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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 September 30, 2023
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 399.3 million Ordinary Shares outstanding as of September 30, 2023.










































PART I — FINANCIAL INFORMATION

ITEM 1.FINANCIAL STATEMENTS.

EATON CORPORATION plc
CONSOLIDATED STATEMENTS OF INCOME
Three months ended
September 30		Nine months ended
September 30
(In millions except for per share data)2023202220232022
Net sales$5,880 $5,313 $17,229 $15,368 
Cost of products sold3,684 3,545 11,030 10,319 
Selling and administrative expense949 813 2,839 2,431 
Research and development expense187 165 553 498 
Interest expense - net33 37 124 100 
Gain on sale of business— — — 24 
Other expense (income) - net(52)34 (56)(16)
Income before income taxes1,079 720 2,739 2,060 
Income tax expense187 112 463 316 
Net income892 608 2,277 1,743 
Less net income for noncontrolling interests(1)(1)(4)(2)
Net income attributable to Eaton ordinary shareholders$891 $607 $2,273 $1,741 
Net income per share attributable to Eaton ordinary shareholders  
Diluted$2.22 $1.52 $5.67 $4.34 
Basic2.23 1.52 5.70 4.36 
Weighted-average number of ordinary shares outstanding  
Diluted401.6 400.3 400.9 400.9 
Basic399.4 398.4 399.0 398.9 
Cash dividends declared per ordinary share$0.86 $0.81 $2.58 $2.43 

The accompanying notes are an integral part of these condensed consolidated financial statements.
2
EATON CORPORATION plc
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Three months ended
September 30		Nine months ended
September 30
(In millions)2023202220232022
Net income$892 $608 $2,277 $1,743 
Less net income for noncontrolling interests(1)(1)(4)(2)
Net income attributable to Eaton ordinary shareholders891 607 2,273 1,741 
Other comprehensive income (loss), net of tax
Currency translation and related hedging instruments(165)(483)11 (1,015)
Pensions and other postretirement benefits18 (4)14 32 
Cash flow hedges(21)(36)(7)133 
Other comprehensive income (loss) attributable to Eaton
   ordinary shareholders		(167)(522)18 (850)
Total comprehensive income attributable to Eaton
  ordinary shareholders		$724 $85 $2,291 $891 

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























3
EATON CORPORATION plc
CONSOLIDATED BALANCE SHEETS
(In millions)September 30,
2023		December 31,
2022
Assets  
Current assets  
Cash$348 $294 
Short-term investments1,558 261 
Accounts receivable - net4,460 4,076 
Inventory3,713 3,430 
Prepaid expenses and other current assets904 685 
Total current assets10,983 8,746 
Property, plant and equipment
Land and buildings2,174 2,129 
Machinery and equipment6,228 5,885 
Gross property, plant and equipment8,403 8,013 
Accumulated depreciation(5,062)(4,867)
Net property, plant and equipment3,341 3,146 
Other noncurrent assets
Goodwill14,781 14,796 
Other intangible assets5,158 5,485 
Operating lease assets600 570 
Deferred income taxes349 330 
Other assets2,076 1,940 
Total assets$37,289 $35,014 
Liabilities and shareholders’ equity  
Current liabilities  
Short-term debt$24 $324 
Current portion of long-term debt975 10 
Accounts payable3,255 3,072 
Accrued compensation592 467 
Other current liabilities2,716 2,488 
Total current liabilities7,563 6,360 
Noncurrent liabilities  
Long-term debt8,150 8,321 
Pension liabilities611 649 
Other postretirement benefits liabilities170 177 
Operating lease liabilities486 459 
Deferred income taxes460 530 
Other noncurrent liabilities1,429 1,444 
Total noncurrent liabilities11,306 11,580 
Shareholders’ equity  
Ordinary shares (399.3 million outstanding in 2023 and 397.8 million in 2022)
4 4 
Capital in excess of par value12,604 12,512 
Retained earnings9,703 8,468 
Accumulated other comprehensive loss(3,927)(3,946)
Shares held in trust(1)(1)
Total Eaton shareholders’ equity18,383 17,038 
Noncontrolling interests36 38 
Total equity18,420 17,075 
Total liabilities and equity$37,289 $35,014 
The accompanying notes are an integral part of these condensed consolidated financial statements.

