CONDENSED CONSOLIDATING FINANCIAL STATEMENTS

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

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

CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME FOR THE THREE MONTHS ENDED MARCH 31, 2014

	Eaton Corporation plc			Eaton Corporation			Guarantors			Other subsidiaries			Consolidating adjustments			Total
Net sales	$	—		$	1,667		$	1,641		$	3,291		$	(1,107	)	$	5,492

Cost of products sold	—			1,342			1,218			2,392			(1,094		)	3,858
Selling and administrative expense	2			361			200			399			—			962
Research and development expense	—			60			50			52			—			162
Interest expense (income) - net	—			59			7			(6		)	2			62
Other expense (income) - net	—			5			3			(13		)	—			(5		)
Equity in (earnings) loss of subsidiaries, net of tax	(469		)	(207		)	(485		)	(201		)	1,362			—
Intercompany expense (income) - net	28			(71		)	120			(77		)	—			—
Income before income taxes	439			118			528			745			(1,377		)	453
Income tax (benefit) expense	—			(25		)	(7		)	49			(5		)	12
Net income	439			143			535			696			(1,372		)	441
Less net income for noncontrolling interests	—			—			—			(2		)	—			(2		)
Net income attributable to Eaton ordinary shareholders	$	439		$	143		$	535		$	694		$	(1,372	)	$	439

Other comprehensive income (loss)	$	3		$	28		$	23		$	(15	)	$	(36	)	$	3
Total comprehensive income attributable to Eaton ordinary shareholders	$	442		$	171		$	558		$	679		$	(1,408	)	$	442

CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME FOR THE THREE MONTHS ENDED MARCH 31, 2013

	Eaton Corporation plc			Eaton Corporation			Guarantors			Other subsidiaries			Consolidating adjustments			Total
Net sales	$	—		$	1,588		$	1,573		$	3,273		$	(1,124	)	$	5,310

Cost of products sold	—			1,239			1,195			2,425			(1,124		)	3,735
Selling and administrative expense	2			341			198			417			—			958
Research and development expense	—			58			47			47			—			152
Interest expense (income) - net	—			74			7			(6		)	—			75
Other (income) expense - net	—			(5		)	8			(13		)	—			(10		)
Equity in (earnings) loss of subsidiaries, net of tax	(444		)	(309		)	(567		)	(166		)	1,486			—
Intercompany expense (income) - net	64			(102		)	176			(138		)	—			—
Income before income taxes	378			292			509			707			(1,486		)	400
Income tax (benefit) expense	—			(2		)	(37		)	59			—			20
Net income	378			294			546			648			(1,486		)	380
Less net income for noncontrolling interests	—			—			—			(2		)	—			(2		)
Net income attributable to Eaton ordinary shareholders	$	378		$	294		$	546		$	646		$	(1,486	)	$	378

Other comprehensive loss	$	(235	)	$	(22	)	$	(233	)	$	(391	)	$	646		$	(235	)
Total comprehensive income attributable to Eaton ordinary shareholders	$	143		$	272		$	313		$	255		$	(840	)	$	143

CONDENSED CONSOLIDATING BALANCE SHEETS MARCH 31, 2014

	Eaton Corporation plc		Eaton Corporation		Guarantors		Other subsidiaries		Consolidating adjustments			Total
Assets
Current assets
Cash	$	8	$	46	$	12	$	718	$	—		$	784
Short-term investments	—		—		35		325		—			360
Accounts receivable - net	—		506		986		2,397		—			3,889
Intercompany accounts receivable	10		682		3,508		4,900		(9,100		)	—
Inventory	—		368		656		1,558		(50		)	2,532
Prepaid expenses and other current assets	—		473		156		476		13			1,118
Total current assets	18		2,075		5,353		10,374		(9,137		)	8,683

