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EATON CORPORATION plc
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(Exact name of registrant as specified in its charter)
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Ireland
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98-1059235
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(State or other jurisdiction of incorporation or organization)
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(IRS Employer Identification Number)
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Eaton House, 30 Pembroke Road, Dublin 4, Ireland
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D04 Y0C2
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(Address of principal executive offices)
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(Zip code)
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+353 1637 2900
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(Registrant's telephone number, including area code)
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Securities registered pursuant to Section 12(b) of the Act:
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Title of each class
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Name of each exchange on which registered
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Ordinary Shares ($0.01 par value)
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The New York Stock Exchange
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Large accelerated filer
þ
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Accelerated filer
o
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Non-accelerated filer
o
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Smaller reporting company
o
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(Do not check if a smaller reporting company)
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TABLE OF CONTENTS
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Item 16.
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Form 10-K Summary
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EX-12
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EX-21
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EX-23
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EX-24
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EX-31.1
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EX-31.2
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EX-32.1
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EX-32.2
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EX-101 INSTANCE DOCUMENT
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EX-101 SCHEMA DOCUMENT
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EX-101 CALCULATION LINKBASE DOCUMENT
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EX-101 LABELS LINKBASE DOCUMENT
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EX-101 PRESENTATION LINKBASE DOCUMENT
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EX-101 DEFINITION LINKBASE DOCUMENT
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Month
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Total number of shares purchased
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Average price paid per share
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Total number of shares purchased as part of publicly announced plans or programs
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Approximate dollar value of shares that may yet be purchased under the plans or programs (in millions)
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October
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—
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$
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—
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—
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$
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2,015
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November
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2,635,546
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$
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61.63
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2,635,546
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$
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1,853
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December
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—
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$
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—
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—
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$
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1,853
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Total
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2,635,546
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$
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—
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2,635,546
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Name
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Age
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Position (Date elected to position)
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Craig Arnold
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56
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Chairman of Eaton Corporation plc (June 1, 2016 - present)
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Chief Executive Officer of Eaton Corporation (June 1, 2016 - present)
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Director of Eaton Corporation plc (September 1, 2015 - present)
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President and Chief Operating Officer of Eaton Corporation
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(September 1, 2015 - May 31, 2016)
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Vice Chairman and Chief Operating Officer - Industrial Sector of Eaton Corporation
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(February 1, 2009 - August 31, 2015)
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Richard H. Fearon
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60
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Director of Eaton Corporation plc (September 1, 2015 - present)
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Vice Chairman and Chief Financial and Planning Officer of Eaton Corporation
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(April 24, 2002 - present)
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Revathi Advaithi
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49
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Chief Operating Officer - Electrical Sector of Eaton Corporation
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(September 1, 2015 - present)
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President of Electrical Sector, Americas of Eaton Corporation
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(April 1, 2012 - August 31, 2015)
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President, Electrical Sector, Asia Pacific of Eaton Corporation (July 1, 2009 - March 31, 2012)
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Uday Yadav
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53
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Chief Operating Officer - Industrial Sector of Eaton Corporation
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(September 1, 2015 - present)
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President of Aerospace Group of Eaton Corporation (August 1, 2012 - August 31, 2015)
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Executive Vice President, Eaton Business System (January 1, 2010 - July 31, 2012)
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Cynthia K. Brabander
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55
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Executive Vice President and Chief Human Resources Officer of Eaton Corporation
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(March 1, 2012 - present)
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Mark M. McGuire
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59
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Executive Vice President and General Counsel of Eaton Corporation
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(December 1, 2005 - present)
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Thomas E. Moran
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52
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Senior Vice President and Secretary of Eaton Corporation plc (November 27, 2012 - present)
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Senior Vice President and Secretary of Eaton Corporation (October 1, 2008 - January 1, 2013)
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Ken D. Semelsberger
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55
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Senior Vice President and Controller of Eaton Corporation (November 1, 2013 - present)
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Senior Vice President, Finance and Planning - Industrial Sector of Eaton Corporation
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(February 1, 2009 - October 31, 2013)
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(a)
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(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:
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(b)
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Exhibits
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EATON CORPORATION plc
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Registrant
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Date:
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February 22, 2017
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By:
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/s/ Richard H. Fearon
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Richard H. Fearon
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(On behalf of the registrant and as Principal Financial Officer)
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*By
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/s/ Richard H. Fearon
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Richard H. Fearon, Attorney-in-Fact for the officers
and directors signing in the capacities indicated
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/s/ Craig Arnold
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/s/ Richard H. Fearon
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/s/ Ken D. Semelsberger
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Principal Executive Officer
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Principal Financial Officer
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Principal Accounting Officer
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February 22, 2017
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/s/ Craig Arnold
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/s/ Richard H. Fearon
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/s/ Ken D. Semelsberger
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Principal Executive Officer
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Principal Financial Officer
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Principal Accounting Officer
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February 22, 2017
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Year ended December 31
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(In millions except for per share data)
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2016
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2015
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2014
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Net sales
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$
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19,747
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$
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20,855
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$
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22,552
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Cost of products sold
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13,400
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14,292
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15,646
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Selling and administrative expense
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3,505
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3,596
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3,810
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Litigation settlements
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—
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—
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644
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Research and development expense
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589
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625
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647
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Interest expense - net
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233
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232
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227
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Other income - net
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(107
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(35
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(183
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Income before income taxes
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2,127
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2,145
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1,761
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Income tax expense (benefit)
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202
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164
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(42
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)
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Net income
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1,925
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1,981
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1,803
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Less net income for noncontrolling interests
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(3
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(2
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(10
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Net income attributable to Eaton ordinary shareholders
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$
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1,922
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$
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1,979
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$
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1,793
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Net income per share attributable to Eaton ordinary shareholders
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Diluted
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$
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4.21
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$
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4.23
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$
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3.76
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Basic
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4.22
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4.25
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3.78
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Weighted-average number of ordinary shares outstanding
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Diluted
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456.5
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467.1
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476.8
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Basic
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455.0
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465.5
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474.1
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Cash dividends declared per ordinary share
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$
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2.28
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$
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2.20
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$
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1.96
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Year ended December 31
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(In millions)
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2016
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2015
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2014
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||||||
Net income
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$
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1,925
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$
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1,981
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$
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1,803
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Less net income for noncontrolling interests
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(3
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(2
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(10
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Net income attributable to Eaton ordinary shareholders
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1,922
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1,979
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1,793
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Other comprehensive loss, net of tax
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Currency translation and related hedging instruments
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(570
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(1,078
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(1,019
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)
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Pensions and other postretirement benefits
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(6
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111
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(315
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)
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Cash flow hedges
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(9
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3
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(5
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Other comprehensive loss attributable to Eaton
ordinary shareholders
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(585
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)
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(964
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)
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(1,339
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)
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Total comprehensive income attributable to Eaton ordinary shareholders
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$
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1,337
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$
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1,015
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$
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454
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December 31
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(In millions)
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2016
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2015
|
||||
Assets
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Current assets
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Cash
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$
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543
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$
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268
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Short-term investments
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203
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177
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Accounts receivable - net
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3,560
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3,479
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Inventory
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2,254
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2,323
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Prepaid expenses and other current assets
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381
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369
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Total current assets
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6,941
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6,616
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Property, plant and equipment
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Land and buildings
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2,369
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2,383
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Machinery and equipment
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5,670
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5,501
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Gross property, plant and equipment
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8,039
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7,884
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Accumulated depreciation
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(4,596
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)
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(4,319
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)
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Net property, plant and equipment
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3,443
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3,565
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Other noncurrent assets
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Goodwill
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13,201
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13,479
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Other intangible assets
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5,514
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6,014
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Deferred income taxes
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360
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362
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Other assets
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960
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960
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Total assets
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$
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30,419
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$
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30,996
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Liabilities and shareholders’ equity
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Current liabilities
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Short-term debt
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$
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14
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$
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426
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Current portion of long-term debt
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1,552
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242
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Accounts payable
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1,718
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1,758
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Accrued compensation
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379
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366
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Other current liabilities
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1,822
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1,833
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Total current liabilities
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5,485
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4,625
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Noncurrent liabilities
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Long-term debt
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6,711
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7,746
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Pension liabilities
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1,659
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1,586
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Other postretirement benefits liabilities
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368
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440
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Deferred income taxes
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321
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390
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Other noncurrent liabilities
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934
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978
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Total noncurrent liabilities
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9,993
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11,140
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Shareholders’ equity
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|
||||
Ordinary shares (449.4 million outstanding in 2016 and 458.8 million in 2015)
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5
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5
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Capital in excess of par value
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11,845
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11,701
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Retained earnings
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7,498
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7,346
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Accumulated other comprehensive loss
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(4,448
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)
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(3,863
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)
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Shares held in trust
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(3
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)
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(3
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)
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Total Eaton shareholders’ equity
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14,897
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|
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15,186
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Noncontrolling interests
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44
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45
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Total equity
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14,941
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|
15,231
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Total liabilities and equity
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$
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30,419
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$
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30,996
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Year ended December 31
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||||||||||
(In millions)
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2016
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2015
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|
2014
|
||||||
Operating activities
|
|
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|
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Net income
|
$
|
1,925
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$
|
1,981
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$
|
1,803
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Adjustments to reconcile to net cash provided by operating activities
|
|
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|
||||||
Depreciation and amortization
|
929
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|
|
925
|
|
|
983
|
|
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Deferred income taxes
|
(80
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)
|
|
(100
|
)
|
|
(382
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)
|
|||
Pension and other postretirement benefits expense
|
235
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|
|
323
|
|
|
293
|
|
|||
Contributions to pension plans
|
(262
|
)
|
|
(330
|
)
|
|
(362
|
)
|
|||
Contributions to other postretirement benefits plans
|
(30
|
)
|
|
(31
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)
|
|
(40
|
)
|
|||
Excess tax benefit from equity-based compensation
|
(1
|
)
|
|
(1
|
)
|
|
(20
|
)
|
|||
Gain on sale of businesses
|
—
|
|
|
—
|
|
|
(68
|
)
|
|||
Changes in working capital
|
|
|
|
|
|
|
|
|
|||
Accounts receivable - net
|
(170
|
)
|
|
5
|
|
|
(205
|
)
|
|||
Inventory
|
25
|
|
|
(20
|
)
|
|
(152
|
)
|
|||
Accounts payable
|
—
|
|
|
(120
|
)
|
|
49
|
|
|||
Accrued compensation
|
20
|
|
|
(28
|
)
|
|
(32
|
)
|
|||
Accrued income and other taxes
|
30
|
|
|
(9
|
)
|
|
(73
|
)
|
|||
Other current assets
|
(21
|
)
|
|
7
|
|
|
73
|
|
|||
Other current liabilities
|
(62
|
)
|
|
(76
|
)
|
|
8
|
|
|||
Other - net
|
14
|
|
|
(155
|
)
|
|
3
|
|
|||
Net cash provided by operating activities
|
2,552
|
|
|
2,371
|
|
|
1,878
|
|
|||
|
|
|
|
|
|
||||||
Investing activities
|
|
|
|
|
|
||||||
Capital expenditures for property, plant and equipment
|
(497
|
)
|
|
(506
|
)
|
|
(632
|
)
|
|||
Cash received from (paid for) acquisitions of businesses, net of cash acquired
|
1
|
|
|
(72
|
)
|
|
2
|
|
|||
Sales (purchases) of short-term investments - net
|
(40
|
)
|
|
37
|
|
|
522
|
|
|||
Proceeds from sales of businesses
|
—
|
|
|
1
|
|
|
282
|
|
|||
Other - net
|
7
|
|
|
(35
|
)
|
|
(31
|
)
|
|||
Net cash (used in) provided by investing activities
|
(529
|
)
|
|
(575
|
)
|
|
143
|
|
|||
|
|
|
|
|
|
||||||
Financing activities
|
|
|
|
|
|
||||||
Proceeds from borrowings
|
631
|
|
|
425
|
|
|
—
|
|
|||
Payments on borrowings
|
(653
|
)
|
|
(1,027
|
)
|
|
(582
|
)
|
|||
Cash dividends paid
|
(1,037
|
)
|
|
(1,026
|
)
|
|
(929
|
)
|
|||
Exercise of employee stock options
|
74
|
|
|
52
|
|
|
54
|
|
|||
Repurchase of shares
|
(730
|
)
|
|
(682
|
)
|
|
(650
|
)
|
|||
Excess tax benefit from equity-based compensation
|
1
|
|
|
1
|
|
|
20
|
|
|||
Other - net
|
(6
|
)
|
|
(10
|
)
|
|
(43
|
)
|
|||
Net cash used in financing activities
|
(1,720
|
)
|
|
(2,267
|
)
|
|
(2,130
|
)
|
|||
|
|
|
|
|
|
||||||
Effect of currency on cash
|
(28
|
)
|
|
(42
|
)
|
|
(25
|
)
|
|||
Total increase (decrease) in cash
|
275
|
|
|
(513
|
)
|
|
(134
|
)
|
|||
Cash at the beginning of the period
|
268
|
|
|
781
|
|
|
915
|
|
|||
Cash at the end of the period
|
$
|
543
|
|
|
$
|
268
|
|
|
$
|
781
|
|
|
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, 2014
|
475.1
|
|
|
$
|
5
|
|
|
$
|
11,483
|
|
|
$
|
6,866
|
|
|
$
|
(1,560
|
)
|
|
$
|
(3
|
)
|
|
$
|
16,791
|
|
|
$
|
72
|
|
|
$
|
16,863
|
|
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
1,793
|
|
|
—
|
|
|
—
|
|
|
1,793
|
|
|
10
|
|
|
1,803
|
|
||||||||
Other comprehensive loss, net of
tax
|
|
|
|
|
|
|
|
|
(1,339
|
)
|
|
|
|
(1,339
|
)
|
|
—
|
|
|
(1,339
|
)
|
|||||||||||||
Cash dividends paid
|
—
|
|
|
—
|
|
|
—
|
|
|
(929
|
)
|
|
—
|
|
|
—
|
|
|
(929
|
)
|
|
(5
|
)
|
|
(934
|
)
|
||||||||
Issuance of shares under equity-based compensation plans - net (net of income tax benefit of $20)
|
2.4
|
|
|
—
|
|
|
136
|
|
|
(2
|
)
|
|
—
|
|
|
—
|
|
|
134
|
|
|
—
|
|
|
134
|
|
||||||||
Purchase of additional noncontrolling interest of consolidated subsidiaries
|
—
|
|
|
—
|
|
|
(14
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(14
|
)
|
|
(24
|
)
|
|
(38
|
)
|
||||||||
Repurchase of shares
|
(9.6
|
)
|
|
—
|
|
|
—
|
|
|
(650
|
)
|
|
—
|
|
|
—
|
|
|
(650
|
)
|
|
—
|
|
|
(650
|
)
|
||||||||
Balance at December 31, 2014
|
467.9
|
|
|
5
|
|
|
11,605
|
|
|
7,078
|
|
|
(2,899
|
)
|
|
(3
|
)
|
|
15,786
|
|
|
53
|
|
|
15,839
|
|
||||||||
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
1,979
|
|
|
—
|
|
|
—
|
|
|
1,979
|
|
|
2
|
|
|
1,981
|
|
||||||||
Other comprehensive loss, net of tax
|
|
|
|
|
|
|
|
|
(964
|
)
|
|
|
|
(964
|
)
|
|
—
|
|
|
(964
|
)
|
|||||||||||||
Cash dividends paid
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,026
|
)
|
|
—
|
|
|
—
|
|
|
(1,026
|
)
|
|
(9
|
)
|
|
(1,035
|
)
|
||||||||
Issuance of shares under equity-based compensation plans - net (net of income tax benefit of $1)
|
2.2
|
|
|
—
|
|
|
99
|
|
|
(3
|
)
|
|
—
|
|
|
—
|
|
|
96
|
|
|
—
|
|
|
96
|
|
||||||||
Changes in noncontrolling interest of consolidated subsidiaries - net
|
—
|
|
|
—
|
|
|
(3
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3
|
)
|
|
(1
|
)
|
|
(4
|
)
|
||||||||
Repurchase of shares
|
(11.3
|
)
|
|
—
|
|
|
—
|
|
|
(682
|
)
|
|
—
|
|
|
—
|
|
|
(682
|
)
|
|
—
|
|
|
(682
|
)
|
||||||||
Balance at December 31, 2015
|
458.8
|
|
|
5
|
|
|
11,701
|
|
|
7,346
|
|
|
(3,863
|
)
|
|
(3
|
)
|
|
15,186
|
|
|
45
|
|
|
15,231
|
|
||||||||
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
1,922
|
|
|
—
|
|
|
—
|
|
|
1,922
|
|
|
3
|
|
|
1,925
|
|
||||||||
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
|
|
|
$
|
7,498
|
|
|
$
|
(4,448
|
)
|
|
$
|
(3
|
)
|
|
$
|
14,897
|
|
|
$
|
44
|
|
|
$
|
14,941
|
|
Note 1.
|
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
|
Note 2.
|
ACQUISITIONS AND SALES OF BUSINESSES
|
Note 3.
|
ACQUISITION INTEGRATION CHARGES
|
|
2016
|
|
2015
|
|
2014
|
||||||
Electrical Products
|
$
|
3
|
|
|
$
|
25
|
|
|
$
|
66
|
|
Electrical Systems and Services
|
1
|
|
|
15
|
|
|
51
|
|
|||
Hydraulics
|
—
|
|
|
2
|
|
|
12
|
|
|||
Total business segments
|
4
|
|
|
42
|
|
|
129
|
|
|||
Corporate
|
—
|
|
|
5
|
|
|
25
|
|
|||
Total acquisition integration charges before income taxes
|
4
|
|
|
47
|
|
|
154
|
|
|||
Income taxes
|
1
|
|
|
16
|
|
|
52
|
|
|||
Total after income taxes
|
$
|
3
|
|
|
$
|
31
|
|
|
$
|
102
|
|
Per ordinary share - diluted
|
$
|
0.01
|
|
|
$
|
0.07
|
|
|
$
|
0.21
|
|
Note 4.
