ACQUISITION INTEGRATION AND RESTRUCTURING CHARGES

Eaton incurs integration charges and transaction costs related to acquired businesses. A summary of these charges follows:



	Three months ended September 30				Nine months ended September 30
	2014		2013		2014		2013
Acquisition integration charges
Electrical Products	$	8	$	9	$	49	$	24
Electrical Systems and Services	4		10		43		26
Hydraulics	2		8		11		28
Total business segments	14		27		103		78
Corporate	5		9		19		21
Total acquisition integration charges	19		36		122		99

Transaction costs
Corporate	—		2		—		9
Total transaction costs	—		2		—		9

Total acquisition integration charges and transaction costs before income taxes	$	19	$	38	$	122	$	108
Total after income taxes	$	14	$	26	$	81	$	73
Per ordinary share - diluted	$	0.03	$	0.05	$	0.17	$	0.15

Business segment integration charges in 2014 were related primarily to the integration of Cooper. Business segment integration charges in 2013 were related primarily to the integrations of Cooper and Polimer Kaucuk Sanayi ve Pazarlama. These charges were included in Cost of products sold or Selling and administrative expense, as appropriate. In Business Segment Information the charges reduced Operating profit of the related business segment.

Corporate integration charges in 2014 and 2013 were related to the acquisition of Cooper. These charges were included in Selling and administrative expense. In Business Segment Information the charges were included in Other corporate expense - net.

Acquisition-related transaction costs, such as investment banking, legal, other professional fees, and costs associated with change in control agreements, are not included as a component of consideration transferred in an acquisition but are expensed as incurred. Acquisition-related transaction costs in 2013 were related to the acquisition of Cooper. These charges were included in Selling and administrative expense, Interest expense - net and Other (income) expense - net. In Business Segment Information the charges were included in Interest expense - net and Other corporate expense - net.

See Note 2 for additional information about business acquisitions.

Restructuring Charges

During 2014 and 2013, Eaton undertook restructuring activities related to the acquisition and integration of Cooper in an effort to gain efficiencies in selling, marketing, traditional back-office functions and manufacturing and distribution. These actions, comprised primarily of severance costs, resulted in charges totaling $71 during the first nine months of 2014, of which $38 and $33 were recognized in the Electrical Products and Electrical Systems and Services business segments, respectively, and $26 during the first nine months 2013, of which $14 and $12 were recognized in the Electrical Products and Electrical Systems and Services business segments, respectively. These restructuring initiatives are expected to continue through 2015.

During April 2014, Eaton undertook certain restructuring activities in an effort to gain efficiencies in the Vehicle, Hydraulics and Aerospace business segments. These actions, comprised primarily of severance costs, resulted in charges totaling $38 during the first nine months of 2014, of which $23, $13 and $2 were recognized in the Vehicle, Hydraulics and Aerospace business segments, respectively.

Restructuring charges were included in Cost of products sold or Selling and administrative expense, as appropriate. In Business Segment Information, the charges reduced Operating profit of the related business segment. See Note 13 for additional information about business segments. As of September 30, 2014 and December 31, 2013, liabilities related to restructuring actions totaled $74 and $32, respectively.