Property, plant and equipment - net	—		966		765		2,075		—			3,806

Other noncurrent assets
Goodwill	—		1,382		6,301		6,767		—			14,450
Other intangible assets	—		207		3,949		2,922		—			7,078
Deferred income taxes	—		826		12		153		(734		)	257
Investment in subsidiaries	25,427		9,057		41,344		8,701		(84,529		)	—
Intercompany loans receivable	—		7,872		2,643		19,840		(30,355		)	—
Other assets	—		417		183		388		—			988
Total assets	$	25,445	$	22,802	$	60,550	$	51,220	$	(124,755	)	$	35,262

Liabilities and shareholders’ equity
Current liabilities
Short-term debt	$	—	$	—	$	—	$	8	$	—		$	8
Current portion of long-term debt	—		301		1		14		—			316
Accounts payable	—		475		391		1,210		—			2,076
Intercompany accounts payable	10		3,609		3,626		1,855		(9,100		)	—
Accrued compensation	—		48		42		244		—			334
Other current liabilities	10		667		381		1,017		(4		)	2,071
Total current liabilities	20		5,100		4,441		4,348		(9,104		)	4,805

Noncurrent liabilities
Long-term debt	—		7,720		1,259		17		(5		)	8,991
Pension liabilities	—		375		79		774		—			1,228
Other postretirement benefits liabilities	—		402		171		93		—			666
Deferred income taxes	—		—		1,287		743		(734		)	1,296
Intercompany loans payable	8,388		2,669		18,084		1,214		(30,355		)	—
Other noncurrent liabilities	—		545		155		465		—			1,165
Total noncurrent liabilities	8,388		11,711		21,035		3,306		(31,094		)	13,346

Shareholders’ equity
Eaton shareholders' equity	17,037		5,991		35,074		43,499		(84,564		)	17,037
Noncontrolling interests	—		—		—		67		7			74
Total equity	17,037		5,991		35,074		43,566		(84,557		)	17,111
Total liabilities and equity	$	25,445	$	22,802	$	60,550	$	51,220	$	(124,755	)	$	35,262

CONDENSED CONSOLIDATING BALANCE SHEETS DECEMBER 31, 2013

	Eaton Corporation plc		Eaton Corporation		Guarantors		Other subsidiaries		Consolidating adjustments			Total
Assets
Current assets
Cash	$	3	$	51	$	10	$	851	$	—		$	915
Short-term investments	—		—		134		660		—			794
Accounts receivable - net	—		473		922		2,253		—			3,648
Intercompany accounts receivable	5		471		3,368		4,470		(8,314		)	—
Inventory	—		344		609		1,466		(37		)	2,382
Prepaid expenses and other current assets	—		458		175		350		9			992
Total current assets	8		1,797		5,218		10,050		(8,342		)	8,731

Property, plant and equipment - net	—		982		761		2,090		—			3,833

Other noncurrent assets
Goodwill	—		1,382		6,350		6,763		—			14,495
Other intangible assets	—		211		3,996		2,979		—			7,186
Deferred income taxes	—		839		3		145		(747		)	240
Investment in subsidiaries	24,940		8,853		40,776		8,473		(83,042		)	—
Intercompany loans receivable	—		8,019		2,518		18,776		(29,313		)	—
Other assets	—		450		186		370		—			1,006
Total assets	$	24,948	$	22,533	$	59,808	$	49,646	$	(121,444	)	$	35,491

Liabilities and shareholders’ equity
Current liabilities
Short-term debt	$	—	$	—	$	—	$	13	$	—		$	13
Current portion of long-term debt	—		552		—		15		—			567
Accounts payable	—		440		380		1,140		—			1,960
Intercompany accounts payable	4		3,751		3,288		1,271		(8,314		)	—
Accrued compensation	—		140		37		284		—			461
Other current liabilities	5		547		400		965		(4		)	1,913
Total current liabilities	9		5,430		4,105		3,688		(8,318		)	4,914

Noncurrent liabilities
Long-term debt	—		7,693		1,266		16		(6		)	8,969
Pension liabilities	—		546		131		788		—			1,465
Other postretirement benefits liabilities	—		402		171		95		—			668
Deferred income taxes	—		—		1,303		757		(747		)	1,313
Intercompany loans payable	8,148		2,113		18,207		845		(29,313		)	—
Other noncurrent liabilities	—		652		162		485		—			1,299
Total noncurrent liabilities	8,148		11,406		21,240		2,986		(30,066		)	13,714

