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SECURITIES AND EXCHANGE COMMISSION
 Washington, DC 20549
 FORM 11-K
 Annual Report Pursuant to Section 15(d) of the
Securities Exchange Act of 1934
 þ
    
    Annual report pursuant to Section 15(d) of the Securities Exchange Act of 1934
 For the fiscal year ended December 31, 2010
 Or
 o
    
    Transition report pursuant to Section 15(d) of the Securities Exchange Act of 1934
 For the transition period from _____________ to ___________
 Commission file number
 A.
    
    Full title of the plan and the address of the plan, if different from that of
the issuer named below:
 Eaton Personal Investment Plan
 B.
    
    Name of issuer of the securities held pursuant to the plan and the address of its
principal executive office:
 
 SIGNATURES
  (Name of Plan)
EATON PERSONAL INVESTMENT PLANDate: June 22, 2011
    By:
    Eaton Corporation PensionAdministration CommitteeBy:
    /s/ B. K. RawotB. K. RawotSenior Vice President and Controller
Eaton Corporation




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INDEX
 PageReport of Independent Registered Public Accounting FirmFinancial Statements:Statement of Net Assets Available for Benefits
    
    
    2Statement of Changes in Net Assets Available for Benefits
    
    
    3Notes to Financial Statements
    
    
    4 - 14Supplemental Schedule:Schedule of Assets Held for Investment Purposes at End of Year
    
    
    15




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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM




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December 312010
    
    
    2009ASSETSReceivable  Employer contributions
    
    $
    7,355
    
    
    $
    2,813Receivable  Employee contributions
    
    
    58,563
    
    
    
    47,276Receivable  Interest
    
    
    2,047
    
    
    
    2,077Notes receivable from participants
    
    
    2,567,887
    
    
    
    2,452,521Total Receivables
    
    
    2,635,852
    
    
    
    2,504,687Investments:Plan interest in Eaton EmployeeSavings Trust
    
    
    75,425,998
    
    
    
    67,421,191Plan interest in Eaton EmployeeSavings Trust  Eaton Stable Value Fund
    
    
    9,154,618
    
    
    
    8,676,310Total Investments
    
    
    84,580,616
    
    
    
    76,097,501Net Assets Available for Benefits at Fair Value
    
    
    87,216,468
    
    
    
    78,602,188Adjustment from fair value to contract value for fully benefit-
responsive investment contract
    
    
    (319,333
    )
    
    
    (155,548
    )Net Assets Available for Benefits
    
    $
    86,897,135
    
    
    $
    78,446,640
 See accompanying notes.
 - 2 -




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Year Ended December 312010
    
    
    2009Additions to Net Assets Attributed to:Contributions:Employer
    
    $
    302,041
    
    
    $
    295,940Employee
    
    
    3,954,145
    
    
    
    3,495,323Rollover
    
    
    156,433
    
    
    
    53,7904,412,619
    
    
    
    3,845,053Plan interest in Eaton Employee SavingsTrust investment gain
    
    
    11,798,283
    
    
    
    11,683,241Interest and dividend income
    
    
    134,603
    
    
    
    160,229Total Additions before Transfers
    
    
    16,345,505
    
    
    
    15,688,523Transfers from other plans
    
    
    
    
    
    
    43,611Total Additions
    
    
    16,345,505
    
    
    
    15,732,134Deductions from Net Assets Attributed to:Benefits paid to participants
    
    
    7,755,386
    
    
    
    6,752,515Administrative expenses
    
    
    30,670
    
    
    
    32,823Total Deductions before Transfers
    
    
    7,786,056
    
    
    
    6,785,338Transfers to other plans
    
    
    108,954
    
    
    
    33,635Total Deductions
    
    
    7,895,010
    
    
    
    6,818,973Net Increase
    
    
    8,450,495
    
    
    
    8,913,161Net Assets Available for Benefits:Beginning of Year
    
    
    78,446,640
    
    
    
    69,533,479End of Year
    
    $
    86,897,135
    
    
    $
    78,446,640
 See accompanying notes.
 - 3 -




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1
    
    Description of Plan
  General:
  Eligibility:
  Contributions:
  - 4 -




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1
    
    Description of Plan, Continued
 Contributions, Continued:
    Participants Accounts:
  Vesting:
  Notes Receivable from Participants
   Hardship Withdrawals:
  - 5 -




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1
    
    Description of Plan, Continued
 Payment of Benefits:
  Investment Options:
  2
    
    Summary of Significant Accounting Policies
 Basis of Accounting:
  Investment Valuation and Income Recognition:
    - 6 -




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2
    
    Summary of Significant Accounting Policies, Continued
 Investment Valuation and Income Recognition, Continued:
  Use of Estimates:
  Administrative Fees:
  Plan Termination:
  Risks and Uncertainties:
  Reclassifications:
  - 7 -




