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UNITED STATES SECURITIES AND EXCHANGE COMMISSION\n
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Washington, D.C. 20549\n
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FORM\n11-K\n
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\n\n\n \n \n \n\n\n \n \n \n\n
   
þ ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES\nEXCHANGE ACT OF 1934
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For the fiscal year ended December 31, 2006\n\n
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OR
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o TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES\nEXCHANGE ACT OF 1934
\n
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For the transition period from                      to                     \n\n
\n\n
Commission file number 1-14959 Brady Corporation
\n\n
A. Full title of the plan and the address of the plan, if different from that of the issuer named below:\n
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BRADY\nCORPORATION BRADY MATCHED 401(k) PLAN\n
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f/k/a BRADY CORPORATION BRADY GOLD PLAN\n\n
\n\n
B. Name of issuer of the securities held pursuant to the plan and the address of its principal executive office:\n
\n\n
BRADY CORPORATION
\n6555 WEST GOOD HOPE ROAD
\nPO BOX 571
\nMILWAUKEE WI 53202-0571
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Brady Corporation
\nBrady Matched 401(k) Plan
\nFinancial Statements as of and for the Years Ended December 31, 2006 and 2005, Supplemental\nSchedule as of December 31, 2006, and Report of Independent Registered Public Accounting Firm\n
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BRADY CORPORATION
\nBRADY MATCHED 401(k) PLAN
\nTABLE OF CONTENTS\n\n
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\n\n\n\n \n \n \n \n \n\n\n \n \n \n \n\n\n\n\n\n \n \n \n \n \n\n\n \n \n \n \n \n\n\n \n \n \n \n \n\n\n \n \n \n \n \n\n\n \n \n \n \n \n\n\n \n \n \n \n \n\n\n \n \n \n \n \n\n\n \n \n \n \n \n\n\n \n \n \n \n \n\n\n \n \n \n \n \n\n\n \n \n \n \n \n\n\n \n \n \n \n \n\n\n \n \n \n \n \n\n\n \n \n \n \n \n\n\n \n \n \n \n \n\n\n\n
     
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FINANCIAL STATEMENTS:
    
 
    
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  3 
 
    
  4 - 7 
 
    
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  9 
 
    
Consent of Deloitte Touche LLP
    
 Consent of Deloitte & Touche LLP
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NOTE: All other schedules required by Section 2520.103 – 10 of the\nDepartment of Labor’s Rules and Regulations for Reporting and\nDisclosure under the Employee Retirement Income Security Act of\n1974 have been omitted because they are not applicable.
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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
\nTo the Plan Administrator of the Brady Corporation
\nBrady Matched 401(k) Plan:\n\n
\n
We have audited the accompanying statements of net assets available for benefits of Brady\nCorporation Brady Matched 401(k) Plan (the “Plan”) as of December 31, 2006 and 2005, and the\nrelated statements of changes in net assets available for benefits for the years then ended. These\nfinancial statements are the responsibility of the Plan’s management. Our responsibility is to\nexpress an opinion on these financial statements based on our audits.\n
\n\n
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight\nBoard (United States). Those standards require that we plan and perform the audit to obtain\nreasonable assurance about whether the financial statements are free of material misstatement. The\nPlan is not required to have, nor were we engaged to perform, an audit of its internal control over\nfinancial reporting. Our audits included consideration of internal control over financial reporting\nas a basis for designing audit procedures that are appropriate in the circumstances, but not for\nthe purpose of expressing an opinion on the effectiveness of the Plan’s internal control over\nfinancial reporting. Accordingly, we express no such opinion. An audit also includes examining, on\na test basis, evidence supporting the amounts and disclosures in the financial statements,\nassessing the accounting principles used and significant estimates made by management, as well as\nevaluating the overall financial statement presentation. We believe that our audits provide a\nreasonable basis for our opinion.\n
\n\n
In our opinion, such financial statements present fairly, in all material respects, the net assets\navailable for benefits of the Plan as of December 31, 2006 and 2005, and the changes in net assets\navailable for benefits for the years then ended in conformity with accounting principles generally\naccepted in the United States of America.\n
\n\n
Our audits were conducted for the purpose of forming an opinion on the basic financial statements\ntaken as a whole. The supplemental schedule in the table of contents is presented for the purpose\nof additional analysis and is not a required part of the basic financial statements, but is\nsupplementary information required by the Department of Labor’s Rules and Regulations for Reporting\nand Disclosure under the Employee Retirement Income Security Act of 1974. This schedule is the\nresponsibility of the Plan’s management. Such schedule has been subjected to the auditing\nprocedures applied in our audit of the basic 2006 financial statements and, in our opinion, is\nfairly stated in all material respects when considered in relation to the basic 2006 financial\nstatements taken as a whole.\n
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/s/ DELOITTE & TOUCHE LLP\n
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Milwaukee, WI
\nJune 22, 2007\n\n
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BRADY CORPORATION
\nBRADY MATCHED 401(k) PLAN\n
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STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS
\nAS OF DECEMBER 31, 2006 AND 2005\n\n
\n
\n\n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n\n\n\n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n\n\n
         
