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 Savings 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 SAVINGS 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 - 13Supplemental Schedule:Schedule of Assets Held for Investment Purposes at End of Year
    
    
    14




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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM




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##### 



December 312010
    
    
    2009ASSETSReceivable  Employer contributions
    
    $
    1,553,172
    
    
    $
    Receivable  Employee contributions
    
    
    3,271,862
    
    
    
    2,826,023Receivable  Interest
    
    
    99,022
    
    
    
    108,761Notes receivable from participants
    
    
    59,886,044
    
    
    
    56,228,661Total Receivables
    
    
    64,810,100
    
    
    
    59,163,445Investments:Plan interest in Eaton Employee
Savings Trust
    
    
    2,548,444,959
    
    
    
    2,087,666,025Plan interest in Eaton Employee
Savings Trust  Eaton Stable Value Fund
    
    
    133,076,794
    
    
    
    124,440,918Total Investments
    
    
    2,681,521,753
    
    
    
    2,212,106,943Net Assets Available for Benefits, at Fair Value
    
    
    2,746,331,853
    
    
    
    2,271,270,388Adjustment from fair value to contract value for fully
benefit-
responsive investment contract
    
    
    (4,642,003
    )
    
    
    (2,237,494
    )Net Assets Available for Benefits
    
    $
    2,741,689,850
    
    
    $
    2,269,032,894
 See accompanying notes.
 - 2 -




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Year Ended December 312010
    
    
    2009Additions to Net Assets Attributed to:Contributions:Employer
    
    $
    20,619,017
    
    
    $
    11,258,427Employee
    
    
    93,961,868
    
    
    
    87,387,026Rollover
    
    
    7,818,621
    
    
    
    13,996,905122,399,506
    
    
    
    112,642,358Plan interest in Eaton Employee Savings
Trust investment gain
    
    
    515,160,601
    
    
    
    422,826,617Interest and dividend income
    
    
    3,120,921
    
    
    
    3,677,529Total Additions before Transfers
    
    
    640,681,028
    
    
    
    539,146,504Transfers from other plans
    
    
    5,698,219
    
    
    
    96,338Total Additions
    
    
    646,379,247
    
    
    
    539,242,842Deductions from Net Assets Attributed to:Benefits paid to participants
    
    
    173,204,643
    
    
    
    186,503,026Administrative expenses
    
    
    489,264
    
    
    
    525,695Total Deductions before Transfers
    
    
    173,693,907
    
    
    
    187,028,721Transfers to other plans
    
    
    28,384
    
    
    
    106,313Total Deductions
    
    
    173,722,291
    
    
    
    187,135,034Net Increase
    
    
    472,656,956
    
    
    
    352,107,808Net Assets Available for Benefits:Beginning of Year
    
    
    2,269,032,894
    
    
    
