Eaton (ETN) 10-Q 2 Aug 16 2016 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information Document and Entity Information shares in Millions	6 Months Ended
	Jun. 30, 2016shares
Document and Entity Information [Abstract]
Entity Registrant Name	Eaton Corp plc
Trading Symbol	ETN
Entity Central Index Key	1,551,182
Document Type	10-Q
Document Period End Date	Jun. 30, 2016
Amendment Flag	false
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q2
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding (in shares)	454.7

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Income Statement [Abstract]
Net sales	$ 5,080	$ 5,372	$ 9,893	$ 10,595
Cost of products sold	3,419	3,675	6,710	7,268
Selling and administrative expense	897	901	1,789	1,816
Research and development expense	149	158	298	316
Interest expense - net	57	59	114	116
Other expense (income) - net	5	(19)	(13)	(24)
Income before income taxes	553	598	995	1,103
Income tax expense	61	63	100	101
Net income	492	535	895	1,002
Less net income for noncontrolling interests	(1)	0	0	(1)
Net income attributable to Eaton ordinary shareholders	$ 491	$ 535	$ 895	$ 1,001
Net income per share attributable to Eaton ordinary shareholders
Diluted (usd per share)	$ 1.07	$ 1.14	$ 1.95	$ 2.13
Basic (usd per share)	$ 1.08	$ 1.14	$ 1.96	$ 2.14
Weighted-average number of ordinary shares outstanding
Diluted (shares)	458.3	469.2	459	469.6
Basic (shares)	457	467.6	457.8	467.7
Cash dividends declared per ordinary share (usd per share)	$ 0.57	$ 0.55	$ 1.14	$ 1.1

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Statement of Comprehensive Income [Abstract]
Net income	$ 492	$ 535	$ 895	$ 1,002
Less net income for noncontrolling interests	(1)	0	0	(1)
Net income attributable to Eaton ordinary shareholders	491	535	895	1,001
Other comprehensive (loss) income, net of tax
Currency translation and related hedging instruments	(296)	209	(35)	(511)
Pensions and other postretirement benefits	53	18	87	104
Cash flow hedges	(12)	3	(34)	3
Other comprehensive (loss) income attributable to Eaton ordinary shareholders	(255)	230	18	(404)
Total comprehensive income attributable to Eaton ordinary shareholders	$ 236	$ 765	$ 913	$ 597

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions	Jun. 30, 2016	Dec. 31, 2015	Jun. 30, 2015	Dec. 31, 2014
Current assets
Cash	$ 323	$ 268	$ 303	$ 781
Short-term investments	146	177
Accounts receivable - net	3,628	3,479
Inventory	2,323	2,323
Prepaid expenses and other current assets	406	369
Total current assets	6,826	6,616
Property, plant and equipment - net	3,551	3,565
Other noncurrent assets
Goodwill	13,450	13,479
Other intangible assets	5,795	6,014
Deferred income taxes	413	362
Other assets	1,119	960
Total assets	31,154	30,996
Current liabilities
Short-term debt	557	426
Current portion of long-term debt	252	242
Accounts payable	1,802	1,758
Accrued compensation	316	366
Other current liabilities	1,889	1,833
Total current liabilities	4,816	4,625
Noncurrent liabilities
Long-term debt	7,605	7,746
Pension liabilities	1,554	1,586
Other postretirement benefits liabilities	433	440
Deferred income taxes	365	390
Other noncurrent liabilities	1,017	978
Total noncurrent liabilities	10,974	11,140
Shareholders’ equity
Eaton shareholders’ equity	15,320	15,186
Noncontrolling interests	44	45
Total equity	15,364	15,231
Total liabilities and equity	$ 31,154	$ 30,996

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Operating activities
Net income	$ 895	$ 1,002
Adjustments to reconcile to net cash provided by operating activities
Depreciation and amortization	467	460
Deferred income taxes	(74)	(29)
Pension and other postretirement benefits expense	116	158
Contributions to pension plans	(74)	(258)
Contributions to other postretirement benefits plans	(18)	(16)
Excess tax benefit from equity-based compensation	(3)	0
Changes in working capital	(273)	(506)
Other - net	80	(155)
Net cash provided by operating activities	1,116	656
Investing activities
Capital expenditures for property, plant and equipment	(246)	(246)
Cash received from (paid for) acquisitions of businesses, net of cash acquired	1	(38)
Sales of short-term investments - net	38	109
Proceeds from sale of businesses	0	1
Other - net	3	(33)
Net cash used in investing activities	(204)	(207)
Financing activities
Proceeds from borrowings	151	137
Payments on borrowings	(240)	(404)
Cash dividends paid	(521)	(514)
Exercise of employee stock options	37	46
Repurchase of shares	(295)	(170)
Excess tax benefit from equity-based compensation	3	0
Other - net	0	(7)
Net cash used in financing activities	(865)	(912)
Effect of currency on cash	8	(15)
Total increase (decrease) in cash	55	(478)
Cash at the beginning of the period	268	781
Cash at the end of the period	$ 323	$ 303

BASIS OF PRESENTATION

BASIS OF PRESENTATION	6 Months Ended
	Jun. 30, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
BASIS OF PRESENTATION	BASIS OF PRESENTATION The accompanying unaudited condensed consolidated financial statements of Eaton Corporation plc (Eaton or the Company) have been prepared in accordance with generally accepted accounting principles for interim financial information, the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by United States generally accepted accounting principles (US GAAP) for complete financial statements. However, in the opinion of management, all adjustments (consisting of normal recurring accruals) have been made that are necessary for a fair presentation of the condensed consolidated financial statements for the interim periods. This Form 10-Q should be read in conjunction with the consolidated financial statements and related notes included in Eaton’s 2015 Form 10-K. The interim period results are not necessarily indicative of the results to be expected for the full year. Management has evaluated subsequent events through the date this Form 10-Q was filed with the Securities and Exchange Commission. During the first quarter of 2016 , the Company adopted Accounting Standards Update 2015-03, Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs (ASU 2015-03). ASU 2015-03 requires that debt issuance costs be presented in the balance sheet as a direct deduction from the related debt liability rather than an asset. The Company has applied this standard retrospectively. The adoption of ASU 2015-03 resulted in the reclassification of $33 and $35 within the Company's Condensed Consolidated Balance Sheets as of June 30, 2016 and December 31, 2015, respectively, from Other noncurrent assets to a reduction in Long-term debt. Certain prior year amounts have been reclassified to conform to the current year presentation. Recently Issued Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update 2016-02, Leases (Topic 842), (ASU 2016-02). This accounting standard requires that a lessee recognize a lease asset and a lease liability on its balance sheet for all leases, including operating leases, with a term greater than 12 months. ASU 2016-02 will require additional disclosures in the notes to the consolidated financial statements and is effective for annual and interim reporting periods beginning after December 15, 2018. Eaton is evaluating the impact of ASU 2016-02 and an estimate of the impact to the consolidated financial statements cannot be made at this time. In May 2014, the FASB issued Accounting Standards Update 2014-09, Revenue from Contracts with Customers (ASU 2014-09). This accounting standard supersedes all existing US GAAP revenue recognition guidance. Under ASU 2014-09, a company will recognize revenue when it transfers the control of promised goods or services to customers in an amount that reflects the consideration which the company expects to collect in exchange for those goods or services. ASU 2014-09 will require additional disclosures in the notes to the consolidated financial statements and is effective for annual and interim reporting periods beginning after December 15, 2016. In August 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers: Deferral of the Effective Date (ASU 2015-14). This accounting standard defers the effective date of ASU 2014-09 for one year and permits early adoption as of the original effective date. Eaton is evaluating the impact of ASU 2014-09 and an estimate of the impact to the consolidated financial statements cannot be made at this time.

ACQUISITIONS OF BUSINESSES

ACQUISITIONS OF BUSINESSES	6 Months Ended
	Jun. 30, 2016
Business Combinations [Abstract]
ACQUISITION OF BUSINESSES	ACQUISITIONS OF BUSINESSES Acquisition of Ephesus Lighting, Inc. On October 28, 2015, Eaton acquired Ephesus Lighting, Inc. (Ephesus). Ephesus is a leader in LED lighting for stadiums and other high lumen outdoor and industrial applications. Its sales for the 12 months ended September 30, 2015 were $23 . Ephesus is reported within the Electrical Products business segment. Acquisition of UK Safety Technology Manufacturer Oxalis Group Ltd. On January 12, 2015, Eaton acquired Oxalis Group Ltd. (Oxalis). Oxalis is a manufacturer of closed-circuit television camera stations, public address and general alarm systems and other electrical products for the hazardous area, marine and industrial communications markets. Its sales for the 12 months ended December 31, 2014 were $9 . Oxalis is reported within the Electrical Systems and Services business segment.

ACQUISITION INTEGRATION CHARGES

ACQUISITION INTEGRATION CHARGES	6 Months Ended
	Jun. 30, 2016
Acquisitions Integration Charges [Abstract]
ACQUISITION INTEGRATION CHARGES	ACQUISITION INTEGRATION CHARGES Eaton incurs integration charges related to acquired businesses. A summary of these charges follows: Three months ended Six months ended 2016 2015 2016 2015 Electrical Products $ 1 $ 6 $ 1 $ 12 Electrical Systems and Services — 4 1 7 Hydraulics — 1 — 2 Total business segments 1 11 2 21 Corporate — 1 — 2 Total acquisition integration charges before income taxes 1 12 2 23 Income taxes — 4 1 8 Total after income taxes $ 1 $ 8 $ 1 $ 15 Per ordinary share - diluted $ — $ 0.02 $ — $ 0.03 Business segment acquisition integration charges in 2016 related to the integration of Ephesus and Oxalis. The charges associated with Ephesus and Oxalis were included in Selling and administrative expense and Cost of products sold, respectively. Business segment acquisition integration charges in 2015 related primarily to the integration of Cooper Industries plc (Cooper), which was acquired in 2012. The integration of Cooper included costs related to restructuring activities Eaton undertook in an effort to gain efficiencies in selling, marketing, traditional back-office functions, manufacturing, and distribution. These charges were included in Cost of products sold or Selling and administrative expense, as appropriate. In Business Segment Information, the charges reduced Operating profit of the related business segment. See Note 13 for additional information about business segments. Corporate acquisition integration charges in 2015 also related to the integration of Cooper. These charges were included in Selling and administrative expense. In Business Segment Information, the charges were included in Other corporate expense - net.

RESTRUCTURING CHARGES

RESTRUCTURING CHARGES	6 Months Ended
	Jun. 30, 2016
Restructuring and Related Activities [Abstract]
RESTRUCTURING CHARGES	RESTRUCTURING CHARGES During 2015 , Eaton announced its intention to undertake actions to reduce its cost structure in all business segments and at corporate. Restructuring charges for the three and six months ended June 30, 2016 , were $35 and $98 , respectively, and were $4 and $14 for the three and six months ended June 30, 2015 , respectively. The charges associated with restructuring activities are anticipated to be $145 in 2016 and $130 in 2017. A summary of restructuring charges by type follows: Three months ended Six months ended 2016 2015 2016 2015 Workforce reductions $ 20 $ 3 $ 77 $ 12 Plant closings and other 15 1 21 2 Total $ 35 $ 4 $ 98 $ 14 A summary of restructuring charges by segment follows: Three months ended Six months ended 2016 2015 2016 2015 Electrical Products $ 9 $ 1 $ 26 $ 1 Electrical Systems & Services 3 — 13 — Hydraulics 18 1 34 9 Aerospace — — 4 — Vehicle 5 2 17 4 Corporate — — 4 — Total $ 35 $ 4 $ 98 $ 14 A summary of liabilities related to workforce reductions, plant closings and other associated costs follows: Workforce reductions Plant closings and other Total Balance at December 31, 2014 $ — $ — $ — Liability recognized 112 17 129 Payments (59 ) (3 ) (62 ) Other adjustments 1 (14 ) (13 ) Balance at December 31, 2015 54 — 54 Liability recognized 77 21 98 Payments (55 ) (9 ) (64 ) Other adjustments (1 ) (11 ) (12 ) Balance at June 30, 2016 $ 75 $ 1 $ 76 These charges were included in Cost of products sold, Selling and administrative expenses or Other income-net, as appropriate. In Business Segment Information, the charges reduced Operating profit of the related business segment. See Note 13 for additional information about business segments.

GOODWILL

GOODWILL	6 Months Ended
	Jun. 30, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
GOODWILL	GOODWILL A summary of goodwill follows: Electrical Products Electrical Systems and Services Hydraulics Aerospace Vehicle Total December 31, 2015 $ 6,642 $ 4,279 $ 1,259 $ 956 $ 343 $ 13,479 Additions 1 — — — — 1 Translation (21 ) (5 ) 4 (10 ) 2 (30 ) June 30, 2016 $ 6,622 $ 4,274 $ 1,263 $ 946 $ 345 $ 13,450

RETIRED BENEFIT PLANS

RETIRED BENEFIT PLANS	6 Months Ended
	Jun. 30, 2016
Compensation and Retirement Disclosure [Abstract]
RETIREMENT BENEFITS PLANS	RETIREMENT BENEFITS PLANS The components of retirement benefits expense follow: United States pension benefit expense Non-United States pension benefit expense Other postretirement benefits expense Three months ended June 30 2016 2015 2016 2015 2016 2015 Service cost $ 27 $ 30 $ 17 $ 19 $ 1 $ 1 Interest cost 32 39 16 18 5 6 Expected return on plan assets (62 ) (65 ) (24 ) (25 ) (2 ) (1 ) Amortization 23 30 8 10 (2 ) 1 20 34 17 22 2 7 Settlements and curtailments 18 19 — — — — Total expense $ 38 $ 53 $ 17 $ 22 $ 2 $ 7 United States Non-United States Other postretirement Six months ended June 30 2016 2015 2016 2015 2016 2015 Service cost $ 55 $ 61 $ 33 $ 37 $ 2 $ 3 Interest cost 63 78 32 36 9 12 Expected return on plan assets (125 ) (131 ) (48 ) (50 ) (3 ) (2 ) Amortization 46 60 17 20 (4 ) 1 39 68 34 43 4 14 Settlements and curtailments 39 33 — — — — Total expense $ 78 $ 101 $ 34 $ 43 $ 4 $ 14

LEGAL CONTINGENCIES

LEGAL CONTINGENCIES	6 Months Ended
	Jun. 30, 2016
Commitments and Contingencies Disclosure [Abstract]
LEGAL CONTINGENCIES	LEGAL CONTINGENCIES Eaton is subject to a broad range of claims, administrative and legal proceedings such as lawsuits that relate to contractual allegations, tax audits, patent infringement, personal injuries, antitrust matters and employment-related matters. Eaton is also subject to asbestos claims from historic products which may have contained asbestos. Insurance may cover some of the costs associated with these claims. Although it is not possible to predict with certainty the outcome or cost of these matters, the Company believes they will not have a material adverse effect on the consolidated financial statements. In December 2010, a Brazilian court held that a judgment obtained by a Brazilian company, Raysul, against another Brazilian company, Saturnia, which was sold by Eaton in 2006 , could be enforced against Eaton Ltda. The judgment was based on an alleged violation of an agency agreement between Raysul and Saturnia. At March 31, 2016, the Company had a total accrual of 100 Brazilian Reais related to this matter ( $31 based on current exchange rates). In June 2016, Eaton signed a settlement agreement and resolved the matter, which did not have a material impact on the consolidated financial statements.

INCOME TAXES

INCOME TAXES	6 Months Ended
	Jun. 30, 2016
Income Tax Disclosure [Abstract]
INCOME TAXES	INCOME TAXES The effective income tax rate for the second quarter and first six months of 2016 was expense of 11% , and 10% , respectively, compared to an expense of 11% and 9% for the second quarter and first six months of 2015 . The increase in the effective tax rate in the first six months of 2016 was primarily due to more income earned in higher tax jurisdictions.

