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BUSINESS SEGMENT AND GEOGRAPHIC REGION INFORMATION
 12 Months Ended
Dec. 31, 2023
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, construction, 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, 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 heavy-, medium-, and light-duty trucks, SUVs, CUVs, passenger cars, construction, agriculture, material handling and mining equipment.
Other Information
No single customer represented greater than 10% of net sales in 2023, 2022 or 2021, 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 (loss) includes the operating profit from intersegment sales.
Corporate includes all the Company's amortization of intangible assets, interest expense - net and restructuring program charges (Note 17) and the non-service cost portion of pension and other postretirement benefits income. 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)202320222021
Net sales
Electrical Americas$10,098 $8,497 $7,242 
Electrical Global6,084 5,848 5,516 
Hydraulics— — 1,300 
Aerospace3,413 3,039 2,648 
Vehicle2,965 2,830 2,579 
eMobility636 538 343 
Total net sales$23,196 $20,752 $19,628 
Segment operating profit (loss)
Electrical Americas$2,675 $1,913 $1,495 
Electrical Global1,176 1,134 1,034 
Hydraulics— — 177 
Aerospace780 705 580 
Vehicle482 453 449 
eMobility(21)(9)(29)
Total segment operating profit5,093 4,196 3,706 
Corporate
Intangible asset amortization expense(450)(499)(444)
Interest expense - net(151)(144)(144)
Pension and other postretirement benefits income46 43 65 
Restructuring program charges(57)(33)(78)
Other expense - net(654)(653)(209)
Income before income taxes3,827 2,911 2,896 
Income tax expense604 445 750 
Net income3,223 2,465 2,146 
Less net income for noncontrolling interests(5)(4)(2)
Net income attributable to Eaton ordinary shareholders$3,218 $2,462 $2,144 
(In millions)202320222021
Identifiable assets
Electrical Americas$4,163 $3,655 $3,002 
Electrical Global2,868 2,658 2,579 
Aerospace2,276 1,859 1,729 
Vehicle2,251 2,230 1,985 
eMobility563 402 220 
Total identifiable assets12,121 10,804 9,515 
Goodwill14,977 14,796 14,751 
Other intangible assets5,091 5,485 5,855 
Corporate6,243 3,929 3,906 
Total assets$38,432 $35,014 $34,027 
Capital expenditures for property, plant and equipment
Electrical Americas$309 $181 $180 
Electrical Global142 151 120 
Hydraulics— — 34 
Aerospace97 92 78 
Vehicle96 95 112 
eMobility76 52 27 
Total721 571 551 
Corporate36 28 24 
Total expenditures for property, plant and equipment$757 $598 $575 
Depreciation of property, plant and equipment
Electrical Americas$108 $101 $105 
Electrical Global96 94 97 
Aerospace69 64 69 
Vehicle92 89 95 
eMobility21 16 8 
Total386 364 374 
Corporate43 44 52 
Total depreciation of property, plant and equipment$429 $408 $426 
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)202320222021
Net sales
United States$14,071 $12,353 $10,868 
Canada949 754 797 
Latin America1,549 1,504 1,160 
Europe4,339 3,957 4,276 
Asia Pacific2,288 2,185 2,527 
Total$23,196 $20,752 $19,628 
Long-lived assets
United States$1,773 $1,567 $1,593 
Canada31 25 25 
Latin America476 383 277 
Europe797 711 701 
Asia Pacific453 460 468 
Total$3,530 $3,146 $3,064