Eaton (ETN) 10-Q 30 Apr 24 2024 Q1 Quarterly report Financial data

Cover Page

Cover Page shares in Millions	3 Months Ended
	Mar. 31, 2024 shares
Cover [Abstract]
Document Type	10-Q
Document Period End Date	Mar. 31, 2024
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	399.8
Entity Central Index Key	0001551182
Amendment Flag	false
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q1
Current Fiscal Year End Date	--12-31
Document Quarterly Report	true
Document Transition Report	false

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Millions, $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Income Statement [Abstract]
Net sales	$ 5,943	$ 5,483
Cost of products sold	3,725	3,599
Selling and administrative expense	1,025	904
Research and development expense	189	179
Interest expense - net	30	50
Other income - net	(26)	(11)
Income before income taxes	1,001	762
Income tax expense	179	123
Net income	822	639
Less net income for noncontrolling interests	(1)	(1)
Net income attributable to Eaton ordinary shareholders	$ 821	$ 638
Net income per share attributable to Eaton ordinary shareholders
Diluted (USD per share)	$ 2.04	$ 1.59
Basic (USD per share)	$ 2.05	$ 1.60
Weighted-average number of ordinary shares outstanding
Diluted (in shares)	401.9	400.5
Basic (in shares)	399.9	398.5
Cash dividends declared per ordinary share (USD per share)	$ 0.94	$ 0.86

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Statement of Comprehensive Income [Abstract]
Net income	$ 822	$ 639
Less net income for noncontrolling interests	(1)	(1)
Net income attributable to Eaton ordinary shareholders	821	638
Other comprehensive income (loss), net of tax
Currency translation and related hedging instruments	(53)	119
Pensions and other postretirement benefits	17	(2)
Cash flow hedges	(4)	15
Other comprehensive income (loss) attributable to Eaton ordinary shareholders	(40)	132
Total comprehensive income attributable to Eaton ordinary shareholders	$ 781	$ 770

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions	Mar. 31, 2024	Dec. 31, 2023
Current assets
Cash	$ 473	$ 488
Short-term investments	1,969	2,121
Accounts receivable - net	4,674	4,475
Inventory	3,868	3,739
Prepaid expenses and other current assets	870	851
Total current assets	11,853	11,675
Property, plant and equipment
Land and buildings	2,215	2,241
Machinery and equipment	6,577	6,497
Gross property, plant and equipment	8,792	8,738
Accumulated depreciation	(5,234)	(5,208)
Net property, plant and equipment	3,558	3,530
Other noncurrent assets
Goodwill	14,877	14,977
Other intangible assets	4,975	5,091
Operating lease assets	722	648
Deferred income taxes	481	458
Other assets	2,070	2,052
Total assets	38,535	38,432
Current liabilities
Short-term debt	1	8
Current portion of long-term debt	994	1,017
Accounts payable	3,400	3,365
Accrued compensation	492	676
Other current liabilities	2,726	2,680
Total current liabilities	7,613	7,747
Noncurrent liabilities
Long-term debt	8,192	8,244
Pension liabilities	730	768
Other postretirement benefits liabilities	177	180
Operating lease liabilities	601	533
Deferred income taxes	419	402
Other noncurrent liabilities	1,478	1,489
Total noncurrent liabilities	11,597	11,616
Shareholders’ equity
Ordinary shares (399.8 million outstanding in 2024 and 399.4 million in 2023)	4	4
Capital in excess of par value	12,630	12,634
Retained earnings	10,605	10,305
Accumulated other comprehensive loss	(3,946)	(3,906)
Shares held in trust	(1)	(1)
Total Eaton shareholders’ equity	19,292	19,036
Noncontrolling interests	34	33
Total equity	19,326	19,069
Total liabilities and equity	$ 38,535	$ 38,432

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - shares shares in Millions	Mar. 31, 2024	Dec. 31, 2023
Statement of Financial Position [Abstract]
Ordinary shares outstanding (in shares)	399.8	399.4

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Operating activities
Net income	$ 822	$ 639
Adjustments to reconcile to net cash provided by operating activities
Depreciation and amortization	225	238
Deferred income taxes	32	17
Pension and other postretirement benefits expense	4	4
Contributions to pension plans	(46)	(29)
Contributions to other postretirement benefits plans	(4)	(5)
Changes in working capital	(524)	(498)
Other - net	(34)	(31)
Net cash provided by operating activities	475	335
Investing activities
Capital expenditures for property, plant and equipment	(183)	(126)
Proceeds from sales of property, plant and equipment	58	3
Sales (purchases) of short-term investments - net	150	(27)
Proceeds from settlement of currency exchange contracts not designated as hedges - net	11	41
Other - net	(3)	(14)
Net cash provided by (used in) investing activities	33	(124)
Financing activities
Proceeds from borrowings	0	318
Payments on borrowings	(4)	(3)
Short-term debt, net	(7)	(236)
Cash dividends paid	(368)	(334)
Exercise of employee stock options	41	17
Repurchase of shares	(138)	0
Employee taxes paid from shares withheld	(56)	(40)
Other - net	(4)	(1)
Net cash used in financing activities	(536)	(281)
Effect of currency on cash	13	11
Total decrease in cash	(15)	(59)
Cash at the beginning of the period	488	294
Cash at the end of the period	$ 473	$ 235

BASIS OF PRESENTATION

BASIS OF PRESENTATION	3 Months Ended
	Mar. 31, 2024
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 2023 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. Recently Issued Accounting Pronouncements In November 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures (ASU 2023-07). This accounting standard requires additional segment disclosures on an annual and interim basis, including significant segment expenses that are regularly provided to the chief operating decision maker. The standard does not change how operating segments and reportable segments are determined. ASU 2023-07 is effective for annual reporting periods beginning after December 15, 2023 and interim reporting periods beginning after December 15, 2024. The standard is required to be applied retrospectively to all periods presented in the consolidated financial statements. Eaton plans to adopt the standard for the year ended December 31, 2024. The Company is evaluating the impact of ASU 2023-07 and expects the standard will only impact its segment disclosures with no material impact to the consolidated financial statements. In December 2023, the FASB issued Accounting Standards Update 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures (ASU 2023-09). This accounting standard requires disaggregated income tax disclosures on an annual basis, including information on the Company’s effective income tax rate reconciliation and income taxes paid. ASU 2023-09 is effective for annual reporting periods beginning after December 15, 2024, and may be applied prospectively or retrospectively. The Company is evaluating the impact of ASU 2023-09 and expects the standard will only impact its income taxes disclosures with no material impact to the consolidated financial statements.

INVESTMENT IN ASSOCIATE COMPANY

INVESTMENT IN ASSOCIATE COMPANY	3 Months Ended
	Mar. 31, 2024
Business Combination and Asset Acquisition [Abstract]
INVESTMENT IN ASSOCIATE COMPANY	INVESTMENT IN ASSOCIATE COMPANY 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.

REVENUE RECOGNITION

REVENUE RECOGNITION	3 Months Ended
	Mar. 31, 2024
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 March 31 (In millions) 2024 2023 Electrical Americas Products $ 733 $ 716 Systems 1,957 1,578 Total $ 2,690 $ 2,294 Electrical Global Products $ 844 $ 882 Systems 656 618 Total $ 1,500 $ 1,500 Aerospace Original Equipment Manufacturers $ 355 $ 314 Aftermarket 291 264 Industrial and Other 225 225 Total $ 871 $ 803 Vehicle Commercial $ 435 $ 448 Passenger and Light Duty 290 291 Total $ 724 $ 739 eMobility $ 158 $ 147 Total net sales $ 5,943 $ 5,483 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 $4,170 million and $3,966 million at March 31, 2024 and December 31, 2023, 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 $301 million and $289 million at March 31, 2024 and December 31, 2023, 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 2024. Changes in the deferred revenue liabilities are as follows: (In millions) Deferred Revenue Balance at January 1, 2024 $ 626 Customer deposits and billings 657 Revenue recognized in the period (612) Translation (5) Balance at March 31, 2024 $ 666 (In millions) Deferred Revenue Balance at January 1, 2023 $ 508 Customer deposits and billings 514 Revenue recognized in the period (421) Translation 4 Balance at March 31, 2023 $ 605 Deferred revenue liabilities of $651 million and $610 million as of March 31, 2024 and December 31, 2023, 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 March 31, 2024 was approximately $15 billion. At March 31, 2024, approximately 79% of this backlog is targeted for delivery to customers in the next twelve months and the rest thereafter.

CREDIT LOSSES FOR RECEIVABLES

CREDIT LOSSES FOR RECEIVABLES	3 Months Ended
	Mar. 31, 2024
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 $38 million at March 31, 2024 and December 31, 2023, respectively. The change in the allowance for credit losses includes expense and net write-offs, none of which are significant.