  2006  2005 
ASSETS:
        
Cash
 $106  $6,283 
Mutual funds
  130,733,887   114,131,751 
Common collective trust fund
  18,475,932   17,584,449 
Brady Corporation common stock
  4,521,231   4,464,926 
Participant loans
  2,367,931   2,353,337 
 
      
 
        
Total investments — at fair value
  156,099,087   138,540,746 
 
      
 
        
Receivables:
        
Interest\nincome
  645,567   — 
Employer contributions
  660,310   557,364 
Participant contributions
  —   214,588 
 
      
 
        
Total receivables
  1,305,877   771,952 
 
      
 
        
Total assets
  157,404,964   139,312,698 
 
        
LIABILITIES — Excess contributions payable
  181,161   160,699 
 
      
 
        
NET ASSETS AVAILABLE FOR BENEFITS\nAT FAIR VALUE
  157,223,803   139,151,999 
 
        
Adjustments from fair value to contract value for fully\nbenefit-responsive investment contracts
  118,501   (29,881)
 
      
 
        
NET ASSETS AVAILABLE FOR BENEFITS
 $157,342,304  $139,122,118 
 
      
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See notes to financial statements.\n
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BRADY CORPORATION
\nBRADY MATCHED 401(k) PLAN\n
\n\n
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STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
\nFOR THE YEARS ENDED DECEMBER 31, 2006 AND 2005\n
\n\n
\n\n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n\n\n\n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n\n\n
         
  2006  2005 
Contributions:
        
Participant
 $7,460,555  $6,504,426 
Employer
  3,550,639   3,137,442 
 
      
 
        
Total contributions
  11,011,194   9,641,868 
 
      
 
        
Investment income:
        
Net appreciation in fair value of investments
  11,072,633   6,057,691 
Dividends
  4,127,551   2,464,394 
Interest
  484,852   183,041 
 
      
 
        
Net investment income
  15,685,036   8,705,126 
 
      
 
        
Plan transfers in
  790,627   — 
 
        
DEDUCTIONS:
        
Benefits paid to participants
  9,224,668   10,636,590 
Administrative expenses
  42,003   40,982 
 
      
 
        
Total deductions
  9,266,671   10,677,572 
 
      
 
        
INCREASE IN NET ASSETS
  18,220,186   7,669,422 
 
        
NET ASSETS AVAILABLE FOR BENEFITS:
        
Beginning of year
  139,122,118   131,452,696 
 
      
 
