10-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-K

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

For the year endedDecember 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)
Eaton House, 30 Pembroke Road, Dublin 4, Ireland	-
(Address of principal executive offices)	(Zip code)

		+1 (440) 523-5000
		(Registrant's telephone number, including area code)
	Securities registered pursuant to Section 12(b) of the Act:
Title of each class			Name of each exchange on which registered
Ordinary Shares ($0.01 par value)			The New York Stock Exchange

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

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

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 if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (§229.405 of this chapter) is not contained herein, and will not be contained, to the best of registrant's knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. 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 definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

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 Act). Yes o No þ

The aggregate market value of Ordinary Shares held by non-affiliates of the registrant as of June 30, 2014 was $36.7 billion.

As of January 31, 2015, there were 467.9 million Ordinary Shares outstanding.

Documents Incorporated By Reference

Portions of the Proxy Statement for the 2015 annual shareholders meeting are incorporated by reference into Part III.

TABLE OF CONTENTS
Part I		2
Item 1.	Business	2
Item 1A.	Risk Factors	4
Item 1B.	Unresolved Staff Comments	6
Item 2.	Properties	6
Item 3.	Legal Proceedings	6
Item 4.	Mine Safety Disclosures	6
Part II		7
Item 5.	Market for the Registrant's Ordinary Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities	7
Item 6.	Selected Financial Data	7
Item 7.	Management's Discussion and Analysis of Financial Condition and Results of Operations	7
Item 7A.	Quantitative and Qualitative Disclosures about Market Risk	7
Item 8.	Financial Statements and Supplementary Data	8
Item 9.	Change in and Disagreements with Accountants on Accounting and Financial Disclosure	8
Item 9A.	Controls and Procedures	8
Item 9B.	Other Information	8
Part III		8
Item 10.	Directors, Executive Officers and Corporate Governance	8
Item 11.	Executive Compensation	9
Item 12.	Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters	9
Item 13.	Certain Relationships and Related Transactions, and Director Independence	10
Item 14.	Principal Accounting Fees and Services	10
Part IV		10
Item 15.	Exhibits, Financial Statement Schedules	10
SIGNATURES		14
Exhibit Index
EX-12
EX-21
EX-23
EX-24
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 LABELS LINKBASE DOCUMENT
EX-101 PRESENTATION LINKBASE DOCUMENT
EX-101 DEFINITION LINKBASE DOCUMENT

Part I

Item 1. Business.

Eaton Corporation plc (Eaton or the Company) is a power management company with 2014 net sales of $22.6 billion. The Company provides energy-efficient solutions that help its customers effectively manage electrical, hydraulic and mechanical power more efficiently, safely and sustainably. Eaton has approximately 102,000 employees in over 60 countries and sells products to customers in more than 175 countries.

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

Acquisitions and Sales of Businesses

Cooper Industries plc

On November 30, 2012, Eaton Corporation acquired Cooper Industries plc (Cooper) for a purchase price totaling $13,192 million, which consisted of cash totaling $6,543 million and Eaton share consideration valued at $6,649 million.

Cooper was 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. Cooper had annual sales of $5,409 million for 2011. Eaton's Consolidated Financial Statements include Cooper's results of operations from November 30, 2012. For segment reporting purposes, Cooper has been included within the Electrical Products and the Electrical Systems and Services business segments. Additional information related to the acquisition of Cooper and business segments is presented in Note 2 and Note 14, respectively, of the Notes to the Consolidated Financial Statements.

Acquisitions of Other Businesses

Eaton's other acquired businesses for 2012 are presented in Note 2 of the Notes to the Consolidated Financial Statements.

Sale of Aerospace Power Distribution Management Solutions and Integrated Cockpit Solutions

On May 9, 2014, Eaton sold the Aerospace Power Distribution Management Solutions and Integrated Cockpit Solutions businesses to Safran for $270, which resulted in a pre-tax gain of $154.

Sale of Apex Tool Group, LLC

In July 2010, Cooper formed a joint venture, named Apex Tool Group, LLC (Apex), with Danaher Corporation (Danaher). On February 1, 2013, Cooper and Danaher sold Apex to Bain Capital for approximately $1.6 billion, subject to post-closing adjustments.

Business Segment Information

Information by business segment and geographic region regarding principal products, principal markets, methods of distribution, net sales, operating profit and assets is presented in Note 14 of the Notes to the Consolidated Financial Statements. Additional information regarding Eaton's segments and business is presented below.

Electrical Products and Electrical Systems and Services

Principal methods of competition in these segments are performance of products and systems, technology, customer service and support, and price. Eaton has a strong competitive position in these segments and, with respect to many products, is considered among the market leaders. In normal economic cycles, sales of these segments are historically lower in the first quarter and higher in the third and fourth quarters of a year. In 2014, 18% of these segments' sales were made to four large distributors of electrical products and electrical systems and services.

2

Hydraulics

Principal methods of competition in this segment are product performance, geographic coverage, service, and price. Eaton has a strong competitive position in this segment and, with respect to many products, is considered among the market leaders. Sales of this segment are historically higher in the first and second quarters and lower in the third and fourth quarters of the year. In 2014, 12% of this segment's sales were made to three large original equipment manufacturers or distributors of agricultural, construction, and industrial equipment and parts.

Aerospace

Principal methods of competition in this segment are total cost of ownership, product and system performance, quality, design engineering capabilities, and timely delivery. Eaton has a strong competitive position in this segment and, with respect to many products and platforms, is considered among the market leaders. In 2014, 30% of this segment's sales were made to three large original equipment manufacturers of aircraft.

Vehicle

Principal methods of competition in this segment are product performance, technology, global service, and price. Eaton has a strong competitive position in this segment and, with respect to many products, is considered among the market leaders. In 2014, 57% of this segment's sales were made to seven large original equipment manufacturers of vehicles and related components.

Information Concerning Eaton's Business in General

Raw Materials

Eaton's major requirements for raw materials include iron, steel, copper, nickel, aluminum, brass, tin, silver, lead, molybdenum, titanium, vanadium, rubber, plastic, electronic components, insulating materials and fluids. Materials are purchased in various forms, such as extrusions, castings, powder metal, metal sheets and strips, forging billets, bar stock, and plastic pellets. Raw materials, as well as parts and other components, are purchased from many suppliers, although there are limited sources of supply for electrical core steel and insulating fluids. Under normal circumstances, the Company has no difficulty obtaining its raw materials. In 2014, Eaton maintained appropriate levels of inventory to prevent shortages and did not experience any availability constraints.

Patents and Trademarks

Eaton considers its intellectual property, including patents, trade names and trademarks, to be of significant value to its business as a whole. The Company's products are manufactured, marketed and sold under a portfolio of patents, trademarks, licenses, and other forms of intellectual property, some of which expire or are allowed to lapse at various dates in the future. Eaton develops and acquires new intellectual property on an ongoing basis and considers all of its intellectual property to be valuable. Based on the broad scope of the Company's product lines, management believes that the loss or expiration of any single intellectual property right would not have a material effect on Eaton's consolidated financial statements or its business segments. The Company's policy is to file applications and obtain patents for the great majority of its novel and innovative new products including product modifications and improvements.

Order Backlog

A significant portion of open orders placed with Eaton are by original equipment manufacturers or distributors. These open orders are not considered firm as they have been historically subject to month-to-month releases by customers. In measuring backlog orders, only the amount of orders to which customers are firmly committed are included. Using this criterion, total backlog at December 31, 2014 and 2013 was approximately $4.4 billion and $4.6 billion, respectively. Backlog should not be relied upon as being indicative of results of operations for future periods.

Research and Development

Research and development expenses for new products and improvement of existing products in 2014, 2013 and 2012 were $647 million, $644 million, and $439 million, respectively. Over the past five years, the Company has invested approximately $2.6 billion in research and development.

3

Environmental Contingencies

Operations of the Company involve the use and disposal of certain substances regulated under environmental protection laws. Eaton continues to modify processes on an ongoing, regular basis in order to reduce the impact on the environment, including the reduction or elimination of certain chemicals used in, and wastes generated from, operations. Compliance with laws that have been enacted or adopted regulating the discharge of materials into the environment, or otherwise relating to the protection of the environment, are not expected to have a material adverse effect upon earnings or the competitive position of the Company. Eaton's estimated capital expenditures for environmental control facilities are not expected to be material for 2015 and 2016. Information regarding the Company's liabilities related to environmental matters is presented in Note 7 of the Notes to the Consolidated Financial Statements.

Item 1A. Risk Factors.

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

Eaton may not realize all of the anticipated benefits from the acquisition of Cooper or those benefits may take longer to realize than expected.

Eaton's ability to realize the anticipated benefits of the Cooper transaction will depend, to a large extent, on the Company's ability to integrate the two businesses. The integration process may disrupt the businesses and, if implemented ineffectively, would preclude realization of the full benefits expected. The difficulties of combining the operations of the companies include, among others:

• the diversion of management's attention to integration matters;

• difficulties in achieving anticipated cost savings, synergies, business opportunities, and growth prospects from combining the business of Cooper with that of Eaton;

• difficulties in the integration of operations and systems;

• difficulties in managing the expanded operations of a significantly larger and more complex company;

• challenges in keeping existing customers and obtaining new customers; and

• challenges in attracting and retaining key personnel.

Many of these factors will be outside of Eaton's control and any one of them could result in increased costs, decreases in the amount of expected revenues and diversion of management's time and energy, which could materially impact the business, financial condition, and results of operations of Eaton.

Volatility of end markets that Eaton serves.

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

Eaton's operating results depend in part on continued successful research,development, and marketing of new and/or improved products and services, andthere can be no assurance that Eaton will continue to successfully introducenew products and services.

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

4

Eaton's ability to attract, develop and retain executives and other qualified employees is crucial to the Company's results of operations and future growth.

Eaton depends on the continued services and performance of key executives, senior management, and skilled personnel, particularly professionals with experience in its industry and business. Eaton cannot be certain that any of these individuals will continue his or her employment with the Company. A lengthy period of time is required to hire and develop replacement personnel when skilled personnel depart. An inability to hire, develop, and retain a sufficient number of qualified employees could materially hinder the business by, for example, delaying Eaton's ability to bring new products to market or impairing the success of the Company's operations.

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

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

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

Eaton relies on information technology networks and systems, including the Internet, to process, transmit and store electronic information, and to manage or support a variety of business processes and activities, including procurement, manufacturing, distribution, invoicing and collection. These technology networks and systems may be susceptible to damage, disruptions or shutdowns due to failures during the process of upgrading or replacing software, databases or components; power outages; hardware failures; or computer viruses. In addition, security breaches could result in unauthorized disclosure of confidential information. If these information technology systems suffer severe damage, disruption, or shutdown, and business continuity plans do not effectively resolve the issues in a timely manner, there could be a negative impact on operating results or the Company may suffer financial or reputational damage.

Eaton's global operations subject it to economic risk as Eaton'sresults of operations may be adversely affected by changes in governmentregulations and policies and currency fluctuations.

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

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

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

Eaton uses a variety of raw materials and components in its businesses, andsignificant shortages, price increases, or supplier insolvencies could increaseoperating costs and adversely impact the competitive positions of Eaton'sproducts.

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

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

5

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

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

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

At any given time, Eaton may be subject to litigation, the disposition of which may have a material adverse effect on the Company's businesses, financial condition or results of operations. Information regarding current legal proceedings is presented in Note 7 and Note 8 of the Notes to the Consolidated Financial Statements.

Legislative and regulatory action could materially adversely affect Eaton.

Legislative and regulatory action may be taken in the U.S. which, if ultimately enacted, could override tax treaties upon which Eaton relies or broaden the circumstances under which the Company would be considered a U.S. resident, each of which could materially and adversely affect its effective tax rate. Eaton cannot predict the outcome of any specific legislative or regulatory proposals. However, if proposals were enacted that had the effect of disregarding the incorporation in Ireland or limiting Eaton's ability as an Irish company to take advantage of tax treaties with the U.S., the Company could be subject to increased taxation and/or potentially significant expense.

Item 1B. Unresolved Staff Comments.

None.

Item 2. Properties.

Eaton's principal executive offices are located at Eaton House, 30 Pembroke Road, Dublin 4, Ireland. The Company maintains manufacturing facilities at 346 locations in 43 countries. The Company is a lessee under a number of operating leases for certain real properties and equipment, none of which is material to its operations. Management believes that the existing manufacturing facilities are adequate for its operations and that the facilities are maintained in good condition.

Item 3. Legal Proceedings.

Information regarding the Company's current legal proceedings is presented in Note 7 and Note 8 of the Notes to the Consolidated Financial Statements.

Item 4. Mine Safety Disclosures.

Not applicable.

Executive Officers of the Registrant

Information regarding executive officers of the Company is presented in Item 10 of this Form 10-K Report.

6

Part II

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

The Company's ordinary shares are listed for trading on the New York Stock Exchange. At December 31, 2014, there were 18,993 holders of record of the Company's ordinary shares. Additionally, 26,059 current and former employees were shareholders through participation in the Eaton Savings Plan (ESP), Eaton Personal Investment Plan (EPIP), Eaton Puerto Rico Retirement Savings Plan, and the Cooper Retirement Savings and Stock Ownership Plan.

Information regarding cash dividends paid, and the high and low market price per ordinary share, for each quarter in 2014 and 2013 is presented in “Quarterly Data” of this Form 10-K. Information regarding equity-based compensation plans required by Regulation S-K Item 201(d) is provided in Item 12 of this Form 10-K Report.

Irish Taxes Applicable to Dividends

In certain circumstances, Eaton will be required to deduct Irish dividend withholding tax (currently at the rate of 20%) from dividends paid to its shareholders. In the majority of cases, however, shareholders resident in the U.S. will not be subject to Irish withholding tax, and shareholders resident in a number of other countries will not be subject to Irish withholding tax provided that they complete certain Irish tax forms.

Irish income tax may also arise with respect to dividends paid on Eaton shares. Dividends paid in respect of Eaton shares will generally not be subject to Irish income tax where the beneficial owner of these shares is exempt from dividend withholding tax, unless the beneficial owner of the dividend has some connection with Ireland other than his or her shareholding in Eaton.

Eaton shareholders who receive their dividends subject to Irish dividend withholding tax will generally have no further liability to Irish income tax on the dividends unless the beneficial owner of the dividend has some connection with Ireland other than his or her shareholding in Eaton.

Issuer's Purchases of Equity Securities

During the fourth quarter of 2014, 4.8 million ordinary shares were repurchased in the open market at a total cost of $326 million. These shares were repurchased under the program announced and approved by shareholders on April 24, 2013 and approved by the Board of Directors on October 22, 2013. A summary of the shares repurchased in the fourth quarter of 2014 follows:

Month	Total number of shares purchased	Average price paid per share		Total number of shares purchased as part of publicly announced plans or programs	Maximum number of shares that may yet be purchased under the plans or programs
October	1,206,167	$	66.74	1,206,167	34,037,188
November	2,887,867	$	68.50	2,887,867	31,149,321
December	708,483	$	66.77	708,483	30,440,838
Total	4,802,517	$	67.80	4,802,517

Item 6. Selected Financial Data.

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

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

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

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

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

7

Item 8. Financial Statements and Supplementary Data.

The reports of the independent registered public accounting firm, consolidated financial statements, and notes to consolidated financial statements are presented on pages 15 through 66 of this Form 10-K.

Information regarding selected quarterly financial information for 2014 and 2013 is presented in “Quarterly Data” of this Form 10-K.

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

None.

Item 9A. Controls and Procedures.

Evaluation of Disclosure Controls and Procedures - Pursuant to SEC Rule 13a-15, an evaluation was performed under the supervision and with the participation of Eaton's management, including Alexander M. Cutler - Principal Executive Officer; and Richard H. Fearon - Principal Financial Officer, of the effectiveness of the design and operation of the Company's disclosure controls and procedures. Based on that evaluation, Eaton's management concluded that the Company's disclosure controls and procedures were effective as of December 31, 2014.

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

Pursuant to Section 404 of the Sarbanes Oxley Act of 2002 and the rules and regulations adopted pursuant thereto, Eaton has included a report of management's assessment of the effectiveness of internal control over financial reporting, which is presented on page 18.

“Report of Independent Registered Public Accounting Firm” relating to internal control over financial reporting as of December 31, 2014 is presented on page 17.

During the fourth quarter of 2014, there was no change in Eaton's internal control over financial reporting that materially affected, or is reasonably likely to materially affect, internal control over financial reporting.

Item 9B. Other Information.

None.

Part III

Item 10. Directors, Executive Officers and Corporate Governance.

Information required with respect to the directors of the Company is set forth under the caption “Election of Directors” in the Company's definitive Proxy Statement to be filed on or about March 13, 2015, and is incorporated by reference.

A listing of executive officers, their ages, positions and offices held over the past five years, as of February 1, 2015, follows:

Name	Age	Position (Date elected to position)
Alexander M. Cutler	63	Director of Eaton Corporation plc (November 30, 2012 - present)
		Chief Executive Officer and President of Eaton Corporation (August 1, 2000 - present)
		Director of Eaton Corporation (September 22, 1993 - November 30, 2012)
Richard H. Fearon	58	Vice Chairman and Chief Financial and Planning Officer of Eaton Corporation
		(April 24, 2002 - present)

8

Name	Age	Position (Date elected to position)
Craig Arnold	54	Vice Chairman and Chief Operating Officer - Industrial Sector of Eaton Corporation
		(February 1, 2009 - present)
Thomas S. Gross	60	Vice Chairman and Chief Operating Officer - Electrical Sector of Eaton Corporation
		(February 1, 2009 - present)
Cynthia K. Brabander	53	Executive Vice President and Chief Human Resources Officer of Eaton Corporation
		(March 1, 2012 - present)
		Senior Vice President, Human Resources of Gates Corporation
		(April 11, 2009 - January 10, 2012)
Mark M. McGuire	57	Executive Vice President and General Counsel of Eaton Corporation
		(December 1, 2005 - present)
Thomas E. Moran	50	Senior Vice President and Secretary of Eaton Corporation plc
		(November 27, 2012 - present)
		Senior Vice President and Secretary of Eaton Corporation
		(October 1, 2008 - January 1, 2013)
Ken D. Semelsberger	53	Senior Vice President and Controller of Eaton Corporation (November 1, 2013 - present)
		Senior Vice President, Finance and Planning - Industrial Sector of Eaton Corporation
		(February 1, 2009 - October 31, 2013)

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

Information required with respect to compliance with Section 16(a) of the Exchange Act is set forth under the caption “Section 16(a) Beneficial Ownership Reporting Compliance” in the Company's definitive Proxy Statement to be filed on or about March 13, 2015, and is incorporated by reference.

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

There were no changes during the fourth quarter 2014 to the procedures by which security holders may recommend nominees to the Company's Board of Directors.

Information related to the Audit Committee, and members of the Committee that are financial experts, is set forth under the caption “Board Committees - Audit Committee” in the definitive Proxy Statement to be filed on or about March 13, 2015, and is incorporated by reference.

Item 11. Executive Compensation.

Information required with respect to executive compensation is set forth under the caption “Executive Compensation” in the Company's definitive Proxy Statement to be filed on or about March 13, 2015, and is incorporated by reference.

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

Information required with respect to securities authorized for issuance under equity-based compensation plans is set forth under the caption “Equity Compensation Plans” in the Company's definitive Proxy Statement to be filed on or about March 13, 2015, and is incorporated by reference.

9

Information required with respect to security ownership of certain beneficial owners, is set forth under the caption “Share Ownership Tables” in the Company's definitive Proxy Statement to be filed on or about March 13, 2015, and is incorporated by reference.

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

Information required with respect to certain relationships and related transactions is set forth under the caption “Review of Related Person Transactions” in the Company's definitive Proxy Statement to be filed on or about March 13, 2015, and is incorporated by reference.

Information required with respect to director independence is set forth under the caption “Director Independence” in the Company's definitive Proxy Statement to be filed on or about March 13, 2015, and is incorporated by reference.

Item 14. Principal Accounting Fees and Services.

Information required with respect to principal accountant fees and services is set forth under the caption “Audit Committee Report” in the Company's definitive Proxy Statement to be filed on or about March 13, 2015, and is incorporated by reference.

Part IV

Item 15. Exhibits, Financial Statement Schedules.

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

Reports of Independent Registered Public Accounting Firm - Page 15 and 17

Consolidated Statements of Income - Years ended December 31, 2014, 2013 and 2012 - Page 19

Consolidated Statements of Comprehensive Income - Years ended December 31, 2014, 2013 and 2012 - Page 20

Consolidated Balance Sheets - December 31, 2014 and 2013 - Page 21

Consolidated Statements of Cash Flows - Years ended December 31, 2014, 2013 and 2012 - Page 22

Consolidated Statements of Shareholders' Equity - Years ended December 31, 2014, 2013 and 2012 - Page 23

Notes to Consolidated Financial Statements - Pages 24 through 66

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

(3) Exhibits

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), the Company 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 Material contracts

(a) Senior Executive Incentive Compensation Plan (effective February 27, 2013) - Incorporated by reference to the Form 10-K Report for the year ended December 31, 2012

(b) Deferred Incentive Compensation Plan II - Incorporated by reference to the Form 10-K Report for the year ended December 31, 2007

(c) First Amendment to Deferred Incentive Compensation Plan II - Incorporated by reference to the Form S-8 filed November 30, 2012

(d) Excess Benefits Plan II (2008 restatement) - Incorporated by reference to the Form 10-K Report for the year ended December 31, 2007

10

(e) First Amendment to Excess Benefits Plan II (2008 restatement) - Incorporated by reference to the Form 10-K Report for the year ended December 31, 2012

(f) Incentive Compensation Deferral Plan II - Incorporated by reference to the Form 10-K Report for the year ended December 31, 2007

(g) First Amendment to Incentive Compensation Deferral Plan II - Incorporated by reference to the Form S-8 filed November 30, 2012

(h) Limited Eaton Service Supplemental Retirement Income Plan II - Incorporated by reference to the Form 10-K Report for the year ended December 31, 2007

(i) First Amended to Limited Eaton Service Supplemental Retirement Income Plan II - Incorporated by reference to the Form 10-K Report for the year ended December 31, 2012

(j) Supplemental Benefits Plan II (2008 restatement) - Incorporated by reference to the Form 10-K Report for the year ended December 31, 2007

(k) First Amendment to Supplemental Benefits Plan II (2008 restatement) - Incorporated by reference to the Form 10-K Report for the year ended December 31, 2012

(l) Form of Restricted Share Unit Agreement - Incorporated by reference to the Form 10-Q Report for the quarter ended March 31, 2014

(m) Form of Restricted Share Agreement - Incorporated by reference to the Form 10-K Report for the year ended December 31, 2012

(n) Form of Restricted Share Agreement (Non-Employee Directors) - Incorporated by reference to the Form 8-K Report filed February 1, 2010

(o) Form of Directors' Restricted Share Unit Agreement - Incorporated by reference to the Form 10-K Report for the year ended December 31, 2012

(p) Form of Stock Option Agreement for Executives - Incorporated by reference to the Form 10-K Report for the year ended December 31, 2012

(q) Form of Stock Option Agreement for Non-Employee Directors (2008) - Incorporated by reference to the Form 10-K Report for the year ended December 31, 2007

(r) Amended and Restated 2002 Stock Plan - Incorporated by reference to the Form S-8 filed November 30, 2012

(s) Amended and Restated 2004 Stock Plan - Incorporated by reference to the Form S-8 filed November 30, 2012

(t) Amended and Restated 2008 Stock Plan - Incorporated by reference to the Form S-8 filed November 30, 2012

(u) Second Amended and Restated 2009 Stock Plan - Incorporated by reference to the Form S-8 filed November 30, 2012

(v) Amended and Restated 2012 Stock Plan - Incorporated by reference to the Form S-8 filed November 30, 2012

(w) Amendment to Amended and Restated 2012 Stock Plan - Incorporated by reference to the Form 10-K Report for the year ended December 31, 2012

(x) First Amendment to 2005 Non-Employee Director Fee Deferral Plan - Incorporated by reference to the Form S-8 filed November 30, 2012

(y) 2013 Non-Employee Director Fee Deferral Plan - Incorporated by reference to the Form 10-K Report for the year ended December 31, 2012

(z) Form of Change of Control Agreement entered into with officers of Eaton Corporation - Incorporated by reference to the Form 10-K Report for the year ended December 31, 2008

(aa) Form of Indemnification Agreement entered into with officers of Eaton Corporation - Incorporated by reference to the Form 10-K Report for the year ended December 31, 2002

(bb) Form of Indemnification Agreement entered into with directors - Incorporated by reference to the Form 10-K Report for the year ended December 31, 2012

(cc) Form of Indemnification Agreement II entered into with directors - Incorporated by reference to the Form 10-K Report for the year ended December 31, 2012

11

(dd) Amended and Restated Executive Strategic Incentive Plan (amended and restated February 27, 2013) - Incorporated by reference to the Form 10-K Report for the year ended December 31, 2012

(ee) Executive Strategic Incentive Plan II (effective January 1, 2001) - Incorporated by reference to the Form 10-K Report for the year ended December 31, 2002

(ff) Amended and Restated Supplemental Executive Strategic Incentive Plan (amended and restated February 27, 2013) - Incorporated by reference to the Form 10-K Report for the year ended December 31, 2012

(gg) Deferred Incentive Compensation Plan (amended and restated effective November 1, 2007) - Incorporated by reference to the Form 10-K Report for the year ended December 31, 2009

(hh) Amended and Restated 1998 Stock Plan - Incorporated by reference to the Form S-8 filed November 30, 2012

(ii) Trust Agreement - Officers and Employees (dated December 6, 1996) - Incorporated by reference to the Form 10-K Report for the year ended December 31, 2002

(jj) Trust Agreement - Non-employee Directors (dated December 6, 1996) - Incorporated by reference to the Form 10-K Report for the year ended December 31, 2002

(kk) Group Replacement Insurance Plan (GRIP) (effective June 1, 1992) - Incorporated by reference to the Form 10-K Report for the year ended December 31, 1992

(ll) Excess Benefits Plan (amended and restated effective January 1, 1989) - Incorporated by reference to the Form 10-K Report for the year ended December 31, 2002

(mm) Amendment to Excess Benefits Plan - Incorporated by reference to the Form 10-K Report for the year ended December 31, 2012

(nn) Supplemental Benefits Plan (amended and restated January 1, 1989) - Incorporated by reference to the Form 10-K Report for the year ended December 31, 2002

(oo) Amendment to Supplemental Benefits Plan - Incorporated by reference to the Form 10-K Report for the year ended December 31, 2012

(pp) Eaton Corporation Board of Directors Policy on Incentive Compensation, Stock Options and Other Equity Grants upon the Restatement of Financial Results - Incorporated by reference to the Form 10-K Report for the year ended December 31, 2007

(qq) Amended and Restated Grantor Trust Agreement for Non-Employee Directors' Deferred Fees Plans - effective January 1, 2010 - Incorporated by reference to the Form 10-K Report for the year ended December 31, 2010

(rr) Amended and Restated Grantor Trust Agreement for Employees' Deferred Compensation Plans - effective January 1, 2010 - Incorporated by reference to the Form 10-K Report for the year ended December 31, 2010

(ss) Eaton Savings Plan 2014 Restatement - Incorporated by reference to the Form 10-K Report for the year ended December 31, 2013

(tt) Eaton Personal Investment Plan 2014 Restatement - Incorporated by reference to the Form 10-K Report for the year ended December 31, 2013

12 Ratio of Earnings to Fixed Charges - Filed in conjunction with this Form 10-K Report *

14 Code of Ethics - Incorporated by reference to the definitive Proxy Statement filed on March 14, 2008

21 Subsidiaries of Eaton Corporation plc - Filed in conjunction with this Form 10-K Report *

23 Consent of Independent Registered Public Accounting Firm - Filed in conjunction with this Form 10-K Report *

24 Power of Attorney - Filed in conjunction with this Form 10-K Report *

31.1 Certification of Principal Executive Officer (Pursuant to the Sarbanes-Oxley Act of 2002, Section 302) - Filed in conjunction with this Form 10-K Report *

31.2 Certification of Principal Financial Officer (Pursuant to the Sarbanes-Oxley Act of 2002, Section 302) - Filed in conjunction with this Form 10-K Report *

32.1 Certification of Principal Executive Officer (Pursuant to the Sarbanes-Oxley Act of 2002, Section 906) - Filed in conjunction with this Form 10-K Report *

12

32.2 Certification of Principal Financial Officer (Pursuant to the Sarbanes-Oxley Act of 2002, Section 906) - Filed in conjunction with this Form 10-K Report *

101.INS XBRL Instance Document *

101.SCH XBRL Taxonomy Extension Schema Document *

101.CAL XBRL Taxonomy Extension Calculation Linkbase Document *

101.DEF XBRL Taxonomy Extension Definition Linkbase Document *

101.LAB XBRL Taxonomy Extension Label Linkbase Document *

101.PRE XBRL Taxonomy Extension Presentation Linkbase Document *

____________

* Submitted electronically herewith.

Attached as Exhibit 101 to this report are the following formatted in XBRL (Extensible Business Reporting Language): (i) Consolidated Statements of Income for the years ended December 31, 2014, 2013 and 2012, (ii) Consolidated Statements of Comprehensive Income for the years ended December 31, 2014, 2013 and 2012 (iii) Consolidated Balance Sheets at December 31, 2014 and 2013, (iv) Consolidated Statements of Cash Flows for the years ended December 31, 2014, 2013 and 2012, (v) Consolidated Statements of Shareholders' Equity for the years ended December 31, 2014, 2013 and 2012 and vi) Notes to Consolidated Financial Statements for the year ended December 31, 2014.

(b) Exhibits

Certain exhibits required by this portion of Item 15 are filed as a separate section of this Form 10-K Report.

13

SIGNATURES

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

			EATON CORPORATION plc
			Registrant
Date:	February 26, 2015	By:	/s/ Richard H. Fearon
			Richard H. Fearon
			(On behalf of the registrant and as Principal Financial Officer)

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

Date: February 26, 2015

Signature	Title
*
Alexander M. Cutler	Principal Executive Officer; Director
*
Ken D. Semelsberger	Principal Accounting Officer
*		*
George S. Barrett	Director	Todd M. Bluedorn	Director
*		*
Christopher M. Connor	Director	Michael J. Critelli	Director
*		*
Charles E. Golden	Director	Linda A. Hill	Director
*		*
Arthur E. Johnson	Director	Ned C. Lautenbach	Director
*		/s/ Gregory R. Page
Deborah L. McCoy	Director	Gregory R. Page	Director
*		*
Sandra Pianalto	Director	Gerald B. Smith	Director

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

14

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

The Board of Directors and Shareholders of Eaton Corporation plc

We have audited the accompanying consolidated balance sheets of Eaton Corporation plc ("the Company") as of December 31, 2014 and 2013, and the related consolidated statements of income, comprehensive income, shareholders' equity and cash flows for each of the three years in the period ended December 31, 2014. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the consolidated financial position of the Company at December 31, 2014 and 2013, and the consolidated results of its operations and its cash flows for each of the three years in the period ended December 31, 2014, in conformity with U.S. generally accepted accounting principles.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the Company's internal control over financial reporting as of December 31, 2014, based on criteria established in Internal Control - Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 Framework) and our report dated February 26, 2015 expressed an unqualified opinion thereon.

/s/ Ernst & Young LLP

Cleveland, Ohio

February 26, 2015

15

MANAGEMENT'S REPORT ON FINANCIAL STATEMENTS

We have prepared the accompanying consolidated financial statements and related information of Eaton Corporation plc ("Eaton") included herein for the three years ended December 31, 2014. The primary responsibility for the integrity of the financial information included in this annual report rests with management. The financial information included in this annual report has been prepared in accordance with accounting principles generally accepted in the United States based on our best estimates and judgments and giving due consideration to materiality. The opinion of Ernst & Young LLP, Eaton's independent registered public accounting firm, on those financial statements is included herein.

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

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

/s/ Alexander M. Cutler	/s/ Richard H. Fearon	/s/ Ken D. Semelsberger
Principal Executive Officer	Principal Financial Officer	Principal Accounting Officer
February 26, 2015

16

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

The Board of Directors and Shareholders of Eaton Corporation plc

We have audited Eaton Corporation plc's ("the Company") internal control over financial reporting as of December 31, 2014, based on criteria established in Internal Control - Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 Framework) (the COSO criteria). The Company's management is responsible for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting included in the accompanying Management's Report on Internal Control Over Financial Reporting. Our responsibility is to express an opinion on the Company's internal control over financial reporting based on our audit.

We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.

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

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

In our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2014, based on the COSO criteria.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the consolidated balance sheets of the Company as of December 31, 2014 and 2013, and the related consolidated statements of income, comprehensive income, shareholders' equity, and cash flows for each of the three years in the period ended December 31, 2014 and our report dated February 26, 2015 expressed an unqualified opinion thereon.

/s/ Ernst & Young LLP

Cleveland, Ohio

February 26, 2015

17

MANAGEMENT'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING

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

Under the supervision and with the participation of Eaton's management, including our principal executive officer and principal financial officer, we conducted an evaluation of the effectiveness of the Company's internal control over financial reporting as of December 31, 2014. In conducting this evaluation, we used the framework set forth by the Committee of Sponsoring Organizations of the Treadway Commission in Internal Control - Integrated Framework (2013 Framework). Based on this evaluation under the framework referred to above, management concluded that the Company's internal control over financial reporting was effective as of December 31, 2014.

The independent registered public accounting firm Ernst & Young LLP has issued an audit report on the effectiveness of the Company's internal control over financial reporting as of December 31, 2014. This report is included herein.

/s/ Alexander M. Cutler	/s/ Richard H. Fearon	/s/ Ken D. Semelsberger
Principal Executive Officer	Principal Financial Officer	Principal Accounting Officer
February 26, 2015

18

EATON CORPORATION plc

CONSOLIDATED STATEMENTS OF INCOME

	Year ended December 31
(In millions except for per share data)	2014			2013			2012
Net sales	$	22,552		$	22,046		$	16,311
Cost of products sold	15,646			15,369			11,448
Selling and administrative expense	3,810			3,886			2,894
Litigation settlements	644			—			—
Research and development expense	647			644			439
Interest expense - net	227			271			208
Other (income) expense - net	(183		)	(8		)	71
Income before income taxes	1,761			1,884			1,251
Income tax (benefit) expense	(42		)	11			31
Net income	1,803			1,873			1,220
Less net income for noncontrolling interests	(10		)	(12		)	(3		)
Net income attributable to Eaton ordinary shareholders	$	1,793		$	1,861		$	1,217
Net income per ordinary share
Diluted	$	3.76		$	3.90		$	3.46
Basic	3.78			3.93			3.54
Weighted-average number of ordinary shares outstanding
Diluted	476.8			476.7			350.9
Basic	474.1			473.5			347.8
Cash dividends declared per ordinary share	$	1.96		$	1.68		$	1.52

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

19

EATON CORPORATION plc

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

	Year ended December 31
(In millions)	2014			2013			2012
Net income	$	1,803		$	1,873		$	1,220
Less net income for noncontrolling interests	(10		)	(12		)	(3		)
Net income attributable to Eaton ordinary shareholders	1,793			1,861			1,217
Other comprehensive (loss) income, net of tax
Currency translation and related hedging instruments	(1,019		)	(28		)	135
Pensions and other postretirement benefits	(315		)	429			(152		)
Cash flow hedges	(5		)	3			17
Other comprehensive (loss) income attributable to Eaton    ordinary shareholders	(1,339		)	404			—
Total comprehensive income attributable to Eaton ordinary shareholders	$	454		$	2,265		$	1,217

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

20

EATON CORPORATION plc

CONSOLIDATED BALANCE SHEETS

	December 31
(In millions)	2014			2013
Assets
Current assets
Cash	$	781		$	915
Short-term investments	245			794
Accounts receivable - net	3,667			3,648
Inventory	2,428			2,382
Deferred income taxes	593			577
Prepaid expenses and other current assets	386			415
Total current assets	8,100			8,731
Property, plant and equipment
Land and buildings	2,343			2,461
Machinery and equipment	5,621			5,504
Gross property, plant and equipment	7,964			7,965
Accumulated depreciation	(4,214		)	(4,132		)
Net property, plant and equipment	3,750			3,833
Other noncurrent assets
Goodwill	13,893			14,495
Other intangible assets	6,556			7,186
Deferred income taxes	228			240
Other assets	1,002			1,006
Total assets	$	33,529		$	35,491
Liabilities and shareholders’ equity
Current liabilities
Short-term debt	$	2		$	13
Current portion of long-term debt	1,008			567
Accounts payable	1,940			1,960
Accrued compensation	420			461
Other current liabilities	1,985			1,913
Total current liabilities	5,355			4,914
Noncurrent liabilities
Long-term debt	8,024			8,969
Pension liabilities	1,812			1,465
Other postretirement benefits liabilities	513			668
Deferred income taxes	901			1,313
Other noncurrent liabilities	1,085			1,299
Total noncurrent liabilities	12,335			13,714
Shareholders’ equity
Ordinary shares (467.9 million outstanding in 2014 and 475.1 million in 2013)	5			5
Capital in excess of par value	11,605			11,483
Retained earnings	7,078			6,866
Accumulated other comprehensive loss	(2,899		)	(1,560		)
Shares held in trust	(3		)	(3		)
Total Eaton shareholders’ equity	15,786			16,791
Noncontrolling interests	53			72
Total equity	15,839			16,863
Total liabilities and equity	$	33,529		$	35,491

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

21

EATON CORPORATION plc

CONSOLIDATED STATEMENTS OF CASH FLOWS

	Year ended December 31
(In millions)	2014			2013			2012
Operating activities
Net income	$	1,803		$	1,873		$	1,220
Adjustments to reconcile to net cash provided by operating activities
Depreciation and amortization	983			997			598
Deferred income taxes	(382		)	(311		)	(155		)
Pension and other postretirement benefits expense	293			384			335
Contributions to pension plans	(362		)	(341		)	(413		)
Contributions to other postretirement benefits plans	(40		)	(59		)	(43		)
Excess tax benefit from equity-based compensation	(20		)	(32		)	(21		)
(Gain) loss on sale of businesses	(68		)	(2		)	1
Changes in working capital
Accounts receivable - net	(205		)	(231		)	108
Inventory	(152		)	(92		)	166
Accounts payable	49			86			(220		)
Accrued compensation	(32		)	—			(52		)
Accrued income and other taxes	(73		)	1			(86		)
Other current assets	73			(42		)	117
Other current liabilities	8			(46		)	30
Other - net	3			100			79
Net cash provided by operating activities	1,878			2,285			1,664
Investing activities
Capital expenditures for property, plant and equipment	(632		)	(614		)	(593		)
Cash received from (paid for) acquisitions of businesses, net of cash acquired	2			(9		)	(6,936		)
Sales (purchases) of short-term investments - net	522			(288		)	603
Proceeds from sales of businesses	282			777			3
Other - net	(31		)	(68		)	(49		)
Net cash provided by (used in) investing activities	143			(202		)	(6,972		)
Financing activities
Proceeds from borrowings	—			9			7,156
Payments on borrowings	(582		)	(1,096		)	(1,324		)
Payments of financing costs	—			—			(117		)
Cash dividends paid	(929		)	(796		)	(512		)
Exercise of employee stock options	54			121			95
(Repurchase) issuance of shares	(650		)	—			159
Excess tax benefit from equity-based compensation	20			32			21
Other - net	(43		)	(6		)	2
Net cash (used in) provided by financing activities	(2,130		)	(1,736		)	5,480
Effect of currency on cash	(25		)	(9		)	20
Total (decrease) increase in cash	(134		)	338			192
Cash at the beginning of the period	915			577			385
Cash at the end of the period	$	781		$	915		$	577

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

22

EATON CORPORATION plc

CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY

	Ordinary shares					Capital in excess of par value			Retained earnings			Accumulated other comprehensive loss			Shares held in trust			Total Eaton shareholders' equity			Noncontrolling interests			Total equity
(In millions)	Shares		Dollars
Balance at January 1, 2012	334.4		$	167		$	4,169		$	5,103		$	(1,964	)	$	(6	)	$	7,469		$	23		$	7,492
Net income	—		—			—			1,217			—			—			1,217			3			1,220
Other comprehensive income (loss),    net of tax												—						—			—			—
Cash dividends paid	—		—			—			(512		)	—			—			(512		)	(3		)	(515		)
Exchange of Eaton Corporation shares    (par value $0.50 per share) for Eaton    shares (par value $0.01 per share)	—		(166		)	166			—			—			—			—			—			—
Issuance of shares under equity-based    compensation plans - net (net of income    tax benefit of $23)	5.0		2			129			(2		)	—			—			129			—			129
Issuance of shares under employee    benefit plans	3.2		—			166			—			—			2			168			—			168
Issuance of shares from acquisition    of business	128.1		2			6,648			(1		)	—			—			6,649			42			6,691
Registration of ordinary shares	—		—			(7		)	—			—			—			(7		)	—			(7		)
Balance at December 31, 2012	470.7		5			11,271			5,805			(1,964		)	(4		)	15,113			65			15,178
Net income	—		—			—			1,861			—			—			1,861			12			1,873
Other comprehensive income, net of tax												404						404			—			404
Cash dividends paid	—		—			—			(796		)	—			—			(796		)	(5		)	(801		)
Issuance of shares under equity-based    compensation plans - net (net of income    tax benefit of $32)	4.4		—			212			(4		)	—			1			209			—			209
Balance at December 31, 2013	475.1		5			11,483			6,866			(1,560		)	(3		)	16,791			72			16,863
Net income	—		—			—			1,793			—			—			1,793			10			1,803
Other comprehensive loss, net of tax												(1,339		)				(1,339		)	—			(1,339		)
Cash dividends paid	—		—			—			(929		)	—			—			(929		)	(5		)	(934		)
Issuance of shares under equity-based    compensation plans - net (net of income    tax benefit of $20)	2.4		—			136			(2		)	—			—			134			—			134
Purchase of additional noncontrolling interest of consolidated subsidiaries	—		—			(14		)	—			—			—			(14		)	(24		)	(38		)
Repurchase of shares	(9.6	)	—			—			(650		)	—			—			(650		)	—			(650		)
Balance at December 31, 2014	467.9		$	5		$	11,605		$	7,078		$	(2,899	)	$	(3	)	$	15,786		$	53		$	15,839

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

23

EATON CORPORATION plc

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

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

Note 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

General Information and Basis of Presentation

Eaton Corporation plc (Eaton or the Company) is a power management company with 2014 net sales of $22.6 billion. The Company provides energy-efficient solutions that help its customers effectively manage electrical, hydraulic and mechanical power more efficiently, safely and sustainably. Eaton has approximately 102,000 employees in over 60 countries and sells products to customers in more than 175 countries.

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

The consolidated financial statements include the accounts of Eaton and all subsidiaries and other entities it controls. Intercompany transactions and balances have been eliminated. The equity method of accounting is used for investments in associate companies where the Company has significant influence and generally a 20% to 50% ownership interest. Equity investments are evaluated for impairment whenever events or circumstances indicate the book value of the investment exceeds fair value. An impairment would exist if there is an other-than-temporary decline in value. These associate companies are not material either individually, or in the aggregate, to Eaton's consolidated financial statements. Eaton does not have off-balance sheet arrangements or financings with unconsolidated entities. In the ordinary course of business, the Company leases certain real properties and equipment, as described in Note 7.

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

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

Revenue Recognition

Sales of products are recognized when a sales agreement is in place, products have been shipped to unaffiliated customers and title has transferred in accordance with shipping terms, the selling price is fixed and determinable and collectability is reasonably assured, all significant related acts of performance have been completed, and no other significant uncertainties exist. Shipping and handling costs billed to customers are included in Net sales and the related costs in Cost of products sold. Although the majority of the sales agreements contain standard terms and conditions, there are agreements that contain multiple elements or non-standard terms and conditions. As a result, judgment is required to determine the appropriate accounting, including whether the deliverables specified in these agreements should be treated as separate units of accounting for recognition purposes, and, if so, how the sales price should be allocated among the elements and when to recognize sales for each element. For delivered elements, sales generally are recognized only when the delivered elements have standalone value and there are no uncertainties regarding customer acceptance. Sales for service contracts generally are recognized as the services are provided.

Eaton records reductions to revenue for customer and distributor incentives, primarily comprised of rebates, at the time of the initial sale. Rebates are estimated based on sales terms, historical experience, trend analysis, and projected market conditions in the various markets served. The rebate programs offered vary across businesses due to the numerous markets Eaton serves, but the most common incentives relate to amounts paid or credited to customers for achieving defined volume levels.

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Goodwill and Indefinite Life Intangible Assets

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

Goodwill impairment testing for 2014 was performed using a qualitative analysis, which is performed by assessing certain trends and factors, including projected market outlook and growth rates, forecasted and actual sales and operating profit margins, discount rates, industry data, and other relevant qualitative factors. These trends and factors are compared to, and based on, the assumptions used in the most recent quantitative assessment. The results of the qualitative analysis did not indicate a need to perform a quantitative analysis.

Goodwill impairment testing for 2013 was performed using a quantitative analysis under which the fair value for each reporting unit was estimated using a discounted cash flow model, which considered forecasted cash flows discounted at an estimated weighted-average cost of capital. The forecasted cash flows were based on the Company's long-term operating plan and a terminal value was used to estimate the operating segment's cash flows beyond the period covered by the operating plan. The weighted-average cost of capital is an estimate of the overall after-tax rate of return required by equity and debt market holders of a business enterprise. These analyses require the exercise of significant judgments, including judgments about appropriate discount rates, perpetual growth rates and the timing of expected future cash flows of the respective reporting unit. Sensitivity analyses were performed in order to assess the reasonableness of the assumptions and the resulting estimated fair values.

For 2014 and 2013, based on a qualitative and quantitative analysis, respectively, the fair values of Eaton's reporting units continue to substantially exceed the respective carrying amounts.

Indefinite life intangible assets consist of trademarks. They are evaluated annually for impairment as of July 1 using either a quantitative or qualitative analysis to determine whether their fair values exceed their respective carrying amounts. Indefinite life intangible asset impairment testing for 2014 and 2013 was performed using a quantitative analysis. The Company determines the fair value of these assets using a royalty relief methodology similar to that employed when the associated assets were acquired, but using updated estimates of future sales, cash flows and profitability. For 2014 and 2013, the fair value of indefinite lived intangible assets substantially exceeded the respective carrying value.

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

Other Long-Lived Assets

Depreciation and amortization for property, plant and equipment, and intangible assets subject to amortization, are generally computed by the straight-line method and included in Cost of products sold, Selling and administrative expense, and Research and development expense, as appropriate. Cost of buildings are depreciated generally over 40 years and machinery and equipment over 3 to 10 years. At December 31, 2014, the weighted-average amortization period for intangible assets subject to amortization was 17 years for patents and technology, primarily as a result of the long life of aircraft platforms; 17 years for customer relationships; and 16 years for trademarks. Software is amortized up to a maximum life of 10 years.

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

Retirement Benefits Plans

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

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Net actuarial gains or losses are amortized to expense on a plan-by-plan basis when they exceed the accounting corridor. The Company’s corridors are set at either 8% or 10%, depending on the plan, of the greater of the plan assets or benefit obligations. Gains or losses outside of the corridor are subject to amortization over an average employee future service period that differs by plan, but is approximately 13 years on a weighted average basis. If most or all of the plan’s participants are no longer actively accruing benefits, the average life expectancy is used.

Warranty Accruals

Product warranty accruals are established at the time the related sale is recognized through a charge to Cost of products sold. Warranty accrual estimates are based primarily on historical warranty claim experience and specific customer contracts. Provisions for warranty accruals are comprised of basic warranties for products sold, as well as accruals for product recalls and other events when they are known and estimable. See Note 7 for additional information about warranty accruals.

Asset Retirement Obligations

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

Income Taxes

Deferred income tax assets and liabilities are determined based on the difference between the financial statement and tax basis of the respective assets and liabilities, using enacted tax rates in effect for the year when the differences are expected to reverse. Deferred income tax assets are recognized for income tax loss carryforwards and income tax credit carryforwards. Judgment is required in determining and evaluating income tax provisions and valuation allowances for deferred income tax assets. Eaton recognizes the income tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by taxing authorities, based on the technical merits of the position. Eaton evaluates and adjusts these accruals based on changing facts and circumstances. Eaton recognizes interest and penalties related to unrecognized income tax benefits in the provision for income tax expense. Penalties on unrecognized income tax benefits have been accrued for jurisdictions where penalties are automatically applied to any deficiency, regardless of the merit of the position. For additional information about income taxes, see Note 8.

Equity-Based Compensation

Eaton recognizes equity-based compensation expense based on the grant date fair value of the award over the period during which an employee is required to provide service in exchange for the award. Participants awarded restricted stock units (RSUs) do not receive dividends; therefore, their fair value is determined by reducing the closing market price of the Company’s ordinary shares on the date of grant by the present value of the estimated dividends had they been paid. The RSUs entitle the holder to receive one ordinary share for each RSU upon vesting, generally over three or four years. The fair value of restricted stock awards (RSAs) is determined based on the closing market price of the Company’s ordinary shares at the date of grant. RSAs are issued and outstanding at the time of grant, but remain subject to forfeiture until vested, generally over three or four years. Stock options are granted with an exercise price equal to the closing market price of Eaton ordinary shares on the date of grant. The fair value of stock options is determined using a Black-Scholes option-pricing model, which incorporates assumptions regarding the expected volatility, the expected option life, the risk-free interest rate, and the expected dividend yield. See Note 10 for additional information about equity-based compensation.

Derivative Financial Instruments and Hedging Activities

Eaton uses derivative financial instruments to manage the exposure to the volatility in raw material costs, currency, and interest rates on certain debt. These instruments are marked to fair value in the accompanying Consolidated Balance Sheets. Changes in the fair value of derivative assets or liabilities (i.e., gains or losses) are recognized depending upon the type of hedging relationship and whether an instrument has been designated as a hedge. For those instruments that qualify for hedge accounting, Eaton designates the hedging instrument, based upon the exposure being hedged, as a cash flow hedge, a fair value hedge, or a hedge of a net investment in a foreign operation. Changes in fair value of these instruments that do not qualify for hedge accounting are recognized immediately in net income. See Note 12 for additional information about hedges and derivative financial instruments.

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Recently Issued Accounting Pronouncement

In May 2014, the Financial Accounting Standards Board issued Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers (ASU 2014-09). This accounting standard supersedes all existing US GAAP revenue recognition guidance. Under ASU 2014-09, a company will recognize revenue when it transfers the control of promised goods or services to customers in an amount that reflects the consideration which the company expects to collect in exchange for those goods or services. ASU 2014-09 will require additional disclosures in the notes to the consolidated financial statements and is effective for annual and interim reporting periods beginning after December 15, 2016. Eaton is evaluating the impact of ASU 2014-09 and an estimate of the impact to the consolidated financial statements cannot be made at this time.

Note 2. ACQUISITIONS AND SALES OF BUSINESSES

In 2012, Eaton acquired businesses for combined purchase prices totaling $13,796. The Consolidated Statements of Income include the results of these businesses from the dates of the transactions or formation.

Cooper Industries plc

On November 30, 2012, Eaton Corporation acquired Cooper Industries plc (Cooper) for a purchase price of $13,192. At the completion of the transaction, the holder of each Cooper common share received from Eaton $39.15 in cash and 0.77479 of an Eaton ordinary share. As a result of the transaction, based on the number of outstanding shares of Eaton Corporation and Cooper as of November 30, 2012, former Eaton Corporation and Cooper shareholders held approximately 73% and 27%, respectively, of Eaton's ordinary shares after giving effect to the acquisition.

Cooper was 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. Cooper had annual sales of $5,409 for 2011. For segment reporting purposes, Cooper has been included in Electrical Products and Electrical Systems and Services business segments. See Note 14 for additional information about business segments.

Fair Value of Consideration Transferred

The total purchase price for the acquisition of Cooper was $13,192, comprised of Eaton share consideration valued at $6,649 and cash consideration for Cooper shares of $6,474 and to settle certain Cooper equity-based compensation plans of $69, as follows:

Cooper shares outstanding as of November 30, 2012	163.6
Cooper shares issued pursuant to conversion of stock options and share units outstanding under    Cooper equity-based compensation plans	1.8
Total Cooper shares and share equivalents prior to transaction	165.4
Exchange ratio per share	0.77479
Total Eaton shares issued	128.1
Weighted-average Eaton Corporation per share price on November 30, 2012	$	51.91
Total value of Eaton shares issued	$	6,649
Total cash consideration paid at $39.15 per Cooper share and share equivalent	6,474
Total cash consideration paid for equity-based compensation plans	69
Total consideration	$	13,192

Purchase Price Allocation

The acquisition of Cooper has been accounted for using the acquisition method of accounting which requires, among other things, the assets acquired and liabilities assumed be recognized at their respective fair values as of the acquisition date. For accounting purposes, Eaton has been treated as the acquirer in the transaction. The process for estimating the fair values of identifiable intangible assets and certain tangible assets and assumed liabilities requires the use of judgment in determining the appropriate assumptions and estimates.

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The purchase price allocation below represents Cooper's opening balance sheet on November 30, 2012, which was initially reported in Eaton's Form 10-K for the year ended December 31, 2012, updated by Exhibit 99.1 of Eaton's current report on Form 8-K filed on September 6, 2013 and subsequently updated in Eaton's Form 10-K for the year ended December 31, 2013. During the measurement period, which ended November 30, 2013, opening balance sheet adjustments were made to finalize Eaton's preliminary fair value estimates related primarily to intangible assets, goodwill, certain property values, contingent liabilities and the related deferred tax impact. Eaton's consolidated balance sheet at December 31, 2012, as presented in the Company's Form 10-K for the year ended December 31, 2013, was adjusted to reflect the final purchase price allocation. The Company did not revise the Consolidated Statement of Income for the year ended December 31, 2013, as any adjustment was considered immaterial.

	November 30, 2012 (as previously reported)			Adjustments			November 30, 2012 (final adjusted)
Working capital accounts (1)	$	2,304		$	(18	)	$	2,286
Prepaid expenses and other current assets	204			69			273
Property, plant and equipment	885			(40		)	845
Investment in Apex Tool Group, LLC	807			(7		)	800
Intangible assets	5,250			119			5,369
Other assets	35			30			65
Debt	(1,221		)	—			(1,221		)
Accounts payable	(519		)	3			(516		)
Other current liabilities	(673		)	(206		)	(879		)
Other noncurrent liabilities	(2,185		)	(177		)	(2,362		)
Total identifiable net assets	4,887			(227		)	4,660
Goodwill	8,305			227			8,532
Total consideration	$	13,192		$	—		$	13,192
(1) Working capital accounts include Cash, Short-term investments, Accounts receivable and Inventory.

Goodwill has been allocated to the Electrical Products and Electrical Systems and Services segments. Goodwill is calculated as the excess of the consideration transferred over the net assets recognized and represents the expected revenue and cost synergies of the combined company and assembled workforce, which are further described above. Goodwill recognized as a result of the acquisition is not deductible for tax purposes. See Note 4 for additional information about goodwill and other intangible assets.

The estimated fair value of Accounts receivable is based on the historical gross contractual amount receivable as of the acquisition date and totals $955.

Contingent liabilities assumed as part of the transaction total $419 and are included in Other current liabilities and Other noncurrent liabilities. These contingent liabilities are related to environmental, legal (including product liability claims) and tax matters. Contingent liabilities are recorded at fair value in purchase accounting, aside from those pertaining to uncertainty in income taxes which are an exception to the fair value basis of accounting. Legal matters, and certain environmental matters that are legal in nature, are recorded at the respective probable and estimable amount.

Actual and Pro Forma Impact

Eaton's Consolidated Financial Statements for the year ended December 31, 2012 include Cooper's results of operations from the date of acquisition on November 30, 2012 through December 31, 2012. Net sales and operating profit attributable to Cooper during this period and included in Eaton's Consolidated Financial Statements for the year ended December 31, 2012 total $470 and $66, respectively.

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The following unaudited pro forma information gives effect to Eaton's acquisition of Cooper as if the acquisition had occurred on January 1, 2012 and Cooper had been included in Eaton's consolidated results of operations for the year ended December 31, 2012.

	2012
Net sales	$	21,792
Net income from continuing operations attributable to Eaton ordinary shareholders	1,695
Diluted earnings per share from continuing operations	$	3.54

The historical consolidated financial information of Eaton and Cooper has been adjusted in the pro forma information to give effect to pro forma events that are (1) directly attributable to the transaction, (2) factually supportable and (3) expected to have a continuing impact on the combined results. For pro forma purposes, the equity in income of Apex Tool Group, LLC has been excluded as this joint venture was sold on February 1, 2013.

Acquisitions and Sales of Other Businesses

In 2012, Eaton acquired other businesses in separate transactions. The Consolidated Statements of Income include the results of these businesses from the dates of the transactions. These transactions, and the related annual sales prior to acquisition, are summarized below:

Acquired businesses	Date of transaction	Business segment	Annual sales
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 additional information about acquisition integration charges and transaction costs related to Eaton's business acquisitions.

Sale of Aerospace Power Distribution Management Solutions and Integrated Cockpit Solutions

On May 9, 2014, Eaton sold the Aerospace Power Distribution Management Solutions and Integrated Cockpit Solutions businesses to Safran for $270, which resulted in a pre-tax gain of $154.

Sale of Apex Tool Group, LLC

In July 2010, Cooper formed a joint venture, named Apex Tool Group, LLC (Apex), with Danaher Corporation (Danaher). On February 1, 2013, Cooper and Danaher sold Apex to Bain Capital for approximately $1.6 billion, subject to post-closing adjustments.

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Note 3. ACQUISITION INTEGRATION AND RESTRUCTURING CHARGES

Acquisition Integration Charges and Transaction Costs

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

	2014		2013		2012
Acquisition integration charges
Electrical Products	$	66	$	44	$	4
Electrical Systems and Services	51		37		13
Hydraulics	12		36		16
Total business segments	129		117		33
Corporate	25		37		11
Total acquisition integration charges	154		154		44
Transaction costs
Corporate	—		8		106
Financing fees	—		1		72
Total transaction costs	—		9		178
Total acquisition integration charges and transaction costs    before income taxes	$	154	$	163	$	222
Total after income taxes	$	102	$	110	$	167
Per ordinary share - diluted	$	0.21	$	0.23	$	0.48

Business segment integration charges in 2014 related primarily to the integration of Cooper. Business segment integration charges in 2013 related primarily to the integrations of Cooper and Polimer Kaucuk Sanayi ve Pazarlama (SEL). Business segment integration charges in 2012 related primarily to the integrations of SEL, Jeil Hydraulics, Cooper, and Internormen Technology Group. 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 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, and 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 and 2012 related to the acquisition of Cooper and were included in Corporate above. These charges were included in Selling and administrative expense, Interest expense - net and Other (income) expense - 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 the fourth quarter of 2012, Eaton undertook restructuring activities to improve the efficiency of certain businesses. These actions resulted in a charge in the fourth quarter of 2012 of $50, comprised of severance costs totaling $34 and other non-cash expenses totaling $16, of which $2, $2, $17, $17, $4 and $8 were recognized in the Electrical Products, Electrical Systems and Services, Vehicle, Hydraulics, and Aerospace business segments and Corporate, respectively.

During 2014 and 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 of $95 during 2014, comprised of severance costs totaling $69 and other expenses totaling $26, of which $53 and $42 were recognized in the Electrical Products and Electrical Systems and Services business segments, respectively. During 2013, these actions, comprised primarily of severance costs, resulted in charges of $36, of which $19 and $17 were recognized in the Electrical Products and Electrical Systems and Services business segments, respectively. These restructuring initiatives are expected to continue through 2015. These charges are included in the table above in acquisition integration charges.

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During 2014, Eaton undertook additional restructuring activities in an effort to gain efficiencies in operations. These actions resulted in charges of $54 during 2014, comprised of severance costs totaling $48 and other expenses totaling $6, of which $32, $16, $2 and $4 were recognized in the Vehicle, Hydraulics and Aerospace business segments, and Corporate, respectively.

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 14 for additional information about business segments. As of December 31, 2014 and 2013, the liabilities related to these restructuring actions totaled $84 and $32, respectively.

Note 4. GOODWILL AND OTHER INTANGIBLE ASSETS

Changes in the carrying amount of goodwill by segment follow:

	Electrical Products			Electrical Systems and Services			Hydraulics			Aerospace			Vehicle			Total
December 31, 2012	$	7,117		$	4,520		$	1,404		$	1,045		$	357		$	14,443
Additions	1			22			4			—			—			27
Translation adjustments	71			(25		)	(23		)	3			(1		)	25
December 31, 2013	7,189			4,517			1,385			1,048			356			14,495
Goodwill written off from    sale of businesses	—			—			—			(78		)	—			(78		)
Translation adjustments	(249		)	(203		)	(58		)	(8		)	(6		)	(524		)
December 31, 2014	$	6,940		$	4,314		$	1,327		$	962		$	350		$	13,893

A summary of other intangible assets follows:

	2014				2013
	Historical cost		Accumulated amortization		Historical cost		Accumulated amortization
Intangible assets not subject to amortization
Trademarks	$	1,844			$	1,868
Intangible assets subject to amortization
Customer relationships	$	3,674	$	834	$	3,859	$	669
Patents and technology	1,494		440		1,588		389
Trademarks	980		250		1,052		215
Other	103		15		103		11
Total intangible assets subject to amortization	$	6,251	$	1,539	$	6,602	$	1,284

Amortization expense related to intangible assets subject to amortization in 2014, and estimated amortization expense for each of the next five years, follows:

2014	$	424
2015	410
2016	397
2017	387
2018	367
2019	360

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Other Intangible Assets Related to the Acquisition of Cooper

The estimated fair values of other intangible assets acquired in the Cooper transaction and included in the table above were determined using an income valuation approach, which requires a forecast of expected future cash flows either through the use of the relief-from-royalty method or the multi-period excess earnings method. The final adjusted estimated fair value, as of November 30, 2012, of these identifiable intangible assets, their estimated useful lives and valuation methodology are as follows:

	Fair value		Useful life	Valuation method
Trade names (indefinite-lived)	$	1,410	N/A	Relief-from-royalty
Trade names	638		3-20	Relief-from-royalty
Customer relationships	2,510		13-18	Multi-period excess earnings
Technology	767		4-20	Relief-from-royalty; Multi-period excess earnings
Contract-based	44		9.5	Relief-from-royalty
	$	5,369

Note 5. DEBT

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

	2014			2013
5.95% notes due 2014	$	—		$	250
Floating rate notes due 2014	—			300
5.45% debentures due 2015	300			300
4.65% notes due 2015	100			100
0.95% senior notes due 2015	600			600
2.375% debentures due 2016	240			240
5.30% notes due 2017 ($150 converted to floating rate by interest rate swap)	250			250
6.10% debentures due 2017	289			289
1.50% senior notes due 2017 ($650 converted to floating rate by interest rate swap)	1,000			1,000
5.60% notes due 2018 ($415 converted to floating rate by interest rate swap)	450			450
4.215% Japanese Yen notes due 2018	84			95
6.95% notes due 2019 ($300 converted to floating rate by interest rate swap)	300			300
3.875% debentures due 2020 ($150 converted to floating rate by interest rate swap)	239			239
3.47% notes due 2021 ($200 converted to floating rate by interest rate swap)	300			300
8.10% debentures due 2022	100			100
2.75% senior notes due 2022 ($1,250 converted to floating rate by interest rate swap)	1,600			1,600
3.68% notes due 2023 ($200 converted to floating rate by interest rate swap)	300			300
6.50% debentures due 2025	145			145
7.65% debentures due 2029 ($50 converted to floating rate by interest rate swap)	200			200
4.00% senior notes due 2032	700			700
5.45% debentures due 2034 ($25 converted to floating rate by interest rate swap)	136			136
5.80% notes due 2037	240			240
4.15% senior notes due 2042	1,000			1,000
5.25% to 12.5% notes (maturities ranging from 2014 to 2035, including $50 converted to    floating rate by interest rate swap)	239			249
Other	220			153
Total long-term debt	9,032			9,536
Less current portion of long-term debt	(1,008		)	(567		)
Long-term debt less current portion	$	8,024		$	8,969

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On October 3, 2014, Eaton refinanced a $500, five-year revolving credit facility and a $750, three-year revolving credit facility with a $500, four-year revolving credit facility that will expire October 3, 2018 and a $750, five-year revolving credit facility that will expire October 3, 2019, respectively. Eaton also maintains a $750, five-year revolving credit facility that will expire June 14, 2017. These refinancings maintain long-term revolving credit facilities at a total of $2,000. The revolving credit facilities are used to support commercial paper borrowings and are fully and unconditionally guaranteed by Eaton and certain of its direct and indirect subsidiaries on an unsubordinated, unsecured basis. There were no borrowings outstanding under Eaton's revolving credit facilities at December 31, 2014 or 2013.

