10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

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

For the quarterly period ended March 31, 2014

Commission file number 000-54863

EATON CORPORATION plc

(Exact name of registrant as specified in its charter)

Ireland	98-1059235
(State or other jurisdiction of incorporation or organization)	(IRS Employer Identification Number)
Fitzwilliam Hall, Fitzwilliam Place, Dublin 2, Ireland	-
(Address of principal executive offices)	(Zip Code)

+1 (440) 523-5000

(Registrant's telephone number, including area code)

Not applicable

(Former name, former address and former fiscal year if changed since last report)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes þ No o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes þ No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer þ	Accelerated filer o	Non-accelerated filer o	Smaller reporting company o
		(Do not check if a smaller reporting company)

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

There were 476.7 million Ordinary Shares outstanding as of March 31, 2014.

TABLE OF CONTENTS

EX-10.1

EX-12

EX-31.1

EX-31.2

EX-32.1

EX-32.2

EX-101 INSTANCE DOCUMENT

EX-101 SCHEMA DOCUMENT

EX-101 CALCULATION LINKBASE DOCUMENT

EX-101 DEFINITION LINKBASE DOCUMENT

EX-101 LABELS LINKBASE DOCUMENT

EX-101 PRESENTATION LINKBASE DOCUMENT

PART I — FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS.

EATON CORPORATION plc

CONSOLIDATED STATEMENTS OF INCOME

	Three months ended March 31
(In millions except for per share data)	2014			2013
Net sales	$	5,492		$	5,310
Cost of products sold	3,858			3,735
Selling and administrative expense	962			958
Research and development expense	162			152
Interest expense - net	62			75
Other income - net	(5		)	(10		)
Income before income taxes	453			400
Income tax expense	12			20
Net income	441			380
Less net income for noncontrolling interests	(2		)	(2		)
Net income attributable to Eaton ordinary shareholders	$	439		$	378
Net income per ordinary share
Diluted	$	0.92		$	0.79
Basic	0.92			0.80
Weighted-average number of ordinary shares outstanding
Diluted	478.8			475.1
Basic	475.8			471.9
Cash dividends declared per ordinary share	$	0.49		$	0.42

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

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EATON CORPORATION plc

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

	Three months ended March 31
(In millions)	2014			2013
Net income	$	441		$	380
Less net income for noncontrolling interests	(2		)	(2		)
Net income attributable to Eaton ordinary shareholders	439			378
Other comprehensive income, net of tax
Currency translation and related hedging instruments	(47		)	(281		)
Pensions and other postretirement benefits	50			53
Cash flow hedges	—			(7		)
Other comprehensive income (loss) attributable to Eaton    ordinary shareholders	3			(235		)
Total comprehensive income attributable to Eaton   ordinary shareholders	$	442		$	143

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

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EATON CORPORATION plc

CONDENSED CONSOLIDATED BALANCE SHEETS

(In millions)	March 31, 2014		December 31, 2013
Assets
Current assets
Cash	$	784	$	915
Short-term investments	360		794
Accounts receivable - net	3,889		3,648
Inventory	2,532		2,382
Deferred income taxes	554		577
Prepaid expenses and other current assets	564		415
Total current assets	8,683		8,731
Property, plant and equipment - net	3,806		3,833
Other noncurrent assets
Goodwill	14,450		14,495
Other intangible assets	7,078		7,186
Deferred income taxes	257		240
Other assets	988		1,006
Total assets	$	35,262	$	35,491
Liabilities and shareholders’ equity
Current liabilities
Short-term debt	$	8	$	13
Current portion of long-term debt	316		567
Accounts payable	2,076		1,960
Accrued compensation	334		461
Other current liabilities	2,071		1,913
Total current liabilities	4,805		4,914
Noncurrent liabilities
Long-term debt	8,991		8,969
Pension liabilities	1,228		1,465
Other postretirement benefits liabilities	666		668
Deferred income taxes	1,296		1,313
Other noncurrent liabilities	1,165		1,299
Total noncurrent liabilities	13,346		13,714
Shareholders’ equity
Eaton shareholders’ equity	17,037		16,791
Noncontrolling interests	74		72
Total equity	17,111		16,863
Total liabilities and equity	$	35,262	$	35,491

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

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EATON CORPORATION plc

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

	Three months ended March 31
(In millions)	2014			2013
Operating activities
Net income	$	441		$	380
Adjustments to reconcile to net cash provided by operating activities
Depreciation and amortization	249			245
Deferred income taxes	(24		)	104
Pension and other postretirement benefits expense	99			87
Contributions to pension plans	(272		)	(208		)
Excess tax benefit from equity-based compensation	(20		)	(16		)
Changes in working capital	(370		)	(546		)
Other - net	(91		)	54
Net cash provided by operating activities	12			100
Investing activities
Capital expenditures for property, plant and equipment	(110		)	(122		)
Sales of short-term investments - net	431			132
Proceeds from sale of business	3			761
Other - net	(20		)	2
Net cash provided by investing activities	304			773
Financing activities
Payments on borrowings	(257		)	(687		)
Cash dividends paid	(229		)	(194		)
Exercise of employee stock options	23			56
Excess tax benefit from equity-based compensation	20			16
Other - net	—			(1		)
Net cash used in financing activities	(443		)	(810		)
Effect of currency on cash	(4		)	(1		)
Total (decrease) increase in cash	(131		)	62
Cash at the beginning of the period	915			577
Cash at the end of the period	$	784		$	639

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

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EATON CORPORATION plc

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

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

Note 1. BASIS OF PRESENTATION

The accompanying unaudited condensed consolidated financial statements of Eaton Corporation plc (Eaton or the Company) have been prepared in accordance with generally accepted accounting principles for interim financial information, the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles 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 2013 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 Exchange Commission.

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

Note 2. ACQUISITIONS AND SALE OF BUSINESSES

Eaton's most recently acquired businesses, and the related annual sales prior to acquisition, are summarized below:

Acquired businesses	Date of transaction	Business segment	Annual sales
Cooper Industries plc (Cooper)	November 30, 2012	Electrical Products; Electrical Systems and Services	$5,409 for 2011
A diversified global manufacturer of electrical products and systems, with brands including Bussmann electrical and electronic fuses; Crouse-Hinds and CEAG explosion-proof electrical equipment; Halo and Metalux lighting fixtures; and Kyle and McGraw-Edison power systems products.
Rolec Comercial e Industrial S.A.	September 28, 2012	Electrical Systems and Services	$85 for the 12 months ended September 30, 2012
A Chilean manufacturer of integrated power assemblies and low- and medium-voltage switchgear, and a provider of engineering services serving mining and other heavy industrial applications in Chile and Peru.
Jeil Hydraulics Co., Ltd.	July 6, 2012	Hydraulics	$189 for 2011
A Korean manufacturer of track drive motors, swing drive motors, main control valves and remote control valves for the construction equipment market.
Polimer Kaucuk Sanayi ve Pazarlama A.S.	June 1, 2012	Hydraulics	$335 for 2011
A Turkish manufacturer of hydraulic and industrial hose for construction, mining, agriculture, oil and gas, manufacturing, food and beverage, and chemicals markets. This business sells its products under the SEL brand name.
Gycom Electrical Low-Voltage Power Distribution, Control and Automation	June 1, 2012	Electrical Systems and Services	$24 for 2011
A Swedish electrical low-voltage power distribution, control and automation components business.

See Note 3 for information about acquisition integration charges and transaction costs related to these acquisitions.

Sale of Aerospace Power Distribution Management Solutions and Integrated Cockpit Solutions

On January 20, 2014, Eaton announced it entered into an agreement to sell the Aerospace Power Distribution Management Solutions and Integrated Cockpit Solutions businesses to Safran for $270. The sale, which was approved by Eaton's Board of Directors, is subject to regulatory approvals and other customary closing conditions. The transaction is expected to close in the second quarter of 2014.

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Note 3. ACQUISITION INTEGRATION AND RESTRUCTURING CHARGES

Eaton incurs integration charges and transaction costs related to acquired businesses. A summary of these charges follows:

	Three months ended March 31
	2014		2013
Acquisition integration charges
Electrical Products	$	29	$	3
Electrical Systems and Services	26		5
Hydraulics	4		12
Total business segments	59		20
Corporate	7		6
Total acquisition integration charges	66		26
Transaction costs
Corporate	—		5
Total transaction costs	—		5
Total acquisition integration charges and transaction costs before income taxes	$	66	$	31
Total after income taxes	$	44	$	22
Per ordinary share - diluted	$	0.09	$	0.05

Business segment integration charges in the first quarter of 2014 were related primarily to the integration of Cooper. Business segment integration charges in the first quarter of 2013 were related primarily to the integrations of Cooper, Polimer Kaucuk Sanayi ve Pazarlama, Jeil Hydraulics, and Rolec Comercial e Industrial S.A. These charges were included in Cost of products sold or Selling and administrative expense, as appropriate. In Business Segment Information the charges reduced Operating profit of the related business segment.

Corporate integration charges in 2014 and 2013 were related primarily to the acquisition of Cooper. These charges were included in Selling and administrative expense. In Business Segment Information the charges were included in Other corporate expense - net.

Acquisition-related transaction costs, such as investment banking, legal, other professional fees, and costs associated with change in control agreements, are not included as a component of consideration transferred in an acquisition but are expensed as incurred. Acquisition-related transaction costs in 2013 were related to the acquisition of Cooper. These charges were included in Selling and administrative expense, Interest expense - net and Other income - net. In Business Segment Information the charges were included in Interest expense - net and Other corporate expense - net.

See Note 2 for additional information about business acquisitions.

Restructuring Charges

During 2013, Eaton undertook restructuring activities related to the acquisition and integration of Cooper in an effort to gain efficiencies in selling, marketing, traditional back-office functions and manufacturing and distribution. These actions resulted in charges totaling $36 in 2013 and $41 in the first quarter of 2014, comprised primarily of severance costs. These restructuring initiatives are expected to continue through 2015.

Restructuring charges were included in Cost of products sold or Selling and administrative expense, as appropriate. In Business Segment Information, the charges reduced Operating profit of the related business segment. See Note 12 for additional information about business segments. As of March 31, 2014 and December 31, 2013, liabilities related to restructuring actions totaled $63 and $32, respectively.

During April 2014, the Company implemented certain restructuring activities in an effort to gain efficiencies in the Vehicle, Hydraulics and Aerospace business segments. These restructuring activities resulted in a charge of $40, comprised primarily of severance costs.

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Note 4. GOODWILL

A summary of goodwill follows:

	March 31, 2014		December 31, 2013
Electrical Products	$	7,153	$	7,189
Electrical Systems and Services	4,508		4,517
Hydraulics	1,384		1,385
Aerospace	1,048		1,048
Vehicle	357		356
Total goodwill	$	14,450	$	14,495

The decrease in goodwill in 2014 was due to currency translation.

Note 5. RETIREMENT BENEFITS PLANS

The components of retirement benefits expense follow:

	United States pension benefit expense						Non-United States pension benefit expense						Other postretirement benefits expense
	Three months ended March 31
	2014			2013			2014			2013			2014			2013
Service cost	$	29		$	32		$	16		$	15		$	4		$	5
Interest cost	40			37			22			20			9			9
Expected return on plan assets	(61		)	(57		)	(25		)	(21		)	(1		)	(2		)
Amortization	23			33			7			7			2			3
	31			45			20			21			14			15
Settlement loss	34			6			—			—			—			—
Total expense	$	65		$	51		$	20		$	21		$	14		$	15

Note 6. 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 (including asbestos claims), antitrust matters and employment-related matters. 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. This judgment is based on an alleged violation of an agency agreement between Raysul and Saturnia. At March 31, 2014, the Company has a total accrual of 79 Brazilian Reais related to this matter ($35 based on current exchange rates), comprised of 60 Brazilian Reais recognized in the fourth quarter of 2010 ($27 based on current exchange rates) with an additional 19 Brazilian Reais recognized through March 31, 2014 ($8 based on current exchange rates). In 2010, Eaton filed motions for clarification with the Brazilian court of appeals which were denied on April 6, 2011. Eaton Holding and Eaton Ltda. filed appeals on various issues to the Superior Court of Justice in Brasilia. In April 2013, the Superior Court of Justice ruled in favor of Raysul. Additional motions for clarification have been filed with the Superior Court of Justice in Brasilia and an additional appeal is being considered. The Company expects that any sum it may be required to pay in connection with this matter will not exceed the amount of the recorded liability.

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On October 5, 2006, ZF Meritor LLC and Meritor Transmission Corporation (collectively, Meritor) filed an action against Eaton in the United States District Court for Delaware. The action sought damages, which would be trebled under United States antitrust laws, as well as injunctive relief and costs. The suit alleged that Eaton engaged in anti-competitive conduct against Meritor in the sale of heavy-duty truck transmissions in North America. Following a four week trial on liability only, on October 8, 2009, the jury returned a verdict in favor of Meritor. Eaton firmly believes that it competes fairly and honestly for business in the marketplace, and that at no time did it act in an anti-competitive manner. During an earlier stage in the case, the judge concluded that damage estimates contained in a report filed by Meritor were not based on reliable data and the report was specifically excluded from the case. On November 3, 2009, Eaton filed a motion for judgment as a matter of law and to set aside the verdict. That motion was denied on March 10, 2011. On March 14, 2011, Eaton filed a motion for entry of final judgment of liability, zero damages and no injunctive relief. That motion was denied on June 9, 2011. On August 19, 2011, the Court entered final judgment of liability but awarded zero damages to plaintiffs. The Court also entered an injunction prohibiting Eaton from offering rebates or other incentives based on purchasing targets but stayed the injunction pending appeal. Eaton appealed the liability finding and the injunction to the Third Circuit Court of Appeals. Meritor cross-appealed the finding of zero damages. On September 28, 2012, the Third Circuit Court of Appeals affirmed the District Court's denial of Eaton's motion for judgment as a matter of law, and let stand the jury verdict in favor of Meritor. The Third Circuit Court of Appeals also ruled that the plaintiffs' damages report was properly excluded, but reversed the judgment of zero damages and ordered that the District Court must allow plaintiffs a limited opportunity to amend the damages report, which may be re-considered for reliability and admissibility. Injunctive relief also was vacated. On remand to the District Court, plaintiffs submitted an amended damages report in which their expert opined that damages range between $475 and $800. On December 20, 2013, the District court ruled that the plaintiffs' damages expert could testify at trial and be subjected to cross-examination. The District Court has scheduled a jury trial for the second quarter of 2014. Eaton's damages expert opined that damages are zero. An estimate of any potential loss related to this action cannot be made at this time.

Frisby Corporation, now known as Triumph Actuation Systems, LLC, and other claimants (collectively, the Frisby Parties) asserted claims alleging, among other things, unfair competition, defamation, malicious prosecution, deprivation of civil rights, and antitrust in the Hinds County Circuit Court of Mississippi in 2004 and in the Federal District Court of North Carolina in 2011. Eaton had asserted claims against the Frisby Parties regarding improper use of trade secrets and these claims were dismissed by the Hinds County Circuit Court. On September 25, 2013, the Mississippi Supreme Court issued an order that stayed all proceedings in the Hinds County Circuit Court pending further order of the Mississippi Supreme Court. On November 21, 2013, the Mississippi Supreme Court upheld the dismissal of Eaton's claims but did not lift the stay on all proceedings in the Hinds County Circuit Court. Prior to the stay, the Frisby Parties submitted various expert damage designations related to their claims to the Hinds County Circuit Court, claiming damages of at least $376. Eaton disputes liability to the Frisby Parties and Eaton's experts dispute the amount of damages claimed by the experts for the Frisby Parties. An estimate of any potential loss related to this action cannot be made at this time.

Note 7. INCOME TAXES

The effective income tax rate for the first quarter of 2014 was 3% compared to 5% for the first quarter of 2013. The lower effective tax rate in the first quarter of 2014 was primarily attributable to a more favorable geographic mix of income.

Note 8. EQUITY

The changes in Shareholders’ equity follow:

	Eaton shareholders’ equity			Noncontrolling interests		Total equity
Balance at December 31, 2013	$	16,791		$	72	$	16,863
Net income	439			2		441
Other comprehensive income	3			—		3
Cash dividends paid and accrued	(234		)	—		(234		)
Issuance of shares under equity-based compensation plans - net	38			—		38
Balance at March 31, 2014	$	17,037		$	74	$	17,111

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The changes in Accumulated other comprehensive (loss) income follow:

	Currency translation and related hedging instruments			Pensions and other postretirement benefits			Cash flow hedges			Total
Balance at December 31, 2013	$	(395	)	$	(1,170	)	$	5		$	(1,560	)
Other comprehensive (loss) income     before reclassifications	(47		)	9			1			(37		)
Amounts reclassified from Accumulated other    comprehensive (loss) income	—			41			(1		)	40
Net current-period other comprehensive    (loss) income	(47		)	50			—			3
Balance at March 31, 2014	$	(442	)	$	(1,120	)	$	5		$	(1,557	)

The reclassifications out of Accumulated other comprehensive loss follow:

	Three months ended March 31, 2014			Consolidated Statements of Income classification
Amortization of defined benefit pension items
Actuarial loss	$	(66	)	1
Tax benefit	25
Total, net of tax	(41		)
Loss on cash flow hedges
Currency exchange contracts	2			Cost of products sold
Tax expense	(1		)
Total, net of tax	1
Total reclassifications for the period	$	(40	)

¹ These components of Accumulated other comprehensive loss are included in the computation of net periodic pension cost. See Note 5 for additional information about defined benefit pension items.

Net Income per Ordinary Share

A summary of the calculation of net income per ordinary share attributable to shareholders follows:

	Three months ended March 31
(Shares in millions)	2014		2013
Net income attributable to Eaton ordinary shareholders	$	439	$	378
Weighted-average number of ordinary shares outstanding - diluted	478.8		475.1
Less dilutive effect of equity-based compensation	3.0		3.2
Weighted-average number of ordinary shares outstanding - basic	475.8		471.9
Net income per ordinary share
Diluted	$	0.92	$	0.79
Basic	0.92		0.80

For the first quarter 2014 and 2013, 0.1 million stock options were excluded from the calculation of diluted net income per ordinary share because the exercise price of the options exceeded the average market price of the ordinary shares during the period and their effect, accordingly, would have been antidilutive.

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Note 9. FAIR VALUE MEASUREMENTS

Fair value is measured based on an exit price, representing the amount that would be received to sell an asset or paid to satisfy a liability in an orderly transaction between market participants. Fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions, a fair value hierarchy is established, which categorizes the inputs used in measuring fair value as follows: (Level 1) observable inputs such as quoted prices in active markets; (Level 2) inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and (Level 3) unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions.

A summary of financial instruments recognized at fair value, and the fair value measurements used, follows:

	Total			Quoted prices in active markets for identical assets (Level 1)		Other observable inputs (Level 2)			Unobservable inputs (Level 3)
March 31, 2014
Cash	$	784		$	784	$	—		$	—
Short-term investments	360			360		—			—
Net derivative contracts	1			—		1			—
Long-term debt converted to floating interest rates by    interest rate swaps - net	(10		)	—		(10		)	—
December 31, 2013
Cash	$	915		$	915	$	—		$	—
Short-term investments	794			794		—			—
Net derivative contracts	(35		)	—		(35		)	—
Long-term debt converted to floating interest rates by    interest rate swaps - net	(39		)	—		(39		)	—

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 recognized using unobservable inputs.

Other Fair Value Measurements

Long-term debt and the current portion of long-term debt had a carrying value of $9,307 and fair value of $9,683 at March 31, 2014 compared to $9,536 and $9,665, respectively, at December 31, 2013. The fair value of Eaton's debt instruments was estimated using prevailing market interest rates on debt with similar creditworthiness, terms and maturities and is considered a Level 2 fair value measurement.

Note 10. 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.

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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 was $97 and $95, net of tax, at March 31, 2014 and December 31, 2013, respectively.

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 long-term assets		Other current liabilities		Other long-term liabilities		Type of hedge	Term
March 31, 2014
Derivatives designated as hedges
Fixed-to-floating interest rate swaps	$	3,290	$	—	$	39	$	—	$	49	Fair value	3 to 20 years
Floating-to-fixed interest rate swaps	300		—		—		—		—		Cash flow	3 months
Currency exchange contracts	495		12		—		3		—		Cash flow	12 to 36 months
Commodity contracts	1		—		—		—		—		Cash flow	1 to 12 months
Total			$	12	$	39	$	3	$	49
Derivatives not designated as hedges
Currency exchange contracts	$	4,160	$	23			$	21				1 to 12 months

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	Notional amount		Other  current assets		Other long-term assets		Other current liabilities		Other long-term liabilities		Type of hedge	Term
December 31, 2013
Derivatives designated as hedges
Fixed-to-floating interest rate swaps	$	3,090	$	1	$	36	$	—	$	76	Fair value	3 months to 20 years
Floating-to-fixed interest rate swaps	300		—		—		1		—		Cash flow	6 months
Currency exchange contracts	393		12		—		3		—		Cash flow	12 to 36 months
Commodity contracts	1		—		—		—		—		Cash flow	1 to 12 months
Total			$	13	$	36	$	4	$	76
Derivatives not designated as hedges
Currency exchange contracts	$	4,277	$	22			$	26				1 to 12 months

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.

