Company Quick10K Filing
Eaton
Price82.49 EPS4
Shares422 P/E20
MCap34,852 P/FCF11
Net Debt7,464 EBIT2,242
TEV42,316 TEV/EBIT19
TTM 2019-09-30, in MM, except price, ratios
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8-K 2018-02-01

ETN 10Q Quarterly Report

Part I - Financial Information
Item 1.Financial Statements.
Note 1.Basis of Presentation
Note 2.Acquisitions and Divestitures of Businesses
Note 3. Revenue Recognition
Note 4. Credit Losses for Receivables
Note 5. Inventory
Note 6. Goodwill
Note 7. Debt
Note 8. Retirement Benefits Plans
Note 9. Legal Contingencies
Note 10. Income Taxes
Note 11. Equity
Note 12. Fair Value Measurements
Note 13. Derivative Financial Instruments and Hedging Activities
Note 14. Restructuring Charges
Note 15. Business Segment Information
Item 2.Management's Discussion and Analysis of Financial Condition and Results of Operations.
Item 3.Quantitative and Qualitative Disclosures About Market Risk.
Item 4.Controls and Procedures.
Part II - Other Information
Item 1.Legal Proceedings.
Item 1A.Risk Factors.
Item 2.Unregistered Sales of Equity Securities and Use of Proceeds.
Item 6.Exhibits.
EX-31.1 etn03312021ex311.htm
EX-31.2 etn03312021ex312.htm
EX-32.1 etn03312021ex321.htm
EX-32.2 etn03312021ex322.htm

Eaton Earnings 2021-03-31

Balance SheetIncome StatementCash Flow
957657381902012201420172020
Assets, Equity
10.08.06.04.02.00.02012201420172020
Rev, G Profit, Net Income
1.91.20.6-0.1-0.7-1.42012201420172020
Ops, Inv, Fin

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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
For the quarterly period ended March 31, 2021
Commission file number 000-54863
EATON CORPORATION plc
(Exact name of registrant as specified in its charter)
Ireland98-1059235
(State or other jurisdiction of incorporation or organization)(IRS Employer Identification Number)
Eaton House, 30 Pembroke Road,Dublin 4,IrelandD04 Y0C2
(Address of principal executive offices)(Zip Code)
+3531637 2900
(Registrant's telephone number, including area code)
Not applicable
(Former name, former address and former fiscal year if changed since last report)
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading SymbolName of each exchange on which registered
Ordinary shares ($0.01 par value)ETNNew York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes No
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes No
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer," “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act. (Check one):
Large Accelerated Filer Accelerated filer Non-accelerated filer
Smaller reporting company
 Emerging growth company
 (Do not check if a smaller reporting company)
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange
Act.
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes No
There were 398.5 million Ordinary Shares outstanding as of March 31, 2021.


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TABLE OF CONTENTS



Table of Contents
PART I — FINANCIAL INFORMATION

ITEM 1.FINANCIAL STATEMENTS.

EATON CORPORATION plc
CONSOLIDATED STATEMENTS OF INCOME
Three months ended
March 31
(In millions except for per share data)20212020
Net sales$4,692 $4,789 
Cost of products sold3,184 3,302 
Selling and administrative expense795 865 
Research and development expense148 153 
Interest expense - net38 34 
Gain on sale of business 221 
Other (income) expense - net(11)35 
Income before income taxes538 621 
Income tax expense79 183 
Net income459 438 
Less net income for noncontrolling interests(1) 
Net income attributable to Eaton ordinary shareholders$458 $438 
Net income per share attributable to Eaton ordinary shareholders
Diluted$1.14 $1.07 
Basic1.15 1.07 
Weighted-average number of ordinary shares outstanding
Diluted400.9 411.1 
Basic398.3 409.3 
Cash dividends declared per ordinary share$0.76 $0.73 

The accompanying notes are an integral part of these condensed consolidated financial statements.
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EATON CORPORATION plc
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Three months ended
March 31
(In millions)20212020
Net income$459 $438 
Less net income for noncontrolling interests(1) 
Net income attributable to Eaton ordinary shareholders458 438 
Other comprehensive income (loss), net of tax
Currency translation and related hedging instruments(172)(609)
Pensions and other postretirement benefits47 86 
Cash flow hedges95 (153)
Other comprehensive income (loss) attributable to Eaton
   ordinary shareholders
(30)(676)
Total comprehensive income (loss) attributable to Eaton
  ordinary shareholders
$428 $(238)

The accompanying notes are an integral part of these condensed consolidated financial statements.

