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EATON CORPORATION plc
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(Exact name of registrant as specified in its charter)
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Ireland
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98-1059235
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(State or other jurisdiction of incorporation or organization)
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(IRS Employer Identification Number)
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Eaton House,
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30 Pembroke Road,
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Dublin 4,
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Ireland
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D04 Y0C2
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(Address of principal executive offices)
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(Zip Code)
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Large Accelerated Filer
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☑
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Accelerated filer
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☐
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Non-accelerated filer
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☐
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Smaller reporting company
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☐
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Emerging growth company
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☐
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(Do not check if a smaller reporting company)
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TABLE OF CONTENTS
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ITEM 1.
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FINANCIAL STATEMENTS.
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|
Three months ended
June 30 |
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Six months ended
June 30 |
||||||||||||
(In millions except for per share data)
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2020
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2019
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2020
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2019
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||||||||
Net sales
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$
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3,856
|
|
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$
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5,533
|
|
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$
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8,645
|
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$
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10,838
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||||||||
Cost of products sold
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2,877
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3,697
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6,179
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7,270
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||||
Selling and administrative expense
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691
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907
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1,556
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1,824
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||||
Research and development expense
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126
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151
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279
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307
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Interest expense - net
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38
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50
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72
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110
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Gain on sale of business
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—
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—
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221
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—
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Other expense (income) - net
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77
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(10
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)
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112
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(14
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)
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Income before income taxes
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47
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738
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668
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1,341
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Income tax expense (benefit)
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(7
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)
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|
102
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|
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176
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|
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183
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Net income
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54
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|
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636
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|
|
492
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|
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1,158
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Less net income for noncontrolling interests
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(3
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)
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—
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(3
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)
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—
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||||
Net income attributable to Eaton ordinary shareholders
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$
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51
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$
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636
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$
|
489
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|
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$
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1,158
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||||||||
Net income per share attributable to Eaton ordinary shareholders
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|
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Diluted
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$
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0.13
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$
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1.50
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$
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1.20
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$
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2.73
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Basic
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0.13
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|
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1.51
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1.21
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2.74
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Weighted-average number of ordinary shares outstanding
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||||||||
Diluted
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401.3
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423.1
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406.2
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424.5
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Basic
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400.4
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421.6
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404.8
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422.8
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Cash dividends declared per ordinary share
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$
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0.73
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$
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0.71
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$
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1.46
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$
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1.42
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Three months ended
June 30 |
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Six months ended
June 30 |
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(In millions)
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2020
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2019
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2020
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2019
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||||||||
Net income
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$
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54
|
|
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$
|
636
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$
|
492
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|
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$
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1,158
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Less net income for noncontrolling interests
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(3
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)
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—
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(3
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)
|
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—
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|
||||
Net income attributable to Eaton ordinary shareholders
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51
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636
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|
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489
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1,158
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Other comprehensive income (loss), net of tax
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Currency translation and related hedging instruments
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116
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(36
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)
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(493
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)
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17
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Pensions and other postretirement benefits
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26
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32
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|
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112
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53
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Cash flow hedges
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15
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(26
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)
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(138
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)
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(33
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)
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Other comprehensive income (loss) attributable to Eaton
ordinary shareholders
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157
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|
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(30
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)
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(519
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)
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37
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||||
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Total comprehensive income (loss) attributable to Eaton
ordinary shareholders
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$
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208
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$
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606
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$
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(30
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)
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$
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1,195
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(In millions)
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June 30,
2020 |
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December 31,
2019 |
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Assets
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Current assets
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Cash
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$
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292
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$
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370
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Short-term investments
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204
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221
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Accounts receivable - net
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2,647
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3,437
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Inventory
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2,138
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2,805
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Assets held for sale
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2,405
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1,377
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Prepaid expenses and other current assets
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527
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518
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Total current assets
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8,213
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8,728
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Property, plant and equipment
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Land and buildings
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2,112
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2,440
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Machinery and equipment
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5,211
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6,266
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Gross property, plant and equipment
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7,323
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8,706
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Accumulated depreciation
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(4,419
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)
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(5,210
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)
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Net property, plant and equipment
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2,904
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3,496
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Other noncurrent assets
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Goodwill
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12,497
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13,456
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Other intangible assets
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4,241
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4,638
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Operating lease assets
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419
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436
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Deferred income taxes
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356
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372
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Other assets
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1,718
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1,679
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Total assets
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$
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30,348
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$
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32,805
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||||
Liabilities and shareholders’ equity
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||||
Current liabilities
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|
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||||
Short-term debt
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$
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139
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$
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255
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Current portion of long-term debt
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1,223
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|
|
248
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|
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Accounts payable
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1,620
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|
|
2,114
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|
||
Accrued compensation
|
254
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|
|
449
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Liabilities held for sale
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432
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|
|
325
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Other current liabilities
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1,821
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1,741
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Total current liabilities
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5,489
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5,132
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Noncurrent liabilities
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|
||||
Long-term debt
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6,906
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7,819
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Pension liabilities
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1,324
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1,462
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Other postretirement benefits liabilities
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322
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|
328
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Operating lease liabilities
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320
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|
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331
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|
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Deferred income taxes
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310
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|
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396
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|
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Other noncurrent liabilities
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1,442
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1,204
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Total noncurrent liabilities
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10,624
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11,540
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Shareholders’ equity
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|
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|
||||
Ordinary shares (400.1 million outstanding in 2020 and 413.3 million in 2019)
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4
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4
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Capital in excess of par value
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12,228
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12,200
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Retained earnings
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6,767
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8,170
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Accumulated other comprehensive loss
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(4,809
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)
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(4,290
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)
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Shares held in trust
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(2
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)
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(2
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)
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Total Eaton shareholders’ equity
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14,188
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|
|
16,082
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Noncontrolling interests
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47
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|
|
51
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|
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Total equity
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14,235
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|
|
16,133
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||
Total liabilities and equity
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$
|
30,348
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$
|
32,805
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|
|
Six months ended
June 30 |
||||||
(In millions)
|
2020
|
|
2019
|
||||
Operating activities
|
|
|
|
||||
Net income
|
$
|
492
|
|
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$
|
1,158
|
|
Adjustments to reconcile to net cash provided by operating activities
|
|
|
|
||||
Depreciation and amortization
|
397
|
|
|
442
|
|
||
Deferred income taxes
|
32
|
|
|
7
|
|
||
Pension and other postretirement benefits expense
|
109
|
|
|
75
|
|
||
Contributions to pension plans
|
(65
|
)
|
|
(62
|
)
|
||
Contributions to other postretirement benefits plans
|
(9
|
)
|
|
(6
|
)
|
||
Gain on sale of business
|
(91
|
)
|
|
—
|
|
||
Changes in working capital
|
95
|
|
|
(211
|
)
|
||
Other - net
|
120
|
|
|
28
|
|
||
Net cash provided by operating activities
|
1,080
|
|
|
1,431
|
|
||
|
|
|
|
||||
Investing activities
|
|
|
|
|
|||
Capital expenditures for property, plant and equipment
|
(202
|
)
|
|
(298
|
)
|
||
Proceeds from sale of business
|
1,408
|
|
|
—
|
|
||
Cash paid for acquisitions of businesses, net of cash acquired
|
(195
|
)
|
|
(243
|
)
|
||
Sales (purchases) of short-term investments - net
|
4
|
|
|
(221
|
)
|
||
Proceeds (payments) for settlement of currency exchange contracts not designated as hedges - net
|
(82
|
)
|
|
50
|
|
||
Other - net
|
(33
|
)
|
|
2
|
|
||
Net cash provided by (used in) investing activities
|
900
|
|
|
(710
|
)
|
||
|
|
|
|
||||
Financing activities
|
|
|
|
||||
Proceeds from borrowings
|
4
|
|
|
1,232
|
|
||
Payments on borrowings
|
(125
|
)
|
|
(757
|
)
|
||
Cash dividends paid
|
(592
|
)
|
|
(609
|
)
|
||
Exercise of employee stock options
|
17
|
|
|
25
|
|
||
Repurchase of shares
|
(1,300
|
)
|
|
(440
|
)
|
||
Employee taxes paid from shares withheld
|
(34
|
)
|
|
(44
|
)
|
||
Other - net
|
(4
|
)
|
|
(6
|
)
|
||
Net cash used in financing activities
|
(2,034
|
)
|
|
(599
|
)
|
||
|
|
|
|
||||
Effect of currency on cash
|
(22
|
)
|
|
7
|
|
||
Less: Increase in cash classified as held for sale
|
(2
|
)
|
|
—
|
|
||
Increase (decrease) in cash
|
(78
|
)
|
|
129
|
|
||
Cash at the beginning of the period
|
370
|
|
|
283
|
|
||
Cash at the end of the period
|
$
|
292
|
|
|
$
|
412
|
|
Note 1.
