FY04 Non-Qualified 11k
 
 
Table of Contents
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549



FORM 11-K




ANNUAL REPORT
Pursuant to Section 15(d) of the Securities Exchange Act of 1934
For The Year Ended December 31, 2004

Commission file number: 1-10431





AVX NONQUALIFIED
SUPPLEMENTAL RETIREMENT PLAN


 



IRS Employer Identification Number: 33-0379007




AVX CORPORATION
P.O. Box 867
Myrtle Beach, SC 29578


 

SUPPLEMENTAL RETIREMENT PLAN
INDEX



 
Page No.
   
2
   
3-4
   
5-7
   
8-11
   
12
   
13
   
Exhibit:
  
14





 











 


-1-









Report of Independent Registered Public Accounting Firm

To the Participants and Administrator of
AVX Nonqualified Supplemental Retirement Plan

In our opinion, the accompanying statements of financial condition with fund information and the related statements of income and changes in plan equity with fund information present fairly, in all material respects, the financial condition of AVX Nonqualified Supplemental Retirement Plan (the “Plan”) at December 31, 2004 and 2003, and the changes in the income and plan equity for each of the three years in the period ended December 31, 2004 in conformity with accounting principles generally accepted in the United States of America. 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 of these statements 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. An audit 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 audits provide a reasonable basis for our opinion.

Our audits were conducted for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental schedule of investments is presented for the purpose of additional analysis and is not a required part of the basic financial statements. This supplemental schedule is the responsibility of the Plan's management. The supplemental schedule has been subjected to the auditing procedures applied in the audits of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole.



/s/PricewaterhouseCoopers LLP
Atlanta, Georgia
March 31, 2005
-2-
AVX NONQUALIFIED SUPPLEMENTAL RETIREMENT PLAN
STATEMENT OF FINANCIAL CONDITION WITH FUND INFORMATION
As of December 31, 2004


 
Total
 
AVX Stock Fund
  
Kyocera Stock Fund
  
Seligman Equity Value Portfolio
  
T Rowe Price Spectrum Income Fund
  
Vanguard Treasury Money Market Fund
  
Templeton Foreign Equity Fund
  
Vanguard 500 Index Fund
  
Janus Balanced Fund
  
Janus Fund
  
Lord Abbett Mid Cap Value Fund
  
PIMCO Total Return Fund
ASSETS:
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
        
Investments at fair value:
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
        
Other investments (cost $1,879,199)
$1,990,441
 
$2,350
 
$14
 
$407,906
 
$333,344
 
$170,422
 
$245,885
 
$163,384
 
$100,063
 
$83,296
 
$330,587
 
$153,190
AVX Corporation Common Stock (cost $558,969)
473,206
  
473,206
  
---
  
---
  
---
  
---
  
---
  
---
  
---
  
---
  
---
  
---
Kyocera Corporation American Depositary Shares (cost $171,124)
189,140
  
---
  
189,140
  
---
  
---
  
---
  
---
  
---
  
---
  
---
  
---
  
---
Total investments
2,652,787
  
475,556
  
189,154
  
407,906
  
333,344
  
170,422
  
245,885
  
163,384
  
100,063
  
83,296
  
330,587
  
153,190
                                               
Receivable:
    
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
Employer contribution
27,388
  
2,874
  
3,915
  
2,076
  
---
  
6,206
  
614
  
3,411
  
3,226
  
812
  
391
  
3,863
                                               
Plan equity
$2,680,175
 
$478,430
 
$193,069
 
$409,982
 
$333,344
 
$176,628
 
$246,499
 
$166,795
 
$103,289
 
$84,108
 
$330,978
 
$157,053
 
 
 
 
 
 
 
 
 
 

The accompanying notes are an integral part of the financial statements.

