Eaton (ETN) 10-Q 1 Nov 16 2016 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information Document and Entity Information shares in Millions	9 Months Ended
	Sep. 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	Sep. 30, 2016
Amendment Flag	false
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q3
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)	451.7

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Millions, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Income Statement [Abstract]
Net sales	$ 4,987	$ 5,203	$ 14,880	$ 15,798
Cost of products sold	3,371	3,597	10,081	10,865
Selling and administrative expense	853	907	2,642	2,723
Research and development expense	146	156	444	472
Interest expense - net	59	59	173	175
Other income - net	(15)	(3)	(28)	(27)
Income before income taxes	573	487	1,568	1,590
Income tax expense	51	42	151	143
Net income	522	445	1,417	1,447
Less net loss for noncontrolling interests	1	1	1	0
Net income attributable to Eaton ordinary shareholders	$ 523	$ 446	$ 1,418	$ 1,447
Net income per share attributable to Eaton ordinary shareholders
Diluted (usd per share)	$ 1.15	$ 0.96	$ 3.09	$ 3.09
Basic (usd per share)	$ 1.15	$ 0.96	$ 3.10	$ 3.10
Weighted-average number of ordinary shares outstanding
Diluted (shares)	455.6	466.4	457.9	468.5
Basic (shares)	453.9	465.1	456.5	466.8
Cash dividends declared per ordinary share (usd per share)	$ 0.57	$ 0.55	$ 1.71	$ 1.65

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Statement of Comprehensive Income [Abstract]
Net income	$ 522	$ 445	$ 1,417	$ 1,447
Less net loss for noncontrolling interests	1	1	1	0
Net income attributable to Eaton ordinary shareholders	523	446	1,418	1,447
Other comprehensive (loss) income, net of tax
Currency translation and related hedging instruments	(22)	(372)	(57)	(883)
Pensions and other postretirement benefits	45	60	132	164
Cash flow hedges	1	0	(33)	3
Other comprehensive (loss) income attributable to Eaton ordinary shareholders	24	(312)	42	(716)
Total comprehensive income attributable to Eaton ordinary shareholders	$ 547	$ 134	$ 1,460	$ 731

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions	Sep. 30, 2016	Dec. 31, 2015	Sep. 30, 2015	Dec. 31, 2014
Current assets
Cash	$ 494	$ 268	$ 418	$ 781
Short-term investments	213	177
Accounts receivable - net	3,659	3,479
Inventory	2,328	2,323
Prepaid expenses and other current assets	393	369
Total current assets	7,087	6,616
Property, plant and equipment - net	3,506	3,565
Other noncurrent assets
Goodwill	13,434	13,479
Other intangible assets	5,689	6,014
Deferred income taxes	412	362
Other assets	1,109	960
Total assets	31,237	30,996
Current liabilities
Short-term debt	1	426
Current portion of long-term debt	550	242
Accounts payable	1,790	1,758
Accrued compensation	388	366
Other current liabilities	1,866	1,833
Total current liabilities	4,595	4,625
Noncurrent liabilities
Long-term debt	7,881	7,746
Pension liabilities	1,532	1,586
Other postretirement benefits liabilities	429	440
Deferred income taxes	366	390
Other noncurrent liabilities	988	978
Total noncurrent liabilities	11,196	11,140
Shareholders’ equity
Eaton shareholders’ equity	15,404	15,186
Noncontrolling interests	42	45
Total equity	15,446	15,231
Total liabilities and equity	$ 31,237	$ 30,996

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Operating activities
Net income	$ 1,417	$ 1,447
Adjustments to reconcile to net cash provided by operating activities
Depreciation and amortization	700	692
Deferred income taxes	(105)	(101)
Pension and other postretirement benefits expense	177	244
Contributions to pension plans	(114)	(290)
Contributions to other postretirement benefits plans	(26)	(24)
Changes in working capital	(224)	(184)
Other - net	89	(155)
Net cash provided by operating activities	1,914	1,629
Investing activities
Capital expenditures for property, plant and equipment	(346)	(368)
Cash received from (paid for) acquisitions of businesses, net of cash acquired	1	(38)
Sales (purchases) of short-term investments - net	(29)	76
Proceeds from sale of businesses	0	1
Other - net	3	(44)
Net cash used in investing activities	(371)	(373)
Financing activities
Proceeds from borrowings	633	1
Payments on borrowings	(666)	(405)
Cash dividends paid	(780)	(771)
Exercise of employee stock options	60	48
Repurchase of shares	(567)	(454)
Other - net	(5)	(8)
Net cash used in financing activities	(1,325)	(1,589)
Effect of currency on cash	8	(30)
Total increase (decrease) in cash	226	(363)
Cash at the beginning of the period	268	781
Cash at the end of the period	$ 494	$ 418

BASIS OF PRESENTATION

BASIS OF PRESENTATION	9 Months Ended
	Sep. 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 $36 and $35 within the Company's Condensed Consolidated Balance Sheets as of September 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	9 Months Ended
	Sep. 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	9 Months Ended
	Sep. 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 Nine months ended 2016 2015 2016 2015 Electrical Products $ 1 $ 5 $ 2 $ 17 Electrical Systems and Services — 3 1 10 Hydraulics — — — 2 Total business segments 1 8 3 29 Corporate — 2 — 4 Total acquisition integration charges before income taxes 1 10 3 33 Income taxes — 3 1 11 Total after income taxes $ 1 $ 7 $ 2 $ 22 Per ordinary share - diluted $ — $ 0.01 $ — $ 0.05 Business segment acquisition integration charges in 2016 related to the integration of Ephesus Lighting, Inc. (Ephesus) and Oxalis Group Ltd. (Oxalis), which were acquired in 2015. The charges associated with Ephesus were included in Cost of products sold and Selling and administrative expense, while the charges associated with Oxalis were included in Cost of products sold. Business segment acquisition integration charges in 2015 related primarily to the integration of Cooper Industries plc (Cooper), which was acquired in 2012. 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 14 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	9 Months Ended
	Sep. 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 nine months ended September 30, 2016 , were $23 and $121 , respectively, and were $113 and $127 for the three and nine months ended September 30, 2015 , respectively. The charges associated with restructuring activities are anticipated to be $145 in 2016 and $180 in 2017. A summary of restructuring charges by type follows: Three months ended Nine months ended 2016 2015 2016 2015 Workforce reductions $ 18 $ 99 $ 95 $ 111 Plant closings and other 5 14 26 16 Total $ 23 $ 113 $ 121 $ 127 A summary of restructuring charges by segment follows: Three months ended Nine months ended 2016 2015 2016 2015 Electrical Products $ 1 $ 11 $ 27 $ 12 Electrical Systems & Services 7 26 20 26 Hydraulics 10 25 44 34 Aerospace (1 ) 5 3 5 Vehicle 5 29 22 33 Corporate 1 17 5 17 Total $ 23 $ 113 $ 121 $ 127 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 95 26 121 Payments (89 ) (11 ) (100 ) Other adjustments (1 ) (14 ) (15 ) Balance at September 30, 2016 $ 59 $ 1 $ 60 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 14 for additional information about business segments.

GOODWILL

GOODWILL	9 Months Ended
	Sep. 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 Translation (24 ) (12 ) 2 (13 ) 2 (45 ) September 30, 2016 $ 6,618 $ 4,267 $ 1,261 $ 943 $ 345 $ 13,434

DEBT

DEBT	9 Months Ended
	Sep. 30, 2016
Debt Disclosure [Abstract]
DEBT	DEBT On September 20, 2016, a subsidiary of Eaton issued Euro denominated notes (Euro Notes) with a face value of €550 ( $615 based on the September 20, 2016 spot rate), in accordance with Regulation S promulgated under the Securities Act of 1933, as amended. The Euro Notes mature in 2024 with interest payable annually at a rate of 0.75% . The issuer received proceeds totaling €544 ( $609 based on the September 20, 2016 spot rate) from the issuance, net of financing costs and discounts. The senior Euro Notes are fully and unconditionally guaranteed on an unsubordinated, unsecured basis by Eaton and certain of its direct and indirect subsidiaries. The Euro Notes contain an optional redemption provision by which the Company may make an offer to purchase all or any part of the Euro Notes prior to June 20, 2024 at a purchase price of the greater of (a) 100% of the principal amount of the respective Euro Notes being redeemed, or (b) the sum of the present values of the respective remaining scheduled payments of principal and interest, discounted to the redemption date on an annual basis at the benchmark Bund Rate plus 20 basis points. In each case, the redemption price will include any accrued and unpaid interest on the Euro Notes being redeemed. At any time on or after June 20, 2024, the Company may redeem the Euro Notes, in whole or in part, at a redemption price equal to 100% of the principal amount to be redeemed plus accrued and unpaid interest. The Euro Notes also contain a change of control provision which requires the Company to make an offer to purchase all or any part of the Euro Notes at a purchase price of 101% of the principal amount plus accrued and unpaid interest. The capitalized deferred financing fees and discounts are amortized in Interest expense - net over the respective terms of the Euro Notes. The Euro Notes are subject to customary non-financial covenants. On October 14, 2016, Eaton refinanced a $750 , five-year revolving credit facility with a $750 , five-year revolving credit facility that will expire October 14, 2021. Eaton also maintains a $500 , four-year revolving credit facility that will expire on October 3, 2018 and a $750 , five-year credit facility that will expire October 3, 2019. This refinancing maintains long-term revolving credit facilities at a total of $2,000 . The revolving credit facilities are used to support commercial paper borrowings and are fully and unconditionally guaranteed by Eaton and certain of its direct and indirect subsidiaries on an unsubordinated, unsecured basis. There were no borrowings outstanding under these revolving credit facilities at September 30, 2016 or October 14, 2016.

RETIRED BENEFIT PLANS

RETIRED BENEFIT PLANS	9 Months Ended
	Sep. 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 September 30 2016 2015 2016 2015 2016 2015 Service cost $ 28 $ 31 $ 16 $ 18 $ 1 $ 2 Interest cost 31 39 16 18 4 6 Expected return on plan assets (63 ) (65 ) (23 ) (25 ) (2 ) (2 ) Amortization 23 29 8 10 (2 ) — 19 34 17 21 1 6 Settlements 24 25 — — — — Total expense $ 43 $ 59 $ 17 $ 21 $ 1 $ 6 United States Non-United States Other postretirement Nine months ended September 30 2016 2015 2016 2015 2016 2015 Service cost $ 83 $ 92 $ 49 $ 55 $ 3 $ 5 Interest cost 94 117 48 54 13 18 Expected return on plan assets (188 ) (196 ) (71 ) (75 ) (5 ) (4 ) Amortization 69 89 25 30 (6 ) 1 58 102 51 64 5 20 Settlements and curtailments 63 58 — — — — Total expense $ 121 $ 160 $ 51 $ 64 $ 5 $ 20

LEGAL CONTINGENCIES

LEGAL CONTINGENCIES	9 Months Ended
	Sep. 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 June 2016 exchange rates). In June 2016, Eaton signed a settlement agreement and resolved the matter, which did not have a material impact on the consolidated financial statements.

