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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 11-K\n
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þ ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE\nACT OF 1934
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For the fiscal year ended December 31, 2008\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
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For the transition period from                      to                     \n\n
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Commission file number 1-14959 Brady Corporation
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A. Full title of the plan and the address of the plan, if different from that of the issuer named\nbelow:
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BRADY MATCHED 401(k) PLAN\n
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B. Name of issuer of the securities held pursuant to the plan and the address of its principal\nexecutive office:
\n
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BRADY CORPORATION
\n6555 WEST GOOD HOPE ROAD
\nPO BOX 571
\nMILWAUKEE WI 53202-0571
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Table of Contents

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Brady Matched 401(k) Plan\n
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Financial Statements as of and for the Years Ended December 31, 2008 and 2007, Supplemental\nSchedule as of December 31, 2008, and Reports of Independent Registered Public Accounting Firm\n
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BRADY MATCHED 401(k) PLAN
\nTABLE OF CONTENTS
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  PAGE 
  1 
 
    
FINANCIAL STATEMENTS
    
 
    
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  13 
 
    
  14 
 
    
 EX-23.1
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Consent of Clifton Gunderson LLP\n
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NOTE:\n
 All other schedules required by Section 2520.103—10 of\nthe Department of Labor’s Rules and Regulations for\nReporting and Disclosure under the Employee Retirement\nIncome Security Act of 1974 have been omitted because\nthey are not applicable.
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Report of Independent Registered Public Accounting Firm
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Retirement Committee
\nBrady Matched 401(k) Plan
\nMilwaukee, Wisconsin
\n\n
We have audited the accompanying statements of net assets available for benefits of Brady Matched\n401(k) Plan as of December 31, 2008 and 2007, and the related statements of changes in net assets\navailable for benefits for the years then ended. These financial statements are the responsibility\nof the Plan’s management. Our responsibility is to express an opinion on these financial statements\nbased 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. An\naudit also includes assessing the accounting principles used and significant estimates made by\nmanagement, as well as evaluating the overall financial statement presentation. We believe that\nour audits provide a reasonable basis for our opinion.\n
\n\n
In our opinion, the financial statements referred to above present fairly, in all material\nrespects, the net assets available for benefits of Brady Matched 401(k) Plan as of December 31,\n2008 and 2007, and the changes in net assets available for benefits for the years then ended in\nconformity with United States generally accepted accounting principles.\n
\n\n
Our audits were performed for the purpose of forming an opinion on the basic financial statements\ntaken as a whole. The accompanying supplemental schedule is presented for purposes of additional\nanalysis and is not a required part of the basic financial statements but is supplementary\ninformation required by the Department of Labor’s Rules and Regulations for Reporting and\nDisclosure under the Employee Retirement Income Security Act of 1974. This supplemental schedule is\nthe responsibility of the Plan’s management. The supplemental schedule has been subjected to the\nauditing procedures applied in the audits of the basic financial statements and, in our opinion,\nis presented fairly, in all material respects in relation to the basic financial statements taken\nas a whole.
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/s/ Clifton Gunderson LLP
\nMilwaukee, Wisconsin
\nJune 24, 2009
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Table of Contents

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BRADY MATCHED 401(K) PLAN
\n
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STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS
\nDecember 31, 2008 and 2007
\n\n
ASSETS
\n\n
\n\n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n\n\n\n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n\n\n
         
  2008  2007 
ASSETS
        
Investments — at fair value
 $118,493,171  $174,698,244 
 
      
 
Cash
  2,259   4,576 
 
      
 
        
Receivables
        
Company contributions
  658,881   715,096 
Interest income
  —   1,252,100 
 
      
 
        
Total receivables
  658,881   1,967,196 
 
      
 
        
Total assets
  119,154,311   176,670,016 
 
      
 
        
LIABILITIES — excess contributions payable
  (5,252)  — 
 
      
 
        
NET ASSETS AVAILABLE FOR BENEFITS\nAT FAIR VALUE
  119,149,059   176,670,016 
 
        
Adjustments from fair value to contract value for fully\nbenefit-responsive investment contracts
  800,143   (227,453)
 
