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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 ($0.01 par value)
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The New York Stock Exchange
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Large accelerated filer
þ
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Accelerated filer
o
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Non-accelerated filer
o
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Smaller reporting company
o
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Emerging growth company
o
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(Do not check if a smaller reporting company)
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TABLE OF CONTENTS
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Month
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Total number of shares purchased
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Average price paid per share
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Total number of shares purchased as part of publicly announced plans or programs
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Approximate dollar value of shares that may yet be purchased under the plans or programs (in millions)
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October
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—
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$
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—
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—
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$
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1,064
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November
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781,958
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$
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78.77
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781,958
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$
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1,002
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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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1,002
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Total
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781,958
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$
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78.77
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781,958
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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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57
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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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61
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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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50
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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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Uday Yadav
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54
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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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Cynthia K. Brabander
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56
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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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Heath B. Monesmith
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47
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Executive Vice President and General Counsel of Eaton Corporation
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(March 1, 2017 - present)
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Senior Vice President and Deputy General Counsel of Eaton Corporation
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(May 15, 2015 - March 1, 2017)
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Vice President and Chief Counsel - Litigation of Eaton Corporation
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(November 30, 2012 - May 15, 2015)
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Thomas E. Moran
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53
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Senior Vice President and Secretary of Eaton Corporation plc (November 27, 2012 - present)
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Ken D. Semelsberger
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56
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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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Joao V. Faria
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53
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President - Vehicle Group of Eaton Corporation (May 1, 2017 - present)
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Vice President and General Manager, Latin America, Electrical Sector and
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President, Latin America (August 1, 2013 - April 30, 2017)
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President, Americas, Hydraulics Group (July 1, 2010 - July 31, 2013)
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Curtis J. Hutchins
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52
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President - Hydraulics Group of Eaton Corporation (August 1, 2015 - present)
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President - Asia Pacific Region of Eaton Corporation (September 1, 2009 - July 31, 2015)
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Nandakumar Cheruvatath
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56
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President - Aerospace Group of Eaton Corporation (September 1, 2015 - present)
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Executive Vice President, Eaton Business System (August 1, 2012 - August 31, 2015)
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Richard M. Eubanks, Jr. (Mark)
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45
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President - Electrical Products Group of Eaton Corporation (September 1, 2015 - present)
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President, Eaton Lighting Division (February 1, 2010 - August 31, 2015)
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William J. VanLandingham II
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55
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President - Electrical Systems and Services Group of Eaton Corporation
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(September 1, 2015 - present)
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President, Crouse-Hinds Business, Electrical Sector ( December 1, 2012 - August 31, 2015)
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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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3 (i)
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3 (ii)
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4.1
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4.2
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4.3
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4.4
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4.5
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4.6
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4.7
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Pursuant to Regulation S-K Item 601(b)(4), Eaton agrees to furnish to the SEC, upon request, a copy of the instruments defining the rights of holders of its long-term debt other than those set forth in Exhibits (4.1 - 4.6) hereto
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10
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Material contracts
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(a)
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(b)
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(c)
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(d)
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(e)
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(f)
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(g)
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(h)
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(i)
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(j)
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(k)
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(l)
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(m)
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(n)
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(o)
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(p)
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(q)
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(r)
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(s)
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(t)
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(u)
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(v)
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(w)
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(x)
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(y)
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(z)
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(aa)
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(bb)
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(cc)
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(dd)
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(ee)
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(ff)
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(gg)
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(hh)
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(ii)
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(jj)
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(kk)
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(ll)
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(mm)
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(nn)
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(oo)
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(pp)
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(qq)
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(rr)
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(ss)
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(tt)
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*
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Submitted electronically herewith.
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EATON CORPORATION plc
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Registrant
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Date:
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February 28, 2018
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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 28, 2018
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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 28, 2018
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Year ended December 31
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(In millions except for per share data)
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2017
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2016*
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2015*
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Net sales
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$
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20,404
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$
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19,747
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$
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20,855
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Cost of products sold
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13,756
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13,409
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14,304
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Selling and administrative expense
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3,565
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3,505
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3,596
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Research and development expense
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584
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589
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625
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Interest expense - net
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246
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233
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232
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Gain on sale of business
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1,077
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—
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—
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Other income - net
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(38
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(107
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(35
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Income before income taxes
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3,368
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2,118
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2,133
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Income tax expense
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382
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199
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159
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Net income
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2,986
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1,919
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1,974
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Less net income for noncontrolling interests
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(1
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(3
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(2
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Net income attributable to Eaton ordinary shareholders
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$
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2,985
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$
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1,916
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$
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1,972
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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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6.68
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$
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4.20
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$
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4.22
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Basic
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6.71
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4.21
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4.23
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Weighted-average number of ordinary shares outstanding
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Diluted
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447.0
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456.5
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467.1
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Basic
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444.5
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455.0
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465.5
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Cash dividends declared per ordinary share
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$
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2.40
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$
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2.28
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$
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2.20
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Year ended December 31
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(In millions)
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2017
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2016*
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2015*
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Net income
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$
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2,986
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$
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1,919
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$
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1,974
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Less net income for noncontrolling interests
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(1
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(3
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(2
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Net income attributable to Eaton ordinary shareholders
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2,985
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1,916
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1,972
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Other comprehensive income (loss), net of tax
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Currency translation and related hedging instruments
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807
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(570
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(1,078
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Pensions and other postretirement benefits
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241
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(6
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111
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Cash flow hedges
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(4
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(9
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3
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Other comprehensive income (loss) attributable to Eaton
ordinary shareholders
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1,044
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(585
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(964
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Total comprehensive income attributable to Eaton ordinary shareholders
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$
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4,029
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$
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1,331
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$
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1,008
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December 31
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(In millions)
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2017
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2016*
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Assets
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Current assets
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Cash
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$
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561
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$
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543
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Short-term investments
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534
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203
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Accounts receivable - net
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3,943
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3,560
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Inventory
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2,620
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2,346
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Prepaid expenses and other current assets
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679
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381
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Total current assets
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8,337
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7,033
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Property, plant and equipment
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Land and buildings
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2,491
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2,369
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Machinery and equipment
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6,014
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5,670
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Gross property, plant and equipment
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8,505
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8,039
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Accumulated depreciation
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(5,003
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)
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(4,596
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)
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Net property, plant and equipment
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3,502
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3,443
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Other noncurrent assets
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Goodwill
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13,568
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13,201
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Other intangible assets
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5,265
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5,514
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Deferred income taxes
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253
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325
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Other assets
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1,698
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|
960
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|
||
Total assets
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$
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32,623
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$
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30,476
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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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6
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$
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14
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Current portion of long-term debt
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578
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1,552
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Accounts payable
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2,166
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1,718
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Accrued compensation
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453
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379
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|
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Other current liabilities
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1,872
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1,822
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Total current liabilities
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5,075
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5,485
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Noncurrent liabilities
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|
||||
Long-term debt
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7,167
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6,711
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Pension liabilities
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1,226
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1,659
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Other postretirement benefits liabilities
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362
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368
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Deferred income taxes
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538
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321
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Other noncurrent liabilities
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965
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934
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|
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Total noncurrent liabilities
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10,258
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9,993
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||||
Shareholders’ equity
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|
||||
Ordinary shares (439.9 million outstanding in 2017 and 449.4 million in 2016)
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4
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5
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|
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Capital in excess of par value
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11,987
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11,845
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Retained earnings
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8,669
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7,555
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Accumulated other comprehensive loss
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(3,404
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)
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(4,448
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)
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Shares held in trust
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(3
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(3
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)
|
||
Total Eaton shareholders’ equity
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17,253
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|
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14,954
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|
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Noncontrolling interests
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37
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44
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Total equity
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17,290
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14,998
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|
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Total liabilities and equity
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$
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32,623
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$
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30,476
|
|
|
Year ended December 31
|
||||||||||
(In millions)
|
2017
|
|
2016*
|
|
2015*
|
||||||
Operating activities
|
|
|
|
|
|
||||||
Net income
|
$
|
2,986
|
|
|
$
|
1,919
|
|
|
$
|
1,974
|
|
Adjustments to reconcile to net cash provided by operating activities
|
|
|
|
|
|
||||||
Depreciation and amortization
|
914
|
|
|
929
|
|
|
925
|
|
|||
Deferred income taxes
|
(206
|
)
|
|
(83
|
)
|
|
(105
|
)
|
|||
Pension and other postretirement benefits expense
|
208
|
|
|
235
|
|
|
323
|
|
|||
Contributions to pension plans
|
(473
|
)
|
|
(262
|
)
|
|
(330
|
)
|
|||
Contributions to other postretirement benefits plans
|
(20
|
)
|
|
(30
|
)
|
|
(31
|
)
|
|||
Gain on sale of businesses
|
(843
|
)
|
|
—
|
|
|
—
|
|
|||
Changes in working capital
|
|
|
|
|
|
|
|
|
|||
Accounts receivable - net
|
(231
|
)
|
|
(170
|
)
|
|
5
|
|
|||
Inventory
|
(202
|
)
|
|
34
|
|
|
(8
|
)
|
|||
Accounts payable
|
388
|
|
|
—
|
|
|
(120
|
)
|
|||
Accrued compensation
|
59
|
|
|
20
|
|
|
(28
|
)
|
|||
Accrued income and other taxes
|
(4
|
)
|
|
30
|
|
|
(9
|
)
|
|||
Other current assets
|
2
|
|
|
(21
|
)
|
|
7
|
|
|||
Other current liabilities
|
(203
|
)
|
|
(44
|
)
|
|
(38
|
)
|
|||
Other - net
|
291
|
|
|
13
|
|
|
(156
|
)
|
|||
Net cash provided by operating activities
|
2,666
|
|
|
2,570
|
|
|
2,409
|
|
|||
|
|
|
|
|
|
||||||
Investing activities
|
|
|
|
|
|
||||||
Capital expenditures for property, plant and equipment
|
(520
|
)
|
|
(497
|
)
|
|
(506
|
)
|
|||
Proceeds from sale of business
|
607
|
|
|
—
|
|
|
1
|
|
|||
Cash received from (paid for) acquisitions of businesses, net of cash acquired
|
—
|
|
|
1
|
|
|
(72
|
)
|
|||
Sales (purchases) of short-term investments - net
|
(298
|
)
|
|
(40
|
)
|
|
37
|
|
|||
Other - net
|
(6
|
)
|
|
7
|
|
|
(35
|
)
|
|||
Net cash used in investing activities
|
(217
|
)
|
|
(529
|
)
|
|
(575
|
)
|
|||
|
|
|
|
|
|
||||||
Financing activities
|
|
|
|
|
|
||||||
Proceeds from borrowings
|
1,000
|
|
|
631
|
|
|
425
|
|
|||
Payments on borrowings
|
(1,554
|
)
|
|
(653
|
)
|
|
(1,027
|
)
|
|||
Cash dividends paid
|
(1,068
|
)
|
|
(1,037
|
)
|
|
(1,026
|
)
|
|||
Exercise of employee stock options
|
66
|
|
|
74
|
|
|
52
|
|
|||
Repurchase of shares
|
(850
|
)
|
|
(730
|
)
|
|
(682
|
)
|
|||
Employee taxes paid from shares withheld
|
(22
|
)
|
|
(18
|
)
|
|
(38
|
)
|
|||
Other - net
|
(14
|
)
|
|
(5
|
)
|
|
(9
|
)
|
|||
Net cash used in financing activities
|
(2,442
|
)
|
|
(1,738
|
)
|
|
(2,305
|
)
|
|||
|
|
|
|
|
|
||||||
Effect of currency on cash
|
11
|
|
|
(28
|
)
|
|
(42
|
)
|
|||
Total increase (decrease) in cash
|
18
|
|
|
275
|
|
|
(513
|
)
|
|||
Cash at the beginning of the period
|
543
|
|
|
268
|
|
|
781
|
|
|||
Cash at the end of the period
|
$
|
561
|
|
|
$
|
543
|
|
|
$
|
268
|
|
|
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, 2015 (originally reported)
|
467.9
|
|
|
$
|
5
|
|
|
$
|
11,605
|
|
|
$
|
7,078
|
|
|
$
|
(2,899
|
)
|
|
$
|
(3
|
)
|
|
$
|
15,786
|
|
|
$
|
53
|
|
|
$
|
15,839
|
|
Inventory accounting method change*
|
—
|
|
|
—
|
|
|
—
|
|
|
70
|
|
|
—
|
|
|
—
|
|
|
70
|
|
|
—
|
|
|
70
|
|
||||||||
Balance at January 1, 2015*
|
467.9
|
|
|
5
|
|
|
11,605
|
|
|
7,148
|
|
|
(2,899
|
)
|
|
(3
|
)
|
|
15,856
|
|
|
53
|
|
|
15,909
|
|
||||||||
Net income*
|
—
|
|
|
—
|
|
|
—
|
|
|
1,972
|
|
|
—
|
|
|
—
|
|
|
1,972
|
|
|
2
|
|
|
1,974
|
|
||||||||
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
|
|
|
7,409
|
|
|
(3,863
|
)
|
|
(3
|
)
|
|
15,249
|
|
|
45
|
|
|
15,294
|
|
||||||||
Net income*
|
—
|
|
|
—
|
|
|
—
|
|
|
1,916
|
|
|
—
|
|
|
—
|
|
|
1,916
|
|
|
3
|
|
|
1,919
|
|
||||||||
Other comprehensive loss, net of tax
|
|
|
|
|
|
|
|
|
(585
|
)
|
|
|
|
(585
|
)
|
|
—
|
|
|
(585
|
)
|
|||||||||||||
Cash dividends paid
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,037
|
)
|
|
—
|
|
|
—
|
|
|
(1,037
|
)
|
|
(2
|
)
|
|
(1,039
|
)
|
||||||||
Issuance of shares under equity-based compensation plans - net (net of income tax benefit of $1)
|
2.4
|
|
|
—
|
|
|
144
|
|
|
(3
|
)
|
|
—
|
|
|
—
|
|
|
141
|
|
|
—
|
|
|
141
|
|
||||||||
Changes in noncontrolling interest of consolidated subsidiaries - net
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2
|
)
|
|
(2
|
)
|
||||||||
Repurchase of shares
|
(11.8
|
)
|
|
—
|
|
|
—
|
|
|
(730
|
)
|
|
—
|
|
|
—
|
|
|
(730
|
)
|
|
—
|
|
|
(730
|
)
|
||||||||
Balance at December 31, 2016*
|
449.4
|
|
|
5
|
|
|
11,845
|
|
|
7,555
|
|
|
(4,448
|
)
|
|
(3
|
)
|
|
14,954
|
|
|
44
|
|
|
14,998
|
|
||||||||
Cumulative-effect adjustment upon adoption of ASU 2016-09
|
—
|
|
|
—
|
|
|
—
|
|
|
48
|
|
|
—
|
|
|
—
|
|
|
48
|
|
|
—
|
|
|
48
|
|
||||||||
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
2,985
|
|
|
—
|
|
|
—
|
|
|
2,985
|
|
|
1
|
|
|
2,986
|
|
||||||||
Other comprehensive income, net of tax
|
|
|
|
|
|
|
|
|
1,044
|
|
|
|
|
1,044
|
|
|
—
|
|
|
1,044
|
|
|||||||||||||
Cash dividends paid
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,068
|
)
|
|
—
|
|
|
—
|
|
|
(1,068
|
)
|
|
(5
|
)
|
|
(1,073
|
)
|
||||||||
Issuance of shares under equity-based compensation plans
|
2.0
|
|
|
—
|
|
|
142
|
|
|
(2
|
)
|
|
—
|
|
|
—
|
|
|
140
|
|
|
—
|
|
|
140
|
|
||||||||
Changes in noncontrolling interest of consolidated subsidiaries - net
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3
|
)
|
|
(3
|
)
|
||||||||
Repurchase of shares
|
(11.5
|
)
|
|
(1
|
)
|
|
—
|
|
|
(849
|
)
|
|
—
|
|
|
—
|
|
|
(850
|
)
|
|
—
|
|
|
(850
|
)
|
||||||||
Balance at December 31, 2017
|
439.9
|
|
|
$
|
4
|
|
|
$
|
11,987
|
|
|
$
|
8,669
|
|
|
$
|
(3,404
|
)
|
|
$
|
(3
|
)
|
|
$
|
17,253
|
|
|
$
|
37
|
|
|
$
|
17,290
|
|
Note 1.
|
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
|
Note 2.
|
SALE AND ACQUISITIONS OF BUSINESSES
|
Note 3.
|
ACQUISITION INTEGRATION CHARGES
|
|
2017
|
|
2016
|
|
2015
|
||||||
Electrical Products
|
$
|
4
|
|
|
$
|
3
|
|
|
$
|
25
|
|
Electrical Systems and Services
|
—
|
|
|
1
|
|
|
15
|
|
|||
Hydraulics
|
—
|
|
|
—
|
|
|
2
|
|
|||
Total business segments
|
4
|
|
|
4
|
|
|
42
|
|
|||
Corporate
|
—
|
|
|
—
|
|
|
5
|
|
|||
Total acquisition integration charges before income taxes
|
4
|
|
|
4
|
|
|
47
|
|
|||
Income taxes
|
2
|
|
|
1
|
|
|
16
|
|
|||
Total after income taxes
|
$
|
2
|
|
|
$
|
3
|
|
|
$
|
31
|
|
Per ordinary share - diluted
|
$
|
—
|
|
|
$
|
0.01
|
|
|
$
|
0.07
|
|
Note 4.