|
BASIS OF PRESENTATION
|
•
|
The non-cash gains and losses associated with currency exchange derivative contracts have been moved from Changes in working capital to Other-net. This puts the non-cash impact of these derivatives on the same line as the non-cash impact from the balance sheet currency exposures they are used to hedge.
|
•
|
The changes in uncertain tax positions have been moved from Other-net to Changes in working capital. This places the cash flow impact from all taxes on the same line.
|
Note 2.
|
ACQUISITIONS AND DIVESTITURES OF BUSINESSES
|
|
|
June 30, 2020
|
|
December 31, 2019
|
||||
|
|
(Hydraulics business)
|
|
(Lighting business)
|
||||
Cash
|
|
$
|
2
|
|
|
$
|
—
|
|
Accounts receivable - net
|
|
325
|
|
|
220
|
|
||
Inventory
|
|
382
|
|
|
161
|
|
||
Prepaid expenses and other current assets
|
|
12
|
|
|
10
|
|
||
Net property, plant and equipment
|
|
462
|
|
|
155
|
|
||
Goodwill
|
|
907
|
|
|
470
|
|
||
Other intangible assets
|
|
248
|
|
|
330
|
|
||
Operating lease assets
|
|
48
|
|
|
25
|
|
||
Deferred income taxes
|
|
5
|
|
|
—
|
|
||
Other noncurrent assets
|
|
14
|
|
|
6
|
|
||
Assets held for sale - current
|
|
$
|
2,405
|
|
|
$
|
1,377
|
|
|
|
|
|
|
||||
Accounts payable
|
|
$
|
198
|
|
|
$
|
184
|
|
Accrued compensation
|
|
22
|
|
|
7
|
|
||
Other current liabilities
|
|
108
|
|
|
102
|
|
||
Pension liabilities
|
|
72
|
|
|
3
|
|
||
Operating lease liabilities
|
|
28
|
|
|
17
|
|
||
Deferred income taxes
|
|
4
|
|
|
(1
|
)
|
||
Other noncurrent liabilities
|
|
—
|
|
|
13
|
|
||
Liabilities held for sale - current
|
|
$
|
432
|
|
|
$
|
325
|
|
Note 3.
|
REVENUE RECOGNITION
|
|
Three months ended June 30, 2020
|
||||||||||||||
Net sales
|
|
|
Products
|
|
Systems
|
|
Total
|
||||||||
Electrical Americas
|
|
|
$
|
439
|
|
|
$
|
1,051
|
|
|
$
|
1,490
|
|
||
Electrical Global
|
|
|
598
|
|
|
513
|
|
|
1,111
|
|
|||||
|
|
|
|
|
|
|
|
||||||||
|
|
|
United States
|
|
Rest of World
|
|
|
||||||||
Hydraulics
|
|
|
$
|
183
|
|
|
$
|
228
|
|
|
411
|
|
|||
|
|
|
|
|
|
|
|
||||||||
|
Original Equipment Manufacturers
|
|
Aftermarket
|
|
Industrial and Other
|
|
|
||||||||
Aerospace
|
$
|
199
|
|
|
$
|
149
|
|
|
$
|
113
|
|
|
461
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
Commercial
|
|
Passenger and Light Duty
|
|
|
||||||||
Vehicle
|
|
|
$
|
166
|
|
|
$
|
161
|
|
|
327
|
|
|||
|
|
|
|
|
|
|
|
||||||||
eMobility
|
|
|
|
|
|
|
56
|
|
|||||||
|
|
|
|
|
|
|
|
||||||||
Total
|
|
|
|
|
|
|
$
|
3,856
|
|
|
Three months ended June 30, 2019
|
||||||||||||||
Net sales
|
|
|
Products
|
|
Systems
|
|
Total
|
||||||||
Electrical Americas
|
|
|
$
|
948
|
|
|
$
|
1,137
|
|
|
$
|
2,085
|
|
||
Electrical Global
|
|
|
715
|
|
|
609
|
|
|
1,324
|
|
|||||
|
|
|
|
|
|
|
|
||||||||
|
|
|
United States
|
|
Rest of World
|
|
|
||||||||
Hydraulics
|
|
|
$
|
273
|
|
|
330
|
|
|
603
|
|
||||
|
|
|
|
|
|
|
|
||||||||
|
Original Equipment Manufacturers
|
|
Aftermarket
|
|
Industrial and Other
|
|
|
||||||||
Aerospace
|
$
|
302
|
|
|
$
|
214
|
|
|
$
|
118
|
|
|
634
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
Commercial
|
|
Passenger and Light Duty
|
|
|
||||||||
Vehicle
|
|
|
$
|
425
|
|
|
$
|
378
|
|
|
803
|
|
|||
|
|
|
|
|
|
|
|
||||||||
eMobility
|
|
|
|
|
|
|
84
|
|
|||||||
|
|
|
|
|
|
|
|
||||||||
Total
|
|
|
|
|
|
|
$
|
5,533
|
|
|
Six months ended June 30, 2020
|
||||||||||||||
Net sales
|
|
|
Products
|
|
Systems
|
|
Total
|
||||||||
Electrical Americas
|
|
|
$
|
1,163
|
|
|
$
|
2,115
|
|
|
$
|
3,278
|
|
||
Electrical Global
|
|
|
1,255
|
|
|
1,000
|
|
|
2,255
|
|
|||||
|
|
|
|
|
|
|
|
||||||||
|
|
|
United States
|
|
Rest of World
|
|
|
||||||||
Hydraulics
|
|
|
$
|
410
|
|
|
$
|
508
|
|
|
918
|
|
|||
|
|
|
|
|
|
|
|
||||||||
|
Original Equipment Manufacturers
|
|
Aftermarket
|
|
Industrial and Other
|
|
|
||||||||
Aerospace
|
$
|
524
|
|
|
$
|
369
|
|
|
$
|
248
|
|
|
1,141
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
Commercial
|
|
Passenger and Light Duty
|
|
|
||||||||
Vehicle
|
|
|
$
|
458
|
|
|
$
|
467
|
|
|
925
|
|
|||
|
|
|
|
|
|
|
|
||||||||
eMobility
|
|
|
|
|
|
|
128
|
|
|||||||
|
|
|
|
|
|
|
|
||||||||
Total
|
|
|
|
|
|
|
$
|
8,645
|
|
|
Six months ended June 30, 2019
|
||||||||||||||
Net sales
|
|
|
Products
|
|
Systems
|
|
Total
|
||||||||
Electrical Americas
|
|
|
$
|
1,854
|
|
|
$
|
2,192
|
|
|
$
|
4,046
|
|
||
Electrical Global
|
|
|
1,411
|
|
|
1,155
|
|
|
2,566
|
|
|||||
|
|
|
|
|
|
|
|
||||||||
|
|
|
United States
|
|
Rest of World
|
|
|
||||||||
Hydraulics
|
|
|
$
|
539
|
|
|
$
|
669
|
|
|
1,208
|
|
|||
|
|
|
|
|
|
|
|
||||||||
|
Original Equipment Manufacturers
|
|
Aftermarket
|
|
Industrial and Other
|
|
|
||||||||
Aerospace
|
$
|
592
|
|
|
$
|
425
|
|
|
$
|
221
|
|
|
1,238
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
Commercial
|
|
Passenger and Light Duty
|
|
|
||||||||
Vehicle
|
|
|
$
|
856
|
|
|
$
|
757
|
|
|
1,613
|
|
|||
|
|
|
|
|
|
|
|
||||||||
eMobility
|
|
|
|
|
|
|
167
|
|
|||||||
|
|
|
|
|
|
|
|
||||||||
Total
|
|
|
|
|
|
|
$
|
10,838
|
|
|
Deferred Revenue
|
||
Balance at January 1, 2020
|
$
|
234
|
|
Customer deposits and billings
|
464
|
|
|
Revenue recognized in the period
|
(459
|
)
|
|
Translation
|
(1
|
)
|
|
Deferred revenue reclassified to held for sale
|
(11
|
)
|
|
Balance at June 30, 2020
|
$
|
227
|
|
|
Deferred Revenue
|
||
Balance at January 1, 2019
|
$
|
248
|
|
Customer deposits and billings
|
440
|
|
|
Revenue recognized in the period
|
(440
|
)
|
|
Translation
|
5
|
|
|
Balance at June 30, 2019
|
$
|
253
|
|
|
June 30,
2020 |
|
December 31,
2019 |
||||
Raw materials
|
$
|
774
|
|
|
$
|
986
|
|
Work-in-process
|
522
|
|
|
640
|
|
||
Finished goods
|
842
|
|
|
1,179
|
|
||
Total inventory
|
$
|
2,138
|
|
|
$
|
2,805
|
|
Note 6.
