XML 53 R38.htm IDEA: XBRL DOCUMENT v3.24.0.1
INCOME TAXES (Tables)
 12 Months Ended
Dec. 31, 2023
Income Tax Disclosure [Abstract]  
Schedule of Income (Loss) before Income Taxes
Eaton Corporation plc is domiciled in Ireland. Income (loss) before income taxes and income tax expense (benefit) are summarized below based on the geographic location of the operation to which such earnings and income taxes are attributable.
Income (loss) before income taxes
(In millions)202320222021
Ireland$(3)$198 $153 
Foreign3,830 2,713 2,743 
Total income before income taxes$3,827 $2,911 $2,896 
Schedule of Income Tax Expense (Benefit)
Income tax expense (benefit)
(In millions)202320222021
Current
Ireland$42 $3 $50 
Foreign744 570 730 
Total current income tax expense786 573 780 
Deferred
Ireland1 13 (2)
Foreign(183)(141)(28)
Total deferred income tax expense (benefit)(182)(128)(30)
Total income tax expense$604 $445 $750 
Schedule of Reconciliation of Effective Income Tax Rate
Reconciliations of income taxes from the Ireland national statutory rate of 25% to the consolidated effective income tax rate are as follows:
202320222021
Income taxes at the applicable statutory rate25.0 %25.0 %25.0 %
Ireland operations
Ireland tax on trading income(1.3)%(1.3)%(0.7)%
Nondeductible interest expense2.6 %1.0 %0.6 %
Ireland Other - net(0.2)%(0.5)%(0.2)%
Foreign operations
Tax impact on sale of businesses
— %— %9.1 %
Earnings taxed at other than the applicable statutory tax rate(9.9)%(10.2)%(8.0)%
Other items2.2 %1.6 %(0.1)%
Worldwide operations
Adjustments to tax liabilities(0.2)%(0.4)%0.2 %
Adjustments to valuation allowances(2.4)%0.1 %— %
Effective income tax expense rate15.8 %15.3 %25.9 %
Schedule of Worldwide Income Tax Payments
Worldwide income tax payments, net of tax refunds, are as follows:
(In millions)
2023$727 
2022393 
2021753 
Schedule of Components of Deferred Income Taxes
Components of noncurrent deferred income taxes are as follows:
December 31
20232022
(In millions)Noncurrent assets and liabilities
Accruals and other adjustments
Employee benefits$328 $266 
Depreciation and amortization(929)(1,067)
Other accruals and adjustments408 397 
Ireland income tax loss carryforwards2 1 
Foreign income tax loss carryforwards3,878 4,151 
Foreign income tax credit carryforwards247 280 
Valuation allowance for income tax loss and income tax credit carryforwards(3,828)(4,184)
Other valuation allowances(50)(44)
Total deferred income taxes$56 $(200)
Schedule of Foreign Tax Loss Carryforwards and Income Tax Credit Carryforwards These carryforwards and their respective expiration dates are summarized below:
(In millions)
2024
through
2028
2029
through
2033
2034
through
2038
2039
through
2048
Not
subject to
expiration		 
Valuation
allowance
Ireland income tax loss carryforwards$— $— $— $— $10 $— 
Ireland deferred income tax assets for income tax loss
   carryforwards		— — — — 2 (1)
Foreign income tax loss carryforwards42 6 11,605 111 6,619 — 
Foreign deferred income tax assets for income tax loss carryforwards
14 3 2,898 30 942 (3,683)
Foreign deferred income tax assets for income tax loss carryforwards after ASU 2013-11
9 2 2,897 30 940 (3,683)
Foreign income tax credit carryforwards
208 26 45 — 35 (145)
Foreign income tax credit carryforwards after ASU 2013-11
153 16 43 — 35 (145)
Schedule of Gross Unrecognized Income Tax Benefits
A summary of gross unrecognized income tax benefits is as follows:
(In millions)202320222021
Balance at January 1$1,235 $1,120 $1,036 
Increases and decreases as a result of positions taken during prior years
Transfers from valuation allowances— — 6 
Other increases, including currency translation42 36 22 
Other decreases, including currency translation(5)(16)(10)
Increases related to acquired businesses— 10 12 
Increases as a result of positions taken during the current year86 97 75 
Decreases relating to settlements with tax authorities(6)— (11)
Decreases as a result of a lapse of the applicable statute of limitations(52)(12)(10)
Balance at December 31$1,300 $1,235 $1,120