INVENTORY

INVENTORY	3 Months Ended
	Mar. 31, 2024
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) March 31, 2024 December 31, 2023 Raw materials $ 1,527 $ 1,515 Work-in-process 999 870 Finished goods 1,341 1,354 Total inventory $ 3,868 $ 3,739

GOODWILL

GOODWILL	3 Months Ended
	Mar. 31, 2024
Goodwill and Intangible Assets Disclosure [Abstract]
GOODWILL	GOODWILL Changes in the carrying amount of goodwill by segment are as follows: (In millions) January 1, 2024 Translation March 31, 2024 Electrical Americas $ 7,415 $ (8) $ 7,407 Electrical Global 4,038 (73) 3,965 Aerospace 2,901 (18) 2,883 Vehicle 289 (1) 288 eMobility 334 — 334 Total $ 14,977 $ (100) $ 14,877

SUPPLY CHAIN FINANCE PROGRAM

SUPPLY CHAIN FINANCE PROGRAM	3 Months Ended
	Mar. 31, 2024
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 The changes in SCF obligations are as follows: (In millions) SCF Obligations Balance at January 1, 2024 $ 369 Invoices confirmed during the period 351 Invoices paid during the period (359) Balance at March 31, 2024 $ 361 (In millions) SCF Obligations Balance at January 1, 2023 $ 219 Invoices confirmed during the period 297 Invoices paid during the period (234) Translation 1 Balance at March 31, 2023 $ 283

RETIREMENT BENEFITS PLANS

RETIREMENT BENEFITS PLANS	3 Months Ended
	Mar. 31, 2024
Retirement Benefits [Abstract]
RETIREMENT BENEFITS PLANS	RETIREMENT BENEFITS PLANS The components of retirement benefits expense are as follows: United States Non-United States Three months ended March 31 (In millions) 2024 2023 2024 2023 Service cost $ 5 $ 5 $ 12 $ 11 Interest cost 33 36 21 21 Expected return on plan assets (47) (49) (33) (30) Amortization 2 1 3 1 (7) (7) 3 3 Settlements 9 9 1 1 Total expense $ 1 $ 2 $ 4 $ 4 The components of retirement benefits expense other than service costs are included in Other 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.

LEGAL CONTINGENCIES

LEGAL CONTINGENCIES	3 Months Ended
	Mar. 31, 2024
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.

INCOME TAXES

INCOME TAXES	3 Months Ended
	Mar. 31, 2024
Income Tax Disclosure [Abstract]
INCOME TAXES	INCOME TAXES The effective income tax rate for the first quarter of 2024 was expense of 17.9% compared to expense of 16.1% for the first quarter of 2023. The increase in the effective tax rate in the first quarter of 2024 was primarily due to greater levels of income in higher tax jurisdictions, partially offset by a larger impact from the excess tax benefits recognized for employee share-based payments in the quarter. Brazil Tax Years 2005-2012 The Company has two Brazilian tax cases primarily relating to the amortization of certain goodwill generated from the acquisition of third-party businesses and corporate reorganizations. One case involves tax years 2005-2008 (Case 1), and the other involves tax years 2009-2012 (Case 2). Case 2 is proceeding on a more accelerated timeline than Case 1. For Case 2, the Company received a tax assessment in 2014 that included interest and penalties. In November 2019, the Company received an unfavorable result at the final tax administrative appeals level, resulting in an alleged tax deficiency of $27 million plus $118 million of interest and penalties (translated at the March 31, 2024 exchange rate). The Company is challenging this assessment in the judicial system and, on April 18, 2022, received an unfavorable decision at the first judicial level. On April 27, 2022, the Company filed a motion for clarification relating to that decision. On May 20, 2022, the court largely upheld its prior decision without further clarification. On June 9, 2022, the Company filed its notice of appeal to the second level court. The Company intends to continue its challenge of this assessment in the judicial system. As previously disclosed for Case 1, the Company received a separate tax assessment alleging a tax deficiency of $33 million plus $120 million of interest and penalties (translated at the March 31, 2024 exchange rate), which the Company is challenging in the judicial system. On April 4, 2024, the court published a favorable decision resulting in a reduction to the Case 1 assessment for the goodwill generated from the acquisition of a third-party business. In the same decision, the court confirmed the cancellation of an additional 75% penalty imposed by the tax authorities. As a result of the favorable decision, the alleged tax deficiency was reduced to $32 million plus $98 million of interest and penalties (translated at the March 31, 2024 exchange rate). The remainder of Case 1 is still pending resolution at the first judicial level. Both cases are expected to take several years to resolve through the Brazilian judicial system and require provision of certain assets as security for the alleged deficiencies. As of March 31, 2024, the Company pledged Brazilian real estate assets with net book value of $20 million and provided additional security in the form of bank secured bonds and insurance bonds totaling $136 million and a cash deposit of $26 million (translated at the March 31, 2024 exchange rate). The Company believes that the final resolution of both of the assessments will not have a material impact on its condensed consolidated financial statements. The ultimate outcome of these matters cannot be predicted with certainty given the complex nature of tax controversies. Should the ultimate outcome of these matters deviate from our reasonable expectations, they may have a material adverse impact on the Company’s condensed consolidated financial statements. However, Eaton believes that its interpretations of tax laws and application of tax laws to its facts are correct.

EATON SHAREHOLDERS' EQUITY

EATON SHAREHOLDERS' EQUITY	3 Months Ended
	Mar. 31, 2024
Stockholders' Equity Note [Abstract]
EATON SHAREHOLDERS' EQUITY	EATON 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, 2024 399.4 $ 4 $ 12,634 $ 10,305 $ (3,906) $ (1) $ 19,036 $ 33 $ 19,069 Net income — — — 821 — — 821 1 822 Other comprehensive loss, net of tax (40) (40) (40) Cash dividends paid and accrued — — — (381) — — (381) — (381) Issuance of shares under equity-based 0.9 — (4) (1) — — (5) — (5) Repurchase of shares (0.5) — — (138) — — (138) — (138) Balance at March 31, 2024 399.8 $ 4 $ 12,630 $ 10,605 $ (3,946) $ (1) $ 19,292 $ 34 $ 19,326 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 0.7 — (11) (1) — 1 (11) — (11) Changes in noncontrolling interest of — — — — — — — 1 1 Balance at March 31, 2023 398.6 $ 4 $ 12,502 $ 8,757 $ (3,814) $ — $ 17,449 $ 36 $ 17,485 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 months ended March 31, 2024, 0.5 million ordinary shares were repurchased under the 2022 program in the open market at a total cost of $138 million. During the three months ended March 31, 2023, no ordinary shares were repurchased. 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 Total Balance at January 1, 2024 $ (3,029) $ (995) $ 118 $ (3,906) Other comprehensive income (loss) before (49) 6 4 (39) Amounts reclassified from Accumulated other (4) 11 (9) (1) Net current-period Other comprehensive (53) 17 (4) (40) Balance at March 31, 2024 $ (3,082) $ (978) $ 114 $ (3,946) The reclassifications out of Accumulated other comprehensive loss are as follows: (In millions) Three months ended Consolidated Statements Gains and (losses) on net investment hedges (amount excluded Currency exchange contracts $ 4 Interest expense - net Tax expense — Total, net of tax 4 Amortization of defined benefits pensions and other Actuarial loss and prior service cost (12) 1 Tax benefit — Total, net of tax (11) Gains and (losses) on cash flow hedges Floating-to-fixed interest rate swaps 3 Interest expense - net Currency exchange contracts 8 Net sales and Cost of products sold Commodity contracts (1) Cost of products sold Tax expense (2) Total, net of tax 9 Total reclassifications for the period $ 1 1 These components of Accumulated other comprehensive loss are included in the computation of net periodic benefit cost. See Note 8 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 March 31 (In millions except for per share data) 2024 2023 Net income attributable to Eaton ordinary shareholders $ 821 $ 638 Weighted-average number of ordinary shares outstanding - diluted 401.9 400.5 Less dilutive effect of equity-based compensation 2.0 2.0 Weighted-average number of ordinary shares outstanding - basic 399.9 398.5 Net income per share attributable to Eaton ordinary shareholders Diluted $ 2.04 $ 1.59 Basic 2.05 1.60 For the first quarter of 2024 and 2023, all stock options were included in the calculation of diluted net income per share attributable to Eaton ordinary shareholders because they were all dilutive.

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	3 Months Ended
	Mar. 31, 2024
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 Quoted prices in active markets for identical assets Other observable inputs Unobservable inputs March 31, 2024 Cash $ 473 $ 473 $ — $ — Short-term investments 1,969 1,969 — — Net derivative contracts 20 — 20 — Contingent future payments from acquisition of Green Motion (17) — — (17) December 31, 2023 Cash $ 488 $ 488 $ — $ — Short-term investments 2,121 2,121 — — Net derivative contracts 11 — 11 — Contingent future payments from acquisition of Green Motion (18) — — (18) 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 March 31, 2024, the fair value of the contingent future payments has been reduced to $17 million based primarily on lower revenue in 2023 and anticipated reductions in projected 2024 revenue compared to the initial estimates at closing. Other Fair Value Measurements Long-term debt and the current portion of long-term debt had a carrying value of $9,186 million and fair value of $8,678 million at March 31, 2024 compared to $9,261 million and $8,924 million, respectively, at December 31, 2023. 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.

