RESTRUCTURING CHARGES

12 Months Ended

Dec. 31, 2024

Restructuring and Related Activities [Abstract]

RESTRUCTURING CHARGES

RESTRUCTURING CHARGES

In the second quarter of 2020, Eaton initiated a multi-year restructuring program to reduce its cost structure and gain efficiencies in its business segments and at corporate in order to initially respond to declining market conditions brought on by the COVID-19 pandemic. Since the inception of the program, the Company incurred expenses of $199 million for workforce reductions and $184 million for plant closing and other costs, resulting in total charges of $382 million through December 31, 2023. This multi-year restructuring program was substantially complete at the end of 2023, with final payments primarily made in 2024.

During the first quarter of 2024, Eaton implemented a new multi-year restructuring program to accelerate opportunities to optimize its operations and global support structure. These actions will better align the Company's functions to support anticipated growth and drive greater effectiveness throughout the Company. Restructuring charges incurred under this program were $202 million in 2024. This restructuring program is expected to be completed in 2026 and is expected to incur additional expenses related to workforce reductions of $183 million and plant closing and other costs of $90 million, resulting in total estimated charges of $475 million for the entire program.

A summary of restructuring program charges (income) is as follows:

(In millions except for per share data)	2024		2023		2022
Workforce reductions	$	120	$	19	$	(13)
Plant closing and other	83		38		47
Total before income taxes	202		57		33
Income tax benefit	43		11		4
Total after income taxes	$	160	$	46	$	29
Per ordinary share - diluted	$	0.40	$	0.11	$	0.07

Restructuring program charges (income) related to the following segments:

(In millions)	2024		2023		2022
Electrical Americas	$	12	$	5	$	17
Electrical Global	88		26		14
Aerospace	9		5		8
Vehicle	40		6		(15)
eMobility	25		7		1
Corporate	29		8		8
Total	$	202	$	57	$	33

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

(In millions)	Workforce reductions		Plant closing and other		Total
Balance at January 1, 2024	$	35	$	6	$	41
Liability recognized, net	120		83		202
Payments, utilization and translation	(59)		(81)		(141)
Balance at December 31, 2024	$	96	$	7	$	103

These restructuring program charges (income) were included in Cost of products sold, Selling and administrative expense, Research and development expense, or Other income – net, as appropriate. In Business Segment Information, these restructuring program charges are treated as Corporate items. See Note 19 for additional information about business segments.