RESTRUCTURING CHARGES

9 Months Ended

Sep. 30, 2016

Restructuring and Related Activities [Abstract]

RESTRUCTURING CHARGES

RESTRUCTURING CHARGES

During 2015, Eaton announced its intention to undertake actions to reduce its cost structure in all business segments and at corporate. Restructuring charges for the three and nine months ended September 30, 2016, were $23 and $121, respectively, and were $113 and $127 for the three and nine months ended September 30, 2015, respectively. The charges associated with restructuring activities are anticipated to be $145 in 2016 and $180 in 2017.

A summary of restructuring charges by type follows:

	Three months ended September 30				Nine months ended September 30
	2016		2015		2016		2015
Workforce reductions	$	18	$	99	$	95	$	111
Plant closings and other	5		14		26		16
Total	$	23	$	113	$	121	$	127

A summary of restructuring charges by segment follows:

	Three months ended September 30					Nine months ended September 30
	2016			2015		2016		2015
Electrical Products	$	1		$	11	$	27	$	12
Electrical Systems & Services	7			26		20		26
Hydraulics	10			25		44		34
Aerospace	(1		)	5		3		5
Vehicle	5			29		22		33
Corporate	1			17		5		17
Total	$	23		$	113	$	121	$	127

A summary of liabilities related to workforce reductions, plant closings and other associated costs follows:

	Workforce reductions			Plant closings and other			Total
Balance at December 31, 2014	$	—		$	—		$	—
Liability recognized	112			17			129
Payments	(59		)	(3		)	(62		)
Other adjustments	1			(14		)	(13		)
Balance at December 31, 2015	54			—			54
Liability recognized	95			26			121
Payments	(89		)	(11		)	(100		)
Other adjustments	(1		)	(14		)	(15		)
Balance at September 30, 2016	$	59		$	1		$	60

These charges were included in Cost of products sold, Selling and administrative expenses or Other income-net, as appropriate. In Business Segment Information, the charges reduced Operating profit of the related business segment. See Note 14 for additional information about business segments.