-3-
AVX NONQUALIFIED SUPPLEMENTAL RETIREMENT PLAN
STATEMENT OF FINANCIAL CONDITION WITH FUND INFORMATION
As of December 31, 2003


 
Total
 
AVX Stock Fund
  
Kyocera Stock Fund
  
Seligman Equity Value Portfolio
  
T Rowe Price Spectrum Income Fund
  
Vanguard Treasury Money Market Fund
  
Templeton Foreign Equity Fund
  
Vanguard 500 Index Fund
  
Janus Balanced Fund
  
Janus Fund
  
MFS Emerging Growth Fund
  
Lord Abbett Mid Cap Value Fund
  
PIMCO Total Return Fund
ASSETS:
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
        
Investments at fair value:
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
        
Other investments (cost $2,238,745)
$1,951,370
 
$4,463
 
$660
 
$383,766
 
$308,478
 
$188,857
 
$219,058
 
$189,541
 
$94,574
 
$375,547
 
$9,566
 
$42,296
 
$134,564
AVX Corporation Common Stock (cost $591,238)
691,076
 
691,076
 
---
  
---
  
---
  
---
  
---
  
---
  
---
  
---
  
---
  
---
  
---
Kyocera Corporation American Depositary Shares (cost $156,875)
152,693
 
---
  
152,693
 
---
  
---
  
---
  
---
  
---
  
---
  
---
  
---
---
  
---
Total investments
2,795,139
 
695,539
 
153,353
 
383,766
 
308,478
 
188,857
 
219,058
 
189,541
 
94,574
 
375,547
 
9,566
 
42,296
 
134,564
                                                   
Receivable:
    
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
Employer contribution
30,167
 
2,958
 
4,028
 
2,535
 
---
  
6,888
 
1,228
 
3,631
 
3,831
 
734
 
---
  
670
 
3,664
                                                   
Plan equity
$2,825,306
 
$698,497
 
$157,381
 
$386,301
 
$308,478
 
$195,745
 
$220,286
 
$193,172
 
$98,405
 
$376,281
 
$9,566
 
$42,966
 
$138,228
 
 
 
 
 
 
 
 
 
 
 
 
The accompanying notes are an integral part of the financial statements.
 

-4-
STATEMENT OF INCOME AND CHANGES IN PLAN EQUITY WITH FUND INFORMATION
For the year ended December 31, 2004



 
 
Total
 
AVX StockFund
  
Kyocera StockFund
  
Seligman Equity Value Portfolio
  
T Rowe Price Spectrum Income Fund
  
Vanguard Treasury Money Market Fund
  
Templeton Foreign Equity Fund
  
Vanguard 500 Index Fund
  
Janus Balanced Fund
  
Janus Fund
  
MFS Emerging Growth Fund
  
Lord Abbett Mid Cap Value Fund
  
PIMCO Total Return Fund
Net investment income (loss):
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
 
Dividends
$37,777
 
$6,109
 
$1,271
 
$2,091
 
$13,140
 
$ ---
 
$5,218
 
$3,463
 
$2,006
 
$ ---
 
$53
 
$958
 
$3,468
 
Interest
2,148
 
---
 
---
 
---
 
---
 
2,148
 
---
 
---
 
---
 
---
 
---
 
---
 
---
 
Net appreciation (depreciation) in  fair value of investments
(21,223)
  
(201,338)
  
22,224
 
58,274
 
11,726
 
(309)
  
33,193
 
12,793
 
5,995
 
448
 
474
 
31,406
 
3,891
 
Total income (loss)
18,702
 
(195,229)
  
23,495
 
60,365
 
24,866
 
1,839
 
38,411
 
16,256
 
8,001
 
448
 
527
 
32,364
 
7,359
                                                     
Contributions:
                                                  
 
Employer
113,632
 
26,098
 
12,310
 
13,243
 
---
 
20,377
 
3,330
 
11,110
 
11,329
 
2,396
 
---
 
1,973
 
11,466
 
Employee
8,756
 
8,756
 
---
 
---
 
---
 
---
 
---
 
---
 
---
 
---
 
---
 
---
 
---
 
Total contributions
122,388
 
34,854
 
12,310
 
13,243
 
---
 
20,377
 
3,330
 
11,110
 
11,329
 
2,396
 
---
 
1,973
 
11,466
                                                     
Deductions:
    
