10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

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

For the quarterly period ended March 31, 2018

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	D04 Y0C2
(Address of principal executive offices)	(Zip Code)

+353 1637 2900

(Registrant's telephone number, including area code)

Not applicable

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

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

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

Yes þ No o

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

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

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange

Act. o

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

There were 437.3 million Ordinary Shares outstanding as of March 31, 2018.

TABLE OF CONTENTS
PART I — FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS	2
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	27
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	32
ITEM 4. CONTROLS AND PROCEDURES	32
PART II — OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS	33
ITEM 1A. RISK FACTORS	33
ITEM 2. UNRESTRICTED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS	33
ITEM 5. OTHER INFORMATION	33
ITEM 6. EXHIBITS	34
SIGNATURES	35

PART I — FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS.

EATON CORPORATION plc

CONSOLIDATED STATEMENTS OF INCOME

	Three months ended March 31
(In millions except for per share data)	2018			2017
Net sales	$	5,251		$	4,848
Cost of products sold	3,573			3,307
Selling and administrative expense	889			876
Research and development expense	156			143
Interest expense - net	70			61
Other income - net	(2		)	(6		)
Income before income taxes	565			467
Income tax expense	78			33
Net income	487			434
Less net loss for noncontrolling interests	1			—
Net income attributable to Eaton ordinary shareholders	$	488		$	434
Net income per share attributable to Eaton ordinary shareholders
Diluted	$	1.10		$	0.96
Basic	1.11			0.97
Weighted-average number of ordinary shares outstanding
Diluted	441.7			451.0
Basic	438.8			448.8
Cash dividends declared per ordinary share	$	0.66		$	0.60

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

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EATON CORPORATION plc

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

	Three months ended March 31
(In millions)	2018		2017
Net income	$	487	$	434
Less net loss for noncontrolling interests	1		—
Net income attributable to Eaton ordinary shareholders	488		434
Other comprehensive income, net of tax
Currency translation and related hedging instruments	257		228
Pensions and other postretirement benefits	26		33
Cash flow hedges	13		2
Other comprehensive income attributable to Eaton    ordinary shareholders	296		263
Total comprehensive income attributable to Eaton   ordinary shareholders	$	784	$	697

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

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EATON CORPORATION plc

CONDENSED CONSOLIDATED BALANCE SHEETS

(In millions)	March 31, 2018			December 31, 2017
Assets
Current assets
Cash	$	317		$	561
Short-term investments	510			534
Accounts receivable - net	4,005			3,943
Inventory	2,745			2,620
Prepaid expenses and other current assets	552			679
Total current assets	8,129			8,337
Property, plant and equipment
Land and buildings	2,531			2,491
Machinery and equipment	6,135			6,014
Gross property, plant and equipment	8,666			8,505
Accumulated depreciation	(5,123		)	(5,003		)
Net property, plant and equipment	3,543			3,502
Other noncurrent assets
Goodwill	13,698			13,568
Other intangible assets	5,206			5,265
Deferred income taxes	356			253
Other assets	1,736			1,698
Total assets	$	32,668		$	32,623
Liabilities and shareholders’ equity
Current liabilities
Short-term debt	$	185		$	6
Current portion of long-term debt	847			578
Accounts payable	2,203			2,166
Accrued compensation	300			453
Other current liabilities	1,861			1,872
Total current liabilities	5,396			5,075
Noncurrent liabilities
Long-term debt	6,845			7,167
Pension liabilities	1,225			1,226
Other postretirement benefits liabilities	359			362
Deferred income taxes	557			538
Other noncurrent liabilities	985			965
Total noncurrent liabilities	9,971			10,258
Shareholders’ equity
Eaton shareholders’ equity	17,263			17,253
Noncontrolling interests	38			37
Total equity	17,301			17,290
Total liabilities and equity	$	32,668		$	32,623

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

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EATON CORPORATION plc

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

	Three months ended March 31
(In millions)	2018			2017
Operating activities
Net income	$	487		$	434
Adjustments to reconcile to net cash provided by operating activities
Depreciation and amortization	230			225
Deferred income taxes	(12		)	(37		)
Pension and other postretirement benefits expense	43			51
Contributions to pension plans	(40		)	(128		)
Contributions to other postretirement benefits plans	(5		)	(6		)
Changes in working capital	(459		)	(166		)
Other - net	95			90
Net cash provided by operating activities	339			463
Investing activities
Capital expenditures for property, plant and equipment	(131		)	(116		)
Sales (purchases) of short-term investments - net	31			(93		)
Other - net	(37		)	(20		)
Net cash used in investing activities	(137		)	(229		)
Financing activities
Proceeds from borrowings	179			194
Payments on borrowings	(33		)	(254		)
Cash dividends paid	(284		)	(263		)
Exercise of employee stock options	19			38
Repurchase of shares	(300		)	(255		)
Employee taxes paid from shares withheld	(23		)	(20		)
Other - net	(1		)	(3		)
Net cash used in financing activities	(443		)	(563		)
Effect of currency on cash	(3		)	8
Total decrease in cash	(244		)	(321		)
Cash at the beginning of the period	561			543
Cash at the end of the period	$	317		$	222

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

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EATON CORPORATION plc

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

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

Note 1. BASIS OF PRESENTATION

The accompanying unaudited condensed consolidated financial statements of Eaton Corporation plc (Eaton or the Company) have been prepared in accordance with generally accepted accounting principles for interim financial information, the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by United States generally accepted accounting principles (US GAAP) for complete financial statements. However, in the opinion of management, all adjustments (consisting of normal recurring accruals) have been made that are necessary for a fair presentation of the condensed consolidated financial statements for the interim periods.

This Form 10-Q should be read in conjunction with the consolidated financial statements and related notes included in Eaton’s 2017 Form 10-K. The interim period results are not necessarily indicative of the results to be expected for the full year. Management has evaluated subsequent events through the date this Form 10-Q was filed with the Securities and Exchange Commission.

During the first quarter of 2018, Eaton re-segmented certain reportable operating segments due to a reorganization of the Company's businesses. The new reportable business segment is eMobility (which includes certain legacy Electrical Products and Vehicle product lines). For the reportable segments that were re-segmented, previously reported segment financial information has been updated for 2016 and 2017. See Note 13 for additional information related to these segments.

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

Revenue Recognition

Sales are recognized when control of promised goods or services are transferred to customers in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. Control is transferred when the customer has the ability to direct the use of and obtain benefits from the goods or services. The majority of the Company’s sales agreements contain performance obligations satisfied at a point in time when control is transferred to the customer. Sales recognized over time are generally accounted for using an input measure to determine progress completed at the end of the period. Sales for service contracts generally are recognized as the services are provided. For agreements with multiple performance obligations, judgment is required to determine whether performance obligations specified in these agreements are distinct and should be accounted for as separate revenue transactions for recognition purposes. In these types of agreements, we generally allocate sales price to each distinct obligation based on the price of each item sold in separate transactions.

Payment terms vary by the type and location of the customer and the products or services offered. Generally, the time between when revenue is recognized and payment is due is not significant. Eaton does not evaluate whether the selling price includes a financing interest component for contracts that are less than a year. Sales, value add, and other taxes collected concurrent with revenue are excluded from sales. Shipping and handling costs are treated as fulfillment costs and are included in Cost of products sold.

Eaton records reductions to sales for returns, and 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. Returns are estimated at the time of the sale primarily based on historical experience and recorded gross on the Consolidated Balance Sheet. See Note 3 for additional information.

Adoption of New Accounting Standards

Eaton adopted Accounting Standard Update 2014-09, Revenue from Contracts with Customers, at the start of the first quarter of 2018 using the modified retrospective approach and recorded a cumulative effect adjustment to retained earnings based on the current terms and conditions for open contracts as of January 1, 2018. The adoption of the standard did not have a material impact on the Company’s Consolidated financial statements. The comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods.

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Consolidated Balance Sheet		Balance at December 31, 2017		Adjustments due to ASU 2014-09			Balance at January 1, 2018
Assets
	Accounts receivable - net	$	3,943	$	(99	)	$	3,844
	Prepaid expenses and other current assets	679		129			808
	Deferred income taxes	253		1			254
Liabilities and shareholders' equity
	Other current liabilities	$	1,872	$	33		$	1,905
	Eaton shareholders' equity	17,253		(2		)	17,251

Eaton adopted Accounting Standards Update 2016-16, Intra-Entity Transfers of Assets Other Than Inventory (ASU 2016-16), at the start of the first quarter of 2018. This accounting standard requires companies to recognize the income tax effects of intercompany sales and transfers of assets other than inventory in the period in which the transfer occurs. The previous accounting standard required companies to defer the income tax effects of intercompany transfers of assets by recording a prepaid tax, until such assets were sold to an outside party or otherwise recognized. ASU 2016-16 requires companies to write off any income tax amounts that had been deferred as prepaid taxes from past intercompany transactions, and record deferred tax balances for amounts that have not been recognized, through a cumulative-effect adjustment to retained earnings. Upon adoption, the Company recorded a cumulative-effect adjustment of $199 to reduce retained earnings.

Eaton adopted Accounting Standards Update 2017-07, Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost (ASU 2017-07), at the start of the first quarter of 2018. The new standard requires companies to present service costs consistent with other employee compensation costs on the income statement and separate from all other elements of pension costs. The retrospective adoption of this standard resulted in a reduction in selling and administrative expense with a corresponding decrease in Other income - net of $1 and $9 for the three months ended March 31, 2018 and 2017, respectively.

Recently Issued Accounting Pronouncement

In February 2016, the FASB issued Accounting Standards Update 2016-02, Leases (Topic 842), (ASU 2016-02). This accounting standard requires that a lessee recognize a lease asset and a lease liability on its balance sheet for all leases, including operating leases, with a term greater than 12 months. ASU 2016-02 will require additional disclosures in the notes to the consolidated financial statements and is effective for annual and interim reporting periods beginning after December 15, 2018. A project team has been formed to evaluate and implement the new standard. The project team is working to gather the data required to account for leases under the new standard, and validating the functionality of third-party lease accounting software. In addition, the Company is in the process of identifying and implementing the appropriate changes to business processes and controls to support recognition and disclosure under the new standard. Eaton plans to adopt the standard as of the first quarter of 2019. Eaton is evaluating the impact of ASU 2016-02 and an estimate of the impact to the consolidated financial statements cannot be made at this time.

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Note 2. ACQUISITION INTEGRATION CHARGES

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

	Three months ended March 31
	2018		2017
Electrical Products	$	—	$	1
Total acquisition integration charges before income taxes	—		1
Income taxes	—		—
Total after income taxes	$	—	$	1
Per ordinary share - diluted	$	—	$	—

Business segment acquisition integration charges in 2017 related to the integration of Ephesus Lighting, Inc. (Ephesus), which was acquired in 2015. The charges associated with Ephesus were included in Selling and administrative expense. In Business Segment Information, the charges reduced Operating profit of the related business segment. See Note 13 for additional information about business segments.

Note 3. REVENUE RECOGNITION

Sales are recognized when obligations under the terms of the contract are satisfied and control of promised goods or services have transferred to our customers. Sales are measured at the amount of consideration the Company expects to be paid in exchange for these products or services.

The majority of the Company’s sales agreements contain performance obligations satisfied at a point in time when title and risk and rewards of ownership have transferred to the customer. Sales recognized over time are less than 5% of Eaton’s Consolidated Net Sales. Sales recognized over time are generally accounted for using an input measure to determine progress completed at the end of the period. Sales for service contracts generally are recognized as the services are provided. For agreements with multiple performance obligations, judgment is required to determine whether performance obligations specified in these agreements are distinct and should be accounted for as separate revenue transactions for recognition purposes. In these types of agreements, we generally allocate sales price to each distinct obligation based on the price of each item sold in separate transactions.

Due to the nature of the work required to be performed for obligations recognized over time, Eaton estimates total costs by contract. The estimate of total costs are subject to judgment. Estimated amounts are included in the recognized sales price to the extent it is not probable that a significant reversal of cumulative sales will occur. Additionally, contracts can be modified to account for changes in contract specifications, requirements or sale price. The effect of a contract modification on the sales price or adjustments to the measure of completion under the input method are recognized as adjustments to revenue on a cumulative catch-up basis.

Payment terms vary by the type and location of the customer and the products or services offered. Generally, the time between when revenue is recognized and when payment is due is not significant. Eaton does not evaluate whether the selling price includes a financing interest component for contracts that are less than a year. Sales, value add, and other taxes collected concurrent with revenue are excluded from sales. Shipping and handling costs are treated as fulfillment costs and are included in Cost of products sold.

Eaton records reductions to sales for returns, and 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. Returns are estimated at the time of the sale primarily based on historical experience and are recorded gross on the Condensed Consolidated Balance Sheet.

Sales commissions are expensed when the amortization period is less than a year and are generally not capitalized as they are typically earned at the completion of the contract when the customer is invoiced or when the customer pays Eaton.

Sales of products and services varies by segment and are discussed in Note 15 of Eaton’s 2017 Form 10-K and in Note 13.

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In the Electrical Products segment, sales contracts are primarily for electrical components, industrial components, residential products, single phase power quality, emergency lighting, fire detection, wiring devices, structural support systems, circuit protection, and lighting products. These sales contracts are primarily based on a customer’s purchase order followed by our order acknowledgement, and may also include a master supply or distributor agreement. In this segment, performance obligations are generally satisfied at a point in time either when we ship the product from our facility, or when it arrives at the customer’s facility.

In the Electrical Systems and Services segment, sales contracts are primarily for 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 majority of the sales contracts in this segment contain performance obligations satisfied at a point in time either when we ship the product from our facility, or when it arrives at the customer’s facility; however, certain power distribution and power quality services are recognized over time.

Many of the products and services in power distribution and power quality services meet the definition of continuous transfer of control to customers and are recognized over time. These products are engineered to a customer’s design specifications, have no alternative use to Eaton, and are controlled by the customer as evidenced by the customer’s contractual ownership of the work in process or our right to payment for work performed to date plus a reasonable margin. As control is transferring over time, sales are recognized based on the extent of progress towards completion of the obligation. Eaton generally uses an input method to determine the progress completed and sales are recorded proportionally as costs are incurred. Incurred cost represent work performed, which corresponds with, and thereby best depicts, the transfer of control to the customer.

In the Hydraulics segment, sales contracts are primarily for hydraulic components and systems for industrial and mobile equipment. These sales contracts are primarily based on a customer’s purchase order. In this segment, performance obligations are generally satisfied at a point in time when we ship the product from our facility.

In the Aerospace segment, sales contracts are primarily for aerospace fuel, hydraulics, and pneumatic systems for commercial and military use. These sales contracts are primarily based on a customer’s purchase order, and frequently covered by terms and conditions included in a long-term agreement. In this segment, performance obligations are generally satisfied at a point in time either when we ship the product from our facility, or when it arrives at the customer’s facility. Our military contracts are primarily fixed-price contracts that are not subject to performance-based payments or progress payments from the customer.

In the Vehicle segment, sales contracts are primarily for drivetrains, powertrain systems and critical components that reduce emissions and improve fuel economy, stability, performance, and safety of cars, light trucks and commercial vehicles. These sales contracts are primarily based on a customer’s purchase order or a blanket purchase order subject to firm releases, frequently covered by terms and conditions included in a master supply agreement. In this segment, performance obligations are generally satisfied at a point in time either when we ship the product from our facility, or when it arrives at the customer’s facility.

In the eMobility segment, sales contracts are primarily for electronic and mechanical components and systems that improves the power management and performance of both on-road and off-road vehicles. These sales contracts are primarily based on a customer’s purchase order. In this segment, performance obligations are generally satisfied at a point in time either when we ship the product from our facility, or when it arrives at the customer’s facility.

In limited circumstances, primarily in the Electrical and Vehicle segments, Eaton sells separately-priced warranties that extend the warranty coverage beyond the standard coverage offered on specific products. Sales for these separately-priced warranties are recorded based on their stand-alone selling price and are recognized as revenue over the length of the warranty period.

9

The Company’s six operating segments and the following tables disaggregate sales by lines of businesses, geographic destination, market channel or end market.

Net sales	United States		Rest of world		Total
Electrical Products	$	960	$	772	$	1,732
Electrical Systems and Services	894		487		1,381
Hydraulics	297		413		710
	Original Equipment Manufacturers		Aftermarket, Distribution and End User
Aerospace	$	264	$	194	458
	Commercial		Passenger and Light Duty
Vehicle	$	430	$	463	893
eMobility					77
Total					$	5,251

The timing of revenue recognition, billings and cash collections results in billed accounts receivable, unbilled receivables (revenue recognized exceeds amount billed to the customer), and deferred revenue (advance payments and billings in excess of revenue recognized). Accounts receivables from customers were $3,520 and $3,399 at March 31, 2018 and December 31, 2017, respectively. Amounts are billed as work progresses in accordance with agreed-upon contractual terms, either at periodic intervals or upon achievement of contractual milestones. These assets and liabilities are reported on the Condensed Consolidated Balance Sheets on a contract-by-contract basis at the end of each reporting period. Unbilled receivables were $129 and $117 at March 31, 2018 and January 1, 2018, respectively, and are recorded in Prepaid expenses and other current assets. The increase in the unbilled receivables was primarily due to revenue recognized and not yet billed, partially offset by billings to customers during the quarter.

Changes in the deferred revenue liabilities are as follows:

	Deferred Revenue
Balance at January 1, 2018	$	227
Customer deposits and billings	232
Revenue recognized in the period	(209		)
Translation	1
Balance at March 31, 2018	$	251

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 releases by customers. In measuring backlog of unsatisfied or partially satisfied obligations, only the amount of orders to which customers are firmly committed are included. Using this criterion, total backlog at March 31, 2018 was approximately $5.2 billion. Eaton expects to recognize approximately 88% of this backlog in the next twelve months and the rest thereafter.

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Impact of new accounting standard

In accordance with the new revenue accounting requirements, the impact of the adoption on the financial statement line items within the accompanying financial statements was as follows:

	Three months ended March 31, 2018
Consolidated Statements of Income	As Reported		Adjustment			Balances without Adoption of ASC 606
Net sales	$	5,251	$	(7	)	$	5,244
Cost of products sold	3,573		(4		)	3,569
Income before income taxes	565		(3		)	562
Income tax expense	78		(1		)	77
Net income	487		(2		)	485
Net income attributable to Eaton ordinary shareholders	$	488	$	(2	)	$	486

	March 31, 2018
Condensed Consolidated Balance Sheets	As Reported		Adjustment			Balances without Adoption of ASC 606
Assets
Accounts receivable - net	$	4,005	$	107		$	4,112
Inventory	2,745		3			2,748
Prepaid expenses and other current assets	552		(139		)	413
Deferred income taxes	356		(1		)	355
Liabilities
Other current liabilities	$	1,861	$	(30	)	$	1,831

Note 4. RESTRUCTURING CHARGES

During 2015, Eaton announced its commitment to undertake actions to reduce its cost structure in all business segments and at corporate. The multi-year initiative concluded at the end of 2017.

A summary of liabilities related to workforce reductions, plant closings and other associated costs announced as part of this program follows:

	Workforce reductions			Plant closings and other			Total
Balance at December 31, 2016	$	113		$	1		$	114
Liability recognized	57			59			116
Payments	(102		)	(39		)	(141		)
Other adjustments	(1		)	(16		)	(17		)
Balance at December 31, 2017	67			5			72
Payments	(13		)	(3		)	(16		)
Other adjustments	(8		)	—			(8		)
Balance at March 31, 2018	$	46		$	2		$	48

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Note 5. GOODWILL

Change in the carrying amount of goodwill by segment follows:

	December 31, 2017		Translation		March 31, 2018
Electrical Products	$	6,678	$	77	$	6,755
Electrical Systems and Services	4,311		42		4,353
Hydraulics	1,257		5		1,262
Aerospace	947		4		951
Vehicle	294		1		295
eMobility	81		1		82
Total	$	13,568	$	130	$	13,698

Eaton re-segmented certain reportable operating segments due to a reorganization of the Company's businesses. The new reportable business segment is eMobility (which includes certain legacy Electrical Products and Vehicle product lines). The Company used the relative fair value method to reallocate goodwill to the associated reporting units.

Note 6.    RETIREMENT BENEFITS PLANS

The components of retirement benefits expense follow:

	United States pension benefit expense						Non-United States pension benefit expense						Other postretirement benefits expense
	Three months ended March 31
	2018			2017			2018			2017			2018			2017
Service cost	$	25		$	24		$	16		$	17		$	1		$	1
Interest cost	30			31			14			13			3			3
Expected return on plan assets	(63		)	(61		)	(27		)	(23		)	(1		)	(1		)
Amortization	24			20			10			13			(3		)	(3		)
	16			14			13			20			—			—
Settlements	14			17			—			—			—			—
Total expense	$	30		$	31		$	13		$	20		$	—		$	—

The components of retirement benefits expense other than service costs are included in Other income - net.

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Note 7. LEGAL CONTINGENCIES

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

In December 2011, Pepsi-Cola Metropolitan Bottling Company, Inc. (“Pepsi”) filed an action against (a) Cooper Industries, LLC, Cooper Industries, Ltd., Cooper Holdings, Ltd., Cooper US, Inc., and Cooper Industries plc (collectively, “Cooper”), (b) M&F Worldwide Corp., Mafco Worldwide Corp., Mafco Consolidated Group LLC, and PCT International Holdings, Inc. (collectively, “Mafco”), and (c) the Pneumo Abex Asbestos Claims Settlement Trust (the “Trust”) in Texas state court. Pepsi alleged that it was harmed by a 2011 settlement agreement (“2011 Settlement”) among Cooper, Mafco, and Pneumo Abex, LLC (“Pneumo,” which prior to the 2011 Settlement was a Mafco subsidiary), which settlement resolved litigation that Pneumo had previously brought against Cooper involving, among other things, a guaranty related to Pneumo’s friction products business. In November 2015, after a Texas court ruled that Pepsi's claims should be heard in arbitration, Pepsi filed a demand for arbitration against Cooper, Mafco, the Trust, and Pneumo. Pepsi subsequently dropped claims against all parties except Cooper. An arbitration under the auspices of the American Arbitration Association commenced in October 2017. Pepsi’s experts have opined, among other things, that the value contributed to the Trust for a release of the guaranty was approximately $440 below reasonably equivalent value, and that an inability of Pneumo to satisfy future liabilities may result in plaintiffs suing Pepsi under various theories. Cooper submitted various expert reports and, among other things, Cooper’s experts have opined that Pepsi has no basis to seek any damages and that Cooper paid reasonably equivalent value for the release of its indemnity obligations under the guaranty. The arbitration proceedings closed in December 2017. The parties are awaiting the issuance of a decision. The Company believes that the claims of Pepsi are without merit, and that the ultimate resolution of this matter will not have a material impact on the Company’s consolidated financial statements.

Note 8. INCOME TAXES

The effective income tax rate for the first quarter of 2018 was expense of 13.8% compared to expense of 7.0% for the first quarter of 2017. The increase in the effective tax rate in the first quarter of 2018 was due to the impact of the U.S. Tax Cuts and Jobs Act (“TCJA”) and the impact of realization of a foreign deferred tax asset in the first quarter of 2017.

The TCJA was enacted on December 22, 2017 and the Company recorded provisional tax amounts in the fourth quarter of 2017 for the remeasurement of deferred tax balances, including valuation allowances related to the realization of deferred tax assets, and the one-time transition tax. The Company continues to analyze aspects of the TCJA, including potential impact to the provisional amounts recorded for the remeasurement of deferred tax balances and related valuation allowances, and the one-time transition tax. The Company did not record any adjustments to the 2017 provisional tax amounts in the first quarter of 2018.

13

Note 9. EQUITY

During the first quarter of 2018 and 2017, 3.7 million and 3.6 million ordinary shares, respectively, were repurchased under the 2016 Program in the open market at a total cost of $300 and $255, respectively.