        
End of year
 $157,342,304  $139,122,118 
 
      
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See notes to financial statements.\n
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BRADY CORPORATION
\nBRADY MATCHED 401(k) PLAN\n
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NOTES TO FINANCIAL STATEMENTS
\nAS OF AND FOR THE YEARS ENDED DECEMBER 31, 2006 AND 2005\n\n
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1. DESCRIPTION OF PLAN\n
\n\n\n\n
The following description of the Brady Corporation Brady Matched 401(k) Plan (the “Plan”) is\nprovided for general information purposes only. Participants should refer to the Plan document\nfor more complete information.\n
\n\n\n
General — The Plan is a defined contribution plan, which provides retirement benefits to\nsubstantially all full-time employees of Brady Corporation (the “Company”). The Plan does not\nprovide benefits for employees covered by a collective bargaining agreement, leased employees,\nco-op students, on-call employees or interns. An employee may become a participant in the Plan on the first day of the month\ncoinciding or following the employee’s initial employment date. The Plan is subject to\nthe provisions of the Employee Retirement Income Security Act of\n1974, as amended (“ERISA”).\n
\n\n\n
Contributions — Each year, participants may contribute up to 25% of their annual base\ncompensation subject to the Internal Revenue Code (“IRC”) limitations. These voluntary contributions can be withdrawn in\nwhole or part in case of qualifying emergencies (as defined in the Plan), subject to certain\nrestrictions. The Company is required to contribute a 100% matching contribution of up to 4% of\nthe participants’ annual base compensation, subject to compensation limits of $220,000,\nadjusted for inflation. Participants self-direct all participant and Company contributions.\n
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Participant Accounts — Individual accounts are maintained for each Plan participant. Each\nparticipant’s account is credited with the participant’s contribution, the Company’s matching\ncontribution (net of participant forfeitures) and Plan earnings, and charged with withdrawals\nand an allocation of Plan losses and administrative expenses. The benefit to which a\nparticipant is entitled is the benefit that can be provided from the participant’s vested\naccount.\n
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Investments — Investment options include twelve equity funds, one common collective trust\nfund, one bond fund, two money market funds, and Brady Corporation\nClass A Nonvoting Common\nStock.\n
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Vesting — The Plan provides for full vesting of participants’ contributions from the date they\nare made. The Company’s contributions become vested on a straight line basis over a three-year\nperiod of continuous service. The participants’ share of the Company contribution becomes fully\nvested, in any event, upon normal retirement at age 65, termination due to permanent or total\ndisability or death.\n
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Participants may withdraw their vested interests upon retirement, approved hardship withdrawal,\ndeath, disability, or other termination of employment. Withdrawals are made at the\nparticipant’s option in the form of a lump sum, installments, annuity, or in-kind in shares of\nBrady Corporation Class A non-voting common stock.\n
\n\n\n
Participant Loans — Participants may borrow from their plan accounts a minimum of $1,000 and\nup to 50% of their account balance with a maximum of $50,000. The loans are secured by the\nbalance in the participant’s account and bear interest at the prime rate. As of December 31,\n2006, the interest rates on outstanding loans range from 4% to 9.5%.\n
\n\n\n
Payment of Benefits — On termination of service due to death, disability, or retirement, a\nparticipant may elect to receive either a lump-sum amount equal to the value of the\nparticipant’s vested interest in his or her account, or annual installments over a ten-year\nperiod. For termination of service for other reasons, a participant may receive the value of\nthe vested interest in his or her account as a lump-sum distribution.\n
\n\n\n
Forfeited Accounts — At December 31, 2006 and 2005, forfeited non-vested accounts totaled\n$59,903 and $51,966, respectively. These amounts were used to reduce employer contribution\nreceivables as of December 31, 2006 and 2005.\n
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2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES\n
\n\n\n\n
Basis of Accounting — The accompanying financial statements have been prepared in accordance\nwith accounting principles generally accepted in the United States of America.\n
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Adoption of New Accounting Guidance — The financial statements reflect the retroactive\nadoption of Financial Accounting Standards Board Staff Position, FSP AAG INV-1 and SOP 94-4-1,\nReporting of Fully Benefit-Responsive Contracts Held by Certain Investment Companies Subject to\nthe AICPA Investment Company Guide and Defined-Contribution Health and Welfare and Pension\nPlans (the “FSP”). As required by the FSP, the statements of net assets available for benefits\npresent investment contracts at fair value, as well as an additional line item showing an\nadjustment of fully benefit-responsive contracts from fair value to contract value. The\nstatements of changes in net assets available for benefits are presented on a contract value\nbasis and were not affected by the adoption of the FSP. The adoption of the FSP did not impact\nthe amount of net assets available for benefits at December 31, 2006 and 2005.\n
\n\n\n
Use of Estimates — The preparation of financial statements in conformity with accounting\nprinciples generally accepted in the United States of America requires Plan management to make\nestimates and assumptions that affect the reported amounts of net assets available for benefits\nand changes therein. Actual results could differ from those estimates.\n
\n\n\n
Risks and Uncertainties — The Plan utilizes various investment instruments, including mutual\nfunds, common stock and a common collective trust fund. Investment securities, in general, are\nexposed to various risks, such as interest rate, credit, and overall market volatility. Due to\nthe level of risk associated with certain investment securities, it is reasonably possible that\nchanges in the values of investment securities will occur in the near term and that such\nchanges could materially affect the amounts reported in the financial statements.\n
\n\n\n
Investment Valuation and Income Recognition — The Plan’s investments are stated at fair value.\nShares of mutual funds are valued at quoted\nmarket prices, which represent the net asset value of shares held by\nthe Plan at year end. Common stock is valued at quoted market prices. The\ncommon collective trust fund with underlying investments in investment contracts is valued at\nfair market value of the underlying investments and then adjusted by the issuer to contract\nvalue. Participant loans are valued at the outstanding loan balances.\n
\n\n\n
One of the investment options available in the Plan is the PNC Investment Contract Fund. The\nPNC Investment Contract Fund is a common collective trust that invests in fully benefit\nresponsive guaranteed investment contracts (GICs) and synthetic guaranteed investment contracts\n(SGICs). Participants may ordinarily direct the withdrawal or transfer of all of a portion of\ntheir investment at contract value. Contract value represents contributions made to the fund,\nplus earnings, less participant withdrawals.\n
\n\n\n
Purchases and sales of securities are recorded on a trade-date basis. Interest income is\nrecorded on the accrual basis. Dividends are recorded on the ex-dividend date.\n
\n\n\n
Management fees and operating expenses charged to the Plan for investments in the mutual funds\nare deducted from income earned on a daily basis and are not separately reflected.\nConsequently, management fees and operating expenses are reflected as a reduction of investment\nreturn for such investments.\n
\n\n\n
Administrative Expenses — Administrative expenses of the Plan are paid by the Plan as provided\nin the Plan document.\n
\n\n\n
Payment of Benefits — Benefit payments to participants are recorded upon distribution. There\nwere no amounts allocated to accounts of persons who have elected to withdraw from the Plan but\nhave not yet been paid as of December 31, 2006 and 2005.\n
\n\n\n
Excess Contributions Payable — The Plan is required to return contributions received during\nthe Plan year in excess of the IRC limits to the contributing participants. There were excess\ncontributions for the years ended December 31, 2006 and 2005 in the amount of $181,161 and\n$160,699, respectively.\n
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3. INVESTMENTS\n
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The value of investments held which exceeded 5% of the net assets available for benefits at\nDecember 31, 2006 and 2005, was as follows:\n
\n
\n\n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n\n\n\n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n
         
