (income) in 2018 was primarily due to the 2018 arbitration decision discussed in Note 8 and the 2017 gain on the sale of the business discussed in Note 2.

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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. The Company maintains long-term revolving credit facilities totaling $2,000, consisting of a $750 five-year revolving credit facility that will expire November 17, 2022, a $500 four-year revolving credit facility that will expire November 7, 2023, and a $750 five-year revolving credit facility that will expire November 7, 2024. The revolving credit facilities are used to support commercial paper borrowings and are fully and unconditionally guaranteed by Eaton and certain of its direct and indirect subsidiaries on an unsubordinated, unsecured basis. There were no borrowings outstanding under Eaton's revolving credit facilities at December 31, 2019 or 2018. The Company had available lines of credit of $1,027 from various banks primarily for the issuance of letters of credit, of which there was $263 outstanding at December 31, 2019. 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.

On May 14, 2019, a subsidiary of Eaton issued euro denominated notes (2019 Euro Notes) with a face value of €1,100 ($1,232 based on the May 14, 2019 spot rate), in accordance with Regulation S promulgated under the Securities Act of 1933, as amended. The 2019 Euro Notes are comprised of two tranches of €600 and €500, which mature in 2021 and 2025, respectively, with interest payable annually at a respective rate of 0.02% and 0.70%. The issuer received proceeds totaling €1,097 ($1,229 based on the May 14, 2019 spot rate) from the issuance, net of financing costs and discounts.

For additional information on financing transactions and debt, see Note 6 to the Consolidated Financial Statements.

Eaton’s credit facilities and indentures governing certain long-term debt contain various covenants, the violation of which would limit or preclude the use of the credit facilities for future borrowings, or might accelerate the maturity of the related outstanding borrowings covered by the indentures. At Eaton’s present credit rating level, the most restrictive financial covenant provides that the ratio of secured debt (or lease payments due under a sale and leaseback transaction) to adjusted consolidated net worth (or consolidated net tangible assets, in each case as defined in the relevant credit agreement or indenture) may not exceed 10%. Eaton's actual ratios are substantially below the required threshold. In addition, Eaton is 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 $3,451 in 2019, an increase of $793 compared to $2,658 in 2018. The increase in net cash provided by operating activities in 2019 was driven by lower working capital balances compared to 2018, and the absence of a $297 payment made during 2018 for the arbitration decision discussed in Note 8. 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.

Net cash provided by operating activities was $2,658 in 2018, a decrease of $8 compared to $2,666 in 2017. The decrease was driven by a $297 payment made during 2018 for the arbitration decision, offset by lower pension contributions to Eaton's U.S. qualified pension plans in 2018. 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 $1,866 in 2019, an increase in the use of cash of $1,468 compared to $398 in 2018. The increase in the use of cash was primarily driven by cash paid for business acquisitions discussed in Note 2 and by net purchases of short-term investments of $70 in 2019 compared to net sales of $355 in 2018, partially offset by $54 of net proceeds in 2019 compared to net payments of $110 in 2018 from the settlement of currency exchange contracts not designated as hedges. Capital expenditures were $587 in 2019 compared to $565 in 2018. Eaton expects approximately $550 in capital expenditures in 2020.

Net cash used in investing activities was $398 in 2018, an increase in the use of cash of $181 compared to $217 in 2017. The increase in the use of cash was primarily driven by proceeds from the sale of a business as part of the formation of the Eaton Cummins joint venture in 2017 discussed in Note 2 and $110 in payments for the settlement of currency exchange contracts not designated as hedges discussed in Note 13, partially offset by net sales of short-term investments of $355 in 2018 compared to net purchases of $298 in 2017. Capital expenditures were $565 in 2018 compared to $520 in 2017.

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Financing Cash Flow

Net cash used in financing activities was $1,494 in 2019, a decrease in the use of cash of $1,087 compared to $2,581 in 2018. The decrease in the use of cash was primarily due to higher proceeds from borrowings of $1,232 in 2019 compared to $410 in 2018 and lower share repurchases of $1,029 in 2019 compared to $1,271 in 2018.

Net cash used in financing activities was $2,581 in 2018, an increase in the use of cash of $139 compared to $2,442 in 2017. The increase in the use of cash was primarily due to lower proceeds from borrowings of $410 in 2018 compared to $1,000 in 2017, higher share repurchases of $1,271 in 2018 compared to $850 in 2017, and higher dividends paid of $1,149 in 2018 compared to $1,068 in 2017, partially offset by lower payments on borrowings of $574 compared to $1,554 in 2017.

Credit Ratings

Eaton's debt has been assigned the following credit ratings:

Credit Rating Agency (long- /short-term rating)	Rating	Outlook
Standard & Poor's	A-/A-2	Stable outlook
Moody's	Baa1/P-2	Positive outlook
Fitch	BBB+/F1	Stable outlook

Defined Benefits Plans

Pension Plans

During 2019, the fair value of plan assets in the Company’s employee pension plans increased $708 to $5,336 at December 31, 2019. The increase in plan assets was primarily due to higher than expected return on plan assets. At December 31, 2019, the net unfunded position of $1,439 in pension liabilities consisted of $407 in the U.S. qualified pension plan, $1,006 in plans that have no minimum funding requirements, and $99 in all other plans that require minimum funding, partially offset by $73 in plans that are overfunded.

Funding requirements are a major consideration in making contributions to Eaton’s pension plans. With respect to the Company’s pension plans worldwide, the Company intends to contribute annually not less than the minimum required by applicable law and regulations. In 2019, $119 was contributed to the pension plans. The Company anticipates making $128 of contributions to certain pension plans during 2020. The funded status of the Company’s pension plans at the end of 2020, and future contributions, will depend primarily on the actual return on assets during the year and the discount rate used to calculate certain benefits at the end of the year.

Off-Balance Sheet Arrangements

Eaton does not have off-balance sheet arrangements or financings with unconsolidated entities or other persons. The Company made an accounting policy election to not recognize lease assets or liabilities for leases with a term of 12 months or less.

CRITICAL ACCOUNTING POLICIES

The preparation of financial statements in conformity with generally accepted accounting principles (GAAP) in the United States requires management to make certain estimates and assumptions that may involve the exercise of significant judgment. For any estimate or assumption used, there may be other reasonable estimates or assumptions that could have been used. However, based on facts and circumstances inherent in developing estimates and assumptions, management believes it is unlikely that applying other such estimates and assumptions would have caused materially different amounts to have been reported. Actual results may differ from these estimates.

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.

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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.

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.

Impairment of Goodwill and Other Long-Lived Assets

Goodwill

Goodwill is evaluated annually for impairment as of July 1 using either a quantitative or qualitative analysis. Goodwill is tested for impairment at the reporting unit level, which is equivalent to Eaton's operating segments and based on the net assets for each segment, including goodwill and intangible assets. Goodwill is assigned to each operating segment, as this represents the lowest level that constitutes a business and is the level at which management regularly reviews the operating results. The Company performs a quantitative analysis using a discounted cash flow model and other valuation techniques, but may elect to perform a qualitative analysis.

Additionally, goodwill is evaluated for impairment whenever an event occurs or circumstances change that would indicate that it is more likely than not that the fair value of an operating segment is less than its carrying amount. Events or circumstances that may result in an impairment review include changes in macroeconomic conditions, industry and market considerations, cost factors, overall financial performance, other relevant entity-specific events, specific events affecting the reporting unit or sustained decrease in share price.

The annual goodwill impairment test was performed using a qualitative analysis in 2019 and 2018, except for the Hydraulics segment which used a quantitative analysis in 2019. A qualitative analysis is performed by assessing certain trends and factors, including projected market outlook and growth rates, forecasted and actual sales and operating profit margins, discount rates, industry data, and other relevant qualitative factors. These trends and factors are compared to, and based on, the assumptions used in the most recent quantitative analysis performed for each reporting unit. The results of the qualitative analyses did not indicate a need to perform quantitative analysis.

Goodwill impairment testing was also performed using quantitative analyses in 2019 as a result of the Lighting business being classified as held for sale as discussed in Note 2, and in 2018 for the Electrical Products, Vehicle and eMobility segments due to a reorganization of the Company’s businesses resulting in the creation of the eMobility segment. The Company used the relative fair value method to reallocate goodwill.

Quantitative analyses were performed by estimating the fair value for each reporting unit using a discounted cash flow model, which considered forecasted cash flows discounted at an estimated weighted-average cost of capital. The forecasted cash flows were based on the Company's long-term operating plan and a terminal value was used to estimate the operating segment's cash flows beyond the period covered by the operating plan. The weighted-average cost of capital is an estimate of the overall after-tax rate of return required by equity and debt market holders of a business enterprise. These analyses require the exercise of judgments, including judgments about appropriate discount rates, perpetual growth rates, revenue growth, and margin assumptions of the respective reporting unit. Sensitivity analyses were performed around certain of these assumptions in order to assess the reasonableness of the assumptions and the resulting estimated fair values.

Based on these analyses performed in 2019 and 2018, the fair value of Eaton's reporting units continue to substantially exceed their respective carrying amounts and thus, no impairment exists.

Indefinite Life Intangible Assets

Indefinite life intangible assets consist of certain trademarks. They are evaluated annually for impairment as of July 1 using either a quantitative or qualitative analysis to determine whether their fair values exceed their respective carrying amounts. Indefinite life intangible asset impairment testing for 2019 and 2018 was performed using a quantitative analysis. Determining the fair value of these assets requires significant judgment and the Company uses a royalty relief methodology similar to that employed when the associated assets were acquired, but using updated estimates of future sales, cash flows and profitability.

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Additionally, indefinite life intangible assets are evaluated for impairment whenever an event occurs or circumstances change that would indicate that it is more likely than not that the asset is impaired. Events or circumstances that may result in an impairment review include changes in industry and market considerations, cost factors, financial performance, and other relevant entity-specific events that could affect inputs used to determine the respective fair values of the indefinite-lived intangible assets.

For 2019 and 2018, the fair value of indefinite lived intangible assets exceeded the respective carrying value.

Other Long-Lived Assets

Other long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate the carrying amount may not be recoverable. Events or circumstances that may result in an impairment review include operations reporting losses, a significant adverse change in the use of an asset, the planned disposal or sale of the asset, a significant adverse change in the business climate or legal factors related to the asset, or a significant decrease in the estimated market value of an asset. Upon indications of impairment, assets and liabilities are grouped at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities. The asset group would be considered impaired when the estimated future net undiscounted cash flows generated by the asset group are less than its carrying value. In instances where the carrying amount of the asset group exceeded the undiscounted cash flows, the fair value of the asset group would be determined and an impairment loss would be recognized based on the amount by which the carrying value of the asset group exceeds its fair value. Determining asset groups and underlying cash flows requires the use of significant judgment.

For additional information about goodwill and other intangible assets, see Note 4 to the Consolidated Financial Statements.

Divestitures of Businesses

The Company records assets and liabilities of a business to be sold as held for sale in the Consolidated Balance Sheet when all the required criteria are met. The held for sale assets and liabilities are initially measured at the lesser of their carrying value or fair value less cost to sell, with any resulting loss being immediately recognized. In each subsequent reporting period until the business is sold, the Company continues to estimate the fair value less cost to sell of the business and recognizes any additional losses, or any gains to the extent losses were previously recorded on the held for sale assets and liabilities.

The Company used the relative fair value method to allocate goodwill to the Lighting business. The fair values of the Electrical Products segment and Lighting business were estimated based on a combination of the price paid to Eaton by Signify N.V. and a discounted cash flow model. The model includes estimates of future cash flows, future growth rates, terminal value amounts, and the applicable weighted-average cost of capital used to discount those estimated cash flows. The weighted-average cost of capital is an estimate of the overall after-tax rate of return required by equity and debt market holders of a business enterprise. These analyses require the exercise of judgments, including judgments about appropriate discount rates, perpetual growth rates, revenue growth, and margin assumptions. For additional information about the divestitures of businesses, see Note 2 to the Consolidated Financial Statements.

Recoverability of Deferred Income Tax Assets

Eaton is subject to the income tax laws in the jurisdictions in which it operates. In order to determine the income tax provision for financial statement purposes, Eaton must make significant estimates and judgments about its business operations in these jurisdictions. These estimates and judgments are also used in determining the deferred income tax assets and liabilities that have been recognized for differences between the financial statement and income tax basis of assets and liabilities, and income tax loss carryforwards and income tax credit carryforwards.

Management evaluates the realizability of deferred income tax assets for each jurisdiction in which it operates. If the Company experiences cumulative pre-tax income in a particular jurisdiction in a three-year period including the current and prior two years, management normally concludes that the deferred income tax assets will more likely than not be realizable and no valuation allowance is recognized, unless known or planned operating developments, or changes in tax laws, would lead management to conclude otherwise. However, if the Company experiences cumulative pre-tax losses in a particular jurisdiction in a three-year period including the current and prior two years, management then considers a series of factors in the determination of whether the deferred income tax assets can be realized. These factors include historical operating results, known or planned operating developments, the period of time over which certain temporary differences will reverse, consideration of the utilization of certain deferred income tax liabilities, tax law carryback capability in a particular country, prudent and feasible tax planning strategies, changes in tax laws, and estimates of future earnings and taxable income using the same assumptions as those used for the Company’s goodwill and other impairment testing. After evaluation of these factors, if the deferred income tax assets are expected to be realized within the tax carryforward period allowed for that specific country, management would conclude that no valuation allowance would be required. To the extent that the deferred income tax assets exceed the amount that is expected to be realized within the tax carryforward period for a particular jurisdiction, management would establish a valuation allowance. For additional information about income taxes, see Note 9 to the Consolidated Financial Statements.

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Unrecognized Income Tax Benefits

Eaton recognizes an income tax benefit from an uncertain tax position only if it is more likely than not that the benefit would be sustained upon examination by taxing authorities, based on the technical merits of the position. The Company evaluates and adjusts the amount of unrecognized income tax benefits based on changes in law, facts and circumstances. Eaton also estimates, where reasonably possible, the increase or decrease in the amount of unrecognized income tax benefits in the next 12 months.

The evaluation and determination of the amount of unrecognized income tax benefits related to uncertain tax positions is complex and involves both the exercise of judgement and the utilization of certain estimates and assumptions. Each tax position carries unique facts and circumstances that must be evaluated in light of current tax laws, regulations, and judicial decisions. Additionally, the ultimate resolution of the majority of Eaton’s unrecognized income tax benefits is dependent upon uncontrollable factors such as the prospect of retroactive regulations; new case law; and the willingness of the income tax authority to settle the issue, including the timing thereof.

Pension and Other Postretirement Benefits Plans

The measurement of liabilities related to pension plans and other postretirement benefits plans is based on assumptions related to future events including interest rates, return on plan assets, rate of compensation increases, and health care cost trend rates. Actual plan asset performance will either reduce or increase losses included in accumulated other comprehensive loss, which ultimately affects net income.

The discount rate for United States plans was determined by discounting the expected future benefit payments using a theoretical zero-coupon spot yield curve derived from a universe of high-quality bonds as of the measurement date and solving for the single rate that generated the same benefit obligation. Only corporate bonds with a rating of Aa or higher by either Moody’s or Standard & Poor's were included. Callable bonds that are not make-whole bonds and certain other non-comparable bonds were eliminated. Finally, a subset of bonds was selected by grouping the universe of bonds by duration and retaining 50% of the bonds that had the highest yields.

The discount rates for non-United States plans were determined by region and are based on high quality long-term corporate and government bonds. Consideration has been given to the duration of the liabilities in each plan when selecting the bonds to be used in determining the discount rate.

To estimate the service and interest cost components of net periodic benefit cost for the vast majority of its defined benefits pension and other postretirement benefits plans, the Company used a spot rate approach by applying the specific spot rates along the yield curve used to measure the benefit obligation at the beginning of the period to the relevant projected cash flows.

Key assumptions used to calculate pension and other postretirement benefits expense are adjusted at each year-end. A 1-percentage point change in the assumed rate of return on pension plan assets is estimated to have approximately a $49 effect on pension expense. Likewise, a 1-percentage point change in the discount rate is estimated to have approximately a $64 effect on pension expense. A 1-percentage point change in the assumed rate of return on other postretirement benefits assets is estimated to have less than $1 effect on other postretirement benefits expense. A 1-percentage point change in the discount rate is estimated to have approximately a $1 effect on expense for other postretirement benefits plans.

Additional information related to changes in key assumptions used to recognize expense for other postretirement benefits plans is found in Note 7 to the Consolidated Financial Statements.

MARKET RISK DISCLOSURE

On a regular basis, Eaton monitors third-party depository institutions that hold its cash and short-term investments, primarily for safety of principal and secondarily for maximizing yield on those funds. The Company diversifies its cash and short-term investments among counterparties to minimize exposure to any one of these entities. Eaton also monitors the creditworthiness of its customers and suppliers to mitigate any adverse impact.

Eaton uses derivative instruments to manage exposure to volatility in raw material costs, currency, and interest rates on certain debt instruments. Derivative financial instruments used by the Company are straightforward and non-leveraged. 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. See Note 13 to the Consolidated Financial Statements for additional information about hedges and derivative financial instruments.

Eaton’s ability to access the commercial paper market, and the related cost of these borrowings, is based on the strength of its credit rating and overall market conditions. The Company has not experienced any material limitations in its ability to access these sources of liquidity. At December 31, 2019, Eaton had $2,000 of long-term revolving credit facilities with banks in support of its commercial paper program. It has no borrowings outstanding under these credit facilities.

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Interest rate risk can be measured by calculating the short-term earnings impact that would result from adverse changes in interest rates. This exposure results from short-term debt, which includes commercial paper at a floating interest rate, long-term debt that has been swapped to floating rates, and money market investments that have not been swapped to fixed rates. Based upon the balances of investments and floating rate debt at year end 2019, a 100 basis point increase in short-term interest rates would have increased the Company’s net, pre-tax interest expense by $20.

Eaton also measures interest rate risk by estimating the net amount by which the fair value of the Company’s financial liabilities would change as a result of movements in interest rates. Based on Eaton’s best estimate for a hypothetical, 100 basis point increase in interest rates at December 31, 2019, the market value of the Company’s debt and interest rate swap portfolio, in aggregate, would increase by $515.

The Company is exposed to fluctuations in commodity prices due to volatility in raw material costs and contractual agreements with suppliers. To partially mitigate this exposure, Eaton enters into commodity contracts for certain raw material purchases with the objective of minimizing changes in inventory cost due to market price fluctuations. These commodity contracts are designated for hedge accounting and are generally less than one year in duration. Based on Eaton’s best estimate for a hypothetical 10% fluctuation in commodity prices the gain or loss would be less than $1. The sensitivity analysis of the effects of changes in commodity prices assumes the notional value to remain constant for the next 12 months. Any change in the value of the contracts would be offset by an inverse change in the value of the underlying hedged transactions.

The Company is exposed to currency risk associated with translating its functional currency financial statements into its reporting currency, which is the U.S. dollar. As a result, the Company is exposed to movements in the exchange rates of various currencies against the U.S. dollar. Eaton also monitors exposure to transactions denominated in currencies other than the functional currency of each country in which the Company operates, and regularly enters into forward contracts to mitigate that exposure. In the aggregate, Eaton’s portfolio of forward contracts related to such transactions was not material to its Consolidated Financial Statements.

CONTRACTUAL OBLIGATIONS

A summary of contractual obligations as of December 31, 2019 follows:

	2020			2021 to 2022			2023 to 2024			Thereafter			Total
Long-term debt, including current portion(1)	$	242		$	2,674		$	984		$	4,082		$	7,982
Interest expense related to long-term debt	252			460			339			1,634			2,685
Reduction of interest expense from interest rate swap agreements related to long-term debt	(18		)	(39		)	(14		)	(37		)	(108		)
Operating leases	142			195			93			82			512
Finance leases	8			14			6			9			37
Purchase obligations	1,091			183			83			91			1,448
Other obligations	169			10			12			23			214
Held for sale obligations	65			9			4			6			84
Total	$	1,951		$	3,506		$	1,507		$	5,890		$	12,854
(1) Long-term debt excludes deferred gains and losses on derivatives related to debt, adjustments to fair market value, premiums and discounts on long-term debentures, debt issuance costs, and finance leases.

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Interest expense related to long-term debt is based on the applicable interest rate related to the debt instrument, whether fixed or floating. The reduction of interest expense due to interest rate swap agreements related to long-term debt is based on the difference in the fixed interest rate the Company receives from the swap, compared to the floating interest rate the Company pays on the swap. Purchase obligations are entered into with various vendors in the normal course of business. These amounts include commitments for purchases of raw materials, outstanding non-cancelable purchase orders, releases under blanket purchase orders, and commitments under ongoing service arrangements. Other obligations principally include $128 of anticipated contributions to pension plans in 2020, $34 of other postretirement benefits payments expected to be paid in 2020, and $49 of deferred compensation earned under various plans for which the participants have elected to receive disbursement at a later date. The table above does not include all other future expected pension and other postretirement benefits payments. Information related to the amounts of these future payments is described in Note 7 to the Consolidated Financial Statements. The table above also excludes the liability for unrecognized income tax benefits, since the Company cannot predict with reasonable certainty the timing of cash settlements with the respective taxing authorities. At December 31, 2019, the gross liability for unrecognized income tax benefits totaled $1,001 and interest and penalties were $93.

FORWARD-LOOKING STATEMENTS

This Annual Report to Shareholders contains forward-looking statements concerning litigation and regulatory developments, expected pension or other post-retirement benefits payments and rates of return, and expected future liquidity. These statements may discuss goals, intentions and expectations as to future trends, plans, events, results of operations or financial condition, or state other information relating to Eaton, based on current beliefs of management as well as assumptions made by, and information currently available to, management. Forward-looking statements generally will be accompanied by words such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “forecast,” “guidance,” “intend,” “may,” “possible,” “potential,” “predict,” “project” or other similar words, phrases or expressions. These statements should be used with caution and are subject to various risks and uncertainties, many of which are outside Eaton’s control. The following factors could cause actual results to differ materially from those in the forward-looking statements: unanticipated changes in the markets for the Company’s business segments; unanticipated downturns in business relationships with customers or their purchases from us; the availability of credit to customers and suppliers; competitive pressures on sales and pricing; unanticipated changes in the cost of material and other production costs, or unexpected costs that cannot be recouped in product pricing; the introduction of competing technologies; unexpected technical or marketing difficulties; unexpected claims, charges, litigation or dispute resolutions; strikes or other labor unrest; the impact of acquisitions and divestitures; unanticipated difficulties integrating acquisitions; new laws and governmental regulations; interest rate changes; tax rate changes or exposure to additional income tax liability; stock market and currency fluctuations; war, natural disasters, 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.

93

QUARTERLY DATA (unaudited)

	Quarter ended in 2019												Quarter ended in 2018
(In millions except for per share data)	Dec. 31			Sept. 30			June 30			Mar. 31			Dec. 31			Sept. 30			June 30			Mar. 31
Net sales	$	5,238		$	5,314		$	5,533		$	5,305		$	5,459		$	5,412		$	5,487		$	5,251
Gross profit	1,682			1,802			1,836			1,732			1,789			1,815			1,816			1,678
Percent of net sales	32.1		%	33.9		%	33.2		%	32.6		%	32.8		%	33.5		%	33.1		%	32.0		%
Income before income taxes	532			718			738			603			726			439			694			565
Net income	453			602			636			522			632			416			611			487
Less net (income) loss for    noncontrolling interests	(1		)	(1		)	—			—			(1		)	—			(1		)	1
Net income attributable to Eaton ordinary shareholders	$	452		$	601		$	636		$	522		$	631		$	416		$	610		$	488
Net income per share attributable to Eaton ordinary shareholders
Diluted	$	1.09		$	1.44		$	1.50		$	1.23		$	1.46		$	0.95		$	1.39		$	1.10
Basic	1.09			1.44			1.51			1.23			1.46			0.96			1.40			1.11
Cash dividends declared per    ordinary share	$	0.71		$	0.71		$	0.71		$	0.71		$	0.66		$	0.66		$	0.66		$	0.66
Earnings per share for the four quarters in a year may not equal full year earnings per share.
Acquisition integration, divestiture charges and transaction costs included in Income before income taxes are as follows:
	Quarter ended in 2019												Quarter ended in 2018
	Dec. 31			Sept. 30			June 30			Mar. 31			Dec. 31			Sept. 30			June 30			Mar. 31
Acquisition integration, divestiture charges and transaction costs	$	133		$	39		$	14		$	12		$	—		$	—		$	—		$	—

FIVE-YEAR CONSOLIDATED FINANCIAL SUMMARY (unaudited)

(In millions except for per share data)	2019			2018			2017			2016			2015
Net sales	$	21,390		$	21,609		$	20,404		$	19,747		$	20,855
Income before income taxes	2,591			2,424			3,368			2,118			2,133
Net income	2,213			2,146			2,986			1,919			1,974
Less net income for noncontrolling interests	(2		)	(1		)	(1		)	(3		)	(2		)
Net income attributable to Eaton ordinary shareholders	$	2,211		$	2,145		$	2,985		$	1,916		$	1,972
Net income per share attributable to Eaton ordinary shareholders
Diluted	$	5.25		$	4.91		$	6.68		$	4.20		$	4.22
Basic	5.28			4.93			6.71			4.21			4.23
Weighted-average number of ordinary shares outstanding
Diluted	420.8			436.9			447.0			456.5			467.1
Basic	419.0			434.3			444.5			455.0			465.5
Cash dividends declared    per ordinary share	$	2.84		$	2.64		$	2.40		$	2.28		$	2.20
Total assets (1)	$	32,805		$	31,092		$	32,623		$	30,476		$	31,059
Long-term debt	7,819			6,768			7,167			6,711			7,746
Total debt	8,322			7,521			7,751			8,277			8,414
Eaton shareholders' equity	16,082			16,107			17,253			14,954			15,249
Eaton shareholders' equity    per ordinary share	$	38.91		$	38.02		$	39.22		$	33.28		$	33.24
Ordinary shares outstanding	413.3			423.6			439.9			449.4			458.8

⁽¹⁾ Total assets in 2019 reflect the adoption of Accounting Standard Update 2016-02, Leases, using the optional transition method and prior periods were not restated, as described in Note 1 to the consolidated financial statements.

EX-4.1

Exhibit 4.1

DESCRIPTION OF EATON CORPORATION PLC’S SECURITIES REGISTERED PURSUANT TO

SECTION 12 OF THE SECURITIES EXCHANGE ACT OF 1934

The following summarizes the terms and provisions of the ordinary shares of Eaton Corporation plc, an Irish public limited company (the “Company”), which are registered under Section 12(b) of the Securities Exchange Act of 1934, as amended. This summary does not purport to be complete and is qualified in its entirety by reference to the Companies Act 2014 of Ireland, as amended, and all its statutory instruments which are to be read as one with, or construed, or to be read together with such Act (the “Companies Acts”), and the complete text of the Company’s amended and restated memorandum and articles of association, which the Company has filed with the U.S. Securities and Exchange Commission.

Authorized Share Capital

The authorized share capital of the Company is €40,000 and $7,610,000, comprised of 40,000 euro deferred shares par value €1.00 per share, 750,000,000 ordinary shares par value $0.01 per share (“ordinary shares”), 10,000 A preferred shares par value $1.00 per share, and 10,000,000 serial preferred shares par value $0.01 per share. The Company has issued and outstanding ordinary shares, euro deferred shares, A preferred shares and no serial preferred shares issued.

The Company may issue shares subject to the maximum authorized share capital contained in its memorandum and articles of association. The authorized share capital may be increased or reduced by a resolution approved by a simple majority of the votes cast at a general meeting by those of the Company’s shareholders that are entitled to vote at such meetings (referred to under Irish law as an “ordinary resolution”). The shares comprising the authorized share capital of the Company may be divided into shares of such nominal value as the resolution shall prescribe. As a matter of Irish company law, the directors of a company may issue relevant securities, up to a specified threshold, without shareholder approval once authorized to do so by the articles of association or by an ordinary resolution adopted by the shareholders at a general meeting. The authorization may be granted for a maximum period of five years. However, it is customary practice in Ireland for such authority to be limited to a period of 12 to 18 months, at which point it must be renewed by the shareholders by an ordinary resolution. Pursuant to a shareholder resolution passed on April 24, 2019, directors of the Company are authorized to issue relevant securities, up to a specified threshold, without shareholder approval for a period expiring 18 months from the date of the passing of the shareholder resolution.

Irish law does not recognize fractional shares held of record. Accordingly, the Company’s articles of association do not provide for the issuance of fractional shares of the Company, and the official Irish register of the Company does not reflect any fractional shares.

Whenever an alteration or reorganization of the share capital of the Company would result in any shareholder of the Company becoming entitled to fractions of a share, the Company’s board of directors may, on behalf of those shareholders that would become entitled to fractions of a share, arrange for the sale of the shares representing fractions and the distribution of the net proceeds of such sale in due proportion among the shareholders who would have been entitled to the fractions. For the purpose of any such sale the board may authorize some person to transfer the shares representing fractions to the purchaser, who shall not be bound to see to the application of the purchase money, nor shall his title to the shares be affected by any irregularity or invalidity in the proceedings relating to the sale.

The rights and restrictions to which the ordinary shares are subject are prescribed in the Company’s articles of association.

Ordinary Shares

Exchange and Trading Symbol

The ordinary shares are listed for trading on the New York Stock Exchange (“NYSE”) under the trading symbol “ETN.”

1

Exhibit 4.1

Preemption Rights, Share Warrants and Share Options

Under Irish law certain statutory preemption rights apply automatically in favor of shareholders where shares are to be issued for cash. However, the Company has opted out of these preemption rights by way of a shareholder resolution, as permitted under Irish company law up to a specified threshold. The authorization may be granted for a maximum period of five years. However, in line with customary practice in Ireland, the authority is limited to 18 months from the date of passing of the shareholder resolution, at which point it must be renewed by a further resolution approved by not less than 75% of the votes cast at a general meeting by those of the Company’s shareholders that are entitled to vote at such meetings (referred to under Irish law as a “special resolution”). If the opt-out is not renewed, shares issued for cash must be offered to existing shareholders of the Company on a pro rata basis to their existing shareholding before the shares can be issued to any new shareholders. The statutory preemption rights do not apply where shares are issued for non-cash consideration (such as in a stock-for-stock acquisition) and do not apply to the issue of non-equity shares (that is, shares that have the right to participate only up to a specified amount in any income or capital distribution) or where shares are issued pursuant to an employee stock option or similar equity plan.

The memorandum and articles of association of the Company provide that, subject to any shareholder approval requirement under any laws, regulations, or the rules of any stock exchange to which the Company is subject, the board of directors is authorized, from time to time, in its discretion, to grant such persons, including directors, for such periods and upon such terms as the board deems advisable, options to purchase such number of shares of any class or classes or of any series of any class as the board may deem advisable, and to cause warrants or other appropriate instruments evidencing such options to be issued. The Companies Acts provide that directors may issue share warrants or options without shareholder approval once authorized to do so by the articles of association or an ordinary resolution of shareholders. The Company is subject to the rules of the NYSE and the Internal Revenue Code of 1986, as amended, that require shareholder approval of certain equity plan and share issuances. The Company’s board of directors may issue shares upon exercise of warrants or options without shareholder approval or authorization (up to the relevant authorized share capital limit).

Dividends

Under Irish law, dividends and distributions may only be made from distributable reserves. Distributable reserves generally means accumulated realized profits less accumulated realized losses and includes reserves created by way of capital reduction. In addition, no distribution or dividend may be made unless the net assets of the Company are equal to, or in excess of, the aggregate of the Company’s called up share capital plus undistributable reserves and the distribution does not reduce the Company’s net assets below such aggregate. Undistributable reserves include the Company’s undenominated capital, the redemption reserve fund and the amount by which the Company’s accumulated unrealized profits, so far as not previously utilized by any capitalization, exceed the Company’s accumulated unrealized losses, so far as not previously written off in a reduction or reorganization of capital.

The determination as to whether or not the Company has sufficient distributable reserves to fund a dividend must be made by reference to “relevant financial statements” of the Company. The “relevant financial statements” will be either the last set of unconsolidated annual audited financial statements or other financial statements properly prepared in accordance with the Companies Acts, which give a “true and fair view” of the Company’s unconsolidated financial position and accord with accepted accounting practice. The relevant financial statements must be filed in the Companies Registration Office (the official public registry for companies in Ireland).

The Company’s memorandum and articles of association authorize the board of directors to declare dividends without shareholder approval to the extent they appear justified by the profits of the Company. The board of directors may also recommend a dividend to be approved and declared by the Company’s shareholders at a general meeting. The board of directors may direct that the payment be made by distribution of assets, shares or cash and no dividend issued may exceed the amount recommended by the directors. Dividends may be declared and paid in the form of cash or non-cash assets and may be paid in U.S. dollars or any other currency. All holders of ordinary shares of the Company participate equally in respect of any dividend which may be declared in respect of ordinary shares by the Company. See “Preference Shares” for a description of the rights attaching to other shares in the capital of the Company with respect to dividends.

The directors of the Company may deduct from any dividend payable to any shareholder any amounts payable by such shareholder to the Company in relation to the shares of the Company.

The directors may also authorize the Company to issue shares with preferred rights to participate in dividends declared by the Company. The holders of preference shares may, depending on their terms, rank senior to the Company’s ordinary shares in terms of dividend rights and/or be entitled to claim arrears of a declared dividend out of subsequently declared dividends in priority to ordinary shareholders.

2

Exhibit 4.1

Share Repurchases, Redemptions and Conversions

Overview

The Company’s memorandum and articles of association provide that any ordinary share which the Company has acquired shall be deemed to be a redeemable share, unless the board resolves otherwise. Accordingly, for Irish company law purposes, the repurchase of ordinary shares by the Company will technically be effected as a redemption of those shares as described below under “Ordinary Shares-Share Repurchases, Redemptions and Conversions-Repurchases and Redemptions by the Company.” If the articles of association of the Company did not contain such provision, all repurchases by the Company would be subject to many of the same rules that apply to purchases of the Company’s ordinary shares by subsidiaries described below under “Ordinary Shares-Share Repurchases, Redemptions and Conversions-Purchases by Subsidiaries of the Company,” including the shareholder approval requirements described below and the requirement that any on-market purchases be effected on a “recognized stock exchange.” Neither Irish law nor any constituent document of the Company places limitations on the right of nonresident or foreign owners to vote or hold ordinary shares. Except where otherwise noted, references elsewhere in this section to repurchasing or buying back ordinary shares of the Company refer to the redemption of ordinary shares by the Company or the purchase of ordinary shares of the Company by a subsidiary of the Company, in each case in accordance with the memorandum and articles of association and Irish company law as described below.

Repurchases and Redemptions by the Company

Under Irish law, a company may issue redeemable shares and redeem them out of distributable reserves or, where the company proposes to cancel the shares on their acquisition, the proceeds of a new issue of shares for that purpose. The Company may only issue redeemable shares if the nominal value of the issued share capital that is not redeemable is not less than 10% of the nominal value of the total issued share capital of the Company. All redeemable shares must also be fully-paid. Based on the provision of the Company’s articles of association described above, shareholder approval will not be required to redeem the Company shares.

The Company may also be given an additional general authority by its shareholders to purchase its own shares on-market which would take effect on the same terms and be subject to the same conditions as applicable to purchases by the Company’s subsidiaries as described below.

Repurchased and redeemed shares may be cancelled or held as treasury shares. The nominal value of treasury shares held by the Company at any time must not exceed 10% of the nominal value of the issued share capital of the Company. The Company may not exercise any voting rights in respect of any shares held as treasury shares. Treasury shares may be cancelled by the Company or re-issued subject to certain conditions.

Purchases by Subsidiaries of the Company

Under Irish law, an Irish or non-Irish subsidiary may purchase shares of the Company either on-market or off-market. For a subsidiary of the Company to make on-market purchases of the Company’s ordinary shares, the shareholders of the Company must provide general authorization for such purchase by way of ordinary resolution. However, as long as this general authority has been granted, no specific shareholder authority for a particular on-market purchase by a subsidiary of the Company's ordinary shares is required. For an off-market purchase by a subsidiary of the Company, the proposed purchase contract must be authorized by special resolution of the shareholders before the contract is entered into. The person whose shares are to be bought back cannot vote in favor of the special resolution and, for at least 21 days prior to the special resolution being passed, the purchase contract must be on display or must be available for inspection by shareholders at the registered office of the Company.

In order for a subsidiary of the Company to make an on-market purchase of the Company’s ordinary shares, such shares must be purchased on a “recognized stock exchange.” The NYSE, on which the ordinary shares of the Company are listed, is specified as a recognized stock exchange for this purpose by Irish company law.

The number of shares held by the subsidiaries of the Company at any time will count as treasury shares and will be included in any calculation of the permitted treasury share threshold of 10% of the nominal value of the issued share capital of the Company. While a subsidiary holds shares of the Company, it cannot exercise any voting rights in respect of those shares. The acquisition of the shares of the Company by a subsidiary must be funded out of distributable reserves of the subsidiary.

Liens on Shares, Calls on Shares and Forfeiture of Shares

The Company’s articles of association provide that the Company will have a first and paramount lien on every share for all moneys payable, whether presently due or not, payable in respect of such Company share. Subject to the terms of their allotment, directors may call for any unpaid amounts in respect of any shares to be paid, and if payment is not made, the shares may be forfeited. These provisions are standard inclusions in the articles of association of an Irish company limited by shares such as the Company and will only be applicable to shares of the Company that have not been fully paid up.

3

Exhibit 4.1

Consolidation and Division; Subdivision

Under its articles of association, the Company may, by ordinary resolution, consolidate and divide all or any of its share capital into shares of larger nominal value than its existing shares or subdivide its shares into smaller amounts than is fixed by its memorandum of association.

Reduction of Share Capital

The Company may, by ordinary resolution, reduce its authorized share capital in any way. The Company also may, by special resolution and subject to confirmation by the Irish High Court, reduce or cancel its issued share capital in any manner permitted by the Companies Acts.

Annual Meetings of Shareholders

The Company is required to hold an annual general meeting at intervals of no more than 15 months, provided that an annual general meeting is held in each calendar year following the first annual general meeting and no more than nine months after the Company's fiscal year-end.

Notice of an annual general meeting must be given to all of the Company’s shareholders (except for euro deferred shareholders) and to the auditors of the Company. The articles of association of the Company provide for a minimum notice period of 21 clear days, which is the minimum permitted under Irish law.

The only matters which must, as a matter of Irish company law, be transacted at an annual general meeting are the consideration of the company’s statutory financial statements and the report of the directors and the report of the statutory auditors on those statements and that report, the review by the members of the Company’s affairs, the appointment of new auditors and the fixing of the auditor’s remuneration. If no resolution is made in respect of the reappointment of an existing auditor at an annual general meeting, the existing auditor will be deemed to have continued in office.

Extraordinary General Meetings of Shareholders

Extraordinary general meetings of the Company may be convened by (i) the board of directors, (ii) on requisition of the shareholders holding not less than 10% of the paid up share capital of the Company carrying voting rights, or (iii) on requisition of the Company’s auditors. Extraordinary general meetings are generally held for the purposes of approving shareholder resolutions as may be required from time to time. At any extraordinary general meeting only such business shall be conducted as is set forth in the notice thereof.

Notice of an extraordinary general meeting must be given to all Company shareholders (except for euro deferred shareholders and A preferred shareholders) and to the auditors of the Company. Under Irish law and the Company’s articles of association, the minimum notice periods are 21 clear days’ notice in writing for an extraordinary general meeting to approve a special resolution and 14 clear days’ notice in writing for any other extraordinary general meeting.

In the case of an extraordinary general meeting convened by requisition of shareholders of the Company, the proposed objects of the meeting must be set out in the requisition notice. Upon receipt of any such valid requisition notice, the Company’s board of directors has 21 days to convene a meeting of the Company’s shareholders to vote on the matters set out in the requisition notice. This meeting must be held within two months of the receipt of the requisition notice. If the board of directors does not convene the meeting within such 21-day period, the requisitioning shareholders, or any of them representing more than one half of the total voting rights of all of them, may themselves convene a meeting, which meeting must be held within three months of the Company’s receipt of the requisition notice.

If the board of directors becomes aware that the net assets of the Company are not greater than half of the amount of the Company’s called-up share capital, the directors of the Company must convene an extraordinary general meeting of the Company’s shareholders not later than 28 days from the date that they learn of this fact to consider how to address the situation.

Quorum for General Meetings

The articles of association of the Company provide that no business shall be transacted at any general meeting unless a quorum is present. Three shareholders present in person or by proxy at any meeting of shareholders shall constitute a quorum for such meeting but no action required by law or the articles of association of the Company to be authorized or taken by holders of a designated proportion of the shares of any particular class or of each class may be authorized or taken by a lesser proportion.

Voting

The Company’s articles of association provide that the board or the chairman may determine the manner in which the poll is to be taken and the manner in which the votes are to be counted.

4

Exhibit 4.1

Every shareholder is entitled to one vote for each ordinary share that he or she holds as of the record date for the meeting. Voting rights may be exercised by shareholders registered in the Company’s share register as of the record date for the meeting or by a duly appointed proxy, which proxy need not be a shareholder. Where interests in shares are held by a nominee trust company, this company may exercise the rights of the beneficial holders on their behalf as their proxy. All proxies must be appointed in the manner prescribed by the Company’s articles of association, which permit shareholders to notify the Company of their proxy appointments electronically, in writing or in such other manner as may be approved by the Company’s board. A proxy must be delivered to the Company no later than 3 hours, or such other time as may be communicated to shareholders, before the time for holding the meeting or adjourned meeting at which the person named in the proxy proposes to vote.

In accordance with the articles of association of the Company, the directors of the Company may from time to time authorize the Company to issue serial preferred shares. These serial preferred shares have one vote for each such share and in certain circumstances provide the holders of such shares an entitlement to elect two members of the board. Treasury shares or shares of the Company that are held by subsidiaries of the Company are not entitled to be voted at general meetings of shareholders.

Irish company law requires special resolutions of the shareholders at a general meeting to approve certain matters. Examples of matters requiring special resolutions include:

• amending the objects or memorandum of association of the Company;

• amending the articles of association of the Company;

• approving a change of name of the Company;

• authorizing the entering into of a guarantee or provision of security in connection with a loan, quasi-loan, or credit transaction to a director or connected person;

• opting out of preemption rights on the issuance of new shares;

• re-registration of the Company from a public limited company to a private company;

• variation of class rights attaching to classes of shares (where the articles of association do not provide otherwise);

• purchase of own shares off-market;

• reduction of issued share capital;

• sanctioning a compromise/scheme of arrangement;

• resolving that the Company be wound up by the Irish courts;

• resolving in favor of a shareholder’s voluntary winding-up;

• re-designation of shares into different share classes; and

• setting the re-issue price of treasury shares.

Variation of Rights Attaching to a Class or Series of Shares

Under the Company’s articles of association and the Companies Acts, any variation of class rights attaching to the issued shares of the Company must be approved by a special resolution of the shareholders of the affected class or with the consent in writing of the holders of two-thirds of all the votes of that class of shares.

The provisions of the articles of association of the Company relating to general meetings apply to general meetings of the holders of any class of shares except that the necessary quorum is determined in reference to the shares of the holders of the class. Accordingly, for general meetings of holders of a particular class of shares, a quorum consists of three shareholders present in person or by proxy or in the case of a class with three or fewer members, one person present in person or by proxy.

5

Exhibit 4.1

Inspection of Books and Records

Under Irish law, shareholders have the right to: (i) receive a copy of the memorandum and articles of association of the Company and any act of the Irish Government which alters the memorandum of the Company; (ii) inspect and obtain copies of the minutes of general meetings and resolutions of the Company; (iii) inspect and receive a copy of the register of shareholders, register of directors and secretaries, register of directors’ interests and other statutory registers maintained by the Company; (iv) receive copies of financial statements and directors’ and auditors’ reports which have previously been sent to shareholders prior to an annual general meeting; and (v) receive financial statements of any subsidiary of the Company which have previously been sent to shareholders prior to an annual general meeting for the preceding ten years. The auditors of the Company also have the right to inspect all books, records, and vouchers of the Company. The auditors’ report must be circulated to the shareholders with the Company’s financial statements prepared in accordance with Irish law not less than 21 clear days before the annual general meeting.

Acquisitions

An Irish public limited company may be acquired in a number of ways, including:

• a court-approved scheme of arrangement under the Companies Acts. A scheme of arrangement with shareholders requires a court order from the Irish High Court and the approval of a majority in number representing 75% in value of the shareholders present and voting in person or by proxy at a meeting called to approve the scheme;

• through a tender or takeover offer by a third party for all of the shares of the Company. Where the holders of 80% or more of the Company’s shares have accepted an offer for their shares in the Company, the remaining shareholders may also be statutorily required to transfer their shares. If the bidder does not exercise its “squeeze out” right, then the non-accepting shareholders also have a statutory right to require the bidder to acquire their shares on the same terms. If shares of the Company were to be listed on the main market of Euronext Dublin or another regulated stock exchange in the European Union, this threshold would be increased to 90%; and

• it is also possible for the Company to be acquired by way of a transaction with an EU-incorporated company under the EU Cross-Border Mergers Directive 2005/56/EC. Such a transaction must be approved by a special resolution. If the Company is being merged with another EU company under the EU Cross-Border Mergers Directive 2005/56/EC and the consideration payable to the Company’s shareholders is not all in the form of cash, the Company’s shareholders may be entitled to require their shares to be acquired at fair value.

The affirmative vote or written consent of the holders of shares entitling them to exercise two-thirds of the voting power of the Company, given in person or by proxy at a meeting called for the purpose, shall be necessary to approve:

(a) the sale, exchange, lease, transfer, or other disposition by the Company of all, or substantially all, of its assets or business;

(b) the consolidation of the Company, or its merger, into another company;

(c) the merger into the Company of another company or companies if the merger involves the issuance or transfer by the Company to the shareholders of the other constituent company or companies of such number of shares of the Company as entitle the holders thereof to exercise at least one-sixth of the voting power of the Company in the election of directors immediately after the consummation of the merger;

(d) a combination or majority share acquisition in which the Company is the acquiring company and its voting shares are issued or transferred to another company if the combination or majority share acquisition involves the issuance or transfer by the Company to the shareholders of the other company or companies of such number of shares of the Company as entitle the holders thereof to exercise at least one-sixth of the voting power of the Company in the election of directors immediately after the consummation of the combination or majority share acquisition; or

(e) to approve any agreement, contract, or other arrangement providing for any of the transactions described in subparagraph (a) above.

6

Exhibit 4.1

Disclosure of Interests in Shares

Under the Companies Acts, the Company’s shareholders must notify the Company if, as a result of a transaction, the shareholder will become interested in 3% or more of the shares of the Company; or if as a result of a transaction a shareholder who was interested in more than 3% of the shares of the Company ceases to be so interested. Where a shareholder is interested in more than 3% of the shares of the Company, the shareholder must notify the Company of any alteration of his or her interest that brings his or her total holding through the nearest whole percentage number, whether an increase or a reduction. The relevant percentage figure is calculated by reference to the aggregate nominal value of the shares in which the shareholder is interested as a proportion of the entire nominal value of the issued share capital of the Company (or any such class of share capital in issue). Where the percentage level of the shareholder’s interest does not amount to a whole percentage this figure may be rounded down to the next whole number. The Company must be notified within five business days of the transaction or alteration of the shareholder’s interests that gave rise to the notification requirement. If a shareholder fails to comply with these notification requirements, the shareholder’s rights in respect of any of the Company shares it holds will not be enforceable, either directly or indirectly. However, such person may apply to the court to have the rights attaching to such shares reinstated.

In addition to these disclosure requirements, the Company, under the Companies Acts, may, by notice in writing, require a person whom the Company knows or has reasonable cause to believe to be, or at any time during the three years immediately preceding the date on which such notice is issued to have been, interested in shares comprised in the Company’s relevant share capital to: (i) indicate whether or not it is the case and (ii) where such person holds or has during that time held an interest in the shares of the Company, to provide additional information, including the person’s own past or present interests in shares of the Company. If the recipient of the notice fails to respond within the reasonable time period specified in the notice, the Company may apply to court for an order directing that the affected shares be subject to certain restrictions, as prescribed by the Companies Acts, as follows:

• any transfer of those shares, or in the case of unissued shares any transfer of the right to be issued with shares and any issue of shares, shall be void;

• no voting rights shall be exercisable in respect of those shares;

• no further shares shall be issued in right of those shares or in pursuance of any offer made to the holder of those shares; and

• no payment shall be made of any sums due from the Company on those shares, whether in respect of capital or otherwise.

The court may also order that shares subject to any of these restrictions be sold with the restrictions terminating upon the completion of the sale.

In the event the Company is in an offer period pursuant to the Irish Takeover Rules, accelerated disclosure provisions apply for persons holding an interest in the Company’s securities of 1% or more.

Corporate Governance

The articles of association of the Company delegate authority over the day-to-day management of the Company to the board of directors. The board of directors may then delegate any of its powers, authorities, and discretions (with power to sub-delegate) to any committee, consisting of such person or persons (whether directors or not) as it thinks fit, but regardless, the directors remain responsible, as a matter of Irish law, for the proper management of the affairs of the Company. Committees may meet and adjourn as they determine proper. Unless otherwise determined by the board of directors, the quorum necessary for the transaction of business at any committee meeting shall be a majority of the members of such committee then in office.

Appointment of Directors

The Companies Acts provide for a minimum of two directors. The Company’s memorandum and articles of association provide that the number of directors shall be fixed from time to time solely by the board, provided, however, that in no case shall the number fixed by the board be less than 9 and not more than 18. The fixed maximum and fixed minimum number of directors may be fixed or changed by resolution adopted by the vote of shareholders entitled to exercise two-thirds of the voting power of the shares represented at a meeting called to elect directors in person or by proxy at such meeting and entitled to vote at such election. No reduction in the number of directors shall have the effect of removing any director prior to the expiration of his or her term of office. Directors of the Company are elected by way of an ordinary resolution at a general meeting.

7

Exhibit 4.1

The Company’s articles of association provide for majority voting in uncontested director elections. Under this standard, each shareholder is entitled to one vote per share for each director position, and only candidates receiving a majority of votes cast are elected. The articles of association provide for a plurality voting standard in contested director elections. Plurality voting will be used if the number of director nominees exceeds the size of the board. Under this standard, each shareholder is entitled to one vote per share for each director position, and the nominees receiving the most votes for those positions are elected. A contested election involving plurality voting will occur if the number of director nominees exceeds the number of directors fixed from time to time by the board, rather than the maximum allowable size of the board contained in the articles of association. If the number of the directors is reduced below the fixed minimum number, the remaining director or directors shall appoint as soon as practicable, an additional director or additional directors to make up such minimum or shall convene a general meeting of the Company for the purpose of making such appointment. Each director of the Company must retire from office at each annual shareholder meeting and shall be eligible for re-election.

Removal of Directors

Under the Companies Acts, the shareholders may, by an ordinary resolution, remove a director from office before the expiration of his or her term at a meeting held on no less than 28 days’ notice and at which the director is entitled to be heard. The power of removal is without prejudice to any claim for damages for breach of contract (e.g., employment contract) that the director may have against the Company in respect of his removal.

The board of directors may fill any vacancy occurring on the board of directors. If the Company’s board of directors fills a vacancy, the director’s term expires at the next annual general meeting. A vacancy on the board of directors created by the removal of a director may be filled by the Company’s board of directors.

Duration; Dissolution; Rights upon Liquidation

The Company’s duration is unlimited. The Company may be dissolved and wound up at any time by way of a shareholder’s voluntary winding up or a creditors’ winding up. In the case of a shareholder’s voluntary winding-up, a special resolution of shareholders is required. The Company may also be dissolved by way of court order on the application of a creditor, or by the Companies Registration Office as an enforcement measure where the Company has failed to file certain returns.

The rights of the shareholders to a return of the Company’s assets on dissolution or winding up, following the settlement of all claims of creditors, may be prescribed in the Company’s articles of association or the terms of any preference shares issued by the directors of the Company from time to time. The holders of preferred shares in particular may have the right to priority in a dissolution or winding up of the Company. If the memorandum and articles of association contain no specific provisions in respect of a dissolution or winding up then, subject to the priorities of any creditors, the assets will be distributed to shareholders in proportion to the paid-up nominal value of the shares held. The Company’s articles of association provide that the ordinary shareholders of the Company are entitled to participate pro rata in a winding up, but their right to do so is subject to the rights of any holders of the A preferred shares and serial preferred shares to participate under the terms of any series or class of such shares.

Uncertificated Shares

Holders of ordinary shares of the Company have the right upon request to require the Company to issue certificates for their shares. Subject to any such requests, the Company only issues uncertificated ordinary shares.