The changes in Shareholders’ equity follow:

	Eaton shareholders’ equity			Noncontrolling interests			Total equity
Balance at December 31, 2017	$	17,253		$	37		$	17,290
Cumulative-effect adjustment upon adoption of ASU 2014-09	(2		)	—			(2		)
Cumulative-effect adjustment upon adoption of ASU 2016-16	(199		)	—			(199		)
Net income (loss)	488			(1		)	487
Other comprehensive income	296			—			296
Cash dividends paid and accrued	(290		)	—			(290		)
Issuance of shares under equity-based compensation plans - net	17			—			17
Repurchase of shares	(300		)	—			(300		)
Changes in noncontrolling interest - net	—			2			2
Balance at March 31, 2018	$	17,263		$	38		$	17,301

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, 2017	$	(2,255	)	$	(1,139	)	$	(10	)	$	(3,404	)
Other comprehensive (loss) income    before reclassifications	257			(12		)	10			255
Amounts reclassified from Accumulated other    comprehensive loss (income)	—			38			3			41
Net current-period Other comprehensive    income (loss)	257			26			13			296
Balance at March 31, 2018	$	(1,998	)	$	(1,113	)	$	3		$	(3,108	)

The reclassifications out of Accumulated other comprehensive loss follow:

	Three months ended March 31, 2018				Consolidated statements of income classification
Amortization of defined benefit pensions and other postretirement benefits items
Actuarial loss and prior service cost	$	(45	)	1
Tax benefit	7
Total, net of tax	(38		)
Gains and (losses) on cash flow hedges
Currency exchange contracts	(4		)		Cost of products sold
Tax benefit	1
Total, net of tax	(3		)
Total reclassifications for the period	$	(41	)

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

14

Net Income Per Share Attributable to Eaton Ordinary Shareholders

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

	Three months ended March 31
(Shares in millions)	2018		2017
Net income attributable to Eaton ordinary shareholders	$	488	$	434
Weighted-average number of ordinary shares outstanding - diluted	441.7		451.0
Less dilutive effect of equity-based compensation	2.9		2.2
Weighted-average number of ordinary shares outstanding - basic	438.8		448.8
Net income per share attributable to Eaton ordinary shareholders
Diluted	$	1.10	$	0.96
Basic	1.11		0.97

For the first quarter of 2018 and 2017, 0.1 million and 1.2 million stock options, respectively, were excluded from the calculation of diluted net income per share attributable to Eaton ordinary shareholders because the exercise price of the options exceeded the average market price of the ordinary shares during the period and their effect, accordingly, would have been antidilutive.

Note 10. FAIR VALUE MEASUREMENTS

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

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

	Total			Level 1		Level 2			Level 3
March 31, 2018
Cash	$	317		$	317	$	—		$	—
Short-term investments	510			510		—			—
Net derivative contracts	(13		)	—		(13		)	—
December 31, 2017
Cash	$	561		$	561	$	—		$	—
Short-term investments	534			534		—			—
Net derivative contracts	36			—		36			—

Eaton values its financial instruments using an industry standard market approach, in which prices and other relevant information is generated by market transactions involving identical or comparable assets or liabilities. No financial instruments were measured using unobservable inputs.

Other Fair Value Measurements

Long-term debt and the current portion of long-term debt had a carrying value of $7,692 and fair value of $7,790 at March 31, 2018 compared to $7,745 and $8,048, respectively, at December 31, 2017. The fair value of Eaton's debt instruments were estimated using prevailing market interest rates on debt with similar creditworthiness, terms and maturities, and are considered a Level 2 fair value measurement.

15

Note 11. DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES

In the normal course of business, Eaton is exposed to certain risks related to fluctuations in interest rates, currency exchange rates and commodity prices. The Company uses various derivative and non-derivative financial instruments, primarily interest rate swaps, currency forward exchange contracts, currency swaps and, to a lesser extent, commodity contracts, to manage risks from these market fluctuations. The instruments used by Eaton are straightforward, non-leveraged instruments. The counterparties to these instruments are financial institutions with strong credit ratings. Eaton maintains control over the size of positions entered into with any one counterparty and regularly monitors the credit rating of these institutions. Such instruments are not purchased and sold for trading purposes.

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

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

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

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

The gain or loss from a derivative financial instrument designated as a hedge that is effective is classified in the same line of the Consolidated Statements of Income as the offsetting loss or gain on the hedged item. The change in fair value of a derivative financial instrument that is not effective as a hedge is immediately recognized in income. The cash flows resulting from these financial instruments are classified in operating activities on the Condensed Consolidated Statements of Cash Flows.

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

Eaton uses certain of its debt denominated in foreign currency to hedge portions of its net investments in foreign operations against foreign currency exposure (net investment hedges). Foreign currency denominated debt designated as non-derivative net investment hedging instruments on an after-tax basis was $94 at March 31, 2018 and $88 at December 31, 2017, and designated on a pre-tax basis was $670 at March 31, 2018 and $652 at December 31, 2017.

16

Derivative Financial Statement Impacts

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

	Notional amount		Other  current assets		Other noncurrent assets		Other current liabilities		Other noncurrent liabilities		Type of hedge	Term
March 31, 2018
Derivatives designated as hedges
Fixed-to-floating interest rate  swaps	$	2,965	$	—	$	21	$	2	$	37	Fair value	2 months to 17 years
Currency exchange contracts	990		9		13		15		1		Cash flow	1 to 36 months
Total			$	9	$	34	$	17	$	38
Derivatives not designated as  hedges
Currency exchange contracts	$	3,543	$	19			$	20				1 to 12 months
Commodity contracts	17		—				—					1 to 12 months
Total			$	19			$	20
December 31, 2017
Derivatives designated as hedges
Fixed-to-floating interest rate  swaps	$	2,965	$	1	$	41	$	—	$	17	Fair value	6 months to 17 years
Currency exchange contracts	924		7		7		22		2		Cash flow	1 to 36 months
Total			$	8	$	48	$	22	$	19
Derivatives not designated as  hedges
Currency exchange contracts	$	3,719	$	39			$	19				1 to 12 months
Commodity contracts	13		1				—					1 to 12 months
Total			$	40			$	19

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.

17

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

	Gain (loss) recognized in other comprehensive (loss) income					Location of gain (loss) reclassified from Accumulated other comprehensive loss	Gain (loss) reclassified from Accumulated other comprehensive loss
	Three months ended March 31						Three months ended March 31
	2018		2017				2018			2017
Derivatives designated as    cash flow hedges
Currency exchange contracts	$	13	$	(1	)	Cost of products sold	$	(4	)	$	(4	)
Total	$	13	$	(1	)		$	(4	)	$	(4	)

Amounts recognized in net income follow:

	Three months ended March 31
	2018			2017
Derivatives designated as fair value hedges
Fixed-to-floating interest rate swaps	$	(43	)	$	(11	)
Related long-term debt converted to floating interest    rates by interest rate swaps	43			11
	$	—		$	—

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

Note 12. INVENTORY

Inventory is carried at lower of cost or net realizable value. The components of inventory follow:

	March 31, 2018		December 31, 2017
Raw materials	$	1,019	$	953
Work-in-process	523		471
Finished goods	1,203		1,196
Total inventory	$	2,745	$	2,620

18

Note 13. BUSINESS SEGMENT INFORMATION

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

During the first quarter of 2018, Eaton re-segmented certain reportable operating segments due to a reorganization of the Company's businesses. The new reportable business segment is eMobility (which includes certain legacy Electrical Products and Vehicle product lines). 

The eMobility segment designs, manufactures, markets, and supplies electrical and electronic components and systems that improve the power management and performance of both on-road and off-road vehicles. Products include high voltage inverters, converters, fuses, onboard chargers, circuit protection units, vehicle controls, power distribution, fuel tank isolation valves, and commercial vehicle hybrid systems. The principal markets for the eMobility segment are original equipment manufacturers and aftermarket customers of passenger cars, commercial vehicles, and construction, agriculture, and mining equipment.

Eaton’s operating segments are Electrical Products, Electrical Systems and Services, Hydraulics, Aerospace, Vehicle, and eMobility. Operating profit includes the operating profit from intersegment sales. For additional information regarding Eaton’s business segments, see Note 15 to the Consolidated Financial Statements contained in the 2017 Form 10-K.

	Three months ended March 31
	2018			2017
Net sales
Electrical Products	$	1,732		$	1,651
Electrical Systems and Services	1,381			1,333
Hydraulics	710			587
Aerospace	458			428
Vehicle	893			786
eMobility	77			63
Total net sales	$	5,251		$	4,848
Segment operating profit
Electrical Products	$	307		$	286
Electrical Systems and Services	167			155
Hydraulics	90			60
Aerospace	89			79
Vehicle	132			108
eMobility	11			11
Total segment operating profit	796			699
Corporate
Amortization of intangible assets	(98		)	(94		)
Interest expense - net	(70		)	(61		)
Pension and other postretirement benefits expense	(2		)	(11		)
Other corporate expense - net	(61		)	(66		)
Income before income taxes	565			467
Income tax expense	78			33
Net income	487			434
Less net loss for noncontrolling interests	1			—
Net income attributable to Eaton ordinary shareholders	$	488		$	434

19

New Business Segments - Results of Operations

For the reportable segments that were re-segmented, previously reported segment financial information has been updated for all periods reported in 2016 and 2017. The re-segmentation did not impact previously reported consolidated results of operations.

Electrical Products

	Year ended December 31, 2017			Quarter ended in 2017												Year ended December 31, 2016			Quarter ended in 2016
				Dec. 31			Sept. 30			June 30			Mar. 31						Dec. 31			Sept. 30			June 30			Mar. 31
Net sales	$	6,917		$	1,750		$	1,785		$	1,731		$	1,651		$	6,703		$	1,665		$	1,705		$	1,717		$	1,616
Operating profit	$	1,233		$	318		$	330		$	299		$	286		$	1,186		$	305		$	317		$	304		$	260
Operating margin	17.8		%	18.2		%	18.5		%	17.3		%	17.3		%	17.7		%	18.3		%	18.6		%	17.7		%	16.1		%
Acquisition integration charges	$	4		$	1		$	1		$	1		$	1		$	3		$	1		$	1		$	1		$	—
Before acquisition integration    charges
Operating profit	$	1,237		$	319		$	331		$	300		$	287		$	1,189		$	306		$	318		$	305		$	260
Operating margin	17.9		%	18.2		%	18.5		%	17.3		%	17.4		%	17.7		%	18.4		%	18.7		%	17.8		%	16.1		%

Vehicle

	Year ended December 31, 2017			Quarter ended in 2017												Year ended December 31, 2016			Quarter ended in 2016
				Dec. 31			Sept. 30			June 30			Mar. 31						Dec. 31			Sept. 30			June 30			Mar. 31
Net sales	$	3,326		$	837		$	858		$	845		$	786		$	3,141		$	739		$	784		$	825		$	793
Operating profit	$	541		$	142		$	150		$	141		$	108		$	471		$	97		$	122		$	135		$	117
Operating margin	16.3		%	17.0		%	17.5		%	16.7		%	13.7		%	15.0		%	13.1		%	15.6		%	16.4		%	14.8		%

eMobility

	Year ended December 31, 2017			Quarter ended in 2017												Year ended December 31, 2016			Quarter ended in 2016
				Dec. 31			Sept. 30			June 30			Mar. 31						Dec. 31			Sept. 30			June 30			Mar. 31
Net sales	$	283		$	73		$	75		$	72		$	63		$	266		$	63		$	64		$	73		$	66
Operating profit	$	50		$	10		$	16		$	13		$	11		$	57		$	11		$	14		$	20		$	12
Operating margin	17.7		%	13.7		%	21.3		%	18.1		%	17.5		%	21.4		%	17.5		%	21.9		%	27.4		%	18.2		%

20

Note 14. CONDENSED CONSOLIDATING FINANCIAL STATEMENTS

The Registered Senior Notes issued by Eaton Corporation are registered under the Securities Act of 1933. Eaton and certain 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 Registered 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 6 of Eaton's 2017 Form 10-K for additional information related to the Registered 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.

During 2018 and 2017, 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.

21

CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME FOR THE THREE MONTHS ENDED MARCH 31, 2018
	Eaton Corporation plc			Eaton Corporation			Guarantors			Other subsidiaries			Consolidating adjustments			Total
Net sales	$	—		$	1,689		$	1,700		$	3,191		$	(1,329	)	$	5,251
Cost of products sold	—			1,352			1,236			2,310			(1,325		)	3,573
Selling and administrative expense	3			341			178			367			—			889
Research and development expense	—			39			41			76			—			156
Interest expense (income) - net	—			68			4			(1		)	(1		)	70
Other expense (income) - net	18			5			(9		)	(16		)	—			(2		)
Equity in loss (earnings) of    subsidiaries, net of tax	(514		)	(178		)	(829		)	(659		)	2,180			—
Intercompany expense (income) - net	5			(21		)	486			(470		)	—			—
Income (loss) before income taxes	488			83			593			1,584			(2,183		)	565
Income tax expense (benefit)	—			(6		)	(14		)	99			(1		)	78
Net income (loss)	488			89			607			1,485			(2,182		)	487
Less net loss (income) for    noncontrolling interests	—			—			—			1			—			1
Net income (loss) attributable to    Eaton ordinary shareholders	$	488		$	89		$	607		$	1,486		$	(2,182	)	$	488
Other comprehensive income (loss)	$	296		$	38		$	296		$	613		$	(947	)	$	296
Total comprehensive income   (loss) attributable to Eaton   ordinary shareholders	$	784		$	127		$	903		$	2,099		$	(3,129	)	$	784

CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME FOR THE THREE MONTHS ENDED MARCH 31, 2017
	Eaton Corporation plc			Eaton Corporation			Guarantors			Other subsidiaries			Consolidating adjustments			Total
Net sales	$	—		$	1,572		$	1,656		$	2,930		$	(1,310	)	$	4,848
Cost of products sold	—			1,251			1,228			2,140			(1,312		)	3,307
Selling and administrative expense	32			317			199			328			—			876
Research and development expense	—			54			49			40			—			143
Interest expense (income) - net	—			62			5			(5		)	(1		)	61
Other expense (income) - net	7			10			1			(24		)	—			(6		)
Equity in loss (earnings) of    subsidiaries, net of tax	(583		)	169			(790		)	(658		)	1,862			—
Intercompany expense (income) - net	110			(30		)	338			(418		)	—			—
Income (loss) before income taxes	434			(261		)	626			1,527			(1,859		)	467
Income tax expense (benefit)	—			(3		)	16			18			2			33
Net income (loss)	434			(258		)	610			1,509			(1,861		)	434
Less net loss (income) for    noncontrolling interests	—			—			—			(1		)	1			—
Net income (loss) attributable to    Eaton ordinary shareholders	$	434		$	(258	)	$	610		$	1,508		$	(1,860	)	$	434
Other comprehensive income (loss)	$	263		$	63		$	262		$	516		$	(841	)	$	263
Total comprehensive income    (loss) attributable to Eaton    ordinary shareholders	$	697		$	(195	)	$	872		$	2,024		$	(2,701	)	$	697

22

CONDENSED CONSOLIDATING BALANCE SHEETS MARCH 31, 2018
	Eaton Corporation plc		Eaton Corporation		Guarantors			Other subsidiaries		Consolidating adjustments			Total
Assets
Current assets
Cash	$	—	$	10	$	6		$	301	$	—		$	317
Short-term investments	—		—		—			510		—			510
Accounts receivable - net	—		453		1,407			2,145		—			4,005
Intercompany accounts    receivable	3		1,607		1,724			2,952		(6,286		)	—
Inventory	—		517		766			1,549		(87		)	2,745
Prepaid expenses and    other current assets	—		108		97			317		30			552
Total current assets	3		2,695		4,000			7,774		(6,343		)	8,129
Property, plant and    equipment - net	—		841		698			2,004		—			3,543
Other noncurrent assets
Goodwill	—		1,317		6,705			5,676		—			13,698
Other intangible assets	—		135		3,168			1,903		—			5,206
Deferred income taxes	—		360		3			298		(305		)	356
Investment in subsidiaries	15,651		9,742		54,848			23,602		(103,843		)	—
Intercompany loans receivable	3,122		3,235		5,313			64,992		(76,662		)	—
Other assets	—		741		166			829		—			1,736
Total assets	$	18,776	$	19,066	$	74,901		$	107,078	$	(187,153	)	$	32,668
Liabilities and    shareholders’ equity
Current liabilities
Short-term debt	$	—	$	90	$	—		$	95	$	—		$	185
Current portion of    long-term debt	—		844		2			1		—			847
Accounts payable	—		504		392			1,307		—			2,203
Intercompany accounts payable	6		1,388		3,243			1,649		(6,286		)	—
Accrued compensation	—		46		31			223		—			300
Other current liabilities	8		492		311			1,050		—			1,861
Total current liabilities	14		3,364		3,979			4,325		(6,286		)	5,396
Noncurrent liabilities
Long-term debt	—		5,841		995			9		—			6,845
Pension liabilities	—		333		88			804		—			1,225
Other postretirement    benefits liabilities	—		191		95			73		—			359
Deferred income taxes	—		—		605			257		(305		)	557
Intercompany loans payable	1,499		3,955		70,262			946		(76,662		)	—
Other noncurrent liabilities	—		330		270			385		—			985
Total noncurrent liabilities	1,499		10,650		72,315			2,474		(76,967		)	9,971
Shareholders’ equity
Eaton shareholders' equity	17,263		5,052		(1,393		)	100,241		(103,900		)	17,263
Noncontrolling interests	—		—		—			38		—			38
Total equity	17,263		5,052		(1,393		)	100,279		(103,900		)	17,301
Total liabilities and equity	$	18,776	$	19,066	$	74,901		$	107,078	$	(187,153	)	$	32,668

23

CONDENSED CONSOLIDATING BALANCE SHEETS DECEMBER 31, 2017
	Eaton Corporation plc		Eaton Corporation		Guarantors		Other subsidiaries		Consolidating adjustments			Total
Assets
Current assets
Cash	$	—	$	183	$	18	$	360	$	—		$	561
Short-term investments	—		—		—		534		—			534
Accounts receivable - net	—		482		1,376		2,085		—			3,943
Intercompany accounts    receivable	8		2,865		5,155		2,716		(10,744		)	—
Inventory	—		473		737		1,493		(83		)	2,620
Prepaid expenses and    other current assets	—		229		145		277		28			679
Total current assets	8		4,232		7,431		7,465		(10,799		)	8,337
Property, plant and    equipment - net	—		859		702		1,941		—			3,502
Other noncurrent assets
Goodwill	—		1,316		6,705		5,547		—			13,568
Other intangible assets	—		138		3,206		1,921		—			5,265
Deferred income taxes	—		356		6		215		(324		)	253
Investment in subsidiaries	15,045		9,503		75,379		39,848		(139,775		)	—
Intercompany loans receivable	3,122		7,105		2,909		61,427		(74,563		)	—
Other assets	—		748		166		784		—			1,698
Total assets	$	18,175	$	24,257	$	96,504	$	119,148	$	(225,461	)	$	32,623
Liabilities and    shareholders’ equity
Current liabilities
Short-term debt	$	—	$	—	$	—	$	6	$	—		$	6
Current portion of    long-term debt	—		542		35		1		—			578
Accounts payable	—		549		330		1,287		—			2,166
Intercompany accounts payable	4		4,917		4,418		1,405		(10,744		)	—
Accrued compensation	—		128		65		260		—			453
Other current liabilities	1		566		317		989		(1		)	1,872
Total current liabilities	5		6,702		5,165		3,948		(10,745		)	5,075
Noncurrent liabilities
Long-term debt	—		6,180		976		9		2			7,167
Pension liabilities	—		341		89		796		—			1,226
Other postretirement    benefits liabilities	—		192		96		74		—			362
Deferred income taxes	—		—		607		255		(324		)	538
Intercompany loans payable	917		3,808		68,685		1,153		(74,563		)	—
Other noncurrent liabilities	—		314		273		378		—			965
Total noncurrent liabilities	917		10,835		70,726		2,665		(74,885		)	10,258
Shareholders’ equity
Eaton shareholders' equity	17,253		6,720		20,613		112,498		(139,831		)	17,253
Noncontrolling interests	—		—		—		37		—			37
Total equity	17,253		6,720		20,613		112,535		(139,831		)	17,290
Total liabilities and equity	$	18,175	$	24,257	$	96,504	$	119,148	$	(225,461	)	$	32,623

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CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS FOR THE THREE MONTHS ENDED MARCH 31, 2018
	Eaton Corporation plc			Eaton Corporation			Guarantors			Other subsidiaries			Consolidating adjustments			Total
Net cash provided by (used in)    operating activities	$	2		$	(66	)	$	82		$	321		$	—		$	339
Investing activities
Capital expenditures for property,    plant and equipment	—			(23		)	(24		)	(84		)	—			(131		)
Sales (purchases) of short-term investments - net	—			—			—			31			—			31
Investments in affiliates	—			(36		)	—			—			36			—
Loans to affiliates	—			—			(486		)	(1,177		)	1,663			—
Repayments of loans from affiliates	—			16			886			1,299			(2,201		)	—
Other - net	—			(15		)	(4		)	(18		)	—			(37		)
Net cash provided by (used in) investing activities	—			(58		)	372			51			(502		)	(137		)
Financing activities
Proceeds from borrowings	—			90			—			89			—			179
Payments on borrowings	—			—			(33		)	—			—			(33		)
Proceeds from borrowings from    affiliates	585			1,050			28			—			(1,663		)	—
Payments on borrowings from    affiliates	(22		)	(1,409		)	(16		)	(754		)	2,201			—
Capital contributions from affiliates	—			—			—			36			(36		)	—
Other intercompany financing    activities	—			237			(441		)	204			—			—
Cash dividends paid	(284		)	—			—			—			—			(284		)
Exercise of employee stock options	19			—			—			—			—			19
Repurchase of shares	(300		)	—			—			—			—			(300		)
Employee taxes paid from shares withheld	—			(16		)	(4		)	(3		)	—			(23		)
Other - net	—			(1		)	—			—			—			(1		)
Net cash provided by (used in)    financing activities	(2		)	(49		)	(466		)	(428		)	502			(443		)
Effect of currency on cash	—			—			—			(3		)	—			(3		)
Total increase (decrease) in cash	—			(173		)	(12		)	(59		)	—			(244		)
Cash at the beginning of the period	—			183			18			360			—			561
Cash at the end of the period	$	—		$	10		$	6		$	301		$	—		$	317

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CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS FOR THE THREE MONTHS ENDED MARCH 31, 2017
	Eaton Corporation plc			Eaton Corporation			Guarantors			Other subsidiaries			Consolidating adjustments			Total
Net cash provided by (used in)    operating activities	$	611		$	430		$	733		$	196		$	(1,507	)	$	463
Investing activities
Capital expenditures for property,    plant and equipment	—			(20		)	(26		)	(70		)	—			(116		)
Sales (purchases) of short-term investments - net	—			—			—			(93		)	—			(93		)
Investments in affiliates	—			(1		)	—			—			1			—
Loans to affiliates	—			(6		)	(87		)	(2,348		)	2,441			—
Repayments of loans from affiliates	—			19			55			2,195			(2,269		)	—
Other - net	—			(11		)	2			(11		)	—			(20		)
Net cash provided by (used in)    investing activities	—			(19		)	(56		)	(327		)	173			(229		)
Financing activities
Proceeds from borrowings	—			194			—			—			—			194
Payments on borrowings	—			(250		)	—			(4		)	—			(254		)
Proceeds from borrowings from    affiliates	668			1,107			662			4			(2,441		)	—
Payments on borrowings from    affiliates	(800		)	(1,435		)	(17		)	(17		)	2,269			—
Capital contributions from affiliates	—			—			—			1			(1		)	—
Other intercompany financing activities	—			(63		)	(519		)	582			—			—
Cash dividends paid	(263		)	—			—			—			—			(263		)
Cash dividends paid to affiliates	—			—			(800		)	(707		)	1,507			—
Exercise of employee stock options	38			—			—			—			—			38
Repurchase of shares	(255		)	—			—			—			—			(255		)
Employee taxes paid from shares withheld	—			(13		)	(4		)	(3		)	—			(20		)
Other - net	—			—			(1		)	(2		)	—			(3		)
Net cash provided by (used in)    financing activities	(612		)	(460		)	(679		)	(146		)	1,334			(563		)
Effect of currency on cash	—			—			—			8			—			8
Total increase (decrease) in cash	(1		)	(49		)	(2		)	(269		)	—			(321		)
Cash at the beginning of the period	1			92			12			438			—			543
Cash at the end of the period	$	—		$	43		$	10		$	169		$	—		$	222

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

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

COMPANY OVERVIEW

Eaton Corporation plc (Eaton or the Company) is a power management company with 2017 net sales of $20.4 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 96,000 employees in 59 countries and sells products to customers in more than 175 countries.

Summary of Results of Operations

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

	Three months ended March 31
	2018		2017
Net sales	$	5,251	$	4,848
Net income attributable to Eaton ordinary shareholders	488		434
Net income per share attributable to Eaton ordinary shareholders - diluted	$	1.10	$	0.96

During the first quarter of 2018, Eaton re-segmented certain reportable operating segments due to a reorganization of the Company's businesses. The new reportable business segment is eMobility (which includes certain legacy Electrical Products and Vehicle product lines). For those reportable segments that were re-segmented, previously reported segment financial information has been updated for 2017. For additional information regarding the re-segmentation, see Note 13 to the Condensed Consolidated Financial Statements. The re-segmentation did not impact previously reported consolidated results of operations. For additional information regarding Eaton’s business segments, see Note 15 to the Consolidated Financial Statements contained in the 2017 Form 10-K.

RESULTS OF OPERATIONS

Non-GAAP Financial Measures

The following discussion of Consolidated Financial Results and Business Segment Results of Operations includes certain non-GAAP financial measures. These financial measures include adjusted earnings, adjusted earnings per ordinary share, and operating profit before acquisition integration charges for each business segment as well as corporate, each of which differs from the most directly comparable measure calculated in accordance with generally accepted accounting principles (GAAP). A reconciliation of adjusted earnings and adjusted earnings per ordinary share to the most directly comparable GAAP measure is included in the table below. Operating profit before acquisition integration charges is reconciled in the discussion of the operating results of each business segment, and excludes acquisition integration expense related to integration of Ephesus Lighting, Inc. in 2017. Management believes that these financial measures are useful to investors because they exclude certain transactions, allowing investors to more easily compare Eaton’s financial performance period to period. Management uses this information in monitoring and evaluating the on-going performance of Eaton and each business segment. For additional information on acquisition integration charges, see Note 2 to the Condensed Consolidated Financial Statements.

