UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 11-K

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

For the year ended December 31, 2006

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

For the transition period from ___ to ___

Commission File Number: 0-2816

A.

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

Methode Electronics, Inc. 401(k) Savings Plan

B.

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

Methode Electronics, Inc.
7401 West Wilson Avenue
Chicago, IL 60706-4548

 

 

Financial Statements and
supplemental schedule

Methode Electronics, Inc. 401(k) Savings Plan

Years Ended December 31, 2006 and 2005

Methode Electronics, Inc.
401(k) Savings Plan

Financial Statements and
Supplemental Schedule

Years Ended December 31, 2006 and 2005

Contents

Report of Independent Registered Public Accounting Firms			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 Schedule
Schedule H, Line 4i – Schedule of Assets (Held at End of Year)			9
Consent

Report of Independent Registered Public Accounting Firm

The Administration Committee
Methode Electronics, Inc.
     401(k) Savings Plan

We have audited the accompanying statements of net assets available for benefits of Methode Electronics, Inc. 401(k) Savings Plan as of December 31, 2006, and 2005, and the related statements of changes in net assets available for benefits for the years then ended. These financial statements are the responsibility of the Plan’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. We were not engaged to perform an audit of the Plan’s internal control over financial reporting. Our audit included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Plan’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the net assets available for benefits of the Plan at December 31, 2006 and 2005, and the changes in net assets available for benefits for the years then ended, in conformity with accounting principles generally accepted in the United States.

Our audits were performed for the purpose of forming an opinion on the financial statements taken as a whole. The accompanying supplemental schedule of assets (held at end of year) as of December 31, 2006, is presented for purposes of additional analysis and is not a required part of the financial statements but is supplementary information required by the Department of Labor’s Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974. This supplemental schedule is the responsibility of the Plan’s management. The supplemental schedule has been subjected to the auditing procedure applied in our audits of the financial statements and, in our opinion, is fairly stated in all material respects in relation to the financial statements taken as a whole.

/s/ Frank L. Sassetti & Co.

June 27, 2007
Oak Park, Illinois

Methode Electronics, Inc.
401(k) Savings Plan

Statements of Net Assets Available for Benefits

		December 31,
		2006				2005
Assets
Cash		$	99,429			$	8,791
Investments, at fair value:
Group annuity contract			3,010,143				3,834,000
Mutual funds			34,800,774				29,548,106
Common stock			3,088,764				3,008,886
Participant loans			1,573,766				1,367,493
Total investments			42,473,447				37,758,485
Receivables:
Unsettled investment sales			20,189				10,617
Accrued interest / dividends			32,093				22,183
Total receivables			52,282				32,800
Total assets			42,625,158				37,800,076
Liabilities
Unsettled investment purchases			98,048				14,414
Total liabilities			98,048				14,414
Net assets available for benefits, at fair value			42,527,110				37,785,662
Adjustment from fair value to contract value for fully benefit-responsive investment contracts			209,365				196,007
Net assets available for benefits		$	42,736,475			$	37,981,669

See accompanying notes.

Methode Electronics, Inc.
401(k) Savings Plan

Statements of Changes in Net Assets Available for Benefits

		Years Ended December 31,
		2006				2005
Additions
Participant contributions		$	2,533,716			$	2,518,327
Company contributions			1,797,390				1,870,426
Rollovers			134,146				563,547
Interest and dividends			2,336,283				1,663,560
Total additions			6,801,535				6,615,860
Deductions
Benefits paid to participants			4,093,228				3,571,239
Total deductions			4,093,228				3,571,239
Net realized and unrealized appreciation (depreciation) in fair value of investments			2,046,499				(363,245	)
Net increase			4,754,806				2,681,376
Net assets available for benefits:
Beginning of year			37,981,669				35,300,293
End of year		$	42,736,475			$	37,981,669

See accompanying notes.

Methode Electronics, Inc.
401(k) Savings Plan

Notes to Financial Statements

Years Ended December 31, 2006 and 2005

1. Description of the Plan

The following description of the Methode Electronics, Inc. 401(k) Savings Plan (Plan) provides only general information. Participants should refer to the Summary Plan Description (SPD) for a more complete description of the Plan’s provisions. Copies of the SPD are available from Methode Electronics, Inc.

General

The Plan is a defined-contribution plan established to provide additional retirement and other benefits for eligible employees, to enable eligible employees, through systematic savings, to accumulate funds on a tax-advantageous basis, and to provide a vehicle through which the plan sponsor, Methode Electronics, Inc. and its subsidiaries (the Company), can attract and retain qualified employees.