INCOME TAXES

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

EQUITY

EQUITY	9 Months Ended
	Sep. 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 , 1.5 million ordinary shares were repurchased under the 2013 Program in the open market at a total cost of $82 . During the three and nine months ended September 30, 2015 , 4.8 million and 7.2 million ordinary shares were repurchased under the 2013 Program in the open market at a total cost of $284 and $454 , 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 three and nine months ended September 30, 2016 , 3.7 million and 7.7 million ordinary shares, respectively, were purchased on the open market under the 2016 Program for a total cost of $243 and $485 , 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 (loss) 1,418 (1 ) 1,417 Other comprehensive income 42 — 42 Cash dividends paid (780 ) (2 ) (782 ) Issuance of shares under equity-based compensation plans - net 105 — 105 Repurchase of shares (567 ) — (567 ) Balance at September 30, 2016 $ 15,404 $ 42 $ 15,446 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 (57 ) 33 (35 ) (59 ) Amounts reclassified from Accumulated other comprehensive loss (income) — 99 2 101 Net current-period Other comprehensive income (loss) (57 ) 132 (33 ) 42 Balance at September 30, 2016 $ (2,549 ) $ (1,242 ) $ (30 ) $ (3,821 ) The reclassifications out of Accumulated other comprehensive loss follow: Nine months ended September 30, 2016 Consolidated statements of income classification Amortization of defined benefit pensions and other postretirement benefits items Actuarial loss and prior service cost $ (151 ) 1 Tax benefit 52 Total, net of tax (99 ) Gains and (losses) on cash flow hedges Currency exchange contracts (3 ) Cost of products sold Tax benefit 1 Total, net of tax (2 ) Total reclassifications for the period $ (101 ) 1 These components of Accumulated other comprehensive loss are included in the computation of net periodic benefit cost. See Note 7 for additional information about 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 Nine months ended (Shares in millions) 2016 2015 2016 2015 Net income attributable to Eaton ordinary shareholders $ 523 $ 446 $ 1,418 $ 1,447 Weighted-average number of ordinary shares outstanding - diluted 455.6 466.4 457.9 468.5 Less dilutive effect of equity-based compensation 1.7 1.3 1.4 1.7 Weighted-average number of ordinary shares outstanding - basic 453.9 465.1 456.5 466.8 Net income per share attributable to Eaton ordinary shareholders Diluted $ 1.15 $ 0.96 $ 3.09 $ 3.09 Basic 1.15 0.96 3.10 3.10 For the third quarter and first nine months of 2016 , 1.5 million and 1.8 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 third quarter and first nine months of 2015 , 1.8 million and 1.3 million stock options, respectively, were excluded from the calculation of diluted net income per share attributable to Eaton ordinary shareholders because the exercise price of the options exceeded the average market price of the ordinary shares during the periods and their effect, accordingly, would have been antidilutive.

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	9 Months Ended
	Sep. 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 September 30, 2016 Cash $ 494 $ 494 $ — $ — Short-term investments 213 213 — — Net derivative contracts 148 — 148 — Long-term debt converted to floating interest rates by interest rate swaps - net (172 ) — (172 ) — 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 $8,431 and fair value of $9,050 at September 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	9 Months Ended
	Sep. 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 as non-derivative net investment hedging instruments on an after-tax basis was $99 at September 30, 2016 and $83 at December 31, 2015 , and designated on a pre-tax basis was $607 at September 30, 2016 . Derivative Financial Statement Impacts The fair value of derivative financial instruments recognized in the Condensed Consolidated Balance Sheets follows: Notional amount Other current assets Other noncurrent assets Other current liabilities Other noncurrent liabilities Type of hedge Term September 30, 2016 Derivatives designated as hedges Fixed-to-floating interest rate swaps $ 3,765 $ — $ 172 $ — $ — Fair value 1 month to 19 years Forward starting floating-to-fixed interest rate swaps 450 — — — 18 Cash flow 12 years Currency exchange contracts 826 5 1 19 14 Cash flow 1 to 36 months Total $ 5 $ 173 $ 19 $ 32 Derivatives not designated as hedges Currency exchange contracts $ 3,991 $ 34 $ — $ 15 $ — 1 to 24 months Commodity contracts 41 2 — 1 to 12 months Total $ 36 $ — $ 15 $ — 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 $ 1 $ — Interest expense - net $ — $ — Currency exchange contracts (3 ) 6 Cost of products sold (4 ) 5 Total $ (2 ) $ 6 $ (4 ) $ 5 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 Nine months ended Nine months ended 2016 2015 2016 2015 Derivatives designated as cash flow hedges Forward starting floating-to-fixed interest rate swaps $ (18 ) $ — Interest expense - net $ — $ — Currency exchange contracts (35 ) 16 Cost of products sold (3 ) 11 Total $ (53 ) $ 16 $ (3 ) $ 11 Amounts recognized in net income follow: Three months ended Nine months ended 2016 2015 2016 2015 Derivatives designated as fair value hedges Fixed-to-floating interest rate swaps $ (28 ) $ 65 $ 78 $ 62 Related long-term debt converted to floating interest rates by interest rate swaps 28 (65 ) (78 ) (62 ) $ — $ — $ — $ — Gains and losses described above were recognized in Interest expense - net.

INVENTORY

INVENTORY	9 Months Ended
	Sep. 30, 2016
Inventory Disclosure [Abstract]
INVENTORY	INVENTORY The components of inventory follow: September 30, December 31, Raw materials $ 910 $ 885 Work-in-process 431 412 Finished goods 1,083 1,131 Inventory at FIFO 2,424 2,428 Excess of FIFO over LIFO cost (96 ) (105 ) Total inventory $ 2,328 $ 2,323

BUSINESS SEGMENT INFORMATION

BUSINESS SEGMENT INFORMATION	9 Months Ended
	Sep. 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 Nine months ended 2016 2015 2016 2015 Net sales Electrical Products $ 1,767 $ 1,771 $ 5,231 $ 5,246 Electrical Systems and Services 1,436 1,487 4,207 4,437 Hydraulics 562 599 1,702 1,907 Aerospace 436 449 1,328 1,367 Vehicle 786 897 2,412 2,841 Total net sales $ 4,987 $ 5,203 $ 14,880 $ 15,798 Segment operating profit Electrical Products $ 331 $ 322 $ 924 $ 858 Electrical Systems and Services 197 164 534 573 Hydraulics 61 44 161 184 Aerospace 88 79 251 233 Vehicle 122 136 377 490 Total segment operating profit 799 745 2,247 2,338 Corporate Amortization of intangible assets (99 ) (102 ) (297 ) (306 ) Interest expense - net (59 ) (59 ) (173 ) (175 ) Pension and other postretirement benefits expense (18 ) (38 ) (45 ) (99 ) Other corporate expense - net (50 ) (59 ) (164 ) (168 ) Income before income taxes 573 487 1,568 1,590 Income tax expense 51 42 151 143 Net income 522 445 1,417 1,447 Less net loss for noncontrolling interests 1 1 1 — Net income attributable to Eaton ordinary shareholders $ 523 $ 446 $ 1,418 $ 1,447