No Sinking Fund

The Company’s ordinary shares have no sinking fund provisions.

Transfer and Registration of Shares

The transfer agent for the Company maintains the share register, registration in which is determinative of membership in the Company. A shareholder of the Company who holds shares beneficially is not the holder of record of such shares. Instead, the depository or other nominee is the holder of record of those shares. Accordingly, a transfer of shares from a person who holds such shares beneficially to a person who also holds such shares beneficially through a depository or other nominee will not be registered in the Company’s official share register, as the depository or other nominee will remain the record holder of any such shares.

8

Exhibit 4.1

A written instrument of transfer is required under Irish law in order to register on the Company’s official share register any transfer of shares (i) from a person who holds such shares directly, to any other person, (ii) from a person who holds such shares beneficially to a person who holds such shares directly, or (iii) from a person who holds such shares beneficially to another person who holds such shares beneficially where the transfer involves a change in the depository or other nominee that is the record owner of the transferred shares. An instrument of transfer is also required for a shareholder who directly holds shares to transfer those shares into his or her own broker account (or vice versa). Such instruments of transfer may give rise to Irish stamp duty, which must be paid prior to registration of the transfer on the Company’s official Irish share register. However, a shareholder who directly holds shares may transfer those shares into his or her own broker account (or vice versa) without giving rise to Irish stamp duty, provided there is no change in the ultimate beneficial ownership of the shares as a result of the transfer and the transfer is not made in contemplation of a sale of the shares.

Any transfer of the Company ordinary shares that is subject to Irish stamp duty will not be registered in the name of the buyer unless an instrument of transfer is duly stamped and provided to the transfer agent. The Company’s articles of association allow the Company, in its absolute discretion, to create an instrument of transfer and pay (or procure the payment of) any stamp duty, which is the legal obligation of a buyer. In the event of any such payment, the Company is (on behalf of itself or its affiliates) entitled to (i) seek reimbursement from the buyer or seller (at its discretion), (ii) set-off the amount of the stamp duty against future dividends payable to the buyer or seller (at its discretion), and (iii) claim a lien against the Company ordinary shares on which it has paid stamp duty. Parties to a share transfer may assume that any stamp duty arising in respect of a transaction in the Company’s ordinary shares has been paid unless one or both of such parties is otherwise notified by the Company.

The Company’s memorandum and articles of association delegate to the Company’s secretary the authority to execute an instrument of transfer on behalf of a transferring party.

In order to help ensure that the official share register is regularly updated to reflect trading of the Company ordinary shares occurring through normal electronic systems, the Company regularly produces any required instruments of transfer in connection with any transactions for which it pays stamp duty (subject to the reimbursement and set-off rights described above). In the event that the Company notifies one or both of the parties to a share transfer that it believes stamp duty is required to be paid in connection with the transfer and that it will not pay the stamp duty, the parties may either themselves arrange for the execution of the required instrument of transfer (and may request a form of instrument of transfer from the Company for this purpose) or request that the Company execute an instrument of transfer on behalf of the transferring party in a form determined by the Company. In either event, if the parties to the share transfer have the instrument of transfer duly stamped (to the extent required) and then provide it to the Company's transfer agent, the buyer will be registered as the legal owner of the relevant shares on the Company's official Irish share register (subject to the matters described below).

The directors may suspend registration of transfers from time to time, not exceeding 30 days in aggregate each year.

Preference Shares

In accordance with the articles of association of the Company and subject to the specified threshold referred to under “Authorized Share Capital”, the directors of the Company may from time to time authorize the Company to issue serial preferred shares and to determine, without shareholder approval, certain terms of each series of the serial preferred shares issued by the Company, including the number of shares, designations, dividend rights, liquidation and other rights, and redemption, repurchase, or exchange rights. The holders of the serial preferred shares are entitled to a quarterly dividend at a rate to be determined by the board of directors. The holders of the serial preferred shares are entitled to any payments of dividends in preference to the dividend rights of any other class of shares in the Company. The holders of serial preferred shares are also entitled to one vote for each serial preferred share, and such holders vote together with the holders of ordinary shares as one class on all matters. In certain circumstances, the serial preferred shares are entitled to elect two members of the board.

The holders of the A preferred shares are entitled in priority to any payments of dividends on any other class of shares in the Company to be paid a dividend in an amount per A preferred share equal to twice of the dividend to be paid per ordinary share and in addition on a return of assets, whether on liquidation or otherwise, the A preferred shares entitle the holders to repayment of the capital paid up on those shares (including any share premium) in priority to any repayment of capital to the holder(s) of any other shares. The holders of the A preferred shares are not entitled to any further participation in the assets or profits of the Company nor are the holders of the A preferred shares entitled to receive notice of, nor to attend, speak, or vote at any general meeting of the Company.

The holders of preferred shares in particular may have the right to priority in a dissolution or winding up of the Company.

9

Exhibit 4.1

Anti-Takeover Provisions

Irish law contains provisions that would make a change in control of the Company more difficult or discourage a tender offer or other plans to restructure the Company. The following discussion of these provisions is qualified in its entirety by reference to those particular provisions of Irish law.

Irish Takeover Rules and Substantial Acquisition Rules

A transaction in which a third party seeks to acquire 30% or more of the voting rights of the Company will be governed by the Irish Takeover Panel Act 1997 and the Irish Takeover Rules made thereunder and will be regulated by the Irish Takeover Panel. The “General Principles” of the Irish Takeover Rules and certain important aspects of the Irish Takeover Rules are described below.

General Principles

The Irish Takeover Rules are built on the following General Principles which will apply to any transaction regulated by the Irish Takeover Panel:

• in the event of an offer, all holders of security of the target company should be afforded equivalent treatment and, if a person acquires control of a company, the other holders of securities must be protected;

• the holders of the securities in the target company must have sufficient time and information to enable them to reach a properly informed decision on the offer; where it advises the holders of securities, the board of the target company must give its views on the effects of implementation of the offer on employment, conditions of employment and the locations of the target company's places of business;

• the board of the target company must act in the interests of the company as a whole and must not deny the holders of securities the opportunity to decide on the merits of the offer;

• false markets must not be created in the securities of the target company, the bidder or of any other company concerned by the offer in such a way that the rise or fall of the prices of the securities becomes artificial and the normal functioning of the markets is distorted;

• a bidder must announce an offer only after ensuring that he or she can fulfill in full, any cash consideration, if such is offered, and after taking all reasonable measures to secure the implementation of any other type of consideration;

• a target company must not be hindered in the conduct of its affairs for longer than is reasonable by an offer for its securities; and

• a substantial acquisition of securities (whether such acquisition is to be effected by one transaction or a series of transactions) shall take place only at an acceptable speed and shall be subject to adequate and timely disclosure.

Mandatory Bid

Under certain circumstances, a person who acquires shares or other voting rights in the Company may be required under the Irish Takeover Rules to make a mandatory cash offer for the remaining outstanding shares in the Company at a price not less than the highest price paid for the shares by the acquirer (or any parties acting in concert with the acquirer) during the previous 12 months. This mandatory bid requirement is triggered if an acquisition of shares would increase the aggregate holding of an acquirer (including the holdings of any parties acting in concert with the acquirer) to shares representing 30% or more of the voting rights in the Company, unless the Irish Takeover Panel otherwise consents. An acquisition of shares by a person holding (together with its concert parties) shares representing between 30% and 50% of the voting rights in the Company would also trigger the mandatory bid requirement if, after giving effect to the acquisition, the percentage of the voting rights held by that person (together with its concert parties) would increase by 0.05% within a 12-month period. Any person (excluding any parties acting in concert with the holder) holding shares representing more than 50% of the voting rights of a company is not subject to these mandatory offer requirements in purchasing additional securities.

Voluntary Bid; Requirements to Make a Cash Offer and Minimum Price Requirements

If a person makes a voluntary offer to acquire outstanding ordinary shares of the Company, the offer price must be no less than the highest price paid for the Company ordinary shares by the bidder or its concert parties during the three-month period prior to the commencement of the offer period. The Irish Takeover Panel has the power to extend the “look back” period to 12 months if the Irish Takeover Panel, taking into account the General Principles, believes it is appropriate to do so.

10

Exhibit 4.1

If the bidder or any of its concert parties has acquired ordinary shares of the Company (i) during the period of 12 months prior to the commencement of the offer period which represent more than 10% of the total ordinary shares of the Company or (ii) at any time after the commencement of the offer period, the offer must be in cash (or accompanied by a full cash alternative) and the price per the Company’s ordinary share must not be less than the highest price paid by the bidder or its concert parties during, in the case of (i), the 12-month period prior to the commencement of the offer period and, in the case of (ii), the offer period. The Irish Takeover Panel may apply this rule to a bidder who, together with its concert parties, has acquired less than 10% of the total ordinary shares of the Company in the 12-month period prior to the commencement of the offer period if the Irish Takeover Panel, taking into account the General Principles, considers it just and proper to do so.

An offer period will generally commence from the date of the first announcement of the offer or proposed offer.

Substantial Acquisition Rules

The Irish Takeover Rules also contain rules governing substantial acquisitions of shares which restrict the speed at which a person may increase his or her holding of shares and rights over shares to an aggregate of between 15% and 30% of the voting rights of the Company. Except in certain circumstances, an acquisition or series of acquisitions of shares or rights over shares representing 10% or more of the voting rights of the Company is prohibited, if such acquisition(s), when aggregated with shares or rights already held, would result in the acquirer holding 15% or more but less than 30% of the voting rights of the Company and such acquisitions are made within a period of seven days. These rules also require accelerated disclosure of acquisitions of shares or rights over shares relating to such holdings.

Frustrating Action

Under the Irish Takeover Rules, the Company’s board of directors is not permitted to take any action which might frustrate an offer for the shares of the Company once the board of directors has received an approach which may lead to an offer or has reason to believe an offer is imminent, subject to certain exceptions. Potentially frustrating actions such as (i) the issue of shares, options or convertible securities, (ii) material acquisitions or disposals, (iii) entering into contracts other than in the ordinary course of business, or (iv) any action, other than seeking alternative offers, which may result in frustration of an offer, are prohibited during the course of an offer or at any time during which the board has reason to believe an offer is imminent. Exceptions to this prohibition are available where:

• the action is approved by the Company’s shareholders at a general meeting; or

• the Irish Takeover Panel has given its consent, where:

• it is satisfied the action would not constitute frustrating action;

• the Company’s shareholders that hold 50% of the voting rights state in writing that they approve the proposed action and would vote in favor of it at a general meeting;

• the action is taken in accordance with a contract entered into prior to the announcement of the offer; or

• the decision to take such action was made before the announcement of the offer and either has been at least partially implemented or is in the ordinary course of business.

Other Provisions

Certain other provisions of Irish law and the Company’s memorandum and articles of association may be considered to have anti-takeover effects, including provisions that:

• Allow the Company’s board of directors to issue preference shares without shareholder approval, with such rights, preferences and privileges as the board of directors may designate (see “Preference Shares”);

• Permit holders of not less than 10% of the total voting rights of the Company to requisition an extraordinary meeting for various purposes, including considering director nominations (see “Description of Ordinary Shares-Extraordinary General Meetings of Shareholders”);

• Establish advance notice procedures for shareholders to submit shareholder proposals or to submit nominations of candidates for election to the Company’s board of directors;

• Permit the board of directors to fill any vacancy occurring on the board of directors (see “Description of Ordinary Shares-Removal of Directors”);

• Authorize the board of directors to adopt a shareholder rights plan upon such terms and conditions as the board deems expedient and in the best interests of the Company;

11

Exhibit 4.1

• Impose particular approval and other requirements in relation to certain business combinations (see “Description of Ordinary Shares-Acquisitions”);

• Grant statutory preemption rights to shareholders when shares are being issued for cash consideration unless the Company “opts out” of these rights in its articles of association (see “Description of Ordinary Shares-Preemption Rights, Share Warrants and Share Options”);

• Impose notification requirements on shareholders who acquire or cease to be interested in a specified percentage of the Company’s shares (see “Description of Ordinary Shares-Disclosure of Interests in Shares”); and

• Provide that the Company may only alter its memorandum and articles of association by the passing of a special resolution of shareholders.

These provisions of Irish law and the Company’s memorandum and articles of association may delay or discourage transactions involving an actual or potential change in control of the Company or change in the board of directors or management, including transactions in which shareholders might otherwise receive a premium for their shares or transactions that shareholders might otherwise deem to be in their best interests.

Authorized and Unissued Shares

Shares of the Company are available for future issuance at the discretion of the board of directors without shareholder approval except as may otherwise be required by Irish law and subject to limitations set forth in the memorandum and articles of association. The future issuance of additional shares may, among other things, dilute the earnings per share of the Company’s outstanding shares and the equity and voting rights of those holding shares of the Company at the time the additional shares are issued.

The issuance of additional preference shares of the Company could have certain anti-takeover effects under certain circumstances, and could enable the board of directors to render more difficult or discourage an attempt to obtain control of the Company by means of a merger, tender offer, or other business combination transaction directed at the Company by, among other things, placing preference shares with investors who might align themselves with the board of directors.

12

EX-21

Eaton Corporation plc

2019 Annual Report on Form 10-K

Item 15(b)

Exhibit 21

Subsidiaries of Eaton Corporation plc

Eaton is publicly held and has no parent corporation. Eaton’s subsidiaries as of December 31, 2019, and the state or country in which each was organized, are as follows:

Consolidated Subsidiaries (A)	Where Organized
Illumination Management Solutions, Inc.	California
Joslyn Sunbank Company, LLC	California
Souriau USA Inc	California
Sunbank Family of Companies LLC	California
Innovative Switchgear IP LLC	Colorado
Innovative Switchgear Solutions, Inc	Colorado
Bussmann International Holdings, LLC	Delaware
Bussmann International, Inc.	Delaware
CBE Services, Inc.	Delaware
Cooper B-Line, Inc.	Delaware
Cooper Bussmann, LLC	Delaware
Cooper Crouse-Hinds MTL, Inc.	Delaware
Cooper Crouse-Hinds, LLC	Delaware
Cooper Electrical International, LLC	Delaware
Cooper Enterprises LLC	Delaware
Cooper Finance USA, Inc.	Delaware
Cooper Industries International, LLC	Delaware
Cooper Industries Poland, LLC	Delaware
Cooper Industries Vietnam, LLC	Delaware
Cooper Industries, LLC	Delaware
Cooper Interconnect, Inc.	Delaware
Cooper Lighting, LLC	Delaware
Cooper Notification, Inc.	Delaware
Cooper Power Systems, LLC	Delaware
Cooper Technologies Company	Delaware
Eaton Aerospace LLC	Delaware
Eaton Automated Transmission Technologies Corporation	Delaware
Eaton Electric Holdings LLC	Delaware
Eaton Hydraulics LLC	Delaware
Eaton Industries Middle East, LLC	Delaware
Eaton Industries (Philippines), LLC	Delaware
Eaton Industries XVI LLC	Delaware
McGraw-Edison Development Corporation	Delaware
MTL Instruments LLC	Delaware
MTL Partners II, Inc.	Delaware
MTL Partners, Inc.	Delaware
Standard Automation & Control LP	Delaware
Wright Line Holding, Inc.	Delaware
Wright Line LLC	Delaware
Azonix Corporation	Massachusetts
Eaton Ann Arbor LLC	Michigan
Cannon Technologies, Inc.	Minnesota

Consolidated Subsidiaries (A)	Where Organized
Cooper Wheelock, Inc.	New Jersey
Cooper Wiring Devices, Inc.	New York
Chagrin Highlands III Limited	Ohio
CLS Holdings LLC	Ohio
Eaton Aeroquip LLC	Ohio
Eaton Corporation	Ohio
Eaton Holding LLC	Ohio
Eaton Leasing Corporation	Ohio
Sure Power, Inc.	Oregon
Eaton Industries IX LLC	Texas
Eaton Industries VIII LLC	Texas
Eaton Industries (Argentina) S.A.	Argentina
Eaton Industries Pty. Ltd.	Australia
CTI-VIENNA Gesellschaft zur Prüfung elektrotechnischer Industrieprodukte GmbH	Austria
Eaton Holding (Austria) G.m.b.H.	Austria
Eaton Holding G.m.b.H.	Austria
Eaton Industries (Austria) G.m.b.H.	Austria
Eaton Holding SRL	Barbados
Eaton Electric SPRL	Belgium
Eaton Filtration BVBA	Belgium
Eaton Industries (Belgium) BVBA	Belgium
Cooper Bermuda Investments Ltd.	Bermuda Islands
Cooper Finance Group Ltd.	Bermuda Islands
Cooper Investment Group Ltd.	Bermuda Islands
Eaton Industries Holdings Ltd.	Bermuda Islands
Saturn Insurance Company Ltd.	Bermuda Islands
Aeroquip do Brasil Ltda.	Brazil
Blinda Industria e Comercio Ltda.	Brazil
Bussmann do Brasil Ltda.	Brazil
Cooper Power Systems do Brasil Ltda.	Brazil
Eaton Ltda.	Brazil
Eaton Power Solution Ltda.	Brazil
Moeller Electric Ltda.	Brazil
Moeller Industria de electro-electronicos do Amazonas Ltda.	Brazil
Digital Lighting Holdings Limited	British Virgin Islands
Nittan BVI Co. Ltd.	British Virgin Islands
Phoenixtec International Corp.	British Virgin Islands
Senyuan International Investments Limited	British Virgin Islands
Silver Light International Limited	British Virgin Islands
Winner Hydraulics Ltd.	British Virgin Islands
Eaton Industries EOOD	Bulgaria
Aeroquip-Vickers Canada Company	Canada
CLS (Canada) Company	Canada
Cooper Industries (Canada) Company	Canada
Cooper Industries (Electrical) Inc.	Canada
Cyme International T & D Inc.	Canada
Eaton Industries (Canada) Company	Canada
Cutler-Hammer Electrical Company	Cayman Islands
Cutler-Hammer Industries Ltd.	Cayman Islands

Consolidated Subsidiaries (A)	Where Organized
Georgetown Financial Services Ltd.	Cayman Islands
Senyuan International Holdings Limited	Cayman Islands
Eaton Industries (Chile) S.p.A.	Chile
Beijing Yoosung Shinhwa Automobile Parts Co., Ltd.	China
Cooper (China) Co., Ltd.	China
Cooper (Ningbo) Electric Co., Ltd.	China
Cooper Edison (Pingdingshan) Electronic Technologies Co., Ltd.	China
Cooper Electric (Changzhou) Co., Ltd.	China
Cooper Electric (Shanghai) Co., Ltd.	China
Cooper Electronic Technologies (Shanghai) Co., Ltd.	China
Cooper Shanghai Power Capacitor Co., Ltd.	China
Cooper Xi'an Fusegear Co., Ltd.	China
Cooper Yuhua (Changzhou) Electric Equipment Manufacturing Co., Ltd.	China
Digital Lighting (Dong Guan) Co., Ltd.	China
Dongguan Cooper Electronics Co. Ltd.	China
Dongguan Wiring Devices Electronics Co., Ltd.	China
Eaton (China) Investments Co., Ltd.	China
Eaton Electrical Equipment Co Ltd	China
Eaton Electrical Ltd.	China
Eaton Filtration (Shanghai) Co. Ltd.	China
Eaton Fluid Power (Shanghai) Co., Ltd.	China
Eaton Fu Li An (Changzhou) Electronics Co., Ltd.	China
Eaton Hydraulics (Luzhou) Co., Ltd.	China
Eaton Hydraulics (Ningbo) Co., Ltd.	China
Eaton Hydraulics Systems (Jining) Co., Ltd.	China
Eaton Industrial Clutches and Brakes (Shanghai) Co., Ltd.	China
Eaton Industries (Jining) Co., Ltd	China
Eaton Industries (Shanghai) Co., Ltd	China
Eaton Industries (Wuxi) Co., Ltd.	China
Eaton Power (Shanghai) Trading Limited Partnership	China
Eaton Power Quality (Shanghai) Co., Ltd.	China
Guangzhou Nittan Valve Co. Ltd.	China
Kaicheng Funke+Huster (Tangshan) Mining Electrical Co. Ltd.	China
Lian Zheng Electronics (Shenzhen) Co., Ltd.	China
Moeller Electric (Shanghai) Co., Ltd.	China
Phoenixtec Electronics (Shenzhen) Co., Ltd.	China
Rizhao Yoosung Shinhwa Automobile Parts Co., Ltd.	China
Santak Electronic (Shenzhen) Co., Ltd.	China
Cooper Industries Colombia S.A.S.	Colombia
Eaton Industries (Colombia) S.A.S.	Colombia
Eaton Electrical Srl	Costa Rica
Eaton Electric s.r.o.	Czech Republic
Eaton Elektrotechnika s.r.o.	Czech Republic
Eaton Electric ApS	Denmark
Eaton Filtration (Denmark) ApS	Denmark
Cutler-Hammer, SRL	Dominican Republic
Souriau Dominican Republic Ltd	Dominican Republic
Eaton Industries (Egypt) LLC	Egypt
Eaton Power Quality OY (Finland)	Finland

Consolidated Subsidiaries (A)	Where Organized
CLS (France) SAS	France
Cooper Capri S.A.S.	France
Cooper Menvier France SARL	France
Cooper Securite S.A.S.	France
Eaton France Holding SAS	France
Eaton Industries (France) S.A.S.	France
Eaton S.A.S.	France
Martek Power F SAS	France
MP Group SAS	France
MTL Instruments SARL	France
Sefelec SAS	France
Souriau S.A.S.	France
Technocontact	France
CEAG Notlichtsysteme GmbH	Germany
Cooper Crouse-Hinds GmbH	Germany
Cooper Germany Holdings GmbH	Germany
Cooper Industries Finanzierungs-GbR	Germany
Eaton Electric G.m.b.H.	Germany
Eaton Electrical IP G.m.b.H. & Co. KG	Germany
Eaton Germany G.m.b.H.	Germany
Eaton Germany Holdings GmbH	Germany
Eaton GmbH & Co. KG	Germany
Eaton Holding SE & Co. KG	Germany
Eaton Industries G.m.b.H.	Germany
Eaton Industries Holding G.m.b.H.	Germany
Eaton Production International G.m.b.H.	Germany
Eaton Protection Systems IP G.m.b.H. & Co. KG	Germany
Eaton SE	Germany
Eaton Technologies G.m.b.H.	Germany
FHF Bergbautechnik GmbH & Co. KG	Germany
FHF Funke+Huster Fernsig GmbH	Germany
FHF New World GmbH	Germany
Funke+Huster GmbH	Germany
GeCma Components electronic GmbH	Germany
Hein Moeller Stiftung G.m.b.H.	Germany
Institute for International Product Safety G.m.b.H.	Germany
Martek Power GmbH	Germany
MTL Instruments GmbH	Germany
Sefelec GmbH	Germany
Souriau Germany GmbH	Germany
Cooper Univel S.A.	Greece
Digital Lighting Co., Limited	Hong Kong
Eaton Electric & Engineering Services Limited	Hong Kong
Eaton Enterprises Limited	Hong Kong
Eaton Power Quality Limited	Hong Kong
Riseson International Limited	Hong Kong
Santak Electronics Company Limited	Hong Kong
Scoremax Limited	Hong Kong
Silver Victory Hong Kong Limited	Hong Kong

Consolidated Subsidiaries (A)	Where Organized
Vickers Systems Limited	Hong Kong
Eaton Enterprises (Hungary) Kft.	Hungary
Eaton Industries KFT	Hungary
Eaton Manufacturing Hungary Kft.	Hungary
Eaton Fluid Power Limited	India
Eaton India Innovation Center LLP	India
Eaton Industrial Products Pvt. Ltd.	India
Eaton Industrial Systems Private Limited	India
Eaton Management Services LLP	India
Eaton Power Quality Private Limited	India
Eaton Technologies Private Limited	India
MTL Instruments Private Limited	India
Souriau India Pvt Ltd	India
PT Eaton Industries	Indonesia
PT Eaton Industries	Indonesia
PT Ulusoy Electric Indonesia	Indonesia
PT Ulusoy Electric Industry	Indonesia
PT. Fluid Sciences Batam	Indonesia
Abeiron III Unlimited Company	Ireland
Cooper Industries Trading Unlimited Company	Ireland
Cooper Industries Unlimited Company	Ireland
Eaton Capital Global Holdings Unlimited Company	Ireland
Eaton Capital Unlimited Co	Ireland
Eaton Domhanda I Unlimited Company	Ireland
Eaton Domhanda Unlimited Company	Ireland
Eaton Industries (Ireland) II Limited	Ireland
Eaton Industries (Ireland) Limited	Ireland
Eaton Industries I Unlimited Company	Ireland
Eaton Industries II Unlimited Company	Ireland
Eaton Industries III Unlimited Company	Ireland
Eaton Industries IV Unlimited Company	Ireland
Eaton Industries V Unlimited Company	Ireland
Eaton Industries VI Unlimited Company	Ireland
Eaton Industries VII Unlimited Company	Ireland
Eaton Industries X Unlimited Company	Ireland
Eaton Industries XI Unlimited Company	Ireland
Eaton Industries XII Unlimited Company	Ireland
Eaton Industries XIII Unlimited Company	Ireland
Eaton Industries XIV Unlimited Company	Ireland
Eaton Industries XIX Unlimited Company	Ireland
Eaton Industries XV Unlimited Company	Ireland
Eaton Industries XVIII Unlimited Company	Ireland
Eaton Industries XX Unlimited Company	Ireland
Eaton Intelligent Power Limited	Ireland
Eaton Manufacturing Limited	Ireland
Eaton Teorainn Unlimited Company	Ireland
Plumtree I Limited	Ireland
TT (Ireland) Acquisition Limited	Ireland
Eaton Global Holdings II Limited	Isle of Man

Consolidated Subsidiaries (A)	Where Organized
Eaton Global Holdings Limited	Isle of Man
Eaton Global Limited	Isle of Man
Eaton Industries (Israel) Ltd.	Israel
Cooper Csa Srl	Italy
Eaton Filtration (Italy) S.r.l.	Italy
Eaton Fluid Power S.r.l.	Italy
Eaton Industries (Italy) S.r.l.	Italy
Eaton S.r.l.	Italy
Gitiesse S.r.l.	Italy
MTL Italia Srl	Italy
Souriau Italy Srl	Italy
Cooper Industries Japan K.K.	Japan
Eaton Electric (Japan) Ltd.	Japan
Eaton Filtration Ltd.	Japan
Eaton Industries (Japan) Ltd.	Japan
Eaton Japan G.K.	Japan
Souriau Japan KK	Japan
Cooper Korea Ltd.	Korea
Eaton Industries (Korea) Limited	Korea
Eaton Electric S.I.A.	Latvia
Aeroquip-Vickers International S.a.r.L.	Luxembourg
Cambridge International Sarl	Luxembourg
Cooper International Holdings S.a.r.l	Luxembourg
Cooper Investment Group S a.r.l.	Luxembourg
Cooper Offshore Holdings S.a.r.l. (Luxembourg)	Luxembourg
Eaton Controls (Luxembourg) S.a.r.l.	Luxembourg
Eaton Holding II S.a.r.l.	Luxembourg
Eaton Holding IV S.a.r.l.	Luxembourg
Eaton Holding IX S.a.r.l.	Luxembourg
Eaton Holding S.a.r.l.	Luxembourg
Eaton Holding V S.a.r.l.	Luxembourg
Eaton Holding VIII S.a.r.l.	Luxembourg
Eaton Holding XIII S.a.r.l.	Luxembourg
Eaton Moeller S.a.r.l.	Luxembourg
Eaton Services S.a.r.L.	Luxembourg
Eaton Technologies (Luxembourg) S.a.r.l.	Luxembourg
Green Holding S.a.r.l.	Luxembourg
Martek Power SA	Luxembourg
Cooper Industries Malaysia SDN BHD	Malaysia
Eaton Industries Sdn. Bhd.	Malaysia
ETN Asia International Limited	Mauritius
ETN Holding 1 Limited	Mauritius
ETN Holding 2 Limited	Mauritius
ETN Holding 3 Limited	Mauritius
Plumtree Mauritius Limited	Mauritius
Arrow-Hart, S. de R.L. de C.V.	Mexico
Bussmann, S. de R.L. de C.V.	Mexico
CL Solutions mexico, S. de R.L. de C.V.	Mexico
Componentes de Iluminacion, S. de R.L. de C.V.	Mexico

Consolidated Subsidiaries (A)	Where Organized
Cooper Crouse-Hinds, S. de R.L. de C.V.	Mexico
Cooper Lighting de Mexico, S. de R.L. de C.V.	Mexico
Cooper Mexico Distribucion, S. de R.L. de C.V.	Mexico
Cooper Wiring Devices de Mexico, S.A. de C.V.	Mexico
Cooper Wiring Devices Manufacturing, S. de R.L. de C.V.	Mexico
Eaton Controls, S. de R.L. de C.V.	Mexico
Eaton Enterprises, S. de R.L. de C.V.	Mexico
Eaton Industries, S. de R.L. de C.V.	Mexico
Eaton Solutions, S. de R.L. de C.V.	Mexico
Eaton Technologies, S. de R.L. de C.V.	Mexico
Eaton Truck Components, S. de R.L. de C.V.	Mexico
Electromanufacturas, S. de R.L. de C.V.	Mexico
Iluminacion Cooper de las Californias, S. de R.L. de C.V.	Mexico
Martek Power S.A. de C.V.	Mexico
Sunbank De Mexico S de R.L. de C.V Mexico	Mexico
Eaton Electric S.a.r.l.	Morocco
Eaton Industries (Morocco) LLC	Morocco
Souriau MAROC Sarl	Morocco
Cooper Crouse-Hinds B.V.	Netherlands
Cooper Industries Finance B.V.	Netherlands
Cooper Industries Global B.V.	Netherlands
Cooper Safety B.V.	Netherlands
Eaton B.V.	Netherlands
Eaton Holding (Netherlands) B.V.	Netherlands
Eaton Holding I B.V.	Netherlands
Eaton Holding III B.V.	Netherlands
Eaton Holding Turlock B.V.	Netherlands
Eaton Holding V B.V.	Netherlands
Eaton Holding VI B.V.	Netherlands
Eaton Holding VII B.V.	Netherlands
Eaton Holding VIII B.V.	Netherlands
Eaton Industries (Netherlands) B.V.	Netherlands
Eaton International B.V.	Netherlands
Eaton Moeller B.V.	Netherlands
MTL Instruments B.V.	Netherlands
Scantronic Benelux BV	Netherlands
Turlock B.V.	Netherlands
Eaton Industries Company	New Zealand
Eaton International Industries Nigeria Limited	Nigeria
Cooper Crouse-Hinds AS	Norway
Eaton Electric AS	Norway
Hernis Scan Systems A/S	Norway
Norex AS	Norway
Eaton Trading (FZC) LLC	Oman
Eaton Industries Panama S.A.	Panama
Eaton Industries SAC	Peru
Eaton Automotive Components Spolka z o.o.	Poland
Eaton Automotive Spolka z o.o.	Poland
Eaton Automotive Systems Spolka z o.o.	Poland

Consolidated Subsidiaries (A)	Where Organized
Eaton Electric Spolka z.o.o.	Poland
Eaton Filtration (Poland) Sp. z o.o.	Poland
Eaton I Spolka z.o.o.	Poland
Eaton Truck Components Spolka z o.o.	Poland
Cooper Pretronica Unipessoal Lda.	Portugal
Eaton Madeira SGPS Lda.	Portugal
Cooper Industries Romania SRL	Romania
Eaton Electric S.r.l.	Romania
Eaton Electro Productie S.r.l.	Romania
Cooper Industries Russia LLC	Russia
Eaton LLC	Russia
Eaton II LP	Scotland
Eaton III LP	Scotland
Eaton Industries LP	Scotland
Eaton IV LP	Scotland
Eaton LP	Scotland
Eaton Manufacturing LP	Scotland
Eaton Electric d.o.o.	Serbia
Eaton Electric (Singapore) Pte. Ltd.	Singapore
Eaton Industries Pte. Ltd.	Singapore
Eaton Electric s.r.o.	Slovak Republic
Eaton Electric (South Africa) Pty Ltd.	South Africa
Eaton Hydraulics (Proprietary) Limited	South Africa
Eaton Truck Components (Proprietary) Ltd.	South Africa
Aeroquip Iberica S.L.	Spain
Cooper Crouse-Hinds, S.A.	Spain
Eaton Industries (Spain) S.L.	Spain
Productos Eaton Livia S.L.	Spain
Eaton Electric AB	Sweden
Ultronics Nordic Sales AB	Sweden
Eaton Automation G.m.b.H	Switzerland
Eaton Automation Holding G.m.b.H.	Switzerland
Eaton Industries II G.m.b.H.	Switzerland
Eaton Industries Manufacturing G.m.b.H.	Switzerland
Eaton Manufacturing G.m.b.H.	Switzerland
Eaton Manufacturing II G.m.b.H.	Switzerland
Eaton Manufacturing III G.m.b.H.	Switzerland
Eaton Switzerland Holding I GmbH	Switzerland
Eaton Switzerland Holding II GmbH	Switzerland
Eaton Phoenixtec MMPL Co. Ltd.	Taiwan
RTE Far East Corporation	Taiwan
Eaton Electric (Thailand) Ltd	Thailand
Eaton Industries (Thailand) Ltd.	Thailand
Eaton Electric Company Ltd.	Thailand
Eaton Elektrik Ticaret Limited Sirketi	Turkey
Polimer Kaucuk Sanayi ve Pazarlama A.S.	Turkey
Ulusoy Elektrik Imalat Taahhut ve Ticaret AS	Turkey
D.P. Eaton Electric	Ukraine
Cooper Crouse-Hinds (LLC)	United Arab Emirates

Consolidated Subsidiaries (A)	Where Organized
Cooper Industries FZE	United Arab Emirates
Eaton FZE	United Arab Emirates
CLS Industries (UK) Limited	United Kingdom
Cooper Industries UK Subco Limited	United Kingdom
Eaton Controls (UK) Limited	United Kingdom
Eaton Electric Limited	United Kingdom
Eaton Electrical Products Limited	United Kingdom
Eaton Electrical Systems Limited	United Kingdom
Eaton Holding (UK) II Limited	United Kingdom
Eaton Holding Limited	United Kingdom
Eaton Industries (England) Limited	United Kingdom
Eaton Industries (U.K.) Limited	United Kingdom
Eaton Limited	United Kingdom
Eaton MEDC Limited	United Kingdom
Menvier Overseas Holdings Limited	United Kingdom
Scantronic Holdings Limited	United Kingdom
Souriau UK Ltd	United Kingdom
The MTL Instruments Group Limited	United Kingdom
Eaton Electrical, S.A.	Venezuela
(A) Other Eaton subsidiaries, many inactive, are not listed above. If considered in the aggregate, they would not be material.

EX-23

Eaton Corporation plc

2019 Annual Report on Form 10-K

Item 15(b)

Exhibit 23

Consent of Independent Registered Public Accounting Firm

We consent to the incorporation by reference in the following Registration Statements of our reports dated February 26, 2020, with respect to the consolidated financial statements of Eaton Corporation plc and the effectiveness of internal control over financial reporting of Eaton Corporation plc included in this Annual Report (Form 10-K) of Eaton Corporation plc for the year ended December 31, 2019:

Registration number	Description	Filing date
333-223296	Form S-3 Registration Statement	February 28, 2018
333-207689	Form S-8 Registration Statement-2015 Stock Plan	October 30, 2015
333-202308	Form S-3 Registration Statement	February 26, 2015
333-185206	Multiple plans - Form S-8 Registration Statement	November 30, 2012
	Amended and Restated 2012 Stock Plan
	Second Amended and Restated 2009 Stock Plan
	Amended and Restated 2008 Stock Plan
	Amended and Restated 2004 Stock Plan
	Amended and Restated 2002 Stock Plan
	Amended and Restated 1998 Stock Plan
	Amended and Restated 1995 Stock Plan
	Eaton Incentive Compensation Deferral Plan II
	Eaton Corporation Deferred Incentive Compensation Plan II
	2005 Non-Employee Director Fee Deferral Plan
	Eaton Savings Plan
	Eaton Personal Investment Plan
	Eaton Puerto Rico Retirement Savings Plan
	Cooper Retirement Savings and Stock Ownership Plan

/s/ Ernst & Young LLP

Cleveland, Ohio

February 26, 2020

EX-24

Eaton Corporation plc

2019 Annual Report on Form 10-K

Item 15(b)

Exhibit 24

Power of Attorney

KNOW ALL MEN BY THESE PRESENTS: That each person whose name is signed below has made, constituted and appointed, and by this instrument does make, constitute and appoint Richard H. Fearon, Ken D. Semelsberger or James P. Even his or her true and lawful attorney and agent, for him or her and in his or her name, place and stead to execute and subscribe, as attorney-in-fact, his or her signature as Director or Officer or both, as the case may be, of Eaton Corporation plc, to its Annual Report on Form 10-K for the year ended December 31, 2019 pursuant to the Securities Exchange Act of 1934, and to any and all amendments to that Annual Report, hereby giving and granting unto each such attorney-in-fact full power and authority to do and perform every act and thing whatsoever necessary to be done in the premises, including to file the Annual Report on Form 10-K with the Securities and Exchange Commission, as fully as he or she might or could do if personally present, hereby ratifying and confirming all that each such attorney-in-fact shall lawfully do or cause to be done by virtue hereof.

This Power of Attorney shall not apply to any Annual Report on Form 10-K or amendment thereto filed after December 31, 2020.

IN WITNESS WHEREOF, this Power of Attorney has been signed at Dublin, Ireland this 25th day of February, 2020.

/s/ Craig Arnold	/s/ Richard H. Fearon
Craig Arnold, Chairman; Principal Executive Officer; Director	Richard H. Fearon, Principal Financial Officer; Director
	/s/ Todd M. Bluedorn
Ken D. Semelsberger, Principal Accounting Officer	Todd M. Bluedorn, Director
/s/ Christopher M. Connor	/s/ Michael J. Critelli
Christopher M. Connor, Director	Michael J. Critelli, Director
/s/ Olivier Leonetti	/s/ Deborah L. McCoy
Olivier Leonetti, Director	Deborah L. McCoy, Director
/s/ Silvio Napoli
Silvio Napoli, Director	Gregory R. Page, Director
/s/ Sandra Pianalto	/s/ Gerald B. Smith
Sandra Pianalto, Director	Gerald B. Smith, Director
/s/ Dorothy C. Thompson
Dorothy C. Thompson, Director

EX-31.1

Eaton Corporation plc

2019 Annual Report on Form 10-K

Item 15(b)

Exhibit 31.1

Certification

I, Craig Arnold, certify that:

1. I have reviewed this annual report on Form 10-K 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 (the registrant’s fourth fiscal quarter in the case of an annual report) 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 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:	February 26, 2020	/s/ Craig Arnold
		Craig Arnold
		Principal Executive Officer

EX-31.2

Eaton Corporation plc

2019 Annual Report on Form 10-K

Item 15(b)

Exhibit 31.2

Certification

I, Richard H. Fearon, certify that:

1. I have reviewed this annual report on Form 10-K 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 (the registrant’s fourth fiscal quarter in the case of an annual report) 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 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:	February 26, 2020	/s/ Richard H. Fearon
		Richard H. Fearon
		Principal Financial Officer

EX-32.1

Eaton Corporation plc

2019 Annual Report on Form 10-K

Item 15(b)

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 Annual Report on Form 10-K for the year ended December 31, 2019 (“10-K Report”).

I hereby certify that, based on my knowledge, the Report on Form 10-K 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-K Report fairly presents, in all material respects, the financial condition and results of operations of Eaton Corporation plc and its consolidated subsidiaries.

Date:	February 26, 2020	/s/ Craig Arnold
		Craig Arnold
		Principal Executive Officer

EX-32.2

Eaton Corporation plc

2019 Annual Report on Form 10-K

Item 15(b)

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 Annual Report on Form 10-K for the year ended December 31, 2019 (“10-K Report”).

I hereby certify that, based on my knowledge, the Report on Form 10-K 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-K Report fairly presents, in all material respects, the financial condition and results of operations of Eaton Corporation plc and its consolidated subsidiaries.

Date:	February 26, 2020	/s/ Richard H. Fearon
		Richard H. Fearon
		Principal Financial Officer

XML

Fair Value Measurements - Assets Measured on Recurring Basis (Details) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018
Summary of financial instruments recognized at fair value and fair value measurement used
Cash	$ 370	$ 283
Short-term investments	221	157
Net derivative contracts	53	14
Quoted prices in active markets for identical assets (Level 1) [Member]
Summary of financial instruments recognized at fair value and fair value measurement used
Cash	370	283
Short-term investments	221	157
Net derivative contracts	0	0
Other observable inputs (Level 2) [Member]
Summary of financial instruments recognized at fair value and fair value measurement used
Cash	0	0
Short-term investments	0	0
Net derivative contracts	53	14
Unobservable inputs (Level 3) [Member]
Summary of financial instruments recognized at fair value and fair value measurement used
Cash	0	0
Short-term investments	0	0
Net derivative contracts	$ 0	$ 0

XML

Equity-Based Compensation Performance Share Units - Market Based (Details) shares in Millions	12 Months Ended
	Dec. 31, 2019 $ / shares shares
Performance Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Non-vested at January 1 (shares) | shares	0.6
Granted (shares) | shares	0.3
Adjustment for performance results achieved | shares	0.1
Vested (shares) | shares	(0.3)
Forfeited (shares) | shares	(0.1)
Non-vested at December 31 (shares) | shares	0.6
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]
Non-vested at January 1 (usd per share) | $ / shares	$ 89.95
Granted (usd per share) | $ / shares	92.50
Adjustment for performance results achieved (usd per share) | $ / shares	80.07
Vested (usd per share) | $ / shares	80.07
Forfeited (usd per share) | $ / shares	90.91
Non-vested at December 31 (usd per share) | $ / shares	$ 96.14
Performance Share Unit [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Non-vested at January 1 (shares) | shares	0.1
Granted (shares) | shares	0.0
Vested (shares) | shares	(0.1)
Forfeited (shares) | shares	0.0
Non-vested at December 31 (shares) | shares	0.0
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]
Non-vested at January 1 (usd per share) | $ / shares	$ 56.55
Granted (usd per share) | $ / shares	0
Vested (usd per share) | $ / shares	56.55
Forfeited (usd per share) | $ / shares	0
Non-vested at December 31 (usd per share) | $ / shares	$ 0

XML

Condensed Consolidating Financial Statements (Tables)

12 Months Ended

Dec. 31, 2019

Condensed Financial Information Disclosure [Abstract]

Condensed Consolidating Financial Statements

CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME YEAR ENDED DECEMBER 31, 2019
	Eaton Corporation plc			Eaton Corporation			Guarantors			Other subsidiaries			Consolidating adjustments			Total
Net sales	$	—		$	7,322		$	6,995		$	12,101		$	(5,028	)	$	21,390
Cost of products sold	—			5,646			5,073			8,651			(5,032		)	14,338
Selling and administrative expense	11			1,480			780			1,312			—			3,583
Research and development expense	—			141			140			325			—			606
Interest expense (income) - net	—			248			19			(29		)	(2		)	236
Other expense (income) - net	(12		)	16			(8		)	40			—			36
Equity in loss (earnings) of    subsidiaries, net of tax	(2,423		)	(593		)	(2,492		)	(2,563		)	8,071			—
Intercompany expense (income) - net	213			1			520			(734		)	—			—
Income (loss) before income taxes	2,211			383			2,963			5,099			(8,065		)	2,591
Income tax expense (benefit)	—			3			135			239			1			378
Net income (loss)	2,211			380			2,828			4,860			(8,066		)	2,213
Less net loss (income) for    noncontrolling interests	—			—			—			(2		)	—			(2		)
Net income (loss) attributable to    Eaton ordinary shareholders	$	2,211		$	380		$	2,828		$	4,858		$	(8,066	)	$	2,211
Other comprehensive income (loss)	(145		)	(6		)	(109		)	(312		)	427			(145		)
Total comprehensive income (loss) attributable to Eaton    ordinary shareholders	$	2,066		$	374		$	2,719		$	4,546		$	(7,639	)	$	2,066

CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME YEAR ENDED DECEMBER 31, 2018
	Eaton Corporation plc			Eaton Corporation			Guarantors			Other subsidiaries			Consolidating adjustments			Total
Net sales	$	—		$	7,395		$	6,875		$	12,649		$	(5,310	)	$	21,609
Cost of products sold	—			5,805			5,012			9,011			(5,317		)	14,511
Selling and administrative expense	10			1,451			756			1,331			—			3,548
Research and development expense	—			151			146			287			—			584
Interest expense (income) - net	—			273			15			(18		)	1			271
Arbitration decision expense	—			—			275			—			—			275
Other expense (income) - net	(29		)	55			22			(52		)	—			(4		)
Equity in loss (earnings) of    subsidiaries, net of tax	(2,302		)	(716		)	(2,867		)	(2,338		)	8,223			—
Intercompany expense (income) - net	176			133			1,022			(1,331		)	—			—
Income (loss) before income taxes	2,145			243			2,494			5,759			(8,217		)	2,424
Income tax expense (benefit)	—			1			28			248			1			278
Net income (loss)	2,145			242			2,466			5,511			(8,218		)	2,146
Less net loss (income) for    noncontrolling interests	—			—			—			(1		)	—			(1		)
Net income (loss) attributable to    Eaton ordinary shareholders	$	2,145		$	242		$	2,466		$	5,510		$	(8,218	)	$	2,145
Other comprehensive income (loss)	(741		)	(162		)	(765		)	(1,565		)	2,492			(741		)
Total comprehensive income (loss) attributable to Eaton    ordinary shareholders	$	1,404		$	80		$	1,701		$	3,945		$	(5,726	)	$	1,404

CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME YEAR ENDED DECEMBER 31, 2017
	Eaton Corporation plc			Eaton Corporation			Guarantors			Other subsidiaries			Consolidating adjustments			Total
Net sales	$	—		$	6,900		$	6,563		$	12,358		$	(5,417	)	$	20,404
Cost of products sold	—			5,434			4,840			8,895			(5,413		)	13,756
Selling and administrative expense	11			1,387			768			1,360			—			3,526
Research and development expense	—			183			176			225			—			584
Interest expense (income) - net	—			244			20			(20		)	2			246
Gain on sale of business	—			561			—			516			—			1,077
Other expense (income) - net	79			48			(76		)	(50		)	—			1
Equity in loss (earnings) of    subsidiaries, net of tax	(3,644		)	(1,644		)	(5,063		)	(3,832		)	14,183			—
Intercompany expense (income) - net	569			(309		)	794			(1,054		)	—			—
Income (loss) before income taxes	2,985			2,118			5,104			7,350			(14,189		)	3,368
Income tax expense (benefit)	—			337			(52		)	99			(2		)	382
Net income (loss)	2,985			1,781			5,156			7,251			(14,187		)	2,986
Less net loss (income) for    noncontrolling interests	—			—			—			(3		)	2			(1		)
Net income (loss) attributable to    Eaton ordinary shareholders	$	2,985		$	1,781		$	5,156		$	7,248		$	(14,185	)	$	2,985
Other comprehensive income (loss)	1,044			104			1,021			2,252			(3,377		)	1,044
Total comprehensive income (loss) attributable to Eaton    ordinary shareholders	$	4,029		$	1,885		$	6,177		$	9,500		$	(17,562	)	$	4,029

CONDENSED CONSOLIDATING BALANCE SHEETS DECEMBER 31, 2019
	Eaton Corporation plc		Eaton Corporation		Guarantors		Other subsidiaries		Consolidating adjustments			Total
Assets
Current assets
Cash	$	—	$	27	$	—	$	343	$	—		$	370
Short-term investments	—		—		—		221		—			221
Accounts receivable - net	—		460		982		1,995		—			3,437
Intercompany accounts receivable	9		937		1,848		1,683		(4,477		)	—
Inventory	—		596		672		1,609		(72		)	2,805
Assets held for sale	—		—		1,211		166		—			1,377
Prepaid expenses and other    current assets	—		106		28		371		13			518
Total current assets	9		2,126		4,741		6,388		(4,536		)	8,728
Property, plant and equipment - net	—		854		563		2,079		—			3,496
Other noncurrent assets
Goodwill	—		1,742		5,839		5,875		—			13,456
Other intangible assets	—		302		2,406		1,930		—			4,638
Operating lease assets	—		173		31		232		—			436
Deferred income taxes	—		250		74		279		(231		)	372
Investment in subsidiaries	17,195		10,610		58,610		23,019		(109,434		)	—
Intercompany loans receivable	—		2,643		2,983		38,671		(44,297		)	—
Other assets	—		817		129		733		—			1,679
Total assets	$	17,204	$	19,517	$	75,376	$	79,206	$	(158,498	)	$	32,805
Liabilities and shareholders’    equity
Current liabilities
Short-term debt	$	—	$	255	$	—	$	—	$	—		$	255
Current portion of long-term debt	—		4		242		2		—			248
Accounts payable	—		529		340		1,245		—			2,114
Intercompany accounts payable	25		953		2,275		1,224		(4,477		)	—
Accrued compensation	—		113		58		278		—			449
Liabilities held for sale	—		—		232		93		—			325
Other current liabilities	1		531		400		809		—			1,741
Total current liabilities	26		2,385		3,547		3,651		(4,477		)	5,132
Noncurrent liabilities
Long-term debt	—		5,886		1,921		12		—			7,819
Pension liabilities	—		420		122		920		—			1,462
Other postretirement benefits    liabilities	—		172		80		76		—			328
Operating lease liabilities	—		128		21		182		—			331
Deferred income taxes	—		—		432		195		(231		)	396
Intercompany loans payable	1,096		5,120		36,000		2,081		(44,297		)	—
Other noncurrent liabilities	—		570		272		362		—			1,204
Total noncurrent liabilities	1,096		12,296		38,848		3,828		(44,528		)	11,540
Shareholders’ equity
Eaton shareholders’ equity	16,082		4,836		32,981		71,676		(109,493		)	16,082
Noncontrolling interests	—		—		—		51		—			51
Total equity	16,082		4,836		32,981		71,727		(109,493		)	16,133
Total liabilities and equity	$	17,204	$	19,517	$	75,376	$	79,206	$	(158,498	)	$	32,805

CONDENSED CONSOLIDATING BALANCE SHEETS DECEMBER 31, 2018
	Eaton Corporation plc		Eaton Corporation		Guarantors		Other subsidiaries		Consolidating adjustments			Total
Assets
Current assets
Cash	$	1	$	21	$	1	$	260	$	—		$	283
Short-term investments	—		—		—		157		—			157
Accounts receivable - net	—		501		1,381		1,976		—			3,858
Intercompany accounts receivable	—		2,457		1,877		2,159		(6,493		)	—
Inventory	—		592		714		1,555		(76		)	2,785
Prepaid expenses and other    current assets	—		109		29		355		14			507
Total current assets	1		3,680		4,002		6,462		(6,555		)	7,590
Property, plant and equipment - net	—		858		663		1,946		—			3,467
Other noncurrent assets
Goodwill	—		1,742		6,293		5,293		—			13,328
Other intangible assets	—		322		2,860		1,664		—			4,846
Deferred income taxes	—		252		134		287		(380		)	293
Investment in subsidiaries	16,476		13,101		68,196		32,625		(130,398		)	—
Intercompany loans receivable	1,508		2,208		8,406		39,757		(51,879		)	—
Other assets	—		758		115		695		—			1,568
Total assets	$	17,985	$	22,921	$	90,669	$	88,729	$	(189,212	)	$	31,092
Liabilities and shareholders’    equity
Current liabilities
Short-term debt	$	—	$	388	$	—	$	26	$	—		$	414
Current portion of long-term debt	—		338		—		1		—			339
Accounts payable	—		515		397		1,218		—			2,130
Intercompany accounts payable	32		1,718		2,864		1,879		(6,493		)	—
Accrued compensation	—		139		67		251		—			457
Other current liabilities	30		536		386		864		(2		)	1,814
Total current liabilities	62		3,634		3,714		4,239		(6,495		)	5,154
Noncurrent liabilities
Long-term debt	—		5,814		945		7		2			6,768
Pension liabilities	—		391		122		791		—			1,304
Other postretirement benefits    liabilities	—		168		81		72		—			321
Deferred income taxes	—		1		553		175		(380		)	349
Intercompany loans payable	1,816		7,681		39,552		2,830		(51,879		)	—
Other noncurrent liabilities	—		391		290		373		—			1,054
Total noncurrent liabilities	1,816		14,446		41,543		4,248		(52,257		)	9,796
Shareholders’ equity
Eaton shareholders’ equity	16,107		4,841		45,412		80,207		(130,460		)	16,107
Noncontrolling interests	—		—		—		35		—			35
Total equity	16,107		4,841		45,412		80,242		(130,460		)	16,142
Total liabilities and equity	$	17,985	$	22,921	$	90,669	$	88,729	$	(189,212	)	$	31,092