On March 20, 2014 and June 16, 2014, the Company repaid the $250, 5.95% notes due 2014 and the $300, floating rate notes due 2014, respectively.

On November 20, 2012, Eaton issued senior notes totaling $4,900 to finance the cash portion of the acquisition of Cooper. On November 14, 2013, Eaton exchanged these senior notes for senior notes registered under the Securities Act of 1933 (the Senior Notes). The Senior Notes are comprised of five tranches which mature in 2015, 2017, 2022, 2032 and 2042, with interest payable semi-annually at a respective rate of 0.95%, 1.50%, 2.75%, 4.00% and 4.15%. Eaton received proceeds totaling $4,853 from the issuance, net of financing costs and nominal discounts. The Senior Notes are fully and unconditionally guaranteed on an unsubordinated, unsecured basis by Eaton and certain of its direct and indirect subsidiaries. The Senior Notes contain an optional redemption provision by which the Company may make an offer to purchase all or any part of the Senior Notes at a purchase price of the greater of (a) 100% of the principal amount of the respective Senior Notes being redeemed, or (b) the sum of the present values of the respective remaining scheduled payments of principal and interest, discounted to the redemption date on a semi-annual basis, plus basis points ranging from 10 to 25 based on the respective Senior Note tranche. The Senior Notes also contain a change of control provision which requires the Company to make an offer to purchase all or any part of the Senior Notes at a purchase price of 101% of the principal amount plus accrued and unpaid interest. Related capitalized deferred financing fees total $40. The capitalized deferred financing fees and nominal discounts are amortized in Interest expense - net over the respective terms of the Senior Notes. The Senior Notes are subject to customary non-financial covenants. See Note 15 for additional information about the Senior Notes.

On November 30, 2012, the closing date of the acquisition of Cooper, Eaton borrowed $1,669 on a $6.75 billion, 364-day bridge facility (the Facility) which was obtained on May 21, 2012. The Facility was obtained to finance a portion of the cash paid to acquire Cooper and was available in a single draw on the closing date of the acquisition. Related deferred financing fees totaled $69, of which $68 were amortized in Interest expense - net as of December 31, 2012. On February 1, 2013, Eaton repaid the outstanding balance on the Facility.

As is customary to support its U.S. operations, the Company had available lines of credit of $340 from various banks for the issuance of letters of credit, of which there was $155 outstanding at December 31, 2014. Operations outside the United States had available short-term lines of credit of $2,089 from various banks worldwide at December 31, 2014. Borrowings outside the United States are generally denominated in local currencies.

Eaton is in compliance with each of its debt covenants for all periods presented. Eaton Corporation and Cooper each issued guarantees on November 30, 2012 and January 8, 2013, respectively, on all material outstanding debt of the other.

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

2015	$	1,008
2016	242
2017	1,548
2018	570
2019	339

Interest paid on debt follows:

2014	$	296
2013	294
2012	237

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Note 6. RETIREMENT BENEFITS PLANS

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

Obligations and Funded Status

	United States pension liabilities						Non-United States pension liabilities						Other postretirement liabilities
	2014			2013			2014			2013			2014			2013
Funded status
Fair value of plan assets	$	3,086		$	2,940		$	1,535		$	1,432		$	116		$	138
Benefit obligations	(4,047		)	(3,625		)	(2,337		)	(2,127		)	(676		)	(867		)
Funded status	$	(961	)	$	(685	)	$	(802	)	$	(695	)	$	(560	)	$	(729	)
Amounts recognized in the Consolidated    Balance Sheets
Non-current assets	$	14		$	44		$	77		$	86		$	—		$	—
Current liabilities	(16		)	(15		)	(26		)	(30		)	(47		)	(61		)
Non-current liabilities	(959		)	(714		)	(853		)	(751		)	(513		)	(668		)
Total	$	(961	)	$	(685	)	$	(802	)	$	(695	)	$	(560	)	$	(729	)
Amounts recognized in Accumulated other    comprehensive loss (pretax)
Net actuarial loss	$	1,377		$	1,051		$	695		$	515		$	176		$	190
Prior service cost (credit)	5			3			11			13			(86		)	(6		)
Total	$	1,382		$	1,054		$	706		$	528		$	90		$	184

Change in Benefit Obligations

	United States pension liabilities						Non-United States pension liabilities						Other postretirement liabilities
	2014			2013			2014			2013			2014			2013
Balance at January 1	$	3,625		$	3,817		$	2,127		$	2,017		$	867		$	950
Service cost	117			128			66			62			13			20
Interest cost	162			147			85			80			32			35
Actuarial loss (gain)	470			(223		)	355			21			(36		)	(54		)
Gross benefits paid	(329		)	(246		)	(106		)	(90		)	(91		)	(103		)
Currency translation	—			—			(190		)	36			(4		)	(2		)
Plan amendments	2			2			—			4			(84		)	—
Other	—			—			—			(3		)	(21		)	21
Balance at December 31	$	4,047		$	3,625		$	2,337		$	2,127		$	676		$	867
Accumulated benefit obligation	$	3,894		$	3,458		$	2,181		$	2,003

34

Change in Plan Assets

	United States pension liabilities						Non-United States pension liabilities						Other postretirement liabilities
	2014			2013			2014			2013			2014			2013
Balance at January 1	$	2,940		$	2,607		$	1,432		$	1,248		$	138		$	146
Actual return on plan assets	226			383			191			118			4			15
Employer contributions	248			196			114			145			40			59
Gross benefits paid	(329		)	(246		)	(106		)	(90		)	(91		)	(103		)
Currency translation	—			—			(96		)	15			—			—
Other	1			—			—			(4		)	25			21
Balance at December 31	$	3,086		$	2,940		$	1,535		$	1,432		$	116		$	138

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

	United States pension liabilities				Non-United States pension liabilities
	2014		2013		2014		2013
Projected benefit obligation	$	3,557	$	3,166	$	1,524	$	1,411
Accumulated benefit obligation	3,403		2,999		1,446		1,349
Fair value of plan assets	2,581		2,437		673		635

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

	United States pension liabilities						Non-United States pension liabilities						Other postretirement liabilities
	2014			2013			2014			2013			2014			2013
Balance at January 1	$	1,054		$	1,621		$	528		$	559		$	184		$	262
Prior service cost arising during the year	2			2			—			4			(84		)	—
Net loss (gain) arising during the year	490			(381		)	262			(12		)	(34		)	(63		)
Currency translation	—			—			(55		)	6			(1		)	(1		)
Less amounts included in expense during the year	(164		)	(186		)	(29		)	(29		)	25			(14		)
Other	—			(2		)	—			—			—			—
Net change for the year	328			(567		)	178			(31		)	(94		)	(78		)
Balance at December 31	$	1,382		$	1,054		$	706		$	528		$	90		$	184

Benefits Expense

	United States pension benefit expense									Non-United States pension benefit expense									Other postretirement benefits expense
	2014			2013			2012			2014			2013			2012			2014			2013			2012
Service cost	$	117		$	128		$	115		$	66		$	62		$	50		$	13		$	20		$	17
Interest cost	162			147			134			85			80			77			32			35			38
Expected return on plan assets	(246		)	(226		)	(183		)	(98		)	(85		)	(77		)	(6		)	(6		)	(6		)
Amortization	93			133			118			27			27			15			6			14			13
	126			182			184			80			84			65			45			63			62
Settlements, curtailments    and other	71			53			20			2			2			4			(31		)	—			—
Total expense	$	197		$	235		$	204		$	82		$	86		$	69		$	14		$	63		$	62

35

The estimated pretax net amounts that will be recognized from Accumulated other comprehensive loss into net periodic benefit cost in 2015 follow:

	United States pension liabilities		Non-United States pension liabilities		Other postretirement liabilities
Actuarial loss	$	168	$	39	$	15
Prior service cost (credit)	1		1		(14		)
Total	$	169	$	40	$	1

Retirement Benefits Plans Assumptions

For purposes of determining liabilities related to pension plans and other postretirement benefits plans in the United States, the Company updated its mortality assumption in 2014 to use the RP-2014 tables with a generational improvement scale based on MP-2014.

Pension Plans

	United States pension plans						Non-United States pension plans
	2014		2013		2012		2014		2013		2012
Assumptions used to determine benefit obligation at year-end
Discount rate	3.97	%	4.67	%	3.97	%	3.33	%	4.20	%	4.17	%
Rate of compensation increase	3.16	%	3.16	%	3.16	%	3.13	%	3.12	%	3.09	%
Assumptions used to determine expense
Discount rate	4.67	%	3.97	%	4.70	%	4.20	%	4.17	%	5.12	%
Expected long-term return on plan assets	8.40	%	8.45	%	8.50	%	7.00	%	6.92	%	7.10	%
Rate of compensation increase	3.16	%	3.16	%	3.15	%	3.12	%	3.09	%	3.62	%

The expected long-term rate of return on pension assets was determined for each country and reflects long-term historical data taking into account each plan's target asset allocation. The discount rate was determined using appropriate bond data for each country.

Other Postretirement Benefits Plans

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

	Other postretirement benefits plans
	2014		2013		2012
Assumptions used to determine benefit obligation at year-end
Discount rate	3.79	%	4.48	%	3.79	%
Health care cost trend rate assumed for next year	6.31	%	6.64	%	6.96	%
Ultimate health care cost trend rate	4.77	%	4.77	%	4.53	%
Year ultimate health care cost trend rate is achieved	2024		2023		2022
Assumptions used to determine expense
Discount rate	4.48	%	3.79	%	4.60	%
Initial health care cost trend rate	6.64	%	6.96	%	7.60	%
Ultimate health care cost trend rate	4.77	%	4.53	%	4.50	%
Year ultimate health care cost trend rate is achieved	2023		2022		2020

36

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

	1% increase		1% decrease
Effect on total service and interest cost	$	1	$	(1	)
Effect on other postretirement liabilities	20		(18		)

Employer Contributions to Retirement Benefits Plans

Contributions to pension plans that Eaton expects to make in 2015, and made in 2014, 2013 and 2012, follow:

	2015		2014		2013		2012
United States plans	$	217	$	248	$	196	$	311
Non-United States plans	109		114		145		102
Total contributions	$	326	$	362	$	341	$	413

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

	Estimated United States pension payments		Estimated non-United States pension payments		Estimated other postretirement benefit payments
					Gross		Medicare prescription drug subsidy
2015	$	268	$	92	$	75	$	(6	)
2016	281		92		71		(6		)
2017	285		94		67		(6		)
2018	289		98		62		(5		)
2019	297		99		56		(4		)
2020 - 2024	1,544		542		226		(13		)

Pension Plan Assets

Investment policies and strategies are developed on a country specific basis. The United States plans, representing 67% of worldwide pension assets, and the United Kingdom plans representing 27% of worldwide pension assets, are invested primarily for growth, as the majority of the assets are in plans with active participants and ongoing accruals. In general, the plans have their primary allocation to diversified, global equities, primarily through index funds in the form of common collective trusts. The United States plans' target allocation is 32% United States equities, 32% non-United States equities, 8% real estate (primarily equity of real estate investment trusts), 24% debt securities and 4% other, including hedge funds and cash equivalents. The United Kingdom plans' target asset allocations are 57% equities and the remainder in debt securities and real estate investments. The equity risk for the plans is managed through broad geographic diversification and diversification across industries and levels of market capitalization. The majority of debt allocations for these plans are longer duration government and corporate debt. The United States, United Kingdom and Canada pension plans are authorized to use derivatives to achieve more economically desired market exposures and to use futures, swaps and options to gain or hedge exposures.

Other Postretirement Benefits Plan Assets

The Voluntary Employee Benefit Association trust which holds U.S. other postretirement benefits plan assets has investment guidelines that include allocations to global equities and fixed income investments. The trust's target investment allocation is 50% diversified global equities and 50% fixed income securities. The fixed income securities are primarily comprised of intermediate term, high quality, dollar denominated, fixed income instruments. The equity allocation is invested in a diversified global equity index fund in the form of a collective trust.

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Fair Value Measurements

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

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

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

Level 3 - Unobservable prices or inputs.

Pension Plans

A summary of the fair value of pension plan assets at December 31, 2014 and 2013, follows:

	Total		Quoted prices in active markets for identical assets (Level 1)		Other observable inputs (Level 2)		Unobservable inputs (Level 3)
2014
Common collective trusts
Non-United States equity and global equities	$	1,458	$	—	$	1,458	$	—
United States equity	1,005		—		1,005		—
Fixed income	646		—		646		—
Exchange traded funds	138		—		138		—
Fixed income securities	398		—		398		—
United States treasuries	106		106		—		—
Bank loans	128		—		128		—
Real estate securities	263		257		—		6
Equity securities	92		92		—		—
Cash equivalents	218		8		210		—
Hedge funds	54		—		—		54
Exchange traded funds	50		50		—		—
Other	65		—		5		60
Total pension plan assets	$	4,621	$	513	$	3,988	$	120

2013
Common collective trusts
Non-United States equity and global equities	$	1,453	$	—	$	1,453	$	—
United States equity	1,153		—		1,153		—
Fixed income	672		—		672		—
Exchange traded funds	64		—		64		—
Fixed income securities	274		—		274		—
United States treasuries	63		63		—		—
Real estate securities	220		214		—		6
Equity securities	141		141		—		—
Cash equivalents	187		6		181		—
Exchange traded funds	47		47		—		—
Other	98		—		4		94
Total pension plan assets	$	4,372	$	471	$	3,801	$	100

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Other Postretirement Benefits Plans

A summary of the fair value of other postretirement benefits plan assets at December 31, 2014 and 2013, follows:

	Total		Quoted prices in active markets for identical assets (Level 1)		Other observable inputs (Level 2)		Unobservable inputs (Level 3)
2014
Common collective trusts
Global equities	$	54	$	—	$	54	$	—
Fixed income securities	24		—		24		—
United States treasuries	37		37		—		—
Cash equivalents	1		1		—		—
Total other postretirement benefits plan assets	$	116	$	38	$	78	$	—

2013
Common collective trusts
Global equities	$	70	$	—	$	70	$	—
Fixed income securities	29		—		29		—
United States treasuries	38		38		—		—
Cash equivalents	1		1		—		—
Total other postretirement benefits plan assets	$	138	$	39	$	99	$	—

Valuation Methodologies

Following is a description of the valuation methodologies used for pension and other postretirement benefits plan assets measured at fair value. There have been no changes in the methodologies used at December 31, 2014 and 2013.

Common collective trusts - Valued at the net unit value of units held by the trust at year end. The unit value is determined by the total value of fund assets divided by the total number of units of the fund owned. The equity investments in collective trusts are predominantly in index funds for which the underlying securities are actively traded in public markets based upon readily measurable prices.

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

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

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

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

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

Hedge funds - Consists of direct investments in hedge funds through limited partnership interests. Values are based on the estimated fair value of the ownership interest in the investment as determined by the General Partner.

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

39

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

For additional information regarding fair value measurements, see Note 11.

Defined Contribution Plans

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

2014	$	141
2013	121
2012	74

Note 7. COMMITMENTS AND CONTINGENCIES

Legal Contingencies

Eaton is subject to a broad range of claims, administrative and legal proceedings such as lawsuits that relate to contractual allegations, tax audits, patent infringement, personal injuries, antitrust matters, and employment-related matters. Eaton is also subject to asbestos claims from historic products which may have contained asbestos. Historically, significant insurance coverage has been available to cover costs associated with these claims. Although it is not possible to predict with certainty the outcome or cost of these matters, the Company believes they will not have a material adverse effect on the consolidated financial statements.

In December 2010, a Brazilian court held that a judgment obtained by a Brazilian company, Raysul, against another Brazilian company, Saturnia, which was sold by Eaton in 2006, could be enforced against Eaton Ltda. This judgment is based on an alleged violation of an agency agreement between Raysul and Saturnia. At December 31, 2014, the Company has a total accrual of 83 Brazilian Reais related to this matter ($31 based on current exchange rates), comprised of 60 Brazilian Reais recognized in the fourth quarter of 2010 ($23 based on current exchange rates) with an additional 23 Brazilian Reais recognized through December 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 were filed with the Superior Court of Justice in Brasilia and were again denied in 2014. A final appeal to the Superior Court will likely be filed in the first quarter of 2015. 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. On June 23, 2014, Eaton announced it signed a settlement agreement with Meritor in the amount of $500 that resolved the lawsuit and removed the uncertainty of a trial and appeal process. On July 16, 2014, Eaton paid Meritor the $500.

Frisby Corporation, now known as Triumph Actuation Systems, LLC, and other claimants (collectively, Triumph) 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 Triumph regarding improper use of trade secrets and these claims were dismissed by the Hinds County Circuit Court. On June 18, 2014, Eaton announced it signed a settlement agreement with Triumph in the amount of $147.5 that resolved all claims and lawsuits and removed the uncertainty of a trial and appeal process. On July 8, 2014, Eaton paid Triumph the $147.5.

Environmental Contingencies

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

40

Eaton is involved in remedial response and voluntary environmental remediation at a number of sites, including certain of its currently-owned or formerly-owned plants. The Company has also been named a potentially responsible party under the United States federal Superfund law, or the state equivalents thereof, at a number of disposal sites. The Company became involved in these sites as a result of government action or in connection with business acquisitions. At the end of 2014, the Company was involved with a total of 150 sites worldwide, including the Superfund sites mentioned above, with none of these sites being individually significant to the Company.

Remediation activities, generally involving soil and/or groundwater contamination, include pre-cleanup activities such as fact finding and investigation, risk assessment, feasibility study, design and action planning, performance (where actions may range from monitoring, to removal of contaminants, to installation of longer-term remediation systems), and operation and maintenance of a remediation system. The extent of expected remediation activities and costs varies by site. A number of factors affect the cost of environmental remediation, including the number of parties involved at a particular site, the determination of the extent of contamination, the length of time the remediation may require, the complexity of environmental regulations, and the continuing advancement of remediation technology. Taking these factors into account, Eaton has estimated the costs of remediation, which will be paid over a period of years. The Company accrues an amount on an undiscounted basis, consistent with the estimates of these costs when it is probable that a liability has been incurred. Actual results may differ from these estimates. At December 31, 2014 and 2013, the Company had an accrual totaling $140 and $149, respectively, for these costs.

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

Warranty Accruals

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

	2014			2013			2012
Balance at January 1	$	189		$	185		$	158
Provision	125			107			85
Settled	(120		)	(99		)	(84		)
Other	19			(4		)	26
Balance at December 31	$	213		$	189		$	185

At December 31, 2012, amounts related to the acquisition of Cooper included in Other total $24. For additional information about acquisitions of businesses, see Note 2.

Lease Commitments

Eaton leases certain real properties and equipment. A summary of minimum rental commitments at December 31, 2014 under noncancelable operating leases, which expire at various dates and in most cases contain renewal options, for each of the next five years and thereafter in the aggregate, follow:

2015	$	153
2016	115
2017	83
2018	59
2019	34
Thereafter	60
Total noncancelable lease commitments	$	504

A summary of rental expense follows:

2014	$	244
2013	241
2012	199

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Note 8. INCOME TAXES

Eaton Corporation plc is domiciled in Ireland. Income (loss) before income taxes and income tax (benefit) expense are summarized below based on the geographic location of the operation to which such earnings and income taxes are attributable. Certain Eaton operations which are located outside the United States are subject to income tax in both the United States as well as the country in which the operations are located. As a result, income before tax by location and the components of income tax expense by taxing jurisdiction are not directly related. For purposes of this note, Puerto Rico is classified in Foreign - other since Puerto Rico is not part of the United States corporate tax system.

	Income (loss) before income taxes
	2014			2013		2012
Ireland	$	(332	)	$	184	$	—
Foreign	2,093			1,700		1,251
Total income before income taxes	$	1,761		$	1,884	$	1,251

	Income tax (benefit) expense
	2014			2013			2012
Current
Ireland	$	(13	)	$	17		$	—
United States
Federal	87			89			1
State and local	41			7			5
Foreign - other	239			244			130
Total current income tax expense	354			357			136
Deferred
Ireland	2			—			—
United States
Federal	(224		)	(295		)	39
State and local	(49		)	(23		)	2
Foreign - other	(125		)	(28		)	(146		)
Total deferred income tax benefit	(396		)	(346		)	(105		)
Total income tax (benefit) expense	$	(42	)	$	11		$	31

42

Reconciliations of income taxes from the Ireland national statutory rate of 25% in 2014 and 2013, and the United States federal statutory rate of 35% in 2012, to the consolidated effective income tax rate follow:

	2014		2013		2012
Income taxes at the applicable statutory rate	25.0	%	25.0	%	35.0	%
Ireland operations
Ireland tax on trading income	(0.1	)%	(1.4	)%	—	%
Nondeductible interest expense	4.8	%	—	%	—	%
United States operations
United States (loss) income	(2.8	)%	(2.8	)%	—	%
Nondeductible goodwill - Aerospace divestitures	1.4	%	—	%	—	%
Credit for research activities	(1.0	)%	(2.0	)%	—	%
Other - net	1.5	%	1.3	%	1.8	%
Other foreign operations
United States foreign tax credit	(1.1	)%	(1.8	)%	(12.4	)%
Other foreign operations (earnings taxed at other than    the applicable statutory tax rate)	(24.8	)%	(17.6	)%	(14.9	)%
Other foreign operations - other items	(1.0	)%	0.2	%	—	%
Worldwide operations
Adjustments to tax liabilities	(1.7	)%	(1.1	)%	(5.7	)%
Adjustments to valuation allowances	(2.6	)%	0.8	%	(1.3	)%
Effective income tax (benefit) expense rate	(2.4	)%	0.6	%	2.5	%

During 2014, an income tax benefit of $42 was recognized (an effective tax benefit rate of 2.4%) compared to income tax expense of $11 for 2013 (an effective tax expense rate of 0.6%) and $31 for 2012 (an effective tax expense rate of 2.5%). The lower tax rate in 2014 was primarily attributable to the net tax benefit of 7.6% for the Meritor and Triumph litigation settlements and related legal costs and the gain on the sale of the Aerospace businesses, all of which occurred in the second quarter of 2014. Excluding the previously mentioned litigation settlements and gain on the sale of businesses, the 2014 income tax rate increased from 2013 due to greater levels of income in higher tax jurisdictions and net increases in worldwide tax liabilities, partially offset by additional foreign tax credit recognition in the United States and recognition of deferred tax assets in foreign jurisdictions. The lower effective tax rate for 2013, compared to 2012, was primarily attributable to the effects associated with the acquisition of Cooper, along with greater levels of income in lower tax jurisdictions, additional foreign tax credit utilization, and the benefit of two years of the U.S. research and experimentation tax credit due to the extension of the credit in the American Taxpayer Relief Act of 2012 (the Act) as signed into law in January 2013. The Act extended certain tax benefits retroactively to January 1, 2012.

See Note 7 and Note 2 and for additional information about litigation settlements and sales of businesses, respectively.

No provision has been made for income taxes on undistributed earnings of foreign subsidiaries of approximately $12.5 billion at December 31, 2014, since it is the Company's intention to indefinitely reinvest undistributed earnings of its foreign subsidiaries. It is not practicable to estimate the additional income taxes and applicable withholding taxes that would be payable on the remittance of such undistributed earnings.

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The Company expects to deploy capital to those markets which offer particularly attractive growth opportunities. Given expected population growth and economic growth rates, most of the particularly attractive markets are outside of the United States. The cash that is permanently reinvested is typically used to expand these operations either organically or through acquisitions. Beginning in 2013, the Company's public dividends are funded by the Ireland parent primarily from Non-U.S. operations. The Company's United States operations are expected to generate cash flow sufficient to satisfy United States operating requirements and service its debt.

Worldwide income tax payments follow:

2014	$	258
2013	272
2012	254

Deferred Income Tax Assets and Liabilities

Components of current and long-term deferred income taxes follow:

	2014						2013
	Current assets and liabilities			Long-term assets and liabilities			Current assets and liabilities			Long-term assets and liabilities
Accruals and other adjustments
Employee benefits	$	148		$	773		$	116		$	657
Depreciation and amortization	—			(2,010		)	(2		)	(2,294		)
Other accruals and adjustments	476			282			497			368
United States federal income tax loss carryforwards	—			58			—			—
United States federal income tax credit carryforwards	—			150			—			161
United States state and local tax loss carryforwards and    tax credit carryforwards	—			76			—			73
Other foreign tax loss carryforwards	—			2,112			—			1,708
Other foreign income tax credit carryforwards	—			49			—			63
Valuation allowance for income tax loss and income tax    credit carryforwards	(24		)	(2,134		)	—			(1,738		)
Other valuation allowances	(7		)	(29		)	(34		)	(71		)
Total deferred income taxes	$	593		$	(673	)	$	577		$	(1,073	)

In July 2013, the FASB issued Accounting Standards Update No. 2013-11, Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Loss, or a Tax Credit Carryforward Exists (ASU 2013-11). ASU 2013-11 requires the netting of unrecognized tax benefits against a deferred tax asset for a loss or other carryforward that would apply in settlement of the uncertain tax positions except where the deferred tax asset or other carryforward are not available for use. The adoption of this standard resulted in a reduction of the Company’s consolidated long term deferred tax assets by $146 in 2014.

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At the end of 2014, United States federal income tax loss carryforwards and income tax credit carryforwards are available to reduce future United States federal income tax liabilities. These carryforwards and their respective expiration dates are summarized below:

	2015 through 2019		2020 through 2024		2025 through 2029		2030 through 2034		2035 through 2039		Not subject to expiration		Valuation allowance
United States federal income tax loss    carryforwards	$	—	$	—	$	31	$	4	$	352	$	—	$	—
United States federal deferred income tax    assets for income tax loss carryforwards	—		—		11		1		101		—		(12		)
United States federal deferred income tax    assets for income tax loss carryforwards    after ASU 2013-11	—		—		11		1		46		—		(12		)
United States federal income tax credit    carryforwards	—		64		38		86		21		32		(69		)
United States federal income tax credit    carryforwards after ASU 2013-11	—		64		37		28		21		—		(69		)

United States state and local tax loss carryforwards and tax credit carryforwards with a future tax benefit are also available at the end of 2014. The deferred tax assets for these carryforwards and their respective expiration dates are summarized below:

	2015 through 2019		2020 through 2024		2025 through 2029		2030 through 2034		2035 through 2039		Not subject to expiration		Valuation allowance
United States state and local deferred    income tax assets for income tax loss    carryforwards - net of federal tax effect	$	6	$	18	$	12	$	8	$	—	$	—	$	(18	)
United States state and local income tax    credit carryforwards - net of federal    tax effect	10		9		6		2		5		—		(18		)

At December 31, 2014, certain non-United States subsidiaries had tax loss carryforwards and income tax credit carryforwards that are available to offset future taxable income. These carryforwards and their respective expiration dates are summarized below:

	2015 through 2019		2020 through 2024		2025 through 2029		2030 through 2034		Not subject to expiration		Valuation allowance
Non-United States income tax loss carryforwards	$	135	$	165	$	38	$	18	$	9,290	$	—
Non-United States deferred income tax assets for    income tax loss carryforwards	35		41		9		5		2,022		(2,033		)
Non-United States income tax credit carryforwards	3		14		24		—		7		(8		)

Recoverability of Deferred Income Tax Assets

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

45

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

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

Unrecognized Income Tax Benefits

A summary of gross unrecognized income tax benefits follows:

	2014			2013			2012
Balance at January 1	$	479		$	444		$	236
Increases and decreases as a result of positions taken during prior years
Transfers from valuation allowances	(3		)	13			—
Other increases	37			7			1
Other decreases, including currency translation	(3		)	(7		)	—
Balances related to acquired businesses	(3		)	2			177
Increases as a result of positions taken during the current year	65			35			36
Decreases relating to settlements with tax authorities	(51		)	(6		)	—
Decreases as a result of a lapse of the applicable statute of limitations	(28		)	(9		)	(6		)
Balance at December 31	$	493		$	479		$	444

Eaton's long-term policy has been to enter into tax planning strategies only if it is more likely than not that the benefit would be sustained upon audit. For example, the Company does not enter into any of the United States Internal Revenue Service (IRS) Listed Transactions as set forth in Treasury Regulation 1.6011-4.

If all unrecognized tax benefits were recognized, the net impact on the provision for income tax expense would be $371.

As of December 31, 2014 and 2013, Eaton had accrued approximately $120 and $114, respectively, for the payment of worldwide interest and penalties, which are not included in the table of unrecognized income tax benefits above. Eaton recognizes interest and penalties related to unrecognized income tax benefits in the provision for income tax expense. The Company has accrued penalties in jurisdictions where they are automatically applied to any deficiency, regardless of the merit of the position.

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

Eaton or its subsidiaries file income tax returns in Ireland and many countries around the world. The IRS has completed its examination of Eaton Corporation and Includible Subsidiaries United States income tax returns for 2007 through 2010 and has issued a Statutory Notice of Deficiency (Notice) as discussed below. The statute of limitations on these tax years remains open to the extent of the tax assessment until the matter is resolved. Tax years 2011 through 2014 are still subject to examination by the IRS.

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With respect to the pre-acquisition years of BZ Holdings Inc. and Subsidiaries (the former U.S. holding company for Cooper Industries), the IRS examination of the United States income tax returns for 2010, 2011, and the period ended December 21, 2012 was completed and settled without significant effect on the consolidated financial statements. The statute of limitations remains open for tax years 2010 and 2011 until September 15, 2015. The statute of limitations on the final return period ended December 21, 2012 remains open until September 15, 2016. On December 22, 2012, BZ Holdings Inc. and Subsidiaries joined the Eaton Corporation and Includible Subsidiaries consolidated United States income tax return for 2012.

Eaton is also under examination for the income tax filings in various states of the United States and in many other foreign jurisdictions. With only a few exceptions, Eaton Corporation and Includible Subsidiaries are no longer subject to income tax examinations from states and localities within the United States for years before 2010. Income tax returns of states and localities within the United States will be reopened to the extent of United States federal income tax adjustments, if any, going back to 2005 when those audit years are finalized. Some states and localities may not limit their assessment to the United States federal adjustments, and may require the opening of the entire tax year. In addition, with only a few exceptions, Cooper Industries and Includible Subsidiaries are no longer subject to United States state and local income tax examinations for years before 2010. With only a few exceptions, the other foreign subsidiaries of both Eaton and Cooper are no longer subject to examinations for years before 2009.

At the end of the fourth quarter of 2011, the IRS issued a Notice for Eaton Corporation and Includible Subsidiaries 2005 and 2006 tax years (the 2011 Notice). The Notice proposed assessments of $75 in additional taxes plus $52 in penalties related primarily to transfer pricing adjustments for products manufactured in the Company's facilities in Puerto Rico and the Dominican Republic and sold to affiliated companies located in the U.S., net of agreed credits and deductions. The Company has set its transfer prices for products sold between these affiliates at the same prices that the Company sells such products to third parties as required by two successive Advance Pricing Agreements (APAs) the Company entered into with the IRS. For the years 2001 through 2004, the IRS had previously accepted the transfer pricing methodology related to these APAs after a comprehensive review conducted in two separate audit cycles. On December 16, 2011, immediately prior to the 2011 Notice being issued, the IRS sent a letter stating that it was retrospectively canceling the APAs, even though their respective APA terms had already expired.

The Company is contesting the proposed assessments. The Company believes that it was in full compliance with the terms of the two APAs, and that the IRS's cancellation of these two APAs is without merit. On February 29, 2012, the Company filed a Petition with the U.S. Tax Court in which it asserted that the transfer pricing established in the APAs meets the arms-length standard set by the U.S. income tax laws, and accordingly, that the APAs should be enforced in accordance with their terms. The case involves both whether the APAs should be enforced and, if not, the appropriate transfer pricing methodology. The U.S. Tax Court has established that the trial for this matter will begin in June 2015.

During the third quarter of 2014, the Company received a Notice from the IRS for the 2007 through 2010 tax years (the 2014 Notice) proposing assessments of $190 in additional taxes plus $72 in penalties, net of agreed credits and deductions. The proposed assessments pertain primarily to the same transfer pricing issues that are currently in litigation for the 2011 Notice, as noted above. During 2007 through 2010, the Company set its transfer prices for products sold between these affiliates consistent with the terms of a written APA between it and the IRS that covered the years at issue. To establish the relevant transfer prices, the APA relied on prices at which the Company sells the products to third parties. The 2014 Notice includes a separate proposed assessment involving the recognition of income for several of the Company’s controlled foreign corporations. The Company believes that these proposed assessments are without merit. On November 25, 2014, the Company filed a Petition with the U.S. Tax Court in which it challenged the IRS's adjustments. The Company expects the outcome of the 2014 Notice on the transfer pricing matter to be determined by the judicial decision related to the 2011 Notice. The Company has continued to apply the arms-length transfer pricing methodology for 2011 through 2014.

Also during the third quarter of 2014, the Company resolved an uncertain tax position with a European government. The resolution had minimal impact on the Company's Consolidated Statements of Income.

During 2010, the Company received a tax assessment of $64, plus interest and penalties, in Brazil for the tax years 2005 through 2008 that relates to the amortization of certain goodwill generated from the acquisition of third-party businesses and corporate reorganizations. The Company is contesting the assessment, which is under review at the second of three administrative appeals levels. During 2013, the Brazilian tax authorities began an audit of tax years 2009 through 2012. During the third quarter of 2014, the Company received a tax assessment of $50, plus interest and penalties, for the 2009 through 2012 tax years (primarily relating to the same issues concerning the 2005 through 2008 tax years), which the Company is also contesting and is under review in the administrative appeals process. Multiple outside advisors have stated that Brazilian tax authorities are raising the issue for most clients with similar facts and that the matter is expected to require at least 10 years to resolve. The Company continues to believe that final resolution of the assessments will not have a material impact on its consolidated financial statements.

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Note 9. EATON SHAREHOLDERS' EQUITY

There are 750 million Eaton ordinary shares authorized ($0.01 par value per share), 467.9 million and 475.1 million of which were issued and outstanding at December 31, 2014 and 2013, respectively. Eaton's Memorandum and Articles of Association authorized 40 thousand deferred ordinary shares (€1.00 par value per share) and 10 thousand preferred A shares ($1.00 par value per share), all of which were issued and outstanding at December 31, 2014 and 2013, and 10 million serial preferred shares ($0.01 par value per share), none of which is outstanding at December 31, 2014 and 2013. At December 31, 2014, there were 18,993 holders of record of Eaton ordinary shares. Additionally, 26,059 current and former employees were shareholders through participation in the Eaton Savings Plan, Eaton Personal Investment Plan, Eaton Puerto Rico Retirement Savings Plan, and the Cooper Retirement Savings and Stock Ownership Plan.

On September 28, 2011, Eaton Corporation's Board of Directors adopted a common share repurchase program (2011 Program) which authorized the purchase of up to 20 million common shares, not to exceed an aggregate purchase price of $1.25 billion. During 2012, no common shares were repurchased under the 2011 Program. On April 24, 2013, the Company's shareholders authorized the Board of Directors to adopt an ordinary share repurchase program (2013 Program) for up to 40 million ordinary shares at prices between 70% and 120% of the closing price of Eaton's ordinary shares on the day of purchase. On October 22, 2013, Eaton's Board of Directors adopted the 2013 Program. The ordinary shares are expected to be repurchased over time, depending on market conditions, the market price of ordinary shares, capital levels, and other considerations. During 2014, 9.6 million ordinary shares were repurchased under the 2013 Program in the open market at a total cost of $650. During 2013, no ordinary shares were repurchased under the 2013 Program.

Eaton has deferral plans that permit certain employees and directors to defer a portion of their compensation. A trust contains $19 and $24 of ordinary shares and marketable securities, as valued at December 31, 2014 and 2013, respectively, to fund a portion of these liabilities. The marketable securities were included in Other assets and the ordinary shares were included in Shareholders' equity at historical cost.

On February 25, 2015, Eaton's Board of Directors declared a quarterly dividend of $0.55 per ordinary share, payable on March 20, 2015, to shareholders of record at the close of business on March 9, 2015.

Comprehensive Income (Loss)

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

	2014						2013						2012
	Pre-tax			After-tax			Pre-tax			After-tax			Pre-tax			After-tax
Currency translation and related hedging instruments	$	(1,014	)	$	(1,019	)	$	(30	)	$	(28	)	$	144		$	135
Pensions and other postretirement benefits
Prior service credit (cost) arising during the year	82			51			(6		)	(4		)	(1		)	(1		)
Net (loss) gain arising during the year	(718		)	(519		)	456			277			(386		)	(262		)
Currency translation	56			47			(5		)	(4		)	(15		)	(12		)
Other	—			(4		)	2			16			(2		)	15
Amortization of actuarial loss and prior service cost    reclassified to earnings	168			110			229			144			170			108
	(412		)	(315		)	676			429			(234		)	(152		)
Cash flow hedges
(Loss) gain on derivatives designated as cash flow hedges	(3		)	(2		)	6			3			10			10
Changes in cash flow hedges reclassified to earnings	(5		)	(3		)	—			—			7			7
Cash flow hedges, net of reclassification adjustments	(8		)	(5		)	6			3			17			17
Other comprehensive (loss) income attributable to Eaton    ordinary shareholders	$	(1,434	)	$	(1,339	)	$	652		$	404		$	(73	)	$	—

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The changes in Accumulated other comprehensive loss follow:

	Currency translation and related hedging instruments			Pensions and other postretirement benefits			Cash flow hedges			Total
Balance at December 31, 2013	$	(395	)	$	(1,170	)	$	5		$	(1,560	)
Other comprehensive loss before     reclassifications	(1,019		)	(425		)	(2		)	(1,446		)
Amounts reclassified from Accumulated other    comprehensive loss	—			110			(3		)	107
Net current-period Other comprehensive    loss	(1,019		)	(315		)	(5		)	(1,339		)
Balance at December 31, 2014	$	(1,414	)	$	(1,485	)	$	—		$	(2,899	)

The reclassifications out of Accumulated other comprehensive loss follow:

	December 31, 2014			Consolidated Statements of Income classification
Amortization of defined benefit pension and other    postretirement benefits items
Actuarial loss and prior service cost	$	(168	)	1
Tax benefit	58
Total, net of tax	(110		)
Gains and losses on cash flow hedges
Floating-to-fixed interest rate swaps	(1		)	Interest expense - net
Currency exchange contracts	6			Cost of products sold
	5
Tax expense	(2		)
Total, net of tax	3
Total reclassifications for the period	$	(107	)

¹ These components of Accumulated other comprehensive loss are included in the computation of net periodic benefit cost. See Note 6 for additional information about defined benefit pension and other postretirement benefits items.

Net Income per Ordinary Share

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

(Shares in millions)	2014		2013		2012
Net income attributable to Eaton ordinary shareholders	$	1,793	$	1,861	$	1,217
Weighted-average number of ordinary shares outstanding - diluted	476.8		476.7		350.9
Less dilutive effect of equity-based compensation	2.7		3.2		3.1
Weighted-average number of ordinary shares outstanding - basic	474.1		473.5		347.8
Net income per ordinary share
Diluted	$	3.76	$	3.90	$	3.46
Basic	3.78		3.93		3.54

In 2014, 2013, and 2012, 0.5 million, 0.2 million, and 2.2 million stock options, respectively, 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 10. EQUITY-BASED COMPENSATION

Restricted Stock Units and Awards

Restricted stock units (RSUs) and restricted stock awards (RSAs) have been issued to certain employees and directors. Participants awarded RSUs do not receive dividends; therefore, the fair value is determined by reducing the closing market price of the Company’s ordinary shares on the date of grant by the present value of the estimated dividends had they been paid. The RSUs entitle the holder to receive one ordinary share for each RSU upon vesting, generally over three or four years. The fair value of RSAs is determined based on the closing market price of the Company’s ordinary shares at the date of grant. RSAs are issued and outstanding at the time of grant, but remain subject to forfeiture until vested, generally over three or four years. A summary of the RSU and RSA activity for 2014 follows:

(Restricted stock units and awards in millions)	Number of restricted stock units and awards		Weighted-average fair value per unit and award
Non-vested at January 1	3.4		$	51.37
Granted	1.0		71.54
Vested	(1.4	)	47.69
Forfeited	(0.2	)	59.01
Non-vested at December 31	2.8		$	60.11

Information related to RSUs and RSAs follows:

	2014		2013		2012
Pretax expense for RSUs and RSAs	$	81	$	69	$	46
After-tax expense for RSUs and RSAs	53		45		30
Fair value of vested RSUs and RSAs	105		82		126

As of December 31, 2014, total compensation expense not yet recognized related to non-vested RSUs and RSAs was $93.9, and the weighted-average period in which the expense is expected to be recognized is 2.3 years. Excess tax benefit for equity-based compensation totaled $5, $10, and $18 for 2014, 2013 and 2012, respectively.

Stock Options

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

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

	2014			2013			2012
Expected volatility	34		%	36		%	35		%
Expected option life in years	5.5			5.5			5.5
Expected dividend yield	2.4		%	2.0		%	2.0		%
Risk-free interest rate	1.7 to 1.5%			1.5 to 0.8%			1.0 to 0.9%
Weighted-average fair value of stock options granted	$	19.46		$	17.49		$	14.08

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A summary of stock option activity follows:

(Options in millions)	Weighted-average exercise price per option		Options		Weighted-average remaining contractual life in years	Aggregate intrinsic value
Outstanding at January 1, 2014	$	43.43	7.9
Granted	75.25		0.6
Exercised	37.75		(1.5	)
Forfeited and canceled	59.33		—
Outstanding at December 31, 2014	$	47.30	7.0		4.3	$	148.9
Exercisable at December 31, 2014	$	42.74	5.7		3.3	$	142.7
Reserved for future grants at December 31, 2014			14.3

The aggregate intrinsic value in the table above represents the total excess of the $67.96 closing price of Eaton ordinary shares on the last trading day of 2014 over the exercise price of the stock option, multiplied by the related number of options outstanding and exercisable. The aggregate intrinsic value is not recognized for financial accounting purposes and the value changes based on the daily changes in the fair market value of the Company's ordinary shares.

Information related to stock options follows:

	2014		2013		2012
Pretax expense for stock options	$	12	$	11	$	7
After-tax expense for stock options	8		7		5
Proceeds from stock options exercised	54		121		95
Income tax benefit related to stock options exercised
Tax benefit classified in operating activities in the Consolidated    Statements of Cash Flows	4		3		5
Excess tax benefit classified in financing activities in the    Consolidated Statements of Cash Flows	15		22		13
Intrinsic value of stock options exercised	55		102		60
Total fair value of stock options vesting	$	12	$	11	$	7
Stock options exercised, in millions of options	1.501		3.565		3.099

As of December 31, 2014, total compensation expense not yet recognized related to non-vested stock options was $14, and the weighted-average period in which the expense is expected to be recognized is 1.8 years.

Note 11. 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.

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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)
2014
Cash	$	781		$	781	$	—		$	—
Short-term investments	245			245		—			—
Net derivative contracts	70			—		70			—
Long-term debt converted to floating interest rates by    interest rate swaps - net	(74		)	—		(74		)	—
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 $9,032 and fair value of $9,509 at December 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.

Short-Term Investments

Eaton invests excess cash generated from operations in short-term marketable investments. For those investments classified as “available-for-sale”, Eaton marks these investments to fair value with the offset recognized in Accumulated other comprehensive loss. A summary of the carrying value of short-term investments follows:

	2014		2013
Time deposits, certificates of deposit and demand deposits with banks	$	113	$	279
Money market investments	131		512
Other	1		3
Total short-term investments	$	245	$	794

Note 12. 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 Consolidated Balance Sheets. Accounting for the gain or loss resulting from the change in the fair value of the derivative financial instrument depends on whether it has been designated, and is effective, as part of a hedging relationship and, if so, as to the nature of the hedging activity. Eaton formally documents all relationships between derivative financial instruments accounted for as designated hedges and the hedged item, as well as its risk-management objective and strategy for undertaking the hedge transaction. This process includes linking derivative financial instruments to a recognized asset or liability, specific firm commitment, forecasted transaction, or net investment in a foreign operation. These financial instruments can be designated as:

• Hedges of the change in the fair value of a recognized fixed-rate asset or liability, or the firm commitment to acquire such an asset or liability (a fair value hedge); for these hedges, the gain or loss from the derivative financial instrument, as well as the offsetting loss or gain on the hedged item attributable to the hedged risk, are recognized in income during the period of change in fair value.

• Hedges of the variable cash flows of a recognized variable-rate asset or liability, or the forecasted acquisition of such an asset or liability (a cash flow hedge); for these hedges, the effective portion of the gain or loss from the derivative financial instrument is recognized in Accumulated other comprehensive loss and reclassified to income in the same period when the gain or loss on the hedged item is included in income.

• Hedges of the currency exposure related to a net investment in a foreign operation (a net investment hedge); for these hedges, the effective portion of the gain or loss from the derivative financial instrument is recognized in Accumulated other comprehensive loss and reclassified to income in the same period when the gain or loss related to the net investment in the foreign operation is included in income.

The gain or loss from a derivative financial instrument designated as a hedge that is effective is classified in the same line of the Consolidated Statements of Income as the offsetting loss or gain on the hedged item. The change in fair value of a derivative financial instrument that is not effective as a hedge is immediately recognized in income.

For derivatives that are not designated as a hedge, any gain or loss is immediately recognized in income. The majority of derivatives used in this manner relate to risks resulting from assets or liabilities denominated in a foreign currency and certain commodity contracts that arise in the normal course of business. Gains and losses associated with commodity hedge contracts are classified in Cost of products sold.

Eaton uses certain of its debt denominated in foreign currency to hedge portions of its net investments in foreign operations against foreign currency exposure (net investment hedges). Foreign currency denominated debt designated on an after-tax basis as non-derivative net investment hedging instruments was $84 and $95 at December 31, 2014 and 2013, respectively. See Note 5 for additional information about debt.

Interest Rate Risk

Eaton has entered into fixed-to-floating interest rate swaps to manage interest rate risk of certain long-term debt. These interest rate swaps are accounted for as fair value hedges of certain long-term debt. The maturity of the swap corresponds with the maturity of the debt instrument as noted in the table of long-term debt in Note 5.

A summary of interest rate swaps outstanding at December 31, 2014, follows:

Fixed-to-Floating Interest Rate Swaps

Notional amount	Fixed interest rate received	Floating interest rate paid	Basis for contracted floating interest rate paid
150	5.30%	4.42%	1 month LIBOR + 4.26%
650	1.50%	0.59%	1 month LIBOR + 0.43%
415	5.60%	3.51%	6 month LIBOR + 3.18%
300	6.95%	5.30%	3 month LIBOR + 5.07%
25	8.875%	4.18%	6 month LIBOR + 3.84%
150	3.875%	2.28%	1 month LIBOR + 2.12%
200	3.47%	1.85%	1 month LIBOR + 1.69%
1,250	2.75%	0.67%	1 month LIBOR + 0.52%
200	3.68%	1.23%	1 month LIBOR + 1.07%
25	7.625%	2.81%	6 month LIBOR + 2.48%
50	7.65%	2.89%	6 month LIBOR + 2.57%
25	5.45%	0.60%	6 month LIBOR + 0.28%

53

Derivative Financial Statement Impacts

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

	Notional amount		Other  current assets		Other noncurrent assets		Other current liabilities		Other noncurrent liabilities		Type of hedge	Term
December 31, 2014
Derivatives designated as hedges
Fixed-to-floating interest rate swaps	$	3,440	$	—	$	84	$	—	$	10	Fair value	2 to 19 years
Currency exchange contracts	432		8		1		5		3		Cash flow	1 to 36 months
Commodity contracts	1		—		—		—		—		Cash flow	1 to 12 months
Total			$	8	$	85	$	5	$	13
Derivatives not designated as hedges
Currency exchange contracts	$	4,447	$	47			$	52				1 to 12 months
Total			$	47			$	52

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
Total			$	22			$	26

The currency exchange contracts shown in the table above as derivatives not designated as hedges are primarily contracts entered into to manage currency volatility or exposure on intercompany sales and loans. While Eaton does not elect hedge accounting treatment for these derivatives, Eaton targets managing 100% of the intercompany balance sheet exposure to minimize the effect of currency volatility related to the movement of goods and services in the normal course of its operations. This activity represents the great majority of these currency exchange contracts.

The impact of derivative instruments to the Consolidated Statements of Income and Comprehensive Income follow:

	Gain (loss) recognized in other comprehensive (loss) income					Location of gain (loss) reclassified from Accumulated other comprehensive loss	Gain (loss) reclassified from Accumulated other comprehensive loss
	2014			2013			2014			2013
Derivatives designated as cash flow hedges
Floating-to-fixed interest rate swaps	$	—		$	—	Interest expense - net	$	(1	)	$	(1	)
Currency exchange contracts	(3		)	6		Cost of products sold	6			2
Commodity contracts	—			—		Cost of products sold	—			(1		)
Total	$	(3	)	$	6		$	5		$	—

54

Amounts recognized in net income follow:

	2014			2013
Derivatives designated as fair value hedges
Fixed-to-floating interest rate swaps	$	113		$	(126	)
Related long-term debt converted to floating interest    rates by interest rate swaps	(113		)	126
	$	—		$	—

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

Note 13. ACCOUNTS RECEIVABLE AND INVENTORY

Accounts Receivable

Eaton performs ongoing credit evaluation of its customers and maintains sufficient allowances for potential credit losses. The Company evaluates the collectability of its accounts receivable based on the length of time the receivable is past due and any anticipated future write-off based on historic experience. Accounts receivable balances are written off against an allowance for doubtful accounts after a final determination of uncollectability has been made. Accounts receivable are net of an allowance for doubtful accounts of $60 and $79 at December 31, 2014 and 2013, respectively.

Inventory

Inventory is carried at lower of cost or market. Inventory in the United States is generally accounted for using the last-in, first-out (LIFO) method. Remaining United States and non-United States inventory is accounted for using the first-in, first-out (FIFO) method. Cost components include raw materials, purchased components, direct labor, indirect labor, utilities, depreciation, inbound freight charges, purchasing and receiving costs, inspection costs, warehousing costs, and costs of the distribution network.

The components of inventory follow:

	2014			2013
Raw materials	$	924		$	955
Work-in-process	422			428
Finished goods	1,201			1,115
Inventory at FIFO	2,547			2,498
Excess of FIFO over LIFO cost	(119		)	(116		)
Total inventory	$	2,428		$	2,382

Inventory at FIFO accounted for using the LIFO method was 41% and 45% at the end of 2014 and 2013, respectively.

Note 14. BUSINESS SEGMENT AND GEOGRAPHIC REGION INFORMATION

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

Electrical Products and Electrical Systems and Services

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

55

Hydraulics

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

Aerospace

The Aerospace segment is a leading global supplier of aerospace fuel, hydraulics, and pneumatic systems for commercial and military use. Products include hydraulic power generation systems for aerospace applications including pumps, motors, hydraulic power units, hose and fittings, electro-hydraulic pumps; controls and sensing products including valves, cylinders, electronic controls, electromechanical actuators, sensors, aircraft flap and slat systems and nose wheel steering systems; fluid conveyance products, including hose, thermoplastic tubing, fittings, adapters, couplings, sealing and ducting; and fuel systems including fuel pumps, sensors, valves, adapters and regulators. In addition, products included power and load management systems and displays and panels until these businesses were sold in May of 2014. The principal markets for the Aerospace segment are manufacturers of commercial and military aircraft and related after-market customers. These manufacturers and other customers operate globally. Products are sold and serviced through a variety of channels.

Vehicle

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

Other Information

No single customer represented greater than 10% of net sales in 2014, 2013 or 2012, respectively.

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

For purposes of business segment performance measurement, the Company does not allocate items that are of a non-operating nature or are of a corporate or functional governance nature. Corporate expenses consist of transaction costs associated with the acquisition of certain businesses and corporate office expenses including compensation, benefits, occupancy, depreciation, and other administrative costs. Identifiable assets of the business segments exclude goodwill, other intangible assets, and general corporate assets, which principally consist of cash, short-term investments, deferred income taxes, certain accounts receivable, certain property, plant and equipment, and certain other assets. See Note 2 for additional information about business acquisitions.

56

Business Segment Information

	2014			2013			2012
Net sales
Electrical Products	$	7,254		$	7,026		$	3,846
Electrical Systems and Services	6,457			6,430			3,872
Hydraulics	2,975			2,981			2,960
Aerospace	1,860			1,774			1,719
Vehicle	4,006			3,835			3,914
Total net sales	$	22,552		$	22,046		$	16,311
Segment operating profit
Electrical Products	$	1,184		$	1,090		$	640
Electrical Systems and Services	843			889			424
Hydraulics	367			355			369
Aerospace	273			252			213
Vehicle	645			592			570
Total segment operating profit	3,312			3,178			2,216
Corporate
Litigation settlements	(644		)	—			—
Amortization of intangible assets	(431		)	(437		)	(195		)
Interest expense - net	(227		)	(271		)	(208		)
Pension and other postretirement benefits expense	(138		)	(183		)	(162		)
Inventory step-up adjustment	—			(34		)	(42		)
Other corporate expense - net	(111		)	(369		)	(358		)
Income before income taxes	1,761			1,884			1,251
Income tax (benefit) expense	(42		)	11			31
Net income	1,803			1,873			1,220
Less net income for noncontrolling interests	(10		)	(12		)	(3		)
Net income attributable to Eaton ordinary shareholders	$	1,793		$	1,861		$	1,217

Business segment operating profit was reduced by acquisition integration charges as follows:

	2014		2013		2012
Electrical Products	$	66	$	44	$	4
Electrical Systems and Services	51		37		13
Hydraulics	12		36		16
Total	$	129	$	117	$	33

Corporate acquisition integration charges totaled $25, $37 and $11 in 2014, 2013 and 2012, respectively. Corporate acquisition integration charges related primarily to the acquisition of Cooper and are included above in Other corporate expense - net.

Acquisition-related transaction costs, such as investment banking, legal and other professional fees, and costs associated with change in control agreements, are included above in Interest expense - net and Other corporate expense - net. These charges totaled $9 and $178 in 2013 and 2012, respectively. There were no Corporate acquisition-related transition costs in 2014. See Note 3 for additional information about acquisition integration charges and transaction costs.

57

	2014		2013		2012
Identifiable assets
Electrical Products	$	3,012	$	3,204	$	3,338
Electrical Systems and Services	2,512		2,683		2,408
Hydraulics	1,315		1,362		1,426
Aerospace	832		852		806
Vehicle	1,668		1,716		1,698
Total identifiable assets	9,339		9,817		9,676
Goodwill	13,893		14,495		14,443
Other intangible assets	6,556		7,186		7,580
Corporate	3,741		3,993		4,111
Total assets	$	33,529	$	35,491	$	35,810
Capital expenditures for property, plant and equipment
Electrical Products	$	170	$	152	$	108
Electrical Systems and Services	147		113		47
Hydraulics	79		80		60
Aerospace	28		29		27
Vehicle	160		161		148
Total	584		535		390
Corporate	48		79		203
Total expenditures for property, plant and equipment	$	632	$	614	$	593
Depreciation of property, plant and equipment
Electrical Products	$	148	$	151	$	78
Electrical Systems and Services	90		86		42
Hydraulics	67		65		61
Aerospace	28		27		26
Vehicle	130		133		136
Total	463		462		343
Corporate	51		54		38
Total depreciation of property, plant and equipment	$	514	$	516	$	381

58

Geographic Region Information

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

	2014		2013		2012
Net sales
United States	$	11,701	$	11,092	$	7,789
Canada	1,113		1,154		918
Latin America	1,988		2,113		1,588
Europe	5,074		5,112		3,997
Asia Pacific	2,676		2,575		2,019
Total	$	22,552	$	22,046	$	16,311
Long-lived assets
United States	$	1,988	$	1,966	$	1,914
Canada	25		28		33
Latin America	306		331		346
Europe	799		856		845
Asia Pacific	632		652		648
Total	$	3,750	$	3,833	$	3,786

Note 15. CONDENSED CONSOLIDATING FINANCIAL STATEMENTS

On November 20, 2012, Eaton Corporation issued senior notes totaling $4,900 to finance part of the cash portion of the acquisition of Cooper. On November 14, 2013, the senior notes were exchanged for senior notes registered under the Securities Act of 1933 (the Senior Notes). Eaton and certain other of Eaton's 100% owned direct and indirect subsidiaries (the Guarantors) fully and unconditionally guaranteed (subject, in the case of the Guarantors, other than Eaton, to customary release provisions as described below), on a joint and several basis, the Senior Notes. The following condensed consolidating financial statements are included so that separate financial statements of Eaton, Eaton Corporation and each of the Guarantors are not required to be filed with the Securities and Exchange Commission. The consolidating adjustments primarily relate to eliminations of investments in subsidiaries and intercompany balances and transactions. The condensed consolidating financial statements present investments in subsidiaries using the equity method of accounting. See Note 5 for additional information related to the Senior Notes.

The guarantee of a Guarantor that is not a parent of the issuer will be automatically and unconditionally released and discharged in the event of any sale of the Guarantor or of all or substantially all of its assets, or in connection with the release or termination of the Guarantor as a guarantor under all other U.S. debt securities or U.S. syndicated credit facilities, subject to limitations set forth in the indenture. The guarantee of a Guarantor that is a direct or indirect parent of the issuer will only be automatically and unconditionally released and discharged in connection with the release or termination of such Guarantor as a guarantor under all other debt securities or syndicated credit facilities (in both cases, U.S. or otherwise), subject to limitations set forth in the indenture.

Eaton was incorporated under the laws of Ireland on May 10, 2012, and became the successor registrant to Eaton Corporation on November 30, 2012 in connection with the acquisition of Cooper. Therefore, for presentation purposes of entities under common control, Eaton is presented as the parent company in the 2012 condensed consolidating financial statements.

During the third quarter of 2014, the Company undertook certain steps to restructure ownership of various subsidiaries. The transactions were entirely among wholly-owned subsidiaries under the common control of Eaton. This restructuring has been reflected as of the beginning of the earliest period presented below.

