10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the quarterly period ended June 30, 2023

Commission file number 000-54863

EATON CORPORATION plc

(Exact name of registrant as specified in its charter)

Ireland				98-1059235
(State or other jurisdiction of incorporation or organization)				(IRS Employer Identification Number)
Eaton House,	30 Pembroke Road,	Dublin 4,	Ireland	D04 Y0C2
(Address of principal executive offices)				(Zip Code)

			+353	1637 2900
	(Registrant's telephone number, including area code)
	Not applicable
	(Former name, former address and former fiscal year if changed since last report)
Securities registered pursuant to Section 12(b) of the Act:
Title of each class		Trading Symbol		Name of each exchange on which registered
Ordinary shares ($0.01 par value)		ETN		New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☑ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes ☑ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer," “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act. (Check one):

Large Accelerated Filer	☑	Accelerated filer	☐	Non-accelerated filer	☐
Smaller reporting company	☐	Emerging growth company	☐	(Do not check if a smaller reporting company)

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange

Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☑

There were 399.0 million Ordinary Shares outstanding as of June 30, 2023.

TABLE OF CONTENTS
PART I — FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS	2
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	24
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	34
ITEM 4. CONTROLS AND PROCEDURES	35
PART II — OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS	35
ITEM 1A. RISK FACTORS	35
ITEM 2. UNRESTRICTED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS	35
ITEM 6. EXHIBITS	36
SIGNATURES	38

PART I — FINANCIAL INFORMATION

ITEM 1.FINANCIAL STATEMENTS.

EATON CORPORATION plc

CONSOLIDATED STATEMENTS OF INCOME

	Three months ended June 30				Six months ended June 30
(In millions except for per share data)	2023		2022		2023		2022
Net sales	$	5,866	$	5,212	$	11,349	$	10,054
Cost of products sold	3,747		3,505		7,346		6,774
Selling and administrative expense	986		828		1,890		1,618
Research and development expense	187		168		366		333
Interest expense - net	42		31		91		63
Gain on sale of business	—		—		—		24
Other expense (income) - net	7		(41)		(4)		(50)
Income before income taxes	898		720		1,660		1,339
Income tax expense	153		119		276		205
Net income	745		601		1,384		1,135
Less net income for noncontrolling interests	(1)		—		(3)		(1)
Net income attributable to Eaton ordinary shareholders	$	744	$	601	$	1,382	$	1,133
Net income per share attributable to Eaton ordinary shareholders
Diluted	$	1.86	$	1.50	$	3.45	$	2.82
Basic	1.86		1.51		3.47		2.84
Weighted-average number of ordinary shares outstanding
Diluted	400.7		400.7		400.6		401.2
Basic	398.9		399.0		398.7		399.1
Cash dividends declared per ordinary share	$	0.86	$	0.81	$	1.72	$	1.62

The accompanying notes are an integral part of these condensed consolidated financial statements.

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EATON CORPORATION plc

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

	Three months ended June 30				Six months ended June 30
(In millions)	2023		2022		2023		2022
Net income	$	745	$	601	$	1,384	$	1,135
Less net income for noncontrolling interests	(1)		—		(3)		(1)
Net income attributable to Eaton ordinary shareholders	744		601		1,382		1,133
Other comprehensive income (loss), net of tax
Currency translation and related hedging instruments	57		(470)		176		(533)
Pensions and other postretirement benefits	(2)		(41)		(5)		36
Cash flow hedges	(1)		68		14		169
Other comprehensive income (loss) attributable to Eaton    ordinary shareholders	53		(444)		185		(328)
Total comprehensive income attributable to Eaton   ordinary shareholders	$	797	$	157	$	1,567	$	805

The accompanying notes are an integral part of these condensed consolidated financial statements.

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EATON CORPORATION plc

CONSOLIDATED BALANCE SHEETS

(In millions)	June 30, 2023		December 31, 2022
Assets
Current assets
Cash	$	353	$	294
Short-term investments	977		261
Accounts receivable - net	4,399		4,076
Inventory	3,670		3,430
Prepaid expenses and other current assets	904		685
Total current assets	10,303		8,746
Property, plant and equipment
Land and buildings	2,198		2,129
Machinery and equipment	6,139		5,885
Gross property, plant and equipment	8,337		8,013
Accumulated depreciation	(5,071)		(4,867)
Net property, plant and equipment	3,267		3,146
Other noncurrent assets
Goodwill	14,914		14,796
Other intangible assets	5,285		5,485
Operating lease assets	594		570
Deferred income taxes	354		330
Other assets	2,056		1,940
Total assets	$	36,772	$	35,014
Liabilities and shareholders’ equity
Current liabilities
Short-term debt	$	94	$	324
Current portion of long-term debt	402		10
Accounts payable	3,192		3,072
Accrued compensation	465		467
Other current liabilities	2,571		2,488
Total current liabilities	6,725		6,360
Noncurrent liabilities
Long-term debt	8,804		8,321
Pension liabilities	642		649
Other postretirement benefits liabilities	173		177
Operating lease liabilities	482		459
Deferred income taxes	531		530
Other noncurrent liabilities	1,428		1,444
Total noncurrent liabilities	12,060		11,580
Shareholders’ equity
Ordinary shares (399.0 million outstanding in 2023 and 397.8 million in 2022)	4		4
Capital in excess of par value	12,554		12,512
Retained earnings	9,156		8,468
Accumulated other comprehensive loss	(3,760)		(3,946)
Shares held in trust	(1)		(1)
Total Eaton shareholders’ equity	17,953		17,038
Noncontrolling interests	36		38
Total equity	17,988		17,075
Total liabilities and equity	$	36,772	$	35,014

The accompanying notes are an integral part of these condensed consolidated financial statements.

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EATON CORPORATION plc

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

	Six months ended June 30
(In millions)	2023		2022
Operating activities
Net income	$	1,384	$	1,135
Adjustments to reconcile to net cash provided by operating activities
Depreciation and amortization	466		479
Deferred income taxes	(3)		(14)
Pension and other postretirement benefits expense	9		21
Contributions to pension plans	(51)		(55)
Contributions to other postretirement benefits plans	(10)		(12)
Gain on sale of business	—		(24)
Changes in working capital	(622)		(1,144)
Other - net	12		(5)
Net cash provided by operating activities	1,185		382
Investing activities
Capital expenditures for property, plant and equipment	(286)		(254)
Proceeds from sales of property, plant and equipment	—		92
Cash paid for acquisition of a business, net of cash acquired	—		(612)
Proceeds from (payments for) sale of business, net of cash sold	(1)		22
Investments in associate companies	(68)		(17)
Purchases of short-term investments - net	(719)		(4)
Proceeds from (payments for) settlement of currency exchange contracts not designated as hedges - net	42		(9)
Other - net	2		(41)
Net cash used in investing activities	(1,030)		(822)
Financing activities
Proceeds from borrowings	818		—
Payments on borrowings	(5)		(6)
Short-term debt, net	(225)		1,384
Cash dividends paid	(692)		(654)
Exercise of employee stock options	46		13
Repurchase of shares	—		(186)
Employee taxes paid from shares withheld	(47)		(58)
Other - net	(7)		(1)
Net cash provided by (used in) financing activities	(113)		492
Effect of currency on cash	16		15
Total increase in cash	59		66
Cash at the beginning of the period	294		297
Cash at the end of the period	$	353	$	364

The accompanying notes are an integral part of these condensed consolidated financial statements.

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EATON CORPORATION plc

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Amounts are in millions unless indicated otherwise (per share data assume dilution). Columns and rows may not add and the sum of components may not equal total amounts reported due to rounding.

Note 1.BASIS OF PRESENTATION

The accompanying unaudited condensed consolidated financial statements of Eaton Corporation plc (Eaton or the Company) have been prepared in accordance with generally accepted accounting principles for interim financial information, the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by United States generally accepted accounting principles (US GAAP) for complete financial statements. However, in the opinion of management, all adjustments (consisting of normal recurring accruals) have been made that are necessary for a fair presentation of the condensed consolidated financial statements for the interim periods.

This Form 10-Q should be read in conjunction with the consolidated financial statements and related notes included in Eaton’s 2022 Form 10-K. The interim period results are not necessarily indicative of the results to be expected for the full year. Management has evaluated subsequent events through the date this Form 10-Q was filed with the Securities and Exchange Commission.

Adoption of New Accounting Standard

Eaton adopted Accounting Standards Update 2022-04, Liabilities - Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations, in the first quarter of 2023. The standard requires disclosure of certain information about the Company's supply chain finance program, including key terms and a rollforward of confirmed amounts payable. The adoption of the standard did not have a material impact on the condensed consolidated financial statements.

Note 2.ACQUISITIONS AND DIVESTITURE OF BUSINESSES

Sale of Hydraulics business

On August 2, 2021, Eaton completed the sale of the Hydraulics business to Danfoss A/S and recognized a pre-tax gain of $617 million in 2021. The Company finalized negotiations of post-closing adjustments with Danfoss A/S and recognized an additional pre-tax gain of $24 million in the first quarter of 2022 and received cash of $22 million in the second quarter of 2022 from Danfoss A/S to fully settle all post-closing adjustments.

Acquisition of Royal Power Solutions

On January 5, 2022, Eaton acquired Royal Power Solutions for $610 million, net of cash received. Royal Power Solutions is a U.S. based manufacturer of high-precision electrical connectivity components used in electric vehicle, energy management, industrial and mobility markets. Royal Power Solutions is reported within the eMobility business segment.

Eaton's 2022 Condensed Consolidated Financial Statements include Royal Power Solutions' results of operations, including segment operating profit of $11 million on sales of $79 million, from the date of acquisition through June 30, 2022.

Russia

During the second quarter of 2022, in light of the ongoing war with Ukraine, the Company decided to exit its business operations in Russia and recorded charges of $29 million presented in Other expense (income) - net on the Consolidated Statements of Income. The charges consisted primarily of write-downs of accounts receivable, inventory and other assets, and accruals for severance.

Acquisition of a 50% stake in Jiangsu Huineng Electric Co., Ltd’s circuit breaker business

On July 1, 2022, Eaton acquired a 50 percent stake in Jiangsu Huineng Electric Co., Ltd’s circuit breaker business, which manufactures and markets low-voltage circuit breakers in China. Eaton accounts for this investment on the equity method of accounting and is reported within the Electrical Global business segment.

Acquisition of a 49% stake in Jiangsu Ryan Electrical Co. Ltd.

On April 23, 2023, Eaton acquired a 49 percent stake in Jiangsu Ryan Electrical Co. Ltd., a manufacturer of power distribution and sub-transmission transformers in China. Eaton accounts for this investment on the equity method of accounting and is reported within the Electrical Global business segment.

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Note 3.    REVENUE RECOGNITION

Sales are recognized when obligations under the terms of the contract are satisfied and control of promised goods or services have transferred to our customers. Control is transferred when the customer has the ability to direct the use of and obtain benefits from the goods or services. Sales are measured at the amount of consideration the Company expects to be paid in exchange for these products or services.

The following table provides disaggregated sales by lines of businesses, geographic destination, market channel or end market, as applicable, for the Company's operating segments:

	Three months ended June 30				Six months ended June 30
(In millions)	2023		2022		2023		2022
Electrical Americas
Products	$	757	$	695	$	1,473	$	1,298
Systems	1,781		1,436		3,359		2,724
Total	$	2,538	$	2,131	$	4,832	$	4,022
Electrical Global
Products	$	889	$	878	$	1,772	$	1,754
Systems	680		617		1,297		1,178
Total	$	1,569	$	1,495	$	3,069	$	2,932
Aerospace
Original Equipment Manufacturers	$	324	$	285	$	638	$	577
Aftermarket	297		242		561		463
Industrial and Other	226		215		451		419
Total	$	848	$	742	$	1,650	$	1,459
Vehicle
Commercial	$	459	$	445	$	907	$	847
Passenger and Light Duty	292		263		583		532
Total	$	751	$	708	$	1,490	$	1,379
eMobility	$	161	$	136	$	308	$	262
Total net sales	$	5,866	$	5,212	$	11,349	$	10,054

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The timing of revenue recognition, billings and cash collections results in billed accounts receivable, unbilled receivables (revenue recognized exceeds amount billed to the customer), and deferred revenue (advance payments and billings in excess of revenue recognized). Accounts receivable from customers were $3,876 million and $3,581 million at June 30, 2023 and December 31, 2022, respectively. Amounts are billed as work progresses in accordance with agreed-upon contractual terms, either at periodic intervals or upon achievement of contractual milestones. These assets and liabilities are reported on the Consolidated Balance Sheets on a contract-by-contract basis at the end of each reporting period. Unbilled receivables were $287 million and $233 million at June 30, 2023 and December 31, 2022, respectively, and are recorded in Prepaid expenses and other current assets. The increase in unbilled receivables reflects higher revenue recognized from increased business activity in 2023.

Changes in the deferred revenue liabilities are as follows:

(In millions)	Deferred Revenue
Balance at January 1, 2023	$	508
Customer deposits and billings	1,052
Revenue recognized in the period	(949)
Translation	9
Balance at June 30, 2023	$	620

(In millions)	Deferred Revenue
Balance at January 1, 2022	$	422
Customer deposits and billings	742
Revenue recognized in the period	(705)
Translation	(15)
Balance at June 30, 2022	$	444

Deferred revenue liabilities of $604 million and $489 million as of June 30, 2023 and December 31, 2022, respectively, were included in Other current liabilities with the remaining balance presented in Other noncurrent liabilities.

A significant portion of open orders placed with Eaton are by original equipment manufacturers or distributors. These open orders are not considered firm as they have been historically subject to releases by customers. In measuring backlog of unsatisfied or partially satisfied obligations, only the amount of orders to which customers are firmly committed are included. Using this criterion, total backlog at June 30, 2023 was approximately $12.5 billion. At June 30, 2023, approximately 82% of this backlog is targeted for delivery to customers in the next twelve months and the rest thereafter.

Note 4. CREDIT LOSSES FOR RECEIVABLES

Receivables are exposed to credit risk based on the customers’ ability to pay which is influenced by, among other factors, their financial liquidity position. Eaton’s receivables are generally short-term in nature with a majority outstanding less than 90 days.

Eaton performs ongoing credit evaluation of its customers and maintains sufficient allowances for potential credit losses. The Company evaluates the collectability of its receivables based on the length of time the receivable is past due, and any anticipated future write-off based on historic experience adjusted for market conditions. The Company's segments, supported by our global credit department, perform the credit evaluation and monitoring process to estimate and manage credit risk. The process includes an evaluation of credit losses for both the overall segment receivable and specific customer balances. The process also includes review of customer financial information and credit ratings, approval and monitoring of customer credit limits, and an assessment of market conditions. The Company may also require prepayment from customers to mitigate credit risk. Receivable balances are written off against an allowance for credit losses after a final determination of collectability has been made.

Accounts receivable are net of an allowance for credit losses of $39 million and $31 million at June 30, 2023 and December 31, 2022, respectively. The change in the allowance for credit losses includes expense and net write-offs, none of which are significant.

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Note 5.    INVENTORY

Inventory is carried at lower of cost or net realizable value. The components of inventory are as follows:

(In millions)	June 30, 2023		December 31, 2022
Raw materials	$	1,458	$	1,275
Work-in-process	930		781
Finished goods	1,282		1,375
Total inventory	$	3,670	$	3,430

Note 6.    GOODWILL

Changes in the carrying amount of goodwill by segment are as follows:

(In millions)	January 1, 2023		Translation		June 30, 2023
Electrical Americas	$	7,402	$	11	$	7,413
Electrical Global	3,929		59		3,988
Aerospace	2,844		47		2,891
Vehicle	287		1		289
eMobility	334		—		334
Total	$	14,796	$	118	$	14,914

Note 7.    SUPPLY CHAIN FINANCE PROGRAM

The Company negotiates payment terms directly with its suppliers for the purchase of goods and services. In addition, a third-party financial institution offers a voluntary supply chain finance (SCF) program that enables certain of the Company’s suppliers, at the supplier’s sole discretion, to sell receivables due from the Company to the financial institution on terms directly negotiated with the financial institution. If a supplier elects to participate in the SCF program, the supplier decides which invoices are sold to the financial institution and the Company has no economic interest in a supplier’s decision to sell an invoice. Payments by the Company to participating suppliers are paid to the financial institution on the invoice due date, regardless of whether an individual invoice is sold by the supplier to the financial institution. The amounts due to the financial institution for suppliers that participate in the SCF program are included in Accounts payable on the Consolidated Balance Sheets, and the associated payments are included in operating activities on the Condensed Consolidated Statements of Cash Flows.

The changes in SCF obligations are as follows:

(In millions)	SCF Obligations
Balance at January 1, 2023	$	208
Invoices confirmed during the period	634
Invoices paid during the period	(519)
Translation	13
Balance at June 30, 2023	$	336

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Note 8.    DEBT

On May 18, 2023, Eaton issued senior notes (2023 Notes) with a face amount of $500 million. The 2023 Notes mature in 2028 with interest payable semi-annually at a rate of 4.35% per annum. The issuer received proceeds totaling $497 million from the issuance, net of financing costs. The 2023 Notes are fully and unconditionally guaranteed on an unsubordinated, unsecured basis by Eaton and certain of its direct and indirect subsidiaries. The 2023 Notes contain customary optional redemption and par call provisions. The 2023 Notes also contain a provision which upon a change of control requires the Company to make an offer to purchase all or any part of the 2023 Notes at a purchase price of 101% of the principal amount plus accrued and unpaid interest. The 2023 Notes are subject to customary non-financial covenants.

On March 3, 2023, a subsidiary of Eaton issued Euro denominated notes (2023 Euro Notes) in a private issuance with a face value of €300 million ($318 million). The floating rate notes are due June 3, 2024 with interest payable quarterly based on the three-month Euro Interbank Offered Rate plus 25 basis points. The 2023 Euro Notes are fully and unconditionally guaranteed on an unsubordinated, unsecured basis by Eaton. The 2023 Euro Notes contain a change of control provision which requires the Company to make an offer to purchase all or any part of the 2023 Euro Notes at a purchase price of 100.5% of the principal amount plus accrued and unpaid interest. The 2023 Euro Notes are subject to customary non-financial covenants.

Note 9.    RETIREMENT BENEFITS PLANS

The components of retirement benefits expense (income) are as follows:

	United States pension benefit expense (income)				Non-United States pension benefit expense (income)				Other postretirement benefits expense (income)
	Three months ended June 30
(In millions)	2023		2022		2023		2022		2023		2022
Service cost	$	5	$	8	$	10	$	14	$	—	$	1
Interest cost	35		28		21		12		3		1
Expected return on plan assets	(49)		(52)		(30)		(29)		—		—
Amortization	1		4		3		12		(5)		(2)
	(8)		(12)		4		9		(2)		—
Settlements	10		17		—		1		—		—
Total expense (income)	$	2	$	5	$	4	$	10	$	(2)	$	—
	United States pension benefit expense (income)				Non-United States pension benefit expense (income)				Other postretirement benefits expense (income)
	Six months ended June 30
(In millions)	2023		2022		2023		2022		2023		2022
Service cost	$	10	$	16	$	21	$	30	$	—	$	1
Interest cost	71		48		42		24		5		3
Expected return on plan assets	(98)		(105)		(60)		(60)		—		—
Amortization	2		12		4		24		(9)		(4)
	(15)		(29)		7		18		(3)		—
Settlements	19		31		1		1		—		—
Total expense (income)	$	4	$	2	$	8	$	19	$	(3)	$	—

The components of retirement benefits expense (income) other than service costs are included in Other expense (income) - net.

During 2020, the Company announced it was freezing its United States pension plans for its non-union employees. The freeze was effective January 1, 2021 for non-union U.S. employees whose retirement benefit was determined under a cash balance formula and is effective January 1, 2026 for non-union U.S. employees whose retirement benefit is determined under a final average pay formula.

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During the second quarter and first six months of 2023, the Company recognized settlement losses from lump-sum distributions of $10 million and $20 million, respectively. During the second quarter and first six months of 2022, the Company recognized settlement losses from lump-sum distributions of $18 million and $32 million, respectively. During the second quarter and first six months of 2022, the Company remeasured certain pension plans as a result of lump-sum distributions exceeding or expected to exceed the sum of service and interest costs for the year. These remeasurements resulted in a decrease of $137 million and $90 million in funded status and corresponding increase in Accumulated other comprehensive loss in the second quarter and first six months of 2022, respectively.

Note 10.     LEGAL CONTINGENCIES

Eaton is subject to a broad range of claims, administrative and legal proceedings such as lawsuits that relate to contractual allegations and indemnity claims, tax audits, patent infringement, personal injuries, antitrust matters, and employment-related matters. Eaton is also subject to legal claims from historic products which may have contained asbestos. Insurance may cover some of the costs associated with these claims and proceedings. Although it is not possible to predict with certainty the outcome or cost of these matters, the Company believes they will not have a material adverse effect on the Condensed Consolidated Financial Statements.

Note 11.     INCOME TAXES

The effective income tax rate for the second quarter of 2023 was expense of 17.0% compared to expense of 16.5% for the second quarter of 2022. The effective income tax rate for the first six months of 2023 was expense of 16.6% compared to expense of 15.3% for the first six months of 2022. The increase in the effective tax rate in the second quarter and first six months of 2023 was primarily due to greater levels of income in higher tax jurisdictions.

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Note 12. 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
Net income	—	—		—		744		—		—		744		1		745
Other comprehensive income, net of tax								53				53				53
Cash dividends paid	—	—		—		(344)		—		—		(344)		—		(344)
Issuance of shares under equity-based    compensation plans	0.4	—		52		(1)		—		(1)		51		—		51
Changes in noncontrolling interest of    consolidated subsidiaries - net	—	—		—		—		—		—		—		(1)		(1)
Balance at June 30, 2023	399.0	$	4	$	12,554	$	9,156	$	(3,760)	$	(1)	$	17,953	$	36	$	17,988

	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
Net income	—	—		—		601		—		—		601		—		601
Other comprehensive loss, net of tax								(444)				(444)				(444)
Cash dividends paid	—	—		—		(323)		—		—		(323)		—		(323)
Issuance of shares under equity-based    compensation plans	—	—		26		1		—		—		27		—		27
Changes in noncontrolling interest of    consolidated subsidiaries - net	—	—		(1)		—		—		—		(1)		—		(1)
Repurchase of shares	(0.7)	—		—		(100)		—		—		(100)		—		(100)
Balance at June 30, 2022	398.3	$	4	$	12,452	$	7,886	$	(3,961)	$	(1)	$	16,380	$	36	$	16,416

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 and six months ended June 30, 2023, no ordinary shares were repurchased. During the three and six months ended June 30, 2022, 0.7 million and 1.3 million ordinary shares, respectively, were repurchased under the 2022 program in the open market at a total cost of $100 million and $186 million, respectively.