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
 
Benefit payments
(286,221)
  
(59,692)
  
(155)
  
(13,106)
  
---
 
(41,333)
  
(16,409)
  
(53,743)
  
(14,446)
  
(78,393)
  
---
 
(8,944)
  
---
Income (loss) and change in plan equity
(145,131)
  
(220,067)
  
35,650
 
60,502
 
24,866
 
(19,117)
  
25,332
 
(26,377)
  
4,884
 
(75,549)
  
527
 
25,393
 
18,825
                                                     
Transfer of funds from employee investment elections, net
---
 
---
 
---
 
(36,783)
  
---
 
---
 
881
 
---
 
---
 
(216,624)
  
(10,093)
  
262,619
 
---
                                                     
Plan equity at beginning of year
2,825,306
 
698,497
 
157,381
 
386,301
 
308,478
 
195,745
 
220,286
 
193,172
 
98,405
 
376,281
 
9,566
 
42,966
 
138,228
                                                     
Plan equity at end of year
$2,680,175
 
$478,430
 
$193,031
 
$410,020
 
$333,344
 
$176,628
 
$246,499
 
$166,795
 
$103,289
 
$84,108
 
$ ---   
  
$330,978
 
$157,053

 
 
 
 
 
 
 
 
 
 
The accompanying notes are an integral part of the financial statements.
 
 
-5-
AVX NONQUALIFIED SUPPLEMENTAL RETIREMENT PLAN
STATEMENT OF INCOME AND CHANGES IN PLAN EQUITY WITH FUND INFORMATION
For the year ended December 31, 2003


 
 
Total
 
AVX StockFund
  
Kyocera StockFund
  
Seligman Equity Value Portfolio
  
T Rowe Price Spectrum Income Fund
  
Vanguard Treasury Money Market Fund
  
Templeton Foreign Equity Fund
  
Vanguard 500 Index Fund
  
Janus Balanced Fund
  
Janus Fund
  
MFS Emerging Growth Fund
  
Lord Abbett Mid Cap Value Fund
  
PIMCO Total Return Fund
Net investment income (loss):
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
 
Dividends
$35,684
 
$6,602
 
$1,064
 
$619
 
$17,607
 
$ ---
 
$4,384
 
$2,920
 
$1,737
 
$ ---
 
$113
 
$180
 
$458
 
Interest
1,780
 
---
 
---
 
---
 
---
 
1,780
 
---
 
---
 
---
 
---
 
---
 
---
 
---
 
Net appreciation (depreciation) in fair value of investments
681,405
 
293,591
 
23,106
 
105,357
 
36,382
 
---
 
47,476
 
45,456
 
9,766
 
105,267
 
10,063
 
4,038
 
903
 
Total income (loss)
718,869
 
300,193
 
24,170
 
105,976
 
53,989
 
1,780
 
51,860
 
48,376
 
11,503
 
105,267
 
10,176
 
4,218
 
1,361
                                                     
Contributions:
                                                  
 
Employer
48,552
 
21,342
 
4,028
 
2,535
 
---
 
6,889
 
1,228
 
3,631
 
3,831
 
734
 
---
 
670
 
3,664
 
Employee
13,172
 
13,172
 
---
 
---
 
---
 
---
 
---
 
---
 
---
 
---
 
---
 
---
 
---
 
Total contributions
61,724
 
34,514
 
4,028
 
2,535
 
---
 
6,889
 
1,228
 
3,631
 
3,831
 
734
 
---
 
670
 
3,664
                                                     
Deductions:
    
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
 
Benefit payments
(226,703)
  
(63,567)
  
(29)
  
(10,034)
  
---
 
(40,386)
  
---
 
(42,681)
  
---
 
(70,006)
  
