XML 58 R43.htm IDEA: XBRL DOCUMENT v3.25.0.1
INCOME TAXES (Tables)
 12 Months Ended
Dec. 31, 2024
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)202420232022
Ireland$183 $(3)$198 
Foreign4,383 3,830 2,713 
Total income before income taxes$4,566 $3,827 $2,911 
Schedule of Income Tax Expense (Benefit)
Income tax expense (benefit)
(In millions)202420232022
Current
Ireland$128 $42 $3 
Foreign794 744 570 
Total current income tax expense922 786 573 
Deferred
Ireland(16)1 13 
Foreign(138)(183)(141)
Total deferred income tax expense (benefit)(154)(182)(128)
Total income tax expense$768 $604 $445 
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:
202420232022
Income taxes at the applicable statutory rate25.0 %25.0 %25.0 %
Ireland operations
Ireland tax on trading income(0.9)%(1.3)%(1.3)%
Nondeductible interest expense0.9 %2.6 %1.0 %
Ireland Other - net1.2 %(0.2)%(0.5)%
Foreign operations
Earnings taxed at other than the applicable statutory tax rate(6.7)%(9.9)%(10.2)%
Other items(0.2)%2.2 %1.6 %
Worldwide operations
Adjustments to tax liabilities0.1 %(0.2)%(0.4)%
Adjustments to valuation allowances(2.6)%(2.4)%0.1 %
Effective income tax expense rate16.8 %15.8 %15.3 %
Schedule of Worldwide Income Tax Payments
Worldwide income tax payments, net of tax refunds, are as follows:
(In millions)
2024$752 
2023727 
2022393 
Schedule of Components of Deferred Income Taxes
Components of noncurrent deferred income taxes are as follows:
December 31
20242023
(In millions)Noncurrent assets and liabilities
Accruals and other adjustments
Employee benefits$295 $328 
Depreciation and amortization(791)(929)
Other accruals and adjustments460 408 
Ireland income tax loss carryforwards1 2 
Foreign income tax loss carryforwards3,674 3,878 
Foreign income tax credit carryforwards252 247 
Valuation allowance for income tax loss and income tax credit carryforwards(3,556)(3,828)
Other valuation allowances— (50)
Total deferred income taxes$334 $56 
Schedule of Foreign Tax Loss Carryforwards and Income Tax Credit Carryforwards These carryforwards and their respective expiration dates are summarized below:
(In millions)2025
through
2029		2030
through
2034		2035
through
2039		2040
through
2049		Not
subject to
expiration		 
Valuation
allowance
Ireland income tax loss carryforwards$— $— $— $— $9 $— 
Ireland deferred income tax assets for income tax loss
   carryforwards		— — — — 1 (1)
Foreign income tax loss carryforwards40 462 11,172 122 5,627 — 
Foreign deferred income tax assets for income tax loss carryforwards
11 112 2,670 30 853 (3,417)
Foreign deferred income tax assets for income tax loss carryforwards after ASU 2013-11
10 112 2,670 30 852 (3,417)
Foreign income tax credit carryforwards
176 39 35 4 40 (138)
Foreign income tax credit carryforwards after ASU 2013-11
145 31 32 4 40 (138)
Schedule of Unrecognized Tax Benefits
A summary of gross unrecognized income tax benefits is as follows:
(In millions)202420232022
Balance at January 1$1,300 $1,235 $1,120 
Increases and decreases as a result of positions taken during prior years
Other increases, including currency translation22 42 36 
Other decreases, including currency translation(22)(5)(16)
Increases related to acquired businesses— — 10 
Increases as a result of positions taken during the current year93 86 97 
Decreases relating to settlements with tax authorities(18)(6)— 
Decreases as a result of a lapse of the applicable statute of limitations(14)(52)(12)
Balance at December 31$1,361 $1,300 $1,235