EQUITY

EQUITY	6 Months Ended
	Jun. 30, 2016
Stockholders' Equity Note [Abstract]
EQUITY	EQUITY On October 22, 2013, Eaton's Board of Directors adopted a share repurchase program (2013 Program) that authorizes the repurchase of 40 million ordinary shares. During the first quarter of 2016 and 2015 , 1.5 million and 2.4 million ordinary shares were repurchased under the 2013 Program in the open market at a total cost of $82 and $170 , respectively. On February 24, 2016, the Board of Directors approved a new share repurchase program for share repurchases up to $2,500 of ordinary shares (2016 Program). Under the 2016 Program, the ordinary shares are expected to be repurchased over time, depending on market conditions, the market price of ordinary shares, capital levels, and other considerations. During the first and second quarter of 2016 , 0.3 million and 3.7 million shares, respectively, were purchased on the open market under the 2016 Program for a total cost of $18 and $224 , respectively. The changes in Shareholders’ equity follow: Eaton shareholders’ equity Noncontrolling interests Total equity Balance at December 31, 2015 $ 15,186 $ 45 $ 15,231 Net income 895 — 895 Other comprehensive income 18 — 18 Cash dividends paid (521 ) — (521 ) Issuance of shares under equity-based compensation plans - net 66 — 66 Repurchase of shares (324 ) — (324 ) Change in capital — (1 ) (1 ) Balance at June 30, 2016 $ 15,320 $ 44 $ 15,364 The changes in Accumulated other comprehensive loss follow: Currency translation and related hedging instruments Pensions and other postretirement benefits Cash flow hedges Total Balance at December 31, 2015 $ (2,492 ) $ (1,374 ) $ 3 $ (3,863 ) Other comprehensive (loss) income before reclassifications (35 ) 22 (33 ) (46 ) Amounts reclassified from Accumulated other comprehensive loss (income) — 65 (1 ) 64 Net current-period Other comprehensive income (loss) (35 ) 87 (34 ) 18 Balance at June 30, 2016 $ (2,527 ) $ (1,287 ) $ (31 ) $ (3,845 ) The reclassifications out of Accumulated other comprehensive loss follow: Six months ended June 30, 2016 Consolidated statements of income classification Amortization of defined benefit pensions and other postretirement benefits items Actuarial loss and prior service cost $ (98 ) 1 Tax benefit 33 Total, net of tax (65 ) Gains and (losses) on cash flow hedges Currency exchange contracts 1 Cost of products sold Tax expense — Total, net of tax 1 Total reclassifications for the period $ (64 ) 1 These components of Accumulated other comprehensive loss are included in the computation of net periodic benefit cost. See Note 6 for additional information about pension and other postretirement benefits items. Net Income Per Share Attributable to Eaton Ordinary Shareholders A summary of the calculation of net income per share attributable to Eaton ordinary shareholders follows: Three months ended Six months ended (Shares in millions) 2016 2015 2016 2015 Net income attributable to Eaton ordinary shareholders $ 491 $ 535 $ 895 $ 1,001 Weighted-average number of ordinary shares outstanding - diluted 458.3 469.2 459.0 469.6 Less dilutive effect of equity-based compensation 1.3 1.6 1.2 1.9 Weighted-average number of ordinary shares outstanding - basic 457.0 467.6 457.8 467.7 Net income per share attributable to Eaton ordinary shareholders Diluted $ 1.07 $ 1.14 $ 1.95 $ 2.13 Basic 1.08 1.14 1.96 2.14 For the second quarter and first six months of 2016 , 1.5 million and 1.9 million stock options, respectively, were excluded from the calculation of diluted net income per share attributable to Eaton ordinary shareholders because the exercise price of the options exceeded the average market price of the ordinary shares during the period and their effect, accordingly, would have been antidilutive. For the second quarter and first six months of 2015 , 1.3 million and 1.1 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 periods and their effect, accordingly, would have been antidilutive.

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	6 Months Ended
	Jun. 30, 2016
Fair Value Disclosures [Abstract]
FAIR VALUE MEASUREMENTS	FAIR VALUE MEASUREMENTS Fair value is measured based on an exit price, representing the amount that would be received to sell an asset or paid to satisfy a liability in an orderly transaction between market participants. Fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions, a fair value hierarchy is established, which categorizes the inputs used in measuring fair value as follows: (Level 1) observable inputs such as quoted prices in active markets; (Level 2) inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and (Level 3) unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions. A summary of financial instruments recognized at fair value, and the fair value measurements used, follows: Total Level 1 Level 2 Level 3 June 30, 2016 Cash $ 323 $ 323 $ — $ — Short-term investments 146 146 — — Net derivative contracts 152 — 152 — Long-term debt converted to floating interest rates by interest rate swaps - net (200 ) — (200 ) — December 31, 2015 Cash $ 268 $ 268 $ — $ — Short-term investments 177 177 — — Net derivative contracts 86 — 86 — Long-term debt converted to floating interest rates by interest rate swaps - net (94 ) — (94 ) — Eaton values its financial instruments using an industry standard market approach, in which prices and other relevant information is generated by market transactions involving identical or comparable assets or liabilities. No financial instruments were measured using unobservable inputs. Other Fair Value Measurements Long-term debt and the current portion of long-term debt had a carrying value of $7,857 and fair value of $8,506 at June 30, 2016 compared to $7,988 and $8,231 , respectively, at December 31, 2015 . The fair value of Eaton's debt instruments were estimated using prevailing market interest rates on debt with similar creditworthiness, terms and maturities, and are considered a Level 2 fair value measurement.

DERIVATIVE FINANCIAL INSTRUMENT

DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES	6 Months Ended
	Jun. 30, 2016
Derivative Instruments and Hedging Activities Disclosure [Abstract]
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES	DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES In the normal course of business, Eaton is exposed to certain risks related to fluctuations in interest rates, currency exchange rates and commodity prices. The Company uses various derivative and non-derivative financial instruments, primarily interest rate swaps, currency forward exchange contracts, currency swaps and, to a lesser extent, commodity contracts, to manage risks from these market fluctuations. The instruments used by Eaton are straightforward, non-leveraged instruments. The counterparties to these instruments are financial institutions with strong credit ratings. Eaton maintains control over the size of positions entered into with any one counterparty and regularly monitors the credit rating of these institutions. Such instruments are not purchased and sold for trading purposes. Derivative financial instruments are accounted for at fair value and recognized as assets or liabilities in the Condensed Consolidated Balance Sheets. Accounting for the gain or loss resulting from the change in the fair value of the derivative financial instrument depends on whether it has been designated, and is effective, as part of a hedging relationship and, if so, as to the nature of the hedging activity. Eaton formally documents all relationships between derivative financial instruments accounted for as designated hedges and the hedged item, as well as its risk-management objective and strategy for undertaking the hedge transaction. This process includes linking derivative financial instruments to a recognized asset or liability, specific firm commitment, forecasted transaction, or net investment in a foreign operation. These financial instruments can be designated as: • Hedges of the change in the fair value of a recognized fixed-rate asset or liability, or the firm commitment to acquire such an asset or liability (a fair value hedge); for these hedges, the gain or loss from the derivative financial instrument, as well as the offsetting loss or gain on the hedged item attributable to the hedged risk, are recognized in income during the period of change in fair value. • Hedges of the variable cash flows of a recognized variable-rate asset or liability, or the forecasted acquisition of such an asset or liability (a cash flow hedge); for these hedges, the effective portion of the gain or loss from the derivative financial instrument is recognized in Accumulated other comprehensive loss and reclassified to income in the same period when the gain or loss on the hedged item is included in income. • Hedges of the currency exposure related to a net investment in a foreign operation (a net investment hedge); for these hedges, the effective portion of the gain or loss from the derivative financial instrument is recognized in Accumulated other comprehensive loss and reclassified to income in the same period when the gain or loss related to the net investment in the foreign operation is included in income. The gain or loss from a derivative financial instrument designated as a hedge that is effective is classified in the same line of the Consolidated Statements of Income as the offsetting loss or gain on the hedged item. The change in fair value of a derivative financial instrument that is not effective as a hedge is immediately recognized in income. For derivatives that are not designated as a hedge, any gain or loss is immediately recognized in income. The majority of derivatives used in this manner relate to risks resulting from assets or liabilities denominated in a foreign currency and certain commodity contracts that arise in the normal course of business. Gains and losses associated with commodity hedge contracts are classified in Cost of products sold. Eaton uses certain of its debt denominated in foreign currency to hedge portions of its net investments in foreign operations against foreign currency exposure (net investment hedges). Foreign currency denominated debt designated on an after-tax basis as non-derivative net investment hedging instruments was $97 at June 30, 2016 and $83 at December 31, 2015 . Derivative Financial Statement Impacts The fair value of derivative financial instruments recognized in the Condensed Consolidated Balance Sheets follows: Notional amount Other current assets Other noncurrent assets Other current liabilities Other noncurrent liabilities Type of hedge Term June 30, 2016 Derivatives designated as hedges Fixed-to-floating interest rate swaps $ 3,765 $ 1 $ 199 $ — $ — Fair value 1 month to 18 years Forward starting floating-to-fixed interest rate swaps 400 — — — 19 Cash flow 12 years Currency exchange contracts 859 6 1 21 14 Cash flow 1 to 36 months Total $ 7 $ 200 $ 21 $ 33 Derivatives not designated as hedges Currency exchange contracts $ 3,469 $ 35 $ — $ 38 $ — 1 to 24 months Commodity contracts 50 2 — 1 to 12 months Total $ 37 $ — $ 38 $ — December 31, 2015 Derivatives designated as hedges Fixed-to-floating interest rate swaps $ 3,715 $ — $ 96 $ — $ 2 Fair value 2 to 19 years Forward starting floating-to-fixed interest rate swaps 50 — — — — Cash flow 12 years Currency exchange contracts 724 18 1 8 6 Cash flow 1 to 36 months Commodity contracts 1 — — — — Cash flow 1 to 12 months Total $ 18 $ 97 $ 8 $ 8 Derivatives not designated as hedges Currency exchange contracts $ 4,198 $ 27 $ 40 1 to 12 months Total $ 27 $ 40 The currency exchange contracts shown in the table above as derivatives not designated as hedges are primarily contracts entered into to manage currency volatility or exposure on intercompany sales and loans. While Eaton does not elect hedge accounting treatment for these derivatives, Eaton targets managing 100% of the intercompany balance sheet exposure to minimize the effect of currency volatility related to the movement of goods and services in the normal course of its operations. This activity represents the great majority of these currency exchange contracts. The impact of derivative instruments to the Consolidated Statement of Income and Comprehensive Income follow: Gain (loss) recognized in other comprehensive (loss) income Location of gain (loss) reclassified from Accumulated other comprehensive loss Gain (loss) reclassified from Accumulated other comprehensive loss Three months ended Three months ended 2016 2015 2016 2015 Derivatives designated as cash flow hedges Forward starting floating-to-fixed interest rate swaps $ (10 ) $ — Interest expense - net $ — $ — Currency exchange contracts (10 ) 8 Cost of products sold (2 ) 4 Total $ (20 ) $ 8 $ (2 ) $ 4 Gain (loss) recognized in other comprehensive (loss) income Location of gain (loss) reclassified from Accumulated other comprehensive loss Gain (loss) reclassified from Accumulated other comprehensive loss Six months ended Six months ended 2016 2015 2016 2015 Derivatives designated as cash flow hedges Forward starting floating-to-fixed interest rate swaps $ (19 ) $ — Interest expense - net $ — $ — Currency exchange contracts (32 ) 10 Cost of products sold 1 6 Total $ (51 ) $ 10 $ 1 $ 6 Amounts recognized in net income follow: Three months ended Six months ended 2016 2015 2016 2015 Derivatives designated as fair value hedges Fixed-to-floating interest rate swaps $ 30 $ (51 ) $ 106 $ (3 ) Related long-term debt converted to floating interest rates by interest rate swaps (30 ) 51 (106 ) 3 $ — $ — $ — $ — Gains and losses described above were recognized in Interest expense - net.

INVENTORY

INVENTORY	6 Months Ended
	Jun. 30, 2016
Inventory Disclosure [Abstract]
INVENTORY	INVENTORY The components of inventory follow: June 30, December 31, Raw materials $ 917 $ 885 Work-in-process 430 412 Finished goods 1,075 1,131 Inventory at FIFO 2,422 2,428 Excess of FIFO over LIFO cost (99 ) (105 ) Total inventory $ 2,323 $ 2,323

BUSINESS SEGMENT INFORMATION

BUSINESS SEGMENT INFORMATION	6 Months Ended
	Jun. 30, 2016
Segment Reporting [Abstract]
BUSINESS SEGMENT INFORMATION	BUSINESS SEGMENT INFORMATION Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated on a regular basis by the chief operating decision maker, or decision making group, in deciding how to allocate resources to an individual segment and in assessing performance. Eaton’s operating segments are Electrical Products, Electrical Systems and Services, Hydraulics, Aerospace and Vehicle. Operating profit includes the operating profit from intersegment sales. For additional information regarding Eaton’s business segments, see Note 15 to the Consolidated Financial Statements contained in the 2015 Form 10-K. Three months ended Six months ended 2016 2015 2016 2015 Net sales Electrical Products $ 1,784 $ 1,784 $ 3,464 $ 3,475 Electrical Systems and Services 1,429 1,502 2,771 2,950 Hydraulics 589 643 1,140 1,308 Aerospace 447 454 892 918 Vehicle 831 989 1,626 1,944 Total net sales $ 5,080 $ 5,372 $ 9,893 $ 10,595 Segment operating profit Electrical Products $ 322 $ 276 $ 593 $ 536 Electrical Systems and Services 178 223 337 409 Hydraulics 59 74 100 140 Aerospace 83 77 163 154 Vehicle 137 190 255 354 Total segment operating profit 779 840 1,448 1,593 Corporate Amortization of intangible assets (98 ) (102 ) (198 ) (204 ) Interest expense - net (57 ) (59 ) (114 ) (116 ) Pension and other postretirement benefits expense (13 ) (33 ) (27 ) (61 ) Other corporate expense - net (58 ) (48 ) (114 ) (109 ) Income before income taxes 553 598 995 1,103 Income tax expense 61 63 100 101 Net income 492 535 895 1,002 Less net income for noncontrolling interests (1 ) — — (1 ) Net income attributable to Eaton ordinary shareholders $ 491 $ 535 $ 895 $ 1,001