12

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	182		(19)		39		201
Amounts reclassified from Accumulated other    comprehensive loss (income)	(6)		15		(26)		(16)
Net current-period Other comprehensive    income (loss)	176		(5)		14		185
Balance at June 30, 2023	$	(3,088)	$	(815)	$	143	$	(3,760)

The reclassifications out of Accumulated other comprehensive loss are as follows:

(In millions)	Six months ended June 30, 2023			Consolidated Statements of Income classification
Gains and (losses) on net investment hedges (amount excluded   from effectiveness testing)
Currency exchange contracts	$	6		Interest expense - net
Tax expense	—
Total, net of tax	6
Amortization of defined benefits pensions and other   postretirement benefits items
Actuarial loss and prior service cost	(17)		1
Tax benefit	2
Total, net of tax	(15)
Gains and (losses) on cash flow hedges
Floating-to-fixed interest rate swaps	6			Interest expense - net
Currency exchange contracts	26			Net sales and Cost of products sold
Tax expense	(7)
Total, net of tax	26
Total reclassifications for the period	$	16

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.

13

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 June 30				Six months ended June 30
(In millions except for per share data)	2023		2022		2023		2022
Net income attributable to Eaton ordinary shareholders	$	744	$	601	$	1,382	$	1,133
Weighted-average number of ordinary shares outstanding - diluted	400.7		400.7		400.6		401.2
Less dilutive effect of equity-based compensation	1.8		1.7		1.9		2.1
Weighted-average number of ordinary shares outstanding - basic	398.9		399.0		398.7		399.1
Net income per share attributable to Eaton ordinary shareholders
Diluted	$	1.86	$	1.50	$	3.45	$	2.82
Basic	1.86		1.51		3.47		2.84

For the second quarter and first six months of 2023, 0.1 million 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. For the second quarter and first six months of 2022, all stock options were included in the calculation of diluted net income per share attributable to Eaton ordinary shareholders because they were all dilutive.

Note 13.     FAIR VALUE MEASUREMENTS

Fair value is measured based on an exit price, representing the amount that would be received to sell an asset or paid to satisfy a liability in an orderly transaction between market participants. Fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions, a fair value hierarchy is established, which categorizes the inputs used in measuring fair value as follows: (Level 1) observable inputs such as quoted prices in active markets; (Level 2) inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and (Level 3) unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions.

A summary of financial instruments and contingent consideration recognized at fair value, and the fair value measurements used, is as follows:

(In millions)	Total		Level 1		Level 2		Level 3
June 30, 2023
Cash	$	353	$	353	$	—	$	—
Short-term investments	977		977		—		—
Net derivative contracts	46		—		46		—
Contingent future payments from acquisition of Green Motion	(46)		—		—		(46)
December 31, 2022
Cash	$	294	$	294	$	—	$	—
Short-term investments	261		261		—		—
Net derivative contracts	29		—		29		—
Contingent future payments from acquisition of Green Motion	(44)		—		—		(44)

Eaton values its financial instruments using an industry standard market approach, in which prices and other relevant information is generated by market transactions involving identical or comparable assets or liabilities.

14

On March 22, 2021, Eaton acquired Green Motion SA, a leading designer and manufacturer of electric vehicle charging hardware and related software based in Switzerland. Green Motion SA was acquired for $106 million, including $49 million of cash paid at closing and an initial estimate of $57 million for the fair value of contingent future consideration based on 2023 and 2024 revenue performance. The fair value of contingent consideration liabilities is estimated by discounting contingent payments expected to be made, and may increase or decrease based on changes in revenue estimates and discount rates, with a maximum possible undiscounted value of $114 million. As of June 30, 2023, the fair value of the contingent future payments has been reduced to $46 million based primarily on anticipated reductions in projected 2023 revenue compared to the initial estimate.

Other Fair Value Measurements

Long-term debt and the current portion of long-term debt had a carrying value of $9,206 million and fair value of $8,622 million at June 30, 2023 compared to $8,331 million and $7,625 million, respectively, at December 31, 2022. The fair value of Eaton's debt instruments was estimated using prevailing market interest rates on debt with similar creditworthiness, terms and maturities and is considered a Level 2 fair value measurement.

Note 14.     DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES

In the normal course of business, Eaton is exposed to certain risks related to fluctuations in interest rates, currency exchange rates and commodity prices. The Company uses various derivative and non-derivative financial instruments, primarily interest rate swaps, currency forward exchange contracts, currency swaps and commodity contracts to manage risks from these market fluctuations. The instruments used by Eaton are straightforward, non-leveraged instruments. The counterparties to these instruments are financial institutions with strong credit ratings. Eaton maintains control over the size of positions entered into with any one counterparty and regularly monitors the credit rating of these institutions. Such instruments are not purchased and sold for trading purposes.

Derivative financial instruments are accounted for at fair value and recognized as assets or liabilities in the Consolidated Balance Sheets. Accounting for the gain or loss resulting from the change in the fair value of the derivative financial instrument depends on whether it has been designated as part of a hedging relationship, is effective and the nature of the hedging activity. Eaton formally documents all relationships between derivative financial instruments accounted for as designated hedges and the hedged item, as well as its risk-management objective and strategy for undertaking the hedge transaction. This process includes linking derivative financial instruments to a recognized asset or liability, specific firm commitment, forecasted transaction, or net investment in a foreign operation. These financial instruments can be designated as:

•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.

The gain or loss from a derivative financial instrument designated as a hedge is classified in the same line of the Consolidated Statements of Income as the offsetting loss or gain on the hedged item. The cash flows resulting from these financial instruments are classified in operating activities on the Condensed Consolidated Statements of Cash Flows.

For derivatives that are not designated as a hedge, any gain or loss is immediately recognized in income. The majority of derivatives used in this manner relate to risks resulting from assets or liabilities denominated in a foreign currency and certain commodity contracts that arise in the normal course of business.

15

Eaton uses currency exchange contracts and certain of its debt denominated in foreign currency to hedge portions of its net investments in foreign operations against foreign currency exposure (net investment hedges). The Company uses the spot rate method to assess hedge effectiveness when currency exchange contracts are used in net investment hedges. Under this method, changes in the spot exchange rate are recognized in Accumulated other comprehensive loss. Changes related to the forward rate are excluded from the hedging relationship and the forward points are amortized to Interest expense - net on a straight-line basis over the term of the contract. The cash flows resulting from these currency exchange contracts are classified in investing activities on the Condensed Consolidated Statements of Cash Flows.

Derivative Financial Statement Impacts

The fair value of derivative financial instruments recognized in the Consolidated Balance Sheets is as follows:

(In millions)	Notional amount		Other  current assets		Other noncurrent assets		Other current liabilities		Other noncurrent liabilities		Type of hedge	Term
June 30, 2023
Derivatives designated as hedges
Currency exchange contracts	$	990	$	52	$	2	$	16	$	3	Cash flow	1 to 31 months
Commodity contracts	27		1		—		1		—		Cash flow	1 to 12 months
Currency exchange contracts	557		3		—		—		—		Net investment	3 months
Total			$	55	$	2	$	17	$	3
Derivatives not designated as hedges
Currency exchange contracts	$	4,891	$	19			$	10				1 to 7 months
December 31, 2022
Derivatives designated as hedges
Currency exchange contracts	$	1,240	$	35	$	2	$	17	$	9	Cash flow	1 to 36 months
Commodity contracts	64		4		—		2		—		Cash flow	1 to 12 months
Total			$	39	$	2	$	19	$	9
Derivatives not designated as hedges
Currency exchange contracts	$	4,683	$	30			$	14				1 to 12 months

The currency exchange contracts shown in the table above as derivatives not designated as hedges are primarily contracts entered into to manage currency volatility or exposure on intercompany receivables, payables and loans. While Eaton does not elect hedge accounting treatment for these derivatives, Eaton targets managing 100% of the intercompany balance sheet exposure to minimize the effect of currency volatility related to the movement of goods and services in the normal course of its operations. This activity represents the great majority of these currency exchange contracts. The cash flows resulting from the settlement of these derivatives have been classified in investing activities in the Condensed Consolidated Statements of Cash Flows.

Foreign currency denominated debt designated as non-derivative net investment hedging instruments had a carrying value on an after-tax basis of $3,092 million at June 30, 2023 and $2,711 million at December 31, 2022.

As of June 30, 2023, the volume of outstanding commodity contracts that were entered into to hedge forecasted transactions:

Commodity	June 30, 2023		Term
Aluminum	4	Millions of pounds	1 to 11 months
Copper	3	Millions of pounds	1 to 7 months
Gold	1,587	Troy ounces	1 to 12 months
Silver	289,724	Troy ounces	1 to 7 months

16

The following amounts were recorded on the Consolidated Balance Sheets related to fixed-to-floating interest rate swaps:

(In millions)	Carrying amount of the hedged assets (liabilities)				Cumulative amount of fair value hedging adjustment included in the carrying amount of the hedged asset (liabilities) (a)
Location on Consolidated Balance Sheets	June 30, 2023		December 31, 2022		June 30, 2023		December 31, 2022
Long-term debt	$	(713)	$	(713)	$	(45)	$	(48)

(a) At June 30, 2023 and December 31, 2022, these amounts include the cumulative liability amount of fair value hedging adjustments remaining for which the hedge accounting has been discontinued of $45 million and $48 million, respectively.

The impact of cash flow and fair value hedging activities to the Consolidated Statements of Income is as follows:

	Three months ended June 30, 2023
(In millions)	Net Sales		Cost of products sold		Interest expense - net
Amounts from Consolidated Statements of Income	$	5,866	$	3,747	$	42
Gain (loss) on derivatives designated as cash flow hedges
Forward starting floating-to-fixed interest rate swaps
Hedged item	$	—	$	—	$	(3)
Derivative designated as hedging instrument	—		—		3
Currency exchange contracts
Hedged item	$	(1)	$	(15)	$	—
Derivative designated as hedging instrument	1		15		—

	Three months ended June 30, 2022
(In millions)	Net Sales		Cost of products sold		Interest expense - net
Amounts from Consolidated Statements of Income	$	5,212	$	3,505	$	31
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	$	—	$	(1)	$	—
Derivative designated as hedging instrument	—		1		—

17

	Six months ended June 30, 2023
(In millions)	Net sales		Cost of products sold		Interest expense - net
Amounts from Consolidated Statements of Income	$	11,349	$	7,346	$	91
Gain (loss) on derivatives designated as cash flow hedges
Forward starting floating-to-fixed interest rate swaps
Hedged item	$	—	$	—	$	(6)
Derivative designated as hedging instrument	—		—		6
Currency exchange contracts
Hedged item	$	1	$	(30)	$	—
Derivative designated as hedging instrument	(1)		30		—

	Six months ended June 30, 2022
(In millions)	Net sales		Cost of products sold		Interest expense - net
Amounts from Consolidated Statements of Income	$	10,054	$	6,774	$	63
Gain (loss) on derivatives designated as cash flow hedges
Currency exchange contracts
Hedged item	$	4	$	(7)	$	—
Derivative designated as hedging instrument	(4)		7		—
Commodity contracts
Hedged item	$	—	$	(2)	$	—
Derivative designated as hedging instrument	—		2		—
Gain (loss) on derivatives designated as fair value hedges
Fixed-to-floating interest rate swaps
Hedged item	$	—	$	—	$	8
Derivative designated as hedging instrument	—		—		(8)

18

The impact of derivatives not designated as hedges to the Consolidated Statements of Income is as follows:

	Gain (loss) recognized in Consolidated Statements of Income				Consolidated Statements of Income classification
	Three months ended June 30
(In millions)	2023		2022
Gain (loss) on derivatives not designated as hedges
Currency exchange contracts	$	6	$	(25)	Interest expense - net
Commodity contracts	—		(16)		Other expense (income) - net
Total	$	6	$	(41)

	Gain (loss) recognized in Consolidated Statements of Income				Consolidated Statements of Income classification
	Six months ended June 30
(In millions)	2023		2022
Gain (loss) on derivatives not designated as hedges
Currency exchange contracts	$	17	$	(33)	Interest expense - net
Commodity contracts	—		(15)		Other expense (income) - net and Cost of products sold (a)
Total	$	17	$	(48)

(a) In the second quarter of 2022, Eaton changed the presentation of gains and losses associated with derivative contracts for commodities that are not designated as hedges from Cost of products sold to Other expense (income) - net on the Consolidated Statements of Income. Prior period amounts have not been reclassified as they are not material.

19

The impact of derivative and non-derivative instruments designated as hedges to the Consolidated Statements of Income and Comprehensive Income is as follows:

	Gain (loss) recognized in other comprehensive income (loss)				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
(In millions)	2023		2022			2023		2022
Derivatives designated as    cash flow hedges
Forward starting floating-to-fixed  interest rate swaps	$	1	$	113	Interest expense - net	$	3	$	—
Currency exchange contracts	18		(10)		Net sales and Cost of products sold	15		4
Commodity contracts	(2)		(12)		Cost of products sold	—		1
Derivatives designated as net    investment hedges
Currency exchange contracts
Effective portion	32		—		Gain (loss) on sale of business	—		—
Amount excluded from effectiveness       testing	4		—		Interest expense - net	4		—
Non-derivative designated as net    investment hedges
Foreign currency denominated debt	(3)		179		Gain (loss) on sale of business	—		—
Total	$	50	$	270		$	22	$	5

20

	Gain (loss) recognized in other comprehensive income (loss)				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
(In millions)	2023		2022			2023		2022
Derivatives designated as cash    flow hedges
Forward starting floating-to-fixed    interest rate swaps	$	1	$	237	Interest expense - net	$	6	$	—
Currency exchange contracts	49		(10)		Net sales and Cost of products sold	26		4
Commodity contracts	—		(7)		Cost of products sold	—		2
Derivatives designated as net    investment hedges
Currency exchange contracts
Effective portion	18		—		Gain (loss) on sale of business	—		—
Amount excluded from effectiveness       testing	9		—		Interest expense - net	6		—
Non-derivative designated as net    investment hedges
Foreign currency denominated debt	(66)		241		Gain (loss) on sale of business	—		—
Total	$	11	$	461		$	38	$	6

The pre-tax portion of the fair value of currency exchange contracts designated as net investment hedges included in Accumulated other comprehensive loss were net gains of $18 million at June 30, 2023. The pre-tax portion of the fair value of the forward points included in Accumulated other comprehensive loss were net gains of $9 million at June 30, 2023.

At June 30, 2023, a gain of $36 million of estimated unrealized net gains or losses associated with our cash flow hedges were expected to be reclassified to income from Accumulated other comprehensive loss within the next twelve months. These reclassifications relate to our designated foreign currency and commodity hedges that will mature in the next 12 months.

21

Note 15.     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 has incurred charges of $364 million. These restructuring activities are expected to be completed in 2023 with total estimated charges of $380 million cumulatively for the entire program. The remaining charges in 2023 are expected to relate primarily to plant closing and other costs.

A summary of restructuring program charges is as follows:

	Three months ended June 30				Six months ended June 30
(In millions except for per share data)	2023		2022		2023		2022
Workforce reductions	$	15	$	2	$	17	$	7
Plant closing and other	15		8		22		21
Total before income taxes	29		10		39		28
Income tax benefit	6		2		8		6
Total after income taxes	$	24	$	8	$	31	$	22
Per ordinary share - diluted	$	0.06	$	0.02	$	0.08	$	0.05

Restructuring program charges related to the following segments:

	Three months ended June 30				Six months ended June 30
(In millions)	2023		2022		2023		2022
Electrical Americas	$	1	$	5	$	3	$	10
Electrical Global	14		1		18		6
Aerospace	2		2		3		5
Vehicle	1		3		3		6
eMobility	6		—		7		—
Corporate	5		—		6		2
Total	$	29	$	10	$	39	$	28

A summary of liabilities related to workforce reductions, plant closing and other associated costs is as follows:

(In millions)	Workforce reductions		Plant closing and other		Total
Balance at January 1, 2020	$	—	$	—	$	—
Liability recognized	172		42		214
Payments, utilization and translation	(33)		(39)		(72)
Balance at December 31, 2020	139		3		142
Liability recognized	21		57		78
Payments, utilization and translation	(64)		(52)		(116)
Balance at December 31, 2021	96		8		104
Liability recognized, net1	(13)		47		33
Payments, utilization and translation	(45)		(51)		(96)
Balance at December 31, 2022	38		4		41
Liability recognized, net	17		22		39
Payments	(10)		(20)		(30)
Balance at June 30, 2023	$	45	$	6	$	51

1The restructuring program liability was adjusted by $30 million in 2022 related to true-ups for completed workforce reductions and the decision not to close a facility in the Vehicle segment that was previously included in the program.

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 16 for additional information about business segments.

22

Note 16.     BUSINESS SEGMENT INFORMATION

Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated on a regular basis by the chief operating decision maker, or decision making group, in deciding how to allocate resources to an individual segment and in assessing performance. Eaton's operating segments are Electrical Americas, Electrical Global, Aerospace, Vehicle, and eMobility. Operating profit includes the operating profit from intersegment sales. For additional information regarding Eaton's business segments, see Note 17 to the Consolidated Financial Statements contained in the 2022 Form 10-K.

	Three months ended June 30				Six months ended June 30
(In millions)	2023		2022		2023		2022
Net sales
Electrical Americas	$	2,538	$	2,131	$	4,832	$	4,022
Electrical Global	1,569		1,495		3,069		2,932
Aerospace	848		742		1,650		1,459
Vehicle	751		708		1,490		1,379
eMobility	161		136		308		262
Total net sales	$	5,866	$	5,212	$	11,349	$	10,054
Segment operating profit (loss)
Electrical Americas	$	669	$	495	$	1,194	$	857
Electrical Global	290		282		564		561
Aerospace	191		163		371		321
Vehicle	115		108		222		221
eMobility	(1)		(2)		(5)		(5)
Total segment operating profit	1,264		1,046		2,346		1,955
Corporate
Intangible asset amortization expense	(113)		(122)		(237)		(250)
Interest expense - net	(42)		(31)		(91)		(63)
Pension and other postretirement benefits income	11		9		22		28
Restructuring program charges	(29)		(10)		(39)		(28)
Other expense - net	(192)		(171)		(340)		(302)
Income before income taxes	898		720		1,660		1,339
Income tax expense	153		119		276		205
Net income	745		601		1,384		1,135
Less net income for noncontrolling interests	(1)		—		(3)		(1)
Net income attributable to Eaton ordinary shareholders	$	744	$	601	$	1,382	$	1,133

23

ITEM 2.MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.

Amounts are in millions of dollars or shares unless indicated otherwise (per share data assume dilution). Columns and rows may not add and the sum of components may not equal total amounts reported due to rounding.

COMPANY OVERVIEW

Eaton Corporation plc (Eaton or the Company) is a global intelligent power management company dedicated to improving the quality of life and protecting the environment for people everywhere. We are guided by our commitment to do business right, to operate sustainably and to help our customers manage power – today and well into the future. We're committed to accelerating the planet's transition to renewable energy, helping to solve the world's most urgent power management challenges, and doing what's best for our stakeholders and all of society.

At Eaton, we are well-positioned to capitalize on the megatrends of electrification, energy transition and digitalization. The reindustrialization of North America and Europe, in conjunction with emerging megaprojects, and increased global infrastructure spending with a focus on clean energy programs, are positioning Eaton for growth for years to come. We are strengthening our participation across the entire electrical power value chain and benefiting from momentum in the data center and utility end markets as well as the growth cycle in the commercial aerospace and defense markets.

Over the past several years, we've completed a number of transactions to add higher-growth, higher-margin businesses to our portfolio. These updates have better aligned the Company with secular growth trends and also positioned the Company for future growth. This transformation of our portfolio of businesses, along with double-digit organic sales growth and operational performance, has led to 24% growth in our net income per share in the second quarter of 2023 compared to the second quarter of 2022.

Founded in 1911, 2023 marks Eaton's 100th anniversary of being listed on the New York Stock Exchange. We reported revenues of $20.8 billion in 2022 and serve customers in more than 170 countries.

Portfolio Changes

The Company continues to actively manage its portfolio of businesses to deliver on its strategic objectives. The Company is focused on deploying its capital toward businesses that provide opportunities for above-market growth, strong returns, and align with secular trends and its power management strategies. During 2022 and 2023, Eaton continued to selectively add businesses to strengthen its portfolio.

Acquisitions of businesses and investments in associate companies	Date of acquisition	Business segment
Royal Power Solutions	January 5, 2022	eMobility
A manufacturer of high-precision electrical connectivity components used in electric vehicle, energy management, industrial and mobility markets.
Jiangsu Huineng Electric Co., Ltd’s circuit breaker business	July 1, 2022	Electrical Global
A 50 percent stake in Jiangsu Huineng Electric Co., Ltd's circuit breaker business which manufactures and markets low-voltage circuit breakers in China.
Jiangsu Ryan Electrical Co. Ltd.	April 23, 2023	Electrical Global
A 49 percent stake in Jiangsu Ryan Electrical Co. Ltd., a manufacturer of power distribution and sub-transmission transformers in China.

Additional information related to acquisitions and divestiture of businesses is presented in Note 2.

24

RESULTS OF OPERATIONS

Non-GAAP Financial Measures

The following discussion of Consolidated Financial Results includes certain non-GAAP financial measures. These financial measures include adjusted earnings and adjusted earnings per ordinary share, each of which differs from the most directly comparable measure calculated in accordance with generally accepted accounting principles (GAAP). A reconciliation of adjusted earnings and adjusted earnings per ordinary share to the most directly comparable GAAP measure is included in the Consolidated Financial Results table below. Management believes that these financial measures are useful to investors because they provide additional meaningful financial information that should be considered when assessing our business performance and trends, and they allow investors to more easily compare Eaton’s financial performance period to period. Management uses this information in monitoring and evaluating the on-going performance of Eaton.

