10-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-K

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

For the year endedDecember 31, 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)
	Securities registered pursuant to Section 12(b) of the Act:
Title of each class			Name of each exchange on which registered
Ordinary Shares ($0.01 par value)			The New York Stock Exchange

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

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

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

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

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (§229.405 of this chapter) is not contained herein, and will not be contained, to the best of registrant's knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, 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 Act). Yes o No þ

The aggregate market value of Ordinary Shares held by non-affiliates of the registrant as of June 30, 2018 was $32.4 billion.

As of January 31, 2019, there were 423.6 million Ordinary Shares outstanding.

Documents Incorporated By Reference

Portions of the Proxy Statement for the 2019 annual shareholders meeting are incorporated by reference into Part III.

TABLE OF CONTENTS
Part I		2
Item 1.	Business	2
Item 1A.	Risk Factors	3
Item 1B.	Unresolved Staff Comments	5
Item 2.	Properties	5
Item 3.	Legal Proceedings	5
Item 4.	Mine Safety Disclosures	5
Part II		5
Item 5.	Market for the Registrant's Ordinary Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities	5
Item 6.	Selected Financial Data	6
Item 7.	Management's Discussion and Analysis of Financial Condition and Results of Operations	6
Item 7A.	Quantitative and Qualitative Disclosures about Market Risk	7
Item 8.	Financial Statements and Supplementary Data	7
Item 9.	Change in and Disagreements with Accountants on Accounting and Financial Disclosure	7
Item 9A.	Controls and Procedures	7
Item 9B.	Other Information	7
Part III		8
Item 10.	Directors, Executive Officers and Corporate Governance	8
Item 11.	Executive Compensation	9
Item 12.	Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters	9
Item 13.	Certain Relationships and Related Transactions, and Director Independence	9
Item 14.	Principal Accounting Fees and Services	10
Part IV		10
Item 15.	Exhibits, Financial Statement Schedules	10
Item 16.	Form 10-K Summary	14
SIGNATURES		15

Part I

Item 1. Business.

Eaton Corporation plc (Eaton or the Company) is a power management company with 2018 net sales of $21.6 billion. The Company provides energy-efficient solutions that help its customers effectively manage electrical, hydraulic and mechanical power more reliably, safely and sustainably. Eaton has approximately 99,000 employees in 59 countries and sells products to customers in more than 175 countries.

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

Business Segment Information

Information by business segment regarding principal products, principal markets, methods of distribution and net sales is presented in Note 16 of the Notes to the Consolidated Financial Statements. Additional information regarding Eaton's segments and business is presented below.

Electrical Products and Electrical Systems and Services

Principal methods of competition in these segments are performance of products and systems, technology, customer service and support, and price. Eaton has a strong competitive position in these segments and, with respect to many products, is considered among the market leaders. In normal economic cycles, sales of these segments are historically lower in the first quarter and higher in the third and fourth quarters of a year. In 2018, 23% of these segments' sales were made to seven large distributors of electrical products and electrical systems and services.

Hydraulics

Principal methods of competition in this segment are product performance, geographic coverage, service, and price. Eaton has a strong competitive position in this segment and, with respect to many products, is considered among the market leaders. Sales of this segment are historically higher in the first and second quarters and lower in the third and fourth quarters of the year. In 2018, 11% of this segment's sales were made to four large original equipment manufacturers or distributors of agricultural, construction, and industrial equipment and parts.

Aerospace

Principal methods of competition in this segment are total cost of ownership, product and system performance, quality, design engineering capabilities, and timely delivery. Eaton has a strong competitive position in this segment and, with respect to many products and platforms, is considered among the market leaders. In 2018, 26% of this segment's sales were made to three large original equipment manufacturers of aircraft.

Vehicle

Principal methods of competition in this segment are product performance, technology, global service, and price. Eaton has a strong competitive position in this segment and, with respect to many products, is considered among the market leaders. In 2018, 61% of this segment's sales were made to nine large original equipment manufacturers of vehicles and related components.

eMobility

Principal methods of competition in this segment are product performance, technology, global service, and price. Eaton has a strong competitive position in this segment. In 2018, 19% of this segment's sales were made to four large original equipment manufacturers of vehicles, construction equipment and related components.

Information Concerning Eaton's Business in General

Raw Materials

Eaton's major requirements for raw materials include iron, steel, copper, nickel, aluminum, brass, tin, silver, lead, titanium, rubber, plastic, electronic components, chemicals and fluids. Materials are purchased in various forms, such as extrusions, castings, powder metal, metal sheets and strips, forging billets, bar stock, and plastic pellets. Raw materials, as well as parts and other components, are purchased from many suppliers. Under normal circumstances, the Company has no difficulty obtaining its raw materials. In 2018, Eaton maintained appropriate levels of inventory to prevent shortages and did not experience any availability constraints.

2

Patents and Trademarks

Eaton considers its intellectual property, including without limitation patents, trade names, domain names, trademarks, confidential information, and trade secrets to be of significant value to its business as a whole. The Company's products are manufactured, marketed and sold under a portfolio of patents, trademarks, licenses, and other forms of intellectual property, some of which expire in the future. Eaton develops and acquires new intellectual property on an ongoing basis and considers all of its intellectual property to be valuable. Based on the broad scope of the Company's product lines, management believes that the loss or expiration of any single intellectual property right would not have a material effect on Eaton's consolidated financial statements or its business segments. The Company's policy is to file applications and obtain patents for the majority of its novel and innovative new products including product modifications and improvements.

Order Backlog

A significant portion of open orders placed with Eaton are by original equipment manufacturers or distributors. These open orders are not considered firm as they have been historically subject to releases by customers. In measuring backlog orders, only the amount of orders to which customers are firmly committed are included. Using this criterion, total backlog at December 31, 2018 and 2017 was approximately $5.3 billion and $4.8 billion, respectively. Backlog should not be relied upon as being indicative of results of operations for future periods.

Environmental Contingencies

Operations of the Company involve the use and disposal of certain substances regulated under environmental protection laws. Eaton continues to modify processes on an ongoing, regular basis in order to reduce the impact on the environment, including the reduction or elimination of certain chemicals used in, and wastes generated from, operations. Compliance with laws that have been enacted or adopted regulating the discharge of materials into the environment, or otherwise relating to the protection of the environment, are not expected to have a material adverse effect upon earnings or the competitive position of the Company. Eaton's estimated capital expenditures for environmental control facilities are not expected to be material for 2019 and 2020. Information regarding the Company's liabilities related to environmental matters is presented in Note 9 of the Notes to the Consolidated Financial Statements.

Item 1A. Risk Factors.

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

Volatility of end markets that Eaton serves.

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

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

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

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

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

3

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

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

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

Eaton relies on information technology networks and systems, including the Internet, to process, transmit and store electronic information, and to manage or support a variety of business processes and activities, including procurement, manufacturing, distribution, invoicing and collection. These technology networks and systems may be susceptible to damage, disruptions or shutdowns due to failures during the process of upgrading or replacing software, databases or components; power outages; hardware failures; or computer viruses. In addition, security breaches could result in unauthorized disclosure of confidential information. If these information technology systems suffer severe damage, disruption, breach, or shutdown, and business continuity plans do not effectively resolve the issues in a timely manner, there could be a negative impact on operating results or the Company may suffer financial or reputational damage. Further, Cyber-based risks could also include attacks targeting the security, integrity and/or reliability of the hardware, software and information installed, stored or transmitted in our products, including after the purchase of those products and when they are incorporated into third party products, facilities or infrastructure. Such attacks could result in disruptions to third party systems, unauthorized release of confidential or otherwise protected information and corruption of data (our own or that of third parties). Further, to a significant extent, the security of our customers’ systems depends on how those systems are protected, configured, updated and monitored, all of which are typically outside our control.

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

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

Further, existing free trade laws and regulations provide certain beneficial duties and tariffs for qualifying imports and exports, subject to compliance with the applicable classification and other requirements. Changes in laws or policies governing the terms of foreign trade, and in particular increased trade restrictions, tariffs or taxes on imports from countries where we manufacture products could have an impact on our business and financial results.

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

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

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

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

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

4

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

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

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

At any given time, Eaton may be subject to litigation, the disposition of which may have a material adverse effect on the Company's businesses, financial condition or results of operations. Information regarding current legal proceedings is presented in Note 9 and Note 10 of the Notes to the Consolidated Financial Statements.

Item 1B. Unresolved Staff Comments.

None.

Item 2. Properties.

Eaton's principal executive offices are located at Eaton House, 30 Pembroke Road, Dublin 4, Ireland D04 Y0C2. The Company maintains manufacturing facilities at approximately 284 locations in 42 countries. The Company is a lessee under a number of operating leases for certain real properties and equipment, none of which is material to its operations. Management believes that the existing manufacturing facilities are adequate for its operations and that the facilities are maintained in good condition.

Item 3. Legal Proceedings.

Information regarding the Company's current legal proceedings is presented in Note 9 and Note 10 of the Notes to the Consolidated Financial Statements.

Item 4. Mine Safety Disclosures.

Not applicable.

Part II

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

The Company's ordinary shares are listed for trading on the New York Stock Exchange under the symbol ETN. At December 31, 2018, there were 12,846 holders of record of the Company's ordinary shares. Additionally, 18,972 current and former employees were shareholders through participation in the Eaton Savings Plan (ESP), Eaton Personal Investment Plan (EPIP), and the Eaton Puerto Rico Retirement Savings Plan.

Information regarding equity-based compensation plans required by Regulation S-K Item 201(d) is provided in Item 12 of this Form 10-K Report.

5

Irish Taxes Applicable to Dividends

Irish income tax may arise with respect to dividends paid on Eaton shares. Generally, shareholders who are not tax residents of Ireland and otherwise have no connection with Ireland other than his or her shareholding in Eaton, will not be subject to Irish income tax. However, in certain circumstances, Eaton will be required to deduct Irish dividend withholding tax (“IDWT”, currently at the rate of 20%) from dividends paid to its shareholders who are not Irish residents. In the majority of cases though, shareholders resident in the U.S. and certain other countries are exempt from IDWT. To establish exempt status, shareholders who qualify can complete certain Irish dividend withholding tax exemption forms or hold their shares in an account through the Depository Trust Company and have on file with their broker or qualifying agent a valid U.S. address on the record date of the dividend.  

Eaton shareholders who receive their dividends subject to Irish dividend withholding tax will generally have no further liability for Irish income tax on the dividends unless they are otherwise subject to Irish income tax.

Issuer's Purchases of Equity Securities

During the fourth quarter of 2018, 9.8 million ordinary shares were repurchased in the open market at a total cost of $700 million. Approximately 5.5 million of these shares were repurchased under the program approved by the Board on February 24, 2016. A summary of the shares repurchased in the fourth 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)
October	1,455,792	$	71.11	1,455,792	$	298
November	3,998,803	$	73.81	3,998,803	$	3
December	4,388,605	$	68.68	46,891	$	—
Total	9,843,200	$	71.12	5,501,486

Item 6. Selected Financial Data.

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

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

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

6

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

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

Item 8. Financial Statements and Supplementary Data.

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

Information regarding selected quarterly financial information for 2018 and 2017 is presented in “Quarterly Data” of this Form 10-K.

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

None.

Item 9A. Controls and Procedures.

Evaluation of Disclosure Controls and Procedures - Pursuant to SEC Rule 13a-15, an evaluation was performed under the supervision and with the participation of Eaton's management, including 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, Eaton's management concluded that the Company's disclosure controls and procedures were effective as of December 31, 2018.

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

Pursuant to Section 404 of the Sarbanes Oxley Act of 2002 and the rules and regulations adopted pursuant thereto, Eaton has included a report of management's assessment of the effectiveness of internal control over financial reporting, which is included in Item 15 of this Form 10-K.

“Report of Independent Registered Public Accounting Firm” relating to internal control over financial reporting as of December 31, 2018 is included in Item 15 of this Form 10-K.

During the fourth 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.

Item 9B. Other Information.

Disclosure Pursuant to Section 13(r) 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 Annual Report, we are filing a notice pursuant to Section 13(r) of the Exchange Act that such matters have been disclosed in this Annual Report.

During the fourth quarter 2018, certain of our wholly-owned non-U.S. subsidiaries sold various products to customers in Iran. We received total revenue of approximately 820,559 Euros and realized net profits of approximately 268,547 Euros from the sales (approximately $933,380 and $305,470 in whole U.S. dollars, respectively). Eaton has determined not to take any future orders for sales to Iran.

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Part III

Item 10. Directors, Executive Officers and Corporate Governance.

Information required with respect to the directors of the Company is set forth under the caption “Election of Directors” in the Company's definitive Proxy Statement to be filed on or about March 15, 2019, and is incorporated by reference.

A listing of executive officers, their ages, positions and offices held over the past five years, as of February 15, 2019, follows:

Name	Age	Position (Date elected to position)
Craig Arnold	58	Chairman of Eaton Corporation plc (June 1, 2016 - present)
		Chief Executive Officer of Eaton Corporation (June 1, 2016 - present)
		Director of Eaton Corporation plc (September 1, 2015 - present)
		President and Chief Operating Officer of Eaton Corporation
		(September 1, 2015 - May 31, 2016)
		Vice Chairman and Chief Operating Officer - Industrial Sector of Eaton Corporation
		(February 1, 2009 - August 31, 2015)
Richard H. Fearon	62	Director of Eaton Corporation plc (September 1, 2015 - present)
		Vice Chairman and Chief Financial and Planning Officer of Eaton Corporation
		(April 24, 2002 - present)
Uday Yadav	55	Chief Operating Officer - Industrial Sector of Eaton Corporation
		(September 1, 2015 - present)
		President of Aerospace Group of Eaton Corporation (August 1, 2012 - August 31, 2015)
Heath B. Monesmith	48	Executive Vice President and General Counsel of Eaton Corporation
		(March 1, 2017 - present)
		Senior Vice President and Deputy General Counsel of Eaton Corporation
		(May 15, 2015 - March 1, 2017)
		Vice President and Chief Counsel - Litigation of Eaton Corporation
		(November 30, 2012 - May 15, 2015)
Thomas E. Moran	54	Senior Vice President and Secretary of Eaton Corporation plc (November 27, 2012 - present)
Ken D. Semelsberger	57	Senior Vice President and Controller of Eaton Corporation (November 1, 2013 - present)
		Senior Vice President, Finance and Planning - Industrial Sector of Eaton Corporation
		(February 1, 2009 - October 31, 2013)
Joao V. Faria	54	President - Vehicle Group of Eaton Corporation (May 1, 2017 - present)
		Vice President and General Manager, Latin America, Electrical Sector and
		President, Latin America (August 1, 2013 - April 30, 2017)
		President, Americas, Hydraulics Group (July 1, 2010 - July 31, 2013)
Curtis J. Hutchins	53	President - Hydraulics Group of Eaton Corporation (August 1, 2015 - present)
		President - Asia Pacific Region of Eaton Corporation (September 1, 2009 - July 31, 2015)
Nandakumar Cheruvatath	57	President - Aerospace Group of Eaton Corporation (September 1, 2015 - present)
		Executive Vice President, Eaton Business System (August 1, 2012 - August 31, 2015)

8

Richard M. Eubanks, Jr. (Mark)	46	President - Electrical Products Group of Eaton Corporation (September 1, 2015 - present)
		President, Eaton Lighting Division (February 1, 2010 - August 31, 2015)
Brian S. Brickhouse	55	President - Electrical Systems and Services Group of Eaton Corporation (July 1, 2018 - present)
		President, Asia Pacific Region, Electrical (May 15, 2015 - June 30, 2018)
		President, Power Quality Division, Electrical Sector - Americas (August 15, 2012 - May 14, 2015)

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

Information required with respect to compliance with Section 16(a) of the Exchange Act is set forth under the caption “Section 16(a) Beneficial Ownership Reporting Compliance” in the Company's definitive Proxy Statement to be filed on or about March 15, 2019, and is incorporated by reference.

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

There were no changes during the fourth quarter 2018 to the procedures by which security holders may recommend nominees to the Company's Board of Directors.

Information related to the Audit Committee, and members of the Committee who are financial experts, is set forth under the caption “Board Committees - Audit Committee” in the definitive Proxy Statement to be filed on or about March 15, 2019, and is incorporated by reference.

Item 11. Executive Compensation.

Information required with respect to executive compensation is set forth under the caption “Compensation Discussion and Analysis” in the Company's definitive Proxy Statement to be filed on or about March 15, 2019, and is incorporated by reference.

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

Information required with respect to securities authorized for issuance under equity-based compensation plans is set forth under the caption “Equity Compensation Plans” in the Company's definitive Proxy Statement to be filed on or about March 15, 2019, and is incorporated by reference.

Information required with respect to security ownership of certain beneficial owners, is set forth under the caption “Share Ownership Tables” in the Company's definitive Proxy Statement to be filed on or about March 15, 2019, and is incorporated by reference.

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

Information required with respect to certain relationships and related transactions is set forth under the caption “Review of Related Person Transactions” in the Company's definitive Proxy Statement to be filed on or about March 15, 2019, and is incorporated by reference.

Information required with respect to director independence is set forth under the caption “Director Independence” in the Company's definitive Proxy Statement to be filed on or about March 15, 2019, and is incorporated by reference.

9

Item 14. Principal Accounting Fees and Services.

Information required with respect to principal accountant fees and services is set forth under the caption “Audit Committee Report” in the Company's definitive Proxy Statement to be filed on or about March 15, 2019, and is incorporated by reference.

Part IV

Item 15. Exhibits, Financial Statement Schedules.

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

Reports of Independent Registered Public Accounting Firm

Consolidated Statements of Income - Years ended December 31, 2018, 2017 and 2016

Consolidated Statements of Comprehensive Income - Years ended December 31, 2018, 2017 and 2016

Consolidated Balance Sheets - December 31, 2018 and 2017

Consolidated Statements of Cash Flows - Years ended December 31, 2018, 2017 and 2016

Consolidated Statements of Shareholders' Equity - Years ended December 31, 2018, 2017 and 2016

Notes to Consolidated Financial Statements

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

(3) Exhibits incorporated by reference to or filed in conjunction with this form 10-K are listed below.

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

10

(b)	Deferred Incentive Compensation Plan II - Incorporated by reference to the Form 10-K Report for the year ended December 31, 2007
(c)	First Amendment to Deferred Incentive Compensation Plan II - Incorporated by reference to the Form S-8 filed November 30, 2012
(d)	Excess Benefits Plan II (2008 restatement) - Incorporated by reference to the Form 10-K Report for the year ended December 31, 2007
(e)	First Amendment to Excess Benefits Plan II (2008 restatement) - Incorporated by reference to the Form 10-K Report for the year ended December 31, 2012
(f)	Incentive Compensation Deferral Plan II - Incorporated by reference to the Form 10-K Report for the year ended December 31, 2007
(g)	First Amendment to Incentive Compensation Deferral Plan II - Incorporated by reference to the Form S-8 filed November 30, 2012
(h)	Limited Eaton Service Supplemental Retirement Income Plan II - Incorporated by reference to the Form 10-K Report for the year ended December 31, 2007
(i)	First Amendment to Limited Eaton Service Supplemental Retirement Income Plan II - Incorporated by reference to the Form 10-K Report for the year ended December 31, 2012
(j)	Supplemental Benefits Plan II (2008 restatement) - Incorporated by reference to the Form 10-K Report for the year ended December 31, 2007
(k)	First Amendment to Supplemental Benefits Plan II (2008 restatement) - Incorporated by reference to the Form 10-K Report for the year ended December 31, 2012
(l)	Form of Restricted Share Unit Agreement - Incorporated by reference to the Form 10-K Report for the year ended December 31, 2015
(m)	Form of Restricted Share Award Agreement - Incorporated by reference to the Form 10-K Report for the year ended December 31, 2015
(n)	Form of Restricted Share Agreement (Non-Employee Directors) - Incorporated by reference to the Form 8-K Report filed February 1, 2010
(o)	Form of Directors' Restricted Share Unit Agreement - Incorporated by reference to the Form 10-K report for the year ended December 31, 2012
(p)	Form of Stock Option Agreement for Executives - Incorporated by reference to the Form 10-K Report for the year ended December 31, 2015
(q)	Form of Stock Option Agreement for Non-Employee Directors (2008) - Incorporated by reference to the Form 10-K Report for the year ended December 31, 2007
(r)	Amended and Restated 2002 Stock Plan - Incorporated by reference to the Form S-8 filed November 30, 2012
(s)	Amended and Restated 2004 Stock Plan - Incorporated by reference to the Form S-8 filed November 30, 2012
(t)	Amended and Restated 2008 Stock Plan - Incorporated by reference to the Form S-8 filed November 30, 2012
(u)	Second Amended and Restated 2009 Stock Plan - Incorporated by reference to Form S-8 filed November 30, 2012
(v)	Amended and Restated 2012 Stock Plan - Incorporated by reference to the Form S-8 filed November 30, 2012
(w)	Amendment to Amended and Restated 2012 Stock Plan - Incorporated by reference to the Form 10-K Report for the year ended December 31, 2012
(x)	First Amendment to 2005 Non-Employee Director Fee Deferral Plan - Incorporated by reference to the Form S-8 filed November 30, 2012
(y)	2013 Non-Employee Director Fee Deferral Plan - Incorporated by reference to the Form 10-K Report for the year ended December 31, 2012

11

(z)	2015 Stock Plan - Incorporated by reference to the Form S-8 filed on October 30, 2015
(aa)	Form of Change of Control Agreement entered into with officers of Eaton Corporation - Incorporated by reference to the Form 8-K Report filed on December 17, 2015
(bb)	Form of Indemnification Agreement entered into with directors - Incorporated by reference to the Form 10-K Report for the year ended December 31, 2012
(cc)	Form of Indemnification Agreement II entered into with directors - Incorporated by reference to the Form 10-K Report for the year ended December 31, 2012
(dd)	Amended and Restated Executive Strategic Incentive Plan (amended and restated February 27, 2013) - Incorporated by reference to the Form 10-K Report for the year ended December 31, 2012
(ee)	Executive Strategic Incentive Plan II (effective January 1, 2001) - Incorporated by reference to the Form 10-K Report for the year ended December 31, 2002
(ff)	Amended and Restated Supplemental Executive Strategic Incentive Plan (amended and restated February 27, 2013) - Incorporated by reference to the Form 10-K Report for the year ended December 31, 2012
(gg)	Deferred Incentive Compensation Plan (amended and restated effective November 1, 2007) - Incorporated by reference to the Form 10-K Report for the year ended December 31, 2009
(hh)	Excess Benefits Plan (amended and restated effective January 1, 1989) - Incorporated by reference to the Form 10-K Report for the year ended December 31, 2002
(ii)	Amendment to Excess Benefits Plan I - Incorporated by reference to the Form 10-K Report for the year ended December 31, 2012
(jj)	Supplemental Benefits Plan (amended and restated January 1, 1989) - Incorporated by reference to the Form 10-K Report for the year ended December 31, 2002
(kk)	Amendment to Supplemental Benefits Plan I - Incorporated by reference to the Form 10-K Report for the year ended December 31, 2012
(ll)	Eaton Corporation Board of Directors Policy on Incentive Compensation, Stock Options and Other Equity Grants upon the Restatement of Financial Results - Incorporated by reference to the Form 10-K Report for the year ended December 31, 2015
(mm)	Amended and Restated Grantor Trust Agreement for Non-Employee Directors’ Deferred Fees Plans - effective January 1, 2010 - Incorporated by reference to the Form 10-K Report for the year ended December 31, 2010
(nn)	Amended and Restated Grantor Trust Agreement for Employees’ Deferred Compensation Plans - effective January 1, 2010 - Incorporated by reference to the Form 10-K Report for the year ended December 31, 2010
(oo)	Eaton Savings Plan 2016 Restatement - Incorporated by reference to the Form 10-K Report for the year ended December 31, 2015
(pp)	Eaton Personal Investment Plan 2015 Restatement - Incorporated by reference to the Form 10-K Report for the year ended December 31, 2015
(qq)	Performance Share Award Agreement - Incorporated by reference to the Form 10-K Report for the year ended December 31, 2015
(rr)	Form of Indemnification Agreement entered into with officers of Eaton Corporation - Incorporated by reference to the Form 10-K Report for the year ended December 31, 2015
(ss)	Amendment to Limited Eaton Service Supplemental Retirement Income Plan I- Incorporated by reference to the Form 10-K Report for the year ended December 31, 2015
(tt)	First Amendment to Eaton Savings Plan - Incorporated by reference to the Form 10-K Report for the year ended December 31, 2016
(uu)	Second Amendment to Eaton Savings Plan - Incorporated by reference to the Form 10-K Report for the year ended December 31, 2016
(vv)	First Amendment to Eaton Personal Investment Plan - Incorporated by reference to the Form 10-K Report for the year ended December 31, 2016

12

	(ww)	Second Amendment to Eaton Personal Investment Plan - Incorporated by reference to the Form 10-K Report for the year ended December 31, 2016
	(xx)	Amendment to Eaton Corporation Excess Benefits Plan - Incorporated by reference to the Form 10-K Report for the year ended December 31, 2016
	(yy)	Amendment to Eaton Corporation Supplemental Benefits Plan - Incorporated by reference to the Form 10-K Report for the year ended December 31, 2016
	(zz)	Second Amendment to Eaton Corporation Excess Benefits Plan II - Incorporated by reference to the Form 10-K Report for the year ended December 31, 2016
	(aaa)	Second Amendment to Limited Eaton Service Supplemental Retirement Income Plan II - Incorporated by reference to the Form 10-K Report for the year ended December 31, 2016
	(bbb)	Second Amendment to Eaton Corporation Supplemental Benefits Plan II - Incorporated by reference to the Form 10-K Report for the year ended December 31, 2016
	(ccc)	2016 RSU Grant Agreement - Incorporated by reference to the Form 10-K Report for the year ended December 31, 2016
	(ddd)	2016 Performance Share Grant Agreement - Incorporated by reference to the Form 10-K Report for the year ended December 31, 2016
	(eee)	Special 2016 Performance Share Grant Agreement - Incorporated by reference to the Form 10-K Report for the year ended December 31, 2016
14		Code of Ethics - Incorporated by reference to the definitive Proxy Statement filed on March 14, 2008
21		Subsidiaries of Eaton Corporation plc - Filed in conjunction with this Form 10-K Report *
23		Consent of Independent Registered Public Accounting Firm - Filed in conjunction with this Form 10-K Report *
24		Power of Attorney - Filed in conjunction with this Form 10-K Report *
31.1		Certification of Principal Executive Officer (Pursuant to the Sarbanes-Oxley Act of 2002, Section 302) - Filed in conjunction with this Form 10-K Report *
31.2		Certification of Principal Financial Officer (Pursuant to the Sarbanes-Oxley Act of 2002, Section 302) - Filed in conjunction with this Form 10-K Report *
32.1		Certification of Principal Executive Officer (Pursuant to the Sarbanes-Oxley Act of 2002, Section 906) - Filed in conjunction with this Form 10-K Report *
32.2		Certification of Principal Financial Officer (Pursuant to the Sarbanes-Oxley Act of 2002, Section 906) - Filed in conjunction with this Form 10-K Report *
101.INS		XBRL Instance Document *
101.SCH		XBRL Taxonomy Extension Schema Document *
101.CAL		XBRL Taxonomy Extension Calculation Linkbase Document *
101.DEF		XBRL Taxonomy Extension Definition Linkbase Document *
101.LAB		XBRL Taxonomy Extension Label Linkbase Document *
101.PRE		XBRL Taxonomy Extension Presentation Linkbase Document *

_______________________________

* Submitted electronically herewith.

Attached as Exhibit 101 to this report are the following formatted in XBRL (Extensible Business Reporting Language): (i) Consolidated Statements of Income for the years ended December 31, 2018, 2017 and 2016, (ii) Consolidated Statements of Comprehensive Income for the years ended December 31, 2018, 2017 and 2016 (iii) Consolidated Balance Sheets at December 31, 2018 and 2017, (iv) Consolidated Statements of Cash Flows for the years ended December 31, 2018, 2017 and 2016, (v) Consolidated Statements of Shareholders' Equity for the years ended December 31, 2018, 2017 and 2016 and (vi) Notes to Consolidated Financial Statements for the year ended December 31, 2018.

13

Item 16. Form 10-K Summary.

Not applicable.

14

SIGNATURES

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

			EATON CORPORATION plc
			Registrant
Date:	February 27, 2019	By:	/s/ Richard H. Fearon
			Richard H. Fearon
			(On behalf of the registrant and as Principal Financial Officer)

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

Date: February 27, 2019

Signature	Title
*		/s/ Richard H. Fearon
Craig Arnold	Chairman, Principal Executive Officer; Director	Richard H. Fearon	Principal Financial Officer, Director
/s/ Ken D. Semelsberger		*
Ken D. Semelsberger	Principal Accounting Officer	Todd M. Bluedorn	Director
*		*
Christopher M. Connor	Director	Michael J. Critelli	Director
*		*
Charles E. Golden	Director	Arthur E. Johnson	Director
*		/s/ Gregory R. Page
Deborah L. McCoy	Director	Gregory R. Page	Director
*		*
Sandra Pianalto	Director	Gerald B. Smith	Director
*
Dorothy C. Thompson	Director

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

15

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Shareholders and the Board of Directors of Eaton Corporation plc

Opinion on the Financial Statements

We have audited the accompanying consolidated balance sheets of Eaton Corporation plc (“the Company”) as of December 31, 2018 and 2017, and the related consolidated statements of income, comprehensive income, shareholders’ equity and cash flows for each of the three years in the period ended December 31, 2018, and the related notes (collectively referred to as the “consolidated financial statements”). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company at December 31, 2018 and 2017, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2018, in conformity with U.S. generally accepted accounting principles.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company's internal control over financial reporting as of December 31, 2018, based on criteria established in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework) and our report dated February 27, 2019 expressed an unqualified opinion thereon.

Basis for Opinion

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company’s financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

/s/ Ernst & Young LLP

We have served as the Company’s auditor since 1923.

Cleveland, Ohio

February 27, 2019

16

MANAGEMENT'S REPORT ON FINANCIAL STATEMENTS

We have prepared the accompanying consolidated financial statements and related information of Eaton Corporation plc ("Eaton") included herein for the three years ended December 31, 2018. The primary responsibility for the integrity of the financial information included in this annual report rests with management. The financial information included in this annual report has been prepared in accordance with accounting principles generally accepted in the United States based on our best estimates and judgments and giving due consideration to materiality. The opinion of Ernst & Young LLP, Eaton's independent registered public accounting firm, on those consolidated financial statements is included herein.

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

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

/s/ Craig Arnold	/s/ Richard H. Fearon	/s/ Ken D. Semelsberger
Principal Executive Officer	Principal Financial Officer	Principal Accounting Officer
February 27, 2019

17

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Shareholders and the Board of Directors of Eaton Corporation plc

Opinion on Internal Control over Financial Reporting

We have audited Eaton Corporation plc’s (“the Company”) internal control over financial reporting as of December 31, 2018, based on criteria established in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework) (the COSO criteria). In our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2018, based on the COSO criteria.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated balance sheets of the Company as of December 31, 2018 and 2017, and the related consolidated statements of income, comprehensive income, shareholders’ equity and cash flows for each of the three years in the period ended December 31, 2018 and the related notes and our report dated February 27, 2019 expressed an unqualified opinion thereon.

Basis for Opinion

The Company’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting included in the accompanying Management’s Report on Internal Control Over Financial Reporting. Our responsibility is to express an opinion on the Company’s internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects.

Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.

Definition and Limitations of Internal Control over Financial Reporting

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

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

/s/ Ernst & Young LLP

Cleveland, Ohio

February 27, 2019

18

MANAGEMENT'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING

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

Under the supervision and with the participation of Eaton's management, including our principal executive officer and principal financial officer, we conducted an evaluation of the effectiveness of the Company's internal control over financial reporting as of December 31, 2018. In conducting this evaluation, we used the framework set forth by the Committee of Sponsoring Organizations of the Treadway Commission in Internal Control - Integrated Framework (2013 Framework). Based on this evaluation under the framework referred to above, management concluded that the Company's internal control over financial reporting was effective as of December 31, 2018.

The independent registered public accounting firm Ernst & Young LLP has issued an audit report on the effectiveness of the Company's internal control over financial reporting as of December 31, 2018. This report is included herein.

/s/ Craig Arnold	/s/ Richard H. Fearon	/s/ Ken D. Semelsberger
Principal Executive Officer	Principal Financial Officer	Principal Accounting Officer
February 27, 2019

19

EATON CORPORATION plc

CONSOLIDATED STATEMENTS OF INCOME

	Year ended December 31
(In millions except for per share data)	2018			2017			2016
Net sales	$	21,609		$	20,404		$	19,747
Cost of products sold	14,511			13,756			13,396
Selling and administrative expense	3,548			3,526			3,464
Research and development expense	584			584			587
Interest expense - net	271			246			233
Gain on sale of business	—			1,077			—
Arbitration decision expense	275			—			—
Other (income) expense - net	(4		)	1			(51		)
Income before income taxes	2,424			3,368			2,118
Income tax expense	278			382			199
Net income	2,146			2,986			1,919
Less net income for noncontrolling interests	(1		)	(1		)	(3		)
Net income attributable to Eaton ordinary shareholders	$	2,145		$	2,985		$	1,916
Net income per share attributable to Eaton ordinary shareholders
Diluted	$	4.91		$	6.68		$	4.20
Basic	4.93			6.71			4.21
Weighted-average number of ordinary shares outstanding
Diluted	436.9			447.0			456.5
Basic	434.3			444.5			455.0
Cash dividends declared per ordinary share	$	2.64		$	2.40		$	2.28

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

20

EATON CORPORATION plc

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

	Year ended December 31
(In millions)	2018			2017			2016
Net income	$	2,146		$	2,986		$	1,919
Less net income for noncontrolling interests	(1		)	(1		)	(3		)
Net income attributable to Eaton ordinary shareholders	2,145			2,985			1,916
Other comprehensive income (loss), net of tax
Currency translation and related hedging instruments	(609		)	807			(570		)
Pensions and other postretirement benefits	(139		)	241			(6		)
Cash flow hedges	7			(4		)	(9		)
Other comprehensive income (loss) attributable to Eaton    ordinary shareholders	(741		)	1,044			(585		)
Total comprehensive income attributable to Eaton ordinary shareholders	$	1,404		$	4,029		$	1,331

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

21

EATON CORPORATION plc

CONSOLIDATED BALANCE SHEETS

	December 31
(In millions)	2018			2017
Assets
Current assets
Cash	$	283		$	561
Short-term investments	157			534
Accounts receivable - net	3,858			3,943
Inventory	2,785			2,620
Prepaid expenses and other current assets	507			679
Total current assets	7,590			8,337
Property, plant and equipment
Land and buildings	2,466			2,491
Machinery and equipment	6,106			6,014
Gross property, plant and equipment	8,572			8,505
Accumulated depreciation	(5,105		)	(5,003		)
Net property, plant and equipment	3,467			3,502
Other noncurrent assets
Goodwill	13,328			13,568
Other intangible assets	4,846			5,265
Deferred income taxes	293			253
Other assets	1,568			1,698
Total assets	$	31,092		$	32,623
Liabilities and shareholders’ equity
Current liabilities
Short-term debt	$	414		$	6
Current portion of long-term debt	339			578
Accounts payable	2,130			2,166
Accrued compensation	457			453
Other current liabilities	1,814			1,872
Total current liabilities	5,154			5,075
Noncurrent liabilities
Long-term debt	6,768			7,167
Pension liabilities	1,304			1,226
Other postretirement benefits liabilities	321			362
Deferred income taxes	349			538
Other noncurrent liabilities	1,054			965
Total noncurrent liabilities	9,796			10,258
Shareholders’ equity
Ordinary shares (423.6 million outstanding in 2018 and 439.9 million in 2017)	4			4
Capital in excess of par value	12,090			11,987
Retained earnings	8,161			8,669
Accumulated other comprehensive loss	(4,145		)	(3,404		)
Shares held in trust	(3		)	(3		)
Total Eaton shareholders’ equity	16,107			17,253
Noncontrolling interests	35			37
Total equity	16,142			17,290
Total liabilities and equity	$	31,092		$	32,623

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

22

EATON CORPORATION plc

CONSOLIDATED STATEMENTS OF CASH FLOWS

	Year ended December 31
(In millions)	2018			2017			2016
Operating activities
Net income	$	2,146		$	2,986		$	1,919
Adjustments to reconcile to net cash provided by operating activities
Depreciation and amortization	903			914			929
Deferred income taxes	(115		)	(206		)	(83		)
Pension and other postretirement benefits expense	159			208			235
Contributions to pension plans	(126		)	(473		)	(262		)
Contributions to other postretirement benefits plans	(25		)	(20		)	(30		)
Gain on sale of businesses	—			(843		)	—
Changes in working capital
Accounts receivable - net	(123		)	(231		)	(170		)
Inventory	(242		)	(202		)	34
Accounts payable	23			388			—
Accrued compensation	23			59			20
Accrued income and other taxes	(31		)	(4		)	30
Other current assets	71			2			(21		)
Other current liabilities	144			(203		)	(44		)
Other - net	(149		)	291			13
Net cash provided by operating activities	2,658			2,666			2,570
Investing activities
Capital expenditures for property, plant and equipment	(565		)	(520		)	(497		)
Proceeds from sale of business	—			607			—
Sales (purchases) of short-term investments - net	355			(298		)	(40		)
Payments for settlement of currency exchange contracts not designated as hedges - net	(110		)	—			—
Other - net	(78		)	(6		)	8
Net cash used in investing activities	(398		)	(217		)	(529		)
Financing activities
Proceeds from borrowings	410			1,000			631
Payments on borrowings	(574		)	(1,554		)	(653		)
Cash dividends paid	(1,149		)	(1,068		)	(1,037		)
Exercise of employee stock options	29			66			74
Repurchase of shares	(1,271		)	(850		)	(730		)
Employee taxes paid from shares withheld	(24		)	(22		)	(18		)
Other - net	(2		)	(14		)	(5		)
Net cash used in financing activities	(2,581		)	(2,442		)	(1,738		)
Effect of currency on cash	43			11			(28		)
Total increase (decrease) in cash	(278		)	18			275
Cash at the beginning of the period	561			543			268
Cash at the end of the period	$	283		$	561		$	543

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

23

EATON CORPORATION plc

CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY

	Ordinary shares					Capital in excess of par value		Retained earnings			Accumulated other comprehensive loss			Shares held in trust			Total Eaton shareholders' equity			Noncontrolling interests			Total equity
(In millions)	Shares		Dollars
Balance at January 1, 2016	458.8		$	5		$	11,701	$	7,409		$	(3,863	)	$	(3	)	$	15,249		$	45		$	15,294
Net income	—		—			—		1,916			—			—			1,916			3			1,919
Other comprehensive loss, net of tax											(585		)				(585		)				(585		)
Cash dividends paid	—		—			—		(1,037		)	—			—			(1,037		)	(2		)	(1,039		)
Issuance of shares under equity-based compensation plans - net (net of income tax benefit of $1)	2.4		—			144		(3		)	—			—			141			—			141
Changes in noncontrolling interest of consolidated subsidiaries - net	—		—			—		—			—			—			—			(2		)	(2		)
Repurchase of shares	(11.8	)	—			—		(730		)	—			—			(730		)	—			(730		)
Balance at December 31, 2016	449.4		5			11,845		7,555			(4,448		)	(3		)	14,954			44			14,998
Cumulative-effect adjustment upon adoption of ASU 2016-09	—		—			—		48			—			—			48			—			48
Net income	—		—			—		2,985			—			—			2,985			1			2,986
Other comprehensive income, net of tax											1,044						1,044						1,044
Cash dividends paid	—		—			—		(1,068		)	—			—			(1,068		)	(5		)	(1,073		)
Issuance of shares under equity-based compensation plans	2.0		—			142		(2		)	—			—			140			—			140
Changes in noncontrolling interest of consolidated subsidiaries - net	—		—			—		—			—			—			—			(3		)	(3		)
Repurchase of shares	(11.5	)	(1		)	—		(849		)	—			—			(850		)	—			(850		)
Balance at December 31, 2017	439.9		4			11,987		8,669			(3,404		)	(3		)	17,253			37			17,290
Cumulative-effect adjustment upon adoption of ASU 2014-09	—		—			—		(2		)	—			—			(2		)	—			(2		)
Cumulative-effect adjustment upon adoption of ASU 2016-16	—		—			—		(199		)	—			—			(199		)	—			(199		)
Net income	—		—			—		2,145			—			—			2,145			1			2,146
Other comprehensive loss, net of tax											(741		)				(741		)				(741		)
Cash dividends paid	—		—			—		(1,149		)	—			—			(1,149		)	(1		)	(1,150		)
Issuance of shares under equity-based compensation plans	1.2		—			103		(3		)	—			—			100			—			100
Changes in noncontrolling interest of consolidated subsidiaries - net	—		—			—		—			—			—			—			(2		)	(2		)
Repurchase of shares	(17.5	)	—			—		(1,300		)	—			—			(1,300		)	—			(1,300		)
Balance at December 31, 2018	423.6		$	4		$	12,090	$	8,161		$	(4,145	)	$	(3	)	$	16,107		$	35		$	16,142

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

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EATON CORPORATION plc

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

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

Note 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

General Information and Basis of Presentation

Eaton Corporation plc (Eaton or the Company) is a power management company with 2018 net sales of $21.6 billion. The Company provides energy-efficient solutions that help its customers effectively manage electrical, hydraulic and mechanical power more reliably, safely and sustainably. Eaton has approximately 99,000 employees in 59 countries and sells products to customers in more than 175 countries.

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

The consolidated financial statements include the accounts of Eaton and all subsidiaries and other entities it controls. Intercompany transactions and balances have been eliminated. The equity method of accounting is used for investments in associate companies where the Company has significant influence and generally a 20% to 50% ownership interest. Equity investments are evaluated for impairment whenever events or circumstances indicate the book value of the investment exceeds fair value. An impairment would exist if there is an other-than-temporary decline in value. Income from equity investments is reported in Other (income) expense - net. Eaton does not have off-balance sheet arrangements or financings with unconsolidated entities. In the ordinary course of business, the Company leases certain real properties and equipment, as described in Note 9.

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

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 reportable segments that were re-segmented, previously reported segment financial information has been updated for 2016 and 2017. See Note 16 for additional information related to these segments.

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

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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 an increase in Selling and administrative expense with a corresponding increase in Other income - net of $6 for the year ended December 31, 2018, a reduction in Selling and administrative expense with a corresponding decrease in Other income - net of $39 for the year ended December 31, 2017, and a reduction in Cost of products sold, Selling and administrative expense, and Research and development expense with a corresponding decrease in Other income - net of $56 for the year ended December 31, 2016.

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 added, 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 4 for additional information.

Goodwill and Indefinite Life Intangible Assets

Goodwill is evaluated annually for impairment as of July 1 using either a quantitative or qualitative analysis. Goodwill is tested for impairment at the reporting unit level, which is equivalent to Eaton's operating segments and based on the net assets for each segment, including goodwill and intangible assets. Goodwill is assigned to each operating segment, as this represents the lowest level that constitutes a business and is the level at which management regularly reviews the operating results. The Company performs a quantitative analysis using a discounted cash flow model and other valuation techniques, but may elect to perform a qualitative analysis. Additionally, goodwill is evaluated for impairment whenever an event occurs or circumstances change that would indicate that it is more likely than not that the fair value of an operating segment is less than its carrying amount.

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The annual goodwill impairment test was performed using a qualitative analysis in 2018 and 2017 and a quantitative analysis in 2016. A qualitative analysis is performed by assessing certain trends and factors, including projected market outlook and growth rates, forecasted and actual sales and operating profit margins, discount rates, industry data, and other relevant qualitative factors. These trends and factors are compared to, and based on, the assumptions used in the most recent quantitative analysis performed for each reporting unit. The results of the qualitative analyses did not indicate a need to perform quantitative analysis.

Goodwill impairment testing was also performed using a quantitative analysis for the Electrical Products, Vehicle and eMobility segments in the first quarter of 2018 due to a reorganization of the Company's businesses resulting in the creation of the eMobility segment. The Company used the relative fair value method to reallocate goodwill among these reporting units.

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

Based on these analyses performed in 2018 and 2017, the fair value of Eaton's reporting units continue to substantially exceed their respective carrying amounts and thus, no impairment exists.

Indefinite life intangible assets consist of certain trademarks. They are evaluated annually for impairment as of July 1 using either a quantitative or qualitative analysis to determine whether their fair values exceed their respective carrying amounts. Indefinite life intangible asset impairment testing for 2018 and 2017 was performed using a quantitative analysis. The Company determines the fair value of these assets using a royalty relief methodology similar to that employed when the associated assets were acquired, but using updated estimates of future sales, cash flows and profitability. Additionally, indefinite life intangible assets are evaluated for impairment whenever an event occurs or circumstances change that would indicate that it is more likely than not that the asset is impaired. For 2018 and 2017, the fair value of indefinite lived intangible assets exceeded the respective carrying value.

For additional information about goodwill and other intangible assets, see Note 6.

Other Long-Lived Assets

Depreciation and amortization for property, plant and equipment, and intangible assets subject to amortization, are generally computed by the straight-line method and included in Cost of products sold, Selling and administrative expense, and Research and development expense, as appropriate. Cost of buildings are depreciated generally over 40 years and machinery and equipment over 3 to 10 years. At December 31, 2018, the weighted-average amortization period for intangible assets subject to amortization was 17 years for patents and technology; 17 years for customer relationships; and 17 years for certain trademarks. Software is generally amortized up to a life of 15 years.

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

Retirement Benefits Plans

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

Net actuarial gains or losses are amortized to expense on a plan-by-plan basis when they exceed the accounting corridor. The Company’s corridors are set at either 8% or 10%, depending on the plan, of the greater of the plan assets or benefit obligations. Gains or losses outside of the corridor are subject to amortization over an average employee future service period that differs by plan, but is approximately 11 years on a weighted average basis. If most or all of the plan’s participants are no longer actively accruing benefits, the average life expectancy is used.

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Asset Retirement Obligations

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

Income Taxes

Deferred income tax assets and liabilities are determined based on the difference between the financial statement and tax basis of the respective assets and liabilities, using enacted tax rates in effect for the year when the differences are expected to reverse. Deferred income tax assets are recognized for income tax loss carryforwards and income tax credit carryforwards. Judgment is required in determining and evaluating income tax provisions and valuation allowances for deferred income tax assets. Eaton recognizes an income tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by taxing authorities, based on the technical merits of the position. Eaton evaluates and adjusts these accruals based on changing facts and circumstances. Eaton recognizes interest and penalties related to unrecognized income tax benefits in the provision for income tax expense. For additional information about income taxes, see Note 10.

Derivative Financial Instruments and Hedging Activities

Eaton uses derivative financial instruments to manage the exposure to the volatility in raw material costs, currency, and interest rates on certain debt. These instruments are marked to fair value in the accompanying Consolidated Balance Sheets. Changes in the fair value of derivative assets or liabilities (i.e., gains or losses) are recognized depending upon the type of hedging relationship and whether an instrument has been designated as a hedge. For those instruments that qualify for hedge accounting, Eaton designates the hedging instrument, based upon the exposure being hedged, as a cash flow hedge, a fair value hedge, or a hedge of a net investment in a foreign operation. Changes in fair value of these instruments that do not qualify for hedge accounting are recognized immediately in net income. See Note 14 for additional information about hedges and derivative financial instruments.

Recently Issued Accounting Pronouncements

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. ASU 2016-02 will require additional disclosures in the notes to the consolidated financial statements.

Eaton adopted the standard, and related amendments, in the first quarter of 2019 using the optional transition method and will not restate prior periods. The Company elected to use the package of practical expedients permitted under the transition guidance within the new standard, which among other things, allowed the carry forward of historical lease classification of existing leases. The Company made an accounting policy election to not recognize lease assets or liabilities for leases with a term of 12 months or less. Additionally, when accounting for leases, the Company combines payments for leased assets, related services and other components of a lease.

The Company is in the final stage of assessing the impact of adopting the standard. The Company collected the lease data required by the new standard, and has identified and is implementing the appropriate changes to business processes and controls to support recognition and disclosure under the new standard. In the first quarter of 2019, Eaton plans to conclude its testing of the new third-party lease accounting system. The Company expects to record a cumulative-effect adjustment of less than $1 to retained earnings as of January 1, 2019. Additionally, the adoption of the new standard will result in the recording of lease assets and lease liabilities for operating leases in the range of approximately $400 to $500 as of January 1, 2019. The Company does not expect the new standard to have a material impact to the Consolidated Statements of Income or Cash Flows.

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Note 2. SALE AND ACQUISITION OF BUSINESSES

Agreement to acquire controlling interest of Ulusoy Elektrik Imalat Taahhut ve Ticaret A.S.

On January 31, 2019, Eaton reached a definitive agreement to acquire an 82.275% controlling interest in Ulusoy Elektrik Imalat Taahhut ve Ticaret A.S., a leading manufacturer of electrical switchgear based in Ankara, Turkey, with a primary focus on medium voltage solutions for industrial and utility customers. Its sales for the 12 months ended September 30, 2018 were $126. The purchase price for the shares is approximately $214 on a cash and debt free basis. As required by the Turkish capital markets legislation, Eaton plans to file an application to execute a mandatory tender offer for the remaining shares shortly after the transaction closes. The transaction is subject to customary closing conditions and regulatory approvals.

Sale of heavy-duty and medium-duty commercial vehicle automated transmission business

On July 31, 2017, Eaton sold a 50% interest in its heavy-duty and medium-duty commercial vehicle automated transmission business for $600 in cash to Cummins, Inc. The new joint venture is named Eaton Cummins Automated Transmission Technologies (ECATT). In 2017, the Company recognized a pre-tax gain of $1,077, of which $533 related to the pre-tax gain from the $600 proceeds from the sale and $544 related to the Company’s remaining 50% investment in the joint venture being remeasured to fair value. The after-tax gain was $843. The fair value is based on the price paid to Eaton for the 50% interest sold to Cummins, Inc. and further supported by a discounted cash flow model. Eaton accounts for its investment on the equity method of accounting.

Note 3. ACQUISITION INTEGRATION CHARGES

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

	2018		2017		2016
Electrical Products	$	—	$	4	$	3
Electrical Systems and Services	—		—		1
Total acquisition integration charges before income taxes	—		4		4
Income taxes	—		2		1
Total after income taxes	$	—	$	2	$	3
Per ordinary share - diluted	$	—	$	—	$	0.01

Business segment acquisition integration charges in 2017 related to the integration of Ephesus Lighting, Inc. (Ephesus), which was acquired in 2015. The charges associated with Ephesus were included in Selling and administrative expense. Business segment acquisition integration charges in 2016 related to the integration of Ephesus and Oxalis Group Ltd. (Oxalis), which was acquired in 2015. The charges associated with Ephesus were included in Cost of products sold and Selling and administrative expense, while the charges associated with Oxalis were included in Cost of products sold. In Business Segment Information in Note 16, the charges reduced Operating profit of the related business segment.

Note 4.    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.

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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 added, 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 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 16.

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.

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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.

	Year ended December 31, 2018
Net sales	United States		Rest of World		Total
Electrical Products	$	4,112	$	3,012	$	7,124
Electrical Systems and Services	3,936		2,088		6,024
Hydraulics	1,190		1,566		2,756
	Original Equipment Manufacturers		Aftermarket, Distribution and End User
Aerospace	$	1,085	$	811	1,896
	Commercial		Passenger and Light Duty
Vehicle	$	1,759	$	1,730	3,489
eMobility					320
Total					$	21,609

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 $3,402 and $3,399 at December 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 Consolidated Balance Sheets on a contract-by-contract basis at the end of each reporting period. Unbilled receivables were $94 and $117 at December 31, 2018 and January 1, 2018, respectively, and are recorded in Prepaid expenses and other current assets. The decrease in unbilled receivables was primarily due to billings to customers for amounts previously recognized as revenue, partially offset by revenue recognized and not yet billed.

Changes in the deferred revenue liabilities are as follows:

	Deferred Revenue
Balance at January 1, 2018	$	227
Customer deposits and billings	967
Revenue recognized in the period	(939		)
Translation	(7		)
Balance at December 31, 2018	$	248

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 December 31, 2018 was approximately $5.3 billion. Eaton expects to recognize approximately 87% 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 consolidated financial statements was as follows:

	Year ended December 31, 2018
Consolidated Statements of Income	As Reported		Adjustment			Balances without Adoption of ASC 606
Net sales	$	21,609	$	(30	)	$	21,579
Cost of products sold	14,511		(20		)	14,491
Income before income taxes	2,424		(10		)	2,414
Income tax expense	278		(2		)	276
Net income	2,146		(8		)	2,138
Net income attributable to Eaton ordinary shareholders	$	2,145	$	(8	)	$	2,137

	December 31, 2018
Consolidated Balance Sheets	As Reported		Adjustment			Balances without Adoption of ASC 606
Assets
Accounts receivable - net	$	3,858	$	60		$	3,918
Inventory	2,785		18			2,803
Prepaid expenses and other current assets	507		(109		)	398
Deferred income taxes	293		(1		)	292
Liabilities and shareholders’ equity
Other current liabilities	$	1,814	$	(26	)	$	1,788
Eaton shareholders' equity	$	16,142	$	(6	)	$	16,136

Note 5. 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 closing 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	(36		)	(4		)	(40		)
Other adjustments	(17		)	—			(17		)
Balance at December 31, 2018	$	14		$	1		$	15

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Note 6. GOODWILL AND OTHER INTANGIBLE ASSETS

Changes in the carrying amount of goodwill by segment follow:

	December 31, 2016		Goodwill written off from sale of business			Translation		December 31, 2017		Translation			December 31, 2018
Electrical Products	$	6,418	$	—		$	260	$	6,678	$	(116	)	$	6,562
Electrical Systems and Services	4,203		(3		)	111		4,311		(70		)	4,241
Hydraulics	1,221		—			36		1,257		(45		)	1,212
Aerospace	938		—			9		947		(6		)	941
Vehicle	342		(52		)	4		294		(2		)	292
eMobility	79		—			2		81		(1		)	80
Total	$	13,201	$	(55	)	$	422	$	13,568	$	(240	)	$	13,328

A summary of other intangible assets follows:

	2018				2017
	Historical cost		Accumulated amortization		Historical cost		Accumulated amortization
Intangible assets not subject to amortization
Trademarks	$	1,626			$	1,654
Intangible assets subject to amortization
Customer relationships	$	3,463	$	1,600	$	3,586	$	1,475
Patents and technology	1,329		646		1,395		628
Trademarks	1,032		419		1,137		473
Other	92		31		99		30
Total intangible assets subject to amortization	$	5,916	$	2,696	$	6,217	$	2,606

Amortization expense related to intangible assets subject to amortization in 2018, and estimated amortization expense for each of the next five years, follows:

2018	$	368
2019	357
2020	352
2021	341
2022	332
2023	283

33

Note 7. DEBT

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

	2018			2017
5.60% notes due 2018 ($415 converted to floating rate by interest rate swap)	$	—		$	450
4.215% Japanese yen notes due 2018	—			88
6.95% notes due 2019 ($300 converted to floating rate by interest rate swap)	300			300
3.875% debentures due 2020 ($150 converted to floating rate by interest rate swap)	239			239
3.47% notes due 2021 ($275 converted to floating rate by interest rate swap)	300			300
8.10% debentures due 2022 ($100 converted to floating rate by interest rate swap)	100			100
2.75% senior notes due 2022 ($1,400 converted to floating rate by interest rate swap)	1,600			1,600
3.68% notes due 2023 ($200 converted to floating rate by interest rate swap)	300			300
0.75% euro notes due 2024	629			659
6.50% debentures due 2025	145			145
3.10% senior notes due 2027	700			700
7.65% debentures due 2029 ($50 converted to floating rate by interest rate swap)	200			200
4.00% senior notes due 2032	700			700
5.45% debentures due 2034 ($25 converted to floating rate by interest rate swap)	136			136
5.80% notes due 2037	240			240
4.15% senior notes due 2042	1,000			1,000
3.92% senior notes due 2047	300			300
5.25% to 8.875% notes (maturities ranging from 2019 to 2035, including $50 converted to floating rate by interest rate swap)	203			239
Other	15			49
Total long-term debt	7,107			7,745
Less current portion of long-term debt	(339		)	(578		)
Long-term debt less current portion	$	6,768		$	7,167

Substantially all these long-term debt instruments are fully and unconditionally guaranteed on an unsubordinated, unsecured basis by Eaton and certain of its direct and indirect subsidiaries (the Senior Notes). Further, as of December 31, 2018 all of these long-term debt instruments except the 3.875% debentures due 2020, the 3.47% notes due 2021, the 3.68% notes due 2023, and the 0.75% Euro notes due 2024 are registered by Eaton Corporation under the Securities Act of 1933, as amended (the Registered Senior Notes).

The Company maintains long-term revolving credit facilities totaling $2,000, consisting of a $500three-year revolving credit facility that will expire November 17, 2020, a $750five-year revolving credit facility that will expire October 14, 2021, and a $750five-year revolving credit facility that will expire November 17, 2022. The revolving credit facilities are used to support commercial paper borrowings and are fully and unconditionally guaranteed by Eaton and certain of its direct and indirect subsidiaries on an unsubordinated, unsecured basis. There were no borrowings outstanding under Eaton's revolving credit facilities at December 31, 2018 or 2017. The Company had available lines of credit of $1,079 from various banks primarily for the issuance of letters of credit, of which there was $265 of letters of credit issued thereunder at December 31, 2018. Borrowings outside the United States are generally denominated in local currencies.

The Company repaid the 5.60% notes on May 15, 2018 for $450 and the 4.215% Japanese yen notes on December 17, 2018 for $88. The Company repaid the 5.30% notes on March 15, 2017 for $250, the 6.10% debentures on June 29, 2017 for $289 and the 1.50% senior notes on November 2, 2017 for $1,000.

Short-term debt of $414 at December 31, 2018 included $388 of short-term commercial paper in the United States, which had a weighted average interest rate of 2.97%, and $26 of short-term debt outside the United States.

34

On September 15, 2017, a subsidiary of Eaton issued senior notes (the 2017 Senior Notes) with a face amount of $1,000. The 2017 Senior Notes are comprised of two tranches of $700 and $300, which mature in 2027 and 2047, respectively, with interest payable semi-annually at a respective rate of 3.1% and 3.9%. The issuer received proceeds totaling $993 from the issuance, net of financing costs. The 2017 Senior Notes are fully and unconditionally guaranteed on an unsubordinated, unsecured basis by Eaton and certain of its direct and indirect subsidiaries. The 2017 Senior Notes contain customary optional redemption and par call provisions. The 2017 Senior Notes also contain a provision which upon a change of control requires the Company to make an offer to purchase all or any part of the 2017 Senior Notes at a purchase price of 101% of the principal amount plus accrued and unpaid interest. The capitalized deferred financing fees are amortized in Interest expense-net over the respective terms of the 2017 Senior Notes. The 2017 Senior Notes are subject to customary non-financial covenants.

