AVX NonQualified Supplemental Retirement Plan Form 11-K/A
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549



FORM 11-K/A




ANNUAL REPORT
Pursuant to Section 15(d) of the Securities Exchange Act of 1934
For The Year Ended December 31, 2005

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

INTRODUCTORY NOTE
This amendment to the Annual Report of the AVX Nonqualified Supplemental Retirement Plan on Form 11-K for the year ended December 31, 2005 which was filed with the Securities and Exchange Commission on April 13, 2006 is being filed because the original filing contained an incomplete audit opinion. As a result, the report is being reissued with a complete audit opinion.
 
 
 
 
 
 
 
 
 
 
-1-

AVX NONQUALIFIED
SUPPLEMENTAL RETIREMENT PLAN
INDEX


 
 
Page No.
   
3
   
4
   
5-6
   
7-9
   
10-14
   
15
   
16
   
Exhibit:
  
 
   
 
-2-

Report of Independent Registered Public Accounting Firm


 
Participants and Administrator
AVX Nonqualified Supplemental Retirement Plan
 
We have audited the accompanying statement of financial condition with fund information of AVX Nonqualified Supplemental Retirement Plan (the Plan) as of December 31, 2005, and the related statement of income and changes in plan equity with fund information for the year 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 audit.
 
We conducted our audit 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. The Plan is not required to have nor were we engaged to perform an audit of its 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 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, as well as 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 as of December 31, 2005, and the changes in its net assets available for benefits for the year then ended in conformity with accounting principals generally accepted in the United States of America.
 
Our audit was conducted for the purpose of forming an opinion on the financial statements taken as a whole. The accompanying AVX Nonqualified Supplemental Retirement Plan Schedule I - Investments as of December 31, 2005, is presented for purposes of additional analysis and is not a required part of the 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 our audit 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/ GRANT THORNTON LLP
 
Columbia, South Carolina
April 7, 2006
-3-

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 the income and changes in plan equity for each of the two 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.
 
 
/s/ PricewaterhouseCoopers LLP
 
Atlanta, Georgia
March 31, 2005

-4-
AVX NONQUALIFIED SUPPLEMENTAL RETIREMENT PLAN
STATEMENT OF FINANCIAL CONDITION WITH FUND INFORMATION
As of December 31, 2005


 
Total
 
AVX Stock Fund
  
Kyocera Stock Fund
  
Seligman Equity Value Portfolio
  
T Rowe Price Spectrum Income Fund
  
MainStay Cash Reserves Fund
  
Templeton Foreign Equity Fund
  
MainStay S&P 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 $4,775,931)
$5,138,644
 
$19,000
 
$12,796
 
$1,113,560
 
$646,096
 
$578,270
 
$684,800
 
$408,935
 
$420,032
 
$196,787
 
$378,598
 
$679,770
AVX Corporation Common Stock (cost $813,314)
885,973
  
885,973
  
---
 
---
 
---
 
---
 
---
 
---
 
---
 
---
 
---
 
---
Kyocera Corporation American Depositary Shares (cost $578,788)
606,442
  
---
 
606,442
  
---
 
---
 
---
 
---
 
---
 
---
 
---
 
---
 
---
Total investments
6,631,059
  
904,973
  
619,238
  
1,113,560
  
646,096
  
578,270
  
684,800
  
408,935
  
420,032
  
196,787
  
378,598
  
679,770
                                               
Receivable:
    
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
Employer contribution
58,370
  
6,702
  
5,595
  
6,186
  
---
 
18,123
  
1,230
  
3,477
  
5,082
  
3,230
  
2,275
  
6,470
                                               
Plan equity
$6,689,429
 
$911,675
 
$624,833
 
$1,119,746
 
$646,096
 
$596,393
 
$686,030
 
$412,412
 
$425,114
 
$200,017
 
$380,873
 
$686,240


 
 

The accompanying notes are an integral part of this financial statement.
-5-
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 this financial statement.
-6-
AVX NONQUALIFIED SUPPLEMENTAL RETIREMENT PLAN
STATEMENT OF INCOME AND CHANGES IN PLAN EQUITY WITH FUND INFORMATION
For the year ended December 31, 2005

 
 
Total
 
AVX Stock Fund
  
Kyocera Stock Fund
  
Seligman Equity Value Portfolio
  
T Rowe Price Spectrum Income Fund
  
Vanguard Treasury Money Market Fund
  
MainStay Cash Reserves Fund
  
Templeton Foreign Equity Fund
  
Vanguard 500 Index Fund
  
MainStay S&P 500 Index Fund
  
Janus Balanced Fund
  
Janus Fund
  
Lord Abbett Mid Cap Value Fund
  
PIMCO Total Return Fund
Net investment income (loss):
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
 