  2006  2005 
Fidelity Diversified International Fund
 $12,049,006  $9,220,472 
Blackrock Money Market Portfolio*
  7,685,323   7,667,745 
Fidelity Advisors Intermediate Bond Fund
  8,657,681   8,569,052 
Vanguard Institutional Index Fund
  16,532,302   15,141,541 
PNC Investment Contract Fund*
  18,475,932   17,584,449 
Fidelity Advisors Equity Growth Fund
  39,149,681   40,831,169 
MFS Emerging Markets Equity Fund
  8,529,192     
LSV Value Equity Fund
  10,188,848     
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* Party-in-interest
\n\n\n\n\n
During the years ended December 31, 2006 and 2005, the Plan’s investments (including gains and\nlosses on investments bought and sold, as well as held during the year) appreciated\n(depreciated) in value as follows:\n
\n
\n\n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n\n\n\n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n\n\n
         
  2006  2005 
Equity funds
 $10,070,134  $4,707,748 
Bond mutual fund
  22,637   (223,897)
Money market mutual fund
  —   197,872 
Common collective trust fund
  853,674   719,687 
Brady Corporation common stock
  126,188   656,281 
 
      
 
        
Net appreciation in fair value of investments
 $11,072,633  $6,057,691 
 
      
\n
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4. PLAN TERMINATION\n
\n\n\n\n
Although it has not expressed any intention to do so, the Company has the right under the\nPlan provisions to discontinue its contributions at any time and to terminate the Plan subject\nto the provisions set forth in ERISA. In the event that the Plan is terminated, participants\nwould become 100 percent vested in unvested employer matching contributions in their accounts.\n
\n\n
5. FEDERAL INCOME TAX STATUS\n
\n\n\n\n
The Plan uses a prototype plan document sponsored by PNC Bank (“PNC” or “the Trustee”). PNC\nreceived an opinion letter from the Internal Revenue Service\n(“IRS”), dated November 19, 2001,\nwhich states that the prototype document satisfies the applicable provisions of the IRC. The\nPlan itself has not received a determination letter from the IRS. However, the Plan’s\nmanagement believes that the Plan is currently designed and being operated in compliance with\nthe applicable requirements of the IRC. Therefore, no provision for income tax has been\nincluded in the Plan’s financial statements.\n
\n\n
6.\nEXEMPT PARTY-IN-INTEREST TRANSACTIONS\n
\n\n\n\n
The Plan invests in Company common stock. In addition, certain plan investments represent\n shares of mutual funds and collective trust funds managed by the Trustee. These transactions\nare considered party-in-interest transactions. These transactions are not, however, considered\nprohibited transactions under ERISA regulations. Fees paid by the Plan for investment\nmanagement services were included as a reduction of the return earned on each fund. At\nDecember 31, 2006 and 2005, the Plan held 121,278 and 123,409 shares, respectively of common\nstock of Brady Corporation, with a cost basis of $2,768,438 and $2,480,917, respectively.\nDuring the years ended December 31, 2006 and 2005, the Plan recorded dividend income of $65,699\nand $56,958, respectively.\n
\n\n
7. PLAN TRANSFERS\n
\n\n\n\n
Effective January 1, 2006, the Plan received plan-to-plan transfers from two of the Company’s\nsubsidiaries, TruMed Technologies, Inc. and TISCOR, Inc. The plans, previously named the TruMed\nTechnologies Inc. 401(k) Profit Sharing Plan and Trust and the TISCOR, Inc. 401(k) Savings\nPlan, transferred assets of $256,924 and $533,703, respectively, during January 2006.\n
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8. RECONCILIATION TO FORM 5500\n