DERIVATIVE FINANCIAL INSTRUMENT

DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES	3 Months Ended
	Mar. 31, 2024
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 Other Other Other Other Type of Term March 31, 2024 Derivatives designated as hedges Forward starting floating-to-fixed interest rate swaps $ 216 $ — $ — $ — $ 1 Cash flow 8 years Currency exchange contracts 311 9 3 5 — Cash flow 1 to 22 months Commodity contracts 42 2 — — — Cash flow 1 to 11 months Currency exchange contracts 555 2 — — — Net investment 3 months Total $ 12 $ 3 $ 5 $ 2 Derivatives not designated as hedges Currency exchange contracts $ 4,429 $ 18 $ 6 1 to 6 months December 31, 2023 Derivatives designated as hedges Forward starting floating-to-fixed interest rate swaps $ 165 $ — $ — $ — $ 3 Cash flow 8 years Currency exchange contracts 505 17 3 7 1 Cash flow 1 to 25 months Commodity contracts 54 1 — 1 — Cash flow 1 to 12 months Currency exchange contracts 564 — — 1 — Net investment 3 months Total $ 17 $ 3 $ 9 $ 4 Derivatives not designated as hedges Currency exchange contracts $ 4,797 $ 12 $ 8 1 to 7 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 $3,068 million at March 31, 2024 and $3,140 million at December 31, 2023. As of March 31, 2024, the volume of outstanding commodity contracts that were entered into to hedge forecasted transactions: Commodity March 31, 2024 Term Aluminum 3 Millions of pounds 1 to 9 months Copper 9 Millions of pounds 1 to 11 months Gold 1,405 Troy ounces 1 to 10 months Silver 20,376 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 Cumulative amount of fair value hedging adjustment included in the carrying amount of the hedged asset (liabilities) 1 Location on Consolidated Balance Sheets March 31, 2024 December 31, 2023 March 31, 2024 December 31, 2023 Long-term debt $ (713) $ (713) $ (40) $ (42) 1 At March 31, 2024 and December 31, 2023, these amounts include the cumulative liability amount of fair value hedging adjustments remaining for which the hedge accounting has been discontinued of $40 million and $42 million, respectively. The impact of cash flow and fair value hedging activities to the Consolidated Statements of Income is as follows: Three months ended March 31, 2024 (In millions) Net Sales Cost of products sold Interest expense - net Amounts from Consolidated Statements of Income $ 5,943 $ 3,725 $ 30 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) $ (7) $ — Derivative designated as hedging instrument 1 7 — Commodity contracts Hedged item $ — $ 1 $ — Derivative designated as hedging instrument — (1) — Three months ended March 31, 2023 (In millions) Net Sales Cost of products sold Interest expense - net Amounts from Consolidated Statements of Income $ 5,483 $ 3,599 $ 50 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 $ 2 $ (15) $ — Derivative designated as hedging instrument (2) 15 — 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 (In millions) 2024 2023 Gain (loss) on derivatives not designated as hedges Currency exchange contracts $ 20 $ 11 Interest expense - net Total $ 20 $ 11 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 Location of gain (loss) Gain (loss) reclassified Three months ended Three months ended (In millions) 2024 2023 2024 2023 Derivatives designated as cash Forward starting floating-to-fixed $ 2 $ — Interest expense - net $ 3 $ 3 Currency exchange contracts 3 31 Net sales and Cost of products sold 8 11 Commodity contracts 1 2 Cost of products sold (1) — Derivatives designated as net Currency exchange contracts Effective portion 11 (14) Gain (loss) on sale of business — — Amount excluded from effectiveness 3 5 Interest expense - net 4 1 Non-derivative designated as net Foreign currency denominated debt 72 (63) Gain (loss) on sale of business — — Total $ 92 $ (39) $ 15 $ 15 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 $19 million at March 31, 2024. The pre-tax portion of the fair value of the forward points included in Accumulated other comprehensive loss were net gains of $3 million at March 31, 2024. At March 31, 2024, a gain of $5 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 twelve months.

RESTRUCTURING CHARGES

RESTRUCTURING CHARGES	3 Months Ended
	Mar. 31, 2024
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 incurred expenses of $199 million for workforce reductions and $184 million for plant closing and other costs, resulting in total charges of $382 million through December 31, 2023. This multi-year restructuring program was substantially complete at the end of 2023, with final payments expected to be made in 2024. During the first quarter of 2024, Eaton implemented a new multi-year restructuring program to accelerate opportunities to optimize its operations and global support structure. These actions will better align the Company's functions to support anticipated growth and drive greater effectiveness throughout the Company. Restructuring charges incurred under this program were $63 million in the first quarter of 2024. This restructuring program is expected to be completed in 2026 and is expected to incur additional expenses related to workforce reductions of $216 million and plant closing and other costs of $96 million, resulting in total estimated charges of $375 million for the entire program. A summary of restructuring program charges is as follows: Three months ended (In millions except for per share data) 2024 2023 Workforce reductions $ 59 $ 2 Plant closing and other 4 7 Total before income taxes 63 10 Income tax benefit 14 2 Total after income taxes $ 49 $ 8 Per ordinary share - diluted $ 0.12 $ 0.02 Restructuring program charges related to the following segments: Three months ended (In millions) 2024 2023 Electrical Americas $ 7 $ 2 Electrical Global 24 3 Aerospace 8 1 Vehicle 24 2 Corporate — 1 Total $ 63 $ 10 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, 2024 $ 35 $ 6 $ 41 Liability recognized, net 59 4 63 Payments, utilization and translation (14) (3) (18) Balance at March 31, 2024 $ 80 $ 7 $ 86 These restructuring program charges were included in Cost of products sold, Selling and administrative expense, Research and development expense, or Other income – net, as appropriate. In Business Segment Information, these restructuring program charges are treated as Corporate items. See Note 15 for additional information about business segments.

BUSINESS SEGMENT INFORMATION

BUSINESS SEGMENT INFORMATION	3 Months Ended
	Mar. 31, 2024
Segment Reporting [Abstract]
BUSINESS SEGMENT INFORMATION	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 18 to the consolidated financial statements contained in the 2023 Form 10-K. Three months ended (In millions) 2024 2023 Net sales Electrical Americas $ 2,690 $ 2,294 Electrical Global 1,500 1,500 Aerospace 871 803 Vehicle 724 739 eMobility 158 147 Total net sales $ 5,943 $ 5,483 Segment operating profit (loss) Electrical Americas $ 785 $ 525 Electrical Global 274 274 Aerospace 201 180 Vehicle 116 107 eMobility (4) (4) Total segment operating profit 1,371 1,082 Corporate Intangible asset amortization expense (106) (124) Interest expense - net (30) (50) Pension and other postretirement benefits income 12 11 Restructuring program charges (63) (10) Other expense - net (184) (148) Income before income taxes 1,001 762 Income tax expense 179 123 Net income 822 639 Less net income for noncontrolling interests (1) (1) Net income attributable to Eaton ordinary shareholders $ 821 $ 638

BASIS OF PRESENTATION (Policies

BASIS OF PRESENTATION (Policies)	3 Months Ended
	Mar. 31, 2024
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 2023 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.
Recently Issued Accounting Pronouncements	Recently Issued Accounting Pronouncements In November 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures (ASU 2023-07). This accounting standard requires additional segment disclosures on an annual and interim basis, including significant segment expenses that are regularly provided to the chief operating decision maker. The standard does not change how operating segments and reportable segments are determined. ASU 2023-07 is effective for annual reporting periods beginning after December 15, 2023 and interim reporting periods beginning after December 15, 2024. The standard is required to be applied retrospectively to all periods presented in the consolidated financial statements. Eaton plans to adopt the standard for the year ended December 31, 2024. The Company is evaluating the impact of ASU 2023-07 and expects the standard will only impact its segment disclosures with no material impact to the consolidated financial statements. In December 2023, the FASB issued Accounting Standards Update 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures (ASU 2023-09). This accounting standard requires disaggregated income tax disclosures on an annual basis, including information on the Company’s effective income tax rate reconciliation and income taxes paid. ASU 2023-09 is effective for annual reporting periods beginning after December 15, 2024, and may be applied prospectively or retrospectively. The Company is evaluating the impact of ASU 2023-09 and expects the standard will only impact its income taxes disclosures with no material impact to the consolidated financial statements.
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.

