UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

F O R M 11 - K

þ		ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended December 31, 2006

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

For the transition period from                                        to                                         

A.

Full title of the plan and the address of the plan, if different from that of the issuer named below:

J.A.M. Plastics, Inc. 401(k) Profit Sharing Plan & Trust

B.

Name of issuer of the securities held pursuant to the plan and the address of its principal executive office:

BRADY CORPORATION
6555 WEST GOOD HOPE ROAD
P.O. BOX 571
MILWAUKEE WI 53202-0571

 

 

Item 1-3. The J.A.M. Plastics, Inc. 401(k) Profit Sharing Plan & Trust (the “J.A.M. Plastics 401(k) Plan”) is subject to the Employee Retirement Income Security Act of 1974, as amended (“ERISA”) and files plan financial statements and schedules prepared in accordance with the financial reporting requirements of ERISA. The J.A.M. Plastics 401(k) Plan is filing such financial statements and schedules in lieu of the financial statements required by these Items, as permitted by Item 4.

Item 4. Pursuant to Section 103(c) of ERISA and the regulations thereunder, the J.A.M. Plastics 401(k) Plan is not required to file audited financial statements. The financial statements and schedules of the J.A.M. Plastics 401(k) Plan required by ERISA are set forth below.

J.A.M. Plastics 401(k) Plan

Financial Statements as of December 31, 2006 and 2005, and for the Year Ended December 31, 2006 and Supplemental Schedule as of December 31, 2006

J.A.M. PLASTICS 401(k) PLAN

TABLE OF CONTENTS

		Page
FINANCIAL STATEMENTS:
Statements of Net Assets Available for Benefits as of December 31, 2006 and 2005		1
Statements of Changes in Net Assets Available for Benefits for the Years Ended December 31, 2006 and 2005		2
Notes to Financial Statements as of and for the Years Ended December 31, 2006 and 2005		3–6
SUPPLEMENTAL SCHEDULE—		7
Form 5500, Schedule H, Part IV, Line 4i—Schedule of Assets (Held at End of Year) as of December 31, 2006		8

NOTE:		All other schedules required by Section 2520.103-10 of the Department of Labor’s Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974 have been omitted because they are not applicable.

J.A.M. PLASTICS 401(k) PLAN

STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS

		2006				2005
ASSETS:
Investments:
Mutual funds		$	494,185			$	591,105
Common collective trust fund			3				—
Brady Corporation common stock			—				—
Participant loans			7,513				10,200
Total investments — at fair value			501,701				601,305
Receivables:
Interest income			654				—
Employer contributions			11,190				13,972
Total receivables			11,844				13,972
NET ASSETS AVAILABLE FOR BENEFITS AT FAIR VALUE		$	513,545			$	615,277
Adjustments from fair value to contract value for fully benefit- responsive investment contracts			1				—
NET ASSETS AVAILABLE FOR BENEFITS		$	513,546			$	615,277

See notes to financial statements.

J.A.M. PLASTICS 401(k) PLAN

STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS

		2006				2005
ADDITIONS:
Contributions:
Participant		$	66,738				79,088
Employer			11,190				13,972
Total contributions			77,928				93,060
Investment income:
Net appreciation in fair value of investments			29,602				35,662
Interest and dividends			10,111				14,786
Net investment income			39,713				50,448
Total additions			117,641				143,508
DEDUCTIONS:
Benefits paid to participants			217,909				34,596
Administrative expenses			1,463				1,203
Total deductions			219,372				35,799
(DECREASE) / INCREASE IN NET ASSETS			(101,731	)			107,709
NET ASSETS AVAILABLE FOR BENEFITS:
Beginning of year			615,277				507,567
End of year		$	513,546			$	615,277

See notes to financial statements.