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Consolidated Financial Results

	Three months ended March 31						Increase (decrease)
	2018			2017
Net sales	$	5,251		$	4,848		8	%
Gross profit	1,678			1,541			9	%
Percent of net sales	32.0		%	31.8		%
Income before income taxes	565			467			21	%
Net income	487			434			12	%
Less net loss for noncontrolling interests	1			—
Net income attributable to Eaton    ordinary shareholders	488			434			12	%
Excluding acquisition integration charges,   after-tax (Note 2)	—			1
Adjusted earnings	$	488		$	435		12	%
Net income per share attributable to Eaton ordinary shareholders - diluted	$	1.10		$	0.96		15	%
Excluding per share impact of acquisition    integration charges, after-tax (Note 2)	—			—
Adjusted earnings per ordinary share	$	1.10		$	0.96		15	%

Net Sales

Net sales increased 8% in the first quarter of 2018 compared to the first quarter of 2017 due to an increase of 6% in organic sales and an increase of 3% from the impact of positive currency translation, partially offset by a decrease of 1% from the sale of a business and a stake in a joint venture in the second half of 2017. The increase in organic sales in the first quarter of 2018 was primarily due to higher sales volumes in all business segments.

Gross Profit

Gross profit margin increased from 31.8% in the first quarter of 2017 to 32.0% in the first quarter of 2018. The increase in gross profit margin was primarily due to higher sales volumes and savings from restructuring actions.

Income Taxes

The effective income tax rate for the first quarter of 2018 was expense of 13.8% compared to expense of 7.0% for the first quarter of 2017. The increase in the effective tax rate in the first quarter of 2018 was due to the impact of the U.S. Tax Cuts and Jobs Act (“TCJA”) and the impact of realization of a foreign deferred tax asset in the first quarter of 2017.

Net Income

Net income attributable to Eaton ordinary shareholders of $488 in the first quarter of 2018 increased 12% compared to Net income attributable to Eaton ordinary shareholders of $434 in the first quarter of 2017. The increase in the first quarter of 2018 was primarily due to higher sales volumes and savings from restructuring actions, partially offset by a higher tax rate.

Net income per ordinary share increased to $1.10 in the first quarter of 2018 compared to $0.96 in the first quarter of 2017. The increase in the Net income per ordinary share in the first quarter of 2018was due to higher Net income attributable to Eaton ordinary shareholders and the Company's share repurchases over the past year.

Adjusted Earnings

Adjusted earnings of $488 in the first quarter of 2018 increased 12% compared to Adjusted earnings of $435 in the first quarter of 2017. The increase in Adjusted earnings in the first quarter of 2018 was primarily due to higher Net income attributable to Eaton ordinary shareholders.

Adjusted earnings per ordinary share increased to $1.10 in the first quarter of 2018 compared to $0.96 in the first quarter of 2017. The increase in Adjusted earnings per ordinary share in the first quarter of 2018 was due to higher Adjusted earnings and the impact of the Company's share repurchases over the past year.

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Business Segment Results of Operations

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

Electrical Products

	Three months ended March 31						Increase (decrease)
	2018			2017
Net sales	$	1,732		$	1,651		5	%
Operating profit	$	307		$	286		7	%
Operating margin	17.7		%	17.3		%
Acquisition integration charges	$	—		$	1
Before acquisition integration charges
Operating profit	$	307		$	287		7	%
Operating margin	17.7		%	17.4		%

Net sales increased 5% in the first quarter of 2018 compared to the first quarter of 2017 due to an increase of 4% from the impact of positive currency translation and an increase of 1% in organic sales. The increase in organic sales in the first quarter of 2018 was primarily driven by growth in products going into industrial applications, partially offset by weakness in North American lighting sales.

The operating margin increased from 17.3% in the first quarter of 2017 to 17.7% in the first quarter of 2018 primarily due to higher sales volumes and savings from restructuring actions.

The operating margin before acquisition integration charges increased from 17.4% in the first quarter of 2017 to 17.7% in the first quarter of 2018 primarily due to an increase in the operating margin.

Electrical Systems and Services

	Three months ended March 31						Increase (decrease)
	2018			2017
Net sales	$	1,381		$	1,333		4	%
Operating profit	$	167		$	155		8	%
Operating margin	12.1		%	11.6		%

Net sales increased 4% in the first quarter of 2018 compared to the first quarter of 2017 due to an increase of 2% in organic sales and an increase of 2% from the impact of positive currency translation, partially offset by a decrease of 1% from a sale of a stake in a joint venture in the fourth quarter of 2017. The increase in organic sales in the first quarter of 2018 was primarily due to strength in large industrial projects in the United States, oil and gas markets, and services in North America.

The operating margin increased from 11.6% in the first quarter of 2017 to 12.1% in the first quarter of 2018 primarily due to higher sales volumes and savings from restructuring actions.

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Hydraulics

	Three months ended March 31						Increase (decrease)
	2018			2017
Net sales	$	710		$	587		21	%
Operating profit	$	90		$	60		50	%
Operating margin	12.7		%	10.2		%

Net sales increased 21% in the first quarter of 2018 compared to the first quarter of 2017 due to an increase of 16% in organic sales and an increase of 5% from the impact of positive currency translation. The increase in organic sales in the first quarter of 2018 was due to strength in global mobile OEM markets and in distribution channels.

The operating margin increased from 10.2% in the first quarter of 2017 to 12.7% in the first quarter of 2018 primarily due to higher sales volumes, partially offset by investments in growth initiatives.

Aerospace

	Three months ended March 31						Increase (decrease)
	2018			2017
Net sales	$	458		$	428		7	%
Operating profit	$	89		$	79		13	%
Operating margin	19.4		%	18.5		%

Net sales increased 7% in the first quarter of 2018 compared to the first quarter of 2017 due to an increase of 6% in organic sales and an increase of 1% from the impact of positive currency translation. The increase in organic sales in the first quarter of 2018 was primarily due to higher sales to the aftermarket and the military OEM market.

The operating margin increased from 18.5% in the first quarter of 2017 to 19.4% in first quarter of 2018 primarily due to higher sales volumes and favorable product mix due to growth in the aftermarket.

Vehicle

	Three months ended March 31						Increase (decrease)
	2018			2017
Net sales	$	893		$	786		14	%
Operating profit	$	132		$	108		22	%
Operating margin	14.8		%	13.7		%

Net sales increased 14% in the first quarter of 2018 compared to the first quarter of 2017 due to an increase of 13% in organic sales and an increase of 3% from the impact of positive currency translation, partially offset by a decrease of 2% from the sale of a business in the third quarter of 2017. The increase in organic sales in the first quarter of 2018 was driven by growth in the Americas and Asia Pacific regions, with particular strength in the North American Class 8 truck market.

The operating margin increased from 13.7% in the first quarter of 2017 to 14.8% in the first quarter of 2018 primarily due to higher sales volumes, partially offset by higher restructuring costs.

30

eMobility

	Three months ended March 31						Increase (decrease)
	2018			2017
Net sales	$	77		$	63		22	%
Operating profit	$	11		$	11		—	%
Operating margin	14.3		%	17.5		%

Net sales increased 22% in the first quarter of 2018 compared to the first quarter of 2017 due to an increase of 19% in organic sales and an increase of 3% from the impact of positive currency translation. The increase in organic sales in the first quarter of 2018 was due to strength in North America.

The operating margin decreased from 17.5% in the first quarter of 2017 to 14.3% in the first quarter of 2018 primarily due to increased research and development costs.

Corporate Expense

	Three months ended March 31				Increase (decrease)
	2018		2017
Amortization of intangible assets	$	98	$	94	4	%
Interest expense - net	70		61		15	%
Pension and other postretirement    benefits expense	2		11		(82	)%
Other corporate expense - net	61		66		(8	)%
Total corporate expense	$	231	$	232	—	%

Total corporate expense was $231 in the first quarter of 2018 compared to corporate expense of $232 in the first quarter of 2017. The change in Total corporate expense for the first quarter of 2018 was primarily due to a decrease in Pension and other postretirement benefits expense as a result of favorable returns on plan assets during 2017 and the Company's contributions to the pension plans, offset by higher interest expense.

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 $2,000 commercial paper program, which is supported by credit facilities in the aggregate principal amount of $2,000. There were no borrowings outstanding under these revolving credit facilities at March 31, 2018. Over the course of a year, cash, short-term investments and short-term debt may fluctuate in order to manage global liquidity. Eaton believes it has the operating flexibility, cash flow, cash and short-term investment balances, and access to capital markets in excess of the liquidity necessary to meet future operating needs of the business as well as scheduled payments of long-term debt.

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

Sources and Uses of Cash

Operating Cash Flow

Net cash provided by operating activities was $339 in the first three months of 2018, a decrease of $124 in the source of cash compared to $463 in the first three months of 2017. The decrease in net cash provided by operating activities in the first three months of 2018 was driven by higher working capital balances compared to 2017, partially offset by lower pension contributions and higher net income.

31

Investing Cash Flow

Net cash used in investing activities was $137 in the first three months of 2018, a decrease in the use of cash of $92 compared to $229 in the first three months of 2017. The decrease in the use of cash was primarily driven by net sales of short-term investments of $31 in 2018 compared to net purchases of $93 in 2017.

Financing Cash Flow

Net cash used in financing activities was $443 in the first three months of 2018, a decrease of $120 in the use of cash compared to $563 in the first three months of 2017. The decrease in the use of cash was primarily due to a decrease of $221 in payments on borrowings which totaled $33 in 2018 and $254 in 2017. This was partially offset by an increase of $45 in share repurchases during the first three months of 2018 compared to the first three months of 2017.

FORWARD-LOOKING STATEMENTS

This Form 10-Q Report contains forward-looking statements concerning legal contingencies, 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 potential effects on our businesses from natural disasters; 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.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.

There have been no material changes in exposures to market risk since December 31, 2017.

ITEM 4. 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 Craig Arnold - 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, management concluded that Eaton’s disclosure controls and procedures were effective as of March 31, 2018.

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

During the first quarter of 2018, 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.

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PART II — OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS.

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

ITEM 1A. RISK FACTORS.

“Item 1A. Risk Factors” in Eaton's 2017 Form 10-K includes a discussion of the Company's risk factors. There have been no material changes from the risk factors described in the 2017 Form 10-K.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS.

(c) Issuer's Purchases of Equity Securities

During the first quarter of 2018, 3.7 million ordinary shares were repurchased in the open market at a total cost of $300 million. These shares were repurchased under the program approved by the Board on February 24, 2016. A summary of the shares repurchased in the first quarter of 2018 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	Approximate dollar value of shares that may yet be purchased under the plans or programs (in millions)
January	—	$	—	—	$	1,002
February	2,962,790	$	82.59	2,962,790	$	757
March	689,406	$	80.11	689,406	$	702
Total	3,652,196	$	82.12	3,652,196

ITEM 5. OTHER INFORMATION.

Disclosure Pursuant to Section 13r of the Exchange Act

Set forth below is a description of all matters reported by us pursuant to Section 219 of the Iran Threat Reduction and Syria Human Rights Act of 2012 and Section 13(r) of the Exchange Act. Concurrently with the filing of this Quarterly Report, we are filing a notice pursuant to Section 13(r) of the Exchange Act that such matters have been disclosed in this Quarterly Report.

During the first quarter, certain of our wholly-owned non-U.S. subsidiaries sold various electrical products to customers in Iran. We received total revenue of approximately 877,115 Euros and realized net profits of approximately 336,919 Euros from the sales (approximately $1,082,055 and $415,640 in whole U.S. dollars, respectively). One or more of our non-U.S. subsidiaries intend to continue doing business in Iran under General License H in compliance with U.S. economic sanctions and export control laws, though the Company has no assets or employees in Iran.

33

ITEM 6. EXHIBITS.

Eaton Corporation plc

First Quarter 2018 Report on Form 10-Q

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 8-K filed on May 1, 2017
4.1	Indenture dated as of November 20, 2012, among Turlock Corporation, the guarantors named therein and The Bank of New York Mellon Trust Company, N.A., as trustee (incorporated by reference to Exhibit 4.1 of Eaton Corporation plc's Form 8-K Current Report filed on November 26, 2012 (Commission File No. 333-182303))
4.2	Supplemental Indenture No. 1, dated as of November 30, 2012, among Eaton Corporation, the guarantors named therein and The Bank of New York Mellon Trust Company, N.A., as trustee (incorporated by reference to Exhibit 4.2 of the registrant's Form S-4 filed on September 6, 2013)
4.3	Supplemental Indenture No. 2, dated as of January 8, 2013, among Eaton Corporation, the guarantors named therein and The Bank of New York Mellon Trust Company, N.A., as trustee (incorporated by reference Exhibit 4.3 of the registrant's Form S-4 filed on September 6, 2013)
4.4	Supplemental Indenture No. 3, dated as of December 20, 2013, among Eaton Corporation, the guarantors named therein and The Bank of New York Mellon Trust Company, N.A., as trustee (incorporated by reference Exhibit 4.4 of the registrant's Form 10-K filed on February 28, 2018)
4.5	Supplemental Indenture No. 4, dated as of December 20, 2017 and effective as of January 1, 2018, among Eaton Corporation, the guarantors named therein and The Bank of New York Mellon Trust Company, N.A., as trustee (incorporated by reference Exhibit 4.5 of the registrant's Form 10-K filed on February 28, 2018)
4.6	Supplemental Indenture No. 5, dated as of February 16, 2018, among Eaton Corporation, the guarantors named therein and The Bank of New York Mellon Trust Company, N.A., as trustee (incorporated by reference Exhibit 4.6 of the registrant's Form 10-K filed on February 28, 2018)
4.7	Pursuant to Regulation S-K Item 601(b)(4), Eaton agrees to furnish to the SEC, upon request, a copy of the instruments defining the rights of holders of its long-term debt other than those set forth in Exhibits (4.1 - 4.6) hereto
12	Ratio of Earnings to Fixed Charges — Filed in conjunction with this Form 10-Q Report *
31.1	Certification of Principal Executive Officer (Pursuant to Rule 13a-14(a)) — Filed in conjunction with this Form 10-Q Report *
31.2	Certification of Principal Financial Officer (Pursuant to Rule 13a-14(a)) — Filed in conjunction with this Form 10-Q Report *
32.1	Certification of Principal Executive Officer (Pursuant to Rule 13a-14(b) as adopted pursuant to Section 906 of the Sarbanes-Oxley Act) — Filed in conjunction with this Form 10-Q Report *
32.2	Certification of Principal Financial Officer (Pursuant to Rule 13a-14(b) as adopted pursuant to Section 906 of the Sarbanes-Oxley Act) — Filed in conjunction with this Form 10-Q Report *
101.INS	XBRL Instance Document *
101.SCH	XBRL Taxonomy Extension Schema Document *
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document *
101.DEF	XBRL Taxonomy Extension Label Definition Document *
101.LAB	XBRL Taxonomy Extension Label Linkbase Document *
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document *

_______________________________

* Submitted electronically herewith.

Attached as Exhibit 101 to this report are the following formatted in XBRL (Extensible Business Reporting Language): (i) Consolidated Statements of Income for the three months ended March 31, 2018 and 2017, (ii) Consolidated Statements of Comprehensive Income for the three months ended March 31, 2018 and 2017, (iii) Condensed Consolidated Balance Sheets at March 31, 2018 and December 31, 2017, (iv) Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2018 and 2017 and (v) Notes to Condensed Consolidated Financial Statements for the three months ended March 31, 2018.

34

SIGNATURES

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

			EATON CORPORATION plc
			Registrant
Date:	May 1, 2018	By:	/s/ Richard H. Fearon
			Richard H. Fearon
			Principal Financial Officer
			(On behalf of the registrant and as Principal Financial Officer)

35

EX-12

Eaton Corporation plc

First Quarter 2018 Report on Form 10-Q

Item 6

Exhibit 12

Ratio of Earnings to Fixed Charges

	Three months ended March 31		Year ended December 31
(Millions of dollars)	2018		2017			2016			2015			2014			2013
Income from continuing operations before income taxes    and noncontrolling interests in consolidated subsidiaries	$	565	$	3,368		$	2,118		$	2,133		$	1,762		$	1,870
Adjustments
(Income) loss of equity investees	7		(1		)	(14		)	(11		)	(6		)	2
Distributed income of equity investees	—		7			9			9			4			77
Interest expensed	80		273			240			237			250			290
Amortization of debt issue costs	2		7			7			8			9			10
Estimated portion of rent expense representing interest	20		74			73			75			81			80
Amortization of capitalized interest	3		11			12			10			14			13
Adjusted income from continuing operations before    income taxes	$	677	$	3,739		$	2,445		$	2,461		$	2,114		$	2,342
Fixed charges
Interest expensed	$	80	$	273		$	240		$	237		$	250		$	290
Interest capitalized	4		11			12			13			13			11
Amortization of debt issue costs	2		7			7			8			9			10
Estimated portion of rent expense representing interest	20		74			73			75			81			80
Total fixed charges	$	106	$	365		$	332		$	333		$	353		$	391
Ratio of earnings to fixed charges	6.39		10.24			7.36			7.39			5.99			5.99

EX-31.1

Eaton Corporation plc

First Quarter 2018 Report on Form 10-Q

Item 6

Exhibit 31.1

Certification

I, Craig Arnold, certify that:

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

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

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

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

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

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

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

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

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

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

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

Date:	May 1, 2018	/s/ Craig Arnold
		Craig Arnold
		Principal Executive Officer

EX-31.2

Eaton Corporation plc

First Quarter 2018 Report on Form 10-Q

Item 6

Exhibit 31.2

Certification

I, Richard H. Fearon, certify that:

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

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

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

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

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

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

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

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

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

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

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

Date:	May 1, 2018	/s/ Richard H. Fearon
		Richard H. Fearon
		Principal Financial Officer

EX-32.1

Eaton Corporation plc

First Quarter 2018 Report on Form 10-Q

Item 6

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 Quarterly Report on Form 10-Q for the quarter ended March 31, 2018 (“10-Q Report”).

I hereby certify that, based on my knowledge, the 10-Q 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-Q Report fairly presents, in all material respects, the financial condition and results of operations of Eaton Corporation plc and its consolidated subsidiaries.

Date:	May 1, 2018	/s/ Craig Arnold
		Craig Arnold
		Principal Executive Officer

EX-32.2

Eaton Corporation plc

First Quarter 2018 Report on Form 10-Q

Item 6

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 Quarterly Report on Form 10-Q for the quarter ended March 31, 2018 (“10-Q Report”).

I hereby certify that, based on my knowledge, the 10-Q 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-Q Report fairly presents, in all material respects, the financial condition and results of operations of Eaton Corporation plc and its consolidated subsidiaries.

Date:	May 1, 2018	/s/ Richard H. Fearon
		Richard H. Fearon
		Principal Financial Officer

XML

Document and Entity Information shares in Millions	3 Months Ended
	Mar. 31, 2018 shares
Document and Entity Information [Abstract]
Entity Registrant Name	Eaton Corp plc
Trading Symbol	ETN
Entity Central Index Key	0001551182
Document Type	10-Q
Document Period End Date	Mar. 31, 2018
Amendment Flag	false
Document Fiscal Year Focus	2018
Document Fiscal Period Focus	Q1
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding (in shares)	437.3

XML

CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Millions, $ in Millions	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Income Statement [Abstract]
Net sales	$ 5,251	$ 4,848
Cost of products sold	3,573	3,307
Selling and administrative expense	889	876
Research and development expense	156	143
Interest expense - net	70	61
Other income - net	(2)	(6)
Income before income taxes	565	467
Income tax expense	78	33
Net income	487	434
Less net loss for noncontrolling interests	1	0
Net income attributable to Eaton ordinary shareholders	$ 488	$ 434
Net income per share attributable to Eaton ordinary shareholders
Diluted (usd per share)	$ 1.10	$ 0.96
Basic (usd per share)	$ 1.11	$ 0.97
Weighted-average number of ordinary shares outstanding
Diluted (shares)	441.7	451.0
Basic (shares)	438.8	448.8
Cash dividends declared per ordinary share (usd per share)	$ 0.66	$ 0.6

XML

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Statement of Comprehensive Income [Abstract]
Net income	$ 487	$ 434
Less net loss for noncontrolling interests	1	0
Net income attributable to Eaton ordinary shareholders	488	434
Other comprehensive income, net of tax
Currency translation and related hedging instruments	257	228
Pensions and other postretirement benefits	26	33
Cash flow hedges	13	2
Other comprehensive income attributable to Eaton ordinary shareholders	296	263
Total comprehensive income attributable to Eaton ordinary shareholders	$ 784	$ 697

XML

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions	Mar. 31, 2018	Dec. 31, 2017
Current assets
Cash	$ 317	$ 561
Short-term investments	510	534
Accounts receivable - net	4,005	3,943
Inventory	2,745	2,620
Prepaid expenses and other current assets	552	679
Total current assets	8,129	8,337
Land and buildings	2,531	2,491
Machinery and equipment	6,135	6,014
Gross property, plant and equipment	8,666	8,505
Accumulated depreciation	(5,123)	(5,003)
Net property, plant and equipment	3,543	3,502
Other noncurrent assets
Goodwill	13,698	13,568
Other intangible assets	5,206	5,265
Deferred income taxes	356	253
Other assets	1,736	1,698
Total assets	32,668	32,623
Current liabilities
Short-term debt	185	6
Current portion of long-term debt	847	578
Accounts payable	2,203	2,166
Accrued compensation	300	453
Other current liabilities	1,861	1,872
Total current liabilities	5,396	5,075
Noncurrent liabilities
Long-term debt	6,845	7,167
Pension liabilities	1,225	1,226
Other postretirement benefits liabilities	359	362
Deferred income taxes	557	538
Other noncurrent liabilities	985	965
Total noncurrent liabilities	9,971	10,258
Shareholders’ equity
Eaton shareholders’ equity	17,263	17,253
Noncontrolling interests	38	37
Total equity	17,301	17,290
Total liabilities and equity	$ 32,668	$ 32,623

XML

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Operating activities
Net income	$ 487	$ 434
Adjustments to reconcile to net cash provided by operating activities
Depreciation and amortization	230	225
Deferred income taxes	(12)	(37)
Pension and other postretirement benefits expense	43	51
Contributions to pension plans	(40)	(128)
Contributions to other postretirement benefits plans	(5)	(6)
Changes in working capital	(459)	(166)
Other - net	95	90
Net cash provided by operating activities	339	463
Investing activities
Capital expenditures for property, plant and equipment	(131)	(116)
Sales (purchases) of short-term investments - net	31	(93)
Other - net	(37)	(20)
Net cash used in investing activities	(137)	(229)
Financing activities
Proceeds from borrowings	179	194
Payments on borrowings	(33)	(254)
Cash dividends paid	(284)	(263)
Exercise of employee stock options	19	38
Repurchase of shares	(300)	(255)
Employee taxes paid from shares withheld	(23)	(20)
Other - net	(1)	(3)
Net cash provided by (used in) financing activities	(443)	(563)
Effect of currency on cash	(3)	8
Total decrease in cash	(244)	(321)
Cash at the beginning of the period	561	543
Cash at the end of the period	$ 317	$ 222

XML

BASIS OF PRESENTATION

3 Months Ended

Mar. 31, 2018

Organization, Consolidation and Presentation of Financial Statements [Abstract]

BASIS OF PRESENTATION

BASIS OF PRESENTATION

The accompanying unaudited condensed consolidated financial statements of Eaton Corporation plc (Eaton or the Company) have been prepared in accordance with generally accepted accounting principles for interim financial information, the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by United States generally accepted accounting principles (US GAAP) for complete financial statements. However, in the opinion of management, all adjustments (consisting of normal recurring accruals) have been made that are necessary for a fair presentation of the condensed consolidated financial statements for the interim periods.

This Form 10-Q should be read in conjunction with the consolidated financial statements and related notes included in Eaton’s 2017 Form 10-K. The interim period results are not necessarily indicative of the results to be expected for the full year. Management has evaluated subsequent events through the date this Form 10-Q was filed with the Securities and Exchange Commission.

During the first quarter of 2018, Eaton re-segmented certain reportable operating segments due to a reorganization of the Company's businesses. The new reportable business segment is eMobility (which includes certain legacy Electrical Products and Vehicle product lines). For the reportable segments that were re-segmented, previously reported segment financial information has been updated for 2016 and 2017. See Note 13 for additional information related to these segments.

