Eaton (ETN) 10-Q 2 May 17 2017 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information Document and Entity Information shares in Millions	3 Months Ended
	Mar. 31, 2017shares
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	Mar. 31, 2017
Amendment Flag	false
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q1
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)	447.3

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Millions, $ in Millions	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Income Statement [Abstract]
Net sales	$ 4,848	$ 4,813
Cost of products sold	3,310	3,291
Selling and administrative expense	885	892
Research and development expense	143	149
Interest expense - net	61	57
Other income - net	(15)	(18)
Income before income taxes	464	442
Income tax expense	32	39
Net income	432	403
Less net loss for noncontrolling interests	0	1
Net income attributable to Eaton ordinary shareholders	$ 432	$ 404
Net income per share attributable to Eaton ordinary shareholders
Diluted (usd per share)	$ 0.96	$ 0.88
Basic (usd per share)	$ 0.96	$ 0.88
Weighted-average number of ordinary shares outstanding
Diluted (shares)	451	459.8
Basic (shares)	448.8	458.6
Cash dividends declared per ordinary share (usd per share)	$ 0.60	$ 0.57

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Statement of Comprehensive Income [Abstract]
Net income	$ 432	$ 403
Less net loss for noncontrolling interests	0	1
Net income attributable to Eaton ordinary shareholders	432	404
Other comprehensive income, net of tax
Currency translation and related hedging instruments	228	261
Pensions and other postretirement benefits	33	34
Cash flow hedges	2	(22)
Other comprehensive income attributable to Eaton ordinary shareholders	263	273
Total comprehensive income attributable to Eaton ordinary shareholders	$ 695	$ 677

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions	Mar. 31, 2017	Dec. 31, 2016
Current assets
Cash	$ 222	$ 543
Short-term investments	301	203
Accounts receivable - net	3,673	3,560
Inventory	2,344	2,254
Prepaid expenses and other current assets	435	381
Total current assets	6,975	6,941
Land and buildings	2,413	2,369
Machinery and equipment	5,792	5,670
Gross property, plant and equipment	8,205	8,039
Accumulated depreciation	(4,724)	(4,596)
Net property, plant and equipment	3,481	3,443
Other noncurrent assets
Goodwill	13,296	13,201
Other intangible assets	5,441	5,514
Deferred income taxes	439	360
Other assets	979	960
Total assets	30,611	30,419
Current liabilities
Short-term debt	208	14
Current portion of long-term debt	1,328	1,552
Accounts payable	1,891	1,718
Accrued compensation	270	379
Other current liabilities	1,860	1,822
Total current liabilities	5,557	5,485
Noncurrent liabilities
Long-term debt	6,677	6,711
Pension liabilities	1,553	1,659
Other postretirement benefits liabilities	366	368
Deferred income taxes	319	321
Other noncurrent liabilities	940	934
Total noncurrent liabilities	9,855	9,993
Shareholders’ equity
Eaton shareholders’ equity	15,157	14,897
Noncontrolling interests	42	44
Total equity	15,199	14,941
Total liabilities and equity	$ 30,611	$ 30,419

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Operating activities
Net income	$ 432	$ 403
Adjustments to reconcile to net cash provided by operating activities
Depreciation and amortization	225	233
Deferred income taxes	(38)	(13)
Pension and other postretirement benefits expense	51	59
Contributions to pension plans	(128)	(42)
Contributions to other postretirement benefits plans	(6)	(11)
Changes in working capital	(163)	(296)
Other - net	90	55
Net cash provided by operating activities	463	388
Investing activities
Capital expenditures for property, plant and equipment	(116)	(111)
Cash received from acquisitions of businesses, net of cash acquired	0	1
Purchases of short-term investments - net	(93)	(53)
Other - net	(20)	4
Net cash used in investing activities	(229)	(159)
Financing activities
Proceeds from borrowings	194	418
Payments on borrowings	(254)	(241)
Cash dividends paid	(263)	(256)
Exercise of employee stock options	38	17
Repurchase of shares	(255)	(100)
Payments Related to Tax Withholding for Share-based Compensation	(20)	(17)
Other - net	(3)	2
Net cash used in financing activities	(563)	(177)
Effect of currency on cash	8	13
Total (decrease) increase in cash	(321)	65
Cash at the beginning of the period	543	268
Cash at the end of the period	$ 222	$ 333

BASIS OF PRESENTATION

BASIS OF PRESENTATION	3 Months Ended
	Mar. 31, 2017
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 2016 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 2017, the Company adopted Accounting Standards Update 2016-09, Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting, (ASU 2016-09). Upon adoption, the Company recorded deferred tax assets of $48 for all excess tax benefits that had not been previously recognized. This was accomplished through a cumulative-effect adjustment to retained earnings. ASU 2016-09 also requires that all excess tax benefits and deficiencies generated in the current and future periods be recorded as income tax benefit or expense in the reporting period in which they occur. These excess tax benefits and deficiencies, which were previously required to be presented as financing activities on the Company’s Condensed Consolidated Statements of Cash Flows, are now classified as operating activities prospectively. The Company also reclassified $20 and $17 for the first quarter of 2017 and 2016, respectively, from operating activities to financing activities on the Company’s Condensed Consolidated Statements of Cash Flows for withholding payments made to taxing authorities from shares withheld from employees. The Company will continue to estimate forfeitures as part of recording equity-based compensation expense. Certain prior year amounts have been reclassified to conform to the current year presentation. Recently Issued Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (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. A cross-functional implementation team has been established consisting of representatives from all of our business segments. The implementation team is working to analyze the impact of the standard on the Company's contract portfolio by reviewing current accounting policies and practices to identify potential differences that would result from applying the requirements of the new standard to revenue contracts. In addition, the Company is in the process of identifying and implementing the appropriate changes to business processes and controls to support recognition and disclosure under the new standard. Eaton plans to adopt the standard as of the first quarter of 2018 using the modified retrospective approach and will record a cumulative adjustment to equity for open contracts as of January 1, 2018. Certain revenues will move from point-in-time or multiple elements to over time because of the continuous transfer of control to customers. Eaton is continuing to evaluate the impact of ASU 2014-09 and an estimate of the impact to the consolidated financial statements cannot be made at this time. In February 2016, the Financial Accounting Standards Board 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.

ACQUISITION INTEGRATION CHARGES

ACQUISITION INTEGRATION CHARGES	3 Months Ended
	Mar. 31, 2017
Acquisitions Integration Charges [Abstract]
ACQUISITION INTEGRATION CHARGES	Eaton incurs integration charges related to acquired businesses. A summary of these charges follows: Three months ended 2017 2016 Electrical Products $ 1 $ — Electrical Systems and Services — 1 Total acquisition integration charges before income taxes 1 1 Income taxes — 1 Total after income taxes $ 1 $ — Per ordinary share - diluted $ — $ — Business segment acquisition integration charges in 2017 related to the integration of Ephesus Lighting, Inc. (Ephesus), which was acquired in 2015. The charges associated with Ephesus were included in Selling and administrative expense. Business segment acquisition integration charges in 2016 related to the integration of Oxalis Group Ltd. (Oxalis), which was acquired in 2015. The charges associated with Oxalis were included in Cost of products sold. In Business Segment Information, the charges reduced Operating profit of the related business segment. See Note 12 for additional information about business segments.

RESTRUCTURING CHARGES

RESTRUCTURING CHARGES	3 Months Ended
	Mar. 31, 2017
Restructuring and Related Activities [Abstract]
RESTRUCTURING CHARGES	RESTRUCTURING CHARGES During 2015, Eaton announced its commitment to undertake actions to reduce its cost structure in all business segments and at corporate. Restructuring charges incurred in the first quarter of 2017 and 2016 were $20 and $63 , respectively. The charges associated with restructuring activities are anticipated to be $100 in 2017 . A summary of restructuring charges by type follows: Three months ended 2017 2016 Workforce reductions $ 8 $ 57 Plant closings and other 12 6 Total $ 20 $ 63 A summary of restructuring charges by segment follows: Three months ended 2017 2016 Electrical Products $ 3 $ 17 Electrical Systems & Services 2 10 Hydraulics 9 16 Aerospace 1 4 Vehicle 2 12 Corporate 3 4 Total $ 20 $ 63 A summary of liabilities related to workforce reductions, plant closings and other associated costs announced in 2015 follows: Workforce reductions Plant closings and other Total Balance at December 31, 2015 $ 54 $ — $ 54 Liability recognized 177 34 211 Payments (116 ) (13 ) (129 ) Other adjustments (2 ) (20 ) (22 ) Balance at December 31, 2016 113 1 114 Liability recognized 8 12 20 Payments (32 ) (8 ) (40 ) Other adjustments (3 ) (4 ) (7 ) Balance at March 31, 2017 $ 86 $ 1 $ 87 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 12 for additional information about business segments.

GOODWILL

GOODWILL	3 Months Ended
	Mar. 31, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
GOODWILL	GOODWILL Change in the carrying amount of goodwill by segment follows: Electrical Products Electrical Systems and Services Hydraulics Aerospace Vehicle Total December 31, 2016 $ 6,497 $ 4,203 $ 1,221 $ 938 $ 342 $ 13,201 Translation 56 32 5 1 1 95 March 31, 2017 $ 6,553 $ 4,235 $ 1,226 $ 939 $ 343 $ 13,296

RETIREMENT BENEFITS PLANS

RETIREMENT BENEFITS PLANS	3 Months Ended
	Mar. 31, 2017
Compensation and Retirement Disclosure [Abstract]
RETIREMENT BENEFITS PLANS	RETIREMENT BENEFITS PLANS The components of retirement benefits expense follow: United States Non-United States Other postretirement Three months ended March 31 2017 2016 2017 2016 2017 2016 Service cost $ 24 $ 28 $ 17 $ 16 $ 1 $ 1 Interest cost 31 31 13 16 3 4 Expected return on plan assets (61 ) (63 ) (23 ) (24 ) (1 ) (1 ) Amortization 20 23 13 9 (3 ) (2 ) 14 19 20 17 — 2 Settlements and special termination benefits 17 21 — — — — Total expense $ 31 $ 40 $ 20 $ 17 $ — $ 2

LEGAL CONTINGENCIES

LEGAL CONTINGENCIES	3 Months Ended
	Mar. 31, 2017
Commitments and Contingencies Disclosure [Abstract]
LEGAL CONTINGENCIES	LEGAL CONTINGENCIES Eaton is subject to a broad range of claims, administrative and legal proceedings such as lawsuits that relate to contractual allegations, tax audits, patent infringement, personal injuries, antitrust matters and employment-related matters. Eaton is also subject to asbestos claims from historic products which may have contained asbestos. Insurance may cover some of the costs associated with these claims and proceedings. Although it is not possible to predict with certainty the outcome or cost of these matters, the Company believes they will not have a material adverse effect on the consolidated financial statements. In December 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	3 Months Ended
	Mar. 31, 2017
Income Tax Disclosure [Abstract]
INCOME TAXES	INCOME TAXES The effective income tax rate for the first quarter of 2017 was an expense of 7% , compared to an expense of 9% for the first quarter of 2016 . The decrease in the effective tax rate in the first quarter of 2017 was primarily due to the excess tax benefits recognized for employee share-based payments in the quarter pursuant to the adoption of ASU 2016-09 as discussed in Note 1.