4
EATON CORPORATION plc
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
Nine months ended
September 30
(In millions)20232022
Operating activities  
Net income$2,277 $1,743 
Adjustments to reconcile to net cash provided by operating activities
Depreciation and amortization695 716 
Deferred income taxes(69)(74)
Pension and other postretirement benefits expense13 39 
Contributions to pension plans(83)(80)
Contributions to other postretirement benefits plans(15)(18)
Gain on sale of business— (24)
Changes in working capital(436)(968)
Other - net(56)12 
Net cash provided by operating activities2,326 1,347 
Investing activities  
Capital expenditures for property, plant and equipment(514)(389)
Proceeds from sales of property, plant and equipment54 166 
Cash paid for acquisition of a business, net of cash acquired— (612)
Proceeds from (payments for) sale of business, net of cash sold(2)31 
Investments in associate companies(68)(42)
Purchases of short-term investments - net(1,304)(45)
Proceeds from (payments for) settlement of currency exchange contracts not designated as hedges - net61 (34)
Other - net(9)(58)
Net cash used in investing activities(1,782)(983)
Financing activities  
Proceeds from borrowings818 1,995 
Payments on borrowings(11)(2,008)
Short-term debt, net(295)896 
Cash dividends paid(1,035)(977)
Exercise of employee stock options73 16 
Repurchase of shares— (286)
Employee taxes paid from shares withheld (49)(60)
Other - net(9)(22)
Net cash used in financing activities(507)(445)
Effect of currency on cash18 15 
Total increase (decrease) in cash54 (67)
Cash at the beginning of the period294 297 
Cash at the end of the period$348 $231 

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

5
EATON CORPORATION plc
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
Amounts are in millions unless indicated otherwise (per share data assume dilution). Columns and rows may not add and the sum of components may not equal total amounts reported due to rounding.
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 2022 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.
Adoption of New Accounting Standard
Eaton adopted Accounting Standards Update 2022-04, Liabilities - Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations, in the first quarter of 2023. The standard requires disclosure of certain information about the Company's supply chain finance program, including key terms and a rollforward of confirmed amounts payable. The adoption of the standard did not have a material impact on the condensed consolidated financial statements.
Note 2.    ACQUISITIONS AND DIVESTITURE OF BUSINESSES
Sale of Hydraulics business
On August 2, 2021, Eaton completed the sale of the Hydraulics business to Danfoss A/S and recognized a pre-tax gain of $617 million in 2021. The Company finalized negotiations of post-closing adjustments with Danfoss A/S and recognized an additional pre-tax gain of $24 million in the first quarter of 2022 and received cash of $22 million in the second quarter of 2022 from Danfoss A/S to fully settle all post-closing adjustments.
Acquisition of Royal Power Solutions
On January 5, 2022, Eaton acquired Royal Power Solutions for $610 million, net of cash received. Royal Power Solutions is a U.S. based manufacturer of high-precision electrical connectivity components used in electric vehicle, energy management, industrial and mobility markets. Royal Power Solutions is reported within the eMobility business segment.
Eaton's 2022 Condensed Consolidated Financial Statements include Royal Power Solutions' results of operations, including segment operating profit of $17 million on sales of $120 million, from the date of acquisition through September 30, 2022.
Russia
During the second quarter of 2022, in light of the ongoing war with Ukraine, the Company decided to exit its business operations in Russia and recorded charges of $29 million presented in Other expense (income) - net on the Consolidated Statements of Income. The charges consisted primarily of write-downs of accounts receivable, inventory and other assets, and accruals for severance.
Acquisition of a 50% stake in Jiangsu Huineng Electric Co., Ltd’s circuit breaker business
On July 1, 2022, Eaton acquired a 50 percent stake in Jiangsu Huineng Electric Co., Ltd’s circuit breaker business, which manufactures and markets low-voltage circuit breakers in China. Eaton accounts for this investment on the equity method of accounting and is reported within the Electrical Global business segment.
Acquisition of a 49% stake in Jiangsu Ryan Electrical Co. Ltd.
On April 23, 2023, Eaton acquired a 49 percent stake in Jiangsu Ryan Electrical Co. Ltd., a manufacturer of power distribution and sub-transmission transformers in China. Eaton accounts for this investment on the equity method of accounting and is reported within the Electrical Global business segment.