REVENUE RECOGNITION (Tables)

REVENUE RECOGNITION (Tables)	3 Months Ended
	Mar. 31, 2024
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 March 31 (In millions) 2024 2023 Electrical Americas Products $ 733 $ 716 Systems 1,957 1,578 Total $ 2,690 $ 2,294 Electrical Global Products $ 844 $ 882 Systems 656 618 Total $ 1,500 $ 1,500 Aerospace Original Equipment Manufacturers $ 355 $ 314 Aftermarket 291 264 Industrial and Other 225 225 Total $ 871 $ 803 Vehicle Commercial $ 435 $ 448 Passenger and Light Duty 290 291 Total $ 724 $ 739 eMobility $ 158 $ 147 Total net sales $ 5,943 $ 5,483
Schedule of Changes in Deferred Revenue Liabilities	Changes in the deferred revenue liabilities are as follows: (In millions) Deferred Revenue Balance at January 1, 2024 $ 626 Customer deposits and billings 657 Revenue recognized in the period (612) Translation (5) Balance at March 31, 2024 $ 666 (In millions) Deferred Revenue Balance at January 1, 2023 $ 508 Customer deposits and billings 514 Revenue recognized in the period (421) Translation 4 Balance at March 31, 2023 $ 605

INVENTORY (Tables)

INVENTORY (Tables)	3 Months Ended
	Mar. 31, 2024
Inventory Disclosure [Abstract]
Schedule of Components of Inventory	The components of inventory are as follows: (In millions) March 31, 2024 December 31, 2023 Raw materials $ 1,527 $ 1,515 Work-in-process 999 870 Finished goods 1,341 1,354 Total inventory $ 3,868 $ 3,739

GOODWILL (Tables)

GOODWILL (Tables)	3 Months Ended
	Mar. 31, 2024
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, 2024 Translation March 31, 2024 Electrical Americas $ 7,415 $ (8) $ 7,407 Electrical Global 4,038 (73) 3,965 Aerospace 2,901 (18) 2,883 Vehicle 289 (1) 288 eMobility 334 — 334 Total $ 14,977 $ (100) $ 14,877

SUPPLY CHAIN FINANCE PROGRAM (T

SUPPLY CHAIN FINANCE PROGRAM (Tables)	3 Months Ended
	Mar. 31, 2024
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, 2024 $ 369 Invoices confirmed during the period 351 Invoices paid during the period (359) Balance at March 31, 2024 $ 361 (In millions) SCF Obligations Balance at January 1, 2023 $ 219 Invoices confirmed during the period 297 Invoices paid during the period (234) Translation 1 Balance at March 31, 2023 $ 283

RETIREMENT BENEFIT PLANS (Table

RETIREMENT BENEFIT PLANS (Tables)	3 Months Ended
	Mar. 31, 2024
Retirement Benefits [Abstract]
Schedule of Benefits Expense (Income)	The components of retirement benefits expense are as follows: United States Non-United States Three months ended March 31 (In millions) 2024 2023 2024 2023 Service cost $ 5 $ 5 $ 12 $ 11 Interest cost 33 36 21 21 Expected return on plan assets (47) (49) (33) (30) Amortization 2 1 3 1 (7) (7) 3 3 Settlements 9 9 1 1 Total expense $ 1 $ 2 $ 4 $ 4

EATON SHAREHOLDERS' EQUITY (Tab

EATON SHAREHOLDERS' EQUITY (Tables)	3 Months Ended
	Mar. 31, 2024
Stockholders' Equity Note [Abstract]
Schedule of Changes in Stockholders 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, 2024 399.4 $ 4 $ 12,634 $ 10,305 $ (3,906) $ (1) $ 19,036 $ 33 $ 19,069 Net income — — — 821 — — 821 1 822 Other comprehensive loss, net of tax (40) (40) (40) Cash dividends paid and accrued — — — (381) — — (381) — (381) Issuance of shares under equity-based 0.9 — (4) (1) — — (5) — (5) Repurchase of shares (0.5) — — (138) — — (138) — (138) Balance at March 31, 2024 399.8 $ 4 $ 12,630 $ 10,605 $ (3,946) $ (1) $ 19,292 $ 34 $ 19,326 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 0.7 — (11) (1) — 1 (11) — (11) Changes in noncontrolling interest of — — — — — — — 1 1 Balance at March 31, 2023 398.6 $ 4 $ 12,502 $ 8,757 $ (3,814) $ — $ 17,449 $ 36 $ 17,485
Schedule of Changes in Accumulated Other Comprehensive Income (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 Total Balance at January 1, 2024 $ (3,029) $ (995) $ 118 $ (3,906) Other comprehensive income (loss) before (49) 6 4 (39) Amounts reclassified from Accumulated other (4) 11 (9) (1) Net current-period Other comprehensive (53) 17 (4) (40) Balance at March 31, 2024 $ (3,082) $ (978) $ 114 $ (3,946)
Schedule of Reclassifications out of Accumulated Other Comprehensive Income (Loss)	The reclassifications out of Accumulated other comprehensive loss are as follows: (In millions) Three months ended Consolidated Statements Gains and (losses) on net investment hedges (amount excluded Currency exchange contracts $ 4 Interest expense - net Tax expense — Total, net of tax 4 Amortization of defined benefits pensions and other Actuarial loss and prior service cost (12) 1 Tax benefit — Total, net of tax (11) Gains and (losses) on cash flow hedges Floating-to-fixed interest rate swaps 3 Interest expense - net Currency exchange contracts 8 Net sales and Cost of products sold Commodity contracts (1) Cost of products sold Tax expense (2) Total, net of tax 9 Total reclassifications for the period $ 1 1 These components of Accumulated other comprehensive loss are included in the computation of net periodic benefit cost. See Note 8 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 March 31 (In millions except for per share data) 2024 2023 Net income attributable to Eaton ordinary shareholders $ 821 $ 638 Weighted-average number of ordinary shares outstanding - diluted 401.9 400.5 Less dilutive effect of equity-based compensation 2.0 2.0 Weighted-average number of ordinary shares outstanding - basic 399.9 398.5 Net income per share attributable to Eaton ordinary shareholders Diluted $ 2.04 $ 1.59 Basic 2.05 1.60

FAIR VALUE MEASUREMENTS (Tables

FAIR VALUE MEASUREMENTS (Tables)	3 Months Ended
	Mar. 31, 2024
Fair Value Disclosures [Abstract]
Schedule of Financial Instruments Recognized at Fair Value	A summary of financial instruments and contingent consideration recognized at fair value, and the fair value measurements used, is as follows: (In millions) Total Quoted prices in active markets for identical assets Other observable inputs Unobservable inputs March 31, 2024 Cash $ 473 $ 473 $ — $ — Short-term investments 1,969 1,969 — — Net derivative contracts 20 — 20 — Contingent future payments from acquisition of Green Motion (17) — — (17) December 31, 2023 Cash $ 488 $ 488 $ — $ — Short-term investments 2,121 2,121 — — Net derivative contracts 11 — 11 — Contingent future payments from acquisition of Green Motion (18) — — (18)

