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RESTRUCTURING CHARGES
 12 Months Ended
Dec. 31, 2025
Restructuring and Related Activities [Abstract]  
RESTRUCTURING CHARGES RESTRUCTURING CHARGES
In the second quarter of 2020, Eaton initiated a multi-year restructuring program to reduce its cost structure and gain efficiencies in its business segments and at corporate in order to initially respond to declining market conditions brought on by the COVID-19 pandemic. Since the inception of the program, the Company incurred expenses of $199 million for workforce reductions and $184 million for plant closing and other costs, resulting in total charges of $382 million through December 31, 2023. This multi-year restructuring program was substantially complete at the end of 2023, with final payments primarily made in 2024.
During the first quarter of 2024, Eaton implemented a multi-year restructuring program to accelerate opportunities to optimize its operations and global support structure. These actions will better align the Company's functions to support anticipated growth and drive greater effectiveness throughout the Company. Since the inception of the program, the Company has incurred charges of $335 million. This restructuring program is expected to be completed in 2026 and is expected to incur additional expenses related to workforce reductions of $102 million and plant closing and other costs of $38 million, resulting in total estimated charges of $475 million for the entire program.
A summary of restructuring program charges is as follows:
(In millions except for per share data)202520242023
Workforce reductions$81 $120 $19 
Plant closing and other52 83 38 
Total before income taxes133 202 57 
Income tax benefit29 43 11 
Total after income taxes$103 $160 $46 
Per ordinary share - diluted$0.26 $0.40 $0.11 
Restructuring program charges related to the following segments:
(In millions)202520242023
Electrical Americas$14 $12 $5 
Electrical Global63 88 26 
Aerospace10 9 5 
Vehicle1
13 40 6 
eMobility18 25 7 
Corporate14 29 8 
Total$133 $202 $57 
A summary of liabilities related to workforce reductions, plant closing, and other associated costs is as follows:
(In millions)Workforce reductionsPlant closing and otherTotal
Balance at January 1, 2024
$35 $6 $41 
Liability recognized, net120 83 202 
Payments, utilization and translation(59)(81)(141)
Balance at December 31, 2024
96 7 103 
Liability recognized, net1
81 52 133 
Payments, utilization and translation(67)(51)(118)
Balance at December 31, 2025
$109 $8 $118 
1The restructuring program liability was adjusted by $12 million in the fourth quarter of 2025 primarily related to true-ups for completed workforce reductions in the Vehicle segment.
These restructuring program charges were included in Cost of products sold, Selling and administrative expense, Research and development expense, or Other expense (income) - net, as appropriate. In Business Segment Information, these restructuring program charges are treated as Corporate items. See Note 18 for additional information about business segments.