CONDENSED CONSOLIDATING FINANCI

CONDENSED CONSOLIDATING FINANCIAL STATEMENTS	6 Months Ended
	Jun. 30, 2016
Condensed Consolidating Financial Information [Abstract]
CONDENSED CONSOLIDATING FINANCIAL STATEMENTS	CONDENSED CONSOLIDATING FINANCIAL STATEMENTS On November 14, 2013, Eaton Corporation registered senior notes under the Securities Act of 1933 (the Senior Notes). Eaton and certain other of Eaton's 100% owned direct and indirect subsidiaries (the Guarantors) fully and unconditionally guaranteed (subject, in the case of the Guarantors, other than Eaton, to customary release provisions as described below), on a joint and several basis, the Senior Notes. The following condensed consolidating financial statements are included so that separate financial statements of Eaton, Eaton Corporation and each of the Guarantors are not required to be filed with the Securities and Exchange Commission. The consolidating adjustments primarily relate to eliminations of investments in subsidiaries and intercompany balances and transactions. The condensed consolidating financial statements present investments in subsidiaries using the equity method of accounting. The guarantee of a Guarantor that is not a parent of the issuer will be automatically and unconditionally released and discharged in the event of any sale of the Guarantor or of all or substantially all of its assets, or in connection with the release or termination of the Guarantor as a guarantor under all other U.S. debt securities or U.S. syndicated credit facilities, subject to limitations set forth in the indenture. The guarantee of a Guarantor that is a direct or indirect parent of the issuer will only be automatically and unconditionally released and discharged in connection with the release or termination of such Guarantor as a guarantor under all other debt securities or syndicated credit facilities (in both cases, U.S. or otherwise), subject to limitations set forth in the indenture. During 2015 and 2016, the Company undertook certain steps to restructure ownership of various subsidiaries. The transactions were entirely among wholly-owned subsidiaries under the common control of Eaton. This restructuring has been reflected as of the beginning of the earliest period presented below. CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME FOR THE THREE MONTHS ENDED JUNE 30, 2016 Eaton Corporation plc Eaton Corporation Guarantors Other subsidiaries Consolidating adjustments Total Net sales $ — $ 1,644 $ 1,640 $ 3,065 $ (1,269 ) $ 5,080 Cost of products sold — 1,263 1,197 2,230 (1,271 ) 3,419 Selling and administrative expense 2 353 192 350 — 897 Research and development expense — 55 46 48 — 149 Interest expense (income) - net — 57 6 (7 ) 1 57 Other expense (income) - net — 12 4 (11 ) — 5 Equity in loss (earnings) of subsidiaries, net of tax (594 ) (155 ) (820 ) (141 ) 1,710 — Intercompany expense (income) - net 101 (46 ) 317 (372 ) — — Income (loss) before income taxes 491 105 698 968 (1,709 ) 553 Income tax expense (benefit) — 13 13 35 — 61 Net income (loss) 491 92 685 933 (1,709 ) 492 Less net loss (income) for noncontrolling interests — — — (2 ) 1 (1 ) Net income (loss) attributable to Eaton ordinary shareholders $ 491 $ 92 $ 685 $ 931 $ (1,708 ) $ 491 Other comprehensive income (loss) $ (255 ) $ (7 ) $ (251 ) $ (334 ) $ 592 $ (255 ) Total comprehensive income (loss) attributable to Eaton ordinary shareholders $ 236 $ 85 $ 434 $ 597 $ (1,116 ) $ 236 CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME FOR THE THREE MONTHS ENDED JUNE 30, 2015 Eaton Corporation plc Eaton Corporation Guarantors Other subsidiaries Consolidating adjustments Total Net sales $ — $ 1,806 $ 1,705 $ 3,248 $ (1,387 ) $ 5,372 Cost of products sold — 1,433 1,273 2,322 (1,353 ) 3,675 Selling and administrative expense 2 368 172 359 — 901 Research and development expense — 66 49 43 — 158 Interest expense (income) - net — 58 5 (2 ) (2 ) 59 Other expense (income) - net — 11 (7 ) (23 ) — (19 ) Equity in loss (earnings) of subsidiaries, net of tax (619 ) (58 ) (802 ) (127 ) 1,606 — Intercompany expense (income) - net 82 (267 ) 481 (296 ) — — Income (loss) before income taxes 535 195 534 972 (1,638 ) 598 Income tax expense (benefit) — 41 (38 ) 75 (15 ) 63 Net income (loss) 535 154 572 897 (1,623 ) 535 Less net loss (income) for noncontrolling interests — — — (1 ) 1 — Net income (loss) attributable to Eaton ordinary shareholders $ 535 $ 154 $ 572 $ 896 $ (1,622 ) $ 535 Other comprehensive income (loss) $ 230 $ 19 $ 235 $ 288 $ (542 ) $ 230 Total comprehensive income (loss) attributable to Eaton ordinary shareholders $ 765 $ 173 $ 807 $ 1,184 $ (2,164 ) $ 765 CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME FOR THE SIX MONTHS ENDED JUNE 30, 2016 Eaton Corporation plc Eaton Corporation Guarantors Other subsidiaries Consolidating adjustments Total Net sales $ — $ 3,182 $ 3,210 $ 5,943 $ (2,442 ) $ 9,893 Cost of products sold — 2,459 2,392 4,305 (2,446 ) 6,710 Selling and administrative expense 4 718 386 681 — 1,789 Research and development expense — 117 95 86 — 298 Interest expense (income) - net — 110 9 (10 ) 5 114 Other expense (income) - net — 16 (3 ) (26 ) — (13 ) Equity in loss (earnings) of subsidiaries, net of tax (1,098 ) (325 ) (1,489 ) (234 ) 3,146 — Intercompany expense (income) - net 199 (88 ) 577 (688 ) — — Income (loss) before income taxes 895 175 1,243 1,829 (3,147 ) 995 Income tax expense (benefit) — 20 14 66 — 100 Net income (loss) 895 155 1,229 1,763 (3,147 ) 895 Less net loss (income) for noncontrolling interests — — — (2 ) 2 — Net income (loss) attributable to Eaton ordinary shareholders $ 895 $ 155 $ 1,229 $ 1,761 $ (3,145 ) $ 895 Other comprehensive income (loss) $ 18 $ 33 $ 25 $ (36 ) $ (22 ) $ 18 Total comprehensive income (loss) attributable to Eaton ordinary shareholders $ 913 $ 188 $ 1,254 $ 1,725 $ (3,167 ) $ 913 CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME FOR THE SIX MONTHS ENDED JUNE 30, 2015 Eaton Corporation plc Eaton Corporation Guarantors Other subsidiaries Consolidating adjustments Total Net sales $ — $ 3,508 $ 3,401 $ 6,364 $ (2,678 ) $ 10,595 Cost of products sold — 2,743 2,568 4,599 (2,642 ) 7,268 Selling and administrative expense 4 745 348 719 — 1,816 Research and development expense — 137 94 85 — 316 Interest expense (income) - net — 112 11 (7 ) — 116 Other expense (income) - net — 6 (8 ) (22 ) — (24 ) Equity in loss (earnings) of subsidiaries, net of tax (1,164 ) (267 ) (1,515 ) (253 ) 3,199 — Intercompany expense (income) - net 159 (308 ) 752 (603 ) — — Income (loss) before income taxes 1,001 340 1,151 1,846 (3,235 ) 1,103 Income tax expense (benefit) — 19 (17 ) 116 (17 ) 101 Net income (loss) 1,001 321 1,168 1,730 (3,218 ) 1,002 Less net loss (income) for noncontrolling interests — — — (2 ) 1 (1 ) Net income (loss) attributable to Eaton ordinary shareholders $ 1,001 $ 321 $ 1,168 $ 1,728 $ (3,217 ) $ 1,001 Other comprehensive income (loss) $ (404 ) $ 63 $ (385 ) $ (465 ) $ 787 $ (404 ) Total comprehensive income (loss) attributable to Eaton $ 597 $ 384 $ 783 $ 1,263 $ (2,430 ) $ 597 CONDENSED CONSOLIDATING BALANCE SHEETS JUNE 30, 2016 Eaton Corporation plc Eaton Corporation Guarantors Other subsidiaries Consolidating adjustments Total Assets Current assets Cash $ — $ 4 $ 5 $ 314 $ — $ 323 Short-term investments — — 1 145 — 146 Accounts receivable - net — 506 1,100 2,022 — 3,628 Intercompany accounts receivable 10 710 4,143 3,378 (8,241 ) — Inventory — 370 637 1,392 (76 ) 2,323 Prepaid expenses and other current assets — 112 45 224 25 406 Total current assets 10 1,702 5,931 7,475 (8,292 ) 6,826 Property, plant and equipment - net — 885 720 1,946 — 3,551 Other noncurrent assets Goodwill — 1,355 6,264 5,831 — 13,450 Other intangible assets — 175 3,528 2,092 — 5,795 Deferred income taxes — 999 — 236 (822 ) 413 Investment in subsidiaries 32,022 13,353 71,629 11,997 (129,001 ) — Intercompany loans receivable — 7,751 1,509 54,824 (64,084 ) — Other assets — 620 127 372 — 1,119 Total assets $ 32,032 $ 26,840 $ 89,708 $ 84,773 $ (202,199 ) $ 31,154 Liabilities and shareholders’ equity Current liabilities Short-term debt $ — $ 532 $ — $ 25 $ — $ 557 Current portion of long-term debt — 251 — 1 — 252 Accounts payable — 427 322 1,053 — 1,802 Intercompany accounts payable 157 4,042 2,917 1,125 (8,241 ) — Accrued compensation — 63 39 214 — 316 Other current liabilities 30 584 336 940 (1 ) 1,889 Total current liabilities 187 5,899 3,614 3,358 (8,242 ) 4,816 Noncurrent liabilities Long-term debt — 6,915 667 17 6 7,605 Pension liabilities — 618 167 769 — 1,554 Other postretirement benefits liabilities — 239 116 78 — 433 Deferred income taxes — — 755 432 (822 ) 365 Intercompany loans payable 16,525 1,924 44,729 906 (64,084 ) — Other noncurrent liabilities — 371 211 435 — 1,017 Total noncurrent liabilities 16,525 10,067 46,645 2,637 (64,900 ) 10,974 Shareholders’ equity Eaton shareholders' equity 15,320 10,874 39,449 78,740 (129,063 ) 15,320 Noncontrolling interests — — — 38 6 44 Total equity 15,320 10,874 39,449 78,778 (129,057 ) 15,364 Total liabilities and equity $ 32,032 $ 26,840 $ 89,708 $ 84,773 $ (202,199 ) $ 31,154 CONDENSED CONSOLIDATING BALANCE SHEETS DECEMBER 31, 2015 Eaton Corporation plc Eaton Corporation Guarantors Other subsidiaries Consolidating adjustments Total Assets Current assets Cash $ — $ 26 $ 7 $ 235 $ — $ 268 Short-term investments — — 2 175 — 177 Accounts receivable - net — 512 1,030 1,937 — 3,479 Intercompany accounts receivable 1 842 3,888 2,928 (7,659 ) — Inventory — 357 651 1,395 (80 ) 2,323 Prepaid expenses and other current assets — 77 40 229 23 369 Total current assets 1 1,814 5,618 6,899 (7,716 ) 6,616 Property, plant and equipment - net — 930 750 1,885 — 3,565 Other noncurrent assets Goodwill — 1,355 6,264 5,860 — 13,479 Other intangible assets — 182 3,624 2,208 — 6,014 Deferred income taxes — 1,016 — 218 (872 ) 362 Investment in subsidiaries 29,627 13,003 60,139 10,166 (112,935 ) — Intercompany loans receivable — 8,641 1,573 44,835 (55,049 ) — Other assets — 492 122 346 — 960 Total assets $ 29,628 $ 27,433 $ 78,090 $ 72,417 $ (176,572 ) $ 30,996 Liabilities and shareholders’ equity Current liabilities Short-term debt $ — $ 408 $ — $ 18 $ — $ 426 Current portion of long-term debt — 1 240 1 — 242 Accounts payable — 392 260 1,106 — 1,758 Intercompany accounts payable 219 4,009 2,248 1,183 (7,659 ) — Accrued compensation — 77 53 236 — 366 Other current liabilities 1 644 318 875 (5 ) 1,833 Total current liabilities 220 5,531 3,119 3,419 (7,664 ) 4,625 Noncurrent liabilities Long-term debt — 7,053 675 17 1 7,746 Pension liabilities — 639 165 782 — 1,586 Other postretirement benefits liabilities — 245 118 77 — 440 Deferred income taxes — — 815 447 (872 ) 390 Intercompany loans payable 14,222 2,962 36,432 1,433 (55,049 ) — Other noncurrent liabilities — 346 200 432 — 978 Total noncurrent liabilities 14,222 11,245 38,405 3,188 (55,920 ) 11,140 Shareholders’ equity Eaton shareholders' equity 15,186 10,657 36,566 65,773 (112,996 ) 15,186 Noncontrolling interests — — — 37 8 45 Total equity 15,186 10,657 36,566 65,810 (112,988 ) 15,231 Total liabilities and equity $ 29,628 $ 27,433 $ 78,090 $ 72,417 $ (176,572 ) $ 30,996 CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS FOR THE SIX MONTHS ENDED JUNE 30, 2016 Eaton Corporation plc Eaton Corporation Guarantors Other subsidiaries Consolidating adjustments Total Net cash provided by (used in) operating activities $ (156 ) $ 23 $ (298 ) $ 1,547 $ — $ 1,116 Investing activities Capital expenditures for property, plant and equipment — (40 ) (49 ) (157 ) — (246 ) Cash received from (paid for) acquisitions of businesses, net of cash acquired — — 1 — — 1 Sales (purchases) of short-term investments - net — — 2 36 — 38 Investments in affiliates (1,250 ) — (120 ) (1,370 ) 2,740 — Return of investments in affiliates — — 47 — (47 ) — Loans to affiliates — (284 ) (47 ) (4,236 ) 4,567 — Repayments of loans from affiliates — 1,280 — 2,922 (4,202 ) — Other - net — 2 25 (24 ) — 3 Net cash provided by (used in) investing activities (1,250 ) 958 (141 ) (2,829 ) 3,058 (204 ) Financing activities Proceeds from borrowings — 145 — 6 — 151 Payments on borrowings — — (240 ) — — (240 ) Proceeds from borrowings from affiliates 2,203 1,385 782 197 (4,567 ) — Payments on borrowings from affiliates (18 ) (2,493 ) (1,658 ) (33 ) 4,202 — Capital contributions from affiliates — — 1,370 1,370 (2,740 ) — Return of capital to affiliates — — — (47 ) 47 — Other intercompany financing activities — (43 ) 183 (140 ) — — Cash dividends paid (521 ) — — — — (521 ) Exercise of employee stock options 37 — — — — 37 Repurchase of shares (295 ) — — — — (295 ) Excess tax benefit from equity-based compensation — 3 — — — 3 Net cash provided by (used in) financing activities 1,406 (1,003 ) 437 1,353 (3,058 ) (865 ) Effect of currency on cash — — — 8 — 8 Total increase (decrease) in cash — (22 ) (2 ) 79 — 55 Cash at the beginning of the period — 26 7 235 — 268 Cash at the end of the period $ — $ 4 $ 5 $ 314 $ — $ 323 CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS FOR THE SIX MONTHS ENDED JUNE 30, 2015 Eaton Corporation plc Eaton Corporation Guarantors Other subsidiaries Consolidating adjustments Total Net cash provided by (used in) operating activities $ (84 ) $ (272 ) $ 95 $ 917 $ — $ 656 Investing activities Capital expenditures for property, plant and equipment — (47 ) (63 ) (136 ) — (246 ) Cash received from (paid for) acquisitions of businesses, net of cash acquired — — — (38 ) — (38 ) Sales (purchases) of short-term — — — 109 — 109 Investments in affiliates (1,482 ) — (1,176 ) (1,482 ) 4,140 — Loans to affiliates — (307 ) (39 ) (6,027 ) 6,373 — Repayments of loans from affiliates — 306 11 4,720 (5,037 ) — Proceeds from sale of businesses — — — 1 — 1 Other - net — (31 ) 28 (30 ) — (33 ) Net cash provided by (used in) investing activities (1,482 ) (79 ) (1,239 ) (2,883 ) 5,476 (207 ) Financing activities Proceeds from borrowings — 125 — 12 — 137 Payments on borrowings — (101 ) (301 ) (2 ) — (404 ) Proceeds from borrowings from affiliates 2,242 3,775 314 42 (6,373 ) — Payments on borrowings from affiliates (39 ) (3,824 ) (1,160 ) (14 ) 5,037 — Capital contributions from affiliates — 1,176 1,482 1,482 (4,140 ) — Other intercompany financing activities — (959 ) 804 155 — — Cash dividends paid (514 ) — — — — (514 ) Exercise of employee stock options 46 — — — — 46 Repurchase of shares (170 ) — — — — (170 ) Other - net — — — (7 ) — (7 ) Net cash provided by (used in) financing activities 1,565 192 1,139 1,668 (5,476 ) (912 ) Effect of currency on cash — — — (15 ) — (15 ) Total increase (decrease) in cash (1 ) (159 ) (5 ) (313 ) — (478 ) Cash at the beginning of the period 1 173 13 594 — 781 Cash at the end of the period $ — $ 14 $ 8 $ 281 $ — $ 303

BASIS OF PRESENTATION (Policies

BASIS OF PRESENTATION (Policies)	6 Months Ended
	Jun. 30, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Accounting	The accompanying unaudited condensed consolidated financial statements of Eaton Corporation plc (Eaton or the Company) have been prepared in accordance with generally accepted accounting principles for interim financial information, the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by United States generally accepted accounting principles (US GAAP) for complete financial statements. However, in the opinion of management, all adjustments (consisting of normal recurring accruals) have been made that are necessary for a fair presentation of the condensed consolidated financial statements for the interim periods. This Form 10-Q should be read in conjunction with the consolidated financial statements and related notes included in Eaton’s 2015 Form 10-K. The interim period results are not necessarily indicative of the results to be expected for the full year. Management has evaluated subsequent events through the date this Form 10-Q was filed with the Securities and Exchange Commission.
Reclassifications	Certain prior year amounts have been reclassified to conform to the current year presentation.
Recently Issued Accounting Pronouncements	Recently Issued Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update 2016-02, Leases (Topic 842), (ASU 2016-02). This accounting standard requires that a lessee recognize a lease asset and a lease liability on its balance sheet for all leases, including operating leases, with a term greater than 12 months. ASU 2016-02 will require additional disclosures in the notes to the consolidated financial statements and is effective for annual and interim reporting periods beginning after December 15, 2018. Eaton is evaluating the impact of ASU 2016-02 and an estimate of the impact to the consolidated financial statements cannot be made at this time. In May 2014, the FASB issued Accounting Standards Update 2014-09, Revenue from Contracts with Customers (ASU 2014-09). This accounting standard supersedes all existing US GAAP revenue recognition guidance. Under ASU 2014-09, a company will recognize revenue when it transfers the control of promised goods or services to customers in an amount that reflects the consideration which the company expects to collect in exchange for those goods or services. ASU 2014-09 will require additional disclosures in the notes to the consolidated financial statements and is effective for annual and interim reporting periods beginning after December 15, 2016. In August 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers: Deferral of the Effective Date (ASU 2015-14). This accounting standard defers the effective date of ASU 2014-09 for one year and permits early adoption as of the original effective date. Eaton is evaluating the impact of ASU 2014-09 and an estimate of the impact to the consolidated financial statements cannot be made at this time. During the first quarter of 2016 , the Company adopted Accounting Standards Update 2015-03, Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs (ASU 2015-03). ASU 2015-03 requires that debt issuance costs be presented in the balance sheet as a direct deduction from the related debt liability rather than an asset. The Company has applied this standard retrospectively. The adoption of ASU 2015-03 resulted in the reclassification of $33 and $35 within the Company's Condensed Consolidated Balance Sheets as of June 30, 2016 and December 31, 2015, respectively, from Other noncurrent assets to a reduction in Long-term debt.