Acquisition and Divestiture Charges

Eaton incurs integration charges and transaction costs to acquire and integrate businesses, and transaction, separation and other costs to divest and exit businesses. Eaton also recognizes gains and losses on the sale of businesses. A summary of these Corporate items is as follows:

	Three months ended June 30				Six months ended June 30
(In millions except for per share data)	2023		2022		2023		2022
Acquisition integration, divestiture charges and transaction costs	$	38	$	51	$	51	$	79
Gain on the sale of the Hydraulics business	—		—		—		(24)
Total before income taxes	38		51		51		55
Income tax benefit	7		7		10		8
Total after income taxes	$	30	$	44	$	41	$	47
Per ordinary share - diluted	$	0.08	$	0.11	$	0.10	$	0.12

Acquisition integration, divestiture charges and transaction costs in 2023 and 2022 are related to the acquisition of Royal Power Solutions and other acquisitions completed prior to 2022, including other charges and income to acquire and exit businesses. Costs in 2023 also included certain indemnity claims associated with the sale of 50% interest in the commercial vehicle automated transmission business in 2017. Costs in 2022 also included charges of $29 million presented in Other expense (income) - net on the Consolidated Statements of Income related to the decision in the second quarter of 2022 to exit the Company's business operations in Russia. These charges consisted primarily of write-downs of accounts receivable, inventory and other assets, and accruals for severance. These charges were included in Cost of products sold, Selling and administrative expense, Research and development expense, or Other expense (income) - net. In Business Segment Information in Note 16, the charges were included in Other expense - net.

Restructuring

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 has incurred charges of $364 million. These restructuring activities are expected to be completed in 2023 with total estimated charges of $380 million cumulatively for the entire program and projected mature year savings of $265 million when fully implemented. The remaining charges in 2023 are expected to relate primarily to plant closing and other costs. Additional information related to this restructuring is presented in Note 15.

Intangible Asset Amortization Expense

Intangible asset amortization expense is as follows:

	Three months ended June 30				Six months ended June 30
(In millions except for per share data)	2023		2022		2023		2022
Intangible asset amortization expense	$	113	$	122	$	237	$	250
Income tax benefit	24		23		51		52
Total after income taxes	$	88	$	99	$	186	$	198
Per ordinary share - diluted	$	0.21	$	0.24	$	0.46	$	0.50

25

Consolidated Financial Results

	Three months ended June 30						Increase (decrease)		Six months ended June 30						Increase (decrease)
(In millions except for per share data)	2023			2022					2023			2022
Net sales	$	5,866		$	5,212		13	%	$	11,349		$	10,054		13	%
Gross profit	2,119			1,706			24	%	4,003			3,280			22	%
Percent of net sales	36.1		%	32.7		%			35.3		%	32.6		%
Income before income taxes	898			720			25	%	1,660			1,339			24	%
Net income	745			601			24	%	1,384			1,135			22	%
Less net income for noncontrolling interests	(1)			—					(3)			(1)
Net income attributable to Eaton ordinary shareholders	744			601			24	%	1,382			1,133			22	%
Excluding acquisition and divestiture charges, after-tax	30			44					41			47
Excluding restructuring program charges, after-tax	24			8					31			22
Excluding intangible asset amortization expense, after-tax	88			99					186			198
Adjusted earnings	$	886		$	751		18	%	$	1,639		$	1,400		17	%
Net income per share attributable to Eaton ordinary shareholders - diluted	$	1.86		$	1.50		24	%	$	3.45		$	2.82		22	%
Excluding per share impact of acquisition and divestiture charges, after-tax	0.08			0.11					0.10			0.12
Excluding per share impact of restructuring program charges, after-tax	0.06			0.02					0.08			0.05
Excluding per share impact of intangible asset amortization expense, after-tax	0.21			0.24					0.46			0.50
Adjusted earnings per ordinary share	$	2.21		$	1.87		18	%	$	4.09		$	3.49		17	%

Net Sales

Changes in Net sales are summarized as follows:	Three months ended June 30, 2023		Six months ended June 30, 2023
Organic growth	13	%	14	%
Foreign currency	—	%	(1)	%
Total increase in Net sales	13	%	13	%

Organic sales increased 13% in the second quarter and 14% in the first six months of 2023 due to broad-based strength in end-markets of the Electrical Americas and Electrical Global business segments, strength in sales to both commercial and military OEM and aftermarket in the Aerospace business segment, and higher sales volumes including inflationary pricing recovery for both the Vehicle and eMobility business segments.

Gross Profit

Gross profit margin increased from 32.7% in the second quarter of 2022 to 36.1% in the second quarter of 2023 primarily due to higher sales volumes including inflationary pricing recovery, partially offset by wage and commodity inflation and unfavorable product mix. Gross profit margin increased from 32.6% in the first six months of 2022 to 35.3% in the first six months of 2023 primarily due to higher sales volumes including inflationary pricing recovery, partially offset by wage and commodity inflation and operating inefficiencies.

Income Taxes

The effective income tax rate for the second quarter of 2023 was expense of 17.0% compared to expense of 16.5% for the second quarter of 2022. The effective income tax rate for the first six months of 2023 was expense of 16.6% compared to expense of 15.3% for the first six months of 2022. The increase in the effective tax rate in the second quarter and first six months of 2023 was primarily due to greater levels of income in higher tax jurisdictions.

26

Net Income

Changes in Net income attributable to Eaton ordinary shareholders and Net income per share attributable to Eaton ordinary shareholders - diluted are summarized as follows:

	Three months ended				Six months ended
(In millions except for per share data)	Dollars		Per share		Dollars		Per share
June 30, 2022	$	601	$	1.50	$	1,133	$	2.82
Business segment results of operations
Performance	182		0.45		343		0.86
Foreign currency	(2)		—		(15)		(0.04)
Corporate
Intangible asset amortization expense	11		0.03		12		0.04
Restructuring program charges	(16)		(0.04)		(9)		(0.03)
Acquisition and divestiture charges	14		0.03		6		0.02
Other corporate items	(36)		(0.09)		(65)		(0.16)
Tax rate impact	(10)		(0.02)		(23)		(0.06)
June 30, 2023	$	744	$	1.86	$	1,382	$	3.45

Business Segment Results of Operations

The following is a discussion of Net sales, operating profit and operating margin by business segment.

Electrical Americas

	Three months ended June 30						Increase (decrease)		Six months ended June 30						Increase (decrease)
(In millions)	2023			2022					2023			2022
Net sales	$	2,538		$	2,131		19	%	$	4,832		$	4,022		20	%
Operating profit	$	669		$	495		35	%	$	1,194		$	857		39	%
Operating margin	26.4		%	23.2		%			24.7		%	21.3		%

Net sales increased 19% in the second quarter of 2023 and 20% in the first six months of 2023 driven entirely by organic sales growth. The increase in organic sales reflects broad-based strength in end-markets, with particular strength in commercial & institutional, utility, data center, and industrial end-markets in the second quarter of 2023, and commercial & institutional, utility, and data center end-markets in the first six months of 2023.

The operating margin increased from 23.2% in the second quarter of 2022 to 26.4% in the second quarter of 2023 and from 21.3% in the first six months of 2022 to 24.7% in the first six months of 2023 primarily due to higher sales volumes including inflationary pricing recovery, partially offset by wage and commodity inflation, higher costs to support growth initiatives, and gains from the sale of certain office facilities in 2022.

27

Electrical Global

	Three months ended June 30						Increase (decrease)		Six months ended June 30						Increase (decrease)
(In millions)	2023			2022					2023			2022
Net sales	$	1,569		$	1,495		5	%	$	3,069		$	2,932		5	%
Operating profit	$	290		$	282		3	%	$	564		$	561		1	%
Operating margin	18.5		%	18.9		%			18.4		%	19.1		%

Changes in Net sales are summarized as follows:	Three months ended June 30, 2023		Six months ended June 30, 2023
Organic growth	6	%	8	%
Divestiture	(1)	%	(1)	%
Foreign currency	—	%	(2)	%
Total increase in Net sales	5	%	5	%

The increase in organic sales in the second quarter and first six months of 2023 was primarily due to strength in utility, data center, distributed IT, and industrial end-markets.

The operating margin decreased from 18.9% in the second quarter of 2022 to 18.5% in the second quarter of 2023 primarily due to unfavorable product mix and inflation, partially offset by higher sales volumes including inflationary pricing recovery. The operating margin decreased from 19.1% in the first six months of 2022 to 18.4% in the first six months of 2023 primarily due to operating inefficiencies from ongoing, but improving, supply chain constraints, inflation, and unfavorable product mix, partially offset by higher sales volumes including inflationary pricing recovery.

Aerospace

	Three months ended June 30						Increase (decrease)		Six months ended June 30						Increase (decrease)
(In millions)	2023			2022					2023			2022
Net sales	$	848		$	742		14	%	$	1,650		$	1,459		13	%
Operating profit	$	191		$	163		17	%	$	371		$	321		16	%
Operating margin	22.5		%	21.9		%			22.5		%	22.0		%

Net sales increased 14% in the second quarter of 2023 and 13% in the first six months of 2023 driven entirely by organic sales growth. The increase in organic sales in the second quarter of 2023 was primarily due to strength in sales to both commercial and military OEM and aftermarket. The increase in organic sales in the first six months of 2023 was primarily due to broad-based strength across all markets with particular strength in commercial OEM and aftermarket.

The operating margin increased from 21.9% in the second quarter of 2022 to 22.5% in the second quarter of 2023 and from 22.0% in the first six months of 2022 to 22.5% in the first six months of 2023 primarily due to higher sales volumes including inflationary pricing recovery, partially offset by commodity and wage inflation.

28

Vehicle

	Three months ended June 30						Increase (decrease)		Six months ended June 30						Increase (decrease)
(In millions)	2023			2022					2023			2022
Net sales	$	751		$	708		6	%	$	1,490		$	1,379		8	%
Operating profit	$	115		$	108		6	%	$	222		$	221		—	%
Operating margin	15.3		%	15.3		%			14.9		%	16.0		%

Changes in Net sales are summarized as follows:	Three months ended June 30, 2023		Six months ended June 30, 2023
Organic growth	6	%	9	%
Foreign currency	—	%	(1)	%
Total increase in Net sales	6	%	8	%

The increase in organic sales in the second quarter of 2023 was primarily due to strength in North American light vehicle markets, and the Asia Pacific and European regions. The increase in organic sales in the first six months of 2023 was primarily due to broad-based strength in all regions.

The operating margin was flat at 15.3% in both the second quarter of 2022 and 2023. The operating margin decreased from 16.0% in the first six months of 2022 to 14.9% in the first six months of 2023 primarily due to commodity and wage inflation, and operating inefficiencies, partially offset by higher sales volumes including inflationary pricing recovery.

eMobility

	Three months ended June 30						Increase (decrease)		Six months ended June 30						Increase (decrease)
(In millions)	2023			2022					2023			2022
Net sales	$	161		$	136		18	%	$	308		$	262		18	%
Operating loss	$	(1)		$	(2)		50	%	$	(5)		$	(5)		—	%
Operating margin	(0.5)		%	(1.5)		%			(1.6)		%	(1.8)		%

Net sales increased 18% in the second quarter and first six months of 2023 driven entirely by organic sales growth. The increase in organic sales in the second quarter and first six months of 2023 was due to strength in North American and European markets primarily due to robust demand for electric vehicles.

The operating margin increased from negative 1.5% in the second quarter of 2022 to negative 0.5% in the second quarter of 2023 primarily due to higher sales volumes including inflationary pricing recovery, partially offset by wage and commodity inflation. The operating margin increased from negative 1.8% in the first six months of 2022 to negative 1.6% in the first six months of 2023 primarily due to higher sales volumes including inflationary pricing recovery, partially offset by manufacturing start-up costs associated with new electric vehicle programs, and wage and commodity inflation.

29

Corporate Expense

	Three months ended June 30				Increase (decrease)		Six months ended June 30				Increase (decrease)
(In millions)	2023		2022				2023		2022
Intangible asset amortization expense	$	113	$	122	(7)	%	$	237	$	250	(5)	%
Interest expense - net	42		31		35	%	91		63		44	%
Pension and other postretirement benefits income	(11)		(9)		22	%	(22)		(28)		(21)	%
Restructuring program charges	29		10		190	%	39		28		39	%
Other expense - net	192		171		12	%	340		302		13	%
Total corporate expense	$	366	$	325	13	%	$	686	$	615	12	%

Total corporate expense increased from $325 million in the second quarter of 2022 to $366 million in the second quarter of 2023 primarily due to higher Restructuring program charges and Interest expense – net. Total corporate expenses increased from $615 million in the first six months of 2022 to $686 million in the first six months of 2023 primarily due to higher Interest expense - net and Other expense - net. The increase in Other expense - net in the first six months of 2023 is primarily due to the 2022 gain on sale of the Hydraulics business discussed in Note 2.

30

LIQUIDITY, CAPITAL RESOURCES, AND FINANCIAL CONDITION

Liquidity and Financial Condition

Eaton’s objective is to finance its business through operating cash flow and an appropriate mix of equity and long-term and short-term debt. By diversifying its debt maturity structure, Eaton reduces liquidity risk.

On May 18, 2023, Eaton issued senior notes (2023 Notes) with a face amount of $500 million. The 2023 Notes mature in 2028 with interest payable semi-annually at a rate of 4.35% per annum. The issuer received proceeds totaling $497 million from the issuance, net of financing costs. Proceeds from the 2023 Notes were used primarily to pay down outstanding U.S. dollar commercial paper. The 2023 Notes are fully and unconditionally guaranteed on an unsubordinated, unsecured basis by Eaton and certain of its direct and indirect subsidiaries. The 2023 Notes contain customary optional redemption and par call provisions. The 2023 Notes also contain a provision which upon a change of control requires the Company to make an offer to purchase all or any part of the 2023 Notes at a purchase price of 101% of the principal amount plus accrued and unpaid interest. The 2023 Notes are subject to customary non-financial covenants.

On March 3, 2023, a subsidiary of Eaton issued Euro denominated notes (2023 Euro Notes) in a private issuance with a face value of €300 million ($318 million). The floating rate notes are due June 3, 2024 with interest payable quarterly based on the three-month Euro Interbank Offered Rate plus 25 basis points. Proceeds from the Euro Notes were used to pay down outstanding U.S. dollar commercial paper. The 2023 Euro Notes are fully and unconditionally guaranteed on an unsubordinated, unsecured basis by Eaton. The 2023 Euro Notes contain a change of control provision which requires the Company to make an offer to purchase all or any part of the 2023 Euro Notes at a purchase price of 100.5% of the principal amount plus accrued and unpaid interest. The 2023 Euro Notes are subject to customary non-financial covenants.

The Company maintains revolving credit facilities consisting of a $500 million 364-day revolving credit facility that will expire on October 2, 2023 and a $2,500 million five-year revolving credit facility that will expire on October 1, 2027. The revolving credit facilities totaling $3,000 million are used to support commercial paper borrowings and are fully and unconditionally guaranteed by Eaton and certain of its direct and indirect subsidiaries on an unsubordinated, unsecured basis. There were no borrowings outstanding under Eaton’s revolving credit facilities at June 30, 2023. The Company maintains access to the commercial paper markets through its $3,000 million commercial paper program, of which none was outstanding on June 30, 2023, used primarily to manage fluctuations in working capital.

In 2022, the Company paid $610 million to acquire Royal Power Solutions and received cash of $22 million from Danfoss A/S to fully settle all post-closing adjustments from the sale of the Hydraulics business.

Over the course of a year, cash, short-term investments, and short-term debt may fluctuate in order to manage global liquidity. As of June 30, 2023 and December 31, 2022, Eaton had cash of $353 million and $294 million, short-term investments of $977 million and $261 million, and short-term debt of $94 million and $324 million, respectively. Eaton believes it has the operating flexibility, cash flow, cash and short-term investment balances, availability under existing revolving credit facilities, and access to capital markets in excess of the liquidity necessary to meet future operating needs of the business, fund capital expenditures and acquisitions of businesses, as well as scheduled payments of long-term debt.

Eaton was in compliance with each of its debt covenants for all periods presented.

Cash Flows

A summary of cash flows is as follows:

	Six months ended June 30
(In millions)	2023		2022		Change from 2022
Net cash provided by operating activities	$	1,185	$	382	$	803
Net cash used in investing activities	(1,030)		(822)		(208)
Net cash provided by (used in) financing activities	(113)		492		(605)
Effect of currency on cash	16		15		1
Total increase in cash	$	59	$	66

Operating Cash Flow

Net cash provided by operating activities increased by $803 million in the first six months of 2023 compared to 2022 primarily due to lower investment in working capital and higher net income in 2023.

31

Investing Cash Flow

Net cash used in investing activities increased by $208 million in the first six months of 2023 compared to 2022 primarily driven by an increase in net purchases of short-term investments to $719 million in 2023 from $4 million in 2022, no proceeds from sales of property, plant, and equipment in 2023 compared to proceeds of $92 million in 2022, partially offset by no cash paid for business acquisitions in 2023 compared to cash paid of $612 million in 2022.

Financing Cash Flow

Net cash used in financing activities increased by $605 million in the first six months of 2023 compared to 2022 primarily due to net payments of short-term debt of $225 million in 2023 compared to net proceeds of short-term debt of $1,384 million in 2022, partially offset by higher proceeds from borrowings of $818 million in 2023 compared to no proceeds from borrowings in 2022, and no repurchase of shares in 2023 compared to repurchase of shares of $186 million in 2022.

Uses of Cash

Capital Expenditures

Capital expenditures were $286 million and $254 million in the first six months of 2023 and 2022, respectively. Eaton expects approximately $700 million in capital expenditures in 2023.

Dividends

Cash dividend payments were $692 million and $654 million in the first six months of 2023 and 2022, respectively. Payment of quarterly dividends in the future depends upon the Company’s ability to generate net income and operating cash flows, among other factors, and is subject to declaration by the Eaton Board of Directors. The Company intends to continue to pay quarterly dividends in 2023.

Share Repurchases

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 and six months ended June 30, 2023, no ordinary shares were repurchased. During the six months ended June 30, 2022, 1.3 million ordinary shares were repurchased under the 2022 program in the open market at a total cost of $186 million. At June 30, 2023, there is $4,714 million still available for share repurchases under the 2022 Program. The Company will continue to pursue share repurchases in 2023 depending on market conditions and capital levels.

Acquisition of Businesses

The Company paid cash of $612 million to acquire a business in the first six months of 2022. There were no business acquisitions in the first six months of 2023. The Company will continue to focus on deploying its capital toward businesses that provide opportunities for higher growth and strong returns, and align with secular trends and its power management strategies.

Debt

The Company manages a number of short-term and long-term debt instruments, including commercial paper. At June 30, 2023, the Company had Short-term debt of $94 million, Current portion of long-term debt of $402 million, and Long-term debt of $8,804 million.

Supply Chain Finance Program

A third-party financial institution offers a voluntary supply chain finance (SCF) program that enables certain of the Company’s suppliers, at the supplier’s sole discretion, to sell receivables due from the Company to the financial institution on terms directly negotiated with the financial institution. The SCF program does not have a significant impact on the Company’s liquidity as payments by the Company to participating suppliers are paid to the financial institution on the invoice due date, regardless of whether an individual invoice is sold by the supplier to the financial institution. For additional information on the SCF program, see Note 7.

32

Guaranteed Debt

Issuers, Guarantors and Guarantor Structure    

Eaton Corporation has issued senior notes pursuant to indentures dated April 1, 1994 (the 1994 Indenture), November 20, 2012 (the 2012 Indenture), September 15, 2017 (the 2017 Indenture) and August 23, 2022 (as supplemented by the First and Second Supplemental Indentures of the same date and the Third Supplemental Indenture dated May 18, 2023), the 2022 Indenture). The senior notes of Eaton Corporation are registered under the Securities Act of 1933, as amended (the Registered Senior Notes). Eaton Capital Unlimited Company, a subsidiary of Eaton, is the issuer of five outstanding series of debt securities sold in offshore transactions under Regulation S promulgated under the Securities Act (the Eurobonds). The Eurobonds and the Registered Senior Notes (together, the Senior Notes) comprise substantially all of Eaton’s long-term indebtedness.

Substantially all of the Senior Notes (with limited exceptions, for example, see Note 8 of the Financial Statements included herewith), together with the credit facilities described above under Liquidity and Financial Condition (the Credit Facilities), are guaranteed by Eaton and 17 of its subsidiaries. Accordingly, they rank equally with each other. However, because these obligations are not secured, they would be effectively subordinated to any existing or future secured indebtedness of Eaton and its subsidiaries. As of June 30, 2023, Eaton has no material, long-term secured debt. The guaranteed Registered Senior Notes are also structurally subordinated to the liabilities of Eaton's subsidiaries that are not guarantors. Except as described below under Future Guarantors, Eaton is not obligated to cause its subsidiaries to guarantee the Registered Senior Notes.

The table set forth in Exhibit 22 filed with the Form 10-K filed on February 23, 2023 (10-K Exhibit 22) details the primary obligors and guarantors with respect to the guaranteed Registered Senior Notes.

Terms of Guarantees of Registered Securities

Payment of principal and interest on the Registered Senior Notes is guaranteed, on an unsecured, unsubordinated basis by the subsidiaries of Eaton set forth in the table referenced in the 10-K Exhibit 22. Each guarantee is full and unconditional, and joint and several. Each guarantor's guarantee is an unsecured obligation that ranks equally with all its other unsecured and unsubordinated indebtedness. The obligations of each guarantor under its guarantee of the Registered Senior Notes is subject to a customary savings clause or similar provision designed to prevent such guarantee from constituting a fraudulent conveyance or otherwise legally impermissible or voidable obligation.

Though the terms of the indentures vary slightly, generally, each guarantee of the Registered Senior Notes by a guarantor that is a subsidiary of Eaton Corporation provides that it will be automatically and unconditionally released and discharged under certain circumstances, including, but not limited to:

(a)the consummation of certain types of transactions permitted under the applicable indenture, including one that results in such guarantor ceasing to be a subsidiary; and

(b)for Registered Senior Notes issued under the 2022 Indenture, when such guarantor is a guarantor or issuer of indebtedness in an aggregate outstanding principal amount of less than 25% of our total outstanding indebtedness.