Dividends
$95,933
 
$ 9,315
 
$ 7,025
 
$ 70
 
$ 26,530
 
$ ---
 
$ ---
 
$ 10,703
 
$ 3,362
 
$ 6,282
 
$ 7,577
 
$ 138
 
$ 1,554
 
$ 23,377
 
Interest
16,402
 
---
 
---
 
---
 
---
 
9,184
 
7,218
 
---
 
---
 
---
 
---
 
---
 
---
 
---
 
Net appreciation (depreciation) in fair value of investments
324,235
 
144,682
 
(30,789)
  
101,759
 
(13,240)
  
---
  
---
  
54,286
 
3,880
 
4,479
 
23,728
 
4,610
 
36,391
 
(5,551)
 
Total income (loss)
436,570
 
153,997
 
(23,764)
  
101,829
 
13,290
 
9,184
 
7,218
 
64,989
 
7,242
 
10,761
 
31,305
 
4,748
 
37,945
 
17,826
                                                         
Contributions:
                                                      
 
Employer
120,878
 
42,965
 
9,605
 
8,455
 
---
 
6,731
 
18,428
 
1,875
 
3,356
 
3,597
 
8,528
 
4,168
 
2,513
 
10,657
 
Employee
486,258
 
72,228
 
63,019
 
48,238
 
---
 
71,595
 
21,659
 
12,327
 
40,784
 
13,156
 
50,420
 
16,738
 
10,370
 
65,724
 
Total contributions
607,136
 
115,193
 
72,624
 
56,693
 
---
 
78,326
 
40,087
 
14,202
 
44,140
 
16,753
 
58,948
 
20,906
 
12,883
 
76,381
                                                         
Deductions:
    
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
 
Benefit payments
(791,698)
  
(93,475)
  
(20,142)
  
(15,639)
  
(1,914)
  
(102,673)
  
---
  
(70,852)
  
(121,775)
  
---
  
(79,899)
  
(83,783)
  
(201,546)
  
---
Income (loss) and change in plan equity
252,008
 
175,715
 
28,718
 
142,883
 
11,376
 
(15,163)
  
47,305
 
8,339
 
(70,393)
  
27,514
 
10,354
 
(58,129)
  
(150,718)
  
94,207
                                                         
Transfer of funds from employee investment elections, net
---
 
1,990
 
(91)
  
33,950
 
(4)
  
(542,848)
  
549,088
 
(36,154)
  
(399,022)
  
384,898
 
(467)
  
(84,645)
  
28,101
 
65,204
                                                         
Transfer of funds from AVX SERP Plan
3,757,246
 
255,540
 
403,137
 
532,931
 
301,380
 
381,383
 
---
 
467,346
 
302,620
 
---
 
311,938
 
258,683
 
172,512
 
369,776
                                                         
Plan equity at beginning of year
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
                                                         
Plan equity at end of year
$6,689,429
 
$911,675
 
$624,833
 
$1,119,746
 
$646,096
 
$ ---
  
$596,393
 
$686,030
 
$ ---
  
$412,412
 
$425,114
 
$200,017
 
$380,873
 
$686,240
 
 

 
The accompanying notes are an integral part of this financial statement.
-7-
AVX NONQUALIFIED SUPPLEMENTAL RETIREMENT PLAN
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 this financial statement.
-8-
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 this financial statement.
-9-
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. Effective January 1, 2005 the AVX Corporation SERP Plan, that was established January 1, 1998, was merged into the Plan. All balances from the SERP Plan were transferred into the Plan. Any employee eligible to participate in the AVX Corporation Retirement Plan whose annual compensation is in excess of $210,000 (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 was the Plan’s trustee until September 2005. All Plan assets were moved to New York Life (the "Trustee") at that time. New York Life is now the Plan’s trustee and record keeper.

Deferred Compensation Contribution
The Plan is split into two parts. There is a SERP portion and a Supplemental Retirement portion. The SERP portion allows each participant to defer receipt of all or a portion of annual compensation currently in excess of $210,000 (as such limit is defined by the Internal Revenue Code) otherwise payable by the Company to such employee. The Supplemental Retirement portion allows participants to defer an amount from 1% to 3% of eligible compensation (currently between $210,000 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.

Company Matching Contribution
The Company will match contributions equal to 100% of the first 3% of the amount that is deferred under the SERP portion of the Plan. The Company will also match contributions equal to 100% of the first 3% of the amount deferred that is related to eligible compensation between $210,000 (as indexed) and $600,000 in the Supplemental Retirement Plan.

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.
-10-
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.

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. Plan investments in any investment companies, unit investment trusts or similar investment funds are valued daily at their closing net asset values (or unit value) per share. 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. 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.