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

Revenue Recognition

Sales are recognized when control of promised goods or services are transferred to customers in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. Control is transferred when the customer has the ability to direct the use of and obtain benefits from the goods or services. The majority of the Company’s sales agreements contain performance obligations satisfied at a point in time when control is transferred to the customer. Sales recognized over time are generally accounted for using an input measure to determine progress completed at the end of the period. Sales for service contracts generally are recognized as the services are provided. For agreements with multiple performance obligations, judgment is required to determine whether performance obligations specified in these agreements are distinct and should be accounted for as separate revenue transactions for recognition purposes. In these types of agreements, we generally allocate sales price to each distinct obligation based on the price of each item sold in separate transactions.

Payment terms vary by the type and location of the customer and the products or services offered. Generally, the time between when revenue is recognized and payment is due is not significant. Eaton does not evaluate whether the selling price includes a financing interest component for contracts that are less than a year. Sales, value add, and other taxes collected concurrent with revenue are excluded from sales. Shipping and handling costs are treated as fulfillment costs and are included in Cost of products sold.

Eaton records reductions to sales for returns, and 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. Returns are estimated at the time of the sale primarily based on historical experience and recorded gross on the Consolidated Balance Sheet. See Note 3 for additional information.

Adoption of New Accounting Standards

Eaton adopted Accounting Standard Update 2014-09, Revenue from Contracts with Customers, at the start of the first quarter of 2018 using the modified retrospective approach and recorded a cumulative effect adjustment to retained earnings based on the current terms and conditions for open contracts as of January 1, 2018. The adoption of the standard did not have a material impact on the Company’s Consolidated financial statements. The comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods.

Consolidated Balance Sheet		Balance at December 31, 2017		Adjustments due to ASU 2014-09			Balance at January 1, 2018
Assets
	Accounts receivable - net	$	3,943	$	(99	)	$	3,844
	Prepaid expenses and other current assets	679		129			808
	Deferred income taxes	253		1			254
Liabilities and shareholders' equity
	Other current liabilities	$	1,872	$	33		$	1,905
	Eaton shareholders' equity	17,253		(2		)	17,251

Eaton adopted Accounting Standards Update 2016-16, Intra-Entity Transfers of Assets Other Than Inventory (ASU 2016-16), at the start of the first quarter of 2018. This accounting standard requires companies to recognize the income tax effects of intercompany sales and transfers of assets other than inventory in the period in which the transfer occurs. The previous accounting standard required companies to defer the income tax effects of intercompany transfers of assets by recording a prepaid tax, until such assets were sold to an outside party or otherwise recognized. ASU 2016-16 requires companies to write off any income tax amounts that had been deferred as prepaid taxes from past intercompany transactions, and record deferred tax balances for amounts that have not been recognized, through a cumulative-effect adjustment to retained earnings. Upon adoption, the Company recorded a cumulative-effect adjustment of $199 to reduce retained earnings.

Eaton adopted Accounting Standards Update 2017-07, Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost (ASU 2017-07), at the start of the first quarter of 2018. The new standard requires companies to present service costs consistent with other employee compensation costs on the income statement and separate from all other elements of pension costs. The retrospective adoption of this standard resulted in a reduction in selling and administrative expense with a corresponding decrease in Other income - net of $1 and $9 for the three months ended March 31, 2018 and 2017, respectively.

Recently Issued Accounting Pronouncement

In February 2016, the FASB issued Accounting Standards Update 2016-02, Leases (Topic 842), (ASU 2016-02). This accounting standard requires that a lessee recognize a lease asset and a lease liability on its balance sheet for all leases, including operating leases, with a term greater than 12 months. ASU 2016-02 will require additional disclosures in the notes to the consolidated financial statements and is effective for annual and interim reporting periods beginning after December 15, 2018. A project team has been formed to evaluate and implement the new standard. The project team is working to gather the data required to account for leases under the new standard, and validating the functionality of third-party lease accounting software. In addition, the Company is in the process of identifying and implementing the appropriate changes to business processes and controls to support recognition and disclosure under the new standard. Eaton plans to adopt the standard as of the first quarter of 2019. Eaton is evaluating the impact of ASU 2016-02 and an estimate of the impact to the consolidated financial statements cannot be made at this time.

XML

ACQUISITION INTEGRATION CHARGES

3 Months Ended

Mar. 31, 2018

Acquisitions Integration Charges [Abstract]

ACQUISITION INTEGRATION CHARGES

ACQUISITION INTEGRATION CHARGES

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

	Three months ended March 31
	2018		2017
Electrical Products	$	—	$	1
Total acquisition integration charges before income taxes	—		1
Income taxes	—		—
Total after income taxes	$	—	$	1
Per ordinary share - diluted	$	—	$	—

Business segment acquisition integration charges in 2017 related to the integration of Ephesus Lighting, Inc. (Ephesus), which was acquired in 2015. The charges associated with Ephesus were included in Selling and administrative expense. In Business Segment Information, the charges reduced Operating profit of the related business segment. See Note 13 for additional information about business segments.

XML

REVENUE RECOGNITION

3 Months Ended

Mar. 31, 2018

Revenue from Contract with Customer [Abstract]

REVENUE RECOGNITION

REVENUE RECOGNITION

Sales are recognized when obligations under the terms of the contract are satisfied and control of promised goods or services have transferred to our customers. Sales are measured at the amount of consideration the Company expects to be paid in exchange for these products or services.

The majority of the Company’s sales agreements contain performance obligations satisfied at a point in time when title and risk and rewards of ownership have transferred to the customer. Sales recognized over time are less than 5% of Eaton’s Consolidated Net Sales. Sales recognized over time are generally accounted for using an input measure to determine progress completed at the end of the period. Sales for service contracts generally are recognized as the services are provided. For agreements with multiple performance obligations, judgment is required to determine whether performance obligations specified in these agreements are distinct and should be accounted for as separate revenue transactions for recognition purposes. In these types of agreements, we generally allocate sales price to each distinct obligation based on the price of each item sold in separate transactions.

Due to the nature of the work required to be performed for obligations recognized over time, Eaton estimates total costs by contract. The estimate of total costs are subject to judgment. Estimated amounts are included in the recognized sales price to the extent it is not probable that a significant reversal of cumulative sales will occur. Additionally, contracts can be modified to account for changes in contract specifications, requirements or sale price. The effect of a contract modification on the sales price or adjustments to the measure of completion under the input method are recognized as adjustments to revenue on a cumulative catch-up basis.

Payment terms vary by the type and location of the customer and the products or services offered. Generally, the time between when revenue is recognized and when payment is due is not significant. Eaton does not evaluate whether the selling price includes a financing interest component for contracts that are less than a year. Sales, value add, and other taxes collected concurrent with revenue are excluded from sales. Shipping and handling costs are treated as fulfillment costs and are included in Cost of products sold.

Eaton records reductions to sales for returns, and 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. Returns are estimated at the time of the sale primarily based on historical experience and are recorded gross on the Condensed Consolidated Balance Sheet.

Sales commissions are expensed when the amortization period is less than a year and are generally not capitalized as they are typically earned at the completion of the contract when the customer is invoiced or when the customer pays Eaton.

Sales of products and services varies by segment and are discussed in Note 15 of Eaton’s 2017 Form 10-K and in Note 13.

In the Electrical Products segment, sales contracts are primarily for electrical components, industrial components, residential products, single phase power quality, emergency lighting, fire detection, wiring devices, structural support systems, circuit protection, and lighting products. These sales contracts are primarily based on a customer’s purchase order followed by our order acknowledgement, and may also include a master supply or distributor agreement. In this segment, performance obligations are generally satisfied at a point in time either when we ship the product from our facility, or when it arrives at the customer’s facility.

In the Electrical Systems and Services segment, sales contracts are primarily for 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 majority of the sales contracts in this segment contain performance obligations satisfied at a point in time either when we ship the product from our facility, or when it arrives at the customer’s facility; however, certain power distribution and power quality services are recognized over time.

Many of the products and services in power distribution and power quality services meet the definition of continuous transfer of control to customers and are recognized over time. These products are engineered to a customer’s design specifications, have no alternative use to Eaton, and are controlled by the customer as evidenced by the customer’s contractual ownership of the work in process or our right to payment for work performed to date plus a reasonable margin. As control is transferring over time, sales are recognized based on the extent of progress towards completion of the obligation. Eaton generally uses an input method to determine the progress completed and sales are recorded proportionally as costs are incurred. Incurred cost represent work performed, which corresponds with, and thereby best depicts, the transfer of control to the customer.

In the Hydraulics segment, sales contracts are primarily for hydraulic components and systems for industrial and mobile equipment. These sales contracts are primarily based on a customer’s purchase order. In this segment, performance obligations are generally satisfied at a point in time when we ship the product from our facility.

In the Aerospace segment, sales contracts are primarily for aerospace fuel, hydraulics, and pneumatic systems for commercial and military use. These sales contracts are primarily based on a customer’s purchase order, and frequently covered by terms and conditions included in a long-term agreement. In this segment, performance obligations are generally satisfied at a point in time either when we ship the product from our facility, or when it arrives at the customer’s facility. Our military contracts are primarily fixed-price contracts that are not subject to performance-based payments or progress payments from the customer.

In the Vehicle segment, sales contracts are primarily for drivetrains, powertrain systems and critical components that reduce emissions and improve fuel economy, stability, performance, and safety of cars, light trucks and commercial vehicles. These sales contracts are primarily based on a customer’s purchase order or a blanket purchase order subject to firm releases, frequently covered by terms and conditions included in a master supply agreement. In this segment, performance obligations are generally satisfied at a point in time either when we ship the product from our facility, or when it arrives at the customer’s facility.

In the eMobility segment, sales contracts are primarily for electronic and mechanical components and systems that improves the power management and performance of both on-road and off-road vehicles. These sales contracts are primarily based on a customer’s purchase order. In this segment, performance obligations are generally satisfied at a point in time either when we ship the product from our facility, or when it arrives at the customer’s facility.

In limited circumstances, primarily in the Electrical and Vehicle segments, Eaton sells separately-priced warranties that extend the warranty coverage beyond the standard coverage offered on specific products. Sales for these separately-priced warranties are recorded based on their stand-alone selling price and are recognized as revenue over the length of the warranty period.

The Company’s six operating segments and the following tables disaggregate sales by lines of businesses, geographic destination, market channel or end market.

Net sales	United States		Rest of world		Total
Electrical Products	$	960	$	772	$	1,732
Electrical Systems and Services	894		487		1,381
Hydraulics	297		413		710
	Original Equipment Manufacturers		Aftermarket, Distribution and End User
Aerospace	$	264	$	194	458
	Commercial		Passenger and Light Duty
Vehicle	$	430	$	463	893
eMobility					77
Total					$	5,251

The timing of revenue recognition, billings and cash collections results in billed accounts receivable, unbilled receivables (revenue recognized exceeds amount billed to the customer), and deferred revenue (advance payments and billings in excess of revenue recognized). Accounts receivables from customers were $3,520 and $3,399 at March 31, 2018 and December 31, 2017, respectively. Amounts are billed as work progresses in accordance with agreed-upon contractual terms, either at periodic intervals or upon achievement of contractual milestones. These assets and liabilities are reported on the Condensed Consolidated Balance Sheets on a contract-by-contract basis at the end of each reporting period. Unbilled receivables were $129 and $117 at March 31, 2018 and January 1, 2018, respectively, and are recorded in Prepaid expenses and other current assets. The increase in the unbilled receivables was primarily due to revenue recognized and not yet billed, partially offset by billings to customers during the quarter.

Changes in the deferred revenue liabilities are as follows:

	Deferred Revenue
Balance at January 1, 2018	$	227
Customer deposits and billings	232
Revenue recognized in the period	(209		)
Translation	1
Balance at March 31, 2018	$	251

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 releases by customers. In measuring backlog of unsatisfied or partially satisfied obligations, only the amount of orders to which customers are firmly committed are included. Using this criterion, total backlog at March 31, 2018 was approximately $5.2 billion. Eaton expects to recognize approximately 88% of this backlog in the next twelve months and the rest thereafter.

Impact of new accounting standard

In accordance with the new revenue accounting requirements, the impact of the adoption on the financial statement line items within the accompanying financial statements was as follows:

	Three months ended March 31, 2018
Consolidated Statements of Income	As Reported		Adjustment			Balances without Adoption of ASC 606
Net sales	$	5,251	$	(7	)	$	5,244
Cost of products sold	3,573		(4		)	3,569
Income before income taxes	565		(3		)	562
Income tax expense	78		(1		)	77
Net income	487		(2		)	485
Net income attributable to Eaton ordinary shareholders	$	488	$	(2	)	$	486

	March 31, 2018
Condensed Consolidated Balance Sheets	As Reported		Adjustment			Balances without Adoption of ASC 606
Assets
Accounts receivable - net	$	4,005	$	107		$	4,112
Inventory	2,745		3			2,748
Prepaid expenses and other current assets	552		(139		)	413
Deferred income taxes	356		(1		)	355
Liabilities
Other current liabilities	$	1,861	$	(30	)	$	1,831

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RESTRUCTURING CHARGES

3 Months Ended

Mar. 31, 2018

Restructuring and Related Activities [Abstract]

RESTRUCTURING CHARGES

RESTRUCTURING CHARGES

During 2015, Eaton announced its commitment to undertake actions to reduce its cost structure in all business segments and at corporate. The multi-year initiative concluded at the end of 2017.

A summary of liabilities related to workforce reductions, plant closings and other associated costs announced as part of this program follows:

	Workforce reductions			Plant closings and other			Total
Balance at December 31, 2016	$	113		$	1		$	114
Liability recognized	57			59			116
Payments	(102		)	(39		)	(141		)
Other adjustments	(1		)	(16		)	(17		)
Balance at December 31, 2017	67			5			72
Payments	(13		)	(3		)	(16		)
Other adjustments	(8		)	—			(8		)
Balance at March 31, 2018	$	46		$	2		$	48

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GOODWILL

3 Months Ended

Mar. 31, 2018

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL

GOODWILL

Change in the carrying amount of goodwill by segment follows:

	December 31, 2017		Translation		March 31, 2018
Electrical Products	$	6,678	$	77	$	6,755
Electrical Systems and Services	4,311		42		4,353
Hydraulics	1,257		5		1,262
Aerospace	947		4		951
Vehicle	294		1		295
eMobility	81		1		82
Total	$	13,568	$	130	$	13,698

Eaton re-segmented certain reportable operating segments due to a reorganization of the Company's businesses. The new reportable business segment is eMobility (which includes certain legacy Electrical Products and Vehicle product lines). The Company used the relative fair value method to reallocate goodwill to the associated reporting units.

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RETIREMENT BENEFITS PLANS

3 Months Ended

Mar. 31, 2018

Retirement Benefits [Abstract]

RETIREMENT BENEFITS PLANS

RETIREMENT BENEFITS PLANS

The components of retirement benefits expense follow:

	United States pension benefit expense						Non-United States pension benefit expense						Other postretirement benefits expense
	Three months ended March 31
	2018			2017			2018			2017			2018			2017
Service cost	$	25		$	24		$	16		$	17		$	1		$	1
Interest cost	30			31			14			13			3			3
Expected return on plan assets	(63		)	(61		)	(27		)	(23		)	(1		)	(1		)
Amortization	24			20			10			13			(3		)	(3		)
	16			14			13			20			—			—
Settlements	14			17			—			—			—			—
Total expense	$	30		$	31		$	13		$	20		$	—		$	—

The components of retirement benefits expense other than service costs are included in Other income - net.

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LEGAL CONTINGENCIES

3 Months Ended

Mar. 31, 2018

Commitments and Contingencies Disclosure [Abstract]

LEGAL CONTINGENCIES

LEGAL CONTINGENCIES

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

In December 2011, Pepsi-Cola Metropolitan Bottling Company, Inc. (“Pepsi”) filed an action against (a) Cooper Industries, LLC, Cooper Industries, Ltd., Cooper Holdings, Ltd., Cooper US, Inc., and Cooper Industries plc (collectively, “Cooper”), (b) M&F Worldwide Corp., Mafco Worldwide Corp., Mafco Consolidated Group LLC, and PCT International Holdings, Inc. (collectively, “Mafco”), and (c) the Pneumo Abex Asbestos Claims Settlement Trust (the “Trust”) in Texas state court. Pepsi alleged that it was harmed by a 2011 settlement agreement (“2011 Settlement”) among Cooper, Mafco, and Pneumo Abex, LLC (“Pneumo,” which prior to the 2011 Settlement was a Mafco subsidiary), which settlement resolved litigation that Pneumo had previously brought against Cooper involving, among other things, a guaranty related to Pneumo’s friction products business. In November 2015, after a Texas court ruled that Pepsi's claims should be heard in arbitration, Pepsi filed a demand for arbitration against Cooper, Mafco, the Trust, and Pneumo. Pepsi subsequently dropped claims against all parties except Cooper. An arbitration under the auspices of the American Arbitration Association commenced in October 2017. Pepsi’s experts have opined, among other things, that the value contributed to the Trust for a release of the guaranty was approximately $440 below reasonably equivalent value, and that an inability of Pneumo to satisfy future liabilities may result in plaintiffs suing Pepsi under various theories. Cooper submitted various expert reports and, among other things, Cooper’s experts have opined that Pepsi has no basis to seek any damages and that Cooper paid reasonably equivalent value for the release of its indemnity obligations under the guaranty. The arbitration proceedings closed in December 2017. The parties are awaiting the issuance of a decision. The Company believes that the claims of Pepsi are without merit, and that the ultimate resolution of this matter will not have a material impact on the Company’s consolidated financial statements.

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INCOME TAXES

3 Months Ended

Mar. 31, 2018

Income Tax Disclosure [Abstract]

INCOME TAXES

INCOME TAXES

The effective income tax rate for the first quarter of 2018 was expense of 13.8% compared to expense of 7.0% for the first quarter of 2017. The increase in the effective tax rate in the first quarter of 2018 was due to the impact of the U.S. Tax Cuts and Jobs Act (“TCJA”) and the impact of realization of a foreign deferred tax asset in the first quarter of 2017.

The TCJA was enacted on December 22, 2017 and the Company recorded provisional tax amounts in the fourth quarter of 2017 for the remeasurement of deferred tax balances, including valuation allowances related to the realization of deferred tax assets, and the one-time transition tax. The Company continues to analyze aspects of the TCJA, including potential impact to the provisional amounts recorded for the remeasurement of deferred tax balances and related valuation allowances, and the one-time transition tax. The Company did not record any adjustments to the 2017 provisional tax amounts in the first quarter of 2018.

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EQUITY

3 Months Ended

Mar. 31, 2018

Stockholders' Equity Note [Abstract]

EQUITY

EQUITY

During the first quarter of 2018 and 2017, 3.7 million and 3.6 million ordinary shares, respectively, were repurchased under the 2016 Program in the open market at a total cost of $300 and $255, respectively.

The changes in Shareholders’ equity follow:

	Eaton shareholders’ equity			Noncontrolling interests			Total equity
Balance at December 31, 2017	$	17,253		$	37		$	17,290
Cumulative-effect adjustment upon adoption of ASU 2014-09	(2		)	—			(2		)
Cumulative-effect adjustment upon adoption of ASU 2016-16	(199		)	—			(199		)
Net income (loss)	488			(1		)	487
Other comprehensive income	296			—			296
Cash dividends paid and accrued	(290		)	—			(290		)
Issuance of shares under equity-based compensation plans - net	17			—			17
Repurchase of shares	(300		)	—			(300		)
Changes in noncontrolling interest - net	—			2			2
Balance at March 31, 2018	$	17,263		$	38		$	17,301

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, 2017	$	(2,255	)	$	(1,139	)	$	(10	)	$	(3,404	)
Other comprehensive (loss) income    before reclassifications	257			(12		)	10			255
Amounts reclassified from Accumulated other    comprehensive loss (income)	—			38			3			41
Net current-period Other comprehensive    income (loss)	257			26			13			296
Balance at March 31, 2018	$	(1,998	)	$	(1,113	)	$	3		$	(3,108	)

The reclassifications out of Accumulated other comprehensive loss follow:

	Three months ended March 31, 2018				Consolidated statements of income classification
Amortization of defined benefit pensions and other postretirement benefits items
Actuarial loss and prior service cost	$	(45	)	1
Tax benefit	7
Total, net of tax	(38		)
Gains and (losses) on cash flow hedges
Currency exchange contracts	(4		)		Cost of products sold
Tax benefit	1
Total, net of tax	(3		)
Total reclassifications for the period	$	(41	)

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

Net Income Per Share Attributable to Eaton Ordinary Shareholders

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

	Three months ended March 31
(Shares in millions)	2018		2017
Net income attributable to Eaton ordinary shareholders	$	488	$	434
Weighted-average number of ordinary shares outstanding - diluted	441.7		451.0
Less dilutive effect of equity-based compensation	2.9		2.2
Weighted-average number of ordinary shares outstanding - basic	438.8		448.8
Net income per share attributable to Eaton ordinary shareholders
Diluted	$	1.10	$	0.96
Basic	1.11		0.97

For the first quarter of 2018 and 2017, 0.1 million and 1.2 million stock options, respectively, were excluded from the calculation of diluted net income per share attributable to Eaton ordinary shareholders because the exercise price of the options exceeded the average market price of the ordinary shares during the period and their effect, accordingly, would have been antidilutive.

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FAIR VALUE MEASUREMENTS

3 Months Ended

Mar. 31, 2018

Fair Value Disclosures [Abstract]

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS

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

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

	Total			Level 1		Level 2			Level 3
March 31, 2018
Cash	$	317		$	317	$	—		$	—
Short-term investments	510			510		—			—
Net derivative contracts	(13		)	—		(13		)	—
December 31, 2017
Cash	$	561		$	561	$	—		$	—
Short-term investments	534			534		—			—
Net derivative contracts	36			—		36			—

Eaton values its financial instruments using an industry standard market approach, in which prices and other relevant information is generated by market transactions involving identical or comparable assets or liabilities. No financial instruments were measured using unobservable inputs.

Other Fair Value Measurements

Long-term debt and the current portion of long-term debt had a carrying value of $7,692 and fair value of $7,790 at March 31, 2018 compared to $7,745 and $8,048, respectively, at December 31, 2017. The fair value of Eaton's debt instruments were estimated using prevailing market interest rates on debt with similar creditworthiness, terms and maturities, and are considered a Level 2 fair value measurement.

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DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES

3 Months Ended

Mar. 31, 2018

Derivative Instruments and Hedging Activities Disclosure [Abstract]

DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES

DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES

In the normal course of business, Eaton is exposed to certain risks related to fluctuations in interest rates, currency exchange rates and commodity prices. The Company uses various derivative and non-derivative financial instruments, primarily interest rate swaps, currency forward exchange contracts, currency swaps and, to a lesser extent, commodity contracts, to manage risks from these market fluctuations. The instruments used by Eaton are straightforward, non-leveraged instruments. The counterparties to these instruments are financial institutions with strong credit ratings. Eaton maintains control over the size of positions entered into with any one counterparty and regularly monitors the credit rating of these institutions. Such instruments are not purchased and sold for trading purposes.

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

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

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

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

The gain or loss from a derivative financial instrument designated as a hedge that is effective is classified in the same line of the Consolidated Statements of Income as the offsetting loss or gain on the hedged item. The change in fair value of a derivative financial instrument that is not effective as a hedge is immediately recognized in income. The cash flows resulting from these financial instruments are classified in operating activities on the Condensed Consolidated Statements of Cash Flows.

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

Eaton uses certain of its debt denominated in foreign currency to hedge portions of its net investments in foreign operations against foreign currency exposure (net investment hedges). Foreign currency denominated debt designated as non-derivative net investment hedging instruments on an after-tax basis was $94 at March 31, 2018 and $88 at December 31, 2017, and designated on a pre-tax basis was $670 at March 31, 2018 and $652 at December 31, 2017.

Derivative Financial Statement Impacts

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

	Notional amount		Other  current assets		Other noncurrent assets		Other current liabilities		Other noncurrent liabilities		Type of hedge	Term
March 31, 2018
Derivatives designated as hedges
Fixed-to-floating interest rate  swaps	$	2,965	$	—	$	21	$	2	$	37	Fair value	2 months to 17 years
Currency exchange contracts	990		9		13		15		1		Cash flow	1 to 36 months
Total			$	9	$	34	$	17	$	38
Derivatives not designated as  hedges
Currency exchange contracts	$	3,543	$	19			$	20				1 to 12 months
Commodity contracts	17		—				—					1 to 12 months
Total			$	19			$	20
December 31, 2017
Derivatives designated as hedges
Fixed-to-floating interest rate  swaps	$	2,965	$	1	$	41	$	—	$	17	Fair value	6 months to 17 years
Currency exchange contracts	924		7		7		22		2		Cash flow	1 to 36 months
Total			$	8	$	48	$	22	$	19
Derivatives not designated as  hedges
Currency exchange contracts	$	3,719	$	39			$	19				1 to 12 months
Commodity contracts	13		1				—					1 to 12 months
Total			$	40			$	19

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

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

	Gain (loss) recognized in other comprehensive (loss) income					Location of gain (loss) reclassified from Accumulated other comprehensive loss	Gain (loss) reclassified from Accumulated other comprehensive loss
	Three months ended March 31						Three months ended March 31
	2018		2017				2018			2017
Derivatives designated as    cash flow hedges
Currency exchange contracts	$	13	$	(1	)	Cost of products sold	$	(4	)	$	(4	)
Total	$	13	$	(1	)		$	(4	)	$	(4	)

Amounts recognized in net income follow:

	Three months ended March 31
	2018			2017
Derivatives designated as fair value hedges
Fixed-to-floating interest rate swaps	$	(43	)	$	(11	)
Related long-term debt converted to floating interest    rates by interest rate swaps	43			11
	$	—		$	—

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

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INVENTORY

3 Months Ended

Mar. 31, 2018

Inventory Disclosure [Abstract]

INVENTORY

INVENTORY

Inventory is carried at lower of cost or net realizable value. The components of inventory follow:

	March 31, 2018		December 31, 2017
Raw materials	$	1,019	$	953
Work-in-process	523		471
Finished goods	1,203		1,196
Total inventory	$	2,745	$	2,620

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BUSINESS SEGMENT INFORMATION

3 Months Ended

Mar. 31, 2018

Segment Reporting [Abstract]

BUSINESS SEGMENT INFORMATION

BUSINESS SEGMENT INFORMATION

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

During the first quarter of 2018, Eaton re-segmented certain reportable operating segments due to a reorganization of the Company's businesses. The new reportable business segment is eMobility (which includes certain legacy Electrical Products and Vehicle product lines). 

