


CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2017
	Eaton Corporation plc			Eaton Corporation			Guarantors			Other subsidiaries			Consolidating adjustments			Total
Net sales	$	—		$	1,695		$	1,669		$	3,223		$	(1,376	)	$	5,211

Cost of products sold	—			1,322			1,225			2,294			(1,372		)	3,469
Selling and administrative expense	32			330			200			354			—			916
Research and development expense	—			53			54			40			—			147
Interest expense (income) - net	—			62			5			(7		)	—			60
Gain on Sale of Business	—			560			—			517			—			1,077
Other expense (income) - net	23			1			(31		)	12			—			5
Equity in loss (earnings) of subsidiaries, net of tax	(1,573		)	(237		)	(1,900		)	(706		)	4,416			—
Intercompany expense (income) - net	119			(33		)	335			(421		)	—			—
Income (loss) before income taxes	1,399			757			1,781			2,174			(4,420		)	1,691
Income tax expense (benefit)	—			120			18			154			—			292
Net income (loss)	1,399			637			1,763			2,020			(4,420		)	1,399
Less net loss (income) for noncontrolling interests	—			—			—			(1		)	1			—
Net income (loss) attributable to Eaton ordinary shareholders	$	1,399		$	637		$	1,763		$	2,019		$	(4,419	)	$	1,399

Other comprehensive income (loss)	$	199		$	(15	)	$	200		$	267		$	(452	)	$	199
Total comprehensive income (loss) attributable to Eaton ordinary shareholders	$	1,598		$	622		$	1,963		$	2,286		$	(4,871	)	$	1,598




CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2016
	Eaton Corporation plc			Eaton Corporation			Guarantors			Other subsidiaries			Consolidating adjustments			Total
Net sales	$	—		$	1,660		$	1,592		$	3,032		$	(1,297	)	$	4,987

Cost of products sold	—			1,329			1,168			2,168			(1,294		)	3,371
Selling and administrative expense	2			332			195			324			—			853
Research and development expense	—			59			44			43			—			146
Interest expense (income) - net	—			59			4			(3		)	(1		)	59
Other expense (income) - net	(1		)	2			6			(22		)	—			(15		)
Equity in loss (earnings) of subsidiaries, net of tax	(628		)	(173		)	(914		)	(228		)	1,943			—
Intercompany expense (income) - net	104			(34		)	333			(403		)	—			—
Income (loss) before income taxes	523			86			756			1,153			(1,945		)	573
Income tax expense (benefit)	—			(11		)	11			52			(1		)	51
Net income (loss)	523			97			745			1,101			(1,944		)	522
Less net loss (income) for noncontrolling interests	—			—			—			—			1			1
Net income (loss) attributable to Eaton ordinary shareholders	$	523		$	97		$	745		$	1,101		$	(1,943	)	$	523

Other comprehensive income (loss)	$	24		$	24		$	29		$	3		$	(56	)	$	24
Total comprehensive income (loss) attributable to Eaton ordinary shareholders	$	547		$	121		$	774		$	1,104		$	(1,999	)	$	547

CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2017

	Eaton Corporation plc			Eaton Corporation			Guarantors			Other subsidiaries			Consolidating adjustments			Total
Net sales	$	—		$	4,963		$	4,936		$	9,378		$	(4,086	)	$	15,191

Cost of products sold	—			3,948			3,638			6,723			(4,080		)	10,229
Selling and administrative expense	98			998			591			1,016			—			2,703
Research and development expense	—			164			154			122			—			440
Interest expense (income) - net	—			180			16			(15		)	—			181
Gain on Sale of Business	—			560			—			517			—			1,077
Other expense (income) - net	71			8			(69		)	(20		)	—			(10		)
Equity in loss (earnings) of subsidiaries, net of tax	(2,858		)	(612		)	(3,625		)	(931		)	8,026			—
Intercompany expense (income) - net	343			(106		)	1,007			(1,244		)	—			—
Income (loss) before income taxes	2,346			943			3,224			4,244			(8,032		)	2,725
Income tax expense (benefit)	—			120			37			222			(1		)	378
Net income (loss)	2,346			823			3,187			4,022			(8,031		)	2,347
Less net loss (income) for noncontrolling interests	—			—			—			(3		)	2			(1		)
Net income (loss) attributable to Eaton ordinary shareholders	$	2,346		$	823		$	3,187		$	4,019		$	(8,029	)	$	2,346