\n\n\n\n
For 2006, net assets available for benefits in the accompanying financial statements are\nreported at contract value; however, they are recorded at fair value in the Plan’s Form 5500.\nThe following table reconciles net assets available for benefits per\nthe financial statements\nto the Plan’s Form 5500 to be filed by the Company:\n
\n
\n\n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n\n\n\n\n\n \n \n \n \n\n\n \n \n \n\n\n \n \n \n \n\n\n \n \n \n\n\n \n \n \n \n\n\n \n \n \n\n\n
         
  2006
Net assets available for benefits per financial statements
 $157,342,304
Adjustments:
  
Contract value to fair value for fully\nbenefit-responsive investment contracts
 $(118,501
 
  
Amounts reported per Form 5500
 $157,223,803
 
  
\n
\n\n\n\n
The following table reconciles the increase in net assets available for benefits per the\nfinancial statements to the Form 5500 to be filed by the Company for 2006:\n
\n
\n\n\n\n \n \n \n \n \n\n\n\n \n \n \n \n\n\n\n\n\n \n \n \n \n \n\n\n \n \n \n \n \n\n\n \n \n \n \n \n\n\n \n \n \n \n\n\n \n \n \n \n \n\n\n \n \n \n \n\n\n
     
  2006 
Amounts reported per financial statements
 $18,220,186 
Adjustments:
    
Changes in adjustment from contract value to\nfair value for fully benefit-responsive\ninvestment contracts
 $(118,501)
 
   
Amounts reported per Form 5500
 $18,101,685 
 
   
\n
\n\n\n
9. SUBSEQUENT EVENT\n
\n\n\n\n
Effective April 1, 2007, the Plan was amended to allow participants to irrevocably designate\nall or any part of their elective deferrals to the Plan as Roth 401(k) deferrals, provided the\neligibility requirements have been met. The Roth 401(k) deferrals are contributed to the Plan\nafter-tax and treated as includible in the computation of the participant’s personal income. As\nthe amounts are contributed after-tax, the deferrals and, in most cases, earnings on the\ndeferrals will not be subject to Federal income taxes when distributed to the participants, as\nlong as the distributions are considered to be qualified. The combined total of pre-tax\ndeferrals and Roth 401(k) deferrals may not exceed the maximum dollar limitation allowable\nunder the law. The Roth 401(k) deferrals will be subject to Company matching contributions\nutilizing the same formula as the pre-tax deferrals.\n
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SUPPLEMENTAL SCHEDULE
\nFURNISHED PURSUANT TO THE\n
\n\n
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DEPARTMENT OF LABOR’S RULES AND REGULATIONS\n
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BRADY CORPORATION
\nBRADY MATCHED 401(k) PLAN\n
\n\n
\n\n
\n\n
FORM 5500, SCHEDULE H, PART IV, LINE 4i —
\nSCHEDULE OF ASSETS (HELD AT END OF YEAR)
\nAS OF DECEMBER 31, 2006\n\n
\n
\n\n\n\n \n \n \n \n \n\n\n \n \n \n \n\n\n \n \n \n \n\n\n\n\n\n \n \n \n \n \n\n\n \n \n \n \n \n\n\n \n \n \n \n \n\n\n \n \n \n \n \n\n\n \n \n \n \n \n\n\n \n \n \n \n \n\n\n \n \n \n \n \n\n\n \n \n \n \n \n\n\n \n \n \n \n \n\n\n \n \n \n \n \n\n\n \n \n \n \n \n\n\n \n \n \n \n \n\n\n \n \n \n \n \n\n\n \n \n \n \n\n\n \n \n \n \n \n\n\n \n \n \n \n \n\n\n \n \n \n \n\n\n \n \n \n \n \n\n\n \n \n \n \n \n\n\n \n \n \n \n \n\n\n \n \n \n \n\n\n \n \n \n \n \n\n\n \n \n \n \n \n\n\n \n \n \n \n \n\n\n \n \n \n \n\n\n \n \n \n \n \n\n\n \n \n \n \n \n\n\n \n \n \n \n \n\n\n \n \n \n \n \n\n\n \n \n \n \n\n\n \n \n \n \n \n\n\n \n \n \n \n \n\n\n \n \n \n \n\n\n \n \n \n \n \n\n\n \n \n \n \n \n\n\n \n \n \n \n \n\n\n \n \n \n \n\n\n \n \n \n \n \n\n\n \n \n \n \n \n\n\n \n \n \n \n\n\n \n \n \n \n \n\n\n \n \n \n \n \n\n\n \n \n \n \n\n\n \n \n \n \n \n\n\n \n \n \n \n \n\n\n \n \n \n \n\n\n
     