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EATON CORPORATION plc
CONSOLIDATED BALANCE SHEETS
(In millions)March 31,
2021
December 31,
2020
Assets  
Current assets  
Cash$354 $438 
Short-term investments945 664 
Accounts receivable - net3,065 2,904 
Inventory2,399 2,109 
Assets held for sale2,537 2,487 
Prepaid expenses and other current assets605 576 
Total current assets9,905 9,178 
Property, plant and equipment
Land and buildings2,181 2,184 
Machinery and equipment5,363 5,404 
Gross property, plant and equipment7,544 7,588 
Accumulated depreciation(4,622)(4,624)
Net property, plant and equipment2,922 2,964 
Other noncurrent assets
Goodwill13,757 12,903 
Other intangible assets4,722 4,175 
Operating lease assets429 428 
Deferred income taxes436 426 
Other assets1,909 1,750 
Total assets$34,080 $31,824 
Liabilities and shareholders’ equity  
Current liabilities  
Short-term debt$464 $1 
Current portion of long-term debt1,012 1,047 
Accounts payable2,172 1,987 
Accrued compensation334 351 
Liabilities held for sale501 468 
Other current liabilities2,098 2,027 
Total current liabilities6,581 5,881 
Noncurrent liabilities  
Long-term debt8,682 7,010 
Pension liabilities1,283 1,588 
Other postretirement benefits liabilities326 330 
Operating lease liabilities328 326 
Deferred income taxes445 277 
Other noncurrent liabilities1,398 1,439 
Total noncurrent liabilities12,462 10,970 
Shareholders’ equity  
Ordinary shares (398.5 million outstanding in 2021 and 398.1 million in 2020)
4 4 
Capital in excess of par value12,335 12,329 
Retained earnings6,883 6,794 
Accumulated other comprehensive loss(4,225)(4,195)
Shares held in trust(2)(2)
Total Eaton shareholders’ equity14,995 14,930 
Noncontrolling interests42 43 
Total equity15,037 14,973 
Total liabilities and equity$34,080 $31,824 
The accompanying notes are an integral part of these condensed consolidated financial statements.
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EATON CORPORATION plc
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
Three months ended
March 31
(In millions)20212020
Operating activities  
Net income$459 $438 
Adjustments to reconcile to net cash provided by operating activities  
Depreciation and amortization208 199 
Deferred income taxes(39)(16)
Pension and other postretirement benefits expense14 54 
Contributions to pension plans(243)(38)
Contributions to other postretirement benefits plans(6)(4)
Gain on sale of business (91)
Changes in working capital(108)(246)
Other - net(25)27 
Net cash provided by operating activities260 323 
Investing activities  
Capital expenditures for property, plant and equipment(119)(112)
Cash paid for acquisitions of businesses, net of cash acquired(1,700)(195)
Proceeds from sale of business 1,402 
Sales (purchases) of short-term investments - net(280)30 
Payments for settlement of currency exchange contracts not designated as hedges - net(17)(16)
Other - net(85)(9)
Net cash provided by (used in) investing activities(2,201)1,100 
Financing activities  
Proceeds from borrowings2,261 83 
Payments on borrowings(3)(4)
Cash dividends paid(300)(291)
Exercise of employee stock options21 14 
Repurchase of shares(59)(1,300)
Employee taxes paid from shares withheld (37)(29)
Other - net(8)(3)
Net cash provided by (used in) financing activities1,875 (1,530)
Effect of currency on cash(11)(23)
Less: Increase in cash classified as held for sale(7)(1)
Decrease in cash(84)(131)
Cash at the beginning of the period438 370 
Cash at the end of the period$354 $239 

The accompanying notes are an integral part of these condensed consolidated financial statements.
5