Further, each guarantee by a direct or indirect parent of Eaton Corporation (other than Eaton) provides that it will also be released if:

(c)such guarantee (so long as the guarantor is not obligated under any other U.S. debt obligations), becomes prohibited by any applicable law, rule or regulation or by any contractual obligation; or

(d)such guarantee results 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).

The guarantee of Eaton does not contain any release provisions.

Future Guarantors

The 2012 and 2017 Indentures generally provide that, with certain limited exceptions, any subsidiary of Eaton must become a guarantor if it becomes obligated as borrower or guarantor under any series of debt securities or a syndicated credit facility. Further, the 2012 and 2017 Indentures provide that any entity that becomes a direct or indirect parent entity of Eaton Corporation and holds any material assets, with certain limited exceptions, or owes any material liabilities must become a guarantor. The 2022 Indenture provides only that, with certain limited exceptions, any subsidiary of Eaton must become a guarantor if it becomes obligated as borrower or guarantor under indebtedness with an aggregate outstanding principal amount in excess of 25% of the Parent and its Subsidiaries' then-outstanding indebtedness.

The 1994 Indenture does not contain provisions with respect to future guarantors.

33

Summarized Financial Information of Guarantors and Issuers

(In millions)	June 30, 2023		December 31, 2022
Current assets	$	3,799	$	3,363
Noncurrent assets	12,923		12,938
Current liabilities	3,163		2,948
Noncurrent liabilities	10,482		10,047
Amounts due to subsidiaries that are non-issuers and non-guarantors - net	16,779		16,285
(In millions)			Six months ended June 30, 2023
Net sales			$	6,499
Sales to subsidiaries that are non-issuers and non-guarantors			535
Cost of products sold			4,954
Expense from subsidiaries that are non-issuers and non-guarantors - net			424
Net income			71

The financial information presented is that of Eaton Corporation and the Guarantors, which includes Eaton Corporation plc, on a combined basis and the financial information of non-issuer and non-guarantor subsidiaries has been excluded. Intercompany balances and transactions between Eaton Corporation and Guarantors have been eliminated, and amounts due from, amounts due to, and transactions with non-issuer and non-guarantor subsidiaries have been presented separately.

FORWARD-LOOKING STATEMENTS

This Form 10-Q Report contains forward-looking statements concerning our acquisition strategy, litigation, expected capital expenditures, future dividend payments, anticipated share repurchases, and expected restructuring program charges and benefits. These statements may discuss goals, intentions and expectations as to future trends, plans, events, results of operations or financial condition, or state other information relating to Eaton, based on current beliefs of management as well as assumptions made by, and information currently available to, management. Forward-looking statements generally will be accompanied by words such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “forecast,” “guidance,” “intend,” “may,” “possible,” “potential,” “predict,” “project” or other similar words, phrases or expressions. These statements should be used with caution and are subject to various risks and uncertainties, many of which are outside Eaton’s control. The following factors could cause actual results to differ materially from those in the forward-looking statements: the course of the COVID-19 pandemic, including government responses thereto and the rate of global economic recovery therefrom; unanticipated changes in the markets for the Company’s business segments; unanticipated downturns in business relationships with customers or their purchases from us; the availability of credit to customers and suppliers; supply chain disruptions, competitive pressures on sales and pricing; unanticipated changes in the cost of material, labor and other production costs, or unexpected costs that cannot be recouped in product pricing; the introduction of competing technologies; unexpected technical or marketing difficulties; unexpected claims, charges, litigation or dispute resolutions; strikes or other labor unrest; the impact of acquisitions and divestitures; unanticipated difficulties integrating acquisitions; new laws and governmental regulations; interest rate changes; tax rate changes or exposure to additional income tax liability; stock market and currency fluctuations; war, natural disasters, civil or political unrest or terrorism; and unanticipated deterioration of economic and financial conditions in the United States and around the world. Eaton does not assume any obligation to update these forward-looking statements.

ITEM 3.QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.

There have been no material changes in exposures to market risk since December 31, 2022.

34

ITEM 4.CONTROLS AND PROCEDURES.

Evaluation of Disclosure Controls and Procedures - Pursuant to SEC Rule 13a-15, an evaluation was performed under the supervision and with the participation of Eaton’s management, including Craig Arnold - Principal Executive Officer; and Thomas B. Okray - Principal Financial Officer, of the effectiveness of the design and operation of the Company's disclosure controls and procedures. Based on that evaluation, management concluded that Eaton’s disclosure controls and procedures were effective as of June 30, 2023.

Disclosure controls and procedures are designed to ensure that information required to be disclosed in Eaton’s reports filed or submitted under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed in Eaton’s reports filed under the Exchange Act is accumulated and communicated to management, including Eaton’s Principal Executive Officer and Principal Financial Officer, to allow timely decisions regarding required disclosure.

During the second quarter of 2023, there was no change in Eaton’s internal control over financial reporting that materially affected, or is reasonably likely to materially affect, internal control over financial reporting.

PART II — OTHER INFORMATION

ITEM 1.LEGAL PROCEEDINGS.

Information regarding the Company's current legal proceedings is presented in Note 10 of the Notes to the condensed consolidated financial statements.

ITEM 1A.RISK FACTORS.

“Item 1A. Risk Factors” in Eaton's 2022 Form 10-K includes a discussion of the Company's risk factors. There have been no material changes from the risk factors described in the 2022 Form 10-K.

ITEM 2.UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS.

(c) Issuer's Purchases of Equity Securities

During the second quarter of 2023, there were no shares repurchased.

35

ITEM 6.EXHIBITS.

Eaton Corporation plc

Second Quarter 2023 Report on Form 10-Q

3 (i)	Certificate of Incorporation — Incorporated by reference to the Form S-8 filed November 30, 2012
3 (ii)	Amended and Restated Memorandum and Articles of Incorporation — Incorporated by reference to the Form 8-K filed on May 1, 2017
4.1	Description of Eaton Corporation plc’s Securities registered pursuant to Section 12 of the Securities Exchange Act of 1934 (incorporated by reference to Exhibit 4.1 of the registrant's Form 10-K filed on February 26, 2020)
4.2	Indenture dated as of November 20, 2012, among Turlock Corporation, the guarantors named therein and The Bank of New York Mellon Trust Company, N.A., as trustee (incorporated by reference to Exhibit 4.1 of Eaton Corporation plc's Form 8-K Current Report filed on November 26, 2012 (Commission File No. 333-182303))
4.3	Supplemental Indenture No. 1, dated as of November 30, 2012, among Eaton Corporation, the guarantors named therein and The Bank of New York Mellon Trust Company, N.A., as trustee (incorporated by reference to Exhibit 4.2 of the registrant's Form S-4 filed on September 6, 2013)
4.4	Supplemental Indenture No. 2, dated as of January 8, 2013, among Eaton Corporation, the guarantors named therein and The Bank of New York Mellon Trust Company, N.A., as trustee (incorporated by reference Exhibit 4.3 of the registrant's Form S-4 filed on September 6, 2013)
4.5	Supplemental Indenture No. 3, dated as of December 20, 2013, among Eaton Corporation, the guarantors named therein and The Bank of New York Mellon Trust Company, N.A., as trustee (incorporated by reference Exhibit 4.4 of the registrant's Form 10-K filed on February 28, 2018)
4.6	Supplemental Indenture No. 4, dated as of December 20, 2017 and effective as of January 1, 2018, among Eaton Corporation, the guarantors named therein and The Bank of New York Mellon Trust Company, N.A., as trustee (incorporated by reference Exhibit 4.5 of the registrant's Form 10-K filed on February 28, 2018)
4.7	Supplemental Indenture No. 5, dated as of February 16, 2018, among Eaton Corporation, the guarantors named therein and The Bank of New York Mellon Trust Company, N.A., as trustee (incorporated by reference Exhibit 4.6 of the registrant's Form 10-K filed on February 28, 2018)
4.8	Indenture dated as of August 23, 2022, among Eaton Corporation, the guarantors named therein and The Bank of New York Mellon Trust Company, N.A., as Trustee
4.9	First Supplemental Indenture dated as of August 23, 2022, among Eaton Corporation, the guarantors named therein and The Bank of New York Mellon Trust Company, N.A., as Trustee
4.10	Second Supplemental Indenture dated as of August 23, 2022, among Eaton Corporation, the guarantors named therein and The Bank of New York Mellon Trust Company, N.A., as Trustee
4.11	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 - 4.10) hereto
10.1	5-Year Revolving Credit Agreement, dated as of October 3, 2022, among Eaton Corporation, the guarantors from time to time party thereto, the several lenders from time to time parties thereto, Citibank, N.A., as Administrative Agent, Citibank, N.A., JPMorgan Chase Bank, N.A. and BofA Securities, Inc. as joint lead arrangers and joint bookrunners, JPMorgan Chase Bank, N.A., as syndication agent and Bank of America, N.A. as documentation agent.
10.2	364-Day Revolving Credit Agreement, dated as of October 3, 2022, among Eaton Corporation, the guarantors from time to time party thereto, the several lenders from time to time parties thereto, Citibank, N.A., as Administrative Agent, Citibank, N.A., JPMorgan Chase Bank, N.A. and BofA Securities, Inc., as joint lead arrangers and joint bookrunners, JPMorgan Chase Bank, N.A., as syndication agent and Bank of America, N.A. as documentation agent.
31.1	Certification of Principal Executive Officer (Pursuant to Rule 13a-14(a)) — Filed in conjunction with this Form 10-Q Report *
31.2	Certification of Principal Financial Officer (Pursuant to Rule 13a-14(a)) — Filed in conjunction with this Form 10-Q Report *
32.1	Certification of Principal Executive Officer (Pursuant to Rule 13a-14(b) as adopted pursuant to Section 906 of the Sarbanes-Oxley Act) — Filed in conjunction with this Form 10-Q Report *
32.2	Certification of Principal Financial Officer (Pursuant to Rule 13a-14(b) as adopted pursuant to Section 906 of the Sarbanes-Oxley Act) — Filed in conjunction with this Form 10-Q Report *

36

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.

37

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

			EATON CORPORATION plc
			Registrant
Date:	August 1, 2023	By:	/s/ Thomas B. Okray
			Thomas B. Okray
			Principal Financial Officer
			(On behalf of the registrant and as Principal Financial Officer)

38

EX-31.1

Eaton Corporation plc

Second Quarter 2023 Report on Form 10-Q

Exhibit 31.1

Certification

I, Craig Arnold, certify that:

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:	August 1, 2023	/s/ Craig Arnold
		Craig Arnold
		Principal Executive Officer

EX-31.2

Eaton Corporation plc

Second Quarter 2023 Report on Form 10-Q

Exhibit 31.2

Certification

I, Thomas B. Okray, certify that:

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:	August 1, 2023	/s/ Thomas B. Okray
		Thomas B. Okray
		Principal Financial Officer

EX-32.1

Eaton Corporation plc

Second Quarter 2023 Report on Form 10-Q

Exhibit 32.1

Certification

This written statement is submitted in accordance with Section 906 of the Sarbanes-Oxley Act of 2002. It accompanies Eaton Corporation plc’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2023 (“10-Q Report”).

I hereby certify that, based on my knowledge, the 10-Q Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C 78m), and information contained in the 10-Q Report fairly presents, in all material respects, the financial condition and results of operations of Eaton Corporation plc and its consolidated subsidiaries.

Date:	August 1, 2023	/s/ Craig Arnold
		Craig Arnold
		Principal Executive Officer

EX-32.2

Eaton Corporation plc

Second Quarter 2023 Report on Form 10-Q

Exhibit 32.2

Certification

This written statement is submitted in accordance with Section 906 of the Sarbanes-Oxley Act of 2002. It accompanies Eaton Corporation plc’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2023 (“10-Q Report”).

I hereby certify that, based on my knowledge, the 10-Q Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C 78m), and information contained in the 10-Q Report fairly presents, in all material respects, the financial condition and results of operations of Eaton Corporation plc and its consolidated subsidiaries.

Date:	August 1, 2023	/s/ Thomas B. Okray
		Thomas B. Okray
		Principal Financial Officer

XML

Cover Page shares in Millions	6 Months Ended
	Jun. 30, 2023 shares
Cover [Abstract]
Document Type	10-Q
Document Period End Date	Jun. 30, 2023
Entity File Number	000-54863
Entity Registrant Name	EATON CORPORATION plc
Entity Incorporation, State or Country Code	L2
Entity Tax Identification Number	98-1059235
Entity Address, Address Line One	Eaton House,
Entity Address, Address Line Two	30 Pembroke Road,
Entity Address, City or Town	Dublin 4,
Entity Address, Country	IE
Entity Address, Postal Zip Code	D04 Y0C2
City Area Code	+353
Local Phone Number	1637 2900
Title of 12(b) Security	Ordinary shares ($0.01 par value)
Trading Symbol	ETN
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding	399.0
Entity Central Index Key	0001551182
Amendment Flag	false
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q2
Current Fiscal Year End Date	--12-31
Document Quarterly Report	true
Document Transition Report	false

XML

CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Income Statement [Abstract]
Net sales	$ 5,866	$ 5,212	$ 11,349	$ 10,054
Cost of products sold	3,747	3,505	7,346	6,774
Selling and administrative expense	986	828	1,890	1,618
Research and development expense	187	168	366	333
Interest expense - net	42	31	91	63
Gain on sale of business	0	0	0	24
Other expense (income) - net	7	(41)	(4)	(50)
Income before income taxes	898	720	1,660	1,339
Income tax expense	153	119	276	205
Net income	745	601	1,384	1,135
Less net income for noncontrolling interests	(1)	0	(3)	(1)
Net income attributable to Eaton ordinary shareholders	$ 744	$ 601	$ 1,382	$ 1,133
Net income per share attributable to Eaton ordinary shareholders
Diluted (USD per share)	$ 1.86	$ 1.50	$ 3.45	$ 2.82
Basic (USD per share)	$ 1.86	$ 1.51	$ 3.47	$ 2.84
Weighted-average number of ordinary shares outstanding
Diluted (shares)	400.7	400.7	400.6	401.2
Basic (shares)	398.9	399.0	398.7	399.1
Cash dividends declared per ordinary share (USD per share)	$ 0.86	$ 0.81	$ 1.72	$ 1.62

XML

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Statement of Comprehensive Income [Abstract]
Net income	$ 745	$ 601	$ 1,384	$ 1,135
Less net income for noncontrolling interests	(1)	0	(3)	(1)
Net income attributable to Eaton ordinary shareholders	744	601	1,382	1,133
Other comprehensive income (loss), net of tax
Currency translation and related hedging instruments	57	(470)	176	(533)
Pensions and other postretirement benefits	(2)	(41)	(5)	36
Cash flow hedges	(1)	68	14	169
Other comprehensive income (loss) attributable to Eaton ordinary shareholders	53	(444)	185	(328)
Total comprehensive income attributable to Eaton ordinary shareholders	$ 797	$ 157	$ 1,567	$ 805

XML

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions	Jun. 30, 2023	Dec. 31, 2022
Current assets
Cash	$ 353	$ 294
Short-term investments	977	261
Accounts receivable - net	4,399	4,076
Inventory	3,670	3,430
Prepaid expenses and other current assets	904	685
Total current assets	10,303	8,746
Property, plant and equipment
Land and buildings	2,198	2,129
Machinery and equipment	6,139	5,885
Gross property, plant and equipment	8,337	8,013
Accumulated depreciation	(5,071)	(4,867)
Net property, plant and equipment	3,267	3,146
Other noncurrent assets
Goodwill	14,914	14,796
Other intangible assets	5,285	5,485
Operating lease assets	594	570
Deferred income taxes	354	330
Other assets	2,056	1,940
Total assets	36,772	35,014
Current liabilities
Short-term debt	94	324
Current portion of long-term debt	402	10
Accounts payable	3,192	3,072
Accrued compensation	465	467
Other current liabilities	2,571	2,488
Total current liabilities	6,725	6,360
Noncurrent liabilities
Long-term debt	8,804	8,321
Pension liabilities	642	649
Other postretirement benefits liabilities	173	177
Operating lease liabilities	482	459
Deferred income taxes	531	530
Other noncurrent liabilities	1,428	1,444
Total noncurrent liabilities	12,060	11,580
Shareholders’ equity
Ordinary shares (399.0 million outstanding in 2023 and 397.8 million in 2022)	4	4
Capital in excess of par value	12,554	12,512
Retained earnings	9,156	8,468
Accumulated other comprehensive loss	(3,760)	(3,946)
Shares held in trust	(1)	(1)
Total Eaton shareholders’ equity	17,953	17,038
Noncontrolling interests	36	38
Total equity	17,988	17,075
Total liabilities and equity	$ 36,772	$ 35,014

XML

CONSOLIDATED BALANCE SHEETS (Parenthetical) - shares shares in Millions	Jun. 30, 2023	Dec. 31, 2022
Statement of Financial Position [Abstract]
Ordinary shares outstanding (shares)	399.0	397.8

XML

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Operating activities
Net income	$ 1,384	$ 1,135
Adjustments to reconcile to net cash provided by operating activities
Depreciation and amortization	466	479
Deferred income taxes	(3)	(14)
Pension and other postretirement benefits expense	9	21
Contributions to pension plans	(51)	(55)
Contributions to other postretirement benefits plans	(10)	(12)
Gain on sale of business	0	(24)
Changes in working capital	(622)	(1,144)
Other - net	12	(5)
Net cash provided by operating activities	1,185	382
Investing activities
Capital expenditures for property, plant and equipment	(286)	(254)
Proceeds from sales of property, plant and equipment	0	92
Cash paid for acquisition of a business, net of cash acquired	0	(612)
Proceeds from (payments for) sale of business, net of cash sold	(1)	22
Investments in associate companies	(68)	(17)
Purchases of short-term investments - net	(719)	(4)
Proceeds from (payments for) settlement of currency exchange contracts not designated as hedges - net	42	(9)
Other - net	2	(41)
Net cash used in investing activities	(1,030)	(822)
Financing activities
Proceeds from borrowings	818	0
Payments on borrowings	(5)	(6)
Short-term debt, net	(225)	1,384
Cash dividends paid	(692)	(654)
Exercise of employee stock options	46	13
Repurchase of shares	0	(186)
Employee taxes paid from shares withheld	(47)	(58)
Other - net	(7)	(1)
Net cash provided by (used in) financing activities	(113)	492
Effect of currency on cash	16	15
Total increase in cash	59	66
Cash at the beginning of the period	294	297
Cash at the end of the period	$ 353	$ 364

XML

BASIS OF PRESENTATION

6 Months Ended

Jun. 30, 2023

Organization, Consolidation and Presentation of Financial Statements [Abstract]

BASIS OF PRESENTATION

BASIS OF PRESENTATION

The accompanying unaudited condensed consolidated financial statements of Eaton Corporation plc (Eaton or the Company) have been prepared in accordance with generally accepted accounting principles for interim financial information, the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by United States generally accepted accounting principles (US GAAP) for complete financial statements. However, in the opinion of management, all adjustments (consisting of normal recurring accruals) have been made that are necessary for a fair presentation of the condensed consolidated financial statements for the interim periods.

This Form 10-Q should be read in conjunction with the consolidated financial statements and related notes included in Eaton’s 2022 Form 10-K. The interim period results are not necessarily indicative of the results to be expected for the full year. Management has evaluated subsequent events through the date this Form 10-Q was filed with the Securities and Exchange Commission.

Adoption of New Accounting Standard

Eaton adopted Accounting Standards Update 2022-04, Liabilities - Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations, in the first quarter of 2023. The standard requires disclosure of certain information about the Company's supply chain finance program, including key terms and a rollforward of confirmed amounts payable. The adoption of the standard did not have a material impact on the condensed consolidated financial statements.

XML

ACQUISITIONS AND DIVESTITURES OF BUSINESSES

6 Months Ended

Jun. 30, 2023

Business Combination and Asset Acquisition [Abstract]

ACQUISITIONS AND DIVESTITURES OF BUSINESSES

ACQUISITIONS AND DIVESTITURE OF BUSINESSES

Sale of Hydraulics business

On August 2, 2021, Eaton completed the sale of the Hydraulics business to Danfoss A/S and recognized a pre-tax gain of $617 million in 2021. The Company finalized negotiations of post-closing adjustments with Danfoss A/S and recognized an additional pre-tax gain of $24 million in the first quarter of 2022 and received cash of $22 million in the second quarter of 2022 from Danfoss A/S to fully settle all post-closing adjustments.

Acquisition of Royal Power Solutions

On January 5, 2022, Eaton acquired Royal Power Solutions for $610 million, net of cash received. Royal Power Solutions is a U.S. based manufacturer of high-precision electrical connectivity components used in electric vehicle, energy management, industrial and mobility markets. Royal Power Solutions is reported within the eMobility business segment.

Eaton's 2022 Condensed Consolidated Financial Statements include Royal Power Solutions' results of operations, including segment operating profit of $11 million on sales of $79 million, from the date of acquisition through June 30, 2022.

Russia

During the second quarter of 2022, in light of the ongoing war with Ukraine, the Company decided to exit its business operations in Russia and recorded charges of $29 million presented in Other expense (income) - net on the Consolidated Statements of Income. The charges consisted primarily of write-downs of accounts receivable, inventory and other assets, and accruals for severance.

Acquisition of a 50% stake in Jiangsu Huineng Electric Co., Ltd’s circuit breaker business

On July 1, 2022, Eaton acquired a 50 percent stake in Jiangsu Huineng Electric Co., Ltd’s circuit breaker business, which manufactures and markets low-voltage circuit breakers in China. Eaton accounts for this investment on the equity method of accounting and is reported within the Electrical Global business segment.

Acquisition of a 49% stake in Jiangsu Ryan Electrical Co. Ltd.

On April 23, 2023, Eaton acquired a 49 percent stake in Jiangsu Ryan Electrical Co. Ltd., a manufacturer of power distribution and sub-transmission transformers in China. Eaton accounts for this investment on the equity method of accounting and is reported within the Electrical Global business segment.

XML

REVENUE RECOGNITION

6 Months Ended

Jun. 30, 2023

Revenue from Contract with Customer [Abstract]

REVENUE RECOGNITION

REVENUE RECOGNITION

Sales are recognized when obligations under the terms of the contract are satisfied and control of promised goods or services have transferred to our customers. Control is transferred when the customer has the ability to direct the use of and obtain benefits from the goods or services. Sales are measured at the amount of consideration the Company expects to be paid in exchange for these products or services.

