form11knonqual2009.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, 2009

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, 2009 and 2008
3-4
   
Statement of Income and Changes in Plan Equity with Fund Information for the years ended
    December 31, 2009, 2008 and 2007
5-7
   
Notes to Financial Statements
8-13
   
Signature
14
   
Schedule I – Investments
15
   
Exhibit:
  
 
   



























 
 

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
 
To the Participants and Administrator of the
AVX Nonqualified Supplemental Retirement Plan
 
We have audited the accompanying statements of financial condition with fund information of the AVX Nonqualified Supplemental Retirement Plan (the Plan) as of December 31, 2009 and 2008, and the related statements of income and changes in plan equity with fund information for each of the three years in the period ended December 31, 2009.  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 Plan’s management.  Our responsibility is to express an opinion on these financial statements based on our audits.
 
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States).  Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement.  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 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, 2009 and 2008, and the results of its operations for each of the three years in the period ended December 31, 2009, 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
April 1, 2010

 
-2-
 



AVX NONQUALIFIED SUPPLEMENTAL RETIREMENT PLAN
STATEMENT OF FINANCIAL CONDITION WITH FUND INFORMATION
As of December 31, 2009

   
Total
    
AVX Stock Fund
    
Kyocera Stock Fund
    
Seligman Large Cap Value Fund
    
MainStay Cash Reserves Fund
    
MainStay S&P 500 Index Fund
    
Janus Balanced Fund
    
Janus Fund
    
PIMCO Total Return Fund
    
American Funds - EuroPacific Growth Fund
    
Wells Fargo Adv Mid Cap Disc Fund
  
ASSETS:
  
 
    
 
    
 
    
 
    
 
    
 
    
 
    
 
                    
Investments at fair value:
  
 
    
 
    
 
    
 
    
 
    
 
    
 
    
 
                    
Other investments            
(cost $5,854,483)
   $ 7,101,288     $ 34,586     $ 29,481     $ 892,246     $ 3,786,803     $ 251,520     $ 276,749     $ 281,714     $ 1,323,374     $ 110,153     $ 114,662  
AVX Corporation Common Stock  
(cost $1,284,372)
     1,242,142       1,242,142       -       -       -       -       -       -       -       -       -  
Kyocera Corporation American Depositary Shares (cost $841,660)
     1,012,209       -       1,012,209       -       -       -       -       -       -       -       -  
Total investments
     9,355,639       1,276,728       1,041,690       892,246       3,786,803       251,520       276,749       281,714       1,323,374       110,153       114,662  
                                                                                         
Receivable:
                                                                                        
Employer contribution
     35,925       4,598       4,306       4,653       15,374       924       1,483       924       3,663       -       -  
Employee contribution
     6,639       589       258       667       1,346       741       697       701       899       214       527  
Total Contribution receivable
     42,564       5,187       4,564       5,320       16,720       1,665       2,180       1,625       4,562       214       527  
                                                                                         
Plan equity
   $ 9,398,203     $ 1,281,915     $ 1,046,254     $ 897,566     $ 3,803,523     $ 253,185     $ 278,929     $ 283,339     $ 1,327,936     $ 110,367     $ 115,189  
















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, 2008


   
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 $6,423,011)
   $ 6,043,485     $ 14,456     $ 21,808     $ 709,621     $ 673,350     $ 3,479,395     $ 197,181     $ 196,942     $ 174,407     $ 134,159     $ 294,902     $ 147,264  
AVX Corporation Common Stock (cost $1,225,661)
     733,823       733,823       -       -       -       -       -       -       -       -       -       -  
Kyocera Corporation American Depositary Shares (cost $803,485)
     790,063       -       790,063       -       -       -       -       -       -       -       -       -  
Total investments
     7,567,371       748,279       811,871       709,621       673,350       3,479,395       197,181       196,942       174,407       134,159       294,902       147,264  
                                                                                                 
Receivable:
                                                                                                