EQUITY

EQUITY	3 Months Ended
	Mar. 31, 2017
Stockholders' Equity Note [Abstract]
EQUITY	EQUITY On October 22, 2013, Eaton's Board of Directors adopted a share repurchase program (the 2013 Program). Under the 2013 Program, the ordinary shares were expected to be repurchased over time, depending on market conditions, the market price of ordinary shares, capital levels, and other considerations. During 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 . On February 24, 2016, the Board of Directors approved a new share repurchase program for share repurchases up to $2,500 of ordinary shares (2016 Program). Under the 2016 Program, the ordinary shares are expected to be repurchased over time, depending on market conditions, the market price of ordinary shares, capital levels, and other considerations. During the first quarter of 2017 and 2016 , 3.6 million and 0.3 million ordinary shares, respectively, were repurchased under the 2016 Program in the open market at a total cost of $255 and $18 , respectively. The changes in Shareholders’ equity follow: Eaton shareholders’ equity Noncontrolling interests Total equity Balance at December 31, 2016 $ 14,897 $ 44 $ 14,941 Cumulative-effect adjustment upon adoption of ASU 2016-09 48 — 48 Net income 432 — 432 Other comprehensive income 263 — 263 Cash dividends paid and accrued (269 ) (2 ) (271 ) Issuance of shares under equity-based compensation plans - net 41 — 41 Repurchase of shares (255 ) — (255 ) Balance at March 31, 2017 $ 15,157 $ 42 $ 15,199 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, 2016 $ (3,062 ) $ (1,380 ) $ (6 ) $ (4,448 ) Other comprehensive (loss) income before reclassifications 228 2 (1 ) 229 Amounts reclassified from Accumulated other comprehensive loss (income) — 31 3 34 Net current-period Other comprehensive income (loss) 228 33 2 263 Balance at March 31, 2017 $ (2,834 ) $ (1,347 ) $ (4 ) $ (4,185 ) The reclassifications out of Accumulated other comprehensive loss follow: Three months ended March 31, 2017 Consolidated statements of income classification Amortization of defined benefit pensions and other postretirement benefits items Actuarial loss and prior service cost $ (47 ) 1 Tax benefit 16 Total, net of tax (31 ) Gains and (losses) on cash flow hedges Currency exchange contracts (4 ) Cost of products sold Tax benefit 1 Total, net of tax (3 ) Total reclassifications for the period $ (34 ) 1 These components of Accumulated other comprehensive loss are included in the computation of net periodic benefit cost. See Note 5 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 (Shares in millions) 2017 2016 Net income attributable to Eaton ordinary shareholders $ 432 $ 404 Weighted-average number of ordinary shares outstanding - diluted 451.0 459.8 Less dilutive effect of equity-based compensation 2.2 1.2 Weighted-average number of ordinary shares outstanding - basic 448.8 458.6 Net income per share attributable to Eaton ordinary shareholders Diluted $ 0.96 $ 0.88 Basic 0.96 0.88 For the first quarter of 2017 and 2016 , 1.2 million and 2.4 million stock options, respectively, were excluded from the calculation of diluted net income per share attributable to Eaton ordinary shareholders because the exercise price of the options exceeded the average market price of the ordinary shares during the period and their effect, accordingly, would have been antidilutive.

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	3 Months Ended
	Mar. 31, 2017
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 March 31, 2017 Cash $ 222 $ 222 $ — $ — Short-term investments 301 301 — — Net derivative contracts 46 — 46 — Long-term debt converted to floating interest rates by interest rate swaps - net (47 ) — (47 ) — December 31, 2016 Cash $ 543 $ 543 $ — $ — Short-term investments 203 203 — — Net derivative contracts (3 ) — (3 ) — Long-term debt converted to floating interest rates by interest rate swaps - net (58 ) — (58 ) — 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 $8,005 and fair value of $8,261 at March 31, 2017 compared to $8,263 and $8,477 , respectively, at December 31, 2016 . 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	3 Months Ended
	Mar. 31, 2017
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 $89 at March 31, 2017 and $86 at December 31, 2016 , and designated on a pre-tax basis was $580 at March 31, 2017 and $572 at December 31, 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 March 31, 2017 Derivatives designated as hedges Fixed-to-floating interest rate swaps $ 3,715 $ — $ 58 $ 1 $ 10 Fair value 7 months to 18 years Forward starting floating-to-fixed interest rate swaps 450 — 18 — — Cash flow 11 years Currency exchange contracts 858 10 1 22 13 Cash flow 1 to 36 months Total $ 10 $ 77 $ 23 $ 23 Derivatives not designated as hedges Currency exchange contracts $ 3,975 $ 32 $ 27 1 to 12 months Commodity contracts 7 — — 1 to 12 months Total $ 32 $ 27 December 31, 2016 Derivatives designated as hedges Fixed-to-floating interest rate swaps $ 3,765 $ 1 $ 65 $ — $ 8 Fair value 3 months to 18 years Forward starting floating-to-fixed interest rate swaps 450 — 19 — 1 Cash flow 11 years Currency exchange contracts 802 11 1 22 17 Cash flow 1 to 36 months Total $ 12 $ 85 $ 22 $ 26 Derivatives not designated as hedges Currency exchange contracts $ 5,333 $ 31 $ 85 1 to 12 months Commodity contracts 10 2 — 1 to 12 months Total $ 33 $ 85 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 2017 2016 2017 2016 Derivatives designated as cash flow hedges Forward starting floating-to-fixed interest rate swaps $ — $ (9 ) Interest expense - net $ — $ — Currency exchange contracts (1 ) (22 ) Cost of products sold (4 ) 3 Total $ (1 ) $ (31 ) $ (4 ) $ 3 Amounts recognized in net income follow: Three months ended 2017 2016 Derivatives designated as fair value hedges Fixed-to-floating interest rate swaps $ (11 ) $ 76 Related long-term debt converted to floating interest rates by interest rate swaps 11 (76 ) $ — $ — Gains and losses described above were recognized in Interest expense - net.

INVENTORY

INVENTORY	3 Months Ended
	Mar. 31, 2017
Inventory Disclosure [Abstract]
INVENTORY	INVENTORY Inventory accounted for using the first-in, first out (FIFO) method is carried at lower of cost or net realizable value. Inventory accounted for using the last-in, first-out (LIFO) method is carried at lower of cost or market. The components of inventory follow: March 31, December 31, Raw materials $ 884 $ 880 Work-in-process 418 396 Finished goods 1,140 1,074 Inventory at FIFO 2,442 2,350 Excess of FIFO over LIFO cost (98 ) (96 ) Total inventory $ 2,344 $ 2,254

BUSINESS SEGMENT INFORMATION

BUSINESS SEGMENT INFORMATION	3 Months Ended
	Mar. 31, 2017
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 2016 Form 10-K. Three months ended 2017 2016 Net sales Electrical Products $ 1,712 $ 1,680 Electrical Systems and Services 1,333 1,342 Hydraulics 587 551 Aerospace 428 445 Vehicle 788 795 Total net sales $ 4,848 $ 4,813 Segment operating profit Electrical Products $ 297 $ 271 Electrical Systems and Services 155 159 Hydraulics 60 41 Aerospace 79 80 Vehicle 108 118 Total segment operating profit 699 669 Corporate Amortization of intangible assets (94 ) (100 ) Interest expense - net (61 ) (57 ) Pension and other postretirement benefits expense (11 ) (14 ) Other corporate expense - net (69 ) (56 ) Income before income taxes 464 442 Income tax expense 32 39 Net income 432 403 Less net loss for noncontrolling interests — 1 Net income attributable to Eaton ordinary shareholders $ 432 $ 404

