RESTRUCTURING CHARGES

6 Months Ended

Jun. 30, 2021

Restructuring and Related Activities [Abstract]

In the second quarter of 2020, Eaton decided to undertake a multi-year restructuring program to reduce its cost structure and gain efficiencies in its business segments and at corporate in order to respond to declining market conditions. Restructuring charges incurred under this program were $214 in 2020 and $29 for the six months ended June 30, 2021. These restructuring activities are expected to incur additional expenses of $32 in 2021, and $5 in 2022, primarily comprised of plant closing costs and other costs, resulting in total estimated charges of $280 for the entire program.

A summary of restructuring program charges by type follows:


	Three months ended June 30				Six months ended June 30
	2021		2020		2021		2020
Workforce reductions	$	(2)	$	166	$	—	$	166
Plant closing and other	15		21		29		21
Total before income taxes	13		187		29		187
Income tax benefit	2		39		6		39
Total after income taxes	$	11	$	148	$	23	$	148
Per ordinary share - diluted	$	0.03	$	0.37	$	0.06	$	0.37

Restructuring program charges related to the following segments:


	Three months ended June 30				Six months ended June 30
	2021		2020		2021		2020
Electrical Americas	$	3	$	13	$	8	$	13
Electrical Global	—		51		2		51
Aerospace	2		30		3		30
Vehicle	5		90		11		90
eMobility	1		1		1		1
Corporate	2		2		4		2
Total	$	13	$	187	$	29	$	187

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


	Workforce reductions		Plant closing and other		Total
Balance at January 1, 2020	$	—	$	—	$	—
Liability recognized	172		42		214
Payments, utilization and translation	(33)		(39)		(72)
Balance at December 31, 2020	139		3		142
Liability recognized	—		29		29
Payments, utilization and translation	(39)		(18)		(57)

Balance at June 30, 2021	$	100	$	14	$	114

These restructuring program charges were included in Cost of products sold, Selling and administrative expense, Research and development expense, or Other (income) expense - net, as appropriate. In Business Segment Information, these restructuring program charges are treated as Corporate items. See Note 15 for additional information about business segments.