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

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

2019	$	339
2020	241
2021	302
2022	1,701
2023	301

Interest paid on debt follows:

2018	$	313
2017	293
2016	266

Note 8. RETIREMENT BENEFITS PLANS

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

Obligations and Funded Status

	United States pension liabilities						Non-United States pension liabilities						Other postretirement liabilities
	2018			2017			2018			2017			2018			2017
Funded status
Fair value of plan assets	$	3,068		$	3,585		$	1,560		$	1,727		$	37		$	55
Benefit obligations	(3,633		)	(3,961		)	(2,285		)	(2,399		)	(378		)	(448		)
Funded status	$	(565	)	$	(376	)	$	(725	)	$	(672	)	$	(341	)	$	(393	)
Amounts recognized in the Consolidated    Balance Sheets
Non-current assets	$	—		$	82		$	58		$	136		$	—		$	—
Current liabilities	(20		)	(15		)	(24		)	(25		)	(20		)	(31		)
Non-current liabilities	(545		)	(443		)	(759		)	(783		)	(321		)	(362		)
Total	$	(565	)	$	(376	)	$	(725	)	$	(672	)	$	(341	)	$	(393	)
Amounts recognized in Accumulated other    comprehensive loss (pretax)
Net actuarial (gain) loss	$	1,153		$	1,059		$	683		$	596		$	(20	)	$	19
Prior service cost (credit)	7			4			27			8			(32		)	(46		)
Total	$	1,160		$	1,063		$	710		$	604		$	(52	)	$	(27	)

35

Change in Benefit Obligations

	United States pension liabilities						Non-United States pension liabilities						Other postretirement liabilities
	2018			2017			2018			2017			2018			2017
Balance at January 1	$	3,961		$	3,771		$	2,399		$	2,314		$	448		$	473
Service cost	100			96			63			71			2			3
Interest cost	122			123			52			55			13			14
Actuarial (gain) loss	(272		)	271			(16		)	(148		)	(39		)	2
Gross benefits paid	(282		)	(301		)	(112		)	(97		)	(67		)	(74		)
Currency translation	—			—			(124		)	223			(4		)	3
Plan amendments	4			1			21			—			—			—
Other	—			—			2			(19		)	25			27
Balance at December 31	$	3,633		$	3,961		$	2,285		$	2,399		$	378		$	448
Accumulated benefit obligation	$	3,506		$	3,802		$	2,175		$	2,283

Change in Plan Assets

	United States pension liabilities						Non-United States pension liabilities						Other postretirement liabilities
	2018			2017			2018			2017			2018			2017
Balance at January 1	$	3,585		$	2,969		$	1,727		$	1,478		$	55		$	74
Actual return on plan assets	(252		)	543			(72		)	131			—			8
Employer contributions	17			374			109			99			25			20
Gross benefits paid	(282		)	(301		)	(112		)	(97		)	(67		)	(74		)
Currency translation	—			—			(93		)	135			—			—
Other	—			—			1			(19		)	24			27
Balance at December 31	$	3,068		$	3,585		$	1,560		$	1,727		$	37		$	55

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

	United States pension liabilities				Non-United States pension liabilities
	2018		2017		2018		2017
Projected benefit obligation	$	3,633	$	3,540	$	905	$	966
Accumulated benefit obligation	3,506		3,380		853		911
Fair value of plan assets	3,068		3,081		158		175

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

	United States pension liabilities						Non-United States pension liabilities						Other postretirement liabilities
	2018			2017			2018			2017			2018			2017
Balance at January 1	$	1,063		$	1,235		$	604		$	779		$	(27	)	$	(39	)
Prior service cost arising during the year	4			1			21			—			—			—
Net loss (gain) arising during the year	233			(28		)	161			(185		)	(36		)	(2		)
Currency translation	—			—			(35		)	66			(2		)	1
Less amounts included in expense during the year	(140		)	(145		)	(41		)	(56		)	13			13
Net change for the year	97			(172		)	106			(175		)	(25		)	12
Balance at December 31	$	1,160		$	1,063		$	710		$	604		$	(52	)	$	(27	)

36

Benefits Expense

	United States pension benefit expense									Non-United States pension benefit expense									Other postretirement benefits expense
	2018			2017			2016			2018			2017			2016			2018			2017			2016
Service cost	$	100		$	96		$	111		$	63		$	71		$	63		$	2		$	3		$	4
Interest cost	122			123			125			52			55			62			13			14			17
Expected return on plan assets	(253		)	(244		)	(250		)	(105		)	(94		)	(92		)	(3		)	(4		)	(6		)
Amortization	94			83			92			39			51			33			(13		)	(13		)	(9		)
	63			58			78			49			83			66			(1		)	—			6
Settlements and special termination benefits	46			62			81			2			5			3			—			—			1
Total expense	$	109		$	120		$	159		$	51		$	88		$	69		$	(1	)	$	—		$	7

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

The estimated pretax net amounts that will be recognized from Accumulated other comprehensive loss into net periodic benefit cost in 2019 follow:

	United States pension liabilities		Non-United States pension liabilities		Other postretirement liabilities
Actuarial loss	$	113	$	36	$	—
Prior service cost (credit)	1		3		(14		)
Total	$	114	$	39	$	(14	)

Retirement Benefits Plans Assumptions

For purposes of determining liabilities related to pension plans and other postretirement benefits plans in the United States, in 2016 and 2017, the Company used 2014 mortality tables and generational improvement scales that are based on MP-2016 and MP-2017, respectively. In 2018, for the majority of its plans in the United States, the Company updated its mortality assumption to use tables that are based on the Company's own experience and a generational improvement scale that is based on MP-2018.

To estimate the service and interest cost components of net periodic benefit cost for the vast majority of its defined benefits pension and other postretirement benefits plans, the Company used a spot rate approach by applying the specific spot rates along the yield curve used to measure the benefit obligation at the beginning of the period to the relevant projected cash flows.

37

Pension Plans

	United States pension plans						Non-United States pension plans
	2018		2017		2016		2018		2017		2016
Assumptions used to determine benefit obligation at year-end
Discount rate	4.28	%	3.64	%	4.12	%	2.83	%	2.62	%	2.63	%
Rate of compensation increase	3.14	%	3.15	%	3.15	%	3.10	%	3.11	%	3.13	%
Assumptions used to determine expense
Discount rate used to determine benefit obligation	3.64	%	4.12	%	4.22	%	2.62	%	2.63	%	3.46	%
Discount rate used to determine service cost	3.78	%	4.31	%	4.35	%	3.54	%	3.38	%	4.13	%
Discount rate used to determine interest cost	3.19	%	3.40	%	3.42	%	2.31	%	2.34	%	3.07	%
Expected long-term return on plan assets	7.52	%	7.90	%	8.50	%	6.40	%	6.30	%	6.62	%
Rate of compensation increase	3.15	%	3.15	%	3.18	%	3.11	%	3.13	%	3.12	%

The expected long-term rate of return on pension assets was determined for each country and reflects long-term historical data taking into account each plan's target asset allocation. The expected long-term rates of return on pension assets for United States pension plans and Non-United States pension plans for 2019 are 7.25% and 6.42%, respectively. The discount rates were determined using appropriate bond data for each country.

Other Postretirement Benefits Plans

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

	Other postretirement benefits plans
	2018		2017		2016
Assumptions used to determine benefit obligation at year-end
Discount rate	4.23	%	3.55	%	3.96	%
Health care cost trend rate assumed for next year	7.10	%	8.25	%	7.35	%
Ultimate health care cost trend rate	4.75	%	4.75	%	4.75	%
Year ultimate health care cost trend rate is achieved	2028		2027		2026
Assumptions used to determine expense
Discount rate used to determine benefit obligation	3.55	%	3.96	%	4.04	%
Discount rate used to determine service cost	3.62	%	4.11	%	4.26	%
Discount rate used to determine interest cost	3.04	%	3.18	%	3.12	%
Initial health care cost trend rate	8.25	%	7.35	%	7.10	%
Ultimate health care cost trend rate	4.75	%	4.75	%	4.75	%
Year ultimate health care cost trend rate is achieved	2027		2026		2025

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

	1% increase		1% decrease
Effect on total service and interest cost	$	1	$	—
Effect on other postretirement liabilities	11		(10		)

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Employer Contributions to Retirement Benefits Plans

Contributions to pension plans that Eaton expects to make in 2019, and made in 2018, 2017 and 2016, follow:

	2019		2018		2017		2016
United States plans	$	20	$	17	$	374	$	160
Non-United States plans	96		109		99		102
Total contributions	$	116	$	126	$	473	$	262

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

	Estimated United States pension payments		Estimated non-United States pension payments		Estimated other postretirement benefit payments
					Gross		Medicare prescription drug subsidy
2019	$	299	$	86	$	40	$	(2	)
2020	291		88		36		(2		)
2021	296		90		32		(1		)
2022	297		94		33		—
2023	294		98		30		—
2024 - 2028	1,440		539		126		(2		)

Pension Plan Assets

Investment policies and strategies are developed on a country specific basis. The United States plans, representing 66% of worldwide pension assets, and the United Kingdom plans representing 27% of worldwide pension assets, are invested primarily for growth, as the majority of the assets are in plans with active participants and ongoing accruals. In general, the plans have their primary allocation to diversified global equities, primarily through index funds in the form of common collective and other trusts. The United States plans' target allocation is 25% United States equities, 25% non-United States equities, 8% real estate (primarily equity of real estate investment trusts), 37% debt securities and 5% other, including hedge funds, private equity and cash equivalents. The United Kingdom plans' target asset allocations are 62% equities and the remainder in debt securities, cash equivalents and real estate investments. The equity risk for the plans is managed through broad geographic diversification and diversification across industries and levels of market capitalization. The majority of debt allocations for these plans are longer duration government and corporate debt. The United States, United Kingdom and Canada pension plans are authorized to use derivatives to achieve more economically desired market exposures and to use futures, swaps and options to gain or hedge exposures.

Fair Value Measurements

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

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

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

Level 3 - Unobservable prices or inputs.

Certain investments that are measured at fair value using the net asset value per share practical expedient have not been categorized in the fair value hierarchy and are being presented in the tables to permit a reconciliation to total plan assets.

39

Pension Plans

A summary of the fair value of pension plan assets at December 31, 2018 and 2017, follows:

	Total		Quoted prices in active markets for identical assets (Level 1)		Other observable inputs (Level 2)		Unobservable inputs (Level 3)1
2018
Common collective trusts
Non-United States equity and global equities	$	612	$	—	$	612	$	—
United States equity	50		—		50		—
Fixed income	483		—		483		—
Fixed income securities	721		—		721		—
United States treasuries	261		261		—		—
Bank loans	107		—		107		—
Real estate	202		181		—		21
Equity securities	51		51		—		—
Cash equivalents	152		104		48		—
Exchange traded funds	60		60		—		—
Other	90		—		15		75
Common collective and other trusts measured at net asset value	1,834
Money market funds measured at net asset value	5
Total pension plan assets	$	4,628	$	657	$	2,036	$	96

¹These pension plan assets include private real estate, private credit and private equity funds that generally have redemption notice periods of six months or longer, and are not eligible for redemption until the underlying assets are liquidated or distributed. The Company has unfunded commitments to these funds of approximately$180atDecember 31, 2018, which will be satisfied by a reallocation of pension plan assets.

40

	Total		Quoted prices in active markets for identical assets (Level 1)		Other observable inputs (Level 2)		Unobservable inputs (Level 3)1
2017
Common collective trusts
Non-United States equity and global equities	$	741	$	—	$	741	$	—
United States equity	86		—		86		—
Fixed income	478		—		478		—
Fixed income securities	709		—		709		—
United States treasuries	67		67		—		—
Bank loans	161		—		161		—
Real estate	239		220		—		19
Equity securities	139		139		—		—
Cash equivalents	86		51		35		—
Exchange traded funds	224		224		—		—
Other	81		—		8		73
Common collective and other trusts measured at net asset value	2,225
Hedge funds measured at net asset value	67
Money market funds measured at net asset value	9
Total pension plan assets	$	5,312	$	701	$	2,218	$	92

¹These pension plan assets include private real estate and private equity funds that generally have redemption notice periods of six months or longer, and are not eligible for redemption until the underlying assets are liquidated or distributed. The Company has unfunded commitments to these funds of approximately$20atDecember 31, 2017, which will be satisfied by a reallocation of pension plan assets.

The fair value measurement of plan assets using significant unobservable inputs (Level 3) changed during 2017 and 2018 due to the following:

	Real estate			Other			Total
Balance at December 31, 2016	$	6		$	95		$	101
Actual return on plan assets:
Gains (losses) relating to assets still held at year-end	1			(5		)	(4		)
Purchases, sales, settlements - net	12			(17		)	(5		)
Transfers into or out of Level 3	—			—			—
Balance at December 31, 2017	19			73			92
Actual return on plan assets:
Gains (losses) relating to assets still held at year-end	(1		)	—			(1		)
Purchases, sales, settlements - net	3			2			5
Transfers into or out of Level 3	—			—			—
Balance at December 31, 2018	$	21		$	75		$	96

41

Other Postretirement Benefits Plans

A summary of the fair value of other postretirement benefits plan assets at December 31, 2018 and 2017, follows:

	Total		Quoted prices in active markets for identical assets (Level 1)		Other observable inputs (Level 2)		Unobservable inputs (Level 3)
2018
Cash equivalents	$	6	$	6	$	—	$	—
Common collective and other trusts measured at net asset value	31
Total other postretirement benefits plan assets	$	37	$	6	$	—	$	—

	Total		Quoted prices in active markets for identical assets (Level 1)		Other observable inputs (Level 2)		Unobservable inputs (Level 3)
2017
Cash equivalents	$	7	$	7	$	—	$	—
Common collective and other trusts measured at net asset value	48
Total other postretirement benefits plan assets	$	55	$	7	$	—	$	—

Valuation Methodologies

Following is a description of the valuation methodologies used for pension and other postretirement benefits plan assets measured at fair value. There have been no changes in the methodologies used at December 31, 2018 and 2017.

Common collective and other trusts - Valued at the net unit value of units held by the trust at year end. The unit value is determined by the total value of fund assets divided by the total number of units of the fund owned. The equity investments in collective trusts are predominantly in index funds for which the underlying securities are actively traded in public markets based upon readily measurable prices. The investments in other trusts are predominantly in exchange traded funds for which the underlying securities are actively traded in public markets based upon readily measurable prices. Common collective and other trusts measured at fair value using the net asset value per share practical expedient have not been categorized in the fair value hierarchy and are being presented in the tables above to permit a reconciliation of the fair value hierarchy to the total plan assets.

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

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

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

42

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

Real estate - Consists of direct investments in the stock of publicly traded companies and investments in pooled funds that invest directly in real estate. The publicly traded companies are valued based on the closing price reported in an active market on which the individual securities are traded and as such are classified as Level 1. The pooled funds rely on appraisal based valuations and as such are classified as Level 3.

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

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

Hedge funds - Consists of direct investments in hedge funds through limited partnership interests. Net asset values are based on the estimated fair value of the ownership interest in the investment as determined by the General Partner. The majority of the holdings of the hedge funds are in equity securities traded on public exchanges. The investment terms of the hedge funds allow capital to be redeemed quarterly given prior notice with certain limitations. Hedge funds measured at fair value using the net asset value per share practical expedient have not been categorized in the fair value hierarchy and are being presented in the tables above to permit a reconciliation of the fair value hierarchy to the total plan assets.

Money market funds - Money market funds measured at fair value using the net asset value per share practical expedient have not been categorized in the fair value hierarchy and are being presented in the tables above to permit a reconciliation of the fair value hierarchy to the total plan assets.

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

For additional information regarding fair value measurements, see Note 13.

Defined Contribution Plans

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

2018	$	124
2017	114
2016	72

43

Note 9. COMMITMENTS AND CONTINGENCIES

Legal Contingencies

Eaton is subject to a broad range of claims, administrative and legal proceedings such as lawsuits that relate to contractual allegations, tax audits, patent infringement, personal injuries, antitrust matters and employment-related matters. Eaton is also subject to asbestos claims from historic products which may have contained asbestos. 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. During the fourth quarter of 2016, the Company was able to resolve several insurance matters. In total, the income from insurance matters was $68.

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 opined, among other things, that the value contributed to the Trust for a release of the guaranty was below reasonably equivalent value, and that an inability of Pneumo to satisfy future liabilities could result in plaintiffs suing Pepsi under various theories. Cooper submitted various expert reports and, among other things, Cooper’s experts opined that Pepsi had 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. On July 11, 2018, the arbitration panel made certain findings and concluded that the value contributed to the Trust did not constitute reasonably equivalent value, but ordered the parties to recalculate the amount that should have been contributed to the Trust as of the date of the 2011 transaction. Based on the findings made by the panel and the recalculation ordered by the panel, Cooper believed that no additional amount should be contributed. Pepsi argued that an additional $347 should be contributed. Cooper and its expert disagreed with Pepsi’s argument and believed that Pepsi’s recalculation was flawed and failed to comply with the instructions of the panel. On August 23, 2018, the panel issued its final award and ordered Cooper to pay $293 to Pneumo Abex. On August 30, 2018, Pepsi sought to confirm the award in Texas state court, which Cooper opposed on October 9, 2018. Cooper further requested that the court vacate the award on various grounds, including that Cooper was prejudiced by the conduct of the proceedings, the panel exceeded its powers, and because the panel denied Cooper a full and fair opportunity to present certain evidence. The court confirmed the award at the confirmation hearing, which was held on October 12, 2018. On November 2, 2018, the Company appealed. On November 28, 2018, the Company paid $297, the full judgment plus accrued post-judgment interest, to Pneumo Abex and preserved its rights, including to pursue the appeal, which is pending.

Environmental Contingencies

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

Eaton is involved in remedial response and voluntary environmental remediation at a number of sites, including certain of its currently-owned or formerly-owned plants. The Company has also been named a potentially responsible party under the United States federal Superfund law, or the state equivalents thereof, at a number of disposal sites. The Company became involved in these sites as a result of government action or in connection with business acquisitions. At the end of 2018, the Company was involved with a total of 113 sites worldwide, including the Superfund sites mentioned above, with none of these sites being individually significant to the Company.

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Remediation activities, generally involving soil and/or groundwater contamination, include pre-cleanup activities such as fact finding and investigation, risk assessment, feasibility study, design and action planning, performance (where actions may range from monitoring, to removal of contaminants, to installation of longer-term remediation systems), and operation and maintenance of a remediation system. The extent of expected remediation activities and costs varies by site. A number of factors affect the cost of environmental remediation, including the number of parties involved at a particular site, the determination of the extent of contamination, the length of time the remediation may require, the complexity of environmental regulations, and the continuing advancement of remediation technology. Taking these factors into account, Eaton has estimated the costs of remediation, which will be paid over a period of years. The Company accrues an amount on an undiscounted basis, consistent with the estimates of these costs, when it is probable that a liability has been incurred. Actual results may differ from these estimates. At December 31, 2018 and 2017, the Company had an accrual totaling $116 and $120, respectively, for these costs.

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

Warranty Accruals

Product warranty accruals are established at the time the related sale is recognized through a charge to Cost of products sold. Warranty accrual estimates are based primarily on historical warranty claim experience and specific customer contracts. Provisions for warranty accruals are comprised of basic warranties for products sold, as well as accruals for product recalls and other events when they are known and estimable. A summary of the current and long-term warranty accruals follows:

	2018			2017			2016
Balance at January 1	$	188		$	180		$	195
Provision	139			163			117
Settled	(145		)	(156		)	(130		)
Other	(6		)	1			(2		)
Balance at December 31	$	176		$	188		$	180

Lease Commitments

Eaton leases certain real properties and equipment. A summary of minimum rental commitments at December 31, 2018 under noncancelable operating leases, which expire at various dates and in most cases contain renewal options, for each of the next five years and thereafter in the aggregate, follow:

2019	$	165
2020	133
2021	106
2022	75
2023	53
Thereafter	110
Total noncancelable lease commitments	$	642

A summary of rental expense follows:

2018	$	232
2017	222
2016	220

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Note 10. INCOME TAXES

Eaton Corporation plc is domiciled in Ireland. Income (loss) before income taxes and income tax (benefit) expense are summarized below based on the geographic location of the operation to which such earnings and income taxes are attributable.

	Income (loss) before income taxes
	2018			2017			2016
Ireland	$	(365	)	$	(1,090	)	$	(923	)
Foreign	2,789			4,458			3,041
Total income before income taxes	$	2,424		$	3,368		$	2,118

	Income tax expense (benefit)
	2018			2017			2016
Current
Ireland	$	47		$	1		$	2
Foreign
United States	115			123			93
Non-United States	255			234			209
Total current income tax expense	417			358			304
Deferred
Ireland	6			—			2
Foreign
United States	(122		)	82			(77		)
Non-United States	(23		)	(58		)	(30		)
Total deferred income tax expense (benefit)	(139		)	24			(105		)
Total income tax expense	$	278		$	382		$	199

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Reconciliations of income taxes from the Ireland national statutory rate of 25% to the consolidated effective income tax rate follow:

	2018		2017		2016
Income taxes at the applicable statutory rate	25.0	%	25.0	%	25.0	%
Ireland operations
Ireland tax on trading income	(2.0	)%	—	%	(0.3	)%
Nondeductible interest expense	7.8	%	8.2	%	11.5	%
Ireland Other - net	0.1	%	—	%	—	%
Foreign operations
United States operations (earnings taxed at other than     the applicable statutory rate)	0.2	%	1.7	%	0.1	%
U.S. federal tax rate change	—	%	(7.5	)%	—	%
U.S. tax on foreign earnings	—	%	4.8	%	—	%
U.S. foreign tax credit	(0.2	)%	(3.9	)%	0.6	%
Credit for research activities	(0.8	)%	(0.5	)%	(0.8	)%
Tax on foreign currency loss	(1.6	)%	—	%	—	%
U.S. Other - net	2.4	%	3.2	%	2.5	%
Non-U.S. operations (earnings taxed at other than    the applicable statutory tax rate)	(19.8	)%	(22.9	)%	(26.8	)%
Non-U.S. operations - other items	0.7	%	0.4	%	0.9	%
Worldwide operations
Adjustments to tax liabilities	1.1	%	(1.8	)%	(2.5	)%
Adjustments to valuation allowances	(1.4	)%	4.6	%	(0.8	)%
Effective income tax expense rate	11.5	%	11.3	%	9.4	%

During 2018, income tax expense of $278 was recognized (an effective tax rate of 11.5%) compared to income tax expense of $382 for 2017 (an effective tax rate of 11.3%) and income tax expense of $199 for 2016 (an effective tax rate of 9.4%). The 2018 effective tax rate includes a tax benefit of $69 on the arbitration decision expense discussed in Note 9. The 2017 effective tax rate includes tax expense of $234 on the gain related to the sale of a business discussed in Note 2 and a tax benefit of $62 related to the U.S. Tax Cuts and Jobs Act (TCJA) which is discussed in further detail below. Excluding the one-time impacts of the 2018 arbitration decision, the 2017 sale of business, and the 2017 TCJA, the effective tax rate for 2018 was 12.8% compared to 9.2% for 2017. The increase in the tax rate from 2017 to 2018 was due to greater levels of income in higher tax jurisdictions and an increase in tax contingencies offset by net decreases of related valuation allowances. The decrease from 9.4% for 2016 compared to 9.2% for 2017 was due to the resolution of tax contingencies in various tax jurisdictions and the excess tax benefits recognized for employee share-based payments pursuant to the adoption of Accounting Standards Update 2016-09, Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting.

The TCJA was enacted on December 22, 2017, which reduced the U.S. federal corporate tax rate from 35% to 21% and required a one-time transition tax on certain unremitted earnings of non-U.S. subsidiaries owned directly or indirectly by U.S. subsidiaries of the Company. In December 2017, the Company recorded a provisional tax benefit amount of $79 for the impact of the tax rate change on deferred tax balances and a provisional tax expense of $17 for the one-time transition tax, for a net tax benefit of $62. During 2018, the Company finalized its accounting for the 2017 enactment of the TCJA and recorded an adjustment of $17 tax expense, primarily related to the one-time transition tax, resulting in a final net tax benefit of $45.

No provision has been made for income taxes on undistributed earnings of foreign subsidiaries of approximately $25.5 billion at December 31, 2018, since it is the Company's intention to indefinitely reinvest undistributed earnings of its foreign subsidiaries. It is not practicable to estimate the additional income taxes and applicable withholding taxes that would be payable on the remittance of such undistributed earnings.

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The Company expects to deploy capital to those markets which offer particularly attractive growth opportunities. The cash that is permanently reinvested is typically used to expand operations either organically or through acquisitions. In addition, the Company expects that minimal to no Irish tax would apply to dividends paid to the Irish parent due to the impact of the Irish foreign tax credit system. The Company's public dividends and share repurchases are funded primarily from Non-U.S. operations.

Worldwide income tax payments, net of tax refunds, follow:

2018	$	371
2017	288
2016	272

Deferred Income Tax Assets and Liabilities

Components of noncurrent deferred income taxes follow:

	2018			2017
	Noncurrent assets and liabilities			Noncurrent assets and liabilities
Accruals and other adjustments
Employee benefits	$	481		$	430
Depreciation and amortization	(1,198		)	(1,324		)
Other accruals and adjustments	434			380
Ireland income tax loss carryforwards	1			1
Foreign income tax loss carryforwards	1,915			1,962
Foreign income tax credit carryforwards	396			404
Valuation allowance for income tax loss and income tax    credit carryforwards	(2,032		)	(1,992		)
Other valuation allowances	(53		)	(146		)
Total deferred income taxes	$	(56	)	$	(285	)

At December 31, 2018, Eaton Corporation plc and certain Irish subsidiaries had tax loss carryforwards that are available to reduce future taxable income and tax liabilities. These carryforwards and their respective expiration dates are summarized below:

	2019 through 2023		2024 through 2028		2029 through 2033		2034 through 2043		Not subject to expiration		Valuation allowance
Ireland income tax loss carryforwards	$	—	$	—	$	—	$	—	$	8	$	—
Ireland deferred income tax assets for income tax loss carryforwards	—		—		—		—		1		(1		)

At December 31, 2018, the Company's foreign subsidiaries, including all U.S. and non-U.S. subsidiaries, had income tax loss carryforwards and income tax credit carryforwards that are available to reduce future taxable income or tax liabilities. These carryforwards and their respective expiration dates are summarized below:

	2019 through 2023		2024 through 2028		2029 through 2033		2034 through 2043		Not subject to expiration		Valuation allowance
Foreign income tax loss carryforwards	$	929	$	130	$	7,433	$	788	$	3,450	$	—
Foreign deferred income tax assets for income tax loss carryforwards	112		41		686		225		892		(1,790		)
Foreign deferred income tax assets for income tax loss carryforwards after ASU 2013-11	99		36		672		216		892		(1,790		)
Foreign income tax credit carryforwards	116		188		104		120		31		(241		)
Foreign income tax credit carryforwards after ASU 2013-11	80		178		32		75		31		(241		)

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Recoverability of Deferred Income Tax Assets

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

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

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

Adoption of Accounting Policy

In January 2018 the FASB issued ASU 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from accumulated other comprehensive income (AOCI), which gives companies the option to reclassify to retained earnings certain income tax effects resulting from the TCJA related to items in AOCI that the FASB refers to as having been stranded in AOCI.

The new guidance may be applied retrospectively to each period in which the effect of the TCJA is recognized, or in the period of adoption. Companies must adopt this guidance for years beginning after December 15, 2018 and interim periods within those years. Early adoption is also permitted for periods for which financial statements have not yet been issued or made available for issuance. Eaton elected to early adopt ASU 2018-02 in the fourth quarter of 2018. Eaton elected not to reclassify any income tax effects resulting from the TCJA from accumulated other comprehensive loss to retained earnings. The Company’s policy is to release income tax effects from AOCI when individual units of account are sold, terminated, or extinguished.

Unrecognized Income Tax Benefits

A summary of gross unrecognized income tax benefits follows:

	2018			2017			2016
Balance at January 1	$	735		$	629		$	584
Increases and decreases as a result of positions taken during prior years
Transfers from valuation allowances	2			—			—
Other increases, including currency translation	164			10			21
Other decreases, including currency translation	(35		)	(30		)	(24		)
Increases as a result of positions taken during the current year	69			162			90
Decreases relating to settlements with tax authorities	(3		)	(10		)	(19		)
Decreases as a result of a lapse of the applicable statute of limitations	(19		)	(26		)	(23		)
Balance at December 31	$	913		$	735		$	629

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Eaton recognizes an income tax benefit from an uncertain tax position only if it is more likely than not that the benefit would be sustained upon examination by taxing authorities, based on the technical merits of the position. The Company evaluates and adjusts the amount of unrecognized income tax benefits based on changes in facts and circumstances. The Company does not enter into any of the United States Internal Revenue Service (IRS) Listed Transactions as set forth in Treasury Regulation 1.6011-4.

If all unrecognized income tax benefits were recognized, the net impact on the provision for income tax expense would be $599, which includes all impacts of the TCJA and interaction with deferred tax netting pursuant to ASU 2013-11. The increase in gross unrecognized income tax benefits for positions taken in prior years was primarily offset by net decreases in related valuation allowances.

As of December 31, 2018 and 2017, Eaton had accrued approximately $74 and $80, respectively, for the payment of worldwide interest and penalties, which are not included in the table of unrecognized income tax benefits above. Eaton recognizes interest and penalties related to unrecognized income tax benefits in the provision for income tax expense.

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

Eaton or its subsidiaries file income tax returns in Ireland and many countries around the world. With only a few exceptions, Irish and non-United States subsidiaries of Eaton are no longer subject to examinations for years before 2007.

The United States Internal Revenue Service (“IRS”) has completed its examination of the consolidated income tax returns of the Company’s United States subsidiaries (“Eaton US”) for 2005 through 2010 and has issued Statutory Notices of Deficiency (Notices) as discussed below. The statute of limitations on these tax years remains open until the matters are resolved. The IRS has also completed its examination of the consolidated income tax returns of Eaton US for 2011 through 2013 and has issued proposed adjustments as discussed below. The statute of limitations on these tax years remains open until June 30, 2020. The IRS is currently examining tax years 2014 through 2016. The statute of limitations for tax years 2014 through 2016 is open until September 30, 2020. Tax year 2017 is still subject to examination by the IRS.

Eaton US is also under examination for the income tax filings in various states and localities of the United States. Income tax returns of states and localities within the United States will be reopened to the extent of United States federal income tax adjustments, if any, going back to 2005 when those audit years are finalized. Some states and localities might not limit their assessment to the United States federal adjustments, and may require the opening of the entire tax year.

In 2011, the IRS issued a Notice for Eaton US for the 2005 and 2006 tax years (the 2011 Notice). The 2011 Notice proposed assessments of $75 in additional taxes plus $52 in penalties related primarily to transfer pricing adjustments for products manufactured in the Company's facilities in Puerto Rico and the Dominican Republic and sold to affiliated companies located in the United States. Eaton US has set its transfer prices for products sold between these affiliates at the same prices that Eaton US sells such products to third parties as required by two successive Advance Pricing Agreements (APAs) Eaton US entered into with the IRS that governed the 2005-2010 tax years. Eaton US has continued to apply the arms-length transfer pricing methodology for 2011 through the current reporting period. Immediately prior to the 2011 Notice being issued, the IRS sent a letter stating that it was retrospectively canceling the APAs. Eaton US contested the proposed assessments in United States Tax Court. The case involved both whether the APAs should be enforced and, if not, the appropriate transfer pricing methodology. On July 26, 2017, the United States Tax Court issued a ruling in which it agreed with Eaton US that the IRS must abide by the terms of the APAs for the tax years 2005-2006. The Tax Court’s ruling on the APAs did not have a material impact on Eaton’s consolidated financial statements.

In 2014, Eaton US received a Notice from the IRS for the 2007 through 2010 tax years (the 2014 Notice) proposing assessments of $190 in additional taxes plus $72 in penalties, net of agreed credits and deductions, which the Company has also contested in Tax Court. The proposed assessments pertain primarily to the same transfer pricing issues and APA for which the Tax Court has issued its ruling during 2017 as noted above. The Company believes that the Tax Court’s ruling for tax years 2005-2006 will also be applicable to the 2007-2010 years. Following the issuance of the Tax Court’s ruling, Eaton and the IRS recognized that the ruling on the enforceability of the APAs did not address a secondary issue regarding the transfer pricing for a certain royalty paid from 2006-2010. Eaton US reported a consistent royalty rate for 2006-2010. The IRS has agreed to the royalty rate as reported by Eaton US in 2006. Although the IRS has not proposed an alternative rate, it has not agreed to apply the same royalty rate in the 2007-2010 years.

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The 2014 Notice also includes a separate proposed assessment involving the recognition of income for several of Eaton US’s controlled foreign corporations. The Company believes that the proposed assessment is without merit and is contesting the matter in Tax Court. Eaton and the IRS have both moved for partial summary judgment on this issue. The Tax Court heard oral arguments on the motions in January 2018, following which the Court ordered further briefing, which was completed in March 2018. On February 25, 2019 the Tax Court granted the IRS’s motion for partial summary judgment and denied Eaton’s.  The Company intends to appeal the Tax Court’s decision to the United States Court of Appeals. The Company is analyzing the impact, if any, the Tax Court’s decision will have on its consolidated financial statements in 2019.

In 2018 the IRS completed its examination of the Eaton US tax years 2011 through 2013 and has proposed adjustments to certain transfer pricing tax positions, including adjustments similar to those proposed in the 2011 and 2014 Notices for products manufactured in the Company’s facilities in Puerto Rico and the Dominican Republic and sold to affiliated companies located in the United States. The IRS also proposed adjustments involving the recognition of income for several of Eaton US’s controlled foreign corporation, which is the same issue included in the 2014 Notice described above and subject to litigation in Tax Court. The Company intends to pursue its administrative appeals alternatives with respect to each of the IRS adjustments and believes that final resolution of the proposed adjustments will not have a material impact on its consolidated financial statements.

During 2010, the Company received a tax assessment, which included interest and penalties, in Brazil for the tax years 2005 through 2008 that relates to the amortization of certain goodwill generated from the acquisition of third-party businesses and corporate reorganizations. In 2018 the Company received an unfavorable result at the final tax administrative appeals level, resulting in an alleged tax deficiency of $32 plus $84 of interest and penalties (translated at the December 31, 2018 exchange rate). The Company plans to challenge the assessment in the judicial system, which is expected to take up to 10 years to resolve. During 2014, the Company received a tax assessment of $33 (translated at the December 31, 2018 exchange rate), plus interest and penalties, for the 2009 through 2012 tax years (primarily relating to the same issues concerning the 2005 through 2008 tax years), which the Company is also contesting and remains under review at the final tax administrative appeals level. The Company continues to believe that final resolution of both of the assessments will not have a material impact on its consolidated financial statements.

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Note 11. EATON SHAREHOLDERS' EQUITY

There are 750 million Eaton ordinary shares authorized ($0.01 par value per share), 423.6 million and 439.9 million of which were issued and outstanding at December 31, 2018 and 2017, respectively. Eaton's Memorandum and Articles of Association authorized 40 thousand deferred ordinary shares (€1.00 par value per share) and 10 thousand preferred A shares ($1.00 par value per share), all of which were issued and outstanding at December 31, 2018 and 2017, and 10 million serial preferred shares ($0.01 par value per share), none of which is outstanding at December 31, 2018 and 2017. At December 31, 2018, there were 12,846 holders of record of Eaton ordinary shares. Additionally, 18,972 current and former employees were shareholders through participation in the Eaton Savings Plan, Eaton Personal Investment Plan, or the Eaton Puerto Rico Retirement Savings Plan.

On October 22, 2013, Eaton's Board of Directors adopted a share repurchase program (the 2013 Program). Under the 2013 Program, the ordinary shares were expected to be repurchased over time, depending on market conditions, the market price of ordinary shares, capital levels, and other considerations. During 2016, 1.5 million ordinary shares were repurchased under the 2013 Program in the open market at a total cost of $82. On February 24, 2016, the Board of Directors approved a new share repurchase program for share repurchases up to $2,500 of ordinary shares (2016 Program). Under the 2016 Program, the ordinary shares were expected to be repurchased over time, depending on market conditions, the market price of ordinary shares, capital levels, and other considerations. During 2018, 2017 and 2016, 13.2 million, 11.5 million and 10.3 million shares, respectively, were purchased on the open market under the 2016 Program for a total cost of $1,002, $850 and $648, respectively. An additional 4.3 million shares were purchased on the open market in December 2018 outside of the 2016 Program for a total cost of $298.

Eaton has deferral plans that permit certain employees and directors to defer a portion of their compensation. A trust contains $8 and $11 of ordinary shares and marketable securities at December 31, 2018 and 2017, respectively, to fund a portion of these liabilities. The marketable securities were included in Other assets and the ordinary shares were included in Shareholders' equity at historical cost.

On February 27, 2019, Eaton's Board of Directors declared a quarterly dividend of $0.71 per ordinary share, an 8% increase over the dividend paid in the fourth quarter of 2018. The dividend is payable on March 22, 2019 to shareholders of record on March 9, 2019.

Comprehensive Income (Loss)

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

	2018						2017						2016
	Pre-tax			After-tax			Pre-tax			After-tax			Pre-tax			After-tax
Currency translation and related hedging instruments	$	(613	)	$	(609	)	$	800		$	807		$	(562	)	$	(570	)
Pensions and other postretirement benefits
Prior service credit (cost) arising during the year	(25		)	(20		)	(1		)	—			(2		)	(2		)
Net gain (loss) arising during the year	(358		)	(274		)	215			169			(247		)	(197		)
Currency translation	37			29			(67		)	(53		)	74			62
Other	—			5			—			(5		)	—			(2		)
Amortization of actuarial loss and prior service cost    reclassified to earnings	168			121			188			130			201			133
	(178		)	(139		)	335			241			26			(6		)
Cash flow hedges
Gain (loss) on derivatives designated as cash flow hedges	(8		)	(6		)	(24		)	(15		)	(21		)	(14		)
Changes in cash flow hedges reclassified to earnings	16			13			17			11			8			5
Cash flow hedges, net of reclassification adjustments	8			7			(7		)	(4		)	(13		)	(9		)
Other comprehensive income (loss) attributable to Eaton ordinary shareholders	$	(783	)	$	(741	)	$	1,128		$	1,044		$	(549	)	$	(585	)

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The changes in Accumulated other comprehensive loss follow:

	Currency translation and related hedging instruments			Pensions and other postretirement benefits			Cash flow hedges			Total
Balance at December 31, 2017	$	(2,255	)	$	(1,139	)	$	(10	)	$	(3,404	)
Other comprehensive income (loss) before     reclassifications	(609		)	(260		)	(6		)	(875		)
Amounts reclassified from Accumulated other    comprehensive loss (income)	—			121			13			134
Net current-period Other comprehensive    income (loss)	(609		)	(139		)	7			(741		)
Balance at December 31, 2018	$	(2,864	)	$	(1,278	)	$	(3	)	$	(4,145	)

The reclassifications out of Accumulated other comprehensive loss follow:

	December 31, 2018			Consolidated Statements of Income classification
Amortization of defined benefits pension and other    postretirement benefits items
Actuarial loss and prior service cost	$	(168	)	1
Tax benefit	47
Total, net of tax	(121		)
Gains and (losses) on cash flow hedges
Currency exchange contracts	(16		)	Cost of products sold
Tax benefit	3
Total, net of tax	(13		)
Total reclassifications for the period	$	(134	)

¹ These components of Accumulated other comprehensive loss are included in the computation of net periodic benefit cost. See Note 8 for additional information about defined benefits 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:

(Shares in millions)	2018		2017		2016
Net income attributable to Eaton ordinary shareholders	$	2,145	$	2,985	$	1,916
Weighted-average number of ordinary shares outstanding - diluted	436.9		447.0		456.5
Less dilutive effect of equity-based compensation	2.6		2.5		1.5
Weighted-average number of ordinary shares outstanding - basic	434.3		444.5		455.0
Net income per share attributable to Eaton ordinary shareholders
Diluted	$	4.91	$	6.68	$	4.20
Basic	4.93		6.71		4.21

In 2018, 2017, and 2016, 0.5 million, 0.4 million, and 1.7 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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Note 12. EQUITY-BASED COMPENSATION

Eaton recognizes equity-based compensation expense based on the grant date fair value of the award. Awards with service conditions or both service and market conditions are expensed over the period during which an employee is required to provide service in exchange for the award. Awards with both service and performance conditions are expensed over the period an employee is required to provide service based on the number of units for which achievement of the performance objective is probable. The Company estimates forfeitures as part of recording equity-based compensation expense.

Restricted Stock Units and Awards

Restricted stock units (RSUs) and restricted stock awards (RSAs) have been issued to certain employees and directors. Participants awarded RSUs in 2016 do not receive dividends; therefore, the fair value is determined by reducing the closing market price of the Company’s ordinary shares on the date of grant by the present value of the estimated dividends had they been paid. The fair value of RSUs awarded in 2017 and 2018, and RSAs are determined based on the closing market price of the Company’s ordinary shares at the date of grant. The RSUs entitle the holder to receive one ordinary share for each RSU upon vesting, generally over three years. RSAs are issued and outstanding at the time of grant, but remain subject to forfeiture until vested, generally over three or four years. A summary of the RSU and RSA activity for 2018 follows:

(Restricted stock units and awards in millions)	Number of restricted stock units and awards		Weighted-average fair value per unit and award
Non-vested at January 1	2.4		$	62.24
Granted	0.7		81.83
Vested	(0.9	)	63.44
Forfeited	(0.1	)	68.94
Non-vested at December 31	2.1		$	68.56

Information related to RSUs and RSAs follows:

	2018		2017		2016
Pretax expense for RSUs and RSAs	$	59	$	66	$	65
After-tax expense for RSUs and RSAs	46		43		42
Fair value of vested RSUs and RSAs	71		73		71

As of December 31, 2018, total compensation expense not yet recognized related to non-vested RSUs and RSAs was $72, and the weighted-average period in which the expense is expected to be recognized is 2.4 years. Excess tax benefit for RSUs and RSAs totaled $3 and $2 for 2018 and 2017, respectively. There was no excess tax benefit for RSUs and RSAs in 2016.

Performance Share Units

In February 2018, 2017 and 2016, the Compensation and Organization Committee of the Board of Directors approved the grant of performance share units (PSUs) to certain employees that vest based on the satisfaction of a three-year service period and total shareholder return relative to that of a group of peers. Awards earned at the end of the three-year vesting period range from 0% to 200% of the targeted number of PSUs granted based on the ranking of total shareholder return of the Company, assuming reinvestment of all dividends, relative to a defined peer group of companies. Equity-based compensation expense for these PSUs is recognized over the period during which an employee is required to provide service in exchange for the award. Upon vesting, dividends that have accumulated during the vesting period are paid on earned awards.

The Company uses a Monte Carlo simulation to estimate the fair value of PSUs with market conditions. The principal assumptions utilized in valuing these PSUs include the expected stock price volatility (based on the most recent 3-year period as of the grant date) and the risk-free interest rate (an estimate based on the yield of United States Treasury zero coupon bonds with a 3-year maturity as of the grant date). A summary of the assumptions used in determining fair value of these PSUs follows:

	2018			2017			2016
Expected volatility	22		%	24		%	24		%
Risk-free interest rate	2.38		%	1.46		%	0.88		%
Weighted-average fair value of PSUs granted	$	100.86		$	80.07		$	76.41

54

A summary of these PSUs that vested follows:

(Performance share units in millions)	2018
Percent payout	116	%
Shares vested	0.5

A summary of the 2018 activity for these PSUs follows:

(Performance share units in millions)	Number of performance share units		Weighted-average fair value per unit
Non-vested at January 1	0.8		$	77.97
Granted1	0.3		100.86
Adjusted for performance results achieved2	0.1		76.41
Vested	(0.5	)	76.41
Forfeited	(0.1	)	85.92
Non-vested at December 31	0.6		$	89.95

¹ Performance shares granted assuming the Company will perform at target relative to peers.

² Adjustments for the number of shares vested under the 2016 awards at the end of the three-year performance period ended December 31, 2018, being higher than the target number of shares.

In February 2016, performance share units were granted to certain employees that entitles the holder to receive one ordinary share for each PSU that vest based on the satisfaction of a three-year service period and the achievement of certain performance metrics over that same period. Upon vesting, PSU holders receive dividends that accumulate during the vesting period. The fair value of these PSUs is determined based on the closing market price of the Company's ordinary shares at the date of grant. Equity-based compensation expense is recognized over the period an employee is required to provide service based on the number of PSUs for which achievement of the performance objectives is probable. A summary of the 2018 activity for these PSUs follows:

(Performance share units in millions)	Number of performance share units	Weighted-average fair value per unit
Non-vested at January 1	0.1	$	56.55
Granted	—	—
Vested	—	—
Forfeited	—	—
Non-vested at December 31	0.1	$	56.55

Information related to PSUs follows:

	2018		2017		2016
Pretax expense for PSUs	$	28	$	22	$	13
After-tax expense for PSUs	22		13		8

As of December 31, 2018, total compensation expense not yet recognized related to non-vested PSUs was $30 and the weighted average period in which the expense is to be recognized is 1.8 years. There was no excess tax benefit for PSUs in 2018, 2017 and 2016.

Stock Options

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

55

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

	2018			2017			2016
Expected volatility	26		%	27		%	27		%
Expected option life in years	6.7			6.6			5.5
Expected dividend yield	3.0		%	2.8		%	2.5		%
Risk-free interest rate	2.6 to 2.9%			1.8 to 2.1%			1.2 to 1.5%
Weighted-average fair value of stock options granted	$	16.93		$	15.11		$	11.80

A summary of stock option activity follows:

(Options in millions)	Weighted-average exercise price per option		Options		Weighted-average remaining contractual life in years	Aggregate intrinsic value
Outstanding at January 1, 2018	$	62.43	4.6
Granted	81.76		0.6
Exercised	53.26		(0.6	)
Forfeited and canceled	—		—
Outstanding at December 31, 2018	$	65.96	4.6		6.2	$	27.4
Exercisable at December 31, 2018	$	63.39	3.2		5.2	$	22.4
Reserved for future grants at December 31, 2018			13.2

The aggregate intrinsic value in the table above represents the total excess of the $68.66 closing price of Eaton ordinary shares on the last trading day of 2018 over the exercise price of the stock option, multiplied by the related number of options outstanding and exercisable. The aggregate intrinsic value is not recognized for financial accounting purposes and the value changes based on the daily changes in the fair market value of the Company's ordinary shares.

Information related to stock options follows:

	2018		2017		2016
Pretax expense for stock options	$	11	$	11	$	14
After-tax expense for stock options	9		8		9
Proceeds from stock options exercised	29		66		74
Income tax benefit related to stock options exercised
Tax benefit classified in operating activities in the Consolidated    Statements of Cash Flows	3		13		5
Excess tax benefit classified in financing activities in the    Consolidated Statements of Cash Flows	—		—		1
Intrinsic value of stock options exercised	17		41		42
Total fair value of stock options vested	$	11	$	11	$	14
Stock options exercised, in millions of options	0.6		1.5		1.9

As of December 31, 2018, total compensation expense not yet recognized related to non-vested stock options was $10, and the weighted-average period in which the expense is expected to be recognized is 1.8 years.

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Note 13. FAIR VALUE MEASUREMENTS

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

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

	Total		Quoted prices in active markets for identical assets (Level 1)		Other observable inputs (Level 2)		Unobservable inputs (Level 3)
2018
Cash	$	283	$	283	$	—	$	—
Short-term investments	157		157		—		—
Net derivative contracts	14		—		14		—
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 $7,107 and fair value of $7,061 at December 31, 2018 compared to $7,745 and $8,048, respectively, at December 31, 2017. The fair value of Eaton's debt instruments was estimated using prevailing market interest rates on debt with similar creditworthiness, terms and maturities and is considered a Level 2 fair value measurement.

As discussed in Note 2, on July 31, 2017 Eaton sold a 50% interest in its heavy-duty and medium-duty commercial vehicle automated transmission business to Cummins, Inc. Eaton's remaining 50% interest was remeasured to a fair value of $600 on July 31, 2017 using a discounted cash flow model which is considered a Level 3 fair value measurement. The model includes estimates of future cash flows, future growth rates, terminal value amounts, and the applicable weighted-average cost of capital used to discount those estimated cash flows. Eaton accounts for its investment on the equity method of accounting.

Short-Term Investments

Eaton invests excess cash generated from operations in short-term marketable investments. A summary of the carrying value, which approximates the fair value due to the short-term maturities of these investments, follows:

	2018		2017
Time deposits and certificates of deposit with banks	$	111	$	435
Money market investments	46		99
Total short-term investments	$	157	$	534

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Note 14. DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES

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

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

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

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

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

The gain or loss from a derivative financial instrument designated as a hedge that is effective is classified in the same line of the Consolidated Statements of Income as the offsetting loss or gain on the hedged item. The change in fair value of a derivative financial instrument that is not effective as a hedge is immediately recognized in income. The cash flows resulting from these financial instruments are classified in operating activities on the 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. During 2018 and 2017, Eaton recognized gains of $1 and $2, respectively, associated with these commodity hedge contracts. 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 $88 at December 31, 2017 and the notes were repaid in 2018, and designated on a pre-tax basis was $623 and $652 at December 31, 2018 and 2017, respectively. See Note 7 for additional information about debt.

Interest Rate Risk

Eaton has entered into fixed-to-floating interest rate swaps to manage interest rate risk of certain long-term debt. These interest rate swaps are accounted for as fair value hedges of certain long-term debt. The maturity of the swap corresponds with the maturity of the debt instrument as noted in the table of long-term debt in Note 7. Eaton also entered into several forward starting floating-to-fixed interest rate swaps to manage interest rate risk on a future anticipated debt issuance.

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A summary of interest rate swaps outstanding at December 31, 2018, follows:

Fixed-to-Floating Interest Rate Swaps

Notional amount		Fixed interest rate received	Floating interest rate paid	Basis for contracted floating interest rate paid
$	300	6.95%	7.29%	3 month LIBOR + 5.07%
25		8.88%	6.07%	6 month LIBOR + 3.84%
150		3.88%	4.14%	1 month LIBOR + 2.12%
275		3.47%	3.75%	1 month LIBOR + 1.74%
100		8.10%	7.92%	1 month LIBOR + 5.90%
1,400		2.75%	2.57%	1 month LIBOR + 0.58%
200		3.68%	3.05%	1 month LIBOR + 1.07%
25		7.63%	4.73%	6 month LIBOR + 2.48%
50		7.65%	4.84%	6 month LIBOR + 2.57%
25		5.45%	2.55%	6 month LIBOR + 0.28%

Forward Starting Floating-to-Fixed Interest Rate Swaps

Notional amount		Floating interest rate to be received	Fixed interest rate to be paid	Basis for contracted floating interest rate received
$	50	—%	3.10%	3 month LIBOR + 0.00%
50		—%	3.06%	3 month LIBOR + 0.00%

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Derivative Financial Statement Impacts

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

	Notional amount		Other  current assets		Other noncurrent assets		Other current liabilities		Other noncurrent liabilities		Type of hedge	Term
December 31, 2018
Derivatives designated as hedges
Fixed-to-floating interest rate swaps	$	2,550	$	—	$	22	$	1	$	26	Fair value	3 months to 16 years
Forward starting floating-to-fixed interest rate swaps	100		—		—		—		3		Cash flow	34 years
Currency exchange contracts	951		19		2		11		8		Cash flow	1 to 36 months
Total			$	19	$	24	$	12	$	37
Derivatives not designated as hedges
Currency exchange contracts	$	3,886	$	40			$	20				1 to 12 months
Total			$	40			$	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 receivables, payables 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. For the year ended December 31, 2018, $110 of cash outflow resulting from the settlement of these derivatives has been classified in investing activities on the Consolidated Statement of Cash Flows. The net cash flow from the settlement of these derivatives has been presented in operating activities in prior periods and have not been restated as such amounts are not material.

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

	Gain (loss) recognized in other comprehensive (loss) income						Location of gain (loss) reclassified from Accumulated other comprehensive loss	Gain (loss) reclassified from Accumulated other comprehensive loss
	2018			2017				2018			2017
Derivatives designated as cash flow hedges
Forward starting floating-to-fixed interest rate swaps	$	(4	)	$	(15	)	Interest expense - net	$	—		$	—
Interest rate locks	—			(9		)	Interest expense - net	—			—
Currency exchange contracts	(4		)	—			Cost of products sold	(16		)	(17		)
Total	$	(8	)	$	(24	)		$	(16	)	$	(17	)

Amounts recognized in net income follow:

	2018			2017
Derivatives designated as fair value hedges
Fixed-to-floating interest rate swaps	$	(30	)	$	(33	)
Related long-term debt converted to floating interest    rates by interest rate swaps	30			33
	$	—		$	—

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

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Note 15. ACCOUNTS RECEIVABLE AND INVENTORY

Accounts Receivable

Eaton performs ongoing credit evaluation of its customers and maintains sufficient allowances for potential credit losses. The Company evaluates the collectability of its accounts receivable based on the length of time the receivable is past due and any anticipated future write-off based on historic experience. Accounts receivable balances are written off against an allowance for doubtful accounts after a final determination of uncollectability has been made. Accounts receivable are net of an allowance for doubtful accounts of $55 and $57 at December 31, 2018 and 2017.

Inventory

Inventory is carried at lower of cost or net realizable value using the first-in, first-out (FIFO) method. Cost components include raw materials, purchased components, direct labor, indirect labor, utilities, depreciation, inbound freight charges, purchasing and receiving costs, inspection costs, warehousing costs, and costs of the distribution network.

The components of inventory follow:

	2018		2017
Raw materials	$	1,077	$	953
Work-in-process	500		471
Finished goods	1,208		1,196
Total inventory	$	2,785	$	2,620

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Note 16. BUSINESS SEGMENT AND GEOGRAPHIC REGION INFORMATION

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

Electrical Products and Electrical Systems and Services

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

Hydraulics

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

Aerospace

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

Vehicle

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

eMobility

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 principle markets for the eMobility segment are original equipment manufacturers and aftermarket customers of passenger cars, commercial vehicles, and construction, agriculture, and mining equipment.

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Other Information

No single customer represented greater than 10% of net sales in 2018, 2017 or 2016, respectively.

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

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

Business Segment Information

	2018			2017			2016
Net sales
Electrical Products	$	7,124		$	6,917		$	6,703
Electrical Systems and Services	6,024			5,666			5,662
Hydraulics	2,756			2,468			2,222
Aerospace	1,896			1,744			1,753
Vehicle	3,489			3,326			3,141
eMobility	320			283			266
Total net sales	$	21,609		$	20,404		$	19,747
Segment operating profit
Electrical Products	$	1,311		$	1,233		$	1,186
Electrical Systems and Services	896			770			711
Hydraulics	370			288			198
Aerospace	398			332			335
Vehicle	611			541			471
eMobility	44			50			57
Total segment operating profit	3,630			3,214			2,958
Corporate
Amortization of intangible assets	(382		)	(388		)	(392		)
Interest expense - net	(271		)	(246		)	(233		)
Pension and other postretirement benefits expense	(1		)	(45		)	(60		)
Gain on sale of business	—			1,077			—
Arbitration decision expense	(275		)	—			—
Other corporate expense - net	(277		)	(244		)	(155		)
Income before income taxes	2,424			3,368			2,118
Income tax expense	278			382			199
Net income	2,146			2,986			1,919
Less net income for noncontrolling interests	(1		)	(1		)	(3		)
Net income attributable to Eaton ordinary shareholders	$	2,145		$	2,985		$	1,916

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

	2018		2017		2016
Electrical Products	$	—	$	4	$	3
Electrical Systems and Services	—		—		1
Total	$	—	$	4	$	4

There were no corporate acquisition integration charges in 2018, 2017 and 2016. See Note 3 for additional information about acquisition integration charges.

	2018		2017		2016
Identifiable assets
Electrical Products	$	2,451	$	2,446	$	2,254
Electrical Systems and Services	2,243		2,141		2,222
Hydraulics	1,473		1,345		1,188
Aerospace	935		938		830
Vehicle	2,289		2,367		1,534
eMobility	139		136		124
Total identifiable assets	9,530		9,373		8,152
Goodwill	13,328		13,568		13,201
Other intangible assets	4,846		5,265		5,514
Corporate	3,388		4,417		3,609
Total assets	$	31,092	$	32,623	$	30,476
Capital expenditures for property, plant and equipment
Electrical Products	$	135	$	130	$	128
Electrical Systems and Services	101		83		78
Hydraulics	106		96		92
Aerospace	38		37		28
Vehicle	143		141		142
eMobility	4		4		6
Total	527		491		474
Corporate	38		29		23
Total expenditures for property, plant and equipment	$	565	$	520	$	497
Depreciation of property, plant and equipment
Electrical Products	$	136	$	138	$	137
Electrical Systems and Services	85		83		82
Hydraulics	64		61		64
Aerospace	26		26		27
Vehicle	104		109		109
eMobility	5		5		4
Total	420		422		423
Corporate	53		54		63
Total depreciation of property, plant and equipment	$	473	$	476	$	486

65

Geographic Region Information

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

	2018		2017		2016
Net sales
United States	$	12,034	$	11,222	$	10,937
Canada	931		942		898
Latin America	1,442		1,485		1,448
Europe	4,553		4,394		4,228
Asia Pacific	2,649		2,361		2,236
Total	$	21,609	$	20,404	$	19,747
Long-lived assets
United States	$	1,898	$	1,872	$	1,924
Canada	20		20		19
Latin America	286		290		281
Europe	723		769		681
Asia Pacific	540		551		538
Total	$	3,467	$	3,502	$	3,443

66

Note 17. CONDENSED CONSOLIDATING FINANCIAL STATEMENTS

The Registered Senior Notes issued by Eaton Corporation are registered under the Securities Act of 1933. Eaton and certain other of Eaton's 100% owned direct and indirect subsidiaries (the Guarantors) fully and unconditionally guaranteed (subject, in the case of the Guarantors, other than Eaton, to customary release provisions as described below), on a joint and several basis, the 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 7 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, 2017 and 2016, the Company undertook certain steps to restructure ownership of various subsidiaries. The transactions were entirely among wholly-owned subsidiaries under the common control of Eaton. These restructurings have been reflected as of the beginning of the earliest period presented below.

CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME YEAR ENDED DECEMBER 31, 2018
	Eaton Corporation plc			Eaton Corporation			Guarantors			Other subsidiaries			Consolidating adjustments			Total
Net sales	$	—		$	7,138		$	7,131		$	12,649		$	(5,309	)	$	21,609
Cost of products sold	—			5,644			5,172			9,011			(5,316		)	14,511
Selling and administrative expense	10			1,438			769			1,331			—			3,548
Research and development expense	—			148			149			287			—			584
Interest expense (income) - net	—			273			15			(18		)	1			271
Arbitration decision expense	—			—			275			—			—			275
Other expense (income) - net	(29		)	37			40			(52		)	—			(4		)
Equity in loss (earnings) of    subsidiaries, net of tax	(2,302		)	(1,089		)	(3,555		)	(2,408		)	9,354			—
Intercompany expense (income) - net	176			(212		)	2,215			(2,179		)	—			—
Income (loss) before income taxes	2,145			899			2,051			6,677			(9,348		)	2,424
Income tax expense (benefit)	—			(39		)	(112		)	428			1			278
Net income (loss)	2,145			938			2,163			6,249			(9,349		)	2,146
Less net loss (income) for    noncontrolling interests	—			—			—			(1		)	—			(1		)
Net income (loss) attributable to    Eaton ordinary shareholders	$	2,145		$	938		$	2,163		$	6,248		$	(9,349	)	$	2,145
Other comprehensive income (loss)	(741		)	(110		)	(716		)	(1,575		)	2,401			(741		)
Total comprehensive income (loss) attributable to Eaton    ordinary shareholders	$	1,404		$	828		$	1,447		$	4,673		$	(6,948	)	$	1,404

67

CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME YEAR ENDED DECEMBER 31, 2017
	Eaton Corporation plc			Eaton Corporation			Guarantors			Other subsidiaries			Consolidating adjustments			Total
Net sales	$	—		$	6,659		$	6,803		$	12,358		$	(5,416	)	$	20,404
Cost of products sold	—			5,276			4,997			8,895			(5,412		)	13,756
Selling and administrative expense	11			1,374			781			1,360			—			3,526
Research and development expense	—			180			179			225			—			584
Interest expense (income) - net	—			245			20			(20		)	1			246
Gain on sale of business	—			560			—			517			—			1,077
Other expense (income) - net	79			38			(67		)	(49		)	—			1
Equity in loss (earnings) of    subsidiaries, net of tax	(3,644		)	(938		)	(4,673		)	(4,619		)	13,874			—
Intercompany expense (income) - net	569			(757		)	1,242			(1,054		)	—			—
Income (loss) before income taxes	2,985			1,801			4,324			8,137			(13,879		)	3,368
Income tax expense (benefit)	—			389			(116		)	111			(2		)	382
Net income (loss)	2,985			1,412			4,440			8,026			(13,877		)	2,986
Less net loss (income) for    noncontrolling interests	—			—			—			(3		)	2			(1		)
Net income (loss) attributable to    Eaton ordinary shareholders	$	2,985		$	1,412		$	4,440		$	8,023		$	(13,875	)	$	2,985
Other comprehensive income (loss)	1,044			80			993			2,281			(3,354		)	1,044
Total comprehensive income (loss) attributable to Eaton    ordinary shareholders	$	4,029		$	1,492		$	5,433		$	10,304		$	(17,229	)	$	4,029

68

CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME YEAR ENDED DECEMBER 31, 2016
	Eaton Corporation plc			Eaton Corporation			Guarantors			Other subsidiaries			Consolidating adjustments			Total
Net sales	$	—		$	6,447		$	6,603		$	11,706		$	(5,009	)	$	19,747
Cost of products sold	—			5,057			4,865			8,484			(5,010		)	13,396
Selling and administrative expense	9			1,372			771			1,312			—			3,464
Research and development expense	—			196			160			231			—			587
Interest expense (income) - net	—			230			18			(14		)	(1		)	233
Other expense (income) - net	(35		)	7			48			(71		)	—			(51		)
Equity in loss (earnings) of    subsidiaries, net of tax	(2,433		)	(556		)	(3,023		)	(2,656		)	8,668			—
Intercompany expense (income) - net	543			(334		)	1,278			(1,487		)	—			—
Income (loss) before income taxes	1,916			475			2,486			5,907			(8,666		)	2,118
Income tax expense (benefit)	—			24			42			132			1			199
Net income (loss)	1,916			451			2,444			5,775			(8,667		)	1,919
Less net loss (income) for    noncontrolling interests	—			—			—			(5		)	2			(3		)
Net income (loss) attributable to    Eaton ordinary shareholders	$	1,916		$	451		$	2,444		$	5,770		$	(8,665	)	$	1,916
Other comprehensive income (loss)	(585		)	81			(527		)	(1,341		)	1,787			(585		)
Total comprehensive income (loss) attributable to Eaton    ordinary shareholders	$	1,331		$	532		$	1,917		$	4,429		$	(6,878	)	$	1,331

69

CONDENSED CONSOLIDATING BALANCE SHEETS DECEMBER 31, 2018
	Eaton Corporation plc		Eaton Corporation		Guarantors		Other subsidiaries		Consolidating adjustments			Total
Assets
Current assets
Cash	$	1	$	21	$	—	$	261	$	—		$	283
Short-term investments	—		—		—		157		—			157
Accounts receivable - net	—		483		1,400		1,975		—			3,858
Intercompany accounts receivable	—		1,575		1,851		2,968		(6,394		)	—
Inventory	—		540		766		1,555		(76		)	2,785
Prepaid expenses and other    current assets	—		107		32		354		14			507
Total current assets	1		2,726		4,049		7,270		(6,456		)	7,590
Property, plant and equipment - net	—		843		678		1,946		—			3,467
Other noncurrent assets
Goodwill	—		1,330		6,705		5,293		—			13,328
Other intangible assets	—		128		3,054		1,664		—			4,846
Deferred income taxes	—		340		—		288		(335		)	293
Investment in subsidiaries	16,476		7,658		71,334		25,551		(121,019		)	—
Intercompany loans receivable	1,508		5,843		8,406		59,147		(74,904		)	—
Other assets	—		746		117		705		—			1,568
Total assets	$	17,985	$	19,614	$	94,343	$	101,864	$	(202,714	)	$	31,092
Liabilities and shareholders’    equity
Current liabilities
Short-term debt	$	—	$	388	$	—	$	26	$	—		$	414
Current portion of long-term debt	—		338		—		1		—			339
Accounts payable	—		496		416		1,218		—			2,130
Intercompany accounts payable	32		1,127		3,206		2,029		(6,394		)	—
Accrued compensation	—		135		71		251		—			457
Other current liabilities	30		525		259		1,002		(2		)	1,814
Total current liabilities	62		3,009		3,952		4,527		(6,396		)	5,154
Noncurrent liabilities
Long-term debt	—		5,814		945		7		2			6,768
Pension liabilities	—		383		130		791		—			1,304
Other postretirement benefits    liabilities	—		166		83		72		—			321
Deferred income taxes	—		1		508		175		(335		)	349
Intercompany loans payable	1,816		5,182		66,507		1,399		(74,904		)	—
Other noncurrent liabilities	—		389		291		374		—			1,054
Total noncurrent liabilities	1,816		11,935		68,464		2,818		(75,237		)	9,796
Shareholders’ equity
Eaton shareholders’ equity	16,107		4,670		21,927		94,484		(121,081		)	16,107
Noncontrolling interests	—		—		—		35		—			35
Total equity	16,107		4,670		21,927		94,519		(121,081		)	16,142
Total liabilities and equity	$	17,985	$	19,614	$	94,343	$	101,864	$	(202,714	)	$	31,092

70

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		2,864		5,117		2,715		(10,704		)	—
Inventory	—		473		737		1,493		(83		)	2,620
Prepaid expenses and other    current assets	—		229		145		277		28			679
Total current assets	8		4,231		7,393		7,464		(10,759		)	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		7,942		75,661		39,556		(138,204		)	—
Intercompany loans receivable	3,122		7,089		2,909		61,427		(74,547		)	—
Other assets	—		748		166		784		—			1,698
Total assets	$	18,175	$	22,679	$	96,748	$	118,855	$	(223,834	)	$	32,623
Liabilities and shareholders’    equity
Current liabilities
Short-term debt	$	—	$	—	$	—	$	6	$	—		$	6
Current portion of long-term debt	—		542		36		—		—			578
Accounts payable	—		533		328		1,305		—			2,166
Intercompany accounts payable	4		4,916		4,381		1,403		(10,704		)	—
Accrued compensation	—		128		65		260		—			453
Other current liabilities	1		566		317		989		(1		)	1,872
Total current liabilities	5		6,685		5,127		3,963		(10,705		)	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		1,137		(74,547		)	—
Other noncurrent liabilities	—		313		273		379		—			965
Total noncurrent liabilities	917		10,834		70,726		2,650		(74,869		)	10,258
Shareholders’ equity
Eaton shareholders’ equity	17,253		5,160		20,895		112,205		(138,260		)	17,253
Noncontrolling interests	—		—		—		37		—			37
Total equity	17,253		5,160		20,895		112,242		(138,260		)	17,290
Total liabilities and equity	$	18,175	$	22,679	$	96,748	$	118,855	$	(223,834	)	$	32,623

71

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS DECEMBER 31, 2018
	Eaton Corporation plc			Eaton Corporation			Guarantors			Other subsidiaries			Consolidating adjustments			Total
Net cash provided by (used in)    operating activities	$	(26	)	$	(92	)	$	175		$	2,696		$	(95	)	$	2,658
Investing activities
Capital expenditures for property,    plant and equipment	—			(97		)	(93		)	(375		)	—			(565		)
Sales (purchases) of short-term investments - net	—			—			—			355			—			355
Investments in affiliates	(4		)	(36		)	—			—			40			—
Loans to affiliates	—			(100		)	(85		)	(6,441		)	6,626			—
Repayments of loans from affiliates	—			647			1,044			4,455			(6,146		)	—
(Payments) receipts for settlement of currency exchange contracts not designated as hedges - net	—			11			—			(121		)	—			(110		)
Other - net	—			(78		)	23			(23		)	—			(78		)
Net cash provided by (used in)     investing activities	(4		)	347			889			(2,150		)	520			(398		)
Financing activities
Proceeds from borrowings	—			388			—			22			—			410
Payments on borrowings	—			(538		)	(35		)	(1		)	—			(574		)
Proceeds from borrowings from    affiliates	3,756			2,452			318			100			(6,626		)	—
Payments on borrowings from    affiliates	(1,334		)	(3,178		)	(709		)	(925		)	6,146			—
Capital contributions from affiliates	—			—			—			40			(40		)	—
Other intercompany financing    activities	—			476			(651		)	175			—			—
Cash dividends paid	(1,149		)	—			—			—			—			(1,149		)
Cash dividends paid to affiliates	—			—			—			(95		)	95			—
Exercise of employee stock options	29			—			—			—			—			29
Repurchase of shares	(1,271		)	—			—			—			—			(1,271		)
Employee taxes paid from shares    withheld	—			(16		)	(5		)	(3		)	—			(24		)
Other - net	—			(1		)	—			(1		)	—			(2		)
Net cash provided by (used in)    financing activities	31			(417		)	(1,082		)	(688		)	(425		)	(2,581		)
Effect of currency on cash	—			—			—			43			—			43
Total increase (decrease) in cash	1			(162		)	(18		)	(99		)	—			(278		)
Cash at the beginning of the period	—			183			18			360			—			561
Cash at the end of the period	$	1		$	21		$	—		$	261		$	—		$	283

72

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS DECEMBER 31, 2017
	Eaton Corporation plc			Eaton Corporation			Guarantors			Other subsidiaries			Consolidating adjustments			Total
Net cash provided by (used in)    operating activities	$	258		$	(434	)	$	(56	)	$	4,507		$	(1,609	)	$	2,666
Investing activities
Capital expenditures for property,    plant and equipment	—			(89		)	(113		)	(318		)	—			(520		)
Cash received from sales (paid for acquisitions) of affiliates	—			—			(92		)	92			—			—
Sales (purchases) of short-term investments - net	—			—			—			(298		)	—			(298		)
Investments in affiliates	(190		)	(108		)	—			(90		)	388			—
Return of investments in affiliates	—			—			90			—			(90		)	—
Loans to affiliates	—			(444		)	(415		)	(6,308		)	7,167			—
Repayments of loans from affiliates	—			303			384			3,479			(4,166		)	—
Proceeds from the sales    of businesses	—			338			—			269			—			607
Other - net	—			(45		)	9			30			—			(6		)
Net cash provided by (used in)     investing activities	(190		)	(45		)	(137		)	(3,144		)	3,299			(217		)
Financing activities
Proceeds from borrowings	—			1,000			—			—			—			1,000
Payments on borrowings	—			(1,250		)	(297		)	(7		)	—			(1,554		)
Proceeds from borrowings from    affiliates	2,605			3,130			991			441			(7,167		)	—
Payments on borrowings from    affiliates	(822		)	(2,904		)	(353		)	(87		)	4,166			—
Capital contributions from affiliates	—			—			90			298			(388		)	—
Return of capital to affiliates	—			—			—			(90		)	90			—
Other intercompany financing    activities	—			616			574			(1,190		)	—			—
Cash dividends paid	(1,068		)	—			—			—			—			(1,068		)
Cash dividends paid to affiliates	—			—			(800		)	(809		)	1,609			—
Exercise of employee stock options	66			—			—			—			—			66
Repurchase of shares	(850		)	—			—			—			—			(850		)
Employee taxes paid from shares    withheld	—			(14		)	(5		)	(3		)	—			(22		)
Other - net	—			(8		)	(1		)	(5		)	—			(14		)
Net cash provided by (used in)    financing activities	(69		)	570			199			(1,452		)	(1,690		)	(2,442		)
Effect of currency on cash	—			—			—			11			—			11
Total increase (decrease) in cash	(1		)	91			6			(78		)	—			18
Cash at the beginning of the period	1			92			12			438			—			543
Cash at the end of the period	$	—		$	183		$	18		$	360		$	—		$	561

73

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS DECEMBER 31, 2016
	Eaton Corporation plc			Eaton Corporation			Guarantors			Other subsidiaries			Consolidating adjustments			Total
Net cash provided by (used in)    operating activities	$	(253	)	$	(9	)	$	(209	)	$	3,041		$	—		$	2,570
Investing activities
Capital expenditures for property,    plant and equipment	—			(92		)	(118		)	(287		)	—			(497		)
Sales (purchases) of short-term    investments - net	—			—			2			(42		)	—			(40		)
Investments in affiliates	(1,250		)	(8		)	(120		)	(1,370		)	2,748			—
Return of investments in affiliates	—			—			47			—			(47		)	—
Loans to affiliates	—			(251		)	(1,013		)	(7,850		)	9,114			—
Repayments of loans from affiliates	—			1,293			335			5,616			(7,244		)	—
Other - net	—			(9		)	42			(25		)	—			8
Net cash provided by (used in)    investing activities	(1,250		)	933			(825		)	(3,958		)	4,571			(529		)
Financing activities
Proceeds from borrowings	—			21			610			—			—			631
Payments on borrowings	—			(408		)	(233		)	(12		)	—			(653		)
Proceeds from borrowings from    affiliates	3,843			4,045			1,120			106			(9,114		)	—
Payments on borrowings from    affiliates	(646		)	(4,712		)	(1,844		)	(42		)	7,244			—
Capital contribution from affiliates	—			—			1,370			1,378			(2,748		)	—
Return of capital to affiliates	—			—			—			(47		)	47			—
Other intercompany financing    activities	—			206			21			(227		)	—			—
Cash dividends paid	(1,037		)	—			—			—			—			(1,037		)
Exercise of employee stock options	74			—			—			—			—			74
Repurchase of shares	(730		)	—			—			—			—			(730		)
Employee taxes paid from shares    withheld	—			(12		)	(3		)	(3		)	—			(18		)
Other - net	—			1			(4		)	(2		)	—			(5		)
Net cash provided by (used in)    financing activities	1,504			(859		)	1,037			1,151			(4,571		)	(1,738		)
Effect of currency on cash	—			—			—			(28		)	—			(28		)
Total increase (decrease) in cash	1			65			3			206			—			275
Cash at the beginning of the period	—			27			9			232			—			268
Cash at the end of the period	$	1		$	92		$	12		$	438		$	—		$	543

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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 2018 net sales of $21.6 billion. The Company provides energy-efficient solutions that help its customers effectively manage electrical, hydraulic and mechanical power more reliably, safely and sustainably. Eaton has approximately 99,000 employees in 59 countries and sells products to customers in more than 175 countries.

Summary of Results of Operations

During 2018, the Company's results of operations delivered strong sales growth as major global end markets expanded.

As discussed in Note 9, certain Eaton subsidiaries acquired in the 2012 acquisition of Cooper Industries have been ordered to pay $293 by an arbitration panel. The panel’s award, issued on August 23, 2018, relate to claims brought by Pepsi-Cola Metropolitan Bottling Company, Inc. (“Pepsi”) in 2011. A Texas state court confirmed the arbitration award at the confirmation hearing, which was held on October 12, 2018. On November 2, 2018, the Company appealed. On November 28, 2018, the Company paid the full judgment plus accrued post-judgment interest to Pneumo Abex and preserved its rights, including to pursue the appeal, which is pending. The impact of the arbitration award was an after-tax expense of $206 in the third quarter 2018, reducing earnings per share by $0.48.

During 2017, the Company's results of operations returned to solid growth as global end markets expanded, particularly in the second half of 2017. During the year, the Company completed its multi-year restructuring program, reducing its cost structure and expanding operating margins.

On July 31, 2017, Eaton sold a 50% interest in its heavy-duty and medium-duty commercial vehicle automated transmission business for $600 in cash to Cummins, Inc. The Company recognized a pre-tax gain of $1,077, of which $533 related to the pre-tax gain from the $600 proceeds from the sale and $544 related to the Company’s remaining 50% investment in the joint venture being remeasured to fair value. The after-tax gain was $843. Eaton accounts for its investment on the equity method of accounting.

The tax rate for 2017 includes a tax benefit of $62 related to the United States Tax Cuts and Jobs Act (“TCJA”), which was signed into law on December 22, 2017. The tax benefit of $62 related to the TCJA is comprised of a tax benefit of $79 for adjusting deferred tax assets and liabilities, offset by a tax expense of $17 for the taxation of unremitted earnings of non-U.S. subsidiaries owned directly or indirectly by U.S. subsidiaries of Eaton.

During 2016, the Company's results of operations were impacted by a decline in several of the Company's end markets. Further, the results of operations were negatively impacted by the strengthening in the value of the U.S. dollar. Despite the declining market conditions and unfavorable impact of currency translation, the Company generated solid operating margins and diluted net income per share.

Additional information related to the sale of a business, restructuring activities, and the arbitration decision expense, is presented in Note 2, Note 5, and Note 9, respectively, of the Notes to the Consolidated Financial Statements.

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

	2018		2017		2016
Net sales	$	21,609	$	20,404	$	19,747
Net income attributable to Eaton ordinary shareholders	2,145		2,985		1,916
Net income per share attributable to Eaton ordinary shareholders - diluted	$	4.91	$	6.68	$	4.20

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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 and 2016, and Oxalis Group Ltd. in 2016. 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 3 to the Consolidated Financial Statements.

Consolidated Financial Results

	2018			Change from 2017		2017			Change from 2016		2016
Net sales	$	21,609		6	%	$	20,404		3	%	$	19,747
Gross profit	7,098			7	%	6,648			5	%	6,351
Percent of net sales	32.8		%			32.6		%			32.2		%
Income before income taxes	2,424			(28	)%	3,368			59	%	2,118
Net income	2,146			(28	)%	2,986			56	%	1,919
Less net income for noncontrolling interests	(1		)			(1		)			(3		)
Net income attributable to Eaton ordinary shareholders	2,145			(28	)%	2,985			56	%	1,916
Excluding acquisition integration charges,    after-tax (Note 3)	—					2					3
Adjusted earnings	$	2,145		(28	)%	$	2,987		56	%	$	1,919
Net income per share attributable to Eaton ordinary shareholders - diluted	$	4.91		(26	)%	$	6.68		59	%	$	4.20
Excluding per share impact of acquisition integration charges, after-tax (Note 3)	—					—					0.01
Adjusted earnings per ordinary share	$	4.91		(26	)%	$	6.68		59	%	$	4.21

Net Sales

Net sales in 2018 increased by 6% compared to 2017 due to an increase of 6% in organic sales. The increase in organic sales in 2018 was primarily due to higher sales volumes in all business segments. Net sales in 2017 increased by 3% compared to 2016 due to an increase of 3% in organic sales. The increase in organic sales in 2017 was primarily due to higher sales volumes in the Electrical Products, Hydraulics, and Vehicle business segments.

Gross Profit

Gross profit margin increased from 32.6% in 2017 to 32.8% in 2018. The increase in gross profit margin in 2018 was primarily due to higher sales volumes, savings from restructuring actions, and lower restructuring charges, partially offset by commodity inflation and increased freight costs. Gross profit increased from 32.2% in 2016 to 32.6% in 2017. The increase in gross profit margin in 2017 was primarily due to higher sales volumes, savings from restructuring actions, and lower restructuring charges, partially offset by commodity inflation.

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Income Taxes

During 2018, income tax expense of $278 was recognized (an effective tax rate of 11.5%) compared to income tax expense of $382 in 2017 (an effective tax rate of 11.3%) and income tax expense of $199 in 2016 (an effective tax rate of 9.4%). The 2018 effective tax rate includes a tax benefit of $69 on the arbitration decision expense discussed in Note 9. The 2017 effective tax rate includes tax expense of $234 on the gain related to the sale of business discussed in Note 2 and a tax benefit of $62 related to the U.S. Tax Cuts and Jobs Act (TCJA). Excluding the one-time impacts of the 2018 arbitration decision, the 2017 sale of business, and the 2017 TCJA, the effective tax rate for 2018 was 12.8% compared to 9.2% for 2017. The increase from 9.2% for 2017 compared to 12.8% for 2018 was due to greater levels of income in higher tax jurisdictions and an increase in tax contingencies offset by net decreases of related valuation allowances. The decrease from 9.4% for the full year 2016 compared to 9.2% for the full year 2017 was due to the resolution of tax contingencies in various tax jurisdictions and the excess tax benefits recognized for employee share-based payments pursuant to the adoption of Accounting Standards Update 2016-09, Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting in 2017.

Net Income

Net income attributable to Eaton ordinary shareholders of $2,145 in 2018 decreased 28% compared to $2,985 in 2017. Net income in 2018 included after-tax expense of $206 from the arbitration decision discussed in Note 9, and in 2017 included $843 from the after-tax gain on the sale of the business discussed in Note 2 and $62 of income from the new U.S. tax bill discussed in Note 10. Excluding these items, the increase in 2018 was primarily due to higher sales volumes, savings from restructuring actions, and lower restructuring charges, partially offset by commodity inflation and increased freight costs. Net income attributable to Eaton ordinary shareholders of $2,985 in 2017 increased 56% compared to $1,916 in 2016. Net income in 2017 included $843 from the after-tax gain on the sale of the business and $62 of income from the new U.S. tax bill. Excluding these items, the increase in 2017 was primarily due to higher sales volumes, savings from restructuring actions, and lower restructuring charges, partially offset by commodity inflation.

Net income per ordinary share decreased to $4.91 in 2018 compared to $6.68 in 2017, and increased to $6.68 in 2017 compared to $4.20 in 2016. Net income per ordinary share in 2018 included an unfavorable $0.48 from the arbitration decision expense discussed in Note 9. Net income per ordinary share in 2017 included $1.89 from the gain on the sale of business discussed in Note 2 and $0.14 income from the 2017 U.S. Tax Cuts and Jobs Act discussed in Note 10. Excluding these items, Net income per ordinary share increased in 2018 and 2017 due to higher Net income attributable to Eaton ordinary shareholders and the Company's share repurchases over the past year.

Adjusted Earnings

There were no acquisition integration charges in 2018, $2 in 2017, and $3 in 2016 after-tax, which resulted in the same percent change for both Net income attributable to Eaton ordinary shareholders and Adjusted earnings for the respective periods.

There was no impact of excluding the per share impact of acquisition integration charges from Net income attributable to Eaton ordinary shareholders to arrive at Adjusted earnings per ordinary share for 2018 and 2017, and an increase of $0.01 for 2016.

Business Segment Results of Operations

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

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Electrical Products

	2018			Change from 2017		2017			Change from 2016		2016
Net sales	$	7,124		3	%	$	6,917		3	%	$	6,703
Operating profit	$	1,311		6	%	$	1,233		4	%	$	1,186
Operating margin	18.4		%			17.8		%			17.7		%
Acquisition integration charges	$	—				$	4				$	3
Before acquisition integration charges
Operating profit	$	1,311		6	%	$	1,237		4	%	$	1,189
Operating margin	18.4		%			17.9		%			17.7		%

Net sales increased 3% in 2018 compared to 2017 due to an increase of 3% in organic sales. Organic sales grew in 2018 in North America and Europe, primarily driven by growth in products going into commercial, residential and industrial applications, partially offset by weakness in North American lighting sales. Net sales increased 3% in 2017 compared to 2016 due to an increase of 3% in organic sales. Organic sales growth in 2017 was driven by growth in North America and Europe.

Operating margin increased from 17.8% in 2017 to 18.4% in 2018. The increase in operating margin in 2018 was primarily due to higher sales volumes, lower restructuring costs, and savings from restructuring actions, partially offset by commodity inflation and increased freight costs. Operating margin increased from 17.7% in 2016 to 17.8% in 2017. The increase in operating margin in 2017 was primarily due to higher sales volumes, savings from restructuring actions, and lower restructuring charges, partially offset by commodity inflation and the impact from natural disasters in 2017.

Operating margin before acquisition integration charges increased from 17.9% in 2017 to 18.4% in 2018. The increase in operating margin before acquisition integration charges in 2018 was primarily due to an increase in operating margin, partially offset by lower acquisition integration charges. Operating margin before acquisition integration charges increased from 17.7% in 2016 to 17.9% in 2017. The increase in operating margin before acquisition integration charges in 2017 was primarily due to an increase in operating margin and higher acquisition integration charges.

Electrical Systems and Services

	2018			Change from 2017		2017			Change from 2016		2016
Net sales	$	6,024		6	%	$	5,666		—	%	$	5,662
Operating profit	$	896		16	%	$	770		8	%	$	711
Operating margin	14.9		%			13.6		%			12.6		%
Acquisition integration charges	$	—				$	—				$	1
Before acquisition integration charges
Operating profit	$	896		16	%	$	770		8	%	$	712
Operating margin	14.9		%			13.6		%			12.6		%

Net sales increased 6% in 2018 compared to 2017 due to an increase of 7% in organic sales, partially offset by a decrease of 1% from the sale of a stake in a joint venture in the fourth quarter of 2017. The organic sales increase in 2018 was primarily due to strength in large industrial projects and commercial construction markets, data centers, and oil and gas markets. Net sales were broadly flat in 2017 compared to 2016.

Operating margin increased from 13.6% in 2017 to 14.9% in 2018. Operating margin increased in 2018 primarily due to higher sales volumes, savings from restructuring actions, and lower restructuring costs, partially offset by commodity inflation, unfavorable product mix, and increased freight costs. Operating margin increased from 12.6% in 2016 to 13.6% in 2017. Operating margin increased in 2017 primarily due to savings from restructuring actions and lower restructuring charges, partially offset by commodity inflation.

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Operating margin before acquisition integration charges increased from 12.6% in 2016 to 13.6% in 2017. The increase in operating margin before acquisition integration charges was primarily due to an increase in operating margin.

Hydraulics

	2018			Change from 2017		2017			Change from 2016		2016
Net sales	$	2,756		12	%	$	2,468		11	%	$	2,222
Operating profit	$	370		28	%	$	288		45	%	$	198
Operating margin	13.4		%			11.7		%			8.9		%

Net sales in 2018 increased 12% compared to 2017 due to an increase in organic sales of 11% and an increase of 1% from the impact of positive currency translation. The increase in organic sales in 2018 was due to strength in global mobile equipment markets. Net sales in 2017 increased 11% compared to 2016 due to an increase in organic sales of 12% and a decrease of 1% from the impact of negative currency translation. The increase in organic sales in 2017 was due to strength in global mobile equipment markets.

Operating margin increased from 11.7% in 2017 to 13.4% in 2018. The increase in operating margin in 2018 was primarily due to higher sales volumes, lower restructuring costs, and savings from restructuring actions, partially offset by commodity inflation, unfavorable product mix and increased freight costs. Operating margin increased from 8.9% in 2016 to 11.7% in 2017. The increase in operating margin in 2017 was primarily due to higher sales volumes, lower restructuring charges, and savings from restructuring actions, partially offset by commodity inflation.

Aerospace

	2018			Change from 2017		2017			Change from 2016		2016
Net sales	$	1,896		9	%	$	1,744		—	%	$	1,753
Operating profit	$	398		20	%	$	332		(1	)%	$	335
Operating margin	21.0		%			19.0		%			19.1		%

Net sales in 2018 increased 9% compared to 2017 due to an increase in organic sales of 9%. The increase in organic sales during 2018 was primarily due to higher sales in all major commercial and military end markets. Net sales were broadly flat in 2017 compared to 2016.

Operating margin increased from 19.0% in 2017 to 21.0% in 2018. The increase was primarily due to higher sales volume and favorable product mix. Operating margin decreased from 19.1% in 2016 to 19.0% in 2017. The decrease was primarily due to higher program development spending, partially offset by savings from restructuring actions.

Vehicle

	2018			Change from 2017		2017			Change from 2016		2016
Net sales	$	3,489		5	%	$	3,326		6	%	$	3,141
Operating profit	$	611		13	%	$	541		15	%	$	471
Operating margin	17.5		%			16.3		%			15.0		%

Net sales increased 5% in 2018 compared to 2017 due to an increase in organic sales of 7%, partially offset by a decrease of 2% from the sale of the business discussed in Note 2. The increase in organic sales in 2018 was primarily driven by growth in the Americas and Asia Pacific regions, with particular strength in the North American Class 8 truck market, partially offset by weakness in light vehicle markets in the European region. Net sales increased 6% in 2017 compared to 2016 due to an increase in organic sales of 5% and an increase of 2% from the impact of positive currency translation, partially offset by a decrease of 1% from the sale of the business discussed in Note 2. The increase in organic sales in 2017 was primarily due to growth in North America.

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Operating margin increased from 16.3% in 2017 to 17.5% in 2018. The increase in operating margin in 2018 was primarily due to higher sales volumes, partially offset by unfavorable product mix, commodity inflation and increased freight costs. Operating margin increased from 15.0% in 2016 to 16.3% in 2017. The increase in operating margin in 2017 was primarily due to higher sales volumes, lower restructuring costs, and savings from restructuring actions, partially offset by commodity inflation and unfavorable product mix.

eMobility

	2018			Change from 2017		2017			Change from 2016		2016
Net sales	$	320		13	%	$	283		6	%	$	266
Operating profit	$	44		(12	)%	$	50		(12	)%	$	57
Operating margin	13.8		%			17.7		%			21.4		%

Net sales increased 13% in 2018 compared to 2017 due to an increase in organic sales of 12% and an increase of 1% from the impact of positive currency translation. The increase in organic sales in 2018 was primarily due to strength in North America and Europe. Net sales increased 6% in 2017 compared to 2016 primarily due to strength in North America.

Operating margin decreased from 21.4% in 2016 to 17.7% in 2017 to 13.8% in 2018. The decrease in operating margin in 2018 and 2017 was primarily due to increased research and development costs.

Corporate Expense (Income)

	2018		Change from 2017		2017			Change from 2016		2016
Amortization of intangible assets	$	382	(2	)%	$	388		(1	)%	$	392
Interest expense - net	271		10	%	246			6	%	233
Pension and other postretirement benefits expense	1		(98	)%	45			(25	)%	60
Gain on sale of a business	—		NM		(1,077		)	NM		—
Arbitration decision expense	275		NM		—			NM		—
Other corporate expense - net	277		14	%	244			57	%	155
Total corporate expense (income)	$	1,206	(883	)%	$	(154	)	(118	)%	$	840

Corporate results were expense of $1,206 in 2018 compared to income of $154 in 2017. The change in Total corporate expense (income) in 2018 was primarily due to the 2018 arbitration decision discussed in Note 9 and the 2017 gain on the sale of the business discussed in Note 2. Corporate results were income of $154 in 2017 compared to expense of $840 in 2016. The change in Total corporate expense (income) in 2017 was primarily due to the gain on the sale of the business discussed in Note 2, partially offset by an increase in other corporate 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. The Company maintains long-term revolving credit facilities totaling $2,000, consisting of a $500three-year revolving credit facility that will expire November 17, 2020, a $750five-year revolving credit facility that will expire October 14, 2021, and a $750five-year revolving credit facility that will expire November 17, 2022. The revolving credit facilities are used to support commercial paper borrowings and are fully and unconditionally guaranteed by Eaton and certain of its direct and indirect subsidiaries on an unsubordinated, unsecured basis. There were no borrowings outstanding under Eaton's revolving credit facilities at December 31, 2018 or 2017. The Company had available lines of credit of $1,079 from various banks primarily for the issuance of letters of credit, of which there was $265 outstanding at December 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.

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On September 15, 2017, a subsidiary of Eaton issued senior notes (the 2017 Senior Notes) with a face amount of $1,000. The 2017 Senior Notes are comprised of two tranches of $700 and $300 which mature in 2027 and 2047, respectively, with interest payable semi-annually at a respective rate of 3.1% and 3.9%. The issuer received proceeds totaling $993 from the issuance, net of financing costs.

For additional information on financing transactions and debt, see Note 7 to the Consolidated Financial Statements.

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

Sources and Uses of Cash

Operating Cash Flow

Net cash provided by operating activities was $2,658 in 2018, a decrease of $8 compared to $2,666 in 2017. The decrease was driven by a $297 payment made during 2018 for the arbitration decision discussed in Note 9, offset by lower pension contributions to Eaton's U.S. qualified pension plans in 2018. Other-net includes the impact of foreign currency gains and losses related to the remeasurement of intercompany balance sheet exposures, which have no impact on Operating cash flow.

Net cash provided by operating activities was $2,666 in 2017, an increase of $96 compared to $2,570 in 2016. The increase was driven by higher net income, and lower working capital balances compared to 2016, partially offset by higher pension contributions, including $350 of voluntary contributions to Eaton's U.S. qualified pension plans.

Investing Cash Flow

Net cash used in investing activities was $398 in 2018, an increase in the use of cash of $181 compared to $217 in 2017. The increase in the use of cash was primarily driven by proceeds from the sale of a business as part of the formation of the Eaton Cummins joint venture in 2017 discussed in Note 2 and $110 in payments for the settlement of currency exchange contracts not designated as hedges discussed in Note 14, partially offset by net sales of short-term investments of $355 in 2018 compared to net purchases of $298 in 2017. Capital expenditures were $565 in 2018 compared to $520 in 2017. Eaton expects approximately $600 in capital expenditures in 2019.

Net cash used in investing activities was $217 in 2017, a decrease in the use of cash of $312 compared to $529 in 2016. The decrease in 2017 was primarily driven by proceeds of $600 from the sale of the business as part of the formation of the Eaton Cummins joint venture in 2017, partially offset by purchases of short-term investments of $298 in 2017 compared to $40 in 2016. Capital expenditures were $520 in 2017 compared to $497 in 2016.

Financing Cash Flow

Net cash used in financing activities was $2,581 in 2018, an increase in the use of cash of $139 compared to $2,442 in 2017. The increase in the use of cash was primarily due to lower proceeds from borrowings of $410 in 2018 compared to $1,000 in 2017, higher share repurchases of $1,271 in 2018 compared to $850 in 2017, and higher dividends paid of $1,149 in 2018 compared to $1,068 in 2017, partially offset by lower payments on borrowings of $574 in 2018 compared to $1,554 in 2017.

Net cash used in financing activities was $2,442 in 2017, an increase in the use of cash of $704 compared to $1,738 in 2016. The increase in the use of cash was primarily due to higher payments on borrowings of $1,554 in 2017 compared to $653 in 2016 and higher share repurchases of $850 in 2017 compared to $730 in 2016, partially offset by higher proceeds from borrowings of $1,000 in 2017 compared to $631 in 2016.

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Credit Ratings

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

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

Defined Benefits Plans

Pension Plans

During 2018, the fair value of plan assets in the Company’s employee pension plans decreased $684 to $4,628 at December 31, 2018. The decrease in plan assets was primarily due to lower than expected return on plan assets and the impact of negative currency translation. At December 31, 2018, the net unfunded position of $1,290 in pension liabilities consisted of $400 in the U.S. qualified pension plan, $865 in plans that have no minimum funding requirements, and $83 in all other plans that require minimum funding, partially offset by $58 in plans that are overfunded.

Funding requirements are a major consideration in making contributions to Eaton’s pension plans. With respect to the Company’s pension plans worldwide, the Company intends to contribute annually not less than the minimum required by applicable law and regulations. In 2018, $126 was contributed to the pension plans. The Company anticipates making $116 of contributions to certain pension plans during 2019. The funded status of the Company’s pension plans at the end of 2019, and future contributions, will depend primarily on the actual return on assets during the year and the discount rate used to calculate certain benefits at the end of the year.

Off-Balance Sheet Arrangements

Eaton does not have off-balance sheet arrangements or financings with unconsolidated entities or other persons. In the ordinary course of business, the Company leases certain real properties and equipment, as described in Note 9 to the Consolidated Financial Statements.

CRITICAL ACCOUNTING POLICIES

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

Revenue Recognition

Sales 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.

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.

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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 4 for additional information.

Impairment of Goodwill and Other Long-Lived Assets

Goodwill

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

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

The annual goodwill impairment test was performed using a qualitative analysis in 2018 and 2017 and a quantitative analysis in 2016. A qualitative analysis is performed by assessing certain trends and factors that require significant judgment, including projected market outlook and growth rates, forecasted and actual sales and operating profit margins, discount rates, industry data, and other relevant qualitative factors. These trends and factors are compared to, and based on, the assumptions used in the most recent quantitative analysis performed for each reporting unit. The results of the qualitative analyses did not indicate a need to perform quantitative analysis.

Goodwill impairment testing was also performed using a quantitative analysis for the Electrical Products, Vehicle and eMobility segments in the first quarter of 2018 due to a reorganization of the Company's businesses resulting in the creation of the eMobility segment. The Company used the relative fair value method to reallocate goodwill among these reporting units.

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

Based on these analyses performed in 2018 and 2017, the fair value of Eaton's reporting units continue to substantially exceed their respective carrying amounts and thus, no impairment exists.

Indefinite Life Intangible Assets

Indefinite life intangible assets consist of certain trademarks. They are evaluated annually for impairment as of July 1 using either a quantitative or qualitative analysis to determine whether their fair values exceed their respective carrying amounts. Indefinite life intangible asset impairment testing for 2018 and 2017 was performed using a quantitative analysis. Determining the fair value of these assets requires significant judgment and the Company uses a royalty relief methodology similar to that employed when the associated assets were acquired, but using updated estimates of future sales, cash flows and profitability.

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

For 2018 and 2017, the fair value of indefinite lived intangible assets exceeded the respective carrying value.

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Other Long-Lived Assets

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

For additional information about goodwill and other intangible assets, see Note 6 to the Consolidated Financial Statements.

Recoverability of Deferred Income Tax Assets

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

Management evaluates the realizability of deferred income tax assets for each jurisdiction in which it operates. If the Company experiences cumulative pretax income in a particular jurisdiction in a three-year period including the current and prior two years, management normally concludes that the deferred income tax assets will more likely than not be realizable and no valuation allowance is recognized, unless known or planned operating developments, or changes in tax laws, would lead management to conclude otherwise. However, if the Company experiences cumulative pretax losses in a particular jurisdiction in a three-year period including the current and prior two years, management then considers a series of factors in the determination of whether the deferred income tax assets can be realized. These factors include historical operating results, known or planned operating developments, the period of time over which certain temporary differences will reverse, consideration of the utilization of certain deferred income tax liabilities, tax law carryback capability in a particular country, prudent and feasible tax planning strategies, changes in tax laws, and estimates of future earnings and taxable income using the same assumptions as the Company’s goodwill and other impairment testing. After evaluation of these factors, if the deferred income tax assets are expected to be realized within the tax carryforward period allowed for that specific country, management would conclude that no valuation allowance would be required. To the extent that the deferred income tax assets exceed the amount that is expected to be realized within the tax carryforward period for a particular jurisdiction, management would establish a valuation allowance. For additional information about income taxes, see Note 10 to the Consolidated Financial Statements.

Pension and Other Postretirement Benefits Plans

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

The discount rate for United States plans was determined by discounting the expected future benefit payments using a theoretical zero-coupon spot yield curve derived from a universe of high-quality bonds as of the measurement date and solving for the single rate that generated the same benefit obligation. Only corporate bonds with a rating of Aa or higher by either Moody’s or Standard & Poor's were included. Callable bonds that are not make-whole bonds and certain other non-comparable bonds were eliminated. Finally, a subset of bonds was selected by grouping the universe of bonds by duration and retaining 50% of the bonds that had the highest yields.

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

To estimate the service and interest cost components of net periodic benefit cost for the vast majority of its defined benefits pension and other postretirement benefits plans, the Company used a spot rate approach by applying the specific spot rates along the yield curve used to measure the benefit obligation at the beginning of the period to the relevant projected cash flows.

84

Key assumptions used to calculate pension and other postretirement benefits expense are adjusted at each year-end. A 1-percentage point change in the assumed rate of return on pension plan assets is estimated to have approximately a $50 effect on pension expense. Likewise, a 1-percentage point change in the discount rate is estimated to have approximately a $62 effect on pension expense. A 1-percentage point change in the assumed rate of return on other postretirement benefits assets is estimated to have approximately a $1 effect on other postretirement benefits expense. A 1-percentage point change in the discount rate is estimated to have approximately a $2 effect on expense for other postretirement benefits plans.

Additional information related to changes in key assumptions used to recognize expense for other postretirement benefits plans is found in Note 8 to the Consolidated Financial Statements.

Environmental Contingencies

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

A number of factors affect the cost of environmental remediation, including the number of parties involved at a particular site, the determination of the extent of contamination, the length of time the remediation may require, the complexity of environmental regulations, and the continuing advancement of remediation technology. Taking these factors into account, Eaton has estimated the costs of remediation, which will be paid over a period of years. The Company accrues an amount on an undiscounted basis, consistent with the estimates of these costs, when it is probable that a liability has been incurred. At December 31, 2018 and 2017, $116 and $120, respectively, was accrued for these costs.

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

MARKET RISK DISCLOSURE

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

Eaton uses derivative instruments to manage exposure to volatility in raw material costs, currency, and interest rates on certain debt instruments. Derivative financial instruments used by the Company are straightforward and non-leveraged. The counterparties to these instruments are financial institutions with strong credit ratings. Eaton maintains control over the size of positions entered into with any one counterparty and regularly monitors the credit rating of these institutions. See Note 14 to the Consolidated Financial Statements for additional information about hedges and derivative financial instruments.

Eaton’s ability to access the commercial paper market, and the related cost of these borrowings, is based on the strength of its credit rating and overall market conditions. The Company has not experienced any material limitations in its ability to access these sources of liquidity. At December 31, 2018, Eaton had $2,000 of long-term revolving credit facilities with banks in support of its commercial paper program. It has no borrowings outstanding under these credit facilities.

Interest rate risk can be measured by calculating the short-term earnings impact that would result from adverse changes in interest rates. This exposure results from short-term debt, which includes commercial paper at a floating interest rate, long-term debt that has been swapped to floating rates, and money market investments that have not been swapped to fixed rates. Based upon the balances of investments and floating rate debt at year end 2018, a 100 basis-point increase in short-term interest rates would have increased the Company’s net, pretax interest expense by $24.

Eaton also measures interest rate risk by estimating the net amount by which the fair value of the Company’s financial liabilities would change as a result of movements in interest rates. Based on Eaton’s best estimate for a hypothetical, 100 basis point increase in interest rates at December 31, 2018, the market value of the Company’s debt and interest rate swap portfolio, in aggregate, would increase by $463.

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

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CONTRACTUAL OBLIGATIONS

A summary of contractual obligations as of December 31, 2018 follows:

	2019		2020 to 2021		2022 to 2023			Thereafter			Total
Long-term debt, including current portion(1)	$	339	$	543	$	2,002		$	4,217		$	7,101
Interest expense related to long-term debt	255		483		391			1,795			2,924
Increase (reduction) of interest expense from interest rate swap agreements related to long-term debt	3		1		(8		)	(37		)	(41		)
Operating leases	165		239		128			110			642
Purchase obligations	993		117		33			—			1,143
Other obligations	144		8		9			23			184
Total	$	1,899	$	1,391	$	2,555		$	6,108		$	11,953
(1) Long-term debt excludes deferred gains and losses on derivatives related to debt, adjustments to fair market value, and premiums and discounts on long-term debentures.

Interest expense related to long-term debt is based on the fixed interest rate, or other applicable interest rate, related to the debt instrument. The increase (reduction) of interest expense due to interest rate swap agreements related to long-term debt is based on the difference in the fixed interest rate the Company receives from the swap, compared to the floating interest rate the Company pays on the swap. Purchase obligations are entered into with various vendors in the normal course of business. These amounts include commitments for purchases of raw materials, outstanding non-cancelable purchase orders, releases under blanket purchase orders, and commitments under ongoing service arrangements. Other obligations principally include $116 of anticipated contributions to pension plans in 2019, $21 of other postretirement benefits payments expected to be paid in 2019, and $44 of deferred compensation earned under various plans for which the participants have elected to receive disbursement at a later date. The table above does not include all other future expected pension and other postretirement benefits payments. Information related to the amounts of these future payments is described in Note 8 to the Consolidated Financial Statements. The table above also excludes the liability for unrecognized income tax benefits, since the Company cannot predict with reasonable certainty the timing of cash settlements with the respective taxing authorities. At December 31, 2018, the gross liability for unrecognized income tax benefits totaled $913 and interest and penalties were $74.

FORWARD-LOOKING STATEMENTS

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

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QUARTERLY DATA (unaudited)

	Quarter ended in 2018												Quarter ended in 2017
(In millions except for per share data)	Dec. 31			Sept. 30			June 30			Mar. 31			Dec. 31			Sept. 30			June 30			Mar. 31
Net sales	$	5,459		$	5,412		$	5,487		$	5,251		$	5,213		$	5,211		$	5,132		$	4,848
Gross profit	1,789			1,815			1,816			1,678			1,678			1,745			1,684			1,541
Percent of net sales	32.8		%	33.5		%	33.1		%	32.0		%	32.2		%	33.5		%	32.8		%	31.8		%
Income before income taxes	726			439			694			565			635			1,694			572			467
Net income	632			416			611			487			634			1,401			517			434
Less net (income) loss for    noncontrolling interests	(1		)	—			(1		)	1			—			—			(1		)	—
Net income attributable to Eaton ordinary shareholders	$	631		$	416		$	610		$	488		$	634		$	1,401		$	516		$	434
Net income per share attributable to Eaton ordinary shareholders
Diluted	$	1.46		$	0.95		$	1.39		$	1.10		$	1.43		$	3.14		$	1.15		$	0.96
Basic	1.46			0.96			1.40			1.11			1.44			3.16			1.16			0.97
Cash dividends declared per    ordinary share	$	0.66		$	0.66		$	0.66		$	0.66		$	0.60		$	0.60		$	0.60		$	0.60
Earnings per share for the four quarters in a year may not equal full year earnings per share.
Acquisition integration charges included in Income before income taxes are as follows:
	Quarter ended in 2018												Quarter ended in 2017
	Dec. 31			Sept. 30			June 30			Mar. 31			Dec. 31			Sept. 30			June 30			Mar. 31
Acquisition integration charges	$	—		$	—		$	—		$	—		$	1		$	1		$	1		$	1

FIVE-YEAR CONSOLIDATED FINANCIAL SUMMARY (unaudited)

(In millions except for per share data)	2018			2017			2016			2015			2014
Net sales	$	21,609		$	20,404		$	19,747		$	20,855		$	22,552
Income before income taxes	2,424			3,368			2,118			2,133			1,762
Net income	2,146			2,986			1,919			1,974			1,804
Less net income for noncontrolling interests	(1		)	(1		)	(3		)	(2		)	(10		)
Net income attributable to Eaton ordinary shareholders	$	2,145		$	2,985		$	1,916		$	1,972		$	1,794
Net income per share attributable to Eaton ordinary shareholders
Diluted	$	4.91		$	6.68		$	4.20		$	4.22		$	3.76
Basic	4.93			6.71			4.21			4.23			3.78
Weighted-average number of ordinary shares outstanding
Diluted	436.9			447.0			456.5			467.1			476.8
Basic	434.3			444.5			455.0			465.5			474.1
Cash dividends declared    per ordinary share	$	2.64		$	2.40		$	2.28		$	2.20		$	1.96
Total assets	$	31,092		$	32,623		$	30,476		$	31,059		$	33,557
Long-term debt	6,768			7,167			6,711			7,746			7,982
Total debt	7,521			7,751			8,277			8,414			8,992
Eaton shareholders' equity	16,107			17,253			14,954			15,249			15,856
Eaton shareholders' equity    per ordinary share	$	38.02		$	39.22		$	33.28		$	33.24		$	33.89
Ordinary shares outstanding	423.6			439.9			449.4			458.8			467.9

EX-21

Eaton Corporation plc

2018 Annual Report on Form 10-K

Item 15(b)

Exhibit 21

Subsidiaries of Eaton Corporation plc

Eaton is publicly held and has no parent corporation. Eaton’s subsidiaries as of December 31, 2018, and the state or country in which each was organized, are as follows:

Consolidated Subsidiaries (A)	Where Organized
Illumination Management Solutions, Inc.	California
Bussmann International Holdings, LLC	Delaware
Bussmann International, Inc.	Delaware
CBE Services, Inc.	Delaware
Cooper B-Line, Inc.	Delaware
Cooper Bussmann, LLC	Delaware
Cooper Crouse-Hinds MTL, Inc.	Delaware
Cooper Crouse-Hinds, LLC	Delaware
Cooper Electrical International, LLC	Delaware
Cooper Enterprises LLC	Delaware
Cooper Finance USA, Inc.	Delaware
Cooper Industries International, LLC	Delaware
Cooper Industries Middle East, LLC	Delaware
Cooper Industries Poland, LLC	Delaware
Cooper Industries Vietnam, LLC	Delaware
Cooper Industries, LLC	Delaware
Cooper Interconnect, Inc.	Delaware
Cooper Lighting, LLC	Delaware
Cooper Notification, Inc.	Delaware
Cooper Power Systems, LLC	Delaware
Cooper Technologies Company	Delaware
Eaton Aerospace LLC	Delaware
Eaton Automated Transmission Technologies Corporation	Delaware
Eaton Electric Holdings LLC	Delaware
Eaton Hydraulics LLC	Delaware
Eaton Industrial Corporation	Delaware
Eaton Industries (Philippines), LLC	Delaware
Eaton Industries XVI LLC	Delaware
Eaton Worldwide LLC	Delaware
EIC Holding GP I	Delaware
EIC Holding GP II	Delaware
EIC Holding GP III	Delaware
EIC Holding GP IV	Delaware
EIC Holding I LLC	Delaware
EIC Holding II LLC	Delaware
EIC Holding III LLC	Delaware
EIC Holding IV LLC	Delaware
EIC Holding V LLC	Delaware
EIC Holding VI LLC	Delaware
McGraw-Edison Development Corporation	Delaware
MTL Instruments LLC	Delaware
MTL Partners II, Inc.	Delaware

Consolidated Subsidiaries (A)	Where Organized
MTL Partners, Inc.	Delaware
Standard Automation & Control LP	Delaware
Wright Line Holding, Inc.	Delaware
Wright Line LLC	Delaware
Azonix Corporation	Massachusetts
Eaton Ann Arbor LLC	Michigan
Cannon Technologies, Inc.	Minnesota
Cooper Wheelock, Inc.	New Jersey
Cooper Wiring Devices, Inc.	New York
Chagrin Highlands III Limited	Ohio
Eaton Aeroquip LLC	Ohio
Eaton Corporation	Ohio
Eaton Holding LLC	Ohio
Eaton Holding X, Inc.	Ohio
Eaton Leasing Corporation	Ohio
Sure Power, Inc.	Oregon
Eaton Industries IX LLC	Texas
Eaton Industries VIII LLC	Texas
Eaton Industries (Argentina) S.A.	Argentina
Cooper Electrical Australia Pty. Limited	Australia
Eaton Industries Pty. Ltd.	Australia
Eaton Technologies (Australia) Pty Ltd	Australia
CTI-VIENNA Gesellschaft zur Prüfung elektrotechnischer Industrieprodukte GmbH	Austria
Eaton Holding (Austria) G.m.b.H.	Austria
Eaton Holding G.m.b.H.	Austria
Eaton Industries (Austria) G.m.b.H.	Austria
Eaton Holding SRL	Barbados
Eaton Electric SPRL	Belgium
Eaton Filtration BVBA	Belgium
Eaton Industries (Belgium) BVBA	Belgium
Cooper Bermuda Investments Ltd.	Bermuda Islands
Cooper Finance Group Ltd.	Bermuda Islands
Cooper Investment Group Ltd.	Bermuda Islands
Eaton Industries Holdings Ltd.	Bermuda Islands
Saturn Insurance Company Ltd.	Bermuda Islands
Aeroquip do Brasil Ltda.	Brazil
Blinda Industria e Comercio Ltda.	Brazil
Bussmann do Brasil Ltda.	Brazil
Cooper Power Systems do Brasil Ltda.	Brazil
Eaton Ltda.	Brazil
Eaton Power Solution Ltda.	Brazil
Hernis Scan System do Brasil Comercio E Servicos LTDA	Brazil
Moeller Electric Ltda.	Brazil
Moeller Industria de electro-electronicos do Amazonas Ltda.	Brazil
Digital Lighting Holdings Limited	British Virgin Islands
Nittan BVI Co. Ltd.	British Virgin Islands
Phoenixtec International Corp.	British Virgin Islands
Senyuan International Investments Limited	British Virgin Islands
Silver Light International Limited	British Virgin Islands

Consolidated Subsidiaries (A)	Where Organized
Winner Hydraulics Ltd.	British Virgin Islands
Eaton Industries EOOD	Bulgaria
Aeroquip-Vickers Canada Company	Canada
Cooper Finance (Canada) L.P.	Canada
Cooper Industries (Canada) Company	Canada
Cooper Industries (Electrical) Inc.	Canada
Cyme International T & D Inc.	Canada
Eaton ETN Offshore Company	Canada
Eaton ETN Offshore II Company	Canada
Eaton Industries (Canada) Company	Canada
Cutler-Hammer Electrical Company	Cayman Islands
Cutler-Hammer Industries Ltd.	Cayman Islands
Eaton Holding I Limited	Cayman Islands
Eaton Holding II Limited	Cayman Islands
Eaton Holding III Limited	Cayman Islands
Georgetown Financial Services Ltd.	Cayman Islands
Senyuan International Holdings Limited	Cayman Islands
Eaton Industries (Chile) S.p.A.	Chile
Beijing Internormen-Filter Ltd. Co.	China
Beijing Yoosung Shinhwa Automobile Parts Co., Ltd.	China
Cooper (China) Co., Ltd.	China
Cooper (Ningbo) Electric Co., Ltd.	China
Cooper Edison (Pingdingshan) Electronic Technologies Co., Ltd.	China
Cooper Electric (Changzhou) Co., Ltd.	China
Cooper Electric (Shanghai) Co., Ltd.	China
Cooper Electronic Technologies (Shanghai) Co., Ltd.	China
Cooper Shanghai Power Capacitor Co., Ltd.	China
Cooper Xi'an Fusegear Co., Ltd.	China
Cooper Yuhua (Changzhou) Electric Equipment Manufacturing Co., Ltd.	China
Digital Lighting (Dong Guan) Co., Ltd.	China
Dongguan Cooper Electronics Co. Ltd.	China
Dongguan Wiring Devices Electronics Co., Ltd.	China
Eaton (China) Investments Co., Ltd.	China
Eaton Electrical Equipment Co Ltd	China
Eaton Electrical Ltd.	China
Eaton Filtration (Shanghai) Co. Ltd.	China
Eaton Fluid Power (Shanghai) Co., Ltd.	China
Eaton Fu Li An (Changzhou) Electronics Co., Ltd.	China
Eaton Hydraulics (Luzhou) Co., Ltd.	China
Eaton Hydraulics (Ningbo) Co., Ltd.	China
Eaton Hydraulics Systems (Jining) Co., Ltd.	China
Eaton Industrial Clutches and Brakes (Shanghai) Co., Ltd.	China
Eaton Industries (Jining) Co., Ltd	China
Eaton Industries (Shanghai) Co., Ltd	China
Eaton Industries (Wuxi) Co., Ltd.	China
Eaton Power (Shanghai) Trading Limited Partnership	China
Eaton Power Quality (Shanghai) Co., Ltd.	China
Eaton Senstar Automotive Fluid Connector (Shanghai) Co., Ltd.	China
Guangzhou Nittan Valve Co. Ltd.	China

Consolidated Subsidiaries (A)	Where Organized
Kaicheng Funke+Huster (Tangshan) Mining Electrical Co. Ltd.	China
Lian Zheng Electronics (Shenzhen) Co., Ltd.	China
Moeller Electric (Shanghai) Co., Ltd.	China
Phoenixtec Electronics (Shenzhen) Co., Ltd.	China
Rizhao Yoosung Shinhwa Automobile Parts Co., Ltd.	China
Santak Electronic (Shenzhen) Co., Ltd.	China
Cooper Industries Colombia S.A.S.	Colombia
Eaton Industries (Colombia) S.A.S.	Colombia
Eaton Electrical Srl	Costa Rica
Eaton Electric s.r.o.	Czech Republic
Eaton Elektrotechnika s.r.o.	Czech Republic
Eaton Industries s.r.o.	Czech Republic
Eaton Electric ApS	Denmark
Eaton Filtration (Denmark) ApS	Denmark
Cutler-Hammer, SRL	Dominican Republic
Eaton Industries (Egypt) LLC	Egypt
Eaton Power Quality OY (Finland)	Finland
Cooper Capri S.A.S.	France
Cooper Menvier France SARL	France
Cooper Securite S.A.S.	France
Eaton France Holding SAS	France
Eaton Industries (France) S.A.S.	France
Eaton Power Quality S.A.S.	France
Eaton S.A.S.	France
Eaton Technologies S.A.	France
Martek Power F SAS	France
MP Group SAS	France
MTL Instruments SARL	France
Sefelec SAS	France
CEAG Notlichtsysteme GmbH	Germany
Cooper Crouse-Hinds GmbH	Germany
Cooper Germany Holdings GmbH	Germany
Cooper Industries Finanzierungs-GbR	Germany
Eaton Electric G.m.b.H.	Germany
Eaton Electrical IP G.m.b.H. & Co. KG	Germany
Eaton Germany G.m.b.H.	Germany
Eaton Germany Holdings GmbH	Germany
Eaton GmbH & Co. KG	Germany
Eaton Holding SE & Co. KG	Germany
Eaton Industrial IP G.m.b.H. & Co. KG	Germany
Eaton Industries G.m.b.H.	Germany
Eaton Industries Holding G.m.b.H.	Germany
Eaton Production International G.m.b.H.	Germany
Eaton Protection Systems IP G.m.b.H. & Co. KG	Germany
Eaton Safety IP G.m.b.H. & Co. KG	Germany
Eaton SE	Germany
Eaton Technologies G.m.b.H.	Germany
Eaton Technologies IP G.m.b.H. & Co. KG	Germany
FHF Bergbautechnik GmbH & Co. KG	Germany

Consolidated Subsidiaries (A)	Where Organized
FHF Funke+Huster Fernsig GmbH	Germany
FHF New World GmbH	Germany
Funke+Huster GmbH	Germany
GeCma Components electronic GmbH	Germany
Hein Moeller Stiftung G.m.b.H.	Germany
Institute for International Product Safety G.m.b.H.	Germany
Martek Power GmbH	Germany
MTL Instruments GmbH	Germany
Sefelec GmbH	Germany
Cooper Univel S.A.	Greece
Digital Lighting Co., Limited	Hong Kong
Eaton Electric & Engineering Services Limited	Hong Kong
Eaton Enterprises Limited	Hong Kong
Eaton Power Quality Limited	Hong Kong
Riseson International Limited	Hong Kong
Santak Electronics Company Limited	Hong Kong
Scoremax Limited	Hong Kong
Silver Victory Hong Kong Limited	Hong Kong
Vickers Systems Limited	Hong Kong
Eaton Enterprises (Hungary) Kft.	Hungary
Eaton Industries KFT	Hungary
Eaton Manufacturing Hungary Kft.	Hungary
Eaton Fluid Power Limited	India
Eaton India Innovation Center LLP	India
Eaton Industrial Products Pvt. Ltd.	India
Eaton Industrial Systems Private Limited	India
Eaton Management Services LLP	India
Eaton Power Quality Private Limited	India
Eaton Technologies Private Limited	India
MTL Instruments Private Limited	India
PT Eaton Industries	Indonesia
PT. Fluid Sciences Batam	Indonesia
Abeiron III Unlimited Company	Ireland
Cooper Industries Trading Unlimited Company	Ireland
Cooper Industries Unlimited Company	Ireland
Eaton Capital Global Holdings Unlimited Company	Ireland
Eaton Capital Unlimited Co	Ireland
Eaton Industries (Ireland) Limited	Ireland
Eaton Industries I Unlimited Company	Ireland
Eaton Industries II Unlimited Company	Ireland
Eaton Industries III Unlimited Company	Ireland
Eaton Industries IV Unlimited Company	Ireland
Eaton Industries V Unlimited Company	Ireland
Eaton Industries VI Unlimited Company	Ireland
Eaton Industries VII Unlimited Company	Ireland
Eaton Industries X Unlimited Company	Ireland
Eaton Industries XI Unlimited Company	Ireland
Eaton Industries XII Unlimited Company	Ireland
Eaton Industries XIII Unlimited Company	Ireland

Consolidated Subsidiaries (A)	Where Organized
Eaton Industries XIV Unlimited Company	Ireland
Eaton Industries XV Unlimited Company	Ireland
Eaton Industries XVIII Unlimited Company	Ireland
Eaton Industries XIX Unlimited Company	Ireland
Eaton Intelligent Power Limited	Ireland
Eaton Manufacturing Limited	Ireland
Eaton Teorainn Unlimited Company	Ireland
TT (Ireland) Acquisition Limited	Ireland
Eaton Global Holdings II Limited	Isle of Man
Eaton Global Holdings Limited	Isle of Man
Eaton Global Limited	Isle of Man
Eaton Industries (Israel) Ltd.	Israel
Cooper Csa Srl	Italy
Eaton Filtration (Italy) S.r.l.	Italy
Eaton Fluid Power S.r.l.	Italy
Eaton Industries (Italy) S.r.l.	Italy
Eaton S.r.l.	Italy
Gitiesse S.r.l.	Italy
MTL Italia Srl	Italy
Cooper Industries Japan K.K.	Japan
Eaton Electric (Japan) Ltd.	Japan
Eaton Filtration Ltd.	Japan
Eaton Industries (Japan) Ltd.	Japan
Eaton Japan G.K.	Japan
Cooper Korea Ltd.	Korea
Eaton Industries (Korea) Limited	Korea
Eaton Electric S.I.A.	Latvia
Aeroquip-Vickers International S.a.r.L.	Luxembourg
Cambridge International Sarl	Luxembourg
Cooper International Holdings S.a.r.l	Luxembourg
Cooper Investment Group S a.r.l.	Luxembourg
Cooper Offshore Holdings S.a.r.l. (Luxembourg)	Luxembourg
Eaton Controls (Luxembourg) S.a.r.l.	Luxembourg
Eaton Holding II S.a.r.l.	Luxembourg
Eaton Holding IV S.a.r.l.	Luxembourg
Eaton Holding IX S.a.r.l.	Luxembourg
Eaton Holding S.a.r.l.	Luxembourg
Eaton Holding V S.a.r.l.	Luxembourg
Eaton Holding VIII S.a.r.l.	Luxembourg
Eaton Moeller S.a.r.l.	Luxembourg
Eaton Services S.a.r.L.	Luxembourg
Eaton Technologies (Luxembourg) S.a.r.l.	Luxembourg
Green Holding S.a.r.l.	Luxembourg
Martek Power SA	Luxembourg
Cooper Industries Malaysia SDN BHD	Malaysia
Eaton Industries Sdn. Bhd.	Malaysia
ETN Asia International Limited	Mauritius
ETN Holding 1 Limited	Mauritius
ETN Holding 2 Limited	Mauritius

Consolidated Subsidiaries (A)	Where Organized
ETN Holding 3 Limited	Mauritius
Arrow-Hart, S. de R.L. de C.V.	Mexico
Bussmann, S. de R.L. de C.V.	Mexico
Componentes de Iluminacion, S. de R.L. de C.V.	Mexico
Cooper Crouse-Hinds, S. de R.L. de C.V.	Mexico
Cooper Lighting de Mexico, S. de R.L. de C.V.	Mexico
Cooper Mexico Distribucion, S. de R.L. de C.V.	Mexico
Cooper Wiring Devices de Mexico, S.A. de C.V.	Mexico
Cooper Wiring Devices Manufacturing, S. de R.L. de C.V.	Mexico
Eaton Controls, S. de R.L. de C.V.	Mexico
Eaton Enterprises, S. de R.L. de C.V.	Mexico
Eaton Industries, S. de R.L. de C.V.	Mexico
Eaton Solutions, S. de R.L. de C.V.	Mexico
Eaton Technologies, S. de R.L. de C.V.	Mexico
Eaton Trading Company, S. de R.L. de C.V.	Mexico
Eaton Truck Components, S. de R.L. de C.V.	Mexico
Electromanufacturas, S. de R.L. de C.V.	Mexico
Iluminacion Cooper de las Californias, S. de R.L. de C.V.	Mexico
Martek Power S.A. de C.V.	Mexico
Eaton Electric S.a.r.l.	Morocco
Eaton Industries (Morocco) LLC	Morocco
Cooper Crouse-Hinds B.V.	Netherlands
Cooper Industries Finance B.V.	Netherlands
Cooper Industries Global B.V.	Netherlands
Cooper Safety B.V.	Netherlands
Eaton B.V.	Netherlands
Eaton Holding (Netherlands) B.V.	Netherlands
Eaton Holding I B.V.	Netherlands
Eaton Holding III B.V.	Netherlands
Eaton Holding Turlock B.V.	Netherlands
Eaton Holding V B.V.	Netherlands
Eaton Holding VI B.V.	Netherlands
Eaton Holding VII B.V.	Netherlands
Eaton Holding VIII B.V.	Netherlands
Eaton Industries (Netherlands) B.V.	Netherlands
Eaton International B.V.	Netherlands
Eaton Moeller B.V.	Netherlands
MTL Instruments B.V.	Netherlands
Scantronic Benelux BV	Netherlands
Turlock B.V.	Netherlands
Eaton Industries Company	New Zealand
Eaton International Industries Nigeria Limited	Nigeria
Cooper Crouse-Hinds AS	Norway
Eaton Electric AS	Norway
Hernis Scan Systems A/S	Norway
Norex AS	Norway
Eaton Trading (FZC) LLC	Oman
Eaton Industries Panama S.A.	Panama
Eaton Industries SAC	Peru

Consolidated Subsidiaries (A)	Where Organized
Eaton Automotive Components Spolka z o.o.	Poland
Eaton Automotive Spolka z o.o.	Poland
Eaton Automotive Systems Spolka z o.o.	Poland
Eaton Electric Spolka z.o.o.	Poland
Eaton Filtration (Poland) Sp. z o.o.	Poland
Eaton I Spolka z.o.o.	Poland
Eaton Truck Components Spolka z o.o.	Poland
Cooper Pretronica Unipessoal Lda.	Portugal
Eaton Madeira SGPS Lda.	Portugal
Cooper Industries Romania SRL	Romania
Eaton Electric S.r.l.	Romania
Eaton Electro Productie S.r.l.	Romania
Cooper Industries Russia LLC	Russia
Eaton LLC	Russia
Eaton II LP	Scotland
Eaton III LP	Scotland
Eaton Industries LP	Scotland
Eaton IV LP	Scotland
Eaton LP	Scotland
Eaton Manufacturing LP	Scotland
Eaton Electric d.o.o.	Serbia
Eaton Electric (Singapore) Pte. Ltd.	Singapore
Eaton Industries Pte. Ltd.	Singapore
Hernis Scan Systems - Asia Pte Ltd.	Singapore
Eaton Electric s.r.o.	Slovak Republic
Eaton Electric (South Africa) Pty Ltd.	South Africa
Eaton Hydraulics (Proprietary) Limited	South Africa
Eaton Truck Components (Proprietary) Ltd.	South Africa
Aeroquip Iberica S.L.	Spain
Cooper Crouse-Hinds, S.A.	Spain
Eaton Industries (Spain) S.L.	Spain
Productos Eaton Livia S.L.	Spain
Eaton Holec AB	Sweden
Eaton Power Quality AB	Sweden
Ultronics Nordic Sales AB	Sweden
Eaton Automation G.m.b.H	Switzerland
Eaton Automation Holding G.m.b.H.	Switzerland
Eaton Industries II G.m.b.H.	Switzerland
Eaton Industries Manufacturing G.m.b.H.	Switzerland
Eaton Manufacturing G.m.b.H.	Switzerland
Eaton Manufacturing II G.m.b.H.	Switzerland
Eaton Manufacturing III G.m.b.H.	Switzerland
Eaton Switzerland Holding I GmbH	Switzerland
Eaton Switzerland Holding II GmbH	Switzerland
Centralion Industrial Inc.	Taiwan
Eaton Phoenixtec MMPL Co. Ltd.	Taiwan
RTE Far East Corporation	Taiwan
Eaton Electric (Thailand) Ltd	Thailand
Eaton Electric Company Ltd.	Thailand

Consolidated Subsidiaries (A)	Where Organized
Eaton Industries (Thailand) Ltd.	Thailand
Eaton Elektrik Ticaret Limited Sirketi	Turkey
Polimer Kaucuk Sanayi ve Pazarlama A.S.	Turkey
D.P. Eaton Electric	Ukraine
Cooper Crouse-Hinds (LLC)	United Arab Emirates
Cooper Industries FZE	United Arab Emirates
Eaton FZE	United Arab Emirates
Aeroquip (UK) Limited	United Kingdom
Aeroquip Limited	United Kingdom
Cooper Bussmann (U.K.) Limited	United Kingdom
Cooper Controls Limited	United Kingdom
Cooper Crouse-Hinds (UK) Ltd.	United Kingdom
Cooper Industries UK Subco Limited	United Kingdom
Cooper Security Limited	United Kingdom
Eaton Controls (UK) Limited	United Kingdom
Eaton Electric Limited	United Kingdom
Eaton Electrical Products Limited	United Kingdom
Eaton Electrical Systems Limited	United Kingdom
Eaton Holding (UK) II Limited	United Kingdom
Eaton Holding Limited	United Kingdom
Eaton Industries (England) Limited	United Kingdom
Eaton Industries (U.K.) Limited	United Kingdom
Eaton Limited	United Kingdom
Eaton MEDC Limited	United Kingdom
Eaton Safety Limited	United Kingdom
Menvier Limited	United Kingdom
Menvier Overseas Holdings Limited	United Kingdom
Oxalis Group Limited	United Kingdom
Scantronic Holdings Limited	United Kingdom
The MTL Instruments Group Limited	United Kingdom
Eaton Electrical, S.A.	Venezuela
(A) Other Eaton subsidiaries, many inactive, are not listed above. If considered in the aggregate, they would not be material.

