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EQUITY | 3 Months Ended
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Mar. 31, 2023
Stockholders' Equity Note [Abstract] |
EQUITY | 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 |
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 months ended March 31, 2023, no ordinary shares were repurchased. During the three months ended March 31, 2022, 0.6 million ordinary shares were repurchased under the 2022 program in the open market at a total cost of $86 million. 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) |
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. 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 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 |
For the first quarter of 2023 and 2022, all stock options were excluded from the calculation of diluted net income per share attributable to Eaton ordinary shareholders because the exercise price of the options exceeded the average market price of the ordinary shares during the period and their effect, accordingly, would have been antidilutive.

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