Form 11-K

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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 ACT OF 1934

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For the fiscal year ended December 31, 2010

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o		TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

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For the transition period from to\n

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\nCommission file number 1-14959 Brady Corporation\n

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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:\n

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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\n

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BRADY MATCHED 401(k) PLAN
\nTABLE OF CONTENTS\n

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	PAGE

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM		1

FINANCIAL STATEMENTS

Statements of Net Assets Available for Benefits		2

Statements of Changes in Net Assets Available for Benefits		3

Notes to Financial Statements		4

SUPPLEMENTAL SCHEDULES		14

Schedule H, Line 4a — Schedule of Delinquent Participant Contributions		15

Schedule H, Line 4i — Schedule of Assets (Held at End of Year)		16

Exhibit 23.1 - Consent of Clifton Gunderson 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 1974\nhave been omitted because they are not applicable.

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Report of Independent Registered Public Accounting Firm\n

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Retirement Committee
\nBrady Matched 401(k) Plan
\nMilwaukee, Wisconsin\n\n

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We have audited the accompanying statements of net assets available for benefits of Brady Matched\n401(k) Plan as of December 31, 2010 and 2009, 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

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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 includes examining, on a\ntest basis, evidence supporting the amounts and disclosures in the financial statements. An audit\nalso 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

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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,\n2010 and 2009, and the changes in net assets available for benefits for the years then ended in\nconformity with accounting principles generally accepted in the United States of America.\n

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Our audits were performed for the purpose of forming an opinion on the basic financial statements\ntaken as a whole. The accompanying supplemental schedules are presented for purposes of additional\nanalysis and are not a required part of the basic financial statements but are 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. These supplemental schedules\nare the responsibility of the Plan’s management. The supplemental schedules have been subjected to\nthe auditing procedures applied in the audits of the basic financial statements and, in our\nopinion, are presented fairly, in all material respects in relation to the basic financial\nstatements taken as a whole.\n

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/s/ Clifton Gunderson LLP
\nMilwaukee, Wisconsin
\nJune 24, 2011\n\n

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1\n

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BRADY MATCHED 401(k) PLAN\n

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STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS

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December 31, 2010 and 2009

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	2010			2009
ASSETS
Investments — at fair value	$	163,101,545			$	147,712,095


Cash		34,145				7


Receivables
Company contributions		911,924				730,242
Participant contributions		—				252,800
Notes receivable from participants		3,088,834				2,859,611


Total receivables		4,000,758				3,842,653


Total assets		167,136,448				151,554,755

LIABILITIES — excess contributions payable		(808	)			(6,866	)


NET ASSETS AVAILABLE FOR BENEFITS\nAT FAIR VALUE		167,135,640				151,547,889

Adjustments from fair value to contract value for fully\nbenefit-responsive investment contracts		(378,761	)			44,408


NET ASSETS AVAILABLE FOR BENEFITS	$	166,756,879			$	151,592,297

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The accompanying notes are an integral part of the financial statements.\n

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BRADY MATCHED 401(k) PLAN\n

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STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS

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Years Ended December 31, 2010 and 2009

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	2010		2009
ADDITIONS TO NET ASSETS ATTRIBUTED TO
Contributions
Participant	$	8,212,415		$	7,393,574
Company		4,274,744			4,165,190
Rollover		733,279			229,034


Total contributions		13,220,438			11,787,798


Investment income
Net appreciation in fair value of investments		15,390,998			25,620,160
Dividends		2,340,887			2,361,252
Interest		177			1,588


Net investment income		17,732,062			27,983,000


Interest income from notes receivable from participants		135,778			143,192

Transfers of assets from affiliated plans		3,841,937			10,075,594


Total additions		34,930,215			49,989,584


DEDUCTIONS FROM NET ASSETS ATTRIBUTED TO
Benefits paid to participants		19,371,498			18,027,408
Administrative expenses		394,135			319,081


Total deductions		19,765,633			18,346,489


NET INCREASE		15,164,582			31,643,095


NET ASSETS AVAILABLE FOR BENEFITS,\nBEGINNING OF YEAR		151,592,297			119,949,202


NET ASSETS AVAILABLE FOR BENEFITS,\nEND OF YEAR	$	166,756,879		$	151,592,297

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The accompanying notes are an integral part of the financial statements.\n

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3\n

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BRADY MATCHED 401(k) PLAN\n

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NOTES TO FINANCIAL STATEMENTS