      
 
NET ASSETS AVAILABLE FOR BENEFITS
 $119,949,202  $176,442,563 
 
      
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The accompanying notes are an integral part of the financial statements.
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BRADY MATCHED 401(K) PLAN
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STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
\nYears Ended December 31, 2008 and 2007\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 \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n\n\n
         
  2008  2007 
ADDITIONS TO (DEDUCTIONS FROM) NET\nASSETS ATTRIBUTED TO:
        
Contributions
        
Participant
 $8,299,025  $8,337,430 
Employer
  3,727,254   3,655,188 
 
      
 
        
Total contributions
  12,026,279   11,992,618 
 
      
Investment income (loss)
        
Net appreciation (depreciation) in fair value\nof investments
  (56,323,037)  11,541,692 
Dividends
  2,742,741   5,720,609 
Interest
  341,224   1,842,329 
 
      
 
        
Net investment income (loss)
  (53,239,072)  19,104,630 
 
      
 
        
Benefits paid to participants
  (15,234,383)  (11,943,112)
Administrative expenses
  (46,185)  (53,877)
 
      
 
        
NET INCREASE (DECREASE)
  (56,493,361)  19,100,259 
 
      
 
        
NET ASSETS AVAILABLE FOR BENEFITS,\nBEGINNING OF YEAR
  176,442,563   157,342,304 
 
      
 
        
NET ASSETS AVAILABLE FOR BENEFITS,\nEND OF YEAR
 $119,949,202  $176,442,563 
 
      
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The accompanying notes are an integral part of the financial statements.\n
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Table of Contents