|
GOODWILL
|
|
January 1,
2020 |
|
Additions
|
|
Goodwill reclassified to held for sale
|
|
Translation
|
|
June 30,
2020 |
||||||||||
Electrical Americas
|
$
|
6,352
|
|
|
$
|
110
|
|
|
$
|
—
|
|
|
$
|
(29
|
)
|
|
$
|
6,433
|
|
Electrical Global
|
4,106
|
|
|
7
|
|
|
—
|
|
|
(116
|
)
|
|
3,997
|
|
|||||
Hydraulics
|
921
|
|
|
—
|
|
|
(907
|
)
|
|
(14
|
)
|
|
—
|
|
|||||
Aerospace
|
1,706
|
|
|
2
|
|
|
—
|
|
|
(10
|
)
|
|
1,698
|
|
|||||
Vehicle
|
291
|
|
|
—
|
|
|
—
|
|
|
(2
|
)
|
|
289
|
|
|||||
eMobility
|
80
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
80
|
|
|||||
Total
|
$
|
13,456
|
|
|
$
|
119
|
|
|
$
|
(907
|
)
|
|
$
|
(171
|
)
|
|
$
|
12,497
|
|
|
United States
pension benefit expense |
|
Non-United States
pension benefit expense |
|
Other postretirement
benefits expense |
|||||||||||||||||||
|
Three months ended June 30
|
|||||||||||||||||||||||
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|||||||||||||
Service cost
|
$
|
24
|
|
|
$
|
23
|
|
|
$
|
18
|
|
|
$
|
15
|
|
|
$
|
1
|
|
|
$
|
1
|
|
|
Interest cost
|
26
|
|
|
34
|
|
|
11
|
|
|
14
|
|
|
2
|
|
|
4
|
|
|||||||
Expected return on plan assets
|
(58
|
)
|
|
(59
|
)
|
|
(27
|
)
|
|
(27
|
)
|
|
—
|
|
|
(1
|
)
|
|||||||
Amortization
|
26
|
|
|
16
|
|
|
14
|
|
|
9
|
|
|
(3
|
)
|
|
(4
|
)
|
|||||||
|
18
|
|
|
14
|
|
|
16
|
|
|
11
|
|
|
—
|
|
|
—
|
|
|||||||
Settlements and special termination benefits
|
18
|
|
|
13
|
|
|
3
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|||||||
Total expense
|
$
|
36
|
|
|
$
|
27
|
|
|
$
|
19
|
|
|
$
|
12
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
||||||||||||||||||||||||
|
United States
pension benefit expense |
|
Non-United States
pension benefit expense |
|
Other postretirement
benefits expense |
|||||||||||||||||||
|
Six months ended June 30
|
|||||||||||||||||||||||
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|||||||||||||
Service cost
|
$
|
48
|
|
|
$
|
46
|
|
|
$
|
36
|
|
|
$
|
29
|
|
|
$
|
1
|
|
|
$
|
1
|
|
|
Interest cost
|
52
|
|
|
68
|
|
|
22
|
|
|
29
|
|
|
4
|
|
|
7
|
|
|||||||
Expected return on plan assets
|
(115
|
)
|
|
(117
|
)
|
|
(54
|
)
|
|
(54
|
)
|
|
—
|
|
|
(1
|
)
|
|||||||
Amortization
|
51
|
|
|
31
|
|
|
29
|
|
|
19
|
|
|
(6
|
)
|
|
(7
|
)
|
|||||||
|
36
|
|
|
28
|
|
|
33
|
|
|
23
|
|
|
(1
|
)
|
|
—
|
|
|||||||
Settlements, curtailments and special termination benefits
|
35
|
|
|
23
|
|
|
6
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|||||||
Total expense
|
$
|
71
|
|
|
$
|
51
|
|
|
$
|
39
|
|
|
$
|
24
|
|
|
$
|
(1
|
)
|
|
$
|
—
|
|
Note 8.
|
LEGAL CONTINGENCIES
|
Note 9.
|
INCOME TAXES
|
|
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, 2020
|
413.3
|
|
|
$
|
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
|
—
|
|
|
—
|
|
|
—
|
|
|
(300
|
)
|
|
—
|
|
|
—
|
|
|
(300
|
)
|
|
(5
|
)
|
|
(305
|
)
|
||||||||
Issuance of shares under equity-based compensation plans
|
0.9
|
|
|
—
|
|
|
3
|
|
|
(1
|
)
|
|
—
|
|
|
(1
|
)
|
|
1
|
|
|
—
|
|
|
1
|
|
||||||||
Changes in noncontrolling interest of consolidated subsidiaries - net
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3
|
)
|
|
(3
|
)
|
||||||||
Repurchase of shares
|
(14.2
|
)
|
|
—
|
|
|
—
|
|
|
(1,300
|
)
|
|
—
|
|
|
—
|
|
|
(1,300
|
)
|
|
—
|
|
|
(1,300
|
)
|
||||||||
Balance at March 31, 2020
|
400.0
|
|
|
$
|
4
|
|
|
$
|
12,203
|
|
|
$
|
7,007
|
|
|
$
|
(4,966
|
)
|
|
$
|
(3
|
)
|
|
$
|
14,245
|
|
|
$
|
43
|
|
|
$
|
14,288
|
|
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
51
|
|
|
—
|
|
|
—
|
|
|
51
|
|
|
3
|
|
|
54
|
|
||||||||
Other comprehensive income, net of tax
|
|
|
|
|
|
|
|
|
157
|
|
|
|
|
157
|
|
|
|
|
157
|
|
||||||||||||||
Cash dividends paid
|
—
|
|
|
—
|
|
|
—
|
|
|
(292
|
)
|
|
—
|
|
|
—
|
|
|
(292
|
)
|
|
(1
|
)
|
|
(293
|
)
|
||||||||
Issuance of shares under equity-based compensation plans
|
0.1
|
|
|
—
|
|
|
25
|
|
|
1
|
|
|
—
|
|
|
1
|
|
|
27
|
|
|
—
|
|
|
27
|
|
||||||||
Changes in noncontrolling interest of consolidated subsidiaries - net
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
2
|
|
||||||||
Balance at June 30, 2020
|
400.1
|
|
|
$
|
4
|
|
|
$
|
12,228
|
|
|
$
|
6,767
|
|
|
$
|
(4,809
|
)
|
|
$
|
(2
|
)
|
|
$
|
14,188
|
|
|
$
|
47
|
|
|
$
|
14,235
|
|
|
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, 2019
|
423.6
|
|
|
$
|
4
|
|
|
$
|
12,090
|
|
|
$
|
8,161
|
|
|
$
|
(4,145
|
)
|
|
$
|
(3
|
)
|
|
$
|
16,107
|
|
|
$
|
35
|
|
|
$
|
16,142
|
|
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
522
|
|
|
—
|
|
|
—
|
|
|
522
|
|
|
—
|
|
|
522
|
|
||||||||
Other comprehensive income, net of tax
|
|
|
|
|
|
|
|
|
67
|
|
|
|
|
67
|
|
|
—
|
|
|
67
|
|
|||||||||||||
Cash dividends paid and accrued
|
—
|
|
|
—
|
|
|
—
|
|
|
(309
|
)
|
|
—
|
|
|
—
|
|
|
(309
|
)
|
|
(1
|
)
|
|
(310
|
)
|
||||||||
Issuance of shares under equity-based compensation plans
|
1.4
|
|
|
—
|
|
|
(5
|
)
|
|
1
|
|
|
—
|
|
|
—
|
|
|
(4
|
)
|
|
—
|
|
|
(4
|
)
|
||||||||
Repurchase of shares
|
(1.9
|
)
|
|
—
|
|
|
—
|
|
|
(150
|
)
|
|
—
|
|
|
—
|
|
|
(150
|
)
|
|
—
|
|
|
(150
|
)
|
||||||||
Balance at March 31, 2019
|
423.1
|
|
|
$
|
4
|
|
|
$
|
12,085
|
|
|
$
|
8,225
|
|
|
$
|
(4,078
|
)
|
|
$
|
(3
|
)
|
|
$
|
16,233
|
|
|
$
|
34
|
|
|
$
|
16,267
|
|