The following table provides disaggregated sales by lines of businesses, geographic destination, market channel or end market, as applicable, for the Company's operating segments:

	Three months ended June 30				Six months ended June 30
(In millions)	2023		2022		2023		2022
Electrical Americas
Products	$	757	$	695	$	1,473	$	1,298
Systems	1,781		1,436		3,359		2,724
Total	$	2,538	$	2,131	$	4,832	$	4,022
Electrical Global
Products	$	889	$	878	$	1,772	$	1,754
Systems	680		617		1,297		1,178
Total	$	1,569	$	1,495	$	3,069	$	2,932
Aerospace
Original Equipment Manufacturers	$	324	$	285	$	638	$	577
Aftermarket	297		242		561		463
Industrial and Other	226		215		451		419
Total	$	848	$	742	$	1,650	$	1,459
Vehicle
Commercial	$	459	$	445	$	907	$	847
Passenger and Light Duty	292		263		583		532
Total	$	751	$	708	$	1,490	$	1,379
eMobility	$	161	$	136	$	308	$	262
Total net sales	$	5,866	$	5,212	$	11,349	$	10,054

The timing of revenue recognition, billings and cash collections results in billed accounts receivable, unbilled receivables (revenue recognized exceeds amount billed to the customer), and deferred revenue (advance payments and billings in excess of revenue recognized). Accounts receivable from customers were $3,876 million and $3,581 million at June 30, 2023 and December 31, 2022, respectively. Amounts are billed as work progresses in accordance with agreed-upon contractual terms, either at periodic intervals or upon achievement of contractual milestones. These assets and liabilities are reported on the Consolidated Balance Sheets on a contract-by-contract basis at the end of each reporting period. Unbilled receivables were $287 million and $233 million at June 30, 2023 and December 31, 2022, respectively, and are recorded in Prepaid expenses and other current assets. The increase in unbilled receivables reflects higher revenue recognized from increased business activity in 2023.

Changes in the deferred revenue liabilities are as follows:

(In millions)	Deferred Revenue
Balance at January 1, 2023	$	508
Customer deposits and billings	1,052
Revenue recognized in the period	(949)
Translation	9
Balance at June 30, 2023	$	620

(In millions)	Deferred Revenue
Balance at January 1, 2022	$	422
Customer deposits and billings	742
Revenue recognized in the period	(705)
Translation	(15)
Balance at June 30, 2022	$	444

Deferred revenue liabilities of $604 million and $489 million as of June 30, 2023 and December 31, 2022, respectively, were included in Other current liabilities with the remaining balance presented in Other noncurrent liabilities.

A significant portion of open orders placed with Eaton are by original equipment manufacturers or distributors. These open orders are not considered firm as they have been historically subject to releases by customers. In measuring backlog of unsatisfied or partially satisfied obligations, only the amount of orders to which customers are firmly committed are included. Using this criterion, total backlog at June 30, 2023 was approximately $12.5 billion. At June 30, 2023, approximately 82% of this backlog is targeted for delivery to customers in the next twelve months and the rest thereafter.

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CREDIT LOSSES FOR RECEIVABLES

6 Months Ended

Jun. 30, 2023

Credit Loss [Abstract]

CREDIT LOSSES FOR RECEIVABLES

CREDIT LOSSES FOR RECEIVABLES

Receivables are exposed to credit risk based on the customers’ ability to pay which is influenced by, among other factors, their financial liquidity position. Eaton’s receivables are generally short-term in nature with a majority outstanding less than 90 days.

Eaton performs ongoing credit evaluation of its customers and maintains sufficient allowances for potential credit losses. The Company evaluates the collectability of its receivables based on the length of time the receivable is past due, and any anticipated future write-off based on historic experience adjusted for market conditions. The Company's segments, supported by our global credit department, perform the credit evaluation and monitoring process to estimate and manage credit risk. The process includes an evaluation of credit losses for both the overall segment receivable and specific customer balances. The process also includes review of customer financial information and credit ratings, approval and monitoring of customer credit limits, and an assessment of market conditions. The Company may also require prepayment from customers to mitigate credit risk. Receivable balances are written off against an allowance for credit losses after a final determination of collectability has been made.

Accounts receivable are net of an allowance for credit losses of $39 million and $31 million at June 30, 2023 and December 31, 2022, respectively. The change in the allowance for credit losses includes expense and net write-offs, none of which are significant.

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INVENTORY

6 Months Ended

Jun. 30, 2023

Inventory Disclosure [Abstract]

INVENTORY

INVENTORY

Inventory is carried at lower of cost or net realizable value. The components of inventory are as follows:

(In millions)	June 30, 2023		December 31, 2022
Raw materials	$	1,458	$	1,275
Work-in-process	930		781
Finished goods	1,282		1,375
Total inventory	$	3,670	$	3,430

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GOODWILL

6 Months Ended

Jun. 30, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL

GOODWILL

Changes in the carrying amount of goodwill by segment are as follows:

(In millions)	January 1, 2023		Translation		June 30, 2023
Electrical Americas	$	7,402	$	11	$	7,413
Electrical Global	3,929		59		3,988
Aerospace	2,844		47		2,891
Vehicle	287		1		289
eMobility	334		—		334
Total	$	14,796	$	118	$	14,914

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SUPPLY CHAIN FINANCE PROGRAM

6 Months Ended

Jun. 30, 2023

Payables and Accruals [Abstract]

SUPPLY CHAIN FINANCE PROGRAM

SUPPLY CHAIN FINANCE PROGRAM

The Company negotiates payment terms directly with its suppliers for the purchase of goods and services. In addition, a third-party financial institution offers a voluntary supply chain finance (SCF) program that enables certain of the Company’s suppliers, at the supplier’s sole discretion, to sell receivables due from the Company to the financial institution on terms directly negotiated with the financial institution. If a supplier elects to participate in the SCF program, the supplier decides which invoices are sold to the financial institution and the Company has no economic interest in a supplier’s decision to sell an invoice. Payments by the Company to participating suppliers are paid to the financial institution on the invoice due date, regardless of whether an individual invoice is sold by the supplier to the financial institution. The amounts due to the financial institution for suppliers that participate in the SCF program are included in Accounts payable on the Consolidated Balance Sheets, and the associated payments are included in operating activities on the Condensed Consolidated Statements of Cash Flows.

The changes in SCF obligations are as follows:

(In millions)	SCF Obligations
Balance at January 1, 2023	$	208
Invoices confirmed during the period	634
Invoices paid during the period	(519)
Translation	13
Balance at June 30, 2023	$	336

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DEBT

6 Months Ended

Jun. 30, 2023

Debt Disclosure [Abstract]

DEBT

DEBT

On May 18, 2023, Eaton issued senior notes (2023 Notes) with a face amount of $500 million. The 2023 Notes mature in 2028 with interest payable semi-annually at a rate of 4.35% per annum. The issuer received proceeds totaling $497 million from the issuance, net of financing costs. The 2023 Notes are fully and unconditionally guaranteed on an unsubordinated, unsecured basis by Eaton and certain of its direct and indirect subsidiaries. The 2023 Notes contain customary optional redemption and par call provisions. The 2023 Notes also contain a provision which upon a change of control requires the Company to make an offer to purchase all or any part of the 2023 Notes at a purchase price of 101% of the principal amount plus accrued and unpaid interest. The 2023 Notes are subject to customary non-financial covenants.

On March 3, 2023, a subsidiary of Eaton issued Euro denominated notes (2023 Euro Notes) in a private issuance with a face value of €300 million ($318 million). The floating rate notes are due June 3, 2024 with interest payable quarterly based on the three-month Euro Interbank Offered Rate plus 25 basis points. The 2023 Euro Notes are fully and unconditionally guaranteed on an unsubordinated, unsecured basis by Eaton. The 2023 Euro Notes contain a change of control provision which requires the Company to make an offer to purchase all or any part of the 2023 Euro Notes at a purchase price of 100.5% of the principal amount plus accrued and unpaid interest. The 2023 Euro Notes are subject to customary non-financial covenants.

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RETIREMENT BENEFITS PLANS

6 Months Ended

Jun. 30, 2023

Retirement Benefits [Abstract]

RETIREMENT BENEFITS PLANS

RETIREMENT BENEFITS PLANS

The components of retirement benefits expense (income) are as follows:

	United States pension benefit expense (income)				Non-United States pension benefit expense (income)				Other postretirement benefits expense (income)
	Three months ended June 30
(In millions)	2023		2022		2023		2022		2023		2022
Service cost	$	5	$	8	$	10	$	14	$	—	$	1
Interest cost	35		28		21		12		3		1
Expected return on plan assets	(49)		(52)		(30)		(29)		—		—
Amortization	1		4		3		12		(5)		(2)
	(8)		(12)		4		9		(2)		—
Settlements	10		17		—		1		—		—
Total expense (income)	$	2	$	5	$	4	$	10	$	(2)	$	—
	United States pension benefit expense (income)				Non-United States pension benefit expense (income)				Other postretirement benefits expense (income)
	Six months ended June 30
(In millions)	2023		2022		2023		2022		2023		2022
Service cost	$	10	$	16	$	21	$	30	$	—	$	1
Interest cost	71		48		42		24		5		3
Expected return on plan assets	(98)		(105)		(60)		(60)		—		—
Amortization	2		12		4		24		(9)		(4)
	(15)		(29)		7		18		(3)		—
Settlements	19		31		1		1		—		—
Total expense (income)	$	4	$	2	$	8	$	19	$	(3)	$	—

The components of retirement benefits expense (income) other than service costs are included in Other expense (income) - net.

During 2020, the Company announced it was freezing its United States pension plans for its non-union employees. The freeze was effective January 1, 2021 for non-union U.S. employees whose retirement benefit was determined under a cash balance formula and is effective January 1, 2026 for non-union U.S. employees whose retirement benefit is determined under a final average pay formula.

During the second quarter and first six months of 2023, the Company recognized settlement losses from lump-sum distributions of $10 million and $20 million, respectively. During the second quarter and first six months of 2022, the Company recognized settlement losses from lump-sum distributions of $18 million and $32 million, respectively. During the second quarter and first six months of 2022, the Company remeasured certain pension plans as a result of lump-sum distributions exceeding or expected to exceed the sum of service and interest costs for the year. These remeasurements resulted in a decrease of $137 million and $90 million in funded status and corresponding increase in Accumulated other comprehensive loss in the second quarter and first six months of 2022, respectively.

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LEGAL CONTINGENCIES	6 Months Ended
	Jun. 30, 2023
Commitments and Contingencies Disclosure [Abstract]
LEGAL CONTINGENCIES	LEGAL CONTINGENCIES Eaton is subject to a broad range of claims, administrative and legal proceedings such as lawsuits that relate to contractual allegations and indemnity claims, tax audits, patent infringement, personal injuries, antitrust matters, and employment-related matters. Eaton is also subject to legal claims from historic products which may have contained asbestos. Insurance may cover some of the costs associated with these claims and proceedings. Although it is not possible to predict with certainty the outcome or cost of these matters, the Company believes they will not have a material adverse effect on the Condensed Consolidated Financial Statements.

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INCOME TAXES	6 Months Ended
	Jun. 30, 2023
Income Tax Disclosure [Abstract]
INCOME TAXES	INCOME TAXESThe effective income tax rate for the second quarter of 2023 was expense of 17.0% compared to expense of 16.5% for the second quarter of 2022. The effective income tax rate for the first six months of 2023 was expense of 16.6% compared to expense of 15.3% for the first six months of 2022. The increase in the effective tax rate in the second quarter and first six months of 2023 was primarily due to greater levels of income in higher tax jurisdictions.

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EQUITY

6 Months Ended

Jun. 30, 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
Net income	—	—		—		744		—		—		744		1		745
Other comprehensive income, net of tax								53				53				53
Cash dividends paid	—	—		—		(344)		—		—		(344)		—		(344)
Issuance of shares under equity-based    compensation plans	0.4	—		52		(1)		—		(1)		51		—		51
Changes in noncontrolling interest of    consolidated subsidiaries - net	—	—		—		—		—		—		—		(1)		(1)
Balance at June 30, 2023	399.0	$	4	$	12,554	$	9,156	$	(3,760)	$	(1)	$	17,953	$	36	$	17,988

	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
Net income	—	—		—		601		—		—		601		—		601
Other comprehensive loss, net of tax								(444)				(444)				(444)
Cash dividends paid	—	—		—		(323)		—		—		(323)		—		(323)
Issuance of shares under equity-based    compensation plans	—	—		26		1		—		—		27		—		27
Changes in noncontrolling interest of    consolidated subsidiaries - net	—	—		(1)		—		—		—		(1)		—		(1)
Repurchase of shares	(0.7)	—		—		(100)		—		—		(100)		—		(100)
Balance at June 30, 2022	398.3	$	4	$	12,452	$	7,886	$	(3,961)	$	(1)	$	16,380	$	36	$	16,416

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 and six months ended June 30, 2023, no ordinary shares were repurchased. During the three and six months ended June 30, 2022, 0.7 million and 1.3 million ordinary shares, respectively, were repurchased under the 2022 program in the open market at a total cost of $100 million and $186 million, respectively.

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	182		(19)		39		201
Amounts reclassified from Accumulated other    comprehensive loss (income)	(6)		15		(26)		(16)
Net current-period Other comprehensive    income (loss)	176		(5)		14		185
Balance at June 30, 2023	$	(3,088)	$	(815)	$	143	$	(3,760)

The reclassifications out of Accumulated other comprehensive loss are as follows:

(In millions)	Six months ended June 30, 2023			Consolidated Statements of Income classification
Gains and (losses) on net investment hedges (amount excluded   from effectiveness testing)
Currency exchange contracts	$	6		Interest expense - net
Tax expense	—
Total, net of tax	6
Amortization of defined benefits pensions and other   postretirement benefits items
Actuarial loss and prior service cost	(17)		1
Tax benefit	2
Total, net of tax	(15)
Gains and (losses) on cash flow hedges
Floating-to-fixed interest rate swaps	6			Interest expense - net
Currency exchange contracts	26			Net sales and Cost of products sold
Tax expense	(7)
Total, net of tax	26
Total reclassifications for the period	$	16

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 June 30				Six months ended June 30
(In millions except for per share data)	2023		2022		2023		2022
Net income attributable to Eaton ordinary shareholders	$	744	$	601	$	1,382	$	1,133
Weighted-average number of ordinary shares outstanding - diluted	400.7		400.7		400.6		401.2
Less dilutive effect of equity-based compensation	1.8		1.7		1.9		2.1
Weighted-average number of ordinary shares outstanding - basic	398.9		399.0		398.7		399.1
Net income per share attributable to Eaton ordinary shareholders
Diluted	$	1.86	$	1.50	$	3.45	$	2.82
Basic	1.86		1.51		3.47		2.84

For the second quarter and first six months of 2023, 0.1 million 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. For the second quarter and first six months of 2022, all stock options were included in the calculation of diluted net income per share attributable to Eaton ordinary shareholders because they were all dilutive.

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FAIR VALUE MEASUREMENTS

6 Months Ended

Jun. 30, 2023

Fair Value Disclosures [Abstract]

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS

Fair value is measured based on an exit price, representing the amount that would be received to sell an asset or paid to satisfy a liability in an orderly transaction between market participants. Fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions, a fair value hierarchy is established, which categorizes the inputs used in measuring fair value as follows: (Level 1) observable inputs such as quoted prices in active markets; (Level 2) inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and (Level 3) unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions.

A summary of financial instruments and contingent consideration recognized at fair value, and the fair value measurements used, is as follows:

(In millions)	Total		Level 1		Level 2		Level 3
June 30, 2023
Cash	$	353	$	353	$	—	$	—
Short-term investments	977		977		—		—
Net derivative contracts	46		—		46		—
Contingent future payments from acquisition of Green Motion	(46)		—		—		(46)
December 31, 2022
Cash	$	294	$	294	$	—	$	—
Short-term investments	261		261		—		—
Net derivative contracts	29		—		29		—
Contingent future payments from acquisition of Green Motion	(44)		—		—		(44)

Eaton values its financial instruments using an industry standard market approach, in which prices and other relevant information is generated by market transactions involving identical or comparable assets or liabilities.

On March 22, 2021, Eaton acquired Green Motion SA, a leading designer and manufacturer of electric vehicle charging hardware and related software based in Switzerland. Green Motion SA was acquired for $106 million, including $49 million of cash paid at closing and an initial estimate of $57 million for the fair value of contingent future consideration based on 2023 and 2024 revenue performance. The fair value of contingent consideration liabilities is estimated by discounting contingent payments expected to be made, and may increase or decrease based on changes in revenue estimates and discount rates, with a maximum possible undiscounted value of $114 million. As of June 30, 2023, the fair value of the contingent future payments has been reduced to $46 million based primarily on anticipated reductions in projected 2023 revenue compared to the initial estimate.

Other Fair Value Measurements

Long-term debt and the current portion of long-term debt had a carrying value of $9,206 million and fair value of $8,622 million at June 30, 2023 compared to $8,331 million and $7,625 million, respectively, at December 31, 2022. The fair value of Eaton's debt instruments was estimated using prevailing market interest rates on debt with similar creditworthiness, terms and maturities and is considered a Level 2 fair value measurement.

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DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES

6 Months Ended

Jun. 30, 2023

Derivative Instruments and Hedging Activities Disclosure [Abstract]

DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES

DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES

In the normal course of business, Eaton is exposed to certain risks related to fluctuations in interest rates, currency exchange rates and commodity prices. The Company uses various derivative and non-derivative financial instruments, primarily interest rate swaps, currency forward exchange contracts, currency swaps and commodity contracts to manage risks from these market fluctuations. The instruments used by Eaton are straightforward, non-leveraged instruments. The counterparties to these instruments are financial institutions with strong credit ratings. Eaton maintains control over the size of positions entered into with any one counterparty and regularly monitors the credit rating of these institutions. Such instruments are not purchased and sold for trading purposes.

Derivative financial instruments are accounted for at fair value and recognized as assets or liabilities in the Consolidated Balance Sheets. Accounting for the gain or loss resulting from the change in the fair value of the derivative financial instrument depends on whether it has been designated as part of a hedging relationship, is effective and the nature of the hedging activity. Eaton formally documents all relationships between derivative financial instruments accounted for as designated hedges and the hedged item, as well as its risk-management objective and strategy for undertaking the hedge transaction. This process includes linking derivative financial instruments to a recognized asset or liability, specific firm commitment, forecasted transaction, or net investment in a foreign operation. These financial instruments can be designated as:

•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.

The gain or loss from a derivative financial instrument designated as a hedge is classified in the same line of the Consolidated Statements of Income as the offsetting loss or gain on the hedged item. The cash flows resulting from these financial instruments are classified in operating activities on the Condensed Consolidated Statements of Cash Flows.

For derivatives that are not designated as a hedge, any gain or loss is immediately recognized in income. The majority of derivatives used in this manner relate to risks resulting from assets or liabilities denominated in a foreign currency and certain commodity contracts that arise in the normal course of business.

Eaton uses currency exchange contracts and certain of its debt denominated in foreign currency to hedge portions of its net investments in foreign operations against foreign currency exposure (net investment hedges). The Company uses the spot rate method to assess hedge effectiveness when currency exchange contracts are used in net investment hedges. Under this method, changes in the spot exchange rate are recognized in Accumulated other comprehensive loss. Changes related to the forward rate are excluded from the hedging relationship and the forward points are amortized to Interest expense - net on a straight-line basis over the term of the contract. The cash flows resulting from these currency exchange contracts are classified in investing activities on the Condensed Consolidated Statements of Cash Flows.

Derivative Financial Statement Impacts

The fair value of derivative financial instruments recognized in the Consolidated Balance Sheets is as follows:

(In millions)	Notional amount		Other  current assets		Other noncurrent assets		Other current liabilities		Other noncurrent liabilities		Type of hedge	Term
June 30, 2023
Derivatives designated as hedges
Currency exchange contracts	$	990	$	52	$	2	$	16	$	3	Cash flow	1 to 31 months
Commodity contracts	27		1		—		1		—		Cash flow	1 to 12 months
Currency exchange contracts	557		3		—		—		—		Net investment	3 months
Total			$	55	$	2	$	17	$	3
Derivatives not designated as hedges
Currency exchange contracts	$	4,891	$	19			$	10				1 to 7 months
December 31, 2022
Derivatives designated as hedges
Currency exchange contracts	$	1,240	$	35	$	2	$	17	$	9	Cash flow	1 to 36 months
Commodity contracts	64		4		—		2		—		Cash flow	1 to 12 months
Total			$	39	$	2	$	19	$	9
Derivatives not designated as hedges
Currency exchange contracts	$	4,683	$	30			$	14				1 to 12 months

The currency exchange contracts shown in the table above as derivatives not designated as hedges are primarily contracts entered into to manage currency volatility or exposure on intercompany receivables, payables and loans. While Eaton does not elect hedge accounting treatment for these derivatives, Eaton targets managing 100% of the intercompany balance sheet exposure to minimize the effect of currency volatility related to the movement of goods and services in the normal course of its operations. This activity represents the great majority of these currency exchange contracts. The cash flows resulting from the settlement of these derivatives have been classified in investing activities in the Condensed Consolidated Statements of Cash Flows.

Foreign currency denominated debt designated as non-derivative net investment hedging instruments had a carrying value on an after-tax basis of $3,092 million at June 30, 2023 and $2,711 million at December 31, 2022.

As of June 30, 2023, the volume of outstanding commodity contracts that were entered into to hedge forecasted transactions:

Commodity	June 30, 2023		Term
Aluminum	4	Millions of pounds	1 to 11 months
Copper	3	Millions of pounds	1 to 7 months
Gold	1,587	Troy ounces	1 to 12 months
Silver	289,724	Troy ounces	1 to 7 months

The following amounts were recorded on the Consolidated Balance Sheets related to fixed-to-floating interest rate swaps:

(In millions)	Carrying amount of the hedged assets (liabilities)				Cumulative amount of fair value hedging adjustment included in the carrying amount of the hedged asset (liabilities) (a)
Location on Consolidated Balance Sheets	June 30, 2023		December 31, 2022		June 30, 2023		December 31, 2022
Long-term debt	$	(713)	$	(713)	$	(45)	$	(48)

(a) At June 30, 2023 and December 31, 2022, these amounts include the cumulative liability amount of fair value hedging adjustments remaining for which the hedge accounting has been discontinued of $45 million and $48 million, respectively.