CONDENSED CONSOLIDATING FINANCI

CONDENSED CONSOLIDATING FINANCIAL STATEMENTS	9 Months Ended
	Sep. 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 SEPTEMBER 30, 2016 Eaton Corporation plc Eaton Corporation Guarantors Other subsidiaries Consolidating adjustments Total Net sales $ — $ 1,660 $ 1,583 $ 3,040 $ (1,296 ) $ 4,987 Cost of products sold — 1,329 1,162 2,173 (1,293 ) 3,371 Selling and administrative expense 2 330 197 324 — 853 Research and development expense — 59 43 44 — 146 Interest expense (income) - net — 59 4 (3 ) (1 ) 59 Other expense (income) - net (1 ) 18 — (32 ) — (15 ) Equity in loss (earnings) of subsidiaries, net of tax (628 ) (173 ) (895 ) (219 ) 1,915 — Intercompany expense (income) - net 104 (47 ) 336 (393 ) — — Income (loss) before income taxes 523 85 736 1,146 (1,917 ) 573 Income tax expense (benefit) — (11 ) 10 53 (1 ) 51 Net income (loss) 523 96 726 1,093 (1,916 ) 522 Less net loss (income) for noncontrolling interests — — — — 1 1 Net income (loss) attributable to Eaton ordinary shareholders $ 523 $ 96 $ 726 $ 1,093 $ (1,915 ) $ 523 Other comprehensive income (loss) $ 24 $ 24 $ 29 $ 2 $ (55 ) $ 24 Total comprehensive income (loss) attributable to Eaton ordinary shareholders $ 547 $ 120 $ 755 $ 1,095 $ (1,970 ) $ 547 CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2015 Eaton Corporation plc Eaton Corporation Guarantors Other subsidiaries Consolidating adjustments Total Net sales $ — $ 1,755 $ 1,664 $ 3,105 $ (1,321 ) $ 5,203 Cost of products sold — 1,380 1,269 2,265 (1,317 ) 3,597 Selling and administrative expense 2 375 191 339 — 907 Research and development expense — 65 51 40 — 156 Interest expense (income) - net — 54 5 (3 ) 3 59 Other expense (income) - net — 11 3 (17 ) — (3 ) Equity in loss (earnings) of subsidiaries, net of tax (534 ) (264 ) (888 ) (64 ) 1,750 — Intercompany expense (income) - net 86 (54 ) 258 (290 ) — — Income (loss) before income taxes 446 188 775 835 (1,757 ) 487 Income tax expense (benefit) 17 (15 ) 38 2 42 Net income (loss) 446 171 790 797 (1,759 ) 445 Less net loss (income) for noncontrolling interests — — — 1 — 1 Net income (loss) attributable to Eaton ordinary shareholders $ 446 $ 171 $ 790 $ 798 $ (1,759 ) $ 446 Other comprehensive income (loss) $ (312 ) $ (24 ) $ (305 ) $ (411 ) $ 740 $ (312 ) Total comprehensive income (loss) attributable to Eaton ordinary shareholders $ 134 $ 147 $ 485 $ 387 $ (1,019 ) $ 134 CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2016 Eaton Corporation plc Eaton Corporation Guarantors Other subsidiaries Consolidating adjustments Total Net sales $ — $ 4,842 $ 4,793 $ 8,983 $ (3,738 ) $ 14,880 Cost of products sold — 3,788 3,554 6,478 (3,739 ) 10,081 Selling and administrative expense 6 1,048 583 1,005 — 2,642 Research and development expense — 176 138 130 — 444 Interest expense (income) - net — 169 13 (13 ) 4 173 Other expense (income) - net (1 ) 34 (3 ) (58 ) — (28 ) Equity in loss (earnings) of subsidiaries, net of tax (1,726 ) (495 ) (2,384 ) (434 ) 5,039 — Intercompany expense (income) - net 303 (135 ) 913 (1,081 ) — — Income (loss) before income taxes 1,418 257 1,979 2,956 (5,042 ) 1,568 Income tax expense (benefit) — 9 24 119 (1 ) 151 Net income (loss) 1,418 248 1,955 2,837 (5,041 ) 1,417 Less net loss (income) for noncontrolling interests — — — (2 ) 3 1 Net income (loss) attributable to Eaton ordinary shareholders $ 1,418 $ 248 $ 1,955 $ 2,835 $ (5,038 ) $ 1,418 Other comprehensive income (loss) $ 42 $ 68 $ 54 $ (21 ) $ (101 ) $ 42 Total comprehensive income (loss) attributable to Eaton ordinary shareholders $ 1,460 $ 316 $ 2,009 $ 2,814 $ (5,139 ) $ 1,460 CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2015 Eaton Corporation plc Eaton Corporation Guarantors Other subsidiaries Consolidating adjustments Total Net sales $ — $ 5,263 $ 5,065 $ 9,469 $ (3,999 ) $ 15,798 Cost of products sold — 4,123 3,837 6,864 (3,959 ) 10,865 Selling and administrative expense 6 1,120 539 1,058 — 2,723 Research and development expense — 202 145 125 — 472 Interest expense (income) - net — 166 16 (10 ) 3 175 Other expense (income) - net — 17 (5 ) (39 ) — (27 ) Equity in loss (earnings) of subsidiaries, net of tax (1,698 ) (529 ) (2,403 ) (315 ) 4,945 — Intercompany expense (income) - net 245 (362 ) 1,010 (893 ) — — Income (loss) before income taxes 1,447 526 1,926 2,679 (4,988 ) 1,590 Income tax expense (benefit) — 36 (32 ) 154 (15 ) 143 Net income (loss) 1,447 490 1,958 2,525 (4,973 ) 1,447 Less net loss (income) for noncontrolling interests — — — (1 ) 1 — Net income (loss) attributable to Eaton ordinary shareholders $ 1,447 $ 490 $ 1,958 $ 2,524 $ (4,972 ) $ 1,447 Other comprehensive income (loss) $ (716 ) $ 39 $ (691 ) $ (875 ) $ 1,527 $ (716 ) Total comprehensive income (loss) attributable to Eaton $ 731 $ 529 $ 1,267 $ 1,649 $ (3,445 ) $ 731 CONDENSED CONSOLIDATING BALANCE SHEETS SEPTEMBER 30, 2016 Eaton Corporation plc Eaton Corporation Guarantors Other subsidiaries Consolidating adjustments Total Assets Current assets Cash $ 1 $ 70 $ 4 $ 419 $ — $ 494 Short-term investments — — — 213 — 213 Accounts receivable - net — 510 1,072 2,077 — 3,659 Intercompany accounts receivable 2 637 4,149 3,484 (8,272 ) — Inventory — 365 647 1,395 (79 ) 2,328 Prepaid expenses and other current assets — 107 40 219 27 393 Total current assets 3 1,689 5,912 7,807 (8,324 ) 7,087 Property, plant and equipment - net — 863 712 1,931 — 3,506 Other noncurrent assets Goodwill — 1,355 6,264 5,815 — 13,434 Other intangible assets — 172 3,481 2,036 — 5,689 Deferred income taxes — 987 — 231 (806 ) 412 Investment in subsidiaries 32,690 13,491 72,562 12,194 (130,937 ) — Intercompany loans receivable — 7,614 2,182 56,101 (65,897 ) — Other assets — 603 129 377 — 1,109 Total assets $ 32,693 $ 26,774 $ 91,242 $ 86,492 $ (205,964 ) $ 31,237 Liabilities and shareholders’ equity Current liabilities Short-term debt $ — $ — $ — $ 1 $ — $ 1 Current portion of long-term debt — 251 299 — — 550 Accounts payable — 415 259 1,116 — 1,790 Intercompany accounts payable 194 3,966 2,982 1,130 (8,272 ) — Accrued compensation — 85 51 252 — 388 Other current liabilities 1 630 297 939 (1 ) 1,866 Total current liabilities 195 5,347 3,888 3,438 (8,273 ) 4,595 Noncurrent liabilities Long-term debt — 6,889 971 16 5 7,881 Pension liabilities — 605 168 759 — 1,532 Other postretirement benefits liabilities — 237 114 78 — 429 Deferred income taxes — — 771 401 (806 ) 366 Intercompany loans payable 17,094 2,377 44,900 1,526 (65,897 ) — Other noncurrent liabilities — 344 214 430 — 988 Total noncurrent liabilities 17,094 10,452 47,138 3,210 (66,698 ) 11,196 Shareholders’ equity Eaton shareholders' equity 15,404 10,975 40,216 79,807 (130,998 ) 15,404 Noncontrolling interests — — — 37 5 42 Total equity 15,404 10,975 40,216 79,844 (130,993 ) 15,446 Total liabilities and equity $ 32,693 $ 26,774 $ 91,242 $ 86,492 $ (205,964 ) $ 31,237 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 12,883 60,139 10,046 (112,695 ) — Intercompany loans receivable — 8,641 1,573 44,835 (55,049 ) — Other assets — 492 122 346 — 960 Total assets $ 29,628 $ 27,313 $ 78,090 $ 72,297 $ (176,332 ) $ 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 10,537 36,566 65,653 (112,756 ) 15,186 Noncontrolling interests — — — 37 8 45 Total equity 15,186 10,537 36,566 65,690 (112,748 ) 15,231 Total liabilities and equity $ 29,628 $ 27,313 $ 78,090 $ 72,297 $ (176,332 ) $ 30,996 CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2016 Eaton Corporation plc Eaton Corporation Guarantors Other subsidiaries Consolidating adjustments Total Net cash provided by (used in) operating activities $ (158 ) $ (29 ) $ (283 ) $ 2,384 $ — $ 1,914 Investing activities Capital expenditures for property, plant and equipment — (62 ) (75 ) (209 ) — (346 ) Cash received from (paid for) acquisitions of businesses, net of cash acquired — — 1 — — 1 Sales (purchases) of short-term investments - net — — 2 (31 ) — (29 ) Investments in affiliates (1,250 ) — (120 ) (1,370 ) 2,740 — Return of investments in affiliates — — 47 — (47 ) — Loans to affiliates — (287 ) (655 ) (6,457 ) 7,399 — Repayments of loans from affiliates — 1,288 — 4,501 (5,789 ) — Other - net — — 30 (27 ) — 3 Net cash provided by (used in) investing activities (1,250 ) 939 (770 ) (3,593 ) 4,303 (371 ) Financing activities Proceeds from borrowings — 22 611 — — 633 Payments on borrowings — (408 ) (240 ) (18 ) — (666 ) Proceeds from borrowings from affiliates 3,333 2,815 1,051 200 (7,399 ) — Payments on borrowings from affiliates (637 ) (3,453 ) (1,658 ) (41 ) 5,789 — Capital contributions from affiliates — — 1,370 1,370 (2,740 ) — Return of capital to affiliates — — — (47 ) 47 — Other intercompany financing activities — 158 (81 ) (77 ) — — Cash dividends paid (780 ) — — — — (780 ) Exercise of employee stock options 60 — — — — 60 Repurchase of shares (567 ) — — — — (567 ) Excess tax benefit from equity-based compensation — — — — — — Other - net — — (3 ) (2 ) — (5 ) Net cash provided by (used in) financing activities 1,409 (866 ) 1,050 1,385 (4,303 ) (1,325 ) Effect of currency on cash — — — 8 — 8 Total increase (decrease) in cash 1 44 (3 ) 184 — 226 Cash at the beginning of the period — 26 7 235 — 268 Cash at the end of the period $ 1 $ 70 $ 4 $ 419 $ — $ 494 CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2015 Eaton Corporation plc Eaton Corporation Guarantors Other subsidiaries Consolidating adjustments Total Net cash provided by (used in) operating activities $ (85 ) $ (93 ) $ (23 ) $ 1,830 $ — $ 1,629 Investing activities Capital expenditures for property, plant and equipment — (68 ) (100 ) (200 ) — (368 ) Cash received from (paid for) acquisitions of businesses, net of cash acquired — — — (38 ) — (38 ) Sales (purchases) of short-term — — — 76 — 76 Investments in affiliates (1,482 ) — (1,176 ) (1,482 ) 4,140 — Loans to affiliates — (307 ) (39 ) (7,638 ) 7,984 — Repayments of loans from affiliates — 306 58 5,514 (5,878 ) — Proceeds from sale of businesses — — — 1 — 1 Other - net — (41 ) 33 (36 ) — (44 ) Net cash provided by (used in) investing activities (1,482 ) (110 ) (1,224 ) (3,803 ) 6,246 (373 ) Financing activities Proceeds from borrowings — — — 1 — 1 Payments on borrowings — (102 ) (301 ) (2 ) — (405 ) Proceeds from borrowings from affiliates 2,783 4,577 581 43 (7,984 ) — Payments on borrowings from affiliates (40 ) (4,617 ) (1,160 ) (61 ) 5,878 — Capital contributions from affiliates — 1,176 1,482 1,482 (4,140 ) — Other intercompany financing activities — (859 ) 644 215 — — Cash dividends paid (771 ) — — — — (771 ) Exercise of employee stock options 48 — — — — 48 Repurchase of shares (454 ) — — — — (454 ) Other - net — — — (8 ) — (8 ) Net cash provided by (used in) financing activities 1,566 175 1,246 1,670 (6,246 ) (1,589 ) Effect of currency on cash — — — (30 ) — (30 ) Total increase (decrease) in cash (1 ) (28 ) (1 ) (333 ) — (363 ) Cash at the beginning of the period 1 173 13 594 — 781 Cash at the end of the period $ — $ 145 $ 12 $ 261 $ — $ 418

BASIS OF PRESENTATION (Policies

BASIS OF PRESENTATION (Policies)	9 Months Ended
	Sep. 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 $36 and $35 within the Company's Condensed Consolidated Balance Sheets as of September 30, 2016 and December 31, 2015, respectively, from Other noncurrent assets to a reduction in Long-term debt.

ACQUISITION INTEGRATION CHARG22

ACQUISITION INTEGRATION CHARGES (Tables)	9 Months Ended
	Sep. 30, 2016
Acquisitions Integration Charges [Abstract]
Acquisition Integration Charges	A summary of these charges follows: Three months ended Nine months ended 2016 2015 2016 2015 Electrical Products $ 1 $ 5 $ 2 $ 17 Electrical Systems and Services — 3 1 10 Hydraulics — — — 2 Total business segments 1 8 3 29 Corporate — 2 — 4 Total acquisition integration charges before income taxes 1 10 3 33 Income taxes — 3 1 11 Total after income taxes $ 1 $ 7 $ 2 $ 22 Per ordinary share - diluted $ — $ 0.01 $ — $ 0.05

RESTRUCTURING CHARGES (Tables)

RESTRUCTURING CHARGES (Tables)	9 Months Ended
	Sep. 30, 2016
Restructuring and Related Activities [Abstract]
Restructuring Charges by Type	A summary of restructuring charges by type follows: Three months ended Nine months ended 2016 2015 2016 2015 Workforce reductions $ 18 $ 99 $ 95 $ 111 Plant closings and other 5 14 26 16 Total $ 23 $ 113 $ 121 $ 127
Restructuring Charges by Segment	A summary of restructuring charges by segment follows: Three months ended Nine months ended 2016 2015 2016 2015 Electrical Products $ 1 $ 11 $ 27 $ 12 Electrical Systems & Services 7 26 20 26 Hydraulics 10 25 44 34 Aerospace (1 ) 5 3 5 Vehicle 5 29 22 33 Corporate 1 17 5 17 Total $ 23 $ 113 $ 121 $ 127
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 95 26 121 Payments (89 ) (11 ) (100 ) Other adjustments (1 ) (14 ) (15 ) Balance at September 30, 2016 $ 59 $ 1 $ 60

GOODWILL (Tables)

GOODWILL (Tables)	9 Months Ended
	Sep. 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 Translation (24 ) (12 ) 2 (13 ) 2 (45 ) September 30, 2016 $ 6,618 $ 4,267 $ 1,261 $ 943 $ 345 $ 13,434