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS DECEMBER 31, 2019
	Eaton Corporation plc			Eaton Corporation			Guarantors			Other subsidiaries			Consolidating adjustments			Total
Net cash provided by (used in)    operating activities	$	(78	)	$	1,316		$	652		$	1,561		$	—		$	3,451
Investing activities
Capital expenditures for property,    plant and equipment	—			(101		)	(114		)	(372		)	—			(587		)
Cash paid for acquisitions of    businesses, net of cash acquired	—			(152		)	(30		)	(998		)	—			(1,180		)
Payments for sale of a business	—			—			—			(36		)	—			(36		)
Sales (purchases) of short-term investments - net	—			—			—			(70		)	—			(70		)
Loans to affiliates	—			(470		)	(811		)	(8,440		)	9,721			—
Repayments of loans from affiliates	—			841			—			6,830			(7,671		)	—
Proceeds from (payments for) settlement of currency exchange contracts not designated as hedges - net	—			3			—			51			—			54
Other - net	—			(32		)	29			(44		)	—			(47		)
Net cash provided by (used in)     investing activities	—			89			(926		)	(3,079		)	2,050			(1,866		)
Financing activities
Proceeds from borrowings	—			—			1,232			—			—			1,232
Payments on borrowings	—			(474		)	—			(33		)	—			(507		)
Proceeds from borrowings from    affiliates	2,426			5,341			673			1,281			(9,721		)	—
Payments on borrowings from    affiliates	(185		)	(6,286		)	(459		)	(741		)	7,671			—
Other intercompany financing    activities	—			51			(1,162		)	1,111			—			—
Cash dividends paid	(1,201		)	—			—			—			—			(1,201		)
Exercise of employee stock options	66			—			—			—			—			66
Repurchase of shares	(1,029		)	—			—			—			—			(1,029		)
Employee taxes paid from shares    withheld	—			(31		)	(5		)	(10		)	—			(46		)
Other - net	—			—			(6		)	(3		)	—			(9		)
Net cash provided by (used in)    financing activities	77			(1,399		)	273			1,605			(2,050		)	(1,494		)
Effect of currency on cash	—			—			—			(4		)	—			(4		)
Total increase (decrease) in cash	(1		)	6			(1		)	83			—			87
Cash at the beginning of the period	1			21			1			260			—			283
Cash at the end of the period	$	—		$	27		$	—		$	343		$	—		$	370

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS DECEMBER 31, 2018
	Eaton Corporation plc			Eaton Corporation			Guarantors			Other subsidiaries			Consolidating adjustments			Total
Net cash provided by (used in)    operating activities	$	(26	)	$	(84	)	$	220		$	2,643		$	(95	)	$	2,658
Investing activities
Capital expenditures for property,    plant and equipment	—			(98		)	(91		)	(376		)	—			(565		)
Sales (purchases) of short-term investments - net	—			—			—			355			—			355
Investments in affiliates	(4		)	(36		)	—			—			40			—
Loans to affiliates	—			(100		)	(84		)	(6,442		)	6,626			—
Repayments of loans from affiliates	—			647			1,044			4,455			(6,146		)	—
Proceeds from (payments for) settlement of currency exchange contracts not designated as hedges - net	—			11			—			(121		)	—			(110		)
Other - net	—			(78		)	23			(23		)	—			(78		)
Net cash provided by (used in)     investing activities	(4		)	346			892			(2,152		)	520			(398		)
Financing activities
Proceeds from borrowings	—			388			—			22			—			410
Payments on borrowings	—			(538		)	(35		)	(1		)	—			(574		)
Proceeds from borrowings from    affiliates	3,756			2,452			318			100			(6,626		)	—
Payments on borrowings from    affiliates	(1,334		)	(3,178		)	(710		)	(924		)	6,146			—
Capital contributions from affiliates	—			—			—			40			(40		)	—
Other intercompany financing    activities	—			463			(692		)	229			—			—
Cash dividends paid	(1,149		)	—			—			—			—			(1,149		)
Cash dividends paid to affiliates	—			—			—			(95		)	95			—
Exercise of employee stock options	29			—			—			—			—			29
Repurchase of shares	(1,271		)	—			—			—			—			(1,271		)
Employee taxes paid from shares    withheld	—			(16		)	(5		)	(3		)	—			(24		)
Other - net	—			(1		)	—			(1		)	—			(2		)
Net cash provided by (used in)    financing activities	31			(430		)	(1,124		)	(633		)	(425		)	(2,581		)
Effect of currency on cash	—			—			—			43			—			43
Total increase (decrease) in cash	1			(168		)	(12		)	(99		)	—			(278		)
Cash at the beginning of the period	—			189			13			359			—			561
Cash at the end of the period	$	1		$	21		$	1		$	260		$	—		$	283

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS DECEMBER 31, 2017
	Eaton Corporation plc			Eaton Corporation			Guarantors			Other subsidiaries			Consolidating adjustments			Total
Net cash provided by (used in)    operating activities	$	258		$	(470	)	$	15		$	4,472		$	(1,609	)	$	2,666
Investing activities
Capital expenditures for property,    plant and equipment	—			(92		)	(110		)	(318		)	—			(520		)
Proceeds from the sales    of businesses	—			338			—			269			—			607
Cash received from sales (paid for    acquisitions) of affiliates	—			—			(92		)	92			—			—
Sales (purchases) of short-term    investments - net	—			—			—			(298		)	—			(298		)
Investments in affiliates	(190		)	(108		)	—			(90		)	388			—
Return of investments in affiliates	—			—			90			—			(90		)	—
Loans to affiliates	—			(443		)	(415		)	(6,309		)	7,167			—
Repayments of loans from affiliates	—			303			385			3,478			(4,166		)	—
Other - net	—			(45		)	10			29			—			(6		)
Net cash provided by (used in)    investing activities	(190		)	(47		)	(132		)	(3,147		)	3,299			(217		)
Financing activities
Proceeds from borrowings	—			1,000			—			—			—			1,000
Payments on borrowings	—			(1,250		)	(297		)	(7		)	—			(1,554		)
Proceeds from borrowings from    affiliates	2,605			3,129			991			442			(7,167		)	—
Payments on borrowings from    affiliates	(822		)	(2,904		)	(353		)	(87		)	4,166			—
Capital contribution from affiliates	—			—			90			298			(388		)	—
Return of capital to affiliates	—			—			—			(90		)	90			—
Other intercompany financing    activities	—			652			500			(1,152		)	—			—
Cash dividends paid	(1,068		)	—			—			—			—			(1,068		)
Cash dividends paid to affiliates	—			—			(800		)	(809		)	1,609			—
Exercise of employee stock options	66			—			—			—			—			66
Repurchase of shares	(850		)	—			—			—			—			(850		)
Employee taxes paid from shares    withheld	—			(15		)	(4		)	(3		)	—			(22		)
Other - net	—			(8		)	(1		)	(5		)	—			(14		)
Net cash provided by (used in)    financing activities	(69		)	604			126			(1,413		)	(1,690		)	(2,442		)
Effect of currency on cash	—			—			—			11			—			11
Total increase (decrease) in cash	(1		)	87			9			(77		)	—			18
Cash at the beginning of the period	1			102			4			436			—			543
Cash at the end of the period	$	—		$	189		$	13		$	359		$	—		$	561

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Derivative Financial Instruments and Hedging Activities - Forward Starting Floating-to-Fixed Interest Rate Swaps (Details) $ in Millions	12 Months Ended
	Dec. 31, 2019 USD ($)
Forward Starting Floating-to-Fixed Interest Rate Swaps One [Member]
Derivative [Line Items]
Notional amount	$ 50
Fixed interest rate to be paid (percentage)	3.10%
Floating interest rate to be received (percentage)	0.00%
Derivative, term of contract	3 months
Forward Starting Floating-to-Fixed Interest Rate Swaps Two [Member]
Derivative [Line Items]
Notional amount	$ 50
Fixed interest rate to be paid (percentage)	3.06%
Floating interest rate to be received (percentage)	0.00%
Derivative, term of contract	3 months
Forward Starting Floating-to-Fixed Interest Rate Swaps Three [Member]
Derivative [Line Items]
Notional amount	$ 50
Fixed interest rate to be paid (percentage)	2.80%
Floating interest rate to be received (percentage)	0.00%
Derivative, term of contract	3 months
Forward Starting Floating-to-Fixed Interest Rate Swaps Four [Member]
Derivative [Line Items]
Notional amount	$ 50
Fixed interest rate to be paid (percentage)	2.81%
Floating interest rate to be received (percentage)	0.00%
Derivative, term of contract	3 months
Forward Starting Floating-to-Fixed Interest Rate Swaps Five [Member]
Derivative [Line Items]
Notional amount	$ 50
Fixed interest rate to be paid (percentage)	2.64%
Floating interest rate to be received (percentage)	0.00%
Derivative, term of contract	3 months
Forward Starting Floating-to-Fixed Interest Rate Swaps Six [Member]
Derivative [Line Items]
Notional amount	$ 50
Fixed interest rate to be paid (percentage)	2.64%
Floating interest rate to be received (percentage)	0.00%
Derivative, term of contract	3 months
Forward Starting Floating-to-Fixed Interest Rate Swaps Seven [Member]
Derivative [Line Items]
Notional amount	$ 50
Fixed interest rate to be paid (percentage)	2.30%
Floating interest rate to be received (percentage)	0.00%
Derivative, term of contract	3 months
Forward Starting Floating-to-Fixed Interest Rate Swaps Eight [Member]
Derivative [Line Items]
Notional amount	$ 50
Fixed interest rate to be paid (percentage)	2.08%
Floating interest rate to be received (percentage)	0.00%
Derivative, term of contract	3 months
Forward Starting Floating-to-Fixed Interest Rate Swaps Nine [Member]
Derivative [Line Items]
Notional amount	$ 50
Fixed interest rate to be paid (percentage)	1.77%
Floating interest rate to be received (percentage)	0.00%
Derivative, term of contract	3 months
Forward Starting Floating-to-Fixed Interest Rate Swaps Ten [Member]
Derivative [Line Items]
Notional amount	$ 50
Fixed interest rate to be paid (percentage)	1.51%
Floating interest rate to be received (percentage)	0.00%
Derivative, term of contract	3 months
London Interbank Offered Rate (LIBOR) [Member] | Forward Starting Floating-to-Fixed Interest Rate Swaps One [Member]
Derivative [Line Items]
Basis spread on variable rate (percentage)	0.00%
London Interbank Offered Rate (LIBOR) [Member] | Forward Starting Floating-to-Fixed Interest Rate Swaps Two [Member]
Derivative [Line Items]
Basis spread on variable rate (percentage)	0.00%
London Interbank Offered Rate (LIBOR) [Member] | Forward Starting Floating-to-Fixed Interest Rate Swaps Three [Member]
Derivative [Line Items]
Basis spread on variable rate (percentage)	0.00%
London Interbank Offered Rate (LIBOR) [Member] | Forward Starting Floating-to-Fixed Interest Rate Swaps Four [Member]
Derivative [Line Items]
Basis spread on variable rate (percentage)	0.00%
London Interbank Offered Rate (LIBOR) [Member] | Forward Starting Floating-to-Fixed Interest Rate Swaps Five [Member]
Derivative [Line Items]
Basis spread on variable rate (percentage)	0.00%
London Interbank Offered Rate (LIBOR) [Member] | Forward Starting Floating-to-Fixed Interest Rate Swaps Six [Member]
Derivative [Line Items]
Basis spread on variable rate (percentage)	0.00%
London Interbank Offered Rate (LIBOR) [Member] | Forward Starting Floating-to-Fixed Interest Rate Swaps Seven [Member]
Derivative [Line Items]
Basis spread on variable rate (percentage)	0.00%
London Interbank Offered Rate (LIBOR) [Member] | Forward Starting Floating-to-Fixed Interest Rate Swaps Eight [Member]
Derivative [Line Items]
Basis spread on variable rate (percentage)	0.00%
London Interbank Offered Rate (LIBOR) [Member] | Forward Starting Floating-to-Fixed Interest Rate Swaps Nine [Member]
Derivative [Line Items]
Basis spread on variable rate (percentage)	0.00%
London Interbank Offered Rate (LIBOR) [Member] | Forward Starting Floating-to-Fixed Interest Rate Swaps Ten [Member]
Derivative [Line Items]
Basis spread on variable rate (percentage)	0.00%

XML

Commitments and Contingencies (Tables)

12 Months Ended

Dec. 31, 2019

Commitments and Contingencies Disclosure [Abstract]

Current and long-term warranty accruals

A summary of the current and long-term warranty accruals follows:

	2019			2018			2017
Balance at January 1	$	176		$	188		$	180
Provision	204			139			163
Settled	(175		)	(145		)	(156		)
Other	(2		)	(6		)	1
Warranty accruals reclassified to held for sale	(16		)	—			—
Balance at December 31	$	187		$	176		$	188

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Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2019

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		Quoted prices in active markets for identical assets (Level 1)		Other observable inputs (Level 2)		Unobservable inputs (Level 3)
2019
Cash	$	370	$	370	$	—	$	—
Short-term investments	221		221		—		—
Net derivative contracts	53		—		53		—
2018
Cash	$	283	$	283	$	—	$	—
Short-term investments	157		157		—		—
Net derivative contracts	14		—		14		—

Summary of carrying value of short-term investments

A summary of the carrying value, which approximates the fair value due to the short-term maturities of these investments, follows:

	2019		2018
Time deposits and certificates of deposit with banks	$	150	$	111
Money market investments	71		46
Total short-term investments	$	221	$	157

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Condensed Consolidating Financial Statements - Condensed Consolidating Balance Sheets (Details) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Current assets
Cash	$ 370	$ 283	$ 561	$ 543
Short-term investments	221	157
Accounts receivable - net	3,437	3,858
Intercompany accounts receivable	0	0
Inventory	2,805	2,785
Assets held for sale	1,377	0
Prepaid expenses and other current assets	518	507
Total current assets	8,728	7,590
Property, plant and equipment - net	3,496	3,467	3,502
Other noncurrent assets
Goodwill	13,456	13,328	13,568
Other intangible assets	4,638	4,846	5,265
Operating lease assets	436	0
Deferred income taxes	372	293
Investment in subsidiaries	0	0
Intercompany loans receivable	0	0
Other assets	1,679	1,568
Total assets	32,805	31,092	32,623
Current liabilities
Short-term debt	255	414
Current portion of long-term debt	248	339
Accounts payable	2,114	2,130
Intercompany accounts payable	0	0
Accrued compensation	449	457
Liabilities held for sale	325	0
Other current liabilities	1,741	1,814
Total current liabilities	5,132	5,154
Noncurrent liabilities
Long-term debt	7,819	6,768
Pension liabilities	1,462	1,304
Other postretirement benefits liabilities	328	321
Operating lease liabilities	331	0
Deferred income taxes	396	349
Intercompany loans payable	0	0
Other noncurrent liabilities	1,204	1,054
Total noncurrent liabilities	11,540	9,796
Shareholders’ equity
Eaton shareholders’ equity	16,082	16,107
Noncontrolling interests	51	35
Total equity	16,133	16,142	17,290
Total liabilities and equity	32,805	31,092
Guarantors
Current assets
Cash	0	1	13	4
Short-term investments	0	0
Accounts receivable - net	982	1,381
Intercompany accounts receivable	1,848	1,877
Inventory	672	714
Assets held for sale	1,211
Prepaid expenses and other current assets	28	29
Total current assets	4,741	4,002
Property, plant and equipment - net	563	663
Other noncurrent assets
Goodwill	5,839	6,293
Other intangible assets	2,406	2,860
Operating lease assets	31
Deferred income taxes	74	134
Investment in subsidiaries	58,610	68,196
Intercompany loans receivable	2,983	8,406
Other assets	129	115
Total assets	75,376	90,669
Current liabilities
Short-term debt	0	0
Current portion of long-term debt	242	0
Accounts payable	340	397
Intercompany accounts payable	2,275	2,864
Accrued compensation	58	67
Liabilities held for sale	232
Other current liabilities	400	386
Total current liabilities	3,547	3,714
Noncurrent liabilities
Long-term debt	1,921	945
Pension liabilities	122	122
Other postretirement benefits liabilities	80	81
Operating lease liabilities	21
Deferred income taxes	432	553
Intercompany loans payable	36,000	39,552
Other noncurrent liabilities	272	290
Total noncurrent liabilities	38,848	41,543
Shareholders’ equity
Eaton shareholders’ equity	32,981	45,412
Noncontrolling interests	0	0
Total equity	32,981	45,412
Total liabilities and equity	75,376	90,669
Other subsidiaries
Current assets
Cash	343	260	359	436
Short-term investments	221	157
Accounts receivable - net	1,995	1,976
Intercompany accounts receivable	1,683	2,159
Inventory	1,609	1,555
Assets held for sale	166
Prepaid expenses and other current assets	371	355
Total current assets	6,388	6,462
Property, plant and equipment - net	2,079	1,946
Other noncurrent assets
Goodwill	5,875	5,293
Other intangible assets	1,930	1,664
Operating lease assets	232
Deferred income taxes	279	287
Investment in subsidiaries	23,019	32,625
Intercompany loans receivable	38,671	39,757
Other assets	733	695
Total assets	79,206	88,729
Current liabilities
Short-term debt	0	26
Current portion of long-term debt	2	1
Accounts payable	1,245	1,218
Intercompany accounts payable	1,224	1,879
Accrued compensation	278	251
Liabilities held for sale	93
Other current liabilities	809	864
Total current liabilities	3,651	4,239
Noncurrent liabilities
Long-term debt	12	7
Pension liabilities	920	791
Other postretirement benefits liabilities	76	72
Operating lease liabilities	182
Deferred income taxes	195	175
Intercompany loans payable	2,081	2,830
Other noncurrent liabilities	362	373
Total noncurrent liabilities	3,828	4,248
Shareholders’ equity
Eaton shareholders’ equity	71,676	80,207
Noncontrolling interests	51	35
Total equity	71,727	80,242
Total liabilities and equity	79,206	88,729
Eaton Corporation plc
Current assets
Cash	0	1	0	1
Short-term investments	0	0
Accounts receivable - net	0	0
Intercompany accounts receivable	9	0
Inventory	0	0
Assets held for sale	0
Prepaid expenses and other current assets	0	0
Total current assets	9	1
Property, plant and equipment - net	0	0
Other noncurrent assets
Goodwill	0	0
Other intangible assets	0	0
Operating lease assets	0
Deferred income taxes	0	0
Investment in subsidiaries	17,195	16,476
Intercompany loans receivable	0	1,508
Other assets	0	0
Total assets	17,204	17,985
Current liabilities
Short-term debt	0	0
Current portion of long-term debt	0	0
Accounts payable	0	0
Intercompany accounts payable	25	32
Accrued compensation	0	0
Liabilities held for sale	0
Other current liabilities	1	30
Total current liabilities	26	62
Noncurrent liabilities
Long-term debt	0	0
Pension liabilities	0	0
Other postretirement benefits liabilities	0	0
Operating lease liabilities	0
Deferred income taxes	0	0
Intercompany loans payable	1,096	1,816
Other noncurrent liabilities	0	0
Total noncurrent liabilities	1,096	1,816
Shareholders’ equity
Eaton shareholders’ equity	16,082	16,107
Noncontrolling interests	0	0
Total equity	16,082	16,107
Total liabilities and equity	17,204	17,985
Eaton Corporation
Current assets
Cash	27	21	189	102
Short-term investments	0	0
Accounts receivable - net	460	501
Intercompany accounts receivable	937	2,457
Inventory	596	592
Assets held for sale	0
Prepaid expenses and other current assets	106	109
Total current assets	2,126	3,680
Property, plant and equipment - net	854	858
Other noncurrent assets
Goodwill	1,742	1,742
Other intangible assets	302	322
Operating lease assets	173
Deferred income taxes	250	252
Investment in subsidiaries	10,610	13,101
Intercompany loans receivable	2,643	2,208
Other assets	817	758
Total assets	19,517	22,921
Current liabilities
Short-term debt	255	388
Current portion of long-term debt	4	338
Accounts payable	529	515
Intercompany accounts payable	953	1,718
Accrued compensation	113	139
Liabilities held for sale	0
Other current liabilities	531	536
Total current liabilities	2,385	3,634
Noncurrent liabilities
Long-term debt	5,886	5,814
Pension liabilities	420	391
Other postretirement benefits liabilities	172	168
Operating lease liabilities	128
Deferred income taxes	0	1
Intercompany loans payable	5,120	7,681
Other noncurrent liabilities	570	391
Total noncurrent liabilities	12,296	14,446
Shareholders’ equity
Eaton shareholders’ equity	4,836	4,841
Noncontrolling interests	0	0
Total equity	4,836	4,841
Total liabilities and equity	19,517	22,921
Consolidating adjustments
Current assets
Cash	0	0	$ 0	$ 0
Short-term investments	0	0
Accounts receivable - net	0	0
Intercompany accounts receivable	(4,477)	(6,493)
Inventory	(72)	(76)
Assets held for sale	0
Prepaid expenses and other current assets	13	14
Total current assets	(4,536)	(6,555)
Property, plant and equipment - net	0	0
Other noncurrent assets
Goodwill	0	0
Other intangible assets	0	0
Operating lease assets	0
Deferred income taxes	(231)	(380)
Investment in subsidiaries	(109,434)	(130,398)
Intercompany loans receivable	(44,297)	(51,879)
Other assets	0	0
Total assets	(158,498)	(189,212)
Current liabilities
Short-term debt	0	0
Current portion of long-term debt	0	0
Accounts payable	0	0
Intercompany accounts payable	(4,477)	(6,493)
Accrued compensation	0	0
Liabilities held for sale	0
Other current liabilities	0	(2)
Total current liabilities	(4,477)	(6,495)
Noncurrent liabilities
Long-term debt	0	2
Pension liabilities	0	0
Other postretirement benefits liabilities	0	0
Operating lease liabilities	0
Deferred income taxes	(231)	(380)
Intercompany loans payable	(44,297)	(51,879)
Other noncurrent liabilities	0	0
Total noncurrent liabilities	(44,528)	(52,257)
Shareholders’ equity
Eaton shareholders’ equity	(109,493)	(130,460)
Noncontrolling interests	0	0
Total equity	(109,493)	(130,460)
Total liabilities and equity	$ (158,498)	$ (189,212)

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Income Taxes

12 Months Ended

Dec. 31, 2019

Income Tax Disclosure [Abstract]

Income Taxes

INCOME TAXES

Eaton Corporation plc is domiciled in Ireland. Income (loss) before income taxes and income tax (benefit) expense are summarized below based on the geographic location of the operation to which such earnings and income taxes are attributable.

	Income (loss) before income taxes
	2019			2018			2017
Ireland	$	(201	)	$	(365	)	$	(1,090	)
Foreign	2,792			2,789			4,458
Total income before income taxes	$	2,591		$	2,424		$	3,368

	Income tax expense (benefit)
	2019			2018			2017
Current
Ireland	$	26		$	47		$	1
Foreign	410			370			357
Total current income tax expense	436			417			358
Deferred
Ireland	3			6			—
Foreign	(61		)	(145		)	24
Total deferred income tax expense (benefit)	(58		)	(139		)	24
Total income tax expense	$	378		$	278		$	382

Reconciliations of income taxes from the Ireland national statutory rate of 25% to the consolidated effective income tax rate follow:

	2019		2018		2017
Income taxes at the applicable statutory rate	25.0	%	25.0	%	25.0	%
Ireland operations
Ireland tax on trading income	(1.0	)%	(2.0	)%	—	%
Nondeductible interest expense	3.9	%	7.8	%	8.2	%
Ireland Other - net	0.1	%	0.1	%	—	%
Foreign operations
U.S. federal tax rate change	—	%	—	%	(7.5	)%
U.S. tax on foreign earnings	—	%	—	%	4.8	%
U.S. foreign tax credit	0.8	%	(0.2	)%	(3.9	)%
Tax on foreign currency loss	—	%	(1.6	)%	—	%
Earnings taxed at other than    the applicable statutory tax rate	(14.8	)%	(19.6	)%	(21.2	)%
Other items	2.5	%	2.3	%	3.1	%
Worldwide operations
Adjustments to tax liabilities	(0.5	)%	1.1	%	(1.8	)%
Adjustments to valuation allowances	(1.4	)%	(1.4	)%	4.6	%
Effective income tax expense rate	14.6	%	11.5	%	11.3	%

During 2019, income tax expense of $378 was recognized (an effective tax rate of 14.6%) compared to income tax expense of $278 in 2018 (an effective tax rate of 11.5%) and income tax expense of $382 in 2017 (an effective tax rate of 11.3%). The 2018 effective tax rate includes a tax benefit of $69 on the arbitration decision expense discussed in Note 8. The 2017 effective tax rate includes tax expense of $234 on the gain related to the sale of a business discussed in Note 2 and a tax benefit of $62 related to the U.S. Tax Cuts and Jobs Act (TCJA) which is discussed in further detail below. Excluding the impacts of the 2018 arbitration decision, the 2017 sale of business, and the 2017 TCJA, the effective tax rate was 12.8% in 2018 and 9.2% in 2017. The increase in the tax rate from 12.8% in 2018 to 14.6% in 2019 was primarily due to greater levels of income in higher tax jurisdictions. The increase from 9.2% in 2017 compared to 12.8% in 2018 was due to greater levels of income in higher tax jurisdictions and an increase in tax contingencies offset by net decreases of related valuation allowances.

The TCJA was enacted on December 22, 2017, which reduced the U.S. federal corporate tax rate from 35% to 21% and required a one-time transition tax on certain unremitted earnings of non-U.S. subsidiaries owned directly or indirectly by U.S. subsidiaries of the Company. In December 2017, the Company recorded a provisional tax benefit amount of $79 for the impact of the tax rate change on deferred tax balances and a provisional tax expense of $17 for the one-time transition tax, for a net tax benefit of $62. During 2018, the Company finalized its accounting for the 2017 enactment of the TCJA and recorded an adjustment of $17 tax expense, primarily related to the one-time transition tax, resulting in a final net tax benefit of $45.

No provision has been made for income taxes on undistributed earnings of foreign subsidiaries of approximately $28.5 billion at December 31, 2019, since it is the Company's intention to indefinitely reinvest undistributed earnings of its foreign subsidiaries. The Company expects to deploy capital to those markets which offer particularly attractive growth opportunities. The cash that is permanently reinvested is typically used to expand operations either organically or through acquisitions. It is not practicable to estimate the additional income taxes and applicable withholding taxes that would be payable on the remittance of such undistributed earnings.

Worldwide income tax payments, net of tax refunds, follow:

2019	$	425
2018	379
2017	288

Deferred Income Tax Assets and Liabilities

Components of noncurrent deferred income taxes follow:

	2019			2018
	Noncurrent assets and liabilities			Noncurrent assets and liabilities
Accruals and other adjustments
Employee benefits	$	514		$	481
Depreciation and amortization	(1,245		)	(1,198		)
Other accruals and adjustments	498			434
Ireland income tax loss carryforwards	1			1
Foreign income tax loss carryforwards	1,826			1,915
Foreign income tax credit carryforwards	349			396
Valuation allowance for income tax loss and income tax    credit carryforwards	(1,914		)	(2,032		)
Other valuation allowances	(52		)	(53		)
Total deferred income taxes	(23		)	(56		)
Deferred income taxes reported as assets held for sale	1			—
Deferred income taxes	$	(24	)	$	(56	)

At December 31, 2019, Eaton Corporation plc and certain Irish subsidiaries had tax loss carryforwards that are available to reduce future taxable income and tax liabilities. These carryforwards and their respective expiration dates are summarized below:

	2020 through 2024		2025 through 2029		2030 through 2034		2035 through 2044		Not subject to expiration		Valuation allowance
Ireland income tax loss carryforwards	$	—	$	—	$	—	$	—	$	8	$	—
Ireland deferred income tax assets for income tax loss carryforwards	—		—		—		—		1		(1		)

At December 31, 2019, the Company's foreign subsidiaries had income tax loss carryforwards and income tax credit carryforwards that are available to reduce future taxable income or tax liabilities. These carryforwards and their respective expiration dates are summarized below:

	2020 through 2024		2025 through 2029		2030 through 2034		2035 through 2044		Not subject to expiration		Valuation allowance
Foreign income tax loss carryforwards	$	874	$	52	$	7,931	$	367	$	3,233	$	—
Foreign deferred income tax assets for income tax loss carryforwards	108		23		819		108		797		(1,690		)
Foreign deferred income tax assets for income tax loss carryforwards after ASU 2013-11	90		22		810		108		796		(1,690		)
Foreign income tax credit carryforwards	115		189		40		90		30		(223		)
Foreign income tax credit carryforwards after ASU 2013-11	111		165		24		19		30		(223		)

Recoverability of Deferred Income Tax Assets

Eaton is subject to the income tax laws in the jurisdictions in which it operates. In order to determine its income tax provision for financial statement purposes, Eaton must make significant estimates and judgments about its business operations in these jurisdictions. These estimates and judgments are also used in determining the deferred income tax assets and liabilities that have been recognized for differences between the financial statement and income tax basis of assets and liabilities, and income tax loss carryforwards and income tax credit carryforwards.

Management evaluates the realizability of deferred income tax assets for each of the jurisdictions in which it operates. If the Company experiences cumulative pre-tax income in a particular jurisdiction in the three-year period including the current and prior two years, management normally concludes that the deferred income tax assets will more likely than not be realizable and no valuation allowance is recognized, unless known or planned operating developments, or changes in tax laws, would lead management to conclude otherwise. However, if the Company experiences cumulative pre-tax losses in a particular jurisdiction in the three-year period including the current and prior two years, management then considers a series of factors in the determination of whether the deferred income tax assets can be realized. These factors include historical operating results, known or planned operating developments, the period of time over which certain temporary differences will reverse, consideration of the utilization of certain deferred income tax liabilities, tax law carryback capability in the particular country, prudent and feasible tax planning strategies, changes in tax laws, and estimates of future earnings and taxable income using the same assumptions as those used for the Company's goodwill and other impairment testing. After evaluation of these factors, if the deferred income tax assets are expected to be realized within the tax carryforward period allowed for that specific country, management would conclude that no valuation allowance would be required. To the extent that the deferred income tax assets exceed the amount that is expected to be realized within the tax carryforward period for a particular jurisdiction, management would establish a valuation allowance.

Applying the above methodology, valuation allowances have been established for certain deferred income tax assets to the extent they are not expected to be realized within the particular tax carryforward period.

Unrecognized Income Tax Benefits

A summary of gross unrecognized income tax benefits follows:

	2019			2018			2017
Balance at January 1	$	913		$	735		$	629
Increases and decreases as a result of positions taken during prior years
Transfers from valuation allowances	15			2			—
Other increases, including currency translation	22			164			10
Other decreases, including currency translation	(10		)	(35		)	(30		)
Increases as a result of positions taken during the current year	80			69			162
Decreases relating to settlements with tax authorities	(16		)	(3		)	(10		)
Decreases as a result of a lapse of the applicable statute of limitations	(3		)	(19		)	(26		)
Balance at December 31	$	1,001		$	913		$	735

Eaton recognizes an income tax benefit from an uncertain tax position only if it is more likely than not that the benefit would be sustained upon examination by taxing authorities, based on the technical merits of the position. The Company evaluates and adjusts the amount of unrecognized income tax benefits based on changes in facts and circumstances. The Company does not enter into any of the United States Internal Revenue Service (IRS) Listed Transactions as set forth in Treasury Regulation 1.6011-4.

If all unrecognized income tax benefits were recognized, the net impact on the provision for income tax expense would be $660, which includes the impact of deferred tax netting pursuant to ASU 2013-11.

As of December 31, 2019 and 2018, Eaton had accrued approximately $93 and $74, respectively, for the payment of worldwide interest and penalties, which are not included in the table of unrecognized income tax benefits above. Eaton recognizes interest and penalties related to unrecognized income tax benefits in the provision for income tax expense.

The resolution of the majority of Eaton's unrecognized income tax benefits is dependent upon uncontrollable factors such as the prospect of retroactive regulations; new case law; and the willingness of the income tax authority to settle the issue, including the timing thereof. Therefore, for the majority of unrecognized income tax benefits, it is not reasonably possible to estimate the increase or decrease in the next 12 months. For each of the unrecognized income tax benefits where it is possible to estimate the increase or decrease in the balance within the next 12 months, the Company does not anticipate any significant change.

Eaton or its subsidiaries file income tax returns in Ireland and many countries around the world. With only a few exceptions, Irish and non-United States subsidiaries of Eaton are no longer subject to examinations for years before 2012.

The United States Internal Revenue Service (“IRS”) has completed its examination of the consolidated income tax returns of the Company’s United States subsidiaries (“Eaton US”) for 2005 through 2010 and has issued Statutory Notices of Deficiency (Notices) as discussed below. The statute of limitations on these tax years remains open until the matters are resolved. The IRS has also completed its examination of the consolidated income tax returns of Eaton US for 2011 through 2013 and has issued proposed adjustments as discussed below. The statute of limitations on these tax years remains open until June 30, 2021. The IRS is currently examining tax years 2014 through 2016. The statute of limitations for tax years 2014 through 2016 is open until May 31, 2021. Tax years 2017 and 2018 are still subject to examination by the IRS.

Eaton US is also under examination for the income tax filings in various states and localities of the United States. Income tax returns of states and localities within the United States will be reopened to the extent of United States federal income tax adjustments, if any, going back to 2005 when those audit years are finalized. Some states and localities might not limit their assessment to the United States federal adjustments, and may require the opening of the entire tax year.

In 2011, the IRS issued a Notice for Eaton US for the 2005 and 2006 tax years (the 2011 Notice). The 2011 Notice proposed assessments of $75 in additional taxes plus $52 in penalties related primarily to transfer pricing adjustments for products manufactured in the Company's facilities in Puerto Rico and the Dominican Republic and sold to affiliated companies located in the United States. Eaton US has set its transfer prices for products sold between these affiliates at the same prices that Eaton US sells such products to third parties as required by two successive Advance Pricing Agreements (APAs) Eaton US entered into with the IRS that governed the 2005-2010 tax years. Eaton US has continued to apply the arms-length transfer pricing methodology for 2011 through the current reporting period. Immediately prior to the 2011 Notice being issued, the IRS sent a letter stating that it was retrospectively canceling the APAs. Eaton US contested the proposed assessments in United States Tax Court. The case involved both whether the APAs should be enforced and, if not, the appropriate transfer pricing methodology. On July 26, 2017, the United States Tax Court issued a ruling in which it agreed with Eaton US that the IRS must abide by the terms of the APAs for the tax years 2005-2006. The Tax Court’s ruling on the APAs did not have a material impact on Eaton’s consolidated financial statements.

In 2014, Eaton US received a Notice from the IRS for the 2007 through 2010 tax years (the 2014 Notice) proposing assessments of $190 in additional taxes plus $72 in penalties, net of agreed credits and deductions, which the Company has also contested in Tax Court. The proposed assessments pertain primarily to the same transfer pricing issues and APA for which the Tax Court has issued its ruling during 2017 as noted above. The Company believes that the Tax Court’s ruling for tax years 2005-2006 will also be applicable to the 2007-2010 years. Following the issuance of the Tax Court’s ruling, Eaton and the IRS recognized that the ruling on the enforceability of the APAs did not address a secondary issue regarding the transfer pricing for a certain royalty paid from 2006-2010. Eaton US reported a consistent royalty rate for 2006-2010. The IRS has agreed to the royalty rate as reported by Eaton US in 2006. Although the IRS has not proposed an alternative rate, it has not agreed to apply the same royalty rate in the 2007-2010 years.

  The 2014 Notice also includes a separate proposed assessment involving the recognition of income for several of Eaton US’s controlled foreign corporations. The Company believes that the proposed assessment is without merit and is contesting the matter in Tax Court. In October 2017, Eaton and the IRS both moved for partial summary judgment on this issue. On February 25, 2019 the Tax Court granted the IRS’s motion for partial summary judgment and denied Eaton’s. The Company intends to appeal the Tax Court’s partial summary judgment decision to the United States Sixth Circuit Court of Appeals. The Company believes that it will be successful on appeal and has not recorded any additional impact of the Tax Court's decision in its consolidated financial statements. The total potential impact of the Tax Court's partial summary judgment decision on the controlled foreign corporation income recognition issue is not estimable until all matters in the open tax years have been resolved.

In 2018 the IRS completed its examination of the Eaton US tax years 2011 through 2013 and has proposed adjustments to certain transfer pricing tax positions, including adjustments similar to those proposed in the 2011 and 2014 Notices for products manufactured in the Company’s facilities in Puerto Rico and the Dominican Republic and sold to affiliated companies located in the United States. The IRS also proposed adjustments involving the recognition of income for several of Eaton US’s controlled foreign corporation, which is the same issue included in the 2014 Notice described above and subject to litigation in Tax Court. The Company intends to pursue its administrative appeals alternatives with respect to each of the IRS adjustments and believes that final resolution of the proposed adjustments will not have a material impact on its consolidated financial statements.

During 2010, the Company received a tax assessment, which included interest and penalties, in Brazil for the tax years 2005 through 2008 that relates to the amortization of certain goodwill generated from the acquisition of third-party businesses and corporate reorganizations. In 2018 the Company received an unfavorable result at the final tax administrative appeals level, resulting in an alleged tax deficiency of $31 plus $84 of interest and penalties (translated at the December 31, 2019 exchange rate). The Company is challenging the assessment in the judicial system. During 2014, the Company received a tax assessment, which included interest and penalties, for the 2009 through 2012 tax years (primarily relating to the same issues concerning the 2005 through 2008 tax years). In November 2019, the Company received an unfavorable result at the final tax administrative appeals level, resulting in an alleged tax deficiency of $33 plus $117 of interest and penalties (translated at the December 31, 2019 exchange rate). The Company plans to challenge the assessment in the judicial system. Challenges in the judicial system are expected to take up to 10 years to resolve. The Company continues to believe that final resolution of both of the assessments will not have a material impact on its consolidated financial statements.

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LEASES LEASES

12 Months Ended

Dec. 31, 2019

Leases [Abstract]

LEASES

LEASES

Eaton leases certain manufacturing facilities, warehouses, distribution centers, office space, vehicles and equipment. Most real estate leases contain renewal options. The exercise of lease renewal options is at the Company's sole discretion. The Company's lease agreements typically do not contain any significant guarantees of asset values at the end of a lease or restrictive covenants. Payments within certain lease agreements are adjusted periodically for changes in an index or rate.

The components of lease expense follows:

	2019
Operating lease cost	$	166
Finance lease cost:
Amortization of lease assets	5
Interest on lease liabilities	1
Short-term lease cost	46
Variable lease cost	22
Sublease income	(3		)
Total lease cost	$	237

The net gain recorded on sale leaseback transactions for the year ended December 31, 2019 were $16.

Supplemental cash flow information related to leases follows:

	2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflows - payments on operating leases	$	(168	)
Operating cash outflows - interest payments on finance leases	(1		)
Financing cash outflows - payments on finance lease obligations	(6		)
Lease assets obtained in exchange for new lease obligations, including leases acquired:
Operating leases	$	114
Finance leases	24

Supplemental balance sheet information related to leases follows:

	December 31, 2019
Operating Leases
Operating lease assets	$	436
Other current liabilities	121
Operating lease liabilities	331
Total operating lease liabilities	$	452
Finance Leases
Land and buildings	$	24
Machinery and equipment	18
Accumulated depreciation	(16		)
Net property, plant and equipment	$	26
Current portion of long-term debt	$	6
Long-term debt	21
Total finance lease liabilities	$	27
Weighted-average remaining lease term
Operating leases	5.1 years
Finance leases	6.8 years
Weighted-average discount rate
Operating leases	3.7		%
Finance leases	7.6		%

Maturities of lease liabilities at December 31, 2019 follows:

	Operating Leases		Finance Leases
2020	$	142	$	8
2021	113		8
2022	82		6
2023	56		4
2024	37		2
Thereafter	82		9
Total lease payments	512		37
Less imputed interest	60		10
Total present value of lease liabilities	$	452	$	27

A summary of minimum rental commitments at December 31, 2018 under noncancelable operating leases, which expire at various dates and in most cases contain renewal options, for each of the next five years and thereafter in the aggregate, follow:

	Operating Leases
2019	$	165
2020	133
2021	106
2022	75
2023	53
Thereafter	110
Total lease commitments	$	642

A summary of rental expense follows:

2018	$	232
2017	222

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Retirement Benefits Plans - Other Postretirement Benefits Plan Assumptions (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Defined Benefit Plan, Effect of One-Percentage Point Change in Assumed Health Care Cost Trend Rate [Abstract]
Effect on total service and interest cost, 1% increase	$ 1
Effect on total service and interest cost, 1% decrease	0
Effect on other postretirement liabilities, 1% increase	10
Effect on other postretirement liabilities, 1% decrease	$ (8)
Other postretirement benefits plans [Member]
Assumptions used to determine benefit obligation at year-end
Discount rate	3.13%	4.23%	3.55%
Health care cost trend rate assumed for next year	6.95%	7.10%	8.25%
Ultimate health care cost trend rate	4.75%	4.75%	4.75%
Year ultimate health care cost trend rate is achieved	2029	2028	2027
Assumptions used to determine expense
Discount rate used to determine benefit obligation	4.23%	3.55%	3.96%
Discount rate used to determine service cost	4.29%	3.62%	4.11%
Discount rate used to determine interest cost	3.85%	3.04%	3.18%
Initial health care cost trend rate	7.10%	8.25%	7.35%
Ultimate health care cost trend rate	4.75%	4.75%	4.75%
Year ultimate health care cost trend rate is achieved	2028	2027	2026

XML

Income Taxes - Reconciliations of Income Taxes from the Appropriate Statutory Rate (Details)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Reconciliation of income taxes from appropriate statutory rate to the consolidated effective income tax rate [Line Items]
Income taxes at the applicable statutory rate	25.00%	25.00%	25.00%
Effective income tax expense rate	14.60%	11.50%	11.30%
Ireland Operations [Member]
Reconciliation of income taxes from appropriate statutory rate to the consolidated effective income tax rate [Line Items]
Ireland tax on trading income	(1.00%)	(2.00%)	0.00%
Nondeductible interest expense	3.90%	7.80%	8.20%
Other reconciling items	0.10%	0.10%	0.00%
United States operations [Member]
Reconciliation of income taxes from appropriate statutory rate to the consolidated effective income tax rate [Line Items]
U.S. federal tax rate change	0.00%	0.00%	(7.50%)
U.S. tax on foreign earnings	0.00%	0.00%	4.80%
U.S. foreign tax credit	0.80%	(0.20%)	(3.90%)
Tax on foreign currency loss	0.00%	(1.60%)	0.00%
Other foreign operations [Member]
Reconciliation of income taxes from appropriate statutory rate to the consolidated effective income tax rate [Line Items]
Earnings taxed at other than the applicable statutory tax rate	(14.80%)	(19.60%)	(21.20%)
Other reconciling items	2.50%	2.30%	3.10%
Worldwide Operations [Member]
Reconciliation of income taxes from appropriate statutory rate to the consolidated effective income tax rate [Line Items]
Adjustments to tax liabilities	(0.50%)	1.10%	(1.80%)
Adjustments to valuation allowances	(1.40%)	(1.40%)	4.60%
Effective Income Tax Rate [Member]
Reconciliation of income taxes from appropriate statutory rate to the consolidated effective income tax rate [Line Items]
Effective income tax expense rate	14.60%	11.50%	11.30%

XML

Income Taxes - Operating Loss and Tax Credit Carryforwards, Domestic, By Expiration Dates (Details) $ in Millions	Dec. 31, 2019 USD ($)
Internal Revenue Service (IRS) [Member] | Domestic Tax Authority [Member] | 2020 through 2024 [Member]
Operating Loss and Tax Credit Carry Forward [Line Items]
Foreign income tax loss carryforwards	$ 874
Foreign deferred income tax assets for income tax loss carryforwards	(108)
Foreign income tax credit carryforwards	(115)
Internal Revenue Service (IRS) [Member] | Domestic Tax Authority [Member] | 2020 through 2024 [Member] | After ASU 2013-11 [Member]
Operating Loss and Tax Credit Carry Forward [Line Items]
Foreign deferred income tax assets for income tax loss carryforwards	(90)
Internal Revenue Service (IRS) [Member] | Domestic Tax Authority [Member] | 2025 through 2029 [Member]
Operating Loss and Tax Credit Carry Forward [Line Items]
Foreign income tax loss carryforwards	52
Foreign deferred income tax assets for income tax loss carryforwards	(23)
Foreign income tax credit carryforwards	(189)
Internal Revenue Service (IRS) [Member] | Domestic Tax Authority [Member] | 2025 through 2029 [Member] | After ASU 2013-11 [Member]
Operating Loss and Tax Credit Carry Forward [Line Items]
Foreign deferred income tax assets for income tax loss carryforwards	(22)
Internal Revenue Service (IRS) [Member] | Domestic Tax Authority [Member] | 2030 through 2034 [Member]
Operating Loss and Tax Credit Carry Forward [Line Items]
Foreign income tax loss carryforwards	7,931
Foreign deferred income tax assets for income tax loss carryforwards	(819)
Foreign income tax credit carryforwards	(40)
Internal Revenue Service (IRS) [Member] | Domestic Tax Authority [Member] | 2030 through 2034 [Member] | After ASU 2013-11 [Member]
Operating Loss and Tax Credit Carry Forward [Line Items]
Foreign deferred income tax assets for income tax loss carryforwards	(810)
Internal Revenue Service (IRS) [Member] | Domestic Tax Authority [Member] | Not subject to expiration [Member]
Operating Loss and Tax Credit Carry Forward [Line Items]
Foreign income tax loss carryforwards	3,233
Foreign deferred income tax assets for income tax loss carryforwards	(797)
Foreign income tax credit carryforwards	(30)
Internal Revenue Service (IRS) [Member] | Domestic Tax Authority [Member] | Not subject to expiration [Member] | After ASU 2013-11 [Member]
Operating Loss and Tax Credit Carry Forward [Line Items]
Foreign deferred income tax assets for income tax loss carryforwards	(796)
Internal Revenue Service (IRS) [Member] | Domestic Tax Authority [Member] | Valuation allowance [Member]
Operating Loss and Tax Credit Carry Forward [Line Items]
Foreign income tax loss carryforwards	0
Foreign deferred income tax assets for income tax loss carryforwards	(1,690)
Foreign income tax credit carryforwards	(223)
Internal Revenue Service (IRS) [Member] | Domestic Tax Authority [Member] | Valuation allowance [Member] | After ASU 2013-11 [Member]
Operating Loss and Tax Credit Carry Forward [Line Items]
Foreign deferred income tax assets for income tax loss carryforwards	(1,690)
Internal Revenue Service (IRS) [Member] | Domestic Tax Authority [Member] | 2035 through 2044 [Member]
Operating Loss and Tax Credit Carry Forward [Line Items]
Foreign income tax loss carryforwards	367
Foreign deferred income tax assets for income tax loss carryforwards	(108)
Foreign income tax credit carryforwards	(90)
Internal Revenue Service (IRS) [Member] | Domestic Tax Authority [Member] | 2035 through 2044 [Member] | After ASU 2013-11 [Member]
Operating Loss and Tax Credit Carry Forward [Line Items]
Foreign deferred income tax assets for income tax loss carryforwards	(108)
Domestic Tax Authority [Member] | Internal Revenue Service (IRS) [Member] | 2020 through 2024 [Member] | After ASU 2013-11 [Member]
Operating Loss and Tax Credit Carry Forward [Line Items]
Foreign income tax credit carryforwards	(111)
Domestic Tax Authority [Member] | Internal Revenue Service (IRS) [Member] | 2025 through 2029 [Member] | After ASU 2013-11 [Member]
Operating Loss and Tax Credit Carry Forward [Line Items]
Foreign income tax credit carryforwards	(165)
Domestic Tax Authority [Member] | Internal Revenue Service (IRS) [Member] | 2030 through 2034 [Member] | After ASU 2013-11 [Member]
Operating Loss and Tax Credit Carry Forward [Line Items]
Foreign income tax credit carryforwards	(24)
Domestic Tax Authority [Member] | Internal Revenue Service (IRS) [Member] | Not subject to expiration [Member] | After ASU 2013-11 [Member]
Operating Loss and Tax Credit Carry Forward [Line Items]
Foreign income tax credit carryforwards	(30)
Domestic Tax Authority [Member] | Internal Revenue Service (IRS) [Member] | Valuation allowance [Member] | After ASU 2013-11 [Member]
Operating Loss and Tax Credit Carry Forward [Line Items]
Foreign income tax credit carryforwards	(223)
Domestic Tax Authority [Member] | Internal Revenue Service (IRS) [Member] | 2035 through 2044 [Member] | After ASU 2013-11 [Member]
Operating Loss and Tax Credit Carry Forward [Line Items]
Foreign income tax credit carryforwards	$ (19)

XML

Retirement Benefits Plans - Change in Plan Level 3 Assets (Details) - Fair Value, Inputs, Level 3 [Member] - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Defined Benefit Plan, Change in Fair Value of Plan Assets, Level 3 Reconciliation [Roll Forward]
Beginning balance	$ 96	$ 92
Gains (losses) relating to assets still held at year-end	16	(1)
Purchases, sales, settlements - net	78	5
Transfers into or out of Level 3	0	0
Beginning balance	190	96
Real Estate Funds [Member]
Defined Benefit Plan, Change in Fair Value of Plan Assets, Level 3 Reconciliation [Roll Forward]
Beginning balance	21	19
Gains (losses) relating to assets still held at year-end	4	(1)
Purchases, sales, settlements - net	36	3
Transfers into or out of Level 3	0	0
Beginning balance	61	21
Other Pension Plan Assets [Member]
Defined Benefit Plan, Change in Fair Value of Plan Assets, Level 3 Reconciliation [Roll Forward]
Beginning balance	75	73
Gains (losses) relating to assets still held at year-end	(12)	0
Purchases, sales, settlements - net	42	2
Transfers into or out of Level 3	0	0
Beginning balance	$ 129	$ 75

XML

Goodwill and Other Intangible Assets - Intangible Assets Amortization Expense (Details) $ in Millions	12 Months Ended
	Dec. 31, 2019 USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
2019	$ 354
2020	351
2021	341
2022	332
2023	286
2024	$ 275

XML

Revenue Recognition Schedule of Disaggregation of Sales (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Disaggregation of Revenue [Line Items]
Net sales	$ 21,390	$ 21,609	$ 20,404
UNITED STATES
Disaggregation of Revenue [Line Items]
Net sales	12,336	12,034	11,222
Electrical Products [Member]
Disaggregation of Revenue [Line Items]
Net sales	7,148	7,124	6,917
Electrical Products [Member] | UNITED STATES
Disaggregation of Revenue [Line Items]
Net sales	4,269	4,112
Electrical Products [Member] | Countries Other Than The United States [Member]
Disaggregation of Revenue [Line Items]
Net sales	2,879	3,012
Electrical Systems and Services [Member]
Disaggregation of Revenue [Line Items]
Net sales	6,287	6,024	5,666
Electrical Systems and Services [Member] | UNITED STATES
Disaggregation of Revenue [Line Items]
Net sales	4,148	3,936
Electrical Systems and Services [Member] | Countries Other Than The United States [Member]
Disaggregation of Revenue [Line Items]
Net sales	2,139	2,088
Hydraulics [Member]
Disaggregation of Revenue [Line Items]
Net sales	2,552	2,756	2,468
Hydraulics [Member] | UNITED STATES
Disaggregation of Revenue [Line Items]
Net sales	1,112	1,190
Hydraulics [Member] | Countries Other Than The United States [Member]
Disaggregation of Revenue [Line Items]
Net sales	1,440	1,566
Aerospace [Member]
Disaggregation of Revenue [Line Items]
Net sales	2,044	1,896	1,744
Aerospace [Member] | Original Equipment Manufacturers [Member]
Disaggregation of Revenue [Line Items]
Net sales	1,167	1,085
Aerospace [Member] | Aftermarket, Distribution And End User [Member]
Disaggregation of Revenue [Line Items]
Net sales	877	811
Vehicle [Member]
Disaggregation of Revenue [Line Items]
Net sales	3,038	3,489	3,326
Vehicle [Member] | Commercial [Member]
Disaggregation of Revenue [Line Items]
Net sales	1,538	1,759
Vehicle [Member] | Passenger And Light Duty [Member]
Disaggregation of Revenue [Line Items]
Net sales	1,500	1,730
eMobility [Member]
Disaggregation of Revenue [Line Items]
Net sales	$ 321	$ 320	$ 283

