Eaton Corp plcETN
Eaton Corp plc Debt Disclosure
DEBT
A summary of long-term debt, including the current portion, is as follows:
| December 31 | |||||||||||
| (In millions) | 2024 | 2023 | |||||||||
0.75% Euro notes due 2024 | $ | — | $ | 608 | |||||||
| Floating rate Euro notes due 2024 | — | 332 | |||||||||
6.50% debentures due 2025 | 145 | 145 | |||||||||
0.70% Euro notes due 2025 | 520 | 553 | |||||||||
0.128% Euro notes due 2026 | 935 | 995 | |||||||||
3.10% senior notes due 2027 | 700 | 700 | |||||||||
4.35% senior notes due 2028 | 500 | 500 | |||||||||
7.65% debentures due 2029 | 200 | 200 | |||||||||
0.577% Euro notes due 2030 | 624 | 663 | |||||||||
3.601% Euro notes due 2031 | 520 | — | |||||||||
4.00% senior notes due 2032 | 700 | 700 | |||||||||
4.15% sustainability-linked senior notes due 2033 | 1,300 | 1,300 | |||||||||
5.45% debentures due 2034 | 137 | 137 | |||||||||
3.802% Euro notes due 2036 | 520 | — | |||||||||
5.80% notes due 2037 | 240 | 240 | |||||||||
4.15% senior notes due 2042 | 1,000 | 1,000 | |||||||||
3.92% senior notes due 2047 | 300 | 300 | |||||||||
4.70% senior notes due 2052 | 700 | 700 | |||||||||
5.25% to 7.875% notes (maturities ranging from 2026 to 2035) | 99 | 165 | |||||||||
| Other | 13 | 25 | |||||||||
| Total long-term debt | 9,152 | 9,261 | |||||||||
| Less current portion of long-term debt | (674) | (1,017) | |||||||||
| Long-term debt less current portion | $ | 8,478 | $ | 8,244 | |||||||
Substantially all these long-term debt instruments are fully and unconditionally guaranteed on an unsubordinated, unsecured basis by Eaton and certain of its direct and indirect subsidiaries (the Senior Notes). Further, as of December 31, 2024, all of these long-term debt instruments, except the 0.70% Euro notes due 2025, the 0.128% Euro notes due 2026, the 0.577% Euro notes due 2030, the 3.601% Euro notes due 2031, and the 3.802% Euro notes due 2036 are registered by Eaton Corporation under the Securities Act of 1933, as amended (the Registered Senior Notes).
On May 21, 2024, a subsidiary of Eaton issued Euro denominated notes (2024 Euro Notes) with a face value of €1,000 million ($1,084 million), in accordance with Regulation S promulgated under the Securities Act of 1933, as amended. The 2024 Euro Notes are comprised of two tranches of €500 million each, which mature in 2031 and 2036, with interest payable annually at a respective rate of 3.601% and 3.802%. The issuer received proceeds totaling €995 million ($1,079 million) from the issuance, net of financing costs. The 2024 Euro Notes are fully and unconditionally guaranteed on an unsubordinated, unsecured basis by Eaton and certain of its direct and indirect subsidiaries. The 2024 Euro Notes contain customary optional redemption and par call provisions. The 2024 Euro Notes also contain a change of control provision which requires the Company to make an offer to purchase all or any part of the 2024 Euro Notes at a purchase price of 101% of the principal amount plus accrued and unpaid interest. The capitalized deferred financing fees are amortized in Interest expense - net over the respective terms of the 2024 Euro Notes. The 2024 Euro Notes are subject to customary non-financial covenants.
On September 30, 2024, the Company replaced its existing $500 million 364-day revolving credit facility with a new $500 million 364-day revolving credit facility that will expire on September 29, 2025. The Company also has a $2,500 million five-year revolving credit facility that will expire on October 1, 2027. The revolving credit facilities totaling $3,000 million are used to support commercial paper borrowings and are fully and unconditionally guaranteed by Eaton and certain of its direct and indirect subsidiaries on an unsubordinated, unsecured basis. There were no borrowings outstanding under Eaton’s revolving credit facilities at December 31, 2024. The Company maintains access to the commercial paper markets through its $3,000 million commercial paper program, of which none was outstanding on December 31, 2024.
In addition to the revolving credit facilities, the Company also had available lines of credit of $938 million from various banks primarily for the issuance of letters of credit, of which there was $420 million outstanding at December 31, 2024. Borrowings outside the United States are generally denominated in local currencies.
There was no short-term debt outstanding at December 31, 2024. Short-term debt of $8 million at December 31, 2023 was entirely comprised of short-term debt outside the United States.
Eaton is in compliance with each of its debt covenants for all periods presented.
Maturities of long-term debt for each of the next five years are as follows:
| (In millions) | |||||
| 2025 | $ | 674 | |||
| 2026 | 1,015 | ||||
| 2027 | 705 | ||||
| 2028 | 503 | ||||
| 2029 | 202 | ||||
Interest paid on debt is as follows:
| (In millions) | |||||
| 2024 | $ | 329 | |||
| 2023 | 319 | ||||
| 2022 | 250 | ||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2024 | Feb 27, 2025 | Showing above |
| 2023 | Feb 29, 2024 | |
| 2022 | Feb 23, 2023 | |
| 2021 | Feb 23, 2022 | |
| 2020 | Feb 24, 2021 | |
| 2019 | Feb 26, 2020 | |
| 2018 | Feb 27, 2019 | |
| 2017 | Feb 28, 2018 | |
| 2016 | Feb 22, 2017 | |
| 2015 | Feb 24, 2016 | |
About Debt Disclosures
Debt disclosures detail a company's borrowing structure — the types of instruments, interest rates, maturity schedule, and covenant restrictions that define its financial obligations and flexibility. This section is essential for assessing refinancing risk, interest rate exposure, and the margin of safety against financial distress.
Key signals: the maturity schedule reveals concentration risk — large maturities within 1-2 years during tight credit markets can force dilutive refinancing or asset sales. Compare the fair value of debt against carrying amount to gauge whether the market views the company's credit risk differently than the balance sheet suggests. Watch covenant compliance disclosures for tightening cushions, especially leverage and interest coverage ratios. Variable-rate debt exposure quantifies sensitivity to interest rate changes. Secured versus unsecured mix affects recovery rates and future borrowing capacity. Compare net debt-to-EBITDA against industry peers and covenant limits to assess financial health.