CONDENSED CONSOLIDATING FINANCI

CONDENSED CONSOLIDATING FINANCIAL STATEMENTS	3 Months Ended
	Mar. 31, 2017
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 2017 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 MARCH 31, 2017 Eaton Corporation plc Eaton Corporation Guarantors Other subsidiaries Consolidating adjustments Total Net sales $ — $ 1,572 $ 1,595 $ 2,991 $ (1,310 ) $ 4,848 Cost of products sold — 1,253 1,188 2,181 (1,312 ) 3,310 Selling and administrative expense 32 326 194 333 — 885 Research and development expense — 54 47 42 — 143 Interest expense (income) - net — 60 5 (4 ) — 61 Other expense (income) - net 7 — (1 ) (21 ) — (15 ) Equity in loss (earnings) of subsidiaries, net of tax (581 ) (190 ) (872 ) (107 ) 1,750 — Intercompany expense (income) - net 110 (39 ) 333 (404 ) — — Income (loss) before income taxes 432 108 701 971 (1,748 ) 464 Income tax expense (benefit) — (3 ) 16 17 2 32 Net income (loss) 432 111 685 954 (1,750 ) 432 Less net loss (income) for noncontrolling interests — — — (1 ) 1 — Net income (loss) attributable to Eaton ordinary shareholders $ 432 $ 111 $ 685 $ 953 $ (1,749 ) $ 432 Other comprehensive income (loss) $ 263 $ 60 $ 271 $ 322 $ (653 ) $ 263 Total comprehensive income (loss) attributable to Eaton ordinary shareholders $ 695 $ 171 $ 956 $ 1,275 $ (2,402 ) $ 695 CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME FOR THE THREE MONTHS ENDED MARCH 31, 2016 Eaton Corporation plc Eaton Corporation Guarantors Other subsidiaries Consolidating adjustments Total Net sales $ — $ 1,538 $ 1,575 $ 2,873 $ (1,173 ) $ 4,813 Cost of products sold — 1,196 1,200 2,070 (1,175 ) 3,291 Selling and administrative expense 2 365 196 329 — 892 Research and development expense — 62 49 38 — 149 Interest expense (income) - net — 53 3 (3 ) 4 57 Other expense (income) - net — (2 ) (2 ) (14 ) — (18 ) Equity in loss (earnings) of subsidiaries, net of tax (504 ) (168 ) (673 ) (95 ) 1,440 — Intercompany expense (income) - net 98 (36 ) 255 (317 ) — — Income (loss) before income taxes 404 68 547 865 (1,442 ) 442 Income tax expense (benefit) — 7 1 31 — 39 Net income (loss) 404 61 546 834 (1,442 ) 403 Less net loss (income) for noncontrolling interests — — — — 1 1 Net income (loss) attributable to Eaton ordinary shareholders $ 404 $ 61 $ 546 $ 834 $ (1,441 ) $ 404 Other comprehensive income (loss) $ 273 $ 44 $ 278 $ 306 $ (628 ) $ 273 Total comprehensive income (loss) attributable to Eaton ordinary shareholders $ 677 $ 105 $ 824 $ 1,140 $ (2,069 ) $ 677 CONDENSED CONSOLIDATING BALANCE SHEETS MARCH 31, 2017 Eaton Corporation plc Eaton Corporation Guarantors Other subsidiaries Consolidating adjustments Total Assets Current assets Cash $ — $ 43 $ 9 $ 170 $ — $ 222 Short-term investments — — — 301 — 301 Accounts receivable - net — 536 1,080 2,057 — 3,673 Intercompany accounts receivable 8 718 3,733 3,621 (8,080 ) — Inventory — 344 652 1,425 (77 ) 2,344 Prepaid expenses and other current assets — 101 41 269 24 435 Total current assets 8 1,742 5,515 7,843 (8,133 ) 6,975 Property, plant and equipment - net — 848 700 1,933 — 3,481 Other noncurrent assets Goodwill — 1,355 6,293 5,648 — 13,296 Other intangible assets — 166 3,396 1,879 — 5,441 Deferred income taxes — 930 2 262 (755 ) 439 Investment in subsidiaries 32,891 13,659 73,741 12,751 (133,042 ) — Intercompany loans receivable — 7,706 2,473 56,946 (67,125 ) — Other assets — 492 140 347 — 979 Total assets $ 32,899 $ 26,898 $ 92,260 $ 87,609 $ (209,055 ) $ 30,611 Liabilities and shareholders’ equity Current liabilities Short-term debt $ — $ 194 $ — $ 14 $ — $ 208 Current portion of long-term debt — 999 326 3 — 1,328 Accounts payable — 460 268 1,163 — 1,891 Intercompany accounts payable 175 3,596 3,068 1,241 (8,080 ) — Accrued compensation — 41 35 194 — 270 Other current liabilities 7 583 308 965 (3 ) 1,860 Total current liabilities 182 5,873 4,005 3,580 (8,083 ) 5,557 Noncurrent liabilities Long-term debt — 5,760 909 8 — 6,677 Pension liabilities — 533 137 883 — 1,553 Other postretirement benefits liabilities — 196 99 71 — 366 Deferred income taxes — — 716 358 (755 ) 319 Intercompany loans payable 17,560 2,557 45,583 1,425 (67,125 ) — Other noncurrent liabilities — 318 222 400 — 940 Total noncurrent liabilities 17,560 9,364 47,666 3,145 (67,880 ) 9,855 Shareholders’ equity Eaton shareholders' equity 15,157 11,661 40,589 80,847 (133,097 ) 15,157 Noncontrolling interests — — — 37 5 42 Total equity 15,157 11,661 40,589 80,884 (133,092 ) 15,199 Total liabilities and equity $ 32,899 $ 26,898 $ 92,260 $ 87,609 $ (209,055 ) $ 30,611 CONDENSED CONSOLIDATING BALANCE SHEETS DECEMBER 31, 2016 Eaton Corporation plc Eaton Corporation Guarantors Other subsidiaries Consolidating adjustments Total Assets Current assets Cash $ 1 $ 92 $ 4 $ 446 $ — $ 543 Short-term investments — — — 203 — 203 Accounts receivable - net — 536 1,049 1,975 — 3,560 Intercompany accounts receivable 5 954 4,023 3,633 (8,615 ) — Inventory — 342 642 1,349 (79 ) 2,254 Prepaid expenses and other current assets — 77 42 237 25 381 Total current assets 6 2,001 5,760 7,843 (8,669 ) 6,941 Property, plant and equipment - net — 857 706 1,880 — 3,443 Other noncurrent assets Goodwill — 1,355 6,293 5,553 — 13,201 Other intangible assets — 169 3,442 1,903 — 5,514 Deferred income taxes — 904 — 228 (772 ) 360 Investment in subsidiaries 32,795 13,743 72,938 12,516 (131,992 ) — Intercompany loans receivable — 7,605 2,061 56,598 (66,264 ) — Other assets — 491 134 335 — 960 Total assets $ 32,801 $ 27,125 $ 91,334 $ 86,856 $ (207,697 ) $ 30,419 Liabilities and shareholders’ equity Current liabilities Short-term debt $ — $ — $ 8 $ 6 $ — $ 14 Current portion of long-term debt — 1,250 296 6 — 1,552 Accounts payable 1 372 252 1,093 — 1,718 Intercompany accounts payable 281 3,870 3,115 1,349 (8,615 ) — Accrued compensation — 98 58 223 — 379 Other current liabilities 1 591 291 941 (2 ) 1,822 Total current liabilities 283 6,181 4,020 3,618 (8,617 ) 5,485 Noncurrent liabilities Long-term debt — 5,767 936 8 — 6,711 Pension liabilities — 610 161 888 — 1,659 Other postretirement benefits liabilities — 198 99 71 — 368 Deferred income taxes — — 732 361 (772 ) 321 Intercompany loans payable 17,621 2,603 44,788 1,252 (66,264 ) — Other noncurrent liabilities — 327 211 396 — 934 Total noncurrent liabilities 17,621 9,505 46,927 2,976 (67,036 ) 9,993 Shareholders’ equity Eaton shareholders' equity 14,897 11,439 40,387 80,224 (132,050 ) 14,897 Noncontrolling interests — — — 38 6 44 Total equity 14,897 11,439 40,387 80,262 (132,044 ) 14,941 Total liabilities and equity $ 32,801 $ 27,125 $ 91,334 $ 86,856 $ (207,697 ) $ 30,419 CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS FOR THE THREE MONTHS ENDED MARCH 31, 2017 Eaton Corporation plc Eaton Corporation Guarantors Other subsidiaries Consolidating adjustments Total Net cash provided by (used in) operating activities $ 611 $ 201 $ 470 $ 688 $ (1,507 ) $ 463 Investing activities Capital expenditures for property, plant and equipment — (20 ) (26 ) (70 ) — (116 ) Sales (purchases) of short-term investments - net — — — (93 ) — (93 ) Loans to affiliates — (6 ) — (2,435 ) 2,441 — Repayments of loans from affiliates — 19 — 2,250 (2,269 ) — Other - net — (11 ) 3 (12 ) — (20 ) Net cash provided by (used in) investing activities — (18 ) (23 ) (360 ) 172 (229 ) Financing activities Proceeds from borrowings — 194 — — — 194 Payments on borrowings — (250 ) — (4 ) — (254 ) Proceeds from borrowings from affiliates 668 1,107 662 4 (2,441 ) — Payments on borrowings from affiliates (800 ) (1,435 ) (17 ) (17 ) 2,269 — Other intercompany financing activities — 165 (282 ) 117 — — Cash dividends paid (263 ) — — — — (263 ) Cash dividends paid to affiliates — — (800 ) (707 ) 1,507 — Exercise of employee stock options 38 — — — — 38 Repurchase of shares (255 ) — — — — (255 ) Employee taxes paid from shares withheld — (13 ) (4 ) (3 ) — (20 ) Other - net — — (1 ) (2 ) — (3 ) Net cash provided by (used in) financing activities (612 ) (232 ) (442 ) (612 ) 1,335 (563 ) Effect of currency on cash — — — 8 — 8 Total increase (decrease) in cash (1 ) (49 ) 5 (276 ) — (321 ) Cash at the beginning of the period 1 92 4 446 — 543 Cash at the end of the period $ — $ 43 $ 9 $ 170 $ — $ 222 CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS FOR THE THREE MONTHS ENDED MARCH 31, 2016 Eaton Corporation plc Eaton Corporation Guarantors Other subsidiaries Consolidating adjustments Total Net cash provided by (used in) operating activities $ (139 ) $ (36 ) $ 75 $ 488 $ — $ 388 Investing activities Capital expenditures for property, plant and equipment — (22 ) (23 ) (66 ) — (111 ) Cash received from (paid for) acquisitions of businesses, net of cash acquired — — 1 — — 1 Sales (purchases) of short-term — — 2 (55 ) — (53 ) Investments in affiliates (1,250 ) — — (1,250 ) 2,500 — Loans to affiliates — (101 ) — (2,158 ) 2,259 — Repayments of loans from affiliates — 1,255 — 1,645 (2,900 ) — Other - net — 8 11 (15 ) — 4 Net cash provided by (used in) investing activities (1,250 ) 1,140 (9 ) (1,899 ) 1,859 (159 ) Financing activities Proceeds from borrowings — 418 — — — 418 Payments on borrowings — (1 ) (240 ) — — (241 ) Proceeds from borrowings from affiliates 1,738 264 158 99 (2,259 ) — Payments on borrowings from affiliates (10 ) (1,635 ) (1,247 ) (8 ) 2,900 — Capital contributions from affiliates — — 1,250 1,250 (2,500 ) — Other intercompany financing activities — (162 ) 16 146 — — Cash dividends paid (256 ) — — — — (256 ) Exercise of employee stock options 17 — — — — 17 Repurchase of shares (100 ) — — — — (100 ) Employee taxes paid from shares withheld — (10 ) (4 ) (3 ) — (17 ) Other - net — 2 — — — 2 Net cash provided by (used in) financing activities 1,389 (1,124 ) (67 ) 1,484 (1,859 ) (177 ) Effect of currency on cash — — — 13 — 13 Total increase (decrease) in cash — (20 ) (1 ) 86 — 65 Cash at the beginning of the period — 26 7 235 — 268 Cash at the end of the period $ — $ 6 $ 6 $ 321 $ — $ 333

BASIS OF PRESENTATION (Policies

BASIS OF PRESENTATION (Policies)	3 Months Ended
	Mar. 31, 2017
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 2016 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.
Share-based Compensation, Option and Incentive Plans Policy	During the first quarter of 2017, the Company adopted Accounting Standards Update 2016-09, Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting, (ASU 2016-09). Upon adoption, the Company recorded deferred tax assets of $48 for all excess tax benefits that had not been previously recognized. This was accomplished through a cumulative-effect adjustment to retained earnings. ASU 2016-09 also requires that all excess tax benefits and deficiencies generated in the current and future periods be recorded as income tax benefit or expense in the reporting period in which they occur. These excess tax benefits and deficiencies, which were previously required to be presented as financing activities on the Company’s Condensed Consolidated Statements of Cash Flows, are now classified as operating activities prospectively. The Company also reclassified $20 and $17 for the first quarter of 2017 and 2016, respectively, from operating activities to financing activities on the Company’s Condensed Consolidated Statements of Cash Flows for withholding payments made to taxing authorities from shares withheld from employees. The Company will continue to estimate forfeitures as part of recording equity-based compensation expense.
Reclassifications	Certain prior year amounts have been reclassified to conform to the current year presentation.
Recently Issued Accounting Pronouncements	Recently Issued Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (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. A cross-functional implementation team has been established consisting of representatives from all of our business segments. The implementation team is working to analyze the impact of the standard on the Company's contract portfolio by reviewing current accounting policies and practices to identify potential differences that would result from applying the requirements of the new standard to revenue contracts. In addition, the Company is in the process of identifying and implementing the appropriate changes to business processes and controls to support recognition and disclosure under the new standard. Eaton plans to adopt the standard as of the first quarter of 2018 using the modified retrospective approach and will record a cumulative adjustment to equity for open contracts as of January 1, 2018. Certain revenues will move from point-in-time or multiple elements to over time because of the continuous transfer of control to customers. Eaton is continuing to evaluate the impact of ASU 2014-09 and an estimate of the impact to the consolidated financial statements cannot be made at this time. In February 2016, the Financial Accounting Standards Board 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.

ACQUISITION INTEGRATION CHARG20

ACQUISITION INTEGRATION CHARGES (Tables)	3 Months Ended
	Mar. 31, 2017
Acquisitions Integration Charges [Abstract]
Acquisition Integration Charges	Eaton incurs integration charges related to acquired businesses. A summary of these charges follows: Three months ended 2017 2016 Electrical Products $ 1 $ — Electrical Systems and Services — 1 Total acquisition integration charges before income taxes 1 1 Income taxes — 1 Total after income taxes $ 1 $ — Per ordinary share - diluted $ — $ —

RESTRUCTURING CHARGES (Tables)

RESTRUCTURING CHARGES (Tables)	3 Months Ended
	Mar. 31, 2017
Restructuring and Related Activities [Abstract]
Restructuring Charges by Type	A summary of restructuring charges by type follows: Three months ended 2017 2016 Workforce reductions $ 8 $ 57 Plant closings and other 12 6 Total $ 20 $ 63
Restructuring Charges by Segment	A summary of restructuring charges by segment follows: Three months ended 2017 2016 Electrical Products $ 3 $ 17 Electrical Systems & Services 2 10 Hydraulics 9 16 Aerospace 1 4 Vehicle 2 12 Corporate 3 4 Total $ 20 $ 63
Restructuring Liability Rollforward	A summary of liabilities related to workforce reductions, plant closings and other associated costs announced in 2015 follows: Workforce reductions Plant closings and other Total Balance at December 31, 2015 $ 54 $ — $ 54 Liability recognized 177 34 211 Payments (116 ) (13 ) (129 ) Other adjustments (2 ) (20 ) (22 ) Balance at December 31, 2016 113 1 114 Liability recognized 8 12 20 Payments (32 ) (8 ) (40 ) Other adjustments (3 ) (4 ) (7 ) Balance at March 31, 2017 $ 86 $ 1 $ 87

GOODWILL (Tables)