EX-23

Eaton Corporation plc

2018 Annual Report on Form 10-K

Item 15(b)

Exhibit 23

Consent of Independent Registered Public Accounting Firm

We consent to the incorporation by reference in the following Registration Statements of our reports dated February 27, 2019, with respect to the consolidated financial statements of Eaton Corporation plc and the effectiveness of internal control over financial reporting of Eaton Corporation plc included in this Annual Report (Form 10-K) of Eaton Corporation plc for the year ended December 31, 2018:

Registration number	Description	Filing date
333-223296	Form S-3 Registration Statement	February 28, 2018
333-207689	Form S-8 Registration Statement-2015 Stock Plan	October 30, 2015
333-202308	Form S-3 Registration Statement	February 26, 2015
333-185206	Multiple plans - Form S-8 Registration Statement	November 30, 2012
	Amended and Restated 2012 Stock Plan
	Second Amended and Restated 2009 Stock Plan
	Amended and Restated 2008 Stock Plan
	Amended and Restated 2004 Stock Plan
	Amended and Restated 2002 Stock Plan
	Amended and Restated 1998 Stock Plan
	Amended and Restated 1995 Stock Plan
	Eaton Incentive Compensation Deferral Plan II
	Eaton Corporation Deferred Incentive Compensation Plan II
	2005 Non-Employee Director Fee Deferral Plan
	Eaton Savings Plan
	Eaton Personal Investment Plan
	Eaton Puerto Rico Retirement Savings Plan
	Cooper Retirement Savings and Stock Ownership Plan

/s/ Ernst & Young LLP

Cleveland, Ohio

February 27, 2019

EX-24

Eaton Corporation plc

2018 Annual Report on Form 10-K

Item 15(b)

Exhibit 24

Power of Attorney

KNOW ALL MEN BY THESE PRESENTS: That each person whose name is signed below has made, constituted and appointed, and by this instrument does make, constitute and appoint Richard H. Fearon, Ken D. Semelsberger or James P. Even his or her true and lawful attorney and agent, for him or her and in his or her name, place and stead to execute and subscribe, as attorney-in-fact, his or her signature as Director or Officer or both, as the case may be, of Eaton Corporation plc, to its Annual Report on Form 10-K for the year ended December 31, 2018 pursuant to the Securities Exchange Act of 1934, and to any and all amendments to that Annual Report, hereby giving and granting unto each such attorney-in-fact full power and authority to do and perform every act and thing whatsoever necessary to be done in the premises, including to file the Annual Report on Form 10-K with the Securities and Exchange Commission, as fully as he or she might or could do if personally present, hereby ratifying and confirming all that each such attorney-in-fact shall lawfully do or cause to be done by virtue hereof.

This Power of Attorney shall not apply to any Annual Report on Form 10-K or amendment thereto filed after December 31, 2019.

IN WITNESS WHEREOF, this Power of Attorney has been signed at Cleveland, Ohio, U.S.A. this 27th day of February, 2019.

/s/ Craig Arnold	/s/ Richard H. Fearon
Craig Arnold, Chairman; Principal Executive Officer; Director	Richard H. Fearon, Principal Financial Officer; Director
	/s/ Todd M. Bluedorn
Ken D. Semelsberger, Principal Accounting Officer	Todd M. Bluedorn, Director
/s/ Christopher M. Connor	/s/ Michael J. Critelli
Christopher M. Connor, Director	Michael J. Critelli, Director
/s/ Charles E. Golden	/s/ Arthur E. Johnson
Charles E. Golden, Director	Arthur E. Johnson, Director
/s/ Deborah L. McCoy
Deborah L. McCoy, Director	Gregory R. Page, Director
/s/ Sandra Pianalto	/s/ Gerald B. Smith
Sandra Pianalto, Director	Gerald B. Smith, Director
/s/ Dorothy C. Thompson
Dorothy C. Thompson, Director

EX-31.1

Eaton Corporation plc

2018 Annual Report on Form 10-K

Item 15(b)

Exhibit 31.1

Certification

I, Craig Arnold, certify that:

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

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

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

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

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

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

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

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

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

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

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

Date:	February 27, 2019	/s/ Craig Arnold
		Craig Arnold
		Principal Executive Officer

EX-31.2

Eaton Corporation plc

2018 Annual Report on Form 10-K

Item 15(b)

Exhibit 31.2

Certification

I, Richard H. Fearon, certify that:

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

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

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

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

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

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

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

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

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

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

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

Date:	February 27, 2019	/s/ Richard H. Fearon
		Richard H. Fearon
		Principal Financial Officer

EX-32.1

Eaton Corporation plc

2018 Annual Report on Form 10-K

Item 15(b)

Exhibit 32.1

Certification

This written statement is submitted in accordance with Section 906 of the Sarbanes-Oxley Act of 2002. It accompanies Eaton Corporation plc’s Annual Report on Form 10-K for the year ended December 31, 2018 (“10-K Report”).

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

Date:	February 27, 2019	/s/ Craig Arnold
		Craig Arnold
		Principal Executive Officer

EX-32.2

Eaton Corporation plc

2018 Annual Report on Form 10-K

Item 15(b)

Exhibit 32.2

Certification

This written statement is submitted in accordance with Section 906 of the Sarbanes-Oxley Act of 2002. It accompanies Eaton Corporation plc’s Annual Report on Form 10-K for the year ended December 31, 2018 (“10-K Report”).

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

Date:	February 27, 2019	/s/ Richard H. Fearon
		Richard H. Fearon
		Principal Financial Officer

XML

Document and Entity Information Document - USD ($) shares in Millions, $ in Billions	12 Months Ended
	Dec. 31, 2018	Jan. 31, 2019	Jun. 30, 2018
Document and Entity Information [Abstract]
Entity Registrant Name	Eaton Corp plc
Entity Central Index Key	0001551182
Trading Symbol	ETN
Document Type	10-K
Document Period End Date	Dec. 31, 2018
Amendment Flag	false
Document Fiscal Year Focus	2018
Document Fiscal Period Focus	FY
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Public Float			$ 32.4
Entity Ordinary Shares, Shares Outstanding		423.6

XML

Consolidated Statements of Income - USD ($) shares in Millions, $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Income Statement [Abstract]
Net sales	$ 21,609	$ 20,404	$ 19,747
Cost of products sold	14,511	13,756	13,396
Selling and administrative expense	3,548	3,526	3,464
Research and development expense	584	584	587
Interest expense - net	271	246	233
Gain on sale of business	0	1,077	0
Arbitration decision expense	275	0	0
Other (income) expense - net	(4)	1	(51)
Income before income taxes	2,424	3,368	2,118
Income tax expense	278	382	199
Net income	2,146	2,986	1,919
Less net income for noncontrolling interests	(1)	(1)	(3)
Net income attributable to Eaton ordinary shareholders	$ 2,145	$ 2,985	$ 1,916
Net income per share attributable to Eaton ordinary shareholders
Net income per ordinary share - diluted (usd per share)	$ 4.91	$ 6.68	$ 4.20
Basic (usd per share)	$ 4.93	$ 6.71	$ 4.21
Weighted-average number of ordinary shares outstanding
Diluted (shares)	436.9	447.0	456.5
Basic (shares)	434.3	444.5	455.0
Cash dividends declared per ordinary share (usd per share)	$ 2.64	$ 2.40	$ 2.28

XML

Consolidated Statements of Comprehensive Income - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Statement of Comprehensive Income [Abstract]
Net income	$ 2,146	$ 2,986	$ 1,919
Less net income for noncontrolling interests	(1)	(1)	(3)
Net income attributable to Eaton ordinary shareholders	2,145	2,985	1,916
Other comprehensive income (loss), net of tax
Currency translation and related hedging instruments	(609)	807	(570)
Pensions and other postretirement benefits	(139)	241	(6)
Cash flow hedges	7	(4)	(9)
Other comprehensive (loss) income attributable to Eaton ordinary shareholders	(741)	1,044	(585)
Total comprehensive income attributable to Eaton ordinary shareholders	$ 1,404	$ 4,029	$ 1,331

XML

Consolidated Balance Sheets - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017
Current assets
Cash	$ 283	$ 561
Short-term investments	157	534
Accounts receivable - net	3,858	3,943
Inventory	2,785	2,620
Prepaid expenses and other current assets	507	679
Total current assets	7,590	8,337
Property, plant and equipment
Land and buildings	2,466	2,491
Machinery and equipment	6,106	6,014
Gross property, plant and equipment	8,572	8,505
Accumulated depreciation	(5,105)	(5,003)
Net property, plant and equipment	3,467	3,502
Other noncurrent assets
Goodwill	13,328	13,568
Other intangible assets	4,846	5,265
Deferred income taxes	293	253
Other assets	1,568	1,698
Total assets	31,092	32,623
Current liabilities
Short-term debt	414	6
Current portion of long-term debt	339	578
Accounts payable	2,130	2,166
Accrued compensation	457	453
Other current liabilities	1,814	1,872
Total current liabilities	5,154	5,075
Noncurrent liabilities
Long-term debt	6,768	7,167
Pension liabilities	1,304	1,226
Other postretirement benefits liabilities	321	362
Deferred income taxes	349	538
Other noncurrent liabilities	1,054	965
Total noncurrent liabilities	9,796	10,258
Shareholders’ equity
Ordinary shares (423.6 million outstanding in 2018 and 439.9 million in 2017)	4	4
Capital in excess of par value	12,090	11,987
Retained earnings	8,161	8,669
Accumulated other comprehensive loss	(4,145)	(3,404)
Shares held in trust	(3)	(3)
Total Eaton shareholders’ equity	16,107	17,253
Noncontrolling interests	35	37
Total equity	16,142	17,290
Total liabilities and equity	$ 31,092	$ 32,623

XML

Consolidated Balance Sheets Parentheticals - shares shares in Millions	Dec. 31, 2018	Dec. 31, 2017
Statement of Financial Position [Abstract]
Ordinary shares outstanding shares	423.6	439.9

XML

Consolidated Statements of Cash Flows - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Operating activities
Net income	$ 2,146	$ 2,986	$ 1,919
Adjustments to reconcile to net cash provided by operating activities
Depreciation and amortization	903	914	929
Deferred income taxes	(115)	(206)	(83)
Pension and other postretirement benefits expense	159	208	235
Contributions to pension plans	(126)	(473)	(262)
Contributions to other postretirement benefits plans	(25)	(20)	(30)
Gain on sale of business, net	0	843	0
Changes in working capital
Accounts receivable - net	(123)	(231)	(170)
Inventory	(242)	(202)	34
Accounts payable	23	388	0
Accrued compensation	23	59	20
Accrued income and other taxes	(31)	(4)	30
Other current assets	71	2	(21)
Other current liabilities	144	(203)	(44)
Other - net	(149)	291	13
Net cash provided by operating activities	2,658	2,666	2,570
Investing activities
Capital expenditures for property, plant and equipment	(565)	(520)	(497)
Proceeds from sale of business	0	607	0
Sales (purchases) of short-term investments - net	355	(298)	(40)
Payments for settlement of currency exchange contracts not designated as hedges - net	(110)	0	0
Other - net	(78)	(6)	8
Net cash used in investing activities	(398)	(217)	(529)
Financing activities
Proceeds from borrowings	410	1,000	631
Payments on borrowings	(574)	(1,554)	(653)
Cash dividends paid	(1,149)	(1,068)	(1,037)
Exercise of employee stock options	29	66	74
Repurchase of shares	(1,271)	(850)	(730)
Employee taxes paid from shares withheld	(24)	(22)	(18)
Other - net	(2)	(14)	(5)
Net cash used in financing activities	(2,581)	(2,442)	(1,738)
Effect of currency on cash	43	11	(28)
Total increase (decrease) in cash	(278)	18	275
Cash at the beginning of the period	561	543	268
Cash at the end of the period	$ 283	$ 561	$ 543

XML

Consolidated Statements of Shareholders' Equity Statement - USD ($) shares in Millions, $ in Millions	Total	Ordinary shares	Capital in excess of par value	Retained earnings	Accumulated other comprehensive loss	Shares held in trust	Total Eaton shareholders' equity	Noncontrolling interests
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance, adjusted balance	$ 15,294	$ 5	$ 11,701	$ 7,409	$ (3,863)	$ (3)	$ 15,249	$ 45
Beginning balance, shares at Dec. 31, 2015		458.8
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	1,919			1,916			1,916	3
Other comprehensive income (loss), net of tax	(585)				(585)		(585)
Cash dividends paid	(1,039)			(1,037)			(1,037)	(2)
Issuance of shares under equity-based compensation plans - net (net of income tax benefit), shares		2.4
Issuance of shares under equity-based compensation plans - net (net of income tax benefit)	141		144	(3)			141
Changes in noncontrolling interest of consolidated subsidiaries - net	(2)							(2)
Repurchase of shares, shares		(11.8)
Repurchase of shares	(730)			(730)			(730)
Ending balance, shares at Dec. 31, 2016		449.4
Ending balance at Dec. 31, 2016	14,998	$ 5	11,845	7,555	(4,448)	(3)	14,954	44
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Cumulative-effect adjustment upon adoption of ASU | ASU 2016-09	48			48			48
Net income	2,986			2,985			2,985	1
Other comprehensive income (loss), net of tax	1,044				1,044		1,044
Cash dividends paid	(1,073)			(1,068)			(1,068)	(5)
Issuance of shares under equity-based compensation plans - net (net of income tax benefit), shares		2.0
Issuance of shares under equity-based compensation plans - net (net of income tax benefit)	140		142	(2)			140
Changes in noncontrolling interest of consolidated subsidiaries - net	(3)							(3)
Repurchase of shares, shares		(11.5)
Repurchase of shares	(850)	$ 1		(849)			(850)
Ending balance, shares at Dec. 31, 2017		439.9
Ending balance at Dec. 31, 2017	17,290	$ 4	11,987	8,669	(3,404)	(3)	17,253	37
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Cumulative-effect adjustment upon adoption of ASU | Accounting Standards Update 2014-09 [Member]	(2)			(2)			(2)
Cumulative-effect adjustment upon adoption of ASU | Accounting Standards Update 2016-16 [Member]	(199)			(199)			(199)
Net income	2,146			2,145			2,145	1
Other comprehensive income (loss), net of tax	(741)				(741)		(741)
Cash dividends paid	(1,150)			(1,149)			(1,149)	(1)
Issuance of shares under equity-based compensation plans - net (net of income tax benefit), shares		1.2
Issuance of shares under equity-based compensation plans - net (net of income tax benefit)	100		103	(3)			100
Changes in noncontrolling interest of consolidated subsidiaries - net	(2)							(2)
Repurchase of shares, shares		(17.5)
Repurchase of shares	(1,300)			(1,300)			(1,300)
Ending balance, shares at Dec. 31, 2018		423.6
Ending balance at Dec. 31, 2018	$ 16,142	$ 4	$ 12,090	$ 8,161	$ (4,145)	$ (3)	$ 16,107	$ 35

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Consolidated Statements of Shareholders' Equity Parenthetical - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Statement of Stockholders' Equity [Abstract]
Issuance of shares under equity-based compensation plans - net, net of income tax benefit	$ 0	$ 0	$ 1

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Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2018

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

General Information and Basis of Presentation

Eaton Corporation plc (Eaton or the Company) is a power management company with 2018 net sales of $21.6 billion. The Company provides energy-efficient solutions that help its customers effectively manage electrical, hydraulic and mechanical power more reliably, safely and sustainably. Eaton has approximately 99,000 employees in 59 countries and sells products to customers in more than 175 countries.

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

The consolidated financial statements include the accounts of Eaton and all subsidiaries and other entities it controls. Intercompany transactions and balances have been eliminated. The equity method of accounting is used for investments in associate companies where the Company has significant influence and generally a 20% to 50% ownership interest. Equity investments are evaluated for impairment whenever events or circumstances indicate the book value of the investment exceeds fair value. An impairment would exist if there is an other-than-temporary decline in value. Income from equity investments is reported in Other (income) expense - net. Eaton does not have off-balance sheet arrangements or financings with unconsolidated entities. In the ordinary course of business, the Company leases certain real properties and equipment, as described in Note 9.

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

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 reportable segments that were re-segmented, previously reported segment financial information has been updated for 2016 and 2017. See Note 16 for additional information related to these segments.

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 an increase in Selling and administrative expense with a corresponding increase in Other income - net of $6 for the year ended December 31, 2018, a reduction in Selling and administrative expense with a corresponding decrease in Other income - net of $39 for the year ended December 31, 2017, and a reduction in Cost of products sold, Selling and administrative expense, and Research and development expense with a corresponding decrease in Other income - net of $56 for the year ended December 31, 2016.

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 added, 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 4 for additional information.

Goodwill and Indefinite Life Intangible Assets

Goodwill is evaluated annually for impairment as of July 1 using either a quantitative or qualitative analysis. Goodwill is tested for impairment at the reporting unit level, which is equivalent to Eaton's operating segments and based on the net assets for each segment, including goodwill and intangible assets. Goodwill is assigned to each operating segment, as this represents the lowest level that constitutes a business and is the level at which management regularly reviews the operating results. The Company performs a quantitative analysis using a discounted cash flow model and other valuation techniques, but may elect to perform a qualitative analysis. Additionally, goodwill is evaluated for impairment whenever an event occurs or circumstances change that would indicate that it is more likely than not that the fair value of an operating segment is less than its carrying amount.

The annual goodwill impairment test was performed using a qualitative analysis in 2018 and 2017 and a quantitative analysis in 2016. A qualitative analysis is performed by assessing certain trends and factors, including projected market outlook and growth rates, forecasted and actual sales and operating profit margins, discount rates, industry data, and other relevant qualitative factors. These trends and factors are compared to, and based on, the assumptions used in the most recent quantitative analysis performed for each reporting unit. The results of the qualitative analyses did not indicate a need to perform quantitative analysis.

Goodwill impairment testing was also performed using a quantitative analysis for the Electrical Products, Vehicle and eMobility segments in the first quarter of 2018 due to a reorganization of the Company's businesses resulting in the creation of the eMobility segment. The Company used the relative fair value method to reallocate goodwill among these reporting units.

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

Based on these analyses performed in 2018 and 2017, the fair value of Eaton's reporting units continue to substantially exceed their respective carrying amounts and thus, no impairment exists.

Indefinite life intangible assets consist of certain trademarks. They are evaluated annually for impairment as of July 1 using either a quantitative or qualitative analysis to determine whether their fair values exceed their respective carrying amounts. Indefinite life intangible asset impairment testing for 2018 and 2017 was performed using a quantitative analysis. The Company determines the fair value of these assets using a royalty relief methodology similar to that employed when the associated assets were acquired, but using updated estimates of future sales, cash flows and profitability. Additionally, indefinite life intangible assets are evaluated for impairment whenever an event occurs or circumstances change that would indicate that it is more likely than not that the asset is impaired. For 2018 and 2017, the fair value of indefinite lived intangible assets exceeded the respective carrying value.

For additional information about goodwill and other intangible assets, see Note 6.

Other Long-Lived Assets

Depreciation and amortization for property, plant and equipment, and intangible assets subject to amortization, are generally computed by the straight-line method and included in Cost of products sold, Selling and administrative expense, and Research and development expense, as appropriate. Cost of buildings are depreciated generally over 40 years and machinery and equipment over 3 to 10 years. At December 31, 2018, the weighted-average amortization period for intangible assets subject to amortization was 17 years for patents and technology; 17 years for customer relationships; and 17 years for certain trademarks. Software is generally amortized up to a life of 15 years.

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

Retirement Benefits Plans

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

Net actuarial gains or losses are amortized to expense on a plan-by-plan basis when they exceed the accounting corridor. The Company’s corridors are set at either 8% or 10%, depending on the plan, of the greater of the plan assets or benefit obligations. Gains or losses outside of the corridor are subject to amortization over an average employee future service period that differs by plan, but is approximately 11 years on a weighted average basis. If most or all of the plan’s participants are no longer actively accruing benefits, the average life expectancy is used.

Asset Retirement Obligations

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

Income Taxes

Deferred income tax assets and liabilities are determined based on the difference between the financial statement and tax basis of the respective assets and liabilities, using enacted tax rates in effect for the year when the differences are expected to reverse. Deferred income tax assets are recognized for income tax loss carryforwards and income tax credit carryforwards. Judgment is required in determining and evaluating income tax provisions and valuation allowances for deferred income tax assets. Eaton recognizes an income tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by taxing authorities, based on the technical merits of the position. Eaton evaluates and adjusts these accruals based on changing facts and circumstances. Eaton recognizes interest and penalties related to unrecognized income tax benefits in the provision for income tax expense. For additional information about income taxes, see Note 10.

Derivative Financial Instruments and Hedging Activities

Eaton uses derivative financial instruments to manage the exposure to the volatility in raw material costs, currency, and interest rates on certain debt. These instruments are marked to fair value in the accompanying Consolidated Balance Sheets. Changes in the fair value of derivative assets or liabilities (i.e., gains or losses) are recognized depending upon the type of hedging relationship and whether an instrument has been designated as a hedge. For those instruments that qualify for hedge accounting, Eaton designates the hedging instrument, based upon the exposure being hedged, as a cash flow hedge, a fair value hedge, or a hedge of a net investment in a foreign operation. Changes in fair value of these instruments that do not qualify for hedge accounting are recognized immediately in net income. See Note 14 for additional information about hedges and derivative financial instruments.

Recently Issued Accounting Pronouncements

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. ASU 2016-02 will require additional disclosures in the notes to the consolidated financial statements.

Eaton adopted the standard, and related amendments, in the first quarter of 2019 using the optional transition method and will not restate prior periods. The Company elected to use the package of practical expedients permitted under the transition guidance within the new standard, which among other things, allowed the carry forward of historical lease classification of existing leases. The Company made an accounting policy election to not recognize lease assets or liabilities for leases with a term of 12 months or less. Additionally, when accounting for leases, the Company combines payments for leased assets, related services and other components of a lease.

The Company is in the final stage of assessing the impact of adopting the standard. The Company collected the lease data required by the new standard, and has identified and is implementing the appropriate changes to business processes and controls to support recognition and disclosure under the new standard. In the first quarter of 2019, Eaton plans to conclude its testing of the new third-party lease accounting system. The Company expects to record a cumulative-effect adjustment of less than $1 to retained earnings as of January 1, 2019. Additionally, the adoption of the new standard will result in the recording of lease assets and lease liabilities for operating leases in the range of approximately $400 to $500 as of January 1, 2019. The Company does not expect the new standard to have a material impact to the Consolidated Statements of Income or Cash Flows.

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Sale and Acquisition of Businesses

12 Months Ended

Dec. 31, 2018

Business Combinations [Abstract]

Sale and Acquisition of Businesses

SALE AND ACQUISITION OF BUSINESSES

Agreement to acquire controlling interest of Ulusoy Elektrik Imalat Taahhut ve Ticaret A.S.

On January 31, 2019, Eaton reached a definitive agreement to acquire an 82.275% controlling interest in Ulusoy Elektrik Imalat Taahhut ve Ticaret A.S., a leading manufacturer of electrical switchgear based in Ankara, Turkey, with a primary focus on medium voltage solutions for industrial and utility customers. Its sales for the 12 months ended September 30, 2018 were $126. The purchase price for the shares is approximately $214 on a cash and debt free basis. As required by the Turkish capital markets legislation, Eaton plans to file an application to execute a mandatory tender offer for the remaining shares shortly after the transaction closes. The transaction is subject to customary closing conditions and regulatory approvals.

Sale of heavy-duty and medium-duty commercial vehicle automated transmission business

On July 31, 2017, Eaton sold a 50% interest in its heavy-duty and medium-duty commercial vehicle automated transmission business for $600 in cash to Cummins, Inc. The new joint venture is named Eaton Cummins Automated Transmission Technologies (ECATT). In 2017, the Company recognized a pre-tax gain of $1,077, of which $533 related to the pre-tax gain from the $600 proceeds from the sale and $544 related to the Company’s remaining 50% investment in the joint venture being remeasured to fair value. The after-tax gain was $843. The fair value is based on the price paid to Eaton for the 50% interest sold to Cummins, Inc. and further supported by a discounted cash flow model. Eaton accounts for its investment on the equity method of accounting.

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Acquisition Integration Charges

12 Months Ended

Dec. 31, 2018

Business Combinations [Abstract]

Acquisition Integration Charges

ACQUISITION INTEGRATION CHARGES

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

	2018		2017		2016
Electrical Products	$	—	$	4	$	3
Electrical Systems and Services	—		—		1
Total acquisition integration charges before income taxes	—		4		4
Income taxes	—		2		1
Total after income taxes	$	—	$	2	$	3
Per ordinary share - diluted	$	—	$	—	$	0.01

Business segment acquisition integration charges in 2017 related to the integration of Ephesus Lighting, Inc. (Ephesus), which was acquired in 2015. The charges associated with Ephesus were included in Selling and administrative expense. Business segment acquisition integration charges in 2016 related to the integration of Ephesus and Oxalis Group Ltd. (Oxalis), which was acquired in 2015. The charges associated with Ephesus were included in Cost of products sold and Selling and administrative expense, while the charges associated with Oxalis were included in Cost of products sold. In Business Segment Information in Note 16, the charges reduced Operating profit of the related business segment.

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Revenue Recognition (Notes)

12 Months Ended

Dec. 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 added, 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 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 16.

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.

	Year ended December 31, 2018
Net sales	United States		Rest of World		Total
Electrical Products	$	4,112	$	3,012	$	7,124
Electrical Systems and Services	3,936		2,088		6,024
Hydraulics	1,190		1,566		2,756
	Original Equipment Manufacturers		Aftermarket, Distribution and End User
Aerospace	$	1,085	$	811	1,896
	Commercial		Passenger and Light Duty
Vehicle	$	1,759	$	1,730	3,489
eMobility					320
Total					$	21,609

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 $3,402 and $3,399 at December 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 Consolidated Balance Sheets on a contract-by-contract basis at the end of each reporting period. Unbilled receivables were $94 and $117 at December 31, 2018 and January 1, 2018, respectively, and are recorded in Prepaid expenses and other current assets. The decrease in unbilled receivables was primarily due to billings to customers for amounts previously recognized as revenue, partially offset by revenue recognized and not yet billed.

Changes in the deferred revenue liabilities are as follows:

	Deferred Revenue
Balance at January 1, 2018	$	227
Customer deposits and billings	967
Revenue recognized in the period	(939		)
Translation	(7		)
Balance at December 31, 2018	$	248

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 December 31, 2018 was approximately $5.3 billion. Eaton expects to recognize approximately 87% 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 consolidated financial statements was as follows:

	Year ended December 31, 2018
Consolidated Statements of Income	As Reported		Adjustment			Balances without Adoption of ASC 606
Net sales	$	21,609	$	(30	)	$	21,579
Cost of products sold	14,511		(20		)	14,491
Income before income taxes	2,424		(10		)	2,414
Income tax expense	278		(2		)	276
Net income	2,146		(8		)	2,138
Net income attributable to Eaton ordinary shareholders	$	2,145	$	(8	)	$	2,137

	December 31, 2018
Consolidated Balance Sheets	As Reported		Adjustment			Balances without Adoption of ASC 606
Assets
Accounts receivable - net	$	3,858	$	60		$	3,918
Inventory	2,785		18			2,803
Prepaid expenses and other current assets	507		(109		)	398
Deferred income taxes	293		(1		)	292
Liabilities and shareholders’ equity
Other current liabilities	$	1,814	$	(26	)	$	1,788
Eaton shareholders' equity	$	16,142	$	(6	)	$	16,136

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Restructuring Charges Restructuring Charges

12 Months Ended

Dec. 31, 2018

Restructuring and Related Activities [Abstract]

Restructuring and Related Activities Disclosure

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 closing 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	(36		)	(4		)	(40		)
Other adjustments	(17		)	—			(17		)
Balance at December 31, 2018	$	14		$	1		$	15

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Goodwill and Other Intangible Assets

12 Months Ended

Dec. 31, 2018

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangible Assets

GOODWILL AND OTHER INTANGIBLE ASSETS

Changes in the carrying amount of goodwill by segment follow:

	December 31, 2016		Goodwill written off from sale of business			Translation		December 31, 2017		Translation			December 31, 2018
Electrical Products	$	6,418	$	—		$	260	$	6,678	$	(116	)	$	6,562
Electrical Systems and Services	4,203		(3		)	111		4,311		(70		)	4,241
Hydraulics	1,221		—			36		1,257		(45		)	1,212
Aerospace	938		—			9		947		(6		)	941
Vehicle	342		(52		)	4		294		(2		)	292
eMobility	79		—			2		81		(1		)	80
Total	$	13,201	$	(55	)	$	422	$	13,568	$	(240	)	$	13,328

A summary of other intangible assets follows:

	2018				2017
	Historical cost		Accumulated amortization		Historical cost		Accumulated amortization
Intangible assets not subject to amortization
Trademarks	$	1,626			$	1,654
Intangible assets subject to amortization
Customer relationships	$	3,463	$	1,600	$	3,586	$	1,475
Patents and technology	1,329		646		1,395		628
Trademarks	1,032		419		1,137		473
Other	92		31		99		30
Total intangible assets subject to amortization	$	5,916	$	2,696	$	6,217	$	2,606

Amortization expense related to intangible assets subject to amortization in 2018, and estimated amortization expense for each of the next five years, follows:

2018	$	368
2019	357
2020	352
2021	341
2022	332
2023	283

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Debt

12 Months Ended

Dec. 31, 2018

Debt Disclosure [Abstract]

Debt

DEBT

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

	2018			2017
5.60% notes due 2018 ($415 converted to floating rate by interest rate swap)	$	—		$	450
4.215% Japanese yen notes due 2018	—			88
6.95% notes due 2019 ($300 converted to floating rate by interest rate swap)	300			300
3.875% debentures due 2020 ($150 converted to floating rate by interest rate swap)	239			239
3.47% notes due 2021 ($275 converted to floating rate by interest rate swap)	300			300
8.10% debentures due 2022 ($100 converted to floating rate by interest rate swap)	100			100
2.75% senior notes due 2022 ($1,400 converted to floating rate by interest rate swap)	1,600			1,600
3.68% notes due 2023 ($200 converted to floating rate by interest rate swap)	300			300
0.75% euro notes due 2024	629			659
6.50% debentures due 2025	145			145
3.10% senior notes due 2027	700			700
7.65% debentures due 2029 ($50 converted to floating rate by interest rate swap)	200			200
4.00% senior notes due 2032	700			700
5.45% debentures due 2034 ($25 converted to floating rate by interest rate swap)	136			136
5.80% notes due 2037	240			240
4.15% senior notes due 2042	1,000			1,000
3.92% senior notes due 2047	300			300
5.25% to 8.875% notes (maturities ranging from 2019 to 2035, including $50 converted to floating rate by interest rate swap)	203			239
Other	15			49
Total long-term debt	7,107			7,745
Less current portion of long-term debt	(339		)	(578		)
Long-term debt less current portion	$	6,768		$	7,167

Substantially all these long-term debt instruments are fully and unconditionally guaranteed on an unsubordinated, unsecured basis by Eaton and certain of its direct and indirect subsidiaries (the Senior Notes). Further, as of December 31, 2018 all of these long-term debt instruments except the 3.875% debentures due 2020, the 3.47% notes due 2021, the 3.68% notes due 2023, and the 0.75% Euro notes due 2024 are registered by Eaton Corporation under the Securities Act of 1933, as amended (the Registered Senior Notes).

The Company maintains long-term revolving credit facilities totaling $2,000, consisting of a $500three-year revolving credit facility that will expire November 17, 2020, a $750five-year revolving credit facility that will expire October 14, 2021, and a $750five-year revolving credit facility that will expire November 17, 2022. The revolving credit facilities are used to support commercial paper borrowings and are fully and unconditionally guaranteed by Eaton and certain of its direct and indirect subsidiaries on an unsubordinated, unsecured basis. There were no borrowings outstanding under Eaton's revolving credit facilities at December 31, 2018 or 2017. The Company had available lines of credit of $1,079 from various banks primarily for the issuance of letters of credit, of which there was $265 of letters of credit issued thereunder at December 31, 2018. Borrowings outside the United States are generally denominated in local currencies.

The Company repaid the 5.60% notes on May 15, 2018 for $450 and the 4.215% Japanese yen notes on December 17, 2018 for $88. The Company repaid the 5.30% notes on March 15, 2017 for $250, the 6.10% debentures on June 29, 2017 for $289 and the 1.50% senior notes on November 2, 2017 for $1,000.

Short-term debt of $414 at December 31, 2018 included $388 of short-term commercial paper in the United States, which had a weighted average interest rate of 2.97%, and $26 of short-term debt outside the United States.

On September 15, 2017, a subsidiary of Eaton issued senior notes (the 2017 Senior Notes) with a face amount of $1,000. The 2017 Senior Notes are comprised of two tranches of $700 and $300, which mature in 2027 and 2047, respectively, with interest payable semi-annually at a respective rate of 3.1% and 3.9%. The issuer received proceeds totaling $993 from the issuance, net of financing costs. The 2017 Senior Notes are fully and unconditionally guaranteed on an unsubordinated, unsecured basis by Eaton and certain of its direct and indirect subsidiaries. The 2017 Senior Notes contain customary optional redemption and par call provisions. The 2017 Senior Notes also contain a provision which upon a change of control requires the Company to make an offer to purchase all or any part of the 2017 Senior Notes at a purchase price of 101% of the principal amount plus accrued and unpaid interest. The capitalized deferred financing fees are amortized in Interest expense-net over the respective terms of the 2017 Senior Notes. The 2017 Senior Notes are subject to customary non-financial covenants.

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

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

2019	$	339
2020	241
2021	302
2022	1,701
2023	301

Interest paid on debt follows:

2018	$	313
2017	293
2016	266

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Commitments and Contingencies

12 Months Ended

Dec. 31, 2018

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

COMMITMENTS AND CONTINGENCIES

Legal Contingencies

Eaton is subject to a broad range of claims, administrative and legal proceedings such as lawsuits that relate to contractual allegations, tax audits, patent infringement, personal injuries, antitrust matters and employment-related matters. Eaton is also subject to asbestos claims from historic products which may have contained asbestos. 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. During the fourth quarter of 2016, the Company was able to resolve several insurance matters. In total, the income from insurance matters was $68.

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 opined, among other things, that the value contributed to the Trust for a release of the guaranty was below reasonably equivalent value, and that an inability of Pneumo to satisfy future liabilities could result in plaintiffs suing Pepsi under various theories. Cooper submitted various expert reports and, among other things, Cooper’s experts opined that Pepsi had 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. On July 11, 2018, the arbitration panel made certain findings and concluded that the value contributed to the Trust did not constitute reasonably equivalent value, but ordered the parties to recalculate the amount that should have been contributed to the Trust as of the date of the 2011 transaction. Based on the findings made by the panel and the recalculation ordered by the panel, Cooper believed that no additional amount should be contributed. Pepsi argued that an additional $347 should be contributed. Cooper and its expert disagreed with Pepsi’s argument and believed that Pepsi’s recalculation was flawed and failed to comply with the instructions of the panel. On August 23, 2018, the panel issued its final award and ordered Cooper to pay $293 to Pneumo Abex. On August 30, 2018, Pepsi sought to confirm the award in Texas state court, which Cooper opposed on October 9, 2018. Cooper further requested that the court vacate the award on various grounds, including that Cooper was prejudiced by the conduct of the proceedings, the panel exceeded its powers, and because the panel denied Cooper a full and fair opportunity to present certain evidence. The court confirmed the award at the confirmation hearing, which was held on October 12, 2018. On November 2, 2018, the Company appealed. On November 28, 2018, the Company paid $297, the full judgment plus accrued post-judgment interest, to Pneumo Abex and preserved its rights, including to pursue the appeal, which is pending.

Environmental Contingencies

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

Eaton is involved in remedial response and voluntary environmental remediation at a number of sites, including certain of its currently-owned or formerly-owned plants. The Company has also been named a potentially responsible party under the United States federal Superfund law, or the state equivalents thereof, at a number of disposal sites. The Company became involved in these sites as a result of government action or in connection with business acquisitions. At the end of 2018, the Company was involved with a total of 113 sites worldwide, including the Superfund sites mentioned above, with none of these sites being individually significant to the Company.

Remediation activities, generally involving soil and/or groundwater contamination, include pre-cleanup activities such as fact finding and investigation, risk assessment, feasibility study, design and action planning, performance (where actions may range from monitoring, to removal of contaminants, to installation of longer-term remediation systems), and operation and maintenance of a remediation system. The extent of expected remediation activities and costs varies by site. A number of factors affect the cost of environmental remediation, including the number of parties involved at a particular site, the determination of the extent of contamination, the length of time the remediation may require, the complexity of environmental regulations, and the continuing advancement of remediation technology. Taking these factors into account, Eaton has estimated the costs of remediation, which will be paid over a period of years. The Company accrues an amount on an undiscounted basis, consistent with the estimates of these costs, when it is probable that a liability has been incurred. Actual results may differ from these estimates. At December 31, 2018 and 2017, the Company had an accrual totaling $116 and $120, respectively, for these costs.

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

Warranty Accruals

Product warranty accruals are established at the time the related sale is recognized through a charge to Cost of products sold. Warranty accrual estimates are based primarily on historical warranty claim experience and specific customer contracts. Provisions for warranty accruals are comprised of basic warranties for products sold, as well as accruals for product recalls and other events when they are known and estimable. A summary of the current and long-term warranty accruals follows:

	2018			2017			2016
Balance at January 1	$	188		$	180		$	195
Provision	139			163			117
Settled	(145		)	(156		)	(130		)
Other	(6		)	1			(2		)
Balance at December 31	$	176		$	188		$	180

Lease Commitments

Eaton leases certain real properties and equipment. A summary of minimum rental commitments at December 31, 2018 under noncancelable operating leases, which expire at various dates and in most cases contain renewal options, for each of the next five years and thereafter in the aggregate, follow:

2019	$	165
2020	133
2021	106
2022	75
2023	53
Thereafter	110
Total noncancelable lease commitments	$	642

A summary of rental expense follows:

2018	$	232
2017	222
2016	220

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Retirement Benefits Plans

12 Months Ended

Dec. 31, 2018

Retirement Benefits [Abstract]

Retirement Benefit Plans

RETIREMENT BENEFITS PLANS

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

Obligations and Funded Status

	United States pension liabilities						Non-United States pension liabilities						Other postretirement liabilities
	2018			2017			2018			2017			2018			2017
Funded status
Fair value of plan assets	$	3,068		$	3,585		$	1,560		$	1,727		$	37		$	55
Benefit obligations	(3,633		)	(3,961		)	(2,285		)	(2,399		)	(378		)	(448		)
Funded status	$	(565	)	$	(376	)	$	(725	)	$	(672	)	$	(341	)	$	(393	)
Amounts recognized in the Consolidated    Balance Sheets
Non-current assets	$	—		$	82		$	58		$	136		$	—		$	—
Current liabilities	(20		)	(15		)	(24		)	(25		)	(20		)	(31		)
Non-current liabilities	(545		)	(443		)	(759		)	(783		)	(321		)	(362		)
Total	$	(565	)	$	(376	)	$	(725	)	$	(672	)	$	(341	)	$	(393	)
Amounts recognized in Accumulated other    comprehensive loss (pretax)
Net actuarial (gain) loss	$	1,153		$	1,059		$	683		$	596		$	(20	)	$	19
Prior service cost (credit)	7			4			27			8			(32		)	(46		)
Total	$	1,160		$	1,063		$	710		$	604		$	(52	)	$	(27	)

Change in Benefit Obligations

	United States pension liabilities						Non-United States pension liabilities						Other postretirement liabilities
	2018			2017			2018			2017			2018			2017
Balance at January 1	$	3,961		$	3,771		$	2,399		$	2,314		$	448		$	473
Service cost	100			96			63			71			2			3
Interest cost	122			123			52			55			13			14
Actuarial (gain) loss	(272		)	271			(16		)	(148		)	(39		)	2
Gross benefits paid	(282		)	(301		)	(112		)	(97		)	(67		)	(74		)
Currency translation	—			—			(124		)	223			(4		)	3
Plan amendments	4			1			21			—			—			—
Other	—			—			2			(19		)	25			27
Balance at December 31	$	3,633		$	3,961		$	2,285		$	2,399		$	378		$	448
Accumulated benefit obligation	$	3,506		$	3,802		$	2,175		$	2,283

Change in Plan Assets

	United States pension liabilities						Non-United States pension liabilities						Other postretirement liabilities
	2018			2017			2018			2017			2018			2017
Balance at January 1	$	3,585		$	2,969		$	1,727		$	1,478		$	55		$	74
Actual return on plan assets	(252		)	543			(72		)	131			—			8
Employer contributions	17			374			109			99			25			20
Gross benefits paid	(282		)	(301		)	(112		)	(97		)	(67		)	(74		)
Currency translation	—			—			(93		)	135			—			—
Other	—			—			1			(19		)	24			27
Balance at December 31	$	3,068		$	3,585		$	1,560		$	1,727		$	37		$	55

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

	United States pension liabilities				Non-United States pension liabilities
	2018		2017		2018		2017
Projected benefit obligation	$	3,633	$	3,540	$	905	$	966
Accumulated benefit obligation	3,506		3,380		853		911
Fair value of plan assets	3,068		3,081		158		175

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

	United States pension liabilities						Non-United States pension liabilities						Other postretirement liabilities
	2018			2017			2018			2017			2018			2017
Balance at January 1	$	1,063		$	1,235		$	604		$	779		$	(27	)	$	(39	)
Prior service cost arising during the year	4			1			21			—			—			—
Net loss (gain) arising during the year	233			(28		)	161			(185		)	(36		)	(2		)
Currency translation	—			—			(35		)	66			(2		)	1
Less amounts included in expense during the year	(140		)	(145		)	(41		)	(56		)	13			13
Net change for the year	97			(172		)	106			(175		)	(25		)	12
Balance at December 31	$	1,160		$	1,063		$	710		$	604		$	(52	)	$	(27	)

Benefits Expense

	United States pension benefit expense									Non-United States pension benefit expense									Other postretirement benefits expense
	2018			2017			2016			2018			2017			2016			2018			2017			2016
Service cost	$	100		$	96		$	111		$	63		$	71		$	63		$	2		$	3		$	4
Interest cost	122			123			125			52			55			62			13			14			17
Expected return on plan assets	(253		)	(244		)	(250		)	(105		)	(94		)	(92		)	(3		)	(4		)	(6		)
Amortization	94			83			92			39			51			33			(13		)	(13		)	(9		)
	63			58			78			49			83			66			(1		)	—			6
Settlements and special termination benefits	46			62			81			2			5			3			—			—			1
Total expense	$	109		$	120		$	159		$	51		$	88		$	69		$	(1	)	$	—		$	7

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

The estimated pretax net amounts that will be recognized from Accumulated other comprehensive loss into net periodic benefit cost in 2019 follow:

	United States pension liabilities		Non-United States pension liabilities		Other postretirement liabilities
Actuarial loss	$	113	$	36	$	—
Prior service cost (credit)	1		3		(14		)
Total	$	114	$	39	$	(14	)

Retirement Benefits Plans Assumptions

For purposes of determining liabilities related to pension plans and other postretirement benefits plans in the United States, in 2016 and 2017, the Company used 2014 mortality tables and generational improvement scales that are based on MP-2016 and MP-2017, respectively. In 2018, for the majority of its plans in the United States, the Company updated its mortality assumption to use tables that are based on the Company's own experience and a generational improvement scale that is based on MP-2018.

To estimate the service and interest cost components of net periodic benefit cost for the vast majority of its defined benefits pension and other postretirement benefits plans, the Company used a spot rate approach by applying the specific spot rates along the yield curve used to measure the benefit obligation at the beginning of the period to the relevant projected cash flows.

Pension Plans

	United States pension plans						Non-United States pension plans
	2018		2017		2016		2018		2017		2016
Assumptions used to determine benefit obligation at year-end
Discount rate	4.28	%	3.64	%	4.12	%	2.83	%	2.62	%	2.63	%
Rate of compensation increase	3.14	%	3.15	%	3.15	%	3.10	%	3.11	%	3.13	%
Assumptions used to determine expense
Discount rate used to determine benefit obligation	3.64	%	4.12	%	4.22	%	2.62	%	2.63	%	3.46	%
Discount rate used to determine service cost	3.78	%	4.31	%	4.35	%	3.54	%	3.38	%	4.13	%
Discount rate used to determine interest cost	3.19	%	3.40	%	3.42	%	2.31	%	2.34	%	3.07	%
Expected long-term return on plan assets	7.52	%	7.90	%	8.50	%	6.40	%	6.30	%	6.62	%
Rate of compensation increase	3.15	%	3.15	%	3.18	%	3.11	%	3.13	%	3.12	%

The expected long-term rate of return on pension assets was determined for each country and reflects long-term historical data taking into account each plan's target asset allocation. The expected long-term rates of return on pension assets for United States pension plans and Non-United States pension plans for 2019 are 7.25% and 6.42%, respectively. The discount rates were determined using appropriate bond data for each country.

Other Postretirement Benefits Plans

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

	Other postretirement benefits plans
	2018		2017		2016
Assumptions used to determine benefit obligation at year-end
Discount rate	4.23	%	3.55	%	3.96	%
Health care cost trend rate assumed for next year	7.10	%	8.25	%	7.35	%
Ultimate health care cost trend rate	4.75	%	4.75	%	4.75	%
Year ultimate health care cost trend rate is achieved	2028		2027		2026
Assumptions used to determine expense
Discount rate used to determine benefit obligation	3.55	%	3.96	%	4.04	%
Discount rate used to determine service cost	3.62	%	4.11	%	4.26	%
Discount rate used to determine interest cost	3.04	%	3.18	%	3.12	%
Initial health care cost trend rate	8.25	%	7.35	%	7.10	%
Ultimate health care cost trend rate	4.75	%	4.75	%	4.75	%
Year ultimate health care cost trend rate is achieved	2027		2026		2025

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

	1% increase		1% decrease
Effect on total service and interest cost	$	1	$	—
Effect on other postretirement liabilities	11		(10		)

Employer Contributions to Retirement Benefits Plans

Contributions to pension plans that Eaton expects to make in 2019, and made in 2018, 2017 and 2016, follow:

	2019		2018		2017		2016
United States plans	$	20	$	17	$	374	$	160
Non-United States plans	96		109		99		102
Total contributions	$	116	$	126	$	473	$	262

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

	Estimated United States pension payments		Estimated non-United States pension payments		Estimated other postretirement benefit payments
					Gross		Medicare prescription drug subsidy
2019	$	299	$	86	$	40	$	(2	)
2020	291		88		36		(2		)
2021	296		90		32		(1		)
2022	297		94		33		—
2023	294		98		30		—
2024 - 2028	1,440		539		126		(2		)

Pension Plan Assets

Investment policies and strategies are developed on a country specific basis. The United States plans, representing 66% of worldwide pension assets, and the United Kingdom plans representing 27% of worldwide pension assets, are invested primarily for growth, as the majority of the assets are in plans with active participants and ongoing accruals. In general, the plans have their primary allocation to diversified global equities, primarily through index funds in the form of common collective and other trusts. The United States plans' target allocation is 25% United States equities, 25% non-United States equities, 8% real estate (primarily equity of real estate investment trusts), 37% debt securities and 5% other, including hedge funds, private equity and cash equivalents. The United Kingdom plans' target asset allocations are 62% equities and the remainder in debt securities, cash equivalents and real estate investments. The equity risk for the plans is managed through broad geographic diversification and diversification across industries and levels of market capitalization. The majority of debt allocations for these plans are longer duration government and corporate debt. The United States, United Kingdom and Canada pension plans are authorized to use derivatives to achieve more economically desired market exposures and to use futures, swaps and options to gain or hedge exposures.

Fair Value Measurements

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

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

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

Level 3 - Unobservable prices or inputs.

Certain investments that are measured at fair value using the net asset value per share practical expedient have not been categorized in the fair value hierarchy and are being presented in the tables to permit a reconciliation to total plan assets.

Pension Plans

A summary of the fair value of pension plan assets at December 31, 2018 and 2017, follows:

	Total		Quoted prices in active markets for identical assets (Level 1)		Other observable inputs (Level 2)		Unobservable inputs (Level 3)1
2018
Common collective trusts
Non-United States equity and global equities	$	612	$	—	$	612	$	—
United States equity	50		—		50		—
Fixed income	483		—		483		—
Fixed income securities	721		—		721		—
United States treasuries	261		261		—		—
Bank loans	107		—		107		—
Real estate	202		181		—		21
Equity securities	51		51		—		—
Cash equivalents	152		104		48		—
Exchange traded funds	60		60		—		—
Other	90		—		15		75
Common collective and other trusts measured at net asset value	1,834
Money market funds measured at net asset value	5
Total pension plan assets	$	4,628	$	657	$	2,036	$	96

¹These pension plan assets include private real estate, private credit and private equity funds that generally have redemption notice periods of six months or longer, and are not eligible for redemption until the underlying assets are liquidated or distributed. The Company has unfunded commitments to these funds of approximately$180atDecember 31, 2018, which will be satisfied by a reallocation of pension plan assets.

	Total		Quoted prices in active markets for identical assets (Level 1)		Other observable inputs (Level 2)		Unobservable inputs (Level 3)1
2017
Common collective trusts
Non-United States equity and global equities	$	741	$	—	$	741	$	—
United States equity	86		—		86		—
Fixed income	478		—		478		—
Fixed income securities	709		—		709		—
United States treasuries	67		67		—		—
Bank loans	161		—		161		—
Real estate	239		220		—		19
Equity securities	139		139		—		—
Cash equivalents	86		51		35		—
Exchange traded funds	224		224		—		—
Other	81		—		8		73
Common collective and other trusts measured at net asset value	2,225
Hedge funds measured at net asset value	67
Money market funds measured at net asset value	9
Total pension plan assets	$	5,312	$	701	$	2,218	$	92

¹These pension plan assets include private real estate and private equity funds that generally have redemption notice periods of six months or longer, and are not eligible for redemption until the underlying assets are liquidated or distributed. The Company has unfunded commitments to these funds of approximately$20atDecember 31, 2017, which will be satisfied by a reallocation of pension plan assets.

The fair value measurement of plan assets using significant unobservable inputs (Level 3) changed during 2017 and 2018 due to the following:

	Real estate			Other			Total
Balance at December 31, 2016	$	6		$	95		$	101
Actual return on plan assets:
Gains (losses) relating to assets still held at year-end	1			(5		)	(4		)
Purchases, sales, settlements - net	12			(17		)	(5		)
Transfers into or out of Level 3	—			—			—
Balance at December 31, 2017	19			73			92
Actual return on plan assets:
Gains (losses) relating to assets still held at year-end	(1		)	—			(1		)
Purchases, sales, settlements - net	3			2			5
Transfers into or out of Level 3	—			—			—
Balance at December 31, 2018	$	21		$	75		$	96

Other Postretirement Benefits Plans

A summary of the fair value of other postretirement benefits plan assets at December 31, 2018 and 2017, follows:

	Total		Quoted prices in active markets for identical assets (Level 1)		Other observable inputs (Level 2)		Unobservable inputs (Level 3)
2018
Cash equivalents	$	6	$	6	$	—	$	—
Common collective and other trusts measured at net asset value	31
Total other postretirement benefits plan assets	$	37	$	6	$	—	$	—

	Total		Quoted prices in active markets for identical assets (Level 1)		Other observable inputs (Level 2)		Unobservable inputs (Level 3)
2017
Cash equivalents	$	7	$	7	$	—	$	—
Common collective and other trusts measured at net asset value	48
Total other postretirement benefits plan assets	$	55	$	7	$	—	$	—

Valuation Methodologies

Following is a description of the valuation methodologies used for pension and other postretirement benefits plan assets measured at fair value. There have been no changes in the methodologies used at December 31, 2018 and 2017.