59

CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME YEAR ENDED DECEMBER 31, 2014
	Eaton Corporation plc			Eaton Corporation			Guarantors			Other subsidiaries			Consolidating adjustments			Total
Net sales	$	—		$	6,990		$	6,885		$	13,521		$	(4,844	)	$	22,552
Cost of products sold	—			5,519			5,075			9,882			(4,830		)	15,646
Selling and administrative expense	171			1,246			743			1,650			—			3,810
Litigation settlements	—			644			—			—			—			644
Research and development expense	—			240			202			205			—			647
Interest expense (income) - net	—			225			25			(29		)	6			227
Other income - net	—			(17		)	(81		)	(85		)	—			(183		)
Equity in (earnings) loss of    subsidiaries, net of tax	(2,191		)	(674		)	(2,655		)	(302		)	5,822			—
Intercompany expense    (income) - net	227			(263		)	855			(819		)	—			—
Income before income taxes	1,793			70			2,721			3,019			(5,842		)	1,761
Income tax (benefit) expense	—			(100		)	76			(11		)	(7		)	(42		)
Net income	1,793			170			2,645			3,030			(5,835		)	1,803
Less net income for    noncontrolling interests	—			—			—			(8		)	(2		)	(10		)
Net income attributable to    Eaton ordinary shareholders	$	1,793		$	170		$	2,645		$	3,022		$	(5,837	)	$	1,793
Other comprehensive loss	(1,339		)	(195		)	(1,367		)	(1,644		)	3,206			(1,339		)
Total comprehensive income    (loss) attributable to Eaton    ordinary shareholders	$	454		$	(25	)	$	1,278		$	1,378		$	(2,631	)	$	454

60

CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME YEAR ENDED DECEMBER 31, 2013
	Eaton Corporation plc			Eaton Corporation			Guarantors			Other subsidiaries			Consolidating adjustments			Total
Net sales	$	—		$	6,695		$	6,421		$	13,579		$	(4,649	)	$	22,046
Cost of products sold	—			5,227			4,784			10,010			(4,652		)	15,369
Selling and administrative expense	32			1,400			749			1,705			—			3,886
Research and development expense	—			255			200			189			—			644
Interest expense (income) - net	—			271			28			(22		)	(6		)	271
Other expense (income) - net	—			8			4			(20		)	—			(8		)
Equity in (earnings) loss of    subsidiaries, net of tax	(2,147		)	(668		)	(2,006		)	(288		)	5,109			—
Intercompany expense (income) - net	254			(155		)	(433		)	334			—			—
Income before income taxes	1,861			357			3,095			1,671			(5,100		)	1,884
Income tax (benefit) expense	—			(108		)	(90		)	207			2			11
Net income	1,861			465			3,185			1,464			(5,102		)	1,873
Less net income for    noncontrolling interests	—			—			—			(9		)	(3		)	(12		)
Net income attributable to    Eaton ordinary shareholders	$	1,861		$	465		$	3,185		$	1,455		$	(5,105	)	$	1,861
Other comprehensive income	404			219			474			258			(951		)	404
Total comprehensive income    attributable to Eaton    ordinary shareholders	$	2,265		$	684		$	3,659		$	1,713		$	(6,056	)	$	2,265

CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME YEAR ENDED DECEMBER 31, 2012
	Eaton Corporation plc			Eaton Corporation			Guarantors			Other subsidiaries			Consolidating adjustments			Total
Net sales	$	—		$	6,680		$	2,849		$	10,346		$	(3,564	)	$	16,311
Cost of products sold	—			5,115			2,193			7,708			(3,568		)	11,448
Selling and administrative expense	—			1,307			335			1,252			—			2,894
Research and development expense	—			230			108			101			—			439
Interest expense (income) - net	—			229			8			(29		)	—			208
Other income - net	—			10			48			13			—			71
Equity in (earnings) loss of    subsidiaries, net of tax	(1,219		)	(236		)	(1,292		)	(123		)	2,870			—
Intercompany expense (income) - net	2			(237		)	42			193			—			—
Income before income taxes	1,217			262			1,407			1,231			(2,866		)	1,251
Income tax expense	—			24			—			6			1			31
Net income	1,217			238			1,407			1,225			(2,867		)	1,220
Less net income for    noncontrolling interests	—			—			—			(3		)	—			(3		)
Net income attributable to    Eaton ordinary shareholders	$	1,217		$	238		$	1,407		$	1,222		$	(2,867	)	$	1,217
Other comprehensive (loss) income	—			(27		)	(17		)	82			(38		)	—
Total comprehensive income    (loss) attributable to Eaton    ordinary shareholders	$	1,217		$	211		$	1,390		$	1,304		$	(2,905	)	$	1,217

61

CONDENSED CONSOLIDATING BALANCE SHEETS DECEMBER 31, 2014
	Eaton Corporation plc		Eaton Corporation		Guarantors		Other subsidiaries		Consolidating adjustments			Total
Assets
Current assets
Cash	$	1	$	173	$	13	$	594	$	—		$	781
Short-term investments	—		—		1		244		—			245
Accounts receivable - net	—		500		955		2,212		—			3,667
Intercompany accounts receivable	2		759		3,820		4,101		(8,682		)	—
Inventory	—		397		637		1,445		(51		)	2,428
Prepaid expenses and other    current assets	—		464		171		340		4			979
Total current assets	3		2,293		5,597		8,936		(8,729		)	8,100
Property, plant and equipment - net	—		972		756		2,022		—			3,750
Other noncurrent assets
Goodwill	—		1,355		6,256		6,282		—			13,893
Other intangible assets	—		196		3,811		2,549		—			6,556
Deferred income taxes	—		889		10		137		(808		)	228
Investment in subsidiaries	26,612		12,179		58,687		9,145		(106,623		)	—
Intercompany loans receivable	—		7,542		2,249		40,635		(50,426		)	—
Other assets	—		533		141		328		—			1,002
Total assets	$	26,615	$	25,959	$	77,507	$	70,034	$	(166,586	)	$	33,529
Liabilities and shareholders’    equity
Current liabilities
Short-term debt	$	—	$	—	$	—	$	2	$	—		$	2
Current portion of long-term debt	—		702		304		2		—			1,008
Accounts payable	—		475		340		1,125		—			1,940
Intercompany accounts payable	117		4,125		3,449		991		(8,682		)	—
Accrued compensation	—		112		59		249		—			420
Other current liabilities	1		674		340		984		(14		)	1,985
Total current liabilities	118		6,088		4,492		3,353		(8,696		)	5,355
Noncurrent liabilities
Long-term debt	—		7,079		932		13		—			8,024
Pension liabilities	—		726		183		903		—			1,812
Other postretirement benefits    liabilities	—		283		136		94		—			513
Deferred income taxes	—		—		1,160		549		(808		)	901
Intercompany loans payable	10,711		2,723		36,162		830		(50,426		)	—
Other noncurrent liabilities	—		457		183		445		—			1,085
Total noncurrent liabilities	10,711		11,268		38,756		2,834		(51,234		)	12,335
Shareholders’ equity
Eaton shareholders' equity	15,786		8,603		34,259		63,802		(106,664		)	15,786
Noncontrolling interests	—		—		—		45		8			53
Total equity	15,786		8,603		34,259		63,847		(106,656		)	15,839
Total liabilities and equity	$	26,615	$	25,959	$	77,507	$	70,034	$	(166,586	)	$	33,529

62

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		3,369		4,469		(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		5,219		10,049		(8,342		)	8,731
Property, plant and equipment - net	—		982		761		2,090		—			3,833
Other noncurrent assets
Goodwill	—		1,382		6,294		6,819		—			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		4,743		38,039		1,576		(69,298		)	—
Intercompany loans receivable	—		8,019		2,312		18,822		(29,153		)	—
Other assets	—		450		186		370		—			1,006
Total assets	$	24,948	$	18,423	$	56,810	$	42,850	$	(107,540	)	$	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		3,734		3,266		1,310		(8,314		)	—
Accrued compensation	—		140		37		284		—			461
Other current liabilities	5		547		400		965		(4		)	1,913
Total current liabilities	9		5,413		4,083		3,727		(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		18,253		639		(29,153		)	—
Other noncurrent liabilities	—		652		161		486		—			1,299
Total noncurrent liabilities	8,148		11,406		21,285		2,781		(29,906		)	13,714
Shareholders’ equity
Eaton shareholders' equity	16,791		1,604		31,442		36,276		(69,322		)	16,791
Noncontrolling interests	—		—		—		66		6			72
Total equity	16,791		1,604		31,442		36,342		(69,316		)	16,863
Total liabilities and equity	$	24,948	$	18,423	$	56,810	$	42,850	$	(107,540	)	$	35,491

63

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS DECEMBER 31, 2014
	Eaton Corporation plc			Eaton Corporation			Guarantors			Other subsidiaries			Consolidating adjustments			Total
Net cash (used in) provided by    operating activities	$	(93	)	$	(411	)	$	(218	)	$	2,568		$	32		$	1,878
Investing activities
Capital expenditures for property,    plant and equipment	—			(127		)	(168		)	(337		)	—			(632		)
Cash received from acquisitions of    businesses, net of cash paid	—			—			—			2			—			2
Sales of short-term investment - net	—			—			133			389			—			522
Investments in affiliates	(753		)	—			—			(753		)	1,506			—
Loans to affiliates	—			(354		)	(162		)	(10,546		)	11,062			—
Repayments of loans from affiliates	—			978			212			8,451			(9,641		)	—
Proceeds from the sales    of businesses	—			93			175			14			—			282
Other - net	—			(47		)	44			(28		)	—			(31		)
Net cash (used in) provided by     investing activities	(753		)	543			234			(2,808		)	2,927			143
Financing activities
Payments on borrowings	—			(553		)	(1		)	(28		)	—			(582		)
Proceeds from borrowings from    affiliates	2,628			7,599			808			27			(11,062		)	—
Payments on borrowings from    affiliates	(476		)	(6,907		)	(1,875		)	(383		)	9,641			—
Capital contribution from affiliates	—			—			753			753			(1,506		)	—
Other intercompany financing    activities	217			(169		)	302			(350		)	—			—
Cash dividends paid	(929		)	—			—			—			—			(929		)
Cash dividends received from    affiliates	—			—			—			32			(32		)	—
Exercise of employee stock    options	54			—			—			—			—			54
(Repurchase) of shares	(650		)	—			—			—			—			(650		)
Excess tax benefit from    equity-based compensation	—			20			—			—			—			20
Other - net	—			—			—			(43		)	—			(43		)
Net cash provided by (used in)    financing activities	844			(10		)	(13		)	8			(2,959		)	(2,130		)
Effect of currency on cash	—			—			—			(25		)	—			(25		)
Total (decrease) increase in cash	(2		)	122			3			(257		)	—			(134		)
Cash at the beginning of the period	3			51			10			851			—			915
Cash at the end of the period	$	1		$	173		$	13		$	594		$	—		$	781

64

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS DECEMBER 31, 2013
	Eaton Corporation plc			Eaton Corporation			Guarantors			Other subsidiaries			Consolidating adjustments			Total
Net cash (used in) provided by    operating activities	$	(17	)	$	860		$	428		$	1,067		$	(53	)	$	2,285
Investing activities
Capital expenditures for property,    plant and equipment	—			(171		)	(119		)	(324		)	—			(614		)
Cash paid for acquisitions of    businesses, net of cash acquired	—			—			—			(9		)	—			(9		)
Sales (purchases) of short-term    investments - net	—			25			(95		)	(218		)	—			(288		)
Loans to affiliates	—			(535		)	(545		)	(6,215		)	7,295			—
Repayments of loans from affiliates	—			36			626			5,795			(6,457		)	—
Proceeds from the sales    of businesses	—			—			—			777			—			777
Other - net	—			(41		)	(12		)	(15		)	—			(68		)
Net cash (used in)     investing activities	—			(686		)	(145		)	(209		)	838			(202		)
Financing activities
Proceeds from borrowings	—			—			—			9			—			9
Payments on borrowings	—			(1,048		)	(43		)	(5		)	—			(1,096		)
Proceeds from borrowings from    affiliates	—			2,395			4,260			640			(7,295		)	—
Payments on borrowings from    affiliates	—			(2,921		)	(2,874		)	(662		)	6,457			—
Other intercompany financing    activities	688			1,365			(1,630		)	(423		)	—			—
Cash dividends paid	(796		)	—			—			—			—			(796		)
Cash dividends paid to affiliates	—			—			—			(53		)	53			—
Exercise of employee stock options	121			—			—			—			—			121
Excess tax benefit from equity-based    compensation	—			32			—			—			—			32
Other - net	—			—			—			(6		)	—			(6		)
Net cash provided by (used in)    financing activities	13			(177		)	(287		)	(500		)	(785		)	(1,736		)
Effect of currency on cash	—			—			—			(9		)	—			(9		)
Total (decrease) increase in cash	(4		)	(3		)	(4		)	349			—			338
Cash at the beginning of the period	7			54			14			502			—			577
Cash at the end of the period	$	3		$	51		$	10		$	851		$	—		$	915

65

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS DECEMBER 31, 2012
	Eaton Corporation plc			Eaton Corporation			Guarantors			Other subsidiaries			Consolidating adjustments			Total
Net cash (used in) provided by    operating activities	$	(60	)	$	1,037		$	217		$	487		$	(17	)	$	1,664
Investing activities
Capital expenditures for property,    plant and equipment	—			(291		)	(73		)	(229		)	—			(593		)
Cash (paid for) received from    acquisitions of businesses, net of    cash acquired	(6,542		)	—			11			(405		)	—			(6,936		)
Sales of short-term    investments - net	—			175			210			218			—			603
Loans to affiliates	—			(6,693		)	—			(8,054		)	14,747			—
Repayments of loans from affiliates	—			268			—			8,175			(8,443		)	—
Proceeds from the sales of    businesses	—			2			—			1			—			3
Other - net	—			(28		)	2			(23		)	—			(49		)
Net cash (used in) provided by    investing activities	(6,542		)	(6,567		)	150			(317		)	6,304			(6,972		)
Financing activities
Proceeds from borrowings	—			7,156			—			—			—			7,156
Payments on borrowings	—			(1,306		)	(16		)	(2		)	—			(1,324		)
Payments of financing costs	—			(117		)	—			—			—			(117		)
Proceeds from borrowings from    affiliates	5			8,054			6,425			263			(14,747		)	—
Payments on borrowings from    affiliates	(5		)	(8,175		)	—			(263		)	8,443			—
Other intercompany financing    activities	—			273			(340		)	67			—			—
Cash dividends paid	—			(512		)	—			—			—			(512		)
Cash dividends paid to affiliates	—			—			—			(17		)	17			—
Exercise of employee stock options	25			70			—			—			—			95
Issuance (repurchase) of shares	6,584			—			(6,425		)	—			—			159
Excess tax benefit from equity-based    compensation	—			21			—			—			—			21
Other - net	—			—			—			2			—			2
Net cash provided by (used in)    financing activities	6,609			5,464			(356		)	50			(6,287		)	5,480
Effect of currency on cash	—			—			—			20			—			20
Total increase (decrease) in cash	7			(66		)	11			240			—			192
Cash at the beginning of the period	—			120			3			262			—			385
Cash at the end of the period	$	7		$	54		$	14		$	502		$	—		$	577

66

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

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

COMPANY OVERVIEW

Eaton Corporation plc (Eaton or the Company) is a power management company with 2014 net sales of $22.6 billion. The Company provides energy-efficient solutions that help its customers effectively manage electrical, hydraulic and mechanical power more efficiently, safely and sustainably. Eaton has approximately 102,000 employees in over 60 countries and sells products to customers in more than 175 countries.

On November 30, 2012, Eaton Corporation acquired Cooper Industries plc (Cooper) for a purchase price of $13,192. The total purchase price was comprised of cash totaling $6,543 and Eaton share consideration valued at $6,649. Cooper was 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. Cooper had annual sales of $5,409 for 2011. Cooper's results of operations have been included in Eaton's Consolidated Financial Statements since November 30, 2012. Net sales and segment operating profit attributable to Cooper during this period and included in Eaton's Consolidated Financial Statements for the year ended December 31, 2012 total $470 and $66, respectively.

In addition to Cooper, Eaton acquired certain other businesses during 2012. The Consolidated Statements of Income include the results of these other businesses from the dates of the transactions. For additional information related to acquisitions, and a complete list of business acquisitions, see Note 2 to the Consolidated Financial Statements.

Summary of Results of Operations

During 2013, the Company's results of operations were most significantly impacted by the acquisition of Cooper, as noted above, partially offset by the continued impact of global uncertainty about future growth. This resulted in soft end markets and subdued economic growth for the majority of 2013. The growth experienced in 2012 was impacted by economic and political uncertainties in Europe, China, and the United States. Due to the continued uncertainty about future growth, among other factors, the Company undertook certain restructuring activities in the fourth quarter of 2012 which resulted in charges totaling $50.

During 2014, the Company's results of operations were impacted by modest growth in the Company's end markets, particularly in North America. This was partially offset by the impact of settlement of two litigation matters with ZF Meritor LLC and Meritor Transmission Corporation (collectively, Meritor) and Triumph Actuation Systems, LLC and other claimants (collectively, Triumph) for $500 and $147.5, respectively, and the sale of the Aerospace Power Distribution Management Solutions and Integrated Cockpit Solutions businesses to Safran for $270, which resulted in a pre-tax gain of $154. Also, during the second half of 2014 the Company's results of operations were negatively impacted by shifts in currency exchange rates. Despite the modest growth and negative currency exchange rates, the Company generated net income per ordinary share in 2014 that was broadly in line with the Company's guidance at the start of the year after excluding the litigation settlements and the gain on the sale of the Aerospace businesses.

Additional information related to business acquisitions and sales, restructuring activities and the litigation settlements is presented in Note 2, Note 3 and Note 7, respectively, of the Notes to the Consolidated Financial Statements.

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

	2014		2013		2012
Net sales	$	22,552	$	22,046	$	16,311
Net income attributable to Eaton ordinary shareholders	1,793		1,861		1,217
Net income per ordinary share - diluted	$	3.76	$	3.90	$	3.46

67

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, each of which excludes amounts that differ from the most directly comparable measure calculated in accordance with U.S. 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 regarding acquisition integration charges and transaction costs, see Note 3 to the Consolidated Financial Statements.

Consolidated Financial Results

	2014			Change from 2013		2013			Change from 2012		2012
Net sales	$	22,552		2	%	$	22,046		35	%	$	16,311
Gross profit	6,906			3	%	6,677			37	%	4,863
Percent of net sales	30.6		%			30.3		%			29.8		%
Income before income taxes	1,761			(7	)%	1,884			51	%	1,251
Net income	1,803			(4	)%	1,873			54	%	1,220
Less net income for noncontrolling interests	(10		)			(12		)			(3		)
Net income attributable to Eaton ordinary shareholders	1,793			(4	)%	1,861			53	%	1,217
Excluding acquisition integration charges and    transaction costs (after-tax)	102					110					167
Operating earnings	$	1,895		(4	)%	$	1,971		42	%	$	1,384
Net income per ordinary share - diluted	$	3.76		(4	)%	$	3.90		13	%	$	3.46
Excluding per share impact of acquisition integration charges    and transaction costs (after-tax)	0.21					0.23					0.48
Operating earnings per ordinary share	$	3.97		(4	)%	$	4.13		5	%	$	3.94

Net Sales

Net sales in 2014 increased by 2% compared to 2013 due to an increase in organic sales of 4%, partially offset by a decrease of 1% from the impact of currency translation and a decrease of 1% from the divestiture of Eaton's Aerospace Power Distribution Management Solutions and Integrated Cockpit Solutions businesses. The increase in organic sales in 2014 is primarily due to growth in the Company's end markets, particularly in North America. Net sales in 2013 increased by 35% compared to 2012 due to an increase of 36% from acquisitions of businesses, partially offset by a decrease of 1% from the impact of currency translation. Organic sales growth was flat in 2013 when compared to 2012, due to flat market growth primarily related to economic and political uncertainties in Europe, China, and the United States.

Gross Profit

Gross profit margin increased from 30.3% in 2013 to 30.6% in 2014. The increase in gross profit margin in 2014 was primarily due to higher sales volumes, offset by certain restructuring activities Eaton undertook in 2014 in an effort to gain efficiencies in the Vehicle, Hydraulics and Aerospace business segments. Gross profit increased from 29.8% in 2012 to 30.3% in 2013. The gross profit margin in 2013 was positively impacted by the absence of restructuring charges in 2013 that were incurred in 2012.

68

Income Taxes

During 2014, an income tax benefit of $42 was recognized (an effective tax benefit rate of 2.4%) compared to income tax expense of $11 for 2013 (an effective tax expense rate of 0.6%) and $31 for 2012 (an effective tax expense rate of 2.5%). The lower tax rate in 2014 was primarily attributable to the net tax benefit of 7.6% for the Meritor and Triumph litigation settlements and related legal costs and the gain on the sale of the Aerospace businesses, all of which occurred in the second quarter of 2014. Excluding the previously mentioned litigation settlements and gain on the sale of businesses, the 2014 income tax rate increased from 2013 due to greater levels of income in higher tax jurisdictions and net increases in worldwide tax liabilities, partially offset by additional foreign tax credit recognition in the United States and recognition of deferred tax assets in foreign jurisdictions. The lower effective tax rate for 2013, compared to 2012, was primarily attributable to the effects associated with the acquisition of Cooper, along with greater levels of income in lower tax jurisdictions, additional foreign tax credit utilization, and the benefit of two years of the U.S. research and experimentation tax credit due to the extension of the credit in the American Taxpayer Relief Act of 2012 (the Act) as signed into law in January 2013. The Act extended certain tax benefits retroactively to January 1, 2012.

Net Income

Net income attributable to Eaton ordinary shareholders of $1,793 in 2014 decreased 4% compared to Net income attributable to Eaton ordinary shareholders of $1,861 in 2013, and Net income per ordinary share of $3.76 in 2014 decreased 4% from Net income per ordinary share of $3.90 in 2013. The decrease was primarily due to settlement of the Meritor and Triumph litigation matters for $500 and $147.5, respectively, partially offset by the impact of the sale of the Aerospace Power Distribution Management Solutions and Integrated Cockpit Solutions businesses, higher sales volumes as noted above and a lower effective income tax rate. Net income per ordinary share of $3.76 in 2014 was reduced by $0.21 per share from acquisition integration charges and transaction costs and by $0.70 per share from the litigation settlements partially offset by the gain from the Aerospace divestitures. Net income attributable to Eaton ordinary shareholders of $1,861 in 2013 increased 53% compared to Net income attributable to Eaton ordinary shareholders of $1,217 in 2012, and Net income per ordinary share of $3.90 in 2013 decreased 13% from Net income per ordinary share of $3.46 in 2012. The increase was primarily due to higher sales volumes resulting from the acquisition of businesses, the most substantial of which was Cooper, and a lower effective income tax rate.

Business Segment Results of Operations

The following is a discussion of Net sales, operating profit and operating profit margin by business segment, which includes a discussion of operating profit and operating profit margin before acquisition integration charges. For additional information related to acquired businesses and integration charges, see Note 2 and Note 3, respectively, to the Consolidated Financial Statements.

Electrical Products

	2014			Change from 2013		2013			Change from 2012		2012
Net sales	$	7,254		3	%	$	7,026		83	%	$	3,846
Operating profit	1,184			9	%	1,090			70	%	640
Operating margin	16.3		%			15.5		%			16.6		%
Acquisition integration charges	$	66				$	44				$	4
Before acquisition integration charges
Operating profit	$	1,250		10	%	$	1,134		76	%	$	644
Operating margin	17.2		%			16.1		%			16.7		%

Net sales increased 3% in 2014 compared to 2013 due to an increase of 4% in organic sales, partially offset by a decrease of 1% from the impact of currency translation. Organic sales in 2014 were positively impacted by strength in North American markets. Net sales increased 83% in 2013 compared to 2012 due to an increase of 82% from the acquisition of Cooper and an increase of 1% from the impact of currency translation. Organic sales in 2013 were positively impacted by strength in the Americas, which was offset by weakness in Europe and Asia Pacific.

69

Operating margin before acquisition integration charges increased from 16.1% in 2013 to 17.2% in 2014. The increase in operating margin in 2014 was due to higher sales volumes, as noted above, and incremental synergies related to the acquisition of Cooper. Operating margin before acquisition integration charges decreased from 16.7% in 2012 to 16.1% in 2013. The decrease in operating margin in 2013 was primarily due to the changed mix of products in the segment as a result principally of the acquisition of Cooper.

Electrical Systems and Services

	2014			Change from 2013		2013			Change from 2012		2012
Net sales	$	6,457		—	%	$	6,430		66	%	$	3,872
Operating profit	843			(5	)%	889			110	%	424
Operating margin	13.1		%			13.8		%			11.0		%
Acquisition integration charges	$	51				$	37				$	13
Before acquisition integration charges
Operating profit	$	894		(3	)%	$	926		112	%	$	437
Operating margin	13.8		%			14.4		%			11.3		%

Net sales were flat in 2014 compared to 2013 due to an increase in organic sales of 2%, offset by a decrease of 2% from the impact of currency translation. The increase in organic sales in 2014 was primarily due to strength in the North American markets. Net sales increased 66% in 2013 compared to 2012 due to an increase of 66% from the acquisition of businesses and an increase in organic sales of 1%, partially offset by a decrease of 1% from the impact of currency translation. The increase in organic sales in 2013 reflects strength in the Americas and Asia Pacific.

Operating margin before acquisition integration charges decreased from 14.4% in 2013 to 13.8% in 2014. The decrease in operating margin in 2014 was primarily due to higher logistics costs, unfavorable mix, and pricing pressures. Operating margin before acquisition integration charges increased from 11.3% in 2012 to 14.4% in 2013. The increase in operating margin in 2013 was primarily due to the changed mix of products in the segment as a result of the acquisition of businesses.

Hydraulics

	2014			Change from 2013		2013			Change from 2012		2012
Net sales	$	2,975		—	%	$	2,981		1	%	$	2,960
Operating profit	367			3	%	355			(4	)%	369
Operating margin	12.3		%			11.9		%			12.5		%
Acquisition integration charges	$	12				$	36				$	16
Before acquisition integration charges
Operating profit	$	379		(3	)%	$	391		2	%	$	385
Operating margin	12.7		%			13.1		%			13.0		%

Net sales in 2014 were flat compared to 2013 due to an increase in organic sales of 2% offset by a decrease of 2% from the impact of currency translation. The increase in organic sales in 2014 was primarily driven by demand for industrial products in North America and growth in distributor sales, partially offset by weakness in the global agricultural equipment market and the China construction equipment market. Net sales in 2013 increased 1% compared to 2012 due to an increase of 6% from the acquisition of businesses, partially offset by a decrease in organic sales of 4% and a decrease of 1% from the impact of currency translation. The decrease in organic sales in 2013 primarily reflects lower market demand, particularly in the U.S. and Asia Pacific.

70

Operating margin before acquisition integration charges decreased from 13.1% in 2013 to 12.7% in 2014. The decrease in operating margin in 2014 was primarily due to costs related to new initiatives and certain restructuring activities Eaton undertook in 2014 in an effort to gain efficiencies in the segment. Operating margin before acquisition integration charges was broadly similar at 13.0% in 2012 compared to 13.1% in 2013.

Aerospace

	2014			Change from 2013		2013			Change from 2012		2012
Net sales	$	1,860		5	%	$	1,774		3	%	$	1,719
Operating profit	273			8	%	252			18	%	213
Operating margin	14.7		%			14.2		%			12.4		%

Net sales in 2014 increased 5% compared to 2013 due to an increase in organic sales of 8% and an increase of 1% from the impact of currency translation, partially offset by a decrease of 4% due to the divestitures of Eaton's Aerospace Power Distribution Management Solutions and Integrated Cockpit Solutions businesses. The increase in organic sales in 2014 was primarily due to continued strength in commercial OEM markets as well as growth in the commercial and military aftermarkets. Net sales in 2013 increased 3% compared to 2012 due to an increase in organic sales. The increase in organic sales in 2013 reflected strength in the commercial markets, partially offset by decreased demand in the military markets.

Operating margin increased from 14.2% in 2013 to 14.7% in 2014. The increase in operating margin in 2014 was due to higher sales volumes, as noted above, partially offset by certain restructuring activities Eaton undertook in 2014 in an effort to gain efficiencies in the segment. Operating margin increased from 12.4% in 2012 to 14.2% in 2013. The increase in operating margin in 2013 was primarily due to higher sales volumes.

Vehicle

	2014			Change from 2013		2013			Change from 2012		2012
Net sales	$	4,006		4	%	$	3,835		(2	)%	$	3,914
Operating profit	645			9	%	592			4	%	570
Operating margin	16.1		%			15.4		%			14.6		%

Net sales increased 4% in 2014 compared to 2013 due to an increase in organic sales of 6%, partially offset by a decrease of 2% from the impact of currency translation. The increase in organic sales in 2014 was primarily due to strong demand in North American and selected Asian Pacific markets, partially offset by weakness in South American markets. Net sales decreased 2% in 2013 compared to 2012 due to the impact of currency translation. Flat organic sales in 2013 were primarily due to lower sales volumes in the NAFTA Class 8 truck market, offset by strength in the Latin American vehicle markets and the global light vehicle markets.

Operating margin increased from 15.4% in 2013 to 16.1% in 2014. The increase in operating margin in 2014 was primarily due to higher sales volumes, as noted above, partially offset by certain restructuring activities Eaton undertook in 2014 to generate ongoing efficiencies in the segment. Operating margin increased from 14.6% in 2012 to 15.4% in 2013. The increase in operating margin in 2013 was primarily due to a change in mix of products and the impact of cost-savings initiatives taken in 2012.

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Corporate Expense

	2014			Change from 2013		2013		Change from 2012		2012
Litigation settlements	$	644		NM		$	—	NM		$	—
Amortization of intangible assets	431			(1	)%	437		124	%	195
Interest expense - net	227			(16	)%	271		30	%	208
Pension and other postretirement benefits expense	138			(25	)%	183		13	%	162
Inventory step-up adjustment	—			NM		34		(19	)%	42
Gain on divestiture of Aerospace businesses	(154		)	NM		—		NM		—
Other corporate expense - net	265			(28	)%	369		3	%	358
Total corporate expense	$	1,551		20	%	$	1,294	34	%	$	965

Total Corporate expense increased 20% in 2014 to $1,551 from $1,294 in 2013 primarily due to litigation settlements of $644 during the second quarter of 2014, partially offset by a gain of $154 on the divestiture of Eaton's Aerospace Power Distribution Management Solutions and Integrated Cockpit Solutions businesses during the second quarter of 2014 and lower costs associated with the acquisition of Cooper. Total Corporate expense increased 34% in 2013 to $1,294 from $965 in 2012 due to the acquisition of Cooper. The acquisition of Cooper resulted in an increase of 124% in Amortization of intangible assets and an increase of 30% in Interest expense - net, primarily related to financing activities in conjunction with the acquisition.

LIQUIDITY, CAPITAL RESOURCES AND CHANGES IN FINANCIAL CONDITION

Financial Condition and Liquidity

Eaton’s objective is to finance its business through operating cash flow and an appropriate mix of equity and long-term and short-term debt. By diversifying its debt maturity structure, Eaton reduces liquidity risk. The Company maintains access to the commercial paper markets through a $2.0 billion commercial paper program. To support the commercial paper program, in October 2014 the Company refinanced a $500, five-year revolving credit facility and a $750, three-year revolving credit facility with a $500, four-year revolving credit facility that will expire October 2018 and a $750, five-year revolving credit facility that will expire October 2019, respectively. The Company also maintains a $750, five-year revolving credit facility that will expire June 2017. These refinancings maintain long-term revolving credit facilities at a total of $2,000. The revolving credit facilities are used to support commercial paper borrowings and are fully and unconditionally guaranteed by Eaton and certain of its direct and indirect subsidiaries on an unsubordinated, unsecured basis. There were no borrowings outstanding under Eaton's revolving credit facilities at December 31, 2014 or 2013. Eaton's non-United States operations also had available short-term lines of credit of approximately $2,089 at December 31, 2014. As is customary to support its U.S. operations, the Company had available lines of credit of $340 from various banks for the issuance of letters of credit, of which there was $155 outstanding at December 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.

During June 2012, the Company received proceeds totaling $600 from the private issuance of notes and during November 2012 Eaton received proceeds totaling $6,522 to finance the cash portion of the acquisition of Cooper. Financing activities related to acquiring Cooper were comprised of the issuance of senior notes totaling $4,900 and borrowing $1,669 on a $6.75 billion capacity bridge facility. At December 31, 2012, $669 remained outstanding on the bridge facility borrowing and on February 1, 2013, Eaton repaid the outstanding balance. On November 30, 2012 and January 8, 2013, Eaton Corporation and Cooper, respectively, each issued guarantees on all material outstanding debt of the other.

For additional information on financing transactions and debt, see Note 5 to the Consolidated Financial Statements.

Eaton’s credit facilities and indentures governing certain long-term debt contain various covenants, the violation of which would limit or preclude the use of the credit facilities for future borrowings, or might accelerate the maturity of the related outstanding borrowings covered by the indentures. At Eaton’s present credit rating level, the most restrictive financial covenant provides that the ratio of secured debt (or lease payments due under a sale and leaseback transaction) to adjusted consolidated net worth (or consolidated net tangible assets, in each case as defined in the relevant credit agreement or indenture) may not exceed 10%. Eaton's actual ratios are substantially below the required threshold. In addition, Eaton is in compliance with each of its debt covenants for all periods presented.

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Sources and Uses of Cash Flow

Operating Cash Flow

Net cash provided by operating activities was $1,878 in 2014, a decrease of $407 compared to $2,285 in 2013. The decrease in operating cash flows in 2014 compared to 2013 was primarily due to settlement of the Meritor, Triumph and related litigation, which reduced operating cash flow by $654.

Net cash provided by operating activities was $2,285 in 2013, an increase of $621 compared to $1,664 in 2012. Operating cash flows in 2013 were primarily impacted by higher net income and lower contributions to benefit plans, partially offset by higher working capital requirements compared to 2012.

For additional information on litigation settlements, see Note 7 to the Consolidated Financial Statements.

Investing Cash Flow

Net cash provided by investing activities was $143 in 2014, an increase of $345 compared to a use of cash of $202 in 2013. The increase in 2014 was principally due to sales of short-term investments of $522 in 2014 compared to purchases of short-term investments of $288 in 2013. This source of cash in 2014 was partially offset by a decrease in proceeds from the sales of businesses, from $777 in 2013 to $282 in 2014. Capital expenditures were $632 in 2014 compared to $614 in 2013. Eaton expects approximately $675 in capital expenditures in 2015.

Net cash used in investing activities was $202 in 2013, a decrease of $6,770 as compared to $6,972 in 2012. The decrease in 2013 was principally due to a decrease of $6,927 related to cash paid for acquisitions of businesses, the largest of which was Cooper in 2012, and proceeds of $777 from the sales of businesses compared to $3 in 2012, primarily related to the sale of Apex Tool Group, LLC. These sources of cash were offset by an increase in purchases of short-term investments to $288 in 2013 compared to sales of short-term investments of $603 in 2012. Capital expenditures were $614 in 2013 compared to $593 in 2012.

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

Financing Cash Flow

Net cash used in financing activities was $2,130 in 2014, an increase in the use of cash of $394 compared to $1,736 in 2013. The increase in the use of cash was primarily due to $650 in share repurchases and an increase in cash dividends paid. Partially offsetting these uses of cash was a decrease in payments on borrowings, from $1,096 in 2013 to $582 in 2014. On February 1, 2013, Eaton repaid the $669 outstanding balance on a $1,669 borrowing on the bridge facility related to financing the acquisition of Cooper.

Net cash used in financing activities was $1,736 in 2013, a decrease of $7,216 compared to a source of cash of $5,480 in 2012. Substantially all of the increase in 2013 was due to the absence of proceeds totaling $7,156 in 2012 from the issuance of $4,900 senior notes, a $1,669 borrowing on the $6.75 billion capacity bridge facility, and the private issuance of $600 notes, which are more fully described above and primarily relate to the acquisition of Cooper.

For additional information on financing the acquisition of Cooper, see Note 5 to the Consolidated Financial Statements.

Credit Ratings

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

Credit Rating Agency (long- /short-term rating)	Rating	Outlook
Standard & Poor's	A-/A-2	Stable outlook
Moody's	Baa1/P-2	Stable outlook
Fitch	BBB+/F2	Stable outlook

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Defined Benefits Plans

Pension Plans

During 2014, the fair value of plan assets in the Company’s employee pension plans increased $249 to $4,621 at December 31, 2014. The increase in plan assets was primarily due to employer contributions and better than expected return on assets. At December 31, 2014, the net unfunded position of $1,763 in pension liabilities consisted of $754 in the U.S. qualified pension plans, $965 in plans that have no minimum funding requirements, and $121 in all other plans that require minimum funding, partially offset by $77 in plans that are overfunded.

Funding requirements are a major consideration in making contributions to Eaton’s pension plans. With respect to the Company’s pension plans worldwide, the Company intends to contribute annually not less than the minimum required by applicable law and regulations. In 2014, $362 was contributed to the pension plans. The Company contributed $200 to the U.S. Qualified Pension Plan in early 2015 and anticipates making an additional $126 of contributions to certain pension plans during 2015. The funded status of the Company’s pension plans at the end of 2015, and future contributions, will depend primarily on the actual return on assets during the year and the discount rate used to calculate certain benefits at the end of the year. Depending on these factors, and the resulting funded status of the pension plans, the level of future contributions could be materially higher or lower than in 2014.

Off-Balance Sheet Arrangements

Eaton does not have off-balance sheet arrangements or financings with unconsolidated entities or other persons. In the ordinary course of business, the Company leases certain real properties and equipment, as described in Note 7 to the Consolidated Financial Statements.

CRITICAL ACCOUNTING POLICIES

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

Revenue Recognition

Sales of products are recognized when a sales agreement is in place, products have been shipped to unaffiliated customers and title has transferred in accordance with shipping terms, the selling price is fixed and determinable and collectability is reasonably assured, all significant related acts of performance have been completed, and no other significant uncertainties exist. Shipping and handling costs billed to customers are included in Net sales and the related costs in Cost of products sold. Although the majority of the sales agreements contain standard terms and conditions, there are agreements that contain multiple elements or non-standard terms and conditions. As a result, judgment is required to determine the appropriate accounting, including whether the deliverables specified in these agreements should be treated as separate units of accounting for recognition purposes, and, if so, how the sales price should be allocated among the elements and when to recognize sales for each element. For delivered elements, sales generally are recognized only when the delivered elements have standalone value and there are no uncertainties regarding customer acceptance. Sales for service contracts generally are recognized as the services are provided.

Eaton records reductions to revenue for customer and distributor incentives, primarily comprised of rebates, at the time of the initial sale. Rebates are estimated based on sales terms, historical experience, trend analysis and projected market conditions in the various markets served. The rebate programs offered vary across businesses due to the numerous markets Eaton serves, but the most common incentives relate to amounts paid or credited to customers for achieving defined volume levels.

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Impairment of Goodwill and Other Long-Lived Assets

Goodwill

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

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

Goodwill impairment testing for 2014 was performed using a qualitative analysis, which is performed by assessing certain trends and factors that require significant judgment, including projected market outlook and growth rates, forecasted and actual sales and operating profit margins, discount rates, industry data, and other relevant qualitative factors. These trends and factors are compared to, and based on, the assumptions used in the most recent quantitative assessment. The results of the qualitative analysis did not indicate a need to perform a quantitative analysis.

Goodwill impairment testing for 2013 was performed using a quantitative analysis under which the fair value for each reporting unit was estimated using a discounted cash flow model, which considered forecasted cash flows discounted at an estimated weighted-average cost of capital. The forecasted cash flows were based on the Company's long-term operating plan and a terminal value was used to estimate the operating segment's cash flows beyond the period covered by the operating plan. The weighted-average cost of capital is an estimate of the overall after-tax rate of return required by equity and debt market holders of a business enterprise. These analyses require the exercise of significant judgments, including judgments about appropriate discount rates, perpetual growth rates and the timing of expected future cash flows of the respective reporting unit. Sensitivity analyses were performed in order to assess the reasonableness of the assumptions and the resulting estimated fair values.

For 2014 and 2013, based on a qualitative and quantitative analysis, respectively, the fair values of Eaton's reporting units continue to substantially exceed the respective carrying amounts.

Indefinite Life Intangible Assets

Indefinite life intangible assets consist of trademarks. They are evaluated annually for impairment as of July 1 using either a quantitative or qualitative analysis to determine whether their fair values exceed their respective carrying amounts. Indefinite life intangible asset impairment testing for 2014 and 2013 was performed using a quantitative analysis. Determining the fair value of these assets requires significant judgment and the Company uses a royalty relief methodology similar to that employed when the associated assets were acquired, but using updated estimates of future sales, cash flows and profitability.

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

For 2014 and 2013, the fair value of indefinite lived intangible assets substantially exceeded the respective carrying value.

Other Long-Lived Assets

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

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

Recoverability of Deferred Income Tax Assets

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

Management evaluates the realizability of deferred income tax assets for each jurisdiction in which it operates. If the Company experiences cumulative pretax income in a particular jurisdiction in a three-year period including the current and prior two years, management normally concludes that the deferred income tax assets will more likely than not be realizable and no valuation allowance is recognized, unless known or planned operating developments would lead management to conclude otherwise. However, if the Company experiences cumulative pretax losses in a particular jurisdiction in a three-year period including the current and prior two years, management then considers a series of factors in the determination of whether the deferred income tax assets can be realized. These factors include historical operating results, known or planned operating developments, the period of time over which certain temporary differences will reverse, consideration of the utilization of certain deferred income tax liabilities, tax law carryback capability in a particular country, prudent and feasible tax planning strategies, and estimates of future earnings and taxable income using the same assumptions as the Company’s goodwill and other impairment testing. After evaluation of these factors, if the deferred income tax assets are expected to be realized within the tax carryforward period allowed for that specific country, management would conclude that no valuation allowance would be required. To the extent that the deferred income tax assets exceed the amount that is expected to be realized within the tax carryforward period for a particular jurisdiction, management would establish a valuation allowance. For additional information about income taxes, see Note 8 to the Consolidated Financial Statements.

Pension and Other Postretirement Benefits Plans

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

The discount rate for United States plans was determined by discounting the expected future benefit payments using a theoretical zero-coupon spot yield curve derived from a universe of high-quality bonds as of the measurement date and solving for the single rate that generated the same benefit obligation. Only corporate bonds with a rating of Aa or higher by either Moody’s or Standard & Poor's were included. Callable bonds and certain other non-comparable bonds were eliminated. Finally, a subset of bonds was selected by grouping the universe of bonds by duration and retaining 50% of the bonds that had the highest yields.

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

Key assumptions used to calculate pension and other postretirement benefits expense are adjusted at each year-end. A 1-percentage point change in the assumed rate of return on pension plan assets is estimated to have approximately a $43 effect on pension expense. Likewise, a 1-percentage point change in the discount rate is estimated to have approximately a $75 effect on pension expense. A 1-percentage point change in the assumed rate of return on other postretirement benefits assets is estimated to have approximately a $1 effect on other postretirement benefits expense. A 1-percentage point change in the discount rate is estimated to have approximately a $4 effect on expense for other postretirement benefits plans. Additional information related to changes in key assumptions used to recognize expense for other postretirement benefits plans is found in Note 6 to the Consolidated Financial Statements.

Environmental Contingencies

As a result of past operations, Eaton is involved in remedial response and voluntary environmental remediation at a number of sites, including certain of its currently-owned or formerly-owned plants. The Company has also been named a potentially responsible party under the United States federal Superfund law, or the state equivalents thereof, at a number of disposal sites.

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A number of factors affect the cost of environmental remediation, including the number of parties involved at a particular site, the determination of the extent of contamination, the length of time the remediation may require, the complexity of environmental regulations, and the continuing advancement of remediation technology. Taking these factors into account, Eaton has estimated the costs of remediation, which will be paid over a period of years. The Company accrues an amount on an undiscounted basis, consistent with the estimates of these costs, when it is probable that a liability has been incurred. At December 31, 2014 and 2013, $140 and $149, respectively, was accrued for these costs.

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

MARKET RISK DISCLOSURE

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

Eaton uses derivative instruments to manage exposure to volatility in raw material costs, currency, and interest rates on certain debt instruments. Derivative financial instruments used by the Company are straightforward and non-leveraged. The counterparties to these instruments are financial institutions with strong credit ratings. Eaton maintains control over the size of positions entered into with any one counterparty and regularly monitors the credit rating of these institutions. See Note 12 to the Consolidated Financial Statements for additional information about hedges and derivative financial instruments.

Eaton’s ability to access the commercial paper market, and the related cost of these borrowings, is based on the strength of its credit rating and overall market conditions. The Company has not experienced any material limitations in its ability to access these sources of liquidity. At December 31, 2014, Eaton had $2,000 of long-term revolving credit facilities with banks in support of its commercial paper program. It has no direct borrowings outstanding under these credit facilities. Eaton’s non-United States operations also had available short-term lines of credit of approximately $2,089 at December 31, 2014.

Interest rate risk can be measured by calculating the short-term earnings impact that would result from adverse changes in interest rates. This exposure results from short-term debt, which includes commercial paper at a floating interest rate, long-term debt that has been swapped to floating rates, and money market investments that have not been swapped to fixed rates. Based upon the balances of investments and floating rate debt at year end 2014, a 100 basis-point increase in short-term interest rates would have increased the Company’s net, pretax interest expense by $32.

Eaton also measures interest rate risk by estimating the net amount by which the fair value of the Company’s financial liabilities would change as a result of movements in interest rates. Based on Eaton’s best estimate for a hypothetical, 100 basis point decrease in interest rates at December 31, 2014, the market value of the Company’s debt and interest rate swap portfolio, in aggregate, would increase by $494.

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

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CONTRACTUAL OBLIGATIONS

A summary of contractual obligations as of December 31, 2014 follows:

	2015			2016 to 2017			2018 to 2019			After 2020			Total
Long-term debt , including current portion(1)	$	1,008		$	1,790		$	909		$	5,130		$	8,837
Interest expense related to long-term debt	326			602			468			2,149			3,545
Reduction of interest expense from interest rate swap    agreements related to long-term debt	(68		)	(64		)	(22		)	(56		)	(210		)
Operating leases	153			198			93			60			504
Purchase obligations	813			87			38			26			964
Other obligations	333			17			14			47			411
Total	$	2,565		$	2,630		$	1,500		$	7,356		$	14,051
(1) Long-term debt excludes deferred gains and losses on derivatives related to debt, adjustments to fair market value, and premiums and discounts on long-term debentures.

Interest expense related to long-term debt is based on the fixed interest rate, or other applicable interest rate, related to the debt instrument. The reduction of interest expense due to interest rate swap agreements related to long-term debt is based on the difference in the fixed interest rate the Company receives from the swap, compared to the floating interest rate the Company pays on the swap. Purchase obligations are entered into with various vendors in the normal course of business. These amounts include commitments for purchases of raw materials, outstanding non-cancelable purchase orders, releases under blanket purchase orders, and commitments under ongoing service arrangements. Other long-term obligations principally include anticipated contributions of $326 to pension plans in 2015 and $80 of deferred compensation earned under various plans for which the participants have elected to receive disbursement at a later date.

The table above does not include future expected pension benefit payments or expected other postretirement benefits payments. Information related to the amounts of these future payments is described in Note 6 to the Consolidated Financial Statements. The table above also excludes the liability for unrecognized income tax benefits, since the Company cannot predict with reasonable certainty the timing of cash settlements with the respective taxing authorities. At December 31, 2014, the gross liability for unrecognized income tax benefits totaled $493 and interest and penalties were $120.

FORWARD-LOOKING STATEMENTS

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

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QUARTERLY DATA (unaudited)

	Quarter ended in 2014												Quarter ended in 2013
(In millions except for per share data)	Dec. 31			Sept. 30			June 30			Mar. 31			Dec. 31			Sept. 30			June 30			Mar. 31
Net sales	$	5,565		$	5,728		$	5,767		$	5,492		$	5,527		$	5,607		$	5,602		$	5,310
Gross profit	1,718			1,812			1,742			1,634			1,646			1,724			1,732			1,575
Percent of net sales	30.9		%	31.6		%	30.2		%	29.8		%	29.8		%	30.7		%	30.9		%	29.7		%
Income before income taxes	609			642			57			453			429			521			534			400
Net income	585			605			172			441			482			514			497			380
Less net income for    noncontrolling interests	(4		)	(3		)	(1		)	(2		)	(3		)	(4		)	(3		)	(2		)
Net income attributable to Eaton    ordinary shareholders	$	581		$	602		$	171		$	439		$	479		$	510		$	494		$	378
Net income per ordinary share
Diluted	$	1.23		$	1.26		$	0.36		$	0.92		$	1.00		$	1.07		$	1.04		$	0.79
Basic	1.24			1.27			0.36			0.92			1.01			1.08			1.04			0.80
Cash dividends declared per    ordinary share	$	0.49		$	0.49		$	0.49		$	0.49		$	0.42		$	0.42		$	0.42		$	0.42
Market price per ordinary share
High	$	70.51		$	79.98		$	79.65		$	78.19		$	77.00		$	71.36		$	69.92		$	63.81
Low	57.11			62.84			70.26			66.89			65.20			62.89			55.41			55.00
Earnings per share for the four quarters in a year may not equal full year earnings per share.
Significant non-recurring adjustments included in Income before income taxes are as follows:
	Quarter ended in 2014												Quarter ended in 2013
	Dec. 31			Sept. 30			June 30			Mar. 31			Dec. 31			Sept. 30			June 30			Mar. 31
Acquisition integration charges	$	32		$	19		$	37		$	66		$	55		$	36		$	37		$	26
Transaction costs	—			—			—			—			—			2			2			5

TEN-YEAR CONSOLIDATED FINANCIAL SUMMARY (unaudited)

(In millions except for per share data)	2014			2013			2012			2011			2010			2009			2008			2007			2006			2005
Continuing operations
Net sales	$	22,552		$	22,046		$	16,311		$	16,049		$	13,715		$	11,873		$	15,376		$	13,033		$	12,232		$	10,874
Income before income taxes	1,761			1,884			1,251			1,553			1,036			303			1,140			1,055			979			969
Income after income taxes	1,803			1,873			1,220			1,352			937			385			1,067			973			907			788
Income from discontinued    operations	—			—			—			—			—			—			3			35			53			22
Net income	1,803			1,873			1,220			1,352			937			385			1,070			1,008			960			810
Less net income for    noncontrolling interests	(10		)	(12		)	(3		)	(2		)	(8		)	(2		)	(12		)	(14		)	(10		)	(5		)
Net income attributable to    Eaton ordinary    shareholders	$	1,793		$	1,861		$	1,217		$	1,350		$	929		$	383		$	1,058		$	994		$	950		$	805
Net income per ordinary    share - diluted
Continuing operations	$	3.76		$	3.90		$	3.46		$	3.93		$	2.73		$	1.14		$	3.25		$	3.19		$	2.94		$	2.54
Discontinued operations	—			—			—			—			—			—			0.01			0.12			0.17			0.08
Total	$	3.76		$	3.90		$	3.46		$	3.93		$	2.73		$	1.14		$	3.26		$	3.31		$	3.11		$	2.62
Net income per ordinary    share - basic
Continuing operations	$	3.78		$	3.93		$	3.54		$	3.98		$	2.76		$	1.16		$	3.29		$	3.26		$	2.99		$	2.61
Discontinued operations	—			—			—			—			—			—			0.01			0.12			0.17			0.07
Total	$	3.78		$	3.93		$	3.54		$	3.98		$	2.76		$	1.16		$	3.30		$	3.38		$	3.16		$	2.68
Weighted-average number of    ordinary shares outstanding
Diluted	476.8			476.7			350.9			342.8			339.5			335.8			324.6			300.6			305.8			308.0
Basic	474.1			473.5			347.8			338.3			335.5			332.7			320.4			294.6			300.4			300.4
Cash dividends declared    per ordinary share	$	1.96		$	1.68		$	1.52		$	1.36		$	1.08		$	1.00		$	1.00		$	0.86		$	0.74		$	0.62
Total assets	$	33,529		$	35,491		$	35,810		$	17,873		$	17,252		$	16,282		$	16,655		$	13,430		$	11,417		$	10,218
Long-term debt	8,024			8,969			9,765			3,366			3,382			3,349			3,190			2,432			1,774			1,830
Total debt	9,034			9,549			10,836			3,773			3,458			3,467			4,271			3,417			2,586			2,464
Eaton shareholders' equity	15,786			16,791			15,113			7,469			7,362			6,777			6,317			5,172			4,106			3,778
Eaton shareholders' equity    per ordinary share	$	33.74		$	35.34		$	32.11		$	22.34		$	21.66		$	20.39		$	19.14		$	17.71		$	14.04		$	12.72
Ordinary shares outstanding	467.9			475.1			470.7			334.4			339.9			332.3			330.0			292.0			292.6			297.0

Eaton Corporation plc

2014 Annual Report on Form 10-K

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), the Company 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	Material contracts
	(a)	Senior Executive Incentive Compensation Plan (effective February 27, 2013) - Incorporated by reference to the Form 10-K Report for the year ended December 31, 2012
	(b)	Deferred Incentive Compensation Plan II - Incorporated by reference to the Form 10-K Report for the year ended December 31, 2007
	(c)	First Amendment to Deferred Incentive Compensation Plan II - Incorporated by reference to the Form S-8 filed November 30, 2012
	(d)	Excess Benefits Plan II (2008 restatement) - Incorporated by reference to the Form 10-K Report for the year ended December 31, 2007
	(e)	First Amendment to Excess Benefits Plan II (2008 restatement) - Incorporated by reference to the Form 10-K Report for the year ended December 31, 2012
	(f)	Incentive Compensation Deferral Plan II - Incorporated by reference to the Form 10-K Report for the year ended December 31, 2007
	(g)	First Amendment to Incentive Compensation Deferral Plan II - Incorporated by reference to the Form S-8 filed November 30, 2012
	(h)	Limited Eaton Service Supplemental Retirement Income Plan II - Incorporated by reference to the Form 10-K Report for the year ended December 31, 2007
	(i)	First Amended to Limited Eaton Service Supplemental Retirement Income Plan II - Incorporated by reference to the Form 10-K Report for the year ended December 31, 2012
	(j)	Supplemental Benefits Plan II (2008 restatement) - Incorporated by reference to the Form 10-K Report for the year ended December 31, 2007
	(k)	First Amendment to Supplemental Benefits Plan II (2008 restatement) - Incorporated by reference to the Form 10-K Report for the year ended December 31, 2012
	(l)	Form of Restricted Share Unit Agreement - Incorporated by reference to the Form 10-K Report for the year ended December 31, 2012
	(m)	Form of Restricted Share Agreement - Incorporated by reference to the Form 10-K Report for the year ended December 31, 2012
	(n)	Form of Restricted Share Agreement (Non-Employee Directors) - Incorporated by reference to the Form 8-K Report filed February 1, 2010
	(o)	Form of Directors' Restricted Share Unit Agreement - Incorporated by reference to the Form 10-K Report for the year ended December 31, 2012
	(p)	Form of Stock Option Agreement for Executives - Incorporated by reference to the Form 10-K Report for the year ended December 31, 2012
	(q)	Form of Stock Option Agreement for Non-Employee Directors (2008) - Incorporated by reference to the Form 10-K Report for the year ended December 31, 2007
	(r)	Amended and Restated 2002 Stock Plan - Incorporated by reference to the Form S-8 filed November 30, 2012
	(s)	Amended and Restated 2004 Stock Plan - Incorporated by reference to the Form S-8 filed November 30, 2012

(t)	Amended and Restated 2008 Stock Plan - Incorporated by reference to the Form S-8 filed November 30, 2012
(u)	Second Amended and Restated 2009 Stock Plan - Incorporated by reference to Form S-8 filed November 30, 2012
(v)	Amended and Restated 2012 Stock Plan - Incorporated by reference to the Form S-8 filed November 30, 2012
(w)	Amendment to Amended and Restated 2012 Stock Plan - Incorporated by reference to the Form 10-K Report for the year ended December 31, 2012
(x)	First Amendment to 2005 Non-Employee Director Fee Deferral Plan - Incorporated by reference to the Form S-8 filed November 30, 2012
(y)	2013 Non-Employee Director Fee Deferral Plan - Incorporated by reference to the Form 10-K Report for the year ended December 31, 2012
(z)	Form of Change of Control Agreement entered into with officers of Eaton Corporation - Incorporated by reference to the Form 10-K Report for the year ended December 31, 2008
(aa)	Form of Indemnification Agreement entered into with officers of Eaton Corporation - Incorporated by reference to the Form 10-K Report for the year ended December 31, 2002
(bb)	Form of Indemnification Agreement entered into with directors - Incorporated by reference to the Form 10-K Report for the year ended December 31, 2012
(cc)	Form of Indemnification Agreement II entered into with directors - Incorporated by reference to the Form 10-K Report for the year ended December 31, 2012
(dd)	Amended and Restated Executive Strategic Incentive Plan (amended and restated February 27, 2013) - Incorporated by reference to the Form 10-K Report for the year ended December 31, 2012
(ee)	Executive Strategic Incentive Plan II (effective January 1, 2001) - Incorporated by reference to the Form 10-K Report for the year ended December 31, 2002
(ff)	Amended and Restated Supplemental Executive Strategic Incentive Plan (amended and restated February 27, 2013) - Incorporated by reference to the Form 10-K Report for the year ended December 31, 2012
(gg)	Deferred Incentive Compensation Plan (amended and restated effective November 1, 2007) - Incorporated by reference to the Form 10-K Report for the year ended December 31, 2009
(hh)	Amended and Restated 1998 Stock Plan - Incorporated by reference to the Form S-8 filed November 30, 2012
(ii)	Trust Agreement - Officers and Employees (dated December 6, 1996) - Incorporated by reference to the Form 10-K Report for the year ended December 31, 2002
(jj)	Trust Agreement - Non-employee Directors (dated December 6, 1996) - Incorporated by reference to the Form 10-K Report for the year ended December 31, 2002
(kk)	Group Replacement Insurance Plan (GRIP) (effective June 1, 1992) - Incorporated by reference to the Form 10-K Report for the year ended December 31, 1992
(ll)	Excess Benefits Plan (amended and restated effective January 1, 1989) - Incorporated by reference to the Form 10-K Report for the year ended December 31, 2002
(mm)	Amendment to Excess Benefits Plan - Incorporated by reference to the Form 10-K Report for the year ended December 31, 2012
(nn)	Supplemental Benefits Plan (amended and restated January 1, 1989) - Incorporated by reference to the Form 10-K Report for the year ended December 31, 2002
(oo)	Amendment to Supplemental Benefits Plan - Incorporated by reference to the Form 10-K Report for the year ended December 31, 2012
(pp)	Eaton Corporation Board of Directors Policy on Incentive Compensation, Stock Options and Other Equity Grants upon the Restatement of Financial Results - Incorporated by reference to the Form 10-K Report for the year ended December 31, 2007

	(qq)	Amended and Restated Grantor Trust Agreement for Non-Employee Directors’ Deferred Fees Plans - effective January 1, 2010 - Incorporated by reference to the Form 10-K Report for the year ended December 31, 2010
	(rr)	Amended and Restated Grantor Trust Agreement for Employees’ Deferred Compensation Plans - effective January 1, 2010 - Incorporated by reference to the Form 10-K Report for the year ended December 31, 2010
	(ss)	Eaton Savings Plan 2014 Restatement - Incorporated by reference to the Form 10-K Report for the year ended December 31, 2013
	(tt)	Eaton Personal Investment Plan 2014 Restatement - Incorporated by reference to the Form 10-K Report for the year ended December 31, 2013
12		Ratio of Earnings to Fixed Charges - Filed in conjunction with this Form 10-K Report *
14		Code of Ethics - Incorporated by reference to the definitive Proxy Statement filed on March 14, 2008
21		Subsidiaries of Eaton Corporation plc - Filed in conjunction with this Form 10-K Report *
23		Consent of Independent Registered Public Accounting Firm - Filed in conjunction with this Form 10-K Report *
24		Power of Attorney - Filed in conjunction with this Form 10-K Report *
31.1		Certification of Principal Executive Officer (Pursuant to the Sarbanes-Oxley Act of 2002, Section 302) - Filed in conjunction with this Form 10-K Report *
31.2		Certification of Principal Financial Officer (Pursuant to the Sarbanes-Oxley Act of 2002, Section 302) - Filed in conjunction with this Form 10-K Report *
32.1		Certification of Principal Executive Officer (Pursuant to the Sarbanes-Oxley Act of 2002, Section 906) - Filed in conjunction with this Form 10-K Report *
32.2		Certification of Principal Financial Officer (Pursuant to the Sarbanes-Oxley Act of 2002, Section 906) - Filed in conjunction with this Form 10-K Report *
101.INS		XBRL Instance Document *
101.SCH		XBRL Taxonomy Extension Schema Document *
101.CAL		XBRL Taxonomy Extension Calculation Linkbase Document *
101.DEF		XBRL Taxonomy Extension Definition Linkbase Document *
101.LAB		XBRL Taxonomy Extension Label Linkbase Document *
101.PRE		XBRL Taxonomy Extension Presentation Linkbase Document *

_______________________________

* Submitted electronically herewith.

Attached as Exhibit 101 to this report are the following formatted in XBRL (Extensible Business Reporting Language): (i) Consolidated Statements of Income for the years ended December 31, 2014, 2013 and 2012, (ii) Consolidated Statements of Comprehensive Income for the years ended December 31, 2014, 2013 and 2012 (iii) Consolidated Balance Sheets at December 31, 2014 and 2013, (iv) Consolidated Statements of Cash Flows for the years ended December 31, 2014, 2013 and 2012, (v) Consolidated Statements of Shareholders' Equity for the years ended December 31, 2014, 2013 and 2012 and vi) Notes to Consolidated Financial Statements for the year ended December 31, 2014.