Employer contribution
     67,630       3,650       5,433       10,716       -       25,968       2,837       2,978       3,901       1,348       9,117       1,682  
Employee contribution
     2,252       189       168       114       -       3,047       60       (48 )     44       (80 )     (950 )     (292 )
Total Contribution 
    receivable
     69,882       3,839       5,601       10,830       -       29,015       2,897       2,930       3,945       1,268       8,167       1,390  
                                                                                                 
Plan equity
   $ 7,637,253     $ 752,118     $ 817,472     $ 720,451     $ 673,350     $ 3,508,410     $ 200,078     $ 199,872     $ 178,352     $ 135,427     $ 303,069     $ 148,654  

















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, 2009

 
  
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
    
Wells Fargo Adv Mid Cap Disc Fund
  
Net investment income (loss):
  
 
    
 
    
 
    
 
    
 
    
 
    
 
    
 
    
 
    
 
    
 
    
 
    
 
  
 Dividends
   $ 96,257     $ 15,049     $ 13,558     $ 444     $ 17,204     $ -     $ 4,547     $ 3,427     $ 1,100     $ -     $ 37,171     $ 1,793     $ 1,964  
 Interest
     6,646                                       6,646                                                          
 Net appreciation in fair value of investments
     1,219,775       449,730       184,021       199,541       56,210       -       54,996       48,947       73,401       7,112       53,389       58,388       34,040  
 Total income
     1,322,678       464,779       197,579       199,985       73,414       6,646       59,543       52,374       74,501       7,112       90,560       60,181       36,004  
                                                                                                         
 Contributions:
                                                                                                        
 Employer
     191,561       46,951       13,953       24,082       -       41,665       9,720       9,076       11,759       -       23,227       4,784       6,344  
 Employee
     247,461       21,124       17,383       22,882       -       76,902       20,640       17,715       19,765       2,565       25,889       8,082       14,514  
 Total contributions
     439,022       68,075       31,336       46,964       -       118,567       30,360       26,791       31,524       2,565       49,116       12,866       20,858  
                                                                                                         
 Deductions:
                                                                                                        
 Fees
     (750 )     (91 )     (79 )                     (580 )                                                        
 Income (loss) and change in plan equity
     1,760,950       532,763       228,836       246,949       73,414       124,633       89,903       79,165       106,025       9,677       139,676       73,047       56,862  
                                                                                                         
 Transfer of funds from employee investment elections and plan investment changes, net
     -       (2,966 )     (54 )     (69,834 )     (746,764 )     170,480       (36,796 )     (108 )     (1,038 )     (145,104 )     885,191       (111,334 )     58,327  
                                                                                                         
 Plan equity at beginning of year
     7,637,253       752,118       817,472       720,451       673,350       3,508,410       200,078       199,872       178,352       135,427       303,069       148,654       -  
                                                                                                         
 Plan equity at end of year
   $ 9,398,203     $ 1,281,915     $ 1,046,254     $ 897,566     $ -     $ 3,803,523     $ 253,185     $ 278,929     $ 283,339     $ -     $ 1,327,936     $ 110,367     $ 115,189  














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, 2008


 
  
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
  
Net investment income (loss):
  
 
    
 
    
 
    
 
    
 
    
 
    
 
    
 
    
 
    
 
    
 
    
 
  
 Dividends
   $ 99,271     $ 13,473     $ 12,093     $ 5,748     $ 35,123     $ -     $ 5,363     $ 5,314     $ 1,586     $ 3,298     $ 13,379     $ 3,894  
 Interest
     68,460                                       68,460                                                  
 Net appreciation (depreciation) in fair value of investments
     (1,603,620 )     (465,292 )     (155,351 )     (420,201 )     (105,317 )     -       (116,847 )     (39,733 )     (110,857 )     (83,431 )     (2,006 )     (104,585 )
 Total income (loss)
     (1,435,889 )     (451,819 )     (143,258 )     (414,453 )     (70,194 )     68,460       (111,484 )     (34,419 )     (109,271 )     (80,133 )     11,373       (100,691 )
                                                                                                 