|
RESTRUCTURING CHARGES
|
|
2017
|
|
2016
|
|
2015
|
||||||
Workforce reductions
|
$
|
57
|
|
|
$
|
177
|
|
|
$
|
112
|
|
Plant closings and other costs
|
59
|
|
|
34
|
|
|
17
|
|
|||
Total
|
$
|
116
|
|
|
$
|
211
|
|
|
$
|
129
|
|
|
2017
|
|
2016
|
|
2015
|
||||||
Electrical Products
|
$
|
29
|
|
|
$
|
44
|
|
|
$
|
12
|
|
Electrical Systems & Services
|
16
|
|
|
49
|
|
|
29
|
|
|||
Hydraulics
|
32
|
|
|
67
|
|
|
31
|
|
|||
Aerospace
|
2
|
|
|
4
|
|
|
5
|
|
|||
Vehicle
|
12
|
|
|
35
|
|
|
34
|
|
|||
Corporate
|
25
|
|
|
12
|
|
|
18
|
|
|||
Total
|
$
|
116
|
|
|
$
|
211
|
|
|
$
|
129
|
|
|
Workforce reductions
|
|
Plant closing and other
|
|
Total
|
||||||
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
|
|
|||
Liability recognized
|
57
|
|
|
59
|
|
|
116
|
|
|||
Payments
|
(102
|
)
|
|
(39
|
)
|
|
(141
|
)
|
|||
Other adjustments
|
(1
|
)
|
|
(16
|
)
|
|
(17
|
)
|
|||
Balance at December 31, 2017
|
$
|
67
|
|
|
$
|
5
|
|
|
$
|
72
|
|
Note 5.
|
GOODWILL AND OTHER INTANGIBLE ASSETS
|
|
Electrical
Products
|
|
Electrical
Systems
and Services
|
|
Hydraulics
|
|
Aerospace
|
|
Vehicle
|
|
Total
|
||||||||||||
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
|
|
||||||
Goodwill written off from sale of business
|
—
|
|
|
(3
|
)
|
|
—
|
|
|
—
|
|
|
(52
|
)
|
|
(55
|
)
|
||||||
Translation
|
262
|
|
|
111
|
|
|
36
|
|
|
9
|
|
|
4
|
|
|
422
|
|
||||||
December 31, 2017
|
$
|
6,759
|
|
|
$
|
4,311
|
|
|
$
|
1,257
|
|
|
$
|
947
|
|
|
$
|
294
|
|
|
$
|
13,568
|
|
|
2017
|
|
2016
|
||||||||||||
|
Historical
cost
|
|
Accumulated
amortization
|
|
Historical
cost
|
|
Accumulated
amortization
|
||||||||
Intangible assets not subject to amortization
|
|
|
|
|
|
|
|
||||||||
Trademarks
|
$
|
1,654
|
|
|
|
|
$
|
1,637
|
|
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Intangible assets subject to amortization
|
|
|
|
|
|
|
|
||||||||
Customer relationships
|
$
|
3,586
|
|
|
$
|
1,475
|
|
|
$
|
3,456
|
|
|
$
|
1,199
|
|
Patents and technology
|
1,395
|
|
|
628
|
|
|
1,342
|
|
|
519
|
|
||||
Trademarks
|
1,137
|
|
|
473
|
|
|
1,104
|
|
|
378
|
|
||||
Other
|
99
|
|
|
30
|
|
|
97
|
|
|
26
|
|
||||
Total intangible assets subject to amortization
|
$
|
6,217
|
|
|
$
|
2,606
|
|
|
$
|
5,999
|
|
|
$
|
2,122
|
|
2017
|
$
|
383
|
|
2018
|
369
|
|
|
2019
|
362
|
|
|
2020
|
357
|
|
|
2021
|
346
|
|
|
2022
|
336
|
|
Note 6.
|
DEBT
|
|
2017
|
|
2016
|
||||
5.30% notes due 2017 ($150 converted to floating rate by interest rate swap)
|
$
|
—
|
|
|
$
|
250
|
|
6.10% debentures due 2017
|
—
|
|
|
289
|
|
||
1.50% senior notes due 2017 ($750 converted to floating rate by interest rate swap)
|
—
|
|
|
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
|
88
|
|
|
86
|
|
||
6.95% notes due 2019 ($300 converted to floating rate by interest rate swap)
|
300
|
|
|
300
|
|
||
3.875% debentures due 2020 ($150 converted to floating rate by interest rate swap)
|
239
|
|
|
239
|
|
||
3.47% notes due 2021 ($275 converted to floating rate by interest rate swap)
|
300
|
|
|
300
|
|
||
8.10% debentures due 2022 ($100 converted to floating rate by interest rate swap)
|
100
|
|
|
100
|
|
||
2.75% senior notes due 2022 ($1,400 converted to floating rate by interest rate swap)
|
1,600
|
|
|
1,600
|
|
||
3.68% notes due 2023 ($200 converted to floating rate by interest rate swap)
|
300
|
|
|
300
|
|
||
0.75% euro notes due 2024
|
659
|
|
|
580
|
|
||
6.50% debentures due 2025
|
145
|
|
|
145
|
|
||
3.10% senior notes due 2027
|
700
|
|
|
—
|
|
||
7.65% debentures due 2029 ($50 converted to floating rate by interest rate swap)
|
200
|
|
|
200
|
|
||
4.00% senior notes due 2032
|
700
|
|
|
700
|
|
||
5.45% debentures due 2034 ($25 converted to floating rate by interest rate swap)
|
136
|
|
|
136
|
|
||
5.80% notes due 2037
|
240
|
|
|
240
|
|
||
4.15% senior notes due 2042
|
1,000
|
|
|
1,000
|
|
||
3.92% senior notes due 2047
|
300
|
|
|
—
|
|
||
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
|
49
|
|
|
109
|
|
||
Total long-term debt
|
7,745
|
|
|
8,263
|
|
||
Less current portion of long-term debt
|
(578
|
)
|
|
(1,552
|
)
|
||
Long-term debt less current portion
|
$
|
7,167
|
|
|
$
|
6,711
|
|
2018
|
$
|
578
|
|
2019
|
340
|
|
|
2020
|
241
|
|
|
2021
|
302
|
|
|
2022
|
1,701
|
|
2017
|
$
|
293
|
|
2016
|
266
|
|
|
2015
|
271
|
|
Note 7.
|
RETIREMENT BENEFITS PLANS
|
|
United States
pension liabilities
|
|
Non-United States
pension liabilities
|
|
Other postretirement
liabilities
|
||||||||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||||||
Funded status
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Fair value of plan assets
|
$
|
3,585
|
|
|
$
|
2,969
|
|
|
$
|
1,727
|
|
|
$
|
1,478
|
|
|
$
|
55
|
|
|
$
|
74
|
|
Benefit obligations
|
(3,961
|
)
|
|
(3,771
|
)
|
|
(2,399
|
)
|
|
(2,314
|
)
|
|
(448
|
)
|
|
(473
|
)
|
||||||
Funded status
|
$
|
(376
|
)
|
|
$
|
(802
|
)
|
|
$
|
(672
|
)
|
|
$
|
(836
|
)
|
|
$
|
(393
|
)
|
|
$
|
(399
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Amounts recognized in the Consolidated
Balance Sheets
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Non-current assets
|
$
|
82
|
|
|
$
|
34
|
|
|
$
|
136
|
|
|
$
|
33
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Current liabilities
|
(15
|
)
|
|
(24
|
)
|
|
(25
|
)
|
|
(22
|
)
|
|
(31
|
)
|
|
(31
|
)
|
||||||
Non-current liabilities
|
(443
|
)
|
|
(812
|
)
|
|
(783
|
)
|
|
(847
|
)
|
|
(362
|
)
|
|
(368
|
)
|
||||||
Total
|
$
|
(376
|
)
|
|
$
|
(802
|
)
|
|
$
|
(672
|
)
|
|
$
|
(836
|
)
|
|
$
|
(393
|
)
|
|
$
|
(399
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Amounts recognized in Accumulated other
comprehensive loss (pretax)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net actuarial loss
|
$
|
1,059
|
|
|
$
|
1,232
|
|
|
$
|
596
|
|
|
$
|
771
|
|
|
$
|
19
|
|
|
$
|
21
|
|
Prior service cost (credit)
|
4
|
|
|
3
|
|
|
8
|
|
|
8
|
|
|
(46
|
)
|
|
(60
|
)
|
||||||
Total
|
$
|
1,063
|
|
|
$
|
1,235
|
|
|
$
|
604
|
|
|
$
|
779
|
|
|
$
|
(27
|
)
|
|
$
|
(39
|
)
|
|
United States
pension liabilities
|
|
Non-United States
pension liabilities
|
|
Other postretirement
liabilities
|
||||||||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||||||
Balance at January 1
|
$
|
3,771
|
|
|
$
|
3,829
|
|
|
$
|
2,314
|
|
|
$
|
2,175
|
|
|
$
|
473
|
|
|
$
|
575
|
|
Service cost
|
96
|
|
|
111
|
|
|
71
|
|
|
63
|
|
|
3
|
|
|
4
|
|
||||||
Interest cost
|
123
|
|
|
125
|
|
|
55
|
|
|
62
|
|
|
14
|
|
|
17
|
|
||||||
Actuarial (gain) loss
|
271
|
|
|
52
|
|
|
(148
|
)
|
|
355
|
|
|
2
|
|
|
(72
|
)
|
||||||
Gross benefits paid
|
(301
|
)
|
|
(346
|
)
|
|
(97
|
)
|
|
(94
|
)
|
|
(74
|
)
|
|
(79
|
)
|
||||||
Currency translation
|
—
|
|
|
—
|
|
|
223
|
|
|
(245
|
)
|
|
3
|
|
|
1
|
|
||||||
Plan amendments
|
1
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
—
|
|
||||||
Other
|
—
|
|
|
—
|
|
|
(19
|
)
|
|
(4
|
)
|
|
27
|
|
|
27
|
|
||||||
Balance at December 31
|
$
|
3,961
|
|
|
$
|
3,771
|
|
|
$
|
2,399
|
|
|
$
|
2,314
|
|
|
$
|
448
|
|
|
$
|
473
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Accumulated benefit obligation
|
$
|
3,802
|
|
|
$
|
3,620
|
|
|
$
|
2,283
|
|
|
$
|
2,189
|
|
|
|
|
|
|
United States
pension liabilities
|
|
Non-United States
pension liabilities
|
|
Other postretirement
liabilities
|
||||||||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||||||
Balance at January 1
|
$
|
2,969
|
|
|
$
|
2,934
|
|
|
$
|
1,478
|
|
|
$
|
1,472
|
|
|
$
|
74
|
|
|
$
|
93
|
|
Actual return on plan assets
|
543
|
|
|
221
|
|
|
131
|
|
|
212
|
|
|
8
|
|
|
3
|
|
||||||
Employer contributions
|
374
|
|
|
160
|
|
|
99
|
|
|
102
|
|
|
20
|
|
|
30
|
|
||||||
Gross benefits paid
|
(301
|
)
|
|
(346
|
)
|
|
(97
|
)
|
|
(94
|
)
|
|
(74
|
)
|
|
(79
|
)
|
||||||
Currency translation
|
—
|
|
|
—
|
|
|
135
|
|
|
(211
|
)
|
|
—
|
|
|
—
|
|
||||||
Other
|
—
|
|
|
—
|
|
|
(19
|
)
|
|
(3
|
)
|
|
27
|
|
|
27
|
|
||||||
Balance at December 31
|
$
|
3,585
|
|
|
$
|
2,969
|
|
|
$
|
1,727
|
|
|
$
|
1,478
|
|
|
$
|
55
|
|
|
$
|
74
|
|
|
United States
pension liabilities
|
|
Non-United States
pension liabilities
|
||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Projected benefit obligation
|
$
|
3,540
|
|
|
$
|
3,342
|
|
|
$
|
966
|
|
|
$
|
1,902
|
|
Accumulated benefit obligation
|
3,380
|
|
|
3,190
|
|
|
911
|
|
|
1,824
|
|
||||
Fair value of plan assets
|
3,081
|
|
|
2,505
|
|
|
175
|
|
|
1,066
|
|
|
United States
pension liabilities
|
|
Non-United States
pension liabilities
|
|
Other postretirement
liabilities
|
||||||||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||||||
Balance at January 1
|
$
|
1,235
|
|
|
$
|
1,327
|
|
|
$
|
779
|
|
|
$
|
653
|
|
|
$
|
(39
|
)
|
|
$
|
21
|
|
Prior service cost arising during the year
|
1
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
—
|
|
||||||
Net loss (gain) arising during the year
|
(28
|
)
|
|
81
|
|
|
(185
|
)
|
|
235
|
|
|
(2
|
)
|
|
(69
|
)
|
||||||
Currency translation
|
—
|
|
|
—
|
|
|
66
|
|
|
(75
|
)
|
|
1
|
|
|
1
|
|
||||||
Less amounts included in expense during the year
|
(145
|
)
|
|
(173
|
)
|
|
(56
|
)
|
|
(36
|
)
|
|
13
|
|
|
8
|
|
||||||
Net change for the year
|
(172
|
)
|
|
(92
|
)
|
|
(175
|
)
|
|
126
|
|
|
12
|
|
|
(60
|
)
|
||||||
Balance at December 31
|
$
|
1,063
|
|
|
$
|
1,235
|
|
|
$
|
604
|
|
|
$
|
779
|
|
|
$
|
(27
|
)
|
|
$
|
(39
|
)
|
|
United States
pension benefit expense
|
|
Non-United States
pension benefit expense
|
|
Other postretirement
benefits expense
|
||||||||||||||||||||||||||||||
|
2017
|
|
2016
|
|
2015
|
|
2017
|
|
2016
|
|
2015
|
|
2017
|
|
2016
|
|
2015
|
||||||||||||||||||
Service cost
|
$
|
96
|
|
|
$
|
111
|
|
|
$
|
123
|
|
|
$
|
71
|
|
|
$
|
63
|
|
|
$
|
71
|
|
|
$
|
3
|
|
|
$
|
4
|
|
|
$
|
6
|
|
Interest cost
|
123
|
|
|
125
|
|
|
156
|
|
|
55
|
|
|
62
|
|
|
72
|
|
|
14
|
|
|
17
|
|
|
24
|
|
|||||||||
Expected return on plan assets
|
(244
|
)
|
|
(250
|
)
|
|
(262
|
)
|
|
(94
|
)
|
|
(92
|
)
|
|
(99
|
)
|
|
(4
|
)
|
|
(6
|
)
|
|
(5
|
)
|
|||||||||
Amortization
|
83
|
|
|
92
|
|
|
119
|
|
|
51
|
|
|
33
|
|
|
40
|
|
|
(13
|
)
|
|
(9
|
)
|
|
2
|
|
|||||||||
|
58
|
|
|
78
|
|
|
136
|
|
|
83
|
|
|
66
|
|
|
84
|
|
|
—
|
|
|
6
|
|
|
27
|
|
|||||||||
Settlements and special termination benefits
|
62
|
|
|
81
|
|
|
74
|
|
|
5
|
|
|
3
|
|
|
2
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|||||||||
Total expense
|
$
|
120
|
|
|
$
|
159
|
|
|
$
|
210
|
|
|
$
|
88
|
|
|
$
|
69
|
|
|
$
|
86
|
|
|
$
|
—
|
|
|
$
|
7
|
|
|
$
|
27
|
|
|
United States
pension liabilities
|
|
Non-United States
pension liabilities
|
|
Other postretirement
liabilities
|
||||||
Actuarial loss
|
$
|
146
|
|
|
$
|
38
|
|
|
$
|
1
|
|
Prior service cost (credit)
|
1
|
|
|
1
|
|
|
(14
|
)
|
|||
Total
|
$
|
147
|
|
|
$
|
39
|
|
|
$
|
(13
|
)
|
|
United States
pension plans
|
|
Non-United States
pension plans
|
||||||||||||||
|
2017
|
|
2016
|
|
2015
|
|
2017
|
|
2016
|
|
2015
|
||||||
Assumptions used to determine benefit obligation at year-end
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Discount rate
|
3.64
|
%
|
|
4.12
|
%
|
|
4.22
|
%
|
|
2.62
|
%
|
|
2.63
|
%
|
|
3.46
|
%
|
Rate of compensation increase
|
3.15
|
%
|
|
3.15
|
%
|
|
3.18
|
%
|
|
3.11
|
%
|
|
3.13
|
%
|
|
3.12
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Assumptions used to determine expense
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Discount rate used to determine benefit obligation
|
4.12
|
%
|
|
4.22
|
%
|
|
3.97
|
%
|
|
2.63
|
%
|
|
3.46
|
%
|
|
3.33
|
%
|
Discount rate used to determine service cost
|
4.31
|
%
|
|
4.35
|
%
|
|
3.97
|
%
|
|
3.38
|
%
|
|
4.13
|
%
|
|
3.33
|
%
|
Discount rate used to determine interest cost
|
3.40
|
%
|
|
3.42
|
%
|
|
3.97
|
%
|
|
2.34
|
%
|
|
3.07
|
%
|
|
3.33
|
%
|
Expected long-term return on plan assets
|
7.90
|
%
|
|
8.50
|
%
|
|
8.50
|
%
|
|
6.30
|
%
|
|
6.62
|
%
|
|
6.92
|
%
|
Rate of compensation increase
|
3.15
|
%
|
|
3.18
|
%
|
|
3.16
|
%
|
|
3.13
|
%
|
|
3.12
|
%
|
|
3.13
|
%
|
|
Other postretirement
benefits plans
|
|||||||
|
2017
|
|
2016
|
|
2015
|
|||
Assumptions used to determine benefit obligation at year-end
|
|
|
|
|
|
|||
Discount rate
|
3.55
|
%
|
|
3.96
|
%
|
|
4.04
|
%
|
Health care cost trend rate assumed for next year
|
8.25
|
%
|
|
7.35
|
%
|
|
7.10
|
%
|
Ultimate health care cost trend rate
|
4.75
|
%
|
|
4.75
|
%
|
|
4.75
|
%
|
Year ultimate health care cost trend rate is achieved
|
2027
|
|
|
2026
|
|
|
2025
|
|
|
|
|
|
|
|
|||
Assumptions used to determine expense
|
|
|
|
|
|
|||
Discount rate used to determine benefit obligation
|
3.96
|
%
|
|
4.04
|
%
|
|
3.79
|
%
|
Discount rate used to determine service cost
|
4.11
|
%
|
|
4.26
|
%
|
|
3.79
|
%
|
Discount rate used to determine interest cost
|
3.18
|
%
|
|
3.12
|
%
|
|
3.79
|
%
|
Initial health care cost trend rate
|
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
|
|
|
1% increase
|
|
1% decrease
|
||||
Effect on total service and interest cost
|
$
|
1
|
|
|
$
|
(1
|
)
|
Effect on other postretirement liabilities
|
13
|
|
|
(12
|
)
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
||||||||
United States plans
|
$
|
16
|
|
|
$
|
374
|
|
|
$
|
160
|
|
|
$
|
221
|
|
Non-United States plans
|
96
|
|
|
99
|
|
|
102
|
|
|
109
|
|
||||
Total contributions
|
$
|
112
|
|
|
$
|
473
|
|
|
$
|
262
|
|
|
$
|
330
|
|
|
Estimated
United States
pension payments
|
|
Estimated
non-United States
pension payments
|
|
Estimated other postretirement
benefit payments
|
||||||||||
|
|
|
Gross
|
|
Medicare prescription
drug subsidy
|
||||||||||
2018
|
$
|
291
|
|
|
$
|
88
|
|
|
$
|
47
|
|
|
$
|
(2
|
)
|
2019
|
291
|
|
|
90
|
|
|
43
|
|
|
(2
|
)
|
||||
2020
|
292
|
|
|
93
|
|
|
39
|
|
|
(2
|
)
|
||||
2021
|
299
|
|
|
95
|
|
|
35
|
|
|
(1
|
)
|
||||
2022
|
298
|
|
|
99
|
|
|
35
|
|
|
—
|
|
||||
2023 - 2027
|
1,478
|
|
|
548
|
|
|
141
|
|
|
(2
|
)
|
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)
|
||||||||
2017
|
|
|
|
|
|
|
|
||||||||
Common collective trusts
|
|
|
|
|
|
|
|
||||||||
Non-United States equity and global equities
|
$
|
741
|
|
|
$
|
—
|
|
|
$
|
741
|
|
|
$
|
—
|
|
United States equity
|
86
|
|
|
—
|
|
|
86
|
|
|
—
|
|
||||
Fixed income
|
478
|
|
|
—
|
|
|
478
|
|
|
—
|
|
||||
Fixed income securities
|
709
|
|
|
—
|
|
|
709
|
|
|
—
|
|
||||
United States treasuries
|
67
|
|
|
67
|
|
|
—
|
|
|
—
|
|
||||
Bank loans
|
161
|
|
|
—
|
|
|
161
|
|
|
—
|
|
||||
Real estate
|
239
|
|
|
220
|
|
|
—
|
|
|
19
|
|
||||
Equity securities
|
139
|
|
|
139
|
|
|
—
|
|
|
—
|
|
||||
Cash equivalents
|
86
|
|
|
51
|
|
|
35
|
|
|
—
|
|
||||
Exchange traded funds
|
224
|
|
|
224
|
|
|
—
|
|
|
—
|
|
||||
Other
|
81
|
|
|
—
|
|
|
8
|
|
|
73
|
|
||||
Common collective and other trusts measured at net asset value
|
2,225
|
|
|
|
|
|
|
|
|||||||
Hedge funds measured at net asset value
|
67
|
|
|
|
|
|
|
|
|||||||
Money market funds measured at net asset value
|
9
|
|
|
|
|
|
|
|
|||||||
Total pension plan assets
|
$
|
5,312
|
|
|
$
|
701
|
|
|
$
|
2,218
|
|
|
$
|
92
|
|
|
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
|
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
|
|
|
Real estate
|
|
Other
|
|
Total
|
||||||
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
|
|
|||
Actual return on plan assets:
|
|
|
|
|
|
||||||
Gains (losses) relating to assets still held at year-end
|
1
|
|
|
(5
|
)
|
|
(4
|
)
|
|||
Purchases, sales, settlements - net
|
12
|
|
|
(17
|
)
|
|
(5
|
)
|
|||
Transfers into or out of Level 3
|
—
|
|
|
—
|
|
|
—
|
|
|||
Balance at December 31, 2017
|
$
|
19
|
|
|
$
|
73
|
|
|
$
|
92
|
|
|
Total
|
|
Quoted prices
in active
markets for
identical assets
(Level 1)
|
|
Other
observable
inputs
(Level 2)
|
|
Unobservable
inputs
(Level 3)
|
||||||||
2017
|
|
|
|
|
|
|
|
||||||||
Cash equivalents
|
$
|
7
|
|
|
$
|
7
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Common collective and other trusts measured at net asset value
|
48
|
|
|
|
|
|
|
|
|||||||
Total other postretirement benefits plan assets
|
$
|
55
|
|
|
$
|
7
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
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
|
|
|
$
|
—
|
|
|
$
|
—
|
|
2017
|
$
|
114
|
|
2016
|
72
|
|
|
2015
|
137
|
|
Note 8.