EX-12

Eaton Corporation plc

2014 Annual Report on Form 10-K

Item 15(b)

Exhibit 12

Ratio of Earnings to Fixed Charges

	Year ended December 31
(In millions)	2014			2013		2012			2011			2010
Income from continuing operations before income taxes and   noncontrolling interests in consolidated subsidiaries	$	1,761		$	1,884	$	1,251		$	1,553		$	1,036
Adjustments
(Income) loss of equity investees	(6		)	2		(2		)	(2		)	(14		)
Distributed income of equity investees	4			77		19			3			15
Interest expensed	250			290		165			154			162
Amortization of debt issue costs	9			10		74			4			4
Estimated portion of rent expense representing interest	81			80		66			65			57
Amortization of capitalized interest	14			13		12			10			10
Adjusted income from continuing operations before   income taxes	$	2,113		$	2,356	$	1,585		$	1,787		$	1,270
Fixed charges
Interest expensed	$	250		$	290	$	165		$	154		$	162
Interest capitalized	13			11		23			18			8
Amortization of debt issue costs	9			10		74			4			4
Estimated portion of rent expense representing interest	81			80		66			65			57
Total fixed charges	$	353		$	391	$	328		$	241		$	231
Ratio of earnings to fixed charges	5.99			6.03		4.83			7.41			5.50

EX-21

Eaton Corporation plc

2014 Annual Report on Form 10-K

Item 15(b)

Exhibit 21

Subsidiaries of Eaton Corporation plc

Eaton is publicly held and has no parent corporation. Eaton’s subsidiaries as of December 31, 2014, and the state or country in which each was organized, are as follows:

Consolidated Subsidiaries (A)	Where Organized
Elpro Technologies, LLC	California
Illumination Management Solutions, Inc.	California
Eaton Energy Solutions, Inc.	Colorado
Aeroquip International Inc.	Delaware
Bussmann International Holdings, LLC	Delaware
Bussmann International, Inc.	Delaware
CBE Services, Inc.	Delaware
Cooper B-Line, Inc.	Delaware
Cooper Bussmann, LLC	Delaware
Cooper Crouse-Hinds MTL, Inc.	Delaware
Cooper Crouse-Hinds, LLC	Delaware
Cooper Electrical International, LLC	Delaware
Cooper Enterprises LLC	Delaware
Cooper Finance USA, Inc.	Delaware
Cooper Industries International, LLC	Delaware
Cooper Industries Middle East, LLC	Delaware
Cooper Industries Philippines, LLC	Delaware
Cooper Industries Poland, LLC	Delaware
Cooper Industries Vietnam, LLC	Delaware
Cooper Industries, LLC	Delaware
Cooper Interconnect, Inc.	Delaware
Cooper International Finance, Inc.	Delaware
Cooper Lighting, LLC	Delaware
Cooper Notification, Inc.	Delaware
Cooper Power Systems, LLC	Delaware
Cooper Technologies Company	Delaware
Eaton Aerospace LLC	Delaware
Eaton Asia Investments Corporation	Delaware
Eaton Electric Holdings LLC	Delaware
Eaton Holding International LLC	Delaware
Eaton Hydraulics LLC	Delaware
Eaton Industrial Corporation	Delaware
Eaton Industries (Philippines), LLC	Delaware
Eaton International Corporation	Delaware
Eaton Worldwide LLC	Delaware
EIC Holding GP I	Delaware
EIC Holding GP II	Delaware
EIC Holding GP III	Delaware
EIC Holding GP IV	Delaware
EIC Holding I LLC	Delaware
EIC Holding II LLC	Delaware
EIC Holding III LLC	Delaware

Consolidated Subsidiaries (A)	Where Organized
EIC Holding IV LLC	Delaware
EIC Holding V LLC	Delaware
EIC Holding VI LLC	Delaware
Hernis Scan Systems (US) LLC	Delaware
Intelligent Switchgear Organization LLC	Delaware
McGraw-Edison Development Corporation	Delaware
MTL Instruments LLC	Delaware
MTL Partners, Inc.	Delaware
MTL Partners II, Inc.	Delaware
Standard Automation & Control LP	Delaware
Vickers International Inc.	Delaware
Viking Electronics, Inc.	Delaware
Wright Line LLC	Delaware
Wright Line Holding, Inc.	Delaware
Azonix Corporation	Massachusetts
WPI-Boston Division, Inc.	Massachusetts
Eaton Ann Arbor LLC	Michigan
Cannon Technologies, Inc.	Minnesota
Cooper Wheelock, Inc.	New Jersey
RTK Instruments Limited Liability Company	New Jersey
Cooper Wiring Devices, Inc.	New York
Eaton (US) LLC	Ohio
Eaton II (US) LLC	Ohio
Eaton Aeroquip LLC	Ohio
Eaton Corporation	Ohio
Eaton Holding LLC	Ohio
Eaton Holding II LLC	Ohio
Eaton Leasing Corporation	Ohio
Eaton US Holdings, Inc.	Ohio
Sure Power, Inc.	Oregon
Cooper Power Systems Transportation Company	Wisconsin
Eaton Industries (Argentina) S.A.	Argentina
Cooper Australia Holdings Pty. Ltd.	Australia
Cooper Australia Investments Pty. Ltd.	Australia
Cooper Electrical Australia Pty. Limited	Australia
Eaton Industries Pty. Ltd.	Australia
Elpro International Pty Ltd.	Australia
Elpro Technologies Pty. Limited	Australia
MTL Instruments Pty Limited	Australia
Eaton Holding G.m.b.H.	Austria
Eaton Holding (Austria) G.m.b.H.	Austria
Eaton Industries (Austria) G.m.b.H.	Austria
Eaton Holding SRL	Barbados
Eaton Electric SPRL	Belgium
Eaton Filtration BVBA	Belgium
Eaton Industries (Belgium) BVBA	Belgium
Cambridge International Insurance Company Ltd.	Bermuda
Cooper Finance Group Ltd.	Bermuda
Cooper Investment Group Ltd.	Bermuda

Consolidated Subsidiaries (A)	Where Organized
Eaton Industries Holdings Ltd.	Bermuda
Saturn Insurance Company Ltd.	Bermuda
Aeroquip do Brasil Ltda.	Brazil
Blinda Industria e Comercio Ltda.	Brazil
Bussmann do Brasil Ltda.	Brazil
Cooper Power Systems do Brasil Ltda.	Brazil
Eaton Ltda.	Brazil
Eaton Power Solution Ltda.	Brazil
Hernis Scan System do Brasil Comercio E Servicos LTDA	Brazil
Moeller Electric Ltda.	Brazil
Moeller Industria de electro-electronicos do Amazonas Ltda.	Brazil
Digital Lighting Holdings Limited	British Virgin Islands
Phoenixtec International Corp.	British Virgin Islands
Senyuan International Investments Limited	British Virgin Islands
Silver Light International Limited	British Virgin Islands
Winner Hydraulics Ltd.	British Virgin Islands
Eaton Industries EOOD	Bulgaria
Aeroquip-Vickers Canada, Inc.	Canada
Cooper Finance (Canada) L.P.	Canada
Cooper Industries (Canada) Inc.	Canada
Cooper Industries (Electrical) Inc.	Canada
Cooper Industries Holdings (Canada) Inc.	Canada
Cyme International T & D Inc.	Canada
Eaton ETN Offshore Company	Canada
Eaton ETN Offshore II Company	Canada
Eaton Industries (Canada) Company	Canada
Fifth Light Technology Ltd.	Canada
Aeroquip Financial Ltd.	Cayman Islands
Cooper Colombia Investments, Ltd.	Cayman Islands
Cooper Netherlands Investments, Ltd.	Cayman Islands
Cooper Switzerland Investments, Ltd.	Cayman Islands
Cutler-Hammer Electrical Company	Cayman Islands
Cutler-Hammer Industries Ltd.	Cayman Islands
Eaton Holding I Limited	Cayman Islands
Eaton Holding II Limited	Cayman Islands
Eaton Holding III Limited	Cayman Islands
Georgetown Financial Services Ltd.	Cayman Islands
Green Holding Company	Cayman Islands
Senyuan International Holdings Limited	Cayman Islands
Eaton Industries (Chile) S.p.A.	Chile
Beijing Internormen-Filter Ltd. Co.	China
Cooper (China) Co., Ltd.	China
Cooper (Ningbo) Electric Co., Ltd.	China
Cooper Edison (Pingdingshan) Electronic Technologies Co., Ltd.	China
Cooper Electric (Changzhou) Co., Ltd.	China
Cooper Electric (Shanghai) Co., Ltd.	China
Cooper Electronic Technologies (Shanghai) Co., Ltd.	China
Cooper Shanghai Power Capacitor Co., Ltd.	China
Cooper Xi'an Fusegear Co., Ltd.	China

Consolidated Subsidiaries (A)	Where Organized
Cooper Yuhua (Changzhou) Electric Equipment Manufacturing Co., Ltd.	China
Digital Lighting (Dong Guan) Co., Ltd.	China
Dongguan Cooper Electronics Co. Ltd.	China
Dongguan Fu Li An Electronics Co., Ltd.	China
Dongguan Wiring Devices Electronics Co., Ltd.	China
Eaton (China) Investments Co., Ltd.	China
Eaton Electrical Ltd.	China
Eaton Electrical (Zhongshan) Co., Ltd.	China
Eaton Electrical Equipment Co., Ltd.	China
Eaton Filtration (Shanghai) Co. Ltd.	China
Eaton Fluid Power (Shanghai) Co., Ltd.	China
Eaton Hydraulics (Luzhou) Co., Ltd.	China
Eaton Hydraulics (Ningbo) Co., Ltd.	China
Eaton Hydraulics Systems (Jining) Co., Ltd.	China
Eaton Industrial Clutches and Brakes (Shanghai) Co., Ltd.	China
Eaton Industries (Jining) Co., Ltd	China
Eaton Industries (Shanghai) Co., Ltd.	China
Eaton Industries (Wuxi) Co. Ltd.	China
Eaton Power Quality (Shanghai) Co., Ltd.	China
Eaton Senstar Automotive Fluid Connector (Shanghai) Co., Ltd.	China
Funke+Huster (Tianjin) Electronics Co. Ltd.	China
Kaicheng Funke+Huster (Tangshan) Mining Electrical Co. Ltd.	China
Lian Zheng Electronics (Shenzhen) Co., Ltd.	China
Moeller Electric (Shanghai) Co., Ltd.	China
Moeller Electrical Equipment (Suzhou) Co.	China
Phoenixtec Electronics (Shenzhen) Co., Ltd.	China
Santak Electronics (Shenzhen) Co., Ltd.	China
Shanghai Eaton Engine Components Co., Ltd.	China
UPE Electronics (Shenzhen) Co., Ltd.	China
Cooper Industries Colombia S.A.S.	Colombia
Eaton Industries (Colombia) S.A.S.	Colombia
Eaton Electrical S.A.	Costa Rica
Eaton Electric s.r.o.	Czech Republic
Eaton Elektrotechnika s.r.o.	Czech Republic
Eaton Industries s.r.o.	Czech Republic
Eaton Electrical ApS	Denmark
Eaton Filtration (Denmark) ApS	Denmark
Cutler-Hammer, SRL	Dominican Republic
Eaton Industries (Egypt) Ltd.	Egypt
Eaton Holec OY	Finland
Eaton Power Quality OY (Finland)	Finland
Cooper Capri S.A.S.	France
Cooper Menvier France SARL	France
Cooper Securite S.A.S.	France
Eaton France Holding S.A.S.	France
Eaton Industries (France) S.A.S.	France
Eaton Power Quality S.A.S.	France
Eaton S.A.S.	France
Eaton Technologies S.A.	France

Consolidated Subsidiaries (A)	Where Organized
Martek Power F SAS	France
MP Group SAS	France
MTL Instruments SARL	France
Sefelec SAS	France
Semelec SAS	France
CEAG Notlichtsysteme GmbH	Germany
Cooper Crouse-Hinds GmbH	Germany
Cooper Germany Holdings GmbH	Germany
Cooper Industries Finanzierungs-GbR	Germany
Cooper Industries Holdings GmbH	Germany
Cooper Investments Partners GmbH Co. KG	Germany
Cooper Investments Verwaltungsgesellschaft mbH	Germany
Eaton Electric G.m.b.H.	Germany
Eaton Electrical IP G.m.b.H. & Co. KG	Germany
Eaton Germany G.m.b.H.	Germany
Eaton GmbH & Co. KG	Germany
Eaton Holding SE & Co. KG	Germany
Eaton Industrial IP G.m.b.H. & Co. KG	Germany
Eaton Industries G.m.b.H.	Germany
Eaton Industries Holding G.m.b.H.	Germany
Eaton Production International G.m.b.H.	Germany
Eaton Protection Systems IP G.m.b.H. & Co. KG	Germany
Eaton SE	Germany
Eaton Safety IP G.m.b.H. & Co. KG	Germany
Eaton Technologies G.m.b.H.	Germany
Eaton Technologies IP G.m.b.H. & Co. KG	Germany
FHF Bergbautechnik GmbH & Co. KG	Germany
FHF Funke+Huster Fernsig GmbH	Germany
FHF New World GmbH	Germany
Funke+Huster GmbH	Germany
GeCma Components electronic GmbH	Germany
Hein Moeller Stiftung G.m.b.H.	Germany
Institute for International Product Safety G.m.b.H.	Germany
Martek Power GmbH	Germany
MTL Instruments GmbH	Germany
Sefelec GmbH	Germany
Cooper Univel S.A.	Greece
Digital Lighting Co., Limited	Hong Kong
Eaton Electric & Engineering Services Limited	Hong Kong
Eaton Enterprises Limited	Hong Kong
Eaton Power Quality Limited	Hong Kong
Martek Power Limited	Hong Kong
Maxiford Trading Limited	Hong Kong
Riseson International Limited	Hong Kong
Scoremax Limited	Hong Kong
Silver Victory Hong Kong Limited	Hong Kong
Tai Ah Electrical Ltd.	Hong Kong
Vickers Systems Limited	Hong Kong
Cooper Bussmann Hungaria Kft.	Hungary

Consolidated Subsidiaries (A)	Where Organized
Eaton Enterprises (Hungary) Kft.	Hungary
Eaton Industries KFT	Hungary
Cooper Bussmann India Private Limited	India
Cooper India Private Limited	India
Eaton Electric Private Limited	India
Eaton Fluid Power Limited	India
Eaton Industrial Systems Private Limited	India
Eaton Industries Private Limited	India
Eaton Power Quality Private Limited	India
Eaton Technologies Private Limited	India
Internormen Filters Private Limited	India
MTL Instruments Private Limited	India
PT. Eaton Industries	Indonesia
PT. Fluid Sciences Batam	Indonesia
Abeiron III Limited	Ireland
Cooper Industries	Ireland
Cooper Industries Trading Limited	Ireland
Eaton Capital	Ireland
Eaton Finance (Ireland) Limited	Ireland
Eaton Industries (Ireland) Ltd.	Ireland
Tractech (Ireland) Limited	Ireland
Tractech Industries (Ireland) Limited	Ireland
TT (Ireland) Acquisition Limited	Ireland
Eaton Industries (Israel) Ltd.	Israel
Filflex LTD	Israel
Cooper Csa Srl	Italy
Eaton Filtration (Italy) S.r.l.	Italy
Eaton Fluid Power S.r.l.	Italy
Eaton Industries (Italy) S.r.l.	Italy
Eaton S.r.l.	Italy
Gitiesse S.r.l.	Italy
MTL Italia Srl	Italy
Cooper Industries Japan K.K.	Japan
Eaton Electric (Japan) Ltd.	Japan
Eaton Filtration Ltd.	Japan
Eaton Industries (Japan) Ltd.	Japan
Eaton Japan Co., Ltd.	Japan
Eaton Electric S.I.A.	Latvia
Aeroquip-Vickers International S.a.r.l.	Luxembourg
Cooper International Holdings S.a.r.l.	Luxembourg
Cooper Investment Group S.a.r.l.	Luxembourg
Cooper Offshore Holdings S.a.r.l.	Luxembourg
Eaton Controls (Luxembourg) S.a.r.l.	Luxembourg
Eaton Finance S.a.r.l.	Luxembourg
Eaton Holding S.a r.l.	Luxembourg
Eaton Holding II S.a.r.l.	Luxembourg
Eaton Holding III S.a.r.l.	Luxembourg
Eaton Holding IV S.a.r.l.	Luxembourg
Eaton Holding V S.a.r.l.	Luxembourg

Consolidated Subsidiaries (A)	Where Organized
Eaton Holding VI S.a.r.l.	Luxembourg
Eaton Holding VIII S.a.r.l.	Luxembourg
Eaton Holding IX S.a.r.l.	Luxembourg
Eaton Holding X S.a.r.l.	Luxembourg
Eaton Holding XII B.V./S.a.r.l.	Luxembourg
Eaton Industries (Luxembourg) B.V./S.a.r.l.	Luxembourg
Eaton Services S.a.r.l.	Luxembourg
Eaton Moeller S.a.r.l.	Luxembourg
Eaton Technologies (Luxembourg) S.a.r.l.	Luxembourg
Martek Power SA	Luxembourg
Cooper Industries Malaysia SDN BHD	Malaysia
Eaton Industries Sdn. Bhd.	Malaysia
ETN Asia International Limited	Mauritius
ETN Holding 1 Limited	Mauritius
ETN Holding 2 Limited	Mauritius
ETN Holding 3 Limited	Mauritius
Arrow-Hart, S. de R.L. de C.V.	Mexico
Bussmann, S. de R.L. de C.V.	Mexico
Componentes de Iluminacion, S. de R.L. de C.V.	Mexico
Cooper Crouse-Hinds, S. de R.L. de C.V.	Mexico
Cooper Lighting de Mexico, S. de R.L. de C.V.	Mexico
Cooper Mexico Distribucion, S. de R.L. de C.V.	Mexico
Cooper Wiring Devices de Mexico, S.A de C.V.	Mexico
Cooper Wiring Devices Manufacturing, S. de R.L. de C.V.	Mexico
Eaton Controls, S. de R.L. de C.V.	Mexico
Eaton Enterprises, S. de R.L. de C.V.	Mexico
Eaton Industries, S. de R.L. de C.V.	Mexico
Eaton Solutions, S. de R.L. de C.V.	Mexico
Eaton Technologies, S. de R.L. de C.V.	Mexico
Eaton Trading Company, S. de R.L. de C.V.	Mexico
Eaton Truck Components, S. de R.L. de C.V.	Mexico
Electromanufacturas, S de R.L. de C.V.	Mexico
Iluminacion Cooper de las Californias, S de R.L. de C.V.	Mexico
Martek Power S.A. de C.V.	Mexico
Eaton Electric S.a.r.l.	Morocco
Eaton Industries (Morocco) LLC	Morocco
Cooper Crouse-Hinds B.V.	Netherlands
Cooper Industries Global B.V.	Netherlands
Cooper Safety B.V.	Netherlands
Eaton B.V.	Netherlands
Eaton C.V.	Netherlands
Eaton Holding I B.V.	Netherlands
Eaton Holding III B.V.	Netherlands
Eaton Holding V B.V.	Netherlands
Eaton Holding VI B.V.	Netherlands
Eaton Holding VII B.V.	Netherlands
Eaton Holding (Netherlands) B.V.	Netherlands
Eaton Industries (Netherlands) B.V.	Netherlands
Eaton International B.V.	Netherlands

Consolidated Subsidiaries (A)	Where Organized
Eaton Moeller B.V.	Netherlands
MTL Instruments B.V.	Netherlands
Turlock B.V.	Netherlands
Eaton Industries Company	New Zealand
Eaton Industries International Nigeria Limited	Nigeria
Cooper Crouse-Hinds AS	Norway
Eaton Electric AS	Norway
Hernis Scan Systems A/S	Norway
Eaton Industries Panama S.A.	Panama
Eaton Industries SAC	Peru
Eaton Automotive Components Spolka z.o.o.	Poland
Eaton Automotive Spolka z.o.o.	Poland
Eaton Automotive Systems Spolka z.o.o.	Poland
Eaton Electric Spolka z.o.o.	Poland
Eaton Filtration (Poland) Sp. z.o.o.	Poland
Eaton I Spolka z.o.o.	Poland
Eaton Truck Components Spolka z.o.o.	Poland
Cooper Pretronica Lda.	Portugal
Eaton Madeira SGPS Lda.	Portugal
Cooper Industries Romania SRL	Romania
Eaton Electric S.r.l.	Romania
Eaton Electro Productie S.r.l.	Romania
Cooper Industries Russia LLC	Russia
Eaton LLC	Russia
Eaton LP	Scotland
Eaton II LP	Scotland
Eaton III LP	Scotland
Eaton IV LP	Scotland
Eaton Industries LP	Scotland
Eaton Manufacturing LP	Scotland
Eaton Electric doo	Serbia
Cooper Crouse-Hinds Pte. Ltd.	Singapore
Eaton Industries Pte. Ltd.	Singapore
FHF Safety Products Pte. Ltd.	Singapore
Hernis Scan Systems - Asia Pte. Ltd.	Singapore
Eaton Electric s.r.o.	Slovak Republic
Eaton Electric (South Africa) Pty Ltd.	South Africa
Eaton Hydraulics (Proprietary) Limited	South Africa
Eaton Truck Components (Proprietary) Ltd.	South Africa
Cooper Korea Ltd.	South Korea
Eaton Industries (Korea) Limited	South Korea
Aeroquip Iberica S.L.	Spain
Cooper Crouse-Hinds, S.A.	Spain
Eaton Industries (Spain) S.L.	Spain
Productos Eaton Livia S.L.	Spain
Eaton Holec AB	Sweden
Eaton Power Quality AB	Sweden
Ultronics Nordic Sales AB	Sweden
Eaton Automation AG	Switzerland

Consolidated Subsidiaries (A)	Where Organized
Eaton Automation Holding G.m.b.H	Switzerland
Eaton Industries II G.m.b.H.	Switzerland
Eaton Industries Manufacturing G.m.b.H.	Switzerland
Eaton Manufacturing G.m.b.H	Switzerland
Eaton Manufacturing II G.m.b.H.	Switzerland
Eaton Manufacturing III G.m.b.H.	Switzerland
Eaton Switzerland Holding I GmbH	Switzerland
Eaton Switzerland Holding II GmbH	Switzerland
Centralion Industrial Inc.	Taiwan
Eaton Phoenixtec MMPL Co. Ltd.	Taiwan
RTE Far East Corporation	Taiwan
Eaton Electric Company Ltd.	Thailand
Eaton Industries (Thailand) Ltd.	Thailand
Moeller Electric Ltd.	Thailand
Martek Power Tunisie SARL	Tunisia
Eaton Elektrik Ticaret Limited Sirketi	Turkey
Polimer Hortum Teknolojileri Ticaret Limited Sirketi	Turkey
Polimer Kaucuk Sanayi ve Pazarlama A.S.	Turkey
D.P. Eaton Electric	Ukraine
Cooper Crouse-Hinds (LLC)	United Arab Emirates
Cooper Industries FZE	United Arab Emirates
Cooper Industries Healthcare Solutions FZ-LLC	United Arab Emirates
Eaton FZE	United Arab Emirates
Aphel Ltd.	United Kingdom
Aphel Technologies Ltd.	United Kingdom
Cooper (UK) Group Limited	United Kingdom
Cooper B-Line Limited	United Kingdom
Cooper Bussmann (U.K.) Limited	United Kingdom
Cooper Controls Limited	United Kingdom
Cooper Controls (U.K.) Limited	United Kingdom
Cooper Controls (Watford) Limited	United Kingdom
Cooper Crouse-Hinds (UK) Ltd.	United Kingdom
Cooper Fulleon Limited	United Kingdom
Cooper Industries (England) Limited	United Kingdom
Cooper Industries (U.K.) Limited	United Kingdom
Cooper Industries UK Subco Limited	United Kingdom
Cooper Lighting and Safety Limited	United Kingdom
Cooper MEDC Limited	United Kingdom
Cooper Safety Limited	United Kingdom
Cooper Security Limited	United Kingdom
DFL Fusegear Limited	United Kingdom
Eaton Aerospace Limited	United Kingdom
Eaton Electric Limited	United Kingdom
Eaton Electric Sales Ltd.	United Kingdom
Eaton Holding Limited	United Kingdom
Eaton Industries (UK) Limited	United Kingdom
Eaton Limited	United Kingdom
Eaton Power Quality Limited	United Kingdom
Eaton Power Solutions Limited	United Kingdom

Consolidated Subsidiaries (A)	Where Organized
EX Innovations Limited	United Kingdom
Martek Power Limited (UK)	United Kingdom
Measurement Technology Limited	United Kingdom
Menvier Overseas Holdings Limited	United Kingdom
Moeller Holding Ltd.	United Kingdom
Ocean Technical Systems Limited	United Kingdom
Polaron Components Limited	United Kingdom
Redapt Engineering Co. Limited	United Kingdom
RTK Instruments Limited	United Kingdom
The MTL Instruments Group Limited	United Kingdom
Eaton Electrical, S.A.	Venezuela
(A) Other Eaton subsidiaries, many inactive, are not listed above. If considered in the aggregate, they would not be material.

EX-23

Eaton Corporation plc

2014 Annual Report on Form 10-K

Item 15(b)

Exhibit 23

Consent of Independent Registered Public Accounting Firm

We consent to the incorporation by reference in the following Registration Statements of our reports dated February 26, 2015, with respect to the consolidated financial statements of Eaton Corporation plc and the effectiveness of internal control over financial reporting of Eaton Corporation plc included in this Annual Report (Form 10-K) of Eaton Corporation plc for the year ended December 31, 2014:

Registration number	Description	Filing date
333-191035	Form S-4 Registration Statement	September 6, 2013
333-185206-03	Multiple plans - Form S-8 Registration Statement	November 30, 2012
	Amended and Restated 2012 Stock Plan
	Second Amended and Restated 2009 Stock Plan
	Amended and Restated 2008 Stock Plan
	Amended and Restated 2004 Stock Plan
	Amended and Restated 2002 Stock Plan
	Amended and Restated 1998 Stock Plan
	Amended and Restated 1995 Stock Plan
	Eaton Incentive Compensation Deferral Plan II
	Eaton Corporation Deferred Incentive Compensation Plan II
	2005 Non-Employee Director Fee Deferral Plan
	Eaton Savings Plan
	Eaton Personal Investment Plan
	Eaton Puerto Rico Retirement Savings Plan
	Cooper Retirement Savings and Stock Ownership Plan

/s/ Ernst & Young LLP

Cleveland, Ohio

February 26, 2015

EX-24

Eaton Corporation plc

2014 Annual Report on Form 10-K

Item 15(b)

Exhibit 24

Power of Attorney

KNOW ALL MEN BY THESE PRESENTS: That each person whose name is signed below has made, constituted and appointed, and by this instrument does make, constitute and appoint Richard H. Fearon, Ken. D. Semelsberger or James P. Even his or her true and lawful attorney, for him or her and in his or her name, place and stead to subscribe, as attorney-in-fact, his or her signature as Director or Officer or both, as the case may be, of Eaton Corporation plc, to its Annual Report on Form 10-K for the year ended December 31, 2014 pursuant to the Securities Exchange Act of 1934, and to any and all amendments to that Annual Report, hereby giving and granting unto each such attorney-in-fact full power and authority to do and perform every act and thing whatsoever necessary to be done in the premises, as fully as he or she might or could do if personally present, hereby ratifying and confirming all that each such attorney-in-fact shall lawfully do or cause to be done by virtue hereof.

This Power of Attorney shall not apply to any Annual Report on Form 10-K or amendment thereto filed after December 31, 2015.

IN WITNESS WHEREOF, this Power of Attorney has been signed at Cleveland, Ohio, U.S.A. this 25th day of February, 2015.

/s/ Alexander M. Cutler	/s/ Richard H. Fearon
Alexander M. Cutler, Chairman; Principal Executive Officer; Director	Richard H. Fearon, Principal Financial Officer
/s/ Ken D. Semelsberger	/s/ George S. Barett
Ken D. Semelsberger, Principal Accounting Officer	George S. Barrett, Director
/s/ Todd M. Bluedorn	/s/ Christopher M. Connor
Todd M. Bluedorn, Director	Christopher M. Connor, Director
/s/ Michael J. Critelli	/s/ Charles E. Golden
Michael J. Critelli, Director	Charles E. Golden, Director
/s/ Linda A. Hill	/s/ Arthur E. Johnson
Linda A. Hill, Director	Arthur E. Johnson, Director
/s/ Ned C. Lautenbach	/s/ Deborah L. McCoy
Ned C. Lautenbach, Director	Deborah L. McCoy, Director
	/s/ Sandra Pianalto
Gregory R. Page, Director	Sandra Pianalto, Director
/s/ Gerald B. Smith
Gerald B. Smith, Director

EX-31.1

Eaton Corporation plc

2014 Annual Report on Form 10-K

Item 15(b)

Exhibit 31.1

Certification

I, Alexander M. Cutler, certify that:

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

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

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

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

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

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

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

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

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

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

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

Date:	February 26, 2015	/s/ Alexander M. Cutler
		Alexander M. Cutler
		Principal Executive Officer

EX-31.2

Eaton Corporation plc

2014 Annual Report on Form 10-K

Item 15(b)

Exhibit 31.2

Certification

I, Richard H. Fearon, certify that:

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

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

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

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

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

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

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

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

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

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

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

Date:	February 26, 2015	/s/ Richard H. Fearon
		Richard H. Fearon
		Principal Financial Officer

EX-32.1

Eaton Corporation plc

2014 Annual Report on Form 10-K

Item 15(b)

Exhibit 32.1

Certification

This written statement is submitted in accordance with Section 906 of the Sarbanes-Oxley Act of 2002. It accompanies Eaton Corporation plc’s Annual Report on Form 10-K for the year ended December 31, 2014 (“10-K Report”).

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

Date:	February 26, 2015	/s/ Alexander M. Cutler
		Alexander M. Cutler
		Principal Executive Officer

EX-32.2

Eaton Corporation plc

2014 Annual Report on Form 10-K

Item 15(b)

Exhibit 32.2

Certification

This written statement is submitted in accordance with Section 906 of the Sarbanes-Oxley Act of 2002. It accompanies Eaton Corporation plc’s Annual Report on Form 10-K for the year ended December 31, 2014 (“10-K Report”).

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

Date:	February 26, 2015	/s/ Richard H. Fearon
		Richard H. Fearon
		Principal Financial Officer

XML

Summary of Significant Accounting Policies Summary of Significant Accounting Policies (Details) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Accounting Policies [Abstract]
Net sales	$ 22,552	$ 22,046	$ 16,311
Number of Eaton employees	102,000
Countries of operation	over 60
Countries where products are sold	175
Minimum [Member]
Investments in associate companies [Line Items]
Equity method of accounting, ownership interest	20.00%
Maximum [Member]
Investments in associate companies [Line Items]
Equity method of accounting, ownership interest	50.00%

XML

Debt Senior Notes (Details) (USD $) In Millions, unless otherwise specified	0 Months Ended	12 Months Ended
	Nov. 14, 2013	Dec. 31, 2014	Nov. 20, 2012	Dec. 31, 2013
Debt Instrument [Line Items]
Issuance of senior notes			$ 4,900
Optional senior note redemption provision - first possibility		100% of principal
Optional senior note redemption provision - second possibility		sum of present value of remaining payments plus basis points ranging from 10 to 25
Senior note control provision		purchase price of 101% of principal plus accrued and unpaid interest
Unregistered Senior Notes exchanged for Senior Notes registered under the Securities Act of 1933	Nov. 14, 2013
Senior Notes, Total capitalized deferred financing fees			40
Senior Notes [Member]
Debt Instrument [Line Items]
Proceeds from issuance of senior notes			4,853
Issuance of senior notes			$ 4,900
Senior Notes [Member] | Senior notes due 2015 [Member]
Debt Instrument [Line Items]
Debt Instrument, Interest Rate, Stated Percentage		0.95%	0.95%	0.95%
Senior Notes [Member] | Senior notes due 2017 [Member]
Debt Instrument [Line Items]
Debt Instrument, Interest Rate, Stated Percentage		1.50%	1.50%	1.50%
Senior Notes [Member] | Senior notes due 2022 [Member]
Debt Instrument [Line Items]
Debt Instrument, Interest Rate, Stated Percentage		2.75%	2.75%	2.75%
Senior Notes [Member] | Senior notes due 2032 [Member]
Debt Instrument [Line Items]
Debt Instrument, Interest Rate, Stated Percentage		4.00%	4.00%	4.00%
Senior Notes [Member] | Senior notes due 2042 [Member]
Debt Instrument [Line Items]
Debt Instrument, Interest Rate, Stated Percentage		4.15%	4.15%	4.15%

XML

Goodwill and Other Intangible Assets Schedule of Goodwill by Segment (Details) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Goodwill [Line Items]
Goodwill	$ 14,495	$ 14,443
Additions		27
Translation adjustments	(524)	25
Goodwill written off from sale of businesses	(78)
Goodwill	13,893	14,495
Electrical Products [Member]
Goodwill [Line Items]
Goodwill	7,189	7,117
Additions		1
Translation adjustments	(249)	71
Goodwill written off from sale of businesses	0
Goodwill	6,940	7,189
Electrical Systems and Services [Member]
Goodwill [Line Items]
Goodwill	4,517	4,520
Additions		22
Translation adjustments	(203)	(25)
Goodwill written off from sale of businesses	0
Goodwill	4,314	4,517
Hydraulics [Member]
Goodwill [Line Items]
Goodwill	1,385	1,404
Additions		4
Translation adjustments	(58)	(23)
Goodwill written off from sale of businesses	0
Goodwill	1,327	1,385
Aerospace [Member]
Goodwill [Line Items]
Goodwill	1,048	1,045
Additions		0
Translation adjustments	(8)	3
Goodwill written off from sale of businesses	(78)
Goodwill	962	1,048
Vehicle [Member]
Goodwill [Line Items]
Goodwill	356	357
Additions		0
Translation adjustments	(6)	(1)
Goodwill written off from sale of businesses	0
Goodwill	$ 350	$ 356

XML

Retirement Benefits Plans Retirement Benefits Plans - Defined Contribution Plans (Details 13) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Defined Contribution Plans [Line Items]
Employer contributions to defined contribution plans	$ 141	$ 121	$ 74

XML

Debt Bridge Facility (Details) (Bridge Facility [Member], USD $)	0 Months Ended	12 Months Ended
	Nov. 30, 2012	Dec. 31, 2012	Nov. 30, 2012	May 21, 2012
Bridge Facility [Member]
Short-term Debt [Line Items]
Borrowing on Bridge Facility	$ 1,669,000,000		$ 1,669,000,000
Bridge facility maximum borrowing capacity				6,750,000,000
Bridge Facility, Maximum Duration	364 days
Deferred finance fees		69,000,000
Amortization of deferred financing fees		$ 68,000,000

XML

Income Taxes Income Tax Loss and Tax Credit Carryforwards, State and Local, Net of Federal Tax Effect, By Expiration Dates (Details) (USD $) In Millions, unless otherwise specified	Dec. 31, 2014
2015 through 2019 [Member]
Income Tax Loss and Tax Credit Carryforwards, State and Local, Net of Federal Tax Effect [Line Items]
United States state and local deferred income tax assets for income tax loss carryforwards - net of federal tax	$ 6
2015 through 2019 [Member] | State and Local Jurisdiction [Member]
Income Tax Loss and Tax Credit Carryforwards, State and Local, Net of Federal Tax Effect [Line Items]
United States and local income tax credit carryforwards - net of federal tax effect	10
2020 through 2024 [Member]
Income Tax Loss and Tax Credit Carryforwards, State and Local, Net of Federal Tax Effect [Line Items]
United States state and local deferred income tax assets for income tax loss carryforwards - net of federal tax	18
2020 through 2024 [Member] | State and Local Jurisdiction [Member]
Income Tax Loss and Tax Credit Carryforwards, State and Local, Net of Federal Tax Effect [Line Items]
United States and local income tax credit carryforwards - net of federal tax effect	9
2025 through 2029 [Member]
Income Tax Loss and Tax Credit Carryforwards, State and Local, Net of Federal Tax Effect [Line Items]
United States state and local deferred income tax assets for income tax loss carryforwards - net of federal tax	12
2025 through 2029 [Member] | State and Local Jurisdiction [Member]
Income Tax Loss and Tax Credit Carryforwards, State and Local, Net of Federal Tax Effect [Line Items]
United States and local income tax credit carryforwards - net of federal tax effect	6
2030 through 2034 [Member]
Income Tax Loss and Tax Credit Carryforwards, State and Local, Net of Federal Tax Effect [Line Items]
United States state and local deferred income tax assets for income tax loss carryforwards - net of federal tax	8
2030 through 2034 [Member] | State and Local Jurisdiction [Member]
Income Tax Loss and Tax Credit Carryforwards, State and Local, Net of Federal Tax Effect [Line Items]
United States and local income tax credit carryforwards - net of federal tax effect	2
2035 through 2039 [Member]
Income Tax Loss and Tax Credit Carryforwards, State and Local, Net of Federal Tax Effect [Line Items]
United States state and local deferred income tax assets for income tax loss carryforwards - net of federal tax	0
2035 through 2039 [Member] | State and Local Jurisdiction [Member]
Income Tax Loss and Tax Credit Carryforwards, State and Local, Net of Federal Tax Effect [Line Items]
United States and local income tax credit carryforwards - net of federal tax effect	5
Not subject to expiration [Member]
Income Tax Loss and Tax Credit Carryforwards, State and Local, Net of Federal Tax Effect [Line Items]
United States state and local deferred income tax assets for income tax loss carryforwards - net of federal tax	0
Not subject to expiration [Member] | State and Local Jurisdiction [Member]
Income Tax Loss and Tax Credit Carryforwards, State and Local, Net of Federal Tax Effect [Line Items]
United States and local income tax credit carryforwards - net of federal tax effect	0
Valuation allowance [Member]
Income Tax Loss and Tax Credit Carryforwards, State and Local, Net of Federal Tax Effect [Line Items]
United States state and local deferred income tax assets for income tax loss carryforwards - net of federal tax	(18)
Valuation allowance [Member] | State and Local Jurisdiction [Member]
Income Tax Loss and Tax Credit Carryforwards, State and Local, Net of Federal Tax Effect [Line Items]
United States and local income tax credit carryforwards - net of federal tax effect	$ (18)

XML

Condensed Consolidating Financial Statements Condensed Consolidating Balance Sheets (Details) (USD $) In Millions, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012	Nov. 20, 2012	Dec. 31, 2011
Condensed Consolidating Balance Sheets [Line Items]
Cash	$ 781	$ 915	$ 577		$ 385
Short-term investments	245	794
Accounts receivable - net	3,667	3,648
Intercompany accounts receivable	0	0
Inventory	2,428	2,382
Prepaid expenses and other current assets	979	992
Total current assets	8,100	8,731
Property, plant and equipment - net	3,750	3,833	3,786
Goodwill	13,893	14,495	14,443
Other intangible assets	6,556	7,186	7,580
Deferred income taxes	228	240
Investment in subsidiaries	0	0
Intercompany loans receivable	0	0
Other assets	1,002	1,006
Total assets	33,529	35,491	35,810
Short-term debt	2	13
Current portion of long-term debt	1,008	567
Accounts payable	1,940	1,960
Intercompany accounts payable	0	0
Accrued compensation	420	461
Other current liabilities	1,985	1,913
Total current liabilities	5,355	4,914
Long-term debt	8,024	8,969
Pension liabilities	1,812	1,465
Other postretirement benefits liabilities	513	668
Deferred income taxes	901	1,313
Intercompany loans payable	0	0
Other noncurrent liabilities	1,085	1,299
Total noncurrent liabilities	12,335	13,714
Eaton shareholders' equity	15,786	16,791
Noncontrolling interests	53	72
Total equity	15,839	16,863	15,178		7,492
Total liabilities and equity	33,529	35,491
Issuance of senior notes				4,900
Eaton and certain other of Eaton's principal 100% owned subsidiaries full and unconditional guarantee of the Senior Notes, on a joint and several basis				100.00%
Eaton Corporation plc [Member]
Condensed Consolidating Balance Sheets [Line Items]
Cash	1	3	7		0
Short-term investments	0	0
Accounts receivable - net	0	0
Intercompany accounts receivable	2	5
Inventory	0	0
Prepaid expenses and other current assets	0	0
Total current assets	3	8
Property, plant and equipment - net	0	0
Goodwill	0	0
Other intangible assets	0	0
Deferred income taxes	0	0
Investment in subsidiaries	26,612	24,940
Intercompany loans receivable	0	0
Other assets	0	0
Total assets	26,615	24,948
Short-term debt	0	0
Current portion of long-term debt	0	0
Accounts payable	0	0
Intercompany accounts payable	117	4
Accrued compensation	0	0
Other current liabilities	1	5
Total current liabilities	118	9
Long-term debt	0	0
Pension liabilities	0	0
Other postretirement benefits liabilities	0	0
Deferred income taxes	0	0
Intercompany loans payable	10,711	8,148
Other noncurrent liabilities	0	0
Total noncurrent liabilities	10,711	8,148
Eaton shareholders' equity	15,786	16,791
Noncontrolling interests	0	0
Total equity	15,786	16,791
Total liabilities and equity	26,615	24,948
Eaton Corporation [Member]
Condensed Consolidating Balance Sheets [Line Items]
Cash	173	51	54		120
Short-term investments	0	0
Accounts receivable - net	500	473
Intercompany accounts receivable	759	471
Inventory	397	344
Prepaid expenses and other current assets	464	458
Total current assets	2,293	1,797
Property, plant and equipment - net	972	982
Goodwill	1,355	1,382
Other intangible assets	196	211
Deferred income taxes	889	839
Investment in subsidiaries	12,179	4,743
Intercompany loans receivable	7,542	8,019
Other assets	533	450
Total assets	25,959	18,423
Short-term debt	0	0
Current portion of long-term debt	702	552
Accounts payable	475	440
Intercompany accounts payable	4,125	3,734
Accrued compensation	112	140
Other current liabilities	674	547
Total current liabilities	6,088	5,413
Long-term debt	7,079	7,693
Pension liabilities	726	546
Other postretirement benefits liabilities	283	402
Deferred income taxes	0	0
Intercompany loans payable	2,723	2,113
Other noncurrent liabilities	457	652
Total noncurrent liabilities	11,268	11,406
Eaton shareholders' equity	8,603	1,604
Noncontrolling interests	0	0
Total equity	8,603	1,604
Total liabilities and equity	25,959	18,423
Guarantors [Member]
Condensed Consolidating Balance Sheets [Line Items]
Cash	13	10	14		3
Short-term investments	1	134
Accounts receivable - net	955	922
Intercompany accounts receivable	3,820	3,369
Inventory	637	609
Prepaid expenses and other current assets	171	175
Total current assets	5,597	5,219
Property, plant and equipment - net	756	761
Goodwill	6,256	6,294
Other intangible assets	3,811	3,996
Deferred income taxes	10	3
Investment in subsidiaries	58,687	38,039
Intercompany loans receivable	2,249	2,312
Other assets	141	186
Total assets	77,507	56,810
Short-term debt	0	0
Current portion of long-term debt	304	0
Accounts payable	340	380
Intercompany accounts payable	3,449	3,266
Accrued compensation	59	37
Other current liabilities	340	400
Total current liabilities	4,492	4,083
Long-term debt	932	1,266
Pension liabilities	183	131
Other postretirement benefits liabilities	136	171
Deferred income taxes	1,160	1,303
Intercompany loans payable	36,162	18,253
Other noncurrent liabilities	183	161
Total noncurrent liabilities	38,756	21,285
Eaton shareholders' equity	34,259	31,442
Noncontrolling interests	0	0
Total equity	34,259	31,442
Total liabilities and equity	77,507	56,810
Other Subsidiaries [Member]
Condensed Consolidating Balance Sheets [Line Items]
Cash	594	851	502		262
Short-term investments	244	660
Accounts receivable - net	2,212	2,253
Intercompany accounts receivable	4,101	4,469
Inventory	1,445	1,466
Prepaid expenses and other current assets	340	350
Total current assets	8,936	10,049
Property, plant and equipment - net	2,022	2,090
Goodwill	6,282	6,819
Other intangible assets	2,549	2,979
Deferred income taxes	137	145
Investment in subsidiaries	9,145	1,576
Intercompany loans receivable	40,635	18,822
Other assets	328	370
Total assets	70,034	42,850
Short-term debt	2	13
Current portion of long-term debt	2	15
Accounts payable	1,125	1,140
Intercompany accounts payable	991	1,310
Accrued compensation	249	284
Other current liabilities	984	965
Total current liabilities	3,353	3,727
Long-term debt	13	16
Pension liabilities	903	788
Other postretirement benefits liabilities	94	95
Deferred income taxes	549	757
Intercompany loans payable	830	639
Other noncurrent liabilities	445	486
Total noncurrent liabilities	2,834	2,781
Eaton shareholders' equity	63,802	36,276
Noncontrolling interests	45	66
Total equity	63,847	36,342
Total liabilities and equity	70,034	42,850
Consolidating Adjustments [Member]
Condensed Consolidating Balance Sheets [Line Items]
Cash	0	0	0		0
Short-term investments	0	0
Accounts receivable - net	0	0
Intercompany accounts receivable	(8,682)	(8,314)
Inventory	(51)	(37)
Prepaid expenses and other current assets	4	9
Total current assets	(8,729)	(8,342)
Property, plant and equipment - net	0	0
Goodwill	0	0
Other intangible assets	0	0
Deferred income taxes	(808)	(747)
Investment in subsidiaries	(106,623)	(69,298)
Intercompany loans receivable	(50,426)	(29,153)
Other assets	0	0
Total assets	(166,586)	(107,540)
Short-term debt	0	0
Current portion of long-term debt	0	0
Accounts payable	0	0
Intercompany accounts payable	(8,682)	(8,314)
Accrued compensation	0	0
Other current liabilities	(14)	(4)
Total current liabilities	(8,696)	(8,318)
Long-term debt	0	(6)
Pension liabilities	0	0
Other postretirement benefits liabilities	0	0
Deferred income taxes	(808)	(747)
Intercompany loans payable	(50,426)	(29,153)
Other noncurrent liabilities	0	0
Total noncurrent liabilities	(51,234)	(29,906)
Eaton shareholders' equity	(106,664)	(69,322)
Noncontrolling interests	8	6
Total equity	(106,656)	(69,316)
Total liabilities and equity	$ (166,586)	$ (107,540)

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Acquisition Integration Charges and Transaction Costs (Details) (USD $) In Millions, except Per Share data, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Acquisition Integration Charges and Transaction Costs [Line Items]
Total acquisition integration charges and transaction costs before income taxes	$ 154	$ 163	$ 222
Total acquisition integration charges and transaction costs after income taxes	102	110	167
Per ordinary share - diluted	$ 0.21	$ 0.23	$ 0.48
Acquisition Integration Charges
Business segment acquisition integration pretax charges	129	117	33
Total acquisition integration charges	154	154	44
Transaction costs [Abstract]
Corporate	0	8	106
Financing fees	0	1	72
Total transaction costs	0	9	178
Electrical Products [Member]
Acquisition Integration Charges
Business segment acquisition integration pretax charges	66	44	4
Electrical Systems and Services [Member]
Acquisition Integration Charges
Business segment acquisition integration pretax charges	51	37	13
Hydraulics [Member]
Acquisition Integration Charges
Business segment acquisition integration pretax charges	12	36	16
Total business segments [Member]
Acquisition Integration Charges
Business segment acquisition integration pretax charges	129	117	33
Corporate [Member]
Acquisition Integration Charges
Corporate acquisition integration charges	$ 25	$ 37	$ 11

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Equity-Based Compensation Equity-Based Compensation (Tables)

12 Months Ended

Dec. 31, 2014

Equity-based compensation

Summary of RSU and RSA activity

A summary of the RSU and RSA activity for 2014 follows:

(Restricted stock units and awards in millions)	Number of restricted stock units and awards		Weighted-average fair value per unit and award
Non-vested at January 1	3.4		$	51.37
Granted	1.0		71.54
Vested	(1.4	)	47.69
Forfeited	(0.2	)	59.01
Non-vested at December 31	2.8		$	60.11

Information Related to RSUs and RSAs

Information related to RSUs and RSAs follows:

	2014		2013		2012
Pretax expense for RSUs and RSAs	$	81	$	69	$	46
After-tax expense for RSUs and RSAs	53		45		30
Fair value of vested RSUs and RSAs	105		82		126

Assumptions used in determining fair value of stock options

A summary of the assumptions used in determining the fair value of stock options follows:

	2014			2013			2012
Expected volatility	34		%	36		%	35		%
Expected option life in years	5.5			5.5			5.5
Expected dividend yield	2.4		%	2.0		%	2.0		%
Risk-free interest rate	1.7 to 1.5%			1.5 to 0.8%			1.0 to 0.9%
Weighted-average fair value of stock options granted	$	19.46		$	17.49		$	14.08

Summary of stock option activity

A summary of stock option activity follows:

(Options in millions)	Weighted-average exercise price per option		Options		Weighted-average remaining contractual life in years	Aggregate intrinsic value
Outstanding at January 1, 2014	$	43.43	7.9
Granted	75.25		0.6
Exercised	37.75		(1.5	)
Forfeited and canceled	59.33		—
Outstanding at December 31, 2014	$	47.30	7.0		4.3	$	148.9
Exercisable at December 31, 2014	$	42.74	5.7		3.3	$	142.7
Reserved for future grants at December 31, 2014			14.3

Information related to stock options

Information related to stock options follows:

	2014		2013		2012
Pretax expense for stock options	$	12	$	11	$	7
After-tax expense for stock options	8		7		5
Proceeds from stock options exercised	54		121		95
Income tax benefit related to stock options exercised
Tax benefit classified in operating activities in the Consolidated    Statements of Cash Flows	4		3		5
Excess tax benefit classified in financing activities in the    Consolidated Statements of Cash Flows	15		22		13
Intrinsic value of stock options exercised	55		102		60
Total fair value of stock options vesting	$	12	$	11	$	7
Stock options exercised, in millions of options	1.501		3.565		3.099

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Income Taxes Income Tax Loss and Tax Credit Carryforwards, Non-United States Subsidiaries, By Expiration Dates (Details) (USD $) In Millions, unless otherwise specified	Dec. 31, 2014
2015 through 2019 [Member]
Income Tax Loss and Tax Credit Carryforwards, Non-United States Subsidiaries, By Expiration Dates [Line Items]
Non-United States income tax loss carryforwards	$ 135
Non-United States deferred income tax assets for income tax loss carryforwards	35
Non-United States income tax credit carryforwards	3
2020 through 2024 [Member]
Income Tax Loss and Tax Credit Carryforwards, Non-United States Subsidiaries, By Expiration Dates [Line Items]
Non-United States income tax loss carryforwards	165
Non-United States deferred income tax assets for income tax loss carryforwards	41
Non-United States income tax credit carryforwards	14
2025 through 2029 [Member]
Income Tax Loss and Tax Credit Carryforwards, Non-United States Subsidiaries, By Expiration Dates [Line Items]
Non-United States income tax loss carryforwards	38
Non-United States deferred income tax assets for income tax loss carryforwards	9
Non-United States income tax credit carryforwards	24
2030 through 2034 [Member]
Income Tax Loss and Tax Credit Carryforwards, Non-United States Subsidiaries, By Expiration Dates [Line Items]
Non-United States income tax loss carryforwards	18
Non-United States deferred income tax assets for income tax loss carryforwards	5
Non-United States income tax credit carryforwards	0
Not subject to expiration [Member]
Income Tax Loss and Tax Credit Carryforwards, Non-United States Subsidiaries, By Expiration Dates [Line Items]
Non-United States income tax loss carryforwards	9,290
Non-United States deferred income tax assets for income tax loss carryforwards	2,022
Non-United States income tax credit carryforwards	7
Valuation allowance [Member]
Income Tax Loss and Tax Credit Carryforwards, Non-United States Subsidiaries, By Expiration Dates [Line Items]
Non-United States income tax loss carryforwards	0
Non-United States deferred income tax assets for income tax loss carryforwards	(2,033)
Non-United States income tax credit carryforwards	$ (8)

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Income Taxes Income Tax (Benefit) Expense (Details) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Current Income Tax Expense (Benefit) [Abstract]
Total current income tax expense	$ 354	$ 357	$ 136
Deferred Income Tax Benefit [Abstract]
Total deferred income tax benefit	(396)	(346)	(105)
Income tax (benefit) expense	(42)	11	31
Ireland
Current Income Tax Expense (Benefit) [Abstract]
Ireland	(13)	17	0
Deferred Income Tax Benefit [Abstract]
Ireland	2	0	0
United States - Federal
Current Income Tax Expense (Benefit) [Abstract]
United States - Federal	87	89	1
Deferred Income Tax Benefit [Abstract]
United States - Federal	(224)	(295)	39
United States - State and local
Current Income Tax Expense (Benefit) [Abstract]
United States - State and local	41	7	5
Deferred Income Tax Benefit [Abstract]
United States - State and local	(49)	(23)	2
Foreign - other
Current Income Tax Expense (Benefit) [Abstract]
Foreign - other	239	244	130
Deferred Income Tax Benefit [Abstract]
Foreign - other	$ (125)	$ (28)	$ (146)

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Equity-Based Compensation Stock Options Fair Value Assumptions (Details) (USD $)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Stock Options Fair Value Assumptions [Line Items]
Expected volatility	34.00%	36.00%	35.00%
Expected option life in years	5 years 6 months	5 years 6 months	5 years 6 months
Expected dividend yield	2.40%	2.00%	2.00%
Risk-free interest rate minimum	1.50%	0.80%	0.90%
Risk-free interest rate maximum	1.70%	1.50%	1.00%
Weighted-average fair value of stock options granted	$ 19.46	$ 17.49	$ 14.08
Stock option vesting period	3 years
Stock option expiration date after date of grant	10 years

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Retirement Benefits Plans - Obligations and Funded Status (Details) (USD $) In Millions, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Funded status
Fair value of plan assets	$ 4,621	$ 4,372
United States pension liabilities [Member]
Funded status
Fair value of plan assets	3,086	2,940	2,607
Benefit obligations	(4,047)	(3,625)	(3,817)
Funded status	(961)	(685)
Amounts recognized in the Consolidated Balance Sheets
Non-current assets	14	44
Current liabilities	(16)	(15)
Non-current liabilities	(959)	(714)
Total	(961)	(685)
Amounts recognized in Accumulated other comprehensive loss (pretax)
Net actuarial loss	1,377	1,051
Prior service cost (credit)	5	3
Total	1,382	1,054	1,621
Non-United States pension liabilities [Member]
Funded status
Fair value of plan assets	1,535	1,432	1,248
Benefit obligations	(2,337)	(2,127)	(2,017)
Funded status	(802)	(695)
Amounts recognized in the Consolidated Balance Sheets
Non-current assets	77	86
Current liabilities	(26)	(30)
Non-current liabilities	(853)	(751)
Total	(802)	(695)
Amounts recognized in Accumulated other comprehensive loss (pretax)
Net actuarial loss	695	515
Prior service cost (credit)	11	13
Total	706	528	559
Other postretirement liabilities [Member]
Funded status
Fair value of plan assets	116	138	146
Benefit obligations	(676)	(867)	(950)
Funded status	(560)	(729)
Amounts recognized in the Consolidated Balance Sheets
Non-current assets	0	0
Current liabilities	(47)	(61)
Non-current liabilities	(513)	(668)
Total	(560)	(729)
Amounts recognized in Accumulated other comprehensive loss (pretax)
Net actuarial loss	176	190
Prior service cost (credit)	(86)	(6)
Total	$ 90	$ 184	$ 262

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Income Taxes Components of current and long-term deferred income taxes (Details) (USD $) In Millions, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
Current assets and liabilities [Member]
Deferred Tax Assets, Tax Deferred Expense, Reserves and Accruals [Abstract]
Employee benefits	$ 148	$ 116
Depreciation and amortization	0	(2)
Other accruals and adjustments	476	497
Deferred Tax Assets, Net, Classification [Abstract]
United States federal income tax loss carryforwards	0	0
United States federal income tax credit carryforward	0	0
United States state and local tax loss carryforwards and tax credit carryforwards	0	0
Other foreign tax loss carryforward	0	0
Other foreign income tax credit carryforwards	0	0
Valuation allowance for income tax loss and income tax credit carryforwards	(24)	0
Other valuation allowance	(7)	(34)
Total deferred income taxes	593	577
Long-term assets and liabilities [Member]
Deferred Tax Assets, Tax Deferred Expense, Reserves and Accruals [Abstract]
Employee benefits	773	657
Depreciation and amortization	(2,010)	(2,294)
Other accruals and adjustments	282	368
Deferred Tax Assets, Net, Classification [Abstract]
United States federal income tax loss carryforwards	58	0
United States federal income tax credit carryforward	150	161
United States state and local tax loss carryforwards and tax credit carryforwards	76	73
Other foreign tax loss carryforward	2,112	1,708
Other foreign income tax credit carryforwards	49	63
Valuation allowance for income tax loss and income tax credit carryforwards	(2,134)	(1,738)
Other valuation allowance	(29)	(71)
Total deferred income taxes	$ (673)	$ (1,073)

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Eaton Shareholders' Equity Eaton Shareholders' Equity (Textuals) (Details)	0 Months Ended	12 Months Ended					0 Months Ended
	Sep. 28, 2011 USD ($)	Dec. 31, 2014 USD ($)	Dec. 31, 2013 USD ($)	Dec. 31, 2012 USD ($)	Dec. 31, 2014 EUR (€)	Oct. 22, 2013	Feb. 25, 2015 Subsequent Event [Member] USD ($)	Mar. 20, 2015 Subsequent Event [Member] USD ($)
Subsequent Event [Line Items]
Quarterly dividends payable, amount per share								$ 0.55
Quarterly dividends, per share, declared		$ 1.96	$ 1.68	$ 1.52			$ 0.55
Shareholders Equity Textuals Abstract
Ordinary shares authorized		750,000,000
Eaton Corporation plc ordinary share par value		$ 0.01		$ 0.01
Ordinary shares issued and outstanding		467,900,000	475,100,000
Deferred ordinary shares authorized		40,000
Deferred ordinary shares par value					€ 1.00
Deferred ordinary shares, shares issued and outstanding		40,000	40,000
Preferred A Shares authorized		10,000
Preferred A Shares par value		$ 1.00
Preferred A Shares, Shares Issued		10,000	10,000
Preferred A Shares, Shares Outstanding		10,000	10,000
Serial preferred shares authorized		10,000,000
Serial preferred share par value per share		$ 0.01
Serial preferred shares, shares issued and outstanding		0	0
Number of holders of record of Eaton ordinary shares		18,993
Number of current and former employees who were shareholders through various Eaton plans		26,059
Disclosure of Repurchase Agreements [Abstract]
2011 Retired Stock Repurchase Program, Number of Shares Authorized to be Repurchased	20,000,000
2011 share repurchase program, maximum aggregate purchase price of shares authorized	$ 1,250,000,000
2011 share repurchase progam, shares purchased				0
2013 share repurchase program, number of shares authorized to be repurchased						40,000,000
2013 stock repurchase program, authorized repurchase price as percent of Eaton closing share price, low range						70.00%
2013 stock repurchase program, authorized repurchase price as percent of Eaton closing share price, high range						120.00%
2013 share repurchase program, shares purchased - shares		9,600,000	0
2013 share repurchase program, shares purchased - cost		650,000,000
Employee Trust [Abstract]
Deferred compensation plan trust of shares and marketable secutities		$ 19,000,000	$ 24,000,000
Earnings Per Share, Diluted, Other Disclosures [Abstract]
Antidilutive securities excluded from computation of net income per ordinary share		500,000	200,000	2,200,000

XML

Income Taxes Income Taxes Textuals (Details) (USD $)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Income Taxes [Abstract]
Income tax (benefit) expense	$ (42,000,000)	$ 11,000,000	$ 31,000,000
Effective income tax (benefit) expense rate	(2.40%)	0.60%	2.50%
Net tax benefit of litigation settlements, related legal costs and gain on sale of the Aerospace businesses	7.60%
Undistributed earnings of United States and other foreign subsidiaries where no provision has been made	12,500,000,000
Unrecognized tax benefits netted against deferred tax asset for a loss or other carryforward under ASU 2013-11	146,000,000
Unrecognized tax benefits that would impact effective tax rate	371,000,000
Income tax examination, penalties and interest accrued	120,000,000	114,000,000
Recoverability of Deferred Income Tax Assets [Abstract]
Number of years of cumulative pretax income in a particular jurisdiction to determine deferred tax assets will not be recognized	P3Y
Number of years of cumulative pretax losses in particular jurisdiction to determine if deferred tax assets can be recognized	P3Y
Number of years estimated to resolve Brazilian tax assessment	10
2011 Notice [Member]
Income Taxes [Abstract]
IRS Statutory Notice of Deficiency proposed assessment of additional taxes	75,000,000
Penalties associated with IRS Statutory Notice of Deficiency proposed assessment	52,000,000
2014 Notice [Member]
Income Taxes [Abstract]
IRS Statutory Notice of Deficiency proposed assessment of additional taxes	190,000,000
Penalties associated with IRS Statutory Notice of Deficiency proposed assessment	72,000,000
2010 Notice [Member]
Income Taxes [Abstract]
Brazil tax assessment, plus interest and penalties	64,000,000
2014 Notice [Member]
Income Taxes [Abstract]
Brazil tax assessment, plus interest and penalties	$ 50,000,000

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Restricted Stock Units and Awards Activity (Details) (USD $) In Millions, except Per Share data, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Equity-based compensation
Compensation expense not yet recognized related to non-vested RSUs and RSAs	$ 93.9
Weighted average period for total compensation expense not yet recognized	2.3
Excess tax benefit for equity-based compensation	$ 5	$ 10	$ 18
Restricted Stock Units (RSUs) [Member]
Equity-based compensation
Non-vested at January 1	3.4
Granted	1.0
Vested	(1.4)
Forfeited	(0.2)
Non-vested at December 31	2.8
Non-vested at January 1	$ 51.37
Granted	$ 71.54
Vested	$ 47.69
Forfeited	$ 59.01
Non-vested at December 31	$ 60.11

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Income Taxes Operating Loss and Tax Credit Carryforwards, United States, By Expiration Dates (Details) (USD $) In Millions, unless otherwise specified	Dec. 31, 2014
2015 through 2019 [Member]
Operating Loss and Tax Credit Carry Forward [Line Items]
United States federal income tax loss carryforwards	$ 0
2015 through 2019 [Member] | Before ASU 2013-11 [Member]
Operating Loss and Tax Credit Carry Forward [Line Items]
United States federal income tax credit carryforwards	0
2015 through 2019 [Member] | After ASU 2013-11 [Member]
Operating Loss and Tax Credit Carry Forward [Line Items]
United States federal income tax credit carryforwards	0
2015 through 2019 [Member] | Before ASU 2013-11 [Member]
Operating Loss and Tax Credit Carry Forward [Line Items]
United States federal deferred income tax assets for income tax loss carryforwards	0
2015 through 2019 [Member] | After ASU 2013-11 [Member]
Operating Loss and Tax Credit Carry Forward [Line Items]
United States federal deferred income tax assets for income tax loss carryforwards	0
2020 through 2024 [Member]
Operating Loss and Tax Credit Carry Forward [Line Items]
United States federal income tax loss carryforwards	0
2020 through 2024 [Member] | Before ASU 2013-11 [Member]
Operating Loss and Tax Credit Carry Forward [Line Items]
United States federal income tax credit carryforwards	64
2020 through 2024 [Member] | After ASU 2013-11 [Member]
Operating Loss and Tax Credit Carry Forward [Line Items]
United States federal income tax credit carryforwards	64
2020 through 2024 [Member] | Before ASU 2013-11 [Member]
Operating Loss and Tax Credit Carry Forward [Line Items]
United States federal deferred income tax assets for income tax loss carryforwards	0
2020 through 2024 [Member] | After ASU 2013-11 [Member]
Operating Loss and Tax Credit Carry Forward [Line Items]
United States federal deferred income tax assets for income tax loss carryforwards	0
2025 through 2029 [Member]
Operating Loss and Tax Credit Carry Forward [Line Items]
United States federal income tax loss carryforwards	31
2025 through 2029 [Member] | Before ASU 2013-11 [Member]
Operating Loss and Tax Credit Carry Forward [Line Items]
United States federal income tax credit carryforwards	38
2025 through 2029 [Member] | After ASU 2013-11 [Member]
Operating Loss and Tax Credit Carry Forward [Line Items]
United States federal income tax credit carryforwards	37
2025 through 2029 [Member] | Before ASU 2013-11 [Member]
Operating Loss and Tax Credit Carry Forward [Line Items]
United States federal deferred income tax assets for income tax loss carryforwards	11
2025 through 2029 [Member] | After ASU 2013-11 [Member]
Operating Loss and Tax Credit Carry Forward [Line Items]
United States federal deferred income tax assets for income tax loss carryforwards	11
2030 through 2034 [Member]
Operating Loss and Tax Credit Carry Forward [Line Items]
United States federal income tax loss carryforwards	4
2030 through 2034 [Member] | Before ASU 2013-11 [Member]
Operating Loss and Tax Credit Carry Forward [Line Items]
United States federal income tax credit carryforwards	86
2030 through 2034 [Member] | After ASU 2013-11 [Member]
Operating Loss and Tax Credit Carry Forward [Line Items]
United States federal income tax credit carryforwards	28
2030 through 2034 [Member] | Before ASU 2013-11 [Member]
Operating Loss and Tax Credit Carry Forward [Line Items]
United States federal deferred income tax assets for income tax loss carryforwards	1
2030 through 2034 [Member] | After ASU 2013-11 [Member]
Operating Loss and Tax Credit Carry Forward [Line Items]
United States federal deferred income tax assets for income tax loss carryforwards	1
2035 through 2039 [Member]
Operating Loss and Tax Credit Carry Forward [Line Items]
United States federal income tax loss carryforwards	352
2035 through 2039 [Member] | Before ASU 2013-11 [Member]
Operating Loss and Tax Credit Carry Forward [Line Items]
United States federal income tax credit carryforwards	21
2035 through 2039 [Member] | After ASU 2013-11 [Member]
Operating Loss and Tax Credit Carry Forward [Line Items]
United States federal income tax credit carryforwards	21
2035 through 2039 [Member] | Before ASU 2013-11 [Member]
Operating Loss and Tax Credit Carry Forward [Line Items]
United States federal deferred income tax assets for income tax loss carryforwards	101
2035 through 2039 [Member] | After ASU 2013-11 [Member]
Operating Loss and Tax Credit Carry Forward [Line Items]
United States federal deferred income tax assets for income tax loss carryforwards	46
Not subject to expiration [Member]
Operating Loss and Tax Credit Carry Forward [Line Items]
United States federal income tax loss carryforwards	0
Not subject to expiration [Member] | Before ASU 2013-11 [Member]
Operating Loss and Tax Credit Carry Forward [Line Items]
United States federal income tax credit carryforwards	32
Not subject to expiration [Member] | After ASU 2013-11 [Member]
Operating Loss and Tax Credit Carry Forward [Line Items]
United States federal income tax credit carryforwards	0
Not subject to expiration [Member] | Before ASU 2013-11 [Member]
Operating Loss and Tax Credit Carry Forward [Line Items]
United States federal deferred income tax assets for income tax loss carryforwards	0
Not subject to expiration [Member] | After ASU 2013-11 [Member]
Operating Loss and Tax Credit Carry Forward [Line Items]
United States federal deferred income tax assets for income tax loss carryforwards	0
Valuation allowance [Member]
Operating Loss and Tax Credit Carry Forward [Line Items]
United States federal income tax loss carryforwards	0
Valuation allowance [Member] | Before ASU 2013-11 [Member]
Operating Loss and Tax Credit Carry Forward [Line Items]
United States federal income tax credit carryforwards	(69)
Valuation allowance [Member] | After ASU 2013-11 [Member]
Operating Loss and Tax Credit Carry Forward [Line Items]
United States federal income tax credit carryforwards	(69)
Valuation allowance [Member] | Before ASU 2013-11 [Member]
Operating Loss and Tax Credit Carry Forward [Line Items]
United States federal deferred income tax assets for income tax loss carryforwards	(12)
Valuation allowance [Member] | After ASU 2013-11 [Member]
Operating Loss and Tax Credit Carry Forward [Line Items]
United States federal deferred income tax assets for income tax loss carryforwards	$ (12)

XML

Commitments and Contingencies (Details) In Millions, unless otherwise specified	1 Months Ended	3 Months Ended		12 Months Ended				0 Months Ended
	Dec. 31, 2012 USD ($)	Dec. 31, 2010 USD ($)	Dec. 31, 2010 BRL	Dec. 31, 2014 USD ($)	Dec. 31, 2014 BRL	Dec. 31, 2013 USD ($)	Dec. 31, 2012 USD ($)	Jul. 16, 2014 Meritor [Member] USD ($)	Jun. 23, 2014 Meritor [Member] USD ($)	Jul. 08, 2014 Triumph [Member] USD ($)	Jun. 18, 2014 Triumph [Member] USD ($)
Loss Contingency Accrual [Roll Forward]
Raysul total loss contingency accrual				$ 31	83
Raysul loss contingency provision		23	60	8	23
Loss Contingencies [Line Items]
Loss Contingency, Loss in Period									500.0		147.5
Litigation Settlement, Amount								500.0		147.5
Environmental contingencies
Number of environmental remediation sites world wide				150	150
Accrual for environmental loss contingencies				140		149
Current and long-term warranty accruals [Table]
Balance at January 1				189		185	158
Provision				125		107	85
Settled				(120)		(99)	(84)
Other				19		(4)	26
Balance at December 31	185			213		189	185
Product Warranty Accruals - Other, related to the acquisition of Cooper Industries plc	24
Minimum rental commitments under noncancelable operating leases
2015				153
2016				115
2017				83
2018				59
2019				34
Thereafter				60
Total noncancelable lease commitments				504
Summary of Rental Expense
Rental expense				$ 244		$ 241	$ 199

XML

Acquisitions and Sales of Businesses (Tables)

12 Months Ended

Dec. 31, 2014

Business Combinations [Abstract]

Fair Value of Consideration Transferred [Table Text Block]

The total purchase price for the acquisition of Cooper was $13,192, comprised of Eaton share consideration valued at $6,649 and cash consideration for Cooper shares of $6,474 and to settle certain Cooper equity-based compensation plans of $69, as follows:

Cooper shares outstanding as of November 30, 2012	163.6
Cooper shares issued pursuant to conversion of stock options and share units outstanding under    Cooper equity-based compensation plans	1.8
Total Cooper shares and share equivalents prior to transaction	165.4
Exchange ratio per share	0.77479
Total Eaton shares issued	128.1
Weighted-average Eaton Corporation per share price on November 30, 2012	$	51.91
Total value of Eaton shares issued	$	6,649
Total cash consideration paid at $39.15 per Cooper share and share equivalent	6,474
Total cash consideration paid for equity-based compensation plans	69
Total consideration	$	13,192

Fair Values of Assets Acquired and Liabilities Assumed [Table Text Block]

	November 30, 2012 (as previously reported)			Adjustments			November 30, 2012 (final adjusted)
Working capital accounts (1)	$	2,304		$	(18	)	$	2,286
Prepaid expenses and other current assets	204			69			273
Property, plant and equipment	885			(40		)	845
Investment in Apex Tool Group, LLC	807			(7		)	800
Intangible assets	5,250			119			5,369
Other assets	35			30			65
Debt	(1,221		)	—			(1,221		)
Accounts payable	(519		)	3			(516		)
Other current liabilities	(673		)	(206		)	(879		)
Other noncurrent liabilities	(2,185		)	(177		)	(2,362		)
Total identifiable net assets	4,887			(227		)	4,660
Goodwill	8,305			227			8,532
Total consideration	$	13,192		$	—		$	13,192
(1) Working capital accounts include Cash, Short-term investments, Accounts receivable and Inventory.