XML

LEASES - Supplemental Balance Sheet Information Related to Leases (Details) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018
Lessee, Lease, Description [Line Items]
Operating lease assets	$ 436	$ 0
Other current liabilities	121
Operating lease liabilities	331	$ 0
Total operating lease liabilities	452
Accumulated depreciation	(16)
Net property, plant and equipment	26
Current portion of long-term debt	6
Long-term debt	21
Total finance lease liabilities	$ 27
Operating leases, weighted average remaining term	5 years 1 month 6 days
Finance leases, weighted average remaining lease term	6 years 9 months 18 days
Operating lease, weighted average discount rate, percent	3.70%
Finance lease, weighted average discount rate, percent	7.60%
Land and Building [Member]
Lessee, Lease, Description [Line Items]
Finance Lease, right-of-use asset	$ 24
Machinery and Equipment [Member]
Lessee, Lease, Description [Line Items]
Finance Lease, right-of-use asset	$ 18

XML

Retirement Benefits Plans - Change in Plan Assets (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Change in plan assets
Balance at January 1	$ 4,628
Balance at December 31	5,336	$ 4,628
Pension plan [Member]
Change in plan assets
Employer contributions	119	126	$ 473
Pension plan [Member] | UNITED STATES
Change in plan assets
Balance at January 1	3,068	3,585
Actual return on plan assets	618	(252)
Employer contributions	17	17	374
Gross benefits paid	(270)	(282)
Currency translation	0	0
Acquisitions and divestitures	0	0
Other	0	0
Balance at December 31	3,433	3,068	3,585
Pension plan [Member] | Non-United States pension liabilities [Member]
Change in plan assets
Balance at January 1	1,560	1,727
Actual return on plan assets	230	(72)
Employer contributions	102	109	99
Gross benefits paid	(102)	(112)
Currency translation	58	(93)
Acquisitions and divestitures	0	0
Other	55	1
Balance at December 31	1,903	1,560	1,727
Other postretirement liabilities [Member]
Change in plan assets
Balance at January 1	37	55
Actual return on plan assets	5	0
Employer contributions	15	25
Gross benefits paid	(60)	(67)
Currency translation	0	0
Acquisitions and divestitures	0	0
Other	26	24
Balance at December 31	$ 23	$ 37	$ 55

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Equity-Based Compensation Information Related to Restricted Stock Units and Awards (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Share-based Payment Arrangement [Abstract]
Pre-tax expense for RSUs and RSAs	$ 57	$ 59	$ 66
After-tax expense for RSUs and RSAs	45	46	43
Fair value of vested RSUs and RSAs	$ 103	$ 71	$ 73

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Eaton Shareholders' Equity - Reclassifications Out of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions		12 Months Ended
		Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives[Line Items]
Tax (benefit) expense		$ (378)	$ (278)	$ (382)
Currency exchange contracts		14,338	$ 14,511	$ 13,756
Reclassification out of Accumulated Other Comprehensive Loss [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives[Line Items]
Total reclassifications for the period		(113)
Reclassification out of Accumulated Other Comprehensive Loss [Member] | Amortization of defined benefit pension and other postretirement benefits items [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives[Line Items]
Actuarial loss and prior service cost	[1]	(148)
Tax (benefit) expense		31
Total reclassifications for the period		(117)
Reclassification out of Accumulated Other Comprehensive Loss [Member] | Gains and losses on cash flow hedges [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives[Line Items]
Tax (benefit) expense		(1)
Total reclassifications for the period		4
Reclassification out of Accumulated Other Comprehensive Loss [Member] | Gains and losses on cash flow hedges [Member] | Currency exchange contracts
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives[Line Items]
Currency exchange contracts		$ 5

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

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Retirement Benefits Plans - Obligations and Funded Status (Details) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Funded status
Fair value of plan assets	$ 5,336	$ 4,628
Pension plan [Member] | UNITED STATES
Funded status
Fair value of plan assets	3,433	3,068	$ 3,585
Benefit obligations	(4,028)	(3,633)	(3,961)
Funded status	(595)	(565)
Amounts recognized in the Consolidated Balance Sheets
Non-current assets	0	0
Current liabilities	(23)	(20)
Non-current liabilities	(572)	(545)
Total	(595)	(565)
Amounts recognized in Accumulated other comprehensive loss (pre-tax)
Net actuarial (gain) loss	1,096	1,153
Prior service cost (credit)	7	7
Total	1,103	1,160	1,063
Pension plan [Member] | Non-United States pension liabilities [Member]
Funded status
Fair value of plan assets	1,903	1,560	1,727
Benefit obligations	(2,747)	(2,285)	(2,399)
Funded status	(844)	(725)
Amounts recognized in the Consolidated Balance Sheets
Non-current assets	73	58
Current liabilities	(27)	(24)
Non-current liabilities	(890)	(759)
Total	(844)	(725)
Amounts recognized in Accumulated other comprehensive loss (pre-tax)
Net actuarial (gain) loss	879	683
Prior service cost (credit)	25	27
Total	904	710	604
Other postretirement liabilities [Member]
Funded status
Fair value of plan assets	23	37	55
Benefit obligations	(378)	(378)	(448)
Funded status	(355)	(341)
Amounts recognized in the Consolidated Balance Sheets
Non-current assets	0	0
Current liabilities	(27)	(20)
Non-current liabilities	(328)	(321)
Total	(355)	(341)
Amounts recognized in Accumulated other comprehensive loss (pre-tax)
Net actuarial (gain) loss	(8)	(20)
Prior service cost (credit)	(17)	(32)
Total	$ (25)	$ (52)	$ (27)

XML

Revenue Recognition Narrative (Details) $ in Millions	12 Months Ended
	Dec. 31, 2019 USD ($) segment	Dec. 31, 2018 USD ($)
Revenue from Contract with Customer [Abstract]
Backlog of unsatisfied or partially satisfied obligations	$ 5,400
Accounts receivables from customers	$ 3,090	$ 3,402
Sales recognized over time, as a percent of Consolidated Net Sales (less than)	5.00%
Number of Operating Segments | segment	6
Unbilled receivables	$ 101	$ 94
Backlog expected to be recognized in the next twelve months (as a percent)	87.00%

XML

Summary of Significant Accounting Policies - Other Long-Lived Assets (Details)	12 Months Ended
	Dec. 31, 2019
Patents and technology [Member]
Long-Lived Assets [Line Items]
Weighted average amortization period for intangible assets (in years)	18 years
Customer relationships [Member]
Long-Lived Assets [Line Items]
Weighted average amortization period for intangible assets (in years)	17 years
Trademarks [Member]
Long-Lived Assets [Line Items]
Weighted average amortization period for intangible assets (in years)	17 years
Buildings [Member]
Long-Lived Assets [Line Items]
Property, plant and equipment useful life (in years)	40 years
Machinery and Equipment [Member] | Minimum
Long-Lived Assets [Line Items]
Property, plant and equipment useful life (in years)	3 years
Machinery and Equipment [Member] | Maximum
Long-Lived Assets [Line Items]
Property, plant and equipment useful life (in years)	10 years
Software [Member] | Maximum
Long-Lived Assets [Line Items]
Property, plant and equipment useful life (in years)	15 years

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Acquisition and Divestitures of Businesses - Souriau-Sunbank Connection Technologies (Details) - USD ($) $ in Millions			12 Months Ended
	Dec. 31, 2019	Dec. 20, 2019	Dec. 31, 2019	Jun. 30, 2019	Dec. 31, 2018	Dec. 31, 2017
Business Acquisition [Line Items]
Goodwill	$ 13,456		$ 13,456		$ 13,328	$ 13,568
Souriau-Sunbank Connection Technologies
Business Acquisition [Line Items]
Cash purchase price		$ 903
Pro forma revenue				$ 363
Accounts Receivables		60
Inventory		121
Prepaid expenses and other current assets		5
Property, plant and equipment		101
Other intangible assets		385
Other assets		8
Accounts payable		(34)
Other current liabilities		(51)
Other noncurrent liabilities		(130)
Total identifiable net assets		465
Noncontrolling interests		(4)
Goodwill		442
Total consideration, net of cash received		$ 903
Acquisition related transaction costs			$ 2
Business Combination, Pro Forma Information, Revenue of Acquiree since Acquisition Date, Actual	$ 3

XML

Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2019

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

General Information and Basis of Presentation

Eaton Corporation plc (Eaton or the Company) is a power management company with 2019 net sales of $21.4 billion. Eaton’s mission is to improve the quality of life and the environment through the use of power management technologies and services. We provide sustainable solutions that help our customers effectively manage electrical, hydraulic and mechanical power – more safely, more efficiently and more reliably. Eaton has approximately 101,000 employees in 60 countries and sells products to customers in more than 175 countries.

The consolidated financial statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States. Preparation of the consolidated financial statements requires management to make estimates and assumptions that affect amounts reported in the consolidated financial statements and notes. Actual results could differ from these estimates. Management has evaluated subsequent events through the date the consolidated financial statements were filed with the Securities Exchange Commission.

The consolidated financial statements include the accounts of Eaton and all subsidiaries and other entities it controls. Intercompany transactions and balances have been eliminated. The equity method of accounting is used for investments in associate companies where the Company has significant influence and generally a 20% to 50% ownership interest. Equity investments are evaluated for impairment whenever events or circumstances indicate the book value of the investment exceeds fair value. An impairment would exist if there is an other-than-temporary decline in value. Income from equity investments is reported in Other (income) expense - net. Eaton does not have off-balance sheet arrangements or financings with unconsolidated entities.

Eaton's functional currency is United States Dollars (USD). The functional currency for most subsidiaries is their local currency. Financial statements for these subsidiaries are translated at year-end exchange rates as to assets and liabilities and weighted-average exchange rates as to revenues and expenses. The resulting translation adjustments are recognized in Accumulated other comprehensive loss.

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

Adoption of New Accounting Standards

Eaton adopted Accounting Standard Update 2016-02, Leases (Topic 842), and related amendments, in the first quarter of 2019 using the optional transition method and has not restated prior periods. The Company elected to use the package of practical expedients permitted under the transition guidance within the new standard, which among other things, allowed the carry forward of historical lease classification of existing leases. The Company recorded a cumulative-effect adjustment of less than $1 to retained earnings as of January 1, 2019. Additionally, the adoption of the new standard resulted in the recording of lease assets and lease liabilities for operating leases of $435 and $446, respectively, as of January 1, 2019. The adoption of this standard did not have a material impact to the Consolidated Statements of Income or Cash Flows.

Eaton adopted Accounting Standard Update 2017-12, Derivatives and Hedging (Topic 815) - Targeted Improvements to Accounting for Hedging Activities, in the first quarter 2019 using the modified retrospective approach for hedge instruments that existed at the date of adoption. ASU 2017-12 is intended to better align the Company's risk management activities with financial reporting for hedging relationships. The standard eliminates the requirement to separately measure and report hedge ineffectiveness, expands the ability to hedge specific risk components, and generally requires the change in value of the hedge instrument and hedged item to be presented in the same income statement line. The new disclosure requirements were applied on a prospective basis and comparative information has not been restated. The adoption of this standard did not have a material impact on the consolidated financial statements.

Eaton adopted Accounting Standards Update 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, in the first quarter of 2020. This standard introduces new guidance for accounting for credit losses on receivables. The Company did not recognize a cumulative-effect adjustment to retained earnings as of January 1, 2020, as the adoption of this standard did not have a material impact on the consolidated financial statements.

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.

Goodwill and Indefinite Life Intangible Assets

Goodwill is evaluated annually for impairment as of July 1 using either a quantitative or qualitative analysis. Goodwill is tested for impairment at the reporting unit level, which is equivalent to Eaton's operating segments and based on the net assets for each segment, including goodwill and intangible assets. Goodwill is assigned to each operating segment, as this represents the lowest level that constitutes a business and is the level at which management regularly reviews the operating results. The Company performs a quantitative analysis using a discounted cash flow model and other valuation techniques, but may elect to perform a qualitative analysis. Additionally, goodwill is evaluated for impairment whenever an event occurs or circumstances change that would indicate that it is more likely than not that the fair value of an operating segment is less than its carrying amount.

The annual goodwill impairment test was performed using a qualitative analysis in 2019 and 2018, except for the Hydraulics segment which used a quantitative analysis in 2019. A qualitative analysis is performed by assessing certain trends and factors, including projected market outlook and growth rates, forecasted and actual sales and operating profit margins, discount rates, industry data, and other relevant qualitative factors. These trends and factors are compared to, and based on, the assumptions used in the most recent quantitative analysis performed for each reporting unit. The results of the qualitative analyses did not indicate a need to perform quantitative analysis.

Goodwill impairment testing was also performed using quantitative analyses in 2019 as a result of the Lighting business being classified as held for sale as discussed in Note 2, and in 2018 for the Electrical Products, Vehicle and eMobility segments due to a reorganization of the Company’s businesses resulting in the creation of the eMobility segment. The Company used the relative fair value method to reallocate goodwill.

Quantitative analyses were performed by estimating the fair value for each reporting unit using a discounted cash flow model, which considered forecasted cash flows discounted at an estimated weighted-average cost of capital. The forecasted cash flows were based on the Company's long-term operating plan and a terminal value was used to estimate the operating segment's cash flows beyond the period covered by the operating plan. The weighted-average cost of capital is an estimate of the overall after-tax rate of return required by equity and debt market holders of a business enterprise. These analyses require the exercise of judgments, including judgments about appropriate discount rates, perpetual growth rates, revenue growth, and margin assumptions of the respective reporting unit. Sensitivity analyses were performed around certain of these assumptions in order to assess the reasonableness of the assumptions and the resulting estimated fair values.

Based on these analyses performed in 2019 and 2018, the fair value of Eaton's reporting units continue to substantially exceed their respective carrying amounts and thus, no impairment exists.

Indefinite life intangible assets consist of certain trademarks. They are evaluated annually for impairment as of July 1 using either a quantitative or qualitative analysis to determine whether their fair values exceed their respective carrying amounts. Indefinite life intangible asset impairment testing for 2019 and 2018 was performed using a quantitative analysis. The Company determines the fair value of these assets using a royalty relief methodology similar to that employed when the associated assets were acquired, but using updated estimates of future sales, cash flows and profitability. Additionally, indefinite life intangible assets are evaluated for impairment whenever an event occurs or circumstances change that would indicate that it is more likely than not that the asset is impaired. For 2019 and 2018, the fair value of indefinite lived intangible assets exceeded the respective carrying value.

For additional information about goodwill and other intangible assets, see Note 4.

Leases

The Company determines if an arrangement is a lease at inception. Operating lease assets and liabilities are recognized at the commencement date of the lease based on the present value of lease payments over the lease term. Lease assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. As most leases do not provide an implicit interest rate, Eaton uses its incremental borrowing rate based on the information available at the lease commencement date in determining the present value of lease payments. The length of a lease term includes options to extend or terminate the lease when it is reasonably certain that the Company will exercise those options. The Company made an accounting policy election to not recognize lease assets or liabilities for leases with a term of 12 months or less. Additionally, when accounting for leases, the Company combines payments for leased assets, related services and other components of a lease.

Other Long-Lived Assets

Depreciation and amortization for property, plant and equipment, and intangible assets subject to amortization, are generally computed by the straight-line method and included in Cost of products sold, Selling and administrative expense, and Research and development expense, as appropriate. Cost of buildings are depreciated generally over 40 years and machinery and equipment over 3 to 10 years. At December 31, 2019, the weighted-average amortization period for intangible assets subject to amortization was 18 years for patents and technology; 17 years for customer relationships; and 17 years for certain trademarks. Software is generally amortized up to a life of 15 years.

Other long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate the carrying amount may not be recoverable. Upon indications of impairment, assets and liabilities are grouped at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities. The asset group would be considered impaired when the estimated future net undiscounted cash flows generated by the asset group are less than its carrying value. Determining asset groups and underlying cash flows requires the use of significant judgment.

Retirement Benefits Plans

For the principal pension plans in the United States, Canada, Puerto Rico and the United Kingdom, the Company uses a market-related value of plan assets to calculate the expected return on assets used to determine net periodic benefit costs. The market-related value of plan assets is a calculated value that recognizes changes in the fair value of plan assets over a five year period. All other plans use fair value of plan assets.

Net actuarial gains or losses are amortized to expense on a plan-by-plan basis when they exceed the accounting corridor. The Company’s corridors are set at either 8% or 10%, depending on the plan, of the greater of the plan assets or benefit obligations. Gains or losses outside of the corridor are subject to amortization over an average employee future service period that differs by plan, but is approximately 10 years on a weighted average basis. If most or all of the plan’s participants are no longer actively accruing benefits, the average life expectancy is used.

Asset Retirement Obligations

A conditional asset retirement obligation is recognized at fair value when incurred if the fair value of the liability can be reasonably estimated. Uncertainty about the timing or method of settlement of a conditional asset retirement obligation would be considered in the measurement of the liability when sufficient information exists. Eaton believes that for substantially all of its asset retirement obligations, there is an indeterminate settlement date because the range of time over which the Company may settle the obligation is unknown or cannot be estimated. A liability for these obligations will be recognized when sufficient information is available to estimate fair value.

Income Taxes

Deferred income tax assets and liabilities are determined based on the difference between the financial statement and tax basis of the respective assets and liabilities, using enacted tax rates in effect for the year when the differences are expected to reverse. Deferred income tax assets are recognized for income tax loss carryforwards and income tax credit carryforwards. Judgment is required in determining and evaluating income tax provisions and valuation allowances for deferred income tax assets. Eaton recognizes an income tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by taxing authorities, based on the technical merits of the position. Eaton evaluates and adjusts these accruals based on changing facts and circumstances. Eaton recognizes interest and penalties related to unrecognized income tax benefits in the provision for income tax expense. Eaton's policy is to release income tax effects from accumulated other comprehensive income when individual units of account are sold, terminated, or extinguished. For additional information about income taxes, see Note 9.

Derivative Financial Instruments and Hedging Activities

Eaton uses derivative financial instruments to manage the exposure to the volatility in raw material costs, currency, and interest rates on certain debt. These instruments are marked to fair value in the accompanying Consolidated Balance Sheets. Changes in the fair value of derivative assets or liabilities (i.e., gains or losses) are recognized depending upon the type of hedging relationship and whether an instrument has been designated as a hedge. For those instruments that qualify for hedge accounting, Eaton designates the hedging instrument, based upon the exposure being hedged, as a cash flow hedge, a fair value hedge, or a hedge of a net investment in a foreign operation. Changes in fair value of these instruments that do not qualify for hedge accounting are recognized immediately in net income. See Note 13 for additional information about hedges and derivative financial instruments.

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Summary of Significant Accounting Policies Summary of Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2019

Accounting Policies [Abstract]

General Information

General Information and Basis of Presentation

Eaton Corporation plc (Eaton or the Company) is a power management company with 2019 net sales of $21.4 billion. Eaton’s mission is to improve the quality of life and the environment through the use of power management technologies and services. We provide sustainable solutions that help our customers effectively manage electrical, hydraulic and mechanical power – more safely, more efficiently and more reliably. Eaton has approximately 101,000 employees in 60 countries and sells products to customers in more than 175 countries.

The consolidated financial statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States. Preparation of the consolidated financial statements requires management to make estimates and assumptions that affect amounts reported in the consolidated financial statements and notes. Actual results could differ from these estimates. Management has evaluated subsequent events through the date the consolidated financial statements were filed with the Securities Exchange Commission.

The consolidated financial statements include the accounts of Eaton and all subsidiaries and other entities it controls. Intercompany transactions and balances have been eliminated. The equity method of accounting is used for investments in associate companies where the Company has significant influence and generally a 20% to 50% ownership interest. Equity investments are evaluated for impairment whenever events or circumstances indicate the book value of the investment exceeds fair value. An impairment would exist if there is an other-than-temporary decline in value. Income from equity investments is reported in Other (income) expense - net. Eaton does not have off-balance sheet arrangements or financings with unconsolidated entities.

Eaton's functional currency is United States Dollars (USD). The functional currency for most subsidiaries is their local currency. Financial statements for these subsidiaries are translated at year-end exchange rates as to assets and liabilities and weighted-average exchange rates as to revenues and expenses. The resulting translation adjustments are recognized in Accumulated other comprehensive loss.

Business Description and Basis of Presentation

Eaton Corporation plc (Eaton or the Company) is a power management company with 2019 net sales of $21.4 billion. Eaton’s mission is to improve the quality of life and the environment through the use of power management technologies and services. We provide sustainable solutions that help our customers effectively manage electrical, hydraulic and mechanical power – more safely, more efficiently and more reliably. Eaton has approximately 101,000 employees in 60 countries and sells products to customers in more than 175 countries.

The consolidated financial statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States. Preparation of the consolidated financial statements requires management to make estimates and assumptions that affect amounts reported in the consolidated financial statements and notes. Actual results could differ from these estimates. Management has evaluated subsequent events through the date the consolidated financial statements were filed with the Securities Exchange Commission.

Consolidation Policy

The consolidated financial statements include the accounts of Eaton and all subsidiaries and other entities it controls. Intercompany transactions and balances have been eliminated. The equity method of accounting is used for investments in associate companies where the Company has significant influence and generally a 20% to 50% ownership interest. Equity investments are evaluated for impairment whenever events or circumstances indicate the book value of the investment exceeds fair value. An impairment would exist if there is an other-than-temporary decline in value. Income from equity investments is reported in Other (income) expense - net. Eaton does not have off-balance sheet arrangements or financings with unconsolidated entities.

Foreign Currency Translation

Eaton's functional currency is United States Dollars (USD). The functional currency for most subsidiaries is their local currency. Financial statements for these subsidiaries are translated at year-end exchange rates as to assets and liabilities and weighted-average exchange rates as to revenues and expenses. The resulting translation adjustments are recognized in Accumulated other comprehensive loss.

Adoption of ASU 2016-02 [Policy Text Block]

Eaton adopted Accounting Standard Update 2016-02, Leases (Topic 842), and related amendments, in the first quarter of 2019 using the optional transition method and has not restated prior periods. The Company elected to use the package of practical expedients permitted under the transition guidance within the new standard, which among other things, allowed the carry forward of historical lease classification of existing leases. The Company recorded a cumulative-effect adjustment of less than $1 to retained earnings as of January 1, 2019. Additionally, the adoption of the new standard resulted in the recording of lease assets and lease liabilities for operating leases of $435 and $446, respectively, as of January 1, 2019. The adoption of this standard did not have a material impact to the Consolidated Statements of Income or Cash Flows.

Adoption of ASU 2017-12 [Policy Text Block]

Eaton adopted Accounting Standard Update 2017-12, Derivatives and Hedging (Topic 815) - Targeted Improvements to Accounting for Hedging Activities, in the first quarter 2019 using the modified retrospective approach for hedge instruments that existed at the date of adoption. ASU 2017-12 is intended to better align the Company's risk management activities with financial reporting for hedging relationships. The standard eliminates the requirement to separately measure and report hedge ineffectiveness, expands the ability to hedge specific risk components, and generally requires the change in value of the hedge instrument and hedged item to be presented in the same income statement line. The new disclosure requirements were applied on a prospective basis and comparative information has not been restated. The adoption of this standard did not have a material impact on the consolidated financial statements.

Adoption of ASU 2016-13 [Policy Text Block]

Eaton adopted Accounting Standards Update 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, in the first quarter of 2020. This standard introduces new guidance for accounting for credit losses on receivables. The Company did not recognize a cumulative-effect adjustment to retained earnings as of January 1, 2020, as the adoption of this standard did not have a material impact on the consolidated financial statements.

Revenue Recognition

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.

Goodwill and Indefinite Life Intangible Assets

Goodwill and Indefinite Life Intangible Assets

Goodwill is evaluated annually for impairment as of July 1 using either a quantitative or qualitative analysis. Goodwill is tested for impairment at the reporting unit level, which is equivalent to Eaton's operating segments and based on the net assets for each segment, including goodwill and intangible assets. Goodwill is assigned to each operating segment, as this represents the lowest level that constitutes a business and is the level at which management regularly reviews the operating results. The Company performs a quantitative analysis using a discounted cash flow model and other valuation techniques, but may elect to perform a qualitative analysis. Additionally, goodwill is evaluated for impairment whenever an event occurs or circumstances change that would indicate that it is more likely than not that the fair value of an operating segment is less than its carrying amount.

The annual goodwill impairment test was performed using a qualitative analysis in 2019 and 2018, except for the Hydraulics segment which used a quantitative analysis in 2019. A qualitative analysis is performed by assessing certain trends and factors, including projected market outlook and growth rates, forecasted and actual sales and operating profit margins, discount rates, industry data, and other relevant qualitative factors. These trends and factors are compared to, and based on, the assumptions used in the most recent quantitative analysis performed for each reporting unit. The results of the qualitative analyses did not indicate a need to perform quantitative analysis.

Goodwill impairment testing was also performed using quantitative analyses in 2019 as a result of the Lighting business being classified as held for sale as discussed in Note 2, and in 2018 for the Electrical Products, Vehicle and eMobility segments due to a reorganization of the Company’s businesses resulting in the creation of the eMobility segment. The Company used the relative fair value method to reallocate goodwill.

Quantitative analyses were performed by estimating the fair value for each reporting unit using a discounted cash flow model, which considered forecasted cash flows discounted at an estimated weighted-average cost of capital. The forecasted cash flows were based on the Company's long-term operating plan and a terminal value was used to estimate the operating segment's cash flows beyond the period covered by the operating plan. The weighted-average cost of capital is an estimate of the overall after-tax rate of return required by equity and debt market holders of a business enterprise. These analyses require the exercise of judgments, including judgments about appropriate discount rates, perpetual growth rates, revenue growth, and margin assumptions of the respective reporting unit. Sensitivity analyses were performed around certain of these assumptions in order to assess the reasonableness of the assumptions and the resulting estimated fair values.

Based on these analyses performed in 2019 and 2018, the fair value of Eaton's reporting units continue to substantially exceed their respective carrying amounts and thus, no impairment exists.

Indefinite life intangible assets consist of certain trademarks. They are evaluated annually for impairment as of July 1 using either a quantitative or qualitative analysis to determine whether their fair values exceed their respective carrying amounts. Indefinite life intangible asset impairment testing for 2019 and 2018 was performed using a quantitative analysis. The Company determines the fair value of these assets using a royalty relief methodology similar to that employed when the associated assets were acquired, but using updated estimates of future sales, cash flows and profitability. Additionally, indefinite life intangible assets are evaluated for impairment whenever an event occurs or circumstances change that would indicate that it is more likely than not that the asset is impaired. For 2019 and 2018, the fair value of indefinite lived intangible assets exceeded the respective carrying value.

For additional information about goodwill and other intangible assets, see Note 4.

Leases

Leases

The Company determines if an arrangement is a lease at inception. Operating lease assets and liabilities are recognized at the commencement date of the lease based on the present value of lease payments over the lease term. Lease assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. As most leases do not provide an implicit interest rate, Eaton uses its incremental borrowing rate based on the information available at the lease commencement date in determining the present value of lease payments. The length of a lease term includes options to extend or terminate the lease when it is reasonably certain that the Company will exercise those options. The Company made an accounting policy election to not recognize lease assets or liabilities for leases with a term of 12 months or less. Additionally, when accounting for leases, the Company combines payments for leased assets, related services and other components of a lease.

Other Long-Lived Assets

Other Long-Lived Assets

Depreciation and amortization for property, plant and equipment, and intangible assets subject to amortization, are generally computed by the straight-line method and included in Cost of products sold, Selling and administrative expense, and Research and development expense, as appropriate. Cost of buildings are depreciated generally over 40 years and machinery and equipment over 3 to 10 years. At December 31, 2019, the weighted-average amortization period for intangible assets subject to amortization was 18 years for patents and technology; 17 years for customer relationships; and 17 years for certain trademarks. Software is generally amortized up to a life of 15 years.

Other long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate the carrying amount may not be recoverable. Upon indications of impairment, assets and liabilities are grouped at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities. The asset group would be considered impaired when the estimated future net undiscounted cash flows generated by the asset group are less than its carrying value. Determining asset groups and underlying cash flows requires the use of significant judgment.

Retirement Benefits Plans

Retirement Benefits Plans

For the principal pension plans in the United States, Canada, Puerto Rico and the United Kingdom, the Company uses a market-related value of plan assets to calculate the expected return on assets used to determine net periodic benefit costs. The market-related value of plan assets is a calculated value that recognizes changes in the fair value of plan assets over a five year period. All other plans use fair value of plan assets.

Net actuarial gains or losses are amortized to expense on a plan-by-plan basis when they exceed the accounting corridor. The Company’s corridors are set at either 8% or 10%, depending on the plan, of the greater of the plan assets or benefit obligations. Gains or losses outside of the corridor are subject to amortization over an average employee future service period that differs by plan, but is approximately 10 years on a weighted average basis. If most or all of the plan’s participants are no longer actively accruing benefits, the average life expectancy is used.

Asset Retirement Obligations

Asset Retirement Obligations

A conditional asset retirement obligation is recognized at fair value when incurred if the fair value of the liability can be reasonably estimated. Uncertainty about the timing or method of settlement of a conditional asset retirement obligation would be considered in the measurement of the liability when sufficient information exists. Eaton believes that for substantially all of its asset retirement obligations, there is an indeterminate settlement date because the range of time over which the Company may settle the obligation is unknown or cannot be estimated. A liability for these obligations will be recognized when sufficient information is available to estimate fair value.

Income Taxes

Income Taxes

Deferred income tax assets and liabilities are determined based on the difference between the financial statement and tax basis of the respective assets and liabilities, using enacted tax rates in effect for the year when the differences are expected to reverse. Deferred income tax assets are recognized for income tax loss carryforwards and income tax credit carryforwards. Judgment is required in determining and evaluating income tax provisions and valuation allowances for deferred income tax assets. Eaton recognizes an income tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by taxing authorities, based on the technical merits of the position. Eaton evaluates and adjusts these accruals based on changing facts and circumstances. Eaton recognizes interest and penalties related to unrecognized income tax benefits in the provision for income tax expense. Eaton's policy is to release income tax effects from accumulated other comprehensive income when individual units of account are sold, terminated, or extinguished. For additional information about income taxes, see Note 9.

Derivative Financial Instruments and Hedging Activities

Derivative Financial Instruments and Hedging Activities

Eaton uses derivative financial instruments to manage the exposure to the volatility in raw material costs, currency, and interest rates on certain debt. These instruments are marked to fair value in the accompanying Consolidated Balance Sheets. Changes in the fair value of derivative assets or liabilities (i.e., gains or losses) are recognized depending upon the type of hedging relationship and whether an instrument has been designated as a hedge. For those instruments that qualify for hedge accounting, Eaton designates the hedging instrument, based upon the exposure being hedged, as a cash flow hedge, a fair value hedge, or a hedge of a net investment in a foreign operation. Changes in fair value of these instruments that do not qualify for hedge accounting are recognized immediately in net income. See Note 13 for additional information about hedges and derivative financial instruments.

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Derivative Financial Instruments and Hedging Activities

12 Months Ended

Dec. 31, 2019

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, 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 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 gain or loss from the derivative financial instrument is recognized in Accumulated other comprehensive income 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 gain or loss from the derivative financial instrument is recognized in Accumulated other comprehensive income 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 is classified in the same line of the Consolidated Statements of Income as the offsetting loss or gain on the hedged item. The cash flows resulting from these financial instruments are classified in operating activities on the 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.

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 had a carrying value on an after-tax basis of $1,845 and on a pre-tax basis of $623 at December 31, 2019 and 2018, respectively. See Note 6 for additional information about debt.

Interest Rate Risk

Eaton has entered into fixed-to-floating interest rate swaps to manage interest rate risk of certain long-term debt. These interest rate swaps are accounted for as fair value hedges of certain long-term debt. The maturity of the swap corresponds with the maturity of the debt instrument as noted in the table of long-term debt in Note 6. Eaton also entered into several forward starting floating-to-fixed interest rate swaps to manage interest rate risk on a future anticipated debt issuance.

A summary of interest rate swaps outstanding at December 31, 2019, follows:

Fixed-to-Floating Interest Rate Swaps

Notional amount	Fixed interest rate received	Floating interest rate paid	Basis for contracted floating interest rate paid
150	3.88%	4.35%	1 month LIBOR + 2.12%
275	3.47%	3.97%	1 month LIBOR + 1.74%
100	8.10%	8.13%	1 month LIBOR + 5.90%
1,400	2.75%	2.85%	1 month LIBOR + 0.58%
200	3.68%	3.30%	1 month LIBOR + 1.07%
25	7.63%	4.87%	6 month LIBOR + 2.48%
50	7.65%	5.21%	6 month LIBOR + 2.57%
25	5.45%	2.79%	6 month LIBOR + 0.28%

Forward Starting Floating-to-Fixed Interest Rate Swaps

Notional amount		Floating interest rate to be received	Fixed interest rate to be paid	Basis for contracted floating interest rate received
$	50	—%	3.10%	3 month LIBOR + 0.00%
50		—%	3.06%	3 month LIBOR + 0.00%
50		—%	2.80%	3 month LIBOR + 0.00%
50		—%	2.81%	3 month LIBOR + 0.00%
50		—%	2.64%	3 month LIBOR + 0.00%
50		—%	2.64%	3 month LIBOR + 0.00%
50		—%	2.30%	3 month LIBOR + 0.00%
50		—%	2.08%	3 month LIBOR + 0.00%
50		—%	1.77%	3 month LIBOR + 0.00%
50		—%	1.51%	3 month LIBOR + 0.00%

Derivative Financial Statement Impacts

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

	Notional amount		Other  current assets		Other noncurrent assets		Other current liabilities		Other noncurrent liabilities		Type of hedge	Term
December 31, 2019
Derivatives designated as hedges
Fixed-to-floating interest rate swaps	$	2,225	$	—	$	57	$	—	$	—	Fair value	12 months to 15 years
Forward starting floating-to-fixed interest rate swaps	500		—		3		—		42		Cash flow	13 to 33 years
Currency exchange contracts	1,146		14		3		11		6		Cash flow	1 to 36 months
Commodity contracts	9		—		—		—		—		Cash flow	1 to 9 months
Total			$	14	$	63	$	11	$	48
Derivatives not designated as hedges
Currency exchange contracts	$	4,975	$	48			$	13				1 to 12 months
Commodity contracts	3		—				—					1 month
Total			$	48			$	13

December 31, 2018
Derivatives designated as hedges
Fixed-to-floating interest rate swaps	$	2,550	$	—	$	22	$	1	$	26	Fair value	3 months to 16 years
Forward starting floating-to-fixed interest rate swaps	100		—		—		—		3		Cash flow	34 years
Currency exchange contracts	951		19		2		11		8		Cash flow	1 to 36 months
Total			$	19	$	24	$	12	$	37
Derivatives not designated as hedges
Currency exchange contracts	$	3,886	$	40			$	20				1 to 12 months
Total			$	40			$	20

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 receivables, payables 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. For the years ended December 31, 2019 and 2018, $54 of cash inflow and $110 of cash outflow, respectively, resulting from the settlement of these derivatives have been classified in investing activities in the Consolidated Statement of Cash Flows. The net cash flow from the settlement of these derivatives has been presented in operating activities in 2017 and have not been restated as such amounts are not material.

As of December 31, 2019, the volume of outstanding commodity contracts that were entered into to hedge forecasted transactions:

Commodity	December 31, 2019		Term
Copper	2	millions of pounds	1 to 4 months
Gold	2,158	Troy ounces	1 to 9 months

The following amounts were recorded on the Consolidated Balance Sheets related to fixed-to-floating interest rate swaps:

	Carrying amount of the hedged assets (liabilities)			Cumulative amount of fair value hedging adjustment included in the carrying amount of the hedged asset (liabilities) (a)
Location on Consolidated Balance Sheets	December 31, 2019			December 31, 2019
Long-term debt	$	(2,838	)	$	(97	)

^(a) At December 31, 2019, these amounts include the cumulative liability amount of fair value hedging adjustments remaining for which the hedge accounting has been discontinued of $40.

The impact of hedging activities to the Consolidated Statements of Income are as follow:

	2019
	Net Sales			Cost of products sold			Interest expense - net
Amounts from Consolidated Statements of Income	$	21,390		$	14,338		$	236
Gain (loss) on derivatives designated as cash flow hedges
Currency exchange contracts
Hedged item	$	7		$	(12	)	$	—
Derivative designated as hedging instrument	(7		)	12			—
Commodity contracts
Hedged item	$	—		$	—		$	—
Derivative designated as hedging instrument	—			—			—
Gain (loss) on derivatives designated as fair value hedges
Fixed-to-floating interest rate swaps
Hedged item	$	—		$	—		$	(62	)
Derivative designated as hedging instrument	—			—			62

The impact of derivatives not designated as hedges to the Consolidated Statements of Income are as follow:

	Gain (loss) recognized in Consolidated Statements of Income		Consolidated Statements of Income classification
	2019
Gain (loss) on derivatives not designated as hedges
Currency exchange contracts	$	73	Other income - net
Commodity Contracts	—		Cost of products sold
Total	$	73

The impact of derivative and non-derivative instruments designated as hedges to the Consolidated Statements 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
	2019			2018				2019		2018
Derivatives designated as cash flow hedges
Forward starting floating-to-fixed interest rate swaps	$	(36	)	$	(4	)	Interest expense - net	$	—	$	—
Currency exchange contracts	3			(4		)	Net sales and Cost of products sold	5		(16		)
Commodity contracts	—			—			Cost of products sold	—		—
Non-derivative designated as net investment hedges
Foreign currency denominated debt	15			47			Other income - net	—		—
Total	$	(18	)	$	39			$	5	$	(16	)

At December 31, 2019, a gain of $2 of estimated unrealized net gains or losses associated with our cash flow hedges were expected to be reclassified to income from Accumulated other comprehensive loss within the next twelve months. These reclassifications relate to our designated foreign currency and commodity hedges that will mature in the next 12 months.

XML

Business Segment and Geographic Region Information - Identifiable Assets, Capital Expenditures for PPE, and Depreciation of PPE by Segment (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Segment Reporting Information [Line Items]
Total assets	$ 32,805	$ 31,092	$ 32,623
Goodwill	13,456	13,328	13,568
Other intangible assets	4,638	4,846	5,265
Assets held for sale	1,377	0
Capital expenditures for property, plant and equipment	587	565	520
Depreciation of property, plant and equipment	465	473	476
Electrical Products [Member]
Segment Reporting Information [Line Items]
Total assets	2,201	2,451	2,446
Goodwill	6,090	6,562	6,678
Capital expenditures for property, plant and equipment	162	135	130
Depreciation of property, plant and equipment	126	136	138
Electrical Systems and Services [Member]
Segment Reporting Information [Line Items]
Total assets	2,532	2,243	2,141
Goodwill	4,410	4,241	4,311
Capital expenditures for property, plant and equipment	108	101	83
Depreciation of property, plant and equipment	87	85	83
Hydraulics [Member]
Segment Reporting Information [Line Items]
Total assets	1,439	1,473	1,345
Goodwill	1,199	1,212	1,257
Capital expenditures for property, plant and equipment	90	106	96
Depreciation of property, plant and equipment	66	64	61
Aerospace [Member]
Segment Reporting Information [Line Items]
Total assets	1,362	935	938
Goodwill	1,386	941	947
Capital expenditures for property, plant and equipment	47	38	37
Depreciation of property, plant and equipment	27	26	26
Vehicle [Member]
Segment Reporting Information [Line Items]
Total assets	2,145	2,289	2,367
Goodwill	291	292	294
Capital expenditures for property, plant and equipment	127	143	141
Depreciation of property, plant and equipment	102	104	109
eMobility [Member]
Segment Reporting Information [Line Items]
Total assets	141	139	136
Goodwill	80	80	81
Capital expenditures for property, plant and equipment	8	4	4
Depreciation of property, plant and equipment	5	5	5
All Segments [Member]
Segment Reporting Information [Line Items]
Total assets	9,820	9,530	9,373
Capital expenditures for property, plant and equipment	542	527	491
Depreciation of property, plant and equipment	413	420	422
Corporate [Member]
Segment Reporting Information [Line Items]
Total assets	3,514	3,388	4,417
Assets held for sale	1,377	0	0
Capital expenditures for property, plant and equipment	45	38	29
Depreciation of property, plant and equipment	$ 52	$ 53	$ 54

XML

LEASES LEASES (Tables)

12 Months Ended

Dec. 31, 2019

Dec. 31, 2018

Leases [Abstract]

Components of Lease Expense

The components of lease expense follows:

	2019
Operating lease cost	$	166
Finance lease cost:
Amortization of lease assets	5
Interest on lease liabilities	1
Short-term lease cost	46
Variable lease cost	22
Sublease income	(3		)
Total lease cost	$	237

Supplemental Cash Flow Related to Leases

Supplemental cash flow information related to leases follows:

	2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflows - payments on operating leases	$	(168	)
Operating cash outflows - interest payments on finance leases	(1		)
Financing cash outflows - payments on finance lease obligations	(6		)
Lease assets obtained in exchange for new lease obligations, including leases acquired:
Operating leases	$	114
Finance leases	24

Supplemental Balance Sheet Information Related to Leases

Supplemental balance sheet information related to leases follows:

	December 31, 2019
Operating Leases
Operating lease assets	$	436
Other current liabilities	121
Operating lease liabilities	331
Total operating lease liabilities	$	452
Finance Leases
Land and buildings	$	24
Machinery and equipment	18
Accumulated depreciation	(16		)
Net property, plant and equipment	$	26
Current portion of long-term debt	$	6
Long-term debt	21
Total finance lease liabilities	$	27
Weighted-average remaining lease term
Operating leases	5.1 years
Finance leases	6.8 years
Weighted-average discount rate
Operating leases	3.7		%
Finance leases	7.6		%

Lessee, Operating Lease, Liability, Maturity

Maturities of lease liabilities at December 31, 2019 follows:

	Operating Leases		Finance Leases
2020	$	142	$	8
2021	113		8
2022	82		6
2023	56		4
2024	37		2
Thereafter	82		9
Total lease payments	512		37
Less imputed interest	60		10
Total present value of lease liabilities	$	452	$	27

Finance Lease, Liability, Maturity

Maturities of lease liabilities at December 31, 2019 follows:

	Operating Leases		Finance Leases
2020	$	142	$	8
2021	113		8
2022	82		6
2023	56		4
2024	37		2
Thereafter	82		9
Total lease payments	512		37
Less imputed interest	60		10
Total present value of lease liabilities	$	452	$	27

Schedule of Future Minimum Rental Payments for Operating Leases

at December 31, 2018 under noncancelable operating leases, which expire at various dates and in most cases contain renewal options, for each of the next five years and thereafter in the aggregate, follow:

	Operating Leases
2019	$	165
2020	133
2021	106
2022	75
2023	53
Thereafter	110
Total lease commitments	$	642

Rental Expense

A summary of rental expense follows:

2018	$	232
2017	222

XML

Consolidated Balance Sheets - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018
Current assets
Cash	$ 370	$ 283
Short-term investments	221	157
Accounts receivable - net	3,437	3,858
Inventory	2,805	2,785
Assets held for sale	1,377	0
Prepaid expenses and other current assets	518	507
Total current assets	8,728	7,590
Property, plant and equipment
Land and buildings	2,440	2,466
Machinery and equipment	6,266	6,106
Gross property, plant and equipment	8,706	8,572
Accumulated depreciation	(5,210)	(5,105)
Net property, plant and equipment	3,496	3,467
Other noncurrent assets
Goodwill	13,456	13,328
Other intangible assets	4,638	4,846
Operating lease assets	436	0
Deferred income taxes	372	293
Other assets	1,679	1,568
Total assets	32,805	31,092
Current liabilities
Short-term debt	255	414
Current portion of long-term debt	248	339
Accounts payable	2,114	2,130
Accrued compensation	449	457
Liabilities held for sale	325	0
Other current liabilities	1,741	1,814
Total current liabilities	5,132	5,154
Noncurrent liabilities
Long-term debt	7,819	6,768
Pension liabilities	1,462	1,304
Other postretirement benefits liabilities	328	321
Operating lease liabilities	331	0
Deferred income taxes	396	349
Other noncurrent liabilities	1,204	1,054
Total noncurrent liabilities	11,540	9,796
Shareholders’ equity
Ordinary shares (413.3 million outstanding in 2019 and 423.6 million in 2018)	4	4
Capital in excess of par value	12,200	12,090
Retained earnings	8,170	8,161
Accumulated other comprehensive loss	(4,290)	(4,145)
Shares held in trust	(2)	(3)
Total Eaton shareholders’ equity	16,082	16,107
Noncontrolling interests	51	35
Total equity	16,133	16,142
Total liabilities and equity	$ 32,805	$ 31,092

XML

Derivative Financial Instruments and Hedging Activities - Amounts Recorded on Balance Sheet Related to Fixed-to-Floating Interest Rate Swaps (Details) $ in Millions	Dec. 31, 2019 USD ($)
Interest Rate Swap
Derivative [Line Items]
Carrying amount of the hedged assets (liabilities)	$ (2,838)
Long-term debt
Derivative [Line Items]
Discontinued hedge, cumulative adjustment	40
Long-term debt | Interest Rate Swap
Derivative [Line Items]
Cumulative amount of fair value hedging adjustment included in the carrying amount of the hedged asset (liabilities)	$ (97)

XML

Accounts Receivable and Inventory - Narrative (Details) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018
Accounts Receivable and Inventory [Abstract]
Allowance for doubtful accounts	$ 49	$ 55

XML

Debt - Interest Paid on Debt (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Debt Disclosure [Abstract]
Interest paid on debt	$ 279	$ 313	$ 293

XML

Equity-Based Compensation Performance Share Units (Details) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Pretax expense for PSUs	$ 21,000,000	$ 28,000,000	$ 22,000,000
After-tax expense for PSUs	17,000,000	22,000,000	13,000,000
Total compensation cost not yet recognized, PSUs	$ 30,000,000
Non-vested stock options weighted-average period for total compensation expense to be recognized ( in years)	1 year 9 months 18 days
Performance Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Excess tax benefit for equity-based compensation	$ 1,000,000	$ 0	$ 0
Performance Share Unit [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Non-vested stock options weighted-average period for total compensation expense to be recognized ( in years)	1 year 8 months 12 days
Minimum | Performance Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Range of PSU Award	0.00%
Maximum | Performance Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Range of PSU Award	200.00%

XML

Eaton Shareholders' Equity - Net Income per Ordinary Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Equity [Abstract]
Net income attributable to Eaton ordinary shareholders	$ 2,211	$ 2,145	$ 2,985
Weighted-average number of ordinary shares outstanding - diluted (shares)	420.8	436.9	447.0
Less dilutive effect of equity-based compensation	1.8	2.6	2.5
Weighted-average number of ordinary shares outstanding - basic (shares)	419.0	434.3	444.5
Net income per ordinary share - diluted (usd per share)	$ 5.25	$ 4.91	$ 6.68
Net income per ordinary share - basic (usd per share)	$ 5.28	$ 4.93	$ 6.71

XML

Debt - Narrative (Details) € in Millions, $ in Millions					12 Months Ended
	Nov. 07, 2019 USD ($)	May 14, 2019 EUR (€)	May 14, 2019 USD ($)	Nov. 17, 2017 USD ($)	Dec. 31, 2019 USD ($)	Dec. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)	May 14, 2019 USD ($)
Debt Instrument [Line Items]
Payments on borrowings					$ 507	$ 574	$ 1,554
Short-term debt					$ 255	$ 414
Face amount		€ 1,100						$ 1,232
Proceeds from debt		€ 1,097	$ 1,229
Tranche One [Member]
Debt Instrument [Line Items]
Debt instrument, stated interest rate (in percentage)		0.02%						0.02%
Face amount | €		€ 600
Tranche Two [Member]
Debt Instrument [Line Items]
Debt instrument, stated interest rate (in percentage)		0.70%						0.70%
Face amount | €		€ 500
Notes [Member] | 0.70% Euro notes due 2025
Debt Instrument [Line Items]
Debt instrument, stated interest rate (in percentage)					0.70%	0.70%
Notes [Member] | Notes due 2021 [Member]
Debt Instrument [Line Items]
Debt instrument, stated interest rate (in percentage)					3.47%	3.47%
Notes [Member] | 0.02% Euro notes due 2021
Debt Instrument [Line Items]
Debt instrument, stated interest rate (in percentage)					0.02%	0.02%
Notes [Member] | Notes due 2023 [Member]
Debt Instrument [Line Items]
Debt instrument, stated interest rate (in percentage)					3.68%	3.68%
Debenture [Member] | Debentures due 2020 [Member]
Debt Instrument [Line Items]
Debt instrument, stated interest rate (in percentage)					3.875%	3.875%
Senior Notes [Member] | Senior notes due 2024 [Member]
Debt Instrument [Line Items]
Debt instrument, stated interest rate (in percentage)					0.75%	0.75%
Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Credit facility, maximum borrowing capacity					$ 2,000
Revolving Credit Facility [Member] | Refinanced Four-Year Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Credit facility, maximum borrowing capacity	$ 500
Revolving credit facility, term (in years)	4 years
Revolving Credit Facility [Member] | Refinanced Five-Year Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Credit facility, maximum borrowing capacity				$ 750
Revolving credit facility, term (in years)				5 years
Revolving Credit Facility [Member] | Five-Year Revolving Credit Facility, Expires November 7, 2024 [Member]
Debt Instrument [Line Items]
Credit facility, maximum borrowing capacity	$ 750
Revolving credit facility, term (in years)	5 years
Letter of Credit [Member]
Debt Instrument [Line Items]
Credit facility, maximum borrowing capacity					1,027
Letters of credit outstanding, amount					263
UNITED STATES | Commercial Paper [Member]
Debt Instrument [Line Items]
Short-term debt					$ 255
Weighted average interest rate					1.85%

XML

Summary of Significant Accounting Policies - General Information and Basis of Presentation (Details) $ in Millions	12 Months Ended
	Dec. 31, 2019 USD ($)	Dec. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)	Jul. 31, 2017
Accounting Policies [Abstract]
Net sales	$ 21,390	$ 21,609	$ 20,404
Number of Eaton employees	101,000
Countries of operation	60
Countries where products are sold	175
Investments in associate companies [Line Items]
Equity method of accounting, ownership interest (in percentage)				50.00%
Minimum
Investments in associate companies [Line Items]
Equity method of accounting, ownership interest (in percentage)	20.00%
Maximum
Investments in associate companies [Line Items]
Equity method of accounting, ownership interest (in percentage)	50.00%

XML

Acquisition and Divestitures of Businesses Narrative (Details) - USD ($) $ in Millions				1 Months Ended	12 Months Ended
	Dec. 20, 2019	Apr. 15, 2019	Jul. 31, 2017	Jul. 31, 2019	Dec. 31, 2019	Jun. 30, 2019	Dec. 31, 2018	Sep. 30, 2018	Dec. 31, 2017	Oct. 15, 2019
Business Acquisition [Line Items]
Interest in business sold			50.00%
Proceeds from sale of business			$ 600
Gain on sale of business			1,077						$ 1,077
Pre-tax gain on sale of business			533
Revaluation gain			$ 544
Equity method of accounting, ownership interest (in percentage)			50.00%
Gain on sale of business, net			$ 843		$ (66)		$ 0		$ 843
Ulusoy Elektrik Imalat Taahhut ve Ticaret A.S. [Member]
Business Acquisition [Line Items]
Business Acquisition, Percentage of Interests Acquired		82.275%		93.70%
Pro forma revenue								$ 126
Cash purchase price		$ 214
Business Combination, Consideration Transferred				$ 33
Innovative Switchgear Solutions, Inc. (ISG) [Member]
Business Acquisition [Line Items]
Pro forma revenue							$ 18
Souriau-Sunbank Connection Technologies
Business Acquisition [Line Items]
Pro forma revenue						$ 363
Cash purchase price	$ 903
Automotive Fluid Conveyance Business
Business Acquisition [Line Items]
Pre-tax loss on disposal					66
Lighting Business
Business Acquisition [Line Items]
Cash purchase price										$ 1,400
Sales					$ 1,600

XML

Acquisition and Divestitures of Businesses - Pending Acquisition of Power Distribution, Inc. (Details) $ in Millions	12 Months Ended
	Dec. 31, 2019 USD ($)
Power Distribution, Inc.
Business Acquisition [Line Items]
Revenue reported by acquired entity for last annual period	$ 125

XML

Debt Debt (Tables)

12 Months Ended

Dec. 31, 2019

Debt Disclosure [Abstract]

Summary of long-term debt, including the current portion

A summary of long-term debt, including the current portion, follows:

	2019			2018
6.95% notes due 2019 ($300 converted to floating rate by interest rate swap)	$	—		$	300
3.875% debentures due 2020 ($150 converted to floating rate by interest rate swap)	239			239
3.47% notes due 2021 ($275 converted to floating rate by interest rate swap)	300			300
0.02% Euro notes due 2021	674			—
8.10% debentures due 2022 ($100 converted to floating rate by interest rate swap)	100			100
2.75% senior notes due 2022 ($1,400 converted to floating rate by interest rate swap)	1,600			1,600
3.68% notes due 2023 ($200 converted to floating rate by interest rate swap)	300			300
0.75% Euro notes due 2024	617			629
6.50% debentures due 2025	145			145
0.70% Euro notes due 2025	562			—
3.10% senior notes due 2027	700			700
7.65% debentures due 2029 ($50 converted to floating rate by interest rate swap)	200			200
4.00% senior notes due 2032	700			700
5.45% debentures due 2034 ($25 converted to floating rate by interest rate swap)	137			136
5.80% notes due 2037	240			240
4.15% senior notes due 2042	1,000			1,000
3.92% senior notes due 2047	300			300
5.25% to 7.875% notes (maturities ranging from 2024 to 2035, including $25 converted to floating rate by interest rate swap)	165			203
Other	88			15
Total long-term debt	8,067			7,107
Less current portion of long-term debt	(248		)	(339		)
Long-term debt less current portion	$	7,819		$	6,768

Mandatory maturities of long-term debt for each of the next five years

Maturities of long-term debt for each of the next five years follow:

2020	$	248
2021	981
2022	1,704
2023	303
2024	685

Interest paid on debt

Interest paid on debt follows:

2019	$	279
2018	313
2017	293

XML

Derivative Financial Instruments and Hedging Activities - Volume of Outstanding Commodity Contracts (Details) - Commodity contracts	12 Months Ended
	Dec. 31, 2019 ozt lb
Copper
Derivative [Line Items]
Derivative, outstanding commodity contract | lb	2,000,000
Copper | Minimum
Derivative [Line Items]
Derivative, term of contract	1 month
Copper | Maximum
Derivative [Line Items]
Derivative, term of contract	4 months
Gold
Derivative [Line Items]
Derivative, outstanding commodity contract | ozt	2,158
Gold | Minimum
Derivative [Line Items]
Derivative, term of contract	1 month
Gold | Maximum
Derivative [Line Items]
Derivative, term of contract	9 months

XML

Consolidated Balance Sheets Parentheticals - shares shares in Millions	Dec. 31, 2019	Dec. 31, 2018
Statement of Financial Position [Abstract]
Ordinary shares outstanding shares	413.3	423.6

XML

Cover Page - USD ($)
shares in Millions, $ in Billions

12 Months Ended

Dec. 31, 2019

Jan. 31, 2020

Jun. 30, 2019

Cover page.