ACQUISITION INTEGRATION CHARG21

ACQUISITION INTEGRATION CHARGES (Tables)	6 Months Ended
	Jun. 30, 2016
Acquisitions Integration Charges [Abstract]
Acquisition Integration Charges	A summary of these charges follows: Three months ended Six months ended 2016 2015 2016 2015 Electrical Products $ 1 $ 6 $ 1 $ 12 Electrical Systems and Services — 4 1 7 Hydraulics — 1 — 2 Total business segments 1 11 2 21 Corporate — 1 — 2 Total acquisition integration charges before income taxes 1 12 2 23 Income taxes — 4 1 8 Total after income taxes $ 1 $ 8 $ 1 $ 15 Per ordinary share - diluted $ — $ 0.02 $ — $ 0.03

RESTRUCTURING CHARGES (Tables)

RESTRUCTURING CHARGES (Tables)	6 Months Ended
	Jun. 30, 2016
Restructuring and Related Activities [Abstract]
Restructuring Charges by Type	A summary of restructuring charges by type follows: Three months ended Six months ended 2016 2015 2016 2015 Workforce reductions $ 20 $ 3 $ 77 $ 12 Plant closings and other 15 1 21 2 Total $ 35 $ 4 $ 98 $ 14
Restructuring Charges by Segment	A summary of restructuring charges by segment follows: Three months ended Six months ended 2016 2015 2016 2015 Electrical Products $ 9 $ 1 $ 26 $ 1 Electrical Systems & Services 3 — 13 — Hydraulics 18 1 34 9 Aerospace — — 4 — Vehicle 5 2 17 4 Corporate — — 4 — Total $ 35 $ 4 $ 98 $ 14
Restructuring Liability Rollforward	A summary of liabilities related to workforce reductions, plant closings and other associated costs follows: Workforce reductions Plant closings and other Total Balance at December 31, 2014 $ — $ — $ — Liability recognized 112 17 129 Payments (59 ) (3 ) (62 ) Other adjustments 1 (14 ) (13 ) Balance at December 31, 2015 54 — 54 Liability recognized 77 21 98 Payments (55 ) (9 ) (64 ) Other adjustments (1 ) (11 ) (12 ) Balance at June 30, 2016 $ 75 $ 1 $ 76

GOODWILL (Tables)

GOODWILL (Tables)	6 Months Ended
	Jun. 30, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Goodwill	A summary of goodwill follows: Electrical Products Electrical Systems and Services Hydraulics Aerospace Vehicle Total December 31, 2015 $ 6,642 $ 4,279 $ 1,259 $ 956 $ 343 $ 13,479 Additions 1 — — — — 1 Translation (21 ) (5 ) 4 (10 ) 2 (30 ) June 30, 2016 $ 6,622 $ 4,274 $ 1,263 $ 946 $ 345 $ 13,450

RETIRED BENEFIT PLANS (Tables)

RETIRED BENEFIT PLANS (Tables)	6 Months Ended
	Jun. 30, 2016
Compensation and Retirement Disclosure [Abstract]
Retirement Benefits Plans Expense	The components of retirement benefits expense follow: United States pension benefit expense Non-United States pension benefit expense Other postretirement benefits expense Three months ended June 30 2016 2015 2016 2015 2016 2015 Service cost $ 27 $ 30 $ 17 $ 19 $ 1 $ 1 Interest cost 32 39 16 18 5 6 Expected return on plan assets (62 ) (65 ) (24 ) (25 ) (2 ) (1 ) Amortization 23 30 8 10 (2 ) 1 20 34 17 22 2 7 Settlements and curtailments 18 19 — — — — Total expense $ 38 $ 53 $ 17 $ 22 $ 2 $ 7 United States Non-United States Other postretirement Six months ended June 30 2016 2015 2016 2015 2016 2015 Service cost $ 55 $ 61 $ 33 $ 37 $ 2 $ 3 Interest cost 63 78 32 36 9 12 Expected return on plan assets (125 ) (131 ) (48 ) (50 ) (3 ) (2 ) Amortization 46 60 17 20 (4 ) 1 39 68 34 43 4 14 Settlements and curtailments 39 33 — — — — Total expense $ 78 $ 101 $ 34 $ 43 $ 4 $ 14

EQUITY (Tables)

EQUITY (Tables)	6 Months Ended
	Jun. 30, 2016
Stockholders' Equity Note [Abstract]
Changes in Shareholders' equity	The changes in Shareholders’ equity follow: Eaton shareholders’ equity Noncontrolling interests Total equity Balance at December 31, 2015 $ 15,186 $ 45 $ 15,231 Net income 895 — 895 Other comprehensive income 18 — 18 Cash dividends paid (521 ) — (521 ) Issuance of shares under equity-based compensation plans - net 66 — 66 Repurchase of shares (324 ) — (324 ) Change in capital — (1 ) (1 ) Balance at June 30, 2016 $ 15,320 $ 44 $ 15,364
Schedule of Accumulated Other Comprehensive Loss	The changes in Accumulated other comprehensive loss follow: Currency translation and related hedging instruments Pensions and other postretirement benefits Cash flow hedges Total Balance at December 31, 2015 $ (2,492 ) $ (1,374 ) $ 3 $ (3,863 ) Other comprehensive (loss) income before reclassifications (35 ) 22 (33 ) (46 ) Amounts reclassified from Accumulated other comprehensive loss (income) — 65 (1 ) 64 Net current-period Other comprehensive income (loss) (35 ) 87 (34 ) 18 Balance at June 30, 2016 $ (2,527 ) $ (1,287 ) $ (31 ) $ (3,845 )
Reclassification Out of Accumulated Other Comprehensive Loss	The reclassifications out of Accumulated other comprehensive loss follow: Six months ended June 30, 2016 Consolidated statements of income classification Amortization of defined benefit pensions and other postretirement benefits items Actuarial loss and prior service cost $ (98 ) 1 Tax benefit 33 Total, net of tax (65 ) Gains and (losses) on cash flow hedges Currency exchange contracts 1 Cost of products sold Tax expense — Total, net of tax 1 Total reclassifications for the period $ (64 ) 1 These components of Accumulated other comprehensive loss are included in the computation of net periodic benefit cost. See Note 6 for additional information about pension and other postretirement benefits items.
Calculation of Net Income Per Ordinary Share Attributable to Shareholders	A summary of the calculation of net income per share attributable to Eaton ordinary shareholders follows: Three months ended Six months ended (Shares in millions) 2016 2015 2016 2015 Net income attributable to Eaton ordinary shareholders $ 491 $ 535 $ 895 $ 1,001 Weighted-average number of ordinary shares outstanding - diluted 458.3 469.2 459.0 469.6 Less dilutive effect of equity-based compensation 1.3 1.6 1.2 1.9 Weighted-average number of ordinary shares outstanding - basic 457.0 467.6 457.8 467.7 Net income per share attributable to Eaton ordinary shareholders Diluted $ 1.07 $ 1.14 $ 1.95 $ 2.13 Basic 1.08 1.14 1.96 2.14

FAIR VALUE MEASUREMENTS (Tables

FAIR VALUE MEASUREMENTS (Tables)	6 Months Ended
	Jun. 30, 2016
Fair Value Disclosures [Abstract]
Summary of Financial Instruments Recognized at Fair Value and Fair Value Measurement Used	A summary of financial instruments recognized at fair value, and the fair value measurements used, follows: Total Level 1 Level 2 Level 3 June 30, 2016 Cash $ 323 $ 323 $ — $ — Short-term investments 146 146 — — Net derivative contracts 152 — 152 — Long-term debt converted to floating interest rates by interest rate swaps - net (200 ) — (200 ) — December 31, 2015 Cash $ 268 $ 268 $ — $ — Short-term investments 177 177 — — Net derivative contracts 86 — 86 — Long-term debt converted to floating interest rates by interest rate swaps - net (94 ) — (94 ) —

DERIVATIVE FINANCIAL INSTRUME27

DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES (Tables)	6 Months Ended
	Jun. 30, 2016
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative Financial Instruments Recognized in Condensed Consolidated Balance Sheet	The fair value of derivative financial instruments recognized in the Condensed Consolidated Balance Sheets follows: Notional amount Other current assets Other noncurrent assets Other current liabilities Other noncurrent liabilities Type of hedge Term June 30, 2016 Derivatives designated as hedges Fixed-to-floating interest rate swaps $ 3,765 $ 1 $ 199 $ — $ — Fair value 1 month to 18 years Forward starting floating-to-fixed interest rate swaps 400 — — — 19 Cash flow 12 years Currency exchange contracts 859 6 1 21 14 Cash flow 1 to 36 months Total $ 7 $ 200 $ 21 $ 33 Derivatives not designated as hedges Currency exchange contracts $ 3,469 $ 35 $ — $ 38 $ — 1 to 24 months Commodity contracts 50 2 — 1 to 12 months Total $ 37 $ — $ 38 $ — December 31, 2015 Derivatives designated as hedges Fixed-to-floating interest rate swaps $ 3,715 $ — $ 96 $ — $ 2 Fair value 2 to 19 years Forward starting floating-to-fixed interest rate swaps 50 — — — — Cash flow 12 years Currency exchange contracts 724 18 1 8 6 Cash flow 1 to 36 months Commodity contracts 1 — — — — Cash flow 1 to 12 months Total $ 18 $ 97 $ 8 $ 8 Derivatives not designated as hedges Currency exchange contracts $ 4,198 $ 27 $ 40 1 to 12 months Total $ 27 $ 40
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 Three months ended Three months ended 2016 2015 2016 2015 Derivatives designated as cash flow hedges Forward starting floating-to-fixed interest rate swaps $ (10 ) $ — Interest expense - net $ — $ — Currency exchange contracts (10 ) 8 Cost of products sold (2 ) 4 Total $ (20 ) $ 8 $ (2 ) $ 4 Gain (loss) recognized in other comprehensive (loss) income Location of gain (loss) reclassified from Accumulated other comprehensive loss Gain (loss) reclassified from Accumulated other comprehensive loss Six months ended Six months ended 2016 2015 2016 2015 Derivatives designated as cash flow hedges Forward starting floating-to-fixed interest rate swaps $ (19 ) $ — Interest expense - net $ — $ — Currency exchange contracts (32 ) 10 Cost of products sold 1 6 Total $ (51 ) $ 10 $ 1 $ 6
Amounts recognized in Net Income	Amounts recognized in net income follow: Three months ended Six months ended 2016 2015 2016 2015 Derivatives designated as fair value hedges Fixed-to-floating interest rate swaps $ 30 $ (51 ) $ 106 $ (3 ) Related long-term debt converted to floating interest rates by interest rate swaps (30 ) 51 (106 ) 3 $ — $ — $ — $ —

INVENTORY (Tables)

INVENTORY (Tables)	6 Months Ended
	Jun. 30, 2016
Inventory Disclosure [Abstract]
Components of Inventory	The components of inventory follow: June 30, December 31, Raw materials $ 917 $ 885 Work-in-process 430 412 Finished goods 1,075 1,131 Inventory at FIFO 2,422 2,428 Excess of FIFO over LIFO cost (99 ) (105 ) Total inventory $ 2,323 $ 2,323

BUSINESS SEGMENT INFORMATION (T

BUSINESS SEGMENT INFORMATION (Tables)	6 Months Ended
	Jun. 30, 2016
Segment Reporting [Abstract]
Business Segment Information	Three months ended Six months ended 2016 2015 2016 2015 Net sales Electrical Products $ 1,784 $ 1,784 $ 3,464 $ 3,475 Electrical Systems and Services 1,429 1,502 2,771 2,950 Hydraulics 589 643 1,140 1,308 Aerospace 447 454 892 918 Vehicle 831 989 1,626 1,944 Total net sales $ 5,080 $ 5,372 $ 9,893 $ 10,595 Segment operating profit Electrical Products $ 322 $ 276 $ 593 $ 536 Electrical Systems and Services 178 223 337 409 Hydraulics 59 74 100 140 Aerospace 83 77 163 154 Vehicle 137 190 255 354 Total segment operating profit 779 840 1,448 1,593 Corporate Amortization of intangible assets (98 ) (102 ) (198 ) (204 ) Interest expense - net (57 ) (59 ) (114 ) (116 ) Pension and other postretirement benefits expense (13 ) (33 ) (27 ) (61 ) Other corporate expense - net (58 ) (48 ) (114 ) (109 ) Income before income taxes 553 598 995 1,103 Income tax expense 61 63 100 101 Net income 492 535 895 1,002 Less net income for noncontrolling interests (1 ) — — (1 ) Net income attributable to Eaton ordinary shareholders $ 491 $ 535 $ 895 $ 1,001