The eMobility segment designs, manufactures, markets, and supplies electrical and electronic components and systems that improve the power management and performance of both on-road and off-road vehicles. Products include high voltage inverters, converters, fuses, onboard chargers, circuit protection units, vehicle controls, power distribution, fuel tank isolation valves, and commercial vehicle hybrid systems. The principal markets for the eMobility segment are original equipment manufacturers and aftermarket customers of passenger cars, commercial vehicles, and construction, agriculture, and mining equipment.

Eaton’s operating segments are Electrical Products, Electrical Systems and Services, Hydraulics, Aerospace, Vehicle, and eMobility. Operating profit includes the operating profit from intersegment sales. For additional information regarding Eaton’s business segments, see Note 15 to the Consolidated Financial Statements contained in the 2017 Form 10-K.

	Three months ended March 31
	2018			2017
Net sales
Electrical Products	$	1,732		$	1,651
Electrical Systems and Services	1,381			1,333
Hydraulics	710			587
Aerospace	458			428
Vehicle	893			786
eMobility	77			63
Total net sales	$	5,251		$	4,848
Segment operating profit
Electrical Products	$	307		$	286
Electrical Systems and Services	167			155
Hydraulics	90			60
Aerospace	89			79
Vehicle	132			108
eMobility	11			11
Total segment operating profit	796			699
Corporate
Amortization of intangible assets	(98		)	(94		)
Interest expense - net	(70		)	(61		)
Pension and other postretirement benefits expense	(2		)	(11		)
Other corporate expense - net	(61		)	(66		)
Income before income taxes	565			467
Income tax expense	78			33
Net income	487			434
Less net loss for noncontrolling interests	1			—
Net income attributable to Eaton ordinary shareholders	$	488		$	434

New Business Segments - Results of Operations

For the reportable segments that were re-segmented, previously reported segment financial information has been updated for all periods reported in 2016 and 2017. The re-segmentation did not impact previously reported consolidated results of operations.

Electrical Products

	Year ended December 31, 2017			Quarter ended in 2017												Year ended December 31, 2016			Quarter ended in 2016
				Dec. 31			Sept. 30			June 30			Mar. 31						Dec. 31			Sept. 30			June 30			Mar. 31
Net sales	$	6,917		$	1,750		$	1,785		$	1,731		$	1,651		$	6,703		$	1,665		$	1,705		$	1,717		$	1,616
Operating profit	$	1,233		$	318		$	330		$	299		$	286		$	1,186		$	305		$	317		$	304		$	260
Operating margin	17.8		%	18.2		%	18.5		%	17.3		%	17.3		%	17.7		%	18.3		%	18.6		%	17.7		%	16.1		%
Acquisition integration charges	$	4		$	1		$	1		$	1		$	1		$	3		$	1		$	1		$	1		$	—
Before acquisition integration    charges
Operating profit	$	1,237		$	319		$	331		$	300		$	287		$	1,189		$	306		$	318		$	305		$	260
Operating margin	17.9		%	18.2		%	18.5		%	17.3		%	17.4		%	17.7		%	18.4		%	18.7		%	17.8		%	16.1		%

Vehicle

	Year ended December 31, 2017			Quarter ended in 2017												Year ended December 31, 2016			Quarter ended in 2016
				Dec. 31			Sept. 30			June 30			Mar. 31						Dec. 31			Sept. 30			June 30			Mar. 31
Net sales	$	3,326		$	837		$	858		$	845		$	786		$	3,141		$	739		$	784		$	825		$	793
Operating profit	$	541		$	142		$	150		$	141		$	108		$	471		$	97		$	122		$	135		$	117
Operating margin	16.3		%	17.0		%	17.5		%	16.7		%	13.7		%	15.0		%	13.1		%	15.6		%	16.4		%	14.8		%

eMobility

	Year ended December 31, 2017			Quarter ended in 2017												Year ended December 31, 2016			Quarter ended in 2016
				Dec. 31			Sept. 30			June 30			Mar. 31						Dec. 31			Sept. 30			June 30			Mar. 31
Net sales	$	283		$	73		$	75		$	72		$	63		$	266		$	63		$	64		$	73		$	66
Operating profit	$	50		$	10		$	16		$	13		$	11		$	57		$	11		$	14		$	20		$	12
Operating margin	17.7		%	13.7		%	21.3		%	18.1		%	17.5		%	21.4		%	17.5		%	21.9		%	27.4		%	18.2		%

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CONDENSED CONSOLIDATING FINANCIAL STATEMENTS

3 Months Ended

Mar. 31, 2018

Condensed Consolidating Financial Information [Abstract]

CONDENSED CONSOLIDATING FINANCIAL STATEMENTS

CONDENSED CONSOLIDATING FINANCIAL STATEMENTS

The Registered Senior Notes issued by Eaton Corporation are registered under the Securities Act of 1933. Eaton and certain 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 Registered 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 6 of Eaton's 2017 Form 10-K for additional information related to the Registered 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.

During 2018 and 2017, the Company undertook certain steps to restructure ownership of various subsidiaries. The transactions were entirely among wholly-owned subsidiaries under the common control of Eaton. This restructuring has been reflected as of the beginning of the earliest period presented below.

CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME FOR THE THREE MONTHS ENDED MARCH 31, 2018
	Eaton Corporation plc			Eaton Corporation			Guarantors			Other subsidiaries			Consolidating adjustments			Total
Net sales	$	—		$	1,689		$	1,700		$	3,191		$	(1,329	)	$	5,251
Cost of products sold	—			1,352			1,236			2,310			(1,325		)	3,573
Selling and administrative expense	3			341			178			367			—			889
Research and development expense	—			39			41			76			—			156
Interest expense (income) - net	—			68			4			(1		)	(1		)	70
Other expense (income) - net	18			5			(9		)	(16		)	—			(2		)
Equity in loss (earnings) of    subsidiaries, net of tax	(514		)	(178		)	(829		)	(659		)	2,180			—
Intercompany expense (income) - net	5			(21		)	486			(470		)	—			—
Income (loss) before income taxes	488			83			593			1,584			(2,183		)	565
Income tax expense (benefit)	—			(6		)	(14		)	99			(1		)	78
Net income (loss)	488			89			607			1,485			(2,182		)	487
Less net loss (income) for    noncontrolling interests	—			—			—			1			—			1
Net income (loss) attributable to    Eaton ordinary shareholders	$	488		$	89		$	607		$	1,486		$	(2,182	)	$	488
Other comprehensive income (loss)	$	296		$	38		$	296		$	613		$	(947	)	$	296
Total comprehensive income   (loss) attributable to Eaton   ordinary shareholders	$	784		$	127		$	903		$	2,099		$	(3,129	)	$	784

CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME FOR THE THREE MONTHS ENDED MARCH 31, 2017
	Eaton Corporation plc			Eaton Corporation			Guarantors			Other subsidiaries			Consolidating adjustments			Total
Net sales	$	—		$	1,572		$	1,656		$	2,930		$	(1,310	)	$	4,848
Cost of products sold	—			1,251			1,228			2,140			(1,312		)	3,307
Selling and administrative expense	32			317			199			328			—			876
Research and development expense	—			54			49			40			—			143
Interest expense (income) - net	—			62			5			(5		)	(1		)	61
Other expense (income) - net	7			10			1			(24		)	—			(6		)
Equity in loss (earnings) of    subsidiaries, net of tax	(583		)	169			(790		)	(658		)	1,862			—
Intercompany expense (income) - net	110			(30		)	338			(418		)	—			—
Income (loss) before income taxes	434			(261		)	626			1,527			(1,859		)	467
Income tax expense (benefit)	—			(3		)	16			18			2			33
Net income (loss)	434			(258		)	610			1,509			(1,861		)	434
Less net loss (income) for    noncontrolling interests	—			—			—			(1		)	1			—
Net income (loss) attributable to    Eaton ordinary shareholders	$	434		$	(258	)	$	610		$	1,508		$	(1,860	)	$	434
Other comprehensive income (loss)	$	263		$	63		$	262		$	516		$	(841	)	$	263
Total comprehensive income    (loss) attributable to Eaton    ordinary shareholders	$	697		$	(195	)	$	872		$	2,024		$	(2,701	)	$	697

CONDENSED CONSOLIDATING BALANCE SHEETS MARCH 31, 2018
	Eaton Corporation plc		Eaton Corporation		Guarantors			Other subsidiaries		Consolidating adjustments			Total
Assets
Current assets
Cash	$	—	$	10	$	6		$	301	$	—		$	317
Short-term investments	—		—		—			510		—			510
Accounts receivable - net	—		453		1,407			2,145		—			4,005
Intercompany accounts    receivable	3		1,607		1,724			2,952		(6,286		)	—
Inventory	—		517		766			1,549		(87		)	2,745
Prepaid expenses and    other current assets	—		108		97			317		30			552
Total current assets	3		2,695		4,000			7,774		(6,343		)	8,129
Property, plant and    equipment - net	—		841		698			2,004		—			3,543
Other noncurrent assets
Goodwill	—		1,317		6,705			5,676		—			13,698
Other intangible assets	—		135		3,168			1,903		—			5,206
Deferred income taxes	—		360		3			298		(305		)	356
Investment in subsidiaries	15,651		9,742		54,848			23,602		(103,843		)	—
Intercompany loans receivable	3,122		3,235		5,313			64,992		(76,662		)	—
Other assets	—		741		166			829		—			1,736
Total assets	$	18,776	$	19,066	$	74,901		$	107,078	$	(187,153	)	$	32,668
Liabilities and    shareholders’ equity
Current liabilities
Short-term debt	$	—	$	90	$	—		$	95	$	—		$	185
Current portion of    long-term debt	—		844		2			1		—			847
Accounts payable	—		504		392			1,307		—			2,203
Intercompany accounts payable	6		1,388		3,243			1,649		(6,286		)	—
Accrued compensation	—		46		31			223		—			300
Other current liabilities	8		492		311			1,050		—			1,861
Total current liabilities	14		3,364		3,979			4,325		(6,286		)	5,396
Noncurrent liabilities
Long-term debt	—		5,841		995			9		—			6,845
Pension liabilities	—		333		88			804		—			1,225
Other postretirement    benefits liabilities	—		191		95			73		—			359
Deferred income taxes	—		—		605			257		(305		)	557
Intercompany loans payable	1,499		3,955		70,262			946		(76,662		)	—
Other noncurrent liabilities	—		330		270			385		—			985
Total noncurrent liabilities	1,499		10,650		72,315			2,474		(76,967		)	9,971
Shareholders’ equity
Eaton shareholders' equity	17,263		5,052		(1,393		)	100,241		(103,900		)	17,263
Noncontrolling interests	—		—		—			38		—			38
Total equity	17,263		5,052		(1,393		)	100,279		(103,900		)	17,301
Total liabilities and equity	$	18,776	$	19,066	$	74,901		$	107,078	$	(187,153	)	$	32,668

CONDENSED CONSOLIDATING BALANCE SHEETS DECEMBER 31, 2017
	Eaton Corporation plc		Eaton Corporation		Guarantors		Other subsidiaries		Consolidating adjustments			Total
Assets
Current assets
Cash	$	—	$	183	$	18	$	360	$	—		$	561
Short-term investments	—		—		—		534		—			534
Accounts receivable - net	—		482		1,376		2,085		—			3,943
Intercompany accounts    receivable	8		2,865		5,155		2,716		(10,744		)	—
Inventory	—		473		737		1,493		(83		)	2,620
Prepaid expenses and    other current assets	—		229		145		277		28			679
Total current assets	8		4,232		7,431		7,465		(10,799		)	8,337
Property, plant and    equipment - net	—		859		702		1,941		—			3,502
Other noncurrent assets
Goodwill	—		1,316		6,705		5,547		—			13,568
Other intangible assets	—		138		3,206		1,921		—			5,265
Deferred income taxes	—		356		6		215		(324		)	253
Investment in subsidiaries	15,045		9,503		75,379		39,848		(139,775		)	—
Intercompany loans receivable	3,122		7,105		2,909		61,427		(74,563		)	—
Other assets	—		748		166		784		—			1,698
Total assets	$	18,175	$	24,257	$	96,504	$	119,148	$	(225,461	)	$	32,623
Liabilities and    shareholders’ equity
Current liabilities
Short-term debt	$	—	$	—	$	—	$	6	$	—		$	6
Current portion of    long-term debt	—		542		35		1		—			578
Accounts payable	—		549		330		1,287		—			2,166
Intercompany accounts payable	4		4,917		4,418		1,405		(10,744		)	—
Accrued compensation	—		128		65		260		—			453
Other current liabilities	1		566		317		989		(1		)	1,872
Total current liabilities	5		6,702		5,165		3,948		(10,745		)	5,075
Noncurrent liabilities
Long-term debt	—		6,180		976		9		2			7,167
Pension liabilities	—		341		89		796		—			1,226
Other postretirement    benefits liabilities	—		192		96		74		—			362
Deferred income taxes	—		—		607		255		(324		)	538
Intercompany loans payable	917		3,808		68,685		1,153		(74,563		)	—
Other noncurrent liabilities	—		314		273		378		—			965
Total noncurrent liabilities	917		10,835		70,726		2,665		(74,885		)	10,258
Shareholders’ equity
Eaton shareholders' equity	17,253		6,720		20,613		112,498		(139,831		)	17,253
Noncontrolling interests	—		—		—		37		—			37
Total equity	17,253		6,720		20,613		112,535		(139,831		)	17,290
Total liabilities and equity	$	18,175	$	24,257	$	96,504	$	119,148	$	(225,461	)	$	32,623

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS FOR THE THREE MONTHS ENDED MARCH 31, 2018
	Eaton Corporation plc			Eaton Corporation			Guarantors			Other subsidiaries			Consolidating adjustments			Total
Net cash provided by (used in)    operating activities	$	2		$	(66	)	$	82		$	321		$	—		$	339
Investing activities
Capital expenditures for property,    plant and equipment	—			(23		)	(24		)	(84		)	—			(131		)
Sales (purchases) of short-term investments - net	—			—			—			31			—			31
Investments in affiliates	—			(36		)	—			—			36			—
Loans to affiliates	—			—			(486		)	(1,177		)	1,663			—
Repayments of loans from affiliates	—			16			886			1,299			(2,201		)	—
Other - net	—			(15		)	(4		)	(18		)	—			(37		)
Net cash provided by (used in) investing activities	—			(58		)	372			51			(502		)	(137		)
Financing activities
Proceeds from borrowings	—			90			—			89			—			179
Payments on borrowings	—			—			(33		)	—			—			(33		)
Proceeds from borrowings from    affiliates	585			1,050			28			—			(1,663		)	—
Payments on borrowings from    affiliates	(22		)	(1,409		)	(16		)	(754		)	2,201			—
Capital contributions from affiliates	—			—			—			36			(36		)	—
Other intercompany financing    activities	—			237			(441		)	204			—			—
Cash dividends paid	(284		)	—			—			—			—			(284		)
Exercise of employee stock options	19			—			—			—			—			19
Repurchase of shares	(300		)	—			—			—			—			(300		)
Employee taxes paid from shares withheld	—			(16		)	(4		)	(3		)	—			(23		)
Other - net	—			(1		)	—			—			—			(1		)
Net cash provided by (used in)    financing activities	(2		)	(49		)	(466		)	(428		)	502			(443		)
Effect of currency on cash	—			—			—			(3		)	—			(3		)
Total increase (decrease) in cash	—			(173		)	(12		)	(59		)	—			(244		)
Cash at the beginning of the period	—			183			18			360			—			561
Cash at the end of the period	$	—		$	10		$	6		$	301		$	—		$	317

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS FOR THE THREE MONTHS ENDED MARCH 31, 2017
	Eaton Corporation plc			Eaton Corporation			Guarantors			Other subsidiaries			Consolidating adjustments			Total
Net cash provided by (used in)    operating activities	$	611		$	430		$	733		$	196		$	(1,507	)	$	463
Investing activities
Capital expenditures for property,    plant and equipment	—			(20		)	(26		)	(70		)	—			(116		)
Sales (purchases) of short-term investments - net	—			—			—			(93		)	—			(93		)
Investments in affiliates	—			(1		)	—			—			1			—
Loans to affiliates	—			(6		)	(87		)	(2,348		)	2,441			—
Repayments of loans from affiliates	—			19			55			2,195			(2,269		)	—
Other - net	—			(11		)	2			(11		)	—			(20		)
Net cash provided by (used in)    investing activities	—			(19		)	(56		)	(327		)	173			(229		)
Financing activities
Proceeds from borrowings	—			194			—			—			—			194
Payments on borrowings	—			(250		)	—			(4		)	—			(254		)
Proceeds from borrowings from    affiliates	668			1,107			662			4			(2,441		)	—
Payments on borrowings from    affiliates	(800		)	(1,435		)	(17		)	(17		)	2,269			—
Capital contributions from affiliates	—			—			—			1			(1		)	—
Other intercompany financing activities	—			(63		)	(519		)	582			—			—
Cash dividends paid	(263		)	—			—			—			—			(263		)
Cash dividends paid to affiliates	—			—			(800		)	(707		)	1,507			—
Exercise of employee stock options	38			—			—			—			—			38
Repurchase of shares	(255		)	—			—			—			—			(255		)
Employee taxes paid from shares withheld	—			(13		)	(4		)	(3		)	—			(20		)
Other - net	—			—			(1		)	(2		)	—			(3		)
Net cash provided by (used in)    financing activities	(612		)	(460		)	(679		)	(146		)	1,334			(563		)
Effect of currency on cash	—			—			—			8			—			8
Total increase (decrease) in cash	(1		)	(49		)	(2		)	(269		)	—			(321		)
Cash at the beginning of the period	1			92			12			438			—			543
Cash at the end of the period	$	—		$	43		$	10		$	169		$	—		$	222

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BASIS OF PRESENTATION (Policies)

3 Months Ended

Mar. 31, 2018

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Accounting

The accompanying unaudited condensed consolidated financial statements of Eaton Corporation plc (Eaton or the Company) have been prepared in accordance with generally accepted accounting principles for interim financial information, the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by United States generally accepted accounting principles (US GAAP) for complete financial statements. However, in the opinion of management, all adjustments (consisting of normal recurring accruals) have been made that are necessary for a fair presentation of the condensed consolidated financial statements for the interim periods.

This Form 10-Q should be read in conjunction with the consolidated financial statements and related notes included in Eaton’s 2017 Form 10-K. The interim period results are not necessarily indicative of the results to be expected for the full year. Management has evaluated subsequent events through the date this Form 10-Q was filed with the Securities and Exchange Commission.

During the first quarter of 2018, Eaton re-segmented certain reportable operating segments due to a reorganization of the Company's businesses. The new reportable business segment is eMobility (which includes certain legacy Electrical Products and Vehicle product lines). For the reportable segments that were re-segmented, previously reported segment financial information has been updated for 2016 and 2017. See Note 13 for additional information related to these segments.

Reclassifications

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

Revenue Recognition, Policy

Revenue Recognition

Sales are recognized when control of promised goods or services are transferred to customers in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. Control is transferred when the customer has the ability to direct the use of and obtain benefits from the goods or services. The majority of the Company’s sales agreements contain performance obligations satisfied at a point in time when control is transferred to the customer. Sales recognized over time are generally accounted for using an input measure to determine progress completed at the end of the period. Sales for service contracts generally are recognized as the services are provided. For agreements with multiple performance obligations, judgment is required to determine whether performance obligations specified in these agreements are distinct and should be accounted for as separate revenue transactions for recognition purposes. In these types of agreements, we generally allocate sales price to each distinct obligation based on the price of each item sold in separate transactions.

Payment terms vary by the type and location of the customer and the products or services offered. Generally, the time between when revenue is recognized and payment is due is not significant. Eaton does not evaluate whether the selling price includes a financing interest component for contracts that are less than a year. Sales, value add, and other taxes collected concurrent with revenue are excluded from sales. Shipping and handling costs are treated as fulfillment costs and are included in Cost of products sold.

Eaton records reductions to sales for returns, and 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. Returns are estimated at the time of the sale primarily based on historical experience and recorded gross on the Consolidated Balance Sheet. See Note 3 for additional information.

Adoption of ASU 2014-09

Adoption of New Accounting Standards

Eaton adopted Accounting Standard Update 2014-09, Revenue from Contracts with Customers, at the start of the first quarter of 2018 using the modified retrospective approach and recorded a cumulative effect adjustment to retained earnings based on the current terms and conditions for open contracts as of January 1, 2018. The adoption of the standard did not have a material impact on the Company’s Consolidated financial statements. The comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods.

Consolidated Balance Sheet		Balance at December 31, 2017		Adjustments due to ASU 2014-09			Balance at January 1, 2018
Assets
	Accounts receivable - net	$	3,943	$	(99	)	$	3,844
	Prepaid expenses and other current assets	679		129			808
	Deferred income taxes	253		1			254
Liabilities and shareholders' equity
	Other current liabilities	$	1,872	$	33		$	1,905
	Eaton shareholders' equity	17,253		(2		)	17,251

Adoption of ASU 2016-16

Eaton adopted Accounting Standards Update 2016-16, Intra-Entity Transfers of Assets Other Than Inventory (ASU 2016-16), at the start of the first quarter of 2018. This accounting standard requires companies to recognize the income tax effects of intercompany sales and transfers of assets other than inventory in the period in which the transfer occurs. The previous accounting standard required companies to defer the income tax effects of intercompany transfers of assets by recording a prepaid tax, until such assets were sold to an outside party or otherwise recognized. ASU 2016-16 requires companies to write off any income tax amounts that had been deferred as prepaid taxes from past intercompany transactions, and record deferred tax balances for amounts that have not been recognized, through a cumulative-effect adjustment to retained earnings. Upon adoption, the Company recorded a cumulative-effect adjustment of $199 to reduce retained earnings.

Adoption of ASU 2017-17

Eaton adopted Accounting Standards Update 2017-07, Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost (ASU 2017-07), at the start of the first quarter of 2018. The new standard requires companies to present service costs consistent with other employee compensation costs on the income statement and separate from all other elements of pension costs. The retrospective adoption of this standard resulted in a reduction in selling and administrative expense with a corresponding decrease in Other income - net of $1 and $9 for the three months ended March 31, 2018 and 2017, respectively.

Recently Issued Accounting Pronouncements

Recently Issued Accounting Pronouncement

In February 2016, the FASB issued Accounting Standards Update 2016-02, Leases (Topic 842), (ASU 2016-02). This accounting standard requires that a lessee recognize a lease asset and a lease liability on its balance sheet for all leases, including operating leases, with a term greater than 12 months. ASU 2016-02 will require additional disclosures in the notes to the consolidated financial statements and is effective for annual and interim reporting periods beginning after December 15, 2018. A project team has been formed to evaluate and implement the new standard. The project team is working to gather the data required to account for leases under the new standard, and validating the functionality of third-party lease accounting software. In addition, the Company is in the process of identifying and implementing the appropriate changes to business processes and controls to support recognition and disclosure under the new standard. Eaton plans to adopt the standard as of the first quarter of 2019. Eaton is evaluating the impact of ASU 2016-02 and an estimate of the impact to the consolidated financial statements cannot be made at this time.