Participation

Employees who are employed by the Company for three full calendar months are eligible to participate in the Plan on the first day of the following calendar month.

Contributions

Participants may elect to contribute a minimum of 2% of their pretax annual compensation (as defined in the Plan), up to the maximum annual dollar limit allowable by the Internal Revenue Service (IRS).

The Company contributes to the Plan, on behalf of each participant, 3% of each participant’s eligible compensation (as defined by the Plan), subject to the IRS maximum amount, for the portion of the Plan year in which the employee was a participant in the Plan.

Participants may direct contributions into various investment options offered by the Plan.

Participant Withdrawals

Withdrawals are permitted in the event of termination of employment, disability, death, retirement, attainment of age 59 1/2, or financial hardship. A financial hardship withdrawal is currently permitted by the IRS for certain authorized purposes. Such withdrawals must be approved by the 401(k) Hardship Committee. Withdrawals prior to the attainment of age 59 1/2 may be subject to an additional 10% tax penalty.

Vesting

Participants are immediately vested in Company contributions, their contributions, and actual earnings (losses) thereon.

Methode Electronics, Inc.
401(k) Savings Plan

Notes to Financial Statements (continued)

Loans

Participants may borrow from their fund accounts a minimum of $1,000 up to a maximum equal to the lesser of $50,000 or 50% of their account balance. Loan terms range from 1 to 5 years or up to 15 years for the purchase of a primary residence. The loans are secured by the balance in the participant’s account and bear interest at the prime rate plus 1%. Principal and interest are paid ratably through payroll deductions.

Participant Accounts

Each participant’s account is credited with the participant’s contributions and allocations of Company contributions and Plan earnings (losses). Allocations are based on participant earnings or account balances as defined. The benefit to which a participant is entitled is the benefit that can be provided from the participant’s account.

Plan Termination

Although it has not expressed any intent 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 of the Employee Retirement Income Security Act of 1974.

2. Significant Accounting Policies

Basis of Accounting

The financial statements have been prepared on the accrual basis of accounting.

Valuation of Investments

The group annuity contract fair value and contract value are estimated by Hartford Life Insurance Company. Contract value represents contributions made, plus interest at the contract rate, less funds used to pay participants’ benefits. The Plan does not allow for new investment in this contract. There are significant penalties if the entire contract were prematurely terminated.

The group annuity contract had an average yield of 3.36% and 3.37% (annualized) for the years ended December 31, 2006 and 2005, respectively. The crediting interest rate was 3.14% and 3.0% at December 31, 2006 and 2005, respectively. The crediting interest rate is set at the beginning of the calendar year and is periodically reviewed for adjustment.

The shares of mutual funds are valued at quoted market prices, which represent the net asset values of shares on the last business day of the Plan year. The fair value of common stock is determined by quoted market prices. Participant loans are valued at their outstanding balances, which approximate fair value

Methode Electronics, Inc.
401(k) Savings Plan

Notes to Financial Statements (continued)

Purchases and sales are recorded on a trade-date basis. Interest is recorded on the accrual basis. Dividends are recorded on the ex-dividend date.

Change in accounting principle

In December, 2005, the Financial Accounting Standards Board (“FASB”) issued a Staff Position (“FSP”), Reporting of Fully Benefit-Responsive Investment Contracts Held by Certain Investment Companies Subject to the AICPA Investment Company Guide and Defined Contribution Health and Welfare and Pension Plans. This FSP amends the guidance in AICPA Statement of Position 94-4, Reporting of Investment Contracts Held by Health and Welfare Benefit Plans and Defined-Contribution Pension Plans, with respect to the definition of fully benefit-responsive investment contracts and the presentation and disclosure of fully benefit-responsive investment contracts in plan financial statements. The FSP requires that investments in common/collective trusts that include benefit-responsive investment contracts be presented at fair value in the statement of net assets available for benefits and that the amount representing the difference between fair value and contract value of these investments also be presented on the face of the statement of net assets available for benefits. The FSP is effective for financial statements for annual periods ending after December 15, 2006 and must be applied retroactively to all prior periods presented. Accordingly, the Plan has adopted the financial statement presentation and disclosure requirements effective December 31, 2006, and has restated the 2005 Statement of Net Assets Available for Benefits to present all investments at fair value, with the adjustment to contract value separately disclosed. The effect of adopting the FSP had no impact on the Plan’s net assets available for benefits or changes in net assets available for benefits, as such investments have historically been presented at contract value.