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2
    
    Summary of Significant Accounting Policies, Continued
 Subsequent Events:
  3
    
    Tax Status
  4
    
    Investments
   2010
    
    
    2009Registered investment companies
    
    $
    1,218,817,740
    
    
    $
    1,054,862,616Eaton common shares
    
    $
    773,662,830
    
    
    $
    566,855,536Common collective trusts
    
    $
    408,092,967
    
    
    $
    348,625,820U.S. government securities
    
    $
    138,676,004
    
    
    $
    115,814,070Guaranteed investment contracts
    
    $
    130,534,458
    
    
    $
    112,783,573Interest-bearing cash
    
    $
    45,318,397
    
    
    $
    48,056,220Corporate debt instruments
    
    $
    50,669,806
    
    
    $
    40,675,433Receivables
    
    $
    8,908,308
    
    
    $
    13,517,793Non interest-bearing cash
    
    $
    
    
    
    $
    9,417Liabilities
    
    $
    (8,924,009
    )
    
    $
    (12,943,413
    )Adjustment from fair value to contract value
for fully benefit-responsive investment contract
    
    $
    (4,961,335
    )
    
    $
    (2,393,042
    )Total Investments
    
    $
    2,760,795,166
    
    
    $
    2,285,864,023
  - 8 -




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4   Investments, Continued
  2010
    
    
    2009Interest and dividend income
    
    $
    44,010,926
    
    
    $
    42,408,799Net appreciation in fair value of investment funds:Registered investment companies
    
    
    139,351,523
    
    
    
    228,371,890Separate accounts
    
    
    319,014,837
    
    
    
    130,869,711Common collective trusts
    
    
    24,433,596
    
    
    
    32,793,242$
    526,810,882
    
    
    $
    434,443,642
   2010
    
    
    2009Eaton Stable Value Fund
    
    
    N/A
    
    
    $
    130,724,187Fidelity Contrafund
    
    $
    157,309,901
    
    
    $
    137,679,930Vanguard Institutional Index
    
    $
    152,898,887
    
    
    $
    138,868,213EB Money Market Fund
    
    $
    163,797,652
    
    
    $
    155,936,734Eaton Fixed Income Fund
    
    $
    201,626,331
    
    
    $
    167,290,070Eaton Common Shares Fund (unitized fund
consisting of Eaton Shares and cash)
    
    $
    791,626,366
    
    
    $
    580,209,860
 - 9 -




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5   Party-in-Interest Transactions
   6   Benefit-Responsive Investment Fund
    - 10 -




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6   Benefit-Responsive Investment Fund
     7   Fair Value Measurements
  
 
 
 - 11 -




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7   Fair Value Measurements, Continued
  Registered investment companies (mutual funds), and separate accounts:
 Common collective trusts
 Guaranteed investment contract
   Level 1
    
    
    Level 2
    
    
    Level 3Fair Value
    
    
    Fair Value
    
    
    Fair Value
    
    
    TotalsRegistered investment companiesLarge-cap equity funds
    
    $
    18,328,632
    
    
    $
    
    
    
    $
    
    
    
    $
    18,328,632Balanced funds
    
    
    6,350,151
    
    
    
    
    
    
    
    
    
    
    
    6,350,151International equity funds
    
    
    4,301,998
    
    
    
    
    
    
    
    
    
    
    
    4,301,998Bond funds
    
    
    2,491,459
    
    
    
    
    
    
    
    
    
    
    
    2,491,459Mid-cap equity funds
    
    
    2,376,873
    
    
    
    
    
    
    
    
    
    
    
    2,376,873Small-cap equity funds
    
    
    1,503,556
    
    
    
    
    
    
    
    
    
    
    
    1,503,556REIT funds
    
    
    616,106
    
    
    
    
    
    
    
    
    
    
    
    616,106World equity funds
    
    
    106,519
    
    
    
    
    
    
    
    
    
    
    
    106,519Total
    
    $
    36,075,294
    
    
    $
    
    
    
    $
    
    
    
    $
    36,075,294
 - 12 -




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7 Fair Value Measurements, Continued
 Level 1
    
    
    Level 2
    
    
    Level 3Fair Value
    
    
    Fair Value
    
    
    Fair Value
    
    
    TotalsGuaranteed investment contractsStable value funds
    
    
    
    
    
    
    9,154,618
    
    
    
    
    
    
    
    9,154,618Common collective trustsMoney market funds
    
    
    
    
    
    
    7,932,682
    
    
    
    
    
    
    
    7,932,682Asset allocation funds
    
    
    
    
    
    
    3,643,804
    
    
    
    
    