Business Acquisition, Pro Forma Information [Table Text Block]

The following unaudited pro forma information gives effect to Eaton's acquisition of Cooper as if the acquisition had occurred on January 1, 2012 and Cooper had been included in Eaton's consolidated results of operations for the year ended December 31, 2012.

	2012
Net sales	$	21,792
Net income from continuing operations attributable to Eaton ordinary shareholders	1,695
Diluted earnings per share from continuing operations	$	3.54

Annual Sales of Acquired Entities From Previous Periods [TableText Block]

These transactions, and the related annual sales prior to acquisition, are summarized below:

Acquired businesses	Date of transaction	Business segment	Annual sales
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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Goodwill and Other Intangible Assets Intangible Assets Amortization Expense (Details) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2014
Finite lived intangible assets amortization expense [Line Items]
2014	$ 424
2015	410
2016	397
2017	387
2018	367
2019	$ 360

XML

Acquisitions and Sales of Businesses (Details) (USD $)	0 Months Ended		12 Months Ended
	Feb. 01, 2013	May 09, 2014	Dec. 31, 2011	Sep. 30, 2012	Dec. 31, 2012	Nov. 30, 2012
Business Acquisition [Line Items]
Business acquisitions, combined purchase prices					$ 13,796,000,000
Purchase price of Cooper						13,192,000,000
Cooper shareholders receipt of cash per ordinary share of Cooper Industries plc						39.15
Cooper shareholder % receipt of one Eaton share for one ordinary share of Cooper Industries plc						77.479%
Former Eaton Corporation shareholders ownership of Eaton after Eaton Corporation's acquisition of Cooper						73.00%
Former Cooper shareholders ownership of Eaton after Eaton Corporation's acquisition of Cooper						27.00%
Sale of Apex to Bain Capital by Cooper and Danaher	1,600,000,000
Aerospace Power Distribution Management Solutions and Integrated Cockpit Solutions businesses [Member] | Aerospace [Member]
Business Acquisition [Line Items]
Agreement to sell the Aerospace Power Distribution Management Solutions and Integrated Cockpit Solutions businesses to Safran USA Inc.		270,000,000
Gain on sale of businesses, pre-tax		154,000,000
Cooper [Member] | Electrical Systems and Services; Electrical Products [Member]
Business Acquisition [Line Items]
Revenue reported for last annual period of acquired entity			5,409,000,000
Rolec Comercial e Industrial S.A. [Domain] | Electrical Systems and Services [Member]
Business Acquisition [Line Items]
Revenue reported for last annual period of acquired entity				85,000,000
Jeil Hydraulics Co., Ltd. [Member] | Hydraulics [Member]
Business Acquisition [Line Items]
Revenue reported for last annual period of acquired entity			189,000,000
Polimer Kaucuk Sanayi ve Pazarlama A.S. [Domain] | Hydraulics [Member]
Business Acquisition [Line Items]
Revenue reported for last annual period of acquired entity			335,000,000
Gycom Electrical Low-Voltage Power Distribution, Control and Automation [Domain] | Electrical Systems and Services [Member]
Business Acquisition [Line Items]
Revenue reported for last annual period of acquired entity			$ 24,000,000

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Income Taxes Worldwide Income Tax Payments (Details) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Worldwide Income Tax Payments [Line Items]
Income taxes paid	$ 258	$ 272	$ 254

XML

Amounts Recognized in Accumulated Other Comprehensive Loss (Details) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Derivative Instruments and Hedging Activities (Textuals) [Abstract]
Eaton's target percentage of managing intercompany balance sheet exposure	100.00%
Cash Flow Hedging [Member]
Amounts recognized in accumulated other comprehensive income
Gain (loss) recognized in Accumulated other comprehensive loss	$ (3)	$ 6
Gain (loss) reclassified from Accumulated other comprehensive loss	5	0
Floating-to-fixed interest rate swaps | Cash Flow Hedging [Member]
Amounts recognized in accumulated other comprehensive income
Gain (loss) recognized in Accumulated other comprehensive loss	0	0
Floating-to-fixed interest rate swaps | Interest expense - net [Member] | Cash Flow Hedging [Member]
Amounts recognized in accumulated other comprehensive income
Gain (loss) reclassified from Accumulated other comprehensive loss	(1)	(1)
Currency exchange contracts | Cash Flow Hedging [Member]
Amounts recognized in accumulated other comprehensive income
Gain (loss) recognized in Accumulated other comprehensive loss	(3)	6
Currency exchange contracts | Cost of products sold [Member] | Cash Flow Hedging [Member]
Amounts recognized in accumulated other comprehensive income
Gain (loss) reclassified from Accumulated other comprehensive loss	6	2
Commodity contracts | Cash Flow Hedging [Member]
Amounts recognized in accumulated other comprehensive income
Gain (loss) recognized in Accumulated other comprehensive loss	0	0
Commodity contracts | Cost of products sold [Member] | Cash Flow Hedging [Member]
Amounts recognized in accumulated other comprehensive income
Gain (loss) reclassified from Accumulated other comprehensive loss	$ 0	$ (1)

XML

Business Segment and Geographic Region Information (Tables)

12 Months Ended

Dec. 31, 2014

Segment Reporting [Abstract]

Business Segment Information - Net sales, Segment operating profit and Corporate

	2014			2013			2012
Net sales
Electrical Products	$	7,254		$	7,026		$	3,846
Electrical Systems and Services	6,457			6,430			3,872
Hydraulics	2,975			2,981			2,960
Aerospace	1,860			1,774			1,719
Vehicle	4,006			3,835			3,914
Total net sales	$	22,552		$	22,046		$	16,311
Segment operating profit
Electrical Products	$	1,184		$	1,090		$	640
Electrical Systems and Services	843			889			424
Hydraulics	367			355			369
Aerospace	273			252			213
Vehicle	645			592			570
Total segment operating profit	3,312			3,178			2,216
Corporate
Litigation settlements	(644		)	—			—
Amortization of intangible assets	(431		)	(437		)	(195		)
Interest expense - net	(227		)	(271		)	(208		)
Pension and other postretirement benefits expense	(138		)	(183		)	(162		)
Inventory step-up adjustment	—			(34		)	(42		)
Other corporate expense - net	(111		)	(369		)	(358		)
Income before income taxes	1,761			1,884			1,251
Income tax (benefit) expense	(42		)	11			31
Net income	1,803			1,873			1,220
Less net income for noncontrolling interests	(10		)	(12		)	(3		)
Net income attributable to Eaton ordinary shareholders	$	1,793		$	1,861		$	1,217

Business Segment Information - Acquisition integration charges

Business segment operating profit was reduced by acquisition integration charges as follows:

	2014		2013		2012
Electrical Products	$	66	$	44	$	4
Electrical Systems and Services	51		37		13
Hydraulics	12		36		16
Total	$	129	$	117	$	33

Business Segment Information - Identifiable assets, Capital expenditures for property, plant, and equipment, and Depreciation of property, plant, and equipment

	2014		2013		2012
Identifiable assets
Electrical Products	$	3,012	$	3,204	$	3,338
Electrical Systems and Services	2,512		2,683		2,408
Hydraulics	1,315		1,362		1,426
Aerospace	832		852		806
Vehicle	1,668		1,716		1,698
Total identifiable assets	9,339		9,817		9,676
Goodwill	13,893		14,495		14,443
Other intangible assets	6,556		7,186		7,580
Corporate	3,741		3,993		4,111
Total assets	$	33,529	$	35,491	$	35,810
Capital expenditures for property, plant and equipment
Electrical Products	$	170	$	152	$	108
Electrical Systems and Services	147		113		47
Hydraulics	79		80		60
Aerospace	28		29		27
Vehicle	160		161		148
Total	584		535		390
Corporate	48		79		203
Total expenditures for property, plant and equipment	$	632	$	614	$	593
Depreciation of property, plant and equipment
Electrical Products	$	148	$	151	$	78
Electrical Systems and Services	90		86		42
Hydraulics	67		65		61
Aerospace	28		27		26
Vehicle	130		133		136
Total	463		462		343
Corporate	51		54		38
Total depreciation of property, plant and equipment	$	514	$	516	$	381

Geographic Region Information - Net sales and long-lived assets

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

	2014		2013		2012
Net sales
United States	$	11,701	$	11,092	$	7,789
Canada	1,113		1,154		918
Latin America	1,988		2,113		1,588
Europe	5,074		5,112		3,997
Asia Pacific	2,676		2,575		2,019
Total	$	22,552	$	22,046	$	16,311
Long-lived assets
United States	$	1,988	$	1,966	$	1,914
Canada	25		28		33
Latin America	306		331		346
Europe	799		856		845
Asia Pacific	632		652		648
Total	$	3,750	$	3,833	$	3,786

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Debt Summary of Long-term Debt (Details) (USD $) In Millions, unless otherwise specified	12 Months Ended			0 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012	Mar. 20, 2014	Jun. 16, 2014	Nov. 20, 2012
Long-term Debt, Fiscal Year Maturity [Abstract]
Long-term Debt, Maturities, Repayments of Principal in Next Twelve Months	$ 1,008
Long-term Debt, Maturities, Repayments of Principal in Year Two	242
Long-term Debt, Maturities, Repayments of Principal in Year Three	1,548
Long-term Debt, Maturities, Repayments of Principal in Year Four	570
Long-term Debt, Maturities, Repayments of Principal after Year Five	339
Debt Instrument [Line Items]
Long-term debt and current portion of long term debt	9,032	9,536
Current portion of long-term debt	1,008	567
Long-term debt less current portion	8,024	8,969
Repayments of Debt	582	1,096	1,324
Notes [Member] | Notes due 2014 [Member]
Debt Instrument [Line Items]
Notes	0	250
Debt Instrument, Interest Rate, Stated Percentage	5.95%	5.95%
Debt Instrument, Maturity Date	Mar. 20, 2014	Mar. 20, 2014
Repayments of Debt				250
Notes [Member] | Floating rate notes due 2014 [Member]
Debt Instrument [Line Items]
Floating rate notes	0	300
Floating rate notes	floating rate	floating rate
Debt Instrument, Maturity Date	Jun. 16, 2014	Jun. 16, 2014
Repayments of Debt					300
Notes [Member] | Notes due 2015 [Member]
Debt Instrument [Line Items]
Notes	100	100
Debt Instrument, Interest Rate, Stated Percentage	4.65%	4.65%
Debt Instrument, Maturity Date	Jun. 15, 2015	Jun. 15, 2015
Notes [Member] | Notes due 2017 [Member]
Debt Instrument [Line Items]
Notes	250	250
Debt Instrument, Interest Rate, Stated Percentage	5.30%	5.30%
Debt Instrument, Maturity Date	Mar. 15, 2017	Mar. 15, 2017
Related long term debt converted to floating interest rates by interest rate swaps	150
Notes [Member] | Notes due 2018 [Member]
Debt Instrument [Line Items]
Notes	450	450
Debt Instrument, Interest Rate, Stated Percentage	5.60%	5.60%
Debt Instrument, Maturity Date	May 15, 2018	May 15, 2018
Related long term debt converted to floating interest rates by interest rate swaps	415
Notes [Member] | Notes due 2019 [Member]
Debt Instrument [Line Items]
Notes	300	300
Debt Instrument, Interest Rate, Stated Percentage	6.95%	6.95%
Debt Instrument, Maturity Date	Mar. 20, 2019	Mar. 20, 2019
Related long term debt converted to floating interest rates by interest rate swaps	300
Notes [Member] | Notes due 2021 [Member]
Debt Instrument [Line Items]
Notes	300	300
Debt Instrument, Interest Rate, Stated Percentage	3.47%	3.47%
Debt Instrument, Maturity Date	Jun. 28, 2021	Jun. 28, 2021
Related long term debt converted to floating interest rates by interest rate swaps	200
Notes [Member] | Notes due 2023 [Member]
Debt Instrument [Line Items]
Notes	300	300
Debt Instrument, Interest Rate, Stated Percentage	3.68%	3.68%
Debt Instrument, Maturity Date	Jun. 28, 2023	Jun. 28, 2023
Related long term debt converted to floating interest rates by interest rate swaps	200
Notes [Member] | Notes due 2037 [Member]
Debt Instrument [Line Items]
Notes	240	240
Debt Instrument, Interest Rate, Stated Percentage	5.80%	5.80%
Debt Instrument, Maturity Date	Mar. 15, 2037	Mar. 15, 2037
Notes [Member] | Notes due from 2014 to 2035 [Member]
Debt Instrument [Line Items]
Notes	239	249
Related long term debt converted to floating interest rates by interest rate swaps	50
Notes ranging from 5.25% to 12.5%, Interest Rate, Stated Percentage Rate Range, Minimum	5.25%	5.25%
Notes ranging from 5.25% to 12.5%, Interest Rate, Stated Percentage Rate Range, Maximum	12.50%	12.50%
Notes maturing from 2014 to 2035, Maturity Date Range, Start	Mar. 20, 2014	Mar. 20, 2014
Notes maturing from 2014 to 2035, Maturity Date Range, End	Jun. 15, 2035	Jun. 15, 2035
Japanese Yen notes [Member] | Japanese Yen notes due 2018 [Member] | Non-derivative net investment hedge [Member]
Debt Instrument [Line Items]
Notes	84	95
Debt Instrument, Interest Rate, Stated Percentage	4.215%	4.215%
Debt Instrument, Maturity Date	Dec. 17, 2018	Dec. 17, 2018
Senior Notes [Member] | Senior notes due 2015 [Member]
Debt Instrument [Line Items]
Senior Notes	600	600
Debt Instrument, Interest Rate, Stated Percentage	0.95%	0.95%				0.95%
Debt Instrument, Maturity Date	Nov. 02, 2015	Nov. 02, 2015
Senior Notes [Member] | Senior notes due 2017 [Member]
Debt Instrument [Line Items]
Senior Notes	1,000	1,000
Debt Instrument, Interest Rate, Stated Percentage	1.50%	1.50%				1.50%
Debt Instrument, Maturity Date	Nov. 02, 2017	Nov. 02, 2017
Related long term debt converted to floating interest rates by interest rate swaps	650
Senior Notes [Member] | Senior notes due 2022 [Member]
Debt Instrument [Line Items]
Senior Notes	1,600	1,600
Debt Instrument, Interest Rate, Stated Percentage	2.75%	2.75%				2.75%
Debt Instrument, Maturity Date	Nov. 02, 2022	Nov. 02, 2022
Related long term debt converted to floating interest rates by interest rate swaps	1,250
Senior Notes [Member] | Senior notes due 2032 [Member]
Debt Instrument [Line Items]
Senior Notes	700	700
Debt Instrument, Interest Rate, Stated Percentage	4.00%	4.00%				4.00%
Debt Instrument, Maturity Date	Nov. 02, 2032	Nov. 02, 2032
Senior Notes [Member] | Senior notes due 2042 [Member]
Debt Instrument [Line Items]
Senior Notes	1,000	1,000
Debt Instrument, Interest Rate, Stated Percentage	4.15%	4.15%				4.15%
Debt Instrument, Maturity Date	Nov. 02, 2042	Nov. 02, 2042
Debenture [Member] | Debentures due 2015 [Member]
Debt Instrument [Line Items]
Long term debt debentures	300	300
Debt Instrument, Interest Rate, Stated Percentage	5.45%	5.45%
Debt Instrument, Maturity Date	Apr. 01, 2015	Apr. 01, 2015
Debenture [Member] | Debentures due 2016 [Member]
Debt Instrument [Line Items]
Long term debt debentures	240	240
Debt Instrument, Interest Rate, Stated Percentage	2.375%	2.375%
Debt Instrument, Maturity Date	Jan. 15, 2016	Jan. 15, 2016
Debenture [Member] | Debentures due 2017 [Member]
Debt Instrument [Line Items]
Long term debt debentures	289	289
Debt Instrument, Interest Rate, Stated Percentage	6.10%	6.10%
Debt Instrument, Maturity Date	Jul. 01, 2017	Jul. 01, 2017
Debenture [Member] | Debentures due 2020 [Member]
Debt Instrument [Line Items]
Long term debt debentures	239	239
Debt Instrument, Interest Rate, Stated Percentage	3.875%	3.875%
Debt Instrument, Maturity Date	Dec. 15, 2020	Dec. 15, 2020
Related long term debt converted to floating interest rates by interest rate swaps	150
Debenture [Member] | Debentures due 2022 [Member]
Debt Instrument [Line Items]
Long term debt debentures	100	100
Debt Instrument, Interest Rate, Stated Percentage	8.10%	8.10%
Debt Instrument, Maturity Date	Aug. 15, 2022	Aug. 15, 2022
Debenture [Member] | Debentures due 2025 [Member]
Debt Instrument [Line Items]
Long term debt debentures	145	145
Debt Instrument, Interest Rate, Stated Percentage	6.50%	6.50%
Debt Instrument, Maturity Date	Jun. 01, 2025	Jun. 01, 2025
Debenture [Member] | Debentures due 2029 [Member]
Debt Instrument [Line Items]
Long term debt debentures	200	200
Debt Instrument, Interest Rate, Stated Percentage	7.65%	7.65%
Debt Instrument, Maturity Date	Nov. 15, 2029	Nov. 15, 2029
Related long term debt converted to floating interest rates by interest rate swaps	50
Debenture [Member] | Debentures due 2034 [Member]
Debt Instrument [Line Items]
Long term debt debentures	136	136
Debt Instrument, Interest Rate, Stated Percentage	5.45%	5.45%
Debt Instrument, Maturity Date	Oct. 15, 2034	Oct. 15, 2034
Related long term debt converted to floating interest rates by interest rate swaps	25
Other long-term debt [Member]
Debt Instrument [Line Items]
Other	$ 220	$ 153

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Retirement Benefits Plans - Estimated Pension and Other Postretirement Benefit Payments (Details 10) (USD $) In Millions, unless otherwise specified	Dec. 31, 2014
United States pension plans [Member]
Defined Benefit Plans and Other Postretirement Benefit Plans
2015	$ 268
2016	281
2017	285
2018	289
2019	297
2020 - 2024	1,544
Non-United States pension plans [Member]
Defined Benefit Plans and Other Postretirement Benefit Plans
2015	92
2016	92
2017	94
2018	98
2019	99
2020 - 2024	542
Other postretirement benefits plans [Member]
Defined Benefit Plans and Other Postretirement Benefit Plans
2015	75
Medicare prescription drug subsidy 2015	(6)
2016	71
Medicare prescription drug subsidy 2016	(6)
2017	67
Medicare prescription drug subsidy 2017	(6)
2018	62
Medicare prescription drug subsidy 2018	(5)
2019	56
Medicare prescription drug subsidy 2019	(4)
2020 - 2024	226
Medicare prescription drug subsidy 2020 - 2024	$ (13)

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Retirement Benefits Plans - Changes in Pension and Other Postretirement Liabilities Recognized in AOCI (Details 4) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Changes in pension and other postretirement benefit liabilities recognized in Accumulated other comprehensive loss
Prior service cost arising during the year	$ (82)	$ 6	$ 1
Less amounts included in expense during the year	718	(456)	386
Net change for the year	0	(2)	2
United States pension liabilities [Member]
Changes in pension and other postretirement benefit liabilities recognized in Accumulated other comprehensive loss
Balance at January 1	1,054	1,621
Prior service cost arising during the year	2	2
Net loss (gain) arising during the year	490	(381)
Currency translation	0	0
Less amounts included in expense during the year	(164)	(186)
Other	0	(2)
Net change for the year	328	(567)
Balance at December 31	1,382	1,054
Non-United States pension liabilities [Member]
Changes in pension and other postretirement benefit liabilities recognized in Accumulated other comprehensive loss
Balance at January 1	528	559
Prior service cost arising during the year	0	4
Net loss (gain) arising during the year	262	(12)
Currency translation	(55)	6
Less amounts included in expense during the year	(29)	(29)
Other	0	0
Net change for the year	178	(31)
Balance at December 31	706	528
Other postretirement liabilities [Member]
Changes in pension and other postretirement benefit liabilities recognized in Accumulated other comprehensive loss
Balance at January 1	184	262
Prior service cost arising during the year	(84)	0
Net loss (gain) arising during the year	(34)	(63)
Currency translation	(1)	(1)
Less amounts included in expense during the year	25	(14)
Other	0	0
Net change for the year	(94)	(78)
Balance at December 31	$ 90	$ 184

XML

Acquisition Integration and Restructuring Charges Restructuring Charges (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2014	Dec. 31, 2013
Acquisition Integration Charges [Line Items]
Restructuring charges	$ 50
Severance costs	34
Other restructuring costs	16
Restructuring reserve, current		84	32
Restructuring activities related to the acquisition and integration of Cooper Industries plc [Member]
Acquisition Integration Charges [Line Items]
Restructuring charges		95	36
Severance costs	69
Other restructuring costs	26
Restructuring activities in an effort to gain efficiencies in operations [Member]
Acquisition Integration Charges [Line Items]
Restructuring charges		54
Severance costs	48
Other restructuring costs	6
Electrical Products [Member]
Acquisition Integration Charges [Line Items]
Restructuring charges	2
Electrical Products [Member] | Restructuring activities related to the acquisition and integration of Cooper Industries plc [Member]
Acquisition Integration Charges [Line Items]
Restructuring charges		53	19
Electrical Systems and Services [Member]
Acquisition Integration Charges [Line Items]
Restructuring charges	2
Electrical Systems and Services [Member] | Restructuring activities related to the acquisition and integration of Cooper Industries plc [Member]
Acquisition Integration Charges [Line Items]
Restructuring charges		42	17
Vehicle [Member]
Acquisition Integration Charges [Line Items]
Restructuring charges	17
Vehicle [Member] | Restructuring activities in an effort to gain efficiencies in operations [Member]
Acquisition Integration Charges [Line Items]
Restructuring charges		32
Hydraulics [Member]
Acquisition Integration Charges [Line Items]
Restructuring charges	17
Hydraulics [Member] | Restructuring activities in an effort to gain efficiencies in operations [Member]
Acquisition Integration Charges [Line Items]
Restructuring charges		16
Aerospace [Member]
Acquisition Integration Charges [Line Items]
Restructuring charges	4
Aerospace [Member] | Restructuring activities in an effort to gain efficiencies in operations [Member]
Acquisition Integration Charges [Line Items]
Restructuring charges		2
Corporate [Member]
Acquisition Integration Charges [Line Items]
Restructuring charges	8
Corporate [Member] | Restructuring activities in an effort to gain efficiencies in operations [Member]
Acquisition Integration Charges [Line Items]
Restructuring charges		$ 4

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Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2014

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

General Information and Basis of Presentation

Eaton Corporation plc (Eaton or the Company) is a power management company with 2014 net sales of $22.6 billion. The Company provides energy-efficient solutions that help its customers effectively manage electrical, hydraulic and mechanical power more efficiently, safely and sustainably. Eaton has approximately 102,000 employees in over 60 countries and sells products to customers in more than 175 countries.

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

The consolidated financial statements include the accounts of Eaton and all subsidiaries and other entities it controls. Intercompany transactions and balances have been eliminated. The equity method of accounting is used for investments in associate companies where the Company has significant influence and generally a 20% to 50% ownership interest. Equity investments are evaluated for impairment whenever events or circumstances indicate the book value of the investment exceeds fair value. An impairment would exist if there is an other-than-temporary decline in value. These associate companies are not material either individually, or in the aggregate, to Eaton's consolidated financial statements. Eaton does not have off-balance sheet arrangements or financings with unconsolidated entities. In the ordinary course of business, the Company leases certain real properties and equipment, as described in Note 7.

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

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

Revenue Recognition

Sales of products are recognized when a sales agreement is in place, products have been shipped to unaffiliated customers and title has transferred in accordance with shipping terms, the selling price is fixed and determinable and collectability is reasonably assured, all significant related acts of performance have been completed, and no other significant uncertainties exist. Shipping and handling costs billed to customers are included in Net sales and the related costs in Cost of products sold. Although the majority of the sales agreements contain standard terms and conditions, there are agreements that contain multiple elements or non-standard terms and conditions. As a result, judgment is required to determine the appropriate accounting, including whether the deliverables specified in these agreements should be treated as separate units of accounting for recognition purposes, and, if so, how the sales price should be allocated among the elements and when to recognize sales for each element. For delivered elements, sales generally are recognized only when the delivered elements have standalone value and there are no uncertainties regarding customer acceptance. Sales for service contracts generally are recognized as the services are provided.

Eaton records reductions to revenue for customer and distributor incentives, primarily comprised of rebates, at the time of the initial sale. Rebates are estimated based on sales terms, historical experience, trend analysis, and projected market conditions in the various markets served. The rebate programs offered vary across businesses due to the numerous markets Eaton serves, but the most common incentives relate to amounts paid or credited to customers for achieving defined volume levels.

Goodwill and Indefinite Life Intangible Assets

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

Goodwill impairment testing for 2014 was performed using a qualitative analysis, which is performed by assessing certain trends and factors, including projected market outlook and growth rates, forecasted and actual sales and operating profit margins, discount rates, industry data, and other relevant qualitative factors. These trends and factors are compared to, and based on, the assumptions used in the most recent quantitative assessment. The results of the qualitative analysis did not indicate a need to perform a quantitative analysis.

Goodwill impairment testing for 2013 was performed using a quantitative analysis under which the fair value for each reporting unit was estimated using a discounted cash flow model, which considered forecasted cash flows discounted at an estimated weighted-average cost of capital. The forecasted cash flows were based on the Company's long-term operating plan and a terminal value was used to estimate the operating segment's cash flows beyond the period covered by the operating plan. The weighted-average cost of capital is an estimate of the overall after-tax rate of return required by equity and debt market holders of a business enterprise. These analyses require the exercise of significant judgments, including judgments about appropriate discount rates, perpetual growth rates and the timing of expected future cash flows of the respective reporting unit. Sensitivity analyses were performed in order to assess the reasonableness of the assumptions and the resulting estimated fair values.

For 2014 and 2013, based on a qualitative and quantitative analysis, respectively, the fair values of Eaton's reporting units continue to substantially exceed the respective carrying amounts.

Indefinite life intangible assets consist of trademarks. They are evaluated annually for impairment as of July 1 using either a quantitative or qualitative analysis to determine whether their fair values exceed their respective carrying amounts. Indefinite life intangible asset impairment testing for 2014 and 2013 was performed using a quantitative analysis. The Company determines the fair value of these assets using a royalty relief methodology similar to that employed when the associated assets were acquired, but using updated estimates of future sales, cash flows and profitability. For 2014 and 2013, the fair value of indefinite lived intangible assets substantially exceeded the respective carrying value.

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

Other Long-Lived Assets

Depreciation and amortization for property, plant and equipment, and intangible assets subject to amortization, are generally computed by the straight-line method and included in Cost of products sold, Selling and administrative expense, and Research and development expense, as appropriate. Cost of buildings are depreciated generally over 40 years and machinery and equipment over 3 to 10 years. At December 31, 2014, the weighted-average amortization period for intangible assets subject to amortization was 17 years for patents and technology, primarily as a result of the long life of aircraft platforms; 17 years for customer relationships; and 16 years for trademarks. Software is amortized up to a maximum life of 10 years.

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

Retirement Benefits Plans

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

Net actuarial gains or losses are amortized to expense on a plan-by-plan basis when they exceed the accounting corridor. The Company’s corridors are set at either 8% or 10%, depending on the plan, of the greater of the plan assets or benefit obligations. Gains or losses outside of the corridor are subject to amortization over an average employee future service period that differs by plan, but is approximately 13 years on a weighted average basis. If most or all of the plan’s participants are no longer actively accruing benefits, the average life expectancy is used.

Warranty Accruals

Product warranty accruals are established at the time the related sale is recognized through a charge to Cost of products sold. Warranty accrual estimates are based primarily on historical warranty claim experience and specific customer contracts. Provisions for warranty accruals are comprised of basic warranties for products sold, as well as accruals for product recalls and other events when they are known and estimable. See Note 7 for additional information about warranty accruals.

Asset Retirement Obligations

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

Income Taxes

Deferred income tax assets and liabilities are determined based on the difference between the financial statement and tax basis of the respective assets and liabilities, using enacted tax rates in effect for the year when the differences are expected to reverse. Deferred income tax assets are recognized for income tax loss carryforwards and income tax credit carryforwards. Judgment is required in determining and evaluating income tax provisions and valuation allowances for deferred income tax assets. Eaton recognizes the income tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by taxing authorities, based on the technical merits of the position. Eaton evaluates and adjusts these accruals based on changing facts and circumstances. Eaton recognizes interest and penalties related to unrecognized income tax benefits in the provision for income tax expense. Penalties on unrecognized income tax benefits have been accrued for jurisdictions where penalties are automatically applied to any deficiency, regardless of the merit of the position. For additional information about income taxes, see Note 8.

Equity-Based Compensation

Eaton recognizes equity-based compensation expense based on the grant date fair value of the award over the period during which an employee is required to provide service in exchange for the award. Participants awarded restricted stock units (RSUs) do not receive dividends; therefore, their fair value is determined by reducing the closing market price of the Company’s ordinary shares on the date of grant by the present value of the estimated dividends had they been paid. The RSUs entitle the holder to receive one ordinary share for each RSU upon vesting, generally over three or four years. The fair value of restricted stock awards (RSAs) is determined based on the closing market price of the Company’s ordinary shares at the date of grant. RSAs are issued and outstanding at the time of grant, but remain subject to forfeiture until vested, generally over three or four years. Stock options are granted with an exercise price equal to the closing market price of Eaton ordinary shares on the date of grant. The fair value of stock options is determined using a Black-Scholes option-pricing model, which incorporates assumptions regarding the expected volatility, the expected option life, the risk-free interest rate, and the expected dividend yield. See Note 10 for additional information about equity-based compensation.

Derivative Financial Instruments and Hedging Activities

Eaton uses derivative financial instruments to manage the exposure to the volatility in raw material costs, currency, and interest rates on certain debt. These instruments are marked to fair value in the accompanying Consolidated Balance Sheets. Changes in the fair value of derivative assets or liabilities (i.e., gains or losses) are recognized depending upon the type of hedging relationship and whether an instrument has been designated as a hedge. For those instruments that qualify for hedge accounting, Eaton designates the hedging instrument, based upon the exposure being hedged, as a cash flow hedge, a fair value hedge, or a hedge of a net investment in a foreign operation. Changes in fair value of these instruments that do not qualify for hedge accounting are recognized immediately in net income. See Note 12 for additional information about hedges and derivative financial instruments.

Recently Issued Accounting Pronouncement

In May 2014, the Financial Accounting Standards Board issued Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers (ASU 2014-09). This accounting standard supersedes all existing US GAAP revenue recognition guidance. Under ASU 2014-09, a company will recognize revenue when it transfers the control of promised goods or services to customers in an amount that reflects the consideration which the company expects to collect in exchange for those goods or services. ASU 2014-09 will require additional disclosures in the notes to the consolidated financial statements and is effective for annual and interim reporting periods beginning after December 15, 2016. Eaton is evaluating the impact of ASU 2014-09 and an estimate of the impact to the consolidated financial statements cannot be made at this time.

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Retirement Benefits Plans - Benefits Expense (Details 5) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
United States pension plans [Member]
Defined Benefit Plans and Other Postretirement Benefit Plans
Service cost	$ 117	$ 128	$ 115
Interest cost	162	147	134
Expected return on plan assets	(246)	(226)	(183)
Amortization	93	133	118
Benefit plans	126	182	184
Settlements, curtailments and other	71	53	20
Total expense	197	235	204
Non-United States pension plans [Member]
Defined Benefit Plans and Other Postretirement Benefit Plans
Service cost	66	62	50
Interest cost	85	80	77
Expected return on plan assets	(98)	(85)	(77)
Amortization	27	27	15
Benefit plans	80	84	65
Settlements, curtailments and other	2	2	4
Total expense	82	86	69
Other postretirement benefits plans [Member]
Defined Benefit Plans and Other Postretirement Benefit Plans
Service cost	13	20	17
Interest cost	32	35	38
Expected return on plan assets	(6)	(6)	(6)
Amortization	6	14	13
Benefit plans	45	63	62
Settlements, curtailments and other	(31)	0	0
Total expense	$ 14	$ 63	$ 62

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Acquisitions and Sales of Businesses Fair Value of Consideration Transferred (Details) (USD $) Share data in Millions, unless otherwise specified	Nov. 30, 2012
Business Acquisition [Line Items]
Cooper shares	163.6
Cooper shares issued pursuant to conversion of stock options and share units under Cooper equity-based compensation plans	1.8
Total Cooper shares and share equivalents prior to transaction	165.4
Exchange ratio per share	0.77479
Total Eaton shares issued	128.1
Weighted-average Eaton Corporation per share price	$ 51.91
Total value of Eaton share consideration for purchase of Cooper	6,649,000,000
Total cash consideration paid for Cooper shares and share equivalents	6,474,000,000
Total cash consideration paid for equity-based compensation plans at fair value	69,000,000
Purchase price of Cooper	13,192,000,000
Cooper shareholders receipt of cash per ordinary share of Cooper Industries plc	$ 39.15

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Retirement Benefits Plans (Tables)

12 Months Ended

Dec. 31, 2014

Compensation and Retirement Disclosure [Abstract]

Obligations and funded status

Obligations and Funded Status

	United States pension liabilities						Non-United States pension liabilities						Other postretirement liabilities
	2014			2013			2014			2013			2014			2013
Funded status
Fair value of plan assets	$	3,086		$	2,940		$	1,535		$	1,432		$	116		$	138
Benefit obligations	(4,047		)	(3,625		)	(2,337		)	(2,127		)	(676		)	(867		)
Funded status	$	(961	)	$	(685	)	$	(802	)	$	(695	)	$	(560	)	$	(729	)
Amounts recognized in the Consolidated    Balance Sheets
Non-current assets	$	14		$	44		$	77		$	86		$	—		$	—
Current liabilities	(16		)	(15		)	(26		)	(30		)	(47		)	(61		)
Non-current liabilities	(959		)	(714		)	(853		)	(751		)	(513		)	(668		)
Total	$	(961	)	$	(685	)	$	(802	)	$	(695	)	$	(560	)	$	(729	)
Amounts recognized in Accumulated other    comprehensive loss (pretax)
Net actuarial loss	$	1,377		$	1,051		$	695		$	515		$	176		$	190
Prior service cost (credit)	5			3			11			13			(86		)	(6		)
Total	$	1,382		$	1,054		$	706		$	528		$	90		$	184

Change in benefit obligations

Change in Benefit Obligations

	United States pension liabilities						Non-United States pension liabilities						Other postretirement liabilities
	2014			2013			2014			2013			2014			2013
Balance at January 1	$	3,625		$	3,817		$	2,127		$	2,017		$	867		$	950
Service cost	117			128			66			62			13			20
Interest cost	162			147			85			80			32			35
Actuarial loss (gain)	470			(223		)	355			21			(36		)	(54		)
Gross benefits paid	(329		)	(246		)	(106		)	(90		)	(91		)	(103		)
Currency translation	—			—			(190		)	36			(4		)	(2		)
Plan amendments	2			2			—			4			(84		)	—
Other	—			—			—			(3		)	(21		)	21
Balance at December 31	$	4,047		$	3,625		$	2,337		$	2,127		$	676		$	867
Accumulated benefit obligation	$	3,894		$	3,458		$	2,181		$	2,003

Change in plan assets

Change in Plan Assets

	United States pension liabilities						Non-United States pension liabilities						Other postretirement liabilities
	2014			2013			2014			2013			2014			2013
Balance at January 1	$	2,940		$	2,607		$	1,432		$	1,248		$	138		$	146
Actual return on plan assets	226			383			191			118			4			15
Employer contributions	248			196			114			145			40			59
Gross benefits paid	(329		)	(246		)	(106		)	(90		)	(91		)	(103		)
Currency translation	—			—			(96		)	15			—			—
Other	1			—			—			(4		)	25			21
Balance at December 31	$	3,086		$	2,940		$	1,535		$	1,432		$	116		$	138

Components of pension plans with accumulated benefit obligations in excess of plan assets

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

	United States pension liabilities				Non-United States pension liabilities
	2014		2013		2014		2013
Projected benefit obligation	$	3,557	$	3,166	$	1,524	$	1,411
Accumulated benefit obligation	3,403		2,999		1,446		1,349
Fair value of plan assets	2,581		2,437		673		635

Changes in pension and other postretirement benefits liabilities recognized in Accumulated other comprehensive loss

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

	United States pension liabilities						Non-United States pension liabilities						Other postretirement liabilities
	2014			2013			2014			2013			2014			2013
Balance at January 1	$	1,054		$	1,621		$	528		$	559		$	184		$	262
Prior service cost arising during the year	2			2			—			4			(84		)	—
Net loss (gain) arising during the year	490			(381		)	262			(12		)	(34		)	(63		)
Currency translation	—			—			(55		)	6			(1		)	(1		)
Less amounts included in expense during the year	(164		)	(186		)	(29		)	(29		)	25			(14		)
Other	—			(2		)	—			—			—			—
Net change for the year	328			(567		)	178			(31		)	(94		)	(78		)
Balance at December 31	$	1,382		$	1,054		$	706		$	528		$	90		$	184

Benefits expense

Benefits Expense

	United States pension benefit expense									Non-United States pension benefit expense									Other postretirement benefits expense
	2014			2013			2012			2014			2013			2012			2014			2013			2012
Service cost	$	117		$	128		$	115		$	66		$	62		$	50		$	13		$	20		$	17
Interest cost	162			147			134			85			80			77			32			35			38
Expected return on plan assets	(246		)	(226		)	(183		)	(98		)	(85		)	(77		)	(6		)	(6		)	(6		)
Amortization	93			133			118			27			27			15			6			14			13
	126			182			184			80			84			65			45			63			62
Settlements, curtailments    and other	71			53			20			2			2			4			(31		)	—			—
Total expense	$	197		$	235		$	204		$	82		$	86		$	69		$	14		$	63		$	62

Estimated pretax net amounts that will be recognized from Accumulated other comprehensive loss into net periodic benefit cost

The estimated pretax net amounts that will be recognized from Accumulated other comprehensive loss into net periodic benefit cost in 2015 follow:

	United States pension liabilities		Non-United States pension liabilities		Other postretirement liabilities
Actuarial loss	$	168	$	39	$	15
Prior service cost (credit)	1		1		(14		)
Total	$	169	$	40	$	1

Assumptions used to determine other postretirement obligations and expense

Pension Plans

	United States pension plans						Non-United States pension plans
	2014		2013		2012		2014		2013		2012
Assumptions used to determine benefit obligation at year-end
Discount rate	3.97	%	4.67	%	3.97	%	3.33	%	4.20	%	4.17	%
Rate of compensation increase	3.16	%	3.16	%	3.16	%	3.13	%	3.12	%	3.09	%
Assumptions used to determine expense
Discount rate	4.67	%	3.97	%	4.70	%	4.20	%	4.17	%	5.12	%
Expected long-term return on plan assets	8.40	%	8.45	%	8.50	%	7.00	%	6.92	%	7.10	%
Rate of compensation increase	3.16	%	3.16	%	3.15	%	3.12	%	3.09	%	3.62	%

Assumptions used to determine other postretirement benefits obligations and expense

Assumptions used to determine other postretirement benefits obligations and expense follow:

	Other postretirement benefits plans
	2014		2013		2012
Assumptions used to determine benefit obligation at year-end
Discount rate	3.79	%	4.48	%	3.79	%
Health care cost trend rate assumed for next year	6.31	%	6.64	%	6.96	%
Ultimate health care cost trend rate	4.77	%	4.77	%	4.53	%
Year ultimate health care cost trend rate is achieved	2024		2023		2022
Assumptions used to determine expense
Discount rate	4.48	%	3.79	%	4.60	%
Initial health care cost trend rate	6.64	%	6.96	%	7.60	%
Ultimate health care cost trend rate	4.77	%	4.53	%	4.50	%
Year ultimate health care cost trend rate is achieved	2023		2022		2020

1-percentage change in the assumed health care cost trend rates

A 1-percentage point change in the assumed health care cost trend rates would have the following effects:

	1% increase		1% decrease
Effect on total service and interest cost	$	1	$	(1	)
Effect on other postretirement liabilities	20		(18		)

Employer contributions to pension plans

Contributions to pension plans that Eaton expects to make in 2015, and made in 2014, 2013 and 2012, follow:

	2015		2014		2013		2012
United States plans	$	217	$	248	$	196	$	311
Non-United States plans	109		114		145		102
Total contributions	$	326	$	362	$	341	$	413

Expected pension and other postretirement benefit payments and expected subsidy

For other postretirement benefits liabilities, the expected subsidy receipts related to the Medicare Prescription Drug, Improvement, and Modernization Act of 2003, would reduce the gross payments listed below.

	Estimated United States pension payments		Estimated non-United States pension payments		Estimated other postretirement benefit payments
					Gross		Medicare prescription drug subsidy
2015	$	268	$	92	$	75	$	(6	)
2016	281		92		71		(6		)
2017	285		94		67		(6		)
2018	289		98		62		(5		)
2019	297		99		56		(4		)
2020 - 2024	1,544		542		226		(13		)

Fair value of pension plan assets

A summary of the fair value of pension plan assets at December 31, 2014 and 2013, follows:

	Total		Quoted prices in active markets for identical assets (Level 1)		Other observable inputs (Level 2)		Unobservable inputs (Level 3)
2014
Common collective trusts
Non-United States equity and global equities	$	1,458	$	—	$	1,458	$	—
United States equity	1,005		—		1,005		—
Fixed income	646		—		646		—
Exchange traded funds	138		—		138		—
Fixed income securities	398		—		398		—
United States treasuries	106		106		—		—
Bank loans	128		—		128		—
Real estate securities	263		257		—		6
Equity securities	92		92		—		—
Cash equivalents	218		8		210		—
Hedge funds	54		—		—		54
Exchange traded funds	50		50		—		—
Other	65		—		5		60
Total pension plan assets	$	4,621	$	513	$	3,988	$	120

2013
Common collective trusts
Non-United States equity and global equities	$	1,453	$	—	$	1,453	$	—
United States equity	1,153		—		1,153		—
Fixed income	672		—		672		—
Exchange traded funds	64		—		64		—
Fixed income securities	274		—		274		—
United States treasuries	63		63		—		—
Real estate securities	220		214		—		6
Equity securities	141		141		—		—
Cash equivalents	187		6		181		—
Exchange traded funds	47		47		—		—
Other	98		—		4		94
Total pension plan assets	$	4,372	$	471	$	3,801	$	100

Fair value of other postretirement benefits plan assets

A summary of the fair value of other postretirement benefits plan assets at December 31, 2014 and 2013, follows:

	Total		Quoted prices in active markets for identical assets (Level 1)		Other observable inputs (Level 2)		Unobservable inputs (Level 3)
2014
Common collective trusts
Global equities	$	54	$	—	$	54	$	—
Fixed income securities	24		—		24		—
United States treasuries	37		37		—		—
Cash equivalents	1		1		—		—
Total other postretirement benefits plan assets	$	116	$	38	$	78	$	—

2013
Common collective trusts
Global equities	$	70	$	—	$	70	$	—
Fixed income securities	29		—		29		—
United States treasuries	38		38		—		—
Cash equivalents	1		1		—		—
Total other postretirement benefits plan assets	$	138	$	39	$	99	$	—

Employer contributions to defined contribution benefit plans, charged to expense

The total contributions related to these plans are charged to expense and were as follows:

2014	$	141
2013	121
2012	74

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Debt Debt (Tables)

12 Months Ended

Dec. 31, 2014

DEBT [Abstract]

Summary of long-term debt, including the current portion

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

	2014			2013
5.95% notes due 2014	$	—		$	250
Floating rate notes due 2014	—			300
5.45% debentures due 2015	300			300
4.65% notes due 2015	100			100
0.95% senior notes due 2015	600			600
2.375% debentures due 2016	240			240
5.30% notes due 2017 ($150 converted to floating rate by interest rate swap)	250			250
6.10% debentures due 2017	289			289
1.50% senior notes due 2017 ($650 converted to floating rate by interest rate swap)	1,000			1,000
5.60% notes due 2018 ($415 converted to floating rate by interest rate swap)	450			450
4.215% Japanese Yen notes due 2018	84			95
6.95% notes due 2019 ($300 converted to floating rate by interest rate swap)	300			300
3.875% debentures due 2020 ($150 converted to floating rate by interest rate swap)	239			239
3.47% notes due 2021 ($200 converted to floating rate by interest rate swap)	300			300
8.10% debentures due 2022	100			100
2.75% senior notes due 2022 ($1,250 converted to floating rate by interest rate swap)	1,600			1,600
3.68% notes due 2023 ($200 converted to floating rate by interest rate swap)	300			300
6.50% debentures due 2025	145			145
7.65% debentures due 2029 ($50 converted to floating rate by interest rate swap)	200			200
4.00% senior notes due 2032	700			700
5.45% debentures due 2034 ($25 converted to floating rate by interest rate swap)	136			136
5.80% notes due 2037	240			240
4.15% senior notes due 2042	1,000			1,000
5.25% to 12.5% notes (maturities ranging from 2014 to 2035, including $50 converted to    floating rate by interest rate swap)	239			249
Other	220			153
Total long-term debt	9,032			9,536
Less current portion of long-term debt	(1,008		)	(567		)
Long-term debt less current portion	$	8,024		$	8,969

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

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

2015	$	1,008
2016	242
2017	1,548
2018	570
2019	339

Interest paid on debt

Interest paid on debt follows:

2014	$	296
2013	294
2012	237

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Business Segment and Geographic Region Information (Details) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Business Segment Information
Net sales	$ 22,552	$ 22,046	$ 16,311
Segment operating profit	3,312	3,178	2,216
Litigation settlements	(644)	0	0
Amortization of intangible assets	(424)
Interest expense - net	(227)	(271)	(208)
Income before income taxes	1,761	1,884	1,251
Income tax (benefit) expense	(42)	11	31
Net income	1,803	1,873	1,220
Less net income for noncontrolling interests	(10)	(12)	(3)
Net income attributable to Eaton ordinary shareholders	1,793	1,861	1,217
Business segment acquisition integration pretax charges	129	117	33
Total business acquisition transaction costs	0	9	178
Entity-wide revenue, major customer, amount	0	0	0
Electrical Products [Member]
Business Segment Information
Net sales	7,254	7,026	3,846
Segment operating profit	1,184	1,090	640
Business segment acquisition integration pretax charges	66	44	4
Electrical Systems and Services [Member]
Business Segment Information
Net sales	6,457	6,430	3,872
Segment operating profit	843	889	424
Business segment acquisition integration pretax charges	51	37	13
Hydraulics [Member]
Business Segment Information
Net sales	2,975	2,981	2,960
Segment operating profit	367	355	369
Business segment acquisition integration pretax charges	12	36	16
Aerospace [Member]
Business Segment Information
Net sales	1,860	1,774	1,719
Segment operating profit	273	252	213
Vehicle [Member]
Business Segment Information
Net sales	4,006	3,835	3,914
Segment operating profit	645	592	570
All Segments [Member]
Business Segment Information
Business segment acquisition integration pretax charges	129	117	33
Corporate [Member]
Business Segment Information
Litigation settlements	(644)	0	0
Amortization of intangible assets	(431)	(437)	(195)
Interest expense - net	(227)	(271)	(208)
Pension and other postretirement benefits expense	(138)	(183)	(162)
Inventory step-up adjustment	0	(34)	(42)
Other corporate expense - net	(111)	(369)	(358)
Corporate acquisition integration charges	$ 25	$ 37	$ 11

XML

Debt Interest Paid on Debt (Details) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Interest Paid on Debt [Abstract]
Interest paid on debt	$ 296	$ 294	$ 237

XML

Acquisitions and Sales of Businesses Purchase Price Allocation (Details) (USD $) In Millions, unless otherwise specified	Nov. 30, 2012
Business Acquisition [Line Items]
Total consideration	$ 13,192
Cooper Industries plc [Member]
Business Acquisition [Line Items]
Working capital accounts	2,286	[1]
Prepaid expenses and other current assets	273
Property, plant and equipment	845
Investment in Apex Tool Group, LLC	800
Intangible assets	5,369
Other assets	65
Debt	(1,221)
Accounts payable	(516)
Other current liabilities	(879)
Other noncurrent liabilities	(2,362)
Total identifiable net assets	4,660
Goodwill	8,532
Total consideration	13,192
Acquired receivables, estimated fair value	955
Contingent liabilities assumed	419
Adjustments [Member] | Cooper Industries plc [Member]
Business Acquisition [Line Items]
Working capital accounts	(18)	[1]
Prepaid expenses and other current assets	69
Property, plant and equipment	(40)
Investment in Apex Tool Group, LLC	(7)
Intangible assets	119
Other assets	30
Debt	0
Accounts payable	3
Other current liabilities	(206)
Other noncurrent liabilities	(177)
Total identifiable net assets	(227)
Goodwill	227
Total consideration	0
November 30, 2012 (as previously reported) [Member] | Cooper Industries plc [Member]
Business Acquisition [Line Items]
Working capital accounts	2,304	[1]
Prepaid expenses and other current assets	204
Property, plant and equipment	885
Investment in Apex Tool Group, LLC	807
Intangible assets	5,250
Other assets	35
Debt	(1,221)
Accounts payable	(519)
Other current liabilities	(673)
Other noncurrent liabilities	(2,185)
Total identifiable net assets	4,887
Goodwill	8,305
Total consideration	$ 13,192

[1] Working capital accounts include Cash, Short-term investments, Accounts receivable and Inventory.

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Commitments and Contingencies Commitments and Contingencies (Tables)

12 Months Ended

Dec. 31, 2014

Commitments and Contingencies [Abstract]

Current and long-term warranty accruals

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

	2014			2013			2012
Balance at January 1	$	189		$	185		$	158
Provision	125			107			85
Settled	(120		)	(99		)	(84		)
Other	19			(4		)	26
Balance at December 31	$	213		$	189		$	185

Future minimum rental commitments for noncancelable operating leases

A summary of minimum rental commitments at December 31, 2014 under noncancelable operating leases, which expire at various dates and in most cases contain renewal options, for each of the next five years and thereafter in the aggregate, follow:

2015	$	153
2016	115
2017	83
2018	59
2019	34
Thereafter	60
Total noncancelable lease commitments	$	504

Rental expense

A summary of rental expense follows:

2014	$	244
2013	241
2012	199

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Income Taxes Income Taxes (Tables)

12 Months Ended

Dec. 31, 2014

Income Taxes [Abstract]

Income (loss) before income taxes

	Income (loss) before income taxes
	2014			2013		2012
Ireland	$	(332	)	$	184	$	—
Foreign	2,093			1,700		1,251
Total income before income taxes	$	1,761		$	1,884	$	1,251

Income tax (benefit) expense

	Income tax (benefit) expense
	2014			2013			2012
Current
Ireland	$	(13	)	$	17		$	—
United States
Federal	87			89			1
State and local	41			7			5
Foreign - other	239			244			130
Total current income tax expense	354			357			136
Deferred
Ireland	2			—			—
United States
Federal	(224		)	(295		)	39
State and local	(49		)	(23		)	2
Foreign - other	(125		)	(28		)	(146		)
Total deferred income tax benefit	(396		)	(346		)	(105		)
Total income tax (benefit) expense	$	(42	)	$	11		$	31

Reconciliations of income taxes from the appropriate statutory rate

Reconciliations of income taxes from the Ireland national statutory rate of 25% in 2014 and 2013, and the United States federal statutory rate of 35% in 2012, to the consolidated effective income tax rate follow:

	2014		2013		2012
Income taxes at the applicable statutory rate	25.0	%	25.0	%	35.0	%
Ireland operations
Ireland tax on trading income	(0.1	)%	(1.4	)%	—	%
Nondeductible interest expense	4.8	%	—	%	—	%
United States operations
United States (loss) income	(2.8	)%	(2.8	)%	—	%
Nondeductible goodwill - Aerospace divestitures	1.4	%	—	%	—	%
Credit for research activities	(1.0	)%	(2.0	)%	—	%
Other - net	1.5	%	1.3	%	1.8	%
Other foreign operations
United States foreign tax credit	(1.1	)%	(1.8	)%	(12.4	)%
Other foreign operations (earnings taxed at other than    the applicable statutory tax rate)	(24.8	)%	(17.6	)%	(14.9	)%
Other foreign operations - other items	(1.0	)%	0.2	%	—	%
Worldwide operations
Adjustments to tax liabilities	(1.7	)%	(1.1	)%	(5.7	)%
Adjustments to valuation allowances	(2.6	)%	0.8	%	(1.3	)%
Effective income tax (benefit) expense rate	(2.4	)%	0.6	%	2.5	%

Worldwide income tax payments

Worldwide income tax payments follow:

2014	$	258
2013	272
2012	254

Components of current and long-term deferred income taxes

Components of current and long-term deferred income taxes follow:

	2014						2013
	Current assets and liabilities			Long-term assets and liabilities			Current assets and liabilities			Long-term assets and liabilities
Accruals and other adjustments
Employee benefits	$	148		$	773		$	116		$	657
Depreciation and amortization	—			(2,010		)	(2		)	(2,294		)
Other accruals and adjustments	476			282			497			368
United States federal income tax loss carryforwards	—			58			—			—
United States federal income tax credit carryforwards	—			150			—			161
United States state and local tax loss carryforwards and    tax credit carryforwards	—			76			—			73
Other foreign tax loss carryforwards	—			2,112			—			1,708
Other foreign income tax credit carryforwards	—			49			—			63
Valuation allowance for income tax loss and income tax    credit carryforwards	(24		)	(2,134		)	—			(1,738		)
Other valuation allowances	(7		)	(29		)	(34		)	(71		)
Total deferred income taxes	$	593		$	(673	)	$	577		$	(1,073	)

United States federal income tax loss carryforwards and income tax credit carryforwards and expiration dates

These carryforwards and their respective expiration dates are summarized below:

	2015 through 2019		2020 through 2024		2025 through 2029		2030 through 2034		2035 through 2039		Not subject to expiration		Valuation allowance
United States federal income tax loss    carryforwards	$	—	$	—	$	31	$	4	$	352	$	—	$	—
United States federal deferred income tax    assets for income tax loss carryforwards	—		—		11		1		101		—		(12		)
United States federal deferred income tax    assets for income tax loss carryforwards    after ASU 2013-11	—		—		11		1		46		—		(12		)
United States federal income tax credit    carryforwards	—		64		38		86		21		32		(69		)
United States federal income tax credit    carryforwards after ASU 2013-11	—		64		37		28		21		—		(69		)

United States state and local tax loss carryforwards and tax credit carryforwards and expiration dates

The deferred tax assets for these carryforwards and their respective expiration dates are summarized below:

	2015 through 2019		2020 through 2024		2025 through 2029		2030 through 2034		2035 through 2039		Not subject to expiration		Valuation allowance
United States state and local deferred    income tax assets for income tax loss    carryforwards - net of federal tax effect	$	6	$	18	$	12	$	8	$	—	$	—	$	(18	)
United States state and local income tax    credit carryforwards - net of federal    tax effect	10		9		6		2		5		—		(18		)

Non-United States subsidiaries tax loss carryforwards and income tax credit carryforwards and expiration dates

These carryforwards and their respective expiration dates are summarized below:

	2015 through 2019		2020 through 2024		2025 through 2029		2030 through 2034		Not subject to expiration		Valuation allowance
Non-United States income tax loss carryforwards	$	135	$	165	$	38	$	18	$	9,290	$	—
Non-United States deferred income tax assets for    income tax loss carryforwards	35		41		9		5		2,022		(2,033		)
Non-United States income tax credit carryforwards	3		14		24		—		7		(8		)

Summary of gross unrecognized income tax benefits

A summary of gross unrecognized income tax benefits follows:

	2014			2013			2012
Balance at January 1	$	479		$	444		$	236
Increases and decreases as a result of positions taken during prior years
Transfers from valuation allowances	(3		)	13			—
Other increases	37			7			1
Other decreases, including currency translation	(3		)	(7		)	—
Balances related to acquired businesses	(3		)	2			177
Increases as a result of positions taken during the current year	65			35			36
Decreases relating to settlements with tax authorities	(51		)	(6		)	—
Decreases as a result of a lapse of the applicable statute of limitations	(28		)	(9		)	(6		)
Balance at December 31	$	493		$	479		$	444

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Consolidated Statements of Comprehensive Income (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Net income	$ 1,803	$ 1,873	$ 1,220
Less net income for noncontrolling interests	(10)	(12)	(3)
Net income attributable to Eaton ordinary shareholders	1,793	1,861	1,217
Other comprehensive (loss) income, net of tax
Currency translation and related hedging instruments	(1,019)	(28)	135
Pensions and other postretirement benefits	(315)	429	(152)
Cash flow hedges	(5)	3	17
Other comprehensive (loss) income attributable to Eaton ordinary shareholders	(1,339)	404	0
Total comprehensive income attributable to Eaton ordinary shareholders	$ 454	$ 2,265	$ 1,217

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Eaton Shareholders' Equity (Tables)

12 Months Ended

Dec. 31, 2014

Equity [Abstract]

Comprehensive Income (Loss)

The following table summarizes the pre-tax and after-tax amounts recognized in Comprehensive income (loss):

	2014						2013						2012
	Pre-tax			After-tax			Pre-tax			After-tax			Pre-tax			After-tax
Currency translation and related hedging instruments	$	(1,014	)	$	(1,019	)	$	(30	)	$	(28	)	$	144		$	135
Pensions and other postretirement benefits
Prior service credit (cost) arising during the year	82			51			(6		)	(4		)	(1		)	(1		)
Net (loss) gain arising during the year	(718		)	(519		)	456			277			(386		)	(262		)
Currency translation	56			47			(5		)	(4		)	(15		)	(12		)
Other	—			(4		)	2			16			(2		)	15
Amortization of actuarial loss and prior service cost    reclassified to earnings	168			110			229			144			170			108
	(412		)	(315		)	676			429			(234		)	(152		)
Cash flow hedges
(Loss) gain on derivatives designated as cash flow hedges	(3		)	(2		)	6			3			10			10
Changes in cash flow hedges reclassified to earnings	(5		)	(3		)	—			—			7			7
Cash flow hedges, net of reclassification adjustments	(8		)	(5		)	6			3			17			17
Other comprehensive (loss) income attributable to Eaton    ordinary shareholders	$	(1,434	)	$	(1,339	)	$	652		$	404		$	(73	)	$	—

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

The changes in Accumulated other comprehensive loss follow:

	Currency translation and related hedging instruments			Pensions and other postretirement benefits			Cash flow hedges			Total
Balance at December 31, 2013	$	(395	)	$	(1,170	)	$	5		$	(1,560	)
Other comprehensive loss before     reclassifications	(1,019		)	(425		)	(2		)	(1,446		)
Amounts reclassified from Accumulated other    comprehensive loss	—			110			(3		)	107
Net current-period Other comprehensive    loss	(1,019		)	(315		)	(5		)	(1,339		)
Balance at December 31, 2014	$	(1,414	)	$	(1,485	)	$	—		$	(2,899	)

Reclassification out of Accumulated Other Comprehensive Income [Table Text Block]

The reclassifications out of Accumulated other comprehensive loss follow:

	December 31, 2014			Consolidated Statements of Income classification
Amortization of defined benefit pension and other    postretirement benefits items
Actuarial loss and prior service cost	$	(168	)	1
Tax benefit	58
Total, net of tax	(110		)
Gains and losses on cash flow hedges
Floating-to-fixed interest rate swaps	(1		)	Interest expense - net
Currency exchange contracts	6			Cost of products sold
	5
Tax expense	(2		)
Total, net of tax	3
Total reclassifications for the period	$	(107	)

¹ These components of Accumulated other comprehensive loss are included in the computation of net periodic benefit cost. See Note 6 for additional information about defined benefit pension and other postretirement benefits items.

Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]

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

(Shares in millions)	2014		2013		2012
Net income attributable to Eaton ordinary shareholders	$	1,793	$	1,861	$	1,217
Weighted-average number of ordinary shares outstanding - diluted	476.8		476.7		350.9
Less dilutive effect of equity-based compensation	2.7		3.2		3.1
Weighted-average number of ordinary shares outstanding - basic	474.1		473.5		347.8
Net income per ordinary share
Diluted	$	3.76	$	3.90	$	3.46
Basic	3.78		3.93		3.54

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Eaton Shareholders' Equity Eaton Shareholders' Equity - Accumulated Other Comprehensive Income (Loss) (Details) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Changes in accumulated other comprehensive income (loss) [Line Items]
Balance at December 31	$ (2,899)	$ (1,560)
Net current-period Other comprehensive loss	(1,339)	404	0
Currency translation and related hedging instruments [Member]
Changes in accumulated other comprehensive income (loss) [Line Items]
Balance at December 31	(1,414)	(395)
Other comprehensive loss before reclassifications	(1,019)
Amounts reclassified from Accumulated other comprehensive loss	0
Net current-period Other comprehensive loss	(1,019)
Pensions and Other Postretirement Benefits [Member]
Changes in accumulated other comprehensive income (loss) [Line Items]
Balance at December 31	(1,485)	(1,170)
Other comprehensive loss before reclassifications	(425)
Amounts reclassified from Accumulated other comprehensive loss	110
Net current-period Other comprehensive loss	(315)
Cash Flow Hedges [Member]
Changes in accumulated other comprehensive income (loss) [Line Items]
Balance at December 31	0	5
Other comprehensive loss before reclassifications	(2)
Amounts reclassified from Accumulated other comprehensive loss	(3)
Net current-period Other comprehensive loss	(5)
Accumulated Other Comprehensive Income (Loss) [Member]
Changes in accumulated other comprehensive income (loss) [Line Items]
Balance at December 31	(2,899)	(1,560)
Other comprehensive loss before reclassifications	(1,446)
Amounts reclassified from Accumulated other comprehensive loss	107
Net current-period Other comprehensive loss	$ (1,339)

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Summary of Significant Accounting Policies Long-Lived Assets (Details)	12 Months Ended
	Dec. 31, 2014
Patents and technology [Member]
Long-Lived Assets [Line Items]
Weighted average amortization period for intangible assets	17 years
Customer relationships [Member]
Long-Lived Assets [Line Items]
Weighted average amortization period for intangible assets	17 years
Trademarks [Member]
Long-Lived Assets [Line Items]
Weighted average amortization period for intangible assets	16 years
Buildings [Member]
Long-Lived Assets [Line Items]
Property, plant and equipment useful life	40 years
Machinery and equipment [Member] | Minimum [Member]
Long-Lived Assets [Line Items]
Property, plant and equipment useful life	3 years
Machinery and equipment [Member] | Maximum [Member]
Long-Lived Assets [Line Items]
Property, plant and equipment useful life	10 years
Software [Member] | Maximum [Member]
Long-Lived Assets [Line Items]
Property, plant and equipment useful life	10 years

XML

Debt Revolving Credit Facilities and Lines of Credit (Details) (USD $)	0 Months Ended	12 Months Ended
	Oct. 03, 2014	Dec. 31, 2014	Dec. 31, 2013
Refinanced five-year revolving credit facility [Member]
Line of Credit Facility [Line Items]
Credit Facility, Maximum Borrowing Capacity	$ 500,000,000
Revolving credit facility, term	5 years
Refinanced three-year revolving credit facility [Member]
Line of Credit Facility [Line Items]
Credit Facility, Maximum Borrowing Capacity	750,000,000
Revolving credit facility, term	3 years
Four-year revolving credit facility, expires October 3, 2018 [Member]
Line of Credit Facility [Line Items]
Credit Facility, Maximum Borrowing Capacity	500,000,000
Revolving credit facility, term	4 years
Five-year revolving credit facility, expires October 3, 2019 [Member]
Line of Credit Facility [Line Items]
Credit Facility, Maximum Borrowing Capacity	750,000,000
Revolving credit facility, term	5 years
Five-year revolving credit facility, expires June 14, 2017 [Member]
Line of Credit Facility [Line Items]
Credit Facility, Maximum Borrowing Capacity		750,000,000
Revolving credit facility, term		5 years
Total long-term revolving credit facilities [Member]
Line of Credit Facility [Line Items]
Credit Facility, Maximum Borrowing Capacity		2,000,000,000
Credit Facility, Amount Outstanding		0	0
Letter of Credit [Member]
Line of Credit Facility [Line Items]
Credit Facility, Maximum Borrowing Capacity		340,000,000
Letters of Credit Outstanding, Amount		155,000,000
Non-United States short-term lines of credit [Member]
Line of Credit Facility [Line Items]
Credit Facility, Maximum Borrowing Capacity		$ 2,089,000,000

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Income Taxes Income (Loss) Before Income Taxes (Details) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Income (Loss) Before Income Taxes [Line Items]
Total income before income taxes	$ 1,761	$ 1,884	$ 1,251
Ireland
Income (Loss) Before Income Taxes [Line Items]
Total income before income taxes	(332)	184	0
Foreign
Income (Loss) Before Income Taxes [Line Items]
Total income before income taxes	$ 2,093	$ 1,700	$ 1,251

XML

Consolidated Statements of Income (USD $) In Millions, except Per Share data, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Income Statement [Abstract]
Net sales	$ 22,552	$ 22,046	$ 16,311
Cost of products sold	15,646	15,369	11,448
Selling and administrative expense	3,810	3,886	2,894
Litigation settlements	644	0	0
Research and development expense	647	644	439
Interest expense - net	227	271	208
Other (income) expense - net	(183)	(8)	71
Income before income taxes	1,761	1,884	1,251
Income tax (benefit) expense	(42)	11	31
Net income	1,803	1,873	1,220
Less net income for noncontrolling interests	(10)	(12)	(3)
Net income attributable to Eaton ordinary shareholders	$ 1,793	$ 1,861	$ 1,217
Net income per ordinary share
Diluted	$ 3.76	$ 3.90	$ 3.46
Basic	$ 3.78	$ 3.93	$ 3.54
Weighted-average number of ordinary shares outstanding
Diluted	476.8	476.7	350.9
Basic	474.1	473.5	347.8
Cash dividends declared per ordinary share	$ 1.96	$ 1.68	$ 1.52

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Acquisitions and Sales of Businesses Actual and Pro Forma Impact (Details) (USD $) In Millions, except Per Share data, unless otherwise specified	1 Months Ended	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2012
Business Acquisition [Line Items]
Cooper net sales	$ 470
Cooper net income	66
Pro forma net sales		21,792
Pro forma net income from continuing operations attributable to Eaton ordinary shareholders		$ 1,695
Pro forma diluted earnings per share from continuing operations		$ 3.54

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Derivative Financial Instruments and Hedging Activities (Details) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Other current assets [Member]
Derivatives designated as hedges
Derivative asset designated as hedging instrument	$ 8	$ 13
Derivative Instruments Not Designated as Hedging Instruments, Asset, at Fair Value	47	22
Other noncurrent assets [Member]
Derivatives designated as hedges
Derivative asset designated as hedging instrument	85	36
Other current liabilities [Member]
Derivatives, Fair Value [Line Items]
Derivative Instruments Not Designated as Hedging Instruments, Liability, at Fair Value	52	26
Derivatives designated as hedges
Derivative liability designated as hedging instrument	5	4
Other noncurrent liabilities [Member]
Derivatives designated as hedges
Derivative liability designated as hedging instrument	13	76
Designated as Hedging Instrument [Member] | Fair Value Hedging [Member] | Fixed-to-floating interest rate swaps
Derivatives designated as hedges
Derivative, Notional Amount	3,440	3,090
Derivative, Lower Remaining Maturity Range	2 years	3 months
Derivative, Higher Remaining Maturity Range	19 years	20 years
Designated as Hedging Instrument [Member] | Fair Value Hedging [Member] | Fixed-to-floating interest rate swaps | Other current assets [Member]
Derivatives designated as hedges
Derivative asset designated as hedging instrument	0	1
Designated as Hedging Instrument [Member] | Fair Value Hedging [Member] | Fixed-to-floating interest rate swaps | Other noncurrent assets [Member]
Derivatives designated as hedges
Derivative asset designated as hedging instrument	84	36
Designated as Hedging Instrument [Member] | Fair Value Hedging [Member] | Fixed-to-floating interest rate swaps | Other current 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 | Other noncurrent liabilities [Member]
Derivatives designated as hedges
Derivative liability designated as hedging instrument	10	76
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Floating-to-fixed interest rate swaps
Derivatives designated as hedges
Derivative, Notional Amount		300
Derivative, Lower Remaining Maturity Range		1 month
Derivative, Higher Remaining Maturity Range		6 months
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Floating-to-fixed interest rate swaps | Other current assets [Member]
Derivatives designated as hedges
Derivative asset designated as hedging instrument		0
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Floating-to-fixed interest rate swaps | Other noncurrent assets [Member]
Derivatives designated as hedges
Derivative asset designated as hedging instrument		0
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Floating-to-fixed interest rate swaps | Other current liabilities [Member]
Derivatives designated as hedges
Derivative liability designated as hedging instrument		1
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Floating-to-fixed interest rate swaps | Other noncurrent liabilities [Member]
Derivatives designated as hedges
Derivative liability designated as hedging instrument		0
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Currency exchange contracts
Derivatives designated as hedges
Derivative, Notional Amount	432	393
Derivative, Lower Remaining Maturity Range	1 month	12 months
Derivative, Higher Remaining Maturity Range	36 months	36 months
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Currency exchange contracts | Other current assets [Member]
Derivatives designated as hedges
Derivative asset designated as hedging instrument	8	12
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Currency exchange contracts | Other noncurrent assets [Member]
Derivatives designated as hedges
Derivative asset designated as hedging instrument	1	0
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Currency exchange contracts | Other current liabilities [Member]
Derivatives designated as hedges
Derivative liability designated as hedging instrument	5	3
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Currency exchange contracts | Other noncurrent liabilities [Member]
Derivatives designated as hedges
Derivative liability designated as hedging instrument	3	0
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Commodity contracts
Derivatives designated as hedges
Derivative, Notional Amount	1	1
Derivative, Lower Remaining Maturity Range	1 month	1 month
Derivative, Higher Remaining Maturity Range	12 months	12 months
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Commodity contracts | Other current assets [Member]
Derivatives designated as hedges
Derivative asset designated as hedging instrument	0	0
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Commodity contracts | Other noncurrent assets [Member]
Derivatives designated as hedges
Derivative asset designated as hedging instrument	0	0
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Commodity contracts | Other current liabilities [Member]
Derivatives designated as hedges
Derivative liability designated as hedging instrument	0	0
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Commodity contracts | Other noncurrent liabilities [Member]
Derivatives designated as hedges
Derivative liability designated as hedging instrument	0	0
Not Designated as Hedging Instrument [Member] | Currency exchange contracts
Derivatives designated as hedges
Derivative, Notional Amount	4,447	4,277
Derivative, Lower Remaining Maturity Range	1 month	1 month
Derivative, Higher Remaining Maturity Range	12 months	12 months
Not Designated as Hedging Instrument [Member] | Currency exchange contracts | Other current assets [Member]
Derivatives designated as hedges
Derivative Instruments Not Designated as Hedging Instruments, Asset, at Fair Value	47	22
Not Designated as Hedging Instrument [Member] | Currency exchange contracts | Other current liabilities [Member]
Derivatives, Fair Value [Line Items]
Derivative Instruments Not Designated as Hedging Instruments, Liability, at Fair Value	$ 52	$ 26

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Consolidated Statements of Shareholders' Equity Statement (USD $) In Millions, except Per Share data	Total USD ($)	Ordinary Shares [Member] USD ($)	Capital In Excess Of Par Value [Member] USD ($)	Retained Earnings [Member] USD ($)	Accumulated Other Comprehensive Loss [Member] USD ($)	Shares Held in Trust [Member] USD ($)	Total Eaton Shareholders' Equity [Member] USD ($)	Noncontrolling Interests [Member] USD ($)	Subsequent Event [Member]
Beginning balance at Dec. 31, 2011	$ 7,492	$ 167	$ 4,169	$ 5,103	$ (1,964)	$ (6)	$ 7,469	$ 23
Ordinary shares, shares outstanding at period start at Dec. 31, 2011		334.4
Cash dividends declared per ordinary share	$ 1.52
Net income	1,220	0	0	1,217	0	0	1,217	3
Other comprehensive income (loss), net of tax	0				0		0	0
Cash dividends paid	(515)	0	0	(512)	0	0	(512)	(3)
Exchange of Eaton Corporation shares (par value $0.50 per share) for Eaton shares (par value $0.01 per share)	0	(166)	166	0	0	0	0	0
Issuance of shares under equity-based compensation plans - net (net of income tax benefit of $20, $32 and $23 for the years 2014, 2013 and 2012, respectively), shares		5.0
Issuance of shares under equity-based compensation plans - net (net of income tax benefit of $20, $32 and $23 for the years 2014, 2013 and 2012, respectively)	129	2	129	(2)	0	0	129	0
Issuance of shares under employee benefit plans, shares		3.2
Issuance of shares under employee benefit plans	168	0	166	0	0	2	168	0
Issuance of shares from acquisition of business, shares		128.1
Issuance of shares from acquisition of business	6,691	2	6,648	(1)	0	0	6,649	42
Registration of ordinary shares	(7)	0	(7)	0	0	0	(7)	0
Ending balance at Dec. 31, 2012	15,178	5	11,271	5,805	(1,964)	(4)	15,113	65
Ordinary shares, shares outstanding at period end at Dec. 31, 2012		470.7
Cash dividends declared per ordinary share	$ 1.68
Net income	1,873	0	0	1,861	0	0	1,861	12
Other comprehensive income (loss), net of tax	404				404		404	0
Cash dividends paid	(801)	0	0	(796)	0	0	(796)	(5)
Issuance of shares under equity-based compensation plans - net (net of income tax benefit of $20, $32 and $23 for the years 2014, 2013 and 2012, respectively), shares		4.4
Issuance of shares under equity-based compensation plans - net (net of income tax benefit of $20, $32 and $23 for the years 2014, 2013 and 2012, respectively)	209	0	212	(4)	0	1	209	0
Shareholders' equity attributable to noncontrolling interest at period end at Dec. 31, 2013	72
Ending balance at Dec. 31, 2013	16,863	5	11,483	6,866	(1,560)	(3)	16,791	72
Shareholders' equity attributable to parent at period end at Dec. 31, 2013	16,791
Ordinary shares, shares outstanding at period end at Dec. 31, 2013	475.1	475.1
Cash dividends declared per ordinary share	$ 1.96
Net income	1,803	0	0	1,793	0	0	1,793	10
Other comprehensive income (loss), net of tax	(1,339)				(1,339)		(1,339)	0
Cash dividends paid	(934)	0	0	(929)	0	0	(929)	(5)
Issuance of shares under equity-based compensation plans - net (net of income tax benefit of $20, $32 and $23 for the years 2014, 2013 and 2012, respectively), shares		2.4
Issuance of shares under equity-based compensation plans - net (net of income tax benefit of $20, $32 and $23 for the years 2014, 2013 and 2012, respectively)	134	0	136	(2)	0	0	134	0
Purchase of additional noncontrolling interest of consolidated subsidiaries		0	(14)	0	0	0	(14)
Purchase of additional noncontrolling interest of consolidated subsidiaries	(38)							(24)
Repurchase of shares, shares		(9.6)
Repurchase of shares	(650)	0	0	(650)	0	0	(650)	0
Shareholders' equity attributable to noncontrolling interest at period end at Dec. 31, 2014	53
Ending balance at Dec. 31, 2014	15,839	5	11,605	7,078	(2,899)	(3)	15,786	53
Shareholders' equity attributable to parent at period end at Dec. 31, 2014	$ 15,786
Ordinary shares, shares outstanding at period end at Dec. 31, 2014	467.9	467.9

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Fair Value Measurements Fair Value Measurements (Details Textuals) (USD $) In Millions, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
Fair Value Disclosures [Abstract]
Long-term debt and current portion of long term debt, carrying value	$ 9,032	$ 9,536
Long-term debt and current portion of long-term debt, fair value	$ 9,509	$ 9,665

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Retirement Benefits Plans - Change in Plan Assets (Details 2) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Change in plan assets
Balance at December 31	$ 4,621	$ 4,372
United States pension liabilities [Member]
Change in plan assets
Balance at January 1	2,940	2,607
Actual return on plan assets	226	383
Employer contributions	248	196	311
Gross benefits paid	(329)	(246)
Currency translation	0	0
Other	1	0
Balance at December 31	3,086	2,940	2,607
Non-United States pension liabilities [Member]
Change in plan assets
Balance at January 1	1,432	1,248
Actual return on plan assets	191	118
Employer contributions	114	145	102
Gross benefits paid	(106)	(90)
Currency translation	(96)	15
Other	0	(4)
Balance at December 31	1,535	1,432	1,248
Other postretirement liabilities [Member]
Change in plan assets
Balance at January 1	138	146
Actual return on plan assets	4	15
Employer contributions	40	59
Gross benefits paid	(91)	(103)
Currency translation	0	0
Other	25	21
Balance at December 31	$ 116	$ 138

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Accounts Receivable and Inventory (Details) (USD $) In Millions, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
Accounts Receivable and Inventory [Abstract]
Allowance for doubtful accounts receivable	$ 60	$ 79
Percentage of inventory at FIFO accounted for using the LIFO method	41.00%	45.00%
Inventory Disclosure [Abstract]
Raw materials	924	955
Work-in-process	422	428
Finished goods	1,201	1,115
Inventory at FIFO	2,547	2,498
Excess of FIFO over LIFO cost	(119)	(116)
Total inventory	$ 2,428	$ 2,382

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Derivative Financial Instruments and Hedging Activities (Tables)

12 Months Ended

Dec. 31, 2014

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Summary of interest rate swaps

A summary of interest rate swaps outstanding at December 31, 2014, follows:

Fixed-to-Floating Interest Rate Swaps

Notional amount	Fixed interest rate received	Floating interest rate paid	Basis for contracted floating interest rate paid
150	5.30%	4.42%	1 month LIBOR + 4.26%
650	1.50%	0.59%	1 month LIBOR + 0.43%
415	5.60%	3.51%	6 month LIBOR + 3.18%
300	6.95%	5.30%	3 month LIBOR + 5.07%
25	8.875%	4.18%	6 month LIBOR + 3.84%
150	3.875%	2.28%	1 month LIBOR + 2.12%
200	3.47%	1.85%	1 month LIBOR + 1.69%
1,250	2.75%	0.67%	1 month LIBOR + 0.52%
200	3.68%	1.23%	1 month LIBOR + 1.07%
25	7.625%	2.81%	6 month LIBOR + 2.48%
50	7.65%	2.89%	6 month LIBOR + 2.57%
25	5.45%	0.60%	6 month LIBOR + 0.28%

Fair value of derivative financial instruments recognized in the Consolidated Balance Sheet

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

	Notional amount		Other  current assets		Other noncurrent assets		Other current liabilities		Other noncurrent liabilities		Type of hedge	Term
December 31, 2014
Derivatives designated as hedges
Fixed-to-floating interest rate swaps	$	3,440	$	—	$	84	$	—	$	10	Fair value	2 to 19 years
Currency exchange contracts	432		8		1		5		3		Cash flow	1 to 36 months
Commodity contracts	1		—		—		—		—		Cash flow	1 to 12 months
Total			$	8	$	85	$	5	$	13
Derivatives not designated as hedges
Currency exchange contracts	$	4,447	$	47			$	52				1 to 12 months
Total			$	47			$	52

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
Total			$	22			$	26

Impact of Derivative Instruments on the Consolidated Statements of Income and Comprehensive Income

The impact of derivative instruments to the Consolidated Statements of Income and Comprehensive Income follow:

	Gain (loss) recognized in other comprehensive (loss) income					Location of gain (loss) reclassified from Accumulated other comprehensive loss	Gain (loss) reclassified from Accumulated other comprehensive loss
	2014			2013			2014			2013
Derivatives designated as cash flow hedges
Floating-to-fixed interest rate swaps	$	—		$	—	Interest expense - net	$	(1	)	$	(1	)
Currency exchange contracts	(3		)	6		Cost of products sold	6			2
Commodity contracts	—			—		Cost of products sold	—			(1		)
Total	$	(3	)	$	6		$	5		$	—

Amounts recognized in net income

Amounts recognized in net income follow:

	2014			2013
Derivatives designated as fair value hedges
Fixed-to-floating interest rate swaps	$	113		$	(126	)
Related long-term debt converted to floating interest    rates by interest rate swaps	(113		)	126
	$	—		$	—

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Retirement Benefits Plans - Other Postretirement Benefits Plan Assumptions (Details 8) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Defined Benefit Plan, Effect of One-Percentage Point Change in Assumed Health Care Cost Trend Rates [Abstract]
Effect on total service and interest cost, 1% increase	1
Effect on total service and interest cost, 1% decrease	(1)
Effect on other postretirement liabilities, 1% increase	20
Effect on other postretirement liabilities, 1% decrease	(18)
Other postretirement benefits plans [Member]
Assumptions used to determine benefit obligation at year-end
Discount rate	3.79%	4.48%	3.79%
Health care cost trend rate assumed for next year	6.31%	6.64%	6.96%
Ultimate health care cost trend rate	4.77%	4.77%	4.53%
Year ultimate health care cost trend rate is achieved	2024	2023	2022
Assumptions used to determine expense
Discount rate	4.48%	3.79%	4.60%
Initial health care cost trend rate	6.64%	6.96%	7.60%
Ultimate health care cost trend rate	4.77%	4.53%	4.50%
Year ultimate health care cost trend rate is achieved	2023	2022	2020

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Business Segment and Geographic Region Information

12 Months Ended

Dec. 31, 2014

Segment Reporting [Abstract]

Business Segment and Geographic Region Information

BUSINESS SEGMENT AND GEOGRAPHIC REGION INFORMATION

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

Electrical Products and Electrical Systems and Services

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

Hydraulics

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

Aerospace

The Aerospace segment is a leading global supplier of aerospace fuel, hydraulics, and pneumatic systems for commercial and military use. Products include hydraulic power generation systems for aerospace applications including pumps, motors, hydraulic power units, hose and fittings, electro-hydraulic pumps; controls and sensing products including valves, cylinders, electronic controls, electromechanical actuators, sensors, aircraft flap and slat systems and nose wheel steering systems; fluid conveyance products, including hose, thermoplastic tubing, fittings, adapters, couplings, sealing and ducting; and fuel systems including fuel pumps, sensors, valves, adapters and regulators. In addition, products included power and load management systems and displays and panels until these businesses were sold in May of 2014. The principal markets for the Aerospace segment are manufacturers of commercial and military aircraft and related after-market customers. These manufacturers and other customers operate globally. Products are sold and serviced through a variety of channels.

Vehicle

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

Other Information

No single customer represented greater than 10% of net sales in 2014, 2013 or 2012, respectively.

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

For purposes of business segment performance measurement, the Company does not allocate items that are of a non-operating nature or are of a corporate or functional governance nature. Corporate expenses consist of transaction costs associated with the acquisition of certain businesses and corporate office expenses including compensation, benefits, occupancy, depreciation, and other administrative costs. Identifiable assets of the business segments exclude goodwill, other intangible assets, and general corporate assets, which principally consist of cash, short-term investments, deferred income taxes, certain accounts receivable, certain property, plant and equipment, and certain other assets. See Note 2 for additional information about business acquisitions.

Business Segment Information

	2014			2013			2012
Net sales
Electrical Products	$	7,254		$	7,026		$	3,846
Electrical Systems and Services	6,457			6,430			3,872
Hydraulics	2,975			2,981			2,960
Aerospace	1,860			1,774			1,719
Vehicle	4,006			3,835			3,914
Total net sales	$	22,552		$	22,046		$	16,311
Segment operating profit
Electrical Products	$	1,184		$	1,090		$	640
Electrical Systems and Services	843			889			424
Hydraulics	367			355			369
Aerospace	273			252			213
Vehicle	645			592			570
Total segment operating profit	3,312			3,178			2,216
Corporate
Litigation settlements	(644		)	—			—
Amortization of intangible assets	(431		)	(437		)	(195		)
Interest expense - net	(227		)	(271		)	(208		)
Pension and other postretirement benefits expense	(138		)	(183		)	(162		)
Inventory step-up adjustment	—			(34		)	(42		)
Other corporate expense - net	(111		)	(369		)	(358		)
Income before income taxes	1,761			1,884			1,251
Income tax (benefit) expense	(42		)	11			31
Net income	1,803			1,873			1,220
Less net income for noncontrolling interests	(10		)	(12		)	(3		)
Net income attributable to Eaton ordinary shareholders	$	1,793		$	1,861		$	1,217

Business segment operating profit was reduced by acquisition integration charges as follows:

	2014		2013		2012
Electrical Products	$	66	$	44	$	4
Electrical Systems and Services	51		37		13
Hydraulics	12		36		16
Total	$	129	$	117	$	33

Corporate acquisition integration charges totaled $25, $37 and $11 in 2014, 2013 and 2012, respectively. Corporate acquisition integration charges related primarily to the acquisition of Cooper and are included above in Other corporate expense - net.

Acquisition-related transaction costs, such as investment banking, legal and other professional fees, and costs associated with change in control agreements, are included above in Interest expense - net and Other corporate expense - net. These charges totaled $9 and $178 in 2013 and 2012, respectively. There were no Corporate acquisition-related transition costs in 2014. See Note 3 for additional information about acquisition integration charges and transaction costs.

	2014		2013		2012
Identifiable assets
Electrical Products	$	3,012	$	3,204	$	3,338
Electrical Systems and Services	2,512		2,683		2,408
Hydraulics	1,315		1,362		1,426
Aerospace	832		852		806
Vehicle	1,668		1,716		1,698
Total identifiable assets	9,339		9,817		9,676
Goodwill	13,893		14,495		14,443
Other intangible assets	6,556		7,186		7,580
Corporate	3,741		3,993		4,111
Total assets	$	33,529	$	35,491	$	35,810
Capital expenditures for property, plant and equipment
Electrical Products	$	170	$	152	$	108
Electrical Systems and Services	147		113		47
Hydraulics	79		80		60
Aerospace	28		29		27
Vehicle	160		161		148
Total	584		535		390
Corporate	48		79		203
Total expenditures for property, plant and equipment	$	632	$	614	$	593
Depreciation of property, plant and equipment
Electrical Products	$	148	$	151	$	78
Electrical Systems and Services	90		86		42
Hydraulics	67		65		61
Aerospace	28		27		26
Vehicle	130		133		136
Total	463		462		343
Corporate	51		54		38
Total depreciation of property, plant and equipment	$	514	$	516	$	381

Geographic Region Information

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

	2014		2013		2012
Net sales
United States	$	11,701	$	11,092	$	7,789
Canada	1,113		1,154		918
Latin America	1,988		2,113		1,588
Europe	5,074		5,112		3,997
Asia Pacific	2,676		2,575		2,019
Total	$	22,552	$	22,046	$	16,311
Long-lived assets
United States	$	1,988	$	1,966	$	1,914
Canada	25		28		33
Latin America	306		331		346
Europe	799		856		845
Asia Pacific	632		652		648
Total	$	3,750	$	3,833	$	3,786

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Accounts Receivable and Inventory (Tables)

12 Months Ended

Dec. 31, 2014

Accounts Receivable and Inventory [Abstract]

Components of inventory

The components of inventory follow:

	2014			2013
Raw materials	$	924		$	955
Work-in-process	422			428
Finished goods	1,201			1,115
Inventory at FIFO	2,547			2,498
Excess of FIFO over LIFO cost	(119		)	(116		)
Total inventory	$	2,428		$	2,382

XML

Derivative Financial Instruments and Hedging Activities Amounts Recognized in Net income (Details) (Interest expense - net [Member], Fair Value Hedging [Member], USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Derivative Instruments, Gain (Loss) [Line Items]
Derivative designated as fair value hedges	$ 0	$ 0
Interest Rate Contract [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Derivative designated as fair value hedges	113	(126)
Related Long Term Debt Converted To Floating Interest Rates By Interest Rate Swaps [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Derivative designated as fair value hedges	$ (113)	$ 126

XML

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

12 Months Ended

Dec. 31, 2014

Accounting Policies [Abstract]

General Information

General Information and Basis of Presentation

Eaton Corporation plc (Eaton or the Company) is a power management company with 2014 net sales of $22.6 billion. The Company provides energy-efficient solutions that help its customers effectively manage electrical, hydraulic and mechanical power more efficiently, safely and sustainably. Eaton has approximately 102,000 employees in over 60 countries and sells products to customers in more than 175 countries.

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

The consolidated financial statements include the accounts of Eaton and all subsidiaries and other entities it controls. Intercompany transactions and balances have been eliminated. The equity method of accounting is used for investments in associate companies where the Company has significant influence and generally a 20% to 50% ownership interest. Equity investments are evaluated for impairment whenever events or circumstances indicate the book value of the investment exceeds fair value. An impairment would exist if there is an other-than-temporary decline in value. These associate companies are not material either individually, or in the aggregate, to Eaton's consolidated financial statements. Eaton does not have off-balance sheet arrangements or financings with unconsolidated entities. In the ordinary course of business, the Company leases certain real properties and equipment, as described in Note 7.

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

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

Business Description and Basis of Presentation

Eaton Corporation plc (Eaton or the Company) is a power management company with 2014 net sales of $22.6 billion. The Company provides energy-efficient solutions that help its customers effectively manage electrical, hydraulic and mechanical power more efficiently, safely and sustainably. Eaton has approximately 102,000 employees in over 60 countries and sells products to customers in more than 175 countries.

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

Consolidation Policy

The consolidated financial statements include the accounts of Eaton and all subsidiaries and other entities it controls. Intercompany transactions and balances have been eliminated. The equity method of accounting is used for investments in associate companies where the Company has significant influence and generally a 20% to 50% ownership interest. Equity investments are evaluated for impairment whenever events or circumstances indicate the book value of the investment exceeds fair value. An impairment would exist if there is an other-than-temporary decline in value. These associate companies are not material either individually, or in the aggregate, to Eaton's consolidated financial statements. Eaton does not have off-balance sheet arrangements or financings with unconsolidated entities. In the ordinary course of business, the Company leases certain real properties and equipment, as described in Note 7.

Foreign Currency Translation

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

Reclassifications

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

Revenue Recognition

Revenue Recognition

Sales of products are recognized when a sales agreement is in place, products have been shipped to unaffiliated customers and title has transferred in accordance with shipping terms, the selling price is fixed and determinable and collectability is reasonably assured, all significant related acts of performance have been completed, and no other significant uncertainties exist. Shipping and handling costs billed to customers are included in Net sales and the related costs in Cost of products sold. Although the majority of the sales agreements contain standard terms and conditions, there are agreements that contain multiple elements or non-standard terms and conditions. As a result, judgment is required to determine the appropriate accounting, including whether the deliverables specified in these agreements should be treated as separate units of accounting for recognition purposes, and, if so, how the sales price should be allocated among the elements and when to recognize sales for each element. For delivered elements, sales generally are recognized only when the delivered elements have standalone value and there are no uncertainties regarding customer acceptance. Sales for service contracts generally are recognized as the services are provided.

Eaton records reductions to revenue for customer and distributor incentives, primarily comprised of rebates, at the time of the initial sale. Rebates are estimated based on sales terms, historical experience, trend analysis, and projected market conditions in the various markets served. The rebate programs offered vary across businesses due to the numerous markets Eaton serves, but the most common incentives relate to amounts paid or credited to customers for achieving defined volume levels.

Goodwill and Indefinite Life Intangible Assets

Goodwill and Indefinite Life Intangible Assets

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

Goodwill impairment testing for 2014 was performed using a qualitative analysis, which is performed by assessing certain trends and factors, including projected market outlook and growth rates, forecasted and actual sales and operating profit margins, discount rates, industry data, and other relevant qualitative factors. These trends and factors are compared to, and based on, the assumptions used in the most recent quantitative assessment. The results of the qualitative analysis did not indicate a need to perform a quantitative analysis.

Goodwill impairment testing for 2013 was performed using a quantitative analysis under which the fair value for each reporting unit was estimated using a discounted cash flow model, which considered forecasted cash flows discounted at an estimated weighted-average cost of capital. The forecasted cash flows were based on the Company's long-term operating plan and a terminal value was used to estimate the operating segment's cash flows beyond the period covered by the operating plan. The weighted-average cost of capital is an estimate of the overall after-tax rate of return required by equity and debt market holders of a business enterprise. These analyses require the exercise of significant judgments, including judgments about appropriate discount rates, perpetual growth rates and the timing of expected future cash flows of the respective reporting unit. Sensitivity analyses were performed in order to assess the reasonableness of the assumptions and the resulting estimated fair values.

For 2014 and 2013, based on a qualitative and quantitative analysis, respectively, the fair values of Eaton's reporting units continue to substantially exceed the respective carrying amounts.

Indefinite life intangible assets consist of trademarks. They are evaluated annually for impairment as of July 1 using either a quantitative or qualitative analysis to determine whether their fair values exceed their respective carrying amounts. Indefinite life intangible asset impairment testing for 2014 and 2013 was performed using a quantitative analysis. The Company determines the fair value of these assets using a royalty relief methodology similar to that employed when the associated assets were acquired, but using updated estimates of future sales, cash flows and profitability. For 2014 and 2013, the fair value of indefinite lived intangible assets substantially exceeded the respective carrying value.

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

Other Long-Lived Assets

Other Long-Lived Assets

Depreciation and amortization for property, plant and equipment, and intangible assets subject to amortization, are generally computed by the straight-line method and included in Cost of products sold, Selling and administrative expense, and Research and development expense, as appropriate. Cost of buildings are depreciated generally over 40 years and machinery and equipment over 3 to 10 years. At December 31, 2014, the weighted-average amortization period for intangible assets subject to amortization was 17 years for patents and technology, primarily as a result of the long life of aircraft platforms; 17 years for customer relationships; and 16 years for trademarks. Software is amortized up to a maximum life of 10 years.

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

Retirement Benefits Plans

Retirement Benefits Plans

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

Net actuarial gains or losses are amortized to expense on a plan-by-plan basis when they exceed the accounting corridor. The Company’s corridors are set at either 8% or 10%, depending on the plan, of the greater of the plan assets or benefit obligations. Gains or losses outside of the corridor are subject to amortization over an average employee future service period that differs by plan, but is approximately 13 years on a weighted average basis. If most or all of the plan’s participants are no longer actively accruing benefits, the average life expectancy is used.

Warranty Accruals

Warranty Accruals

Product warranty accruals are established at the time the related sale is recognized through a charge to Cost of products sold. Warranty accrual estimates are based primarily on historical warranty claim experience and specific customer contracts. Provisions for warranty accruals are comprised of basic warranties for products sold, as well as accruals for product recalls and other events when they are known and estimable. See Note 7 for additional information about warranty accruals.

Asset Retirement Obligations

Asset Retirement Obligations

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

Income Taxes

Income Taxes

Deferred income tax assets and liabilities are determined based on the difference between the financial statement and tax basis of the respective assets and liabilities, using enacted tax rates in effect for the year when the differences are expected to reverse. Deferred income tax assets are recognized for income tax loss carryforwards and income tax credit carryforwards. Judgment is required in determining and evaluating income tax provisions and valuation allowances for deferred income tax assets. Eaton recognizes the income tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by taxing authorities, based on the technical merits of the position. Eaton evaluates and adjusts these accruals based on changing facts and circumstances. Eaton recognizes interest and penalties related to unrecognized income tax benefits in the provision for income tax expense. Penalties on unrecognized income tax benefits have been accrued for jurisdictions where penalties are automatically applied to any deficiency, regardless of the merit of the position. For additional information about income taxes, see Note 8.

Equity-Based Compensation

Equity-Based Compensation

Eaton recognizes equity-based compensation expense based on the grant date fair value of the award over the period during which an employee is required to provide service in exchange for the award. Participants awarded restricted stock units (RSUs) do not receive dividends; therefore, their fair value is determined by reducing the closing market price of the Company’s ordinary shares on the date of grant by the present value of the estimated dividends had they been paid. The RSUs entitle the holder to receive one ordinary share for each RSU upon vesting, generally over three or four years. The fair value of restricted stock awards (RSAs) is determined based on the closing market price of the Company’s ordinary shares at the date of grant. RSAs are issued and outstanding at the time of grant, but remain subject to forfeiture until vested, generally over three or four years. Stock options are granted with an exercise price equal to the closing market price of Eaton ordinary shares on the date of grant. The fair value of stock options is determined using a Black-Scholes option-pricing model, which incorporates assumptions regarding the expected volatility, the expected option life, the risk-free interest rate, and the expected dividend yield. See Note 10 for additional information about equity-based compensation.

Derivative Financial Instruments and Hedging Activities

Derivative Financial Instruments and Hedging Activities

Eaton uses derivative financial instruments to manage the exposure to the volatility in raw material costs, currency, and interest rates on certain debt. These instruments are marked to fair value in the accompanying Consolidated Balance Sheets. Changes in the fair value of derivative assets or liabilities (i.e., gains or losses) are recognized depending upon the type of hedging relationship and whether an instrument has been designated as a hedge. For those instruments that qualify for hedge accounting, Eaton designates the hedging instrument, based upon the exposure being hedged, as a cash flow hedge, a fair value hedge, or a hedge of a net investment in a foreign operation. Changes in fair value of these instruments that do not qualify for hedge accounting are recognized immediately in net income. See Note 12 for additional information about hedges and derivative financial instruments.

Recently Issued Accounting Pronouncement

Recently Issued Accounting Pronouncement

In May 2014, the Financial Accounting Standards Board issued Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers (ASU 2014-09). This accounting standard supersedes all existing US GAAP revenue recognition guidance. Under ASU 2014-09, a company will recognize revenue when it transfers the control of promised goods or services to customers in an amount that reflects the consideration which the company expects to collect in exchange for those goods or services. ASU 2014-09 will require additional disclosures in the notes to the consolidated financial statements and is effective for annual and interim reporting periods beginning after December 15, 2016. Eaton is evaluating the impact of ASU 2014-09 and an estimate of the impact to the consolidated financial statements cannot be made at this time.

XML

Retirement Benefits Plans - Fair Value of Pension Plan Assets (Details 11) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	$ 4,621	$ 4,372
United States pension plans percentage of worldwide pension assets	67.00%
United Kingdom pension plans percentage of worldwide pension assets	27.00%
United States pension plans' target allocation of United States equities	32.00%
United States pension plans' target allocation of non-United States equities	32.00%
United States pension plans' target allocation of real estate	8.00%
United State pension plans' target allocation of debt securities	24.00%
United States pension plans' target allocation of other, including hedge funds and cash equivalents	4.00%
United Kingdom pension plans' target allocation of equities	57.00%
Quoted prices in active markets for identical assets (Level 1) [Member]
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	513	471
Other observable inputs (Level 2) [Member]
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	3,988	3,801
Unobservable inputs (Level 3) [Member]
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	120	100
Non-United States Equity and Global Equities [Member]
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	1,458	1,453
Non-United States Equity and Global Equities [Member] | Quoted prices in active markets for identical assets (Level 1) [Member]
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	0	0
Non-United States Equity and Global Equities [Member] | Other observable inputs (Level 2) [Member]
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	1,458	1,453
Non-United States Equity and Global Equities [Member] | Unobservable inputs (Level 3) [Member]
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	0	0
United States Equity [Member]
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	1,005	1,153
United States Equity [Member] | Quoted prices in active markets for identical assets (Level 1) [Member]
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	0	0
United States Equity [Member] | Other observable inputs (Level 2) [Member]
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	1,005	1,153
United States Equity [Member] | Unobservable inputs (Level 3) [Member]
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	0	0
Fixed Income [Member]
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	646	672
Fixed Income [Member] | Quoted prices in active markets for identical assets (Level 1) [Member]
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	0	0
Fixed Income [Member] | Other observable inputs (Level 2) [Member]
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	646	672
Fixed Income [Member] | Unobservable inputs (Level 3) [Member]
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	0	0
Exchange Traded Funds [Member]
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	138	64
Exchange Traded Funds [Member] | Quoted prices in active markets for identical assets (Level 1) [Member]
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	0	0
Exchange Traded Funds [Member] | Other observable inputs (Level 2) [Member]
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	138	64
Exchange Traded Funds [Member] | Unobservable inputs (Level 3) [Member]
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	0	0
Fixed Income Securities [Member]
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	398	274
Fixed Income Securities [Member] | Quoted prices in active markets for identical assets (Level 1) [Member]
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	0	0
Fixed Income Securities [Member] | Other observable inputs (Level 2) [Member]
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	398	274
Fixed Income Securities [Member] | Unobservable inputs (Level 3) [Member]
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	0	0
United States treasuries [Member]
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	106	63
United States treasuries [Member] | Quoted prices in active markets for identical assets (Level 1) [Member]
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	106	63
United States treasuries [Member] | Other observable inputs (Level 2) [Member]
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	0	0
United States treasuries [Member] | Unobservable inputs (Level 3) [Member]
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	0	0
Bank Loans [Member]
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	128
Bank Loans [Member] | Quoted prices in active markets for identical assets (Level 1) [Member]
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	0
Bank Loans [Member] | Other observable inputs (Level 2) [Member]
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	128
Bank Loans [Member] | Unobservable inputs (Level 3) [Member]
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	0
Real Estate Securities [Member]
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	263	220
Real Estate Securities [Member] | Quoted prices in active markets for identical assets (Level 1) [Member]
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	257	214
Real Estate Securities [Member] | Other observable inputs (Level 2) [Member]
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	0	0
Real Estate Securities [Member] | Unobservable inputs (Level 3) [Member]
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	6	6
Equity Securities [Member]
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	92	141
Equity Securities [Member] | Quoted prices in active markets for identical assets (Level 1) [Member]
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	92	141
Equity Securities [Member] | Other observable inputs (Level 2) [Member]
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	0	0
Equity Securities [Member] | Unobservable inputs (Level 3) [Member]
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	0	0
Cash Equivalents [Member]
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	218	187
Cash Equivalents [Member] | Quoted prices in active markets for identical assets (Level 1) [Member]
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	8	6
Cash Equivalents [Member] | Other observable inputs (Level 2) [Member]
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	210	181
Cash Equivalents [Member] | Unobservable inputs (Level 3) [Member]
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	0	0
Hedge Funds [Member]
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	54
Hedge Funds [Member] | Quoted prices in active markets for identical assets (Level 1) [Member]
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	0
Hedge Funds [Member] | Other observable inputs (Level 2) [Member]
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	0
Hedge Funds [Member] | Unobservable inputs (Level 3) [Member]
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	54
Exchange Traded Funds [Member]
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	50	47
Exchange Traded Funds [Member] | Quoted prices in active markets for identical assets (Level 1) [Member]
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	50	47
Exchange Traded Funds [Member] | Other observable inputs (Level 2) [Member]
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	0	0
Exchange Traded Funds [Member] | Unobservable inputs (Level 3) [Member]
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	0	0
Other [Member]
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	65	98
Other [Member] | Quoted prices in active markets for identical assets (Level 1) [Member]
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	0	0
Other [Member] | Other observable inputs (Level 2) [Member]
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	5	4
Other [Member] | Unobservable inputs (Level 3) [Member]
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	$ 60	$ 94

XML

Consolidated Statements of Shareholders' Equity Parenthetical (USD $) In Millions, except Per Share data, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Consolidated Statements of Shareholders' Equity [Abstract]
Issuance of shares under equity-based compensation plans - net, net of income tax benefit	$ 20	$ 32	$ 23
Eaton Corporation common share par value			$ 0.50
Eaton Corporation plc ordinary share par value	$ 0.01		$ 0.01

XML

Consolidated Balance Sheets (USD $) In Millions, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
Current assets
Cash	$ 781	$ 915
Short-term investments	245	794
Accounts receivable - net	3,667	3,648
Inventory	2,428	2,382
Deferred income taxes	593	577
Prepaid expenses and other current assets	386	415
Total current assets	8,100	8,731
Property, plant and equipment
Land and buildings	2,343	2,461
Machinery and equipment	5,621	5,504
Gross property, plant and equipment	7,964	7,965
Accumulated depreciation	(4,214)	(4,132)
Net property, plant and equipment	3,750	3,833
Other noncurrent assets
Goodwill	13,893	14,495
Other intangible assets	6,556	7,186
Deferred income taxes	228	240
Other assets	1,002	1,006
Total assets	33,529	35,491
Current liabilities
Short-term debt	2	13
Current portion of long-term debt	1,008	567
Accounts payable	1,940	1,960
Accrued compensation	420	461
Other current liabilities	1,985	1,913
Total current liabilities	5,355	4,914
Noncurrent liabilities
Long-term debt	8,024	8,969
Pension liabilities	1,812	1,465
Other postretirement benefits liabilities	513	668
Deferred income taxes	901	1,313
Other noncurrent liabilities	1,085	1,299
Total noncurrent liabilities	12,335	13,714
Shareholders' equity
Ordinary shares (467.9 million outstanding in 2014 and 475.1 million in 2013)	5	5
Capital in excess of par value	11,605	11,483
Retained earnings	7,078	6,866
Accumulated other comprehensive loss	(2,899)	(1,560)
Shares held in trust	(3)	(3)
Total Eaton shareholders' equity	15,786	16,791
Noncontrolling interests	53	72
Total equity	15,839	16,863
Total liabilities and equity	$ 33,529	$ 35,491

XML

Eaton Shareholders' Equity

12 Months Ended

Dec. 31, 2014

Equity [Abstract]

Eaton Shareholders' Equity [Text Block]

EATON SHAREHOLDERS' EQUITY

There are 750 million Eaton ordinary shares authorized ($0.01 par value per share), 467.9 million and 475.1 million of which were issued and outstanding at December 31, 2014 and 2013, respectively. Eaton's Memorandum and Articles of Association authorized 40 thousand deferred ordinary shares (€1.00 par value per share) and 10 thousand preferred A shares ($1.00 par value per share), all of which were issued and outstanding at December 31, 2014 and 2013, and 10 million serial preferred shares ($0.01 par value per share), none of which is outstanding at December 31, 2014 and 2013. At December 31, 2014, there were 18,993 holders of record of Eaton ordinary shares. Additionally, 26,059 current and former employees were shareholders through participation in the Eaton Savings Plan, Eaton Personal Investment Plan, Eaton Puerto Rico Retirement Savings Plan, and the Cooper Retirement Savings and Stock Ownership Plan.

On September 28, 2011, Eaton Corporation's Board of Directors adopted a common share repurchase program (2011 Program) which authorized the purchase of up to 20 million common shares, not to exceed an aggregate purchase price of $1.25 billion. During 2012, no common shares were repurchased under the 2011 Program. On April 24, 2013, the Company's shareholders authorized the Board of Directors to adopt an ordinary share repurchase program (2013 Program) for up to 40 million ordinary shares at prices between 70% and 120% of the closing price of Eaton's ordinary shares on the day of purchase. On October 22, 2013, Eaton's Board of Directors adopted the 2013 Program. The ordinary shares are expected to be repurchased over time, depending on market conditions, the market price of ordinary shares, capital levels, and other considerations. During 2014, 9.6 million ordinary shares were repurchased under the 2013 Program in the open market at a total cost of $650. During 2013, no ordinary shares were repurchased under the 2013 Program.

Eaton has deferral plans that permit certain employees and directors to defer a portion of their compensation. A trust contains $19 and $24 of ordinary shares and marketable securities, as valued at December 31, 2014 and 2013, respectively, to fund a portion of these liabilities. The marketable securities were included in Other assets and the ordinary shares were included in Shareholders' equity at historical cost.

On February 25, 2015, Eaton's Board of Directors declared a quarterly dividend of $0.55 per ordinary share, payable on March 20, 2015, to shareholders of record at the close of business on March 9, 2015.

Comprehensive Income (Loss)

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

	2014						2013						2012
	Pre-tax			After-tax			Pre-tax			After-tax			Pre-tax			After-tax
Currency translation and related hedging instruments	$	(1,014	)	$	(1,019	)	$	(30	)	$	(28	)	$	144		$	135
Pensions and other postretirement benefits
Prior service credit (cost) arising during the year	82			51			(6		)	(4		)	(1		)	(1		)
Net (loss) gain arising during the year	(718		)	(519		)	456			277			(386		)	(262		)
Currency translation	56			47			(5		)	(4		)	(15		)	(12		)
Other	—			(4		)	2			16			(2		)	15
Amortization of actuarial loss and prior service cost    reclassified to earnings	168			110			229			144			170			108
	(412		)	(315		)	676			429			(234		)	(152		)
Cash flow hedges
(Loss) gain on derivatives designated as cash flow hedges	(3		)	(2		)	6			3			10			10
Changes in cash flow hedges reclassified to earnings	(5		)	(3		)	—			—			7			7
Cash flow hedges, net of reclassification adjustments	(8		)	(5		)	6			3			17			17
Other comprehensive (loss) income attributable to Eaton    ordinary shareholders	$	(1,434	)	$	(1,339	)	$	652		$	404		$	(73	)	$	—

The changes in Accumulated other comprehensive loss follow:

	Currency translation and related hedging instruments			Pensions and other postretirement benefits			Cash flow hedges			Total
Balance at December 31, 2013	$	(395	)	$	(1,170	)	$	5		$	(1,560	)
Other comprehensive loss before     reclassifications	(1,019		)	(425		)	(2		)	(1,446		)
Amounts reclassified from Accumulated other    comprehensive loss	—			110			(3		)	107
Net current-period Other comprehensive    loss	(1,019		)	(315		)	(5		)	(1,339		)
Balance at December 31, 2014	$	(1,414	)	$	(1,485	)	$	—		$	(2,899	)

The reclassifications out of Accumulated other comprehensive loss follow:

	December 31, 2014			Consolidated Statements of Income classification
Amortization of defined benefit pension and other    postretirement benefits items
Actuarial loss and prior service cost	$	(168	)	1
Tax benefit	58
Total, net of tax	(110		)
Gains and losses on cash flow hedges
Floating-to-fixed interest rate swaps	(1		)	Interest expense - net
Currency exchange contracts	6			Cost of products sold
	5
Tax expense	(2		)
Total, net of tax	3
Total reclassifications for the period	$	(107	)

¹ These components of Accumulated other comprehensive loss are included in the computation of net periodic benefit cost. See Note 6 for additional information about defined benefit pension and other postretirement benefits items.

Net Income per Ordinary Share

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

(Shares in millions)	2014		2013		2012
Net income attributable to Eaton ordinary shareholders	$	1,793	$	1,861	$	1,217
Weighted-average number of ordinary shares outstanding - diluted	476.8		476.7		350.9
Less dilutive effect of equity-based compensation	2.7		3.2		3.1
Weighted-average number of ordinary shares outstanding - basic	474.1		473.5		347.8
Net income per ordinary share
Diluted	$	3.76	$	3.90	$	3.46
Basic	3.78		3.93		3.54

In 2014, 2013, and 2012, 0.5 million, 0.2 million, and 2.2 million stock options, respectively, 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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Condensed Consolidating Financial Statements Consolidating Statements of Comprehensive Income (Details) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Condensed Income Statements, Captions [Line Items]
Net sales	$ 22,552	$ 22,046	$ 16,311
Cost of products sold	15,646	15,369	11,448
Selling and administrative expense	3,810	3,886	2,894
Litigation settlements	644	0	0
Research and development expense	647	644	439
Interest expense (income) - net	227	271	208
Other expense (income) - net	(183)	(8)	71
Equity in (earnings) loss of subsidiaries, net of tax	0	0	0
Intercompany expense (income) - net	0	0	0
Income before income taxes	1,761	1,884	1,251
Income tax (benefit) expense	(42)	11	31
Net income	1,803	1,873	1,220
Less net income for noncontrolling interests	(10)	(12)	(3)
Net income attributable to Eaton ordinary shareholders	1,793	1,861	1,217
Other comprehensive (loss) income attributable to Eaton ordinary shareholders	(1,339)	404	0
Total comprehensive (loss) income attributable to Eaton ordinary shareholders	454	2,265	1,217
Eaton Corporation plc [Member]
Condensed Income Statements, Captions [Line Items]
Net sales	0	0	0
Cost of products sold	0	0	0
Selling and administrative expense	171	32	0
Litigation settlements	0
Research and development expense	0	0	0
Interest expense (income) - net	0	0	0
Other expense (income) - net	0	0	0
Equity in (earnings) loss of subsidiaries, net of tax	(2,191)	(2,147)	(1,219)
Intercompany expense (income) - net	227	254	2
Income before income taxes	1,793	1,861	1,217
Income tax (benefit) expense	0	0	0
Net income	1,793	1,861	1,217
Less net income for noncontrolling interests	0	0	0
Net income attributable to Eaton ordinary shareholders	1,793	1,861	1,217
Other comprehensive (loss) income attributable to Eaton ordinary shareholders	(1,339)	404	0
Total comprehensive (loss) income attributable to Eaton ordinary shareholders	454	2,265	1,217
Eaton Corporation [Member]
Condensed Income Statements, Captions [Line Items]
Net sales	6,990	6,695	6,680
Cost of products sold	5,519	5,227	5,115
Selling and administrative expense	1,246	1,400	1,307
Litigation settlements	644
Research and development expense	240	255	230
Interest expense (income) - net	225	271	229
Other expense (income) - net	(17)	8	10
Equity in (earnings) loss of subsidiaries, net of tax	(674)	(668)	(236)
Intercompany expense (income) - net	(263)	(155)	(237)
Income before income taxes	70	357	262
Income tax (benefit) expense	(100)	(108)	24
Net income	170	465	238
Less net income for noncontrolling interests	0	0	0
Net income attributable to Eaton ordinary shareholders	170	465	238
Other comprehensive (loss) income attributable to Eaton ordinary shareholders	(195)	219	(27)
Total comprehensive (loss) income attributable to Eaton ordinary shareholders	(25)	684	211
Guarantors [Member]
Condensed Income Statements, Captions [Line Items]
Net sales	6,885	6,421	2,849
Cost of products sold	5,075	4,784	2,193
Selling and administrative expense	743	749	335
Litigation settlements	0
Research and development expense	202	200	108
Interest expense (income) - net	25	28	8
Other expense (income) - net	(81)	4	48
Equity in (earnings) loss of subsidiaries, net of tax	(2,655)	(2,006)	(1,292)
Intercompany expense (income) - net	855	(433)	42
Income before income taxes	2,721	3,095	1,407
Income tax (benefit) expense	76	(90)	0
Net income	2,645	3,185	1,407
Less net income for noncontrolling interests	0	0	0
Net income attributable to Eaton ordinary shareholders	2,645	3,185	1,407
Other comprehensive (loss) income attributable to Eaton ordinary shareholders	(1,367)	474	(17)
Total comprehensive (loss) income attributable to Eaton ordinary shareholders	1,278	3,659	1,390
Other Subsidiaries [Member]
Condensed Income Statements, Captions [Line Items]
Net sales	13,521	13,579	10,346
Cost of products sold	9,882	10,010	7,708
Selling and administrative expense	1,650	1,705	1,252
Litigation settlements	0
Research and development expense	205	189	101
Interest expense (income) - net	(29)	(22)	(29)
Other expense (income) - net	(85)	(20)	13
Equity in (earnings) loss of subsidiaries, net of tax	(302)	(288)	(123)
Intercompany expense (income) - net	(819)	334	193
Income before income taxes	3,019	1,671	1,231
Income tax (benefit) expense	(11)	207	6
Net income	3,030	1,464	1,225
Less net income for noncontrolling interests	(8)	(9)	(3)
Net income attributable to Eaton ordinary shareholders	3,022	1,455	1,222
Other comprehensive (loss) income attributable to Eaton ordinary shareholders	(1,644)	258	82
Total comprehensive (loss) income attributable to Eaton ordinary shareholders	1,378	1,713	1,304
Consolidating Adjustments [Member]
Condensed Income Statements, Captions [Line Items]
Net sales	(4,844)	(4,649)	(3,564)
Cost of products sold	(4,830)	(4,652)	(3,568)
Selling and administrative expense	0	0	0
Litigation settlements	0
Research and development expense	0	0	0
Interest expense (income) - net	6	(6)	0
Other expense (income) - net	0	0	0
Equity in (earnings) loss of subsidiaries, net of tax	5,822	5,109	2,870
Intercompany expense (income) - net	0	0	0
Income before income taxes	(5,842)	(5,100)	(2,866)
Income tax (benefit) expense	(7)	2	1
Net income	(5,835)	(5,102)	(2,867)
Less net income for noncontrolling interests	(2)	(3)	0
Net income attributable to Eaton ordinary shareholders	(5,837)	(5,105)	(2,867)
Other comprehensive (loss) income attributable to Eaton ordinary shareholders	3,206	(951)	(38)
Total comprehensive (loss) income attributable to Eaton ordinary shareholders	$ (2,631)	$ (6,056)	$ (2,905)

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Fair Value Measurements Fair Value Measurements (Details 1) (USD $) In Millions, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
Summary of carrying value of short-term investments
Time deposits, certificates of deposit and demand deposits with banks	$ 113	$ 279
Money market investments	131	512
Other	1	3
Total short-term investments	$ 245	$ 794

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Equity-Based Compensation Information Related to Stock Options (Details) (USD $) In Millions, except Share data in Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Equity-based compensation
Pretax expense for stock options	$ 12	$ 11	$ 7
After-tax expense for stock options	8	7	5
Proceeds from stock options exercised	54	121	95
Income tax benefit related to stock options exercised
Tax benefit classified in operating activities in the Consolidated Statements of Cash Flows	4	3	5
Excess tax benefit classified in financing activities in the Consolidated Statements of Cash Flows	15	22	13
Intrinsic value of stock options exercised	55	102	60
Total fair value of stock options vesting	12	11	7
Stock options exercised, shares	1,501	3,565	3,099
Non-vested stock option compensation expense not yet recognized	$ 14
Non-vested stock options weighted-average period for total compensation expense to be recognized	1 year 10 months

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Document and Entity Information Document (USD $) In Billions, except Share data in Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Jan. 31, 2015	Jun. 30, 2014
Entity Information [Line Items]
Entity Registrant Name	Eaton Corp plc
Entity Central Index Key	0001551182
Trading Symbol	ETN
Document Type	10-K
Document Period End Date	Dec. 31, 2014
Amendment Flag	false
Document Fiscal Year Focus	2014
Document Fiscal Period Focus	FY
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			$ 36.7
Entity Ordinary Shares, Shares Outstanding		467.9

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Equity-Based Compensation

12 Months Ended

Dec. 31, 2014

Share-based Compensation [Abstract]

Equity-Based Compensation

EQUITY-BASED COMPENSATION

Restricted Stock Units and Awards

Restricted stock units (RSUs) and restricted stock awards (RSAs) have been issued to certain employees and directors. Participants awarded RSUs do not receive dividends; therefore, the fair value is determined by reducing the closing market price of the Company’s ordinary shares on the date of grant by the present value of the estimated dividends had they been paid. The RSUs entitle the holder to receive one ordinary share for each RSU upon vesting, generally over three or four years. The fair value of RSAs is determined based on the closing market price of the Company’s ordinary shares at the date of grant. RSAs are issued and outstanding at the time of grant, but remain subject to forfeiture until vested, generally over three or four years. A summary of the RSU and RSA activity for 2014 follows:

(Restricted stock units and awards in millions)	Number of restricted stock units and awards		Weighted-average fair value per unit and award
Non-vested at January 1	3.4		$	51.37
Granted	1.0		71.54
Vested	(1.4	)	47.69
Forfeited	(0.2	)	59.01
Non-vested at December 31	2.8		$	60.11

Information related to RSUs and RSAs follows:

	2014		2013		2012
Pretax expense for RSUs and RSAs	$	81	$	69	$	46
After-tax expense for RSUs and RSAs	53		45		30
Fair value of vested RSUs and RSAs	105		82		126

As of December 31, 2014, total compensation expense not yet recognized related to non-vested RSUs and RSAs was $93.9, and the weighted-average period in which the expense is expected to be recognized is 2.3 years. Excess tax benefit for equity-based compensation totaled $5, $10, and $18 for 2014, 2013 and 2012, respectively.

Stock Options

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

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

	2014			2013			2012
Expected volatility	34		%	36		%	35		%
Expected option life in years	5.5			5.5			5.5
Expected dividend yield	2.4		%	2.0		%	2.0		%
Risk-free interest rate	1.7 to 1.5%			1.5 to 0.8%			1.0 to 0.9%
Weighted-average fair value of stock options granted	$	19.46		$	17.49		$	14.08

A summary of stock option activity follows:

(Options in millions)	Weighted-average exercise price per option		Options		Weighted-average remaining contractual life in years	Aggregate intrinsic value
Outstanding at January 1, 2014	$	43.43	7.9
Granted	75.25		0.6
Exercised	37.75		(1.5	)
Forfeited and canceled	59.33		—
Outstanding at December 31, 2014	$	47.30	7.0		4.3	$	148.9
Exercisable at December 31, 2014	$	42.74	5.7		3.3	$	142.7
Reserved for future grants at December 31, 2014			14.3

The aggregate intrinsic value in the table above represents the total excess of the $67.96 closing price of Eaton ordinary shares on the last trading day of 2014 over the exercise price of the stock option, multiplied by the related number of options outstanding and exercisable. The aggregate intrinsic value is not recognized for financial accounting purposes and the value changes based on the daily changes in the fair market value of the Company's ordinary shares.

Information related to stock options follows:

	2014		2013		2012
Pretax expense for stock options	$	12	$	11	$	7
After-tax expense for stock options	8		7		5
Proceeds from stock options exercised	54		121		95
Income tax benefit related to stock options exercised
Tax benefit classified in operating activities in the Consolidated    Statements of Cash Flows	4		3		5
Excess tax benefit classified in financing activities in the    Consolidated Statements of Cash Flows	15		22		13
Intrinsic value of stock options exercised	55		102		60
Total fair value of stock options vesting	$	12	$	11	$	7
Stock options exercised, in millions of options	1.501		3.565		3.099

As of December 31, 2014, total compensation expense not yet recognized related to non-vested stock options was $14, and the weighted-average period in which the expense is expected to be recognized is 1.8 years.

