serp11k2007.htm
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, 2007
 
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
 
 
 
 
 
 
 
 
 



AVX NONQUALIFIED
SUPPLEMENTAL RETIREMENT PLAN
INDEX



 
Page No.
   
Report of Independent Registered Public Accounting Firm
2
   
Statement of Financial Condition with Fund Information as of December 31, 2007 and 2006
3-4
   
Statement of Income and Changes in Plan Equity with Fund Information for the years ended
December 31, 2007, 2006 and 2005
5-7
   
Notes to Financial Statements
8-11
   
Signature
12
   
Schedule I – Investments
13
   
Exhibit:
  
 
   

-1-
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
 
 
 
To the Participants and Administrator of the
AVX Nonqualified Supplemental Retirement Plan:
 
 
We have audited the accompanying statement of financial condition with fund information of the AVX Nonqualified Supplemental Retirement Plan (the Plan) as of December 31, 2007 and 2006, and the related statements of income and changes in fund equity with fund information for each of the three years in the period ended December 31, 2007.  Our audits of the basic financial statements included the financial statement schedule listed in the index appearing under Schedule I.  These financial statements and financial statement schedule are the responsibility of the Company’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.  The Company 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 Company’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, as well as evaluating the overall financial statement presentation.  We believe that our audits provide a reasonable basis for our opinion.
 
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Plan as of December 31, 2007 and 2006, and the results of its operations for each of the three years in the period ended December 31, 2007, in conformity with accounting principles generally accepted in the United States of America.  Also, in our opinion, the related financial statement schedule, when considered in relation to the basic financial statements taken as a whole, presents fairly, in all material respects, the information set forth therein.
 

 
/s/ GRANT THORNTON LLP
Columbia, South Carolina
March 27, 2008
 
-2-
AVX NONQUALIFIED SUPPLEMENTAL RETIREMENT PLAN
STATEMENT OF FINANCIAL CONDITION WITH FUND INFORMATION
As of December 31, 2007
 
 
 
 
Total
  
AVX Stock Fund
  
Kyocera Stock Fund
  
Seligman Large Cap Value Fund
  
T. Rowe Price Spectrum Income Fund
  
MainStay Cash Reserves Fund
  
MainStay S&P 500 Index Fund
  
Janus Balanced Fund
  
Janus Fund
  
Lord Abbett Mid Cap Value Fund
  
PIMCO Total Return Fund
  
American Funds - EuroPacific Growth Fund
ASSETS:
                                              
Investments at fair value:
                                              
Other investments            
(cost $5,933,436)
 $6,587,037
  
 $    26,003
  
 $  18,373
  
 $1,079,288
  
 $743,544
  
 $3,187,821
  
 $ 319,299
  
 $ 226,388
  
 $277,382
  
 $210,845
  
 $192,308
  
 $  305,786
AVX Corporation Common Stock  (cost $1,096,670)
   1,070,125
  
   1,070,125
  
           -
  
              -
  
           -
  
              -
  
            -
  
            -
  
           -
  
            -
  
            -
  
              -
Kyocera Corporation American Depositary Shares (cost $745,273)
     887,202
  
              -
  
   887,202
  
              -
  
           -
  
              -
  
            -
  
            -
  
           -
  
            -
  
            -
  
              -
Total investments
   8,544,364
  
   1,096,128
  
   905,575
  
   1,079,288
  
   743,544
  
   3,187,821
  
    319,299
  
    226,388
  
   277,382
  
   210,845
  
   192,308
  
     305,786
                                               
Receivable:
                                              
Employer contribution
       92,561
  
         6,651
  
      5,158
  
       12,557
  
           -
  
       22,551
  
       5,023
  
       5,265
  
      7,874
  
       7,905
  
       9,944
  
         9,633
                                               
Plan equity
 $8,636,925
  
 $1,102,779
  
 $910,733
  
 $1,091,845
  
 $743,544
  
 $3,210,372
  
 $ 324,322
  
 $ 231,653
  
 $285,256
  
 $218,750
  
 $202,252
  
 $  315,419
 
 
 
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
-3-
AVX NONQUALIFIED SUPPLEMENTAL RETIREMENT PLAN
STATEMENT OF FINANCIAL CONDITION WITH FUND INFORMATION
As of December 31, 2006
 