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BASIS OF PRESENTATION (Tables)

3 Months Ended

Mar. 31, 2018

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule of the Impact of Adoption of ASU 2014-09

Consolidated Balance Sheet		Balance at December 31, 2017		Adjustments due to ASU 2014-09			Balance at January 1, 2018
Assets
	Accounts receivable - net	$	3,943	$	(99	)	$	3,844
	Prepaid expenses and other current assets	679		129			808
	Deferred income taxes	253		1			254
Liabilities and shareholders' equity
	Other current liabilities	$	1,872	$	33		$	1,905
	Eaton shareholders' equity	17,253		(2		)	17,251

In accordance with the new revenue accounting requirements, the impact of the adoption on the financial statement line items within the accompanying financial statements was as follows:

	Three months ended March 31, 2018
Consolidated Statements of Income	As Reported		Adjustment			Balances without Adoption of ASC 606
Net sales	$	5,251	$	(7	)	$	5,244
Cost of products sold	3,573		(4		)	3,569
Income before income taxes	565		(3		)	562
Income tax expense	78		(1		)	77
Net income	487		(2		)	485
Net income attributable to Eaton ordinary shareholders	$	488	$	(2	)	$	486

	March 31, 2018
Condensed Consolidated Balance Sheets	As Reported		Adjustment			Balances without Adoption of ASC 606
Assets
Accounts receivable - net	$	4,005	$	107		$	4,112
Inventory	2,745		3			2,748
Prepaid expenses and other current assets	552		(139		)	413
Deferred income taxes	356		(1		)	355
Liabilities
Other current liabilities	$	1,861	$	(30	)	$	1,831

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ACQUISITION INTEGRATION CHARGES (Tables)

3 Months Ended

Mar. 31, 2018

Acquisitions Integration Charges [Abstract]

Acquisition Integration Charges

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

	Three months ended March 31
	2018		2017
Electrical Products	$	—	$	1
Total acquisition integration charges before income taxes	—		1
Income taxes	—		—
Total after income taxes	$	—	$	1
Per ordinary share - diluted	$	—	$	—

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REVENUE RECOGNITION (Tables)

3 Months Ended

Mar. 31, 2018

Revenue from Contract with Customer [Abstract]

Schedule of Disaggregation of Sales

Net sales	United States		Rest of world		Total
Electrical Products	$	960	$	772	$	1,732
Electrical Systems and Services	894		487		1,381
Hydraulics	297		413		710
	Original Equipment Manufacturers		Aftermarket, Distribution and End User
Aerospace	$	264	$	194	458
	Commercial		Passenger and Light Duty
Vehicle	$	430	$	463	893
eMobility					77
Total					$	5,251

Schedule of Changes in Deferred Revenue Liabilities

Changes in the deferred revenue liabilities are as follows:

	Deferred Revenue
Balance at January 1, 2018	$	227
Customer deposits and billings	232
Revenue recognized in the period	(209		)
Translation	1
Balance at March 31, 2018	$	251

Schedule of the Impact of Adoption of ASU 2014-09

Consolidated Balance Sheet		Balance at December 31, 2017		Adjustments due to ASU 2014-09			Balance at January 1, 2018
Assets
	Accounts receivable - net	$	3,943	$	(99	)	$	3,844
	Prepaid expenses and other current assets	679		129			808
	Deferred income taxes	253		1			254
Liabilities and shareholders' equity
	Other current liabilities	$	1,872	$	33		$	1,905
	Eaton shareholders' equity	17,253		(2		)	17,251

In accordance with the new revenue accounting requirements, the impact of the adoption on the financial statement line items within the accompanying financial statements was as follows:

	Three months ended March 31, 2018
Consolidated Statements of Income	As Reported		Adjustment			Balances without Adoption of ASC 606
Net sales	$	5,251	$	(7	)	$	5,244
Cost of products sold	3,573		(4		)	3,569
Income before income taxes	565		(3		)	562
Income tax expense	78		(1		)	77
Net income	487		(2		)	485
Net income attributable to Eaton ordinary shareholders	$	488	$	(2	)	$	486

	March 31, 2018
Condensed Consolidated Balance Sheets	As Reported		Adjustment			Balances without Adoption of ASC 606
Assets
Accounts receivable - net	$	4,005	$	107		$	4,112
Inventory	2,745		3			2,748
Prepaid expenses and other current assets	552		(139		)	413
Deferred income taxes	356		(1		)	355
Liabilities
Other current liabilities	$	1,861	$	(30	)	$	1,831

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RESTRUCTURING CHARGES (Tables)

3 Months Ended

Mar. 31, 2018

Restructuring and Related Activities [Abstract]

Restructuring Liability Rollforward

A summary of liabilities related to workforce reductions, plant closings and other associated costs announced as part of this program follows:

	Workforce reductions			Plant closings and other			Total
Balance at December 31, 2016	$	113		$	1		$	114
Liability recognized	57			59			116
Payments	(102		)	(39		)	(141		)
Other adjustments	(1		)	(16		)	(17		)
Balance at December 31, 2017	67			5			72
Payments	(13		)	(3		)	(16		)
Other adjustments	(8		)	—			(8		)
Balance at March 31, 2018	$	46		$	2		$	48

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GOODWILL (Tables)

3 Months Ended

Mar. 31, 2018

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Goodwill

Change in the carrying amount of goodwill by segment follows:

	December 31, 2017		Translation		March 31, 2018
Electrical Products	$	6,678	$	77	$	6,755
Electrical Systems and Services	4,311		42		4,353
Hydraulics	1,257		5		1,262
Aerospace	947		4		951
Vehicle	294		1		295
eMobility	81		1		82
Total	$	13,568	$	130	$	13,698

Eaton re-segmented certain reportable operating segments due to a reorganization of the Company's businesses. The new reportable business segment is eMobility (which includes certain legacy Electrical Products and Vehicle product lines). The Company used the relative fair value method to reallocate goodwill to the associated reporting units.

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RETIREMENT BENEFIT PLANS (Tables)

3 Months Ended

Mar. 31, 2018

Retirement Benefits [Abstract]

Retirement Benefits Plans Expense

The components of retirement benefits expense follow:

	United States pension benefit expense						Non-United States pension benefit expense						Other postretirement benefits expense
	Three months ended March 31
	2018			2017			2018			2017			2018			2017
Service cost	$	25		$	24		$	16		$	17		$	1		$	1
Interest cost	30			31			14			13			3			3
Expected return on plan assets	(63		)	(61		)	(27		)	(23		)	(1		)	(1		)
Amortization	24			20			10			13			(3		)	(3		)
	16			14			13			20			—			—
Settlements	14			17			—			—			—			—
Total expense	$	30		$	31		$	13		$	20		$	—		$	—

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EQUITY (Tables)

3 Months Ended

Mar. 31, 2018

Stockholders' Equity Note [Abstract]

Changes in Shareholders' equity

The changes in Shareholders’ equity follow:

	Eaton shareholders’ equity			Noncontrolling interests			Total equity
Balance at December 31, 2017	$	17,253		$	37		$	17,290
Cumulative-effect adjustment upon adoption of ASU 2014-09	(2		)	—			(2		)
Cumulative-effect adjustment upon adoption of ASU 2016-16	(199		)	—			(199		)
Net income (loss)	488			(1		)	487
Other comprehensive income	296			—			296
Cash dividends paid and accrued	(290		)	—			(290		)
Issuance of shares under equity-based compensation plans - net	17			—			17
Repurchase of shares	(300		)	—			(300		)
Changes in noncontrolling interest - net	—			2			2
Balance at March 31, 2018	$	17,263		$	38		$	17,301

Schedule of Accumulated Other Comprehensive Loss

The changes in Accumulated other comprehensive loss follow:

	Currency translation and related hedging instruments			Pensions and other postretirement benefits			Cash flow hedges			Total
Balance at December 31, 2017	$	(2,255	)	$	(1,139	)	$	(10	)	$	(3,404	)
Other comprehensive (loss) income    before reclassifications	257			(12		)	10			255
Amounts reclassified from Accumulated other    comprehensive loss (income)	—			38			3			41
Net current-period Other comprehensive    income (loss)	257			26			13			296
Balance at March 31, 2018	$	(1,998	)	$	(1,113	)	$	3		$	(3,108	)

Reclassification Out of Accumulated Other Comprehensive Loss

The reclassifications out of Accumulated other comprehensive loss follow:

	Three months ended March 31, 2018				Consolidated statements of income classification
Amortization of defined benefit pensions and other postretirement benefits items
Actuarial loss and prior service cost	$	(45	)	1
Tax benefit	7
Total, net of tax	(38		)
Gains and (losses) on cash flow hedges
Currency exchange contracts	(4		)		Cost of products sold
Tax benefit	1
Total, net of tax	(3		)
Total reclassifications for the period	$	(41	)

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

Calculation of Net Income Per Ordinary Share Attributable to Shareholders

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

	Three months ended March 31
(Shares in millions)	2018		2017
Net income attributable to Eaton ordinary shareholders	$	488	$	434
Weighted-average number of ordinary shares outstanding - diluted	441.7		451.0
Less dilutive effect of equity-based compensation	2.9		2.2
Weighted-average number of ordinary shares outstanding - basic	438.8		448.8
Net income per share attributable to Eaton ordinary shareholders
Diluted	$	1.10	$	0.96
Basic	1.11		0.97

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FAIR VALUE MEASUREMENTS (Tables)

3 Months Ended

Mar. 31, 2018

Fair Value Disclosures [Abstract]

Summary of Financial Instruments Recognized at Fair Value and Fair Value Measurement Used

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

	Total			Level 1		Level 2			Level 3
March 31, 2018
Cash	$	317		$	317	$	—		$	—
Short-term investments	510			510		—			—
Net derivative contracts	(13		)	—		(13		)	—
December 31, 2017
Cash	$	561		$	561	$	—		$	—
Short-term investments	534			534		—			—
Net derivative contracts	36			—		36			—

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DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES (Tables)

3 Months Ended

Mar. 31, 2018

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Financial Instruments Recognized in Condensed Consolidated Balance Sheet

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

	Notional amount		Other  current assets		Other noncurrent assets		Other current liabilities		Other noncurrent liabilities		Type of hedge	Term
March 31, 2018
Derivatives designated as hedges
Fixed-to-floating interest rate  swaps	$	2,965	$	—	$	21	$	2	$	37	Fair value	2 months to 17 years
Currency exchange contracts	990		9		13		15		1		Cash flow	1 to 36 months
Total			$	9	$	34	$	17	$	38
Derivatives not designated as  hedges
Currency exchange contracts	$	3,543	$	19			$	20				1 to 12 months
Commodity contracts	17		—				—					1 to 12 months
Total			$	19			$	20
December 31, 2017
Derivatives designated as hedges
Fixed-to-floating interest rate  swaps	$	2,965	$	1	$	41	$	—	$	17	Fair value	6 months to 17 years
Currency exchange contracts	924		7		7		22		2		Cash flow	1 to 36 months
Total			$	8	$	48	$	22	$	19
Derivatives not designated as  hedges
Currency exchange contracts	$	3,719	$	39			$	19				1 to 12 months
Commodity contracts	13		1				—					1 to 12 months
Total			$	40			$	19

Amounts Recognized in Accumulated Other Comprehensive Loss

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

	Gain (loss) recognized in other comprehensive (loss) income					Location of gain (loss) reclassified from Accumulated other comprehensive loss	Gain (loss) reclassified from Accumulated other comprehensive loss
	Three months ended March 31						Three months ended March 31
	2018		2017				2018			2017
Derivatives designated as    cash flow hedges
Currency exchange contracts	$	13	$	(1	)	Cost of products sold	$	(4	)	$	(4	)
Total	$	13	$	(1	)		$	(4	)	$	(4	)

Amounts recognized in Net Income

Amounts recognized in net income follow:

	Three months ended March 31
	2018			2017
Derivatives designated as fair value hedges
Fixed-to-floating interest rate swaps	$	(43	)	$	(11	)
Related long-term debt converted to floating interest    rates by interest rate swaps	43			11
	$	—		$	—

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INVENTORY (Tables)

3 Months Ended

Mar. 31, 2018

Inventory Disclosure [Abstract]

Components of Inventory

The components of inventory follow:

	March 31, 2018		December 31, 2017
Raw materials	$	1,019	$	953
Work-in-process	523		471
Finished goods	1,203		1,196
Total inventory	$	2,745	$	2,620

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BUSINESS SEGMENT INFORMATION (Tables)

3 Months Ended

Mar. 31, 2018

Segment Reporting [Abstract]

Business Segment Information

	Three months ended March 31
	2018			2017
Net sales
Electrical Products	$	1,732		$	1,651
Electrical Systems and Services	1,381			1,333
Hydraulics	710			587
Aerospace	458			428
Vehicle	893			786
eMobility	77			63
Total net sales	$	5,251		$	4,848
Segment operating profit
Electrical Products	$	307		$	286
Electrical Systems and Services	167			155
Hydraulics	90			60
Aerospace	89			79
Vehicle	132			108
eMobility	11			11
Total segment operating profit	796			699
Corporate
Amortization of intangible assets	(98		)	(94		)
Interest expense - net	(70		)	(61		)
Pension and other postretirement benefits expense	(2		)	(11		)
Other corporate expense - net	(61		)	(66		)
Income before income taxes	565			467
Income tax expense	78			33
Net income	487			434
Less net loss for noncontrolling interests	1			—
Net income attributable to Eaton ordinary shareholders	$	488		$	434

Electrical Products

	Year ended December 31, 2017			Quarter ended in 2017												Year ended December 31, 2016			Quarter ended in 2016
				Dec. 31			Sept. 30			June 30			Mar. 31						Dec. 31			Sept. 30			June 30			Mar. 31
Net sales	$	6,917		$	1,750		$	1,785		$	1,731		$	1,651		$	6,703		$	1,665		$	1,705		$	1,717		$	1,616
Operating profit	$	1,233		$	318		$	330		$	299		$	286		$	1,186		$	305		$	317		$	304		$	260
Operating margin	17.8		%	18.2		%	18.5		%	17.3		%	17.3		%	17.7		%	18.3		%	18.6		%	17.7		%	16.1		%
Acquisition integration charges	$	4		$	1		$	1		$	1		$	1		$	3		$	1		$	1		$	1		$	—
Before acquisition integration    charges
Operating profit	$	1,237		$	319		$	331		$	300		$	287		$	1,189		$	306		$	318		$	305		$	260
Operating margin	17.9		%	18.2		%	18.5		%	17.3		%	17.4		%	17.7		%	18.4		%	18.7		%	17.8		%	16.1		%

Vehicle

	Year ended December 31, 2017			Quarter ended in 2017												Year ended December 31, 2016			Quarter ended in 2016
				Dec. 31			Sept. 30			June 30			Mar. 31						Dec. 31			Sept. 30			June 30			Mar. 31
Net sales	$	3,326		$	837		$	858		$	845		$	786		$	3,141		$	739		$	784		$	825		$	793
Operating profit	$	541		$	142		$	150		$	141		$	108		$	471		$	97		$	122		$	135		$	117
Operating margin	16.3		%	17.0		%	17.5		%	16.7		%	13.7		%	15.0		%	13.1		%	15.6		%	16.4		%	14.8		%

eMobility

	Year ended December 31, 2017			Quarter ended in 2017												Year ended December 31, 2016			Quarter ended in 2016
				Dec. 31			Sept. 30			June 30			Mar. 31						Dec. 31			Sept. 30			June 30			Mar. 31
Net sales	$	283		$	73		$	75		$	72		$	63		$	266		$	63		$	64		$	73		$	66
Operating profit	$	50		$	10		$	16		$	13		$	11		$	57		$	11		$	14		$	20		$	12
Operating margin	17.7		%	13.7		%	21.3		%	18.1		%	17.5		%	21.4		%	17.5		%	21.9		%	27.4		%	18.2		%

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CONDENSED CONSOLIDATING FINANCIAL STATEMENTS (Tables)

3 Months Ended

Mar. 31, 2018

Condensed Consolidating Financial Information [Abstract]

Condensed Consolidating Financial Statements

CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME FOR THE THREE MONTHS ENDED MARCH 31, 2018
	Eaton Corporation plc			Eaton Corporation			Guarantors			Other subsidiaries			Consolidating adjustments			Total
Net sales	$	—		$	1,689		$	1,700		$	3,191		$	(1,329	)	$	5,251
Cost of products sold	—			1,352			1,236			2,310			(1,325		)	3,573
Selling and administrative expense	3			341			178			367			—			889
Research and development expense	—			39			41			76			—			156
Interest expense (income) - net	—			68			4			(1		)	(1		)	70
Other expense (income) - net	18			5			(9		)	(16		)	—			(2		)
Equity in loss (earnings) of    subsidiaries, net of tax	(514		)	(178		)	(829		)	(659		)	2,180			—
Intercompany expense (income) - net	5			(21		)	486			(470		)	—			—
Income (loss) before income taxes	488			83			593			1,584			(2,183		)	565
Income tax expense (benefit)	—			(6		)	(14		)	99			(1		)	78
Net income (loss)	488			89			607			1,485			(2,182		)	487
Less net loss (income) for    noncontrolling interests	—			—			—			1			—			1
Net income (loss) attributable to    Eaton ordinary shareholders	$	488		$	89		$	607		$	1,486		$	(2,182	)	$	488
Other comprehensive income (loss)	$	296		$	38		$	296		$	613		$	(947	)	$	296
Total comprehensive income   (loss) attributable to Eaton   ordinary shareholders	$	784		$	127		$	903		$	2,099		$	(3,129	)	$	784

CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME FOR THE THREE MONTHS ENDED MARCH 31, 2017
	Eaton Corporation plc			Eaton Corporation			Guarantors			Other subsidiaries			Consolidating adjustments			Total
Net sales	$	—		$	1,572		$	1,656		$	2,930		$	(1,310	)	$	4,848
Cost of products sold	—			1,251			1,228			2,140			(1,312		)	3,307
Selling and administrative expense	32			317			199			328			—			876
Research and development expense	—			54			49			40			—			143
Interest expense (income) - net	—			62			5			(5		)	(1		)	61
Other expense (income) - net	7			10			1			(24		)	—			(6		)
Equity in loss (earnings) of    subsidiaries, net of tax	(583		)	169			(790		)	(658		)	1,862			—
Intercompany expense (income) - net	110			(30		)	338			(418		)	—			—
Income (loss) before income taxes	434			(261		)	626			1,527			(1,859		)	467
Income tax expense (benefit)	—			(3		)	16			18			2			33
Net income (loss)	434			(258		)	610			1,509			(1,861		)	434
Less net loss (income) for    noncontrolling interests	—			—			—			(1		)	1			—
Net income (loss) attributable to    Eaton ordinary shareholders	$	434		$	(258	)	$	610		$	1,508		$	(1,860	)	$	434
Other comprehensive income (loss)	$	263		$	63		$	262		$	516		$	(841	)	$	263
Total comprehensive income    (loss) attributable to Eaton    ordinary shareholders	$	697		$	(195	)	$	872		$	2,024		$	(2,701	)	$	697

CONDENSED CONSOLIDATING BALANCE SHEETS MARCH 31, 2018
	Eaton Corporation plc		Eaton Corporation		Guarantors			Other subsidiaries		Consolidating adjustments			Total
Assets
Current assets
Cash	$	—	$	10	$	6		$	301	$	—		$	317
Short-term investments	—		—		—			510		—			510
Accounts receivable - net	—		453		1,407			2,145		—			4,005
Intercompany accounts    receivable	3		1,607		1,724			2,952		(6,286		)	—
Inventory	—		517		766			1,549		(87		)	2,745
Prepaid expenses and    other current assets	—		108		97			317		30			552
Total current assets	3		2,695		4,000			7,774		(6,343		)	8,129
Property, plant and    equipment - net	—		841		698			2,004		—			3,543
Other noncurrent assets
Goodwill	—		1,317		6,705			5,676		—			13,698
Other intangible assets	—		135		3,168			1,903		—			5,206
Deferred income taxes	—		360		3			298		(305		)	356
Investment in subsidiaries	15,651		9,742		54,848			23,602		(103,843		)	—
Intercompany loans receivable	3,122		3,235		5,313			64,992		(76,662		)	—
Other assets	—		741		166			829		—			1,736
Total assets	$	18,776	$	19,066	$	74,901		$	107,078	$	(187,153	)	$	32,668
Liabilities and    shareholders’ equity
Current liabilities
Short-term debt	$	—	$	90	$	—		$	95	$	—		$	185
Current portion of    long-term debt	—		844		2			1		—			847
Accounts payable	—		504		392			1,307		—			2,203
Intercompany accounts payable	6		1,388		3,243			1,649		(6,286		)	—
Accrued compensation	—		46		31			223		—			300
Other current liabilities	8		492		311			1,050		—			1,861
Total current liabilities	14		3,364		3,979			4,325		(6,286		)	5,396
Noncurrent liabilities
Long-term debt	—		5,841		995			9		—			6,845
Pension liabilities	—		333		88			804		—			1,225
Other postretirement    benefits liabilities	—		191		95			73		—			359
Deferred income taxes	—		—		605			257		(305		)	557
Intercompany loans payable	1,499		3,955		70,262			946		(76,662		)	—
Other noncurrent liabilities	—		330		270			385		—			985
Total noncurrent liabilities	1,499		10,650		72,315			2,474		(76,967		)	9,971
Shareholders’ equity
Eaton shareholders' equity	17,263		5,052		(1,393		)	100,241		(103,900		)	17,263
Noncontrolling interests	—		—		—			38		—			38
Total equity	17,263		5,052		(1,393		)	100,279		(103,900		)	17,301
Total liabilities and equity	$	18,776	$	19,066	$	74,901		$	107,078	$	(187,153	)	$	32,668

CONDENSED CONSOLIDATING BALANCE SHEETS DECEMBER 31, 2017
	Eaton Corporation plc		Eaton Corporation		Guarantors		Other subsidiaries		Consolidating adjustments			Total
Assets
Current assets
Cash	$	—	$	183	$	18	$	360	$	—		$	561
Short-term investments	—		—		—		534		—			534
Accounts receivable - net	—		482		1,376		2,085		—			3,943
Intercompany accounts    receivable	8		2,865		5,155		2,716		(10,744		)	—
Inventory	—		473		737		1,493		(83		)	2,620
Prepaid expenses and    other current assets	—		229		145		277		28			679
Total current assets	8		4,232		7,431		7,465		(10,799		)	8,337
Property, plant and    equipment - net	—		859		702		1,941		—			3,502
Other noncurrent assets
Goodwill	—		1,316		6,705		5,547		—			13,568
Other intangible assets	—		138		3,206		1,921		—			5,265
Deferred income taxes	—		356		6		215		(324		)	253
Investment in subsidiaries	15,045		9,503		75,379		39,848		(139,775		)	—
Intercompany loans receivable	3,122		7,105		2,909		61,427		(74,563		)	—
Other assets	—		748		166		784		—			1,698
Total assets	$	18,175	$	24,257	$	96,504	$	119,148	$	(225,461	)	$	32,623
Liabilities and    shareholders’ equity
Current liabilities
Short-term debt	$	—	$	—	$	—	$	6	$	—		$	6
Current portion of    long-term debt	—		542		35		1		—			578
Accounts payable	—		549		330		1,287		—			2,166
Intercompany accounts payable	4		4,917		4,418		1,405		(10,744		)	—
Accrued compensation	—		128		65		260		—			453
Other current liabilities	1		566		317		989		(1		)	1,872
Total current liabilities	5		6,702		5,165		3,948		(10,745		)	5,075
Noncurrent liabilities
Long-term debt	—		6,180		976		9		2			7,167
Pension liabilities	—		341		89		796		—			1,226
Other postretirement    benefits liabilities	—		192		96		74		—			362
Deferred income taxes	—		—		607		255		(324		)	538
Intercompany loans payable	917		3,808		68,685		1,153		(74,563		)	—
Other noncurrent liabilities	—		314		273		378		—			965
Total noncurrent liabilities	917		10,835		70,726		2,665		(74,885		)	10,258
Shareholders’ equity
Eaton shareholders' equity	17,253		6,720		20,613		112,498		(139,831		)	17,253
Noncontrolling interests	—		—		—		37		—			37
Total equity	17,253		6,720		20,613		112,535		(139,831		)	17,290
Total liabilities and equity	$	18,175	$	24,257	$	96,504	$	119,148	$	(225,461	)	$	32,623

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS FOR THE THREE MONTHS ENDED MARCH 31, 2018
	Eaton Corporation plc			Eaton Corporation			Guarantors			Other subsidiaries			Consolidating adjustments			Total
Net cash provided by (used in)    operating activities	$	2		$	(66	)	$	82		$	321		$	—		$	339
Investing activities
Capital expenditures for property,    plant and equipment	—			(23		)	(24		)	(84		)	—			(131		)
Sales (purchases) of short-term investments - net	—			—			—			31			—			31
Investments in affiliates	—			(36		)	—			—			36			—
Loans to affiliates	—			—			(486		)	(1,177		)	1,663			—
Repayments of loans from affiliates	—			16			886			1,299			(2,201		)	—
Other - net	—			(15		)	(4		)	(18		)	—			(37		)
Net cash provided by (used in) investing activities	—			(58		)	372			51			(502		)	(137		)
Financing activities
Proceeds from borrowings	—			90			—			89			—			179
Payments on borrowings	—			—			(33		)	—			—			(33		)
Proceeds from borrowings from    affiliates	585			1,050			28			—			(1,663		)	—
Payments on borrowings from    affiliates	(22		)	(1,409		)	(16		)	(754		)	2,201			—
Capital contributions from affiliates	—			—			—			36			(36		)	—
Other intercompany financing    activities	—			237			(441		)	204			—			—
Cash dividends paid	(284		)	—			—			—			—			(284		)
Exercise of employee stock options	19			—			—			—			—			19
Repurchase of shares	(300		)	—			—			—			—			(300		)
Employee taxes paid from shares withheld	—			(16		)	(4		)	(3		)	—			(23		)
Other - net	—			(1		)	—			—			—			(1		)
Net cash provided by (used in)    financing activities	(2		)	(49		)	(466		)	(428		)	502			(443		)
Effect of currency on cash	—			—			—			(3		)	—			(3		)
Total increase (decrease) in cash	—			(173		)	(12		)	(59		)	—			(244		)
Cash at the beginning of the period	—			183			18			360			—			561
Cash at the end of the period	$	—		$	10		$	6		$	301		$	—		$	317