The impact of cash flow and fair value hedging activities to the Consolidated Statements of Income is as follows:

	Three months ended June 30, 2023
(In millions)	Net Sales		Cost of products sold		Interest expense - net
Amounts from Consolidated Statements of Income	$	5,866	$	3,747	$	42
Gain (loss) on derivatives designated as cash flow hedges
Forward starting floating-to-fixed interest rate swaps
Hedged item	$	—	$	—	$	(3)
Derivative designated as hedging instrument	—		—		3
Currency exchange contracts
Hedged item	$	(1)	$	(15)	$	—
Derivative designated as hedging instrument	1		15		—

	Three months ended June 30, 2022
(In millions)	Net Sales		Cost of products sold		Interest expense - net
Amounts from Consolidated Statements of Income	$	5,212	$	3,505	$	31
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	$	—	$	(1)	$	—
Derivative designated as hedging instrument	—		1		—

	Six months ended June 30, 2023
(In millions)	Net sales		Cost of products sold		Interest expense - net
Amounts from Consolidated Statements of Income	$	11,349	$	7,346	$	91
Gain (loss) on derivatives designated as cash flow hedges
Forward starting floating-to-fixed interest rate swaps
Hedged item	$	—	$	—	$	(6)
Derivative designated as hedging instrument	—		—		6
Currency exchange contracts
Hedged item	$	1	$	(30)	$	—
Derivative designated as hedging instrument	(1)		30		—

	Six months ended June 30, 2022
(In millions)	Net sales		Cost of products sold		Interest expense - net
Amounts from Consolidated Statements of Income	$	10,054	$	6,774	$	63
Gain (loss) on derivatives designated as cash flow hedges
Currency exchange contracts
Hedged item	$	4	$	(7)	$	—
Derivative designated as hedging instrument	(4)		7		—
Commodity contracts
Hedged item	$	—	$	(2)	$	—
Derivative designated as hedging instrument	—		2		—
Gain (loss) on derivatives designated as fair value hedges
Fixed-to-floating interest rate swaps
Hedged item	$	—	$	—	$	8
Derivative designated as hedging instrument	—		—		(8)

The impact of derivatives not designated as hedges to the Consolidated Statements of Income is as follows:

	Gain (loss) recognized in Consolidated Statements of Income				Consolidated Statements of Income classification
	Three months ended June 30
(In millions)	2023		2022
Gain (loss) on derivatives not designated as hedges
Currency exchange contracts	$	6	$	(25)	Interest expense - net
Commodity contracts	—		(16)		Other expense (income) - net
Total	$	6	$	(41)

	Gain (loss) recognized in Consolidated Statements of Income				Consolidated Statements of Income classification
	Six months ended June 30
(In millions)	2023		2022
Gain (loss) on derivatives not designated as hedges
Currency exchange contracts	$	17	$	(33)	Interest expense - net
Commodity contracts	—		(15)		Other expense (income) - net and Cost of products sold (a)
Total	$	17	$	(48)

(a) In the second quarter of 2022, Eaton changed the presentation of gains and losses associated with derivative contracts for commodities that are not designated as hedges from Cost of products sold to Other expense (income) - net on the Consolidated Statements of Income. Prior period amounts have not been reclassified as they are not material.

The impact of derivative and non-derivative instruments designated as hedges to the Consolidated Statements of Income and Comprehensive Income is as follows:

	Gain (loss) recognized in other comprehensive income (loss)				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
(In millions)	2023		2022			2023		2022
Derivatives designated as    cash flow hedges
Forward starting floating-to-fixed  interest rate swaps	$	1	$	113	Interest expense - net	$	3	$	—
Currency exchange contracts	18		(10)		Net sales and Cost of products sold	15		4
Commodity contracts	(2)		(12)		Cost of products sold	—		1
Derivatives designated as net    investment hedges
Currency exchange contracts
Effective portion	32		—		Gain (loss) on sale of business	—		—
Amount excluded from effectiveness       testing	4		—		Interest expense - net	4		—
Non-derivative designated as net    investment hedges
Foreign currency denominated debt	(3)		179		Gain (loss) on sale of business	—		—
Total	$	50	$	270		$	22	$	5

	Gain (loss) recognized in other comprehensive income (loss)				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
(In millions)	2023		2022			2023		2022
Derivatives designated as cash    flow hedges
Forward starting floating-to-fixed    interest rate swaps	$	1	$	237	Interest expense - net	$	6	$	—
Currency exchange contracts	49		(10)		Net sales and Cost of products sold	26		4
Commodity contracts	—		(7)		Cost of products sold	—		2
Derivatives designated as net    investment hedges
Currency exchange contracts
Effective portion	18		—		Gain (loss) on sale of business	—		—
Amount excluded from effectiveness       testing	9		—		Interest expense - net	6		—
Non-derivative designated as net    investment hedges
Foreign currency denominated debt	(66)		241		Gain (loss) on sale of business	—		—
Total	$	11	$	461		$	38	$	6

The pre-tax portion of the fair value of currency exchange contracts designated as net investment hedges included in Accumulated other comprehensive loss were net gains of $18 million at June 30, 2023. The pre-tax portion of the fair value of the forward points included in Accumulated other comprehensive loss were net gains of $9 million at June 30, 2023.

At June 30, 2023, a gain of $36 million of estimated unrealized net gains or losses associated with our cash flow hedges were expected to be reclassified to income from Accumulated other comprehensive loss within the next twelve months. These reclassifications relate to our designated foreign currency and commodity hedges that will mature in the next 12 months.

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RESTRUCTURING CHARGES

6 Months Ended

Jun. 30, 2023

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 has incurred charges of $364 million. These restructuring activities are expected to be completed in 2023 with total estimated charges of $380 million cumulatively for the entire program. The remaining charges in 2023 are expected to relate primarily to plant closing and other costs.

A summary of restructuring program charges is as follows:

	Three months ended June 30				Six months ended June 30
(In millions except for per share data)	2023		2022		2023		2022
Workforce reductions	$	15	$	2	$	17	$	7
Plant closing and other	15		8		22		21
Total before income taxes	29		10		39		28
Income tax benefit	6		2		8		6
Total after income taxes	$	24	$	8	$	31	$	22
Per ordinary share - diluted	$	0.06	$	0.02	$	0.08	$	0.05

Restructuring program charges related to the following segments:

	Three months ended June 30				Six months ended June 30
(In millions)	2023		2022		2023		2022
Electrical Americas	$	1	$	5	$	3	$	10
Electrical Global	14		1		18		6
Aerospace	2		2		3		5
Vehicle	1		3		3		6
eMobility	6		—		7		—
Corporate	5		—		6		2
Total	$	29	$	10	$	39	$	28

A summary of liabilities related to workforce reductions, plant closing and other associated costs is as follows:

(In millions)	Workforce reductions		Plant closing and other		Total
Balance at January 1, 2020	$	—	$	—	$	—
Liability recognized	172		42		214
Payments, utilization and translation	(33)		(39)		(72)
Balance at December 31, 2020	139		3		142
Liability recognized	21		57		78
Payments, utilization and translation	(64)		(52)		(116)
Balance at December 31, 2021	96		8		104
Liability recognized, net1	(13)		47		33
Payments, utilization and translation	(45)		(51)		(96)
Balance at December 31, 2022	38		4		41
Liability recognized, net	17		22		39
Payments	(10)		(20)		(30)
Balance at June 30, 2023	$	45	$	6	$	51

1The restructuring program liability was adjusted by $30 million in 2022 related to true-ups for completed workforce reductions and the decision not to close a facility in the Vehicle segment that was previously included in the program.

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 16 for additional information about business segments.

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BUSINESS SEGMENT INFORMATION

6 Months Ended

Jun. 30, 2023

Segment Reporting [Abstract]

BUSINESS SEGMENT INFORMATION

BUSINESS SEGMENT INFORMATIONOperating segments are defined as components of an enterprise about which separate financial information is available that is evaluated on a regular basis by the chief operating decision maker, or decision making group, in deciding how to allocate resources to an individual segment and in assessing performance. Eaton's operating segments are Electrical Americas, Electrical Global, Aerospace, Vehicle, and eMobility. Operating profit includes the operating profit from intersegment sales. For additional information regarding Eaton's business segments, see Note 17 to the Consolidated Financial Statements contained in the 2022 Form 10-K.

	Three months ended June 30				Six months ended June 30
(In millions)	2023		2022		2023		2022
Net sales
Electrical Americas	$	2,538	$	2,131	$	4,832	$	4,022
Electrical Global	1,569		1,495		3,069		2,932
Aerospace	848		742		1,650		1,459
Vehicle	751		708		1,490		1,379
eMobility	161		136		308		262
Total net sales	$	5,866	$	5,212	$	11,349	$	10,054
Segment operating profit (loss)
Electrical Americas	$	669	$	495	$	1,194	$	857
Electrical Global	290		282		564		561
Aerospace	191		163		371		321
Vehicle	115		108		222		221
eMobility	(1)		(2)		(5)		(5)
Total segment operating profit	1,264		1,046		2,346		1,955
Corporate
Intangible asset amortization expense	(113)		(122)		(237)		(250)
Interest expense - net	(42)		(31)		(91)		(63)
Pension and other postretirement benefits income	11		9		22		28
Restructuring program charges	(29)		(10)		(39)		(28)
Other expense - net	(192)		(171)		(340)		(302)
Income before income taxes	898		720		1,660		1,339
Income tax expense	153		119		276		205
Net income	745		601		1,384		1,135
Less net income for noncontrolling interests	(1)		—		(3)		(1)
Net income attributable to Eaton ordinary shareholders	$	744	$	601	$	1,382	$	1,133

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BASIS OF PRESENTATION (Policies)

6 Months Ended

Jun. 30, 2023

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Presentation

BASIS OF PRESENTATION

The accompanying unaudited condensed consolidated financial statements of Eaton Corporation plc (Eaton or the Company) have been prepared in accordance with generally accepted accounting principles for interim financial information, the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by United States generally accepted accounting principles (US GAAP) for complete financial statements. However, in the opinion of management, all adjustments (consisting of normal recurring accruals) have been made that are necessary for a fair presentation of the condensed consolidated financial statements for the interim periods.

This Form 10-Q should be read in conjunction with the consolidated financial statements and related notes included in Eaton’s 2022 Form 10-K. The interim period results are not necessarily indicative of the results to be expected for the full year. Management has evaluated subsequent events through the date this Form 10-Q was filed with the Securities and Exchange Commission.

Adoption of New Accounting Standard

Adoption of New Accounting Standard

Eaton adopted Accounting Standards Update 2022-04, Liabilities - Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations, in the first quarter of 2023. The standard requires disclosure of certain information about the Company's supply chain finance program, including key terms and a rollforward of confirmed amounts payable. The adoption of the standard did not have a material impact on the condensed consolidated financial statements.

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REVENUE RECOGNITION (Tables)

6 Months Ended

Jun. 30, 2023

Revenue from Contract with Customer [Abstract]

Schedule of Disaggregation of Sales

The following table provides disaggregated sales by lines of businesses, geographic destination, market channel or end market, as applicable, for the Company's operating segments:

	Three months ended June 30				Six months ended June 30
(In millions)	2023		2022		2023		2022
Electrical Americas
Products	$	757	$	695	$	1,473	$	1,298
Systems	1,781		1,436		3,359		2,724
Total	$	2,538	$	2,131	$	4,832	$	4,022
Electrical Global
Products	$	889	$	878	$	1,772	$	1,754
Systems	680		617		1,297		1,178
Total	$	1,569	$	1,495	$	3,069	$	2,932
Aerospace
Original Equipment Manufacturers	$	324	$	285	$	638	$	577
Aftermarket	297		242		561		463
Industrial and Other	226		215		451		419
Total	$	848	$	742	$	1,650	$	1,459
Vehicle
Commercial	$	459	$	445	$	907	$	847
Passenger and Light Duty	292		263		583		532
Total	$	751	$	708	$	1,490	$	1,379
eMobility	$	161	$	136	$	308	$	262
Total net sales	$	5,866	$	5,212	$	11,349	$	10,054

Schedule of Changes in Deferred Revenue Liabilities

Changes in the deferred revenue liabilities are as follows:

(In millions)	Deferred Revenue
Balance at January 1, 2023	$	508
Customer deposits and billings	1,052
Revenue recognized in the period	(949)
Translation	9
Balance at June 30, 2023	$	620

(In millions)	Deferred Revenue
Balance at January 1, 2022	$	422
Customer deposits and billings	742
Revenue recognized in the period	(705)
Translation	(15)
Balance at June 30, 2022	$	444

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INVENTORY (Tables)

6 Months Ended

Jun. 30, 2023

Inventory Disclosure [Abstract]

Schedule of Components of Inventory

The components of inventory are as follows:

(In millions)	June 30, 2023		December 31, 2022
Raw materials	$	1,458	$	1,275
Work-in-process	930		781
Finished goods	1,282		1,375
Total inventory	$	3,670	$	3,430

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GOODWILL (Tables)

6 Months Ended

Jun. 30, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Changes in Carrying Amount of Goodwill

Changes in the carrying amount of goodwill by segment are as follows:

(In millions)	January 1, 2023		Translation		June 30, 2023
Electrical Americas	$	7,402	$	11	$	7,413
Electrical Global	3,929		59		3,988
Aerospace	2,844		47		2,891
Vehicle	287		1		289
eMobility	334		—		334
Total	$	14,796	$	118	$	14,914

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SUPPLY CHAIN FINANCE PROGRAM (Tables)

6 Months Ended

Jun. 30, 2023

Payables and Accruals [Abstract]

Schedule of changes in SCF obligations

The changes in SCF obligations are as follows:

(In millions)	SCF Obligations
Balance at January 1, 2023	$	208
Invoices confirmed during the period	634
Invoices paid during the period	(519)
Translation	13
Balance at June 30, 2023	$	336

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RETIREMENT BENEFIT PLANS (Tables)

6 Months Ended

Jun. 30, 2023

Retirement Benefits [Abstract]

Schedule of Retirement Benefits Expense

The components of retirement benefits expense (income) are as follows:

	United States pension benefit expense (income)				Non-United States pension benefit expense (income)				Other postretirement benefits expense (income)
	Three months ended June 30
(In millions)	2023		2022		2023		2022		2023		2022
Service cost	$	5	$	8	$	10	$	14	$	—	$	1
Interest cost	35		28		21		12		3		1
Expected return on plan assets	(49)		(52)		(30)		(29)		—		—
Amortization	1		4		3		12		(5)		(2)
	(8)		(12)		4		9		(2)		—
Settlements	10		17		—		1		—		—
Total expense (income)	$	2	$	5	$	4	$	10	$	(2)	$	—
	United States pension benefit expense (income)				Non-United States pension benefit expense (income)				Other postretirement benefits expense (income)
	Six months ended June 30
(In millions)	2023		2022		2023		2022		2023		2022
Service cost	$	10	$	16	$	21	$	30	$	—	$	1
Interest cost	71		48		42		24		5		3
Expected return on plan assets	(98)		(105)		(60)		(60)		—		—
Amortization	2		12		4		24		(9)		(4)
	(15)		(29)		7		18		(3)		—
Settlements	19		31		1		1		—		—
Total expense (income)	$	4	$	2	$	8	$	19	$	(3)	$	—

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EQUITY (Tables)

6 Months Ended

Jun. 30, 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
Net income	—	—		—		744		—		—		744		1		745
Other comprehensive income, net of tax								53				53				53
Cash dividends paid	—	—		—		(344)		—		—		(344)		—		(344)
Issuance of shares under equity-based    compensation plans	0.4	—		52		(1)		—		(1)		51		—		51
Changes in noncontrolling interest of    consolidated subsidiaries - net	—	—		—		—		—		—		—		(1)		(1)
Balance at June 30, 2023	399.0	$	4	$	12,554	$	9,156	$	(3,760)	$	(1)	$	17,953	$	36	$	17,988

	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
Net income	—	—		—		601		—		—		601		—		601
Other comprehensive loss, net of tax								(444)				(444)				(444)
Cash dividends paid	—	—		—		(323)		—		—		(323)		—		(323)
Issuance of shares under equity-based    compensation plans	—	—		26		1		—		—		27		—		27
Changes in noncontrolling interest of    consolidated subsidiaries - net	—	—		(1)		—		—		—		(1)		—		(1)
Repurchase of shares	(0.7)	—		—		(100)		—		—		(100)		—		(100)
Balance at June 30, 2022	398.3	$	4	$	12,452	$	7,886	$	(3,961)	$	(1)	$	16,380	$	36	$	16,416

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	182		(19)		39		201
Amounts reclassified from Accumulated other    comprehensive loss (income)	(6)		15		(26)		(16)
Net current-period Other comprehensive    income (loss)	176		(5)		14		185
Balance at June 30, 2023	$	(3,088)	$	(815)	$	143	$	(3,760)

Schedule of Reclassifications of Accumulated Other Comprehensive Loss

The reclassifications out of Accumulated other comprehensive loss are as follows:

(In millions)	Six months ended June 30, 2023			Consolidated Statements of Income classification
Gains and (losses) on net investment hedges (amount excluded   from effectiveness testing)
Currency exchange contracts	$	6		Interest expense - net
Tax expense	—
Total, net of tax	6
Amortization of defined benefits pensions and other   postretirement benefits items
Actuarial loss and prior service cost	(17)		1
Tax benefit	2
Total, net of tax	(15)
Gains and (losses) on cash flow hedges
Floating-to-fixed interest rate swaps	6			Interest expense - net
Currency exchange contracts	26			Net sales and Cost of products sold
Tax expense	(7)
Total, net of tax	26
Total reclassifications for the period	$	16

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 June 30				Six months ended June 30
(In millions except for per share data)	2023		2022		2023		2022
Net income attributable to Eaton ordinary shareholders	$	744	$	601	$	1,382	$	1,133
Weighted-average number of ordinary shares outstanding - diluted	400.7		400.7		400.6		401.2
Less dilutive effect of equity-based compensation	1.8		1.7		1.9		2.1
Weighted-average number of ordinary shares outstanding - basic	398.9		399.0		398.7		399.1
Net income per share attributable to Eaton ordinary shareholders
Diluted	$	1.86	$	1.50	$	3.45	$	2.82
Basic	1.86		1.51		3.47		2.84

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FAIR VALUE MEASUREMENTS (Tables)

6 Months Ended

Jun. 30, 2023

Fair Value Disclosures [Abstract]

Schedule of Financial Instruments Recognized at Fair Value and Fair Value Measurements Used

A summary of financial instruments and contingent consideration recognized at fair value, and the fair value measurements used, is as follows:

(In millions)	Total		Level 1		Level 2		Level 3
June 30, 2023
Cash	$	353	$	353	$	—	$	—
Short-term investments	977		977		—		—
Net derivative contracts	46		—		46		—
Contingent future payments from acquisition of Green Motion	(46)		—		—		(46)
December 31, 2022
Cash	$	294	$	294	$	—	$	—
Short-term investments	261		261		—		—
Net derivative contracts	29		—		29		—
Contingent future payments from acquisition of Green Motion	(44)		—		—		(44)

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DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES (Tables)

6 Months Ended

Jun. 30, 2023

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Derivative Financial Instruments Recognized in Condensed Consolidated Balance Sheet

The fair value of derivative financial instruments recognized in the Consolidated Balance Sheets is as follows:

(In millions)	Notional amount		Other  current assets		Other noncurrent assets		Other current liabilities		Other noncurrent liabilities		Type of hedge	Term
June 30, 2023
Derivatives designated as hedges
Currency exchange contracts	$	990	$	52	$	2	$	16	$	3	Cash flow	1 to 31 months
Commodity contracts	27		1		—		1		—		Cash flow	1 to 12 months
Currency exchange contracts	557		3		—		—		—		Net investment	3 months
Total			$	55	$	2	$	17	$	3
Derivatives not designated as hedges
Currency exchange contracts	$	4,891	$	19			$	10				1 to 7 months
December 31, 2022
Derivatives designated as hedges
Currency exchange contracts	$	1,240	$	35	$	2	$	17	$	9	Cash flow	1 to 36 months
Commodity contracts	64		4		—		2		—		Cash flow	1 to 12 months
Total			$	39	$	2	$	19	$	9
Derivatives not designated as hedges
Currency exchange contracts	$	4,683	$	30			$	14				1 to 12 months

Schedule of Notional Amounts of Outstanding Derivative Positions

As of June 30, 2023, the volume of outstanding commodity contracts that were entered into to hedge forecasted transactions:

Commodity	June 30, 2023		Term
Aluminum	4	Millions of pounds	1 to 11 months
Copper	3	Millions of pounds	1 to 7 months
Gold	1,587	Troy ounces	1 to 12 months
Silver	289,724	Troy ounces	1 to 7 months

Schedule of Derivative Instruments Recorded in Balance Sheet

The following amounts were recorded on the Consolidated Balance Sheets related to fixed-to-floating interest rate swaps:

(In millions)	Carrying amount of the hedged assets (liabilities)				Cumulative amount of fair value hedging adjustment included in the carrying amount of the hedged asset (liabilities) (a)
Location on Consolidated Balance Sheets	June 30, 2023		December 31, 2022		June 30, 2023		December 31, 2022
Long-term debt	$	(713)	$	(713)	$	(45)	$	(48)

(a) At June 30, 2023 and December 31, 2022, these amounts include the cumulative liability amount of fair value hedging adjustments remaining for which the hedge accounting has been discontinued of $45 million and $48 million, respectively.

