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BUSINESS SEGMENT AND GEOGRAPHIC REGION INFORMATION | 12 Months Ended
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Dec. 31, 2021
Segment Reporting [Abstract] |
BUSINESS SEGMENT AND GEOGRAPHIC REGION INFORMATION | BUSINESS SEGMENT AND GEOGRAPHIC REGION 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. Eaton’s segments are as follows: Electrical Americas and Electrical Global The Electrical Americas segment consists of electrical components, industrial components, power distribution and assemblies, residential products, single phase power quality and connectivity, three phase power quality, wiring devices, circuit protection, utility power distribution, power reliability equipment, and services that are primarily produced and sold in North and South America. The Electrical Global segment consists of electrical components, industrial components, power distribution and assemblies, single phase and three phase power quality, and services that are primarily produced and sold outside of North and South America; as well as hazardous duty electrical equipment, emergency lighting, fire detection, intrinsically safe explosion-proof instrumentation, and structural support systems that are produced and sold globally. The principal markets for these segments are industrial, institutional, governmental, utility, commercial, residential and information technology. These products are used wherever there is a demand for electrical power in commercial buildings, data centers, residences, apartment and office buildings, hospitals, factories, utilities, and industrial and energy facilities. The segments share certain common global customers, but a large number of customers are located regionally. Sales are made through distributors, resellers, and manufacturers' representatives, as well as directly to original equipment manufacturers, utilities, and certain other end users. Hydraulics On August 2, 2021, Eaton completed the sale of the Hydraulics business to Danfoss A/S. The Hydraulics business sold hydraulics components, systems and services for industrial and mobile equipment. The Hydraulics business offered a wide range of power products including pumps, motors and hydraulic power units; a broad range of controls and sensing products including valves, cylinders and electronic controls; a full range of fluid conveyance products including industrial and hydraulic hose, fittings, and assemblies, thermoplastic hose and tubing, couplings, connectors, and assembly equipment; industrial drum and disc brakes. Historically, the principal markets for the Hydraulics business included renewable energy, marine, agriculture, oil and gas, construction, mining, forestry, utility, material handling, truck and bus, machine tools, molding, primary metals, and power generation. Key manufacturing customers in these markets and other customers were located globally. Products were sold and serviced through a variety of channels. Aerospace The Aerospace segment is a leading global supplier of aerospace fuel, hydraulics, and pneumatic systems for commercial and military use, as well as filtration systems for industrial applications. Products include hydraulic power generation systems for aerospace applications including pumps, motors, hydraulic power units, hose and fittings, electro-hydraulic pumps; controls and sensing products including valves, cylinders, electronic controls, electromechanical actuators, sensors, aircraft flap and slat systems and nose wheel steering systems; fluid conveyance products, including hose, thermoplastic tubing, fittings, adapters, couplings, sealing and ducting; fuel systems including air-to-air refueling systems, fuel pumps, fuel inerting products, sensors, valves, adapters and regulators; mission systems including oxygen generation system, payload carriages, and thermal management products; high performance interconnect products including wiring connectors and cables. The Aerospace segment also includes filtration systems including