 
 
Total
  
AVX Stock Fund
  
Kyocera Stock Fund
  
Seligman Large Cap Value Fund
  
T. Rowe Price Spectrum Income Fund
  
MainStay Cash Reserves Fund
  
Templeton Foreign Fund
  
MainStay S&P 500 Index Fund
  
Janus Balanced Fund
  
Janus Fund
  
Lord Abbett Mid Cap Value Fund
  
PIMCO Total Return Fund
  
American Funds - EuroPacific Growth Fund
ASSETS:
                                                  
Investments at fair value:
                                                  
Other investments            (cost $5,278,905)
 $5,839,909
  
 $    24,248
  
 $  22,957
  
 $   897,913
  
 $700,232
  
 $2,702,188
  
 $ 267,198
  
 $ 303,293
  
 $254,469
  
 $219,465
  
 $305,819
  
 $  142,127
  
 $              -
AVX Corporation Common Stock  (cost $938,327)
   1,029,621
  
   1,029,621
  
             -
  
                -
  
             -
  
                -
  
              -
  
              -
  
             -
  
              -
  
              -
  
                -
  
                 -
Kyocera Corporation American Depositary Shares (cost $651,445)
     872,703
  
                -
  
   872,703
  
                -
  
             -
  
                -
  
              -
  
              -
  
             -
  
              -
  
              -
  
                -
  
                 -
Total investments
   7,742,233
  
   1,053,869
  
   895,660
  
     897,913
  
   700,232
  
   2,702,188
  
    267,198
  
    303,293
  
   254,469
  
   219,465
  
   305,819
  
     142,127
  
                 -
                                                   
Receivable:
                                                  
Employer contribution
       92,268
  
         9,354
  
      6,480
  
       12,463
  
             -
  
       30,556
  
              -
  
       5,127
  
      7,115
  
       7,036
  
       2,822
  
         5,705
  
          5,610
                                                   
Plan equity
 $7,834,501
  
 $1,063,223
  
 $902,140
  
 $   910,376
  
 $700,232
  
 $2,732,744
  
 $ 267,198
  
 $ 308,420
  
 $261,584
  
 $226,501
  
 $308,641
  
 $  147,832
  
 $       5,610
 
 
 
 
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
 
-4-
AVX NONQUALIFIED SUPPLEMENTAL RETIREMENT PLAN
STATEMENT OF INCOME AND CHANGES IN PLAN EQUITY WITH FUND INFORMATION
For the year ended December 31, 2007
 
 
 
   
Total
  
AVX Stock Fund
  
Kyocera Stock Fund
  
Seligman Large Cap Value Fund
  
T. Rowe Price Spectrum Income Fund
  
MainStay Cash Reserves Fund
  
Templeton Foreign Fund
  
MainStay S&P 500 Index Fund
  
Janus Balanced Fund
  
Janus Fund
  
Lord Abbett Mid Cap Value Fund
  
PIMCO Total Return Fund
  
American Funds - EuroPacific Growth Fund
Net investment income (loss):
                                                  
 
 Dividends
 $    84,422
  
 $      12,403
  
 $    10,087
  
 $             211
  
 $      33,866
  
 $            -
  
 $            -
  
 $        5,432
  
 $     6,137
  
 $      1,364
  
 $      1,006
  
 $      8,421
  
 $    5,495
 
 Interest
          136,680
  
               -
  
             -
  
                  -
  
                -
  
      136,680
  
               -
  
                -
  
             -
  
                -
  
             -
  
           -
  
              -
 
 Net appreciation (depreciation) in fair value of investments
            (2,299)
  
      (117,208)
  
     (75,603)
  
            82,019
  
           9,446
  
               -
  
         (1,498)
  
           8,090
  
      18,905
  
         30,851
  
       (4,813)
  
     6,891
  
       40,621
 
 Total income (loss)
          218,803
  
      (104,805)
  
     (65,516)
  
            82,230
  
         43,312
  
      136,680
  
         (1,498)
  
         13,522
  
      25,042
  
         32,215
  
       (3,807)
  
    15,312
  
       46,116
                                                     
 Contributions:
                                                  
