

CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME FOR THE THREE MONTHS ENDED JUNE 30, 2015
	Eaton Corporation plc			Eaton Corporation			Guarantors			Other subsidiaries			Consolidating adjustments			Total
Net sales	$	—		$	1,806		$	1,705		$	3,248		$	(1,387	)	$	5,372

Cost of products sold	—			1,433			1,273			2,322			(1,353		)	3,675
Selling and administrative expense	2			368			172			359			—			901
Research and development expense	—			66			49			43			—			158
Interest expense (income) - net	—			58			5			(2		)	(2		)	59
Other expense (income) - net	—			11			(7		)	(23		)	—			(19		)
Equity in earnings of subsidiaries, net of tax	(619		)	(62		)	(805		)	(129		)	1,615			—
Intercompany expense (income) - net	82			(267		)	481			(296		)	—			—
Income before income taxes	535			199			537			974			(1,647		)	598
Income tax expense (benefit)	—			41			(38		)	75			(15		)	63
Net income	535			158			575			899			(1,632		)	535
Less net income for noncontrolling interests	—			—			—			(1		)	1			—
Net income attributable to Eaton ordinary shareholders	$	535		$	158		$	575		$	898		$	(1,631	)	$	535

Other comprehensive income	$	230		$	16		$	234		$	282		$	(532	)	$	230
Total comprehensive income attributable to Eaton ordinary shareholders	$	765		$	174		$	809		$	1,180		$	(2,163	)	$	765



CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME FOR THE THREE MONTHS ENDED JUNE 30, 2014
	Eaton Corporation plc			Eaton Corporation			Guarantors			Other subsidiaries			Consolidating adjustments			Total
Net sales	$	—		$	1,750		$	1,779		$	3,354		$	(1,116	)	$	5,767

Cost of products sold	—			1,378			1,288			2,473			(1,114		)	4,025
Selling and administrative expense	(2		)	370			193			423			—			984
Litigation settlements	—			644			—			—			—			644
Research and development expense	—			62			52			54			—			168
Interest expense (income) - net	—			55			6			(8		)	2			55
Other income - net	—			(50		)	(95		)	(21		)	—			(166		)
Equity in (earnings) loss of subsidiaries, net of tax	(231		)	(194		)	(256		)	214			467			—
Intercompany expense (income) - net	62			(47		)	146			(161		)	—			—
Income (loss) before income taxes	171			(468		)	445			380			(471		)	57
Income tax (benefit) expense	—			(255		)	78			63			(1		)	(115		)
Net income (loss)	171			(213		)	367			317			(470		)	172
Less net income for noncontrolling interests	—			—			—			(1		)	—			(1		)
Net income (loss) attributable to Eaton ordinary shareholders	$	171		$	(213	)	$	367		$	316		$	(470	)	$	171

Other comprehensive income	$	83		$	37		$	90		$	116		$	(243	)	$	83
Total comprehensive income (loss) attributable to Eaton ordinary shareholders	$	254		$	(176	)	$	457		$	432		$	(713	)	$	254

CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME FOR THE SIX MONTHS ENDED JUNE 30, 2015

	Eaton Corporation plc			Eaton Corporation			Guarantors			Other subsidiaries			Consolidating adjustments			Total
Net sales	$	—		$	3,508		$	3,401		$	6,364		$	(2,678	)	$	10,595

Cost of products sold	—			2,743			2,568			4,599			(2,642		)	7,268
Selling and administrative expense	4			745			348			719			—			1,816
Research and development expense	—			137			94			85			—			316
Interest expense (income) - net	—			112			11			(7		)	—			116
Other expense (income) - net	—			6			(8		)	(22		)	—			(24		)
Equity in earnings of subsidiaries, net of tax	(1,164		)	(273		)	(1,518		)	(258		)	3,213			—
Intercompany expense (income) - net	159			(308		)	752			(603		)	—			—
Income before income taxes	1,001			346			1,154			1,851			(3,249		)	1,103
Income tax expense (benefit)	—			19			(17		)	116			(17		)	101
Net income	1,001			327			1,171			1,735			(3,232		)	1,002
Less net income for noncontrolling interests	—			—			—			(2		)	1			(1		)
Net income attributable to Eaton ordinary shareholders	$	1,001		$	327		$	1,171		$	1,733		$	(3,231	)	$	1,001