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BRADY MATCHED 401(k) PLAN
\n
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NOTES TO FINANCIAL STATEMENTS
\nAS OF AND FOR THE YEARS ENDED DECEMBER 31, 2008 AND 2007\n\n
\n\n
NOTE 1 — DESCRIPTION OF THE PLAN\n
\n\n
The following description of the Brady Matched 401(k) Plan (the Plan) is provided for general\ninformation purposes only. Participants should refer to the Plan document for more complete\ninformation.\n
\n\n\n
General\n
\n\n
The Plan is a defined contribution plan, which provides retirement benefits to substantially all\nfull-time employees of Brady Corporation (the Company). The Plan does not provide benefits for\nemployees covered by a collective bargaining agreement, leased employees, co-op students, on-call\nemployees or interns. An employee may become a participant in the Plan on the employee’s initial\ndate of employment. The Plan is subject to the provisions of the Employee Retirement Income\nSecurity Act of 1974, as amended (ERISA).\n
\n\n\n
Contributions\n
\n\n
Each year, participants may contribute up to 25% of their annual base compensation subject to the\nInternal Revenue Code (IRC) limitations. These voluntary contributions can be withdrawn in whole or\npart in case of qualifying emergencies (as defined in the Plan), subject to certain restrictions.\nPrior to January 1, 2008, the Company was required to contribute a 100% matching contribution up to\n4% of a participant’s annual base compensation, subject to compensation limits of $225,000,\nadjusted for inflation. Effective January 1, 2008, the Company is required to contribute a 100%\nmatching contribution of the first 3% and 50% of the next 2% that a participant contributes,\nsubject to compensation limits of $230,000, adjusted for inflation. Participants self-direct all\nparticipant and Company contributions.\n
\n\n\n
Participant Accounts\n
\n\n
Individual accounts are maintained for each Plan participant. Each participant’s account is\ncredited with the participant’s contribution, the Company’s matching contribution (net of\nparticipant forfeitures) and Plan earnings, and charged with withdrawals and an allocation of Plan\nlosses and administrative expenses. The benefit to which a participant is entitled is the benefit\nthat can be provided from the participant’s vested account.
\n\n
Effective January 1, 2008, for any new participant or existing employee who is not participating,\nthe Plan will automatically withhold 3% of the employee’s pay, on a pre-tax basis. The withheld\nfunds will be deposited into an account under the employee’s name in the Plan, unless a waiver form\nwas completed by the employee prior to December 14, 2007, or before receiving compensation for the\nfirst time subsequent to becoming eligible to participate.
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BRADY MATCHED 401(k) PLAN
\nNOTES TO FINANCIAL STATEMENTS
\nAS OF AND FOR THE YEARS ENDED DECEMBER 31, 2008 AND 2007\n\n
\n\n
NOTE 1 — DESCRIPTION OF THE PLAN (continued)\n
\n\n\n
Investments\n\n
\n
Investment options include thirteen equity funds, one common collective trust fund, one bond fund,\ntwo money market funds, and Brady Corporation Class A Non-Voting Common Stock.\n
\n\n\n
Vesting\n
\n\n
The Plan provides for full vesting of participants’ contributions from the date they are made.\nCompany contributions will become vested after a two-year period of continuous service for all\ncontributions made after January 1, 2008. Contributions made prior to January 1, 2008, will\ncontinue to become vested on a straight line basis over a three-year period of continuous service.\nThe participants’ share of the Company contribution becomes fully vested, in any event, upon normal\nretirement at age 65, termination due to permanent or total disability or death.\n
\n\n
Participants may withdraw their vested interests upon retirement, approved hardship withdrawal,\ndeath, disability, or other termination of employment. Withdrawals are made at the participant’s\noption in the form of a lump sum, installments, or in-kind in shares of Brady Corporation Class A\nNon-Voting Common Stock.\n
\n\n\n
Participant Loans\n
\n\n
Participants may borrow from their plan accounts a minimum of $1,000 and up to 50% of their account\nbalance with a maximum of $50,000. The loans are secured by the balance in the participant’s\naccount and bear interest at the prime rate. As of December 31, 2008, the interest rates on\noutstanding loans range from 3.25% to 10.25%.\n
\n\n\n
Payment of Benefits\n
\n\n
On termination of service due to death, disability, or retirement, a participant may elect to\nreceive either a lump-sum amount equal to the value of the participant’s vested interest in his or\nher account, or installments over a specified period. For termination of service for other reasons,\na participant may receive the value of the vested interest in his or her account as a lump-sum\ndistribution.\n
\n\n\n
Forfeited Accounts\n
\n\n
At December 31, 2008 and 2007, forfeited non-vested accounts totaled $103,340 and $89,070,\nrespectively. These amounts were used to reduce employer contribution receivables as of December\n31, 2008 and 2007.\n
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BRADY MATCHED 401(k) PLAN
\nNOTES TO FINANCIAL STATEMENTS
\nAS OF AND FOR THE YEARS ENDED DECEMBER 31, 2008 AND 2007\n\n
\n\n
NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES\n
\n\n\n
Basis of Accounting\n\n
\n
The accompanying financial statements have been prepared in accordance with accounting principles\ngenerally accepted in the United States of America.\n
\n\n
Investment contracts held by a defined-contribution plan are required to be reported at fair value.\nHowever, contract value is the relevant measurement attribute for that portion of the net assets\navailable for benefits for a defined contribution plan attributable for fully benefit-responsive\ninvestment contracts because contact value is the amount participants would receive if they were to\ninitiate permitted transactions under the terms of the plans. The Statement of Net Assets\nAvailable for Benefits presents the fair value of the investment contacts as well as the adjustment\nof the fully benefit-responsive investment contacts from fair value to contact value. The\nStatement of Changes in Net Assets Available for Benefits is prepared on a contact value basis.\n
\n\n\n
Adoption of New Accounting Guidance\n
\n\n
The Plan adopted FASB Statement No. 157 (SFAS No. 157), “Fair Value Measurements”, on January 1,\n2008, as it relates to financial assets and liabilities. SFAS No. 157 applies to other accounting\npronouncements that require or permit fair value measurements, defines fair value based upon an\nexit price model, establishes a framework for measuring fair value, and expands the applicable\ndisclosure requirements. Refer to Note 4 below.\n
\n\n\n
Use of Estimates\n
\n\n
The preparation of financial statements in conformity with accounting principles generally accepted\nin the United States of America requires Plan management to make estimates and assumptions that\naffect the reported amounts of net assets available for benefits and changes therein. Actual\nresults could differ from those estimates.\n
\n\n\n
Risks and Uncertainties\n
\n\n
The Plan utilizes various investment instruments, including mutual funds, common stock and a common\ncollective trust fund. Investment securities, in general, are exposed to various risks, such as\ninterest rate, credit, and overall market volatility. Due to the level of risk associated with\ncertain investment securities, it is reasonably possible that changes in the values of investment\nsecurities will occur in the near term and that such changes could materially affect the amounts\nreported in the financial statements.\n
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BRADY MATCHED 401(k) PLAN
\nNOTES TO FINANCIAL STATEMENTS
\nAS OF AND FOR THE YEARS ENDED DECEMBER 31, 2008 AND 2007\n\n
\n\n
NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)\n
\n\n\n
Investment Valuation and Income Recognition\n\n
\n
Investments are reported at fair value. Fair value is the price that would be received to sell an\nasset or paid to transfer a liability in an orderly transaction between market participants at the\nmeasurement date. Refer to Note 4 below.\n
\n\n
Purchases and sales of securities are recorded on a trade-date basis. Interest income is recorded\non the accrual basis. Dividends are recorded on the ex-dividend date. Net appreciation includes\nthe Plan’s gains and losses on investments bought and sold as well as held during the year.\n
\n\n
Management fees and operating expenses charged to the Plan for investments in the mutual funds are\ndeducted from income earned on a daily basis and are not separately reflected. Consequently,\nmanagement fees and operating expenses are reflected as a reduction of investment return for such\ninvestments.\n
\n\n\n
Administrative Expenses\n
\n\n
Administrative expenses of the Plan are paid by the Plan as provided in the Plan document.\n
\n\n\n
Payment of Benefits\n
\n\n
Benefit payments to participants are recorded upon distribution. There were no amounts allocated to\naccounts of persons who have elected to withdraw from the Plan, but have not yet been paid as of\nDecember 31, 2008 and 2007.\n
\n\n\n
Excess Contributions Payable\n
\n\n
The Plan is required to return contributions received during the Plan year in excess of the IRC\nlimits to the contributing participants. There were excess contributions for the year ended\nDecember 31, 2008, in the amount of $5,252, and there were no excess contributions for the year\nended December 31, 2007.\n
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BRADY MATCHED 401(k) PLAN
\nNOTES TO FINANCIAL STATEMENTS
\nAS OF AND FOR THE YEARS ENDED DECEMBER 31, 2008 AND 2007
\n\n
NOTE 3 — INVESTMENTS
\n\n
The value of individual investments held which exceeded 5% of the net assets available for benefits\nat December 31, 2008 and 2007, 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 \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n
         