Document Type

10-K

Document Annual Report

true

Document Period End Date

Dec. 31, 2019

Document Transition Report

false

Entity File Number

000-54863

Entity Registrant Name

EATON CORPORATION plc

Entity Central Index Key

0001551182

Amendment Flag

false

Document Fiscal Year Focus

2019

Document Fiscal Period Focus

FY

Current Fiscal Year End Date

--12-31

Entity Incorporation, State or Country Code

L2

Entity Tax Identification Number

98-1059235

Entity Address, Address Line One

Eaton House,

Entity Address, Address Line Two

30 Pembroke Road,

Entity Address, City or Town

Dublin 4,

Entity Address, Country

IE

Entity Address, Postal Zip Code

D04 Y0C2

City Area Code

+353

Local Phone Number

1637 2900

Title of 12(b) Security

Ordinary shares ($0.01 par value)

Trading Symbol

ETN

Security Exchange Name

NYSE

Entity Well-known Seasoned Issuer

Yes

Entity Voluntary Filers

No

Entity Current Reporting Status

Yes

Entity Interactive Data Current

Yes

Entity Filer Category

Large Accelerated Filer

Entity Small Business

false

Entity Emerging Growth Company

false

Entity Shell Company

false

Entity Public Float

$ 35.0

Entity Ordinary Shares, Shares Outstanding

413.4

Documents Incorporated by Reference

Portions of the Proxy Statement for the 2020 annual shareholders meeting are incorporated by reference into Part III.

XML

Derivative Financial Instruments and Hedging Activities - Amounts Recognized in Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Amounts recognized in accumulated other comprehensive income
Cash flow hedge gain (loss) to be reclassified within the next twelve months	$ (2)
Other income - net | Net Investment Hedging
Amounts recognized in accumulated other comprehensive income
Gain (loss) recognized in other comprehensive (loss) income	15	$ 47
Gain (loss) reclassified in accumulated other comprehensive (loss) income	0	0
Total | Cash Flow Hedging
Amounts recognized in accumulated other comprehensive income
Total, gain (loss) on derivative and net investment hedge recognized in other comprehensive (loss) income	(18)	39
Total, gain (loss) on derivative and net investment hedge recognized in accumulated other comprehensive (loss) income	5	(16)
Forward Starting Floating-to-Fixed Interest Rate Swap | Interest expense - net | Cash Flow Hedging
Amounts recognized in accumulated other comprehensive income
Gain (loss) recognized in other comprehensive (loss) income	(36)	(4)
Gain (loss) reclassified from Accumulated other comprehensive loss	0	0
Currency exchange contracts | Net sales and Cost of products sold | Cash Flow Hedging
Amounts recognized in accumulated other comprehensive income
Gain (loss) recognized in other comprehensive (loss) income	3	(4)
Gain (loss) reclassified from Accumulated other comprehensive loss	5	(16)
Commodity contracts | Cost of products sold | Cash Flow Hedging
Amounts recognized in accumulated other comprehensive income
Gain (loss) recognized in other comprehensive (loss) income	0	0
Gain (loss) reclassified from Accumulated other comprehensive loss	$ 0	$ 0

XML

Acquisition and Divestitures of Businesses

12 Months Ended

Dec. 31, 2019

Business Combinations [Abstract]

Sale and Acquisition of Businesses

ACQUISITIONS AND DIVESTITURES OF BUSINESSES

Sale of heavy-duty and medium-duty commercial vehicle automated transmission business

On July 31, 2017, Eaton sold a 50% interest in its heavy-duty and medium-duty commercial vehicle automated transmission business for $600 in cash to Cummins, Inc. The new joint venture is named Eaton Cummins Automated Transmission Technologies (ECATT). In 2017, the Company recognized a pre-tax gain of $1,077, of which $533 related to the pre-tax gain from the $600 proceeds from the sale and $544 related to the Company’s remaining 50% investment in the joint venture being remeasured to fair value. The after-tax gain was $843. The fair value is based on the price paid to Eaton for the 50% interest sold to Cummins, Inc. and further supported by a discounted cash flow model. Eaton accounts for its investment on the equity method of accounting.

Acquisition of controlling interest of Ulusoy Elektrik Imalat Taahhut ve Ticaret A.S.

On April 15, 2019, Eaton completed the acquisition of an 82.275% controlling interest in Ulusoy Elektrik Imalat Taahhut ve Ticaret A.S. (Ulusoy Elektrik), a leading manufacturer of electrical switchgear based in Ankara, Turkey, with a primary focus on medium voltage solutions for industrial and utility customers. Its sales for the 12 months ended September 30, 2018 were $126. The purchase price for the shares was $214 on a cash and debt free basis. As required by the Turkish capital markets legislation, Eaton filed an application to execute a mandatory tender offer for the remaining shares shortly after the transaction closed. During the tender offer, Eaton purchased additional shares for $33 through July 2019 to increase its ownership interest to 93.7%. Ulusoy Elektrik is reported within the Electrical Systems and Services business segment.

Acquisition of Innovative Switchgear Solutions, Inc.

On July 19, 2019, Eaton acquired Innovative Switchgear Solutions, Inc. (ISG), a specialty manufacturer of medium-voltage electrical equipment serving the North American utility, commercial and industrial markets. Its 2018 sales were approximately $18. ISG is reported within the Electrical Systems and Services business segment.

Acquisition of Souriau-Sunbank Connection Technologies

On December 20, 2019, Eaton acquired the Souriau-Sunbank Connection Technologies (Souriau-Sunbank) business of TransDigm Group Inc. for a cash purchase price of $903, net of cash received. Headquartered in Versailles, France, Souriau-Sunbank is a global leader in highly engineered electrical interconnect solutions for harsh environments in the aerospace, defense, industrial, energy, and transport markets. Its sales for the 12 months ended June 30, 2019 were $363. Souriau-Sunbank is reported within the Aerospace business segment.

The acquisition of Souriau-Sunbank has been accounted for using the acquisition method of accounting which requires the assets acquired and liabilities assumed be recognized at their respective fair values on the acquisition date. The table below summarizes the preliminary estimated fair values of the assets acquired and liabilities assumed on the acquisition date. These preliminary estimates will be revised during the measurement period as third-party valuations are received and finalized, further information becomes available and additional analyses are performed, and these differences could have a material impact on Eaton's preliminary purchase price allocation.

	December 20, 2019
Accounts Receivables	$	60
Inventory	121
Prepaid expenses and other current assets	5
Property, plant and equipment	101
Other intangible assets	385
Other assets	8
Accounts payable	(34		)
Other current liabilities	(51		)
Other noncurrent liabilities	(130		)
Total identifiable net assets	465
Noncontrolling interests	(4		)
Goodwill	442
Total consideration, net of cash received	$	903

Goodwill is calculated as the excess of the consideration transferred over the net assets recognized and represents the anticipated synergies of acquiring Souriau-Sunbank. Goodwill recognized as a result of the acquisition is not deductible for tax purposes. Other intangible assets of $385 are expected to include customer relationships, trademarks and technology. Given the timing of the acquisition, Eaton utilized a benchmarking approach based on similar acquisitions to determine the preliminary fair values for intangible assets. See Note 4 for additional information about goodwill and other intangible assets.

The Company incurred $2 of acquisition related transaction costs in 2019 for Souriau-Sunbank that were included in Selling and administrative expense.

Eaton’s Consolidated Financial Statements include Souriau-Sunbank’s results of operations, including sales of $3, from the date of the acquisition through December 31, 2019.

Sale of Automotive Fluid Conveyance business

On December 31, 2019, Eaton sold its Automotive Fluid Conveyance Business. The transaction resulted in a pre-tax loss of $66 which was recorded in Other expense (income) - net. This business was reported within the Vehicle business segment.

Pending Sale of Lighting business

On October 15, 2019, Eaton entered into an agreement to sell its Lighting business to Signify N.V. for a cash purchase price of $1.4 billion. The Lighting business, which had sales of $1.6 billion in 2019 as part of the Electrical Products business segment, serves customers in commercial, industrial, residential and municipal markets. During the fourth quarter of 2019, the Company determined the Lighting business met the criteria to be classified as held for sale. Therefore, its assets and liabilities have been presented as held for sale in the Consolidated Balance Sheet as of December 31, 2019. Assets and liabilities classified as held for sale are measured at the lower of carrying value or fair value less costs to sell. There was no write-down as fair value of the Lighting business assets less costs to sell exceeded carrying value. Depreciation and amortization expense is not recorded for the period in which Other long-lived assets are classified as held for sale.

The Company used the relative fair value method to allocate goodwill to the Lighting business. The fair values of the Electrical Products business segment and Lighting business were estimated based on a combination of the price paid to Eaton by Signify N.V. and a discounted cash flow model. The model includes estimates of future cash flows, future growth rates, terminal value amounts, and the applicable weighted-average cost of capital used to discount those estimated cash flows. The weighted-average cost of capital is an estimate of the overall after-tax rate of return required by equity and debt market holders of a business enterprise. These analyses require the exercise of judgments, including judgments about appropriate discount rates, perpetual growth rates, revenue growth, and margin assumptions.

The assets and liabilities of the Lighting business classified as held for sale at December 31, 2019 are as follows:

Accounts receivable - net	$	220
Inventory	161
Prepaid expenses and other current assets	10
Net property, plant and equipment	155
Goodwill	470
Other intangible assets	330
Operating lease assets	25
Other noncurrent assets	6
Assets held for sale - current	$	1,377
Accounts payable	$	184
Accrued compensation	7
Other current liabilities	102
Pension liabilities	3
Operating lease liabilities	17
Deferred income taxes	(1		)
Other noncurrent liabilities	13
Liabilities held for sale - current	$	325

The Lighting business did not meet the criteria to be classified as discontinued operations as the sale does not represent a strategic shift that will have a major effect on the Company's operations. The transaction is subject to customary closing conditions and regulatory approvals and is expected to close in the first quarter of 2020.

Pending Sale of Hydraulics business

On January 21, 2020, Eaton entered into an agreement to sell its Hydraulics business to Danfoss A/S, a Danish industrial company, for $3.3 billion in cash. Eaton’s Hydraulics business, which accounted for 86% of Eaton’s Hydraulics segment revenue in 2019, is a global leader in hydraulics components, systems, and services for industrial and mobile equipment. The business had sales of $2.2 billion in 2019. Eaton is retaining the Filtration and Golf Grip businesses currently reported in the company’s Hydraulics segment. Eaton expects the Hydraulics business to be classified as held for sale during the first quarter of 2020. The Hydraulics business did not meet the criteria to be classified as discontinued operations as the sale does not represent a strategic shift that will have a major effect on the Company's operations. The transaction is subject to customary closing conditions and regulatory approvals and is expected to close by the end of 2020.

Acquisition of Power Distribution, Inc.

On February 25, 2020, Eaton completed the acquisition of Power Distribution, Inc. a leading supplier of mission critical power distribution, static switching, and power monitoring equipment and services for data centers and industrial and commercial customers. The company is headquartered in Richmond, Virginia, and had 2019 sales of $125. Power Distribution, Inc. will be reported within the Electrical Systems and Services business segment.

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Acquisition and Divestitures of Businesses Acquisition and Divestitures of Businesses (Tables)

12 Months Ended

Dec. 31, 2019

Business Combinations [Abstract]

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed

The table below summarizes the preliminary estimated fair values of the assets acquired and liabilities assumed on the acquisition date. These preliminary estimates will be revised during the measurement period as third-party valuations are received and finalized, further information becomes available and additional analyses are performed, and these differences could have a material impact on Eaton's preliminary purchase price allocation.

	December 20, 2019
Accounts Receivables	$	60
Inventory	121
Prepaid expenses and other current assets	5
Property, plant and equipment	101
Other intangible assets	385
Other assets	8
Accounts payable	(34		)
Other current liabilities	(51		)
Other noncurrent liabilities	(130		)
Total identifiable net assets	465
Noncontrolling interests	(4		)
Goodwill	442
Total consideration, net of cash received	$	903

Disposal Groups, Including Discontinued Operations

The assets and liabilities of the Lighting business classified as held for sale at December 31, 2019 are as follows:

Accounts receivable - net	$	220
Inventory	161
Prepaid expenses and other current assets	10
Net property, plant and equipment	155
Goodwill	470
Other intangible assets	330
Operating lease assets	25
Other noncurrent assets	6
Assets held for sale - current	$	1,377
Accounts payable	$	184
Accrued compensation	7
Other current liabilities	102
Pension liabilities	3
Operating lease liabilities	17
Deferred income taxes	(1		)
Other noncurrent liabilities	13
Liabilities held for sale - current	$	325

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Accounts Receivable and Inventory

12 Months Ended

Dec. 31, 2019

Accounts Receivable and Inventory [Abstract]

Inventory

ACCOUNTS RECEIVABLE AND INVENTORY

Accounts Receivable

Eaton performs ongoing credit evaluation of its customers and maintains sufficient allowances for potential credit losses. The Company evaluates the collectability of its accounts receivable based on the length of time the receivable is past due and any anticipated future write-off based on historic experience. Accounts receivable balances are written off against an allowance for doubtful accounts after a final determination of uncollectability has been made. Accounts receivable are net of an allowance for doubtful accounts of $49 and $55 at December 31, 2019 and 2018.

Inventory

Inventory is carried at lower of cost or net realizable value using the first-in, first-out (FIFO) method. Cost components include raw materials, purchased components, direct labor, indirect labor, utilities, depreciation, inbound freight charges, purchasing and receiving costs, inspection costs, warehousing costs, and costs of the distribution network.

The components of inventory follow:

	2019		2018
Raw materials	$	986	$	1,077
Work-in-process	640		500
Finished goods	1,179		1,208
Total inventory	$	2,805	$	2,785

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Business Segment and Geographic Region Information - Business Segment Information (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Business Segment Information
Net sales	$ 21,390	$ 21,609	$ 20,404
Segment operating profit	3,675	3,630	3,214
Amortization of intangible assets	(354)
Interest expense - net	(236)	(271)	(246)
Gain on sale of business	0	0	1,077
Arbitration decision expense	0	(275)	0
Income before income taxes	2,591	2,424	3,368
Income tax expense	378	278	382
Net income	2,213	2,146	2,986
Less net income for noncontrolling interests	(2)	(1)	(1)
Net income attributable to Eaton ordinary shareholders	2,211	2,145	2,985
Electrical Products [Member]
Business Segment Information
Net sales	7,148	7,124	6,917
Segment operating profit	1,390	1,311	1,233
Electrical Systems and Services [Member]
Business Segment Information
Net sales	6,287	6,024	5,666
Segment operating profit	1,027	896	770
Hydraulics [Member]
Business Segment Information
Net sales	2,552	2,756	2,468
Segment operating profit	286	370	288
Aerospace [Member]
Business Segment Information
Net sales	2,044	1,896	1,744
Segment operating profit	495	398	332
Vehicle [Member]
Business Segment Information
Net sales	3,038	3,489	3,326
Segment operating profit	460	611	541
eMobility [Member]
Business Segment Information
Net sales	321	320	283
Segment operating profit	17	44	50
Corporate [Member]
Business Segment Information
Amortization of intangible assets	(367)	(382)	(388)
Interest expense - net	(236)	(271)	(246)
Pension and other postretirement benefits expense	(12)	(1)	(45)
Gain on sale of business	0	0	1,077
Arbitration decision expense	0	(275)	0
Other corporate expense - net	$ (469)	$ (277)	$ (244)

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Derivative Financial Instruments and Hedging Activities - Derivative Financial Instrument Recognized in the Consolidated Balance sheet (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Derivatives, Fair Value [Line Items]
Percentage of intercompany balance sheet exposure	100.00%
Proceeds from (payments for) settlement of currency exchange contracts not designated as hedges - net	$ 54	$ (110)	$ 0
Other current assets [Member]
Derivatives, Fair Value [Line Items]
Derivative Instruments Not Designated as Hedging Instruments, Asset, at Fair Value	48	40
Derivatives designated as hedges
Derivative asset designated as hedging instrument	14	19
Other noncurrent assets [Member]
Derivatives designated as hedges
Derivative asset designated as hedging instrument	63	24
Other current liabilities [Member]
Derivatives, Fair Value [Line Items]
Derivative Instruments Not Designated as Hedging Instruments, Liability, at Fair Value	13	20
Derivatives designated as hedges
Derivative liability designated as hedging instrument	11	12
Other noncurrent liabilities [Member]
Derivatives designated as hedges
Derivative liability designated as hedging instrument	48	37
Non-derivative net investment hedge [Member]
Derivatives, Fair Value [Line Items]
Foreign Currency Note Payable, Noncurrent, after-tax	1,845
Foreign Currency Note Payable, Noncurrent, pre-tax		623
Designated as Hedging Instrument [Member] | Fair Value Hedging | Fixed-to-floating interest rate swaps
Derivatives designated as hedges
Notional amount	2,225	2,550
Designated as Hedging Instrument [Member] | Fair Value Hedging | Fixed-to-floating interest rate swaps | Other current assets [Member]
Derivatives designated as hedges
Derivative asset designated as hedging instrument	0	0
Designated as Hedging Instrument [Member] | Fair Value Hedging | Fixed-to-floating interest rate swaps | Other noncurrent assets [Member]
Derivatives designated as hedges
Derivative asset designated as hedging instrument	57	22
Designated as Hedging Instrument [Member] | Fair Value Hedging | Fixed-to-floating interest rate swaps | Other current liabilities [Member]
Derivatives designated as hedges
Derivative liability designated as hedging instrument	0	1
Designated as Hedging Instrument [Member] | Fair Value Hedging | Fixed-to-floating interest rate swaps | Other noncurrent liabilities [Member]
Derivatives designated as hedges
Derivative liability designated as hedging instrument	0	26
Designated as Hedging Instrument [Member] | Cash Flow Hedging | Floating-to-fixed interest rate swaps
Derivatives designated as hedges
Notional amount	500	100
Designated as Hedging Instrument [Member] | Cash Flow Hedging | Floating-to-fixed interest rate swaps | Other current assets [Member]
Derivatives designated as hedges
Derivative asset designated as hedging instrument	0	0
Designated as Hedging Instrument [Member] | Cash Flow Hedging | Floating-to-fixed interest rate swaps | Other noncurrent assets [Member]
Derivatives designated as hedges
Derivative asset designated as hedging instrument	3	0
Designated as Hedging Instrument [Member] | Cash Flow Hedging | Floating-to-fixed interest rate swaps | Other current liabilities [Member]
Derivatives designated as hedges
Derivative liability designated as hedging instrument	0	0
Designated as Hedging Instrument [Member] | Cash Flow Hedging | Floating-to-fixed interest rate swaps | Other noncurrent liabilities [Member]
Derivatives designated as hedges
Derivative liability designated as hedging instrument	42	3
Designated as Hedging Instrument [Member] | Cash Flow Hedging | Currency exchange contracts
Derivatives designated as hedges
Notional amount	1,146	951
Designated as Hedging Instrument [Member] | Cash Flow Hedging | Currency exchange contracts | Other current assets [Member]
Derivatives designated as hedges
Derivative asset designated as hedging instrument	14	19
Designated as Hedging Instrument [Member] | Cash Flow Hedging | Currency exchange contracts | Other noncurrent assets [Member]
Derivatives designated as hedges
Derivative asset designated as hedging instrument	3	2
Designated as Hedging Instrument [Member] | Cash Flow Hedging | Currency exchange contracts | Other current liabilities [Member]
Derivatives designated as hedges
Derivative liability designated as hedging instrument	11	11
Designated as Hedging Instrument [Member] | Cash Flow Hedging | Currency exchange contracts | Other noncurrent liabilities [Member]
Derivatives designated as hedges
Derivative liability designated as hedging instrument	6	8
Designated as Hedging Instrument [Member] | Cash Flow Hedging | Commodity contracts
Derivatives designated as hedges
Notional amount	9
Designated as Hedging Instrument [Member] | Cash Flow Hedging | Commodity contracts | Other current assets [Member]
Derivatives designated as hedges
Derivative asset designated as hedging instrument	0
Designated as Hedging Instrument [Member] | Cash Flow Hedging | Commodity contracts | Other noncurrent assets [Member]
Derivatives designated as hedges
Derivative asset designated as hedging instrument	0
Designated as Hedging Instrument [Member] | Cash Flow Hedging | Commodity contracts | Other current liabilities [Member]
Derivatives designated as hedges
Derivative liability designated as hedging instrument	0
Designated as Hedging Instrument [Member] | Cash Flow Hedging | Commodity contracts | Other noncurrent liabilities [Member]
Derivatives designated as hedges
Derivative liability designated as hedging instrument	0
Not Designated as Hedging Instrument [Member] | Currency exchange contracts
Derivatives designated as hedges
Notional amount	4,975	3,886
Not Designated as Hedging Instrument [Member] | Currency exchange contracts | Other current assets [Member]
Derivatives, Fair Value [Line Items]
Derivative Instruments Not Designated as Hedging Instruments, Asset, at Fair Value	48	40
Not Designated as Hedging Instrument [Member] | Currency exchange contracts | Other current liabilities [Member]
Derivatives, Fair Value [Line Items]
Derivative Instruments Not Designated as Hedging Instruments, Liability, at Fair Value	13	$ 20
Not Designated as Hedging Instrument [Member] | Commodity contracts
Derivatives designated as hedges
Notional amount	3
Not Designated as Hedging Instrument [Member] | Commodity contracts | Other current assets [Member]
Derivatives, Fair Value [Line Items]
Derivative Instruments Not Designated as Hedging Instruments, Asset, at Fair Value	0
Not Designated as Hedging Instrument [Member] | Commodity contracts | Other current liabilities [Member]
Derivatives, Fair Value [Line Items]
Derivative Instruments Not Designated as Hedging Instruments, Liability, at Fair Value	$ 0
Minimum | Designated as Hedging Instrument [Member] | Fair Value Hedging | Fixed-to-floating interest rate swaps
Derivatives designated as hedges
Derivative, remaining maturity	12 months	3 months
Minimum | Designated as Hedging Instrument [Member] | Cash Flow Hedging | Floating-to-fixed interest rate swaps
Derivatives designated as hedges
Derivative, remaining maturity	13 years	34 years
Minimum | Designated as Hedging Instrument [Member] | Cash Flow Hedging | Currency exchange contracts
Derivatives designated as hedges
Derivative, remaining maturity	1 month	1 month
Minimum | Designated as Hedging Instrument [Member] | Cash Flow Hedging | Commodity contracts
Derivatives designated as hedges
Derivative, remaining maturity	1 month
Minimum | Not Designated as Hedging Instrument [Member] | Currency exchange contracts
Derivatives designated as hedges
Derivative, remaining maturity	1 month	1 month
Minimum | Not Designated as Hedging Instrument [Member] | Commodity contracts
Derivatives designated as hedges
Derivative, remaining maturity	1 month
Maximum | Designated as Hedging Instrument [Member] | Fair Value Hedging | Fixed-to-floating interest rate swaps
Derivatives designated as hedges
Derivative, remaining maturity	15 years	16 years
Maximum | Designated as Hedging Instrument [Member] | Fair Value Hedging | Floating-to-fixed interest rate swaps
Derivatives designated as hedges
Derivative, remaining maturity	33 years	34 years
Maximum | Designated as Hedging Instrument [Member] | Cash Flow Hedging | Currency exchange contracts
Derivatives designated as hedges
Derivative, remaining maturity	36 months	36 months
Maximum | Designated as Hedging Instrument [Member] | Cash Flow Hedging | Commodity contracts
Derivatives designated as hedges
Derivative, remaining maturity	9 months
Maximum | Not Designated as Hedging Instrument [Member] | Currency exchange contracts
Derivatives designated as hedges
Derivative, remaining maturity	12 months	12 months
Maximum | Not Designated as Hedging Instrument [Member] | Commodity contracts
Derivatives designated as hedges
Derivative, remaining maturity	1 month

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Retirement Benefits Plans (Tables)

12 Months Ended

Dec. 31, 2019

Retirement Benefits [Abstract]

Obligations and funded status

Obligations and Funded Status

	United States pension liabilities						Non-United States pension liabilities						Other postretirement liabilities
	2019			2018			2019			2018			2019			2018
Funded status
Fair value of plan assets	$	3,433		$	3,068		$	1,903		$	1,560		$	23		$	37
Benefit obligations	(4,028		)	(3,633		)	(2,747		)	(2,285		)	(378		)	(378		)
Funded status	$	(595	)	$	(565	)	$	(844	)	$	(725	)	$	(355	)	$	(341	)
Amounts recognized in the Consolidated    Balance Sheets
Non-current assets	$	—		$	—		$	73		$	58		$	—		$	—
Current liabilities	(23		)	(20		)	(27		)	(24		)	(27		)	(20		)
Non-current liabilities	(572		)	(545		)	(890		)	(759		)	(328		)	(321		)
Total	$	(595	)	$	(565	)	$	(844	)	$	(725	)	$	(355	)	$	(341	)
Amounts recognized in Accumulated other    comprehensive loss (pre-tax)
Net actuarial (gain) loss	$	1,096		$	1,153		$	879		$	683		$	(8	)	$	(20	)
Prior service cost (credit)	7			7			25			27			(17		)	(32		)
Total	$	1,103		$	1,160		$	904		$	710		$	(25	)	$	(52	)

Change in benefit obligations

Change in Benefit Obligations

	United States pension liabilities						Non-United States pension liabilities						Other postretirement liabilities
	2019			2018			2019			2018			2019			2018
Balance at January 1	$	3,633		$	3,961		$	2,285		$	2,399		$	378		$	448
Service cost	91			100			58			63			2			2
Interest cost	138			122			57			52			14			13
Actuarial (gain) loss	435			(272		)	315			(16		)	14			(39		)
Gross benefits paid	(270		)	(282		)	(102		)	(112		)	(60		)	(67		)
Currency translation	—			—			47			(124		)	2			(4		)
Plan amendments	1			4			—			21			1			—
Acquisitions and divestitures	—			—			(4		)	—			—			—
Benefit obligation reclassified to held for sale	—			—			(4		)	—			—			—
Other	—			—			95			2			27			25
Balance at December 31	$	4,028		$	3,633		$	2,747		$	2,285		$	378		$	378
Accumulated benefit obligation	$	3,883		$	3,506		$	2,592		$	2,175

Change in plan assets

Change in Plan Assets

	United States pension liabilities						Non-United States pension liabilities						Other postretirement liabilities
	2019			2018			2019			2018			2019			2018
Balance at January 1	$	3,068		$	3,585		$	1,560		$	1,727		$	37		$	55
Actual return on plan assets	618			(252		)	230			(72		)	5			—
Employer contributions	17			17			102			109			15			25
Gross benefits paid	(270		)	(282		)	(102		)	(112		)	(60		)	(67		)
Currency translation	—			—			58			(93		)	—			—
Other	—			—			55			1			26			24
Balance at December 31	$	3,433		$	3,068		$	1,903		$	1,560		$	23		$	37

Components of pension plans with accumulated benefit obligations in excess of plan assets

The components of pension plans with an accumulated benefit obligation in excess of plan assets at December 31 follow:

	United States pension liabilities				Non-United States pension liabilities
	2019		2018		2019		2018
Projected benefit obligation	$	4,028	$	3,633	$	1,107	$	905
Accumulated benefit obligation	3,883		3,506		1,028		853
Fair value of plan assets	3,433		3,068		242		158

Changes in pension and other postretirement benefits liabilities recognized in Accumulated other comprehensive loss

Changes in pension and other postretirement benefit liabilities recognized in Accumulated other comprehensive loss follow:

	United States pension liabilities						Non-United States pension liabilities						Other postretirement liabilities
	2019			2018			2019			2018			2019			2018
Balance at January 1	$	1,160		$	1,063		$	710		$	604		$	(52	)	$	(27	)
Prior service cost arising during the year	1			4			—			21			1			—
Net loss (gain) arising during the year	52			233			231			161			11			(36		)
Currency translation	—			—			15			(35		)	1			(2		)
Less amounts included in expense during the year	(110		)	(140		)	(52		)	(41		)	14			13
Net change for the year	(57		)	97			194			106			27			(25		)
Balance at December 31	$	1,103		$	1,160		$	904		$	710		$	(25	)	$	(52	)

Benefits expense

Benefits Expense

	United States pension benefit expense									Non-United States pension benefit expense									Other postretirement benefits expense
	2019			2018			2017			2019			2018			2017			2019			2018			2017
Service cost	$	91		$	100		$	96		$	58		$	63		$	71		$	2		$	2		$	3
Interest cost	138			122			123			57			52			55			14			13			14
Expected return on plan assets	(235		)	(253		)	(244		)	(106		)	(105		)	(94		)	(2		)	(3		)	(4		)
Amortization	62			94			83			38			39			51			(14		)	(13		)	(13		)
	56			63			58			47			49			83			—			(1		)	—
Settlements, curtailments and special termination benefits	48			46			62			14			2			5			—			—			—
Total expense	$	104		$	109		$	120		$	61		$	51		$	88		$	—		$	(1	)	$	—

Estimated pretax net amounts that will be recognized from Accumulated other comprehensive loss into net periodic benefit cost

The estimated pre-tax net amounts that will be recognized from Accumulated other comprehensive loss into net periodic benefit cost in 2020 follow:

	United States pension liabilities		Non-United States pension liabilities		Other postretirement liabilities
Actuarial loss	$	144	$	59	$	1
Prior service cost (credit)	1		3		(14		)
Total	$	145	$	62	$	(13	)

Assumptions used to determine other postretirement obligations and expense

Pension Plans

	United States pension plans						Non-United States pension plans
	2019		2018		2017		2019		2018		2017
Assumptions used to determine benefit obligation at year-end
Discount rate	3.22	%	4.28	%	3.64	%	2.02	%	2.83	%	2.62	%
Rate of compensation increase	3.14	%	3.14	%	3.15	%	3.05	%	3.10	%	3.11	%
Assumptions used to determine expense
Discount rate used to determine benefit obligation	4.28	%	3.64	%	4.12	%	2.83	%	2.62	%	2.63	%
Discount rate used to determine service cost	4.39	%	3.78	%	4.31	%	4.02	%	3.54	%	3.38	%
Discount rate used to determine interest cost	3.94	%	3.19	%	3.40	%	2.56	%	2.31	%	2.34	%
Expected long-term return on plan assets	7.25	%	7.52	%	7.90	%	6.42	%	6.40	%	6.30	%
Rate of compensation increase	3.14	%	3.15	%	3.15	%	3.10	%	3.11	%	3.13	%

Assumptions used to determine other postretirement benefits obligations and expense

Assumptions used to determine other postretirement benefits obligations and expense follow:

	Other postretirement benefits plans
	2019		2018		2017
Assumptions used to determine benefit obligation at year-end
Discount rate	3.13	%	4.23	%	3.55	%
Health care cost trend rate assumed for next year	6.95	%	7.10	%	8.25	%
Ultimate health care cost trend rate	4.75	%	4.75	%	4.75	%
Year ultimate health care cost trend rate is achieved	2029		2028		2027
Assumptions used to determine expense
Discount rate used to determine benefit obligation	4.23	%	3.55	%	3.96	%
Discount rate used to determine service cost	4.29	%	3.62	%	4.11	%
Discount rate used to determine interest cost	3.85	%	3.04	%	3.18	%
Initial health care cost trend rate	7.10	%	8.25	%	7.35	%
Ultimate health care cost trend rate	4.75	%	4.75	%	4.75	%
Year ultimate health care cost trend rate is achieved	2028		2027		2026

1-percentage change in the assumed health care cost trend rates

A 1-percentage point change in the assumed health care cost trend rates would have the following effects:

	1% increase		1% decrease
Effect on total service and interest cost	$	1	$	—
Effect on other postretirement liabilities	10		(8		)

Employer contributions to pension plans

Contributions to pension plans that Eaton expects to make in 2020, and made in 2019, 2018 and 2017, follow:

	2020		2019		2018		2017
United States plans	$	24	$	17	$	17	$	374
Non-United States plans	104		102		109		99
Total contributions	$	128	$	119	$	126	$	473

Expected pension and other postretirement benefit payments and expected subsidy

For other postretirement benefits liabilities, the expected subsidy receipts related to the Medicare Prescription Drug, Improvement, and Modernization Act of 2003 would reduce the gross payments listed below.

	Estimated United States pension payments		Estimated non-United States pension payments		Estimated other postretirement benefit payments
					Gross		Medicare prescription drug subsidy
2020	$	316	$	96	$	36	$	(1	)
2021	313		96		31		(1		)
2022	307		100		31		—
2023	306		103		28		—
2024	299		106		26		—
2025 - 2029	1,436		594		112		(1		)

Fair value of pension plan assets

A summary of the fair value of pension plan assets at December 31, 2019 and 2018, follows:

	Total			Quoted prices in active markets for identical assets (Level 1)		Other observable inputs (Level 2)		Unobservable inputs (Level 3)1
2019
Common collective trusts
Non-United States equity and global equities	$	606		$	—	$	606	$	—
United States equity	74			—		74		—
Fixed income	571			—		571		—
Fixed income securities	885			—		885		—
United States treasuries	330			330		—		—
Bank loans	104			—		104		—
Real estate	299			225		13		61
Cash equivalents	196			67		129		—
Exchange traded funds	79			79		—		—
Other	167			—		38		129
Common collective and other trusts measured at net asset value	2,108
Money market funds measured at net asset value	6
Pending purchases and sales of plan assets, and interest     receivable	(89		)
Total pension plan assets	$	5,336		$	701	$	2,420	$	190

¹ These pension plan assets include private real estate, private credit and private equity funds that generally have redemption notice periods of six months or longer, and are not eligible for redemption until the underlying assets are liquidated or distributed. The Company has unfunded commitments to these funds of approximately $334 at December 31, 2019, which will be satisfied by a reallocation of pension plan assets.

	Total			Quoted prices in active markets for identical assets (Level 1)		Other observable inputs (Level 2)		Unobservable inputs (Level 3)1
2018
Common collective trusts
Non-United States equity and global equities	$	612		$	—	$	612	$	—
United States equity	50			—		50		—
Fixed income	483			—		483		—
Fixed income securities	721			—		721		—
United States treasuries	262			262		—		—
Bank loans	107			—		107		—
Real estate	202			181		—		21
Equity securities	51			51		—		—
Cash equivalents	176			130		46		—
Exchange traded funds	60			60		—		—
Other	90			—		15		75
Common collective and other trusts measured at net asset value	1,833
Money market funds measured at net asset value	5
Pending purchases and sales of plan assets, and interest     receivable	(24		)
Total pension plan assets	$	4,628		$	684	$	2,034	$	96

¹ These pension plan assets include private real estate and private equity funds that generally have redemption notice periods of six months or longer, and are not eligible for redemption until the underlying assets are liquidated or distributed. The Company has unfunded commitments to these funds of approximately $180 at December 31, 2018, which will be satisfied by a reallocation of pension plan assets.

Fair value measurement of plan assets using significant unobservable inputs

The fair value measurement of plan assets using significant unobservable inputs (Level 3) changed during 2018 and 2019 due to the following:

	Real estate			Other		Total
Balance at January 1, 2018	$	19		$	73	$	92
Actual return on plan assets:
Gains (losses) relating to assets still held at year-end	(1		)	—		(1		)
Purchases, sales, settlements - net	3			2		5
Transfers into or out of Level 3	—			—		—
Balance at December 31, 2018	21			75		96
Actual return on plan assets:
Gains (losses) relating to assets still held at year-end	4			12		16
Purchases, sales, settlements - net	36			42		78
Transfers into or out of Level 3	—			—		—
Balance at December 31, 2019	$	61		$	129	$	190

Fair value of other postretirement benefits plan assets

A summary of the fair value of other postretirement benefits plan assets at December 31, 2019 and 2018, follows:

	Total		Quoted prices in active markets for identical assets (Level 1)		Other observable inputs (Level 2)		Unobservable inputs (Level 3)
2019
Cash equivalents	$	5	$	5	$	—	$	—
Common collective and other trusts measured at net asset value	18
Total other postretirement benefits plan assets	$	23	$	5	$	—	$	—

	Total		Quoted prices in active markets for identical assets (Level 1)		Other observable inputs (Level 2)		Unobservable inputs (Level 3)
2018
Cash equivalents	$	6	$	6	$	—	$	—
Common collective and other trusts measured at net asset value	31
Total other postretirement benefits plan assets	$	37	$	6	$	—	$	—

Employer contributions to defined contribution benefit plans, charged to expense

The total contributions related to these plans are charged to expense and were as follows:

2019	$	130
2018	124
2017	114

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Equity-Based Compensation (Tables)

12 Months Ended

Dec. 31, 2019

Share-based Payment Arrangement [Abstract]

Summary of RSU and RSA activity

A summary of the RSU and RSA activity for 2019 follows:

(Restricted stock units and awards in millions)	Number of restricted stock units and awards		Weighted-average fair value per unit and award
Non-vested at January 1	2.1		$	68.56
Granted	0.9		80.59
Vested	(1.2	)	65.45
Forfeited	(0.1	)	76.24
Non-vested at December 31	1.7		$	76.79

Information Related to RSUs and RSAs

Information related to RSUs and RSAs follows:

	2019		2018		2017
Pre-tax expense for RSUs and RSAs	$	57	$	59	$	66
After-tax expense for RSUs and RSAs	45		46		43
Fair value of vested RSUs and RSAs	103		71		73

Schedule of Share-based Payment Award, Performance Share Units (Market-Based), Valuation Assumptions

A summary of the assumptions used in determining fair value of these PSUs follows:

	2019			2018			2017
Expected volatility	21		%	22		%	24		%
Risk-free interest rate	2.42		%	2.38		%	1.46		%
Weighted-average fair value of PSUs granted	$	92.50		$	100.86		$	80.07

(Performance share units in millions)

A summary of these PSUs that vested follows:

(Performance share units in millions)	2019		2018
Percent payout	130	%	116	%
Shares vested	0.3		0.5

A summary of the 2019 activity for these PSUs follows:

(Performance share units in millions)	Number of performance share units		Weighted-average fair value per unit
Non-vested at January 1	0.6		$	89.95
Granted1	0.3		92.50
Adjusted for performance results achieved2	0.1		80.07
Vested	(0.3	)	80.07
Forfeited	(0.1	)	90.91
Non-vested at December 31	0.6		$	96.14

¹ Performance shares granted assuming the Company will perform at target relative to peers.

² Adjustments for the number of shares vested under the 2017 awards at the end of the three-year performance period ended December 31, 2019, being higher than the target number of shares.

Share-based Compensation, Performance Shares Award Outstanding Activity

A summary of the 2019 activity for these PSUs follows:

(Performance share units in millions)	Number of performance share units		Weighted-average fair value per unit
Non-vested at January 1	0.1		$	56.55
Granted	—		—
Vested	(0.1	)	56.55
Forfeited	—		—
Non-vested at December 31	—		$	—

Information Related to PSUs

Information related to PSUs follows:

	2019		2018		2017
Pre-tax expense for PSUs	$	21	$	28	$	22
After-tax expense for PSUs	17		22		13

Assumptions used in determining fair value of stock options

A summary of the assumptions used in determining the fair value of stock options follows:

	2019			2018			2017
Expected volatility	23		%	26		%	27		%
Expected option life in years	6.6			6.7			6.6
Expected dividend yield	3.2		%	3.0		%	2.8		%
Risk-free interest rate	1.9 to 2.6%			2.6 to 2.9%			1.8 to 2.1%
Weighted-average fair value of stock options granted	$	14.08		$	16.93		$	15.11

Summary of stock option activity

A summary of stock option activity follows:

(Options in millions)	Weighted-average exercise price per option		Options		Weighted-average remaining contractual life in years	Aggregate intrinsic value
Outstanding at January 1, 2019	$	65.96	4.6
Granted	80.47		0.8
Exercised	60.47		(1.2	)
Forfeited and canceled	74.08		(0.1	)
Outstanding at December 31, 2019	$	69.95	4.1		6.2	$	102.5
Exercisable at December 31, 2019	$	65.59	2.8		5.2	$	82.6
Reserved for future grants at December 31, 2019			9.3

Information related to stock options

Information related to stock options follows:

	2019		2018		2017
Pre-tax expense for stock options	$	9	$	11	$	11
After-tax expense for stock options	7		9		8
Proceeds from stock options exercised	67		29		66
Income tax benefit related to stock options exercised
Tax benefit classified in operating activities in the Consolidated    Statements of Cash Flows	4		3		13
Intrinsic value of stock options exercised	29		17		41
Total fair value of stock options vested	$	9	$	11	$	11
Stock options exercised, in millions of options	1.2		0.6		1.5

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Fair Value Measurements Fair Value Measurements (Details 1) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018
Fair Value Disclosures [Abstract]
Time deposits and certificates of deposit with banks	$ 150	$ 111
Money market investments	71	46
Total short-term investments	$ 221	$ 157

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Equity-Based Compensation Stock Options Fair Value Assumptions (Details) - $ / shares	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Share-based Payment Arrangement [Abstract]
Expected volatility (in percentage)	23.00%	26.00%	27.00%
Expected option life in years (in years)	6 years 7 months 6 days	6 years 8 months 12 days	6 years 7 months 6 days
Expected dividend yield (in percentage)	3.20%	3.00%	2.80%
Risk-free interest rate minimum (in percentage)	1.90%	2.60%	1.80%
Risk-free interest rate maximum (in percentage)	2.60%	2.90%	2.10%
Weighted-average fair value of stock options granted (in usd per share)	$ 14.08	$ 16.93	$ 15.11
Stock option vesting period (in years)	3 years
Stock option expiration date after date of grant	10 years

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Business Segment and Geographic Region Information (Tables)

12 Months Ended

Dec. 31, 2019

Segment Reporting Information [Line Items]

Business Segment Information - Net sales, Segment operating profit and Corporate

	2019			2018			2017
Net sales
Electrical Products	$	7,148		$	7,124		$	6,917
Electrical Systems and Services	6,287			6,024			5,666
Hydraulics	2,552			2,756			2,468
Aerospace	2,044			1,896			1,744
Vehicle	3,038			3,489			3,326
eMobility	321			320			283
Total net sales	$	21,390		$	21,609		$	20,404
Segment operating profit
Electrical Products	$	1,390		$	1,311		$	1,233
Electrical Systems and Services	1,027			896			770
Hydraulics	286			370			288
Aerospace	495			398			332
Vehicle	460			611			541
eMobility	17			44			50
Total segment operating profit	3,675			3,630			3,214
Corporate
Amortization of intangible assets	(367		)	(382		)	(388		)
Interest expense - net	(236		)	(271		)	(246		)
Pension and other postretirement benefits expense	(12		)	(1		)	(45		)
Gain on sale of business	—			—			1,077
Arbitration decision expense	—			(275		)	—
Other corporate expense - net	(469		)	(277		)	(244		)
Income before income taxes	2,591			2,424			3,368
Income tax expense	378			278			382
Net income	2,213			2,146			2,986
Less net income for noncontrolling interests	(2		)	(1		)	(1		)
Net income attributable to Eaton ordinary shareholders	$	2,211		$	2,145		$	2,985

Business Segment Information - Identifiable assets, Capital expenditures for property, plant, and equipment, and Depreciation of property, plant, and equipment

	2019		2018		2017
Identifiable assets
Electrical Products	$	2,201	$	2,451	$	2,446
Electrical Systems and Services	2,532		2,243		2,141
Hydraulics	1,439		1,473		1,345
Aerospace	1,362		935		938
Vehicle	2,145		2,289		2,367
eMobility	141		139		136
Total identifiable assets	9,820		9,530		9,373
Goodwill	13,456		13,328		13,568
Other intangible assets	4,638		4,846		5,265
Corporate	3,514		3,388		4,417
Assets held for sale	1,377		—		—
Total assets	$	32,805	$	31,092	$	32,623
Capital expenditures for property, plant and equipment
Electrical Products	$	162	$	135	$	130
Electrical Systems and Services	108		101		83
Hydraulics	90		106		96
Aerospace	47		38		37
Vehicle	127		143		141
eMobility	8		4		4
Total	542		527		491
Corporate	45		38		29
Total expenditures for property, plant and equipment	$	587	$	565	$	520
Depreciation of property, plant and equipment
Electrical Products	$	126	$	136	$	138
Electrical Systems and Services	87		85		83
Hydraulics	66		64		61
Aerospace	27		26		26
Vehicle	102		104		109
eMobility	5		5		5
Total	413		420		422
Corporate	52		53		54
Total depreciation of property, plant and equipment	$	465	$	473	$	476

Geographic Region Information - Net sales and long-lived assets

Net sales are measured based on the geographic destination of sales. Long-lived assets consist of property, plant and equipment - net.

	2019		2018		2017
Net sales
United States	$	12,336	$	12,034	$	11,222
Canada	941		931		942
Latin America	1,312		1,442		1,485
Europe	4,311		4,553		4,394
Asia Pacific	2,490		2,649		2,361
Total	$	21,390	$	21,609	$	20,404
Long-lived assets
United States	$	1,821	$	1,898	$	1,872
Canada	24		20		20
Latin America	316		286		290
Europe	797		723		769
Asia Pacific	538		540		551
Total	$	3,496	$	3,467	$	3,502

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Eaton Shareholders' Equity

12 Months Ended

Dec. 31, 2019

Equity [Abstract]

Eaton Shareholders' Equity

EATON SHAREHOLDERS' EQUITY

There are 750 million Eaton ordinary shares authorized ($0.01 par value per share), 413.3 million and 423.6 million of which were issued and outstanding at December 31, 2019 and 2018, respectively. Eaton's Memorandum and Articles of Association authorized 40 thousand deferred ordinary shares (€1.00 par value per share) and 10 thousand preferred A shares ($1.00 par value per share), all of which were issued and outstanding at December 31, 2019 and 2018, and 10 million serial preferred shares ($0.01 par value per share), none of which is outstanding at December 31, 2019 and 2018. At December 31, 2019, there were 12,072 holders of record of Eaton ordinary shares. Additionally, 17,699 current and former employees were shareholders through participation in the Eaton Savings Plan, the Eaton Personal Investment Plan, or the Eaton Puerto Rico Retirement Savings Plan.

On February 24, 2016, the Board of Directors adopted a share repurchase program for share repurchases up to $2,500 of ordinary shares (2016 Program). Under the 2016 Program, the ordinary shares were expected to be repurchased over time, depending on market conditions, the market price of ordinary shares, capital levels, and other considerations. During 2018 and 2017, 13.2 million and 11.5 million shares, respectively, were purchased on the open market under the 2016 Program for a total cost of $1,002 and $850, respectively. An additional 4.3 million shares were purchased on the open market in December 2018 outside of the 2016 Program for a total cost of $298. On February 27, 2019, the Board of Directors adopted a new share repurchase program for share repurchases up to $5,000 of ordinary shares (2019 Program). Under the 2019 Program, the ordinary shares are expected to be repurchased over time, depending on market conditions, the market price of ordinary shares, capital levels, and other considerations. During 2019, 12.5 million ordinary shares were repurchased under the 2019 Program in the open market at a total cost of $1,000.

Eaton has deferral plans that permit certain employees and directors to defer a portion of their compensation. A trust contains $5 and $8 of ordinary shares and marketable securities at December 31, 2019 and 2018, respectively, to fund a portion of these liabilities. The marketable securities were included in Other assets and the ordinary shares were included in Shareholders' equity at historical cost.

On February 26, 2020, Eaton's Board of Directors declared a quarterly dividend of $0.73 per ordinary share, a 3% increase over the dividend paid in the fourth quarter of 2019. The dividend is payable on March 27, 2020 to shareholders of record on March 13, 2020.

