v3.26.1
ACQUISITIONS AND DIVESTITURE OF BUSINESSES (Tables)
 6 Months Ended
Jun. 30, 2026
Business Combination, Asset Acquisition, Transaction between Entities under Common Control, and Joint Venture Formation [Abstract]  
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed The measurement period adjustments did not have a material impact to the Consolidated Statements of Income.
(In millions)Preliminary AllocationMeasurement Period AdjustmentsFinal Allocation
Accounts receivable $50 $(6)$44 
Inventory96 5 101 
Prepaid expenses and other current assets72 (5)67 
Property, plant and equipment104 13 117 
Other intangible assets709 6 715 
Other assets3 — 3 
Accounts payable(48)— (48)
Other current liabilities(106)26 (80)
Other noncurrent liabilities(2)(23)(25)
Total identifiable net assets878 16 894 
Goodwill572 (31)541 
Total consideration, net of cash received$1,450 $(15)$1,435 
The table below summarizes the preliminary estimated fair values of the assets acquired and liabilities assumed on the acquisition date. These preliminary estimates will continue to be revised during the measurement period as third-party valuations are updated and finalized, further information becomes available and additional analyses are performed. These differences could have a material impact on Eaton's preliminary purchase price allocation. The current measurement period adjustments did not have a material impact to the Consolidated Statements of Income.
(In millions)Preliminary AllocationMeasurement Period AdjustmentsAdjusted Preliminary Allocation
Accounts receivable $38 $— $38 
Inventory65 — 65 
Prepaid expenses and other current assets26 — 26 
Property, plant and equipment21 — 21 
Other intangible assets798 (7)791 
Other assets4 — 4 
Accounts payable(13)— (13)
Other current liabilities(77)— (77)
Other noncurrent liabilities(170)(5)(175)
Total identifiable net assets692 (12)680 
Goodwill837 12 849 
Total consideration, net of cash received$1,529 $— $1,529 
The acquisition of Boyd Thermal has been accounted for using the acquisition method of accounting which requires the assets acquired and liabilities assumed be recognized at their respective fair values on the acquisition date, as well as measurement period adjustments recorded as of June 30, 2026. The table below summarizes the preliminary estimated fair values of the assets acquired and liabilities assumed on the acquisition date. These preliminary estimates will continue to be revised during the measurement period as third-party valuations are updated and finalized, further information becomes available and additional analyses are performed. These differences could have a material impact on Eaton's preliminary purchase price allocation. The current measurement period adjustments did not have a material impact to the Consolidated Statements of Income.
(In millions)Preliminary AllocationMeasurement Period Adjustments
Adjusted Preliminary Allocation
Accounts receivable $365 $— $365 
Inventory238 (1)237 
Prepaid expenses and other current assets18 — 18 
Property, plant and equipment190 6 196 
Other intangible assets5,587 1,603 7,190 
Other assets43 — 43 
Accounts payable(307)— (307)
Other current liabilities(47)(12)(59)
Other noncurrent liabilities(1,439)(427)(1,866)
Total identifiable net assets4,648 1,169 5,817 
Goodwill4,901 (1,169)3,733 
Total consideration, net of cash received$9,549 $— $9,549 
Schedule of Expense Expense related to the awards is reported in the Consolidated Statements of Income as follows:
Three months ended
June 30		Six months ended
June 30
(In millions)2026202520262025
Cost of products sold$9 $34 $19 $34 
Selling and administrative expense5 11 7 11 
Other expense (income) - net13 2 13 2 
Total expense$27 $47 $39 $47