Schedule of Impact of Hedging Activities to Consolidated Statement of Income

The impact of cash flow and fair value hedging activities to the Consolidated Statements of Income is as follows:

	Three months ended June 30, 2023
(In millions)	Net Sales		Cost of products sold		Interest expense - net
Amounts from Consolidated Statements of Income	$	5,866	$	3,747	$	42
Gain (loss) on derivatives designated as cash flow hedges
Forward starting floating-to-fixed interest rate swaps
Hedged item	$	—	$	—	$	(3)
Derivative designated as hedging instrument	—		—		3
Currency exchange contracts
Hedged item	$	(1)	$	(15)	$	—
Derivative designated as hedging instrument	1		15		—

	Three months ended June 30, 2022
(In millions)	Net Sales		Cost of products sold		Interest expense - net
Amounts from Consolidated Statements of Income	$	5,212	$	3,505	$	31
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	$	—	$	(1)	$	—
Derivative designated as hedging instrument	—		1		—

	Six months ended June 30, 2023
(In millions)	Net sales		Cost of products sold		Interest expense - net
Amounts from Consolidated Statements of Income	$	11,349	$	7,346	$	91
Gain (loss) on derivatives designated as cash flow hedges
Forward starting floating-to-fixed interest rate swaps
Hedged item	$	—	$	—	$	(6)
Derivative designated as hedging instrument	—		—		6
Currency exchange contracts
Hedged item	$	1	$	(30)	$	—
Derivative designated as hedging instrument	(1)		30		—

	Six months ended June 30, 2022
(In millions)	Net sales		Cost of products sold		Interest expense - net
Amounts from Consolidated Statements of Income	$	10,054	$	6,774	$	63
Gain (loss) on derivatives designated as cash flow hedges
Currency exchange contracts
Hedged item	$	4	$	(7)	$	—
Derivative designated as hedging instrument	(4)		7		—
Commodity contracts
Hedged item	$	—	$	(2)	$	—
Derivative designated as hedging instrument	—		2		—
Gain (loss) on derivatives designated as fair value hedges
Fixed-to-floating interest rate swaps
Hedged item	$	—	$	—	$	8
Derivative designated as hedging instrument	—		—		(8)

Schedule of Amounts Recognized in Net Income

The impact of derivatives not designated as hedges to the Consolidated Statements of Income is as follows:

	Gain (loss) recognized in Consolidated Statements of Income				Consolidated Statements of Income classification
	Three months ended June 30
(In millions)	2023		2022
Gain (loss) on derivatives not designated as hedges
Currency exchange contracts	$	6	$	(25)	Interest expense - net
Commodity contracts	—		(16)		Other expense (income) - net
Total	$	6	$	(41)

	Gain (loss) recognized in Consolidated Statements of Income				Consolidated Statements of Income classification
	Six months ended June 30
(In millions)	2023		2022
Gain (loss) on derivatives not designated as hedges
Currency exchange contracts	$	17	$	(33)	Interest expense - net
Commodity contracts	—		(15)		Other expense (income) - net and Cost of products sold (a)
Total	$	17	$	(48)

(a) In the second quarter of 2022, Eaton changed the presentation of gains and losses associated with derivative contracts for commodities that are not designated as hedges from Cost of products sold to Other expense (income) - net on the Consolidated Statements of Income. Prior period amounts have not been reclassified as they are not material.

Schedule of Amounts Recognized in Accumulated Other Comprehensive Income

The impact of derivative and non-derivative instruments designated as hedges to the Consolidated Statements of Income and Comprehensive Income is as follows:

	Gain (loss) recognized in other comprehensive income (loss)				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
(In millions)	2023		2022			2023		2022
Derivatives designated as    cash flow hedges
Forward starting floating-to-fixed  interest rate swaps	$	1	$	113	Interest expense - net	$	3	$	—
Currency exchange contracts	18		(10)		Net sales and Cost of products sold	15		4
Commodity contracts	(2)		(12)		Cost of products sold	—		1
Derivatives designated as net    investment hedges
Currency exchange contracts
Effective portion	32		—		Gain (loss) on sale of business	—		—
Amount excluded from effectiveness       testing	4		—		Interest expense - net	4		—
Non-derivative designated as net    investment hedges
Foreign currency denominated debt	(3)		179		Gain (loss) on sale of business	—		—
Total	$	50	$	270		$	22	$	5

	Gain (loss) recognized in other comprehensive income (loss)				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
(In millions)	2023		2022			2023		2022
Derivatives designated as cash    flow hedges
Forward starting floating-to-fixed    interest rate swaps	$	1	$	237	Interest expense - net	$	6	$	—
Currency exchange contracts	49		(10)		Net sales and Cost of products sold	26		4
Commodity contracts	—		(7)		Cost of products sold	—		2
Derivatives designated as net    investment hedges
Currency exchange contracts
Effective portion	18		—		Gain (loss) on sale of business	—		—
Amount excluded from effectiveness       testing	9		—		Interest expense - net	6		—
Non-derivative designated as net    investment hedges
Foreign currency denominated debt	(66)		241		Gain (loss) on sale of business	—		—
Total	$	11	$	461		$	38	$	6

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RESTRUCTURING CHARGES (Tables)

6 Months Ended

Jun. 30, 2023

Restructuring and Related Activities [Abstract]

Schedule of Restructuring Program Charges

A summary of restructuring program charges is as follows:

	Three months ended June 30				Six months ended June 30
(In millions except for per share data)	2023		2022		2023		2022
Workforce reductions	$	15	$	2	$	17	$	7
Plant closing and other	15		8		22		21
Total before income taxes	29		10		39		28
Income tax benefit	6		2		8		6
Total after income taxes	$	24	$	8	$	31	$	22
Per ordinary share - diluted	$	0.06	$	0.02	$	0.08	$	0.05

Restructuring program charges related to the following segments:

	Three months ended June 30				Six months ended June 30
(In millions)	2023		2022		2023		2022
Electrical Americas	$	1	$	5	$	3	$	10
Electrical Global	14		1		18		6
Aerospace	2		2		3		5
Vehicle	1		3		3		6
eMobility	6		—		7		—
Corporate	5		—		6		2
Total	$	29	$	10	$	39	$	28

Schedule of Liabilities Related to Restructuring

A summary of liabilities related to workforce reductions, plant closing and other associated costs is as follows:

(In millions)	Workforce reductions		Plant closing and other		Total
Balance at January 1, 2020	$	—	$	—	$	—
Liability recognized	172		42		214
Payments, utilization and translation	(33)		(39)		(72)
Balance at December 31, 2020	139		3		142
Liability recognized	21		57		78
Payments, utilization and translation	(64)		(52)		(116)
Balance at December 31, 2021	96		8		104
Liability recognized, net1	(13)		47		33
Payments, utilization and translation	(45)		(51)		(96)
Balance at December 31, 2022	38		4		41
Liability recognized, net	17		22		39
Payments	(10)		(20)		(30)
Balance at June 30, 2023	$	45	$	6	$	51

1The restructuring program liability was adjusted by $30 million in 2022 related to true-ups for completed workforce reductions and the decision not to close a facility in the Vehicle segment that was previously included in the program.

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BUSINESS SEGMENT INFORMATION (Tables)

6 Months Ended

Jun. 30, 2023

Segment Reporting [Abstract]

Schedule of Business Segment Information

	Three months ended June 30				Six months ended June 30
(In millions)	2023		2022		2023		2022
Net sales
Electrical Americas	$	2,538	$	2,131	$	4,832	$	4,022
Electrical Global	1,569		1,495		3,069		2,932
Aerospace	848		742		1,650		1,459
Vehicle	751		708		1,490		1,379
eMobility	161		136		308		262
Total net sales	$	5,866	$	5,212	$	11,349	$	10,054
Segment operating profit (loss)
Electrical Americas	$	669	$	495	$	1,194	$	857
Electrical Global	290		282		564		561
Aerospace	191		163		371		321
Vehicle	115		108		222		221
eMobility	(1)		(2)		(5)		(5)
Total segment operating profit	1,264		1,046		2,346		1,955
Corporate
Intangible asset amortization expense	(113)		(122)		(237)		(250)
Interest expense - net	(42)		(31)		(91)		(63)
Pension and other postretirement benefits income	11		9		22		28
Restructuring program charges	(29)		(10)		(39)		(28)
Other expense - net	(192)		(171)		(340)		(302)
Income before income taxes	898		720		1,660		1,339
Income tax expense	153		119		276		205
Net income	745		601		1,384		1,135
Less net income for noncontrolling interests	(1)		—		(3)		(1)
Net income attributable to Eaton ordinary shareholders	$	744	$	601	$	1,382	$	1,133

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ACQUISITIONS AND DIVESTITURES OF BUSINESSES - Narrative (Details) - USD ($) $ in Millions			3 Months Ended			6 Months Ended
	Jan. 05, 2022	Aug. 02, 2021	Jun. 30, 2023	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2023	Jun. 30, 2022	Apr. 23, 2023	Jul. 01, 2022
Business Acquisition [Line Items]
Cash purchase price, net of cash received						$ 0	$ 612
Other expense - net			$ (7)	$ 41		$ 4	50
War With Russia And Ukraine
Business Acquisition [Line Items]
Other expense - net				29
Held-for-sale | Hydraulics Business
Business Acquisition [Line Items]
Consideration received, net of cash sold				$ 22			22
Disposed of by Sale | Hydraulics Business
Business Acquisition [Line Items]
Pre-tax gain (loss) on disposal		$ 617			$ 24
Royal Power Solutions
Business Acquisition [Line Items]
Cash purchase price, net of cash received	$ 610
Operating profit of acquiree since acquisition date							11
Revenue of acquiree since acquisition date							$ 79
Jiangsu Huineng Electric Co Ltd's circuit breaker business
Business Acquisition [Line Items]
Ownership interest acquired									50.00%
Jiangsu Ryan Electrical Co. Ltd.
Business Acquisition [Line Items]
Ownership interest acquired								49.00%

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REVENUE RECOGNITION - Narrative (Details) - USD ($) $ in Millions	Jun. 30, 2023	Dec. 31, 2022
Disaggregation of Revenue [Line Items]
Accounts receivables from customers	$ 3,876	$ 3,581
Unbilled receivables	287	233
Deferred revenue liabilities, included in other current liabilities	604	$ 489
Backlog of unsatisfied or partially satisfied obligations	$ 12,500
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-07-01
Disaggregation of Revenue [Line Items]
Backlog expected to be recognized in the next twelve months, percent	82.00%
Expected timing of satisfaction	12 months

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REVENUE RECOGNITION - Disaggregation of Sales (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Disaggregation of Revenue [Line Items]
Net sales	$ 5,866	$ 5,212	$ 11,349	$ 10,054
Electrical Americas
Disaggregation of Revenue [Line Items]
Net sales	2,538	2,131	4,832	4,022
Electrical Americas | Products
Disaggregation of Revenue [Line Items]
Net sales	757	695	1,473	1,298
Electrical Americas | Systems
Disaggregation of Revenue [Line Items]
Net sales	1,781	1,436	3,359	2,724
Electrical Global
Disaggregation of Revenue [Line Items]
Net sales	1,569	1,495	3,069	2,932
Electrical Global | Products
Disaggregation of Revenue [Line Items]
Net sales	889	878	1,772	1,754
Electrical Global | Systems
Disaggregation of Revenue [Line Items]
Net sales	680	617	1,297	1,178
Aerospace
Disaggregation of Revenue [Line Items]
Net sales	848	742	1,650	1,459
Aerospace | Original Equipment Manufacturers
Disaggregation of Revenue [Line Items]
Net sales	324	285	638	577
Aerospace | Aftermarket
Disaggregation of Revenue [Line Items]
Net sales	297	242	561	463
Aerospace | Industrial and Other
Disaggregation of Revenue [Line Items]
Net sales	226	215	451	419
Vehicle
Disaggregation of Revenue [Line Items]
Net sales	751	708	1,490	1,379
Vehicle | Commercial
Disaggregation of Revenue [Line Items]
Net sales	459	445	907	847
Vehicle | Passenger and Light Duty
Disaggregation of Revenue [Line Items]
Net sales	292	263	583	532
eMobility
Disaggregation of Revenue [Line Items]
Net sales	$ 161	$ 136	$ 308	$ 262

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REVENUE RECOGNITION - Changes in Deferred Revenue Liabilities (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Movement in Deferred Revenue [Roll Forward]
Balance at beginning of period	$ 508	$ 422
Customer deposits and billings	1,052	742
Revenue recognized in the period	(949)	(705)
Translation	9	(15)
Balance at end of period	$ 620	$ 444

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CREDIT LOSSES FOR RECEIVABLES (Details) - USD ($) $ in Millions	Jun. 30, 2023	Dec. 31, 2022
Credit Loss [Abstract]
Allowance for credit losses	$ 39	$ 31

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INVENTORY (Details) - USD ($) $ in Millions	Jun. 30, 2023	Dec. 31, 2022
Inventory Disclosure [Abstract]
Raw materials	$ 1,458	$ 1,275
Work-in-process	930	781
Finished goods	1,282	1,375
Total inventory	$ 3,670	$ 3,430

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GOODWILL (Details) $ in Millions	6 Months Ended
	Jun. 30, 2023 USD ($)
Goodwill [Roll Forward]
Balance at beginning of period	$ 14,796
Translation	118
Balance at end of period	14,914
Electrical Americas
Goodwill [Roll Forward]
Balance at beginning of period	7,402
Translation	11
Balance at end of period	7,413
Electrical Global
Goodwill [Roll Forward]
Balance at beginning of period	3,929
Translation	59
Balance at end of period	3,988
Aerospace
Goodwill [Roll Forward]
Balance at beginning of period	2,844
Translation	47
Balance at end of period	2,891
Vehicle
Goodwill [Roll Forward]
Balance at beginning of period	287
Translation	1
Balance at end of period	289
eMobility
Goodwill [Roll Forward]
Balance at beginning of period	334
Translation	0
Balance at end of period	$ 334

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SUPPLY CHAIN FINANCE PROGRAM (Details) $ in Millions	6 Months Ended
	Jun. 30, 2023 USD ($)
Supplier Finance Program, Obligation [Roll Forward]
Balance at beginning period	$ 208
Invoices confirmed during the period	634
Invoices paid during the period	(519)
Translation	13
Balance at ending period	$ 336

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DEBT (Details) € in Millions, $ in Millions			6 Months Ended
	May 18, 2023 USD ($)	Mar. 03, 2023 USD ($)	Jun. 30, 2023 USD ($)	Jun. 30, 2022 USD ($)	Mar. 03, 2023 EUR (€)
Debt Instrument [Line Items]
Proceeds from borrowings			$ 818	$ 0
2023 Notes | Senior notes
Debt Instrument [Line Items]
Face value of debt instrument	$ 500
Debt instrument, stated interest rate (as a percent)	4.35%
Proceeds from borrowings	$ 497
Redemption price (as a percent)	101.00%
2023 Euro Notes | Senior notes
Debt Instrument [Line Items]
Face value of debt instrument		$ 318			€ 300
Redemption price (as a percent)		100.50%
2023 Euro Notes | Senior notes | Base Rate
Debt Instrument [Line Items]
Basis spread on variable rate		0.25%

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RETIREMENT BENEFIT PLANS - Retirement Benefits Expense (Income) (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Pension plan | United States pension benefit expense (income)
Retirement benefits plans expense (income)
Service cost	$ 5	$ 8	$ 10	$ 16
Interest cost	35	28	71	48
Expected return on plan assets	(49)	(52)	(98)	(105)
Amortization	1	4	2	12
Total	(8)	(12)	(15)	(29)
Settlements	10	17	19	31
Total expense (income)	2	5	4	2
Pension plan | Foreign Plan
Retirement benefits plans expense (income)
Service cost	10	14	21	30
Interest cost	21	12	42	24
Expected return on plan assets	(30)	(29)	(60)	(60)
Amortization	3	12	4	24
Total	4	9	7	18
Settlements	0	1	1	1
Total expense (income)	4	10	8	19
Postretirement plan
Retirement benefits plans expense (income)
Service cost	0	1	0	1
Interest cost	3	1	5	3
Expected return on plan assets	0	0	0	0
Amortization	(5)	(2)	(9)	(4)
Total	(2)	0	(3)	0
Settlements	0	0	0	0
Total expense (income)	$ (2)	$ 0	$ (3)	$ 0

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RETIREMENT BENEFITS PLANS - Narrative (Details) - Pension plan - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Defined Benefit Plan Disclosure [Line Items]
Settlement loss	$ 10	$ 18	$ 20	$ 32
Increase in accumulated other comprehensive loss		$ 137		$ 90
Decrease in funded status	$ 137		$ 90

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INCOME TAXES (Details)	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Income Tax Disclosure [Abstract]
Effective income tax rate expense (as a percent)	17.00%	16.50%	16.60%	15.30%

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EQUITY - Changes in Shareholders' Equity (Details) - USD ($) shares in Millions, $ in Millions	3 Months Ended				6 Months Ended
	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2023	Jun. 30, 2022
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance at beginning of period	$ 17,485	$ 17,075	$ 16,656	$ 16,451	$ 17,075	$ 16,451
Net income	745	639	601	533	1,384	1,135
Other comprehensive income (loss), net of tax	53	132	(444)	116	185	(328)
Cash dividends paid and accrued	(344)	(352)	(323)	(333)
Issuance of shares under equity-based compensation plans	51	(11)	27	(24)
Changes in noncontrolling interest of consolidated subsidiaries - net	(1)	1		(1)
Changes in noncontrolling interest of consolidated subsidiaries - net			(1)
Repurchase of shares			(100)	(86)
Balance at end of period	17,988	17,485	16,416	16,656	17,988	16,416
Total Eaton shareholders' equity
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance at beginning of period	17,449	17,038	16,620	16,413	17,038	16,413
Net income	744	638	601	532
Other comprehensive income (loss), net of tax	53	132	(444)	116
Cash dividends paid and accrued	(344)	(348)	(323)	(331)
Issuance of shares under equity-based compensation plans	51	(11)	27	(24)
Changes in noncontrolling interest of consolidated subsidiaries - net			(1)
Repurchase of shares			(100)	(86)
Balance at end of period	$ 17,953	$ 17,449	$ 16,380	$ 16,620	$ 17,953	$ 16,380
Ordinary shares
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance at beginning of period (shares)	398.6	397.8	399.0	398.8	397.8	398.8
Balance at beginning of period	$ 4	$ 4	$ 4	$ 4	$ 4	$ 4
Issuance of shares under equity-based compensation plans (shares)	0.4	0.7		0.8
Repurchase of shares (shares)			(0.7)	(0.6)
Balance at end of period (shares)	399.0	398.6	398.3	399.0	399.0	398.3
Balance at end of period	$ 4	$ 4	$ 4	$ 4	$ 4	$ 4
Capital in excess of par value
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance at beginning of period	12,502	12,512	12,427	12,449	12,512	12,449
Issuance of shares under equity-based compensation plans	52	(11)	26	(22)
Changes in noncontrolling interest of consolidated subsidiaries - net			(1)
Balance at end of period	12,554	12,502	12,452	12,427	12,554	12,452
Retained earnings
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance at beginning of period	8,757	8,468	7,707	7,594	8,468	7,594
Net income	744	638	601	532
Cash dividends paid and accrued	(344)	(348)	(323)	(331)
Issuance of shares under equity-based compensation plans	(1)	(1)	1	(2)
Repurchase of shares			(100)	(86)
Balance at end of period	9,156	8,757	7,886	7,707	9,156	7,886
Accumulated other comprehensive loss
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance at beginning of period	(3,814)	(3,946)	(3,517)	(3,633)	(3,946)	(3,633)
Other comprehensive income (loss), net of tax	53	132	(444)	116
Balance at end of period	(3,760)	(3,814)	(3,961)	(3,517)	(3,760)	(3,961)
Shares held in trust
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance at beginning of period	0	(1)	(1)	(1)	(1)	(1)
Issuance of shares under equity-based compensation plans	(1)	1
Balance at end of period	(1)	0	(1)	(1)	(1)	(1)
Noncontrolling interests
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance at beginning of period	36	38	36	38	38	38
Net income	1	1		1
Cash dividends paid and accrued		(4)		(2)
Changes in noncontrolling interest of consolidated subsidiaries - net	(1)	1		(1)
Balance at end of period	$ 36	$ 36	$ 36	$ 36	$ 36	$ 36

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EQUITY - Narrative (Details) - USD ($) shares in Millions		3 Months Ended		6 Months Ended
	Feb. 23, 2022	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Feb. 27, 2019
Class of Stock [Line Items]
Antidilutive shares excluded from net income per share (shares)		0.1		0.1
2019 Program
Class of Stock [Line Items]
Share repurchase program, authorized amount						$ 5,000,000,000
2022 Program
Class of Stock [Line Items]
Share repurchase program, authorized amount	$ 5,000,000,000
Stock repurchase period	3 years
Ordinary shares purchased (shares)			0.7		1.3
Stock repurchased, value			$ 100,000,000		$ 186,000,000

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EQUITY - Changes in Accumulated Other Comprehensive (Loss) Income (Details) - USD ($) $ in Millions	3 Months Ended				6 Months Ended
	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2023	Jun. 30, 2022
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance at beginning of period	$ 17,485	$ 17,075	$ 16,656	$ 16,451	$ 17,075	$ 16,451
Other comprehensive income (loss) before reclassifications					201
Amounts reclassified from Accumulated other comprehensive loss (income)					(16)
Other comprehensive income (loss) attributable to Eaton ordinary shareholders	53	132	(444)	116	185	(328)
Balance at end of period	17,988	17,485	$ 16,416	$ 16,656	17,988	$ 16,416
Accumulated other comprehensive loss
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance at beginning of period		(3,946)			(3,946)
Balance at end of period	(3,760)				(3,760)
Currency translation and related hedging instruments
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance at beginning of period		(3,264)			(3,264)
Other comprehensive income (loss) before reclassifications					182
Amounts reclassified from Accumulated other comprehensive loss (income)					(6)
Other comprehensive income (loss) attributable to Eaton ordinary shareholders					176
Balance at end of period	(3,088)				(3,088)
Pensions and other postretirement benefits
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance at beginning of period		(810)			(810)
Other comprehensive income (loss) before reclassifications					(19)
Amounts reclassified from Accumulated other comprehensive loss (income)					15
Other comprehensive income (loss) attributable to Eaton ordinary shareholders					(5)
Balance at end of period	(815)				(815)
Cash flow hedges
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance at beginning of period		$ 129			129
Other comprehensive income (loss) before reclassifications					39
Amounts reclassified from Accumulated other comprehensive loss (income)					(26)
Other comprehensive income (loss) attributable to Eaton ordinary shareholders					14
Balance at end of period	$ 143				$ 143