J.A.M. PLASTICS 401(k) PLAN

NOTES TO FINANCIAL STATEMENTS

1.		DESCRIPTION OF THE PLAN
		The following description of the J.A.M. Plastics, Inc. 401(k) Profit Sharing Plan & Trust (the “Plan”) is provided for general information purposes only. Participants should refer to the Plan document for more complete information.
		General—The Plan is a defined contribution plan covering all full-time employees of J.A.M. Plastics, Inc. (the “Company”) upon the date of hire. The Company controls and manages the operation and administration of the Plan. As of December 31, 2005, Paychex Retirement Services served as the Plan trustee and recordkeeper. Effective September 1, 2006, the Plan changed its trustee and recordkeeper to PNC Bank, N.A. (“PNC”).
		As of December 31, 2006, PNC serves as the recordkeeper and custodian of the Plan. The Plan is subject to the provisions of the Employee Retirement Income Security Act of 1974 , as amended (“ERISA”).
		Contributions—Each year, participants may contribute up to 25% of their pre-tax annual compensation, as defined in the Plan, subject to certain Internal Revenue Code (“IRC”) limitations. Additional amounts may be contributed at the discretion of the Company’s board of directors. Discretionary contributions of $11,190 were made for the year ended December 31, 2006. Participants may also contribute amounts representing distributions from other qualified defined benefit or defined contribution plans.
		Participant Accounts—Individual accounts are maintained for each Plan participant. Each participant’s account is credited with the participant’s contribution and allocations of Company discretionary contributions, participant forfeitures and Plan earnings, and charged with withdrawals and an allocation of Plan losses and administrative expenses. Allocations are based on participant earnings or account balances, as defined in the Plan Document. The benefit to which a participant is entitled is the benefit that can be provided from the participant’s vested account.
		Investments—Participants direct the investment of their contributions into various investment options offered by the Plan. The Plan currently offers a variety of investment options including twelve equity funds, one common collective trust fund, one bond fund, two money market funds, and Brady Corporation Class A Nonvoting Common Stock.
		Vesting—Participants are vested immediately in their contributions plus actual earnings thereon. Vesting in the Company’s contribution portion of their accounts is based on years of continuous service. A participant is vested based on the following vesting schedule: 0% at 1 year, 20% at 2 years, 40% at 3 years, 60% at 4 years, 80% at 5 years, and 100% at 6 years of service.
		Participant Loans—Participants may borrow from their fund. The loans are secured by the balance in the participant’s account and bear interest at rates commensurate with local prevailing rates at the time funds are borrowed as determined quarterly by the Plan administrator. Interest rates range from 5.25% to 7.75% for outstanding loans as of December 31, 2006. Principal and interest is paid ratably through payroll deductions.

		Payment of Benefits—On termination of service, a participant may elect to receive a lump-sum amount equal to the value of the participant’s vested interest in his or her account.
2.		SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
		Basis of Accounting—The accompanying financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America.
		Adoption of New Accounting Guidance — The financial statements reflect the retroactive adoption of Financial Accounting Standards Board Staff Position, FSP AAG INV-1 and SOP 94-4-1, Reporting of Fully Benefit-Responsive Contracts Held by Certain Investment Companies Subject to the AICPA Investment Company Guide and Defined-Contribution Health and Welfare and Pension Plans (the “FSP”). As required by the FSP, the statements of net assets available for benefits present investment contracts at fair value, as well as an additional line item showing an adjustment of fully benefit-responsive contracts from fair value to contract value. The statements of changes in net assets available for benefits are presented on a contract value basis and were not affected by the adoption of the FSP. The adoption of the FSP did not impact the amount of net assets available for benefits at December 31, 2006 and 2005.
		Use of Estimates—The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires Plan management to make estimates and assumptions that affect the reported amounts of net assets available for benefits and changes therein. Actual results could differ from those estimates.
		Risks and Uncertainties—The Plan utilizes investment instruments including mutual funds, common stock and a common collective trust fund. Investment securities, in general, are exposed to various risks, such as interest rate risk, credit risk, and overall market volatility. Due to the level of risk associated with certain investment securities, it is reasonably possible that changes in the values of investment securities will occur in the near term and that such changes could materially affect the amounts reported in the financial statements.
		Investment Valuation and Income Recognition—The Plan’s investments are stated at fair value. Shares of mutual funds are valued at quoted market prices, which represent the net asset value of shares held by the Plan at year end. Common stock is valued at quoted market prices. The common collective trust fund with underlying investments in investment contracts is valued at fair market value of the underlying investments and then adjusted by the issuer to contract value. Participant loans are valued at the outstanding loan balances.
		One of the investment options available in the Plan is the PNC Investment Contract Fund. The PNC Investment Contract Fund is a common collective trust that invests in fully benefit-responsive guaranteed investment contracts (“GICs”) and synthetic guaranteed investment contracts (“SGICs”). Participants may ordinarily direct the withdrawal or transfer of all or a portion of their investment at contract value. Contract value represents contributions made to the fund, plus earnings, less participant withdrawals.
		Purchases and sales of securities are recorded on a trade-date basis. Interest income is recorded on the accrual basis. Dividends are recorded on the ex-dividend date.