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AS OF AND FOR THE YEARS ENDED DECEMBER 31, 2010 AND 2009

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NOTE 1 — DESCRIPTION OF THE PLAN\n

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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

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General\n

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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

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Contributions\n

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Each year, participants may contribute up to 50% of their annual base compensation subject to the\nInternal Revenue Code (IRC) limitations. These voluntary contributions can be withdrawn in whole or\npart in the event of qualifying emergencies (as defined by the Plan), subject to certain\nrestrictions. The Company is required to contribute a 100% matching contribution of the first 3%\nand 50% of the next 2% that a participant contributes, subject to compensation limits of $245,000\nfor calendar year 2010, adjusted for inflation. Participants self-direct all participant and\nCompany contributions.\n

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Participant Accounts\n

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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

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For any newly eligible participant, the Plan will automatically withhold 3% of the employee’s pay,\non a pre-tax basis, unless a waiver form to opt-out of the plan was completed by the employee\nwithin ninety days of their hire date. The withheld funds will be deposited into an account under\nthe employee’s name in the Plan.\n

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BRADY MATCHED 401(k) PLAN

NOTES TO FINANCIAL STATEMENTS

AS OF AND FOR THE YEARS ENDED DECEMBER 31, 2010 AND 2009

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NOTE 1 — DESCRIPTION OF THE PLAN (continued)\n

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Investments\n

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Investment options include various equity funds, a common collective trust fund, a bond fund, two\nmoney market funds, and Brady Corporation Class A Non-Voting Common Stock.\n

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Vesting\n

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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. The participants’ share of the Company contribution\nbecomes fully vested, in any event, upon normal retirement at age 65, termination due to permanent\nor total disability or death, or a plan termination.\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 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

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Notes Receivable from Participants \n

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Participants may borrow up to 50% of their vested account balance. Individual loan amounts must be\nat least $1,000; however, aggregate loan amounts may not exceed $50,000. The interest rate for the\nloans is the prime rate. Loan terms may range from one to five years, or longer if for the\npurchase of a primary residence. The loans are secured by the balance in the participant’s account.\nAs of December 31, 2010, the interest rates on outstanding loans range from 3.25% to 10.25%.\n

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Payment of Benefits\n

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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

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Forfeited Accounts\n

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At December 31, 2010 and 2009, forfeited non-vested accounts totaled $55,056 and $282,737,\nrespectively. These amounts were used to reduce Company contribution receivables as of December 31,\n2010 and 2009.\n

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BRADY MATCHED 401(k) PLAN

NOTES TO FINANCIAL STATEMENTS

AS OF AND FOR THE YEARS ENDED DECEMBER 31, 2010 AND 2009

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NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES\n

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Basis of Accounting\n

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The accompanying financial statements have been prepared under the accrual basis in accordance with\naccounting principles generally accepted in the United States of America.\n

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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 contract value is the amount participants would receive if they were\nto initiate permitted transactions under the terms of the plans. The Statement of Net Assets\nAvailable for Benefits presents the fair value of the investment contract as well as the adjustment\nof the fully benefit-responsive investment contract from fair value to contract value. The\nStatement of Changes in Net Assets Available for Benefits is prepared on a contract value basis.\n

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Use of Estimates\n

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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

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Notes Receivable from Participants\n

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Notes receivable from participants are measured at their unpaid principal balance plus any accrued\nbut unpaid interest. Delinquent participant loans are reclassified as distributions based upon the\nterms of the Plan document.\n

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Risks and Uncertainties\n

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The Plan utilizes various investment instruments, including various equity funds, a common\ncollective trust fund, a bond fund, two money market funds, and common stock. Investment\nsecurities, in general, are exposed to various risks, such as interest rate, credit, and overall\nmarket volatility. Due to the level of risk associated with certain investment securities, it is\nreasonably possible that changes in the values of investment securities will occur in the near term\nand that such changes could materially affect the amounts reported in the financial statements.\n

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BRADY MATCHED 401(k) PLAN

NOTES TO FINANCIAL STATEMENTS

AS OF AND FOR THE YEARS ENDED DECEMBER 31, 2010 AND 2009

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NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)\n

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Changes in Accounting Principles\n