|
COMMITMENTS AND CONTINGENCIES
|
|
2017
|
|
2016
|
|
2015
|
||||||
Balance at January 1
|
$
|
180
|
|
|
$
|
195
|
|
|
$
|
213
|
|
Provision
|
163
|
|
|
117
|
|
|
104
|
|
|||
Settled
|
(156
|
)
|
|
(130
|
)
|
|
(114
|
)
|
|||
Other
|
1
|
|
|
(2
|
)
|
|
(8
|
)
|
|||
Balance at December 31
|
$
|
188
|
|
|
$
|
180
|
|
|
$
|
195
|
|
2018
|
$
|
159
|
|
2019
|
119
|
|
|
2020
|
85
|
|
|
2021
|
63
|
|
|
2022
|
42
|
|
|
Thereafter
|
71
|
|
|
Total noncancelable lease commitments
|
$
|
539
|
|
2017
|
$
|
222
|
|
2016
|
220
|
|
|
2015
|
225
|
|
Note 9.
|
INCOME TAXES
|
|
Income (loss) before income taxes
|
||||||||||
|
2017
|
|
2016
|
|
2015
|
||||||
Ireland
|
$
|
(1,090
|
)
|
|
$
|
(923
|
)
|
|
$
|
(608
|
)
|
Foreign
|
4,458
|
|
|
3,041
|
|
|
2,741
|
|
|||
Total income before income taxes
|
$
|
3,368
|
|
|
$
|
2,118
|
|
|
$
|
2,133
|
|
|
Income tax expense (benefit)
|
||||||||||
|
2017
|
|
2016
|
|
2015
|
||||||
Current
|
|
|
|
|
|
||||||
Ireland
|
$
|
1
|
|
|
$
|
2
|
|
|
$
|
8
|
|
Foreign
|
|
|
|
|
|
||||||
United States
|
123
|
|
|
93
|
|
|
110
|
|
|||
Non-United States
|
234
|
|
|
209
|
|
|
240
|
|
|||
Total current income tax expense
|
358
|
|
|
304
|
|
|
358
|
|
|||
|
|
|
|
|
|
||||||
Deferred
|
|
|
|
|
|
||||||
Ireland
|
—
|
|
|
2
|
|
|
1
|
|
|||
Foreign
|
|
|
|
|
|
||||||
United States
|
82
|
|
|
(77
|
)
|
|
(76
|
)
|
|||
Non-United States
|
(58
|
)
|
|
(30
|
)
|
|
(124
|
)
|
|||
Total deferred income tax expense (benefit)
|
24
|
|
|
(105
|
)
|
|
(199
|
)
|
|||
Total income tax expense
|
$
|
382
|
|
|
$
|
199
|
|
|
$
|
159
|
|
|
2017
|
|
2016
|
|
2015
|
|||
Income taxes at the applicable statutory rate
|
25.0
|
%
|
|
25.0
|
%
|
|
25.0
|
%
|
|
|
|
|
|
|
|||
Ireland operations
|
|
|
|
|
|
|||
Ireland tax on trading income
|
—
|
%
|
|
(0.3
|
)%
|
|
(0.4
|
)%
|
Nondeductible interest expense
|
8.2
|
%
|
|
11.5
|
%
|
|
7.9
|
%
|
|
|
|
|
|
|
|||
Foreign operations
|
|
|
|
|
|
|||
United States operations (earnings taxed at other than
the applicable statutory rate)
|
1.7
|
%
|
|
0.1
|
%
|
|
(0.6
|
)%
|
U.S. federal tax rate change
|
(7.5
|
)%
|
|
—
|
%
|
|
—
|
%
|
U.S. tax on foreign earnings
|
4.8
|
%
|
|
—
|
%
|
|
—
|
%
|
U.S. foreign tax credit
|
(3.9
|
)%
|
|
0.6
|
%
|
|
(0.8
|
)%
|
Credit for research activities
|
(0.5
|
)%
|
|
(0.8
|
)%
|
|
(0.8
|
)%
|
U.S. Other - net
|
3.2
|
%
|
|
2.5
|
%
|
|
5.4
|
%
|
Non-U.S. operations (earnings taxed at other than
the applicable statutory tax rate)
|
(22.9
|
)%
|
|
(26.8
|
)%
|
|
(25.1
|
)%
|
Non-U.S. operations - other items
|
0.4
|
%
|
|
0.9
|
%
|
|
(0.5
|
)%
|
|
|
|
|
|
|
|||
Worldwide operations
|
|
|
|
|
|
|||
Adjustments to tax liabilities
|
(1.8
|
)%
|
|
(2.5
|
)%
|
|
(1.4
|
)%
|
Adjustments to valuation allowances
|
4.6
|
%
|
|
(0.8
|
)%
|
|
(1.2
|
)%
|
Effective income tax expense rate
|
11.3
|
%
|
|
9.4
|
%
|
|
7.5
|
%
|
2017
|
$
|
288
|
|
2016
|
272
|
|
|
2015
|
302
|
|
|
2017
|
|
2016
|
||||
|
Noncurrent assets and liabilities
|
|
Noncurrent assets and liabilities
|
||||
Accruals and other adjustments
|
|
|
|
||||
Employee benefits
|
$
|
430
|
|
|
$
|
761
|
|
Depreciation and amortization
|
(1,324
|
)
|
|
(1,823
|
)
|
||
Other accruals and adjustments
|
380
|
|
|
761
|
|
||
Ireland income tax loss carryforwards
|
1
|
|
|
1
|
|
||
Foreign income tax loss carryforwards
|
1,962
|
|
|
1,796
|
|
||
Foreign income tax credit carryforwards
|
404
|
|
|
277
|
|
||
Valuation allowance for income tax loss and income tax
credit carryforwards
|
(1,992
|
)
|
|
(1,728
|
)
|
||
Other valuation allowances
|
(146
|
)
|
|
(41
|
)
|
||
Total deferred income taxes
|
$
|
(285
|
)
|
|
$
|
4
|
|
|
2018
through
2022
|
|
2023
through
2027
|
|
2028
through
2032
|
|
2033
through
2037
|
|
Not
subject to
expiration
|
|
Valuation
allowance
|
||||||||||||
Ireland income tax loss carryforwards
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
8
|
|
|
$
|
—
|
|
Ireland deferred income tax assets for income tax loss carryforwards
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
(1
|
)
|
|
2018
through 2022 |
|
2023
through 2027 |
|
2028
through 2032 |
|
2033
through 2037 |
|
Not
subject to
expiration
|
|
Valuation
allowance
|
||||||||||||
Foreign income tax loss carryforwards
|
$
|
918
|
|
|
$
|
7,528
|
|
|
$
|
14
|
|
|
$
|
545
|
|
|
$
|
4,047
|
|
|
$
|
—
|
|
Foreign deferred income tax assets for income tax loss carryforwards
|
112
|
|
|
721
|
|
|
14
|
|
|
175
|
|
|
1,047
|
|
|
(1,830
|
)
|
||||||
Foreign deferred income tax assets for income tax loss carryforwards after ASU 2013-11
|
101
|
|
|
715
|
|
|
14
|
|
|
86
|
|
|
1,047
|
|
|
(1,830
|
)
|
||||||
Foreign income tax credit carryforwards
|
86
|
|
|
205
|
|
|
78
|
|
|
115
|
|
|
64
|
|
|
(161
|
)
|
||||||
Foreign income tax credit carryforwards after ASU 2013-11
|
82
|
|
|
168
|
|
|
27
|
|
|
94
|
|
|
33
|
|
|
(161
|
)
|
|
2017
|
|
2016
|
|
2015
|
||||||
Balance at January 1
|
$
|
629
|
|
|
$
|
584
|
|
|
$
|
493
|
|
Increases and decreases as a result of positions taken during prior years
|
|
|
|
|
|
||||||
Transfers from valuation allowances
|
—
|
|
|
—
|
|
|
—
|
|
|||
Other increases, including currency translation
|
10
|
|
|
21
|
|
|
34
|
|
|||
Other decreases, including currency translation
|
(30
|
)
|
|
(24
|
)
|
|
(34
|
)
|
|||
Balances related to acquired businesses
|
—
|
|
|
—
|
|
|
(1
|
)
|
|||
Increases as a result of positions taken during the current year
|
162
|
|
|
90
|
|
|
109
|
|
|||
Decreases relating to settlements with tax authorities
|
(10
|
)
|
|
(19
|
)
|
|
—
|
|
|||
Decreases as a result of a lapse of the applicable statute of limitations
|
(26
|
)
|
|
(23
|
)
|
|
(17
|
)
|
|||
Balance at December 31
|
$
|
735
|
|
|
$
|
629
|
|
|
$
|
584
|
|
Note 10.