RETIRED BENEFIT PLANS (Tables)

RETIRED BENEFIT PLANS (Tables)	9 Months Ended
	Sep. 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 September 30 2016 2015 2016 2015 2016 2015 Service cost $ 28 $ 31 $ 16 $ 18 $ 1 $ 2 Interest cost 31 39 16 18 4 6 Expected return on plan assets (63 ) (65 ) (23 ) (25 ) (2 ) (2 ) Amortization 23 29 8 10 (2 ) — 19 34 17 21 1 6 Settlements 24 25 — — — — Total expense $ 43 $ 59 $ 17 $ 21 $ 1 $ 6 United States Non-United States Other postretirement Nine months ended September 30 2016 2015 2016 2015 2016 2015 Service cost $ 83 $ 92 $ 49 $ 55 $ 3 $ 5 Interest cost 94 117 48 54 13 18 Expected return on plan assets (188 ) (196 ) (71 ) (75 ) (5 ) (4 ) Amortization 69 89 25 30 (6 ) 1 58 102 51 64 5 20 Settlements and curtailments 63 58 — — — — Total expense $ 121 $ 160 $ 51 $ 64 $ 5 $ 20

EQUITY (Tables)

EQUITY (Tables)	9 Months Ended
	Sep. 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 (loss) 1,418 (1 ) 1,417 Other comprehensive income 42 — 42 Cash dividends paid (780 ) (2 ) (782 ) Issuance of shares under equity-based compensation plans - net 105 — 105 Repurchase of shares (567 ) — (567 ) Balance at September 30, 2016 $ 15,404 $ 42 $ 15,446
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 (57 ) 33 (35 ) (59 ) Amounts reclassified from Accumulated other comprehensive loss (income) — 99 2 101 Net current-period Other comprehensive income (loss) (57 ) 132 (33 ) 42 Balance at September 30, 2016 $ (2,549 ) $ (1,242 ) $ (30 ) $ (3,821 )
Reclassification Out of Accumulated Other Comprehensive Loss	The reclassifications out of Accumulated other comprehensive loss follow: Nine months ended September 30, 2016 Consolidated statements of income classification Amortization of defined benefit pensions and other postretirement benefits items Actuarial loss and prior service cost $ (151 ) 1 Tax benefit 52 Total, net of tax (99 ) Gains and (losses) on cash flow hedges Currency exchange contracts (3 ) Cost of products sold Tax benefit 1 Total, net of tax (2 ) Total reclassifications for the period $ (101 ) 1 These components of Accumulated other comprehensive loss are included in the computation of net periodic benefit cost. See Note 7 for additional information about 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 Nine months ended (Shares in millions) 2016 2015 2016 2015 Net income attributable to Eaton ordinary shareholders $ 523 $ 446 $ 1,418 $ 1,447 Weighted-average number of ordinary shares outstanding - diluted 455.6 466.4 457.9 468.5 Less dilutive effect of equity-based compensation 1.7 1.3 1.4 1.7 Weighted-average number of ordinary shares outstanding - basic 453.9 465.1 456.5 466.8 Net income per share attributable to Eaton ordinary shareholders Diluted $ 1.15 $ 0.96 $ 3.09 $ 3.09 Basic 1.15 0.96 3.10 3.10

FAIR VALUE MEASUREMENTS (Tables

FAIR VALUE MEASUREMENTS (Tables)	9 Months Ended
	Sep. 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 September 30, 2016 Cash $ 494 $ 494 $ — $ — Short-term investments 213 213 — — Net derivative contracts 148 — 148 — Long-term debt converted to floating interest rates by interest rate swaps - net (172 ) — (172 ) — 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 INSTRUME28

DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES (Tables)	9 Months Ended
	Sep. 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 September 30, 2016 Derivatives designated as hedges Fixed-to-floating interest rate swaps $ 3,765 $ — $ 172 $ — $ — Fair value 1 month to 19 years Forward starting floating-to-fixed interest rate swaps 450 — — — 18 Cash flow 12 years Currency exchange contracts 826 5 1 19 14 Cash flow 1 to 36 months Total $ 5 $ 173 $ 19 $ 32 Derivatives not designated as hedges Currency exchange contracts $ 3,991 $ 34 $ — $ 15 $ — 1 to 24 months Commodity contracts 41 2 — 1 to 12 months Total $ 36 $ — $ 15 $ — 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 $ 1 $ — Interest expense - net $ — $ — Currency exchange contracts (3 ) 6 Cost of products sold (4 ) 5 Total $ (2 ) $ 6 $ (4 ) $ 5 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 Nine months ended Nine months ended 2016 2015 2016 2015 Derivatives designated as cash flow hedges Forward starting floating-to-fixed interest rate swaps $ (18 ) $ — Interest expense - net $ — $ — Currency exchange contracts (35 ) 16 Cost of products sold (3 ) 11 Total $ (53 ) $ 16 $ (3 ) $ 11
Amounts recognized in Net Income	Amounts recognized in net income follow: Three months ended Nine months ended 2016 2015 2016 2015 Derivatives designated as fair value hedges Fixed-to-floating interest rate swaps $ (28 ) $ 65 $ 78 $ 62 Related long-term debt converted to floating interest rates by interest rate swaps 28 (65 ) (78 ) (62 ) $ — $ — $ — $ —

INVENTORY (Tables)

INVENTORY (Tables)	9 Months Ended
	Sep. 30, 2016
Inventory Disclosure [Abstract]
Components of Inventory	The components of inventory follow: September 30, December 31, Raw materials $ 910 $ 885 Work-in-process 431 412 Finished goods 1,083 1,131 Inventory at FIFO 2,424 2,428 Excess of FIFO over LIFO cost (96 ) (105 ) Total inventory $ 2,328 $ 2,323

BUSINESS SEGMENT INFORMATION (T

BUSINESS SEGMENT INFORMATION (Tables)	9 Months Ended
	Sep. 30, 2016
Segment Reporting [Abstract]
Business Segment Information	Three months ended Nine months ended 2016 2015 2016 2015 Net sales Electrical Products $ 1,767 $ 1,771 $ 5,231 $ 5,246 Electrical Systems and Services 1,436 1,487 4,207 4,437 Hydraulics 562 599 1,702 1,907 Aerospace 436 449 1,328 1,367 Vehicle 786 897 2,412 2,841 Total net sales $ 4,987 $ 5,203 $ 14,880 $ 15,798 Segment operating profit Electrical Products $ 331 $ 322 $ 924 $ 858 Electrical Systems and Services 197 164 534 573 Hydraulics 61 44 161 184 Aerospace 88 79 251 233 Vehicle 122 136 377 490 Total segment operating profit 799 745 2,247 2,338 Corporate Amortization of intangible assets (99 ) (102 ) (297 ) (306 ) Interest expense - net (59 ) (59 ) (173 ) (175 ) Pension and other postretirement benefits expense (18 ) (38 ) (45 ) (99 ) Other corporate expense - net (50 ) (59 ) (164 ) (168 ) Income before income taxes 573 487 1,568 1,590 Income tax expense 51 42 151 143 Net income 522 445 1,417 1,447 Less net loss for noncontrolling interests 1 1 1 — Net income attributable to Eaton ordinary shareholders $ 523 $ 446 $ 1,418 $ 1,447