|
RESTRUCTURING CHARGES
|
|
2016
|
|
2015
|
||||
Workforce reductions
|
$
|
177
|
|
|
$
|
112
|
|
Plant closings and other
|
34
|
|
|
17
|
|
||
Total
|
$
|
211
|
|
|
$
|
129
|
|
|
2016
|
|
2015
|
||||
Electrical Products
|
$
|
44
|
|
|
$
|
12
|
|
Electrical Systems & Services
|
49
|
|
|
29
|
|
||
Hydraulics
|
67
|
|
|
31
|
|
||
Aerospace
|
4
|
|
|
5
|
|
||
Vehicle
|
35
|
|
|
34
|
|
||
Corporate
|
12
|
|
|
18
|
|
||
Total
|
$
|
211
|
|
|
$
|
129
|
|
|
Workforce reductions
|
|
Plant closing and other
|
|
Total
|
||||||
Balance at December 31, 2014
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Liability recognized
|
112
|
|
|
17
|
|
|
129
|
|
|||
Payments
|
(59
|
)
|
|
(3
|
)
|
|
(62
|
)
|
|||
Other adjustments
|
1
|
|
|
(14
|
)
|
|
(13
|
)
|
|||
Balance at December 31, 2015
|
54
|
|
|
—
|
|
|
54
|
|
|||
Liability recognized
|
177
|
|
|
34
|
|
|
211
|
|
|||
Payments
|
(116
|
)
|
|
(13
|
)
|
|
(129
|
)
|
|||
Other adjustments
|
(2
|
)
|
|
(20
|
)
|
|
(22
|
)
|
|||
Balance at December 31, 2016
|
$
|
113
|
|
|
$
|
1
|
|
|
$
|
114
|
|
Note 5.
|
GOODWILL AND OTHER INTANGIBLE ASSETS
|
|
Electrical
Products
|
|
Electrical
Systems
and Services
|
|
Hydraulics
|
|
Aerospace
|
|
Vehicle
|
|
Total
|
||||||||||||
December 31, 2014
|
$
|
6,940
|
|
|
$
|
4,314
|
|
|
$
|
1,327
|
|
|
$
|
962
|
|
|
$
|
350
|
|
|
$
|
13,893
|
|
Additions
|
31
|
|
|
20
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
51
|
|
||||||
Reclassifications
|
(106
|
)
|
|
106
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Translation
|
(223
|
)
|
|
(161
|
)
|
|
(68
|
)
|
|
(6
|
)
|
|
(7
|
)
|
|
(465
|
)
|
||||||
December 31, 2015
|
6,642
|
|
|
4,279
|
|
|
1,259
|
|
|
956
|
|
|
343
|
|
|
13,479
|
|
||||||
Translation
|
(145
|
)
|
|
(76
|
)
|
|
(38
|
)
|
|
(18
|
)
|
|
(1
|
)
|
|
(278
|
)
|
||||||
December 31, 2016
|
$
|
6,497
|
|
|
$
|
4,203
|
|
|
$
|
1,221
|
|
|
$
|
938
|
|
|
$
|
342
|
|
|
$
|
13,201
|
|
|
2016
|
|
2015
|
||||||||||||
|
Historical
cost
|
|
Accumulated
amortization
|
|
Historical
cost
|
|
Accumulated
amortization
|
||||||||
Intangible assets not subject to amortization
|
|
|
|
|
|
|
|
||||||||
Trademarks
|
$
|
1,637
|
|
|
|
|
$
|
1,661
|
|
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Intangible assets subject to amortization
|
|
|
|
|
|
|
|
||||||||
Customer relationships
|
$
|
3,456
|
|
|
$
|
1,199
|
|
|
$
|
3,544
|
|
|
$
|
1,010
|
|
Patents and technology
|
1,342
|
|
|
519
|
|
|
1,447
|
|
|
511
|
|
||||
Trademarks
|
1,104
|
|
|
378
|
|
|
1,113
|
|
|
311
|
|
||||
Other
|
97
|
|
|
26
|
|
|
103
|
|
|
22
|
|
||||
Total intangible assets subject to amortization
|
$
|
5,999
|
|
|
$
|
2,122
|
|
|
$
|
6,207
|
|
|
$
|
1,854
|
|
2016
|
$
|
392
|
|
2017
|
375
|
|
|
2018
|
355
|
|
|
2019
|
348
|
|
|
2020
|
343
|
|
|
2021
|
334
|
|
Note 6.
|
DEBT
|
|
2016
|
|
2015
|
||||
2.375% debentures due 2016
|
$
|
—
|
|
|
$
|
240
|
|
5.30% notes due 2017 ($150 converted to floating rate by interest rate swap)
|
250
|
|
|
250
|
|
||
6.10% debentures due 2017
|
289
|
|
|
289
|
|
||
1.50% senior notes due 2017 ($750 converted to floating rate by interest rate swap)
|
1,000
|
|
|
1,000
|
|
||
5.60% notes due 2018 ($415 converted to floating rate by interest rate swap)
|
450
|
|
|
450
|
|
||
4.215% Japanese yen notes due 2018
|
86
|
|
|
83
|
|
||
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
|
|
|
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
|
580
|
|
|
—
|
|
||
6.50% debentures due 2025
|
145
|
|
|
145
|
|
||
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
|
|
||
5.25% to 8.875% notes (maturities ranging from 2018 to 2035, including $50 converted to
floating rate by interest rate swap)
|
239
|
|
|
239
|
|
||
Other
|
109
|
|
|
177
|
|
||
Total long-term debt
|
8,263
|
|
|
7,988
|
|
||
Less current portion of long-term debt
|
(1,552
|
)
|
|
(242
|
)
|
||
Long-term debt less current portion
|
$
|
6,711
|
|
|
$
|
7,746
|
|
2016
|
$
|
266
|
|
2015
|
271
|
|
|
2014
|
296
|
|
Note 7.
|
RETIREMENT BENEFITS PLANS
|
|
United States
pension liabilities
|
|
Non-United States
pension liabilities
|
|
Other postretirement
liabilities
|
||||||||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||||||
Funded status
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Fair value of plan assets
|
$
|
2,969
|
|
|
$
|
2,934
|
|
|
$
|
1,478
|
|
|
$
|
1,472
|
|
|
$
|
74
|
|
|
$
|
93
|
|
Benefit obligations
|
(3,771
|
)
|
|
(3,829
|
)
|
|
(2,314
|
)
|
|
(2,175
|
)
|
|
(473
|
)
|
|
(575
|
)
|
||||||
Funded status
|
$
|
(802
|
)
|
|
$
|
(895
|
)
|
|
$
|
(836
|
)
|
|
$
|
(703
|
)
|
|
$
|
(399
|
)
|
|
$
|
(482
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Amounts recognized in the Consolidated
Balance Sheets
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Non-current assets
|
$
|
34
|
|
|
$
|
11
|
|
|
$
|
33
|
|
|
$
|
57
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Current liabilities
|
(24
|
)
|
|
(57
|
)
|
|
(22
|
)
|
|
(23
|
)
|
|
(31
|
)
|
|
(42
|
)
|
||||||
Non-current liabilities
|
(812
|
)
|
|
(849
|
)
|
|
(847
|
)
|
|
(737
|
)
|
|
(368
|
)
|
|
(440
|
)
|
||||||
Total
|
$
|
(802
|
)
|
|
$
|
(895
|
)
|
|
$
|
(836
|
)
|
|
$
|
(703
|
)
|
|
$
|
(399
|
)
|
|
$
|
(482
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Amounts recognized in Accumulated other
comprehensive loss (pretax)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net actuarial loss
|
$
|
1,232
|
|
|
$
|
1,322
|
|
|
$
|
771
|
|
|
$
|
644
|
|
|
$
|
21
|
|
|
$
|
95
|
|
Prior service cost (credit)
|
3
|
|
|
5
|
|
|
8
|
|
|
9
|
|
|
(60
|
)
|
|
(74
|
)
|
||||||
Total
|
$
|
1,235
|
|
|
$
|
1,327
|
|
|
$
|
779
|
|
|
$
|
653
|
|
|
$
|
(39
|
)
|
|
$
|
21
|
|
|
United States
pension liabilities
|
|
Non-United States
pension liabilities
|
|
Other postretirement
liabilities
|
||||||||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||||||
Balance at January 1
|
$
|
3,829
|
|
|
$
|
4,047
|
|
|
$
|
2,175
|
|
|
$
|
2,337
|
|
|
$
|
575
|
|
|
$
|
676
|
|
Service cost
|
111
|
|
|
123
|
|
|
63
|
|
|
71
|
|
|
4
|
|
|
6
|
|
||||||
Interest cost
|
125
|
|
|
156
|
|
|
62
|
|
|
72
|
|
|
17
|
|
|
24
|
|
||||||
Actuarial (gain) loss
|
52
|
|
|
(179
|
)
|
|
355
|
|
|
(23
|
)
|
|
(72
|
)
|
|
(66
|
)
|
||||||
Gross benefits paid
|
(346
|
)
|
|
(318
|
)
|
|
(94
|
)
|
|
(100
|
)
|
|
(79
|
)
|
|
(86
|
)
|
||||||
Currency translation
|
—
|
|
|
—
|
|
|
(245
|
)
|
|
(182
|
)
|
|
1
|
|
|
(8
|
)
|
||||||
Plan amendments
|
—
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
||||||
Other
|
—
|
|
|
—
|
|
|
(4
|
)
|
|
—
|
|
|
27
|
|
|
30
|
|
||||||
Balance at December 31
|
$
|
3,771
|
|
|
$
|
3,829
|
|
|
$
|
2,314
|
|
|
$
|
2,175
|
|
|
$
|
473
|
|
|
$
|
575
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Accumulated benefit obligation
|
$
|
3,620
|
|
|
$
|
3,672
|
|
|
$
|
2,189
|
|
|
$
|
2,049
|
|
|
|
|
|
|
United States
pension liabilities
|
|
Non-United States
pension liabilities
|
|
Other postretirement
liabilities
|
||||||||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||||||
Balance at January 1
|
$
|
2,934
|
|
|
$
|
3,086
|
|
|
$
|
1,472
|
|
|
$
|
1,535
|
|
|
$
|
93
|
|
|
$
|
116
|
|
Actual return on plan assets
|
221
|
|
|
(55
|
)
|
|
212
|
|
|
29
|
|
|
3
|
|
|
1
|
|
||||||
Employer contributions
|
160
|
|
|
221
|
|
|
102
|
|
|
109
|
|
|
30
|
|
|
31
|
|
||||||
Gross benefits paid
|
(346
|
)
|
|
(318
|
)
|
|
(94
|
)
|
|
(100
|
)
|
|
(79
|
)
|
|
(86
|
)
|
||||||
Currency translation
|
—
|
|
|
—
|
|
|
(211
|
)
|
|
(101
|
)
|
|
—
|
|
|
—
|
|
||||||
Other
|
—
|
|
|
—
|
|
|
(3
|
)
|
|
—
|
|
|
27
|
|
|
31
|
|
||||||
Balance at December 31
|
$
|
2,969
|
|
|
$
|
2,934
|
|
|
$
|
1,478
|
|
|
$
|
1,472
|
|
|
$
|
74
|
|
|
$
|
93
|
|
|
United States
pension liabilities
|
|
Non-United States
pension liabilities
|
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Projected benefit obligation
|
$
|
3,342
|
|
|
$
|
3,376
|
|
|
$
|
1,902
|
|
|
$
|
1,387
|
|
Accumulated benefit obligation
|
3,190
|
|
|
3,219
|
|
|
1,824
|
|
|
1,328
|
|
||||
Fair value of plan assets
|
2,505
|
|
|
2,470
|
|
|
1,066
|
|
|
650
|
|
|
United States
pension liabilities
|
|
Non-United States
pension liabilities
|
|
Other postretirement
liabilities
|
||||||||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||||||
Balance at January 1
|
$
|
1,327
|
|
|
$
|
1,382
|
|
|
$
|
653
|
|
|
$
|
706
|
|
|
$
|
21
|
|
|
$
|
90
|
|
Prior service cost arising during the year
|
—
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
||||||
Net loss (gain) arising during the year
|
81
|
|
|
138
|
|
|
235
|
|
|
47
|
|
|
(69
|
)
|
|
(62
|
)
|
||||||
Currency translation
|
—
|
|
|
—
|
|
|
(75
|
)
|
|
(58
|
)
|
|
1
|
|
|
(4
|
)
|
||||||
Less amounts included in expense during the year
|
(173
|
)
|
|
(193
|
)
|
|
(36
|
)
|
|
(42
|
)
|
|
8
|
|
|
(2
|
)
|
||||||
Net change for the year
|
(92
|
)
|
|
(55
|
)
|
|
126
|
|
|
(53
|
)
|
|
(60
|
)
|
|
(69
|
)
|
||||||
Balance at December 31
|
$
|
1,235
|
|
|
$
|
1,327
|
|
|
$
|
779
|
|
|
$
|
653
|
|
|
$
|
(39
|
)
|
|
$
|
21
|
|
|
United States
pension benefit expense
|
|
Non-United States
pension benefit expense
|
|
Other postretirement
benefits expense
|
||||||||||||||||||||||||||||||
|
2016
|
|
2015
|
|
2014
|
|
2016
|
|
2015
|
|
2014
|
|
2016
|
|
2015
|
|
2014
|
||||||||||||||||||
Service cost
|
$
|
111
|
|
|
$
|
123
|
|
|
$
|
117
|
|
|
$
|
63
|
|
|
$
|
71
|
|
|
$
|
66
|
|
|
$
|
4
|
|
|
$
|
6
|
|
|
$
|
13
|
|
Interest cost
|
125
|
|
|
156
|
|
|
162
|
|
|
62
|
|
|
72
|
|
|
85
|
|
|
17
|
|
|
24
|
|
|
32
|
|
|||||||||
Expected return on plan assets
|
(250
|
)
|
|
(262
|
)
|
|
(246
|
)
|
|
(92
|
)
|
|
(99
|
)
|
|
(98
|
)
|
|
(6
|
)
|
|
(5
|
)
|
|
(6
|
)
|
|||||||||
Amortization
|
92
|
|
|
119
|
|
|
93
|
|
|
33
|
|
|
40
|
|
|
27
|
|
|
(9
|
)
|
|
2
|
|
|
6
|
|
|||||||||
|
78
|
|
|
136
|
|
|
126
|
|
|
66
|
|
|
84
|
|
|
80
|
|
|
6
|
|
|
27
|
|
|
45
|
|
|||||||||
Settlements, curtailments
and other
|
81
|
|
|
74
|
|
|
71
|
|
|
3
|
|
|
2
|
|
|
2
|
|
|
1
|
|
|
—
|
|
|
(31
|
)
|
|||||||||
Total expense
|
$
|
159
|
|
|
$
|
210
|
|
|
$
|
197
|
|
|
$
|
69
|
|
|
$
|
86
|
|
|
$
|
82
|
|
|
$
|
7
|
|
|
$
|
27
|
|
|
$
|
14
|
|
|
United States
pension liabilities
|
|
Non-United States
pension liabilities
|
|
Other postretirement
liabilities
|
||||||
Actuarial loss
|
$
|
142
|
|
|
$
|
54
|
|
|
$
|
2
|
|
Prior service cost (credit)
|
1
|
|
|
1
|
|
|
(14
|
)
|
|||
Total
|
$
|
143
|
|
|
$
|
55
|
|
|
$
|
(12
|
)
|
|
United States
pension plans
|
|
Non-United States
pension plans
|
||||||||||||||
|
2016
|
|
2015
|
|
2014
|
|
2016
|
|
2015
|
|
2014
|
||||||
Assumptions used to determine benefit obligation at year-end
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Discount rate
|
4.12
|
%
|
|
4.22
|
%
|
|
3.97
|
%
|
|
2.63
|
%
|
|
3.46
|
%
|
|
3.33
|
%
|
Rate of compensation increase
|
3.15
|
%
|
|
3.18
|
%
|
|
3.16
|
%
|
|
3.13
|
%
|
|
3.12
|
%
|
|
3.13
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Assumptions used to determine expense
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Discount rate used to determine benefit obligation
|
4.22
|
%
|
|
3.97
|
%
|
|
4.67
|
%
|
|
3.46
|
%
|
|
3.33
|
%
|
|
4.20
|
%
|
Discount rate used to determine service cost
|
4.35
|
%
|
|
3.97
|
%
|
|
4.67
|
%
|
|
4.13
|
%
|
|
3.33
|
%
|
|
4.20
|
%
|
Discount rate used to determine interest cost
|
3.42
|
%
|
|
3.97
|
%
|
|
4.67
|
%
|
|
3.07
|
%
|
|
3.33
|
%
|
|
4.20
|
%
|
Expected long-term return on plan assets
|
8.50
|
%
|
|
8.50
|
%
|
|
8.40
|
%
|
|
6.62
|
%
|
|
6.92
|
%
|
|
7.00
|
%
|
Rate of compensation increase
|
3.18
|
%
|
|
3.16
|
%
|
|
3.16
|
%
|
|
3.12
|
%
|
|
3.13
|
%
|
|
3.12
|
%
|
|
Other postretirement
benefits plans
|
|||||||
|
2016
|
|
2015
|
|
2014
|
|||
Assumptions used to determine benefit obligation at year-end
|
|
|
|
|
|
|||
Discount rate
|
3.96
|
%
|
|
4.04
|
%
|
|
3.79
|
%
|
Health care cost trend rate assumed for next year
|
7.35
|
%
|
|
7.10
|
%
|
|
6.31
|
%
|
Ultimate health care cost trend rate
|
4.75
|
%
|
|
4.75
|
%
|
|
4.77
|
%
|
Year ultimate health care cost trend rate is achieved
|
2026
|
|
|
2025
|
|
|
2024
|
|
|
|
|
|
|
|
|||
Assumptions used to determine expense
|
|
|
|
|
|
|||
Discount rate used to determine benefit obligation
|
4.04
|
%
|
|
3.79
|
%
|
|
4.48
|
%
|
Discount rate used to determine service cost
|
4.26
|
%
|
|
3.79
|
%
|
|
4.48
|
%
|
Discount rate used to determine interest cost
|
3.12
|
%
|
|
3.79
|
%
|
|
4.48
|
%
|
Initial health care cost trend rate
|
7.10
|
%
|
|
6.31
|
%
|
|
6.64
|
%
|
Ultimate health care cost trend rate
|
4.75
|
%
|
|
4.77
|
%
|
|
4.77
|
%
|
Year ultimate health care cost trend rate is achieved
|
2025
|
|
|
2024
|
|
|
2023
|
|
|
1% increase
|
|
1% decrease
|
||||
Effect on total service and interest cost
|
$
|
1
|
|
|
$
|
(1
|
)
|
Effect on other postretirement liabilities
|
17
|
|
|
(15
|
)
|
|
2017
|
|
2016
|
|
2015
|
|
2014
|
||||||||
United States plans
|
$
|
125
|
|
|
$
|
160
|
|
|
$
|
221
|
|
|
$
|
248
|
|
Non-United States plans
|
90
|
|
|
102
|
|
|
109
|
|
|
114
|
|
||||
Total contributions
|
$
|
215
|
|
|
$
|
262
|
|
|
$
|
330
|
|
|
$
|
362
|
|
|
Estimated
United States
pension payments
|
|
Estimated
non-United States
pension payments
|
|
Estimated other postretirement
benefit payments
|
||||||||||
|
|
|
Gross
|
|
Medicare prescription
drug subsidy
|
||||||||||
2017
|
$
|
309
|
|
|
$
|
77
|
|
|
$
|
53
|
|
|
$
|
(5
|
)
|
2018
|
279
|
|
|
80
|
|
|
50
|
|
|
(5
|
)
|
||||
2019
|
278
|
|
|
83
|
|
|
46
|
|
|
(4
|
)
|
||||
2020
|
281
|
|
|
86
|
|
|
42
|
|
|
(4
|
)
|
||||
2021
|
289
|
|
|
88
|
|
|
36
|
|
|
(3
|
)
|
||||
2022 - 2026
|
1,460
|
|
|
495
|
|
|
156
|
|
|
(9
|
)
|
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.