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EATON CORPORATION plc
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
Amounts are in millions unless indicated otherwise (per share data assume dilution).
Note 1.BASIS OF PRESENTATION
The accompanying unaudited condensed consolidated financial statements of Eaton Corporation plc (Eaton or the Company) have been prepared in accordance with generally accepted accounting principles for interim financial information, the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by United States generally accepted accounting principles (US GAAP) for complete financial statements. However, in the opinion of management, all adjustments (consisting of normal recurring accruals) have been made that are necessary for a fair presentation of the condensed consolidated financial statements for the interim periods.
This Form 10-Q should be read in conjunction with the consolidated financial statements and related notes included in Eaton’s 2020 Form 10-K. The interim period results are not necessarily indicative of the results to be expected for the full year. Management has evaluated subsequent events through the date this Form 10-Q was filed with the Securities and Exchange Commission.
Note 2.ACQUISITIONS AND DIVESTITURES OF BUSINESSES
Acquisition of Power Distribution, Inc.
On February 25, 2020, Eaton acquired Power Distribution, Inc. a leading supplier of mission critical power distribution, static switching, and power monitoring equipment and services for data centers and industrial and commercial customers. The company is headquartered in Richmond, Virginia, and had 2019 sales of $125. Power Distribution, Inc. is reported within the Electrical Americas business segment.
Sale of Lighting business
On March 2, 2020, Eaton sold its Lighting business to Signify N.V. for a cash purchase price of $1.4 billion. As a result of the sale, the Company recognized a pre-tax gain of $221 in 2020. The Lighting business, which had sales of $1.6 billion in 2019 as part of the Electrical Americas business segment, served customers in commercial, industrial, residential, and municipal markets.
Pending sale of Hydraulics business
On January 21, 2020, Eaton entered into an agreement to sell its Hydraulics business to Danfoss A/S, a Danish industrial company, for $3.3 billion in cash. Eaton’s Hydraulics business is a global leader in hydraulics components, systems, and services for industrial and mobile equipment. The business had sales of $1.8 billion in 2020. The transaction is subject to customary closing conditions and regulatory approvals and is expected to close in the second quarter of 2021.
During the first quarter of 2020, the Company determined the Hydraulics business met the criteria to be classified as held for sale. Therefore, assets and liabilities of the business have been presented as held for sale in the Consolidated Balance Sheets as of December 31, 2020 and March 31, 2021. Assets and liabilities classified as held for sale are measured at the lower of carrying value or fair value less costs to sell. No write-down has been required as fair value of the Hydraulics business assets less the costs to sell exceed their respective carrying values. Depreciation and amortization expense is not recorded for the period in which Other long-lived assets are classified as held for sale.
The Company used the relative fair value method to allocate goodwill to the Hydraulics business. The fair value of the Hydraulics business was estimated based on a combination of the price paid to Eaton by Danfoss A/S and a discounted cash flow model. The model includes estimates of future cash flows, future growth rates, terminal value amounts, and the applicable weighted-average cost of capital used to discount those estimated cash flows. The weighted-average cost of capital is an estimate of the overall after-tax rate of return required by equity and debt market holders of a business enterprise. These analyses require the exercise of judgments, including judgments about appropriate discount rates, perpetual growth rates, revenue growth, and margin assumptions.
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The assets and liabilities classified as held for sale for the Hydraulics business on the March 31, 2021 and December 31, 2020 Consolidated Balance Sheets are as follows:
March 31, 2021December 31, 2020
Cash$7 $ 
Accounts receivable - net397 345 
Inventory378 369 
Prepaid expenses and other current assets9 18 
Net property, plant and equipment505 504 
Goodwill909 920 
Other intangible assets247 248 
Operating lease assets63 61 
Deferred income taxes5 6 
Other noncurrent assets17 16 
Assets held for sale - current$2,537 $2,487 
Accounts payable$276 $241 
Accrued compensation25 26 
Other current liabilities105 101 
Pension liabilities57 60 
Operating lease liabilities32 35 
Deferred income taxes4 3 
Other noncurrent liabilities2 2 
Liabilities held for sale - current$501 $468 
The Hydraulics business did not meet the criteria to be classified as discontinued operations as the sale does not represent a strategic shift that will have a major effect on the Company's operations.
Agreement to Acquire Cobham Mission Systems
On January 31, 2021, Eaton signed an agreement to acquire Cobham Mission Systems (CMS), a leading manufacturer of air-to-air refueling systems, environmental systems, and actuation primarily for defense markets. Under the terms of the agreement, Eaton will pay $2.83 billion. CMS had sales of over $700 in 2020. The transaction is subject to customary closing conditions and is expected to close the beginning of the fourth quarter of 2021. CMS will be reported within the Aerospace business segment.
Acquisition of Tripp Lite
On March 17, 2021, Eaton acquired Tripp Lite for $1.65 billion, net of cash received. Tripp Lite is a leading supplier of power quality products and connectivity solutions including single-phase uninterruptible power supply systems, rack power distribution units, surge protectors, and enclosures for data centers, industrial, medical, and communications markets in the Americas. Tripp Lite had sales of over $400 in 2020. Tripp Lite is reported within the Electrical Americas business segment.
The acquisition of Tripp Lite has been accounted for using the acquisition method of accounting which requires the assets acquired and liabilities assumed be recognized at their respective fair values on the acquisition date. The table below summarizes the preliminary estimated fair values of the assets acquired and liabilities assumed on the acquisition date. These preliminary estimates will continue to be revised during the measurement period as third-party valuations are received and finalized, further information becomes available and additional analyses are performed, and these differences could have a material impact on Eaton's preliminary purchase price allocation.
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March 17, 2021
Short-term investments$5 
Accounts receivable 94 
Inventory184 
Prepaid expenses and other current assets6 
Property, plant and equipment6 
Other intangible assets630 
Accounts payable(13)
Other current liabilities(32)
Other noncurrent liabilities(157)
Total identifiable net assets723 
Goodwill928 
Total consideration, net of cash received$1,651 
Goodwill is calculated as the excess of the consideration transferred over the net assets recognized and represents the anticipated synergies of acquiring Tripp Lite. Goodwill recognized as a result of the acquisition is not deductible for tax purposes. Other intangible assets of $630 are expected to include customer relationships, trademarks and technology. Given the timing of the acquisition, Eaton utilized a benchmarking approach based on similar acquisitions to determine the preliminary fair values for intangible assets. See Note 6 for additional information about goodwill.
Eaton's 2021 Condensed Consolidated Financial Statements include Tripp Lite’s results of operations, including sales of $26, from date the of acquisition through March 31, 2021.
Acquisition of Green Motion SA
On March 22, 2021, Eaton acquired Green Motion SA, a leading designer and manufacturer of electric vehicle charging hardware and related software based in Switzerland. Green Motion SA was acquired for $105, including $49 of cash paid at closing and $56 of estimated fair value of contingent future consideration based on 2023 and 2024 revenue performance. The fair value of contingent consideration liabilities is estimated by discounting contingent payments expected to be made, and may increase or decrease based on changes in revenue estimates and discount rates, with a maximum possible undiscounted value of $109. Green Motion SA is reported within the Electrical Global business segment.
Acquisition of a 50% stake in HuanYu High Tech
On March 29, 2021, Eaton acquired a 50 percent stake in HuanYu High Tech, a subsidiary of HuanYu Group that manufactures and markets low-voltage circuit breakers and contactors in China, and throughout the Asia-Pacific region. HuanYu High Tech had 2019 sales of $106 and has production operations in Wenzhou, China. Eaton accounts for this investment on the equity method of accounting and is reported within the Electrical Global business segment.