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
636
|
|
|
—
|
|
|
—
|
|
|
636
|
|
|
—
|
|
|
636
|
|
||||||||
Other comprehensive loss, net of tax
|
—
|
|
|
|
|
|
|
|
|
(30
|
)
|
|
|
|
(30
|
)
|
|
|
|
(30
|
)
|
|||||||||||||
Cash dividends paid
|
—
|
|
|
—
|
|
|
—
|
|
|
(300
|
)
|
|
—
|
|
|
—
|
|
|
(300
|
)
|
|
(1
|
)
|
|
(301
|
)
|
||||||||
Issuance of shares under equity-based compensation plans
|
0.1
|
|
|
—
|
|
|
27
|
|
|
(1
|
)
|
|
—
|
|
|
1
|
|
|
27
|
|
|
—
|
|
|
27
|
|
||||||||
Acquisition of a business
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
51
|
|
|
51
|
|
||||||||
Acquisition of noncontrolling interest obtained through tender offer
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(29
|
)
|
|
(29
|
)
|
||||||||
Repurchase of Shares
|
(3.2
|
)
|
|
—
|
|
|
—
|
|
|
(260
|
)
|
|
—
|
|
|
—
|
|
|
(260
|
)
|
|
—
|
|
|
(260
|
)
|
||||||||
Balance at June 30, 2019
|
420.0
|
|
|
$
|
4
|
|
|
$
|
12,112
|
|
|
$
|
8,300
|
|
|
$
|
(4,108
|
)
|
|
$
|
(2
|
)
|
|
$
|
16,306
|
|
|
$
|
55
|
|
|
$
|
16,361
|
|
|
Currency translation and related hedging instruments
|
|
Pensions and other postretirement benefits
|
|
Cash flow
hedges
|
|
Total
|
||||||||
Balance at January 1, 2020
|
$
|
(2,848
|
)
|
|
$
|
(1,408
|
)
|
|
$
|
(34
|
)
|
|
$
|
(4,290
|
)
|
Other comprehensive (loss) income
before reclassifications
|
(530
|
)
|
|
23
|
|
|
(143
|
)
|
|
(650
|
)
|
||||
Amounts reclassified from Accumulated other
comprehensive loss
|
37
|
|
|
89
|
|
|
5
|
|
|
131
|
|
||||
Net current-period Other comprehensive
(loss) income
|
(493
|
)
|
|
112
|
|
|
(138
|
)
|
|
(519
|
)
|
||||
Balance at June 30, 2020
|
$
|
(3,341
|
)
|
|
$
|
(1,296
|
)
|
|
$
|
(172
|
)
|
|
$
|
(4,809
|
)
|
|
Six months ended June 30, 2020
|
|
Consolidated statements
of income classification
|
||
Currency translation losses
|
|
|
|
||
Sale of business
|
$
|
(37
|
)
|
|
Gain on sale of business
|
Tax expense
|
—
|
|
|
|
|
Total, net of tax
|
(37
|
)
|
|
|
|
|
|
|
|
||
Amortization of defined benefit pensions and other postretirement benefits items
|
|
|
|
||
Actuarial loss and prior service cost
|
(115
|
)
|
1
|
|
|
Tax benefit
|
26
|
|
|
|
|
Total, net of tax
|
(89
|
)
|
|
|
|
|
|
|
|
||
Gains and (losses) on cash flow hedges
|
|
|
|
||
Currency exchange contracts
|
(6
|
)
|
|
Net sales and Cost of products sold
|
|
Tax benefit
|
1
|
|
|
|
|
Total, net of tax
|
(5
|
)
|
|
|
|
|
|
|
|
||
Total reclassifications for the period
|
$
|
(131
|
)
|
|
|
|
Three months ended
June 30 |
|
Six months ended
June 30 |
||||||||||||
(Shares in millions)
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||||||
Net income attributable to Eaton ordinary shareholders
|
$
|
51
|
|
|
$
|
636
|
|
|
$
|
489
|
|
|
$
|
1,158
|
|
|
|
|
|
|
|
|
|
||||||||
Weighted-average number of ordinary shares outstanding - diluted
|
401.3
|
|
|
423.1
|
|
|
406.2
|
|
|
424.5
|
|
||||
Less dilutive effect of equity-based compensation
|
0.9
|
|
|
1.5
|
|
|
1.4
|
|
|
1.7
|
|
||||
Weighted-average number of ordinary shares outstanding - basic
|
400.4
|
|
|
421.6
|
|
|
404.8
|
|
|
422.8
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Net income per share attributable to Eaton ordinary shareholders
|
|
|
|
|
|
|
|
||||||||
Diluted
|
$
|
0.13
|
|
|
$
|
1.50
|
|
|
$
|
1.20
|
|
|
$
|
2.73
|
|
Basic
|
0.13
|
|
|
1.51
|
|
|
1.21
|
|
|
2.74
|
|
Note 11.
|
FAIR VALUE MEASUREMENTS
|
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||
June 30, 2020
|
|
|
|
|
|
|
|
||||||||
Cash
|
$
|
292
|
|
|
$
|
292
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Short-term investments
|
204
|
|
|
204
|
|
|
—
|
|
|
—
|
|
||||
Net derivative contracts
|
(75
|
)
|
|
—
|
|
|
(75
|
)
|
|
—
|
|
||||
|
|
|
|
|
|
|
|
||||||||
December 31, 2019
|
|
|
|
|
|
|
|
||||||||
Cash
|
$
|
370
|
|
|
$
|
370
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Short-term investments
|
221
|
|
|
221
|
|
|
—
|
|
|
—
|
|
||||
Net derivative contracts
|
53
|
|
|
—
|
|
|
53
|
|
|
—
|
|
Note 12.
|
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES
|
•
|
Hedges of the change in the fair value of a recognized fixed-rate asset or liability, or the firm commitment to acquire such an asset or liability (a fair value hedge); for these hedges, the gain or loss from the derivative financial instrument, as well as the offsetting loss or gain on the hedged item attributable to the hedged risk, are recognized in income during the period of change in fair value.
|
•
|
Hedges of the variable cash flows of a recognized variable-rate asset or liability, or the forecasted acquisition of such an asset or liability (a cash flow hedge); for these hedges, the gain or loss from the derivative financial instrument is recognized in Accumulated other comprehensive income and reclassified to income in the same period when the gain or loss on the hedged item is included in income.
|
•
|
Hedges of the currency exposure related to a net investment in a foreign operation (a net investment hedge); for these hedges, the gain or loss from the derivative financial instrument is recognized in Accumulated other comprehensive income and reclassified to income in the same period when the gain or loss related to the net investment in the foreign operation is included in income.