CONDENSED CONSOLIDATING FINAN30

CONDENSED CONSOLIDATING FINANCIAL STATEMENTS (Tables)	6 Months Ended
	Jun. 30, 2016
Condensed Consolidating Financial Information [Abstract]
Condensed Consolidating Financial Statements	CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME FOR THE THREE MONTHS ENDED JUNE 30, 2016 Eaton Corporation plc Eaton Corporation Guarantors Other subsidiaries Consolidating adjustments Total Net sales $ — $ 1,644 $ 1,640 $ 3,065 $ (1,269 ) $ 5,080 Cost of products sold — 1,263 1,197 2,230 (1,271 ) 3,419 Selling and administrative expense 2 353 192 350 — 897 Research and development expense — 55 46 48 — 149 Interest expense (income) - net — 57 6 (7 ) 1 57 Other expense (income) - net — 12 4 (11 ) — 5 Equity in loss (earnings) of subsidiaries, net of tax (594 ) (155 ) (820 ) (141 ) 1,710 — Intercompany expense (income) - net 101 (46 ) 317 (372 ) — — Income (loss) before income taxes 491 105 698 968 (1,709 ) 553 Income tax expense (benefit) — 13 13 35 — 61 Net income (loss) 491 92 685 933 (1,709 ) 492 Less net loss (income) for noncontrolling interests — — — (2 ) 1 (1 ) Net income (loss) attributable to Eaton ordinary shareholders $ 491 $ 92 $ 685 $ 931 $ (1,708 ) $ 491 Other comprehensive income (loss) $ (255 ) $ (7 ) $ (251 ) $ (334 ) $ 592 $ (255 ) Total comprehensive income (loss) attributable to Eaton ordinary shareholders $ 236 $ 85 $ 434 $ 597 $ (1,116 ) $ 236 CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME FOR THE THREE MONTHS ENDED JUNE 30, 2015 Eaton Corporation plc Eaton Corporation Guarantors Other subsidiaries Consolidating adjustments Total Net sales $ — $ 1,806 $ 1,705 $ 3,248 $ (1,387 ) $ 5,372 Cost of products sold — 1,433 1,273 2,322 (1,353 ) 3,675 Selling and administrative expense 2 368 172 359 — 901 Research and development expense — 66 49 43 — 158 Interest expense (income) - net — 58 5 (2 ) (2 ) 59 Other expense (income) - net — 11 (7 ) (23 ) — (19 ) Equity in loss (earnings) of subsidiaries, net of tax (619 ) (58 ) (802 ) (127 ) 1,606 — Intercompany expense (income) - net 82 (267 ) 481 (296 ) — — Income (loss) before income taxes 535 195 534 972 (1,638 ) 598 Income tax expense (benefit) — 41 (38 ) 75 (15 ) 63 Net income (loss) 535 154 572 897 (1,623 ) 535 Less net loss (income) for noncontrolling interests — — — (1 ) 1 — Net income (loss) attributable to Eaton ordinary shareholders $ 535 $ 154 $ 572 $ 896 $ (1,622 ) $ 535 Other comprehensive income (loss) $ 230 $ 19 $ 235 $ 288 $ (542 ) $ 230 Total comprehensive income (loss) attributable to Eaton ordinary shareholders $ 765 $ 173 $ 807 $ 1,184 $ (2,164 ) $ 765 CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME FOR THE SIX MONTHS ENDED JUNE 30, 2016 Eaton Corporation plc Eaton Corporation Guarantors Other subsidiaries Consolidating adjustments Total Net sales $ — $ 3,182 $ 3,210 $ 5,943 $ (2,442 ) $ 9,893 Cost of products sold — 2,459 2,392 4,305 (2,446 ) 6,710 Selling and administrative expense 4 718 386 681 — 1,789 Research and development expense — 117 95 86 — 298 Interest expense (income) - net — 110 9 (10 ) 5 114 Other expense (income) - net — 16 (3 ) (26 ) — (13 ) Equity in loss (earnings) of subsidiaries, net of tax (1,098 ) (325 ) (1,489 ) (234 ) 3,146 — Intercompany expense (income) - net 199 (88 ) 577 (688 ) — — Income (loss) before income taxes 895 175 1,243 1,829 (3,147 ) 995 Income tax expense (benefit) — 20 14 66 — 100 Net income (loss) 895 155 1,229 1,763 (3,147 ) 895 Less net loss (income) for noncontrolling interests — — — (2 ) 2 — Net income (loss) attributable to Eaton ordinary shareholders $ 895 $ 155 $ 1,229 $ 1,761 $ (3,145 ) $ 895 Other comprehensive income (loss) $ 18 $ 33 $ 25 $ (36 ) $ (22 ) $ 18 Total comprehensive income (loss) attributable to Eaton ordinary shareholders $ 913 $ 188 $ 1,254 $ 1,725 $ (3,167 ) $ 913 CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME FOR THE SIX MONTHS ENDED JUNE 30, 2015 Eaton Corporation plc Eaton Corporation Guarantors Other subsidiaries Consolidating adjustments Total Net sales $ — $ 3,508 $ 3,401 $ 6,364 $ (2,678 ) $ 10,595 Cost of products sold — 2,743 2,568 4,599 (2,642 ) 7,268 Selling and administrative expense 4 745 348 719 — 1,816 Research and development expense — 137 94 85 — 316 Interest expense (income) - net — 112 11 (7 ) — 116 Other expense (income) - net — 6 (8 ) (22 ) — (24 ) Equity in loss (earnings) of subsidiaries, net of tax (1,164 ) (267 ) (1,515 ) (253 ) 3,199 — Intercompany expense (income) - net 159 (308 ) 752 (603 ) — — Income (loss) before income taxes 1,001 340 1,151 1,846 (3,235 ) 1,103 Income tax expense (benefit) — 19 (17 ) 116 (17 ) 101 Net income (loss) 1,001 321 1,168 1,730 (3,218 ) 1,002 Less net loss (income) for noncontrolling interests — — — (2 ) 1 (1 ) Net income (loss) attributable to Eaton ordinary shareholders $ 1,001 $ 321 $ 1,168 $ 1,728 $ (3,217 ) $ 1,001 Other comprehensive income (loss) $ (404 ) $ 63 $ (385 ) $ (465 ) $ 787 $ (404 ) Total comprehensive income (loss) attributable to Eaton $ 597 $ 384 $ 783 $ 1,263 $ (2,430 ) $ 597 CONDENSED CONSOLIDATING BALANCE SHEETS JUNE 30, 2016 Eaton Corporation plc Eaton Corporation Guarantors Other subsidiaries Consolidating adjustments Total Assets Current assets Cash $ — $ 4 $ 5 $ 314 $ — $ 323 Short-term investments — — 1 145 — 146 Accounts receivable - net — 506 1,100 2,022 — 3,628 Intercompany accounts receivable 10 710 4,143 3,378 (8,241 ) — Inventory — 370 637 1,392 (76 ) 2,323 Prepaid expenses and other current assets — 112 45 224 25 406 Total current assets 10 1,702 5,931 7,475 (8,292 ) 6,826 Property, plant and equipment - net — 885 720 1,946 — 3,551 Other noncurrent assets Goodwill — 1,355 6,264 5,831 — 13,450 Other intangible assets — 175 3,528 2,092 — 5,795 Deferred income taxes — 999 — 236 (822 ) 413 Investment in subsidiaries 32,022 13,353 71,629 11,997 (129,001 ) — Intercompany loans receivable — 7,751 1,509 54,824 (64,084 ) — Other assets — 620 127 372 — 1,119 Total assets $ 32,032 $ 26,840 $ 89,708 $ 84,773 $ (202,199 ) $ 31,154 Liabilities and shareholders’ equity Current liabilities Short-term debt $ — $ 532 $ — $ 25 $ — $ 557 Current portion of long-term debt — 251 — 1 — 252 Accounts payable — 427 322 1,053 — 1,802 Intercompany accounts payable 157 4,042 2,917 1,125 (8,241 ) — Accrued compensation — 63 39 214 — 316 Other current liabilities 30 584 336 940 (1 ) 1,889 Total current liabilities 187 5,899 3,614 3,358 (8,242 ) 4,816 Noncurrent liabilities Long-term debt — 6,915 667 17 6 7,605 Pension liabilities — 618 167 769 — 1,554 Other postretirement benefits liabilities — 239 116 78 — 433 Deferred income taxes — — 755 432 (822 ) 365 Intercompany loans payable 16,525 1,924 44,729 906 (64,084 ) — Other noncurrent liabilities — 371 211 435 — 1,017 Total noncurrent liabilities 16,525 10,067 46,645 2,637 (64,900 ) 10,974 Shareholders’ equity Eaton shareholders' equity 15,320 10,874 39,449 78,740 (129,063 ) 15,320 Noncontrolling interests — — — 38 6 44 Total equity 15,320 10,874 39,449 78,778 (129,057 ) 15,364 Total liabilities and equity $ 32,032 $ 26,840 $ 89,708 $ 84,773 $ (202,199 ) $ 31,154 CONDENSED CONSOLIDATING BALANCE SHEETS DECEMBER 31, 2015 Eaton Corporation plc Eaton Corporation Guarantors Other subsidiaries Consolidating adjustments Total Assets Current assets Cash $ — $ 26 $ 7 $ 235 $ — $ 268 Short-term investments — — 2 175 — 177 Accounts receivable - net — 512 1,030 1,937 — 3,479 Intercompany accounts receivable 1 842 3,888 2,928 (7,659 ) — Inventory — 357 651 1,395 (80 ) 2,323 Prepaid expenses and other current assets — 77 40 229 23 369 Total current assets 1 1,814 5,618 6,899 (7,716 ) 6,616 Property, plant and equipment - net — 930 750 1,885 — 3,565 Other noncurrent assets Goodwill — 1,355 6,264 5,860 — 13,479 Other intangible assets — 182 3,624 2,208 — 6,014 Deferred income taxes — 1,016 — 218 (872 ) 362 Investment in subsidiaries 29,627 13,003 60,139 10,166 (112,935 ) — Intercompany loans receivable — 8,641 1,573 44,835 (55,049 ) — Other assets — 492 122 346 — 960 Total assets $ 29,628 $ 27,433 $ 78,090 $ 72,417 $ (176,572 ) $ 30,996 Liabilities and shareholders’ equity Current liabilities Short-term debt $ — $ 408 $ — $ 18 $ — $ 426 Current portion of long-term debt — 1 240 1 — 242 Accounts payable — 392 260 1,106 — 1,758 Intercompany accounts payable 219 4,009 2,248 1,183 (7,659 ) — Accrued compensation — 77 53 236 — 366 Other current liabilities 1 644 318 875 (5 ) 1,833 Total current liabilities 220 5,531 3,119 3,419 (7,664 ) 4,625 Noncurrent liabilities Long-term debt — 7,053 675 17 1 7,746 Pension liabilities — 639 165 782 — 1,586 Other postretirement benefits liabilities — 245 118 77 — 440 Deferred income taxes — — 815 447 (872 ) 390 Intercompany loans payable 14,222 2,962 36,432 1,433 (55,049 ) — Other noncurrent liabilities — 346 200 432 — 978 Total noncurrent liabilities 14,222 11,245 38,405 3,188 (55,920 ) 11,140 Shareholders’ equity Eaton shareholders' equity 15,186 10,657 36,566 65,773 (112,996 ) 15,186 Noncontrolling interests — — — 37 8 45 Total equity 15,186 10,657 36,566 65,810 (112,988 ) 15,231 Total liabilities and equity $ 29,628 $ 27,433 $ 78,090 $ 72,417 $ (176,572 ) $ 30,996 CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS FOR THE SIX MONTHS ENDED JUNE 30, 2016 Eaton Corporation plc Eaton Corporation Guarantors Other subsidiaries Consolidating adjustments Total Net cash provided by (used in) operating activities $ (156 ) $ 23 $ (298 ) $ 1,547 $ — $ 1,116 Investing activities Capital expenditures for property, plant and equipment — (40 ) (49 ) (157 ) — (246 ) Cash received from (paid for) acquisitions of businesses, net of cash acquired — — 1 — — 1 Sales (purchases) of short-term investments - net — — 2 36 — 38 Investments in affiliates (1,250 ) — (120 ) (1,370 ) 2,740 — Return of investments in affiliates — — 47 — (47 ) — Loans to affiliates — (284 ) (47 ) (4,236 ) 4,567 — Repayments of loans from affiliates — 1,280 — 2,922 (4,202 ) — Other - net — 2 25 (24 ) — 3 Net cash provided by (used in) investing activities (1,250 ) 958 (141 ) (2,829 ) 3,058 (204 ) Financing activities Proceeds from borrowings — 145 — 6 — 151 Payments on borrowings — — (240 ) — — (240 ) Proceeds from borrowings from affiliates 2,203 1,385 782 197 (4,567 ) — Payments on borrowings from affiliates (18 ) (2,493 ) (1,658 ) (33 ) 4,202 — Capital contributions from affiliates — — 1,370 1,370 (2,740 ) — Return of capital to affiliates — — — (47 ) 47 — Other intercompany financing activities — (43 ) 183 (140 ) — — Cash dividends paid (521 ) — — — — (521 ) Exercise of employee stock options 37 — — — — 37 Repurchase of shares (295 ) — — — — (295 ) Excess tax benefit from equity-based compensation — 3 — — — 3 Net cash provided by (used in) financing activities 1,406 (1,003 ) 437 1,353 (3,058 ) (865 ) Effect of currency on cash — — — 8 — 8 Total increase (decrease) in cash — (22 ) (2 ) 79 — 55 Cash at the beginning of the period — 26 7 235 — 268 Cash at the end of the period $ — $ 4 $ 5 $ 314 $ — $ 323 CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS FOR THE SIX MONTHS ENDED JUNE 30, 2015 Eaton Corporation plc Eaton Corporation Guarantors Other subsidiaries Consolidating adjustments Total Net cash provided by (used in) operating activities $ (84 ) $ (272 ) $ 95 $ 917 $ — $ 656 Investing activities Capital expenditures for property, plant and equipment — (47 ) (63 ) (136 ) — (246 ) Cash received from (paid for) acquisitions of businesses, net of cash acquired — — — (38 ) — (38 ) Sales (purchases) of short-term — — — 109 — 109 Investments in affiliates (1,482 ) — (1,176 ) (1,482 ) 4,140 — Loans to affiliates — (307 ) (39 ) (6,027 ) 6,373 — Repayments of loans from affiliates — 306 11 4,720 (5,037 ) — Proceeds from sale of businesses — — — 1 — 1 Other - net — (31 ) 28 (30 ) — (33 ) Net cash provided by (used in) investing activities (1,482 ) (79 ) (1,239 ) (2,883 ) 5,476 (207 ) Financing activities Proceeds from borrowings — 125 — 12 — 137 Payments on borrowings — (101 ) (301 ) (2 ) — (404 ) Proceeds from borrowings from affiliates 2,242 3,775 314 42 (6,373 ) — Payments on borrowings from affiliates (39 ) (3,824 ) (1,160 ) (14 ) 5,037 — Capital contributions from affiliates — 1,176 1,482 1,482 (4,140 ) — Other intercompany financing activities — (959 ) 804 155 — — Cash dividends paid (514 ) — — — — (514 ) Exercise of employee stock options 46 — — — — 46 Repurchase of shares (170 ) — — — — (170 ) Other - net — — — (7 ) — (7 ) Net cash provided by (used in) financing activities 1,565 192 1,139 1,668 (5,476 ) (912 ) Effect of currency on cash — — — (15 ) — (15 ) Total increase (decrease) in cash (1 ) (159 ) (5 ) (313 ) — (478 ) Cash at the beginning of the period 1 173 13 594 — 781 Cash at the end of the period $ — $ 14 $ 8 $ 281 $ — $ 303

BASIS OF PRESENTATION (Details)

BASIS OF PRESENTATION (Details) - USD ($) $ in Millions	Jun. 30, 2016	Dec. 31, 2015
Debt [Member]
Reclassification of Debt Issuance Costs [Line Items]
Reclassification of debt issuance costs	$ 33	$ 35

ACQUISITIONS OF BUSINESSES (Det

ACQUISITIONS OF BUSINESSES (Details) - USD ($) $ in Millions	12 Months Ended
	Sep. 30, 2015	Dec. 31, 2014
Electrical Products [Member] | Ephesus Lighting, Inc. [Member]
Business Acquisition [Line Items]
Revenue Reported by acquired entity for last annual period	$ 23
Electrical Systems and Services [Member] | Oxalis Group Ltd. [Member]
Business Acquisition [Line Items]
Revenue Reported by acquired entity for last annual period		$ 9

ACQUISITION AND INTEGRATION CHA

ACQUISITION AND INTEGRATION CHARGES (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Acquisition integration charges [Line Items]
Acquisition integration charges	$ 1	$ 12	$ 2	$ 23
Income taxes	0	4	1	8
Total after income taxes	$ 1	$ 8	$ 1	$ 15
Per ordinary share - diluted (dollars per share)	$ 0	$ 0.02	$ 0	$ 0.03
Electrical Products [Member]
Acquisition integration charges [Line Items]
Acquisition integration charges	$ 1	$ 6	$ 1	$ 12
Electrical Systems and Services [Member]
Acquisition integration charges [Line Items]
Acquisition integration charges	0	4	1	7
Hydraulics [Member]
Acquisition integration charges [Line Items]
Acquisition integration charges	0	1	0	2
Total business segments [Member]
Acquisition integration charges [Line Items]
Acquisition integration charges	1	11	2	21
Corporate [Member]
Acquisition integration charges [Line Items]
Acquisition integration charges	$ 0	$ 1	$ 0	$ 2