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Note 3.    REVENUE RECOGNITION
Sales are recognized when obligations under the terms of the contract are satisfied and control of promised goods or services have transferred to our customers. Sales are measured at the amount of consideration the Company expects to be paid in exchange for these products or services.
The Company’s six operating segments and the following tables disaggregate sales by lines of businesses, geographic destination, market channel or end market.
Three months ended March 31, 2021
Net salesProductsSystemsTotal
Electrical Americas$520 $1,102 $1,622 
Electrical Global713 540 1,253 
United StatesRest of World
Hydraulics$222 $339 561 
Original Equipment ManufacturersAftermarketIndustrial and Other
Aerospace$208 $146 $165 519 
Commercial Passenger and Light Duty
Vehicle$342 $312 654 
eMobility83 
Total$4,692 
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Three months ended March 31, 2020
Net salesProductsSystemsTotal
Electrical Americas$724 $1,064 $1,788 
Electrical Global657 487 1,144 
United StatesRest of World
Hydraulics$227 $280 507 
Original Equipment ManufacturersAftermarketIndustrial and Other
Aerospace$325 $220 $135 680 
Commercial Passenger and Light Duty
Vehicle$292 $306 598 
eMobility72 
Total$4,789 
The timing of revenue recognition, billings and cash collections results in billed accounts receivable, unbilled receivables (revenue recognized exceeds amount billed to the customer), and deferred revenue (advance payments and billings in excess of revenue recognized). Accounts receivables from customers were $2,708 and $2,539 at March 31, 2021 and December 31, 2020, respectively. Amounts are billed as work progresses in accordance with agreed-upon contractual terms, either at periodic intervals or upon achievement of contractual milestones. These assets and liabilities are reported on the Consolidated Balance Sheets on a contract-by-contract basis at the end of each reporting period. Unbilled receivables were $106 and $90 at March 31, 2021 and December 31, 2020, respectively, and are recorded in Prepaid expenses and other current assets. The increase in unbilled receivables reflects higher revenue recognized and not yet billed during the quarter.
Changes in the deferred revenue liabilities are as follows:
Deferred Revenue
Balance at January 1, 2021$257 
Customer deposits and billings276 
Revenue recognized in the period(262)
Translation and other(3)
Balance at March 31, 2021$268 
Deferred Revenue
Balance at January 1, 2020$234 
Customer deposits and billings245 
Revenue recognized in the period(240)
Translation(4)
Deferred revenue reclassified to held for sale(11)
Balance at March 31, 2020$224 
A significant portion of open orders placed with Eaton are by original equipment manufacturers or distributors. These open orders are not considered firm as they have been historically subject to releases by customers. In measuring backlog of unsatisfied or partially satisfied obligations, only the amount of orders to which customers are firmly committed are included. Using this criterion, total backlog at March 31, 2021 was approximately $6.4 billion. At March 31, 2021, Eaton expects to recognize approximately 88% of this backlog in the next twelve months and the rest thereafter.
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Note 4. CREDIT LOSSES FOR RECEIVABLES
Receivables are exposed to credit risk based on the customers’ ability to pay which is influenced by, among other factors, their financial liquidity position. Eaton’s receivables are generally short-term in nature with a majority outstanding less than 90 days.
Eaton performs ongoing credit evaluation of its customers and maintains sufficient allowances for potential credit losses. The Company evaluates the collectability of its receivables based on the length of time the receivable is past due, and any anticipated future write-offs based on historic experience adjusted for market conditions. The Company’s segments, supported by our global credit department, perform the credit evaluation and monitoring process to estimate and manage credit risk. The process includes an evaluation of credit losses for both the overall segment receivable and specific customer balances. The process also includes review of customer financial information and credit ratings, approval and monitoring of customer credit limits, and an assessment of market conditions. The Company may also require prepayment from customers to mitigate credit risk. Receivable balances are written off against an allowance for credit losses after a final determination of collectability has been made.
Accounts receivable are net of an allowance for credit losses of $52 and $48 at March 31, 2021 and December 31, 2020. The change in the allowance for credit losses includes expense and net write-offs, none of which are significant.