|
EATON SHAREHOLDERS' EQUITY
|
|
2017
|
|
2016
|
|
2015
|
||||||||||||||||||
|
Pre-tax
|
|
After-tax
|
|
Pre-tax
|
|
After-tax
|
|
Pre-tax
|
|
After-tax
|
||||||||||||
Currency translation and related hedging instruments
|
$
|
800
|
|
|
$
|
807
|
|
|
$
|
(562
|
)
|
|
$
|
(570
|
)
|
|
$
|
(1,080
|
)
|
|
$
|
(1,078
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Pensions and other postretirement benefits
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Prior service credit (cost) arising during the year
|
(1
|
)
|
|
—
|
|
|
(2
|
)
|
|
(2
|
)
|
|
1
|
|
|
1
|
|
||||||
Net gain (loss) arising during the year
|
215
|
|
|
169
|
|
|
(247
|
)
|
|
(197
|
)
|
|
(123
|
)
|
|
(89
|
)
|
||||||
Currency translation
|
(67
|
)
|
|
(53
|
)
|
|
74
|
|
|
62
|
|
|
62
|
|
|
46
|
|
||||||
Other
|
—
|
|
|
(5
|
)
|
|
—
|
|
|
(2
|
)
|
|
—
|
|
|
(3
|
)
|
||||||
Amortization of actuarial loss and prior service cost
reclassified to earnings
|
188
|
|
|
130
|
|
|
201
|
|
|
133
|
|
|
237
|
|
|
156
|
|
||||||
|
335
|
|
|
241
|
|
|
26
|
|
|
(6
|
)
|
|
177
|
|
|
111
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cash flow hedges
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Gain (loss) on derivatives designated as cash flow hedges
|
(24
|
)
|
|
(15
|
)
|
|
(21
|
)
|
|
(14
|
)
|
|
20
|
|
|
13
|
|
||||||
Changes in cash flow hedges reclassified to earnings
|
17
|
|
|
11
|
|
|
8
|
|
|
5
|
|
|
(16
|
)
|
|
(10
|
)
|
||||||
Cash flow hedges, net of reclassification adjustments
|
(7
|
)
|
|
(4
|
)
|
|
(13
|
)
|
|
(9
|
)
|
|
4
|
|
|
3
|
|
||||||
Other comprehensive income (loss) attributable to Eaton ordinary shareholders
|
$
|
1,128
|
|
|
$
|
1,044
|
|
|
$
|
(549
|
)
|
|
$
|
(585
|
)
|
|
$
|
(899
|
)
|
|
$
|
(964
|
)
|
|
Currency translation and related hedging instruments
|
|
Pensions and other postretirement benefits
|
|
Cash flow
hedges
|
|
Total
|
||||||||
Balance at December 31, 2016
|
$
|
(3,062
|
)
|
|
$
|
(1,380
|
)
|
|
$
|
(6
|
)
|
|
$
|
(4,448
|
)
|
Other comprehensive income (loss) before
reclassifications
|
807
|
|
|
111
|
|
|
(15
|
)
|
|
903
|
|
||||
Amounts reclassified from Accumulated other
comprehensive loss (income)
|
—
|
|
|
130
|
|
|
11
|
|
|
141
|
|
||||
Net current-period Other comprehensive
income (loss)
|
807
|
|
|
241
|
|
|
(4
|
)
|
|
1,044
|
|
||||
Balance at December 31, 2017
|
$
|
(2,255
|
)
|
|
$
|
(1,139
|
)
|
|
$
|
(10
|
)
|
|
$
|
(3,404
|
)
|
|
|
December 31, 2017
|
|
Consolidated Statements of
Income classification
|
||
Amortization of defined benefit pension and other
postretirement benefits items
|
|
|
|
|
||
Actuarial loss and prior service cost
|
|
$
|
(188
|
)
|
|
1
|
Tax benefit
|
|
58
|
|
|
|
|
Total, net of tax
|
|
(130
|
)
|
|
|
|
|
|
|
|
|
||
Gains and (losses) on cash flow hedges
|
|
|
|
|
||
Currency exchange contracts
|
|
(17
|
)
|
|
Cost of products sold
|
|
Tax benefit
|
|
6
|
|
|
|
|
Total, net of tax
|
|
(11
|
)
|
|
|
|
|
|
|
|
|
||
Total reclassifications for the period
|
|
$
|
(141
|
)
|
|
|
(Shares in millions)
|
2017
|
|
2016*
|
|
2015*
|
||||||
Net income attributable to Eaton ordinary shareholders
|
$
|
2,985
|
|
|
$
|
1,916
|
|
|
$
|
1,972
|
|
|
|
|
|
|
|
||||||
Weighted-average number of ordinary shares outstanding - diluted
|
447.0
|
|
|
456.5
|
|
|
467.1
|
|
|||
Less dilutive effect of equity-based compensation
|
2.5
|
|
|
1.5
|
|
|
1.6
|
|
|||
Weighted-average number of ordinary shares outstanding - basic
|
444.5
|
|
|
455.0
|
|
|
465.5
|
|
|||
|
|
|
|
|
|
||||||
Net income per share attributable to Eaton ordinary shareholders
|
|
|
|
|
|
||||||
Diluted
|
$
|
6.68
|
|
|
$
|
4.20
|
|
|
$
|
4.22
|
|
Basic
|
6.71
|
|
|
4.21
|
|
|
4.23
|
|
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
|
2.6
|
|
|
$
|
57.87
|
|
Granted
|
0.9
|
|
|
72.09
|
|
|
Vested
|
(0.9
|
)
|
|
61.80
|
|
|
Forfeited
|
(0.2
|
)
|
|
61.66
|
|
|
Non-vested at December 31
|
2.4
|
|
|
$
|
62.24
|
|
|
2017
|
|
2016
|
|
2015
|
||||||
Pretax expense for RSUs and RSAs
|
$
|
66
|
|
|
$
|
65
|
|
|
$
|
68
|
|
After-tax expense for RSUs and RSAs
|
43
|
|
|
42
|
|
|
44
|
|
|||
Fair value of vested RSUs and RSAs
|
73
|
|
|
71
|
|
|
110
|
|
|
|
2017
|
|
2016
|
||||
Expected volatility
|
|
24
|
%
|
|
24
|
%
|
||
Risk-free interest rate
|
|
1.46
|
%
|
|
0.88
|
%
|
||
Weighted-average fair value of PSUs granted
|
|
$
|
80.07
|
|
|
$
|
76.41
|
|
(Performance share units in millions)
|
|
Number of performance
share units |
|
Weighted-average fair
value per unit |
|||
Non-vested at January 1
|
|
0.5
|
|
|
$
|
76.41
|
|
Granted
1
|
|
0.4
|
|
|
80.07
|
|
|
Vested
|
|
—
|
|
|
—
|
|
|
Forfeited
|
|
(0.1
|
)
|
|
77.90
|
|
|
Non-vested at December 31
|
|
0.8
|
|
|
$
|
77.97
|
|
(Performance share units in millions)
|
|
Number of performance
share units |
|
Weighted-average fair
value per unit |
|||
Non-vested at January 1
|
|
0.7
|
|
|
$
|
68.23
|
|
Granted
|
|
—
|
|
|
—
|
|
|
Vested
|
|
(0.1
|
)
|
|
71.72
|
|
|
Forfeited
|
|
(0.5
|
)
|
|
71.72
|
|
|
Non-vested at December 31
|
|
0.1
|
|
|
$
|
56.55
|
|
|
|
2017
|
|
2016
|
|
2015
|
||||||
Pretax expense for PSUs
|
|
$
|
22
|
|
|
$
|
13
|
|
|
$
|
2
|
|
After-tax expense for PSUs
|
|
13
|
|
|
8
|
|
|
1
|
|
|
2017
|
|
2016
|
|
2015
|
||||||
Expected volatility
|
27
|
%
|
|
27
|
%
|
|
29
|
%
|
|||
Expected option life in years
|
6.6
|
|
|
5.5
|
|
|
5.5
|
|
|||
Expected dividend yield
|
2.8
|
%
|
|
2.5
|
%
|
|
2.6
|
%
|
|||
Risk-free interest rate
|
1.8 to 2.1%
|
|
|
1.2 to 1.5%
|
|
|
1.6 to 1.5%
|
|
|||
Weighted-average fair value of stock options granted
|
$
|
15.11
|
|
|
$
|
11.80
|
|
|
$
|
15.25
|
|
(Options in millions)
|
Weighted-average
exercise price per option
|
|
Options
|
|
Weighted-average
remaining
contractual life
in years
|
|
Aggregate
intrinsic
value
|
|||||
Outstanding at January 1, 2017
|
$
|
56.75
|
|
|
5.5
|
|
|
|
|
|
||
Granted
|
71.89
|
|
|
0.7
|
|
|
|
|
|
|||
Exercised
|
46.31
|
|
|
(1.5
|
)
|
|
|
|
|
|||
Forfeited and canceled
|
59.23
|
|
|
(0.1
|
)
|
|
|
|
|
|||
Outstanding at December 31, 2017
|
$
|
62.43
|
|
|
4.6
|
|
|
6.3
|
|
$
|
77.3
|
|
|
|
|
|
|
|
|
|
|||||
Exercisable at December 31, 2017
|
$
|
61.06
|
|
|
2.9
|
|
|
5.1
|
|
$
|
52.1
|
|
Reserved for future grants at December 31, 2017
|
|
|
15.0
|
|
|
|
|
|
|
2017
|
|
2016
|
|
2015
|
||||||
Pretax expense for stock options
|
$
|
11
|
|
|
$
|
14
|
|
|
$
|
12
|
|
After-tax expense for stock options
|
8
|
|
|
9
|
|
|
8
|
|
|||
Proceeds from stock options exercised
|
66
|
|
|
74
|
|
|
52
|
|
|||
Income tax benefit related to stock options exercised
|
|
|
|
|
|
||||||
Tax benefit classified in operating activities in the Consolidated
Statements of Cash Flows
|
13
|
|
|
5
|
|
|
4
|
|
|||
Excess tax benefit classified in financing activities in the
Consolidated Statements of Cash Flows
|
—
|
|
|
1
|
|
|
1
|
|
|||
Intrinsic value of stock options exercised
|
41
|
|
|
42
|
|
|
44
|
|
|||
Total fair value of stock options vested
|
$
|
11
|
|
|
$
|
14
|
|
|
$
|
12
|
|
|
|
|
|
|
|
||||||
Stock options exercised, in millions of options
|
1.5
|
|
|
1.9
|
|
|
1.4
|
|
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)
|
||||||||
2017
|
|
|
|
|
|
|
|
||||||||
Cash
|
$
|
561
|
|
|
$
|
561
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Short-term investments
|
534
|
|
|
534
|
|
|
—
|
|
|
—
|
|
||||
Net derivative contracts
|
36
|
|
|
—
|
|
|
36
|
|
|
—
|
|
||||
|
|
|
|
|
|
|
|
||||||||
2016
|
|
|
|
|
|
|
|
||||||||
Cash
|
$
|
543
|
|
|
$
|
543
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Short-term investments
|
203
|
|
|
203
|
|
|
—
|
|
|
—
|
|
||||
Net derivative contracts
|
(3
|
)
|
|
—
|
|
|
(3
|
)
|
|
—
|
|
|
2017
|
|
2016
|
||||
Time deposits, certificates of deposit and demand deposits with banks
|
$
|
435
|
|
|
$
|
149
|
|
Money market investments
|
99
|
|
|
54
|
|
||
Total short-term investments
|
$
|
534
|
|
|
$
|
203
|
|
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
|
||
$
|
415
|
|
|
5.60%
|
|
4.59%
|
|
6 month LIBOR + 3.18%
|
300
|
|
|
6.95%
|
|
6.31%
|
|
3 month LIBOR + 5.07%
|
|
25
|
|
|
8.88%
|
|
5.24%
|
|
6 month LIBOR + 3.84%
|
|
150
|
|
|
3.88%
|
|
3.22%
|
|
1 month LIBOR + 2.12%
|
|
275
|
|
|
3.47%
|
|
2.84%
|
|
1 month LIBOR + 1.74%
|
|
100
|
|
|
8.10%
|
|
7.08%
|
|
1 month LIBOR + 5.90%
|
|
1,400
|
|
|
2.75%
|
|
1.66%
|
|
1 month LIBOR + 0.58%
|
|
200
|
|
|
3.68%
|
|
2.17%
|
|
1 month LIBOR + 1.07%
|
|
25
|
|
|
7.63%
|
|
3.87%
|
|
6 month LIBOR + 2.48%
|
|
50
|
|
|
7.65%
|
|
3.98%
|
|
6 month LIBOR + 2.57%
|
|
25
|
|
|
5.45%
|
|
1.68%
|
|
6 month LIBOR + 0.28%
|
|
Notional
amount
|
|
Other
current
assets
|
|
Other
noncurrent
assets
|
|
Other
current
liabilities
|
|
Other
noncurrent
liabilities
|
|
Type of
hedge
|
|
Term
|
||||||||||
December 31, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Derivatives designated as hedges
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Fixed-to-floating interest rate swaps
|
$
|
2,965
|
|
|
$
|
1
|
|
|
$
|
41
|
|
|
$
|
—
|
|
|
$
|
17
|
|
|
Fair value
|
|
6 months to 17 years
|
Currency exchange contracts
|
924
|
|
|
7
|
|
|
7
|
|
|
22
|
|
|
2
|
|
|
Cash flow
|
|
1 to 36 months
|
|||||
Total
|
|
|
$
|
8
|
|
|
$
|
48
|
|
|
$
|
22
|
|
|
$
|
19
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Derivatives not designated as hedges
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Currency exchange contracts
|
$
|
3,719
|
|
|
$
|
39
|
|
|
|
|
$
|
19
|
|
|
|
|
|
|
1 to 12 months
|
||||
Commodity contracts
|
13
|
|
|
1
|
|
|
|
|
—
|
|
|
|
|
|
|
1 to 12 months
|
|||||||
Total
|
|
|
$
|
40
|
|
|
|
|
$
|
19
|
|
|
|
|
|
|
|
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
|
|
|
|
|
|
|
|
|
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
|
||||||||||||
|
2017
|
|
2016
|
|
|
|
2017
|
|
2016
|
||||||||
Derivatives designated as cash flow hedges
|
|
|
|
|
|
|
|
|
|
||||||||
Forward starting floating-to-fixed interest rate swaps
|
$
|
(15
|
)
|
|
$
|
18
|
|
|
Interest expense - net
|
|
$
|
—
|
|
|
$
|
—
|
|
Interest rate locks
|
(9
|
)
|
|
—
|
|
|
Interest expense - net
|
|
—
|
|
|
—
|
|
||||
Currency exchange contracts
|
—
|
|
|
(39
|
)
|
|
Cost of products sold
|
|
(17
|
)
|
|
(8
|
)
|
||||
Total
|
$
|
(24
|
)
|
|
$
|
(21
|
)
|
|
|
|
$
|
(17
|
)
|
|
$
|
(8
|
)
|
|
2017
|
|
2016
|
||||
Derivatives designated as fair value hedges
|
|
|
|
||||
Fixed-to-floating interest rate swaps
|
$
|
(33
|
)
|
|
$
|
(36
|
)
|
Related long-term debt converted to floating interest
rates by interest rate swaps
|
33
|
|
|
36
|
|
||
|
$
|
—
|
|
|
$
|
—
|
|
Note 14.
|
ACCOUNTS RECEIVABLE AND INVENTORY
|
|
2017
|
|
2016
As adjusted
|
||||
Raw materials
|
$
|
953
|
|
|
$
|
879
|
|
Work-in-process
|
471
|
|
|
395
|
|
||
Finished goods
|
1,196
|
|
|
1,072
|
|
||
Total inventory
|
$
|
2,620
|
|
|
$
|
2,346
|
|
|
|
|
December 31, 2017
|
|
|
|
December 31, 2016
|
|
December 31, 2015
|
||||||||||||||||||||||||||||||||
(In millions except for per share data)
|
|
As computed under LIFO
|
|
As reported under FIFO
|
|
Effect of change
|
|
As originally reported
|
|
As adjusted
|
|
Effect of change
|
|
As originally reported
|
|
As adjusted
|
|
Effect of change
|
|||||||||||||||||||||||
|
|
|
TCJA
|
|
Other
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||
Consolidated Statements of Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
|
Cost of products sold
|
|
$
|
13,770
|
|
|
$
|
13,756
|
|
|
$
|
—
|
|
|
$
|
(14
|
)
|
|
$
|
13,400
|
|
|
$
|
13,409
|
|
|
$
|
9
|
|
|
$
|
14,292
|
|
|
$
|
14,304
|
|
|
$
|
12
|
|
|
Income before income taxes
|
|
3,354
|
|
|
3,368
|
|
|
—
|
|
|
14
|
|
|
2,127
|
|
|
2,118
|
|
|
(9
|
)
|
|
2,145
|
|
|
2,133
|
|
|
(12
|
)
|
||||||||||
|
Income tax expense
|
|
391
|
|
|
382
|
|
|
(14
|
)
|
|
5
|
|
|
202
|
|
|
199
|
|
|
(3
|
)
|
|
164
|
|
|
159
|
|
|
(5
|
)
|
||||||||||
|
Net income
|
|
2,963
|
|
|
2,986
|
|
|
14
|
|
|
9
|
|
|
1,925
|
|
|
1,919
|
|
|
(6
|
)
|
|
1,981
|
|
|
1,974
|
|
|
(7
|
)
|
||||||||||
|
Net income attributable to Eaton ordinary shareholders
|
|
$
|
2,962
|
|
|
$
|
2,985
|
|
|
$
|
14
|
|
|
$
|
9
|
|
|
$
|
1,922
|
|
|
$
|
1,916
|
|
|
$
|
(6
|
)
|
|
$
|
1,979
|
|
|
$
|
1,972
|
|
|
$
|
(7
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Net income per ordinary share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
|
Diluted
|
|
$
|
6.63
|
|
|
$
|
6.68
|
|
|
$
|
0.03
|
|
|
$
|
0.02
|
|
|
$
|
4.21
|
|
|
$
|
4.20
|
|
|
$
|
(0.01
|
)
|
|
$
|
4.23
|
|
|
$
|
4.22
|
|
|
$
|
(0.01
|
)
|
|
Basic
|
|
$
|
6.66
|
|
|
$
|
6.71
|
|
|
$
|
0.03
|
|
|
$
|
0.02
|
|
|
$
|
4.22
|
|
|
$
|
4.21
|
|
|
$
|
(0.01
|
)
|
|
$
|
4.25
|
|
|
$
|
4.23
|
|
|
$
|
(0.02
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Consolidated Statements of Comprehensive Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
|
Net income
|
|
$
|
2,963
|
|
|
$
|
2,986
|
|
|
$
|
14
|
|
|
$
|
9
|
|
|
$
|
1,925
|
|
|
$
|
1,919
|
|
|
$
|
(6
|
)
|
|
$
|
1,981
|
|
|
$
|
1,974
|
|
|
$
|
(7
|
)
|
|
Net income attributable to Eaton ordinary shareholders
|
|
2,962
|
|
|
2,985
|
|
|
14
|
|
|
9
|
|
|
1,922
|
|
|
1,916
|
|
|
(6
|
)
|
|
1,979
|
|
|
1,972
|
|
|
(7
|
)
|
||||||||||
|
Total comprehensive income attributable to Eaton ordinary shareholders
|
|
$
|
4,006
|
|
|
$
|
4,029
|
|
|
$
|
14
|
|
|
$
|
9
|
|
|
$
|
1,337
|
|
|
$
|
1,331
|
|
|
$
|
(6
|
)
|
|
$
|
1,015
|
|
|
$
|
1,008
|
|
|
$
|
(7
|
)
|
|
|
|
December 31, 2017
|
|
December 31, 2016
|
|
December 31, 2015
|
||||||||||||||||||||||||||||||
(In millions except for per share data)
|
|
As computed under LIFO
|
|
As reported under FIFO
|
|
Effect of change
|
|
As originally reported
|
|
As adjusted
|
|
Effect of change
|
|
As originally reported
|
|
As adjusted
|
|
Effect of change
|
|||||||||||||||||||
Consolidated Balance Sheets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
|
Inventory
|
|
$
|
2,514
|
|
|
$
|
2,620
|
|
|
$
|
106
|
|
|
$
|
2,254
|
|
|
$
|
2,346
|
|
|
$
|
92
|
|
|
|
|
|
|
|
||||||
|
Deferred income taxes - noncurrent asset
|
|
253
|
|
|
253
|
|
|
—
|
|
|
360
|
|
|
325
|
|
|
(35
|
)
|
|
|
|
|
|
|
||||||||||||
|
Deferred income taxes - noncurrent liability
|
|
512
|
|
|
538
|
|
|
26
|
|
|
321
|
|
|
321
|
|
|
—
|
|
|
|
|
|
|
|
||||||||||||
|
Retained earnings
|
|
$
|
8,589
|
|
|
$
|
8,669
|
|
|
$
|
80
|
|
|
$
|
7,498
|
|
|
$
|
7,555
|
|
|
$
|
57
|
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Consolidated Statements of Cash Flows
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
|
Net income
|
|
$
|
2,963
|
|
|
$
|
2,986
|
|
|
$
|
23
|
|
|
$
|
1,925
|
|
|
$
|
1,919
|
|
|
$
|
(6
|
)
|
|
$
|
1,981
|
|
|
$
|
1,974
|
|
|
$
|
(7
|
)
|
|
Deferred income taxes
|
|
(197
|
)
|
|
(206
|
)
|
|
(9
|
)
|
|
(80
|
)
|
|
(83
|
)
|
|
(3
|
)
|
|
(100
|
)
|
|
(105
|
)
|
|
(5
|
)
|
|||||||||
|
Inventory
|
|
$
|
(188
|
)
|
|
$
|
(202
|
)
|
|
$
|
(14
|
)
|
|
$
|
25
|
|
|
$
|
34
|
|
|
$
|
9
|
|
|
$
|
(20
|
)
|
|
$
|
(8
|
)
|
|
$
|
12
|
|
|
(unaudited)
|
|
Three months ended
|
||||||||||||||||||||||||||||||||||
|
|
|
March 30, 2017
|
|
June 30, 2017
|
|
September 30, 2017
|
||||||||||||||||||||||||||||||
(In millions except for per share data)
|
|
As originally reported
|
|
As adjusted
|
|
Effect of change
|
|
As originally reported
|
|
As adjusted
|
|
Effect of change
|
|
As originally reported
|
|
As adjusted
|
|
Effect of change
|
|||||||||||||||||||
Consolidated Statements of Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
|
Cost of products sold
|
|
$
|
3,310
|
|
|
$
|
3,307
|
|
|
$
|
(3
|
)
|
|
$
|
3,450
|
|
|
$
|
3,448
|
|
|
$
|
(2
|
)
|
|
$
|
3,469
|
|
|
$
|
3,466
|
|
|
$
|
(3
|
)
|
|
Income before income taxes
|
|
464
|
|
|
467
|
|
|
3
|
|
|
570
|
|
|
572
|
|
|
2
|
|
|
1,691
|
|
|
1,694
|
|
|
3
|
|
|||||||||
|
Income tax expense
|
|
32
|
|
|
33
|
|
|
1
|
|
|
54
|
|
|
55
|
|
|
1
|
|
|
292
|
|
|
293
|
|
|
1
|
|
|||||||||
|
Net income
|
|
432
|
|
|
434
|
|
|
2
|
|
|
516
|
|
|
517
|
|
|
1
|
|
|
1,399
|
|
|
1,401
|
|
|
2
|
|
|||||||||
|
Net income attributable to Eaton ordinary shareholders
|
|
$
|
432
|
|
|
$
|
434
|
|
|
$
|
2
|
|
|
$
|
515
|
|
|
$
|
516
|
|
|
$
|
1
|
|
|
$
|
1,399
|
|
|
$
|
1,401
|
|
|
$
|
2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Net income per ordinary share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
|
Diluted
|
|
$
|
0.96
|
|
|
$
|
0.96
|
|
|
$
|
—
|
|
|
$
|
1.15
|
|
|
$
|
1.15
|
|
|
$
|
—
|
|
|
$
|
3.14
|
|
|
$
|
3.14
|
|
|
$
|
—
|
|
|
Basic
|
|
$
|
0.96
|
|
|
$
|
0.97
|
|
|
$
|
0.01
|
|
|
$
|
1.15
|
|
|
$
|
1.16
|
|
|
$
|
0.01
|
|
|
$
|
3.16
|
|
|
$
|
3.16
|
|
|
$
|
—
|
|
|
(unaudited)
|
|
Three months ended
|
||||||||||||||||||||||||||||||||||
|
|
|
March 30, 2016
|
|
June 30, 2016
|
|
September 30, 2016
|
||||||||||||||||||||||||||||||
(In millions except for per share data)
|
|
As originally reported
|
|
As adjusted
|
|
Effect of change
|
|
As originally reported
|
|
As adjusted
|
|
Effect of change
|
|
As originally reported
|
|
As adjusted
|
|
Effect of change
|
|||||||||||||||||||
Consolidated Statements of Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
|
Cost of products sold
|
|
$
|
3,291
|
|
|
$
|
3,294
|
|
|
$
|
3
|
|
|
$
|
3,419
|
|
|
$
|
3,422
|
|
|
$
|
3
|
|
|
$
|
3,371
|
|
|
$
|
3,374
|
|
|
$
|
3
|
|
|
Income before income taxes
|
|
442
|
|
|
439
|
|
|
(3
|
)
|
|
553
|
|
|
550
|
|
|
(3
|
)
|
|
573
|
|
|
570
|
|
|
(3
|
)
|
|||||||||
|
Income tax expense
|
|
39
|
|
|
38
|
|
|
(1
|
)
|
|
61
|
|
|
60
|
|
|
(1
|
)
|
|
51
|
|
|
50
|
|
|
(1
|
)
|
|||||||||
|
Net income
|
|
403
|
|
|
401
|
|
|
(2
|
)
|
|
492
|
|
|
490
|
|
|
(2
|
)
|
|
522
|
|
|
520
|
|
|
(2
|
)
|
|||||||||
|
Net income attributable to Eaton ordinary shareholders
|
|
$
|
404
|
|
|
$
|
402
|
|
|
$
|
(2
|
)
|
|
$
|
491
|
|
|
$
|
489
|
|
|
$
|
(2
|
)
|
|
$
|
523
|
|
|
$
|
521
|
|
|
$
|
(2
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Net income per ordinary share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
|
Diluted
|
|
$
|
0.88
|
|
|
$
|
0.87
|
|
|
$
|
(0.01
|
)
|
|
$
|
1.07
|
|
|
$
|
1.07
|
|
|
$
|
—
|
|
|
$
|
1.15
|
|
|
$
|
1.14
|
|
|
$
|
(0.01
|
)
|
|
Basic
|
|
$
|
0.88
|
|
|
$
|
0.88
|
|
|
$
|
—
|
|
|
$
|
1.08
|
|
|
$
|
1.07
|
|
|
$
|
(0.01
|
)
|
|
$
|
1.15
|
|
|
$
|
1.15
|
|
|
$
|
—
|
|
Note 15.
