Investor Presentaiton
Note 16. RESTRUCTURING CHARGES
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 brought on by the
COVID-19 pandemic. Since the inception of the program, the Company has incurred charges of $325 million. These
restructuring activities are expected to be completed in 2023 with total estimated charges of $350 million cumulatively for the
entire program. The remaining charges in 2023 are expected to relate primarily to plant closing and other costs.
A summary of restructuring program charges (income) is as follows:
(In millions except per share data)
Workforce reductions
Plant closing and other
Total before income taxes¹
2022
2021
2020
$
(13) $
21 $
172
47
57
42
33
78
214
Income tax benefit
4
18
44
Total after income taxes
$
29
$
60 $
170
Per ordinary share - diluted
$
0.07 $
0.15 $
0.42
Restructuring program charges (income) related to the following segments:
(In millions)
2022
2021
2020
Electrical Americas
17 $
14
18
Electrical Global
14
18
55
Aerospace
8
8
34
Vehicle
(15)
21
102
eMobility
1
1
1
Corporate
8
16
4
Total¹
$
33 $
78 $
214
A summary of liabilities related to workforce reductions, plant closing and other associated costs is as follows:
Workforce
Plant closing
(In millions)
reductions
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
$
Liability recognized
21
Payments, utilization and translation
(64)
355
3 $
142
78
(52)
(116)
Balance at December 31, 2021
$
96 $
8 $
104
Liability recognized, net'
(13)
47
33
Payments, utilization and translation
(45)
(51)
(96)
Balance at December 31, 2022
$
38
$
4 $
41
'The restructuring program liability was adjusted by $30 million in the fourth quarter of 2022 related to true-ups for completed workforce
reductions and the decision not to close a facility in the Vehicle segment that was previously included in the program.
These restructuring program charges (income) were included in Cost of products sold, Selling and administrative expense,
Research and development expense, or Other expense (income) - net, as appropriate. In Business Segment Information, these
restructuring program charges are treated as Corporate items. See Note 17 for additional information about business segments.
72View entire presentation