DERIVATIVE FINANCIAL INSTRUME_2

DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES (Tables)	3 Months Ended
	Mar. 31, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Schedule of Derivative Financial Instruments	The fair value of derivative financial instruments recognized in the Consolidated Balance Sheets is as follows: (In millions) Notional Other Other Other Other Type of Term March 31, 2024 Derivatives designated as hedges Forward starting floating-to-fixed interest rate swaps $ 216 $ — $ — $ — $ 1 Cash flow 8 years Currency exchange contracts 311 9 3 5 — Cash flow 1 to 22 months Commodity contracts 42 2 — — — Cash flow 1 to 11 months Currency exchange contracts 555 2 — — — Net investment 3 months Total $ 12 $ 3 $ 5 $ 2 Derivatives not designated as hedges Currency exchange contracts $ 4,429 $ 18 $ 6 1 to 6 months December 31, 2023 Derivatives designated as hedges Forward starting floating-to-fixed interest rate swaps $ 165 $ — $ — $ — $ 3 Cash flow 8 years Currency exchange contracts 505 17 3 7 1 Cash flow 1 to 25 months Commodity contracts 54 1 — 1 — Cash flow 1 to 12 months Currency exchange contracts 564 — — 1 — Net investment 3 months Total $ 17 $ 3 $ 9 $ 4 Derivatives not designated as hedges Currency exchange contracts $ 4,797 $ 12 $ 8 1 to 7 months
Schedule of Notional Amounts of Outstanding Derivative Positions and Commodity Contracts	As of March 31, 2024, the volume of outstanding commodity contracts that were entered into to hedge forecasted transactions: Commodity March 31, 2024 Term Aluminum 3 Millions of pounds 1 to 9 months Copper 9 Millions of pounds 1 to 11 months Gold 1,405 Troy ounces 1 to 10 months Silver 20,376 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 Cumulative amount of fair value hedging adjustment included in the carrying amount of the hedged asset (liabilities) 1 Location on Consolidated Balance Sheets March 31, 2024 December 31, 2023 March 31, 2024 December 31, 2023 Long-term debt $ (713) $ (713) $ (40) $ (42) 1 At March 31, 2024 and December 31, 2023, these amounts include the cumulative liability amount of fair value hedging adjustments remaining for which the hedge accounting has been discontinued of $40 million and $42 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 March 31, 2024 (In millions) Net Sales Cost of products sold Interest expense - net Amounts from Consolidated Statements of Income $ 5,943 $ 3,725 $ 30 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) $ (7) $ — Derivative designated as hedging instrument 1 7 — Commodity contracts Hedged item $ — $ 1 $ — Derivative designated as hedging instrument — (1) — Three months ended March 31, 2023 (In millions) Net Sales Cost of products sold Interest expense - net Amounts from Consolidated Statements of Income $ 5,483 $ 3,599 $ 50 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 $ 2 $ (15) $ — Derivative designated as hedging instrument (2) 15 —
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 (In millions) 2024 2023 Gain (loss) on derivatives not designated as hedges Currency exchange contracts $ 20 $ 11 Interest expense - net Total $ 20 $ 11
Schedule of Amounts Recognized in Accumulated Other Comprehensive Income (Loss)	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 Location of gain (loss) Gain (loss) reclassified Three months ended Three months ended (In millions) 2024 2023 2024 2023 Derivatives designated as cash Forward starting floating-to-fixed $ 2 $ — Interest expense - net $ 3 $ 3 Currency exchange contracts 3 31 Net sales and Cost of products sold 8 11 Commodity contracts 1 2 Cost of products sold (1) — Derivatives designated as net Currency exchange contracts Effective portion 11 (14) Gain (loss) on sale of business — — Amount excluded from effectiveness 3 5 Interest expense - net 4 1 Non-derivative designated as net Foreign currency denominated debt 72 (63) Gain (loss) on sale of business — — Total $ 92 $ (39) $ 15 $ 15

RESTRUCTURING CHARGES (Tables)

RESTRUCTURING CHARGES (Tables)	3 Months Ended
	Mar. 31, 2024
Restructuring and Related Activities [Abstract]
Schedule of Restructuring Program Charges	A summary of restructuring program charges is as follows: Three months ended (In millions except for per share data) 2024 2023 Workforce reductions $ 59 $ 2 Plant closing and other 4 7 Total before income taxes 63 10 Income tax benefit 14 2 Total after income taxes $ 49 $ 8 Per ordinary share - diluted $ 0.12 $ 0.02 Restructuring program charges related to the following segments: Three months ended (In millions) 2024 2023 Electrical Americas $ 7 $ 2 Electrical Global 24 3 Aerospace 8 1 Vehicle 24 2 Corporate — 1 Total $ 63 $ 10
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, 2024 $ 35 $ 6 $ 41 Liability recognized, net 59 4 63 Payments, utilization and translation (14) (3) (18) Balance at March 31, 2024 $ 80 $ 7 $ 86

BUSINESS SEGMENT INFORMATION (T

BUSINESS SEGMENT INFORMATION (Tables)	3 Months Ended
	Mar. 31, 2024
Segment Reporting [Abstract]
Schedule of Business Segment Information	Three months ended (In millions) 2024 2023 Net sales Electrical Americas $ 2,690 $ 2,294 Electrical Global 1,500 1,500 Aerospace 871 803 Vehicle 724 739 eMobility 158 147 Total net sales $ 5,943 $ 5,483 Segment operating profit (loss) Electrical Americas $ 785 $ 525 Electrical Global 274 274 Aerospace 201 180 Vehicle 116 107 eMobility (4) (4) Total segment operating profit 1,371 1,082 Corporate Intangible asset amortization expense (106) (124) Interest expense - net (30) (50) Pension and other postretirement benefits income 12 11 Restructuring program charges (63) (10) Other expense - net (184) (148) Income before income taxes 1,001 762 Income tax expense 179 123 Net income 822 639 Less net income for noncontrolling interests (1) (1) Net income attributable to Eaton ordinary shareholders $ 821 $ 638

INVESTMENT IN ASSOCIATE COMPA_2

INVESTMENT IN ASSOCIATE COMPANY - Narrative (Details)	Apr. 23, 2023
Jiangsu Ryan Electrical Co. Ltd.
Business Acquisition [Line Items]
Ownership interest acquired (as a percent)	49%

REVENUE RECOGNITION - Narrative

REVENUE RECOGNITION - Narrative (Details) - USD ($) $ in Millions	Mar. 31, 2024	Dec. 31, 2023
Disaggregation of Revenue [Line Items]
Accounts receivables from customers	$ 4,170	$ 3,966
Unbilled receivables	301	289
Deferred revenue liabilities, included in other current liabilities	651	$ 610
Backlog of unsatisfied or partially satisfied obligations	$ 15,000
Backlog expected to be recognized in the next twelve months, percent	79%
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-04-01
Disaggregation of Revenue [Line Items]
Expected timing of satisfaction	12 months

REVENUE RECOGNITION - Disaggreg

REVENUE RECOGNITION - Disaggregation of Sales (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Disaggregation of Revenue [Line Items]
Net Sales	$ 5,943	$ 5,483
Electrical Americas
Disaggregation of Revenue [Line Items]
Net Sales	2,690	2,294
Electrical Global
Disaggregation of Revenue [Line Items]
Net Sales	1,500	1,500
Aerospace
Disaggregation of Revenue [Line Items]
Net Sales	871	803
Aerospace | Original Equipment Manufacturers
Disaggregation of Revenue [Line Items]
Net Sales	355	314
Aerospace | Aftermarket
Disaggregation of Revenue [Line Items]
Net Sales	291	264
Aerospace | Industrial and Other
Disaggregation of Revenue [Line Items]
Net Sales	225	225
Vehicle
Disaggregation of Revenue [Line Items]
Net Sales	724	739
eMobility
Disaggregation of Revenue [Line Items]
Net Sales	158	147
Products | Electrical Americas
Disaggregation of Revenue [Line Items]
Net Sales	733	716
Products | Electrical Global
Disaggregation of Revenue [Line Items]
Net Sales	844	882
Systems | Electrical Americas
Disaggregation of Revenue [Line Items]
Net Sales	1,957	1,578
Systems | Electrical Global
Disaggregation of Revenue [Line Items]
Net Sales	656	618
Commercial | Vehicle
Disaggregation of Revenue [Line Items]
Net Sales	435	448
Passenger and Light Duty | Vehicle
Disaggregation of Revenue [Line Items]
Net Sales	$ 290	$ 291

REVENUE RECOGNITION - Changes i

REVENUE RECOGNITION - Changes in Deferred Revenue Liabilities (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Movement in Deferred Revenue [Roll Forward]
Balance at beginning of period	$ 626	$ 508
Customer deposits and billings	657	514
Revenue recognized in the period	(612)	(421)
Translation	(5)	4
Balance at end of period	$ 666	$ 605

CREDIT LOSSES FOR RECEIVABLES -

CREDIT LOSSES FOR RECEIVABLES - Narrative (Details) - USD ($) $ in Millions	Mar. 31, 2024	Dec. 31, 2023
Credit Loss [Abstract]
Allowance for credit losses	$ 39	$ 38

INVENTORY - Summary (Details)

INVENTORY - Summary (Details) - USD ($) $ in Millions	Mar. 31, 2024	Dec. 31, 2023
Inventory Disclosure [Abstract]
Raw materials	$ 1,527	$ 1,515
Work-in-process	999	870
Finished goods	1,341	1,354
Total inventory	$ 3,868	$ 3,739

GOODWILL (Details)

GOODWILL (Details) $ in Millions	3 Months Ended
	Mar. 31, 2024 USD ($)
Goodwill [Roll Forward]
Balance at beginning of period	$ 14,977
Translation	(100)
Balance at end of period	14,877
Electrical Americas
Goodwill [Roll Forward]
Balance at beginning of period	7,415
Translation	(8)
Balance at end of period	7,407
Electrical Global
Goodwill [Roll Forward]
Balance at beginning of period	4,038
Translation	(73)
Balance at end of period	3,965
Aerospace
Goodwill [Roll Forward]
Balance at beginning of period	2,901
Translation	(18)
Balance at end of period	2,883
Vehicle
Goodwill [Roll Forward]
Balance at beginning of period	289
Translation	(1)
Balance at end of period	288
eMobility
Goodwill [Roll Forward]
Balance at beginning of period	334
Translation	0
Balance at end of period	$ 334