hydraulic filters, bag filters, strainers and cartridges; and golf grips. The principal markets for the Aerospace segment are manufacturers of commercial and military aircraft and related after-market customers, as well as industrial applications. These manufacturers and other customers operate globally. Products are sold and serviced through a variety of channels. Vehicle The Vehicle segment is a leader in the design, manufacture, marketing, and supply of: drivetrain, powertrain systems and critical components that reduce emissions and improve fuel economy, stability, performance, and safety of cars, light trucks, and commercial vehicles. Products include transmissions and transmission components, clutches, hybrid power systems, superchargers, engine valves and valve actuation systems, locking and limited slip differentials, transmission controls, and fuel vapor components for the global vehicle industry. The principal markets for the Vehicle segment are original equipment manufacturers and aftermarket customers of heavy-, medium-, and light-duty trucks, SUVs, CUVs, passenger cars and agricultural equipment. eMobility The eMobility segment designs, manufactures, markets, and supplies mechanical, 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 principle markets for the eMobility segment are original equipment manufacturers and aftermarket customers of passenger cars, commercial vehicles, and construction, agriculture, and mining equipment. Other Information No single customer represented greater than 10% of net sales in 2021, 2020 or 2019, respectively. The accounting policies of the business segments are generally the same as the policies described in Note 1, except that, as described further in the following paragraph, certain items are not allocated to the businesses. Intersegment sales and transfers are accounted for at the same prices as if the sales and transfers were made to third parties. These intersegment sales are eliminated in consolidation. Operating profit includes the operating profit from intersegment sales. Corporate includes all the Company's amortization of intangible assets, interest expense-net and restructuring program costs (Note 16) and the non-service cost portion of pensions and other postretirement benefits expense. Other expense-net includes all the Company's costs associated with acquisitions, divestitures, and gains and losses on the sale of certain businesses and other items that are of a corporate or functional governance nature. For purposes of business segment performance measurement, a portion of corporate costs, excluding amortization of intangibles assets, acquisition integration and divestiture costs, and restructuring program charges, are allocated to the businesses. These allocations are periodically adjusted to pass on year-over-year cost savings or increases to the businesses in a manner that is consistent with how the chief operating decision maker assesses performance. Identifiable assets of the business segments exclude goodwill, other intangible assets, and general corporate assets, which principally consist of certain cash, short-term investments, deferred income taxes, certain accounts receivable, certain property, plant and equipment, and certain other assets. Business Segment Information
(In millions) | 2021 |  | 2020 |  | 2019
Net sales |  |  |  |  |
Electrical Americas | $ | 7,242 |  |  | $ | 6,680 |  |  | $ | 8,175 |
Electrical Global | 5,516 |  |  | 4,703 |  |  | 5,172 |
Hydraulics | 1,300 |  |  | 1,842 |  |  | 2,204 |
Aerospace | 2,648 |  |  | 2,223 |  |  | 2,480 |
Vehicle | 2,579 |  |  | 2,118 |  |  | 3,038 |
eMobility | 343 |  |  | 292 |  |  | 321 |
Total net sales | $ | 19,628 |  |  | $ | 17,858 |  |  | $ | 21,390 |
Segment operating profit (loss) |  |  |  |  |
Electrical Americas | $ | 1,495 |  |  | $ | 1,352 |  |  | $ | 1,549 |
Electrical Global | 1,034 |  |  | 750 |  |  | 897 |
Hydraulics | 177 |  |  | 186 |  |  | 193 |
Aerospace | 580 |  |  | 414 |  |  | 595 |
Vehicle | 449 |  |  | 243 |  |  | 460 |
