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EATON SHAREHOLDERS' EQUITY
 12 Months Ended
Dec. 31, 2021
Equity [Abstract]  
EATON SHAREHOLDERS' EQUITY EATON SHAREHOLDERS' EQUITY
There are 750 million Eaton ordinary shares authorized ($0.01 par value per share), 398.8 million and 398.1 million of which were issued and outstanding at December 31, 2021 and 2020, respectively. Eaton's Memorandum and Articles of Association authorized 40 thousand deferred ordinary shares (€1.00 par value per share) and 10 thousand preferred A shares ($1.00 par value per share), all of which were issued and outstanding at December 31, 2021 and 2020, and 10 million serial preferred shares ($0.01 par value per share), none of which is outstanding at December 31, 2021 and 2020. At December 31, 2021, there were 10,447 holders of record of Eaton ordinary shares. Additionally, 14,835 current and former employees were shareholders through participation in the Eaton Savings Plan, the Eaton Personal Investment Plan, or the Eaton Puerto Rico Retirement Savings Plan.
On February 27, 2019, the Board of Directors adopted a share repurchase program for share repurchases up to $5.0 billion of ordinary shares (2019 Program). Under the 2019 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 2021 and 2020, 0.9 million and 17.1 million ordinary shares, respectively, were repurchased under the 2019 Program in the open market at a total cost of $122 million and $1,608 million, respectively. On February 23, 2022, the Board renewed the 2019 Program by providing authority for up to $5.0 billion in repurchases to be made during the three-year period commencing on that date (2022 Program).
Eaton has deferral plans that permit certain employees and directors to defer a portion of their compensation. A trust contains $4 million and $3 million of ordinary shares and marketable securities at December 31, 2021 and 2020, respectively, to fund a portion of these liabilities. The marketable securities were included in Other assets and the ordinary shares were included in Shareholders' equity at historical cost.
On February 23, 2022, Eaton's Board of Directors declared a quarterly dividend of $0.81 per ordinary share, a 7% increase over the dividend paid in the fourth quarter of 2021. The dividend is payable on March 31, 2022 to shareholders of record on March 11, 2022.
Comprehensive Income (Loss)
Comprehensive income (loss) consists primarily of net income, currency translation and related hedging instruments, changes in unrecognized costs of pension and other postretirement benefits, and changes in the effective portion of open derivative contracts designated as cash flow hedges. The following table summarizes the pre-tax and after-tax amounts recognized in Comprehensive income (loss):
202120202019
(In millions)Pre-taxAfter-taxPre-taxAfter-taxPre-taxAfter-tax
Currency translation and related hedging instruments
Gain (loss) from currency translation and related hedging
   instruments		$(335)$(339)$154 $164 $15 $16 
Translation reclassified to earnings369 369 37 37 — — 
34 30 191 201 15 16 
Pensions and other postretirement benefits
Prior service credit (cost) arising during the year(1)(1)(1)(1)(2)(2)
Net gain (loss) arising during the year448 337 (263)(203)(294)(232)
Currency translation24 19 (48)(37)(16)(13)
Other— — (2)(1)— — 
Amortization of actuarial loss and prior service cost
   reclassified to earnings		183 140 221 169 148 117 
654 495 (93)(73)(164)(130)
Cash flow hedges
Gain (loss) on derivatives designated as cash flow hedges50 39 (60)(47)(33)(27)
Changes in cash flow hedges reclassified to earnings(3)(2)17 14 (5)(4)
47 37 (43)(33)(38)(31)
Other comprehensive income (loss) attributable to Eaton ordinary shareholders$735 $562 $55 $95 $(187)$(145)
The changes in Accumulated other comprehensive loss are as follows:
(In millions)Currency translation and related hedging instrumentsPensions and other postretirement benefitsCash flow
hedges		Total
Balance at January 1, 2021$(2,647)$(1,481)$(67)$(4,195)
Other comprehensive income (loss) before
    reclassifications		(339)355 39 55 
Amounts reclassified from Accumulated other
   comprehensive loss (income)		369 140 (2)507 
Net current-period Other comprehensive
   income 		30 495 37 562 
Balance at December 31, 2021$(2,617)$(986)$(30)$(3,633)

The reclassifications out of Accumulated other comprehensive loss are as follows:
(In millions)December 31, 2021Consolidated Statements of
Income classification
Currency translation losses
Sale of business$(369)Gain on sale of businesses
Tax benefit— 
Total, net of tax(369)
Amortization of defined benefits pension and other
   postretirement benefits items
Actuarial loss and prior service cost(183)
1
Tax benefit43 
Total, net of tax(140)
Gains and (losses) on cash flow hedges
Currency exchange contracts(6)Net sales and Cost of products sold
Commodity contracts9 Cost of products sold
Tax expense(1)
Total, net of tax2 
Total reclassifications for the period$(507)
1 These components of Accumulated other comprehensive loss are included in the computation of net periodic benefit cost. See Note 9 for additional information about defined benefits 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 is as follows:
(In millions except for per share data)202120202019
Net income attributable to Eaton ordinary shareholders$2,144 $1,410 $2,211 
Weighted-average number of ordinary shares outstanding - diluted401.6 404.0 420.8 
Less dilutive effect of equity-based compensation2.9 1.8 1.8 
Weighted-average number of ordinary shares outstanding - basic398.7 402.2 419.0 
Net income per share attributable to Eaton ordinary shareholders
Diluted$5.34 $3.49 $5.25 
Basic5.38 3.51 5.28 
In 2021, all stock options were included in the calculation of diluted net income per share attributable to Eaton ordinary shareholders because they were all dilutive. In 2020 and 2019, 0.6 million and 0.8 million of 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.