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EQUITY - Reclassifications Out of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Income before income taxes	$ 898	$ 720	$ 1,660	$ 1,339
Income tax benefit (expense)	(153)	(119)	(276)	(205)
Net income attributable to Eaton ordinary shareholders	$ 744	$ 601	1,382	$ 1,133
Reclassification out of Accumulated Other Comprehensive Income
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Net income attributable to Eaton ordinary shareholders			16
Gains and (losses) on net investment hedges (amount excluded from effectiveness testing) | Reclassification out of Accumulated Other Comprehensive Income
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Income before income taxes			6
Income tax benefit (expense)			0
Net income attributable to Eaton ordinary shareholders			6
Pensions and other postretirement benefits | Reclassification out of Accumulated Other Comprehensive Income
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Income before income taxes			(17)
Income tax benefit (expense)			2
Net income attributable to Eaton ordinary shareholders			(15)
Gains and (losses) on cash flow hedges | Reclassification out of Accumulated Other Comprehensive Income
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Income tax benefit (expense)			(7)
Net income attributable to Eaton ordinary shareholders			26
Gains and (losses) on cash flow hedges | Reclassification out of Accumulated Other Comprehensive Income | Fixed-to-floating interest rate swaps
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Income before income taxes			6
Gains and (losses) on cash flow hedges | Reclassification out of Accumulated Other Comprehensive Income | Currency exchange contracts
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Income before income taxes			$ 26

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EQUITY - Calculation of Net Income per Ordinary Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Calculation of net income per ordinary share attributable to ordinary shareholders
Net income attributable to Eaton ordinary shareholders	$ 744	$ 601	$ 1,382	$ 1,133
Weighted-average number of ordinary shares outstanding - diluted (shares)	400.7	400.7	400.6	401.2
Less dilutive effect of equity-based compensation (shares)	1.8	1.7	1.9	2.1
Weighted-average number of ordinary shares outstanding - basic (shares)	398.9	399.0	398.7	399.1
Net income per share attributable to Eaton ordinary shareholders
Diluted (USD per share)	$ 1.86	$ 1.50	$ 3.45	$ 2.82
Basic (USD per share)	$ 1.86	$ 1.51	$ 3.47	$ 2.84

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FAIR VALUE MEASUREMENTS - Financial Instruments at Fair Value (Details) - USD ($) $ in Millions	Jun. 30, 2023	Dec. 31, 2022
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items]
Cash	$ 353	$ 294
Short-term investments	977	261
Net derivative contracts	46	29
Contingent future payments from acquisition of Green Motion	(46)	(44)
Level 1
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items]
Cash	353	294
Short-term investments	977	261
Net derivative contracts	0	0
Contingent future payments from acquisition of Green Motion	0	0
Level 2
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items]
Cash	0	0
Short-term investments	0	0
Net derivative contracts	46	29
Contingent future payments from acquisition of Green Motion	0	0
Level 3
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items]
Cash	0	0
Short-term investments	0	0
Net derivative contracts	0	0
Contingent future payments from acquisition of Green Motion	$ (46)	$ (44)

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FAIR VALUE MEASUREMENTS - Narrative (Details) - USD ($) $ in Millions	Mar. 22, 2021	Jun. 30, 2023	Dec. 31, 2022
Business Acquisition [Line Items]
Contingent future payments from acquisition		$ 46	$ 44
Long-term debt and current portion of long term debt, carrying value		9,206	8,331
Long-term debt and current portion of long-term debt, fair value		8,622	$ 7,625
Green Motion, SA
Business Acquisition [Line Items]
Total consideration to be transferred for acquisition	$ 106
Cash paid at closing	49
Contingent future payments from acquisition	57	$ 46
Fair value of contingent future payments	$ 114

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DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES - Narrative (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2023	Dec. 31, 2022
Derivative [Line Items]
Proportion of intercompany balance sheet exposure (as a percent)	100.00%
Cash flow hedge gain (loss) to be reclassified within the next twelve months	$ 36
Forward Starting Floating-to-Fixed Interest Rate Swap
Derivative [Line Items]
Pre-tax portion of fair value, gains (losses)	9
Non-derivative net investment hedge
Derivative [Line Items]
Foreign currency note payable, noncurrent, after-tax	3,092	$ 2,711
Net investment hedging | Currency exchange contracts
Derivative [Line Items]
Pre-tax portion of fair value, gains (losses)	$ 18

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DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES - Derivative Financial Instrument Recognized in the Consolidated Balance Sheet (Details) - USD ($) $ in Millions	Jun. 30, 2023	Dec. 31, 2022
Derivatives designated as hedges | Other current assets
Derivatives, Fair Value [Line Items]
Derivative asset designated as hedging instrument	$ 55	$ 39
Derivatives designated as hedges | Other noncurrent assets
Derivatives, Fair Value [Line Items]
Derivative asset designated as hedging instrument	2	2
Derivatives designated as hedges | Other current liabilities
Derivatives, Fair Value [Line Items]
Derivative liability designated as hedging instrument	17	19
Derivatives designated as hedges | Other noncurrent liabilities
Derivatives, Fair Value [Line Items]
Derivative liability designated as hedging instrument	3	9
Derivatives designated as hedges | Cash flow hedging | Currency exchange contracts
Derivatives, Fair Value [Line Items]
Notional amount	990	1,240
Derivatives designated as hedges | Cash flow hedging | Currency exchange contracts | Other current assets
Derivatives, Fair Value [Line Items]
Derivative asset designated as hedging instrument	52	35
Derivatives designated as hedges | Cash flow hedging | Currency exchange contracts | Other noncurrent assets
Derivatives, Fair Value [Line Items]
Derivative asset designated as hedging instrument	2	2
Derivatives designated as hedges | Cash flow hedging | Currency exchange contracts | Other current liabilities
Derivatives, Fair Value [Line Items]
Derivative liability designated as hedging instrument	16	17
Derivatives designated as hedges | Cash flow hedging | Currency exchange contracts | Other noncurrent liabilities
Derivatives, Fair Value [Line Items]
Derivative liability designated as hedging instrument	3	9
Derivatives designated as hedges | Cash flow hedging | Commodity contracts
Derivatives, Fair Value [Line Items]
Notional amount	27	64
Derivatives designated as hedges | Cash flow hedging | Commodity contracts | Other current assets
Derivatives, Fair Value [Line Items]
Derivative asset designated as hedging instrument	1	4
Derivatives designated as hedges | Cash flow hedging | Commodity contracts | Other noncurrent assets
Derivatives, Fair Value [Line Items]
Derivative asset designated as hedging instrument	0	0
Derivatives designated as hedges | Cash flow hedging | Commodity contracts | Other current liabilities
Derivatives, Fair Value [Line Items]
Derivative liability designated as hedging instrument	1	2
Derivatives designated as hedges | Cash flow hedging | Commodity contracts | Other noncurrent liabilities
Derivatives, Fair Value [Line Items]
Derivative liability designated as hedging instrument	0	0
Derivatives designated as hedges | Net investment hedging | Currency exchange contracts
Derivatives, Fair Value [Line Items]
Notional amount	557
Derivatives designated as hedges | Net investment hedging | Currency exchange contracts | Other current assets
Derivatives, Fair Value [Line Items]
Derivative asset designated as hedging instrument	3
Derivatives designated as hedges | Net investment hedging | Currency exchange contracts | Other noncurrent assets
Derivatives, Fair Value [Line Items]
Derivative asset designated as hedging instrument	0
Derivatives designated as hedges | Net investment hedging | Currency exchange contracts | Other current liabilities
Derivatives, Fair Value [Line Items]
Derivative liability designated as hedging instrument	0
Derivatives designated as hedges | Net investment hedging | Currency exchange contracts | Other noncurrent liabilities
Derivatives, Fair Value [Line Items]
Derivative liability designated as hedging instrument	$ 0
Derivative, remaining maturity	3 months
Derivatives not designated as hedges | Currency exchange contracts
Derivatives, Fair Value [Line Items]
Notional amount	$ 4,891	4,683
Derivatives not designated as hedges | Currency exchange contracts | Other current assets
Derivatives, Fair Value [Line Items]
Derivative asset not designated as hedging instrument	19	30
Derivatives not designated as hedges | Currency exchange contracts | Other current liabilities
Derivatives, Fair Value [Line Items]
Derivative liability not designated as hedging instrument	$ 10	$ 14
Minimum | Derivatives designated as hedges | Cash flow hedging | Currency exchange contracts
Derivatives, Fair Value [Line Items]
Derivative, remaining maturity	1 month	1 month
Minimum | Derivatives designated as hedges | Cash flow hedging | Commodity contracts
Derivatives, Fair Value [Line Items]
Derivative, remaining maturity	1 month	1 month
Minimum | Derivatives not designated as hedges | Currency exchange contracts
Derivatives, Fair Value [Line Items]
Derivative, remaining maturity	1 month	1 month
Maximum | Derivatives designated as hedges | Cash flow hedging | Currency exchange contracts
Derivatives, Fair Value [Line Items]
Derivative, remaining maturity	31 months	36 months
Maximum | Derivatives designated as hedges | Cash flow hedging | Commodity contracts
Derivatives, Fair Value [Line Items]
Derivative, remaining maturity	12 months	12 months
Maximum | Derivatives not designated as hedges | Currency exchange contracts
Derivatives, Fair Value [Line Items]
Derivative, remaining maturity	7 months	12 months

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DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES - Volume of Outstanding Commodity Contracts (Details) - Commodity contracts lb in Millions	6 Months Ended
	Jun. 30, 2023 lb ozt
Aluminum
Derivative [Line Items]
Derivative, outstanding commodity contract | lb	4
Aluminum | Minimum
Derivative [Line Items]
Derivative, term of contract	1 month
Aluminum | Maximum
Derivative [Line Items]
Derivative, term of contract	11 months
Copper
Derivative [Line Items]
Derivative, outstanding commodity contract | lb	3
Copper | Minimum
Derivative [Line Items]
Derivative, term of contract	1 month
Copper | Maximum
Derivative [Line Items]
Derivative, term of contract	7 months
Gold
Derivative [Line Items]
Derivative, outstanding commodity contract | ozt	1,587
Gold | Minimum
Derivative [Line Items]
Derivative, term of contract	1 month
Gold | Maximum
Derivative [Line Items]
Derivative, term of contract	12 months
Silver
Derivative [Line Items]
Derivative, outstanding commodity contract | ozt	289,724
Silver | Minimum
Derivative [Line Items]
Derivative, term of contract	1 month
Silver | Maximum
Derivative [Line Items]
Derivative, term of contract	7 months

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DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES - Amounts Recorded on Balance Sheet Related to Fixed-to-Floating Interest Rate Swaps (Details) - USD ($) $ in Millions	Jun. 30, 2023	Dec. 31, 2022
Interest rate swap
Derivative [Line Items]
Carrying amount of the hedged assets (liabilities)	$ (713)	$ (713)
Long-term debt
Derivative [Line Items]
Discontinued hedge, cumulative adjustment	(45)	(48)
Long-term debt | Interest rate swap
Derivative [Line Items]
Cumulative amount of fair value hedging adjustment included in the carrying amount of the hedged asset (liabilities)	$ (45)	$ (48)

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DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES - Impact of Derivatives on Consolidated Statement of Income (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Derivative [Line Items]
Net sales	$ 5,866	$ 5,212	$ 11,349	$ 10,054
Cost of products sold	3,747	3,505	7,346	6,774
Interest expense - net	42	31	91	63
Cash flow hedging | Net sales | Forward starting floating-to-fixed interest rate swaps
Derivative [Line Items]
Gain (loss) on hedged item	0		0
Gain (loss) on hedging instrument	0		0
Cash flow hedging | Net sales | Currency exchange contracts
Derivative [Line Items]
Gain (loss) on hedged item	(1)	2	1	4
Gain (loss) on hedging instrument	1	(2)	(1)	(4)
Cash flow hedging | Net sales | Commodity contracts
Derivative [Line Items]
Gain (loss) on hedged item		0		0
Gain (loss) on hedging instrument		0		0
Cash flow hedging | Cost of products sold | Forward starting floating-to-fixed interest rate swaps
Derivative [Line Items]
Gain (loss) on hedged item	0		0
Gain (loss) on hedging instrument	0		0
Cash flow hedging | Cost of products sold | Currency exchange contracts
Derivative [Line Items]
Gain (loss) on hedged item	(15)	(4)	(30)	(7)
Gain (loss) on hedging instrument	15	4	30	7
Cash flow hedging | Cost of products sold | Commodity contracts
Derivative [Line Items]
Gain (loss) on hedged item		(1)		(2)
Gain (loss) on hedging instrument		1		2
Cash flow hedging | Interest expense - net | Forward starting floating-to-fixed interest rate swaps
Derivative [Line Items]
Gain (loss) on hedged item	(3)		(6)
Gain (loss) on hedging instrument	3		6
Cash flow hedging | Interest expense - net | Currency exchange contracts
Derivative [Line Items]
Gain (loss) on hedged item	0	0	0	0
Gain (loss) on hedging instrument	$ 0	0	$ 0	0
Cash flow hedging | Interest expense - net | Commodity contracts
Derivative [Line Items]
Gain (loss) on hedged item		0		0
Gain (loss) on hedging instrument		$ 0		0
Fair value hedging | Net sales | Interest rate swap
Derivative [Line Items]
Gain (loss) on hedged item				0
Gain (loss) on hedging instrument				0
Fair value hedging | Cost of products sold | Interest rate swap
Derivative [Line Items]
Gain (loss) on hedged item				0
Gain (loss) on hedging instrument				0
Fair value hedging | Interest expense - net | Interest rate swap
Derivative [Line Items]
Gain (loss) on hedged item				8
Gain (loss) on hedging instrument				$ (8)

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DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES - Impact of Derivatives Not Designated as Hedges (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Derivative Instruments, Gain (Loss) [Line Items]
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net	$ 6	$ (41)	$ 17	$ (48)
Currency exchange contracts | Interest expense - net
Derivative Instruments, Gain (Loss) [Line Items]
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net	6	(25)	17	(33)
Commodity contracts | Other expense (income) - net and Cost of products sold
Derivative Instruments, Gain (Loss) [Line Items]
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net	$ 0	$ (16)	$ 0	$ (15)

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DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES - Amounts Recognized in Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Gain (loss) recognized in other comprehensive income (loss)
Total, gain (loss) on derivative and net investment hedge recognized in other comprehensive (loss) income	$ 50	$ 270	$ 11	$ 461
Gain (loss) reclassified from Accumulated other comprehensive loss
Total, gain (loss) on derivative and net investment hedge reclassified from accumulated other comprehensive (loss) income	22	5	38	6
Interest expense - net | Net investment hedging
Gain (loss) recognized in other comprehensive income (loss)
Non-derivative designated as net investment hedges	(3)	179	(66)	241
Gain (loss) reclassified from Accumulated other comprehensive loss
Gain (loss) on sale of business	0	0	0	0
Forward Starting Floating-to-Fixed Interest Rate Swap
Gain (loss) recognized in other comprehensive income (loss)
Derivatives designated as cash flow hedges			9
Forward Starting Floating-to-Fixed Interest Rate Swap | Interest expense - net | Cash flow hedging
Gain (loss) recognized in other comprehensive income (loss)
Derivatives designated as cash flow hedges	1	113	1	237
Gain (loss) reclassified from Accumulated other comprehensive loss
Derivatives designated as cash flow hedges	3	0	6	0
Currency exchange contracts | Net investment hedging
Gain (loss) recognized in other comprehensive income (loss)
Derivatives designated as cash flow hedges			18
Currency exchange contracts | Net investment hedging | Derivatives designated as hedges
Gain (loss) recognized in other comprehensive income (loss)
Effective portion	32	0	18	0
Amount excluded from effectiveness testing	4	0	9	0
Gain (loss) reclassified from Accumulated other comprehensive loss
Interest expense - net	4	0	6	0
Gain (loss) on sale of business	0	0	0	0
Currency exchange contracts | Net sales and Cost of products sold | Cash flow hedging
Gain (loss) recognized in other comprehensive income (loss)
Derivatives designated as cash flow hedges	18	(10)	49	(10)
Gain (loss) reclassified from Accumulated other comprehensive loss
Derivatives designated as cash flow hedges	15	4	26	4
Commodity contracts | Cost of products sold | Cash flow hedging
Gain (loss) recognized in other comprehensive income (loss)
Derivatives designated as cash flow hedges	(2)	(12)	0	(7)
Gain (loss) reclassified from Accumulated other comprehensive loss
Derivatives designated as cash flow hedges	$ 0	$ 1	$ 0	$ 2

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RESTRUCTURING CHARGES - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended		12 Months Ended			39 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020	Jun. 30, 2023
Restructuring Cost and Reserve [Line Items]
Restructuring charges	$ 29	$ 10	$ 39	$ 28	$ 33	$ 78	$ 214
COVID-19
Restructuring Cost and Reserve [Line Items]
Restructuring charges								$ 364
Estimated charges	$ 380		$ 380					$ 380

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RESTRUCTURING CHARGES - Restructuring Program Charges (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Restructuring Cost and Reserve [Line Items]
Total before income taxes	$ 29	$ 10	$ 39	$ 28	$ 33	$ 78	$ 214
Income tax benefit	6	2	8	6
Total after income taxes	$ 24	$ 8	$ 31	$ 22
Per ordinary share - diluted (USD per share)	$ 0.06	$ 0.02	$ 0.08	$ 0.05
Workforce reductions
Restructuring Cost and Reserve [Line Items]
Total before income taxes	$ 15	$ 2	$ 17	$ 7	(13)	21	172
Plant closing and other
Restructuring Cost and Reserve [Line Items]
Total before income taxes	$ 15	$ 8	$ 22	$ 21	$ 47	$ 57	$ 42

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RESTRUCTURING CHARGES - Restructuring Program Charges Related to Segments (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Restructuring Cost and Reserve [Line Items]
Restructuring charges	$ 29	$ 10	$ 39	$ 28	$ 33	$ 78	$ 214
Operating segments | Electrical Americas
Restructuring Cost and Reserve [Line Items]
Restructuring charges	1	5	3	10
Operating segments | Electrical Global
Restructuring Cost and Reserve [Line Items]
Restructuring charges	14	1	18	6
Operating segments | Aerospace
Restructuring Cost and Reserve [Line Items]
Restructuring charges	2	2	3	5
Operating segments | Vehicle
Restructuring Cost and Reserve [Line Items]
Restructuring charges	1	3	3	6
Operating segments | eMobility
Restructuring Cost and Reserve [Line Items]
Restructuring charges	6	0	7	0
Corporate
Restructuring Cost and Reserve [Line Items]
Restructuring charges	$ 5	$ 0	$ 6	$ 2

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RESTRUCTURING CHARGES - Liabilities Related to Restructuring (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Restructuring Reserve [Roll Forward]
Balance at beginning of period			$ 41	$ 104	$ 104	$ 142	$ 0
Liability recognized, net	$ 29	$ 10	39	28	33	78	214
Payments, utilization and translation			(30)		(96)	(116)	(72)
Balance at end of period	51		51		41	104	142
Restructuring Reserve, Accrual Adjustment					30
Workforce reductions
Restructuring Reserve [Roll Forward]
Balance at beginning of period			38	96	96	139	0
Liability recognized, net	15	2	17	7	(13)	21	172
Payments, utilization and translation			(10)		(45)	(64)	(33)
Balance at end of period	45		45		38	96	139
Plant closing and other
Restructuring Reserve [Roll Forward]
Balance at beginning of period			4	8	8	3	0
Liability recognized, net	15	$ 8	22	$ 21	47	57	42
Payments, utilization and translation			(20)		(51)	(52)	(39)
Balance at end of period	$ 6		$ 6		$ 4	$ 8	$ 3

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BUSINESS SEGMENT INFORMATION (Details) - USD ($) $ in Millions	3 Months Ended				6 Months Ended		12 Months Ended
	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Segment Reporting Information, Profit (Loss) [Abstract]
Net sales	$ 5,866		$ 5,212		$ 11,349	$ 10,054
Intangible asset amortization expense	(113)		(122)		(237)	(250)
Interest expense - net	(42)		(31)		(91)	(63)
Pension and other postretirement benefits income	11		9		22	28
Restructuring program charges	(29)		(10)		(39)	(28)	$ (33)	$ (78)	$ (214)
Other expense - net	(192)		(171)		(340)	(302)
Income before income taxes	898		720		1,660	1,339
Income tax expense	153		119		276	205
Net income	745	$ 639	601	$ 533	1,384	1,135
Less net income for noncontrolling interests	(1)		0		(3)	(1)
Net income attributable to Eaton ordinary shareholders	744		601		1,382	1,133
Electrical Americas
Segment Reporting Information, Profit (Loss) [Abstract]
Net sales	2,538		2,131		4,832	4,022
Electrical Global
Segment Reporting Information, Profit (Loss) [Abstract]
Net sales	1,569		1,495		3,069	2,932
Aerospace
Segment Reporting Information, Profit (Loss) [Abstract]
Net sales	848		742		1,650	1,459
Vehicle
Segment Reporting Information, Profit (Loss) [Abstract]
Net sales	751		708		1,490	1,379
eMobility
Segment Reporting Information, Profit (Loss) [Abstract]
Net sales	161		136		308	262
Operating segments
Segment Reporting Information, Profit (Loss) [Abstract]
Net sales	5,866		5,212		11,349	10,054
Segment operating profit (loss)	1,264		1,046		2,346	1,955
Operating segments | Electrical Americas
Segment Reporting Information, Profit (Loss) [Abstract]
Net sales	2,538		2,131		4,832	4,022
Segment operating profit (loss)	669		495		1,194	857
Restructuring program charges	(1)		(5)		(3)	(10)
Operating segments | Electrical Global
Segment Reporting Information, Profit (Loss) [Abstract]
Net sales	1,569		1,495		3,069	2,932
Segment operating profit (loss)	290		282		564	561
Restructuring program charges	(14)		(1)		(18)	(6)
Operating segments | Aerospace
Segment Reporting Information, Profit (Loss) [Abstract]
Net sales	848		742		1,650	1,459
Segment operating profit (loss)	191		163		371	321
Restructuring program charges	(2)		(2)		(3)	(5)
Operating segments | Vehicle
Segment Reporting Information, Profit (Loss) [Abstract]
Net sales	751		708		1,490	1,379
Segment operating profit (loss)	115		108		222	221
Restructuring program charges	(1)		(3)		(3)	(6)
Operating segments | eMobility
Segment Reporting Information, Profit (Loss) [Abstract]
Net sales	161		136		308	262
Segment operating profit (loss)	(1)		(2)		(5)	(5)
Restructuring program charges	(6)		0		(7)	0
Corporate
Segment Reporting Information, Profit (Loss) [Abstract]
Restructuring program charges	$ (5)		$ 0		$ (6)	$ (2)