SUPPLY CHAIN FINANCE PROGRAM (D

SUPPLY CHAIN FINANCE PROGRAM (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Supplier Finance Program, Obligation [Roll Forward]
Balance at beginning period	$ 369	$ 219
Invoices confirmed during the period	351	297
Invoices paid during the period	(359)	(234)
Translation		1
Balance at ending period	$ 361	$ 283
Supplier Finance Program, Obligation, Statement of Financial Position [Extensible Enumeration]	Accounts Payable, Current

RETIREMENT BENEFIT PLANS - Reti

RETIREMENT BENEFIT PLANS - Retirement Benefits Expense (Income) (Details) - Pension plans - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
UNITED STATES
Retirement benefits plans expense (income)
Service cost	$ 5	$ 5
Interest cost	33	36
Expected return on plan assets	(47)	(49)
Amortization	2	1
Total	(7)	(7)
Settlements	9	9
Total expense	1	2
Non-United States plans
Retirement benefits plans expense (income)
Service cost	12	11
Interest cost	21	21
Expected return on plan assets	(33)	(30)
Amortization	3	1
Total	3	3
Settlements	1	1
Total expense	$ 4	$ 4

INCOME TAXES (Details)

INCOME TAXES (Details) $ in Millions	3 Months Ended
	Mar. 31, 2024 USD ($) taxCase	Mar. 31, 2023	Apr. 04, 2024 USD ($)	Aug. 31, 2021 USD ($)	Nov. 30, 2019 USD ($)
Income Tax Examination [Line Items]
Effective income tax (benefit) expense rate (as a percent)	17.90%	16.10%
Secretariat of the Federal Revenue Bureau of Brazil
Income Tax Examination [Line Items]
Pledged real estate assets	$ 20
Real estate bond	136
Real estate cash deposit	$ 26
Secretariat of the Federal Revenue Bureau of Brazil | Tax Years 2005-2012
Income Tax Examination [Line Items]
Number of tax cases | taxCase	2
Secretariat of the Federal Revenue Bureau of Brazil | Tax Years 2009-2012
Income Tax Examination [Line Items]
Alleged tax deficiency					$ 27
Income tax examination, penalties and interest accrued					$ 118
Secretariat of the Federal Revenue Bureau of Brazil | Tax Years 2005-2008
Income Tax Examination [Line Items]
Alleged tax deficiency				$ 33
Income tax examination, penalties and interest accrued				$ 120
Secretariat of the Federal Revenue Bureau of Brazil | Subsequent Event | Tax Years 2005-2008
Income Tax Examination [Line Items]
Alleged tax deficiency			$ 32
Income tax examination, penalties and interest accrued			$ 98
Penalty percentage cancelled			75%

EATON SHAREHOLDERS' EQUITY - Ch

EATON SHAREHOLDERS' EQUITY - Changes in Shareholders' Equity (Details) - USD ($) shares in Millions, $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance at beginning of period	$ 19,069	$ 17,075
Net income	822	639
Other comprehensive loss, net of tax	(40)	132
Cash dividends paid and accrued	(381)	(352)
Issuance of shares under equity-based compensation plans	(5)	(11)
Repurchase of shares	(138)
Changes in noncontrolling interest of consolidated subsidiaries - net		1
Balance at end of period	19,326	17,485
Total Eaton shareholders' equity
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance at beginning of period	19,036	17,038
Net income	821	638
Other comprehensive loss, net of tax	(40)	132
Cash dividends paid and accrued	(381)	(348)
Issuance of shares under equity-based compensation plans	(5)	(11)
Repurchase of shares	(138)
Balance at end of period	$ 19,292	$ 17,449
Ordinary shares
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance at beginning of period (shares)	399.4	397.8
Balance at beginning of period	$ 4	$ 4
Issuance of shares under equity-based compensation plans (shares)	0.9	0.7
Repurchase of shares (shares)	(0.5)
Balance at end of period (shares)	399.8	398.6
Balance at end of period	$ 4	$ 4
Capital in excess of par value
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance at beginning of period	12,634	12,512
Issuance of shares under equity-based compensation plans	(4)	(11)
Balance at end of period	12,630	12,502
Retained earnings
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance at beginning of period	10,305	8,468
Net income	821	638
Cash dividends paid and accrued	(381)	(348)
Issuance of shares under equity-based compensation plans	(1)	(1)
Repurchase of shares	(138)
Balance at end of period	10,605	8,757
AOCI Attributable to Parent
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance at beginning of period	(3,906)	(3,946)
Other comprehensive loss, net of tax	(40)	132
Balance at end of period	(3,946)	(3,814)
Shares held in trust
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance at beginning of period	(1)	(1)
Issuance of shares under equity-based compensation plans		1
Balance at end of period	(1)	0
Noncontrolling interests
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance at beginning of period	33	38
Net income	1	1
Cash dividends paid and accrued		(4)
Changes in noncontrolling interest of consolidated subsidiaries - net		1
Balance at end of period	$ 34	$ 36

EATON SHAREHOLDERS' EQUITY - Na

EATON SHAREHOLDERS' EQUITY - Narrative (Details) - USD ($) shares in Millions		3 Months Ended
	Feb. 23, 2022	Mar. 31, 2024	Feb. 27, 2019
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 program, period in force	3 years
Ordinary shares purchased (in shares)		0.5
Stock repurchased		$ 138,000,000

EATON SHAREHOLDERS' EQUITY - _2

EATON SHAREHOLDERS' EQUITY - Changes in Accumulated Other Comprehensive (Loss) Income (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance at beginning of period	$ 19,069	$ 17,075
Other comprehensive income (loss) before reclassifications	(39)
Amounts reclassified from Accumulated other comprehensive loss (income)	(1)
Other comprehensive income (loss) attributable to Eaton ordinary shareholders	(40)	132
Balance at end of period	19,326	$ 17,485
Total
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance at beginning of period	(3,906)
Balance at end of period	(3,946)
Currency translation and related hedging instruments
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance at beginning of period	(3,029)
Other comprehensive income (loss) before reclassifications	(49)
Amounts reclassified from Accumulated other comprehensive loss (income)	(4)
Other comprehensive income (loss) attributable to Eaton ordinary shareholders	(53)
Balance at end of period	(3,082)
Pensions and other postretirement benefits
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance at beginning of period	(995)
Other comprehensive income (loss) before reclassifications	6
Amounts reclassified from Accumulated other comprehensive loss (income)	11
Other comprehensive income (loss) attributable to Eaton ordinary shareholders	17
Balance at end of period	(978)
Cash flow hedges
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance at beginning of period	118
Other comprehensive income (loss) before reclassifications	4
Amounts reclassified from Accumulated other comprehensive loss (income)	(9)
Other comprehensive income (loss) attributable to Eaton ordinary shareholders	(4)
Balance at end of period	$ 114

EATON SHAREHOLDERS' EQUITY - Re

EATON SHAREHOLDERS' EQUITY - Reclassifications Out of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Income before income taxes	$ 1,001	$ 762
Income tax expense (benefit)	179	123
Total, net of tax	821	$ 638
Reclassification out of Accumulated Other Comprehensive Loss
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Total, net of tax	1
Gains and (losses) on net investment hedges (amount excluded from effectiveness testing) | Reclassification out of Accumulated Other Comprehensive Loss
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Income before income taxes	4
Income tax expense (benefit)	0
Total, net of tax	4
Amortization of defined benefits pensions and other postretirement benefits items | Reclassification out of Accumulated Other Comprehensive Loss
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Income before income taxes	(12)
Income tax expense (benefit)	0
Total, net of tax	(11)
Gains and (losses) on cash flow hedges | Reclassification out of Accumulated Other Comprehensive Loss
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Income tax expense (benefit)	2
Total, net of tax	9
Gains and (losses) on cash flow hedges | Reclassification out of Accumulated Other Comprehensive Loss | Floating-to-fixed interest rate swaps
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Income before income taxes	3
Gains and (losses) on cash flow hedges | Reclassification out of Accumulated Other Comprehensive Loss | Currency exchange contracts
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Income before income taxes	8
Gains and (losses) on cash flow hedges | Reclassification out of Accumulated Other Comprehensive Loss | Commodity contracts
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Income before income taxes	$ (1)

EATON SHAREHOLDERS' EQUITY - Ca

EATON SHAREHOLDERS' EQUITY - Calculation of Net Income per Ordinary Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Calculation of net income per ordinary share attributable to ordinary shareholders
Net income attributable to Eaton ordinary shareholders	$ 821	$ 638
Weighted-average number of ordinary shares outstanding - diluted (in shares)	401.9	400.5
Less: dilutive effect of equity-based compensation (in shares)	2	2
Weighted-average number of ordinary shares outstanding - basic (in shares)	399.9	398.5
Net income per share attributable to Eaton ordinary shareholders
Diluted (USD per share)	$ 2.04	$ 1.59
Basic (USD per share)	$ 2.05	$ 1.60

