United States Securities and Exchange Commission Washington, D.C. 20549 FORM 11-K (Mark one) [X] ANNUAL REPORT PURSUANT TO SECTION 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2006 OR [ ] TRANSITION REPORT PURSUANT TO SECTION 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _______________ to _______________ Commission file number 1-12981 SOLIDSTATE CONTROLS, INC. HOURLY EMPLOYEES' (CWA) RETIREMENT PLAN (Full title of the plan) AMETEK, INC. 37 NORTH VALLEY ROAD, BUILDING 4, P.O. BOX 1764 PAOLI, PENNSYLVANIA 19301-0801 (Name of issuer of the securities held pursuant to the plan and the address of its principal executive office) Solidstate Controls, Inc. Hourly Employees' (CWA) Retirement Plan Financial Statements and Supplemental Schedule Years ended December 31, 2006 and 2005 CONTENTS Financial Statements (Unaudited): Statements of Assets Available for Benefits............................. 2 Statements of Changes in Assets Available for Benefits.................. 3 Notes to Financial Statements........................................... 4 Supplemental Schedule: Schedule H, Line 4i - Schedule of Assets (Held at End of Year).......... 12 Signatures................................................................. 13 1 Solidstate Controls, Inc. Hourly Employees' (CWA) Retirement Plan Statements of Assets Available for Benefits December 31, 2006 and 2005 (Unaudited) DECEMBER 31, ----------------------- 2006 2005 ---------- ---------- ASSETS: Investments, at fair value $1,329,667 $1,072,146 ---------- ---------- Receivables: Employer contributions 80,863 77,904 Participants contributions 4,982 6,135 ---------- ---------- Total receivables 85,845 84,039 ---------- ---------- Assets available for benefits, at fair value 1,415,512 1,156,185 Adjustment from fair value to contract value for Common Collective Trust 2,197 2,709 ---------- ---------- Assets available for benefits $1,417,709 $1,158,894 ========== ========== See accompanying notes. 2 Solidstate Controls, Inc. Hourly Employees' (CWA) Retirement Plan Statements of Changes in Assets Available for Benefits Years ended December 31, 2006 and 2005 (Unaudited) YEARS ENDED DECEMBER 31, ----------------------- 2006 2005 ---------- ---------- ADDITIONS: Contributions: Employer $ 81,793 $ 79,048 Participants 62,459 63,285 Participant rollovers and transfers from other plans 1,825 -- ---------- ---------- 146,077 142,333 ---------- ---------- Investment income: Net appreciation in fair value of investments 78,141 43,689 Interest and dividend income 47,502 31,617 ---------- ---------- 125,643 75,306 ---------- ---------- Total additions 271,720 217,639 ---------- ---------- DEDUCTIONS: Benefits paid to participants (12,905) (44,498) ---------- ---------- Total deductions (12,905) (44,498) ---------- ---------- Net increase 258,815 173,141 Assets available for benefits: Beginning of year 1,158,894 985,753 ---------- ---------- End of year $1,417,709 $1,158,894 ========== ========== See accompanying notes. 3 Solidstate Controls, Inc. Hourly Employees' (CWA) Retirement Plan Notes to Financial Statements December 31, 2006 (Unaudited) 1. DESCRIPTION OF PLAN GENERAL The following brief description of the Plan provides only summarized information. Participants should refer to the Plan document for a more complete description of the Plan's provisions. The Plan is a tax-deferred 401(k) defined contribution savings plan which provides eligible employees (whose employment is governed by the terms of a collective bargaining agreement with the Communications Workers of America (CWA)) of Solidstate Controls, Inc., an opportunity to invest a portion of their compensation, as defined by the Plan, in one or a combination of investment programs (see Note 3). CONTRIBUTIONS Each year, participants have an opportunity to invest up to 16% (maximum 6% before tax and maximum 10% after tax) of their annual compensation, as defined by the Plan, in multiples of one percent, except for certain highly compensated participants who may be subject to certain regulatory limitations. Participants may also contribute amounts representing rollovers from other qualified plans. The Plan provides for Company contributions equal to 40% of the amount contributed by each participant, up to a maximum percentage ranging from 1% to 6% of the participants' compensation as determined by the terms of the collective bargaining agreement. Retirement and matching company contributions are paid to the Plan at anytime prior to the due date prescribed by law for filing the Company's federal income tax return for that Plan year. The Plan has a retirement feature for eligible participants, AMETEK makes contributions to the Plan on behalf of such participants at a rate $0.35 for each hour that an active participants is paid compensation. Participant contributions under the retirement feature of the Plan are not permitted. Investment programs and transfer and exchange privileges available under the retirement feature of the Plan are the same as the savings feature under the Plan. Forfeited Company contributions, which are insignificant in amount, are used to reduce future employer retirement contributions or to pay Plan administration expenses. 