


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