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UNITED STATES SECURITIES AND EXCHANGE COMMISSION
 Washington, D.C. 20549
 FORM 10-K
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    Annual report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
 For the fiscal year ended July 2, 2006.
 o
    
    Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
 Commission File Number 0-25150
 STRATTEC SECURITY CORPORATION
  Wisconsin
    
    39-1804239(State of Incorporation)
    
    (I.R.S. Employer Identification No.)
 3333 West Good Hope Road, Milwaukee, WI 53209
 (414) 247-3333
  Title of each class
    
    Name of exchange on which registeredCommon Stock, $.01 par value
    
    The NASDAQ Stock Market
 None
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##### Table of Contents



Part of the Form 10-KDocument
    
    into which incorporatedPortions of the Annual Report to Shareholders for the
fiscal year ended July 2, 2006.
    
    I, II, IVPortions of the Proxy Statement dated August 29, 2006, for the
Annual Meeting of Shareholders to be held on October 3, 2006.
    
    III
 PROSPECTIVE INFORMATION
    2




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TABLE OF CONTENTS  PART IItem 1. BusinessItem 1A. Risk FactorsItem 1B. Unresolved Staff CommentsItem 2. PropertiesItem 3. Legal ProceedingsItem 4. Submission of Matters to a Vote of Security HoldersPART IIItem 5. Market for Registrants Common Equity, Related Stockholder Matters and Issuer Purchases of Equity SecuritiesItem 6. Selected Financial DataItem 7. Managements Discussion and Analysis of Financial Condition and Results of OperationsItem 7A. Quantitative and Qualitative Disclosures About Market RiskItem 8. Financial Statements and Supplementary DataItem 9. Changes In and Disagreements with Accountants on Accounting and Financial DisclosureItem 9A. Controls and ProceduresItem 9B. Other InformationPART IIIItem 10. Directors and Executive Officers of the RegistrantItem 11. Executive CompensationItem 12. Security Ownership of Certain Beneficial Owners and Management and Related Shareholder MattersItem 13. Certain Relationships and Related TransactionsItem 14. Principal Accountant Fees and ServicesPART IVItem 15. Exhibits and Financial Statement SchedulesSIGNATURESEXHIBIT INDEX TO ANNUAL REPORT ON FORM 10-KEcomonic Value Added Bonus PlanAnnual ReportConsent of Independent Registered Public Accounting FirmCertification of Chairman and Chief Executive OfficerCertification of Chief Financial OfficerSection 1350 Certifications    Table of Contents  
 PART I
 
 Item 1. Business
  Emerging Technologies
    Sources and Availability of Raw Materials
  Patents, Trademarks and Other Intellectual Property
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Dependence Upon Significant Customers
    Sales and Marketing
   Competition
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Research and Development
  Customer Tooling
  Environmental Compliance
    Employees
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Available Information
  
 Item 1A. Risk Factors
  
 Item 1B. Unresolved Staff Comments
  
 Item 2. Properties
  Location
    
    Type
    
    Sq. Ft.
    
    Owned or LeasedMilwaukee, Wisconsin
    
    Headquarters and General Offices; Component
Manufacturing, Assembly and Service Parts Distribution
    
    
    352,000
    
    
    OwnedJuarez, Chihuahua Mexico
    
    Subsidiary Offices and Assembly
    
    
    97,000
    
    
    OwnedJuarez, Chihuahua Mexico
    
    Subsidiary Offices and Key Finishing Operations
    
    
    62,000
    
    
    LeasedEl Paso, Texas
    
    Finished Goods Warehouse
    
    
    22,800
    
    

Leased**Troy, Michigan
    
    Sales and Engineering Office for Detroit Customer Area
    
    
    6,000
    
    

Leased**
 
 **
    
    Leased unit within a complex.  
 Item 3. Legal Proceedings
  
 Item 4. Submission of Matters to a Vote of Security Holders
  
 PART II
 
 Item 5. Market for Registrants Common Equity, Related Stockholder Matters and Issuer
Purchases of Equity Securities
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Total
    