    
    
    3,643,804Bond funds
    
    
    
    
    
    
    2,291,896
    
    
    
    
    
    
    
    2,291,896International equity funds
    
    
    
    
    
    
    1,203,458
    
    
    
    
    
    
    
    1,203,458Mid-cap equity funds
    
    
    
    
    
    
    858,795
    
    
    
    
    
    
    
    858,795Total
    
    
    
    
    
    
    15,930,635
    
    
    
    
    
    
    
    15,930,635Separate accountsCompany stock funds
    
    
    
    
    
    
    13,250,180
    
    
    
    
    
    
    
    13,250,180Bond funds
    
    
    
    
    
    
    10,169,889
    
    
    
    
    
    
    
    10,169,889Total
    
    
    
    
    
    
    23,420,069
    
    
    
    
    
    
    
    23,420,069Total assets at fair value
    
    $
    36,075,294
    
    
    $
    48,505,322
    
    
    $
    
    
    
    $
    84,580,616
  Level 1
    
    
    Level 2
    
    
    Level 3Fair Value
    
    
    Fair Value
    
    
    Fair Value
    
    
    TotalsRegistered investment companiesLarge-cap equity funds
    
    $
    17,031,598
    
    
    $
    
    
    
    $
    
    
    
    $
    17,031,598Balanced funds
    
    
    6,153,849
    
    
    
    
    
    
    
    
    
    
    
    6,153,849International equity funds
    
    
    4,144,006
    
    
    
    
    
    
    
    
    
    
    
    4,144,006Bond funds
    
    
    2,230,267
    
    
    
    
    
    
    
    
    
    
    
    2,230,267Mid-cap equity funds
    
    
    1,849,489
    
    
    
    
    
    
    
    
    
    
    
    1,849,489Small-cap equity funds
    
    
    1,171,931
    
    
    
    
    
    
    
    
    
    
    
    1,171,931REIT funds
    
    
    333,372
    
    
    
    
    
    
    
    
    
    
    
    333,372World equity funds
    
    
    110,637
    
    
    
    
    
    
    
    
    
    
    
    110,637Total
    
    $
    33,025,149
    
    
    $
    
    
    
    $
    
    
    
    $
    33,025,149
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7   Fair Value Measurements, Continued
 Level 1
    
    
    Level 2
    
    
    Level 3Fair Value
    
    
    Fair Value
    
    
    Fair Value
    
    
    TotalsGuaranteed investment contractsStable value funds
    
    
    
    
    
    
    8,676,310
    
    
    
    
    
    
    
    8,676,310Common collective trustsMoney market funds
    
    
    
    
    
    
    7,426,871
    
    
    
    
    
    
    
    7,426,871Asset allocation funds
    
    
    
    
    
    
    2,620,631
    
    
    
    
    
    
    
    2,620,631Bond funds
    
    
    
    
    
    
    1,918,128
    
    
    
    
    
    
    
    1,918,128International equity funds
    
    
    
    
    
    
    1,161,009
    
    
    
    
    
    
    
    1,161,009Mid-cap equity funds
    
    
    
    
    
    
    724,251
    
    
    
    
    
    
    
    724,251Total
    
    
    
    
    
    
    13,850,890
    
    
    
    
    
    
    
    13,850,890Separate accountsCompany stock funds
    
    
    
    
    
    
    10,728,356
    
    
    
    
    
    
    
    10,728,356Bond funds
    
    
    
    
    
    
    9,816,796
    
    
    
    
    
    
    
    9,816,796Total
    
    
    
    
    
    
    20,545,152
    
    
    
    
    
    
    
    20,545,152Total assets at fair value
    
    $
    33,025,149
    
    
    $
    43,072,352
    
    
    $
    
    
    
    $
    76,097,501
 8   Recent Accounting Pronouncements
  - 14 -




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(b)
    
    ( c )Identity of Issue,
    
    Description of Investment Including
    
    
    
    (e)Borrower, Lessor,
    
    Maturity Date, Rate of Interest,
    
    (d)
    
    Current(a)
    
    or Similar Party
    
    Collateral, Par or Maturity Value
    
    Cost
    
    Value*
    
    Interest in Eaton Employee Savings Trust Master Trust
    
    Master Trust
    
    N/A
    
    $
    75,425,998*
    
    Participant Loans
    
    4.0  9.7%; various maturity dates
    
    N/A
    
    $
    2,567,887*
    
    Eaton Stable Value Fund  see Footnote 1
    
    Guaranteed Investment Contract
    
    N/A
    
    $
    8,835,285$
    86,829,170
 
 Footnote 1  denotes contract value*
    
    Party-in-interest to the Plan. - 15 -




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Consent of Independent Registered Public Accounting Firm