REVENUE RECOGNITION (Tables)

9 Months Ended

Sep. 30, 2018

Disaggregation of Revenue [Line Items]

Schedule of Disaggregation of Sales

	Three months ended September 30, 2018
Net sales	United States		Rest of World		Total
Electrical Products	$	1,055	$	734	$	1,789
Electrical Systems and Services	1,000		519		1,519
Hydraulics	301		369		670
	Original Equipment Manufacturers		Aftermarket, Distribution and End User
Aerospace	$	269	$	209	478
	Commercial		Passenger and Light Duty
Vehicle	$	451	$	425	876
eMobility					80
Total					$	5,412

	Nine months ended September 30, 2018
Net sales	United States		Rest of World		Total
Electrical Products	$	3,048	$	2,279	$	5,327
Electrical Systems and Services	2,877		1,536		4,413
Hydraulics	907		1,196		2,103
	Original Equipment Manufacturers		Aftermarket, Distribution and End User
Aerospace	$	799	$	600	1,399
	Commercial		Passenger and Light Duty
Vehicle	$	1,333	$	1,335	2,668
eMobility					240
Total					$	16,150

Schedule of Changes in Deferred Revenue Liabilities

Changes in the deferred revenue liabilities are as follows:

	Deferred Revenue
Balance at January 1, 2018	$	227
Customer deposits and billings	696
Revenue recognized in the period	(676		)
Translation	(6		)
Balance at September 30, 2018	$	241

Schedule of the Impact of Adoption of ASU 2014-09

Consolidated Balance Sheet		Balance at December 31, 2017		Adjustments due to ASU 2014-09			Balance at January 1, 2018
Assets
	Accounts receivable - net	$	3,943	$	(99	)	$	3,844
	Prepaid expenses and other current assets	679		129			808
	Deferred income taxes	253		1			254
Liabilities and shareholders' equity
	Other current liabilities	$	1,872	$	33		$	1,905
	Eaton shareholders' equity	17,253		(2		)	17,251

In accordance with the new revenue accounting requirements, the impact of the adoption on the financial statement line items within the accompanying financial statements was as follows:

	Three months ended September 30, 2018
Consolidated Statements of Income	As Reported		Adjustment			Balances without Adoption of ASC 606
Net sales	$	5,412	$	(5	)	$	5,407
Cost of products sold	3,597		(4		)	3,593
Income before income taxes	439		(1		)	438
Income tax expense	23		—			23
Net income	416		(1		)	415
Net income attributable to Eaton ordinary shareholders	$	416	$	(1	)	$	415

	Nine months ended September 30, 2018
Consolidated Statements of Income	As Reported		Adjustment			Balances without Adoption of ASC 606
Net sales	$	16,150	$	(23	)	$	16,127
Cost of products sold	10,841		(14		)	10,827
Income before income taxes	1,698		(9		)	1,689
Income tax expense	184		(2		)	182
Net income	1,514		(7		)	1,507
Net income attributable to Eaton ordinary shareholders	$	1,514	$	(7	)	$	1,507

	September 30, 2018
Condensed Consolidated Balance Sheets	As Reported		Adjustment			Balances without Adoption of ASC 606
Assets
Accounts receivable - net	$	4,027	$	58		$	4,085
Inventory	2,835		13			2,848
Prepaid expenses and other current assets	500		(105		)	395
Deferred income taxes	241		(1		)	240
Liabilities and shareholders’ equity
Other current liabilities	$	2,167	$	(30	)	$	2,137
Eaton shareholders' equity	$	16,789	$	(5	)	$	16,784