CONDENSED CONSOLIDATING FINAN31

CONDENSED CONSOLIDATING FINANCIAL STATEMENTS (Tables)	9 Months Ended
	Sep. 30, 2016
Condensed Consolidating Financial Information [Abstract]
Condensed Consolidating Financial Statements	CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2016 Eaton Corporation plc Eaton Corporation Guarantors Other subsidiaries Consolidating adjustments Total Net sales $ — $ 1,660 $ 1,583 $ 3,040 $ (1,296 ) $ 4,987 Cost of products sold — 1,329 1,162 2,173 (1,293 ) 3,371 Selling and administrative expense 2 330 197 324 — 853 Research and development expense — 59 43 44 — 146 Interest expense (income) - net — 59 4 (3 ) (1 ) 59 Other expense (income) - net (1 ) 18 — (32 ) — (15 ) Equity in loss (earnings) of subsidiaries, net of tax (628 ) (173 ) (895 ) (219 ) 1,915 — Intercompany expense (income) - net 104 (47 ) 336 (393 ) — — Income (loss) before income taxes 523 85 736 1,146 (1,917 ) 573 Income tax expense (benefit) — (11 ) 10 53 (1 ) 51 Net income (loss) 523 96 726 1,093 (1,916 ) 522 Less net loss (income) for noncontrolling interests — — — — 1 1 Net income (loss) attributable to Eaton ordinary shareholders $ 523 $ 96 $ 726 $ 1,093 $ (1,915 ) $ 523 Other comprehensive income (loss) $ 24 $ 24 $ 29 $ 2 $ (55 ) $ 24 Total comprehensive income (loss) attributable to Eaton ordinary shareholders $ 547 $ 120 $ 755 $ 1,095 $ (1,970 ) $ 547 CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2015 Eaton Corporation plc Eaton Corporation Guarantors Other subsidiaries Consolidating adjustments Total Net sales $ — $ 1,755 $ 1,664 $ 3,105 $ (1,321 ) $ 5,203 Cost of products sold — 1,380 1,269 2,265 (1,317 ) 3,597 Selling and administrative expense 2 375 191 339 — 907 Research and development expense — 65 51 40 — 156 Interest expense (income) - net — 54 5 (3 ) 3 59 Other expense (income) - net — 11 3 (17 ) — (3 ) Equity in loss (earnings) of subsidiaries, net of tax (534 ) (264 ) (888 ) (64 ) 1,750 — Intercompany expense (income) - net 86 (54 ) 258 (290 ) — — Income (loss) before income taxes 446 188 775 835 (1,757 ) 487 Income tax expense (benefit) 17 (15 ) 38 2 42 Net income (loss) 446 171 790 797 (1,759 ) 445 Less net loss (income) for noncontrolling interests — — — 1 — 1 Net income (loss) attributable to Eaton ordinary shareholders $ 446 $ 171 $ 790 $ 798 $ (1,759 ) $ 446 Other comprehensive income (loss) $ (312 ) $ (24 ) $ (305 ) $ (411 ) $ 740 $ (312 ) Total comprehensive income (loss) attributable to Eaton ordinary shareholders $ 134 $ 147 $ 485 $ 387 $ (1,019 ) $ 134 CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2016 Eaton Corporation plc Eaton Corporation Guarantors Other subsidiaries Consolidating adjustments Total Net sales $ — $ 4,842 $ 4,793 $ 8,983 $ (3,738 ) $ 14,880 Cost of products sold — 3,788 3,554 6,478 (3,739 ) 10,081 Selling and administrative expense 6 1,048 583 1,005 — 2,642 Research and development expense — 176 138 130 — 444 Interest expense (income) - net — 169 13 (13 ) 4 173 Other expense (income) - net (1 ) 34 (3 ) (58 ) — (28 ) Equity in loss (earnings) of subsidiaries, net of tax (1,726 ) (495 ) (2,384 ) (434 ) 5,039 — Intercompany expense (income) - net 303 (135 ) 913 (1,081 ) — — Income (loss) before income taxes 1,418 257 1,979 2,956 (5,042 ) 1,568 Income tax expense (benefit) — 9 24 119 (1 ) 151 Net income (loss) 1,418 248 1,955 2,837 (5,041 ) 1,417 Less net loss (income) for noncontrolling interests — — — (2 ) 3 1 Net income (loss) attributable to Eaton ordinary shareholders $ 1,418 $ 248 $ 1,955 $ 2,835 $ (5,038 ) $ 1,418 Other comprehensive income (loss) $ 42 $ 68 $ 54 $ (21 ) $ (101 ) $ 42 Total comprehensive income (loss) attributable to Eaton ordinary shareholders $ 1,460 $ 316 $ 2,009 $ 2,814 $ (5,139 ) $ 1,460 CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2015 Eaton Corporation plc Eaton Corporation Guarantors Other subsidiaries Consolidating adjustments Total Net sales $ — $ 5,263 $ 5,065 $ 9,469 $ (3,999 ) $ 15,798 Cost of products sold — 4,123 3,837 6,864 (3,959 ) 10,865 Selling and administrative expense 6 1,120 539 1,058 — 2,723 Research and development expense — 202 145 125 — 472 Interest expense (income) - net — 166 16 (10 ) 3 175 Other expense (income) - net — 17 (5 ) (39 ) — (27 ) Equity in loss (earnings) of subsidiaries, net of tax (1,698 ) (529 ) (2,403 ) (315 ) 4,945 — Intercompany expense (income) - net 245 (362 ) 1,010 (893 ) — — Income (loss) before income taxes 1,447 526 1,926 2,679 (4,988 ) 1,590 Income tax expense (benefit) — 36 (32 ) 154 (15 ) 143 Net income (loss) 1,447 490 1,958 2,525 (4,973 ) 1,447 Less net loss (income) for noncontrolling interests — — — (1 ) 1 — Net income (loss) attributable to Eaton ordinary shareholders $ 1,447 $ 490 $ 1,958 $ 2,524 $ (4,972 ) $ 1,447 Other comprehensive income (loss) $ (716 ) $ 39 $ (691 ) $ (875 ) $ 1,527 $ (716 ) Total comprehensive income (loss) attributable to Eaton $ 731 $ 529 $ 1,267 $ 1,649 $ (3,445 ) $ 731 CONDENSED CONSOLIDATING BALANCE SHEETS SEPTEMBER 30, 2016 Eaton Corporation plc Eaton Corporation Guarantors Other subsidiaries Consolidating adjustments Total Assets Current assets Cash $ 1 $ 70 $ 4 $ 419 $ — $ 494 Short-term investments — — — 213 — 213 Accounts receivable - net — 510 1,072 2,077 — 3,659 Intercompany accounts receivable 2 637 4,149 3,484 (8,272 ) — Inventory — 365 647 1,395 (79 ) 2,328 Prepaid expenses and other current assets — 107 40 219 27 393 Total current assets 3 1,689 5,912 7,807 (8,324 ) 7,087 Property, plant and equipment - net — 863 712 1,931 — 3,506 Other noncurrent assets Goodwill — 1,355 6,264 5,815 — 13,434 Other intangible assets — 172 3,481 2,036 — 5,689 Deferred income taxes — 987 — 231 (806 ) 412 Investment in subsidiaries 32,690 13,491 72,562 12,194 (130,937 ) — Intercompany loans receivable — 7,614 2,182 56,101 (65,897 ) — Other assets — 603 129 377 — 1,109 Total assets $ 32,693 $ 26,774 $ 91,242 $ 86,492 $ (205,964 ) $ 31,237 Liabilities and shareholders’ equity Current liabilities Short-term debt $ — $ — $ — $ 1 $ — $ 1 Current portion of long-term debt — 251 299 — — 550 Accounts payable — 415 259 1,116 — 1,790 Intercompany accounts payable 194 3,966 2,982 1,130 (8,272 ) — Accrued compensation — 85 51 252 — 388 Other current liabilities 1 630 297 939 (1 ) 1,866 Total current liabilities 195 5,347 3,888 3,438 (8,273 ) 4,595 Noncurrent liabilities Long-term debt — 6,889 971 16 5 7,881 Pension liabilities — 605 168 759 — 1,532 Other postretirement benefits liabilities — 237 114 78 — 429 Deferred income taxes — — 771 401 (806 ) 366 Intercompany loans payable 17,094 2,377 44,900 1,526 (65,897 ) — Other noncurrent liabilities — 344 214 430 — 988 Total noncurrent liabilities 17,094 10,452 47,138 3,210 (66,698 ) 11,196 Shareholders’ equity Eaton shareholders' equity 15,404 10,975 40,216 79,807 (130,998 ) 15,404 Noncontrolling interests — — — 37 5 42 Total equity 15,404 10,975 40,216 79,844 (130,993 ) 15,446 Total liabilities and equity $ 32,693 $ 26,774 $ 91,242 $ 86,492 $ (205,964 ) $ 31,237 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 12,883 60,139 10,046 (112,695 ) — Intercompany loans receivable — 8,641 1,573 44,835 (55,049 ) — Other assets — 492 122 346 — 960 Total assets $ 29,628 $ 27,313 $ 78,090 $ 72,297 $ (176,332 ) $ 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 10,537 36,566 65,653 (112,756 ) 15,186 Noncontrolling interests — — — 37 8 45 Total equity 15,186 10,537 36,566 65,690 (112,748 ) 15,231 Total liabilities and equity $ 29,628 $ 27,313 $ 78,090 $ 72,297 $ (176,332 ) $ 30,996 CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2016 Eaton Corporation plc Eaton Corporation Guarantors Other subsidiaries Consolidating adjustments Total Net cash provided by (used in) operating activities $ (158 ) $ (29 ) $ (283 ) $ 2,384 $ — $ 1,914 Investing activities Capital expenditures for property, plant and equipment — (62 ) (75 ) (209 ) — (346 ) Cash received from (paid for) acquisitions of businesses, net of cash acquired — — 1 — — 1 Sales (purchases) of short-term investments - net — — 2 (31 ) — (29 ) Investments in affiliates (1,250 ) — (120 ) (1,370 ) 2,740 — Return of investments in affiliates — — 47 — (47 ) — Loans to affiliates — (287 ) (655 ) (6,457 ) 7,399 — Repayments of loans from affiliates — 1,288 — 4,501 (5,789 ) — Other - net — — 30 (27 ) — 3 Net cash provided by (used in) investing activities (1,250 ) 939 (770 ) (3,593 ) 4,303 (371 ) Financing activities Proceeds from borrowings — 22 611 — — 633 Payments on borrowings — (408 ) (240 ) (18 ) — (666 ) Proceeds from borrowings from affiliates 3,333 2,815 1,051 200 (7,399 ) — Payments on borrowings from affiliates (637 ) (3,453 ) (1,658 ) (41 ) 5,789 — Capital contributions from affiliates — — 1,370 1,370 (2,740 ) — Return of capital to affiliates — — — (47 ) 47 — Other intercompany financing activities — 158 (81 ) (77 ) — — Cash dividends paid (780 ) — — — — (780 ) Exercise of employee stock options 60 — — — — 60 Repurchase of shares (567 ) — — — — (567 ) Excess tax benefit from equity-based compensation — — — — — — Other - net — — (3 ) (2 ) — (5 ) Net cash provided by (used in) financing activities 1,409 (866 ) 1,050 1,385 (4,303 ) (1,325 ) Effect of currency on cash — — — 8 — 8 Total increase (decrease) in cash 1 44 (3 ) 184 — 226 Cash at the beginning of the period — 26 7 235 — 268 Cash at the end of the period $ 1 $ 70 $ 4 $ 419 $ — $ 494 CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2015 Eaton Corporation plc Eaton Corporation Guarantors Other subsidiaries Consolidating adjustments Total Net cash provided by (used in) operating activities $ (85 ) $ (93 ) $ (23 ) $ 1,830 $ — $ 1,629 Investing activities Capital expenditures for property, plant and equipment — (68 ) (100 ) (200 ) — (368 ) Cash received from (paid for) acquisitions of businesses, net of cash acquired — — — (38 ) — (38 ) Sales (purchases) of short-term — — — 76 — 76 Investments in affiliates (1,482 ) — (1,176 ) (1,482 ) 4,140 — Loans to affiliates — (307 ) (39 ) (7,638 ) 7,984 — Repayments of loans from affiliates — 306 58 5,514 (5,878 ) — Proceeds from sale of businesses — — — 1 — 1 Other - net — (41 ) 33 (36 ) — (44 ) Net cash provided by (used in) investing activities (1,482 ) (110 ) (1,224 ) (3,803 ) 6,246 (373 ) Financing activities Proceeds from borrowings — — — 1 — 1 Payments on borrowings — (102 ) (301 ) (2 ) — (405 ) Proceeds from borrowings from affiliates 2,783 4,577 581 43 (7,984 ) — Payments on borrowings from affiliates (40 ) (4,617 ) (1,160 ) (61 ) 5,878 — Capital contributions from affiliates — 1,176 1,482 1,482 (4,140 ) — Other intercompany financing activities — (859 ) 644 215 — — Cash dividends paid (771 ) — — — — (771 ) Exercise of employee stock options 48 — — — — 48 Repurchase of shares (454 ) — — — — (454 ) Other - net — — — (8 ) — (8 ) Net cash provided by (used in) financing activities 1,566 175 1,246 1,670 (6,246 ) (1,589 ) Effect of currency on cash — — — (30 ) — (30 ) Total increase (decrease) in cash (1 ) (28 ) (1 ) (333 ) — (363 ) Cash at the beginning of the period 1 173 13 594 — 781 Cash at the end of the period $ — $ 145 $ 12 $ 261 $ — $ 418

BASIS OF PRESENTATION (Details)

BASIS OF PRESENTATION (Details) - USD ($) $ in Millions	Sep. 30, 2016	Dec. 31, 2015
Debt [Member]
Reclassification of Debt Issuance Costs [Line Items]
Reclassification of debt issuance costs	$ 36	$ 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		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Acquisition integration charges [Line Items]
Acquisition integration charges	$ 1	$ 10	$ 3	$ 33
Income taxes	0	3	1	11
Total after income taxes	$ 1	$ 7	$ 2	$ 22
Per ordinary share - diluted (dollars per share)	$ 0	$ 0.01	$ 0	$ 0.05
Electrical Products [Member]
Acquisition integration charges [Line Items]
Acquisition integration charges	$ 1	$ 5	$ 2	$ 17
Electrical Systems and Services [Member]
Acquisition integration charges [Line Items]
Acquisition integration charges	0	3	1	10
Hydraulics [Member]
Acquisition integration charges [Line Items]
Acquisition integration charges	0	0	0	2
Total business segments [Member]
Acquisition integration charges [Line Items]
Acquisition integration charges	1	8	3	29
Corporate [Member]
Acquisition integration charges [Line Items]
Acquisition integration charges	$ 0	$ 2	$ 0	$ 4

RESTRUCTURING CHARGES - Narrati

RESTRUCTURING CHARGES - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015	Dec. 31, 2017	Dec. 31, 2016
Restructuring Cost and Reserve [Line Items]
Restructuring charges	$ 23	$ 113	$ 121	$ 127	$ 129
Employee Severance [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring charges			$ 95		$ 112
Scenario, Forecast [Member] | Employee Severance [Member]
Restructuring Cost and Reserve [Line Items]
Charges associated with restructuring activities						$ 180	$ 145