Amounts recognized in Accumulated other comprehensive income (loss) follow:

	Three months ended March 31
	2014				2013
	Gain (loss) recognized in Accumulated other comprehensive income (loss)		Gain (loss) reclassified from Accumulated other comprehensive income (loss)		Gain (loss) recognized in Accumulated other comprehensive income (loss)			Gain (loss) reclassified from Accumulated other comprehensive income (loss)
Derivatives designated as cash flow hedges
Currency exchange contracts	$	2	$	2	$	(9	)	$	1

Gains and losses reclassified from Accumulated other comprehensive income to the Consolidated Statements of Income were recognized in Cost of products sold.

Amounts recognized in net income follow:

	Three months ended March 31
	2014			2013
Derivatives designated as fair value hedges
Fixed-to-floating interest rate swaps	$	29		$	(8	)
Related long-term debt converted to floating interest rates by interest rate swaps	(29		)	8
	$	—		$	—

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

13

Note 11. INVENTORY

The components of inventory follow:

	March 31, 2014			December 31, 2013
Raw materials	$	1,103		$	955
Work-in-process	323			428
Finished goods	1,226			1,115
Inventory at FIFO	2,652			2,498
Excess of FIFO over LIFO cost	(120		)	(116		)
Total inventory	$	2,532		$	2,382

Note 12. 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. For additional information regarding Eaton’s business segments, see Note 14 to the Consolidated Financial Statements contained in the 2013 Form 10-K.

	Three months ended March 31
	2014			2013
Net sales
Electrical Products	$	1,726		$	1,660
Electrical Systems and Services	1,524			1,521
Hydraulics	782			756
Aerospace	464			434
Vehicle	996			939
Total net sales	$	5,492		$	5,310
Segment operating profit
Electrical Products	$	250		$	241
Electrical Systems and Services	169			210
Hydraulics	108			78
Aerospace	62			62
Vehicle	151			132
Total segment operating profit	740			723
Corporate
Amortization of intangible assets	(110		)	(107		)
Interest expense - net	(62		)	(75		)
Pension and other postretirement benefits expense	(51		)	(38		)
Inventory step-up adjustment	—			(33		)
Other corporate expense - net	(64		)	(70		)
Income before income taxes	453			400
Income tax expense	12			20
Net income	441			380
Less net income for noncontrolling interests	(2		)	(2		)
Net income attributable to Eaton ordinary shareholders	$	439		$	378

14

Note 13. CONDENSED CONSOLIDATING FINANCIAL STATEMENTS

On November 20, 2012, Eaton Corporation issued senior notes (the Senior Notes) totaling $4,900 to finance part of the cash portion of the acquisition of Cooper. Eaton and certain other of Eaton's principal 100% owned 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.

CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME FOR THE THREE MONTHS ENDED MARCH 31, 2014
	Eaton Corporation plc			Eaton Corporation			Guarantors			Other subsidiaries			Consolidating adjustments			Total
Net sales	$	—		$	1,667		$	1,641		$	3,291		$	(1,107	)	$	5,492
Cost of products sold	—			1,342			1,218			2,392			(1,094		)	3,858
Selling and administrative expense	2			361			200			399			—			962
Research and development expense	—			60			50			52			—			162
Interest expense (income) - net	—			59			7			(6		)	2			62
Other expense (income) - net	—			5			3			(13		)	—			(5		)
Equity in (earnings) loss of    subsidiaries, net of tax	(469		)	(207		)	(485		)	(201		)	1,362			—
Intercompany expense (income) - net	28			(71		)	120			(77		)	—			—
Income before income taxes	439			118			528			745			(1,377		)	453
Income tax (benefit) expense	—			(25		)	(7		)	49			(5		)	12
Net income	439			143			535			696			(1,372		)	441
Less net income for    noncontrolling interests	—			—			—			(2		)	—			(2		)
Net income attributable to    Eaton ordinary shareholders	$	439		$	143		$	535		$	694		$	(1,372	)	$	439
Other comprehensive income (loss)	$	3		$	28		$	23		$	(15	)	$	(36	)	$	3
Total comprehensive income    attributable to Eaton    ordinary shareholders	$	442		$	171		$	558		$	679		$	(1,408	)	$	442

15

CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME FOR THE THREE MONTHS ENDED MARCH 31, 2013
	Eaton Corporation plc			Eaton Corporation			Guarantors			Other subsidiaries			Consolidating adjustments			Total
Net sales	$	—		$	1,588		$	1,573		$	3,273		$	(1,124	)	$	5,310
Cost of products sold	—			1,239			1,195			2,425			(1,124		)	3,735
Selling and administrative expense	2			341			198			417			—			958
Research and development expense	—			58			47			47			—			152
Interest expense (income) - net	—			74			7			(6		)	—			75
Other (income) expense - net	—			(5		)	8			(13		)	—			(10		)
Equity in (earnings) loss of    subsidiaries, net of tax	(444		)	(309		)	(567		)	(166		)	1,486			—
Intercompany expense (income) - net	64			(102		)	176			(138		)	—			—
Income before income taxes	378			292			509			707			(1,486		)	400
Income tax (benefit) expense	—			(2		)	(37		)	59			—			20
Net income	378			294			546			648			(1,486		)	380
Less net income for    noncontrolling interests	—			—			—			(2		)	—			(2		)
Net income attributable to    Eaton ordinary shareholders	$	378		$	294		$	546		$	646		$	(1,486	)	$	378
Other comprehensive loss	$	(235	)	$	(22	)	$	(233	)	$	(391	)	$	646		$	(235	)
Total comprehensive income    attributable to Eaton    ordinary shareholders	$	143		$	272		$	313		$	255		$	(840	)	$	143

16

CONDENSED CONSOLIDATING BALANCE SHEETS MARCH 31, 2014
	Eaton Corporation plc		Eaton Corporation		Guarantors		Other subsidiaries		Consolidating adjustments			Total
Assets
Current assets
Cash	$	8	$	46	$	12	$	718	$	—		$	784
Short-term investments	—		—		35		325		—			360
Accounts receivable - net	—		506		986		2,397		—			3,889
Intercompany accounts    receivable	10		682		3,508		4,900		(9,100		)	—
Inventory	—		368		656		1,558		(50		)	2,532
Prepaid expenses and    other current assets	—		473		156		476		13			1,118
Total current assets	18		2,075		5,353		10,374		(9,137		)	8,683
Property, plant and    equipment - net	—		966		765		2,075		—			3,806
Other noncurrent assets
Goodwill	—		1,382		6,301		6,767		—			14,450
Other intangible assets	—		207		3,949		2,922		—			7,078
Deferred income taxes	—		826		12		153		(734		)	257
Investment in subsidiaries	25,427		9,057		41,344		8,701		(84,529		)	—
Intercompany loans receivable	—		7,872		2,643		19,840		(30,355		)	—
Other assets	—		417		183		388		—			988
Total assets	$	25,445	$	22,802	$	60,550	$	51,220	$	(124,755	)	$	35,262
Liabilities and    shareholders’ equity
Current liabilities
Short-term debt	$	—	$	—	$	—	$	8	$	—		$	8
Current portion of    long-term debt	—		301		1		14		—			316
Accounts payable	—		475		391		1,210		—			2,076
Intercompany accounts payable	10		3,609		3,626		1,855		(9,100		)	—
Accrued compensation	—		48		42		244		—			334
Other current liabilities	10		667		381		1,017		(4		)	2,071
Total current liabilities	20		5,100		4,441		4,348		(9,104		)	4,805
Noncurrent liabilities
Long-term debt	—		7,720		1,259		17		(5		)	8,991
Pension liabilities	—		375		79		774		—			1,228
Other postretirement    benefits liabilities	—		402		171		93		—			666
Deferred income taxes	—		—		1,287		743		(734		)	1,296
Intercompany loans payable	8,388		2,669		18,084		1,214		(30,355		)	—
Other noncurrent liabilities	—		545		155		465		—			1,165
Total noncurrent liabilities	8,388		11,711		21,035		3,306		(31,094		)	13,346
Shareholders’ equity
Eaton shareholders' equity	17,037		5,991		35,074		43,499		(84,564		)	17,037
Noncontrolling interests	—		—		—		67		7			74
Total equity	17,037		5,991		35,074		43,566		(84,557		)	17,111
Total liabilities and equity	$	25,445	$	22,802	$	60,550	$	51,220	$	(124,755	)	$	35,262

17

CONDENSED CONSOLIDATING BALANCE SHEETS DECEMBER 31, 2013
	Eaton Corporation plc		Eaton Corporation		Guarantors		Other subsidiaries		Consolidating adjustments			Total
Assets
Current assets
Cash	$	3	$	51	$	10	$	851	$	—		$	915
Short-term investments	—		—		134		660		—			794
Accounts receivable - net	—		473		922		2,253		—			3,648
Intercompany accounts    receivable	5		471		3,368		4,470		(8,314		)	—
Inventory	—		344		609		1,466		(37		)	2,382
Prepaid expenses and    other current assets	—		458		175		350		9			992
Total current assets	8		1,797		5,218		10,050		(8,342		)	8,731
Property, plant and    equipment - net	—		982		761		2,090		—			3,833
Other noncurrent assets
Goodwill	—		1,382		6,350		6,763		—			14,495
Other intangible assets	—		211		3,996		2,979		—			7,186
Deferred income taxes	—		839		3		145		(747		)	240
Investment in subsidiaries	24,940		8,853		40,776		8,473		(83,042		)	—
Intercompany loans receivable	—		8,019		2,518		18,776		(29,313		)	—
Other assets	—		450		186		370		—			1,006
Total assets	$	24,948	$	22,533	$	59,808	$	49,646	$	(121,444	)	$	35,491
Liabilities and    shareholders’ equity
Current liabilities
Short-term debt	$	—	$	—	$	—	$	13	$	—		$	13
Current portion of    long-term debt	—		552		—		15		—			567
Accounts payable	—		440		380		1,140		—			1,960
Intercompany accounts payable	4		3,751		3,288		1,271		(8,314		)	—
Accrued compensation	—		140		37		284		—			461
Other current liabilities	5		547		400		965		(4		)	1,913
Total current liabilities	9		5,430		4,105		3,688		(8,318		)	4,914
Noncurrent liabilities
Long-term debt	—		7,693		1,266		16		(6		)	8,969
Pension liabilities	—		546		131		788		—			1,465
Other postretirement    benefits liabilities	—		402		171		95		—			668
Deferred income taxes	—		—		1,303		757		(747		)	1,313
Intercompany loans payable	8,148		2,113		18,207		845		(29,313		)	—
Other noncurrent liabilities	—		652		162		485		—			1,299
Total noncurrent liabilities	8,148		11,406		21,240		2,986		(30,066		)	13,714
Shareholders’ equity
Eaton shareholders' equity	16,791		5,697		34,463		42,906		(83,066		)	16,791
Noncontrolling interests	—		—		—		66		6			72
Total equity	16,791		5,697		34,463		42,972		(83,060		)	16,863
Total liabilities and equity	$	24,948	$	22,533	$	59,808	$	49,646	$	(121,444	)	$	35,491

18

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS FOR THE THREE MONTHS ENDED MARCH 31, 2014
	Eaton Corporation plc			Eaton Corporation			Guarantors			Other subsidiaries			Consolidating adjustments			Total
Net cash provided by (used in)    operating activities	$	17		$	(463	)	$	182		$	276		$	—		$	12
Investing activities
Capital expenditures for property,    plant and equipment	—			(25		)	(29		)	(56		)	—			(110		)
Sales of short-term investments - net	—			—			98			333			—			431
Loans to affiliates	—			(7		)	—			(1,056		)	1,063			—
Repayments of loans from affiliates	—			171			—			814			(985		)	—
Proceeds from sale of business	—			—			—			3			—			3
Other - net	—			(13		)	(1		)	(6		)	—			(20		)
Net cash provided by    investing activities	—			126			68			32			78			304
Financing activities
Payments on borrowings	—			(251		)	—			(6		)	—			(257		)
Proceeds from borrowings from    affiliates	—			946			110			7			(1,063		)	—
Payments on borrowings from    affiliates	—			(510		)	(304		)	(171		)	985			—
Other intercompany    financing activities	217			104			(54		)	(267		)	—			—
Cash dividends paid	(229		)	—			—			—			—			(229		)
Exercise of employee stock options	—			23			—			—			—			23
Excess tax benefit from    equity-based compensation	—			20			—			—			—			20
Net cash (used in) provided by    financing activities	(12		)	332			(248		)	(437		)	(78		)	(443		)
Effect of currency on cash	—			—			—			(4		)	—			(4		)
Total increase (decrease) in cash	5			(5		)	2			(133		)	—			(131		)
Cash at the beginning of the period	3			51			10			851			—			915
Cash at the end of the period	$	8		$	46		$	12		$	718		$	—		$	784

19

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS FOR THE THREE MONTHS ENDED MARCH 31, 2013
	Eaton Corporation plc			Eaton Corporation			Guarantors			Other subsidiaries			Consolidating adjustments			Total
Net cash provided by (used in)    operating activities	$	62		$	(301	)	$	778		$	(439	)	$	—		$	100
Investing activities
Capital expenditures for property,    plant and equipment	—			(51		)	(18		)	(53		)	—			(122		)
Sales of short-term investments - net	—			25			31			76			—			132
Loans to affiliates	—			(36		)	—			(438		)	474			—
Repayments of loans from affiliates	—			28			82			303			(413		)	—
Proceeds from sale of business	—			—			—			761			—			761
Other - net	—			4			(3		)	1			—			2
Net cash (used in) provided by    investing activities	—			(30		)	92			650			61			773
Financing activities
Payments on borrowings	—			(676		)	(8		)	(3		)	—			(687		)
Proceeds from borrowings from    affiliates	—			437			1			36			(474		)	—
Payments on borrowings from    affiliates	—			(131		)	(171		)	(111		)	413			—
Other intercompany    financing activities	129			687			(692		)	(124		)	—			—
Cash dividends paid	(194		)	—			—			—			—			(194		)
Exercise of employee stock options	—			56			—			—			—			56
Excess tax benefit from    equity-based compensation	—			16			—			—			—			16
Other - net	—			—			—			(1		)	—			(1		)
Net cash (used in) provided by    financing activities	(65		)	389			(870		)	(203		)	(61		)	(810		)
Effect of currency on cash	—			—			—			(1		)	—			(1		)
Total (decrease) increase in cash	(3		)	58			—			7			—			62
Cash at the beginning of the period	7			54			14			502			—			577
Cash at the end of the period	$	4		$	112		$	14		$	509		$	—		$	639

20

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.

Amounts are in millions of dollars or shares unless indicated otherwise (per share data assume dilution).

COMPANY OVERVIEW

Eaton Corporation plc (Eaton or the Company) is a power management company providing energy-efficient solutions that help its customers effectively manage electrical, hydraulic and mechanical power. With 2013 net sales of $22.0 billion, the Company is a global technology leader in electrical products, systems and services for power quality, distribution and control, power transmission, lighting and wiring products; hydraulics components, systems and services for industrial and mobile equipment; aerospace fuel, hydraulics and pneumatic systems for commercial and military use; and truck and automotive drivetrain and powertrain systems for performance, fuel economy and safety. Eaton has approximately 101,000 employees in over 60 countries and sells products to customers in more than 175 countries.

Summary of Results of Operations

A summary of Eaton’s Net sales, Net income attributable to Eaton ordinary shareholders, and Net income per ordinary share-diluted follows:

	Three months ended March 31
	2014		2013
Net sales	$	5,492	$	5,310
Net income attributable to Eaton ordinary shareholders	439		378
Net income per ordinary share - diluted	$	0.92	$	0.79

RESULTS OF OPERATIONS

The following discussion of Consolidated Financial Results and Business Segment Results of Operations includes certain non-GAAP financial measures. These financial measures include operating earnings, operating earnings per ordinary share, and operating profit before acquisition integration charges for each business segment, as well as corporate expense, each of which excludes amounts that differ from the most directly comparable measure calculated in accordance with generally accepted accounting principles (GAAP). A reconciliation of each of these financial measures to the most directly comparable GAAP measure is included in the table below and in the discussion of the operating results of each business segment. Management believes that these financial measures are useful to investors because they exclude transactions of an unusual nature, allowing investors to more easily compare Eaton’s financial performance period to period. Management uses this information in monitoring and evaluating the on-going performance of Eaton and each business segment. For additional information on acquisition integration charges, see Note 3 to the Condensed Consolidated Financial Statements.

21

Consolidated Financial Results

	Three months ended March 31						Increase
	2014			2013
Net sales	$	5,492		$	5,310		3	%
Gross profit	1,634			1,575			4	%
Percent of net sales	29.8		%	29.7		%
Income before income taxes	453			400			13	%
Net income	$	441		$	380		16	%
Less net income for noncontrolling interests	(2		)	(2		)
Net income attributable to Eaton ordinary shareholders	439			378			16	%
Excluding acquisition integration charges and transaction costs (after-tax)	44			22
Operating earnings	$	483		$	400		21	%
Net income per ordinary share - diluted	$	0.92		$	0.79		16	%
Excluding per share impact of acquisition integration charges    and transaction costs (after-tax)	0.09			0.05
Operating earnings per ordinary share	$	1.01		$	0.84		20	%

Net Sales

Net sales in the first quarter of 2014 increased 3¹/₂% compared to the first quarter of 2013 due to an increase in core sales of 4¹/₂%, partially offset by a decrease of 1% from the impact of currency translation. The increase in core sales in the first quarter of 2014 is primarily due to modest global economic growth in the Company's end markets for all business segments. Eaton continues to anticipate its end markets will grow 3% for all of 2014.

Gross Profit

The gross profit margin remained relatively consistent at 29.8% for the first quarter of 2014 compared to 29.7% for the first quarter of 2013. The gross profit margin in the first quarter of 2014 was positively impacted by higher core sales, as noted above, partially offset by the negative impact of severe winter weather in North America, which necessitated premium freight and overtime and caused project delays.

Income Taxes

The effective income tax rate for the first quarter of 2014 was 3% compared to 5% for the first quarter of 2013. The lower effective tax rate in the first quarter of 2014 was primarily attributable to a more favorable geographic mix of income.

Net Income

Net income attributable to Eaton ordinary shareholders of $439 in the first quarter of 2014 increased 16% compared to Net income attributable to Eaton ordinary shareholders of $378 in the first quarter of 2013. Net income per ordinary share of $0.92 in the first quarter of 2014 increased 16% compared to Net income per ordinary share of $0.79 in the first quarter of 2013. The increase in the first quarter of 2014 was primarily due to the factors impacting gross profit and a lower effective income tax rate, as described above.

22

Business Segment Results of Operations

The following is a discussion of Net sales, operating profit and operating margin by business segment, which includes a discussion of operating profit and operating profit margin before acquisition integration charges. For additional information related to acquisition integration charges, see Note 3 to the Condensed Consolidated Financial Statements.

Electrical Products

	Three months ended March 31						Increase
	2014			2013
Net sales	$	1,726		$	1,660		4	%
Operating profit	250			241			4	%
Operating margin	14.5		%	14.5		%
Acquisition integration charges	$	29		$	3
Before acquisition integration charges
Operating profit	$	279		$	244		14	%
Operating margin	16.2		%	14.7		%

Net sales increased 4% in the first quarter of 2014 compared to the first quarter of 2013 due to an increase in core sales. Core sales growth in the first quarter of 2014 was due to continued strength in the Americas, particularly in North American markets, and improving demand in Europe. Eaton continues to anticipate its Electrical Products markets will grow 3% for all of 2014.

The operating margin before acquisition integration charges increased from 14.7% in the first quarter of 2013 to 16.2% in the first quarter of 2014. The increase in operating margin in the first quarter of 2014 was due to higher sales volumes, as noted above, and incremental synergies related to the acquisition of Cooper Industries plc (Cooper).

Electrical Systems and Services

	Three months ended March 31						Increase (decrease)
	2014			2013
Net sales	$	1,524		$	1,521		—	%
Operating profit	169			210			(20	)%
Operating margin	11.1		%	13.8		%
Acquisition integration charges	$	26		$	5
Before acquisition integration charges
Operating profit	$	195		$	215		(9	)%
Operating margin	12.8		%	14.1		%

Net sales increased slightly to $1,524 in the first quarter of 2014 from $1,521 in the first quarter of 2013 due to an increase in core sales of 2%, offset by a decrease of 2% from the impact of currency translation. Core sales growth in the first quarter of 2014 was primarily due to continued strength in the United States, partially offset by weakness in Canada and Asia Pacific. Eaton continues to anticipate its Electrical Systems and Services markets will grow 3% for all of 2014.

The operating margin before acquisition integration charges decreased from 14.1% in the first quarter of 2013 to 12.8% in the first quarter of 2014. The decrease in operating margin in the first quarter of 2014 was primarily due to the negative impact of the severe winter weather in North America, which necessitated premium freight and overtime and caused project delays, and unfavorable mix of products.