    1,916,925,086End of Year
    
    $
    2,741,689,850
    
    
    $
    2,269,032,894
 See accompanying notes.
 - 3 -




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1
    
    Description of PlanThe following description of The Eaton Savings Plan (the Plan) provides only general information.
Participants should refer to the Plan document and summary plan description, which is available
from the Companys Human Resources Department upon request, for a complete description of the
Plans provisions.General:Effective July 1, 1974, Eaton Corporation (Eaton, the Company, or the Plan Sponsor) established the
Plan. The Plan was established to encourage eligible employees to make systematic savings through
payroll deductions, to provide additional security at retirement and to acquire a proprietary
interest in the Company. Effective July 5, 1989 the portion of the Plan attributable to Company
contributions was designed to be invested primarily in Eaton Common Shares and constitute an
employee stock ownership plan within the meaning of Code Section 4975(e)(7). Effective January 1,
2002, the Plan was amended and restated to rename the Plan the Eaton Savings Plan. The Plan was
restated January 1, 2010 to incorporate previous amendments to the plan into the Plan document.Eligibility:An Eaton employee who is in the regular service of a class of an employee in a division or group to
which Eaton Corporation has extended eligibility for membership in the Plan (other than a temporary
employee who is hired for a specific, limited period of time or for the performance of a specific,
limited assignment or employees covered by a collective bargaining agreement that does not specify
coverage under the Plan) will be eligible to participate on any date established in accordance with
administrative procedure which follows the date an employee first incurs an hour of service.Effective April 1, 2011, newly hired employees will be automatically enrolled in the Plan.Contributions:Employee Contributions  Employees may make a combination of before-tax and after-tax contributions
ranging from 1% to 30% of their compensation. Catch-up contributions are permitted in the Plan,
allowing participants age 50 and older to defer an additional amount of their compensation as
prescribed by the Internal Revenue Code.Effective April 1, 2011, the contribution limit was raised to 50% of compensation.Employer Contributions  Participants of the Plan receive a Company matching contribution of 100%
of the first 3% of their compensation, plus 50% of the next 2% of compensation. The Company
matching contribution was suspended effective with the first full pay period beginning after April
1, 2009. The Company matching contribution was reinstated effective July 1, 2010.Contributions are subject to limitations on annual additions and other limitations imposed by the
Internal Revenue Code as defined in the Plan agreement.Rollover contributions from other Plans are also accepted, providing certain specified conditions
are met.
 - 4 -




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1
    
    Description of Plan, ContinuedParticipants Accounts:Each participants account is credited with the participants contributions, Company matching
contributions, and an allocation of the Plans earnings and is charged with an allocation of
administrative expenses. Allocations are based on participant account balances. The benefit to
which a participant is entitled is the benefit that can be provided from the participants account.Vesting:All participants are 100% vested, subject to certain provisions as defined by the Plan, in elective
deferrals, company contributions and rollover contributions made to the Plan, and actual earnings
thereon.Notes Receivable from Participants:Participants may borrow from their fund accounts up to a maximum equal to the lesser of $50,000 or
50% of their account balance (excluding any contributions made under a Savings Plan Individual
Retirement Account or Company contributions made in the previous 24 months), reduced by their
highest outstanding loan balance during the preceding 12 months. Loan terms range from 1-5 years
except for loans used for the purchase of a primary residence. The loans are secured by the balance
in the participants account and bear interest at a rate based on the prime interest rate as
determined by the Trustee. Principal and interest are paid through payroll deduction for active
employees. Terminated employees are permitted to make loan payments directly to Fidelity.In September 2010, the FASB issued an amendment, Plan Accounting-Defined Contribution Pension
Plans (Topic 962): Reporting Loans to Participants by Defined Contribution Pension Plans (ASU
2010-25), which provides guidance on how loans to participants should be classified and measured by
defined contribution pension plans. The amendment requires that participant loans be classified as
notes receivable from participants, which are segregated from plan investments and measured at
their unpaid principal balance plus any accrued but unpaid interest. This amendment requires
retrospective application to all periods presented. This amendment was adopted for the year ended
December 31, 2010, and retrospectively applied to December 31, 2009. Prior year amounts and
disclosures have been revised to reflect the retrospective application of adopting this new
amendment. There was no impact to the net assets as of December 31, 2010 or 2009, as a result of
the adoption.Hardship Withdrawals:Hardship withdrawals are permitted in accordance with Internal Revenue Service guidelines.Payment of Benefits:Upon termination of service, retirement, death or total and permanent disability, a participant is
eligible to receive a lump sum amount equal to the value of his or her account. A participant may
choose to take partial withdrawals.
 - 5 -