RESTRUCTURING CHARGES - Summary

RESTRUCTURING CHARGES - Summary of Restructuring Charges by Type (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
Restructuring and Related Activities [Abstract]
Workforce reductions	$ 18	$ 99	$ 95	$ 111
Plant closings and other	5	14	26	16
Total	$ 23	$ 113	$ 121	$ 127	$ 129

RESTRUCTURING CHARGES - Summa37

RESTRUCTURING CHARGES - Summary of Restructuring Charges by Segment (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
Restructuring Cost and Reserve [Line Items]
Restructuring charges	$ 23	$ 113	$ 121	$ 127	$ 129
Electrical Products [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring charges	1	11	27	12
Electrical Systems and Services [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring charges	7	26	20	26
Hydraulics [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring charges	10	25	44	34
Aerospace [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring charges	(1)	5	3	5
Vehicle [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring charges	5	29	22	33
Corporate, Non-Segment [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring charges	$ 1	$ 17	$ 5	$ 17

RESTRUCTURING CHARGES - Restruc

RESTRUCTURING CHARGES - Restructuring Roll Forward (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
Restructuring Reserve [Roll Forward]
Beginning balance			$ 54	$ 0	$ 0
Liability recognized	$ 23	$ 113	121	127	129
Payments			(100)		(62)
Other adjustments			(15)		(13)
Ending balance	60		60		54
Workforce reductions [Member]
Restructuring Reserve [Roll Forward]
Beginning balance			54	0	0
Liability recognized			95		112
Payments			(89)		(59)
Other adjustments			(1)		1
Ending balance	59		59		54
Plant closings and other [Member]
Restructuring Reserve [Roll Forward]
Beginning balance			0	$ 0	0
Liability recognized			26		17
Payments			(11)		(3)
Other adjustments			(14)		(14)
Ending balance	$ 1		$ 1		$ 0

GOODWILL (Details)

GOODWILL (Details) $ in Millions	9 Months Ended
	Sep. 30, 2016USD ($)
Goodwill [Roll Forward]
Beginning balance	$ 13,479
Translation	(45)
Ending balance	13,434
Electrical Products [Member]
Goodwill [Roll Forward]
Beginning balance	6,642
Translation	(24)
Ending balance	6,618
Electrical Systems and Services [Member]
Goodwill [Roll Forward]
Beginning balance	4,279
Translation	(12)
Ending balance	4,267
Hydraulics [Member]
Goodwill [Roll Forward]
Beginning balance	1,259
Translation	2
Ending balance	1,261
Aerospace [Member]
Goodwill [Roll Forward]
Beginning balance	956
Translation	(13)
Ending balance	943
Vehicle [Member]
Goodwill [Roll Forward]
Beginning balance	343
Translation	2
Ending balance	$ 345

DEBT (Details)

DEBT (Details) € in Millions, $ in Millions	Oct. 14, 2016USD ($)	Sep. 30, 2016EUR (€)	Sep. 30, 2016USD ($)
Senior Notes [Member]
Debt Instrument [Line Items]
Issuance of senior notes		€ 550	$ 615
Proceeds from issuance of senior notes		€ 544	$ 609
Senior Notes [Member] | Senior notes due 2024 [Member]
Debt Instrument [Line Items]
Debt Instrument, Interest Rate, Stated Percentage		0.75%	0.75%
Refinanced five-year revolving credit facility [Member]
Debt Instrument [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity			$ 750
Five-year revolving credit facility, expires October 14, 2021 [Member] | Subsequent Event [Member] | Scenario, Actual [Member]
Debt Instrument [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity	$ 750
Four-year revolving credit facility, expires October 3, 2018 [Member]
Debt Instrument [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity			500
Five-year revolving credit facility, expires October 3, 2019 [Member]
Debt Instrument [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity			750
Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity			$ 2,000

RETIRED BENEFIT PLANS (Details)

RETIRED BENEFIT PLANS (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
United States pension benefit expense [Member]
Retirement benefits plans expense
Service cost	$ 28	$ 31	$ 83	$ 92
Interest cost	31	39	94	117
Expected return on plan assets	(63)	(65)	(188)	(196)
Amortization	23	29	69	89
Total	19	34	58	102
Settlements and curtailments	24	25	63	58
Total expense	43	59	121	160
Non-United States pension benefit expense [Member]
Retirement benefits plans expense
Service cost	16	18	49	55
Interest cost	16	18	48	54
Expected return on plan assets	(23)	(25)	(71)	(75)
Amortization	8	10	25	30
Total	17	21	51	64
Settlements and curtailments	0	0	0	0
Total expense	17	21	51	64
Other postretirement benefits expense [Member]
Retirement benefits plans expense
Service cost	1	2	3	5
Interest cost	4	6	13	18
Expected return on plan assets	(2)	(2)	(5)	(4)
Amortization	(2)	0	(6)	1
Total	1	6	5	20
Settlements and curtailments	0	0	0	0
Total expense	$ 1	$ 6	$ 5	$ 20

LEGAL CONTINGENCIES (Details)

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

INCOME TAXES (Details)

INCOME TAXES (Details)	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Income Tax Disclosure [Abstract]
Effective tax rate	9.00%	9.00%	10.00%	9.00%

EQUITY - Changes in Shareholder

EQUITY - Changes in Shareholders's Equity (Details) - USD ($) shares in Millions, $ in Millions	3 Months Ended			9 Months Ended
	Sep. 30, 2016	Mar. 31, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Changes in Shareholders' equity
Beginning balance		$ 15,231		$ 15,231
Net income (loss)	$ 522		$ 445	1,417	$ 1,447
Other comprehensive income	24		$ (312)	42	$ (716)
Cash dividends paid				(782)
Issuance of shares under equity-based compensation plans - net				105
Repurchase of shares				(567)
Ending balance	15,446			15,446
Parent [Member]
Changes in Shareholders' equity
Beginning balance		15,186		15,186
Net income (loss)				1,418
Other comprehensive income				42
Cash dividends paid				(780)
Issuance of shares under equity-based compensation plans - net				105
Repurchase of shares				(567)
Ending balance	15,404			15,404
Noncontrolling Interest [Member]
Changes in Shareholders' equity
Beginning balance		$ 45		45
Net income (loss)				(1)
Other comprehensive income				0
Cash dividends paid				(2)
Issuance of shares under equity-based compensation plans - net				0
Repurchase of shares				0
Ending balance	$ 42			$ 42
2013 Program [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Number of shares authorized to be repurchased (in shares)	40			40
Ordinary shares purchased (in shares)		1.5	4.8		7.2
Changes in Shareholders' equity
Repurchase of shares		$ (82)	$ (284)		$ (454)
2016 Program [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Ordinary shares purchased (in shares)	3.7			7.7
Amount of shares repurchased (up to)	$ 2,500			$ 2,500
Changes in Shareholders' equity
Repurchase of shares	$ (243)			$ (485)

EQUITY - Changes in Accumulated

EQUITY - Changes in Accumulated Other Comprehensive (Loss) Income (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Amounts reclassified from Accumulated other comprehensive loss (income)			$ 101
Net current-period Other comprehensive income (loss)	$ 24	$ (312)	42	$ (716)
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			(57)
Amounts reclassified from Accumulated other comprehensive loss (income)			0
Net current-period Other comprehensive income (loss)			(57)
Ending balance	(2,549)		(2,549)
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			33
Amounts reclassified from Accumulated other comprehensive loss (income)			99
Net current-period Other comprehensive income (loss)			132
Ending balance	(1,242)		(1,242)
Cash flow hedges [Member]
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance			3
Other comprehensive (loss) income before reclassifications			(35)
Amounts reclassified from Accumulated other comprehensive loss (income)			2
Net current-period Other comprehensive income (loss)			(33)
Ending balance	(30)		(30)
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			(59)
Amounts reclassified from Accumulated other comprehensive loss (income)			101
Net current-period Other comprehensive income (loss)			42
Ending balance	$ (3,821)		$ (3,821)

EQUITY - Reclassifications Out

EQUITY - Reclassifications Out of Accumulated Other Comprehensive Loss (Details) $ in Millions	9 Months Ended
	Sep. 30, 2016USD ($)
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Actuarial loss and prior service cost	$ (151)	[1]
Tax benefit	52
Total, net of tax	(99)
Tax benefit	1
Total, net of tax	(2)
Total reclassifications for the period	(101)
Cost of products sold [Member] | Currency exchange contracts [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Currency exchange contracts	$ (3)
[1]	These components of Accumulated other comprehensive loss are included in the computation of net periodic benefit cost. See Note 7 for additional information about 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		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Calculation of net income per ordinary share attributable to ordinary shareholders
Net income attributable to Eaton ordinary shareholders	$ 523	$ 446	$ 1,418	$ 1,447
Weighted-average number of ordinary shares outstanding - diluted (shares)	455.6	466.4	457.9	468.5
Less dilutive effect of equity-based compensation (shares)	1.7	1.3	1.4	1.7
Weighted-average number of ordinary shares outstanding - basic (shares)	453.9	465.1	456.5	466.8
Net income per share attributable to Eaton ordinary shareholders
Diluted (usd per share)	$ 1.15	$ 0.96	$ 3.09	$ 3.09
Basic (usd per share)	$ 1.15	$ 0.96	$ 3.10	$ 3.10
Stock options excluded from calculation of diluted net income per ordinary share (shares)	1.5	1.8	1.8	1.3

FAIR VALUE MEASUREMENTS - Summa

FAIR VALUE MEASUREMENTS - Summary of Financial Instruments at Fair Value (Details) - USD ($) $ in Millions	Sep. 30, 2016	Dec. 31, 2015	Sep. 30, 2015	Dec. 31, 2014
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items]
Cash	$ 494	$ 268	$ 418	$ 781
Short-term investments	213	177
Net derivative contracts	148	86
Long-term debt converted to floating interest rates by interest rate swaps - net	(172)	(94)
Level 1 [Member]
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items]
Cash	494	268
Short-term investments	213	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	148	86
Long-term debt converted to floating interest rates by interest rate swaps - net	(172)	(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	Sep. 30, 2016	Dec. 31, 2015
Other Fair Value Measurements [Line Items]
Carrying value of long-term debt and current portion of long-term debt	$ 8,431	$ 7,988
Level 2 [Member]
Other Fair Value Measurements [Line Items]
Fair value of long-term debt and current portion of long-term debt	$ 9,050	$ 8,231

DERIVATIVE FINANCIAL INSTRUME50

DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES - Derivative Financial Instrument Recognized in the Consolidated Balance sheet (Details) - USD ($) $ in Millions	9 Months Ended	12 Months Ended
	Sep. 30, 2016	Dec. 31, 2015
Derivatives, Fair Value [Line Items]
Foreign Currency Note Payable, Noncurrent, after-tax	$ 99	$ 83
Foreign Currency Note Payable, Noncurrent, pre-tax	$ 607
Derivatives not designated as hedges
Percentage of intercompany balance sheet exposure	100.00%
Other current assets [Member]
Derivatives designated as hedges
Derivative asset designated as hedging instrument	$ 5	18
Derivatives not designated as hedges
Derivative instruments not designated as hedging instruments, asset, at fair value	36	27
Other noncurrent assets [Member]
Derivatives designated as hedges
Derivative asset designated as hedging instrument	173	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	19	8
Derivatives not designated as hedges
Derivative instruments not designated as hedging instruments, liability, at fair value	15	40
Other noncurrent liabilities [Member]
Derivatives designated as hedges
Derivative liability designated as hedging instrument	32	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	34	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	15	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	0	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	172	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	450	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	18	0
Derivatives designated as hedges [Member] | Cash Flow Hedging [Member] | Currency exchange contracts [Member]
Derivatives designated as hedges
Notional amount	826	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	5	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	19	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	3,991	$ 4,198
Derivatives not designated as hedges [Member] | Commodity contracts [Member]
Derivatives designated as hedges
Notional amount	$ 41
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	19 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 INSTRUME51

DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES - Amounts Recognized in Accumulated Other Comprehensive Income (Details) - Cash flow hedges [Member] - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 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	$ 1	$ 0	$ (18)	$ 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	(3)	6	(35)	16
Gain (loss) reclassified from Accumulated other comprehensive loss	(4)	5	(3)	11
Cost of products sold or Interest expense - net [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) recognized in other comprehensive (loss) income	(2)	6	(53)	16
Gain (loss) reclassified from Accumulated other comprehensive loss	$ (4)	$ 5	$ (3)	$ 11

DERIVATIVE FINANCIAL INSTRUME52

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		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 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	(28)	65	78	62
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	$ 28	$ (65)	$ (78)	$ (62)

INVENTORY (Details)

INVENTORY (Details) - USD ($) $ in Millions	Sep. 30, 2016	Dec. 31, 2015
Inventory Disclosure [Abstract]
Raw materials	$ 910	$ 885
Work-in-process	431	412
Finished goods	1,083	1,131
Inventory at FIFO	2,424	2,428
Excess of FIFO over LIFO cost	(96)	(105)
Total inventory	$ 2,328	$ 2,323

BUSINESS SEGMENT INFORMATION (D

BUSINESS SEGMENT INFORMATION (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Business Segment Information
Net sales	$ 4,987	$ 5,203	$ 14,880	$ 15,798
Corporate
Interest expense - net	59	59	173	175
Pension and other postretirement benefits expense			(177)	(244)
Other corporate expense - net	(15)	(3)	(28)	(27)
Income before income taxes	573	487	1,568	1,590
Income tax expense	51	42	151	143
Net income	522	445	1,417	1,447
Less net loss for noncontrolling interests	1	1	1	0
Net income attributable to Eaton ordinary shareholders	523	446	1,418	1,447
Total business segments [Member]
Business Segment Information
Net sales	4,987	5,203	14,880	15,798
Segment operating profit	799	745	2,247	2,338
Total business segments [Member] | Electrical Products [Member]
Business Segment Information
Net sales	1,767	1,771	5,231	5,246
Segment operating profit	331	322	924	858
Total business segments [Member] | Electrical Systems and Services [Member]
Business Segment Information
Net sales	1,436	1,487	4,207	4,437
Segment operating profit	197	164	534	573
Total business segments [Member] | Hydraulics [Member]
Business Segment Information
Net sales	562	599	1,702	1,907
Segment operating profit	61	44	161	184
Total business segments [Member] | Aerospace [Member]
Business Segment Information
Net sales	436	449	1,328	1,367
Segment operating profit	88	79	251	233
Total business segments [Member] | Vehicle [Member]
Business Segment Information
Net sales	786	897	2,412	2,841
Segment operating profit	122	136	377	490
Corporate [Member]
Corporate
Amortization of intangible assets	(99)	(102)	(297)	(306)
Interest expense - net	(59)	(59)	(173)	(175)
Pension and other postretirement benefits expense	(18)	(38)	(45)	(99)
Other corporate expense - net	$ (50)	$ (59)	$ (164)	$ (168)

CONDENSED CONSOLIDATING FINAN55

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 FINAN56

CONDENSED CONSOLIDATING FINANCIAL STATEMENTS - Consolidating Statements of Comprehensive Income (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Consolidating Statements of Comprehensive Income, Captions [Line Items]
Net sales	$ 4,987	$ 5,203	$ 14,880	$ 15,798
Cost of products sold	3,371	3,597	10,081	10,865
Selling and administrative expense	853	907	2,642	2,723
Research and development expense	146	156	444	472
Interest expense (income) - net	59	59	173	175
Other expense (income) - net	(15)	(3)	(28)	(27)
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	573	487	1,568	1,590
Income tax expense (benefit)	51	42	151	143
Net income	522	445	1,417	1,447
Less net loss (income) for noncontrolling interests	1	1	1	0
Net income attributable to Eaton ordinary shareholders	523	446	1,418	1,447
Other comprehensive income	24	(312)	42	(716)
Total comprehensive income (loss) attributable to Eaton ordinary shareholders	547	134	1,460	731
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	6	6
Research and development expense	0	0	0	0
Interest expense (income) - net	0	0	0	0
Other expense (income) - net	(1)	0	(1)	0
Equity in loss (earnings) of subsidiaries, net of tax	(628)	(534)	(1,726)	(1,698)
Intercompany expense (income) - net	104	86	303	245
Income before income taxes	523	446	1,418	1,447
Income tax expense (benefit)	0		0	0
Net income	523	446	1,418	1,447
Less net loss (income) for noncontrolling interests	0	0	0	0
Net income attributable to Eaton ordinary shareholders	523	446	1,418	1,447
Other comprehensive income	24	(312)	42	(716)
Total comprehensive income (loss) attributable to Eaton ordinary shareholders	547	134	1,460	731
Eaton Corporation [Member]
Consolidating Statements of Comprehensive Income, Captions [Line Items]
Net sales	1,660	1,755	4,842	5,263
Cost of products sold	1,329	1,380	3,788	4,123
Selling and administrative expense	330	375	1,048	1,120
Research and development expense	59	65	176	202
Interest expense (income) - net	59	54	169	166
Other expense (income) - net	18	11	34	17
Equity in loss (earnings) of subsidiaries, net of tax	(173)	(264)	(495)	(529)
Intercompany expense (income) - net	(47)	(54)	(135)	(362)
Income before income taxes	85	188	257	526
Income tax expense (benefit)	(11)	17	9	36
Net income	96	171	248	490
Less net loss (income) for noncontrolling interests	0	0	0	0
Net income attributable to Eaton ordinary shareholders	96	171	248	490
Other comprehensive income	24	(24)	68	39
Total comprehensive income (loss) attributable to Eaton ordinary shareholders	120	147	316	529
Other subsidiaries [Member]
Consolidating Statements of Comprehensive Income, Captions [Line Items]
Net sales	3,040	3,105	8,983	9,469
Cost of products sold	2,173	2,265	6,478	6,864
Selling and administrative expense	324	339	1,005	1,058
Research and development expense	44	40	130	125
Interest expense (income) - net	(3)	(3)	(13)	(10)
Other expense (income) - net	(32)	(17)	(58)	(39)
Equity in loss (earnings) of subsidiaries, net of tax	(219)	(64)	(434)	(315)
Intercompany expense (income) - net	(393)	(290)	(1,081)	(893)
Income before income taxes	1,146	835	2,956	2,679
Income tax expense (benefit)	53	38	119	154
Net income	1,093	797	2,837	2,525
Less net loss (income) for noncontrolling interests	0	1	(2)	(1)
Net income attributable to Eaton ordinary shareholders	1,093	798	2,835	2,524
Other comprehensive income	2	(411)	(21)	(875)
Total comprehensive income (loss) attributable to Eaton ordinary shareholders	1,095	387	2,814	1,649
Guarantors
Consolidating Statements of Comprehensive Income, Captions [Line Items]
Net sales	1,583	1,664	4,793	5,065
Cost of products sold	1,162	1,269	3,554	3,837
Selling and administrative expense	197	191	583	539
Research and development expense	43	51	138	145
Interest expense (income) - net	4	5	13	16
Other expense (income) - net	0	3	(3)	(5)
Equity in loss (earnings) of subsidiaries, net of tax	(895)	(888)	(2,384)	(2,403)
Intercompany expense (income) - net	336	258	913	1,010
Income before income taxes	736	775	1,979	1,926
Income tax expense (benefit)	10	(15)	24	(32)
Net income	726	790	1,955	1,958
Less net loss (income) for noncontrolling interests	0	0	0	0
Net income attributable to Eaton ordinary shareholders	726	790	1,955	1,958
Other comprehensive income	29	(305)	54	(691)
Total comprehensive income (loss) attributable to Eaton ordinary shareholders	755	485	2,009	1,267
Consolidating adjustments [Member]
Consolidating Statements of Comprehensive Income, Captions [Line Items]
Net sales	(1,296)	(1,321)	(3,738)	(3,999)
Cost of products sold	(1,293)	(1,317)	(3,739)	(3,959)
Selling and administrative expense	0	0	0	0
Research and development expense	0	0	0	0
Interest expense (income) - net	(1)	3	4	3
Other expense (income) - net	0	0	0	0
Equity in loss (earnings) of subsidiaries, net of tax	1,915	1,750	5,039	4,945
Intercompany expense (income) - net	0	0	0	0
Income before income taxes	(1,917)	(1,757)	(5,042)	(4,988)
Income tax expense (benefit)	(1)	2	(1)	(15)
Net income	(1,916)	(1,759)	(5,041)	(4,973)
Less net loss (income) for noncontrolling interests	1	0	3	1
Net income attributable to Eaton ordinary shareholders	(1,915)	(1,759)	(5,038)	(4,972)
Other comprehensive income	(55)	740	(101)	1,527
Total comprehensive income (loss) attributable to Eaton ordinary shareholders	$ (1,970)	$ (1,019)	$ (5,139)	$ (3,445)