|
|
Total
|
|
Quoted prices
in active
markets for
identical assets
(Level 1)
|
|
Other
observable
inputs
(Level 2)
|
|
Unobservable
inputs
(Level 3)
|
||||||||
2016
|
|
|
|
|
|
|
|
||||||||
Common collective trusts
|
|
|
|
|
|
|
|
||||||||
Non-United States equity and global equities
|
$
|
413
|
|
|
$
|
—
|
|
|
$
|
413
|
|
|
$
|
—
|
|
United States equity
|
94
|
|
|
—
|
|
|
94
|
|
|
—
|
|
||||
Fixed income
|
422
|
|
|
—
|
|
|
422
|
|
|
—
|
|
||||
Fixed income securities
|
359
|
|
|
—
|
|
|
359
|
|
|
—
|
|
||||
United States treasuries
|
123
|
|
|
123
|
|
|
—
|
|
|
—
|
|
||||
Bank loans
|
150
|
|
|
—
|
|
|
150
|
|
|
—
|
|
||||
Real estate securities
|
201
|
|
|
195
|
|
|
—
|
|
|
6
|
|
||||
Equity securities
|
104
|
|
|
104
|
|
|
—
|
|
|
—
|
|
||||
Cash equivalents
|
276
|
|
|
21
|
|
|
255
|
|
|
—
|
|
||||
Exchange traded funds
|
55
|
|
|
55
|
|
|
—
|
|
|
—
|
|
||||
Other
|
109
|
|
|
—
|
|
|
14
|
|
|
95
|
|
||||
Common collective and other trusts measured at net asset value
|
2,038
|
|
|
|
|
|
|
|
|||||||
Hedge funds measured at net asset value
|
85
|
|
|
|
|
|
|
|
|||||||
Money market funds measured at net asset value
|
18
|
|
|
|
|
|
|
|
|||||||
Total pension plan assets
|
$
|
4,447
|
|
|
$
|
498
|
|
|
$
|
1,707
|
|
|
$
|
101
|
|
|
Total
|
|
Quoted prices
in active
markets for
identical assets
(Level 1)
|
|
Other
observable
inputs
(Level 2)
|
|
Unobservable
inputs
(Level 3)
|
||||||||
2015
|
|
|
|
|
|
|
|
||||||||
Common collective trusts
|
|
|
|
|
|
|
|
||||||||
Non-United States equity and global equities
|
$
|
415
|
|
|
$
|
—
|
|
|
$
|
415
|
|
|
$
|
—
|
|
United States equity
|
96
|
|
|
—
|
|
|
96
|
|
|
—
|
|
||||
Fixed income
|
418
|
|
|
—
|
|
|
418
|
|
|
—
|
|
||||
Fixed income securities
|
357
|
|
|
—
|
|
|
357
|
|
|
—
|
|
||||
United States treasuries
|
105
|
|
|
105
|
|
|
—
|
|
|
—
|
|
||||
Bank loans
|
136
|
|
|
—
|
|
|
136
|
|
|
—
|
|
||||
Real estate securities
|
251
|
|
|
244
|
|
|
—
|
|
|
7
|
|
||||
Equity securities
|
98
|
|
|
98
|
|
|
—
|
|
|
—
|
|
||||
Cash equivalents
|
227
|
|
|
17
|
|
|
210
|
|
|
—
|
|
||||
Exchange traded funds
|
49
|
|
|
49
|
|
|
—
|
|
|
—
|
|
||||
Other
|
100
|
|
|
—
|
|
|
14
|
|
|
86
|
|
||||
Common collective and other trusts measured at net asset value
|
2,043
|
|
|
|
|
|
|
|
|||||||
Hedge funds measured at net asset value
|
92
|
|
|
|
|
|
|
|
|||||||
Money market funds measured at net asset value
|
19
|
|
|
|
|
|
|
|
|||||||
Total pension plan assets
|
$
|
4,406
|
|
|
$
|
513
|
|
|
$
|
1,646
|
|
|
$
|
93
|
|
|
Real estate securities
|
|
Other
|
|
Total
|
||||||
Balance at December 31, 2014
|
$
|
6
|
|
|
$
|
60
|
|
|
$
|
66
|
|
Actual return on plan assets:
|
|
|
|
|
|
||||||
Gains (losses) relating to assets still held at year-end
|
1
|
|
|
(2
|
)
|
|
(1
|
)
|
|||
Purchases, sales, settlements - net
|
—
|
|
|
37
|
|
|
37
|
|
|||
Transfers into or out of Level 3
|
—
|
|
|
(9
|
)
|
|
(9
|
)
|
|||
Balance at December 31, 2015
|
7
|
|
|
86
|
|
|
93
|
|
|||
Actual return on plan assets:
|
|
|
|
|
|
||||||
Gains (losses) relating to assets still held at year-end
|
—
|
|
|
(6
|
)
|
|
(6
|
)
|
|||
Purchases, sales, settlements - net
|
(1
|
)
|
|
15
|
|
|
14
|
|
|||
Transfers into or out of Level 3
|
—
|
|
|
—
|
|
|
—
|
|
|||
Balance at December 31, 2016
|
$
|
6
|
|
|
$
|
95
|
|
|
$
|
101
|
|
|
Total
|
|
Quoted prices
in active
markets for
identical assets
(Level 1)
|
|
Other
observable
inputs
(Level 2)
|
|
Unobservable
inputs
(Level 3)
|
||||||||
2016
|
|
|
|
|
|
|
|
||||||||
Cash equivalents
|
$
|
8
|
|
|
$
|
8
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Common collective and other trusts measured at net asset value
|
66
|
|
|
|
|
|
|
|
|||||||
Total other postretirement benefits plan assets
|
$
|
74
|
|
|
$
|
8
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
Total
|
|
Quoted prices
in active
markets for
identical assets
(Level 1)
|
|
Other
observable
inputs
(Level 2)
|
|
Unobservable
inputs
(Level 3)
|
||||||||
2015
|
|
|
|
|
|
|
|
||||||||
Fixed income securities
|
18
|
|
|
—
|
|
|
18
|
|
|
—
|
|
||||
United States treasuries
|
20
|
|
|
20
|
|
|
—
|
|
|
—
|
|
||||
Cash equivalents
|
11
|
|
|
11
|
|
|
—
|
|
|
—
|
|
||||
Common collective and other trusts measured at net asset value
|
44
|
|
|
|
|
|
|
|
|||||||
Total other postretirement benefits plan assets
|
$
|
93
|
|
|
$
|
31
|
|
|
$
|
18
|
|
|
$
|
—
|
|
2016
|
$
|
72
|
|
2015
|
137
|
|
|
2014
|
141
|
|
Note 8.
|
COMMITMENTS AND CONTINGENCIES
|
|
2016
|
|
2015
|
|
2014
|
||||||
Balance at January 1
|
$
|
195
|
|
|
$
|
213
|
|
|
$
|
189
|
|
Provision
|
117
|
|
|
104
|
|
|
125
|
|
|||
Settled
|
(130
|
)
|
|
(114
|
)
|
|
(120
|
)
|
|||
Other
|
(2
|
)
|
|
(8
|
)
|
|
19
|
|
|||
Balance at December 31
|
$
|
180
|
|
|
$
|
195
|
|
|
$
|
213
|
|
2017
|
$
|
163
|
|
2018
|
127
|
|
|
2019
|
85
|
|
|
2020
|
58
|
|
|
2021
|
40
|
|
|
Thereafter
|
63
|
|
|
Total noncancelable lease commitments
|
$
|
536
|
|
2016
|
$
|
220
|
|
2015
|
225
|
|
|
2014
|
244
|
|
Note 9.
|
INCOME TAXES
|
|
Income (loss) before income taxes
|
||||||||||
|
2016
|
|
2015
|
|
2014
|
||||||
Ireland
|
$
|
(923
|
)
|
|
$
|
(608
|
)
|
|
$
|
(332
|
)
|
Foreign
|
3,050
|
|
|
2,753
|
|
|
2,093
|
|
|||
Total income before income taxes
|
$
|
2,127
|
|
|
$
|
2,145
|
|
|
$
|
1,761
|
|
|
Income tax expense (benefit)
|
||||||||||
|
2016
|
|
2015
|
|
2014
|
||||||
Current
|
|
|
|
|
|
||||||
Ireland
|
$
|
2
|
|
|
$
|
8
|
|
|
$
|
(13
|
)
|
United States
|
|
|
|
|
|
||||||
Federal
|
95
|
|
|
88
|
|
|
87
|
|
|||
State and local
|
(2
|
)
|
|
22
|
|
|
41
|
|
|||
Foreign - other
|
209
|
|
|
240
|
|
|
239
|
|
|||
Total current income tax expense
|
304
|
|
|
358
|
|
|
354
|
|
|||
|
|
|
|
|
|
||||||
Deferred
|
|
|
|
|
|
||||||
Ireland
|
2
|
|
|
1
|
|
|
2
|
|
|||
United States
|
|
|
|
|
|
||||||
Federal
|
(72
|
)
|
|
(65
|
)
|
|
(224
|
)
|
|||
State and local
|
(2
|
)
|
|
(6
|
)
|
|
(49
|
)
|
|||
Foreign - other
|
(30
|
)
|
|
(124
|
)
|
|
(125
|
)
|
|||
Total deferred income tax benefit
|
(102
|
)
|
|
(194
|
)
|
|
(396
|
)
|
|||
Total income tax expense (benefit)
|
$
|
202
|
|
|
$
|
164
|
|
|
$
|
(42
|
)
|
|
2016
|
|
2015
|
|
2014
|
|||
Income taxes at the applicable statutory rate
|
25.0
|
%
|
|
25.0
|
%
|
|
25.0
|
%
|
|
|
|
|
|
|
|||
Ireland operations
|
|
|
|
|
|
|||
Ireland tax on trading income
|
(0.3
|
)%
|
|
(0.4
|
)%
|
|
(0.1
|
)%
|
Nondeductible interest expense
|
11.5
|
%
|
|
7.9
|
%
|
|
4.8
|
%
|
|
|
|
|
|
|
|||
United States operations
|
|
|
|
|
|
|||
United States (loss) income
|
0.2
|
%
|
|
(0.4
|
)%
|
|
(2.8
|
)%
|
Nondeductible goodwill - Aerospace divestitures
|
—
|
%
|
|
—
|
%
|
|
1.4
|
%
|
Credit for research activities
|
(0.8
|
)%
|
|
(0.8
|
)%
|
|
(1.0
|
)%
|
Other - net
|
2.5
|
%
|
|
5.4
|
%
|
|
1.5
|
%
|
|
|
|
|
|
|
|||
Other foreign operations
|
|
|
|
|
|
|||
United States foreign tax credit
|
0.6
|
%
|
|
(0.8
|
)%
|
|
(1.1
|
)%
|
Other foreign operations (earnings taxed at other than
the applicable statutory tax rate)
|
(26.8
|
)%
|
|
(25.1
|
)%
|
|
(24.8
|
)%
|
Other foreign operations - other items
|
0.9
|
%
|
|
(0.5
|
)%
|
|
(1.0
|
)%
|
|
|
|
|
|
|
|||
Worldwide operations
|
|
|
|
|
|
|||
Adjustments to tax liabilities
|
(2.5
|
)%
|
|
(1.4
|
)%
|
|
(1.7
|
)%
|
Adjustments to valuation allowances
|
(0.8
|
)%
|
|
(1.2
|
)%
|
|
(2.6
|
)%
|
Effective income tax expense (benefit) rate
|
9.5
|
%
|
|
7.7
|
%
|
|
(2.4
|
)%
|
2016
|
$
|
272
|
|
2015
|
302
|
|
|
2014
|
258
|
|
|
2016
|
|
2015
|
||||
|
Noncurrent
assets and
liabilities
|
|
Noncurrent
assets and
liabilities
|
||||
Accruals and other adjustments
|
|
|
|
||||
Employee benefits
|
$
|
761
|
|
|
$
|
808
|
|
Depreciation and amortization
|
(1,823
|
)
|
|
(1,824
|
)
|
||
Other accruals and adjustments
|
796
|
|
|
717
|
|
||
United States federal income tax loss carryforwards
|
51
|
|
|
20
|
|
||
United States federal income tax credit carryforwards
|
182
|
|
|
183
|
|
||
United States state and local tax loss carryforwards and
tax credit carryforwards
|
63
|
|
|
63
|
|
||
Other foreign tax loss carryforwards
|
1,715
|
|
|
2,265
|
|
||
Other foreign income tax credit carryforwards
|
63
|
|
|
70
|
|
||
Valuation allowance for income tax loss and income tax
credit carryforwards
|
(1,728
|
)
|
|
(2,315
|
)
|
||
Other valuation allowances
|
(41
|
)
|
|
(15
|
)
|
||
Total deferred income taxes
|
$
|
39
|
|
|
$
|
(28
|
)
|
|
2017
through
2021
|
|
2022
through
2026
|
|
2027
through
2031
|
|
2032
through
2036
|
|
Not
subject to
expiration
|
|
Valuation
allowance
|
||||||||||||
Ireland and Non-U.S. income tax loss carryforwards
|
$
|
652
|
|
|
$
|
7,476
|
|
|
$
|
3
|
|
|
$
|
—
|
|
|
$
|
3,685
|
|
|
$
|
—
|
|
Ireland and Non-U.S. deferred income tax assets for income tax loss carryforwards
|
76
|
|
|
688
|
|
|
1
|
|
|
—
|
|
|
950
|
|
|
(1,607
|
)
|
||||||
Ireland and Non-U.S. income tax credit carryforwards
|
10
|
|
|
21
|
|
|
2
|
|
|
—
|
|
|
30
|
|
|
(31
|
)
|
|
2017
through 2021 |
|
2022
through 2026 |
|
2027
through 2031 |
|
2032
through 2036 |
|
2037
through 2041 |
|
Not
subject to
expiration
|
|
Valuation
allowance
|
||||||||||||||
United States federal income tax loss carryforwards
|
$
|
—
|
|
|
$
|
15
|
|
|
$
|
20
|
|
|
$
|
618
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
United States federal deferred income tax assets for income tax loss carryforwards
|
—
|
|
|
5
|
|
|
7
|
|
|
172
|
|
|
—
|
|
|
—
|
|
|
(12
|
)
|
|||||||
United States federal deferred income tax assets for income tax loss carryforwards after ASU 2013-11
|
—
|
|
|
5
|
|
|
7
|
|
|
39
|
|
|
—
|
|
|
—
|
|
|
(12
|
)
|
|||||||
United States federal income tax credit carryforwards
|
62
|
|
|
36
|
|
|
39
|
|
|
115
|
|
|
—
|
|
|
29
|
|
|
(44
|
)
|
|||||||
United States federal income tax credit carryforwards after ASU 2013-11
|
62
|
|
|
36
|
|
|
8
|
|
|
76
|
|
|
—
|
|
|
—
|
|
|
(44
|
)
|
|
2017
through 2021 |
|
2022
through 2026 |
|
2027
through 2031 |
|
2032
through 2036 |
|
2037
through 2041 |
|
Not
subject to
expiration
|
|
Valuation
allowance
|
||||||||||||||
United States state and local deferred income tax assets for income tax loss carryforwards - net of federal tax effect
|
$
|
8
|
|
|
$
|
17
|
|
|
$
|
11
|
|
|
$
|
8
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(17
|
)
|
United States state and local deferred income tax assets for income tax loss carryforwards - net of federal tax effect after ASU 2013-11
|
—
|
|
|
12
|
|
|
11
|
|
|
8
|
|
|
—
|
|
|
—
|
|
|
(17
|
)
|
|||||||
United States state and local income tax credit carryforwards - net of federal tax effect
|
11
|
|
|
11
|
|
|
7
|
|
|
4
|
|
|
5
|
|
|
—
|
|
|
(17
|
)
|
|||||||
United States state and local income tax credit carryforwards - net of federal tax effect after ASU 2013-11
|
8
|
|
|
11
|
|
|
6
|
|
|
2
|
|
|
5
|
|
|
—
|
|
|
(17
|
)
|
|
2016
|
|
2015
|
|
2014
|
||||||
Balance at January 1
|
$
|
584
|
|
|
$
|
493
|
|
|
$
|
479
|
|
Increases and decreases as a result of positions taken during prior years
|
|
|
|
|
|
||||||
Transfers from valuation allowances
|
—
|
|
|
—
|
|
|
(3
|
)
|
|||
Other increases, including currency translation
|
21
|
|
|
34
|
|
|
37
|
|
|||
Other decreases, including currency translation
|
(24
|
)
|
|
(34
|
)
|
|
(3
|
)
|
|||
Balances related to acquired businesses
|
—
|
|
|
(1
|
)
|
|
(3
|
)
|
|||
Increases as a result of positions taken during the current year
|
90
|
|
|
109
|
|
|
65
|
|
|||
Decreases relating to settlements with tax authorities
|
(19
|
)
|
|
—
|
|
|
(51
|
)
|
|||
Decreases as a result of a lapse of the applicable statute of limitations
|
(23
|
)
|
|
(17
|
)
|
|
(28
|
)
|
|||
Balance at December 31
|
$
|
629
|
|
|
$
|
584
|
|
|
$
|
493
|
|
Note 10.