Common collective and other trusts - Valued at the net unit value of units held by the trust at year end. The unit value is determined by the total value of fund assets divided by the total number of units of the fund owned. The equity investments in collective trusts are predominantly in index funds for which the underlying securities are actively traded in public markets based upon readily measurable prices. The investments in other trusts are predominantly in exchange traded funds for which the underlying securities are actively traded in public markets based upon readily measurable prices. Common collective and other trusts measured at fair value using the net asset value per share practical expedient have not been categorized in the fair value hierarchy and are being presented in the tables above to permit a reconciliation of the fair value hierarchy to the total plan assets.

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

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

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

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

Real estate - Consists of direct investments in the stock of publicly traded companies and investments in pooled funds that invest directly in real estate. The publicly traded companies are valued based on the closing price reported in an active market on which the individual securities are traded and as such are classified as Level 1. The pooled funds rely on appraisal based valuations and as such are classified as Level 3.

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

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

Hedge funds - Consists of direct investments in hedge funds through limited partnership interests. Net asset values are based on the estimated fair value of the ownership interest in the investment as determined by the General Partner. The majority of the holdings of the hedge funds are in equity securities traded on public exchanges. The investment terms of the hedge funds allow capital to be redeemed quarterly given prior notice with certain limitations. Hedge funds measured at fair value using the net asset value per share practical expedient have not been categorized in the fair value hierarchy and are being presented in the tables above to permit a reconciliation of the fair value hierarchy to the total plan assets.

Money market funds - Money market funds measured at fair value using the net asset value per share practical expedient have not been categorized in the fair value hierarchy and are being presented in the tables above to permit a reconciliation of the fair value hierarchy to the total plan assets.

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

For additional information regarding fair value measurements, see Note 13.

Defined Contribution Plans

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

2018	$	124
2017	114
2016	72

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Income Taxes

12 Months Ended

Dec. 31, 2018

Income Tax Disclosure [Abstract]

Income Taxes

INCOME TAXES

Eaton Corporation plc is domiciled in Ireland. Income (loss) before income taxes and income tax (benefit) expense are summarized below based on the geographic location of the operation to which such earnings and income taxes are attributable.

	Income (loss) before income taxes
	2018			2017			2016
Ireland	$	(365	)	$	(1,090	)	$	(923	)
Foreign	2,789			4,458			3,041
Total income before income taxes	$	2,424		$	3,368		$	2,118

	Income tax expense (benefit)
	2018			2017			2016
Current
Ireland	$	47		$	1		$	2
Foreign
United States	115			123			93
Non-United States	255			234			209
Total current income tax expense	417			358			304
Deferred
Ireland	6			—			2
Foreign
United States	(122		)	82			(77		)
Non-United States	(23		)	(58		)	(30		)
Total deferred income tax expense (benefit)	(139		)	24			(105		)
Total income tax expense	$	278		$	382		$	199

Reconciliations of income taxes from the Ireland national statutory rate of 25% to the consolidated effective income tax rate follow:

	2018		2017		2016
Income taxes at the applicable statutory rate	25.0	%	25.0	%	25.0	%
Ireland operations
Ireland tax on trading income	(2.0	)%	—	%	(0.3	)%
Nondeductible interest expense	7.8	%	8.2	%	11.5	%
Ireland Other - net	0.1	%	—	%	—	%
Foreign operations
United States operations (earnings taxed at other than     the applicable statutory rate)	0.2	%	1.7	%	0.1	%
U.S. federal tax rate change	—	%	(7.5	)%	—	%
U.S. tax on foreign earnings	—	%	4.8	%	—	%
U.S. foreign tax credit	(0.2	)%	(3.9	)%	0.6	%
Credit for research activities	(0.8	)%	(0.5	)%	(0.8	)%
Tax on foreign currency loss	(1.6	)%	—	%	—	%
U.S. Other - net	2.4	%	3.2	%	2.5	%
Non-U.S. operations (earnings taxed at other than    the applicable statutory tax rate)	(19.8	)%	(22.9	)%	(26.8	)%
Non-U.S. operations - other items	0.7	%	0.4	%	0.9	%
Worldwide operations
Adjustments to tax liabilities	1.1	%	(1.8	)%	(2.5	)%
Adjustments to valuation allowances	(1.4	)%	4.6	%	(0.8	)%
Effective income tax expense rate	11.5	%	11.3	%	9.4	%

During 2018, income tax expense of $278 was recognized (an effective tax rate of 11.5%) compared to income tax expense of $382 for 2017 (an effective tax rate of 11.3%) and income tax expense of $199 for 2016 (an effective tax rate of 9.4%). The 2018 effective tax rate includes a tax benefit of $69 on the arbitration decision expense discussed in Note 9. The 2017 effective tax rate includes tax expense of $234 on the gain related to the sale of a business discussed in Note 2 and a tax benefit of $62 related to the U.S. Tax Cuts and Jobs Act (TCJA) which is discussed in further detail below. Excluding the one-time impacts of the 2018 arbitration decision, the 2017 sale of business, and the 2017 TCJA, the effective tax rate for 2018 was 12.8% compared to 9.2% for 2017. The increase in the tax rate from 2017 to 2018 was due to greater levels of income in higher tax jurisdictions and an increase in tax contingencies offset by net decreases of related valuation allowances. The decrease from 9.4% for 2016 compared to 9.2% for 2017 was due to the resolution of tax contingencies in various tax jurisdictions and the excess tax benefits recognized for employee share-based payments pursuant to the adoption of Accounting Standards Update 2016-09, Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting.

The TCJA was enacted on December 22, 2017, which reduced the U.S. federal corporate tax rate from 35% to 21% and required a one-time transition tax on certain unremitted earnings of non-U.S. subsidiaries owned directly or indirectly by U.S. subsidiaries of the Company. In December 2017, the Company recorded a provisional tax benefit amount of $79 for the impact of the tax rate change on deferred tax balances and a provisional tax expense of $17 for the one-time transition tax, for a net tax benefit of $62. During 2018, the Company finalized its accounting for the 2017 enactment of the TCJA and recorded an adjustment of $17 tax expense, primarily related to the one-time transition tax, resulting in a final net tax benefit of $45.

No provision has been made for income taxes on undistributed earnings of foreign subsidiaries of approximately $25.5 billion at December 31, 2018, since it is the Company's intention to indefinitely reinvest undistributed earnings of its foreign subsidiaries. It is not practicable to estimate the additional income taxes and applicable withholding taxes that would be payable on the remittance of such undistributed earnings.

The Company expects to deploy capital to those markets which offer particularly attractive growth opportunities. The cash that is permanently reinvested is typically used to expand operations either organically or through acquisitions. In addition, the Company expects that minimal to no Irish tax would apply to dividends paid to the Irish parent due to the impact of the Irish foreign tax credit system. The Company's public dividends and share repurchases are funded primarily from Non-U.S. operations.

Worldwide income tax payments, net of tax refunds, follow:

2018	$	371
2017	288
2016	272

Deferred Income Tax Assets and Liabilities

Components of noncurrent deferred income taxes follow:

	2018			2017
	Noncurrent assets and liabilities			Noncurrent assets and liabilities
Accruals and other adjustments
Employee benefits	$	481		$	430
Depreciation and amortization	(1,198		)	(1,324		)
Other accruals and adjustments	434			380
Ireland income tax loss carryforwards	1			1
Foreign income tax loss carryforwards	1,915			1,962
Foreign income tax credit carryforwards	396			404
Valuation allowance for income tax loss and income tax    credit carryforwards	(2,032		)	(1,992		)
Other valuation allowances	(53		)	(146		)
Total deferred income taxes	$	(56	)	$	(285	)

At December 31, 2018, Eaton Corporation plc and certain Irish subsidiaries had tax loss carryforwards that are available to reduce future taxable income and tax liabilities. These carryforwards and their respective expiration dates are summarized below:

	2019 through 2023		2024 through 2028		2029 through 2033		2034 through 2043		Not subject to expiration		Valuation allowance
Ireland income tax loss carryforwards	$	—	$	—	$	—	$	—	$	8	$	—
Ireland deferred income tax assets for income tax loss carryforwards	—		—		—		—		1		(1		)

At December 31, 2018, the Company's foreign subsidiaries, including all U.S. and non-U.S. subsidiaries, had income tax loss carryforwards and income tax credit carryforwards that are available to reduce future taxable income or tax liabilities. These carryforwards and their respective expiration dates are summarized below:

	2019 through 2023		2024 through 2028		2029 through 2033		2034 through 2043		Not subject to expiration		Valuation allowance
Foreign income tax loss carryforwards	$	929	$	130	$	7,433	$	788	$	3,450	$	—
Foreign deferred income tax assets for income tax loss carryforwards	112		41		686		225		892		(1,790		)
Foreign deferred income tax assets for income tax loss carryforwards after ASU 2013-11	99		36		672		216		892		(1,790		)
Foreign income tax credit carryforwards	116		188		104		120		31		(241		)
Foreign income tax credit carryforwards after ASU 2013-11	80		178		32		75		31		(241		)

Recoverability of Deferred Income Tax Assets

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

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

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

Adoption of Accounting Policy

In January 2018 the FASB issued ASU 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from accumulated other comprehensive income (AOCI), which gives companies the option to reclassify to retained earnings certain income tax effects resulting from the TCJA related to items in AOCI that the FASB refers to as having been stranded in AOCI.

The new guidance may be applied retrospectively to each period in which the effect of the TCJA is recognized, or in the period of adoption. Companies must adopt this guidance for years beginning after December 15, 2018 and interim periods within those years. Early adoption is also permitted for periods for which financial statements have not yet been issued or made available for issuance. Eaton elected to early adopt ASU 2018-02 in the fourth quarter of 2018. Eaton elected not to reclassify any income tax effects resulting from the TCJA from accumulated other comprehensive loss to retained earnings. The Company’s policy is to release income tax effects from AOCI when individual units of account are sold, terminated, or extinguished.

Unrecognized Income Tax Benefits

A summary of gross unrecognized income tax benefits follows:

	2018			2017			2016
Balance at January 1	$	735		$	629		$	584
Increases and decreases as a result of positions taken during prior years
Transfers from valuation allowances	2			—			—
Other increases, including currency translation	164			10			21
Other decreases, including currency translation	(35		)	(30		)	(24		)
Increases as a result of positions taken during the current year	69			162			90
Decreases relating to settlements with tax authorities	(3		)	(10		)	(19		)
Decreases as a result of a lapse of the applicable statute of limitations	(19		)	(26		)	(23		)
Balance at December 31	$	913		$	735		$	629

Eaton recognizes an income tax benefit from an uncertain tax position only if it is more likely than not that the benefit would be sustained upon examination by taxing authorities, based on the technical merits of the position. The Company evaluates and adjusts the amount of unrecognized income tax benefits based on changes in facts and circumstances. The Company does not enter into any of the United States Internal Revenue Service (IRS) Listed Transactions as set forth in Treasury Regulation 1.6011-4.

If all unrecognized income tax benefits were recognized, the net impact on the provision for income tax expense would be $599, which includes all impacts of the TCJA and interaction with deferred tax netting pursuant to ASU 2013-11. The increase in gross unrecognized income tax benefits for positions taken in prior years was primarily offset by net decreases in related valuation allowances.

As of December 31, 2018 and 2017, Eaton had accrued approximately $74 and $80, respectively, for the payment of worldwide interest and penalties, which are not included in the table of unrecognized income tax benefits above. Eaton recognizes interest and penalties related to unrecognized income tax benefits in the provision for income tax expense.

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

Eaton or its subsidiaries file income tax returns in Ireland and many countries around the world. With only a few exceptions, Irish and non-United States subsidiaries of Eaton are no longer subject to examinations for years before 2007.

The United States Internal Revenue Service (“IRS”) has completed its examination of the consolidated income tax returns of the Company’s United States subsidiaries (“Eaton US”) for 2005 through 2010 and has issued Statutory Notices of Deficiency (Notices) as discussed below. The statute of limitations on these tax years remains open until the matters are resolved. The IRS has also completed its examination of the consolidated income tax returns of Eaton US for 2011 through 2013 and has issued proposed adjustments as discussed below. The statute of limitations on these tax years remains open until June 30, 2020. The IRS is currently examining tax years 2014 through 2016. The statute of limitations for tax years 2014 through 2016 is open until September 30, 2020. Tax year 2017 is still subject to examination by the IRS.

Eaton US is also under examination for the income tax filings in various states and localities of the United States. Income tax returns of states and localities within the United States will be reopened to the extent of United States federal income tax adjustments, if any, going back to 2005 when those audit years are finalized. Some states and localities might not limit their assessment to the United States federal adjustments, and may require the opening of the entire tax year.

In 2011, the IRS issued a Notice for Eaton US for the 2005 and 2006 tax years (the 2011 Notice). The 2011 Notice proposed assessments of $75 in additional taxes plus $52 in penalties related primarily to transfer pricing adjustments for products manufactured in the Company's facilities in Puerto Rico and the Dominican Republic and sold to affiliated companies located in the United States. Eaton US has set its transfer prices for products sold between these affiliates at the same prices that Eaton US sells such products to third parties as required by two successive Advance Pricing Agreements (APAs) Eaton US entered into with the IRS that governed the 2005-2010 tax years. Eaton US has continued to apply the arms-length transfer pricing methodology for 2011 through the current reporting period. Immediately prior to the 2011 Notice being issued, the IRS sent a letter stating that it was retrospectively canceling the APAs. Eaton US contested the proposed assessments in United States Tax Court. The case involved both whether the APAs should be enforced and, if not, the appropriate transfer pricing methodology. On July 26, 2017, the United States Tax Court issued a ruling in which it agreed with Eaton US that the IRS must abide by the terms of the APAs for the tax years 2005-2006. The Tax Court’s ruling on the APAs did not have a material impact on Eaton’s consolidated financial statements.

In 2014, Eaton US received a Notice from the IRS for the 2007 through 2010 tax years (the 2014 Notice) proposing assessments of $190 in additional taxes plus $72 in penalties, net of agreed credits and deductions, which the Company has also contested in Tax Court. The proposed assessments pertain primarily to the same transfer pricing issues and APA for which the Tax Court has issued its ruling during 2017 as noted above. The Company believes that the Tax Court’s ruling for tax years 2005-2006 will also be applicable to the 2007-2010 years. Following the issuance of the Tax Court’s ruling, Eaton and the IRS recognized that the ruling on the enforceability of the APAs did not address a secondary issue regarding the transfer pricing for a certain royalty paid from 2006-2010. Eaton US reported a consistent royalty rate for 2006-2010. The IRS has agreed to the royalty rate as reported by Eaton US in 2006. Although the IRS has not proposed an alternative rate, it has not agreed to apply the same royalty rate in the 2007-2010 years.

The 2014 Notice also includes a separate proposed assessment involving the recognition of income for several of Eaton US’s controlled foreign corporations. The Company believes that the proposed assessment is without merit and is contesting the matter in Tax Court. Eaton and the IRS have both moved for partial summary judgment on this issue. The Tax Court heard oral arguments on the motions in January 2018, following which the Court ordered further briefing, which was completed in March 2018. On February 25, 2019 the Tax Court granted the IRS’s motion for partial summary judgment and denied Eaton’s.  The Company intends to appeal the Tax Court’s decision to the United States Court of Appeals. The Company is analyzing the impact, if any, the Tax Court’s decision will have on its consolidated financial statements in 2019.

In 2018 the IRS completed its examination of the Eaton US tax years 2011 through 2013 and has proposed adjustments to certain transfer pricing tax positions, including adjustments similar to those proposed in the 2011 and 2014 Notices for products manufactured in the Company’s facilities in Puerto Rico and the Dominican Republic and sold to affiliated companies located in the United States. The IRS also proposed adjustments involving the recognition of income for several of Eaton US’s controlled foreign corporation, which is the same issue included in the 2014 Notice described above and subject to litigation in Tax Court. The Company intends to pursue its administrative appeals alternatives with respect to each of the IRS adjustments and believes that final resolution of the proposed adjustments will not have a material impact on its consolidated financial statements.

During 2010, the Company received a tax assessment, which included interest and penalties, in Brazil for the tax years 2005 through 2008 that relates to the amortization of certain goodwill generated from the acquisition of third-party businesses and corporate reorganizations. In 2018 the Company received an unfavorable result at the final tax administrative appeals level, resulting in an alleged tax deficiency of $32 plus $84 of interest and penalties (translated at the December 31, 2018 exchange rate). The Company plans to challenge the assessment in the judicial system, which is expected to take up to 10 years to resolve. During 2014, the Company received a tax assessment of $33 (translated at the December 31, 2018 exchange rate), plus interest and penalties, for the 2009 through 2012 tax years (primarily relating to the same issues concerning the 2005 through 2008 tax years), which the Company is also contesting and remains under review at the final tax administrative appeals level. The Company continues to believe that final resolution of both of the assessments will not have a material impact on its consolidated financial statements.

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Eaton Shareholders' Equity

12 Months Ended

Dec. 31, 2018

Equity [Abstract]

Eaton Shareholders' Equity

EATON SHAREHOLDERS' EQUITY

There are 750 million Eaton ordinary shares authorized ($0.01 par value per share), 423.6 million and 439.9 million of which were issued and outstanding at December 31, 2018 and 2017, respectively. Eaton's Memorandum and Articles of Association authorized 40 thousand deferred ordinary shares (€1.00 par value per share) and 10 thousand preferred A shares ($1.00 par value per share), all of which were issued and outstanding at December 31, 2018 and 2017, and 10 million serial preferred shares ($0.01 par value per share), none of which is outstanding at December 31, 2018 and 2017. At December 31, 2018, there were 12,846 holders of record of Eaton ordinary shares. Additionally, 18,972 current and former employees were shareholders through participation in the Eaton Savings Plan, Eaton Personal Investment Plan, or the Eaton Puerto Rico Retirement Savings Plan.

On October 22, 2013, Eaton's Board of Directors adopted a share repurchase program (the 2013 Program). Under the 2013 Program, the ordinary shares were expected to be repurchased over time, depending on market conditions, the market price of ordinary shares, capital levels, and other considerations. During 2016, 1.5 million ordinary shares were repurchased under the 2013 Program in the open market at a total cost of $82. On February 24, 2016, the Board of Directors approved a new share repurchase program for share repurchases up to $2,500 of ordinary shares (2016 Program). Under the 2016 Program, the ordinary shares were expected to be repurchased over time, depending on market conditions, the market price of ordinary shares, capital levels, and other considerations. During 2018, 2017 and 2016, 13.2 million, 11.5 million and 10.3 million shares, respectively, were purchased on the open market under the 2016 Program for a total cost of $1,002, $850 and $648, respectively. An additional 4.3 million shares were purchased on the open market in December 2018 outside of the 2016 Program for a total cost of $298.

Eaton has deferral plans that permit certain employees and directors to defer a portion of their compensation. A trust contains $8 and $11 of ordinary shares and marketable securities at December 31, 2018 and 2017, respectively, to fund a portion of these liabilities. The marketable securities were included in Other assets and the ordinary shares were included in Shareholders' equity at historical cost.

On February 27, 2019, Eaton's Board of Directors declared a quarterly dividend of $0.71 per ordinary share, an 8% increase over the dividend paid in the fourth quarter of 2018. The dividend is payable on March 22, 2019 to shareholders of record on March 9, 2019.

Comprehensive Income (Loss)

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

	2018						2017						2016
	Pre-tax			After-tax			Pre-tax			After-tax			Pre-tax			After-tax
Currency translation and related hedging instruments	$	(613	)	$	(609	)	$	800		$	807		$	(562	)	$	(570	)
Pensions and other postretirement benefits
Prior service credit (cost) arising during the year	(25		)	(20		)	(1		)	—			(2		)	(2		)
Net gain (loss) arising during the year	(358		)	(274		)	215			169			(247		)	(197		)
Currency translation	37			29			(67		)	(53		)	74			62
Other	—			5			—			(5		)	—			(2		)
Amortization of actuarial loss and prior service cost    reclassified to earnings	168			121			188			130			201			133
	(178		)	(139		)	335			241			26			(6		)
Cash flow hedges
Gain (loss) on derivatives designated as cash flow hedges	(8		)	(6		)	(24		)	(15		)	(21		)	(14		)
Changes in cash flow hedges reclassified to earnings	16			13			17			11			8			5
Cash flow hedges, net of reclassification adjustments	8			7			(7		)	(4		)	(13		)	(9		)
Other comprehensive income (loss) attributable to Eaton ordinary shareholders	$	(783	)	$	(741	)	$	1,128		$	1,044		$	(549	)	$	(585	)

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 income (loss) before     reclassifications	(609		)	(260		)	(6		)	(875		)
Amounts reclassified from Accumulated other    comprehensive loss (income)	—			121			13			134
Net current-period Other comprehensive    income (loss)	(609		)	(139		)	7			(741		)
Balance at December 31, 2018	$	(2,864	)	$	(1,278	)	$	(3	)	$	(4,145	)

The reclassifications out of Accumulated other comprehensive loss follow:

	December 31, 2018			Consolidated Statements of Income classification
Amortization of defined benefits pension and other    postretirement benefits items
Actuarial loss and prior service cost	$	(168	)	1
Tax benefit	47
Total, net of tax	(121		)
Gains and (losses) on cash flow hedges
Currency exchange contracts	(16		)	Cost of products sold
Tax benefit	3
Total, net of tax	(13		)
Total reclassifications for the period	$	(134	)

¹ These components of Accumulated other comprehensive loss are included in the computation of net periodic benefit cost. See Note 8 for additional information about defined benefits 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:

(Shares in millions)	2018		2017		2016
Net income attributable to Eaton ordinary shareholders	$	2,145	$	2,985	$	1,916
Weighted-average number of ordinary shares outstanding - diluted	436.9		447.0		456.5
Less dilutive effect of equity-based compensation	2.6		2.5		1.5
Weighted-average number of ordinary shares outstanding - basic	434.3		444.5		455.0
Net income per share attributable to Eaton ordinary shareholders
Diluted	$	4.91	$	6.68	$	4.20
Basic	4.93		6.71		4.21

In 2018, 2017, and 2016, 0.5 million, 0.4 million, and 1.7 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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Equity-Based Compensation

12 Months Ended

Dec. 31, 2018

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Equity-Based Compensation

EQUITY-BASED COMPENSATION

Eaton recognizes equity-based compensation expense based on the grant date fair value of the award. Awards with service conditions or both service and market conditions are expensed over the period during which an employee is required to provide service in exchange for the award. Awards with both service and performance conditions are expensed over the period an employee is required to provide service based on the number of units for which achievement of the performance objective is probable. The Company estimates forfeitures as part of recording equity-based compensation expense.

Restricted Stock Units and Awards

Restricted stock units (RSUs) and restricted stock awards (RSAs) have been issued to certain employees and directors. Participants awarded RSUs in 2016 do not receive dividends; therefore, the fair value is determined by reducing the closing market price of the Company’s ordinary shares on the date of grant by the present value of the estimated dividends had they been paid. The fair value of RSUs awarded in 2017 and 2018, and RSAs are determined based on the closing market price of the Company’s ordinary shares at the date of grant. The RSUs entitle the holder to receive one ordinary share for each RSU upon vesting, generally over three years. RSAs are issued and outstanding at the time of grant, but remain subject to forfeiture until vested, generally over three or four years. A summary of the RSU and RSA activity for 2018 follows:

(Restricted stock units and awards in millions)	Number of restricted stock units and awards		Weighted-average fair value per unit and award
Non-vested at January 1	2.4		$	62.24
Granted	0.7		81.83
Vested	(0.9	)	63.44
Forfeited	(0.1	)	68.94
Non-vested at December 31	2.1		$	68.56

Information related to RSUs and RSAs follows:

	2018		2017		2016
Pretax expense for RSUs and RSAs	$	59	$	66	$	65
After-tax expense for RSUs and RSAs	46		43		42
Fair value of vested RSUs and RSAs	71		73		71

As of December 31, 2018, total compensation expense not yet recognized related to non-vested RSUs and RSAs was $72, and the weighted-average period in which the expense is expected to be recognized is 2.4 years. Excess tax benefit for RSUs and RSAs totaled $3 and $2 for 2018 and 2017, respectively. There was no excess tax benefit for RSUs and RSAs in 2016.

Performance Share Units

In February 2018, 2017 and 2016, the Compensation and Organization Committee of the Board of Directors approved the grant of performance share units (PSUs) to certain employees that vest based on the satisfaction of a three-year service period and total shareholder return relative to that of a group of peers. Awards earned at the end of the three-year vesting period range from 0% to 200% of the targeted number of PSUs granted based on the ranking of total shareholder return of the Company, assuming reinvestment of all dividends, relative to a defined peer group of companies. Equity-based compensation expense for these PSUs is recognized over the period during which an employee is required to provide service in exchange for the award. Upon vesting, dividends that have accumulated during the vesting period are paid on earned awards.

The Company uses a Monte Carlo simulation to estimate the fair value of PSUs with market conditions. The principal assumptions utilized in valuing these PSUs include the expected stock price volatility (based on the most recent 3-year period as of the grant date) and the risk-free interest rate (an estimate based on the yield of United States Treasury zero coupon bonds with a 3-year maturity as of the grant date). A summary of the assumptions used in determining fair value of these PSUs follows:

	2018			2017			2016
Expected volatility	22		%	24		%	24		%
Risk-free interest rate	2.38		%	1.46		%	0.88		%
Weighted-average fair value of PSUs granted	$	100.86		$	80.07		$	76.41

A summary of these PSUs that vested follows:

(Performance share units in millions)	2018
Percent payout	116	%
Shares vested	0.5

A summary of the 2018 activity for these PSUs follows:

(Performance share units in millions)	Number of performance share units		Weighted-average fair value per unit
Non-vested at January 1	0.8		$	77.97
Granted1	0.3		100.86
Adjusted for performance results achieved2	0.1		76.41
Vested	(0.5	)	76.41
Forfeited	(0.1	)	85.92
Non-vested at December 31	0.6		$	89.95

¹ Performance shares granted assuming the Company will perform at target relative to peers.

² Adjustments for the number of shares vested under the 2016 awards at the end of the three-year performance period ended December 31, 2018, being higher than the target number of shares.

In February 2016, performance share units were granted to certain employees that entitles the holder to receive one ordinary share for each PSU that vest based on the satisfaction of a three-year service period and the achievement of certain performance metrics over that same period. Upon vesting, PSU holders receive dividends that accumulate during the vesting period. The fair value of these PSUs is determined based on the closing market price of the Company's ordinary shares at the date of grant. Equity-based compensation expense is recognized over the period an employee is required to provide service based on the number of PSUs for which achievement of the performance objectives is probable. A summary of the 2018 activity for these PSUs follows:

(Performance share units in millions)	Number of performance share units	Weighted-average fair value per unit
Non-vested at January 1	0.1	$	56.55
Granted	—	—
Vested	—	—
Forfeited	—	—
Non-vested at December 31	0.1	$	56.55

Information related to PSUs follows:

	2018		2017		2016
Pretax expense for PSUs	$	28	$	22	$	13
After-tax expense for PSUs	22		13		8

As of December 31, 2018, total compensation expense not yet recognized related to non-vested PSUs was $30 and the weighted average period in which the expense is to be recognized is 1.8 years. There was no excess tax benefit for PSUs in 2018, 2017 and 2016.

Stock Options

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

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

	2018			2017			2016
Expected volatility	26		%	27		%	27		%
Expected option life in years	6.7			6.6			5.5
Expected dividend yield	3.0		%	2.8		%	2.5		%
Risk-free interest rate	2.6 to 2.9%			1.8 to 2.1%			1.2 to 1.5%
Weighted-average fair value of stock options granted	$	16.93		$	15.11		$	11.80

A summary of stock option activity follows:

(Options in millions)	Weighted-average exercise price per option		Options		Weighted-average remaining contractual life in years	Aggregate intrinsic value
Outstanding at January 1, 2018	$	62.43	4.6
Granted	81.76		0.6
Exercised	53.26		(0.6	)
Forfeited and canceled	—		—
Outstanding at December 31, 2018	$	65.96	4.6		6.2	$	27.4
Exercisable at December 31, 2018	$	63.39	3.2		5.2	$	22.4
Reserved for future grants at December 31, 2018			13.2

The aggregate intrinsic value in the table above represents the total excess of the $68.66 closing price of Eaton ordinary shares on the last trading day of 2018 over the exercise price of the stock option, multiplied by the related number of options outstanding and exercisable. The aggregate intrinsic value is not recognized for financial accounting purposes and the value changes based on the daily changes in the fair market value of the Company's ordinary shares.

Information related to stock options follows:

	2018		2017		2016
Pretax expense for stock options	$	11	$	11	$	14
After-tax expense for stock options	9		8		9
Proceeds from stock options exercised	29		66		74
Income tax benefit related to stock options exercised
Tax benefit classified in operating activities in the Consolidated    Statements of Cash Flows	3		13		5
Excess tax benefit classified in financing activities in the    Consolidated Statements of Cash Flows	—		—		1
Intrinsic value of stock options exercised	17		41		42
Total fair value of stock options vested	$	11	$	11	$	14
Stock options exercised, in millions of options	0.6		1.5		1.9

As of December 31, 2018, total compensation expense not yet recognized related to non-vested stock options was $10, and the weighted-average period in which the expense is expected to be recognized is 1.8 years

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Fair Value Measurements

12 Months Ended

Dec. 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		Quoted prices in active markets for identical assets (Level 1)		Other observable inputs (Level 2)		Unobservable inputs (Level 3)
2018
Cash	$	283	$	283	$	—	$	—
Short-term investments	157		157		—		—
Net derivative contracts	14		—		14		—
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 $7,107 and fair value of $7,061 at December 31, 2018 compared to $7,745 and $8,048, respectively, at December 31, 2017. The fair value of Eaton's debt instruments was estimated using prevailing market interest rates on debt with similar creditworthiness, terms and maturities and is considered a Level 2 fair value measurement.

As discussed in Note 2, on July 31, 2017 Eaton sold a 50% interest in its heavy-duty and medium-duty commercial vehicle automated transmission business to Cummins, Inc. Eaton's remaining 50% interest was remeasured to a fair value of $600 on July 31, 2017 using a discounted cash flow model which is considered a Level 3 fair value measurement. The model includes estimates of future cash flows, future growth rates, terminal value amounts, and the applicable weighted-average cost of capital used to discount those estimated cash flows. Eaton accounts for its investment on the equity method of accounting.

Short-Term Investments

Eaton invests excess cash generated from operations in short-term marketable investments. A summary of the carrying value, which approximates the fair value due to the short-term maturities of these investments, follows:

	2018		2017
Time deposits and certificates of deposit with banks	$	111	$	435
Money market investments	46		99
Total short-term investments	$	157	$	534

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Derivative Financial Instruments and Hedging Activities

12 Months Ended

Dec. 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 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 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. During 2018 and 2017, Eaton recognized gains of $1 and $2, respectively, associated with these commodity hedge contracts. 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 $88 at December 31, 2017 and the notes were repaid in 2018, and designated on a pre-tax basis was $623 and $652 at December 31, 2018 and 2017, respectively. See Note 7 for additional information about debt.

Interest Rate Risk

Eaton has entered into fixed-to-floating interest rate swaps to manage interest rate risk of certain long-term debt. These interest rate swaps are accounted for as fair value hedges of certain long-term debt. The maturity of the swap corresponds with the maturity of the debt instrument as noted in the table of long-term debt in Note 7. Eaton also entered into several forward starting floating-to-fixed interest rate swaps to manage interest rate risk on a future anticipated debt issuance.

A summary of interest rate swaps outstanding at December 31, 2018, follows:

Fixed-to-Floating Interest Rate Swaps

Notional amount		Fixed interest rate received	Floating interest rate paid	Basis for contracted floating interest rate paid
$	300	6.95%	7.29%	3 month LIBOR + 5.07%
25		8.88%	6.07%	6 month LIBOR + 3.84%
150		3.88%	4.14%	1 month LIBOR + 2.12%
275		3.47%	3.75%	1 month LIBOR + 1.74%
100		8.10%	7.92%	1 month LIBOR + 5.90%
1,400		2.75%	2.57%	1 month LIBOR + 0.58%
200		3.68%	3.05%	1 month LIBOR + 1.07%
25		7.63%	4.73%	6 month LIBOR + 2.48%
50		7.65%	4.84%	6 month LIBOR + 2.57%
25		5.45%	2.55%	6 month LIBOR + 0.28%

Forward Starting Floating-to-Fixed Interest Rate Swaps

Notional amount		Floating interest rate to be received	Fixed interest rate to be paid	Basis for contracted floating interest rate received
$	50	—%	3.10%	3 month LIBOR + 0.00%
50		—%	3.06%	3 month LIBOR + 0.00%

Derivative Financial Statement Impacts

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

	Notional amount		Other  current assets		Other noncurrent assets		Other current liabilities		Other noncurrent liabilities		Type of hedge	Term
December 31, 2018
Derivatives designated as hedges
Fixed-to-floating interest rate swaps	$	2,550	$	—	$	22	$	1	$	26	Fair value	3 months to 16 years
Forward starting floating-to-fixed interest rate swaps	100		—		—		—		3		Cash flow	34 years
Currency exchange contracts	951		19		2		11		8		Cash flow	1 to 36 months
Total			$	19	$	24	$	12	$	37
Derivatives not designated as hedges
Currency exchange contracts	$	3,886	$	40			$	20				1 to 12 months
Total			$	40			$	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 receivables, payables 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. For the year ended December 31, 2018, $110 of cash outflow resulting from the settlement of these derivatives has been classified in investing activities on the Consolidated Statement of Cash Flows. The net cash flow from the settlement of these derivatives has been presented in operating activities in prior periods and have not been restated as such amounts are not material.

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

	Gain (loss) recognized in other comprehensive (loss) income						Location of gain (loss) reclassified from Accumulated other comprehensive loss	Gain (loss) reclassified from Accumulated other comprehensive loss
	2018			2017				2018			2017
Derivatives designated as cash flow hedges
Forward starting floating-to-fixed interest rate swaps	$	(4	)	$	(15	)	Interest expense - net	$	—		$	—
Interest rate locks	—			(9		)	Interest expense - net	—			—
Currency exchange contracts	(4		)	—			Cost of products sold	(16		)	(17		)
Total	$	(8	)	$	(24	)		$	(16	)	$	(17	)

Amounts recognized in net income follow:

	2018			2017
Derivatives designated as fair value hedges
Fixed-to-floating interest rate swaps	$	(30	)	$	(33	)
Related long-term debt converted to floating interest    rates by interest rate swaps	30			33
	$	—		$	—

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

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Accounts Receivable and Inventory

12 Months Ended

Dec. 31, 2018

Accounts Receivable and Inventory [Abstract]

Inventory

ACCOUNTS RECEIVABLE AND INVENTORY

Accounts Receivable

Eaton performs ongoing credit evaluation of its customers and maintains sufficient allowances for potential credit losses. The Company evaluates the collectability of its accounts receivable based on the length of time the receivable is past due and any anticipated future write-off based on historic experience. Accounts receivable balances are written off against an allowance for doubtful accounts after a final determination of uncollectability has been made. Accounts receivable are net of an allowance for doubtful accounts of $55 and $57 at December 31, 2018 and 2017.

Inventory

Inventory is carried at lower of cost or net realizable value using the first-in, first-out (FIFO) method. Cost components include raw materials, purchased components, direct labor, indirect labor, utilities, depreciation, inbound freight charges, purchasing and receiving costs, inspection costs, warehousing costs, and costs of the distribution network.

The components of inventory follow:

	2018		2017
Raw materials	$	1,077	$	953
Work-in-process	500		471
Finished goods	1,208		1,196
Total inventory	$	2,785	$	2,620

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Business Segment and Geographic Region Information

12 Months Ended

Dec. 31, 2018

Segment Reporting [Abstract]

Business Segment and Geographic Region Information

BUSINESS SEGMENT AND GEOGRAPHIC REGION INFORMATION

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

Electrical Products and Electrical Systems and Services

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

Hydraulics

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

Aerospace

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

Vehicle

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

eMobility

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 principle markets for the eMobility segment are original equipment manufacturers and aftermarket customers of passenger cars, commercial vehicles, and construction, agriculture, and mining equipment.

Other Information

No single customer represented greater than 10% of net sales in 2018, 2017 or 2016, respectively.

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

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

Business Segment Information

	2018			2017			2016
Net sales
Electrical Products	$	7,124		$	6,917		$	6,703
Electrical Systems and Services	6,024			5,666			5,662
Hydraulics	2,756			2,468			2,222
Aerospace	1,896			1,744			1,753
Vehicle	3,489			3,326			3,141
eMobility	320			283			266
Total net sales	$	21,609		$	20,404		$	19,747
Segment operating profit
Electrical Products	$	1,311		$	1,233		$	1,186
Electrical Systems and Services	896			770			711
Hydraulics	370			288			198
Aerospace	398			332			335
Vehicle	611			541			471
eMobility	44			50			57
Total segment operating profit	3,630			3,214			2,958
Corporate
Amortization of intangible assets	(382		)	(388		)	(392		)
Interest expense - net	(271		)	(246		)	(233		)
Pension and other postretirement benefits expense	(1		)	(45		)	(60		)
Gain on sale of business	—			1,077			—
Arbitration decision expense	(275		)	—			—
Other corporate expense - net	(277		)	(244		)	(155		)
Income before income taxes	2,424			3,368			2,118
Income tax expense	278			382			199
Net income	2,146			2,986			1,919
Less net income for noncontrolling interests	(1		)	(1		)	(3		)
Net income attributable to Eaton ordinary shareholders	$	2,145		$	2,985		$	1,916

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

	2018		2017		2016
Electrical Products	$	—	$	4	$	3
Electrical Systems and Services	—		—		1
Total	$	—	$	4	$	4

There were no corporate acquisition integration charges in 2018, 2017 and 2016. See Note 3 for additional information about acquisition integration charges.

	2018		2017		2016
Identifiable assets
Electrical Products	$	2,451	$	2,446	$	2,254
Electrical Systems and Services	2,243		2,141		2,222
Hydraulics	1,473		1,345		1,188
Aerospace	935		938		830
Vehicle	2,289		2,367		1,534
eMobility	139		136		124
Total identifiable assets	9,530		9,373		8,152
Goodwill	13,328		13,568		13,201
Other intangible assets	4,846		5,265		5,514
Corporate	3,388		4,417		3,609
Total assets	$	31,092	$	32,623	$	30,476
Capital expenditures for property, plant and equipment
Electrical Products	$	135	$	130	$	128
Electrical Systems and Services	101		83		78
Hydraulics	106		96		92
Aerospace	38		37		28
Vehicle	143		141		142
eMobility	4		4		6
Total	527		491		474
Corporate	38		29		23
Total expenditures for property, plant and equipment	$	565	$	520	$	497
Depreciation of property, plant and equipment
Electrical Products	$	136	$	138	$	137
Electrical Systems and Services	85		83		82
Hydraulics	64		61		64
Aerospace	26		26		27
Vehicle	104		109		109
eMobility	5		5		4
Total	420		422		423
Corporate	53		54		63
Total depreciation of property, plant and equipment	$	473	$	476	$	486

Geographic Region Information

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

	2018		2017		2016
Net sales
United States	$	12,034	$	11,222	$	10,937
Canada	931		942		898
Latin America	1,442		1,485		1,448
Europe	4,553		4,394		4,228
Asia Pacific	2,649		2,361		2,236
Total	$	21,609	$	20,404	$	19,747
Long-lived assets
United States	$	1,898	$	1,872	$	1,924
Canada	20		20		19
Latin America	286		290		281
Europe	723		769		681
Asia Pacific	540		551		538
Total	$	3,467	$	3,502	$	3,443

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Condensed Consolidating Financial Statements

12 Months Ended

Dec. 31, 2018

Condensed Financial Information of Parent Company Only Disclosure [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 other of Eaton's 100% owned direct and indirect subsidiaries (the Guarantors) fully and unconditionally guaranteed (subject, in the case of the Guarantors, other than Eaton, to customary release provisions as described below), on a joint and several basis, the 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 7 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, 2017 and 2016, the Company undertook certain steps to restructure ownership of various subsidiaries. The transactions were entirely among wholly-owned subsidiaries under the common control of Eaton. These restructurings have been reflected as of the beginning of the earliest period presented below.

CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME YEAR ENDED DECEMBER 31, 2018
	Eaton Corporation plc			Eaton Corporation			Guarantors			Other subsidiaries			Consolidating adjustments			Total
Net sales	$	—		$	7,138		$	7,131		$	12,649		$	(5,309	)	$	21,609
Cost of products sold	—			5,644			5,172			9,011			(5,316		)	14,511
Selling and administrative expense	10			1,438			769			1,331			—			3,548
Research and development expense	—			148			149			287			—			584
Interest expense (income) - net	—			273			15			(18		)	1			271
Arbitration decision expense	—			—			275			—			—			275
Other expense (income) - net	(29		)	37			40			(52		)	—			(4		)
Equity in loss (earnings) of    subsidiaries, net of tax	(2,302		)	(1,089		)	(3,555		)	(2,408		)	9,354			—
Intercompany expense (income) - net	176			(212		)	2,215			(2,179		)	—			—
Income (loss) before income taxes	2,145			899			2,051			6,677			(9,348		)	2,424
Income tax expense (benefit)	—			(39		)	(112		)	428			1			278
Net income (loss)	2,145			938			2,163			6,249			(9,349		)	2,146
Less net loss (income) for    noncontrolling interests	—			—			—			(1		)	—			(1		)
Net income (loss) attributable to    Eaton ordinary shareholders	$	2,145		$	938		$	2,163		$	6,248		$	(9,349	)	$	2,145
Other comprehensive income (loss)	(741		)	(110		)	(716		)	(1,575		)	2,401			(741		)
Total comprehensive income (loss) attributable to Eaton    ordinary shareholders	$	1,404		$	828		$	1,447		$	4,673		$	(6,948	)	$	1,404

CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME YEAR ENDED DECEMBER 31, 2017
	Eaton Corporation plc			Eaton Corporation			Guarantors			Other subsidiaries			Consolidating adjustments			Total
Net sales	$	—		$	6,659		$	6,803		$	12,358		$	(5,416	)	$	20,404
Cost of products sold	—			5,276			4,997			8,895			(5,412		)	13,756
Selling and administrative expense	11			1,374			781			1,360			—			3,526
Research and development expense	—			180			179			225			—			584
Interest expense (income) - net	—			245			20			(20		)	1			246
Gain on sale of business	—			560			—			517			—			1,077
Other expense (income) - net	79			38			(67		)	(49		)	—			1
Equity in loss (earnings) of    subsidiaries, net of tax	(3,644		)	(938		)	(4,673		)	(4,619		)	13,874			—
Intercompany expense (income) - net	569			(757		)	1,242			(1,054		)	—			—
Income (loss) before income taxes	2,985			1,801			4,324			8,137			(13,879		)	3,368
Income tax expense (benefit)	—			389			(116		)	111			(2		)	382
Net income (loss)	2,985			1,412			4,440			8,026			(13,877		)	2,986
Less net loss (income) for    noncontrolling interests	—			—			—			(3		)	2			(1		)
Net income (loss) attributable to    Eaton ordinary shareholders	$	2,985		$	1,412		$	4,440		$	8,023		$	(13,875	)	$	2,985
Other comprehensive income (loss)	1,044			80			993			2,281			(3,354		)	1,044
Total comprehensive income (loss) attributable to Eaton    ordinary shareholders	$	4,029		$	1,492		$	5,433		$	10,304		$	(17,229	)	$	4,029

CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME YEAR ENDED DECEMBER 31, 2016
	Eaton Corporation plc			Eaton Corporation			Guarantors			Other subsidiaries			Consolidating adjustments			Total
Net sales	$	—		$	6,447		$	6,603		$	11,706		$	(5,009	)	$	19,747
Cost of products sold	—			5,057			4,865			8,484			(5,010		)	13,396
Selling and administrative expense	9			1,372			771			1,312			—			3,464
Research and development expense	—			196			160			231			—			587
Interest expense (income) - net	—			230			18			(14		)	(1		)	233
Other expense (income) - net	(35		)	7			48			(71		)	—			(51		)
Equity in loss (earnings) of    subsidiaries, net of tax	(2,433		)	(556		)	(3,023		)	(2,656		)	8,668			—
Intercompany expense (income) - net	543			(334		)	1,278			(1,487		)	—			—
Income (loss) before income taxes	1,916			475			2,486			5,907			(8,666		)	2,118
Income tax expense (benefit)	—			24			42			132			1			199
Net income (loss)	1,916			451			2,444			5,775			(8,667		)	1,919
Less net loss (income) for    noncontrolling interests	—			—			—			(5		)	2			(3		)
Net income (loss) attributable to    Eaton ordinary shareholders	$	1,916		$	451		$	2,444		$	5,770		$	(8,665	)	$	1,916
Other comprehensive income (loss)	(585		)	81			(527		)	(1,341		)	1,787			(585		)
Total comprehensive income (loss) attributable to Eaton    ordinary shareholders	$	1,331		$	532		$	1,917		$	4,429		$	(6,878	)	$	1,331

CONDENSED CONSOLIDATING BALANCE SHEETS DECEMBER 31, 2018
	Eaton Corporation plc		Eaton Corporation		Guarantors		Other subsidiaries		Consolidating adjustments			Total
Assets
Current assets
Cash	$	1	$	21	$	—	$	261	$	—		$	283
Short-term investments	—		—		—		157		—			157
Accounts receivable - net	—		483		1,400		1,975		—			3,858
Intercompany accounts receivable	—		1,575		1,851		2,968		(6,394		)	—
Inventory	—		540		766		1,555		(76		)	2,785
Prepaid expenses and other    current assets	—		107		32		354		14			507
Total current assets	1		2,726		4,049		7,270		(6,456		)	7,590
Property, plant and equipment - net	—		843		678		1,946		—			3,467
Other noncurrent assets
Goodwill	—		1,330		6,705		5,293		—			13,328
Other intangible assets	—		128		3,054		1,664		—			4,846
Deferred income taxes	—		340		—		288		(335		)	293
Investment in subsidiaries	16,476		7,658		71,334		25,551		(121,019		)	—
Intercompany loans receivable	1,508		5,843		8,406		59,147		(74,904		)	—
Other assets	—		746		117		705		—			1,568
Total assets	$	17,985	$	19,614	$	94,343	$	101,864	$	(202,714	)	$	31,092
Liabilities and shareholders’    equity
Current liabilities
Short-term debt	$	—	$	388	$	—	$	26	$	—		$	414
Current portion of long-term debt	—		338		—		1		—			339
Accounts payable	—		496		416		1,218		—			2,130
Intercompany accounts payable	32		1,127		3,206		2,029		(6,394		)	—
Accrued compensation	—		135		71		251		—			457
Other current liabilities	30		525		259		1,002		(2		)	1,814
Total current liabilities	62		3,009		3,952		4,527		(6,396		)	5,154
Noncurrent liabilities
Long-term debt	—		5,814		945		7		2			6,768
Pension liabilities	—		383		130		791		—			1,304
Other postretirement benefits    liabilities	—		166		83		72		—			321
Deferred income taxes	—		1		508		175		(335		)	349
Intercompany loans payable	1,816		5,182		66,507		1,399		(74,904		)	—
Other noncurrent liabilities	—		389		291		374		—			1,054
Total noncurrent liabilities	1,816		11,935		68,464		2,818		(75,237		)	9,796
Shareholders’ equity
Eaton shareholders’ equity	16,107		4,670		21,927		94,484		(121,081		)	16,107
Noncontrolling interests	—		—		—		35		—			35
Total equity	16,107		4,670		21,927		94,519		(121,081		)	16,142
Total liabilities and equity	$	17,985	$	19,614	$	94,343	$	101,864	$	(202,714	)	$	31,092

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		2,864		5,117		2,715		(10,704		)	—
Inventory	—		473		737		1,493		(83		)	2,620
Prepaid expenses and other    current assets	—		229		145		277		28			679
Total current assets	8		4,231		7,393		7,464		(10,759		)	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		7,942		75,661		39,556		(138,204		)	—
Intercompany loans receivable	3,122		7,089		2,909		61,427		(74,547		)	—
Other assets	—		748		166		784		—			1,698
Total assets	$	18,175	$	22,679	$	96,748	$	118,855	$	(223,834	)	$	32,623
Liabilities and shareholders’    equity
Current liabilities
Short-term debt	$	—	$	—	$	—	$	6	$	—		$	6
Current portion of long-term debt	—		542		36		—		—			578
Accounts payable	—		533		328		1,305		—			2,166
Intercompany accounts payable	4		4,916		4,381		1,403		(10,704		)	—
Accrued compensation	—		128		65		260		—			453
Other current liabilities	1		566		317		989		(1		)	1,872
Total current liabilities	5		6,685		5,127		3,963		(10,705		)	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		1,137		(74,547		)	—
Other noncurrent liabilities	—		313		273		379		—			965
Total noncurrent liabilities	917		10,834		70,726		2,650		(74,869		)	10,258
Shareholders’ equity
Eaton shareholders’ equity	17,253		5,160		20,895		112,205		(138,260		)	17,253
Noncontrolling interests	—		—		—		37		—			37
Total equity	17,253		5,160		20,895		112,242		(138,260		)	17,290
Total liabilities and equity	$	18,175	$	22,679	$	96,748	$	118,855	$	(223,834	)	$	32,623

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS DECEMBER 31, 2018
	Eaton Corporation plc			Eaton Corporation			Guarantors			Other subsidiaries			Consolidating adjustments			Total
Net cash provided by (used in)    operating activities	$	(26	)	$	(92	)	$	175		$	2,696		$	(95	)	$	2,658
Investing activities
Capital expenditures for property,    plant and equipment	—			(97		)	(93		)	(375		)	—			(565		)
Sales (purchases) of short-term investments - net	—			—			—			355			—			355
Investments in affiliates	(4		)	(36		)	—			—			40			—
Loans to affiliates	—			(100		)	(85		)	(6,441		)	6,626			—
Repayments of loans from affiliates	—			647			1,044			4,455			(6,146		)	—
(Payments) receipts for settlement of currency exchange contracts not designated as hedges - net	—			11			—			(121		)	—			(110		)
Other - net	—			(78		)	23			(23		)	—			(78		)
Net cash provided by (used in)     investing activities	(4		)	347			889			(2,150		)	520			(398		)
Financing activities
Proceeds from borrowings	—			388			—			22			—			410
Payments on borrowings	—			(538		)	(35		)	(1		)	—			(574		)
Proceeds from borrowings from    affiliates	3,756			2,452			318			100			(6,626		)	—
Payments on borrowings from    affiliates	(1,334		)	(3,178		)	(709		)	(925		)	6,146			—
Capital contributions from affiliates	—			—			—			40			(40		)	—
Other intercompany financing    activities	—			476			(651		)	175			—			—
Cash dividends paid	(1,149		)	—			—			—			—			(1,149		)
Cash dividends paid to affiliates	—			—			—			(95		)	95			—
Exercise of employee stock options	29			—			—			—			—			29
Repurchase of shares	(1,271		)	—			—			—			—			(1,271		)
Employee taxes paid from shares    withheld	—			(16		)	(5		)	(3		)	—			(24		)
Other - net	—			(1		)	—			(1		)	—			(2		)
Net cash provided by (used in)    financing activities	31			(417		)	(1,082		)	(688		)	(425		)	(2,581		)
Effect of currency on cash	—			—			—			43			—			43
Total increase (decrease) in cash	1			(162		)	(18		)	(99		)	—			(278		)
Cash at the beginning of the period	—			183			18			360			—			561
Cash at the end of the period	$	1		$	21		$	—		$	261		$	—		$	283

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS DECEMBER 31, 2017
	Eaton Corporation plc			Eaton Corporation			Guarantors			Other subsidiaries			Consolidating adjustments			Total
Net cash provided by (used in)    operating activities	$	258		$	(434	)	$	(56	)	$	4,507		$	(1,609	)	$	2,666
Investing activities
Capital expenditures for property,    plant and equipment	—			(89		)	(113		)	(318		)	—			(520		)
Cash received from sales (paid for acquisitions) of affiliates	—			—			(92		)	92			—			—
Sales (purchases) of short-term investments - net	—			—			—			(298		)	—			(298		)
Investments in affiliates	(190		)	(108		)	—			(90		)	388			—
Return of investments in affiliates	—			—			90			—			(90		)	—
Loans to affiliates	—			(444		)	(415		)	(6,308		)	7,167			—
Repayments of loans from affiliates	—			303			384			3,479			(4,166		)	—
Proceeds from the sales    of businesses	—			338			—			269			—			607
Other - net	—			(45		)	9			30			—			(6		)
Net cash provided by (used in)     investing activities	(190		)	(45		)	(137		)	(3,144		)	3,299			(217		)
Financing activities
Proceeds from borrowings	—			1,000			—			—			—			1,000
Payments on borrowings	—			(1,250		)	(297		)	(7		)	—			(1,554		)
Proceeds from borrowings from    affiliates	2,605			3,130			991			441			(7,167		)	—
Payments on borrowings from    affiliates	(822		)	(2,904		)	(353		)	(87		)	4,166			—
Capital contributions from affiliates	—			—			90			298			(388		)	—
Return of capital to affiliates	—			—			—			(90		)	90			—
Other intercompany financing    activities	—			616			574			(1,190		)	—			—
Cash dividends paid	(1,068		)	—			—			—			—			(1,068		)
Cash dividends paid to affiliates	—			—			(800		)	(809		)	1,609			—
Exercise of employee stock options	66			—			—			—			—			66
Repurchase of shares	(850		)	—			—			—			—			(850		)
Employee taxes paid from shares    withheld	—			(14		)	(5		)	(3		)	—			(22		)
Other - net	—			(8		)	(1		)	(5		)	—			(14		)
Net cash provided by (used in)    financing activities	(69		)	570			199			(1,452		)	(1,690		)	(2,442		)
Effect of currency on cash	—			—			—			11			—			11
Total increase (decrease) in cash	(1		)	91			6			(78		)	—			18
Cash at the beginning of the period	1			92			12			438			—			543
Cash at the end of the period	$	—		$	183		$	18		$	360		$	—		$	561

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS DECEMBER 31, 2016
	Eaton Corporation plc			Eaton Corporation			Guarantors			Other subsidiaries			Consolidating adjustments			Total
Net cash provided by (used in)    operating activities	$	(253	)	$	(9	)	$	(209	)	$	3,041		$	—		$	2,570
Investing activities
Capital expenditures for property,    plant and equipment	—			(92		)	(118		)	(287		)	—			(497		)
Sales (purchases) of short-term    investments - net	—			—			2			(42		)	—			(40		)
Investments in affiliates	(1,250		)	(8		)	(120		)	(1,370		)	2,748			—
Return of investments in affiliates	—			—			47			—			(47		)	—
Loans to affiliates	—			(251		)	(1,013		)	(7,850		)	9,114			—
Repayments of loans from affiliates	—			1,293			335			5,616			(7,244		)	—
Other - net	—			(9		)	42			(25		)	—			8
Net cash provided by (used in)    investing activities	(1,250		)	933			(825		)	(3,958		)	4,571			(529		)
Financing activities
Proceeds from borrowings	—			21			610			—			—			631
Payments on borrowings	—			(408		)	(233		)	(12		)	—			(653		)
Proceeds from borrowings from    affiliates	3,843			4,045			1,120			106			(9,114		)	—
Payments on borrowings from    affiliates	(646		)	(4,712		)	(1,844		)	(42		)	7,244			—
Capital contribution from affiliates	—			—			1,370			1,378			(2,748		)	—
Return of capital to affiliates	—			—			—			(47		)	47			—
Other intercompany financing    activities	—			206			21			(227		)	—			—
Cash dividends paid	(1,037		)	—			—			—			—			(1,037		)
Exercise of employee stock options	74			—			—			—			—			74
Repurchase of shares	(730		)	—			—			—			—			(730		)
Employee taxes paid from shares    withheld	—			(12		)	(3		)	(3		)	—			(18		)
Other - net	—			1			(4		)	(2		)	—			(5		)
Net cash provided by (used in)    financing activities	1,504			(859		)	1,037			1,151			(4,571		)	(1,738		)
Effect of currency on cash	—			—			—			(28		)	—			(28		)
Total increase (decrease) in cash	1			65			3			206			—			275
Cash at the beginning of the period	—			27			9			232			—			268
Cash at the end of the period	$	1		$	92		$	12		$	438		$	—		$	543

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

12 Months Ended

Dec. 31, 2018

Accounting Policies [Abstract]

Adoption of ASU 2017-07 [Policy Text Block]

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 an increase in Selling and administrative expense with a corresponding increase in Other income - net of $6 for the year ended December 31, 2018, a reduction in Selling and administrative expense with a corresponding decrease in Other income - net of $39 for the year ended December 31, 2017, and a reduction in Cost of products sold, Selling and administrative expense, and Research and development expense with a corresponding decrease in Other income - net of $56 for the year ended December 31, 2016.

Adoption of ASU 2016-16 [Policy Text Block]

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.

General Information

General Information and Basis of Presentation

Eaton Corporation plc (Eaton or the Company) is a power management company with 2018 net sales of $21.6 billion. The Company provides energy-efficient solutions that help its customers effectively manage electrical, hydraulic and mechanical power more reliably, safely and sustainably. Eaton has approximately 99,000 employees in 59 countries and sells products to customers in more than 175 countries.

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

The consolidated financial statements include the accounts of Eaton and all subsidiaries and other entities it controls. Intercompany transactions and balances have been eliminated. The equity method of accounting is used for investments in associate companies where the Company has significant influence and generally a 20% to 50% ownership interest. Equity investments are evaluated for impairment whenever events or circumstances indicate the book value of the investment exceeds fair value. An impairment would exist if there is an other-than-temporary decline in value. Income from equity investments is reported in Other (income) expense - net. Eaton does not have off-balance sheet arrangements or financings with unconsolidated entities. In the ordinary course of business, the Company leases certain real properties and equipment, as described in Note 9.

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

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 reportable segments that were re-segmented, previously reported segment financial information has been updated for 2016 and 2017. See Note 16 for additional information related to these segments.

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 an increase in Selling and administrative expense with a corresponding increase in Other income - net of $6 for the year ended December 31, 2018, a reduction in Selling and administrative expense with a corresponding decrease in Other income - net of $39 for the year ended December 31, 2017, and a reduction in Cost of products sold, Selling and administrative expense, and Research and development expense with a corresponding decrease in Other income - net of $56 for the year ended December 31, 2016.

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

Adoption of ASU 2014-09 [Policy Text Block]

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

Business Description and Basis of Presentation

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 reportable segments that were re-segmented, previously reported segment financial information has been updated for 2016 and 2017. See Note 16 for additional information related to these segments.

Eaton Corporation plc (Eaton or the Company) is a power management company with 2018 net sales of $21.6 billion. The Company provides energy-efficient solutions that help its customers effectively manage electrical, hydraulic and mechanical power more reliably, safely and sustainably. Eaton has approximately 99,000 employees in 59 countries and sells products to customers in more than 175 countries.

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

Consolidation Policy

The consolidated financial statements include the accounts of Eaton and all subsidiaries and other entities it controls. Intercompany transactions and balances have been eliminated. The equity method of accounting is used for investments in associate companies where the Company has significant influence and generally a 20% to 50% ownership interest. Equity investments are evaluated for impairment whenever events or circumstances indicate the book value of the investment exceeds fair value. An impairment would exist if there is an other-than-temporary decline in value. Income from equity investments is reported in Other (income) expense - net. Eaton does not have off-balance sheet arrangements or financings with unconsolidated entities. In the ordinary course of business, the Company leases certain real properties and equipment, as described in Note 9.

Foreign Currency Translation

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

Reclassifications

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

Revenue Recognition

Revenue Recognition

Sales 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 added, 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 4 for additional information.

Goodwill and Indefinite Life Intangible Assets

Goodwill and Indefinite Life Intangible Assets

Goodwill is evaluated annually for impairment as of July 1 using either a quantitative or qualitative analysis. Goodwill is tested for impairment at the reporting unit level, which is equivalent to Eaton's operating segments and based on the net assets for each segment, including goodwill and intangible assets. Goodwill is assigned to each operating segment, as this represents the lowest level that constitutes a business and is the level at which management regularly reviews the operating results. The Company performs a quantitative analysis using a discounted cash flow model and other valuation techniques, but may elect to perform a qualitative analysis. Additionally, goodwill is evaluated for impairment whenever an event occurs or circumstances change that would indicate that it is more likely than not that the fair value of an operating segment is less than its carrying amount.