CONDENSED CONSOLIDATING FINAN57

CONDENSED CONSOLIDATING FINANCIAL STATEMENTS - Condensed Consolidating Balance Sheets (Details) - USD ($) $ in Millions	Sep. 30, 2016	Dec. 31, 2015	Sep. 30, 2015	Dec. 31, 2014
Current assets
Cash	$ 494	$ 268	$ 418	$ 781
Short-term investments	213	177
Accounts receivable - net	3,659	3,479
Intercompany accounts receivable	0	0
Inventory	2,328	2,323
Prepaid expenses and other current assets	393	369
Total current assets	7,087	6,616
Property, plant and equipment - net	3,506	3,565
Other noncurrent assets
Goodwill	13,434	13,479
Other intangible assets	5,689	6,014
Deferred income taxes	412	362
Investment in subsidiaries	0	0
Intercompany loans receivables	0	0
Other assets	1,109	960
Total assets	31,237	30,996
Liabilities and shareholders’ equity
Short-term debt	1	426
Current portion of long-term debt	550	242
Accounts payable	1,790	1,758
Intercompany accounts payable	0	0
Accrued compensation	388	366
Other current liabilities	1,866	1,833
Total current liabilities	4,595	4,625
Noncurrent liabilities
Long-term debt	7,881	7,746
Pension liabilities	1,532	1,586
Other postretirement benefits liabilities	429	440
Deferred income taxes	366	390
Intercompany loans payable	0	0
Other noncurrent liabilities	988	978
Total noncurrent liabilities	11,196	11,140
Shareholders’ equity
Eaton shareholders' equity	15,404	15,186
Noncontrolling interests	42	45
Total equity	15,446	15,231
Total liabilities and equity	31,237	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	(8,272)	(7,659)
Inventory	(79)	(80)
Prepaid expenses and other current assets	27	23
Total current assets	(8,324)	(7,716)
Property, plant and equipment - net	0	0
Other noncurrent assets
Goodwill	0	0
Other intangible assets	0	0
Deferred income taxes	(806)	(872)
Investment in subsidiaries	(130,937)	(112,695)
Intercompany loans receivables	(65,897)	(55,049)
Other assets	0	0
Total assets	(205,964)	(176,332)
Liabilities and shareholders’ equity
Short-term debt	0	0
Current portion of long-term debt	0	0
Accounts payable	0	0
Intercompany accounts payable	(8,272)	(7,659)
Accrued compensation	0	0
Other current liabilities	(1)	(5)
Total current liabilities	(8,273)	(7,664)
Noncurrent liabilities
Long-term debt	5	1
Pension liabilities	0	0
Other postretirement benefits liabilities	0	0
Deferred income taxes	(806)	(872)
Intercompany loans payable	(65,897)	(55,049)
Other noncurrent liabilities	0	0
Total noncurrent liabilities	(66,698)	(55,920)
Shareholders’ equity
Eaton shareholders' equity	(130,998)	(112,756)
Noncontrolling interests	5	8
Total equity	(130,993)	(112,748)
Total liabilities and equity	(205,964)	(176,332)
Non-Guarantor Subsidiaries [Member]
Current assets
Cash	419	235	261	594
Short-term investments	213	175
Accounts receivable - net	2,077	1,937
Intercompany accounts receivable	3,484	2,928
Inventory	1,395	1,395
Prepaid expenses and other current assets	219	229
Total current assets	7,807	6,899
Property, plant and equipment - net	1,931	1,885
Other noncurrent assets
Goodwill	5,815	5,860
Other intangible assets	2,036	2,208
Deferred income taxes	231	218
Investment in subsidiaries	12,194	10,046
Intercompany loans receivables	56,101	44,835
Other assets	377	346
Total assets	86,492	72,297
Liabilities and shareholders’ equity
Short-term debt	1	18
Current portion of long-term debt	0	1
Accounts payable	1,116	1,106
Intercompany accounts payable	1,130	1,183
Accrued compensation	252	236
Other current liabilities	939	875
Total current liabilities	3,438	3,419
Noncurrent liabilities
Long-term debt	16	17
Pension liabilities	759	782
Other postretirement benefits liabilities	78	77
Deferred income taxes	401	447
Intercompany loans payable	1,526	1,433
Other noncurrent liabilities	430	432
Total noncurrent liabilities	3,210	3,188
Shareholders’ equity
Eaton shareholders' equity	79,807	65,653
Noncontrolling interests	37	37
Total equity	79,844	65,690
Total liabilities and equity	86,492	72,297
Guarantors [Member]
Current assets
Cash	4	7	12	13
Short-term investments	0	2
Accounts receivable - net	1,072	1,030
Intercompany accounts receivable	4,149	3,888
Inventory	647	651
Prepaid expenses and other current assets	40	40
Total current assets	5,912	5,618
Property, plant and equipment - net	712	750
Other noncurrent assets
Goodwill	6,264	6,264
Other intangible assets	3,481	3,624
Deferred income taxes	0	0
Investment in subsidiaries	72,562	60,139
Intercompany loans receivables	2,182	1,573
Other assets	129	122
Total assets	91,242	78,090
Liabilities and shareholders’ equity
Short-term debt	0	0
Current portion of long-term debt	299	240
Accounts payable	259	260
Intercompany accounts payable	2,982	2,248
Accrued compensation	51	53
Other current liabilities	297	318
Total current liabilities	3,888	3,119
Noncurrent liabilities
Long-term debt	971	675
Pension liabilities	168	165
Other postretirement benefits liabilities	114	118
Deferred income taxes	771	815
Intercompany loans payable	44,900	36,432
Other noncurrent liabilities	214	200
Total noncurrent liabilities	47,138	38,405
Shareholders’ equity
Eaton shareholders' equity	40,216	36,566
Noncontrolling interests	0	0
Total equity	40,216	36,566
Total liabilities and equity	91,242	78,090
Eaton Corporation [Member]
Current assets
Cash	70	26	145	173
Short-term investments	0	0
Accounts receivable - net	510	512
Intercompany accounts receivable	637	842
Inventory	365	357
Prepaid expenses and other current assets	107	77
Total current assets	1,689	1,814
Property, plant and equipment - net	863	930
Other noncurrent assets
Goodwill	1,355	1,355
Other intangible assets	172	182
Deferred income taxes	987	1,016
Investment in subsidiaries	13,491	12,883
Intercompany loans receivables	7,614	8,641
Other assets	603	492
Total assets	26,774	27,313
Liabilities and shareholders’ equity
Short-term debt	0	408
Current portion of long-term debt	251	1
Accounts payable	415	392
Intercompany accounts payable	3,966	4,009
Accrued compensation	85	77
Other current liabilities	630	644
Total current liabilities	5,347	5,531
Noncurrent liabilities
Long-term debt	6,889	7,053
Pension liabilities	605	639
Other postretirement benefits liabilities	237	245
Deferred income taxes	0	0
Intercompany loans payable	2,377	2,962
Other noncurrent liabilities	344	346
Total noncurrent liabilities	10,452	11,245
Shareholders’ equity
Eaton shareholders' equity	10,975	10,537
Noncontrolling interests	0	0
Total equity	10,975	10,537
Total liabilities and equity	26,774	27,313
Eaton Corporation plc [Member]
Current assets
Cash	1	0	$ 0	$ 1
Short-term investments	0	0
Accounts receivable - net	0	0
Intercompany accounts receivable	2	1
Inventory	0	0
Prepaid expenses and other current assets	0	0
Total current assets	3	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	32,690	29,627
Intercompany loans receivables	0	0
Other assets	0	0
Total assets	32,693	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	194	219
Accrued compensation	0	0
Other current liabilities	1	1
Total current liabilities	195	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	17,094	14,222
Other noncurrent liabilities	0	0
Total noncurrent liabilities	17,094	14,222
Shareholders’ equity
Eaton shareholders' equity	15,404	15,186
Noncontrolling interests	0	0
Total equity	15,404	15,186
Total liabilities and equity	$ 32,693	$ 29,628

CONDENSED CONSOLIDATING FINAN58

CONDENSED CONSOLIDATING FINANCIAL STATEMENTS - Condensed Consolidating Statements of Cash Flows (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Condensed Consolidating Statements of Cash Flows, Captions [Line Items]
Net cash provided by (used in) operating activities	$ 1,914	$ 1,629
Investing activities
Capital expenditures for property, plant and equipment	(346)	(368)
Cash received from (paid for) acquisitions of businesses, net of cash acquired	1	(38)
Sales (purchases) of short-term investments - net	(29)	76
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	(44)
Net cash used in investing activities	(371)	(373)
Financing activities
Proceeds from borrowings	633	1
Payments on borrowings	(666)	(405)
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	(780)	(771)
Exercise of employee stock options	60	48
Repurchase of shares	(567)	(454)
Excess tax benefit from equity-based compensation	0
Other - net	(5)	(8)
Net cash used in financing activities	(1,325)	(1,589)
Effect of currency on cash	8	(30)
Total increase (decrease) in cash	226	(363)
Cash at the beginning of the period	268	781
Cash at the end of the period	494	418
Eaton Corporation plc [Member]
Condensed Consolidating Statements of Cash Flows, Captions [Line Items]
Net cash provided by (used in) operating activities	(158)	(85)
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	3,333	2,783
Payments on borrowings from affiliates	(637)	(40)
Capital contributions from affiliates	0	0
Return of capital to affiliates	0
Other intercompany financing activities	0	0
Cash dividends paid	(780)	(771)
Exercise of employee stock options	60	48
Repurchase of shares	(567)	(454)
Excess tax benefit from equity-based compensation	0
Other - net	0	0
Net cash used in financing activities	1,409	1,566
Effect of currency on cash	0	0
Total increase (decrease) in cash	1	(1)
Cash at the beginning of the period	0	1
Cash at the end of the period	1	0
Eaton Corporation [Member]
Condensed Consolidating Statements of Cash Flows, Captions [Line Items]
Net cash provided by (used in) operating activities	(29)	(93)
Investing activities
Capital expenditures for property, plant and equipment	(62)	(68)
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	(287)	(307)
Repayments of loans from affiliates	1,288	306
Proceeds from sale of businesses		0
Other - net	0	(41)
Net cash used in investing activities	939	(110)
Financing activities
Proceeds from borrowings	22	0
Payments on borrowings	(408)	(102)
Proceeds from borrowings from affiliates	2,815	4,577
Payments on borrowings from affiliates	(3,453)	(4,617)
Capital contributions from affiliates	0	1,176
Return of capital to affiliates	0
Other intercompany financing activities	158	(859)
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	0
Net cash used in financing activities	(866)	175
Effect of currency on cash	0	0
Total increase (decrease) in cash	44	(28)
Cash at the beginning of the period	26	173
Cash at the end of the period	70	145
Guarantors [Member]
Condensed Consolidating Statements of Cash Flows, Captions [Line Items]
Net cash provided by (used in) operating activities	(283)	(23)
Investing activities
Capital expenditures for property, plant and equipment	(75)	(100)
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	(655)	(39)
Repayments of loans from affiliates	0	58
Proceeds from sale of businesses		0
Other - net	30	33
Net cash used in investing activities	(770)	(1,224)
Financing activities
Proceeds from borrowings	611	0
Payments on borrowings	(240)	(301)
Proceeds from borrowings from affiliates	1,051	581
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	(81)	644
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	(3)	0
Net cash used in financing activities	1,050	1,246
Effect of currency on cash	0	0
Total increase (decrease) in cash	(3)	(1)
Cash at the beginning of the period	7	13
Cash at the end of the period	4	12
Other subsidiaries [Member]
Condensed Consolidating Statements of Cash Flows, Captions [Line Items]
Net cash provided by (used in) operating activities	2,384	1,830
Investing activities
Capital expenditures for property, plant and equipment	(209)	(200)
Cash received from (paid for) acquisitions of businesses, net of cash acquired	0	(38)
Sales (purchases) of short-term investments - net	(31)	76
Investments in affiliates	(1,370)	(1,482)
Return of investments in affiliates	0
Loans to affiliates	(6,457)	(7,638)
Repayments of loans from affiliates	4,501	5,514
Proceeds from sale of businesses		1
Other - net	(27)	(36)
Net cash used in investing activities	(3,593)	(3,803)
Financing activities
Proceeds from borrowings	0	1
Payments on borrowings	(18)	(2)
Proceeds from borrowings from affiliates	200	43
Payments on borrowings from affiliates	(41)	(61)
Capital contributions from affiliates	1,370	1,482
Return of capital to affiliates	(47)
Other intercompany financing activities	(77)	215
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	(2)	(8)
Net cash used in financing activities	1,385	1,670
Effect of currency on cash	8	(30)
Total increase (decrease) in cash	184	(333)
Cash at the beginning of the period	235	594
Cash at the end of the period	419	261
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	7,399	7,984
Repayments of loans from affiliates	(5,789)	(5,878)
Proceeds from sale of businesses		0
Other - net	0	0
Net cash used in investing activities	4,303	6,246
Financing activities
Proceeds from borrowings	0	0
Payments on borrowings	0	0
Proceeds from borrowings from affiliates	(7,399)	(7,984)
Payments on borrowings from affiliates	5,789	5,878
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	0
Net cash used in financing activities	(4,303)	(6,246)
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