6
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. Control is transferred when the customer has the ability to direct the use of and obtain benefits from the goods or services. Sales are measured at the amount of consideration the Company expects to be paid in exchange for these products or services.
The following table provides disaggregated sales by lines of businesses, geographic destination, market channel or end market, as applicable, for the Company's operating segments:
Three months ended
September 30		Nine months ended
September 30
(In millions)2023202220232022
Electrical Americas
Products$748 $737 $2,221 $2,034 
Systems1,846 1,442 5,205 4,167 
Total$2,594 $2,179 $7,426 $6,201 
Electrical Global
Products$848 $855 $2,620 $2,609 
Systems655 631 1,952 1,809 
Total$1,503 $1,486 $4,572 $4,418 
Aerospace
Original Equipment Manufacturers$342 $303 $980 $881 
Aftermarket302 256 863 719 
Industrial and Other223 209 674 628 
Total$867 $768 $2,517 $2,227 
Vehicle
Commercial$452 $460 $1,359 $1,307 
Passenger and Light Duty301 284 884 816 
Total$753 $744 $2,242 $2,123 
eMobility$163 $137 $471 $399 
Total net sales$5,880 $5,313 $17,229 $15,368 

7
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 receivable from customers were $3,983 million and $3,581 million at September 30, 2023 and December 31, 2022, 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 $313 million and $233 million at September 30, 2023 and December 31, 2022, respectively, and are recorded in Prepaid expenses and other current assets. The increase in unbilled receivables reflects higher revenue recognized from increased business activity in 2023.
Changes in the deferred revenue liabilities are as follows:
(In millions)Deferred Revenue
Balance at January 1, 2023
$508 
Customer deposits and billings1,684 
Revenue recognized in the period(1,563)
Translation1 
Balance at September 30, 2023
$630 
(In millions)Deferred Revenue
Balance at January 1, 2022
$422 
Customer deposits and billings1,135 
Revenue recognized in the period(1,086)
Translation and other(42)
Balance at September 30, 2022
$429 
Deferred revenue liabilities of $610 million and $489 million as of September 30, 2023 and December 31, 2022, respectively, were included in Other current liabilities with the remaining balance presented in Other noncurrent liabilities.
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 September 30, 2023 was approximately $12.9 billion. At September 30, 2023, approximately 81% of this backlog is targeted for delivery to customers in the next twelve months and the rest thereafter.

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-off 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 $43 million and $31 million at September 30, 2023 and December 31, 2022, respectively. The change in the allowance for credit losses includes expense and net write-offs, none of which are significant.


8
Note 5.    INVENTORY
Inventory is carried at lower of cost or net realizable value. The components of inventory are as follows:
(In millions)September 30,
2023		December 31,
2022
Raw materials$1,471 $1,275 
Work-in-process901 781 
Finished goods1,341 1,375 
Total inventory$3,713 $3,430 

Note 6.    GOODWILL
Changes in the carrying amount of goodwill by segment are as follows:
(In millions)January 1, 2023TranslationSeptember 30, 2023
Electrical Americas$7,402 $2 $7,404 
Electrical Global3,929 (24)3,905 
Aerospace2,844 8 2,851 
Vehicle287 — 287 
eMobility334 — 334 
Total$14,796 $(15)$14,781 