		Management fees and operating expenses charged to the Plan for investments in the mutual funds are deducted from income earned on a daily basis and are not separately reflected. Consequently, management fees and operating expenses are reflected as a reduction of net appreciation in the fair value for such investments.
		Administrative Expenses—Administrative expenses of the Plan are paid by the Plan as provided in the Plan Document.
		Payment of Benefits—Benefit payments to participants are recorded upon distribution. There were no amounts allocated to accounts of persons who have elected to withdraw from the Plan but have not yet been paid as of December 31, 2006 and 2005.
3.		INVESTMENTS
		The Plan’s investments that represented 5% or more of the Plan’s net assets available for benefits as of December 31, 2006 and 2005, are as follows:

		2006				2005
Fidelity Adv Equity Growth I		$	171,048			$	134,575				*
LSV Value Equity Fund			101,530				100,534
Fidelity Intermediate Bond			89,024				68,989				*
T Rowe Retirement 2010 Retail			68,060				—
Fidelity Diversified Intl Fund			29,509				—				*

During the year ended December 31, 2006, the Plan’s mutual fund investments (including gains and losses on investments bought and sold, as well as held during the year) appreciated in value as follows:

Equity funds		$	29,449
Bond fund			153
Net appreciation in fair value of investments		$	29,602

4.		PLAN TERMINATION
		Although it has not expressed any intention to do so, the Company has the right under the Plan to discontinue its contributions at any time and to terminate the Plan subject to the provisions set forth in ERISA. In the event that the Plan is terminated, participants would become 100% vested in their accounts.

		2006
Amount reported per financial statement		$	(101,731	)
Adjustments:
Change in employer contributions to adjust from accrual basis to cash basis			2,782
Amount reported per Form 5500		$	(98,949	)

******

SUPPLEMENTAL SCHEDULE

FURNISHED PURSUANT TO THE

DEPARTMENT OF LABOR’S RULES AND REGULATIONS

J.A.M. PLASTICS 401(k) PLAN

FORM 5500, SCHEDULE H, PART IV, LINE 4i—

		Fair
Description		Value
EQUITY FUNDS:
Fidelity Advisors Equity Growth Fund		$	171,048
LSV Value Equity Fund			101,530
T Rowe Price Retirement 2010			68,060
Fidelity Diversified International Fund			29,508
Blackrock Small Cap Growth Equity Portfolio*			19,095
Vanguard Institutional Index Fund			4,426
MFS Emerging Markets Equity Fund			3,496
American Century Small Cap Value Fund			121
T Rowe Price Retirement 2020			20
T Rowe Price Retirement 2030			19
T Rowe Price Retirement 2040			19
PIMCO Commodity Real Return			18
			397,360
COMMON COLLECTIVE TRUST FUND:
PNC Investment Contract Fund*			4
BOND FUND:
Fidelity Advisors Intermediate Bond Fund			89,024
MONEY MARKET FUNDS:
Blackrock Money Market Portfolio*			7,781
Brady Stock Liquidity Fund*			19
			7,800
PARTICIPANT LOANS—At various rates; due through 2020*			7,513
TOTAL ASSETS (HELD AT END OF YEAR)		$	501,701

SIGNATURES

     The Plan. Pursuant to the requirements of the Securities Exchange Act of 1934, the trustees (or other persons who administer the employee benefit plan) have duly caused this annual report to be signed on its behalf by the undersigned hereunto duly authorized.

		J.A.M. PLASTICS, INC. 401(k) PROFIT SHARING PLAN & TRUST
Date: June 29, 2007		/s/ GARY VOSE
		Gary Vose
		Plan Administrative Committee Member