 
 Employer
          255,361
  
         86,537
  
      11,637
  
            25,937
  
                -
  
        44,979
  
               -
  
         10,151
  
      11,069
  
         14,909
  
       15,972
  
     15,650
  
       18,520
 
 Employee
          753,550
  
         99,251
  
      87,515
  
            73,302
  
                -
  
      295,969
  
          1,293
  
         36,279
  
      28,578
  
         42,756
  
       35,026
  
      23,458
  
       30,123
 
 Total contributions
       1,008,911
  
       185,788
  
      99,152
  
            99,239
  
                -
  
      340,948
  
          1,293
  
         46,430
  
      39,647
  
         57,665
  
       50,998
  
       39,108
  
       48,643
                                                     
 Deductions:
                                                  
 
 Benefit payments
         (425,290)
  
        (41,427)
  
     (25,043)
  
                  -
  
                -
  
               -
  
       (51,943)
  
        (44,050)
  
     (94,620)
  
        (31,125)
  
    (137,082)
  
            -
  
              -
 Income (loss) and change in plan equity
          802,424
  
         39,556
  
        8,593
  
          181,469
  
         43,312
  
      477,628
  
       (52,148)
  
         15,902
  
     (29,931)
  
        8,755
  
      (89,891)
  
    54,420
  
       94,759
                                                     
 Transfer of funds from employee investment elections, net
                  -
  
               -
  
             -
  
                  -
  
                -
  
               -
  
     (215,050)
  
                -
  
             -
  
                -
  
             -
  
            -
  
     215,050
                                                     
 Plan equity at beginning of year
       7,834,501
  
    1,063,223
  
     902,140
  
          910,376
  
       700,232
  
    2,732,744
  
      267,198
  
       308,420
  
     261,584
  
     226,501
  
     308,641
  
     147,832
  
         5,610
                                                     
 Plan equity at end of year
 $ 8,636,925
  
 $ 1,102,779
  
 $  910,733
  
 $    1,091,845
  
 $     743,544
  
 $ 3,210,372
  
 $            -
  
 $     324,322
  
 $  231,653
  
 $   285,256
  
 $  218,750
  
 $   202,252
  
 $  315,419
 
 
 
The accompanying notes are an integral part of these 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, 2006
 
 
   
 Total
  
 AVX Stock Fund
  
 Kyocera Stock Fund
  
 Seligman Large Cap Value Fund
  
 T. Rowe Price Spectrum Income Fund
  
 MainStay Cash Reserves Fund
  
 Templeton Foreign Fund
  
 MainStay S&P 500 Index Fund
  
 Janus Balanced Fund
  
 Janus Fund
  
 Lord Abbett Mid Cap Value Fund
  
 PIMCO Total Return Fund
  
 American Funds - EuroPacific Growth Fund
 Net investment income (loss):
                                                  
 
 Dividends
 $      76,631
  
 $      10,525
  
 $     7,856
  
 $        743
  
 $      30,400
  
 $            -
  
 $       5,348
  
 $        4,844
  
 $     5,085
  
 $       734
  
 $      1,593
  
 $    9,503
  
 $           -
 
 Interest
       102,514
  
               -
  
             -
  
                  -
  
                -
  
      102,514
  
               -
  
                -
  
             -
  
                -
  
             -
  
                -
  
              -
 
 Net appreciation (depreciation) in fair value of investments
       538,984
  
         19,688
  
     196,884
  
    109,214
  
         23,736
  
               -
  
        57,623
  
         40,816
  
      29,666
  
   21,042
  
       43,619
  
          (3,304)
  
              -
 
 Total income (loss)
      718,129
  
         30,213
  
     204,740
  
    109,957
  
         54,136
  
      102,514
  
        62,971
  
         45,660
  
      34,751
  
  21,776
  
       45,212
  
           6,199
  
              -
                                                     
 Contributions:
                                                  
 
 Employer
      207,777
  
         77,171
  
      16,330
  
       18,822
  
                -
  
        43,536
  
          1,302
  
           8,604
  
      12,197
  
       10,439
  
        5,098
  
           8,668
  
         5,610
 
 Employee
      623,923
  
         89,707
  
      80,819
  
      61,749
  
                -
  
      272,844
  
        17,007
  
         24,373
  
      17,508
  
    23,227
  
       12,443
  
         24,246
  
 ---
 
 Total contributions
      831,700
  
       166,878
  
      97,149
  
      80,571
  
                -
  
      316,380
  
        18,309
  
         32,977
  
      29,705
  
   33,666
  
       17,541
  
         32,914
  
         5,610
                                                     
 Deductions:
                                                  