    
    Average
    
    
    Total Number
    
    
    Maximum NumberNumber
    
    
    Price
    
    
    Of Shares Purchased
    
    
    Of Shares that MayOf Shares
    
    
    Paid Per
    
    
    As Part of Publicly
    
    
    Yet be PurchasedPeriod
    
    Purchased
    
    
    Share
    
    
    Announced Program
    
    
    Under the ProgramApril 3, 2006  May 7, 2006
    
    
    51,400
    
    
    $
    35.28
    
    
    
    51,400
    
    
    
    393,108May 8, 2006  June 4, 2006
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    393,108June 5, 2006  July 2, 2006
    
    
    12,200
    
    
    $
    40.99
    
    
    
    12,200
    
    
    
    380,908Total
    
    
    63,600
    
    
    $
    36.38
    
    
    
    63,600
    
    
    
    380,908
   
 Item 6. Selected Financial Data
  
 Item 7. Managements Discussion and Analysis of Financial Condition and Results of Operations
  
 Item 7A. Quantitative and Qualitative Disclosures About Market Risk
  
 Item 8. Financial Statements and Supplementary Data
   
 Item 9. Changes In and Disagreements with Accountants on Accounting and Financial Disclosure
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Item 9A. Controls and Procedures
     
 Item 9B. Other Information
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PART III
 
 Item 10. Directors and Executive Officers of the Registrant
   
 Item 11. Executive Compensation
  
 Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Shareholder
Matters
  Equity Compensation Plan Information
  Number of
    
    
    
    
    
    
    Number ofcommon shares to be
    
    
    
    
    
    
    common sharesissued upon exercise
    
    
    Weighted-average
    
    
    available for futureof outstanding
    
    
    exercise price of
    
    
    issuance underoptions,
    
    
    outstanding options,
    
    
    equityPlan Category
    
    warrants, and rights
    
    
    warrants, and rights
    
    
    compensation plansEquity compensation plans approved
by shareholders
    
    
    283,530
    
    
    $
    56.53
    
    
    
    311,813Equity compensation plans not
approved by shareholders
    
    
    
    
    
    
    
    
    
    
    Total
    
    
    283,530
    
    
    $
    56.53
    
    
    
    311,813
 
 Item 13. Certain Relationships and Related Transactions
  
 Item 14. Principal Accountant Fees and Services
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PART IV
 
 Item 15. Exhibits and Financial Statement Schedules
 (a)
    
    The following documents are filed as part of this report:
 (1)(i)
    
    Financial Statements  The following financial statements of the Company,
included on pages 18 through 35 of the Companys 2006 Annual Report to Shareholders,
are incorporated by reference in Item 8.Reports of Independent Registered Public Accounting FirmConsolidated Balance Sheets  as of July 2, 2006 and July 3, 2005Consolidated Statements of Income  years ended July 2, 2006, July 3, 2005 and June 27, 2004Consolidated Statements of Shareholders Equity  years ended July 2, 2006, July 3, 2005 and June 27, 2004Consolidated Statements of Cash Flows  years ended July 2, 2006, July 3, 2005 and June 27, 2004Notes to Financial Statements(2)
    
    Financial Statement ScheduleAll schedules have been omitted because they are not applicable or are not required, or
because the required information has been included in the Financial Statements or Notes thereto.(3)
    
    Exhibits. See Exhibit Index beginning on page 12.
 (b)
    
    ExhibitsThe response to this portion of Item 15 is submitted as a separate section of this
report.
 (c)
    
    Financial Statement SchedulesThe response to this portion of Item 15 is submitted as a separate section of this
report.
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SIGNATURES
  STRATTEC SECURITY CORPORATIONBy:
    
    /s/ Harold M. Stratton IIHarold M. Stratton IIChairman, President and Chief Executive Officer
   Signature
    