23

Hydraulics

	Three months ended March 31						Increase
	2014			2013
Net sales	$	782		$	756		3	%
Operating profit	108			78			38	%
Operating margin	13.8		%	10.3		%
Acquisition integration charges	$	4		$	12
Before acquisition integration charges
Operating profit	$	112		$	90		24	%
Operating margin	14.3		%	11.9		%

Net sales increased 3% in the first quarter of 2014 compared to the first quarter of 2013 due to an increase in core sales of 6%, partially offset by a decrease of 3% from the impact of currency translation. The increase in core sales in the first quarter of 2014 was primarily due to improved global demand, particularly in the Americas and Europe. Eaton continues to anticipate its Hydraulics markets will grow 3% for all of 2014.

The operating margin before acquisition integration charges increased from 11.9% in the first quarter of 2013 to 14.3% in the first quarter of 2014. The increase in operating margin in the first quarter of 2014 was primarily due to higher sales volumes, as noted above, and a favorable change in the mix of products.

Aerospace

	Three months ended March 31						Increase (decrease)
	2014			2013
Net sales	$	464		$	434		7	%
Operating profit	62			62			—	%
Operating margin	13.4		%	14.3		%

Net sales increased 7% in the first quarter of 2014 compared to the first quarter of 2013 due to an increase in core sales of 5% and an increase of 2% from the impact of currency translation. The increase in core sales in the first quarter of 2014 was primarily due to continued strength in the commercial markets. Eaton continues to anticipate its Aerospace markets will grow 3% for all of 2014.

The operating margin decreased from 14.3% in the first quarter of 2013 to 13.4% in the first quarter of 2014. The decrease in operating margin in the first quarter of 2014 was primarily due to increased spending on new programs.

Vehicle

	Three months ended March 31						Increase
	2014			2013
Net sales	$	996		$	939		6	%
Operating profit	151			132			14	%
Operating margin	15.2		%	14.1		%

Net sales increased 6% in the first quarter of 2014 compared to the first quarter of 2013 due to an increase in core sales of 9%, partially offset by a decrease of 3% from the impact of currency translation. The increase in core sales in the first quarter of 2014 was primarily due to improved global demand, particularly in the North American markets, partially offset by weakness in South American markets. Eaton now anticipates its Vehicle markets will grow 5% for all of 2014.

24

The operating margin increased from 14.1% in the first quarter of 2013 to 15.2% in the first quarter of 2014. The increase in operating margin in the first quarter of 2014 was primarily due to higher sales volumes, as noted above.

Corporate Expense

	Three months ended March 31				Increase (decrease)
	2014		2013
Amortization of intangible assets	$	110	$	107	3	%
Interest expense - net	62		75		(17	)%
Pension and other postretirement    benefits expense	51		38		34	%
Inventory step-up adjustment	—		33		NM
Other corporate expense - net	64		70		(9	)%
Total corporate expense	$	287	$	323	(11	)%

Total Corporate expense decreased 11% from $323 in the first quarter of 2013 to $287 in the first quarter of 2014 primarily due to the absence in 2014 of the inventory step-up adjustment related to purchase price accounting adjustments associated with the acquisition of Cooper and a decrease of 17% in Interest expense - net related to lower debt levels. These decreases were partially offset by a 34% increase in Pension and other postretirement benefits expense primarily due to increased settlement expense related to the expiry of restrictions on lump sum settlements.

For additional information on business acquisitions, see Note 2 to the Condensed Consolidated Financial Statements.

LIQUIDITY, CAPITAL RESOURCES AND CHANGES IN FINANCIAL CONDITION

Financial Condition and Liquidity

Eaton’s objective is to finance its business through operating cash flow and an appropriate mix of equity and long-term and short-term debt. By diversifying its debt maturity structure, Eaton reduces liquidity risk. The Company maintains access to the commercial paper markets through a commercial paper program, which is supported by credit facilities in the aggregate principal amount of $2,000. There were no borrowings outstanding under these revolving credit facilities at March 31, 2014. Over the course of a year, cash, short-term investments and short-term debt may fluctuate in order to manage global liquidity. Eaton believes it has the operating flexibility, cash flow, cash and short-term investment balances, and access to capital markets in excess of the liquidity necessary to meet future operating needs of the business as well as scheduled payments of long-term debt.

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

Sources and Uses of Cash Flow

Operating Cash Flow

Net cash provided by operating activities was $12 in the first three months of 2014, a decrease of $88 compared to $100 in the first three months of 2013. Lower operating cash flow in the first three months of 2014 compared to the first three months of 2013 was primarily due to higher contributions to defined benefits plans.

Investing Cash Flow

Net cash provided by investing activities was $304 in the first three months of 2014, a decrease of $469 compared to $773 in the first three months of 2013. Investing cash flows in 2014 were primarily impacted by a decrease in proceeds from the sale of businesses from $761 in the first three months of 2013 to $3 in the first three months in 2014, primarily related to the sale of Apex Tool Group, LLC in the first three months of 2013, partially offset by increased sales of short-term investments.

Financing Cash Flow

Net cash used in financing activities was $443 in the first three months of 2014, a decrease of $367 compared to $810 in the first three months of 2013. The decrease was primarily due to lower payments on debt borrowings, primarily related to financing the acquisition of Cooper, partially offset by higher cash dividends. For additional information on business acquisitions, see Note 2 to the Condensed Consolidated Financial Statements.

25

FORWARD-LOOKING STATEMENTS

This Form 10-Q Report contains forward-looking statements. These statements may discuss goals, intentions and expectations as to future trends, plans, events, results of operations or financial condition, or state other information relating to Eaton, based on current beliefs of management as well as assumptions made by, and information currently available to, management. Forward-looking statements generally will be accompanied by words such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “forecast,” “guidance,” “intend,” “may,” “possible,” “potential,” “predict,” “project” or other similar words, phrases or expressions. These statements should be used with caution and are subject to various risks and uncertainties, many of which are outside Eaton’s control. The following factors could cause actual results to differ materially from those in the forward-looking statements: unanticipated changes in the markets for the Company’s business segments; unanticipated downturns in business relationships with customers or their purchases from us; the availability of credit to customers and suppliers; competitive pressures on sales and pricing; increases in the cost of material and other production costs, or unexpected costs that cannot be recouped in product pricing; the introduction of competing technologies; unexpected technical or marketing difficulties; unexpected claims, charges, litigation or dispute resolutions; strikes or other labor unrest; the impact of acquisitions and divestitures; unanticipated difficulties integrating acquisitions; new laws and governmental regulations; interest rate changes; tax rate changes or exposure to additional income tax liability; stock market and currency fluctuations; and unanticipated deterioration of economic and financial conditions in the United States and around the world. Eaton does not assume any obligation to update these forward-looking statements.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.

There have been no material changes in exposures to market risk since December 31, 2013.

ITEM 4. CONTROLS AND PROCEDURES.

      Pursuant to Rule 13a-15 under the Securities Exchange Act of 1934 (the Exchange Act), an evaluation was performed, under the supervision and with the participation of Eaton’s management, including Alexander M. Cutler, Principal Executive Officer, and Richard H. Fearon, Principal Financial Officer, of the effectiveness of the design and operation of Eaton’s disclosure controls and procedures. Based on that evaluation, management concluded that Eaton’s disclosure controls and procedures were effective as of March 31, 2014.

Disclosure controls and procedures are designed to ensure that information required to be disclosed in Eaton’s reports filed or submitted under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed in Eaton’s reports filed under the Exchange Act is accumulated and communicated to management, including Eaton’s Principal Executive Officer and Principal Financial Officer, to allow timely decisions regarding required disclosure.

There were no changes in Eaton’s internal control over financial reporting that materially affected, or is reasonably likely to materially affect, Eaton’s internal control over financial reporting.

PART II — OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS.

Information regarding the Company's current legal proceedings is presented in Note 6 of the Notes to the Condensed Consolidated Financial Statements.

ITEM 1A. RISK FACTORS.

“Item 1A. Risk Factors” in Eaton's 2013 Form 10-K includes a discussion of the Company's risk factors. There have been no material changes from the risk factors described in the 2013 Form 10-K.

ITEM 6. EXHIBITS.

Exhibits — See Exhibit Index attached.

26

SIGNATURES

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

			EATON CORPORATION plc
			Registrant
Date:	May 5, 2014	By:	/s/ Richard H. Fearon
			Richard H. Fearon
			Principal Financial Officer
			(On behalf of the registrant and as Principal Financial Officer)

27

Eaton Corporation plc

First Quarter 2014 Report on Form 10-Q

Exhibit Index

3 (i)	Certificate of Incorporation - Incorporated by reference to the Form S-8 filed November 30, 2012
3 (ii)	Amended and restated Memorandum and Articles of Incorporation - Incorporated by reference to the Form 10-Q Report for the three months ended September 30, 2012
4 (a)	Pursuant to Regulation S-K Item 601(b)(4), Eaton agrees to furnish to the SEC, upon request, a copy of the instruments defining the rights of holders of its other long-term debt
10.1	Form of Restricted Share Unit Agreement — Filed in conjunction with this Form 10-Q Report *
12	Ratio of Earnings to Fixed Charges — Filed in conjunction with this Form 10-Q Report *
31.1	Certification of Principal Executive Officer (Pursuant to Rule 13a-14(a)) — Filed in conjunction with this Form 10-Q Report *
31.2	Certification of Principal Financial Officer (Pursuant to Rule 13a-14(a)) — Filed in conjunction with this Form 10-Q Report *
32.1	Certification of Principal Executive Officer (Pursuant to Rule 13a-14(b) as adopted pursuant to Section 906 of the Sarbanes-Oxley Act) — Filed in conjunction with this Form 10-Q Report *
32.2	Certification of Principal Financial Officer (Pursuant to Rule 13a-14(b) as adopted pursuant to Section 906 of the Sarbanes-Oxley Act) — Filed in conjunction with this Form 10-Q Report *
101.INS	XBRL Instance Document *
101.SCH	XBRL Taxonomy Extension Schema Document *
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document *
101.DEF	XBRL Taxonomy Extension Label Definition Document *
101.LAB	XBRL Taxonomy Extension Label Linkbase Document *
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document *

_______________________________

* Submitted electronically herewith.

Attached as Exhibit 101 to this report are the following formatted in XBRL (Extensible Business Reporting Language): (i) Consolidated Statements of Income for the three months ended March 31, 2014 and 2013, (ii) Consolidated Statements of Comprehensive Income for the three months ended March 31, 2014 and 2013, (iii) Condensed Consolidated Balance Sheets at March 31, 2014 and December 31, 2013, (iv) Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2014 and 2013 and (v) Notes to Condensed Consolidated Financial Statements for the three months ended March 31, 2014.

In accordance with Rule 406T of Regulation S-T, the XBRL related information in Exhibit 101 to this Quarterly Report on Form 10-Q shall not be deemed to be “filed” for purposes of Section 18 of the Exchange Act, or otherwise subject to the liability of that section, and shall not be part of any registration statement or other document filed under the Securities Act or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

28

EX-10.1

Exhibit 10.1

2014 RESTRICTED SHARE UNIT GRANT

RESTRICTED SHARE UNIT AGREEMENT UNDER THE AMENDED AND RESTATED 2012 STOCK PLAN

Date of Grant

Name

Number and Type of Shares

Award of Restricted Share Units under the Eaton Corporation plc

Amended and Restated 2012 Stock Plan

The Compensation and Organization Committee (the “Committee”) of the Board of Directors of Eaton Corporation plc (the “Company”) has awarded you a number of restricted share units effective as of (the “Effective Date”) under the terms and conditions of the Company’s Amended and Restated 2012 Stock Plan, as amended (the “Plan”). Information concerning the number of restricted share units awarded to you (the “Award”) is available online through the Eaton Service Center at Fidelity which may be accessed through the Company’s website. You are required to accept the Award online at the Eaton Service Center at Fidelity. You acknowledge and agree as follows:

1.Acceptance. I hereby accept the aforementioned award on the terms and conditions provided in the Plan and this Agreement.

2.Restricted Share Units. I acknowledge that, as of the Effective Date, the restricted share units referred to above (the “Restricted Units”) have been awarded to me, contingent on the continuation of my service with the Company or any of its subsidiaries as provided herein. Each Restricted Unit is equivalent in value to the market value of one (1) ordinary share of nominal value $0.01 per share (“Ordinary Share”) of the Company. The Restricted Units shall be forfeited and immediately cancelled if my employment with the Company or any of its subsidiaries is terminated under any circumstances whatsoever, including without limitation dismissal, resignation, divestiture of operations, disability or retirement. This possibility of forfeiture shall lapse according to the vesting schedule as published on the Company’s records at the Eaton Service Center at Fidelity.

If any Restricted Units are forfeited for any reason, I understand that I will not be entitled to any payment of cash or Ordinary Shares in respect of any Restricted Units so forfeited. Restricted Units that vest shall be settled by the delivery to me of an equal number of Ordinary Shares within ten (10) days following the applicable vesting date.

The Management Compensation Committee of the Company (the “Management Committee”) reserves the right to decide to what extent my leaves of absence for government or military service, illness, temporary disability, or other reasons shall not be deemed to be an interruption of continuous employment.

3.Vesting. Awards subject to this grant will vest as published on the Company’s records at the Eaton Service Center at Fidelity. However, if a regularly scheduled vest day falls on a Saturday, Sunday or other day when the principal stock exchange for the Ordinary Shares is closed for trading, the vest day shall mean the nearest preceding day when that stock exchange is open for trading.

4.Par Value. To the extent that Ordinary Shares issued upon settlement of my award of Restricted Units are newly issued Ordinary Shares, I hereby authorize the Company or any subsidiary to withhold from me via payroll deduction an amount equal to the nominal value, being US $0.01 per share, of such number of newly issued Ordinary Shares, or if such deduction is not made, I will pay or make arrangements with the Company for payment of such amount.

5.Transferability. Until the possibility of forfeiture lapses with respect to any of the Restricted Units, those units or any Ordinary Shares to be delivered with respect to the Restricted Units shall be non-transferable. I agree not to make, or attempt to make, any sale, assignment, transfer or pledge of any of the Restricted Units or Ordinary Shares prior to the date on which the possibility of forfeiture with respect to such shares lapses and the shares vest. Notwithstanding the foregoing provisions of this Paragraph 5, I am permitted to designate one or more primary and contingent beneficiaries to whom the Restricted Units will be transferred in the event of my death. The process for designating such beneficiaries is available through the Eaton Service Center at Fidelity.

6.Reorganizations, etc. In the event of a reorganization, merger, consolidation, reclassification, recapitalization, combination or exchange of shares, stock split, stock dividend, rights offering or other event affecting the Company’s Ordinary Shares, the number of Restricted Units and description or class of shares subject to this Award shall be equitably adjusted by the Management Committee so as to reflect that change.

7.Dividend Equivalents and Voting Rights. I acknowledge that there are no voting ordividend rights associated with the Restricted Units such as those available to holders of Ordinary Shares of the Company.

8.Tax Withholdings. (a) I am responsible for all taxes and social insurance contributions owed by me in connection with the Restricted Units, regardless of any action the Company takes with respect to any Tax Withholding Obligations (as defined below) that arise in connection with the Restricted Units. The Company does not make any representation or undertaking regarding the tax treatment or treatment of any tax withholding in connection with the grant or vesting of the Restricted Units or the subsequent sale of the Ordinary Shares. The Company does not commit and is under no obligation to structure the Restricted Units to reduce or eliminate my tax liability.

(b) Prior to any event in connection with the Restricted Units that the Company determines may result in any domestic or foreign tax withholding obligation, whether national, federal, state or local, including any social insurance contributions (the “Tax Withholding Obligation”), I am required to arrange for the satisfaction of the amount of such Tax Withholding Obligation in a manner acceptable to the Company. My acceptance of this Agreement constitutes my instruction and authorization to the Company to withhold on my behalf the number of Ordinary Shares from those Ordinary Shares issuable to me at the time when the Restricted Units become vested as the Company determines to be sufficient to satisfy the Tax Withholding Obligation. The value of the Ordinary Shares withheld for such purposes shall be based on the fair market value of the Ordinary Shares on the date of vesting. To the extent that the Company or an affiliate withholds in Ordinary Shares, it will do so at the minimum statutory rate. Should the Company or the affiliate withhold an amount in excess of my actual Tax Withholding Obligation, the Company and/or my employer will refund the excess within a reasonable period and without any interest. I agree (i) to pay the Company and/or the affiliate employing me any amount of the Tax Withholding Obligation that is not satisfied by the means described herein or (ii) to the extent permitted by applicable law, for the Company and/or the affiliate employing me to deduct cash from my regular salary payroll to cover such additional amounts. If I fail to comply with my obligations in connection with the Tax

Withholding Obligation as described in this section, the Company may refuse to deliver the Ordinary Shares.

9.No Rights to Continued Employment. I acknowledge that this award of Restricted Units does not in any way entitle me to continued employment with the Company or any of its subsidiaries for the period during which the possibility of forfeiture continues or for any other period, and does not limit or restrict any right the Company or any of its subsidiaries otherwise may have to terminate my employment. Furthermore, the Restricted Units and my participation in the Plan will not be interpreted to form an employment contract or relationship with the Company or any subsidiary or affiliate.

10.Competition by Employee. I expressly acknowledge and agree thatin the event that I voluntarily leave the employment of the Company or a subsidiary and within one year after the vesting of the Restricted Units enter into an activity as employee, agent, officer, director, principal or proprietor which, in the sole judgment of the Management Committee, is in competition with the Company or a subsidiary, the amount of the total fair market value of such vested Restricted Units as of the vesting date shall inure to the benefit of the Company and I agree to promptly pay the same to the Company, unless the Management Committee in its sole discretion shall determine that such action by me is not inimical to the best interests of the Company or its subsidiaries.

11.Change of Control. Notwithstanding anything in this Agreement to the contrary, effective upon a Change of Control of the Company (as defined below), the forfeiture restrictions referred to in Paragraph 2 hereof shall lapse with respect to all of the Restricted Units and the vested Restricted Units shall be settled in accordance with Paragraph 2 hereof. For the purpose of this Agreement, a “Change of Control” shall mean:

A. The acquisition by any individual, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the Exchange Act) (a “Person”) of beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of 25% or more of either (i) the then outstanding Ordinary Shares of the Company (the “Outstanding Ordinary Shares”) or (ii) the combined voting power of the then outstanding voting securities of the Company entitled to vote generally in the election of directors (the “Outstanding Company Voting Securities”); provided, however, that for purposes of this subsection, the following acquisitions shall not constitute a Change of Control: (i) any acquisition directly from the Company, (ii) any acquisition by the Company, or (iii) any acquisition by any employee benefit plan (or related trust) sponsored or maintained by the Company or any corporation controlled by the Company; or

B. Individuals who, as of the date hereof, constitute the Board (the “Incumbent Board”) cease for any reason to constitute at least a majority of the Board; provided, however, that any individual becoming a director subsequent to the date hereof whose election, or nomination for election by the Company's shareholders, was approved by a vote of at least two-thirds of the directors then comprising the Incumbent Board shall be considered as though such individual were a member of the Incumbent Board, but excluding, for this purpose, any such individual whose initial assumption of office occurs as a result of an actual or threatened election contest with respect to the election or removal of directors or other actual or threatened solicitation of proxies or consents by or on behalf of a Person other than the Board; or

C. Consummation by the Company of a reorganization, merger or consolidation or sale or other disposition of all or substantially all of the assets of the Company or the acquisition of assets of another corporation (a “Business Combination”), in each case, unless, following such Business

Combination, (i) all or substantially all of the individuals and entities who were the beneficial owners, respectively, of the Outstanding Ordinary Shares and Outstanding Company Voting Securities immediately prior to such Business Combination beneficially own, directly or indirectly, more than 55% of, respectively, the then outstanding ordinary shares and the combined voting power of the then outstanding voting securities entitled to vote generally in the election of directors, as the case may be, of the corporation resulting from such Business Combination (including, without limitation, a corporation which as a result of such transaction owns the Company or all or substantially all of the Company's assets either directly or through one or more subsidiaries) in substantially the same proportions as their ownership, immediately prior to such Business Combination of the Outstanding Ordinary Shares and Outstanding Company Voting Securities, as the case may be, (ii) no Person (excluding any employee benefit plan (or related trust) of the Company or such corporation resulting from such Business Combination) beneficially owns, directly or indirectly, 25% or more of, respectively, the then outstanding ordinary shares of the corporation resulting from such Business Combination or the combined voting power of the then outstanding voting securities of such corporation except to the extent that such ownership existed prior to the Business Combination and (iii) at least a majority of the members of the board of directors of the corporation resulting from such Business Combination were members of the Incumbent Board at the time of the execution of the initial agreement, or of the action of the Board, providing for such Business Combination; or

D. Approval by the shareholders of the Company of a complete liquidation or dissolution of the Company.

Notwithstanding the foregoing, a “Change of Control” shall not be deemed to have occurred as a result of any transaction or series of transactions which I, or any entity in which I am a partner, officer or more than 50% owner, initiate, if immediately following the transaction or series of transactions that would otherwise constitute a Change of Control, I, either alone or together with other individuals who are executive officers of the Company immediately prior thereto, beneficially own, directly or indirectly, more than 10% of the then outstanding Ordinary Shares of the Company or the ordinary shares of the corporation resulting from the transaction or series of transactions, as applicable, or of the combined voting power of the then outstanding voting securities of the Company or such resulting corporation.