Other comprehensive (loss) income	$	(404	)	$	62		$	(386	)	$	(464	)	$	788		$	(404	)
Total comprehensive income attributable to Eaton ordinary shareholders	$	597		$	389		$	785		$	1,269		$	(2,443	)	$	597

CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME FOR THE SIX MONTHS ENDED JUNE 30, 2014

	Eaton Corporation plc			Eaton Corporation			Guarantors			Other subsidiaries			Consolidating adjustments			Total
Net sales	$	—		$	3,417		$	3,420		$	6,645		$	(2,223	)	$	11,259

Cost of products sold	—			2,720			2,506			4,865			(2,208		)	7,883
Selling and administrative expense	—			731			393			822			—			1,946
Litigation settlements	—			644			—			—			—			644
Research and development expense	—			122			102			106			—			330
Interest expense (income) - net	—			114			13			(14		)	4			117
Other income- net	—			(45		)	(92		)	(34		)	—			(171		)
Equity in (earnings) loss of subsidiaries, net of tax	(700		)	(187		)	(747		)	259			1,375			—
Intercompany expense (income) - net	90			(117		)	278			(251		)	—			—
Income (loss) before income taxes	610			(565		)	967			892			(1,394		)	510
Income tax (benefit) expense	—			(269		)	71			101			(6		)	(103		)
Net income (loss)	610			(296		)	896			791			(1,388		)	613
Less net income for noncontrolling interests	—			—			—			(3		)	—			(3		)
Net income (loss) attributable to Eaton ordinary shareholders	$	610		$	(296	)	$	896		$	788		$	(1,388	)	$	610

Other comprehensive income	$	86		$	67		$	115		$	70		$	(252	)	$	86
Total comprehensive income (loss) attributable to Eaton ordinary shareholders	$	696		$	(229	)	$	1,011		$	858		$	(1,640	)	$	696

CONDENSED CONSOLIDATING BALANCE SHEETS JUNE 30, 2015

	Eaton Corporation plc		Eaton Corporation		Guarantors		Other subsidiaries		Consolidating adjustments			Total
Assets
Current assets
Cash	$	—	$	14	$	8	$	281	$	—		$	303
Short-term investments	—		—		1		126		—			127
Accounts receivable - net	—		549		1,075		2,216		—			3,840
Intercompany accounts receivable	2		816		3,751		3,063		(7,632		)	—
Inventory	—		356		691		1,479		(87		)	2,439
Deferred income taxes	—		348		128		77		—			553
Prepaid expenses and other current assets	—		108		43		212		19			382
Total current assets	2		2,191		5,697		7,454		(7,700		)	7,644

Property, plant and equipment - net	—		950		752		1,978		—			3,680

Other noncurrent assets
Goodwill	—		1,355		6,256		6,087		—			13,698
Other intangible assets	—		189		3,717		2,376		—			6,282
Deferred income taxes	—		873		5		162		(790		)	250
Investment in subsidiaries	28,861		12,461		58,835		9,831		(109,988		)	—
Intercompany loans receivable	—		7,656		1,430		42,492		(51,578		)	—
Other assets	—		559		132		334		—			1,025
Total assets	$	28,863	$	26,234	$	76,824	$	70,714	$	(170,056	)	$	32,579

Liabilities and shareholders’ equity
Current liabilities
Short-term debt	$	—	$	125	$	—	$	14	$	—		$	139
Current portion of long-term debt	—		601		241		—		—			842
Accounts payable	—		468		325		1,138		—			1,931
Intercompany accounts payable	84		4,023		2,429		1,096		(7,632		)	—
Accrued compensation	—		58		44		225		—			327
Other current liabilities	—		605		312		911		(11		)	1,817
Total current liabilities	84		5,880		3,351		3,384		(7,643		)	5,056