RESTRUCTURING CHARGES - Narrati

RESTRUCTURING CHARGES - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015	Dec. 31, 2017	Dec. 31, 2016
Restructuring Cost and Reserve [Line Items]
Restructuring charges	$ 35	$ 4	$ 98	$ 14	$ 129
Employee Severance [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring charges			$ 77		$ 112
Scenario, Forecast [Member] | Employee Severance [Member]
Restructuring Cost and Reserve [Line Items]
Charges associated with restructuring activities						$ 130	$ 145

RESTRUCTURING CHARGES - Summary

RESTRUCTURING CHARGES - Summary of Restructuring Charges by Type (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Restructuring and Related Activities [Abstract]
Workforce reductions	$ 20	$ 3	$ 77	$ 12
Plant closings and other	15	1	21	2
Total	$ 35	$ 4	$ 98	$ 14	$ 129

RESTRUCTURING CHARGES - Summa36

RESTRUCTURING CHARGES - Summary of Restructuring Charges by Segment (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Restructuring Cost and Reserve [Line Items]
Restructuring charges	$ 35	$ 4	$ 98	$ 14	$ 129
Electrical Products [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring charges	9	1	26	1
Electrical Systems and Services [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring charges	3	0	13	0
Hydraulics [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring charges	18	1	34	9
Aerospace [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring charges	0	0	4	0
Vehicle [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring charges	5	2	17	4
Corporate, Non-Segment [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring charges	$ 0	$ 0	$ 4	$ 0

RESTRUCTURING CHARGES - Restruc

RESTRUCTURING CHARGES - Restructuring Roll Forward (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Restructuring Reserve [Roll Forward]
Beginning balance			$ 54	$ 0	$ 0
Liability recognized	$ 35	$ 4	98	14	129
Payments			(64)		(62)
Other adjustments			(12)		(13)
Ending balance	76		76		54
Workforce reductions [Member]
Restructuring Reserve [Roll Forward]
Beginning balance			54	0	0
Liability recognized			77		112
Payments			(55)		(59)
Other adjustments			(1)		1
Ending balance	75		75		54
Plant closings and other [Member]
Restructuring Reserve [Roll Forward]
Beginning balance			0	$ 0	0
Liability recognized			21		17
Payments			(9)		(3)
Other adjustments			(11)		(14)
Ending balance	$ 1		$ 1		$ 0

GOODWILL (Details)

GOODWILL (Details) $ in Millions	6 Months Ended
	Jun. 30, 2016USD ($)
Goodwill [Roll Forward]
Beginning balance	$ 13,479
Additions	1
Translation	(30)
Ending balance	13,450
Electrical Products [Member]
Goodwill [Roll Forward]
Beginning balance	6,642
Additions	1
Translation	(21)
Ending balance	6,622
Electrical Systems and Services [Member]
Goodwill [Roll Forward]
Beginning balance	4,279
Additions	0
Translation	(5)
Ending balance	4,274
Hydraulics [Member]
Goodwill [Roll Forward]
Beginning balance	1,259
Additions	0
Translation	4
Ending balance	1,263
Aerospace [Member]
Goodwill [Roll Forward]
Beginning balance	956
Additions	0
Translation	(10)
Ending balance	946
Vehicle [Member]
Goodwill [Roll Forward]
Beginning balance	343
Additions	0
Translation	2
Ending balance	$ 345

RETIRED BENEFIT PLANS (Details)

RETIRED BENEFIT PLANS (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
United States pension benefit expense [Member]
Retirement benefits plans expense
Service cost	$ 27	$ 30	$ 55	$ 61
Interest cost	32	39	63	78
Expected return on plan assets	(62)	(65)	(125)	(131)
Amortization	23	30	46	60
Total	20	34	39	68
Settlements and curtailments	18	19	39	33
Total expense	38	53	78	101
Non-United States pension benefit expense [Member]
Retirement benefits plans expense
Service cost	17	19	33	37
Interest cost	16	18	32	36
Expected return on plan assets	(24)	(25)	(48)	(50)
Amortization	8	10	17	20
Total	17	22	34	43
Settlements and curtailments	0	0	0	0
Total expense	17	22	34	43
Other postretirement benefits expense [Member]
Retirement benefits plans expense
Service cost	1	1	2	3
Interest cost	5	6	9	12
Expected return on plan assets	(2)	(1)	(3)	(2)
Amortization	(2)	1	(4)	1
Total	2	7	4	14
Settlements and curtailments	0	0	0	0
Total expense	$ 2	$ 7	$ 4	$ 14

LEGAL CONTINGENCIES (Details)

LEGAL CONTINGENCIES (Details) - Jun. 30, 2016 BRL in Millions, $ in Millions	BRL	USD ($)
Raysul [Member]
Loss Contingencies [Line Items]
Loss contingency accrual	BRL 100	$ 31

INCOME TAXES (Details)

INCOME TAXES (Details)	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Income Tax Disclosure [Abstract]
Effective tax rate	11.00%	11.00%	10.00%	9.00%

EQUITY - Changes in Shareholder

EQUITY - Changes in Shareholders's Equity (Details) - USD ($) shares in Millions, $ in Millions	3 Months Ended				6 Months Ended
	Jun. 30, 2016	Mar. 31, 2016	Jun. 30, 2015	Mar. 31, 2015	Jun. 30, 2016	Jun. 30, 2015
Changes in Shareholders' equity
Beginning balance		$ 15,231			$ 15,231
Net income	$ 492		$ 535		895	$ 1,002
Other comprehensive income	(255)		$ 230		18	$ (404)
Cash dividends paid					(521)
Issuance of shares under equity-based compensation plans - net					66
Repurchase of shares					(324)
Change in capital					1
Ending balance	15,364				15,364
Parent [Member]
Changes in Shareholders' equity
Beginning balance		15,186			15,186
Net income					895
Other comprehensive income					18
Cash dividends paid					(521)
Issuance of shares under equity-based compensation plans - net					66
Repurchase of shares					(324)
Change in capital					0
Ending balance	15,320				15,320
Noncontrolling Interest [Member]
Changes in Shareholders' equity
Beginning balance		$ 45			45
Net income					0
Other comprehensive income					0
Cash dividends paid					0
Issuance of shares under equity-based compensation plans - net					0
Repurchase of shares					0
Change in capital					1
Ending balance	$ 44				$ 44
2013 Program [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Number of shares authorized to be repurchased (in shares)	40				40
Ordinary shares purchased (in shares)		1.5		2.4
Changes in Shareholders' equity
Repurchase of shares		$ (82)		$ (170)
2016 Program [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Ordinary shares purchased (in shares)	3.7	0.3
Amount of shares repurchased (up to)	$ 2,500				$ 2,500
Changes in Shareholders' equity
Repurchase of shares	$ (224)	$ (18)

EQUITY - Changes in Accumulated

EQUITY - Changes in Accumulated Other Comprehensive (Loss) Income (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Amounts reclassified from Accumulated other comprehensive loss (income)			$ 64
Net current-period Other comprehensive income (loss)	$ (255)	$ 230	18	$ (404)
Currency translation and related hedging instruments [Member]
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance			(2,492)
Other comprehensive (loss) income before reclassifications			(35)
Amounts reclassified from Accumulated other comprehensive loss (income)			0
Net current-period Other comprehensive income (loss)			(35)
Ending balance	(2,527)		(2,527)
Pensions and other postretirement benefits [Member]
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance			(1,374)
Other comprehensive (loss) income before reclassifications			22
Amounts reclassified from Accumulated other comprehensive loss (income)			65
Net current-period Other comprehensive income (loss)			87
Ending balance	(1,287)		(1,287)
Cash flow hedges [Member]
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance			3
Other comprehensive (loss) income before reclassifications			(33)
Amounts reclassified from Accumulated other comprehensive loss (income)			(1)
Net current-period Other comprehensive income (loss)			(34)
Ending balance	(31)		(31)
Total AOCI Attributable to Parent [Member]
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance			(3,863)
Other comprehensive (loss) income before reclassifications			(46)
Amounts reclassified from Accumulated other comprehensive loss (income)			64
Net current-period Other comprehensive income (loss)			18
Ending balance	$ (3,845)		$ (3,845)

EQUITY - Reclassifications Out

EQUITY - Reclassifications Out of Accumulated Other Comprehensive Loss (Details) $ in Millions	6 Months Ended
	Jun. 30, 2016USD ($)
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Actuarial loss and prior service cost	$ (98)	[1]
Tax benefit	33
Total, net of tax	(65)
Tax expense	0
Total, net of tax	1
Total reclassifications for the period	(64)
Cost of products sold [Member] | Currency exchange contracts [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Currency exchange contracts	$ 1
[1]	These components of Accumulated other comprehensive loss are included in the computation of net periodic benefit cost. See Note 6 for additional information about pension and other postretirement benefits items.

EQUITY - Calculation of Net Inc

EQUITY - Calculation of Net Income per Ordinary Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Calculation of net income per ordinary share attributable to ordinary shareholders
Net income attributable to Eaton ordinary shareholders	$ 491	$ 535	$ 895	$ 1,001
Weighted-average number of ordinary shares outstanding - diluted (shares)	458.3	469.2	459	469.6
Less dilutive effect of equity-based compensation (shares)	1.3	1.6	1.2	1.9
Weighted-average number of ordinary shares outstanding - basic (shares)	457	467.6	457.8	467.7
Net income per share attributable to Eaton ordinary shareholders
Diluted (usd per share)	$ 1.07	$ 1.14	$ 1.95	$ 2.13
Basic (usd per share)	$ 1.08	$ 1.14	$ 1.96	$ 2.14
Stock options excluded from calculation of diluted net income per ordinary share (shares)	1.5	1.3	1.9	1.1

FAIR VALUE MEASUREMENTS - Summa

FAIR VALUE MEASUREMENTS - Summary of Financial Instruments at Fair Value (Details) - USD ($) $ in Millions	Jun. 30, 2016	Dec. 31, 2015	Jun. 30, 2015	Dec. 31, 2014
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items]
Cash	$ 323	$ 268	$ 303	$ 781
Short-term investments	146	177
Net derivative contracts	152	86
Long-term debt converted to floating interest rates by interest rate swaps - net	(200)	(94)
Level 1 [Member]
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items]
Cash	323	268
Short-term investments	146	177
Net derivative contracts	0	0
Long-term debt converted to floating interest rates by interest rate swaps - net	0	0
Level 2 [Member]
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items]
Cash	0	0
Short-term investments	0	0
Net derivative contracts	152	86
Long-term debt converted to floating interest rates by interest rate swaps - net	(200)	(94)
Level 3 [Member]
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items]
Cash	0	0
Short-term investments	0	0
Net derivative contracts	0	0
Long-term debt converted to floating interest rates by interest rate swaps - net	$ 0	$ 0

FAIR VALUE MEASUREMENTS - Other

FAIR VALUE MEASUREMENTS - Other Fair Value Measurements (Details) - USD ($) $ in Millions	Jun. 30, 2016	Dec. 31, 2015
Other Fair Value Measurements [Line Items]
Carrying value of long-term debt and current portion of long-term debt	$ 7,857	$ 7,988
Level 2 [Member]
Other Fair Value Measurements [Line Items]
Fair value of long-term debt and current portion of long-term debt	$ 8,506	$ 8,231