FAIR VALUE MEASUREMENTS - Asset

FAIR VALUE MEASUREMENTS - Assets Measured on Recurring Basis (Details) - USD ($) $ in Millions	Mar. 31, 2024	Dec. 31, 2023
Summary of financial instruments recognized at fair value and fair value measurement used
Cash	$ 473	$ 488
Short-term investments	1,969	2,121
Net derivative contracts	20	11
Contingent future payments from acquisition of Green Motion	(17)	(18)
Quoted prices in active markets for identical assets (Level 1)
Summary of financial instruments recognized at fair value and fair value measurement used
Cash	473	488
Short-term investments	1,969	2,121
Net derivative contracts	0	0
Contingent future payments from acquisition of Green Motion	0	0
Other observable inputs (Level 2)
Summary of financial instruments recognized at fair value and fair value measurement used
Cash	0	0
Short-term investments	0	0
Net derivative contracts	20	11
Contingent future payments from acquisition of Green Motion	0	0
Unobservable inputs (Level 3)
Summary of financial instruments recognized at fair value and fair value measurement used
Cash	0	0
Short-term investments	0	0
Net derivative contracts	0	0
Contingent future payments from acquisition of Green Motion	$ (17)	$ (18)

FAIR VALUE MEASUREMENTS - Narra

FAIR VALUE MEASUREMENTS - Narrative (Details) - USD ($) $ in Millions	Mar. 22, 2021	Mar. 31, 2024	Dec. 31, 2023
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items]
Contingent consideration		$ 17	$ 18
Long-term debt and current portion of long term debt, carrying value		9,186	9,261
Long-term debt and current portion of long-term debt, fair value		8,678	$ 8,924
Green Motion, SA
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items]
Total consideration to be transferred for acquisition	$ 106
Cash paid at closing	49
Contingent consideration	57	$ 17
Fair value of contingent future payments	$ 114

DERIVATIVE FINANCIAL INSTRUME_3

DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES - Derivative Financial Instrument Recognized in the Consolidated Balance Sheet (Details) - USD ($) $ in Millions	Mar. 31, 2024	Dec. 31, 2023
Derivatives designated as hedges | Other current assets
Derivatives, Fair Value [Line Items]
Derivative asset designated as hedging instrument	$ 12	$ 17
Derivatives designated as hedges | Other noncurrent assets
Derivatives, Fair Value [Line Items]
Derivative asset designated as hedging instrument	3	3
Derivatives designated as hedges | Other current liabilities
Derivatives, Fair Value [Line Items]
Derivative liability designated as hedging instrument	5	9
Derivatives designated as hedges | Other noncurrent liabilities
Derivatives, Fair Value [Line Items]
Derivative liability designated as hedging instrument	2	4
Derivatives designated as hedges | Cash flow hedging | Forward starting floating-to-fixed interest rate swaps
Derivatives, Fair Value [Line Items]
Notional amount	$ 216	$ 165
Derivative, remaining maturity	8 years	8 years
Derivatives designated as hedges | Cash flow hedging | Forward starting floating-to-fixed interest rate swaps | Other current assets
Derivatives, Fair Value [Line Items]
Derivative asset designated as hedging instrument	$ 0	$ 0
Derivatives designated as hedges | Cash flow hedging | Forward starting floating-to-fixed interest rate swaps | Other noncurrent assets
Derivatives, Fair Value [Line Items]
Derivative asset designated as hedging instrument	0	0
Derivatives designated as hedges | Cash flow hedging | Forward starting floating-to-fixed interest rate swaps | Other current liabilities
Derivatives, Fair Value [Line Items]
Derivative liability designated as hedging instrument	0	0
Derivatives designated as hedges | Cash flow hedging | Forward starting floating-to-fixed interest rate swaps | Other noncurrent liabilities
Derivatives, Fair Value [Line Items]
Derivative liability designated as hedging instrument	1	3
Derivatives designated as hedges | Cash flow hedging | Currency exchange contracts
Derivatives, Fair Value [Line Items]
Notional amount	311	505
Derivatives designated as hedges | Cash flow hedging | Currency exchange contracts | Other current assets
Derivatives, Fair Value [Line Items]
Derivative asset designated as hedging instrument	9	17
Derivatives designated as hedges | Cash flow hedging | Currency exchange contracts | Other noncurrent assets
Derivatives, Fair Value [Line Items]
Derivative asset designated as hedging instrument	3	3
Derivatives designated as hedges | Cash flow hedging | Currency exchange contracts | Other current liabilities
Derivatives, Fair Value [Line Items]
Derivative liability designated as hedging instrument	5	7
Derivatives designated as hedges | Cash flow hedging | Currency exchange contracts | Other noncurrent liabilities
Derivatives, Fair Value [Line Items]
Derivative liability designated as hedging instrument	0	1
Derivatives designated as hedges | Cash flow hedging | Commodity contracts
Derivatives, Fair Value [Line Items]
Notional amount	42	54
Derivatives designated as hedges | Cash flow hedging | Commodity contracts | Other current assets
Derivatives, Fair Value [Line Items]
Derivative asset designated as hedging instrument	2	1
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	0	1
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	$ 555	$ 564
Derivative, remaining maturity	3 months	3 months
Derivatives designated as hedges | Net Investment Hedging | Currency exchange contracts | Other current assets
Derivatives, Fair Value [Line Items]
Derivative asset designated as hedging instrument	$ 2	$ 0
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	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	1
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	0
Derivatives not designated as Hedges | Currency exchange contracts
Derivatives, Fair Value [Line Items]
Notional amount	4,429	4,797
Derivatives not designated as Hedges | Currency exchange contracts | Other current assets
Derivatives, Fair Value [Line Items]
Derivative asset not designated as hedging instrument	18	12
Derivatives not designated as Hedges | Currency exchange contracts | Other current liabilities
Derivatives, Fair Value [Line Items]
Derivative liability not designated as hedging instrument	$ 6	$ 8
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	22 months	25 months
Maximum | Derivatives designated as hedges | Cash flow hedging | Commodity contracts
Derivatives, Fair Value [Line Items]
Derivative, remaining maturity	11 months	12 months
Maximum | Derivatives not designated as Hedges | Currency exchange contracts
Derivatives, Fair Value [Line Items]
Derivative, remaining maturity	6 months	7 months

DERIVATIVE FINANCIAL INSTRUME_4

DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES - Narrative (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Derivative [Line Items]
Proportion of intercompany balance sheet exposure (as a percent)	100%
Pre-tax portion of the fair value of currency exchange contracts, gain	$ 19,292		$ 19,036
Cash flow hedge gain (loss) to be reclassified within the next twelve months	5
Non-derivative net investment hedge
Derivative [Line Items]
Foreign currency note payable, noncurrent, after-tax	3,068		$ 3,140
Net Investment Hedging | Currency exchange contracts | Derivatives designated as hedges | Accumulated Foreign Currency Adjustment Attributable to Parent [Member]
Derivative [Line Items]
Pre-tax portion of the fair value of currency exchange contracts, gain	19
Net Investment Hedging | Currency exchange contracts | Derivatives designated as hedges | Interest expense - net
Derivative [Line Items]
Amount excluded from effectiveness testing	3	$ 5
Net Investment Hedging | Forward starting floating-to-fixed interest rate swaps | Derivatives designated as hedges | Accumulated Foreign Currency Adjustment Attributable to Parent [Member]
Derivative [Line Items]
Pre-tax portion of the fair value of currency exchange contracts, gain	$ 3

DERIVATIVE FINANCIAL INSTRUME_5

DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES - Volume of Outstanding Commodity Contracts (Details) lb in Millions	3 Months Ended
	Mar. 31, 2024 lb ozt
Aluminum | Commodity contracts
Derivative [Line Items]
Derivative, outstanding commodity contract | lb	3
Aluminum | Minimum
Derivative [Line Items]
Derivative, term of contract	1 month
Aluminum | Maximum
Derivative [Line Items]
Derivative, term of contract	9 months
Copper | Commodity contracts
Derivative [Line Items]
Derivative, outstanding commodity contract | lb	9
Copper | Minimum
Derivative [Line Items]
Derivative, term of contract	1 month
Copper | Maximum
Derivative [Line Items]
Derivative, term of contract	11 months
Gold | Commodity contracts
Derivative [Line Items]
Derivative, outstanding commodity contract | ozt	1,405
Gold | Minimum
Derivative [Line Items]
Derivative, term of contract	1 month
Gold | Maximum
Derivative [Line Items]
Derivative, term of contract	10 months
Silver | Commodity contracts
Derivative [Line Items]
Derivative, outstanding commodity contract | ozt	20,376
Silver | Minimum
Derivative [Line Items]
Derivative, term of contract	1 month
Silver | Maximum
Derivative [Line Items]
Derivative, term of contract	7 months

DERIVATIVE FINANCIAL INSTRUME_6

DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES - Amounts Recorded on Balance Sheet Related to Fixed-to-Floating Interest Rate Swaps (Details) - USD ($) $ in Millions	Mar. 31, 2024	Dec. 31, 2023
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	40	42
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)	$ (40)	$ (42)