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The Plan adopted a new accounting standard, Reporting Loans to Participants by Defined Contribution\nPension Plans, which provides clarification on how loans to participants should be classified and\nmeasured by defined contribution pension benefit plans. This guidance requires that loans to\nparticipants be reported as notes receivable from participants in the statement of net assets\navailable for benefits and be measured at their unpaid principal balance plus any accrued but\nunpaid interest. The Plan adopted this standard in its December 31, 2010 financial statements and\nhas reclassified participant loans of $2,859,611 from participant-directed investments to notes\nreceivable from participants as of December 31, 2009. The Plan also reclassified interest income\nfrom participant loans of $143,192 from investment income to interest income from notes receivable\nfrom participants for the year ended December 31, 2009. Net assets of the Plan were not affected\nby the adoption of this standard.\n

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Investment Valuation and Income Recognition\n

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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

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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

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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

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Administrative Expenses\n

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Administrative fees are paid by the Plan. The Company pays the other accounting, investment\nmanagement, legal and miscellaneous fees of the Plan.\n

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Payment of Benefits\n

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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, 2010 and 2009.\n

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BRADY MATCHED 401(k) PLAN

NOTES TO FINANCIAL STATEMENTS

AS OF AND FOR THE YEARS ENDED DECEMBER 31, 2010 AND 2009

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NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)\n

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Excess Contributions Payable\n

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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 of $808 and $6,866 for\nthe years ended December 31, 2010 and 2009, respectively.\n

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NOTE 3 — INVESTMENTS\n

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The value of individual investments held which exceeded 5% of the net assets available for benefits\nat December 31, 2010 and 2009, was as follows:\n

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	2010		2009

Growth Fund of America	$	26,399,363		$	26,267,719
PNC Investment Contract Fund*		**17,791,748			17,708,602
Vanguard Institutional Index Fund		13,677,163			12,254,421
Vanguard Total Bond Index Inst		13,195,596			11,663,878
Fidelity Diversified International Fund		11,843,958			11,219,485
Oppenheimer Developing Markets		10,370,602			8,718,437
Vanguard Prime Money Market Fund		10,367,180			10,856,178
LSV Value Equity Fund		9,399,024			7,727,108
T. Rowe Price Retirement 2030		8,460,191			***

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*		Party-in-interest in the Plan.

**		This represents contract value which differs from fair value as noted in the supplemental\nschedule.

***		Less than 5% of the Plan’s net assets.

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During the years ended December 31, 2010 and 2009, the Plan’s investments (including gains and\nlosses on investments bought and sold, as well as held during the year) appreciated in value as\nfollows:\n

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	2010		2009

Equity funds	$	14,380,502		$	23,579,784
Bond fund		281,421			184,160
Common collective trust fund		382,031			585,435
Brady Corporation common stock		347,044			1,270,781


Net appreciation in fair value of\ninvestments	$	15,390,998		$	25,620,160

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BRADY MATCHED 401(k) PLAN

NOTES TO FINANCIAL STATEMENTS

AS OF AND FOR THE YEARS ENDED DECEMBER 31, 2010 AND 2009

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NOTE 4 — FAIR VALUE MEASUREMENT\n

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Generally accepted accounting principles establishes a framework for measuring fair value. That\nframework provides a fair value hierarchy that prioritizes the inputs to valuation techniques used\nto measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in\nactive markets for identical assets or liabilities (level 1 measurements) and the lowest priority\nto unobservable inputs (level 3 measurements). The three levels of the fair value hierarchy are\ndescribed as follows:\n

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The Plan’s net assets measured at fair market value are classified in one of the following\ncategories:\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, 2010.\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 the net asset value of the fund based on the fair\nvalue of the underlying investments and then adjusted by the issuer to contract value. The\ncollective trust fund does not have a finite life, unfunded commitments relating to these types of\ninvestments, or significant restrictions on redemption. The money market funds are valued at a\nstable $1.00 net asset value. Such securities are classified within Level 2 of the valuation\nhierarchy.\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

NOTES TO FINANCIAL STATEMENTS

AS OF AND FOR THE YEARS ENDED DECEMBER 31, 2010 AND 2009

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NOTE 4 — FAIR VALUE MEASUREMENT (continued)\n

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The following table sets forth by level, within the fair value hierarchy, the Plan’s assets at fair\nvalue as of December 31, 2010.\n