  2008 2007
Fidelity Advisors Equity Growth Fund
 $21,803,220  $44,410,899 
PNC Investment Contract Fund*
  **20,931,871   **19,536,534 
Vanguard Admiral Treasury
  11,982,850   — 
Fidelity Advisors Intermediate Bond Fund
  —   9,592,730 
Vanguard Institutional Index Fund
  9,746,536   17,051,532 
Vanguard Total Bond Index Inst
  9,496,041   — 
Fidelity Diversified International Fund
  7,434,435   13,936,242 
LSV Value Equity Fund
  ***   9,662,284 
MFS Emerging Markets Equity Fund
  ***   11,235,879 
Blackrock Money Market Portfolio*
  —   9,220,174 
\n
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* Party-in-interest
 
** This represents contract value which differs from fair value as noted in the supplemental\nschedule.
 
*** Less than 5% of the Plan’s net assets.
\n\n
During the years ended December 31, 2008 and 2007, the Plan’s investments (including gains and\nlosses on investments bought and sold, as well as held during the year) appreciated (depreciated)\nin 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
         
  2008  2007 
Equity funds
 $(56,340,558) $10,933,221 
Bond fund
  218,740   (90,505)
Common collective trust fund
  936,525   908,982 
Brady Corporation common stock
  (1,137,744)  (210,006)
 