The annual goodwill impairment test was performed using a qualitative analysis in 2018 and 2017 and a quantitative analysis in 2016. A qualitative analysis is performed by assessing certain trends and factors, including projected market outlook and growth rates, forecasted and actual sales and operating profit margins, discount rates, industry data, and other relevant qualitative factors. These trends and factors are compared to, and based on, the assumptions used in the most recent quantitative analysis performed for each reporting unit. The results of the qualitative analyses did not indicate a need to perform quantitative analysis.

Goodwill impairment testing was also performed using a quantitative analysis for the Electrical Products, Vehicle and eMobility segments in the first quarter of 2018 due to a reorganization of the Company's businesses resulting in the creation of the eMobility segment. The Company used the relative fair value method to reallocate goodwill among these reporting units.

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

Based on these analyses performed in 2018 and 2017, the fair value of Eaton's reporting units continue to substantially exceed their respective carrying amounts and thus, no impairment exists.

Indefinite life intangible assets consist of certain trademarks. They are evaluated annually for impairment as of July 1 using either a quantitative or qualitative analysis to determine whether their fair values exceed their respective carrying amounts. Indefinite life intangible asset impairment testing for 2018 and 2017 was performed using a quantitative analysis. The Company determines the fair value of these assets using a royalty relief methodology similar to that employed when the associated assets were acquired, but using updated estimates of future sales, cash flows and profitability. Additionally, indefinite life intangible assets are evaluated for impairment whenever an event occurs or circumstances change that would indicate that it is more likely than not that the asset is impaired. For 2018 and 2017, the fair value of indefinite lived intangible assets exceeded the respective carrying value.

For additional information about goodwill and other intangible assets, see Note 6.

Other Long-Lived Assets

Other Long-Lived Assets

Depreciation and amortization for property, plant and equipment, and intangible assets subject to amortization, are generally computed by the straight-line method and included in Cost of products sold, Selling and administrative expense, and Research and development expense, as appropriate. Cost of buildings are depreciated generally over 40 years and machinery and equipment over 3 to 10 years. At December 31, 2018, the weighted-average amortization period for intangible assets subject to amortization was 17 years for patents and technology; 17 years for customer relationships; and 17 years for certain trademarks. Software is generally amortized up to a life of 15 years.

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

Retirement Benefits Plans

Retirement Benefits Plans

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

Net actuarial gains or losses are amortized to expense on a plan-by-plan basis when they exceed the accounting corridor. The Company’s corridors are set at either 8% or 10%, depending on the plan, of the greater of the plan assets or benefit obligations. Gains or losses outside of the corridor are subject to amortization over an average employee future service period that differs by plan, but is approximately 11 years on a weighted average basis. If most or all of the plan’s participants are no longer actively accruing benefits, the average life expectancy is used.

Asset Retirement Obligations

Asset Retirement Obligations

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

Income Taxes

Income Taxes

Deferred income tax assets and liabilities are determined based on the difference between the financial statement and tax basis of the respective assets and liabilities, using enacted tax rates in effect for the year when the differences are expected to reverse. Deferred income tax assets are recognized for income tax loss carryforwards and income tax credit carryforwards. Judgment is required in determining and evaluating income tax provisions and valuation allowances for deferred income tax assets. Eaton recognizes an income tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by taxing authorities, based on the technical merits of the position. Eaton evaluates and adjusts these accruals based on changing facts and circumstances. Eaton recognizes interest and penalties related to unrecognized income tax benefits in the provision for income tax expense. For additional information about income taxes, see Note 10.

Derivative Financial Instruments and Hedging Activities

Derivative Financial Instruments and Hedging Activities

Eaton uses derivative financial instruments to manage the exposure to the volatility in raw material costs, currency, and interest rates on certain debt. These instruments are marked to fair value in the accompanying Consolidated Balance Sheets. Changes in the fair value of derivative assets or liabilities (i.e., gains or losses) are recognized depending upon the type of hedging relationship and whether an instrument has been designated as a hedge. For those instruments that qualify for hedge accounting, Eaton designates the hedging instrument, based upon the exposure being hedged, as a cash flow hedge, a fair value hedge, or a hedge of a net investment in a foreign operation. Changes in fair value of these instruments that do not qualify for hedge accounting are recognized immediately in net income. See Note 14 for additional information about hedges and derivative financial instruments.

Recently Issued Accounting Pronouncements

Recently Issued Accounting Pronouncements

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. ASU 2016-02 will require additional disclosures in the notes to the consolidated financial statements.

Eaton adopted the standard, and related amendments, in the first quarter of 2019 using the optional transition method and will not restate prior periods. The Company elected to use the package of practical expedients permitted under the transition guidance within the new standard, which among other things, allowed the carry forward of historical lease classification of existing leases. The Company made an accounting policy election to not recognize lease assets or liabilities for leases with a term of 12 months or less. Additionally, when accounting for leases, the Company combines payments for leased assets, related services and other components of a lease.

The Company is in the final stage of assessing the impact of adopting the standard. The Company collected the lease data required by the new standard, and has identified and is implementing the appropriate changes to business processes and controls to support recognition and disclosure under the new standard. In the first quarter of 2019, Eaton plans to conclude its testing of the new third-party lease accounting system. The Company expects to record a cumulative-effect adjustment of less than $1 to retained earnings as of January 1, 2019. Additionally, the adoption of the new standard will result in the recording of lease assets and lease liabilities for operating leases in the range of approximately $400 to $500 as of January 1, 2019. The Company does not expect the new standard to have a material impact to the Consolidated Statements of Income or Cash Flows.

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Income Taxes (Policies)

12 Months Ended

Dec. 31, 2018

Income Tax Disclosure [Abstract]

Adoption of ASU 2018-02 [Policy Text Block]

Adoption of Accounting Policy

In January 2018 the FASB issued ASU 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from accumulated other comprehensive income (AOCI), which gives companies the option to reclassify to retained earnings certain income tax effects resulting from the TCJA related to items in AOCI that the FASB refers to as having been stranded in AOCI.

The new guidance may be applied retrospectively to each period in which the effect of the TCJA is recognized, or in the period of adoption. Companies must adopt this guidance for years beginning after December 15, 2018 and interim periods within those years. Early adoption is also permitted for periods for which financial statements have not yet been issued or made available for issuance. Eaton elected to early adopt ASU 2018-02 in the fourth quarter of 2018. Eaton elected not to reclassify any income tax effects resulting from the TCJA from accumulated other comprehensive loss to retained earnings. The Company’s policy is to release income tax effects from AOCI when individual units of account are sold, terminated, or extinguished.

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

12 Months Ended

Dec. 31, 2018

Accounting Policies [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

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Acquisition Integration Charges (Tables)

12 Months Ended

Dec. 31, 2018

Business Combinations [Abstract]

Acquisition Integration Charges and Transaction Costs

A summary of these charges follows:

	2018		2017		2016
Electrical Products	$	—	$	4	$	3
Electrical Systems and Services	—		—		1
Total acquisition integration charges before income taxes	—		4		4
Income taxes	—		2		1
Total after income taxes	$	—	$	2	$	3
Per ordinary share - diluted	$	—	$	—	$	0.01

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Revenue Recognition (Tables)

12 Months Ended

Dec. 31, 2018

Disaggregation of Revenue [Line Items]

Schedule of the impact of Adoption of ASU 2014-09

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

	Year ended December 31, 2018
Consolidated Statements of Income	As Reported		Adjustment			Balances without Adoption of ASC 606
Net sales	$	21,609	$	(30	)	$	21,579
Cost of products sold	14,511		(20		)	14,491
Income before income taxes	2,424		(10		)	2,414
Income tax expense	278		(2		)	276
Net income	2,146		(8		)	2,138
Net income attributable to Eaton ordinary shareholders	$	2,145	$	(8	)	$	2,137

	December 31, 2018
Consolidated Balance Sheets	As Reported		Adjustment			Balances without Adoption of ASC 606
Assets
Accounts receivable - net	$	3,858	$	60		$	3,918
Inventory	2,785		18			2,803
Prepaid expenses and other current assets	507		(109		)	398
Deferred income taxes	293		(1		)	292
Liabilities and shareholders’ equity
Other current liabilities	$	1,814	$	(26	)	$	1,788
Eaton shareholders' equity	$	16,142	$	(6	)	$	16,136

Schedule of Disaggregation of Sales [Table Text Block]

	Year ended December 31, 2018
Net sales	United States		Rest of World		Total
Electrical Products	$	4,112	$	3,012	$	7,124
Electrical Systems and Services	3,936		2,088		6,024
Hydraulics	1,190		1,566		2,756
	Original Equipment Manufacturers		Aftermarket, Distribution and End User
Aerospace	$	1,085	$	811	1,896
	Commercial		Passenger and Light Duty
Vehicle	$	1,759	$	1,730	3,489
eMobility					320
Total					$	21,609

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	967
Revenue recognized in the period	(939		)
Translation	(7		)
Balance at December 31, 2018	$	248

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Restructuring Charges (Tables)

12 Months Ended

Dec. 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 closing 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	(36		)	(4		)	(40		)
Other adjustments	(17		)	—			(17		)
Balance at December 31, 2018	$	14		$	1		$	15

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Goodwill and Other Intangible Assets Goodwill (Tables)

12 Months Ended

Dec. 31, 2018

Goodwill and Intangible Assets Disclosure [Abstract]

Rollforward of goodwill

Changes in the carrying amount of goodwill by segment follow:

	December 31, 2016		Goodwill written off from sale of business			Translation		December 31, 2017		Translation			December 31, 2018
Electrical Products	$	6,418	$	—		$	260	$	6,678	$	(116	)	$	6,562
Electrical Systems and Services	4,203		(3		)	111		4,311		(70		)	4,241
Hydraulics	1,221		—			36		1,257		(45		)	1,212
Aerospace	938		—			9		947		(6		)	941
Vehicle	342		(52		)	4		294		(2		)	292
eMobility	79		—			2		81		(1		)	80
Total	$	13,201	$	(55	)	$	422	$	13,568	$	(240	)	$	13,328

Summary of other intangible assets

A summary of other intangible assets follows:

	2018				2017
	Historical cost		Accumulated amortization		Historical cost		Accumulated amortization
Intangible assets not subject to amortization
Trademarks	$	1,626			$	1,654
Intangible assets subject to amortization
Customer relationships	$	3,463	$	1,600	$	3,586	$	1,475
Patents and technology	1,329		646		1,395		628
Trademarks	1,032		419		1,137		473
Other	92		31		99		30
Total intangible assets subject to amortization	$	5,916	$	2,696	$	6,217	$	2,606

Expense related to intangible assets subject to amortization in 2014, and for each of the next five years

Amortization expense related to intangible assets subject to amortization in 2018, and estimated amortization expense for each of the next five years, follows:

2018	$	368
2019	357
2020	352
2021	341
2022	332
2023	283

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Debt Debt (Tables)

12 Months Ended

Dec. 31, 2018

Debt Disclosure [Abstract]

Summary of long-term debt, including the current portion

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

	2018			2017
5.60% notes due 2018 ($415 converted to floating rate by interest rate swap)	$	—		$	450
4.215% Japanese yen notes due 2018	—			88
6.95% notes due 2019 ($300 converted to floating rate by interest rate swap)	300			300
3.875% debentures due 2020 ($150 converted to floating rate by interest rate swap)	239			239
3.47% notes due 2021 ($275 converted to floating rate by interest rate swap)	300			300
8.10% debentures due 2022 ($100 converted to floating rate by interest rate swap)	100			100
2.75% senior notes due 2022 ($1,400 converted to floating rate by interest rate swap)	1,600			1,600
3.68% notes due 2023 ($200 converted to floating rate by interest rate swap)	300			300
0.75% euro notes due 2024	629			659
6.50% debentures due 2025	145			145
3.10% senior notes due 2027	700			700
7.65% debentures due 2029 ($50 converted to floating rate by interest rate swap)	200			200
4.00% senior notes due 2032	700			700
5.45% debentures due 2034 ($25 converted to floating rate by interest rate swap)	136			136
5.80% notes due 2037	240			240
4.15% senior notes due 2042	1,000			1,000
3.92% senior notes due 2047	300			300
5.25% to 8.875% notes (maturities ranging from 2019 to 2035, including $50 converted to floating rate by interest rate swap)	203			239
Other	15			49
Total long-term debt	7,107			7,745
Less current portion of long-term debt	(339		)	(578		)
Long-term debt less current portion	$	6,768		$	7,167

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

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

2019	$	339
2020	241
2021	302
2022	1,701
2023	301

Interest paid on debt

Interest paid on debt follows:

2018	$	313
2017	293
2016	266

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Commitments and Contingencies (Tables)

12 Months Ended

Dec. 31, 2018

Commitments and Contingencies Disclosure [Abstract]

Current and long-term warranty accruals

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

	2018			2017			2016
Balance at January 1	$	188		$	180		$	195
Provision	139			163			117
Settled	(145		)	(156		)	(130		)
Other	(6		)	1			(2		)
Balance at December 31	$	176		$	188		$	180

Future minimum rental commitments for noncancelable operating leases

A summary of minimum rental commitments at December 31, 2018 under noncancelable operating leases, which expire at various dates and in most cases contain renewal options, for each of the next five years and thereafter in the aggregate, follow:

2019	$	165
2020	133
2021	106
2022	75
2023	53
Thereafter	110
Total noncancelable lease commitments	$	642

Rental expense

A summary of rental expense follows:

2018	$	232
2017	222
2016	220

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Retirement Benefits Plans (Tables)

12 Months Ended

Dec. 31, 2018

Retirement Benefits [Abstract]

Obligations and funded status

Obligations and Funded Status

	United States pension liabilities						Non-United States pension liabilities						Other postretirement liabilities
	2018			2017			2018			2017			2018			2017
Funded status
Fair value of plan assets	$	3,068		$	3,585		$	1,560		$	1,727		$	37		$	55
Benefit obligations	(3,633		)	(3,961		)	(2,285		)	(2,399		)	(378		)	(448		)
Funded status	$	(565	)	$	(376	)	$	(725	)	$	(672	)	$	(341	)	$	(393	)
Amounts recognized in the Consolidated    Balance Sheets
Non-current assets	$	—		$	82		$	58		$	136		$	—		$	—
Current liabilities	(20		)	(15		)	(24		)	(25		)	(20		)	(31		)
Non-current liabilities	(545		)	(443		)	(759		)	(783		)	(321		)	(362		)
Total	$	(565	)	$	(376	)	$	(725	)	$	(672	)	$	(341	)	$	(393	)
Amounts recognized in Accumulated other    comprehensive loss (pretax)
Net actuarial (gain) loss	$	1,153		$	1,059		$	683		$	596		$	(20	)	$	19
Prior service cost (credit)	7			4			27			8			(32		)	(46		)
Total	$	1,160		$	1,063		$	710		$	604		$	(52	)	$	(27	)

Change in benefit obligations

Change in Benefit Obligations

	United States pension liabilities						Non-United States pension liabilities						Other postretirement liabilities
	2018			2017			2018			2017			2018			2017
Balance at January 1	$	3,961		$	3,771		$	2,399		$	2,314		$	448		$	473
Service cost	100			96			63			71			2			3
Interest cost	122			123			52			55			13			14
Actuarial (gain) loss	(272		)	271			(16		)	(148		)	(39		)	2
Gross benefits paid	(282		)	(301		)	(112		)	(97		)	(67		)	(74		)
Currency translation	—			—			(124		)	223			(4		)	3
Plan amendments	4			1			21			—			—			—
Other	—			—			2			(19		)	25			27
Balance at December 31	$	3,633		$	3,961		$	2,285		$	2,399		$	378		$	448
Accumulated benefit obligation	$	3,506		$	3,802		$	2,175		$	2,283

Change in plan assets

Change in Plan Assets

	United States pension liabilities						Non-United States pension liabilities						Other postretirement liabilities
	2018			2017			2018			2017			2018			2017
Balance at January 1	$	3,585		$	2,969		$	1,727		$	1,478		$	55		$	74
Actual return on plan assets	(252		)	543			(72		)	131			—			8
Employer contributions	17			374			109			99			25			20
Gross benefits paid	(282		)	(301		)	(112		)	(97		)	(67		)	(74		)
Currency translation	—			—			(93		)	135			—			—
Other	—			—			1			(19		)	24			27
Balance at December 31	$	3,068		$	3,585		$	1,560		$	1,727		$	37		$	55

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

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

	United States pension liabilities				Non-United States pension liabilities
	2018		2017		2018		2017
Projected benefit obligation	$	3,633	$	3,540	$	905	$	966
Accumulated benefit obligation	3,506		3,380		853		911
Fair value of plan assets	3,068		3,081		158		175

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

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

	United States pension liabilities						Non-United States pension liabilities						Other postretirement liabilities
	2018			2017			2018			2017			2018			2017
Balance at January 1	$	1,063		$	1,235		$	604		$	779		$	(27	)	$	(39	)
Prior service cost arising during the year	4			1			21			—			—			—
Net loss (gain) arising during the year	233			(28		)	161			(185		)	(36		)	(2		)
Currency translation	—			—			(35		)	66			(2		)	1
Less amounts included in expense during the year	(140		)	(145		)	(41		)	(56		)	13			13
Net change for the year	97			(172		)	106			(175		)	(25		)	12
Balance at December 31	$	1,160		$	1,063		$	710		$	604		$	(52	)	$	(27	)

Benefits expense

Benefits Expense

	United States pension benefit expense									Non-United States pension benefit expense									Other postretirement benefits expense
	2018			2017			2016			2018			2017			2016			2018			2017			2016
Service cost	$	100		$	96		$	111		$	63		$	71		$	63		$	2		$	3		$	4
Interest cost	122			123			125			52			55			62			13			14			17
Expected return on plan assets	(253		)	(244		)	(250		)	(105		)	(94		)	(92		)	(3		)	(4		)	(6		)
Amortization	94			83			92			39			51			33			(13		)	(13		)	(9		)
	63			58			78			49			83			66			(1		)	—			6
Settlements and special termination benefits	46			62			81			2			5			3			—			—			1
Total expense	$	109		$	120		$	159		$	51		$	88		$	69		$	(1	)	$	—		$	7

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

The estimated pretax net amounts that will be recognized from Accumulated other comprehensive loss into net periodic benefit cost in 2019 follow:

	United States pension liabilities		Non-United States pension liabilities		Other postretirement liabilities
Actuarial loss	$	113	$	36	$	—
Prior service cost (credit)	1		3		(14		)
Total	$	114	$	39	$	(14	)

Assumptions used to determine other postretirement obligations and expense

Pension Plans

	United States pension plans						Non-United States pension plans
	2018		2017		2016		2018		2017		2016
Assumptions used to determine benefit obligation at year-end
Discount rate	4.28	%	3.64	%	4.12	%	2.83	%	2.62	%	2.63	%
Rate of compensation increase	3.14	%	3.15	%	3.15	%	3.10	%	3.11	%	3.13	%
Assumptions used to determine expense
Discount rate used to determine benefit obligation	3.64	%	4.12	%	4.22	%	2.62	%	2.63	%	3.46	%
Discount rate used to determine service cost	3.78	%	4.31	%	4.35	%	3.54	%	3.38	%	4.13	%
Discount rate used to determine interest cost	3.19	%	3.40	%	3.42	%	2.31	%	2.34	%	3.07	%
Expected long-term return on plan assets	7.52	%	7.90	%	8.50	%	6.40	%	6.30	%	6.62	%
Rate of compensation increase	3.15	%	3.15	%	3.18	%	3.11	%	3.13	%	3.12	%

Assumptions used to determine other postretirement benefits obligations and expense

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

	Other postretirement benefits plans
	2018		2017		2016
Assumptions used to determine benefit obligation at year-end
Discount rate	4.23	%	3.55	%	3.96	%
Health care cost trend rate assumed for next year	7.10	%	8.25	%	7.35	%
Ultimate health care cost trend rate	4.75	%	4.75	%	4.75	%
Year ultimate health care cost trend rate is achieved	2028		2027		2026
Assumptions used to determine expense
Discount rate used to determine benefit obligation	3.55	%	3.96	%	4.04	%
Discount rate used to determine service cost	3.62	%	4.11	%	4.26	%
Discount rate used to determine interest cost	3.04	%	3.18	%	3.12	%
Initial health care cost trend rate	8.25	%	7.35	%	7.10	%
Ultimate health care cost trend rate	4.75	%	4.75	%	4.75	%
Year ultimate health care cost trend rate is achieved	2027		2026		2025

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

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

	1% increase		1% decrease
Effect on total service and interest cost	$	1	$	—
Effect on other postretirement liabilities	11		(10		)

Employer contributions to pension plans

Contributions to pension plans that Eaton expects to make in 2019, and made in 2018, 2017 and 2016, follow:

	2019		2018		2017		2016
United States plans	$	20	$	17	$	374	$	160
Non-United States plans	96		109		99		102
Total contributions	$	116	$	126	$	473	$	262

Expected pension and other postretirement benefit payments and expected subsidy

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

	Estimated United States pension payments		Estimated non-United States pension payments		Estimated other postretirement benefit payments
					Gross		Medicare prescription drug subsidy
2019	$	299	$	86	$	40	$	(2	)
2020	291		88		36		(2		)
2021	296		90		32		(1		)
2022	297		94		33		—
2023	294		98		30		—
2024 - 2028	1,440		539		126		(2		)

Fair value of pension plan assets

A summary of the fair value of pension plan assets at December 31, 2018 and 2017, follows:

	Total		Quoted prices in active markets for identical assets (Level 1)		Other observable inputs (Level 2)		Unobservable inputs (Level 3)1
2018
Common collective trusts
Non-United States equity and global equities	$	612	$	—	$	612	$	—
United States equity	50		—		50		—
Fixed income	483		—		483		—
Fixed income securities	721		—		721		—
United States treasuries	261		261		—		—
Bank loans	107		—		107		—
Real estate	202		181		—		21
Equity securities	51		51		—		—
Cash equivalents	152		104		48		—
Exchange traded funds	60		60		—		—
Other	90		—		15		75
Common collective and other trusts measured at net asset value	1,834
Money market funds measured at net asset value	5
Total pension plan assets	$	4,628	$	657	$	2,036	$	96

¹These pension plan assets include private real estate, private credit and private equity funds that generally have redemption notice periods of six months or longer, and are not eligible for redemption until the underlying assets are liquidated or distributed. The Company has unfunded commitments to these funds of approximately$180atDecember 31, 2018, which will be satisfied by a reallocation of pension plan assets.

	Total		Quoted prices in active markets for identical assets (Level 1)		Other observable inputs (Level 2)		Unobservable inputs (Level 3)1
2017
Common collective trusts
Non-United States equity and global equities	$	741	$	—	$	741	$	—
United States equity	86		—		86		—
Fixed income	478		—		478		—
Fixed income securities	709		—		709		—
United States treasuries	67		67		—		—
Bank loans	161		—		161		—
Real estate	239		220		—		19
Equity securities	139		139		—		—
Cash equivalents	86		51		35		—
Exchange traded funds	224		224		—		—
Other	81		—		8		73
Common collective and other trusts measured at net asset value	2,225
Hedge funds measured at net asset value	67
Money market funds measured at net asset value	9
Total pension plan assets	$	5,312	$	701	$	2,218	$	92

¹These pension plan assets include private real estate and private equity funds that generally have redemption notice periods of six months or longer, and are not eligible for redemption until the underlying assets are liquidated or distributed. The Company has unfunded commitments to these funds of approximately$20atDecember 31, 2017, which will be satisfied by a reallocation of pension plan assets.

Fair value measurement of plan assets using significant unobservable inputs

The fair value measurement of plan assets using significant unobservable inputs (Level 3) changed during 2017 and 2018 due to the following:

	Real estate			Other			Total
Balance at December 31, 2016	$	6		$	95		$	101
Actual return on plan assets:
Gains (losses) relating to assets still held at year-end	1			(5		)	(4		)
Purchases, sales, settlements - net	12			(17		)	(5		)
Transfers into or out of Level 3	—			—			—
Balance at December 31, 2017	19			73			92
Actual return on plan assets:
Gains (losses) relating to assets still held at year-end	(1		)	—			(1		)
Purchases, sales, settlements - net	3			2			5
Transfers into or out of Level 3	—			—			—
Balance at December 31, 2018	$	21		$	75		$	96

Fair value of other postretirement benefits plan assets

A summary of the fair value of other postretirement benefits plan assets at December 31, 2018 and 2017, follows:

	Total		Quoted prices in active markets for identical assets (Level 1)		Other observable inputs (Level 2)		Unobservable inputs (Level 3)
2018
Cash equivalents	$	6	$	6	$	—	$	—
Common collective and other trusts measured at net asset value	31
Total other postretirement benefits plan assets	$	37	$	6	$	—	$	—

	Total		Quoted prices in active markets for identical assets (Level 1)		Other observable inputs (Level 2)		Unobservable inputs (Level 3)
2017
Cash equivalents	$	7	$	7	$	—	$	—
Common collective and other trusts measured at net asset value	48
Total other postretirement benefits plan assets	$	55	$	7	$	—	$	—

Employer contributions to defined contribution benefit plans, charged to expense

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

2018	$	124
2017	114
2016	72

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Income Taxes (Tables)

12 Months Ended

Dec. 31, 2018

Income Tax Disclosure [Abstract]

Income (loss) before income taxes

Income (loss) before income taxes and income tax (benefit) expense are summarized below based on the geographic location of the operation to which such earnings and income taxes are attributable.

	Income (loss) before income taxes
	2018			2017			2016
Ireland	$	(365	)	$	(1,090	)	$	(923	)
Foreign	2,789			4,458			3,041
Total income before income taxes	$	2,424		$	3,368		$	2,118

Income tax (benefit) expense

	Income tax expense (benefit)
	2018			2017			2016
Current
Ireland	$	47		$	1		$	2
Foreign
United States	115			123			93
Non-United States	255			234			209
Total current income tax expense	417			358			304
Deferred
Ireland	6			—			2
Foreign
United States	(122		)	82			(77		)
Non-United States	(23		)	(58		)	(30		)
Total deferred income tax expense (benefit)	(139		)	24			(105		)
Total income tax expense	$	278		$	382		$	199

Reconciliations of income taxes from the appropriate statutory rate

Reconciliations of income taxes from the Ireland national statutory rate of 25% to the consolidated effective income tax rate follow:

	2018		2017		2016
Income taxes at the applicable statutory rate	25.0	%	25.0	%	25.0	%
Ireland operations
Ireland tax on trading income	(2.0	)%	—	%	(0.3	)%
Nondeductible interest expense	7.8	%	8.2	%	11.5	%
Ireland Other - net	0.1	%	—	%	—	%
Foreign operations
United States operations (earnings taxed at other than     the applicable statutory rate)	0.2	%	1.7	%	0.1	%
U.S. federal tax rate change	—	%	(7.5	)%	—	%
U.S. tax on foreign earnings	—	%	4.8	%	—	%
U.S. foreign tax credit	(0.2	)%	(3.9	)%	0.6	%
Credit for research activities	(0.8	)%	(0.5	)%	(0.8	)%
Tax on foreign currency loss	(1.6	)%	—	%	—	%
U.S. Other - net	2.4	%	3.2	%	2.5	%
Non-U.S. operations (earnings taxed at other than    the applicable statutory tax rate)	(19.8	)%	(22.9	)%	(26.8	)%
Non-U.S. operations - other items	0.7	%	0.4	%	0.9	%
Worldwide operations
Adjustments to tax liabilities	1.1	%	(1.8	)%	(2.5	)%
Adjustments to valuation allowances	(1.4	)%	4.6	%	(0.8	)%
Effective income tax expense rate	11.5	%	11.3	%	9.4	%

Worldwide income tax payments

Worldwide income tax payments, net of tax refunds, follow:

2018	$	371
2017	288
2016	272

Components of current and long-term deferred income taxes

Components of noncurrent deferred income taxes follow:

	2018			2017
	Noncurrent assets and liabilities			Noncurrent assets and liabilities
Accruals and other adjustments
Employee benefits	$	481		$	430
Depreciation and amortization	(1,198		)	(1,324		)
Other accruals and adjustments	434			380
Ireland income tax loss carryforwards	1			1
Foreign income tax loss carryforwards	1,915			1,962
Foreign income tax credit carryforwards	396			404
Valuation allowance for income tax loss and income tax    credit carryforwards	(2,032		)	(1,992		)
Other valuation allowances	(53		)	(146		)
Total deferred income taxes	$	(56	)	$	(285	)

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

These carryforwards and their respective expiration dates are summarized below:

	2019 through 2023		2024 through 2028		2029 through 2033		2034 through 2043		Not subject to expiration		Valuation allowance
Ireland income tax loss carryforwards	$	—	$	—	$	—	$	—	$	8	$	—
Ireland deferred income tax assets for income tax loss carryforwards	—		—		—		—		1		(1		)

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

These carryforwards and their respective expiration dates are summarized below:

	2019 through 2023		2024 through 2028		2029 through 2033		2034 through 2043		Not subject to expiration		Valuation allowance
Foreign income tax loss carryforwards	$	929	$	130	$	7,433	$	788	$	3,450	$	—
Foreign deferred income tax assets for income tax loss carryforwards	112		41		686		225		892		(1,790		)
Foreign deferred income tax assets for income tax loss carryforwards after ASU 2013-11	99		36		672		216		892		(1,790		)
Foreign income tax credit carryforwards	116		188		104		120		31		(241		)
Foreign income tax credit carryforwards after ASU 2013-11	80		178		32		75		31		(241		)

Summary of gross unrecognized income tax benefits

A summary of gross unrecognized income tax benefits follows:

	2018			2017			2016
Balance at January 1	$	735		$	629		$	584
Increases and decreases as a result of positions taken during prior years
Transfers from valuation allowances	2			—			—
Other increases, including currency translation	164			10			21
Other decreases, including currency translation	(35		)	(30		)	(24		)
Increases as a result of positions taken during the current year	69			162			90
Decreases relating to settlements with tax authorities	(3		)	(10		)	(19		)
Decreases as a result of a lapse of the applicable statute of limitations	(19		)	(26		)	(23		)
Balance at December 31	$	913		$	735		$	629

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Eaton Shareholders' Equity (Tables)

12 Months Ended

Dec. 31, 2018

Equity [Abstract]

Comprehensive Income (Loss)

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

	2018						2017						2016
	Pre-tax			After-tax			Pre-tax			After-tax			Pre-tax			After-tax
Currency translation and related hedging instruments	$	(613	)	$	(609	)	$	800		$	807		$	(562	)	$	(570	)
Pensions and other postretirement benefits
Prior service credit (cost) arising during the year	(25		)	(20		)	(1		)	—			(2		)	(2		)
Net gain (loss) arising during the year	(358		)	(274		)	215			169			(247		)	(197		)
Currency translation	37			29			(67		)	(53		)	74			62
Other	—			5			—			(5		)	—			(2		)
Amortization of actuarial loss and prior service cost    reclassified to earnings	168			121			188			130			201			133
	(178		)	(139		)	335			241			26			(6		)
Cash flow hedges
Gain (loss) on derivatives designated as cash flow hedges	(8		)	(6		)	(24		)	(15		)	(21		)	(14		)
Changes in cash flow hedges reclassified to earnings	16			13			17			11			8			5
Cash flow hedges, net of reclassification adjustments	8			7			(7		)	(4		)	(13		)	(9		)
Other comprehensive income (loss) attributable to Eaton ordinary shareholders	$	(783	)	$	(741	)	$	1,128		$	1,044		$	(549	)	$	(585	)

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

The changes in Accumulated other comprehensive loss follow:

	Currency translation and related hedging instruments			Pensions and other postretirement benefits			Cash flow hedges			Total
Balance at December 31, 2017	$	(2,255	)	$	(1,139	)	$	(10	)	$	(3,404	)
Other comprehensive income (loss) before     reclassifications	(609		)	(260		)	(6		)	(875		)
Amounts reclassified from Accumulated other    comprehensive loss (income)	—			121			13			134
Net current-period Other comprehensive    income (loss)	(609		)	(139		)	7			(741		)
Balance at December 31, 2018	$	(2,864	)	$	(1,278	)	$	(3	)	$	(4,145	)

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

The reclassifications out of Accumulated other comprehensive loss follow:

	December 31, 2018			Consolidated Statements of Income classification
Amortization of defined benefits pension and other    postretirement benefits items
Actuarial loss and prior service cost	$	(168	)	1
Tax benefit	47
Total, net of tax	(121		)
Gains and (losses) on cash flow hedges
Currency exchange contracts	(16		)	Cost of products sold
Tax benefit	3
Total, net of tax	(13		)
Total reclassifications for the period	$	(134	)

¹ These components of Accumulated other comprehensive loss are included in the computation of net periodic benefit cost. See Note 8 for additional information about defined benefits pension and other postretirement benefits items.

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

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

(Shares in millions)	2018		2017		2016
Net income attributable to Eaton ordinary shareholders	$	2,145	$	2,985	$	1,916
Weighted-average number of ordinary shares outstanding - diluted	436.9		447.0		456.5
Less dilutive effect of equity-based compensation	2.6		2.5		1.5
Weighted-average number of ordinary shares outstanding - basic	434.3		444.5		455.0
Net income per share attributable to Eaton ordinary shareholders
Diluted	$	4.91	$	6.68	$	4.20
Basic	4.93		6.71		4.21

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Equity-Based Compensation (Tables)

12 Months Ended

Dec. 31, 2018

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Summary of RSU and RSA activity

A summary of the RSU and RSA activity for 2018 follows:

(Restricted stock units and awards in millions)	Number of restricted stock units and awards		Weighted-average fair value per unit and award
Non-vested at January 1	2.4		$	62.24
Granted	0.7		81.83
Vested	(0.9	)	63.44
Forfeited	(0.1	)	68.94
Non-vested at December 31	2.1		$	68.56

Information Related to RSUs and RSAs

Information related to RSUs and RSAs follows:

	2018		2017		2016
Pretax expense for RSUs and RSAs	$	59	$	66	$	65
After-tax expense for RSUs and RSAs	46		43		42
Fair value of vested RSUs and RSAs	71		73		71

Schedule of Share-based Payment Award, Performance Share Units (Market-Based), Valuation Assumptions

A summary of the assumptions used in determining fair value of these PSUs follows:

	2018			2017			2016
Expected volatility	22		%	24		%	24		%
Risk-free interest rate	2.38		%	1.46		%	0.88		%
Weighted-average fair value of PSUs granted	$	100.86		$	80.07		$	76.41

(Performance share units in millions)

A summary of these PSUs that vested follows:

(Performance share units in millions)	2018
Percent payout	116	%
Shares vested	0.5

A summary of the 2018 activity for these PSUs follows:

(Performance share units in millions)	Number of performance share units		Weighted-average fair value per unit
Non-vested at January 1	0.8		$	77.97
Granted1	0.3		100.86
Adjusted for performance results achieved2	0.1		76.41
Vested	(0.5	)	76.41
Forfeited	(0.1	)	85.92
Non-vested at December 31	0.6		$	89.95

¹ Performance shares granted assuming the Company will perform at target relative to peers.

² Adjustments for the number of shares vested under the 2016 awards at the end of the three-year performance period ended December 31, 2018, being higher than the target number of shares.

Share-based Compensation, Performance Shares Award Outstanding Activity

A summary of the 2018 activity for these PSUs follows:

(Performance share units in millions)	Number of performance share units	Weighted-average fair value per unit
Non-vested at January 1	0.1	$	56.55
Granted	—	—
Vested	—	—
Forfeited	—	—
Non-vested at December 31	0.1	$	56.55

Information Related to PSUs

Information related to PSUs follows:

	2018		2017		2016
Pretax expense for PSUs	$	28	$	22	$	13
After-tax expense for PSUs	22		13		8

Assumptions used in determining fair value of stock options

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

	2018			2017			2016
Expected volatility	26		%	27		%	27		%
Expected option life in years	6.7			6.6			5.5
Expected dividend yield	3.0		%	2.8		%	2.5		%
Risk-free interest rate	2.6 to 2.9%			1.8 to 2.1%			1.2 to 1.5%
Weighted-average fair value of stock options granted	$	16.93		$	15.11		$	11.80

Summary of stock option activity

A summary of stock option activity follows:

(Options in millions)	Weighted-average exercise price per option		Options		Weighted-average remaining contractual life in years	Aggregate intrinsic value
Outstanding at January 1, 2018	$	62.43	4.6
Granted	81.76		0.6
Exercised	53.26		(0.6	)
Forfeited and canceled	—		—
Outstanding at December 31, 2018	$	65.96	4.6		6.2	$	27.4
Exercisable at December 31, 2018	$	63.39	3.2		5.2	$	22.4
Reserved for future grants at December 31, 2018			13.2

Information related to stock options

Information related to stock options follows:

	2018		2017		2016
Pretax expense for stock options	$	11	$	11	$	14
After-tax expense for stock options	9		8		9
Proceeds from stock options exercised	29		66		74
Income tax benefit related to stock options exercised
Tax benefit classified in operating activities in the Consolidated    Statements of Cash Flows	3		13		5
Excess tax benefit classified in financing activities in the    Consolidated Statements of Cash Flows	—		—		1
Intrinsic value of stock options exercised	17		41		42
Total fair value of stock options vested	$	11	$	11	$	14
Stock options exercised, in millions of options	0.6		1.5		1.9

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Fair Value Measurements (Tables)

12 Months Ended

Dec. 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		Quoted prices in active markets for identical assets (Level 1)		Other observable inputs (Level 2)		Unobservable inputs (Level 3)
2018
Cash	$	283	$	283	$	—	$	—
Short-term investments	157		157		—		—
Net derivative contracts	14		—		14		—
2017
Cash	$	561	$	561	$	—	$	—
Short-term investments	534		534		—		—
Net derivative contracts	36		—		36		—

Summary of carrying value of short-term investments

A summary of the carrying value, which approximates the fair value due to the short-term maturities of these investments, follows:

	2018		2017
Time deposits and certificates of deposit with banks	$	111	$	435
Money market investments	46		99
Total short-term investments	$	157	$	534

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Derivative Financial Instruments and Hedging Activities (Tables)

12 Months Ended

Dec. 31, 2018

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Summary of interest rate swaps

A summary of interest rate swaps outstanding at December 31, 2018, follows:

Fixed-to-Floating Interest Rate Swaps

Notional amount		Fixed interest rate received	Floating interest rate paid	Basis for contracted floating interest rate paid
$	300	6.95%	7.29%	3 month LIBOR + 5.07%
25		8.88%	6.07%	6 month LIBOR + 3.84%
150		3.88%	4.14%	1 month LIBOR + 2.12%
275		3.47%	3.75%	1 month LIBOR + 1.74%
100		8.10%	7.92%	1 month LIBOR + 5.90%
1,400		2.75%	2.57%	1 month LIBOR + 0.58%
200		3.68%	3.05%	1 month LIBOR + 1.07%
25		7.63%	4.73%	6 month LIBOR + 2.48%
50		7.65%	4.84%	6 month LIBOR + 2.57%
25		5.45%	2.55%	6 month LIBOR + 0.28%

Forward Starting Floating-to-Fixed Interest Rate Swaps

Notional amount		Floating interest rate to be received	Fixed interest rate to be paid	Basis for contracted floating interest rate received
$	50	—%	3.10%	3 month LIBOR + 0.00%
50		—%	3.06%	3 month LIBOR + 0.00%

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

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

	Notional amount		Other  current assets		Other noncurrent assets		Other current liabilities		Other noncurrent liabilities		Type of hedge	Term
December 31, 2018
Derivatives designated as hedges
Fixed-to-floating interest rate swaps	$	2,550	$	—	$	22	$	1	$	26	Fair value	3 months to 16 years
Forward starting floating-to-fixed interest rate swaps	100		—		—		—		3		Cash flow	34 years
Currency exchange contracts	951		19		2		11		8		Cash flow	1 to 36 months
Total			$	19	$	24	$	12	$	37
Derivatives not designated as hedges
Currency exchange contracts	$	3,886	$	40			$	20				1 to 12 months
Total			$	40			$	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

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

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

	Gain (loss) recognized in other comprehensive (loss) income						Location of gain (loss) reclassified from Accumulated other comprehensive loss	Gain (loss) reclassified from Accumulated other comprehensive loss
	2018			2017				2018			2017
Derivatives designated as cash flow hedges
Forward starting floating-to-fixed interest rate swaps	$	(4	)	$	(15	)	Interest expense - net	$	—		$	—
Interest rate locks	—			(9		)	Interest expense - net	—			—
Currency exchange contracts	(4		)	—			Cost of products sold	(16		)	(17		)
Total	$	(8	)	$	(24	)		$	(16	)	$	(17	)

Amounts recognized in net income

Amounts recognized in net income follow:

	2018			2017
Derivatives designated as fair value hedges
Fixed-to-floating interest rate swaps	$	(30	)	$	(33	)
Related long-term debt converted to floating interest    rates by interest rate swaps	30			33
	$	—		$	—

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Accounts Receivable and Inventory (Tables)

12 Months Ended

Dec. 31, 2018

Accounts Receivable and Inventory [Abstract]

Components of inventory

The components of inventory follow:

	2018		2017
Raw materials	$	1,077	$	953
Work-in-process	500		471
Finished goods	1,208		1,196
Total inventory	$	2,785	$	2,620

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Business Segment and Geographic Region Information (Tables)

12 Months Ended

Dec. 31, 2018

Segment Reporting Information [Line Items]

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

	2018			2017			2016
Net sales
Electrical Products	$	7,124		$	6,917		$	6,703
Electrical Systems and Services	6,024			5,666			5,662
Hydraulics	2,756			2,468			2,222
Aerospace	1,896			1,744			1,753
Vehicle	3,489			3,326			3,141
eMobility	320			283			266
Total net sales	$	21,609		$	20,404		$	19,747
Segment operating profit
Electrical Products	$	1,311		$	1,233		$	1,186
Electrical Systems and Services	896			770			711
Hydraulics	370			288			198
Aerospace	398			332			335
Vehicle	611			541			471
eMobility	44			50			57
Total segment operating profit	3,630			3,214			2,958
Corporate
Amortization of intangible assets	(382		)	(388		)	(392		)
Interest expense - net	(271		)	(246		)	(233		)
Pension and other postretirement benefits expense	(1		)	(45		)	(60		)
Gain on sale of business	—			1,077			—
Arbitration decision expense	(275		)	—			—
Other corporate expense - net	(277		)	(244		)	(155		)
Income before income taxes	2,424			3,368			2,118
Income tax expense	278			382			199
Net income	2,146			2,986			1,919
Less net income for noncontrolling interests	(1		)	(1		)	(3		)
Net income attributable to Eaton ordinary shareholders	$	2,145		$	2,985		$	1,916

Business Segment Information - Acquisition integration charges

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

	2018		2017		2016
Electrical Products	$	—	$	4	$	3
Electrical Systems and Services	—		—		1
Total	$	—	$	4	$	4

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

	2018		2017		2016
Identifiable assets
Electrical Products	$	2,451	$	2,446	$	2,254
Electrical Systems and Services	2,243		2,141		2,222
Hydraulics	1,473		1,345		1,188
Aerospace	935		938		830
Vehicle	2,289		2,367		1,534
eMobility	139		136		124
Total identifiable assets	9,530		9,373		8,152
Goodwill	13,328		13,568		13,201
Other intangible assets	4,846		5,265		5,514
Corporate	3,388		4,417		3,609
Total assets	$	31,092	$	32,623	$	30,476
Capital expenditures for property, plant and equipment
Electrical Products	$	135	$	130	$	128
Electrical Systems and Services	101		83		78
Hydraulics	106		96		92
Aerospace	38		37		28
Vehicle	143		141		142
eMobility	4		4		6
Total	527		491		474
Corporate	38		29		23
Total expenditures for property, plant and equipment	$	565	$	520	$	497
Depreciation of property, plant and equipment
Electrical Products	$	136	$	138	$	137
Electrical Systems and Services	85		83		82
Hydraulics	64		61		64
Aerospace	26		26		27
Vehicle	104		109		109
eMobility	5		5		4
Total	420		422		423
Corporate	53		54		63
Total depreciation of property, plant and equipment	$	473	$	476	$	486

Geographic Region Information - Net sales and long-lived assets

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

	2018		2017		2016
Net sales
United States	$	12,034	$	11,222	$	10,937
Canada	931		942		898
Latin America	1,442		1,485		1,448
Europe	4,553		4,394		4,228
Asia Pacific	2,649		2,361		2,236
Total	$	21,609	$	20,404	$	19,747
Long-lived assets
United States	$	1,898	$	1,872	$	1,924
Canada	20		20		19
Latin America	286		290		281
Europe	723		769		681
Asia Pacific	540		551		538
Total	$	3,467	$	3,502	$	3,443

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Condensed Consolidating Financial Statements (Tables)

12 Months Ended

Dec. 31, 2018

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

Condensed Consolidating Financial Statements

CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME YEAR ENDED DECEMBER 31, 2018
	Eaton Corporation plc			Eaton Corporation			Guarantors			Other subsidiaries			Consolidating adjustments			Total
Net sales	$	—		$	7,138		$	7,131		$	12,649		$	(5,309	)	$	21,609
Cost of products sold	—			5,644			5,172			9,011			(5,316		)	14,511
Selling and administrative expense	10			1,438			769			1,331			—			3,548
Research and development expense	—			148			149			287			—			584
Interest expense (income) - net	—			273			15			(18		)	1			271
Arbitration decision expense	—			—			275			—			—			275
Other expense (income) - net	(29		)	37			40			(52		)	—			(4		)
Equity in loss (earnings) of    subsidiaries, net of tax	(2,302		)	(1,089		)	(3,555		)	(2,408		)	9,354			—
Intercompany expense (income) - net	176			(212		)	2,215			(2,179		)	—			—
Income (loss) before income taxes	2,145			899			2,051			6,677			(9,348		)	2,424
Income tax expense (benefit)	—			(39		)	(112		)	428			1			278
Net income (loss)	2,145			938			2,163			6,249			(9,349		)	2,146
Less net loss (income) for    noncontrolling interests	—			—			—			(1		)	—			(1		)
Net income (loss) attributable to    Eaton ordinary shareholders	$	2,145		$	938		$	2,163		$	6,248		$	(9,349	)	$	2,145
Other comprehensive income (loss)	(741		)	(110		)	(716		)	(1,575		)	2,401			(741		)
Total comprehensive income (loss) attributable to Eaton    ordinary shareholders	$	1,404		$	828		$	1,447		$	4,673		$	(6,948	)	$	1,404

CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME YEAR ENDED DECEMBER 31, 2017
	Eaton Corporation plc			Eaton Corporation			Guarantors			Other subsidiaries			Consolidating adjustments			Total
Net sales	$	—		$	6,659		$	6,803		$	12,358		$	(5,416	)	$	20,404
Cost of products sold	—			5,276			4,997			8,895			(5,412		)	13,756
Selling and administrative expense	11			1,374			781			1,360			—			3,526
Research and development expense	—			180			179			225			—			584
Interest expense (income) - net	—			245			20			(20		)	1			246
Gain on sale of business	—			560			—			517			—			1,077
Other expense (income) - net	79			38			(67		)	(49		)	—			1
Equity in loss (earnings) of    subsidiaries, net of tax	(3,644		)	(938		)	(4,673		)	(4,619		)	13,874			—
Intercompany expense (income) - net	569			(757		)	1,242			(1,054		)	—			—
Income (loss) before income taxes	2,985			1,801			4,324			8,137			(13,879		)	3,368
Income tax expense (benefit)	—			389			(116		)	111			(2		)	382
Net income (loss)	2,985			1,412			4,440			8,026			(13,877		)	2,986
Less net loss (income) for    noncontrolling interests	—			—			—			(3		)	2			(1		)
Net income (loss) attributable to    Eaton ordinary shareholders	$	2,985		$	1,412		$	4,440		$	8,023		$	(13,875	)	$	2,985
Other comprehensive income (loss)	1,044			80			993			2,281			(3,354		)	1,044
Total comprehensive income (loss) attributable to Eaton    ordinary shareholders	$	4,029		$	1,492		$	5,433		$	10,304		$	(17,229	)	$	4,029

CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME YEAR ENDED DECEMBER 31, 2016
	Eaton Corporation plc			Eaton Corporation			Guarantors			Other subsidiaries			Consolidating adjustments			Total
Net sales	$	—		$	6,447		$	6,603		$	11,706		$	(5,009	)	$	19,747
Cost of products sold	—			5,057			4,865			8,484			(5,010		)	13,396
Selling and administrative expense	9			1,372			771			1,312			—			3,464
Research and development expense	—			196			160			231			—			587
Interest expense (income) - net	—			230			18			(14		)	(1		)	233
Other expense (income) - net	(35		)	7			48			(71		)	—			(51		)
Equity in loss (earnings) of    subsidiaries, net of tax	(2,433		)	(556		)	(3,023		)	(2,656		)	8,668			—
Intercompany expense (income) - net	543			(334		)	1,278			(1,487		)	—			—
Income (loss) before income taxes	1,916			475			2,486			5,907			(8,666		)	2,118
Income tax expense (benefit)	—			24			42			132			1			199
Net income (loss)	1,916			451			2,444			5,775			(8,667		)	1,919
Less net loss (income) for    noncontrolling interests	—			—			—			(5		)	2			(3		)
Net income (loss) attributable to    Eaton ordinary shareholders	$	1,916		$	451		$	2,444		$	5,770		$	(8,665	)	$	1,916
Other comprehensive income (loss)	(585		)	81			(527		)	(1,341		)	1,787			(585		)
Total comprehensive income (loss) attributable to Eaton    ordinary shareholders	$	1,331		$	532		$	1,917		$	4,429		$	(6,878	)	$	1,331

CONDENSED CONSOLIDATING BALANCE SHEETS DECEMBER 31, 2018
	Eaton Corporation plc		Eaton Corporation		Guarantors		Other subsidiaries		Consolidating adjustments			Total
Assets
Current assets
Cash	$	1	$	21	$	—	$	261	$	—		$	283
Short-term investments	—		—		—		157		—			157
Accounts receivable - net	—		483		1,400		1,975		—			3,858
Intercompany accounts receivable	—		1,575		1,851		2,968		(6,394		)	—
Inventory	—		540		766		1,555		(76		)	2,785
Prepaid expenses and other    current assets	—		107		32		354		14			507
Total current assets	1		2,726		4,049		7,270		(6,456		)	7,590
Property, plant and equipment - net	—		843		678		1,946		—			3,467
Other noncurrent assets
Goodwill	—		1,330		6,705		5,293		—			13,328
Other intangible assets	—		128		3,054		1,664		—			4,846
Deferred income taxes	—		340		—		288		(335		)	293
Investment in subsidiaries	16,476		7,658		71,334		25,551		(121,019		)	—
Intercompany loans receivable	1,508		5,843		8,406		59,147		(74,904		)	—
Other assets	—		746		117		705		—			1,568
Total assets	$	17,985	$	19,614	$	94,343	$	101,864	$	(202,714	)	$	31,092
Liabilities and shareholders’    equity
Current liabilities
Short-term debt	$	—	$	388	$	—	$	26	$	—		$	414
Current portion of long-term debt	—		338		—		1		—			339
Accounts payable	—		496		416		1,218		—			2,130
Intercompany accounts payable	32		1,127		3,206		2,029		(6,394		)	—
Accrued compensation	—		135		71		251		—			457
Other current liabilities	30		525		259		1,002		(2		)	1,814
Total current liabilities	62		3,009		3,952		4,527		(6,396		)	5,154
Noncurrent liabilities
Long-term debt	—		5,814		945		7		2			6,768
Pension liabilities	—		383		130		791		—			1,304
Other postretirement benefits    liabilities	—		166		83		72		—			321
Deferred income taxes	—		1		508		175		(335		)	349
Intercompany loans payable	1,816		5,182		66,507		1,399		(74,904		)	—
Other noncurrent liabilities	—		389		291		374		—			1,054
Total noncurrent liabilities	1,816		11,935		68,464		2,818		(75,237		)	9,796
Shareholders’ equity
Eaton shareholders’ equity	16,107		4,670		21,927		94,484		(121,081		)	16,107
Noncontrolling interests	—		—		—		35		—			35
Total equity	16,107		4,670		21,927		94,519		(121,081		)	16,142
Total liabilities and equity	$	17,985	$	19,614	$	94,343	$	101,864	$	(202,714	)	$	31,092

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		2,864		5,117		2,715		(10,704		)	—
Inventory	—		473		737		1,493		(83		)	2,620
Prepaid expenses and other    current assets	—		229		145		277		28			679
Total current assets	8		4,231		7,393		7,464		(10,759		)	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		7,942		75,661		39,556		(138,204		)	—
Intercompany loans receivable	3,122		7,089		2,909		61,427		(74,547		)	—
Other assets	—		748		166		784		—			1,698
Total assets	$	18,175	$	22,679	$	96,748	$	118,855	$	(223,834	)	$	32,623
Liabilities and shareholders’    equity
Current liabilities
Short-term debt	$	—	$	—	$	—	$	6	$	—		$	6
Current portion of long-term debt	—		542		36		—		—			578
Accounts payable	—		533		328		1,305		—			2,166
Intercompany accounts payable	4		4,916		4,381		1,403		(10,704		)	—
Accrued compensation	—		128		65		260		—			453
Other current liabilities	1		566		317		989		(1		)	1,872
Total current liabilities	5		6,685		5,127		3,963		(10,705		)	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		1,137		(74,547		)	—
Other noncurrent liabilities	—		313		273		379		—			965
Total noncurrent liabilities	917		10,834		70,726		2,650		(74,869		)	10,258
Shareholders’ equity
Eaton shareholders’ equity	17,253		5,160		20,895		112,205		(138,260		)	17,253
Noncontrolling interests	—		—		—		37		—			37
Total equity	17,253		5,160		20,895		112,242		(138,260		)	17,290
Total liabilities and equity	$	18,175	$	22,679	$	96,748	$	118,855	$	(223,834	)	$	32,623

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS DECEMBER 31, 2018
	Eaton Corporation plc			Eaton Corporation			Guarantors			Other subsidiaries			Consolidating adjustments			Total
Net cash provided by (used in)    operating activities	$	(26	)	$	(92	)	$	175		$	2,696		$	(95	)	$	2,658
Investing activities
Capital expenditures for property,    plant and equipment	—			(97		)	(93		)	(375		)	—			(565		)
Sales (purchases) of short-term investments - net	—			—			—			355			—			355
Investments in affiliates	(4		)	(36		)	—			—			40			—
Loans to affiliates	—			(100		)	(85		)	(6,441		)	6,626			—
Repayments of loans from affiliates	—			647			1,044			4,455			(6,146		)	—
(Payments) receipts for settlement of currency exchange contracts not designated as hedges - net	—			11			—			(121		)	—			(110		)
Other - net	—			(78		)	23			(23		)	—			(78		)
Net cash provided by (used in)     investing activities	(4		)	347			889			(2,150		)	520			(398		)
Financing activities
Proceeds from borrowings	—			388			—			22			—			410
Payments on borrowings	—			(538		)	(35		)	(1		)	—			(574		)
Proceeds from borrowings from    affiliates	3,756			2,452			318			100			(6,626		)	—
Payments on borrowings from    affiliates	(1,334		)	(3,178		)	(709		)	(925		)	6,146			—
Capital contributions from affiliates	—			—			—			40			(40		)	—
Other intercompany financing    activities	—			476			(651		)	175			—			—
Cash dividends paid	(1,149		)	—			—			—			—			(1,149		)
Cash dividends paid to affiliates	—			—			—			(95		)	95			—
Exercise of employee stock options	29			—			—			—			—			29
Repurchase of shares	(1,271		)	—			—			—			—			(1,271		)
Employee taxes paid from shares    withheld	—			(16		)	(5		)	(3		)	—			(24		)
Other - net	—			(1		)	—			(1		)	—			(2		)
Net cash provided by (used in)    financing activities	31			(417		)	(1,082		)	(688		)	(425		)	(2,581		)
Effect of currency on cash	—			—			—			43			—			43
Total increase (decrease) in cash	1			(162		)	(18		)	(99		)	—			(278		)
Cash at the beginning of the period	—			183			18			360			—			561
Cash at the end of the period	$	1		$	21		$	—		$	261		$	—		$	283

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS DECEMBER 31, 2017
	Eaton Corporation plc			Eaton Corporation			Guarantors			Other subsidiaries			Consolidating adjustments			Total
Net cash provided by (used in)    operating activities	$	258		$	(434	)	$	(56	)	$	4,507		$	(1,609	)	$	2,666
Investing activities
Capital expenditures for property,    plant and equipment	—			(89		)	(113		)	(318		)	—			(520		)
Cash received from sales (paid for acquisitions) of affiliates	—			—			(92		)	92			—			—
Sales (purchases) of short-term investments - net	—			—			—			(298		)	—			(298		)
Investments in affiliates	(190		)	(108		)	—			(90		)	388			—
Return of investments in affiliates	—			—			90			—			(90		)	—
Loans to affiliates	—			(444		)	(415		)	(6,308		)	7,167			—
Repayments of loans from affiliates	—			303			384			3,479			(4,166		)	—
Proceeds from the sales    of businesses	—			338			—			269			—			607
Other - net	—			(45		)	9			30			—			(6		)
Net cash provided by (used in)     investing activities	(190		)	(45		)	(137		)	(3,144		)	3,299			(217		)
Financing activities
Proceeds from borrowings	—			1,000			—			—			—			1,000
Payments on borrowings	—			(1,250		)	(297		)	(7		)	—			(1,554		)
Proceeds from borrowings from    affiliates	2,605			3,130			991			441			(7,167		)	—
Payments on borrowings from    affiliates	(822		)	(2,904		)	(353		)	(87		)	4,166			—
Capital contributions from affiliates	—			—			90			298			(388		)	—
Return of capital to affiliates	—			—			—			(90		)	90			—
Other intercompany financing    activities	—			616			574			(1,190		)	—			—
Cash dividends paid	(1,068		)	—			—			—			—			(1,068		)
Cash dividends paid to affiliates	—			—			(800		)	(809		)	1,609			—
Exercise of employee stock options	66			—			—			—			—			66
Repurchase of shares	(850		)	—			—			—			—			(850		)
Employee taxes paid from shares    withheld	—			(14		)	(5		)	(3		)	—			(22		)
Other - net	—			(8		)	(1		)	(5		)	—			(14		)
Net cash provided by (used in)    financing activities	(69		)	570			199			(1,452		)	(1,690		)	(2,442		)
Effect of currency on cash	—			—			—			11			—			11
Total increase (decrease) in cash	(1		)	91			6			(78		)	—			18
Cash at the beginning of the period	1			92			12			438			—			543
Cash at the end of the period	$	—		$	183		$	18		$	360		$	—		$	561

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS DECEMBER 31, 2016
	Eaton Corporation plc			Eaton Corporation			Guarantors			Other subsidiaries			Consolidating adjustments			Total
Net cash provided by (used in)    operating activities	$	(253	)	$	(9	)	$	(209	)	$	3,041		$	—		$	2,570
Investing activities
Capital expenditures for property,    plant and equipment	—			(92		)	(118		)	(287		)	—			(497		)
Sales (purchases) of short-term    investments - net	—			—			2			(42		)	—			(40		)
Investments in affiliates	(1,250		)	(8		)	(120		)	(1,370		)	2,748			—
Return of investments in affiliates	—			—			47			—			(47		)	—
Loans to affiliates	—			(251		)	(1,013		)	(7,850		)	9,114			—
Repayments of loans from affiliates	—			1,293			335			5,616			(7,244		)	—
Other - net	—			(9		)	42			(25		)	—			8
Net cash provided by (used in)    investing activities	(1,250		)	933			(825		)	(3,958		)	4,571			(529		)
Financing activities
Proceeds from borrowings	—			21			610			—			—			631
Payments on borrowings	—			(408		)	(233		)	(12		)	—			(653		)
Proceeds from borrowings from    affiliates	3,843			4,045			1,120			106			(9,114		)	—
Payments on borrowings from    affiliates	(646		)	(4,712		)	(1,844		)	(42		)	7,244			—
Capital contribution from affiliates	—			—			1,370			1,378			(2,748		)	—
Return of capital to affiliates	—			—			—			(47		)	47			—
Other intercompany financing    activities	—			206			21			(227		)	—			—
Cash dividends paid	(1,037		)	—			—			—			—			(1,037		)
Exercise of employee stock options	74			—			—			—			—			74
Repurchase of shares	(730		)	—			—			—			—			(730		)
Employee taxes paid from shares    withheld	—			(12		)	(3		)	(3		)	—			(18		)
Other - net	—			1			(4		)	(2		)	—			(5		)
Net cash provided by (used in)    financing activities	1,504			(859		)	1,037			1,151			(4,571		)	(1,738		)
Effect of currency on cash	—			—			—			(28		)	—			(28		)
Total increase (decrease) in cash	1			65			3			206			—			275
Cash at the beginning of the period	—			27			9			232			—			268
Cash at the end of the period	$	1		$	92		$	12		$	438		$	—		$	543