Note 7.    SUPPLY CHAIN FINANCE PROGRAM
The Company negotiates payment terms directly with its suppliers for the purchase of goods and services. In addition, a third-party financial institution offers a voluntary supply chain finance (SCF) program that enables certain of the Company’s suppliers, at the supplier’s sole discretion, to sell receivables due from the Company to the financial institution on terms directly negotiated with the financial institution. If a supplier elects to participate in the SCF program, the supplier decides which invoices are sold to the financial institution and the Company has no economic interest in a supplier’s decision to sell an invoice. Payments by the Company to participating suppliers are paid to the financial institution on the invoice due date, regardless of whether an individual invoice is sold by the supplier to the financial institution. The amounts due to the financial institution for suppliers that participate in the SCF program are included in Accounts payable on the Consolidated Balance Sheets, and the associated payments are included in operating activities on the Condensed Consolidated Statements of Cash Flows.
The changes in SCF obligations are as follows:
(In millions)SCF Obligations
Balance at January 1, 2023
$208 
Invoices confirmed during the period988 
Invoices paid during the period(834)
Translation10 
Balance at September 30, 2023
$372 

9
Note 8.    DEBT
On October 2, 2023, the Company replaced its existing $500 million 364-day revolving credit facility with a new $500 million 364-day revolving credit facility that will expire on September 30, 2024. The Company also has a $2,500 million five-year revolving credit facility that will expire on October 1, 2027. The revolving credit facilities totaling $3,000 million are used to support commercial paper borrowings and are fully and unconditionally guaranteed by Eaton and certain of its direct and indirect subsidiaries on an unsubordinated, unsecured basis. There were no borrowings outstanding under Eaton’s revolving credit facilities at September 30, 2023. The Company maintains access to the commercial paper markets through its $3,000 million commercial paper program, of which none was outstanding on September 30, 2023.
On May 18, 2023, Eaton issued senior notes (2023 Notes) with a face amount of $500 million. The 2023 Notes mature in 2028 with interest payable semi-annually at a rate of 4.35% per annum. The issuer received proceeds totaling $497 million from the issuance, net of financing costs. The 2023 Notes are fully and unconditionally guaranteed on an unsubordinated, unsecured basis by Eaton and certain of its direct and indirect subsidiaries. The 2023 Notes contain customary optional redemption and par call provisions. The 2023 Notes also contain a provision which upon a change of control requires the Company to make an offer to purchase all or any part of the 2023 Notes at a purchase price of 101% of the principal amount plus accrued and unpaid interest. The 2023 Notes are subject to customary non-financial covenants.
On March 3, 2023, a subsidiary of Eaton issued Euro denominated notes (2023 Euro Notes) in a private issuance with a face value of €300 million ($318 million). The floating rate notes are due June 3, 2024 with interest payable quarterly based on the three-month Euro Interbank Offered Rate plus 25 basis points. The 2023 Euro Notes are fully and unconditionally guaranteed on an unsubordinated, unsecured basis by Eaton. The 2023 Euro Notes contain a change of control provision which requires the Company to make an offer to purchase all or any part of the 2023 Euro Notes at a purchase price of 100.5% of the principal amount plus accrued and unpaid interest. The 2023 Euro Notes are subject to customary non-financial covenants.
10
Note 9.    RETIREMENT BENEFITS PLANS
The components of retirement benefits expense (income) are as follows:
United States
pension benefit expense (income)		Non-United States
pension benefit expense (income)		Other postretirement
benefits expense (income)
Three months ended September 30
(In millions)202320222023202220232022
Service cost$4 $6 $11 $15 $— $— 
Interest cost35 32 22 12 3 2 
Expected return on plan assets(48)(50)(31)(28)— — 
Amortization1 2 1 11 (4)(1)
(8)(10)4 9 (1)— 
Settlements9 18 1 — — — 
Total expense (income)$1 $8 $5 $10 $(1)$— 
United States
pension benefit expense (income)		Non-United States
pension benefit expense (income)		Other postretirement
benefits expense (income)
Nine months ended September 30
(In millions)202320222023202220232022
Service cost$14 $22 $32 $45 $— $1 
Interest cost106 80 64 36 8 5 
Expected return on plan assets(146)(155)(91)(88)— — 
Amortization3 14 5 35 (13)(5)
(23)(39)11 27 (5)— 
Settlements28 49 2 1 — — 
Total expense (income)$5 $10 $13 $29 $(5)$— 
The components of retirement benefits expense (income) other than service costs are included in Other expense (income) - net.
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.
During the third quarter and first nine months of 2023, the Company recognized settlement losses from lump-sum distributions of $10 million and $30 million, respectively. During the third quarter and first nine months of 2022, the Company recognized settlement losses from lump-sum distributions of $18 million and $50 million, respectively. During the third quarter and first nine months of 2022, the Company remeasured certain pension plans as a result of lump-sum distributions exceeding or expected to exceed the sum of service and interest costs for the year. These remeasurements resulted in a decrease of $88 million and $178 million in funded status and corresponding increase in Accumulated other comprehensive loss in the third quarter and first nine months of 2022, respectively.