      
 
Net appreciation (depreciation) in fair value of investments
 $(56,323,037) $11,541,692 
 
      
\n
\n\n
NOTE 4 — FAIR VALUE MEASUREMENT
\n\n
The Plan adopted SFAS No. 157, on January 1, 2008, as it relates to financial assets and\nliabilities. SFAS No. 157 applies to other accounting pronouncements that require or permit fair\nvalue measurements, defines fair value based upon an exit price model, establishes a framework for\nmeasuring fair value, and expands the applicable disclosure requirements. SFAS No. 157 indicates,\namong other things, that a fair value measurement assumes that a transaction to sell an asset or\ntransfer a liability occurs in the principal market for the asset or liability or, in the absence\nof a principal market, the most advantageous market for the asset or liability.
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BRADY MATCHED 401(k) PLAN
\nNOTES TO FINANCIAL STATEMENTS
\nAS OF AND FOR THE YEARS ENDED DECEMBER 31, 2008 AND 2007\n\n
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NOTE 4 — FAIR VALUE MEASUREMENT (continued)\n
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SFAS No. 157 establishes a fair market value hierarchy for the pricing inputs used to measure fair\nmarket value. The Plan’s net assets measured at fair market value are classified in one of the\nfollowing categories:\n
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Level 1\n
 Assets for which fair value is based on quoted market prices in\nactive markets for identical instruments as of the reporting date.
 
  
Level 2\n
 Assets for which fair value is based on valuation models for which\npricing inputs were either directly or indirectly observable
 
  
Level 3\n
 Assets for which fair value is based on valuation models with\nsignificant unobservable pricing inputs and which result in the\nuse of management estimates.
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The asset’s or liability’s fair value measurement level within the fair value hierarchy is based on\nthe lowest level of any inputs that is significant to the fair value measurement. Valuation\ntechniques used need to maximize the use of observable inputs and minimize the use of unobservable\ninputs.\n
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The following is a description of the valuation methodologies used for assets measured at fair\nvalue. There have been no changes in the methodologies used at December 31, 2008.\n
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Shares of equity funds and bond funds are valued at quoted market prices, which represent the net\nasset value of shares held by the Plan at year end. Common stock is valued at quoted market\nprices. Such securities are classified within Level 1 of the valuation hierarchy.\n
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The common collective trust fund is valued at fair market value of the underlying investments and\nthen adjusted by the issuer to contract value. The money market funds are valued at a stable $1.00\nnet asset value. Such securities are classified within Level 2 of the valuation hierarchy.\n
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Participant loans are valued at the amortized cost, which represents fair value. Such securities\nare classified within Level 3 of the valuation hierarchy.\n
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The methods described above may produce a fair value calculation that may not be indicative of net\nrealizable value or reflective of future fair values. Furthermore while the Plan believes its\nvaluation methods are appropriate and consistent with other market participants, the use of\ndifferent methodologies or assumptions to determine the fair value of certain financial instruments\ncould result in different fair value measurement at the reporting date.\n
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BRADY MATCHED 401(k) PLAN
\nNOTES TO FINANCIAL STATEMENTS
\nAS OF AND FOR THE YEARS ENDED DECEMBER 31, 2008 AND 2007
\n\n
NOTE 4 — FAIR VALUE MEASUREMENT (continued)
\n\n
The following table sets forth by level, within the fair value hierarchy, the Plan’s assets at fair\nvalue as December 31, 2008.
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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 \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n\n\n
                 
  Level 1 Level 2 Level 3 Total
Equity funds
 $71,524,084  $—  $—  $71,524,084 
Bond fund
  9,496,041   —   —   9,496,041 
Money market funds
  —   11,983,892   —   11,983,892 
Brady common stock
  2,992,404   —   —   2,992,404 
Common collective\ntrust fund
  —   20,131,728   —   20,131,728 
Participant loans
  —   —   2,365,022   2,365,022 
   