|
EATON SHAREHOLDERS' EQUITY
|
|
2016
|
|
2015
|
|
2014
|
||||||||||||||||||
|
Pre-tax
|
|
After-tax
|
|
Pre-tax
|
|
After-tax
|
|
Pre-tax
|
|
After-tax
|
||||||||||||
Currency translation and related hedging instruments
|
$
|
(562
|
)
|
|
$
|
(570
|
)
|
|
$
|
(1,080
|
)
|
|
$
|
(1,078
|
)
|
|
$
|
(1,014
|
)
|
|
$
|
(1,019
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Pensions and other postretirement benefits
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Prior service credit (cost) arising during the year
|
(2
|
)
|
|
(2
|
)
|
|
1
|
|
|
1
|
|
|
82
|
|
|
51
|
|
||||||
Net (loss) gain arising during the year
|
(247
|
)
|
|
(197
|
)
|
|
(123
|
)
|
|
(89
|
)
|
|
(718
|
)
|
|
(519
|
)
|
||||||
Currency translation
|
74
|
|
|
62
|
|
|
62
|
|
|
46
|
|
|
56
|
|
|
47
|
|
||||||
Other
|
—
|
|
|
(2
|
)
|
|
—
|
|
|
(3
|
)
|
|
—
|
|
|
(4
|
)
|
||||||
Amortization of actuarial loss and prior service cost
reclassified to earnings
|
201
|
|
|
133
|
|
|
237
|
|
|
156
|
|
|
168
|
|
|
110
|
|
||||||
|
26
|
|
|
(6
|
)
|
|
177
|
|
|
111
|
|
|
(412
|
)
|
|
(315
|
)
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cash flow hedges
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Gain (loss) on derivatives designated as cash flow hedges
|
(21
|
)
|
|
(14
|
)
|
|
20
|
|
|
13
|
|
|
(3
|
)
|
|
(2
|
)
|
||||||
Changes in cash flow hedges reclassified to earnings
|
8
|
|
|
5
|
|
|
(16
|
)
|
|
(10
|
)
|
|
(5
|
)
|
|
(3
|
)
|
||||||
Cash flow hedges, net of reclassification adjustments
|
(13
|
)
|
|
(9
|
)
|
|
4
|
|
|
3
|
|
|
(8
|
)
|
|
(5
|
)
|
||||||
Other comprehensive income (loss) income attributable to Eaton ordinary shareholders
|
$
|
(549
|
)
|
|
$
|
(585
|
)
|
|
$
|
(899
|
)
|
|
$
|
(964
|
)
|
|
$
|
(1,434
|
)
|
|
$
|
(1,339
|
)
|
|
Currency translation and related hedging instruments
|
|
Pensions and other postretirement benefits
|
|
Cash flow
hedges
|
|
Total
|
||||||||
Balance at December 31, 2015
|
$
|
(2,492
|
)
|
|
$
|
(1,374
|
)
|
|
$
|
3
|
|
|
$
|
(3,863
|
)
|
Other comprehensive (loss) income before
reclassifications
|
(570
|
)
|
|
(139
|
)
|
|
(14
|
)
|
|
(723
|
)
|
||||
Amounts reclassified from Accumulated other
comprehensive loss (income)
|
—
|
|
|
133
|
|
|
5
|
|
|
138
|
|
||||
Net current-period Other comprehensive
(loss) income
|
(570
|
)
|
|
(6
|
)
|
|
(9
|
)
|
|
(585
|
)
|
||||
Balance at December 31, 2016
|
$
|
(3,062
|
)
|
|
$
|
(1,380
|
)
|
|
$
|
(6
|
)
|
|
$
|
(4,448
|
)
|
|
|
December 31, 2016
|
|
Consolidated Statements of
Income classification
|
||
Amortization of defined benefit pension and other
postretirement benefits items
|
|
|
|
|
||
Actuarial loss and prior service cost
|
|
$
|
(201
|
)
|
|
1
|
Tax benefit
|
|
68
|
|
|
|
|
Total, net of tax
|
|
(133
|
)
|
|
|
|
|
|
|
|
|
||
Gains and (losses) on cash flow hedges
|
|
|
|
|
||
Currency exchange contracts
|
|
(8
|
)
|
|
Cost of products sold
|
|
Tax benefit
|
|
3
|
|
|
|
|
Total, net of tax
|
|
(5
|
)
|
|
|
|
|
|
|
|
|
||
Total reclassifications for the period
|
|
$
|
(138
|
)
|
|
|
(Shares in millions)
|
2016
|
|
2015
|
|
2014
|
||||||
Net income attributable to Eaton ordinary shareholders
|
$
|
1,922
|
|
|
$
|
1,979
|
|
|
$
|
1,793
|
|
|
|
|
|
|
|
||||||
Weighted-average number of ordinary shares outstanding - diluted
|
456.5
|
|
|
467.1
|
|
|
476.8
|
|
|||
Less dilutive effect of equity-based compensation
|
1.5
|
|
|
1.6
|
|
|
2.7
|
|
|||
Weighted-average number of ordinary shares outstanding - basic
|
455.0
|
|
|
465.5
|
|
|
474.1
|
|
|||
|
|
|
|
|
|
||||||
Net income per share attributable to Eaton ordinary shareholders
|
|
|
|
|
|
||||||
Diluted
|
$
|
4.21
|
|
|
$
|
4.23
|
|
|
$
|
3.76
|
|
Basic
|
4.22
|
|
|
4.25
|
|
|
3.78
|
|
Note 11.
|
EQUITY-BASED COMPENSATION
|
(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
|
2.1
|
|
|
$
|
65.06
|
|
Granted
|
1.6
|
|
|
52.80
|
|
|
Vested
|
(0.9
|
)
|
|
64.11
|
|
|
Forfeited
|
(0.2
|
)
|
|
59.89
|
|
|
Non-vested at December 31
|
2.6
|
|
|
$
|
57.87
|
|
|
2016
|
|
2015
|
|
2014
|
||||||
Pretax expense for RSUs and RSAs
|
$
|
65
|
|
|
$
|
68
|
|
|
$
|
81
|
|
After-tax expense for RSUs and RSAs
|
42
|
|
|
44
|
|
|
53
|
|
|||
Fair value of vested RSUs and RSAs
|
71
|
|
|
110
|
|
|
105
|
|
|
|
2016
|
||
Expected volatility
|
|
24
|
%
|
|
Risk-free interest rate
|
|
0.88
|
%
|
|
Weighted-average fair value of PSUs granted
|
|
$
|
76.41
|
|
(Performance share units in millions)
|
|
Number of performance
share units |
|
Weighted-average fair
value per unit |
|||
Non-vested at January 1
|
|
—
|
|
|
$
|
—
|
|
Granted
1
|
|
0.6
|
|
|
76.41
|
|
|
Vested
|
|
—
|
|
|
—
|
|
|
Forfeited
|
|
(0.1
|
)
|
|
76.41
|
|
|
Non-vested at December 31
|
|
0.5
|
|
|
$
|
76.41
|
|
(Performance share units in millions)
|
|
Number of performance
share units |
|
Weighted-average fair
value per unit |
|||
Non-vested at January 1
|
|
0.8
|
|
|
$
|
71.72
|
|
Granted
|
|
0.1
|
|
|
56.55
|
|
|
Vested
|
|
—
|
|
|
—
|
|
|
Forfeited
|
|
(0.2
|
)
|
|
71.72
|
|
|
Non-vested at December 31
|
|
0.7
|
|
|
$
|
68.23
|
|
|
|
2016
|
|
2015
|
||||
Pretax expense for PSUs
|
|
$
|
13
|
|
|
$
|
2
|
|
After-tax expense for PSUs
|
|
8
|
|
|
1
|
|
|
2016
|
|
2015
|
|
2014
|
||||||
Expected volatility
|
27
|
%
|
|
29
|
%
|
|
34
|
%
|
|||
Expected option life in years
|
5.5
|
|
|
5.5
|
|
|
5.5
|
|
|||
Expected dividend yield
|
2.5
|
%
|
|
2.6
|
%
|
|
2.4
|
%
|
|||
Risk-free interest rate
|
1.2 to 1.5%
|
|
|
1.6 to
1.5%
|
|
|
1.7 to 1.5%
|
|
|||
Weighted-average fair value of stock options granted
|
$
|
11.80
|
|
|
$
|
15.25
|
|
|
$
|
19.46
|
|
(Options in millions)
|
Weighted-average
exercise price per option
|
|
Options
|
|
Weighted-average
remaining
contractual life
in years
|
|
Aggregate
intrinsic
value
|
|||||
Outstanding at January 1, 2016
|
$
|
51.94
|
|
|
6.2
|
|
|
|
|
|
||
Granted
|
56.73
|
|
|
1.3
|
|
|
|
|
|
|||
Exercised
|
40.32
|
|
|
(1.9
|
)
|
|
|
|
|
|||
Forfeited and canceled
|
65.74
|
|
|
(0.1
|
)
|
|
|
|
|
|||
Outstanding at December 31, 2016
|
$
|
56.75
|
|
|
5.5
|
|
|
5.6
|
|
$
|
64.5
|
|
|
|
|
|
|
|
|
|
|||||
Exercisable at December 31, 2016
|
$
|
54.28
|
|
|
3.7
|
|
|
4.0
|
|
$
|
51.3
|
|
Reserved for future grants at December 31, 2016
|
|
|
18.6
|
|
|
|
|
|
|
2016
|
|
2015
|
|
2014
|
||||||
Pretax expense for stock options
|
$
|
14
|
|
|
$
|
12
|
|
|
$
|
12
|
|
After-tax expense for stock options
|
9
|
|
|
8
|
|
|
8
|
|
|||
Proceeds from stock options exercised
|
74
|
|
|
52
|
|
|
54
|
|
|||
Income tax benefit related to stock options exercised
|
|
|
|
|
|
||||||
Tax benefit classified in operating activities in the Consolidated
Statements of Cash Flows
|
5
|
|
|
4
|
|
|
4
|
|
|||
Excess tax benefit classified in financing activities in the
Consolidated Statements of Cash Flows
|
1
|
|
|
1
|
|
|
15
|
|
|||
Intrinsic value of stock options exercised
|
42
|
|
|
44
|
|
|
55
|
|
|||
Total fair value of stock options vested
|
$
|
14
|
|
|
$
|
12
|
|
|
$
|
12
|
|
|
|
|
|
|
|
||||||
Stock options exercised, in millions of options
|
1.9
|
|
|
1.4
|
|
|
1.5
|
|
Note 12.
|
FAIR VALUE MEASUREMENTS
|
|
Total
|
|
Quoted prices
in active
markets for
identical assets
(Level 1)
|
|
Other
observable
inputs
(Level 2)
|
|
Unobservable
inputs
(Level 3)
|
||||||||
2016
|
|
|
|
|
|
|
|
||||||||
Cash
|
$
|
543
|
|
|
$
|
543
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Short-term investments
|
203
|
|
|
203
|
|
|
—
|
|
|
—
|
|
||||
Net derivative contracts
|
(3
|
)
|
|
—
|
|
|
(3
|
)
|
|
—
|
|
||||
Long-term debt converted to floating interest rates by
interest rate swaps - net
|
(58
|
)
|
|
—
|
|
|
(58
|
)
|
|
—
|
|
||||
|
|
|
|
|
|
|
|
||||||||
2015
|
|
|
|
|
|
|
|
||||||||
Cash
|
$
|
268
|
|
|
$
|
268
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Short-term investments
|
177
|
|
|
177
|
|
|
—
|
|
|
—
|
|
||||
Net derivative contracts
|
86
|
|
|
—
|
|
|
86
|
|
|
—
|
|
||||
Long-term debt converted to floating interest rates by
interest rate swaps - net
|
(94
|
)
|
|
—
|
|
|
(94
|
)
|
|
—
|
|
|
2016
|
|
2015
|
||||
Time deposits, certificates of deposit and demand deposits with banks
|
$
|
149
|
|
|
$
|
122
|
|
Money market investments
|
54
|
|
|
55
|
|
||
Total short-term investments
|
$
|
203
|
|
|
$
|
177
|
|
Note 13.
|
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES
|
•
|
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.
|
Notional amount
|
|
Fixed interest
rate received
|
|
Floating interest
rate paid
|
|
Basis for contracted floating interest rate paid
|
||
$
|
150
|
|
|
5.30%
|
|
4.75%
|
|
1 month LIBOR + 4.26%
|
750
|
|
|
1.50%
|
|
0.95%
|
|
1 month LIBOR + 0.46%
|
|
415
|
|
|
5.60%
|
|
4.26%
|
|
6 month LIBOR + 3.18%
|
|
300
|
|
|
6.95%
|
|
5.85%
|
|
3 month LIBOR + 5.07%
|
|
25
|
|
|
8.88%
|
|
4.96%
|
|
6 month LIBOR + 3.84%
|
|
150
|
|
|
3.88%
|
|
2.61%
|
|
1 month LIBOR + 2.12%
|
|
275
|
|
|
3.47%
|
|
2.23%
|
|
1 month LIBOR + 1.74%
|
|
1,400
|
|
|
2.75%
|
|
1.07%
|
|
1 month LIBOR + 0.58%
|
|
200
|
|
|
3.68%
|
|
1.56%
|
|
1 month LIBOR + 1.07%
|
|
25
|
|
|
7.63%
|
|
3.55%
|
|
6 month LIBOR + 2.48%
|
|
50
|
|
|
7.65%
|
|
3.65%
|
|
6 month LIBOR + 2.57%
|
|
25
|
|
|
5.45%
|
|
1.36%
|
|
6 month LIBOR + 0.28%
|
Notional amount
|
|
Floating interest
rate to be received |
|
Fixed interest
rate to be paid |
|
Basis for contracted floating interest rate received
|
||
$
|
50
|
|
|
—%
|
|
2.52%
|
|
3 month LIBOR + 0.00%
|
50
|
|
|
—%
|
|
2.38%
|
|
3 month LIBOR + 0.00%
|
|
50
|
|
|
—%
|
|
2.19%
|
|
3 month LIBOR + 0.00%
|
|
50
|
|
|
—%
|
|
2.19%
|
|
3 month LIBOR + 0.00%
|
|
50
|
|
|
—%
|
|
1.95%
|
|
3 month LIBOR + 0.00%
|
|
50
|
|
|
—%
|
|
1.80%
|
|
3 month LIBOR + 0.00%
|
|
50
|
|
|
—%
|
|
1.67%
|
|
3 month LIBOR + 0.00%
|
|
50
|
|
|
—%
|
|
1.66%
|
|
3 month LIBOR + 0.00%
|
|
50
|
|
|
—%
|
|
1.53%
|
|
3 month LIBOR + 0.00%
|
|
Notional
amount
|
|
Other
current
assets
|
|
Other
noncurrent
assets
|
|
Other
current
liabilities
|
|
Other
noncurrent
liabilities
|
|
Type of
hedge
|
|
Term
|
||||||||||
December 31, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Derivatives designated as hedges
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Fixed-to-floating interest rate swaps
|
$
|
3,765
|
|
|
$
|
1
|
|
|
$
|
65
|
|
|
$
|
—
|
|
|
$
|
8
|
|
|
Fair value
|
|
3 months to 18 years
|
Forward starting floating-to-fixed interest rate swaps
|
450
|
|
|
—
|
|
|
19
|
|
|
—
|
|
|
1
|
|
|
Cash flow
|
|
11 years
|
|||||
Currency exchange contracts
|
802
|
|
|
11
|
|
|
1
|
|
|
22
|
|
|
17
|
|
|
Cash flow
|
|
1 to 36 months
|
|||||
Total
|
|
|
$
|
12
|
|
|
$
|
85
|
|
|
$
|
22
|
|
|
$
|
26
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Derivatives not designated as hedges
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Currency exchange contracts
|
$
|
5,333
|
|
|
$
|
31
|
|
|
|
|
$
|
85
|
|
|
|
|
|
|
1 to 12 months
|
||||
Commodity contracts
|
10
|
|
|
2
|
|
|
|
|
—
|
|
|
|
|
|
|
1 to 12 months
|
|||||||
Total
|
|
|
$
|
33
|
|
|
|
|
$
|
85
|
|
|
|
|
|
|
|
December 31, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Derivatives designated as hedges
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Fixed-to-floating interest rate swaps
|
$
|
3,715
|
|
|
$
|
—
|
|
|
$
|
96
|
|
|
$
|
—
|
|
|
$
|
2
|
|
|
Fair value
|
|
2 to 19 years
|
Forward starting floating-to-fixed interest rate swaps
|
50
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Cash flow
|
|
12 years
|
|||||
Currency exchange contracts
|
724
|
|
|
18
|
|
|
1
|
|
|
8
|
|
|
6
|
|
|
Cash flow
|
|
1 to 36 months
|
|||||
Commodity contracts
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Cash flow
|
|
1 to 12 months
|
|||||
Total
|
|
|
$
|
18
|
|
|
$
|
97
|
|
|
$
|
8
|
|
|
$
|
8
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Derivatives not designated as hedges
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Currency exchange contracts
|
$
|
4,198
|
|
|
$
|
27
|
|
|
|
|
$
|
40
|
|
|
|
|
|
|
1 to 12 months
|
||||
Total
|
|
|
$
|
27
|
|
|
|
|
|
$
|
40
|
|
|
|
|
|
|
|
|
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
|
||||||||||||
|
2016
|
|
2015
|
|
|
|
2016
|
|
2015
|
||||||||
Derivatives designated as cash flow hedges
|
|
|
|
|
|
|
|
|
|
||||||||
Forward starting floating-to-fixed interest rate swaps
|
$
|
18
|
|
|
$
|
—
|
|
|
Interest expense - net
|
|
$
|
—
|
|
|
$
|
—
|
|
Currency exchange contracts
|
(39
|
)
|
|
20
|
|
|
Cost of products sold
|
|
(8
|
)
|
|
16
|
|
||||
Total
|
$
|
(21
|
)
|
|
$
|
20
|
|
|
|
|
$
|
(8
|
)
|
|
$
|
16
|
|
|
2016
|
|
2015
|
||||
Derivatives designated as fair value hedges
|
|
|
|
||||
Fixed-to-floating interest rate swaps
|
$
|
(36
|
)
|
|
$
|
20
|
|
Related long-term debt converted to floating interest
rates by interest rate swaps
|
36
|
|
|
(20
|
)
|
||
|
$
|
—
|
|
|
$
|
—
|
|
Note 14.