Note 10.    LEGAL CONTINGENCIES
Eaton is subject to a broad range of claims, administrative and legal proceedings such as lawsuits that relate to contractual allegations and indemnity claims, tax audits, patent infringement, personal injuries, antitrust matters, and employment-related matters. Eaton is also subject to legal 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 Condensed Consolidated Financial Statements.
11
Note 11.    INCOME TAXES
The effective income tax rate for the third quarter of 2023 was expense of 17.3% compared to expense of 15.5% for the third quarter of 2022. The effective income tax rate for the first nine months of 2023 was expense of 16.9% compared to expense of 15.4% for the first nine months of 2022. The increase in the effective tax rate in the third quarter and first nine months of 2023 was primarily due to greater levels of income in higher tax jurisdictions.
Note 12.    EQUITY
The changes in Shareholders’ equity are as follows:
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, 2023
397.8 $4 $12,512 $8,468 $(3,946)$(1)$17,038 $38 $17,075 
Net income— — — 638 — — 638 1 639 
Other comprehensive income, net of tax   132  132  132 
Cash dividends paid and accrued— — — (348)— — (348)(4)(352)
Issuance of shares under equity-based
   compensation plans		0.7 — (11)(1)— 1 (11)— (11)
Changes in noncontrolling interest of
   consolidated subsidiaries - net		— — — — — — — 1 1 
Balance at March 31, 2023
398.6 $4 $12,502 $8,757 $(3,814)$— $17,449 $36 $17,485 
Net income— — — 744 — — 744 1 745 
Other comprehensive income, net of tax    53  53  53 
Cash dividends paid— — — (344)— — (344)— (344)
Issuance of shares under equity-based
   compensation plans		0.4 — 52 (1)— (1)51 — 51 
Changes in noncontrolling interest of
   consolidated subsidiaries - net		— — — — — — — (1)(1)
Balance at June 30, 2023
399.0 $4 $12,554 $9,156 $(3,760)$(1)$17,953 $36 $17,988 
Net income— — — 891 — — 891 1 892 
Other comprehensive loss, net of tax— — — — (167)— (167)— (167)
Cash dividends paid— — — (343)— — (343)— (343)
Issuance of shares under equity-based
   compensation plans		0.4 — 51 (1)— — 50 — 50 
Changes in noncontrolling interest of
   consolidated subsidiaries - net		— — — — — — — (1)(1)
Balance at September 30, 2023
399.3 $4 $12,604 $9,703 $(3,927)$(1)$18,383 $36 $18,420 
12
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, 2022
398.8 $4 $12,449 $7,594 $(3,633)$(1)$16,413 $38 $16,451 
Net income— — — 532 — — 532 1 533 
Other comprehensive income, net of tax   116  116  116 
Cash dividends paid and accrued— — — (331)— — (331)(2)(333)
Issuance of shares under equity-based
   compensation plans		0.8 — (22)(2)— — (24)— (24)
Changes in noncontrolling interest of
   consolidated subsidiaries - net		— — — — — — — (1)(1)
Repurchase of shares(0.6)— — (86)— — (86)— (86)
Balance at March 31, 2022
399.0 $4 $12,427 $7,707 $(3,517)$(1)$16,620 $36 $16,656 
Net income— — — 601 — — 601 — 601 
Other comprehensive loss, net of tax    (444) (444) (444)
Cash dividends paid— — — (323)— — (323)— (323)
Issuance of shares under equity-based
   compensation plans		— — 26 1 — — 27 — 27 
Changes in noncontrolling interest of
   consolidated subsidiaries - net		— — (1)— — — (1)— (1)
Repurchase of shares(0.7)— — (100)— — (100)— (100)
Balance at June 30, 2022
398.3 $4 $12,452 $7,886 $(3,961)$(1)$16,380 $36 $16,416 
Net income— — — 607 — — 607 1 608 
Other comprehensive loss, net of tax— — — — (522)— (522)— (522)
Cash dividends paid— — — (323)— — (323)— (323)
Issuance of shares under equity-based
   compensation plans		0.1 — 26 — — — 26 — 26 