    Title
    
    Date/s/ Harold M. Stratton II
    
    Chairman, President, Chief Executive
    
    August 22, 2006Harold M. Stratton II
    
    Officer, and Director(Principal Executive Officer)/s/ Frank J. Krejci
    
    Director
    
    August 22, 2006Frank J. Krejci/s/ Michael J. Koss
    
    Director
    
    August 22, 2006Michael J. Koss/s/ Robert Feitler
    
    Director
    
    August 22, 2006Robert Feitler/s/ David R. Zimmer
    
    Director
    
    August 22, 2006David R. Zimmer/s/ Patrick J. Hansen
    
    Senior Vice President, Chief
    
    August 22, 2006Patrick J. Hansen
    
    Financial Officer, Secretary and Treasurer(Principal Financial and
Accounting Officer)
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##### Table of Contents



EXHIBIT INDEX TO ANNUAL REPORT
ON FORM 10-K
 Exhibit3.1 (2)
    
    Amended and Restated Articles of Incorporation of the Company
    
    *3.2 (10)
    
    By-laws of the Company
    
    *4.1 (11)
    
    Promissory Note dated November 1, 2005 by and between the Company and M&I Bank
    
    *10.1 (10) **
    
    Amended STRATTEC SECURITY CORPORATION Stock Incentive Plan
    
    *10.2 (10) **
    
    Form of Restricted Stock Grant Agreement
    
    *10.3 (3) (4) (5) (6)(8)(9) **
    
    Employment Agreements between the Company and the identified executive officers
    
    *10.4 (1) (3) (4)(5) (6)(8)(9) **
    
    Change In Control Agreements between the Company and the identified executive officers
    
    *10.5**
    
    Amended STRATTEC SECURITY CORPORATION Economic Value Added Plan for
Executive Officers and Senior Managers10.6 (6) **
    
    Amended STRATTEC SECURITY CORPORATION Economic Value Added Plan for
Non-employee Members of the Board of Directors
    
    *10.7 (12) **
    
    Amended STRATTEC SECURITY CORPORATION Supplemental Executive
Retirement Plan
    
    *13
    
    Annual Report to Shareholders for the year ended July 2, 200621(7)
    
    Subsidiaries of the Company
    
    *23.1
    
    Consent of Independent Registered Public Accounting Firm dated August 22, 200631.1
    
    Rule 13a-14(a) Certification for Harold M. Stratton II, Chairman and Chief Executive Officer31.2
    
    Rule 13a-14(a) Certification for Patrick J. Hansen, Chief Financial Officer32 (13)
    
    18 U.S.C. Section 1350 Certifications
 
 *
    
    Previously filed**
    
    Management contract or compensatory plan or arrangement(1)
    
    Incorporated by reference from Amendment No. 1 to the Form 10 filed on January 20,
1995.(2)
    
    Incorporated by reference from Amendment No. 2 to the Form 10 filed on February 6,
1995.(3)
    
    Incorporated by reference from the June 27, 1999 Form 10-K filed on September
17, 1999.(4)
    
    Incorporated by reference from the July 1, 2001 Form 10-K filed on September 4,
2001.(5)
    
    Incorporated by reference from the June 30, 2002 Form 10-K filed on August 28,
2002.(6)
    
    Incorporated by reference from the June 29, 2003 Form 10-K filed on August 28,
2003.(7)
    
    Incorporated by reference from the June 27, 2004 Form 10-K filed on August 27,
2004.(8)
    
    Incorporated by reference from the September 26, 2004 Form 10-Q filed on
November 2, 2004.(9)
    
    Incorporated by reference from the March 27, 2005 Form 10-Q filed on April 29,
2005.(10)
    
    Incorporated by reference from the Form 8-K filed on October 7, 2005.(11)
    
    Incorporated by reference from the October 2, 2005 Form 10-Q filed on November
4, 2005.(12)
    
    Incorporated by reference from the January 1, 2006 Form 10-Q filed on February
7, 2006.(13)
    
    This certification is not filed for purposes of Section 18 of the Securities
Exchange Act of 1934, as amended, or incorporated by reference into any filing under the
Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended. 12