GOODWILL (Tables)	3 Months Ended
	Mar. 31, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Goodwill	Change in the carrying amount of goodwill by segment follows: Electrical Products Electrical Systems and Services Hydraulics Aerospace Vehicle Total December 31, 2016 $ 6,497 $ 4,203 $ 1,221 $ 938 $ 342 $ 13,201 Translation 56 32 5 1 1 95 March 31, 2017 $ 6,553 $ 4,235 $ 1,226 $ 939 $ 343 $ 13,296

RETIRED BENEFIT PLANS (Tables)

RETIRED BENEFIT PLANS (Tables)	3 Months Ended
	Mar. 31, 2017
Compensation and Retirement Disclosure [Abstract]
Retirement Benefits Plans Expense	The components of retirement benefits expense follow: United States Non-United States Other postretirement Three months ended March 31 2017 2016 2017 2016 2017 2016 Service cost $ 24 $ 28 $ 17 $ 16 $ 1 $ 1 Interest cost 31 31 13 16 3 4 Expected return on plan assets (61 ) (63 ) (23 ) (24 ) (1 ) (1 ) Amortization 20 23 13 9 (3 ) (2 ) 14 19 20 17 — 2 Settlements and special termination benefits 17 21 — — — — Total expense $ 31 $ 40 $ 20 $ 17 $ — $ 2

EQUITY (Tables)

EQUITY (Tables)	3 Months Ended
	Mar. 31, 2017
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, 2016 $ 14,897 $ 44 $ 14,941 Cumulative-effect adjustment upon adoption of ASU 2016-09 48 — 48 Net income 432 — 432 Other comprehensive income 263 — 263 Cash dividends paid and accrued (269 ) (2 ) (271 ) Issuance of shares under equity-based compensation plans - net 41 — 41 Repurchase of shares (255 ) — (255 ) Balance at March 31, 2017 $ 15,157 $ 42 $ 15,199
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, 2016 $ (3,062 ) $ (1,380 ) $ (6 ) $ (4,448 ) Other comprehensive (loss) income before reclassifications 228 2 (1 ) 229 Amounts reclassified from Accumulated other comprehensive loss (income) — 31 3 34 Net current-period Other comprehensive income (loss) 228 33 2 263 Balance at March 31, 2017 $ (2,834 ) $ (1,347 ) $ (4 ) $ (4,185 )
Reclassification Out of Accumulated Other Comprehensive Loss	The reclassifications out of Accumulated other comprehensive loss follow: Three months ended March 31, 2017 Consolidated statements of income classification Amortization of defined benefit pensions and other postretirement benefits items Actuarial loss and prior service cost $ (47 ) 1 Tax benefit 16 Total, net of tax (31 ) Gains and (losses) on cash flow hedges Currency exchange contracts (4 ) Cost of products sold Tax benefit 1 Total, net of tax (3 ) Total reclassifications for the period $ (34 ) 1 These components of Accumulated other comprehensive loss are included in the computation of net periodic benefit cost. See Note 5 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 (Shares in millions) 2017 2016 Net income attributable to Eaton ordinary shareholders $ 432 $ 404 Weighted-average number of ordinary shares outstanding - diluted 451.0 459.8 Less dilutive effect of equity-based compensation 2.2 1.2 Weighted-average number of ordinary shares outstanding - basic 448.8 458.6 Net income per share attributable to Eaton ordinary shareholders Diluted $ 0.96 $ 0.88 Basic 0.96 0.88

FAIR VALUE MEASUREMENTS (Tables

FAIR VALUE MEASUREMENTS (Tables)	3 Months Ended
	Mar. 31, 2017
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 March 31, 2017 Cash $ 222 $ 222 $ — $ — Short-term investments 301 301 — — Net derivative contracts 46 — 46 — Long-term debt converted to floating interest rates by interest rate swaps - net (47 ) — (47 ) — December 31, 2016 Cash $ 543 $ 543 $ — $ — Short-term investments 203 203 — — Net derivative contracts (3 ) — (3 ) — Long-term debt converted to floating interest rates by interest rate swaps - net (58 ) — (58 ) —

DERIVATIVE FINANCIAL INSTRUME26

DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES (Tables)	3 Months Ended
	Mar. 31, 2017
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 March 31, 2017 Derivatives designated as hedges Fixed-to-floating interest rate swaps $ 3,715 $ — $ 58 $ 1 $ 10 Fair value 7 months to 18 years Forward starting floating-to-fixed interest rate swaps 450 — 18 — — Cash flow 11 years Currency exchange contracts 858 10 1 22 13 Cash flow 1 to 36 months Total $ 10 $ 77 $ 23 $ 23 Derivatives not designated as hedges Currency exchange contracts $ 3,975 $ 32 $ 27 1 to 12 months Commodity contracts 7 — — 1 to 12 months Total $ 32 $ 27 December 31, 2016 Derivatives designated as hedges Fixed-to-floating interest rate swaps $ 3,765 $ 1 $ 65 $ — $ 8 Fair value 3 months to 18 years Forward starting floating-to-fixed interest rate swaps 450 — 19 — 1 Cash flow 11 years Currency exchange contracts 802 11 1 22 17 Cash flow 1 to 36 months Total $ 12 $ 85 $ 22 $ 26 Derivatives not designated as hedges Currency exchange contracts $ 5,333 $ 31 $ 85 1 to 12 months Commodity contracts 10 2 — 1 to 12 months Total $ 33 $ 85
Amounts Recognized in Accumulated Other Comprehensive Loss	The impact of derivative instruments to the Consolidated Statement of Income and Comprehensive Income follow: Gain (loss) recognized in other comprehensive (loss) income Location of gain (loss) reclassified from Accumulated other comprehensive loss Gain (loss) reclassified from Accumulated other comprehensive loss Three months ended Three months ended 2017 2016 2017 2016 Derivatives designated as cash flow hedges Forward starting floating-to-fixed interest rate swaps $ — $ (9 ) Interest expense - net $ — $ — Currency exchange contracts (1 ) (22 ) Cost of products sold (4 ) 3 Total $ (1 ) $ (31 ) $ (4 ) $ 3
Amounts recognized in Net Income	Amounts recognized in net income follow: Three months ended 2017 2016 Derivatives designated as fair value hedges Fixed-to-floating interest rate swaps $ (11 ) $ 76 Related long-term debt converted to floating interest rates by interest rate swaps 11 (76 ) $ — $ —

INVENTORY (Tables)

INVENTORY (Tables)	3 Months Ended
	Mar. 31, 2017
Inventory Disclosure [Abstract]
Components of Inventory	March 31, December 31, Raw materials $ 884 $ 880 Work-in-process 418 396 Finished goods 1,140 1,074 Inventory at FIFO 2,442 2,350 Excess of FIFO over LIFO cost (98 ) (96 ) Total inventory $ 2,344 $ 2,254

BUSINESS SEGMENT INFORMATION (T

BUSINESS SEGMENT INFORMATION (Tables)	3 Months Ended
	Mar. 31, 2017
Segment Reporting [Abstract]
Business Segment Information	Three months ended 2017 2016 Net sales Electrical Products $ 1,712 $ 1,680 Electrical Systems and Services 1,333 1,342 Hydraulics 587 551 Aerospace 428 445 Vehicle 788 795 Total net sales $ 4,848 $ 4,813 Segment operating profit Electrical Products $ 297 $ 271 Electrical Systems and Services 155 159 Hydraulics 60 41 Aerospace 79 80 Vehicle 108 118 Total segment operating profit 699 669 Corporate Amortization of intangible assets (94 ) (100 ) Interest expense - net (61 ) (57 ) Pension and other postretirement benefits expense (11 ) (14 ) Other corporate expense - net (69 ) (56 ) Income before income taxes 464 442 Income tax expense 32 39 Net income 432 403 Less net loss for noncontrolling interests — 1 Net income attributable to Eaton ordinary shareholders $ 432 $ 404