DERIVATIVE FINANCIAL INSTRUME48

DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES - Derivative Financial Instrument Recognized in the Consolidated Balance sheet (Details) - USD ($) $ in Millions	6 Months Ended	12 Months Ended
	Jun. 30, 2016	Dec. 31, 2015
Derivatives not designated as hedges
Debt denominated in foreign currency designated as non-derivative net investment hedging instrument	$ 97	$ 83
Percentage of intercompany balance sheet exposure	100.00%
Other current assets [Member]
Derivatives designated as hedges
Derivative asset designated as hedging instrument	$ 7	18
Derivatives not designated as hedges
Derivative instruments not designated as hedging instruments, asset, at fair value	37	27
Other noncurrent assets [Member]
Derivatives designated as hedges
Derivative asset designated as hedging instrument	200	97
Derivatives not designated as hedges
Derivative instruments not designated as hedging instruments, asset, at fair value	0
Other current liabilities [Member]
Derivatives designated as hedges
Derivative liability designated as hedging instrument	21	8
Derivatives not designated as hedges
Derivative instruments not designated as hedging instruments, liability, at fair value	38	40
Other noncurrent liabilities [Member]
Derivatives designated as hedges
Derivative liability designated as hedging instrument	33	8
Derivatives not designated as hedges
Derivative instruments not designated as hedging instruments, liability, at fair value	0
Currency exchange contracts [Member] | Other current assets [Member]
Derivatives not designated as hedges
Derivative instruments not designated as hedging instruments, asset, at fair value	35	27
Currency exchange contracts [Member] | Other noncurrent assets [Member]
Derivatives not designated as hedges
Derivative instruments not designated as hedging instruments, asset, at fair value	0
Currency exchange contracts [Member] | Other current liabilities [Member]
Derivatives not designated as hedges
Derivative instruments not designated as hedging instruments, liability, at fair value	38	40
Currency exchange contracts [Member] | Other noncurrent liabilities [Member]
Derivatives not designated as hedges
Derivative instruments not designated as hedging instruments, liability, at fair value	0
Commodity contracts [Member] | Other current assets [Member]
Derivatives not designated as hedges
Derivative instruments not designated as hedging instruments, asset, at fair value	2
Commodity contracts [Member] | Other current liabilities [Member]
Derivatives not designated as hedges
Derivative instruments not designated as hedging instruments, liability, at fair value	0
Derivatives designated as hedges [Member] | Fair value hedging [Member] | Fixed-to-floating interest rate swaps [Member]
Derivatives designated as hedges
Notional amount	3,765	3,715
Derivatives designated as hedges [Member] | Fair value hedging [Member] | Fixed-to-floating interest rate swaps [Member] | Other current assets [Member]
Derivatives designated as hedges
Derivative asset designated as hedging instrument	1	0
Derivatives designated as hedges [Member] | Fair value hedging [Member] | Fixed-to-floating interest rate swaps [Member] | Other noncurrent assets [Member]
Derivatives designated as hedges
Derivative asset designated as hedging instrument	199	96
Derivatives designated as hedges [Member] | Fair value hedging [Member] | Fixed-to-floating interest rate swaps [Member] | Other current liabilities [Member]
Derivatives designated as hedges
Derivative liability designated as hedging instrument	0	0
Derivatives designated as hedges [Member] | Fair value hedging [Member] | Fixed-to-floating interest rate swaps [Member] | Other noncurrent liabilities [Member]
Derivatives designated as hedges
Derivative liability designated as hedging instrument	0	2
Derivatives designated as hedges [Member] | Cash Flow Hedging [Member] | Forward Starting Floating-to-Fixed Interest Rate Swap [Member]
Derivatives designated as hedges
Notional amount	400	50
Derivatives designated as hedges [Member] | Cash Flow Hedging [Member] | Forward Starting Floating-to-Fixed Interest Rate Swap [Member] | Other current assets [Member]
Derivatives designated as hedges
Derivative asset designated as hedging instrument	0	0
Derivatives designated as hedges [Member] | Cash Flow Hedging [Member] | Forward Starting Floating-to-Fixed Interest Rate Swap [Member] | Other noncurrent assets [Member]
Derivatives designated as hedges
Derivative asset designated as hedging instrument	0	0
Derivatives designated as hedges [Member] | Cash Flow Hedging [Member] | Forward Starting Floating-to-Fixed Interest Rate Swap [Member] | Other current liabilities [Member]
Derivatives designated as hedges
Derivative liability designated as hedging instrument	0	0
Derivatives designated as hedges [Member] | Cash Flow Hedging [Member] | Forward Starting Floating-to-Fixed Interest Rate Swap [Member] | Other noncurrent liabilities [Member]
Derivatives designated as hedges
Derivative liability designated as hedging instrument	19	0
Derivatives designated as hedges [Member] | Cash Flow Hedging [Member] | Currency exchange contracts [Member]
Derivatives designated as hedges
Notional amount	859	724
Derivatives designated as hedges [Member] | Cash Flow Hedging [Member] | Currency exchange contracts [Member] | Other current assets [Member]
Derivatives designated as hedges
Derivative asset designated as hedging instrument	6	18
Derivatives designated as hedges [Member] | Cash Flow Hedging [Member] | Currency exchange contracts [Member] | Other noncurrent assets [Member]
Derivatives designated as hedges
Derivative asset designated as hedging instrument	1	1
Derivatives designated as hedges [Member] | Cash Flow Hedging [Member] | Currency exchange contracts [Member] | Other current liabilities [Member]
Derivatives designated as hedges
Derivative liability designated as hedging instrument	21	8
Derivatives designated as hedges [Member] | Cash Flow Hedging [Member] | Currency exchange contracts [Member] | Other noncurrent liabilities [Member]
Derivatives designated as hedges
Derivative liability designated as hedging instrument	14	6
Derivatives designated as hedges [Member] | Cash Flow Hedging [Member] | Commodity contracts [Member]
Derivatives designated as hedges
Notional amount		1
Derivatives designated as hedges [Member] | Cash Flow Hedging [Member] | Commodity contracts [Member] | Other current assets [Member]
Derivatives designated as hedges
Derivative asset designated as hedging instrument		0
Derivatives designated as hedges [Member] | Cash Flow Hedging [Member] | Commodity contracts [Member] | Other noncurrent assets [Member]
Derivatives designated as hedges
Derivative asset designated as hedging instrument		0
Derivatives designated as hedges [Member] | Cash Flow Hedging [Member] | Commodity contracts [Member] | Other current liabilities [Member]
Derivatives designated as hedges
Derivative liability designated as hedging instrument		0
Derivatives designated as hedges [Member] | Cash Flow Hedging [Member] | Commodity contracts [Member] | Other noncurrent liabilities [Member]
Derivatives designated as hedges
Derivative liability designated as hedging instrument		0
Derivatives not designated as hedges [Member] | Currency exchange contracts [Member]
Derivatives designated as hedges
Notional amount	3,469	$ 4,198
Derivatives not designated as hedges [Member] | Commodity contracts [Member]
Derivatives designated as hedges
Notional amount	$ 50
Minimum [Member] | Derivatives designated as hedges [Member] | Fair value hedging [Member] | Forward Starting Floating-to-Fixed Interest Rate Swap [Member]
Derivatives, Fair Value [Line Items]
Derivative, term of contract	12 years	12 years
Minimum [Member] | Derivatives designated as hedges [Member] | Fair value hedging [Member] | Fixed-to-floating interest rate swaps [Member]
Derivatives, Fair Value [Line Items]
Derivative, term of contract	1 month	2 years
Minimum [Member] | Derivatives designated as hedges [Member] | Cash Flow Hedging [Member] | Currency exchange contracts [Member]
Derivatives, Fair Value [Line Items]
Derivative, term of contract	1 month	1 month
Minimum [Member] | Derivatives designated as hedges [Member] | Cash Flow Hedging [Member] | Commodity contracts [Member]
Derivatives, Fair Value [Line Items]
Derivative, term of contract	1 month	1 month
Minimum [Member] | Derivatives not designated as hedges [Member] | Currency exchange contracts [Member]
Derivatives, Fair Value [Line Items]
Derivative, term of contract	1 month	1 month
Minimum [Member] | Derivatives not designated as hedges [Member] | Commodity contracts [Member]
Derivatives, Fair Value [Line Items]
Derivative, term of contract	1 month
Maximum [Member] | Derivatives designated as hedges [Member] | Fair value hedging [Member] | Forward Starting Floating-to-Fixed Interest Rate Swap [Member]
Derivatives, Fair Value [Line Items]
Derivative, term of contract	12 years	12 years
Maximum [Member] | Derivatives designated as hedges [Member] | Fair value hedging [Member] | Fixed-to-floating interest rate swaps [Member]
Derivatives, Fair Value [Line Items]
Derivative, term of contract	18 years	19 years
Maximum [Member] | Derivatives designated as hedges [Member] | Cash Flow Hedging [Member] | Currency exchange contracts [Member]
Derivatives, Fair Value [Line Items]
Derivative, term of contract	36 months	36 months
Maximum [Member] | Derivatives designated as hedges [Member] | Cash Flow Hedging [Member] | Commodity contracts [Member]
Derivatives, Fair Value [Line Items]
Derivative, term of contract	12 months	12 months
Maximum [Member] | Derivatives not designated as hedges [Member] | Currency exchange contracts [Member]
Derivatives, Fair Value [Line Items]
Derivative, term of contract	24 months	12 months
Maximum [Member] | Derivatives not designated as hedges [Member] | Commodity contracts [Member]
Derivatives, Fair Value [Line Items]
Derivative, term of contract	12 months

DERIVATIVE FINANCIAL INSTRUME49

DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES - Amounts Recognized in Accumulated Other Comprehensive Income (Details) - Cash flow hedges [Member] - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Interest expense - net [Member] | Forward Starting Floating-to-Fixed Interest Rate Swap [Domain]
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) recognized in other comprehensive (loss) income	$ (10)	$ 0	$ (19)	$ 0
Gain (loss) reclassified from Accumulated other comprehensive loss	0	0	0	0
Cost of products sold [Member] | Currency exchange contracts [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) recognized in other comprehensive (loss) income	(10)	8	(32)	10
Gain (loss) reclassified from Accumulated other comprehensive loss	(2)	4	1	6
Cost of products sold or Interest expense - net [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) recognized in other comprehensive (loss) income	(20)	8	(51)	10
Gain (loss) reclassified from Accumulated other comprehensive loss	$ (2)	$ 4	$ 1	$ 6

DERIVATIVE FINANCIAL INSTRUME50

DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES - Amounts Recognized in Net Income (Details) - Interest expense - net [Member] - Fair value hedging [Member] - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Derivative Instruments, Gain (Loss) [Line Items]
Amounts recognized in net income	$ 0	$ 0	$ 0	$ 0
Fixed-to-floating interest rate swaps [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Amounts recognized in net income	30	(51)	106	(3)
Related long-term debt converted to floating interest rates by interest rate swaps [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Amounts recognized in net income	$ (30)	$ 51	$ (106)	$ 3

INVENTORY (Details)

INVENTORY (Details) - USD ($) $ in Millions	Jun. 30, 2016	Dec. 31, 2015
Inventory Disclosure [Abstract]
Raw materials	$ 917	$ 885
Work-in-process	430	412
Finished goods	1,075	1,131
Inventory at FIFO	2,422	2,428
Excess of FIFO over LIFO cost	(99)	(105)
Total inventory	$ 2,323	$ 2,323

BUSINESS SEGMENT INFORMATION (D

BUSINESS SEGMENT INFORMATION (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Business Segment Information
Net sales	$ 5,080	$ 5,372	$ 9,893	$ 10,595
Corporate
Interest expense - net	57	59	114	116
Pension and other postretirement benefits expense			(116)	(158)
Other corporate expense - net	5	(19)	(13)	(24)
Income before income taxes	553	598	995	1,103
Income tax expense	61	63	100	101
Net income	492	535	895	1,002
Less net income for noncontrolling interests	(1)	0	0	(1)
Net income attributable to Eaton ordinary shareholders	491	535	895	1,001
Total business segments [Member]
Business Segment Information
Net sales	5,080	5,372	9,893	10,595
Segment operating profit	779	840	1,448	1,593
Total business segments [Member] | Electrical Products [Member]
Business Segment Information
Net sales	1,784	1,784	3,464	3,475
Segment operating profit	322	276	593	536
Total business segments [Member] | Electrical Systems and Services [Member]
Business Segment Information
Net sales	1,429	1,502	2,771	2,950
Segment operating profit	178	223	337	409
Total business segments [Member] | Hydraulics [Member]
Business Segment Information
Net sales	589	643	1,140	1,308
Segment operating profit	59	74	100	140
Total business segments [Member] | Aerospace [Member]
Business Segment Information
Net sales	447	454	892	918
Segment operating profit	83	77	163	154
Total business segments [Member] | Vehicle [Member]
Business Segment Information
Net sales	831	989	1,626	1,944
Segment operating profit	137	190	255	354
Corporate [Member]
Corporate
Amortization of intangible assets	(98)	(102)	(198)	(204)
Interest expense - net	(57)	(59)	(114)	(116)
Pension and other postretirement benefits expense	(13)	(33)	(27)	(61)
Other corporate expense - net	$ (58)	$ (48)	$ (114)	$ (109)

CONDENSED CONSOLIDATING FINAN53

CONDENSED CONSOLIDATING FINANCIAL STATEMENTS - Narrative (Details)	Nov. 20, 2012
Condensed Consolidating Financial Information [Abstract]
Eaton and certain other 100% owned subsidiaries guarantee of Senior Debt	100.00%

CONDENSED CONSOLIDATING FINAN54

CONDENSED CONSOLIDATING FINANCIAL STATEMENTS - Consolidating Statements of Comprehensive Income (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Consolidating Statements of Comprehensive Income, Captions [Line Items]
Net sales	$ 5,080	$ 5,372	$ 9,893	$ 10,595
Cost of products sold	3,419	3,675	6,710	7,268
Selling and administrative expense	897	901	1,789	1,816
Research and development expense	149	158	298	316
Interest expense (income) - net	57	59	114	116
Other expense (income) - net	5	(19)	(13)	(24)
Equity in loss (earnings) of subsidiaries, net of tax	0	0	0	0
Intercompany expense (income) - net	0	0	0	0
Income before income taxes	553	598	995	1,103
Income tax expense (benefit)	61	63	100	101
Net income	492	535	895	1,002
Less net loss (income) for noncontrolling interests	(1)	0	0	(1)
Net income attributable to Eaton ordinary shareholders	491	535	895	1,001
Other comprehensive income	(255)	230	18	(404)
Total comprehensive income (loss) attributable to Eaton ordinary shareholders	236	765	913	597
Eaton Corporation plc [Member]
Consolidating Statements of Comprehensive Income, Captions [Line Items]
Net sales	0	0	0	0
Cost of products sold	0	0	0	0
Selling and administrative expense	2	2	4	4
Research and development expense	0	0	0	0
Interest expense (income) - net	0	0	0	0
Other expense (income) - net	0	0	0	0
Equity in loss (earnings) of subsidiaries, net of tax	(594)	(619)	(1,098)	(1,164)
Intercompany expense (income) - net	101	82	199	159
Income before income taxes	491	535	895	1,001
Income tax expense (benefit)	0	0	0	0
Net income	491	535	895	1,001
Less net loss (income) for noncontrolling interests	0	0	0	0
Net income attributable to Eaton ordinary shareholders	491	535	895	1,001
Other comprehensive income	(255)	230	18	(404)
Total comprehensive income (loss) attributable to Eaton ordinary shareholders	236	765	913	597
Eaton Corporation [Member]
Consolidating Statements of Comprehensive Income, Captions [Line Items]
Net sales	1,644	1,806	3,182	3,508
Cost of products sold	1,263	1,433	2,459	2,743
Selling and administrative expense	353	368	718	745
Research and development expense	55	66	117	137
Interest expense (income) - net	57	58	110	112
Other expense (income) - net	12	11	16	6
Equity in loss (earnings) of subsidiaries, net of tax	(155)	(58)	(325)	(267)
Intercompany expense (income) - net	(46)	(267)	(88)	(308)
Income before income taxes	105	195	175	340
Income tax expense (benefit)	13	41	20	19
Net income	92	154	155	321
Less net loss (income) for noncontrolling interests	0	0	0	0
Net income attributable to Eaton ordinary shareholders	92	154	155	321
Other comprehensive income	(7)	19	33	63
Total comprehensive income (loss) attributable to Eaton ordinary shareholders	85	173	188	384
Other subsidiaries [Member]
Consolidating Statements of Comprehensive Income, Captions [Line Items]
Net sales	3,065	3,248	5,943	6,364
Cost of products sold	2,230	2,322	4,305	4,599
Selling and administrative expense	350	359	681	719
Research and development expense	48	43	86	85
Interest expense (income) - net	(7)	(2)	(10)	(7)
Other expense (income) - net	(11)	(23)	(26)	(22)
Equity in loss (earnings) of subsidiaries, net of tax	(141)	(127)	(234)	(253)
Intercompany expense (income) - net	(372)	(296)	(688)	(603)
Income before income taxes	968	972	1,829	1,846
Income tax expense (benefit)	35	75	66	116
Net income	933	897	1,763	1,730
Less net loss (income) for noncontrolling interests	(2)	(1)	(2)	(2)
Net income attributable to Eaton ordinary shareholders	931	896	1,761	1,728
Other comprehensive income	(334)	288	(36)	(465)
Total comprehensive income (loss) attributable to Eaton ordinary shareholders	597	1,184	1,725	1,263
Guarantors
Consolidating Statements of Comprehensive Income, Captions [Line Items]
Net sales	1,640	1,705	3,210	3,401
Cost of products sold	1,197	1,273	2,392	2,568
Selling and administrative expense	192	172	386	348
Research and development expense	46	49	95	94
Interest expense (income) - net	6	5	9	11
Other expense (income) - net	4	(7)	(3)	(8)
Equity in loss (earnings) of subsidiaries, net of tax	(820)	(802)	(1,489)	(1,515)
Intercompany expense (income) - net	317	481	577	752
Income before income taxes	698	534	1,243	1,151
Income tax expense (benefit)	13	(38)	14	(17)
Net income	685	572	1,229	1,168
Less net loss (income) for noncontrolling interests	0	0	0	0
Net income attributable to Eaton ordinary shareholders	685	572	1,229	1,168
Other comprehensive income	(251)	235	25	(385)
Total comprehensive income (loss) attributable to Eaton ordinary shareholders	434	807	1,254	783
Consolidating adjustments [Member]
Consolidating Statements of Comprehensive Income, Captions [Line Items]
Net sales	(1,269)	(1,387)	(2,442)	(2,678)
Cost of products sold	(1,271)	(1,353)	(2,446)	(2,642)
Selling and administrative expense	0	0	0	0
Research and development expense	0	0	0	0
Interest expense (income) - net	1	(2)	5	0
Other expense (income) - net	0	0	0	0
Equity in loss (earnings) of subsidiaries, net of tax	1,710	1,606	3,146	3,199
Intercompany expense (income) - net	0	0	0	0
Income before income taxes	(1,709)	(1,638)	(3,147)	(3,235)
Income tax expense (benefit)	0	(15)	0	(17)
Net income	(1,709)	(1,623)	(3,147)	(3,218)
Less net loss (income) for noncontrolling interests	1	1	2	1
Net income attributable to Eaton ordinary shareholders	(1,708)	(1,622)	(3,145)	(3,217)
Other comprehensive income	592	(542)	(22)	787
Total comprehensive income (loss) attributable to Eaton ordinary shareholders	$ (1,116)	$ (2,164)	$ (3,167)	$ (2,430)