---
 
---
 
---
Income (loss) and change in plan equity
553,890
 
271,140
 
28,169
 
98,477
 
53,989
 
(31,717)
  
53,088
 
9,326
 
15,334
 
35,995
 
10,176
 
4,888
 
5,025
                                                     
Transfer of funds from employee investment elections, net
---
 
884
 
(160)
  
(518)
  
(132,292)
  
(339)
  
86
 
(824)
  
88
 
(790)
  
(37,416)
  
38,078
 
133,203
                                                     
Plan equity at beginning of year
2,271,416
 
426,473
 
129,372
 
288,342
 
386,781
 
227,801
 
167,112
 
184,670
 
82,983
 
341,076
 
36,806
 
---
 
---
                                                     
Plan equity at end of year
$2,825,306
 
$698,497
 
$157,381
 
$386,301
 
$308,478
 
$195,745
 
$220,286
 
$193,172
 
$98,405
 
$376,281
 
$9,566
 
$42,966
 
$138,228
 
 
 
    
 
 
 
 
 
 
 

The accompanying notes are an integral part of the financial statements.
 

-6-
 AVX NONQUALIFIED SUPPLEMENTAL RETIREMENT PLAN
STATEMENT OF INCOME AND CHANGES IN PLAN EQUITY WITH FUND INFORMATION
For the year ended December 31, 2002

 
 
Total
 
AVX StockFund
  
Kyocera StockFund
  
Seligman Equity Value Portfolio
  
T Rowe Price Spectrum Income Fund
  
Vanguard Treasury Money Market Fund
  
Templeton Foreign Equity Fund
  
Vanguard 500 Index Fund
  
Janus Balanced Fund
  
Janus Fund
  
MFS Emerging Growth Fund
Net investment income (loss):
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
 
Dividends
$39,364
 
$6,483
 
$769
 
$4,731
 
$18,288
 
$ ---
  
$3,448
 
$3,387
 
$2,005
 
$95
 
$158
 
Interest
3,090
 
---
 
---
 
---
 
---
 
3,090
 
---
 
---
 
---
 
---
 
---
 
Net appreciation (depreciation) in fair value of investments
(964,601)
  
(584,773)
  
(21,759)
  
(126,210)
  
5,547
 
---
 
(19,091)
  
(63,607)
  
(7,638)
  
(128,407)
  
(18,663)
 
Total income (loss)
(922,147)
  
(578,290)
  
(20,990)
  
(121,479)
  
23,835
 
3,090
 
(15,643)
  
(60,220)
  
(5,633)
  
(128,312)
  
(18,505)
                                             
Contributions:
                                          
 
Employer
189,727
 
18,307
 
12,259
 
64,869
 
25,256
 
11,362
 
5,225
 
17,624
 
14,749
 
15,176
 
4,900
 
Employee
6,853
 
6,853
 
---
 
---
 
---
 
---
 
---
 
---
 
---
 
---
 
---
 
Total contributions
196,580
 
25,160
 
12,259
 
64,869
 
25,256
 
11,362
 
5,225
 
17,624
 
14,749
 
15,176
 
4,900
                                             
Deductions:
    
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
 
Benefit payments
(129,473)
  
(44,530)
  
(38)
  
(5,240)
  
---
 
(40,409)
  
(3,009)
  
(33,599)
  
---
 
(1,415)
  
(1,233)
Income (loss) and change in plan equity
(855,040)
  
(597,660)
  
(8,769)
  
(61,850)
  
49,091
 
(25,957)
  
(13,427)
  
(76,195)
  
9,116
 
(114,551)
  
(14,838)
                                             
Transfer of funds from employee investment elections, net
---
 
---
 
---
 
---
 
---
 
---
 
---
 
---
 
---
 
---
 
---
                                             
Plan equity at beginning of year
3,126,456
 
1,024,133
 
138,141
 
350,192
 
337,690
 
253,758
 
180,539
 
260,865
 
73,867
 
455,627
 
51,644
                                             
Plan equity at end of year
$2,271,416
 
$426,473
 
$129,372
 
$288,342
 
$386,781
 
$227,801
 
$167,112
 
$184,670
 
$82,983
 
$341,076
 
$36,806
 
 
 
 
 
 
 
 
 
 
 
The accompanying notes are an integral part of the financial statements.
 