4 Solidstate Controls, Inc. Hourly Employees' (CWA) Retirement Plan Notes to Financial Statements December 31, 2006 (Unaudited) 1. DESCRIPTION OF PLAN (CONTINUED) Participant Accounts Each participant's account is credited with the participant's contributions and allocations of (a) the Company's contributions and (b) Plan net earnings. Allocations are based on participant earnings and/or account balances, as defined. The benefit to which a participant is entitled is the balance in the participant's vested account. VESTING Participants are fully vested at all times in their contributions to the Plan. Company contributions under the savings provisions of the Plan and under the retirement feature of the Plan through December 31, 2006 become fully vested after five years of service. Effective January 1, 2007, employer retirement feature contributions and earnings contributed on or after January 1, 2007, will become fully vested after three years of service. PARTICIPANT LOANS Participants may borrow a minimum of $1,000 or up to a maximum equal to the lesser of $50,000 or 50% of their account balance. Participants may have up to two loans outstanding at any time, although only one loan may be for a primary residence, the sum of which may not exceed the maximum allowable under the Plan. Repayment terms of the loans are generally limited to no longer than 60 months from inception or for a reasonable period of time in excess of 60 months for the purchase of a principal residence, as fixed by the Plan's Administrative Committee. The loans are secured by the balance in the participant's account, and bear interest at rates established by the Plan's administrative committee, which approximate rates charged by commercial lending institutions for comparable loans. Interest rates on loans outstanding at December 31, 2006 ranged between 5% and 9.25%. Principal and interest is paid ratably through payroll deductions. Participant loans outstanding at December 31, 2006 and 2005, respectively, totaled $106,142 and $117,915 are included in investments in the accompanying statements of assets available for benefits. 5 Solidstate Controls, Inc. Hourly Employees' (CWA) Retirement Plan Notes to Financial Statements December 31, 2006 (Unaudited) 1. DESCRIPTION OF PLAN (CONTINUED) PAYMENT OF BENEFITS On termination of service, death, disability or retirement, a participant may receive a lump-sum amount equal to his or her vested account, elect to receive payment in installments for life, subject to certain restrictions based on life expectancy or direct rollover to an eligible retirement plan. When a participant attains age 59 1/2 while still an employee, he or she can elect to withdraw a specified portion of his or her vested account balance without incurring an income tax penalty. Also, in certain cases of financial hardship, a participant may elect to withdraw up to a specified portion of his or her vested account balance, regardless of age. PLAN TERMINATION The Plan is subject to the provisions of the Employee Retirement Income Security Act of 1974 ("ERISA"). While the Company has not expressed any intent to terminate the Plan, it is free to do so at any time subject to the provisions of ERISA, and applicable labor agreements. In the event of Plan termination, each participant will receive the value of his or her separate vested account. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES BASIS OF FINANCIAL STATEMENTS AND PRESENTATION FORMAT The accompanying financial statements are unaudited because the number of participants in the Plan are fewer than the number of participants which would require audited financial statements under ERISA. The accompanying financial statements have been prepared on the accrual basis of accounting, in accordance with U.S. generally accepted accounting principles. 6 Solidstate Controls, Inc. Hourly Employees' (CWA) Retirement Plan Notes to Financial Statements December 31, 2006 (Unaudited) 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 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 amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates and assumptions. 