DERIVATIVE FINANCIAL INSTRUME_7

DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES - Impact of Derivative on Consolidated Statement of Income (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Derivative [Line Items]
Net Sales	$ 5,943	$ 5,483
Cost of products sold	3,725	3,599
Interest expense - net	30	50
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
Gain (loss) on hedging instrument	1	(2)
Cash flow hedging | Net Sales | Commodity contracts
Derivative [Line Items]
Gain (loss) on hedged item	0
Gain (loss) on hedging instrument	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	(7)	(15)
Gain (loss) on hedging instrument	7	15
Cash flow hedging | Cost of products sold | Commodity contracts
Derivative [Line Items]
Gain (loss) on hedged item	1
Gain (loss) on hedging instrument	(1)
Cash flow hedging | Interest expense - net | Forward starting floating-to-fixed interest rate swaps
Derivative [Line Items]
Gain (loss) on hedged item	(3)	(3)
Gain (loss) on hedging instrument	3	3
Cash flow hedging | Interest expense - net | Currency exchange contracts
Derivative [Line Items]
Gain (loss) on hedged item	0	0
Gain (loss) on hedging instrument	0	$ 0
Cash flow hedging | Interest expense - net | Commodity contracts
Derivative [Line Items]
Gain (loss) on hedged item	0
Gain (loss) on hedging instrument	$ 0

DERIVATIVE FINANCIAL INSTRUME_8

DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES- Impact of Derivatives Not Designated as Hedges (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) on derivatives not designated as hedges	$ 20	$ 11
Currency exchange contracts | Interest expense - net
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) on derivatives not designated as hedges	$ 20	$ 11

DERIVATIVE FINANCIAL INSTRUME_9

DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES - Amounts Recognized in Other Comprehensive Income and Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Gain (loss) recognized in other comprehensive income (loss)
Total	$ 92	$ (39)
Gain (loss) reclassified from Accumulated other comprehensive loss
Total	15	15
Gain (loss) on sale of business | Net Investment Hedging
Gain (loss) recognized in other comprehensive income (loss)
Non-derivative designated as net investment hedges	72	(63)
Gain (loss) reclassified from Accumulated other comprehensive loss
Non-derivative designated as net investment hedges	0	0
Forward starting floating-to-fixed interest rate swaps | Interest expense - net | Cash flow hedging
Gain (loss) recognized in other comprehensive income (loss)
Derivatives designated as cash flow hedges	2	0
Gain (loss) reclassified from Accumulated other comprehensive loss
Derivatives designated as cash flow hedges	3	3
Currency exchange contracts | Interest expense - net | Net Investment Hedging | Derivatives designated as hedges
Gain (loss) recognized in other comprehensive income (loss)
Amount excluded from effectiveness testing	3	5
Gain (loss) reclassified from Accumulated other comprehensive loss
Amount excluded from effectiveness testing	4	1
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	3	31
Gain (loss) reclassified from Accumulated other comprehensive loss
Derivatives designated as cash flow hedges	8	11
Currency exchange contracts | Gain (loss) on sale of business | Net Investment Hedging | Derivatives designated as hedges
Gain (loss) recognized in other comprehensive income (loss)
Effective portion	11	(14)
Gain (loss) reclassified from Accumulated other comprehensive loss
Effective portion	0	0
Commodity contracts | Cost of products sold | Cash flow hedging
Gain (loss) recognized in other comprehensive income (loss)
Derivatives designated as cash flow hedges	1	2
Gain (loss) reclassified from Accumulated other comprehensive loss
Derivatives designated as cash flow hedges	$ (1)	$ 0

RESTRUCTURING CHARGES - Narrati

RESTRUCTURING CHARGES - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		45 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Restructuring Cost and Reserve [Line Items]
Restructuring charges	$ 63	$ 10
Estimated charges	375
Workforce reductions
Restructuring Cost and Reserve [Line Items]
Restructuring charges	59	2
Estimated charges	216
Plant closing and other
Restructuring Cost and Reserve [Line Items]
Restructuring charges	4	$ 7
Estimated charges	$ 96
COVID-19
Restructuring Cost and Reserve [Line Items]
Restructuring charges			$ 382
COVID-19 | Workforce reductions
Restructuring Cost and Reserve [Line Items]
Restructuring charges			199
COVID-19 | Plant closing and other
Restructuring Cost and Reserve [Line Items]
Restructuring charges			$ 184

RESTRUCTURING CHARGES - Restruc

RESTRUCTURING CHARGES - Restructuring Program Charges (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Restructuring Cost and Reserve [Line Items]
Total before income taxes	$ 63	$ 10
Income tax benefit	14	2
Total after income taxes	$ 49	$ 8
Per ordinary share - diluted (USD per share)	$ 0.12	$ 0.02
Workforce reductions
Restructuring Cost and Reserve [Line Items]
Total before income taxes	$ 59	$ 2
Plant closing and other
Restructuring Cost and Reserve [Line Items]
Total before income taxes	$ 4	$ 7

RESTRUCTURING CHARGES - Restr_2

RESTRUCTURING CHARGES - Restructuring Program Charges Related to Segments (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Restructuring Cost and Reserve [Line Items]
Restructuring charges	$ 63	$ 10
Operating segments | Electrical Americas
Restructuring Cost and Reserve [Line Items]
Restructuring charges	7	2
Operating segments | Electrical Global
Restructuring Cost and Reserve [Line Items]
Restructuring charges	24	3
Operating segments | Aerospace
Restructuring Cost and Reserve [Line Items]
Restructuring charges	8	1
Operating segments | Vehicle
Restructuring Cost and Reserve [Line Items]
Restructuring charges	24	2
Corporate
Restructuring Cost and Reserve [Line Items]
Restructuring charges	$ 0	$ 1

RESTRUCTURING CHARGES - Liabili

RESTRUCTURING CHARGES - Liabilities Related to Restructuring (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Restructuring Reserve [Roll Forward]
Balance at beginning of period	$ 41
Liability recognized, net	63	$ 10
Payments, utilization and translation	(18)
Balance at end of period	86
Workforce reductions
Restructuring Reserve [Roll Forward]
Balance at beginning of period	35
Liability recognized, net	59	2
Payments, utilization and translation	(14)
Balance at end of period	80
Plant closing and other
Restructuring Reserve [Roll Forward]
Balance at beginning of period	6
Liability recognized, net	4	$ 7
Payments, utilization and translation	(3)
Balance at end of period	$ 7

BUSINESS SEGMENT INFORMATION (D

BUSINESS SEGMENT INFORMATION (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Segment Reporting Information, Profit (Loss) [Abstract]
Net sales	$ 5,943	$ 5,483
Intangible asset amortization expense	(106)	(124)
Interest expense - net	(30)	(50)
Pension and other postretirement benefits income	12	11
Restructuring program charges	(63)	(10)
Other expense - net	(184)	(148)
Income before income taxes	1,001	762
Income tax expense	179	123
Net income	822	639
Less net income for noncontrolling interests	(1)	(1)
Net income attributable to Eaton ordinary shareholders	821	638
Electrical Americas
Segment Reporting Information, Profit (Loss) [Abstract]
Net sales	2,690	2,294
Electrical Global
Segment Reporting Information, Profit (Loss) [Abstract]
Net sales	1,500	1,500
Aerospace
Segment Reporting Information, Profit (Loss) [Abstract]
Net sales	871	803
Vehicle
Segment Reporting Information, Profit (Loss) [Abstract]
Net sales	724	739
eMobility
Segment Reporting Information, Profit (Loss) [Abstract]
Net sales	158	147
Operating segments
Segment Reporting Information, Profit (Loss) [Abstract]
Net sales	5,943	5,483
Segment operating profit (loss)	1,371	1,082
Operating segments | Electrical Americas
Segment Reporting Information, Profit (Loss) [Abstract]
Net sales	2,690	2,294
Segment operating profit (loss)	785	525
Restructuring program charges	(7)	(2)
Operating segments | Electrical Global
Segment Reporting Information, Profit (Loss) [Abstract]
Net sales	1,500	1,500
Segment operating profit (loss)	274	274
Restructuring program charges	(24)	(3)
Operating segments | Aerospace
Segment Reporting Information, Profit (Loss) [Abstract]
Net sales	871	803
Segment operating profit (loss)	201	180
Restructuring program charges	(8)	(1)
Operating segments | Vehicle
Segment Reporting Information, Profit (Loss) [Abstract]
Net sales	724	739
Segment operating profit (loss)	116	107
Restructuring program charges	(24)	(2)
Operating segments | eMobility
Segment Reporting Information, Profit (Loss) [Abstract]
Net sales	158	147
Segment operating profit (loss)	$ (4)	$ (4)