Use of Estimates

The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates.

Risks and Uncertainties

The Plan invests in various investment securities. Investment securities are exposed to various risks such as interest rate, market, and credit risks. Due to the level of risk associated with certain investment securities, it is at least reasonably possible that changes in the values of investment securities will occur in the near term and that such changes could materially affect participants’ account balances and the amounts reported in the statements of net assets available for benefits.

Administrative Expenses

Generally, expenses of the Plan are paid by the Company.

Methode Electronics, Inc.
401(k) Savings Plan

Notes to Financial Statements (continued)

3. Investments

The Plan’s investments (including investments purchased, sold, as well as held during the year) appreciated / depreciated in fair value as determined by quoted market prices as follows:

		Years Ended December 31
		2006				2005
Mutual funds		$	1,683,610			$	429,189
Common stock			362,889				(792,434	)
		$	2,046,499			$	(363,245	)

Investments that represent 5% or more of the Plan’s net assets are as follows:

		December 31,
		2006				2005
Hartford Life Insurance Company Group Annuity Contract		$	3,010,143			$	3,834,000
Lincoln Stable Value Fund			2,366,967				—
American Funds
American Balanced Fund			9,479,482				10,184,920
American Mutual Fund			4,841,719				3,771,106
American Growth Fund of America			6,051,266				6,167,503
Euro Pacific Fund			3,100,188				—
Davis NY Venture Fund			4,502,554				—
Methode Electronics, Inc. Common Stock Fund			2,932,212				2,846,315

Methode Electronics, Inc.
401(k) Savings Plan

Notes to Financial Statements (continued)

4. Income Tax Status

The Plan has received a determination letter from the IRS dated September 11, 2002, stating that the Plan is qualified under Section 401(a) of the Internal Revenue Code (the Code) and, therefore, the related trust is exempt from taxation. Subsequent to this determination by the IRS, the Plan was amended. Once qualified, the Plan is required to operate in conformity with the Code to maintain its qualification. The plan administrator believes the Plan is being operated in compliance with the applicable requirements of the Code and, therefore, believes that the Plan is qualified and the related trust is tax-exempt.

5. Subsequent Event

Effective January 12, 2007, Stratos International, Inc. common stock was no longer a Methode Electronics, Inc. 401(k) Savings Plan Investment Option.

6. Reconciliation of Financial Statements to Form 5500

The following is a reconciliation of investments at fair value per the financial statements to the Form 5500 at December 31,

		2006				2005
Investments, at fair value, per the financial statements		$	42,473,447			$	37,758,485
Adjustment from fair value to contract value for investments in fully benefit-responsive insurance contracts			209,365				196,007
Investments, per Form 5500		$	42,682,812			$	37,954,492

Methode Electronics, Inc.
401(k) Savings Plan

Shares

Description of

or

Current

Identity of Issue

Investment

Units

Cost

Value

Annuity contract

Hartford Life Insurance Company

Group Annuity Contract

3,219,508

*

*

$

3,010,143

Mutual funds

Lincoln Financial Group

Lincoln Stable Value Fund

2,366,967

*

*

2,366,967

The American Funds Group

American Balanced Fund

498,395

*

*

9,479,482

American Mutual Fund

165,756

*

*

4,841,719

Europacific Growth Fund

66,585

*

*

3,100,188

Growth Fund of America

184,097

*

*

6,051,266

New Economy Fund

59,855

*

*

1,598,128

Delaware Investments

Delaware Diversified Income

127,193

*

*

1,114,207

Delaware Select Growth

32,571

*

*

873,889

AIM Investments

Aim Capital Development

47,360

*

*

872,374

Davis Funds

Davis NY Venture

4,289,915

*

*

4,502,554

34,800,774

Common stock

Stratos Lightwave, Inc.

Stratos Lightwave, Inc. Common Stock

20,599

*

*

156,552

Methode Electronics, Inc.*

Methode Electronics, Inc. Common Stock

270,749

*

*

2,932,212

3,088,764

Total investments at fair value

40,899,681

Adjustment from fair value to contract value for fully responsive investment contracts

209,365

Total investments, as adjusted

41,109,046

Participant loans

Interest rates range from

5.0% to 10.5%

*

*

1,573,766

$

42,682,812

SIGNATURE

Pursuant to the requirements of the Securities and Exchange Act of 1934, the Plan Administrator has duly caused this annual report to be signed on its behalf by the undersigned hereunto duly authorized.