|
ACCOUNTS RECEIVABLE AND INVENTORY
|
|
2016
|
|
2015
|
||||
Raw materials
|
$
|
880
|
|
|
$
|
885
|
|
Work-in-process
|
396
|
|
|
412
|
|
||
Finished goods
|
1,074
|
|
|
1,131
|
|
||
Inventory at FIFO
|
2,350
|
|
|
2,428
|
|
||
Excess of FIFO over LIFO cost
|
(96
|
)
|
|
(105
|
)
|
||
Total inventory
|
$
|
2,254
|
|
|
$
|
2,323
|
|
Note 15.
|
BUSINESS SEGMENT AND GEOGRAPHIC REGION INFORMATION
|
|
2016
|
|
2015
|
|
2014
|
||||||
Net sales
|
|
|
|
|
|
||||||
Electrical Products
|
$
|
6,957
|
|
|
$
|
6,976
|
|
|
$
|
7,254
|
|
Electrical Systems and Services
|
5,662
|
|
|
5,931
|
|
|
6,457
|
|
|||
Hydraulics
|
2,222
|
|
|
2,459
|
|
|
2,975
|
|
|||
Aerospace
|
1,753
|
|
|
1,807
|
|
|
1,860
|
|
|||
Vehicle
|
3,153
|
|
|
3,682
|
|
|
4,006
|
|
|||
Total net sales
|
$
|
19,747
|
|
|
$
|
20,855
|
|
|
$
|
22,552
|
|
|
|
|
|
|
|
||||||
Segment operating profit
|
|
|
|
|
|
||||||
Electrical Products
|
$
|
1,240
|
|
|
$
|
1,156
|
|
|
$
|
1,184
|
|
Electrical Systems and Services
|
711
|
|
|
776
|
|
|
843
|
|
|||
Hydraulics
|
198
|
|
|
246
|
|
|
367
|
|
|||
Aerospace
|
335
|
|
|
310
|
|
|
273
|
|
|||
Vehicle
|
474
|
|
|
645
|
|
|
645
|
|
|||
Total segment operating profit
|
2,958
|
|
|
3,133
|
|
|
3,312
|
|
|||
|
|
|
|
|
|
||||||
Corporate
|
|
|
|
|
|
||||||
Litigation settlements
|
—
|
|
|
—
|
|
|
(644
|
)
|
|||
Amortization of intangible assets
|
(392
|
)
|
|
(406
|
)
|
|
(431
|
)
|
|||
Interest expense - net
|
(233
|
)
|
|
(232
|
)
|
|
(227
|
)
|
|||
Pension and other postretirement benefits expense
|
(60
|
)
|
|
(130
|
)
|
|
(138
|
)
|
|||
Other corporate expense - net
|
(146
|
)
|
|
(220
|
)
|
|
(111
|
)
|
|||
Income before income taxes
|
2,127
|
|
|
2,145
|
|
|
1,761
|
|
|||
Income tax expense (benefit)
|
202
|
|
|
164
|
|
|
(42
|
)
|
|||
Net income
|
1,925
|
|
|
1,981
|
|
|
1,803
|
|
|||
Less net income for noncontrolling interests
|
(3
|
)
|
|
(2
|
)
|
|
(10
|
)
|
|||
Net income attributable to Eaton ordinary shareholders
|
$
|
1,922
|
|
|
$
|
1,979
|
|
|
$
|
1,793
|
|
|
2016
|
|
2015
|
|
2014
|
||||||
Electrical Products
|
$
|
3
|
|
|
$
|
25
|
|
|
$
|
66
|
|
Electrical Systems and Services
|
1
|
|
|
15
|
|
|
51
|
|
|||
Hydraulics
|
—
|
|
|
2
|
|
|
12
|
|
|||
Total
|
$
|
4
|
|
|
$
|
42
|
|
|
$
|
129
|
|
|
2016
|
|
2015
|
|
2014
|
||||||
Identifiable assets
|
|
|
|
|
|
||||||
Electrical Products
|
$
|
2,363
|
|
|
$
|
2,538
|
|
|
$
|
3,012
|
|
Electrical Systems and Services
|
2,222
|
|
|
2,285
|
|
|
2,512
|
|
|||
Hydraulics
|
1,188
|
|
|
1,138
|
|
|
1,315
|
|
|||
Aerospace
|
830
|
|
|
841
|
|
|
832
|
|
|||
Vehicle
|
1,549
|
|
|
1,579
|
|
|
1,668
|
|
|||
Total identifiable assets
|
8,152
|
|
|
8,381
|
|
|
9,339
|
|
|||
Goodwill
|
13,201
|
|
|
13,479
|
|
|
13,893
|
|
|||
Other intangible assets
|
5,514
|
|
|
6,014
|
|
|
6,556
|
|
|||
Corporate
|
3,552
|
|
|
3,122
|
|
|
3,699
|
|
|||
Total assets
|
$
|
30,419
|
|
|
$
|
30,996
|
|
|
$
|
33,487
|
|
|
|
|
|
|
|
||||||
Capital expenditures for property, plant and equipment
|
|
|
|
|
|
||||||
Electrical Products
|
$
|
134
|
|
|
$
|
137
|
|
|
$
|
170
|
|
Electrical Systems and Services
|
78
|
|
|
94
|
|
|
147
|
|
|||
Hydraulics
|
92
|
|
|
61
|
|
|
79
|
|
|||
Aerospace
|
28
|
|
|
33
|
|
|
28
|
|
|||
Vehicle
|
142
|
|
|
119
|
|
|
160
|
|
|||
Total
|
474
|
|
|
444
|
|
|
584
|
|
|||
Corporate
|
23
|
|
|
62
|
|
|
48
|
|
|||
Total expenditures for property, plant and equipment
|
$
|
497
|
|
|
$
|
506
|
|
|
$
|
632
|
|
|
|
|
|
|
|
||||||
Depreciation of property, plant and equipment
|
|
|
|
|
|
||||||
Electrical Products
|
$
|
141
|
|
|
$
|
137
|
|
|
$
|
148
|
|
Electrical Systems and Services
|
82
|
|
|
82
|
|
|
90
|
|
|||
Hydraulics
|
64
|
|
|
67
|
|
|
67
|
|
|||
Aerospace
|
27
|
|
|
28
|
|
|
28
|
|
|||
Vehicle
|
109
|
|
|
113
|
|
|
130
|
|
|||
Total
|
423
|
|
|
427
|
|
|
463
|
|
|||
Corporate
|
63
|
|
|
52
|
|
|
51
|
|
|||
Total depreciation of property, plant and equipment
|
$
|
486
|
|
|
$
|
479
|
|
|
$
|
514
|
|
|
2016
|
|
2015
|
|
2014
|
||||||
Net sales
|
|
|
|
|
|
||||||
United States
|
$
|
10,937
|
|
|
$
|
11,396
|
|
|
$
|
11,701
|
|
Canada
|
898
|
|
|
969
|
|
|
1,113
|
|
|||
Latin America
|
1,448
|
|
|
1,726
|
|
|
1,988
|
|
|||
Europe
|
4,228
|
|
|
4,379
|
|
|
5,074
|
|
|||
Asia Pacific
|
2,236
|
|
|
2,385
|
|
|
2,676
|
|
|||
Total
|
$
|
19,747
|
|
|
$
|
20,855
|
|
|
$
|
22,552
|
|
|
|
|
|
|
|
||||||
Long-lived assets
|
|
|
|
|
|
||||||
United States
|
$
|
1,924
|
|
|
$
|
1,982
|
|
|
$
|
1,988
|
|
Canada
|
19
|
|
|
19
|
|
|
25
|
|
|||
Latin America
|
281
|
|
|
243
|
|
|
306
|
|
|||
Europe
|
681
|
|
|
734
|
|
|
799
|
|
|||
Asia Pacific
|
538
|
|
|
587
|
|
|
632
|
|
|||
Total
|
$
|
3,443
|
|
|
$
|
3,565
|
|
|
$
|
3,750
|
|
Note 16.
|
CONDENSED CONSOLIDATING FINANCIAL STATEMENTS
|
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
|
|
|
$
|
6,351
|
|
|
$
|
11,961
|
|
|
$
|
(5,012
|
)
|
|
$
|
19,747
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cost of products sold
|
—
|
|
|
5,078
|
|
|
4,686
|
|
|
8,649
|
|
|
(5,013
|
)
|
|
13,400
|
|
||||||
Selling and administrative expense
|
141
|
|
|
1,155
|
|
|
760
|
|
|
1,449
|
|
|
—
|
|
|
3,505
|
|
||||||
Research and development expense
|
—
|
|
|
235
|
|
|
186
|
|
|
168
|
|
|
—
|
|
|
589
|
|
||||||
Interest expense (income) - net
|
—
|
|
|
230
|
|
|
18
|
|
|
(14
|
)
|
|
(1
|
)
|
|
233
|
|
||||||
Other expense (income) - net
|
(35
|
)
|
|
(48
|
)
|
|
42
|
|
|
(66
|
)
|
|
—
|
|
|
(107
|
)
|
||||||
Equity in loss (earnings) of
subsidiaries, net of tax
|
(2,439
|
)
|
|
(741
|
)
|
|
(3,322
|
)
|
|
(898
|
)
|
|
7,400
|
|
|
—
|
|
||||||
Intercompany expense (income) - net
|
411
|
|
|
(157
|
)
|
|
1,230
|
|
|
(1,484
|
)
|
|
—
|
|
|
—
|
|
||||||
Income (loss) before income taxes
|
1,922
|
|
|
695
|
|
|
2,751
|
|
|
4,157
|
|
|
(7,398
|
)
|
|
2,127
|
|
||||||
Income tax expense (benefit)
|
—
|
|
|
34
|
|
|
28
|
|
|
139
|
|
|
1
|
|
|
202
|
|
||||||
Net income (loss)
|
1,922
|
|
|
661
|
|
|
2,723
|
|
|
4,018
|
|
|
(7,399
|
)
|
|
1,925
|
|
||||||
Less net loss (income) for
noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
(5
|
)
|
|
2
|
|
|
(3
|
)
|
||||||
Net income (loss) attributable to
Eaton ordinary shareholders
|
$
|
1,922
|
|
|
$
|
661
|
|
|
$
|
2,723
|
|
|
$
|
4,013
|
|
|
$
|
(7,397
|
)
|
|
$
|
1,922
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Other comprehensive income (loss)
|
(585
|
)
|
|
53
|
|
|
(567
|
)
|
|
(803
|
)
|
|
1,317
|
|
|
(585
|
)
|
||||||
Total comprehensive income (loss) attributable to Eaton
ordinary shareholders
|
$
|
1,337
|
|
|
$
|
714
|
|
|
$
|
2,156
|
|
|
$
|
3,210
|
|
|
$
|
(6,080
|
)
|
|
$
|
1,337
|
|
CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME
YEAR ENDED DECEMBER 31, 2015
|
|||||||||||||||||||||||
|
Eaton
Corporation
plc
|
|
Eaton
Corporation
|
|
Guarantors
|
|
Other
subsidiaries
|
|
Consolidating
adjustments
|
|
Total
|
||||||||||||
Net sales
|
$
|
—
|
|
|
$
|
6,925
|
|
|
$
|
6,659
|
|
|
$
|
12,533
|
|
|
$
|
(5,262
|
)
|
|
$
|
20,855
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cost of products sold
|
—
|
|
|
5,508
|
|
|
5,036
|
|
|
8,981
|
|
|
(5,233
|
)
|
|
14,292
|
|
||||||
Selling and administrative expense
|
141
|
|
|
1,223
|
|
|
738
|
|
|
1,494
|
|
|
—
|
|
|
3,596
|
|
||||||
Research and development expense
|
—
|
|
|
266
|
|
|
197
|
|
|
162
|
|
|
—
|
|
|
625
|
|
||||||
Interest expense (income) - net
|
—
|
|
|
222
|
|
|
21
|
|
|
(13
|
)
|
|
2
|
|
|
232
|
|
||||||
Other expense (income) - net
|
—
|
|
|
—
|
|
|
24
|
|
|
(59
|
)
|
|
—
|
|
|
(35
|
)
|
||||||
Equity in loss (earnings) of
subsidiaries, net of tax
|
(2,456
|
)
|
|
(789
|
)
|
|
(3,285
|
)
|
|
(689
|
)
|
|
7,219
|
|
|
—
|
|
||||||
Intercompany expense (income) - net
|
336
|
|
|
(425
|
)
|
|
1,218
|
|
|
(1,129
|
)
|
|
—
|
|
|
—
|
|
||||||
Income (loss) before income taxes
|
1,979
|
|
|
920
|
|
|
2,710
|
|
|
3,786
|
|
|
(7,250
|
)
|
|
2,145
|
|
||||||
Income tax expense (benefit)
|
—
|
|
|
103
|
|
|
(69
|
)
|
|
141
|
|
|
(11
|
)
|
|
164
|
|
||||||
Net income (loss)
|
1,979
|
|
|
817
|
|
|
2,779
|
|
|
3,645
|
|
|
(7,239
|
)
|
|
1,981
|
|
||||||
Less net loss (income) for
noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
(3
|
)
|
|
1
|
|
|
(2
|
)
|
||||||
Net income (loss) attributable to
Eaton ordinary shareholders
|
$
|
1,979
|
|
|
$
|
817
|
|
|
$
|
2,779
|
|
|
$
|
3,642
|
|
|
$
|
(7,238
|
)
|
|
$
|
1,979
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Other comprehensive income (loss)
|
(964
|
)
|
|
6
|
|
|
(952
|
)
|
|
(1,179
|
)
|
|
2,125
|
|
|
(964
|
)
|
||||||
Total comprehensive income (loss) attributable to Eaton
ordinary shareholders
|
$
|
1,015
|
|
|
$
|
823
|
|
|
$
|
1,827
|
|
|
$
|
2,463
|
|
|
$
|
(5,113
|
)
|
|
$
|
1,015
|
|
CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME
YEAR ENDED DECEMBER 31, 2014
|
|||||||||||||||||||||||
|
Eaton
Corporation
plc
|
|
Eaton
Corporation
|
|
Guarantors
|
|
Other
subsidiaries
|
|
Consolidating
adjustments
|
|
Total
|
||||||||||||
Net sales
|
$
|
—
|
|
|
$
|
6,990
|
|
|
$
|
6,885
|
|
|
$
|
13,521
|
|
|
$
|
(4,844
|
)
|
|
$
|
22,552
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cost of products sold
|
—
|
|
|
5,519
|
|
|
5,075
|
|
|
9,882
|
|
|
(4,830
|
)
|
|
15,646
|
|
||||||
Selling and administrative expense
|
171
|
|
|
1,246
|
|
|
742
|
|
|
1,651
|
|
|
—
|
|
|
3,810
|
|
||||||
Litigation settlements
|
—
|
|
|
644
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
644
|
|
||||||
Research and development expense
|
—
|
|
|
240
|
|
|
202
|
|
|
205
|
|
|
—
|
|
|
647
|
|
||||||
Interest expense (income) - net
|
—
|
|
|
225
|
|
|
25
|
|
|
(29
|
)
|
|
6
|
|
|
227
|
|
||||||
Other expense (income) - net
|
—
|
|
|
(17
|
)
|
|
(81
|
)
|
|
(85
|
)
|
|
—
|
|
|
(183
|
)
|
||||||
Equity in loss (earnings) of
subsidiaries, net of tax
|
(2,191
|
)
|
|
(657
|
)
|
|
(2,660
|
)
|
|
(295
|
)
|
|
5,803
|
|
|
—
|
|
||||||
Intercompany expense (income) - net
|
227
|
|
|
(263
|
)
|
|
855
|
|
|
(819
|
)
|
|
—
|
|
|
—
|
|
||||||
Income (loss) before income taxes
|
1,793
|
|
|
53
|
|
|
2,727
|
|
|
3,011
|
|
|
(5,823
|
)
|
|
1,761
|
|
||||||
Income tax expense (benefit)
|
—
|
|
|
(100
|
)
|
|
79
|
|
|
(14
|
)
|
|
(7
|
)
|
|
(42
|
)
|
||||||
Net income (loss)
|
1,793
|
|
|
153
|
|
|
2,648
|
|
|
3,025
|
|
|
(5,816
|
)
|
|
1,803
|
|
||||||
Less net loss (income) for
noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
(8
|
)
|
|
(2
|
)
|
|
(10
|
)
|
||||||
Net income (loss) attributable to
Eaton ordinary shareholders
|
$
|
1,793
|
|
|
$
|
153
|
|
|
$
|
2,648
|
|
|
$
|
3,017
|
|
|
$
|
(5,818
|
)
|
|
$
|
1,793
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Other comprehensive income (loss)
|
(1,339
|
)
|
|
(191
|
)
|
|
(1,370
|
)
|
|
(1,646
|
)
|
|
3,207
|
|
|
(1,339
|
)
|
||||||
Total comprehensive income (loss) attributable to Eaton
ordinary shareholders
|
$
|
454
|
|
|
$
|
(38
|
)
|
|
$
|
1,278
|
|
|
$
|
1,371
|
|
|
$
|
(2,611
|
)
|
|
$
|
454
|
|
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
|
|
|
12,516
|
|
|
(131,992
|
)
|
|
—
|
|
||||||
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
|
|
|
$
|
86,856
|
|
|
$
|
(207,697
|
)
|
|
$
|
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
|
|
|
80,224
|
|
|
(132,050
|
)
|
|
14,897
|
|
||||||
Noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
38
|
|
|
6
|
|
|
44
|
|
||||||
Total equity
|
14,897
|
|
|
11,439
|
|
|
40,387
|
|
|
80,262
|
|
|
(132,044
|
)
|
|
14,941
|
|
||||||
Total liabilities and equity
|
$
|
32,801
|
|
|
$
|
27,125
|
|
|
$
|
91,334
|
|
|
$
|
86,856
|
|
|
$
|
(207,697
|
)
|
|
$
|
30,419
|
|
CONDENSED CONSOLIDATING BALANCE SHEETS
DECEMBER 31, 2015
|
|||||||||||||||||||||||
|
Eaton
Corporation
plc
|
|
Eaton
Corporation
|
|
Guarantors
|
|
Other
subsidiaries
|
|
Consolidating
adjustments
|
|
Total
|
||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Current assets
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cash
|
$
|
—
|
|
|
$
|
26
|
|
|
$
|
7
|
|
|
$
|
235
|
|
|
$
|
—
|
|
|
$
|
268
