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EQUITY (Tables) | 3 Months Ended
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Mar. 31, 2023
Stockholders' Equity Note [Abstract] |
Schedule of Changes in Shareholders' Equity | The changes in Shareholders’ equity are as follows:
| Ordinary shares |  | Capital in excess of par value |  | Retained earnings |  | Accumulated other comprehensive loss |  | Shares held in trust |  | Total Eaton shareholders' equity |  | Noncontrolling interests |  | Total equity
(In millions) | Shares |  | Dollars |  |  |  |  |  |  |
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 |
| Ordinary shares |  | Capital in excess of par value |  | Retained earnings |  | Accumulated other comprehensive loss |  | Shares held in trust |  | Total Eaton shareholders' equity |  | Noncontrolling interests |  | Total equity
(In millions) | Shares |  | Dollars |  |  |  |  |  |  |
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 |
Schedule of Accumulated Other Comprehensive Loss | The changes in Accumulated other comprehensive loss are as follows:
(In millions) | Currency translation and related hedging instruments |  | Pensions and other postretirement benefits |  | Cash flow hedges |  | Total
Balance at January 1, 2023 | $ | (3,264) |  |  | $ | (810) |  |  | $ | 129 |  |  | $ | (3,946) |
Other comprehensive income (loss) before reclassifications | 121 |  |  | (11) |  |  | 26 |  |  | 136 |
Amounts reclassified from Accumulated other comprehensive loss (income) | (1) |  |  | 8 |  |  | (11) |  |  | (4) |
Net current-period Other comprehensive income (loss) | 119 |  |  | (2) |  |  | 15 |  |  | 132 |
Balance at March 31, 2023 | $ | (3,145) |  |  | $ | (813) |  |  | $ | 144 |  |  | $ | (3,814) |
Schedule of Reclassifications of Accumulated Other Comprehensive Loss | The reclassifications out of Accumulated other comprehensive loss are as follows:
(In millions) | Three months ended March 31, 2023 |  | Consolidated Statements of Income classification
Gains and (losses) on net investment hedges (amount excluded from effectiveness testing) |  |  |
Currency exchange contracts | $ | 1 |  |  | Interest expense - net
Tax expense | — |  |  |
Total, net of tax | 1 |  |  |
Amortization of defined benefits pensions and other postretirement benefits items |  |  |
Actuarial loss and prior service cost | (8) |  | 1 |
Tax benefit | — |  |  |
Total, net of tax | (8) |  |  |
Gains and (losses) on cash flow hedges |  |  |
Floating-to-fixed interest rate swaps | 3 |  |  | Interest expense - net
Currency exchange contracts | 11 |  |  | Net sales and Cost of products sold
Tax expense | (3) |  |  |
Total, net of tax | 11 |  |  |
Total reclassifications for the period | $ | 4 |  |  |
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.
Schedule of Net Income per Ordinary Share Attributable to Shareholders | A summary of the calculation of net income per share attributable to Eaton ordinary shareholders is as follows:
|  |  | Three months ended March 31
(In millions except for per share data) |  |  |  |  | 2023 |  | 2022
Net income attributable to Eaton ordinary shareholders |  |  |  |  | $ | 638 |  |  | $ | 532 |
Weighted-average number of ordinary shares outstanding - diluted |  |  |  |  | 400.5 |  |  | 401.8 |
Less dilutive effect of equity-based compensation |  |  |  |  | 2.0 |  |  | 2.6 |
Weighted-average number of ordinary shares outstanding - basic |  |  |  |  | 398.5 |  |  | 399.2 |
Net income per share attributable to Eaton ordinary shareholders |  |  |  |  |  |  |
Diluted |  |  |  |  | $ | 1.59 |  |  | $ | 1.33 |
Basic |  |  |  |  | 1.60 |  |  | 1.33 |

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