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BUSINESS SEGMENT INFORMATION | 3 Months Ended
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Mar. 31, 2018
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 2018, Eaton re-segmented certain reportable operating segments due to a reorganization of the Company's businesses. The new reportable business segment is eMobility (which includes certain legacy Electrical Products and Vehicle product lines). The eMobility segment designs, manufactures, markets, and supplies electrical and electronic components and systems that improve the power management and performance of both on-road and off-road vehicles. Products include high voltage inverters, converters, fuses, onboard chargers, circuit protection units, vehicle controls, power distribution, fuel tank isolation valves, and commercial vehicle hybrid systems. The principal markets for the eMobility segment are original equipment manufacturers and aftermarket customers of passenger cars, commercial vehicles, and construction, agriculture, and mining equipment. Eaton’s operating segments are Electrical Products, Electrical Systems and Services, Hydraulics, Aerospace, Vehicle, and eMobility. Operating profit includes the operating profit from intersegment sales. For additional information regarding Eaton’s business segments, see Note 15 to the Consolidated Financial Statements contained in the 2017 Form 10-K.
| Three months ended March 31
| 2018 |  | 2017
Net sales |  |  |
Electrical Products | $ | 1,732 |  |  | $ | 1,651 |
Electrical Systems and Services | 1,381 |  |  | 1,333 |
Hydraulics | 710 |  |  | 587 |
Aerospace | 458 |  |  | 428 |
Vehicle | 893 |  |  | 786 |
eMobility | 77 |  |  | 63 |
Total net sales | $ | 5,251 |  |  | $ | 4,848 |
Segment operating profit |  |  |
Electrical Products | $ | 307 |  |  | $ | 286 |
Electrical Systems and Services | 167 |  |  | 155 |
Hydraulics | 90 |  |  | 60 |
Aerospace | 89 |  |  | 79 |
Vehicle | 132 |  |  | 108 |
eMobility | 11 |  |  | 11 |
Total segment operating profit | 796 |  |  | 699 |
Corporate |  |  |
Amortization of intangible assets | (98 | ) |  | (94 | )
Interest expense - net | (70 | ) |  | (61 | )
Pension and other postretirement benefits expense | (2 | ) |  | (11 | )
Other corporate expense - net | (61 | ) |  | (66 | )
Income before income taxes | 565 |  |  | 467 |
Income tax expense | 78 |  |  | 33 |
Net income | 487 |  |  | 434 |
Less net loss for noncontrolling interests | 1 |  |  | — |
Net income attributable to Eaton ordinary shareholders | $ | 488 |  |  | $ | 434 |
New Business Segments - Results of Operations For the reportable segments that were re-segmented, previously reported segment financial information has been updated for all periods reported in 2016 and 2017. The re-segmentation did not impact previously reported consolidated results of operations. Electrical Products
| Year ended December 31, 2017 |  | Quarter ended in 2017 |  | Year ended December 31, 2016 |  | Quarter ended in 2016
|  | Dec. 31 |  | Sept. 30 |  | June 30 |  | Mar. 31 |  |  | Dec. 31 |  | Sept. 30 |  | June 30 |  | Mar. 31
Net sales | $ | 6,917 |  |  | $ | 1,750 |  |  | $ | 1,785 |  |  | $ | 1,731 |  |  | $ | 1,651 |  |  | $ | 6,703 |  |  | $ | 1,665 |  |  | $ | 1,705 |  |  | $ | 1,717 |  |  | $ | 1,616 |
Operating profit | $ | 1,233 |  |  | $ | 318 |  |  | $ | 330 |  |  | $ | 299 |  |  | $ | 286 |  |  | $ | 1,186 |  |  | $ | 305 |  |  | $ | 317 |  |  | $ | 304 |  |  | $ | 260 |
Operating margin | 17.8 | % |  | 18.2 | % |  | 18.5 | % |  | 17.3 | % |  | 17.3 | % |  | 17.7 | % |  | 18.3 | % |  | 18.6 | % |  | 17.7 | % |  | 16.1 | %
Acquisition integration charges | $ | 4 |  |  | $ | 1 |  |  | $ | 1 |  |  | $ | 1 |  |  | $ | 1 |  |  | $ | 3 |  |  | $ | 1 |  |  | $ | 1 |  |  | $ | 1 |  |  | $ | — |
Before acquisition integration charges |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Operating profit | $ | 1,237 |  |  | $ | 319 |  |  | $ | 331 |  |  | $ | 300 |  |  | $ | 287 |  |  | $ | 1,189 |  |  | $ | 306 |  |  | $ | 318 |  |  | $ | 305 |  |  | $ | 260 |
Operating margin | 17.9 | % |  | 18.2 | % |  | 18.5 | % |  | 17.3 | % |  | 17.4 | % |  | 17.7 | % |  | 18.4 | % |  | 18.7 | % |  | 17.8 | % |  | 16.1 | %
Vehicle
| Year ended December 31, 2017 |  | Quarter ended in 2017 |  | Year ended December 31, 2016 |  | Quarter ended in 2016
|  | Dec. 31 |  | Sept. 30 |  | June 30 |  | Mar. 31 |  |  | Dec. 31 |  | Sept. 30 |  | June 30 |  | Mar. 31
Net sales | $ | 3,326 |  |  | $ | 837 |  |  | $ | 858 |  |  | $ | 845 |  |  | $ | 786 |  |  | $ | 3,141 |  |  | $ | 739 |  |  | $ | 784 |  |  | $ | 825 |  |  | $ | 793 |
Operating profit | $ | 541 |  |  | $ | 142 |  |  | $ | 150 |  |  | $ | 141 |  |  | $ | 108 |  |  | $ | 471 |  |  | $ | 97 |  |  | $ | 122 |  |  | $ | 135 |  |  | $ | 117 |
Operating margin | 16.3 | % |  | 17.0 | % |  | 17.5 | % |  | 16.7 | % |  | 13.7 | % |  | 15.0 | % |  | 13.1 | % |  | 15.6 | % |  | 16.4 | % |  | 14.8 | %
eMobility
| Year ended December 31, 2017 |  | Quarter ended in 2017 |  | Year ended December 31, 2016 |  | Quarter ended in 2016
|  | Dec. 31 |  | Sept. 30 |  | June 30 |  | Mar. 31 |  |  | Dec. 31 |  | Sept. 30 |  | June 30 |  | Mar. 31
Net sales | $ | 283 |  |  | $ | 73 |  |  | $ | 75 |  |  | $ | 72 |  |  | $ | 63 |  |  | $ | 266 |  |  | $ | 63 |  |  | $ | 64 |  |  | $ | 73 |  |  | $ | 66 |
Operating profit | $ | 50 |  |  | $ | 10 |  |  | $ | 16 |  |  | $ | 13 |  |  | $ | 11 |  |  | $ | 57 |  |  | $ | 11 |  |  | $ | 14 |  |  | $ | 20 |  |  | $ | 12 |
Operating margin | 17.7 | % |  | 13.7 | % |  | 21.3 | % |  | 18.1 | % |  | 17.5 | % |  | 21.4 | % |  | 17.5 | % |  | 21.9 | % |  | 27.4 | % |  | 18.2 | %

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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