Note 5.    INVENTORY
Inventory is carried at lower of cost or net realizable value. The components of inventory follow:
March 31,
2021
December 31,
2020
Raw materials$824 $803 
Work-in-process530 498 
Finished goods1,045 808 
Total inventory$2,399 $2,109 

Note 6.    GOODWILL
Change in the carrying amount of goodwill by segment follows:
January 1,
2021
AdditionsTranslationMarch 31,
2021
Electrical Americas$6,456 $928 $(3)$7,381 
Electrical Global4,295 61 (101)4,255 
Aerospace1,777  (28)1,749 
Vehicle293  (2)291 
eMobility82  (1)81 
Total$12,903 $989 $(135)$13,757 
The 2021 additions to goodwill relate to the anticipated synergies of acquiring Tripp Lite and Green Motion SA. The allocations of the purchase price from these acquisitions are preliminary and will be completed during the measurement periods.
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Note 7. DEBT
On March 8, 2021, a subsidiary of Eaton issued Euro denominated notes (2021 Euro Notes) with a face value of €1,500 ($1,798), in accordance with Regulation S promulgated under the Securities Act of 1933, as amended. The 2021 Euro Notes are comprised of two tranches of €900 and €600, which mature in 2026 and 2030, respectively, with interest payable annually at a respective rate of 0.128% and 0.577%. The issuer received proceeds totaling €1,494 ($1,790) from the issuance, net of financing costs and discounts. The senior 2021 Euro Notes are fully and unconditionally guaranteed on an unsubordinated, unsecured basis by Eaton and certain of its direct and indirect subsidiaries. The 2021 Euro Notes contain customary optional redemption and par call provisions. The 2021 Euro Notes also contain a change of control provision which requires the Company to make an offer to purchase all or any part of the 2021 Euro Notes at a purchase price of 101% of the principal amount plus accrued and unpaid interest. The capitalized deferred financing fees are amortized in Interest expense-net over the respective terms of the 2021 Euro Notes. The 2021 Euro Notes are subject to customary non-financial covenants.