Comprehensive Income (Loss)

Comprehensive income (loss) consists primarily of net income, currency translation and related hedging instruments, changes in unrecognized costs of pension and other postretirement benefits, and changes in the effective portion of open derivative contracts designated as cash flow hedges. The following table summarizes the pre-tax and after-tax amounts recognized in Comprehensive income (loss):

	2019						2018						2017
	Pre-tax			After-tax			Pre-tax			After-tax			Pre-tax			After-tax
Currency translation and related hedging instruments	$	15		$	16		$	(613	)	$	(609	)	$	800		$	807
Pensions and other postretirement benefits
Prior service credit (cost) arising during the year	(2		)	(2		)	(25		)	(20		)	(1		)	—
Net gain (loss) arising during the year	(294		)	(232		)	(358		)	(274		)	215			169
Currency translation	(16		)	(13		)	37			29			(67		)	(53		)
Other	—			—			—			5			—			(5		)
Amortization of actuarial loss and prior service cost    reclassified to earnings	148			117			168			121			188			130
	(164		)	(130		)	(178		)	(139		)	335			241
Cash flow hedges
Gain (loss) on derivatives designated as cash flow hedges	(33		)	(27		)	(8		)	(6		)	(24		)	(15		)
Changes in cash flow hedges reclassified to earnings	(5		)	(4		)	16			13			17			11
Cash flow hedges, net of reclassification adjustments	(38		)	(31		)	8			7			(7		)	(4		)
Other comprehensive income (loss) attributable to Eaton ordinary shareholders	$	(187	)	$	(145	)	$	(783	)	$	(741	)	$	1,128		$	1,044

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 January 1, 2019	$	(2,864	)	$	(1,278	)	$	(3	)	$	(4,145	)
Other comprehensive income (loss) before     reclassifications	16			(247		)	(27		)	(258		)
Amounts reclassified from Accumulated other    comprehensive loss (income)	—			117			(4		)	113
Net current-period Other comprehensive    income (loss)	16			(130		)	(31		)	(145		)
Balance at December 31, 2019	$	(2,848	)	$	(1,408	)	$	(34	)	$	(4,290	)

The reclassifications out of Accumulated other comprehensive loss follow:

	December 31, 2019			Consolidated Statements of Income classification
Amortization of defined benefits pension and other    postretirement benefits items
Actuarial loss and prior service cost	$	(148	)	1
Tax benefit	31
Total, net of tax	(117		)
Gains and (losses) on cash flow hedges
Currency exchange contracts	5			Net sales and Cost of products sold
Tax expense	(1		)
Total, net of tax	4
Total reclassifications for the period	$	(113	)

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

(Shares in millions)	2019		2018		2017
Net income attributable to Eaton ordinary shareholders	$	2,211	$	2,145	$	2,985
Weighted-average number of ordinary shares outstanding - diluted	420.8		436.9		447
Less dilutive effect of equity-based compensation	1.8		2.6		2.5
Weighted-average number of ordinary shares outstanding - basic	419.0		434.3		444.5
Net income per share attributable to Eaton ordinary shareholders
Diluted	$	5.25	$	4.91	$	6.68
Basic	5.28		4.93		6.71

In 2019, 2018, and 2017, 0.8 million, 0.5 million, and 0.4 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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Debt

12 Months Ended

Dec. 31, 2019

Debt Disclosure [Abstract]

Debt

DEBT

A summary of long-term debt, including the current portion, follows:

	2019			2018
6.95% notes due 2019 ($300 converted to floating rate by interest rate swap)	$	—		$	300
3.875% debentures due 2020 ($150 converted to floating rate by interest rate swap)	239			239
3.47% notes due 2021 ($275 converted to floating rate by interest rate swap)	300			300
0.02% Euro notes due 2021	674			—
8.10% debentures due 2022 ($100 converted to floating rate by interest rate swap)	100			100
2.75% senior notes due 2022 ($1,400 converted to floating rate by interest rate swap)	1,600			1,600
3.68% notes due 2023 ($200 converted to floating rate by interest rate swap)	300			300
0.75% Euro notes due 2024	617			629
6.50% debentures due 2025	145			145
0.70% Euro notes due 2025	562			—
3.10% senior notes due 2027	700			700
7.65% debentures due 2029 ($50 converted to floating rate by interest rate swap)	200			200
4.00% senior notes due 2032	700			700
5.45% debentures due 2034 ($25 converted to floating rate by interest rate swap)	137			136
5.80% notes due 2037	240			240
4.15% senior notes due 2042	1,000			1,000
3.92% senior notes due 2047	300			300
5.25% to 7.875% notes (maturities ranging from 2024 to 2035, including $25 converted to floating rate by interest rate swap)	165			203
Other	88			15
Total long-term debt	8,067			7,107
Less current portion of long-term debt	(248		)	(339		)
Long-term debt less current portion	$	7,819		$	6,768

Substantially all these long-term debt instruments are fully and unconditionally guaranteed on an unsubordinated, unsecured basis by Eaton and certain of its direct and indirect subsidiaries (the Senior Notes). Further, as of December 31, 2019 all of these long-term debt instruments, except the 3.875% debentures due 2020, the 3.47% notes due 2021, the 0.02% Euro notes due 2021, the 3.68% notes due 2023, the 0.75% Euro notes due 2024, and the 0.70% Euro notes due 2025, are registered by Eaton Corporation under the Securities Act of 1933, as amended (the Registered Senior Notes).

The Company maintains long-term revolving credit facilities totaling $2,000, consisting of a $750 five-year revolving credit facility that will expire November 17, 2022, a $500 four-year revolving credit facility that will expire November 7, 2023, and a $750 five-year revolving credit facility that will expire November 7, 2024. The revolving credit facilities are used to support commercial paper borrowings and are fully and unconditionally guaranteed by Eaton and certain of its direct and indirect subsidiaries on an unsubordinated, unsecured basis. There were no borrowings outstanding under Eaton's revolving credit facilities at December 31, 2019 or 2018. The Company had available lines of credit of $1,027 from various banks primarily for the issuance of letters of credit, of which there was $263 of letters of credit issued thereunder at December 31, 2019. Borrowings outside the United States are generally denominated in local currencies.

At December 31, 2019, short-term debt of $255 was comprised entirely of short-term commercial paper in the United States, which had a weighted average interest rate of 1.85%.

On May 14, 2019, a subsidiary of Eaton issued Euro denominated notes (2019 Euro Notes) with a face value of €1,100 ($1,232 based on the May 14, 2019 spot rate), in accordance with Regulation S promulgated under the Securities Act of 1933, as amended. The 2019 Euro Notes are comprised of two tranches of €600 and €500, which mature in 2021 and 2025, respectively, with interest payable annually at a respective rate of 0.02% and 0.70%. The issuer received proceeds totaling €1,097 ($1,229 based on the May 14, 2019 spot rate) from the issuance, net of financing costs and discounts. The senior 2019 Euro Notes are fully and unconditionally guaranteed on an unsubordinated, unsecured basis by Eaton and certain of its direct and indirect subsidiaries. The 2019 Euro Notes contain customary optional redemption and par call provisions. The 2019 Euro Notes also contain a change of control provision which requires the Company to make an offer to purchase all or any part of the 2019 Euro Notes at a purchase price of 101% of the principal amount plus accrued and unpaid interest. The capitalized deferred financing fees are amortized in Interest expense-net over the respective terms of the 2019 Euro Notes. The 2019 Euro Notes are subject to customary non-financial covenants.

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

Maturities of long-term debt for each of the next five years follow:

2020	$	248
2021	981
2022	1,704
2023	303
2024	685

Interest paid on debt follows:

2019	$	279
2018	313
2017	293

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Condensed Consolidating Financial Statements - Consolidating Statements of Comprehensive Income (Details) - USD ($) $ in Millions		12 Months Ended
	Jul. 31, 2017	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Statement of Comprehensive Income [Abstract]
Net sales		$ 21,390	$ 21,609	$ 20,404
Cost of products sold		14,338	14,511	13,756
Selling and administrative expense		3,583	3,548	3,526
Research and development expense		606	584	584
Interest expense (income) - net		236	271	246
Gain on sale of business	$ 1,077			1,077
Arbitration decision expense		0	275	0
Other expense (income) - net		36	(4)	1
Equity in loss (earnings) of subsidiaries, net of tax		0	0	0
Intercompany expense (income) - net		0	0	0
Income before income taxes		2,591	2,424	3,368
Income tax expense (benefit)		378	278	382
Net income		2,213	2,146	2,986
Less net income for noncontrolling interests		(2)	(1)	(1)
Net income attributable to Eaton ordinary shareholders		2,211	2,145	2,985
Other comprehensive income (loss)		(145)	(741)	1,044
Total comprehensive income attributable to Eaton ordinary shareholders		2,066	1,404	4,029
Guarantors
Statement of Comprehensive Income [Abstract]
Net sales		6,995	6,875	6,563
Cost of products sold		5,073	5,012	4,840
Selling and administrative expense		780	756	768
Research and development expense		140	146	176
Interest expense (income) - net		19	15	20
Gain on sale of business				0
Arbitration decision expense			275
Other expense (income) - net		(8)	22	(76)
Equity in loss (earnings) of subsidiaries, net of tax		(2,492)	(2,867)	(5,063)
Intercompany expense (income) - net		520	1,022	794
Income before income taxes		2,963	2,494	5,104
Income tax expense (benefit)		135	28	(52)
Net income		2,828	2,466	5,156
Less net income for noncontrolling interests		0	0	0
Net income attributable to Eaton ordinary shareholders		2,828	2,466	5,156
Other comprehensive income (loss)		(109)	(765)	1,021
Total comprehensive income attributable to Eaton ordinary shareholders		2,719	1,701	6,177
Other subsidiaries
Statement of Comprehensive Income [Abstract]
Net sales		12,101	12,649	12,358
Cost of products sold		8,651	9,011	8,895
Selling and administrative expense		1,312	1,331	1,360
Research and development expense		325	287	225
Interest expense (income) - net		(29)	(18)	(20)
Gain on sale of business				516
Arbitration decision expense			0
Other expense (income) - net		40	(52)	(50)
Equity in loss (earnings) of subsidiaries, net of tax		(2,563)	(2,338)	(3,832)
Intercompany expense (income) - net		(734)	(1,331)	(1,054)
Income before income taxes		5,099	5,759	7,350
Income tax expense (benefit)		239	248	99
Net income		4,860	5,511	7,251
Less net income for noncontrolling interests		(2)	(1)	(3)
Net income attributable to Eaton ordinary shareholders		4,858	5,510	7,248
Other comprehensive income (loss)		(312)	(1,565)	2,252
Total comprehensive income attributable to Eaton ordinary shareholders		4,546	3,945	9,500
Eaton Corporation plc
Statement of Comprehensive Income [Abstract]
Net sales		0	0	0
Cost of products sold		0	0	0
Selling and administrative expense		11	10	11
Research and development expense		0	0	0
Interest expense (income) - net		0	0	0
Gain on sale of business				0
Arbitration decision expense			0
Other expense (income) - net		(12)	(29)	79
Equity in loss (earnings) of subsidiaries, net of tax		(2,423)	(2,302)	(3,644)
Intercompany expense (income) - net		213	176	569
Income before income taxes		2,211	2,145	2,985
Income tax expense (benefit)		0	0	0
Net income		2,211	2,145	2,985
Less net income for noncontrolling interests		0	0	0
Net income attributable to Eaton ordinary shareholders		2,211	2,145	2,985
Other comprehensive income (loss)		(145)	(741)	1,044
Total comprehensive income attributable to Eaton ordinary shareholders		2,066	1,404	4,029
Eaton Corporation
Statement of Comprehensive Income [Abstract]
Net sales		7,322	7,395	6,900
Cost of products sold		5,646	5,805	5,434
Selling and administrative expense		1,480	1,451	1,387
Research and development expense		141	151	183
Interest expense (income) - net		248	273	244
Gain on sale of business				561
Arbitration decision expense			0
Other expense (income) - net		16	55	48
Equity in loss (earnings) of subsidiaries, net of tax		(593)	(716)	(1,644)
Intercompany expense (income) - net		1	133	(309)
Income before income taxes		383	243	2,118
Income tax expense (benefit)		3	1	337
Net income		380	242	1,781
Less net income for noncontrolling interests		0	0	0
Net income attributable to Eaton ordinary shareholders		380	242	1,781
Other comprehensive income (loss)		(6)	(162)	104
Total comprehensive income attributable to Eaton ordinary shareholders		374	80	1,885
Consolidating adjustments
Statement of Comprehensive Income [Abstract]
Net sales		(5,028)	(5,310)	(5,417)
Cost of products sold		(5,032)	(5,317)	(5,413)
Selling and administrative expense		0	0	0
Research and development expense		0	0	0
Interest expense (income) - net		(2)	1	2
Gain on sale of business				0
Arbitration decision expense			0
Other expense (income) - net		0	0	0
Equity in loss (earnings) of subsidiaries, net of tax		8,071	8,223	14,183
Intercompany expense (income) - net		0	0	0
Income before income taxes		(8,065)	(8,217)	(14,189)
Income tax expense (benefit)		1	1	(2)
Net income		(8,066)	(8,218)	(14,187)
Less net income for noncontrolling interests		0	0	2
Net income attributable to Eaton ordinary shareholders		(8,066)	(8,218)	(14,185)
Other comprehensive income (loss)		427	2,492	(3,377)
Total comprehensive income attributable to Eaton ordinary shareholders		$ (7,639)	$ (5,726)	$ (17,562)

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Retirement Benefits Plans - Pension Plans Assumptions (Details) - Pension plan [Member]	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
UNITED STATES
Assumptions used to determine benefit obligation at year-end
Discount rate		3.22%	4.28%	3.64%
Rate of compensation increase		3.14%	3.14%	3.15%
Assumptions used to determine expense
Discount rate used to determine benefit obligation		4.28%	3.64%	4.12%
Discount rate used to determine service cost		4.39%	3.78%	4.31%
Discount rate used to determine interest cost		3.94%	3.19%	3.40%
Expected long-term return on plan assets		7.25%	7.52%	7.90%
Rate of compensation increase		3.14%	3.15%	3.15%
Non-United States pension liabilities [Member]
Assumptions used to determine benefit obligation at year-end
Discount rate		2.02%	2.83%	2.62%
Rate of compensation increase		3.05%	3.10%	3.11%
Assumptions used to determine expense
Discount rate used to determine benefit obligation		2.83%	2.62%	2.63%
Discount rate used to determine service cost		4.02%	3.54%	3.38%
Discount rate used to determine interest cost		2.56%	2.31%	2.34%
Expected long-term return on plan assets		6.42%	6.40%	6.30%
Rate of compensation increase		3.10%	3.11%	3.13%
Forecast [Member] | UNITED STATES
Assumptions used to determine expense
Expected long-term return on plan assets	7.25%
Forecast [Member] | Non-United States pension liabilities [Member]
Assumptions used to determine expense
Expected long-term return on plan assets	5.84%

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Income Taxes - Income Tax (Benefit) Expense (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Current Income Tax Expense (Benefit) [Abstract]
Total current income tax expense	$ 436	$ 417	$ 358
Deferred Income Tax Benefit [Abstract]
Total deferred income tax benefit	(58)	(139)	24
Income tax expense (benefit)	378	278	382
Ireland [Member]
Current Income Tax Expense (Benefit) [Abstract]
Ireland	26	47	1
Deferred Income Tax Benefit [Abstract]
Ireland	3	6	0
Foreign [Member]
Current Income Tax Expense (Benefit) [Abstract]
Foreign	410	370	357
Deferred Income Tax Benefit [Abstract]
Foreign	$ (61)	$ (145)	$ 24

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Income Taxes - Operating Loss and Tax Credit Carryforwards, Foreign, By Expiration Dates (Details) $ in Millions	Dec. 31, 2019 USD ($)
2030 through 2034 [Member]
Operating Loss and Tax Credit Carry Forward [Line Items]
Ireland deferred income tax assets for income tax loss carryforwards	$ 0
2025 through 2029 [Member]
Operating Loss and Tax Credit Carry Forward [Line Items]
Ireland deferred income tax assets for income tax loss carryforwards	0
2020 through 2024 [Member]
Operating Loss and Tax Credit Carry Forward [Line Items]
Ireland deferred income tax assets for income tax loss carryforwards	0
Not subject to expiration [Member]
Operating Loss and Tax Credit Carry Forward [Line Items]
Ireland deferred income tax assets for income tax loss carryforwards	(1)
2035 through 2044 [Member]
Operating Loss and Tax Credit Carry Forward [Line Items]
Ireland deferred income tax assets for income tax loss carryforwards	0
2020 through 2024 [Member]
Operating Loss and Tax Credit Carry Forward [Line Items]
Ireland income tax loss carryforwards	0
2025 through 2029 [Member]
Operating Loss and Tax Credit Carry Forward [Line Items]
Ireland income tax loss carryforwards	0
2030 through 2034 [Member]
Operating Loss and Tax Credit Carry Forward [Line Items]
Ireland income tax loss carryforwards	0
2035 through 2044 [Member]
Operating Loss and Tax Credit Carry Forward [Line Items]
Ireland income tax loss carryforwards	0
Not subject to expiration [Member]
Operating Loss and Tax Credit Carry Forward [Line Items]
Ireland income tax loss carryforwards	8
Related valuation allowance [Member]
Operating Loss and Tax Credit Carry Forward [Line Items]
Ireland income tax loss carryforwards	0
Ireland deferred income tax assets for income tax loss carryforwards	$ (1)

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Retirement Benefits Plans - Fair Value of Pension Plan Assets (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Defined Benefit Plan Disclosure [Line Items]
Unfunded commitments	$ 334	$ 180
United States pension plans percentage of worldwide pension assets	64.00%
United Kingdom pension plans percentage of worldwide pension assets	28.00%
United States pension plans' target allocation of United States equities	25.00%
United States pension plans' target allocation of non-United States equities	25.00%
United States pension plans' target allocation of real estate	8.00%
United State pension plans' target allocation of debt securities	37.00%
United States pension plans' target allocation of other, including hedge funds and cash equivalents	5.00%
United Kingdom pension plans' target allocation of equities	60.00%
Pending purchases and sales of plan assets, and interest receivable	$ (89)	(24)
Total pension plan assets	5,336	4,628
Quoted prices in active markets for identical assets (Level 1) [Member]
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	701	684
Other observable inputs (Level 2) [Member]
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	2,420	2,034
Unobservable inputs (Level 3) [Member]
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	190	96
Non-United States Equity and Global Equities [Member]
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	606	612
Non-United States Equity and Global Equities [Member] | Quoted prices in active markets for identical assets (Level 1) [Member]
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	0	0
Non-United States Equity and Global Equities [Member] | Other observable inputs (Level 2) [Member]
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	606	612
Non-United States Equity and Global Equities [Member] | Unobservable inputs (Level 3) [Member]
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	0	0
United States Equity [Member]
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	74	50
United States Equity [Member] | Quoted prices in active markets for identical assets (Level 1) [Member]
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	0	0
United States Equity [Member] | Other observable inputs (Level 2) [Member]
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	74	50
United States Equity [Member] | Unobservable inputs (Level 3) [Member]
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	0	0
Fixed Income [Member]
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	571	483
Fixed Income [Member] | Quoted prices in active markets for identical assets (Level 1) [Member]
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	0	0
Fixed Income [Member] | Other observable inputs (Level 2) [Member]
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	571	483
Fixed Income [Member] | Unobservable inputs (Level 3) [Member]
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	0	0
Fixed Income Securities [Member]
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	885	721
Fixed Income Securities [Member] | Quoted prices in active markets for identical assets (Level 1) [Member]
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	0	0
Fixed Income Securities [Member] | Other observable inputs (Level 2) [Member]
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	885	721
Fixed Income Securities [Member] | Unobservable inputs (Level 3) [Member]
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	0	0
United States treasuries [Member]
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	330	262
United States treasuries [Member] | Quoted prices in active markets for identical assets (Level 1) [Member]
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	330	262
United States treasuries [Member] | Other observable inputs (Level 2) [Member]
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	0	0
United States treasuries [Member] | Unobservable inputs (Level 3) [Member]
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	0	0
Bank Loans [Member]
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	104	107
Bank Loans [Member] | Quoted prices in active markets for identical assets (Level 1) [Member]
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	0	0
Bank Loans [Member] | Other observable inputs (Level 2) [Member]
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	104	107
Bank Loans [Member] | Unobservable inputs (Level 3) [Member]
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	0	0
Real Estate Securities [Member]
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	299	202
Real Estate Securities [Member] | Quoted prices in active markets for identical assets (Level 1) [Member]
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	225	181
Real Estate Securities [Member] | Other observable inputs (Level 2) [Member]
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	13	0
Real Estate Securities [Member] | Unobservable inputs (Level 3) [Member]
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	61	21
Equity Securities [Member]
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets		51
Equity Securities [Member] | Quoted prices in active markets for identical assets (Level 1) [Member]
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets		51
Equity Securities [Member] | Other observable inputs (Level 2) [Member]
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets		0
Equity Securities [Member] | Unobservable inputs (Level 3) [Member]
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets		0
Cash Equivalents [Member]
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	196	176
Cash Equivalents [Member] | Quoted prices in active markets for identical assets (Level 1) [Member]
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	67	130
Cash Equivalents [Member] | Other observable inputs (Level 2) [Member]
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	129	46
Cash Equivalents [Member] | Unobservable inputs (Level 3) [Member]
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	0	0
Exchange Traded Funds [Member]
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	79	60
Exchange Traded Funds [Member] | Quoted prices in active markets for identical assets (Level 1) [Member]
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	79	60
Exchange Traded Funds [Member] | Other observable inputs (Level 2) [Member]
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	0	0
Exchange Traded Funds [Member] | Unobservable inputs (Level 3) [Member]
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	0	0
Other Pension Plan Asset [Member]
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	167	90
Other Pension Plan Asset [Member] | Quoted prices in active markets for identical assets (Level 1) [Member]
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	0	0
Other Pension Plan Asset [Member] | Other observable inputs (Level 2) [Member]
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	38	15
Other Pension Plan Asset [Member] | Unobservable inputs (Level 3) [Member]
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	129	75
Common Collective Trusts [Member]
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	2,108	1,833
Money Market Funds [Member]
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	$ 6	$ 5
United Kingdom Plan [Member] | Defined Benefit Plan, Debt Security and Real Estate Investment [Member]
Defined Benefit Plan Disclosure [Line Items]
United States pension plans' target allocation of real estate	40.00%

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LEASES - Maturities of Lease Liabilities Operating and Financing (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2019
Leases [Abstract]
Rental expense	$ 232	$ 222
Lessee, Operating Lease, Liability, Payment, Due [Abstract]
2020			$ 142
2021			113
2022			82
2023			56
2024			37
Thereafter			82
Total lease payments			512
Less imputed interest			60
Operating lease liabilities			452
Finance Lease, Liability, Payment, Due [Abstract]
2020			8
2021			8
2022			6
2023			4
2024			2
Thereafter			9
Total lease payments			37
Less imputed interest			10
Finance lease liabilities			$ 27

XML

LEASES - Components of Lease Expense (Details) $ in Millions	12 Months Ended
	Dec. 31, 2019 USD ($)
Leases [Abstract]
Operating lease cost	$ 166
Finance lease cost - amortization of lease assets	5
Interest on lease liabilities	1
Short-term lease cost	46
Variable lease cost	22
Sublease income	(3)
Total lease cost	$ 237

XML

Revenue Recognition Schedule of Changes in Deferred Revenue Liabilities (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Movement in Deferred Revenue [Roll Forward]
Beginining Balance	$ 248	$ 227
Customer deposits and billings	982	967
Revenue recognized in the period	(993)	(939)
Translation	3	(7)
Deferred revenue reclassified to held for sale	(6)
Ending Balance	$ 234	$ 248

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Summary of Significant Accounting Policies - Recently Issued Accounting Pronouncements (Details) - USD ($) $ in Millions	Dec. 31, 2019	Jan. 01, 2019	Dec. 31, 2018
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Operating lease assets	$ 436		$ 0
Operating lease liabilities	$ 452
Accounting Standards Update 2016-02 [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Cumulative-effect adjustment upon adoption		$ 1
Operating lease assets		435
Operating lease liabilities		$ 446

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Acquisition and Divestitures of Businesses - Sale of Lighting business (Details) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Assets held for sale - current	$ 1,377	$ 0
Lighting Business
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Accounts receivable - net	220
Inventory	161
Prepaid expenses and other current assets	10
Net property, plant and equipment	155
Goodwill	470
Other intangible assets	330
Operating lease assets	25
Other noncurrent assets	6
Assets held for sale - current	1,377
Accounts payable	184
Accrued compensation	7
Other current liabilities	102
Pension liabilities	3
Operating lease liabilities	17
Deferred income taxes	(1)
Other noncurrent liabilities	13
Liabilities held for sale - current	$ 325

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Debt - Schedule of Maturities of Long-term Debt (Details) $ in Millions	Dec. 31, 2019 USD ($)
Debt Disclosure [Abstract]
2020	$ 248
2021	981
2022	1,704
2023	303
2024	$ 685

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Equity-Based Compensation Restricted Stock Units and Awards Activity (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Weighted-average fair value per unit and award
Compensation expense not yet recognized related to non-vested RSUs and RSAs	$ 75
Non-vested stock options weighted-average period for total compensation expense to be recognized ( in years)	1 year 9 months 18 days
Restricted Stock Units (RSUs) [Member]
Number of restricted stock units and awards
Non-vested at January 1 (shares)	2.1
Granted (shares)	0.9
Vested (shares)	(1.2)
Forfeited (shares)	(0.1)
Non-vested at December 31 (shares)	1.7	2.1
Weighted-average fair value per unit and award
Non-vested at January 1 (usd per share)	$ 68.56
Granted (usd per share)	80.59
Vested (usd per share)	65.45
Forfeited (usd per share)	76.24
Non-vested at December 31 (usd per share)	$ 76.79	$ 68.56
Non-vested stock options weighted-average period for total compensation expense to be recognized ( in years)	2 years 3 months 18 days
Excess tax benefit for equity-based compensation	$ 3	$ 3	$ 2

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Eaton Shareholders' Equity - Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Changes in accumulated other comprehensive income (loss) [Line Items]
Beginning Balance	$ (4,145)
Other comprehensive (loss) income attributable to Eaton ordinary shareholders	(145)	$ (741)	$ 1,044
Ending Balance	(4,290)	(4,145)
Currency translation and related hedging instruments [Member]
Changes in accumulated other comprehensive income (loss) [Line Items]
Beginning Balance	(2,864)
Other comprehensive income (loss) before reclassifications	16
Amounts reclassified from Accumulated other comprehensive loss (income)	0
Other comprehensive (loss) income attributable to Eaton ordinary shareholders	16
Ending Balance	(2,848)	(2,864)
Pensions and Other Postretirement Benefits [Member]
Changes in accumulated other comprehensive income (loss) [Line Items]
Beginning Balance	(1,278)
Other comprehensive income (loss) before reclassifications	(247)
Amounts reclassified from Accumulated other comprehensive loss (income)	117
Other comprehensive (loss) income attributable to Eaton ordinary shareholders	(130)
Ending Balance	(1,408)	(1,278)
Cash Flow Hedges [Member]
Changes in accumulated other comprehensive income (loss) [Line Items]
Beginning Balance	(3)
Other comprehensive income (loss) before reclassifications	(27)
Amounts reclassified from Accumulated other comprehensive loss (income)	(4)
Other comprehensive (loss) income attributable to Eaton ordinary shareholders	(31)
Ending Balance	(34)	(3)
Accumulated Other Comprehensive Income (Loss) [Member]
Changes in accumulated other comprehensive income (loss) [Line Items]
Beginning Balance	(4,145)
Other comprehensive income (loss) before reclassifications	(258)
Amounts reclassified from Accumulated other comprehensive loss (income)	113
Other comprehensive (loss) income attributable to Eaton ordinary shareholders	(145)
Ending Balance	$ (4,290)	$ (4,145)

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Debt - Summary of Long-term Debt (Details) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018
Debt Instrument [Line Items]
Total long-term debt	$ 8,067	$ 7,107
Less current portion of long-term debt	(248)	(339)
Long-term debt less current portion	7,819	6,768
Notes [Member] | Notes due 2019 [Member]
Debt Instrument [Line Items]
Notes	$ 0	$ 300
Debt instrument, stated interest rate (in percentage)	6.95%	6.95%
Related long term debt converted to floating interest rates by interest rate swaps	$ 300
Notes [Member] | Notes due 2021 [Member]
Debt Instrument [Line Items]
Notes	$ 300	$ 300
Debt instrument, stated interest rate (in percentage)	3.47%	3.47%
Related long term debt converted to floating interest rates by interest rate swaps	$ 275
Notes [Member] | 0.02% Euro notes due 2021
Debt Instrument [Line Items]
Notes	$ 674	$ 0
Debt instrument, stated interest rate (in percentage)	0.02%	0.02%
Notes [Member] | Notes due 2023 [Member]
Debt Instrument [Line Items]
Notes	$ 300	$ 300
Debt instrument, stated interest rate (in percentage)	3.68%	3.68%
Related long term debt converted to floating interest rates by interest rate swaps	$ 200
Notes [Member] | 0.70% Euro notes due 2025
Debt Instrument [Line Items]
Notes	$ 562	$ 0
Debt instrument, stated interest rate (in percentage)	0.70%	0.70%
Notes [Member] | Notes due 2037 [Member]
Debt Instrument [Line Items]
Notes	$ 240	$ 240
Debt instrument, stated interest rate (in percentage)	5.80%	5.80%
Notes [Member] | Notes due from 2024 to 2035 [Member]
Debt Instrument [Line Items]
Notes	$ 165	$ 203
Related long term debt converted to floating interest rates by interest rate swaps	$ 25
Notes [Member] | Notes due from 2024 to 2035 [Member] | Minimum
Debt Instrument [Line Items]
Debt instrument, stated interest rate (in percentage)	5.25%	5.25%
Notes [Member] | Notes due from 2024 to 2035 [Member] | Maximum
Debt Instrument [Line Items]
Debt instrument, stated interest rate (in percentage)	7.875%	7.875%
Debenture [Member] | Debentures due 2020 [Member]
Debt Instrument [Line Items]
Long term debt debentures	$ 239	$ 239
Debt instrument, stated interest rate (in percentage)	3.875%	3.875%
Related long term debt converted to floating interest rates by interest rate swaps	$ 150
Debenture [Member] | Debentures due 2022 [Member]
Debt Instrument [Line Items]
Long term debt debentures	$ 100	$ 100
Debt instrument, stated interest rate (in percentage)	8.10%	8.10%
Related long term debt converted to floating interest rates by interest rate swaps	$ 100
Debenture [Member] | Debentures due 2025 [Member]
Debt Instrument [Line Items]
Long term debt debentures	$ 145	$ 145
Debt instrument, stated interest rate (in percentage)	6.50%	6.50%
Debenture [Member] | Debentures due 2029 [Member]
Debt Instrument [Line Items]
Long term debt debentures	$ 200	$ 200
Debt instrument, stated interest rate (in percentage)	7.65%	7.65%
Related long term debt converted to floating interest rates by interest rate swaps	$ 50
Debenture [Member] | Debentures due 2034 [Member]
Debt Instrument [Line Items]
Long term debt debentures	$ 137	$ 136
Debt instrument, stated interest rate (in percentage)	5.45%	5.45%
Related long term debt converted to floating interest rates by interest rate swaps	$ 25
Senior Notes [Member] | Senior notes due 2022 [Member]
Debt Instrument [Line Items]
Senior Notes, Noncurrent	$ 1,600	$ 1,600
Debt instrument, stated interest rate (in percentage)	2.75%	2.75%
Related long term debt converted to floating interest rates by interest rate swaps	$ 1,400
Senior Notes [Member] | Senior notes due 2024 [Member]
Debt Instrument [Line Items]
Notes	$ 617	$ 629
Debt instrument, stated interest rate (in percentage)	0.75%	0.75%
Senior Notes [Member] | Senior notes due 2027 [Member]
Debt Instrument [Line Items]
Notes	$ 700	$ 700
Debt instrument, stated interest rate (in percentage)	3.10%	3.10%
Senior Notes [Member] | Senior notes due 2032 [Member]
Debt Instrument [Line Items]
Senior Notes, Noncurrent	$ 700	$ 700
Debt instrument, stated interest rate (in percentage)	4.00%	4.00%
Senior Notes [Member] | Senior notes due 2042 [Member]
Debt Instrument [Line Items]
Senior Notes, Noncurrent	$ 1,000	$ 1,000
Debt instrument, stated interest rate (in percentage)	4.15%	4.15%
Senior Notes [Member] | Senior notes due 2047 [Member]
Debt Instrument [Line Items]
Notes	$ 300	$ 300
Debt instrument, stated interest rate (in percentage)	3.92%	3.92%
Other long-term debt [Member]
Debt Instrument [Line Items]
Other	$ 88	$ 15

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Equity-Based Compensation Summary of RSUs (Details) - Performance Shares [Member] - shares	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percent payout	130.00%	116.00%
Shares vested	300,000	500,000

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Retirement Benefits Plans - Changes in Pension and Other Postretirement Liabilities Recognized in AOCI (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Changes in pension and other postretirement benefit liabilities recognized in Accumulated other comprehensive loss
Prior service cost arising during the year	$ 2	$ 25	$ 1
Less amounts included in expense during the year	294	358	(215)
Net change for the year	0	0	0
Pension plan [Member] | Non-United States pension liabilities [Member]
Changes in pension and other postretirement benefit liabilities recognized in Accumulated other comprehensive loss
Balance at January 1	710	604
Prior service cost arising during the year	0	21
Net loss (gain) arising during the year	231	161
Currency translation	15	(35)
Less amounts included in expense during the year	(52)	(41)
Net change for the year	194	106
Balance at December 31	904	710	604
Pension plan [Member] | UNITED STATES
Changes in pension and other postretirement benefit liabilities recognized in Accumulated other comprehensive loss
Balance at January 1	1,160	1,063
Prior service cost arising during the year	1	4
Net loss (gain) arising during the year	52	233
Currency translation	0	0
Less amounts included in expense during the year	(110)	(140)
Net change for the year	(57)	97
Balance at December 31	1,103	1,160	1,063
Other postretirement liabilities [Member]
Changes in pension and other postretirement benefit liabilities recognized in Accumulated other comprehensive loss
Balance at January 1	(52)	(27)
Prior service cost arising during the year	1	0
Net loss (gain) arising during the year	11	(36)
Currency translation	1	(2)
Less amounts included in expense during the year	14	13
Net change for the year	27	(25)
Balance at December 31	$ (25)	$ (52)	$ (27)

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Consolidated Statements of Shareholders' Equity Statement - USD ($) shares in Millions, $ in Millions	Total	Ordinary shares	Capital in excess of par value	Retained earnings	Accumulated other comprehensive loss	Shares held in trust	Total Eaton shareholders' equity	Noncontrolling interests
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance, adjusted balance	$ 14,998	$ 5	$ 11,845	$ 7,555	$ (4,448)	$ (3)	$ 14,954	$ 44
Beginning balance, shares at Dec. 31, 2016		449.4
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Cumulative-effect adjustment upon adoption of ASU | ASU 2016-09	48			48			48
Net income	2,986			2,985			2,985	1
Other comprehensive income (loss), net of tax	1,044				1,044		1,044
Cash dividends paid	(1,073)			(1,068)			(1,068)	(5)
Issuance of shares under equity-based compensation plans, shares		2.0
Issuance of shares under equity-based compensation plans	140		142	(2)			140
Changes in noncontrolling interest of consolidated subsidiaries - net	(3)							(3)
Repurchase of shares, shares		(11.5)
Repurchase of shares	(850)	$ (1)		(849)			(850)
Ending balance, shares at Dec. 31, 2017		439.9
Ending balance at Dec. 31, 2017	17,290	$ 4	11,987	8,669	(3,404)	(3)	17,253	37
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Cumulative-effect adjustment upon adoption of ASU | Accounting Standards Update 2014-09 [Member]	(2)			(2)			(2)
Cumulative-effect adjustment upon adoption of ASU | Accounting Standards Update 2016-16 [Member]	(199)			(199)			(199)
Net income	2,146			2,145			2,145	1
Other comprehensive income (loss), net of tax	(741)				(741)		(741)
Cash dividends paid	(1,150)			(1,149)			(1,149)	(1)
Issuance of shares under equity-based compensation plans, shares		1.2
Issuance of shares under equity-based compensation plans	100		103	(3)			100
Changes in noncontrolling interest of consolidated subsidiaries - net	(2)							(2)
Repurchase of shares, shares		(17.5)
Repurchase of shares	(1,300)			(1,300)			(1,300)
Ending balance, shares at Dec. 31, 2018		423.6
Ending balance at Dec. 31, 2018	16,142	$ 4	12,090	8,161	(4,145)	(3)	16,107	35
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	2,213			2,211			2,211	2
Other comprehensive income (loss), net of tax	(145)				(145)		(145)
Cash dividends paid	(1,204)			(1,201)			(1,201)	(3)
Issuance of shares under equity-based compensation plans, shares		2.2
Issuance of shares under equity-based compensation plans	110		110	(1)		1	110
Acquisitions of businesses	55							55
Acquisition of noncontrolling interest obtained through tender offer	(33)							(33)
Business divestiture	(4)							(4)
Changes in noncontrolling interest of consolidated subsidiaries - net	(1)							(1)
Repurchase of shares, shares		(12.5)
Repurchase of shares	(1,000)			(1,000)			(1,000)
Ending balance, shares at Dec. 31, 2019		413.3
Ending balance at Dec. 31, 2019	$ 16,133	$ 4	$ 12,200	$ 8,170	$ (4,290)	$ (2)	$ 16,082	$ 51

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Derivative Financial Instruments and Hedging Activities - Impact of Derivative on Consolidated Statement of Income (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Net sales	$ 21,390	$ 21,609	$ 20,404
Cost of products sold	14,338	$ 14,511	$ 13,756
Interest expense - net	236
Cash Flow Hedging | Net sales | Currency exchange contracts
Derivative [Line Items]
Gain (loss) on hedged item	7
Gain (loss) on hedging instrument	(7)
Cash Flow Hedging | Net sales | Commodity contracts
Derivative [Line Items]
Gain (loss) on hedged item	0
Gain (loss) on hedging instrument	0
Cash Flow Hedging | Cost of products sold | Currency exchange contracts
Derivative [Line Items]
Gain (loss) on hedged item	(12)
Gain (loss) on hedging instrument	12
Cash Flow Hedging | Cost of products sold | Commodity contracts
Derivative [Line Items]
Gain (loss) on hedged item	0
Gain (loss) on hedging instrument	0
Cash Flow Hedging | Interest expense - net | Currency exchange contracts
Derivative [Line Items]
Gain (loss) on hedged item	0
Gain (loss) on hedging instrument	0
Cash Flow Hedging | Interest expense - net | Commodity contracts
Derivative [Line Items]
Gain (loss) on hedged item	0
Gain (loss) on hedging instrument	0
Fair Value Hedging | Net sales | Interest Rate Swap
Derivative [Line Items]
Gain (loss) on hedged item	0
Gain (loss) on hedging instrument	0
Fair Value Hedging | Cost of products sold | Interest Rate Swap
Derivative [Line Items]
Gain (loss) on hedged item	0
Gain (loss) on hedging instrument	0
Fair Value Hedging | Interest expense - net | Interest Rate Swap
Derivative [Line Items]
Gain (loss) on hedged item	(62)
Gain (loss) on hedging instrument	$ 62

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Accounts Receivable and Inventory - Components of Inventory (Details) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018
Accounts Receivable and Inventory [Abstract]
Raw materials	$ 986	$ 1,077
Work-in-process	640	500
Finished goods	1,179	1,208
Total inventory	$ 2,805	$ 2,785

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Consolidated Statements of Comprehensive Income - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Statement of Comprehensive Income [Abstract]
Net income	$ 2,213	$ 2,146	$ 2,986
Less net income for noncontrolling interests	(2)	(1)	(1)
Net income attributable to Eaton ordinary shareholders	2,211	2,145	2,985
Other comprehensive income (loss), net of tax
Currency translation and related hedging instruments	16	(609)	807
Pensions and other postretirement benefits	(130)	(139)	241
Cash flow hedges	(31)	7	(4)
Other comprehensive (loss) income attributable to Eaton ordinary shareholders	(145)	(741)	1,044
Total comprehensive income attributable to Eaton ordinary shareholders	$ 2,066	$ 1,404	$ 4,029

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Goodwill and Other Intangible Assets Goodwill (Tables)

12 Months Ended

Dec. 31, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

Rollforward of goodwill

Changes in the carrying amount of goodwill by segment follow:

	January 1, 2018		Translation			December 31, 2018		Additions		Goodwill reclassified to held for sale			Translation			December 31, 2019
Electrical Products	$	6,678	$	(116	)	$	6,562	$	—	$	(470	)	$	(2	)	$	6,090
Electrical Systems and Services	4,311		(70		)	4,241		163		—			6			4,410
Hydraulics	1,257		(45		)	1,212		—		—			(13		)	1,199
Aerospace	947		(6		)	941		442		—			3			1,386
Vehicle	294		(2		)	292		—		—			(1		)	291
eMobility	81		(1		)	80		—		—			—			80
Total	$	13,568	$	(240	)	$	13,328	$	605	$	(470	)	$	(7	)	$	13,456

Summary of other intangible assets

A summary of other intangible assets follows:

	2019				2018
	Historical cost		Accumulated amortization		Historical cost		Accumulated amortization
Intangible assets not subject to amortization
Trademarks	$	1,516			$	1,626
Intangible assets subject to amortization
Customer relationships	$	3,260	$	1,634	$	3,463	$	1,600
Patents and technology	1,542		704		1,329		646
Trademarks	1,057		457		1,032		419
Other	92		34		92		31
Total intangible assets subject to amortization	$	5,951	$	2,829	$	5,916	$	2,696

Expense related to intangible assets subject to amortization in 2019, and for each of the next five years

Amortization expense related to intangible assets subject to amortization in 2019, and estimated amortization expense for each of the next five years, follows:

2019	$	354
2020	351
2021	341
2022	332
2023	286
2024	275

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Condensed Consolidating Financial Statements

12 Months Ended

Dec. 31, 2019

Condensed Financial Information Disclosure [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 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 2019, 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 YEAR ENDED DECEMBER 31, 2019
	Eaton Corporation plc			Eaton Corporation			Guarantors			Other subsidiaries			Consolidating adjustments			Total
Net sales	$	—		$	7,322		$	6,995		$	12,101		$	(5,028	)	$	21,390
Cost of products sold	—			5,646			5,073			8,651			(5,032		)	14,338
Selling and administrative expense	11			1,480			780			1,312			—			3,583
Research and development expense	—			141			140			325			—			606
Interest expense (income) - net	—			248			19			(29		)	(2		)	236
Other expense (income) - net	(12		)	16			(8		)	40			—			36
Equity in loss (earnings) of    subsidiaries, net of tax	(2,423		)	(593		)	(2,492		)	(2,563		)	8,071			—
Intercompany expense (income) - net	213			1			520			(734		)	—			—
Income (loss) before income taxes	2,211			383			2,963			5,099			(8,065		)	2,591
Income tax expense (benefit)	—			3			135			239			1			378
Net income (loss)	2,211			380			2,828			4,860			(8,066		)	2,213
Less net loss (income) for    noncontrolling interests	—			—			—			(2		)	—			(2		)
Net income (loss) attributable to    Eaton ordinary shareholders	$	2,211		$	380		$	2,828		$	4,858		$	(8,066	)	$	2,211
Other comprehensive income (loss)	(145		)	(6		)	(109		)	(312		)	427			(145		)
Total comprehensive income (loss) attributable to Eaton    ordinary shareholders	$	2,066		$	374		$	2,719		$	4,546		$	(7,639	)	$	2,066

CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME YEAR ENDED DECEMBER 31, 2018
	Eaton Corporation plc			Eaton Corporation			Guarantors			Other subsidiaries			Consolidating adjustments			Total
Net sales	$	—		$	7,395		$	6,875		$	12,649		$	(5,310	)	$	21,609
Cost of products sold	—			5,805			5,012			9,011			(5,317		)	14,511
Selling and administrative expense	10			1,451			756			1,331			—			3,548
Research and development expense	—			151			146			287			—			584
Interest expense (income) - net	—			273			15			(18		)	1			271
Arbitration decision expense	—			—			275			—			—			275
Other expense (income) - net	(29		)	55			22			(52		)	—			(4		)
Equity in loss (earnings) of    subsidiaries, net of tax	(2,302		)	(716		)	(2,867		)	(2,338		)	8,223			—
Intercompany expense (income) - net	176			133			1,022			(1,331		)	—			—
Income (loss) before income taxes	2,145			243			2,494			5,759			(8,217		)	2,424
Income tax expense (benefit)	—			1			28			248			1			278
Net income (loss)	2,145			242			2,466			5,511			(8,218		)	2,146
Less net loss (income) for    noncontrolling interests	—			—			—			(1		)	—			(1		)
Net income (loss) attributable to    Eaton ordinary shareholders	$	2,145		$	242		$	2,466		$	5,510		$	(8,218	)	$	2,145
Other comprehensive income (loss)	(741		)	(162		)	(765		)	(1,565		)	2,492			(741		)
Total comprehensive income (loss) attributable to Eaton    ordinary shareholders	$	1,404		$	80		$	1,701		$	3,945		$	(5,726	)	$	1,404

CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME YEAR ENDED DECEMBER 31, 2017
	Eaton Corporation plc			Eaton Corporation			Guarantors			Other subsidiaries			Consolidating adjustments			Total
Net sales	$	—		$	6,900		$	6,563		$	12,358		$	(5,417	)	$	20,404
Cost of products sold	—			5,434			4,840			8,895			(5,413		)	13,756
Selling and administrative expense	11			1,387			768			1,360			—			3,526
Research and development expense	—			183			176			225			—			584
Interest expense (income) - net	—			244			20			(20		)	2			246
Gain on sale of business	—			561			—			516			—			1,077
Other expense (income) - net	79			48			(76		)	(50		)	—			1
Equity in loss (earnings) of    subsidiaries, net of tax	(3,644		)	(1,644		)	(5,063		)	(3,832		)	14,183			—
Intercompany expense (income) - net	569			(309		)	794			(1,054		)	—			—
Income (loss) before income taxes	2,985			2,118			5,104			7,350			(14,189		)	3,368
Income tax expense (benefit)	—			337			(52		)	99			(2		)	382
Net income (loss)	2,985			1,781			5,156			7,251			(14,187		)	2,986
Less net loss (income) for    noncontrolling interests	—			—			—			(3		)	2			(1		)
Net income (loss) attributable to    Eaton ordinary shareholders	$	2,985		$	1,781		$	5,156		$	7,248		$	(14,185	)	$	2,985
Other comprehensive income (loss)	1,044			104			1,021			2,252			(3,377		)	1,044
Total comprehensive income (loss) attributable to Eaton    ordinary shareholders	$	4,029		$	1,885		$	6,177		$	9,500		$	(17,562	)	$	4,029

CONDENSED CONSOLIDATING BALANCE SHEETS DECEMBER 31, 2019
	Eaton Corporation plc		Eaton Corporation		Guarantors		Other subsidiaries		Consolidating adjustments			Total
Assets
Current assets
Cash	$	—	$	27	$	—	$	343	$	—		$	370
Short-term investments	—		—		—		221		—			221
Accounts receivable - net	—		460		982		1,995		—			3,437
Intercompany accounts receivable	9		937		1,848		1,683		(4,477		)	—
Inventory	—		596		672		1,609		(72		)	2,805
Assets held for sale	—		—		1,211		166		—			1,377
Prepaid expenses and other    current assets	—		106		28		371		13			518
Total current assets	9		2,126		4,741		6,388		(4,536		)	8,728
Property, plant and equipment - net	—		854		563		2,079		—			3,496
Other noncurrent assets
Goodwill	—		1,742		5,839		5,875		—			13,456
Other intangible assets	—		302		2,406		1,930		—			4,638
Operating lease assets	—		173		31		232		—			436
Deferred income taxes	—		250		74		279		(231		)	372
Investment in subsidiaries	17,195		10,610		58,610		23,019		(109,434		)	—
Intercompany loans receivable	—		2,643		2,983		38,671		(44,297		)	—
Other assets	—		817		129		733		—			1,679
Total assets	$	17,204	$	19,517	$	75,376	$	79,206	$	(158,498	)	$	32,805
Liabilities and shareholders’    equity
Current liabilities
Short-term debt	$	—	$	255	$	—	$	—	$	—		$	255
Current portion of long-term debt	—		4		242		2		—			248
Accounts payable	—		529		340		1,245		—			2,114
Intercompany accounts payable	25		953		2,275		1,224		(4,477		)	—
Accrued compensation	—		113		58		278		—			449
Liabilities held for sale	—		—		232		93		—			325
Other current liabilities	1		531		400		809		—			1,741
Total current liabilities	26		2,385		3,547		3,651		(4,477		)	5,132
Noncurrent liabilities
Long-term debt	—		5,886		1,921		12		—			7,819
Pension liabilities	—		420		122		920		—			1,462
Other postretirement benefits    liabilities	—		172		80		76		—			328
Operating lease liabilities	—		128		21		182		—			331
Deferred income taxes	—		—		432		195		(231		)	396
Intercompany loans payable	1,096		5,120		36,000		2,081		(44,297		)	—
Other noncurrent liabilities	—		570		272		362		—			1,204
Total noncurrent liabilities	1,096		12,296		38,848		3,828		(44,528		)	11,540
Shareholders’ equity
Eaton shareholders’ equity	16,082		4,836		32,981		71,676		(109,493		)	16,082
Noncontrolling interests	—		—		—		51		—			51
Total equity	16,082		4,836		32,981		71,727		(109,493		)	16,133
Total liabilities and equity	$	17,204	$	19,517	$	75,376	$	79,206	$	(158,498	)	$	32,805

CONDENSED CONSOLIDATING BALANCE SHEETS DECEMBER 31, 2018
	Eaton Corporation plc		Eaton Corporation		Guarantors		Other subsidiaries		Consolidating adjustments			Total
Assets
Current assets
Cash	$	1	$	21	$	1	$	260	$	—		$	283
Short-term investments	—		—		—		157		—			157
Accounts receivable - net	—		501		1,381		1,976		—			3,858
Intercompany accounts receivable	—		2,457		1,877		2,159		(6,493		)	—
Inventory	—		592		714		1,555		(76		)	2,785
Prepaid expenses and other    current assets	—		109		29		355		14			507
Total current assets	1		3,680		4,002		6,462		(6,555		)	7,590
Property, plant and equipment - net	—		858		663		1,946		—			3,467
Other noncurrent assets
Goodwill	—		1,742		6,293		5,293		—			13,328
Other intangible assets	—		322		2,860		1,664		—			4,846
Deferred income taxes	—		252		134		287		(380		)	293
Investment in subsidiaries	16,476		13,101		68,196		32,625		(130,398		)	—
Intercompany loans receivable	1,508		2,208		8,406		39,757		(51,879		)	—
Other assets	—		758		115		695		—			1,568
Total assets	$	17,985	$	22,921	$	90,669	$	88,729	$	(189,212	)	$	31,092
Liabilities and shareholders’    equity
Current liabilities
Short-term debt	$	—	$	388	$	—	$	26	$	—		$	414
Current portion of long-term debt	—		338		—		1		—			339
Accounts payable	—		515		397		1,218		—			2,130
Intercompany accounts payable	32		1,718		2,864		1,879		(6,493		)	—
Accrued compensation	—		139		67		251		—			457
Other current liabilities	30		536		386		864		(2		)	1,814
Total current liabilities	62		3,634		3,714		4,239		(6,495		)	5,154
Noncurrent liabilities
Long-term debt	—		5,814		945		7		2			6,768
Pension liabilities	—		391		122		791		—			1,304
Other postretirement benefits    liabilities	—		168		81		72		—			321
Deferred income taxes	—		1		553		175		(380		)	349
Intercompany loans payable	1,816		7,681		39,552		2,830		(51,879		)	—
Other noncurrent liabilities	—		391		290		373		—			1,054
Total noncurrent liabilities	1,816		14,446		41,543		4,248		(52,257		)	9,796
Shareholders’ equity
Eaton shareholders’ equity	16,107		4,841		45,412		80,207		(130,460		)	16,107
Noncontrolling interests	—		—		—		35		—			35
Total equity	16,107		4,841		45,412		80,242		(130,460		)	16,142
Total liabilities and equity	$	17,985	$	22,921	$	90,669	$	88,729	$	(189,212	)	$	31,092

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS DECEMBER 31, 2019
	Eaton Corporation plc			Eaton Corporation			Guarantors			Other subsidiaries			Consolidating adjustments			Total
Net cash provided by (used in)    operating activities	$	(78	)	$	1,316		$	652		$	1,561		$	—		$	3,451
Investing activities
Capital expenditures for property,    plant and equipment	—			(101		)	(114		)	(372		)	—			(587		)
Cash paid for acquisitions of    businesses, net of cash acquired	—			(152		)	(30		)	(998		)	—			(1,180		)
Payments for sale of a business	—			—			—			(36		)	—			(36		)
Sales (purchases) of short-term investments - net	—			—			—			(70		)	—			(70		)
Loans to affiliates	—			(470		)	(811		)	(8,440		)	9,721			—
Repayments of loans from affiliates	—			841			—			6,830			(7,671		)	—
Proceeds from (payments for) settlement of currency exchange contracts not designated as hedges - net	—			3			—			51			—			54
Other - net	—			(32		)	29			(44		)	—			(47		)
Net cash provided by (used in)     investing activities	—			89			(926		)	(3,079		)	2,050			(1,866		)
Financing activities
Proceeds from borrowings	—			—			1,232			—			—			1,232
Payments on borrowings	—			(474		)	—			(33		)	—			(507		)
Proceeds from borrowings from    affiliates	2,426			5,341			673			1,281			(9,721		)	—
Payments on borrowings from    affiliates	(185		)	(6,286		)	(459		)	(741		)	7,671			—
Other intercompany financing    activities	—			51			(1,162		)	1,111			—			—
Cash dividends paid	(1,201		)	—			—			—			—			(1,201		)
Exercise of employee stock options	66			—			—			—			—			66
Repurchase of shares	(1,029		)	—			—			—			—			(1,029		)
Employee taxes paid from shares    withheld	—			(31		)	(5		)	(10		)	—			(46		)
Other - net	—			—			(6		)	(3		)	—			(9		)
Net cash provided by (used in)    financing activities	77			(1,399		)	273			1,605			(2,050		)	(1,494		)
Effect of currency on cash	—			—			—			(4		)	—			(4		)
Total increase (decrease) in cash	(1		)	6			(1		)	83			—			87
Cash at the beginning of the period	1			21			1			260			—			283
Cash at the end of the period	$	—		$	27		$	—		$	343		$	—		$	370

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS DECEMBER 31, 2018
	Eaton Corporation plc			Eaton Corporation			Guarantors			Other subsidiaries			Consolidating adjustments			Total
Net cash provided by (used in)    operating activities	$	(26	)	$	(84	)	$	220		$	2,643		$	(95	)	$	2,658
Investing activities
Capital expenditures for property,    plant and equipment	—			(98		)	(91		)	(376		)	—			(565		)
Sales (purchases) of short-term investments - net	—			—			—			355			—			355
Investments in affiliates	(4		)	(36		)	—			—			40			—
Loans to affiliates	—			(100		)	(84		)	(6,442		)	6,626			—
Repayments of loans from affiliates	—			647			1,044			4,455			(6,146		)	—
Proceeds from (payments for) settlement of currency exchange contracts not designated as hedges - net	—			11			—			(121		)	—			(110		)
Other - net	—			(78		)	23			(23		)	—			(78		)
Net cash provided by (used in)     investing activities	(4		)	346			892			(2,152		)	520			(398		)
Financing activities
Proceeds from borrowings	—			388			—			22			—			410
Payments on borrowings	—			(538		)	(35		)	(1		)	—			(574		)
Proceeds from borrowings from    affiliates	3,756			2,452			318			100			(6,626		)	—
Payments on borrowings from    affiliates	(1,334		)	(3,178		)	(710		)	(924		)	6,146			—
Capital contributions from affiliates	—			—			—			40			(40		)	—
Other intercompany financing    activities	—			463			(692		)	229			—			—
Cash dividends paid	(1,149		)	—			—			—			—			(1,149		)
Cash dividends paid to affiliates	—			—			—			(95		)	95			—
Exercise of employee stock options	29			—			—			—			—			29
Repurchase of shares	(1,271		)	—			—			—			—			(1,271		)
Employee taxes paid from shares    withheld	—			(16		)	(5		)	(3		)	—			(24		)
Other - net	—			(1		)	—			(1		)	—			(2		)
Net cash provided by (used in)    financing activities	31			(430		)	(1,124		)	(633		)	(425		)	(2,581		)
Effect of currency on cash	—			—			—			43			—			43
Total increase (decrease) in cash	1			(168		)	(12		)	(99		)	—			(278		)
Cash at the beginning of the period	—			189			13			359			—			561
Cash at the end of the period	$	1		$	21		$	1		$	260		$	—		$	283

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS DECEMBER 31, 2017
	Eaton Corporation plc			Eaton Corporation			Guarantors			Other subsidiaries			Consolidating adjustments			Total
Net cash provided by (used in)    operating activities	$	258		$	(470	)	$	15		$	4,472		$	(1,609	)	$	2,666
Investing activities
Capital expenditures for property,    plant and equipment	—			(92		)	(110		)	(318		)	—			(520		)
Proceeds from the sales    of businesses	—			338			—			269			—			607
Cash received from sales (paid for    acquisitions) of affiliates	—			—			(92		)	92			—			—
Sales (purchases) of short-term    investments - net	—			—			—			(298		)	—			(298		)
Investments in affiliates	(190		)	(108		)	—			(90		)	388			—
Return of investments in affiliates	—			—			90			—			(90		)	—
Loans to affiliates	—			(443		)	(415		)	(6,309		)	7,167			—
Repayments of loans from affiliates	—			303			385			3,478			(4,166		)	—
Other - net	—			(45		)	10			29			—			(6		)
Net cash provided by (used in)    investing activities	(190		)	(47		)	(132		)	(3,147		)	3,299			(217		)
Financing activities
Proceeds from borrowings	—			1,000			—			—			—			1,000
Payments on borrowings	—			(1,250		)	(297		)	(7		)	—			(1,554		)
Proceeds from borrowings from    affiliates	2,605			3,129			991			442			(7,167		)	—
Payments on borrowings from    affiliates	(822		)	(2,904		)	(353		)	(87		)	4,166			—
Capital contribution from affiliates	—			—			90			298			(388		)	—
Return of capital to affiliates	—			—			—			(90		)	90			—
Other intercompany financing    activities	—			652			500			(1,152		)	—			—
Cash dividends paid	(1,068		)	—			—			—			—			(1,068		)
Cash dividends paid to affiliates	—			—			(800		)	(809		)	1,609			—
Exercise of employee stock options	66			—			—			—			—			66
Repurchase of shares	(850		)	—			—			—			—			(850		)
Employee taxes paid from shares    withheld	—			(15		)	(4		)	(3		)	—			(22		)
Other - net	—			(8		)	(1		)	(5		)	—			(14		)
Net cash provided by (used in)    financing activities	(69		)	604			126			(1,413		)	(1,690		)	(2,442		)
Effect of currency on cash	—			—			—			11			—			11
Total increase (decrease) in cash	(1		)	87			9			(77		)	—			18
Cash at the beginning of the period	1			102			4			436			—			543
Cash at the end of the period	$	—		$	189		$	13		$	359		$	—		$	561

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Commitments and Contingencies

12 Months Ended

Dec. 31, 2019

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

COMMITMENTS AND 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 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 could result in plaintiffs suing Pepsi under various theories. Cooper submitted various expert reports and, among other things, Cooper’s experts opined that Pepsi had 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 believed that no additional amount should be contributed. Pepsi argued that an additional $347 should be contributed. Cooper and its expert disagreed with Pepsi’s argument and believed that Pepsi’s recalculation was flawed and failed to comply with the instructions of the panel. On August 23, 2018, the panel issued its final award and ordered Cooper to pay $293 to Pneumo Abex. On August 30, 2018, Pepsi sought to confirm the award in Texas state court, which Cooper opposed on October 9, 2018. Cooper further requested that the court vacate the award on various grounds, including that Cooper was prejudiced by the conduct of the proceedings, the panel exceeded its powers, and because the panel denied Cooper a full and fair opportunity to present certain evidence. The court confirmed the award at the confirmation hearing, which was held on October 12, 2018. On November 2, 2018, the Company appealed. On November 28, 2018, the Company paid $297, the full judgment plus accrued post-judgment interest, to Pneumo Abex and preserved its rights, including to appeal. On April 25, 2019, the appeal that Cooper filed was dismissed.