Changes in noncontrolling interest of
   consolidated subsidiaries - net		— — — — — — — (2)(2)
Repurchase of shares(0.7)— — (100)— — (100)— (100)
Balance at September 30, 2022
397.7 $4 $12,478 $8,070 $(4,483)$(1)$16,068 $35 $16,103 
On February 27, 2019, the Board of Directors adopted a share repurchase program for share repurchases up to $5.0 billion of ordinary shares (2019 Program). On February 23, 2022, the Board renewed the 2019 Program by providing authority for up to $5.0 billion in repurchases to be made during the three-year period commencing on that date (2022 Program). Under the 2022 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 and nine months ended September 30, 2023, no ordinary shares were repurchased. During the three and nine months ended September 30, 2022, 0.7 million and 2.0 million ordinary shares, respectively, were repurchased under the 2022 program in the open market at a total cost of $100 million and $286 million, respectively.
The changes in Accumulated other comprehensive loss are as follows:
(In millions)Currency translation and related hedging instrumentsPensions and other postretirement benefitsCash flow
hedges		Total
Balance at January 1, 2023$(3,264)$(810)$129 $(3,946)
Other comprehensive income (loss) before
    reclassifications		21 (8)37 50 
Amounts reclassified from Accumulated other
   comprehensive loss (income)		(10)21 (44)(32)
Net current-period Other comprehensive
   income (loss)		11 14 (7)18 
Balance at September 30, 2023$(3,253)$(796)$122 $(3,927)
13
The reclassifications out of Accumulated other comprehensive loss are as follows:
(In millions)Nine months ended September 30, 2023Consolidated Statements
of Income classification
Gains and (losses) on net investment hedges (amount excluded
  from effectiveness testing)
Currency exchange contracts$10 Interest expense - net
Tax expense— 
Total, net of tax10 
Amortization of defined benefits pensions and other
   postretirement benefits items
Actuarial loss and prior service cost(25)1
Tax benefit4 
Total, net of tax(21)
Gains and (losses) on cash flow hedges
Floating-to-fixed interest rate swaps9 Interest expense - net
Currency exchange contracts45 Net sales and Cost of products sold
Commodity contracts1 Cost of products sold
Tax expense(12)
Total, net of tax44 
Total reclassifications for the period$32 
1 These components of Accumulated other comprehensive loss are included in the computation of net periodic benefit cost. See Note 9 for additional information about pension and other postretirement benefits items.

Net Income Per Share Attributable to Eaton Ordinary Shareholders
A summary of the calculation of net income per share attributable to Eaton ordinary shareholders is as follows:
Three months ended
September 30		Nine months ended
September 30
(In millions except for per share data)2023202220232022
Net income attributable to Eaton ordinary shareholders$891 $607 $2,273 $1,741 
Weighted-average number of ordinary shares outstanding - diluted401.6 400.3 400.9 400.9 
Less dilutive effect of equity-based compensation2.2 1.9 1.9 2.0 
Weighted-average number of ordinary shares outstanding - basic399.4 398.4 399.0 398.9 
Net income per share attributable to Eaton ordinary shareholders  
Diluted$2.22 $1.52 $5.67 $4.34 
Basic2.23 1.52 5.70 4.36 
For the third quarter of 2023, all stock options were included in the calculation of diluted net income per share attributable to Eaton ordinary shareholders because they were all dilutive. For the first nine months of 2023, 0.1 million stock options were