CONDENSED CONSOLIDATING FINAN29

CONDENSED CONSOLIDATING FINANCIAL STATEMENTS (Tables)	3 Months Ended
	Mar. 31, 2017
Condensed Consolidating Financial Information [Abstract]
Condensed Consolidating Financial Statements	CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME FOR THE THREE MONTHS ENDED MARCH 31, 2017 Eaton Corporation plc Eaton Corporation Guarantors Other subsidiaries Consolidating adjustments Total Net sales $ — $ 1,572 $ 1,595 $ 2,991 $ (1,310 ) $ 4,848 Cost of products sold — 1,253 1,188 2,181 (1,312 ) 3,310 Selling and administrative expense 32 326 194 333 — 885 Research and development expense — 54 47 42 — 143 Interest expense (income) - net — 60 5 (4 ) — 61 Other expense (income) - net 7 — (1 ) (21 ) — (15 ) Equity in loss (earnings) of subsidiaries, net of tax (581 ) (190 ) (872 ) (107 ) 1,750 — Intercompany expense (income) - net 110 (39 ) 333 (404 ) — — Income (loss) before income taxes 432 108 701 971 (1,748 ) 464 Income tax expense (benefit) — (3 ) 16 17 2 32 Net income (loss) 432 111 685 954 (1,750 ) 432 Less net loss (income) for noncontrolling interests — — — (1 ) 1 — Net income (loss) attributable to Eaton ordinary shareholders $ 432 $ 111 $ 685 $ 953 $ (1,749 ) $ 432 Other comprehensive income (loss) $ 263 $ 60 $ 271 $ 322 $ (653 ) $ 263 Total comprehensive income (loss) attributable to Eaton ordinary shareholders $ 695 $ 171 $ 956 $ 1,275 $ (2,402 ) $ 695 CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME FOR THE THREE MONTHS ENDED MARCH 31, 2016 Eaton Corporation plc Eaton Corporation Guarantors Other subsidiaries Consolidating adjustments Total Net sales $ — $ 1,538 $ 1,575 $ 2,873 $ (1,173 ) $ 4,813 Cost of products sold — 1,196 1,200 2,070 (1,175 ) 3,291 Selling and administrative expense 2 365 196 329 — 892 Research and development expense — 62 49 38 — 149 Interest expense (income) - net — 53 3 (3 ) 4 57 Other expense (income) - net — (2 ) (2 ) (14 ) — (18 ) Equity in loss (earnings) of subsidiaries, net of tax (504 ) (168 ) (673 ) (95 ) 1,440 — Intercompany expense (income) - net 98 (36 ) 255 (317 ) — — Income (loss) before income taxes 404 68 547 865 (1,442 ) 442 Income tax expense (benefit) — 7 1 31 — 39 Net income (loss) 404 61 546 834 (1,442 ) 403 Less net loss (income) for noncontrolling interests — — — — 1 1 Net income (loss) attributable to Eaton ordinary shareholders $ 404 $ 61 $ 546 $ 834 $ (1,441 ) $ 404 Other comprehensive income (loss) $ 273 $ 44 $ 278 $ 306 $ (628 ) $ 273 Total comprehensive income (loss) attributable to Eaton ordinary shareholders $ 677 $ 105 $ 824 $ 1,140 $ (2,069 ) $ 677 CONDENSED CONSOLIDATING BALANCE SHEETS MARCH 31, 2017 Eaton Corporation plc Eaton Corporation Guarantors Other subsidiaries Consolidating adjustments Total Assets Current assets Cash $ — $ 43 $ 9 $ 170 $ — $ 222 Short-term investments — — — 301 — 301 Accounts receivable - net — 536 1,080 2,057 — 3,673 Intercompany accounts receivable 8 718 3,733 3,621 (8,080 ) — Inventory — 344 652 1,425 (77 ) 2,344 Prepaid expenses and other current assets — 101 41 269 24 435 Total current assets 8 1,742 5,515 7,843 (8,133 ) 6,975 Property, plant and equipment - net — 848 700 1,933 — 3,481 Other noncurrent assets Goodwill — 1,355 6,293 5,648 — 13,296 Other intangible assets — 166 3,396 1,879 — 5,441 Deferred income taxes — 930 2 262 (755 ) 439 Investment in subsidiaries 32,891 13,659 73,741 12,751 (133,042 ) — Intercompany loans receivable — 7,706 2,473 56,946 (67,125 ) — Other assets — 492 140 347 — 979 Total assets $ 32,899 $ 26,898 $ 92,260 $ 87,609 $ (209,055 ) $ 30,611 Liabilities and shareholders’ equity Current liabilities Short-term debt $ — $ 194 $ — $ 14 $ — $ 208 Current portion of long-term debt — 999 326 3 — 1,328 Accounts payable — 460 268 1,163 — 1,891 Intercompany accounts payable 175 3,596 3,068 1,241 (8,080 ) — Accrued compensation — 41 35 194 — 270 Other current liabilities 7 583 308 965 (3 ) 1,860 Total current liabilities 182 5,873 4,005 3,580 (8,083 ) 5,557 Noncurrent liabilities Long-term debt — 5,760 909 8 — 6,677 Pension liabilities — 533 137 883 — 1,553 Other postretirement benefits liabilities — 196 99 71 — 366 Deferred income taxes — — 716 358 (755 ) 319 Intercompany loans payable 17,560 2,557 45,583 1,425 (67,125 ) — Other noncurrent liabilities — 318 222 400 — 940 Total noncurrent liabilities 17,560 9,364 47,666 3,145 (67,880 ) 9,855 Shareholders’ equity Eaton shareholders' equity 15,157 11,661 40,589 80,847 (133,097 ) 15,157 Noncontrolling interests — — — 37 5 42 Total equity 15,157 11,661 40,589 80,884 (133,092 ) 15,199 Total liabilities and equity $ 32,899 $ 26,898 $ 92,260 $ 87,609 $ (209,055 ) $ 30,611 CONDENSED CONSOLIDATING BALANCE SHEETS DECEMBER 31, 2016 Eaton Corporation plc Eaton Corporation Guarantors Other subsidiaries Consolidating adjustments Total Assets Current assets Cash $ 1 $ 92 $ 4 $ 446 $ — $ 543 Short-term investments — — — 203 — 203 Accounts receivable - net — 536 1,049 1,975 — 3,560 Intercompany accounts receivable 5 954 4,023 3,633 (8,615 ) — Inventory — 342 642 1,349 (79 ) 2,254 Prepaid expenses and other current assets — 77 42 237 25 381 Total current assets 6 2,001 5,760 7,843 (8,669 ) 6,941 Property, plant and equipment - net — 857 706 1,880 — 3,443 Other noncurrent assets Goodwill — 1,355 6,293 5,553 — 13,201 Other intangible assets — 169 3,442 1,903 — 5,514 Deferred income taxes — 904 — 228 (772 ) 360 Investment in subsidiaries 32,795 13,743 72,938 12,516 (131,992 ) — Intercompany loans receivable — 7,605 2,061 56,598 (66,264 ) — Other assets — 491 134 335 — 960 Total assets $ 32,801 $ 27,125 $ 91,334 $ 86,856 $ (207,697 ) $ 30,419 Liabilities and shareholders’ equity Current liabilities Short-term debt $ — $ — $ 8 $ 6 $ — $ 14 Current portion of long-term debt — 1,250 296 6 — 1,552 Accounts payable 1 372 252 1,093 — 1,718 Intercompany accounts payable 281 3,870 3,115 1,349 (8,615 ) — Accrued compensation — 98 58 223 — 379 Other current liabilities 1 591 291 941 (2 ) 1,822 Total current liabilities 283 6,181 4,020 3,618 (8,617 ) 5,485 Noncurrent liabilities Long-term debt — 5,767 936 8 — 6,711 Pension liabilities — 610 161 888 — 1,659 Other postretirement benefits liabilities — 198 99 71 — 368 Deferred income taxes — — 732 361 (772 ) 321 Intercompany loans payable 17,621 2,603 44,788 1,252 (66,264 ) — Other noncurrent liabilities — 327 211 396 — 934 Total noncurrent liabilities 17,621 9,505 46,927 2,976 (67,036 ) 9,993 Shareholders’ equity Eaton shareholders' equity 14,897 11,439 40,387 80,224 (132,050 ) 14,897 Noncontrolling interests — — — 38 6 44 Total equity 14,897 11,439 40,387 80,262 (132,044 ) 14,941 Total liabilities and equity $ 32,801 $ 27,125 $ 91,334 $ 86,856 $ (207,697 ) $ 30,419 CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS FOR THE THREE MONTHS ENDED MARCH 31, 2017 Eaton Corporation plc Eaton Corporation Guarantors Other subsidiaries Consolidating adjustments Total Net cash provided by (used in) operating activities $ 611 $ 201 $ 470 $ 688 $ (1,507 ) $ 463 Investing activities Capital expenditures for property, plant and equipment — (20 ) (26 ) (70 ) — (116 ) Sales (purchases) of short-term investments - net — — — (93 ) — (93 ) Loans to affiliates — (6 ) — (2,435 ) 2,441 — Repayments of loans from affiliates — 19 — 2,250 (2,269 ) — Other - net — (11 ) 3 (12 ) — (20 ) Net cash provided by (used in) investing activities — (18 ) (23 ) (360 ) 172 (229 ) Financing activities Proceeds from borrowings — 194 — — — 194 Payments on borrowings — (250 ) — (4 ) — (254 ) Proceeds from borrowings from affiliates 668 1,107 662 4 (2,441 ) — Payments on borrowings from affiliates (800 ) (1,435 ) (17 ) (17 ) 2,269 — Other intercompany financing activities — 165 (282 ) 117 — — Cash dividends paid (263 ) — — — — (263 ) Cash dividends paid to affiliates — — (800 ) (707 ) 1,507 — Exercise of employee stock options 38 — — — — 38 Repurchase of shares (255 ) — — — — (255 ) Employee taxes paid from shares withheld — (13 ) (4 ) (3 ) — (20 ) Other - net — — (1 ) (2 ) — (3 ) Net cash provided by (used in) financing activities (612 ) (232 ) (442 ) (612 ) 1,335 (563 ) Effect of currency on cash — — — 8 — 8 Total increase (decrease) in cash (1 ) (49 ) 5 (276 ) — (321 ) Cash at the beginning of the period 1 92 4 446 — 543 Cash at the end of the period $ — $ 43 $ 9 $ 170 $ — $ 222 CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS FOR THE THREE MONTHS ENDED MARCH 31, 2016 Eaton Corporation plc Eaton Corporation Guarantors Other subsidiaries Consolidating adjustments Total Net cash provided by (used in) operating activities $ (139 ) $ (36 ) $ 75 $ 488 $ — $ 388 Investing activities Capital expenditures for property, plant and equipment — (22 ) (23 ) (66 ) — (111 ) Cash received from (paid for) acquisitions of businesses, net of cash acquired — — 1 — — 1 Sales (purchases) of short-term — — 2 (55 ) — (53 ) Investments in affiliates (1,250 ) — — (1,250 ) 2,500 — Loans to affiliates — (101 ) — (2,158 ) 2,259 — Repayments of loans from affiliates — 1,255 — 1,645 (2,900 ) — Other - net — 8 11 (15 ) — 4 Net cash provided by (used in) investing activities (1,250 ) 1,140 (9 ) (1,899 ) 1,859 (159 ) Financing activities Proceeds from borrowings — 418 — — — 418 Payments on borrowings — (1 ) (240 ) — — (241 ) Proceeds from borrowings from affiliates 1,738 264 158 99 (2,259 ) — Payments on borrowings from affiliates (10 ) (1,635 ) (1,247 ) (8 ) 2,900 — Capital contributions from affiliates — — 1,250 1,250 (2,500 ) — Other intercompany financing activities — (162 ) 16 146 — — Cash dividends paid (256 ) — — — — (256 ) Exercise of employee stock options 17 — — — — 17 Repurchase of shares (100 ) — — — — (100 ) Employee taxes paid from shares withheld — (10 ) (4 ) (3 ) — (17 ) Other - net — 2 — — — 2 Net cash provided by (used in) financing activities 1,389 (1,124 ) (67 ) 1,484 (1,859 ) (177 ) Effect of currency on cash — — — 13 — 13 Total increase (decrease) in cash — (20 ) (1 ) 86 — 65 Cash at the beginning of the period — 26 7 235 — 268 Cash at the end of the period $ — $ 6 $ 6 $ 321 $ — $ 333

BASIS OF PRESENTATION (Details)

BASIS OF PRESENTATION (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Deferred Tax Asset recognized adoption of ASU 2016-09	$ 48
Reclassifications due to adoption of ASU 2016-09	$ 20	$ 17

ACQUISITION AND INTEGRATION CHA

ACQUISITION AND INTEGRATION CHARGES (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Acquisition integration charges [Line Items]
Acquisition integration charges	$ 1	$ 1
Income taxes	0	1
Total after income taxes	$ 1	$ 0
Per ordinary share - diluted (dollars per share)	$ 0	$ 0
Electrical Products [Member]
Acquisition integration charges [Line Items]
Acquisition integration charges	$ 1	$ 0
Electrical Systems and Services [Member]
Acquisition integration charges [Line Items]
Acquisition integration charges	$ 0	$ 1

RESTRUCTURING CHARGES - Narrati

RESTRUCTURING CHARGES - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		12 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016	Dec. 31, 2017
Restructuring Cost and Reserve [Line Items]
Restructuring charges	$ 20	$ 63	$ 211
Employee Severance [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring charges	$ 8		$ 177
Scenario, Forecast [Member] | Employee Severance [Member]
Restructuring Cost and Reserve [Line Items]
Charges associated with restructuring activities				$ 100

RESTRUCTURING CHARGES - Summary

RESTRUCTURING CHARGES - Summary of Restructuring Charges by Type (Details) - USD ($) $ in Millions	3 Months Ended		12 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
Restructuring and Related Activities [Abstract]
Workforce reductions	$ 8	$ 57
Plant closings and other	12	6
Total	$ 20	$ 63	$ 211

RESTRUCTURING CHARGES - Summa34

RESTRUCTURING CHARGES - Summary of Restructuring Charges by Segment (Details) - USD ($) $ in Millions	3 Months Ended		12 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
Restructuring Cost and Reserve [Line Items]
Restructuring charges	$ 20	$ 63	$ 211
Electrical Products [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring charges	3	17
Electrical Systems and Services [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring charges	2	10
Hydraulics [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring charges	9	16
Aerospace [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring charges	1	4
Vehicle [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring charges	2	12
Corporate, Non-Segment [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring charges	$ 3	$ 4

RESTRUCTURING CHARGES - Restruc

RESTRUCTURING CHARGES - Restructuring Roll Forward (Details) - USD ($) $ in Millions	3 Months Ended		12 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
Restructuring Reserve [Roll Forward]
Beginning balance	$ 114	$ 54	$ 54
Liability recognized	20	63	211
Payments	(40)		(129)
Other adjustments	(7)		(22)
Ending balance	87		114
Workforce reductions [Member]
Restructuring Reserve [Roll Forward]
Beginning balance	113	54	54
Liability recognized	8		177
Payments	(32)		(116)
Other adjustments	(3)		(2)
Ending balance	86		113
Plant closings and other [Member]
Restructuring Reserve [Roll Forward]
Beginning balance	1	$ 0	0
Liability recognized	12		34
Payments	(8)		(13)
Other adjustments	(4)		(20)
Ending balance	$ 1		$ 1

GOODWILL (Details)