Shareholders’ equity
Eaton shareholders' equity	16,791		5,697		34,463		42,906		(83,066		)	16,791
Noncontrolling interests	—		—		—		66		6			72
Total equity	16,791		5,697		34,463		42,972		(83,060		)	16,863
Total liabilities and equity	$	24,948	$	22,533	$	59,808	$	49,646	$	(121,444	)	$	35,491

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS FOR THE THREE MONTHS ENDED MARCH 31, 2014

	Eaton Corporation plc			Eaton Corporation			Guarantors			Other subsidiaries			Consolidating adjustments			Total
Net cash provided by (used in) operating activities	$	17		$	(463	)	$	182		$	276		$	—		$	12

Investing activities
Capital expenditures for property, plant and equipment	—			(25		)	(29		)	(56		)	—			(110		)
Sales of short-term investments - net	—			—			98			333			—			431
Loans to affiliates	—			(7		)	—			(1,056		)	1,063			—
Repayments of loans from affiliates	—			171			—			814			(985		)	—
Proceeds from sale of business	—			—			—			3			—			3
Other - net	—			(13		)	(1		)	(6		)	—			(20		)
Net cash provided by investing activities	—			126			68			32			78			304

Financing activities
Payments on borrowings	—			(251		)	—			(6		)	—			(257		)
Proceeds from borrowings from affiliates	—			946			110			7			(1,063		)	—
Payments on borrowings from affiliates	—			(510		)	(304		)	(171		)	985			—
Other intercompany financing activities	217			104			(54		)	(267		)	—			—
Cash dividends paid	(229		)	—			—			—			—			(229		)
Exercise of employee stock options	—			23			—			—			—			23
Excess tax benefit from equity-based compensation	—			20			—			—			—			20
Net cash (used in) provided by financing activities	(12		)	332			(248		)	(437		)	(78		)	(443		)

Effect of currency on cash	—			—			—			(4		)	—			(4		)
Total increase (decrease) in cash	5			(5		)	2			(133		)	—			(131		)
Cash at the beginning of the period	3			51			10			851			—			915
Cash at the end of the period	$	8		$	46		$	12		$	718		$	—		$	784

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS FOR THE THREE MONTHS ENDED MARCH 31, 2013

	Eaton Corporation plc			Eaton Corporation			Guarantors			Other subsidiaries			Consolidating adjustments			Total
Net cash provided by (used in) operating activities	$	62		$	(301	)	$	778		$	(439	)	$	—		$	100

Investing activities
Capital expenditures for property, plant and equipment	—			(51		)	(18		)	(53		)	—			(122		)
Sales of short-term investments - net	—			25			31			76			—			132
Loans to affiliates	—			(36		)	—			(438		)	474			—
Repayments of loans from affiliates	—			28			82			303			(413		)	—
Proceeds from sale of business	—			—			—			761			—			761
Other - net	—			4			(3		)	1			—			2
Net cash (used in) provided by investing activities	—			(30		)	92			650			61			773

Financing activities
Payments on borrowings	—			(676		)	(8		)	(3		)	—			(687		)
Proceeds from borrowings from affiliates	—			437			1			36			(474		)	—
Payments on borrowings from affiliates	—			(131		)	(171		)	(111		)	413			—
Other intercompany financing activities	129			687			(692		)	(124		)	—			—
Cash dividends paid	(194		)	—			—			—			—			(194		)
Exercise of employee stock options	—			56			—			—			—			56
Excess tax benefit from equity-based compensation	—			16			—			—			—			16
Other - net	—			—			—			(1		)	—			(1		)
Net cash (used in) provided by financing activities	(65		)	389			(870		)	(203		)	(61		)	(810		)

Effect of currency on cash	—			—			—			(1		)	—			(1		)
Total (decrease) increase in cash	(3		)	58			—			7			—			62
Cash at the beginning of the period	7			54			14			502			—			577
Cash at the end of the period	$	4		$	112		$	14		$	509		$	—		$	639