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2
    
    Summary of Significant Accounting PoliciesInvestment Options:Contributions may be invested in any of the fund options available under the Plan.Basis of Accounting:The financial statements of the Eaton Savings Plan are prepared on the accrual basis of accounting.Investment Valuation and Income Recognition:The Plans trustee is Fidelity Management Trust Company, and the Plans investments, excluding
notes receivable from participants, were invested in the Eaton Employee Savings Trust (Master
Trust), which was established for the investment of assets of the Plan and the Eaton Personal
Investment Plan. The fair value of the Plans interest in the individual funds of the Master Trust
is based on the value of the Plans interest in the fund as of January 1, 2002, plus actual
contributions and allocated investment income (loss) less actual distributions.Securities traded on a national securities exchange are valued at the last reported sales price on
the last business day of the Plan year. Investments traded in the over-the-counter market and
listed securities for which no sale was reported on that date are valued at the average of the last
reported bid and asked prices. Common/collective trust funds and pooled separate accounts are
valued at the redemption value of the units held at year-end. Participant loans are valued at cost,
which approximates fair value. The Eaton Stable Value Fund invests primarily in investment
contracts issued by insurance companies, banks or other financial institutions, including
investment contracts backed by high-quality fixed income securities.Under the revised accounting standards, investment contracts held by a defined-contribution plan
are required to be reported at fair value. However, contract value is the relevant measurement
attribute for that portion of the net assets available for benefits of a defined-contribution plan
attributable to fully benefit-responsive investment contracts because contract value is the amount
participants would receive if they were to initiate permitted transactions under the terms of the
Plan. The Statement of Net Assets Available for Benefits presents the fair value of the investment
contracts as well as the adjustment of the fully benefit-responsive investment contracts from fair
value to contract value. The Statement of Changes in Net Assets Available for Benefits is prepared
on a contract value basis.Purchases and sales of securities are recorded on a trade-date basis.Use of Estimates:The preparation of financial statements in conformity with generally accepted accounting principles
requires management to make estimates and assumptions that affect the reported amounts of assets
and liabilities and disclosures of contingent assets and liabilities at the date of the financial
statements and the reported amounts of revenue and expenses during the reporting period. Actual
results could differ from those estimates.
 - 6 -




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2
    
    Summary of Significant Accounting Policies, ContinuedAdministrative Fees:All administrative costs, management fees and expenses of the Plan are paid by the trustee from the
Master Trust unless such costs, fees and expenses are paid by the Company. The Company elected to
pay certain administrative costs during 2010 and 2009 on behalf of the Plan. Certain transaction
costs are paid by the employee.Plan Termination:The Company may amend, modify, suspend, or terminate the Plan. No amendment, modification,
suspension, or termination of the Plan shall have the effect of providing that any amounts then
held under the Plan may be used or diverted to any purpose other than for the exclusive benefit of
members or their beneficiaries.Risks and Uncertainties:The Master Trusts investments include investments, as listed in Footnote 4, with varying degrees
of risk, such as interest rate, credit and overall market volatility risks. Due to the level of
risk associated with certain investment securities, it is reasonably possible that changes in the
values of investment securities will occur in the near term and such changes could materially
affect the amounts reported in the statement of net assets available for Plan benefits.Reclassifications:Certain prior year amounts have been reclassified to conform with the current years presentation.Subsequent Events:Management evaluates events occurring subsequent to the date of the financial statements in
determining the accounting for and disclosure of transactions and events that affect the financial
statements.3
    
    Tax StatusOn May 16, 2003, the Internal Revenue Service stated that the Plan, as then designed, was in
compliance with the applicable requirements of the Internal Revenue Code. The Plan has been
amended; however, the Plan Administrator and the Plans tax counsel believe that the Plan is
currently designed and being operated in compliance with the applicable requirements of the
Internal Revenue Code. Therefore, they believe that the Plan was qualified and the related trust
was tax-exempt as of the financial statement date.
 - 7 -




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4
    
    InvestmentsFidelity Management Trust Company, trustee and recordkeeper of the Plan, holds the Plans
investment assets and executes investment transactions, and all investment assets of the Plan are
pooled for investment purposes in the Master Trust.A summary of the assets of the Master Trust is as follows:
 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
 The Plan had a 96.9% and 96.7% interest in the assets of the Master Trust as of December 31, 2010
and 2009, respectively.Investment income and administrative expenses relating to the Master Trust are allocated to the
individual Plans based upon the average balance invested by each Plan in each of the individual
funds of the Master Trust. A summary of the Master Trusts net investment income allocated to the
participating Plans for the year ended December 31, 2010 and 2009, is as follows:
 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
 - 8 -