|
|
Notional
amount
|
|
Other
current
assets
|
|
Other
noncurrent
assets
|
|
Other
current
liabilities
|
|
Other
noncurrent
liabilities
|
|
Type of
hedge
|
|
Term
|
||||||||||
June 30, 2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Derivatives designated as hedges
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Fixed-to-floating interest rate
swaps
|
$
|
2,225
|
|
|
$
|
5
|
|
|
$
|
121
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
Fair value
|
|
6 months to 15 years
|
Forward starting floating-to-fixed
interest rate swaps
|
850
|
|
|
—
|
|
|
3
|
|
|
—
|
|
|
178
|
|
|
Cash flow
|
|
33 years
|
|||||
Currency exchange contracts
|
1,031
|
|
|
9
|
|
|
1
|
|
|
37
|
|
|
12
|
|
|
Cash flow
|
|
1 to 36 months
|
|||||
Commodity contracts
|
13
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Cash flow
|
|
1 to 10 months
|
|||||
Total
|
|
|
$
|
15
|
|
|
$
|
125
|
|
|
$
|
37
|
|
|
$
|
190
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Derivatives not designated as
hedges
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Currency exchange contracts
|
$
|
4,354
|
|
|
$
|
30
|
|
|
|
|
$
|
19
|
|
|
|
|
|
|
1 to 12 months
|
||||
Commodity contracts
|
7
|
|
|
1
|
|
|
|
|
—
|
|
|
|
|
|
|
1 month
|
|||||||
Total
|
|
|
$
|
31
|
|
|
|
|
|
$
|
19
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
December 31, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Derivatives designated as hedges
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Fixed-to-floating interest rate
swaps
|
$
|
2,225
|
|
|
$
|
—
|
|
|
$
|
57
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
Fair value
|
|
12 months to 15 years
|
Forward starting floating-to-fixed
interest rate swaps
|
500
|
|
|
—
|
|
|
3
|
|
|
—
|
|
|
42
|
|
|
Cash flow
|
|
13 to 33 years
|
|||||
Currency exchange contracts
|
1,146
|
|
|
14
|
|
|
3
|
|
|
11
|
|
|
6
|
|
|
Cash flow
|
|
1 to 36 months
|
|||||
Commodity contracts
|
9
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Cash flow
|
|
1 to 9 months
|
|||||
Total
|
|
|
$
|
14
|
|
|
$
|
63
|
|
|
$
|
11
|
|
|
$
|
48
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Derivatives not designated as
hedges
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Currency exchange contracts
|
$
|
4,975
|
|
|
$
|
48
|
|
|
|
|
$
|
13
|
|
|
|
|
|
|
1 to 12 months
|
||||
Commodity contracts
|
3
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
|
|
1 month
|
|||||||
Total
|
|
|
$
|
48
|
|
|
|
|
|
$
|
13
|
|
|
|
|
|
|
|
|
Commodity
|
|
June 30, 2020
|
|
|
|
Term
|
|
Copper
|
|
5
|
|
|
millions of pounds
|
|
1 to 10 months
|
Gold
|
|
622
|
|
|
Troy ounces
|
|
1 to 3 months
|
|
Three months ended June 30, 2020
|
||||||||||
|
Net Sales
|
|
Cost of products sold
|
|
Interest expense - net
|
||||||
Amounts from Consolidated Statements of Income
|
$
|
3,856
|
|
|
$
|
2,877
|
|
|
$
|
38
|
|
|
|
|
|
|
|
||||||
Gain (loss) on derivatives designated as cash flow hedges
|
|
|
|
|
|
||||||
Currency exchange contracts
|
|
|
|
|
|
||||||
Hedged item
|
$
|
5
|
|
|
$
|
4
|
|
|
$
|
—
|
|
Derivative designated as hedging instrument
|
(5
|
)
|
|
(4
|
)
|
|
—
|
|
|||
|
|
|
|
|
|
||||||
Commodity contracts
|
|
|
|
|
|
||||||
Hedged item
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Derivative designated as hedging instrument
|
—
|
|
|
—
|
|
|
—
|
|
|||
|
|
|
|
|
|
||||||
Gain (loss) on derivatives designated as fair value hedges
|
|
|
|
|
|
||||||
Fixed-to-floating interest rate swaps
|
|
|
|
|
|
||||||
Hedged item
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(1
|
)
|
Derivative designated as hedging instrument
|
—
|
|
|
—
|
|
|
1
|
|
|
Three months ended June 30, 2019
|
||||||||||
|
Net Sales
|
|
Cost of products sold
|
|
Interest expense - net
|
||||||
Amounts from Consolidated Statements of Income
|
$
|
5,533
|
|
|
$
|
3,697
|
|
|
$
|
50
|
|
|
|
|
|
|
|
||||||
Gain (loss) on derivatives designated as cash flow hedges
|
|
|
|
|
|
||||||
Currency exchange contracts
|
|
|
|
|
|
||||||
Hedged item
|
$
|
2
|
|
|
$
|
(4
|
)
|
|
$
|
—
|
|
Derivative designated as hedging instrument
|
(2
|
)
|
|
4
|
|
|
—
|
|
|||
|
|
|
|
|
|
||||||
Commodity contracts
|
|
|
|
|
|
||||||
Hedged item
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Derivative designated as hedging instrument
|
—
|
|
|
—
|
|
|
—
|
|
|||
|
|
|
|
|
|
||||||
Gain (loss) on derivatives designated as fair value hedges
|
|
|
|
|
|
||||||
Fixed-to-floating interest rate swaps
|
|
|
|
|
|
||||||
Hedged item
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(40
|
)
|
Derivative designated as hedging instrument
|
—
|
|
|
—
|
|
|
40
|
|
|
Six months ended June 30, 2020
|
||||||||||
|
Net Sales
|
|
Cost of products sold
|
|
Interest expense - net
|
||||||
Amounts from Consolidated Statements of Income
|
$
|
8,645
|
|
|
$
|
6,179
|
|
|
$
|
72
|
|
|
|
|
|
|
|
||||||
Gain (loss) on derivatives designated as cash flow hedges
|
|
|
|
|
|
||||||
Currency exchange contracts
|
|
|
|
|
|
||||||
Hedged item
|
$
|
5
|
|
|
$
|
1
|
|
|
$
|
—
|
|
Derivative designated as hedging instrument
|
(5
|
)
|
|
(1
|
)
|
|
—
|
|
|||
|
|
|
|
|
|
||||||
Commodity contracts
|
|
|
|
|
|
||||||
Hedged item
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Derivative designated as hedging instrument
|
—
|
|
|
—
|
|
|
—
|
|
|||
|
|
|
|
|
|
||||||
Gain (loss) on derivatives designated as fair value hedges
|
|
|
|
|
|
||||||
Fixed-to-floating interest rate swaps
|
|
|
|
|
|
||||||
Hedged item
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(69
|
)
|
Derivative designated as hedging instrument
|
—
|
|
|
—
|
|
|
69
|
|
|
Six months ended June 30, 2019
|
||||||||||
|
Net Sales
|
|
Cost of products sold
|
|
Interest expense - net
|
||||||
Amounts from Consolidated Statements of Income
|
$
|
10,838
|
|
|
$
|
7,270
|
|
|
$
|
110
|
|
|
|
|
|
|
|
||||||
Gain (loss) on derivatives designated as cash flow hedges
|
|
|
|
|
|
||||||
Currency exchange contracts
|
|
|
|
|
|
||||||
Hedged item
|
$
|
5
|
|
|
$
|
(9
|
)
|
|
$
|
—
|
|
Derivative designated as hedging instrument
|
(5
|
)
|
|
9
|
|
|
—
|
|
|||
|
|
|
|
|
|
||||||
Commodity contracts
|
|
|
|
|
|
||||||
Hedged item
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Derivative designated as hedging instrument