|
|
Short-term investments
|
—
|
|
|
—
|
|
|
2
|
|
|
175
|
|
|
—
|
|
|
177
|
|
||||||
Accounts receivable - net
|
—
|
|
|
512
|
|
|
1,036
|
|
|
1,931
|
|
|
—
|
|
|
3,479
|
|
||||||
Intercompany accounts receivable
|
1
|
|
|
842
|
|
|
3,903
|
|
|
3,033
|
|
|
(7,779
|
)
|
|
—
|
|
||||||
Inventory
|
—
|
|
|
357
|
|
|
658
|
|
|
1,388
|
|
|
(80
|
)
|
|
2,323
|
|
||||||
Prepaid expenses and other
current assets
|
—
|
|
|
77
|
|
|
41
|
|
|
228
|
|
|
23
|
|
|
369
|
|
||||||
Total current assets
|
1
|
|
|
1,814
|
|
|
5,647
|
|
|
6,990
|
|
|
(7,836
|
)
|
|
6,616
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Property, plant and equipment - net
|
—
|
|
|
930
|
|
|
751
|
|
|
1,884
|
|
|
—
|
|
|
3,565
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Other noncurrent assets
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Goodwill
|
—
|
|
|
1,355
|
|
|
6,295
|
|
|
5,829
|
|
|
—
|
|
|
13,479
|
|
||||||
Other intangible assets
|
—
|
|
|
182
|
|
|
3,634
|
|
|
2,198
|
|
|
—
|
|
|
6,014
|
|
||||||
Deferred income taxes
|
—
|
|
|
1,016
|
|
|
—
|
|
|
218
|
|
|
(872
|
)
|
|
362
|
|
||||||
Investment in subsidiaries
|
29,627
|
|
|
12,931
|
|
|
60,216
|
|
|
9,968
|
|
|
(112,742
|
)
|
|
—
|
|
||||||
Intercompany loans receivable
|
—
|
|
|
8,641
|
|
|
1,573
|
|
|
44,835
|
|
|
(55,049
|
)
|
|
—
|
|
||||||
Other assets
|
—
|
|
|
492
|
|
|
122
|
|
|
346
|
|
|
—
|
|
|
960
|
|
||||||
Total assets
|
$
|
29,628
|
|
|
$
|
27,361
|
|
|
$
|
78,238
|
|
|
$
|
72,268
|
|
|
$
|
(176,499
|
)
|
|
$
|
30,996
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Liabilities and shareholders’
equity
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Current liabilities
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Short-term debt
|
$
|
—
|
|
|
$
|
408
|
|
|
$
|
—
|
|
|
$
|
18
|
|
|
$
|
—
|
|
|
$
|
426
|
|
Current portion of long-term debt
|
—
|
|
|
1
|
|
|
240
|
|
|
1
|
|
|
—
|
|
|
242
|
|
||||||
Accounts payable
|
—
|
|
|
392
|
|
|
266
|
|
|
1,100
|
|
|
—
|
|
|
1,758
|
|
||||||
Intercompany accounts payable
|
219
|
|
|
4,009
|
|
|
2,380
|
|
|
1,171
|
|
|
(7,779
|
)
|
|
—
|
|
||||||
Accrued compensation
|
—
|
|
|
77
|
|
|
53
|
|
|
236
|
|
|
—
|
|
|
366
|
|
||||||
Other current liabilities
|
1
|
|
|
644
|
|
|
319
|
|
|
874
|
|
|
(5
|
)
|
|
1,833
|
|
||||||
Total current liabilities
|
220
|
|
|
5,531
|
|
|
3,258
|
|
|
3,400
|
|
|
(7,784
|
)
|
|
4,625
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Noncurrent liabilities
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Long-term debt
|
—
|
|
|
7,053
|
|
|
675
|
|
|
17
|
|
|
1
|
|
|
7,746
|
|
||||||
Pension liabilities
|
—
|
|
|
639
|
|
|
165
|
|
|
782
|
|
|
—
|
|
|
1,586
|
|
||||||
Other postretirement benefits
liabilities
|
—
|
|
|
245
|
|
|
118
|
|
|
77
|
|
|
—
|
|
|
440
|
|
||||||
Deferred income taxes
|
—
|
|
|
—
|
|
|
818
|
|
|
444
|
|
|
(872
|
)
|
|
390
|
|
||||||
Intercompany loans payable
|
14,222
|
|
|
2,962
|
|
|
36,436
|
|
|
1,429
|
|
|
(55,049
|
)
|
|
—
|
|
||||||
Other noncurrent liabilities
|
—
|
|
|
346
|
|
|
200
|
|
|
432
|
|
|
—
|
|
|
978
|
|
||||||
Total noncurrent liabilities
|
14,222
|
|
|
11,245
|
|
|
38,412
|
|
|
3,181
|
|
|
(55,920
|
)
|
|
11,140
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Shareholders’ equity
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Eaton shareholders’ equity
|
15,186
|
|
|
10,585
|
|
|
36,568
|
|
|
65,650
|
|
|
(112,803
|
)
|
|
15,186
|
|
||||||
Noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
37
|
|
|
8
|
|
|
45
|
|
||||||
Total equity
|
15,186
|
|
|
10,585
|
|
|
36,568
|
|
|
65,687
|
|
|
(112,795
|
)
|
|
15,231
|
|
||||||
Total liabilities and equity
|
$
|
29,628
|
|
|
$
|
27,361
|
|
|
$
|
78,238
|
|
|
$
|
72,268
|
|
|
$
|
(176,499
|
)
|
|
$
|
30,996
|
|
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
|
)
|
|
$
|
(215
|
)
|
|
$
|
(236
|
)
|
|
$
|
3,256
|
|
|
$
|
—
|
|
|
$
|
2,552
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Investing activities
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Capital expenditures for property,
plant and equipment
|
—
|
|
|
(92
|
)
|
|
(114
|
)
|
|
(291
|
)
|
|
—
|
|
|
(497
|
)
|
||||||
Cash received from (paid for)
acquisitions of businesses, net of
cash acquired
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
1
|
|
||||||
Sales (purchases) of short-term investment - net
|
—
|
|
|
—
|
|
|
2
|
|
|
(42
|
)
|
|
—
|
|
|
(40
|
)
|
||||||
Investments in affiliates
|
(1,250
|
)
|
|
—
|
|
|
(120
|
)
|
|
(1,370
|
)
|
|
2,740
|
|
|
—
|
|
||||||
Return of investments in affiliates
|
—
|
|
|
—
|
|
|
47
|
|
|
—
|
|
|
(47
|
)
|
|
—
|
|
||||||
Loans to affiliates
|
—
|
|
|
(337
|
)
|
|
(655
|
)
|
|
(8,208
|
)
|
|
9,200
|
|
|
—
|
|
||||||
Repayments of loans from affiliates
|
—
|
|
|
1,293
|
|
|
—
|
|
|
5,893
|
|
|
(7,186
|
)
|
|
—
|
|
||||||
Other - net
|
—
|
|
|
(9
|
)
|
|
41
|
|
|
(25
|
)
|
|
—
|
|
|
7
|
|
||||||
Net cash provided by (used in)
investing activities
|
(1,250
|
)
|
|
855
|
|
|
(798
|
)
|
|
(4,043
|
)
|
|
4,707
|
|
|
(529
|
)
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Financing activities
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Proceeds from borrowings
|
—
|
|
|
21
|
|
|
610
|
|
|
—
|
|
|
—
|
|
|
631
|
|
||||||
Payments on borrowings
|
—
|
|
|
(408
|
)
|
|
(231
|
)
|
|
(14
|
)
|
|
—
|
|
|
(653
|
)
|
||||||
Proceeds from borrowings from
affiliates
|
3,843
|
|
|
4,045
|
|
|
1,120
|
|
|
192
|
|
|
(9,200
|
)
|
|
—
|
|
||||||
Payments on borrowings from
affiliates
|
(646
|
)
|
|
(4,655
|
)
|
|
(1,844
|
)
|
|
(41
|
)
|
|
7,186
|
|
|
—
|
|
||||||
Capital contribution from affiliates
|
—
|
|
|
—
|
|
|
1,370
|
|
|
1,370
|
|
|
(2,740
|
)
|
|
—
|
|
||||||
Return of investments in affiliates
|
—
|
|
|
—
|
|
|
—
|
|
|
(47
|
)
|
|
47
|
|
|
—
|
|
||||||
Other intercompany financing
activities
|
—
|
|
|
422
|
|
|
10
|
|
|
(432
|
)
|
|
—
|
|
|
—
|
|
||||||
Cash dividends paid
|
(1,037
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,037
|
)
|
||||||
Cash dividends paid to affiliates
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Exercise of employee stock options
|
74
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
74
|
|
||||||
Repurchase of shares
|
(730
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(730
|
)
|
||||||
Excess tax benefit from equity-based
compensation
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
||||||
Other - net
|
—
|
|
|
—
|
|
|
(4
|
)
|
|
(2
|
)
|
|
—
|
|
|
(6
|
)
|
||||||
Net cash provided by (used in)
financing activities
|
1,504
|
|
|
(574
|
)
|
|
1,031
|
|
|
1,026
|
|
|
(4,707
|
)
|
|
(1,720
|
)
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Effect of currency on cash
|
—
|
|
|
—
|
|
|
—
|
|
|
(28
|
)
|
|
—
|
|
|
(28
|
)
|
||||||
Total increase (decrease) in cash
|
1
|
|
|
66
|
|
|
(3
|
)
|
|
211
|
|
|
—
|
|
|
275
|
|
||||||
Cash at the beginning of the period
|
—
|
|
|
26
|
|
|
7
|
|
|
235
|
|
|
—
|
|
|
268
|
|
||||||
Cash at the end of the period
|
$
|
1
|
|
|
$
|
92
|
|
|
$
|
4
|
|
|
$
|
446
|
|
|
$
|
—
|
|
|
$
|
543
|
|
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS
DECEMBER 31, 2015
|
|||||||||||||||||||||||
|
Eaton
Corporation
plc
|
|
Eaton
Corporation
|
|
Guarantors
|
|
Other
subsidiaries
|
|
Consolidating
adjustments
|
|
Total
|
||||||||||||
Net cash provided by (used in)
operating activities
|
$
|
(137
|
)
|
|
$
|
(46
|
)
|
|
$
|
(288
|
)
|
|
$
|
2,846
|
|
|
$
|
(4
|
)
|
|
$
|
2,371
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Investing activities
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Capital expenditures for property,
plant and equipment
|
—
|
|
|
(94
|
)
|
|
(146
|
)
|
|
(266
|
)
|
|
—
|
|
|
(506
|
)
|
||||||
Cash received from (paid for)
acquisitions of businesses, net of
cash acquired
|
—
|
|
|
—
|
|
|
(35
|
)
|
|
(37
|
)
|
|
—
|
|
|
(72
|
)
|
||||||
Sales (purchases) of short-term investments - net
|
—
|
|
|
—
|
|
|
(2
|
)
|
|
39
|
|
|
—
|
|
|
37
|
|
||||||
Investments in affiliates
|
(1,482
|
)
|
|
—
|
|
|
(1,176
|
)
|
|
(1,482
|
)
|
|
4,140
|
|
|
—
|
|
||||||
Loans to affiliates
|
—
|
|
|
(1,235
|
)
|
|
(39
|
)
|
|
(10,608
|
)
|
|
11,882
|
|
|
—
|
|
||||||
Repayments of loans from affiliates
|
—
|
|
|
342
|
|
|
359
|
|
|
7,148
|
|
|
(7,849
|
)
|
|
—
|
|
||||||
Proceeds from the sales
of businesses
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
1
|
|
||||||
Other - net
|
—
|
|
|
(50
|
)
|
|
47
|
|
|
(32
|
)
|
|
—
|
|
|
(35
|
)
|
||||||
Net cash provided by (used in)
investing activities
|
(1,482
|
)
|
|
(1,037
|
)
|
|
(992
|
)
|
|
(5,237
|
)
|
|
8,173
|
|
|
(575
|
)
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Financing activities
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Proceeds from borrowings
|
—
|
|
|
408
|
|
|
—
|
|
|
17
|
|
|
—
|
|
|
425
|
|
||||||
Payments on borrowings
|
—
|
|
|
(724
|
)
|
|
(301
|
)
|
|
(2
|
)
|
|
—
|
|
|
(1,027
|
)
|
||||||
Proceeds from borrowings from
affiliates
|
3,322
|
|
|
6,885
|
|
|
997
|
|
|
678
|
|
|
(11,882
|
)
|
|
—
|
|
||||||
Payments on borrowings from
affiliates
|
(48
|
)
|
|
(6,122
|
)
|
|
(1,282
|
)
|
|
(397
|
)
|
|
7,849
|
|
|
—
|
|
||||||
Capital contribution from affiliates
|
—
|
|
|
1,176
|
|
|
1,482
|
|
|
1,482
|
|
|
(4,140
|
)
|
|
—
|
|
||||||
Other intercompany financing
activities
|
—
|
|
|
(688
|
)
|
|
378
|
|
|
310
|
|
|
—
|
|
|
—
|
|
||||||
Cash dividends paid
|
(1,026
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,026
|
)
|
||||||
Cash dividends received from affiliates
|
—
|
|
|
—
|
|
|
—
|
|
|
(4
|
)
|
|
4
|
|
|
—
|
|
||||||
Exercise of employee stock options
|
52
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
52
|
|
||||||
Repurchase of shares
|
(682
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(682
|
)
|
||||||
Excess tax benefit from equity-based
compensation
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
||||||
Other - net
|
—
|
|
|
—
|
|
|
—
|
|
|
(10
|
)
|
|
—
|
|
|
(10
|
)
|
||||||
Net cash provided by (used in)
financing activities
|
1,618
|
|
|
936
|
|
|
1,274
|
|
|
2,074
|
|
|
(8,169
|
)
|
|
(2,267
|
)
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Effect of currency on cash
|
—
|
|
|
—
|
|
|
—
|
|
|
(42
|
)
|
|
—
|
|
|
(42
|
)
|
||||||
Total increase (decrease) in cash
|
(1
|
)
|
|
(147
|
)
|
|
(6
|
)
|
|
(359
|
)
|
|
—
|
|
|
(513
|
)
|
||||||
Cash at the beginning of the period
|
1
|
|
|
173
|
|
|
13
|
|
|
594
|
|
|
—
|
|
|
781
|
|
||||||
Cash at the end of the period
|
$
|
—
|
|
|
$
|
26
|
|
|
$
|
7
|
|
|
$
|
235
|
|
|
$
|
—
|
|
|
$
|
268
|
|
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS
DECEMBER 31, 2014
|
|||||||||||||||||||||||
|
Eaton
Corporation
plc
|
|
Eaton
Corporation
|
|
Guarantors
|
|
Other
subsidiaries
|
|
Consolidating
adjustments
|
|
Total
|
||||||||||||
Net cash provided by (used in)
operating activities
|
$
|
(93
|
)
|
|
$
|
(411
|
)
|
|
$
|
(218
|
)
|
|
$
|
2,568
|
|
|
$
|
32
|
|
|
$
|
1,878
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Investing activities
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Capital expenditures for property,
plant and equipment
|
—
|
|
|
(127
|
)
|
|
(168
|
)
|
|
(337
|
)
|
|
—
|
|
|
(632
|
)
|
||||||
Cash received from (paid for)
acquisitions of businesses, net of
cash acquired
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
2
|
|
||||||
Sales (purchases) of short-term
investments - net
|
—
|
|
|
—
|
|
|
133
|
|
|
389
|
|
|
—
|
|
|
522
|
|
||||||
Investments in affiliates
|
(753
|
)
|
|
—
|
|
|
—
|
|
|
(753
|
)
|
|
1,506
|
|
|
—
|
|
||||||
Loans to affiliates
|
—
|
|
|
(354
|
)
|
|
(162
|
)
|
|
(10,546
|
)
|
|
11,062
|
|
|
—
|
|
||||||
Repayments of loans from affiliates
|
—
|
|
|
978
|
|
|
212
|
|
|
8,451
|
|
|
(9,641
|
)
|
|
—
|
|
||||||
Proceeds from the sales of
businesses
|
—
|
|
|
93
|
|
|
175
|
|
|
14
|
|
|
—
|
|
|
282
|
|
||||||
Other - net
|
—
|
|
|
(47
|
)
|
|
44
|
|
|
(28
|
)
|
|
—
|
|
|
(31
|
)
|
||||||
Net cash provided by (used in)