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Income Taxes Summary of Gross Unrecognized Income Tax Benefits (Details) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Gross Unrecognized Income Tax Benefits [Line Items]
Balance at January 1	$ 479	$ 444	$ 236
Increases and decreases as a result of positions taken during prior years
Transfers from valuation allowances	(3)	13	0
Other increases	37	7	1
Other decreases, including currency translation	(3)	(7)	0
Balances related to acquired businesses	(3)	2	177
Increases as a result of positions taken during the current year	65	35	36
Decreases relating to settlements with tax authorities	(51)	(6)	0
Decreases as a result of a lapse of the applicable statute of limitations	(28)	(9)	(6)
Balance at December 31	$ 493	$ 479	$ 444

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Equity-Based Compensation Stock Options Activity (Details) (USD $) In Millions, except Per Share data, unless otherwise specified	12 Months Ended
	Dec. 31, 2014
Equity-based compensation
Closing price of Eaton ordinary shares on last trading day	$ 67.96
Weighted-average exercise price per option [Member]
Equity-based compensation
Outstanding at January 1, 2014	$ 43.43
Granted	$ 75.25
Exercised	$ 37.75
Forfeited and cancelled	$ 59.33
Outstanding at December, 31 2014	$ 47.30
Exercisable at December 31, 2014	$ 42.74
Stock Options [Member]
Equity-based compensation
Outstanding at January 1, 2014, shares	7.9
Granted, shares	0.6
Exercised, shares	(1.5)
Forfeited and cancelled, shares	0
Outstanding at December 31, 2014, shares	7.0
Exercisable at December 31, 2014, shares	5.7
Reserved for future grants at December 31, 2014, shares	14.3
Weighted-average remaining contractual life in years [Member]
Equity-based compensation
Outstanding at December 31, 2014	4 years 4 months
Exercisable at December 31, 2014	3 years 4 months
Aggregate Intrinsic Value [Member]
Equity-based compensation
Outstanding at December 31, 2014	$ 148.9
Exercisable at December 31, 2014	$ 142.7

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Consolidated Balance Sheets Parentheticals In Millions, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
Ordinary shares outstanding	467.9	475.1

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Goodwill and Other Intangible Assets

12 Months Ended

Dec. 31, 2014

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL AND OTHER INTANGIBLE ASSETS

GOODWILL AND OTHER INTANGIBLE ASSETS

Changes in the carrying amount of goodwill by segment follow:

	Electrical Products			Electrical Systems and Services			Hydraulics			Aerospace			Vehicle			Total
December 31, 2012	$	7,117		$	4,520		$	1,404		$	1,045		$	357		$	14,443
Additions	1			22			4			—			—			27
Translation adjustments	71			(25		)	(23		)	3			(1		)	25
December 31, 2013	7,189			4,517			1,385			1,048			356			14,495
Goodwill written off from    sale of businesses	—			—			—			(78		)	—			(78		)
Translation adjustments	(249		)	(203		)	(58		)	(8		)	(6		)	(524		)
December 31, 2014	$	6,940		$	4,314		$	1,327		$	962		$	350		$	13,893

A summary of other intangible assets follows:

	2014				2013
	Historical cost		Accumulated amortization		Historical cost		Accumulated amortization
Intangible assets not subject to amortization
Trademarks	$	1,844			$	1,868
Intangible assets subject to amortization
Customer relationships	$	3,674	$	834	$	3,859	$	669
Patents and technology	1,494		440		1,588		389
Trademarks	980		250		1,052		215
Other	103		15		103		11
Total intangible assets subject to amortization	$	6,251	$	1,539	$	6,602	$	1,284

Amortization expense related to intangible assets subject to amortization in 2014, and estimated amortization expense for each of the next five years, follows:

2014	$	424
2015	410
2016	397
2017	387
2018	367
2019	360

Other Intangible Assets Related to the Acquisition of Cooper

The estimated fair values of other intangible assets acquired in the Cooper transaction and included in the table above were determined using an income valuation approach, which requires a forecast of expected future cash flows either through the use of the relief-from-royalty method or the multi-period excess earnings method. The final adjusted estimated fair value, as of November 30, 2012, of these identifiable intangible assets, their estimated useful lives and valuation methodology are as follows:

	Fair value		Useful life	Valuation method
Trade names (indefinite-lived)	$	1,410	N/A	Relief-from-royalty
Trade names	638		3-20	Relief-from-royalty
Customer relationships	2,510		13-18	Multi-period excess earnings
Technology	767		4-20	Relief-from-royalty; Multi-period excess earnings
Contract-based	44		9.5	Relief-from-royalty
	$	5,369

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Acquisition Integration and Restructuring Charges

12 Months Ended

Dec. 31, 2014

Acquisition Integration and Restructuring Charges [Abstract]

Acquisition Integration and Restructuring Charges

ACQUISITION INTEGRATION AND RESTRUCTURING CHARGES

Acquisition Integration Charges and Transaction Costs

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

	2014		2013		2012
Acquisition integration charges
Electrical Products	$	66	$	44	$	4
Electrical Systems and Services	51		37		13
Hydraulics	12		36		16
Total business segments	129		117		33
Corporate	25		37		11
Total acquisition integration charges	154		154		44
Transaction costs
Corporate	—		8		106
Financing fees	—		1		72
Total transaction costs	—		9		178
Total acquisition integration charges and transaction costs    before income taxes	$	154	$	163	$	222
Total after income taxes	$	102	$	110	$	167
Per ordinary share - diluted	$	0.21	$	0.23	$	0.48

Business segment integration charges in 2014 related primarily to the integration of Cooper. Business segment integration charges in 2013 related primarily to the integrations of Cooper and Polimer Kaucuk Sanayi ve Pazarlama (SEL). Business segment integration charges in 2012 related primarily to the integrations of SEL, Jeil Hydraulics, Cooper, and Internormen Technology Group. 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 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, and 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 and 2012 related to the acquisition of Cooper and were included in Corporate above. These charges were included in Selling and administrative expense, Interest expense - net and Other (income) expense - 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 the fourth quarter of 2012, Eaton undertook restructuring activities to improve the efficiency of certain businesses. These actions resulted in a charge in the fourth quarter of 2012 of $50, comprised of severance costs totaling $34 and other non-cash expenses totaling $16, of which $2, $2, $17, $17, $4 and $8 were recognized in the Electrical Products, Electrical Systems and Services, Vehicle, Hydraulics, and Aerospace business segments and Corporate, respectively.

During 2014 and 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 of $95 during 2014, comprised of severance costs totaling $69 and other expenses totaling $26, of which $53 and $42 were recognized in the Electrical Products and Electrical Systems and Services business segments, respectively. During 2013, these actions, comprised primarily of severance costs, resulted in charges of $36, of which $19 and $17 were recognized in the Electrical Products and Electrical Systems and Services business segments, respectively. These restructuring initiatives are expected to continue through 2015. These charges are included in the table above in acquisition integration charges.

During 2014, Eaton undertook additional restructuring activities in an effort to gain efficiencies in operations. These actions resulted in charges of $54 during 2014, comprised of severance costs totaling $48 and other expenses totaling $6, of which $32, $16, $2 and $4 were recognized in the Vehicle, Hydraulics and Aerospace business segments, and Corporate, respectively.

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 14 for additional information about business segments. As of December 31, 2014 and 2013, the liabilities related to these restructuring actions totaled $84 and $32, respectively.

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Condensed Consolidating Financial Statements

12 Months Ended

Dec. 31, 2014

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

Condensed Consolidating Financial Statements [Text Block]

CONDENSED CONSOLIDATING FINANCIAL STATEMENTS

On November 20, 2012, Eaton Corporation issued senior notes totaling $4,900 to finance part of the cash portion of the acquisition of Cooper. On November 14, 2013, the senior notes were exchanged for senior notes registered under the Securities Act of 1933 (the Senior Notes). Eaton and certain other of Eaton's 100% owned direct and indirect subsidiaries (the Guarantors) fully and unconditionally guaranteed (subject, in the case of the Guarantors, other than Eaton, to customary release provisions as described below), on a joint and several basis, the Senior Notes. The following condensed consolidating financial statements are included so that separate financial statements of Eaton, Eaton Corporation and each of the Guarantors are not required to be filed with the Securities and Exchange Commission. The consolidating adjustments primarily relate to eliminations of investments in subsidiaries and intercompany balances and transactions. The condensed consolidating financial statements present investments in subsidiaries using the equity method of accounting. See Note 5 for additional information related to the Senior Notes.

The guarantee of a Guarantor that is not a parent of the issuer will be automatically and unconditionally released and discharged in the event of any sale of the Guarantor or of all or substantially all of its assets, or in connection with the release or termination of the Guarantor as a guarantor under all other U.S. debt securities or U.S. syndicated credit facilities, subject to limitations set forth in the indenture. The guarantee of a Guarantor that is a direct or indirect parent of the issuer will only be automatically and unconditionally released and discharged in connection with the release or termination of such Guarantor as a guarantor under all other debt securities or syndicated credit facilities (in both cases, U.S. or otherwise), subject to limitations set forth in the indenture.

Eaton was incorporated under the laws of Ireland on May 10, 2012, and became the successor registrant to Eaton Corporation on November 30, 2012 in connection with the acquisition of Cooper. Therefore, for presentation purposes of entities under common control, Eaton is presented as the parent company in the 2012 condensed consolidating financial statements.

During the third quarter of 2014, the Company undertook certain steps to restructure ownership of various subsidiaries. The transactions were entirely among wholly-owned subsidiaries under the common control of Eaton. This restructuring has been reflected as of the beginning of the earliest period presented below.

CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME YEAR ENDED DECEMBER 31, 2014
	Eaton Corporation plc			Eaton Corporation			Guarantors			Other subsidiaries			Consolidating adjustments			Total
Net sales	$	—		$	6,990		$	6,885		$	13,521		$	(4,844	)	$	22,552
Cost of products sold	—			5,519			5,075			9,882			(4,830		)	15,646
Selling and administrative expense	171			1,246			743			1,650			—			3,810
Litigation settlements	—			644			—			—			—			644
Research and development expense	—			240			202			205			—			647
Interest expense (income) - net	—			225			25			(29		)	6			227
Other income - net	—			(17		)	(81		)	(85		)	—			(183		)
Equity in (earnings) loss of    subsidiaries, net of tax	(2,191		)	(674		)	(2,655		)	(302		)	5,822			—
Intercompany expense    (income) - net	227			(263		)	855			(819		)	—			—
Income before income taxes	1,793			70			2,721			3,019			(5,842		)	1,761
Income tax (benefit) expense	—			(100		)	76			(11		)	(7		)	(42		)
Net income	1,793			170			2,645			3,030			(5,835		)	1,803
Less net income for    noncontrolling interests	—			—			—			(8		)	(2		)	(10		)
Net income attributable to    Eaton ordinary shareholders	$	1,793		$	170		$	2,645		$	3,022		$	(5,837	)	$	1,793
Other comprehensive loss	(1,339		)	(195		)	(1,367		)	(1,644		)	3,206			(1,339		)
Total comprehensive income    (loss) attributable to Eaton    ordinary shareholders	$	454		$	(25	)	$	1,278		$	1,378		$	(2,631	)	$	454

CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME YEAR ENDED DECEMBER 31, 2013
	Eaton Corporation plc			Eaton Corporation			Guarantors			Other subsidiaries			Consolidating adjustments			Total
Net sales	$	—		$	6,695		$	6,421		$	13,579		$	(4,649	)	$	22,046
Cost of products sold	—			5,227			4,784			10,010			(4,652		)	15,369
Selling and administrative expense	32			1,400			749			1,705			—			3,886
Research and development expense	—			255			200			189			—			644
Interest expense (income) - net	—			271			28			(22		)	(6		)	271
Other expense (income) - net	—			8			4			(20		)	—			(8		)
Equity in (earnings) loss of    subsidiaries, net of tax	(2,147		)	(668		)	(2,006		)	(288		)	5,109			—
Intercompany expense (income) - net	254			(155		)	(433		)	334			—			—
Income before income taxes	1,861			357			3,095			1,671			(5,100		)	1,884
Income tax (benefit) expense	—			(108		)	(90		)	207			2			11
Net income	1,861			465			3,185			1,464			(5,102		)	1,873
Less net income for    noncontrolling interests	—			—			—			(9		)	(3		)	(12		)
Net income attributable to    Eaton ordinary shareholders	$	1,861		$	465		$	3,185		$	1,455		$	(5,105	)	$	1,861
Other comprehensive income	404			219			474			258			(951		)	404
Total comprehensive income    attributable to Eaton    ordinary shareholders	$	2,265		$	684		$	3,659		$	1,713		$	(6,056	)	$	2,265

CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME YEAR ENDED DECEMBER 31, 2012
	Eaton Corporation plc			Eaton Corporation			Guarantors			Other subsidiaries			Consolidating adjustments			Total
Net sales	$	—		$	6,680		$	2,849		$	10,346		$	(3,564	)	$	16,311
Cost of products sold	—			5,115			2,193			7,708			(3,568		)	11,448
Selling and administrative expense	—			1,307			335			1,252			—			2,894
Research and development expense	—			230			108			101			—			439
Interest expense (income) - net	—			229			8			(29		)	—			208
Other income - net	—			10			48			13			—			71
Equity in (earnings) loss of    subsidiaries, net of tax	(1,219		)	(236		)	(1,292		)	(123		)	2,870			—
Intercompany expense (income) - net	2			(237		)	42			193			—			—
Income before income taxes	1,217			262			1,407			1,231			(2,866		)	1,251
Income tax expense	—			24			—			6			1			31
Net income	1,217			238			1,407			1,225			(2,867		)	1,220
Less net income for    noncontrolling interests	—			—			—			(3		)	—			(3		)
Net income attributable to    Eaton ordinary shareholders	$	1,217		$	238		$	1,407		$	1,222		$	(2,867	)	$	1,217
Other comprehensive (loss) income	—			(27		)	(17		)	82			(38		)	—
Total comprehensive income    (loss) attributable to Eaton    ordinary shareholders	$	1,217		$	211		$	1,390		$	1,304		$	(2,905	)	$	1,217

CONDENSED CONSOLIDATING BALANCE SHEETS DECEMBER 31, 2014
	Eaton Corporation plc		Eaton Corporation		Guarantors		Other subsidiaries		Consolidating adjustments			Total
Assets
Current assets
Cash	$	1	$	173	$	13	$	594	$	—		$	781
Short-term investments	—		—		1		244		—			245
Accounts receivable - net	—		500		955		2,212		—			3,667
Intercompany accounts receivable	2		759		3,820		4,101		(8,682		)	—
Inventory	—		397		637		1,445		(51		)	2,428
Prepaid expenses and other    current assets	—		464		171		340		4			979
Total current assets	3		2,293		5,597		8,936		(8,729		)	8,100
Property, plant and equipment - net	—		972		756		2,022		—			3,750
Other noncurrent assets
Goodwill	—		1,355		6,256		6,282		—			13,893
Other intangible assets	—		196		3,811		2,549		—			6,556
Deferred income taxes	—		889		10		137		(808		)	228
Investment in subsidiaries	26,612		12,179		58,687		9,145		(106,623		)	—
Intercompany loans receivable	—		7,542		2,249		40,635		(50,426		)	—
Other assets	—		533		141		328		—			1,002
Total assets	$	26,615	$	25,959	$	77,507	$	70,034	$	(166,586	)	$	33,529
Liabilities and shareholders’    equity
Current liabilities
Short-term debt	$	—	$	—	$	—	$	2	$	—		$	2
Current portion of long-term debt	—		702		304		2		—			1,008
Accounts payable	—		475		340		1,125		—			1,940
Intercompany accounts payable	117		4,125		3,449		991		(8,682		)	—
Accrued compensation	—		112		59		249		—			420
Other current liabilities	1		674		340		984		(14		)	1,985
Total current liabilities	118		6,088		4,492		3,353		(8,696		)	5,355
Noncurrent liabilities
Long-term debt	—		7,079		932		13		—			8,024
Pension liabilities	—		726		183		903		—			1,812
Other postretirement benefits    liabilities	—		283		136		94		—			513
Deferred income taxes	—		—		1,160		549		(808		)	901
Intercompany loans payable	10,711		2,723		36,162		830		(50,426		)	—
Other noncurrent liabilities	—		457		183		445		—			1,085
Total noncurrent liabilities	10,711		11,268		38,756		2,834		(51,234		)	12,335
Shareholders’ equity
Eaton shareholders' equity	15,786		8,603		34,259		63,802		(106,664		)	15,786
Noncontrolling interests	—		—		—		45		8			53
Total equity	15,786		8,603		34,259		63,847		(106,656		)	15,839
Total liabilities and equity	$	26,615	$	25,959	$	77,507	$	70,034	$	(166,586	)	$	33,529

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		3,369		4,469		(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		5,219		10,049		(8,342		)	8,731
Property, plant and equipment - net	—		982		761		2,090		—			3,833
Other noncurrent assets
Goodwill	—		1,382		6,294		6,819		—			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		4,743		38,039		1,576		(69,298		)	—
Intercompany loans receivable	—		8,019		2,312		18,822		(29,153		)	—
Other assets	—		450		186		370		—			1,006
Total assets	$	24,948	$	18,423	$	56,810	$	42,850	$	(107,540	)	$	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		3,734		3,266		1,310		(8,314		)	—
Accrued compensation	—		140		37		284		—			461
Other current liabilities	5		547		400		965		(4		)	1,913
Total current liabilities	9		5,413		4,083		3,727		(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		18,253		639		(29,153		)	—
Other noncurrent liabilities	—		652		161		486		—			1,299
Total noncurrent liabilities	8,148		11,406		21,285		2,781		(29,906		)	13,714
Shareholders’ equity
Eaton shareholders' equity	16,791		1,604		31,442		36,276		(69,322		)	16,791
Noncontrolling interests	—		—		—		66		6			72
Total equity	16,791		1,604		31,442		36,342		(69,316		)	16,863
Total liabilities and equity	$	24,948	$	18,423	$	56,810	$	42,850	$	(107,540	)	$	35,491

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS DECEMBER 31, 2014
	Eaton Corporation plc			Eaton Corporation			Guarantors			Other subsidiaries			Consolidating adjustments			Total
Net cash (used in) provided by    operating activities	$	(93	)	$	(411	)	$	(218	)	$	2,568		$	32		$	1,878
Investing activities
Capital expenditures for property,    plant and equipment	—			(127		)	(168		)	(337		)	—			(632		)
Cash received from acquisitions of    businesses, net of cash paid	—			—			—			2			—			2
Sales of short-term investment - net	—			—			133			389			—			522
Investments in affiliates	(753		)	—			—			(753		)	1,506			—
Loans to affiliates	—			(354		)	(162		)	(10,546		)	11,062			—
Repayments of loans from affiliates	—			978			212			8,451			(9,641		)	—
Proceeds from the sales    of businesses	—			93			175			14			—			282
Other - net	—			(47		)	44			(28		)	—			(31		)
Net cash (used in) provided by     investing activities	(753		)	543			234			(2,808		)	2,927			143
Financing activities
Payments on borrowings	—			(553		)	(1		)	(28		)	—			(582		)
Proceeds from borrowings from    affiliates	2,628			7,599			808			27			(11,062		)	—
Payments on borrowings from    affiliates	(476		)	(6,907		)	(1,875		)	(383		)	9,641			—
Capital contribution from affiliates	—			—			753			753			(1,506		)	—
Other intercompany financing    activities	217			(169		)	302			(350		)	—			—
Cash dividends paid	(929		)	—			—			—			—			(929		)
Cash dividends received from    affiliates	—			—			—			32			(32		)	—
Exercise of employee stock    options	54			—			—			—			—			54
(Repurchase) of shares	(650		)	—			—			—			—			(650		)
Excess tax benefit from    equity-based compensation	—			20			—			—			—			20
Other - net	—			—			—			(43		)	—			(43		)
Net cash provided by (used in)    financing activities	844			(10		)	(13		)	8			(2,959		)	(2,130		)
Effect of currency on cash	—			—			—			(25		)	—			(25		)
Total (decrease) increase in cash	(2		)	122			3			(257		)	—			(134		)
Cash at the beginning of the period	3			51			10			851			—			915
Cash at the end of the period	$	1		$	173		$	13		$	594		$	—		$	781

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS DECEMBER 31, 2013
	Eaton Corporation plc			Eaton Corporation			Guarantors			Other subsidiaries			Consolidating adjustments			Total
Net cash (used in) provided by    operating activities	$	(17	)	$	860		$	428		$	1,067		$	(53	)	$	2,285
Investing activities
Capital expenditures for property,    plant and equipment	—			(171		)	(119		)	(324		)	—			(614		)
Cash paid for acquisitions of    businesses, net of cash acquired	—			—			—			(9		)	—			(9		)
Sales (purchases) of short-term    investments - net	—			25			(95		)	(218		)	—			(288		)
Loans to affiliates	—			(535		)	(545		)	(6,215		)	7,295			—
Repayments of loans from affiliates	—			36			626			5,795			(6,457		)	—
Proceeds from the sales    of businesses	—			—			—			777			—			777
Other - net	—			(41		)	(12		)	(15		)	—			(68		)
Net cash (used in)     investing activities	—			(686		)	(145		)	(209		)	838			(202		)
Financing activities
Proceeds from borrowings	—			—			—			9			—			9
Payments on borrowings	—			(1,048		)	(43		)	(5		)	—			(1,096		)
Proceeds from borrowings from    affiliates	—			2,395			4,260			640			(7,295		)	—
Payments on borrowings from    affiliates	—			(2,921		)	(2,874		)	(662		)	6,457			—
Other intercompany financing    activities	688			1,365			(1,630		)	(423		)	—			—
Cash dividends paid	(796		)	—			—			—			—			(796		)
Cash dividends paid to affiliates	—			—			—			(53		)	53			—
Exercise of employee stock options	121			—			—			—			—			121
Excess tax benefit from equity-based    compensation	—			32			—			—			—			32
Other - net	—			—			—			(6		)	—			(6		)
Net cash provided by (used in)    financing activities	13			(177		)	(287		)	(500		)	(785		)	(1,736		)
Effect of currency on cash	—			—			—			(9		)	—			(9		)
Total (decrease) increase in cash	(4		)	(3		)	(4		)	349			—			338
Cash at the beginning of the period	7			54			14			502			—			577
Cash at the end of the period	$	3		$	51		$	10		$	851		$	—		$	915

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS DECEMBER 31, 2012
	Eaton Corporation plc			Eaton Corporation			Guarantors			Other subsidiaries			Consolidating adjustments			Total
Net cash (used in) provided by    operating activities	$	(60	)	$	1,037		$	217		$	487		$	(17	)	$	1,664
Investing activities
Capital expenditures for property,    plant and equipment	—			(291		)	(73		)	(229		)	—			(593		)
Cash (paid for) received from    acquisitions of businesses, net of    cash acquired	(6,542		)	—			11			(405		)	—			(6,936		)
Sales of short-term    investments - net	—			175			210			218			—			603
Loans to affiliates	—			(6,693		)	—			(8,054		)	14,747			—
Repayments of loans from affiliates	—			268			—			8,175			(8,443		)	—
Proceeds from the sales of    businesses	—			2			—			1			—			3
Other - net	—			(28		)	2			(23		)	—			(49		)
Net cash (used in) provided by    investing activities	(6,542		)	(6,567		)	150			(317		)	6,304			(6,972		)
Financing activities
Proceeds from borrowings	—			7,156			—			—			—			7,156
Payments on borrowings	—			(1,306		)	(16		)	(2		)	—			(1,324		)
Payments of financing costs	—			(117		)	—			—			—			(117		)
Proceeds from borrowings from    affiliates	5			8,054			6,425			263			(14,747		)	—
Payments on borrowings from    affiliates	(5		)	(8,175		)	—			(263		)	8,443			—
Other intercompany financing    activities	—			273			(340		)	67			—			—
Cash dividends paid	—			(512		)	—			—			—			(512		)
Cash dividends paid to affiliates	—			—			—			(17		)	17			—
Exercise of employee stock options	25			70			—			—			—			95
Issuance (repurchase) of shares	6,584			—			(6,425		)	—			—			159
Excess tax benefit from equity-based    compensation	—			21			—			—			—			21
Other - net	—			—			—			2			—			2
Net cash provided by (used in)    financing activities	6,609			5,464			(356		)	50			(6,287		)	5,480
Effect of currency on cash	—			—			—			20			—			20
Total increase (decrease) in cash	7			(66		)	11			240			—			192
Cash at the beginning of the period	—			120			3			262			—			385
Cash at the end of the period	$	7		$	54		$	14		$	502		$	—		$	577

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Fair Value Measurements

12 Months Ended

Dec. 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)
2014
Cash	$	781		$	781	$	—		$	—
Short-term investments	245			245		—			—
Net derivative contracts	70			—		70			—
Long-term debt converted to floating interest rates by    interest rate swaps - net	(74		)	—		(74		)	—
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 $9,032 and fair value of $9,509 at December 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.

Short-Term Investments

Eaton invests excess cash generated from operations in short-term marketable investments. For those investments classified as “available-for-sale”, Eaton marks these investments to fair value with the offset recognized in Accumulated other comprehensive loss. A summary of the carrying value of short-term investments follows:

	2014		2013
Time deposits, certificates of deposit and demand deposits with banks	$	113	$	279
Money market investments	131		512
Other	1		3
Total short-term investments	$	245	$	794

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Eaton Shareholders' Equity Eaton Shareholders' Equity - Reclassifications Out of Accumulated Other Comprehensive Income (Loss) (Details) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2014		Dec. 31, 2013	Dec. 31, 2012
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items]
Floating-to-fixed interest rate swaps	$ (227)		$ (271)	$ (208)
Currency exchange contracts	15,646		15,369	11,448
Gain and losses on cash flow hedges, total reclassifications pre-tax	1,761		1,884	1,251
Tax benefit (expense)	42		(11)	(31)
Total reclassifications, net of tax	1,793		1,861	1,217
Reclassification out of Accumulated Other Comprehensive Loss [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items]
Total reclassifications, net of tax	(107)
Reclassification out of Accumulated Other Comprehensive Loss [Member] | Amortization of defined benefit pension and other postretirement benefits items [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items]
Actuarial loss and prior service cost	(168)	[1]
Tax benefit (expense)	58
Total reclassifications, net of tax	(110)
Reclassification out of Accumulated Other Comprehensive Loss [Member] | Gains and losses on cash flow hedges [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items]
Gain and losses on cash flow hedges, total reclassifications pre-tax	5
Tax benefit (expense)	(2)
Total reclassifications, net of tax	3
Reclassification out of Accumulated Other Comprehensive Loss [Member] | Floating-to-fixed interest rate swaps [Member] | Gains and losses on cash flow hedges [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items]
Floating-to-fixed interest rate swaps	(1)
Reclassification out of Accumulated Other Comprehensive Loss [Member] | Currency exchange contracts [Member] | Gains and losses on cash flow hedges [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items]
Currency exchange contracts	$ 6

[1] These components of Accumulated other comprehensive loss are included in the computation of net periodic benefit cost. See Note 6 for additional information about defined benefit pension and other postretirement benefits items.

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Commitments and Contingencies

12 Months Ended

Dec. 31, 2014

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

COMMITMENTS AND CONTINGENCIES

Legal Contingencies

Eaton is subject to a broad range of claims, administrative and legal proceedings such as lawsuits that relate to contractual allegations, tax audits, patent infringement, personal injuries, antitrust matters, and employment-related matters. Eaton is also subject to asbestos claims from historic products which may have contained asbestos. Historically, significant insurance coverage has been available to cover costs associated with these claims. Although it is not possible to predict with certainty the outcome or cost of these matters, the Company believes they will not have a material adverse effect on the consolidated financial statements.

In December 2010, a Brazilian court held that a judgment obtained by a Brazilian company, Raysul, against another Brazilian company, Saturnia, which was sold by Eaton in 2006, could be enforced against Eaton Ltda. This judgment is based on an alleged violation of an agency agreement between Raysul and Saturnia. At December 31, 2014, the Company has a total accrual of 83 Brazilian Reais related to this matter ($31 based on current exchange rates), comprised of 60 Brazilian Reais recognized in the fourth quarter of 2010 ($23 based on current exchange rates) with an additional 23 Brazilian Reais recognized through December 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 were filed with the Superior Court of Justice in Brasilia and were again denied in 2014. A final appeal to the Superior Court will likely be filed in the first quarter of 2015. 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. On June 23, 2014, Eaton announced it signed a settlement agreement with Meritor in the amount of $500 that resolved the lawsuit and removed the uncertainty of a trial and appeal process. On July 16, 2014, Eaton paid Meritor the $500.

Frisby Corporation, now known as Triumph Actuation Systems, LLC, and other claimants (collectively, Triumph) 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 Triumph regarding improper use of trade secrets and these claims were dismissed by the Hinds County Circuit Court. On June 18, 2014, Eaton announced it signed a settlement agreement with Triumph in the amount of $147.5 that resolved all claims and lawsuits and removed the uncertainty of a trial and appeal process. On July 8, 2014, Eaton paid Triumph the $147.5.

Environmental Contingencies

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

Eaton is involved in remedial response and voluntary environmental remediation at a number of sites, including certain of its currently-owned or formerly-owned plants. The Company has also been named a potentially responsible party under the United States federal Superfund law, or the state equivalents thereof, at a number of disposal sites. The Company became involved in these sites as a result of government action or in connection with business acquisitions. At the end of 2014, the Company was involved with a total of 150 sites worldwide, including the Superfund sites mentioned above, with none of these sites being individually significant to the Company.

Remediation activities, generally involving soil and/or groundwater contamination, include pre-cleanup activities such as fact finding and investigation, risk assessment, feasibility study, design and action planning, performance (where actions may range from monitoring, to removal of contaminants, to installation of longer-term remediation systems), and operation and maintenance of a remediation system. The extent of expected remediation activities and costs varies by site. A number of factors affect the cost of environmental remediation, including the number of parties involved at a particular site, the determination of the extent of contamination, the length of time the remediation may require, the complexity of environmental regulations, and the continuing advancement of remediation technology. Taking these factors into account, Eaton has estimated the costs of remediation, which will be paid over a period of years. The Company accrues an amount on an undiscounted basis, consistent with the estimates of these costs when it is probable that a liability has been incurred. Actual results may differ from these estimates. At December 31, 2014 and 2013, the Company had an accrual totaling $140 and $149, respectively, for these costs.

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

Warranty Accruals

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

	2014			2013			2012
Balance at January 1	$	189		$	185		$	158
Provision	125			107			85
Settled	(120		)	(99		)	(84		)
Other	19			(4		)	26
Balance at December 31	$	213		$	189		$	185

At December 31, 2012, amounts related to the acquisition of Cooper included in Other total $24. For additional information about acquisitions of businesses, see Note 2.

Lease Commitments

Eaton leases certain real properties and equipment. A summary of minimum rental commitments at December 31, 2014 under noncancelable operating leases, which expire at various dates and in most cases contain renewal options, for each of the next five years and thereafter in the aggregate, follow:

2015	$	153
2016	115
2017	83
2018	59
2019	34
Thereafter	60
Total noncancelable lease commitments	$	504

A summary of rental expense follows:

2014	$	244
2013	241
2012	199

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Retirement Benefits Plans - Components of Pension Plans with Accumulated Benefit Obligation in Excess of Plan Assets (Details 3) (USD $) In Millions, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
United States pension liabilities [Member]
Components of pension plans with an accumulated benefit obligation in excess of plan assets
Projected benefit obligation	$ 3,557	$ 3,166
Accumulated benefit obligation	3,403	2,999
Fair value of plan assets	2,581	2,437
Non-United States pension liabilities [Member]
Components of pension plans with an accumulated benefit obligation in excess of plan assets
Projected benefit obligation	1,524	1,411
Accumulated benefit obligation	1,446	1,349
Fair value of plan assets	$ 673	$ 635

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Debt

12 Months Ended

Dec. 31, 2014

Debt Disclosure [Abstract]

DEBT

DEBT

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

	2014			2013
5.95% notes due 2014	$	—		$	250
Floating rate notes due 2014	—			300
5.45% debentures due 2015	300			300
4.65% notes due 2015	100			100
0.95% senior notes due 2015	600			600
2.375% debentures due 2016	240			240
5.30% notes due 2017 ($150 converted to floating rate by interest rate swap)	250			250
6.10% debentures due 2017	289			289
1.50% senior notes due 2017 ($650 converted to floating rate by interest rate swap)	1,000			1,000
5.60% notes due 2018 ($415 converted to floating rate by interest rate swap)	450			450
4.215% Japanese Yen notes due 2018	84			95
6.95% notes due 2019 ($300 converted to floating rate by interest rate swap)	300			300
3.875% debentures due 2020 ($150 converted to floating rate by interest rate swap)	239			239
3.47% notes due 2021 ($200 converted to floating rate by interest rate swap)	300			300
8.10% debentures due 2022	100			100
2.75% senior notes due 2022 ($1,250 converted to floating rate by interest rate swap)	1,600			1,600
3.68% notes due 2023 ($200 converted to floating rate by interest rate swap)	300			300
6.50% debentures due 2025	145			145
7.65% debentures due 2029 ($50 converted to floating rate by interest rate swap)	200			200
4.00% senior notes due 2032	700			700
5.45% debentures due 2034 ($25 converted to floating rate by interest rate swap)	136			136
5.80% notes due 2037	240			240
4.15% senior notes due 2042	1,000			1,000
5.25% to 12.5% notes (maturities ranging from 2014 to 2035, including $50 converted to    floating rate by interest rate swap)	239			249
Other	220			153
Total long-term debt	9,032			9,536
Less current portion of long-term debt	(1,008		)	(567		)
Long-term debt less current portion	$	8,024		$	8,969

On October 3, 2014, Eaton refinanced a $500, five-year revolving credit facility and a $750, three-year revolving credit facility with a $500, four-year revolving credit facility that will expire October 3, 2018 and a $750, five-year revolving credit facility that will expire October 3, 2019, respectively. Eaton also maintains a $750, five-year revolving credit facility that will expire June 14, 2017. These refinancings maintain long-term revolving credit facilities at a total of $2,000. The revolving credit facilities are used to support commercial paper borrowings and are fully and unconditionally guaranteed by Eaton and certain of its direct and indirect subsidiaries on an unsubordinated, unsecured basis. There were no borrowings outstanding under Eaton's revolving credit facilities at December 31, 2014 or 2013.

On March 20, 2014 and June 16, 2014, the Company repaid the $250, 5.95% notes due 2014 and the $300, floating rate notes due 2014, respectively.

On November 20, 2012, Eaton issued senior notes totaling $4,900 to finance the cash portion of the acquisition of Cooper. On November 14, 2013, Eaton exchanged these senior notes for senior notes registered under the Securities Act of 1933 (the Senior Notes). The Senior Notes are comprised of five tranches which mature in 2015, 2017, 2022, 2032 and 2042, with interest payable semi-annually at a respective rate of 0.95%, 1.50%, 2.75%, 4.00% and 4.15%. Eaton received proceeds totaling $4,853 from the issuance, net of financing costs and nominal discounts. The Senior Notes are fully and unconditionally guaranteed on an unsubordinated, unsecured basis by Eaton and certain of its direct and indirect subsidiaries. The Senior Notes contain an optional redemption provision by which the Company may make an offer to purchase all or any part of the Senior Notes at a purchase price of the greater of (a) 100% of the principal amount of the respective Senior Notes being redeemed, or (b) the sum of the present values of the respective remaining scheduled payments of principal and interest, discounted to the redemption date on a semi-annual basis, plus basis points ranging from 10 to 25 based on the respective Senior Note tranche. The Senior Notes also contain a change of control provision which requires the Company to make an offer to purchase all or any part of the Senior Notes at a purchase price of 101% of the principal amount plus accrued and unpaid interest. Related capitalized deferred financing fees total $40. The capitalized deferred financing fees and nominal discounts are amortized in Interest expense - net over the respective terms of the Senior Notes. The Senior Notes are subject to customary non-financial covenants. See Note 15 for additional information about the Senior Notes.

On November 30, 2012, the closing date of the acquisition of Cooper, Eaton borrowed $1,669 on a $6.75 billion, 364-day bridge facility (the Facility) which was obtained on May 21, 2012. The Facility was obtained to finance a portion of the cash paid to acquire Cooper and was available in a single draw on the closing date of the acquisition. Related deferred financing fees totaled $69, of which $68 were amortized in Interest expense - net as of December 31, 2012. On February 1, 2013, Eaton repaid the outstanding balance on the Facility.

As is customary to support its U.S. operations, the Company had available lines of credit of $340 from various banks for the issuance of letters of credit, of which there was $155 outstanding at December 31, 2014. Operations outside the United States had available short-term lines of credit of $2,089 from various banks worldwide at December 31, 2014. Borrowings outside the United States are generally denominated in local currencies.

Eaton is in compliance with each of its debt covenants for all periods presented. Eaton Corporation and Cooper each issued guarantees on November 30, 2012 and January 8, 2013, respectively, on all material outstanding debt of the other.

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

2015	$	1,008
2016	242
2017	1,548
2018	570
2019	339

Interest paid on debt follows:

2014	$	296
2013	294
2012	237

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Retirement Benefits Plans

12 Months Ended

Dec. 31, 2014

Compensation and Retirement Disclosure [Abstract]

RETIREMENT BENEFITS PLANS

RETIREMENT BENEFITS PLANS

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

Obligations and Funded Status

	United States pension liabilities						Non-United States pension liabilities						Other postretirement liabilities
	2014			2013			2014			2013			2014			2013
Funded status
Fair value of plan assets	$	3,086		$	2,940		$	1,535		$	1,432		$	116		$	138
Benefit obligations	(4,047		)	(3,625		)	(2,337		)	(2,127		)	(676		)	(867		)
Funded status	$	(961	)	$	(685	)	$	(802	)	$	(695	)	$	(560	)	$	(729	)
Amounts recognized in the Consolidated    Balance Sheets
Non-current assets	$	14		$	44		$	77		$	86		$	—		$	—
Current liabilities	(16		)	(15		)	(26		)	(30		)	(47		)	(61		)
Non-current liabilities	(959		)	(714		)	(853		)	(751		)	(513		)	(668		)
Total	$	(961	)	$	(685	)	$	(802	)	$	(695	)	$	(560	)	$	(729	)
Amounts recognized in Accumulated other    comprehensive loss (pretax)
Net actuarial loss	$	1,377		$	1,051		$	695		$	515		$	176		$	190
Prior service cost (credit)	5			3			11			13			(86		)	(6		)
Total	$	1,382		$	1,054		$	706		$	528		$	90		$	184

Change in Benefit Obligations

	United States pension liabilities						Non-United States pension liabilities						Other postretirement liabilities
	2014			2013			2014			2013			2014			2013
Balance at January 1	$	3,625		$	3,817		$	2,127		$	2,017		$	867		$	950
Service cost	117			128			66			62			13			20
Interest cost	162			147			85			80			32			35
Actuarial loss (gain)	470			(223		)	355			21			(36		)	(54		)
Gross benefits paid	(329		)	(246		)	(106		)	(90		)	(91		)	(103		)
Currency translation	—			—			(190		)	36			(4		)	(2		)
Plan amendments	2			2			—			4			(84		)	—
Other	—			—			—			(3		)	(21		)	21
Balance at December 31	$	4,047		$	3,625		$	2,337		$	2,127		$	676		$	867
Accumulated benefit obligation	$	3,894		$	3,458		$	2,181		$	2,003

Change in Plan Assets

	United States pension liabilities						Non-United States pension liabilities						Other postretirement liabilities
	2014			2013			2014			2013			2014			2013
Balance at January 1	$	2,940		$	2,607		$	1,432		$	1,248		$	138		$	146
Actual return on plan assets	226			383			191			118			4			15
Employer contributions	248			196			114			145			40			59
Gross benefits paid	(329		)	(246		)	(106		)	(90		)	(91		)	(103		)
Currency translation	—			—			(96		)	15			—			—
Other	1			—			—			(4		)	25			21
Balance at December 31	$	3,086		$	2,940		$	1,535		$	1,432		$	116		$	138

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

	United States pension liabilities				Non-United States pension liabilities
	2014		2013		2014		2013
Projected benefit obligation	$	3,557	$	3,166	$	1,524	$	1,411
Accumulated benefit obligation	3,403		2,999		1,446		1,349
Fair value of plan assets	2,581		2,437		673		635

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

	United States pension liabilities						Non-United States pension liabilities						Other postretirement liabilities
	2014			2013			2014			2013			2014			2013
Balance at January 1	$	1,054		$	1,621		$	528		$	559		$	184		$	262
Prior service cost arising during the year	2			2			—			4			(84		)	—
Net loss (gain) arising during the year	490			(381		)	262			(12		)	(34		)	(63		)
Currency translation	—			—			(55		)	6			(1		)	(1		)
Less amounts included in expense during the year	(164		)	(186		)	(29		)	(29		)	25			(14		)
Other	—			(2		)	—			—			—			—
Net change for the year	328			(567		)	178			(31		)	(94		)	(78		)
Balance at December 31	$	1,382		$	1,054		$	706		$	528		$	90		$	184

Benefits Expense

	United States pension benefit expense									Non-United States pension benefit expense									Other postretirement benefits expense
	2014			2013			2012			2014			2013			2012			2014			2013			2012
Service cost	$	117		$	128		$	115		$	66		$	62		$	50		$	13		$	20		$	17
Interest cost	162			147			134			85			80			77			32			35			38
Expected return on plan assets	(246		)	(226		)	(183		)	(98		)	(85		)	(77		)	(6		)	(6		)	(6		)
Amortization	93			133			118			27			27			15			6			14			13
	126			182			184			80			84			65			45			63			62
Settlements, curtailments    and other	71			53			20			2			2			4			(31		)	—			—
Total expense	$	197		$	235		$	204		$	82		$	86		$	69		$	14		$	63		$	62

The estimated pretax net amounts that will be recognized from Accumulated other comprehensive loss into net periodic benefit cost in 2015 follow:

	United States pension liabilities		Non-United States pension liabilities		Other postretirement liabilities
Actuarial loss	$	168	$	39	$	15
Prior service cost (credit)	1		1		(14		)
Total	$	169	$	40	$	1

Retirement Benefits Plans Assumptions

For purposes of determining liabilities related to pension plans and other postretirement benefits plans in the United States, the Company updated its mortality assumption in 2014 to use the RP-2014 tables with a generational improvement scale based on MP-2014.

Pension Plans

	United States pension plans						Non-United States pension plans
	2014		2013		2012		2014		2013		2012
Assumptions used to determine benefit obligation at year-end
Discount rate	3.97	%	4.67	%	3.97	%	3.33	%	4.20	%	4.17	%
Rate of compensation increase	3.16	%	3.16	%	3.16	%	3.13	%	3.12	%	3.09	%
Assumptions used to determine expense
Discount rate	4.67	%	3.97	%	4.70	%	4.20	%	4.17	%	5.12	%
Expected long-term return on plan assets	8.40	%	8.45	%	8.50	%	7.00	%	6.92	%	7.10	%
Rate of compensation increase	3.16	%	3.16	%	3.15	%	3.12	%	3.09	%	3.62	%

The expected long-term rate of return on pension assets was determined for each country and reflects long-term historical data taking into account each plan's target asset allocation. The discount rate was determined using appropriate bond data for each country.

Other Postretirement Benefits Plans

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

	Other postretirement benefits plans
	2014		2013		2012
Assumptions used to determine benefit obligation at year-end
Discount rate	3.79	%	4.48	%	3.79	%
Health care cost trend rate assumed for next year	6.31	%	6.64	%	6.96	%
Ultimate health care cost trend rate	4.77	%	4.77	%	4.53	%
Year ultimate health care cost trend rate is achieved	2024		2023		2022
Assumptions used to determine expense
Discount rate	4.48	%	3.79	%	4.60	%
Initial health care cost trend rate	6.64	%	6.96	%	7.60	%
Ultimate health care cost trend rate	4.77	%	4.53	%	4.50	%
Year ultimate health care cost trend rate is achieved	2023		2022		2020

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

	1% increase		1% decrease
Effect on total service and interest cost	$	1	$	(1	)
Effect on other postretirement liabilities	20		(18		)

Employer Contributions to Retirement Benefits Plans

Contributions to pension plans that Eaton expects to make in 2015, and made in 2014, 2013 and 2012, follow:

	2015		2014		2013		2012
United States plans	$	217	$	248	$	196	$	311
Non-United States plans	109		114		145		102
Total contributions	$	326	$	362	$	341	$	413

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

	Estimated United States pension payments		Estimated non-United States pension payments		Estimated other postretirement benefit payments
					Gross		Medicare prescription drug subsidy
2015	$	268	$	92	$	75	$	(6	)
2016	281		92		71		(6		)
2017	285		94		67		(6		)
2018	289		98		62		(5		)
2019	297		99		56		(4		)
2020 - 2024	1,544		542		226		(13		)

Pension Plan Assets

Investment policies and strategies are developed on a country specific basis. The United States plans, representing 67% of worldwide pension assets, and the United Kingdom plans representing 27% of worldwide pension assets, are invested primarily for growth, as the majority of the assets are in plans with active participants and ongoing accruals. In general, the plans have their primary allocation to diversified, global equities, primarily through index funds in the form of common collective trusts. The United States plans' target allocation is 32% United States equities, 32% non-United States equities, 8% real estate (primarily equity of real estate investment trusts), 24% debt securities and 4% other, including hedge funds and cash equivalents. The United Kingdom plans' target asset allocations are 57% equities and the remainder in debt securities and real estate investments. The equity risk for the plans is managed through broad geographic diversification and diversification across industries and levels of market capitalization. The majority of debt allocations for these plans are longer duration government and corporate debt. The United States, United Kingdom and Canada pension plans are authorized to use derivatives to achieve more economically desired market exposures and to use futures, swaps and options to gain or hedge exposures.

Other Postretirement Benefits Plan Assets

The Voluntary Employee Benefit Association trust which holds U.S. other postretirement benefits plan assets has investment guidelines that include allocations to global equities and fixed income investments. The trust's target investment allocation is 50% diversified global equities and 50% fixed income securities. The fixed income securities are primarily comprised of intermediate term, high quality, dollar denominated, fixed income instruments. The equity allocation is invested in a diversified global equity index fund in the form of a collective trust.

Fair Value Measurements

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

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

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

Level 3 - Unobservable prices or inputs.

Pension Plans

A summary of the fair value of pension plan assets at December 31, 2014 and 2013, follows:

	Total		Quoted prices in active markets for identical assets (Level 1)		Other observable inputs (Level 2)		Unobservable inputs (Level 3)
2014
Common collective trusts
Non-United States equity and global equities	$	1,458	$	—	$	1,458	$	—
United States equity	1,005		—		1,005		—
Fixed income	646		—		646		—
Exchange traded funds	138		—		138		—
Fixed income securities	398		—		398		—
United States treasuries	106		106		—		—
Bank loans	128		—		128		—
Real estate securities	263		257		—		6
Equity securities	92		92		—		—
Cash equivalents	218		8		210		—
Hedge funds	54		—		—		54
Exchange traded funds	50		50		—		—
Other	65		—		5		60
Total pension plan assets	$	4,621	$	513	$	3,988	$	120

2013
Common collective trusts
Non-United States equity and global equities	$	1,453	$	—	$	1,453	$	—
United States equity	1,153		—		1,153		—
Fixed income	672		—		672		—
Exchange traded funds	64		—		64		—
Fixed income securities	274		—		274		—
United States treasuries	63		63		—		—
Real estate securities	220		214		—		6
Equity securities	141		141		—		—
Cash equivalents	187		6		181		—
Exchange traded funds	47		47		—		—
Other	98		—		4		94
Total pension plan assets	$	4,372	$	471	$	3,801	$	100

Other Postretirement Benefits Plans

A summary of the fair value of other postretirement benefits plan assets at December 31, 2014 and 2013, follows:

	Total		Quoted prices in active markets for identical assets (Level 1)		Other observable inputs (Level 2)		Unobservable inputs (Level 3)
2014
Common collective trusts
Global equities	$	54	$	—	$	54	$	—
Fixed income securities	24		—		24		—
United States treasuries	37		37		—		—
Cash equivalents	1		1		—		—
Total other postretirement benefits plan assets	$	116	$	38	$	78	$	—

2013
Common collective trusts
Global equities	$	70	$	—	$	70	$	—
Fixed income securities	29		—		29		—
United States treasuries	38		38		—		—
Cash equivalents	1		1		—		—
Total other postretirement benefits plan assets	$	138	$	39	$	99	$	—

Valuation Methodologies

Following is a description of the valuation methodologies used for pension and other postretirement benefits plan assets measured at fair value. There have been no changes in the methodologies used at December 31, 2014 and 2013.

Common collective trusts - Valued at the net unit value of units held by the trust at year end. The unit value is determined by the total value of fund assets divided by the total number of units of the fund owned. The equity investments in collective trusts are predominantly in index funds for which the underlying securities are actively traded in public markets based upon readily measurable prices.

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

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

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

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

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

Hedge funds - Consists of direct investments in hedge funds through limited partnership interests. Values are based on the estimated fair value of the ownership interest in the investment as determined by the General Partner.

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

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

For additional information regarding fair value measurements, see Note 11.

Defined Contribution Plans

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

2014	$	141
2013	121
2012	74

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Income Taxes

12 Months Ended

Dec. 31, 2014

Income Tax Disclosure [Abstract]

INCOME TAXES

INCOME TAXES

Eaton Corporation plc is domiciled in Ireland. Income (loss) before income taxes and income tax (benefit) expense are summarized below based on the geographic location of the operation to which such earnings and income taxes are attributable. Certain Eaton operations which are located outside the United States are subject to income tax in both the United States as well as the country in which the operations are located. As a result, income before tax by location and the components of income tax expense by taxing jurisdiction are not directly related. For purposes of this note, Puerto Rico is classified in Foreign - other since Puerto Rico is not part of the United States corporate tax system.

	Income (loss) before income taxes
	2014			2013		2012
Ireland	$	(332	)	$	184	$	—
Foreign	2,093			1,700		1,251
Total income before income taxes	$	1,761		$	1,884	$	1,251

	Income tax (benefit) expense
	2014			2013			2012
Current
Ireland	$	(13	)	$	17		$	—
United States
Federal	87			89			1
State and local	41			7			5
Foreign - other	239			244			130
Total current income tax expense	354			357			136
Deferred
Ireland	2			—			—
United States
Federal	(224		)	(295		)	39
State and local	(49		)	(23		)	2
Foreign - other	(125		)	(28		)	(146		)
Total deferred income tax benefit	(396		)	(346		)	(105		)
Total income tax (benefit) expense	$	(42	)	$	11		$	31

Reconciliations of income taxes from the Ireland national statutory rate of 25% in 2014 and 2013, and the United States federal statutory rate of 35% in 2012, to the consolidated effective income tax rate follow:

	2014		2013		2012
Income taxes at the applicable statutory rate	25.0	%	25.0	%	35.0	%
Ireland operations
Ireland tax on trading income	(0.1	)%	(1.4	)%	—	%
Nondeductible interest expense	4.8	%	—	%	—	%
United States operations
United States (loss) income	(2.8	)%	(2.8	)%	—	%
Nondeductible goodwill - Aerospace divestitures	1.4	%	—	%	—	%
Credit for research activities	(1.0	)%	(2.0	)%	—	%
Other - net	1.5	%	1.3	%	1.8	%
Other foreign operations
United States foreign tax credit	(1.1	)%	(1.8	)%	(12.4	)%
Other foreign operations (earnings taxed at other than    the applicable statutory tax rate)	(24.8	)%	(17.6	)%	(14.9	)%
Other foreign operations - other items	(1.0	)%	0.2	%	—	%
Worldwide operations
Adjustments to tax liabilities	(1.7	)%	(1.1	)%	(5.7	)%
Adjustments to valuation allowances	(2.6	)%	0.8	%	(1.3	)%
Effective income tax (benefit) expense rate	(2.4	)%	0.6	%	2.5	%

During 2014, an income tax benefit of $42 was recognized (an effective tax benefit rate of 2.4%) compared to income tax expense of $11 for 2013 (an effective tax expense rate of 0.6%) and $31 for 2012 (an effective tax expense rate of 2.5%). The lower tax rate in 2014 was primarily attributable to the net tax benefit of 7.6% for the Meritor and Triumph litigation settlements and related legal costs and the gain on the sale of the Aerospace businesses, all of which occurred in the second quarter of 2014. Excluding the previously mentioned litigation settlements and gain on the sale of businesses, the 2014 income tax rate increased from 2013 due to greater levels of income in higher tax jurisdictions and net increases in worldwide tax liabilities, partially offset by additional foreign tax credit recognition in the United States and recognition of deferred tax assets in foreign jurisdictions. The lower effective tax rate for 2013, compared to 2012, was primarily attributable to the effects associated with the acquisition of Cooper, along with greater levels of income in lower tax jurisdictions, additional foreign tax credit utilization, and the benefit of two years of the U.S. research and experimentation tax credit due to the extension of the credit in the American Taxpayer Relief Act of 2012 (the Act) as signed into law in January 2013. The Act extended certain tax benefits retroactively to January 1, 2012.

See Note 7 and Note 2 and for additional information about litigation settlements and sales of businesses, respectively.

No provision has been made for income taxes on undistributed earnings of foreign subsidiaries of approximately $12.5 billion at December 31, 2014, since it is the Company's intention to indefinitely reinvest undistributed earnings of its foreign subsidiaries. It is not practicable to estimate the additional income taxes and applicable withholding taxes that would be payable on the remittance of such undistributed earnings.

The Company expects to deploy capital to those markets which offer particularly attractive growth opportunities. Given expected population growth and economic growth rates, most of the particularly attractive markets are outside of the United States. The cash that is permanently reinvested is typically used to expand these operations either organically or through acquisitions. Beginning in 2013, the Company's public dividends are funded by the Ireland parent primarily from Non-U.S. operations. The Company's United States operations are expected to generate cash flow sufficient to satisfy United States operating requirements and service its debt.

Worldwide income tax payments follow:

2014	$	258
2013	272
2012	254

Deferred Income Tax Assets and Liabilities

Components of current and long-term deferred income taxes follow:

	2014						2013
	Current assets and liabilities			Long-term assets and liabilities			Current assets and liabilities			Long-term assets and liabilities
Accruals and other adjustments
Employee benefits	$	148		$	773		$	116		$	657
Depreciation and amortization	—			(2,010		)	(2		)	(2,294		)
Other accruals and adjustments	476			282			497			368
United States federal income tax loss carryforwards	—			58			—			—
United States federal income tax credit carryforwards	—			150			—			161
United States state and local tax loss carryforwards and    tax credit carryforwards	—			76			—			73
Other foreign tax loss carryforwards	—			2,112			—			1,708
Other foreign income tax credit carryforwards	—			49			—			63
Valuation allowance for income tax loss and income tax    credit carryforwards	(24		)	(2,134		)	—			(1,738		)
Other valuation allowances	(7		)	(29		)	(34		)	(71		)
Total deferred income taxes	$	593		$	(673	)	$	577		$	(1,073	)

In July 2013, the FASB issued Accounting Standards Update No. 2013-11, Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Loss, or a Tax Credit Carryforward Exists (ASU 2013-11). ASU 2013-11 requires the netting of unrecognized tax benefits against a deferred tax asset for a loss or other carryforward that would apply in settlement of the uncertain tax positions except where the deferred tax asset or other carryforward are not available for use. The adoption of this standard resulted in a reduction of the Company’s consolidated long term deferred tax assets by $146 in 2014.

At the end of 2014, United States federal income tax loss carryforwards and income tax credit carryforwards are available to reduce future United States federal income tax liabilities. These carryforwards and their respective expiration dates are summarized below:

	2015 through 2019		2020 through 2024		2025 through 2029		2030 through 2034		2035 through 2039		Not subject to expiration		Valuation allowance
United States federal income tax loss    carryforwards	$	—	$	—	$	31	$	4	$	352	$	—	$	—
United States federal deferred income tax    assets for income tax loss carryforwards	—		—		11		1		101		—		(12		)
United States federal deferred income tax    assets for income tax loss carryforwards    after ASU 2013-11	—		—		11		1		46		—		(12		)
United States federal income tax credit    carryforwards	—		64		38		86		21		32		(69		)
United States federal income tax credit    carryforwards after ASU 2013-11	—		64		37		28		21		—		(69		)

United States state and local tax loss carryforwards and tax credit carryforwards with a future tax benefit are also available at the end of 2014. The deferred tax assets for these carryforwards and their respective expiration dates are summarized below:

	2015 through 2019		2020 through 2024		2025 through 2029		2030 through 2034		2035 through 2039		Not subject to expiration		Valuation allowance
United States state and local deferred    income tax assets for income tax loss    carryforwards - net of federal tax effect	$	6	$	18	$	12	$	8	$	—	$	—	$	(18	)
United States state and local income tax    credit carryforwards - net of federal    tax effect	10		9		6		2		5		—		(18		)

At December 31, 2014, certain non-United States subsidiaries had tax loss carryforwards and income tax credit carryforwards that are available to offset future taxable income. These carryforwards and their respective expiration dates are summarized below:

	2015 through 2019		2020 through 2024		2025 through 2029		2030 through 2034		Not subject to expiration		Valuation allowance
Non-United States income tax loss carryforwards	$	135	$	165	$	38	$	18	$	9,290	$	—
Non-United States deferred income tax assets for    income tax loss carryforwards	35		41		9		5		2,022		(2,033		)
Non-United States income tax credit carryforwards	3		14		24		—		7		(8		)

Recoverability of Deferred Income Tax Assets

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

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

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

Unrecognized Income Tax Benefits

A summary of gross unrecognized income tax benefits follows:

	2014			2013			2012
Balance at January 1	$	479		$	444		$	236
Increases and decreases as a result of positions taken during prior years
Transfers from valuation allowances	(3		)	13			—
Other increases	37			7			1
Other decreases, including currency translation	(3		)	(7		)	—
Balances related to acquired businesses	(3		)	2			177
Increases as a result of positions taken during the current year	65			35			36
Decreases relating to settlements with tax authorities	(51		)	(6		)	—
Decreases as a result of a lapse of the applicable statute of limitations	(28		)	(9		)	(6		)
Balance at December 31	$	493		$	479		$	444

Eaton's long-term policy has been to enter into tax planning strategies only if it is more likely than not that the benefit would be sustained upon audit. For example, the Company does not enter into any of the United States Internal Revenue Service (IRS) Listed Transactions as set forth in Treasury Regulation 1.6011-4.

If all unrecognized tax benefits were recognized, the net impact on the provision for income tax expense would be $371.

As of December 31, 2014 and 2013, Eaton had accrued approximately $120 and $114, respectively, for the payment of worldwide interest and penalties, which are not included in the table of unrecognized income tax benefits above. Eaton recognizes interest and penalties related to unrecognized income tax benefits in the provision for income tax expense. The Company has accrued penalties in jurisdictions where they are automatically applied to any deficiency, regardless of the merit of the position.

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

Eaton or its subsidiaries file income tax returns in Ireland and many countries around the world. The IRS has completed its examination of Eaton Corporation and Includible Subsidiaries United States income tax returns for 2007 through 2010 and has issued a Statutory Notice of Deficiency (Notice) as discussed below. The statute of limitations on these tax years remains open to the extent of the tax assessment until the matter is resolved. Tax years 2011 through 2014 are still subject to examination by the IRS.

With respect to the pre-acquisition years of BZ Holdings Inc. and Subsidiaries (the former U.S. holding company for Cooper Industries), the IRS examination of the United States income tax returns for 2010, 2011, and the period ended December 21, 2012 was completed and settled without significant effect on the consolidated financial statements. The statute of limitations remains open for tax years 2010 and 2011 until September 15, 2015. The statute of limitations on the final return period ended December 21, 2012 remains open until September 15, 2016. On December 22, 2012, BZ Holdings Inc. and Subsidiaries joined the Eaton Corporation and Includible Subsidiaries consolidated United States income tax return for 2012.

Eaton is also under examination for the income tax filings in various states of the United States and in many other foreign jurisdictions. With only a few exceptions, Eaton Corporation and Includible Subsidiaries are no longer subject to income tax examinations from states and localities within the United States for years before 2010. Income tax returns of states and localities within the United States will be reopened to the extent of United States federal income tax adjustments, if any, going back to 2005 when those audit years are finalized. Some states and localities may not limit their assessment to the United States federal adjustments, and may require the opening of the entire tax year. In addition, with only a few exceptions, Cooper Industries and Includible Subsidiaries are no longer subject to United States state and local income tax examinations for years before 2010. With only a few exceptions, the other foreign subsidiaries of both Eaton and Cooper are no longer subject to examinations for years before 2009.

At the end of the fourth quarter of 2011, the IRS issued a Notice for Eaton Corporation and Includible Subsidiaries 2005 and 2006 tax years (the 2011 Notice). The Notice proposed assessments of $75 in additional taxes plus $52 in penalties related primarily to transfer pricing adjustments for products manufactured in the Company's facilities in Puerto Rico and the Dominican Republic and sold to affiliated companies located in the U.S., net of agreed credits and deductions. The Company has set its transfer prices for products sold between these affiliates at the same prices that the Company sells such products to third parties as required by two successive Advance Pricing Agreements (APAs) the Company entered into with the IRS. For the years 2001 through 2004, the IRS had previously accepted the transfer pricing methodology related to these APAs after a comprehensive review conducted in two separate audit cycles. On December 16, 2011, immediately prior to the 2011 Notice being issued, the IRS sent a letter stating that it was retrospectively canceling the APAs, even though their respective APA terms had already expired.

The Company is contesting the proposed assessments. The Company believes that it was in full compliance with the terms of the two APAs, and that the IRS's cancellation of these two APAs is without merit. On February 29, 2012, the Company filed a Petition with the U.S. Tax Court in which it asserted that the transfer pricing established in the APAs meets the arms-length standard set by the U.S. income tax laws, and accordingly, that the APAs should be enforced in accordance with their terms. The case involves both whether the APAs should be enforced and, if not, the appropriate transfer pricing methodology. The U.S. Tax Court has established that the trial for this matter will begin in June 2015.

During the third quarter of 2014, the Company received a Notice from the IRS for the 2007 through 2010 tax years (the 2014 Notice) proposing assessments of $190 in additional taxes plus $72 in penalties, net of agreed credits and deductions. The proposed assessments pertain primarily to the same transfer pricing issues that are currently in litigation for the 2011 Notice, as noted above. During 2007 through 2010, the Company set its transfer prices for products sold between these affiliates consistent with the terms of a written APA between it and the IRS that covered the years at issue. To establish the relevant transfer prices, the APA relied on prices at which the Company sells the products to third parties. The 2014 Notice includes a separate proposed assessment involving the recognition of income for several of the Company’s controlled foreign corporations. The Company believes that these proposed assessments are without merit. On November 25, 2014, the Company filed a Petition with the U.S. Tax Court in which it challenged the IRS's adjustments. The Company expects the outcome of the 2014 Notice on the transfer pricing matter to be determined by the judicial decision related to the 2011 Notice. The Company has continued to apply the arms-length transfer pricing methodology for 2011 through 2014.

Also during the third quarter of 2014, the Company resolved an uncertain tax position with a European government. The resolution had minimal impact on the Company's Consolidated Statements of Income.

During 2010, the Company received a tax assessment of $64, plus interest and penalties, in Brazil for the tax years 2005 through 2008 that relates to the amortization of certain goodwill generated from the acquisition of third-party businesses and corporate reorganizations. The Company is contesting the assessment, which is under review at the second of three administrative appeals levels. During 2013, the Brazilian tax authorities began an audit of tax years 2009 through 2012. During the third quarter of 2014, the Company received a tax assessment of $50, plus interest and penalties, for the 2009 through 2012 tax years (primarily relating to the same issues concerning the 2005 through 2008 tax years), which the Company is also contesting and is under review in the administrative appeals process. Multiple outside advisors have stated that Brazilian tax authorities are raising the issue for most clients with similar facts and that the matter is expected to require at least 10 years to resolve. The Company continues to believe that final resolution of the assessments will not have a material impact on its consolidated financial statements.

