RESTRUCTURING CHARGES

12 Months Ended

Dec. 31, 2020

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. These restructuring activities are expected to incur additional expenses of $61 and $5 in 2021 and 2022, respectively, primarily comprised of plant closing and other costs, resulting in total estimated charges of $280 for the entire program.

A summary of restructuring program charges follows:


	2020
Workforce reductions	$	172
Plant closing and other	42
Total before income taxes	214
Income tax benefit	44
Total after income taxes	$	170
Per ordinary share - diluted	$	0.42

Restructuring program charges related to the following segments:


	2020
Electrical Americas		$	18
Electrical Global		55
Aerospace		34
Vehicle		102
eMobility		1
Corporate		4
Total		$	214

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

These restructuring program charges were included in Cost of products sold, Selling and administrative expense, Research and development expense, or Other expense - 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.