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4
    
    Investments, Continued
 At December 31, 2010 and 2009, respectively, the Eaton Fixed Income Fund was comprised of U.S.
government securities (69% and 69%), corporate debt instruments (25% and 24%), interest-bearing and
non interest-bearing cash (5% and 5%), and pooled separate accounts (1% and 2%).The Master Trust funds are invested in various investments through the Fidelity Management
Trust Company. Investments which constitute more than 5% of the Master Trusts net assets are:
 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 (A unitized fund
consisting of Eaton Shares and cash)
    
    $
    791,626,366
    
    
    $
    580,209,860
 5
    
    Party-in-Interest TransactionsParty-in-interest transactions included the investments in the common stock of Eaton and the
investment funds of the trustee and the payments of administrative expenses by the Company. Such
transactions are exempt from being prohibited transactions.During 2010 and 2009, the Master Trust received $18,201,828 and $18,218,408, respectively, in
common stock dividends from the Company.6
    
    Benefit-Responsive Investment FundThe Plan holds the Eaton Stable Value Fund, a fund managed by Vanguard, that invests in
benefit-responsive investment contracts. The fund is credited with earnings on the underlying
investments and charged for participant withdrawals and administrative expenses. The traditional
guaranteed investment contract issuers are contractually obligated to repay the principal and a
specified interest rate that is guaranteed to the Plan and the synthetic contract issuers are
contractually obligated to guarantee the payment of a specific interest rate to the Plan.As described in Note 2, because the guaranteed investment contracts are fully
benefit-responsive, contract value is the relevant measurement attribute for that portion of the
net assets available for benefits attributable to the guaranteed investment contract. Contract
value, as reported to the Plan by Vanguard, represents contributions made under the contracts, plus
earnings, less participant withdrawals and administrative expenses. Participants may ordinarily
direct the withdrawal or transfer of all or a portion of their investment at contract value.
 - 9 -




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6
    
    Benefit-Responsive Investment Fund, ContinuedThe average market yield of the Fund for 2010 and 2009 was 3.13% and 3.39%, respectively. This
yield is calculated based on actual investment income from the underlying investments for the last
month of the year, annualized and divided by the fair value of the investment portfolio on the
report date. The average yield of the Fund with an adjustment to reflect the actual interest rate
credited to participants in the Fund was 2.97% and 3.19%, respectively.There are no reserves against contract value for credit risk of the contract issuer or
otherwise. The crediting interest rate is based on a formula agreed upon with the issuer, but it
may not be less than zero percent. Such interest rates are reviewed quarterly for resetting.The fair value is based on various valuation approaches dependent on the underlying
investments of the contract.Certain events limit the ability of the Plan to transact at contract value with the issuers.
The Plan Administrator does not believe that the occurrence of any such value event, which would
limit the Plans ability to transact at contract value with participants is probable.The issuer may terminate the contract for cause at any time.7
    
    Transfers InOn October 12, 2010, the EMC Engineers, Inc. 401(k) Plan was merged into the Eaton Savings
Plan. As a result, 401(k) balances totaling $5,480,249 and a total of $92,152 in notes receivable
from participants were transferred into the Eaton Savings Plan as a result of the plan merger. The
balance of the transfers relate to the other Eaton plans.8
    
    Fair Value MeasurementsIn accordance with ASC 820, the Plan has categorized the financial instruments, based on the
degree of subjectivity inherent in the valuation technique, into a fair value hierarchy of three
levels, as follows: Level 1  inputs to the valuation methodology are quoted prices (unadjusted) for identical
assets or liabilities in active markets. Level 2  inputs to the valuation methodology include quoted prices for similar assets and
liabilities in active markets, and inputs that are observable for the asset or liability, either
directly or indirectly, for substantially the full term of the financial instrument. Level 3  inputs to the valuation methodology are unobservable and significant to the fair
value measurement.Following is a description of the valuation methodologies used for assets measured at fair
value. There have been no changes in the methodologies used at December 31, 2010 and 2009.
 - 10 -