12.Arbitration. In the event of any disputes or difference arising out of or relating to this Agreement, or with regard to performance of any obligation hereunder by either party hereto, both parties hereto shall use their best efforts to settle such dispute or difference in an amicable manner. Should such dispute or difference not be resolved or amicably settled between the parties hereto, such dispute or difference shall be finally settled by arbitration without recourse to the Courts. Arbitration shall be conducted in accordance with the Rules of Arbitration of the American Arbitration Association by three (3) arbitrators, one of whom shall be selected by the Company, one by me and a third by the two arbitrators so selected. In the event that the arbitrators selected by the Company and myself are unable to reach an agreement as to the third arbitrator, the third arbitrator shall be selected by the American Arbitration Association. Arbitration should be held in Cleveland, Ohio. In any dispute referred to arbitration, each party shall be given the opportunity to present to the arbitrators its evidence, witnesses and argument, and the right to be represented by counsel of its choice when the other party presents its evidence, witnesses and argument.

The decision and award of the arbitrators shall be in writing and shall be final and binding on the parties hereto. Judgment upon the award rendered may be entered in any Court having jurisdiction thereof or application may be made to such Court for a judicial acceptance of the award and an Order of

Enforcement, as the case may be. The expenses of arbitration shall be borne in accordance with the determination of the arbitrators. Pending a decision by the arbitrators with respect to the dispute or difference undergoing arbitration, all other obligations of the parties hereto shall continue as stipulated herein and all monies not directly involved in such dispute or difference shall be paid when due.

13.Nature of Grant. In accepting the grant, I acknowledge that:

(a)the Plan is established voluntarily by the Company, it is discretionary in nature and it may be modified, amended, suspended or terminated by the Company at any time;

(b)the grant of the Restricted Units is voluntary and occasional and does not create any contractual or other right to receive future grants of restricted units, or benefits in lieu of restricted units, even if restricted units have been granted repeatedly in the past and all decisions with respect to future restricted unit grants, if any, will be at the sole discretion of the Company;

(c)I am voluntarily participating in the Plan;

(d)the Restricted Units and the Ordinary Shares subject to the Restricted Units are an extraordinary item that does not constitute compensation of any kind for services of any kind rendered to the Company or my employer, and which is outside the scope of my employment contract, if any;

(e)the Restricted Units and the Ordinary Shares subject to the Restricted Units are not intended to replace any pension rights or compensation;

(f)the Restricted Units and the Ordinary Shares subject to the Restricted Units are not part of normal or expected compensation or salary for any purposes, including, but not limited to, calculating any severance, resignation, termination, redundancy, dismissal, end of service payments, bonuses, long-service awards, pension or retirement or welfare benefits or similar payments and in no event should be considered as compensation for, or relating in any way to, past services for the Company, my employer, or any subsidiary or affiliate;

(g)the future value of the underlying Ordinary Shares is unknown and cannot be predicted with certainty;

(h)in consideration of the grant of the Restricted Units, no claim or entitlement to compensation or damages shall arise from forfeiture of the Restricted Units resulting from termination of my employment with the Company or my employer (for any reason whatsoever and whether or not in breach of local labor laws) and I irrevocably release the Company and my employer from any such claim that may arise; if, notwithstanding the foregoing, any such claim is found by a court of competent jurisdiction to have arisen, I shall be deemed irrevocably to have waive any entitlement to pursue such claim; and

(i)in the event of termination of my employment (whether or not in breach of local labor laws), my right to vest in the Restricted Units under the Plan, if any, will terminate effective as of the date that I am no longer actively providing services and will not be extended by any notice period mandated under local law (e.g., active service would not include a period of “garden leave” or similar period pursuant to local law); the Management Committee shall have the exclusive discretion to determine when I am no longer actively providing services for purposes of the Restricted Units.

14.Data Privacy and Data Protection. (a) I hereby explicitly and unambiguously consent to the collection, use, processing and transfer, in electronic or other form, of my personal data as described

in this Agreement and any other award materials by and among, as applicable, my employer, the Company, and its subsidiaries and affiliates for the exclusive purpose of implementing, administering and managing my participation in the Plan.

(b)I understand that the Company and my employer may hold certain personal data about me, including but not limited to, my name, home address and telephone number, date of birth, social insurance number or other identification number, salary, nationality, job title, any Ordinary Shares or directorships held in the Company, details of all awards or any other entitlement to Ordinary Shares granted, canceled, exercised, vested, unvested or outstanding in my favor, for the exclusive purpose of implementing, administering and managing the Plan (“Data”).

(c)I understand that Data will be transferred to any third parties assisting the Company with the implementation, administration and management of the Plan, including Fidelity Stock Plan Services,and I consent to such transfer. I understand that the recipients of the Data may be located in the United States or elsewhere, and that the recipients’ country (e.g., the United States) may have different data privacy laws and protections than my country, and I consent to such circumstances. I understand that I may request a list with the names and addresses of any potential recipients of the Data by contacting my local human resources representative. I authorize the Company and any other possible recipients which may assist the Company (presently or in the future) with implementing, administering and managing the Plan to receive, possess, use, retain and transfer the Data, in electronic or other form, for the sole purpose of implementing, administering and managing my participation in the Plan. I understand that Data will be held only as long as is necessary to implement, administer and manage my participation in the Plan. I understand that I may, at any time, view Data, request additional information about the storage and processing of Data, require any necessary amendments to Data or refuse or withdraw the consents herein, in any case without cost, by contacting in writing my local human resources representative. I understand, however, that refusing or withdrawing my consent may affect my ability to participate in the Plan. For more information on the consequences of my refusal to consent or withdrawal of consent, I understand that I may contact my local human resources representative.

15.Non-U.S. Addendum. Notwithstanding any provisions in this Agreement, the Restricted Units shall be subject to the special terms and conditions set forth in the addendum attached hereto as Appendix A to this Agreement (the “Non-U.S. Addendum”) for my country. Moreover, if I relocate to one of the countries included in the Non-U.S. Addendum, the special terms and conditions for such country will apply to me, to the extent the Company determines that the application of such terms and conditions is necessary or advisable in order to comply with local law or facilitate the administration of the Plan. The Non-U.S. Addendum constitutes part of this Agreement.

16.Miscellaneous. Unless otherwise expressly provided herein, terms defined in the Plan shall have the same meanings when used in this Agreement. The Management Committee shall have the right at any time in its sole discretion to amend, alter, suspend, discontinue or terminate any Restricted Units without my consent. Also, the Restricted Units shall be null and void to the extent the grant of Restricted Units or the lapse of restrictions thereon is prohibited under the laws of the country of my residence or employment. The Management Committee may, in circumstances determined in its sole discretion, provide for the lapse of the above restrictions at earlier dates. The use of the masculine gender shall be deemed to include the feminine gender. In the event of a conflict between this Agreement and the Plan, the Plan shall control. This Agreement represents the entire understanding between us on the subject hereof and shall be governed in accordance with Ohio law, without giving effect to conflict of law principles.

Appendix A

Non-U.S. Addendum

EX-12

Eaton Corporation plc

First Quarter 2014 Report on Form 10-Q

Item 6

Exhibit 12

Ratio of Earnings to Fixed Charges

	Three months ended March 31			Year ended December 31
(Millions of dollars)	2014			2013		2012			2011			2010			2009
Income from continuing operations before income taxes    and noncontrolling interests in consolidated subsidiaries	$	453		$	1,884	$	1,251		$	1,553		$	1,036		$	303
Adjustments
(Income) loss of equity investees	(2		)	2		(2		)	(2		)	(14		)	(6		)
Distributed income of equity investees	—			77		19			3			15			9
Interest expensed	67			290		165			154			162			170
Amortization of debt issue costs	2			10		74			4			4			5
Estimated portion of rent expense representing interest	21			80		66			65			57			59
Amortization of capitalized interest	3			13		12			10			10			13
Adjusted income from continuing operations before    income taxes	$	544		$	2,356	$	1,585		$	1,787		$	1,270		$	553
Fixed charges
Interest expensed	$	67		$	290	$	165		$	154		$	162		$	170
Interest capitalized	3			11		23			18			8			7
Amortization of debt issue costs	2			10		74			4			4			5
Estimated portion of rent expense representing interest	21			80		66			65			57			59
Total fixed charges	$	93		$	391	$	328		$	241		$	231		$	241
Ratio of earnings to fixed charges	5.85			6.03		4.83			7.41			5.50			2.29

EX-31.1

Eaton Corporation plc

First Quarter 2014 Report on Form 10-Q

Item 6

Exhibit 31.1

Certification

I, Alexander M. Cutler, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Eaton Corporation plc;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:	May 5, 2014	/s/ Alexander M. Cutler
		Alexander M. Cutler
		Principal Executive Officer

EX-31.2

Eaton Corporation plc

First Quarter 2014 Report on Form 10-Q

Item 6

Exhibit 31.2

Certification

I, Richard H. Fearon, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Eaton Corporation plc;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:	May 5, 2014	/s/ Richard H. Fearon
		Richard H. Fearon
		Principal Financial Officer

EX-32.1

Eaton Corporation plc

First Quarter 2014 Report on Form 10-Q

Item 6

Exhibit 32.1

Certification

This written statement is submitted in accordance with Section 1350 of Chapter 63 of Title 18 of the United States Code adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. It accompanies Eaton Corporation plc’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2014 (“10-Q Report”).

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

Date:	May 5, 2014	/s/ Alexander M. Cutler
		Alexander M. Cutler
		Principal Executive Officer

EX-32.2

Eaton Corporation plc

First Quarter 2014 Report on Form 10-Q

Item 6

Exhibit 32.2

Certification

This written statement is submitted in accordance with Section 1350 of Chapter 63 of Title 18 of the United States Code adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. It accompanies Eaton Corporation plc’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2014 (“10-Q Report”).

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

Date:	May 5, 2014	/s/ Richard H. Fearon
		Richard H. Fearon
		Principal Financial Officer

XML

Reclassifications Out of Accumulated Other Comprehensive Loss (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2014		Mar. 31, 2013
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Consolidated Statements of Income classification for currency exchange contracts reclassifications out of Accumulated other comprehensive income (loss) - Cost of products sold	$ 3,858		$ 3,735
Consolidated Statements of Income classification for reclassifications out of AOCI, tax impact - Income tax (benefit) expense	(12)		(20)
Consolidated Statements of Income classification for total AOCI reclassifications for the period, net of tax - Net income attributable to Eaton ordinary shareholders	439		378
Reclassification out of Accumulated other comprehensive loss [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Consolidated Statements of Income classification for total AOCI reclassifications for the period, net of tax - Net income attributable to Eaton ordinary shareholders	(40)
Reclassification out of Accumulated other comprehensive loss [Member] | Amortization of defined benefit pension items [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Actuarial loss - Other comprehensive (income) loss, reclassification adjustment from AOCI, pension and other postretirement benefit plans, before tax, total	(66)	[1]
Consolidated Statements of Income classification for reclassifications out of AOCI, tax impact - Income tax (benefit) expense	25
Consolidated Statements of Income classification for total AOCI reclassifications for the period, net of tax - Net income attributable to Eaton ordinary shareholders	(41)
Reclassification out of Accumulated other comprehensive loss [Member] | Loss on cash flow hedges [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Consolidated Statements of Income classification for reclassifications out of AOCI, tax impact - Income tax (benefit) expense	(1)
Consolidated Statements of Income classification for total AOCI reclassifications for the period, net of tax - Net income attributable to Eaton ordinary shareholders	1
Reclassification out of Accumulated other comprehensive loss [Member] | Loss on cash flow hedges [Member] | Currency exchange contracts [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Consolidated Statements of Income classification for currency exchange contracts reclassifications out of Accumulated other comprehensive income (loss) - Cost of products sold	$ 2

[1] These components of Accumulated other comprehensive loss are included in the computation of net periodic pension cost. See Note 5 for additional information about defined benefit pension items.

XML

Condensed Consolidating Financial Information Condensed Income Statement (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Condensed Income Statements, Captions [Line Items]
Net sales	$ 5,492	$ 5,310
Cost of products sold	3,858	3,735
Selling and administrative expense	962	958
Research and development expense	162	152
Interest expense (income) - net	62	75
Other expense (income) - net	(5)	(10)
Equity in (earnings) loss of subsidiaries, net of tax	0	0
Intercompany expense (income) - net	0	0
Income before income taxes	453	400
Income tax (benefit) expense	12	20
Net income	441	380
Less net income for noncontrolling interests	(2)	(2)
Net income attributable to Eaton ordinary shareholders	439	378
Other comprehensive income (loss)	3	(235)
Total comprehensive income attributable to Eaton ordinary shareholders	442	143
Eaton Corporation plc [Member]
Condensed Income Statements, Captions [Line Items]
Net sales	0	0
Cost of products sold	0	0
Selling and administrative expense	2	2
Research and development expense	0	0
Interest expense (income) - net	0	0
Other expense (income) - net	0	0
Equity in (earnings) loss of subsidiaries, net of tax	(469)	(444)
Intercompany expense (income) - net	28	64
Income before income taxes	439	378
Income tax (benefit) expense	0	0
Net income	439	378
Less net income for noncontrolling interests	0	0
Net income attributable to Eaton ordinary shareholders	439	378
Other comprehensive income (loss)	3	(235)
Total comprehensive income attributable to Eaton ordinary shareholders	442	143
Eaton Corporation [Member]
Condensed Income Statements, Captions [Line Items]
Net sales	1,667	1,588
Cost of products sold	1,342	1,239
Selling and administrative expense	361	341
Research and development expense	60	58
Interest expense (income) - net	59	74
Other expense (income) - net	5	(5)
Equity in (earnings) loss of subsidiaries, net of tax	(207)	(309)
Intercompany expense (income) - net	(71)	(102)
Income before income taxes	118	292
Income tax (benefit) expense	(25)	(2)
Net income	143	294
Less net income for noncontrolling interests	0	0
Net income attributable to Eaton ordinary shareholders	143	294
Other comprehensive income (loss)	28	(22)
Total comprehensive income attributable to Eaton ordinary shareholders	171	272
Guarantors [Member]
Condensed Income Statements, Captions [Line Items]
Net sales	1,641	1,573
Cost of products sold	1,218	1,195
Selling and administrative expense	200	198
Research and development expense	50	47
Interest expense (income) - net	7	7
Other expense (income) - net	3	8
Equity in (earnings) loss of subsidiaries, net of tax	(485)	(567)
Intercompany expense (income) - net	120	176
Income before income taxes	528	509
Income tax (benefit) expense	(7)	(37)
Net income	535	546
Less net income for noncontrolling interests	0	0
Net income attributable to Eaton ordinary shareholders	535	546
Other comprehensive income (loss)	23	(233)
Total comprehensive income attributable to Eaton ordinary shareholders	558	313
Other subsidiaries [Member]
Condensed Income Statements, Captions [Line Items]
Net sales	3,291	3,273
Cost of products sold	2,392	2,425
Selling and administrative expense	399	417
Research and development expense	52	47
Interest expense (income) - net	(6)	(6)
Other expense (income) - net	(13)	(13)
Equity in (earnings) loss of subsidiaries, net of tax	(201)	(166)
Intercompany expense (income) - net	(77)	(138)
Income before income taxes	745	707
Income tax (benefit) expense	49	59
Net income	696	648
Less net income for noncontrolling interests	(2)	(2)
Net income attributable to Eaton ordinary shareholders	694	646
Other comprehensive income (loss)	(15)	(391)
Total comprehensive income attributable to Eaton ordinary shareholders	679	255
Consolidating adjustments [Member]
Condensed Income Statements, Captions [Line Items]
Net sales	(1,107)	(1,124)
Cost of products sold	(1,094)	(1,124)
Selling and administrative expense	0	0
Research and development expense	0	0
Interest expense (income) - net	2	0
Other expense (income) - net	0	0
Equity in (earnings) loss of subsidiaries, net of tax	1,362	1,486
Intercompany expense (income) - net	0	0
Income before income taxes	(1,377)	(1,486)
Income tax (benefit) expense	(5)	0
Net income	(1,372)	(1,486)
Less net income for noncontrolling interests	0	0
Net income attributable to Eaton ordinary shareholders	(1,372)	(1,486)
Other comprehensive income (loss)	(36)	646
Total comprehensive income attributable to Eaton ordinary shareholders	$ (1,408)	$ (840)

XML

Business Segment Information (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Business Segment Information
Net sales	$ 5,492	$ 5,310
Interest expense - net	62	75
Pension and other postretirement benefits expense	(99)	(87)
Other corporate expense - net	(5)	(10)
Income before income taxes	453	400
Income tax expense	12	20
Net income	441	380
Less net income for noncontrolling interests	(2)	(2)
Net income attributable to Eaton ordinary shareholders	439	378
Electrical Products [Member]
Business Segment Information
Net sales	1,726	1,660
Segment operating profit	250	241
Electrical Systems and Services [Member]
Business Segment Information
Net sales	1,524	1,521
Segment operating profit	169	210
Hydraulics [Member]
Business Segment Information
Net sales	782	756
Segment operating profit	108	78
Aerospace [Member]
Business Segment Information
Net sales	464	434
Segment operating profit	62	62
Vehicle [Member]
Business Segment Information
Net sales	996	939
Segment operating profit	151	132
Corporate
Business Segment Information
Amortization of intangible assets	(110)	(107)
Interest expense - net	(62)	(75)
Pension and other postretirement benefits expense	(51)	(38)
Inventory step-up adjustment	0	(33)
Other corporate expense - net	(64)	(70)
Total business segments
Business Segment Information
Segment operating profit	$ 740	$ 723

XML

Goodwill (Details) (USD $) In Millions, unless otherwise specified	Mar. 31, 2014	Dec. 31, 2013
Goodwill [Line Items]
Goodwill	$ 14,450	$ 14,495
Electrical Products [Member]
Goodwill [Line Items]
Goodwill	7,153	7,189
Electrical Systems and Services [Member]
Goodwill [Line Items]
Goodwill	4,508	4,517
Hydraulics [Member]
Goodwill [Line Items]
Goodwill	1,384	1,385
Aerospace [Member]
Goodwill [Line Items]
Goodwill	1,048	1,048
Vehicle [Member]
Goodwill [Line Items]
Goodwill	$ 357	$ 356

XML

Derivative Financial Instruments and Hedging Activities (Tables)

3 Months Ended

Mar. 31, 2014

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative financial instruments recognized in the Consolidated Balance Sheet

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

	Notional amount		Other  current assets		Other long-term assets		Other current liabilities		Other long-term liabilities		Type of hedge	Term
March 31, 2014
Derivatives designated as hedges
Fixed-to-floating interest rate swaps	$	3,290	$	—	$	39	$	—	$	49	Fair value	3 to 20 years
Floating-to-fixed interest rate swaps	300		—		—		—		—		Cash flow	3 months
Currency exchange contracts	495		12		—		3		—		Cash flow	12 to 36 months
Commodity contracts	1		—		—		—		—		Cash flow	1 to 12 months
Total			$	12	$	39	$	3	$	49
Derivatives not designated as hedges
Currency exchange contracts	$	4,160	$	23			$	21				1 to 12 months

	Notional amount		Other  current assets		Other long-term assets		Other current liabilities		Other long-term liabilities		Type of hedge	Term
December 31, 2013
Derivatives designated as hedges
Fixed-to-floating interest rate swaps	$	3,090	$	1	$	36	$	—	$	76	Fair value	3 months to 20 years
Floating-to-fixed interest rate swaps	300		—		—		1		—		Cash flow	6 months
Currency exchange contracts	393		12		—		3		—		Cash flow	12 to 36 months
Commodity contracts	1		—		—		—		—		Cash flow	1 to 12 months
Total			$	13	$	36	$	4	$	76
Derivatives not designated as hedges
Currency exchange contracts	$	4,277	$	22			$	26				1 to 12 months

Amounts recognized in accumulated other comprehensive income (loss)

Amounts recognized in Accumulated other comprehensive income (loss) follow:

	Three months ended March 31
	2014				2013
	Gain (loss) recognized in Accumulated other comprehensive income (loss)		Gain (loss) reclassified from Accumulated other comprehensive income (loss)		Gain (loss) recognized in Accumulated other comprehensive income (loss)			Gain (loss) reclassified from Accumulated other comprehensive income (loss)
Derivatives designated as cash flow hedges
Currency exchange contracts	$	2	$	2	$	(9	)	$	1

Amounts recognized in net income

Amounts recognized in net income follow:

	Three months ended March 31
	2014			2013
Derivatives designated as fair value hedges
Fixed-to-floating interest rate swaps	$	29		$	(8	)
Related long-term debt converted to floating interest rates by interest rate swaps	(29		)	8
	$	—		$	—

