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Business Segment Information
 6 Months Ended
Jun. 30, 2013
Segment Reporting [Abstract]  
BUSINESS SEGMENT INFORMATION
BUSINESS SEGMENT INFORMATION
Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated on a regular basis by the chief operating decision maker, or decision making group, in deciding how to allocate resources to an individual segment and in assessing performance.
During the first quarter of 2013, Eaton re-segmented certain reportable operating segments due to a reorganization of the Company's businesses. The new reportable business segments are Electrical Products and Electrical Systems and Services (which include legacy Eaton and former Cooper electrical businesses), and Vehicle (which includes truck and automotive drivetrain and powertrain systems businesses). Previously reported segment financial information has been updated for all periods reported.
Electrical Products consists of electrical components, industrial controls, residential products, single phase power quality, emergency lighting, fire detection, wiring devices, structural support systems, circuit protection, and lighting products.
Electrical Systems and Services consists of power distribution and assemblies, three phase power quality, hazardous duty electrical equipment, intrinsically safe explosion-proof instrumentation, utility power distribution, power reliability equipment, and services.
 
Three months ended
June 30
 
Six months ended
June 30
 
2013
 
2012
 
2013
 
2012
Net sales
 
 
 
 
 
 
 
Electrical Products
$
1,758

 
$
903

 
$
3,418

 
$
1,789

Electrical Systems and Services
1,624

 
913

 
3,145

 
1,765

Hydraulics
772

 
769

 
1,528

 
1,504

Aerospace
446

 
436

 
880

 
866

Vehicle
1,002

 
1,047

 
1,941

 
2,104

Total net sales
$
5,602

 
$
4,068

 
$
10,912

 
$
8,028

 
 
 
 
 
 
 
 
Segment operating profit
 
 
 
 
 
 
 
Electrical Products
$
272

 
$
151

 
$
513

 
$
290

Electrical Systems and Services
227

 
91

 
437

 
167

Hydraulics
104

 
123

 
182

 
232

Aerospace
67

 
59

 
129

 
119

Vehicle
172

 
168

 
304

 
328

Total segment operating profit
842

 
592

 
1,565

 
1,136

 
 
 
 
 
 
 
 
Corporate
 
 
 
 
 
 
 
Amortization of intangible assets
(108
)
 
(42
)
 
(215
)
 
(84
)
Interest expense - net
(71
)
 
(30
)
 
(146
)
 
(58
)
Pension and other postretirement benefits expense
(43
)
 
(39
)
 
(81
)
 
(80
)
Inventory step-up adjustment
(1
)
 
(1
)
 
(34
)
 
(3
)
Other corporate expense - net
(85
)
 
(61
)
 
(155
)
 
(124
)
Income before income taxes
534

 
419

 
934

 
787

Income tax expense
37

 
37

 
57

 
94

Net income
497

 
382

 
877

 
693

Less net income for noncontrolling interests
(3
)
 
—

 
(5
)
 
—

Net income attributable to Eaton ordinary shareholders
$
494

 
$
382

 
$
872

 
$
693


Business segment operating profit was reduced by acquisition integration charges as follows:
 
Three months ended
June 30
 
Six months ended
June 30
 
2013
 
2012
 
2013
 
2012
Electrical Products
$
12

 
$
—

 
$
15

 
$
—

Electrical Systems and Services
11

 
5

 
16

 
7

Hydraulics
8

 
3

 
20

 
4

Total
$
31

 
$
8

 
$
51

 
$
11


Corporate acquisition integration charges totaled $6 and $12 for the second quarter and the first six months of 2013, respectively, and $1 for both the second quarter and the first six months of 2012. Corporate acquisition integration charges related primarily to the acquisition of Cooper and are included above in Other corporate expense - net.
Acquisition-related transaction costs, such as investment banking, legal and other professional fees are included above in Interest expense - net and Other corporate expense - net and are related to the acquisition of Cooper. These charges totaled $2 and $7 for the second quarter and the first six months of 2013, respectively, and $7 for both the second quarter and the first six months of 2012. See Note 3 for additional information about acquisition integration charges and transaction costs.
For additional information regarding Eaton’s business segments, see Note 14 to the Consolidated Financial Statements contained in the 2012 Form 10-K.