GOODWILL (Details) $ in Millions	3 Months Ended
	Mar. 31, 2017USD ($)
Goodwill [Roll Forward]
Beginning balance	$ 13,201
Translation	95
Ending balance	13,296
Electrical Products [Member]
Goodwill [Roll Forward]
Beginning balance	6,497
Translation	56
Ending balance	6,553
Electrical Systems and Services [Member]
Goodwill [Roll Forward]
Beginning balance	4,203
Translation	32
Ending balance	4,235
Hydraulics [Member]
Goodwill [Roll Forward]
Beginning balance	1,221
Translation	5
Ending balance	1,226
Aerospace [Member]
Goodwill [Roll Forward]
Beginning balance	938
Translation	1
Ending balance	939
Vehicle [Member]
Goodwill [Roll Forward]
Beginning balance	342
Translation	1
Ending balance	$ 343

RETIRED BENEFIT PLANS (Details)

RETIRED BENEFIT PLANS (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
United States pension benefit expense [Member]
Retirement benefits plans expense
Service cost	$ 24	$ 28
Interest cost	31	31
Expected return on plan assets	(61)	(63)
Amortization	20	23
Total	14	19
Settlements and curtailments	17	21
Total expense	31	40
Non-United States pension benefit expense [Member]
Retirement benefits plans expense
Service cost	17	16
Interest cost	13	16
Expected return on plan assets	(23)	(24)
Amortization	13	9
Total	20	17
Settlements and curtailments	0	0
Total expense	20	17
Other postretirement benefits expense [Member]
Retirement benefits plans expense
Service cost	1	1
Interest cost	3	4
Expected return on plan assets	(1)	(1)
Amortization	(3)	(2)
Total	0	2
Settlements and curtailments	0	0
Total expense	$ 0	$ 2

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	$ 0	BRL 0

INCOME TAXES (Details)

INCOME TAXES (Details)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Income Tax Disclosure [Abstract]
Effective tax rate	7.00%	9.00%

EQUITY - Changes in Shareholder

EQUITY - Changes in Shareholders's Equity (Details) - USD ($) shares in Millions, $ in Millions	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Changes in Shareholders' equity
Beginning balance	$ 14,941
Cumulative Effect of New Accounting Principle in Period of Adoption	48
Net income (loss)	432	$ 403
Other comprehensive income	263	$ 273
Cash dividends paid	(271)
Issuance of shares under equity-based compensation plans - net	41
Repurchase of shares	(255)
Ending balance	15,199
Parent [Member]
Changes in Shareholders' equity
Beginning balance	14,897
Cumulative Effect of New Accounting Principle in Period of Adoption	48
Net income (loss)	432
Other comprehensive income	263
Cash dividends paid	(269)
Issuance of shares under equity-based compensation plans - net	41
Repurchase of shares	(255)
Ending balance	15,157
Noncontrolling Interest [Member]
Changes in Shareholders' equity
Beginning balance	44
Cumulative Effect of New Accounting Principle in Period of Adoption	0
Net income (loss)	0
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
2013 Program [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Ordinary shares purchased (in shares)		1.5
Changes in Shareholders' equity
Repurchase of shares		$ (82)
2016 Program [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Ordinary shares purchased (in shares)	3.6	0.3
Amount of shares repurchased (up to)	$ 2,500
Changes in Shareholders' equity
Repurchase of shares	$ (255)	$ (18)

EQUITY - Changes in Accumulated

EQUITY - Changes in Accumulated Other Comprehensive (Loss) Income (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Amounts reclassified from Accumulated other comprehensive loss (income)	$ 34
Net current-period Other comprehensive income (loss)	263	$ 273
Currency translation and related hedging instruments [Member]
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(3,062)
Other comprehensive (loss) income before reclassifications	228
Amounts reclassified from Accumulated other comprehensive loss (income)	0
Net current-period Other comprehensive income (loss)	228
Ending balance	(2,834)
Pensions and other postretirement benefits [Member]
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(1,380)
Other comprehensive (loss) income before reclassifications	2
Amounts reclassified from Accumulated other comprehensive loss (income)	31
Net current-period Other comprehensive income (loss)	33
Ending balance	(1,347)
Cash flow hedges [Member]
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(6)
Other comprehensive (loss) income before reclassifications	(1)
Amounts reclassified from Accumulated other comprehensive loss (income)	3
Net current-period Other comprehensive income (loss)	2
Ending balance	(4)
Total AOCI Attributable to Parent [Member]
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(4,448)
Other comprehensive (loss) income before reclassifications	229
Amounts reclassified from Accumulated other comprehensive loss (income)	34
Net current-period Other comprehensive income (loss)	263
Ending balance	$ (4,185)

EQUITY - Reclassifications Out

EQUITY - Reclassifications Out of Accumulated Other Comprehensive Loss (Details) $ in Millions	3 Months Ended
	Mar. 31, 2017USD ($)
Stockholders' Equity Note [Abstract]
Actuarial loss and prior service cost	$ (47)	[1]
Tax benefit	16
Total, net of tax	(31)
Currency exchange contracts	(4)
Tax benefit	1
Total, net of tax	(3)
Total reclassifications for the period	$ (34)
[1]	These components of Accumulated other comprehensive loss are included in the computation of net periodic benefit cost. See Note 5 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
	Mar. 31, 2017	Mar. 31, 2016
Calculation of net income per ordinary share attributable to ordinary shareholders
Net income attributable to Eaton ordinary shareholders	$ 432	$ 404
Weighted-average number of ordinary shares outstanding - diluted (shares)	451	459.8
Less dilutive effect of equity-based compensation (shares)	2.2	1.2
Weighted-average number of ordinary shares outstanding - basic (shares)	448.8	458.6
Net income per share attributable to Eaton ordinary shareholders
Diluted (usd per share)	$ 0.96	$ 0.88
Basic (usd per share)	$ 0.96	$ 0.88
Stock options excluded from calculation of diluted net income per ordinary share (shares)	1.2	2.4

FAIR VALUE MEASUREMENTS - Summa

FAIR VALUE MEASUREMENTS - Summary of Financial Instruments at Fair Value (Details) - USD ($) $ in Millions	Mar. 31, 2017	Dec. 31, 2016	Mar. 31, 2016	Dec. 31, 2015
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items]
Cash	$ 222	$ 543	$ 333	$ 268
Short-term investments	301	203
Net derivative contracts	46	(3)
Long-term debt converted to floating interest rates by interest rate swaps - net	(47)	(58)
Level 1 [Member]
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items]
Cash		543
Short-term investments		203
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	46	(3)
Long-term debt converted to floating interest rates by interest rate swaps - net	(47)	(58)
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	Mar. 31, 2017	Dec. 31, 2016
Other Fair Value Measurements [Line Items]
Carrying value of long-term debt and current portion of long-term debt	$ 8,005	$ 8,263
Level 2 [Member]
Other Fair Value Measurements [Line Items]
Fair value of long-term debt and current portion of long-term debt	$ 8,261	$ 8,477

DERIVATIVE FINANCIAL INSTRUME46

DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES - Derivative Financial Instrument Recognized in the Consolidated Balance sheet (Details) - USD ($) $ in Millions	3 Months Ended	12 Months Ended
	Mar. 31, 2017	Dec. 31, 2016
Derivatives, Fair Value [Line Items]
Foreign Currency Note Payable, Noncurrent, after-tax	$ 89	$ 86
Foreign Currency Note Payable, Noncurrent, pre-tax	$ 580	572
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	$ 10	12
Derivatives not designated as hedges
Derivative instruments not designated as hedging instruments, asset, at fair value	32	33
Other noncurrent assets [Member]
Derivatives designated as hedges
Derivative asset designated as hedging instrument	77	85
Other current liabilities [Member]
Derivatives designated as hedges
Derivative liability designated as hedging instrument	23	22
Derivatives not designated as hedges
Derivative instruments not designated as hedging instruments, liability, at fair value	27	85
Other noncurrent liabilities [Member]
Derivatives designated as hedges
Derivative liability designated as hedging instrument	23	26
Currency exchange contracts [Member] | Other current assets [Member]
Derivatives not designated as hedges
Derivative instruments not designated as hedging instruments, asset, at fair value	32	31
Currency exchange contracts [Member] | Other current liabilities [Member]
Derivatives not designated as hedges
Derivative instruments not designated as hedging instruments, liability, at fair value	27	85
Commodity contracts [Member] | Other current assets [Member]
Derivatives not designated as hedges
Derivative instruments not designated as hedging instruments, asset, at fair value	0	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	0
Derivatives designated as hedges [Member] | Fair value hedging [Member] | Fixed-to-floating interest rate swaps [Member]
Derivatives designated as hedges
Notional amount	3,715	3,765
Derivatives designated as hedges [Member] | Fair value hedging [Member] | Fixed-to-floating interest rate swaps [Member] | Other current assets [Member]
Derivatives designated as hedges
Derivative asset designated as hedging instrument	0	1
Derivatives designated as hedges [Member] | Fair value hedging [Member] | Fixed-to-floating interest rate swaps [Member] | Other noncurrent assets [Member]
Derivatives designated as hedges
Derivative asset designated as hedging instrument	58	65
Derivatives designated as hedges [Member] | Fair value hedging [Member] | Fixed-to-floating interest rate swaps [Member] | Other current liabilities [Member]
Derivatives designated as hedges
Derivative liability designated as hedging instrument	1	0
Derivatives designated as hedges [Member] | Fair value hedging [Member] | Fixed-to-floating interest rate swaps [Member] | Other noncurrent liabilities [Member]
Derivatives designated as hedges
Derivative liability designated as hedging instrument	10	8
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	450
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	18	19
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	0	1
Derivatives designated as hedges [Member] | Cash Flow Hedging [Member] | Currency exchange contracts [Member]
Derivatives designated as hedges
Notional amount	858	802
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	10	11
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	22	22
Derivatives designated as hedges [Member] | Cash Flow Hedging [Member] | Currency exchange contracts [Member] | Other noncurrent liabilities [Member]
Derivatives designated as hedges
Derivative liability designated as hedging instrument	13	17
Derivatives not designated as hedges [Member] | Currency exchange contracts [Member]
Derivatives designated as hedges
Notional amount	3,975	5,333
Derivatives not designated as hedges [Member] | Commodity contracts [Member]
Derivatives designated as hedges
Notional amount	$ 7	$ 10
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	7 months	3 months
Minimum [Member] | Derivatives designated as hedges [Member] | Cash Flow Hedging [Member] | Forward Starting Floating-to-Fixed Interest Rate Swap [Member]
Derivatives, Fair Value [Line Items]
Derivative, term of contract	11 years	11 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 not designated as hedges [Member] | Currency exchange contracts [Member]
Derivatives, Fair Value [Line Items]
Derivative, term of contract	1 month	1 month
Minimum [Member] | Derivatives not designated as hedges [Member] | Commodity contracts [Member]
Derivatives, Fair Value [Line Items]
Derivative, term of contract	1 month	1 month
Maximum [Member] | Derivatives designated as hedges [Member] | Fair value hedging [Member] | Fixed-to-floating interest rate swaps [Member]
Derivatives, Fair Value [Line Items]
Derivative, term of contract	18 years	18 years
Maximum [Member] | Derivatives designated as hedges [Member] | Cash Flow Hedging [Member] | Forward Starting Floating-to-Fixed Interest Rate Swap [Member]
Derivatives, Fair Value [Line Items]
Derivative, term of contract	11 years	11 years
Maximum [Member] | Derivatives designated as hedges [Member] | Cash Flow Hedging [Member] | Currency exchange contracts [Member]
Derivatives, Fair Value [Line Items]
Derivative, term of contract	36 months	36 months
Maximum [Member] | Derivatives not designated as hedges [Member] | Currency exchange contracts [Member]
Derivatives, Fair Value [Line Items]
Derivative, term of contract	12 months	12 months
Maximum [Member] | Derivatives not designated as hedges [Member] | Commodity contracts [Member]
Derivatives, Fair Value [Line Items]
Derivative, term of contract	12 months	12 months