|
BUSINESS SEGMENT AND GEOGRAPHIC REGION INFORMATION
|
|
2017
|
|
2016
|
|
2015
|
||||||
Net sales
|
|
|
|
|
|
||||||
Electrical Products
|
$
|
7,193
|
|
|
$
|
6,957
|
|
|
$
|
6,976
|
|
Electrical Systems and Services
|
5,666
|
|
|
5,662
|
|
|
5,931
|
|
|||
Hydraulics
|
2,468
|
|
|
2,222
|
|
|
2,459
|
|
|||
Aerospace
|
1,744
|
|
|
1,753
|
|
|
1,807
|
|
|||
Vehicle
|
3,333
|
|
|
3,153
|
|
|
3,682
|
|
|||
Total net sales
|
$
|
20,404
|
|
|
$
|
19,747
|
|
|
$
|
20,855
|
|
|
|
|
|
|
|
||||||
Segment operating profit
|
|
|
|
|
|
||||||
Electrical Products
|
$
|
1,287
|
|
|
$
|
1,240
|
|
|
$
|
1,156
|
|
Electrical Systems and Services
|
770
|
|
|
711
|
|
|
776
|
|
|||
Hydraulics
|
288
|
|
|
198
|
|
|
246
|
|
|||
Aerospace
|
332
|
|
|
335
|
|
|
310
|
|
|||
Vehicle
|
537
|
|
|
474
|
|
|
645
|
|
|||
Total segment operating profit
|
3,214
|
|
|
2,958
|
|
|
3,133
|
|
|||
|
|
|
|
|
|
||||||
Corporate
|
|
|
|
|
|
||||||
Amortization of intangible assets
|
(388
|
)
|
|
(392
|
)
|
|
(406
|
)
|
|||
Interest expense - net
|
(246
|
)
|
|
(233
|
)
|
|
(232
|
)
|
|||
Pension and other postretirement benefits expense
|
(45
|
)
|
|
(60
|
)
|
|
(130
|
)
|
|||
Gain on sale of business
|
1,077
|
|
|
—
|
|
|
—
|
|
|||
Other corporate expense - net*
|
(244
|
)
|
|
(155
|
)
|
|
(232
|
)
|
|||
Income before income taxes*
|
3,368
|
|
|
2,118
|
|
|
2,133
|
|
|||
Income tax expense*
|
382
|
|
|
199
|
|
|
159
|
|
|||
Net income*
|
2,986
|
|
|
1,919
|
|
|
1,974
|
|
|||
Less net income for noncontrolling interests
|
(1
|
)
|
|
(3
|
)
|
|
(2
|
)
|
|||
Net income attributable to Eaton ordinary shareholders*
|
$
|
2,985
|
|
|
$
|
1,916
|
|
|
$
|
1,972
|
|
|
2017
|
|
2016
|
|
2015
|
||||||
Electrical Products
|
$
|
4
|
|
|
$
|
3
|
|
|
$
|
25
|
|
Electrical Systems and Services
|
—
|
|
|
1
|
|
|
15
|
|
|||
Hydraulics
|
—
|
|
|
—
|
|
|
2
|
|
|||
Total
|
$
|
4
|
|
|
$
|
4
|
|
|
$
|
42
|
|
|
2017
|
|
2016
|
|
2015
|
||||||
Net sales
|
|
|
|
|
|
||||||
United States
|
$
|
11,222
|
|
|
$
|
10,937
|
|
|
$
|
11,396
|
|
Canada
|
942
|
|
|
898
|
|
|
969
|
|
|||
Latin America
|
1,485
|
|
|
1,448
|
|
|
1,726
|
|
|||
Europe
|
4,394
|
|
|
4,228
|
|
|
4,379
|
|
|||
Asia Pacific
|
2,361
|
|
|
2,236
|
|
|
2,385
|
|
|||
Total
|
$
|
20,404
|
|
|
$
|
19,747
|
|
|
$
|
20,855
|
|
|
|
|
|
|
|
||||||
Long-lived assets
|
|
|
|
|
|
||||||
United States
|
$
|
1,872
|
|
|
$
|
1,924
|
|
|
$
|
1,982
|
|
Canada
|
20
|
|
|
19
|
|
|
19
|
|
|||
Latin America
|
290
|
|
|
281
|
|
|
243
|
|
|||
Europe
|
769
|
|
|
681
|
|
|
734
|
|
|||
Asia Pacific
|
551
|
|
|
538
|
|
|
587
|
|
|||
Total
|
$
|
3,502
|
|
|
$
|
3,443
|
|
|
$
|
3,565
|
|
Note 16.
|
CONDENSED CONSOLIDATING FINANCIAL STATEMENTS
|
CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME
YEAR ENDED DECEMBER 31, 2017
|
|||||||||||||||||||||||
|
Eaton
Corporation
plc
|
|
Eaton
Corporation
|
|
Guarantors
|
|
Other
subsidiaries
|
|
Consolidating
adjustments
|
|
Total
|
||||||||||||
Net sales
|
$
|
—
|
|
|
$
|
6,659
|
|
|
$
|
6,563
|
|
|
$
|
12,599
|
|
|
$
|
(5,417
|
)
|
|
$
|
20,404
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cost of products sold
|
—
|
|
|
5,276
|
|
|
4,840
|
|
|
9,054
|
|
|
(5,414
|
)
|
|
13,756
|
|
||||||
Selling and administrative expense
|
136
|
|
|
1,172
|
|
|
759
|
|
|
1,498
|
|
|
—
|
|
|
3,565
|
|
||||||
Research and development expense
|
—
|
|
|
215
|
|
|
207
|
|
|
162
|
|
|
—
|
|
|
584
|
|
||||||
Interest expense (income) - net
|
—
|
|
|
245
|
|
|
21
|
|
|
(21
|
)
|
|
1
|
|
|
246
|
|
||||||
Gain on sale of business
|
—
|
|
|
560
|
|
|
—
|
|
|
517
|
|
|
—
|
|
|
1,077
|
|
||||||
Other expense (income) - net
|
79
|
|
|
9
|
|
|
(70
|
)
|
|
(56
|
)
|
|
—
|
|
|
(38
|
)
|
||||||
Equity in loss (earnings) of
subsidiaries, net of tax
|
(3,644
|
)
|
|
(1,139
|
)
|
|
(4,958
|
)
|
|
(4,665
|
)
|
|
14,406
|
|
|
—
|
|
||||||
Intercompany expense (income) - net
|
444
|
|
|
(561
|
)
|
|
1,197
|
|
|
(1,080
|
)
|
|
—
|
|
|
—
|
|
||||||
Income (loss) before income taxes
|
2,985
|
|
|
2,002
|
|
|
4,567
|
|
|
8,224
|
|
|
(14,410
|
)
|
|
3,368
|
|
||||||
Income tax expense (benefit)
|
—
|
|
|
499
|
|
|
(232
|
)
|
|
115
|
|
|
—
|
|
|
382
|
|
||||||
Net income (loss)
|
2,985
|
|
|
1,503
|
|
|
4,799
|
|
|
8,109
|
|
|
(14,410
|
)
|
|
2,986
|
|
||||||
Less net loss (income) for
noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
(3
|
)
|
|
2
|
|
|
(1
|
)
|
||||||
Net income (loss) attributable to
Eaton ordinary shareholders
|
$
|
2,985
|
|
|
$
|
1,503
|
|
|
$
|
4,799
|
|
|
$
|
8,106
|
|
|
$
|
(14,408
|
)
|
|
$
|
2,985
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Other comprehensive income (loss)
|
1,044
|
|
|
41
|
|
|
1,064
|
|
|
2,192
|
|
|
(3,297
|
)
|
|
1,044
|
|
||||||
Total comprehensive income (loss) attributable to Eaton
ordinary shareholders
|
$
|
4,029
|
|
|
$
|
1,544
|
|
|
$
|
5,863
|
|
|
$
|
10,298
|
|
|
$
|
(17,705
|
)
|
|
$
|
4,029
|
|
CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME
YEAR ENDED DECEMBER 31, 2016
|
|||||||||||||||||||||||
|
Eaton
Corporation
plc
|
|
Eaton
Corporation
|
|
Guarantors
|
|
Other
subsidiaries
|
|
Consolidating
adjustments
|
|
Total
|
||||||||||||
Net sales
|
$
|
—
|
|
|
$
|
6,447
|
|
|
$
|
6,351
|
|
|
$
|
11,961
|
|
|
$
|
(5,012
|
)
|
|
$
|
19,747
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cost of products sold
|
—
|
|
|
5,076
|
|
|
4,697
|
|
|
8,649
|
|
|
(5,013
|
)
|
|
13,409
|
|
||||||
Selling and administrative expense
|
140
|
|
|
1,153
|
|
|
760
|
|
|
1,452
|
|
|
—
|
|
|
3,505
|
|
||||||
Research and development expense
|
—
|
|
|
235
|
|
|
186
|
|
|
168
|
|
|
—
|
|
|
589
|
|
||||||
Interest expense (income) - net
|
—
|
|
|
233
|
|
|
17
|
|
|
(16
|
)
|
|
(1
|
)
|
|
233
|
|
||||||
Other expense (income) - net
|
(35
|
)
|
|
(48
|
)
|
|
43
|
|
|
(67
|
)
|
|
—
|
|
|
(107
|
)
|
||||||
Equity in loss (earnings) of
subsidiaries, net of tax
|
(2,433
|
)
|
|
(770
|
)
|
|
(3,266
|
)
|
|
(2,808
|
)
|
|
9,277
|
|
|
—
|
|
||||||
Intercompany expense (income) - net
|
412
|
|
|
(122
|
)
|
|
1,230
|
|
|
(1,520
|
)
|
|
—
|
|
|
—
|
|
||||||
Income (loss) before income taxes
|
1,916
|
|
|
690
|
|
|
2,684
|
|
|
6,103
|
|
|
(9,275
|
)
|
|
2,118
|
|
||||||
Income tax expense (benefit)
|
—
|
|
|
23
|
|
|
26
|
|
|
149
|
|
|
1
|
|
|
199
|
|
||||||
Net income (loss)
|
1,916
|
|
|
667
|
|
|
2,658
|
|
|
5,954
|
|
|
(9,276
|
)
|
|
1,919
|
|
||||||
Less net loss (income) for
noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
(5
|
)
|
|
2
|
|
|
(3
|
)
|
||||||
Net income (loss) attributable to
Eaton ordinary shareholders
|
$
|
1,916
|
|
|
$
|
667
|
|
|
$
|
2,658
|
|
|
$
|
5,949
|
|
|
$
|
(9,274
|
)
|
|
$
|
1,916
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Other comprehensive income (loss)
|
(585
|
)
|
|
54
|
|
|
(566
|
)
|
|
(1,344
|
)
|
|
1,856
|
|
|
(585
|
)
|
||||||
Total comprehensive income (loss) attributable to Eaton
ordinary shareholders
|
$
|
1,331
|
|
|
$
|
721
|
|
|
$
|
2,092
|
|
|
$
|
4,605
|
|
|
$
|
(7,418
|
)
|
|
$
|
1,331
|
|
CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME
YEAR ENDED DECEMBER 31, 2015
|
|||||||||||||||||||||||
|
Eaton
Corporation
plc
|
|
Eaton
Corporation
|
|
Guarantors
|
|
Other
subsidiaries
|
|
Consolidating
adjustments
|
|
Total
|
||||||||||||
Net sales
|
$
|
—
|
|
|
$
|
6,926
|
|
|
$
|
6,660
|
|
|
$
|
12,531
|
|
|
$
|
(5,262
|
)
|
|
$
|
20,855
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cost of products sold
|
—
|
|
|
5,518
|
|
|
5,041
|
|
|
8,978
|
|
|
(5,233
|
)
|
|
14,304
|
|
||||||
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
|
(2,449
|
)
|
|
(821
|
)
|
|
(3,221
|
)
|
|
(2,761
|
)
|
|
9,252
|
|
|
—
|
|
||||||
Intercompany expense (income) - net
|
336
|
|
|
(384
|
)
|
|
1,218
|
|
|
(1,170
|
)
|
|
—
|
|
|
—
|
|
||||||
Income (loss) before income taxes
|
1,972
|
|
|
902
|
|
|
2,642
|
|
|
5,900
|
|
|
(9,283
|
)
|
|
2,133
|
|
||||||
Income tax expense (benefit)
|
—
|
|
|
87
|
|
|
(69
|
)
|
|
152
|
|
|
(11
|
)
|
|
159
|
|
||||||
Net income (loss)
|
1,972
|
|
|
815
|
|
|
2,711
|
|
|
5,748
|
|
|
(9,272
|
)
|
|
1,974
|
|
||||||
Less net loss (income) for
noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
(3
|
)
|
|
1
|
|
|
(2
|
)
|
||||||
Net income (loss) attributable to
Eaton ordinary shareholders
|
$
|
1,972
|
|
|
$
|
815
|
|
|
$
|
2,711
|
|
|
$
|
5,745
|
|
|
$
|
(9,271
|
)
|
|
$
|
1,972
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Other comprehensive income (loss)
|
(964
|
)
|
|
5
|
|
|
(951
|
)
|
|
(2,000
|
)
|
|
2,946
|
|
|
(964
|
)
|
||||||
Total comprehensive income (loss) attributable to Eaton
ordinary shareholders
|
$
|
1,008
|
|
|
$
|
820
|
|
|
$
|
1,760
|
|
|
$
|
3,745
|
|
|
$
|
(6,325
|
)
|
|
$
|
1,008
|
|
CONDENSED CONSOLIDATING BALANCE SHEETS
DECEMBER 31, 2017
|
|||||||||||||||||||||||
|
Eaton
Corporation
plc
|
|
Eaton
Corporation
|
|
Guarantors
|
|
Other
subsidiaries
|
|
Consolidating
adjustments
|
|
Total
|
||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Current assets
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cash
|
$
|
—
|
|
|
$
|
183
|
|
|
$
|
12
|
|
|
$
|
366
|
|
|
$
|
—
|
|
|
$
|
561
|
|
Short-term investments
|
—
|
|
|
—
|
|
|
—
|
|
|
534
|
|
|
—
|
|
|
534
|
|
||||||
Accounts receivable - net
|
—
|
|
|
482
|
|
|
1,317
|
|
|
2,144
|
|
|
—
|
|
|
3,943
|
|
||||||
Intercompany accounts receivable
|
8
|
|
|
2,865
|
|
|
5,146
|
|
|
2,741
|
|
|
(10,760
|
)
|
|
—
|
|
||||||
Inventory
|
—
|
|
|
473
|
|
|
692
|
|
|
1,537
|
|
|
(82
|
)
|
|
2,620
|
|
||||||
Prepaid expenses and other
current assets
|
—
|
|
|
229
|
|
|
145
|
|
|
277
|
|
|
28
|
|
|
679
|
|
||||||
Total current assets
|
8
|
|
|
4,232
|
|
|
7,312
|
|
|
7,599
|
|
|
(10,814
|
)
|
|
8,337
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Property, plant and equipment - net
|
—
|
|
|
835
|
|
|
684
|
|
|
1,983
|
|
|
—
|
|
|
3,502
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Other noncurrent assets
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Goodwill
|
—
|
|
|
1,307
|
|
|
6,293
|
|
|
5,968
|
|
|
—
|
|
|
13,568
|
|
||||||
Other intangible assets
|
—
|
|
|
138
|
|
|
3,002
|
|
|
2,125
|
|
|
—
|
|
|
5,265
|
|
||||||
Deferred income taxes
|
—
|
|
|
356
|
|
|
—
|
|
|
221
|
|
|
(324
|
)
|
|
253
|
|
||||||
Investment in subsidiaries
|
15,045
|
|
|
15,439
|
|
|
87,919
|
|
|
39,527
|
|
|
(157,930
|
)
|
|
—
|
|
||||||
Intercompany loans receivable
|
3,122
|
|
|
7,104
|
|
|
2,735
|
|
|
61,225
|
|
|
(74,186
|
)
|
|
—
|
|
||||||
Other assets
|
—
|
|
|
748
|
|
|
163
|
|
|
787
|
|
|
—
|
|
|
1,698
|
|
||||||
Total assets
|
$
|
18,175
|
|
|
$
|
30,159
|
|
|
$
|
108,108
|
|
|
$
|
119,435
|
|
|
$
|
(243,254
|
)
|
|
$
|
32,623
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Liabilities and shareholders’
equity
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Current liabilities
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Short-term debt
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
6
|
|
|
$
|
—
|
|
|
$
|
6
|
|
Current portion of long-term debt
|
—
|
|
|
542
|
|
|
35
|
|
|
1
|
|
|
—
|
|
|
578
|
|
||||||
Accounts payable
|
—
|
|
|
533
|
|
|
313
|
|
|
1,320
|
|
|
—
|
|
|
2,166
|
|
||||||
Intercompany accounts payable
|
4
|
|
|
4,920
|
|
|
4,405
|
|
|
1,431
|
|
|
(10,760
|
)
|
|
—
|
|
||||||
Accrued compensation
|
—
|
|
|
128
|
|
|
63
|
|
|
262
|
|
|
—
|
|
|
453
|
|
||||||
Other current liabilities
|
1
|
|
|
564
|
|
|
308
|
|
|
1,000
|
|
|
(1
|
)
|
|
1,872
|
|
||||||
Total current liabilities
|
5
|
|
|
6,687
|
|
|
5,124
|
|
|
4,020
|
|
|
(10,761
|
)
|
|
5,075
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Noncurrent liabilities
