Investor Presentaiton

Note 11. INCOME TAXES Eaton Corporation plc is domiciled in Ireland. Income (loss) before income taxes and income tax expense (benefit) are summarized below based on the geographic location of the operation to which such earnings and income taxes are attributable. (In millions) Ireland Foreign Total income before income taxes (In millions) Current Ireland Foreign Total current income tax expense Deferred Ireland Foreign Total deferred income tax expense (benefit) Total income tax expense Income (loss) before income taxes 2022 2021 2020 $ 198 $ 2,713 153 $ (132) 2,743 1,878 $ 2,911 $ 2,896 $ 1,746 2022 Income tax expense (benefit) 2021 2020 $ 3 $ 50 $ 15 570 730 441 573 780 456 $ 13 (2) (141) (28) (125) (128) (30) (125) 445 $ 750 $ 331 Reconciliations of income taxes from the Ireland national statutory rate of 25% to the consolidated effective income tax rate are as follows: Income taxes at the applicable statutory rate Ireland operations Ireland tax on trading income Nondeductible interest expense Ireland Other net - 2022 2021 2020 25.0 % 25.0 % 25.0 % (1.3)% (0.7)% (0.2)% 1.0 % 0.6 % 2.7 % (0.5)% (0.2)% 0.4 % Foreign operations Tax impact on sale of businesses % 9.1 % 3.9% Earnings taxed at other than the applicable statutory tax rate (10.2)% (8.0)% (14.0)% Other items 1.6 % (0.1)% 1.6 % Worldwide operations Adjustments to tax liabilities Adjustments to valuation allowances Effective income tax expense rate (0.4)% 0.1 % 15.3 % 0.2 % (0.6)% % 0.2 % 25.9 % 19.0 % During 2022, income tax expense of $445 million was recognized (an effective tax rate of 15.3%) compared to income tax expense of $750 million in 2021 (an effective tax rate of 25.9%) and income tax expense of $331 million in 2020 (an effective tax rate of 19.0%). The decrease in the effective tax rate from 25.9% in 2021 to 15.3% in 2022, and the increase in the effective tax rate from 19.0% in 2020 to 25.9% in 2021, were primarily due to the one-time tax expense on the gain from the sale of the Hydraulics business in 2021 discussed in Note 2. 55

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