-7-
AVX NONQUALIFIED SUPPLEMENTAL RETIREMENT PLAN
NOTES TO FINANCIAL STATEMENTS

1.  
Description of Plan

The following brief description of the AVX Nonqualified Supplemental Retirement Plan (the “Plan”) is provided for general information purposes only. Participants should refer to the Plan document for more complete information.

General
The Plan was established August 1, 1994 to provide certain officers and highly compensated managers of AVX Corporation (the "Company") with supplemental retirement benefits. Any employee eligible to participate in the AVX Corporation Retirement Plan whose annual compensation is in excess of $205,000 (as such limit is defined by the Internal Revenue Code) is eligible to participate in the Plan. An employee who, in prior years, becomes an eligible participant in the Plan shall continue to be eligible to fully participate in the Plan regardless of whether such employee’s annual compensation falls below the annual compensation limit for the year. The Company is the Plan’s sponsor and Plan administrator. HSBC Bank USA (the "Trustee") is the Plan’s trustee and record keeper.

Deferred Compensation Contribution
The Plan allows participants to defer an amount from 1% to 3% of eligible compensation (currently between $205,000 and $600,000). Beginning January 1, 2001, eligible compensation for employee contributions is determined based on total compensation less any amount deferred under the AVX Corporation SERP Plan. A matching contribution of 100% is made by AVX Corporation. Compensation deferred by a participant and the matching contribution made by the Company shall be invested in the AVX Stock Fund.
 
Non-discretionary Contribution
The Company will make an annual contribution equal to 5% of eligible compensation.
 
Discretionary Contribution
The Company may make an annual contribution between 0% - 5% of eligible compensation. The contribution amount is subject to approval by the Company’s Board of Directors.

Vesting
Each participant shall be fully vested and have a non-forfeitable interest in his account.

Payment of Benefits
Benefits under the Plan shall be payable to a participant or beneficiary upon the earlier of such participant's termination of employment or death in a lump-sum payment or in installments over a period not to exceed 10 years.

2.  
Significant Accounting Policies

Basis of Accounting
The financial statements of the Plan are presented on the accrual basis of accounting.

Contributions
Employer contributions under the non-discretionary contribution feature include amounts equal to the aggregate that would have been contributed based on a participant’s eligible compensation under the non-discretionary contribution feature of the AVX Retirement Plan. The employer contributions associated with the discretionary contribution feature of the Plan are not readily determinable until after the Company’s fiscal year ended March 31 and are included in the Plan in the year paid.

Payment of Benefits
Benefits are recorded when paid.

-8-
AVX NONQUALIFIED SUPPLEMENTAL RETIREMENT PLAN
NOTES TO FINANCIAL STATEMENTS (CONTINUED)

Investment Valuation and Income Recognition
Investments in securities traded on a national securities exchange are valued at the closing sales price on the last business day of the plan year. Temporary cash investments in money market funds are valued at par, which represents market value as determined by the Trustee. For purposes of determining realized gains and losses, the Plan uses the average cost method to determine the cost basis of disposed assets.
 
Administrative Expenses
Administrative expenses of the Plan are paid by the Company.

Use of Estimates
The preparation of the Plan’s financial statements in conformity with generally accepted accounting principles requires the plan administrator to make significant estimates and assumptions that affect the reported amounts of plan equity at the date of the financial statements and the changes of plan equity during the reporting period and, when applicable, disclosures of contingent assets and liabilities at the date of the financial statements. Actual results could differ from those estimates.