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Long-term debt
|
—
|
|
|
6,180
|
|
|
976
|
|
|
8
|
|
|
3
|
|
|
7,167
|
|
||||||
Pension liabilities
|
—
|
|
|
341
|
|
|
83
|
|
|
802
|
|
|
—
|
|
|
1,226
|
|
||||||
Other postretirement benefits
liabilities
|
—
|
|
|
192
|
|
|
94
|
|
|
76
|
|
|
—
|
|
|
362
|
|
||||||
Deferred income taxes
|
—
|
|
|
—
|
|
|
558
|
|
|
304
|
|
|
(324
|
)
|
|
538
|
|
||||||
Intercompany loans payable
|
917
|
|
|
3,718
|
|
|
68,405
|
|
|
1,146
|
|
|
(74,186
|
)
|
|
—
|
|
||||||
Other noncurrent liabilities
|
—
|
|
|
314
|
|
|
272
|
|
|
379
|
|
|
—
|
|
|
965
|
|
||||||
Total noncurrent liabilities
|
917
|
|
|
10,745
|
|
|
70,388
|
|
|
2,715
|
|
|
(74,507
|
)
|
|
10,258
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Shareholders’ equity
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Eaton shareholders’ equity
|
17,253
|
|
|
12,727
|
|
|
32,596
|
|
|
112,663
|
|
|
(157,986
|
)
|
|
17,253
|
|
||||||
Noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
37
|
|
|
—
|
|
|
37
|
|
||||||
Total equity
|
17,253
|
|
|
12,727
|
|
|
32,596
|
|
|
112,700
|
|
|
(157,986
|
)
|
|
17,290
|
|
||||||
Total liabilities and equity
|
$
|
18,175
|
|
|
$
|
30,159
|
|
|
$
|
108,108
|
|
|
$
|
119,435
|
|
|
$
|
(243,254
|
)
|
|
$
|
32,623
|
|
CONDENSED CONSOLIDATING BALANCE SHEETS
DECEMBER 31, 2016
|
|||||||||||||||||||||||
|
Eaton
Corporation
plc
|
|
Eaton
Corporation
|
|
Guarantors
|
|
Other
subsidiaries
|
|
Consolidating
adjustments
|
|
Total
|
||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Current assets
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cash
|
$
|
1
|
|
|
$
|
92
|
|
|
$
|
5
|
|
|
$
|
445
|
|
|
$
|
—
|
|
|
$
|
543
|
|
Short-term investments
|
—
|
|
|
—
|
|
|
—
|
|
|
203
|
|
|
—
|
|
|
203
|
|
||||||
Accounts receivable - net
|
—
|
|
|
536
|
|
|
1,049
|
|
|
1,975
|
|
|
—
|
|
|
3,560
|
|
||||||
Intercompany accounts receivable
|
5
|
|
|
953
|
|
|
4,239
|
|
|
3,382
|
|
|
(8,579
|
)
|
|
—
|
|
||||||
Inventory
|
—
|
|
|
443
|
|
|
638
|
|
|
1,344
|
|
|
(79
|
)
|
|
2,346
|
|
||||||
Prepaid expenses and other
current assets
|
—
|
|
|
77
|
|
|
42
|
|
|
237
|
|
|
25
|
|
|
381
|
|
||||||
Total current assets
|
6
|
|
|
2,101
|
|
|
5,973
|
|
|
7,586
|
|
|
(8,633
|
)
|
|
7,033
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Property, plant and equipment - net
|
—
|
|
|
857
|
|
|
706
|
|
|
1,880
|
|
|
—
|
|
|
3,443
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Other noncurrent assets
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Goodwill
|
—
|
|
|
1,362
|
|
|
6,293
|
|
|
5,546
|
|
|
—
|
|
|
13,201
|
|
||||||
Other intangible assets
|
—
|
|
|
169
|
|
|
3,442
|
|
|
1,903
|
|
|
—
|
|
|
5,514
|
|
||||||
Deferred income taxes
|
—
|
|
|
864
|
|
|
15
|
|
|
218
|
|
|
(772
|
)
|
|
325
|
|
||||||
Investment in subsidiaries
|
32,852
|
|
|
20,200
|
|
|
92,766
|
|
|
44,345
|
|
|
(190,163
|
)
|
|
—
|
|
||||||
Intercompany loans receivable
|
—
|
|
|
7,609
|
|
|
2,061
|
|
|
56,938
|
|
|
(66,608
|
)
|
|
—
|
|
||||||
Other assets
|
—
|
|
|
490
|
|
|
134
|
|
|
336
|
|
|
—
|
|
|
960
|
|
||||||
Total assets
|
$
|
32,858
|
|
|
$
|
33,652
|
|
|
$
|
111,390
|
|
|
$
|
118,752
|
|
|
$
|
(266,176
|
)
|
|
$
|
30,476
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
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
|
|
|
412
|
|
|
252
|
|
|
1,053
|
|
|
—
|
|
|
1,718
|
|
||||||
Intercompany accounts payable
|
281
|
|
|
3,332
|
|
|
3,130
|
|
|
1,836
|
|
|
(8,579
|
)
|
|
—
|
|
||||||
Accrued compensation
|
—
|
|
|
98
|
|
|
58
|
|
|
223
|
|
|
—
|
|
|
379
|
|
||||||
Other current liabilities
|
1
|
|
|
590
|
|
|
276
|
|
|
957
|
|
|
(2
|
)
|
|
1,822
|
|
||||||
Total current liabilities
|
283
|
|
|
5,682
|
|
|
4,020
|
|
|
4,081
|
|
|
(8,581
|
)
|
|
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
|
|
|
3,768
|
|
|
44,788
|
|
|
431
|
|
|
(66,608
|
)
|
|
—
|
|
||||||
Other noncurrent liabilities
|
—
|
|
|
326
|
|
|
212
|
|
|
396
|
|
|
—
|
|
|
934
|
|
||||||
Total noncurrent liabilities
|
17,621
|
|
|
10,669
|
|
|
46,928
|
|
|
2,155
|
|
|
(67,380
|
)
|
|
9,993
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Shareholders’ equity
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Eaton shareholders’ equity
|
14,954
|
|
|
17,301
|
|
|
60,442
|
|
|
112,478
|
|
|
(190,221
|
)
|
|
14,954
|
|
||||||
Noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
38
|
|
|
6
|
|
|
44
|
|
||||||
Total equity
|
14,954
|
|
|
17,301
|
|
|
60,442
|
|
|
112,516
|
|
|
(190,215
|
)
|
|
14,998
|
|
||||||
Total liabilities and equity
|
$
|
32,858
|
|
|
$
|
33,652
|
|
|
$
|
111,390
|
|
|
$
|
118,752
|
|
|
$
|
(266,176
|
)
|
|
$
|
30,476
|
|
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS
DECEMBER 31, 2017
|
|||||||||||||||||||||||
|
Eaton
Corporation
plc
|
|
Eaton
Corporation
|
|
Guarantors
|
|
Other
subsidiaries
|
|
Consolidating
adjustments
|
|
Total
|
||||||||||||
Net cash provided by (used in)
operating activities
|
$
|
258
|
|
|
$
|
(498
|
)
|
|
$
|
(30
|
)
|
|
$
|
4,545
|
|
|
$
|
(1,609
|
)
|
|
$
|
2,666
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Investing activities
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Capital expenditures for property,
plant and equipment
|
—
|
|
|
(90
|
)
|
|
(110
|
)
|
|
(320
|
)
|
|
—
|
|
|
(520
|
)
|
||||||
Cash received from sales (paid for
acquisitions) of affiliates
|
—
|
|
|
—
|
|
|
(92
|
)
|
|
92
|
|
|
—
|
|
|
—
|
|
||||||
Purchases of short-term investments - net
|
—
|
|
|
—
|
|
|
—
|
|
|
(298
|
)
|
|
—
|
|
|
(298
|
)
|
||||||
Investments in affiliates
|
(190
|
)
|
|
—
|
|
|
—
|
|
|
(90
|
)
|
|
280
|
|
|
—
|
|
||||||
Return of investments in affiliates
|
—
|
|
|
—
|
|
|
90
|
|
|
—
|
|
|
(90
|
)
|
|
—
|
|
||||||
Loans to affiliates
|
—
|
|
|
(444
|
)
|
|
—
|
|
|
(6,723
|
)
|
|
7,167
|
|
|
—
|
|
||||||
Repayments of loans from affiliates
|
—
|
|
|
303
|
|
|
46
|
|
|
3,817
|
|
|
(4,166
|
)
|
|
—
|
|
||||||
Proceeds from sale of business
|
—
|
|
|
338
|
|
|
—
|
|
|
269
|
|
|
—
|
|
|
607
|
|
||||||
Other - net
|
—
|
|
|
(45
|
)
|
|
9
|
|
|
30
|
|
|
—
|
|
|
(6
|
)
|
||||||
Net cash provided by (used in)
investing activities
|
(190
|
)
|
|
62
|
|
|
(57
|
)
|
|
(3,223
|
)
|
|
3,191
|
|
|
(217
|
)
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Financing activities
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Proceeds from borrowings
|
—
|
|
|
1,000
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,000
|
|
||||||
Payments on borrowings
|
—
|
|
|
(1,250
|
)
|
|
(297
|
)
|
|
(7
|
)
|
|
—
|
|
|
(1,554
|
)
|
||||||
Proceeds from borrowings from
affiliates
|
2,605
|
|
|
3,130
|
|
|
991
|
|
|
441
|
|
|
(7,167
|
)
|
|
—
|
|
||||||
Payments on borrowings from
affiliates
|
(822
|
)
|
|
(2,904
|
)
|
|
(353
|
)
|
|
(87
|
)
|
|
4,166
|
|
|
—
|
|
||||||
Capital contributions from affiliates
|
—
|
|
|
—
|
|
|
90
|
|
|
190
|
|
|
(280
|
)
|
|
—
|
|
||||||
Return of capital to affiliates
|
—
|
|
|
—
|
|
|
—
|
|
|
(90
|
)
|
|
90
|
|
|
—
|
|
||||||
Other intercompany financing
activities
|
—
|
|
|
573
|
|
|
469
|
|
|
(1,042
|
)
|
|
—
|
|
|
—
|
|
||||||
Cash dividends paid
|
(1,068
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,068
|
)
|
||||||
Cash dividends paid to affiliates
|
—
|
|
|
—
|
|
|
(800
|
)
|
|
(809
|
)
|
|
1,609
|
|
|
—
|
|
||||||
Exercise of employee stock options
|
66
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
66
|
|
||||||
Repurchase of shares
|
(850
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(850
|
)
|
||||||
Employee taxes paid from shares
withheld
|
—
|
|
|
(14
|
)
|
|
(5
|
)
|
|
(3
|
)
|
|
—
|
|
|
(22
|
)
|
||||||
Other - net
|
—
|
|
|
(8
|
)
|
|
(1
|
)
|
|
(5
|
)
|
|
—
|
|
|
(14
|
)
|
||||||
Net cash provided by (used in)
financing activities
|
(69
|
)
|
|
527
|
|
|
94
|
|
|
(1,412
|
)
|
|
(1,582
|
)
|
|
(2,442
|
)
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Effect of currency on cash
|
—
|
|
|
—
|
|
|
—
|
|
|
11
|
|
|
—
|
|
|
11
|
|
||||||
Total increase (decrease) in cash
|
(1
|
)
|
|
91
|
|
|
7
|
|
|
(79
|
)
|
|
—
|
|
|
18
|
|
||||||
Cash at the beginning of the period
|
1
|
|
|
92
|
|
|
5
|
|
|
445
|
|
|
—
|
|
|
543
|
|
||||||
Cash at the end of the period
|
$
|
—
|
|
|
$
|
183
|
|
|
$
|
12
|
|
|
$
|
366
|
|
|
$
|
—
|
|
|
$
|
561
|
|
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS
DECEMBER 31, 2016
|
|||||||||||||||||||||||
|
Eaton
Corporation
plc
|
|
Eaton
Corporation
|
|
Guarantors
|
|
Other
subsidiaries
|
|
Consolidating
adjustments
|
|
Total
|
||||||||||||
Net cash provided by (used in)
operating activities
|
$
|
(253
|
)
|
|
$
|
22
|
|
|
$
|
(232
|
)
|
|
$
|
3,033
|
|
|
$
|
—
|
|
|
$
|
2,570
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Investing activities
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Capital expenditures for property,
plant and equipment
|
—
|
|
|
(92
|
)
|
|
(114
|
)
|
|
(291
|
)
|
|
—
|
|
|
(497
|
)
|
||||||
Cash received from acquisitions of
businesses, net of cash acquired
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
1
|
|
||||||
Sales (purchases) of short-term investments - net
|
—
|
|
|
—
|
|
|
2
|
|
|
(42
|
)
|
|
—
|
|
|
(40
|
)
|
||||||
Investments in affiliates
|
(1,250
|
)
|
|
—
|
|
|
(120
|
)
|
|
(1,370
|
)
|
|
2,740
|
|
|
—
|
|
||||||
Return of investments in affiliates
|
—
|
|
|
—
|
|
|
47
|
|
|
—
|
|
|
(47
|
)
|
|
—
|
|
||||||
Loans to affiliates
|
—
|
|
|
(251
|
)
|
|
(655
|
)
|
|
(8,208
|
)
|
|
9,114
|
|
|
—
|
|
||||||
Repayments of loans from affiliates
|
—
|
|
|
1,293
|
|
|
—
|
|
|
5,951
|
|
|
(7,244
|
)
|
|
—
|
|
||||||
Other - net
|
—
|
|
|
(9
|
)
|
|
41
|
|
|
(25
|
)
|
|
—
|
|
|
7
|
|
||||||
Net cash provided by (used in)
investing activities
|
(1,250
|
)
|
|
941
|
|
|
(798
|
)
|
|
(3,985
|
)
|
|
4,563
|
|
|
(529
|
)
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Financing activities
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Proceeds from borrowings
|
—
|
|
|
21
|
|
|
610
|
|
|
—
|
|
|
—
|
|
|
631
|
|
||||||
Payments on borrowings
|
—
|
|
|
(408
|
)
|
|
(233
|
)
|
|
(12
|
)
|
|
—
|
|
|
(653
|
)
|
||||||
Proceeds from borrowings from
affiliates
|
3,843
|
|
|
4,045
|
|
|
1,120
|
|
|
106
|
|
|
(9,114
|
)
|
|
—
|
|
||||||
Payments on borrowings from
affiliates
|
(646
|
)
|
|
(4,712
|
)
|
|
(1,844
|
)
|
|
(42
|
)
|
|
7,244
|
|
|
—
|
|
||||||
Capital contribution from affiliates
|
—
|
|
|
—
|
|
|
1,370
|
|
|
1,370
|
|
|
(2,740
|
)
|
|
—
|
|
||||||
Return of capital to affiliates
|
—
|
|
|
—
|
|
|
—
|
|
|
(47
|
)
|
|
47
|
|
|
—
|
|
||||||
Other intercompany financing
activities
|
—
|
|
|
168
|
|
|
12
|
|
|
(180
|
)
|
|
—
|
|
|
—
|
|
||||||
Cash dividends paid
|
(1,037
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,037
|
)
|
||||||
Exercise of employee stock options
|
74
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
74
|
|
||||||
Repurchase of shares
|
(730
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(730
|
)
|
||||||
Employee taxes paid from shares
withheld
|
—
|
|
|
(12
|
)
|
|
(3
|
)
|
|
(3
|
)
|
|
—
|
|
|
(18
|
)
|
||||||
Other - net
|
—
|
|
|
1
|
|
|
(4
|
)
|
|
(2
|
)
|
|
—
|
|
|
(5
|
)
|
||||||
Net cash provided by (used in)
financing activities
|
1,504
|
|
|
(897
|
)
|
|
1,028
|
|
|
1,190
|
|
|
(4,563
|
)
|
|
(1,738
|
)
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Effect of currency on cash
|
—
|
|
|
—
|
|
|
—
|
|
|
(28
|
)
|
|
—
|
|
|
(28
|
)
|
||||||
Total increase (decrease) in cash
|
1
|
|
|
66
|
|
|
(2
|
)
|
|
210
|
|
|
—
|
|
|
275
|
|
||||||
Cash at the beginning of the period
|
—
|
|
|
26
|
|
|
7
|
|
|
235
|
|
|
—
|
|
|
268
|
|
||||||
Cash at the end of the period