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Summary of Significant Accounting Policies - General Information and Basis of Presentation (Details) $ in Millions	12 Months Ended
	Dec. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)	Dec. 31, 2016 USD ($)	Jul. 31, 2017
Accounting Policies [Abstract]
Net sales	$ 21,609	$ 20,404	$ 19,747
Number of Eaton employees	99,000
Countries of operation	59
Countries where products are sold	175
Investments in associate companies [Line Items]
Equity method of accounting, ownership interest (in percentage)				50.00%
Minimum [Member]
Investments in associate companies [Line Items]
Equity method of accounting, ownership interest (in percentage)	20.00%
Maximum [Member]
Investments in associate companies [Line Items]
Equity method of accounting, ownership interest (in percentage)	50.00%

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Summary of Significant Accounting Policies - Other Long-Lived Assets (Details)	12 Months Ended
	Dec. 31, 2018
Patents and technology [Member]
Long-Lived Assets [Line Items]
Weighted average amortization period for intangible assets (in years)	17 years
Customer relationships [Member]
Long-Lived Assets [Line Items]
Weighted average amortization period for intangible assets (in years)	17 years
Trademarks [Member]
Long-Lived Assets [Line Items]
Weighted average amortization period for intangible assets (in years)	17 years
Buildings [Member]
Long-Lived Assets [Line Items]
Property, plant and equipment useful life (in years)	40 years
Machinery and equipment [Member] | Minimum [Member]
Long-Lived Assets [Line Items]
Property, plant and equipment useful life (in years)	3 years
Machinery and equipment [Member] | Maximum [Member]
Long-Lived Assets [Line Items]
Property, plant and equipment useful life (in years)	10 years
Software [Member] | Maximum [Member]
Long-Lived Assets [Line Items]
Property, plant and equipment useful life (in years)	15 years

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Summary of Significant Accounting Policies - Recently Issued Accounting Pronouncements (Details) - USD ($) $ in Millions	Jan. 01, 2019	Jan. 01, 2018
Accounting Standards Update 2016-16 [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Cumulative effect on retained earnings from new method of accounting		$ (199)
Subsequent Event [Member] | Accounting Standards Update 2016-02 [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Cumulative effect on retained earnings from new method of accounting	$ (1)
Subsequent Event [Member] | Minimum [Member] | Accounting Standards Update 2016-02 [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Operating Lease, Liability	400
Operating Lease, Right-of-Use Asset	400
Subsequent Event [Member] | Maximum [Member] | Accounting Standards Update 2016-02 [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Operating Lease, Liability	500
Operating Lease, Right-of-Use Asset	$ 500

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Summary of Significant Accounting Policies Summary of Significant Accounting Policies - Narrative (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Jan. 01, 2018
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Selling, General and Administrative Expense	$ 3,548	$ 3,526	$ 3,464
Defined Benefit Plan, Lower Corridor	8.00%
Defined Benefit Plan, Upper Corridor	10.00%
Defined Benefit Plan, Weighted Average Amortization Period of Gain (Loss)	11 years
Accounting Standards Update 2016-16 [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Cumulative Effect of New Accounting Principle in Period of Adoption				$ 199
Accounting Standards Update 2017-07 [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Selling, General and Administrative Expense	$ 6	$ (39)	$ (56)

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Summary of Significant Accounting Policies Summary of Significant Accounting Policies - Balance Sheet (Details) - USD ($) $ in Millions	Dec. 31, 2018	Jan. 01, 2018	Dec. 31, 2017
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Accounts receivable - net	$ 3,858	$ 3,844	$ 3,943
Prepaid expenses and other current assets	507	808	679
Deferred Tax Assets, Net of Valuation Allowance, Noncurrent	293	254	253
Other current liabilities	1,814	1,905	1,872
Stockholders' Equity Attributable to Parent	16,107	17,251	17,253
Calculated under Revenue Guidance in Effect before Topic 606 [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Accounts receivable - net	3,918		3,943
Prepaid expenses and other current assets	398		679
Deferred Tax Assets, Net of Valuation Allowance, Noncurrent	292		253
Other current liabilities	$ 1,788		1,872
Stockholders' Equity Attributable to Parent			$ 17,253
Accounting Standards Update 2014-09 [Member] | Difference between Revenue Guidance in Effect before and after Topic 606 [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Accounts receivable - net		(99)
Prepaid expenses and other current assets		129
Deferred Tax Assets, Net of Valuation Allowance, Noncurrent		1
Other current liabilities		33
Stockholders' Equity Attributable to Parent		$ (2)

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Sale and Acquisition of Businesses - Narrative (Details) - USD ($) $ in Millions			12 Months Ended
	Jan. 31, 2019	Jul. 31, 2017	Dec. 31, 2018	Sep. 30, 2018	Dec. 31, 2017	Dec. 31, 2016
Business Acquisition [Line Items]
Interest in business sold		50.00%
Proceeds from sale of business		$ 600
Gain on sale of business		1,077			$ 1,077
Pre-tax gain on sale of business		533
Revaluation gain		$ 544
Equity method of accounting, ownership interest (in percentage)		50.00%
Gain on sale of business, net		$ 843	$ 0		$ 843	$ 0
Ulusoy Elektrik Imalat Taahhut ve Ticaret A.S. [Member]
Business Acquisition [Line Items]
Business Acquisition, Pro Forma Revenue				$ 126
Subsequent Event [Member] | Ulusoy Elektrik Imalat Taahhut ve Ticaret A.S. [Member]
Business Acquisition [Line Items]
Business Acquisition, Percentage of Voting Interests Acquired	82.275%
Payments to Acquire Businesses, Gross	$ 214

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Acquisition Integration Charges - Transaction Costs (Details) - USD ($) $ / shares in Units, $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Acquisition Integration Charges and Transaction Costs [Line Items]
Acquisition integration charges	$ 0	$ 4	$ 4
Income taxes	0	2	1
Total after income taxes	$ 0	$ 2	$ 3
Per ordinary share - diluted	$ 0.00	$ 0.00	$ 0.01
Electrical Products [Member]
Acquisition Integration Charges and Transaction Costs [Line Items]
Acquisition integration charges	$ 0	$ 4	$ 3
Electrical Systems and Services [Member]
Acquisition Integration Charges and Transaction Costs [Line Items]
Acquisition integration charges	$ 0	$ 0	$ 1

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Revenue Recognition Narrative (Details) $ in Millions	12 Months Ended
	Dec. 31, 2018 USD ($) segment	Jan. 01, 2018 USD ($)	Dec. 31, 2017 USD ($)
Revenue from Contract with Customer [Abstract]
Backlog of unsatisfied or partially satisfied obligations	$ 5,300
Accounts receivables from customers	$ 3,402		$ 3,399
Sales recognized over time, as a percent of Consolidated Net Sales (less than)	5.00%
Number of Operating Segments | segment	6
Unbilled receivables	$ 94	$ 117
Backlog expected to be recognized in the next twelve months (as a percent)	87.00%

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Revenue Recognition Schedule of Disaggregation of Sales (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Disaggregation of Revenue [Line Items]
Net sales	$ 21,609	$ 20,404	$ 19,747
UNITED STATES
Disaggregation of Revenue [Line Items]
Net sales	12,034	11,222	10,937
Electrical Products [Member]
Disaggregation of Revenue [Line Items]
Net sales	7,124	6,917	6,703
Electrical Products [Member] | UNITED STATES
Disaggregation of Revenue [Line Items]
Net sales	4,112
Electrical Products [Member] | Countries Other Than The United States [Member]
Disaggregation of Revenue [Line Items]
Net sales	3,012
Electrical Systems and Services [Member]
Disaggregation of Revenue [Line Items]
Net sales	6,024	5,666	5,662
Electrical Systems and Services [Member] | UNITED STATES
Disaggregation of Revenue [Line Items]
Net sales	3,936
Electrical Systems and Services [Member] | Countries Other Than The United States [Member]
Disaggregation of Revenue [Line Items]
Net sales	2,088
Hydraulics [Member]
Disaggregation of Revenue [Line Items]
Net sales	2,756	2,468	2,222
Hydraulics [Member] | UNITED STATES
Disaggregation of Revenue [Line Items]
Net sales	1,190
Hydraulics [Member] | Countries Other Than The United States [Member]
Disaggregation of Revenue [Line Items]
Net sales	1,566
Aerospace [Member]
Disaggregation of Revenue [Line Items]
Net sales	1,896	1,744	1,753
Aerospace [Member] | Original Equipment Manufacturers [Member]
Disaggregation of Revenue [Line Items]
Net sales	1,085
Aerospace [Member] | Aftermarket, Distribution And End User [Member]
Disaggregation of Revenue [Line Items]
Net sales	811
Vehicle [Member]
Disaggregation of Revenue [Line Items]
Net sales	3,489	3,326	3,141
Vehicle [Member] | Commercial [Member]
Disaggregation of Revenue [Line Items]
Net sales	1,759
Vehicle [Member] | Passenger And Light Duty [Member]
Disaggregation of Revenue [Line Items]
Net sales	1,730
eMobility [Member]
Disaggregation of Revenue [Line Items]
Net sales	$ 320	$ 283	$ 266

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Revenue Recognition Schedule of Changes in Deferred Revenue Liabilities (Details) $ in Millions	12 Months Ended
	Dec. 31, 2018 USD ($)
Movement in Deferred Revenue [Roll Forward]
Beginning Balance	$ 227
Customer deposits and billings	967
Revenue recognized in the period	(939)
Translation	(7)
Ending Balance	$ 248

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Revenue Recognition Schedule of the Impact of Adoption of ASU 2014-09 (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Jan. 01, 2018
Consolidated Statements of Income
Net sales	$ 21,609	$ 20,404	$ 19,747
Cost of products sold	14,511	13,756	13,396
Income before income taxes	2,424	3,368	2,118
Income tax expense	278	382	199
Net income	2,146	2,986	1,919
Net income attributable to Eaton ordinary shareholders	2,145
Assets
Accounts receivable - net	3,858	3,943		$ 3,844
Inventory	2,785	2,620
Prepaid expenses and other current assets	507	679		808
Deferred income taxes	293	253		254
Liabilities and shareholders' equity
Other current liabilities	1,814	1,872		$ 1,905
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	16,142	17,290	$ 14,998
Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | Accounting Standards Update 2017-07 [Member]
Consolidated Statements of Income
Net sales	(30)
Cost of products sold	(20)
Income before income taxes	(10)
Income tax expense	(2)
Net income	(8)
Net income attributable to Eaton ordinary shareholders	(8)
Assets
Accounts receivable - net	60
Inventory	18
Prepaid expenses and other current assets	(109)
Deferred income taxes	(1)
Liabilities and shareholders' equity
Other current liabilities	(26)
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	(6)
Calculated under Revenue Guidance in Effect before Topic 606 [Member]
Consolidated Statements of Income
Net sales	21,579
Cost of products sold	14,491
Income before income taxes	2,414
Income tax expense	276
Net income	2,138
Net income attributable to Eaton ordinary shareholders	2,137
Assets
Accounts receivable - net	3,918	3,943
Inventory	2,803
Prepaid expenses and other current assets	398	679
Deferred income taxes	292	253
Liabilities and shareholders' equity
Other current liabilities	1,788	$ 1,872
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	$ 16,136

XML

Restructuring Charges - Restructuring Roll Forward (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Restructuring Reserve [Roll Forward]
Beginning Balance	$ 72	$ 114
Liability recognized		116
Payments	(40)	(141)
Other adjustments	(17)	(17)
Ending Balance	15	72
Workforce reductions [Member]
Restructuring Reserve [Roll Forward]
Beginning Balance	67	113
Liability recognized		57
Payments	(36)	(102)
Other adjustments	(17)	(1)
Ending Balance	14	67
Plant closings and other [Member]
Restructuring Reserve [Roll Forward]
Beginning Balance	5	1
Liability recognized		59
Payments	(4)	(39)
Other adjustments	0	(16)
Ending Balance	$ 1	$ 5

XML

Goodwill and Other Intangible Assets - Schedule of Goodwill by Segment (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Goodwill [Roll Forward]
Beginning Balance	$ 13,568	$ 13,201
Goodwill written off from sale of business		(55)
Translation	(240)	422
Ending Balance	13,328	13,568
Electrical Products [Member]
Goodwill [Roll Forward]
Beginning Balance	6,678	6,418
Goodwill written off from sale of business		0
Translation	(116)	260
Ending Balance	6,562	6,678
Electrical Systems and Services [Member]
Goodwill [Roll Forward]
Beginning Balance	4,311	4,203
Goodwill written off from sale of business		(3)
Translation	(70)	111
Ending Balance	4,241	4,311
Hydraulics [Member]
Goodwill [Roll Forward]
Beginning Balance	1,257	1,221
Goodwill written off from sale of business		0
Translation	(45)	36
Ending Balance	1,212	1,257
Aerospace [Member]
Goodwill [Roll Forward]
Beginning Balance	947	938
Goodwill written off from sale of business		0
Translation	(6)	9
Ending Balance	941	947
Vehicle [Member]
Goodwill [Roll Forward]
Beginning Balance	294	342
Goodwill written off from sale of business		(52)
Translation	(2)	4
Ending Balance	292	294
eMobility [Member]
Goodwill [Roll Forward]
Beginning Balance	81	79
Goodwill written off from sale of business		0
Translation	(1)	2
Ending Balance	$ 80	$ 81

XML

Goodwill and Other Intangible Assets - Schedule of Other Intangible Assets by Major Class (Details) - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017
Summary of other intangible assets
Intangible assets not subject to amortization - trademarks	$ 1,626	$ 1,654
Intangible assets subject to amortization
Historical cost	5,916	6,217
Accumulated amortization	2,696	2,606
Customer relationships [Member]
Intangible assets subject to amortization
Historical cost	3,463	3,586
Accumulated amortization	1,600	1,475
Patents and technology [Member]
Intangible assets subject to amortization
Historical cost	1,329	1,395
Accumulated amortization	646	628
Trademarks [Member]
Intangible assets subject to amortization
Historical cost	1,032	1,137
Accumulated amortization	419	473
Other [Member]
Intangible assets subject to amortization
Historical cost	92	99
Accumulated amortization	$ 31	$ 30

XML

Goodwill and Other Intangible Assets - Intangible Assets Amortization Expense (Details) $ in Millions	12 Months Ended
	Dec. 31, 2018 USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
2018	$ 368
2019	357
2020	352
2021	341
2022	332
2023	$ 283

XML

Debt - Summary of Long-term Debt (Details) - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017
Debt Instrument [Line Items]
Total long-term debt	$ 7,107	$ 7,745
Less current portion of long-term debt	(339)	(578)
Long-term debt less current portion	6,768	7,167
Notes [Member] | Notes due 2018 [Member]
Debt Instrument [Line Items]
Notes	$ 0	$ 450
Debt instrument, stated interest rate (in percentage)	5.60%	5.60%
Related long term debt converted to floating interest rates by interest rate swaps	$ 415
Notes [Member] | Notes due 2019 [Member]
Debt Instrument [Line Items]
Notes	$ 300	$ 300
Debt instrument, stated interest rate (in percentage)	6.95%	6.95%
Related long term debt converted to floating interest rates by interest rate swaps	$ 300
Notes [Member] | Notes due 2021 [Member]
Debt Instrument [Line Items]
Notes	$ 300	$ 300
Debt instrument, stated interest rate (in percentage)	3.47%	3.47%
Related long term debt converted to floating interest rates by interest rate swaps	$ 275
Notes [Member] | Notes due 2023 [Member]
Debt Instrument [Line Items]
Notes	$ 300	$ 300
Debt instrument, stated interest rate (in percentage)	3.68%	3.68%
Related long term debt converted to floating interest rates by interest rate swaps	$ 200
Notes [Member] | Senior notes due 2024 [Member]
Debt Instrument [Line Items]
Long term debt debentures	$ 629	$ 659
Debt instrument, stated interest rate (in percentage)	0.75%	0.75%
Notes [Member] | Notes due 2037 [Member]
Debt Instrument [Line Items]
Notes	$ 240	$ 240
Debt instrument, stated interest rate (in percentage)	5.80%	5.80%
Notes [Member] | Notes due from 2019 to 2035 [Member]
Debt Instrument [Line Items]
Notes	$ 203	$ 239
Related long term debt converted to floating interest rates by interest rate swaps	$ 50	$ 50
Notes [Member] | Notes due from 2019 to 2035 [Member] | Minimum [Member]
Debt Instrument [Line Items]
Debt instrument, stated interest rate (in percentage)	5.25%	5.25%
Notes [Member] | Notes due from 2019 to 2035 [Member] | Maximum [Member]
Debt Instrument [Line Items]
Debt instrument, stated interest rate (in percentage)	8.875%	8.875%
Debenture [Member] | Debentures due 2020 [Member]
Debt Instrument [Line Items]
Long term debt debentures	$ 239	$ 239
Debt instrument, stated interest rate (in percentage)	3.875%	3.875%
Related long term debt converted to floating interest rates by interest rate swaps	$ 150
Debenture [Member] | Debentures due 2022 [Member]
Debt Instrument [Line Items]
Long term debt debentures	$ 100	$ 100
Debt instrument, stated interest rate (in percentage)	8.10%	8.10%
Related long term debt converted to floating interest rates by interest rate swaps	$ 100
Debenture [Member] | Debentures due 2025 [Member]
Debt Instrument [Line Items]
Long term debt debentures	$ 145	$ 145
Debt instrument, stated interest rate (in percentage)	6.50%	6.50%
Debenture [Member] | Debentures due 2029 [Member]
Debt Instrument [Line Items]
Long term debt debentures	$ 200	$ 200
Debt instrument, stated interest rate (in percentage)	7.65%	7.65%
Related long term debt converted to floating interest rates by interest rate swaps	$ 50
Debenture [Member] | Debentures due 2034 [Member]
Debt Instrument [Line Items]
Long term debt debentures	$ 136	$ 136
Debt instrument, stated interest rate (in percentage)	5.45%	5.45%
Related long term debt converted to floating interest rates by interest rate swaps	$ 25
Senior Notes [Member] | Senior notes due 2022 [Member]
Debt Instrument [Line Items]
Senior Notes, Noncurrent	$ 1,600	$ 1,600
Debt instrument, stated interest rate (in percentage)	2.75%	2.75%
Related long term debt converted to floating interest rates by interest rate swaps	$ 1,400
Senior Notes [Member] | Senior notes due 2027 [Member]
Debt Instrument [Line Items]
Notes	$ 700	$ 700
Debt instrument, stated interest rate (in percentage)	3.10%	3.10%
Senior Notes [Member] | Senior notes due 2032 [Member]
Debt Instrument [Line Items]
Senior Notes, Noncurrent	$ 700	$ 700
Debt instrument, stated interest rate (in percentage)	4.00%	4.00%
Senior Notes [Member] | Senior notes due 2042 [Member]
Debt Instrument [Line Items]
Senior Notes, Noncurrent	$ 1,000	$ 1,000
Debt instrument, stated interest rate (in percentage)	4.15%	4.15%
Senior Notes [Member] | Senior notes due 2047 [Member]
Debt Instrument [Line Items]
Notes	$ 300	$ 300
Debt instrument, stated interest rate (in percentage)	3.92%	3.92%
Japanese Yen notes payable [Member] | Japanese Yen notes due 2018 [Member]
Debt Instrument [Line Items]
Notes	$ 0	$ 88
Debt instrument, stated interest rate (in percentage)	4.215%	4.215%
Other long-term debt [Member]
Debt Instrument [Line Items]
Other	$ 15	$ 49

XML

Debt - Narrative (Details) - USD ($)									12 Months Ended
	Dec. 17, 2018	May 15, 2018	Nov. 17, 2017	Nov. 02, 2017	Sep. 15, 2017	Jun. 29, 2017	Mar. 15, 2017	Oct. 14, 2016	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Debt Instrument [Line Items]
Payments on borrowings									$ 574,000,000	$ 1,554,000,000	$ 653,000,000
Short-term debt									$ 414,000,000	$ 6,000,000
Face amount					$ 1,000,000,000
Proceeds from debt					$ 993,000,000
Tranche One [Member]
Debt Instrument [Line Items]
Debt instrument, stated interest rate (in percentage)					3.10%
Face amount					$ 700,000,000
Tranche Two [Member]
Debt Instrument [Line Items]
Debt instrument, stated interest rate (in percentage)					3.90%
Face amount					$ 300,000,000
Notes [Member] | Notes due 2017 [Member]
Debt Instrument [Line Items]
Debt instrument, stated interest rate (in percentage)										5.30%
Payments on borrowings							$ 250,000,000
Notes [Member] | Senior notes due 2024 [Member]
Debt Instrument [Line Items]
Debt instrument, stated interest rate (in percentage)									0.75%	0.75%
Notes [Member] | Notes due 2018 [Member]
Debt Instrument [Line Items]
Debt instrument, stated interest rate (in percentage)									5.60%	5.60%
Payments on borrowings		$ 450,000,000
Notes [Member] | Notes due 2021 [Member]
Debt Instrument [Line Items]
Debt instrument, stated interest rate (in percentage)									3.47%	3.47%
Notes [Member] | Notes due 2023 [Member]
Debt Instrument [Line Items]
Debt instrument, stated interest rate (in percentage)									3.68%	3.68%
Japanese Yen notes payable [Member] | Japanese Yen notes due 2018 [Member]
Debt Instrument [Line Items]
Debt instrument, stated interest rate (in percentage)									4.215%	4.215%
Payments on borrowings	$ 88,000,000
Debenture [Member] | Debentures due 2020 [Member]
Debt Instrument [Line Items]
Debt instrument, stated interest rate (in percentage)									3.875%	3.875%
Debenture [Member] | Debenture due 2017 [Member]
Debt Instrument [Line Items]
Debt instrument, stated interest rate (in percentage)										6.10%
Payments on borrowings						$ 289,000,000
Senior Notes [Member] | Senior notes due 2017 [Member]
Debt Instrument [Line Items]
Debt instrument, stated interest rate (in percentage)										1.50%
Payments on borrowings				$ 1,000,000,000
Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Credit facility, maximum borrowing capacity									$ 2,000,000,000
Revolving Credit Facility [Member] | Refinanced three-year revolving credit facility [Member]
Debt Instrument [Line Items]
Credit facility, maximum borrowing capacity			$ 500,000,000
Revolving credit facility, term (in years)			3 years
Revolving Credit Facility [Member] | Refinanced Five-Year Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Credit facility, maximum borrowing capacity			$ 750,000,000
Revolving credit facility, term (in years)			5 years
Revolving Credit Facility [Member] | Five-Year Revolving Credit Facility, Expires October 14, 2021 [Member]
Debt Instrument [Line Items]
Credit facility, maximum borrowing capacity								$ 750,000,000
Revolving credit facility, term (in years)								5 years
Letter of Credit [Member]
Debt Instrument [Line Items]
Credit facility, maximum borrowing capacity									1,079,000,000
Letters of credit outstanding, amount									265,000,000
UNITED STATES | Commercial Paper [Member]
Debt Instrument [Line Items]
Short-term debt									$ 388,000,000
Weighted average interest rate									2.97%
Foreign [Member]
Debt Instrument [Line Items]
Short-term debt									$ 26,000,000

XML

Debt - Schedule of Maturities of Long-term Debt (Details) $ in Millions	Dec. 31, 2018 USD ($)
Debt Disclosure [Abstract]
2019	$ 339
2020	241
2021	302
2022	1,701
2023	$ 301

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Debt - Interest Paid on Debt (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Debt Disclosure [Abstract]
Interest paid on debt	$ 313	$ 293	$ 266

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Commitments and Contingencies - Narrative (Details) $ in Millions				12 Months Ended
	Nov. 28, 2018 USD ($)	Aug. 23, 2018 USD ($)	Jul. 11, 2018 USD ($)	Dec. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)	Dec. 31, 2016 USD ($)
Loss Contingencies [Line Items]
Insurance Recoveries						$ 68
Number of environmental remediation sites world wide				113
Number of environmental remediation sites world wide with individual significance				0
Accrual for environmental loss contingencies				$ 116	$ 120
Current and long-term warranty accruals [Roll Forward]
Balance at January 1				188	180	195
Provision				139	163	117
Settled				(145)	(156)	(130)
Other				(6)	1	(2)
Balance at December 31				176	188	180
Minimum rental commitments under noncancelable operating leases
2019				165
2020				133
2021				106
2022				75
2023				53
Thereafter				110
Total noncancelable lease commitments				642
Summary of Rental Expense
Rental expense				$ 232	$ 222	$ 220
Pneumo Abex Case [Member]
Loss Contingencies [Line Items]
Loss Contingency, Damages Sought, Value			$ 347
Litigation Settlement, Amount Awarded to Other Party		$ 293
Payments for Legal Settlements	$ 297

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Retirement Benefits Plans - Obligations and Funded Status (Details) - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Funded status
Fair value of plan assets	$ 4,628	$ 5,312
Pension plan [Member] | United States pension liabilities [Member]
Funded status
Fair value of plan assets	3,068	3,585	$ 2,969
Benefit obligations	(3,633)	(3,961)	(3,771)
Funded status	(565)	(376)
Amounts recognized in the Consolidated Balance Sheets
Non-current assets	0	82
Current liabilities	(20)	(15)
Non-current liabilities	(545)	(443)
Total	(565)	(376)
Amounts recognized in Accumulated other comprehensive loss (pretax)
Net actuarial (gain) loss	1,153	1,059
Prior service cost (credit)	7	4
Total	1,160	1,063	1,235
Pension plan [Member] | Non-United States pension liabilities [Member]
Funded status
Fair value of plan assets	1,560	1,727	1,478
Benefit obligations	(2,285)	(2,399)	(2,314)
Funded status	(725)	(672)
Amounts recognized in the Consolidated Balance Sheets
Non-current assets	58	136
Current liabilities	(24)	(25)
Non-current liabilities	(759)	(783)
Total	(725)	(672)
Amounts recognized in Accumulated other comprehensive loss (pretax)
Net actuarial (gain) loss	683	596
Prior service cost (credit)	27	8
Total	710	604	779
Other postretirement liabilities [Member]
Funded status
Fair value of plan assets	37	55	74
Benefit obligations	(378)	(448)	(473)
Funded status	(341)	(393)
Amounts recognized in the Consolidated Balance Sheets
Non-current assets	0	0
Current liabilities	(20)	(31)
Non-current liabilities	(321)	(362)
Total	(341)	(393)
Amounts recognized in Accumulated other comprehensive loss (pretax)
Net actuarial (gain) loss	(20)	19
Prior service cost (credit)	(32)	(46)
Total	$ (52)	$ (27)	$ (39)

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Retirement Benefits Plans - Change in Benefit Obligations (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Pension plan [Member] | United States pension liabilities [Member]
Change in benefit obligations
Balance at January 1	$ 3,961	$ 3,771
Service cost	100	96	$ 111
Interest cost	122	123	125
Actuarial (gain) loss	(272)	271
Gross benefits paid	(282)	(301)
Currency translation	0	0
Plan amendments	4	1
Other	0	0
Balance at December 31	3,633	3,961	3,771
Accumulated benefit obligation	3,506	3,802
Pension plan [Member] | Non-United States pension liabilities [Member]
Change in benefit obligations
Balance at January 1	2,399	2,314
Service cost	63	71	63
Interest cost	52	55	62
Actuarial (gain) loss	(16)	(148)
Gross benefits paid	(112)	(97)
Currency translation	(124)	223
Plan amendments	21	0
Other	2	(19)
Balance at December 31	2,285	2,399	2,314
Accumulated benefit obligation	2,175	2,283
Other postretirement liabilities [Member]
Change in benefit obligations
Balance at January 1	448	473
Service cost	2	3	4
Interest cost	13	14	17
Actuarial (gain) loss	(39)	2
Gross benefits paid	(67)	(74)
Currency translation	(4)	3
Plan amendments	0	0
Other	25	27
Balance at December 31	$ 378	$ 448	$ 473

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Retirement Benefits Plans - Change in Plan Assets (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Change in plan assets
Balance at January 1	$ 5,312
Balance at December 31	4,628	$ 5,312
Pension plan [Member]
Change in plan assets
Employer contributions	126	473	$ 262
Pension plan [Member] | United States pension liabilities [Member]
Change in plan assets
Balance at January 1	3,585	2,969
Actual return on plan assets	(252)	543
Employer contributions	17	374	160
Gross benefits paid	(282)	(301)
Currency translation	0	0
Other	0	0
Balance at December 31	3,068	3,585	2,969
Pension plan [Member] | Non-United States pension liabilities [Member]
Change in plan assets
Balance at January 1	1,727	1,478
Actual return on plan assets	(72)	131
Employer contributions	109	99	102
Gross benefits paid	(112)	(97)
Currency translation	(93)	135
Other	1	(19)
Balance at December 31	1,560	1,727	1,478
Other postretirement liabilities [Member]
Change in plan assets
Balance at January 1	55	74
Actual return on plan assets	0	8
Employer contributions	25	20
Gross benefits paid	(67)	(74)
Currency translation	0	0
Other	24	27
Balance at December 31	$ 37	$ 55	$ 74

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Retirement Benefits Plans - Components of Pension Plans with Accumulated Benefit Obligation in Excess of Plan Assets (Details) - Pension plan [Member] - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017
United States pension liabilities [Member]
Components of pension plans with an accumulated benefit obligation in excess of plan assets
Projected benefit obligation	$ 3,633	$ 3,540
Accumulated benefit obligation	3,506	3,380
Fair value of plan assets	3,068	3,081
Non-United States pension liabilities [Member]
Components of pension plans with an accumulated benefit obligation in excess of plan assets
Projected benefit obligation	905	966
Accumulated benefit obligation	853	911
Fair value of plan assets	$ 158	$ 175

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Retirement Benefits Plans - Changes in Pension and Other Postretirement Liabilities Recognized in AOCI (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Changes in pension and other postretirement benefit liabilities recognized in Accumulated other comprehensive loss
Prior service cost arising during the year	$ 25	$ 1	$ 2
Less amounts included in expense during the year	358	(215)	247
Net change for the year	0	0	0
Pension plan [Member] | United States pension liabilities [Member]
Changes in pension and other postretirement benefit liabilities recognized in Accumulated other comprehensive loss
Balance at January 1	1,063	1,235
Prior service cost arising during the year	4	1
Net loss (gain) arising during the year	233	(28)
Currency translation	0	0
Less amounts included in expense during the year	(140)	(145)
Net change for the year	97	(172)
Balance at December 31	1,160	1,063	1,235
Pension plan [Member] | Non-United States pension liabilities [Member]
Changes in pension and other postretirement benefit liabilities recognized in Accumulated other comprehensive loss
Balance at January 1	604	779
Prior service cost arising during the year	21	0
Net loss (gain) arising during the year	161	(185)
Currency translation	(35)	66
Less amounts included in expense during the year	(41)	(56)
Net change for the year	106	(175)
Balance at December 31	710	604	779
Other postretirement liabilities [Member]
Changes in pension and other postretirement benefit liabilities recognized in Accumulated other comprehensive loss
Balance at January 1	(27)	(39)
Prior service cost arising during the year	0	0
Net loss (gain) arising during the year	(36)	(2)
Currency translation	(2)	1
Less amounts included in expense during the year	13	13
Net change for the year	(25)	12
Balance at December 31	$ (52)	$ (27)	$ (39)

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Retirement Benefits Plans - Benefits Expense (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Pension plan [Member] | United States pension liabilities [Member]
Defined Benefit Plans and Other Postretirement Benefit Plans
Service cost	$ 100	$ 96	$ 111
Interest cost	122	123	125
Expected return on plan assets	(253)	(244)	(250)
Amortization	94	83	92
Benefit plans	63	58	78
Settlements and special termination benefits	46	62	81
Total expense	109	120	159
Pension plan [Member] | Non-United States pension liabilities [Member]
Defined Benefit Plans and Other Postretirement Benefit Plans
Service cost	63	71	63
Interest cost	52	55	62
Expected return on plan assets	(105)	(94)	(92)
Amortization	39	51	33
Benefit plans	49	83	66
Settlements and special termination benefits	2	5	3
Total expense	51	88	69
Other postretirement benefits plans [Member]
Defined Benefit Plans and Other Postretirement Benefit Plans
Service cost	2	3	4
Interest cost	13	14	17
Expected return on plan assets	(3)	(4)	(6)
Amortization	(13)	(13)	(9)
Benefit plans	(1)	0	6
Settlements and special termination benefits	0	0	1
Total expense	$ (1)	$ 0	$ 7

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Retirement Benefits Plans - Estimated Future Pretax Amounts Recognized From AOCI to Net Periodic Benefit Cost (Details) $ in Millions	12 Months Ended
	Dec. 31, 2018 USD ($)
Pension plan [Member] | United States pension liabilities [Member]
Defined Benefit Plans and Other Postretirement Benefit Plans
Actuarial loss	$ 113
Prior service cost (credit)	1
Total	114
Pension plan [Member] | Non-United States pension liabilities [Member]
Defined Benefit Plans and Other Postretirement Benefit Plans
Actuarial loss	36
Prior service cost (credit)	3
Total	39
Other postretirement liabilities [Member]
Defined Benefit Plans and Other Postretirement Benefit Plans
Actuarial loss	0
Prior service cost (credit)	(14)
Total	$ (14)

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Retirement Benefits Plans - Pension Plans Assumptions (Details) - Pension plan [Member]	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
United States pension liabilities [Member]
Assumptions used to determine benefit obligation at year-end
Discount rate		4.28%	3.64%	4.12%
Rate of compensation increase		3.14%	3.15%	3.15%
Assumptions used to determine expense
Discount rate used to determine benefit obligation		3.64%	4.12%	4.22%
Discount rate used to determine service cost		3.78%	4.31%	4.35%
Discount rate used to determine interest cost		3.19%	3.40%	3.42%
Expected long-term return on plan assets	7.25%	7.52%	7.90%	8.50%
Rate of compensation increase		3.15%	3.15%	3.18%
Non-United States pension liabilities [Member]
Assumptions used to determine benefit obligation at year-end
Discount rate		2.83%	2.62%	2.63%
Rate of compensation increase		3.10%	3.11%	3.13%
Assumptions used to determine expense
Discount rate used to determine benefit obligation		2.62%	2.63%	3.46%
Discount rate used to determine service cost		3.54%	3.38%	4.13%
Discount rate used to determine interest cost		2.31%	2.34%	3.07%
Expected long-term return on plan assets	6.42%	6.40%	6.30%	6.62%
Rate of compensation increase		3.11%	3.13%	3.12%

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Retirement Benefits Plans - Other Postretirement Benefits Plan Assumptions (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Defined Benefit Plan, Effect of One-Percentage Point Change in Assumed Health Care Cost Trend Rate [Abstract]
Effect on total service and interest cost, 1% increase	$ 1
Effect on total service and interest cost, 1% decrease	0
Effect on other postretirement liabilities, 1% increase	11
Effect on other postretirement liabilities, 1% decrease	$ (10)
Other postretirement benefits plans [Member]
Assumptions used to determine benefit obligation at year-end
Discount rate	4.23%	3.55%	3.96%
Health care cost trend rate assumed for next year	7.10%	8.25%	7.35%
Ultimate health care cost trend rate	4.75%	4.75%	4.75%
Year ultimate health care cost trend rate is achieved	2028	2027	2026
Assumptions used to determine expense
Discount rate used to determine benefit obligation	3.55%	3.96%	4.04%
Discount rate used to determine service cost	3.62%	4.11%	4.26%
Discount rate used to determine interest cost	3.04%	3.18%	3.12%
Initial health care cost trend rate	8.25%	7.35%	7.10%
Ultimate health care cost trend rate	4.75%	4.75%	4.75%
Year ultimate health care cost trend rate is achieved	2027	2026	2025

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Retirement Benefits Plans - Employer Contributions to Retirement Benefits Plans (Details) - Pension plan [Member] - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2019
Defined Benefit Plans and Other Postretirement Benefit Plans
Expected future contributions, defined benefit plans				$ 116
Employer contributions to pension plans	$ 126	$ 473	$ 262
United States pension liabilities [Member]
Defined Benefit Plans and Other Postretirement Benefit Plans
Expected future contributions, defined benefit plans				20
Employer contributions to pension plans	17	374	160
Non-United States pension liabilities [Member]
Defined Benefit Plans and Other Postretirement Benefit Plans
Expected future contributions, defined benefit plans				$ 96
Employer contributions to pension plans	$ 109	$ 99	$ 102

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- Estimated Pension and Other Postretirement Benefit Payments (Details) $ in Millions	Dec. 31, 2018 USD ($)
Pension plan [Member] | United States pension liabilities [Member]
Defined Benefit Plans and Other Postretirement Benefit Plans
2019	$ 299
2020	291
2021	296
2022	297
2023	294
2024 - 2028	1,440
Pension plan [Member] | Non-United States pension liabilities [Member]
Defined Benefit Plans and Other Postretirement Benefit Plans
2019	86
2020	88
2021	90
2022	94
2023	98
2024 - 2028	539
Other postretirement benefits plans [Member]
Defined Benefit Plans and Other Postretirement Benefit Plans
2019	40
Medicare prescription drug subsidy 2019	(2)
2020	36
Medicare prescription drug subsidy 2020	(2)
2021	32
Medicare prescription drug subsidy 2021	(1)
2022	33
Medicare prescription drug subsidy 2022	0
2023	30
Medicare prescription drug subsidy 2023	0
2024 - 2028	126
Medicare prescription drug subsidy 2024 - 2028	$ (2)

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Retirement Benefits Plans - Fair Value of Pension Plan Assets (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Defined Benefit Plan Disclosure [Line Items]
Unfunded commitments	$ (180)	$ (20)
United States pension plans percentage of worldwide pension assets	66.00%
United Kingdom pension plans percentage of worldwide pension assets	27.00%
United States pension plans' target allocation of United States equities	25.00%
United States pension plans' target allocation of non-United States equities	25.00%
United States pension plans' target allocation of real estate	8.00%
United State pension plans' target allocation of debt securities	37.00%
United States pension plans' target allocation of other, including hedge funds and cash equivalents	5.00%
United Kingdom pension plans' target allocation of equities	62.00%
Total pension plan assets	$ 4,628	5,312
Quoted prices in active markets for identical assets (Level 1) [Member]
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	657	701
Other observable inputs (Level 2) [Member]
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	2,036	2,218
Unobservable inputs (Level 3) [Member]
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	96	92
Non-United States Equity and Global Equities [Member]
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	612	741
Non-United States Equity and Global Equities [Member] | Quoted prices in active markets for identical assets (Level 1) [Member]
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	0	0
Non-United States Equity and Global Equities [Member] | Other observable inputs (Level 2) [Member]
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	612	741
Non-United States Equity and Global Equities [Member] | Unobservable inputs (Level 3) [Member]
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	0	0
United States Equity [Member]
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	50	86
United States Equity [Member] | Quoted prices in active markets for identical assets (Level 1) [Member]
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	0	0
United States Equity [Member] | Other observable inputs (Level 2) [Member]
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	50	86
United States Equity [Member] | Unobservable inputs (Level 3) [Member]
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	0	0
Fixed Income [Member]
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	483	478
Fixed Income [Member] | Quoted prices in active markets for identical assets (Level 1) [Member]
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	0	0
Fixed Income [Member] | Other observable inputs (Level 2) [Member]
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	483	478
Fixed Income [Member] | Unobservable inputs (Level 3) [Member]
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	0	0
Fixed Income Securities [Member]
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	721	709
Fixed Income Securities [Member] | Quoted prices in active markets for identical assets (Level 1) [Member]
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	0	0
Fixed Income Securities [Member] | Other observable inputs (Level 2) [Member]
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	721	709
Fixed Income Securities [Member] | Unobservable inputs (Level 3) [Member]
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	0	0
United States treasuries [Member]
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	261	67
United States treasuries [Member] | Quoted prices in active markets for identical assets (Level 1) [Member]
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	261	67
United States treasuries [Member] | Other observable inputs (Level 2) [Member]
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	0	0
United States treasuries [Member] | Unobservable inputs (Level 3) [Member]
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	0	0
Bank Loans [Member]
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	107	161
Bank Loans [Member] | Quoted prices in active markets for identical assets (Level 1) [Member]
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	0	0
Bank Loans [Member] | Other observable inputs (Level 2) [Member]
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	107	161
Bank Loans [Member] | Unobservable inputs (Level 3) [Member]
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	0	0
Real Estate Securities [Member]
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	202	239
Real Estate Securities [Member] | Quoted prices in active markets for identical assets (Level 1) [Member]
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	181	220
Real Estate Securities [Member] | Other observable inputs (Level 2) [Member]
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	0	0
Real Estate Securities [Member] | Unobservable inputs (Level 3) [Member]
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	21	19
Equity Securities [Member]
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	51	139
Equity Securities [Member] | Quoted prices in active markets for identical assets (Level 1) [Member]
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	51	139
Equity Securities [Member] | Other observable inputs (Level 2) [Member]
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	0	0
Equity Securities [Member] | Unobservable inputs (Level 3) [Member]
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	0	0
Cash Equivalents [Member]
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	152	86
Cash Equivalents [Member] | Quoted prices in active markets for identical assets (Level 1) [Member]
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	104	51
Cash Equivalents [Member] | Other observable inputs (Level 2) [Member]
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	48	35
Cash Equivalents [Member] | Unobservable inputs (Level 3) [Member]
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	0	0
Exchange Traded Funds [Member]
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	60	224
Exchange Traded Funds [Member] | Quoted prices in active markets for identical assets (Level 1) [Member]
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	60	224
Exchange Traded Funds [Member] | Other observable inputs (Level 2) [Member]
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	0	0
Exchange Traded Funds [Member] | Unobservable inputs (Level 3) [Member]
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	0	0
Other Pension Plan Asset [Member]
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	90	81
Other Pension Plan Asset [Member] | Quoted prices in active markets for identical assets (Level 1) [Member]
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	0	0
Other Pension Plan Asset [Member] | Other observable inputs (Level 2) [Member]
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	15	8
Other Pension Plan Asset [Member] | Unobservable inputs (Level 3) [Member]
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	75	73
Common Collective Trusts [Member]
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	1,834	2,225
Hedge Funds, Equity [Member]
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets		67
Money Market Funds [Member]
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	$ 5	$ 9
United Kingdom Plan [Member] | Defined Benefit Plan, Debt Security and Real Estate Investment [Member]
Defined Benefit Plan Disclosure [Line Items]
United States pension plans' target allocation of real estate	38.00%

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Retirement Benefits Plans - Change in Plan Level 3 Assets (Details) - Fair Value, Inputs, Level 3 [Member] - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Defined Benefit Plan, Change in Fair Value of Plan Assets, Level 3 Reconciliation [Roll Forward]
Beginning balance	$ 92	$ 101
Gains (losses) relating to assets still held at year-end	(1)	(4)
Purchases, sales, settlements - net	5	(5)
Transfers into or out of Level 3	0	0
Beginning balance	96	92
Real Estate Funds [Member]
Defined Benefit Plan, Change in Fair Value of Plan Assets, Level 3 Reconciliation [Roll Forward]
Beginning balance	19	6
Gains (losses) relating to assets still held at year-end	(1)	1
Purchases, sales, settlements - net	3	12
Transfers into or out of Level 3	0	0
Beginning balance	21	19
Other Pension Plan Assets [Member]
Defined Benefit Plan, Change in Fair Value of Plan Assets, Level 3 Reconciliation [Roll Forward]
Beginning balance	73	95
Gains (losses) relating to assets still held at year-end	0	(5)
Purchases, sales, settlements - net	2	(17)
Transfers into or out of Level 3	0	0
Beginning balance	$ 75	$ 73

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Retirement Benefits Plans - Fair Value of Other Postretirement Benefits Plan Assets (Details) - Other postretirement benefits plans [Member] - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017
Fair Value of Other Postretirement Benefits Plan Assets [Line Items]
Cash equivalents	$ 6	$ 7
Common Collective Trusts, Fixed Income	31	48
Total other postretirement benefits plan assets	37	55
Quoted prices in active markets for identical assets (Level 1) [Member]
Fair Value of Other Postretirement Benefits Plan Assets [Line Items]
Cash equivalents	6	7
Total other postretirement benefits plan assets	6	7
Other observable inputs (Level 2) [Member]
Fair Value of Other Postretirement Benefits Plan Assets [Line Items]
Cash equivalents	0	0
Total other postretirement benefits plan assets	0	0
Unobservable inputs (Level 3) [Member]
Fair Value of Other Postretirement Benefits Plan Assets [Line Items]
Cash equivalents	0	0
Total other postretirement benefits plan assets	$ 0	$ 0

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Retirement Benefits Plans - Defined Contribution Plans (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Retirement Benefits [Abstract]
Employer contributions to defined contribution plans	$ 124	$ 114	$ 72

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Income Taxes - Income (Loss) Before Income Taxes (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Income (Loss) Before Income Taxes [Line Items]
Total income before income taxes	$ 2,424	$ 3,368	$ 2,118
Ireland [Member]
Income (Loss) Before Income Taxes [Line Items]
Total income before income taxes	(365)	(1,090)	(923)
Foreign [Member]
Income (Loss) Before Income Taxes [Line Items]
Total income before income taxes	$ 2,789	$ 4,458	$ 3,041

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Income Taxes - Income Tax (Benefit) Expense (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Current Income Tax Expense (Benefit) [Abstract]
Total current income tax expense	$ 417	$ 358	$ 304
Deferred Income Tax Benefit [Abstract]
Total deferred income tax benefit	(139)	24	(105)
Income tax expense (benefit)	278	382	199
Ireland [Member]
Current Income Tax Expense (Benefit) [Abstract]
Ireland	47	1	2
Deferred Income Tax Benefit [Abstract]
Ireland	6	0	2
United States - Federal [Member]
Current Income Tax Expense (Benefit) [Abstract]
United States - Federal	115	123	93
Deferred Income Tax Benefit [Abstract]
United States - Federal	(122)	82	(77)
Foreign - other [Member]
Current Income Tax Expense (Benefit) [Abstract]
Foreign - other	255	234	209
Deferred Income Tax Benefit [Abstract]
Foreign - other	$ (23)	$ (58)	$ (30)

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Income Taxes - Reconciliations of Income Taxes from the Appropriate Statutory Rate (Details)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Reconciliation of income taxes from appropriate statutory rate to the consolidated effective income tax rate [Line Items]
Income taxes at the applicable statutory rate	25.00%	25.00%	25.00%
Effective income tax expense rate	11.50%	11.30%	9.40%
Ireland Operations [Member]
Reconciliation of income taxes from appropriate statutory rate to the consolidated effective income tax rate [Line Items]
Ireland tax on trading income	(2.00%)	0.00%	(0.30%)
Nondeductible interest expense	7.80%	8.20%	11.50%
Other reconciling items	0.10%	0.00%	0.00%
United States operations [Member]
Reconciliation of income taxes from appropriate statutory rate to the consolidated effective income tax rate [Line Items]
United States operations (earnings taxed at other than the applicable statutory rate)	0.20%	1.70%	0.10%
U.S. federal tax rate change	0.00%	(7.50%)	0.00%
U.S. tax on foreign earnings	0.00%	4.80%	0.00%
U.S. foreign tax credit	(0.20%)	(3.90%)	0.60%
Credit for research activities	(0.80%)	(0.50%)	(0.80%)
Tax on foreign currency loss	(1.60%)	(0.00%)	(0.00%)
Other reconciling items	2.40%	3.20%	2.50%
Other foreign operations [Member]
Reconciliation of income taxes from appropriate statutory rate to the consolidated effective income tax rate [Line Items]
Non-U.S. operations (earnings taxed at other than the applicable statutory tax rate)	(19.80%)	(22.90%)	(26.80%)
Other reconciling items	0.70%	0.40%	0.90%
Worldwide Operations [Member]
Reconciliation of income taxes from appropriate statutory rate to the consolidated effective income tax rate [Line Items]
Adjustments to tax liabilities	1.10%	(1.80%)	(2.50%)
Adjustments to valuation allowances	(1.40%)	4.60%	(0.80%)
Effective Income Tax Rate [Member]
Reconciliation of income taxes from appropriate statutory rate to the consolidated effective income tax rate [Line Items]
Effective income tax expense rate	11.50%	11.30%	9.40%

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Income Taxes - Worldwide Income Tax Payments (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Income Tax Disclosure [Abstract]
Income taxes paid	$ 371	$ 288	$ 272

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Income Taxes - Components of Current and Long-Term Deferred Income Taxes (Details) - Long-term assets and liabilities [Member] - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017
Deferred Tax Assets, Tax Deferred Expense, Reserves and Accruals [Abstract]
Employee benefits	$ 481	$ 430
Depreciation and amortization	(1,198)	(1,324)
Other accruals and adjustments	434	380
Deferred Tax Assets, Net, Classification [Abstract]
Ireland income tax loss carryforwards	1	1
Foreign income tax loss carryforwards	1,915	1,962
Foreign income tax credit carryforwards	396	404
Valuation allowance for income tax loss and income tax credit carryforwards	(2,032)	(1,992)
Other valuation allowances	(53)	(146)
Total deferred income taxes	$ (56)	$ (285)

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Income Taxes - Operating Loss and Tax Credit Carryforwards, Foreign, By Expiration Dates (Details) $ in Millions	Dec. 31, 2018 USD ($)
2019 through 2023 [Member]
Operating Loss and Tax Credit Carry Forward [Line Items]
Ireland deferred income tax assets for income tax loss carryforwards	$ 0
2024 through 2028 [Member]
Operating Loss and Tax Credit Carry Forward [Line Items]
Ireland deferred income tax assets for income tax loss carryforwards	0
2029 through 2033 [Member]
Operating Loss and Tax Credit Carry Forward [Line Items]
Ireland deferred income tax assets for income tax loss carryforwards	0
2034 through 2043 [Member]
Operating Loss and Tax Credit Carry Forward [Line Items]
Ireland deferred income tax assets for income tax loss carryforwards	0
Not subject to expiration [Member]
Operating Loss and Tax Credit Carry Forward [Line Items]
Ireland deferred income tax assets for income tax loss carryforwards	1
2019 through 2023 [Member]
Operating Loss and Tax Credit Carry Forward [Line Items]
Ireland income tax loss carryforwards	0
2024 through 2028 [Member]
Operating Loss and Tax Credit Carry Forward [Line Items]
Ireland income tax loss carryforwards	0
2029 through 2033 [Member]
Operating Loss and Tax Credit Carry Forward [Line Items]
Ireland income tax loss carryforwards	0
2034 through 2043 [Member]
Operating Loss and Tax Credit Carry Forward [Line Items]
Ireland income tax loss carryforwards	0
Not subject to expiration [Member]
Operating Loss and Tax Credit Carry Forward [Line Items]
Ireland income tax loss carryforwards	8
Related valuation allowance [Member]
Operating Loss and Tax Credit Carry Forward [Line Items]
Ireland income tax loss carryforwards	0
Ireland deferred income tax assets for income tax loss carryforwards	$ (1)

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Income Taxes - Operating Loss and Tax Credit Carryforwards, Domestic, By Expiration Dates (Details) $ in Millions	Dec. 31, 2018 USD ($)
Internal Revenue Service (IRS) [Member] | Domestic Tax Authority [Member] | 2019 through 2023 [Member]
Operating Loss and Tax Credit Carry Forward [Line Items]
Foreign income tax loss carryforwards	$ 929
Foreign deferred income tax assets for income tax loss carryforwards	112
Foreign income tax credit carryforwards	116
Internal Revenue Service (IRS) [Member] | Domestic Tax Authority [Member] | 2019 through 2023 [Member] | After ASU 2013-11 [Member]
Operating Loss and Tax Credit Carry Forward [Line Items]
Foreign deferred income tax assets for income tax loss carryforwards	99
Internal Revenue Service (IRS) [Member] | Domestic Tax Authority [Member] | 2024 through 2028 [Member]
Operating Loss and Tax Credit Carry Forward [Line Items]
Foreign income tax loss carryforwards	130
Foreign deferred income tax assets for income tax loss carryforwards	41
Foreign income tax credit carryforwards	188
Internal Revenue Service (IRS) [Member] | Domestic Tax Authority [Member] | 2024 through 2028 [Member] | After ASU 2013-11 [Member]
Operating Loss and Tax Credit Carry Forward [Line Items]
Foreign deferred income tax assets for income tax loss carryforwards	36
Internal Revenue Service (IRS) [Member] | Domestic Tax Authority [Member] | 2029 through 2033 [Member]
Operating Loss and Tax Credit Carry Forward [Line Items]
Foreign income tax loss carryforwards	7,433
Foreign deferred income tax assets for income tax loss carryforwards	686
Foreign income tax credit carryforwards	104
Internal Revenue Service (IRS) [Member] | Domestic Tax Authority [Member] | 2029 through 2033 [Member] | After ASU 2013-11 [Member]
Operating Loss and Tax Credit Carry Forward [Line Items]
Foreign deferred income tax assets for income tax loss carryforwards	672
Internal Revenue Service (IRS) [Member] | Domestic Tax Authority [Member] | 2034 through 2043 [Member]
Operating Loss and Tax Credit Carry Forward [Line Items]
Foreign income tax loss carryforwards	788
Foreign deferred income tax assets for income tax loss carryforwards	225
Foreign income tax credit carryforwards	120
Internal Revenue Service (IRS) [Member] | Domestic Tax Authority [Member] | 2034 through 2043 [Member] | After ASU 2013-11 [Member]
Operating Loss and Tax Credit Carry Forward [Line Items]
Foreign deferred income tax assets for income tax loss carryforwards	216
Internal Revenue Service (IRS) [Member] | Domestic Tax Authority [Member] | Not subject to expiration [Member]
Operating Loss and Tax Credit Carry Forward [Line Items]
Foreign income tax loss carryforwards	3,450
Foreign deferred income tax assets for income tax loss carryforwards	892
Foreign income tax credit carryforwards	31
Internal Revenue Service (IRS) [Member] | Domestic Tax Authority [Member] | Not subject to expiration [Member] | After ASU 2013-11 [Member]
Operating Loss and Tax Credit Carry Forward [Line Items]
Foreign deferred income tax assets for income tax loss carryforwards	892
Internal Revenue Service (IRS) [Member] | Domestic Tax Authority [Member] | Valuation allowance [Member]
Operating Loss and Tax Credit Carry Forward [Line Items]
Foreign income tax loss carryforwards	0
Foreign deferred income tax assets for income tax loss carryforwards	(1,790)
Foreign income tax credit carryforwards	(241)
Internal Revenue Service (IRS) [Member] | Domestic Tax Authority [Member] | Valuation allowance [Member] | After ASU 2013-11 [Member]
Operating Loss and Tax Credit Carry Forward [Line Items]
Foreign deferred income tax assets for income tax loss carryforwards	(1,790)
Domestic Tax Authority [Member] | Internal Revenue Service (IRS) [Member] | 2019 through 2023 [Member] | After ASU 2013-11 [Member]
Operating Loss and Tax Credit Carry Forward [Line Items]
Foreign income tax credit carryforwards	80
Domestic Tax Authority [Member] | Internal Revenue Service (IRS) [Member] | 2024 through 2028 [Member] | After ASU 2013-11 [Member]
Operating Loss and Tax Credit Carry Forward [Line Items]
Foreign income tax credit carryforwards	178
Domestic Tax Authority [Member] | Internal Revenue Service (IRS) [Member] | 2029 through 2033 [Member] | After ASU 2013-11 [Member]
Operating Loss and Tax Credit Carry Forward [Line Items]
Foreign income tax credit carryforwards	32
Domestic Tax Authority [Member] | Internal Revenue Service (IRS) [Member] | 2034 through 2043 [Member] | After ASU 2013-11 [Member]
Operating Loss and Tax Credit Carry Forward [Line Items]
Foreign income tax credit carryforwards	75
Domestic Tax Authority [Member] | Internal Revenue Service (IRS) [Member] | Not subject to expiration [Member] | After ASU 2013-11 [Member]
Operating Loss and Tax Credit Carry Forward [Line Items]
Foreign income tax credit carryforwards	31
Domestic Tax Authority [Member] | Internal Revenue Service (IRS) [Member] | Valuation allowance [Member] | After ASU 2013-11 [Member]
Operating Loss and Tax Credit Carry Forward [Line Items]
Foreign income tax credit carryforwards	$ (241)

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Income Taxes - Summary of Gross Unrecognized Income Tax Benefits (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Income Tax Disclosure [Abstract]
Balance at January 1	$ 735	$ 629	$ 584
Increases and decreases as a result of positions taken during prior years
Transfers from valuation allowances	2	0	0
Other increases, including currency translation	164	10	21
Other decreases, including currency translation	(35)	(30)	(24)
Increases as a result of positions taken during the current year	69	162	90
Decreases relating to settlements with tax authorities	(3)	(10)	(19)
Decreases as a result of a lapse of the applicable statute of limitations	(19)	(26)	(23)
Balance at December 31	$ 913	$ 735	$ 629

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Income Taxes - Narrative (Details) - USD ($) $ in Millions	1 Months Ended	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Income Taxes [Abstract]
Income tax expense		$ 278	$ 382	$ 199
Effective income tax (benefit) expense rate		11.50%	11.30%	9.40%
Tax benefit related to the arbitration decision expense		$ (69)
Income tax expense related to the gain on sale of a business			$ 234
Income tax benefit related to U.S. Tax Cuts and Jobs Acts (TCJA)	$ (62)	$ (45)
Income tax rate excluding gain and related tax impact on the sale of business, arbitration decision, and U.S. Tax Cuts and Jobs Act (TCJA)		12.80%	9.20%
Deferred other tax expense (benefit)	(79)	$ 17
Provisional tax expense for one time transition tax	17
Undistributed earnings of United States and other foreign subsidiaries where no provision has been made		25,500
Unrecognized tax benefits that would impact effective tax rate		599
Income tax examination, penalties and interest accrued	$ 80	74	$ 80
2011 Notice [Member]
Income Taxes [Abstract]
IRS Statutory Notice of Deficiency proposed assessment of additional taxes		75
Penalties associated with IRS Statutory Notice of Deficiency proposed assessment		52
2014 Notice [Member]
Income Taxes [Abstract]
IRS Statutory Notice of Deficiency proposed assessment of additional taxes		190
Penalties associated with IRS Statutory Notice of Deficiency proposed assessment		72
Secretariat of the Federal Revenue Bureau of Brazil [Member] | Foreign Tax Authority [Member]
Income Taxes [Abstract]
Income tax examination, penalties and interest accrued		84
Alleged tax deficiency		$ 32
Number of years estimated to resolve		10 years
Tax assessment received		$ 33

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Eaton Shareholders' Equity - Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Equity [Abstract]
Currency translation and related hedging instuments pre-tax	$ (613)	$ 800	$ (562)
Currency translation and related hedging instruments after-tax	(609)	807	(570)
Pension and Other Postretirement Benefits [Abstract]
Prior service credit (cost) arising during the year pre-tax	(25)	(1)	(2)
Prior service credit (cost) arising during the year after-tax	(20)	0	(2)
Net gain (loss) arising during the year pre-tax	(358)	215	(247)
Net gain (loss) arising during the year after-tax	(274)	169	(197)
Currency translation pre-tax	37	(67)	74
Currency translation after-tax	29	(53)	62
Other pre-tax	0	0	0
Other after-tax	5	(5)	(2)
Amortization of actuarial loss and prior service cost reclassified to earnings pre-tax	168	188	201
Amortization of actuarial loss and prior service cost reclassified to earnings after-tax	121	130	133
Total pensions and other postretirement benefits included in other comprehensive income (loss), pre-tax	(178)	335	26
Total pensions and other postretirement benefits included in other comprehensive income (loss), after-tax	(139)	241	(6)
Other Accumulated Comprehensive Income (Loss) Cash Flow Hedges
Gain (loss) on derivatives designated as cash flow hedges pre-tax	(8)	(24)	(21)
Gain (loss) on derivatives designated as cash flow hedges after-tax	(6)	(15)	(14)
Changes in cash flow hedges reclassified to earnings pre-tax	16	17	8
Changes in cash flow hedges reclassified to earnings after-tax	13	11	5
Cash flow hedges, net of reclassification adjustments pre-tax	8	(7)	(13)
Cash flow hedges, net of reclassification adjustments after-tax	7	(4)	(9)
Other comprehensive income (loss) attributable to Eaton ordinary shareholders pre-tax	(783)	1,128	(549)
Other comprehensive income (loss) attributable to Eaton ordinary shareholders after-tax	$ (741)	$ 1,044	$ (585)

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Eaton Shareholders' Equity - Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Changes in accumulated other comprehensive income (loss) [Line Items]
Beginning Balance	$ (3,404)
Net current-period Other comprehensive income (loss)	(741)	$ 1,044	$ (585)
Ending Balance	(4,145)	(3,404)
Currency translation and related hedging instruments [Member]
Changes in accumulated other comprehensive income (loss) [Line Items]
Beginning Balance	(2,255)
Other comprehensive income (loss) before reclassifications	(609)
Amounts reclassified from Accumulated other comprehensive loss (income)	0
Net current-period Other comprehensive income (loss)	(609)
Ending Balance	(2,864)	(2,255)
Pensions and Other Postretirement Benefits [Member]
Changes in accumulated other comprehensive income (loss) [Line Items]
Beginning Balance	(1,139)
Other comprehensive income (loss) before reclassifications	(260)
Amounts reclassified from Accumulated other comprehensive loss (income)	121
Net current-period Other comprehensive income (loss)	(139)
Ending Balance	(1,278)	(1,139)
Cash Flow Hedges [Member]
Changes in accumulated other comprehensive income (loss) [Line Items]
Beginning Balance	(10)
Other comprehensive income (loss) before reclassifications	(6)
Amounts reclassified from Accumulated other comprehensive loss (income)	13
Net current-period Other comprehensive income (loss)	7
Ending Balance	(3)	(10)
Accumulated Other Comprehensive Income (Loss) [Member]
Changes in accumulated other comprehensive income (loss) [Line Items]
Beginning Balance	(3,404)
Other comprehensive income (loss) before reclassifications	(875)
Amounts reclassified from Accumulated other comprehensive loss (income)	134
Net current-period Other comprehensive income (loss)	(741)
Ending Balance	$ (4,145)	$ (3,404)

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Eaton Shareholders' Equity - Reclassifications Out of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions		12 Months Ended
		Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives[Line Items]
Tax (benefit) expense		$ (278)	$ (382)	$ (199)
Currency exchange contracts		14,511	$ 13,756	$ 13,396
Reclassification out of Accumulated Other Comprehensive Loss [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives[Line Items]
Total reclassifications for the period		(134)
Reclassification out of Accumulated Other Comprehensive Loss [Member] | Amortization of defined benefit pension and other postretirement benefits items [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives[Line Items]
Actuarial loss and prior service cost	[1]	(168)
Tax (benefit) expense		47
Total reclassifications for the period		(121)
Reclassification out of Accumulated Other Comprehensive Loss [Member] | Gains and losses on cash flow hedges [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives[Line Items]
Tax (benefit) expense		3
Total reclassifications for the period		(13)
Reclassification out of Accumulated Other Comprehensive Loss [Member] | Gains and losses on cash flow hedges [Member] | Currency exchange contracts [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives[Line Items]
Currency exchange contracts		$ (16)

[1] These components of Accumulated other comprehensive loss are included in the computation of net periodic benefit cost. See Note 8 for additional information about defined benefits pension and other postretirement benefits items.