 Contributions:
                                                                                                
 Employer
     209,308       59,119       10,607       23,303       -       48,549       7,860       11,241       11,806       3,368       22,028       11,427  
 Employee
     421,233       48,778       39,523       19,756       -       181,029       23,814       23,640       24,830       21,260       24,434       14,169  
 Total contributions
     630,541       107,897       50,130       43,059       -       229,578       31,674       34,881       36,636       24,628       46,462       25,596  
                                                                                                 
 Deductions:
                                                                                                
 Benefit payments
     (194,324 )     (6,739 )     (133 )     -       -       -       (44,434 )     (20,240 )     (34,269 )     (28,291 )     -       (60,218 )
 Income (loss) and change in plan equity
     (999,672 )     (350,661 )     (93,261 )     (371,394 )     (70,194 )     298,038       (124,244 )     (19,778 )     (106,904 )     (83,796 )     57,835       (135,313 )
                                                                                                 
 Transfer of funds from employee investment elections, net
     -       -       -       -       -       -       -       (12,003 )     -       473       42,982       (31,452 )
                                                                                                 
 Plan equity at beginning 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  
                                                                                                 
 Plan equity at end of year
   $ 7,637,253     $ 752,118     $ 817,472     $ 720,451     $ 673,350     $ 3,508,410     $ 200,078     $ 199,872     $ 178,352     $ 135,427     $ 303,069     $ 148,654  














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, 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 )     58,755       (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.

 
-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 (the “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, $230,000, and $245,000 for the plan years 2007, 2008 and 2009, respectively (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. These amendments were effective January 1, 2008. 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.

In 2009, the Plan was amended and restated effective January 1, 2010. Among other changes to the Plan, the amendment does not allow for the Supplemental Retirement portion of the Plan with the related eligibility criteria.  In addition, the amended Plan provides that all employer contributions will be paid annually, and plan eligibility is based upon Company discretion.


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 $245,000 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 $245,000 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. Total Company match for any participant in the Plan can not exceed 3% of eligible compensation for the Plan year.

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 including all company contributions.

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.

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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.

Income Recognition
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.  Purchases and sales are recorded on the trade date.

Administrative Expenses
The Plan invests in various mutual funds with revenue-sharing agreements that partially offset fees. Plan fees that are not offset with revenue from these agreements are paid by the Company. In addition, the Company pays Plan fees related to stock administration of the AVX Stock Fund and the Kyocera Stock Fund. These stock administration fees are based on the market value of these funds.

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 in 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.

New Accounting Standards
Guidance issued by the FASB in June 2009 requires companies to recognize in the financial statements the effects of subsequent events that provide additional evidence about conditions that existed at the date of the Statement of Financial Position, including the estimates inherent in the process of preparing financial statements. Companies are not permitted to recognize subsequent events that provide evidence about conditions that did not exist at the date of the Statement of Financial Position but arose after the Statement of Financial Position date and before financial statements are issued. Some non-recognized subsequent events must be disclosed to keep the financial statements from being misleading. For such events a company must disclose the nature of the event, an estimate of its financial effect, or a statement that such an estimate cannot be made. This guidance applies prospectively for interim or annual financial periods ending after June 15, 2009. The adoption of this guidance did not affect the financial condition or income and changes in plan equity.

Guidance issued by the FASB in June 2009 established the “FASB Accounting Standards Codification” (“Codification”) as the single source of authoritative nongovernmental U.S. GAAP which was launched on July 1, 2009. The Codification does not change current U.S. GAAP, but is intended to simplify user access to all authoritative U.S. GAAP by providing all the authoritative literature related to a particular topic in one place. All existing accounting standard documents will be superseded and all other accounting literature not included in the Codification will be considered non-authoritative. Rules and interpretive releases of the Securities and Exchange Commission (SEC) under authority of federal securities laws are also sources of authoritative GAAP for SEC registrants. The Codification is effective for interim and annual periods ending after September 15, 2009 and did not have an impact on the Plan’s financial condition or income and changes in plan equity.