 
 Benefit payments
     (404,757)
  
        (45,543)
  
     (24,582)
  
            -
  
                -
  
               -
  
       (44,777)
  
        (39,248)
  
     (86,664)
  
   (28,958)
  
    (134,985)
  
                -
  
              -
 Income (loss) and change in plan equity
   1,145,072
  
       151,548
  
     277,307
  
     190,528
  
         54,136
  
      418,894
  
        36,503
  
         39,389
  
     (22,208)
  
   26,484
  
      (72,232)
  
         39,113
  
         5,610
                                                     
 Transfer of funds from employee investment elections, net
              -
  
               -
  
             -
  
    (399,898)
  
                -
  
    1,717,457
  
     (455,335)
  
      (143,381)
  
    (141,322)
  
        -
  
             -
  
      (577,521)
  
              -
                                                     
 Plan equity at beginning 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
  
              -
                                                     
 Plan equity at end of year
 $ 7,834,501
  
 $ 1,063,223
  
 $  902,140
  
 $   910,376
  
 $     700,232
  
 $ 2,732,744
  
 $    267,198
  
 $     308,420
  
 $  261,584
  
 $  226,501
  
 $  308,641
  
 $ 147,832
  
 $      5,610
 
 
 
 
The accompanying notes are an integral part of these 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, 2005
 
 
 
   
 Total
  
 AVX Stock Fund
  
 Kyocera Stock Fund
  
 Seligman Large Cap Value Fund
  
 T. Rowe Price Spectrum Income Fund
  
 Vanguard Treasury Money Market Fund
  
 MainStay Cash Reserves Fund
  
 Templeton Foreign 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 these 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, (“AVX”) or (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 is eligible to participate in the SERP portion of the plan and any employee eligible to participate in the AVX Corporation Retirement plan whose annual compensation is in excess of $225,000 (as such limit is defined by the Internal Revenue Code) is eligible to participate in the Supplemental Retirement portion of 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. In December of 2007, the Plan was amended to comply with the final regulations under Internal Revenue Code Section 409A. The Company is the Plan’s sponsor and Plan administrator. New York Life Investment Management, LLC (the “Trustee”) is 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 irrevocably elect to defer receipt of all or a portion of eligible compensation for that year prior to January l of each year.    The Supplemental Retirement portion allows participants to defer an amount from 1% to 3% of eligible compensation (currently between $225,000 and $600,000).  Beginning January 1, 2001, eligible compensation for employee contributions to the supplemental portion is determined based on total compensation less any amount deferred under the SERP portion of the Plan.

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 contingent upon the participant initially investing their deferral in the AVX Stock Fund. The Company will also match contributions equal to 100% of the first 3% of the amount deferred that is related to eligible compensation (currently between $225000 as indexed and $600,000) in the Supplemental portion of the Plan. This match to the Supplemental portion of the plan 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 separation from service, disability, 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-

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 gains (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, 2007, the investment alternatives include the following:

MainStay Cash Reserves Fund: The MainStay Cash Reserves Fund, a money market 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 eleven participants at December 31, 2007 and 2006.

T. Rowe Price Spectrum Income Fund: The T. Rowe Price Spectrum Income Fund, a mutual 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, 2007 and 2006. This fund is no longer an investment alternative for future contributions.

Seligman Large Cap Value Fund: The Seligman Equity Value Portfolio, a mutual fund, seeks capital appreciation through a value-oriented, diversified portfolio comprised of high-quality stocks.  This fund had seven participants at December 31, 2007 and 2006.

Kyocera Stock Fund: This fund is primarily invested 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, 2007 and 2006.

Templeton Foreign Fund: The Templeton Foreign Fund, a mutual fund, seeks long-term capital growth by investing in stocks and debt obligations of companies and governments outside the United States.  This fund had no participants at December 31, 2007 and seven participants at December 31, 2006. This fund is no longer an investment alternative for future contributions.

AVX Stock Fund: This fund is primarily invested 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 twelve participants at December 31, 2007 and eleven participants at December 31, 2006.