|
—
|
|
|
—
|
|
|
—
|
|
|||
|
|
|
|
|
|
||||||
Gain (loss) on derivatives designated as fair value hedges
|
|
|
|
|
|
||||||
Fixed-to-floating interest rate swaps
|
|
|
|
|
|
||||||
Hedged item
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(63
|
)
|
Derivative designated as hedging instrument
|
—
|
|
|
—
|
|
|
63
|
|
|
Gain (loss) recognized in Consolidated Statements of Income
|
|
Consolidated Statements of Income classification
|
||||||
|
Three months ended
June 30 |
|
|
||||||
|
2020
|
|
2019
|
|
|
||||
Gain (loss) on derivatives not designated as hedges
|
|
|
|
|
|
||||
Currency exchange contracts
|
$
|
46
|
|
|
$
|
8
|
|
|
Interest expense - net
|
Commodity Contracts
|
1
|
|
|
(1
|
)
|
|
Cost of products sold
|
||
Total
|
$
|
47
|
|
|
$
|
7
|
|
|
|
|
Gain (loss) recognized in Consolidated Statements of Income
|
|
Consolidated Statements of Income classification
|
||||||
|
Six months ended
June 30 |
|
|
||||||
|
2020
|
|
2019
|
|
|
||||
Gain (loss) on derivatives not designated as hedges
|
|
|
|
|
|
||||
Currency exchange contracts
|
$
|
(103
|
)
|
|
$
|
48
|
|
|
Interest expense - net
|
Commodity Contracts
|
1
|
|
|
—
|
|
|
Cost of products sold
|
||
Total
|
$
|
(102
|
)
|
|
$
|
48
|
|
|
|
|
Gain (loss) recognized in
other comprehensive
(loss) income
|
|
Location of gain (loss)
reclassified from
Accumulated other
comprehensive loss
|
|
Gain (loss) reclassified
from Accumulated other
comprehensive loss
|
||||||||||||
|
Three months ended
June 30 |
|
|
|
Three months ended
June 30 |
||||||||||||
|
2020
|
|
2019
|
|
|
|
2020
|
|
2019
|
||||||||
Derivatives designated as
cash flow hedges
|
|
|
|
|
|
|
|
|
|
||||||||
Forward starting floating-to-fixed
interest rate swaps
|
$
|
11
|
|
|
$
|
(18
|
)
|
|
Interest expense - net
|
|
$
|
—
|
|
|
$
|
—
|
|
Currency exchange contracts
|
(3
|
)
|
|
(10
|
)
|
|
Net sales and Cost of products sold
|
|
(9
|
)
|
|
2
|
|
||||
Commodity contracts
|
3
|
|
|
(2
|
)
|
|
Cost of products sold
|
|
—
|
|
|
—
|
|
||||
Non-derivative designated as net
investment hedges
|
|
|
|
|
|
|
|
|
|
||||||||
Foreign currency denominated debt
|
(38
|
)
|
|
—
|
|
|
Interest expense - net
|
|
—
|
|
|
—
|
|
||||
Total
|
$
|
(27
|
)
|
|
$
|
(30
|
)
|
|
|
|
$
|
(9
|
)
|
|
$
|
2
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
||||||||
|
Gain (loss) recognized in
other comprehensive (loss) income |
|
Location of gain (loss)
reclassified from Accumulated other comprehensive loss |
|
Gain (loss) reclassified
from Accumulated other comprehensive loss |
||||||||||||
|
Six months ended
June 30 |
|
|
|
Six months ended
June 30 |
||||||||||||
|
2020
|
|
2019
|
|
|
|
2020
|
|
2019
|
||||||||
Derivatives designated as cash
flow hedges |
|
|
|
|
|
|
|
|
|
||||||||
Forward starting floating-to-fixed
interest rate swaps |
$
|
(136
|
)
|
|
$
|
(27
|
)
|
|
Interest expense - net
|
|
$
|
—
|
|
|
$
|
—
|
|
Currency exchange contracts
|
(45
|
)
|
|
(10
|
)
|
|
Net sales and Cost of products sold
|
|
(6
|
)
|
|
4
|
|
||||
Commodity contracts
|
1
|
|
|
—
|
|
|
Cost of products sold
|
|
—
|
|
|
—
|
|
||||
Non-derivative designated as net
investment hedges
|
|
|
|
|
|
|
|
|
|
||||||||
Foreign currency denominated debt
|
5
|
|
|
12
|
|
|
Interest expense - net
|
|
—
|
|
|
—
|
|
||||
Total
|
$
|
(175
|
)
|
|
$
|
(25
|
)
|
|
|
|
$
|
(6
|
)
|
|
$
|
4
|
|
Note 13.
|
RESTRUCTURING CHARGES
|
|
Three months ended June 30, 2020
|
||
Workforce reductions
|
$
|
166
|
|
Plant closing and other
|
21
|
|
|
Total
|
$
|
187
|
|
|
Three months ended June 30, 2020
|
||
Electrical Americas
|
$
|
13
|
|
Electrical Global
|
51
|
|
|
Aerospace
|
30
|
|
|
Vehicle
|
90
|
|
|
eMobility
|
1
|
|
|
Corporate
|
2
|
|
|
Total
|
$
|
187
|
|
|
Workforce reductions
|
|
Plant closing and other
|
|
Total
|
||||||
Balance at December 31, 2019
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Liability recognized
|
166
|
|
|
21
|
|
|
187
|
|
|||
Payments, utilization and translation
|
(9
|
)
|
|
(21
|
)
|
|
(30
|
)
|
|||
Balance at June 30, 2020
|
$
|
157
|
|
|
$
|
—
|
|
|
$
|
157
|
|
Note 14.
|
BUSINESS SEGMENT INFORMATION
|
|
Three months ended
June 30 |
|
Six months ended
June 30 |
||||||||||||
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||||||
Net sales
|
|
|
|
|
|
|
|
||||||||
Electrical Americas
|
$
|
1,490
|
|
|
$
|
2,085
|
|
|
$
|
3,278
|
|
|
$
|
4,046
|
|
Electrical Global
|
1,111
|
|
|
1,324
|
|
|
2,255
|
|
|
2,566
|
|
||||
Hydraulics
|
411
|
|
|
603
|
|
|
918
|
|
|
1,208
|
|
||||
Aerospace
|
461
|
|
|
634
|
|
|
1,141
|
|
|
1,238
|
|
||||
Vehicle
|
327
|
|
|
803
|
|
|
925
|
|
|
1,613
|
|
||||
eMobility
|
56
|
|
|
84
|
|
|
128
|
|
|
167
|
|
||||
Total net sales
|
$
|
3,856
|
|
|
$
|
5,533
|
|
|
$
|
8,645
|
|
|
$
|
10,838
|
|
|
|
|
|
|
|
|
|
||||||||
Segment operating profit (loss)
|
|
|
|
|
|
|
|
||||||||
Electrical Americas
|
$
|
308
|
|
|
$
|
404
|
|
|
$
|
616
|
|
|
$
|
738
|
|
Electrical Global
|
178
|
|
|
233
|
|
|
344
|
|
|
423
|
|
||||
Hydraulics
|
37
|
|
|
53
|
|
|
92
|
|
|
112
|
|
||||
Aerospace
|
68
|
|
|
155
|
|
|
215
|
|
|
292
|
|
||||
Vehicle
|
(21
|
)
|
|
136
|
|
|
60
|
|
|
258
|
|
||||
eMobility
|
(2
|
)
|
|
7
|
|
|
(1
|
)
|
|
12
|
|
||||
Total segment operating profit
|
568
|
|
|
988
|
|
|
1,326
|
|
|
1,835
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Corporate
|
|
|
|
|
|
|
|
||||||||
Amortization of intangible assets
|
(88
|
)
|
|
(94
|
)
|
|
(175
|
)
|
|
(187
|
)
|
||||
Interest expense - net
|
(38
|
)
|
|
(50
|
)
|
|
(72
|
)
|
|
(110
|
)
|
||||
Pension and other postretirement benefits expense
|
(12
|
)
|
|
(2
|
)
|
|
(20
|
)
|
|
(2
|
)
|
||||
Restructuring program charges
|
(187
|
)
|
|
—
|
|
|
(187
|
)
|
|
—
|
|
||||
Other expense - net
|
(196
|
)
|
|
(104
|
)
|
|
(204
|
)
|
|
(195
|
)
|
||||
Income before income taxes
|
47
|
|
|
738
|
|
|
668
|
|
|
1,341
|
|
||||
Income tax expense (benefit)
|
(7
|
)
|
|
102
|
|
|
176
|
|
|
183
|
|
||||
Net income
|
54
|
|
|
636
|
|
|
492
|
|
|
1,158
|
|
||||
Less net income for noncontrolling interests
|
(3
|
)
|
|
—
|
|
|
(3
|
)
|
|
—
|
|
||||
Net income attributable to Eaton ordinary shareholders
|
$
|
51
|
|
|
$
|
636
|
|
|
$
|
489
|
|
|
$
|
1,158
|
|
ITEM 2.
|
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.