3.  
Investment Programs

As of December 31, 2004, the investment alternatives include the following:
 
Vanguard Treasury Money Market Fund: The Vanguard Treasury Money Market Fund seeks the maximum current income consistent with preservation of capital and liquidity by investing in U.S. Treasury obligations and repurchase agreements relating to U.S. Treasury obligations. This fund had nine participants at December 31, 2004 and seven participants at December 31, 2003.

T.Rowe Price Spectrum Income Fund: The T.Rowe Price Spectrum Income Fund seeks a high level of current income consistent with moderate share price fluctuation by investing primarily in domestic bond funds and also in a foreign bond fund. This fund had four participants at December 31, 2004 and 2003. This fund is no longer an investment alternative for future contributions.

Seligman Equity Value Portfolio: The Seligman Equity Value Portfolio seeks capital appreciation through a value-oriented, diversified portfolio comprised of high-quality stocks. This fund had ten participants at December 31, 2004 and twelve participants at December 31, 2003.

Kyocera Stock Fund: This fund is invested exclusively in shares of the Kyocera Corporation. The objective is to give participants the opportunity to share in the success and growth of Kyocera and AVX by allowing participants to become part owners. The fund’s value will fluctuate, based on the success of Kyocera, AVX and the stock market in general. This fund had four participants at December 31, 2004 and three participants at December 31, 2003.

Templeton Foreign Equity Fund: The Templeton Foreign Fund seeks long-term capital growth by investing in stocks and debt obligations of companies and governments outside the United States. This fund had nine participants at December 31, 2004 and 2003.

AVX Stock Fund: This fund is invested exclusively in shares of AVX stock. This fund also gives participants the opportunity to share in the success and growth of AVX. The fund’s value will fluctuate, based on the success of AVX and the stock market in general. This fund had fifteen participants at December 31, 2004 and sixteen participants at December 31, 2003.
-9-
AVX NONQUALIFIED SUPPLEMENTAL RETIREMENT PLAN
NOTES TO FINANCIAL STATEMENTS (CONTINUED)

Janus Balanced Fund: The Janus Balanced Fund seeks long-term growth of capital balanced by current income by normally investing 40% to 60% of assets in securities selected for their growth potential and 40% to 60% of assets in securities selected for their income potential. This fund had seven participants at December 31, 2004 and six participants at December 31, 2003.
 
Janus Fund: The Janus Fund seeks long-term growth of capital, consistent with preservation of capital, by investing primarily in common stock of companies of any size. This fund had seven participants at December 31, 2004 and eight participants at December 31, 2003.

Vanguard 500 Index Fund: The Vanguard 500 Index Fund seeks to track, as close as possible, the investment performance of the S&P 500 Index by investing in each of the index’s 500 stocks according to each stock’s weighting in the index. This fund had nine participants at December 31, 2004 and 2003.

MFS Emerging Growth Fund: The MFS Emerging Growth Fund seeks above-average long-term capital growth by investing in common stocks of small to mid-size companies. This fund had no participants at December 31, 2004 and five participants at December 31, 2003. This fund is no longer an investment alternative for future contributions.

Lord Abbett Mid-Cap Value Fund: The Lord Abbett Mid-Cap Value Fund seeks capital appreciation. Under normal circumstances, the fund invests at least 65% of its total assets in middle capitalization companies having an aggregate market value between $200 million and $5 billion. This fund had six participants at December 31, 2004 and two participants at December 31, 2003.

PIMCO Total Return Fund: The PIMCO Total Return Fund seeks maximum total return by investing primarily in fixed income securities of varying maturities. This fund had three participants at December 31, 2004 and 2003.
 
