Investor Presentaiton
Acquisition integration, divestiture charges and transaction costs in 2022 are primarily related to the acquisitions of Royal
Power Solutions, Souriau-Sunbank Connection Technologies, Green Motion, Tripp Lite, and Mission Systems, and other
charges to acquire and exit businesses including certain indemnity claims associated with the sale of 50% interest in the
commercial vehicle automated transmission business in 2017. These costs also included charges of $29 million presented in
Other expense (income) - - net on the Consolidated Statements of Income related to the decision in the second quarter to exit the
Company's business operations in Russia. These charges consisted primarily of write-downs of accounts receivable, inventory
and other assets, and accruals for severance. Charges in 2021 are primarily related to the divestiture of the Hydraulics business,
the acquisitions of Tripp Lite, Mission Systems, Souriau-Sunbank Connection Technologies, and Ulusoy Elektrik Imalat
Taahhut ve Ticaret A.S., and other charges to acquire and exit businesses including certain indemnity claims associated with the
sale of 50% interest in the commercial vehicle automated transmission business in 2017. Charges in 2020 are primarily related
to the divestitures of the Hydraulics business and the Lighting business, the acquisitions of Souriau-Sunbank, Ulusoy Elektrik,
and Power Distribution, Inc., and other charges to exit businesses. These charges were included in Cost of products sold,
Selling and administrative expense, Research and development expense, or Other expense (income) - net. In Business Segment
Information in Note 17, the charges were included in Other expense - net.
Restructuring
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 and projected mature year savings of $250 million when fully implemented. The remaining charges in 2023 are
expected to relate primarily to plant closing and other costs. Additional information related to this restructuring is presented in
Note 16.
Intangible Asset Amortization Expense
Intangible asset amortization expense is as follows:
(In millions except for per share data)
Intangible asset amortization
Income tax benefit
Total after income taxes
Per ordinary share - diluted
expense
2022
2021
2020
$
499 $ 444 $ 354
105
83
$
394 $
361 $
82
272
$
0.99 $
0.90 $
0.67
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