Other comprehensive income (loss)	$	785		$	35		$	792		$	998		$	(1,825	)	$	785
Total comprehensive income (loss) attributable to Eaton ordinary shareholders	$	3,131		$	858		$	3,979		$	5,017		$	(9,854	)	$	3,131

CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2016

	Eaton Corporation plc			Eaton Corporation			Guarantors			Other subsidiaries			Consolidating adjustments			Total
Net sales	$	—		$	4,842		$	4,815		$	8,962		$	(3,739	)	$	14,880

Cost of products sold	—			3,788			3,571			6,462			(3,740		)	10,081
Selling and administrative expense	6			1,048			589			999			—			2,642
Research and development expense	—			176			140			128			—			444
Interest expense (income) - net	—			169			13			(13		)	4			173
Other expense (income) - net	(1		)	3			10			(40		)	—			(28		)
Equity in loss (earnings) of subsidiaries, net of tax	(1,726		)	(495		)	(2,398		)	(457		)	5,076			—
Intercompany expense (income) - net	303			(104		)	901			(1,100		)	—			—
Income (loss) before income taxes	1,418			257			1,989			2,983			(5,079		)	1,568
Income tax expense (benefit)	—			9			24			119			(1		)	151
Net income (loss)	1,418			248			1,965			2,864			(5,078		)	1,417
Less net loss (income) for noncontrolling interests	—			—			—			(2		)	3			1
Net income (loss) attributable to Eaton ordinary shareholders	$	1,418		$	248		$	1,965		$	2,862		$	(5,075	)	$	1,418

Other comprehensive income (loss)	$	42		$	68		$	59		$	(7	)	$	(120	)	$	42
Total comprehensive income (loss) attributable to Eaton ordinary shareholders	$	1,460		$	316		$	2,024		$	2,855		$	(5,195	)	$	1,460

CONDENSED CONSOLIDATING BALANCE SHEETS SEPTEMBER 30, 2017

	Eaton Corporation plc		Eaton Corporation		Guarantors		Other subsidiaries		Consolidating adjustments			Total
Assets
Current assets
Cash	$	1	$	181	$	15	$	594	$	—		$	791
Short-term investments	—		—		—		843		—			843
Accounts receivable - net	—		386		1,404		2,172		—			3,962
Intercompany accounts receivable	1		1,136		3,616		3,802		(8,555		)	—
Inventory	—		330		683		1,529		(85		)	2,457
Prepaid expenses and other current assets	—		89		45		233		29			396
Total current assets	2		2,122		5,763		9,173		(8,611		)	8,449

Property, plant and equipment - net	—		835		687		1,964		—			3,486

Other noncurrent assets
Goodwill	—		1,303		6,293		5,949		—			13,545
Other intangible assets	—		159		3,305		1,890		—			5,354
Deferred income taxes	—		692		—		270		(698		)	264
Investment in subsidiaries	35,826		14,062		77,001		13,661		(140,550		)	—
Intercompany loans receivable	—		7,459		2,655		58,045		(68,159		)	—
Other assets	—		794		153		680		—			1,627
Total assets	$	35,828	$	27,426	$	95,857	$	91,632	$	(218,018	)	$	32,725

Liabilities and shareholders’ equity
Current liabilities
Short-term debt	$	—	$	—	$	—	$	5	$	—		$	5
Current portion of long-term debt	—		1,455		36		3		—			1,494
Accounts payable	—		382		456		1,201		—			2,039
Intercompany accounts payable	262		3,739		3,614		940		(8,555		)	—
Accrued compensation	—		111		57		266		—			434
Other current liabilities	1		636		283		1,009		(1		)	1,928
Total current liabilities	263		6,323		4,446		3,424		(8,556		)	5,900