|
$
|
1
|
|
|
$
|
92
|
|
|
$
|
5
|
|
|
$
|
445
|
|
|
$
|
—
|
|
|
$
|
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
|
)
|
|
$
|
(195
|
)
|
|
$
|
(281
|
)
|
|
$
|
3,026
|
|
|
$
|
(4
|
)
|
|
$
|
2,409
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Investing activities
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Capital expenditures for property,
plant and equipment
|
—
|
|
|
(94
|
)
|
|
(146
|
)
|
|
(266
|
)
|
|
—
|
|
|
(506
|
)
|
||||||
Cash paid for acquisitions of
businesses, net of cash acquired
|
—
|
|
|
—
|
|
|
(36
|
)
|
|
(36
|
)
|
|
—
|
|
|
(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
|
—
|
|
|
(889
|
)
|
|
(39
|
)
|
|
(10,608
|
)
|
|
11,536
|
|
|
—
|
|
||||||
Repayments of loans from affiliates
|
—
|
|
|
342
|
|
|
359
|
|
|
7,493
|
|
|
(8,194
|
)
|
|
—
|
|
||||||
Proceeds from the sales of
businesses
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
1
|
|
||||||
Other - net
|
—
|
|
|
(50
|
)
|
|
47
|
|
|
(32
|
)
|
|
—
|
|
|
(35
|
)
|
||||||
Net cash provided by (used in)
investing activities
|
(1,482
|
)
|
|
(691
|
)
|
|
(993
|
)
|
|
(4,891
|
)
|
|
7,482
|
|
|
(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
|
|
|
332
|
|
|
(11,536
|
)
|
|
—
|
|
||||||
Payments on borrowings from
affiliates
|
(48
|
)
|
|
(6,467
|
)
|
|
(1,282
|
)
|
|
(397
|
)
|
|
8,194
|
|
|
—
|
|
||||||
Capital contribution from affiliates
|
—
|
|
|
1,176
|
|
|
1,482
|
|
|
1,482
|
|
|
(4,140
|
)
|
|
—
|
|
||||||
Other intercompany financing
activities
|
—
|
|
|
(518
|
)
|
|
378
|
|
|
140
|
|
|
—
|
|
|
—
|
|
||||||
Cash dividends paid
|
(1,026
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,026
|
)
|
||||||
Cash dividends paid to affiliates
|
—
|
|
|
—
|
|
|
—
|
|
|
(4
|
)
|
|
4
|
|
|
—
|
|
||||||
Exercise of employee stock options
|
52
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
52
|
|
||||||
Repurchase of shares
|
(682
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(682
|
)
|
||||||
Employee taxes paid from shares
withheld
|
—
|
|
|
(26
|
)
|
|
(6
|
)
|
|
(6
|
)
|
|
—
|
|
|
(38
|
)
|
||||||
Other - net
|
—
|
|
|
1
|
|
|
—
|
|
|
(10
|
)
|
|
—
|
|
|
(9
|
)
|
||||||
Net cash provided by (used in)
financing activities
|
1,618
|
|
|
735
|
|
|
1,268
|
|
|
1,552
|
|
|
(7,478
|
)
|
|
(2,305
|
)
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Effect of currency on cash
|
—
|
|
|
—
|
|
|
—
|
|
|
(42
|
)
|
|
—
|
|
|
(42
|
)
|
||||||
Total increase (decrease) in cash
|
(1
|
)
|
|
(151
|
)
|
|
(6
|
)
|
|
(355
|
)
|
|
—
|
|
|
(513
|
)
|
||||||
Cash at the beginning of the period
|
1
|
|
|
177
|
|
|
13
|
|
|
590
|
|
|
—
|
|
|
781
|
|
||||||
Cash at the end of the period
|
$
|
—
|
|
|
$
|
26
|
|
|
$
|
7
|
|
|
$
|
235
|
|
|
$
|
—
|
|
|
$
|
268
|
|
|
2017
|
|
2016*
|
|
2015*
|
||||||
Net sales
|
$
|
20,404
|
|
|
$
|
19,747
|
|
|
$
|
20,855
|
|
Net income attributable to Eaton ordinary shareholders
|
2,985
|
|
|
1,916
|
|
|
1,972
|
|
|||
Net income per share attributable to Eaton ordinary shareholders - diluted
|
$
|
6.68
|
|
|
$
|
4.20
|
|
|
$
|
4.22
|
|
|
2017
|
|
Change
from 2016
|
|
2016*
|
|
Change
from 2015
|
|
2015*
|
||||||||
Net sales
|
$
|
20,404
|
|
|
3
|
%
|
|
$
|
19,747
|
|
|
(5
|
)%
|
|
$
|
20,855
|
|
Gross profit
|
6,648
|
|
|
5
|
%
|
|
6,338
|
|
|
(3
|
)%
|
|
6,551
|
|
|||
Percent of net sales
|
32.6
|
%
|
|
|
|
32.1
|
%
|
|
|
|
31.4
|
%
|
|||||
Income before income taxes
|
3,368
|
|
|
59
|
%
|
|
2,118
|
|
|
(1
|
)%
|
|
2,133
|
|
|||
Net income
|
2,986
|
|
|
56
|
%
|
|
1,919
|
|
|
(3
|
)%
|
|
1,974
|
|
|||
Less net income for noncontrolling interests
|
(1
|
)
|
|
|
|
(3
|
)
|
|
|
|
(2
|
)
|
|||||
Net income attributable to Eaton ordinary shareholders
|
2,985
|
|
|
56
|
%
|
|
1,916
|
|
|
(3
|
)%
|
|
1,972
|
|
|||
Excluding acquisition integration charges,
after-tax (Note 3)
|
2
|
|
|
|
|
3
|
|
|
|
|
31
|
|
|||||
Adjusted earnings
|
$
|
2,987
|
|
|
56
|
%
|
|
$
|
1,919
|
|
|
(4
|
)%
|
|
$
|
2,003
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Net income per share attributable to Eaton ordinary shareholders - diluted
|
$
|
6.68
|
|
|
59
|
%
|
|
$
|
4.20
|
|
|
—
|
%
|
|
$
|
4.22
|
|
Excluding per share impact of acquisition integration charges, after-tax (Note 3)
|
—
|
|
|
|
|
0.01
|
|
|
|
|
0.07
|
|
|||||
Adjusted earnings per ordinary share
|
$
|
6.68
|
|
|
59
|
%
|
|
$
|
4.21
|
|
|
(2
|
)%
|
|
$
|
4.29
|
|
|
2017
|
|
Change
from 2016 |
|
2016
|
|
Change
from 2015 |
|
2015
|
||||||||
Net sales
|
$
|
7,193
|
|
|
3
|
%
|
|
$
|
6,957
|
|
|
—
|
%
|
|
$
|
6,976
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Operating profit
|
$
|
1,287
|
|
|
4
|
%
|
|
$
|
1,240
|
|
|
7
|
%
|
|
$
|
1,156
|
|
Operating margin
|
17.9
|
%
|
|
|
|
17.8
|
%
|
|
|
|
16.6
|
%
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||
Acquisition integration charges
|
$
|
4
|
|
|
|
|
$
|
3
|
|
|
|
|
$
|
25
|
|
||
|
|
|
|
|
|
|
|
|
|
||||||||
Before acquisition integration charges
|
|
|
|
|
|
|
|
|
|
||||||||
Operating profit
|
$
|
1,291
|
|
|
4
|
%
|
|
$
|
1,243
|
|
|
5
|
%
|
|
$
|
1,181
|
|
Operating margin
|
17.9
|
%
|
|
|
|
17.9
|
%
|
|
|
|
16.9
|
%
|
|
2017
|
|
Change
from 2016 |
|
2016
|
|
Change
from 2015 |
|
2015
|
||||||||
Net sales
|
$
|
5,666
|
|
|
—
|
%
|
|
$
|
5,662
|
|
|
(5
|
)%
|
|
$
|
5,931
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Operating profit
|
$
|
770
|
|
|
8
|
%
|
|
$
|
711
|
|
|
(8
|
)%
|
|
$
|
776
|
|
Operating margin
|
13.6
|
%
|
|
|
|
12.6
|
%
|
|
|
|
13.1
|
%
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||
Acquisition integration charges
|
$
|
—
|
|
|
|
|
$
|
1
|
|
|
|
|
$
|
15
|
|
||
|
|
|
|
|
|
|
|
|
|
||||||||
Before acquisition integration charges
|
|
|
|
|
|
|
|
|
|
||||||||
Operating profit
|
$
|
770
|
|
|
8
|
%
|
|
$
|
712
|
|
|
(10
|
)%
|
|
$
|
791
|
|
Operating margin
|
13.6
|
%
|
|
|
|
12.6
|
%
|
|
|
|
13.3
|
%
|
|
2017
|
|
Change
from 2016 |
|
2016
|
|
Change
from 2015 |
|
2015
|
||||||||
Net sales
|
$
|
2,468
|
|
|
11
|
%
|
|
$
|
2,222
|
|
|
(10
|
)%
|
|
$
|
2,459
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Operating profit
|
$
|
288
|
|
|
45
|
%
|
|
$
|
198
|
|
|
(20
|
)%
|
|
$
|
246
|
|
Operating margin
|
11.7
|
%
|
|
|
|
8.9
|
%
|
|
|
|
10.0
|
%
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||
Acquisition integration charges
|
$
|
—
|
|
|
|
|
$
|
—
|
|
|
|
|
$
|
2
|
|
||
|
|
|
|
|
|
|
|
|
|
||||||||
Before acquisition integration charges
|
|
|
|
|
|
|
|
|
|
||||||||
Operating profit
|
$
|
288
|
|
|
45
|
%
|
|
$
|
198
|
|
|
(20
|
)%
|
|
$
|
248
|
|
Operating margin
|
11.7
|
%
|
|
|
|
8.9
|
%
|
|
|
|
10.1
|
%
|
|
2017
|
|
Change
from 2016 |
|
2016
|
|
Change
from 2015 |
|
2015
|
||||||||
Net sales
|
$
|
1,744
|
|
|
—
|
%
|
|
$
|
1,753
|
|
|
(3
|
)%
|
|
$
|
1,807
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Operating profit
|
$
|
332
|
|
|
(1
|
)%
|
|
$
|
335
|
|
|
8
|
%
|
|
$
|
310
|
|
Operating margin
|
19.0
|
%
|
|
|
|
19.1
|
%
|
|
|
|
17.2
|
%
|
|
2017
|
|
Change
from 2016 |
|
2016
|
|
Change
from 2015 |
|
2015
|
||||||||
Net sales
|
$
|
3,333
|
|
|
6
|
%
|
|
$
|
3,153
|
|
|
(14
|
)%
|
|
$
|
3,682
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Operating profit
|
$
|
537
|
|
|
13
|
%
|
|
$
|
474
|
|
|
(27
|
)%
|
|
$
|
645
|
|
Operating margin
|
16.1
|
%
|
|
|
|
15.0
|
%
|
|
|
|
17.5
|
%
|
|
2017
|
|
Change
from 2016
|
|
2016*
|
|
Change
from 2015
|
|
2015*
|
||||||||
Amortization of intangible assets
|
$
|
388
|
|
|
(1
|
)%
|
|
$
|
392
|
|
|
(3
|
)%
|
|
$
|
406
|
|
Interest expense - net
|
246
|
|
|
6
|
%
|
|
233
|
|
|
—
|
%
|
|
232
|
|
|||
Pension and other postretirement benefits expense
|
45
|
|
|
(25
|
)%
|
|
60
|
|
|
(54
|
)%
|
|
130
|
|
|||
Gain on sale of a business
|
(1,077
|
)
|
|
NM
|
|
|
—
|
|
|
NM
|
|
|
—
|
|
|||
Other corporate expense - net
|
244
|
|
|
57
|
%
|
|
155
|
|
|
(33
|
)%
|
|
232
|
|
|||
Total corporate expense (income)
|
$
|
(154
|
)
|
|
(118
|
)%
|
|
$
|
840
|
|
|
(16
|
)%
|
|
$
|
1,000
|
|
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
|
|
2018
|
|
2019
to
2020
|
|
2021
to
2022
|
|
Thereafter
|
|
Total
|
||||||||||
Long-term debt, including current portion
(1)
|
$
|
578
|
|
|
$
|
581
|
|
|
$
|
2,003
|
|
|
$
|
4,549
|
|
|
$
|
7,711
|
|
Interest expense related to long-term debt
|
284
|
|
|
497
|
|
|
453
|
|
|
1,965
|
|
|
3,199
|
|
|||||
Reduction of interest expense from interest rate swap agreements related to long-term debt
|
(19
|
)
|
|
(14
|
)
|
|
(12
|
)
|
|
(46
|
)
|
|
(91
|
)
|
|||||
Operating leases
|
159
|
|
|
204
|
|
|
105
|
|
|
71
|
|
|
539
|
|
|||||
Purchase obligations
|
958
|
|
|
93
|
|
|
9
|
|
|
4
|
|
|
1,064
|
|
|||||
Other obligations
|
155
|
|
|
9
|
|
|
8
|
|
|
23
|
|
|
195
|
|
|||||
Total
|
$
|
2,115
|
|
|
$
|
1,370
|
|
|
$
|
2,566
|
|
|
$
|
6,566
|
|
|
$
|
12,617
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
(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)
|
2017
|
|
2016*
|
|
2015*
|
|
2014*
|
|
2013*
|
||||||||||
Net sales
|
$
|
20,404
|
|
|
$
|
19,747
|
|
|
$
|
20,855
|
|
|
$
|
22,552
|
|
|
$
|
22,046
|
|
Income before income taxes
|
3,368
|
|
|
2,118
|
|
|
2,133
|
|
|
1,762
|
|
|
1,870
|
|
|||||
Net income
|
2,986
|
|
|
1,919
|
|
|
1,974
|
|
|
1,804
|
|
|
1,864
|
|
|||||
Less net income for noncontrolling interests
|
(1
|
)
|
|
(3
|
)
|
|
(2
|
)
|
|
(10
|
)
|
|
(12
|
)
|
|||||
Net income attributable to Eaton ordinary shareholders
|
$
|
2,985
|
|
|
$
|
1,916
|
|
|
$
|
1,972
|
|
|
$
|
1,794
|
|
|
$
|
1,852
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income per share attributable to Eaton ordinary shareholders
|
|
|
|
|
|
|
|
|
|
||||||||||
Diluted
|
$
|
6.68
|
|
|
$
|
4.20
|
|
|
$
|
4.22
|
|
|
$
|
3.76
|
|
|
$
|
3.88
|
|
Basic
|
6.71
|
|
|
4.21
|
|
|
4.23
|
|
|
3.78
|
|
|
3.91
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Weighted-average number of ordinary shares outstanding
|
|
|
|
|
|
|
|
|
|
||||||||||
Diluted
|
447.0
|
|
|
456.5
|
|
|
467.1
|
|
|
476.8
|
|
|
476.7
|
|
|||||
Basic
|
444.5
|
|
|
455.0
|
|
|
465.5
|
|
|
474.1
|
|
|
473.5
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash dividends declared
per ordinary share
|
$
|
2.40
|
|
|
$
|
2.28
|
|
|
$
|
2.20
|
|
|
$
|
1.96
|
|
|
$
|
1.68
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total assets
|
$
|
32,623
|
|
|
$
|
30,476
|
|
|
$
|
31,059
|
|
|
$
|
33,557
|
|
|
$
|
35,511
|
|
Long-term debt
|
7,167
|
|
|
6,711
|
|
|
7,746
|
|
|
7,982
|
|
|
8,920
|
|
|||||
Total debt
|
7,751
|
|
|
8,277
|
|
|
8,414
|
|
|
8,992
|
|
|
9,500
|
|
|||||
Eaton shareholders' equity
|
17,253
|
|
|
14,954
|
|
|
15,249
|
|
|
15,856
|
|
|
16,860
|
|
|||||
Eaton shareholders' equity
per ordinary share
|
$
|
39.22
|
|
|
$
|
33.28
|
|
|
$
|
33.24
|
|
|
$
|
33.89
|
|
|
$
|
35.49
|
|
Ordinary shares outstanding
|
439.9
|
|
|
449.4
|
|
|
458.8
|
|
|
467.9
|
|
|
475.1
|
|
EATON CORPORATION
|
|
|
|
By:
|
/s/ Trent M. Meyerhoefer
|
|
Name: Trent M. Meyerhoefer
|
|
Title: Senior Vice President - Treasury
|
|
|
By:
|
/s/ Lizbeth L. Wright
|
|
Name: Lizbeth L. Wright
|
|
Title: Assistant Secretary
|
EATON CORPORATION
|
|
|
|
By:
|
/s/ Thomas E. Moran
|
|
Name: Thomas E. Moran
|
|
Title: Director
|
|
|
|
In the presence of:
|
|
|
|
/s/ Celine Notin
|
|
Name: Celine Notin
|
|
Title: Witness
|
By:
|
/s/ Melonee Young
|
|
Name: Melonee Young
|
|
Title: Vice President
|
a.
|
THE CONSUMMATION OF ANY TRANSACTION PERMITTED UNDER THE INDENTURE (INCLUDING A SALE, TRANSFER, DISPOSITION OR DISTRIBUTION OF THE NEW GUARANTOR TO A PERSON THAT IS NOT PARENT OR ONE OF ITS SUBSIDIARIES, OR A DISSOLUTION) RESULTING IN THE NEW GUARANTOR CEASING TO BE A SUBSIDIARY; OR
|
b.