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.

Dividend and Interest Income Recognition
Interest income is accrued when earned. Dividend income is recorded on the ex-dividend date.

3.  
Investment Programs

As of December 31, 2005, the investment alternatives include the following:

MainStay Cash Reserves Fund: The MainStay Cash Reserves Fund seeks a high level of current income while preserving capital and maintaining liquidity. The Fund invests in short-term dollar denominated securities. This fund had ten participants at December 31, 2005 and no participants at December 31, 2004.
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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, 2005 and 2004. 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 eight participants at December 31, 2005 and ten participants at December 31, 2004.

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, 2005 and 2004.

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 eight participants at December 31, 2005 and nine participants at December 31, 2004.

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 eleven participants at December 31, 2005 and fifteen participants at December 31, 2004.

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, 2005 and 2004.

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 six participants at December 31, 2005 and seven participants at December 31, 2004.

MainStay S&P 500 Index Fund: The MainStay S&P 500 Index Fund seeks to provide investment results that correspond to the total return performance (reflecting reinvestment of dividends) of common stocks in the aggregate, as represented by the S&P 500 Index. This fund had ten participants at December 31, 2005 and no participants at December 31, 2004.

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 four participants at December 31, 2005 and six participants at December 31, 2004.

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 five participants at December 31, 2005 and three participants at December 31, 2004.
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The Plan's realized losses for the years ended December 31 were as follows:

 
2005
  
2004
  
2003
Proceeds
$4,786,460
  
$ 1,530,197
  
$ 735,624
Aggregate cost
4,806,648
  
1,786,634
  
838,190
Realized losses
(20,188)
  
(256,437)
  
(102,566)
Change in unrealized appreciation (depreciation)
344,423
  
235,214
  
783,971
Net appreciation (depreciation) in fair value of investments
$ 324,235
  
$ (21,223)
  
$ 681,405

The Plan's unrealized appreciation (depreciation) of investments at December 31 were as follows:

 
2005
  
2004
  
2003
AVX Corporation Common Stock
$72,659
  
$(85,763)
  
$ 99,838
Kyocera Corporation ADS
27,654
  
18,016
  
(4,182)
Other investments
362,713
  
111,242
  
(287,375)
Total unrealized appreciation (depreciation)
$ 463,026
  
$ 43,495
  
$(191,719)

4.  
Nonparticipant-Directed Investments:

Information about the net assets and the significant components of the changes in net assets relating to the nonparticipant-directed investments is as follows:
   
December 31,
   
2005
  
2004
Net Assets:
        
MainStay Cash Reserves Fund
$
6,574
$
---
AVX Corporation Common Stock
  
276,097
  
222,256
Total Assets
$
282,671
$
222,256
 
 
Year Ended
 
December 31, 2005
Changes in Net Assets:
      
Contributions
$
35,797
  
Dividends
  
1,529
  
Net depreciation
  
45,746
  
Benefits paid to participants
  
(22,657)
  
Transfers to participant-directed investments
  
---
  
Total
$
60,415
  

5.  
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.
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6.  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.

7.  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:

 
2005
  
2004
Shares
8,287
  
2,457
Market value per share
$73.18
  
$76.98
Market value
$606,442
  
$189,140

Amounts of AVX Corporation common stock held by the Plan at December 31 were as follows:

 
2005 
  
2004 
Shares
61,186
  
37,556
Market value per share
$14.48
  
$12.60
Market value
$885,973
  
$473,206

8.  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.

9.  Subsequent Event

The reported employer contribution receivable as of December 31, 2005 was subsequently received by the Plan on March 6, 2006.
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SIGNATURE

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: April 17, 2006

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AVX NONQUALIFIED SUPPLEMENTAL RETIREMENT PLAN
SCHEDULE I - INVESTMENTS
As of December 31, 2005


Description
Number of shares/units
Market Value
Percentage of Net Assets
       
T. Rowe Price Spectrum Income Fund
54,800
646,096
9.7%
MainStay Cash Reserves Fund
610,066
610,066
9.2%
Janus Balanced Fund
18,685
420,032
6.3%
Janus Fund
7,708
196,787
3.0%
Seligman Equity Value Portfolio
87,065
1,113,560
16.8%
Templeton Foreign Equity Fund
54,006
684,800
10.3%
MainStay S&P 500 Index Fund
14,219
408,935
6.2%
Lord Abbett Mid-Cap Value Fund
16,894
378,598
5.7%
PIMCO Total Return Fund
64,740
679,770
10.3%
AVX Corporation Common Stock
61,186
885,973
13.4%
Kyocera ADS
8,287
606,442
9.1%
Total Investments
 
$6,631,059