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	Level 1		Level 2			Level 3		Total
Mutual funds
Growth funds	$	33,791,311		$	—		$	—	$	33,791,311
Balanced funds		13,677,163			—			—		13,677,163
Value funds		16,674,805			—			—		16,674,805
International funds		22,214,560			—			—		22,214,560
Target date funds		27,258,589			—			—		27,258,589
Bond funds		13,195,596			—			—		13,195,596
Other funds		3,690,103			—			—		3,690,103
Money market funds		—			10,373,593			—		10,373,593
Brady common stock		4,055,316			—			—		4,055,316
Common collective\ntrust fund		—			18,170,509			—		18,170,509


Total	$	134,557,443		$	28,544,102		$	—	$	163,101,545

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The following table sets forth by level, within the fair value hierarchy, the Plan’s assets at fair\nvalue as of December 31, 2009.\n

\n\n

\n\n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n\n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \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
Mutual funds
Growth funds	$	32,895,893		$	—		$	—	$	32,895,893
Balanced funds		12,254,421			—			—		12,254,421
Value funds		13,505,011			—			—		13,505,011
International funds		19,937,922			—			—		19,937,922
Target date funds		23,128,261			—			—		23,128,261
Bond funds		11,663,878			—			—		11,663,878
Other funds		1,904,967			—			—		1,904,967
Money market funds		—			10,856,308			—		10,856,308
Brady common stock		3,901,240			—			—		3,901,240
Common collective\ntrust fund		—			17,664,194			—		17,664,194


Total	$	119,191,593		$	28,520,502		$	—	$	147,712,095

\n\n

10\n

\n\n

BRADY MATCHED 401(k) PLAN

NOTES TO FINANCIAL STATEMENTS

AS OF AND FOR THE YEARS ENDED DECEMBER 31, 2010 AND 2009

\n\n\n

NOTE 5 — PLAN TERMINATION\n

\n\n\n

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 Company matching contributions in their accounts.\n

\n\n\n

NOTE 6 — FEDERAL INCOME TAX STATUS\n

\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

\n\n\n

NOTE 7 — EXEMPT PARTY-IN-INTEREST TRANSACTIONS\n

\n\n\n

The Plan invests in Company common stock. In addition, certain plan investments represent shares of\nmutual funds and a common collective trust fund 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

\n\n\n

At December 31, 2010 and 2009, the Plan held 124,358 and 129,998 shares, respectively, of common\nstock of Brady Corporation, with a cost basis of $2,905,633 and $2,824,087, respectively. During\nthe years ended December 31, 2010 and 2009, the Plan recorded dividend income from the common stock\nof Brady Corporation of $90,186 and $93,305, respectively.\n

\n\n\n

NOTE 8 — RECONCILIATION TO FORM 5500\n

\n\n\n

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

\n\n\n

The following table reconciles net assets available for benefits per the financial statements to\nthe Plan’s Form 5500 as of December 31:\n

\n\n


	2010		2009

Net assets available for benefits per financial statements	$	166,756,879		$	151,592,297

Adjustment from contract value to fair value for fully\nbenefit-responsive investment contracts		378,761			(44,408	)


Amounts reported per Form 5500	$	167,135,640		$	151,547,889

\n\n

11\n

\n\n

BRADY MATCHED 401(k) PLAN

NOTES TO FINANCIAL STATEMENTS

AS OF AND FOR THE YEARS ENDED DECEMBER 31, 2010 AND 2009

\n\n\n

NOTE 8 — RECONCILIATION TO FORM 5500 (continued)\n

\n\n\n

The increase in net assets available for benefits per the financial statements for the years ended\nDecember 31, 2010 and 2009 includes the transfer of assets from another plan. The amounts reported\nper Form 5500 do not include the transfer of assets from another plan.\n

\n\n\n

The following table reconciles the increase in net assets available for benefits per the financial\nstatements to the Form 5500 for the year ended December 31:\n

\n\n


	2010			2009

Increase in net assets available for benefits per\nfinancial statements	$	15,164,582			$	31,643,095

Adjustment from contract value to fair value for fully\nbenefit-responsive investment contract at end of\nyear		378,761				(44,408	)

Adjustment from contract value to fair value for fully\nbenefit-responsive investment contract at beginning\nof year		44,408				800,143

Transfer of assets to Plan		(3,841,937	)			(10,075,594	)


Amounts reported per Form 5500	$	11,745,814			$	22,323,236

\n\n\n

NOTE 9 — TRANSFERS OF ASSETS FROM AFFILIATED PLANS\n

\n\n\n

Effective January 1, 2010, the Clement Communications Incorporated Pension Plan and the Stopware,\nInc. 401(k) Plan merged into the Plan, resulting in a transfer of assets to the Plan of $3,841,937\nfor the year ended December 31, 2010.\n