Noncurrent liabilities
Long-term debt	—		6,295		969		9		—			7,273
Pension liabilities	—		331		76		921		—			1,328
Other postretirement benefits liabilities	—		195		98		73		—			366
Deferred income taxes	—		—		677		348		(698		)	327
Intercompany loans payable	18,972		2,013		45,719		1,455		(68,159		)	—
Other noncurrent liabilities	—		287		230		378		—			895
Total noncurrent liabilities	18,972		9,121		47,769		3,184		(68,857		)	10,189

Shareholders’ equity
Eaton shareholders' equity	16,593		11,982		43,642		84,985		(140,609		)	16,593
Noncontrolling interests	—		—		—		39		4			43
Total equity	16,593		11,982		43,642		85,024		(140,605		)	16,636
Total liabilities and equity	$	35,828	$	27,426	$	95,857	$	91,632	$	(218,018	)	$	32,725

CONDENSED CONSOLIDATING BALANCE SHEETS DECEMBER 31, 2016

	Eaton Corporation plc		Eaton Corporation		Guarantors		Other subsidiaries		Consolidating adjustments			Total
Assets
Current assets
Cash	$	1	$	92	$	4	$	446	$	—		$	543
Short-term investments	—		—		—		203		—			203
Accounts receivable - net	—		536		1,049		1,975		—			3,560
Intercompany accounts receivable	5		954		4,023		3,633		(8,615		)	—
Inventory	—		342		642		1,349		(79		)	2,254
Prepaid expenses and other current assets	—		77		42		237		25			381
Total current assets	6		2,001		5,760		7,843		(8,669		)	6,941

Property, plant and equipment - net	—		857		706		1,880		—			3,443

Other noncurrent assets
Goodwill	—		1,355		6,293		5,553		—			13,201
Other intangible assets	—		169		3,442		1,903		—			5,514
Deferred income taxes	—		904		—		228		(772		)	360
Investment in subsidiaries	32,795		13,743		72,938		12,577		(132,053		)	—
Intercompany loans receivable	—		7,605		2,061		56,598		(66,264		)	—
Other assets	—		491		134		335		—			960
Total assets	$	32,801	$	27,125	$	91,334	$	86,917	$	(207,758	)	$	30,419

Liabilities and shareholders’ equity
Current liabilities
Short-term debt	$	—	$	—	$	8	$	6	$	—		$	14
Current portion of long-term debt	—		1,250		296		6		—			1,552
Accounts payable	1		372		252		1,093		—			1,718
Intercompany accounts payable	281		3,870		3,115		1,349		(8,615		)	—
Accrued compensation	—		98		58		223		—			379
Other current liabilities	1		591		291		941		(2		)	1,822
Total current liabilities	283		6,181		4,020		3,618		(8,617		)	5,485

Noncurrent liabilities
Long-term debt	—		5,767		936		8		—			6,711
Pension liabilities	—		610		161		888		—			1,659
Other postretirement benefits liabilities	—		198		99		71		—			368
Deferred income taxes	—		—		732		361		(772		)	321
Intercompany loans payable	17,621		2,603		44,788		1,252		(66,264		)	—
Other noncurrent liabilities	—		327		211		396		—			934
Total noncurrent liabilities	17,621		9,505		46,927		2,976		(67,036		)	9,993

Shareholders’ equity
Eaton shareholders' equity	14,897		11,439		40,387		80,285		(132,111		)	14,897
Noncontrolling interests	—		—		—		38		6			44
Total equity	14,897		11,439		40,387		80,323		(132,105		)	14,941
Total liabilities and equity	$	32,801	$	27,125	$	91,334	$	86,917	$	(207,758	)	$	30,419

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2017

	Eaton Corporation plc			Eaton Corporation			Guarantors			Other subsidiaries			Consolidating adjustments			Total
Net cash provided by (used in) operating activities	$	528		$	(296	)	$	802		$	2,365		$	(1,612	)	$	1,787

Investing activities
Capital expenditures for property, plant and equipment	—			(63		)	(75		)	(213		)	—			(351		)
Cash received from sales (paid for acquisitions) of affiliates	—			—			(92		)	92			—			—
Purchases of short-term investments - net	—			—			—			(621		)	—			(621		)
Investments in affiliates	(90		)	(108		)	—			(90		)	288			—
Return of investments in affiliates	—			—			20			—			(20		)	—
Loans to affiliates	—			(29		)	—			(4,754		)	4,783			—
Repayments of loans from affiliates	—			303			46			3,816			(4,165		)	—
Proceeds from sale of business	—			330			—			270			—			600
Other - net	—			(36		)	2			(29		)	—			(63		)
Net cash provided by (used in) investing activities	(90		)	397			(99		)	(1,529		)	886			(435		)