investing activities
|
(753
|
)
|
|
543
|
|
|
234
|
|
|
(2,808
|
)
|
|
2,927
|
|
|
143
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Financing activities
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Proceeds from borrowings
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Payments on borrowings
|
—
|
|
|
(553
|
)
|
|
(1
|
)
|
|
(28
|
)
|
|
—
|
|
|
(582
|
)
|
||||||
Proceeds from borrowings from
affiliates
|
2,628
|
|
|
7,599
|
|
|
808
|
|
|
27
|
|
|
(11,062
|
)
|
|
—
|
|
||||||
Payments on borrowings from
affiliates
|
(476
|
)
|
|
(6,907
|
)
|
|
(1,875
|
)
|
|
(383
|
)
|
|
9,641
|
|
|
—
|
|
||||||
Issuance of stock to affiliates
|
—
|
|
|
—
|
|
|
753
|
|
|
753
|
|
|
(1,506
|
)
|
|
—
|
|
||||||
Other intercompany financing
activities
|
217
|
|
|
(169
|
)
|
|
302
|
|
|
(350
|
)
|
|
—
|
|
|
—
|
|
||||||
Cash dividends paid
|
(929
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(929
|
)
|
||||||
Cash dividends paid to affiliates
|
—
|
|
|
—
|
|
|
—
|
|
|
32
|
|
|
(32
|
)
|
|
—
|
|
||||||
Exercise of employee stock options
|
54
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
54
|
|
||||||
Repurchase of shares
|
(650
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(650
|
)
|
||||||
Excess tax benefit from equity-based
compensation
|
—
|
|
|
20
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
20
|
|
||||||
Other - net
|
—
|
|
|
—
|
|
|
—
|
|
|
(43
|
)
|
|
—
|
|
|
(43
|
)
|
||||||
Net cash provided by (used in)
financing activities
|
844
|
|
|
(10
|
)
|
|
(13
|
)
|
|
8
|
|
|
(2,959
|
)
|
|
(2,130
|
)
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Effect of currency on cash
|
—
|
|
|
—
|
|
|
—
|
|
|
(25
|
)
|
|
—
|
|
|
(25
|
)
|
||||||
Total increase (decrease) in cash
|
(2
|
)
|
|
122
|
|
|
3
|
|
|
(257
|
)
|
|
—
|
|
|
(134
|
)
|
||||||
Cash at the beginning of the period
|
3
|
|
|
51
|
|
|
10
|
|
|
851
|
|
|
—
|
|
|
915
|
|
||||||
Cash at the end of the period
|
$
|
1
|
|
|
$
|
173
|
|
|
$
|
13
|
|
|
$
|
594
|
|
|
$
|
—
|
|
|
$
|
781
|
|
|
2016
|
|
2015
|
|
2014
|
||||||
Net sales
|
$
|
19,747
|
|
|
$
|
20,855
|
|
|
$
|
22,552
|
|
Net income attributable to Eaton ordinary shareholders
|
1,922
|
|
|
1,979
|
|
|
1,793
|
|
|||
Net income per share attributable to Eaton ordinary shareholders - diluted
|
$
|
4.21
|
|
|
$
|
4.23
|
|
|
$
|
3.76
|
|
|
2016
|
|
Change
from 2015
|
|
2015
|
|
Change
from 2014
|
|
2014
|
||||||||
Net sales
|
$
|
19,747
|
|
|
(5
|
)%
|
|
$
|
20,855
|
|
|
(8
|
)%
|
|
$
|
22,552
|
|
Gross profit
|
6,347
|
|
|
(3
|
)%
|
|
6,563
|
|
|
(5
|
)%
|
|
6,906
|
|
|||
Percent of net sales
|
32.1
|
%
|
|
|
|
31.5
|
%
|
|
|
|
30.6
|
%
|
|||||
Income before income taxes
|
2,127
|
|
|
(1
|
)%
|
|
2,145
|
|
|
22
|
%
|
|
1,761
|
|
|||
Net income
|
1,925
|
|
|
(3
|
)%
|
|
1,981
|
|
|
10
|
%
|
|
1,803
|
|
|||
Less net income for noncontrolling interests
|
(3
|
)
|
|
|
|
(2
|
)
|
|
|
|
(10
|
)
|
|||||
Net income attributable to Eaton ordinary shareholders
|
1,922
|
|
|
(3
|
)%
|
|
1,979
|
|
|
10
|
%
|
|
1,793
|
|
|||
Excluding acquisition integration charges,
after-tax (Note 3)
|
3
|
|
|
|
|
31
|
|
|
|
|
102
|
|
|||||
Operating earnings
|
$
|
1,925
|
|
|
(4
|
)%
|
|
$
|
2,010
|
|
|
6
|
%
|
|
$
|
1,895
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Net income per share attributable to Eaton ordinary shareholders - diluted
|
$
|
4.21
|
|
|
—
|
%
|
|
$
|
4.23
|
|
|
13
|
%
|
|
$
|
3.76
|
|
Excluding per share impact of acquisition integration charges, after-tax (Note 3)
|
0.01
|
|
|
|
|
0.07
|
|
|
|
|
0.21
|
|
|||||
Operating earnings per ordinary share
|
$
|
4.22
|
|
|
(2
|
)%
|
|
$
|
4.30
|
|
|
8
|
%
|
|
$
|
3.97
|
|
|
2016
|
|
Change
from 2015 |
|
2015
|
|
Change
from 2014 |
|
2014
|
||||||||
Net sales
|
$
|
6,957
|
|
|
—
|
%
|
|
$
|
6,976
|
|
|
(4
|
)%
|
|
$
|
7,254
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Operating profit
|
$
|
1,240
|
|
|
7
|
%
|
|
$
|
1,156
|
|
|
(2
|
)%
|
|
$
|
1,184
|
|
Operating margin
|
17.8
|
%
|
|
|
|
16.6
|
%
|
|
|
|
16.3
|
%
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||
Acquisition integration charges
|
$
|
3
|
|
|
|
|
$
|
25
|
|
|
|
|
$
|
66
|
|
||
|
|
|
|
|
|
|
|
|
|
||||||||
Before acquisition integration charges
|
|
|
|
|
|
|
|
|
|
||||||||
Operating profit
|
$
|
1,243
|
|
|
5
|
%
|
|
$
|
1,181
|
|
|
(6
|
)%
|
|
$
|
1,250
|
|
Operating margin
|
17.9
|
%
|
|
|
|
16.9
|
%
|
|
|
|
17.2
|
%
|
|
2016
|
|
Change
from 2015 |
|
2015
|
|
Change
from 2014 |
|
2014
|
||||||||
Net sales
|
$
|
5,662
|
|
|
(5
|
)%
|
|
$
|
5,931
|
|
|
(8
|
)%
|
|
$
|
6,457
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Operating profit
|
$
|
711
|
|
|
(8
|
)%
|
|
$
|
776
|
|
|
(8
|
)%
|
|
$
|
843
|
|
Operating margin
|
12.6
|
%
|
|
|
|
13.1
|
%
|
|
|
|
13.1
|
%
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||
Acquisition integration charges
|
$
|
1
|
|
|
|
|
$
|
15
|
|
|
|
|
$
|
51
|
|
||
|
|
|
|
|
|
|
|
|
|
||||||||
Before acquisition integration charges
|
|
|
|
|
|
|
|
|
|
||||||||
Operating profit
|
$
|
712
|
|
|
(10
|
)%
|
|
$
|
791
|
|
|
(12
|
)%
|
|
$
|
894
|
|
Operating margin
|
12.6
|
%
|
|
|
|
13.3
|
%
|
|
|
|
13.8
|
%
|
|
2016
|
|
Change
from 2015 |
|
2015
|
|
Change
from 2014 |
|
2014
|
||||||||
Net sales
|
$
|
2,222
|
|
|
(10
|
)%
|
|
$
|
2,459
|
|
|
(17
|
)%
|
|
$
|
2,975
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Operating profit
|
$
|
198
|
|
|
(20
|
)%
|
|
$
|
246
|
|
|
(33
|
)%
|
|
$
|
367
|
|
Operating margin
|
8.9
|
%
|
|
|
|
10.0
|
%
|
|
|
|
12.3
|
%
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||
Acquisition integration charges
|
$
|
—
|
|
|
|
|
$
|
2
|
|
|
|
|
$
|
12
|
|
||
|
|
|
|
|
|
|
|
|
|
||||||||
Before acquisition integration charges
|
|
|
|
|
|
|
|
|
|
||||||||
Operating profit
|
$
|
198
|
|
|
(20
|
)%
|
|
$
|
248
|
|
|
(35
|
)%
|
|
$
|
379
|
|
Operating margin
|
8.9
|
%
|
|
|
|
10.1
|
%
|
|
|
|
12.7
|
%
|
|
2016
|
|
Change
from 2015 |
|
2015
|
|
Change
from 2014 |
|
2014
|
||||||||
Net sales
|
$
|
1,753
|
|
|
(3
|
)%
|
|
$
|
1,807
|
|
|
(3
|
)%
|
|
$
|
1,860
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Operating profit
|
$
|
335
|
|
|
8
|
%
|
|
$
|
310
|
|
|
14
|
%
|
|
$
|
273
|
|
Operating margin
|
19.1
|
%
|
|
|
|
17.2
|
%
|
|
|
|
14.7
|
%
|
|
2016
|
|
Change
from 2015 |
|
2015
|
|
Change
from 2014 |
|
2014
|
||||||||
Net sales
|
$
|
3,153
|
|
|
(14
|
)%
|
|
$
|
3,682
|
|
|
(8
|
)%
|
|
$
|
4,006
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Operating profit
|
$
|
474
|
|
|
(27
|
)%
|
|
$
|
645
|
|
|
—
|
%
|
|
$
|
645
|
|
Operating margin
|
15.0
|
%
|
|
|
|
17.5
|
%
|
|
|
|
16.1
|
%
|
|
2016
|
|
Change
from 2015
|
|
2015
|
|
Change
from 2014
|
|
2014
|
||||||||
Litigation settlements
|
$
|
—
|
|
|
NM
|
|
|
$
|
—
|
|
|
NM
|
|
|
$
|
644
|
|
Amortization of intangible assets
|
392
|
|
|
(3
|
)%
|
|
406
|
|
|
(6
|
)%
|
|
431
|
|
|||
Interest expense - net
|
233
|
|
|
—
|
%
|
|
232
|
|
|
2
|
%
|
|
227
|
|
|||
Pension and other postretirement benefits expense
|
60
|
|
|
(54
|
)%
|
|
130
|
|
|
(6
|
)%
|
|
138
|
|
|||
Gain on divestiture of Aerospace businesses
|
—
|
|
|
NM
|
|
|
—
|
|
|
NM
|
|
|
(154
|
)
|
|||
Other corporate expense - net
|
146
|
|
|
(34
|
)%
|
|
220
|
|
|
(17
|
)%
|
|
265
|
|
|||
Total corporate expense
|
$
|
831
|
|
|
(16
|
)%
|
|
$
|
988
|
|
|
(36
|
)%
|
|
$
|
1,551
|
|
Credit Rating Agency (long- /short-term rating)
|
|
Rating
|
|
Outlook
|
Standard & Poor's
|
|
A-/A-2
|
|
Negative outlook
|
Moody's
|
|
Baa1/P-2
|
|
Stable outlook
|
Fitch
|
|
BBB+/F2
|
|
Stable outlook
|
|
2017
|
|
2018
to
2019
|
|
2020
to
2021
|
|
Thereafter
|
|
Total
|
||||||||||
Long-term debt, including current portion
(1)
|
$
|
1,552
|
|
|
$
|
913
|
|
|
$
|
543
|
|
|
$
|
5,169
|
|
|
$
|
8,177
|
|
Interest expense related to long-term debt
|
295
|
|
|
473
|
|
|
415
|
|
|
1,755
|
|
|
2,938
|
|
|||||
Reduction of interest expense from interest rate swap agreements related to long-term debt
|
(44
|
)
|
|
(36
|
)
|
|
(12
|
)
|
|
(58
|
)
|
|
(150
|
)
|
|||||
Operating leases
|
163
|
|
|
212
|
|
|
98
|
|
|
63
|
|
|
536
|
|
|||||
Purchase obligations
|
778
|
|
|
87
|
|
|
4
|
|
|
—
|
|
|
869
|
|
|||||
Other obligations
|
231
|
|
|
15
|
|
|
14
|
|
|
21
|
|
|
281
|
|
|||||
Total
|
$
|
2,975
|
|
|
$
|
1,664
|
|
|
$
|
1,062
|
|
|
$
|
6,950
|
|
|
$
|
12,651
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
(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.
|
(In millions except for per share data)
|
2016
|
|
2015
|
|
2014
|
|
2013
|
|
2012
|
||||||||||
Net sales
|
$
|
19,747
|
|
|
$
|
20,855
|
|
|
$
|
22,552
|
|
|
$
|
22,046
|
|
|
$
|
16,311
|
|
Income before income taxes
|
2,127
|
|
|
2,145
|
|
|
1,761
|
|
|
1,884
|
|
|
1,251
|
|
|||||
Net income
|
1,925
|
|
|
1,981
|
|
|
1,803
|
|
|
1,873
|
|
|
1,220
|
|
|||||
Less net income for noncontrolling interests
|
(3
|
)
|
|
(2
|
)
|
|
(10
|
)
|
|
(12
|
)
|
|
(3
|
)
|
|||||
Net income attributable to Eaton ordinary shareholders
|
$
|
1,922
|
|
|
$
|
1,979
|
|
|
$
|
1,793
|
|
|
$
|
1,861
|
|
|
$
|
1,217
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income per share attributable to Eaton ordinary shareholders
|
|
|
|
|
|
|
|
|
|
||||||||||
Diluted
|
$
|
4.21
|
|
|
$
|
4.23
|
|
|
$
|
3.76
|
|
|
$
|
3.90
|
|
|
$
|
3.46
|
|
Basic
|
4.22
|
|
|
4.25
|
|
|
3.78
|
|
|
3.93
|
|
|
3.54
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Weighted-average number of ordinary shares outstanding
|
|
|
|
|
|
|
|
|
|
||||||||||
Diluted
|
456.5
|
|
|
467.1
|
|
|
476.8
|
|
|
476.7
|
|
|
350.9
|
|
|||||
Basic
|
455.0
|
|
|
465.5
|
|
|
474.1
|
|
|
473.5
|
|
|
347.8
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash dividends declared
per ordinary share
|
$
|
2.28
|
|
|
$
|
2.20
|
|
|
$
|
1.96
|
|
|
$
|
1.68
|
|
|
$
|
1.52
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total assets
(1)
|
$
|
30,419
|
|
|
$
|
30,996
|
|
|
$
|
33,487
|
|
|
$
|
35,442
|
|
|
$
|
35,746
|
|
Long-term debt
(1)
|
6,711
|
|
|
7,746
|
|
|
7,982
|
|
|
8,920
|
|
|
9,711
|
|
|||||
Total debt
(1)
|
8,277
|
|
|
8,414
|
|
|
8,992
|
|
|
9,500
|
|
|
10,772
|
|
|||||
Eaton shareholders' equity
|
14,897
|
|
|
15,186
|
|
|
15,786
|
|
|
16,791
|
|
|
15,113
|
|
|||||
Eaton shareholders' equity
per ordinary share
|
$
|
33.15
|
|
|
$
|
33.10
|
|
|
$
|
33.74
|
|
|
$
|
35.34
|
|
|
$
|
32.11
|
|
Ordinary shares outstanding
|
449.4
|
|
|
458.8
|
|
|
467.9
|
|
|
475.1
|
|
|
470.7
|
|
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 10-Q Report for the three months ended September 30, 2012
|
|
|
|
|
4 (a)
|
Pursuant to Regulation S-K Item 601(b) (4), the Company agrees to furnish to the SEC, upon request, a copy of the instruments defining the rights of holders of its other long-term debt
|
|
|
|
|
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
|
|
|
|
|
(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 Amended 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
|
|
|
|
|
(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)
|
Group Replacement Insurance Plan (GRIP) (effective June 1, 1992) - Incorporated by reference to the Form 10-K Report for the year ended December 31, 1992
|
|
|
|
|
(ii)
|
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
|
|
|
|
|
(jj)
|
Amendment to Excess Benefits Plan - Incorporated by reference to the Form 10-K Report for the year ended December 31, 2012
|
|
|
|
|
(kk)
|
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
|
|
|
|
|
(ll)
|
Amendment to Supplemental Benefits Plan - Incorporated by reference to the Form 10-K Report for the year ended December 31, 2012
|
|
|
|
|
(mm)
|
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
|
|
|
|
|
(nn)
|
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
|
|
|
|
|
(oo)
|
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
|
|
|
|
|
(pp)
|
Eaton Savings Plan 2016 Restatement - Incorporated by reference to the Form 10-K Report for the year ended December 31, 2015
|
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.
