BUSINESS SEGMENT INFORMATION

6 Months Ended

Jun. 30, 2017

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 operating segments are Electrical Products, Electrical Systems and Services, Hydraulics, Aerospace and Vehicle. 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 2016 Form 10-K.



	Three months ended June 30						Six months ended June 30
	2017			2016			2017			2016
Net sales
Electrical Products	$	1,802		$	1,784		$	3,514		$	3,464
Electrical Systems and Services	1,414			1,429			2,747			2,771
Hydraulics	633			589			1,220			1,140
Aerospace	437			447			865			892
Vehicle	846			831			1,634			1,626
Total net sales	$	5,132		$	5,080		$	9,980		$	9,893

Segment operating profit
Electrical Products	$	314		$	322		$	611		$	593
Electrical Systems and Services	194			178			349			337
Hydraulics	74			59			134			100
Aerospace	81			83			160			163
Vehicle	139			137			247			255
Total segment operating profit	802			779			1,501			1,448

Corporate
Amortization of intangible assets	(96		)	(98		)	(190		)	(198		)
Interest expense - net	(60		)	(57		)	(121		)	(114		)
Pension and other postretirement benefits expense	(11		)	(13		)	(22		)	(27		)
Other corporate expense - net	(65		)	(58		)	(134		)	(114		)
Income before income taxes	570			553			1,034			995
Income tax expense	54			61			86			100
Net income	516			492			948			895
Less net income for noncontrolling interests	(1		)	(1		)	(1		)	—
Net income attributable to Eaton ordinary shareholders	$	515		$	491		$	947		$	895