Noncurrent liabilities
Long-term debt	—		7,069		683		18		—			7,770
Pension liabilities	—		587		140		825		—			1,552
Other postretirement benefits liabilities	—		280		136		91		—			507
Deferred income taxes	—		14		1,105		547		(790		)	876
Intercompany loans payable	13,026		1,801		35,774		977		(51,578		)	—
Other noncurrent liabilities	—		424		172		419		—			1,015
Total noncurrent liabilities	13,026		10,175		38,010		2,877		(52,368		)	11,720

Shareholders’ equity
Eaton shareholders' equity	15,753		10,179		35,463		64,410		(110,052		)	15,753
Noncontrolling interests	—		—		—		43		7			50
Total equity	15,753		10,179		35,463		64,453		(110,045		)	15,803
Total liabilities and equity	$	28,863	$	26,234	$	76,824	$	70,714	$	(170,056	)	$	32,579

CONDENSED CONSOLIDATING BALANCE SHEETS DECEMBER 31, 2014

	Eaton Corporation plc		Eaton Corporation		Guarantors		Other subsidiaries		Consolidating adjustments			Total
Assets
Current assets
Cash	$	1	$	173	$	13	$	594	$	—		$	781
Short-term investments	—		—		1		244		—			245
Accounts receivable - net	—		500		955		2,212		—			3,667
Intercompany accounts receivable	2		759		3,820		4,101		(8,682		)	—
Inventory	—		397		637		1,445		(51		)	2,428
Deferred income taxes	—		368		132		93		—			593
Prepaid expenses and other current assets	—		96		39		247		4			386
Total current assets	3		2,293		5,597		8,936		(8,729		)	8,100

Property, plant and equipment - net	—		972		756		2,022		—			3,750

Other noncurrent assets
Goodwill	—		1,355		6,256		6,282		—			13,893
Other intangible assets	—		196		3,811		2,549		—			6,556
Deferred income taxes	—		889		10		137		(808		)	228
Investment in subsidiaries	26,612		12,179		58,687		9,145		(106,623		)	—
Intercompany loans receivable	—		7,542		2,249		40,635		(50,426		)	—
Other assets	—		533		141		328		—			1,002
Total assets	$	26,615	$	25,959	$	77,507	$	70,034	$	(166,586	)	$	33,529

Liabilities and shareholders’ equity
Current liabilities
Short-term debt	$	—	$	—	$	—	$	2	$	—		$	2
Current portion of long-term debt	—		702		304		2		—			1,008
Accounts payable	—		475		340		1,125		—			1,940
Intercompany accounts payable	117		4,125		3,449		991		(8,682		)	—
Accrued compensation	—		112		59		249		—			420
Other current liabilities	1		674		340		984		(14		)	1,985
Total current liabilities	118		6,088		4,492		3,353		(8,696		)	5,355

Noncurrent liabilities
Long-term debt	—		7,079		932		13		—			8,024
Pension liabilities	—		726		183		903		—			1,812
Other postretirement benefits liabilities	—		283		136		94		—			513
Deferred income taxes	—		—		1,160		549		(808		)	901
Intercompany loans payable	10,711		2,723		36,162		830		(50,426		)	—
Other noncurrent liabilities	—		457		183		445		—			1,085
Total noncurrent liabilities	10,711		11,268		38,756		2,834		(51,234		)	12,335

Shareholders’ equity
Eaton shareholders' equity	15,786		8,603		34,259		63,802		(106,664		)	15,786
Noncontrolling interests	—		—		—		45		8			53
Total equity	15,786		8,603		34,259		63,847		(106,656		)	15,839
Total liabilities and equity	$	26,615	$	25,959	$	77,507	$	70,034	$	(166,586	)	$	33,529

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS FOR THE SIX MONTHS ENDED JUNE 30, 2015