 
 $84,012,529  $32,115,620  $2,365,022  $118,493,171 
   
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The following table sets forth a summary of changes in fair value of the Plan’s level 3 assets for\nthe year ended December 31, 2008.
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  Participant Loans 
Balance, beginning of year
 $2,464,347 
Purchases, sales, issuance, and settlements (net)
  (99,325)
 
   
Balance, end of year
 $2,365,022 
 
   
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NOTE 5 — PLAN TERMINATION
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Although it has not expressed any intention to do so, the Company has the right under the Plan\nprovisions to discontinue its contributions at any time and to terminate the Plan subject to the\nprovisions set forth in ERISA. In the event that the Plan is terminated, participants would become\n100 percent vested in unvested employer matching contributions in their accounts.
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BRADY MATCHED 401(k) PLAN
\nNOTES TO FINANCIAL STATEMENTS
\nAS OF AND FOR THE YEARS ENDED DECEMBER 31, 2008 AND 2007\n\n
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NOTE 6 — FEDERAL INCOME TAX STATUS\n
\n\n
The Plan uses a prototype plan document sponsored by PNC Bank (PNC or the Trustee). PNC received an\nopinion letter from the Internal Revenue Service (IRS), dated November 19, 2001, which states that\nthe prototype document satisfies the applicable provisions of the IRC. The Plan itself has not\nreceived a determination letter from the IRS. However, the Plan’s management believes that the Plan\nis currently designed and being operated in compliance with the applicable requirements of the IRC.\nTherefore, no provision for income tax has been included in the Plan’s financial statements.\n
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NOTE 7 — EXEMPT PARTY-IN-INTEREST TRANSACTIONS\n
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The Plan invests in Company common stock. In addition, certain plan investments represent shares of\nmutual funds and common collective trust funds managed by the Trustee. Fees paid by the Plan for\ninvestment management services were included as a reduction of the return earned on each fund.\nThese transactions are considered party-in-interest transactions. These transactions are not,\nhowever, considered prohibited transactions under ERISA regulations.\n
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At December 31, 2008 and 2007, the Plan held 124,944 and 113,899 shares, respectively of common\nstock of Brady Corporation, with a cost basis of $3,127,795 and $2,869,435, respectively. During\nthe years ended December 31, 2008 and 2007, the Plan recorded dividend income from the common stock\nof Brady Corporation of $69,176 and $70,972 respectively.\n
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NOTE 8 — RECONCILIATION TO FORM 5500\n
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Net assets available for benefits in the accompanying financial statements are reported at contract\nvalue; however, they are recorded at fair value in the Plan’s Form 5500.\n
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The following table reconciles net assets available for benefits per the financial statements to\nthe Plan’s Form 5500 as of December 31:\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
         
  2008  2007 
Net assets available for benefits per financial statements
 $119,949,202  $176,442,563 
 
        
Adjustment from contract value to fair value for fully\nbenefit-responsive investment contracts
  (800,143)  227,453 
 
      
 
        
Amounts reported per Form 5500
 $119,149,059  $176,670,016 
 
      
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BRADY MATCHED 401(k) PLAN
\nNOTES TO FINANCIAL STATEMENTS
\nAS OF AND FOR THE YEARS ENDED DECEMBER 31, 2008 AND 2007\n\n
\n\n
NOTE 8 — RECONCILIATION TO FORM 5500 (continued)\n
\n\n
The following table reconciles the increase (decrease) in net assets available for benefits per the\nfinancial statements to the Form 5500 for the year ended December 31:\n
\n\n
\n\n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n\n\n\n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n\n\n
         
  2008  2007 
Amounts reported per financial statements
 $(56,493,361) $19,100,259 
 
        
Adjustment from contract value to fair value for fully\nbenefit-responsive investment contracts at end of\nyear
  (800,143)  227,453 
 
        
Adjustment from contract value to fair value for fully\nbenefit-responsive investment contracts at beginning\nof year
  (227,453)  118,501 
 
        
Transfer of\nassets from Plan
  11,702   — 
 
      
 