Financing activities
Proceeds from borrowings	—			1,000			—			—			—			1,000
Payments on borrowings	—			(250		)	(297		)	(6		)	—			(553		)
Proceeds from borrowings from affiliates	1,917			1,873			965			28			(4,783		)	—
Payments on borrowings from affiliates	(822		)	(2,904		)	(352		)	(87		)	4,165			—
Capital contributions from affiliates	—			—			90			198			(288		)	—
Return of capital to affiliates	—			—			—			(20		)	20			—
Other intercompany financing activities	—			287			(290		)	3			—			—
Cash dividends paid	(803		)	—			—			—			—			(803		)
Cash dividends paid to affiliates	—			—			(803		)	(809		)	1,612			—
Exercise of employee stock options	59			—			—			—			—			59
Repurchase of shares	(789		)	—			—			—			—			(789		)
Employee taxes paid from shares withheld	—			(14		)	(4		)	(3		)	—			(21		)
Other - net	—			(4		)	(1		)	(3		)	—			(8		)
Net cash provided by (used in) financing activities	(438		)	(12		)	(692		)	(699		)	726			(1,115		)

Effect of currency on cash	—			—			—			11			—			11
Total increase (decrease) in cash	—			89			11			148			—			248
Cash at the beginning of the period	1			92			4			446			—			543
Cash at the end of the period	$	1		$	181		$	15		$	594		$	—		$	791

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2016

	Eaton Corporation plc			Eaton Corporation			Guarantors			Other subsidiaries			Consolidating adjustments			Total
Net cash provided by (used in) operating activities	$	(158	)	$	(17	)	$	(285	)	$	2,392		$	—		$	1,932

Investing activities
Capital expenditures for property, plant and equipment	—			(62		)	(75		)	(209		)	—			(346		)
Cash received from acquisitions of businesses, net of cash acquired	—			—			1			—			—			1
Sales (purchases) of short-term investments - net	—			—			2			(31		)	—			(29		)
Investments in affiliates	(1,250		)	—			(120		)	(1,370		)	2,740			—
Return of investments in affiliates	—			—			47			—			(47		)	—
Loans to affiliates	—			(287		)	(655		)	(6,457		)	7,399			—
Repayments of loans from affiliates	—			1,288			—			4,501			(5,789		)	—
Other - net	—			—			30			(27		)	—			3
Net cash provided by (used in) investing activities	(1,250		)	939			(770		)	(3,593		)	4,303			(371		)

Financing activities
Proceeds from borrowings	—			22			611			—			—			633
Payments on borrowings	—			(408		)	(240		)	(18		)	—			(666		)
Proceeds from borrowings from affiliates	3,333			2,815			1,059			192			(7,399		)	—
Payments on borrowings from affiliates	(637		)	(3,453		)	(1,658		)	(41		)	5,789			—
Capital contributions from affiliates	—			—			1,370			1,370			(2,740		)	—
Return of capital to affiliates	—			—			—			(47		)	47			—
Other intercompany financing activities	—			158			(81		)	(77		)	—			—
Cash dividends paid	(780		)	—			—			—			—			(780		)
Exercise of employee stock options	60			—			—			—			—			60
Repurchase of shares	(567		)	—			—			—			—			(567		)
Employee taxes paid from shares withheld	—			(12		)	(4		)	(2		)	—			(18		)
Other - net	—			—			(3		)	(2		)	—			(5		)
Net cash provided by (used in) financing activities	1,409			(878		)	1,054			1,375			(4,303		)	(1,343		)

Effect of currency on cash	—			—			—			8			—			8
Total increase (decrease) in cash	1			44			(1		)	182			—			226
Cash at the beginning of the period	—			26			7			235			—			268
Cash at the end of the period	$	1		$	70		$	6		$	417		$	—		$	494