EQUITY

On October 22, 2013, Eaton's Board of Directors adopted a share repurchase program (2013 Program) that authorizes the repurchase of 40 million ordinary shares. During the first quarter of 2016, 1.5 million ordinary shares were repurchased under the 2013 Program in the open market at a total cost of $82. During the three and nine months ended September 30, 2015, 4.8 million and 7.2 million ordinary shares were repurchased under the 2013 Program in the open market at a total cost of $284 and $454, respectively. On February 24, 2016, the Board of Directors approved a new share repurchase program for share repurchases up to $2,500 of ordinary shares (2016 Program). Under the 2016 Program, the ordinary shares are expected to be repurchased over time, depending on market conditions, the market price of ordinary shares, capital levels, and other considerations. During the three and nine months ended September 30, 2016, 3.7 million and 7.7 million ordinary shares, respectively, were purchased on the open market under the 2016 Program for a total cost of $243 and $485, respectively.

The changes in Shareholders’ equity follow:



	Eaton shareholders’ equity			Noncontrolling interests			Total equity
Balance at December 31, 2015	$	15,186		$	45		$	15,231
Net income (loss)	1,418			(1		)	1,417
Other comprehensive income	42			—			42
Cash dividends paid	(780		)	(2		)	(782		)
Issuance of shares under equity-based compensation plans - net	105			—			105
Repurchase of shares	(567		)	—			(567		)
Balance at September 30, 2016	$	15,404		$	42		$	15,446

The changes in Accumulated other comprehensive loss follow:



	Currency translation and related hedging instruments			Pensions and other postretirement benefits			Cash flow hedges			Total
Balance at December 31, 2015	$	(2,492	)	$	(1,374	)	$	3		$	(3,863	)
Other comprehensive (loss) income before reclassifications	(57		)	33			(35		)	(59		)
Amounts reclassified from Accumulated other comprehensive loss (income)	—			99			2			101
Net current-period Other comprehensive income (loss)	(57		)	132			(33		)	42
Balance at September 30, 2016	$	(2,549	)	$	(1,242	)	$	(30	)	$	(3,821	)

The reclassifications out of Accumulated other comprehensive loss follow:



	Nine months ended September 30, 2016				Consolidated statements of income classification
Amortization of defined benefit pensions and other postretirement benefits items
Actuarial loss and prior service cost	$	(151	)	¹
Tax benefit	52
Total, net of tax	(99		)

Gains and (losses) on cash flow hedges
Currency exchange contracts	(3		)		Cost of products sold
Tax benefit	1
Total, net of tax	(2		)

Total reclassifications for the period	$	(101	)

¹ These components of Accumulated other comprehensive loss are included in the computation of net periodic benefit cost. See Note 7 for additional information about pension and other postretirement benefits items.

Net Income Per Share Attributable to Eaton Ordinary Shareholders

A summary of the calculation of net income per share attributable to Eaton ordinary shareholders follows:



	Three months ended September 30				Nine months ended September 30
(Shares in millions)	2016		2015		2016		2015
Net income attributable to Eaton ordinary shareholders	$	523	$	446	$	1,418	$	1,447

Weighted-average number of ordinary shares outstanding - diluted	455.6		466.4		457.9		468.5
Less dilutive effect of equity-based compensation	1.7		1.3		1.4		1.7
Weighted-average number of ordinary shares outstanding - basic	453.9		465.1		456.5		466.8

Net income per share attributable to Eaton ordinary shareholders
Diluted	$	1.15	$	0.96	$	3.09	$	3.09
Basic	1.15		0.96		3.10		3.10

For the third quarter and first nine months of 2016, 1.5 million and 1.8 million stock options, respectively, were excluded from the calculation of diluted net income per share attributable to Eaton ordinary shareholders because the exercise price of the options exceeded the average market price of the ordinary shares during the period and their effect, accordingly, would have been antidilutive. For the third quarter and first nine months of 2015, 1.8 million and 1.3 million stock options, respectively, were excluded from the calculation of diluted net income per share attributable to Eaton ordinary shareholders because the exercise price of the options exceeded the average market price of the ordinary shares during the periods and their effect, accordingly, would have been antidilutive.