	Eaton Corporation plc			Eaton Corporation			Guarantors			Other subsidiaries			Consolidating adjustments			Total
Net cash (used in) provided by operating activities	$	(84	)	$	(272	)	$	95		$	917		$	—		$	656

Investing activities
Cash paid for acquisitions of businesses, net of cash acquired	—			—			—			(38		)	—			(38		)
Capital expenditures for property, plant and equipment	—			(47		)	(63		)	(136		)	—			(246		)
Sales of short-term investments - net	—			—			—			109			—			109
Investments in affiliates	(1,482		)	—			(1,176		)	(1,482		)	4,140			—
Loans to affiliates	—			(307		)	(39		)	(6,027		)	6,373			—
Repayments of loans from affiliates	—			306			11			4,720			(5,037		)	—
Proceeds from sale of business	—			—			—			1			—			1
Other - net	—			(31		)	28			(30		)	—			(33		)
Net cash used in investing activities	(1,482		)	(79		)	(1,239		)	(2,883		)	5,476			(207		)

Financing activities
Proceeds from borrowings	—			125			—			12			—			137
Payments on borrowings	—			(101		)	(301		)	(2		)	—			(404		)
Proceeds from borrowings from affiliates	2,242			3,775			314			42			(6,373		)	—
Payments on borrowings from affiliates	(39		)	(3,824		)	(1,160		)	(14		)	5,037			—
Capital contributions from affiliates	—			1,176			1,482			1,482			(4,140		)	—
Other intercompany financing activities	—			(959		)	804			155			—			—
Cash dividends paid	(514		)	—			—			—			—			(514		)
Exercise of employee stock options	46			—			—			—			—			46
Repurchase of shares	(170		)	—			—			—			—			(170		)
Other - net	—			—			—			(7		)	—			(7		)
Net cash provided by (used in) financing activities	1,565			192			1,139			1,668			(5,476		)	(912		)

Effect of currency on cash	—			—			—			(15		)	—			(15		)
Total decrease in cash	(1		)	(159		)	(5		)	(313		)	—			(478		)
Cash at the beginning of the period	1			173			13			594			—			781
Cash at the end of the period	$	—		$	14		$	8		$	281		$	—		$	303

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS FOR THE SIX MONTHS ENDED JUNE 30, 2014

	Eaton Corporation plc			Eaton Corporation			Guarantors			Other subsidiaries			Consolidating adjustments			Total
Net cash provided by (used in) operating activities	$	8		$	(229	)	$	7		$	859		$	—		$	645

Investing activities
Capital expenditures for property, plant and equipment	—			(51		)	(61		)	(124		)	—			(236		)
(Purchases) sales of short-term investments - net	—			—			(155		)	317			—			162
Loans to affiliates	—			(151		)	—			(3,191		)	3,342			—
Repayments of loans from affiliates	—			176			187			2,454			(2,817		)	—
Proceeds from sale of businesses	—			93			175			5			—			273
Other - net	—			(26		)	5			(30		)	—			(51		)
Net cash provided by (used in) investing activities	—			41			151			(569		)	525			148

Financing activities
Payments on borrowings	—			(551		)	(1		)	(24		)	—			(576		)
Proceeds from borrowings from affiliates	327			2,754			254			7			(3,342		)	—
Payments on borrowings from affiliates	(15		)	(2,125		)	(320		)	(357		)	2,817			—
Other intercompany financing activities	219			84			(81		)	(222		)	—			—
Cash dividends paid	(467		)	—			—			—			—			(467		)
Exercise of employee stock options	44			—			—			—			—			44
Repurchase of shares	(99		)	—			—			—			—			(99		)
Excess tax benefit from equity-based compensation	—			20			—			—			—			20
Net cash provided by (used in) financing activities	9			182			(148		)	(596		)	(525		)	(1,078		)

Effect of currency on cash	—			—			—			1			—			1
Total increase (decrease) in cash	17			(6		)	10			(305		)	—			(284		)
Cash at the beginning of the period	3			51			10			851			—			915
Cash at the end of the period	$	20		$	45		$	20		$	546		$	—		$	631