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Accounts Receivable and Inventory (Tables)
 12 Months Ended
Dec. 31, 2017
Accounts Receivable and Inventory [Abstract]  
Components of inventory
The components of inventory follow:
 
2017
 
2016
As adjusted
Raw materials
$
953

 
$
879

Work-in-process
471

 
395

Finished goods
1,196

 
1,072

Total inventory
$
2,620

 
$
2,346
Schedule of effects of retrospective application of change in accounting principal on financial statement line items
As a result of the retrospective application of this change in accounting method, the following financial statement line items within the accompanying financial statements were adjusted, as follows:
 
 
 
December 31, 2017
 
 
 
December 31, 2016
 
December 31, 2015
(In millions except for per share data)
 
As computed under LIFO
 
As reported under FIFO
 
Effect of change
 
As originally reported
 
As adjusted
 
Effect of change
 
As originally reported
 
As adjusted
 
Effect of change
 
 
 
TCJA
 
Other
 
 
 
 
 
 
Consolidated Statements of Income
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cost of products sold
 
$
13,770

 
$
13,756

 
$
—

 
$
(14
)
 
$
13,400

 
$
13,409

 
$
9

 
$
14,292

 
$
14,304

 
$
12

 
Income before income taxes
 
3,354

 
3,368

 
—

 
14

 
2,127

 
2,118

 
(9
)
 
2,145

 
2,133

 
(12
)
 
Income tax expense
 
391

 
382

 
(14
)
 
5

 
202

 
199

 
(3
)
 
164

 
159

 
(5
)
 
Net income
 
2,963

 
2,986

 
14

 
9

 
1,925

 
1,919

 
(6
)
 
1,981

 
1,974

 
(7
)
 
Net income attributable to Eaton ordinary shareholders
 
$
2,962

 
$
2,985

 
$
14

 
$
9

 
$
1,922

 
$
1,916

 
$
(6
)
 
$
1,979

 
$
1,972

 
$
(7
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income per ordinary share
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Diluted
 
$
6.63

 
$
6.68

 
$
0.03

 
$
0.02

 
$
4.21

 
$
4.20

 
$
(0.01
)
 
$
4.23

 
$
4.22

 
$
(0.01
)
 
Basic
 
$
6.66

 
$
6.71

 
$
0.03

 
$
0.02

 
$
4.22

 
$
4.21

 
$
(0.01
)
 
$
4.25

 
$
4.23

 
$
(0.02
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consolidated Statements of Comprehensive Income
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income
 
$
2,963

 
$
2,986

 
$
14

 
$
9

 
$
1,925

 
$
1,919

 
$
(6
)
 
$
1,981

 
$
1,974

 
$
(7
)
 
Net income attributable to Eaton ordinary shareholders
 
2,962

 
2,985

 
14

 
9

 
1,922

 
1,916

 
(6
)
 
1,979

 
1,972

 
(7
)
 
Total comprehensive income attributable to Eaton ordinary shareholders
 
$
4,006

 
$
4,029

 
$
14

 
$
9

 
$
1,337

 
$
1,331

 
$
(6
)
 
$
1,015

 
$
1,008

 
$
(7
)
 
 
 
December 31, 2017
 
December 31, 2016
 
December 31, 2015
(In millions except for per share data)
 
As computed under LIFO
 
As reported under FIFO
 
Effect of change
 
As originally reported
 
As adjusted
 
Effect of change
 
As originally reported
 
As adjusted
 
Effect of change
Consolidated Balance Sheets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Inventory
 
$
2,514

 
$
2,620

 
$
106

 
$
2,254

 
$
2,346

 
$
92

 
 
 
 
 
 
 
Deferred income taxes - noncurrent asset
 
253

 
253

 
—

 
360

 
325

 
(35
)
 
 
 
 
 
 
 
Deferred income taxes - noncurrent liability
 
512

 
538

 
26

 
321

 
321

 
—

 
 
 
 
 
 