|
•
|
If at least 80% but less than 100% of the Goal is achieved, participants will earn 80% of the performance share unit grant.
|
•
|
If 100% or more of the Goal is achieved, participants will earn 100% of the performance share units.
|
•
|
If less than 80% of the Goal is achieved, no shares will be earned and the performance share units will be forfeited.
|
|
|
Year ended December 31
|
||||||||||||||||||
(In millions)
|
|
2016
|
|
2015
|
|
2014
|
|
2013
|
|
2012
|
||||||||||
Income from continuing operations before income taxes and
noncontrolling interests in consolidated subsidiaries
|
|
$
|
2,127
|
|
|
$
|
2,145
|
|
|
$
|
1,761
|
|
|
$
|
1,884
|
|
|
$
|
1,251
|
|
Adjustments
|
|
|
|
|
|
|
|
|
|
|
||||||||||
(Income) loss of equity investees
|
|
(14
|
)
|
|
(11
|
)
|
|
(6
|
)
|
|
2
|
|
|
(2
|
)
|
|||||
Distributed income of equity investees
|
|
9
|
|
|
9
|
|
|
4
|
|
|
77
|
|
|
19
|
|
|||||
Interest expensed
|
|
240
|
|
|
237
|
|
|
250
|
|
|
290
|
|
|
165
|
|
|||||
Amortization of debt issue costs
|
|
7
|
|
|
8
|
|
|
9
|
|
|
10
|
|
|
74
|
|
|||||
Estimated portion of rent expense representing interest
|
|
73
|
|
|
75
|
|
|
81
|
|
|
80
|
|
|
66
|
|
|||||
Amortization of capitalized interest
|
|
12
|
|
|
10
|
|
|
14
|
|
|
13
|
|
|
12
|
|
|||||
Adjusted income from continuing operations before
income taxes
|
|
$
|
2,454
|
|
|
$
|
2,473
|
|
|
$
|
2,113
|
|
|
$
|
2,356
|
|
|
$
|
1,585
|
|
Fixed charges
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest expensed
|
|
$
|
240
|
|
|
$
|
237
|
|
|
$
|
250
|
|
|
$
|
290
|
|
|
$
|
165
|
|
Interest capitalized
|
|
12
|
|
|
13
|
|
|
13
|
|
|
11
|
|
|
23
|
|
|||||
Amortization of debt issue costs
|
|
7
|
|
|
8
|
|
|
9
|
|
|
10
|
|
|
74
|
|
|||||
Estimated portion of rent expense representing interest
|
|
73
|
|
|
75
|
|
|
81
|
|
|
80
|
|
|
66
|
|
|||||
Total fixed charges
|
|
$
|
332
|
|
|
$
|
333
|
|
|
$
|
353
|
|
|
$
|
391
|
|
|
$
|
328
|
|
Ratio of earnings to fixed charges
|
|
7.39
|
|
|
7.43
|
|
|
5.99
|
|
|
6.03
|
|
|
4.83
|
|
Consolidated Subsidiaries (A)
|
|
Where Organized
|
Illumination Management Solutions, Inc.
|
|
California
|
Eaton Energy Solutions, Inc.
|
|
Colorado
|
Aeroquip International Inc.
|
|
Delaware
|
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 Asia Investments Corporation
|
|
Delaware
|
Eaton Electric Holdings LLC
|
|
Delaware
|
Eaton Holding International LLC
|
|
Delaware
|
Eaton Hydraulics LLC
|
|
Delaware
|
Eaton Industrial Corporation
|
|
Delaware
|
Eaton Industries (Philippines), LLC
|
|
Delaware
|
Eaton International Corporation
|
|
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
|
Consolidated Subsidiaries (A)
|
|
Where Organized
|
Intelligent Switchgear Organization LLC
|
|
Delaware
|
McGraw-Edison Development Corporation
|
|
Delaware
|
MTL Instruments LLC
|
|
Delaware
|
MTL Partners II, Inc.
|
|
Delaware
|
MTL Partners, Inc.
|
|
Delaware
|
PKL, LLC
|
|
Delaware
|
Standard Automation & Control LP
|
|
Delaware
|
U.S. Engine Valve Company
|
|
Delaware
|
Vickers International Inc.
|
|
Delaware
|
Viking Electronics, Inc.
|
|
Delaware
|
Wright Line Holding, Inc.
|
|
Delaware
|
Wright Line LLC
|
|
Delaware
|
Azonix Corporation
|
|
Massachusetts
|
WPI-Boston Division, Inc.
|
|
Massachusetts
|
Eaton Ann Arbor LLC
|
|
Michigan
|
Cannon Technologies, Inc.
|
|
Minnesota
|
Cooper Wheelock, Inc.
|
|
New Jersey
|
Cooper Wiring Devices, Inc.
|
|
New York
|
Ephesus Lighting, Inc.
|
|
New York
|
Chagrin Highlands III Limited
|
|
Ohio
|
Eaton Aeroquip LLC
|
|
Ohio
|
Eaton CHB LLC
|
|
Ohio
|
Eaton Corporation
|
|
Ohio
|
Eaton Holding II LLC
|
|
Ohio
|
Eaton Holding LLC
|
|
Ohio
|
Eaton Leasing Corporation
|
|
Ohio
|
Eaton US Holdings, Inc.
|
|
Ohio
|
Sure Power, Inc.
|
|
Oregon
|
Eaton Industries (Argentina) S.A.
|
|
Argentina
|
Cooper Electrical Australia Pty. Limited
|
|
Australia
|
Eaton Industries Pty. Ltd.
|
|
Australia
|
Elpro Technologies Pty. Limited
|
|
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
|
Cambridge International Insurance Company Ltd.
|
|
Bermuda
|
Cooper Bermuda Investments Ltd.
|
|
Bermuda
|
Cooper Finance Group Ltd.
|
|
Bermuda
|
Cooper Investment Group Ltd.
|
|
Bermuda
|
Eaton Industries Holdings Ltd.
|
|
Bermuda
|
Saturn Insurance Company Ltd.
|
|
Bermuda
|
Aeroquip do Brasil Ltda.
|
|
Brazil
|
Blinda Industria e Comercio Ltda.
|
|
Brazil
|
Bussmann do Brasil Ltda.
|
|
Brazil
|
Consolidated Subsidiaries (A)
|
|
Where Organized
|
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
|
Winner Hydraulics Ltd.
|
|
British Virgin Islands
|
Eaton Industries EOOD
|
|
Bulgaria
|
Aeroquip-Vickers Canada, Inc.
|
|
Canada
|
Cooper Finance (Canada) L.P.
|
|
Canada
|
Cooper Industries (Canada) Inc.
|
|
Canada
|
Cooper Industries (Electrical) Inc.
|
|
Canada
|
Cooper Industries Holdings (Canada) Inc.
|
|
Canada
|
Cyme International T & D Inc.
|
|
Canada
|
Eaton ETN Offshore Company
|
|
Canada
|
Eaton ETN Offshore II Company
|
|
Canada
|
Eaton Industries (Canada) Company
|
|
Canada
|
Fifth Light Technology Ltd.
|
|
Canada
|
Aeroquip Financial Ltd.
|
|
Cayman Islands
|
Cooper Colombia Investments, Ltd.
|
|
Cayman Islands
|
Cooper Netherlands Investments, Ltd.
|
|
Cayman Islands
|
Cooper Switzerland Investments, Ltd.
|
|
Cayman Islands
|
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
|
Green Holding Company
|
|
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 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 Fu Li An Electronics Co., Ltd.
|
|
China
|
Consolidated Subsidiaries (A)
|
|
Where Organized
|
Dongguan Wiring Devices Electronics Co., Ltd.
|
|
China
|
Eaton (China) Investments Co., Ltd.
|
|
China
|
Eaton Electrical (Zhongshan) 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 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 Quality (Shanghai) Co., Ltd.
|
|
China
|
Eaton SAMC (Shanghai) Aircraft Conveyance System
|
|
China
|
Eaton Senstar Automotive Fluid Connector (Shanghai) Co., Ltd.
|
|
China
|
Eaton Truck and Bus Components (Shanghai) Co., Ltd.
|
|
China
|
Fast Eaton (Xi'an) Drivetrain Company Ltd.
|
|
China
|
Funke+Huster (Tianjin) Electronics Co. Ltd.
|
|
China
|
Guangzhou Nittan Valve Co. Ltd.
|
|
China
|
Kaicheng Funke+Huster (Tangshan) Mining Electrical Co. Ltd.
|
|
China
|
Lian Zheng Electronics (Shenzhen) Co., Ltd.
|
|
China
|
Moeller Electric (Shanghai) Co., Ltd.
|
|
China
|
Moeller Electrical Equipment (Suzhou) Co., Ltd.
|
|
China
|
MTL Instruments (Shanghai) Co. Ltd
|
|
China
|
Phoenixtec Electronics (Shenzhen) Co., Ltd.
|
|
China
|
Rizhao Yoosung Shinhwa Automobile Parts Co., Ltd.
|
|
China
|
Santak Electronics (Shenzhen) Co., Ltd.
|
|
China
|
UPE Electronics (Shenzhen) Co., Ltd.
|
|
China
|
Zhenjiang Daqo Eaton Electrical Systems Co., Ltd.
|
|
China
|
Cooper Industries Colombia S.A.S.
|
|
Columbia
|
Eaton Industries (Colombia) S.A.S.
|
|
Columbia
|
Eaton Electrical S.A.
|
|
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 Holec OY
|
|
Finland
|
Eaton Power Quality OY (Finland)
|
|
Finland
|
ADF Systems SARL
|
|
France
|
Cooper Capri S.A.S.
|
|
France
|
Cooper Menvier France SARL
|
|
France
|
Cooper Securite S.A.S.
|
|
France
|
Eaton France Holding S.A.S.
|
|
France
|
Eaton Industries (France) S.A.S.
|
|
France
|
Consolidated Subsidiaries (A)
|
|
Where Organized
|
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
|
Semelec SAS
|
|
France
|
CEAG Notlichtsysteme GmbH
|
|
Germany
|
Cooper Crouse-Hinds GmbH
|
|
Germany
|
Cooper Germany Holdings GmbH
|
|
Germany
|
Cooper Industries Finanzierungs-GbR
|
|
Germany
|
Cooper Industries Holdings GmbH
|
|
Germany
|
Cooper Investments Verwaltungsgesellschaft mbH
|
|
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 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
|
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
|
Martek Power 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
|
Tai Ah Electrical Ltd.
|
|
Hong Kong
|
Consolidated Subsidiaries (A)
|
|
Where Organized
|
Vickers Systems Limited
|
|
Hong Kong
|
Cooper Bussmann Hungaria Kft.
|
|
Hungary
|
Eaton Enterprises (Hungary) Kft.
|
|
Hungary
|
Eaton Industries KFT
|
|
Hungary
|
Cooper India Private Limited
|
|
India
|
Eaton Fluid Power Limited
|
|
India
|
Eaton India Innovation Center LLP
|
|
India
|
Eaton Industrial Systems Private Limited
|
|
India
|
Eaton Power Quality Private Limited
|
|
India
|
Eaton Technologies Private Limited
|
|
India
|
Internormen Filters Private Limited
|
|
India
|
MTL Instruments Private Limited
|
|
India
|
The Oxalis Protection Technology India Private Limited
|
|
India
|
PT. Eaton Industries
|
|
Indonesia
|
PT. Fluid Sciences Batam
|
|
Indonesia
|
Abeiron III Limited
|
|
Ireland
|
Cooper Industries Trading Limited
|
|
Ireland
|
Cooper Industries Unlimited Company
|
|
Ireland
|
Eaton Capital Unlimited Co.
|
|
Ireland
|
Eaton Finance (Ireland) Limited
|
|
Ireland
|
Eaton Industries (Ireland) Ltimited
|
|
Ireland
|
Tractech (Ireland) Limited
|
|
Ireland
|
Tractech Industries (Ireland) Limted
|
|
Ireland
|
TT (Ireland) Acquisition Limited
|
|
Ireland
|
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 Co., Ltd.
|
|
Japan
|
Nittan Global Tech Co., Ltd.
|
|
Japan
|
Nittan Valve Co., Ltd.
|
|
Japan
|
Cooper Korea Ltd.
|
|
Korea
|
Eaton Industries (Korea) Limited
|
|
Korea
|
Shinhwa Precision Co., Ltd.
|
|
Korea
|
Shinhwa Takahashi Precision Co., Ltd.
|
|
Korea
|
Eaton Electric S.I.A.
|
|
Latvia
|
Aeroquip-Vickers International S.a.r.L.
|
|
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
|
Eaton Controls (Luxembourg) S.a.r.l.
|
|
Luxembourg
|
Consolidated Subsidiaries (A)
|
|
Where Organized
|
Eaton Finance S.a.r.l.
|
|
Luxembourg
|
Eaton Holding II S.a.r.l.
|
|
Luxembourg
|
Eaton Holding III 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 VI S.a.r.l.
|
|
Luxembourg
|
Eaton Holding VIII S.a.r.l.
|
|
Luxembourg
|
Eaton Holding X S.a.r.l.
|
|
Luxembourg
|
Eaton Holding XII B.V./S.a.r.l.
|
|
Luxembourg
|
Eaton Industries (Luxembourg) B.V./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
|
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
|
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 C.V.
|
|
Netherlands
|
Eaton Holding (Netherlands) B.V.
|
|
Netherlands
|
Consolidated Subsidiaries (A)
|
|
Where Organized
|
Eaton Holding I B.V.
|
|
Netherlands
|
Eaton Holding III B.V.
|
|
Netherlands
|
Eaton Holding V B.V.
|
|
Netherlands
|
Eaton Holding VI B.V.
|
|
Netherlands
|
Eaton Holding VII 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 B.V.
|
|
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
|
Wireless Power and Communications AS
|
|
Norway
|
Eaton Industries Panama S.A.
|
|
Panama
|
Eaton Industries SAC
|
|
Peru
|
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
|
Nittan Euro Tech Spolka z o.o.
|
|
Poland
|
Cooper Pretronica 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
|
Cooper Crouse-Hinds Pte. Ltd.
|
|
Singapore
|
Eaton Industries Pte. Ltd.
|
|
Singapore
|
Gitiesse Asia Pte. Ltd.
|
|
Singapore
|
Hernis Scan Systems - Asia Pte. Ltd.
|
|
Singapore
|
Oxalis Asia Pacific Pte Ltd
|
|
Singapore
|
Eaton Electric s.r.o.
|
|
Slovak Republic
|
Eaton Electric (South Africa) Pty Ltd.
|
|
South Africa
|
Consolidated Subsidiaries (A)
|
|
Where Organized
|
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
|
Taiwan Nittan Industrial Co., Ltd.
|
|
Taiwan
|
Eaton Electric (Thailand) Ltd.
|
|
Thailand
|
Eaton Electric Company Ltd.
|
|
Thailand
|
Eaton Industries (Thailand) Ltd.
|
|
Thailand
|
Eaton Elektrik Ticaret Limited Sirketi
|
|
Turkey
|
Polimer Hortum Teknolojileri 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 Electric Manufacturing Middle East LLC
|
|
United Arab Emirates
|
Eaton FZE
|
|
United Arab Emirates
|
Eaton Middle East LLC
|
|
United Arab Emirates
|
Aeroquip (UK) Limited
|
|
United Kingdom
|
Aeroquip Limited
|
|
United Kingdom
|
Cooper Bussmann (U.K.) Limited
|
|
United Kingdom
|
Cooper Controls (Watford) 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 Electric Sales Ltd.
|
|
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
|
Registration
number
|
|
Description
|
|
Filing
date
|
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 22, 2017
|
|
|
|
/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/ Linda A. Hill
|
|
Charles E. Golden, Director
|
|
Linda A. Hill, Director
|
|
|
|
|
|
|
|
|
|
/s/ Arthur E. Johnson
|
|
/s/ Deborah L. McCoy
|
|
Arthur E. Johnson, Director
|
|
Deborah L. McCoy, Director
|
|
|
|
|
|
|
|
|
|
|
|
/s/ Sandra Pianalto
|
|
Gregory R. Page, Director
|
|
Sandra Pianalto, Director
|
|
|
|
|
|
|
|
|
|
/s/ Gerald B. Smith
|
|
/s/ Dorothy C. Thompson
|
|
Gerald B. Smith, Director
|
|
Dorothy C. Thompson, Director
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 22, 2017
|
|
/s/ Craig Arnold
|
|
||
|
|
|
Craig Arnold
|
|
||
|
|
|
Principal Executive Officer
|
|
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 22, 2017
|
|
/s/ Richard H. Fearon
|
|
||
|
|
|
Richard H. Fearon
|
|
||
|
|
|
Principal Financial Officer
|
|
Date:
|
February 22, 2017
|
|
/s/ Craig Arnold
|
|
||
|
|
|
Craig Arnold
|
|
||
|
|
|
Principal Executive Officer
|
|
Date:
|
February 22, 2017
|
|
/s/ Richard H. Fearon
|
|
||
|
|
|
Richard H. Fearon
|
|
||
|
|
|
Principal Financial Officer
|
|