XML

Condensed Consolidating Financial Information Condensed Statements of Cash Flows (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Condensed Cash Flow Statements, Captions [Line Items]
Net cash provided by (used in) operating activities	$ 12	$ 100
Capital expenditures for property, plant and equipment	(110)	(122)
Sales of short-term investments - net	431	132
Loans to affiliates	0	0
Repayments of loans from affiliates	0	0
Proceeds from sale of business	3	761
Other - net	(20)	2
Net cash provided by (used in) investing activities	304	773
Payments on borrowings	(257)	(687)
Proceeds from borrowings from affiliates	0	0
Payments on borrowings from affiliates	0	0
Other intercompany financing activities	0	0
Cash dividends paid	(229)	(194)
Exercise of employee stock options	23	56
Excess tax benefit from equity-based compensation	20	16
Other - net	0	(1)
Net cash (used in) provided by financing activities	(443)	(810)
Effect of currency on cash	(4)	(1)
Total increase (decrease) in cash	(131)	62
Cash at the beginning of the period	915	577
Cash at the end of the period	784	639
Eaton Corporation plc [Member]
Condensed Cash Flow Statements, Captions [Line Items]
Net cash provided by (used in) operating activities	17	62
Capital expenditures for property, plant and equipment	0	0
Sales of short-term investments - net	0	0
Loans to affiliates	0	0
Repayments of loans from affiliates	0	0
Proceeds from sale of business	0	0
Other - net	0	0
Net cash provided by (used in) investing activities	0	0
Payments on borrowings	0	0
Proceeds from borrowings from affiliates	0	0
Payments on borrowings from affiliates	0	0
Other intercompany financing activities	217	129
Cash dividends paid	(229)	(194)
Exercise of employee stock options	0	0
Excess tax benefit from equity-based compensation	0	0
Other - net		0
Net cash (used in) provided by financing activities	(12)	(65)
Effect of currency on cash	0	0
Total increase (decrease) in cash	5	(3)
Cash at the beginning of the period	3	7
Cash at the end of the period	8	4
Eaton Corporation [Member]
Condensed Cash Flow Statements, Captions [Line Items]
Net cash provided by (used in) operating activities	(463)	(301)
Capital expenditures for property, plant and equipment	(25)	(51)
Sales of short-term investments - net	0	25
Loans to affiliates	(7)	(36)
Repayments of loans from affiliates	171	28
Proceeds from sale of business	0	0
Other - net	(13)	4
Net cash provided by (used in) investing activities	126	(30)
Payments on borrowings	(251)	(676)
Proceeds from borrowings from affiliates	946	437
Payments on borrowings from affiliates	(510)	(131)
Other intercompany financing activities	104	687
Cash dividends paid	0	0
Exercise of employee stock options	23	56
Excess tax benefit from equity-based compensation	20	16
Other - net		0
Net cash (used in) provided by financing activities	332	389
Effect of currency on cash	0	0
Total increase (decrease) in cash	(5)	58
Cash at the beginning of the period	51	54
Cash at the end of the period	46	112
Guarantors [Member]
Condensed Cash Flow Statements, Captions [Line Items]
Net cash provided by (used in) operating activities	182	778
Capital expenditures for property, plant and equipment	(29)	(18)
Sales of short-term investments - net	98	31
Loans to affiliates	0	0
Repayments of loans from affiliates	0	82
Proceeds from sale of business	0	0
Other - net	(1)	(3)
Net cash provided by (used in) investing activities	68	92
Payments on borrowings	0	(8)
Proceeds from borrowings from affiliates	110	1
Payments on borrowings from affiliates	(304)	(171)
Other intercompany financing activities	(54)	(692)
Cash dividends paid	0	0
Exercise of employee stock options	0	0
Excess tax benefit from equity-based compensation	0	0
Other - net		0
Net cash (used in) provided by financing activities	(248)	(870)
Effect of currency on cash	0	0
Total increase (decrease) in cash	2	0
Cash at the beginning of the period	10	14
Cash at the end of the period	12	14
Other subsidiaries [Member]
Condensed Cash Flow Statements, Captions [Line Items]
Net cash provided by (used in) operating activities	276	(439)
Capital expenditures for property, plant and equipment	(56)	(53)
Sales of short-term investments - net	333	76
Loans to affiliates	(1,056)	(438)
Repayments of loans from affiliates	814	303
Proceeds from sale of business	3	761
Other - net	(6)	1
Net cash provided by (used in) investing activities	32	650
Payments on borrowings	(6)	(3)
Proceeds from borrowings from affiliates	7	36
Payments on borrowings from affiliates	(171)	(111)
Other intercompany financing activities	(267)	(124)
Cash dividends paid	0	0
Exercise of employee stock options	0	0
Excess tax benefit from equity-based compensation	0	0
Other - net		(1)
Net cash (used in) provided by financing activities	(437)	(203)
Effect of currency on cash	(4)	(1)
Total increase (decrease) in cash	(133)	7
Cash at the beginning of the period	851	502
Cash at the end of the period	718	509
Consolidating adjustments [Member]
Condensed Cash Flow Statements, Captions [Line Items]
Net cash provided by (used in) operating activities	0	0
Capital expenditures for property, plant and equipment	0	0
Sales of short-term investments - net	0	0
Loans to affiliates	1,063	474
Repayments of loans from affiliates	(985)	(413)
Proceeds from sale of business	0	0
Other - net	0	0
Net cash provided by (used in) investing activities	78	61
Payments on borrowings	0	0
Proceeds from borrowings from affiliates	(1,063)	(474)
Payments on borrowings from affiliates	985	413
Other intercompany financing activities	0	0
Cash dividends paid	0	0
Exercise of employee stock options	0	0
Excess tax benefit from equity-based compensation	0	0
Other - net		0
Net cash (used in) provided by financing activities	(78)	(61)
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

XML

Fair Value Measurements Other Fair Value Measurements (Details) (USD $) In Millions, unless otherwise specified	Mar. 31, 2014	Dec. 31, 2013
Fair Value Disclosures [Abstract]
Carrying value of long-term debt and current portion of long-term debt	$ 9,307	$ 9,536
Fair value of long-term debt and current portion of long-term debt	$ 9,683	$ 9,665

XML

Equity Changes in Shareholders's Equity (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Changes in Shareholders' equity
Balance at December 31, 2013	$ 16,863
Net income	441	380
Other comprehensive income (loss)	3	(235)
Cash dividends paid and accrued	(234)
Issuance of shares under equity-based compensation plans - net	38
Balance at March 31, 2014	17,111
Eaton shareholders' equity [Member]
Changes in Shareholders' equity
Balance at December 31, 2013	16,791
Net income	439
Other comprehensive income (loss)	3
Cash dividends paid and accrued	(234)
Issuance of shares under equity-based compensation plans - net	38
Balance at March 31, 2014	17,037
Noncontrolling interests [Member]
Changes in Shareholders' equity
Balance at December 31, 2013	72
Net income	2
Other comprehensive income (loss)	0
Cash dividends paid and accrued	0
Issuance of shares under equity-based compensation plans - net	0
Balance at March 31, 2014	$ 74

XML

Condensed Consolidating Financial Information (Details) (USD $) In Millions, unless otherwise specified	Nov. 20, 2012
Condensed Consolidating Financial Information [Abstract]
Eaton Corp. and certain other subsidiaries guarantee of Senior Debt	100.00%
Issuance of senior notes	$ 4,900

XML

Goodwill

3 Months Ended

Mar. 31, 2014

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL

GOODWILL

A summary of goodwill follows:

	March 31, 2014		December 31, 2013
Electrical Products	$	7,153	$	7,189
Electrical Systems and Services	4,508		4,517
Hydraulics	1,384		1,385
Aerospace	1,048		1,048
Vehicle	357		356
Total goodwill	$	14,450	$	14,495

The decrease in goodwill in 2014 was due to currency translation.

XML

Derivative Financial Instruments and Hedging Activities (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2014	Dec. 31, 2013
Derivatives, Fair Value [Line Items]
Debt denominated in foreign currency designated as non-derivative net investment hedging instrument	$ 97	$ 95
Percentage of intercompany balance sheet exposure	100.00%
Other current assets [Member]
Derivatives designated as hedges
Derivative asset designated as hedging instrument	12	13
Other long-term assets [Member]
Derivatives designated as hedges
Derivative asset designated as hedging instrument	39	36
Other current liabilities [Member]
Derivatives designated as hedges
Derivative liability designated as hedging instrument	3	4
Other long-term liabilities [Member]
Derivatives designated as hedges
Derivative liability designated as hedging instrument	49	76
Currency exchange contracts [Member]
Derivatives not designated as hedges
Period of derivatives not designated as hedges	1 to 12 months	1 to 12 months
Currency exchange contracts [Member] | Other current assets [Member]
Derivatives not designated as hedges
Derivative instruments not designated as hedging instruments, asset, at fair value	23	22
Currency exchange contracts [Member] | Other current liabilities [Member]
Derivatives not designated as hedges
Derivative instruments not designated as hedging instruments, liability, at fair value	21	26
Fair Value Hedging [Member] | Fixed-to-floating interest rate swaps [Member]
Derivatives designated as hedges
Period of derivatives designated as hedges	3 to 20 years	3 months to 20 years
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
Fair Value Hedging [Member] | Fixed-to-floating interest rate swaps [Member] | Other long-term assets [Member]
Derivatives designated as hedges
Derivative asset designated as hedging instrument	39	36
Fair Value Hedging [Member] | Fixed-to-floating interest rate swaps [Member] | Other current liabilities [Member]
Derivatives designated as hedges
Derivative liability designated as hedging instrument	0	0
Fair Value Hedging [Member] | Fixed-to-floating interest rate swaps [Member] | Other long-term liabilities [Member]
Derivatives designated as hedges
Derivative liability designated as hedging instrument	49	76
Cash Flow Hedging [Member] | Floating-to-fixed interest rate swaps [Member]
Derivatives designated as hedges
Period of derivatives designated as hedges	3 months	6 months
Cash Flow Hedging [Member] | Floating-to-fixed interest rate swaps [Member] | Other current assets [Member]
Derivatives designated as hedges
Derivative asset designated as hedging instrument	0	0
Cash Flow Hedging [Member] | Floating-to-fixed interest rate swaps [Member] | Other long-term assets [Member]
Derivatives designated as hedges
Derivative asset designated as hedging instrument	0	0
Cash Flow Hedging [Member] | Floating-to-fixed interest rate swaps [Member] | Other current liabilities [Member]
Derivatives designated as hedges
Derivative liability designated as hedging instrument	0	1
Cash Flow Hedging [Member] | Floating-to-fixed interest rate swaps [Member] | Other long-term liabilities [Member]
Derivatives designated as hedges
Derivative liability designated as hedging instrument	0	0
Cash Flow Hedging [Member] | Currency exchange contracts [Member]
Derivatives designated as hedges
Period of derivatives designated as hedges	12 to 36 months	12 to 36 months
Cash Flow Hedging [Member] | Currency exchange contracts [Member] | Other current assets [Member]
Derivatives designated as hedges
Derivative asset designated as hedging instrument	12	12
Cash Flow Hedging [Member] | Currency exchange contracts [Member] | Other long-term assets [Member]
Derivatives designated as hedges
Derivative asset designated as hedging instrument	0	0
Cash Flow Hedging [Member] | Currency exchange contracts [Member] | Other current liabilities [Member]
Derivatives designated as hedges
Derivative liability designated as hedging instrument	3	3
Cash Flow Hedging [Member] | Currency exchange contracts [Member] | Other long-term liabilities [Member]
Derivatives designated as hedges
Derivative liability designated as hedging instrument	0	0
Cash Flow Hedging [Member] | Commodity contracts [Member]
Derivatives designated as hedges
Period of derivatives designated as hedges	1 to 12 months	1 to 12 months
Cash Flow Hedging [Member] | Commodity contracts [Member] | Other current assets [Member]
Derivatives designated as hedges
Derivative asset designated as hedging instrument	0	0
Cash Flow Hedging [Member] | Commodity contracts [Member] | Other long-term assets [Member]
Derivatives designated as hedges
Derivative asset designated as hedging instrument	0	0
Cash Flow Hedging [Member] | Commodity contracts [Member] | Other current liabilities [Member]
Derivatives designated as hedges
Derivative liability designated as hedging instrument	0	0
Cash Flow Hedging [Member] | Commodity contracts [Member] | Other long-term liabilities [Member]
Derivatives designated as hedges
Derivative liability designated as hedging instrument	0	0
Designated as Hedging Instrument [Member] | Fair Value Hedging [Member] | Fixed-to-floating interest rate swaps [Member]
Derivatives not designated as hedges
Notional amount	3,290	3,090
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Floating-to-fixed interest rate swaps [Member]
Derivatives not designated as hedges
Notional amount	300	300
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Currency exchange contracts [Member]
Derivatives not designated as hedges
Notional amount	495	393
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Commodity contracts [Member]
Derivatives not designated as hedges
Notional amount	1	1
Not Designated as Hedging Instrument [Member] | Currency exchange contracts [Member]
Derivatives not designated as hedges
Notional amount	$ 4,160	$ 4,277

XML

Acquisitions of Businesses (Details) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2011 Cooper Industries plc [Member] Electrical Systems and Services; Electrical Products [Member]	Sep. 30, 2012 Rolec Comercial e Industrial S.A. [Member] Electrical Systems and Services [Member]	Dec. 31, 2011 Jeil Hydraulics Co. Ltd. [Member] Hydraulics [Member]	Dec. 31, 2011 Polimer Kaucuk Sanayi ve Pazarlama A.S. [Member] Hydraulics [Member]	Dec. 31, 2011 Gycom Electrical Low-Voltage Power Distribution, Control and Automation [Member] Electrical Systems and Services [Member]
Business Acquisition [Line Items]
Business acquisition, revenue reported by acquired entity for last annual period	$ 5,409	$ 85	$ 189	$ 335	$ 24

XML

Condensed Consolidating Financial Information (Tables)

3 Months Ended

Mar. 31, 2014

Condensed Financial Statements, Captions [Line Items]

Condensed Consolidating Financial Statements [Table Text Block]

CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME FOR THE THREE MONTHS ENDED MARCH 31, 2014
	Eaton Corporation plc			Eaton Corporation			Guarantors			Other subsidiaries			Consolidating adjustments			Total
Net sales	$	—		$	1,667		$	1,641		$	3,291		$	(1,107	)	$	5,492
Cost of products sold	—			1,342			1,218			2,392			(1,094		)	3,858
Selling and administrative expense	2			361			200			399			—			962
Research and development expense	—			60			50			52			—			162
Interest expense (income) - net	—			59			7			(6		)	2			62
Other expense (income) - net	—			5			3			(13		)	—			(5		)
Equity in (earnings) loss of    subsidiaries, net of tax	(469		)	(207		)	(485		)	(201		)	1,362			—
Intercompany expense (income) - net	28			(71		)	120			(77		)	—			—
Income before income taxes	439			118			528			745			(1,377		)	453
Income tax (benefit) expense	—			(25		)	(7		)	49			(5		)	12
Net income	439			143			535			696			(1,372		)	441
Less net income for    noncontrolling interests	—			—			—			(2		)	—			(2		)
Net income attributable to    Eaton ordinary shareholders	$	439		$	143		$	535		$	694		$	(1,372	)	$	439
Other comprehensive income (loss)	$	3		$	28		$	23		$	(15	)	$	(36	)	$	3
Total comprehensive income    attributable to Eaton    ordinary shareholders	$	442		$	171		$	558		$	679		$	(1,408	)	$	442

CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME FOR THE THREE MONTHS ENDED MARCH 31, 2013
	Eaton Corporation plc			Eaton Corporation			Guarantors			Other subsidiaries			Consolidating adjustments			Total
Net sales	$	—		$	1,588		$	1,573		$	3,273		$	(1,124	)	$	5,310
Cost of products sold	—			1,239			1,195			2,425			(1,124		)	3,735
Selling and administrative expense	2			341			198			417			—			958
Research and development expense	—			58			47			47			—			152
Interest expense (income) - net	—			74			7			(6		)	—			75
Other (income) expense - net	—			(5		)	8			(13		)	—			(10		)
Equity in (earnings) loss of    subsidiaries, net of tax	(444		)	(309		)	(567		)	(166		)	1,486			—
Intercompany expense (income) - net	64			(102		)	176			(138		)	—			—
Income before income taxes	378			292			509			707			(1,486		)	400
Income tax (benefit) expense	—			(2		)	(37		)	59			—			20
Net income	378			294			546			648			(1,486		)	380
Less net income for    noncontrolling interests	—			—			—			(2		)	—			(2		)
Net income attributable to    Eaton ordinary shareholders	$	378		$	294		$	546		$	646		$	(1,486	)	$	378
Other comprehensive loss	$	(235	)	$	(22	)	$	(233	)	$	(391	)	$	646		$	(235	)
Total comprehensive income    attributable to Eaton    ordinary shareholders	$	143		$	272		$	313		$	255		$	(840	)	$	143

CONDENSED CONSOLIDATING BALANCE SHEETS MARCH 31, 2014
	Eaton Corporation plc		Eaton Corporation		Guarantors		Other subsidiaries		Consolidating adjustments			Total
Assets
Current assets
Cash	$	8	$	46	$	12	$	718	$	—		$	784
Short-term investments	—		—		35		325		—			360
Accounts receivable - net	—		506		986		2,397		—			3,889
Intercompany accounts    receivable	10		682		3,508		4,900		(9,100		)	—
Inventory	—		368		656		1,558		(50		)	2,532
Prepaid expenses and    other current assets	—		473		156		476		13			1,118
Total current assets	18		2,075		5,353		10,374		(9,137		)	8,683
Property, plant and    equipment - net	—		966		765		2,075		—			3,806
Other noncurrent assets
Goodwill	—		1,382		6,301		6,767		—			14,450
Other intangible assets	—		207		3,949		2,922		—			7,078
Deferred income taxes	—		826		12		153		(734		)	257
Investment in subsidiaries	25,427		9,057		41,344		8,701		(84,529		)	—
Intercompany loans receivable	—		7,872		2,643		19,840		(30,355		)	—
Other assets	—		417		183		388		—			988
Total assets	$	25,445	$	22,802	$	60,550	$	51,220	$	(124,755	)	$	35,262
Liabilities and    shareholders’ equity
Current liabilities
Short-term debt	$	—	$	—	$	—	$	8	$	—		$	8
Current portion of    long-term debt	—		301		1		14		—			316
Accounts payable	—		475		391		1,210		—			2,076
Intercompany accounts payable	10		3,609		3,626		1,855		(9,100		)	—
Accrued compensation	—		48		42		244		—			334
Other current liabilities	10		667		381		1,017		(4		)	2,071
Total current liabilities	20		5,100		4,441		4,348		(9,104		)	4,805
Noncurrent liabilities
Long-term debt	—		7,720		1,259		17		(5		)	8,991
Pension liabilities	—		375		79		774		—			1,228
Other postretirement    benefits liabilities	—		402		171		93		—			666
Deferred income taxes	—		—		1,287		743		(734		)	1,296
Intercompany loans payable	8,388		2,669		18,084		1,214		(30,355		)	—
Other noncurrent liabilities	—		545		155		465		—			1,165
Total noncurrent liabilities	8,388		11,711		21,035		3,306		(31,094		)	13,346
Shareholders’ equity
Eaton shareholders' equity	17,037		5,991		35,074		43,499		(84,564		)	17,037
Noncontrolling interests	—		—		—		67		7			74
Total equity	17,037		5,991		35,074		43,566		(84,557		)	17,111
Total liabilities and equity	$	25,445	$	22,802	$	60,550	$	51,220	$	(124,755	)	$	35,262

CONDENSED CONSOLIDATING BALANCE SHEETS DECEMBER 31, 2013
	Eaton Corporation plc		Eaton Corporation		Guarantors		Other subsidiaries		Consolidating adjustments			Total
Assets
Current assets
Cash	$	3	$	51	$	10	$	851	$	—		$	915
Short-term investments	—		—		134		660		—			794
Accounts receivable - net	—		473		922		2,253		—			3,648
Intercompany accounts    receivable	5		471		3,368		4,470		(8,314		)	—
Inventory	—		344		609		1,466		(37		)	2,382
Prepaid expenses and    other current assets	—		458		175		350		9			992
Total current assets	8		1,797		5,218		10,050		(8,342		)	8,731
Property, plant and    equipment - net	—		982		761		2,090		—			3,833
Other noncurrent assets
Goodwill	—		1,382		6,350		6,763		—			14,495
Other intangible assets	—		211		3,996		2,979		—			7,186
Deferred income taxes	—		839		3		145		(747		)	240
Investment in subsidiaries	24,940		8,853		40,776		8,473		(83,042		)	—
Intercompany loans receivable	—		8,019		2,518		18,776		(29,313		)	—
Other assets	—		450		186		370		—			1,006
Total assets	$	24,948	$	22,533	$	59,808	$	49,646	$	(121,444	)	$	35,491
Liabilities and    shareholders’ equity
Current liabilities
Short-term debt	$	—	$	—	$	—	$	13	$	—		$	13
Current portion of    long-term debt	—		552		—		15		—			567
Accounts payable	—		440		380		1,140		—			1,960
Intercompany accounts payable	4		3,751		3,288		1,271		(8,314		)	—
Accrued compensation	—		140		37		284		—			461
Other current liabilities	5		547		400		965		(4		)	1,913
Total current liabilities	9		5,430		4,105		3,688		(8,318		)	4,914
Noncurrent liabilities
Long-term debt	—		7,693		1,266		16		(6		)	8,969
Pension liabilities	—		546		131		788		—			1,465
Other postretirement    benefits liabilities	—		402		171		95		—			668
Deferred income taxes	—		—		1,303		757		(747		)	1,313
Intercompany loans payable	8,148		2,113		18,207		845		(29,313		)	—
Other noncurrent liabilities	—		652		162		485		—			1,299
Total noncurrent liabilities	8,148		11,406		21,240		2,986		(30,066		)	13,714
Shareholders’ equity
Eaton shareholders' equity	16,791		5,697		34,463		42,906		(83,066		)	16,791
Noncontrolling interests	—		—		—		66		6			72
Total equity	16,791		5,697		34,463		42,972		(83,060		)	16,863
Total liabilities and equity	$	24,948	$	22,533	$	59,808	$	49,646	$	(121,444	)	$	35,491