Janus Balanced Fund: The Janus Balanced Fund, a mutual 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 eight participants at December 31, 2007 and seven participants at December 31, 2006.

Janus Fund: The Janus Fund, a mutual 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 eight participants at December 31, 2007 and six participants at December 31, 2006.

MainStay S&P 500 Index Fund: The MainStay S&P 500 Index Fund, a mutual 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 seven participants at December 31, 2007 and six participants at December 31, 2006.
-9-

Lord Abbett Mid Cap Value Fund: The Lord Abbett Mid Cap Value Fund, a mutual 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, 2007 and five participants at December 31, 2006.

PIMCO Total Return Fund: The PIMCO Total Return Fund, a mutual fund, seeks maximum total return by investing primarily in fixed income securities of varying maturities.  This fund had four participants at December 31, 2007 and 2006.

American Funds- EuroPacific Growth Fund:  The American Funds- EuroPacific Growth Fund, a mutual fund, seeks long-term growth of capital.  The fund normally invests at least 80% of assets in securities of issuers located in Europe and the Pacific Basin.  The fund may also hold cash, money market instruments and fixed-income securities.  This fund became available to participants in the Plan for investment on February 26, 2007. This fund had eight participants at December 31, 2007.

The Plan's realized and unrealized gains (losses) for the years ended December 31 are as follows:

 
2007
  
2006
  
2005
Proceeds
$715,234
  
$ 2,502,750
  
$ 4,786,460
Aggregate cost
612,962
  
2,374,296
  
   4,806,648
Realized gains (losses)
102,272
  
128,454
  
 (20,188)
Unrealized appreciation (depreciation)
(104,571)
  
410,530
  
   344,423
Net appreciation (depreciation) in fair value of investments
  $  (2,299)
  
 $ 538,984
  
$ 324,235

The Plan’s unrealized appreciation (depreciation) for investments at December 31 2007, 2006, and 2005 were $768,985, $873,556 and $463,026, respectively.

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,
   
2007
  
2006
Net Assets:
        
      MainStay Cash Reserves Fund
$
8,002
$
   7,428
      AVX Corporation Common Stock
  
329,310
  
315,416
     Total Assets
$
337,312
$
322,844


 
Year Ended
 
December 31, 2007
Changes in Net Assets:
      
    Contributions
$
70,532
  
    Dividends
  
3,817
  
    Net depreciation
  
(37,069)
  
    Benefits paid to participants
  
(22,812)
  
          Total
$
14,468
  

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.
-10-

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 Related Parties

Amounts of American Depository Shares of Kyocera Corporation, the Company’s majority shareholder, held by the Plan at December 31 are as follows:

 
2007
  
2006
Shares
10,172
  
9,197
Market value per share
$87.22
  
$94.89
Market value
$887,202
  
$872,703

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


 
2007
  
2006
Shares
79,741
  
69,616
Market value per share
$13.42
  
$14.79
Market value
$1,070,125
  
$1,029,621

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, 2007 was subsequently received by the Plan on March 12, 2008.
 
-11-
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: March 27, 2008

-12-
AVX NONQUALIFIED SUPPLEMENTAL RETIREMENT PLAN
SCHEDULE I - INVESTMENTS
As of December 31, 2007
 
 
Description
Number of shares/units
Market Value
Percentage of Net Assets
       
MainStay Cash Reserves Fund
             3,232,197
 $      3,232,197
37.8%
 
Seligman Large Cap Value Fund
68,613
1,079,288
12.6%
 
AVX Stock
79,741
1,070,125
12.5%
 
Kyocera Stock
10,172
887,202
10.4%
 
T. Rowe Price Spectrum Income Fund
60,896
743,544
8.7%
 
MainStay S&P 500 Index Fund
9,447
319,299
3.7%
 
American EuroPacific Growth Fund
6,096
305,786
3.6%
 
Janus Fund
8,598
277,382
3.2%
 
Janus Balanced Fund
8,909
226,388
2.6%
 
Lord Abbett Mid Cap Value Fund
11,354
210,845
2.5%
 
PIMCO Total Return Fund
17,990
192,308
2.3%
 
Total Investments
  
$    8,544,364
  
 
 
 
 
-13-