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3.  
Investment Programs

As of December 31, 2009, 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. This fund invests in short-term dollar denominated securities. This fund had eleven participants at December 31, 2009 and ten participants at December 31, 2008.
 
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 no participants at December 31, 2009 and three participants at December 31, 2008. This fund is no longer an investment alternative for future contributions.

Seligman Large Cap Value Fund: The Seligman Large Cap Value Fund, 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, 2009 and 2008.

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, 2009 and three participants at December 31, 2008.

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 fifteen participants at December 31, 2009 and twelve participants at December 31, 2008.

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 seven participants at December 31, 2009 and six participants at December 31, 2008.

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 six participants at December 31, 2009 and seven participants at December 31, 2008.
 
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 five participants at December 31, 2009 and six participants at December 31, 2008.

Lord Abbett Mid Cap Value Fund: The Lord Abbett Mid Cap Value Fund, a mutual fund, seeks capital appreciation.  Under normal circumstances, this 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 no participants at December 31, 2009 five participants at December 31, 2008. This fund is no longer an investment alternative for future contributions.

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 eight participants at December 31, 2009 and four participants at December 31, 2008.

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 six participants at December 31, 2009 and 2008.

Wells Fargo Advantage Mid Cap Disciplined Fund: The Wells Fargo Advantage Mid Cap Disciplined Fund, a mutual fund, seeks long term capital appreciation. The fund principally invests in equity securities of medium-capitalization companies that believed present attractive opportunities. It normally invests at least 80% of assets in securities of medium-capitalization companies and up to 25% of total assets in foreign securities. This fund became an investment alternative for plan participants during 2009. This fund had five participants at December 31, 2009.
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The Plan's realized and unrealized gains (losses) for the years ended December 31 are as follows:

   
2009
    
2008
    
2007
  
Proceeds
   $ 1,686,958     $ 305,505     $ 715,234  
Aggregate cost
     1,842,307       255,354       612,962  
Realized gains (losses)
     (155,349 )     50,151       102,272  
Unrealized appreciation (depreciation)
     1,375,124       (1,653,771 )     (104,571 )
Net appreciation (depreciation) in fair value of investments
   $ 1,219,775     $ (1,603,620 )   $ (2,299 )

The Plan’s unrealized appreciation (depreciation) for investments at December 31 2009, 2008, and 2007 were $490,338, $(884,786) and $768,985, respectively.

4.  
Fair Value:
 
Fair Value Hierarchy:
 
The fair value framework requires the categorization of assets and liabilities into three levels based upon the assumptions (inputs) used to value the assets or liabilities. Level 1 provides the most reliable measure of fair value, whereas Level 3 generally requires significant management judgment. The three levels are defined as follows:
 
§  
Level 1: Unadjusted quoted prices in active markets for identical assets and liabilities.

§  
Level 2: Observable inputs other than those included in Level 1. For example, quoted prices for similar assets or liabilities in active markets or quoted prices for identical assets or liabilities in inactive markets.

§  
Level 3: Unobservable inputs reflecting management’s own assumptions about the inputs used in pricing the asset or liability.


         
Based on
  
   
Fair Value at December 31,
2009
    
Quoted prices in active markets
(Level 1)
    
Other observable inputs 
(Level 2)
    
Unobservable inputs 
(Level 3)
  
Assets measured at fair value on a recurring basis:
                        
Cash Reserves Fund
   $ 3,850,870     $ 3,850,870     $ -     $ -  
Other Investments
     3,250,418       3,250,418       -       -  
AVX Stock
     1,242,142       1,242,142       -       -  
Kyocera Stock
     1,012,209       1,012,209       -       -  
Total
   $ 9,355,639     $ 9,355,639     $ -     $ -  



         
Based on
  
   
Fair Value at December 31,
2008
    
Quoted prices in active markets
(Level 1)
    