|
THE NEW GUARANTOR BECOMING AN EXCLUDED PERSON;
PROVIDED THAT
NO SUCH RELEASE WILL OCCUR TO THE EXTENT THE NEW GUARANTOR REMAINS AN ISSUER OR CO-ISSUER OF OR BORROWER OR GUARANTOR UNDER ANY U.S. DEBT SECURITIES OR U.S. SYNDICATED CREDIT FACILITIES.
|
EATON CORPORATION
|
|
|
|
By:
|
/s/
Trent M. Meyerhoefer
|
|
Name:
Trent M. Meyerhoefer
|
|
Title:
Senior Vice President – Treasury
|
|
|
By:
|
/s/
Lizbeth L. Wright
|
|
Name:
Lizbeth L. Wright
|
|
Title: Assistant Secretary
|
EATON INDUSTRIAL CORPORATION
|
|
|
|
By:
|
/s/
Trent M. Meyerhoefer
|
|
Name:
Trent M. Meyerhoefer
|
|
Title:
Vice President and Treasurer
|
THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A.,
|
|
as Trustee
|
|
|
|
By:
|
/s/ Richard Tarnas
|
|
Name: Richard Tarnas
|
|
Title:
Vice President
|
|
|
|
|
1
|
|
|
2
|
|
By:
|
/s/ Trent M. Meyerhoefer
Name: Trent M. Meyerhoefer Title: Senior Vice President – Treasury |
By:
|
/s/ Lizbeth L. Wright
Name: Lizbeth L. Wright Title: Assistant Secretary |
By:
|
/s/ R. Tarnas
Name: R. Tarnas Title: Vice President |
|
|
Year ended December 31
|
||||||||||||||||||
(In millions)
|
|
2017
|
|
2016*
|
|
2015*
|
|
2014*
|
|
2013*
|
||||||||||
Income from continuing operations before income taxes and
noncontrolling interests in consolidated subsidiaries
|
|
$
|
3,368
|
|
|
$
|
2,118
|
|
|
$
|
2,133
|
|
|
$
|
1,762
|
|
|
$
|
1,870
|
|
Adjustments
|
|
|
|
|
|
|
|
|
|
|
||||||||||
(Income) loss of equity investees
|
|
(1
|
)
|
|
(14
|
)
|
|
(11
|
)
|
|
(6
|
)
|
|
2
|
|
|||||
Distributed income of equity investees
|
|
7
|
|
|
9
|
|
|
9
|
|
|
4
|
|
|
77
|
|
|||||
Interest expensed
|
|
273
|
|
|
240
|
|
|
237
|
|
|
250
|
|
|
290
|
|
|||||
Amortization of debt issue costs
|
|
7
|
|
|
7
|
|
|
8
|
|
|
9
|
|
|
10
|
|
|||||
Estimated portion of rent expense representing interest
|
|
74
|
|
|
73
|
|
|
75
|
|
|
81
|
|
|
80
|
|
|||||
Amortization of capitalized interest
|
|
11
|
|
|
12
|
|
|
10
|
|
|
14
|
|
|
13
|
|
|||||
Adjusted income from continuing operations before
income taxes
|
|
$
|
3,739
|
|
|
$
|
2,445
|
|
|
$
|
2,461
|
|
|
$
|
2,114
|
|
|
$
|
2,342
|
|
Fixed charges
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest expensed
|
|
$
|
273
|
|
|
$
|
240
|
|
|
$
|
237
|
|
|
$
|
250
|
|
|
$
|
290
|
|
Interest capitalized
|
|
11
|
|
|
12
|
|
|
13
|
|
|
13
|
|
|
11
|
|
|||||
Amortization of debt issue costs
|
|
7
|
|
|
7
|
|
|
8
|
|
|
9
|
|
|
10
|
|
|||||
Estimated portion of rent expense representing interest
|
|
74
|
|
|
73
|
|
|
75
|
|
|
81
|
|
|
80
|
|
|||||
Total fixed charges
|
|
$
|
365
|
|
|
$
|
332
|
|
|
$
|
333
|
|
|
$
|
353
|
|
|
$
|
391
|
|
Ratio of earnings to fixed charges
|
|
10.24
|
|
|
7.36
|
|
|
7.39
|
|
|
5.99
|
|
|
5.99
|
|
Consolidated Subsidiaries (A)
|
|
Where Organized
|
Illumination Management Solutions, Inc.
|
|
California
|
Eaton Energy Solutions, Inc.
|
|
Colorado
|
Bussmann International Holdings, LLC
|
|
Delaware
|
Bussmann International, Inc.
|
|
Delaware
|
CBE Services, Inc.
|
|
Delaware
|
Cooper B-Line, Inc.
|
|
Delaware
|
Cooper Bussmann, LLC
|
|
Delaware
|
Cooper Crouse-Hinds MTL, Inc.
|
|
Delaware
|
Cooper Crouse-Hinds, LLC
|
|
Delaware
|
Cooper Electrical International, LLC
|
|
Delaware
|
Cooper Enterprises LLC
|
|
Delaware
|
Cooper Finance USA, Inc.
|
|
Delaware
|
Cooper Industries International, LLC
|
|
Delaware
|
Cooper Industries Middle East, LLC
|
|
Delaware
|
Cooper Industries Poland, LLC
|
|
Delaware
|
Cooper Industries Vietnam, LLC
|
|
Delaware
|
Cooper Industries, LLC
|
|
Delaware
|
Cooper Interconnect, Inc.
|
|
Delaware
|
Cooper Lighting, LLC
|
|
Delaware
|
Cooper Notification, Inc.
|
|
Delaware
|
Cooper Power Systems, LLC
|
|
Delaware
|
Cooper Technologies Company
|
|
Delaware
|
Eaton Aerospace LLC
|
|
Delaware
|
Eaton Automated Transmission Technologies Corporation
|
|
Delaware
|
Eaton Electric Holdings LLC
|
|
Delaware
|
Eaton Holding International LLC
|
|
Delaware
|
Eaton Hydraulics LLC
|
|
Delaware
|
Eaton Industrial Corporation
|
|
Delaware
|
Eaton Industries (Philippines), LLC
|
|
Delaware
|
Eaton Worldwide LLC
|
|
Delaware
|
EIC Holding GP I
|
|
Delaware
|
EIC Holding GP II
|
|
Delaware
|
EIC Holding GP III
|
|
Delaware
|
EIC Holding GP IV
|
|
Delaware
|
EIC Holding I LLC
|
|
Delaware
|
EIC Holding II LLC
|
|
Delaware
|
EIC Holding III LLC
|
|
Delaware
|
EIC Holding IV LLC
|
|
Delaware
|
EIC Holding V LLC
|
|
Delaware
|
EIC Holding VI LLC
|
|
Delaware
|
McGraw-Edison Development Corporation
|
|
Delaware
|
MTL Instruments LLC
|
|
Delaware
|
Consolidated Subsidiaries (A)
|
|
Where Organized
|
MTL Partners II, Inc.
|
|
Delaware
|
MTL Partners, Inc.
|
|
Delaware
|
Standard Automation & Control LP
|
|
Delaware
|
Wright Line Holding, Inc.
|
|
Delaware
|
Wright Line LLC
|
|
Delaware
|
Azonix Corporation
|
|
Massachusetts
|
Eaton Ann Arbor LLC
|
|
Michigan
|
Cannon Technologies, Inc.
|
|
Minnesota
|
Cooper Wheelock, Inc.
|
|
New Jersey
|
Cooper Wiring Devices, Inc.
|
|
New York
|
Chagrin Highlands III Limited
|
|
Ohio
|
Eaton Aeroquip LLC
|
|
Ohio
|
Eaton Corporation
|
|
Ohio
|
Eaton Holding 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
|
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
|
Consolidated Subsidiaries (A)
|
|
Where Organized
|
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
|
Cyme International T & D Inc.
|
|
Canada
|
Eaton ETN Offshore Company
|
|
Canada
|
Eaton ETN Offshore II Company
|
|
Canada
|
Eaton Industries (Canada) Company
|
|
Canada
|
Aeroquip Financial 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 Wiring Devices Electronics Co., Ltd.
|
|
China
|
Eaton (China) Investments Co., Ltd.
|
|
China
|
Eaton Electrical Equipment Co Ltd
|
|
China
|
Eaton Electrical Ltd.
|
|
China
|
Eaton Filtration (Shanghai) Co. Ltd.
|
|
China
|
Eaton Fluid Power (Shanghai) Co., Ltd.
|
|
China
|
Eaton Fu Li An (Changzhou) Electronics Co., Ltd.
|
|
China
|
Eaton Hydraulics (Luzhou) Co., Ltd.
|
|
China
|
Eaton Hydraulics (Ningbo) Co., Ltd.
|
|
China
|
Eaton Hydraulics Systems (Jining) Co., Ltd.
|
|
China
|
Eaton Industrial Clutches and Brakes (Shanghai) Co., Ltd.
|
|
China
|
Eaton Industries (Jining) Co., Ltd
|
|
China
|
Eaton Industries (Shanghai) Co., Ltd
|
|
China
|
Eaton Industries (Wuxi) Co., Ltd.
|
|
China
|
Eaton Power Quality (Shanghai) Co., Ltd.
|
|
China
|
Eaton Senstar Automotive Fluid Connector (Shanghai) Co., Ltd.
|
|
China
|
Consolidated Subsidiaries (A)
|
|
Where Organized
|
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
|
Phoenixtec Electronics (Shenzhen) Co., Ltd.
|
|
China
|
Rizhao Yoosung Shinhwa Automobile Parts Co., Ltd.
|
|
China
|
Santak Electronic (Shenzhen) Co., Ltd.
|
|
China
|
UPE Electronics (Shenzhen) Co., Ltd.
|
|
China
|
Cooper Industries Colombia S.A.S.
|
|
Colombia
|
Eaton Industries (Colombia) S.A.S.
|
|
Colombia
|
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 Power Quality OY (Finland)
|
|
Finland
|
Cooper Capri S.A.S.
|
|
France
|
Cooper Menvier France SARL
|
|
France
|
Cooper Securite S.A.S.
|
|
France
|
Eaton France Holding SAS
|
|
France
|
Eaton Industries (France) S.A.S.
|
|
France
|
Eaton Power Quality S.A.S.
|
|
France
|
Eaton S.A.S.
|
|
France
|
Eaton Technologies S.A.
|
|
France
|
Martek Power F SAS
|
|
France
|
MP Group SAS
|
|
France
|
MTL Instruments SARL
|
|
France
|
Sefelec SAS
|
|
France
|
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
|
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
|
Consolidated Subsidiaries (A)
|
|
Where Organized
|
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
|
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 Management Services LLP
|
|
India
|
Eaton Power Quality Private Limited
|
|
India
|
Eaton Technologies Private Limited
|
|
India
|
Internormen Filters Private Limited
|
|
India
|
MTL Instruments Private Limited
|
|
India
|
PT Eaton Industries
|
|
Indonesia
|
PT. Fluid Sciences Batam
|
|
Indonesia
|
Abeiron III Unlimited Company
|
|
Ireland
|
Cooper Industries Trading Unlimited Company
|
|
Ireland
|
Cooper Industries Unlimited Company
|
|
Ireland
|
Eaton Capital Global Holdings Unlimited Company
|
|
Ireland
|
Eaton Capital Unlimited Co
|
|
Ireland
|
Eaton Industries (Ireland) Limited
|
|
Ireland
|
Eaton Intelligent Power Limited
|
|
Ireland
|
Tractech (Ireland) Limited
|
|
Ireland
|
TT (Ireland) Acquisition Limited
|
|
Ireland
|
Eaton Global Limited
|
|
Isle of Man
|
Consolidated Subsidiaries (A)
|
|
Where Organized
|
Eaton Global Holdings Limited
|
|
Isle of Man
|
Eaton Industries (Israel) Ltd.
|
|
Israel
|
Cooper Csa Srl
|
|
Italy
|
Eaton Filtration (Italy) S.r.l.
|
|
Italy
|
Eaton Fluid Power S.r.l.
|
|
Italy
|
Eaton Industries (Italy) S.r.l.
|
|
Italy
|
Eaton S.r.l.
|
|
Italy
|
Gitiesse S.r.l.
|
|
Italy
|
MTL Italia Srl
|
|
Italy
|
Cooper Industries Japan K.K.
|
|
Japan
|
Eaton Electric (Japan) Ltd.
|
|
Japan
|
Eaton Filtration Ltd.
|
|
Japan
|
Eaton Industries (Japan) Ltd.
|
|
Japan
|
Eaton Japan Co., Ltd.
|
|
Japan
|
Cooper Korea Ltd.
|
|
Korea
|
Eaton Industries (Korea) Limited
|
|
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
|
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
|
Consolidated Subsidiaries (A)
|
|
Where Organized
|
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
|
Eaton Holding I B.V.
|
|
Netherlands
|
Eaton Holding III B.V.
|
|
Netherlands
|
Eaton Holding Turlock B.V.
|
|
Netherlands
|
Eaton Holding V B.V.
|
|
Netherlands
|
Eaton Holding VI B.V.
|
|
Netherlands
|
Eaton Holding VII B.V.
|
|
Netherlands
|
Eaton Holding VIII B.V.
|
|
Netherlands
|
Eaton Industries (Netherlands) B.V.
|
|
Netherlands
|
Eaton International B.V.
|
|
Netherlands
|
Eaton Moeller B.V.
|
|
Netherlands
|
MTL Instruments B.V.
|
|
Netherlands
|
Scantronic Benelux BV
|
|
Netherlands
|
Turlock B.V.
|
|
Netherlands
|
Eaton Industries Company
|
|
New Zealand
|
Eaton International Industries Nigeria Limited
|
|
Nigeria
|
Cooper Crouse-Hinds AS
|
|
Norway
|
Eaton Electric AS
|
|
Norway
|
Hernis Scan Systems A/S
|
|
Norway
|
Norex AS
|
|
Norway
|
Eaton 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
|
Consolidated Subsidiaries (A)
|
|
Where Organized
|
Eaton Truck Components 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
|
Hernis Scan Systems - Asia Pte Ltd.
|
|
Singapore
|
Eaton Electric s.r.o.
|
|
Slovak Republic
|
Eaton Electric (South Africa) Pty Ltd.
|
|
South Africa
|
Eaton Hydraulics (Proprietary) Limited
|
|
South Africa
|
Eaton Truck Components (Proprietary) Ltd.
|
|
South Africa
|
Aeroquip Iberica S.L.
|
|
Spain
|
Cooper Crouse-Hinds, S.A.
|
|
Spain
|
Eaton Industries (Spain) S.L.
|
|
Spain
|
Productos Eaton Livia S.L.
|
|
Spain
|
Eaton Holec AB
|
|
Sweden
|
Eaton Power Quality AB
|
|
Sweden
|
Ultronics Nordic Sales AB
|
|
Sweden
|
Eaton Automation G.m.b.H
|
|
Switzerland
|
Eaton Automation Holding G.m.b.H.
|
|
Switzerland
|
Eaton Industries II G.m.b.H.
|
|
Switzerland
|
Eaton Industries Manufacturing G.m.b.H.
|
|
Switzerland
|
Eaton Manufacturing G.m.b.H.
|
|
Switzerland
|
Eaton Manufacturing II G.m.b.H.
|
|
Switzerland
|
Eaton Manufacturing III G.m.b.H.
|
|
Switzerland
|
Eaton Switzerland Holding I GmbH
|
|
Switzerland
|
Eaton Switzerland Holding II GmbH
|
|
Switzerland
|
Centralion Industrial Inc.
|
|
Taiwan
|
Eaton Phoenixtec MMPL Co. Ltd.
|
|
Taiwan
|
RTE Far East Corporation
|
|
Taiwan
|
Eaton Electric (Thailand) Ltd.
|
|
Thailand
|
Eaton Electric Company Ltd.
|
|
Thailand
|
Eaton Industries (Thailand) Ltd.
|
|
Thailand
|
Eaton Elektrik Ticaret Limited Sirketi
|
|
Turkey
|
Polimer Kaucuk Sanayi ve Pazarlama A.S.
|
|
Turkey
|
D.P. Eaton Electric
|
|
Ukraine
|
Cooper Crouse-Hinds (LLC)
|
|
United Arab Emirates
|
Cooper Industries FZE
|
|
United Arab Emirates
|
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 28, 2018
|
|
|
|
/s/ Craig Arnold
|
|
/s/ Richard H. Fearon
|
|
Craig Arnold, Chairman; Principal Executive Officer; Director
|
|
Richard H. Fearon, Principal Financial Officer; Director
|
|
|
|
|
|
|
|
|
|
|
|
/s/ Todd M. Bluedorn
|
|
Ken D. Semelsberger, Principal Accounting Officer
|
|
Todd M. Bluedorn, Director
|
|
|
|
|
|
|
|
|
|
/s/ Christopher M. Connor
|
|
/s/ Michael J. Critelli
|
|
Christopher M. Connor, Director
|
|
Michael J. Critelli, Director
|
|
|
|
|
|
|
|
|
|
/s/ Charles E. Golden
|
|
/s/ Arthur E. Johnson
|
|
Charles E. Golden, Director
|
|
Arthur E. Johnson, Director
|
|
|
|
|
|
|
|
|
|
/s/ Deborah L. McCoy
|
|
|
|
Deborah L. McCoy, Director
|
|
Gregory R. Page, Director
|
|
|
|
|
|
|
|
|
|
/s/ Sandra Pianalto
|
|
/s/ Gerald B. Smith
|
|
Sandra Pianalto, Director
|
|
Gerald B. Smith, Director
|
|
|
|
|
|
|
|
|
|
/s/ Dorothy C. Thompson
|
|
|
|
Dorothy C. Thompson, Director
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 28, 2018
|
|
/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 28, 2018
|
|
/s/ Richard H. Fearon
|
|
||
|
|
|
Richard H. Fearon
|
|
||
|
|
|
Principal Financial Officer
|
|
Date:
|
February 28, 2018
|
|
/s/ Craig Arnold
|
|
||
|
|
|
Craig Arnold
|
|
||
|
|
|
Principal Executive Officer
|
|
Date:
|
February 28, 2018
|
|
/s/ Richard H. Fearon
|
|
||
|
|
|
Richard H. Fearon
|
|
||
|
|
|
Principal Financial Officer
|
|