Note 8.    RETIREMENT BENEFITS PLANS
The components of retirement benefits expense (income) follow:
United States
pension benefit expense (income)
Non-United States
pension benefit expense (income)
Other postretirement
benefits expense (income)
Three months ended March 31
 202120202021202020212020
Service cost$10 $24 $19 $18 $ $ 
Interest cost17 26 10 11 2 2 
Expected return on plan assets(56)(57)(30)(27)  
Amortization10 25 19 15 (1)(3)
(19)18 18 17 1 (1)
Settlements, curtailments and special termination benefits14 17  3   
Total expense (income)$(5)$35 $18 $20 $1 $(1)
During 2020, the Company announced it was freezing its United States pension plans for its non-union employees. The freeze was effective January 1, 2021 for non-union U.S. employees whose retirement benefit was determined under a cash balance formula and is effective January 1, 2026 for non-union U.S. employees whose retirement benefit is determined under a final average pay formula.
The components of retirement benefits expense (income) other than service costs are included in Other (income) expense - net.

Note 9.    LEGAL CONTINGENCIES
Eaton is subject to a broad range of claims, administrative and legal proceedings such as lawsuits that relate to contractual allegations, tax audits, patent infringement, personal injuries, antitrust matters, and employment-related matters. Eaton is also subject to asbestos claims from historic products which may have contained asbestos. Insurance may cover some of the costs associated with these claims and proceedings. Although it is not possible to predict with certainty the outcome or cost of these matters, the Company believes they will not have a material adverse effect on the consolidated financial statements.
 
Note 10.     INCOME TAXES
The effective income tax rate for the first quarter of 2021 was expense of 14.7% compared to expense of 29.5% for the first quarter of 2020. The decrease in the effective tax rate in the first quarter of 2021 was primarily due to the tax impact on the gain from the sale of the Lighting business in 2020 described in Note 2.
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Note 11. EQUITY
On February 27, 2019, the Board of Directors adopted a share repurchase program for share repurchases up to $5,000 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 the three months ended March 31, 2021 and 2020, 0.5 million and 14.2 million ordinary shares, respectively, were repurchased under the 2019 Program in the open market at a total cost of $59 and $1,300, respectively.
The changes in Shareholders’ equity follow:
Ordinary sharesCapital in excess of par valueRetained earningsAccumulated other comprehensive lossShares held in trustTotal Eaton shareholders' equityNoncontrolling interestsTotal equity
(In millions)SharesDollars
Balance at January 1, 2021398.1 $4 $12,329 $6,794 $(4,195)$(2)$14,930 $43 $14,973 
Net income— — — 458 — — 458 1 459 
Other comprehensive loss, net of tax(30)(30)— (30)
Cash dividends paid and accrued— — — (309)— — (309)— (309)
Issuance of shares under equity-based compensation plans0.9 — 6 (1)— — 5 — 5 
Changes in noncontrolling interest of consolidated subsidiaries - net— — — — — — — (2)(2)
Repurchase of shares(0.5)— — (59)— — (59)— (59)
Balance at March 31, 2021398.5 $4 $12,335 $6,883 $(4,225)$(2)$14,995 $42 $15,037 
Ordinary sharesCapital in excess of par valueRetained earningsAccumulated other comprehensive lossShares held in trustTotal Eaton shareholders' equityNoncontrolling interestsTotal equity
(In millions)SharesDollars
Balance at January 1, 2020413.3 $4 $12,200 $8,170 $(4,290)$(2)$16,082 $51 $16,133 
Net income— — — 438 — — 438 — 438 
Other comprehensive loss, net of tax(676)(676)— (676)
Cash dividends paid and accrued— —