Eaton Corp. plc, balance sheet: property, plant and equipment

US$ in millions

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Land and buildings	2,241)	2,129)	2,227)	2,184)	2,440)
Machinery and equipment	6,497)	5,885)	5,591)	5,404)	6,266)
Gross property, plant and equipment	8,738)	8,014)	7,818)	7,588)	8,706)
Accumulated depreciation	(5,208)	(4,867)	(4,754)	(4,624)	(5,210)
Net property, plant and equipment	3,530)	3,147)	3,064)	2,964)	3,496)

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Item	Description	The company
Gross property, plant and equipment	Amount before accumulated depreciation, depletion and amortization of physical assets used in the normal conduct of business and not intended for resale. Examples include, but are not limited to, land, buildings, machinery and equipment, office equipment, and furniture and fixtures.	Eaton Corp. plc gross property, plant and equipment increased from 2021 to 2022 and from 2022 to 2023.
Net property, plant and equipment	Amount after accumulated depreciation, depletion and amortization of physical assets used in the normal conduct of business to produce goods and services and not intended for resale. Examples include, but are not limited to, land, buildings, machinery and equipment, office equipment, and furniture and fixtures.	Eaton Corp. plc net property, plant and equipment increased from 2021 to 2022 and from 2022 to 2023.

Eaton Corp. plc, asset age ratios

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Average age ratio	59.60%	60.73%	60.81%	60.94%	59.84%
Estimated total useful life (years)	20	20	18	19	19
Estimated age, time elapsed since purchase (years)	12	12	11	11	11
Estimated remaining life (years)	8	8	7	7	8

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Asset age ratio	Description	The company
Average age ratio	As long as straight-line depreciation is used, this is an accurate estimate of asset age as a percentage of depreciable life. The relative age is a useful measure of whether the company fixed asset base is old or new. Newer assets are likely to be more efficient.	Eaton Corp. plc average age ratio of depreciable property, plant and equipment improved from 2021 to 2022 and from 2022 to 2023.
Estimated total useful life	Over longer time periods, this ratio is a useful measure of company depreciation policy and can be used for comparisons with competitors.	Eaton Corp. plc estimated total useful life of depreciable property, plant and equipment increased from 2021 to 2022 and from 2022 to 2023.
Estimated time elapsed since purchase	The approximate age in years of a company fixed assets. Useful for comparison purposes.	Eaton Corp. plc estimated time elapsed since purchase of depreciable property, plant and equipment deteriorated from 2021 to 2022 and from 2022 to 2023.
Estimated remaining life		Eaton Corp. plc estimated remaining life of depreciable property, plant and equipment increased from 2021 to 2022 and from 2022 to 2023.

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Selected Financial Data (US$ in millions)
Accumulated depreciation	5,208)	4,867)	4,754)	4,624)	5,210)
Gross property, plant and equipment	8,738)	8,014)	7,818)	7,588)	8,706)
Asset Age Ratio
Average age¹	59.60%	60.73%	60.81%	60.94%	59.84%

2023 Calculations

¹ Average age = 100 × Accumulated depreciation ÷ Gross property, plant and equipment
= 100 × 5,208 ÷ 8,738 = 59.60%

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Asset age ratio	Description	The company
Average age	As long as straight-line depreciation is used, this is an accurate estimate of asset age as a percentage of depreciable life. The relative age is a useful measure of whether the company fixed asset base is old or new. Newer assets are likely to be more efficient.	Eaton Corp. plc average age ratio of depreciable property, plant and equipment improved from 2021 to 2022 and from 2022 to 2023.

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Selected Financial Data (US$ in millions)
Gross property, plant and equipment	8,738)	8,014)	7,818)	7,588)	8,706)
Depreciation of property, plant and equipment	429)	408)	426)	408)	465)
Asset Age Ratio (Years)
Estimated total useful life¹	20	20	18	19	19

2023 Calculations

¹ Estimated total useful life = Gross property, plant and equipment ÷ Depreciation of property, plant and equipment
= 8,738 ÷ 429 = 20

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Asset age ratio	Description	The company
Estimated total useful life	Over longer time periods, this ratio is a useful measure of company depreciation policy and can be used for comparisons with competitors.	Eaton Corp. plc estimated total useful life of depreciable property, plant and equipment increased from 2021 to 2022 and from 2022 to 2023.

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Selected Financial Data (US$ in millions)
Accumulated depreciation	5,208)	4,867)	4,754)	4,624)	5,210)
Depreciation of property, plant and equipment	429)	408)	426)	408)	465)
Asset Age Ratio (Years)
Time elapsed since purchase¹	12	12	11	11	11

2023 Calculations

¹ Time elapsed since purchase = Accumulated depreciation ÷ Depreciation of property, plant and equipment
= 5,208 ÷ 429 = 12

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Asset age ratio	Description	The company
Estimated time elapsed since purchase	The approximate age in years of a company fixed assets. Useful for comparison purposes.	Eaton Corp. plc estimated time elapsed since purchase of depreciable property, plant and equipment deteriorated from 2021 to 2022 and from 2022 to 2023.

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Selected Financial Data (US$ in millions)
Net property, plant and equipment	3,530)	3,147)	3,064)	2,964)	3,496)
Depreciation of property, plant and equipment	429)	408)	426)	408)	465)
Asset Age Ratio (Years)
Estimated remaining life¹	8	8	7	7	8

2023 Calculations

¹ Estimated remaining life = Net property, plant and equipment ÷ Depreciation of property, plant and equipment
= 3,530 ÷ 429 = 8

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Asset age ratio	Description	The company
Estimated remaining life		Eaton Corp. plc estimated remaining life of depreciable property, plant and equipment increased from 2021 to 2022 and from 2022 to 2023.

Eaton Corp. plc (NYSE:ETN)

Analysis of Property, Plant and Equipment