|
|
Three months ended
June 30 |
|
Six months ended
June 30 |
||||||||||||
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||||||
Net sales
|
$
|
3,856
|
|
|
$
|
5,533
|
|
|
$
|
8,645
|
|
|
$
|
10,838
|
|
Net income attributable to Eaton ordinary shareholders
|
51
|
|
|
636
|
|
|
489
|
|
|
1,158
|
|
||||
Net income per share attributable to Eaton ordinary shareholders - diluted
|
$
|
0.13
|
|
|
$
|
1.50
|
|
|
$
|
1.20
|
|
|
$
|
2.73
|
|
•
|
Reduction of senior executive base salaries in the second quarter
|
•
|
50% reduction in cash retainer for non-employee members of the Board of Directors in the second quarter
|
•
|
Implementation of unpaid leave programs
|
•
|
Eliminated merit increases for all of 2020
|
•
|
Reduction of discretionary expenses and implementation of travel and hiring freezes
|
•
|
Elimination of nonessential capital spending
|
•
|
Trained our sites around the world in cleaning and disinfecting protocols
|
•
|
Enacted social distancing procedures, staggered shifts, implemented a rotating office work schedule, and modified workspace and meeting space layouts
|
•
|
Requiring employees to stay at home if they are feeling ill, and encouraging increased hand washing and hygiene practices across all sites
|
•
|
Advised employees to take advantage of flexible work options
|
•
|
Restricting visitors to all sites
|
•
|
Consulting regularly with doctors and health care organizations
|
•
|
Updating the Company's response plans as new information becomes available
|
•
|
Communication with all who may have been exposed
|
•
|
Disinfecting work stations and common areas
|
•
|
Shutting down the facility if warranted
|
•
|
Staying in close contact with our suppliers to manage the supply chain
|
•
|
Equipping our service technicians with additional personal protective equipment as needed
|
•
|
Coordinating with local, state and national governments
|
•
|
Following governmental and health authorities' guidelines
|
|
Three months ended
June 30 |
|
Six months ended
June 30 |
||||||||||||
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||||||
Acquisition integration, divestiture charges and transaction costs
|
$
|
103
|
|
|
$
|
14
|
|
|
$
|
235
|
|
|
$
|
26
|
|
Gain on the sale of the Lighting business
|
—
|
|
|
—
|
|
|
(221
|
)
|
|
—
|
|
||||
Total before income taxes
|
103
|
|
|
14
|
|
|
14
|
|
|
26
|
|
||||
Income tax expense (benefit)
|
(23
|
)
|
|
—
|
|
|
75
|
|
|
(1
|
)
|
||||
Total after income taxes
|
$
|
80
|
|
|
$
|
14
|
|
|
$
|
89
|
|
|
$
|
25
|
|
Per ordinary share - diluted
|
$
|
0.20
|
|
|
$
|
0.03
|
|
|
$
|
0.22
|
|
|
$
|
0.06
|
|
|
Three months ended
June 30 |
|
Increase (decrease)
|
|
Six months ended
June 30 |
|
Increase (decrease)
|
||||||||||||||
|
2020
|
|
2019
|
|
|
2020
|
|
2019
|
|
||||||||||||
Net sales
|
$
|
3,856
|
|
|
$
|
5,533
|
|
|
(30
|
)%
|
|
$
|
8,645
|
|
|
$
|
10,838
|
|
|
(20
|
)%
|
Gross profit
|
979
|
|
|
1,836
|
|
|
(47
|
)%
|
|
2,466
|
|
|
3,568
|
|
|
(31
|
)%
|
||||
Percent of net sales
|
25.4
|
%
|
|
33.2
|
%
|
|
|
|
28.5
|
%
|
|
32.9
|
%
|
|
|
||||||
Income before income taxes
|
47
|
|
|
738
|
|
|
(94
|
)%
|
|
668
|
|
|
1,341
|
|
|
(50
|
)%
|
||||
Net income
|
54
|
|
|
636
|
|
|
(92
|
)%
|
|
492
|
|
|
1,158
|
|
|
(58
|
)%
|
||||
Less net income for noncontrolling interests
|
(3
|
)
|
|
—
|
|
|
|
|
(3
|
)
|
|
—
|
|
|
|
||||||
Net income attributable to Eaton ordinary shareholders
|
51
|
|
|
636
|
|
|
(92
|
)%
|
|
489
|
|
|
1,158
|
|
|
(58
|
)%
|
||||
Excluding acquisition and divestiture charges, after-tax
|
80
|
|
|
14
|
|
|
|
|
89
|
|
|
25
|
|
|
|
||||||
Excluding restructuring program charges, after-tax
|
148
|
|
|
—
|
|
|
|
|
148
|
|
|
—
|
|
|
|
||||||
Adjusted earnings
|
$
|
279
|
|
|
$
|
650
|
|
|
(57
|
)%
|
|
$
|
726
|
|
|
$
|
1,183
|
|
|
(39
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income per share attributable to Eaton ordinary shareholders - diluted
|
$
|
0.13
|
|
|
$
|
1.50
|
|
|
(91
|
)%
|
|
$
|
1.20
|
|
|
$
|
2.73
|
|
|
(56
|
)%
|
Excluding per share impact of acquisition and divestiture charges, after-tax
|
0.20
|
|
|
0.03
|
|
|
|
|
0.22
|
|
|
0.06
|
|
|
|
||||||
Excluding per share impact of restructuring program charges, after-tax
|
0.37
|
|
|
—
|
|
|
|
|
0.37
|
|
|
—
|
|
|
|
||||||
Adjusted earnings per ordinary share
|
$
|
0.70
|
|
|
$
|
1.53
|
|
|
(54
|
)%
|
|
$
|
1.79
|
|
|
$
|
2.79
|
|
|
(36
|
)%
|
|
Three months ended
June 30 |
|
Increase (decrease)
|
|
Six months ended
June 30 |
|
Increase (decrease)
|
||||||||||||||
|
2020
|
|
2019
|
|
|
2020
|
|
2019
|
|
||||||||||||
Net sales
|
$
|
1,490
|
|
|
$
|
2,085
|
|
|
(29
|
)%
|
|
$
|
3,278
|
|
|
$
|
4,046
|
|
|
(19
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Operating profit
|
$
|
308
|
|
|
$
|
404
|
|
|
(24
|
)%
|
|
$
|
616
|
|
|
$
|
738
|
|
|
(17
|
)%
|
Operating margin
|
20.7
|
%
|
|
19.4
|
%
|
|
|
|
18.8
|
%
|
|
18.2
|
%
|
|
|
|
Three months ended
June 30 |
|
Increase (decrease)
|
|
Six months ended
June 30 |
|
Increase (decrease)
|
||||||||||||||
|
2020
|
|
2019
|
|
|
2020
|
|
2019
|
|
||||||||||||
Net sales
|
$
|
1,111
|
|
|
$
|
1,324
|
|
|
(16
|
)%
|
|
$
|
2,255
|
|
|
$
|
2,566
|
|
|
(12
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Operating profit
|
$
|
178
|
|
|
$
|
233
|
|
|
(24
|
)%
|
|
$
|
344
|
|
|
$
|
423
|
|
|
(19
|
)%
|
Operating margin
|
16.0
|
%
|
|
17.6
|
%
|
|
|
|
15.3
|
%
|
|
16.5
|
%
|
|
|
|
Three months ended
June 30 |
|
Increase (decrease)
|
|
Six months ended
June 30 |
|
Increase (decrease)
|
||||||||||||||
|
2020
|
|
2019
|
|
|
2020
|
|
2019
|
|
||||||||||||
Net sales
|
$
|
411
|
|
|
$
|
603
|
|
|
(32
|
)%
|
|
$
|
918
|
|
|
$
|
1,208
|
|
|
(24
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Operating profit
|
$
|
37
|
|
|
$
|
53
|
|
|
(30
|
)%
|
|
$
|
92
|
|
|
$
|
112
|
|
|
(18
|
)%
|
Operating margin
|
9.0
|
%
|
|
8.8
|
%
|
|
|
|
10.0
|
%
|
|
9.3
|
%
|
|
|
|
Three months ended
June 30 |
|
Increase (decrease)
|
|
Six months ended
June 30 |
|
Increase (decrease)
|