The Plan's realized losses for the years ended December 31 were as follows:

 
2004
  
2003
  
2002
Proceeds
$ 1,530,197
  
$ 735,624
  
$ 298,077
Aggregate cost
1,786,634
  
838,190
  
318,267
Realized losses
$ (256,437)
  
$ (102,566)
  
$ (20,190)
 
The Plan's unrealized appreciation (depreciation) of investments at December 31 were as follows:

 
2004
  
2003
  
2002
AVX Corporation Common Stock
$(85,763)
  
$ 99,838
  
$(201,052)
Kyocera Corporation ADS
18,016
  
(4,182)
  
(27,323)
Other investments
111,242
  
(287,375)
  
(747,337)
Total unrealized appreciation (depreciation)
$ 43,495
  
$(191,719)
  
$(975,712)
 
Net appreciation (depreciation) in fair value of investments on the Statement of Income and Changes in Plan Equity with Fund Information represents realized losses and the cumulative change in unrealized appreciation (depreciation) for the respective years.
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AVX NONQUALIFIED SUPPLEMENTAL RETIREMENT PLAN
NOTES TO FINANCIAL STATEMENTS (CONTINUED)

4.  
Plan Termination
Although the Company has not expressed any intent to do so, it has the right to terminate the Plan at any time. However, termination of the Plan shall not, without the consent of a participant, adversely affect such participant’s rights with respect to amounts then accrued in his/her account.

5.  
Federal Income Taxes
The Plan is a grantor type trust and is not qualified under Section 401 of the Internal Revenue Code. Under Section 671 of the Internal Revenue Code, items of income, deduction or credit in a grantor trust are treated as belonging to the grantor. These items are reported on the income tax return of the grantor, AVX Corporation. Participants must include distributions in taxable income at the time of withdrawal.
 
6.  
Transactions with Parties-In-Interest

Amounts of American Depository Shares of Kyocera Corporation, the Company’s majority shareholder, held by the Plan at December 31 were as follows:
 
 
2004
 
2003
Shares
2,457
 
2,279
Market value per share
$76.98
 
$67.00
Market value
$189,140
 
$152,693
 
Amounts of AVX Corporation common stock held by the Plan at December 31 were as follows:

 
2004 
 
2003 
Shares
37,556
 
41,581
Market value per share
$12.60
 
$16.62
Market value
$473,206
 
$691,076
 
7.  
Risks and Uncertainties

The Plan provides for various investment options in registered investment companies which invest in combinations of stocks, bonds, fixed income securities, mutual funds, and other 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 such changes could materially affect participants’ account balances and the amounts reported in the statement of financial condition with fund information. The market value of the Plan's assets is included as an asset and a liability on the Company’s balance sheet because the Plan’s assets are available to AVX’s general creditors in the event of the Company’s insolvency.

8.  
Subsequent Event

The reported employer contribution receivable as of December 31, 2004 was subsequently received by the Plan on March 11, 2005.
 
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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Administrative Committee has duly caused this annual report to be signed by the undersigned thereunto duly authorized.




















AVX NONQUALIFIED SUPPLEMENTAL RETIREMENT PLAN
  (Name of Plan)

BY:
/S/ KURT P. CUMMINGS
 
Kurt P. Cummings
 
Member of Administrative Committee
   
 
Date: March 31, 2005

 
 
 
 




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SCHEDULE I - INVESTMENTS
As of December 31, 2004


Description
Number of shares/units
Market
Value
Percentage of Net Assets
       
Short-term Temporary Investments
2,364
$2,364  
0.1%
T. Rowe Price Spectrum Income Fund
27,572
333,344 
12.6%
Vanguard Treasury Money Market Fund
170,422
170,422 
6.4%
Janus Balanced Fund
4,709
100,063 
3.8%
Janus Fund
3,390
83,296 
3.1%
Seligman Equity Value Portfolio
35,107
407,906 
15.4%
Templeton Foreign Equity Fund
19,990
245,885 
9.3%
Vanguard 500 Index Fund
1,463
163,384 
6.2%
Lord Abbett Mid-Cap Value Fund
14,608
330,587 
12.5%
PIMCO Total Return Fund
14,357
153,190 
5.8%
AVX Corporation Common Stock
37,556
473,206 
17.8%
Kyocera ADS
2,457
189,140 
7.1%
Total Investments
 
$2,652,787
 


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