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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
 Washington, D.C. 20549
 FORM 10-K
 þ
    
    Annual report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
 For the fiscal year ended July 1, 2007.
 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  (Registrants telephone number, including area code)
  Title of each class
    
    Name of exchange on which registeredCommon Stock, $.01 par value
    
    The NASDAQ Stock Market
  (Title of Class)
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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 1, 2007.
    
    I, II, IVPortions of the Proxy Statement dated August 30, 2007, for the
Annual Meeting of Shareholders to be held on 
October 9, 2007.
    
    III
 PROSPECTIVE INFORMATION
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TABLE OF CONTENTS  PART IItem 1. BusinessItem 1A. Risk FactorsItem 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 and Corporate GovernanceItem 11. Executive CompensationItem 12. Security Ownership of Certain Beneficial Owners and Management and Related Shareholder MattersItem 13. Certain Relationships and Related Transactions and Director IndependenceItem 14. Principal Accountant Fees and ServicesPART IVItem 15. Exhibits and Financial Statement SchedulesSIGNATURESEXHIBIT INDEX TO ANNUAL REPORTAmended Economic Value Added Bonus Plan for Executive Officers and Senior ManagersAmended Economic Value Added Bonus Plan for Non-Employee Members of the Board of DirectorsAnnual Report to ShareholdersSubsidiaries of the CompanyConsent of Independent Registered Public Accounting Firm302 Certification of Chairman and Chief Executive Officer302 Certification 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; ComponentManufacturing, Assembly and Service Parts Distribution
    
    
    352,000
    
    
    OwnedJuarez, Chihuahua Mexico
    
    Subsidiary Offices and Assembly
    
    
    97,000
    
    
    OwnedJuarez, Chihuahua Mexico
    
    Subsidiary Offices, Key Finishing,
Injection Molding and AssemblyOperations
    
    
    62,000
    
    
    LeasedEl Paso, Texas
    
    Finished Goods Warehouse
    
    
    38,000
    
    
    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 2, 2007  May 6, 2007
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    279,008May 7, 2007  June 3, 2007
    
    
    12,513
    
    
    $
    47.31
    
    
    
    12,513
    
    
    
    266,495June 4, 2007  July 1, 2007
    
    
    11,800
    
    
    $
    47.55
    
    
    
    11,800
    
    
    
    254,695Total
    
    
    24,313
    
    
    $
    47.42
    
    
    
    24,313
    
    
    
    254,695
   
 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
  
 Item 9A. Controls and Procedures
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Item 9B. Other Information
   
    
    Under the Executive EVA plan as previously amended on August 22, 2006, a participant could not
receive a bonus payment even if the individual participant met their own personal
objectives if no bonuses were to be paid to participants in the Companys Economic Value
Added Bonus Plan for Salaried Employees or Economic Value Added Bonus Plan for Represented
Employee Associates because the Companys performance factor was below zero. This
restriction has been eliminated so that individual performance can be rewarded based on the
participants meeting his or her personal objectives.
    
    A participants Bonus Bank balance may not be negative.
    
    The plan no longer excludes cash and investments in determining the Companys level of
capital employed in its business. Additionally, the plan assumes that the Companys
capital structure is 80% equity and 20% debt. Using this assumed capital structure, the
Companys cost of capital under the amended plan has been set at 10% for fiscal 2008. The
Companys Compensation Committee will review the Companys cost of capital annually prior
to each fiscal year.
    
    The EVA plan target for fiscal year 2008 was set at $1,154,000.
    
    The EVA leverage factor under the plan was reduced from 5% to 3%. The EVA leverage
factor for the plan for fiscal year 2008 was set at $3,316,000.
  
    
    The plan no longer excludes cash and investments in determining the Companys level of
capital employed in its business. Additionally, the plan assumes that the Companys
capital structure is 80% equity and 20% debt. Using this assumed capital structure, the
Companys cost of capital under the amended plan has been set at 10% for fiscal 2008. The
Companys Compensation Committee will review the Companys cost of capital annually prior
to each fiscal year.
    
    The EVA plan target for fiscal year 2008 was set at $1,154,000.
    
    The EVA leverage factor under the plan was reduced from 5% to 3%. The EVA leverage
factor for the plan for fiscal year 2008 was set at $3,316,000.
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PART III
 
 Item 10. Directors and Executive Officers and Corporate Governance
   
 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
    
    
    235,420
    
    
    $
    58.71
    
    
    
    342,823Equity compensation
plans not approved
by shareholders
    
    
    
    
    
    
    
    
    
    
    Total
    
    
    235,420
    
    
    $
    58.71
    
    
    
    342,823
 
 Item 13. Certain Relationships and Related Transactions and Director Independence
  
 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 19 through 38 of the Companys 2007 Annual Report to Shareholders,
are incorporated by reference in Item 8.Reports of Independent Registered Public Accounting FirmConsolidated Balance Sheets  as of July 1, 2007 and July 2, 2006Consolidated Statements of Income  years ended July 1, 2007, July 2, 2006 and July 3, 2005Consolidated Statements of Shareholders Equity  years ended July 1, 2007, July 2,
2006 and July 3, 2005Consolidated Statements of Cash Flows  years ended July 1, 2007, July 2, 2006 and July 3,
2005Notes 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

          Harold M. Stratton II
    
    Chairman, President, Chief Executive
Officer, and Director
(Principal Executive Officer)
    
    August 30, 2007/s/ Frank J. Krejci

          Frank J. Krejci
    
    Director
    
    August 21, 2007/s/ Michael J. Koss

          Michael J. Koss
    
    Director
    
    August 21, 2007/s/ Robert Feitler

          Robert Feitler
    
    Director
    
    August 21, 2007/s/ David R. Zimmer

          David R. Zimmer
    
    Director
    
    August 21, 2007/s/ Patrick J. Hansen

          Patrick J. Hansen
    
    Senior Vice President, Chief
Financial Officer,
Secretary and Treasurer
(Principal Financial and
Accounting Officer)
    
    August 30, 2007
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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 (9)
    
    By-laws of the Company
    
    *4.1 (11)
    
    Promissory Note dated November 1, 2006 by and between the Company and M&I Bank
    
    *10.1 (9) **
    
    Amended STRATTEC SECURITY CORPORATION Stock Incentive Plan
    
    *10.2 (9) **
    
    Form of Restricted Stock Grant Agreement
    
    *10.3 (3) (4) (5) (6)(7)(8) (12)**
    
    Employment Agreements between the Company and the identified executive officers
    
    *10.4 (1) (3) (4)(5) (6)(7)(8) (12)**
    
    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 **
    
    Amended STRATTEC SECURITY CORPORATION Economic Value Added Plan for
Non-employee Members of the Board of Directors10.7 (10) **
    
    Amended STRATTEC SECURITY CORPORATION Supplemental Executive Retirement Plan
    
    *13
    
    Annual Report to Shareholders for the year ended July 1, 200721
    
    Subsidiaries of the Company23.1
    
    Consent of Independent Registered Public Accounting Firm dated August 21, 200731.1
    
    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 September 26, 2004 Form 10-Q filed on
November 2, 2004.(8)
    
    Incorporated by reference from the March 27, 2005 Form 10-Q filed on April 29,
2005.(9)
    
    Incorporated by reference from the Form 8-K filed on October 7, 2005.(10)
    
    Incorporated by reference from the January 1, 2006 Form 10-Q filed on February
7, 2006.(11)
    
    Incorporated by reference from the December 31, 2006 Form 10-Q filed on
February 1, 2007.(12)
    
    Incorporated by reference from the April 1, 2007 Form 10-Q filed on May 8,
2007.(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