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. INVESTMENT VALUATION AND INCOME RECOGNITION Investments in shares of registered investment companies are valued at quoted market prices, which represent the net asset values of shares held by the Plan at year-end. Money market and short-term investments are carried at the fair value established by the issuer and/or the trustee. The participant loans are valued at their outstanding book values, which approximates fair value. The Vanguard Retirement Savings Trust is a common collective trust ("CCT") fund which invests in fully benefit-responsive investment contracts. The fair value of the participation units in the CCT is based on quoted redemption values on the last business day of the plan year. The fair value of the CCT is adjusted to contract value in accordance with the FSP described in Note 8. Contract value represents contributions made plus interest accrued at the contract value, less withdrawals. Purchases and sales of investments are reflected on trade dates. Realized gains and losses on sales of investments are based on the average cost of such investments. Interest income is recorded on the accrual basis. Dividend income is recorded on the ex-dividend date. Income from other investments is recorded as earned. The net appreciation of investments represents the sum of the change in the difference between year-end market value and cost of investments, and the difference between the proceeds received and the cost of investments sold during the year. 7 Solidstate Controls, Inc. Hourly Employees' (CWA) Retirement Plan Notes to Financial Statements December 31, 2006 (Unaudited) 3. INVESTMENT PROGRAMS At December 31, 2006 and 2005, the Vanguard Fiduciary Trust Company was the Trustee and a party-in-interest to the Plan. A participant may direct contributions (up to certain specified limits) in any of the following investment options. - AMETEK Stock Fund - Vanguard Retirement Savings Trust - Registered investment companies: - Vanguard Total Bond Market Index Fund - Vanguard LifeStrategy Funds - Vanguard Wellington Fund - Vanguard Windsor II Fund - Vanguard PRIMECAP Fund - Vanguard Small-Cap Index Fund - Vanguard 500 Index Fund - Evergreen Small Cap Fund - Julius Baer International Equity Fund - BlackRock Small Cap Fund Participants may change their investment options or transfer existing account balances to other investment options daily. 8 Solidstate Controls, Inc. Hourly Employees' (CWA) Retirement Plan Notes to Financial Statements December 31, 2006 (Unaudited) 3. INVESTMENT PROGRAMS (CONTINUED) The fair value of individual investments that represent 5% or more of the Plan's assets at year-end are as follows: DECEMBER 31, ------------------- 2006 2005 -------- -------- Vanguard Retirement Savings Trust (stated at contract value) $231,278 $208,421 AMETEK Stock Fund 220,055 203,779 Vanguard 500 Index Fund 156,174 97,414 Vanguard Total Bond Market Index Fund 139,853 128,293 Loan Fund 106,142 117,915 Vanguard Wellington Fund 100,023 66,600 Vanguard LifeStrategy Growth Fund 72,939 59,898 During 2006 and 2005 the Plan's investments (including gains and losses on investments bought, sold, as well as held during the year) appreciated in value as follows: DECEMBER 31, ----------------- 2006 2005 ------- ------- Common stock $27,420 $32,300 Registered investment companies 50,721 11,389 ------- ------- $78,141 $43,689 ======= ======= 9 Solidstate Controls, Inc. Hourly Employees' (CWA) Retirement Plan Notes to Financial Statements December 31, 2006 (Unaudited) 4. INCOME TAX STATUS The Plan has received a determination letter from the Internal Revenue Service dated November 1, 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 Internal Revenue Service, the Plan was amended and restated. Once qualified, the Plan is required to operate in conformity with the Code to maintain its qualification.. The Plan sponsor will take all steps necessary, if any, to maintain the Plan's qualified status. 5. ADMINISTRATIVE EXPENSES The expenses of administering the Plan are payable from the trust funds, unless the Company elects to pay such expenses. At present, the Company has elected to pay such expenses directly. 