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##### 



8
    
    Fair Value Measurements, ContinuedRegistered investment companies (mutual funds), and separate accounts:Valued at the net asset
value (NAV) of shares held by the Plan at year end. Separate accounts may include U.S. government
securities and corporate debt securities.Common collective trusts: Valued at the net unit value of units held by the trust at year
end. The unit value is determined by dividing the Total Value of fund Assets by the Total Number
of Units of the Fund owned.Guaranteed investment contract: Valued at fair value by discounting the related cash flows
based on current yields of similar instruments with comparable durations considering the
credit-worthiness of the issuer.The methods described above may produce a fair value calculation that may not be indicative of
net realizable value or reflective of future fair values. Furthermore, while the Plan believes its
valuation methods are appropriate and consistent with other market participants, the use of
different methodologies or assumptions to determine the fair value of certain financial instruments
could result in a different fair value measurement at the reporting date.
 - 11 -




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##### 



8
    
    Fair Value Measurements, ContinuedThe following table sets forth by level on a recurring basis, within the fair value hierarchy,
the Plans assets at fair value as of December 31, 2010. There are no assets which fall under
Level 3 of the hierarchy.
 Level 1
    
    
    Level 2
    
    
    Level 3Fair Value
    
    
    Fair Value
    
    
    Fair Value
    
    
    TotalsRegistered investment companiesLarge-cap equity funds
    
    $
    530,871,916
    
    
    $
    
    
    
    $
    
    
    
    $
    530,871,916Balanced funds
    
    
    185,158,016
    
    
    
    
    
    
    
    
    
    
    
    185,158,016International equity
funds
    
    
    166,590,792
    
    
    
    
    
    
    
    
    
    
    
    166,590,792Mid-cap equity funds
    
    
    109,062,756
    
    
    
    
    
    
    
    
    
    
    
    109,062,756Bond funds
    
    
    98,092,958
    
    
    
    
    
    
    
    
    
    
    
    98,092,958Small-cap equity funds
    
    
    62,260,578
    
    
    
    
    
    
    
    
    
    
    
    62,260,578REIT funds
    
    
    23,433,923
    
    
    
    
    
    
    
    
    
    
    
    23,433,923World equity funds
    
    
    7,271,508
    
    
    
    
    
    
    
    
    
    
    
    7,271,508Total
    
    
    1,182,742,447
    
    
    
    
    
    
    
    
    
    
    
    1,182,742,447Guaranteed investment contractsStable value funds
    
    
    
    
    
    
    133,076,794
    
    
    
    
    
    
    
    133,076,794Common collective trustsMoney market funds
    
    
    
    
    
    
    155,864,970
    
    
    
    
    
    
    
    155,864,970Bond funds
    
    
    
    
    
    
    78,137,334
    
    
    
    
    
    
    
    78,137,334Asset allocation funds
    
    
    
    
    
    
    88,834,800
    
    
    
    
    
    
    
    88,834,800International equity
funds
    
    
    
    
    
    
    37,142,241
    
    
    
    
    
    
    
    37,142,241Mid-cap equity funds
    
    
    
    
    
    
    35,890,540
    
    
    
    
    
    
    
    35,890,540Total
    
    
    
    
    
    
    395,869,885
    
    
    
    
    
    
    
    395,869,885Separate accountsCompany stock funds
    
    
    
    
    
    
    778,376,186
    
    
    
    
    
    
    
    778,376,186Bond funds
    
    
    
    
    
    
    191,456,441
    
    
    
    
    
    
    
    191,456,441Total
    
    
    
    
    
    
    969,832,627
    
    
    
    
    
    
    
    969,832,627Total assets at fair value
    
    $
    1,182,742,447
    
    
    $
    1,498,779,306
    
    
    $
    
    
    
    $
    2,681,521,753
 - 12 -




---



##### 



8
    
    Fair Value Measurements, ContinuedThe following table sets forth by level on a recurring basis, within the fair value hierarchy,
the Plans assets at fair value as of December 31, 2009. There are no assets which fall under
Level 3 of the hierarchy.
 Level 1
    