Other observable inputs 
(Level 2)
    
Unobservable inputs 
(Level 3)
  
Assets measured at fair value on a recurring basis:
                        
Cash Reserves Fund
   $ 3,515,659     $ 3,515,659     $ -     $ -  
Other Investments
     2,527,826       2,527,826       -       -  
AVX Stock
     733,823       733,823       -       -  
Kyocera Stock
     790,063       790,063       -       -  
Total
   $ 7,567,371     $ 7,567,371     $ -     $ -  


Assets valued using Level 1 inputs in the table above represent assets from the Plan and are valued based on the number of shares in the funds using a closing price per share traded in an active market.
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5.  
Non participant-Directed Investments:

Information about the net assets and the significant components of the changes in net assets relating to the non participant-directed investments is as follows:

   
December 31,
  
   
2009
    
2008
  
Net Assets:
            
      MainStay Cash Reserves Fund
   $ 11,281     $ 4,688  
      AVX Corporation Common Stock
     405,178       237,973  
     Total Assets
   $ 416,459     $ 242,661  


   
Year Ended
  
   
December 31, 2009
  
Changes in Net Assets:
      
    Contributions
   $ 27,579  
    Dividends
     4,909  
    Net appreciation
     144,242  
    Forfeitures and fees
     (2,932 )
          Total
   $ 173,798  

6.  
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.

7. 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.

For the Plan year 2008, certain participant contributions were made to the plan before all eligibility criteria was met. The compensation of these participants was not yet in excess of the amount determined under Section 401(a)(17) of the Code for the Plan year 2008. These amounts totaling $2,912 related to the employee contribution and $2,912 related to the employer match, net of any gains and losses, were transferred into a forfeiture account into the MainStay Cash Reserves Fund and reflected as net employee and employer receivables and payables between the funds in the accompanying statement of financial condition as of December 31, 2008. The gross amount of excess contributions was distributed to the participants by the Company. As discussed in Note 1 above, the Plan was amended effective January 1, 2010. The amendment to the Plan does not allow for the Supplemental Retirement portion of the Plan with the related eligibility criteria.

Certain participant contributions were not made to the Plan in accordance with participant elections. These amounts are reported as a receivable in the accompanying statement of financial condition as of December 31, 2008 and will be contributed by the participants to the Plan.

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8. 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:

   
2009
    
2008
  
Shares
     11,462       10,917  
Market value per share
   $ 88.31     $ 72.37  
Market value
   $ 1,012,209     $ 790,063  

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


   
2009
    
2008
  
Shares
     98,038       92,421  
Market value per share
   $ 12.67     $ 7.94  
Market value
   $ 1,242,142     $ 733,823  



9. Risks and Uncertainties

The Plan provides for various investment options in common stocks and 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.

10. Subsequent Event

The reported employer contribution receivable as of December 31, 2009 was subsequently received by the Plan on March 3, 2010.



 
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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 1, 2010








 
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AVX NONQUALIFIED SUPPLEMENTAL RETIREMENT PLAN
SCHEDULE I - INVESTMENTS
As of December 31, 2009

Description
  
Number of shares/units
    
Market Value
    
Percentage of Net Assets
  
                   
MainStay Cash Reserves Fund
     3,850,870     $ 3,850,870       41.2 %
Seligman Large Cap Value Fund
     72,481       892,246       9.5 %
AVX Stock
     98,038       1,242,142       13.3 %
Kyocera Stock
     11,462       1,012,209       10.8 %
MainStay S&P 500 Index Fund
     9,798       251,520       2.7 %
American EuroPacific Growth Fund
     2,920       110,153       1.2 %
Janus Fund
     10,728       281,714       3.0 %
Janus Balanced Fund
     11,277       276,749       3.0 %
PIMCO Total Return Fund
     122,535       1,323,374       14.1 %
Wells Fargo Adv Mid Cap Disciplined Fund
     6,478       114,662       1.2 %
Total Investments
           $ 9,355,639          



 
 
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