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS FOR THE THREE MONTHS ENDED MARCH 31, 2017
	Eaton Corporation plc			Eaton Corporation			Guarantors			Other subsidiaries			Consolidating adjustments			Total
Net cash provided by (used in)    operating activities	$	611		$	430		$	733		$	196		$	(1,507	)	$	463
Investing activities
Capital expenditures for property,    plant and equipment	—			(20		)	(26		)	(70		)	—			(116		)
Sales (purchases) of short-term investments - net	—			—			—			(93		)	—			(93		)
Investments in affiliates	—			(1		)	—			—			1			—
Loans to affiliates	—			(6		)	(87		)	(2,348		)	2,441			—
Repayments of loans from affiliates	—			19			55			2,195			(2,269		)	—
Other - net	—			(11		)	2			(11		)	—			(20		)
Net cash provided by (used in)    investing activities	—			(19		)	(56		)	(327		)	173			(229		)
Financing activities
Proceeds from borrowings	—			194			—			—			—			194
Payments on borrowings	—			(250		)	—			(4		)	—			(254		)
Proceeds from borrowings from    affiliates	668			1,107			662			4			(2,441		)	—
Payments on borrowings from    affiliates	(800		)	(1,435		)	(17		)	(17		)	2,269			—
Capital contributions from affiliates	—			—			—			1			(1		)	—
Other intercompany financing activities	—			(63		)	(519		)	582			—			—
Cash dividends paid	(263		)	—			—			—			—			(263		)
Cash dividends paid to affiliates	—			—			(800		)	(707		)	1,507			—
Exercise of employee stock options	38			—			—			—			—			38
Repurchase of shares	(255		)	—			—			—			—			(255		)
Employee taxes paid from shares withheld	—			(13		)	(4		)	(3		)	—			(20		)
Other - net	—			—			(1		)	(2		)	—			(3		)
Net cash provided by (used in)    financing activities	(612		)	(460		)	(679		)	(146		)	1,334			(563		)
Effect of currency on cash	—			—			—			8			—			8
Total increase (decrease) in cash	(1		)	(49		)	(2		)	(269		)	—			(321		)
Cash at the beginning of the period	1			92			12			438			—			543
Cash at the end of the period	$	—		$	43		$	10		$	169		$	—		$	222

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BASIS OF PRESENTATION (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Jan. 01, 2018	Dec. 31, 2017
Assets
Accounts receivable - net	$ 4,005		$ 3,844	$ 3,943
Prepaid expenses and other current assets	552		808	679
Deferred income taxes	356		254	253
Liabilities and shareholders' equity
Other current liabilities	1,861		1,905	1,872
Eaton shareholders' equity	17,263		17,251	17,253
Reduction in selling and administrative expense	(889)	$ (876)
Corresponding decrease in Other income - net	(2)	(6)
Cumulative-effect adjustment upon adoption	(2)
Calculated under Revenue Guidance in Effect before Topic 606
Assets
Accounts receivable - net	4,112			3,943
Prepaid expenses and other current assets	413			679
Deferred income taxes	355			253
Liabilities and shareholders' equity
Other current liabilities	1,831			1,872
Eaton shareholders' equity				$ 17,253
Accounting Standards Update 2016-16 [Member]
Liabilities and shareholders' equity
Cumulative-effect adjustment upon adoption			199
ASU 2014-09 | Difference between Revenue Guidance in Effect before and after Topic 606
Assets
Accounts receivable - net			(99)
Prepaid expenses and other current assets			129
Deferred income taxes			1
Liabilities and shareholders' equity
Other current liabilities			33
Eaton shareholders' equity			$ (2)
ASU 2017-07
Liabilities and shareholders' equity
Reduction in selling and administrative expense	1	9
Corresponding decrease in Other income - net	1	$ 9
ASU 2017-07 | Difference between Revenue Guidance in Effect before and after Topic 606
Assets
Accounts receivable - net	107
Prepaid expenses and other current assets	(139)
Deferred income taxes	(1)
Liabilities and shareholders' equity
Other current liabilities	$ (30)

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ACQUISITION AND INTEGRATION CHARGES (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Acquisition integration charges [Line Items]
Acquisition integration charges	$ 0	$ 1
Income taxes	0	0
Total after income taxes	$ 0	$ 1
Per ordinary share - diluted (dollars per share)	$ 0.00	$ 0.00
Electrical Products [Member]
Acquisition integration charges [Line Items]
Acquisition integration charges	$ 0	$ 1

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REVENUE RECOGNITION - Narrative (Details) $ in Millions	3 Months Ended
	Mar. 31, 2018 USD ($) segment	Jan. 01, 2018 USD ($)	Dec. 31, 2017 USD ($)
Revenue from Contract with Customer [Abstract]
Sales recognized over time, as a percent of Consolidated Net Sales (less than)	5.00%
Number of operating segments | segment	6
Accounts receivables from customers	$ 3,520		$ 3,399
Unbilled receivables	129	$ 117
Backlog of unsatisfied or partially satisfied obligations	$ 5,200
Backlog expected to be recognized in the next twelve months (as a percent)	88.00%

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REVENUE RECOGNITION - Schedule of Disaggregation of Sales (Details) $ in Millions	3 Months Ended
	Mar. 31, 2018 USD ($)
Disaggregation of Revenue [Line Items]
Net sales	$ 5,251
Electrical Products [Member]
Disaggregation of Revenue [Line Items]
Net sales	1,732
Electrical Products [Member] | United States [Member]
Disaggregation of Revenue [Line Items]
Net sales	960
Electrical Products [Member] | Rest of world [Member]
Disaggregation of Revenue [Line Items]
Net sales	772
Electrical Systems and Services [Member]
Disaggregation of Revenue [Line Items]
Net sales	1,381
Electrical Systems and Services [Member] | United States [Member]
Disaggregation of Revenue [Line Items]
Net sales	894
Electrical Systems and Services [Member] | Rest of world [Member]
Disaggregation of Revenue [Line Items]
Net sales	487
Hydraulics [Member]
Disaggregation of Revenue [Line Items]
Net sales	710
Hydraulics [Member] | United States [Member]
Disaggregation of Revenue [Line Items]
Net sales	297
Hydraulics [Member] | Rest of world [Member]
Disaggregation of Revenue [Line Items]
Net sales	413
Aerospace [Member]
Disaggregation of Revenue [Line Items]
Net sales	458
Aerospace [Member] | Original Equipment Manufacturers [Member]
Disaggregation of Revenue [Line Items]
Net sales	264
Aerospace [Member] | Aftermarket, Distribution and End User [Member]
Disaggregation of Revenue [Line Items]
Net sales	194
Vehicle [Member]
Disaggregation of Revenue [Line Items]
Net sales	893
Vehicle [Member] | Commercial [Member]
Disaggregation of Revenue [Line Items]
Net sales	430
Vehicle [Member] | Passenger and Light Duty [Member]
Disaggregation of Revenue [Line Items]
Net sales	463
eMobility [Member]
Disaggregation of Revenue [Line Items]
Net sales	$ 77

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REVENUE RECOGNITION - Schedule of Changes in Deferred Revenue Liabilities (Details) $ in Millions	3 Months Ended
	Mar. 31, 2018 USD ($)
Movement in Deferred Revenue [Roll Forward]
Beginning balance	$ 227
Customer deposits and billings	232
Revenue recognized in the period	(209)
Translation	1
Ending balance	$ 251

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REVENUE RECOGNITION - Schedule of the Impact of Adoption of ASU 2014-09 (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Jan. 01, 2018	Dec. 31, 2017
Consolidated Statements of Income
Net sales	$ 5,251	$ 4,848
Cost of products sold	3,573	3,307
Income before income taxes	565	467
Income tax expense	78	33
Net income	487	434
Net income attributable to Eaton ordinary shareholders	488	$ 434
Assets
Accounts receivable - net	4,005		$ 3,844	$ 3,943
Inventory	2,745			2,620
Prepaid expenses and other current assets	552		808	679
Deferred income taxes	356		254	253
Liabilities
Other current liabilities	1,861		$ 1,905	1,872
Difference between Revenue Guidance in Effect before and after Topic 606 | Adjustment
Consolidated Statements of Income
Net sales	(7)
Cost of products sold	(4)
Income before income taxes	(3)
Income tax expense	(1)
Net income	(2)
Net income attributable to Eaton ordinary shareholders	(2)
Assets
Accounts receivable - net	107
Inventory	3
Prepaid expenses and other current assets	(139)
Deferred income taxes	(1)
Liabilities
Other current liabilities	(30)
Calculated under Revenue Guidance in Effect before Topic 606
Consolidated Statements of Income
Net sales	5,244
Cost of products sold	3,569
Income before income taxes	562
Income tax expense	77
Net income	485
Net income attributable to Eaton ordinary shareholders	486
Assets
Accounts receivable - net	4,112			3,943
Inventory	2,748
Prepaid expenses and other current assets	413			679
Deferred income taxes	355			253
Liabilities
Other current liabilities	$ 1,831			$ 1,872

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RESTRUCTURING CHARGES - Restructuring Roll Forward (Details) - USD ($) $ in Millions	3 Months Ended	12 Months Ended
	Mar. 31, 2018	Dec. 31, 2017
Restructuring Reserve [Roll Forward]
Beginning balance	$ 72	$ 114
Liability recognized		116
Payments	(16)	(141)
Other adjustments	(8)	(17)
Ending balance	48	72
Workforce reductions [Member]
Restructuring Reserve [Roll Forward]
Beginning balance	67	113
Liability recognized		57
Payments	(13)	(102)
Other adjustments	(8)	(1)
Ending balance	46	67
Plant closings and other [Member]
Restructuring Reserve [Roll Forward]
Beginning balance	5	1
Liability recognized		59
Payments	(3)	(39)
Other adjustments	0	(16)
Ending balance	$ 2	$ 5

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GOODWILL (Details) $ in Millions	3 Months Ended
	Mar. 31, 2018 USD ($)
Goodwill [Roll Forward]
Beginning balance	$ 13,568
Translation	130
Ending balance	13,698
Electrical Products [Member]
Goodwill [Roll Forward]
Beginning balance	6,678
Translation	77
Ending balance	6,755
Electrical Systems and Services [Member]
Goodwill [Roll Forward]
Beginning balance	4,311
Translation	42
Ending balance	4,353
Hydraulics [Member]
Goodwill [Roll Forward]
Beginning balance	1,257
Translation	5
Ending balance	1,262
Aerospace [Member]
Goodwill [Roll Forward]
Beginning balance	947
Translation	4
Ending balance	951
Vehicle [Member]
Goodwill [Roll Forward]
Beginning balance	294
Translation	1
Ending balance	295
eMobility [Member]
Goodwill [Roll Forward]
Beginning balance	81
Translation	1
Ending balance	$ 82

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RETIREMENT BENEFIT PLANS (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Pension plan | United States pension benefit expense
Retirement benefits plans expense
Service cost	$ 25	$ 24
Interest cost	30	31
Expected return on plan assets	(63)	(61)
Amortization	24	20
Total	16	14
Settlements and other	14	17
Total expense	30	31
Pension plan | Non-United States pension benefit expense
Retirement benefits plans expense
Service cost	16	17
Interest cost	14	13
Expected return on plan assets	(27)	(23)
Amortization	10	13
Total	13	20
Settlements and other	0	0
Total expense	13	20
Other postretirement benefits expense
Retirement benefits plans expense
Service cost	1	1
Interest cost	3	3
Expected return on plan assets	(1)	(1)
Amortization	(3)	(3)
Total	0	0
Settlements and other	0	0
Total expense	$ 0	$ 0

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LEGAL CONTINGENCIES (Details) $ in Millions	Oct. 20, 2017 USD ($)
Commitments and Contingencies Disclosure [Abstract]
Loss Contingency, Damages Sought, Value	$ 440

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INCOME TAXES (Details)	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Income Tax Disclosure [Abstract]
Effective tax rate	13.80%	7.00%

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EQUITY - Changes in Shareholders's Equity (Details) - USD ($) shares in Millions, $ in Millions	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Jan. 01, 2018
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance at December 31, 2017	$ 17,290
Cumulative-effect adjustment upon adoption of ASU 2014-09	(2)
Cumulative-effect adjustment upon adoption of ASU 2016-16	(199)
Net income (loss)	487	$ 434
Other comprehensive income	296	$ 263
Cash dividends paid and accrued	(290)
Issuance of shares under equity-based compensation plans - net	17
Repurchase of shares	(300)
Changes in noncontrolling interest - net	2
Balance at March 31, 2018	17,301
Parent [Member]
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance at December 31, 2017	17,253
Cumulative-effect adjustment upon adoption of ASU 2014-09	(2)
Cumulative-effect adjustment upon adoption of ASU 2016-16	(199)
Net income (loss)	488
Other comprehensive income	296
Cash dividends paid and accrued	(290)
Issuance of shares under equity-based compensation plans - net	17
Repurchase of shares	(300)
Changes in noncontrolling interest - net	0
Balance at March 31, 2018	17,263
Noncontrolling Interest [Member]
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance at December 31, 2017	37
Cumulative-effect adjustment upon adoption of ASU 2014-09	0
Cumulative-effect adjustment upon adoption of ASU 2016-16	0
Net income (loss)	(1)
Other comprehensive income	0
Cash dividends paid and accrued	0
Issuance of shares under equity-based compensation plans - net	0
Repurchase of shares	0
Changes in noncontrolling interest - net	2
Balance at March 31, 2018	$ 38
2016 Program [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Ordinary shares purchased (in shares)	3.7	3.6
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Repurchase of shares	$ (300)	$ (255)
Accounting Standards Update 2016-16 [Member]
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Cumulative-effect adjustment upon adoption of ASU 2014-09			$ 199

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EQUITY - Changes in Accumulated Other Comprehensive (Loss) Income (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Amounts reclassified from Accumulated other comprehensive loss (income)	$ 41
Net current-period Other comprehensive income (loss)	296	$ 263
Currency translation and related hedging instruments [Member]
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(2,255)
Other comprehensive (loss) income before reclassifications	257
Amounts reclassified from Accumulated other comprehensive loss (income)	0
Net current-period Other comprehensive income (loss)	257
Ending balance	(1,998)
Pensions and other postretirement benefits [Member]
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(1,139)
Other comprehensive (loss) income before reclassifications	(12)
Amounts reclassified from Accumulated other comprehensive loss (income)	38
Net current-period Other comprehensive income (loss)	26
Ending balance	(1,113)
Cash flow hedges [Member]
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(10)
Other comprehensive (loss) income before reclassifications	10
Amounts reclassified from Accumulated other comprehensive loss (income)	3
Net current-period Other comprehensive income (loss)	13
Ending balance	3
Total AOCI Attributable to Parent [Member]
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(3,404)
Other comprehensive (loss) income before reclassifications	255
Amounts reclassified from Accumulated other comprehensive loss (income)	41
Net current-period Other comprehensive income (loss)	296
Ending balance	$ (3,108)

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EQUITY - Reclassifications Out of Accumulated Other Comprehensive Loss (Details) $ in Millions	3 Months Ended
	Mar. 31, 2018 USD ($)
Stockholders' Equity Note [Abstract]
Actuarial loss and prior service cost	$ (45)	[1]
Tax benefit	7
Total, net of tax	(38)
Currency exchange contracts	(4)
Tax benefit	1
Total, net of tax	(3)
Total reclassifications for the period	$ (41)

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

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EQUITY - Calculation of Net Income per Ordinary Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Calculation of net income per ordinary share attributable to ordinary shareholders
Net income attributable to Eaton ordinary shareholders	$ 488	$ 434
Weighted-average number of ordinary shares outstanding - diluted (shares)	441.7	451.0
Less dilutive effect of equity-based compensation (shares)	(2.9)	(2.2)
Weighted-average number of ordinary shares outstanding - basic (shares)	438.8	448.8
Net income per share attributable to Eaton ordinary shareholders
Diluted (usd per share)	$ 1.10	$ 0.96
Basic (usd per share)	$ 1.11	$ 0.97
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	0.1	1.2

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FAIR VALUE MEASUREMENTS - Summary of Financial Instruments at Fair Value (Details) - USD ($) $ in Millions	Mar. 31, 2018	Dec. 31, 2017	Mar. 31, 2017	Dec. 31, 2016
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items]
Cash	$ 317	$ 561	$ 222	$ 543
Short-term investments	510	534
Net derivative contracts	(13)	36
Level 1 [Member]
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items]
Cash	317	561
Short-term investments	510	534
Net derivative contracts	0	0
Level 2 [Member]
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items]
Cash	0	0
Short-term investments	0	0
Net derivative contracts	(13)	36
Level 3 [Member]
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items]
Cash	0	0
Short-term investments	0	0
Net derivative contracts	$ 0	$ 0

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FAIR VALUE MEASUREMENTS - Other Fair Value Measurements (Details) - Level 2 [Member] - USD ($) $ in Millions	Mar. 31, 2018	Dec. 31, 2017
Other Fair Value Measurements [Line Items]
Carrying value of long-term debt and current portion of long-term debt	$ 7,692	$ 7,745
Fair value of long-term debt and current portion of long-term debt	$ 7,790	$ 8,048

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DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES - Derivative Financial Instrument Recognized in the Consolidated Balance sheet (Details) - USD ($) $ in Millions	3 Months Ended	12 Months Ended
	Mar. 31, 2018	Dec. 31, 2017
Derivatives, Fair Value [Line Items]
Foreign Currency Note Payable, Noncurrent, after-tax	$ 94	$ 88
Foreign Currency Note Payable, Noncurrent, pre-tax	$ 670	652
Derivatives not designated as hedges
Percentage of intercompany balance sheet exposure	100.00%
Other current assets [Member]
Derivatives designated as hedges
Derivative asset designated as hedging instrument	$ 9	8
Derivatives not designated as hedges
Derivative instruments not designated as hedging instruments, asset, at fair value	19	40
Other noncurrent assets [Member]
Derivatives designated as hedges
Derivative asset designated as hedging instrument	34	48
Other current liabilities [Member]
Derivatives designated as hedges
Derivative liability designated as hedging instrument	17	22
Derivatives not designated as hedges
Derivative instruments not designated as hedging instruments, liability, at fair value	20	19
Other noncurrent liabilities [Member]
Derivatives designated as hedges
Derivative liability designated as hedging instrument	38	19
Currency exchange contracts [Member] | Other current assets [Member]
Derivatives not designated as hedges
Derivative instruments not designated as hedging instruments, asset, at fair value	19	39
Currency exchange contracts [Member] | Other current liabilities [Member]
Derivatives not designated as hedges
Derivative instruments not designated as hedging instruments, liability, at fair value	20	19
Commodity contracts [Member] | Other current assets [Member]
Derivatives not designated as hedges
Derivative instruments not designated as hedging instruments, asset, at fair value	0	1
Commodity contracts [Member] | Other current liabilities [Member]
Derivatives not designated as hedges
Derivative instruments not designated as hedging instruments, liability, at fair value	0	0
Derivatives designated as hedges [Member] | Fair value hedging [Member] | Fixed-to-floating interest rate swaps [Member]
Derivatives designated as hedges
Notional amount	2,965	2,965
Derivatives designated as hedges [Member] | Fair value hedging [Member] | Fixed-to-floating interest rate swaps [Member] | Other current assets [Member]
Derivatives designated as hedges
Derivative asset designated as hedging instrument	0	1
Derivatives designated as hedges [Member] | Fair value hedging [Member] | Fixed-to-floating interest rate swaps [Member] | Other noncurrent assets [Member]
Derivatives designated as hedges
Derivative asset designated as hedging instrument	21	41
Derivatives designated as hedges [Member] | Fair value hedging [Member] | Fixed-to-floating interest rate swaps [Member] | Other current liabilities [Member]
Derivatives designated as hedges
Derivative liability designated as hedging instrument	2	0
Derivatives designated as hedges [Member] | Fair value hedging [Member] | Fixed-to-floating interest rate swaps [Member] | Other noncurrent liabilities [Member]
Derivatives designated as hedges
Derivative liability designated as hedging instrument	37	17
Derivatives designated as hedges [Member] | Cash Flow Hedging [Member] | Currency exchange contracts [Member]
Derivatives designated as hedges
Notional amount	990	924
Derivatives designated as hedges [Member] | Cash Flow Hedging [Member] | Currency exchange contracts [Member] | Other current assets [Member]
Derivatives designated as hedges
Derivative asset designated as hedging instrument	9	7
Derivatives designated as hedges [Member] | Cash Flow Hedging [Member] | Currency exchange contracts [Member] | Other noncurrent assets [Member]
Derivatives designated as hedges
Derivative asset designated as hedging instrument	13	7
Derivatives designated as hedges [Member] | Cash Flow Hedging [Member] | Currency exchange contracts [Member] | Other current liabilities [Member]
Derivatives designated as hedges
Derivative liability designated as hedging instrument	15	22
Derivatives designated as hedges [Member] | Cash Flow Hedging [Member] | Currency exchange contracts [Member] | Other noncurrent liabilities [Member]
Derivatives designated as hedges
Derivative liability designated as hedging instrument	1	2
Derivatives not designated as hedges [Member] | Currency exchange contracts [Member]
Derivatives designated as hedges
Notional amount	3,543	3,719
Derivatives not designated as hedges [Member] | Commodity contracts [Member]
Derivatives designated as hedges
Notional amount	$ 17	$ 13
Minimum [Member] | Derivatives designated as hedges [Member] | Fair value hedging [Member] | Fixed-to-floating interest rate swaps [Member]
Derivatives, Fair Value [Line Items]
Derivative, term of contract	2 months	6 months
Minimum [Member] | Derivatives designated as hedges [Member] | Cash Flow Hedging [Member] | Currency exchange contracts [Member]
Derivatives, Fair Value [Line Items]
Derivative, term of contract	1 month	1 month
Minimum [Member] | Derivatives not designated as hedges [Member] | Currency exchange contracts [Member]
Derivatives, Fair Value [Line Items]
Derivative, term of contract	1 month	1 month
Minimum [Member] | Derivatives not designated as hedges [Member] | Commodity contracts [Member]
Derivatives, Fair Value [Line Items]
Derivative, term of contract	1 month	1 month
Maximum [Member] | Derivatives designated as hedges [Member] | Fair value hedging [Member] | Fixed-to-floating interest rate swaps [Member]
Derivatives, Fair Value [Line Items]
Derivative, term of contract	17 years	17 years
Maximum [Member] | Derivatives designated as hedges [Member] | Cash Flow Hedging [Member] | Currency exchange contracts [Member]
Derivatives, Fair Value [Line Items]
Derivative, term of contract	36 months	36 months
Maximum [Member] | Derivatives not designated as hedges [Member] | Currency exchange contracts [Member]
Derivatives, Fair Value [Line Items]
Derivative, term of contract	12 months	12 months
Maximum [Member] | Derivatives not designated as hedges [Member] | Commodity contracts [Member]
Derivatives, Fair Value [Line Items]
Derivative, term of contract	12 months	12 months

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DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES - Amounts Recognized in Accumulated Other Comprehensive Income (Details) - Cash flow hedges [Member] - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Cost of products sold [Member] | Currency exchange contracts [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) recognized in other comprehensive (loss) income	$ 13	$ (1)
Gain (loss) reclassified from Accumulated other comprehensive loss	(4)	(4)
Cost of products sold or Interest expense - net [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) recognized in other comprehensive (loss) income	13	(1)
Gain (loss) reclassified from Accumulated other comprehensive loss	$ (4)	$ (4)

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DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES - Amounts Recognized in Net Income (Details) - Interest expense - net [Member] - Fair value hedging [Member] - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Derivative Instruments, Gain (Loss) [Line Items]
Amounts recognized in net income	$ 0	$ 0
Fixed-to-floating interest rate swaps [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Amounts recognized in net income	(43)	(11)
Related long-term debt converted to floating interest rates by interest rate swaps [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Amounts recognized in net income	$ 43	$ 11

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INVENTORY (Details) - USD ($) $ in Millions	Mar. 31, 2018	Dec. 31, 2017
Inventory Disclosure [Abstract]
Raw materials	$ 1,019	$ 953
Work-in-process	523	471
Finished goods	1,203	1,196
Total inventory	$ 2,745	$ 2,620