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Eaton Shareholders' Equity - Net Income per Ordinary Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Equity [Abstract]
Net income attributable to Eaton ordinary shareholders	$ 2,145	$ 2,985	$ 1,916
Weighted-average number of ordinary shares outstanding - diluted (shares)	436.9	447.0	456.5
Less dilutive effect of equity-based compensation	2.6	2.5	1.5
Weighted-average number of ordinary shares outstanding - basic (shares)	434.3	444.5	455.0
Net income per ordinary share - diluted (usd per share)	$ 4.91	$ 6.68	$ 4.20
Net income per ordinary share - basic (usd per share)	$ 4.93	$ 6.71	$ 4.21

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Eaton Shareholders' Equity (Textuals) (Details) $ / shares in Units, $ in Millions			1 Months Ended	12 Months Ended
	Feb. 27, 2019 $ / shares	Feb. 24, 2016 USD ($)	Dec. 31, 2018 USD ($) $ / shares shares	Dec. 31, 2018 USD ($) $ / shares shares	Dec. 31, 2017 USD ($) $ / shares shares	Dec. 31, 2016 USD ($) $ / shares shares	Mar. 22, 2019 $ / shares	Dec. 31, 2018 € / shares
Shareholders Equity Textuals Abstract
Ordinary shares authorized			750,000,000	750,000,000
Eaton Corporation plc ordinary share par value | $ / shares			$ 0.01	$ 0.01
Ordinary shares issued and outstanding (shares)			423,600,000	423,600,000	439,900,000
Deferred ordinary shares authorized			40,000	40,000
Deferred ordinary shares par value | € / shares								€ 1.00
Deferred ordinary shares, shares issued and outstanding			40,000	40,000	40,000
Preferred A Shares authorized			10,000	10,000
Preferred A Shares par value | $ / shares			$ 1.00	$ 1.00
Preferred A Shares, Shares Issued			10,000	10,000	10,000
Preferred A Shares, Shares Outstanding			10,000	10,000	10,000
Serial preferred shares authorized			10,000,000	10,000,000
Serial preferred share par value per share | $ / shares			$ 0.01	$ 0.01
Number of holders of record of Eaton ordinary shares			12,846	12,846
Number of current and former employees who were shareholders through various Eaton plans				18,972
Disclosure of Repurchase Agreements [Abstract]
2013 Share repurchase program, shares repurchased						1,500,000
2013 Share repurchase program - cost | $						$ 82
2016 Share repurchase program, shares repurchased during period				13,200,000	11,500,000	10,300,000
Shares Repurchased During December 2018			4,300,000
2016 share repurchase program- cost | $				$ 1,002	$ 850	$ 648
Stock Repurchased During Period, Value | $			$ 298
Employee Trust [Abstract]
Deferred compensation plan trust of shares and marketable secutities | $			$ 8	$ 8	$ 11
Quarterly dividends, per share, declared (usd per share) | $ / shares				$ 2.64	$ 2.40	$ 2.28
Antidilutive securities excluded from computation of net income per ordinary share				500,000	400,000	1,700,000
2016 Program [Member]
Disclosure of Repurchase Agreements [Abstract]
2016 Share Repurchase Program, Authorized Dollar Amount | $		$ 2,500
Scenario, Forecast [Member]
Employee Trust [Abstract]
Quarterly dividends, per share, declared (usd per share) | $ / shares	$ 0.71
Dividend increase percentage over dividend paid in prior quarter	8.00%
Dividends Payable, Amount Per Share | $ / shares							$ 0.71
Serial Preferred [Member]
Shareholders Equity Textuals Abstract
Serial preferred shares, shares issued and outstanding			0	0	0

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Equity-Based Compensation Restricted Stock Units and Awards Activity (Details) - USD ($) $ / shares in Units, shares in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Weighted-average fair value per unit and award
Compensation expense not yet recognized related to non-vested RSUs and RSAs	$ 72,000,000
Non-vested stock options weighted-average period for total compensation expense to be recognized ( in years)	1 year 9 months 8 days
Restricted Stock Units (RSUs) [Member]
Number of restricted stock units and awards
Non-vested at January 1 (shares)	2.4
Granted (shares)	0.7
Vested (shares)	(0.9)
Forfeited (shares)	(0.1)
Non-vested at December 31 (shares)	2.1	2.4
Weighted-average fair value per unit and award
Non-vested at January 1 (usd per share)	$ 62.24
Granted (usd per share)	81.83
Vested (usd per share)	63.44
Forfeited (usd per share)	68.94
Non-vested at December 31 (usd per share)	$ 68.56	$ 62.24
Non-vested stock options weighted-average period for total compensation expense to be recognized ( in years)	2 years 4 months 24 days
Excess tax benefit for equity-based compensation	$ 3,000,000	$ 2,000,000	$ 0

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Equity-Based Compensation Information Related to Restricted Stock Units and Awards (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Pretax expense for RSUs and RSAs	$ 59	$ 66	$ 65
After-tax expense for RSUs and RSAs	46	43	42
Fair value of vested RSUs and RSAs	$ 71	$ 73	$ 71

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Equity-Based Compensation Performance Share Units (Details) - USD ($)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Pretax expense for PSUs	$ 28,000,000	$ 22,000,000	$ 13,000,000
After-tax expense for PSUs	22,000,000	13,000,000	8,000,000
Total compensation cost not yet recognized, PSUs	$ 30,000,000
Non-vested stock options weighted-average period for total compensation expense to be recognized ( in years)	1 year 9 months 8 days
Performance Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Excess tax benefit for equity-based compensation	$ 0	$ 0	$ 0
Performance Share Unit [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Non-vested stock options weighted-average period for total compensation expense to be recognized ( in years)	1 year 9 months 8 days
Minimum [Member] | Performance Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Range of PSU Award	0.00%
Maximum [Member] | Performance Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Range of PSU Award	200.00%

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Equity-Based Compensation Performance Share Units (Market Based Assumptions) (Details) - $ / shares	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Expected volatility	22.00%	24.00%	24.00%
Risk-free interest rate	2.38%	1.46%	0.88%
Weighted-average fair value of PSUs granted	$ 100.86	$ 80.07	$ 76.41

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Equity-Based Compensation Summary of RSUs (Details) - Performance Shares [Member] shares in Millions	12 Months Ended
	Dec. 31, 2018 shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percent payout	116.00%
Shares vested	0.5

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Equity-Based Compensation Performance Share Units - Market Based (Details) shares in Millions	12 Months Ended
	Dec. 31, 2018 $ / shares shares
Performance Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Non-vested at January 1 (shares) | shares	0.8
Granted (shares) | shares	0.3
Adjustment for performance results achieved | shares	0.1
Vested (shares) | shares	(0.5)
Forfeited (shares) | shares	(0.1)
Non-vested at December 31 (shares) | shares	0.6
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]
Non-vested at January 1 (usd per share) | $ / shares	$ 77.97
Granted (usd per share) | $ / shares	100.86
Adjustment for performance results achieved (usd per share) | $ / shares	76.41
Vested (usd per share) | $ / shares	76.41
Forfeited (usd per share) | $ / shares	85.92
Non-vested at December 31 (usd per share) | $ / shares	$ 89.95
Performance Share Unit [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Non-vested at January 1 (shares) | shares	0.1
Granted (shares) | shares	0.0
Vested (shares) | shares	0.0
Forfeited (shares) | shares	0.0
Non-vested at December 31 (shares) | shares	0.1
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]
Non-vested at January 1 (usd per share) | $ / shares	$ 56.55
Granted (usd per share) | $ / shares	0.00
Vested (usd per share) | $ / shares	0.00
Forfeited (usd per share) | $ / shares	0.00
Non-vested at December 31 (usd per share) | $ / shares	$ 56.55

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Equity-Based Compensation Stock Options Fair Value Assumptions (Details) - $ / shares	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Expected volatility (in percentage)	26.00%	27.00%	27.00%
Expected option life in years (in years)	6 years 8 months	6 years 7 months	5 years 6 months
Expected dividend yield (in percentage)	3.00%	2.80%	2.50%
Risk-free interest rate minimum (in percentage)	2.70%	1.80%	1.20%
Risk-free interest rate maximum (in percentage)	2.90%	2.10%	1.50%
Weighted-average fair value of stock options granted (in usd per share)	$ 16.93	$ 15.11	$ 11.80
Stock option vesting period (in years)	3 years
Stock option expiration date after date of grant	10 years

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Equity-Based Compensation Stock Options Activity (Details) $ / shares in Units, shares in Millions, $ in Millions	12 Months Ended
	Dec. 31, 2018 USD ($) $ / shares shares
Options
Closing price of Eaton ordinary shares on last trading day | $ / shares	$ 68.66
Weighted-average exercise price per option [Member]
Weighted-average exercise price per option
Beginning balance (usd per share) | $ / shares	62.43
Granted (usd per share) | $ / shares	81.76
Exercised (usd per share) | $ / shares	53.26
Forfeited and cancelled (usd per share) | $ / shares	0.00
Ending balance (usd per share) | $ / shares	65.96
Exercisable at December 31, 2018 | $ / shares	$ 63.39
Stock Options [Member]
Options
Outstanding at January 1, 2018, shares | shares	4.6
Granted, shares | shares	0.6
Exercised, shares | shares	(0.6)
Forfeited and cancelled, shares | shares	0.0
Outstanding at December 31, 2018, shares | shares	4.6
Exercisable at December 31, 2018, shares | shares	3.2
Reserved for future grants at December 31, 2018, shares | shares	13.2
Weighted-average remaining contractual life in years [Member]
Options
Outstanding at December 31, 2018	6 years 2 months 18 days
Exercisable at December 31, 2018	5 years 2 months 6 days
Aggregate Intrinsic Value [Member]
Options
Outstanding at December 31, 2018 | $	$ 27.4
Exercisable at December 31, 2018 | $	$ 22.4

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Equity-Based Compensation Information Related to Stock Options (Details) - USD ($) shares in Millions, $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Pretax expense for stock options	$ 11.0	$ 11.0	$ 14.0
After-tax expense for stock options	9.0	8.0	9.0
Proceeds from stock options exercised	29.0	66.0	74.0
Income tax benefit related to stock options exercised
Tax benefit classified in operating activities in the Consolidated Statements of Cash Flows	3.0	13.0	5.0
Excess tax benefit classified in financing activities in the Consolidated Statements of Cash Flows	0.0	0.0	1.0
Intrinsic value of stock options exercised	17.0	41.0	42.0
Total fair value of stock options vested	$ 11.0	$ 11.0	$ 14.0
Stock options exercised, in millions of options	0.6	1.5	1.9
Non-vested stock option compensation expense not yet recognized	$ 10.0
Non-vested stock options weighted-average period for total compensation expense to be recognized ( in years)	1 year 9 months 8 days

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Fair Value Measurements - Assets Measured on Recurring Basis (Details) - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017
Summary of financial instruments recognized at fair value and fair value measurement used
Cash	$ 283	$ 561
Short-term investments	157	534
Net derivative contracts	14	36
Quoted prices in active markets for identical assets (Level 1) [Member]
Summary of financial instruments recognized at fair value and fair value measurement used
Cash	283	561
Short-term investments	157	534
Net derivative contracts	0	0
Other observable inputs (Level 2) [Member]
Summary of financial instruments recognized at fair value and fair value measurement used
Cash	0	0
Short-term investments	0	0
Net derivative contracts	14	36
Unobservable inputs (Level 3) [Member]
Summary of financial instruments recognized at fair value and fair value measurement used
Cash	0	0
Short-term investments	0	0
Net derivative contracts	$ 0	$ 0

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Fair Value Measurements Fair Value Measurements (Details 1) - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017
Fair Value Disclosures [Abstract]
Time deposits and certificates of deposit with banks	$ 111	$ 435
Money market investments	46	99
Total short-term investments	$ 157	$ 534

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Fair Value Measurements Fair Value Measurements (Details Textuals) - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017	Jul. 31, 2017
Fair Value Disclosures [Abstract]
Long-term debt and current portion of long term debt, carrying value	$ 7,107	$ 7,745
Long-term debt and current portion of long-term debt, fair value	$ 7,061	$ 8,048
Interest in business sold			50.00%
Equity method of accounting, ownership interest (in percentage)			50.00%
Investments, fair value			$ 600

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Derivative Financial Instruments and Hedging Activities - Gain on Commodity Hedge Contracts (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Commodity contracts	$ 1	$ 2

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Derivative Financial Instruments and Hedging Activities - Derivative Financial Statement Impacts (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Derivatives, Fair Value [Line Items]
Payments for settlement of currency exchange contracts not designated as hedges - net	$ 110	$ 0	$ 0
Other current assets [Member]
Derivatives, Fair Value [Line Items]
Derivative Instruments Not Designated as Hedging Instruments, Asset, at Fair Value	40	40
Derivatives designated as hedges
Derivative asset designated as hedging instrument	19	8
Other noncurrent assets [Member]
Derivatives designated as hedges
Derivative asset designated as hedging instrument	24	48
Other current liabilities [Member]
Derivatives, Fair Value [Line Items]
Derivative Instruments Not Designated as Hedging Instruments, Liability, at Fair Value	20	19
Derivatives designated as hedges
Derivative liability designated as hedging instrument	12	22
Other noncurrent liabilities [Member]
Derivatives designated as hedges
Derivative liability designated as hedging instrument	37	19
Designated as Hedging Instrument [Member] | Fair Value Hedging [Member] | Fixed-to-floating interest rate swaps
Derivatives designated as hedges
Notional amount	2,550	2,965
Designated as Hedging Instrument [Member] | Fair Value Hedging [Member] | Fixed-to-floating interest rate swaps | Other current assets [Member]
Derivatives designated as hedges
Derivative asset designated as hedging instrument	0	1
Designated as Hedging Instrument [Member] | Fair Value Hedging [Member] | Fixed-to-floating interest rate swaps | Other noncurrent assets [Member]
Derivatives designated as hedges
Derivative asset designated as hedging instrument	22	41
Designated as Hedging Instrument [Member] | Fair Value Hedging [Member] | Fixed-to-floating interest rate swaps | Other current liabilities [Member]
Derivatives designated as hedges
Derivative liability designated as hedging instrument	1	0
Designated as Hedging Instrument [Member] | Fair Value Hedging [Member] | Fixed-to-floating interest rate swaps | Other noncurrent liabilities [Member]
Derivatives designated as hedges
Derivative liability designated as hedging instrument	26	17
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Floating-to-fixed interest rate swaps
Derivatives designated as hedges
Notional amount	100
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Floating-to-fixed interest rate swaps | Other current assets [Member]
Derivatives designated as hedges
Derivative asset designated as hedging instrument	0
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Floating-to-fixed interest rate swaps | Other noncurrent assets [Member]
Derivatives designated as hedges
Derivative asset designated as hedging instrument	0
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Floating-to-fixed interest rate swaps | Other current liabilities [Member]
Derivatives designated as hedges
Derivative liability designated as hedging instrument	0
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Floating-to-fixed interest rate swaps | Other noncurrent liabilities [Member]
Derivatives designated as hedges
Derivative liability designated as hedging instrument	3
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Currency exchange contracts
Derivatives designated as hedges
Notional amount	951	924
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Currency exchange contracts | Other current assets [Member]
Derivatives designated as hedges
Derivative asset designated as hedging instrument	19	7
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Currency exchange contracts | Other noncurrent assets [Member]
Derivatives designated as hedges
Derivative asset designated as hedging instrument	2	7
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Currency exchange contracts | Other current liabilities [Member]
Derivatives designated as hedges
Derivative liability designated as hedging instrument	11	22
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Currency exchange contracts | Other noncurrent liabilities [Member]
Derivatives designated as hedges
Derivative liability designated as hedging instrument	8	2
Not Designated as Hedging Instrument [Member] | Currency exchange contracts
Derivatives designated as hedges
Notional amount	3,886	3,719
Not Designated as Hedging Instrument [Member] | Currency exchange contracts | Other current assets [Member]
Derivatives, Fair Value [Line Items]
Derivative Instruments Not Designated as Hedging Instruments, Asset, at Fair Value	40	39
Not Designated as Hedging Instrument [Member] | Currency exchange contracts | Other current liabilities [Member]
Derivatives, Fair Value [Line Items]
Derivative Instruments Not Designated as Hedging Instruments, Liability, at Fair Value	20	19
Not Designated as Hedging Instrument [Member] | Commodity contracts
Derivatives designated as hedges
Notional amount		13
Not Designated as Hedging Instrument [Member] | Commodity contracts | Other current assets [Member]
Derivatives, Fair Value [Line Items]
Derivative Instruments Not Designated as Hedging Instruments, Asset, at Fair Value		1
Not Designated as Hedging Instrument [Member] | Commodity contracts | Other current liabilities [Member]
Derivatives, Fair Value [Line Items]
Derivative Instruments Not Designated as Hedging Instruments, Liability, at Fair Value		0
Japanese Yen notes due 2018 [Member] | Japanese Yen notes payable [Member] | Non-derivative net investment hedge [Member]
Derivatives, Fair Value [Line Items]
Foreign Currency Note Payable, Noncurrent, after-tax		88
Foreign Currency Note Payable, Noncurrent, pre-tax	$ 623	$ 652
Minimum [Member] | Designated as Hedging Instrument [Member] | Fair Value Hedging [Member] | Fixed-to-floating interest rate swaps
Derivatives designated as hedges
Derivative, remaining maturity	3 months	6 months
Minimum [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Floating-to-fixed interest rate swaps
Derivatives designated as hedges
Derivative, remaining maturity	34 years
Minimum [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Currency exchange contracts
Derivatives designated as hedges
Derivative, remaining maturity	1 month	1 month
Minimum [Member] | Not Designated as Hedging Instrument [Member] | Currency exchange contracts
Derivatives designated as hedges
Derivative, remaining maturity	1 month	1 month
Minimum [Member] | Not Designated as Hedging Instrument [Member] | Commodity contracts
Derivatives designated as hedges
Derivative, remaining maturity		1 month
Maximum [Member] | Designated as Hedging Instrument [Member] | Fair Value Hedging [Member] | Fixed-to-floating interest rate swaps
Derivatives designated as hedges
Derivative, remaining maturity	16 years	17 years
Maximum [Member] | Designated as Hedging Instrument [Member] | Fair Value Hedging [Member] | Floating-to-fixed interest rate swaps
Derivatives designated as hedges
Derivative, remaining maturity	34 years
Maximum [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Currency exchange contracts
Derivatives designated as hedges
Derivative, remaining maturity	36 months	36 months
Maximum [Member] | Not Designated as Hedging Instrument [Member] | Currency exchange contracts
Derivatives designated as hedges
Derivative, remaining maturity	12 months	12 months
Maximum [Member] | Not Designated as Hedging Instrument [Member] | Commodity contracts
Derivatives designated as hedges
Derivative, remaining maturity		12 months

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Derivative Financial Instruments and Hedging Activities - Fixed-to-Floating Interest Rate Swaps (Details) $ in Millions	12 Months Ended
	Dec. 31, 2018 USD ($)
Notes due 2019 [Member]
Derivative [Line Items]
Notional amount	$ 300
Fixed interest rate received (percentage)	6.95%
Floating interest rate paid (percentage)	7.29%
Debentures due 2019 [Member]
Derivative [Line Items]
Notional amount	$ 25
Fixed interest rate received (percentage)	8.88%
Floating interest rate paid (percentage)	6.07%
Debentures due 2020 [Member]
Derivative [Line Items]
Notional amount	$ 150
Fixed interest rate received (percentage)	3.88%
Floating interest rate paid (percentage)	4.14%
Notes due 2021 [Member]
Derivative [Line Items]
Notional amount	$ 275
Fixed interest rate received (percentage)	3.47%
Floating interest rate paid (percentage)	3.75%
Debentures due 2022 [Member]
Derivative [Line Items]
Notional amount	$ 100
Fixed interest rate received (percentage)	8.10%
Floating interest rate paid (percentage)	7.92%
Senior notes due 2022 [Member]
Derivative [Line Items]
Notional amount	$ 1,400
Fixed interest rate received (percentage)	2.75%
Floating interest rate paid (percentage)	2.57%
Notes due 2023 [Member]
Derivative [Line Items]
Notional amount	$ 200
Fixed interest rate received (percentage)	3.68%
Floating interest rate paid (percentage)	3.05%
Debentures due 2024 [Member]
Derivative [Line Items]
Notional amount	$ 25
Fixed interest rate received (percentage)	7.63%
Floating interest rate paid (percentage)	4.73%
Debentures due 2029 [Member]
Derivative [Line Items]
Notional amount	$ 50
Fixed interest rate received (percentage)	7.65%
Floating interest rate paid (percentage)	4.84%
Debentures due 2034 [Member]
Derivative [Line Items]
Notional amount	$ 25
Fixed interest rate received (percentage)	5.45%
Floating interest rate paid (percentage)	2.55%
London Interbank Offered Rate (LIBOR) [Member] | Notes due 2019 [Member]
Derivative [Line Items]
Debt instrument, term (in years)	3 months
Basis spread on variable rate (percentage)	5.07%
London Interbank Offered Rate (LIBOR) [Member] | Debentures due 2019 [Member]
Derivative [Line Items]
Debt instrument, term (in years)	6 months
Basis spread on variable rate (percentage)	3.84%
London Interbank Offered Rate (LIBOR) [Member] | Debentures due 2020 [Member]
Derivative [Line Items]
Debt instrument, term (in years)	1 month
Basis spread on variable rate (percentage)	2.12%
London Interbank Offered Rate (LIBOR) [Member] | Notes due 2021 [Member]
Derivative [Line Items]
Debt instrument, term (in years)	1 month
Basis spread on variable rate (percentage)	1.74%
London Interbank Offered Rate (LIBOR) [Member] | Debentures due 2022 [Member]
Derivative [Line Items]
Debt instrument, term (in years)	1 month
Basis spread on variable rate (percentage)	5.90%
London Interbank Offered Rate (LIBOR) [Member] | Senior notes due 2022 [Member]
Derivative [Line Items]
Debt instrument, term (in years)	1 month
Basis spread on variable rate (percentage)	0.58%
London Interbank Offered Rate (LIBOR) [Member] | Notes due 2023 [Member]
Derivative [Line Items]
Debt instrument, term (in years)	1 month
Basis spread on variable rate (percentage)	1.07%
London Interbank Offered Rate (LIBOR) [Member] | Debentures due 2024 [Member]
Derivative [Line Items]
Debt instrument, term (in years)	6 months
Basis spread on variable rate (percentage)	2.48%
London Interbank Offered Rate (LIBOR) [Member] | Debentures due 2029 [Member]
Derivative [Line Items]
Debt instrument, term (in years)	6 months
Basis spread on variable rate (percentage)	2.57%
London Interbank Offered Rate (LIBOR) [Member] | Debentures due 2034 [Member]
Derivative [Line Items]
Debt instrument, term (in years)	6 months
Basis spread on variable rate (percentage)	0.28%

XML

Derivative Financial Instruments and Hedging Activities - Forward Starting Floating-to-Fixed Interest Rate Swaps (Details) $ in Millions	12 Months Ended
	Dec. 31, 2018 USD ($)
Forward Starting Floating-to-Fixed Interest Rate Swaps One [Member]
Derivative [Line Items]
Notional amount	$ 50
Fixed interest rate to be paid (percentage)	3.10%
Floating interest rate to be received (percentage)	0.00%
Period (months)	3 months
Forward Starting Floating-to-Fixed Interest Rate Swaps Two [Member]
Derivative [Line Items]
Notional amount	$ 50
Fixed interest rate to be paid (percentage)	3.06%
Floating interest rate to be received (percentage)	0.00%
Period (months)	3 months
London Interbank Offered Rate (LIBOR) [Member] | Forward Starting Floating-to-Fixed Interest Rate Swaps One [Member]
Derivative [Line Items]
Basis spread on variable rate (percentage)	0.00%
London Interbank Offered Rate (LIBOR) [Member] | Forward Starting Floating-to-Fixed Interest Rate Swaps Two [Member]
Derivative [Line Items]
Basis spread on variable rate (percentage)	0.00%

XML

Derivative Financial Instruments and Hedging Activities - Amounts Recognized in Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Amounts recognized in accumulated other comprehensive income
Eaton's target percentage of managing intercompany balance sheet exposure	100.00%
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, before Tax	$ 8	$ (7)	$ (13)
Cash Flow Hedging [Member]
Amounts recognized in accumulated other comprehensive income
Gain (loss) reclassified from Accumulated other comprehensive loss	(16)	(17)
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, before Tax	(8)	(24)
Floating-to-fixed interest rate swaps | Interest expense - net [Member] | Cash Flow Hedging [Member]
Amounts recognized in accumulated other comprehensive income
Gain (loss) reclassified from Accumulated other comprehensive loss	0	0
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, before Tax	(4)	(15)
Interest Rate Locks [Member] | Interest expense - net [Member] | Cash Flow Hedging [Member]
Amounts recognized in accumulated other comprehensive income
Gain (loss) reclassified from Accumulated other comprehensive loss	0	0
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, before Tax	0	(9)
Currency exchange contracts | Cost of products sold [Member] | Cash Flow Hedging [Member]
Amounts recognized in accumulated other comprehensive income
Gain (loss) reclassified from Accumulated other comprehensive loss	(16)	(17)
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, before Tax	$ (4)	$ 0

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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	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Derivative Instruments, Gain (Loss) [Line Items]
Derivative designated as fair value hedges	$ 0	$ 0
Interest Rate Contract [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Derivative designated as fair value hedges	(30)	(33)
Related Long Term Debt Converted To Floating Interest Rates By Interest Rate Swaps [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Derivative designated as fair value hedges	$ 30	$ 33

XML

Accounts Receivable and Inventory - Narrative (Details) - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017
Accounts Receivable and Inventory [Abstract]
Allowance for doubtful accounts	$ 55	$ 57

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Accounts Receivable and Inventory - Components of Inventory (Details) - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017
Accounts Receivable and Inventory [Abstract]
Raw materials	$ 1,077	$ 953
Work-in-process	500	471
Finished goods	1,208	1,196
Total inventory	$ 2,785	$ 2,620

XML

Business Segment and Geographic Region Information - Other Information (Details) - Sales Revenue, Net [Member] - Customer Concentration Risk [Member] - customer	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Revenues from External Customers and Long-Lived Assets [Line Items]
Number of major customers	0	0	0
Concentration risk, percentage	10.00%	10.00%	10.00%

XML

Business Segment and Geographic Region Information - Business Segment Information (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Segment Reporting Information [Line Items]
Acquisition integration charges	$ 0	$ 4	$ 4
Business Segment Information
Net sales	21,609	20,404	19,747
Segment operating profit	3,630	3,214	2,958
Amortization of intangible assets	(368)
Interest expense - net	(271)	(246)	(233)
Gain on sale of business	0	1,077	0
Arbitration decision expense	275	0	0
Income before income taxes	2,424	3,368	2,118
Income tax expense	278	382	199
Net income	2,146	2,986	1,919
Less net income for noncontrolling interests	(1)	(1)	(3)
Net income attributable to Eaton ordinary shareholders	2,145	2,985	1,916
Electrical Products [Member]
Segment Reporting Information [Line Items]
Acquisition integration charges	0	4	3
Business Segment Information
Net sales	7,124	6,917	6,703
Segment operating profit	1,311	1,233	1,186
Electrical Systems and Services [Member]
Segment Reporting Information [Line Items]
Acquisition integration charges	0	0	1
Business Segment Information
Net sales	6,024	5,666	5,662
Segment operating profit	896	770	711
Hydraulics [Member]
Business Segment Information
Net sales	2,756	2,468	2,222
Segment operating profit	370	288	198
Aerospace [Member]
Business Segment Information
Net sales	1,896	1,744	1,753
Segment operating profit	398	332	335
Vehicle [Member]
Business Segment Information
Net sales	3,489	3,326	3,141
Segment operating profit	611	541	471
eMobility [Member]
Business Segment Information
Net sales	320	283	266
Segment operating profit	44	50	57
Corporate [Member]
Business Segment Information
Amortization of intangible assets	(382)	(388)	(392)
Interest expense - net	(271)	(246)	(233)
Pension and other postretirement benefits expense	(1)	(45)	(60)
Gain on sale of business	0	1,077	0
Arbitration decision expense	(275)	0	0
Other corporate expense - net	$ (277)	$ (244)	$ (155)

XML

Business Segment and Geographic Region Information - Acquisition Integration Charges by Segment (Details) - USD ($)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Acquisition Integration Charges and Transaction Costs [Line Items]
Acquisition integration charges	$ 0	$ 4,000,000	$ 4,000,000
Electrical Products [Member]
Acquisition Integration Charges and Transaction Costs [Line Items]
Acquisition integration charges	0	4,000,000	3,000,000
Electrical Systems and Services [Member]
Acquisition Integration Charges and Transaction Costs [Line Items]
Acquisition integration charges	0	0	1,000,000
Corporate, Non-Segment [Member]
Acquisition Integration Charges and Transaction Costs [Line Items]
Acquisition integration charges	$ 0	$ 0	$ 0

XML

Business Segment and Geographic Region Information - Identifiable Assets, Capital Expenditures for PPE, and Depreciation of PPE by Segment (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Segment Reporting Information [Line Items]
Total assets	$ 31,092	$ 32,623	$ 30,476
Goodwill	13,328	13,568	13,201
Other intangible assets	4,846	5,265	5,514
Capital expenditures for property, plant and equipment	565	520	497
Depreciation of property, plant and equipment	473	476	486
Electrical Products [Member]
Segment Reporting Information [Line Items]
Total assets	2,451	2,446	2,254
Goodwill	6,562	6,678	6,418
Capital expenditures for property, plant and equipment	135	130	128
Depreciation of property, plant and equipment	136	138	137
Electrical Systems and Services [Member]
Segment Reporting Information [Line Items]
Total assets	2,243	2,141	2,222
Goodwill	4,241	4,311	4,203
Capital expenditures for property, plant and equipment	101	83	78
Depreciation of property, plant and equipment	85	83	82
Hydraulics [Member]
Segment Reporting Information [Line Items]
Total assets	1,473	1,345	1,188
Goodwill	1,212	1,257	1,221
Capital expenditures for property, plant and equipment	106	96	92
Depreciation of property, plant and equipment	64	61	64
Aerospace [Member]
Segment Reporting Information [Line Items]
Total assets	935	938	830
Goodwill	941	947	938
Capital expenditures for property, plant and equipment	38	37	28
Depreciation of property, plant and equipment	26	26	27
Vehicle [Member]
Segment Reporting Information [Line Items]
Total assets	2,289	2,367	1,534
Goodwill	292	294	342
Capital expenditures for property, plant and equipment	143	141	142
Depreciation of property, plant and equipment	104	109	109
eMobility [Member]
Segment Reporting Information [Line Items]
Total assets	139	136	124
Goodwill	80	81	79
Capital expenditures for property, plant and equipment	4	4	6
Depreciation of property, plant and equipment	5	5	4
All Segments [Member]
Segment Reporting Information [Line Items]
Total assets	9,530	9,373	8,152
Capital expenditures for property, plant and equipment	527	491	474
Depreciation of property, plant and equipment	420	422	423
Corporate [Member]
Segment Reporting Information [Line Items]
Total assets	3,388	4,417	3,609
Capital expenditures for property, plant and equipment	38	29	23
Depreciation of property, plant and equipment	$ 53	$ 54	$ 63

XML

Business Segment and Geographic Region Information - Geographic Region Information (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Revenues from External Customers and Long-Lived Assets [Line Items]
Net sales	$ 21,609	$ 20,404	$ 19,747
Net property, plant and equipment	3,467	3,502	3,443
UNITED STATES
Revenues from External Customers and Long-Lived Assets [Line Items]
Net sales	12,034	11,222	10,937
Net property, plant and equipment	1,898	1,872	1,924
Canada
Revenues from External Customers and Long-Lived Assets [Line Items]
Net sales	931	942	898
Net property, plant and equipment	20	20	19
Latin America [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Net sales	1,442	1,485	1,448
Net property, plant and equipment	286	290	281
Europe [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Net sales	4,553	4,394	4,228
Net property, plant and equipment	723	769	681
Asia Pacific [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Net sales	2,649	2,361	2,236
Net property, plant and equipment	$ 540	$ 551	$ 538

XML

Condensed Consolidating Financial Statements (Narrative) (Details)	Dec. 31, 2018
Condensed Financial Information of Parent Company Only Disclosure [Abstract]
Eaton and certain other of Eaton's principal 100% owned subsidiaries full and unconditional guarantee of the Senior Notes, on a joint and several basis	100.00%

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Condensed Consolidating Financial Statements - Consolidating Statements of Comprehensive Income (Details) - USD ($) $ in Millions		12 Months Ended
	Jul. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Statement of Comprehensive Income [Abstract]
Net sales		$ 21,609	$ 20,404	$ 19,747
Cost of products sold		14,511	13,756	13,396
Selling and administrative expense		3,548	3,526	3,464
Research and development expense		584	584	587
Interest expense (income) - net		271	246	233
Gain on sale of business	$ 1,077		1,077
Arbitration decision expense		275	0	0
Other expense (income) - net		(4)	1	(51)
Equity in loss (earnings) of subsidiaries, net of tax		0	0	0
Intercompany expense (income) - net		0	0	0
Income before income taxes		2,424	3,368	2,118
Income tax expense (benefit)		278	382	199
Net income		2,146	2,986	1,919
Less net income for noncontrolling interests		(1)	(1)	(3)
Net income attributable to Eaton ordinary shareholders		2,145	2,985	1,916
Other comprehensive income (loss)		(741)	1,044	(585)
Total comprehensive income attributable to Eaton ordinary shareholders		1,404	4,029	1,331
Guarantors
Statement of Comprehensive Income [Abstract]
Net sales		7,131	6,803	6,603
Cost of products sold		5,172	4,997	4,865
Selling and administrative expense		769	781	771
Research and development expense		149	179	160
Interest expense (income) - net		15	20	18
Gain on sale of business			0
Arbitration decision expense		275
Other expense (income) - net		40	(67)	48
Equity in loss (earnings) of subsidiaries, net of tax		(3,555)	(4,673)	(3,023)
Intercompany expense (income) - net		2,215	1,242	1,278
Income before income taxes		2,051	4,324	2,486
Income tax expense (benefit)		(112)	(116)	42
Net income		2,163	4,440	2,444
Less net income for noncontrolling interests		0	0	0
Net income attributable to Eaton ordinary shareholders		2,163	4,440	2,444
Other comprehensive income (loss)		(716)	993	(527)
Total comprehensive income attributable to Eaton ordinary shareholders		1,447	5,433	1,917
Other subsidiaries
Statement of Comprehensive Income [Abstract]
Net sales		12,649	12,358	11,706
Cost of products sold		9,011	8,895	8,484
Selling and administrative expense		1,331	1,360	1,312
Research and development expense		287	225	231
Interest expense (income) - net		(18)	(20)	(14)
Gain on sale of business			517
Arbitration decision expense		0
Other expense (income) - net		(52)	(49)	(71)
Equity in loss (earnings) of subsidiaries, net of tax		(2,408)	(4,619)	(2,656)
Intercompany expense (income) - net		(2,179)	(1,054)	(1,487)
Income before income taxes		6,677	8,137	5,907
Income tax expense (benefit)		428	111	132
Net income		6,249	8,026	5,775
Less net income for noncontrolling interests		(1)	(3)	(5)
Net income attributable to Eaton ordinary shareholders		6,248	8,023	5,770
Other comprehensive income (loss)		(1,575)	2,281	(1,341)
Total comprehensive income attributable to Eaton ordinary shareholders		4,673	10,304	4,429
Eaton Corporation plc
Statement of Comprehensive Income [Abstract]
Net sales		0	0	0
Cost of products sold		0	0	0
Selling and administrative expense		10	11	9
Research and development expense		0	0	0
Interest expense (income) - net		0	0	0
Gain on sale of business			0
Arbitration decision expense		0
Other expense (income) - net		(29)	79	(35)
Equity in loss (earnings) of subsidiaries, net of tax		(2,302)	(3,644)	(2,433)
Intercompany expense (income) - net		176	569	543
Income before income taxes		2,145	2,985	1,916
Income tax expense (benefit)		0	0	0
Net income		2,145	2,985	1,916
Less net income for noncontrolling interests		0	0	0
Net income attributable to Eaton ordinary shareholders		2,145	2,985	1,916
Other comprehensive income (loss)		(741)	1,044	(585)
Total comprehensive income attributable to Eaton ordinary shareholders		1,404	4,029	1,331
Eaton Corporation
Statement of Comprehensive Income [Abstract]
Net sales		7,138	6,659	6,447
Cost of products sold		5,644	5,276	5,057
Selling and administrative expense		1,438	1,374	1,372
Research and development expense		148	180	196
Interest expense (income) - net		273	245	230
Gain on sale of business			560
Arbitration decision expense		0
Other expense (income) - net		37	38	7
Equity in loss (earnings) of subsidiaries, net of tax		(1,089)	(938)	(556)
Intercompany expense (income) - net		(212)	(757)	(334)
Income before income taxes		899	1,801	475
Income tax expense (benefit)		(39)	389	24
Net income		938	1,412	451
Less net income for noncontrolling interests		0	0	0
Net income attributable to Eaton ordinary shareholders		938	1,412	451
Other comprehensive income (loss)		(110)	80	81
Total comprehensive income attributable to Eaton ordinary shareholders		828	1,492	532
Consolidating adjustments
Statement of Comprehensive Income [Abstract]
Net sales		(5,309)	(5,416)	(5,009)
Cost of products sold		(5,316)	(5,412)	(5,010)
Selling and administrative expense		0	0	0
Research and development expense		0	0	0
Interest expense (income) - net		1	1	(1)
Gain on sale of business			0
Arbitration decision expense		0
Other expense (income) - net		0	0	0
Equity in loss (earnings) of subsidiaries, net of tax		9,354	13,874	8,668
Intercompany expense (income) - net		0	0	0
Income before income taxes		(9,348)	(13,879)	(8,666)
Income tax expense (benefit)		1	(2)	1
Net income		(9,349)	(13,877)	(8,667)
Less net income for noncontrolling interests		0	2	2
Net income attributable to Eaton ordinary shareholders		(9,349)	(13,875)	(8,665)
Other comprehensive income (loss)		2,401	(3,354)	1,787
Total comprehensive income attributable to Eaton ordinary shareholders		$ (6,948)	$ (17,229)	$ (6,878)

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Condensed Consolidating Financial Statements - Condensed Consolidating Balance Sheets (Details) - USD ($) $ in Millions	Dec. 31, 2018	Jan. 01, 2018	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Current assets
Cash	$ 283		$ 561	$ 543	$ 268
Short-term investments	157		534
Accounts receivable - net	3,858	$ 3,844	3,943
Intercompany accounts receivable	0		0
Inventory	2,785		2,620
Prepaid expenses and other current assets	507		679
Total current assets	7,590		8,337
Property, plant and equipment - net	3,467		3,502	3,443
Other noncurrent assets
Goodwill	13,328		13,568	13,201
Other intangible assets	4,846		5,265	5,514
Deferred income taxes	293	254	253
Investment in subsidiaries	0		0
Intercompany loans receivable	0		0
Other assets	1,568		1,698
Total assets	31,092		32,623	30,476
Current liabilities
Short-term debt	414		6
Current portion of long-term debt	339		578
Accounts payable	2,130		2,166
Intercompany accounts payable	0		0
Accrued compensation	457		453
Other current liabilities	1,814	1,905	1,872
Total current liabilities	5,154		5,075
Noncurrent liabilities
Long-term debt	6,768		7,167
Pension liabilities	1,304		1,226
Other postretirement benefits liabilities	321		362
Deferred income taxes	349		538
Intercompany loans payable	0		0
Other noncurrent liabilities	1,054		965
Total noncurrent liabilities	9,796		10,258
Shareholders’ equity
Eaton shareholders’ equity	16,107	$ 17,251	17,253
Noncontrolling interests	35		37
Total equity	16,142		17,290	14,998
Total liabilities and equity	31,092		32,623
Guarantors
Current assets
Cash	0		18	12	9
Short-term investments	0		0
Accounts receivable - net	1,400		1,376
Intercompany accounts receivable	1,851		5,117
Inventory	766		737
Prepaid expenses and other current assets	32		145
Total current assets	4,049		7,393
Property, plant and equipment - net	678		702
Other noncurrent assets
Goodwill	6,705		6,705
Other intangible assets	3,054		3,206
Deferred income taxes	0		6
Investment in subsidiaries	71,334		75,661
Intercompany loans receivable	8,406		2,909
Other assets	117		166
Total assets	94,343		96,748
Current liabilities
Short-term debt	0		0
Current portion of long-term debt	0		36
Accounts payable	416		328
Intercompany accounts payable	3,206		4,381
Accrued compensation	71		65
Other current liabilities	259		317
Total current liabilities	3,952		5,127
Noncurrent liabilities
Long-term debt	945		976
Pension liabilities	130		89
Other postretirement benefits liabilities	83		96
Deferred income taxes	508		607
Intercompany loans payable	66,507		68,685
Other noncurrent liabilities	291		273
Total noncurrent liabilities	68,464		70,726
Shareholders’ equity
Eaton shareholders’ equity	21,927		20,895
Noncontrolling interests	0		0
Total equity	21,927		20,895
Total liabilities and equity	94,343		96,748
Other subsidiaries
Current assets
Cash	261		360	438	232
Short-term investments	157		534
Accounts receivable - net	1,975		2,085
Intercompany accounts receivable	2,968		2,715
Inventory	1,555		1,493
Prepaid expenses and other current assets	354		277
Total current assets	7,270		7,464
Property, plant and equipment - net	1,946		1,941
Other noncurrent assets
Goodwill	5,293		5,547
Other intangible assets	1,664		1,921
Deferred income taxes	288		215
Investment in subsidiaries	25,551		39,556
Intercompany loans receivable	59,147		61,427
Other assets	705		784
Total assets	101,864		118,855
Current liabilities
Short-term debt	26		6
Current portion of long-term debt	1		0
Accounts payable	1,218		1,305
Intercompany accounts payable	2,029		1,403
Accrued compensation	251		260
Other current liabilities	1,002		989
Total current liabilities	4,527		3,963
Noncurrent liabilities
Long-term debt	7		9
Pension liabilities	791		796
Other postretirement benefits liabilities	72		74
Deferred income taxes	175		255
Intercompany loans payable	1,399		1,137
Other noncurrent liabilities	374		379
Total noncurrent liabilities	2,818		2,650
Shareholders’ equity
Eaton shareholders’ equity	94,484		112,205
Noncontrolling interests	35		37
Total equity	94,519		112,242
Total liabilities and equity	101,864		118,855
Eaton Corporation plc
Current assets
Cash	1		0	1	0
Short-term investments	0		0
Accounts receivable - net	0		0
Intercompany accounts receivable	0		8
Inventory	0		0
Prepaid expenses and other current assets	0		0
Total current assets	1		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	16,476		15,045
Intercompany loans receivable	1,508		3,122
Other assets	0		0
Total assets	17,985		18,175
Current liabilities
Short-term debt	0		0
Current portion of long-term debt	0		0
Accounts payable	0		0
Intercompany accounts payable	32		4
Accrued compensation	0		0
Other current liabilities	30		1
Total current liabilities	62		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	1,816		917
Other noncurrent liabilities	0		0
Total noncurrent liabilities	1,816		917
Shareholders’ equity
Eaton shareholders’ equity	16,107		17,253
Noncontrolling interests	0		0
Total equity	16,107		17,253
Total liabilities and equity	17,985		18,175
Eaton Corporation
Current assets
Cash	21		183	92	27
Short-term investments	0		0
Accounts receivable - net	483		482
Intercompany accounts receivable	1,575		2,864
Inventory	540		473
Prepaid expenses and other current assets	107		229
Total current assets	2,726		4,231
Property, plant and equipment - net	843		859
Other noncurrent assets
Goodwill	1,330		1,316
Other intangible assets	128		138
Deferred income taxes	340		356
Investment in subsidiaries	7,658		7,942
Intercompany loans receivable	5,843		7,089
Other assets	746		748
Total assets	19,614		22,679
Current liabilities
Short-term debt	388		0
Current portion of long-term debt	338		542
Accounts payable	496		533
Intercompany accounts payable	1,127		4,916
Accrued compensation	135		128
Other current liabilities	525		566
Total current liabilities	3,009		6,685
Noncurrent liabilities
Long-term debt	5,814		6,180
Pension liabilities	383		341
Other postretirement benefits liabilities	166		192
Deferred income taxes	1		0
Intercompany loans payable	5,182		3,808
Other noncurrent liabilities	389		313
Total noncurrent liabilities	11,935		10,834
Shareholders’ equity
Eaton shareholders’ equity	4,670		5,160
Noncontrolling interests	0		0
Total equity	4,670		5,160
Total liabilities and equity	19,614		22,679
Consolidating adjustments
Current assets
Cash	0		0	$ 0	$ 0
Short-term investments	0		0
Accounts receivable - net	0		0
Intercompany accounts receivable	(6,394)		(10,704)
Inventory	(76)		(83)
Prepaid expenses and other current assets	14		28
Total current assets	(6,456)		(10,759)
Property, plant and equipment - net	0		0
Other noncurrent assets
Goodwill	0		0
Other intangible assets	0		0
Deferred income taxes	(335)		(324)
Investment in subsidiaries	(121,019)		(138,204)
Intercompany loans receivable	(74,904)		(74,547)
Other assets	0		0
Total assets	(202,714)		(223,834)
Current liabilities
Short-term debt	0		0
Current portion of long-term debt	0		0
Accounts payable	0		0
Intercompany accounts payable	(6,394)		(10,704)
Accrued compensation	0		0
Other current liabilities	(2)		(1)
Total current liabilities	(6,396)		(10,705)
Noncurrent liabilities
Long-term debt	2		2
Pension liabilities	0		0
Other postretirement benefits liabilities	0		0
Deferred income taxes	(335)		(324)
Intercompany loans payable	(74,904)		(74,547)
Other noncurrent liabilities	0		0
Total noncurrent liabilities	(75,237)		(74,869)
Shareholders’ equity
Eaton shareholders’ equity	(121,081)		(138,260)
Noncontrolling interests	0		0
Total equity	(121,081)		(138,260)
Total liabilities and equity	$ (202,714)		$ (223,834)

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Condensed Consolidating Financial Statements - Condensed Consolidating Statements of Cash Flows (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Condensed Consolidating Statements of Cash Flows [Line Items]
Net cash provided by (used in) operating activities	$ 2,658	$ 2,666	$ 2,570
Investing activities
Capital expenditures for property, plant and equipment	(565)	(520)	(497)
Cash received from (paid for) acquisitions of businesses, net of cash acquired		0
Sales (purchases) of short-term investments - net	355	(298)	(40)
Investments in affiliates	0	0	0
Return of capital contributions from affiliates			0
Return of investments in affiliates		0
Loans to affiliates	0	0	0
Repayments of loans from affiliates	0	0	0
Proceeds from sale of business	0	607	0
Payments for settlement of currency exchange contracts not designated as hedges - net	(110)	0	0
Other - net	(78)	(6)	8
Net cash used in investing activities	(398)	(217)	(529)
Financing activities
Proceeds from borrowings	410	1,000	631
Payments on borrowings	(574)	(1,554)	(653)
Proceeds from borrowings from affiliates	0	0	0
Payments on borrowings from affiliates	0	0	0
Capital contributions from affiliates	0	0	0
Return of capital to affiliates		0	0
Other intercompany financing activities	0	0	0
Cash dividends paid	(1,149)	(1,068)	(1,037)
Cash dividends paid to affiliates	0	0
Exercise of employee stock options	29	66	74
Repurchase of shares	(1,271)	(850)	(730)
Employee taxes paid from shares withheld	(24)	(22)	(18)
Other - net	(2)	(14)	(5)
Net cash used in financing activities	(2,581)	(2,442)	(1,738)
Effect of currency on cash	43	11	(28)
Total increase (decrease) in cash	(278)	18	275
Cash at the beginning of the period	561	543	268
Cash at the end of the period	283	561	543
Guarantors
Condensed Consolidating Statements of Cash Flows [Line Items]
Net cash provided by (used in) operating activities	175	(56)	(209)
Investing activities
Capital expenditures for property, plant and equipment	(93)	(113)	(118)
Cash received from (paid for) acquisitions of businesses, net of cash acquired		(92)
Sales (purchases) of short-term investments - net	0	0	2
Investments in affiliates	0	0	(120)
Return of capital contributions from affiliates			47
Return of investments in affiliates		90
Loans to affiliates	(85)	(415)	(1,013)
Repayments of loans from affiliates	1,044	384	335
Proceeds from sale of business		0
Payments for settlement of currency exchange contracts not designated as hedges - net	0
Other - net	23	9	42
Net cash used in investing activities	889	(137)	(825)
Financing activities
Proceeds from borrowings	0	0	610
Payments on borrowings	(35)	(297)	(233)
Proceeds from borrowings from affiliates	318	991	1,120
Payments on borrowings from affiliates	(709)	(353)	(1,844)
Capital contributions from affiliates	0	90	1,370
Return of capital to affiliates		0	0
Other intercompany financing activities	(651)	574	21
Cash dividends paid	0	0	0
Cash dividends paid to affiliates	0	(800)
Exercise of employee stock options	0	0	0
Repurchase of shares	0	0	0
Employee taxes paid from shares withheld	(5)	(5)	(3)
Other - net	0	(1)	(4)
Net cash used in financing activities	(1,082)	199	1,037
Effect of currency on cash	0	0	0
Total increase (decrease) in cash	(18)	6	3
Cash at the beginning of the period	18	12	9
Cash at the end of the period	0	18	12
Other subsidiaries
Condensed Consolidating Statements of Cash Flows [Line Items]
Net cash provided by (used in) operating activities	2,696	4,507	3,041
Investing activities
Capital expenditures for property, plant and equipment	(375)	(318)	(287)
Cash received from (paid for) acquisitions of businesses, net of cash acquired		92
Sales (purchases) of short-term investments - net	355	(298)	(42)
Investments in affiliates	0	(90)	(1,370)
Return of capital contributions from affiliates			0
Return of investments in affiliates		0
Loans to affiliates	(6,441)	(6,308)	(7,850)
Repayments of loans from affiliates	4,455	3,479	5,616
Proceeds from sale of business		269
Payments for settlement of currency exchange contracts not designated as hedges - net	(121)
Other - net	(23)	30	(25)
Net cash used in investing activities	(2,150)	(3,144)	(3,958)
Financing activities
Proceeds from borrowings	22	0	0
Payments on borrowings	(1)	(7)	(12)
Proceeds from borrowings from affiliates	100	441	106
Payments on borrowings from affiliates	(925)	(87)	(42)
Capital contributions from affiliates	40	298	1,378
Return of capital to affiliates		(90)	(47)
Other intercompany financing activities	175	(1,190)	(227)
Cash dividends paid	0	0	0
Cash dividends paid to affiliates	(95)	(809)
Exercise of employee stock options	0	0	0
Repurchase of shares	0	0	0
Employee taxes paid from shares withheld	(3)	(3)	(3)
Other - net	(1)	(5)	(2)
Net cash used in financing activities	(688)	(1,452)	1,151
Effect of currency on cash	43	11	(28)
Total increase (decrease) in cash	(99)	(78)	206
Cash at the beginning of the period	360	438	232
Cash at the end of the period	261	360	438
Eaton Corporation plc
Condensed Consolidating Statements of Cash Flows [Line Items]
Net cash provided by (used in) operating activities	(26)	258	(253)
Investing activities
Capital expenditures for property, plant and equipment	0	0	0
Cash received from (paid for) acquisitions of businesses, net of cash acquired		0
Sales (purchases) of short-term investments - net	0	0	0
Investments in affiliates	(4)	(190)	(1,250)
Return of capital contributions from affiliates			0
Return of investments in affiliates		0
Loans to affiliates	0	0	0
Repayments of loans from affiliates	0	0	0
Proceeds from sale of business		0
Payments for settlement of currency exchange contracts not designated as hedges - net	0
Other - net	0	0	0
Net cash used in investing activities	(4)	(190)	(1,250)
Financing activities
Proceeds from borrowings	0	0	0
Payments on borrowings	0	0	0
Proceeds from borrowings from affiliates	3,756	2,605	3,843
Payments on borrowings from affiliates	(1,334)	(822)	(646)
Capital contributions from affiliates	0	0	0
Return of capital to affiliates		0	0
Other intercompany financing activities	0	0	0
Cash dividends paid	(1,149)	(1,068)	(1,037)
Cash dividends paid to affiliates	0	0
Exercise of employee stock options	29	66	74
Repurchase of shares	(1,271)	(850)	(730)
Employee taxes paid from shares withheld	0	0	0
Other - net	0	0	0
Net cash used in financing activities	31	(69)	1,504
Effect of currency on cash	0	0	0
Total increase (decrease) in cash	1	(1)	1
Cash at the beginning of the period	0	1	0
Cash at the end of the period	1	0	1
Eaton Corporation
Condensed Consolidating Statements of Cash Flows [Line Items]
Net cash provided by (used in) operating activities	(92)	(434)	(9)
Investing activities
Capital expenditures for property, plant and equipment	(97)	(89)	(92)
Cash received from (paid for) acquisitions of businesses, net of cash acquired		0
Sales (purchases) of short-term investments - net	0	0	0
Investments in affiliates	(36)	(108)	(8)
Return of capital contributions from affiliates			0
Return of investments in affiliates		0
Loans to affiliates	(100)	(444)	(251)
Repayments of loans from affiliates	647	303	1,293
Proceeds from sale of business		338
Payments for settlement of currency exchange contracts not designated as hedges - net	11
Other - net	(78)	(45)	(9)
Net cash used in investing activities	347	(45)	933
Financing activities
Proceeds from borrowings	388	1,000	21
Payments on borrowings	(538)	(1,250)	(408)
Proceeds from borrowings from affiliates	2,452	3,130	4,045
Payments on borrowings from affiliates	(3,178)	(2,904)	(4,712)
Capital contributions from affiliates	0	0	0
Return of capital to affiliates		0	0
Other intercompany financing activities	476	616	206
Cash dividends paid	0	0	0
Cash dividends paid to affiliates	0	0
Exercise of employee stock options	0	0	0
Repurchase of shares	0	0	0
Employee taxes paid from shares withheld	(16)	(14)	(12)
Other - net	(1)	(8)	1
Net cash used in financing activities	(417)	570	(859)
Effect of currency on cash	0	0	0
Total increase (decrease) in cash	(162)	91	65
Cash at the beginning of the period	183	92	27
Cash at the end of the period	21	183	92
Consolidating adjustments
Condensed Consolidating Statements of Cash Flows [Line Items]
Net cash provided by (used in) operating activities	(95)	(1,609)	0
Investing activities
Capital expenditures for property, plant and equipment	0	0	0
Cash received from (paid for) acquisitions of businesses, net of cash acquired		0
Sales (purchases) of short-term investments - net	0	0	0
Investments in affiliates	40	388	2,748
Return of capital contributions from affiliates			(47)
Return of investments in affiliates		(90)
Loans to affiliates	6,626	7,167	9,114
Repayments of loans from affiliates	(6,146)	(4,166)	(7,244)
Proceeds from sale of business		0
Payments for settlement of currency exchange contracts not designated as hedges - net	0
Other - net	0	0	0
Net cash used in investing activities	520	3,299	4,571
Financing activities
Proceeds from borrowings	0	0	0
Payments on borrowings	0	0	0
Proceeds from borrowings from affiliates	(6,626)	(7,167)	(9,114)
Payments on borrowings from affiliates	6,146	4,166	7,244
Capital contributions from affiliates	(40)	(388)	(2,748)
Return of capital to affiliates		90	47
Other intercompany financing activities	0	0	0
Cash dividends paid	0	0	0
Cash dividends paid to affiliates	95	1,609
Exercise of employee stock options	0	0	0
Repurchase of shares	0	0	0
Employee taxes paid from shares withheld	0	0	0
Other - net	0	0	0
Net cash used in financing activities	(425)	(1,690)	(4,571)
Effect of currency on cash	0	0	0
Total increase (decrease) in cash	0	0	0
Cash at the beginning of the period	0	0	0
Cash at the end of the period	$ 0	$ 0	$ 0