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS FOR THE THREE MONTHS ENDED MARCH 31, 2014
	Eaton Corporation plc			Eaton Corporation			Guarantors			Other subsidiaries			Consolidating adjustments			Total
Net cash provided by (used in)    operating activities	$	17		$	(463	)	$	182		$	276		$	—		$	12
Investing activities
Capital expenditures for property,    plant and equipment	—			(25		)	(29		)	(56		)	—			(110		)
Sales of short-term investments - net	—			—			98			333			—			431
Loans to affiliates	—			(7		)	—			(1,056		)	1,063			—
Repayments of loans from affiliates	—			171			—			814			(985		)	—
Proceeds from sale of business	—			—			—			3			—			3
Other - net	—			(13		)	(1		)	(6		)	—			(20		)
Net cash provided by    investing activities	—			126			68			32			78			304
Financing activities
Payments on borrowings	—			(251		)	—			(6		)	—			(257		)
Proceeds from borrowings from    affiliates	—			946			110			7			(1,063		)	—
Payments on borrowings from    affiliates	—			(510		)	(304		)	(171		)	985			—
Other intercompany    financing activities	217			104			(54		)	(267		)	—			—
Cash dividends paid	(229		)	—			—			—			—			(229		)
Exercise of employee stock options	—			23			—			—			—			23
Excess tax benefit from    equity-based compensation	—			20			—			—			—			20
Net cash (used in) provided by    financing activities	(12		)	332			(248		)	(437		)	(78		)	(443		)
Effect of currency on cash	—			—			—			(4		)	—			(4		)
Total increase (decrease) in cash	5			(5		)	2			(133		)	—			(131		)
Cash at the beginning of the period	3			51			10			851			—			915
Cash at the end of the period	$	8		$	46		$	12		$	718		$	—		$	784

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS FOR THE THREE MONTHS ENDED MARCH 31, 2013
	Eaton Corporation plc			Eaton Corporation			Guarantors			Other subsidiaries			Consolidating adjustments			Total
Net cash provided by (used in)    operating activities	$	62		$	(301	)	$	778		$	(439	)	$	—		$	100
Investing activities
Capital expenditures for property,    plant and equipment	—			(51		)	(18		)	(53		)	—			(122		)
Sales of short-term investments - net	—			25			31			76			—			132
Loans to affiliates	—			(36		)	—			(438		)	474			—
Repayments of loans from affiliates	—			28			82			303			(413		)	—
Proceeds from sale of business	—			—			—			761			—			761
Other - net	—			4			(3		)	1			—			2
Net cash (used in) provided by    investing activities	—			(30		)	92			650			61			773
Financing activities
Payments on borrowings	—			(676		)	(8		)	(3		)	—			(687		)
Proceeds from borrowings from    affiliates	—			437			1			36			(474		)	—
Payments on borrowings from    affiliates	—			(131		)	(171		)	(111		)	413			—
Other intercompany    financing activities	129			687			(692		)	(124		)	—			—
Cash dividends paid	(194		)	—			—			—			—			(194		)
Exercise of employee stock options	—			56			—			—			—			56
Excess tax benefit from    equity-based compensation	—			16			—			—			—			16
Other - net	—			—			—			(1		)	—			(1		)
Net cash (used in) provided by    financing activities	(65		)	389			(870		)	(203		)	(61		)	(810		)
Effect of currency on cash	—			—			—			(1		)	—			(1		)
Total (decrease) increase in cash	(3		)	58			—			7			—			62
Cash at the beginning of the period	7			54			14			502			—			577
Cash at the end of the period	$	4		$	112		$	14		$	509		$	—		$	639

XML

Amounts Recognized in Accumulated Other Comprehensive Income (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Interest expense - net [Member] | Fair Value Hedging [Member]
Amounts recognized in net income
Gain (loss) recognized in net income	$ 0	$ 0
Fixed-to-floating interest rate swaps [Member] | Interest expense - net [Member] | Fair Value Hedging [Member]
Amounts recognized in net income
Gain (loss) recognized in net income	29	(8)
Currency exchange contracts [Member] | Cost of products sold [Member] | Cash flow hedges [Member]
Amounts recognized in accumulated other comprehensive income (loss)
Gain (loss) recognized in accumulated other comprehensive income (loss)	2	(9)
Gain (loss) reclassified from accumulated other comprehensive income (loss)	2	1
Related long term debt converted to floating interest rates by interest rate swaps [Member] | Interest expense - net [Member] | Fair Value Hedging [Member]
Amounts recognized in net income
Gain (loss) recognized in net income	$ (29)	$ 8

XML

Acquisitions and Sale of Businesses Sale of Aerospace Power Distribution Management Solutions and Integrated Cockpit Solutions (Details) (Subsequent Event [Member], USD $) In Millions, unless otherwise specified	3 Months Ended
	Jun. 30, 2014
Subsequent Event [Member]
Subsequent Event [Line Items]
Sale price, Agreement to sell the Aerospace Power Distribution Management Solutions and Integrated Cockpit Solutions businesses to Safran	$ 270

XML

Acquisition Integration Charges and Transaction Costs (Details) (USD $) In Millions, except Per Share data, unless otherwise specified	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Acquisition integration charges
Acquisition integration charges	$ 66	$ 26
Transaction costs
Transaction costs	0	5
Total acquisition integration charges and transaction costs before income taxes	66	31
Total after income taxes	44	22
Per ordinary share - diluted	$ 0.09	$ 0.05
Corporate
Acquisition integration charges
Acquisition integration charges	7	6
Transaction costs
Transaction costs	0	5
Electrical Products [Member]
Acquisition integration charges
Acquisition integration charges	29	3
Electrical Systems and Services [Member]
Acquisition integration charges
Acquisition integration charges	26	5
Hydraulics [Member]
Acquisition integration charges
Acquisition integration charges	4	12
Total business segments
Acquisition integration charges
Acquisition integration charges	$ 59	$ 20

XML

Acquisition Integration and Restructuring Charges

3 Months Ended

Mar. 31, 2014

Acquisition Integration and Restructuring Charges [Abstract]

ACQUISITION INTEGRATION AND RESTRUCTURING CHARGES

ACQUISITION INTEGRATION AND RESTRUCTURING CHARGES

Eaton incurs integration charges and transaction costs related to acquired businesses. A summary of these charges follows:

	Three months ended March 31
	2014		2013
Acquisition integration charges
Electrical Products	$	29	$	3
Electrical Systems and Services	26		5
Hydraulics	4		12
Total business segments	59		20
Corporate	7		6
Total acquisition integration charges	66		26
Transaction costs
Corporate	—		5
Total transaction costs	—		5
Total acquisition integration charges and transaction costs before income taxes	$	66	$	31
Total after income taxes	$	44	$	22
Per ordinary share - diluted	$	0.09	$	0.05

Business segment integration charges in the first quarter of 2014 were related primarily to the integration of Cooper. Business segment integration charges in the first quarter of 2013 were related primarily to the integrations of Cooper, Polimer Kaucuk Sanayi ve Pazarlama, Jeil Hydraulics, and Rolec Comercial e Industrial S.A. These charges were included in Cost of products sold or Selling and administrative expense, as appropriate. In Business Segment Information the charges reduced Operating profit of the related business segment.

Corporate integration charges in 2014 and 2013 were related primarily to the acquisition of Cooper. These charges were included in Selling and administrative expense. In Business Segment Information the charges were included in Other corporate expense - net.

Acquisition-related transaction costs, such as investment banking, legal, other professional fees, and costs associated with change in control agreements, are not included as a component of consideration transferred in an acquisition but are expensed as incurred. Acquisition-related transaction costs in 2013 were related to the acquisition of Cooper. These charges were included in Selling and administrative expense, Interest expense - net and Other income - net. In Business Segment Information the charges were included in Interest expense - net and Other corporate expense - net.

See Note 2 for additional information about business acquisitions.

Restructuring Charges

During 2013, Eaton undertook restructuring activities related to the acquisition and integration of Cooper in an effort to gain efficiencies in selling, marketing, traditional back-office functions and manufacturing and distribution. These actions resulted in charges totaling $36 in 2013 and $41 in the first quarter of 2014, comprised primarily of severance costs. These restructuring initiatives are expected to continue through 2015.

Restructuring charges were included in Cost of products sold or Selling and administrative expense, as appropriate. In Business Segment Information, the charges reduced Operating profit of the related business segment. See Note 12 for additional information about business segments. As of March 31, 2014 and December 31, 2013, liabilities related to restructuring actions totaled $63 and $32, respectively.

During April 2014, the Company implemented certain restructuring activities in an effort to gain efficiencies in the Vehicle, Hydraulics and Aerospace business segments. These restructuring activities resulted in a charge of $40, comprised primarily of severance costs.

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Acquisition Integration and Restructuring Charges Restructuring Charges (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended	12 Months Ended	1 Months Ended
	Mar. 31, 2014	Dec. 31, 2013	Apr. 30, 2014 Subsequent Event [Member]
Restructuring Charges and Reserve
Restructuring charges	$ 41	$ 36	$ 40
Restructuring reserve, current	$ 63	$ 32

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Calculation of Net Income per Ordinary Share (Details) (USD $) In Millions, except Per Share data, unless otherwise specified	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Calculation of net income per ordinary share attributable to ordinary shareholders
Net income attributable to Eaton ordinary shareholders	$ 439	$ 378
Weighted-average number of ordinary shares outstanding - diluted	478.8	475.1
Less dilutive effect of equity-based compensation	3.0	3.2
Weighted-average number of ordinary shares outstanding - basic	475.8	471.9
Stock options excluded from calculation of diluted net income per ordinary share	0.1	0.1
Net income per ordinary share
Diluted	$ 0.92	$ 0.79
Basic	$ 0.92	$ 0.80

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Consolidated Statements of Income (USD $) In Millions, except Per Share data, unless otherwise specified	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Income Statement [Abstract]
Net sales	$ 5,492	$ 5,310
Cost of products sold	3,858	3,735
Selling and administrative expense	962	958
Research and development expense	162	152
Interest expense - net	62	75
Other income - net	(5)	(10)
Income before income taxes	453	400
Income tax expense	12	20
Net income	441	380
Less net income for noncontrolling interests	(2)	(2)
Net income attributable to Eaton ordinary shareholders	$ 439	$ 378
Net income per ordinary share
Diluted	$ 0.92	$ 0.79
Basic	$ 0.92	$ 0.80
Weighted-average number of ordinary shares outstanding
Diluted	478.8	475.1
Basic	475.8	471.9
Cash dividends declared per ordinary share	$ 0.49	$ 0.42

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Inventory (Details) (USD $) In Millions, unless otherwise specified	Mar. 31, 2014	Dec. 31, 2013
Inventory Disclosure [Abstract]
Raw materials	$ 1,103	$ 955
Work-in-process	323	428
Finished goods	1,226	1,115
Inventory at FIFO	2,652	2,498
Excess of FIFO over LIFO cost	(120)	(116)
Total inventory	$ 2,532	$ 2,382

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Basis of Presentation

3 Months Ended

Mar. 31, 2014

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 generally accepted accounting principles 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 2013 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 Exchange Commission.

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

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Legal Contingencies (Details) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2014 Raysul [Member] USD ($)	Mar. 31, 2014 Raysul [Member] BRL	Dec. 31, 2010 Raysul [Member] USD ($)	Dec. 31, 2010 Raysul [Member] BRL	Dec. 31, 2013 Meritor [Member] USD ($)	Sep. 28, 2012 Meritor [Member] USD ($)	Aug. 19, 2011 Meritor [Member] USD ($)	Jun. 09, 2011 Meritor [Member] USD ($)	Dec. 31, 2013 Frisby Parties [Member] USD ($)
Loss Contingencies [Line Items]
Loss Contingency Accrual	$ 35	79
Loss Contingency Accrual, Provision	8	19	27	60
Meritor Judgment motion denial zero damages and no injuctive relief								0
Final judgment of Eaton's liability by US district court in Meritor lawsuit							0
Court of Appeals, Third District, judgment reversal in favor of Meritor						0
Meritor, plaintiffs' damages expert's low range					475
Meritor, plaintiffs' damages expert's high range					800
Meritor, Eaton's damages expert, damages					0
Frisby Parties damages claim									$ 376

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Retirement Benefits Plans (Tables)

3 Months Ended

Mar. 31, 2014

Compensation and Retirement Disclosure [Abstract]

Retirement benefits plans expense

The components of retirement benefits expense follow:

	United States pension benefit expense						Non-United States pension benefit expense						Other postretirement benefits expense
	Three months ended March 31
	2014			2013			2014			2013			2014			2013
Service cost	$	29		$	32		$	16		$	15		$	4		$	5
Interest cost	40			37			22			20			9			9
Expected return on plan assets	(61		)	(57		)	(25		)	(21		)	(1		)	(2		)
Amortization	23			33			7			7			2			3
	31			45			20			21			14			15
Settlement loss	34			6			—			—			—			—
Total expense	$	65		$	51		$	20		$	21		$	14		$	15

XML

Income Taxes (Details)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Income Tax Contingency [Line Items]
Effective tax rate	3.00%	5.00%

XML

Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2014

Fair Value Disclosures [Abstract]

Summary of financial instruments recognized at fair value and fair value measurement used

A summary of financial instruments recognized at fair value, and the fair value measurements used, follows:

	Total			Quoted prices in active markets for identical assets (Level 1)		Other observable inputs (Level 2)			Unobservable inputs (Level 3)
March 31, 2014
Cash	$	784		$	784	$	—		$	—
Short-term investments	360			360		—			—
Net derivative contracts	1			—		1			—
Long-term debt converted to floating interest rates by    interest rate swaps - net	(10		)	—		(10		)	—
December 31, 2013
Cash	$	915		$	915	$	—		$	—
Short-term investments	794			794		—			—
Net derivative contracts	(35		)	—		(35		)	—
Long-term debt converted to floating interest rates by    interest rate swaps - net	(39		)	—		(39		)	—

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Acquisitions and Sale of Businesses

3 Months Ended

Mar. 31, 2014

Business Combinations [Abstract]

ACQUISITIONS AND SALE OF BUSINESSES

ACQUISITIONS AND SALE OF BUSINESSES

Eaton's most recently acquired businesses, and the related annual sales prior to acquisition, are summarized below:

Acquired businesses	Date of transaction	Business segment	Annual sales
Cooper Industries plc (Cooper)	November 30, 2012	Electrical Products; Electrical Systems and Services	$5,409 for 2011
A diversified global manufacturer of electrical products and systems, with brands including Bussmann electrical and electronic fuses; Crouse-Hinds and CEAG explosion-proof electrical equipment; Halo and Metalux lighting fixtures; and Kyle and McGraw-Edison power systems products.
Rolec Comercial e Industrial S.A.	September 28, 2012	Electrical Systems and Services	$85 for the 12 months ended September 30, 2012
A Chilean manufacturer of integrated power assemblies and low- and medium-voltage switchgear, and a provider of engineering services serving mining and other heavy industrial applications in Chile and Peru.
Jeil Hydraulics Co., Ltd.	July 6, 2012	Hydraulics	$189 for 2011
A Korean manufacturer of track drive motors, swing drive motors, main control valves and remote control valves for the construction equipment market.
Polimer Kaucuk Sanayi ve Pazarlama A.S.	June 1, 2012	Hydraulics	$335 for 2011
A Turkish manufacturer of hydraulic and industrial hose for construction, mining, agriculture, oil and gas, manufacturing, food and beverage, and chemicals markets. This business sells its products under the SEL brand name.
Gycom Electrical Low-Voltage Power Distribution, Control and Automation	June 1, 2012	Electrical Systems and Services	$24 for 2011
A Swedish electrical low-voltage power distribution, control and automation components business.

See Note 3 for information about acquisition integration charges and transaction costs related to these acquisitions.

Sale of Aerospace Power Distribution Management Solutions and Integrated Cockpit Solutions

On January 20, 2014, Eaton announced it entered into an agreement to sell the Aerospace Power Distribution Management Solutions and Integrated Cockpit Solutions businesses to Safran for $270. The sale, which was approved by Eaton's Board of Directors, is subject to regulatory approvals and other customary closing conditions. The transaction is expected to close in the second quarter of 2014.

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Consolidated Statements of Comprehensive Income (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Net income	$ 441	$ 380
Less net income for noncontrolling interests	(2)	(2)
Net income attributable to Eaton ordinary shareholders	439	378
Other comprehensive income, net of tax
Currency translation and related hedging instruments	(47)	(281)
Pensions and other postretirement benefits	50	53
Cash flow hedges	0	(7)
Other comprehensive income (loss) attributable to Eaton ordinary shareholders	3	(235)
Total comprehensive income attributable to Eaton ordinary shareholders	$ 442	$ 143

XML

Business Segment Information

3 Months Ended

Mar. 31, 2014

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. For additional information regarding Eaton’s business segments, see Note 14 to the Consolidated Financial Statements contained in the 2013 Form 10-K.

	Three months ended March 31
	2014			2013
Net sales
Electrical Products	$	1,726		$	1,660
Electrical Systems and Services	1,524			1,521
Hydraulics	782			756
Aerospace	464			434
Vehicle	996			939
Total net sales	$	5,492		$	5,310
Segment operating profit
Electrical Products	$	250		$	241
Electrical Systems and Services	169			210
Hydraulics	108			78
Aerospace	62			62
Vehicle	151			132
Total segment operating profit	740			723
Corporate
Amortization of intangible assets	(110		)	(107		)
Interest expense - net	(62		)	(75		)
Pension and other postretirement benefits expense	(51		)	(38		)
Inventory step-up adjustment	—			(33		)
Other corporate expense - net	(64		)	(70		)
Income before income taxes	453			400
Income tax expense	12			20
Net income	441			380
Less net income for noncontrolling interests	(2		)	(2		)
Net income attributable to Eaton ordinary shareholders	$	439		$	378

XML

Document and Entity Information Document (USD $) In Billions, except Share data in Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2014	Jun. 30, 2013
Entity Information [Line Items]
Entity Registrant Name	Eaton Corp plc
Trading Symbol	ETN
Entity Central Index Key	0001551182
Document Type	10-Q
Document Period End Date	Mar. 31, 2014
Amendment Flag	false
Document Fiscal Year Focus	2014
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 Public Float		$ 31.2
Entity Common Stock, Shares Outstanding	476.7

XML

Condensed Consolidating Financial Information (Notes)

3 Months Ended

Mar. 31, 2014

Condensed Financial Statements, Captions [Line Items]

CONDENSED CONSOLIDATING FINANCIAL STATEMENTS [Text Block]

CONDENSED CONSOLIDATING FINANCIAL STATEMENTS

On November 20, 2012, Eaton Corporation issued senior notes (the Senior Notes) totaling $4,900 to finance part of the cash portion of the acquisition of Cooper. Eaton and certain other of Eaton's principal 100% owned 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.

CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME FOR THE THREE MONTHS ENDED MARCH 31, 2014
	Eaton Corporation plc			Eaton Corporation			Guarantors			Other subsidiaries			Consolidating adjustments			Total
Net sales	$	—		$	1,667		$	1,641		$	3,291		$	(1,107	)	$	5,492
Cost of products sold	—			1,342			1,218			2,392			(1,094		)	3,858
Selling and administrative expense	2			361			200			399			—			962
Research and development expense	—			60			50			52			—			162
Interest expense (income) - net	—			59			7			(6		)	2			62
Other expense (income) - net	—			5			3			(13		)	—			(5		)
Equity in (earnings) loss of    subsidiaries, net of tax	(469		)	(207		)	(485		)	(201		)	1,362			—
Intercompany expense (income) - net	28			(71		)	120			(77		)	—			—
Income before income taxes	439			118			528			745			(1,377		)	453
Income tax (benefit) expense	—			(25		)	(7		)	49			(5		)	12
Net income	439			143			535			696			(1,372		)	441
Less net income for    noncontrolling interests	—			—			—			(2		)	—			(2		)
Net income attributable to    Eaton ordinary shareholders	$	439		$	143		$	535		$	694		$	(1,372	)	$	439
Other comprehensive income (loss)	$	3		$	28		$	23		$	(15	)	$	(36	)	$	3
Total comprehensive income    attributable to Eaton    ordinary shareholders	$	442		$	171		$	558		$	679		$	(1,408	)	$	442

CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME FOR THE THREE MONTHS ENDED MARCH 31, 2013
	Eaton Corporation plc			Eaton Corporation			Guarantors			Other subsidiaries			Consolidating adjustments			Total
Net sales	$	—		$	1,588		$	1,573		$	3,273		$	(1,124	)	$	5,310
Cost of products sold	—			1,239			1,195			2,425			(1,124		)	3,735
Selling and administrative expense	2			341			198			417			—			958
Research and development expense	—			58			47			47			—			152
Interest expense (income) - net	—			74			7			(6		)	—			75
Other (income) expense - net	—			(5		)	8			(13		)	—			(10		)
Equity in (earnings) loss of    subsidiaries, net of tax	(444		)	(309		)	(567		)	(166		)	1,486			—
Intercompany expense (income) - net	64			(102		)	176			(138		)	—			—
Income before income taxes	378			292			509			707			(1,486		)	400
Income tax (benefit) expense	—			(2		)	(37		)	59			—			20
Net income	378			294			546			648			(1,486		)	380
Less net income for    noncontrolling interests	—			—			—			(2		)	—			(2		)
Net income attributable to    Eaton ordinary shareholders	$	378		$	294		$	546		$	646		$	(1,486	)	$	378
Other comprehensive loss	$	(235	)	$	(22	)	$	(233	)	$	(391	)	$	646		$	(235	)
Total comprehensive income    attributable to Eaton    ordinary shareholders	$	143		$	272		$	313		$	255		$	(840	)	$	143

CONDENSED CONSOLIDATING BALANCE SHEETS MARCH 31, 2014
	Eaton Corporation plc		Eaton Corporation		Guarantors		Other subsidiaries		Consolidating adjustments			Total
Assets
Current assets
Cash	$	8	$	46	$	12	$	718	$	—		$	784
Short-term investments	—		—		35		325		—			360
Accounts receivable - net	—		506		986		2,397		—			3,889
Intercompany accounts    receivable	10		682		3,508		4,900		(9,100		)	—
Inventory	—		368		656		1,558		(50		)	2,532
Prepaid expenses and    other current assets	—		473		156		476		13			1,118
Total current assets	18		2,075		5,353		10,374		(9,137		)	8,683
Property, plant and    equipment - net	—		966		765		2,075		—			3,806
Other noncurrent assets
Goodwill	—		1,382		6,301		6,767		—			14,450
Other intangible assets	—		207		3,949		2,922		—			7,078
Deferred income taxes	—		826		12		153		(734		)	257
Investment in subsidiaries	25,427		9,057		41,344		8,701		(84,529		)	—
Intercompany loans receivable	—		7,872		2,643		19,840		(30,355		)	—
Other assets	—		417		183		388		—			988
Total assets	$	25,445	$	22,802	$	60,550	$	51,220	$	(124,755	)	$	35,262
Liabilities and    shareholders’ equity
Current liabilities
Short-term debt	$	—	$	—	$	—	$	8	$	—		$	8
Current portion of    long-term debt	—		301		1		14		—			316
Accounts payable	—		475		391		1,210		—			2,076
Intercompany accounts payable	10		3,609		3,626		1,855		(9,100		)	—
Accrued compensation	—		48		42		244		—			334
Other current liabilities	10		667		381		1,017		(4		)	2,071
Total current liabilities	20		5,100		4,441		4,348		(9,104		)	4,805
Noncurrent liabilities
Long-term debt	—		7,720		1,259		17		(5		)	8,991
Pension liabilities	—		375		79		774		—			1,228
Other postretirement    benefits liabilities	—		402		171		93		—			666
Deferred income taxes	—		—		1,287		743		(734		)	1,296
Intercompany loans payable	8,388		2,669		18,084		1,214		(30,355		)	—
Other noncurrent liabilities	—		545		155		465		—			1,165
Total noncurrent liabilities	8,388		11,711		21,035		3,306		(31,094		)	13,346
Shareholders’ equity
Eaton shareholders' equity	17,037		5,991		35,074		43,499		(84,564		)	17,037
Noncontrolling interests	—		—		—		67		7			74
Total equity	17,037		5,991		35,074		43,566		(84,557		)	17,111
Total liabilities and equity	$	25,445	$	22,802	$	60,550	$	51,220	$	(124,755	)	$	35,262

CONDENSED CONSOLIDATING BALANCE SHEETS DECEMBER 31, 2013
	Eaton Corporation plc		Eaton Corporation		Guarantors		Other subsidiaries		Consolidating adjustments			Total
Assets
Current assets
Cash	$	3	$	51	$	10	$	851	$	—		$	915
Short-term investments	—		—		134		660		—			794
Accounts receivable - net	—		473		922		2,253		—			3,648
Intercompany accounts    receivable	5		471		3,368		4,470		(8,314		)	—
Inventory	—		344		609		1,466		(37		)	2,382
Prepaid expenses and    other current assets	—		458		175		350		9			992
Total current assets	8		1,797		5,218		10,050		(8,342		)	8,731
Property, plant and    equipment - net	—		982		761		2,090		—			3,833
Other noncurrent assets
Goodwill	—		1,382		6,350		6,763		—			14,495
Other intangible assets	—		211		3,996		2,979		—			7,186
Deferred income taxes	—		839		3		145		(747		)	240
Investment in subsidiaries	24,940		8,853		40,776		8,473		(83,042		)	—
Intercompany loans receivable	—		8,019		2,518		18,776		(29,313		)	—
Other assets	—		450		186		370		—			1,006
Total assets	$	24,948	$	22,533	$	59,808	$	49,646	$	(121,444	)	$	35,491
Liabilities and    shareholders’ equity
Current liabilities
Short-term debt	$	—	$	—	$	—	$	13	$	—		$	13
Current portion of    long-term debt	—		552		—		15		—			567
Accounts payable	—		440		380		1,140		—			1,960
Intercompany accounts payable	4		3,751		3,288		1,271		(8,314		)	—
Accrued compensation	—		140		37		284		—			461
Other current liabilities	5		547		400		965		(4		)	1,913
Total current liabilities	9		5,430		4,105		3,688		(8,318		)	4,914
Noncurrent liabilities
Long-term debt	—		7,693		1,266		16		(6		)	8,969
Pension liabilities	—		546		131		788		—			1,465
Other postretirement    benefits liabilities	—		402		171		95		—			668
Deferred income taxes	—		—		1,303		757		(747		)	1,313
Intercompany loans payable	8,148		2,113		18,207		845		(29,313		)	—
Other noncurrent liabilities	—		652		162		485		—			1,299
Total noncurrent liabilities	8,148		11,406		21,240		2,986		(30,066		)	13,714
Shareholders’ equity
Eaton shareholders' equity	16,791		5,697		34,463		42,906		(83,066		)	16,791
Noncontrolling interests	—		—		—		66		6			72
Total equity	16,791		5,697		34,463		42,972		(83,060		)	16,863
Total liabilities and equity	$	24,948	$	22,533	$	59,808	$	49,646	$	(121,444	)	$	35,491

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS FOR THE THREE MONTHS ENDED MARCH 31, 2014
	Eaton Corporation plc			Eaton Corporation			Guarantors			Other subsidiaries			Consolidating adjustments			Total
Net cash provided by (used in)    operating activities	$	17		$	(463	)	$	182		$	276		$	—		$	12
Investing activities
Capital expenditures for property,    plant and equipment	—			(25		)	(29		)	(56		)	—			(110		)
Sales of short-term investments - net	—			—			98			333			—			431
Loans to affiliates	—			(7		)	—			(1,056		)	1,063			—
Repayments of loans from affiliates	—			171			—			814			(985		)	—
Proceeds from sale of business	—			—			—			3			—			3
Other - net	—			(13		)	(1		)	(6		)	—			(20		)
Net cash provided by    investing activities	—			126			68			32			78			304
Financing activities
Payments on borrowings	—			(251		)	—			(6		)	—			(257		)
Proceeds from borrowings from    affiliates	—			946			110			7			(1,063		)	—
Payments on borrowings from    affiliates	—			(510		)	(304		)	(171		)	985			—
Other intercompany    financing activities	217			104			(54		)	(267		)	—			—
Cash dividends paid	(229		)	—			—			—			—			(229		)
Exercise of employee stock options	—			23			—			—			—			23
Excess tax benefit from    equity-based compensation	—			20			—			—			—			20
Net cash (used in) provided by    financing activities	(12		)	332			(248		)	(437		)	(78		)	(443		)
Effect of currency on cash	—			—			—			(4		)	—			(4		)
Total increase (decrease) in cash	5			(5		)	2			(133		)	—			(131		)
Cash at the beginning of the period	3			51			10			851			—			915
Cash at the end of the period	$	8		$	46		$	12		$	718		$	—		$	784

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS FOR THE THREE MONTHS ENDED MARCH 31, 2013
	Eaton Corporation plc			Eaton Corporation			Guarantors			Other subsidiaries			Consolidating adjustments			Total
Net cash provided by (used in)    operating activities	$	62		$	(301	)	$	778		$	(439	)	$	—		$	100
Investing activities
Capital expenditures for property,    plant and equipment	—			(51		)	(18		)	(53		)	—			(122		)
Sales of short-term investments - net	—			25			31			76			—			132
Loans to affiliates	—			(36		)	—			(438		)	474			—
Repayments of loans from affiliates	—			28			82			303			(413		)	—
Proceeds from sale of business	—			—			—			761			—			761
Other - net	—			4			(3		)	1			—			2
Net cash (used in) provided by    investing activities	—			(30		)	92			650			61			773
Financing activities
Payments on borrowings	—			(676		)	(8		)	(3		)	—			(687		)
Proceeds from borrowings from    affiliates	—			437			1			36			(474		)	—
Payments on borrowings from    affiliates	—			(131		)	(171		)	(111		)	413			—
Other intercompany    financing activities	129			687			(692		)	(124		)	—			—
Cash dividends paid	(194		)	—			—			—			—			(194		)
Exercise of employee stock options	—			56			—			—			—			56
Excess tax benefit from    equity-based compensation	—			16			—			—			—			16
Other - net	—			—			—			(1		)	—			(1		)
Net cash (used in) provided by    financing activities	(65		)	389			(870		)	(203		)	(61		)	(810		)
Effect of currency on cash	—			—			—			(1		)	—			(1		)
Total (decrease) increase in cash	(3		)	58			—			7			—			62
Cash at the beginning of the period	7			54			14			502			—			577
Cash at the end of the period	$	4		$	112		$	14		$	509		$	—		$	639

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Condensed Consolidated Balance Sheets (USD $) In Millions, unless otherwise specified	Mar. 31, 2014	Dec. 31, 2013
Assets
Cash	$ 784	$ 915
Short-term investments	360	794
Accounts receivable - net	3,889	3,648
Inventory	2,532	2,382
Deferred income taxes	554	577
Prepaid expenses and other current assets	564	415
Total current assets	8,683	8,731
Property, plant and equipment - net	3,806	3,833
Other noncurrent assets
Goodwill	14,450	14,495
Other intangible assets	7,078	7,186
Deferred income taxes	257	240
Other assets	988	1,006
Total assets	35,262	35,491
Current liabilities
Short-term debt	8	13
Current portion of long-term debt	316	567
Accounts payable	2,076	1,960
Accrued compensation	334	461
Other current liabilities	2,071	1,913
Total current liabilities	4,805	4,914
Noncurrent liabilities
Long-term debt	8,991	8,969
Pension liabilities	1,228	1,465
Other postretirement benefits liabilities	666	668
Deferred income taxes	1,296	1,313
Other noncurrent liabilities	1,165	1,299
Total noncurrent liabilities	13,346	13,714
Shareholders' equity
Eaton shareholders' equity	17,037	16,791
Noncontrolling interests	74	72
Total equity	17,111	16,863
Total liabilities and equity	$ 35,262	$ 35,491

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Income Taxes

3 Months Ended

Mar. 31, 2014

Income Tax Uncertainties [Abstract]

INCOME TAXES

INCOME TAXES

The effective income tax rate for the first quarter of 2014 was 3% compared to 5% for the first quarter of 2013. The lower effective tax rate in the first quarter of 2014 was primarily attributable to a more favorable geographic mix of income.

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Legal Contingencies

3 Months Ended

Mar. 31, 2014

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 (including asbestos claims), antitrust matters and employment-related matters. 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. This judgment is based on an alleged violation of an agency agreement between Raysul and Saturnia. At March 31, 2014, the Company has a total accrual of 79 Brazilian Reais related to this matter ($35 based on current exchange rates), comprised of 60 Brazilian Reais recognized in the fourth quarter of 2010 ($27 based on current exchange rates) with an additional 19 Brazilian Reais recognized through March 31, 2014 ($8 based on current exchange rates). In 2010, Eaton filed motions for clarification with the Brazilian court of appeals which were denied on April 6, 2011. Eaton Holding and Eaton Ltda. filed appeals on various issues to the Superior Court of Justice in Brasilia. In April 2013, the Superior Court of Justice ruled in favor of Raysul. Additional motions for clarification have been filed with the Superior Court of Justice in Brasilia and an additional appeal is being considered. The Company expects that any sum it may be required to pay in connection with this matter will not exceed the amount of the recorded liability.

On October 5, 2006, ZF Meritor LLC and Meritor Transmission Corporation (collectively, Meritor) filed an action against Eaton in the United States District Court for Delaware. The action sought damages, which would be trebled under United States antitrust laws, as well as injunctive relief and costs. The suit alleged that Eaton engaged in anti-competitive conduct against Meritor in the sale of heavy-duty truck transmissions in North America. Following a four week trial on liability only, on October 8, 2009, the jury returned a verdict in favor of Meritor. Eaton firmly believes that it competes fairly and honestly for business in the marketplace, and that at no time did it act in an anti-competitive manner. During an earlier stage in the case, the judge concluded that damage estimates contained in a report filed by Meritor were not based on reliable data and the report was specifically excluded from the case. On November 3, 2009, Eaton filed a motion for judgment as a matter of law and to set aside the verdict. That motion was denied on March 10, 2011. On March 14, 2011, Eaton filed a motion for entry of final judgment of liability, zero damages and no injunctive relief. That motion was denied on June 9, 2011. On August 19, 2011, the Court entered final judgment of liability but awarded zero damages to plaintiffs. The Court also entered an injunction prohibiting Eaton from offering rebates or other incentives based on purchasing targets but stayed the injunction pending appeal. Eaton appealed the liability finding and the injunction to the Third Circuit Court of Appeals. Meritor cross-appealed the finding of zero damages. On September 28, 2012, the Third Circuit Court of Appeals affirmed the District Court's denial of Eaton's motion for judgment as a matter of law, and let stand the jury verdict in favor of Meritor. The Third Circuit Court of Appeals also ruled that the plaintiffs' damages report was properly excluded, but reversed the judgment of zero damages and ordered that the District Court must allow plaintiffs a limited opportunity to amend the damages report, which may be re-considered for reliability and admissibility. Injunctive relief also was vacated. On remand to the District Court, plaintiffs submitted an amended damages report in which their expert opined that damages range between $475 and $800. On December 20, 2013, the District court ruled that the plaintiffs' damages expert could testify at trial and be subjected to cross-examination. The District Court has scheduled a jury trial for the second quarter of 2014. Eaton's damages expert opined that damages are zero. An estimate of any potential loss related to this action cannot be made at this time.

Frisby Corporation, now known as Triumph Actuation Systems, LLC, and other claimants (collectively, the Frisby Parties) asserted claims alleging, among other things, unfair competition, defamation, malicious prosecution, deprivation of civil rights, and antitrust in the Hinds County Circuit Court of Mississippi in 2004 and in the Federal District Court of North Carolina in 2011. Eaton had asserted claims against the Frisby Parties regarding improper use of trade secrets and these claims were dismissed by the Hinds County Circuit Court. On September 25, 2013, the Mississippi Supreme Court issued an order that stayed all proceedings in the Hinds County Circuit Court pending further order of the Mississippi Supreme Court. On November 21, 2013, the Mississippi Supreme Court upheld the dismissal of Eaton's claims but did not lift the stay on all proceedings in the Hinds County Circuit Court. Prior to the stay, the Frisby Parties submitted various expert damage designations related to their claims to the Hinds County Circuit Court, claiming damages of at least $376. Eaton disputes liability to the Frisby Parties and Eaton's experts dispute the amount of damages claimed by the experts for the Frisby Parties. An estimate of any potential loss related to this action cannot be made at this time.

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Equity (Tables)

3 Months Ended

Mar. 31, 2014

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, 2013	$	16,791		$	72	$	16,863
Net income	439			2		441
Other comprehensive income	3			—		3
Cash dividends paid and accrued	(234		)	—		(234		)
Issuance of shares under equity-based compensation plans - net	38			—		38
Balance at March 31, 2014	$	17,037		$	74	$	17,111

Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block]

The changes in Accumulated other comprehensive (loss) income follow:

	Currency translation and related hedging instruments			Pensions and other postretirement benefits			Cash flow hedges			Total
Balance at December 31, 2013	$	(395	)	$	(1,170	)	$	5		$	(1,560	)
Other comprehensive (loss) income     before reclassifications	(47		)	9			1			(37		)
Amounts reclassified from Accumulated other    comprehensive (loss) income	—			41			(1		)	40
Net current-period other comprehensive    (loss) income	(47		)	50			—			3
Balance at March 31, 2014	$	(442	)	$	(1,120	)	$	5		$	(1,557	)

Reclassification out of accumulated other comprehensive income [Table Text Block]

The reclassifications out of Accumulated other comprehensive loss follow:

	Three months ended March 31, 2014			Consolidated Statements of Income classification
Amortization of defined benefit pension items
Actuarial loss	$	(66	)	1
Tax benefit	25
Total, net of tax	(41		)
Loss on cash flow hedges
Currency exchange contracts	2			Cost of products sold
Tax expense	(1		)
Total, net of tax	1
Total reclassifications for the period	$	(40	)

Calculation of net income per ordinary share attributable to ordinary shareholders

A summary of the calculation of net income per ordinary share attributable to shareholders follows:

	Three months ended March 31
(Shares in millions)	2014		2013
Net income attributable to Eaton ordinary shareholders	$	439	$	378
Weighted-average number of ordinary shares outstanding - diluted	478.8		475.1
Less dilutive effect of equity-based compensation	3.0		3.2
Weighted-average number of ordinary shares outstanding - basic	475.8		471.9
Net income per ordinary share
Diluted	$	0.92	$	0.79
Basic	0.92		0.80

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Acquisitions of Businesses (Tables)

3 Months Ended

Mar. 31, 2014

Business Acquisition [Line Items]

Schedule of Business Acquisitions, by Acquisition [Table Text Block]

Eaton's most recently acquired businesses, and the related annual sales prior to acquisition, are summarized below:

Acquired businesses	Date of transaction	Business segment	Annual sales
Cooper Industries plc (Cooper)	November 30, 2012	Electrical Products; Electrical Systems and Services	$5,409 for 2011
A diversified global manufacturer of electrical products and systems, with brands including Bussmann electrical and electronic fuses; Crouse-Hinds and CEAG explosion-proof electrical equipment; Halo and Metalux lighting fixtures; and Kyle and McGraw-Edison power systems products.
Rolec Comercial e Industrial S.A.	September 28, 2012	Electrical Systems and Services	$85 for the 12 months ended September 30, 2012
A Chilean manufacturer of integrated power assemblies and low- and medium-voltage switchgear, and a provider of engineering services serving mining and other heavy industrial applications in Chile and Peru.
Jeil Hydraulics Co., Ltd.	July 6, 2012	Hydraulics	$189 for 2011
A Korean manufacturer of track drive motors, swing drive motors, main control valves and remote control valves for the construction equipment market.
Polimer Kaucuk Sanayi ve Pazarlama A.S.	June 1, 2012	Hydraulics	$335 for 2011
A Turkish manufacturer of hydraulic and industrial hose for construction, mining, agriculture, oil and gas, manufacturing, food and beverage, and chemicals markets. This business sells its products under the SEL brand name.
Gycom Electrical Low-Voltage Power Distribution, Control and Automation	June 1, 2012	Electrical Systems and Services	$24 for 2011
A Swedish electrical low-voltage power distribution, control and automation components business.

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Derivative Financial Instruments and Hedging Activities

3 Months Ended

Mar. 31, 2014

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 was $97 and $95, net of tax, at March 31, 2014 and December 31, 2013, respectively.

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 long-term assets		Other current liabilities		Other long-term liabilities		Type of hedge	Term
March 31, 2014
Derivatives designated as hedges
Fixed-to-floating interest rate swaps	$	3,290	$	—	$	39	$	—	$	49	Fair value	3 to 20 years
Floating-to-fixed interest rate swaps	300		—		—		—		—		Cash flow	3 months
Currency exchange contracts	495		12		—		3		—		Cash flow	12 to 36 months
Commodity contracts	1		—		—		—		—		Cash flow	1 to 12 months
Total			$	12	$	39	$	3	$	49
Derivatives not designated as hedges
Currency exchange contracts	$	4,160	$	23			$	21				1 to 12 months

	Notional amount		Other  current assets		Other long-term assets		Other current liabilities		Other long-term liabilities		Type of hedge	Term
December 31, 2013
Derivatives designated as hedges
Fixed-to-floating interest rate swaps	$	3,090	$	1	$	36	$	—	$	76	Fair value	3 months to 20 years
Floating-to-fixed interest rate swaps	300		—		—		1		—		Cash flow	6 months
Currency exchange contracts	393		12		—		3		—		Cash flow	12 to 36 months
Commodity contracts	1		—		—		—		—		Cash flow	1 to 12 months
Total			$	13	$	36	$	4	$	76
Derivatives not designated as hedges
Currency exchange contracts	$	4,277	$	22			$	26				1 to 12 months

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.