DERIVATIVE FINANCIAL INSTRUME47

DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES - Amounts Recognized in Accumulated Other Comprehensive Income (Details) - Cash flow hedges [Member] - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Interest expense - net [Member] | Forward Starting Floating-to-Fixed Interest Rate Swap [Domain]
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) recognized in other comprehensive (loss) income	$ 0	$ (9)
Gain (loss) reclassified from Accumulated other comprehensive loss	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	(1)	(22)
Gain (loss) reclassified from Accumulated other comprehensive loss	(4)	3
Cost of products sold or Interest expense - net [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) recognized in other comprehensive (loss) income	(1)	(31)
Gain (loss) reclassified from Accumulated other comprehensive loss	$ (4)	$ 3

DERIVATIVE FINANCIAL INSTRUME48

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
	Mar. 31, 2017	Mar. 31, 2016
Derivative Instruments, Gain (Loss) [Line Items]
Amounts recognized in net income	$ 0	$ 0
Fixed-to-floating interest rate swaps [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Amounts recognized in net income	(11)	76
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	$ 11	$ (76)

INVENTORY (Details)

INVENTORY (Details) - USD ($) $ in Millions	Mar. 31, 2017	Dec. 31, 2016
Inventory Disclosure [Abstract]
Raw materials	$ 884	$ 880
Work-in-process	418	396
Finished goods	1,140	1,074
Inventory at FIFO	2,442	2,350
Excess of FIFO over LIFO cost	(98)	(96)
Total inventory	$ 2,344	$ 2,254

BUSINESS SEGMENT INFORMATION (D

BUSINESS SEGMENT INFORMATION (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Business Segment Information
Net sales	$ 4,848	$ 4,813
Corporate
Interest expense - net	61	57
Pension and other postretirement benefits expense	(51)	(59)
Other corporate expense - net	(15)	(18)
Income before income taxes	464	442
Income tax expense	32	39
Net income	432	403
Less net loss for noncontrolling interests	0	1
Net income attributable to Eaton ordinary shareholders	432	404
Total business segments [Member]
Business Segment Information
Net sales	4,848	4,813
Segment operating profit	699	669
Total business segments [Member] | Electrical Products [Member]
Business Segment Information
Net sales	1,712	1,680
Segment operating profit	297	271
Total business segments [Member] | Electrical Systems and Services [Member]
Business Segment Information
Net sales	1,333	1,342
Segment operating profit	155	159
Total business segments [Member] | Hydraulics [Member]
Business Segment Information
Net sales	587	551
Segment operating profit	60	41
Total business segments [Member] | Aerospace [Member]
Business Segment Information
Net sales	428	445
Segment operating profit	79	80
Total business segments [Member] | Vehicle [Member]
Business Segment Information
Net sales	788	795
Segment operating profit	108	118
Corporate [Member]
Corporate
Amortization of intangible assets	(94)	(100)
Interest expense - net	(61)	(57)
Pension and other postretirement benefits expense	(11)	(14)
Other corporate expense - net	$ (69)	$ (56)

CONDENSED CONSOLIDATING FINAN51

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 FINAN52

CONDENSED CONSOLIDATING FINANCIAL STATEMENTS - Consolidating Statements of Comprehensive Income (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Consolidating Statements of Comprehensive Income, Captions [Line Items]
Net sales	$ 4,848	$ 4,813
Cost of products sold	3,310	3,291
Selling and administrative expense	885	892
Research and development expense	143	149
Interest expense (income) - net	61	57
Other expense (income) - net	(15)	(18)
Equity in loss (earnings) of subsidiaries, net of tax	0	0
Intercompany expense (income) - net	0	0
Income before income taxes	464	442
Income tax expense (benefit)	32	39
Net income	432	403
Less net loss (income) for noncontrolling interests	0	1
Net income attributable to Eaton ordinary shareholders	432	404
Other comprehensive income	263	273
Total comprehensive income (loss) attributable to Eaton ordinary shareholders	695	677
Eaton Corporation plc [Member]
Consolidating Statements of Comprehensive Income, Captions [Line Items]
Net sales	0	0
Cost of products sold	0	0
Selling and administrative expense	32	2
Research and development expense	0	0
Interest expense (income) - net	0	0
Other expense (income) - net	7	0
Equity in loss (earnings) of subsidiaries, net of tax	(581)	(504)
Intercompany expense (income) - net	110	98
Income before income taxes	432	404
Income tax expense (benefit)	0	0
Net income	432	404
Less net loss (income) for noncontrolling interests	0	0
Net income attributable to Eaton ordinary shareholders	432	404
Other comprehensive income	263	273
Total comprehensive income (loss) attributable to Eaton ordinary shareholders	695	677
Eaton Corporation [Member]
Consolidating Statements of Comprehensive Income, Captions [Line Items]
Net sales	1,572	1,538
Cost of products sold	1,253	1,196
Selling and administrative expense	326	365
Research and development expense	54	62
Interest expense (income) - net	60	53
Other expense (income) - net	0	(2)
Equity in loss (earnings) of subsidiaries, net of tax	(190)	(168)
Intercompany expense (income) - net	(39)	(36)
Income before income taxes	108	68
Income tax expense (benefit)	(3)	7
Net income	111	61
Less net loss (income) for noncontrolling interests	0	0
Net income attributable to Eaton ordinary shareholders	111	61
Other comprehensive income	60	44
Total comprehensive income (loss) attributable to Eaton ordinary shareholders	171	105
Other subsidiaries [Member]
Consolidating Statements of Comprehensive Income, Captions [Line Items]
Net sales	2,991	2,873
Cost of products sold	2,181	2,070
Selling and administrative expense	333	329
Research and development expense	42	38
Interest expense (income) - net	(4)	(3)
Other expense (income) - net	(21)	(14)
Equity in loss (earnings) of subsidiaries, net of tax	(107)	(95)
Intercompany expense (income) - net	(404)	(317)
Income before income taxes	971	865
Income tax expense (benefit)	17	31
Net income	954	834
Less net loss (income) for noncontrolling interests	(1)	0
Net income attributable to Eaton ordinary shareholders	953	834
Other comprehensive income	322	306
Total comprehensive income (loss) attributable to Eaton ordinary shareholders	1,275	1,140
Guarantors
Consolidating Statements of Comprehensive Income, Captions [Line Items]
Net sales	1,595	1,575
Cost of products sold	1,188	1,200
Selling and administrative expense	194	196
Research and development expense	47	49
Interest expense (income) - net	5	3
Other expense (income) - net	(1)	(2)
Equity in loss (earnings) of subsidiaries, net of tax	(872)	(673)
Intercompany expense (income) - net	333	255
Income before income taxes	701	547
Income tax expense (benefit)	16	1
Net income	685	546
Less net loss (income) for noncontrolling interests	0	0
Net income attributable to Eaton ordinary shareholders	685	546
Other comprehensive income	271	278
Total comprehensive income (loss) attributable to Eaton ordinary shareholders	956	824
Consolidating adjustments [Member]
Consolidating Statements of Comprehensive Income, Captions [Line Items]
Net sales	(1,310)	(1,173)
Cost of products sold	(1,312)	(1,175)
Selling and administrative expense	0	0
Research and development expense	0	0
Interest expense (income) - net	0	4
Other expense (income) - net	0	0
Equity in loss (earnings) of subsidiaries, net of tax	1,750	1,440
Intercompany expense (income) - net	0	0
Income before income taxes	(1,748)	(1,442)
Income tax expense (benefit)	2	0
Net income	(1,750)	(1,442)
Less net loss (income) for noncontrolling interests	1	1
Net income attributable to Eaton ordinary shareholders	(1,749)	(1,441)
Other comprehensive income	(653)	(628)
Total comprehensive income (loss) attributable to Eaton ordinary shareholders	$ (2,402)	$ (2,069)