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Retirement Benefits Plans - Pension Plans Assumptions (Details 7)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
United States pension plans [Member]
Assumptions used to determine benefit obligation at year-end
Discount rate	3.97%	4.67%	3.97%
Rate of compensation increase	3.16%	3.16%	3.16%
Assumptions used to determine expense
Discount rate	4.67%	3.97%	4.70%
Expected long-term return on plan assets	8.40%	8.45%	8.50%
Rate of compensation increase	3.16%	3.16%	3.15%
Non-United States pension plans [Member]
Assumptions used to determine benefit obligation at year-end
Discount rate	3.33%	4.20%	4.17%
Rate of compensation increase	3.13%	3.12%	3.09%
Assumptions used to determine expense
Discount rate	4.20%	4.17%	5.12%
Expected long-term return on plan assets	7.00%	6.92%	7.10%
Rate of compensation increase	3.12%	3.09%	3.62%

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Eaton Shareholders' Equity Eaton Shareholders' Equity - Net Income per Ordinary Share (Details) (USD $) In Millions, except Per Share data, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Equity [Abstract]
Net income attributable to Eaton ordinary shareholders	$ 1,793	$ 1,861	$ 1,217
Weighted-average number of ordinary shares outstanding - diluted	476.8	476.7	350.9
Less dilutive effect of equity-based compensation	2.7	3.2	3.1
Weighted-average number of ordinary shares outstanding - basic	474.1	473.5	347.8
Net income per ordinary share - diluted	$ 3.76	$ 3.90	$ 3.46
Net income per ordinary share - basic	$ 3.78	$ 3.93	$ 3.54

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Retirement Benefits Plans Retirement Benefits Plans - Employer Contributions to Retirement Benefits Plans (Details 9) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
United States pension plans [Member]
Defined Benefit Plans and Other Postretirement Benefit Plans
Defined Benefit Plans, Estimated Future Employer Contributions in Next Fiscal Year	$ 217
Employer contributions to pension plans	248	196	311
Non-United States pension plans [Member]
Defined Benefit Plans and Other Postretirement Benefit Plans
Defined Benefit Plans, Estimated Future Employer Contributions in Next Fiscal Year	109
Employer contributions to pension plans	114	145	102
Total contributions [Member]
Defined Benefit Plans and Other Postretirement Benefit Plans
Defined Benefit Plans, Estimated Future Employer Contributions in Next Fiscal Year	326
Employer contributions to pension plans	$ 362	$ 341	$ 413

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Business Segment and Geographic Region Information Business Segment and Geographic Region Information (Details 2) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Revenues from External Customers and Long-Lived Assets [Line Items]
Net sales	$ 22,552	$ 22,046	$ 16,311
Net property, plant and equipment	3,750	3,833	3,786
United States
Revenues from External Customers and Long-Lived Assets [Line Items]
Net sales	11,701	11,092	7,789
Net property, plant and equipment	1,988	1,966	1,914
Canada
Revenues from External Customers and Long-Lived Assets [Line Items]
Net sales	1,113	1,154	918
Net property, plant and equipment	25	28	33
Latin America [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Net sales	1,988	2,113	1,588
Net property, plant and equipment	306	331	346
Europe [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Net sales	5,074	5,112	3,997
Net property, plant and equipment	799	856	845
Asia Pacific [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Net sales	2,676	2,575	2,019
Net property, plant and equipment	$ 632	$ 652	$ 648

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Retirement Benefits Plans Retirement Benefits Plans - Estimated Future Pretax Amounts Recognized From AOCI to Net Periodic Benefit Cost (Details 6) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2014
United States pension liabilities [Member]
Defined Benefit Plans and Other Postretirement Benefit Plans
Actuarial loss	$ 168
Prior service cost (credit)	1
Total	169
Non-United States pension liabilities [Member]
Defined Benefit Plans and Other Postretirement Benefit Plans
Actuarial loss	39
Prior service cost (credit)	1
Total	40
Other postretirement liabilities [Member]
Defined Benefit Plans and Other Postretirement Benefit Plans
Actuarial loss	15
Prior service cost (credit)	(14)
Total	$ 1

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Fair Value Measurements (Details) (USD $) In Millions, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
Summary of financial instruments recognized at fair value and fair value measurement used
Cash	$ 781	$ 915
Short-term investments	245	794
Net derivative contracts	70	(35)
Long-term debt converted to floating interest rates by interest rate swaps - net	(74)	39
Quoted prices in active markets for identical assets (Level 1) [Member]
Summary of financial instruments recognized at fair value and fair value measurement used
Cash	781	915
Short-term investments	245	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]
Summary of financial instruments recognized at fair value and fair value measurement used
Cash	0	0
Short-term investments	0	0
Net derivative contracts	70	(35)
Long-term debt converted to floating interest rates by interest rate swaps - net	(74)	39
Unobservable inputs (Level 3) [Member]
Summary of financial instruments recognized at fair value and fair value measurement used
Cash	0	0
Short-term investments	0	0
Net derivative contracts	0	0
Long-term debt converted to floating interest rates by interest rate swaps - net	$ 0	$ 0

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Fair Value Measurements (Tables)

12 Months Ended

Dec. 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)
2014
Cash	$	781		$	781	$	—		$	—
Short-term investments	245			245		—			—
Net derivative contracts	70			—		70			—
Long-term debt converted to floating interest rates by    interest rate swaps - net	(74		)	—		(74		)	—
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			—

Summary of carrying value of short-term investments

A summary of the carrying value of short-term investments follows:

	2014		2013
Time deposits, certificates of deposit and demand deposits with banks	$	113	$	279
Money market investments	131		512
Other	1		3
Total short-term investments	$	245	$	794

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Goodwill and Other Intangible Assets Other Intangibles Assets Related to the Acquisition of Cooper (Details) (USD $) In Millions, unless otherwise specified	12 Months Ended	0 Months Ended
	Dec. 31, 2014	Nov. 30, 2012
Customer relationships [Member]
Intangible Assets [Line Items]
Finite-Lived Intangible Asset, Useful Life	17 years
Cooper Industries plc [Member]
Intangible Assets [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill		5,369
Cooper Industries plc [Member] | Trade names [Member] | Minimum [Member]
Intangible Assets [Line Items]
Finite-Lived Intangible Asset, Useful Life		3 years
Cooper Industries plc [Member] | Trade names [Member] | Maximum [Member]
Intangible Assets [Line Items]
Finite-Lived Intangible Asset, Useful Life		20 years
Cooper Industries plc [Member] | Trade names [Member] | Relief-from-royalty [Member]
Intangible Assets [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles		638
Cooper Industries plc [Member] | Customer relationships [Member] | Minimum [Member]
Intangible Assets [Line Items]
Finite-Lived Intangible Asset, Useful Life		13 years
Cooper Industries plc [Member] | Customer relationships [Member] | Maximum [Member]
Intangible Assets [Line Items]
Finite-Lived Intangible Asset, Useful Life		18 years
Cooper Industries plc [Member] | Customer relationships [Member] | Multi-period excess earnings [Member]
Intangible Assets [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles		2,510
Cooper Industries plc [Member] | Technology [Member] | Minimum [Member]
Intangible Assets [Line Items]
Finite-Lived Intangible Asset, Useful Life		4 years
Cooper Industries plc [Member] | Technology [Member] | Maximum [Member]
Intangible Assets [Line Items]
Finite-Lived Intangible Asset, Useful Life		20 years
Cooper Industries plc [Member] | Technology [Member] | Relief-from-royalty; Multi-period excess earnings [Member]
Intangible Assets [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles		767
Cooper Industries plc [Member] | Contract-based [Member]
Intangible Assets [Line Items]
Finite-Lived Intangible Asset, Useful Life		9 years 6 months
Cooper Industries plc [Member] | Contract-based [Member] | Relief-from-royalty [Member]
Intangible Assets [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles		44
Cooper Industries plc [Member] | Trade names [Member] | Relief-from-royalty [Member]
Intangible Assets [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Indefinite-Lived Intangible Assets		1,410

XML

Accounts Receivable and Inventory

12 Months Ended

Dec. 31, 2014

Accounts Receivable and Inventory [Abstract]

Accounts Receivable and Inventory

ACCOUNTS RECEIVABLE AND INVENTORY

Accounts Receivable

Eaton performs ongoing credit evaluation of its customers and maintains sufficient allowances for potential credit losses. The Company evaluates the collectability of its accounts receivable based on the length of time the receivable is past due and any anticipated future write-off based on historic experience. Accounts receivable balances are written off against an allowance for doubtful accounts after a final determination of uncollectability has been made. Accounts receivable are net of an allowance for doubtful accounts of $60 and $79 at December 31, 2014 and 2013, respectively.

Inventory

Inventory is carried at lower of cost or market. Inventory in the United States is generally accounted for using the last-in, first-out (LIFO) method. Remaining United States and non-United States inventory is accounted for using the first-in, first-out (FIFO) method. Cost components include raw materials, purchased components, direct labor, indirect labor, utilities, depreciation, inbound freight charges, purchasing and receiving costs, inspection costs, warehousing costs, and costs of the distribution network.

The components of inventory follow:

	2014			2013
Raw materials	$	924		$	955
Work-in-process	422			428
Finished goods	1,201			1,115
Inventory at FIFO	2,547			2,498
Excess of FIFO over LIFO cost	(119		)	(116		)
Total inventory	$	2,428		$	2,382

Inventory at FIFO accounted for using the LIFO method was 41% and 45% at the end of 2014 and 2013, respectively.

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Acquisition Integration and Restructuring Charges (Tables)

12 Months Ended

Dec. 31, 2014

Acquisition Integration Charges [Line Items]

Acquisition Integration Charges and Transaction Costs

A summary of these charges follows:

	2014		2013		2012
Acquisition integration charges
Electrical Products	$	66	$	44	$	4
Electrical Systems and Services	51		37		13
Hydraulics	12		36		16
Total business segments	129		117		33
Corporate	25		37		11
Total acquisition integration charges	154		154		44
Transaction costs
Corporate	—		8		106
Financing fees	—		1		72
Total transaction costs	—		9		178
Total acquisition integration charges and transaction costs    before income taxes	$	154	$	163	$	222
Total after income taxes	$	102	$	110	$	167
Per ordinary share - diluted	$	0.21	$	0.23	$	0.48

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Derivative Financial Instruments and Hedging Activities Fixed-to-Floating Interest Rate Swaps (Details) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2014
Notes due 2017 [Member]
Derivative [Line Items]
Notional amount	$ 150
Fixed interest rate received	5.30%
Floating interest rate paid	4.42%
Basis for contracted floating interest rate paid	1 month LIBOR + 4.26%
Senior notes due 2017 [Member]
Derivative [Line Items]
Notional amount	650
Fixed interest rate received	1.50%
Floating interest rate paid	0.59%
Basis for contracted floating interest rate paid	1 month LIBOR + 0.43%
Notes due 2018 [Member]
Derivative [Line Items]
Notional amount	415
Fixed interest rate received	5.60%
Floating interest rate paid	3.51%
Basis for contracted floating interest rate paid	6 month LIBOR + 3.18%
Notes due 2019 [Member]
Derivative [Line Items]
Notional amount	300
Fixed interest rate received	6.95%
Floating interest rate paid	5.30%
Basis for contracted floating interest rate paid	3 month LIBOR + 5.07%
Debentures due 2019 [Member]
Derivative [Line Items]
Notional amount	25
Fixed interest rate received	8.875%
Floating interest rate paid	4.18%
Basis for contracted floating interest rate paid	6 month LIBOR + 3.84%
Debentures due 2020 [Member]
Derivative [Line Items]
Notional amount	150
Fixed interest rate received	3.875%
Floating interest rate paid	2.28%
Basis for contracted floating interest rate paid	1 month LIBOR + 2.12%
Notes due 2021 [Member]
Derivative [Line Items]
Notional amount	200
Fixed interest rate received	3.47%
Floating interest rate paid	1.85%
Basis for contracted floating interest rate paid	1 month LIBOR + 1.69%
Senior notes due 2022 [Member]
Derivative [Line Items]
Notional amount	1,250
Fixed interest rate received	2.75%
Floating interest rate paid	0.67%
Basis for contracted floating interest rate paid	1 month LIBOR + 0.52%
Notes due 2023 [Member]
Derivative [Line Items]
Notional amount	200
Fixed interest rate received	3.68%
Floating interest rate paid	1.23%
Basis for contracted floating interest rate paid	1 month LIBOR + 1.07%
Debentures due 2024 [Member]
Derivative [Line Items]
Notional amount	25
Fixed interest rate received	7.625%
Floating interest rate paid	2.81%
Basis for contracted floating interest rate paid	6 month LIBOR + 2.48%
Debentures due 2029 [Member]
Derivative [Line Items]
Notional amount	50
Fixed interest rate received	7.65%
Floating interest rate paid	2.89%
Basis for contracted floating interest rate paid	6 month LIBOR + 2.57%
Debentures due 2034 [Member]
Derivative [Line Items]
Notional amount	$ 25
Fixed interest rate received	5.45%
Floating interest rate paid	0.60%
Basis for contracted floating interest rate paid	6 month LIBOR + 0.28%

XML

Goodwill and Other Intangible Assets Schedule of Other Intangible Assets by Major Class (Details) (USD $) In Millions, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
Summary of other intangible assets
Intangible assets not subject to amortization - trademarks	$ 1,844	$ 1,868
Intangible assets subject to amortization
Historical cost	6,251	6,602
Accumulated amortization	1,539	1,284
Customer relationships [Member]
Intangible assets subject to amortization
Historical cost	3,674	3,859
Accumulated amortization	834	669
Patents and technology [Member]
Intangible assets subject to amortization
Historical cost	1,494	1,588
Accumulated amortization	440	389
Trademarks [Member]
Intangible assets subject to amortization
Historical cost	980	1,052
Accumulated amortization	250	215
Other [Member]
Intangible assets subject to amortization
Historical cost	103	103
Accumulated amortization	$ 15	$ 11

XML

Condensed Consolidating Financial Statements Condensed Consolidating Statements of Cash Flows (Details) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Condensed Consolidating Statements of Cash Flows [Line Items]
Net cash (used in) provided by operating activities	$ 1,878	$ 2,285	$ 1,664
Capital expenditures for property, plant and equipment	(632)	(614)	(593)
Cash received from (paid for) acquisitions of businesses, net of cash acquired	2	(9)	(6,936)
Sales (purchases) of short-term investments - net	522	(288)	603
Investment in affiliates	0
Loans to affiliates	0	0	0
Repayments of loans from affiliates	0	0	0
Proceeds from sale of businesses	282	777	3
Other - net	(31)	(68)	(49)
Net cash provided by (used in) investing activities	143	(202)	(6,972)
Proceeds from borrowings	0	9	7,156
Payments on borrowings	(582)	(1,096)	(1,324)
Payments of financing costs	0	0	(117)
Proceeds from borrowings from affiliates	0	0	0
Payments on borrowings from affiliates	0	0	0
Capital contribution from affiliates	0
Other intercompany financing activities	0	0	0
Cash dividends paid	(929)	(796)	(512)
Cash dividends paid to affiliates	0	0	0
Exercise of employee stock options	54	121	95
(Repurchase) issuance of shares	(650)	0	159
Excess tax benefit from equity-based compensation	20	32	21
Other - net	(43)	(6)	2
Net cash provided by (used in) financing activities	(2,130)	(1,736)	5,480
Effect of currency on cash	(25)	(9)	20
Total (decrease) increase in cash	(134)	338	192
Cash at the beginning of the period	915	577	385
Cash at the end of the period	781	915	577
Eaton Corporation plc [Member]
Condensed Consolidating Statements of Cash Flows [Line Items]
Net cash (used in) provided by operating activities	(93)	(17)	(60)
Capital expenditures for property, plant and equipment	0	0	0
Cash received from (paid for) acquisitions of businesses, net of cash acquired	0	0	(6,542)
Sales (purchases) of short-term investments - net	0	0	0
Investment in affiliates	(753)
Loans to affiliates	0	0	0
Repayments of loans from affiliates	0	0	0
Proceeds from sale of businesses	0	0	0
Other - net	0	0	0
Net cash provided by (used in) investing activities	(753)	0	(6,542)
Proceeds from borrowings		0	0
Payments on borrowings	0	0	0
Payments of financing costs			0
Proceeds from borrowings from affiliates	2,628	0	5
Payments on borrowings from affiliates	(476)	0	(5)
Capital contribution from affiliates	0
Other intercompany financing activities	217	688	0
Cash dividends paid	(929)	(796)	0
Cash dividends paid to affiliates	0	0	0
Exercise of employee stock options	54	121	25
(Repurchase) issuance of shares	(650)		6,584
Excess tax benefit from equity-based compensation	0	0	0
Other - net	0	0	0
Net cash provided by (used in) financing activities	844	13	6,609
Effect of currency on cash	0	0	0
Total (decrease) increase in cash	(2)	(4)	7
Cash at the beginning of the period	3	7	0
Cash at the end of the period	1	3	7
Eaton Corporation [Member]
Condensed Consolidating Statements of Cash Flows [Line Items]
Net cash (used in) provided by operating activities	(411)	860	1,037
Capital expenditures for property, plant and equipment	(127)	(171)	(291)
Cash received from (paid for) acquisitions of businesses, net of cash acquired	0	0	0
Sales (purchases) of short-term investments - net	0	25	175
Investment in affiliates	0
Loans to affiliates	(354)	(535)	(6,693)
Repayments of loans from affiliates	978	36	268
Proceeds from sale of businesses	93	0	2
Other - net	(47)	(41)	(28)
Net cash provided by (used in) investing activities	543	(686)	(6,567)
Proceeds from borrowings		0	7,156
Payments on borrowings	(553)	(1,048)	(1,306)
Payments of financing costs			(117)
Proceeds from borrowings from affiliates	7,599	2,395	8,054
Payments on borrowings from affiliates	(6,907)	(2,921)	(8,175)
Capital contribution from affiliates	0
Other intercompany financing activities	(169)	1,365	273
Cash dividends paid	0	0	(512)
Cash dividends paid to affiliates	0	0	0
Exercise of employee stock options	0	0	70
(Repurchase) issuance of shares	0		0
Excess tax benefit from equity-based compensation	20	32	21
Other - net	0	0	0
Net cash provided by (used in) financing activities	(10)	(177)	5,464
Effect of currency on cash	0	0	0
Total (decrease) increase in cash	122	(3)	(66)
Cash at the beginning of the period	51	54	120
Cash at the end of the period	173	51	54
Guarantors [Member]
Condensed Consolidating Statements of Cash Flows [Line Items]
Net cash (used in) provided by operating activities	(218)	428	217
Capital expenditures for property, plant and equipment	(168)	(119)	(73)
Cash received from (paid for) acquisitions of businesses, net of cash acquired	0	0	11
Sales (purchases) of short-term investments - net	133	(95)	210
Investment in affiliates	0
Loans to affiliates	(162)	(545)	0
Repayments of loans from affiliates	212	626	0
Proceeds from sale of businesses	175	0	0
Other - net	44	(12)	2
Net cash provided by (used in) investing activities	234	(145)	150
Proceeds from borrowings		0	0
Payments on borrowings	(1)	(43)	(16)
Payments of financing costs			0
Proceeds from borrowings from affiliates	808	4,260	6,425
Payments on borrowings from affiliates	(1,875)	(2,874)	0
Capital contribution from affiliates	753
Other intercompany financing activities	302	(1,630)	(340)
Cash dividends paid	0	0	0
Cash dividends paid to affiliates	0	0	0
Exercise of employee stock options	0	0	0
(Repurchase) issuance of shares	0		(6,425)
Excess tax benefit from equity-based compensation	0	0	0
Other - net	0	0	0
Net cash provided by (used in) financing activities	(13)	(287)	(356)
Effect of currency on cash	0	0	0
Total (decrease) increase in cash	3	(4)	11
Cash at the beginning of the period	10	14	3
Cash at the end of the period	13	10	14
Other Subsidiaries [Member]
Condensed Consolidating Statements of Cash Flows [Line Items]
Net cash (used in) provided by operating activities	2,568	1,067	487
Capital expenditures for property, plant and equipment	(337)	(324)	(229)
Cash received from (paid for) acquisitions of businesses, net of cash acquired	2	(9)	(405)
Sales (purchases) of short-term investments - net	389	(218)	218
Investment in affiliates	(753)
Loans to affiliates	(10,546)	(6,215)	(8,054)
Repayments of loans from affiliates	8,451	5,795	8,175
Proceeds from sale of businesses	14	777	1
Other - net	(28)	(15)	(23)
Net cash provided by (used in) investing activities	(2,808)	(209)	(317)
Proceeds from borrowings		9	0
Payments on borrowings	(28)	(5)	(2)
Payments of financing costs			0
Proceeds from borrowings from affiliates	27	640	263
Payments on borrowings from affiliates	(383)	(662)	(263)
Capital contribution from affiliates	753
Other intercompany financing activities	(350)	(423)	67
Cash dividends paid	0	0	0
Cash dividends paid to affiliates	32	(53)	(17)
Exercise of employee stock options	0	0	0
(Repurchase) issuance of shares	0		0
Excess tax benefit from equity-based compensation	0	0	0
Other - net	(43)	(6)	2
Net cash provided by (used in) financing activities	8	(500)	50
Effect of currency on cash	(25)	(9)	20
Total (decrease) increase in cash	(257)	349	240
Cash at the beginning of the period	851	502	262
Cash at the end of the period	594	851	502
Consolidating Adjustments [Member]
Condensed Consolidating Statements of Cash Flows [Line Items]
Net cash (used in) provided by operating activities	32	(53)	(17)
Capital expenditures for property, plant and equipment	0	0	0
Cash received from (paid for) acquisitions of businesses, net of cash acquired	0	0	0
Sales (purchases) of short-term investments - net	0	0	0
Investment in affiliates	1,506
Loans to affiliates	11,062	7,295	14,747
Repayments of loans from affiliates	(9,641)	(6,457)	(8,443)
Proceeds from sale of businesses	0	0	0
Other - net	0	0	0
Net cash provided by (used in) investing activities	2,927	838	6,304
Proceeds from borrowings		0	0
Payments on borrowings	0	0	0
Payments of financing costs			0
Proceeds from borrowings from affiliates	(11,062)	(7,295)	(14,747)
Payments on borrowings from affiliates	9,641	6,457	8,443
Capital contribution from affiliates	(1,506)
Other intercompany financing activities	0	0	0
Cash dividends paid	0	0	0
Cash dividends paid to affiliates	(32)	53	17
Exercise of employee stock options	0	0	0
(Repurchase) issuance of shares	0		0
Excess tax benefit from equity-based compensation	0	0	0
Other - net	0	0	0
Net cash provided by (used in) financing activities	(2,959)	(785)	(6,287)
Effect of currency on cash	0	0	0
Total (decrease) increase in cash	0	0	0
Cash at the beginning of the period	0	0	0
Cash at the end of the period	$ 0	$ 0	$ 0

XML

Summary of Significant Accounting Policies Equity-Based Compensation (Details)	12 Months Ended
	Dec. 31, 2014
Equity-based compensation
Equity-based compensation, vesting period	3 years
Minimum [Member] | Restricted Stock Units (RSUs) [Member]
Equity-based compensation
Equity-based compensation, vesting period	3 years
Minimum [Member] | Restricted Stock Awards (RSAs) [Member]
Equity-based compensation
Equity-based compensation, vesting period	3 years
Maximum [Member] | Restricted Stock Units (RSUs) [Member]
Equity-based compensation
Equity-based compensation, vesting period	4 years
Maximum [Member] | Restricted Stock Awards (RSAs) [Member]
Equity-based compensation
Equity-based compensation, vesting period	4 years

XML

Consolidated Statements of Cash Flows (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Operating activities
Net income	$ 1,803	$ 1,873	$ 1,220
Adjustments to reconcile to net cash provided by operating activities
Depreciation and amortization	983	997	598
Deferred income taxes	(382)	(311)	(155)
Pension and other postretirement benefits expense	293	384	335
Contributions to pension plans	(362)	(341)	(413)
Contributions to other postretirement benefits plans	(40)	(59)	(43)
Excess tax benefit from equity-based compensation	(20)	(32)	(21)
(Gain) loss on sale of businesses	(68)	(2)	1
Changes in working capital
Accounts receivable - net	(205)	(231)	108
Inventory	(152)	(92)	166
Accounts payable	49	86	(220)
Accrued compensation	(32)	0	(52)
Accrued income and other taxes	(73)	1	(86)
Other current assets	73	(42)	117
Other current liabilites	8	(46)	30
Other - net	3	100	79
Net cash provided by operating activities	1,878	2,285	1,664
Investing activities
Capital expenditures for property, plant and equipment	(632)	(614)	(593)
Cash received from (paid for) acquisitions of businesses, net of cash acquired	2	(9)	(6,936)
Sales (purchases) of short-term investments - net	522	(288)	603
Proceeds from sale of businesses	282	777	3
Other - net	(31)	(68)	(49)
Net cash provided by (used in) investing activities	143	(202)	(6,972)
Financing activities
Proceeds from borrowings	0	9	7,156
Payments on borrowings	(582)	(1,096)	(1,324)
Payments of financing costs	0	0	(117)
Cash dividends paid	(929)	(796)	(512)
Exercise of employee stock options	54	121	95
(Repurchase) issuance of shares	(650)	0	159
Excess tax benefit from equity-based compensation	20	32	21
Other - net	(43)	(6)	2
Net cash (used in) provided by financing activities	(2,130)	(1,736)	5,480
Effect of currency on cash	(25)	(9)	20
Total (decrease) increase in cash	(134)	338	192
Cash at the beginning of the period	915	577	385
Cash at the end of the period	$ 781	$ 915	$ 577

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Equity-Based Compensation Information Related to Restricted Stock Units and Awards (Details) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Information Related to RSUs and RSAs [Line Items]
Pretax expense for RSUs and RSAs	$ 81	$ 69	$ 46
After-tax expense for RSUs and RSAs	53	45	30
Fair value of vested RSUs and RSAs	$ 105	$ 82	$ 126

XML

Acquisitions and Sales of Businesses

12 Months Ended

Dec. 31, 2014

Business Combinations [Abstract]

Acquisitions and Sales of Businesses

ACQUISITIONS AND SALES OF BUSINESSES

In 2012, Eaton acquired businesses for combined purchase prices totaling $13,796. The Consolidated Statements of Income include the results of these businesses from the dates of the transactions or formation.

Cooper Industries plc

On November 30, 2012, Eaton Corporation acquired Cooper Industries plc (Cooper) for a purchase price of $13,192. At the completion of the transaction, the holder of each Cooper common share received from Eaton $39.15 in cash and 0.77479 of an Eaton ordinary share. As a result of the transaction, based on the number of outstanding shares of Eaton Corporation and Cooper as of November 30, 2012, former Eaton Corporation and Cooper shareholders held approximately 73% and 27%, respectively, of Eaton's ordinary shares after giving effect to the acquisition.

Cooper was 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. Cooper had annual sales of $5,409 for 2011. For segment reporting purposes, Cooper has been included in Electrical Products and Electrical Systems and Services business segments. See Note 14 for additional information about business segments.

Fair Value of Consideration Transferred

The total purchase price for the acquisition of Cooper was $13,192, comprised of Eaton share consideration valued at $6,649 and cash consideration for Cooper shares of $6,474 and to settle certain Cooper equity-based compensation plans of $69, as follows:

Cooper shares outstanding as of November 30, 2012	163.6
Cooper shares issued pursuant to conversion of stock options and share units outstanding under    Cooper equity-based compensation plans	1.8
Total Cooper shares and share equivalents prior to transaction	165.4
Exchange ratio per share	0.77479
Total Eaton shares issued	128.1
Weighted-average Eaton Corporation per share price on November 30, 2012	$	51.91
Total value of Eaton shares issued	$	6,649
Total cash consideration paid at $39.15 per Cooper share and share equivalent	6,474
Total cash consideration paid for equity-based compensation plans	69
Total consideration	$	13,192

Purchase Price Allocation

The acquisition of Cooper has been accounted for using the acquisition method of accounting which requires, among other things, the assets acquired and liabilities assumed be recognized at their respective fair values as of the acquisition date. For accounting purposes, Eaton has been treated as the acquirer in the transaction. The process for estimating the fair values of identifiable intangible assets and certain tangible assets and assumed liabilities requires the use of judgment in determining the appropriate assumptions and estimates.

The purchase price allocation below represents Cooper's opening balance sheet on November 30, 2012, which was initially reported in Eaton's Form 10-K for the year ended December 31, 2012, updated by Exhibit 99.1 of Eaton's current report on Form 8-K filed on September 6, 2013 and subsequently updated in Eaton's Form 10-K for the year ended December 31, 2013. During the measurement period, which ended November 30, 2013, opening balance sheet adjustments were made to finalize Eaton's preliminary fair value estimates related primarily to intangible assets, goodwill, certain property values, contingent liabilities and the related deferred tax impact. Eaton's consolidated balance sheet at December 31, 2012, as presented in the Company's Form 10-K for the year ended December 31, 2013, was adjusted to reflect the final purchase price allocation. The Company did not revise the Consolidated Statement of Income for the year ended December 31, 2013, as any adjustment was considered immaterial.

	November 30, 2012 (as previously reported)			Adjustments			November 30, 2012 (final adjusted)
Working capital accounts (1)	$	2,304		$	(18	)	$	2,286
Prepaid expenses and other current assets	204			69			273
Property, plant and equipment	885			(40		)	845
Investment in Apex Tool Group, LLC	807			(7		)	800
Intangible assets	5,250			119			5,369
Other assets	35			30			65
Debt	(1,221		)	—			(1,221		)
Accounts payable	(519		)	3			(516		)
Other current liabilities	(673		)	(206		)	(879		)
Other noncurrent liabilities	(2,185		)	(177		)	(2,362		)
Total identifiable net assets	4,887			(227		)	4,660
Goodwill	8,305			227			8,532
Total consideration	$	13,192		$	—		$	13,192
(1) Working capital accounts include Cash, Short-term investments, Accounts receivable and Inventory.

Goodwill has been allocated to the Electrical Products and Electrical Systems and Services segments. Goodwill is calculated as the excess of the consideration transferred over the net assets recognized and represents the expected revenue and cost synergies of the combined company and assembled workforce, which are further described above. Goodwill recognized as a result of the acquisition is not deductible for tax purposes. See Note 4 for additional information about goodwill and other intangible assets.

The estimated fair value of Accounts receivable is based on the historical gross contractual amount receivable as of the acquisition date and totals $955.

Contingent liabilities assumed as part of the transaction total $419 and are included in Other current liabilities and Other noncurrent liabilities. These contingent liabilities are related to environmental, legal (including product liability claims) and tax matters. Contingent liabilities are recorded at fair value in purchase accounting, aside from those pertaining to uncertainty in income taxes which are an exception to the fair value basis of accounting. Legal matters, and certain environmental matters that are legal in nature, are recorded at the respective probable and estimable amount.

Actual and Pro Forma Impact

Eaton's Consolidated Financial Statements for the year ended December 31, 2012 include Cooper's results of operations from the date of acquisition on November 30, 2012 through December 31, 2012. Net sales and operating profit attributable to Cooper during this period and included in Eaton's Consolidated Financial Statements for the year ended December 31, 2012 total $470 and $66, respectively.

The following unaudited pro forma information gives effect to Eaton's acquisition of Cooper as if the acquisition had occurred on January 1, 2012 and Cooper had been included in Eaton's consolidated results of operations for the year ended December 31, 2012.

	2012
Net sales	$	21,792
Net income from continuing operations attributable to Eaton ordinary shareholders	1,695
Diluted earnings per share from continuing operations	$	3.54

The historical consolidated financial information of Eaton and Cooper has been adjusted in the pro forma information to give effect to pro forma events that are (1) directly attributable to the transaction, (2) factually supportable and (3) expected to have a continuing impact on the combined results. For pro forma purposes, the equity in income of Apex Tool Group, LLC has been excluded as this joint venture was sold on February 1, 2013.

Acquisitions and Sales of Other Businesses

In 2012, Eaton acquired other businesses in separate transactions. The Consolidated Statements of Income include the results of these businesses from the dates of the transactions. These transactions, and the related annual sales prior to acquisition, are summarized below:

Acquired businesses	Date of transaction	Business segment	Annual sales
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 additional information about acquisition integration charges and transaction costs related to Eaton's business acquisitions.

Sale of Aerospace Power Distribution Management Solutions and Integrated Cockpit Solutions

On May 9, 2014, Eaton sold the Aerospace Power Distribution Management Solutions and Integrated Cockpit Solutions businesses to Safran for $270, which resulted in a pre-tax gain of $154.

Sale of Apex Tool Group, LLC

In July 2010, Cooper formed a joint venture, named Apex Tool Group, LLC (Apex), with Danaher Corporation (Danaher). On February 1, 2013, Cooper and Danaher sold Apex to Bain Capital for approximately $1.6 billion, subject to post-closing adjustments.

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Retirement Benefits Plans - Change in Benefit Obligations (Details 1) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
United States pension liabilities [Member]
Change in benefit obligations
Balance at January 1	$ 3,625	$ 3,817
Service cost	117	128	115
Interest cost	162	147	134
Actuarial loss (gain)	470	(223)
Gross benefits paid	(329)	(246)
Currency translation	0	0
Plan amendments	2	2
Other	0	0
Balance at December 31	4,047	3,625	3,817
Accumulated benefit obligation	3,894	3,458
Non-United States pension liabilities [Member]
Change in benefit obligations
Balance at January 1	2,127	2,017
Service cost	66	62	50
Interest cost	85	80	77
Actuarial loss (gain)	355	21
Gross benefits paid	(106)	(90)
Currency translation	(190)	36
Plan amendments	0	4
Other	0	(3)
Balance at December 31	2,337	2,127	2,017
Accumulated benefit obligation	2,181	2,003
Other postretirement liabilities [Member]
Change in benefit obligations
Balance at January 1	867	950
Service cost	13	20	17
Interest cost	32	35	38
Actuarial loss (gain)	(36)	(54)
Gross benefits paid	(91)	(103)
Currency translation	(4)	(2)
Plan amendments	(84)	0
Other	(21)	21
Balance at December 31	$ 676	$ 867	$ 950

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Eaton Shareholders' Equity Eaton Shareholders' Equity - Other Comprehensive Income (Loss) (Details) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Equity [Abstract]
Currency translation and related hedging instuments pre-tax	$ (1,014)	$ (30)	$ 144
Currency translation and related hedging instruments after-tax	(1,019)	(28)	135
Pension and Other Postretirement Benefits [Abstract]
Prior service credit (cost) arising during the year pre-tax	82	(6)	(1)
Prior service credit (cost) arising during the year after-tax	51	(4)	(1)
Net (loss) gain arising during the year pre-tax	(718)	456	(386)
Net (loss) gain arising during the year after-tax	(519)	277	(262)
Currency translation pre-tax	56	(5)	(15)
Currency translation after-tax	47	(4)	(12)
Other pre-tax	0	2	(2)
Other after-tax	(4)	16	15
Amortization of actuarial loss and prior service cost reclassified to earnings pre-tax	168	229	170
Amortization of actuarial loss and prior service cost reclassified to earnings after-tax	110	144	108
Total pensions and other postretirement benefits included in other comprehensive income (loss), pre-tax	(412)	676	(234)
Total pensions and other postretirement benefits included in other comprehensive income (loss), after-tax	(315)	429	(152)
Other Accumulated Comprehensive Income (Loss) Cash Flow Hedges
(Loss) gain on derivatives designated as cash flow hedges pre-tax	(3)	6	10
(Loss) gain on derivatives designated as cash flow hedges after-tax	(2)	3	10
Changes in cash flow hedges reclassified to earnings pre-tax	(5)	0	7
Changes in cash flow hedges reclassified to earnings after-tax	(3)	0	7
Cash flow hedges, net of reclassification adjustments pre-tax	(8)	6	17
Cash flow hedges, net of reclassification adjustments after-tax	(5)	3	17
Other comprehensive (loss) income attributable to Eaton ordinary shareholders pre-tax	(1,434)	652	(73)
Other comprehensive (loss) income attributable to Eaton ordinary shareholders after-tax	$ (1,339)	$ 404	$ 0

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Retirement Benefits Plans Retirement Benefits Plans - Fair Value of Other Postretirement Benefits Plan Assets (Details 12) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Fair Value of Other Postretirement Benefits Plan Assets [Line Items]
Global equities	$ 54	$ 70
Fixed income securities	24	29
United States treasuries	37	38
Cash equivalents	1	1
Total other postretirement benefits plan assets	116	138
VEBA target trust allocation in diversified global equities	50.00%
VEBA target trust allocation in fixed income securities	50.00%
Quoted prices in active markets for identical assets (Level 1) [Member]
Fair Value of Other Postretirement Benefits Plan Assets [Line Items]
Global equities	0	0
Fixed income securities	0	0
United States treasuries	37	38
Cash equivalents	1	1
Total other postretirement benefits plan assets	38	39
Other observable inputs (Level 2) [Member]
Fair Value of Other Postretirement Benefits Plan Assets [Line Items]
Global equities	54	70
Fixed income securities	24	29
United States treasuries	0	0
Cash equivalents	0	0
Total other postretirement benefits plan assets	78	99
Unobservable inputs (Level 3) [Member]
Fair Value of Other Postretirement Benefits Plan Assets [Line Items]
Global equities	0	0
Fixed income securities	0	0
United States treasuries	0	0
Cash equivalents	0	0
Total other postretirement benefits plan assets	$ 0	$ 0

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Goodwill and Other Intangible Assets Goodwill (Tables)

12 Months Ended

Dec. 31, 2014

Goodwill and Intangible Assets Disclosure [Abstract]

Rollforward of goodwill

Changes in the carrying amount of goodwill by segment follow:

	Electrical Products			Electrical Systems and Services			Hydraulics			Aerospace			Vehicle			Total
December 31, 2012	$	7,117		$	4,520		$	1,404		$	1,045		$	357		$	14,443
Additions	1			22			4			—			—			27
Translation adjustments	71			(25		)	(23		)	3			(1		)	25
December 31, 2013	7,189			4,517			1,385			1,048			356			14,495
Goodwill written off from    sale of businesses	—			—			—			(78		)	—			(78		)
Translation adjustments	(249		)	(203		)	(58		)	(8		)	(6		)	(524		)
December 31, 2014	$	6,940		$	4,314		$	1,327		$	962		$	350		$	13,893

Summary of other intangible assets

A summary of other intangible assets follows:

	2014				2013
	Historical cost		Accumulated amortization		Historical cost		Accumulated amortization
Intangible assets not subject to amortization
Trademarks	$	1,844			$	1,868
Intangible assets subject to amortization
Customer relationships	$	3,674	$	834	$	3,859	$	669
Patents and technology	1,494		440		1,588		389
Trademarks	980		250		1,052		215
Other	103		15		103		11
Total intangible assets subject to amortization	$	6,251	$	1,539	$	6,602	$	1,284

Expense related to intangible assets subject to amortization in 2014, and for each of the next five years

Amortization expense related to intangible assets subject to amortization in 2014, and estimated amortization expense for each of the next five years, follows:

2014	$	424
2015	410
2016	397
2017	387
2018	367
2019	360

Other intangible assets related to the acquisition of Cooper [Table Text Block]

The final adjusted estimated fair value, as of November 30, 2012, of these identifiable intangible assets, their estimated useful lives and valuation methodology are as follows:

	Fair value		Useful life	Valuation method
Trade names (indefinite-lived)	$	1,410	N/A	Relief-from-royalty
Trade names	638		3-20	Relief-from-royalty
Customer relationships	2,510		13-18	Multi-period excess earnings
Technology	767		4-20	Relief-from-royalty; Multi-period excess earnings
Contract-based	44		9.5	Relief-from-royalty
	$	5,369

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Income Taxes Reconciliations of Income Taxes from the Appropriate Statutory Rate (Details)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Reconciliation of income taxes from appropriate statutory rate to the consolidated effective income tax rate [Line Items]
Effective income tax rate reconciliation, at Ireland statutory income tax rate, percent	25.00%	25.00%
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent			35.00%
Income taxes at the applicable statutory rate	25.00%	25.00%	35.00%
Effective income tax (benefit) expense rate	(2.40%)	0.60%	2.50%
Ireland operations
Reconciliation of income taxes from appropriate statutory rate to the consolidated effective income tax rate [Line Items]
Ireland tax on trading income	(0.10%)	(1.40%)	0.00%
Nondeductible interest expense	4.80%	0.00%	0.00%
United States operations [Member]
Reconciliation of income taxes from appropriate statutory rate to the consolidated effective income tax rate [Line Items]
United States (loss) income	(2.80%)	(2.80%)	0.00%
Nondeductible goodwill - Aerospace divestitures	1.40%	0.00%	0.00%
Credit for research activities	(1.00%)	(2.00%)	0.00%
Other	1.50%	1.30%	1.80%
Other foreign operations [Member]
Reconciliation of income taxes from appropriate statutory rate to the consolidated effective income tax rate [Line Items]
Other	(1.00%)	0.20%	0.00%
United States foreign tax credit	(1.10%)	(1.80%)	(12.40%)
Other foreign operations (earnings taxed at other than the applicable statutory tax rate)	(24.80%)	(17.60%)	(14.90%)
Worldwide Operations [Member]
Reconciliation of income taxes from appropriate statutory rate to the consolidated effective income tax rate [Line Items]
Adjustments to tax liabilities	(1.70%)	(1.10%)	(5.70%)
Adjustments to valuation allowance	(2.60%)	0.80%	(1.30%)
Effective Income Tax Rate [Member]
Reconciliation of income taxes from appropriate statutory rate to the consolidated effective income tax rate [Line Items]
Effective income tax (benefit) expense rate	(2.40%)	0.60%	2.50%

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Condensed Consolidating Financial Statements Condensed Consolidating Financial Statements (Tables)

12 Months Ended

Dec. 31, 2014

Condensed Consolidating Financial Statements, Captions [Line Items]

Condensed Consolidating Financial Statements [Table Text Block]

CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME YEAR ENDED DECEMBER 31, 2014
	Eaton Corporation plc			Eaton Corporation			Guarantors			Other subsidiaries			Consolidating adjustments			Total
Net sales	$	—		$	6,990		$	6,885		$	13,521		$	(4,844	)	$	22,552
Cost of products sold	—			5,519			5,075			9,882			(4,830		)	15,646
Selling and administrative expense	171			1,246			743			1,650			—			3,810
Litigation settlements	—			644			—			—			—			644
Research and development expense	—			240			202			205			—			647
Interest expense (income) - net	—			225			25			(29		)	6			227
Other income - net	—			(17		)	(81		)	(85		)	—			(183		)
Equity in (earnings) loss of    subsidiaries, net of tax	(2,191		)	(674		)	(2,655		)	(302		)	5,822			—
Intercompany expense    (income) - net	227			(263		)	855			(819		)	—			—
Income before income taxes	1,793			70			2,721			3,019			(5,842		)	1,761
Income tax (benefit) expense	—			(100		)	76			(11		)	(7		)	(42		)
Net income	1,793			170			2,645			3,030			(5,835		)	1,803
Less net income for    noncontrolling interests	—			—			—			(8		)	(2		)	(10		)
Net income attributable to    Eaton ordinary shareholders	$	1,793		$	170		$	2,645		$	3,022		$	(5,837	)	$	1,793
Other comprehensive loss	(1,339		)	(195		)	(1,367		)	(1,644		)	3,206			(1,339		)
Total comprehensive income    (loss) attributable to Eaton    ordinary shareholders	$	454		$	(25	)	$	1,278		$	1,378		$	(2,631	)	$	454

CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME YEAR ENDED DECEMBER 31, 2013
	Eaton Corporation plc			Eaton Corporation			Guarantors			Other subsidiaries			Consolidating adjustments			Total
Net sales	$	—		$	6,695		$	6,421		$	13,579		$	(4,649	)	$	22,046
Cost of products sold	—			5,227			4,784			10,010			(4,652		)	15,369
Selling and administrative expense	32			1,400			749			1,705			—			3,886
Research and development expense	—			255			200			189			—			644
Interest expense (income) - net	—			271			28			(22		)	(6		)	271
Other expense (income) - net	—			8			4			(20		)	—			(8		)
Equity in (earnings) loss of    subsidiaries, net of tax	(2,147		)	(668		)	(2,006		)	(288		)	5,109			—
Intercompany expense (income) - net	254			(155		)	(433		)	334			—			—
Income before income taxes	1,861			357			3,095			1,671			(5,100		)	1,884
Income tax (benefit) expense	—			(108		)	(90		)	207			2			11
Net income	1,861			465			3,185			1,464			(5,102		)	1,873
Less net income for    noncontrolling interests	—			—			—			(9		)	(3		)	(12		)
Net income attributable to    Eaton ordinary shareholders	$	1,861		$	465		$	3,185		$	1,455		$	(5,105	)	$	1,861
Other comprehensive income	404			219			474			258			(951		)	404
Total comprehensive income    attributable to Eaton    ordinary shareholders	$	2,265		$	684		$	3,659		$	1,713		$	(6,056	)	$	2,265

CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME YEAR ENDED DECEMBER 31, 2012
	Eaton Corporation plc			Eaton Corporation			Guarantors			Other subsidiaries			Consolidating adjustments			Total
Net sales	$	—		$	6,680		$	2,849		$	10,346		$	(3,564	)	$	16,311
Cost of products sold	—			5,115			2,193			7,708			(3,568		)	11,448
Selling and administrative expense	—			1,307			335			1,252			—			2,894
Research and development expense	—			230			108			101			—			439
Interest expense (income) - net	—			229			8			(29		)	—			208
Other income - net	—			10			48			13			—			71
Equity in (earnings) loss of    subsidiaries, net of tax	(1,219		)	(236		)	(1,292		)	(123		)	2,870			—
Intercompany expense (income) - net	2			(237		)	42			193			—			—
Income before income taxes	1,217			262			1,407			1,231			(2,866		)	1,251
Income tax expense	—			24			—			6			1			31
Net income	1,217			238			1,407			1,225			(2,867		)	1,220
Less net income for    noncontrolling interests	—			—			—			(3		)	—			(3		)
Net income attributable to    Eaton ordinary shareholders	$	1,217		$	238		$	1,407		$	1,222		$	(2,867	)	$	1,217
Other comprehensive (loss) income	—			(27		)	(17		)	82			(38		)	—
Total comprehensive income    (loss) attributable to Eaton    ordinary shareholders	$	1,217		$	211		$	1,390		$	1,304		$	(2,905	)	$	1,217

CONDENSED CONSOLIDATING BALANCE SHEETS DECEMBER 31, 2014
	Eaton Corporation plc		Eaton Corporation		Guarantors		Other subsidiaries		Consolidating adjustments			Total
Assets
Current assets
Cash	$	1	$	173	$	13	$	594	$	—		$	781
Short-term investments	—		—		1		244		—			245
Accounts receivable - net	—		500		955		2,212		—			3,667
Intercompany accounts receivable	2		759		3,820		4,101		(8,682		)	—
Inventory	—		397		637		1,445		(51		)	2,428
Prepaid expenses and other    current assets	—		464		171		340		4			979
Total current assets	3		2,293		5,597		8,936		(8,729		)	8,100
Property, plant and equipment - net	—		972		756		2,022		—			3,750
Other noncurrent assets
Goodwill	—		1,355		6,256		6,282		—			13,893
Other intangible assets	—		196		3,811		2,549		—			6,556
Deferred income taxes	—		889		10		137		(808		)	228
Investment in subsidiaries	26,612		12,179		58,687		9,145		(106,623		)	—
Intercompany loans receivable	—		7,542		2,249		40,635		(50,426		)	—
Other assets	—		533		141		328		—			1,002
Total assets	$	26,615	$	25,959	$	77,507	$	70,034	$	(166,586	)	$	33,529
Liabilities and shareholders’    equity
Current liabilities
Short-term debt	$	—	$	—	$	—	$	2	$	—		$	2
Current portion of long-term debt	—		702		304		2		—			1,008
Accounts payable	—		475		340		1,125		—			1,940
Intercompany accounts payable	117		4,125		3,449		991		(8,682		)	—
Accrued compensation	—		112		59		249		—			420
Other current liabilities	1		674		340		984		(14		)	1,985
Total current liabilities	118		6,088		4,492		3,353		(8,696		)	5,355
Noncurrent liabilities
Long-term debt	—		7,079		932		13		—			8,024
Pension liabilities	—		726		183		903		—			1,812
Other postretirement benefits    liabilities	—		283		136		94		—			513
Deferred income taxes	—		—		1,160		549		(808		)	901
Intercompany loans payable	10,711		2,723		36,162		830		(50,426		)	—
Other noncurrent liabilities	—		457		183		445		—			1,085
Total noncurrent liabilities	10,711		11,268		38,756		2,834		(51,234		)	12,335
Shareholders’ equity
Eaton shareholders' equity	15,786		8,603		34,259		63,802		(106,664		)	15,786
Noncontrolling interests	—		—		—		45		8			53
Total equity	15,786		8,603		34,259		63,847		(106,656		)	15,839
Total liabilities and equity	$	26,615	$	25,959	$	77,507	$	70,034	$	(166,586	)	$	33,529

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		3,369		4,469		(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		5,219		10,049		(8,342		)	8,731
Property, plant and equipment - net	—		982		761		2,090		—			3,833
Other noncurrent assets
Goodwill	—		1,382		6,294		6,819		—			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		4,743		38,039		1,576		(69,298		)	—
Intercompany loans receivable	—		8,019		2,312		18,822		(29,153		)	—
Other assets	—		450		186		370		—			1,006
Total assets	$	24,948	$	18,423	$	56,810	$	42,850	$	(107,540	)	$	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		3,734		3,266		1,310		(8,314		)	—
Accrued compensation	—		140		37		284		—			461
Other current liabilities	5		547		400		965		(4		)	1,913
Total current liabilities	9		5,413		4,083		3,727		(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		18,253		639		(29,153		)	—
Other noncurrent liabilities	—		652		161		486		—			1,299
Total noncurrent liabilities	8,148		11,406		21,285		2,781		(29,906		)	13,714
Shareholders’ equity
Eaton shareholders' equity	16,791		1,604		31,442		36,276		(69,322		)	16,791
Noncontrolling interests	—		—		—		66		6			72
Total equity	16,791		1,604		31,442		36,342		(69,316		)	16,863
Total liabilities and equity	$	24,948	$	18,423	$	56,810	$	42,850	$	(107,540	)	$	35,491

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS DECEMBER 31, 2014
	Eaton Corporation plc			Eaton Corporation			Guarantors			Other subsidiaries			Consolidating adjustments			Total
Net cash (used in) provided by    operating activities	$	(93	)	$	(411	)	$	(218	)	$	2,568		$	32		$	1,878
Investing activities
Capital expenditures for property,    plant and equipment	—			(127		)	(168		)	(337		)	—			(632		)
Cash received from acquisitions of    businesses, net of cash paid	—			—			—			2			—			2
Sales of short-term investment - net	—			—			133			389			—			522
Investments in affiliates	(753		)	—			—			(753		)	1,506			—
Loans to affiliates	—			(354		)	(162		)	(10,546		)	11,062			—
Repayments of loans from affiliates	—			978			212			8,451			(9,641		)	—
Proceeds from the sales    of businesses	—			93			175			14			—			282
Other - net	—			(47		)	44			(28		)	—			(31		)
Net cash (used in) provided by     investing activities	(753		)	543			234			(2,808		)	2,927			143
Financing activities
Payments on borrowings	—			(553		)	(1		)	(28		)	—			(582		)
Proceeds from borrowings from    affiliates	2,628			7,599			808			27			(11,062		)	—
Payments on borrowings from    affiliates	(476		)	(6,907		)	(1,875		)	(383		)	9,641			—
Capital contribution from affiliates	—			—			753			753			(1,506		)	—
Other intercompany financing    activities	217			(169		)	302			(350		)	—			—
Cash dividends paid	(929		)	—			—			—			—			(929		)
Cash dividends received from    affiliates	—			—			—			32			(32		)	—
Exercise of employee stock    options	54			—			—			—			—			54
(Repurchase) of shares	(650		)	—			—			—			—			(650		)
Excess tax benefit from    equity-based compensation	—			20			—			—			—			20
Other - net	—			—			—			(43		)	—			(43		)
Net cash provided by (used in)    financing activities	844			(10		)	(13		)	8			(2,959		)	(2,130		)
Effect of currency on cash	—			—			—			(25		)	—			(25		)
Total (decrease) increase in cash	(2		)	122			3			(257		)	—			(134		)
Cash at the beginning of the period	3			51			10			851			—			915
Cash at the end of the period	$	1		$	173		$	13		$	594		$	—		$	781

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS DECEMBER 31, 2013
	Eaton Corporation plc			Eaton Corporation			Guarantors			Other subsidiaries			Consolidating adjustments			Total
Net cash (used in) provided by    operating activities	$	(17	)	$	860		$	428		$	1,067		$	(53	)	$	2,285
Investing activities
Capital expenditures for property,    plant and equipment	—			(171		)	(119		)	(324		)	—			(614		)
Cash paid for acquisitions of    businesses, net of cash acquired	—			—			—			(9		)	—			(9		)
Sales (purchases) of short-term    investments - net	—			25			(95		)	(218		)	—			(288		)
Loans to affiliates	—			(535		)	(545		)	(6,215		)	7,295			—
Repayments of loans from affiliates	—			36			626			5,795			(6,457		)	—
Proceeds from the sales    of businesses	—			—			—			777			—			777
Other - net	—			(41		)	(12		)	(15		)	—			(68		)
Net cash (used in)     investing activities	—			(686		)	(145		)	(209		)	838			(202		)
Financing activities
Proceeds from borrowings	—			—			—			9			—			9
Payments on borrowings	—			(1,048		)	(43		)	(5		)	—			(1,096		)
Proceeds from borrowings from    affiliates	—			2,395			4,260			640			(7,295		)	—
Payments on borrowings from    affiliates	—			(2,921		)	(2,874		)	(662		)	6,457			—
Other intercompany financing    activities	688			1,365			(1,630		)	(423		)	—			—
Cash dividends paid	(796		)	—			—			—			—			(796		)
Cash dividends paid to affiliates	—			—			—			(53		)	53			—
Exercise of employee stock options	121			—			—			—			—			121
Excess tax benefit from equity-based    compensation	—			32			—			—			—			32
Other - net	—			—			—			(6		)	—			(6		)
Net cash provided by (used in)    financing activities	13			(177		)	(287		)	(500		)	(785		)	(1,736		)
Effect of currency on cash	—			—			—			(9		)	—			(9		)
Total (decrease) increase in cash	(4		)	(3		)	(4		)	349			—			338
Cash at the beginning of the period	7			54			14			502			—			577
Cash at the end of the period	$	3		$	51		$	10		$	851		$	—		$	915

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS DECEMBER 31, 2012
	Eaton Corporation plc			Eaton Corporation			Guarantors			Other subsidiaries			Consolidating adjustments			Total
Net cash (used in) provided by    operating activities	$	(60	)	$	1,037		$	217		$	487		$	(17	)	$	1,664
Investing activities
Capital expenditures for property,    plant and equipment	—			(291		)	(73		)	(229		)	—			(593		)
Cash (paid for) received from    acquisitions of businesses, net of    cash acquired	(6,542		)	—			11			(405		)	—			(6,936		)
Sales of short-term    investments - net	—			175			210			218			—			603
Loans to affiliates	—			(6,693		)	—			(8,054		)	14,747			—
Repayments of loans from affiliates	—			268			—			8,175			(8,443		)	—
Proceeds from the sales of    businesses	—			2			—			1			—			3
Other - net	—			(28		)	2			(23		)	—			(49		)
Net cash (used in) provided by    investing activities	(6,542		)	(6,567		)	150			(317		)	6,304			(6,972		)
Financing activities
Proceeds from borrowings	—			7,156			—			—			—			7,156
Payments on borrowings	—			(1,306		)	(16		)	(2		)	—			(1,324		)
Payments of financing costs	—			(117		)	—			—			—			(117		)
Proceeds from borrowings from    affiliates	5			8,054			6,425			263			(14,747		)	—
Payments on borrowings from    affiliates	(5		)	(8,175		)	—			(263		)	8,443			—
Other intercompany financing    activities	—			273			(340		)	67			—			—
Cash dividends paid	—			(512		)	—			—			—			(512		)
Cash dividends paid to affiliates	—			—			—			(17		)	17			—
Exercise of employee stock options	25			70			—			—			—			95
Issuance (repurchase) of shares	6,584			—			(6,425		)	—			—			159
Excess tax benefit from equity-based    compensation	—			21			—			—			—			21
Other - net	—			—			—			2			—			2
Net cash provided by (used in)    financing activities	6,609			5,464			(356		)	50			(6,287		)	5,480
Effect of currency on cash	—			—			—			20			—			20
Total increase (decrease) in cash	7			(66		)	11			240			—			192
Cash at the beginning of the period	—			120			3			262			—			385
Cash at the end of the period	$	7		$	54		$	14		$	502		$	—		$	577

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Derivative Financial Instruments and Hedging Activities

12 Months Ended

Dec. 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 Consolidated Balance Sheets. Accounting for the gain or loss resulting from the change in the fair value of the derivative financial instrument depends on whether it has been designated, and is effective, as part of a hedging relationship and, if so, as to the nature of the hedging activity. Eaton formally documents all relationships between derivative financial instruments accounted for as designated hedges and the hedged item, as well as its risk-management objective and strategy for undertaking the hedge transaction. This process includes linking derivative financial instruments to a recognized asset or liability, specific firm commitment, forecasted transaction, or net investment in a foreign operation. These financial instruments can be designated as:

• Hedges of the change in the fair value of a recognized fixed-rate asset or liability, or the firm commitment to acquire such an asset or liability (a fair value hedge); for these hedges, the gain or loss from the derivative financial instrument, as well as the offsetting loss or gain on the hedged item attributable to the hedged risk, are recognized in income during the period of change in fair value.

• Hedges of the variable cash flows of a recognized variable-rate asset or liability, or the forecasted acquisition of such an asset or liability (a cash flow hedge); for these hedges, the effective portion of the gain or loss from the derivative financial instrument is recognized in Accumulated other comprehensive loss and reclassified to income in the same period when the gain or loss on the hedged item is included in income.

• Hedges of the currency exposure related to a net investment in a foreign operation (a net investment hedge); for these hedges, the effective portion of the gain or loss from the derivative financial instrument is recognized in Accumulated other comprehensive loss and reclassified to income in the same period when the gain or loss related to the net investment in the foreign operation is included in income.

The gain or loss from a derivative financial instrument designated as a hedge that is effective is classified in the same line of the Consolidated Statements of Income as the offsetting loss or gain on the hedged item. The change in fair value of a derivative financial instrument that is not effective as a hedge is immediately recognized in income.

For derivatives that are not designated as a hedge, any gain or loss is immediately recognized in income. The majority of derivatives used in this manner relate to risks resulting from assets or liabilities denominated in a foreign currency and certain commodity contracts that arise in the normal course of business. Gains and losses associated with commodity hedge contracts are classified in Cost of products sold.

Eaton uses certain of its debt denominated in foreign currency to hedge portions of its net investments in foreign operations against foreign currency exposure (net investment hedges). Foreign currency denominated debt designated on an after-tax basis as non-derivative net investment hedging instruments was $84 and $95 at December 31, 2014 and 2013, respectively. See Note 5 for additional information about debt.

Interest Rate Risk

Eaton has entered into fixed-to-floating interest rate swaps to manage interest rate risk of certain long-term debt. These interest rate swaps are accounted for as fair value hedges of certain long-term debt. The maturity of the swap corresponds with the maturity of the debt instrument as noted in the table of long-term debt in Note 5.

A summary of interest rate swaps outstanding at December 31, 2014, follows:

Fixed-to-Floating Interest Rate Swaps

Notional amount	Fixed interest rate received	Floating interest rate paid	Basis for contracted floating interest rate paid
150	5.30%	4.42%	1 month LIBOR + 4.26%
650	1.50%	0.59%	1 month LIBOR + 0.43%
415	5.60%	3.51%	6 month LIBOR + 3.18%
300	6.95%	5.30%	3 month LIBOR + 5.07%
25	8.875%	4.18%	6 month LIBOR + 3.84%
150	3.875%	2.28%	1 month LIBOR + 2.12%
200	3.47%	1.85%	1 month LIBOR + 1.69%
1,250	2.75%	0.67%	1 month LIBOR + 0.52%
200	3.68%	1.23%	1 month LIBOR + 1.07%
25	7.625%	2.81%	6 month LIBOR + 2.48%
50	7.65%	2.89%	6 month LIBOR + 2.57%
25	5.45%	0.60%	6 month LIBOR + 0.28%

Derivative Financial Statement Impacts

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

	Notional amount		Other  current assets		Other noncurrent assets		Other current liabilities		Other noncurrent liabilities		Type of hedge	Term
December 31, 2014
Derivatives designated as hedges
Fixed-to-floating interest rate swaps	$	3,440	$	—	$	84	$	—	$	10	Fair value	2 to 19 years
Currency exchange contracts	432		8		1		5		3		Cash flow	1 to 36 months
Commodity contracts	1		—		—		—		—		Cash flow	1 to 12 months
Total			$	8	$	85	$	5	$	13
Derivatives not designated as hedges
Currency exchange contracts	$	4,447	$	47			$	52				1 to 12 months
Total			$	47			$	52

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
Total			$	22			$	26

The currency exchange contracts shown in the table above as derivatives not designated as hedges are primarily contracts entered into to manage currency volatility or exposure on intercompany sales and loans. While Eaton does not elect hedge accounting treatment for these derivatives, Eaton targets managing 100% of the intercompany balance sheet exposure to minimize the effect of currency volatility related to the movement of goods and services in the normal course of its operations. This activity represents the great majority of these currency exchange contracts.

The impact of derivative instruments to the Consolidated Statements of Income and Comprehensive Income follow:

	Gain (loss) recognized in other comprehensive (loss) income					Location of gain (loss) reclassified from Accumulated other comprehensive loss	Gain (loss) reclassified from Accumulated other comprehensive loss
	2014			2013			2014			2013
Derivatives designated as cash flow hedges
Floating-to-fixed interest rate swaps	$	—		$	—	Interest expense - net	$	(1	)	$	(1	)
Currency exchange contracts	(3		)	6		Cost of products sold	6			2
Commodity contracts	—			—		Cost of products sold	—			(1		)
Total	$	(3	)	$	6		$	5		$	—

Amounts recognized in net income follow:

	2014			2013
Derivatives designated as fair value hedges
Fixed-to-floating interest rate swaps	$	113		$	(126	)
Related long-term debt converted to floating interest    rates by interest rate swaps	(113		)	126
	$	—		$	—

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

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Business Segment and Geographic Region Information Business Segment and Geographic Region Information (Details 1) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Segment Reporting Information [Line Items]
Total assets	$ 33,529	$ 35,491	$ 35,810
Goodwill	13,893	14,495	14,443
Other intangible assets	6,556	7,186	7,580
Capital expenditures for property, plant and equipment	632	614	593
Depreciation of property, plant and equipment	514	516	381
Electrical Products [Member]
Segment Reporting Information [Line Items]
Total assets	3,012	3,204	3,338
Goodwill	6,940	7,189	7,117
Capital expenditures for property, plant and equipment	170	152	108
Depreciation of property, plant and equipment	148	151	78
Electrical Systems and Services [Member]
Segment Reporting Information [Line Items]
Total assets	2,512	2,683	2,408
Goodwill	4,314	4,517	4,520
Capital expenditures for property, plant and equipment	147	113	47
Depreciation of property, plant and equipment	90	86	42
Hydraulics [Member]
Segment Reporting Information [Line Items]
Total assets	1,315	1,362	1,426
Goodwill	1,327	1,385	1,404
Capital expenditures for property, plant and equipment	79	80	60
Depreciation of property, plant and equipment	67	65	61
Aerospace [Member]
Segment Reporting Information [Line Items]
Total assets	832	852	806
Goodwill	962	1,048	1,045
Capital expenditures for property, plant and equipment	28	29	27
Depreciation of property, plant and equipment	28	27	26
Vehicle [Member]
Segment Reporting Information [Line Items]
Total assets	1,668	1,716	1,698
Goodwill	350	356	357
Capital expenditures for property, plant and equipment	160	161	148
Depreciation of property, plant and equipment	130	133	136
All Segments [Member]
Segment Reporting Information [Line Items]
Total assets	9,339	9,817	9,676
Capital expenditures for property, plant and equipment	584	535	390
Depreciation of property, plant and equipment	463	462	343
Corporate [Member]
Segment Reporting Information [Line Items]
Total assets	3,741	3,993	4,111
Capital expenditures for property, plant and equipment	48	79	203
Depreciation of property, plant and equipment	$ 51	$ 54	$ 38