eMobility | (29) |  |  | (8) |  |  | 17 |
Total segment operating profit | 3,706 |  |  | 2,937 |  |  | 3,711 |
Corporate |  |  |  |  |
Intangible asset amortization expense | (444) |  |  | (354) |  |  | (367) |
Interest expense - net | (144) |  |  | (149) |  |  | (199) |
Pension and other postretirement benefits income (expense) | 65 |  |  | (40) |  |  | (12) |
Restructuring program charges | (78) |  |  | (214) |  |  | — |
Other expense - net | (209) |  |  | (434) |  |  | (542) |
Income before income taxes | 2,896 |  |  | 1,746 |  |  | 2,591 |
Income tax expense | 750 |  |  | 331 |  |  | 378 |
Net income | 2,146 |  |  | 1,415 |  |  | 2,213 |
Less net income for noncontrolling interests | (2) |  |  | (5) |  |  | (2) |
Net income attributable to Eaton ordinary shareholders | $ | 2,144 |  |  | $ | 1,410 |  |  | $ | 2,211 |
(In millions) | 2021 |  | 2020 |  | 2019
Identifiable assets |  |  |  |  |
Electrical Americas | $ | 3,002 |  |  | $ | 2,333 |  |  | $ | 2,360 |
Electrical Global | 2,579 |  |  | 2,334 |  |  | 2,319 |
Hydraulics | — |  |  | — |  |  | 1,293 |
Aerospace | 1,729 |  |  | 1,363 |  |  | 1,562 |
Vehicle | 1,985 |  |  | 1,950 |  |  | 2,145 |
eMobility | 220 |  |  | 180 |  |  | 141 |
Total identifiable assets | 9,515 |  |  | 8,160 |  |  | 9,820 |
Goodwill | 14,751 |  |  | 12,903 |  |  | 13,456 |
Other intangible assets | 5,855 |  |  | 4,175 |  |  | 4,638 |
Corporate | 3,906 |  |  | 4,099 |  |  | 3,514 |
Assets held for sale | — |  |  | 2,487 |  |  | 1,377 |
Total assets | $ | 34,027 |  |  | $ | 31,824 |  |  | $ | 32,805 |
Capital expenditures for property, plant and equipment |  |  |  |  |
Electrical Americas | $ | 180 |  |  | $ | 95 |  |  | $ | 160 |
Electrical Global | 120 |  |  | 71 |  |  | 106 |
Hydraulics | 34 |  |  | 41 |  |  | 80 |
Aerospace | 78 |  |  | 59 |  |  | 61 |
Vehicle | 112 |  |  | 77 |  |  | 127 |
eMobility | 27 |  |  | 24 |  |  | 8 |
Total | 551 |  |  | 367 |  |  | 542 |
Corporate | 24 |  |  | 22 |  |  | 45 |
Total expenditures for property, plant and equipment | $ | 575 |  |  | $ | 389 |  |  | $ | 587 |
Depreciation of property, plant and equipment |  |  |  |  |
Electrical Americas | $ | 105 |  |  | $ | 101 |  |  | $ | 118 |
Electrical Global | 97 |  |  | 94 |  |  | 93 |
Hydraulics | — |  |  | — |  |  | 58 |
Aerospace | 69 |  |  | 53 |  |  | 37 |
Vehicle | 95 |  |  | 98 |  |  | 102 |
eMobility | 8 |  |  | 6 |  |  | 5 |
Total | 374 |  |  | 352 |  |  | 413 |
Corporate | 52 |  |  | 56 |  |  | 52 |
Total depreciation of property, plant and equipment | $ | 426 |  |  | $ | 408 |  |  | $ | 465 |
Geographic Region Information Net sales are measured based on the geographic destination of sales. Long-lived assets consist of property, plant and equipment - net.
(In millions) | 2021 |  | 2020 |  | 2019
Net sales |  |  |  |  |
United States | $ | 10,868 |  |  | $ | 10,044 |  |  | $ | 12,336 |
Canada | 797 |  |  | 757 |  |  | 941 |
Latin America | 1,160 |  |  | 939 |  |  | 1,312 |
Europe | 4,276 |  |  | 3,818 |  |  | 4,311 |
Asia Pacific | 2,527 |  |  | 2,300 |  |  | 2,490 |
Total | $ | 19,628 |  |  | $ | 17,858 |  |  | $ | 21,390 |
Long-lived assets |  |  |  |  |
United States | $ | 1,593 |  |  | $ | 1,510 |  |  | $ | 1,821 |
Canada | 25 |  |  | 25 |  |  | 24 |
Latin America | 277 |  |  | 249 |  |  | 316 |
Europe | 701 |  |  | 738 |  |  | 797 |
Asia Pacific | 468 |  |  | 442 |  |  | 538 |
Total | $ | 3,064 |  |  | $ | 2,964 |  |  | $ | 3,496 |

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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/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8924-108599 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8981-108599 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9031-108599 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (f) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8736-108599 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9054-108599 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8657-108599 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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