Environmental Contingencies

Eaton has established policies to ensure that its operations are conducted in keeping with good corporate citizenship and with a positive commitment to the protection of the natural and workplace environments. The Company's manufacturing facilities are required to be certified to ISO 14001, an international standard for environmental management systems. The Company routinely reviews EHS performance at each of its facilities and continuously strives to improve pollution prevention.

Eaton is involved in remedial response and voluntary environmental remediation at a number of sites, including certain of its currently-owned or formerly-owned plants. The Company has also been named a potentially responsible party under the United States federal Superfund law, or the state equivalents thereof, at a number of disposal sites. The Company became involved in these sites as a result of government action or in connection with business acquisitions. At the end of 2019, the Company was involved with a total of 111 sites worldwide, including the Superfund sites mentioned above, with none of these sites being individually significant to the Company.

Remediation activities, generally involving soil and/or groundwater contamination, include pre-cleanup activities such as fact finding and investigation, risk assessment, feasibility study, design and action planning, performance (where actions may range from monitoring, to removal of contaminants, to installation of longer-term remediation systems), and operation and maintenance of a remediation system. The extent of expected remediation activities and costs varies by site. A number of factors affect the cost of environmental remediation, including the number of parties involved at a particular site, the determination of the extent of contamination, the length of time the remediation may require, the complexity of environmental regulations, and the continuing advancement of remediation technology. Taking these factors into account, Eaton has estimated the costs of remediation, which will be paid over a period of years. The Company accrues an amount on an undiscounted basis, consistent with the estimates of these costs, when it is probable that a liability has been incurred. Actual results may differ from these estimates. At December 31, 2019 and 2018, the Company had an accrual totaling $104 and $116, respectively, for these costs.

Based upon Eaton's analysis and subject to the difficulty in estimating these future costs, the Company expects that any sum it may be required to pay in connection with environmental matters is not reasonably possible to exceed the recorded liability by an amount that would have a material effect on its financial position, results of operations or cash flows.

Warranty Accruals

Product warranty accruals are established at the time the related sale is recognized through a charge to Cost of products sold. Warranty accrual estimates are based primarily on historical warranty claim experience and specific customer contracts. Provisions for warranty accruals are comprised of basic warranties for products sold, as well as accruals for product recalls and other events when they are known and estimable. A summary of the current and long-term warranty accruals follows:

	2019			2018			2017
Balance at January 1	$	176		$	188		$	180
Provision	204			139			163
Settled	(175		)	(145		)	(156		)
Other	(2		)	(6		)	1
Warranty accruals reclassified to held for sale	(16		)	—			—
Balance at December 31	$	187		$	176		$	188

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Goodwill and Other Intangible Assets

12 Months Ended

Dec. 31, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangible Assets

GOODWILL AND OTHER INTANGIBLE ASSETS

Changes in the carrying amount of goodwill by segment follow:

	January 1, 2018		Translation			December 31, 2018		Additions		Goodwill reclassified to held for sale			Translation			December 31, 2019
Electrical Products	$	6,678	$	(116	)	$	6,562	$	—	$	(470	)	$	(2	)	$	6,090
Electrical Systems and Services	4,311		(70		)	4,241		163		—			6			4,410
Hydraulics	1,257		(45		)	1,212		—		—			(13		)	1,199
Aerospace	947		(6		)	941		442		—			3			1,386
Vehicle	294		(2		)	292		—		—			(1		)	291
eMobility	81		(1		)	80		—		—			—			80
Total	$	13,568	$	(240	)	$	13,328	$	605	$	(470	)	$	(7	)	$	13,456

The 2019 additions to goodwill relate to the anticipated synergies of acquiring Souriau-Sunbank, Ulusoy Elektrik and ISG. The allocations of the purchase price from these acquisitions are preliminary and will be completed during the measurement period.

A summary of other intangible assets follows:

	2019				2018
	Historical cost		Accumulated amortization		Historical cost		Accumulated amortization
Intangible assets not subject to amortization
Trademarks	$	1,516			$	1,626
Intangible assets subject to amortization
Customer relationships	$	3,260	$	1,634	$	3,463	$	1,600
Patents and technology	1,542		704		1,329		646
Trademarks	1,057		457		1,032		419
Other	92		34		92		31
Total intangible assets subject to amortization	$	5,951	$	2,829	$	5,916	$	2,696

Amortization expense related to intangible assets subject to amortization in 2019, and estimated amortization expense for each of the next five years, follows:

2019	$	354
2020	351
2021	341
2022	332
2023	286
2024	275

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Fair Value Measurements

12 Months Ended

Dec. 31, 2019

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		Quoted prices in active markets for identical assets (Level 1)		Other observable inputs (Level 2)		Unobservable inputs (Level 3)
2019
Cash	$	370	$	370	$	—	$	—
Short-term investments	221		221		—		—
Net derivative contracts	53		—		53		—
2018
Cash	$	283	$	283	$	—	$	—
Short-term investments	157		157		—		—
Net derivative contracts	14		—		14		—

Eaton values its financial instruments using an industry standard market approach, in which prices and other relevant information is generated by market transactions involving identical or comparable assets or liabilities. No financial instruments were measured using unobservable inputs.

Other Fair Value Measurements

Long-term debt and the current portion of long-term debt had a carrying value of $8,067 and fair value of $8,638 at December 31, 2019 compared to $7,107 and $7,061, respectively, at December 31, 2018. The fair value of Eaton's debt instruments was estimated using prevailing market interest rates on debt with similar creditworthiness, terms and maturities and is considered a Level 2 fair value measurement.

As discussed in Note 2, on July 31, 2017 Eaton sold a 50% interest in its heavy-duty and medium-duty commercial vehicle automated transmission business to Cummins, Inc. Eaton's remaining 50% interest was remeasured to a fair value of $600 on July 31, 2017 using a discounted cash flow model which is considered a Level 3 fair value measurement. The model includes estimates of future cash flows, future growth rates, terminal value amounts, and the applicable weighted-average cost of capital used to discount those estimated cash flows. Eaton accounts for its investment on the equity method of accounting.

Short-Term Investments

Eaton invests excess cash generated from operations in short-term marketable investments. A summary of the carrying value, which approximates the fair value due to the short-term maturities of these investments, follows:

	2019		2018
Time deposits and certificates of deposit with banks	$	150	$	111
Money market investments	71		46
Total short-term investments	$	221	$	157

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Business Segment and Geographic Region Information - Geographic Region Information (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Revenues from External Customers and Long-Lived Assets [Line Items]
Net sales	$ 21,390	$ 21,609	$ 20,404
Net property, plant and equipment	3,496	3,467	3,502
UNITED STATES
Revenues from External Customers and Long-Lived Assets [Line Items]
Net sales	12,336	12,034	11,222
Net property, plant and equipment	1,821	1,898	1,872
Canada
Revenues from External Customers and Long-Lived Assets [Line Items]
Net sales	941	931	942
Net property, plant and equipment	24	20	20
Latin America [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Net sales	1,312	1,442	1,485
Net property, plant and equipment	316	286	290
Europe [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Net sales	4,311	4,553	4,394
Net property, plant and equipment	797	723	769
Asia Pacific [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Net sales	2,490	2,649	2,361
Net property, plant and equipment	$ 538	$ 540	$ 551

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Condensed Consolidating Financial Statements - Condensed Consolidating Statements of Cash Flows (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Condensed Consolidating Statements of Cash Flows [Line Items]
Net cash provided by (used in) operating activities	$ 3,451	$ 2,658	$ 2,666
Investing activities
Capital expenditures for property, plant and equipment	(587)	(565)	(520)
Cash paid for acquisitions of businesses, net of cash acquired	(1,180)	0	0
Proceeds from (payments for) from sale of business	(36)		(607)
Sales (purchases) of short-term investments - net	(70)	355	(298)
Investments in affiliates		0	0
Return of capital contributions from affiliates			0
Loans to affiliates	0	0	0
Repayments of loans from affiliates	0	0	0
Proceeds from (payments for) settlement of currency exchange contracts not designated as hedges - net	54	(110)	0
Other - net	(47)	(78)	(6)
Net cash used in investing activities	(1,866)	(398)	(217)
Financing activities
Proceeds from borrowings	1,232	410	1,000
Payments on borrowings	(507)	(574)	(1,554)
Proceeds from borrowings from affiliates	0	0	0
Payments on borrowings from affiliates	0	0	0
Capital contributions from affiliates		0	0
Return of capital to affiliates			0
Other intercompany financing activities	0	0	0
Cash dividends paid	(1,201)	(1,149)	(1,068)
Cash dividends paid to affiliates		0	0
Exercise of employee stock options	66	29	66
Repurchase of shares	(1,029)	(1,271)	(850)
Employee taxes paid from shares withheld	(46)	(24)	(22)
Other - net	(9)	(2)	(14)
Net cash used in financing activities	(1,494)	(2,581)	(2,442)
Effect of currency on cash	(4)	43	11
Total increase (decrease) in cash	87	(278)	18
Cash at the beginning of the period	283	561	543
Cash at the end of the period	370	283	561
Guarantors
Condensed Consolidating Statements of Cash Flows [Line Items]
Net cash provided by (used in) operating activities	652	220	15
Investing activities
Capital expenditures for property, plant and equipment	(114)	(91)	(110)
Cash paid for acquisitions of businesses, net of cash acquired	(30)		(92)
Proceeds from (payments for) from sale of business	0		0
Sales (purchases) of short-term investments - net	0	0	0
Investments in affiliates		0	0
Return of capital contributions from affiliates			90
Loans to affiliates	(811)	(84)	(415)
Repayments of loans from affiliates	0	1,044	385
Proceeds from (payments for) settlement of currency exchange contracts not designated as hedges - net	0	0
Other - net	29	23	10
Net cash used in investing activities	(926)	892	(132)
Financing activities
Proceeds from borrowings	1,232	0	0
Payments on borrowings	0	(35)	(297)
Proceeds from borrowings from affiliates	673	318	991
Payments on borrowings from affiliates	(459)	(710)	(353)
Capital contributions from affiliates		0	90
Return of capital to affiliates			0
Other intercompany financing activities	(1,162)	(692)	500
Cash dividends paid	0	0	0
Cash dividends paid to affiliates		0	(800)
Exercise of employee stock options	0	0	0
Repurchase of shares	0	0	0
Employee taxes paid from shares withheld	(5)	(5)	(4)
Other - net	(6)	0	(1)
Net cash used in financing activities	273	(1,124)	126
Effect of currency on cash	0	0	0
Total increase (decrease) in cash	(1)	(12)	9
Cash at the beginning of the period	1	13	4
Cash at the end of the period	0	1	13
Other subsidiaries
Condensed Consolidating Statements of Cash Flows [Line Items]
Net cash provided by (used in) operating activities	1,561	2,643	4,472
Investing activities
Capital expenditures for property, plant and equipment	(372)	(376)	(318)
Cash paid for acquisitions of businesses, net of cash acquired	(998)		92
Proceeds from (payments for) from sale of business	36		(269)
Sales (purchases) of short-term investments - net	(70)	355	(298)
Investments in affiliates		0	(90)
Return of capital contributions from affiliates			0
Loans to affiliates	(8,440)	(6,442)	(6,309)
Repayments of loans from affiliates	6,830	4,455	3,478
Proceeds from (payments for) settlement of currency exchange contracts not designated as hedges - net	51	(121)
Other - net	(44)	(23)	29
Net cash used in investing activities	(3,079)	(2,152)	(3,147)
Financing activities
Proceeds from borrowings	0	22	0
Payments on borrowings	(33)	(1)	(7)
Proceeds from borrowings from affiliates	1,281	100	442
Payments on borrowings from affiliates	(741)	(924)	(87)
Capital contributions from affiliates		40	298
Return of capital to affiliates			(90)
Other intercompany financing activities	1,111	229	(1,152)
Cash dividends paid	0	0	0
Cash dividends paid to affiliates		(95)	(809)
Exercise of employee stock options	0	0	0
Repurchase of shares	0	0	0
Employee taxes paid from shares withheld	(10)	(3)	(3)
Other - net	(3)	(1)	(5)
Net cash used in financing activities	1,605	(633)	(1,413)
Effect of currency on cash	(4)	43	11
Total increase (decrease) in cash	83	(99)	(77)
Cash at the beginning of the period	260	359	436
Cash at the end of the period	343	260	359
Eaton Corporation plc
Condensed Consolidating Statements of Cash Flows [Line Items]
Net cash provided by (used in) operating activities	(78)	(26)	258
Investing activities
Capital expenditures for property, plant and equipment	0	0	0
Cash paid for acquisitions of businesses, net of cash acquired	0		0
Proceeds from (payments for) from sale of business	0		0
Sales (purchases) of short-term investments - net	0	0	0
Investments in affiliates		(4)	(190)
Return of capital contributions from affiliates			0
Loans to affiliates	0	0	0
Repayments of loans from affiliates	0	0	0
Proceeds from (payments for) settlement of currency exchange contracts not designated as hedges - net	0	0
Other - net	0	0	0
Net cash used in investing activities	0	(4)	(190)
Financing activities
Proceeds from borrowings	0	0	0
Payments on borrowings	0	0	0
Proceeds from borrowings from affiliates	2,426	3,756	2,605
Payments on borrowings from affiliates	(185)	(1,334)	(822)
Capital contributions from affiliates		0	0
Return of capital to affiliates			0
Other intercompany financing activities	0	0	0
Cash dividends paid	(1,201)	(1,149)	(1,068)
Cash dividends paid to affiliates		0	0
Exercise of employee stock options	66	29	66
Repurchase of shares	(1,029)	(1,271)	(850)
Employee taxes paid from shares withheld	0	0	0
Other - net	0	0	0
Net cash used in financing activities	77	31	(69)
Effect of currency on cash	0	0	0
Total increase (decrease) in cash	(1)	1	(1)
Cash at the beginning of the period	1	0	1
Cash at the end of the period	0	1	0
Eaton Corporation
Condensed Consolidating Statements of Cash Flows [Line Items]
Net cash provided by (used in) operating activities	1,316	(84)	(470)
Investing activities
Capital expenditures for property, plant and equipment	(101)	(98)	(92)
Cash paid for acquisitions of businesses, net of cash acquired	(152)		0
Proceeds from (payments for) from sale of business	0		(338)
Sales (purchases) of short-term investments - net	0	0	0
Investments in affiliates		(36)	(108)
Return of capital contributions from affiliates			0
Loans to affiliates	(470)	(100)	(443)
Repayments of loans from affiliates	841	647	303
Proceeds from (payments for) settlement of currency exchange contracts not designated as hedges - net	3	11
Other - net	(32)	(78)	(45)
Net cash used in investing activities	89	346	(47)
Financing activities
Proceeds from borrowings	0	388	1,000
Payments on borrowings	(474)	(538)	(1,250)
Proceeds from borrowings from affiliates	5,341	2,452	3,129
Payments on borrowings from affiliates	(6,286)	(3,178)	(2,904)
Capital contributions from affiliates		0	0
Return of capital to affiliates			0
Other intercompany financing activities	51	463	652
Cash dividends paid	0	0	0
Cash dividends paid to affiliates		0	0
Exercise of employee stock options	0	0	0
Repurchase of shares	0	0	0
Employee taxes paid from shares withheld	(31)	(16)	(15)
Other - net	0	(1)	(8)
Net cash used in financing activities	(1,399)	(430)	604
Effect of currency on cash	0	0	0
Total increase (decrease) in cash	6	(168)	87
Cash at the beginning of the period	21	189	102
Cash at the end of the period	27	21	189
Consolidating adjustments
Condensed Consolidating Statements of Cash Flows [Line Items]
Net cash provided by (used in) operating activities	0	(95)	(1,609)
Investing activities
Capital expenditures for property, plant and equipment	0	0	0
Cash paid for acquisitions of businesses, net of cash acquired	0		0
Proceeds from (payments for) from sale of business	0		0
Sales (purchases) of short-term investments - net	0	0	0
Investments in affiliates		40	388
Return of capital contributions from affiliates			(90)
Loans to affiliates	9,721	6,626	7,167
Repayments of loans from affiliates	(7,671)	(6,146)	(4,166)
Proceeds from (payments for) settlement of currency exchange contracts not designated as hedges - net	0	0
Other - net	0	0	0
Net cash used in investing activities	2,050	520	3,299
Financing activities
Proceeds from borrowings	0	0	0
Payments on borrowings	0	0	0
Proceeds from borrowings from affiliates	(9,721)	(6,626)	(7,167)
Payments on borrowings from affiliates	7,671	6,146	4,166
Capital contributions from affiliates		(40)	(388)
Return of capital to affiliates			90
Other intercompany financing activities	0	0	0
Cash dividends paid	0	0	0
Cash dividends paid to affiliates		95	1,609
Exercise of employee stock options	0	0	0
Repurchase of shares	0	0	0
Employee taxes paid from shares withheld	0	0	0
Other - net	0	0	0
Net cash used in financing activities	(2,050)	(425)	(1,690)
Effect of currency on cash	0	0	0
Total increase (decrease) in cash	0	0	0
Cash at the beginning of the period	0	0	0
Cash at the end of the period	$ 0	$ 0	$ 0

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Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Income Tax Disclosure [Abstract]

Income (loss) before income taxes

Income (loss) before income taxes and income tax (benefit) expense are summarized below based on the geographic location of the operation to which such earnings and income taxes are attributable.

	Income (loss) before income taxes
	2019			2018			2017
Ireland	$	(201	)	$	(365	)	$	(1,090	)
Foreign	2,792			2,789			4,458
Total income before income taxes	$	2,591		$	2,424		$	3,368

Income tax (benefit) expense

	Income tax expense (benefit)
	2019			2018			2017
Current
Ireland	$	26		$	47		$	1
Foreign	410			370			357
Total current income tax expense	436			417			358
Deferred
Ireland	3			6			—
Foreign	(61		)	(145		)	24
Total deferred income tax expense (benefit)	(58		)	(139		)	24
Total income tax expense	$	378		$	278		$	382

Reconciliations of income taxes from the appropriate statutory rate

Reconciliations of income taxes from the Ireland national statutory rate of 25% to the consolidated effective income tax rate follow:

	2019		2018		2017
Income taxes at the applicable statutory rate	25.0	%	25.0	%	25.0	%
Ireland operations
Ireland tax on trading income	(1.0	)%	(2.0	)%	—	%
Nondeductible interest expense	3.9	%	7.8	%	8.2	%
Ireland Other - net	0.1	%	0.1	%	—	%
Foreign operations
U.S. federal tax rate change	—	%	—	%	(7.5	)%
U.S. tax on foreign earnings	—	%	—	%	4.8	%
U.S. foreign tax credit	0.8	%	(0.2	)%	(3.9	)%
Tax on foreign currency loss	—	%	(1.6	)%	—	%
Earnings taxed at other than    the applicable statutory tax rate	(14.8	)%	(19.6	)%	(21.2	)%
Other items	2.5	%	2.3	%	3.1	%
Worldwide operations
Adjustments to tax liabilities	(0.5	)%	1.1	%	(1.8	)%
Adjustments to valuation allowances	(1.4	)%	(1.4	)%	4.6	%
Effective income tax expense rate	14.6	%	11.5	%	11.3	%

Worldwide income tax payments

Worldwide income tax payments, net of tax refunds, follow:

2019	$	425
2018	379
2017	288

Components of current and long-term deferred income taxes

Components of noncurrent deferred income taxes follow:

	2019			2018
	Noncurrent assets and liabilities			Noncurrent assets and liabilities
Accruals and other adjustments
Employee benefits	$	514		$	481
Depreciation and amortization	(1,245		)	(1,198		)
Other accruals and adjustments	498			434
Ireland income tax loss carryforwards	1			1
Foreign income tax loss carryforwards	1,826			1,915
Foreign income tax credit carryforwards	349			396
Valuation allowance for income tax loss and income tax    credit carryforwards	(1,914		)	(2,032		)
Other valuation allowances	(52		)	(53		)
Total deferred income taxes	(23		)	(56		)
Deferred income taxes reported as assets held for sale	1			—
Deferred income taxes	$	(24	)	$	(56	)

Non-United States subsidiaries tax loss carryforwards and income tax credit carryforwards and expiration dates

These carryforwards and their respective expiration dates are summarized below:

	2020 through 2024		2025 through 2029		2030 through 2034		2035 through 2044		Not subject to expiration		Valuation allowance
Ireland income tax loss carryforwards	$	—	$	—	$	—	$	—	$	8	$	—
Ireland deferred income tax assets for income tax loss carryforwards	—		—		—		—		1		(1		)

United States state and local tax loss carryforwards and tax credit carryforwards and expiration dates

These carryforwards and their respective expiration dates are summarized below:

	2020 through 2024		2025 through 2029		2030 through 2034		2035 through 2044		Not subject to expiration		Valuation allowance
Foreign income tax loss carryforwards	$	874	$	52	$	7,931	$	367	$	3,233	$	—
Foreign deferred income tax assets for income tax loss carryforwards	108		23		819		108		797		(1,690		)
Foreign deferred income tax assets for income tax loss carryforwards after ASU 2013-11	90		22		810		108		796		(1,690		)
Foreign income tax credit carryforwards	115		189		40		90		30		(223		)
Foreign income tax credit carryforwards after ASU 2013-11	111		165		24		19		30		(223		)

Summary of gross unrecognized income tax benefits

A summary of gross unrecognized income tax benefits follows:

	2019			2018			2017
Balance at January 1	$	913		$	735		$	629
Increases and decreases as a result of positions taken during prior years
Transfers from valuation allowances	15			2			—
Other increases, including currency translation	22			164			10
Other decreases, including currency translation	(10		)	(35		)	(30		)
Increases as a result of positions taken during the current year	80			69			162
Decreases relating to settlements with tax authorities	(16		)	(3		)	(10		)
Decreases as a result of a lapse of the applicable statute of limitations	(3		)	(19		)	(26		)
Balance at December 31	$	1,001		$	913		$	735

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Derivative Financial Instruments and Hedging Activities (Tables)

12 Months Ended

Dec. 31, 2019

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 Consolidated Balance Sheets follows:

	Notional amount		Other  current assets		Other noncurrent assets		Other current liabilities		Other noncurrent liabilities		Type of hedge	Term
December 31, 2019
Derivatives designated as hedges
Fixed-to-floating interest rate swaps	$	2,225	$	—	$	57	$	—	$	—	Fair value	12 months to 15 years
Forward starting floating-to-fixed interest rate swaps	500		—		3		—		42		Cash flow	13 to 33 years
Currency exchange contracts	1,146		14		3		11		6		Cash flow	1 to 36 months
Commodity contracts	9		—		—		—		—		Cash flow	1 to 9 months
Total			$	14	$	63	$	11	$	48
Derivatives not designated as hedges
Currency exchange contracts	$	4,975	$	48			$	13				1 to 12 months
Commodity contracts	3		—				—					1 month
Total			$	48			$	13

December 31, 2018
Derivatives designated as hedges
Fixed-to-floating interest rate swaps	$	2,550	$	—	$	22	$	1	$	26	Fair value	3 months to 16 years
Forward starting floating-to-fixed interest rate swaps	100		—		—		—		3		Cash flow	34 years
Currency exchange contracts	951		19		2		11		8		Cash flow	1 to 36 months
Total			$	19	$	24	$	12	$	37
Derivatives not designated as hedges
Currency exchange contracts	$	3,886	$	40			$	20				1 to 12 months
Total			$	40			$	20

Schedule of Notional Amounts of Outstanding Derivative Positions

As of December 31, 2019, the volume of outstanding commodity contracts that were entered into to hedge forecasted transactions:

Commodity	December 31, 2019		Term
Copper	2	millions of pounds	1 to 4 months
Gold	2,158	Troy ounces	1 to 9 months

A summary of interest rate swaps outstanding at December 31, 2019, follows:

Fixed-to-Floating Interest Rate Swaps

Notional amount	Fixed interest rate received	Floating interest rate paid	Basis for contracted floating interest rate paid
150	3.88%	4.35%	1 month LIBOR + 2.12%
275	3.47%	3.97%	1 month LIBOR + 1.74%
100	8.10%	8.13%	1 month LIBOR + 5.90%
1,400	2.75%	2.85%	1 month LIBOR + 0.58%
200	3.68%	3.30%	1 month LIBOR + 1.07%
25	7.63%	4.87%	6 month LIBOR + 2.48%
50	7.65%	5.21%	6 month LIBOR + 2.57%
25	5.45%	2.79%	6 month LIBOR + 0.28%

Forward Starting Floating-to-Fixed Interest Rate Swaps

Notional amount		Floating interest rate to be received	Fixed interest rate to be paid	Basis for contracted floating interest rate received
$	50	—%	3.10%	3 month LIBOR + 0.00%
50		—%	3.06%	3 month LIBOR + 0.00%
50		—%	2.80%	3 month LIBOR + 0.00%
50		—%	2.81%	3 month LIBOR + 0.00%
50		—%	2.64%	3 month LIBOR + 0.00%
50		—%	2.64%	3 month LIBOR + 0.00%
50		—%	2.30%	3 month LIBOR + 0.00%
50		—%	2.08%	3 month LIBOR + 0.00%
50		—%	1.77%	3 month LIBOR + 0.00%
50		—%	1.51%	3 month LIBOR + 0.00%

Schedule Of Derivative Instruments Recorded In Balance Sheet [Table Text Block]

The following amounts were recorded on the Consolidated Balance Sheets related to fixed-to-floating interest rate swaps:

	Carrying amount of the hedged assets (liabilities)			Cumulative amount of fair value hedging adjustment included in the carrying amount of the hedged asset (liabilities) (a)
Location on Consolidated Balance Sheets	December 31, 2019			December 31, 2019
Long-term debt	$	(2,838	)	$	(97	)

^(a) At December 31, 2019, these amounts include the cumulative liability amount of fair value hedging adjustments remaining for which the hedge accounting has been discontinued of $40.

Schedule of Impact of Hedging Activities to Consolidated Statement of Income

The impact of hedging activities to the Consolidated Statements of Income are as follow:

	2019
	Net Sales			Cost of products sold			Interest expense - net
Amounts from Consolidated Statements of Income	$	21,390		$	14,338		$	236
Gain (loss) on derivatives designated as cash flow hedges
Currency exchange contracts
Hedged item	$	7		$	(12	)	$	—
Derivative designated as hedging instrument	(7		)	12			—
Commodity contracts
Hedged item	$	—		$	—		$	—
Derivative designated as hedging instrument	—			—			—
Gain (loss) on derivatives designated as fair value hedges
Fixed-to-floating interest rate swaps
Hedged item	$	—		$	—		$	(62	)
Derivative designated as hedging instrument	—			—			62

Amounts Recognized in Net Income

The impact of derivatives not designated as hedges to the Consolidated Statements of Income are as follow:

	Gain (loss) recognized in Consolidated Statements of Income		Consolidated Statements of Income classification
	2019
Gain (loss) on derivatives not designated as hedges
Currency exchange contracts	$	73	Other income - net
Commodity Contracts	—		Cost of products sold
Total	$	73

Amounts Recognized in Accumulated Other Comprehensive Loss

	Gain (loss) recognized in other comprehensive (loss) income						Location of gain (loss) reclassified from Accumulated other comprehensive loss	Gain (loss) reclassified from Accumulated other comprehensive loss
	2019			2018				2019		2018
Derivatives designated as cash flow hedges
Forward starting floating-to-fixed interest rate swaps	$	(36	)	$	(4	)	Interest expense - net	$	—	$	—
Currency exchange contracts	3			(4		)	Net sales and Cost of products sold	5		(16		)
Commodity contracts	—			—			Cost of products sold	—		—
Non-derivative designated as net investment hedges
Foreign currency denominated debt	15			47			Other income - net	—		—
Total	$	(18	)	$	39			$	5	$	(16	)

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Derivative Financial Instruments and Hedging Activities - Fixed-to-Floating Interest Rate Swaps (Details) $ in Millions	12 Months Ended
	Dec. 31, 2019 USD ($)
Debentures due 2020 [Member]
Derivative [Line Items]
Notional amount	$ 150
Fixed interest rate received (percentage)	3.88%
Floating interest rate paid (percentage)	4.35%
Notes due 2021 [Member]
Derivative [Line Items]
Notional amount	$ 275
Fixed interest rate received (percentage)	3.47%
Floating interest rate paid (percentage)	3.97%
Debentures due 2022 [Member]
Derivative [Line Items]
Notional amount	$ 100
Fixed interest rate received (percentage)	8.10%
Floating interest rate paid (percentage)	8.13%
Senior notes due 2022 [Member]
Derivative [Line Items]
Notional amount	$ 1,400
Fixed interest rate received (percentage)	2.75%
Floating interest rate paid (percentage)	2.85%
Notes due 2023 [Member]
Derivative [Line Items]
Notional amount	$ 200
Fixed interest rate received (percentage)	3.68%
Floating interest rate paid (percentage)	3.30%
Debentures due 2024 [Member]
Derivative [Line Items]
Notional amount	$ 25
Fixed interest rate received (percentage)	7.63%
Floating interest rate paid (percentage)	4.87%
Debentures due 2029 [Member]
Derivative [Line Items]
Notional amount	$ 50
Fixed interest rate received (percentage)	7.65%
Floating interest rate paid (percentage)	5.21%
Debentures due 2034 [Member]
Derivative [Line Items]
Notional amount	$ 25
Fixed interest rate received (percentage)	5.45%
Floating interest rate paid (percentage)	2.79%
London Interbank Offered Rate (LIBOR) [Member] | Debentures due 2020 [Member]
Derivative [Line Items]
Debt instrument, term (in years)	1 month
Basis spread on variable rate (percentage)	2.12%
London Interbank Offered Rate (LIBOR) [Member] | Notes due 2021 [Member]
Derivative [Line Items]
Debt instrument, term (in years)	1 month
Basis spread on variable rate (percentage)	1.74%
London Interbank Offered Rate (LIBOR) [Member] | Debentures due 2022 [Member]
Derivative [Line Items]
Debt instrument, term (in years)	1 month
Basis spread on variable rate (percentage)	5.90%
London Interbank Offered Rate (LIBOR) [Member] | Senior notes due 2022 [Member]
Derivative [Line Items]
Debt instrument, term (in years)	1 month
Basis spread on variable rate (percentage)	0.58%
London Interbank Offered Rate (LIBOR) [Member] | Notes due 2023 [Member]
Derivative [Line Items]
Debt instrument, term (in years)	1 month
Basis spread on variable rate (percentage)	1.07%
London Interbank Offered Rate (LIBOR) [Member] | Debentures due 2024 [Member]
Derivative [Line Items]
Debt instrument, term (in years)	6 months
Basis spread on variable rate (percentage)	2.48%
London Interbank Offered Rate (LIBOR) [Member] | Debentures due 2029 [Member]
Derivative [Line Items]
Debt instrument, term (in years)	6 months
Basis spread on variable rate (percentage)	2.57%
London Interbank Offered Rate (LIBOR) [Member] | Debentures due 2034 [Member]
Derivative [Line Items]
Debt instrument, term (in years)	6 months
Basis spread on variable rate (percentage)	0.28%

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Equity-Based Compensation Information Related to Stock Options (Details) - USD ($) shares in Millions, $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Share-based Payment Arrangement [Abstract]
Pre-tax expense for stock options	$ 9.0	$ 11.0	$ 11.0
After-tax expense for stock options	7.0	9.0	8.0
Proceeds from stock options exercised	67.0	29.0	66.0
Income tax benefit related to stock options exercised
Tax benefit classified in operating activities in the Consolidated Statements of Cash Flows	4.0	3.0	13.0
Intrinsic value of stock options exercised	29.0	17.0	41.0
Total fair value of stock options vested	$ 9.0	$ 11.0	$ 11.0
Stock options exercised, in millions of options	1.2	0.6	1.5
Non-vested stock option compensation expense not yet recognized	$ 10.0
Non-vested stock options weighted-average period for total compensation expense to be recognized ( in years)	1 year 9 months 18 days

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LEASES - Supplemental Cash Flow Information Related To Leases (Details) $ in Millions	12 Months Ended
	Dec. 31, 2019 USD ($)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflows - payments on operating leases	$ (168)
Operating cash outflows - interest payments on finance leases	(1)
Financing cash outflows - payments on finance lease obligations	(6)
Lease Assets Exchanged For Lease Obligations [Abstract]
Operating leases	114
Finance leases	$ 24

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Goodwill and Other Intangible Assets - Schedule of Other Intangible Assets by Major Class (Details) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018
Summary of other intangible assets
Intangible assets not subject to amortization - trademarks	$ 1,516	$ 1,626
Intangible assets subject to amortization
Historical cost	5,951	5,916
Accumulated amortization	2,829	2,696
Customer relationships [Member]
Intangible assets subject to amortization
Historical cost	3,260	3,463
Accumulated amortization	1,634	1,600
Patents and technology [Member]
Intangible assets subject to amortization
Historical cost	1,542	1,329
Accumulated amortization	704	646
Trademarks [Member]
Intangible assets subject to amortization
Historical cost	1,057	1,032
Accumulated amortization	457	419
Other [Member]
Intangible assets subject to amortization
Historical cost	92	92
Accumulated amortization	$ 34	$ 31

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Retirement Benefits Plans - Fair Value of Other Postretirement Benefits Plan Assets (Details) - Other postretirement benefits plans [Member] - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018
Fair Value of Other Postretirement Benefits Plan Assets [Line Items]
Cash equivalents	$ 5	$ 6
Common Collective Trusts, Fixed Income	18	31
Total other postretirement benefits plan assets	23	37
Quoted prices in active markets for identical assets (Level 1) [Member]
Fair Value of Other Postretirement Benefits Plan Assets [Line Items]
Cash equivalents	5	6
Total other postretirement benefits plan assets	5	6
Other observable inputs (Level 2) [Member]
Fair Value of Other Postretirement Benefits Plan Assets [Line Items]
Cash equivalents	0	0
Total other postretirement benefits plan assets	0	0
Unobservable inputs (Level 3) [Member]
Fair Value of Other Postretirement Benefits Plan Assets [Line Items]
Cash equivalents	0	0
Total other postretirement benefits plan assets	$ 0	$ 0

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Income Taxes - Summary of Gross Unrecognized Income Tax Benefits (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Income Tax Disclosure [Abstract]
Balance at January 1	$ 913	$ 735	$ 629
Increases and decreases as a result of positions taken during prior years
Transfers from valuation allowances	15	2	0
Other increases, including currency translation	22	164	10
Other decreases, including currency translation	(10)	(35)	(30)
Increases as a result of positions taken during the current year	80	69	162
Decreases relating to settlements with tax authorities	(16)	(3)	(10)
Decreases as a result of a lapse of the applicable statute of limitations	(3)	(19)	(26)
Balance at December 31	$ 1,001	$ 913	$ 735

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Retirement Benefits Plans - Benefits Expense (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Pension plan [Member]
Defined Benefit Plans and Other Postretirement Benefit Plans
Total expense	$ 165
Pension plan [Member] | Non-United States pension liabilities [Member]
Defined Benefit Plans and Other Postretirement Benefit Plans
Service cost	58	$ 63	$ 71
Interest cost	57	52	55
Expected return on plan assets	(106)	(105)	(94)
Amortization	38	39	51
Benefit plans	47	49	83
Settlements, curtailments and special termination benefits	14	2	5
Total expense	61	51	88
Pension plan [Member] | UNITED STATES
Defined Benefit Plans and Other Postretirement Benefit Plans
Service cost	91	100	96
Interest cost	138	122	123
Expected return on plan assets	(235)	(253)	(244)
Amortization	62	94	83
Benefit plans	56	63	58
Settlements, curtailments and special termination benefits	48	46	62
Total expense	104	109	120
Other postretirement benefits plans [Member]
Defined Benefit Plans and Other Postretirement Benefit Plans
Service cost	2	2	3
Interest cost	14	13	14
Expected return on plan assets	(2)	(3)	(4)
Amortization	(14)	(13)	(13)
Benefit plans	0	(1)	0
Settlements, curtailments and special termination benefits	0	0	0
Total expense	0	$ (1)	$ 0
Automotive Fluid Conveyance Business | Pension plan [Member]
Defined Benefit Plans and Other Postretirement Benefit Plans
Total expense	$ 8

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Commitments and Contingencies (Details) $ in Millions				12 Months Ended
	Nov. 28, 2018 USD ($)	Aug. 23, 2018 USD ($)	Jul. 11, 2018 USD ($)	Dec. 31, 2019 USD ($)	Dec. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)
Loss Contingencies [Line Items]
Number of environmental remediation sites world wide				111
Number of environmental remediation sites world wide with individual significance				0
Accrual for environmental loss contingencies				$ 104	$ 116
Current and long-term warranty accruals [Roll Forward]
Balance at January 1				176	188	$ 180
Provision				204	139	163
Settled				(175)	(145)	(156)
Other				(2)	(6)	1
Warranty accruals reclassified to held for sale				(16)	0	0
Balance at December 31				$ 187	$ 176	$ 188
Pneumo Abex Case [Member]
Loss Contingencies [Line Items]
Loss Contingency, Damages Sought, Value			$ 347
Litigation Settlement, Amount Awarded to Other Party		$ 293
Payments for Legal Settlements	$ 297

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Income Taxes - Worldwide Income Tax Payments (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Income Tax Disclosure [Abstract]
Income taxes paid	$ 425	$ 379	$ 288

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Retirement Benefits Plans - Employer Contributions to Retirement Benefits Plans (Details) - Pension plan [Member] - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2020
Defined Benefit Plans and Other Postretirement Benefit Plans
Employer contributions to pension plans	$ 119	$ 126	$ 473
UNITED STATES
Defined Benefit Plans and Other Postretirement Benefit Plans
Employer contributions to pension plans	17	17	374
Non-United States pension liabilities [Member]
Defined Benefit Plans and Other Postretirement Benefit Plans
Employer contributions to pension plans	$ 102	$ 109	$ 99
Forecast [Member]
Defined Benefit Plans and Other Postretirement Benefit Plans
Expected future contributions, defined benefit plans				$ 128
Forecast [Member] | UNITED STATES
Defined Benefit Plans and Other Postretirement Benefit Plans
Expected future contributions, defined benefit plans				24
Forecast [Member] | Non-United States pension liabilities [Member]
Defined Benefit Plans and Other Postretirement Benefit Plans
Expected future contributions, defined benefit plans				$ 104

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Equity-Based Compensation

12 Months Ended

Dec. 31, 2019

Share-based Payment Arrangement [Abstract]

Equity-Based Compensation

EQUITY-BASED COMPENSATION

Eaton recognizes equity-based compensation expense based on the grant date fair value of the award. Awards with service conditions or both service and market conditions are expensed over the period during which an employee is required to provide service in exchange for the award. Awards with both service and performance conditions are expensed over the period an employee is required to provide service based on the number of units for which achievement of the performance objective is probable. The Company estimates forfeitures as part of recording equity-based compensation expense.

Restricted Stock Units and Awards

Restricted stock units (RSUs) and restricted stock awards (RSAs) have been issued to certain employees and directors. The fair value of RSUs awarded in 2017, 2018 and 2019, and RSAs are determined based on the closing market price of the Company’s ordinary shares at the date of grant. The RSUs entitle the holder to receive one ordinary share for each RSU upon vesting, generally over three years. RSAs are issued and outstanding at the time of grant, but remain subject to forfeiture until vested, generally over three or four years. A summary of the RSU and RSA activity for 2019 follows:

(Restricted stock units and awards in millions)	Number of restricted stock units and awards		Weighted-average fair value per unit and award
Non-vested at January 1	2.1		$	68.56
Granted	0.9		80.59
Vested	(1.2	)	65.45
Forfeited	(0.1	)	76.24
Non-vested at December 31	1.7		$	76.79

Information related to RSUs and RSAs follows:

	2019		2018		2017
Pre-tax expense for RSUs and RSAs	$	57	$	59	$	66
After-tax expense for RSUs and RSAs	45		46		43
Fair value of vested RSUs and RSAs	103		71		73

As of December 31, 2019, total compensation expense not yet recognized related to non-vested RSUs and RSAs was $75, and the weighted-average period in which the expense is expected to be recognized is 2.3 years. Excess tax benefit for RSUs and RSAs totaled $3, $3 and $2 for 2019, 2018, and 2017, respectively.

Performance Share Units

In February 2019, 2018 and 2017, the Compensation and Organization Committee of the Board of Directors approved the grant of performance share units (PSUs) to certain employees that vest based on the satisfaction of a three-year service period and total shareholder return relative to that of a group of peers. Awards earned at the end of the three-year vesting period range from 0% to 200% of the targeted number of PSUs granted based on the ranking of total shareholder return of the Company, assuming reinvestment of all dividends, relative to a defined peer group of companies. Equity-based compensation expense for these PSUs is recognized over the period during which an employee is required to provide service in exchange for the award. Upon vesting, dividends that have accumulated during the vesting period are paid on earned awards.

The Company uses a Monte Carlo simulation to estimate the fair value of PSUs with market conditions. The principal assumptions utilized in valuing these PSUs include the expected stock price volatility (based on the most recent 3-year period as of the grant date) and the risk-free interest rate (an estimate based on the yield of United States Treasury zero coupon bonds with a 3-year maturity as of the grant date). A summary of the assumptions used in determining fair value of these PSUs follows:

	2019			2018			2017
Expected volatility	21		%	22		%	24		%
Risk-free interest rate	2.42		%	2.38		%	1.46		%
Weighted-average fair value of PSUs granted	$	92.50		$	100.86		$	80.07

A summary of these PSUs that vested follows:

(Performance share units in millions)	2019		2018
Percent payout	130	%	116	%
Shares vested	0.3		0.5

A summary of the 2019 activity for these PSUs follows:

(Performance share units in millions)	Number of performance share units		Weighted-average fair value per unit
Non-vested at January 1	0.6		$	89.95
Granted1	0.3		92.50
Adjusted for performance results achieved2	0.1		80.07
Vested	(0.3	)	80.07
Forfeited	(0.1	)	90.91
Non-vested at December 31	0.6		$	96.14

¹ Performance shares granted assuming the Company will perform at target relative to peers.

² Adjustments for the number of shares vested under the 2017 awards at the end of the three-year performance period ended December 31, 2019, being higher than the target number of shares.

In February 2016, performance share units were granted to certain employees that entitles the holder to receive one ordinary share for each PSU that vest based on the satisfaction of a three-year service period and the achievement of certain performance metrics over that same period. Upon vesting, PSU holders receive dividends that accumulate during the vesting period. The fair value of these PSUs is determined based on the closing market price of the Company's ordinary shares at the date of grant. Equity-based compensation expense is recognized over the period an employee is required to provide service based on the number of PSUs for which achievement of the performance objectives is probable. A summary of the 2019 activity for these PSUs follows:

(Performance share units in millions)	Number of performance share units		Weighted-average fair value per unit
Non-vested at January 1	0.1		$	56.55
Granted	—		—
Vested	(0.1	)	56.55
Forfeited	—		—
Non-vested at December 31	—		$	—

Information related to PSUs follows:

	2019		2018		2017
Pre-tax expense for PSUs	$	21	$	28	$	22
After-tax expense for PSUs	17		22		13

As of December 31, 2019, total compensation expense not yet recognized related to non-vested PSUs was $30 and the weighted-average period in which the expense is to be recognized is 1.7 years. Excess tax benefit for PSUs totaled $1 in 2019, and there was no excess tax benefit for PSUs in 2018 and 2017.

Stock Options

Under various plans, stock options have been granted to certain employees and directors to purchase ordinary shares at prices equal to fair market value on the date of grant. Substantially all of these options vest ratably during the three-year period following the date of grant and expire 10 years from the date of grant. Compensation expense is recognized for stock options based on the fair value of the options at the date of grant and amortized on a straight-line basis over the period the employee or director is required to provide service.

The Company uses a Black-Scholes option pricing model to estimate the fair value of stock options. The principal assumptions utilized in valuing stock options include the expected stock price volatility (based on the most recent historical period equal to the expected life of the option); the expected option life (an estimate based on historical experience); the expected dividend yield; and the risk-free interest rate (an estimate based on the yield of United States Treasury zero coupon with a maturity equal to the expected life of the option). A summary of the assumptions used in determining the fair value of stock options follows:

	2019			2018			2017
Expected volatility	23		%	26		%	27		%
Expected option life in years	6.6			6.7			6.6
Expected dividend yield	3.2		%	3.0		%	2.8		%
Risk-free interest rate	1.9 to 2.6%			2.6 to 2.9%			1.8 to 2.1%
Weighted-average fair value of stock options granted	$	14.08		$	16.93		$	15.11

A summary of stock option activity follows:

(Options in millions)	Weighted-average exercise price per option		Options		Weighted-average remaining contractual life in years	Aggregate intrinsic value
Outstanding at January 1, 2019	$	65.96	4.6
Granted	80.47		0.8
Exercised	60.47		(1.2	)
Forfeited and canceled	74.08		(0.1	)
Outstanding at December 31, 2019	$	69.95	4.1		6.2	$	102.5
Exercisable at December 31, 2019	$	65.59	2.8		5.2	$	82.6
Reserved for future grants at December 31, 2019			9.3

The aggregate intrinsic value in the table above represents the total excess of the $94.72 closing price of Eaton ordinary shares on the last trading day of 2019 over the exercise price of the stock option, multiplied by the related number of options outstanding and exercisable. The aggregate intrinsic value is not recognized for financial accounting purposes and the value changes based on the daily changes in the fair market value of the Company's ordinary shares.

Information related to stock options follows:

	2019		2018		2017
Pre-tax expense for stock options	$	9	$	11	$	11
After-tax expense for stock options	7		9		8
Proceeds from stock options exercised	67		29		66
Income tax benefit related to stock options exercised
Tax benefit classified in operating activities in the Consolidated    Statements of Cash Flows	4		3		13
Intrinsic value of stock options exercised	29		17		41
Total fair value of stock options vested	$	9	$	11	$	11
Stock options exercised, in millions of options	1.2		0.6		1.5

As of December 31, 2019, total compensation expense not yet recognized related to non-vested stock options was $10, and the weighted-average period in which the expense is expected to be recognized is 1.8 years

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Condensed Consolidating Financial Statements (Narrative) (Details)	Dec. 31, 2019
Condensed Financial Information Disclosure [Abstract]
Eaton and certain other of Eaton's principal 100% owned subsidiaries full and unconditional guarantee of the Senior Notes, on a joint and several basis	100.00%

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Retirement Benefits Plans

12 Months Ended

Dec. 31, 2019

Retirement Benefits [Abstract]

Retirement Benefit Plans

RETIREMENT BENEFITS PLANS

Eaton has defined benefits pension plans and other postretirement benefits plans.