  Fair 
Description Value 
EQUITY FUNDS:
    
MFS Emerging Markets Equity Fund
 $8,529,192 
Fidelity Advisors Equity Growth Fund
  39,149,681 
Fidelity Diversified International Fund
  12,049,006 
PIMCO Commodity Real Return
  1,267,028 
PNC Small Cap Growth Equity Portfolio*
  6,441,677 
American Century Small Cap Value Fund
  6,385,952 
LSV Value Equity Fund
  10,188,848 
T. Rowe Price Retirement 2010
  3,353,372 
T. Rowe Price Retirement 2020
  5,827,787 
T. Rowe Price Retirement 2030
  3,006,585 
T. Rowe Price Retirement 2040
  1,658,397 
Vanguard Institutional Index Fund
  16,532,302 
 
   
 
    
 
  114,389,827 
 
   
 
    
COMMON COLLECTIVE TRUST FUND —
    
PNC Investment Contract Fund*
  18,475,932 
 
   
 
    
BOND FUND —
    
Fidelity Advisors Intermediate Bond Fund
  8,657,681 
 
   
 
    
MONEY MARKET FUNDS:
    
Blackrock Money Market Portfolio*
  7,685,323 
Brady Stock Liquidity Fund*
  1,056 
 
   
 
    
 
  7,686,379 
 
   
 
    
COMMON STOCK —
    
Brady Corporation Class A Non-voting*
  4,521,231 
 
   
 
    
CASH
  106 
 
   
 
    
PARTICIPANT LOANS — (Maturing through 2036 at interest rates of 4%-9.5%)*
  2,367,931 
 
   
 
    
TOTAL ASSETS (HELD AT END OF YEAR)
 $156,099,087 
 
   
\n
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* Party-in-interest.
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EXHIBIT INDEX\n
\n\n
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Exhibit No. Description
23\n
 Consent of Deloitte & Touche LLP
\n
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SIGNATURES\n
\n\n\n
     The Plan. Pursuant to the requirements of the Securities Exchange Act of 1934, the trustees\n(or other persons who administer the employee benefit plan) have duly caused this annual report to\nbe signed on its behalf by the undersigned hereunto duly authorized.\n
\n\n\n\n \n \n \n \n \n\n\n \n \n \n\n \n \n \n\n \n \n \n\n \n \n \n\n\n
     
 BRADY CORPORATION
\nBRADY MATCHED 401(k) PLAN
\n 		 
Date: June 29, 2007 /s/ GARY VOSE\n  
 Gary Vose  
 Plan Administrative Committee Member  
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\n\n
EXHIBIT\n23\n
\n\n
CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM\n
\n\n
We consent to the incorporation by reference in Registration Statement No. 333-44505 on Form S-8 of\nour report dated June 22, 2007, appearing in this Annual Report on Form 11-K of Brady Corporation\nBrady Matched 401(k) Plan for the years ended December 31, 2006.\n
\n\n\n
/s/ DELOITTE & TOUCHE LLP\n
\n\n\n
Milwaukee, Wisconsin
\nJune 28, 2007\n\n
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