\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 Plan, resulting in a transfer of assets to the Plan of $10,075,594 for\nthe year ended December 31, 2009.\n

\n\n

12\n

\n\n

BRADY MATCHED 401(k) PLAN

NOTES TO FINANCIAL STATEMENTS

AS OF AND FOR THE YEARS ENDED DECEMBER 31, 2010 AND 2009

\n\n\n\n\n

NOTE 10 — SUBSEQUENT EVENTS\n

\n\n\n

Management evaluated subsequent events through the date the financial statements\nwere issued. Events or transactions occurring after December 31,\n2010, but prior to when the financial statements were issued that provide additional evidence about conditions that existed at December 31, 2010 have been\nrecognized in the financial statements for the year ended December 31, 2010. Events or transactions\nthat provided evidence about conditions that did not exist at December 31, 2010 but arose before\nthe financial statements were issued, have not been recognized in the financial statements for the\nyear ended December 31, 2010.\n

\n\n\n

This information is an integral part of the accompanying financial statements.\n

\n\n\n\n

\n\n

13\n

\n\n\n\n\n

BRADY MATCHED 401(k) PLAN\n

\n\n

SCHEDULE H, LINE 4a — SCHEDULE OF DELINQUENT

\n\n

PARTICIPANT CONTRIBUTIONS

\n\n

As of December 31, 2010

\n\n\n

EIN #: 39-0178960
\nPlan #: 003\n

\n\n


	Participant
	Contributions
	Transferred
	Late to Plan				Total that Constitute Nonexempt Prohibited Transactions
	Check here if
	Late Participant													Total Fully
	Loan Repayments							Contributions		Contributions			Corrected
	are included:	Relating to		Contributions			Corrected Outside		Pending Correction		Under VFCP
	þ	Plan Year		Not Corrected			VFCP		in VFCP		and PTE 2002-51

$	609,599		2006		$	—		$	609,302		$	297		$	—
	587,258		2007			—			586,972			286			—
	903,744		2009			—			903,217			438			89
	1,076,624		2010			—			1,076,091			524			9

\n\n

15\n

\n\n\n

BRADY MATCHED 401(k) PLAN\n

\n\n

SCHEDULE H, LINE 4i — SCHEDULE OF ASSETS (HELD AT END OF YEAR)

\n\n

AS OF DECEMBER 31, 2010

\n\n\n

EIN #: 39-0178960
\nPlan #: 003\n

\n\n


	Fair
Description	Value

EQUITY FUNDS
Oppenheimer Developing Markets	$	10,370,602
Growth Fund of America		26,399,363
Fidelity Diversified International Fund		11,843,958
Blackrock Small Cap Growth Eq Instl*		7,391,948
American Cent Sm Cap Val Inst		7,275,781
LSV Value Equity Fund		9,399,024
T. Rowe Price Retirement 2010		3,637,575
T. Rowe Price Retirement 2020		8,287,198
T. Rowe Price Retirement 2030		8,460,191
T. Rowe Price Retirement 2040		5,688,924
T. Rowe Price Retirement 2050		1,184,701
Credit Suisse Commodity Return		3,690,103
Vanguard Institutional Index Fund		13,677,163


		117,306,531


COMMON COLLECTIVE TRUST FUND
PNC Investment Contract Fund*		18,170,509


BOND FUND
Vanguard Total Bond Index Inst		13,195,596


MONEY MARKET FUNDS
Vanguard Prime Money Market Fund		10,367,180
Brady Stock Liquidity Fund*		6,413


		10,373,593

COMMON STOCK
Brady Corporation Class A Non-voting*		4,055,316


NOTES RECEIVABLE from PARTICIPANTS,\nat various interest rates and\ndue through November 9, 2040*		3,088,834


TOTAL ASSETS (HELD AT END OF YEAR)	$	166,190,379

\n\n\n\n\n\n \n \n \n\n\n\n \n \n \n\n\n


*		Party-in-interest in the Plan.

\n\n

16\n

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\n		BRADY MATCHED 401(k) PLAN

Date: June 24, 2011\n		/s/ GARY VOSE\n \nGary Vose\n
\n		Plan Administrative Committee Member


Exhibit No.			Description
23.1			Consent of Clifton Gunderson LLP