Obligations and Funded Status

	United States pension liabilities						Non-United States pension liabilities						Other postretirement liabilities
	2019			2018			2019			2018			2019			2018
Funded status
Fair value of plan assets	$	3,433		$	3,068		$	1,903		$	1,560		$	23		$	37
Benefit obligations	(4,028		)	(3,633		)	(2,747		)	(2,285		)	(378		)	(378		)
Funded status	$	(595	)	$	(565	)	$	(844	)	$	(725	)	$	(355	)	$	(341	)
Amounts recognized in the Consolidated    Balance Sheets
Non-current assets	$	—		$	—		$	73		$	58		$	—		$	—
Current liabilities	(23		)	(20		)	(27		)	(24		)	(27		)	(20		)
Non-current liabilities	(572		)	(545		)	(890		)	(759		)	(328		)	(321		)
Total	$	(595	)	$	(565	)	$	(844	)	$	(725	)	$	(355	)	$	(341	)
Amounts recognized in Accumulated other    comprehensive loss (pre-tax)
Net actuarial (gain) loss	$	1,096		$	1,153		$	879		$	683		$	(8	)	$	(20	)
Prior service cost (credit)	7			7			25			27			(17		)	(32		)
Total	$	1,103		$	1,160		$	904		$	710		$	(25	)	$	(52	)

Change in Benefit Obligations

	United States pension liabilities						Non-United States pension liabilities						Other postretirement liabilities
	2019			2018			2019			2018			2019			2018
Balance at January 1	$	3,633		$	3,961		$	2,285		$	2,399		$	378		$	448
Service cost	91			100			58			63			2			2
Interest cost	138			122			57			52			14			13
Actuarial (gain) loss	435			(272		)	315			(16		)	14			(39		)
Gross benefits paid	(270		)	(282		)	(102		)	(112		)	(60		)	(67		)
Currency translation	—			—			47			(124		)	2			(4		)
Plan amendments	1			4			—			21			1			—
Acquisitions and divestitures	—			—			(4		)	—			—			—
Benefit obligation reclassified to held for sale	—			—			(4		)	—			—			—
Other	—			—			95			2			27			25
Balance at December 31	$	4,028		$	3,633		$	2,747		$	2,285		$	378		$	378
Accumulated benefit obligation	$	3,883		$	3,506		$	2,592		$	2,175

Change in Plan Assets

	United States pension liabilities						Non-United States pension liabilities						Other postretirement liabilities
	2019			2018			2019			2018			2019			2018
Balance at January 1	$	3,068		$	3,585		$	1,560		$	1,727		$	37		$	55
Actual return on plan assets	618			(252		)	230			(72		)	5			—
Employer contributions	17			17			102			109			15			25
Gross benefits paid	(270		)	(282		)	(102		)	(112		)	(60		)	(67		)
Currency translation	—			—			58			(93		)	—			—
Other	—			—			55			1			26			24
Balance at December 31	$	3,433		$	3,068		$	1,903		$	1,560		$	23		$	37

The components of pension plans with an accumulated benefit obligation in excess of plan assets at December 31 follow:

	United States pension liabilities				Non-United States pension liabilities
	2019		2018		2019		2018
Projected benefit obligation	$	4,028	$	3,633	$	1,107	$	905
Accumulated benefit obligation	3,883		3,506		1,028		853
Fair value of plan assets	3,433		3,068		242		158

Changes in pension and other postretirement benefit liabilities recognized in Accumulated other comprehensive loss follow:

	United States pension liabilities						Non-United States pension liabilities						Other postretirement liabilities
	2019			2018			2019			2018			2019			2018
Balance at January 1	$	1,160		$	1,063		$	710		$	604		$	(52	)	$	(27	)
Prior service cost arising during the year	1			4			—			21			1			—
Net loss (gain) arising during the year	52			233			231			161			11			(36		)
Currency translation	—			—			15			(35		)	1			(2		)
Less amounts included in expense during the year	(110		)	(140		)	(52		)	(41		)	14			13
Net change for the year	(57		)	97			194			106			27			(25		)
Balance at December 31	$	1,103		$	1,160		$	904		$	710		$	(25	)	$	(52	)

Benefits Expense

	United States pension benefit expense									Non-United States pension benefit expense									Other postretirement benefits expense
	2019			2018			2017			2019			2018			2017			2019			2018			2017
Service cost	$	91		$	100		$	96		$	58		$	63		$	71		$	2		$	2		$	3
Interest cost	138			122			123			57			52			55			14			13			14
Expected return on plan assets	(235		)	(253		)	(244		)	(106		)	(105		)	(94		)	(2		)	(3		)	(4		)
Amortization	62			94			83			38			39			51			(14		)	(13		)	(13		)
	56			63			58			47			49			83			—			(1		)	—
Settlements, curtailments and special termination benefits	48			46			62			14			2			5			—			—			—
Total expense	$	104		$	109		$	120		$	61		$	51		$	88		$	—		$	(1	)	$	—

Total pension benefits expense of $165 includes $8 of settlement expense related to the sale of the Automotive Fluid Conveyance Business discussed in Note 2. The components of retirement benefits expense other than service costs are included in Other expense (income) - net.

The estimated pre-tax net amounts that will be recognized from Accumulated other comprehensive loss into net periodic benefit cost in 2020 follow:

	United States pension liabilities		Non-United States pension liabilities		Other postretirement liabilities
Actuarial loss	$	144	$	59	$	1
Prior service cost (credit)	1		3		(14		)
Total	$	145	$	62	$	(13	)

Retirement Benefits Plans Assumptions

For purposes of determining liabilities related to pension plans and other postretirement benefits plans in the United States, in 2017 the Company used 2014 mortality tables and a generational improvement scale that is based on MP-2017. In 2018 and 2019, for the majority of its plans in the United States, the Company used mortality tables that are based on the Company's own experience and generational improvement scales that are based on MP-2018 and MP-2019, respectively.

To estimate the service and interest cost components of net periodic benefit cost for the vast majority of its defined benefits pension and other postretirement benefits plans, the Company used a spot rate approach by applying the specific spot rates along the yield curve used to measure the benefit obligation at the beginning of the period to the relevant projected cash flows.

Pension Plans

	United States pension plans						Non-United States pension plans
	2019		2018		2017		2019		2018		2017
Assumptions used to determine benefit obligation at year-end
Discount rate	3.22	%	4.28	%	3.64	%	2.02	%	2.83	%	2.62	%
Rate of compensation increase	3.14	%	3.14	%	3.15	%	3.05	%	3.10	%	3.11	%
Assumptions used to determine expense
Discount rate used to determine benefit obligation	4.28	%	3.64	%	4.12	%	2.83	%	2.62	%	2.63	%
Discount rate used to determine service cost	4.39	%	3.78	%	4.31	%	4.02	%	3.54	%	3.38	%
Discount rate used to determine interest cost	3.94	%	3.19	%	3.40	%	2.56	%	2.31	%	2.34	%
Expected long-term return on plan assets	7.25	%	7.52	%	7.90	%	6.42	%	6.40	%	6.30	%
Rate of compensation increase	3.14	%	3.15	%	3.15	%	3.10	%	3.11	%	3.13	%

The expected long-term rate of return on pension assets was determined for each country and reflects long-term historical data taking into account each plan's target asset allocation. The expected long-term rates of return on pension assets for United States pension plans and Non-United States pension plans for 2020 are 7.25% and 5.84%, respectively. The discount rates were determined using appropriate bond data for each country.

Other Postretirement Benefits Plans

Substantially all of the obligation for other postretirement benefits plans relates to United States plans. Assumptions used to determine other postretirement benefits obligations and expense follow:

	Other postretirement benefits plans
	2019		2018		2017
Assumptions used to determine benefit obligation at year-end
Discount rate	3.13	%	4.23	%	3.55	%
Health care cost trend rate assumed for next year	6.95	%	7.10	%	8.25	%
Ultimate health care cost trend rate	4.75	%	4.75	%	4.75	%
Year ultimate health care cost trend rate is achieved	2029		2028		2027
Assumptions used to determine expense
Discount rate used to determine benefit obligation	4.23	%	3.55	%	3.96	%
Discount rate used to determine service cost	4.29	%	3.62	%	4.11	%
Discount rate used to determine interest cost	3.85	%	3.04	%	3.18	%
Initial health care cost trend rate	7.10	%	8.25	%	7.35	%
Ultimate health care cost trend rate	4.75	%	4.75	%	4.75	%
Year ultimate health care cost trend rate is achieved	2028		2027		2026

Assumed health care cost trend rates may have a significant effect on the amounts reported for the health care plans. A 1-percentage point change in the assumed health care cost trend rates would have the following effects:

	1% increase		1% decrease
Effect on total service and interest cost	$	1	$	—
Effect on other postretirement liabilities	10		(8		)

Employer Contributions to Retirement Benefits Plans

Contributions to pension plans that Eaton expects to make in 2020, and made in 2019, 2018 and 2017, follow:

	2020		2019		2018		2017
United States plans	$	24	$	17	$	17	$	374
Non-United States plans	104		102		109		99
Total contributions	$	128	$	119	$	126	$	473

The following table provides the estimated pension and other postretirement benefit payments for each of the next five years, and the five years thereafter in the aggregate. For other postretirement benefits liabilities, the expected subsidy receipts related to the Medicare Prescription Drug, Improvement, and Modernization Act of 2003 would reduce the gross payments listed below.

	Estimated United States pension payments		Estimated non-United States pension payments		Estimated other postretirement benefit payments
					Gross		Medicare prescription drug subsidy
2020	$	316	$	96	$	36	$	(1	)
2021	313		96		31		(1		)
2022	307		100		31		—
2023	306		103		28		—
2024	299		106		26		—
2025 - 2029	1,436		594		112		(1		)

Pension Plan Assets

Investment policies and strategies are developed on a country specific basis. The United States plans, representing 64% of worldwide pension assets, and the United Kingdom plans representing 28% of worldwide pension assets, are invested primarily for growth, as the majority of the assets are in plans with active participants and ongoing accruals. In general, the plans have their primary allocation to diversified global equities, primarily through index funds in the form of common collective and other trusts. The United States plans' target allocation is 25% United States equities, 25% non-United States equities, 8% real estate (primarily equity of real estate investment trusts), 37% debt securities and 5% other, including private equity and cash equivalents. The United Kingdom plans' target asset allocations are 60% equities and the remainder in debt securities, cash equivalents and real estate investments. The equity risk for the plans is managed through broad geographic diversification and diversification across industries and levels of market capitalization. The majority of debt allocations for these plans are longer duration government and corporate debt. The United States, United Kingdom and Canada pension plans are authorized to use derivatives to achieve more economically desired market exposures and to use futures, swaps and options to gain or hedge exposures.

Fair Value Measurements

Financial instruments included in pension and other postretirement benefits plan assets are categorized into a fair value hierarchy of three levels, based on the degree of subjectivity inherent in the valuation methodology as follows:

Level 1 - Quoted prices (unadjusted) for identical assets in active markets.

Level 2 - Quoted prices for similar assets in active markets, and inputs that are observable for the asset, either directly or indirectly, for substantially the full term of the financial instrument.

Level 3 - Unobservable prices or inputs.

Certain investments that are measured at fair value using the net asset value per share practical expedient have not been categorized in the fair value hierarchy and are being presented in the tables to permit a reconciliation to total plan assets.

Pension Plans

A summary of the fair value of pension plan assets at December 31, 2019 and 2018, follows:

	Total			Quoted prices in active markets for identical assets (Level 1)		Other observable inputs (Level 2)		Unobservable inputs (Level 3)1
2019
Common collective trusts
Non-United States equity and global equities	$	606		$	—	$	606	$	—
United States equity	74			—		74		—
Fixed income	571			—		571		—
Fixed income securities	885			—		885		—
United States treasuries	330			330		—		—
Bank loans	104			—		104		—
Real estate	299			225		13		61
Cash equivalents	196			67		129		—
Exchange traded funds	79			79		—		—
Other	167			—		38		129
Common collective and other trusts measured at net asset value	2,108
Money market funds measured at net asset value	6
Pending purchases and sales of plan assets, and interest     receivable	(89		)
Total pension plan assets	$	5,336		$	701	$	2,420	$	190

¹ These pension plan assets include private real estate, private credit and private equity funds that generally have redemption notice periods of six months or longer, and are not eligible for redemption until the underlying assets are liquidated or distributed. The Company has unfunded commitments to these funds of approximately $334 at December 31, 2019, which will be satisfied by a reallocation of pension plan assets.

	Total			Quoted prices in active markets for identical assets (Level 1)		Other observable inputs (Level 2)		Unobservable inputs (Level 3)1
2018
Common collective trusts
Non-United States equity and global equities	$	612		$	—	$	612	$	—
United States equity	50			—		50		—
Fixed income	483			—		483		—
Fixed income securities	721			—		721		—
United States treasuries	262			262		—		—
Bank loans	107			—		107		—
Real estate	202			181		—		21
Equity securities	51			51		—		—
Cash equivalents	176			130		46		—
Exchange traded funds	60			60		—		—
Other	90			—		15		75
Common collective and other trusts measured at net asset value	1,833
Money market funds measured at net asset value	5
Pending purchases and sales of plan assets, and interest     receivable	(24		)
Total pension plan assets	$	4,628		$	684	$	2,034	$	96

¹ These pension plan assets include private real estate and private equity funds that generally have redemption notice periods of six months or longer, and are not eligible for redemption until the underlying assets are liquidated or distributed. The Company has unfunded commitments to these funds of approximately $180 at December 31, 2018, which will be satisfied by a reallocation of pension plan assets.

The fair value measurement of plan assets using significant unobservable inputs (Level 3) changed during 2018 and 2019 due to the following:

	Real estate			Other		Total
Balance at January 1, 2018	$	19		$	73	$	92
Actual return on plan assets:
Gains (losses) relating to assets still held at year-end	(1		)	—		(1		)
Purchases, sales, settlements - net	3			2		5
Transfers into or out of Level 3	—			—		—
Balance at December 31, 2018	21			75		96
Actual return on plan assets:
Gains (losses) relating to assets still held at year-end	4			12		16
Purchases, sales, settlements - net	36			42		78
Transfers into or out of Level 3	—			—		—
Balance at December 31, 2019	$	61		$	129	$	190

Other Postretirement Benefits Plans

A summary of the fair value of other postretirement benefits plan assets at December 31, 2019 and 2018, follows:

	Total		Quoted prices in active markets for identical assets (Level 1)		Other observable inputs (Level 2)		Unobservable inputs (Level 3)
2019
Cash equivalents	$	5	$	5	$	—	$	—
Common collective and other trusts measured at net asset value	18
Total other postretirement benefits plan assets	$	23	$	5	$	—	$	—

	Total		Quoted prices in active markets for identical assets (Level 1)		Other observable inputs (Level 2)		Unobservable inputs (Level 3)
2018
Cash equivalents	$	6	$	6	$	—	$	—
Common collective and other trusts measured at net asset value	31
Total other postretirement benefits plan assets	$	37	$	6	$	—	$	—

Valuation Methodologies

Following is a description of the valuation methodologies used for pension and other postretirement benefits plan assets measured at fair value. There have been no changes in the methodologies used at December 31, 2019 and 2018.

Common collective and other trusts - Valued at the net unit value of units held by the trust at year end. The unit value is determined by the total value of fund assets divided by the total number of units of the fund owned. The equity investments in collective trusts are predominantly in index funds for which the underlying securities are actively traded in public markets based upon readily measurable prices. The investments in other trusts are predominantly in exchange traded funds for which the underlying securities are actively traded in public markets based upon readily measurable prices. Common collective and other trusts measured at fair value using the net asset value per share practical expedient have not been categorized in the fair value hierarchy and are being presented in the tables above to permit a reconciliation of the fair value hierarchy to the total plan assets.

Fixed income securities - These securities consist of publicly traded United States and non-United States fixed interest obligations (principally corporate and government bonds and debentures). The fair value of corporate and government debt securities is determined through third-party pricing models that consider various assumptions, including time value, yield curves, credit ratings, and current market prices. The Company verifies the results of trustees or custodians and evaluates the pricing classification of these securities by performing analyses using other third-party sources.

United States treasuries - Valued at the closing price of each security.

Bank loans - These securities consist of senior secured term loans of publicly traded and privately held United States and non-United States floating rate obligations (principally corporations of non-investment grade rating). The fair value is determined through third-party pricing models that primarily utilize dealer quoted current market prices. The Company verifies the results of trustees or custodians and evaluates the pricing classification of these securities by performing analyses using other third-party sources.

Equity securities - These securities consist of direct investments in the stock of publicly traded companies. Such investments are valued based on the closing price reported in an active market on which the individual securities are traded. As such, the direct investments are classified as Level 1.

Real estate - Consists of direct investments in the stock of publicly traded companies and investments in pooled funds that invest directly in real estate. The publicly traded companies are valued based on the closing price reported in an active market on which the individual securities are traded and as such are classified as Level 1. The pooled funds rely on appraisal based valuations and as such are classified as Level 3.

Cash equivalents - Primarily certificates of deposit, commercial paper, and repurchase agreements.

Exchange traded funds - Valued at the closing price of the exchange traded fund's shares.

Money market funds - Money market funds measured at fair value using the net asset value per share practical expedient have not been categorized in the fair value hierarchy and are being presented in the tables above to permit a reconciliation of the fair value hierarchy to the total plan assets.

Other - Primarily insurance contracts for international plans and also futures contracts and over-the-counter options. These investments are valued based on the closing prices of future contracts or indices as available on Bloomberg or similar service, private credit and private equity investments.

For additional information regarding fair value measurements, see Note 12.

Defined Contribution Plans

The Company has various defined contribution benefit plans, primarily consisting of the plans in the United States. The total contributions related to these plans are charged to expense and were as follows:

2019	$	130
2018	124
2017	114

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Revenue Recognition (Notes)

12 Months Ended

Dec. 31, 2019

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 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.

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.

	2019
Net sales	United States		Rest of World		Total
Electrical Products	$	4,269	$	2,879	$	7,148
Electrical Systems and Services	4,148		2,139		6,287
Hydraulics	1,112		1,440		2,552
	Original Equipment Manufacturers		Aftermarket, Distribution and End User
Aerospace	$	1,167	$	877	2,044
	Commercial		Passenger and Light Duty
Vehicle	$	1,538	$	1,500	3,038
eMobility					321
Total					$	21,390

	2018
Net sales	United States		Rest of World		Total
Electrical Products	$	4,112	$	3,012	$	7,124
Electrical Systems and Services	3,936		2,088		6,024
Hydraulics	1,190		1,566		2,756
	Original Equipment Manufacturers		Aftermarket, Distribution and End User
Aerospace	$	1,085	$	811	1,896
	Commercial		Passenger and Light Duty
Vehicle	$	1,759	$	1,730	3,489
eMobility					320
Total					$	21,609

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 $3,090 and $3,402 at December 31, 2019 and December 31, 2018, 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 Consolidated Balance Sheets on a contract-by-contract basis at the end of each reporting period. Unbilled receivables were $101 and $94 at December 31, 2019 and December 31, 2018, respectively, and are recorded in Prepaid expenses and other current assets. The increase in unbilled receivables was primarily due to revenue recognized and not yet billed, partially offset by billings to customers during 2019.

Changes in the deferred revenue liabilities are as follows:

	Deferred Revenue
Balance at January 1, 2018	$	227
Customer deposits and billings	967
Revenue recognized in the period	(939		)
Translation	(7		)
Balance at December 31, 2018	$	248
Customer deposits and billings	982
Revenue recognized in the period	(993		)
Translation	3
Deferred revenue reclassified to held for sale	(6		)
Balance at December 31, 2019	$	234

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 December 31, 2019 was approximately $5.4 billion. At December 31, 2019, Eaton expects to recognize approximately 87% of this backlog in the next twelve months and the rest thereafter.

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Fair Value Measurements Fair Value Measurements (Details Textuals) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018	Jul. 31, 2017
Fair Value Disclosures [Abstract]
Long-term debt and current portion of long term debt, carrying value	$ 8,067	$ 7,107
Long-term debt and current portion of long-term debt, fair value	$ 8,638	$ 7,061
Interest in business sold			50.00%
Equity method of accounting, ownership interest (in percentage)			50.00%
Investments, fair value			$ 600

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Equity-Based Compensation Stock Options Activity (Details) $ / shares in Units, shares in Millions, $ in Millions	12 Months Ended
	Dec. 31, 2019 USD ($) $ / shares shares
Options
Closing price of Eaton ordinary shares on last trading day | $ / shares	$ 94.72
Weighted-average exercise price per option [Member]
Weighted-average exercise price per option
Beginning balance (usd per share) | $ / shares	65.96
Granted (usd per share) | $ / shares	80.47
Exercised (usd per share) | $ / shares	60.47
Forfeited and cancelled (usd per share) | $ / shares	74.08
Ending balance (usd per share) | $ / shares	69.95
Exercisable at December 31, 2019 | $ / shares	$ 65.59
Stock Options [Member]
Options
Outstanding at January 1, 2019, shares | shares	4.6
Granted, shares | shares	0.8
Exercised, shares | shares	(1.2)
Forfeited and cancelled, shares | shares	(0.1)
Outstanding at December 31, 2019, shares | shares	4.1
Exercisable at December 31, 2019, shares | shares	2.8
Reserved for future grants at December 31, 2019, shares | shares	9.3
Weighted-average remaining contractual life in years [Member]
Options
Outstanding at December 31, 2019	6 years 2 months 12 days
Exercisable at December 31, 2019	5 years 2 months 12 days
Aggregate Intrinsic Value [Member]
Options
Outstanding at December 31, 2019 | $	$ 102.5
Exercisable at December 31, 2019 | $	$ 82.6

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Eaton Shareholders' Equity (Tables)

12 Months Ended

Dec. 31, 2019

Equity [Abstract]

Comprehensive Income (Loss)

The following table summarizes the pre-tax and after-tax amounts recognized in Comprehensive income (loss):

	2019						2018						2017
	Pre-tax			After-tax			Pre-tax			After-tax			Pre-tax			After-tax
Currency translation and related hedging instruments	$	15		$	16		$	(613	)	$	(609	)	$	800		$	807
Pensions and other postretirement benefits
Prior service credit (cost) arising during the year	(2		)	(2		)	(25		)	(20		)	(1		)	—
Net gain (loss) arising during the year	(294		)	(232		)	(358		)	(274		)	215			169
Currency translation	(16		)	(13		)	37			29			(67		)	(53		)
Other	—			—			—			5			—			(5		)
Amortization of actuarial loss and prior service cost    reclassified to earnings	148			117			168			121			188			130
	(164		)	(130		)	(178		)	(139		)	335			241
Cash flow hedges
Gain (loss) on derivatives designated as cash flow hedges	(33		)	(27		)	(8		)	(6		)	(24		)	(15		)
Changes in cash flow hedges reclassified to earnings	(5		)	(4		)	16			13			17			11
Cash flow hedges, net of reclassification adjustments	(38		)	(31		)	8			7			(7		)	(4		)
Other comprehensive income (loss) attributable to Eaton ordinary shareholders	$	(187	)	$	(145	)	$	(783	)	$	(741	)	$	1,128		$	1,044

Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block]

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 January 1, 2019	$	(2,864	)	$	(1,278	)	$	(3	)	$	(4,145	)
Other comprehensive income (loss) before     reclassifications	16			(247		)	(27		)	(258		)
Amounts reclassified from Accumulated other    comprehensive loss (income)	—			117			(4		)	113
Net current-period Other comprehensive    income (loss)	16			(130		)	(31		)	(145		)
Balance at December 31, 2019	$	(2,848	)	$	(1,408	)	$	(34	)	$	(4,290	)

Reclassification out of Accumulated Other Comprehensive Income [Table Text Block]

The reclassifications out of Accumulated other comprehensive loss follow:

	December 31, 2019			Consolidated Statements of Income classification
Amortization of defined benefits pension and other    postretirement benefits items
Actuarial loss and prior service cost	$	(148	)	1
Tax benefit	31
Total, net of tax	(117		)
Gains and (losses) on cash flow hedges
Currency exchange contracts	5			Net sales and Cost of products sold
Tax expense	(1		)
Total, net of tax	4
Total reclassifications for the period	$	(113	)

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

Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]

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

(Shares in millions)	2019		2018		2017
Net income attributable to Eaton ordinary shareholders	$	2,211	$	2,145	$	2,985
Weighted-average number of ordinary shares outstanding - diluted	420.8		436.9		447
Less dilutive effect of equity-based compensation	1.8		2.6		2.5
Weighted-average number of ordinary shares outstanding - basic	419.0		434.3		444.5
Net income per share attributable to Eaton ordinary shareholders
Diluted	$	5.25	$	4.91	$	6.68
Basic	5.28		4.93		6.71

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Accounts Receivable and Inventory (Tables)

12 Months Ended

Dec. 31, 2019

Accounts Receivable and Inventory [Abstract]

Components of inventory

The components of inventory follow:

	2019		2018
Raw materials	$	986	$	1,077
Work-in-process	640		500
Finished goods	1,179		1,208
Total inventory	$	2,805	$	2,785

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LEASES - Narrative (Details) $ in Millions	12 Months Ended
	Dec. 31, 2019 USD ($)
Leases [Abstract]
Net gain on sale leaseback transactions	$ 16

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Goodwill and Other Intangible Assets - Schedule of Goodwill by Segment (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Goodwill [Roll Forward]
Beginning Balance	$ 13,328	$ 13,568
Additions	605
Goodwill reclassified to held for sale	(470)
Translation	(7)	(240)
Ending Balance	13,456	13,328
Electrical Products [Member]
Goodwill [Roll Forward]
Beginning Balance	6,562	6,678
Additions	0
Goodwill reclassified to held for sale	(470)
Translation	(2)	(116)
Ending Balance	6,090	6,562
Electrical Systems and Services [Member]
Goodwill [Roll Forward]
Beginning Balance	4,241	4,311
Additions	163
Goodwill reclassified to held for sale	0
Translation	6	(70)
Ending Balance	4,410	4,241
Hydraulics [Member]
Goodwill [Roll Forward]
Beginning Balance	1,212	1,257
Additions	0
Goodwill reclassified to held for sale	0
Translation	(13)	(45)
Ending Balance	1,199	1,212
Aerospace [Member]
Goodwill [Roll Forward]
Beginning Balance	941	947
Additions	442
Goodwill reclassified to held for sale	0
Translation	3	(6)
Ending Balance	1,386	941
Vehicle [Member]
Goodwill [Roll Forward]
Beginning Balance	292	294
Additions	0
Goodwill reclassified to held for sale	0
Translation	(1)	(2)
Ending Balance	291	292
eMobility [Member]
Goodwill [Roll Forward]
Beginning Balance	80	81
Additions	0
Goodwill reclassified to held for sale	0
Translation	0	(1)
Ending Balance	$ 80	$ 80

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Retirement Benefits Plans - Estimated Future Pretax Amounts Recognized From AOCI to Net Periodic Benefit Cost (Details) $ in Millions	12 Months Ended
	Dec. 31, 2019 USD ($)
Pension plan [Member] | UNITED STATES
Defined Benefit Plans and Other Postretirement Benefit Plans
Actuarial loss	$ 144
Prior service cost (credit)	1
Total	145
Pension plan [Member] | Non-United States pension liabilities [Member]
Defined Benefit Plans and Other Postretirement Benefit Plans
Actuarial loss	59
Prior service cost (credit)	3
Total	62
Other postretirement liabilities [Member]
Defined Benefit Plans and Other Postretirement Benefit Plans
Actuarial loss	1
Prior service cost (credit)	(14)
Total	$ (13)

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Income Taxes - Income (Loss) Before Income Taxes (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Income (Loss) Before Income Taxes [Line Items]
Total income before income taxes	$ 2,591	$ 2,424	$ 3,368
Ireland [Member]
Income (Loss) Before Income Taxes [Line Items]
Total income before income taxes	(201)	(365)	(1,090)
Foreign [Member]
Income (Loss) Before Income Taxes [Line Items]
Total income before income taxes	$ 2,792	$ 2,789	$ 4,458

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Income Taxes - Components of Current and Long-Term Deferred Income Taxes (Details) - Long-term assets and liabilities [Member] - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018
Deferred Tax Assets, Tax Deferred Expense, Reserves and Accruals [Abstract]
Employee benefits	$ 514	$ 481
Depreciation and amortization	(1,245)	(1,198)
Other accruals and adjustments	498	434
Deferred Tax Assets, Net, Classification [Abstract]
Ireland income tax loss carryforwards	1	1
Foreign income tax loss carryforwards	1,826	1,915
Foreign income tax credit carryforwards	349	396
Valuation allowance for income tax loss and income tax credit carryforwards	(1,914)	(2,032)
Other valuation allowances	(52)	(53)
Total deferred income taxes	(23)	(56)
Deferred income taxes reported as assets held for sale	1	0
Deferred income taxes	$ (24)	$ (56)

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- Estimated Pension and Other Postretirement Benefit Payments (Details) $ in Millions	Dec. 31, 2019 USD ($)
Pension plan [Member] | UNITED STATES
Defined Benefit Plans and Other Postretirement Benefit Plans
2020	$ 316
2021	313
2022	307
2023	306
2024	299
2025 - 2029	1,436
Pension plan [Member] | Non-United States pension liabilities [Member]
Defined Benefit Plans and Other Postretirement Benefit Plans
2020	96
2021	96
2022	100
2023	103
2024	106
2025 - 2029	594
Other postretirement benefits plans [Member]
Defined Benefit Plans and Other Postretirement Benefit Plans
2020	36
Medicare prescription drug subsidy 2020	(1)
2021	31
Medicare prescription drug subsidy 2021	(1)
2022	31
Medicare prescription drug subsidy 2022	0
2023	28
Medicare prescription drug subsidy 2023	0
2024	26
Medicare prescription drug subsidy 2024	0
2025 - 2029	112
Medicare prescription drug subsidy 2025 - 2029	$ (1)

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Retirement Benefits Plans - Defined Contribution Plans (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Retirement Benefits [Abstract]
Employer contributions to defined contribution plans	$ 130	$ 124	$ 114

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Income Taxes - Narrative (Details) - USD ($) $ in Millions	1 Months Ended	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Income Taxes [Abstract]
Income tax expense		$ 378	$ 278	$ 382
Effective income tax (benefit) expense rate		14.60%	11.50%	11.30%
Tax benefit related to the arbitration decision expense			$ (69)
Income tax expense related to the gain on sale of a business				$ 234
Income tax benefit related to U.S. Tax Cuts and Jobs Acts (TCJA)	$ (62)		$ (45)
Income tax rate excluding gain and related tax impact on the sale of business, arbitration decision, and U.S. Tax Cuts and Jobs Act (TCJA)			12.80%	9.20%
Deferred other tax expense (benefit)	(79)		$ 17
Provisional tax expense for one time transition tax	$ 17
Undistributed earnings of United States and other foreign subsidiaries where no provision has been made		$ 28,500
Unrecognized tax benefits that would impact effective tax rate		660
Income tax examination, penalties and interest accrued		93	74
2011 Notice [Member]
Income Taxes [Abstract]
IRS Statutory Notice of Deficiency proposed assessment of additional taxes		75
Penalties associated with IRS Statutory Notice of Deficiency proposed assessment		52
2014 Notice [Member]
Income Taxes [Abstract]
IRS Statutory Notice of Deficiency proposed assessment of additional taxes		190
Penalties associated with IRS Statutory Notice of Deficiency proposed assessment		72
Secretariat of the Federal Revenue Bureau of Brazil [Member] | Foreign Tax Authority [Member]
Income Taxes [Abstract]
Income tax examination, penalties and interest accrued		117	84
Alleged tax deficiency		$ 33	$ 31
Number of years estimated to resolve		10 years

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Summary of Significant Accounting Policies - Summary of Significant Accounting Policies - Narrative (Details)	12 Months Ended
	Dec. 31, 2019
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Defined Benefit Plan, Lower Corridor	8.00%
Defined Benefit Plan, Upper Corridor	10.00%
Defined Benefit Plan, Weighted Average Amortization Period of Gain (Loss)	10 years

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Acquisition and Divestitures of Businesses - Sale of Hydraulics business (Details) - Hydraulics Business - USD ($) $ in Billions	12 Months Ended
	Dec. 31, 2019	Jan. 21, 2020
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Sales	$ 2.2
Subsequent Event
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Cash purchase price		$ 3.3
Hydraulics [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Revenue, percent of segment total	86.00%

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Equity-Based Compensation Performance Share Units (Market Based Assumptions) (Details) - $ / shares	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Share-based Payment Arrangement [Abstract]
Expected volatility	21.00%	22.00%	24.00%
Risk-free interest rate	2.42%	2.38%	1.46%
Weighted-average fair value of PSUs granted	$ 92.50	$ 100.86	$ 80.07

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Retirement Benefits Plans - Components of Pension Plans with Accumulated Benefit Obligation in Excess of Plan Assets (Details) - Pension plan [Member] - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018
UNITED STATES
Components of pension plans with an accumulated benefit obligation in excess of plan assets
Projected benefit obligation	$ 4,028	$ 3,633
Accumulated benefit obligation	3,883	3,506
Fair value of plan assets	3,433	3,068
Non-United States pension liabilities [Member]
Components of pension plans with an accumulated benefit obligation in excess of plan assets
Projected benefit obligation	1,107	905
Accumulated benefit obligation	1,028	853
Fair value of plan assets	$ 242	$ 158

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Retirement Benefits Plans - Change in Benefit Obligations (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Pension plan [Member] | UNITED STATES
Change in benefit obligations
Balance at January 1	$ 3,633	$ 3,961
Service cost	91	100	$ 96
Interest cost	138	122	123
Actuarial (gain) loss	435	(272)
Gross benefits paid	(270)	(282)
Currency translation	0	0
Plan amendments	1	4
Acquisitions and divestitures	0	0
Benefit obligation reclassified to held for sale	0	0
Other	0	0
Balance at December 31	4,028	3,633	3,961
Accumulated benefit obligation	3,883	3,506
Pension plan [Member] | Non-United States pension liabilities [Member]
Change in benefit obligations
Balance at January 1	2,285	2,399
Service cost	58	63	71
Interest cost	57	52	55
Actuarial (gain) loss	315	(16)
Gross benefits paid	(102)	(112)
Currency translation	47	(124)
Plan amendments	0	21
Acquisitions and divestitures	(4)	0
Benefit obligation reclassified to held for sale	(4)	0
Other	95	2
Balance at December 31	2,747	2,285	2,399
Accumulated benefit obligation	2,592	2,175
Other postretirement liabilities [Member]
Change in benefit obligations
Balance at January 1	378	448
Service cost	2	2	3
Interest cost	14	13	14
Actuarial (gain) loss	14	(39)
Gross benefits paid	(60)	(67)
Currency translation	2	(4)
Plan amendments	1	0
Acquisitions and divestitures	0	0
Benefit obligation reclassified to held for sale	0	0
Other	27	25
Balance at December 31	$ 378	$ 378	$ 448

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Eaton Shareholders' Equity (Textuals) (Details) $ / shares in Units, $ in Millions		1 Months Ended	12 Months Ended
	Feb. 26, 2020 $ / shares	Dec. 31, 2018 USD ($) shares	Dec. 31, 2019 USD ($) $ / shares shares	Dec. 31, 2018 USD ($) $ / shares shares	Dec. 31, 2017 USD ($) $ / shares shares	Mar. 31, 2020 $ / shares	Dec. 31, 2019 € / shares	Feb. 27, 2019 shares	Feb. 24, 2016 shares
Shareholders Equity Textuals Abstract
Ordinary shares authorized			750,000,000
Eaton Corporation plc ordinary share par value | $ / shares			$ 0.01
Ordinary shares issued and outstanding (shares)		423,600,000	413,300,000	423,600,000
Deferred ordinary shares authorized			40,000
Deferred ordinary shares par value | € / shares							€ 1.00
Deferred ordinary shares, shares issued and outstanding		40,000	40,000	40,000
Preferred A Shares authorized			10,000
Preferred A Shares par value | $ / shares			$ 1.00
Preferred A Shares, Shares Issued		10,000	10,000	10,000
Preferred A Shares, Shares Outstanding		10,000	10,000	10,000
Serial preferred shares authorized			10,000,000
Serial preferred share par value per share | $ / shares			$ 0.01
Number of holders of record of Eaton ordinary shares			12,072
Number of current and former employees who were shareholders through various Eaton plans			17,699
Employee Trust [Abstract]
Deferred compensation plan trust of shares and marketable secutities | $		$ 8	$ 5	$ 8
Quarterly dividends, per share, declared (usd per share) | $ / shares			$ 2.84	$ 2.64	$ 2.40
Antidilutive securities excluded from computation of net income per ordinary share			800,000	500,000	400,000
2016 Program [Member]
Disclosure of Repurchase Agreements [Abstract]
Share repurchase program, authorized (in shares)									2,500,000,000
Ordinary shares purchased (in shares)				13,200,000	11,500,000
Shares repurchased | $				$ 1,002	$ 850
Shares repurchased during December 2018 [Member]
Disclosure of Repurchase Agreements [Abstract]
Ordinary shares purchased (in shares)		4,300,000
Shares repurchased | $		$ 298
2019 Program [Member]
Disclosure of Repurchase Agreements [Abstract]
Share repurchase program, authorized (in shares)								5,000,000,000
Ordinary shares purchased (in shares)			12,500,000
Shares repurchased | $			$ 1,000
Forecast [Member]
Employee Trust [Abstract]
Quarterly dividends, per share, declared (usd per share) | $ / shares	$ 0.73
Dividend increase percentage over dividend paid in prior quarter	3.00%
Serial Preferred [Member]
Shareholders Equity Textuals Abstract
Serial preferred shares, shares issued and outstanding		0	0	0
Subsequent Event | Forecast [Member]
Employee Trust [Abstract]
Dividends Payable, Amount Per Share | $ / shares						$ 0.73

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Eaton Shareholders' Equity - Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Equity [Abstract]
Currency translation and related hedging instuments pre-tax	$ 15	$ (613)	$ 800
Currency translation and related hedging instruments after-tax	16	(609)	807
Pension and Other Postretirement Benefits [Abstract]
Prior service credit (cost) arising during the year pre-tax	(2)	(25)	(1)
Prior service credit (cost) arising during the year after-tax	(2)	(20)	0
Net gain (loss) arising during the year pre-tax	(294)	(358)	215
Net gain (loss) arising during the year after-tax	(232)	(274)	169
Currency translation pre-tax	(16)	37	(67)
Currency translation after-tax	(13)	29	(53)
Other pre-tax	0	0	0
Other after-tax	0	5	(5)
Amortization of actuarial loss and prior service cost reclassified to earnings pre-tax	148	168	188
Amortization of actuarial loss and prior service cost reclassified to earnings after-tax	117	121	130
Total pensions and other postretirement benefits included in other comprehensive income (loss), pre-tax	(164)	(178)	335
Total pensions and other postretirement benefits included in other comprehensive income (loss), after-tax	(130)	(139)	241
Other Accumulated Comprehensive Income (Loss) Cash Flow Hedges
Gain (loss) on derivatives designated as cash flow hedges pre-tax	(33)	(8)	(24)
Gain (loss) on derivatives designated as cash flow hedges after-tax	(27)	(6)	(15)
Changes in cash flow hedges reclassified to earnings pre-tax	(5)	16	17
Changes in cash flow hedges reclassified to earnings after-tax	(4)	13	11
Cash flow hedges, net of reclassification adjustments pre-tax	(38)	8	(7)
Cash flow hedges, net of reclassification adjustments after-tax	(31)	7	(4)
Other comprehensive income (loss) attributable to Eaton ordinary shareholders pre-tax	(187)	(783)	1,128
Other comprehensive income (loss) attributable to Eaton ordinary shareholders after-tax	$ (145)	$ (741)	$ 1,044

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LEASES - Maturities of Lease Liabilities (Details) $ in Millions	Dec. 31, 2018 USD ($)
Leases [Abstract]
2019	$ 165
2020	133
2021	106
2022	75
2023	53
Thereafter	110
Total lease payments	$ 642

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Revenue Recognition (Tables)

12 Months Ended

Dec. 31, 2019

Disaggregation of Revenue [Line Items]

Schedule of Disaggregation of Sales [Table Text Block]

	2019
Net sales	United States		Rest of World		Total
Electrical Products	$	4,269	$	2,879	$	7,148
Electrical Systems and Services	4,148		2,139		6,287
Hydraulics	1,112		1,440		2,552
	Original Equipment Manufacturers		Aftermarket, Distribution and End User
Aerospace	$	1,167	$	877	2,044
	Commercial		Passenger and Light Duty
Vehicle	$	1,538	$	1,500	3,038
eMobility					321
Total					$	21,390

	2018
Net sales	United States		Rest of World		Total
Electrical Products	$	4,112	$	3,012	$	7,124
Electrical Systems and Services	3,936		2,088		6,024
Hydraulics	1,190		1,566		2,756
	Original Equipment Manufacturers		Aftermarket, Distribution and End User
Aerospace	$	1,085	$	811	1,896
	Commercial		Passenger and Light Duty
Vehicle	$	1,759	$	1,730	3,489
eMobility					320
Total					$	21,609

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	967
Revenue recognized in the period	(939		)
Translation	(7		)
Balance at December 31, 2018	$	248
Customer deposits and billings	982
Revenue recognized in the period	(993		)
Translation	3
Deferred revenue reclassified to held for sale	(6		)
Balance at December 31, 2019	$	234

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Business Segment and Geographic Region Information

12 Months Ended

Dec. 31, 2019

Segment Reporting [Abstract]

Business Segment and Geographic Region Information

BUSINESS SEGMENT AND GEOGRAPHIC REGION INFORMATION

Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated on a regular basis by the chief operating decision maker, or decision making group, in deciding how to allocate resources to an individual segment and in assessing performance. Eaton’s segments are as follows:

Electrical Products and Electrical Systems and Services

The Electrical Products segment consists of electrical components, industrial components, residential products, single phase power quality, emergency lighting, fire detection, wiring devices, structural support systems, circuit protection, and lighting products. The Electrical Systems and Services segment consists of 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 principal markets for these segments are industrial, institutional, governmental, utility, commercial, residential and information technology. These products are used wherever there is a demand for electrical power in commercial buildings, data centers, residences, apartment and office buildings, hospitals, factories, utilities, and industrial and energy facilities. The segments share several common global customers, but a large number of customers are located regionally. Sales are made directly to original equipment manufacturers, utilities, and certain other end users, as well as through distributors, resellers, and manufacturers' representatives.

Hydraulics

The Hydraulics segment is a global leader in hydraulics components, systems and services for industrial and mobile equipment. Eaton offers a wide range of power products including pumps, motors and hydraulic power units; a broad range of controls and sensing products including valves, cylinders and electronic controls; a full range of fluid conveyance products including industrial and hydraulic hose, fittings, and assemblies, thermoplastic hose and tubing, couplings, connectors, and assembly equipment; filtration systems solutions; industrial drum and disc brakes; and golf grips. The principal markets for the Hydraulics segment include renewable energy, marine, agriculture, oil and gas, construction, mining, forestry, utility, material handling, truck and bus, machine tools, molding, primary metals, and power generation. Key manufacturing customers in these markets and other customers are located globally. Products are sold and serviced through a variety of channels.

Aerospace

The Aerospace segment is a leading global supplier of aerospace fuel, hydraulics, and pneumatic systems for commercial and military use. Products include hydraulic power generation systems for aerospace applications including pumps, motors, hydraulic power units, hose and fittings, electro-hydraulic pumps; controls and sensing products including valves, cylinders, electronic controls, electromechanical actuators, sensors, aircraft flap and slat systems and nose wheel steering systems; fluid conveyance products, including hose, thermoplastic tubing, fittings, adapters, couplings, sealing and ducting; and fuel systems including fuel pumps, sensors, valves, adapters and regulators. The principal markets for the Aerospace segment are manufacturers of commercial and military aircraft and related after-market customers. These manufacturers and other customers operate globally. Products are sold and serviced through a variety of channels.

Vehicle

The Vehicle segment is a leader in the design, manufacture, marketing, and supply of: drivetrain, powertrain systems and critical components that reduce emissions and improve fuel economy, stability, performance, and safety of cars, light trucks and commercial vehicles. Products include transmissions, clutches, hybrid power systems, superchargers, engine valves and valve actuation systems, cylinder heads, locking and limited slip differentials, transmission controls, and fuel vapor components for the global vehicle industry. The principal markets for the Vehicle segment are original equipment manufacturers and aftermarket customers of heavy-, medium-, and light-duty trucks, SUVs, CUVs, passenger cars and agricultural equipment.

eMobility

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 principle markets for the eMobility segment are original equipment manufacturers and aftermarket customers of passenger cars, commercial vehicles, and construction, agriculture, and mining equipment.

Other Information

No single customer represented greater than 10% of net sales in 2019, 2018 or 2017, respectively.

The accounting policies of the business segments are generally the same as the policies described in Note 1, except that operating profit only reflects the service cost component and the cost of any special termination benefits related to pensions and other postretirement benefits. Intersegment sales and transfers are accounted for at the same prices as if the sales and transfers were made to third parties. These intersegment sales are eliminated in consolidation. Operating profit includes the operating profit from intersegment sales.

For purposes of business segment performance measurement, the Company does not allocate items that are of a non-operating nature or are of a corporate or functional governance nature. Corporate expenses consist of costs associated with acquisitions, divestitures, and gains and losses on the sale of certain businesses, and corporate office expenses including compensation, benefits, occupancy, depreciation, and other administrative costs. Identifiable assets of the business segments exclude goodwill, other intangible assets, and general corporate assets, which principally consist of certain cash, short-term investments, deferred income taxes, certain accounts receivable, certain property, plant and equipment, and certain other assets.

Business Segment Information

	2019			2018			2017
Net sales
Electrical Products	$	7,148		$	7,124		$	6,917
Electrical Systems and Services	6,287			6,024			5,666
Hydraulics	2,552			2,756			2,468
Aerospace	2,044			1,896			1,744
Vehicle	3,038			3,489			3,326
eMobility	321			320			283
Total net sales	$	21,390		$	21,609		$	20,404
Segment operating profit
Electrical Products	$	1,390		$	1,311		$	1,233
Electrical Systems and Services	1,027			896			770
Hydraulics	286			370			288
Aerospace	495			398			332
Vehicle	460			611			541
eMobility	17			44			50
Total segment operating profit	3,675			3,630			3,214
Corporate
Amortization of intangible assets	(367		)	(382		)	(388		)
Interest expense - net	(236		)	(271		)	(246		)
Pension and other postretirement benefits expense	(12		)	(1		)	(45		)
Gain on sale of business	—			—			1,077
Arbitration decision expense	—			(275		)	—
Other corporate expense - net	(469		)	(277		)	(244		)
Income before income taxes	2,591			2,424			3,368
Income tax expense	378			278			382
Net income	2,213			2,146			2,986
Less net income for noncontrolling interests	(2		)	(1		)	(1		)
Net income attributable to Eaton ordinary shareholders	$	2,211		$	2,145		$	2,985

	2019		2018		2017
Identifiable assets
Electrical Products	$	2,201	$	2,451	$	2,446
Electrical Systems and Services	2,532		2,243		2,141
Hydraulics	1,439		1,473		1,345
Aerospace	1,362		935		938
Vehicle	2,145		2,289		2,367
eMobility	141		139		136
Total identifiable assets	9,820		9,530		9,373
Goodwill	13,456		13,328		13,568
Other intangible assets	4,638		4,846		5,265
Corporate	3,514		3,388		4,417
Assets held for sale	1,377		—		—
Total assets	$	32,805	$	31,092	$	32,623
Capital expenditures for property, plant and equipment
Electrical Products	$	162	$	135	$	130
Electrical Systems and Services	108		101		83
Hydraulics	90		106		96
Aerospace	47		38		37
Vehicle	127		143		141
eMobility	8		4		4
Total	542		527		491
Corporate	45		38		29
Total expenditures for property, plant and equipment	$	587	$	565	$	520
Depreciation of property, plant and equipment
Electrical Products	$	126	$	136	$	138
Electrical Systems and Services	87		85		83
Hydraulics	66		64		61
Aerospace	27		26		26
Vehicle	102		104		109
eMobility	5		5		5
Total	413		420		422
Corporate	52		53		54
Total depreciation of property, plant and equipment	$	465	$	473	$	476

Geographic Region Information

Net sales are measured based on the geographic destination of sales. Long-lived assets consist of property, plant and equipment - net.

	2019		2018		2017
Net sales
United States	$	12,336	$	12,034	$	11,222
Canada	941		931		942
Latin America	1,312		1,442		1,485
Europe	4,311		4,553		4,394
Asia Pacific	2,490		2,649		2,361
Total	$	21,390	$	21,609	$	20,404
Long-lived assets
United States	$	1,821	$	1,898	$	1,872
Canada	24		20		20
Latin America	316		286		290
Europe	797		723		769
Asia Pacific	538		540		551
Total	$	3,496	$	3,467	$	3,502

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Derivative Financial Instruments and Hedging Activities - Impact of Derivatives Not Designated as Hedges (Details) $ in Millions	12 Months Ended
	Dec. 31, 2019 USD ($)
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) on derivatives not designated as hedges	$ 73
Currency exchange contracts | Other income - net
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) on derivatives not designated as hedges	73
Commodity contracts | Cost of products sold
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) on derivatives not designated as hedges	$ 0

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Consolidated Statements of Cash Flows - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Operating activities
Net income	$ 2,213	$ 2,146	$ 2,986
Adjustments to reconcile to net cash provided by operating activities
Depreciation and amortization	884	903	914
Deferred income taxes	(71)	(115)	(206)
Pension and other postretirement benefits expense	157	159	208
Contributions to pension plans	(119)	(126)	(473)
Contributions to other postretirement benefits plans	(15)	(25)	(20)
Loss (gain) on sale of businesses	66	0	(843)
Changes in working capital
Accounts receivable - net	200	(123)	(231)
Inventory	(60)	(242)	(202)
Accounts payable	147	23	388
Accrued compensation	(23)	23	59
Accrued income and other taxes	(49)	(31)	(4)
Other current assets	(94)	71	2
Other current liabilities	(57)	144	(203)
Other - net	272	(149)	291
Net cash provided by operating activities	3,451	2,658	2,666
Investing activities
Capital expenditures for property, plant and equipment	(587)	(565)	(520)
Cash paid for acquisitions of businesses, net of cash acquired	(1,180)	0	0
Proceeds from (payments for) sales of businesses	(36)	0	607
Sales (purchases) of short-term investments - net	(70)	355	(298)
Proceeds from (payments for) settlement of currency exchange contracts not designated as hedges - net	54	(110)	0
Other - net	(47)	(78)	(6)
Net cash used in investing activities	(1,866)	(398)	(217)
Financing activities
Proceeds from borrowings	1,232	410	1,000
Payments on borrowings	(507)	(574)	(1,554)
Cash dividends paid	(1,201)	(1,149)	(1,068)
Exercise of employee stock options	66	29	66
Repurchase of shares	(1,029)	(1,271)	(850)
Employee taxes paid from shares withheld	(46)	(24)	(22)
Other - net	(9)	(2)	(14)
Net cash used in financing activities	(1,494)	(2,581)	(2,442)
Effect of currency on cash	(4)	43	11
Total increase (decrease) in cash	87	(278)	18
Cash at the beginning of the period	283	561	543
Cash at the end of the period	$ 370	$ 283	$ 561

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Consolidated Statements of Income - USD ($) shares in Millions, $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Income Statement [Abstract]
Net sales	$ 21,390	$ 21,609	$ 20,404
Cost of products sold	14,338	14,511	13,756
Selling and administrative expense	3,583	3,548	3,526
Research and development expense	606	584	584
Interest expense - net	236	271	246
Gain on sale of business	0	0	1,077
Arbitration decision expense	0	275	0
Other expense (income) - net	36	(4)	1
Income before income taxes	2,591	2,424	3,368
Income tax expense	378	278	382
Net income	2,213	2,146	2,986
Less net income for noncontrolling interests	(2)	(1)	(1)
Net income attributable to Eaton ordinary shareholders	$ 2,211	$ 2,145	$ 2,985
Net income per share attributable to Eaton ordinary shareholders
Diluted (usd per share)	$ 5.25	$ 4.91	$ 6.68
Basic (usd per share)	$ 5.28	$ 4.93	$ 6.71
Weighted-average number of ordinary shares outstanding
Diluted (shares)	420.8	436.9	447.0
Basic (shares)	419.0	434.3	444.5
Cash dividends declared per ordinary share (usd per share)	$ 2.84	$ 2.64	$ 2.40

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Business Segment and Geographic Region Information - Other Information (Details) - Net sales - Customer Concentration Risk [Member] - customer	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Revenues from External Customers and Long-Lived Assets [Line Items]
Number of major customers	0	0	0
Concentration risk, percentage	10.00%	10.00%	10.00%