||||||||||||||
|
2020
|
|
2019
|
|
|
2020
|
|
2019
|
|
||||||||||||
Net sales
|
$
|
461
|
|
|
$
|
634
|
|
|
(27
|
)%
|
|
$
|
1,141
|
|
|
$
|
1,238
|
|
|
(8
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Operating profit
|
$
|
68
|
|
|
$
|
155
|
|
|
(56
|
)%
|
|
$
|
215
|
|
|
$
|
292
|
|
|
(26
|
)%
|
Operating margin
|
14.8
|
%
|
|
24.4
|
%
|
|
|
|
18.8
|
%
|
|
23.6
|
%
|
|
|
|
Three months ended
June 30 |
|
Increase (decrease)
|
|
Six months ended
June 30 |
|
Increase (decrease)
|
||||||||||||||
|
2020
|
|
2019
|
|
|
2020
|
|
2019
|
|
||||||||||||
Net sales
|
$
|
327
|
|
|
$
|
803
|
|
|
(59
|
)%
|
|
$
|
925
|
|
|
$
|
1,613
|
|
|
(43
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Operating profit (loss)
|
$
|
(21
|
)
|
|
$
|
136
|
|
|
(115
|
)%
|
|
$
|
60
|
|
|
$
|
258
|
|
|
(77
|
)%
|
Operating margin
|
(6.4
|
)%
|
|
16.9
|
%
|
|
|
|
6.5
|
%
|
|
16.0
|
%
|
|
|
|
Three months ended
June 30 |
|
Increase (decrease)
|
|
Six months ended
June 30 |
|
Increase (decrease)
|
||||||||||||||
|
2020
|
|
2019
|
|
|
2020
|
|
2019
|
|
||||||||||||
Net sales
|
$
|
56
|
|
|
$
|
84
|
|
|
(33
|
)%
|
|
$
|
128
|
|
|
$
|
167
|
|
|
(23
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Operating profit (loss)
|
$
|
(2
|
)
|
|
$
|
7
|
|
|
(129
|
)%
|
|
$
|
(1
|
)
|
|
$
|
12
|
|
|
(108
|
)%
|
Operating margin
|
(3.6
|
)%
|
|
8.3
|
%
|
|
|
|
(0.8
|
)%
|
|
7.2
|
%
|
|
|
|
Three months ended
June 30 |
|
Increase (decrease)
|
|
Six months ended
June 30 |
|
Increase (decrease)
|
||||||||||||||
|
2020
|
|
2019
|
|
|
2020
|
|
2019
|
|
||||||||||||
Amortization of intangible assets
|
$
|
88
|
|
|
$
|
94
|
|
|
(6
|
)%
|
|
$
|
175
|
|
|
$
|
187
|
|
|
(6
|
)%
|
Interest expense - net
|
38
|
|
|
50
|
|
|
(24
|
)%
|
|
72
|
|
|
110
|
|
|
(35
|
)%
|
||||
Pension and other postretirement benefits expense
|
12
|
|
|
2
|
|
|
500
|
%
|
|
20
|
|
|
2
|
|
|
900
|
%
|
||||
Restructuring program charges
|
187
|
|
|
—
|
|
|
NM
|
|
|
187
|
|
|
—
|
|
|
NM
|
|
||||
Other expense - net
|
196
|
|
|
104
|
|
|
88
|
%
|
|
204
|
|
|
195
|
|
|
5
|
%
|
||||
Total corporate expense
|
$
|
521
|
|
|
$
|
250
|
|
|
108
|
%
|
|
$
|
658
|
|
|
$
|
494
|
|
|
33
|
%
|
(a)
|
the consummation of any transaction permitted under the applicable indenture resulting in such guarantor ceasing to be a subsidiary, such as a sale to a third party;
|
(b)
|
such guarantee (so long as the guarantor is not obligated under any other U.S. debt obligations), becoming prohibited by any applicable law, rule or regulation or by any contractual obligation;
|
(c)
|
such guarantee resulting in material adverse tax consequences to Eaton or any of its subsidiaries (so long as the applicable guarantor is not obligated under any other U.S. debt obligation); or
|
(d)
|
such guarantor becoming a controlled foreign corporation within the meaning Section 957(a) of the Internal Revenue Code (a CFC), or an entity the material assets of which is limited to equity interests of a CFC.
|
|
|
June 30,
2020 |
|
December 31,
2019 |
||||
Current assets
|
|
$
|
3,714
|
|
|
$
|
4,082
|
|
Noncurrent assets
|
|
11,711
|
|
|
13,181
|
|
||
Current liabilities
|
|
3,017
|
|
|
2,703
|
|
||
Noncurrent liabilities
|
|
8,942
|
|
|
10,023
|
|
||
Amounts due to subsidiaries that are non-issuers and non-guarantors - net
|
|
20,701
|
|
|
37,050
|
|
||
|
|
|
|
|
||||
|
|
Six months ended
June 30 |
|
Year ended December 31
|
||||
|
|
2020
|
|
2019
|
||||
Net sales
|
|
$
|
5,028
|
|
|
$
|
12,961
|
|
Sales to subsidiaries that are non-issuers and non-guarantors
|
|
400
|
|
|
1,161
|
|
||
Cost of products sold
|
|
4,296
|
|
|
10,524
|
|
||
Expense from subsidiaries that are non-issuers and non-guarantors - net
|
|
290
|
|
|
734
|
|
||
Net loss
|
|
(578
|
)
|
|
(90
|
)
|
ITEM 3.
|
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.
|
ITEM 4.
|
CONTROLS AND PROCEDURES.
|
ITEM 1.
|
LEGAL PROCEEDINGS.
|
ITEM 1A.
|
RISK FACTORS.
|
ITEM 6.
|
EXHIBITS.
|
3 (i)
|
|
||
|
|
|
|
3 (ii)
|
|
||
|
|
|
|
4.1
|
|
||
|
|
|
|
4.2
|
|
||
|
|
|
|
4.3
|
|
||
|
|
|
|
4.4
|
|
||
|
|
|
|
4.5
|
|
||
|
|
|
|
4.6
|
|
||
|
|
|
|
4.7
|
|
||
|
|
|
|
4.8
|
|
Pursuant to Regulation S-K Item 601(b)(4), Eaton agrees to furnish to the SEC, upon request, a copy of the instruments defining the rights of holders of its long-term debt other than those set forth in Exhibits (4.2 - 4.7) hereto
|
|
|
|
|
|
22
|
|
||
|
|
|
|
31.1
|
|
||
|
|
|
|
31.2
|
|
||
|
|
|
|
32.1
|
|
||
|
|
|
|
32.2
|
|
||
|
|
|
|
101.INS
|
|
XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. *
|
|
|
|
|
|
101.SCH
|
|
XBRL Taxonomy Extension Schema Document *
|
|
|
|
|
|
101.CAL
|
|
XBRL Taxonomy Extension Calculation Linkbase Document *
|
|
|
|
|
|
101.DEF
|
|
XBRL Taxonomy Extension Label Definition Document *
|
|
|
|
|
|
101.LAB
|
|
XBRL Taxonomy Extension Label Linkbase Document *
|
|
|
|
|
|
101.PRE
|
|
XBRL Taxonomy Extension Presentation Linkbase Document *
|
|
|
|
|
|
104
|
|
Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101)
|
*
|
|
Submitted electronically herewith.
|
|
|
|
EATON CORPORATION plc
|
|
|
|
|
Registrant
|
|
|
|
|
|
|
Date:
|
July 29, 2020
|
By:
|
/s/ Richard H. Fearon
|
|
|
|
|
Richard H. Fearon
|
|
|
|
|
Principal Financial Officer
|
|
|
|
|
(On behalf of the registrant and as Principal Financial Officer)
|
1.
|
I have reviewed this quarterly report on Form 10-Q of Eaton Corporation plc;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
Date:
|
July 29, 2020
|
|
/s/ Craig Arnold
|
|
|
|
Craig Arnold
|
|
|
|
Principal Executive Officer
|
1.
|
I have reviewed this quarterly report on Form 10-Q of Eaton Corporation plc;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
Date:
|
July 29, 2020
|
|
/s/ Richard H. Fearon
|
|
|
|
Richard H. Fearon
|
|
|
|
Principal Financial Officer
|
Date:
|
July 29, 2020
|
|
/s/ Craig Arnold
|
|
|
|
Craig Arnold
|
|
|
|
Principal Executive Officer
|
Date:
|
July 29, 2020
|
|
/s/ Richard H. Fearon
|
|
|
|
Richard H. Fearon
|
|
|
|
Principal Financial Officer
|