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BUSINESS SEGMENT INFORMATION (Details) - USD ($) $ in Millions	3 Months Ended									12 Months Ended
	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016
Business Segment Information
Net sales	$ 5,251				$ 4,848
Corporate
Interest expense - net	70				61
Pension and other postretirement benefits expense	(43)				(51)
Other corporate expense - net	(2)				(6)
Income before income taxes	565				467
Income tax expense	78				33
Net income	487				434
Less net loss for noncontrolling interests	1				0
Net income attributable to Eaton ordinary shareholders	488				434
New Business Segments - Results of Operations
Net sales	5,251				4,848
Acquisition integration charges	0				1
Electrical Products [Member]
New Business Segments - Results of Operations
Acquisition integration charges	0				1
Total business segments [Member]
Business Segment Information
Net sales	5,251				4,848
Segment operating profit	796				699
New Business Segments - Results of Operations
Net sales	5,251				4,848
Operating profit	796				699
Total business segments [Member] | Electrical Products [Member]
Business Segment Information
Net sales	1,732	$ 1,750	$ 1,785	$ 1,731	1,651	$ 1,665	$ 1,705	$ 1,717	$ 1,616	$ 6,917	$ 6,703
Segment operating profit	307	318	330	299	286	305	317	304	260	1,233	1,186
New Business Segments - Results of Operations
Net sales	1,732	1,750	1,785	1,731	1,651	1,665	1,705	1,717	1,616	6,917	6,703
Operating profit	307	$ 318	$ 330	$ 299	$ 286	$ 305	$ 317	$ 304	$ 260	$ 1,233	$ 1,186
Operating margin		18.20%	18.50%	17.30%	17.30%	18.30%	18.60%	17.70%	16.10%	17.80%	17.70%
Acquisition integration charges		$ 1	$ 1	$ 1	$ 1	$ 1	$ 1	$ 1	$ 0	$ 4	$ 3
Total business segments [Member] | Electrical Systems and Services [Member]
Business Segment Information
Net sales	1,381				1,333
Segment operating profit	167				155
New Business Segments - Results of Operations
Net sales	1,381				1,333
Operating profit	167				155
Total business segments [Member] | Hydraulics [Member]
Business Segment Information
Net sales	710				587
Segment operating profit	90				60
New Business Segments - Results of Operations
Net sales	710				587
Operating profit	90				60
Total business segments [Member] | Aerospace [Member]
Business Segment Information
Net sales	458				428
Segment operating profit	89				79
New Business Segments - Results of Operations
Net sales	458				428
Operating profit	89				79
Total business segments [Member] | Vehicle [Member]
Business Segment Information
Net sales	893	837	858	845	786	739	784	825	793	3,326	3,141
Segment operating profit	132	142	150	141	108	97	122	135	117	541	471
New Business Segments - Results of Operations
Net sales	893	837	858	845	786	739	784	825	793	3,326	3,141
Operating profit	132	$ 142	$ 150	$ 141	$ 108	$ 97	$ 122	$ 135	$ 117	$ 541	$ 471
Operating margin		17.00%	17.50%	16.70%	13.70%	13.10%	15.60%	16.40%	14.80%	16.30%	15.00%
Total business segments [Member] | eMobility [Member]
Business Segment Information
Net sales	77	$ 73	$ 75	$ 72	$ 63	$ 63	$ 64	$ 73	$ 66	$ 283	$ 266
Segment operating profit	11	10	16	13	11	11	14	20	12	50	57
New Business Segments - Results of Operations
Net sales	77	73	75	72	63	63	64	73	66	283	266
Operating profit	11	$ 10	$ 16	$ 13	$ 11	$ 11	$ 14	$ 20	$ 12	$ 50	$ 57
Operating margin		13.70%	21.30%	18.10%	17.50%	17.50%	21.90%	27.40%	18.20%	17.70%	21.40%
Corporate [Member]
Corporate
Amortization of intangible assets	(98)				$ (94)
Interest expense - net	(70)				(61)
Pension and other postretirement benefits expense	(2)				(11)
Other corporate expense - net	$ (61)				(66)
Before acquisition integration charges [Member] | Total business segments [Member] | Electrical Products [Member]
Business Segment Information
Segment operating profit		$ 319	$ 331	$ 300	287	$ 306	$ 318	$ 305	$ 260	$ 1,237	$ 1,189
New Business Segments - Results of Operations
Operating profit		$ 319	$ 331	$ 300	$ 287	$ 306	$ 318	$ 305	$ 260	$ 1,237	$ 1,189
Operating margin		18.20%	18.50%	17.30%	17.40%	18.40%	18.70%	17.80%	16.10%	17.90%	17.70%

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CONDENSED CONSOLIDATING FINANCIAL STATEMENTS - Narrative (Details)	Mar. 31, 2018	Nov. 14, 2013
Condensed Consolidating Financial Information [Abstract]
Eaton and certain other 100% owned subsidiaries guarantee of Senior Debt	100.00%	100.00%

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CONDENSED CONSOLIDATING FINANCIAL STATEMENTS - Consolidating Statements of Comprehensive Income (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Consolidating Statements of Comprehensive Income, Captions [Line Items]
Net sales	$ 5,251	$ 4,848
Cost of products sold	3,573	3,307
Selling and administrative expense	889	876
Research and development expense	156	143
Interest expense (income) - net	70	61
Other income - net	(2)	(6)
Equity in loss (earnings) of subsidiaries, net of tax	0	0
Intercompany expense (income) - net	0	0
Income before income taxes	565	467
Income tax expense (benefit)	78	33
Net income	487	434
Less net loss (income) for noncontrolling interests	1	0
Net income attributable to Eaton ordinary shareholders	488	434
Other comprehensive income	296	263
Total comprehensive income (loss) attributable to Eaton ordinary shareholders	784	697
Guarantors
Consolidating Statements of Comprehensive Income, Captions [Line Items]
Net sales	1,700	1,656
Cost of products sold	1,236	1,228
Selling and administrative expense	178	199
Research and development expense	41	49
Interest expense (income) - net	4	5
Other income - net	(9)	1
Equity in loss (earnings) of subsidiaries, net of tax	(829)	(790)
Intercompany expense (income) - net	486	338
Income before income taxes	593	626
Income tax expense (benefit)	(14)	16
Net income	607	610
Less net loss (income) for noncontrolling interests	0	0
Net income attributable to Eaton ordinary shareholders	607	610
Other comprehensive income	296	262
Total comprehensive income (loss) attributable to Eaton ordinary shareholders	903	872
Other subsidiaries [Member]
Consolidating Statements of Comprehensive Income, Captions [Line Items]
Net sales	3,191	2,930
Cost of products sold	2,310	2,140
Selling and administrative expense	367	328
Research and development expense	76	40
Interest expense (income) - net	(1)	(5)
Other income - net	(16)	(24)
Equity in loss (earnings) of subsidiaries, net of tax	(659)	(658)
Intercompany expense (income) - net	(470)	(418)
Income before income taxes	1,584	1,527
Income tax expense (benefit)	99	18
Net income	1,485	1,509
Less net loss (income) for noncontrolling interests	1	(1)
Net income attributable to Eaton ordinary shareholders	1,486	1,508
Other comprehensive income	613	516
Total comprehensive income (loss) attributable to Eaton ordinary shareholders	2,099	2,024
Eaton Corporation plc [Member]
Consolidating Statements of Comprehensive Income, Captions [Line Items]
Net sales	0	0
Cost of products sold	0	0
Selling and administrative expense	3	32
Research and development expense	0	0
Interest expense (income) - net	0	0
Other income - net	18	7
Equity in loss (earnings) of subsidiaries, net of tax	(514)	(583)
Intercompany expense (income) - net	5	110
Income before income taxes	488	434
Income tax expense (benefit)	0	0
Net income	488	434
Less net loss (income) for noncontrolling interests	0	0
Net income attributable to Eaton ordinary shareholders	488	434
Other comprehensive income	296	263
Total comprehensive income (loss) attributable to Eaton ordinary shareholders	784	697
Eaton Corporation [Member]
Consolidating Statements of Comprehensive Income, Captions [Line Items]
Net sales	1,689	1,572
Cost of products sold	1,352	1,251
Selling and administrative expense	341	317
Research and development expense	39	54
Interest expense (income) - net	68	62
Other income - net	5	10
Equity in loss (earnings) of subsidiaries, net of tax	(178)	169
Intercompany expense (income) - net	(21)	(30)
Income before income taxes	83	(261)
Income tax expense (benefit)	(6)	(3)
Net income	89	(258)
Less net loss (income) for noncontrolling interests	0	0
Net income attributable to Eaton ordinary shareholders	89	(258)
Other comprehensive income	38	63
Total comprehensive income (loss) attributable to Eaton ordinary shareholders	127	(195)
Consolidating adjustments [Member]
Consolidating Statements of Comprehensive Income, Captions [Line Items]
Net sales	(1,329)	(1,310)
Cost of products sold	(1,325)	(1,312)
Selling and administrative expense	0	0
Research and development expense	0	0
Interest expense (income) - net	(1)	(1)
Other income - net	0	0
Equity in loss (earnings) of subsidiaries, net of tax	2,180	1,862
Intercompany expense (income) - net	0	0
Income before income taxes	(2,183)	(1,859)
Income tax expense (benefit)	(1)	2
Net income	(2,182)	(1,861)
Less net loss (income) for noncontrolling interests	0	1
Net income attributable to Eaton ordinary shareholders	(2,182)	(1,860)
Other comprehensive income	(947)	(841)
Total comprehensive income (loss) attributable to Eaton ordinary shareholders	$ (3,129)	$ (2,701)

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CONDENSED CONSOLIDATING FINANCIAL STATEMENTS - Condensed Consolidating Balance Sheets (Details) - USD ($) $ in Millions	Mar. 31, 2018	Jan. 01, 2018	Dec. 31, 2017	Mar. 31, 2017	Dec. 31, 2016
Current assets
Cash	$ 317		$ 561	$ 222	$ 543
Short-term investments	510		534
Accounts receivable - net	4,005	$ 3,844	3,943
Intercompany accounts receivable	0		0
Inventory	2,745		2,620
Prepaid expenses and other current assets	552	808	679
Total current assets	8,129		8,337
Property, plant and equipment - net	3,543		3,502
Other noncurrent assets
Goodwill	13,698		13,568
Other intangible assets	5,206		5,265
Deferred income taxes	356	254	253
Investment in subsidiaries	0		0
Intercompany loans receivables	0		0
Other assets	1,736		1,698
Total assets	32,668		32,623
Current liabilities
Short-term debt	185		6
Current portion of long-term debt	847		578
Accounts payable	2,203		2,166
Intercompany accounts payable	0		0
Accrued compensation	300		453
Other current liabilities	1,861	1,905	1,872
Total current liabilities	5,396		5,075
Noncurrent liabilities
Long-term debt	6,845		7,167
Pension liabilities	1,225		1,226
Other postretirement benefits liabilities	359		362
Deferred income taxes	557		538
Intercompany loans payable	0		0
Other noncurrent liabilities	985		965
Total noncurrent liabilities	9,971		10,258
Shareholders’ equity
Eaton shareholders' equity	17,263	$ 17,251	17,253
Noncontrolling interests	38		37
Total equity	17,301		17,290
Total liabilities and equity	32,668		32,623
Consolidation, Eliminations [Member]
Current assets
Cash	0		0	0	0
Short-term investments	0		0
Accounts receivable - net	0		0
Intercompany accounts receivable	(6,286)		(10,744)
Inventory	(87)		(83)
Prepaid expenses and other current assets	30		28
Total current assets	(6,343)		(10,799)
Property, plant and equipment - net	0		0
Other noncurrent assets
Goodwill	0		0
Other intangible assets	0		0
Deferred income taxes	(305)		(324)
Investment in subsidiaries	(103,843)		(139,775)
Intercompany loans receivables	(76,662)		(74,563)
Other assets	0		0
Total assets	(187,153)		(225,461)
Current liabilities
Short-term debt	0		0
Current portion of long-term debt	0		0
Accounts payable	0		0
Intercompany accounts payable	(6,286)		(10,744)
Accrued compensation	0		0
Other current liabilities	0		(1)
Total current liabilities	(6,286)		(10,745)
Noncurrent liabilities
Long-term debt	0		2
Pension liabilities	0		0
Other postretirement benefits liabilities	0		0
Deferred income taxes	(305)		(324)
Intercompany loans payable	(76,662)		(74,563)
Other noncurrent liabilities	0		0
Total noncurrent liabilities	(76,967)		(74,885)
Shareholders’ equity
Eaton shareholders' equity	(103,900)		(139,831)
Noncontrolling interests	0		0
Total equity	(103,900)		(139,831)
Total liabilities and equity	(187,153)		(225,461)
Non-Guarantor Subsidiaries [Member]
Current assets
Cash	301		360	169	438
Short-term investments	510		534
Accounts receivable - net	2,145		2,085
Intercompany accounts receivable	2,952		2,716
Inventory	1,549		1,493
Prepaid expenses and other current assets	317		277
Total current assets	7,774		7,465
Property, plant and equipment - net	2,004		1,941
Other noncurrent assets
Goodwill	5,676		5,547
Other intangible assets	1,903		1,921
Deferred income taxes	298		215
Investment in subsidiaries	23,602		39,848
Intercompany loans receivables	64,992		61,427
Other assets	829		784
Total assets	107,078		119,148
Current liabilities
Short-term debt	95		6
Current portion of long-term debt	1		1
Accounts payable	1,307		1,287
Intercompany accounts payable	1,649		1,405
Accrued compensation	223		260
Other current liabilities	1,050		989
Total current liabilities	4,325		3,948
Noncurrent liabilities
Long-term debt	9		9
Pension liabilities	804		796
Other postretirement benefits liabilities	73		74
Deferred income taxes	257		255
Intercompany loans payable	946		1,153
Other noncurrent liabilities	385		378
Total noncurrent liabilities	2,474		2,665
Shareholders’ equity
Eaton shareholders' equity	100,241		112,498
Noncontrolling interests	38		37
Total equity	100,279		112,535
Total liabilities and equity	107,078		119,148
Guarantors [Member]
Current assets
Cash	6		18	10	12
Short-term investments	0		0
Accounts receivable - net	1,407		1,376
Intercompany accounts receivable	1,724		5,155
Inventory	766		737
Prepaid expenses and other current assets	97		145
Total current assets	4,000		7,431
Property, plant and equipment - net	698		702
Other noncurrent assets
Goodwill	6,705		6,705
Other intangible assets	3,168		3,206
Deferred income taxes	3		6
Investment in subsidiaries	54,848		75,379
Intercompany loans receivables	5,313		2,909
Other assets	166		166
Total assets	74,901		96,504
Current liabilities
Short-term debt	0		0
Current portion of long-term debt	2		35
Accounts payable	392		330
Intercompany accounts payable	3,243		4,418
Accrued compensation	31		65
Other current liabilities	311		317
Total current liabilities	3,979		5,165
Noncurrent liabilities
Long-term debt	995		976
Pension liabilities	88		89
Other postretirement benefits liabilities	95		96
Deferred income taxes	605		607
Intercompany loans payable	70,262		68,685
Other noncurrent liabilities	270		273
Total noncurrent liabilities	72,315		70,726
Shareholders’ equity
Eaton shareholders' equity	(1,393)		20,613
Noncontrolling interests	0		0
Total equity	(1,393)		20,613
Total liabilities and equity	74,901		96,504
Eaton Corporation [Member]
Current assets
Cash	10		183	43	92
Short-term investments	0		0
Accounts receivable - net	453		482
Intercompany accounts receivable	1,607		2,865
Inventory	517		473
Prepaid expenses and other current assets	108		229
Total current assets	2,695		4,232
Property, plant and equipment - net	841		859
Other noncurrent assets
Goodwill	1,317		1,316
Other intangible assets	135		138
Deferred income taxes	360		356
Investment in subsidiaries	9,742		9,503
Intercompany loans receivables	3,235		7,105
Other assets	741		748
Total assets	19,066		24,257
Current liabilities
Short-term debt	90		0
Current portion of long-term debt	844		542
Accounts payable	504		549
Intercompany accounts payable	1,388		4,917
Accrued compensation	46		128
Other current liabilities	492		566
Total current liabilities	3,364		6,702
Noncurrent liabilities
Long-term debt	5,841		6,180
Pension liabilities	333		341
Other postretirement benefits liabilities	191		192
Deferred income taxes	0		0
Intercompany loans payable	3,955		3,808
Other noncurrent liabilities	330		314
Total noncurrent liabilities	10,650		10,835
Shareholders’ equity
Eaton shareholders' equity	5,052		6,720
Noncontrolling interests	0		0
Total equity	5,052		6,720
Total liabilities and equity	19,066		24,257
Eaton Corporation plc [Member]
Current assets
Cash	0		0	$ 0	$ 1
Short-term investments	0		0
Accounts receivable - net	0		0
Intercompany accounts receivable	3		8
Inventory	0		0
Prepaid expenses and other current assets	0		0
Total current assets	3		8
Property, plant and equipment - net	0		0
Other noncurrent assets
Goodwill	0		0
Other intangible assets	0		0
Deferred income taxes	0		0
Investment in subsidiaries	15,651		15,045
Intercompany loans receivables	3,122		3,122
Other assets	0		0
Total assets	18,776		18,175
Current liabilities
Short-term debt	0		0
Current portion of long-term debt	0		0
Accounts payable	0		0
Intercompany accounts payable	6		4
Accrued compensation	0		0
Other current liabilities	8		1
Total current liabilities	14		5
Noncurrent liabilities
Long-term debt	0		0
Pension liabilities	0		0
Other postretirement benefits liabilities	0		0
Deferred income taxes	0		0
Intercompany loans payable	1,499		917
Other noncurrent liabilities	0		0
Total noncurrent liabilities	1,499		917
Shareholders’ equity
Eaton shareholders' equity	17,263		17,253
Noncontrolling interests	0		0
Total equity	17,263		17,253
Total liabilities and equity	$ 18,776		$ 18,175

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CONDENSED CONSOLIDATING FINANCIAL STATEMENTS - Condensed Consolidating Statements of Cash Flows (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Condensed Consolidating Statements of Cash Flows, Captions [Line Items]
Net cash provided by (used in) operating activities	$ 339	$ 463
Investing activities
Capital expenditures for property, plant and equipment	(131)	(116)
Sales (purchases) of short-term investments - net	31	(93)
Investments in affiliates	0	0
Loans to affiliates	0	0
Repayments of loans from affiliates	0	0
Other - net	(37)	(20)
Net cash provided by (used in) investing activities	(137)	(229)
Financing activities
Proceeds from borrowings	179	194
Payments on borrowings	(33)	(254)
Proceeds from borrowings from affiliates	0	0
Payments on borrowings from affiliates	0	0
Capital contributions from affiliates	0	0
Other intercompany financing activities	0	0
Cash dividends paid	(284)	(263)
Payments of Distributions to Affiliates		0
Exercise of employee stock options	19	38
Repurchase of shares	(300)	(255)
Payments Related to Tax Withholding for Share-based Compensation	(23)	(20)
Other - net	(1)	(3)
Net cash provided by (used in) financing activities	(443)	(563)
Effect of currency on cash	(3)	8
Total increase (decrease) in cash	(244)	(321)
Cash at the beginning of the period	561	543
Cash at the end of the period	317	222
Guarantors [Member]
Condensed Consolidating Statements of Cash Flows, Captions [Line Items]
Net cash provided by (used in) operating activities	82	733
Investing activities
Capital expenditures for property, plant and equipment	(24)	(26)
Sales (purchases) of short-term investments - net	0	0
Investments in affiliates	0	0
Loans to affiliates	(486)	(87)
Repayments of loans from affiliates	886	55
Other - net	(4)	2
Net cash provided by (used in) investing activities	372	(56)
Financing activities
Proceeds from borrowings	0	0
Payments on borrowings	(33)	0
Proceeds from borrowings from affiliates	28	662
Payments on borrowings from affiliates	(16)	(17)
Capital contributions from affiliates	0	0
Other intercompany financing activities	(441)	(519)
Cash dividends paid	0	0
Payments of Distributions to Affiliates		800
Exercise of employee stock options	0	0
Repurchase of shares	0	0
Payments Related to Tax Withholding for Share-based Compensation	(4)	(4)
Other - net	0	(1)
Net cash provided by (used in) financing activities	(466)	(679)
Effect of currency on cash	0	0
Total increase (decrease) in cash	(12)	(2)
Cash at the beginning of the period	18	12
Cash at the end of the period	6	10
Other subsidiaries [Member]
Condensed Consolidating Statements of Cash Flows, Captions [Line Items]
Net cash provided by (used in) operating activities	321	196
Investing activities
Capital expenditures for property, plant and equipment	(84)	(70)
Sales (purchases) of short-term investments - net	31	(93)
Investments in affiliates	0	0
Loans to affiliates	(1,177)	(2,348)
Repayments of loans from affiliates	1,299	2,195
Other - net	(18)	(11)
Net cash provided by (used in) investing activities	51	(327)
Financing activities
Proceeds from borrowings	89	0
Payments on borrowings	0	(4)
Proceeds from borrowings from affiliates	0	4
Payments on borrowings from affiliates	(754)	(17)
Capital contributions from affiliates	36	1
Other intercompany financing activities	204	582
Cash dividends paid	0	0
Payments of Distributions to Affiliates		707
Exercise of employee stock options	0	0
Repurchase of shares	0	0
Payments Related to Tax Withholding for Share-based Compensation	(3)	(3)
Other - net	0	(2)
Net cash provided by (used in) financing activities	(428)	(146)
Effect of currency on cash	(3)	8
Total increase (decrease) in cash	(59)	(269)
Cash at the beginning of the period	360	438
Cash at the end of the period	301	169
Eaton Corporation plc [Member]
Condensed Consolidating Statements of Cash Flows, Captions [Line Items]
Net cash provided by (used in) operating activities	2	611
Investing activities
Capital expenditures for property, plant and equipment	0	0
Sales (purchases) of short-term investments - net	0	0
Investments in affiliates	0	0
Loans to affiliates	0	0
Repayments of loans from affiliates	0	0
Other - net	0	0
Net cash provided by (used in) investing activities	0	0
Financing activities
Proceeds from borrowings	0	0
Payments on borrowings	0	0
Proceeds from borrowings from affiliates	585	668
Payments on borrowings from affiliates	(22)	(800)
Capital contributions from affiliates	0	0
Other intercompany financing activities	0	0
Cash dividends paid	(284)	(263)
Payments of Distributions to Affiliates		0
Exercise of employee stock options	19	38
Repurchase of shares	(300)	(255)
Payments Related to Tax Withholding for Share-based Compensation	0	0
Other - net	0	0
Net cash provided by (used in) financing activities	(2)	(612)
Effect of currency on cash	0	0
Total increase (decrease) in cash	0	(1)
Cash at the beginning of the period	0	1
Cash at the end of the period	0	0
Eaton Corporation [Member]
Condensed Consolidating Statements of Cash Flows, Captions [Line Items]
Net cash provided by (used in) operating activities	(66)	430
Investing activities
Capital expenditures for property, plant and equipment	(23)	(20)
Sales (purchases) of short-term investments - net	0	0
Investments in affiliates	(36)	(1)
Loans to affiliates	0	(6)
Repayments of loans from affiliates	16	19
Other - net	(15)	(11)
Net cash provided by (used in) investing activities	(58)	(19)
Financing activities
Proceeds from borrowings	90	194
Payments on borrowings	0	(250)
Proceeds from borrowings from affiliates	1,050	1,107
Payments on borrowings from affiliates	(1,409)	(1,435)
Capital contributions from affiliates	0	0
Other intercompany financing activities	237	(63)
Cash dividends paid	0	0
Payments of Distributions to Affiliates		0
Exercise of employee stock options	0	0
Repurchase of shares	0	0
Payments Related to Tax Withholding for Share-based Compensation	(16)	(13)
Other - net	(1)	0
Net cash provided by (used in) financing activities	(49)	(460)
Effect of currency on cash	0	0
Total increase (decrease) in cash	(173)	(49)
Cash at the beginning of the period	183	92
Cash at the end of the period	10	43
Consolidation, Eliminations [Member]
Condensed Consolidating Statements of Cash Flows, Captions [Line Items]
Net cash provided by (used in) operating activities	0	(1,507)
Investing activities
Capital expenditures for property, plant and equipment	0	0
Sales (purchases) of short-term investments - net	0	0
Investments in affiliates	36	1
Loans to affiliates	1,663	2,441
Repayments of loans from affiliates	(2,201)	(2,269)
Other - net	0	0
Net cash provided by (used in) investing activities	(502)	173
Financing activities
Proceeds from borrowings	0	0
Payments on borrowings	0	0
Proceeds from borrowings from affiliates	(1,663)	(2,441)
Payments on borrowings from affiliates	2,201	2,269
Capital contributions from affiliates	(36)	(1)
Other intercompany financing activities	0	0
Cash dividends paid	0	0
Payments of Distributions to Affiliates		(1,507)
Exercise of employee stock options	0	0
Repurchase of shares	0	0
Payments Related to Tax Withholding for Share-based Compensation	0	0
Other - net	0	0
Net cash provided by (used in) financing activities	502	1,334
Effect of currency on cash	0	0
Total increase (decrease) in cash	0	0
Cash at the beginning of the period	0	0
Cash at the end of the period	$ 0	$ 0