Amounts recognized in Accumulated other comprehensive income (loss) follow:

	Three months ended March 31
	2014				2013
	Gain (loss) recognized in Accumulated other comprehensive income (loss)		Gain (loss) reclassified from Accumulated other comprehensive income (loss)		Gain (loss) recognized in Accumulated other comprehensive income (loss)			Gain (loss) reclassified from Accumulated other comprehensive income (loss)
Derivatives designated as cash flow hedges
Currency exchange contracts	$	2	$	2	$	(9	)	$	1

Gains and losses reclassified from Accumulated other comprehensive income to the Consolidated Statements of Income were recognized in Cost of products sold.

Amounts recognized in net income follow:

	Three months ended March 31
	2014			2013
Derivatives designated as fair value hedges
Fixed-to-floating interest rate swaps	$	29		$	(8	)
Related long-term debt converted to floating interest rates by interest rate swaps	(29		)	8
	$	—		$	—

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

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Equity

3 Months Ended

Mar. 31, 2014

Stockholders' Equity Note [Abstract]

EQUITY

EQUITY

The changes in Shareholders’ equity follow:

	Eaton shareholders’ equity			Noncontrolling interests		Total equity
Balance at December 31, 2013	$	16,791		$	72	$	16,863
Net income	439			2		441
Other comprehensive income	3			—		3
Cash dividends paid and accrued	(234		)	—		(234		)
Issuance of shares under equity-based compensation plans - net	38			—		38
Balance at March 31, 2014	$	17,037		$	74	$	17,111

The changes in Accumulated other comprehensive (loss) income follow:

	Currency translation and related hedging instruments			Pensions and other postretirement benefits			Cash flow hedges			Total
Balance at December 31, 2013	$	(395	)	$	(1,170	)	$	5		$	(1,560	)
Other comprehensive (loss) income     before reclassifications	(47		)	9			1			(37		)
Amounts reclassified from Accumulated other    comprehensive (loss) income	—			41			(1		)	40
Net current-period other comprehensive    (loss) income	(47		)	50			—			3
Balance at March 31, 2014	$	(442	)	$	(1,120	)	$	5		$	(1,557	)

The reclassifications out of Accumulated other comprehensive loss follow:

	Three months ended March 31, 2014			Consolidated Statements of Income classification
Amortization of defined benefit pension items
Actuarial loss	$	(66	)	1
Tax benefit	25
Total, net of tax	(41		)
Loss on cash flow hedges
Currency exchange contracts	2			Cost of products sold
Tax expense	(1		)
Total, net of tax	1
Total reclassifications for the period	$	(40	)

¹ These components of Accumulated other comprehensive loss are included in the computation of net periodic pension cost. See Note 5 for additional information about defined benefit pension items.

Net Income per Ordinary Share

A summary of the calculation of net income per ordinary share attributable to shareholders follows:

	Three months ended March 31
(Shares in millions)	2014		2013
Net income attributable to Eaton ordinary shareholders	$	439	$	378
Weighted-average number of ordinary shares outstanding - diluted	478.8		475.1
Less dilutive effect of equity-based compensation	3.0		3.2
Weighted-average number of ordinary shares outstanding - basic	475.8		471.9
Net income per ordinary share
Diluted	$	0.92	$	0.79
Basic	0.92		0.80

For the first quarter 2014 and 2013, 0.1 million stock options were excluded from the calculation of diluted net income per ordinary share because the exercise price of the options exceeded the average market price of the ordinary shares during the period and their effect, accordingly, would have been antidilutive.

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Fair Value Measurements

3 Months Ended

Mar. 31, 2014

Fair Value Disclosures [Abstract]

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS

Fair value is measured based on an exit price, representing the amount that would be received to sell an asset or paid to satisfy a liability in an orderly transaction between market participants. Fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions, a fair value hierarchy is established, which categorizes the inputs used in measuring fair value as follows: (Level 1) observable inputs such as quoted prices in active markets; (Level 2) inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and (Level 3) unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions.

A summary of financial instruments recognized at fair value, and the fair value measurements used, follows:

	Total			Quoted prices in active markets for identical assets (Level 1)		Other observable inputs (Level 2)			Unobservable inputs (Level 3)
March 31, 2014
Cash	$	784		$	784	$	—		$	—
Short-term investments	360			360		—			—
Net derivative contracts	1			—		1			—
Long-term debt converted to floating interest rates by    interest rate swaps - net	(10		)	—		(10		)	—
December 31, 2013
Cash	$	915		$	915	$	—		$	—
Short-term investments	794			794		—			—
Net derivative contracts	(35		)	—		(35		)	—
Long-term debt converted to floating interest rates by    interest rate swaps - net	(39		)	—		(39		)	—

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 recognized using unobservable inputs.

Other Fair Value Measurements

Long-term debt and the current portion of long-term debt had a carrying value of $9,307 and fair value of $9,683 at March 31, 2014 compared to $9,536 and $9,665, respectively, at December 31, 2013. The fair value of Eaton's debt instruments was estimated using prevailing market interest rates on debt with similar creditworthiness, terms and maturities and is considered a Level 2 fair value measurement.

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Inventory

3 Months Ended

Mar. 31, 2014

Inventory Disclosure [Abstract]

INVENTORY

INVENTORY

The components of inventory follow:

	March 31, 2014			December 31, 2013
Raw materials	$	1,103		$	955
Work-in-process	323			428
Finished goods	1,226			1,115
Inventory at FIFO	2,652			2,498
Excess of FIFO over LIFO cost	(120		)	(116		)
Total inventory	$	2,532		$	2,382

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Retirement Benefits Plans (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
United States pension benefit expense [Member]
Retirement benefits plans expense
Service cost	$ 29	$ 32
Interest cost	40	37
Expected return on plan assets	(61)	(57)
Amortization	23	33
Total	31	45
Settlement loss	34	6
Total expense	65	51
Non-United States pension benefit expense [Member]
Retirement benefits plans expense
Service cost	16	15
Interest cost	22	20
Expected return on plan assets	(25)	(21)
Amortization	7	7
Total	20	21
Settlement loss	0	0
Total expense	20	21
Other postretirement benefits expense [Member]
Retirement benefits plans expense
Service cost	4	5
Interest cost	9	9
Expected return on plan assets	(1)	(2)
Amortization	2	3
Total	14	15
Settlement loss	0	0
Total expense	$ 14	$ 15

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Goodwill (Tables)

3 Months Ended

Mar. 31, 2014

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Goodwill

A summary of goodwill follows:

	March 31, 2014		December 31, 2013
Electrical Products	$	7,153	$	7,189
Electrical Systems and Services	4,508		4,517
Hydraulics	1,384		1,385
Aerospace	1,048		1,048
Vehicle	357		356
Total goodwill	$	14,450	$	14,495

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Inventory (Tables)

3 Months Ended

Mar. 31, 2014

Inventory Disclosure [Abstract]

Components of inventory

The components of inventory follow:

	March 31, 2014			December 31, 2013
Raw materials	$	1,103		$	955
Work-in-process	323			428
Finished goods	1,226			1,115
Inventory at FIFO	2,652			2,498
Excess of FIFO over LIFO cost	(120		)	(116		)
Total inventory	$	2,532		$	2,382

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Condensed Consolidating Financial Information Condensed Balance Sheet (Details) (USD $) In Millions, unless otherwise specified	Mar. 31, 2014	Dec. 31, 2013	Mar. 31, 2013	Dec. 31, 2012
Condensed Balance Sheet Statements, Captions [Line Items]
Cash	$ 784	$ 915	$ 639	$ 577
Short-term investments	360	794
Accounts receivable - net	3,889	3,648
Intercompany accounts receivable	0	0
Inventory	2,532	2,382
Prepaid expenses other current assets	1,118	992
Total current assets	8,683	8,731
Property, plant and equipment - net	3,806	3,833
Goodwill	14,450	14,495
Other intangible assets	7,078	7,186
Deferred income taxes	257	240
Investment in subsidiaries	0	0
Intercompany loans receivables	0	0
Other assets	988	1,006
Total assets	35,262	35,491
Short-term debt	8	13
Current portion of long-term debt	316	567
Accounts payable	2,076	1,960
Intercompany accounts payable	0	0
Accrued compensation	334	461
Other current liabilities	2,071	1,913
Total current liabilities	4,805	4,914
Long-term debt	8,991	8,969
Pension liabilities	1,228	1,465
Other postretirement benefits liabilities	666	668
Deferred income taxes	1,296	1,313
Intercompany loans payable	0	0
Other noncurrent liabilities	1,165	1,299
Total noncurrent liabilities	13,346	13,714
Eaton shareholders' equity	17,037	16,791
Noncontrolling interests	74	72
Total equity	17,111	16,863
Total liabilities and equity	35,262	35,491
Eaton Corporation plc [Member]
Condensed Balance Sheet Statements, Captions [Line Items]
Cash	8	3	4	7
Short-term investments	0	0
Accounts receivable - net	0	0
Intercompany accounts receivable	10	5
Inventory	0	0
Prepaid expenses other current assets	0	0
Total current assets	18	8
Property, plant and equipment - net	0	0
Goodwill	0	0
Other intangible assets	0	0
Deferred income taxes	0	0
Investment in subsidiaries	25,427	24,940
Intercompany loans receivables	0	0
Other assets	0	0
Total assets	25,445	24,948
Short-term debt	0	0
Current portion of long-term debt	0	0
Accounts payable	0	0
Intercompany accounts payable	10	4
Accrued compensation	0	0
Other current liabilities	10	5
Total current liabilities	20	9
Long-term debt	0	0
Pension liabilities	0	0
Other postretirement benefits liabilities	0	0
Deferred income taxes	0	0
Intercompany loans payable	8,388	8,148
Other noncurrent liabilities	0	0
Total noncurrent liabilities	8,388	8,148
Eaton shareholders' equity	17,037	16,791
Noncontrolling interests	0	0
Total equity	17,037	16,791
Total liabilities and equity	25,445	24,948
Eaton Corporation [Member]
Condensed Balance Sheet Statements, Captions [Line Items]
Cash	46	51	112	54
Short-term investments	0	0
Accounts receivable - net	506	473
Intercompany accounts receivable	682	471
Inventory	368	344
Prepaid expenses other current assets	473	458
Total current assets	2,075	1,797
Property, plant and equipment - net	966	982
Goodwill	1,382	1,382
Other intangible assets	207	211
Deferred income taxes	826	839
Investment in subsidiaries	9,057	8,853
Intercompany loans receivables	7,872	8,019
Other assets	417	450
Total assets	22,802	22,533
Short-term debt	0	0
Current portion of long-term debt	301	552
Accounts payable	475	440
Intercompany accounts payable	3,609	3,751
Accrued compensation	48	140
Other current liabilities	667	547
Total current liabilities	5,100	5,430
Long-term debt	7,720	7,693
Pension liabilities	375	546
Other postretirement benefits liabilities	402	402
Deferred income taxes	0	0
Intercompany loans payable	2,669	2,113
Other noncurrent liabilities	545	652
Total noncurrent liabilities	11,711	11,406
Eaton shareholders' equity	5,991	5,697
Noncontrolling interests	0	0
Total equity	5,991	5,697
Total liabilities and equity	22,802	22,533
Guarantors [Member]
Condensed Balance Sheet Statements, Captions [Line Items]
Cash	12	10	14	14
Short-term investments	35	134
Accounts receivable - net	986	922
Intercompany accounts receivable	3,508	3,368
Inventory	656	609
Prepaid expenses other current assets	156	175
Total current assets	5,353	5,218
Property, plant and equipment - net	765	761
Goodwill	6,301	6,350
Other intangible assets	3,949	3,996
Deferred income taxes	12	3
Investment in subsidiaries	41,344	40,776
Intercompany loans receivables	2,643	2,518
Other assets	183	186
Total assets	60,550	59,808
Short-term debt	0	0
Current portion of long-term debt	1	0
Accounts payable	391	380
Intercompany accounts payable	3,626	3,288
Accrued compensation	42	37
Other current liabilities	381	400
Total current liabilities	4,441	4,105
Long-term debt	1,259	1,266
Pension liabilities	79	131
Other postretirement benefits liabilities	171	171
Deferred income taxes	1,287	1,303
Intercompany loans payable	18,084	18,207
Other noncurrent liabilities	155	162
Total noncurrent liabilities	21,035	21,240
Eaton shareholders' equity	35,074	34,463
Noncontrolling interests	0	0
Total equity	35,074	34,463
Total liabilities and equity	60,550	59,808
Other subsidiaries [Member]
Condensed Balance Sheet Statements, Captions [Line Items]
Cash	718	851	509	502
Short-term investments	325	660
Accounts receivable - net	2,397	2,253
Intercompany accounts receivable	4,900	4,470
Inventory	1,558	1,466
Prepaid expenses other current assets	476	350
Total current assets	10,374	10,050
Property, plant and equipment - net	2,075	2,090
Goodwill	6,767	6,763
Other intangible assets	2,922	2,979
Deferred income taxes	153	145
Investment in subsidiaries	8,701	8,473
Intercompany loans receivables	19,840	18,776
Other assets	388	370
Total assets	51,220	49,646
Short-term debt	8	13
Current portion of long-term debt	14	15
Accounts payable	1,210	1,140
Intercompany accounts payable	1,855	1,271
Accrued compensation	244	284
Other current liabilities	1,017	965
Total current liabilities	4,348	3,688
Long-term debt	17	16
Pension liabilities	774	788
Other postretirement benefits liabilities	93	95
Deferred income taxes	743	757
Intercompany loans payable	1,214	845
Other noncurrent liabilities	465	485
Total noncurrent liabilities	3,306	2,986
Eaton shareholders' equity	43,499	42,906
Noncontrolling interests	67	66
Total equity	43,566	42,972
Total liabilities and equity	51,220	49,646
Consolidating adjustments [Member]
Condensed Balance Sheet Statements, Captions [Line Items]
Cash	0	0	0	0
Short-term investments	0	0
Accounts receivable - net	0	0
Intercompany accounts receivable	(9,100)	(8,314)
Inventory	(50)	(37)
Prepaid expenses other current assets	13	9
Total current assets	(9,137)	(8,342)
Property, plant and equipment - net	0	0
Goodwill	0	0
Other intangible assets	0	0
Deferred income taxes	(734)	(747)
Investment in subsidiaries	(84,529)	(83,042)
Intercompany loans receivables	(30,355)	(29,313)
Other assets	0	0
Total assets	(124,755)	(121,444)
Short-term debt	0	0
Current portion of long-term debt	0	0
Accounts payable	0	0
Intercompany accounts payable	(9,100)	(8,314)
Accrued compensation	0	0
Other current liabilities	(4)	(4)
Total current liabilities	(9,104)	(8,318)
Long-term debt	(5)	(6)
Pension liabilities	0	0
Other postretirement benefits liabilities	0	0
Deferred income taxes	(734)	(747)
Intercompany loans payable	(30,355)	(29,313)
Other noncurrent liabilities	0	0
Total noncurrent liabilities	(31,094)	(30,066)
Eaton shareholders' equity	(84,564)	(83,066)
Noncontrolling interests	7	6
Total equity	(84,557)	(83,060)
Total liabilities and equity	$ (124,755)	$ (121,444)

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Fair Value Measurements (Details) (USD $) In Millions, unless otherwise specified	Mar. 31, 2014	Dec. 31, 2013	Mar. 31, 2013	Dec. 31, 2012
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items]
Cash	$ 784	$ 915	$ 639	$ 577
Short-term investments	360	794
Net derivative contracts	1	(35)
Long-term debt converted to floating interest rates by interest rate swaps - net	(10)	(39)
Quoted prices in active markets for identical assets (Level 1) [Member]
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items]
Cash	784	915
Short-term investments	360	794
Net derivative contracts	0	0
Long-term debt converted to floating interest rates by interest rate swaps - net	0	0
Other observable inputs (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	1	(35)
Long-term debt converted to floating interest rates by interest rate swaps - net	(10)	(39)
Unobservable inputs (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

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Condensed Consolidated Statements of Cash Flows (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Operating activities
Net income	$ 441	$ 380
Adjustments to reconcile to net cash provided by operating activities
Depreciation and amortization	249	245
Deferred income taxes	(24)	104
Pension and other postretirement benefits expense	99	87
Contributions to pension plans	(272)	(208)
Excess tax benefit from equity-based compensation	(20)	(16)
Changes in working capital	(370)	(546)
Other - net	(91)	54
Net cash provided by operating activities	12	100
Investing activities
Capital expenditures for property, plant and equipment	(110)	(122)
Sales of short-term investments - net	431	132
Proceeds from sale of business	3	761
Other - net	(20)	2
Net cash provided by investing activities	304	773
Financing activities
Payments on borrowings	(257)	(687)
Cash dividends paid	(229)	(194)
Exercise of employee stock options	23	56
Excess tax benefit from equity-based compensation	20	16
Other - net	0	(1)
Net cash used in financing activities	(443)	(810)
Effect of currency on cash	(4)	(1)
Total (decrease) increase in cash	(131)	62
Cash at the beginning of the period	915	577
Cash at the end of the period	$ 784	$ 639

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Retirement Benefits Plans

3 Months Ended

Mar. 31, 2014

Compensation and Retirement Disclosure [Abstract]

RETIREMENT BENEFITS PLANS

RETIREMENT BENEFITS PLANS

The components of retirement benefits expense follow:

	United States pension benefit expense						Non-United States pension benefit expense						Other postretirement benefits expense
	Three months ended March 31
	2014			2013			2014			2013			2014			2013
Service cost	$	29		$	32		$	16		$	15		$	4		$	5
Interest cost	40			37			22			20			9			9
Expected return on plan assets	(61		)	(57		)	(25		)	(21		)	(1		)	(2		)
Amortization	23			33			7			7			2			3
	31			45			20			21			14			15
Settlement loss	34			6			—			—			—			—
Total expense	$	65		$	51		$	20		$	21		$	14		$	15

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Business Segment Information (Tables)

3 Months Ended

Mar. 31, 2014

Segment Reporting [Abstract]

Business Segment Information

	Three months ended March 31
	2014			2013
Net sales
Electrical Products	$	1,726		$	1,660
Electrical Systems and Services	1,524			1,521
Hydraulics	782			756
Aerospace	464			434
Vehicle	996			939
Total net sales	$	5,492		$	5,310
Segment operating profit
Electrical Products	$	250		$	241
Electrical Systems and Services	169			210
Hydraulics	108			78
Aerospace	62			62
Vehicle	151			132
Total segment operating profit	740			723
Corporate
Amortization of intangible assets	(110		)	(107		)
Interest expense - net	(62		)	(75		)
Pension and other postretirement benefits expense	(51		)	(38		)
Inventory step-up adjustment	—			(33		)
Other corporate expense - net	(64		)	(70		)
Income before income taxes	453			400
Income tax expense	12			20
Net income	441			380
Less net income for noncontrolling interests	(2		)	(2		)
Net income attributable to Eaton ordinary shareholders	$	439		$	378

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Changes in Accumulated Other Comprehensive (Loss) Income (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Other comprehensive income (loss)	$ 3	$ (235)
Cash flow hedges [Member]
Balance at December 31, 2013	5
Other comprehensive (loss) income before reclassifications	1
Amounts reclassified from Accumulated other comprehensive (loss) income	(1)
Other comprehensive income (loss)	0
Balance at March 31, 2014	5
Accumulated Other Comprehensive Income (Loss) [Member]
Balance at December 31, 2013	(1,560)
Other comprehensive (loss) income before reclassifications	(37)
Amounts reclassified from Accumulated other comprehensive (loss) income	40
Other comprehensive income (loss)	3
Balance at March 31, 2014	(1,557)
Currency translation and related hedging instruments [Member]
Balance at December 31, 2013	(395)
Other comprehensive (loss) income before reclassifications	(47)
Amounts reclassified from Accumulated other comprehensive (loss) income	0
Other comprehensive income (loss)	(47)
Balance at March 31, 2014	(442)
Pension and other postretirement benefits [Member]
Balance at December 31, 2013	(1,170)
Other comprehensive (loss) income before reclassifications	9
Amounts reclassified from Accumulated other comprehensive (loss) income	41
Other comprehensive income (loss)	50
Balance at March 31, 2014	$ (1,120)

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Acquisition Integration Charges and Transaction Costs (Tables)

3 Months Ended

Mar. 31, 2014

Acquisition Integration and Restructuring Charges [Abstract]

Acquisition integration charges and transaction costs

A summary of these charges follows:

	Three months ended March 31
	2014		2013
Acquisition integration charges
Electrical Products	$	29	$	3
Electrical Systems and Services	26		5
Hydraulics	4		12
Total business segments	59		20
Corporate	7		6
Total acquisition integration charges	66		26
Transaction costs
Corporate	—		5
Total transaction costs	—		5
Total acquisition integration charges and transaction costs before income taxes	$	66	$	31
Total after income taxes	$	44	$	22
Per ordinary share - diluted	$	0.09	$	0.05