6. DIFFERENCES BETWEEN FINANCIAL STATEMENTS AND FORM 5500 The following is a reconciliation of assets available for benefits per the financial statements to the Plan's Form 5500: DECEMBER 31, ----------------------- 2006 2005 ---------- ---------- Assets available for benefits per the financial statements $1,417,709 $1,158,894 Adjustment from contract value to fair value for Common Collective Trust (2,197) -- ---------- ---------- Assets available for benefits per Form 5500 $1,415,512 $1,158,894 ========== ========== 10 Solidstate Controls, Inc. Hourly Employees' (CWA) Retirement Plan Notes to Financial Statements December 31, 2006 (Unaudited) 7. PLAN AMENDMENTS Effective January 1, 2007, the Company will match $.50 on each dollar contributed by the employee to the Plan. The match will apply to contributions of up to 6% of the employee's income. Ongoing, the Company will contribute to the Plan as follows: - Effective January 1, 2007, the Company's contribution will be increased by $.05 per hour to $.55 per hour worked - Effective January 1, 2008, the Company's contribution will be increased by $.05 per hour to $.60 per hour worked - Effective January 1, 2009, the Company's contribution will be increased by $.05 per hour to $.65 per hour worked 8. RECENT ACCOUNTING PRONOUNCEMENTS In December 2005, the Financial Accounting Standards Board (FASB) issued Staff Position AAG INV-1 and SOP 94-4-1, 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 (the FSP). The FSP defines the circumstances in which an investment contract is considered fully benefit responsive and provides certain reporting and disclosure requirements for fully benefit responsive investment contracts in defined contribution health and welfare and pension plans. The financial statement presentation and disclosure provisions of the FSP are effective for financial statements issued for annual periods ending after December 15, 2006 and are required to be applied retroactively to all prior periods presented for comparative purposes. The Plan has adopted the provisions of the FSP at December 31, 2006. As required by the FSP, investments in the accompanying Statements of Assets Available for Benefits include fully benefit responsive investment contracts recognized at fair value. AICPA Statement of Position 94-4-1, Reporting of Investment Contracts Held by Health and Welfare Benefit Plans and Defined Contribution Pension Plans, as amended, requires fully benefit responsive investment contracts to be reported at fair value in the Plan's Statement of Assets Available for Benefits with a corresponding adjustment to reflect these investments at contract value. The requirements of the FSP have been applied retroactively to the Statement of Assets Available for Benefits as of December 31, 2005 presented for comparative purposes. Adoption of the FSP had no effect on the Statement of Changes in Assets Available for Benefits for any period presented. 11 Solidstate Controls, Inc. Hourly Employees' (CWA) Retirement Plan EIN 31-0648695 Plan # 050 Schedule H, Line 4i Schedule of Assets (Held at end of Year) December 31, 2006 (Unaudited) Description of investment, including Identity of issue, borrower, lessor maturity date, rate of interest, Current or similar party collateral, par, or maturity value Value ----------------------------------- ------------------------------------ ---------- AMETEK Stock Fund* Common Stock Fund $ 220,055 Vanguard Retirement Savings Trust* Common/Collective Trust 229,081 Vanguard Total Bond Market Index Fund* Registered Investment Company 139,853 Vanguard LifeStrategy Conservative Growth Fund* Registered Investment Company 48,263 Vanguard LifeStrategy Growth Fund* Registered Investment Company 72,939 Vanguard LifeStrategy Moderate Growth Fund* Registered Investment Company 61,760 Vanguard Wellington Fund* Registered Investment Company 100,023 Vanguard Windsor II Fund* Registered Investment Company 26,986 Vanguard PRIMECAP Fund* Registered Investment Company 59,302 Vanguard Small-Cap Index Fund* Registered Investment Company 38,560 Vanguard 500 Index Fund* Registered Investment Company 156,174 Evergreen Small Cap Value Fund Registered Investment Company 5,076 Julius Baer International Equity Fund Registered Investment Company 49,367 BlackRock Small Cap Fund Registered Investment Company 16,086 Loan Fund* Interest rates ranging from 5.0% to 9.25% 106,142 ---------- $1,329,667 ========== ---------------- * Indicates party-in-interest to the Plan. Historical cost column is not included as all investments are participant-directed. 12 SIGNATURES THE PLAN. Pursuant to the requirements of the Securities Exchange Act of 1934, the Members of the Administrative Committee have duly caused this annual report to be signed on its behalf by the undersigned hereunto duly authorized. Solidstate Controls, Inc. Hourly Employees'(CWA) Retirement Plan (Name of Plan) Dated: June 25, 2007 By: /s/ John J. Molinelli ------------------------------------ John J. Molinelli, Member, Administrative Committee 13