    
    Level 2
    
    
    Level 3Fair Value
    
    
    Fair Value
    
    
    Fair Value
    
    
    TotalsRegistered investment companiesLarge-cap equity funds
    
    $
    471,406,767
    
    
    $
    
    
    
    $
    
    
    
    $
    471,406,767Balanced funds
    
    
    169,850,256
    
    
    
    
    
    
    
    
    
    
    
    169,850,256International equity funds
    
    
    152,374,956
    
    
    
    
    
    
    
    
    
    
    
    152,374,956Mid-cap equity funds
    
    
    85,234,313
    
    
    
    
    
    
    
    
    
    
    
    85,234,313Bond funds
    
    
    75,639,467
    
    
    
    
    
    
    
    
    
    
    
    75,639,467Small-cap equity funds
    
    
    46,457,036
    
    
    
    
    
    
    
    
    
    
    
    46,457,036REIT funds
    
    
    13,876,296
    
    
    
    
    
    
    
    
    
    
    
    13,876,296World equity funds
    
    
    6,998,377
    
    
    
    
    
    
    
    
    
    
    
    6,998,377Total
    
    
    1,021,837,468
    
    
    
    
    
    
    
    
    
    
    
    1,021,837,468Guaranteed investment contractsStable value funds
    
    
    
    
    
    
    124,440,918
    
    
    
    
    
    
    
    124,440,918Common collective trustsMoney market funds
    
    
    
    
    
    
    148,509,864
    
    
    
    
    
    
    
    148,509,864Bond funds
    
    
    
    
    
    
    66,568,952
    
    
    
    
    
    
    
    66,568,952Asset allocation funds
    
    
    
    
    
    
    59,398,871
    
    
    
    
    
    
    
    59,398,871International equity funds
    
    
    
    
    
    
    36,354,478
    
    
    
    
    
    
    
    36,354,478Mid-cap equity funds
    
    
    
    
    
    
    28,041,614
    
    
    
    
    
    
    
    28,041,614Total
    
    
    
    
    
    
    338,873,779
    
    
    
    
    
    
    
    338,873,779Separate accountsCompany stock funds
    
    
    
    
    
    
    569,481,504
    
    
    
    
    
    
    
    569,481,504Bond funds
    
    
    
    
    
    
    157,473,274
    
    
    
    
    
    
    
    157,473,274Total
    
    
    
    
    
    
    726,954,778
    
    
    
    
    
    
    
    726,954,778Total assets at fair value
    
    $
    1,021,837,468
    
    
    $
    1,190,269,475
    
    
    $
    
    
    
    $
    2,212,106,943
 9
    
    Recent Accounting PronouncementsIn January 2010, the FASB issued an accounting standard update titled Fair Value Measurements
and Disclosures (Topic 820), Improving Disclosures about Fair Value Measurements. This new
guidance requires additional disclosures to be provided, including: 1) transfers in and out of
Levels 1 and 2 and the reasons for the transfers, 2) additional breakout of asset and liability
categories and 3) purchases, sales, issuances and settlements to be reported separately in the
Level 3 roll forward. This guidance was effective for periods beginning after December 15, 2009,
except for the item related to the Level 3 roll forward which is effective for periods beginning
after December 15, 2010 and interim periods within those years. This guidance was effective for
the Company for the year ended December 31, 2010. The adoption did not have a material impact on
the Plan.
 - 13 -




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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
    
    
    $
    2,548,444,959*
    
    Participant Loans
    
    4.0  10.5%; various maturity dates
    
    
    N/A
    
    
    $
    59,886,044*
    
    Eaton Stable Value Fund  see Footnote 1
    
    Guaranteed Investment Contract
    
    
    N/A
    
    
    
    128,434,791$
    2,736,765,794
 
 Footnote 1 - denotes contract value*
    
    Party-in-interest to the Plan.
 - 14 -




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##### 



Consent of Independent Registered Public Accounting Firm