CONDENSED CONSOLIDATING FINAN53

CONDENSED CONSOLIDATING FINANCIAL STATEMENTS - Condensed Consolidating Balance Sheets (Details) - USD ($) $ in Millions	Mar. 31, 2017	Dec. 31, 2016	Mar. 31, 2016	Dec. 31, 2015
Current assets
Cash	$ 222	$ 543	$ 333	$ 268
Short-term investments	301	203
Accounts receivable - net	3,673	3,560
Intercompany accounts receivable	0	0
Inventory	2,344	2,254
Prepaid expenses and other current assets	435	381
Total current assets	6,975	6,941
Property, plant and equipment - net	3,481	3,443
Other noncurrent assets
Goodwill	13,296	13,201
Other intangible assets	5,441	5,514
Deferred income taxes	439	360
Investment in subsidiaries	0	0
Intercompany loans receivables	0	0
Other assets	979	960
Total assets	30,611	30,419
Liabilities and shareholders’ equity
Short-term debt	208	14
Current portion of long-term debt	1,328	1,552
Accounts payable	1,891	1,718
Intercompany accounts payable	0	0
Accrued compensation	270	379
Other current liabilities	1,860	1,822
Total current liabilities	5,557	5,485
Noncurrent liabilities
Long-term debt	6,677	6,711
Pension liabilities	1,553	1,659
Other postretirement benefits liabilities	366	368
Deferred income taxes	319	321
Intercompany loans payable	0	0
Other noncurrent liabilities	940	934
Total noncurrent liabilities	9,855	9,993
Shareholders’ equity
Eaton shareholders' equity	15,157	14,897
Noncontrolling interests	42	44
Total equity	15,199	14,941
Total liabilities and equity	30,611	30,419
Consolidation, Eliminations [Member]
Current assets
Cash	0	0	0	0
Short-term investments	0	0
Accounts receivable - net	0	0
Intercompany accounts receivable	(8,080)	(8,615)
Inventory	(77)	(79)
Prepaid expenses and other current assets	24	25
Total current assets	(8,133)	(8,669)
Property, plant and equipment - net	0	0
Other noncurrent assets
Goodwill	0	0
Other intangible assets	0	0
Deferred income taxes	(755)	(772)
Investment in subsidiaries	(133,042)	(131,992)
Intercompany loans receivables	(67,125)	(66,264)
Other assets	0	0
Total assets	(209,055)	(207,697)
Liabilities and shareholders’ equity
Short-term debt	0	0
Current portion of long-term debt	0	0
Accounts payable	0	0
Intercompany accounts payable	(8,080)	(8,615)
Accrued compensation	0	0
Other current liabilities	(3)	(2)
Total current liabilities	(8,083)	(8,617)
Noncurrent liabilities
Long-term debt	0	0
Pension liabilities	0	0
Other postretirement benefits liabilities	0	0
Deferred income taxes	(755)	(772)
Intercompany loans payable	(67,125)	(66,264)
Other noncurrent liabilities	0	0
Total noncurrent liabilities	(67,880)	(67,036)
Shareholders’ equity
Eaton shareholders' equity	(133,097)	(132,050)
Noncontrolling interests	5	6
Total equity	(133,092)	(132,044)
Total liabilities and equity	(209,055)	(207,697)
Non-Guarantor Subsidiaries [Member]
Current assets
Cash	170	446	321	235
Short-term investments	301	203
Accounts receivable - net	2,057	1,975
Intercompany accounts receivable	3,621	3,633
Inventory	1,425	1,349
Prepaid expenses and other current assets	269	237
Total current assets	7,843	7,843
Property, plant and equipment - net	1,933	1,880
Other noncurrent assets
Goodwill	5,648	5,553
Other intangible assets	1,879	1,903
Deferred income taxes	262	228
Investment in subsidiaries	12,751	12,516
Intercompany loans receivables	56,946	56,598
Other assets	347	335
Total assets	87,609	86,856
Liabilities and shareholders’ equity
Short-term debt	14	6
Current portion of long-term debt	3	6
Accounts payable	1,163	1,093
Intercompany accounts payable	1,241	1,349
Accrued compensation	194	223
Other current liabilities	965	941
Total current liabilities	3,580	3,618
Noncurrent liabilities
Long-term debt	8	8
Pension liabilities	883	888
Other postretirement benefits liabilities	71	71
Deferred income taxes	358	361
Intercompany loans payable	1,425	1,252
Other noncurrent liabilities	400	396
Total noncurrent liabilities	3,145	2,976
Shareholders’ equity
Eaton shareholders' equity	80,847	80,224
Noncontrolling interests	37	38
Total equity	80,884	80,262
Total liabilities and equity	87,609	86,856
Guarantors [Member]
Current assets
Cash	9	4	6	7
Short-term investments	0	0
Accounts receivable - net	1,080	1,049
Intercompany accounts receivable	3,733	4,023
Inventory	652	642
Prepaid expenses and other current assets	41	42
Total current assets	5,515	5,760
Property, plant and equipment - net	700	706
Other noncurrent assets
Goodwill	6,293	6,293
Other intangible assets	3,396	3,442
Deferred income taxes	2	0
Investment in subsidiaries	73,741	72,938
Intercompany loans receivables	2,473	2,061
Other assets	140	134
Total assets	92,260	91,334
Liabilities and shareholders’ equity
Short-term debt	0	8
Current portion of long-term debt	326	296
Accounts payable	268	252
Intercompany accounts payable	3,068	3,115
Accrued compensation	35	58
Other current liabilities	308	291
Total current liabilities	4,005	4,020
Noncurrent liabilities
Long-term debt	909	936
Pension liabilities	137	161
Other postretirement benefits liabilities	99	99
Deferred income taxes	716	732
Intercompany loans payable	45,583	44,788
Other noncurrent liabilities	222	211
Total noncurrent liabilities	47,666	46,927
Shareholders’ equity
Eaton shareholders' equity	40,589	40,387
Noncontrolling interests	0	0
Total equity	40,589	40,387
Total liabilities and equity	92,260	91,334
Eaton Corporation [Member]
Current assets
Cash	43	92	6	26
Short-term investments	0	0
Accounts receivable - net	536	536
Intercompany accounts receivable	718	954
Inventory	344	342
Prepaid expenses and other current assets	101	77
Total current assets	1,742	2,001
Property, plant and equipment - net	848	857
Other noncurrent assets
Goodwill	1,355	1,355
Other intangible assets	166	169
Deferred income taxes	930	904
Investment in subsidiaries	13,659	13,743
Intercompany loans receivables	7,706	7,605
Other assets	492	491
Total assets	26,898	27,125
Liabilities and shareholders’ equity
Short-term debt	194	0
Current portion of long-term debt	999	1,250
Accounts payable	460	372
Intercompany accounts payable	3,596	3,870
Accrued compensation	41	98
Other current liabilities	583	591
Total current liabilities	5,873	6,181
Noncurrent liabilities
Long-term debt	5,760	5,767
Pension liabilities	533	610
Other postretirement benefits liabilities	196	198
Deferred income taxes	0	0
Intercompany loans payable	2,557	2,603
Other noncurrent liabilities	318	327
Total noncurrent liabilities	9,364	9,505
Shareholders’ equity
Eaton shareholders' equity	11,661	11,439
Noncontrolling interests	0	0
Total equity	11,661	11,439
Total liabilities and equity	26,898	27,125
Eaton Corporation plc [Member]
Current assets
Cash	0	1	$ 0	$ 0
Short-term investments	0	0
Accounts receivable - net	0	0
Intercompany accounts receivable	8	5
Inventory	0	0
Prepaid expenses and other current assets	0	0
Total current assets	8	6
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	32,891	32,795
Intercompany loans receivables	0	0
Other assets	0	0
Total assets	32,899	32,801
Liabilities and shareholders’ equity
Short-term debt	0	0
Current portion of long-term debt	0	0
Accounts payable	0	1
Intercompany accounts payable	175	281
Accrued compensation	0	0
Other current liabilities	7	1
Total current liabilities	182	283
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	17,560	17,621
Other noncurrent liabilities	0	0
Total noncurrent liabilities	17,560	17,621
Shareholders’ equity
Eaton shareholders' equity	15,157	14,897
Noncontrolling interests	0	0
Total equity	15,157	14,897
Total liabilities and equity	$ 32,899	$ 32,801

CONDENSED CONSOLIDATING FINAN54

CONDENSED CONSOLIDATING FINANCIAL STATEMENTS - Condensed Consolidating Statements of Cash Flows (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Condensed Consolidating Statements of Cash Flows, Captions [Line Items]
Net cash provided by (used in) operating activities	$ 463	$ 388
Investing activities
Capital expenditures for property, plant and equipment	(116)	(111)
Cash received from (paid for) acquisitions of businesses, net of cash acquired	0	1
Sales (purchases) of short-term investments - net	(93)	(53)
Investments in affiliates		0
Loans to affiliates	0	0
Repayments of loans from affiliates	0	0
Other - net	(20)	4
Net cash used in investing activities	(229)	(159)
Financing activities
Proceeds from borrowings	194	418
Payments on borrowings	(254)	(241)
Proceeds from borrowings from affiliates	0	0
Payments on borrowings from affiliates	0	0
Capital contributions from affiliates		0
Other intercompany financing activities	0	0
Cash dividends paid	(263)	(256)
Payments of Distributions to Affiliates	0
Exercise of employee stock options	38	17
Repurchase of shares	(255)	(100)
Other - net	(3)	2
Net cash used in financing activities	(563)	(177)
Effect of currency on cash	8	13
Total increase (decrease) in cash	(321)	65
Cash at the beginning of the period	543	268
Cash at the end of the period	222	333
Eaton Corporation plc [Member]
Condensed Consolidating Statements of Cash Flows, Captions [Line Items]
Net cash provided by (used in) operating activities	611	(139)
Investing activities
Capital expenditures for property, plant and equipment	0	0
Cash received from (paid for) acquisitions of businesses, net of cash acquired		0
Sales (purchases) of short-term investments - net	0	0
Investments in affiliates		(1,250)
Loans to affiliates	0	0
Repayments of loans from affiliates	0	0
Other - net	0	0
Net cash used in investing activities	0	(1,250)
Financing activities
Proceeds from borrowings	0	0
Payments on borrowings	0	0
Proceeds from borrowings from affiliates	668	1,738
Payments on borrowings from affiliates	(800)	(10)
Capital contributions from affiliates		0
Other intercompany financing activities	0	0
Cash dividends paid	(263)	(256)
Payments of Distributions to Affiliates	0
Exercise of employee stock options	38	17
Repurchase of shares	(255)	(100)
Other - net	0	0
Net cash used in financing activities	(612)	1,389
Effect of currency on cash	0	0
Total increase (decrease) in cash	(1)	0
Cash at the beginning of the period	1	0
Cash at the end of the period	0	0
Eaton Corporation [Member]
Condensed Consolidating Statements of Cash Flows, Captions [Line Items]
Net cash provided by (used in) operating activities	201	(36)
Investing activities
Capital expenditures for property, plant and equipment	(20)	(22)
Cash received from (paid for) acquisitions of businesses, net of cash acquired		0
Sales (purchases) of short-term investments - net	0	0
Investments in affiliates		0
Loans to affiliates	(6)	(101)
Repayments of loans from affiliates	19	1,255
Other - net	(11)	8
Net cash used in investing activities	(18)	1,140
Financing activities
Proceeds from borrowings	194	418
Payments on borrowings	(250)	(1)
Proceeds from borrowings from affiliates	1,107	264
Payments on borrowings from affiliates	(1,435)	(1,635)
Capital contributions from affiliates		0
Other intercompany financing activities	165	(162)
Cash dividends paid	0	0
Payments of Distributions to Affiliates	0
Exercise of employee stock options	0	0
Repurchase of shares	0	0
Other - net	0	2
Net cash used in financing activities	(232)	(1,124)
Effect of currency on cash	0	0
Total increase (decrease) in cash	(49)	(20)
Cash at the beginning of the period	92	26
Cash at the end of the period	43	6
Guarantors [Member]
Condensed Consolidating Statements of Cash Flows, Captions [Line Items]
Net cash provided by (used in) operating activities	470	75
Investing activities
Capital expenditures for property, plant and equipment	(26)	(23)
Cash received from (paid for) acquisitions of businesses, net of cash acquired		1
Sales (purchases) of short-term investments - net	0	2
Investments in affiliates		0
Loans to affiliates	0	0
Repayments of loans from affiliates	0	0
Other - net	3	11
Net cash used in investing activities	(23)	(9)
Financing activities
Proceeds from borrowings	0	0
Payments on borrowings	0	(240)
Proceeds from borrowings from affiliates	662	158
Payments on borrowings from affiliates	(17)	(1,247)
Capital contributions from affiliates		1,250
Other intercompany financing activities	(282)	16
Cash dividends paid	0	0
Payments of Distributions to Affiliates	(800)
Exercise of employee stock options	0	0
Repurchase of shares	0	0
Other - net	(1)	0
Net cash used in financing activities	(442)	(67)
Effect of currency on cash	0	0
Total increase (decrease) in cash	5	(1)
Cash at the beginning of the period	4	7
Cash at the end of the period	9	6
Other subsidiaries [Member]
Condensed Consolidating Statements of Cash Flows, Captions [Line Items]
Net cash provided by (used in) operating activities	688	488
Investing activities
Capital expenditures for property, plant and equipment	(70)	(66)
Cash received from (paid for) acquisitions of businesses, net of cash acquired		0
Sales (purchases) of short-term investments - net	(93)	(55)
Investments in affiliates		(1,250)
Loans to affiliates	(2,435)	(2,158)
Repayments of loans from affiliates	2,250	1,645
Other - net	(12)	(15)
Net cash used in investing activities	(360)	(1,899)
Financing activities
Proceeds from borrowings	0	0
Payments on borrowings	(4)	0
Proceeds from borrowings from affiliates	4	99
Payments on borrowings from affiliates	(17)	(8)
Capital contributions from affiliates		1,250
Other intercompany financing activities	117	146
Cash dividends paid	0	0
Payments of Distributions to Affiliates	707
Exercise of employee stock options	0	0
Repurchase of shares	0	0
Other - net	(2)	0
Net cash used in financing activities	(612)	1,484
Effect of currency on cash	8	13
Total increase (decrease) in cash	(276)	86
Cash at the beginning of the period	446	235
Cash at the end of the period	170	321
Consolidation, Eliminations [Member]
Financing activities
Payments of Distributions to Affiliates	(1,507)
Consolidation, Eliminations [Member]
Condensed Consolidating Statements of Cash Flows, Captions [Line Items]
Net cash provided by (used in) operating activities	(1,507)	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
Sales (purchases) of short-term investments - net	0	0
Investments in affiliates		2,500
Loans to affiliates	2,441	2,259
Repayments of loans from affiliates	(2,269)	(2,900)
Other - net	0	0
Net cash used in investing activities	172	1,859
Financing activities
Proceeds from borrowings	0	0
Payments on borrowings	0	0
Proceeds from borrowings from affiliates	(2,441)	(2,259)
Payments on borrowings from affiliates	2,269	2,900
Capital contributions from affiliates		(2,500)
Other intercompany financing activities	0	0
Cash dividends paid	0	0
Exercise of employee stock options	0	0
Repurchase of shares	0	0
Other - net	0	0
Net cash used in financing activities	1,335	(1,859)
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