 
Retained earnings
 
$
8,589

 
$
8,669

 
$
80

 
$
7,498

 
$
7,555

 
$
57

 
 
 
 
 


 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consolidated Statements of Cash Flows
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income
 
$
2,963

 
$
2,986

 
$
23

 
$
1,925

 
$
1,919

 
$
(6
)
 
$
1,981

 
$
1,974

 
$
(7
)
 
Deferred income taxes
 
(197
)
 
(206
)
 
(9
)
 
(80
)
 
(83
)
 
(3
)
 
(100
)
 
(105
)
 
(5
)
 
Inventory
 
$
(188
)
 
$
(202
)
 
$
(14
)
 
$
25

 
$
34

 
$
9

 
$
(20
)
 
$
(8
)
 
$
12




As a result of the retrospective application of this change in accounting principle, the following financial statement line items within the unaudited interim 2017 and 2016 quarterly condensed consolidated financial statements were adjusted, as follows:
 
(unaudited)
 
Three months ended
 
 
 
March 30, 2017
 
June 30, 2017
 
September 30, 2017
(In millions except for per share data)
 
As originally reported
 
As adjusted
 
Effect of change
 
As originally reported
 
As adjusted
 
Effect of change
 
As originally reported
 
As adjusted
 
Effect of change
Consolidated Statements of Income
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cost of products sold
 
$
3,310

 
$
3,307

 
$
(3
)
 
$
3,450

 
$
3,448

 
$
(2
)
 
$
3,469

 
$
3,466

 
$
(3
)
 
Income before income taxes
 
464

 
467

 
3

 
570

 
572

 
2

 
1,691

 
1,694

 
3

 
Income tax expense
 
32

 
33

 
1

 
54

 
55

 
1

 
292

 
293

 
1

 
Net income
 
432

 
434

 
2

 
516

 
517

 
1

 
1,399

 
1,401

 
2

 
Net income attributable to Eaton ordinary shareholders
 
$
432

 
$
434

 
$
2

 
$
515

 
$
516

 
$
1

 
$
1,399

 
$
1,401

 
$
2

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income per ordinary share
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Diluted
 
$
0.96

 
$
0.96

 
$
—

 
$
1.15

 
$
1.15

 
$
—

 
$
3.14

 
$
3.14

 
$
—

 
Basic
 
$
0.96

 
$
0.97

 
$
0.01

 
$
1.15

 
$
1.16

 
$
0.01

 
$
3.16

 
$
3.16

 
$
—

 
(unaudited)
 
Three months ended
 
 
 
March 30, 2016
 
June 30, 2016
 
September 30, 2016
(In millions except for per share data)
 
As originally reported
 
As adjusted
 
Effect of change
 
As originally reported
 
As adjusted
 
Effect of change
 
As originally reported
 
As adjusted
 
Effect of change
Consolidated Statements of Income
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cost of products sold
 
$
3,291

 
$
3,294

 
$
3

 
$
3,419

 
$
3,422

 
$
3

 
$
3,371

 
$
3,374

 
$
3

 
Income before income taxes
 
442

 
439

 
(3
)
 
553

 
550

 
(3
)
 
573

 
570

 
(3
)
 
Income tax expense
 
39

 
38

 
(1
)
 
61

 
60

 
(1
)
 
51

 
50

 
(1
)
 
Net income
 
403

 
401

 
(2
)
 
492

 
490

 
(2
)
 
522

 
520

 
(2
)
 
Net income attributable to Eaton ordinary shareholders
 
$
404

 
$
402

 
$
(2
)
 
$
491

 
$
489

 
$
(2
)
 
$
523

 
$
521

 
$
(2
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income per ordinary share
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Diluted
 
$
0.88

 
$
0.87

 
$
(0.01
)
 
$
1.07

 
$
1.07

 
$
—

 
$
1.15

 
$
1.14

 
$
(0.01
)
 
Basic
 
$
0.88

 
$
0.88

 
$
—

 
$
1.08

 
$
1.07

 
$
(0.01
)
 
$
1.15

 
$
1.15

 
$
—