        
Amounts reported per Form 5500
 $(57,509,255) $19,446,213 
 
      
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NOTE 9 — SUBSEQUENT EVENT\n
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Effective January 1, 2009, the Plan was amended to cover the employees of the Tricor Direct, Inc.’s\nDAWG division.\n
\n\n
Effective January 1, 2009, the Sorbent Products Co., Inc. Profit Sharing Plan; the Electromark Co.\nPermar Systems Inc. 401 (k) Profit Sharing & Trust; the AIO Acquisitions Inc. 401 (k) Plan; the IDR\n& CIPI Savings Plan; and the Tricor/EMED Co. Inc. 401 (k) Plan (formerly known as EMED Co. Inc. 401\n(k) Plan) merged into the Brady Matched 401 (k) Plan.\n
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Effective January 1, 2009, an eligible employee may contribute up to a maximum of 50% of his/her\nsalary.\n
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This information is an integral part of the accompanying financial statements.\n
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SUPPLEMENTAL SCHEDULE
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BRADY MATCHED 401(K) PLAN
 EIN #: 39-0178960
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FORM 5500, SCHEDULE H, LINE 4i
 Plan #: 003
SCHEDULE OF ASSETS (HELD AT END OF YEAR)
  
AS OF DECEMBER 31, 2008
  
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  Fair 
Description
 Value 
EQUITY FUNDS
    
MFS Emerging Markets Equity Fund
 $4,231,916 
Fidelity Advisors Equity Growth Fund
  21,803,220 
Fidelity Diversified International Fund
  7,434,435 
Blackrock Small Cap Growth Equity Portfolio*
  4,345,687 
American Century Small Cap Value Fund
  3,439,606 
LSV Value Equity Fund
  5,164,210 
T. Rowe Price Retirement 2010
  3,371,220 
T. Rowe Price Retirement 2020
  4,694,547 
T. Rowe Price Retirement 2030
  3,372,668 
T. Rowe Price Retirement 2040
  2,530,401 
T. Rowe Price Retirement 2050
  46,847 
 
Credit Suisse Commondity Return
  1,342,791 
Vanguard Institutional Index Fund
  9,746,536 
 
   
 
    
 
  71,524,084 
 
   
COMMON COLLECTIVE TRUST FUND
    
PNC Investment Contract Fund*
  20,131,728 
 
   
 
BOND FUND
    
Vanguard Total Bond Index Inst
  9,496,041 
 
   
 
    
MONEY MARKET FUNDS
    
Vanguard Admiral Treasury
  11,982,850 
Brady Stock Liquidity Fund*
  1,042 
 
   
 
 
  11,983,892 
 
   
 
    
COMMON STOCK
    
Brady Corporation Class A Non-voting*
  2,992,404 
 
   
 
    
PARTICIPANT LOANS, with rates of interest from 3.2% to 10.25% ;\ndue through June 12, 2037*
  2,365,022 
 
   
 
    
TOTAL ASSETS (HELD AT END OF YEAR)
 $118,493,171 
 
   
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* Party-in-interest.
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SIGNATURES\n
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     The Plan. Pursuant to the requirements of the Securities Exchange Act of 1934, the\ntrustees (or other persons who administer the employee benefit plan) have duly caused this annual\nreport to be signed on its behalf by the undersigned hereunto duly authorized.\n
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\nBRADY MATCHED 401(k) PLAN
\n 		 
Date: June 26, 2009 /s/ GARY VOSE\n  
 Gary Vose   
 Plan Administrative Committee Member  
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EXHIBIT INDEX\n
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Exhibit No. Description
23\n
 Consent of Clifton Gunderson LLP
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Exhibit 23.1\n
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CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM\n
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We consent to the incorporation by reference in Registration Statement No. 333-44505 on Form S-8 of\nour report dated June 24, 2009 appearing in this Annual Report on Form 11-K of Brady Matched\n401(k) Plan for the year ended December 31, 2008 and 2007.\n
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/s/ Clifton Gunderson LLP
\nMilwaukee, Wisconsin
\nJune 24, 2009\n\n
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