CONDENSED CONSOLIDATING FINAN55

CONDENSED CONSOLIDATING FINANCIAL STATEMENTS - Condensed Consolidating Balance Sheets (Details) - USD ($) $ in Millions	Jun. 30, 2016	Dec. 31, 2015	Jun. 30, 2015	Dec. 31, 2014
Current assets
Cash	$ 323	$ 268	$ 303	$ 781
Short-term investments	146	177
Accounts receivable - net	3,628	3,479
Intercompany accounts receivable	0	0
Inventory	2,323	2,323
Prepaid expenses and other current assets	406	369
Total current assets	6,826	6,616
Property, plant and equipment - net	3,551	3,565
Other noncurrent assets
Goodwill	13,450	13,479
Other intangible assets	5,795	6,014
Deferred income taxes	413	362
Investment in subsidiaries	0	0
Intercompany loans receivables	0	0
Other assets	1,119	960
Total assets	31,154	30,996
Liabilities and shareholders’ equity
Short-term debt	557	426
Current portion of long-term debt	252	242
Accounts payable	1,802	1,758
Intercompany accounts payable	0	0
Accrued compensation	316	366
Other current liabilities	1,889	1,833
Total current liabilities	4,816	4,625
Noncurrent liabilities
Long-term debt	7,605	7,746
Pension liabilities	1,554	1,586
Other postretirement benefits liabilities	433	440
Deferred income taxes	365	390
Intercompany loans payable	0	0
Other noncurrent liabilities	1,017	978
Total noncurrent liabilities	10,974	11,140
Shareholders’ equity
Eaton shareholders' equity	15,320	15,186
Noncontrolling interests	44	45
Total equity	15,364	15,231
Total liabilities and equity	31,154	30,996
Consolidation, Eliminations [Member]
Current assets
Cash	0	0	0	0
Short-term investments	0	0
Accounts receivable - net	0	0
Intercompany accounts receivable	(8,241)	(7,659)
Inventory	(76)	(80)
Prepaid expenses and other current assets	25	23
Total current assets	(8,292)	(7,716)
Property, plant and equipment - net	0	0
Other noncurrent assets
Goodwill	0	0
Other intangible assets	0	0
Deferred income taxes	(822)	(872)
Investment in subsidiaries	(129,001)	(112,935)
Intercompany loans receivables	(64,084)	(55,049)
Other assets	0	0
Total assets	(202,199)	(176,572)
Liabilities and shareholders’ equity
Short-term debt	0	0
Current portion of long-term debt	0	0
Accounts payable	0	0
Intercompany accounts payable	(8,241)	(7,659)
Accrued compensation	0	0
Other current liabilities	(1)	(5)
Total current liabilities	(8,242)	(7,664)
Noncurrent liabilities
Long-term debt	6	1
Pension liabilities	0	0
Other postretirement benefits liabilities	0	0
Deferred income taxes	(822)	(872)
Intercompany loans payable	(64,084)	(55,049)
Other noncurrent liabilities	0	0
Total noncurrent liabilities	(64,900)	(55,920)
Shareholders’ equity
Eaton shareholders' equity	(129,063)	(112,996)
Noncontrolling interests	6	8
Total equity	(129,057)	(112,988)
Total liabilities and equity	(202,199)	(176,572)
Non-Guarantor Subsidiaries [Member]
Current assets
Cash	314	235	281	594
Short-term investments	145	175
Accounts receivable - net	2,022	1,937
Intercompany accounts receivable	3,378	2,928
Inventory	1,392	1,395
Prepaid expenses and other current assets	224	229
Total current assets	7,475	6,899
Property, plant and equipment - net	1,946	1,885
Other noncurrent assets
Goodwill	5,831	5,860
Other intangible assets	2,092	2,208
Deferred income taxes	236	218
Investment in subsidiaries	11,997	10,166
Intercompany loans receivables	54,824	44,835
Other assets	372	346
Total assets	84,773	72,417
Liabilities and shareholders’ equity
Short-term debt	25	18
Current portion of long-term debt	1	1
Accounts payable	1,053	1,106
Intercompany accounts payable	1,125	1,183
Accrued compensation	214	236
Other current liabilities	940	875
Total current liabilities	3,358	3,419
Noncurrent liabilities
Long-term debt	17	17
Pension liabilities	769	782
Other postretirement benefits liabilities	78	77
Deferred income taxes	432	447
Intercompany loans payable	906	1,433
Other noncurrent liabilities	435	432
Total noncurrent liabilities	2,637	3,188
Shareholders’ equity
Eaton shareholders' equity	78,740	65,773
Noncontrolling interests	38	37
Total equity	78,778	65,810
Total liabilities and equity	84,773	72,417
Guarantors [Member]
Current assets
Cash	5	7	8	13
Short-term investments	1	2
Accounts receivable - net	1,100	1,030
Intercompany accounts receivable	4,143	3,888
Inventory	637	651
Prepaid expenses and other current assets	45	40
Total current assets	5,931	5,618
Property, plant and equipment - net	720	750
Other noncurrent assets
Goodwill	6,264	6,264
Other intangible assets	3,528	3,624
Deferred income taxes	0	0
Investment in subsidiaries	71,629	60,139
Intercompany loans receivables	1,509	1,573
Other assets	127	122
Total assets	89,708	78,090
Liabilities and shareholders’ equity
Short-term debt	0	0
Current portion of long-term debt	0	240
Accounts payable	322	260
Intercompany accounts payable	2,917	2,248
Accrued compensation	39	53
Other current liabilities	336	318
Total current liabilities	3,614	3,119
Noncurrent liabilities
Long-term debt	667	675
Pension liabilities	167	165
Other postretirement benefits liabilities	116	118
Deferred income taxes	755	815
Intercompany loans payable	44,729	36,432
Other noncurrent liabilities	211	200
Total noncurrent liabilities	46,645	38,405
Shareholders’ equity
Eaton shareholders' equity	39,449	36,566
Noncontrolling interests	0	0
Total equity	39,449	36,566
Total liabilities and equity	89,708	78,090
Eaton Corporation [Member]
Current assets
Cash	4	26	14	173
Short-term investments	0	0
Accounts receivable - net	506	512
Intercompany accounts receivable	710	842
Inventory	370	357
Prepaid expenses and other current assets	112	77
Total current assets	1,702	1,814
Property, plant and equipment - net	885	930
Other noncurrent assets
Goodwill	1,355	1,355
Other intangible assets	175	182
Deferred income taxes	999	1,016
Investment in subsidiaries	13,353	13,003
Intercompany loans receivables	7,751	8,641
Other assets	620	492
Total assets	26,840	27,433
Liabilities and shareholders’ equity
Short-term debt	532	408
Current portion of long-term debt	251	1
Accounts payable	427	392
Intercompany accounts payable	4,042	4,009
Accrued compensation	63	77
Other current liabilities	584	644
Total current liabilities	5,899	5,531
Noncurrent liabilities
Long-term debt	6,915	7,053
Pension liabilities	618	639
Other postretirement benefits liabilities	239	245
Deferred income taxes	0	0
Intercompany loans payable	1,924	2,962
Other noncurrent liabilities	371	346
Total noncurrent liabilities	10,067	11,245
Shareholders’ equity
Eaton shareholders' equity	10,874	10,657
Noncontrolling interests	0	0
Total equity	10,874	10,657
Total liabilities and equity	26,840	27,433
Eaton Corporation plc [Member]
Current assets
Cash	0	0	$ 0	$ 1
Short-term investments	0	0
Accounts receivable - net	0	0
Intercompany accounts receivable	10	1
Inventory	0	0
Prepaid expenses and other current assets	0	0
Total current assets	10	1
Property, plant and equipment - net	0	0
Other noncurrent assets
Goodwill	0	0
Other intangible assets	0	0
Deferred income taxes	0	0
Investment in subsidiaries	32,022	29,627
Intercompany loans receivables	0	0
Other assets	0	0
Total assets	32,032	29,628
Liabilities and shareholders’ equity
Short-term debt	0	0
Current portion of long-term debt	0	0
Accounts payable	0	0
Intercompany accounts payable	157	219
Accrued compensation	0	0
Other current liabilities	30	1
Total current liabilities	187	220
Noncurrent liabilities
Long-term debt	0	0
Pension liabilities	0	0
Other postretirement benefits liabilities	0	0
Deferred income taxes	0	0
Intercompany loans payable	16,525	14,222
Other noncurrent liabilities	0	0
Total noncurrent liabilities	16,525	14,222
Shareholders’ equity
Eaton shareholders' equity	15,320	15,186
Noncontrolling interests	0	0
Total equity	15,320	15,186
Total liabilities and equity	$ 32,032	$ 29,628

CONDENSED CONSOLIDATING FINAN56

CONDENSED CONSOLIDATING FINANCIAL STATEMENTS - Condensed Consolidating Statements of Cash Flows (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Condensed Consolidating Statements of Cash Flows, Captions [Line Items]
Net cash provided by (used in) operating activities	$ 1,116	$ 656
Investing activities
Capital expenditures for property, plant and equipment	(246)	(246)
Cash received from (paid for) acquisitions of businesses, net of cash acquired	1	(38)
Sales (purchases) of short-term investments - net	38	109
Investments in affiliates	0	0
Return of investments in affiliates	0
Loans to affiliates	0	0
Repayments of loans from affiliates	0	0
Proceeds from sale of businesses	0	1
Other - net	3	(33)
Net cash used in investing activities	(204)	(207)
Financing activities
Proceeds from borrowings	151	137
Payments on borrowings	(240)	(404)
Proceeds from borrowings from affiliates	0	0
Payments on borrowings from affiliates	0	0
Capital contributions from affiliates	0	0
Return of capital to affiliates	0
Other intercompany financing activities	0	0
Cash dividends paid	(521)	(514)
Exercise of employee stock options	37	46
Repurchase of shares	(295)	(170)
Excess tax benefit from equity-based compensation	3	0
Other - net	0	(7)
Net cash used in financing activities	(865)	(912)
Effect of currency on cash	8	(15)
Total increase (decrease) in cash	55	(478)
Cash at the beginning of the period	268	781
Cash at the end of the period	323	303
Eaton Corporation plc [Member]
Condensed Consolidating Statements of Cash Flows, Captions [Line Items]
Net cash provided by (used in) operating activities	(156)	(84)
Investing activities
Capital expenditures for property, plant and equipment	0	0
Cash received from (paid for) acquisitions of businesses, net of cash acquired	0	0
Sales (purchases) of short-term investments - net	0	0
Investments in affiliates	(1,250)	(1,482)
Return of investments in affiliates	0
Loans to affiliates	0	0
Repayments of loans from affiliates	0	0
Proceeds from sale of businesses		0
Other - net	0	0
Net cash used in investing activities	(1,250)	(1,482)
Financing activities
Proceeds from borrowings	0	0
Payments on borrowings	0	0
Proceeds from borrowings from affiliates	2,203	2,242
Payments on borrowings from affiliates	(18)	(39)
Capital contributions from affiliates	0	0
Return of capital to affiliates	0
Other intercompany financing activities	0	0
Cash dividends paid	(521)	(514)
Exercise of employee stock options	37	46
Repurchase of shares	(295)	(170)
Excess tax benefit from equity-based compensation	0
Other - net		0
Net cash used in financing activities	1,406	1,565
Effect of currency on cash	0	0
Total increase (decrease) in cash	0	(1)
Cash at the beginning of the period	0	1
Cash at the end of the period	0	0
Eaton Corporation [Member]
Condensed Consolidating Statements of Cash Flows, Captions [Line Items]
Net cash provided by (used in) operating activities	23	(272)
Investing activities
Capital expenditures for property, plant and equipment	(40)	(47)
Cash received from (paid for) acquisitions of businesses, net of cash acquired	0	0
Sales (purchases) of short-term investments - net	0	0
Investments in affiliates	0	0
Return of investments in affiliates	0
Loans to affiliates	(284)	(307)
Repayments of loans from affiliates	1,280	306
Proceeds from sale of businesses		0
Other - net	2	(31)
Net cash used in investing activities	958	(79)
Financing activities
Proceeds from borrowings	145	125
Payments on borrowings	0	(101)
Proceeds from borrowings from affiliates	1,385	3,775
Payments on borrowings from affiliates	(2,493)	(3,824)
Capital contributions from affiliates	0	1,176
Return of capital to affiliates	0
Other intercompany financing activities	(43)	(959)
Cash dividends paid	0	0
Exercise of employee stock options	0	0
Repurchase of shares	0	0
Excess tax benefit from equity-based compensation	3
Other - net		0
Net cash used in financing activities	(1,003)	192
Effect of currency on cash	0	0
Total increase (decrease) in cash	(22)	(159)
Cash at the beginning of the period	26	173
Cash at the end of the period	4	14
Guarantors [Member]
Condensed Consolidating Statements of Cash Flows, Captions [Line Items]
Net cash provided by (used in) operating activities	(298)	95
Investing activities
Capital expenditures for property, plant and equipment	(49)	(63)
Cash received from (paid for) acquisitions of businesses, net of cash acquired	1	0
Sales (purchases) of short-term investments - net	2	0
Investments in affiliates	(120)	(1,176)
Return of investments in affiliates	47
Loans to affiliates	(47)	(39)
Repayments of loans from affiliates	0	11
Proceeds from sale of businesses		0
Other - net	25	28
Net cash used in investing activities	(141)	(1,239)
Financing activities
Proceeds from borrowings	0	0
Payments on borrowings	(240)	(301)
Proceeds from borrowings from affiliates	782	314
Payments on borrowings from affiliates	(1,658)	(1,160)
Capital contributions from affiliates	1,370	1,482
Return of capital to affiliates	0
Other intercompany financing activities	183	804
Cash dividends paid	0	0
Exercise of employee stock options	0	0
Repurchase of shares	0	0
Excess tax benefit from equity-based compensation	0
Other - net		0
Net cash used in financing activities	437	1,139
Effect of currency on cash	0	0
Total increase (decrease) in cash	(2)	(5)
Cash at the beginning of the period	7	13
Cash at the end of the period	5	8
Other subsidiaries [Member]
Condensed Consolidating Statements of Cash Flows, Captions [Line Items]
Net cash provided by (used in) operating activities	1,547	917
Investing activities
Capital expenditures for property, plant and equipment	(157)	(136)
Cash received from (paid for) acquisitions of businesses, net of cash acquired	0	(38)
Sales (purchases) of short-term investments - net	36	109
Investments in affiliates	(1,370)	(1,482)
Return of investments in affiliates	0
Loans to affiliates	(4,236)	(6,027)
Repayments of loans from affiliates	2,922	4,720
Proceeds from sale of businesses		1
Other - net	(24)	(30)
Net cash used in investing activities	(2,829)	(2,883)
Financing activities
Proceeds from borrowings	6	12
Payments on borrowings	0	(2)
Proceeds from borrowings from affiliates	197	42
Payments on borrowings from affiliates	(33)	(14)
Capital contributions from affiliates	1,370	1,482
Return of capital to affiliates	(47)
Other intercompany financing activities	(140)	155
Cash dividends paid	0	0
Exercise of employee stock options	0	0
Repurchase of shares	0	0
Excess tax benefit from equity-based compensation	0
Other - net		(7)
Net cash used in financing activities	1,353	1,668
Effect of currency on cash	8	(15)
Total increase (decrease) in cash	79	(313)
Cash at the beginning of the period	235	594
Cash at the end of the period	314	281
Consolidation, Eliminations [Member]
Condensed Consolidating Statements of Cash Flows, Captions [Line Items]
Net cash provided by (used in) operating activities	0	0
Investing activities
Capital expenditures for property, plant and equipment	0	0
Cash received from (paid for) acquisitions of businesses, net of cash acquired	0	0
Sales (purchases) of short-term investments - net	0	0
Investments in affiliates	2,740	4,140
Return of investments in affiliates	(47)
Loans to affiliates	4,567	6,373
Repayments of loans from affiliates	(4,202)	(5,037)
Proceeds from sale of businesses		0
Other - net	0	0
Net cash used in investing activities	3,058	5,476
Financing activities
Proceeds from borrowings	0	0
Payments on borrowings	0	0
Proceeds from borrowings from affiliates	(4,567)	(6,373)
Payments on borrowings from affiliates	4,202	5,037
Capital contributions from affiliates	(2,740)	(4,140)
Return of capital to affiliates	47
Other intercompany financing activities	0	0
Cash dividends paid	0	0
Exercise of employee stock options	0	0
Repurchase of shares	0	0
Excess tax benefit from equity-based compensation	0
Other - net		0
Net cash used in financing activities	(3,058)	(5,476)
Effect of currency on cash	0	0
Total increase (decrease) in cash	0	0
Cash at the beginning of the period	0	0
Cash at the end of the period	$ 0	$ 0